Final
BILL SUMMARY for HB05-1293

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Votes:
Action Taken:
<none><none>




11:24 AM -- House Bill 05-1293

Representative Pommer reviewed the provisions of House Bill 05-1293, concerning expansion of the stationary source voluntary emission reduction program. He made a Powerpoint presentation and distributed a hand-out of his presentation (Attachment I). The presentation discussed targeted pollutants, ground level ozone, and smog.

11:36 AM

Representative Pommer responded to questions about the potential for an Environmental Protection Agency (EPA) enforcement action. Committee discussion continued about regulation of power plants and existing EPA requirements. Representative Pommer discussed the fact that there are different standards for different power plants. Representative Pommer said that one of the reasons for the bill includes clarifying the costs for compliance with an emission reduction program.

11:46 AM

Representative Pommer continued to respond to questions about the potential for increases in residential and commercial bills.

11:46 AM

The following persons testified:

11:46 AM --
Olon Plunk, representing Xcel Energy, testified in favor of the bill. He provided background on the company's current compliance program. Mr. Plunk provided additional information about the company's support of voluntary programs and the flexibility they offer. He described the specific examples of the Pawnee and Cherokee power plants.


11:55 AM

Committee members asked questions of Mr. Plunk in regard to costs of compliance and the potential for EPA action. Mr. Plunk discussed a current dispute that the company has with the EPA in regard to the Pawnee power plant. He described the nature of voluntary programs when companies plan to go beyond or further than existing EPA requirements.


12:00 PM

Representative Knoedler made comments about recent EPA actions and said that pending actions raise questions for him in regard to the bill. He expressed concern that the bill not provide sufficient flexibility. Representative Pommer made further comments based on the witness testimony and committee questions.


12:05 PM --
Thor Nelson, an attorney with Holland and Hart and representing the Colorado Energy Consumers Group, an ad hoc group of large electric users throughout the state of Colorado, spoke in opposition to the bill. He added that the organization is supportive of the environment, but that this bill is not conducive to economic development or fair electric rates. Mr. Nelson responded to questions from the committee.

12:20 PM --
Mr. Nelson continued responding to questions.

12:34 PM --
Stan Dempsey, Colorado Petroleum Association, spoke in opposition to the bill and distributed a handout (Attachment J) which is a notice of violation from the EPA to Xcel Energy. He stated that this bill would cost his clients a significant amount of money each year.

12:48 PM --
Mr. Dempsey responded to questions from the committee.

12:53 PM

Representative McFadyen stated, in light of the hour and the members' afternoon committee schedules, that HB 1293 would be taken off the table and rescheduled for additional testimony and action.

12:54 PM

The committee adjourned.