RENEWING RENEWABLES UNLIKELY: Colorado legislators are taking advantage of the growing momentum against renewable energy mandates in both private and governmental sectors throughout the country.
By Marjorie Haun | Watchdog Arena
Colorado lawmakers are on the path to undo the strong affirmation bestowed upon the Environmental Protection Agency’s “Clean Power Plan” by Colorado Gov. John Hickenlooper’s signing of a 2013 renewable energy bill that increased the state’s rural renewable energy requirement from ten to 20 percent by the year 2020.
This bill, SB-252, designed purportedly to reduce carbon emissions from coal and natural gas-burning power plants, further widened the rift between urban (the Boulder/Denver Corridor) and rural (the rest of the state) Colorado.
Two years ago, Hickenlooper had the cooperation of a Democratic majority in the state Legislature, which represented mostly urban districts in the center of the state. Republican legislators, many of whom represented Colorado’s rural regions, were unable to overcome the Democrat-sponsored Rural Electricity bill, which eventually made its way to the governor’s desk. Consequentially, urban Colorado successfully used the power of government to force rural Colorado to pay for its pet carbon-reducing, renewable energy projects.
Since the passage of SB-252, which pitted environmental groups and renewable energy companies against rural electricity cooperatives, farmers and ranchers, the debate has grown more heated.
Colorado legislators have taken notice as the opposition to renewable energy mandates is gaining steam in both private and governmental sectors. State Sen. Ray Scott (R) from fossil fuel-rich Mesa County passed SB15-044 through the Republican-led Senate. SB15-044 would cap mandated renewable sources at 15 percent, instead of the 20-30 percent requirements in the existing law. SB15-046, run by Sen. Kevin Grantham (R), who also represents a rural Colorado district, expands the definition of “retail distribution” regarding solar energy sources.
It’s unlikely that a full repeal of the 2013 renewable mandates would make it through Colorado’s Democrat-led House of Representatives, but both existing Senate bills are supported by rural electric cooperatives, farmers and ranchers, and other organizations representing Colorado’s rural counties.
Solar panels at a power plant in the San Luis Valley of central Colorado.
Scott’s SB15-044 was originally heard in the Senate Agriculture, Natural Resources and Energy Committee on Jan. 29. Most of those who testified against the renewable mandates rollback were representatives of the renewable energy industry. Several organizations which benefit financially from the government mandates, including Solar Energy Industries Association, Interwest Energy Alliance, Colorado Cleantech Industries Association, and Western Resource Advocate, spoke in opposition to SB15-044.A representative from the Colorado Mining Association and the Associated Governments of Northwestern Colorado spoke in support of the bill.
The opposition for renewable energy mandates goes beyond the sour grapes from 2013. Rather, the experiences in Colorado, other states, and other countries show these mandates are costly to taxpayers and harmful to local economies and family farms. EPA’s standards are even tougher for rural Colorado than SB-252, and its plan would force rural cooperatives to show a 34 percent reduction in carbon emissions by traditional source power plants by 2030.
The conjoined mandates of increasing renewable energy sources while eliminating cheap and abundant fossil fuel-powered electricity plants have proven burdensome and unrealistic. Many in Colorado are starting to push back, and the following are a few points in the case against the Clean Power Plan:
Forms of Renewable Energy require massive taxpayer-funded subsidies in comparison to fossil fuel resources: A 2013 Forbes article revealed how per unit subsidies for renewable sources, (wind, solar) are 25 times greater than subsidies for fossil fuels.
The EPA lacks legal authority to implement its Clean Power Plan: In a 2014 memorandum from the Colorado Association of Commerce & Industry (CACI), the organization challenged the EPA’s standing on implementing new regulations in the State of Colorado. The memorandum reads, “…we believe the EPA lacks the legal authority to implement the Clean Power Plan (CPP) under Section 111(d) of the Clean Air Act. “ It continues, “CACI believes this rule creates unnecessary costs and burdens for electricity providers and those businesses that rely on affordable energy.”
Renewable energy mandates have severely harmed Colorado’s coal industry: Stuart Sanderson, the President of the Colorado Mining Association, in a statement regarding EPA Hearings on Regulations for Existing Sources, noted, “These regulations will threaten the livelihoods of the hard working men and women in Colorado’s coal industry, which pays average wages and benefits in excess of $116,000 annually. Equally appalling, the (renewable) rule will produce nothing in the way of claimed benefits to the environment.” Of the costs he said, “…hardest hit will be states like Colorado that rely heavily on (clean) coal for affordable electricity.”
Renewable energy mandates place excessive burdens on rural cooperatives, family farms and ranches: In a statement to the EPA, Colorado Rural Electric Association (CREA) indicated, “While CREA understands the basic objective of the plan, the requirement for a 34% reduction in carbon emissions from coal plants state wide by 2030 is overly aggressive and will result in excessive costs for our membership. CREA member cooperatives serve some of the lowest income counties in Colorado. Increased costs will disproportionately impact low-income consumers in our service territory.”
Renewable energy mandates negatively impact the reliability of electric service: The Western Electricity Coordinating Council (WECC) in its comments to the EPA said, “The potential reliability impacts associated with the transition from these traditional high-inertia resources (coal, oil and gas steam), and related loss of essential reliability services such as frequency and voltage support…need to be studied to ensure that proposed state compliance plans do not reduce the reliability of (electric services).”
Renewable energy cost caps on electric bills have failed: Colorado’s Clean Energy bill promised a 2 percent cap on energy rate increases, yet in 2014 Colorado’s electricity costs rose 4.5 percent, more than twice that of the rest of the country. The average cost per kWh in the state is nearly 12 cents, giving Colorado the highest residential electrical rates in the Mountain West.
Renewable energy costs impact farm operations by increasing energy costs for farmers, decreasing farm income, increasing retail and transportation costs of fertilizer and feed: In 2011 the USDA produced a publication titled, “Impacts on Higher Energy on Rural and Agricultural Economies.” In the abstract of the study, the USDA warned, “Higher energy-related production costs would generally lower agricultural output, raise prices of agricultural products, and reduce farm income…”
The parties for and against decreasing Colorado’s renewable mandate illustrate the same rift that existed in 2013, wherein green special interests located primarily in urban districts seek to force rural counties to pay for a product they can’t afford.
With data pouring in from recent years indicating that renewable mandates in Colorado and elsewhere are unrealistic, costly, and economically harmful, those most impacted will push for further roll-back of “carbon-reducing” government green energy initiatives.