AZ Tech Council Head Outlines COVID Recovery Path Driven by “Big Ideas”

Steve Zylstra, the president and CEO of the Arizona Technology Council authored a piece this week in the Phoenix Business Journal, which highlighted a path for Arizona to climb out of the economic downturn created by the COVID pandemic using Arizona’s “foundation as a technology and innovation hub driven by big ideas.”   Zylstra details how renewable energy can be a strong solution to restoring Arizona’s economic security and called on the Arizona Corporation Commission to modernize Arizona’s energy goals.  Zylstra wrote: 

“Our state must get on a fast track toward modernizing our energy rules. And to do so, the Arizona Technology Council is calling on the Arizona Corporation Commission to increase the state’s Renewable Energy Standard and Tariff, or REST, to at least 50% renewable energy by 2030 and 100% carbon-free by 2050. 

Technology plays a huge part in this endeavor. Arizona’s innovation ecosystem is making electric and autonomous vehicles, testing zero-emission semi-trucks, building the solar grid, installing energy-efficient devices, flying electric airplanes, and making global advancements in water technology, just to mention a few examples of the clean-energy space.”

The Western Way agrees that modernizing Arizona’s energy rules will help position Arizona to benefit from new innovations in the clean energy space at a time when economic development and new jobs are crucial.  Rural regions of the state stand to benefit from increased investments made by utilities to build out transmission infrastructure and new renewable facilities and advanced manufacturing from companies like Lucid Motors will mark a new chapter for Arizona’s economy.  The largest utilities in Arizona have already committed to aggressive clean and renewable energy goals, it is time for the Corporation Commission’s to agree on new Energy Rules. 

Costs for Renewables and Energy Storage Continue to Fall

Since the second half of 2019, the global levelized cost of electricity (LCOE) for onshore wind has fallen 9% to $44 a megawatt hour and 4% for utility scale PV to $50 a megawatt hour.  Solar PV and onshore wind are now the cheapest sources of new-build generation for at least 2/3’s of the global population, according to the latest research conducted by BloombergNEF (BNEF). 

 Costs are even cheaper in the United States where best in class projects for wind can achieve a levelized cost of $26 a megawatt hour, excluding tax-credit subsidies. On average, onshore wind in the U.S. costs $37 a megawatt hour, a steep decline from being priced at over $100 a ten years ago.  A decade ago solar was priced at more than $300 a megawatt hour. 

“On current trends, the LCOE of best-in-class solar and wind projects will be pushing below $20/MWh this side of 2030. A decade ago, solar generation costs were well above $300, while onshore wind power hovered above $100/MWh. Today the best solar projects in Chile, the Middle-East and China, or wind projects in Brazil, the U.S. and India, can achieve less than $30/MWh. And there are plenty of innovations in the pipeline that will drive down costs further,” lead author of the BNEF report Tifenn Brandily noted.

The benchmark LCOE for battery storage is also dropping fast, it now stands at $150 a megawatt hour for four hour duration.  This is half the price it was from just two years ago.  Battery storage is now the cheapest new peaking power technology in countries that import gas, including Europe, China, and Japan. 

Black Hills Energy Receives Lowest Price Offerings Ever in a Competitive Solicitation

Black Hills Energy submitted a report to the Colorado Public Utilities Commission this week summarizing bids received for its Renewable Advantage plan.  The plan will double the company’s renewable energy portfolio up to 65% by 2023 and result in cost savings for rate payers.  The 30-day report submitted to the PUC provided an overview of the utility’s competitive bidding process to build out 200 MW of wind, solar, and storage to be built in Pueblo County, Colorado. 

Black Hills reported that they received 54 bids from 25 different bidders ranging from developers located locally in Southern Colorado and throughout the country.  The report provided a median bid summary which showed an impressively low price of $22.25 per MWH for solar and $6.50 per kW/month for storage of all durations.    

“The response to our Renewable Advantage solicitation has been outstanding,” said Vance Crocker, Black Hills Energy’s vice president in Southern Colorado. “We received the lowest price offerings we’ve ever received in a competitive solicitation, an affirmation that Renewable Advantage is the right plan and the right time to secure long-term cost savings for our customers through lower power supply costs.”

SP Global Market Intelligence noted earlier this year that the falling cost in solar farms and lithium-ion batteries has produced a “dynamic new hybrid resource capable of providing energy from the sun after dark and potentially reshaping America’s power mix in the 2020’s.”  Just two years ago, Xcel Energy reported record low solar plus storage bids of $36/MWh. 

 The fast falling prices in solar plus storage projects have seen lead to a big demand in these projects from utilities and companies across the Western United States.  Buyers like Arizona Public Service Co., Glendale Water & Power, Google LLC, the Los Angeles Department of Water and Power, NV Energy Inc. Portland General Electric Co., Salt River Project, Xcel Energy Inc., and numerous community choice aggregators are locking in the low prices for consumers and investing millions into their state and local economies.   

Arizona Corporation Commissioner Lea Marquez Peterson Advocates Policy Requiring 100% Clean Energy by 2050

The Arizona Corporation Commission has been working to develop a new policy on clean energy rules for the past several years, but progress has been slow. Arizona’s current renewable energy standard, set by the Arizona Corporation Commission back in 2006, requires regulated electric utilities in Arizona to generate 15 percent of their energy from renewable sources by 2025. While Arizona’s standards may have been competitive when adopted, Arizona has since fallen behind neighboring western states. And while Arizona consumers want more renewable energy adoption—and Arizona’s largest regulated utilities are already working to voluntarily commit to more robust clean energy goals of their own—the Commission has been unable to come together to adopt updated rules. 

Finally, there are signs of positive forward progress. At last week’s Corporation Commission workshop, Chairman Bob Burns called on his fellow commissioners to submit their positions on the state’s energy rules into the docket so they Corporation Commission staff could move forward with new policies. As a result, Commissioner Lea Marquez Peterson issued a letter calling on the Corporation Commission to pass a policy that would require regulated electric utilities to generate 100 percent of their power from clean energy resources by 2050, explaining:

Adopting a 100 percent clean energy policy today will send a clear and unambiguous signal to utilities, and current and future customers, that Arizona is moving forward with a cleaner and more affordable energy future, while allowing data, free-market principles and least-cost energy resources guide our utilities on how to get there.

Commissioner Peterson’s approach is a sound one. By setting a clear clean energy goal as an official policy of the Corporation Commission now and a commitment to working out the details of how Arizona will achieve that goal over the coming months and years, the Arizona Corporation Commission will provide the long-term market certainty necessary to drive technology and innovation in the energy sector. It will also spur critical economic development efforts and reflect what Arizonans want to see from their utilities and regulators.

President Trump Calls on Congress to Fully and Permanently Fund LWCF

Following in the conservation minded footsteps of Theodore Roosevelt, today President Trump made a historic request for Congress to fully and permanently fund the Land and Water Conservation Fund.

Via tweet, President Trump offered high praise to Western Senators Steve Daines (R-MT) and Cory Gardner (R-CO) for their hard work in pushing for permanent funding of the Land and Water Conservation Fund.

Then hours later, President Trump followed up with a concise and clear request for Congress to send him a permanent LWCF funding bill, which he would sign.

President Trumps support offers a historic opportunity for our country’s national parks and public lands.

In securing President Trump’s support, Senators Gardner and Daines released the following statements:

“This is a great day for the future of public lands in Colorado and the country – we are proud to announce that we have secured the President’s support to provide full and permanent funding for the Land and Water Conservation Fund and address the maintenance backlog at our national parks,” said Senator Gardner. “Last year we were successful in permanently reauthorizing the LWCF, the crown jewel of conservation programs, and I have been fighting ever since to make funding permanent. The LWCF supports projects in Colorado and all across our country at no cost to the taxpayer, and fighting every year to figure out how much money the program will receive doesn’t provide the long-term planning certainty that our outdoor and conservation community deserves. I thank the President for his support, and I encourage all my colleagues in Congress to support full and permanent funding of the LWCF so future generations will have access to our great outdoors.”

“The Land and Water Conservation Fund is a critical conservation program that protects public access to public lands and our Montana way of life,”said Senator Daines. “We united a divided Congress last year when we got permanent authorization of the program signed into law. Now, we must provide full, mandatory funding for this important, bipartisan program. We also need to come together and restore our national parks by addressing the growing maintenance backlog. I’m thankful to have President Trump’s support and look forward to getting these major conservation priorities signed into law for future generations of Montanans.”

Utah Legislature Leads on EV Infrastructure

Driven by concern for air quality issues and to ensure adoption of new technologies, legislators in Utah are focusing on several electric vehicle infrastructure and tax credit bills this session.  Proving once again that Utah is a leader in crafting commonsense policy solutions that help the environment and grow the economy, three bills in various stages at the Capitol include:

• HB-259 EV Charging Network  (Rep. Robert Spendlove and Sen. Buxton).  The bill requires the Department of Transportation to work with the private sector to develop a statewide electric vehicle charging network.  The plan would ensure the strategic deployment of charging infrastructure along the state’s highway system, ensuring charging options available in 50 mile increments. The legislation is a logical approach to building out infrastructure across the state and could serve as a model for other western states. 

• HB-396 EV Charging Infrastructure Amendments (Rep. Lowry Snow).  This legislation would allow the PSC to authorize Rocky Mountain Power to spend $50 million in an initial investment to create a vehicle charging infrastructure program in Utah. 

• SB-77 Electric Energy Related Tax Credit (Sen. Kitchen and Rep. Peterson).  This bill creates a tax credit for commercial electric or hydrogen powered trucks and energy storage assets.  The bill authorizes up to $5 million in tax credits for heavy duty commercial trucks the businesses or individuals may claim.

Enterprise Zone Extension will Help Boost Rural Colorado

HB20-1299, was recently introduced at the Colorado legislature.  The bi-partisan bill would extend the state's current Enterprise Zone tax credit incentive for renewable investment projects until 2024.  This is an important piece of tax policy to continue development of renewable projects in Colorado's eastern plains.  These projects not only boost local government budgets through tax payments but provide substantial lease payments to landowners.   

In 2016, TWW and Pro-15, issued a report, The Benefits of the Rural Renewable Energy Industry in Eastern Colorado. The findings of the report directly illustrate the importance of HB-1299. The report found that:

• The rural renewables sector employs 4,250 workers in eastern Colorado.

• From the 2000 to 2016 period, the total direct and indirect economic benefit of constructing renewable energy facilities resulted in $2.7 billion.

• Landowners benefited from the $7.5 million annually in lease payments of wind farms.

• In 2016 alone, the total direct and indirect economic benefit of these facilities was an estimated $138.7 million, produced by 960 employees.

The enterprise zone tax credit that HB-1299 intends to expand to 2024, is credited with helping secure the previous growth in renewables noted above and will help unleash the next stage of investment in Colorado.

APS Commits to be 100% Carbon Free by 2050

Arizona’s largest utility, Arizona Public Service, (APS) made a major announcement yesterday on its future energy mix and carbon reduction goals.  APS announced it plans to reach 100% clean energy, with zero carbon emissions, by 2050.  In the near-term, APS plans on generating 65% clean energy by 2030 with 45% of their energy portfolio coming from renewable energy sources.  Currently APS generates 13% of its electricity from renewable sources.  The plan will rely on APS’s Palo Verde Nuclear generating plant which currently contributes 25% of the company’s energy portfolio, that is carbon free.  APS will also remove all of its coal generation from its portfolio by 2031.

APS CEO Jeff Guldner, who became the head of the company last November, said: 

"This is an important day for APS, our customers and Arizona. Our clean energy plan will be guided by sound science, and will encourage market-based solutions to climate issues. Through increased collaboration with our customers, regulators and other stakeholders, we expect to achieve environmental and economic gains without undermining our commitment to affordable, reliable service.”

Guldner noted that getting to the 100% goal would require a multifaceted approach including continued modernization of the grid, development of new energy and storage technologies, cooperation with policy makers, and participation in regional energy markets.  APS believes that the new goals will send an important market signal to scientists and entrepreneurs developing new technologies that will be needed in the transition. 

APS joins other Arizona utilities to voluntarily increase clean energy beyond the state RPS.  Last year, Salt River Project (SRP), announced goals for reducing CO2 emitted by 62% from 2005 levels by 2035 and by 90% by 2050.  Tuscan Electric Power (TEP) plans to generate 30% of its electricity from renewables by 2030.  APS also joins at least six other major utilities from the West and other parts of the country that have recently committed to goal of 100 percent clean energy.  These utilities have pledged similar carbon reduction timelines of 100% reductions by 2050 or sooner: Avista, Duke Energy, Green Mountain Power, Idaho Power, Public Service Company of New Mexico, and Xcel Energy.

“Our commitment is to maintain a leadership role in shaping a forward-thinking, healthy and prosperous Arizona where people can build a better life,” said Guldner. “We believe this initiative will encourage economic development in clean and innovative industries, create thousands of jobs and advance a healthy environment. Now comes the hard work of making it happen, which we are excited to carry out with others dedicated to securing a bright future for Arizona.”

Trump Administration Set to Approve Largest Solar Project in the Country

The Bureau of Land Management indicated they are close to approving the largest solar project in the country. NV Energy’s Gemini Solar-plus-storage project will be a 690 MW facility that will also include 380 MW of 4 hour battery storage.

The BLM released its final environmental impact statement for the project that is estimated to cost $1 billion dollars. The project is located on federal land near Las Vegas and will yield solar plus storage rates around $38.44 per megawatt hour under a 25 year contract. This will be the largest solar farm in the country overtaking a 579 MW solar farm in souther California.

"The proposed Gemini Solar Project would represent a significant increase in renewable energy capacity for Nevada and the West," BLM Southern Nevada District Manager Tim Smith said. "The BLM actively supports the Department of the Interior’s America First Energy Plan, an ‘all of the above’ strategy which supports energy development on public lands."

The project is part of NV Energy’s IRP that calls for 1,190 MW of solar and storage to be built in Nevada. Three other projects have been approved by the Nevada PUC and are expected to begin operation by 2024.

The rapid growth in large scale solar utility projects will have a significant economic impact for counties and towns near the projects. In a report published last year calculating the economic impact of Nevada’s rural renewables, TWW found that 29 rural renewable projects built from 2006 to 2017 resulted in:

• $7.9 billion contributed to the Nevada economy;

• 12,056 Nevada jobs;

• $947.3 million in wages to paid to Nevada employees; and

• $152.3 million in state and local tax revenues benefiting Nevada.

End of Year Federal Spending Agreement is a Win for Western States

On December 19th, Congress and President Trump agreed on a federal spending package that will fund the federal government through the end of September 2020.   The spending package was the result of bi-partisan compromise to avoid another government shutdown.   The package contained numerous priorities from Western States members of Congress that will have a direct impact on rural economies and help advance energy and water infrastructure development in the West, including: 

• The Land and Water Conservation Fund (LWCF) was funded at the highest level in 15 years, at $495 million, an increase of $60 million from last year. 

• The Payment in Lieu of Taxes (PILT) program was full funded at $500 million.

• The Energy and Water Development section of the package provides $8.343 billion in total funding, a $3.7 billion increase from previous funding levels and includes:

  • Funding as needed for the Bureau of Reclamation to assist Colorado River state in implementing the Drought Contingency Plans.

  • Significant funding for grid modernization, storage, and cyber research development.

  • Record funding of $425 million for the Advanced Research Projects Agency – Energy (ARPA-E)

  • $20 million for the Central Utah Project, which provides water for irrigation, municipal, recreation and industrial uses.

  • Funding for several USACE projects that are important to Arizona, including: $2.9 million for Alamo Lake State Park, $1.2 million for the Painted Rock Dam in Gila Bend, and $559,000 for the Whitlow Ranch Dam in Queen Valley.

Sen. Cory Gardner (CO) saw many of his priorities included in the funding package and said:

“I’m proud that this funding package ties together many of the efforts that I’ve championed for Colorado this year. These efforts will lower health care costs in Colorado, provide vital resources for our military service members, and help future generations enjoy Colorado’s public lands by increasing funding for the Land and Water Conservation Fund. This bill will have a direct impact on Colorado communities by fully funding critical services for counties with large amounts of federal land and supporting innovative energy research projects in Colorado.” 

Gardner bill would give a needed boost to renewable energy storage

-By Greg Brohy

(The piece was originally published by ColoradoPolitics on December 13, 2019)

An energy renaissance is underway across the country, including here in Colorado, where innovative sectors like wind and solar are more than doubling job growth compared to other industries and now employ nearly 60,000 Coloradans. The electricity from renewables in our state has more than doubled since 2010, and accounts for close to 25 percent of our net generation. The main force at work here is Colorado’s nearly 2,000 wind turbines, which produce the majority of our renewable energy in-state. 

The next few years will see even more progress in these areas, but these amazing new methods of generating energy have their limitations, as well. Critics of renewable will be quick to point out that wind turbines only work when the wind is blowing — and they aren’t wrong. Fortunately, the renewable energy sector will soon have a better answer to quiet those critics: energy storage.

One of the most important steps utilizing additional renewables is the ability to store that energy for when it’s needed the most. By using advanced energy storage, our energy sector can decouple energy generation with its time of use. This simple feature creates a truly competitive renewables industry. 

Although it is unclear when grid-scale energy storage will be available, Colorado’s own U.S. Sen. Cory Gardner has introduced the Energy Storage Tax Incentive and Deployment Act (S.1142), which will harness the financing power of the 30 percent Investment Tax Credit (ITC) that has already successfully jumpstarted the national solar power industry. We should pivot the success of the ITC to encompass advanced energy storage technology — and by doing so, we will effectively strengthen our domestic energy sector as a whole. 

Energy storage is a technology-neutral approach, meaning that it is a useful tool regardless of the power source. From wind and solar to natural gas and biofuel, all sources of energy will benefit from better energy storage on the market.

S.1142 does not modify the expiration of existing tax incentives; it adds energy storage as an eligible tax credit while also specifying that energy storage technologies can draw from across electric grid technologies. Doing so will enhance grid efficiency and resilience while creating more jobs and capital formation. Congress estimates that an energy storage ITC would be much lower in cost than many other tax incentives.  And an energy storage ITC would pay for itself through the vastly improved energy efficiency that it would bring to the industry. Gardner’s legislation would create a renewed focus on energy storage, which would alleviate the tensions of peak power usage — a significant expense for many ratepayers across the country. Using energy storage, valuable electricity could be easily accessed at peak times. This lone factor is worth millions in reduced bills, and it is well within reach. 

Finally, energy storage is a good job creator. Over 70,000 people in the U.S. are currently employed by the energy storage industry. With the energy storage ITC, more people will be able to find work in that field. And because energy storage strengthens the viability of other energy technologies, those industries will also benefit from increased job growth due to expanding the ITC.

An energy storage ITC is a good deal for American jobs and consumers. And it’s a good deal for voters, who want to see their taxes go toward initiatives that will have real and immediate impacts in their local communities. Gardner should be applauded.

In Colorado, conservative and pro-oil and gas communities support renewables, too

By Rod Pelton and Greg Brophy

(This opinion piece first ran in The Colorado Sun on December 15, 2019.)

If you believe some politicians and media pundits, the way we produce energy in the United States is extremely controversial.

To hear them tell it, some people are wedded to fossil fuels and other people only want renewables. The two sides are locked in vicious political combat and the idea of them ever working together is impossible, according to the political and media elite.

None of that is true, of course, especially here in the eastern Colorado. Yes, we produce fossil fuels, but we are also leading the nation in a transition to renewable energy sources.

In fact, in many cases the communities most supportive of renewable energy are also big supporters of traditional energy sources, like oil and natural gas.

If you want proof, just read a new report from the National Renewable Energy Laboratory (NREL) in Golden. The report details the economic impact from a new 600-megawatt wind farm on Colorado’s Eastern Plains.

The massive wind farm spans four rural counties – Elbert, Kit Carson, Lincoln and Cheyenne – and was developed by state’s largest utility company, Xcel Energy.

The Rush Creek Wind Farm is part of Xcel Energy’s plan to reduce carbon emissions 80% by 2030 and then become 100% carbon free by 2050.

However, rather than focus on environmental issues, we’d like to point out that the NREL report tells the story of the wind farm’s significant economic benefits. For example, during the construction phase, the Rush Creek Wind Farm supported 620 jobs in the four counties where the project is located and increased the region’s economic output by $78 million.

The NREL report also examined the supply chain impact of the project on the statewide economy, because all of the wind turbine blades, towers and nacelles were built in Colorado at facilities owned by Vestas Energy. Statewide, Rush Creek’s construction supported 2,970 jobs while adding $570 million in economic output.

With the construction phase complete, the local economy will see 47 new jobs and $9 million in economic output supported by the wind farm every year, according to NREL. Statewide, the project’s annual economic footprint will be 180 jobs and $33 million in economic output.

Those jobs, by the way, will have average salaries of about $64,000 per year, well above the state average. Next, there’s tax revenue. NREL estimates Rush Creek will generate $62.5 million in property taxes over the next 25 years. These revenues will support public schools, libraries, fire departments and other essential services – and the estimates do not include millions of dollars in additional permitting fees and sales and use taxes tied to the project.

The NREL report also examines the lease payments due to farmers, ranchers and other property owners with turbines on their land. Those lease payments are estimated to be worth $45 million over the life of the project, which will “help farmers and ranchers maintain financial stability when commodity prices are low or bad weather hits the region.”

Overall, the authors of the report found that 72% of locals interviewed support the development of wind energy in their community. Likewise, 67% of local businesses experienced a positive impact from the project, according to the report.

These findings are remarkable enough on their own. But the Rush Creek story is even more noteworthy because this large-scale wind farm was built in a conservative corner of the state that strongly supports oil and natural gas development. 

Consider the following: As a group, Elbert, Kit Carson, Lincoln and Cheyenne counties voted Republican in last year’s gubernatorial election in Colorado by a margin of 74% to 20%. At the same time, these four counties voted no on Proposition 112 – a ballot measure that would have all but banned oil and gas development in Colorado – by 76% to 24%. 

Elbert, Kit Carson, Lincoln and Cheyenne counties also produced over 1.5 million barrels of oil and more than half a million cubic feet of natural gas last year, according to state data. And they did it while fully embracing the expansion of renewable energy in Colorado. 

Because here in eastern Colorado, “all of the above” isn’t a political slogan – it’s just the way we do things. It’s also an example the rest of the country would do well to follow.

Rod Pelton (R-Cheyenne Wells) represents House District 65.  He is a farmer and rancher. 

Greg Brophy is a former state legislator from the Eastern Plains and the Colorado director of The Western Way.

AZ Business Leaders and TWW Discuss the Future of Energy

This week, The Western Way partnered with Greater Phoenix Leadership and the CNA Military Advisory Board to host a panel discussion with industry leaders from around the state on the future of energy in Arizona.

Anchoring the discussion was a presentation by Vice Admiral Lee Gunn, USN (Ret.), a member of the Military Advisory Board’s small and elite group of retired three- and four-star officers from all branches of the U.S. military, focusing on the national security imperative of adopting clean and advanced energy technologies.

The panel discussion was moderated by Pat Graham, Arizona Director of The Nature Conservancy, and in addition to Vice Admiral Gunn, USN (Ret.) featured John Coggins, Associate General Manager and Chief Power System Executive at Salt River Project, one of Arizona’s largest utilities; Glenn Hamer, President and C.E.O. of the Arizona Chamber of Commerce and Industry; and Representative Steve Pierce, a long-standing member of Arizona’s state legislature.

An impressive cross-section of Arizona business leaders and stakeholders attended the event, including representatives from Arizona’s utilities, public university system, and some of the state’s largest businesses.

The robust discussion covered topics ranging from how to increase deployment and adoption of renewable energy technologies across the state, including in rural areas, to opportunities for private sector innovation, participation and partnership in advance energy adoption, and how to motivate lawmakers to support the new energy infrastructure that makes the grid more reliable.

The panel discussion was part of a two-day visit by Vice Admiral Gunn, USN (Ret.) to Arizona, in which The Western Way coordinated presentations and discussions with the Arizona Corporation Commission, current and former state government officials, and business leaders that emphasized the need to ensure grid security and how Arizona can take advantage of its domestic energy resources. 

Gardner Delivers in Senate for Commonsense Conservation Measures

On November 19th, the Senate Energy and Natural Resources Committee passed two pieces of legislation sponsored by Sen. Cory Gardner (CO) that will permanently fund the Land and Water Conservation Fund (LWCF) and invest in restoring national parks across the country.   The Land and Water Conservation Fund Permanent Funding Act, S. 1081, passed through the committee by a vote of 13-7.  Sen. Gardner is the lead original cosponsor of S. 1081 along with bill sponsor Sen. Joe Manchin (D-WV).  The committee also passed Sen. Gardner’s Restore Our Parks Act, S. 500, to address the $12 billion park maintenance backlog and to establish the National Park Service Legacy Restoration Fund, by a vote of 15-5. 

Moving these pieces of legislation through committee is a major accomplishment for Sen. Gardner and various sportsmen, outdoor recreation, and conservation groups from across the country gave praise to the Senator and the Committee for moving these important pieces of legislation. 

 “We at BHA thank Sen. Gardner for his leadership in introducing and advancing legislation that dedicates $900 million to the Land and Water Conservation Fund,” said John Gale, Conservation Director of Backcountry Hunters & Anglers (BHA). “Currently, more than 435,000 acres of state trust lands and 18,000 acres of public lands in Colorado are inaccessible to hunters, anglers and other outdoor recreationists. LWCF dollars could help enhance sportsmen’s access in Colorado by acquiring lands and collaborating with local stakeholders.”

"The Congressional Sportsmen's Foundation applauds the Senate Energy and Natural Resources Committee and members of the Congressional Sportsmen's Caucus for voting to advance S. 1081 to provide permanent and dedicated funding to the Land and Water Conservation Fund (LWCF)," said Jeff Crane, President of the Congressional Sportsmen's Foundation. “Permanently reauthorized earlier this year as part of S.47, LWCF also includes the Making Public Lands Public initiative that requires a portion of LWCF funds be set aside specifically for the purpose of increasing public access for America's sportsmen and women, which makes this program critically important to receive dedicated funding.”

 “Today’s Senate Committee vote brings the LWCF Permanent Funding Act one step closer to becoming a reality,” said Kristine Stratton, National Recreation and Park Association (NRPA) President and CEO. “NRPA thanks Senators Joe Manchin (D-WV), Cory Gardner (R-CO) Maria Cantwell (D-WA) and Richard Burr (R-NC) for taking action and introducing a bill to fully fund LWCF, an important piece of funding our member agencies rely on to help provide access to parks and recreational opportunities in communities across the country. We urge members of Congress to join the House and Senate Committees in support of this bill because everyone deserves a great park.”

“With bipartisan support for LWCF and the Restore Our Parks Act from members like Senator Gardner we are one giant leap closer to providing more wildlife habitat, access and suitable infrastructure for recreation on our shared public lands and waters. Whether you ski, snowmobile, dive, ATV, hike, bike, motorcycle, fish, camp or hunt, these bills will open up new and better opportunities to enjoy safe and scenic outdoor experiences today, and for generations to come,” said Jessica Wahl, Outdoor Recreation Roundtable Executive Director.

“From Rocky Mountain to Mesa Verde, America’s national parks are falling into disrepair due to billions of dollars in needed repairs and upkeep, while at the same time facing constant threats of development from within their borders,” said Theresa Pierno, President and CEO for National Parks Conservation Association. “Our parks need and deserve dedicated funding to address their growing maintenance needs and to help protect additional lands through the Land and Water Conservation Fund. Thanks to congressional champions like Senator Gardner and strong bipartisan support, these two important park bills are moving forward to ensure our parks have the resources they need, that will benefit park visitors and communities across the country.”

SRP Announces Largest Solar Battery Storage Project in Arizona

TWW congratulates Arizona’s SRP for recently announcing the purchase of the state’s largest solar powered battery project.  The Sonoran Energy Center will be an approximately 250-megawatt system with the solar array charging a 1 gigawatt-hour energy storage system and will be built in Little Rainbow Valley, south of Buckeye.  SRP also announced the purchase of a second solar plus storage facility, the Storey Energy Center will be an approximately 88-megawatt solar and energy storage system and is scheduled to be built south of Coolidge.

 “These integrated solar and storage plants will allow SRP to meet its summer peak demand, reduce carbon emissions, and provide clean energy to our customers while optimizing energy output using state-of-the-art battery technology,” said SRP General Manager and Chief Executive Officer Mike Hummel. “In addition, these plants will get SRP more than 60 percent toward our goal of adding 1,000 megawatts of new utility-scale, solar energy to its system by the end of fiscal year 2025.”

Combined, these plants will generate enough solar energy to power approximately 100,000 homes and will store excess energy in state-of-the-art battery storage systems that will be available to customers during the peak energy usage period when demand is at its highest.

SRP used a transparent “All-Source” solicitation to select the best contract for the project, awarding it to NextEra Energy Resources.  Earlier this year, TWW released a study on the economic impact of similar solar plus storage project in Arizona and found that these projects lead to significant economic development opportunities for the state by providing jobs and millions in local and state tax revenues.  The study found that rural renewable projects in Arizona annually contribute an estimated $63 million in economic activity and sustain over 700 jobs with combined wages of over $33 million.  The facilities also contribute nearly $1 million in annual property tax revenue benefiting Arizona schools. 

“We are pleased to help SRP serve its customers with more clean, affordable, renewable energy, combined with the flexibility of battery energy storage systems,” said Matt Handel, vice president of development for NextEra Energy Resources, the world’s largest generator of renewable energy. “These projects will also provide a significant economic boost for their local communities and for Arizona, including good jobs and millions of dollars in additional tax revenue.”

Click here for a video from SRP detailing the projects.

TWW Presents at Western Governor’s Association’s Reimagining the Rural West Initiative

TWW’s Colorado State Director, Greg Brophy participated in Western Governor’s Association’s most recent workshop focused on North Dakota Governor and WGA Chair Doug Burgum’s Reimaging the Rural West Initiative.  Brophy spoke on a panel focused on Emerging Opportunities in Energy at a workshop for the initiative held in Santa Fe, NM on November 4th to 5th. 

The panel discussed emerging opportunities for rural communities to capitalize on their natural resources and the practices, policies and partnerships that can foster energy research, technology and industries.   Brophy was joined by Jeff Edwards, Executive Director, Utah Advanced Materials & Manufacturing Initiative and Melissa Fox, Program Director, Applied Energy Programs, Los Alamos National Laboratory.

Brophy highlighted The Western Way’s recent work regarding the economic impacts and development opportunities that rural renewables have in western states.  Offering the findings from TWW’s rural renewable economic impact studies in Arizona, Colorado, and Nevada as the potential for rural communities in other Western states to benefit from an “all of the above” energy development strategy. 

The next workshop as part of the Reimagining the Rural West Initiative will take palace on December 3rd with Idaho’s Gov. Brad Little will hosting and delivering remarks during the in Post Falls, ID. Topics of discussion will include strategies to upgrade energy efficiency in rural areas, engage new communities in the outdoor recreation industry, and increase access to remote telehealth services.

Click here to watch Greg Brophy’s panel presentation at the Nov. 4th and 5th Emerging Opportunities in Energy Workshop.

TWW Applauds Senators for Taking Action to Fully Fund LWCF

TWW was glad to see strong bi-partisan support from Western Senators today in introducing an amendment to the FY2020 Appropriations budget for the Department of Interior.  The amendment sponsored by Senators Cory Gardner (CO), Michael Bennet (CO), Martin Heinrich (NM) Steve Daines (MT), Jon Tester, Richard Burr (NC), Susan Collins (ME) and Jeanne Shaheen (NH), would fully fund the Land and Water Conservation Fund (LWCF) at it’s maximum authorization level of $900 million which has only happened twice in history. 

The strong bi-partisan support of the amendment shows that the wide support in the Senate for full funding.  Senate leadership should take up the issue this session and make full funding for LWCF a reality. 

Comments from the Senators on the importance of the amendment are below:

“The Land and Water Conservation Fund is the crown jewel for conservation projects in Colorado, and now that we were successful in permanently reauthorizing the LWCF, the next step is to make the funding automatic,” said Senator Gardner. “While those conversations are ongoing, it is important to show that we are committed to fully funding the program, and that’s what this amendment does. Our beautiful public lands rely on this critical conservation program, and it’s time for Congress to fully and permanently fund it.”

“I have been a proud advocate for the Land and Water Conservation Fund, America’s most successful conservation program, for more than a decade,” said Senator Burr. “It’s our responsibility to preserve our nation’s natural landscapes for our children and grandchildren, and by fully funding this important program, at no cost to taxpayers, we can do just that. I appreciate Senator Gardner’s leadership in introducing this amendment and for my colleagues continued commitment to conserving our nation’s public lands.”

“After ten years, our work to permanently reauthorize LWCF paid off earlier this year with the passage of the lands package,” said Senator Bennet. “Now, we must fulfill our promise to the next generation of Americans by fully funding the program. This amendment will provide full funding for LWCF, ensuring the program reaches its full potential this year.”

“LWCF is a critical tool to preserve the Montana way of life and protect our public lands for future generations,” said Senator Daines. “I will continue fighting for full funding of LWCF through every avenue possible—including this bipartisan amendment.” 

TWW Calls for Transparency and All Source Competitive Bidding in Tri-State Energy Planning Rules

Today the Colorado Public Utilities Commission (PUC) heard public comments on resource planning rules for Tri-State Generation and Transmission.  This is an important process which will create the guidelines for how Tri-State’s next Electric Resource Plan is implemented.   TWW called on the PUC to ensure that the final ERP rules are fully transparent and ensure competitive all source bidding to make sure that Tri-State’s local cooperative members and ratepayers receive benefits from the lowest cost resources. 

More specifically with regard to transparency, TWW noted:

 TWW believes that a full transparency is required for a successful ERP process.  Tri-State recently announced its “Responsible Energy Plan” but it is unclear how this facilitated stakeholder process will be incorporated with current and past ERP stakeholder requests.  TWW trusts that the “Responsible Energy Plan” will follow the traditional ERP stakeholder process and will adhere to the PUC’s new ERP rules formed in this proceeding, as well as providing opportunities for local cooperative members to weigh-in on the plan.   

Full transparency is also needed with regard to the data and information that Tri-State will be submitting to the PUC for its ERP to fully understand the complicated demands and needs of the Tri-State system.  TWW agrees with United Power, in their comments to this proceeding on September 25, 2019, with respect to the need for disaggregated data and for disclosure of members that have left or will be leaving the system and members that are intending to move to partial contracts.  Submitting aggregated data on energy and demand forecasts would be worthless for planning purposes and could lead to significant miscalculations of Tri-State’s complicated and interconnected system.  3605(b) of the proposed Rule would require that Tri-State submit energy and demand forecasts on a disaggregated basis for all of the member cooperatives is key to providing a full understanding of the system needs and requirements during the planning process.   

The ERP rules should also require transparency around the debt levels that Tri-State maintains.  Moody’s Investor Service recently noted, that the situation with Tri-State and Delta-Montrose “exemplifies a situation where the [rural cooperative’s] interest does not align with the [Tri-State] creditors’ interest.”  TWW has noted the connection between Tri-State’s debt service requirements on its $3 billion in debt and the impact on rates paid by local cooperatives.[1]  A clearer picture of how the existing debt load impacts future resource decisions and rates would benefit rural cooperative rate payers. 

On the issue of all source competitive bidding, TWW noted how some of Tri-State’s past non-competitively bid resource acquisitions have led to large financial write-downs and that the Colorado PUC has had a successful recent experience with Xcel Energy’s Colorado Energy Plan, a competitive bidding plan which led to significant savings for ratepayers.  Rural ratepayers in the Tri-State system should be afforded the same cost savings derived from all source competitive bidding.

All source competitive bidding for all new resources should also be a requirement for Tri-State to follow.  TWW appreciates Tri-State’s comments to this proceeding from September 25, 2019, which noted that Tri-State has and will continue to conduct competitive bidding for renewable resources.  TWW believes that all source competitive bidding is crucial to ensuring that rate payers are protected, and that Tri-State’s write down of $93 million for the non-competitively sourced Holcomb Expansion are avoided in the future.  An all source competitive bidding process for all of Tri-State’s future resource acquisitions would ensure that Tri-State receives the most up to date market signals based on price and optimal generation resources.  

[1]See Blog Post: In Response to TWW, Tri-State Contradicts Own Testimony on ‘Cheaper Prices’ and ‘Death Spiral’. (2019). Retrieved at: http://www.thewesternway.org/tww-blog/tristateletter

Western States Governors Ducey, Herbert, and Little Recognize National Clean Energy Week

Governors Doug Ducey, Arizona; Gary Herbert, Utah; and Brad Little, Idaho all signed resolutions marking the week of September 23rd as National Clean Energy Week in their states.  TWW applauded the Governor’s commitment to an all of the above state energy policy that powers each of their state’s economy, utilizes domestic resources, and provides environmental benefits. 

Gov. Ducey highlighted the importance that the Palo Verde Nuclear Generating Station plays to Arizona’s emission free electricity generation and the fact that Arizona has more cumulative solar energy installed than almost any state in the country.

Governor Herbert noted how Utah’s “all of the above market-based approach” to energy policy has put Utah on the cutting edge of a growing renewable energy sector which is helping drive Utah’s economy. 

Governor Little detailed how 75% of Idaho’s utility-scale net electricity comes from renewable sources.  Governor Little also noted that Idaho is the fourth largest generator of hydroelectricity in the country, has some of the best geothermal production in the country, and that the Idaho National Laboratory is driving new innovations in energy research and development which benefit Idaho and the entire country. 

Senator Cory Gardner Named 2019 Clean Energy Champion

Citizens for Responsible Energy Solutions (CRES) named Colorado’s Senator Cory Gardner a 2019 Clean Energy Champion and was honored during National Clean Energy Week.  Sen. Gardner was praised for his record of delivering balanced, bipartisan solutions to environmental and conservation challenges. 

“As a member of the Senate Committee on Energy and Natural Resources, with jurisdiction over energy generation and the bulk power grid, it’s an honor to be selected to receive the Clean Energy Champion Award from Citizens for Responsible Energy Solutions,” said Senator Gardner. “By focusing on responsible energy development, energy reliability and affordability, and the environment, we have the potential to make a better life for all Americans and our nation more secure.”

While many Republicans have dodged difficult issues related to conservation and the environment, Sen. Gardner leaned in and took a critical leadership role to address these challenges head on.  Sen. Gardner has driven balanced solutions that not only improve the environment, but also support the U.S. economy. Sen. Gardner has driven bipartisan environment and conservation solutions at a time Washington, D.C., has virtually succumbed to partisan gridlock. 

Being honored as a 2019 Clean Energy Champion is just the latest example of recognition that Sen. Gardner has received for his pragmatic approach which has served Colorado and the nation well over the last five years.

Sen. Gardner’s record on clean energy and conservation issues is unmatched, here are some of the other recent highlights and praise for his record: 

• Sen. Gardner championed renewable energy before it was trendy. In 2015, Sen. Gardner was a leader in crafting a bipartisan agreement on tax credits for wind and solar (PTC & ITC) that would gradually ramp down, giving industry the certainty it needed to drive investments and make the renewable resource market competitive. Again in 2017, Sen. Gardner played a pivotal role in stopping proposed tax changes from wiping out the PTC and ITC. Today, Sen. Gardner is part of a bipartisan group of U.S. senators working toward the expansion of incentives for large-scale batteries and other energy storage projects. These efforts have resulted in renewable energy emerging as a cost-competitive resource that contributes to an all-of-the-above energy balance.

•  Sen. Gardner announced as 2018 U.S. wind champion. In 2018, Sen. Gardner was named U.S. Wind Champion for the 115th Congress by the American Wind Energy Association (AWEA). “The Senator fights tirelessly creating opportunity for Coloradans, crafting fair tax policy, strengthening energy security with transmission infrastructure, and securing funding for breakthrough wind power research at NREL,” said AWEA CEO Tom Kiernan.

•  Sen. Gardner demands climate response based on science. Sen. Gardner is a national leader for science-based research and technologies to combat climate change. In 2017, Sen. Gardner co-sponsored bipartisan legislation to shield scientific agencies from political interference — an effort that drew high praise from the scientific community. “We are gratified that these Senators have not only helped to advance Earth and space science but also have put aside partisanship to further sound science policy,” the American Geophysical Union said.

•  Sen. Gardner receives science champion award. In 2019, The Science Coalition presented Sen. Gardner with its distinguished Champion of Science Award, which honors leaders whose actions and votes consistently reflect their commitment to fundamental science research.

•  Sen. Gardner led the most significant conservation legislation in a decade. Sen. Gardner led a bipartisan effort to pass what The Washington Post described as “the most sweeping conservation legislation in a decade, protecting millions of acres of land and hundreds of miles of wild rivers across the country.” The legislation combined more than 100 different conservation bills and permanently reauthorized the Land and Water Conservation Fund (LWCF), which funds critical outdoor projects across America without any taxpayer dollars.

•  Sen. Gardner earned national parks award. The National Parks Conservation Association awarded Sen. Gardner with the National Park Heritage Award in 2019 to recognize his leadership on public lands and conservation issues.

Sen. Gardner’s accomplishments on environmental and conservation policy are objectively remarkable for a first-term U.S. senator. According to Georgetown University and the Lugar Center, Sen. Gardner is one of the top five most effective members for driving bipartisan solutions in the U.S. Senate.