Faster renewable-energy push under way

When it comes to energy matters before the 2010 General Assembly, environmental groups are most concerned about expanding the state’s use of renewable energy and making it more affordable to more state residents, and ensuring that Colorado’s new rules governing oil and gas operations remain in place.

“The big-ticket item is renewable energy, and continuing the slow but steady march to expand Colorado’s New Energy Economy as we transition to a less fossil fuel-dependent future and help create new green jobs,” said Elise Jones, executive director of the Colorado Environmental Coalition.

“We also want to make sure there’s no rollback or weakening in the oil-and-gas rules that were passed last year,” she said.

Renewable energy — primarily wind- and solar-generated electricity — has been a hallmark of Gov. Bill Ritter’s administration.

In 2007, Ritter signed HB 1281, which called for the state’s largest utilities, including Xcel Energy Inc., to get 20 percent of their power supplies from renewable-energy resources by 2020 — up from the 10 percent mandate voters approved in 2004 with Amendment 37.

The bill also gave rural utilities and cooperatives a 10 percent goal by 2020. The bill was sponsored by Sen. Gail Schwartz, D-Snowmass Village; Rep. Jack Pommer, D-Boulder; and former Rep. Rob Witwer, R-Genesee.

Xcel (NYSE: XEL), Colorado’s largest utility, serving about 70 percent of the state’s population, has said it expects to meet the 20 percent goal before 2020, possibly by 2015, spokesman Mark Stutz said.

And with the 20 percent goal nearly in hand, Jones said it’s time to raise the bar on the use of renewable energy even higher.

The coalition is working with other environmental groups, the Ritter administration, utilities and other stakeholders on raising the goal higher — possibly as high as 30 percent, said Jones and Pam Kiely, legislative director for Environment Colorado, an advocacy group.

“We think it’s doable and appropriate to go higher,” Jones said. “At the high end, that could be up to 30 percent.

“You want to be feasible and bold at the same time. You want to stimulate the market, draw new wind and solar companies to Colorado and have them grow here in Colorado, because you’re setting the market. But the goal has to be achievable,” she said.

Stutz said Xcel is aware of the conversations, and waiting for details on how high the goal might be raised and what kind of renewable energy will be counted toward the goal.

“Thirty percent seems to be a level that more utilities nationwide seem to be becoming comfortable with, [although] it seems to be the upper limit” of how much renewable energy the grid system can handle, he said. “But a lot of the time, that figure includes hydroelectricity [from water].

“It’s not an unreasonable number, but we need to have more information about what might be included in that.”

At a Dec. 14 forum with legislative leaders held by the Colorado Press Association, Senate Minority Leader Josh Penry, R-Grand Junction, said he’d supported the 20 percent goal in 2007, but had reservations about raising the percentage again.

“We need to be thoughtful and make sure that the impact to consumers isn’t so much that the people can’t afford to pay for that,” he said.

• Also for the session, Rep. Joe Miklosi, D-Denver, said he plans to resurrect a bill he sponsored last year, which would create a statewide fund to help homeowners pay for renewable-energy and energy-efficiency devices.

He killed his bill, HB 1350, in the 2009 legislative session, after banks complained that fund loans would compete with their own.

Miklosi said he’s spent the summer and fall meeting with environmental groups and bankers to eliminate problems and concerns with the 2010 version of the bill. But his bottom line is to increase the availability of money for homeowners who want to buy solar-power or small-scale wind turbine systems, but don’t have the average $15,000 upfront cash that’s needed, he said.

Miklosi said his bill will propose a statewide special district that could sell bonds. The collateral would be the estimated 10,000 to 15,000 homes whose owners would voluntarily sign up to participate in the lending program. The loans would be repaid via a special property tax assessment on the home where the improvements are made, he said.

“It’s about job creation, increasing property values, helping green the state, and attracting future solar and wind manufacturing jobs,” Miklosi said. “We have such tremendous momentum that we are starting to become known as the renewable-energy capitol of the country.”

• The Colorado Oil & Gas Association (COGA) doesn’t plan to attack the state’s new rules governing oil and gas operations, said Jim Cole, who handles COGA’s government affairs work.

But the Ritter administration is talking with companies about using more of Colorado’s natural gas to produce electricity, or to fuel cars and trucks, Cole said.

Natural gas, when burned, emits less carbon dioxide than do coal and oil.

“Developing a local demand for our product is important,” Cole said. “We export 60 percent of our gas.”

Denver Business Journal
By: Cathy Proctor