Colorado Energy Bill Inches Along in Legislature

By Bill Jackson, Greeley Tribune, Colo. -- Mar. 3

A bill that would establish a Colorado Renewable Energy Standard has made its way through the Colorado House and was passed earlier this week on a 6-0 vote by the Senate Local Government Committee.

But officials backing the bill, which include all the major farm organizations in the state, said Tuesday getting the measure through the Colorado Senate is not a done deal.

House Bill 1273 requires the state's two investor-owned utilities -- Xcel Energy and Aquila -- to provide a minimum of 500 megawatts of renewable energy in Colorado by 2005 and gradually increase that to 1,800 megawatts by 2020. Both utilities favor the measure. Rural electric associations and municipal utilities would be exempt from the requirements.

The legislation also requires 150 percent credit for renewable energy generated in rural areas and establishment of a market-based credit training system and transmission availability provisions to protect utilities and customers from unexpected costs.

Ag organizations, led by the Rocky Mountain Farmers Union and the Colorado Farm Bureau, claim the measure is a win-win for everyone in the state but in particular for rural areas.

They point to the Lamar wind farm in southern Colorado that will provide annual royalties to landowners of more than $350,000. It will increase the county tax base by 29 percent and has provided more than 300 installation jobs and 15-20 full-time operation and maintenance jobs.

"There are farmers and ranchers who are getting $4,000 a year, per turbine, as royalties in Prowers County," said Ben Way, executive director of the farmers union. The group backed a similar bill in the Colorado legislature last year that was defeated.

But Way, and Tracee Bentley, director of national affairs for the farm bureau, said income potential for farmers and ranchers are enormous. They point out that the Texas standard will lead to more than $4 billion of rural economic development by 2009.

Opponents, such as Sen. Dave Owen, R-Greeley, don't like the mandate required by the measure.

"I don't think we should be messing with the free market with renewable energy," Owen said. He also said hydro-power is getting the short end of the measure as it is written.

"I need to hear more debate on the entire issue before I make any decision," Owen said.

Bentley said wind power does not require water, which is becoming more scarce in the state, and Way countered that there are several mandates -- residents can't drive until they are 16 or drink alcohol until they are 18 -- are good public policy.