Tracking Public Policy
for Colorado's Renewable Energy Harvest Network
From Colorado Working Landscapes, March
12, 2004, Volume 1, Issue 6
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.
Critical Senate floor vote
on HB 1273 either Friday or Monday; Last minute call to Senators
requested.
Coalition organizations are asking their members to get a phone
message to their Senator as soon a possible (303-866-2316). "We
are going to need every vote we can get" said Farm Bureau lobbyist, Tracee
Bentley. Agriculture, banking, industry and environmental organizations are
asking senators to support the bill and two amendments, one by Senator Isgar and
another by Senator Hillman. "We are asking senators to resist any other
amendments and certainly don't want the bill to go back to committee" Bentley
continued.
The Isgar Amendment increases the amount of new and existing hydro that can
be counted toward the standard to 20 megawatts.
The Hillman Amendment states that if the Public Utilities Commission finds,
based upon an evidentiary hearing, that renewable resources are more expensive
than new resources, the Commission shall defer the requirement.
A statement of support for HB 1273 and an analysis of the Hillman Amendment
(see below) is being distributed to Senators by the following leading rural
organizations:
- Colorado Association of Conservation Districts
- Colorado Dairy Farmers
- Colorado Farm Bureau
- Colorado Livestock Association
- Colorado State Grange
- Colorado Wheat Administrative Committee
- Independent Bankers of Colorado
- Rocky Mountain Farmers Union
The statement describes renewable energy as "...an emerging issue bringing
new economic opportunities, constituencies, policy options and, unfortunately, a
fear of change. Adoption of HB 1273 (with the Isgar and Hillman amendments) will
signal acceptance of agricultural communities as a new partner in the
development of Colorado's energy and economic future."
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Compromise Amendment for HB
1273 negotiated with Bill Sponsors
Xcel
Energy and Governor Owens' staff secured support for the Hillman Amendment from
bill sponsors and then Coalition negotiators. The amendment replaces a
strict legislative mandate with delegation of authority to the Public
Utilities Commission and its least-cost planning process.
Despite reservations, members of the Colorado Renewable Energy Coalition
decided to accept the amendment. Ron Lehr, former chairman of the Colorado
Public Utilities Commission and Western Representative for the American Wind
Energy Association said, "We can support the amendment because the standard
is still achievable. As long as gas prices remain high and the federal
Production Tax Credit is reinstated we can expect low bids from wind. It's the
coalition you have created that has got us to this point and it's the coalition
and public opinion that will keep the PUC process honest."
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Analysis of the Hillman
Amendment
By John Covert, Colorado Working Landscapes
Executive Director
Senator
Hillman’s Amendment requires the PUC to select the least-cost source of new
electric generation even if it means deferring the renewable energy standards
contained in HB 1273. In affect, the decision to enforce a Renewable Energy
Standard is shifted from the Legislature to the PUC, a more restricted venue.
When direct cost comparisons
between alternative generation proposals are nearly equal, ancillary benefits
can be considered by the PUC.
Supporters
believe megawatt targets contained in the bill can be achieved and that rural
Colorado communities will receive substantial economic benefits. However, the
least-cost requirement of the Hillman Amendment overrides incentives in the
bill for renewable energy development to occur within
Colorado. Incentives for solar and
biomass development are effectively eliminated by the Amendment. Due to
transmission constraints, most wind development will occur in Colorado, at least
in the near term.
Consistent with the Amendment, Xcel Energy will
present data and cost analysis to the PUC for its least-cost determination. This
analysis will contain proprietary information and subjective judgment. Rural
Colorado will look to Xcel for a
good faith effort to achieve the goals set out in HB 1273. There are good
reasons to expect no less.
Renewable energy advocate, Jim Nichols who is a
former Minnesota State Senator and former Commissioner of Agriculture, spoke to
a joint meeting of the House and Senate Agriculture Committees on February 18,
2004 and to the Colorado Agricultural Outlook Forum the following day. He was
highly complementary of Xcel’s professionalism in implementing the Minnesota
Renewable Energy Standard and for their support for community ownership
strategies. Furthermore, Xcel has joined the Colorado Renewable Energy Coalition
in support of HB 1273. The Coalition will remain engaged with Xcel as the venue
for implementation of the Colorado Renewable Energy Standard shifts to the
PUC.
Rural
interests understand that renewable energy development requires a continuing
partnership with environmental, industrial and governmental interests. Adoption
of HB 1273 is only a first step in realizing economic benefits renewable energy
will deliver to rural communities.
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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.
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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
intact, both economically and ecologically, while respecting private property
rights and local control.
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