EcoWatch

Utah High Schoolers Convinced State Lawmakers to Admit Climate Change Is Real

Lorraine Chow       May 10, 2018

Panoramic view of Logan, Utah. Michael Gordon / CC BY 3.0

Utah’s state lawmakers aren’t exactly friendly to climate change legislation. Their Republican governor said in 2015 that man-made climate change is “a little debatable.” In 2010, the state legislature overwhelmingly passed a resolution that implied global warming is a conspiracy and urged the U.S. Environmental Protection Agency to stop all carbon dioxide reduction policies and programs.

But thanks to a group of fearless high schoolers, Gov. Gary Herbert reversed the 2010 measure this past March, with the support of 75 percent of Republican legislators.

The resolution, which Herbert signed on March 20, “encourages the responsible stewardship of natural resources and reduction of emissions through incentives and support of the growth in technologies and services that will enlarge the economy.”

This valiant, two-year effort was detailed in a High Country News op-ed this week by Jack Greene, a retired high school teacher who works with Utah students on environmental issues.

According to Greene, a group of students at Logan High School were shocked after learning about the 2010 resolution and sprung to action. He described how the students have already witnessed Utah’s longer and more intense fire seasons, a dwindling snowpack and increasing water scarcity.

“My generation and generations to come will inherit the many threats that climate change poses,” student Piper Chirstian told Greene.

They eventually drafted their own bill and gathered support from grassroots groups, business coalitions and key lawmakers.

In 2017, they enlisted Republican legislator Rep. Becky Edwards to sponsor the resolution, “Economic and Environmental Stewardship.”

Although this attempt failed, the students did not give up, and “partnered with a coalition of advocacy organizations, whose volunteers met with representatives from nearly every Utah political district,” Greene reported.

The bill’s supporters pled to legislators to consider the effects of climate change on the state’s future.

“We, as youth leaders of Utah, have assembled with you, our state leaders, to address what we consider to be the paramount issue of our generation—that of a changing climate,” one student said.

During the 2018 legislative general session, after impassioned testimony from the students, the bill gained traction. It made it out of committee by an 8-2 vote, Green wrote, “then, at last, came success as the House passed the resolution 51-21 and the Senate 23-3.”

Those opposed to the bill included Rep. Mike Noel. As quoted by The Salt Lake Tribute, Noel told the students: “This whole issue of climate change has been used by organizations to fool people.”

The Utah Legislature, however, was no fool.

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EcoWatch

Costa Rica President Announces ‘Titanic and Beautiful Task’ of Abolishing Fossil Fuels

Lorraine Chow        May 10, 2018

Puntarenas, Costa Rica. kansasphoto/ Flickr / CC BY 2.0

Carlos Alvarado, the new president of Costa Rica, announced the country’s “titanic and beautiful task of abolishing the use of fossil fuels in our economy to make way for the use of clean and renewable energies.”

He made the remarks at his inauguration speech Wednesday in front of a crowd of thousands, the Independent reported.

The 38-year-old former journalist also wants the country to be a global example in decarbonization.

“Decarbonization is the great task of our generation, and Costa Rica must be among the first countries in the world to achieve it, if not the first,” he said.

His goal is for Costa Rica to lead the Paris agreement on climate change and be a “world decarbonization laboratory” before the United Nations’ climate talks in 2020 (COP 26).

The Central American nation already derives most of its electricity without using fossil fuels. Last year, the country of 4.8 million people ran for 300 consecutive days on its renewable energy mix of hydropower, wind and geothermal. That impressive feat bested its 2015 record of 299 days of 100 percent renewable production. It also went 271 days using only renewable energy production in 2016.

Despite a 98 percent renewable power grid, Costa Rica has a gasoline-dependent transportation sector, with roughly half of its emissions coming from transport.

Still, the government has been working hard to green its fleet. Former president Luis Guillermo Solís signed a law that eliminates sales, customs and circulation taxes for electric vehicles and allows them to use municipal parking facilities free of charge.

Alvarado, who arrived to his inauguration ceremony at the Plaza de la Democracy on a hydrogen bus, campaigned on modernizing and electrifying older modes of transport, promoting research and development in hydrogen and biofuels, and banning oil and gas exploration in the country.

In a speech last month, he announced intentions to ban fossil fuels for transportation by 2021, the year Costa Rica reaches 200 years of independence.

Energy experts, however, cast doubt on the plan, as Reuters reported. They warn that the plan to eliminate fossil fuels in a handful of years is unrealistic.

Oscar Echeverría, president of the Vehicle and Machinery Importers Association, said the switch to clean transport cannot be rushed because the market is so far undeveloped.

“If there’s no previous infrastructure, competence, affordable prices and waste management we’d be leading this process to failure. We need to be careful,” Echeverría explained to the news service.

But economist Mónica Araya, a Costa Rican sustainability expert and director of Costa Rica Limpia, praised the government’s focus on weaning off polluting energy sources.

“Getting rid of fossil fuels is a big idea coming from a small country. This is an idea that’s starting to gain international support with the rise of new technologies,” she told Reuters. “Tackling resistance to change is one of the most important tasks we have right now.”

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The Motley Fool

The Best Renewable Energy Stock You’ve Never Heard Of (And It Pays a 3.3% Dividend)

This utility is retiring coal plants ahead of schedule and investing billions in renewables, which could supply 45% of its power by 2027.

Maxx Chatsko       May 10, 2018

Things are moving fast in renewable energy. Really fast. Consider that in 2008 wind farms supplied just 1.5% of all electricity in the United States. But by 2019 wind power is expected to contribute 6.9% of American electricity and overtake hydropower as the top renewable energy source.

The rise of wind power wouldn’t have been possible without two companies in particular, which combine to own 20.7 gigawatts of wind capacity, or about 24% of the country’s total. Investors wouldn’t be surprised to learn that clean energy provider NextEra Energy is one of the renewable energy stocks most important to American wind power. However, the relatively unheard of natural gas and electric utility Xcel Energy (NASDAQ:XEL) doesn’t seem to garner nearly the same level of attention. Overlooking it could be a mistake.

With 10-year total returns of 226% and plans to grow its dividend and EPS at annual clips of 5% to 7% — all while investing billions in new wind and solar capacity — it could be the best renewable energy stock you’ve never heard of.

IMAGE SOURCE: GETTY IMAGES.

By the numbers

One look at Xcel Energy’s geographic footprint shows why it’s a leading player in wind power. All of its operations are located in the American wind corridor from the Dakotas to West Texas. The region is home to the majority of the nation’s wind capacity, including all of the company’s 6.7 GW.

That will make it a lot easier to reach the long-term goals to shift its generation mix away from fossil fuels and toward renewable energy. Consider how the company’s generation mix has changed and is expected to change over time:

SOURCE: COMPANY PRESENTATION.

Early retirements of coal-fired power plants and pouring billions into renewable energy have reduced Xcel’s carbon emissions 35% from 2005 to 2017. Using 2005 as a baseline, Xcel Energy is targeting 50% reductions in carbon emissions by 2022 and greater than 60% by 2027. The next phase will be driven by $4.25 billion of investment into renewables between this year and 2022. Most of it will fund over 3 GW of new wholly owned wind capacity, boosting the company’s total installed capacity 46%.

It’s all part of the “steel for fuel” strategy. The idea is simple: Xcel Energy will replace perpetual fuel expenses from traditional power sources, such as coal, with “steel in the ground” for wind turbines, which don’t require fuel inputs once installed. The company’s advantageous position in the American wind corridor and the installation of highly efficient turbines have already proven the strategy. Fuel expense fell from 44% of electric revenue in 2013 to less than 39% in 2017. It was a win-win for shareholders and the company’s electric utility customers: average monthly bills dropped from $83.52 to $81 in that span.

IMAGE SOURCE: GETTY IMAGES.

When combined with rate increases from state regulators, lower fuel expenses helped to boost Xcel Energy’s net income 17% from 2013 to 2017. That’s despite revenue growth of just 4.5% in the period. In fact, renewable energy investments have allowed the company to grow EPS at a compound annual growth rate of 5.9% from 2005 to 2017. The dividend has grown 6.3% annually from 2013 to 2018.

That track record should give investors confidence that the company can deliver on its goals of growing EPS 5% to 6% per year and the dividend 5% to 7% per year. And in case investors aren’t convinced, fuel expenses are projected to fall to just 28% of electric revenue by 2027, freeing even more cash flow for reinvestment into the business or redistribution to shareholders.

Similarly, Xcel Energy’s renewable energy leadership should provide confidence in its ability to deliver on the next phase of the growth plan, from 2022 onward, which includes a stronger focus on solar power and energy storage. Right now, however, the focus is on the nearer term.

The main focus is on an upcoming decision from state regulators in Colorado on the company’s proposal to shutter 660 MW of coal and replace it with 1 GW of new wind, 700 MW of solar, and another 700 MW of natural gas or energy storage. If given the green light in summer 2018, then Xcel Energy will have no remaining question marks surrounding its current investment plan that runs through 2022. The stock could respond well to the added certainty.

IMAGE SOURCE: GETTY IMAGES.

Is this renewable energy stock a buy?

Xcel Energy has largely flown under the radar in discussions of renewable energy stocks, but that’s no fault of the company. The predominantly electric utility is a shining example of how companies can lead the United States to a clean energy future — and proving that it can be a profitable endeavor. A healthy 3.3% dividend (and growing), falling operating expenses, and a long-term history of beating the total returns of the S&P 500 show that this renewable energy stock is worth a closer look at the very least — and maybe even a spot in your portfolio.

Maxx Chatsko has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.