Colorado Coalition for New Energy Technologies Update
31 May 2002
In This Edition:
· Welcome to New Coalition Members
· Colorado Legislative Roundup
· Slides From 2002 Legislative Briefing Series Available
· New Coalition Website Launched
· Farm Bill Advances Clean New Energy Technologies
· How Big is the Carbon Market—Really?
· DOE Seeks Public Input to Improve Voluntary Greenhouse Gas Reporting
· Environmental Summit on the West Examines Regional Environmental Issues
· Environmental Leaders in the U.S. Electric Utility Sector Provide Greater Shareholder Return
· Mountain Sports Media Announces 2002 Environmental Award Winners
· Industry Magazine Editor Says “Regional Renewable Solutions Might Trump National Mandate”
· Energy Sector in the Russian Far East
· Upcoming Events:
o Southwest Colorado BioEnergy Conference
o Fifth Annual Colorado Renewable Energy Conference
o Public Lecture by Denis Hayes
WELCOME TO NEW COALITION MEMBERS:
FPL Energy
Juno Beach, Florida
FPL Energy is one of the nation’s leading independent generators of electricity. Dedicated to generating clean energy, 80 percent of the company’s capacity is fueled by clean natural gas and renewable resources. FPL Energy is the nation’s largest generator of wind energy, and operates the largest solar fields in the world.
GeoSource Distributors
Parkville, Missouri
GeoSource is the exclusive distributor for WaterFurnace® GeoExchange™ heating, cooling and hot water systems in Colorado, New Mexico and Arizona. The company’s products are available through an extensive dealer network made up of the best HVAC and plumbing contractors in the industry. GeoExchange technology provides the most efficient means to heat, cool and produce hot water for homes, businesses, schools, and health care facilities. In fact, the EPA states that GeoExchange is the most energy efficient, environmentally clean and cost-effective space conditioning system available. GeoSource has over fifteen years experience in the GeoExchange industry and provides sales, marketing, technical and training support to contractors throughout its three-state territory.
Vail Resorts
Vail
Vail Resorts provides world-class resort experiences and access to public lands to over five million visitors per year. As a steward of public lands, Vail Resorts also promotes renewable energy, resource conservation, recycling, wildlife habitat preservation, and environmental education.
A complete list of members of the Colorado Coalition for New Energy Technologies is available on the coalition’s website at www.newenergytechnologies.org.
STATE LEGISLATIVE ROUNDUP
—RPS Loses in 11th Hour; SBC Killed; Net Metering Bill on Governor’s Desk
Legislation advancing a renewable energy portfolio standard (RPS) was passed by the Colorado House and Senate during the 2002 session of the General Assembly, but failed to be brought back for Senate concurrence at the last minute on the night of adjournment. A Senate bill establishing a system benefit charge (SBC), as well as a House bill containing an RPS, an SBC and a net metering provision failed earlier in the session. The one winner of the session, net metering legislation, passed both chambers and has been sent to Governor Bill Owens for his signature. Additionally, the Senate passed a non-binding resolution calling for greater energy conservation to reduce global warming.
Here is a brief summary of the bills dealing directly with energy efficiency and renewable energy from the 2002 session of the Colorado General Assembly:
SB 180: Renewable Portfolio Standard
Sponsored by Senator Terry Phillips (D-Louisville) and Representative Lola Spradley (R-Beulah), SB 180 would have implemented a state renewable portfolio standard (RPS) requiring that Xcel Energy provide or acquire 400 megawatts (MW) of generation from renewable energy sources, such as wind, solar and biomass (including presently existing renewable energy capacity), by 2005, increasing to 800 MW in 2010 and 1,500 MW in 2020. It contained a number of other provisions protecting consumers and the implementing utility (Xcel Energy) against cost increases. This bill passed both the Colorado Senate and House, but the Senate failed to act on concurrence (agreement with the House amendments) before it adjourned at midnight on 8 May. If this legislation had passed, Colorado would have been the 13th state in the country to adopt a renewable portfolio standard.
SB 186: System Benefit Charge
This legislation, introduced by State Senator Peggy Reeves (D-Fort Collins), would have established a system benefit charge (a small surcharge on all kilowatt-hours sold at the retail level in Colorado). Moneys collected in the Reeves bill would have funded energy efficiency programs, weatherization of low-income households, development and deployment of renewable energy technologies, and R&D activities that provide public benefits. SB 186 was killed in the Colorado Senate Business, Labor and Finance Committee on 2 April.
HB 1415: Net Metering
Introduced by Rep. Diane Hoppe (R-Sterling) and Sen. Jim Isgar (D-Hesperus), this bill standardizes net metering (i.e., utility purchase of customer-generated electricity from renewable energy sources) for the state and sets the utility purchase price for renewable-generated electricity at avoided cost. It applies to rural and cooperative utilities, excluding investor-owned and municipal utilities.
For a copy of HB 1415 as sent to Governor Owens for signature, visit:
HB 1202: RPS, SBC and Net Metering
State Representative Tom Plant’s (D-Nederland) comprehensive legislation that would have created a state renewable portfolio standard, along with a system benefit charge and net metering provisions was killed in the House Committee on Transportation & Energy on 7 February.
Senate Resolution 14: Recommending Energy Conservation to Reduce Global Warming
Ken Gordon (D-Denver), expresses “great concern that human activities that result in increased greenhouse gases and carbon in the atmosphere are affecting global weather patterns; and [c]hanges in global weather patterns may cause immense human suffering, potentially triggering famines, drought, and rising ocean levels.” The resolution continues by noting that “[c]onservation is an option that should receive more attention as a method of reducing dependence on foreign oil and decreasing the production of greenhouse gases; and [c]onservation will help reduce the pressure to drill in the Arctic National Wildlife Refuge. Finally, the resolution, which passed the Senate on a 23-11 vote on 8 May, recommends that the Bush Administration “place greater emphasis on conservation measures and less emphasis on drilling for oil in environmentally sensitive areas of the world.”
SLIDES FROM 2002 LEGISLATIVE BRIEFING SERIES AVAILABLE
The 2002 Legislative Briefing Series by member companies and friends of the Colorado Coalition for New Energy Technologies was very successful. Held during February, March and April, these briefings featured nine different presentations by:
· Agro Management Group of Colorado Springs
· E Star Colorado of Denver
· Natsource of Boulder
· Delta-Montrose Electric Association of Montrose
· Valley Heating & Air Conditioning of Brighton in conjunction with Geosource Distributors
· Colorado School of Mines of Golden
· National Renewable Energy Laboratory of Golden
· National Conference of State Legislatures of Denver
· Virtus Energy Research Associates of Austin, Texas
The Colorado Coalition for New Energy Technologies appreciates the efforts that each presenter made to prepare compelling presentations, rich with facts, charts, photos and other useful information. Now, in cooperation with the presenters, compact disks containing all nine presentations are available to all interested parties at the nominal cost of $5.00 to cover the cost of preparing and mailing these disks.
If you are interested in obtaining a CD with these presentations, please contact Craig Cox.
NEW COALITION WEBSITE LAUNCHED
The Colorado and Arizona Coalitions for New Energy Technologies have launched a new website at http://www.newenergytechnologies.org. Featuring news and information on member companies, legislative and regulatory developments, events and other materials of interest, we hope that this site will become a valuable resource for information on the clean new energy technology business communities in Colorado and Arizona.
Companies and organizations interested in establishing links from their websites to this new site are invited to contact Craig Cox.
See related article by Rod Franklin in Front Range TechBiz of 23 May 2002: “CCNET launches its new Web site.”
FARM BILL ADVANCES CLEAN NEW ENERGY TECHNOLOGIES
On 9 May, the U.S. Congress approved the 2002 Farm Bill, which includes a new Energy Title and important new clean energy development provisions in the Conservation and Rural Development Titles. Howard Learner of the Chicago-based Environmental Law and Policy Center (ELPC) notes that “this legislative support for renewable energy development and energy efficiency improvements is a win-win-win for farmers, rural economic development and the environment. The new Energy Title is now embedded in the overall infrastructure of the Farm Bill. These provisions are a terrific victory for clean energy and sustainable agriculture advocates.”
According to ELPC, there are $405 million of mandatory appropriations over six years in the Farm Bill’s new Energy Title. Half of that amount will fund new clean energy programs, including: direct financial assistance to farmers, ranchers, and rural small businesses for wind power and other renewable energy system purchases and for energy efficiency improvements ($115 million); appropriations for the Biomass Research and Development Act ($75 million); a new Federal biobased products purchasing preference program ($6 million); and a biodiesel fuel education program ($5 million). The other half will fund the existing Commodity Credit Corporation (“CCC”) subsidy program to increase production of ethanol and biodiesel.
In addition, amendments to the Rural Development Title make wind power, other renewable energy sources, and energy efficiency eligible for hundreds of millions of dollars of more funding. For example, farm- and ranch-based renewable energy projects are now eligible under the Value-Added Agricultural Product Market Development Grants program, which has received mandatory appropriations of $240 million over six years. Renewable energy projects also are eligible for rural development loans, and they have been identified as a priority in the Farm Bill Conference Committee Managers’ Statement.
Some of the other provisions of the Senate-passed Clean Energy Title remain in the Farm Bill as authorizations, without mandatory appropriations. The Conference Committee also amended the Conservation Title to allow biomass harvesting and wind turbine installations on Conservation Reserve Program land, and amended the Research Title to provide new emphasis on farm and ranch energy efficiency research.
[From information provided by ELPC]
HOW BIG IS THE CARBON MARKET—REALLY?
—New Report from Econergy International Examines Emerging Market for CO2
In a recently released report, coalition member Econergy International Corporation notes that “[s]ince the concept of a market for trading in carbon emissions reductions was introduced at the 1992 Rio Earth Summit, and found a structure with the 1997 Kyoto Protocol, a fledgling market has hobbled its way along, picking up momentum in fits and spurts; loosing speed as political forces and “market mechanism supporters” try and fail to push international emissions reduction commitments into force.”
Authors Amy Ellsworth and Phil Doyle note that “[t]hough not an especially liquid market, voluntary trading occurs fairly regularly...[t]he transactions involve a commodity that many find to be mystifying in its lack of substance.
Ellsworth and Doyle conclude that “even if Kyoto were never ratified, carbon trading markets would continue to move forward on a limited basis. And, if the rules of Kyoto are formalized and the Protocol is ratified, a market for carbon emission reductions could mature and stabilize very quickly.”
To review the full report, visit: http://www.eic-co.com/.
DOE SEEKS PUBLIC INPUT TO IMPROVE VOLUNTARY GREENHOUSE GAS REPORTING
The U.S. Department of Energy (DOE) is requesting public comments on ways to improve its voluntary reporting program to reduce greenhouse gas emissions. According to DOE, “the call for public input will help fulfill a directive from President Bush to reduce the greenhouse gas intensity of the U.S. economy by 18 percent in the next 10 years as announced in the clear skies initiative earlier this year.”
Through a Notice of Inquiry issued on 6 May, DOE requested comments on how to improve the voluntary reporting program that has, since 1995, collected data from US companies and citizens on their emissions of greenhouse gases and on their actions to reduce these emissions. DOE will consider the comments and then make recommendations to the President on how the current reporting program can be improved. The Department’s Energy Information Administration maintains the program containing this data and periodically makes the data available on the web and in published reports.
This Notice and other related information for interested stakeholders is available on the web at http://www.pi.energy.gov/enhancingGHGregistry/.
[From DOE news release]
ENVIRONMENTAL SUMMIT ON THE WEST EXAMINES REGIONAL ISSUES
—High-Level Participants Endorse Range of Energy Policy Proposals
The Western Governors’ Association held an “Environmental Summit on the West” in Salt Lake City on 24-26 April—the “Enlibra Summit II.”
Covering a number of topics of special interest to the West, the summit featured a number of western governors as well as Interior Secretary Gale Norton and EPA Administrator Christie Whitman. At the end of the conference, participants released a set of policy recommendations on energy issues, as well as other issues, including endangered species, water, open space, fire and air quality.
Energy policy recommendations included topics such as siting, coalbed methane, transmission issues and a number of proposals designed to advance renewable energy technologies throughout the western U.S. ranging from credit trading, federal land access and consideration of state renewable portfolio standards. A complete summary of the recommendations is available at http://www.westgov.org/wga/initiatives/enlibra/summit2_rec.ppt.
ENVIRONMENTAL LEADERS IN THE U.S. ELECTRIC UTILITY SECTOR PROVIDE GREATER SHAREHOLDER RETURN
—Investment Research Firm Give FPL Group and Pinnacle West Highest Ratings
Innovest Strategic Value Advisors, an internationally recognized independent investment research firm specializing in environmental finance and investment opportunities, released a new 118-page report on 30 May on the relative corporate environmental performance among 28 companies in the U.S. electric utility sector. The company’s analysis showed that environmental leaders, taken as a group, had a 10 percent average greater annual total shareholder return than that of the lower rated companies over the past three years. FPL Group, parent company of coalition member FPL Energy, and Pinnacle West Capital received the highest ratings in the sector.
Innovest’s report extensively analyzes key environmental issues having the potential to impact investor returns, including the Bush Administration’s Clear Skies Initiative, public health studies detailing premature deaths from coal plant emissions, existing Clean Air Act provisions that will require emission reductions of as much as 75% over the next ten years, state regulations requiring reductions in carbon dioxide emissions, nuclear waste disposal, and strategic profit opportunities related to distributed generation, renewable energy and other areas. In addition, the report provides summaries of each firm’s relative risk exposure, management strategy and systems, and environmentally favorable business activities.
For further information, visit the company’s website at http://www.innovestgroup.com.
[From company press release at http://biz.yahoo.com/prnews/020530/nyth103_1.html]
MOUNTAIN SPORTS MEDIA ANNOUNCES 2002 ENVIRONMENTAL AWARD WINNERS
—Coalition Members Aspen Skiing Company and Vail Resorts Receive Awards
Mountain Sports Media, a division of Boulder-based Time4 Media™, the world’s leading publisher of magazines and web sites for snow sports enthusiasts, announced on 25 May the winners of its 2002 Golden Eagle Awards, which were presented during annual convention of the National Ski Areas Association. These awards were established in 1993 to recognize and encourage the environmental achievements of ski areas and resorts.
Silver Eagle Awards for environmental excellence in North American ski resorts went to coalition members Aspen Skiing Company for excellence in water conservation and excellence in energy conservation) and Keystone Resort (part of Vail Resorts) for excellence in waste reduction & recycling.
The Award judges wrote “Aspen, which has now collected eight Silver Eagles and three Golden Eagles, isn’t resting on its laurels. It saved three million gallons of water by partially building halfpipes out of dirt rather than snow, introduced waterless urinals, embarked on a golf course redesign that will require only half the water and built new snowmaking reservoirs to reduce impact on streams. ‘Aspen makes its clients a part of the environmental push by reminding them of the consequences of their activities, such as room cleaning, towel and linen washing, and use of green toilets and shower heads,’ said the judges.”
Discussing Keystone, the judges noted that “Recycling is a way of life at Keystone: Its programs cover 25 different types of waste, from scrap metal to horse manure and from bamboo poles to tennis balls. The recycling efforts, begun in 1992, reach out to the community, to employees and to guests. They are closely monitored by the resort, which is now recycling an impressive 25 percent of its waste -- or 2.5 pounds per skier day. “Keystone has carefully analyzed its waste production to find more ways of trimming the fat than anyone else,” said the judges.
The Golden Eagle Award for overall environmental excellence was won this year by Telluride Ski & Golf Company, which Mountain Sports Media says has completed “what is arguably North America’s most environmentally sensitive ski area expansion.”
[From company press release at http://biz.yahoo.com/bw/020525/252011_1.html]
“REGIONAL RENEWABLE SOLUTIONS MIGHT TRUMP NATIONAL MANDATE”
—Editor of Industry Magazine Urges Consideration of State-based Policy Measures
Brian K. Schimmoller, Managing Editor of Power Generation magazine, writes in an editorial in the May 2002 issue that he is generally opposed to “government mandates that attempt to prescribe a prescribed generating mix.” However, Schimmoller goes on to say, “I must admit, however, that mandates can and have been effective,” citing the Texas renewable portfolio standard as a success story.
Schimmoller goes on to acknowledge strong support for renewable energy by legislators at the federal and state levels, but concludes that “mandates must be very carefully considered, and that, because of the patchwork nature of the U.S. power industry, regional solutions may be more useful.”
Schimmoller’s complete editorial can be read at http://pe.pennnet.com/Articles/Article_Display.cfm?Section=Articles&SubSection=CurrentIssue&ARTICLE_ID=144778&VERSION_NUM=1
ENERGY SECTOR IN THE RUSSIAN FAR EAST
—Opportunities for Exporters of New Energy Technologies
The Business Information Service for the Newly Independent States (BISNIS) is the U.S. Government’s main resource for trade and investment information on the Newly Independent States of the former Soviet Union. From time to time, it offers news of potential business opportunities for companies involved in energy efficiency and renewable energy technologies.
In a recent news item, BISNIS reports that “the current situation in the energy sector of the Russian Far East (RFE) is very unstable and shaky compared to Russia’s other regions, and requires major restructuring and development. This will involve introduction of new technologies (including environmentally-friendly and alternative types of energy production) and installation of new equipment. This report gives insight into the current state of the RFE’s energy industry, trends for its future development, and outlines business prospects for U.S. companies and firms interested in exporting new technologies, consulting services, and equipment.”
To review this report, visit (short registration required):
http://www.usatrade.gov/website/mrd.nsf/MRDurl/IMI_RUSSIA_REQ_ENERGY-SECTOR-IN-THE_0080BFC6
UPCOMING EVENTS
Southwest Colorado BioEnergy Conference: Growing Opportunities to Produce Fuel & Electricity from Crops, Ag By-Products & Other Biomass Materials
5 June 2002, Montrose
This one-day conference will feature a number of speakers and industry experts who will discuss how Colorado can meet some of its growing energy needs with biomass technologies in both the power generation and transportation sectors. This event is sponsored by Delta County, the U.S. Forest Service, Delta Area Development Inc. (DADI), Colorado State University Cooperative Extension, Colorado Governor’s Office of Energy Management & Conservation, Delta-Montrose Electric Association (DMEA) and the Colorado Coalition for New Energy Technologies.
For more information on this event, visit http://www.newenergytechnologies.org/colorado/events/default.htm.
Fifth Annual Colorado Renewable Energy Conference
28-30 June 2002, Colorado Springs
The Fifth Annual Colorado Renewable Energy Conference takes place this year in Colorado Springs at Colorado College, June 28th to 30th. The theme for this annual gathering of leaders, experts, students and friends in the field of sustainable design, energy efficiency, and renewable energy is “Energy Independence, Security, and Sustainability.”
The keynote speaker this year is the world-renowned sustainability expert Amory Lovins, founder of the Rocky Mountain Institute, an entrepreneurial, non-profit organization that fosters the efficient and restorative use of resources to create a more secure, prosperous, and life-sustaining world. Mr. Lovins will speak on “The Hydrogen Transition, Renewables, and Distributed Utilities.”
Other highlights of the conference include pre-conference workshops, vendor displays, technical and plenary sessions, exemplary building awards, tours, and social events. For conference updates and more information, visit the Colorado Renewable Energy Society website at www.cres-energy.org, or call 303-806-5317.
Public Lecture by Denis Hayes
14 July 2002, Denver
Denis Hayes, the second director of the National Renewable Energy Laboratory (at that time, the Solar Energy Research Institute), will present a public lecture as part of the NREL 25th anniversary events on the day before and after this Sunday event. His remarks will take place from 5:00 to 7:00 p.m. on 14 July at the Denver Zoo, 20th Avenue west of Colorado Boulevard in Denver.
Sponsors of this lecture include the Colorado Renewable Energy Society, the Sierra Club, the Colorado Public Interest Group, the Colorado Solar Energy Industries Association, the Colorado Environmental Coalition, the Colorado Coalition for New Energy Technologies and the Land and Water Fund of the Rockies.
For more information, contact Ron Larson at 303-526-9629 or ronallarson@qwest.net.
This newsletter is circulated to members of the Colorado Coalition for New Energy Technologies and other interested parties. Please let me know if you would like to be added to or removed from the distribution list.
In the future, if you would rather receive a short e-mailed notification about the availability of these newsletters on our coalition website (for example, you can read this newsletter at http://www.newenergytechnologies.org/colorado/news/2002-05-31.htm), instead of receiving the entire newsletter within the body of an e-mail message, just let me know.
Additional member-only updates are provided to coalition members as events warrant. If your business or non-profit organization is interested in coalition membership, please contact me for more information.
The website of the Colorado Coalition for New Energy Technologies at www.newenergytechnologies.org provides full information on our coalition’s activities, as well as copies of previous newsletters, links to coalition members and other sites of interest, a calendar of events and other features designed to be useful to the state’s clean-energy business community.
Please continue to keep in touch on any matters related to energy issues and let me know if I can provide any help or information to you.
Craig Cox
Executive Director
Colorado Coalition for New Energy Technologies
303-679-9331
The Colorado Coalition for New Energy Technologies brings together businesses and non-profit groups to encourage environmentally responsible economic growth through the efficient use of Colorado’s abundant and clean sources of energy.
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