“Right now the biggest oil companies are raking in record profits, profits that go up every time folks pull up into a gas station,” President Barack Obama said Thursday morning. “But on top of these record profits, oil companies are getting billions a year in taxpayer subsidies – a subsidy they’ve enjoyed year after year for the last century.”

The president’s pitch in the Rose Garden came just minutes before the Senate rejected a bill that would have repealed the breaks for oil companies. With resistance from every Republican except one and four Democrats from oil-rich states, the measure garnered 51 votes to 47 but it failed to meet the needed threshold of 60. Had it passed the Senate, the GOP-controlled House was expected to kill it.

The measure also would have extended the wind energy production tax credit, along with other renewable energy incentives, and paid for it through the repeal of tax breaks for the five biggest oil and gas companies while preserving incentives for small independent producers of oil and natural gas. About $2 billion a year in breaks for oil companies would have been diverted to finance clean energy development.

“The conversations happening in Washington remain a million miles from the conversations happening in Colorado and the rest of the country,” U.S. Sen. Michael Bennet, D-Colorado, said afterward. “The wind energy tax credit is too important to the thousands of Coloradans whose jobs are at risk for us to give up. Standing on its own, this tax credit has bipartisan support, and I believe it has the votes to pass. We will continue to look for every available avenue to advance the extension to provide certainty to this burgeoning industry, save jobs and move toward a clean energy economy.”

Republicans have attacked the Obama administration’s commitment to alternative fuels as a reason for soaring gas prices. But a CNN/ORC International poll released today shows most Americans blame oil companies for the pain they are feeling at the pump. The poll also indicated that seven in 10 of those surveyed say rising gas prices have caused hardship for them and their families.

It is no secret that oil and gas companies pour obscene amounts of money into the campaign coffers of the very politicians who make their rules. The Center for Responsive Politics notes the “industry has long enjoyed a history of strong influence in Washington. Individuals and political action committees affiliated with oil and gas companies have donated $238.7 million to candidates and parties since the 1990 election cycle, 75 percent of which has gone to Republicans.”

The Koch brothers, billionaire oil barons who own tony homes in the Aspen area, have nearly doubled their contributions to Colorado politicians in each of the last three election cycles.

Tense relationships with Iran, economic concerns in Europe and uncertainty in global oil supply are contributing to high prices at the gas pump but U.S. Sen. Mark Udall, D-Colorado, also pointed out in a recent letter to Secretary of State Hillary Clinton (pdf) “the current disjointed system of energy trade leaves open the possibility of market manipulation and practices that can distort the price of energy. … I strongly believe that we need improved mechanisms for global energy trade to discourage collusion, fraud, and manipulation and to incentivize transparent, competitive, and efficient global energy trade.”

The average price of a gallon of gas in Denver is $3.71, up 9 cents from last week. Prices have been rising quickly across Colorado. Earlier this month, the state had the third least expensive gasoline in the nation. Today Colorado ranks No. 17 on the least expensive list with an average of $3.77.

National Wind Technology Center turbines near Golden. (Photo by Troy Hooper)

U.S. Senator Michael Bennet, D-Colorado, said the state stands “to suffer a huge economic blow if Congress can’t get its act together and extend this critical tax credit. With thousands of high-quality jobs at stake across our state and the entire country, we need to provide certainty for this industry, so we do not derail its current growth,” he said.

There are more than 5,000 wind industry jobs in Colorado, according to Interwest Energy Alliance, and the state is the nation’s eighth-largest generator of wind power and hosts the world’s leading national laboratory in wind and other renewable energy technologies.

If the tax credit expires at the end of the year, the state’s wind energy sector could crash.

“In fact, a crash is already beginning,” Sen. Mark Udall, D-Colorado, said in a prepared statement. “Vestas may lay off more than 80 percent of its workforce in Colorado if the PTC is not extended soon. I’m fighting every day for this extension, and we need to do it now. This isn’t something we can afford to put on the backburner until the last minute.”

All of Colorado’s congressional delegation except Republican Congressman Doug Lamborn say they want to extend the wind tax credit, which debuted in 1992. The credit could still be tied to other bills or come as stand-alone legislation. It has lapsed in the past only to be resurrected later.

Rep. Lamborn

A year ago, he voted against an amendment to repeal $53 billion in oil subsidies. A month later, he voted against a motion that would have stopped oil companies from getting any subsidies. Combined, Lamborn and Colorado’s other conservative congressmen voted 18 times to protect tax breaks for oil companies in 2011. Lamborn’s record (pdf) shows that he has not only routinely sided with tax breaks for oil companies, he stiff-arms renewable energy whenever given the chance. Last July, for instance, Lamborn shot down an amendment to increase funding for energy efficiency and renewable energy, as well as an amendment to boost funding for the Department of Energy’s solar energy program and he voted in favor of eliminating all funding for energy efficiency and renewables.

The closest support Lamborn has shown for the development of wind energy may be his push to mine rare earth minerals, which generate radioactive waste and are used to manufacture wind turbines.

Lamborn’s spokeswoman did not return a message seeking comment for this story but he previously told the Colorado Independent he supports wind energy as part of an “all-of-the-above energy plan.” The spokeswoman also noted that Lamborn supported H.R. 2173, the Advancing Offshore Wind Production Act, which would slash government red tape for wind developers seeking permits.

The congressman has been a good fossil fuel foot soldier. He is the architect of the Pioneers Act, which would fast-track more oil shale exploration in Colorado, Utah and Wyoming. The Bureau of Land Management, however, is recommending a much different plan. Whereas Lamborn wants to open up to 2 million acres of public land in the three states for oil shale exploration, the BLM believes a half-million acres would do. Adding to the drama of dueling blueprints for energy exploration is House Speaker John Boehner, R-Ohio, who announced he plans to use oil shale revenues to rebuild the nation’s crumbling transportation infrastructure. New numbers from the Congressional Budget Office, however, reveal oil shale leases under the Pioneers Act would total less than $100,000 annually over the next decade. Infrastructure improvements are estimated to cost $40 billion.

Rep. Polis

“We’ve heard of Herman Cain’s 9-9-9 proposal; oil shale is the 0-0-0 proposal — no energy, no revenue, and no jobs,” Polis said. “It’s worth research, and there are plenty of research leases out there, but it isn’t ready for prime-time. We shouldn’t risk thousands of real Colorado jobs in agriculture or our recreation economy on a giveaway to oil companies. Congress shouldn’t hand two million acres of public lands to oil shale speculators and lock these areas away from Colorado families, ranchers and recreation jobs.”

Industrial scale oil shale development could require as much as 150 percent of the amount of water the Denver Metro Area consumes annually, according to Bureau of Land Management estimates. Republicans, such as U.S. Rep. Scott Tipton of Colorado, recently voted against an amendment to Lamborn’s bill that would have required the U.S. Geological Survey to complete more study of the effects of oil shale exploration on water resources before allowing commercial development.

“Oil shale is technologically unproven for commercial development and its water demands not fully studied,” said Colorado Wildlife Federation Executive Director Suzanne O’Neill. “It is only common sense that we pursue a research-first approach instead of fast-tracking leasing of additional federal public lands for hoped commercial development that could impact further the lands and waters Coloradans use for economically significant hunting, fishing, and other outdoor recreation.”

Matthew Garrington, co-director of the Checks and Balances Project, released a video this week of what he calls the “oil shale boondoggle” that is the centerpiece of an online ad campaign in the National Journal, Politico, The Hill and the Colorado Springs Gazette:

As Lamborn focuses on oil shale, Sens. Michael Bennet and Mark Udall, D-Colorado, are amplifying their calls for Congress to extend the wind payroll tax credit. Bennet filed an amendment to the transportation funding bill today that would extend the wind-production tax credit for one year.

“Extending the wind energy tax credit is a policy move that can give Coloradans and Americans a great return on investment — a stronger economy, more local jobs and more affordable power for our homes,” Udall said in a statement, which noted that Danish energy company Vestas Wind Systems employs over a thousand people in four manufacturing facilities in Colorado. “With employers like Vestas willing to invest in Colorado, Congress needs to act well before the deadline and give these employers certainty to plan ahead — otherwise those jobs will move to other countries. Failing to extend the production tax credit for wind energy will threaten the industry’s growth and Colorado jobs, and I’ll continue to push my colleagues for a better solution where Colorado keeps our jobs.”

Deora currently heads up “state and regional policy advocacy efforts for Houston-based Horizon Wind Energy’s government affairs team, focusing on promoting investment-friendly environments for renewable energy,” according to a release from Hickenlooper’s transition team.

Replacing former state Rep. Tom Plant as head of the GEO, Deora has a diverse background in renewable and alternative energy development. Before joining Horizon, he was a consultant with McKinsey & Company’s energy practice in Washington, D.C., working for utility and industrial clients. And before that, the former DOW chemical engineer also worked for Calpine Corp. analyzing the performance of natural gas-fired power plants.

Colorado is currently involved in a comprehensive and contentious effort to transition aging coal-fired power plants to natural gas or other sources of cleaner-burning energy as the U.S. Environmental Protection Agency sets a schedule for regulating greenhouse gas emissions. The selection of Deora is viewed positively by environmental groups supportive of that transition and other efforts to increase efficiency and renewable energy production around the state.

“TJ Deora is a strong and exciting pick to lead this critical office,” said Environment Colorado Program Director Pam Kiely. “With the clean energy economy taking off across the state, Deora’s experience in the wind industry makes him a smart choice to take the reins.”

Deora got his bachelor’s degree in mechanical engineering from the University of Texas and his master’s degree in business administration from Harvard Business School.

“Over the past several years Colorado has developed a robust clean-tech industry, ranging from (research and development) to manufacturing and deployment of energy production facilities,” Deora said in a release. “I am honored to have the opportunity to serve our state in expanding its leadership role and leveraging our strong human and natural resources to bring more jobs and investment here to the Rockies.”

Hickenlooper is a former geologist on Colorado’s Western Slope who was laid off during a traditional energy bust in the 1980s. He went on to become a successful Denver restaurateur and the mayor of Denver. During the 2010 governor’s race, Hickenlooper, a Democrat, gave every indication he would continue the push toward renewables and efficiency begun in earnest by Ritter, while at the same time offering an olive branch to traditional extractive energy industries. His selection of Deora indicates he’s at least serious about the renewable energy part of the equation.

“Colorado is clearly a global leader when it comes to wind, solar and other sources of renewable energy,” Hickenlooper said in a release. “We are excited to have TJ Deora join our team as we continue to find ways for the energy industry to grow, create jobs and help boost our state’s economy.”

It is with that in mind, that we bring you Republican Ryan Frazier’s latest ad, where he accused 7th District incumbent Democrat Ed Perlmutter of voting to spend enormous amounts of money bolstering the Chinese economy, while doing nothing to help hungry Americans.

Specifically, he says Perlmutter supported a bill spending billions on wind turbines from China.

The American Wind Energy Association says it’s just not true. According to Laura Stevens, doing PR for the Wind Association, “One hundred percent of wind projects that have received stimulus funds are built in the United States.”

In fact, the stimulus bill generally requires that almost all the money goes to Americans or American companies.

Stevens said that prior to passage of the American Recovery and Reinvestment Act, the wind industry feared that would drop as the economy faltered, instead the industry grew by more than 17 percent in the United States in 2009.

Got a tip? Freelance story pitch? Send us an e-mail. Follow The Colorado Independent on Twitter.

Overall, Xcel ended 2009 as the nation’s number one wind energy provider with 3,200 megawatts across its service territory. That represents 8 percent of Xcel’s fuel load, which is comprised of 15 percent renewable energy, including hydro, solar and other sources.

Among its 2009 accomplishments, Xcel listed SmartGrid City in Boulder, with 47,000 homes connected to the pilot program, and the Solar Technology and Acceleration Center (SolarTAC) facility in Aurora, billed as “one of the largest facilities in the world to test and demonstrate advanced solar technologies.”

The company also talked up its Solar Rewards program, first introduced in Colorado in 2006 and expanded to Minnesota and New Mexico in 2009. The program has accounted for more than 5,000 photovoltaic systems being installed by the end of 2009, and more than $110 million in incentives doled out to customers. The company finished the year as the 6th-largest provider of solar power in the country.

Xcel still relies on coal for 50 percent of its fuel load across its service territory, 24 percent natural gas and 12 percent nuclear. Its new Comanche 3 coal-fired plant will come on line near Pueblo soon, but the company has committed to shutting down or retrofitting several aging coal-fired plants in the state, converting them to natural gas.

The American Recovery and Reinvestment Act funding through the Department of Energy was one of five projects announced Thursday that will leverage an additional $167 million in local government and private sector funding.

The 30-megawatt Northeast Colorado (NECO) Wind Project will be located in Phillips County, although the project at 650-megawatt build-out would be spread over Phillips, Sedgwick and Logan counties. Both senators praised the project as an innovative way for rural Colorado to spur economic recovery and energy independence.

Got a tip? Freelance story pitch? Send us an e-mail. Follow The Colorado Independent on Twitter.

According to the Baltic Course, described as an “International Internet Magazine (Baltic State news & analytics),” an Estonia energy company wants to erect more than 300 wind turbines atop several ash fields left over from extracting oil from shale rock and sand.

Here’s an excerpt from the Baltic Course article:

“Estonian energy giant Eesti Energia is applying for special water usage permit from the Environment Ministry to erect up to 308 wind energy generators and transmission lines in the Livonian Bay, writes Postimees Online/LETA.

“The wind energy generations are planned to be erected in the Ruhnu, Kihnuedela, Kihnukrundi, Kihnulõuna and Jaagupi regions.

“The total area of the wind energy parks together with cable lines is nearly 20,000 hectares.

“Eesti Energia is planning to build new wind energy parks also in Paldiski and on closed oil shale ash fields in Narva.”

This is relevant to Colorado readers because of growing domestic pressure to step up oil shale research and development in the Green River Formation in northwest Colorado, southwest Wyoming and eastern Utah – described as one of the largest oil shale reserves in the world. It may also be of interest to our dedicated Estonia readers.

Got a tip? Freelance story pitch? Send us an e-mail. Follow The Colorado Independent on Twitter.

The state’s biggest ski company — owner of Beaver Creek, Breckenridge, Heavenly (Calif.), Keystone and Vail — has been on a major enviro-tear the last few years, becoming the 25th largest buyer of wind energy credits in the nation, announcing a billion-dollar green-built (LEED-certified) base village called Ever Vail and dramatically chopping its power consumption.

Aspen Skiing Company officials have been more vocal and politically active on the global-warming front, testifying before Congress and backing green candidates in local rural electric co-op board of directors elections, but Vail has been making major strides under the fairly recent tenure of CEO Rob Katz.

Last year Katz announced “energy layoffs” aimed at reducing by 10 percent the $25 million per year the company spends on energy. Monday he announced the company cut energy consumption by 6.1 percent in the previous year and was on track to meet the 10-percent goal in the coming year. That initiative is far more meaningful than buying wind credits, according to Aspen-based energy consultant Randy Udall.

Vail Resorts did make somewhat of a political statement last year by contributing $500,000 to the Democratic National Convention in Denver but nothing to the Republican National Convention in Minneapolis.

The RES proposed in the Energy and Natural Resources Committee, which Udall is a member of, would fall short of Colorado’s RES of 20 percent by 2020 — 10 percent of which was mandated by voters in 2004 (Amendment 37), with the other 10 percent imposed by the State Legislature in 2007. Rural electric co-ops are only subject to a 10-percent mandate.

Udall in a release said he pulled back an amendment that would have required 25 percent by 2025 because he knew there still wasn’t enough support for the higher number. He also objected to a stipulation in the RES that 4 percent of a utility’s 15-percent requirement could come from increasing efficiency in existing, conventional power plants.

The RES deliberation is part of the broader American Clean Energy and Security Act, which some environmentalists have criticized as not going far enough in establishing a carbon cap and a renewable standard. The Eldorado Springs Democrat helped get Amendment 37 passed in 2004, and other Colorado lawmakers are expected to play key roles in crafting the current federal bill.

Here’s the statement Udall released Thursday on the RES debate:

“While I’m disappointed that the RES proposed by the Committee today isn’t stronger, it is a small but important step in the right direction toward setting a national goal to increase our renewable energy use. My own home state of Colorado is an example of the potential benefit for the rest of the country. Since 2004, when Colorado’s RES was first approved by voters, more than 3,000 jobs have been created in the wind and solar energy fields alone.

“A federal standard has the power to create hundreds of thousands of renewable energy jobs, while reducing pollution and helping us end our dangerous addiction to foreign fossil fuels. Today, I offered an amendment that would increase the standard to 25 percent by 2025 because I thought it was important to emphasize that there is support on the Committee for a stronger RES. I withdrew the amendment because I knew there was not enough support for it yet among Committee members.

“We still have much work to do on the Energy Bill as well as on the Renewable Electricity Standard. I led the effort to create an RES in Colorado, and I will continue my efforts to create a strong national RES as well. I firmly believe that with a stronger standard, we will be able to lead the world in renewable energy production. But without it, we may see that opportunity pass us by.”