Tracking Public Policy
for Colorado's Renewable Energy Harvest Network
From Colorado Working Landscapes,
February 24, 2004, Volume 1, Issue 5
This newsletter supports the Colorado
Renewable Energy Coalition's Rural Initiative by bringing information to rural
constituencies during Colorado's 2004 Legislative Session. If you
would like to be added to the distribution list or taken off please send an
email to mailto:frankt@workinglandscapes.com.
Minnesota expert energizes movement toward
renewable energy cooperatives and adoption of the Renewable Energy Standard (HB
1273).
"The Minnesota Renewable Energy Standard is the
best public policy decision we have ever made," claimed Jim Nichols, a former
state senator and commissioner of agriculture. He spoke to nearly 400
persons attending the February 19th Colorado Agricultural Outlook Forum by
highlighting the Minnesota experience since adopting a renewable energy standard
10 years ago. Since then, 500 wind turbines have been constructed with a
rural investment of $500 million without an increase in electric
rates.
"Rural Colorado has built a powerful coalition
that we didn't have in Minnesota," Nichols continued, "but your efforts will
only pay off if you can persuade the Legislature to adopt HB 1273." The
legislation would create a market within a utility industry that has been slow
to embrace renewable energy. Xcel Energy has endorsed HB 1273 while
the Colorado Rural Electric Association remains opposed.
Minnesota is a national leader in the
development of wind cooperatives under the leadership of Nichols. He
detailed his experience during the Colorado Agricultural Outlook Forum and to
members of an emerging Task Force (see following story).
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RMFU forming a
Renewable Cooperative Development Task Force to support locally owned
energy projects.
Farmers are very familiar with the
idea of marketing value-added products to consumers...but not at the speed
of light. And yet, that is exactly what happens with "combines in the
sky," as Jim Nichols likes to call the wind turbines on his Minnesota
farm. The 1.5 MW turbine he and his brother financed and operate add
value to their local wind resource and distribute energy to 3 million electric
customers at the speed of light. They have a 25-year agreement with
Xcel Energy to purchase the power and expect to receive $30,000 net income
per year for the first 20 years and over $100,000 annually after that.
Nichols contrasted his project with landowners that host wind turbines in
exchange for lease payments. "Income is less but so is the investment in time,
money and risk," Nichols said.
Nichols believes Colorado wind
conditions and energy prices are similar to those in Minnesota. "Step one
is to secure a renewable energy market with the adoption of HB 1273"
Nichols advised. "With that law in place, you can secure a power purchase
agreement. Then you need to work on access (transmission) issues." He
was consulting with a diverse group of rural leaders, energy
executives, financial experts and government officials on steps necessary to
secure local ownership of wind farms. The Wray community in Yuma
County is actively investigating local ownership options while other areas
represented in the meeting (Kit Carson, Lincoln, Phillips, and Baca Counties)
are just beginning their investigation.
Over 20 individuals attending the meeting
agreed to work with the Rocky Mountain Farmers Union Cooperative Development
Center to create business models tailored to the needs of individual
communities. Karen Hyde, Director of Purchased Power for Xcel and Ron
Lehr, Western Representative for the American Wind Energy Association offered
their support to the group. Participants were encouraged to attend the
Colorado Wind and Distributed Energy Conference on April 13-14 (see details
below) to further understanding of project development. For
information on Task Force activities, contact John Covert at SaveAgLand@aol.com or by phone at 303-399-4456.
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Renewable
Energy Cooperatives Bill (SB 168) passes Senate while
the Renewable Energy Standard Bill (HB 1273) moves from the House to
the Senate Local Government Committee.
With a vote of 22-10 SB 168 concerning
renewable energy cooperatives passed the Senate with three
amendments on Wednesday, February 18. The official vote tally can be
viewed at the end of this Newsletter. The bill now moves to the House
where it will be sponsored by Speaker Spradley.
HB 1273 concerning a Renewable Energy
Standard will be heard in the Senate Local Government Committee on Tuesday
afternoon, February 24th. Committee adoption appears likely according to
Tracee Bentley who is lobbying the issue for the Colorado Farm Bureau. "The
real test will come when the bill reaches the Senate floor. It would be
great if we could pass the bill without amendment but I know of at least
three amendments that are in the wings."
For more information on these bills click
on the following links: SB 168 or HB 1273.
_____________________________________
Joint House and Senate
Agriculture Committees hear appeal by the Colorado Farm Bureau and Rocky
Mountain Farmers Union
"When we look at what renewable energy can do
for the rural communities we see it as a great economic development factor,"
John Stencel, President of Rocky Mountain Farmer's Union, stated early last
Wednesday morning before the Joint Agriculture Committee. He was joined in
presenting information to the Committee by Ray Christensen, Executive Vice
President Colorado Farm Bureau; Hap Boyd, General Electric Wind; and Jim
Nichols, from Lincoln County, Minnesota who is a
farmer, wind developer and also a former Minnesota state Senator and
Agriculture Commissioner.
Christensen began
by affirming that the Colorado Farm Bureau and the Farmers Union
have formed a coalition with a number of rural organizations in support
of renewable energy legislation. He went onto say, "Renewable energy
is an emerging issue. It imposes some new public policy thoughts for a
number of you in here that represent various areas of the state where
we have our natural resources - our coal, oil and gas resources around
the state. Many of you represent those constituencies, but you also
represent the rural areas of the state and agriculture which puts you in a
decision making situation about what are some opportunities - what are some
things we can do for the rural areas of the state?"
Both Christensen and Hap
Boyd, GE Wind Energy (developer of Lamar Wind Project), provided a summary
of the economic impact of the 162 Megawatt Lamar Wind Project in
Prowers County.
-
It will provide annual royalties to
landowners of over $350,000
-
300 installation jobs and 20 permanent
full-time jobs have been created
-
Increase county tax base by
29%
-
New county revenues per year of
$764,000
-
$916,000 per year for the school
districts general fund
-
$203,000 for the bond fund
-
$189,000 to the Prowers County Medical
Center
-
$23 million to the local county
over the life of the project
Jim Nichols provided the committee with an
overview of Minnesota's experience with wind projects and that
state's renewable energy standard. Following the meeting Nichols met
individually with Committee members and several key senators.
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Register Now for the
Colorado Wind & Distributed Energy: Renewables for Rural Prosperity
Conference 2004
April 13 & 14 - The Doubletree Hotel Colorado
Springs - World Arena
The Governor's Office of Energy Management and
Conservation (OEMC) along with the U.S. Department of Energy's Wind Powering
America is hosting its second biennial conference on wind and other distributed
energy technologies. Other primary sponsors include the Western Area
Power Administration and Holy Cross Electric. Case studies and discussions
will help educate farmers, ranchers, Colorado citizens, corporate
leaders, municipalities and rural electric cooperatives about the
economic and environmental benefits of utilizing distributed energy
sources.
Secretary of Energy Spencer Abraham, Colorado Governor
Bill Owens, and Colorado Springs Mayor Lionel Rivera, have been invited to
kick off the conference on Tuesday morning. The agenda for Tuesday, April
13, will focus on Wind Energy. Experts from across the country will
provide a step-by-step "how to" guide and tools for successful wind project
developments including public ownership, local equity, and public-private
partnerships.
Wednesday's event, April 14, will feature Distributed Generation
topics including creating power from forest thinning, hydrogen projects,
distributed generation devices (e.g. fuel cells, microturbines, Stirling
Engines), and anaerobic digestion technology.
The conference is open to the general public at a cost of
$85 for advanced registration, and $95 after March 22.
__________________________________________
Colorado Working
Landscapes (CWL) is a landowner-driven public policy forum seeking to build
communication bridges between divergent interest groups while striving for
win-win solutions. Our goal is to keep Colorado's agricultural landscapes
in tact, both economically and ecologically, while respecting private property
rights and local control.
__________________________________________
Recorded Vote of SB04-168 (February 18, 2004): Authorizing
the creation of renewable energy cooperatives
Yes 22
No 10
Excused 3
Anderson Y
Arnold Y
Cairns N
Chlouber E
Dyer N
Entz N
Evans N
Fitz-Gerald Y
Gordon Y
Groff Y
Grossman Y
Hagedorn Y
Hanna Y
Hillman Y
Isgar Y
Johnson Y
Jones Y
Keller Y
Kester Y
Lamborn N
May N
McElhany Y
Nichol N
Owen N
Phillips Y
Reeves Y
Sandoval Y
Takis Y
Tapia Y
Taylor N
Teck N
Tupa Y
Viega E
Windels Y
Mr. President
E