Montana Legislature
Schweitzer Unveils Clean and Green Energy Plan
By Dan Testa, 3-16-07
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| Gov. Brian Schweitzer and Sen. Jesse Laslovich, D-Anaconda, unveil the governor's "clean and green" energy proposals Friday. Photos by Dan Testa. | |
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Standing in front of a line of solar and battery-powered cars, Gov. Brian Schweitzer unveiled the cornerstone of his “clean and green” energy legislation Friday.
“This will redefine Montana as a leader in energy,” Schweitzer said, as a young staffer in suit and sneakers tried to look discreet as a human easel for a backdrop proclaiming “Montana: The Future of Energy.”
But as he zipped around the statehouse driveway test-driving smaller-than-subcompact, electric vehicles, Republicans were already questioning the governor’s introduction of substantial energy legislation on the 56th day of the session.
Schweitzer’s initiative encourages new energy development by giving property tax breaks to investors willing to develop alternative fuels like biodiesel, or for power plants that take steps to keep greenhouse gas emissions like carbon from reaching the atmosphere.
Manufacturers of renewable energy components like wind turbines, solar fuel cells and hybrid or electrical cars would get their property taxes slashed in half.
A coal-powered energy plant that uses carbon sequestration would see its property taxes on that equipment reduced by 50 percent. But a new coal plant that fails to sequester carbon would get its property taxes doubled.
The pipelines and energy transmission lines that carry clean energy or carbon to its sequestration sites receive a 75 percent tax cut.
And as an immediate conservation incentive, licensing fees are waived for new cars that get 35 miles-per-gallon or better.
Referring to Schweitzer’s February 2006 appearance promoting clean-coal technology on CBS News’ “60 Minutes,” Senate Minority Leader Corey Stapleton wondered what took so long.
“It’s been a year since he was on ‘Sixty Minutes,’” Stapleton said. “Why didn’t he introduce this in January or February?”
Schweitzer fires back that the main points of the legislation have been public for months. If his bill is getting a late roll-out, Schweitzer added, it’s because legislative staffers have been swamped with the demands of drafting the eight GOP budget bills introduced on the session’s 40th day.
The sponsor added that the language of such a complex bill requires careful consideration.
“We wanted to make sure that we got it right,” said Sen. Jesse Laslovich, D-Anaconda.
But as of Friday afternoon, the bill was still only available in a preliminary form and a hearing had yet to be scheduled. The deadline for the bill to make it out of the Senate is April 3.
Stapleton also charges that carbon sequestration technology is too new to provide any short-term foreseeable benefits, if at all.
“It’s like watching Star Trek and assuming that it’s all true and real,” Stapleton said, “like you can get a tax credit for a photon absorber.”
House Federal Relations, Energy and Telecommunications Committee Chair Alan Olson, R-Roundup, sees some inherent problems with giving tax breaks to transmission lines based on the amount of clean energy carried.
But with Schweitzer’s bill, the more green energy transmitted, the bigger the tax cut, so carriers have an incentive to avoid carrying energy that doesn’t meet “clean and green” standards, but is otherwise legal.
“It doesn’t come right out and say that it’s a carbon tax,” Olson said. “I’m not out for punishing somebody that meets the standards of the law.”
Olson calls the bill “a good start” but doesn’t think it will be the catalyst to coal development in eastern Montana desired by many in his party.
Senate Natural Resources Committee Chair Greg Lind, D-Missoula, said incentives are just what’s needed to drive sequestration technology development and compel energy producers that don’t capture carbon to do so.
“If you go out and capture carbon now, you are at a competitive disadvantage,” Lind said. “If folks are compelled or incited in some way to do it, it will put a shove behind the technology.”
As for concerns that his plans rely too heavily on untested technology, Schweitzer’s reply is simple.
“It’s OK to lead once in a while.”
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Comments
Wonder of the car will haul a bale of hay and bucket of oats?
Boy I'm sure glad the Forgotten counties are in Montana..
Giddup!!
>>>>
For nearly half his term in office, Schweitzer has been promoting coal-to-liquids plants as the pillar of his energy policy. Last month the governor announced an agreement with a team of private companies to build one of the country’s first integrated gas combined cycle (IGCC) plants to gasify, rather than ignite, coal. Schweitzer touts it as the key to reducing American dependence on foreign oil, and claims the process removes most hazardous pollutants emitted from conventional coal plants. He also claims that carbon dioxide can be removed during the process and later sequestered underground where it won’t contribute to global warming. Bob Raney is a member of the Montana Public Service Commission. For more than 18 months he’s been involved with a Midwest Governors Association (MGA) working group on coal gasification and carbon sequestration. According to Raney, on multiple occasions when he has tried to get an audience with the governor and his staff to discuss IGCC issues, he’s been met at the door by Walter.
“When I go to talk to the administration about this I talk to Walter. That’s who they give me,” Raney said.
Schweitzer’s response is that his brother has the same rights every citizen has to participate in state government. Raney confirmed that Walter doesn’t merely observe meetings, but plays an active role in discussions.
“Walter is engaged,” Raney said, adding that he’s left meetings at the capitol under the impression that the governor’s brother was speaking on behalf of the administration.
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I guess the stench of nepotism would be masked by the Billings refinery odors.