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 Tony's Newsletter

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 frank@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. 
 
For more information view the OEMC web site at www.state.co.us/oemc/events/cwade or call 1-800-632-6662 or 303-894-2383. 

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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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