The "New Energy Economy"

This year’s legislature has seen a whole slew of bills that would subsidize the “New Energy Economy”, Governor Bill Ritter’s legacy and proudest accomplishment.  Government believes it needs to nurture this fledgling industry until it develops the technology to power our economy.  Unfortunately, this approach rarely works.  When it does, it can be attributed to coincidence or a “lucky guess” by the government.  That’s far more credible than believing that government has the wisdom, foresight, or knowledge to understand which industries are worthy of coddling, and just how best to coddle them.

Subsidies create dependence.  Once an industry begins to receive a subsidy, it will continue to clamor for that subsidy. The industry will howl about its destruction and the loss of jobs without the subsidy.  Witness the recent solar industry furor over Xcel Energy’s plan to reduce its subsidies. This brief video demonstrates the faulty reasoning behind these subsidies, while giving an entertaining look at how reason will not sway a liberal bent on coercing us all to live a green life.

Studies have shown that the “New Energy Economy” in Europe, where they have been coddling much longer than we have, has resulted in the loss of 2 – 4 jobs for every green job created.

Here is a partial list of green bills that have come to the legislature this session:

HB 11-1132 – On-Bill Energy Efficiency Improvement Financing - killed by House Transportation.  This bill would have allowed utilities to provide financing for energy efficiency improvements to private properties. A bad idea considering the foreclosure rate.  Ratepayers will be left holding the bag if a recipient of this subsidy can’t pay its bills.

HB 11-1160 – Governor’s Energy Office Green Building Incentive Program – Passed the house.  Gives money to certain new home buyers for energy efficiency improvements to their current inefficient homes.

HB 11-1170 – Extend Credit for Alternate Fuel Facilities – Passed Natural Resources committee, referred to Finance.  Provides tax credits for up to 20% of the cost to build or buy a facility for fueling vehicles with alternate fuels.

HB 11-1228 – Economic Development Through Distributed Generation – killed by natural Resources Committee.  Commissions a study to determine economic benefits of feed-in tariffs, a major cause of the collapse of the solar industry in Spain.

HB 11-1255 – Colorado Alternative Energy Park Act – Introduced, assigned to finance, hearing scheduled March 24.  Uses Tax Increment Financing and other tax incentives to subsidize alternative (green) energy. Even requires that transportation for the park be “energy efficient”.

SB 11-032 – On-Bill Financing Program for Energy Cost Savings – Assigned to Natural Resources. Similar to HB 1132, allowing utilities to provide financing for energy efficiency improvements to private properties.

SB 11-047 – Bioscience and Clean Technology Reinvestment – Passed Business, Labor and Technology, referred to Appropriations.  Provides grants for bioscience and clean technology research.  Claims that such funding has been beneficial for Colorado’s economy.

SB 11-130 – Transparency Building Energy Performance – Assigned to Natural Resources.  Requires utilities to monitor and report energy consumption by all commercial buildings to the EPA.  This is clearly invasion of privacy and a step toward EPA regulation of all energy consumption.

SB 11-131 – Colorado Smart Grid Task Force Recommendations – killed by Natural Resources.  Moves Colorado toward implementation of a “smart grid”, which can eventually be used to restrict consumer use of power.  Also integrates “feed-in tariffs”, which will require ratepayers to pay cost plus a profit to every alternative energy supplier, regardless of efficiency or cost.