Editor’s Note: 2010 is shaping up as a pivotal year for the Governor’s Energy Office. From Governor Ritter’s surprising announcement that he won’t seek a second term to the challenging task of administrating myriad new grant and rebate programs, as well as its planned launch of an energy information clearinghouse for consumers and businesses, the organization on point for the new energy economy has plenty on its plate. Colorado Energy News thought now would be an opportune time to check in with GEO’s Director, Tom Plant, for his perspective on the events and issues helping to shape his organization’s agenda. Executive Editor, David Hill, spoke to him last week in this exclusive interview.

DAVID HILL: I think the first thing our readers would like to know, Tom, is how you see Gov. Ritter’s surprising announcement impacting the Governor’s Energy Office.

TOM PLANT: Some things have changed for us, and some haven’t since before the announcement. The November election is going to happen, regardless. One candidate, Mayor Hickenlooper, is a real advocate of the new energy economy and one is not. So that scenario hasn’t really changed. The GEO serves at the pleasure of the governor. If a candidate is elected who is not a supporter of the new energy economy, then I wouldn’t expect to see an advancement of the kind of programs we’ve developed. On the other hand, I would expect dynamic growth of the programs we’ve put forth if the candidate supporting the new energy economy is elected. What Governor Ritter created through this office is designed to not live or die with his administration. But it will require executive support to grow.

HILL: How would you describe the role of the GEO?

PLANT: The GEO serves the people of Colorado by advancing the development and utilization of renewable energy and energy efficiency around the state. We reduce barriers for people to take advantage of incentives, rebates and tax credits to help them improve and save on their energy use. We also partner with state entities to reach out across different sectors. In fact, 75% of state agencies are engaged in some kind of energy performance contracting.

As Governor Ritter has described, the GEO is creating a culture and eco-system that supports the new energy economy. Executive leadership like that provided by the Governor can transform a state, and that is what’s happening here. I remember accompanying him to the National Renewable Energy Laboratory in Golden back in 2007, a few months removed from the election. I was surprised to learn that it was the first visit from a chief executive of Colorado in more than eight years, which is really amazing given NREL’s position as a world-class R&D facility.

HILL: What do you think was the most important accomplishment of the GEO in 2009?

PLANT: It has really been in the last year that Governor Ritter’s vision of Colorado playing a vital national and international role in renewable energy development and energy efficiency has taken shape — and we think this will expand in the coming decades.

When you look at what has recently taken place with the new energy economy — companies like Ascent Solar, Siemens, which is establishing an R&D facility on the Front Range, Vestas and RePower locating here … when we see that kind of business development and companies moving forward despite the dramatic recession, that really bodes well for our state when things start improving and more investment start flowing into the economy.

HILL: Critics of the new energy economy say it is being propped up with too many subsidies.
Is that a fair argument?

PLANT: Historically, the levels of federal and state subsidies for the fossil fuel and nuclear industries absolutely dwarf the amounts clean energy has received. What is also interesting …  the companies we work with in the renewable and efficiency sectors view subsidies and incentives as temporary tools to help in the formative stages of their businesses and the industry, and don’t want them down the road. Everyone we talk with say they are not planning to use subsidies once their businesses are established.

Take solar, for example. The DOE estimates it will reach grid parity by 2015. After that, the solar industry will grow on its own. Traditional industries like to hold on to their subsidies even though they’re very mature.

HILL: Can you elaborate?

PLANT: I think there would be real interest in an in-depth study analyzing what would happen if you take away specific incentives for specific industries, and look at how we can pay for power based on what our policy objectives are. For instance, if you use less water, you get a higher price for your power. If you emit less carbon, you get a higher price for your energy. If you can produce power at the peak times of the day when utilities really need it, you get more for it.

We need to allow the market to drive innovation. If you have a lower water footprint and produce power when the utility needs it, that technology should earn the higher dollar because it delivers higher value for the public. If a technology can reduce carbon footprint, it really doesn’t matter what that technology is. Consistency in public policy is required when it comes to energy, such as utility scale developers needing to know they will have a market to sell into. Their projects are developed on power purchase agreements with utilities. The renewable portfolio standard creates some market certainty, but obviously it is a competitive environment.

HILL: How does that translate here in Colorado?

PLANT: You have to have a real market, business environment and well-trained workforce to achieve success and job growth. We have all three in Colorado. For example, NREL is a great calling card for us when we talk to global companies about relocating here. I remember back in early 2007 when I joined Governor Ritter on a visit to the NREL facility soon after the election. Amazingly, it was the first time in eight years the state’s chief executive had stepped foot on the Golden campus. Executive leadership like that provided by Governor Ritter can transform a state, and that is what’s happening here.

HILL: In the new energy economy, where do you see Colorado’s natural gas industry?

PLANT: Compressed natural gas is most definitely an important part of our vision and we’re big advocates of increasing the use of CNG for transportation and fuel for power generation. In fact just a couple of weeks ago, we announced a grant  focusing on Compressed Natural Gas for Vehicle Fuel Infrastructure.

HILL:  The big GEO news this year seems to be the pending information clearinghouse program you’re planning to launch soon. Tell us about it.

PLANT: We’ve identified three legs of the stool for people to improve their energy use and save. They are access to information, access to services and access to capital.

Getting the right information to people in rapid fashion is really essential. Prior to the stimulus, we were limited to working with pilot projects for the most part, here and there. The stimulus funding has enabled the GEO to design an information system that goes across the state to connect businesses and consumers with a multitude of energy incentives, rebates and tax credits available. It gave us the momentum to create a system that breaks down barriers to expand energy efficiency and clean energy sources across the state.

The access to information is critical given all the incentives, subsidies and tax credits available. There are 57 different utilities in the state of Colorado; all have different incentives and rebates. Counties have different incentives and programs; and different programs exist at the national level. There is no single location where consumers and businesses can go to find out, for example, who can fix a furnace, or weatherize their home, and what programs are available to save on getting the job done.

We’re designing a centralized location in which people can plug in their address and get all the forms and information they need to claim the incentives. Through this “central hub” they can link to local service providers, etc., rebates and financing options, so they will be able to afford to make the improvements they want to make.

HILL: When is this going to become operational?

PLANT: The GEO is targeting an April launch with the online clearing house and call center (where people can phone in for answers to basic questions). Our staff will help consumers with the right questions to ask contractors, so they can make informed decisions, such as certification requirements. But we won’t be gatekeepers. We’ve learned that people will not generally follow-up on such things as weatherization and efficiency steps if they find it difficult to get the basic information they need at the beginning. Our goal is to make it easy for them to get started.

HILL: How do you see the national energy debate?

PLANT:  We need a price on carbon. How that is accomplished is where the sausage gets made and options are available. The Massachusetts election last week may change things as far as something being developed this year, but ultimately, we need policies to start moving energy generation into 21st century, using clean resources. The U.S has a big opportunity to capture this market.

I always come back to this: America was founded on independence. We are not independent anymore. Today we’re dependent on China for financial support and the middle east for energy supplies. This has to change. Here in Colorado we’ve always possessed an independent, self-reliant attitude of the West. I think we need to re-assert our independence and ability to provide for ourselves.

One thing that is encouraging to me is that when we had the high gas prices of $4 plus two summers ago, it was a wake-up call for people, and we haven’t gone back to the old gas guzzling ways. The interest in flex vehicles and hybrids has never been greater. And Colorado is positioned to be part of this new vehicle push, with R&D facilities like the battery company, UQM Technologies, based on the Front Range.

HILL: Colorado Energy News looks forward to reporting on GEO’s activities this year, Tom. We appreciate your time.

PLANT: Thanks so much, David.