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CHAPTER THREE – FIRST STEPS ARE GIANT STEPS Workers from Texas Placement of Fort Worth work on the foundations of wind towers at the Cedar Point Wind Project outside of Limon. by voters through Amendment 37. It also required that rural electric associations – which had largely chosen to opt-out of Amendment 37 – meet a 10 percent renewable energy goal by 2015, assuring an economic boost for rural areas as well as Colorado’s Front Range. Matt Baker, a leading environmentalist at the time and now a member of the state’s PUC, called the new standard “the most important environmental legislation in 20 years.” Another bill encouraged the development of new transmission lines, providing utilities more financial flexibility to build systems that would import green electrons from large-scale wind and solar projects. By removing barriers to transmission build-out, the bill helped address the “chicken-andegg” cycle that left wind-energy developers uneasy about building projects without adequate transmission, and left utilities reluctant to build transmission without wind turbines. A companion bill also set up a task force to map Colorado’s rich renewable energy zones for solar, wind, geothermal and other resources. This project provided project developers a critical tool to see where the most important resources existed in the state, and where transmission lines might need to be constructed to bring those clean electrons to market. A “net-metering” bill the first year (and a follow-up bill the next year) established a statewide policy that Coloradans be credited for the power they generated from their own rooftop solar or small wind system. That reduced the cost for consumers and simplified the process of installing renewable energy systems in the state. Another important bill assured big energy efficiency gains by requiring dramatic increases in “demand-side management” from investor-owned electric and gas utilities. The bill created tools for the utilities to provide more incentives for residences and businesses to upgrade equipment, furnaces, appliances, insulation and reduce consumption. These laws formed the fundamental building blocks for the New Energy Economy. The Governor ‘s repeatedly vocalized support for new energy concepts alone was a draw to companies big and small looking for the right place to open or expand. Laws driving more renewable energy and energy efficiency would also mean jobs – jobs for workers to construct solar collectors, insulate homes and install furnaces; jobs tied to companies that build solar panels, wind turbines; and jobs around research and development that expanded in the state as venture capitalists and technology firms eagerly planted their dollars and themselves in Colorado’s fertile new energy ground. 14
CHAPTER THREE – FIRST STEPS ARE GIANT STEPS Policy The Governor also took ambitious policy steps outside the legislature in his inaugural year, especially in his first 100 days, with key executive orders and personnel appointments. He redefined the mission of the state’s Office of Energy Conservation and Management, converting it to the Governor’s Energy Office, with a clear goal to build markets for the New Energy Economy through programs that would help residents and business owners incorporate clean energy and energy-saving measures. He also issued “Greening Government” goals directing state agencies to reduce energy consumption by 20 percent, water use by 10 percent, paper consumption by 20 percent and petroleum use by 25 percent – all by 2012. “It’s important that state government leads by example,” he said. In another bold step, the Governor appointed Colorado’s first climate change advisor and created a cross-departments climate group charged with creating a Colorado Climate Action Plan. The plan, published by the end of 2007, set out in detail how Colorado would make progress toward reducing greenhouse gas emissions 20 percent by 2020 and make even deeper cuts by 2050. The plan proposed initiatives that could reduce fossil fuel emissions in sectors across Colorado – from agriculture to power production to transportation. The Climate Action Plan became a driving document for the work of the Governor’s Energy Office, with initiatives adopted by program managers who set about partnering with utilities, community groups, non-profits, fellow government agencies, legislators and the private sector to implement them. The Governor also supported funding for the Colorado Renewable Energy Collaboratory, a partnership between the National Renewable Energy Laboratory and Colorado’s three major science research universities: Colorado State University, the University of Colorado and the Colorado School of Mines. The Collaboratory’s highest priority would be to expedite the development and transition of new energy technologies to the marketplace. The state’s Public Utilities Commission, which regulates Colorado’s investorowned utilities, was revamped in Governor Ritter’s first year, with appointments who – as the governor pledged during the campaign – would “share my vision for a cleaner and more secure energy future.” Two new members in 2007 and a third in early 2008 were much more K E Y S TO T HE N E W E NERGY E C O N O M Y Renewable Energy Standard Colorado’s work to develop a in his final year in office – with both requirement for utilities to generate increases approved by the state a percentage of their electricity from legislature. Solar, wind and other clean sources – a Renewable Energy renewable energy companies cite the Standard (RES) – has been the single RES repeatedly as a key factor in their greatest driver in building a New decisions to relocate to, or expand Energy Economy. within, Colorado. The state’s RES grew from 10 percent An RES creates market certainty for after voters first approved it in 2004 renewable energy companies selling to 20 percent during Governor Ritter’s rooftop solar, small wind turbine first term, and finally to 30 percent markers and developers constructing utility-scale wind and solar farms. Colorado’s RES has undergone important adjustments at every turn, but the latest version may provide the best lesson for policy makers. Colorado’s RES now includes a 3 percent “carve out” for distributed renewables. That means that utility companies must obtain 3 percent of their electricity from smaller-scale systems on residential rooftops, small, environmentally sensitive hydro-electric projects or small wind turbines often found on rural farms and ranches. This requirement guarantees an explosive business opportunity – and jobs – for companies installing distributed renewables and has been a key force in Colorado’s dramatic growth in solar photovoltaic firms. The impact of an expanded RES in 2010 was immediate. Jeff Scott, founder and president of SolSource Inc., one of many Colorado-based solar firms, announced on the day the bill was signed: “We will be training and employing 20 to 30 new people in the next 30 days, and we see (this bill) signing by Governor Ritter as a commitment to supporting Colorado clean-tech jobs.” 15
Page 1 and 2: A BLUEPRINT FOR A New Energy Econom
Page 3: A LETTER FROM GOVERNOR RITTER A Let
Page 7: INTRODUCTION - THE NEW ENERGY ECONO
Page 10 and 11: CHAPTER ONE - SETTING THE STAGE ris
Page 13 and 14: CHAPTER TWO - CAMPAIGNING ON THE NE
Page 15: CHAPTER TWO - CAMPAIGNING ON THE NE
Page 20 and 21: CHAPTER THREE - FIRST STEPS ARE GIA
Page 23 and 24: CHAPTER FOUR - SUSTAINING MOMENTUM
Page 25: CHAPTER FOUR - SUSTAINING MOMENTUM
Page 28 and 29: CHAPTER FIVE - ECONOMIC IMPACT Rene
Page 30 and 31: CHAPTER FIVE - ECONOMIC IMPACT Jose
Page 32 and 33: CHAPTER FIVE - ECONOMIC IMPACT Trad
Page 35 and 36: CHAPTER SIX - MARKET TRANSFORMATION
Page 37 and 38: CHAPTER SIX - MARKET TRANSFORMATION
Page 39 and 40: Note: 1/2” flap for gluing back p

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