Both as a candidate and
as Colorado's new governor, Jared Polis pushed the goal of producing
100 percent of Colorado's power by 2040.
That commitment, he said in his
State of the State address
Jan. 10, "is not just about climate change. It’s about saving money for
consumers with cheaper energy, and it’s about making sure the
good-paying green jobs of the future are created right here in
Colorado."
A week later, Polis
issued an executive order
aimed at putting more electric and zero-emission vehicles on the
state's roads. He created a working group involving state agencies to
promote electric vehicles and called on automakers to sell more electric
vehicles in the state each year.
"In the absence of national
leadership, states like Colorado, along with local governments and
private and public companies, are leading the way on climate," Polis
said at a news conference announcing his order.
But if Polis’
order on vehicles was the low-hanging fruit of his energy agenda, one
possible next step – new state caps on carbon emissions – might just be
forbidden fruit, say some GOP lawmakers and even members of the
conservation community.
Others see a carbon-cap law as the next logical step to combat climate change in Colorado.
“Our
top priority is nationally-leading climate policy like capping carbon
pollution. We just don’t have time to waste, so that's our top
priority,” said Kelly Nordini, executive director of Conservation
Colorado. “The state needs to put those carbon-reduction targets in law …
to get in line with the science and be sure that we are doing our part
to avoid the worst of the climate-change impacts.”
But Republican state Sen. Bob Rankin, who recently took over the fossil-fuel-rich Northwest Colorado seat
previously held by Randy Baumgardner, warns against the economic pitfalls of moving too fast to phase out coal and natural gas.
Colorado, after all, is a state where the
U.S. Energy Information Administration reports
fossil fuels make up a combined 78.2 percent of the electricity mix.
Wind and solar currently contribute a combined 18.28 percent of the
state’s electricity.
“I believe that an overly aggressive,
politically motivated and unrealistic plan for the complete phaseout of
fossil fuels will be devastating to many of my constituents,” said the
Carbondale Republican, who now represents coal and gas counties such as
Moffat, Routt, Garfield and Rio Blanco.
“Is it possible to develop
a convincing plan, with cost and time parameters, so that our
hard-working miners and oil and gas industry folks could continue to
have their own plans for security for their families? If the new
governor wants to push this agenda, I'll be asking for a realistic road
map,” Rankin added. “Let's see if such a plan is even achievable.”
'Designed to be proactive'
Democratic
state Rep. Chris Hansen, whose district encompasses east Denver,
referenced a recently released analysis by Vibrant Clean Energy called
the
“Colorado Coal Retirement Study”
that concludes the state could save more than $2.5 billion through 2040
by retiring its fleet of coal-fired power plants, while simultaneously
increasing electric sector jobs and eliminating 510 metric tons of
emissions.
“The good news in electricity is that wind and solar
are way cheaper than the alternatives right now and the price of
batteries is falling dramatically, and so yeah, we can do this
transition and simultaneously save ratepayers money,” Hansen said.
“These transitions are going to lead to significant consumer savings
over time. Our job as the legislature is to help manage that, do it in a
very smart way, and that’s what I am excited about working with the
governor on.”
Hansen has already submitted a bill in the state legislature called the Colorado Energy Impact Assistance Act
(HB 1037) that would offer job training and financial support to communities impacted by the shutdown of local coal-fired power plants.
A
similar bill passed the Democratic-controlled House last year but
couldn’t get out of the Republican-controlled Senate – a chamber now
controlled by Dems.
The bill would create a ratepayer-backed
bonding mechanism that would allow publicly owned utilities to shut down
obsolete power plants without exposing those ratepayers to what is
essentially a 7 percent mortgage on those so-called “stranded assets.”
Refinancing
that liability at a sub 3-percent AAA bond rate would save ratepayers
money, and a portion of that money would then be dedicated to job
training and alleviating the shock to communities that lose one of their
biggest sources of local property taxes, Hansen said.
“The
overall national trend is that we have lots of old power assets in the
portfolio around the country, and historically we've done a really poor
job of anticipating problems created by the transition,” Hansen said.
“So this is really a bill designed to be proactive, anticipate those
issues and make sure that we've got the resources available to help the
workers in the towns.”
Jim Alexee, director of the Rocky Mountain
Chapter of the Sierra Club, lauds Hansen’s approach and supports swift
passage of the bill.
“You issue the bonds, you allow [Xcel Energy
and other utilities] to make money, but you also create savings because
they now pay a lower cost of debt,” Alexee said. “And with those extra
savings you can actually provide financial assistance to communities
that are going to be directly impacted by these coal retirements. So
it's an awesome tool.”
Alexee does not think a carbon-cap bill is
the way to go, and he anticipates Polis will head in a different
direction now that he’s addressed the electric-vehicle piece of his
agenda.
(Update, Jan. 29: Alexee says the Sierra Club now believes
that “capping carbon pollution is essential and must be part of a
national-leading climate policy portfolio,” in addition to 100
renewables and securitization.)
“I think Gov. Polis wants to
do something ambitious and bold to get to 100 percent renewable energy,”
Alexee said. “He wants to do something that's going to create
good-paying jobs for Coloradans. He wants to support communities that
are reliant on fossil fuels to make sure that a rising tide lifts all
boats, and he wants to do some forward-thinking policies on
transportation.”
Democratic state Rep. Dylan Roberts, an Eagle
resident whose two-country district includes coal mining and power
generation in Routt County, says that in the next few weeks he’s working
with other lawmakers on climate-change legislation, but he declined to
offer specifics.
Roberts feels the Polis order to facilitate
previous Gov. John Hickenlooper’s goal of nearly 1 million electric
vehicles on Colorado’s roads by 2030 will boost the move to 100-percent
renewable power.
“I am glad to see the new governor prioritize the
issue of our time and generation, climate change, in his first
executive order,” Roberts said. “Making electric vehicles more
accessible to more Coloradans will boost the ongoing transition to
cleaner fuels and more efficient vehicles. This kind of action also
incentivizes the modernization of our electrical grid to accommodate the
increased demand for clean energy.”
Utilities weigh in
To
some degree that’s a sentiment shared by Westminster-based Tri-State
Generation and Transmission Association, a member-owned utility that
serves 18 of Colorado’s 22 rural electric coops and 43 coops overall in
Colorado, Nebraska, Wyoming and New Mexico.
“A significant
transition to electric vehicles would drive electricity sales, as each
electric vehicle increases household electricity consumption by about 30
percent,” said Lee Boughey
, Tri-State’s seniormanager
for communications and public affairs. “Support for infrastructure
upgrades in rural areas will be critical to maintain reliability and
serve growing loads, in particular where expensive, high-demand,
fast-charging infrastructure is needed along rural interstates and
highways.”
Tri-State, which recently announced a new 100-megawatt
solar project and currently generates nearly 30 percent of its power
from renewables, has been somewhat overshadowed in recent weeks by big
announcements and decisions from publicly-owned utilities such as Xcel
and the Fort Collins-based nonprofit Platte River Power Authority
(PRPA).
Minnesota-based Xcel, an eight-state utility and Colorado’s largest power supplier, in December announced a
target of 100-percent carbon-free by 2050.
And the PRPA board of directors subsequently set that same goal but 20
years earlier in 2030, supporting the zero-carbon goals of four of the
cities it serves: Fort Collins, Loveland, Longmont and Estes Park.
Combined, Xcel
(54 percent) and Platte River Power Authority (5.6 percent) account for
close to 60 percent of Colorado's retail electricity sales and serve
about 58 percent of the state's customers. So the majority of the
state’s power providers are on a path to carbon-free electricity.
Ben
Fowke, president and CEO of Xcel, speaking on a conference call with
reporters in December to announce the company’s 100-percent by 2050
goal, notably did not embrace the 100-percent renewables mantra of the
Polis administration, which may be why some lawmakers and conservation
groups are now looking to codify “carbon-free” in Colorado law.
“There
is a difference,” Fowke said. “I like to listen to science, and
scientists today will tell you that on a big grid, not an individual
community or home or business, 65, 70 percent renewables is probably the
most we can do. Now, can technology, battery storage and other things
develop that aren't around today? Of course they can, and 2050’s a long
way away.
“But I think it's important we don't shut down that the
real goal is 100 percent carbon-free, and so let's make sure we look at
all the tools in the toolbox to get there and we'll bet on the ones that
are the most pragmatic and economically viable.”
Fowke said Xcel
can to get 80 percent carbon-free with existing technology but that
strides will need to be made in other energy arenas in order to get to
100 percent carbon-free, including carbon capture, hydrogen, nuclear and
better battery storage.
Xcel provides nuclear power in Minnesota
that Fowke doesn’t want to see shut down prematurely. He noted that
while nuclear is 20 percent of the nation’s power mix, it comprises 65
percent of the carbon-free energy.
Colorado no longer generates
any nuclear power, and its overall aridness makes it unlikely to get
back into the game after the shuttering of the St. Vrain nuclear
facility in the 1980s. (Most nuclear power plants use large amounts of
water to produce steam to turn power turbines and for cooling.)
So wind and solar – two fairly inconsistent power sources
– remain the most viable path toward reduced carbon emissions.
Hydroelectric, which accounts for just over 3.5 percent of the state’s
power mix, does not count as a renewable source under the state’s own
guidelines.
Since 2004, when Colorado became the first state to
pass a voter-led renewable energy standard, the amount of renewables,
especially wind, has steadily climbed.
'Started the ball rolling'
When single-term Colorado Gov. Bill Ritter took office in 2006 and
began enacting his New Energy Economy,
more than 70 percent of the state’s power came from coal, most of it
mined in Wyoming. Ritter put in place policies that, according to U.S.
EIA, saw electricity from renewable sources more than double between
2010 and 2016, to just under 20 percent. And coal use has dropped nearly
20 percent.
Much of that decline in coal benefited the natural
gas industry, which has climbed to nearly 24 percent of the state’s
power mix. Gas prices also have been low in recent years relative to
coal.
But while it burns cleaner than coal in terms of overall
carbon emissions (up to 50 percent cleaner by some estimates), natural
gas is still a fossil fuel, with front-end methane emissions that can be
up to 20 times more potent as a greenhouse gas than carbon dioxide.
Now,
in the next 21 years, Polis wants to grow the share of renewables from
20 percent to 100 percent – a big leap in just a couple decades. That
has some in the power sector worried.
“Reliability is our members’
foremost concern, and together we share a moral and legal obligation to
keep the lights on,” Tri-State’s Boughey said. “Even as renewables grow
and battery technology advances, we must recognize the need for
resources, including coal and natural gas, that can be turned on or
turned up when electricity demand rises or when renewables are not
sufficiently available.”
Boughey added that transmission from
renewable sources in remote areas of the state to where people live on
the Front Range or in hard-to-reach rural areas will a big factor in how
successful Polis’ agenda will be, so he’s eager to see how the governor
plans to streamline the often decade-long process of approving and
building new transmission lines.
One of Tri-State’s member coops, the Delta-Montrose Electric Association on the state’s Western Slope,
made moves recently to sever ties with the power provider, citing higher rates and a lack of urgency by Tri-State in adding more renewable power supplies.
Other
rural coops on the Western Slope, despite relatively tiny membership
numbers, have been exercising outsided influence in the push to add
renewables.
Holy Cross Energy in Glenwood Springs, with 60,000 members stretching from Vail to Aspen,
recently inked a deal
with Denver-based Guzman Energy to develop a 100-megawatt wind farm and
offload its share of the Comanche 3 coal-fired power plant in Pueblo.
Guzman is also working with Delta-Montrose.
Holy Cross President
and CEO Bryan Hannegan says the deal will allow the coop to achieve its
70 percent renewable by 2030 goal – announced just last fall – nine
years earlier in 2021. Holy Cross, which is not a Tri-State member,
was singled out for its progressive policies by Xcel Energy in December.
“We
like to think that we started the ball rolling, Xcel gave it a huge
shove, Platte River gave it another big shove, and I think the governor
has a great opportunity to give it an even bigger shove with supportive
state policies and programs that will make it easier to accelerate this
transition,” Hannegan said.
Whether those policies include supporting a bill to limit carbon emissions remains to be seen.
A
spokeswoman for Polis did not respond to Colorado Politics’ request for
comment on the possibility of carbon-cap legislation this session.
And
some experts advise caution in legislating too quickly. University of
Colorado professor Paul Chinowsky, who co-authored a chapter on
transportation infrastructure for the rather dire
Fourth National Climate Assessment that made international waves when it was released in November, urges a more measured approach.
“If
you just focused on, ‘We're going to pass a law right away,’ every
trade industry around is always going to go against you,” Chinowsky
said. “So, let's bring back the old idea of the blue ribbon commission,
and put together a top 10 list of things that people can get behind.”
Then Chinowsky suggests a realistic timeline with meaningful commitments and action items.
“Get
people on board when you're going to make major change so that the
first thing you do isn't angering people and motivating people to work
against you,” Chinowsky said. “When you talk about an issue that's this
important and has this much long-term impact, you've got to get people
to coalesce together and don't divide them even further or you’re not
going to get anywhere.”