By Jerry Brown
BrownonGreen.Net
A bill encouraging Xcel Energy to switch several coal-fired power plants to natural gas, which has been on a bullet-train trajectory through the Colorado Legislature, hit what appears to be a minor speed bump on Monday.
With
H.B. 1365 scheduled for preliminary approval in the Senate later in the day, supporters of the bill staged a little political theater on the west steps of the Colorado Capitol Monday morning to show their support.
Gov. Bill Ritter, a bipartisan group of legislative supporters, environmentalists and the head of the Colorado Oil and Gas Association voiced support for the bill at a news conference on the Capitol steps as a group of 200 or so supporters stood in the background.
But a short time later, Sen. Sean Mitchell, R-Broomfield, asked that the vote be delayed to give legislators more time to review the bill and offer changes.
Although Mitchell's request slowed the bill’s accelerated trip through the legislature, the delay could be short-lived. The bill was rescheduled to come up for a Senate vote on Tuesday morning.
The bill, approved by the Colorado House last week, would require Xcel Energy to submit a plan to the Colorado Public Utilities Commission by August 15 for reducing emissions from its coal-fired generating units in the state.
Supporters said the legislation responds to a warning from the U.S. Environmental Protection Agency that Colorado faces federal action to bring the state’s air quality into compliance with the Federal Clean Air Act.
They said the bill will mean more jobs for the state and clean up the air along the Front Range without hurting the state’s coal industry because, they said, most of the coal mined in Colorado goes to utilities in other states and the loss of coal sales in Colorado can be made up in sales to utilities in other states.
But Stewart Sanderson, president of the Colorado Mining Association, disputed all of those claims.
“This bill is a backroom giveaway to the gas industry,” Sanderson said. “It will cost electricity consumers a bundle.” And it will mean a net loss of 500 jobs in the state because of the loss of mining jobs, he added. He said the the power plants covered by the bill burn more than 2.6 million tons of Colorado-mined coal annually. "We can't make that up in (out-of-state) export markets," he said.
Under the bill, the PUC would be required to “approve, deny, or modify” the plan by December 15 of this year and implement it by December 31, 2017.
Supporters of the bill, including Xcel Energy, see the proposed legislation as cheaper in the long run than allowing EPA to take what they fear would be a piecemeal approach involving one power-generating unit at a time.
“In the long run, it would be a better deal for our customers,” Xcel Energy spokesman Mark Stutz said of the proposed legislation.
The bill is “an opportunity to craft a uniquely Colorado solution for cleaner air while growing jobs in Colorado through the use of homegrown cleaner fuels,” Ritter said.
Stutz said the bill could affect one of more of three Xcel Energy generating stations along the Front Range -- the Cherokee Generating Station in north Denver, Valmont Generating Station in Boulder and the Pawnee Generating Station in Brush.
Converting coal-fired units to natural gas isn’t the only option, Stutz said. Xcel Energy could submit a plan for reducing emissions by retiring one or more coal-fired units or retrofitting the units with equipment that would reduce emissions by the required amount while still using coal, Stutz said.
Retrofitting the units to allow the continued use of coal doesn’t appear likely, however.
The bill directs that the plan for reducing emissions "give primary consideration to replacing or repowering coal generation with natural gas" and says “a coordinated plan of reduction of emissions will . . . promote the use of natural gas and other low-emitting resources to meet Colorado’s electricity needs, which will in turn promote development of Colorado economy and industry.”