Issue7

Tracking Public Policy for Colorado's Renewable Energy Harvest Network

From Colorado Working Landscapes, April 8, 2004, Volume 1, Issue 7

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.

Renewable Energy Bill Reenergized

Speaker Spradley breathed new life into renewable energy legislation that died in the Senate late last month. It takes 18 votes to pass legislation in the Senate but supporters were one vote short.

“Renewable energy is good for the economy, rural communities, and consumers,” said Spradley. “I just couldn’t walk away without giving it another try.”

She amended her wind co-op bill, Senate Bill 168, to include provisions for a renewable energy standard. The expanded bill passed out of the House Transportation and Energy committee on April 7^th on a 12-1 vote with no one testifying in opposition.

Next stop for SB 168 is a vote before the full House where the initial Renewable Energy Standard bill (HB 1273) passed by a comfortable margin. If the bill passes the House, where a vote is expected early next week, it will travel to the Senate where sponsor Terry Phillips (D-Louisville) will make a motion to concur with House amendments. With a favorable vote, the bill would to Governor Owens for his signature. If the Senate does not concur with house amendments, chances of adoption are slim.

SB 168 includes a compromise amendment negotiated by Senator Hillman, the Public Utilities Commission, electric utilities and bill sponsors. “The Hillman amendment clearly insures that renewable energy will be provided at no additional cost to any consumer,” Spradley explained. “If, after a full hearing, the PUC determines that proposed wind generation costs more than traditional fuels, compliance with the renewable energy standard will be delayed.”

“Capital needed to develop wind energy will go to states where political and economic conditions are favorable,” Spradley continued. “Fifteen states now have a renewable energy standard and that’s where the vast majority of wind development is occurring.”

Bill Wright, farmer and Baca County Commissioner, testified in favor of SB 168 by saying, “rural Colorado is dying. Forty-six percent of Baca County citizens are over 65 years of age. Without economic opportunity, we can’t keep our young people.”

Summary of Provisions

As amended, SB 168 includes the following provisions:

A declaration that it is state policy to encourage the formation of renewable energy generation facilities and thereby improve the financial stability of rural communities;
Authorizes formation of renewable energy cooperatives;
Specifies that electricity from cooperatives will only be sold at wholesale;
Authorizes issuance of revenue bonds for development of cooperatives;
Provides that Colorado's two investor-owned utilities (Xcel & Aquila) provide a minimum of 500 megawatts of capacity from renewable energy (including wind, biomass, solar, small hydro and geothermal) in Colorado by 2005, 900 MW by 2010, and 1,800 MW by 2020. Existing resources are eligible for inclusion;
Calls for acquisition of these resources under a “least-cost” acquisition plan (Hillman Amendment);
Exempts municipal utilities and rural electric cooperatives from the bill;
Provides a 150% credit for renewable energy generated in rural enterprise zones in the state; and
Establishes a market-based credit training system

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SB 168, The Rural Economic Stimulus Bill

Barbara Walker, Executive Director for Independent Bankers of Colorado presented the following statement in support of renewable energy and SB 168. It’s worth repeating here.

The Independent Bankers of Colorado see this bill as a comprehensive, economic stimulus bill that will provide a badly needed jump start for our rural communities. It will benefit a broad spectrum of people and businesses, with both short- and long-term benefits.

In the great scheme of the energy grid, this bill proposes very modest goals, but goals that can be leveraged by a diverse group of interests—from farmers and ranchers, to businesses and community banks on Main Street Colorado, to local governments and more.

Rural regions are urgently looking for ways to reinvent their economies—to spark new kinds of economic growth. The most successful rural regions have redefined themselves based on their competitive niche. Rural Colorado has a great niche with its wind resource. Drought resistant crops can flourish in rural Colorado to support a thriving niche in bio-fuels. Renewable technologies will attract younger populations back to rural Colorado to help revitalize those communities.

Colorado should not passively wait for this change to happen. Rural Colorado can no longer thrive on “business as usual.” Our rural communities are embracing renewable technologies, but they need your support to provide the spark to make it happen sooner than later. Colorado needs to be ahead of the curve in developing new competitive advantages for rural Colorado. This bill will do that.

We believe voting for this bill is an investment in Colorado’s future that will enjoy significant returns.

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Wind Development Strategies Advance

Agricultural, economic, environmental, governmental and industrial interests are examining formation of a Colorado Wind Working Group (WWG) to support community efforts to develop wind energy. "Rural leaders want to know how to get a project on the ground," declared the Farm Bureau's Tracee Bentley. "We need facilitated communication among several disciplines to help communities work through project development. We are all entering an important learning process."

The WWG proposes to focus on small wind (user installed systems), community owned small wind farms (generation of wholesale power), establishment of an information clearinghouse and website, and experts that can help resolve technical and financial issues. Negotiations over the next few weeks will determine an organizational structure and the availability of funding necessary to make the wind working group a reality.

On May 1, 2004, Xcel Energy will submit its Integrated Resource Plan (IRP) to the Colorado Public Utilities Commission. The Plan will specify upcoming electricity requirements and how those requirements are to be met. "The Plan will include some wind," said Karen Hyde, Power Purchase Director for the eleven states served by Xcel Energy. The Plan will include a 750 MW coal-fired generation facility in Pueblo. Members of the proposed Wind Working Group hope to become involved in the IRP process.

Small and community owned wind development is a new concept for most and access to quality information is critical. An important source of information comes from those already experienced with wind development. The Colorado Wind and Distributed Energy (CWADE) conference in Colorado Springs (April 13-14) is just this kind of opportunity. Hopefully, many subscribers to this newsletter will be able to attend and take advantage of the experience of experts and networking opportunities available at the conference. For more information about the CWADE Conference or to register visit www.state.co.us/oemc/events/cwade or call 303-894-2383 or 1-800-632-6662.

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2004 Annual Colorado Rural Conference, "Rural Communities: The Heart of Colorado" - July 13-15

The 2004 Annual Colorado Rural Conference, "Rural Communities: The Heart of Colorado", is right around the corner! The conference will be held July 13-15, 2004 at the Raintree Plaza Hotel in Longmont, Colorado. This two-day extravaganza is packed with educational seminars, workshops, networking opportunities, exhibits and entertainment.

This year the Colorado Rural Development Council (CRDC) has partnered with the Colorado Rural Health Center (CRHC) to host a collaborative event focused on a variety of broad rural issues. Over 300 participants from a variety of disciplines including healthcare, economic development, telecommunications, renewable energy and more will attend this event to learn about rural Colorado.

To sponsor the conference or purchase an exhibit booth, please call CRDC at 303-866-4918.

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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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