Colorado Energy and Politics News – Part I

I got behind the news late last week and into the weekend, so this the first of two roundups of items I saw.

State Representative Sara Gagliardi (D-JeffCo) introduced a bill (HB09-1331) that promotes low-emitting cars and trucks. It makes changes to the existing tax credit for purchases of vehicles using alternative fuels, for purchase of idling reduction technologies or for conversion of vehicles to use alternative fuels.  I heard a segment on the Ed Schultz show earlier this afternoon about an idling technology that I’ll have to look into.  It sounded like it would reduce the amount of fuel burned from 1 gallon per hour during idling to 1 gallon per 20 hours, but I could have heard the improved ratio incorrectly.

Legislation from Rep. Claire Levy – 2/18/09

Courtesy of an email I received, here are a few bills that Rep. Claire Levy is working on this Session:

HB1094 to require use of a hands-free device for talking on a cell phone while driving passed out of the Transportation & Energy Committee on a vote of 9 – 2.  The bill must be heard in the Appropriations Committee before being debated on the floor of the House.  I am encouraged by the support I have received from across Colorado.  Many people have written to me that they would like it to be stronger and eliminate all use of a cell phone, whether hands-free or not.  I have read the literature that supports a stronger bill but do not believe such a bill would pass.  Eliminating as much distracted driving as possible is a start.

HB 1093 to end the practice of WalMart and other large retailers of artificially increasing their business expenses by effectively paying rent to themselves and deducting that as a business expense passed the House and is in the Senate.  I sponsored a similar bill last year, which the Governor vetoed.  I have worked out the issues with the bill and got it out of the House with only token opposition.

SB 51 allows a third party installer to own the renewable energy equipment installed on residential property and sell the power to the consumer without being considered to be a utility. This will enable the installer to finance the renewable energy equipment on behalf of the consumer by being paid back in the form of payment for the energy generated by the equipment. The bill also facilitates financing of larger systems owned by the consumer.  SB 51 survived its first hearing in committee.

I think HB1094 is a good idea.  I wish current distracted driving offenses currently on the books were enforced better, however.  We all see drivers doing something in addition to or instead of driving their vehicles.  Having another law on the books that won’t get enforced doesn’t help anybody.

I absolutely like HB1093.  Loopholes like this should be researched and shut down.  Let the largest corporations pay their fair share of use of the commons.  They get too many breaks as it is.

I hadn’t heard of anything like SB51 yet.  At first glance, I think it’s a good idea.  It sounds like another way to chip away at the expense of installing renewable energy infrastructure where the energy is being used.

The Renewable Energy Finance Act of Colorado

From a press release sent out Monday by CO State Sen. Morgan Carroll’s office:

The 2009 legislative session will open tomorrow at 10:00 with an onslaught of new bills.  Among them will be the Renewable Energy Finance Act of 2009 introduced by Sen. Morgan Carroll (D-Aurora) and Rep. Claire Levy (D-Boulder).

Colorado has been described as the Saudi Arabia of Solar and Wind, yet average homeowners can scarcely afford to participate.

This bill facilitates four different financing options that allow monthly payments:

1.  3rd party lease agreements;
2.  bank loans;
3.  credit union;
4.  mortgage

These loans or payment plans can be used for:

1.   solar;
2.   geothermal;
3.   wind or
4.   energy efficiency upgrades

for residences or businesses.

This measure will bring investment capitol to Colorado, make alternative energy upgrades more affordable for hundreds of thousands of people and create new jobs.

“Access to renewable energy should not just be for the rich.  We can create many good-paying jobs and finally give access to the renewable revolution to thousands of energy-conscious Coloradans.”, said Sen. Morgan Carroll (D-Aurora).

It’s good to see this bill being announced at the beginning of the 2009 legislative session.  Sen. Carroll is one of the best progressive legislators I’m aware of; it’s encouraging to see Rep. Levy of Boulder join this effort.  Coloradans want and need to install renewable energy infrastructure.  It pays for itself over a reasonable time frame and every ton of CO2 we don’t pollute into the atmosphere is a little less forcing of our climate.  The biggest problem has been the up-front costs of purchasing renewable energy systems.  If Colorado can make that hurdle a little easier to get over, everybody benefits.  This effort will end up expanding the renewable energy industry, which will create good paying jobs – exactly what needs to happen in the awful recession we’re facing.

Democrats control both houses of the Colorado state legislature – so this bill should be passed.  I expect Gov. Bill Ritter to sign it – this fits neatly into his New Energy Economy project.  More details to come as the bill becomes available and makes its way through the process.

Sen. Carroll asked for input in this SquareState diary.

Energy Efficiency

I received an email from one of Colorado’s state legislators, Rep. Claire Levy.  One of the things she discussed was her interest in improving energy efficiency as her focus on climate change policy.  First off, a big tip of the hat to Claire for making climate change policy something she pays attention to at the state level.  I think Americans are going to see a lot of good policies enacted at the state level in the next few years due to the pent up demand for action thanks to the Bush “administration”.  Further, I am glad that Rep. Levy is examining energy efficiency as the starting point of needed actions.  I approve of this not only because I want to see some kind of action toward addressing the crisis, but because energy efficiency is one of the least expensive solutions to making a difference.  Note that I don’t think climate change policy is too expensive to consider, as many Cons are doing.  Just the opposite: I think the only way we’re going to really break out of the severe Bush recession is by addressing climate change and the economy together.

Back to Rep. Levy, this is what she had to say:

I am working on legislation to help people reduce number of miles they drive (known in the field as “vehicle miles of travel”).  Reducing vehicle miles of travel is a tough nut to crack because many people are locked into their driving habits by their housing options.  Other than fuel, people are not generally tuned in with the cost per mile of their driving.  In addition, transportation infrastructure generally is built to serve new development wherever it may be located, thereby stimulating yet more driving.  Reducing vehicle miles of travel requires efforts to reduce sprawl and, as importantly, not facilitating sprawl through transportation policies.

Sprawl is indeed a huge obstacle to reducing miles traveled and thus reducing greenhouse gas emissions by the transportation sector.  I recommend an increased focus on mass transit and telecommuting.  Something else Rep. Levy doesn’t mention is that true cost-per-mile hasn’t factored in the costs of greenhouse gas emissions.  Accounting for those very real costs will almost certainly force people to search for alternative methods of transportation.

I have three proposals in this area.  I am taking a second crack at legislation to get local governments, which are in charge of land use policy, and the Colorado Department of Transportation together so we make more efficient use of existing highways rather than creating demand for new ones.  I am also researching legislation to promote what is called “Pay as You Drive” automobile insurance, which would allow people to choose an insurance product that rewards them for driving less.  (After all, if you aren’t driving you can’t cause a car accident.)  Currently, we pay a lump sum regardless of how much we drive.  Insurance becomes a sunk cost.  But if you could reduce your insurance premium by reducing your driving, there would be an incentive, along with the saved fuel cost, to combine trips, walk, take transit, shop closer to home, etc.

Unfortunately, one of the things holding any solution dealing with transportation back is the dismal financial bind with which the Colorado Cons have saddled the state.  Because of their anti-investment beliefs, Colorado is severely limited in options to pursue.  The Cons want everybody to pay for everything themselves, as part of their “You’re On Your Own” dogma.  As a result, it will prove very difficult to shift financial resources around to deal with the crises we currently face.

Energy efficiency outside of the transportation sector should also be on Rep. Levy’s goals.  Buildings built in the 20th century and so far in the 21st century largely are horrible energy sinks.  Reducing that waste (reducing demand), would stall the pro-fossil fuel burning folks’ plans of building new and still polluting power plants.  Every ton of coal or cubic foot of natural gas that isn’t burned is a little carbon that doesn’t get emitted into the climate system.  Again, programs to increase efficiency in cars and buildings are the cheapest available.  Creating and assisting new programs would make increased energy efficiency even more the norm and would be a positive step in addressing climate change.  It’s something Rep. Levy and others should be aggressively promoting.  I hope the next session of Colorado’s legislature is productive in this area.