Carbon and Climate Policy Brief - Colorado 2021
This “secondary policy brief” was completed as a project for a Graduate-level Politics and Policy class. My classmates were Eryka Thorley, Jad Freiha, and Ashley Duncan.
Background: Carbon offsets are a rapidly growing market with an expected growth ranging from $700.5 million in 2027 (marketwatch.com) to $100 billion market by 2030 (Bloomberg.com). Pair this with most every community in the United States employing strategic climate goals while working within archaic Public Utility Commission regulations, it is imperative that we rethink carbon offsets and institutionalize them in the 'local’. Global, national, state and community governments are weighing the importance of climate goals and action more strongly than ever and local carbon reductions are a key solution to reducing emissions and enhancing resilience.
STATE:
Colorado Climate Bills Passed in 2021 Legislative Session:
➢ HB1266 Environmental Justice Act | Task Force, Defines Disproportionately Impacted Communities
➢ HB1189 Regulate Air Toxics | Facilities must monitor hydrogen cyanide, hydrogen sulfide, benzene and “any other hazardous air pollutant that the commission lists”
➢ SB246 Electric Utility Promote Beneficial Electrification | Guidelines, regulations for electrification
➢ SB264 Adopt Programs Reduce Greenhouse Gas Emissions Utilities | “Clean heat” standards
➢ HB1238 Public Utilities Commission Modernize Gas Utility Demand-side Management Standards
➢ HB1286 Energy Performance for Buildings | Energy data collection - large buildings, benchmarking
➢ HB1162 Management of Plastic Products | Bans plastic bags starting in 2024
➢ HB1260 General Fund Transfer Implement State Water Plan | $20m to Water Conservation Board
➢ HB1326 2020-21 General Fund Transfer Support Department of Natural Resources Programs | $25m
➢ SB112 General Fund Transfer to Capital Construction Fund State Parks | $20m
Colorado Climate Action Plan | HB1261 (2019)
➢ Amends Air Pollution Prevention and Control Act, Colo. Rev. Stat § 25-7-101
➢ Sets statewide emissions goals (2005 baseline, CO2e): 26% by 2025, 50% by 2030, 90% by 2050
➢ Defines greenhouse gas as: Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons, Perfluorocarbons, Nitrogen Trifluoride (NF3), Sulfur Hexafluoride (SF6)
➢ Air Quality Control Commission sets the rules, missed July 2020 deadline
➢ In Jan 2021, Colorado Greenhouse Gas Pollution Reduction Roadmap released
Colorado Reduce Greenhouse Gases Increase Environmental Justice |SB21-200 (2021, lost)
➢ Requires the air quality control commission (AQCC) to adopt rules that will result in the statewide reduction of greenhouse gas (GHG) emissions of 26% by 2025, 50% by 2030, and 90% by 2050, as compared to 2005 emissions, was designed to be a follow-up to the “climate road map”
COUNTY :
Boulder County Sustainability Tax / Matching Grant
➢ Nov 2016 voters approved Sustainability Tax ballot initiative – portion of sales and use tax allocated for sustainability infrastructure development
➢ Includes grant funding for communities with sustainability focused initiatives
Boulder County Energy Impact Offset Fund
➢ Cannabis businesses required to track, report, and offset 100% of their electricity use
➢ Offset options: on-site solar, subscribe to local solar garden, pay Energy Impact Offset Fund
➢ Overseen by Bounder County Climate Initiatives Department
Gunnison County
➢ 2020 Climate Action Report proposes greenhouse gas emissions reductions by 2030:
Residential –9% | Commercial –9% | Surface Travel –25% | Air Travel –21% | Landfill –21%
➢ States Gunnison County housing has worse energy efficiency than Climate Zone 7 Average ➢ Proposed policy options for improving energy efficiency of buildings in Gunnison County ➢ Proposed policy options for reducing transportation emissions in County
MUNICIPAL:
Nederland Resolution 2017-10
➢ August 15 , 2017, Nederland passed a unanimous resolution to reach 100% renewable energy for their electric grid by 2025. The 42nd community in the U.S. to commit to this goal
VOLUNTARY:
Colorado Carbon Fund
➢ Mission objective: mitigate climate change and the risks imposed on Colorado
➢ Funding: Through donations and grants from donors and a “Go Carbon Neutral License Plate” for sale on their website (+1000 sold)
➢ Highlights: “Southern Ute Methane Capture,” “Larimer County Landfill Methane Capture,” “Jager Avoided Grassland Conversion”
Finger Lakes Climate Fund
➢ Low to moderate income households in Finger Lakes benefit from the funds dedicated for energy efficient residential projects
➢ Ex. energy efficient upgrades: insulation, air sealing, energy efficient heating equipment, etc.
➢ Energy efficiency upgrades are carried out by Building Performance Institute accredited contractors using guidelines provided by the New York State Energy Research and Development Authority
➢ Benefit: reduce GHG emissions, support low-income families, and stimulate local economy
OTHER LEGISLATION OR CARBON RELATED OPPORTUNITIES:
New York State Climate Leadership & Community Protection Act SB6599 (2019)
Amends environmental conservation law, adding a Climate Action Council, greenhouse gas emissions limits, promulgates regulations to achieve emissions limits, creates Climate Justice Working Group, defines the value of carbon, creates community air monitoring program, and reporting requirements.
IRS Code 45Q (Carbon Sequestration Tax Credit)
➢ Geologically sequestered carbon dioxide credits $23.82-$31.77/ton in 2020 (dependent on equipment age), rising to $50/ton in 2026
➢ Geologically sequestered carbon dioxide with Enhanced Oil Recovery: $11.91-$20.22/ton in 2020, rising to $35/ton in 2026
➢ Other qualified uses of carbon dioxide: $20.22/ton in 2020, rising to $35/ton in 2026
➢ Claims periods, qualifying facilities (must build by 2026), annual capture requirements, eligibility
➢ Direct Air Capture included, must capture 100,000 metric tons
➢ Bipartisan Budget Act of 2018 expanded and extended the 45Q tax credit (added OR and DAC)
NY Climate and Community Investment Act A6967 / S4264 (in committee)
➢ Enacts the climate and community investment act. This act seeks to transition NY to 100% renewable energy, create hundreds of thousands of jobs, protect workers currently in the fossil fuel industry and support the communities most impacted by climate change and pollution.