AZ Corp Commission Joins Other State Regulators and Policy Makers Opposing FERC Petition

This week, the Arizona Corporation Commission joined dozens of other state regulators and policymakers to oppose a petition filed with the Federal Energy Regulatory Commission (FERC) seeking to bring net metering under federal jurisdiction. If granted, the petition, filed in April by a group out of New England, would upend two decades of legal and regulatory precedent, in effect taking away the power of the states to oversee their own tailored net metering policies and limit states’ ability to effectively manage their own energy portfolios.

The Arizona Corporation Commission recognized the importance of this issue, voting unanimously on June 11 to submit a letter in opposition to the petition. As the ACC pointed out in its June 15 letter, Arizona was one of the first states with a net metering policy, which, like programs now adopted across the country, allows retail electric customers to receive credit for self-generated electricity over the amount they use in a given billing cycle. Bringing the authority to regulate net metering under federal jurisdiction would upend these programs in Arizona and dozens of other states.

The proper authority for regulating energy policy lies with the states. As Arizona’s Corporation Commissioners stated in their letter, “States are in the best position to assess local conditions and make the types of determinations on cost allocations and retail rates that are the subject of [the petition].” Hopefully the FERC agrees.

Western States Legislators and TWW Lead the Way on Energy Federalism

State legislators from Arizona, Colorado, Nevada and Utah and The Western Way recently submitted comments to the Federal Energy Regulatory Commission, requesting that energy policy making stay at the state level and not be federalized.  The longstanding precedent of states having jurisdiction over their own energy policies was called into question by a petition submitted to FERC from the New England Ratepayers Association (NERA).  The April 14th NERA petition sought to move the authority to set net metering policies under federal FERC oversight. 

TWW’s Arizona Director Doran Miller noted why FERC should decline the NERA petition on the basis of states rights to set their own unique and effective energy policies:

“According to long-standing precedent, individual states have jurisdiction over their own energy policies. State regulators and elected officials who set state energy policies understand the resources and needs of their states and are accountable to voters.  Because no two states are the same, this ensures that each state’s energy policies are tailored, responsive, and effective.”

Moving the authority to regulate net metering to the FERC would, by contrast, impose a one-size-fits-all solution which would, by definition, fail to account for the unique make-up and characteristics of the various states.

State legislators from western states also weighed in with opposition to the filing from the perspective of elected officials responsible for energy making policies and directly accountable to voters.  

“By allowing net metering policy to continue to be set at the state level, you ensure that all stakeholders will continue to be represented. In contrast, stripping state regulators and policymakers of their jurisdiction over net metering will take away ratepayer’s ability to petition their local elected officials on this issue and could ultimately impact other state-controlled energy polices in the future.”

- Arizona State Representative Joanne Osborne - Full Comments

“Our country’s electric utility sector is changing at a dramatic rate due to technological innovation and market demand. This change will only accelerate and nimble state-based authority over major energy policies is necessary to navigate these changes. “

- Colorado State Senator Kevin Priola - Full Comments

“Nevada’s legislature, which is directly accountable to the citizens of the state, regularly engages in policymaking on energy and ratepayer issues.  Moving net-metering to FERC’s federal jurisdiction would take away rate payer’s ability to petition their local elected officials on this issue and could endanger long-term contracts that have been entered into between ratepayers and utilities.”  

- Nevada Assemblyman Tom Roberts - Full Comments

“Congress wrote the Federal Power Act “to be a complement to and in no sense a usurpation of State regulatory authority.” If FERC grants NERA’s petition, it would overturn long-held legal precedent and take away decision-making power that has long belonged to the states, including the authority to set rates, terms, and conditions for programs. “  

- Utah State Representative Stephen Handy - Full Comments

Western States Utilities Planning for an Extended Day-Ahead Energy Market

Stakeholders in Arizona and other western states are actively discussing how to expand the current voluntary Energy Imbalance Market (EIM) to an Extended Day-Ahead Market (EDAM)—a move that would significantly increase the emissions reductions and cost-savings that the current EIM is already generating. 

The EDAM concept is similar to the EIM in that it is voluntary, provides additional incremental benefits, and uses existing infrastructure. Rather than replace the EIM, EDAM would serve as an additional market service that would realize additional energy reductions and cost savings by optimizing dispatch from limited real-time trading to almost 100% of the Western energy market.

Two of Arizona’s largest utilities, Arizona Public Service and Salt River Project, are participants in the Western Energy Imbalance Market, and have already seen the benefits that participating in a regional energy market can generate. APS Vice President for Resource Management Brad Albert agrees, saying, "This evolution of the wholesale market can have even more benefits by optimizing transactions on a day-ahead basis and more cost-effectively integrating higher levels of renewables." According to a 2016 study, “a full regional marketplace could potentially deliver savings of $1.5 billion per year from optimized dispatch, shared transmission costs and reduced reserve needs.”

Before EDAM can be realized, however, important governance, transmission, and sufficiency issues must be resolved. For example, with respect to transmission, APS’s Brad Albert has acknowledged issues around transmission capacity and compensation, saying, "We're trying to move something complicated ahead because it will benefit our customers, but it will not be easy."

While we are unlikely to see EDAM in the near future, it is encouraging that stakeholders are actively working on innovative solutions to these critical components, and participants appear optimistic that they can ultimately be resolved.

NV Assemblyman Tom Roberts says big energy projects will help state bounce back from COVID-19

In a piece for the Elko Daily Free Press, Assemblyman Tom Robert (R-Las Vegas) highlighted how the recent approval of the Gemini Solar project by the Trump Administration is the type of game-changing infrastructure projects Nevada needs to put people back to work and jumpstart the economy. 

The full piece from Assemblyman Roberts is below as it originally appeared in the Elko Daily Free Press on May 21, 2020:   

Big energy projects will help Nevada bounce back from COVID-19 lockdown

As Nevada and the rest of the country recovers from the COVID-19 pandemic and lockdown, every level of government – federal, state and local – should be doing everything possible to create jobs and jumpstart the economy.

The Trump administration, Congress, and the Federal Reserve have already injected trillions of dollars into the economy to offset some of the impacts of the COVID-19 shutdown. But a strong recovery will also require huge, game-changing infrastructure projects that put people to work in the short term and make our economy stronger over the long haul.

Remember, more than 440,000 Nevadans have lost their jobs during the COVID-19 lockdown. To rebound stronger than ever, we will need all of those jobs back – and then some. For leaders in government and the private sector, this means one thing: Think big.

For a great example of thinking big, look no further than the Trump administration’s recent approval of the Gemini Solar Project, to be built roughly 30 miles northeast of Las Vegas. This $1.1 billion clean energy project is massive – covering up to 7,100 acres or more than 11 square miles. For scale, that’s 2.5 times the size of McCarran International Airport.

The Trump administration’s approval of the Gemini project was necessary because it will be built on federal land. According to the Department of the Interior, Gemini will create an average of 500 to 700 construction jobs over the next two years and support a further 1,100 jobs throughout the local community. More than $700 million in wages and economic output will be generated during the construction phase, which is expected to last until 2022.

And with 690 megawatts of electric generating capacity, Gemini is the largest ever solar project in U.S. history – and the eighth biggest solar facility in the world.

“Our economic resurgence will rely on getting America back to work, and this project delivers on that objective,” Interior Secretary David Bernhardt said when the approval was announced in early May.

When finished, Gemini will also be a vital piece of infrastructure for Nevada, adding both capacity and stability to our power grid. In addition to producing clean, carbon-free electricity from the sun, Gemini will also have another 380 megawatts of battery storage. This breakthrough technology will allow the facility to generate electricity during the middle of the day and keep it stored for several hours until it’s needed during the early evening, when power demand surges all across Nevada.

The Gemini project will take Nevada’s national leadership on clean energy to a new level.

We already generate more than 25 percent of our electricity from solar and other renewable sources, according to the U.S. Energy Information Administration. Our existing renewable power infrastructure has contributed $7.9 billion in economic activity and generated more than 12,000 jobs since 2006, according to a joint report from the Carson Valley Chamber of Commerce and The Western Way, a think tank that promotes free market solutions to environmental challenges. Investment and job creation in the renewable energy sector has also generated more than $150 million in taxes for Nevada, with most revenue going to K-12 public schools and local governments.

Before COVID-19, Nevada’s energy sector played an important role in our economy. Coming out of the lockdown, developing our own energy resources can help us emerge from this crisis stronger than we were before.

In this effort, we have a strong partner in President Trump. Federal lands play a critical role in the Trump administration’s doctrine of energy dominance, which calls for increased domestic production from all sources – conventional and renewable – to maintain our independence from hostile energy-producing nations, like Saudi Arabia and Russia.

This is a major opportunity for Nevada, because in addition to abundant solar energy resources, we also have the highest percentage of federal land of any state in the nation.

Federal lands, clean energy, national security, job creation, and stronger infrastructure: The Gemini project combines them all. It is exactly the kind of project – and the kind of thinking – we need in these challenging times.

Let’s work together to make more projects like this one happen and bring jobs back to Nevada.

Tom Roberts, R-Las Vegas, represents District 13 in the Nevada Assembly.

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.”

BH median prices.png

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. 

GPL Panel.jpg

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.