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October 22 Colorado Energy Cheat Sheet: Another CO mine faces WildEarth Guardians Lawsuit; EPA panel in GJ draws large crowd; regulatory freeze as part of debt ceiling debate?

UPDATE–Clean Power Plan rule will be published in Friday’s Federal Register, opening the door for multi-state lawsuits over the next two months:

CLEAN POWER PLAN – LADIES AND GENTLEMEN, START YOUR ENGINES: EPA’s carbon rule for power plants will formally be published in tomorrow’s The Federal Register, according to a pre-publication notice that showed up this morning. That means tomorrow kicks off the 60-day clock to sue over the rule. Expect the first suits to be filed shortly after the court opens for business Friday.

The Clean Power Plan, covering existing power plants, is available here. The rule for new, modified and reconstructed power plants is here. And the proposed federal implementation plan, set for finalization next year, is available here.

Just in time, environmentalists are holding a press call this morning outlining a legal defense for the rule. Meanwhile, the House Energy and Power Subcommittee also just happens to be holding a hearing this afternoon on CPP legal issues – and the witness list includes Elbert Lin, West Virginia’s solicitor general and likely one of the people who will argue against the rule in front of judges down the line.

As Alex Guillen reports this morning for Pros, “The timing of the rules’ publication , nearly three months after President Barack Obama rolled them out at the White House, makes it unlikely that a court will act to block them ahead of December’s Paris talks, where some 200 nations will gather to hash out a pact to address climate change.”

More to come.

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Another Colorado mine is facing a lawsuit from the WildEarth Guardians, but this time, the communities of western Colorado are preparing ahead of time:

MAKE A STAND

Each day, thousands of rural Coloradans, small businesses, schools and farms rely on the clean, low-cost energy fueled by Trapper Mine’s nearly 200 employees. For more than three decades, Trapper has provided affordable energy across the West, jobs to hundreds of families and vast civic and economic benefits to our northwestern Colorado community.

Now, we need our community to Stand with Trapper.

On October 29, from 4 to 8 p.m., the federal Office of Surface Mining will host a public meeting to gather public comments on the scope of an environmental assessment the agency will prepare in response to a lawsuit brought by WildEarth Guardians. The October 29 public meeting includes a comment period through November 12 to further gather input. All public comments during this phase are due to OSM no later than November 12—and must be in written form.

The agency’s completion of this assessment is vital to Trapper’s future.

We ask that you attend this meeting and provide support for Trapper’s workers and their families, the positive impact Trapper makes to the community, the mine’s nationally recognized environmental stewardship and reclamation efforts—and its commitment to providing affordable and reliable energy.

The public meeting will be held October 29, from 4 to 8 p.m., at the Moffat County Fairgrounds’ Pavilion Building. The event will provide an opportunity to ask questions andmeet with OSM and Trapper representatives and to provide written comments on the environmental assessment.

Community members can also provide written comments via email and written letters to OSM. For more information and to submit comments, please click here.

Thank you for Standing with Trapper.

Screen Shot 2015-10-21 at 10.49.23 PM

More on the public comment:

Bill Ray, public information officer for Trapper, said Moffat County’s attendance at the meeting and participation throughout the comment process is crucial.

“This process is vital to Trapper’s future, and we believe to the community’s future,” he said. “We encourage community members to come to the meeting, to provide written comments and to stand with Trapper.”

Ray said throughout the comment period, Trapper would continue to work with the community to help it stay informed. Future public meetings organized by Trapper are a possibility but none have been scheduled so far.

Chris Holmes, public affairs specialist for OSMRE, said all comments are accepted but substantive ones are the most useful.

“The comments that we look for are those that have carefully examined all the issues, looked at the specific permit that’s in question and the revisions,” he said. “Substantive comments are what carry the most weight.”

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Could the debt ceiling provide a mechanism for pushback against regulatory overreach and “midnight” regulations promulgated between next year’s election and the new President’s inauguration? A proposal from the Republican Study Committee called “Terms of Credit: Budget, Work, Grow”:

Grow: In order to give firms and workers certainty and allow the economy to grow, freeze all
regulations until July 1, 2017.
• Current freeze – Prohibit any significant regulatory action through July 1, 2017, subject to
health, safety, and national security waivers
• No midnight rules – Prohibit any new regulatory action between the date of a presidential
election and the next inauguration, again subject to health, safety, and national security
waivers

You can view the bill summary here, and the full text of the bill here.

The freeze on regulations would include the Environmental Protection Agency’s Clean Power Plan. More to come.

***

Dan Haley, president and CEO of the Colorado Oil and Gas Association, has an op-ed in The Hill calling for the U.S. to allow crude oil exports, with Colorado taking a lead:

In my state of Colorado, this is not a partisan issue but one of common sense and business opportunity. Colorado Governor John Hickenlooper, a Democrat, and Senator Cory Gardner, a Republican, both support lifting the ban. Plus, with Reps. Ken Buck (R), Mike Coffman (R), Doug Lamborn (R), Ed Perlmutter (D) and Scott Tipton (R) all voting to dump this outdated policy, once again we see Colorado as a leading bipartisan voice for this issue.

Colorado’s elected officials understand the world, and our economy, have changed greatly since the 1973 Arab oil embargo led Congress to pass the ban on U.S. oil exports in nearly all circumstances.

In today’s world, oil and liquefied natural gas (LNG) exports offer a path away from OPEC domination of the world’s energy markets. Unstable regimes in Russia and the Middle East should not be allowed to hold such sway over the international market. Increasing U.S. production and exports strengthens our country’s energy independence and national security and benefits our allies across the globe.

While opponents of lifting the ban argue that it could raise the price of gasoline studies have clearly shown the opposite is actually true. According to the U.S. government’s Energy Information Administration, exporting U.S. oil would encourage more production while opening up new markets which can further ease the prices at the pump with the additional supply.

Lifting the export ban is a major opportunity for this country and one that should not be missed. It is time that we cement our nation as the global energy leader it is destined to be and create thousands of well-paying American jobs in the process.

But Garfield County is not optimistic about immediate development, thanks to new oil and gas regulations, and activists are happy for the additional red tape:

Garfield County commissioners are worried that proposed new state rules to address conflicts between oil and gas development and neighborhoods could unduly drag out how long it takes companies to get approval to drill.

“It adds a year to the process,” Garfield Commissioner Tom Jankovsky said Monday about a proposed local government consultation process, echoing a concern also raised by Commissioner John Martin.

Jankovsky said the proposal could add $500,000 to $1 million to the cost of developing a well pad.

But Leslie Robinson, president of the Grand Valley Citizens Alliance, said the extra time is warranted to address concerns such as the possible impacts of drilling to the thousands of residents in Battlement Mesa.

“It should go through this long process,” she told commissioners.

The commissioners are working to submit comments to the Colorado Oil and Gas Conservation Commission as that agency prepares to act on two recommendations of a recent state task force. The agency is looking to require energy companies to consult with the affected local government when proposing a large drilling operation near an urban residential area, and require companies to provide long-term drilling plans to local governments.

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(Former PUC chair Ray Gifford offers details about the EPA’s Clean Power Plan, photo courtesy of Colorado Senate GOP)
About 100 people on Colorado’s western slope attended a panel on the coming storm of EPA regulations, co-sponsored by the Independence Institute, the National Federation of Independent Businesses, Americans for Prosperity, and the Colorado Senate Republicans:

The U.S. Environmental Protection Agency’s proposed Clean Power Plan would have long-term negative impacts on the nation’s coal industry if it survives a legal challenge, one expert on the issue said on Tuesday.

At a one-sided forum sponsored by several right-leaning groups, Denver attorney and former Colorado Public Utilities Commission chairman Ray Gifford told about 100 Western Slope residents and government officials the impact the plan would have on coal-fired power plants specifically, and the coal industry in general.

Under the plan, which is to become official in the next few weeks but doesn’t fully go into effect for a few years, states would be required to reduce ozone emissions from power plants by 32 percent of 2005 levels by 2030.

States would have to come up with their own plans for achieving that goal by the end of next year, but can request a two-year extension if they can show they are making “substantial progress” toward a viable plan, Gifford said.

While he and others questioned whether the EPA has the legal authority to implement such a plan — lawsuits have already been filed challenging it — Gifford also said the federal agency is playing loose and easy with the facts behind the idea.

“The state lawsuit is essentially going to say that the EPA has vastly exceeded its authority, which is true,” Gifford said. “It’s undertaken a rule of scope and scale that’s never been contemplated before essentially by taking over the nation’s electric grid and dictating the change by 2030, and the assumptions that it uses are arbitrary and capricious, which are the legal magic words. How that (lawsuit) goes is anybody’s guess.”

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(NFIB’s Tony Gagliardi gives an update on the Waters of the United States rule (l-r: Gifford, State Sen. Ray Scott, R-Grand Junction, photo courtesy of Colorado Senate GOP)

Two more EPA panels will be held next week–Wednesday October 28 in Pueblo, and Thursday October 29 in Denver.

***

An additional 500-600 gallons of orange water is being emitted from the Gold King Mine every minute since the August blowout, costing taxpayers nearly $15 million and prompting more calls for “Good Samaritan” legislation:

The Aug. 5 blowout at the Gold King Mine created memorable images of orange water that flowed from Colorado’s Animas River into the San Juan River in New Mexico and Utah. Clean-up has cost taxpayers $14.5 million and counting. But some say spills like this aren’t the main concern.

“Blowout scenarios — they are impressive, they get a lot of attention, they are probably not the biggest issue,” said Peter Butler, co-chair of the Animas River Stakeholders Group. “The biggest issue is more the continuous metal loading that comes from the mining sites.”

Take the site of the Gold King Mine spill. Construction crews have now finished a $1.5 million temporary wastewater treatment plant for the Gold King Mine. EPA on-scene coordinator Steven Way explains that 500 to 600 gallons of orange water has continued to gush out of the mine since last August.

But that facility is only handling water from the Gold King Mine. It’s not treating water from two additional old mines and an underground tunnel that are draining another 500 gallons of wastewater every minute.

The Animas River isn’t the only Colorado river running orange.

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Speaking of water–another Front Range vs. rest-of-the-state battle is shaping up over the precious resource:

Objections from Front Range cities are forcing state officials to make a last-minute overhaul of Colorado’s water plan and pledge to build new reservoirs that enable population growth.

Aurora, Colorado Springs, Denver and Northern Colorado Water Conservancy District providers also are demanding that the state detail plans for the diversion of more water across mountains to the Front Range.

That puts them at odds with Western Slope residents, who Tuesday weighed in with their own demand that Gov. John Hickenlooper block diversion of more water.

The Colorado Water Plan, 30 months in the making, spells out how the state intends to supply water for the 10 million people projected to live in the state by 2050. Hickenlooper has ordered the Colorado Water Conservation Board to complete the plan by Dec. 10.

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The solar energy industry blames think tanks and utilities (and the fossil fuel companies that fund them) for its poor market performance in a new report:

After years of rapid growth, Colorado’s once red-hot solar energy industry has faded recently, according to a new report from Environment Colorado, which blames fossil fuel-funded think tanks and utilities for raining on the state’s solar parade.

According to “Blocking the Sun: 12 Utilities and Fossil Fuel Interests That Are Undermining American Solar Power,” Colorado’s solar power capacity increased 44 percent a year from 2010 to 2013, but then dropped dramatically between 2013 and 2014, knocking the state from 7th to 10th in terms of solar power capacity per capita in the United States.

“Despite the fact that we have one of the best solar assets in the country, Colorado’s market share is shrinking nationwide due to weak utility support and uneven legislative progress,” said Alex Blackmer, president of the 5,000-member Colorado Renewable Energy Society, on a conference call with reporters late last week.