Energy Principles Action 22 is a volunteer-driven membership organization of individuals, cities, communities, counties, associations, businesses and organizations in a 22-county region, banding together for a stronger voice on statewide discussion tables, the State Legislature and in Washington, D.C. Action 22's mission is to give voice to Southern Colorado and serve as a leader for cohesive action to affect change and shape the future of Southern Colorado. Action 22 builds coalitions in support of its efforts and works to shape policies for the future of Southern Colorado. The organization represents a 36,530 sq. mile area (35% of the state) consisting of 850,000 citizens, 19.5% of the state’s population ranging from the San Luis Valley to the Kansas state line. The most effective means of affecting legislation is by grassroots advocacy efforts by our members. It is appropriate and necessary that Action 22 take an active role in influencing the outcome of emerging issues that affect Southern Colorado. In order to balance its grassroots control with the ability to make timely decisions, Action 22 defines specific roles for the Board, the Executive Committee, the Policy Committees and the staff in responding to issues in a manner that is consistent Action 22 policy. With this in mind the issue of energy has been and will continue to be a very important role for Colorado. Global competition today requires that energy issues in Colorado need to be monitored to help give fair and competitive advantages for the state to be a player in the market. Energy in the state is a vast portfolio that ranges from solar, gas, oil, wind, hydro, geo thermal, bio mass and the list goes on including uranium resources critical to supply nuclear power throughout the world. Energy development and maintenance is a complex task and must be ongoing with all communities in the state. These principles are the basis of discussions and are designed to assist policy makers in enhancing Colorado’s energy development. Principle Statements 1. Supports better protection and/or compensation for surface estate owners impacted by energy production. 2. Opposes any additional regulation that would add materially to the cost of oil and gas operations, unless such regulation is based on and can be justified by sound, peer-reviewed science, and includes industry expertise and business realities in the process. 3. Opposes any added regulations that would negatively impact the amount of severance tax revenue which local governments and school districts rely upon by decreasing the quantity of mineral extraction from which the severance tax is derived. 4. Supports the continued funding of the CWCB with severance tax dollars. 5. Opposes any effort to divert severance tax dollars into the state's general fund. 6. Support policies and programs that encourage utilities to develop cost-effective ratio of mixed power portfolios that include renewable energy. 7. Encourages, supports, promotes and commits to the development of energy and renewable energy resources in the Action 22 area balancing the economic well-being of our communities with protecting human health, the environment and wildlife while allowing market forces to determine their deployment. 8. Supports the timely and responsible development of much needed power generating facilities which are designed to help facilitate development of the region’s electric energy resources. 9. Energy Impact Funds o Supports the continued dedication of Federal mineral leasing royalties and State severance taxes to be returned to the source communities from whence the minerals were developed to help mitigate the adverse impacts associated with the development o o o o o o of those minerals and to areas directly impacted by the energy conversion of fossil fuels. Opposes any proposal to thwart the provisions in both Federal and State statute establishing a priority for use of severance tax and Federal and State mineral leasing royalty funds for mineral and energy impact purposes. Objects to taxes which fall primarily on rural Colorado industries when the revenue is earmarked primarily for the benefit of the metropolitan areas and programs. Advocates distribution of a greater share, not less, of these mineral and energy related revenues directly to the local governments that are directly impacted by the development and energy conversion activities involved. Insists that any proposals involving these funds should be developed in full consultation with rural Legislators, community leaders and mineral industry representatives who stand to be adversely affected by such proposals Supports revisiting the employment criteria and updating the job classification to include employees with 400 hours in the industry instead of employment with only one company. Supports a funding mechanism and criteria to distribute funds to Energy Conversion Areas. APPROVED this 23rd day of November, 2009. ______Barbara Montgomery________ Action 22 Chair of the Board Recommended by: Energy Committee