Colorado Adopts 30 Percent Renewable Energy Standard for Electricity by 2020; "Cements" Colorado's Reputation as Center of "New Energy Economy"

Colorado Gov. Bill Ritter has signed into law legislation requiring that 30 percent of electricity generated by state regulated utilities be from renewable sources by 2020. It represents the largest renewable portfolio standard in the U.S. Rocky Mountain West.

According to the Governor, the law will create thousands of new jobs and result in 100,000 solar rooftops between now and 2020. Please click here to listen to Gov. Ritter's remarks about this historic legislation.

In signing the legislation, Gov. Ritter said, "Today we continue to chart a new course for Colorado's New Energy Economy and America's clean energy economy. Colorado is giving every state and the entire nation a template for tomorrow. This is a game-changer. We are transforming the future of Colorado and our country."

Over the past six years Colorado's renewable energy goals for electricity generation by 2020 have increased from zero in 2003, to 10 percent in 2004, to 20 percent in 2007, to 30 percent in 2010. The law calls for three percent of the 30 percent to be met by local solar power.

The measure, which was supported by the state's largest electricity provider Xcel Energy, was embraced by Environment Colorado (EC). "Today we've truly 'hit it out of the park,' taking Colorado's vision for new energy future to the big leagues," Pam Kiely, program director with EC, said.

As this blog has reported many times, Colorado is at the center of the nation's new energy economy. Come learn about it at the Sturm College of Law, where you will find an impressive and steadily increasing offering of energy and renewable energy offerings taught by the nation's best renewable energy policy and technology experts and practitioners.

Colorado Renewable Energy Portfolio Moving to 30 Percent?

It appears that Colorado is poised to increase its renewable energy portfolio standard from the current 20 percent to 30 percent by 2020.

The new standard, which has support from Gov. Bill Ritter, state-regulated electricity producers, and environmentalists, would position Colorado among the top five states in the U.S. in terms of the percentage of electricity generated from renewable energy.

One of the primary means to meet the new standard would be to encourage distributed electricity production, particularly from roof-mounted solar units, The Denver Post reported ("Panel Hears Proposal to Hike Renewable Energy Requirement," Feb. 5, 2010).

In many respects, the ambitious nature of the measure is not entirely surprising since Colorado has undertaken a strategic effort to become the center of the so-called "new energy economy."

The University of Denver Sturm College of Law has positioned itself as a leader in the study of renewable energy law and policy. Currently, the College of Law offers two renewable energy courses -- "Renewable Energy Project Finance" and "Renewable Energy for the 21st Century: Policy, Legislation, Markets, Technology" -- and several more are in the planning stages.

U.S. Electricity Generation: Prepare for Major Developments

The country and the energy industry are in the middle of what could very well be a time of major change according to one energy expert.

Kate Marks (MRLS graduate, 2009), who is Managing Director of the National Association of State Energy Officials, and I met several days ago. Ms. Marks, who formerly headed the energy division at the National Conference of State Legislatures, is extremely knowledgeable about the challenges and opportunities on the horizon. And she has to be -- she advises the state energy officers in the 50 states and assorted territories. One issue of key importance in Ms. Marks's opinion is transmission.

She began our conversation by pointing out:

"Initially the power system was distributed and generators were located where electricity was used. This all changed in the 1890s when stronger transmission lines were developed that could transfer electrons much longer distances. The economics and ability to serve more people with more power led to consolidation of the smaller, more distributed generation companies into large monopolies. States in turn extended their regulatory power from railroads to electricity, and by 1914 43 states regulated electric utilities. Twenty years later, the federal government passed the Federal Power Act giving the Federal Power Commission jurisdiction over wholesale power sales and interstate transmission."

Nevertheless, the matter of the siting of interstate transmission lines -- and related issues such as planning and paying for these lines -- has traditionally been handled at the state level. Does this approach remain logical in today's world where more renewable sources are being talked about and developed? This is just one of the issues she is working on.

Another is the role of renewable portfolio standards (RPS) as a means of encouraging the integration of new renewable sources into utilities' generating portfolios. To date, more than half the states have adopted RPS's, but there is no federal standard.

Despite its rather low-profile image the electricity sector is enormous, accounting for nearly $350 billion in retail sales in 2007 according to the Energy Information Association. And yet the electricity sector is confronted by enormous challenges.

Individuals such as Kate Marks are helping establish the blueprint for what America's energy future will look like. It is an exciting time to be involved in these issues, and Ms. Marks is right in the middle of them.

New Report From NREL Evaluates Proposed Federal Renewable Standards on the Electricity Sector

The National Renewable Energy Laboratory, the premier renewable energy research institution in the U.S., has published a new study that compares three proposed federal renewable energy standards (RES).

The "Comparative Analysis of Three Proposed Federal Renewable Electricity Standards" analyzes bills introduced by Senator Jeff Bingaman, a New Mexico Democrat, Congressman Ed Markey, a Massachusetts Democrat, and a bill sponsored jointly by Congressmen Henry Waxman, a California Democrat, and Markey.  The analysis compares these bills with the combined impact of the renewable portfolio standards already in place in 28 states.  

According to the study, the Bingaman measure would result in a "peak effective RES" of 12.1 percent.  The Markey measure would result in a peak of 21.8 percent, and the Waxman-Markey bill would result in a peak of 17 percent.  The base scenario -- which takes into account the currently existing state-based renewable energy portfolio standards -- was estimated to generate 10.4 percent of national load in 2020 and 12.4 percent in 2024.

In terms of reductions in carbon dioxide emissions, the Bingaman proposal reduces emissions 95 million metric tons annually in 2030 compared to the base case.  The Markey RES saves an estimated 150 million metric tons annually in 2030 and the Waxman proposal reduces emissions by 435 million metric tons by 2030.

To evaluate the impact of the three federal proposals on the U.S. electricity sector, a team of NREL senior energy analysts used a "detailed least-cost optimization model capable of simulating the special attributes of variable sources like wind and solar power."

The study provides an overview of how the electric utility sector "might develop in the next several decades under various policy scenarios," Douglas J. Arent, NREL's director of Strategy Energy Analysis and Applications Center, said.