Opinion: Moving Colorado ahead on addressing climate change
I just reviewed the 2019
Legislature’s bills related to our critical need to reduce emissions of
greenhouse gasses. I’m very pleased that finally we are really moving forward,
thanks in large part to our elected representatives from the Boulder area. But
the process is not complete, and some legislation is missing important pieces.
Here are some brief comments on some of the bills:
HB19-1261 — Climate Action Plan To Reduce Pollution
This far-reaching bill
requires an overall statewide reduction in 2025 greenhouse gas emissions by at
least 26 percent from 2005 levels, 2030 greenhouse gas emissions by at least 50
percent, and 2050 greenhouse gas emissions by at least 90 percent.
Additionally, it requires regulated investor-owned utilities (IOUs) to create
“clean energy plans” to meet an 80 percent reduction target for their emissions
by 2030, though the language is somewhat confusing re: actual performance. In
exchange, these utilities apparently get relief from future carbon taxes or
other restrictions on the 20 percent remaining emissions.
The bill also apparently
puts the state Air Quality Control Commission in charge of developing the
implementation plans. But producing such wide-ranging results is significantly
beyond the commission’s current level of responsibility and experience. For
example, these plans will need to cover not just the other types of electric
utilities (REAs and munis) but also transportation, buildings, industrial
processes, agriculture, ranching, fracking, etc. Electrifying transportation
and heating will require more clean energy, which will significantly increase
electricity demand and change the utilities’ plans. How costs are dealt with is
critical; leaving the “clean energy plans” up to the profit-driven companies
will just make the PUC’s quasi-judicial decision-making process even more
complicated and impenetrable. Also, a recent study shows that Colorado could
shut down all its coal plants by 2025 and save money. Doing this could
dramatically speed up the process of de-carbonization and so change the bill’s
timelines for the better, because the remaining gas generation is more easily
replaced by renewables.
HB19-1003 — Community Solar Gardens Modernization Act
I’m particularly interested
in this bill because I was instrumental in pushing the solar gardens idea in
Colorado. This bill increases the allowed size of solar gardens from 2 MW to 10
MW, thereby improving their economies of scale. It also allows customers from
anywhere in the utility’s service area to sign on, rather than just nearby
customers. Both these changes make solar gardens more attractive. But, for
example, the process for setting utility payments to the owners needs to become
transparent and prices predictable, so that garden owners can plan for and depend
on them. And locally owned distributed generation can improve system
reliability, so that should be taken into account.
SB19-077 — Permitting Utilities to Provide Electric
Vehicle Charging Stations
This bill both provides
permission and the standard regulatory framework to pay utilities for these
investments and the power they draw. But this bill does not address whether
local land use laws regulate station location and design. And it is unclear to
me why the regulated utilities get high risk-level rates of return on these
investments when there is no risk at all, since they get paid whether the
stations are used or not. Of course, this risk/reward question can legitimately
be asked about almost all of these utilities’ investments.
HB19-1037 — Colorado Energy Impact Assistance Act
As I discussed in my last
op-ed, this bill would force customers to pay back the regulated utilities 100
cents on every dollar invested in coal plants when the utility decides to shut
them down. That seems fundamentally unfair: Xcel stockholders are doing very
well (over 15 percent annualized return), and climate change was already an
issue when Xcel pushed the $1 billion coal-powered Comanche 3 in 2004 and the
$400 million Clean Air Clean Jobs Act coal plant refurbishments in 2010.
Again, I am thrilled our
state government is finally really addressing the issue of climate change on a
statewide level, especially given the appalling dismissal of this most
important global concern by many politicians in D.C.
But addressing climate change
fully, rapidly and at the least cost means paying attention to all the relevant
areas I mentioned above, and each of them demands specific knowledge and
experience. So to get complete and consistent legislation and high-quality
executive implementation will require including outside experts, both citizens
and professionals, to work with the insiders in an open and transparent
process. Therefore, I strongly suggest that Gov. Polis convene such an effort
and invite our many Colorado experts to participate, so we can achieve the best
possible results.