DENVER—Business and political leaders are banking on Colorado’s new energy leadership to give it a big edge in the competition for billions of federal stimulus dollars promoting renewable energy and energy efficiency.
Colorado expects $130 million for weatherization of homes and the state energy program. Communities are in line for block grants. And businesses and researchers will compete for undetermined grants and loan guarantees.
President Barack Obama’s $787 billion package includes about $50 billion for renewable energy and efficiency programs.
Colorado’s Democratic leaders estimate the package will create or save about 59,000 jobs in the state. There’s no estimate for energy industry jobs, but state officials say $80 million earmarked for weatherization and new eligibility requirements will nearly triple the Colorado homes in the program.
Another $50 million is set aside for state energy programs, including training people for energy jobs and projects that are ready to go and just need financing.
“Colorado can be used, in many respects, as a template for how the new energy economy works,” said Gov. Bill Ritter.
After all, “new energy economy” was a well-known catch phrase here before Obama talked about it during last year’s campaign and while stumping for his recovery plan. Ritter used it as a slogan in his 2006 gubernatorial race, and it became a rallying cry as the Legislature in 2007 required that Colorado utilities get 20 percent of their power from renewable energy sources by 2020.
Ritter credits that record for Obama’s decision to sign the stimulus bill in Denver in February. The president praised Colorado as a leader in clean energy, and for good reason.
Solar, wind and biofuel companies moved here to be close to the National Renewable Energy Laboratory in Golden and other federal labs. The state’s research universities, including Colorado State University, the University of Colorado and the Colorado School of Mines, are also draws.
“Colorado is extremely well positioned,” said Kyle Simpson, energy policy director at Brownstein Hyatt Farber and Schreck, a Denver-based lobbying and law firm that is seeking to advise the Department of Energy on its loan guarantee program.
Another plus for Colorado is an infusion of money for “smart-grid” technology, said Simpson, a former energy official in the Clinton administration.
Minneapolis-based Xcel Energy is transforming the electric grid in Boulder by installing meters capable of two-way communication and other technology so customers can better control how they use energy, and the utility can better plan what power it needs.
In Fort Collins, a project called Fort ZED, involving the city, civic groups and CSU, will create a zone where energy efficiency and renewable energy cut power use.
“The fact is, we’ve gotten a two-year head start on developing a lot of this within the state, and that makes us much more competitive” for federal dollars, said Tom Plant, director of the Governor’s Energy Office.
Denmark-based Vestas Wind Systems operates one wind-turbine manufacturing plant in Colorado and plans three more. Ascent Solar Technologies Inc. is opening a headquarters and plant that will employ up to 200 people in Thornton.
Ashu Misra, Ascent’s vice president of operations, said what Colorado lacks in incentives due to budget constraints it makes up for in other amenities: a highly educated work force, federal labs and its 300-plus days of sunshine a year.
“This stimulus has really given them an extra opportunity,” Misra said of the state. “I think Colorado really wants to capitalize on it.”
Ascent, which makes thin-film solar generating modules, may apply for loan guarantees for renewable energy manufacturers under the stimulus package as it builds its new headquarters, Misra said.
“Today, the capital markets are very tight and we’re a company that requires a lot of money to expand,” Misra said.
Misra noted that the $700 billion fiscal bailout approved by Congress in October included a 30 percent tax credit for homeowners who install solar systems. The previous tax credit was capped at $2,000.
In Broomfield, Bestway Insulation has expanded this year and expects to add more employees once homeowners start qualifying for the weatherization funds.
“I think it’s going to get really, really busy,” Bestway owner Debbie Weingardt said.
The 34-year-old company added one employee every two weeks last fall and increased its fleet from three to 10 trucks.
“We’re going to be moving into a bigger building. We’ve outgrown our place,” said Weingardt, whose company insulated the governor’s mansion.
With incentives, the number of Colorado households in the weatherization program could increase from 4,000 to 12,000. Plant, of the Governor’s Energy Office, said the state will use some federal funds to make sure there are enough companies to do the work.
The office also plans what Plant believes will be a one-of-a-kind information system allowing Coloradans to enter their addresses and find out what energy tax credits and incentives are available if they want to install solar systems or weatherize their homes. It will list companies.
“We’re focusing in on what we can do to stimulate the new energy economy, create jobs, but also support the industry going forward,” Plant said.
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