State Energy Policy

Interim Legislative Energy Committee Update

[August 2010]

Renewable energy gets a boost

Montana’s renewable energy standard (passed in 2005) requires the state’s regulated utilities to acquire 15% of their energy from renewable resources by 2015. The law helped jump-start investment in Montana’s vast renewable energy resources. Now that utilities are certain to meet that compliance deadline, it’s time to plan for what happens after 2015. The legislature’s Energy and Telecommunications Interim Committee (ETIC) recently agreed. The Committee voted 7 to 1 to support a bill that would require utilities to acquire 20% of their energy from renewable resources by 2020, and 25% by 2025.

Renewable energy has proven to be one of the cheapest and least risky energy resources in utility portfolios and helps utilities reduce their greenhouse gas emissions. But renewable resources have a difficult time competing in a market dominated by old fossil-fuel plants that still externalize most of their pollution costs.

The renewable energy standard creates a needed incentive for utilities to invest in renewable resources. In the 2007 and 2009 legislative sessions farmers, business owners, and environmentalists supported increasing the standard. ETIC’s recommendation should help advance renewable energy at the 2011 Legislature.

Energy policy hits a roadblock

ETIC did not have as much success developing a broad State energy policy. For more than a year, the Committee has been discussing how to improve Montana’s outdated energy policy. But the Committee faced problems from the start.

The 2009 law that required the Committee to undertake this task included wording that was heavily biased toward fossil fuel development. For example, the first policy issue in the law was “increasing the supply of low-cost electricity with coal-fired generation.” This and other provisions created an inevitable division among Committee members.

Until its May 2010 meeting, the Committee had tried to move forward with compromise wording. Then, lobbyists for the oil, gas, and coal industries used a back door approach to insert wording in the draft legislation that supported a laundry list of fossil fuels over other energy resources. When the Committee met in July to discuss these changes, Sen. Cliff Larsen (D-Missoula), Sen. Ron Erickson (D-Missoula), and committee chair Rep. Robyn Driscoll (D-Billings) tried to make the wording more accurate and fair, and to include some reference to climate change. Committee Republicans countered by saying they had seen no evidence that climate change was real. Based on that belief, the Republicans voted against nearly all of the Democrat-proposed amendments.
When Republicans, in turn, failed to muster enough votes to insert the wording drafted by fossil fuel lobbyists, they refused to vote to support the overall energy policy. The Committee adjourned, deadlocked.

The Committee has a meeting scheduled for September 10th. Both the renewable energy standard and the energy policy are on the agenda.

IN THE NEWS

Panel OKs increasing renewable energy mandates (by Mike Dennison, July 31, 2010) A leading environmental lobby said...“We have tremendous potential to provide renewable resources, both inside and outside of our borders. That will be an economic boon for the state.” ~Anne Hedges, program director for the Montana Environmental Information Center.

For more information

For more information on ETIC such as agendas, policy statements, and proposed bill drafts for the 2011 Legislative session go to: www.leg.mt.gov/css and click on “Committees” and then on “Interim.”

The Energy and Telecommunications Interim Committee (Energy Committee) is charged with revising the State’s current energy policy. This responsibility is described in 90-4-1001, MCA.

Read MEIC's comments to the Committee
Read the Executive Summary of the National Academy of Sciences report, "Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use" (also available for downloading here)
Learn more about this committee and track its progress.
CLICK HERE FOR SUGGESTIONS FOR WRITING COMMENTS TO THE ENERGY COMMITTEE

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	You are here: Home → Energy → Energy Policy → State Energy Policy Document Actions State Energy Policy Interim Legislative Energy Committee Update [August 2010] Renewable energy gets a boost Montana’s renewable energy standard (passed in 2005) requires the state’s regulated utilities to acquire 15% of their energy from renewable resources by 2015. The law helped jump-start investment in Montana’s vast renewable energy resources. Now that utilities are certain to meet that compliance deadline, it’s time to plan for what happens after 2015. The legislature’s Energy and Telecommunications Interim Committee (ETIC) recently agreed. The Committee voted 7 to 1 to support a bill that would require utilities to acquire 20% of their energy from renewable resources by 2020, and 25% by 2025. Renewable energy has proven to be one of the cheapest and least risky energy resources in utility portfolios and helps utilities reduce their greenhouse gas emissions. But renewable resources have a difficult time competing in a market dominated by old fossil-fuel plants that still externalize most of their pollution costs. The renewable energy standard creates a needed incentive for utilities to invest in renewable resources. In the 2007 and 2009 legislative sessions farmers, business owners, and environmentalists supported increasing the standard. ETIC’s recommendation should help advance renewable energy at the 2011 Legislature. Energy policy hits a roadblock ETIC did not have as much success developing a broad State energy policy. For more than a year, the Committee has been discussing how to improve Montana’s outdated energy policy. But the Committee faced problems from the start. The 2009 law that required the Committee to undertake this task included wording that was heavily biased toward fossil fuel development. For example, the first policy issue in the law was “increasing the supply of low-cost electricity with coal-fired generation.” This and other provisions created an inevitable division among Committee members. Until its May 2010 meeting, the Committee had tried to move forward with compromise wording. Then, lobbyists for the oil, gas, and coal industries used a back door approach to insert wording in the draft legislation that supported a laundry list of fossil fuels over other energy resources. When the Committee met in July to discuss these changes, Sen. Cliff Larsen (D-Missoula), Sen. Ron Erickson (D-Missoula), and committee chair Rep. Robyn Driscoll (D-Billings) tried to make the wording more accurate and fair, and to include some reference to climate change. Committee Republicans countered by saying they had seen no evidence that climate change was real. Based on that belief, the Republicans voted against nearly all of the Democrat-proposed amendments. When Republicans, in turn, failed to muster enough votes to insert the wording drafted by fossil fuel lobbyists, they refused to vote to support the overall energy policy. The Committee adjourned, deadlocked. The Committee has a meeting scheduled for September 10th. Both the renewable energy standard and the energy policy are on the agenda. IN THE NEWS Panel OKs increasing renewable energy mandates (by Mike Dennison, July 31, 2010) A leading environmental lobby said...“We have tremendous potential to provide renewable resources, both inside and outside of our borders. That will be an economic boon for the state.” ~Anne Hedges, program director for the Montana Environmental Information Center. For more information For more information on ETIC such as agendas, policy statements, and proposed bill drafts for the 2011 Legislative session go to: www.leg.mt.gov/css and click on “Committees” and then on “Interim.” The Energy and Telecommunications Interim Committee (Energy Committee) is charged with revising the State’s current energy policy. This responsibility is described in 90-4-1001, MCA. Read MEIC's comments to the Committee Read the Executive Summary of the National Academy of Sciences report, "Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use" (also available for downloading here) Learn more about this committee and track its progress. CLICK HERE FOR SUGGESTIONS FOR WRITING COMMENTS TO THE ENERGY COMMITTEE Montana Environmental Information Center Street Address: 107 W Lawrence St. #N-6, Helena, MT 59601 Mailing Address: P.O. Box 1184 Helena, MT 59624 Phone: (406) 443-2520, Fax: (406) 443-2507, meic@meic.org	Stay Connected Facebook Twitter Blog YouTube Do you know... Of the 150 glaciers present in Glacier National Park 100 years ago, how many remain today? 7 26 52 85

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