CRBC opposes HB1255 CO Alternative Energy Park Act

March 17, 2011 The Honorable State Representatives State Capitol Building 200 E. Colfax Ave Denver, Colorado 80203 Re: HB 1255, Colorado Alternative Energy Park Act Dear Representative, The Colorado Republican Business Coalition Opposes HB 1255. The wealth of Colorado (or the United States, or individuals) derives from the goods and services we create. To expand that wealth requires more efficient production of those goods and services. Capital and labor that is diverted to less efficient production reduces that wealth. If a particular product is more efficient to produce, entrepreneurs will invest the capital and labor to produce it. (See "Economics in One Lesson" by Henry Hazlitt for a more complete discussion.) We know that most forms of alternative energy are less efficient because they cost more than traditional forms of energy, and there would be little demand for it without subsidies and incentives. If it needs a subsidy, it probably doesn't deserve it. There can not be a tax incentive to one industry or company that doesn't cost an equivalent amount to a different industry, company, or taxpayers. The Tax Increment Financing incentives envisioned by this bill will be a relative disadvantage to every business that doesn’t receive similar advantages. Further, but for the tax incentives, tax rates overall could be reduced and citizens would be far better at spending their own money to create economic development than government. Spending tax money in hopes of creating more tax revenue is faulty economics. This government distortion of the free market for energy production diverts labor and capital to inefficient projects, and creates an industry that will be forever dependent on government subsidies. If an alternative energy park is developed and cannot run economically, taxpayers will foot the bill. If it creates more environmental damage than it prevents, Colorado suffers the consequences. If it quickly becomes obsolete when more efficient forms of energy are developed, taxpayers have funded that obsolescent technology. If rail transportation falls into disuse, taxpayers have paid for the improvements to rail systems to accommodate the parks. And the bill depends on the wisdom of government officials to determine the economic and environmental viability of the project. These officials have very little risk, because they are using taxpayer money for these experiments. This is a system that is ripe for political favoritism and abuse. We do not oppose alternative energy. However, as liberty minded business owners and free market advocates, we know that entrepreneurs will develop more alternative energy without government assistance when it becomes efficient to do so. Christine Burtt Chairman CO Republican Business Coalition Brian Vande Krol CRBC Issues Committee www.smallbizgop.com