Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Date:04/16/2015
ATTENDANCE
Time:11:56 AM to 12:55 PM
Becker J.
*
Buck
X
Place:HCR 0112
Carver
*
Coram
X
This Meeting was called to order by
Esgar
*
Representative Tyler
Kraft-Tharp
*
Melton
X
This Report was prepared by
Moreno
*
Matt Kiszka
Neville P.
X
Nordberg
*
Winter
*
Mitsch Bush
*
Tyler
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB15-1332
Presentation from Metro Denver on the Resource Rich Colorado Report
Amended, Referred to Finance
Witness Testimony and/or Committee Discussion Only


11:56 AM -- HB 15-1332

The committee was called to order. The committee took a brief recess.

12:01 PM

Representative Pabon, prime sponsor, came to the table to present House Bill 15-1332. The bill creates a state income tax credit for a taxpayer who purchases and installs the equipment necessary to generate electricity using hydroelectricity, wind, or biomass resources. To qualify, the taxpayer must be an end-user electric customer of a cooperative electric association or municipal electric utility. In addition, the power generation system must be located on the taxpayer's side of the meter.

The amount of the credit is the lesser of 30 percent of the total costs of the equipment or $50,000. The taxpayer can only generate an income tax credit once and the credit is refundable. The credit will be available for tax years 2015 through 2017 and is capped at $1 million dollars each year. The bill requires the Colorado Energy Office to verify that the taxpayer meets the credit requirements and to issue a credit certificate.

Representative Pabon responded to questions from the committee on the definition of "small hydro" and why investor owned utilities (IOU) are not included under the bill.

12:07 PM -- Charles Newcomb, representing the Distributed Wind Energy Association and Endurance Wind Power, spoke in favor of the bill. He distributed a map showing the wind turbines installed by Endurance Wind Power (Attachment A). He discussed the wind resources of Colorado, small wind markets, incentives for wind energy, the Small Wind Council that had been formed in Colorado to encourage investment in small wind technologies, and the expected installation of small wind that would result from the bill. He responded to questions on the average size of a distributed generation project, whether reporting requirements for the tax credit had been considered in the bill, and the existing incentives provided by IOUs for customers who install distributed generation technologies.

150416 AttachA.pdf150416 AttachA.pdf

Representative Pabon distributed amendment L.001 (Attachment B) and explained that it removes biomass from the bill and extends the credit for a year.

150416 AttachB.pdf150416 AttachB.pdf
BILL:HB15-1332
TIME: 12:18:05 PM
MOVED:Tyler
MOTION:Adopt amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:Mitsch Bush
VOTE
Becker J.
Buck
Carver
Coram
Esgar
Kraft-Tharp
Melton
Moreno
Neville P.
Nordberg
Winter
Excused
Mitsch Bush
Tyler
YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


12:19 PM

Representative Pabon made his closing comments on the bill, noting that the Colorado Cleantech Industry Association, Colorado Farm Bureau, Distributed Wind Energy Association, and Conservation Colorado could not attend to testify in support of the bill because of conflicting legislative schedules. The committee discussed the merits of the bill.
BILL:HB15-1332
TIME: 12:19:08 PM
MOVED:Mitsch Bush
MOTION:Refer House Bill 15-1332, as amended, to the Committee on Finance. The motion passed on a vote of 7-6.
SECONDED:Melton
VOTE
Becker J.
No
Buck
No
Carver
No
Coram
No
Esgar
Yes
Kraft-Tharp
Yes
Melton
Yes
Moreno
Yes
Neville P.
No
Nordberg
No
Winter
Yes
Mitsch Bush
Yes
Tyler
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:27 PM -- Presentation from Metro Denver on the Resource Rich Colorado Report

Chris Hansen, Senior Director of Energy Insight for IHS Inc. and Co-Chair of the Colorado Energy Coalition, came to the table to present to the committee on the Denver Metro Chamber of Commerce's Resource Rich Colorado report. He highlighted the production and consumption of crude oil, the increase in access to shale oil and gas, and declining oil consumption trends. He responded to questions on the U.S. reaching peak oil consumption in 2008 and historic trends in U.S. oil consumption. Mr. Hansen discussed international oil production leaders, declining rates of oil imports, natural gas prices, and natural gas production by state. He responded to questions regarding Colorado's exportation costs for natural gas, pipeline infrastructure in Colorado, and the status of an oil refinery in North Dakota.


12:38 PM

Mr. Hansen discussed U.S. natural gas production versus consumption and responded to questions on potential price increases for U.S. liquefied natural gas (LNG) exports. He discussed natural gas pipeline development in the U.S., the international leaders for natural gas and coal production, and U.S. coal production by state. He responded to questions on the closing of the Oxbow mine and how this had impacted U.S. coal production, current U.S. exports to China, the factors that affect the coal production of states, the financial instability of large coal companies, and the quality of northwest Colorado coal.

Mr. Hansen discussed renewable sources of energy, the U.S. electric transmission grid, historic U.S. energy resources, and international per capita energy consumption. He discussed the environment and sustainable practices of the U.S., focusing on U.S. carbon dioxide (CO2) emissions per capita, CO2 emissions by country, and Colorado water utilization by sector. He then discussed Colorado's energy policies and programs.

12:54 PM

The committee adjourned.