Governor should veto misguided hydro bill

Montana should continue its forward progress on renewable energy by diversifying its economy with the growing clean tech sector.

Unfortunately, the Legislature passed Senate Bill 114 in a closely divided vote this month that takes a backward-looking approach to energy in Montana.

In 2005, Montana adopted a renewable portfolio standard (RPS) — requiring that electric utilities get 15 percent of their energy from renewable sources. It's a smart, forward-looking energy policy that is working well to deliver the benefits of renewable energy, including saving consumers money by reducing their exposure to fuel price volatility.

SB 114 would reverse course and count hydroelectric power built long before the RPS became law in 2005 toward the state's renewable energy goal.

If you set a New Year's resolution to get fit, would you later decide to count a 1990s aerobics class toward this year's resolution? That's essentially the same logic employed in SB 114, and it doesn't pass the common sense test.

Montana should stick with a good thing. A bipartisan committee found the state's RPS has created economic development, construction, and permanent operations jobs in rural Montana, all while having a "negligible" impact on electric rates. For example, the report found that every year the Judith Gap wind farm pays about $1.5 million to Wheatland County in property taxes, more than $400,000 in lease payments to landowners, and $55,000 to the state school trust.

The legislative study committee agreed that Montana's renewable energy target should not be decreased or eliminated. That's because it is a realistic, worthy goal.

NorthWestern Energy and Montana-Dakota Utilities, the two investor-owned utilities that the RPS applies to, are already complying with the 15 percent renewable energy goal and the need for future renewable energy procurements will only come with additional load growth.

Let's be clear that the problem with this bill has nothing to do with whether hydroelectricity is classified as renewable energy. It clearly is, and in fact, is a fantastic source of emission-free energy that is a key part of a diverse energy portfolio. In addition, wind and hydro work great together as the output from hydroelectric dams can be used to balance wind and solar energy to maintain consistent and reliable power supplies in the state.

The problem with the bill, rather, is that it looks backward and not forward: The very essence of RPS laws on the books in 29 states is to drive new investments and develop new sources of clean, domestically produced energy. Furthermore, new hydro investments — including upgrades and efficiency improvements — are eligible to count toward the Montana RPS just as is a new wind or solar project.

SB114 would wipe out any demand for new projects, halt new innovation and new economic investment in renewables and slow down Montana's progress in modernizing our electric grid. SB 114 is a zombie bill that has been rejected by our legislators and governors in various forms every year since at least 2009. It is essentially part of a tired campaign by out-of-state interests looking to roll back progress on renewable energy nationwide by including pre-existing resources in RPS laws.

Gov. Steve Bullock should veto SB 114 to keep Montana a leader on renewable energy and maintain forward momentum and continued investment in Montana's economy.

Ron Cooper lives in Bozeman and is a partner is Wind Chasers, a wind and renewable energy company with active development projects in Montana.