HB 1365 - Utility Emission Reduction Plan - Colorado Key Vote

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Title: Utility Emission Reduction Plan

Vote Smart's Synopsis:

Vote to concur with senate amendments and pass a bill that requires coal-fired power plants to reduce their emissions.

Highlights:

-Requires all rate-regulated utilities that own or operate coal-fired electric generating units to submit to the commission an emission reduction plan on or before August 15, 2010 with a schedule that would result in full implementation on or before December 31, 2017 (Sec. 1). -Specifies that the plan must cover a minimum of 900 megawatts or 50 percent of the utility's coal-fired electric generating units, whichever is smaller, not including any coal-fired capacity that the utility has already announced that it plans to retire prior to January 1, 2015 (Sec. 1). -Specifies that at the utility's discretion, the plan may include, but not be limited to, the following elements (Sec. 1):

    -New emission control equipment for oxides of nitrogen and other pollutants; -Retirement of coal-fired units to be replaced by natural-gas fired electric generation or other low-emitting resources; -Conversion of coal-fired generation to run on natural gas; -Long-term fuel supply agreements for a time period not less than 3 years or more than 20 years; -New natural gas pipelines and other supporting gas infrastructure; -New transmission lines and other supporting transmission infrastructure; -Any other capital, fuel, and operations and maintenance expenditures that are appropriate.
-Requires the utility to consult with the department to design a plan to meet the current and reasonably foreseeable requirements of the Clean Air Act and state law in a cost-effective and flexible manner (Sec. 1). -Specifies that in order for a plan to be approved, the department shall consider, but not be limited to, the following factors (Sec. 1):
    -Its likelihood to achieve at least a 70 to 80 percent reduction in annual emissions of oxides of nitrogen as measured from the 2008 levels; -The degree to which the plan will result in reduction in other air pollutant emissions; -The degree to which the plan will increase utilization of existing natural gas-fired generating capacity; -The ability of the utility to meet state or federal clean energy requirements, relies on energy efficiency, or relies on other low emitting resources; and -Whether the plan promotes Colorado economic development.
-Specifies that it is in the public interest to expeditiously accelerate coal plant retirements and for utilities to give primary consideration to replacing or repowering their coal generation with natural gas generation and that utilities should also consider other low-emitting resources, including energy efficiency (Sec. 1). -Requires the utility to evaluate whether to retire a portion of its coal-fired capacity on or before January 1, 2013, or whether previously announced retirements could be advanced (Sec. 1). -Specifies that a utility is entitled to fully recover the costs that it prudently incurs in executing an approved emission reduction plan (Sec. 1). -Specifies that if a public utility's wholesale sales are subject to federal regulation and is sold on the wholesale market from a project developed pursuant to the plan, the commission shall determine whether to assign a portion of the plan cost to be recovered from the customers (Sec. 1). -Specifies that to the extent that the federal energy regulatory commission does not permit recovery of the allocated wholesale portion of plan-related investment, the commission shall approve retail rates sufficient to recover (Sec. 1). -Authorizes the commission to order interim rates at any level up to the proposed new rates to take effect not later than 60 days after the filing for the proposed rate increase (Sec. 2). -Specifies that if rates established after a hearing are lower than any interim rates, then the utility must return to customers the difference between the total amount that would have been collected and the amount collected under the interim rates with interest at a rate established by the commission (Sec. 3). -Appropriates, for fiscal year 2010-2011, $87,000 for the implementation of this act (Sec. 4)

NOTE: THE LEGISLATURE PROVIDES ITS MEMBERS WITH THE OPPORTUNITY TO BOTH VOTE ON WHETHER TO CONCUR WITH THE OPPOSING CHAMBER'S AMENDMENTS AND, IF THE CONCURRENCE VOTE SUCCEEDS, VOTE TO REPASS THE BILL AFTER THE AMENDMENTS ARE INCORPORATED. THIS IS A VOTE ON REPASSAGE OF THE BILL AFTER THE MEMBERS CONCURRED WITH THE OPPOSING CHAMBER'S AMENDMENTS.

See How Your Politicians Voted

Title: Utility Emission Reduction Plan

Vote Smart's Synopsis:

Vote to pass a bill that requires coal-fired power plants to reduce their emissions.

Highlights:

-Requires all rate-regulated utilities that own or operate coal-fired electric generating units to submit to the commission an emission reduction plan on or before August 15, 2010 with a schedule that would result in full implementation on or before December 31, 2017 (Sec. 1). -Specifies that the plan must cover a minimum of 900 megawatts or 50 percent of the utility's coal-fired electric generating units, whichever is smaller, not including any coal-fired capacity that the utility has already announced that it plans to retire prior to January 1, 2015 (Sec. 1). -Specifies that at the utility's discretion, the plan may include, but not be limited to, the following elements (Sec. 1):

    -New emission control equipment for oxides of nitrogen and other pollutants; -Retirement of coal-fired units to be replaced by natural-gas fired electric generation or other low-emitting resources; -Conversion of coal-fired generation to run on natural gas; -Long-term fuel supply agreements for a time period not less than 3 years or more than 20 years; -New natural gas pipelines and other supporting gas infrastructure; -New transmission lines and other supporting transmission infrastructure; -Any other capital, fuel, and operations and maintenance expenditures that are appropriate.
-Requires the utility to consult with the department to design a plan to meet the current and reasonably foreseeable requirements of the Clean Air Act and state law in a cost-effective and flexible manner (Sec. 1). -Specifies that in order for a plan to be approved, the department shall consider, but not be limited to, the following factors (Sec. 1):
    -Its likelihood to achieve at least a 70 to 80 percent reduction in annual emissions of oxides of nitrogen as measured from the 2008 levels; -The degree to which the plan will result in reduction in other air pollutant emissions; -The degree to which the plan will increase utilization of existing natural gas-fired generating capacity; -The ability of the utility to meet state or federal clean energy requirements, relies on energy efficiency, or relies on other low emitting resources; and -Whether the plan promotes Colorado economic development.
-Specifies that it is in the public interest to expeditiously accelerate coal plant retirements and for utilities to give primary consideration to replacing or repowering their coal generation with natural gas generation and that utilities should also consider other low-emitting resources, including energy efficiency (Sec. 1). -Requires the utility to evaluate whether to retire a portion of its coal-fired capacity on or before January 1, 2013, or whether previously announced retirements could be advanced (Sec. 1). -Specifies that a utility is entitled to fully recover the costs that it prudently incurs in executing an approved emission reduction plan (Sec. 1). -Specifies that if a public utility's wholesale sales are subject to federal regulation and is sold on the wholesale market from a project developed pursuant to the plan, the commission shall determine whether to assign a portion of the plan cost to be recovered from the customers (Sec. 1). -Specifies that to the extent that the federal energy regulatory commission does not permit recovery of the allocated wholesale portion of plan-related investment, the commission shall approve retail rates sufficient to recover (Sec. 1). -Authorizes the commission to order interim rates at any level up to the proposed new rates to take effect not later than 60 days after the filing for the proposed rate increase (Sec. 2). -Specifies that if rates established after a hearing are lower than any interim rates, then the utility must return to customers the difference between the total amount that would have been collected and the amount collected under the interim rates with interest at a rate established by the commission (Sec. 3). -Appropriates, for fiscal year 2010-2011, $87,000 for the implementation of this act (Sec. 4)

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