House Committee on Transportation & Energy (01/27/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Date:	01/27/2009	ATTENDANCE

Time:	03:21 PM to 05:30 PM	Baumgardner	X
		Fischer	X
Place:	HCR 0107	Frangas	X
		King S.	X
This Meeting was called to order by		Looper	X
	Representative McFadyen	McNulty	E*
		Merrifield	E
This Report was prepared by		Primavera	X
	Kurt Morrison	Vaad	X
		Green	X
		McFadyen	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Briefing by the Governor's Energy Office HB09-1126 HB09-1098		- Amended, Referred to Finance Committee Vote - Final Action Failed

03:21 PM -- Briefing by the Governor's Energy Office

Director Tom Plant, representing the Governor's Energy Office (GEO), testified before the committee. Director Plant provided copies of his presentation to committee members (Attachment A). Director Plant stated that two main focuses of the GEO are on buildings and job creation. He also provided information on GEO programs, as well as on targeted goals and accomplishments.

03:36 PM

Director Plant took questions from the committee members. Representative Looper asked how many federal funds are received by GEO. Director Plant responded that approximately $1 million is received through the federal government with a funding match requirement. Director Plant also discussed potential funding opportunities through the federal stimulus bill under consideration by Congress.

03:50 PM

Director Plant responded to questions on renewable energy costs per kilowatt hour, specifically pertaining to wind and solar energy. Representative King asked Director Plant who determines the diversity of the Clean Energy Fund and its uses. Representative King stated that hydropower and clean coal technology are not included in the Clean Energy Fund.

03:56 PM

Representative Fischer stated that constituents have contacted him pertaining to wind power and associated aesthetic and environmental problems, and asked how such concerns are addressed. Director Plant stated that local communities are responsible for issues of placement that determine aesthetic impact. A process is in place to address wildlife issues, and new wind towers have led to reduced risk to bird populations. Representative Fischer expressed additional concerns for Division of Natural Resources employees to have a forum to address wildlife-related issues.

04:01 PM

Representative McFadyen thanked Director Plant for his testimony.

04:01 PM -- House Bill 09-1126

Representative Hullinghorst, prime sponsor of House Bill 09-1126, testified regarding the legislation. The legislation would make a change in statute to allow for components of solar thermal to qualify for a sales tax exemption. The bill would also give local governments the option of sales tax exemptions for solar. Representative Hullinghorst also discussed Amendment L.001 (Attachment B).

04:07 PM

Representative Green asked for witnesses to testify.

04:08 PM -- Ms. Beth Hart, representing the Colorado Solar Energy Industries Association (COSEIA), testified in support of the bill. Mr. Ken Regelson, representing COSEIA, offered to respond to any questions from the committee members.

04:10 PM -- Mr. Benjamin Waters, representing the Rocky Mountain Farmers Union, testified in support of the bill. Mr. Waters discussed the relation of the legislation to the agricultural industry.

04:12 PM -- Mr. Sam Weaver, representing Cool Energy, Inc., testified in support of the bill. Responding to a question from Representative Green, Mr. Weaver offered his thoughts on related job growth.

04:14 PM -- Mr. James Lowe, representing Novan Solar, Inc., testified in support of the bill. Representative Looper asked Mr. Lowe what the average cost would be for solar thermal systems incorporated into residential and commercial buildings Mr. Lowe responded that approximately $8,000 could be expected for a residential system. Commercial system costs vary significantly.

04:18 PM -- Mr. Troy Waner, representing Solar Energy Environments, LLC, testified in support of the bill.

04:20 PM -- Mr. Tom Konrad, representing the Colorado Renewable Energy Society (CRES), testified in support of the bill. Mr. Konrad provided a background on the CRES. He further discussed barriers to greater use of renewable energy systems and cited reasons. He stated that the bill could encourage solar thermal systems.

04:23 PM -- Ms. Pam Kiely, representing Environment Colorado, testified in support of the bill.

04:23 PM

Representative Hullinghorst provided closing statements on the bill, discussed Amendment L.001, and asked for an affirmative vote.


BILL:	HB09-1126
TIME:	04:25:20 PM
MOVED:	Green
MOTION:	Moved amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Fischer
		VOTE
	Baumgardner
	Fischer
	Frangas
	King S.
	Looper
	McNulty	Excused
	Merrifield	Excused
	Primavera
	Vaad
	Green
	McFadyen

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1126
TIME:	04:26:12 PM
MOVED:	Fischer
MOTION:	Moved to refer House Bill 09-1126, as amended, to the Committee on Finance. The motion passed on an 8-0 roll call vote.
SECONDED:	Primavera
		VOTE
	Baumgardner	Yes
	Fischer	Yes
	Frangas	Yes
	King S.	Yes
	Looper	Yes
	McNulty	Excused
	Merrifield	Excused
	Primavera	Yes
	Vaad	Excused
	Green	Yes
	McFadyen	Yes

Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

04:28 PM -- House Bill 09-1098

Representative Baumgardner, prime sponsor of House Bill 09-1098, discussed the merits of the bill, as well as clean coal technology and its importance to Colorado. The legislation would create a council within the Public Utilities Commission (PUC) to initiate approval coordination procedures upon request by the sponsor of a clean coal electric generation technology project. The bill would also direct the Department of Public Health and Environment to streamline procedural steps to obtain clean coal project permits.

04:33 PM

Representative Primavera asked for clarification on how the bill would streamline current PUC processes in place. Representative Baumgardner responded that the current permit process would be more collaborative and efficient. Representative King asked about current projects in the state pertaining to clean coal technology. Representative Baumgarder that there are no such projects at this time, and attributed this to environmental concerns.

04:37 PM

Representative Fischer asked for a definition of clean coal. Representative Baumgardner responded that a definition of clean coal is not in the bill. Representative McFadyen stated that other witnesses may be able to respond to that question.

04:39 PM

The chair asked for witnesses in opposition to the bill. Representative McFadyen stated that representatives of Colorado Counties, Inc. had to depart early but were signed up to testify in opposition.

04:41 PM -- Mr. Tom Konrad, representing Colorado Renewable Energy Society (CRES), testified in opposition to the bill. Mr. Konrad provided a handout describing carbon capture (Attachment C).

04:43 PM -- Ms. Leslie Glustrom, representing Clean Energy Action, testified in opposition to the bill.

04:48 PM -- Ms. Pam Kiely, representing Environment Colorado, testified in opposition to the bill. Ms. Kiely responded to questions from the committee members specific to carbon and energy sources.

04:55 PM -- Mr. Ken Regelson, representing himself, testified in opposition to the bill. Mr. Regelson responded to questions from the committee members.

05:04 PM -- Director Doug Dean, representing the Public Utilities Commission, testified in opposition to the bill. Director Dean provided a handout to the committee members (Attachment D). Representative Looper asked if there are states that define clean coal. Director Dean responded that no such definition exists in Colorado law.

05:14 PM

Representative McFadyen asked for witnesses with questions or neutral positions on the bill.

05:14 PM -- Ms. Dianna Orf, representing the Colorado Mining Association, testified regarding the bill. Ms. Orf thanked Representative Baumgardner for his legislation and for raising questions regarding clean coal. Accompanying Ms. Orf to the table, Mr. Rich Atkinson, representing himself, testified regarding the bill. Ms. Orf responded to Representative Looper's prior question regarding clean coal technology definitions.

05:26 PM

With no further witnesses seeking to testify, Representative McFadyen closed the witness phase.


BILL:	HB09-1098
TIME:	05:27:09 PM
MOVED:	Baumgardner
MOTION:	Moved amendment L.001 (Attachment E). The motion passed on a 6-3 roll call vote.
SECONDED:	Looper
		VOTE
	Baumgardner	Yes
	Fischer	No
	Frangas	No
	King S.	Yes
	Looper	Yes
	McNulty	Excused
	Merrifield	Excused
	Primavera	Yes
	Vaad	Yes
	Green	No
	McFadyen	Yes

Not Final YES: 6 NO: 3 EXC: 2 ABS: 0 FINAL ACTION: PASS


BILL:	HB09-1098
TIME:	05:28:49 PM
MOVED:	Baumgardner
MOTION:	Moved amendment L.002 (Attachment F). The motion passed without objection.
SECONDED:	Looper
		VOTE
	Baumgardner
	Fischer
	Frangas
	King S.
	Looper
	McNulty	Excused
	Merrifield	Excused
	Primavera
	Vaad
	Green
	McFadyen

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1098
TIME:	05:29:43 PM
MOVED:	Baumgardner
MOTION:	Moved to refer House Bill 09-1098, as amended, to the Committee on Finance. The motion failed on a 5-5 roll call vote.
SECONDED:	Vaad
		VOTE
	Baumgardner	Yes
	Fischer	No
	Frangas	No
	King S.	Yes
	Looper	Yes
	McNulty	Yes
	Merrifield	Excused
	Primavera	No
	Vaad	Yes
	Green	No
	McFadyen	No

Not Final YES: 5 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: TIE

05:30 PM

The committee adjourned.