Reported by Ann Rascalli

The state legislature on Tuesday gave the go ahead to Xcel Energy to begin a comprehensive plan to cut air pollution at aging coal-fired power plants. On a voice vote, the state Senate approved House Bill 1365, which requires the utility to reduce nitrogen oxide levels by as much as 80 percent by 2017.  The pollutant raises haze and ozone levels that can lead to respiratory problems. A reduction of greenhouse gases will be another result of the legislation.

After its expected final approval on Wednesday and concurrence vote by the House on Thursday, Governor Ritter is likely to sign the legislation — dubbed the Colorado Clean Air-Clean Jobs Act — soon thereafter.

Utilities that own coal-fired power plants will be required to submit plans to the Public Utilities Commission by Aug. 15 on an emissions-reduction plan that covers 900 megawatts or 50 percent of the utility’s generating capacity, whichever is less. It gives an incentive to Xcel to convert to natural-gas plants by allowing the company to factor into its rates the cost of the conversion after 2011 but before the new plants are operational.

The governor’s office expects the Clean Airwill force Xcel to close at least two coal-fired plants that generate 900 megawatts of electricity in the Boulder and Denver areas, according to a news release from the governor’s office.

“This is clearly a smart way to do it,” said Colorado Public Utilities Commission chairman Ron Binz. “I don’t think any other state has taken this comprehensive approach.” Supporters say it will enable the state to get out in front of federal clean air mandates, before the EPA acts.

West Slope Republican and Senate Minority Leader Josh Penry points to the plan to use more natural gas as a winning strategy for the state, “a clean-burning fuel we have a heck of a lot of here in Colorado,” Penry said. But Senate Republicans from districts that have coal mines and coal-fired plants opposed the measure. And Stuart A. Sanderson, president of the Colorado Miners Association — which represents the coal industry — labeled the bill simply bad policy.

“There is very broad opposition to this bill, which is bad for Colorado,” he said. “This bill is essentially a Trojan horse for higher energy rates.”

The bill will “shoot the coal industry in the head,” said Sen. Al White, R-Hayden. He added that two Xcel plants switching to natural gas could cost 125 mining jobs in his region. Countered Senate co-sponsor, Bruce Whitehead, D-Hesperus, “It is not coal versus gas. It is about our children’s future … It is about cleaning the air.” Whitehead and other supporters note that in testimony before a Senate committee last week, natural gas industry executives estimated 400 new jobs could be created as a result of the bill.

“It will drive more drilling in the state of Colorado,” Penry said.