“If I had to sum it up in a word, I think I’d say ‘transformative.’ It’s a real shift in our policy, and I think it really shows the direction that Colorado is headed,” said Erin Overturf, chief energy counsel for the conservation group Western Resource Advocates. “I think it shows that we’re starting to take climate change seriously and recognize the task that’s truly ahead of us if we’re going to do our part to help solve this problem.”
The bills include efforts to make houses and appliances — from refrigerators, to light bulbs to air conditioners and furnaces — more energy-efficient…
Lawmakers extended state tax credits for buying electric vehicles and allowed regulated electric utilities to own and operate vehicle charging stations to try to encourage people to buy and drive zero-emission vehicles.
One of the things that sets Colorado apart from other states working to boost the use of renewable energy and reduce greenhouse gas emissions is its efforts to look out for affected workers and communities, said Anna McDevitt, an organizer with the Sierra Club’s Beyond Coal Campaign.
The bill reauthorizing the PUC has a provision requiring utilities to include a workforce transition plan when they propose shutting down a power plant. Another section on low-cost bonds to retire power plants for cleaner, cheaper alternatives also provides that a portion of the proceeds helps workers and communities affected by the closures…
Referring to the PUC bill and its carbon-reduction targets, Xcel Energy said in a statement Friday that the legislation was “heavily negotiated with a broad set of stakeholders” and protects safety reliability and customer costs…
One bill expands the size of community solar gardens, which are centralized arrays of solar panels that users “subscribe” to. They are intended for people who want to use solar power but whose roofs aren’t suitable, who live in an apartment or can’t afford to install a system.
Other legislation directs the PUC to study regional transmission organizations that would make it easier for utilities or municipalities to buy wholesale power. Another section requires regulators to take on planning to help facilitate rooftop solar and other distributed-energy installations.
The PUC also will have to look into so-called “performance-based ratemaking.” That would allow utilities to earn a certain rate of return on things such as increasing energy efficiency or installing a certain amount of rooftop solar rather than just on construction of plants or other infrastructure.
The Energy Transition Act could be a model for ambitious policies of the future.
On March 23, New Mexico Gov. Michelle Lujan Grisham signed into law the Energy Transition Act, a complex bill that will move the state toward cleaner electricity generation, clear the way for the state’s biggest utility to shutter one of the West’s largest coal-fired power plants in 2022, and provide mechanisms for a just transition for economically affected communities.
The bill has the support of the state’s biggest utility — Public Service Company of New Mexico, or PNM — as well as environmental groups such as the Natural Resources Defense Council, Western Resource Advocates and the San Juan Citizens Alliance. National media are hailing it as a mini-Green New Deal.
Here’s a breakdown of what the bill does — and doesn’t — do:
Perhaps most significantly, the bill mandates that New Mexico electricity providers get 80 percent of their electricity from renewable sources by 2040, and 100 percent from carbon-free sources by 2045. Those are ambitious goals that will result in huge cuts in greenhouse gas emissions in a state that currently gets half its electricity from coal and a third from natural gas.
That said, it’s important to remember that “carbon-free” and “renewable” are not synonyms. The 20 percent of carbon-free electricity can include nuclear, since no greenhouse gases are emitted during fission, as well as coal and natural gas equipped with carbon capture and sequestration technologies. Carbon capture is prohibitively expensive — and unproven — but nuclear power is readily available from Palo Verde Generating Station in Arizona, where PNM currently gets about 18 percent of its power.
Also, “electricity” and “energy” are two distinct concepts — a common source of confusion. This bill applies only to electricity consumed by New Mexicans and has no direct bearing on the state’s burgeoning oil or natural gas production. Meanwhile, the Four Corners Power Plant, located in New Mexico but owned by Arizona Public Service, can continue to burn coal under the renewable standards as long as the electricity is exported to other states. But PNM plans to divest its 13 percent ownership in Four Corners Power Plant in 2031, leaving the plant on shakier economic ground.
The bill helps pave the way for the planned closure of San Juan Generating Station, located just north of the Navajo Nation in northwestern New Mexico.
The station’s owner, PNM, announced two years ago that it would likely shut down the plant in 2022 because it was no longer economically viable. Many aspects of this bill are a direct reaction to the pending closure, particularly the sections that allow the utility to take out “energy transition bonds” to cover costs associated with abandonment. Those bonds will be paid off by ratepayers, but not taxpayers.
This has irked New Energy Economy, a Santa Fe-based group that has been pushing PNM to clean up its act for years. The group, a critic of the bill, would rather see PNM’s investors shoulder the cost of the bonds. After all, the investors are the ones who have profited handsomely off the power plant for nearly half a century, even as it pumped millions of tons of climate warming gases into the air, along with acid rain-forming sulfur dioxide, health-harming particulates, mercury, arsenic and other toxic materials.
While the bill does not specifically force the plant’s closure, it does mandate the creation of standards that limit carbon dioxide emissions from large coal-burning plants to about half of what coal emits per megawatt-hour — effectively killing any possibility of keeping the generating station operating.
The energy transition bonds will help fund a just transition away from coal. Some 450 jobs— about one-fourth of them held by Native Americans — will be lost when the San Juan Generating Station and the associated San Juan Mine close, together with an estimated $356 million in economic activity annually.
The bill allocates up to $30 million for reclamation costs, and up to $40 million to help displaced workers and affected communities, to be shared by the Energy Transition Indian Affairs Fund, Economic Development Assistance Fund and Displaced Worker Assistance Fund. The Indian Affairs Fund will be spent according to a plan developed by the state, in consultation with area tribal governments and with input from affected communities, and the economic development fund will help local officials diversify the local economy. The bill also requires PNM to replace a portion of the area’s lost generation capacity, in the process creating jobs and tax revenue.
The new bill has some missing elements. There’s no provision for making amends to the people who have lived near the plant for years and suffered ill health, such as high asthma rates, as a result. It won’t stop Four Corners Power Plant, located just 10 miles from San Juan Generating Station, from belching out pollution (though it does provide for a just transition away from that plant if it closes by 2031), and it doesn’t address the massive climate impact from oil and gas development or transportation. The act is merely an official acknowledgment that coal is dying, and that coal communities could die, too, without help.
Nevertheless, the Energy Transition Act is remarkable in that it promises to totally decarbonize electricity in a state that has leaned heavily on fossil fuel for decades, while also lending a hand to communities that would otherwise be left behind. It is a good template, or at least a decent sketch, for a national Green New Deal.
Extra: Listen to High Country News Contributing Editor Cally Carswell’s new Hot & Dry Podcast for even more context on New Mexico’s Energy Transition Act:
Jonathan Thompson is a contributing editor at High Country News. He is the author of River of Lost Souls: The Science, Politics and Greed Behind the Gold King Mine Disaster. Email him at email@example.com.
The Colorado Senate Transportation and Energy Committee convened the first hearing for Senate Bill 19-181, dubbed Protect Public Welfare Oil and Gas Operations.
The bill would make a variety of changes to oil and gas law in Colorado, including the following:
It would change the mission of the Colorado Oil and Gas Conservation Commission from one of fostering oil and gas development to one of regulating the industry. It also changes the makeup of the COGCC board.
It would provide explicit local control on oil and gas development, opening the door for local government-instituted bans or moratoriums, which have previously been tied up in court battles because the industry has been considered one of state interest.
It would change the way forced or statutory pooling works, requiring a higher threshold of obtained mineral rights before companies can force pool other mineral rights owners in an area.
Testimony during the committee hearing ran the gamut, including state officials, industry officials, business interests and residents, and it was expected to go well into the night…
Talking about the rallies beforehand — both pro-181 and anti-181 groups — as well as the overflow rooms necessary for all of the attendees, [Carl] Erickson said the scene was wild…
Dan Gibbs, executive director of department of natural resources; and Jeff Robbins, acting director of the Colorado Oil and Gas Conservation Commission; both came out in support of the legislation.
So, too, did Erin Martinez, who survived a home explosion in Firestone that killed her brother and her husband.
“With proper regulations and inspections and pressure testing, this entire tragedy could have been avoided,” Martinez said in closing.
The Senate Transportation and Energy Committee opened the hearing with testimony from Senate Majority Leader Steve Fenberg, the measure’s co-sponsor, according to reporting from The Denver Post.
As he told The Tribune on Sunday, he said during the hearing that the Tuesday hearing was the first of several — with six total to come.
“At the forefront, objective of this bill is to ensure that we are protecting the health and safety and welfare of Coloradans, the environment, wildlife, when it comes to extraction of oil and gas across the state,” said Fenberg, D-Boulder, according to The Post.
Energy analysts used power demand data from the Midwest’s January deep freeze and wind and solar conditions to find the gaps in an all-renewable power grid.
In the depths of the deep freeze late last month, nearly every power plant in the Eastern and Central U.S. that could run was running.
Energy analysts saw a useful experiment in that week of extreme cold: What would have happened, they asked, if the power grid had relied exclusively on renewable energy—just how much battery power would have been required to keep the lights on?
Using energy production and power demand data, they showed how a 100 percent renewable energy grid, powered half by wind and half by solar, would have had significant stretches without enough wind or sun to fully power the system, meaning a large volume of energy storage would have been necessary to meet the high demand.
“You would need a lot more batteries in a lot more places,” said Wade Schauer, a research director for Wood Mackenzie Power & Renewables, who co-wrote the report.
How much is “a lot”?
Schauer’s analysis shows storage would need to go from about 11 gigawatts today to 277.9 gigawatts in the grid regions that include New England, New York, the Mid-Atlantic, the Midwest and parts of the South. That’s roughly double Wood Mackenzie’s current forecast for energy storage nationwide in 2040.
Energy storage is a key piece of the power puzzle as cities, states and supporters of the Green New Deal talk about a transition to 100 percent carbon-free energy sources within a few decades. The country would need to transform its grid in a way that could meet demand on the hottest and coldest days, a task that would involve a huge build-out of wind, solar and energy storage, plus interstate power lines.
The actual evolution of the electricity system is expected to happen in fits and starts, with fossil fuels gradually being retired and the pace of wind, solar and storage development tied to changing economic and technological factors. The Wood Mackenzie co-authors view their findings, part of a larger analysis of utility performance during the polar vortex event, as a way to show, in broad strokes, the ramifications of different options.
We’ll Need More Than Just Today’s Batteries
A grid that relies entirely on wind and solar needs to be ready for times when the wind isn’t blowing and the sun isn’t shining.
During the Jan. 27 – Feb. 2 polar vortex event, a 50 percent wind, 50 percent solar grid would have had gaps of up to 18 hours in which renewable sources were not producing enough electricity to meet the high demand, so storage systems would need to fill in.
The grid would have to be designed to best use wind and solar when they’re available, and to store the excess when those resources are providing more electricity than needed, a fundamental shift from the way most of the system is managed today.
“In a modern power grid, all these advanced technologies are driving the need for more flexibility at all levels,” said David Littell, principal at the Regulatory Assistance Project and a former staff member for Maine’s utility regulator. Grid operators have to meet constantly changing electricity demand with the matching amount of incoming power. While fossil fuel power plants can be ramped up or down as needed, solar and wind are less controllable sources, which is why energy storage is an essential part of planning for a grid that relies on solar and wind.
Much of the current growth in energy storage is in battery systems, helped by plunging battery prices. A large majority of the existing energy storage, however, is pumped hydroelectric, most of which was developed decades ago. Other types of systems include those that store compressed air, flywheels that store rotational energy and several varieties of thermal storage.
Schauer points out that advances in energy storage will need to be more than just batteries to meet demand and likely will include technologies that have not yet been developed.
And that won’t happen quickly. He views the transition to a mostly carbon-free grid as possible by 2040, with the right combination of policy changes and technological advances. He has a difficult time imagining how it could be done within the 2030 timeframe of the Green New Deal.
‘This Is a Solvable Problem’
The larger point is that such a transition can be done and is in line with what state and local governments and utilities are already moving toward.
Feasibility is a key focus of the research of Mark Jacobson, a Stanford University professor, who has looked at how renewable energy and storage can provide all of the energy the U.S. needs.
He says an aim of using all renewables by 2030 is “an admirable goal” but would be difficult to pull off politically. He thinks it’s more realistic to get to 80 percent renewables by 2030, and get to 100 percent soon after.
“This is a solvable problem,” Jacobson said, adding that it must be solved because of the urgent need to reduce emissions that cause climate change.
Local politics may be the most challenging part of quickly making an all-renewable electricity system, Schauer said. To handle a big increase in wind, solar and storage, communities would need to be willing to host those projects along with the transmission lines that would move the electricity.
Interstate power lines are essential for moving electricity from places with the best solar and wind resources to the population centers. As more solar and wind farms are built, more lines will be needed. Schauer’s analysis assumes that there would be enough transmission capacity.
“I’m not here to say any of this is impossible, but there are some basic challenges to pull this off in a short period of time, mainly NIMBYism,” he said, referring to the not-in-by-backyard sentiment that fuels opposition to transmission lines.
Another important element is managing electricity demand, which is not discussed in the Wood Mackenzie report. Littell says some of the most promising ways to operate a cleaner grid involve using technology to reduce demand during peak periods and getting businesses to power down during times when the electricity supply is tight. Energy efficiency improvements have a role, as well.
Nuclear Power Would Lower Storage Needs
In addition to the 50-50 wind-solar projection, Schauer and co-author Brett Blankenship considered what would happen with other mixes of wind and solar power, and if existing nuclear power plants were considered as part of the mix.
By considering the role of nuclear plants, the report touches on a contentious debate among environmental advocates, some of whom want to see all nuclear plants closed because of concerns about safety and waste, and some who say nuclear power is an essential part of moving toward a carbon-free grid.
The Wood Mackenzie analysis shows that continuing to use nuclear power plants would dramatically decrease the amount of wind, solar and storage needed to get to a grid that no longer burns fossil fuels. For example, 228.9 gigawatts of storage would be needed, compared to 277.9 without the nuclear plants.
“If your goal is decarbonization, then nuclear gets you a lot farther than if you retire the nuclear,” Schauer said.
While the report focuses on a few cold days this year, Schauer has also done this type of analysis based on data for all of 2018, including summer heat waves. The lessons are similar, underscoring the scope of the work ahead for the people working for a cleaner grid.
“It gets even more challenging when you extrapolate to the entire year,” he said.
Public Utilities Commission says it has authority to hear dispute
La Plata Electric Association and other electrical co-ops may gain insight about buying out of a contract with their wholesale electrical supplier after the Colorado Public Utilities Commission ruled this week it can oversee a dispute about the buyout fee.
LPEA is exploring a buyout from its contract with Tri-State Generation and Transmission, in part, because the wholesaler caps how much renewable power LPEA can purchase from outside sources at 5 percent as part of a contract that does not expire until 2050. Tri-State is a nonprofit of 43 member electric cooperatives, including LPEA and Delta-Montrose Electric Association.
DMEA is interested in buying out of its contract because Tri-State’s prices have been rising since 2005, and, at the same time, electricity costs in general have fallen, said Virginia Harman, DMEA’s chief operating officer.
DMEA is also interested in developing more local renewable energy than allowed under its contract with Tri-State, she said.
“We are not looking for a free exit; we are looking for fair exit,” she said.
DMEA brought a case to the Public Utilities Commission last year because it felt the fee Tri-State demanded to buy out of its contract is unreasonable.
DMEA is formally asking the PUC to establish an exit fee that is “just, reasonable and nondiscriminatory,” according to a news release.
Becky Mashburn, spokeswoman for DMEA, declined to name the amount Tri-State is asking for the co-op to leave its contract.
Colorado’s PUC ruled Thursday it has the authority to determine whether Tri-State is charging DMEA a just and reasonable price to buy out of its contract, said Terry Bote, spokesman for the Department of Regulatory Agencies. A hearing about the buyout charge will be held in June, he said.
Tri-State had filed a motion to dismiss the case brought by DMEA, arguing the dispute about the exit fee is a contractual dispute.
The PUC rejected Tri-State’s argument, ruling the commission has jurisdiction over the buyout charge dispute because it is a statutory issue, he said.
“The world will be moving away from fossil fuel production,” David Gutzler, a professor at the University of New Mexico and member of the Intergovernmental Panel on Climate Change, told members of the House Energy, Environment and Natural Resources Committee.
Gutzler went on to paint a stark picture of New Mexico in a changing climate.
The mountains outside Albuquerque will look like the mountains outside El Paso by the end of the century if current trends continue, he said.
There will not be any snowpack in the mountains above Santa Fe by the end of the century, Gutzler added.
We have already seen more land burned by wildfires, partly because of changes in forest management and partly because of climate change, Gutzler said.
Water supply will be negatively affected in what is already an arid state, he said.
“It’s real. It’s happening. We see it in the data. … This is not hypothetical in any way. This is real and we would be foolish to ignore it,” Gutzler said.
The professor warned lawmakers that the state must get serious about greenhouse gas emissions now by expanding clean energy sources and mitigating the societal costs of moving away from fossil fuels.
That cost, though, will be a sticking point for Republicans. Many of them represent southeastern New Mexico and the Four Corners, where oil and mining are big industries.