Saturday, October 13, 2012

City of Boulder 2A – Climate Action Plan Tax Extension

Passage of 2A would renew the Climate Action Plan electricity consumption tax through March 31, 2018 to continue funding efforts to reduce greenhouse gas emissions.  Here is a timeline of Boulder’s efforts to reduce greenhouse gas (GHG) emissions.

2002 – City Council passes Resolution 906 setting a goal of reducing Boulder’s GHG emissions to 7% below 1990 levels by 2012, in alignment with the Kyoto Protocol. 
2005 -- The city’s goal requires a 24% reduction of GHG emissions from 2005 to 2012. 
2005 and 2006 – Programs to reduce GHG emissions are funded by an increase in the tax the city charges trash haulers. 
2006 – City Council adopts its Climate Action Plan (CAP), and City of Boulder voters pass Ballot Issue 202, a Climate Action Plan tax on the consumption of electricity through March of 2013.  Boulder is the first US city to tax itself to reduce GHG emissions.
2009 – Re-tooling of CAP strategy.   Meanwhile, every year new CAP programs get introduced.  Some old programs are discontinued. 
2011 – City of Boulder voters pass Ballot Issues 2B and 2C to pursue and pay for starting a municipal electric utility.  One argument for passing 2B and 2C is that Boulder is never going to meet its CAP goal until its electric utility provides more renewable sources of electricity.  Electricity used in buildings is responsible for close to 60% of Boulder’s GHG emissions. 
May 2012 – A Rocky Mountain Institute report analyzing 19 CAP programs concludes that they have saved energy and reduced emissions at a reasonable cost, makes suggestions for process improvements and recommends continued funding for CAP programs.
July 2012 – The Brendle Group presents a report suggesting that in the future customers who pay more of the CAP tax should receive a proportionate share of the benefits.  Their proposed model assumes a 10-year extension of the CAP tax and gets Boulder 50% of the way to the CAP goal.

No increase in the current tax is authorized.  The city didn’t want to ask for more than a 5-year extension because a decision on a municipal electric utility is expected in the next few years.

The CAP tax in its first year was $0.0022 per kilowatt hour (kWh) for residential customers, $0.0004 per kWh for commercial customers, and $0.0002 per kWh for industrial customers.  Purchases of electricity from (more expensive) utility-provided wind power are exempt from the CAP tax.

City council was authorized to increase the tax and in 2009 did increase the tax up to the maximum rate which coincides with the current rate listed in the ballot language.  Residential customers pay an average of $21/year, commercial customers pay $94/year and industrial customers pay $9,600/year.  The 2006 ballot text stated that taxes were to be increased up to $1,342,000 annually; city literature states that the tax currently generates $1.8M a year.

Over 4000 homes, 1800 rental units and 100 businesses have benefitted from the CAP programs.  If this tax is renewed, future funding is expected to target energy efficiency improvements for commercial and industrial customers.  The Boulder Chamber of Commerce has expressed opposition to possible mandates on businesses, citing the SmartRegs program for landlords as a bad model, but it welcomes the focus on businesses for future CAP spending.

If the CAP tax is not renewed, most of the programs would expire, but the city would keep 3 initiatives in effect for at least a year paying for them with the January to March 2013 CAP tax revenues. These initiatives include SmartRegs, a Commercial Energy Efficiency Ordinance, and an enhanced program management function for monitoring and improving processes.

Under CAP the city has basically held steady on GHG emissions; it will not reach its goal set back in 2002.  Changes in the accounting of GHG emissions mean that Boulder may start including in its GHG emissions such things as fossil fuel extraction and air travel.  A Community Guide to Climate Action in Boulder (2012) notes that the city is considering setting annual and 5-year targets that are not necessarily tied to emissions, but rather consider, for instance, the number of solar panels installed or number of residents with EcoPasses.

Recommendation:  For

Boulder by itself certainly won’t have much impact on the world’s GHG emissions.  If Boulder were to succeed in lowering its GHG emissions, it could be a model for other US communities though Boulder’s situation may be hard to replicate.  I think this is a noble cause for our dollars, although perhaps a bit pie-in-the-sky.  Your decision on this ballot issue comes down to whether or not you want Boulder to continue making a concerted effort to reduce its GHG emissions and taxing electricity consumers to fund the effort.


Website for the Yes Side
(Yes on CAP Tax Renewal)
https://sites.google.com/site/bouldercap2012

Website for the No Side
No known website -- Info on an opposition website appreciated.


CAP Tax Information on city’s website
http://www.bouldercolorado.gov/index.php?option=com_content&view=article&id=17004&Itemid=5460

Climate Action Plan 2010/2011 Progress Report
http://www.bouldercolorado.gov/files/LEAD/CAPAG/CAP_2010-11_Online_9-26-11.pdf


CITY OF BOULDER BALLOT ISSUE NO. 2A (Approved Ballot Language)
CLIMATE ACTION PLAN TAX EXTENSION

WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING CLIMATE ACTION PLAN EXCISE TAX BE EXTENDED FOR FIVE YEARS FOR THE PURPOSE OF CONTINUING TO PROVIDE INCENTIVES, SERVICES, AND OTHER ASSISTANCE TO BOULDER RESIDENTS AND BUSINESSES TO IMPROVE ENERGY EFFICIENCY, EXPAND THE USE OF RENEWABLE ENERGY, AND TAKE OTHER NECESSARY STEPS TO REDUCE GREENHOUSE GAS EMISSIONS, AT THE CURRENT RATE OF $0.0049 PER KILOWATT HOUR (KWH) FOR RESIDENTIAL CUSTOMERS, $0.0009 PER KWH FOR COMMERCIAL CUSTOMERS, AND $0.0003 PER KWH FOR INDUSTRIAL CUSTOMERS ON ELECTRICITY CONSUMED, FROM ITS CURRENT EXPIRATION OF MARCH 31, 2013, THROUGH MARCH 31, 2018 AS A VOTER APPROVED REVENUE CHANGE?
‐FOR THE MEASURE
‐AGAINST THE MEASURE


See Ordinance No. 7848 to refer 2A to the voters.
http://www.bouldercolorado.gov/files/Elections/2012/7848%20-%20CAP%20Tax.pdf

See Ordinance No. 7483 which referred the original CAP tax to the voters in 2006.
http://www.bouldercolorado.gov/files/Elections/2006/climate_action_plan_ord.pdf

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