Joint Committee Committee on Joint Agriculture & House Transportation (12/12/2014)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT AGRICULTURE & HOUSE TRANSPORTATION

Date:	12/12/2014	ATTENDANCE

Time:	10:01 AM to 12:04 PM	Becker	X
		Brophy	A
Place:		Buck	X
		Coram	X
This Meeting was called to order by		Everett	A
	Senator Schwartz	Fischer	E
		Garcia	A
This Report was prepared by		Ginal	X
	Mistia Zuckerman	Guzman	A
		Harvey	A
		Jones	X
		Kraft-Tharp	X
		Lebsock	A
		McLachlan	A
		Mitsch Bush	X
		Moreno	X
		Rankin	A
		Roberts	E
		Saine	E
		Schwartz	X
		Scott	A
		Sonnenberg	X
		Tochtrop	X
		Tyler	X
		Vigil	A

		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Colorado Energy Office SMART Act Hearing		Witness Testimony and/or Committee Discussion Only

10:04 AM -- Colorado Energy Office SMART Act Hearing

Senator Schwartz, Chair, called the meeting to order.

Jeff Ackermann, Director, Colorado Energy Office (CEO), introduced himself to the committee and distributed CEO's performance plan for Fiscal Years 2014-15 (Attachment A), program fact sheets (Attachment B), the Colorado State Annual Performance Report (Attachment C), and the Colorado State Energy Report (Attachment D). He outlined CEO's structure and goals, and discussed the office's two primary funding sources: the Innovative Energy Fund and the Renewable Energy Fund. He also discussed the results of recent performance audits.

Mr. Ackermann proceeded to discuss CEO's four strategic initiatives, the first of which is to reduce the amount of household income expended by low-income households on energy.

10:15 AM

Mr. Ackermann responded to questions from the committee regarding the role of energy companies and electric co-ops in achieving the first initiative and the implementation of Senate Bill (SB) 13-252, which increased the portion of Colorado's Renewable Energy Standard and added new eligible resources. Representative Coram asked about new types of energy sources and Chair Schwartz asked about the impacts on rural electric associations (REAs), such as increased rates. Mr. Ackermann discussed the role of CEO as a technical assistance expert and how it helps to give investors confidence to invest in new technology. Committee discussion ensued.

10:31 AM

Mr. Ackermann resumed his presentation. He explained that CEO's second initiative is to increase the number of entities across all economic sectors in Colorado that either purchase or make improvements that lead to highly energy efficient facilities. He said that their goal for the commercial sector this year is to launch the Commercial Property Assessed Clean Energy (CPACE). Chair Schwartz asked for more information on this financing program.

Senator Jones commented that the CEO could do more than eight projects. Mr. Ackerman said that eight projects is a starting point rather than a final goal, and discussed how projects are delivered through local governments. Senator Jones asked CEO to include the small business assistance centers in its outreach programs.

Representative Mitsch Bush commented on the success of energy performance contracting.

10:41 AM

Mr. Ackermann discussed the third initiative, which he explained is to increase the percentage of new medium and heavy duty compressed natural gas (CNG) and Electric Vehicle (EV) light duty vehicles in Colorado.

Mr. Ackermann responded to questions from the committee regarding costs and taxes of this program, and how charging stations are selected. Committee discussion ensued.

10:53 AM

Senator Tochtrop commented on problems associated with paying for infrastructure. Committee discussion ensued regarding the $50 fee that EV owners pay annually. Mr. Ackermann discussed the role of CEO in finding where the state fleet needs additional support and helping departments to select future vehicles.

11:01 AM

Mr. Ackermann discussed the fourth initiative, which he explained is to increase the diversity of the Colorado electric generation portfolio. Rep. Becker asked how grid modernization fits into the CEO's performance plan. Mr. Ackermann discussed Black Hills Energy, and how smart metering could be implemented.

11:09 AM

Rep. Becker asked when CEO would develop a climate change plan. Chair Schwartz discussed the Colorado State Energy Report 2014 (Attachment D) and agreed that it does not include long-term goals. Mr. Ackermann discussed House Bill 09-1293 and the different roles of CEO, the Colorado Department of Natural Resources, the Colorado Department of Public Health and Environment, and the Water Conservation Board, in developing a climate plan.

11:18 AM

Discussion ensued regarding metrics of the CEO Annual Performance report page 2 (Attachment C). The committee asked for a chart with specific target goals.

11:24 AM

Mr. Ackermann responded to questions from the committee regarding Demand-Side Management (DSM) funding and related projects.

11:27 AM

Mr. Paul Sharfenberger, Finance Manager, CEO, introduced himself to the committee, and explained the role of the CPACE program's board in promulgating rules in response to questions from committee members. Committee discussion ensued regarding business incentives and program outreach.

11:45 AM

Mr. Ackermann discussed the Weatherization Assistance Program. Committee discussion ensued.

11:56 AM

Mr. Ackermann responded to questions from the committee regarding the Electric Vehicle Fund and the . Sen. Schwartz asked about the Energy Code Training Program. The assignments of legislative liaisons were discussed.

12:04 PM

The committee adjourned.