Sparks were flying in Denver yesterday. Coal brought its big guns to a Colorado Public Utilities hearing. The oil and gas industry brought their big guns. Xcel Energy brought theirs. Environmentalists… The subject was the implementation of the Clean Air-Clean Jobs Act, especially its cost as reflected on consumer’s utility bills. This act, sponsored by both Democrats and Republicans, and signed into law on April 19, 2009, requires that Xcel energy reduce its emission of nitrogen oxide by 80% by 2017. Xcel was directed to work with the Colorado Department of Public Health and Environment to come up with a plan to meet the required reduction of these emissions, giving special consideration to converting old coal-fired plants to natural gas.The Colorado Mining Association testified that Xcel wasn’t accurately predicting the impact of this conversion on the price of electricity used by business and consumers. The basis of this argument is that natural gas prices fluctuate fairly often and wildly, while the price of coal is stable. They then projected that this bill, which has already been signed into law, would cause Colorado to lose from 30,000 to 120,000 jobs. Xcel Energy predicts that six coal miners would lose their jobs. (My source for that number is Fred Eggleston, an Xcel representative and was in a one-on-one conversation at the Club 20 steak fry.)Nobody knows where the Colorado Mining Association came up with the lost jobs number, because they did not reveal their methodology at the hearing. They say it includes the trickle-down effect from other industries. However, a fact sheet about coal at their website says that Colorado has 2,450 coal workers. There must be a lot of trickle-down, because it has to account for 98% of the number they are throwing around. According to that same fact sheet, about 2/3 of the coal produced in Colorado is shipped to other states. Colorado coal is desirable because it is cleaner. So at least 2/3 of the coal workers can expect to keep their jobs; they will be mining coal to be shipped to other states.Xcel says that their plan will require new construction investment of $1.3 billion over the next 12 years. That would put construction workers back to work. It would reduce sulfur emissions by 84%, mercury emissions by 85%, and help Colorado meet its goal of a 20% reduction in carbon dioxide emissions by 20%. Environmentalists like this bill because of the reduction in emissions. Nitrogen Oxides, as an example, can cause or make worse emphysema, asthma, or heart disease leading to increased hospital visits. Bottom line: I favor any attempt to reduce the emission of toxins into our air supply. The conversion from carbon based fuels to green energy won’t take place over-night. Coal and Natural Gas are both important to the state. Stop pitting one against the other. And don’t believe everything you read from combatants without doing some fact checking. It all may be hype just to make you vote with your emotions instead of with your head.Homework:Hearing on Xcel Conversion from Coal to Natural Gas Press Release on Day Bill SignedWhy We Care About NO emmissionsMother Goose Story of CoalColorado Mining AssociationCMA Fact Sheet About Coal
There’s a new coal fired power plant being built in Gillette, Wyoming, in the neighborhood of a coal mine that my Uncle Dale worked in for many years. Residents of neighboring South Dakota are protesting because the utility has requested a 26% increase in price to pay for the plant. Protesters don’t seem to care that the plant doesn’t contain state of the art scrubbers to protect air quality in the area, which includes the incredibly beautiful Black Hills of South Dakota, home of Mt. Rushmore.Meanwhile, back in Colorado, Xcell Energy is decreasing its usage of coal by 30% as it converts three coal powered plants to natural gas. Their motivation is impending EPA regulation designed to reduce the infamous brown cloud on the Front Range. The coal industry in Colorado is protesting because they believe it will cost Colorado jobs in their industry. Never mind that most Colorado coal is sold out of state, and continues to be desirable because of its unique characteristics.Back in March, which seems like a lifetime ago, I met with Fred Eggleston of Xcel Energy, who was anxious to tell me that Xecel is #1 in wind and #2 in solar, and if the trend continues, they will be #1 in the nation in all renewable. They are currently encouraging people to install solar, with rebates, so that they can exceed the state mandate to get 30% of their energy from green sources. But Xcel is also opening Camanche III, a new coal fueled facility that uses new technology and is 10 times the size of the about-to-be-decommissioned-after-piloting-a-solar-project local Cameo plant.Eggleston was also excited to tell me about their Innovative Clear Technologies Program, announced in January 2009. It involves one new clean technology program each year for 10 years. The first project was Cameo, where the company is already saving 10 times the cost of the project. It also involves a start date for tearing down Cameo by 12/31/2010 or 12 months from the start date of the solar project. Representative King sponsored a bill to try to save the 35 jobs currently at the plant.And in the middle of all of this angst about jobs and clean air and clean water, along comes the EPA with a new rule saying that mountain top coal mines can no longer just dump their waste into valleys, effectively burying streams. There is a lesson in here somewhere, and I think it may be that left to its own devices business, even utilities that are #1 in renewable energies, will only consider the cost of polluting our air and water when forced to do so by regulation. We need to find the right regulatory balance that preserves jobs, creates the energy we need, and leaves our air breathable and our water drinkable. But we need regulation. Homework:http://www.gjfreepress.com/article/20100401/COMMUNITY_NEWS/100409997/1076&ParentProfile=1059http://www.google.com/hostednews/ap/article/ALeqM5jaVtbqC2cFVFywcDKO9xMhAsvMKgD9EQC6482http://cleantechnica.com/2010/04/01/xcel-energy-cuts-colorado-coal-use-by-30/http://www.gjsentinel.com/news/articles/coalplant_conversion_bill_on_ghttp://www.gjsentinel.com/opinion/articles/printed_letters_april_1_2010
In surfing the web this morning looking for things to blog about, I was struck again by how resource rich our corner of the world actually is. Our economy is linked to coal, natural gas, uranium and water—just to name a few resources we have in abundance here.We have people who depend on each of these resources for their jobs. And we have people who want to pay the lowest possible wage to the workers who work in resource extraction. A Highlands Ranch developer, who is also a state senator, is feuding with a bureaucrat who enforces Colorado’s real estate laws while also trying to exempt Colorado water projects from federal regulations requiring Davis Bacon wage rates.And we have media coverage that pretty consistently tells the story of industry, but rarely tells the story of labor. Davis Bacon wage rates, which are always made to seem unfair by reporters, are nothing more than a federal law that says that if federal money is used to fund a project, the workers should be paid union wage rates. For the life of me I can’t figure out why it is such a bad thing to pay decent wages to the people who live in my neighborhood, and spend money in local businesses which results in sales taxes for cities and counties. Nor can I figure out why developers are always surprised that the federal government actually enforces federal laws when they fund a project with taxpayer money.It is all about balance. We need the jobs. We need a clean place to live and work. We need workers to share in the fruits of their labor as do the business owners and developers who hire them.Homework:http://www.deltacountyindependent.com/index.php?option=com_content&view=article&id=14106:huge-gas-field-eyed-for-development&catid=77:top-stories&Itemid=373http://www.gjsentinel.com/news/articles/bill_focuses_on_cleanup_of_urahttp://www.statebillnews.com/section/frontpage/ßStory about SJR10-018http://www.denverpost.com/business/ci_14706668http://www.hcn.org/greenjustice/blog/location-location-location
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