Reported by Staff

A new bipartisan bill aimed at replacing coal-fired power plants with cleaner-gas driven facilities will receive its first hearing today. Backers hope the proposed legislation sponsored by Reps. Judy Solano, D-Brighton, and Ellen Roberts, R-Durango will prevent the EPA from imposing emission rules of its own in order to bring the Front Range into compliance with federal clean air standards.

Under the measure, Xcel Energy, which supplies power to 70% of Colorado’s power users, would have to design a plan by August of this year which reduces emissions for at least half of its coal-fired units or 900 megawatts of their capacity, whichever is less, by 2017. The proposed legislation would also give the power company the option of retrofitting plants with emission controls, incorporate more renewable energy and taking additional steps for using power more efficiently.

While House Bill 1365 isn’t specific as to which plants would be impacted, Xcel expects its facilities in the northern Front Range would be involved because that is the region that needs to reduce pollution the most. The utility company operates three plants there accounting for roughly 1,400 megawatts of power. The Arapahoe plant in Denver is set to close within five years and would not be counted toward the emissions reduction. Other Xcel facilities in Pueblo
and northwest Colorado would not be affected, according to an Xcel spokesman.

Unlike the recent RES legislation which passed on a straight party line vote, HB 1365 is getting support from both Gov. Ritter and Senate Republican leader Josh Penry. They, along with other backers of the bill, believe  it will also provide a market for Colorado-produced natural gas and create jobs. The natural gas industry, of course, is supporting it, along with some environmental groups including the Rocky mountain office of the Environmental Defense Fund.  A boost to the local energy economy and cleaner air are cited as reasons to support HB 1365.

Not surprisingly, Colorado’s coal industry doesn’t share their enthusiasm, fearing that  passage may lead to layoffs in mines and coal plants. In fact, the President of the Colorado Mining Association, Scott Sanderson, told the AP’s Colleen Slevin it may even lead to higher electric bills because natural gas is more expensive to process than coal, although the former’s price level has moderated recently.

“I think this bill is a dangerous gamble,” Sanderson said.

Supporters of the measure point out that Xcel Energy will have the ability to sign long term contracts which lock in natural gas prices for as many as 20 years, as long as the Colorado PUC approves.
In addition, they say that nearly three quarters of Colorado’s coal production is shipped out of state, anyway.

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