Bill Summary for Bill Number HB06-1281

Date: 02/15/2006

Final
BILL SUMMARY for HB06-1281

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Votes: View-->	Action Taken:
Moved amendment L.002 (Attachment D). The motion Moved to refer House Bill 06-1281, as amended, to	Pass Without Objection PASS

01:44 PM -- House Bill 06-1281

Representative Pommer, prime sponsor, presented House Bill 06-1281 which directs the Public Utilities Commission (PUC) to approve the development of integrated gasification combined cycle electric generation facilities upon a showing of feasibility, environmental benefits, and cost-effectiveness. The bill allows the PUC to recover the costs incurred from conducting the forementioned studies through an adjustment clause, and encourages the Governor's Office of Energy Management and Conservation as well as other state agencies to assist public utilities in developing proposals and applying for federal or state financial assistance.

Representative Pommer distributed two handouts, one from the Colorado Apollo Alliance (Attachment A), and another from a coalition of groups, supporting House Bill 06-1281 (Attachment B).

01:50 PM

Frank Prager, with Xcel Energy, spoke in support of the bill. Mr. Prager discussed the integrated gasification combined cycle (IGCC) process and distributed a handout (Attachment C) that explains the IGCC process as well.

Responding to questions from members, Representative Pommer explained that this technology has been used approximately four times in the world, but only at lower altitudes. Representative Pommer stated that the planning phase allows decision makers to know whether or not this technology will work with western coal and at lower altitudes. Representative Pommer also stated that the required funding for this project, $3 million, is available only if House Bill 06-1322 becomes state law. House Bill 06-1322 transfers $6 million annually for three years from the operational account of the Severance Tax Trust Fund into a newly created Clean Energy Development Fund.

Mr. Prager explained that the site for the IGCC facility needs to be at a place where the site will easily have transmission access to send electricity back to its load, primarily the Front Range, and where it will have access to rails to provide the coal, access to oil fields for the operators to put the carbon dioxide emanating from the system, and access to water.

01:57 PM

Fred Stoffel, Vice President of Policy Development for Xcel Energy, testified in support of the bill. Mr. Stoffel explained the phases of the project. He stated that the first phase of the project, the project development phase, will be funded by severance tax revenue. After that phase, participating state agencies will petition the federal government for additional funding. After the project is fully developed, the participating state agencies will apply for a certificate of public convenience and necessity from the PUC so that they may go forward with the facility.

02:08 PM

Ray Clifton, Executive Director of the Colorado Rural Electric Association, testified in support of the bill. Mr. Clifton stated that the state has an abundance of coal, and while the project is experimental, it is needed to move the energy industry forward.

02:12 PM

Eric Guidry, Energy Program Staff Attorney for Western Resource Advocates, testified in support of the bill. Mr. Guidry stated that the IGCC technology's improved environmental performance, more efficient design, and rate payer benefits makes it a good investment for rate payers and the environment.

02:13 PM

Stuart Sanderson, President of the Colorado Mining Association (CMA), testified in support of the bill. Mr. Sanderson stated that Colorado coal is very low in sulfur and very high in energy, designating it as super-compliance coal. Mr. Sanderson stated that the future of this industry and our energy security is dependent on the continued refinement of clean coal technologies.

02:19 PM

Representative Pommer distributed and explained amendment L.002 (Attachment D).


BILL:	HB06-1281
TIME:	02:19:00 PM
MOVED:	Pommer
MOTION:	Moved amendment L.002 (Attachment D). The motion passed without objection.
SECONDED:	Sullivan
		VOTE
	Borodkin
	Green
	Hefley
	Knoedler
	Larson
	Lindstrom
	Ragsdale
	Sullivan
	Welker
	McFadyen
	Pommer
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1281
TIME:	02:20:46 PM
MOVED:	Pommer
MOTION:	Moved to refer House Bill 06-1281, as amended, to the Committee on Appropriations. The motion passed 11-0.
SECONDED:	Larson
		VOTE
	Borodkin	Yes
	Green	Yes
	Hefley	Yes
	Knoedler	Yes
	Larson	Yes
	Lindstrom	Yes
	Ragsdale	Yes
	Sullivan	Yes
	Welker	Yes
	McFadyen	Yes
	Pommer	Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS