December 17 Colorado Energy Cheat Sheet: Environmental ‘Propaganda’ Agency; electric rate hikes called ‘discrimination’; anti-energy activists promise to ‘ratchet up’ efforts
Filed under: CDPHE, Environmental Protection Agency, Legislation, New Energy Economy, regulations, renewable energy, solar energy, wind energy
Some commodity pricing is giving Colorado Xcel ratepayers a temporary reprieve from escalating energy costs:
Xcel said the new rates will result in “significantly lower bills, particularly for natural gas customers, for the second half of the current winter heating season.
“Compared on a year-to-year basis to better gauge the seasonal impacts of weather, both residential and small-business customers’ (natural gas) bills will be approximately 21 percent lower next quarter, when compared to the first quarter of 2015,” Xcel said.
Electricity bills are expected to drop about 5 percent compared to the current quarter, the utility said.
For the most part, Xcel passes changes in commodity prices, and the change in costs associated with supplying power and natural gas, along to customers on a dollar-per-dollar basis.
Commodity prices fluctuate, but the downward trend will be welcome for as long as it sticks around, or until it is offset by higher energy costs elsewhere, due to expensive replacement of baseload power with exotic, renewable energy sources.
The next legislative session should feature quite a few oil and gas battles, with one Democratic State Representative queueing up a bill to attack natural resource producers:
State Rep. Joe Salazar, D-Thornton, plans to introduce a bill in the upcoming legislative session that would force oil and gas companies to compensate residents for any loss in property value tied to drilling activities, including damage done by earthquakes linked to deep-earth wastewater injection wells. But state Sen. Jerry Sonnenberg, R-Sterling, has vowed to block the measure in the Senate.
“If it comes to my committee, I’d do everything I can to make it go away,” Sonnenberg said. “Quite frankly, it’s another serious attempt to run oil and gas companies out of business in Colorado… Everyone knows the pro- oil-and-gas bills go to the House to die and that the anti- oil-and-gas bills go to die in the Senate.”
That’s the response Salazar said he expected.
“This shouldn’t be a politicized fight,” he said last Saturday at a Thornton town hall he convened on the issue. “I believe we (in state government) need to give up some of the power to local governments. They need to be able to police these industries in their area.”
The benefit of a divided legislature is that extreme bills like this will likely not make it too far in the opposing chamber. But the bill will still be heard, and we expect some rhetorical fireworks over legislation similar to this.
Anti-energy activists in our state plan to “ratchet up” their efforts beyond legal means in the near future:
The leader of a national activist organization behind ban-fracking campaigns in Colorado, Ohio and elsewhere is calling on activists to “ratchet up” civil disobedience and begin “filling up jails.”
The comments are from Thomas Linzey, founder of the Community Environmental Legal Defense Fund (CELDF) in an interview he did with Chris Hedges’ Days of Revolt. From the interview:
HEDGES: “Well, you have talked about it as a kind of military operation. Explain what it would look like.”
LINZEY: “Well, I think it means thinking about civil disobedience differently than we’ve thought about it before. So it’s not just to make a moral or ethical statement; it’s actually aimed at stopping the project itself. And that means, I think, successive days. It means rotating people through. It means bringing people in from other places. It means filling up jails.” (emphasis added)
Linzey went on to suggest that the law isn’t really important here:
“I mean, our resistance has to ratchet up, the opposition has to ratchet up our stuff to a point where it’s actually actively interfering with these projects, because if you don’t do that and you rely entirely on the legal process and the legal process is so stacked against you in terms of what municipalities can and can’t do, that at that point you have no other option but to engage in that type of action.” (emphasis added)
Growing frustration on the part of anti-energy activists seems to be fueling (pun intended) a sense of urgency. We hope this amounts to nothing more than bravado, but hope that Colorado’s natural resource developers–our neighbors–stay out of harm’s way.
The Environmental Protection Agency? How about the Environmental Propaganda Agency–says the Government Accountability Office:
Yesterday the Government Accountability Office issued a report concluding that the Environmental Protection Agency (EPA) violated federal law in its use of social media to promote its controversial “WOTUS rule,” redefining the scope of the “waters of the United States” subject to federal regulation under the Clean Water Act. Specifically, the GAO concluded that the EPA violated express limits on the use of appropriations for indirect or grassroots lobbying, and that in doing so, the agency violated the Antideficiency Act.
According to the GAO, the EPA used various social media platforms, including Thunderclap, to develop support for its proposal to expand and clarify the scope of its own regulatory jurisdiction and combat opposition to the rule. The EPA also used social media communications to promote materials supporting the WOTUS rule by environmentalist advocacy groups, including materials that were clearly designed to oppose legislative efforts to limit or block the rule. The GAO labeled these efforts “covert propaganda.” The New York Times had previously documented some of the EPA’s actions.
Good legislation is often larded with bad–pork, paybacks, and wheeling-dealing that makes the whole thing a whole lot less palatable–and the proposed extension of the wind production tax credit and the investment tax credit for solar has the renewable industry singing the praises of the proposed lifting of the oil export ban:
Michael Zarin — head of external communications for Vestas — said via email that the company is “pleased” by the proposed extension.
“As currently structured, the extension and phase-out plan would give the industry the longer-term certainty that we’ve been seeking,” Zarin said. “Together with wind energy’s natural competitiveness against other power generation sources, the PTC extension agreement would help ensure a solid future for wind energy in the U.S.”
The solar industry’s investment tax credit, currently a 30 percent credit for commercial, residential and utility-scale solar power systems, also would be extended and phased down through 2022 under the proposal.
The credit, as proposed, would stay at 30 percent through 2019, and then fall to 26 percent in 2020. It would drop to 22 percent in 2021 and 10 percent in 2022. The bill also offers a commence-construction clause that would extend the credit to any project in development started before the end of 2021 and be finished before the end of 2023.
“We are delighted a five-year extension of the Investment Tax Credit has been included in the omnibus bill,” said Rebecca Cantwell, executive director of the Colorado Solar Energy Industries Association. “We worked hard to get it included, and are working hard to make sure it passes.”
Mining for a photo-op to discuss the fallout of the EPA’s Gold King Mine spill:
IDAHO SPRINGS – The first-ever congressional hearing inside a mine was held Monday, offering a dramatic image of the impact the Gold King Mine spill has had on policy talks.
The Subcommittee on Energy and Mineral Resources held its field hearing inside the Edgar Mine in Idaho Springs, where the panel discussed legislation aimed at training and recruiting engineers to work on mining reclamation efforts.
“This is weird,” said U.S. Rep. Rob Bishop, R-Utah, chairman of the House Committee on Natural Resources, who made his remarks while wearing a hard hat and looking up at rock formations inside the mine, which is used for training by the Colorado School of Mines.
Discussions around mining reform gained momentum after the August Gold King Mine spill, in which an estimated 3 million gallons of old mining sludge poured into the Animas River, turning it a mustard-yellow. The river tested for initial spikes in heavy metals.
Efforts to increase electricity rates in the southwest part of the state were sustained, as a measure to push back failed, with opponents of the rate hike calling the residential-focused increases “discrimination”:
An effort to reverse a decision last month to increase residential electric base rates failed at the La Plata Electric Association’s meeting on Tuesday with a split 6-6 vote.
In November, the board approved on a 6-5 vote a new rate structure that will cost local residents about $5.25 more per month on their electric bills, based on usage. Commercial and industrial users will see an estimated 4 percent decrease on next year’s bills.
However, Tuesday’s main point of contention was last month’s decision to raise the residential base rate from $20.50 to $21.50 a month, which had several board members concerned that the increase would “exacerbate inequality” in the region.
“If we continue to do this, we are harming and discriminating more and more against our members,” said board member Jeff Berman in reference to the 60 percent increase in base charges over the last five years. “I cannot support a base charge increase that exacerbates inequality and discrimination.”
September 3 Colorado Energy Cheat Sheet: Time running out for Colowyo Mine; Bennet, Hickenlooper concerned about EPA ozone rule; Animas River updates
Filed under: CDPHE, Environmental Protection Agency, Legislation, renewable energy, solar energy, wind energy
Colorado’s Colowyo Mine–and the entire northwest part of the state–face a final decision September 6, and the Denver Post editorial board notes the significance, concluding that the judge should rule in Colowyo’s favor, as the “economic health of northwestern Colorado depends on it”:
The clock runs out this weekend on a federal judge’s extraordinary order giving the Interior Department just 120 days to fix what he said were flaws in an environmental analysis of an eight-year-old expansion permit for the Colowyo coal mine in northwestern Colorado.
At the request of WildEarth Guardians, a group opposing all fossil fuel extraction in the West, Judge R. Brooke Jackson mandated the Office of Surface Mining Reclamation and Enforcement (OSMRE) take a closer look at “the direct and indirect environmental effects of the Colowyo mining plan revisions” and wrap it up by Sept. 6.
It’s unfortunate that Interior Secretary Sally Jewell decided against appealing Jackson’s ruling, but she has also said federal officials were “doing everything we can” to avoid a mine shutdown.
And she may be right. On Tuesday, OSMRE released a revised environmental assessment in what may be record time for such a document, as well as an official finding of no significant environmental impact. We hope it will be enough to satisfy the judge.
The Post says to find otherwise “would be a blow to common sense.”
A $200 million blow to Moffat and Rio Blanco counties, to more than 220 employees who would directly lose their jobs and hundreds of families, friends, neighbors and businesses that would suffer.
The Post also pointed to the absurdity of of reexamining the Colowyo mine plans, as burning coal is an expected outcome of mining coal:
But coal will remain a part of America’s energy portfolio for many years and it has to come from somewhere. And the existence of a mine presupposes the product will be used. As attorneys for Colowyo Coal Co. noted in a legal filing, “Combustion of the mined coal is a necessary and foreseeable consequence of granting a federal coal lease.”
None of that matters, however, to the anti-fossil fuel activists at WildEarth Guardians.
We’ll have an update next week.
Washington, D.C., Sept. 2 – Less than a week after U.S. Senator Michael Bennet (D-Colo.) warned that a plan to dramatically tighten the federal ozone standard “doesn’t make any sense” and is “not going to work,” Colorado Gov. John Hickenlooper (D) is also going public with his reservations. In short, Hickenlooper is questioning the Obama administration for proposing an ozone standard at levels “where you know you’re not going to be able to achieve it.”
In a TV interview with CBS Denver, Gov. Hickenlooper said he’s unconvinced that the U.S. Environmental Protection Agency (EPA) should tighten standard from 75 parts per billion (ppb) into the range of 65 to 70 ppb. Here are the governor’s full comments from CBS Denver’s Aug. 31 story:
“I’m still very concerned. … I’ve heard (from) both sides that there isn’t sufficiently clear evidence that this is a significant health hazard. Now I haven’t looked at that yet and our people are still looking at it…
“To set up a standard where you know you’re not going to be able to achieve it, and obviously we’re at a unique disadvantage because we’re a mile high. So when you’re at 5,000 feet your ozone challenges are significantly more difficult.”
Having both of Colorado’s top Democrats express even limited concern about the EPA’s plans is significant, and both Hickenlooper and Bennet, with caveats, appear not to be sold on the reductions projected by the agency. Both refer strongly to Colorado’s unique situation, and the West in general, with regard to background-level ozone and effect that would have on making any attainment of the new standards difficult, if not impossible, for many areas of the state, and not just the Front Range.
Video of Sen. Bennet last week, saying the EPA plan is “not going to work”:
Tony Cox, a member of the faculty of the University of Colorado School of Public Health and the editor in chief of the peer-reviewed journal Risk Analysis wrote an op-ed for the Wall Street Journal outlining the problematic health analysis instrumental to the EPA’s push for the ozone rule:
Fortunately, there is abundant historical data on ozone levels and asthma levels in U.S. cities and counties over the past 20 years, many of which have made great strides in reducing ambient levels of ozone by complying with existing regulations. It is easy to check whether adverse outcomes, from mortality rates to asthma rates, have decreased more where ozone levels have been reduced more. They have not. Even relatively large reductions in ozone, by 20% or more, have not been found to cause detectable reductions in deaths and illnesses from cardiovascular and respiratory illnesses, contrary to the EPA’s model-based predictions.
How the EPA and society proceed when confronted with a divergence between optimistic model-based predictions and practical reality will say much about what role, if any, we collectively want science and objective analysis to play in shaping crucial environmental and public-health regulations.
The cynical use of asthma patients to promote a pro-regulation political agenda that won’t actually help them undermines the credibility of regulatory science and damages the public interest.
A battle over wind turbines in eastern El Paso County between residents and county officials appears to have been concluded:
El Paso County attorneys and lawyers for disgruntled residents reached an agreement this week to end a months’ long lawsuit over a controversial wind farm, the county announced on Wednesday.
On Sept. 1, an El Paso County district court approved the mutual decision to dismiss the lawsuit with prejudice, a move that protects the El Paso County commissioners from being sued over their decision to approve the large wind farm project near Calhan. Tuesday’s court ruling ended months of legal back-and-forth between the county officials and bitter eastern county residents, many of whom vehemently oppose the project out of fear of compromised property values and health effects.
Despite the lawsuit, residents remained divided over the project. Many long-time ranchers in the area supported the wind farm, and told the commissioners that they were happy to see some economic vitality come back to the region. But other residents fought bitterly against the entire wind farm project, and still others opposed only the above-ground powerline. Members of the property rights coalition paid their own legal fees, held regular meetings with updates and even created anti-wind farm t-shirts to sell to members.
Another Senate Democrat has signaled his support for exporting U.S. oil — as long as it is part of a broader clean energy plan.
The declaration from Sen. Michael Bennet came during the Rocky Mountain Energy Summit, when the Coloradan was asked if he backed oil exports.
“In the context of being able to move us to a more secure energy environment in the United States (and) a cleaner energy environment in the United States, yes,” Bennet said.
A spokesman for Bennet said the senator believes a move to lift the 40-year-old ban on crude exports “would have to be part of a more comprehensive plan that includes steps to address climate change and give the country and the world a more sustainable energy future.”
Bennet’s comments make him the latest Senate Democrat to suggest he is open to oil exports — even if the support is predicated on other changes.
Another renewable company and recipient of government largesse is on deathwatch:
Abengoa, a renewable energy multinational company headquartered in Spain, has been a favorite of the Obama administration in getting federal tax money for clean energy projects.
Since 2009, Abengoa and its subsidiaries, according to estimates, have received $2.9 billion in grants and loan guarantees through the Department of Energy to undertake solar projects in California and Arizona — as well as the construction of a cellulosic ethanol plant in Kansas.
But in the space of less than a year, Abengoa’s financial health has become critical, leading investors to worry whether the company can survive.
A new tree census finds there are a lot more in the world than previously thought:
There are just over three trillion trees in the world, a figure that dwarfs previous estimates, according to the most comprehensive census yet of global forestation.
Using satellite imagery as well as ground-based measurements from around the world, a team led by researchers at Yale University created the first globally comprehensive map of tree density. Their findings were published in the journal Nature on Wednesday.
A previous study that drew on satellite imagery estimated that the total number of trees was around 400 billion. The new estimate of 3.04 trillion is multiple times that number, bringing the ratio of trees per person to 422 to 1.
While the density of foliage was surprisingly high overall, the researchers cautioned that global vegetation is still in decline. The number of trees on Earth has fallen by 46% since the beginning of human civilization, according to the report. The researchers said they believed the findings would provide a valuable baseline for future research on environment and ecosystems.
Animas River Updates
You can taste the trout again, say Colorado officials:
Colorado health officials said Wednesday trout from the Animas River are safe to eat even after being exposed to contaminants from a massive wastewater spill last month.
“Most fish tissue analyzed after the Gold King mine release showed metals below detectable levels,” the Colorado Department of Public Health and Environment said in a news release. “All results were below the risk threshold.”
“Because there is a potential for fish to concentrate metals in their tissue over time, the department and Colorado Parks and Wildlife will continue to monitor levels of metals in Animas River fish,” the release said. “New data will be analyzed and results reported when available.”
The hurdles for cleanup in areas like Gold King mine and the Animas River are steep:
DENVER – Despite cries for a focus on reclamation following the Gold King Mine spill, restoring thousands of inactive mines across Colorado and the nation may prove difficult, if not logistically impossible.
Ron Cohen, a professor of civil and environmental engineering at Colorado School of Mines, said the technology and funding is lacking to properly perform the reclamation work needed.
“The reality is, and my prediction is, that this is going to be a problem for a long, long time,” Cohen said. He has been briefing federal lawmakers on oversight following the Gold King disaster. “Is there political will in the federal government now to come up with more monies for cleanup? I don’t think that’s going to happen.”
There has been a refocus on reclamation in the wake of the Gold King incident, in which an error by an Environmental Protection Agency-contracted team on Aug. 5 sent an estimated 3 million gallons of orange old mining sludge into the Animas River. The water initially tested for spikes in heavy metals, including lead, arsenic, cadmium, aluminum and copper.
It isn’t the first time Colorado has seen its rivers turn orange because of spills from an old mining operation. Each time an incident occurred, the focus was shifted to reclamation, yet the pervasive problem lingers.
Part of the dilemma has to do with money. Estimates place national reclamation of inactive mines as high as $54 billion. Mining laws that govern the industry in the United States date back 143 years. The federal government is prohibited from collecting royalties on much of hard-rock mining, thereby leaving the coffers dry for reclamation.
Read the whole thing.
Notification of downstream officials and residents in the aftermath of the Animas River spill was late and, in some cases, not available to other states’ officials (namely New Mexico), as well as Native American tribal officials and others residing along the path of 3 million spilled gallons of toxic, metallic wastewater. A new system is now in place, according to the Associated Press:
DENVER — A massive wastewater spill from an old gold mine in Colorado has prompted state officials to expand the list of downstream users they will warn after such accidents.
Last month, Colorado health officials notified only agencies inside the state after 3 million gallons of water tainted with heavy metals gushed out of the Gold King mine near Silverton and eventually reached the Animas, San Juan and Colorado rivers in New Mexico and Utah.
In the future, the Colorado Department of Public Health and Environment will warn downstream states as well, department spokesman Mark Salley said.
Colorado officials didn’t know the magnitude of the spill when they issued their warnings, he said.
August 20 Colorado Energy Roundup: Poll shows Coloradans not impressed by Clean Power Plan, fracking ballot measures expected, #greenjobsfail, and EPA/Animas River saga continues
Filed under: Environmental Protection Agency, Legal, renewable energy, solar energy, wind energy
This week the Independence Institute released the results of poll concerning the Environmental Protection Agency’s Clean Power Plan and who Coloradans feel does a better job when it comes to guarding the state’s environmental quality–folks here prefer Colorado oversight to meddlesome DC regulations:
The poll was conducted August 9-10th and found those surveyed more likely to oppose the EPA’s controversial Clean Power Plan if the rule resulted in electricity bill hikes, 59 to 33 percent.
Fifty-five percent said they would oppose the plan if it meant spiking poverty rates in black and Hispanic communities by 23 and 26 percent, as a recent study by the National Black Chamber of Commerce concluded.
Respondents also opposed the plan when it came to the core environmental impacts projected by the agency—a 0.02 degrees Celsius reduction in global temperatures and no notable impact on carbon emissions. Fifty-one percent said the promised temperature reduction would make them more likely to oppose the finalized rule, while 58 percent said that the Clean Power Plan’s non-existent impact on carbon emissions would do the same.
You can read the rest of the topline results here.
Colorado’s registered voters put their trust in the state to manage the environment, and not federal regulators from the EPA or DC in general:
While Colorado’s Attorney General, Cynthia Coffman, has not weighed in on whether the state could join a multi-state lawsuit against the EPA over the Clean Power Plan (she has said it is on the table), a 53 to 37 percent majority favored the state joining at least 16 other states in the suit.
Nearly 6 in 10 said the state should wait to comply—not move forward as Governor John Hickenlooper has directed—on drawing up a state implementation plan for the Clean Power Plan.
Nearly half said that they would be more likely to support a plan if the state of Colorado determined the cost of compliance before that plan became law.
When it comes to environmental regulation and quality, Coloradans clearly preferred the regulators in Denver to those in Washington, D.C.
The State of Colorado does a better job regulating for a clean environment 37 to 5 percent over federal regulators. Twenty-seven percent said both state and federal agencies handled the job equally well, with nearly one in five saying that neither has done particularly well in this area.
How did the results breakdown along partisan and demographic lines?
Only Democrats (64 percent) and those earning between $100-$124K per year (51 percent) were more likely to support the EPA’s Clean Power Plan even if it meant an increase in electricity bills as a result of implementing the regulations. Overall, 59 percent of Coloradans were more likely to oppose the plan, with men and women showing no gender gap and nearly identical opposition to costly rate hikes.
A National Black Chamber of Commerce study found that poverty rates in black and Hispanic communities were likely to increase significantly—23 percent and 26 percent—under the Clean Power Plan. Fifty-five percent of Colorado voters said they would be more likely to oppose the federal regulations under those circumstances, with women edging out men (57 percent to 53 percent, respectively) in opposition. Majorities of Republicans, independents, and all age and income groups offered the same negative responses when it came to impacts on minority community poverty rates, as did the respondents when viewed across all seven congressional districts.
Democrats were still more likely to support the EPA’s carbon reduction plan by a slim 42 to 37 percent margin. The party was split, however, along gender lines, with Democratic women in opposition, 44 to 36 percent. Their male party counterparts gave the Clean Power Plan a large boost, saying 48 to 27 percent that they were more likely to back the EPA’s measure despite minority community concerns.
More results from the poll’s crosstabs can be perused here.
EPA Administrator Gina McCarthy even admitted explicitly that the Clean Power Plan would adversely harm minority and low-income families the hardest:
The chief environmental regulator in the United States had some blunt words of reality regarding the administration’s climate change regulations.
The Clean Power Plan that will require drastic cuts in 47 states’ carbon dioxide emissions – consequently shifting America’s energy economy away from affordable, reliable coal – will adversely impact poor, minority families the most.
When speaking about the higher energy prices caused by the administration’s climate regulations on power plants, Environmental Protection Agency Administrator Gina McCarthy said, “We know that low-income minority communities would be hardest hit.”
McCarthy downplayed that fact by saying any minimal higher prices would be offset by implementing energy efficiency measures that would save consumers money in the long run.
Cato shows how “carbon dioxide emissions” have turned into “carbon pollution” when it comes to EPA messaging over the years.
Another new EPA rule? Yep:
With the Environmental Protection Agency expected to release a rule this month on methane regulations, proponents are gearing up for a messaging war.
Federal regulators aim at reducing oil-and-gas methane emissions by as much as 45 percent by 2025. The idea is that companies can use new technology to better capture methane emissions from operations.
The EPA estimates that 7 million tons of methane are emitted every year, though environmentalists suggests that it could be much higher.
The issue is relevant in Southwest Colorado, where researchers identified a significant methane “hot spot” in the Four Corners. A team of scientists is currently investigating the cause of the concentration, which could stem from a combination of natural-gas exploration and natural occurrences.
But industry efforts have already cut methane emissions significantly, making the rule seemingly superfluous:
This is going to go down in the books as one of the most curious moves ever taken by the Obama EPA, not because the reduction of methane emissions is a bad idea, but because it’s already been taking place in gangbuster fashion. The Institute for Energy Research put out a statement as soon as the new proposal was announced which put the question in context.
“Since 2007, methane emissions fell by 35 percent from natural gas operations, while natural gas production increased by 22 percent. According to EPA, voluntary implementation of new technologies by the oil and natural gas industry is a major reason for the decline in emissions.”
And where is the IER getting these figures about reductions in emissions? Are they coming from some big oil loving, pro-drilling think tank? No. It’s data taken from the EPA’s own studies which were cited in generating these rules. But just in case any of them don’t read their own promotional material, here are the numbers in graph form.
Anti-frack is BAAAAAAAAAAAACK!!!
After failing to gather enough signatures last summer, Coloradans for Community Rights said Monday it will try again to get a statewide initiative giving communities control over oil and gas exploration on the ballot.
Spokesman Anthony Maine said the group will begin circulating petitions early next year to get the Colorado Community Rights Amendment to the state Constitution on the November 2016 ballot.
“This is about communities being allowed to decide for themselves,” Maine said at a press conference in Denver.
He said the oil and gas industry and their supporters are expected to pump in millions of dollars to fight the proposed amendment.
“This radical measure would allow city councilors and county commissioners to ban any business or industry for any reason even if those reasons violate federal or state law,” Karen Crummy, spokeswoman for Protect Colorado, said in a statement. Protect Colorado is an issue committee organized to fight anti-energy ballot measures.
Unlike other observers who felt that this issue might recede into next year’s political battles or be left up to the current court battles, it’s been clear to me from my work on this issue that activists are gearing up for the long game, announcing their efforts more than a year from the 2016 ballot, banking on possible favorable wins in a presidential cycle rather than the 2014 midterm. Many anti-fracking activists felt burned by Governor John Hickenlooper’s “compromise” last year that appeared to be an effort to provide fellow Democrats political cover in what was shaping up to be a costly and election-determining fight at the ballot box. Hickenlooper’s commission did not assuage the resentment of activists, Democrats lost a U.S. Senate seat, and the issues remained unresolved, just kicking the can down the road.
We’ve caught up to the can once again.
At the Independence Institute, we’ve been taking a look at the failed promises of “green” jobs since 2011, and a California initiative passed with the help of billionaire Tom Steyer appears to have fallen, uh, short of its job creation goals in the green sector–by about 90 percent:
The California ballot measure funded by billionaire environmentalist Tom Steyer that raised taxes on corporations to create clean energy jobs has generated less than a tenth of the promised jobs.
The Associated Press reported that the Clean Energy Jobs Act (Prop. 39) has only created 1,700 clean energy jobs, despite initial predictions it would generate more than 11,000 each year beginning in fiscal year 2013-14.
Prop. 39, which voters approved in 2012 after Steyer poured $30 million into the campaign supporting it, closed a tax loophole for multi-state corporations in order to fund energy efficient projects in schools that would in turn create clean energy jobs.
More than half of the $297 million given to schools for the projects has been funneled to consultants and energy auditors.
As we noted in late 2013, the current administration pushed for changes it hoped would bolster the long term outlook for wind energy by attempting to deal with one of the unfortunate tradeoffs of giant wind turbines–bird deaths:
But a move to extend the life of one renewable energy source–in this case, wind–by granting a six-fold extension to ‘takings’ permits issued to wind farms that allow the accidental killing of bald and golden eagles has united opponents normally at odds: Senator David Vitter (R-LA) and groups like the National Audubon Society and Natural Resources Defense Council.
A sampling, from Politico:
It’s baldly un-American, Vitter said Friday.
“Permits to kill eagles just seem unpatriotic, and 30 years is a long time for some of these projects to accrue a high death rate,” said the Louisiana senator, who is the top Republican on the Senate Environment and Public Works Committee and one of Congress’s most outspoken critics of wind.
Sounding a similar theme, National Audubon Society CEO David Yarnold said it’s “outrageous that the government is sanctioning the killing of America’s symbol, the bald eagle.” He indicated his group may sue the administration.
The rule also drew criticism from Frances Beinecke, president of the Natural Resources Defense Council, who said it “sets up a false choice that we intend to fight to reverse.”
“This rule could lead to many unnecessary deaths of eagles. And that’s a wrong-headed approach,” she said. “We can, and must, protect wildlife as we promote clean, renewable energy. The Fish and Wildlife Service missed an opportunity to issue a rule that would do just that.”
Secretary of the Interior Sally Jewell defended the rule change.
“Renewable energy development is vitally important to our nation’s future, but it has to be done in the right way. The changes in this permitting program will help the renewable energy industry and others develop projects that can operate in the longer term, while ensuring bald and golden eagles continue to thrive for future generations,” Jewell said.
Well, the so-called “takings” extension to 30 years has had its wings clipped by the court:
The express purpose of the 30-Year Rule was to facilitate the development of renewable wind energy, since renewable developers had voiced a need for longer-term permits to provide more certainty for project financing.
The Fish and Wildlife Service (FWS) issued the 30-Year Rule without preparing either an Environmental Assessment (EA) or an Environmental Impact Statement (EIS) under the National Environmental Policy Act (NEPA); instead, the FWS determined that the 30-Year Rule was categorically exempt. In overturning the rule, the court found that the FWS had not shown an adequate basis in the administrative record for its decision not to prepare an EIS or EA and therefore failed to comply with NEPA’s procedural requirements.
Finally, to the EPA induced toxic spill saga of the Animas River . . .
Congressman Scott Tipton (R-3rd CD) and colleagues are asking the EPA questions:
We remain completely unsatisfied with the delay in notifying the impacted communities and elected officials responsible for preparing and responding to a disaster such as this one.
What was the reason for the over 24 hour delay between the time of the incident and official notification and acknowledgment by your agency that a blowout had occurred?
Who in the EPA’s regional office was first notified of the blowout and when?
What steps has the EPA taken, or does it plan on taking in the very near future, to ensure that this type of delay in acknowledgment and notification of the appropriate parties does not happen again? What additional steps will the EPA take to create and implement an emergency response plan for EPA projects such as this?
That’s just a sample of a raft of questions from the House members.
Sen. Cory Gardner (R-CO) and a bipartisan group of colleagues sent their own questions to the EPA:
We, therefore, respectfully request the following be included in a report on the events surrounding the Gold King Mine spill:
1. Details on the work EPA was conducting at the Gold King Mine prior to the spill on August 5, 2015;
2. Details of the expertise of the EPA employees and contractors carrying out that work;
3. Criteria EPA would apply before approving a contractor for a similar cleanup performed by a private party and whether EPA applied the same criteria to itself;
4. EPA’s legal obligations and current policies and guidelines on reporting a release of a hazardous substance;
5. EPA’s legal obligations and current policies and guidelines on contacting tribal, state and local government agencies when the agency creates a release of a hazardous substance;
Again, just a sampling of what members of Congress–and the public both down in southwest Colorado, northern New Mexico, and Utah–would like to know, demanding a full accounting of the EPA spill as soon as possible.
New Mexico Governor Susana Martinez wasn’t drinking the EPA
tang koolaid, or its official responses so far, and is asking for her state to investigate as well:
Today, I ordered the New Mexico Environment Department to investigate the circumstances surrounding the EPA-caused toxic waste spill into the Animas River.
New Mexicans deserve answers as to why this catastrophe happened and why the EPA failed to notify us about it — the first we heard about it was from the Southern Ute Tribe nearly 24 hours later.
The EPA should not be held to a lower standard than they hold private citizens and businesses.
Colorado Attorney General Cynthia Coffman feels that she is not getting the whole picture either, and is still considering a lawsuit against the EPA for the spill:
The attorneys general of Colorado and Utah visited this still-festering site on a fact-finding mission Wednesday and left feeling the Environmental Protection Agency had not provided them with the whole picture.
“There’s a list, honestly,” Colorado Attorney General Cynthia Coffman said of her questions.
Coffman and her Utah counterpart, Attorney General Sean Reyes, are among a group that have said legal action against the EPA is being weighed after the agency’s Aug. 5 wastewater spill in the San Juan County mountains above Silverton.
The spill sent 3 million gallons of contaminated water surging into the Animas and San Juan rivers.
New Mexico’s attorney general said last week he is considering a lawsuit, and Navajo Nation leaders, whose community arguably has been most impacted by the disaster, said they will sue.
That lack of information–or, indeed, a coverup–has been the focus of much attention, and Colorado Peak Politics believes the EPA hasn’t been forthcoming from the beginning.
The inspector general for the Environmental Protection Agency announced on Monday that it is beginning an investigation into the agency’s role in triggering a massive toxic waste spill in southwest Colorado.
The IG alerted a number of senior EPA officials to the investigation in a memo released on Monday. “We will request documents, and interview relevant managers and staff in these locations and elsewhere as necessary,” the IG said.
The announcement comes amid controversy over EPA’s role in the spill. Agency chief Gina McCarthy admitted last week that EPA inspectors had triggered the incident while inspecting cleanup efforts at the Gold King Mine near Durango, Colo.
What are the cleanup costs estimated to be? The Daily Caller’s examination of potential burdens to the taxpayer due to EPA negligence are big:
The right-leaning American Action Forum estimates the total cost for responding to the Gold King Mine Spill could range from $338 million to $27.7 billion based on the federal government’s own cost-benefit analyses for cleaning up toxic waste and oil spills.
“There is no direct precedent for the toxic Animas River spill in Colorado and past regulatory actions from agencies, but we can learn from previous benefit-cost estimates,” writes Sam Batkins, AAF’s director of regulatory policy, adding that he “evaluated four recent regulations’ benefit figures to approximate the cost of the current spill in the Mountain West.”
That’s not good news, considering the mine owner’s allegations that the EPA has dumped toxic waste as far back as 2005, or that billions of gallons might be poised to spill in the future.
And that future is unclear due to what still lies beneath:
State and federal officials have offered assurances that the river is returning to “pre-event conditions,” but uncertainty remains over the residue that still lurks beneath the surface flow.
Those remaining metals on the river bottom still could affect aquatic life, agriculture and other aspects of life along the water in ways that are difficult to predict.
“The long-term effects are the concern that every time we have some sort of a high-water event, whether a good rain in the mountains or spring runoff next year, that’s going to stir up sediments and remobilize those contaminants that are sitting at the bottom of the river right now,” said Ty Churchwell, Colorado backcountry coordinator for Trout Unlimited.
CBS4Denver had the opportunity to get an early look at the mine itself, post-spill.
Perhaps the only thing quite as toxic as the spill itself is the messaging cover both local and regional environmental groups and pro-administration activists are providing the EPA, casting blame on private mismanagement and pollution and offering only an “aw shucks, only trying to help” defense of the agency:
Only the NRDC offered a response.
Earth Justice and several other environmental groups have made no public comment on the Animas River spill at all. In their public statements, neither the NRDC nor the Sierra Club pointed the finger at the EPA.
Though the Sierra Club did not respond to our inquiries, it did offer this public statement on August 11:
The Animas River was sadly already contaminated due to the legacy of toxic mining practices. The company that owns this mine has apparently allowed dangerous conditions to fester for years, and the mishandling of clean-up efforts by the EPA have only made a bad situation much worse. As we continue to learn what exactly happened, it’s time that the mine owners be held accountable for creating this toxic mess and we urge the EPA to act quickly to take all the steps necessary to ensure a tragedy like this does not happen again.
In a recent statement, the NRDC’s President Rhea Suh said only that the EPA “inadvertently triggered the mine waste spill last week,” while casting mining companies and Republicans in the House of Representatives as the responsible parties.
They probably wouldn’t like the Colorado Springs Gazette’s suggestion that mine clean up be privatized:
Critics have recoiled at the thought of putting the government’s environmental work into private hands.
No longer should they perceive or argue a level of federal competence that exceeds what the private sector might provide. The EPA unleashed a toxic sludge of arsenic, lead and other harmful toxins without bothering to warn people downstream, including tribal leaders and governors of neighboring states. They botched the inspection that led to the spill and bungled the response.
Gone with the Wind: IRS can’t measure effectiveness of $14 billion dollars in green energy subsidies
Filed under: New Energy Economy, preferred energy, renewable energy, solar energy, wind energy
A recent report from the Government Accountability Office (GAO) reveals that IRS tax subsidies to green energy operators have resulted in $15.1 billion in foregone revenue to the federal government, $13.7 billion of which was lost to renewable energy projects.
The GAO has sounded its concern that Congress cannot evaluate the effectiveness of Investment Tax Credit (ITC) or Production Tax Credit (PTC) programs funded by this money. Evaluation becomes difficult when “the total generating capacity [the projects] supported is unknown because the Internal Revenue Service (IRS) is not required to collect project level data from all taxpayers claiming the ITC or report the data it does collect, nor is it required to collect project-level data for the PTC.” So, as of now, any decisions made by Congress regarding the extension of the ITC or PTC are based on rough estimates, an environmental moral compass, or just how a representative is feeling that particular day.
What data has been reported suggests a certain government addiction to renewable energy subsides. From 2004 to 2013, around 2,000 renewable energy projects were built adding 69,000MW of generating capacity. This number, however, is dwarfed by the 157,000MW of generating capacity added by just the 500 traditional utility scale electricity generation projects built during the same time. For a tenth of the cost of renewable projects, traditional energy projects were able to generate more than double the energy.
In addition to green energy subsides, most states have implemented some form of a renewable portfolio standard (RPS) that requires a certain percentage of the electricity coming from retail service providers must be obtained from renewable sources. This artificial increase in demand along with subsides may be giving renewables like solar and wind a better chance than the technology in its current state deserves.
The GAO concludes that eliminating the ITC/PTC will almost certainly decrease the number of new renewable energy projects. Without these tax subsides green energy developer’s returns would decline and a rise in prices to compensate for the withdrawal of federal support would turn renewable energy into a luxury item.
Gina Larson is a Future Leaders intern and is currently a student at American University, majoring in International Relations.
Filed under: Abound Solar, Environmental Protection Agency, Legal, Legislation, preferred energy, renewable energy, solar energy, wind energy
More reaction from the ongoing Colowyo Mine saga in northwest Colorado, as Colorado Public Radio profiled residents from the community on what the possible mine closure would mean:
It’s been nearly two months since a judge required the federal government to take another look at a 2007 mining plan it approved for the Colowyo Mine outside Craig. Reaction in the small town of 9,000 was swift with much of the frustration directed at WildEarth Guardians, an environmental group that initiated the lawsuit.
Brent Malley moved from Phoenix, Arizona, to Craig 10 years ago to work at the mine, which supplies fuel to the nearby Tri-State Generation and Transmission Association power plant. Tri-State also owns Colowyo.
“It’s a much cleaner coal, low sulfur. I deal with that on a daily basis,” said Malley, who analyzes the coal at Colowyo. “There’s a bias against coal and I think it comes from pre-World War II where you saw really dirty conditions and miners getting hurt.”
Another resident, Rev. Jason Wunsch, called the actions against the Colowyo Mine–and the community–by WildEarth Guardians an “abuse.”
“The way it went about things through litigation and not through organic community dialogue I think was both an abuse to the public, but I think it will be a loss for authentic environmentalists,” Wunsch told CPR.
In a week filled with blockbuster Supreme Court decisions, the court’s ruling on the Environmental Protection Agency’s mercury rule flew somewhat under the radar, but the agency’s illegal rule had already done the damage intended, and even offered the EPA an “out” in future rulemaking:
A measure of the Environmental Protection Agency’s radicalism is that on Monday even this Supreme Court shot down one of its regulatory abuses. The agency’s extraconstitutional law-writing was too much even for the Court willing last week to tolerate the rewriting of laws for ObamaCare subsidies and housing discrimination.
In Michigan v. EPA, several states and industry groups challenged a 2012 EPA rule related to mercury emissions, which was really a pretext to force most coal-fired power plants to shut down as part of the Administration’s climate agenda. Though the rule was then the most expensive the federal government had ever issued, the EPA said it had no obligation even to consider costs when deciding whether it was “appropriate and necessary” to regulate.
“One would not say that it is even rational, never mind ‘appropriate,’ to impose billions of dollars in economic costs in return for a few dollars in health or environmental benefits,” Justice Antonin Scalia writes. “EPA’s interpretation precludes the agency from considering any type of cost—including, for instance, harms that regulation might do to human health or the environment.”
But imposing those economic costs and forcing the closure of coal-fired power plants in the process of the rule’s implementation had already occurred in between the 2012 promulgation of the rule and the Supreme Court’s finding this week. Too little, too late.
But while the initial reaction appeared to have a silver lining in forcing the EPA to consider costs, the agency got a reprieve from not only the minority who sided with the rule, but from the majority as well:
But here’s the, er, catch. Justice Scalia’s opinion says the agency can’t regulate without considering costs, but his decision also says the EPA can still decide what counts as a cost. Uh-oh.
And sure enough, Justice Elena Kagan’s dissent offers the EPA a soft-landing path for future law-writing. She does not say EPA can ignore costs altogether. But she and the three other liberals would have blessed the mercury rule because the EPA would allegedly scrutinize costs at some indeterminate point, eventually, down the line.
So while Michigan is a welcome rebuke to EPA arrogance, presumably the agency can still do most of what it wants as long as it claims to have considered costs. In any case, most of the utilities targeted by the EPA rule have already shut down those coal plants or spent billions to comply. They won the legal battle but lost the climate war.
In other words, the make-it-up-as-you-go agency’s agenda in bringing forth coal-killing regulations received the green light to conjure up any cost methodology it wanted to justify the rule, and to do so whenever it pleased.
That doesn’t bode well for future rule implementation of the EPA’s upcoming Clean Power Plan (carbon reduction) or ground-level ozone targets.
Sen. Mike Lee (R-UT), in an op-ed at Forbes, illustrated the EPA’s attitude toward the Supreme Court’s ruling, and their attitude in general when it comes to their role in the rulemaking process:
To make matters worse, the EPA sees no problem in a regulatory process that forces electricity companies to comply with an illegal regulation. “EPA is disappointed that the Court did not uphold the rule, but this rule was issued more than three years ago, investments have been made and most plants are already well on their way to compliance,” an EPA spokesperson said in a statement.
As long as the rule did what was intended, even when dinged by the Supreme Court, the agency’s mission was accomplished.
New Belgium Brewing appears to be doubling down on its environmental commitment even as it is still contending with pushback on its support of WildEarth Guardians, the activist group responsible for threatening the Colowyo Mine (see above) through its litigation:
The beer industry is booming, but water resources are becoming scarce while warmer temperatures and extreme weather events are hurting hop production.
“They do say whiskey’s for drinking and waters for fighting out here. And there’s a reason they say that,” said New Belgium’s Bryan Simpson.
Now, brewers are finding ways to integrate green business practices and they want others to do the same. Three Colorado breweries are joining a national call-to-action, signing the “Brewer’s Climate Declaration.”
The declaration signed by New Belgium, along with a couple dozen other companies, sees climate change as a threat to its basic ingredients–water and hops:
Warmer temperatures and extreme weather events are harming the production of hops, a critical ingredient of beer that grows primarily in the Pacific Northwest. Rising demand and lower yields have driven the price of hops up by more than 250 percent over the past decade. Clean water resources, another key ingredient, are also becoming scarcer in the West as a result of climate-related droughts and reduced snow pack.
That’s why leading breweries are finding innovative ways to integrate sustainability into their business practices and finding economic opportunity through investing in renewable energy, energy efficiency, water efficiency, waste recapture, and sustainable sourcing. To highlight the steps they are taking and issue a call to action to others, brewers are signing the Climate Declaration.
A Colorado thin-film solar supplier company goes belly-up due to flagging sales:
Faced with slumping sales in its solar inverter business, and no suitors willing to step in to buy it, Advanced Energy Industries, Inc., announced Monday it was getting out of the business.
The move will cost the company millions of dollars and likely hundreds of jobs.
The impact on jobs at the Fort Collins-based business is unknown, but the company said in a statement it expects to spend $260 million to $290 million to wind down the company, including $15 million in employee termination costs and $30 million to $45 million in severance and other expenses related to the decision.
As of Dec. 31, AE, which develops power and control technologies for thin-film manufacturing and solar-power generation, employed 1,583 people globally. Founded in Fort Collins in 1980, AE manufactures inverters in Fort Collins, Canada and China.
Abound Solar, a thin-film solar panel manufacturer, filed for bankruptcy in 2012 despite a $400 million loan guarantee from the Department of Energy. Tracking the declining global share of thin-film solar and difficulties seen in other companies in places like China, it’s easy to see that the once highly touted technology hasn’t caught fire the way proponents once envisioned.
Despite top rankings as a manufacturer of wind technology and employment of wind-related workers, Colorado must increase its wind energy efforts, according to a new report from Environmental Entrepreneurs:
But the state needs to do more, according to the report.
The state needs to implement the federal Clean Power Plan, which would cut carbon emissions from “dirty” power plants in Colorado by 35 percent in part by increasing clean renewable energy.
Secondly, the state needs “new policy direction … to expand the state’s renewable energy portfolio.”
“Colorado’s leaders need to take action with policy opportunities that are good for its economy and good for its environment,” the 16-page report concludes.
Filed under: Archive, Legislation, preferred energy, renewable energy, solar energy, wind energy
By Lexi Osborn
In the upcoming weeks, House Bill 1118 will be up for debate in the State, Veterans, and Military Affairs Committee. This bill eliminates the restrictions on the hydroelectricity and pumped hydroelectricity that can be counted as a “renewable energy resource” to meet Colorado’s renewable energy standard.
Currently, hydroelectricity is only counted towards the renewable energy standard if newly built facilities have a nameplate rating of 10 MW or less, or, if they are built before January 2005, with a nameplate rating of 30 MW or less. Fully including hydroelectricity would allow Coloradoans to take advantage of the 1169 megawatts of existing hydroelectric capacity. Eighty-two percent of that capacity is currently not considered “renewable” by Colorado standards because those facilities have a capacity of 30 MW and were built before 2005.
The Environmental Protection Agency (EPA) categorizes hydroelectricity as clean, renewable energy, and the Colorado Energy Office (CEO) determined that it produces air emissions on par with wind and solar. There is no justifiable environmental reason to keep these restrictions in place.
It may then come as a surprise that there are clean energy supporters who are actively fighting against this bill. Conservation Colorado, the Colorado Cleantech Industries Association, and the Distributed Wind Energy Association are all opposing the inclusion of hydroelectricity as a renewable energy resource despite the EPA’s evaluation. These organizations all claim to have commitments to developing and expanding clean energy in our society, making it hard to justify their opposition. So, why exclude hydroelectricity? Why impede clean energy if their missions are to protect the environment and limit carbon emissions?
Conservation Colorado has claimed that the current restrictions are necessary because the construction of large-scale hydroelectric facilities is damaging to the environment. But, the restrictions aren’t protecting the environment. The restrictions limit the ability of people to use already existing hydroelectric facilities to comply with the renewable energy standard. All these restrictions do is force Colorado to leave out hydroelectric sources in its renewable energy portfolio, giving preferential treatment to wind and solar industries. This ends up costing ratepayers millions of dollars in compliance costs.
The only real reason they want to exclude hydroelectricity is because it threatens their market share. Last year, an almost identical bill, HB 1138, was shot down because wind and solar advocates testified that their industries would struggle if they had to compete with hydropower, which already supplies 23 percent of the electricity to rural co-ops. They claimed the bill would negatively affect jobs in the solar and wind industries that benefit from the renewable energy mandate.
Their testimony makes it all crystal clear – they are not true champions of the environment and clean energy. If they were, they would be embracing the power and potential of hydroelectricity. Sadly, they only appear to be using legislation as protectionist measure, jealously guarding their market share.
Lexi Osborn is a Future Leaders intern. She graduated from Northwestern University with a degree in political science.
Growing transmission costs for wind-generated electricity have prompted Xcel Energy to seek approval for rate hikes to smaller utilities using Xcel’s transmission lines to reach their consumers:
Xcel wants the utilities to pay for its costs associated with having supplies of reserve power ready to go in case the wind suddenly dies, said Terri Eaton, Xcel’s director of federal regulatory and compliance efforts.
Currently, those costs are paid by Xcel’s business and residential customers, Eaton said.
If the transmission lines customers can supply their own back-up power supplies, they wouldn’t be charged under the proposed rates, she said.
Readily available, back-up power supplies are critical to keep the transmission grid in balance and avoid blackouts that can occur when a big source of power suddenly disappears, Eaton said.
Xcel’s hikes would hit rural cooperatives and other utilities should the Federal Energy Regulatory Commission approve the rate hike at the beginning of 2015.
But what, exactly, does Eaton mean when she refers to “reserve power ready to go in case the wind suddenly dies”?
“We’ve seen some dramatic wind fall-offs in really short periods of time,” Eaton said.
Xcel has already experienced such falls offs, when “several hundreds of megawatts of wind” drops dramatically — and swiftly — due to changes in the wind, she said.
“Sometimes the wind is just howling, and an hour later the wind has calmed — and it’s in those circumstances that we need to have reserves available to pick up the load,” Eaton said.
In such cases, backup power supplies typically come from natural gas-fueled power plants, she said.
The tariff proposed by Xcel would help cover the costs when the wind “suddenly dies.”
The intermittency of wind has been widely discussed, and no amount of forecasting or improved efficiency will spin a wind turbine’s blades if the wind isn’t blowing.
In 2012, a study examined wind generation in Illinois at the height of a summer heat wave, when energy demands rise to yearly highs. The author found that just 5 percent of installed wind capacity was available during that outbreak of record temperatures, and at times, “virtually nonexistent.”
Earlier this year, wind energy proponents touted the example provided in Texas–wind had saved the day. But a closer examination of the figures from the Electric Reliability Council of Texas (ERCOT) demonstrated that contrary to claims that wind had bailed out conventional sources of electricity by ensuring grid reliability, wind had actually fallen so substantially that Texas turned to other sources to meet the extra 1,000 megawatts of demand on January 6. Both scheduled and unscheduled plant closure elsewhere had left Texas with a gap during a record cold snap, a gap that wind was unable to fill.
As the Institute for Energy Research wrote in January, only 3.2 percent of the energy needs of the Texas grid operated by ERCOT came from wind, while 83 percent of Texas wind turbines “were unavailable during peak demand.”
ERCOT itself continues to rate its “wind power at 8.7 percent of its installed capacity” for 2014 during the periods of highest demands, which typically occur in mid-to-late summer. For nearly 12,000 megawatts of installed wind capacity, only 990 megawatts are considered reliable for forecasts computed by ERCOT for 2014. That’s like having the equivalent of 12 1,000 megawatt power plants built and only 1 online when summer energy demand spikes.
As a percentage, ERCOT figures wind to provide just 1.3 percent of the total amount of energy it needs this summer, rising to 2.2 percent by 2017 according to its own projections.
As for Colorado, under Senate Bill 252, rural cooperatives must reach 20 percent renewable energy by 2020.
Tri-State Generation and Transmission Association spokesman Lee Boughey acknowledged the rising costs of integrating ever-greater amounts of intermittent energy supplies like wind.
“As more intermittent resources are added in the region, we understand the need to address the higher costs of integrating and balancing power,” Boughey told the Denver Business Journal.
Those costs were highlighted in a March post that examined the integration of wind and other intermittent energy sources to the reliability of the grid operated by Public Service and regulated by the Public Utilities Commission (PUC), under the state’s preferred energy mandate:
The concern over infrastructure costs and the cost to ratepayers, as well as the challenge of incorporating ever-larger amounts of intermittent generation sources like solar and wind, is not a new topic at the PUC.
In June 2012 comments by PUC staff engineer Inez Dominguez indicated that off-peak load and wind generation in particular was “alarming.”
The integration of intermittent sources like wind would overwhelm the system, either with higher costs or decreased reliability. Bringing in wind and curtailing conventional, coal-fired generation during off-peak periods would result “in an economic penalty to the Public Service customers because more expensive wind generation would be supplying their load.”
Cutting off the wind, however, would also penalize ratepayers, as the “take or pay” agreements give wind first priority.
But the Public Service engineer also highlighted reliability concerns. “In its simplest terms as it concerns the customers, reliability deals with keeping the lights on. This reliability issue may occur when the wind suddenly stops blowing and a significant amount of wind generation is lost to the balancing authority,” Dominguez said.
“When this event happens, the balancing authority needs to replace the lost generation quickly enough to keep from tripping off the load. This means that the generation in reserve to cover such an event has to be quick enough in its response to cover the lost generation,” Dominguez continued.
For Colorado ratepayers, this backup generation comes from “gas fired combustion turbine generation reserves” that displace “more economic base load coal fired generation,” only adding to the cost, and “complexity” of the load balancing requirements.
According to Dominguez, these examples suggested a “flag that Public Service may have too much wind generation.”
This op-ed first appeared in the Greeley Tribune
By Michael Sandoval
Filed under: Legal, renewable energy, solar energy, wind energy
Valerie Richardson of The Colorado Observer provides background on HB 1113’s 8-5 defeat in committee, as well as other efforts to deal with last year’s SB 252 impact on rural Colorado.
Full text of testimony presented by the Independence Institute:
Testimony on behalf of
HB 1113 Electric Renewable Energy Standard Reduction, Room 0112
January 30, 2014
House Transportation and Energy Committee
Mr. Chairman and Members of the Committee,
My name is Michael Sandoval. I am an Energy Policy Analyst and Investigative Reporter for the Energy Policy Center at the Independence Institute.
Thank you for allowing me the opportunity to testify today on behalf of House Bill 1113.
At the Independence Institute, we are agnostic on energy resources. It is our strong belief that the choice of energy resources should come from the demands of the free market, and not from the preferences of policymakers, lobbyists, or special interest groups.
The goal of the Energy Policy Center is to promote a free market in energy production, where no protections, subsidies, or regulations result in energy winners and losers. We advocate that government remain neutral, which then encourages a level playing field. That is the best way to ensure that consumers reap the benefits of a healthy energy market – competition, lower prices, and more options.
HB 1113 affords utilities the flexibility they need to meet electricity demand in the most cost effective way. HB 1113 is an energy freedom bill that does not preclude utilities from incorporating wind, solar, or other renewable energy sources from the achieving a minimum percentage of electricity that electric service providers must generate. Rather it allows utilities to achieve that mix in a way that does not force them to rush to comply in coming years.
HB 1113 would eliminate the step-increases mandated by previous legislation that would negatively affect utilities’ ability to respond to customer demands and force ratepayers to contend with ever increasing costs of energy in Colorado.
The most recent numbers from the Energy Information Administration indicate where Colorado sits vis-à-vis its neighbors when it comes to the average retail price of electricity to the residential sector. As of October 2013, Colorado ranks 27th, with a residential retail cost that exceeds that of Kansas, New Mexico, Wyoming, Nebraska, Montana, Oklahoma, and Idaho.
When looking at the EIA’s census division of Mountain states, Colorado’s average retail price of electricity for residential customers is second behind only Nevada. When it comes to commercial and industrial electricity, Colorado’s average retail price is the highest in the Mountain region in both categories, for 2012 and 2013.
According to the Database of State Incentives for Renewables and Efficiency, in 2013 Colorado renewable portfolio standard of 30 percent by 2020 is the highest in the entire Rocky Mountain region, trailing only the west coast state of California.
The Independence Institute believes HB 1113 addresses concerns about the state’s market-skewing renewable portfolio standard’s impact upon utilities and ratepayers. The step-change increases in the state’s renewable energy mandate over the course of the next few years will result in higher costs for utilities and ratepayers alike.
These increased costs will likely result in job losses, higher costs for consumers, and a loss of competitiveness for Colorado businesses in comparison to neighboring states without or with lower renewable energy standards. HB 1113’s 15 percent figure would bring the state more in line with states throughout the Mountain region.
Again, aligning minimums between investor-owned utilities and cooperative electric associations will level the playing field that will keep electricity rates competitive, but will not prevent individual providers from exceeding those minimums with a market mix of conventional and renewable sources, including wind and solar, that best fits their own market profile and satisfies the needs of their customers.
In conclusion, HB 1113 gives utilities the flexibility to adjust power sources as needed and respond to needs of consumers—and not the demands of special interests—from 2014 and thereafter.
As I stated at the beginning it is the strong belief of the Independence Institute that the choice of energy resources should come from the demands of the free market, and not from the preferences of policymakers, lobbyists, or special interest groups and we believe that HB 1113 is consistent with that principle.
Filed under: Archive, Hydraulic Fracturing, renewable energy
Periodically, the Independence Institute’s Energy Policy Center will take a look at the good, the bad, and the ugly in energy stories from around the United States and abroad, and bring the best (and worst) of those stories to your attention.
1. Secretary of the Interior Sally Jewell may have violated Colorado Open Meetings Law under its sunshine statutes by shutting out members of the press while visiting Moffat County on Tuesday. The meeting in Colorado centered on the status of the sage-grouse, a species whose designation could affect energy projects in the northwest portion of the state:
As she was leaving, Leavitt Riley said she saw Jewell in a car in the parking lot and the driver-side door was open, so she approached Jewell “and she said the press was not allowed at this meeting,” Leavitt Riley recalled.
“I said, do you realize more than a dozen elected officials were in it? She said the tour was open to the press but this was a closed meeting” and then drove away, Leavitt Riley said.
She said the newspaper is pursuing the matter with the Colorado Press Association. No one with the U.S. Secretary of the Interior’s office was available for comment Tuesday night.
2. From Lachlan Markay at the Washington Free Beacon–a Politico column riddled with inaccuracies from anti-fracking activists:
A pair of prominent environmentalists penned a column Tuesday for Politico Magazine attacking hydraulic fracturing littered with dishonest and incorrect claims.
“If you calculate the greenhouse gas pollution emitted at every stage of the production process—drilling, piping, compression—it’s essentially just coal by another name,” McKibben and Tidwell wrote.
The claim is frequently sourced to Cornell scientists Robert Howarth and Anthony Ingraffea, who have found significantly higher life cycle emissions than are found in other studies.
Numerous government agencies, environmentalist groups, and academics have panned Howarth and Ingraffea’s work on the issue and produced their own studies showing relatively low life cycle emissions from natural gas.
“Their analysis is seriously flawed,” according to three Cornell colleagues, professors in the university’s departments of earth and atmospheric sciences and chemical and biological engineering.
3. Michael Bastasch at The Daily Caller highlights a report on the social benefits of fossil fuels:
Burning off carbon dioxide into the atmosphere to provide cheap electricity may have affected the climate, but the benefits of a carbonized economy far outweigh the costs, according to a new study.
The pro-coal American Coalition for Clean Coal Electricity (ACCCE) released a study showing that the benefits of carbonized fuel, like coal, to society are 50 to 500 times greater than the costs. Over the past two-and-a-half centuries increased fossil fuel energy production has helped more than double global life expectancy and increase global incomes 11-fold.
4. North Carolina State University issued a study finding that increasing the use of electric vehicles “is not an effective way to produce large emissions reductions”:
“We wanted to see how important EDVs may be over the next 40 years in terms of their ability to reduce emissions,” says Dr. Joseph DeCarolis, an assistant professor of civil, construction and environmental engineering at NC State and senior author of a paper on the new model. “We found that increasing the use of EDVs is not an effective way to produce large emissions reductions.”
The researchers ran 108 different scenarios in a powerful energy systems model to determine the impact of EDV use on emissions between now and 2050. They found that, even if EDVs made up 42 percent of passenger vehicles in the U.S., there would be little or no reduction in the emission of key air pollutants.