Clean Energy Economy News | Online edition

Oct. 1, 2008 | Vol. 1, No. 10

In this issue

• Garfield partners submit $2 million request for New Energy Communities grant
• Aspen installs 21 kW solar PV system at water plant
• Glenwood Springs Council takes a look at proposed Climate Action Plan
• Solar tax credit renewal is down to the wire this week
• Campaign promotes Aspen-to-Silt vote in favor of Bus Rapid Transit
• State ballot offers two measures changing severance tax spending
• Three-county solid waste partnership moves forward

Events

• Canadian tar sands presentations this week
• New Castle Solar Home Open House Tour is Saturday
• Gov. Ritter hosts 2nd annual statewide New Energy Conference
• Blue Ribbon Transportation Panel holds meeting in Glenwood Springs

Clean Energy Bits 'n Bobs

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Garfield partners submit $2 million proposal
for New Energy Communities grant

The local governments of Garfield County, in partnership with nonprofits, other
government agencies and community organizations, turned in a joint $2 million grant request to state government on Sept. 19 for a comprehensive countywide clean energy program.

The Garfield County proposal is competing with 15 others for funding from the $10 million New Energy Communities Initiative, offered by the Department of Local Affairs (DOLA) and the Governor’s Energy Office (GEO). The grant awards will be announced on Oct. 14. (See story below.)

Partners in the proposal (see list at right) pledged $506,000 in local cash match and $1,265,000 in in-kind match for 2009, contingent on final budget approvals later this year. The Manaus Fund pledged $250,000 in seed funding for a clean energy investment fund, contingent on the full $2 million proposal being funded.

Clean Energy Economy for the Region (CLEER) convened the county-wide effort to apply for the grant and CLEER staffers Alice Laird and Heather McGregor worked with the county-wide coalition for three months to shape the proposal and write the grant applications.

If the full $2 million in funding is awarded, the Garfield New Energy Communities Initiative will carry out these comprehensive clean energy programs:

Greening Public Facilities: Energy audits and efficiency upgrades for buildings owned by partner governments.

Renewable Energy Demonstration Projects: Solar photovoltaic installations on public buildings in every community as part of a countywide 1 megawatt campaign.

LED Lighting: A demonstration retrofit of street lights with high-efficiency bulbs in downtown Rifle.

Small Commercial Audits and Retrofits: Technical assistance and incentives for commercial property owners to make energy efficiency upgrades, with the goal of a countywide ongoing commercial efficiency program.

Residential Solar: Technical assistance, education and rebates for installation of solar photovoltaic and solar thermal systems on homes.

Insulate Colorado: Rebates for weatherization upgrades of homes.

Energy Star New Construction: Education and training for the construction industry, building officials and real estate agents on the Energy Star home energy rating system.

Greening Government: Systems to measure present energy use, track progress over time, and assist governments in saving money spent on utility bills.

Model Codes: Technical assistance in creating and adopting building and development codes that maximize energy efficiency and transportation options.

Education: Renewable energy training for K-12 teachers, and scholarships for county residents to attend Solar Energy International courses.

Transportation: Programs and education to promote sustainable transportation in communities and through the valley.

Clean Energy Financing: Development of a local clean energy loan fund.

Projects within the Garfield New Energy Communities Initiative will last from one to three years. The effort will be governed by a council of representatives from each of the partner governments, with guidance from local experts in the fields of energy, transportation and banking.

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Aspen installs 21 kW solar PV system at water plant

First of three phases aimed at carbon-neutral operations

The City of Aspen moved one step closer to its goal to be a carbon-neutral electric utility by installing a 21 kilowatt solar photovoltaic system to help run the city water treatment plant.

City officials and clean energy advocates celebrated the solar PV installation with a ribbon-cutting event on Tuesday.

This installation is the first of three phases to be done in 2008 and 2009. Once all three phases of the project are completed, the system will supply virtually all of the water treatment facility’s electrical demand when the solar cells are in operation.

Phase II couples installation of another 21 kW of solar PV with an aggressive energy conservation program adopted by the water department. The combined action of conservation, plus the renewable energy generated from the Phase I and II solar installations, will reduce consumption of the power supplied by the grid by 66 percent.

Phase III, to be completed in 2009, involves the installation a third 21 kW system. This phase also includes installation of a solar-powered system to generate hydrogen to be used in fuel cells as a backup power supply.

By the completion of all three phases, the water plant’s carbon footprint will have been reduced by more than 4,600 tons, and will offset the city’s exposure to energy price volatility. 

The City of Aspen is currently conducting feasibility studies on other renewable energy projects to meet its carbon neutrality goals. These projects include:

• A community-wide geothermal heat exchange utility using existing stored water in nearby mine shafts
• Hydrogen generation for hydrogen cars and fuel cells
• Micro-hydroelectric turbines on water lines
• Heat exchange from the new Castle Creek hydroelectric plant and the recreation center swimming pool
• Geo-exchange from the wastewater treatment plant to offset heating and cooling loads at new employee housing sites
• Replacing a diesel generator with fuel cells powered by hydrogen

— Kim Peterson
City of Aspen Canary Initiative

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Glenwood Springs Council takes a look
at proposed Climate Action Plan

Rebates for solar installations top list of recommendations

The Glenwood Springs Energy Efficiency Ad Hoc Committee presented the Glenwood Springs Energy and Climate Action Plan to City Council in a work session on Sept. 17.

The plan offers 180 recommendations related to smart growth, open space, landscaping, transportation, energy efficiency, renewable energy and waste management. The top five recommendations are:

1. Provide rebates for installation of solar photovoltaic and solar thermal systems.
2. Increase the share of clean energy in the city’s purchased power portfolio.
3. Appoint a staff person and commit significant resources to coordinate energy issues for the city government and the community.
4. Pursue a renewable energy project to heat the Community Center swimming pool and building space.
5. Study potential uses of geothermal energy for heating, cooling and power generation, including a geothermal energy district.

Energy Efficiency Committee members asked the council to hold a public hearing on the plan before considering it for adoption.

The proposed plan fulfills the charge set for the committee, which also included developing an estimate of the city government’s 1990 energy use and greenhouse gas emissions level, conducting a greenhouse gas inventory of current city government buildings and operations, and investigating an energy audit process for city buildings.

While the City Council did not take action on the plan, it has committed significant funding to energy efficiency and renewable energy projects in 2009, contingent on budget approval. City Manager Jeff Hecksel said he would like to budget $250,000 for efficiency improvements in city government buildings and operations.

To read the 23-page plan, click here. (120 KB)

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Solar tax credit renewal is down to the wire this week

Congress must reconcile House and Senate versions, Bush threatens veto

Vote on Thursday is likely last chance for Congress to extend solar tax credit
Action needed before October recess to maintain investment momentum in solar and wind energy.

Both the U.S. House and Senate have passed differing versions of bills that would extend the investment tax credit for renewable energy investments. But they must agree this week on a uniform version that won’t prompt a presidential veto in order for the tax credit to continue beyond its Dec. 31, 2008, expiration date.

Debate over the tax credit, which is bundled with other measures in the two bills, will occur in the shadow of efforts to craft a taxpayer bailout of the country’s financial industry. It also comes as Congress prepares to take its pre-election October recess.

“We aren’t taking sides or pointing fingers, we are just saying they need to get this done,” said Monique Hanis, communications director for the Solar Energy Industries Association (SEIA) in Washington, D.C. She said it is unlikely that Congress will hold a lame-duck session after the election.

The two bills are the Senate-passed version, HR 6049, and the House-passed version, HR 7060. Both measures extend the 30 percent investment tax credit for another eight years, and raise the present $2,000-per-year cap on credits for residential solar installations to $4,000.

At issue is how the bills pay for the lost federal revenue. Some House Democrats are insisting on a revenue balance, which is spelled out in HR 7060. However, the Bush administration has issued statements in support of HR 6049 and threatening a veto if Congress instead passes HR 7060, Hanis said.

Lobbyists for the solar and wind industries are pushing hard for passage of the tax credit extension, noting that jobs and the strong momentum of the renewable energy industries are at stake.

A new SEIA-commissioned economic analysis of the tax credit projects that an eight-year extension would assure 440,000 permanent jobs and generate $232 billion in new investment in the solar sector alone. The analysis estimates that the tax credits would drive installation of more than 28 gigawatts of solar electric generation capacity — enough to power 7 million homes —  in that period.

Read the SEIA press release

Download the full report, Economic Impacts of Extending Federal Solar Tax Credits (79 pgs, 1.5 MB)

SEIA resource page on the Investment Tax Credit

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Campaign promotes Aspen-to-Silt vote
in favor of Bus Rapid Transit

The “Faster, Cleaner, Cheaper” campaign is urging valley residents to approve an additional 0.4 percent sales tax from Aspen to New Castle to fund the Roaring Fork Transportation Authority’s Bus Rapid Transit plan.

The plan appears as Question 4A on the Nov. 4 ballot throughout Pitkin County and in Basalt, El Jebel, Carbondale, Glenwood Springs, New Castle and Silt. Voters in Silt will also be asked whether the town should join the RFTA district.

“Things are going great with the campaign. We are getting quite a bit of momentum, the big funders are coming in, and we are getting lots of endorsements and supporters,” said Jacque Whitsitt of Basalt, chair of the campaign and a RFTA board member.

“I support the BRT proposal because we absolutely have to have an alternative to the car. It became more and more obvious, when gas prices went up and people started squeezing on buses, to the point of standing room only, that transit is what keeps this valley going. People for the most part support that notion, and will vote that way,” Whitsitt said.

The vote count will be tallied for the entire RFTA district, and the tax will be applied in all RFTA member jurisdictions if the measure passes.

If the measure is approved, RFTA will use the tax revenues to issue $44 million in bonds to fund a package of improvements that will speed up bus travel and increase the frequency of bus service. RFTA has also applied for $21.3 million in federal funds to complete the improvements package.

If both funding sources are approved, the BRT plan will offer:

• Doubled frequency of bus service from Glenwood Springs to Aspen, with buses running every 15 minutes most of the day, and every 10 minutes during peak commuting hours. This increase will also double seating capacity for valley service from 500 seats per hour to 1,000 seats per hour.
• Purchase of 15 more buses.
• Bypass lanes and signal priority for buses to speed up travel time between stops.
• Advance purchase ticket machines to speed up passenger loading.
• Improvements at some bus stops that will include real-time readouts on bus arrival times.

The BRT plan is expected to reduce traffic congestion on Highway 82, give bus passengers more frequent and faster service — along with a better chance of getting a seat during rush hours.

In the news
The Aspen Times, Sept. 29, 2008
RFTA sees tax hike as more get on the bus
By Scott Condon

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State ballot offers two measures
changing severance tax spending

Two questions on the Nov. 4 statewide ballot propose changes to severance taxes collected from the oil and gas industry.

Amendment 52 shifts some severance tax revenues away from water projects and toward highway improvements. It is a constitutional amendment, so any changes to this provision would require another statewide vote.

Amendment 58 eliminates the property tax credit applied to severance tax, and directs the new revenues to college scholarships and other programs. This measure amends state statutes, so future changes could be enacted by the state legislature.

Amendment 52: Use of Severance Tax Revenue for Highways

Severance taxes collected from the oil, gas and mining industry are evenly split between impacted local governments and the state government. These revenues have risen dramatically in the past five years. The state’s half increased from less than $20 million in 2003 to about $75 million in 2008, with an increase to more than $180 million projected in 2009.

The state’s share of this funding has largely been directed to water projects. Smaller shares have funded wildlife conservation, energy bill assistance for low-income residents, control of invasive species, soil conservation, renewable energy, agriculture and state parks.

Amendment 52 puts a cap, adjusted yearly for inflation, on the state share of severance taxes devoted to these purposes, and directs any additional funding to highway improvements. In particular, it sets a first priority for relieving traffic congestion on Interstate 70.

If approved, A-52 would shift an estimated $225 million in severance tax revenues from 2009 through 2012: $89 million in 2009, $35 million in 2010, $49 million in 2011 and $52 million in 2012.

Supporters argue that the measure preserves funding for existing programs at present levels while tapping severance fund increases to fund highways, without having to raise taxes. Opponents argue that the measure diverts funding needed to meet the state’s future water needs and moves transportation funding decisions into the political arena.

Amendment 58: Severance Taxes on the Oil and Natural Gas Industry

Severance tax in Colorado is charged on a sliding scale of 2 to 5 percent. State law also allows oil and gas developers to take a credit of 87.5 percent of their property tax payments, resulting in an effective rate of 1.3 percent. Severance tax rates in six neighboring states range from 2.1 percent to 6.6 percent.

Amendment 58 ends the tax credit, increases the number of small wells subject to the tax, and sets a flat tax rate of 5 percent. Ending the tax credit will increase severance tax revenues by an estimated $258 million in 2010. Increasing the number of taxed wells will increase 2010 revenues by $62 million, and setting a flat tax rate will raise another $1 million per year — for an estimated total of $299 million in additional revenues collected in 2010. That figure is expected to climb as gas production increases.

A-58 also lays out a spending plan for severance tax revenues, dividing them in a 44-56 split. It designates 44 percent for existing state programs and local governments and 56 percent for college scholarships, wildlife habitat, energy efficiency, transportation projects in impacted areas, and community drinking water projects.

As a result, A-58 reduces funding for existing state programs and local governments by $44 million for the remainder of the 2008-09 fiscal year, from the current allocation of $315 million down to $271 million, but increases funding for these by $42 million over the next three years. This results in a net loss of $2 million.

The new beneficiaries of the added tax revenues will collect an estimated $299 million in 2010, $318 million in 2011 and $339 in 2012.

Supporters argue that gas companies are reaping record profits and don’t need a tax credit, that it would benefit the state to use the money for college scholarships, and that the effective tax increase will not make a significant difference in the price Colorado residents pay for natural gas.

Opponents argue that A-58 may turn the gas industry away from Colorado and lead to higher energy prices, while cautioning that the volatile nature of mining and energy development creates an unpredictable funding source for statewide programs. They also note that oil and gas property is assessed at three times the rate of other commercial property, so the tax credit is justified.

Recommended reading
The Bell Policy Center, Sept. 25, 2008
Colorado’s Severance Tax and Amendment 58 (13 pgs, 1.1 MB)
By Joel Minor and Rich Jones
Please note: The Bell Policy Center is supporting Amendment 58.

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Three-county solid waste partnership moves forward

On Sept. 17, public works directors, environmental health officers, solid waste managers and recycling advocates from Garfield, Pitkin and Eagle counties met in Glenwood Springs to discuss the need for and feasibility of a regional strategy. The meeting was hosted by Garfield County as part of a solid waste diversion study and project launched in August.

Discussion at the meeting covered plans for new recycling processing facilities under development by public and private sector organizations that will impact recycling opportunities in the three-county region. 

Those attending agreed that a regional strategy makes sense in terms of sustainability and economy, and is extremely timely, according to Laurie Batchelder Adams, the consultant managing the Garfield County study. At the meeting, Garfield County officials offered to direct some of its project funding to evaluate ways to launch a regional effort. The group will meet again on Oct. 15.

Documents distributed after the meeting included memos from the defunct Valley Resource Management, a solid waste partnership that served the three counties until 2002, when then-director Tresi Houpt was elected to the Garfield County Board of Commissioners.

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EVENTS

Canadian tar sands presentations this week

Energy expert Randy Udall draws comparison to proposed oil shale development

Date: TODAY, Wednesday, Oct. 1
Time: 7 p.m.
Place: Wubben Hall, Mesa State College, Grand Junction

Date: Thursday, Oct. 2
Time: 5:30 p.m.
Place: Glenwood Springs Community Center
Note: Stay after the presentation for a group viewing of the vice presidential debate

Energy analyst Randy Udall of Carbondale and conservation photographer Garth Lenz will present images and stories about tar sands development in Alberta, Canada. They are on a one-week tour of five cities in Utah and Colorado to explain tar sand production impacts to Alberta’s boreal forests and the industry’s greenhouse gas emissions.

Already, gasoline manufactured from Canadian tar sands is sold in Colorado. And on Sept. 4, the U.S. Bureau of Land Management issued a final programmatic Environmental Impact Statement for oil shale and tar sands development in western Colorado, eastern Utah and southwestern Wyoming.

Production of this fossil fuel — an extremely heavy crude mixed with sand, clay and water — is done through surface or underground mining, followed by an extraction process to render a liquid fuel that can be transported in a pipeline.

The Wilderness Workshop is sponsoring the Glenwood Springs event. For information, contact Peter Hart at 963-3977.

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New Castle Solar Home Open House Tour is Saturday

Date: Saturday, Oct. 4
Time: 10 a.m. to 2 p.m.
Place: Five venues in and near New Castle. Click here for a 1-page tour map.

New Castle opens its doors to visitors who want to learn how easy and cost-effective it can be to build or retrofit a home or business to be energy efficient and use renewable energy.

The second annual tour features three homes in Castle Valley Ranch, one home northwest of town, and a home and business, Dwyer’s Greens and Flowers, south of town. The tour is free, and solar energy experts will be on hand to answer your questions.

• 25 Buckskin, New Castle, passive solar custom home with solar photovoltaic
• 468 Silverhorn, New Castle, solar hot water and energy efficiency retrofit
• 525 Wagon Wheel, New Castle, new solar photovoltaic installation
• 1850 Co. Rd. 247, northwest of town, solar electric and efficiency upgrades using creative financing
• 4730 Co. Rd. 335, south of town, passive solar home and solar-powered greenhouse business

The local tour is part of the American Solar Energy Society's 13th annual
National Solar Tour, and is hosted by the New Castle Environmental Advisory Committee. The New Castle tour is sponsored by Sunsense, Sol Energy, Colorado Solar, Evergreen Mechanical, Holy Cross Energy and the Town of New Castle.

For information, contact Dave Schroeder at 984-3565 or fischerdedog@yahoo.com.

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Gov. Ritter hosts 2nd annual statewide
New Energy Conference

New Energy Communities Initiative grant awards
will be announced during one-day conference

Date: Tuesday, Oct. 14
Time: 7:30 a.m. to 4:45 p.m.
Place: Colorado Convention Center, Denver
Admission: $125, includes lunch

Gov. Bill Ritter Jr. is hosting the second annual “Colorado’s New Energy Economy: The Path Forward – A Local Focus” conference. Rifle Mayor Keith Lambert and state Sen. Gail Schwartz are among the speakers.

The event will focus on local issues and will give communities a chance to share local sustainability initiatives taking place across Colorado. Examples of best practice models that power communities to take part in an efficient and renewable energy future will be showcased. Participants will have a wide range of networking opportunities.

During the conference, the Department of Local Affairs (DOLA) and the Governor’s Energy Office (GEO) will announce up to $10 million in grants offered through the New Energy Communities Initiative. The intent is to reward local governments working collaboratively to position their communities at the forefront of the state’s New Energy Economy.

At the conference, morning speakers will include Gov. Ritter, GEO Director Tom Plant, Sen. Schwartz and Mayor Lambert. Local government officials from Denver, Colorado Springs, Fort Collins, Springfield and La Plata County will provide a look at what is happening in communities across Colorado.

Dan Arvizu, director of the National Renewable Energy Laboratory, will be the keynote luncheon speaker.

In the afternoon, Public Utilities Commission Chairman Ron Binz will moderate a panel focusing on “Making Where We Live More Sustainable,” and Tom Clark, executive vice president of the Metro Denver Economic Development Corp., will moderate a panel on “Making Where We Work More Sustainable.”

The conference is sponsored by the Governor’s Energy Office, Public Utilities Commission, the Department of Local Affairs, and the Office of Consumer Counsel. The state agencies are partnering with Colorado Counties Inc., the Colorado Municipal League, and Energy Outreach Colorado.

The conference has been accredited by the Colorado Supreme Court for eight general continuing legal education (CLE) credits. Conference organizers have also applied for American Planning Association credits.

Registration is $125 per person. Click here to register online and see the complete agenda.

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Blue Ribbon Transportation Panel holds
outreach meeting in Glenwood Springs

Meeting is one stop on five-week, 25-city tour 

Date: Tuesday, Oct. 21
Time: 2 p.m.
Place: Garfield County Administration Building, 108 8th St., Glenwood Springs

Gov. Bill Ritter’s Blue Ribbon Transportation Panel will meet with Garfield, Eagle and Pitkin county residents to raise awareness about Colorado’s transportation funding crisis and engage the public in a debate over possible solutions.

The event is part of a five-week tour of the state with meetings in 25 communities, from Sept. 24 through Oct. 30.

The panel met intensively in 2007 to evaluate Colorado’s overall transportation and highway needs and develop funding options.

“The strength of Colorado's economy depends in large part on our ability to fund and build a modern, 21st century transportation system,” Gov. Ritter said. “But as members of the Transportation Panel know, our roads and bridges are deteriorating and our major revenue sources are declining. 

“These meetings will help educate the public about this ‘quiet crisis,’ as the panel has called it, inform them about why transportation is so important to our economy, and urge people to become part of the dialogue going forward,” Gov. Ritter said.

The Colorado Environmental Coalition is encouraging residents to attend and raise questions related to public transit, safe bicycle and pedestrian routes, using smart growth to cut growth in traffic, and reducing transportation’s 23 percent share of the state’s total carbon emissions.

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Clean Energy Bits ‘n Bobs

Check out the new flyer from the Roaring Fork Transportation Authority, RFTA at a glance. It’s loaded with fun facts: RFTA manages 34 miles of trails, runs 100 buses that traveled 3.7 million miles in 2007, serves 175 bus stops, gets an 89 percent positive rating from riders, employs 210 people year-round, and carried 4.4 million passengers in 2007 . . .

Save the date! On Monday, Oct. 27, Danish clean energy leader Soren Hermansen, named a “Hero of the Environment” by TIME magazine, will be here in the valley presenting the story of how his home island of Samso has become completely energy independent.
Details to follow . . .

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