Clean Energy Summary of Governor Walker’s 2017-2019 Budget

by jboullion | Feb 9, 2017 | Uncategorized

On Wednesday, February 8th, Wisconsin Governor Scott Walker issued his Executive Budget for 2017 thru 2019.  Below, we list the clean energy related provisions that RENEW has found in the document.  If more items or information is identified, we will add it as we become aware.

Screenshot via https://walker.wi.gov/wiworking

From a process perspective, the Budget will head to the Legislature’s Joint Finance Committee, where hearings will be held throughout the spring.  The full Legislature will vote on the Budget in early summer.

There are three documents where these items are located:

1)  The “Executive Budget” located here.

2)  The “Budget in Brief” located here.
3)  The Budget Bill, Assembly Bill 64 and Senate Bill 30

Please email Tyler if any of these items are of particular importance to you or your business.  We are continuing to gather information about these items and appreciate your input.

Here we go:

Renewable Energy Appropriation for State Agencies

The Governor has proposed segmenting the $5,237,700 annually spent for state agencies to purchase renewable energy.  Currently, the Department of Administration handles these purchases, and the Governor has proposed that the agencies involved should instead have their own budgets to make these purchases.  These agencies include Departments of Corrections, Health Services, Public Instruction, Veterans Affairs, and University of Wisconsin System.

Schools Energy Efficiency

The Governor has proposed to prohibit any new increases in school district revenue limits for energy efficiency and renewable energy projects.  School districts would still have the ability to use referenda for these projects.  Commonly referred to as “Act 32” in the energy circle, this provision allows school districts to spend money above their revenue limits if the funds are spent on qualified energy efficiency and renewable energy improvements that reduce energy and operational expenditures.  

The “Budget in Brief” frames this in the following way: “Mitigate property tax increases by eliminating the energy efficiency exemption in revenue limits on a going-forward basis. Property tax levies associated with the exemption grew 115 percent in last three years and in calendar year 2016 alone, districts obtained authorization to spend $327,052,400 above revenue caps. School districts will continue to have the ability to use referenda for these projects.”

In what may be seen as a trade-off, the Governor has proposed that up to $10 million of Focus on Energy’s annual budget for each year be spent on schools energy efficiency.  The “Budget in Brief” describes this further: “Allocate up to an additional $10,000,000 from Focus on Energy funds annually or up to $20,000,000 over the biennium for elementary, secondary, and postsecondary schools in the Focus on Energy program for energy efficiency projects, and prioritize the funding to public elementary and secondary schools.”

“Intervenor Compensation”

This is a budget for organizations such as RENEW Wisconsin, Citizens Utility Board, and others to utilize and bring expert witnesses and legal support to cases at the Public Service Commission.  Cases may include utility rate cases, the construction of new power plants or transmission lines, and additional proceedings.

The Governor has proposed to allocate an $742,500 annually for both years of this budget.  This line item was cut to from over $1 million annually down to $371,000 per year in the previous state budget.  Adding funds for intervenor compensation is a good thing to ensure complete cases and evidence are presented to the Commission for their decision-making.

Settlement Funds from Volkswagen into Clean Transportation

“Through the class action settlement resulting from Volkswagen, settlement funds received by the state will be redirected to replacing aging, inefficient vehicles with clean-powered vehicles, ensuring additional protections of the state’s air quality.”  The Governor proposes to “allocate $42,000,000 of Volkswagen emissions settlement funds expected to be received by the state in the 2017-19 biennium for the replacement of older vehicles with new, lower emission vehicles. Through consultation with Milwaukee County, the state will provide up to $26,000,000 of the settlement funds to the county to purchase new buses during the 2017-19 biennial budget. This will lower transit system emissions and target a majority of settlement funds toward a region deemed to be in need of air quality improvement. In return, the county will repay the state $1,950,000 per year for a ten-year period. The remaining $16,000,000 available during the 2017-19 biennium will be used to replace state-owned vehicles. “

Adopt State Version of Federal REINS Act

“Adopt state version of federal REINS Act by requiring the Legislature to approve all administrative regulations that have an impact of $10,000,000 or more on regulated individuals and entities. Provide for greater transparency of an administrative rule’s potential impact on businesses, local governmental units, and individuals by requiring, at Joint Committee Review of Administrative Rules’ (JCRAR) request, a preliminary hearing and comment period to allow for stakeholder feedback earlier in the process. In addition, allow an independent economic impact analysis of regulations at the request of Department of Administration or JCRAR. Provide a process for agencies to follow regarding guidance documents to ensure that public comment is considered. Additional modifications to the process include: require Department of Administration approval of economic impact analyses, changes to emergency rule extensions, an expedited process for repealing unauthorized rules, and sunset of rule-making authority for agencies that have not promulgated a rule in ten years or more.”

Reduction of Emergence Assistance Funds Used for Low-Income Weatherization
In the Budget Assembly Bill, we found that the low-income weatherization program will receive less money from the emergency assistance program by $1.4 million compared with the 2016-17 fiscal year. The text reads:

SECTION 903. 49.175 (1) (i) of the statutes is amended to read:
49.175 (1) (i) Emergency assistance. For emergency assistance under s. 49.138 and for transfer to the department of administration for low-income energy or weatherization assistance programs, $7,000,000 in each fiscal year (down from $8,500,000 in 2015-16 and $8,400,000 in fiscal year 2016-17).

Elimination of Inactive Boards, Councils or Commissions 

The Governor recommends eliminating the Bioenergy Council, which last met prior to September 15, 2015. The Bioenergy Council was under the Department of Agriculture, Trade, and Consumer Protection.

Repeal the prevailing wage requirements for state construction projects. 

This is listed under a set of “Government Reforms” in the budget in brief, and called out in the executive summary of the full budget document.

Sunset the Diesel Truck Idling Reduction Grant program on June 30, 2017, instead of

June 30, 2020, for savings of $1,000,000 SEG in fiscal year 2017-18 and $1,077,100 SEG, including 1.0 FTE position, in fiscal year 2018-19 or $2,077,100 SEG and 1.0 FTE position over the biennium.

Potentially related to Agriculture and Dairy Digesters:

Provide $825,000 SEG (segregated revenue) in fiscal year 2017-18 and $825,000 SEG in fiscal year 2018-19 for additional support in order to fully fund demand for cost- sharing nonpoint source abatement projects and other land and water conservation activities performed by counties. Total funding for the program will be set at $3,325,000 SEG, an increase of 24 percent over base level funding. 

Direct the Department of Agriculture, Trade and Consumer Protection, and the Department of Natural Resources to conduct a study on the feasibility of transferring the permitting process for concentrated animal feeding operations from the Department of Natural Resources to the Department of Agriculture, Trade and Consumer Protection. 

Eliminate the stray voltage program administered by the Public Service Commission and the Department of Agriculture, Trade and Consumer Protection, providing annual savings of $305,100 PR (program revenue), a reduction of 1.0 FTE position to the commission and a reduction of 5.0 FTE positions to the department. The sunset of the program also saves rural cooperatives over $25,000 annually through the elimination of fees. No claims have been awarded under the program for many years. 

MGE, Middleton Celebrate Shared Solar Success with Subscribers

by jboullion | Jan 30, 2017 | Uncategorized

Middleton Mayor Kurt Sonnentag

The largest shared solar array serving a Wisconsin
investor-owned utility provided the occasion for a thank-you to subscribing
customers at the Middleton Operations Center January 29th. Notwithstanding
overcast conditions outside, Madison Gas & Electric CEO Gary Wolter and
Middleton Mayor Kurt Sonnentag beamed with 
gratitude as they spoke to the customers who signed up to purchase a
share of the output from the utility’s first grid-connected solar generator.

Madison Gas & Electric CEO Gary Wolter

Visible from U.S. Highway 12 northbound, MGE’s 500 kilowatt
(AC) array consists of 1,728 panels, and has been producing electricity since
early January.  Madison-based H&H
Solar designed and constructed the project, which includes inverters
manufactured in Milwaukee. Also in 2016, H&H Solar designed and built a 97
kilowatt (kW) solar electric system that sits atop the Middleton Police
Station. All told, City of Middleton facilities now host more than 600 kW of
solar generating capacity, the most among Wisconsin municipalities.

Summit Highlights Clean Energy Going Mainstream

by jboullion | Jan 24, 2017 | Uncategorized

Largest Ever Summit Shows Excitement, Bright Future

By Katherine Klausing, Engagement Manager

On Thursday January 19, RENEW Wisconsin hosted its largest ever Renewable Energy Policy Summit, entitled “Clean Energy Goes Mainstream.”

Approximately 300 people and over 50 sponsoring organizations gathered for the sixth annual event in Madison to hear a diverse set of perspectives on the growing clean energy economy, from military leaders and farm cooperatives to utility executives and solar developers.

“This has been a great year for renewable energy in Wisconsin, with the most solar installed ever, increased attention on biogas and a new wind farm under construction. We’re really pleased that the Summit reflects that excitement,” said Executive Director Tyler Huebner.

Barbara Nick of Dairyland Power Cooperative

Keynote speaker Barbara Nick, CEO of Dairyland Power Cooperative, kicked off the speakers, explaining that the cooperative’s recent large investments in wind and solar will allow it to decrease its reliance on coal. “With or without the Clean Power Plan, with or without regulation, we have a strategy that we will diversify because it’s just plain good common business sense,” Nick said.

On the morning panel, Amy Heart, director of public policy at SunRun, led a discussion about the economic and security benefits of mainstream clean energy. Department of Defense Engineer Gregg Herman explained what the US Army Reserve is doing to meet the DoD’s ambitious renewable energy goals, including building a 125 kilowatt solar array in Milwaukee. Larry Ward, executive director of the Michigan Conservative Energy Forum, spoke about his experience working with GOP lawmakers to pass a bill raising the state’s renewable portfolio standard and expanding energy efficiency. The energy independence and job creation benefits that clean energy brings align well with conservative principles, Ward said.

Organic Valley Cooperative members take advantage of solar energy. Photo credit: Organic Valley.

Stanley Minnick, energy services manager for Organic Valley, the nation’s largest organic farm cooperative, highlighted how incorporating renewable energy into family farm practices makes them more financially sustainable. “Having solar on their farms makes it more likely that a son or daughter will be able to take over the farm from their parents,” Minnick said. He pointed out that renewable energy jobs are living-wage jobs that can really make a difference for families. “This industry has changed my life and my family’s lives.” For more information on Organic Valley’s renewable energy efforts, see our blog.

Adam Browning of Vote Solar

Adam Browning, a national leader on solar policy and executive director of Vote Solar, gave the afternoon’s keynote address, following recognition of some of Wisconsin’s best renewable energy installations of 2016. Browning highlighted some of the bright spots in Wisconsin’s solar market, like Dairyland Power’s innovative model that allows its member cooperatives to piggyback on utility-scale solar developments as a way to offer cost-effective shared solar programs to their customers. “I wish we had that in California,” he said.

Browning pointed to state policy as a critical driver for solar growth, in addition to efforts by industry leaders such as Apple, Facebook and Google who have all committed to using 100% renewable energy. These corporate renewable energy policies will produce downstream opportunities and benefits for individual families too: “what’s good for the Google is good for the gander,” he joked.

The afternoon presentations concluded with a panel discussion featuring Laura Caspari, of SoCore Energy, Jeanne Hoffman of the City of Madison, Jeff Ripp of the Wisconsin Public Service Commission, and Teran Smith of EDP Renewables. SoCore Energy is building 14 solar arrays in Wisconsin for Dairyland Power, while EDP Renewables is responsible for the new Quilt Block Wind Farm being built in southwest Wisconsin, the state’s first wind farm development since 2011. Ripp highlighted Wisconsin’s $20 million RFP for new biogas initiatives, while Hoffman pointed to Madison’s recent efforts on solar, as well as a new 100% renewable energy resolution.

“This past year was great for clean energy in Wisconsin, and I’m honored to help RENEW celebrate its 25th Anniversary,” Huebner said. “I’m optimistic about what 2017 holds.”

For more information on the event, we invite you to view press coverage from:

Channel 3000: Renewable Energy Conference Focuses on Working with Agriculture

Wisconsin Public Radio: A Wisconsin Utility Executive Pledges Less Reliance on Coal

WisBusiness: Wisconsin Must Plan for Carbon-Restricted Future, Industry Experts Say

Wisconsin Public Radio: A Conservative Touts Renewable Energy

Midwest Energy News: Adam Browning Q+A – Bright Spots and Opportunities for Solar in Wisconsin

Businesses Lead the Way on Solar at Wisconsin Sustainable Business Conference

by jboullion | Dec 14, 2016 | Uncategorized

By Katherine Klausing, Engagement Manager

Wisconsin’s businesses are leading the way on solar, and they’re encouraging their colleagues do the same. That was the message last week in Onalaska, as RENEW Wisconsin’s Tyler Huebner convened a panel at the Wisconsin Sustainable Business Conference.

RENEW Wisconsin brought together executives from Gundersen Health System of La Crosse, Reynolds Transfer of Madison, and Phillips Medisize of Phillips to talk about how investing in solar energy has helped their companies save money and meet their sustainability goals.

Gundersen Health Systems’ Sparta Clinic Photo credit: Gundersen Health Systems.

Gundersen Health Systems’ Alan Eber explained that his company is able to save significant costs by building its clinics to use about half as much energy as a typical healthcare facility. “We take the architecture guidelines of 2030 and apply them today,” said Eber, explaining how this results in much lower costs over the life of its buildings. “For us, it’s all about reducing waste.” Gundersen has invested in a 100kW solar array on top of its new clinic in Sparta. To meet its full commitment to energy independence, the company will also buy the output from 220kW of Xcel Energy’s shared solar array under development. Gundersen Health Systems has been recognized as RENEW Wisconsin’s Energy-Independence Enterprise of the Year.

Reynolds Transfer and Storage’s solar array. Photo credit: SunPeak.

Ben Reynolds of Madison-based Reynolds Transfer and Storage also shared his positive solar experience with the crowd. Reynolds, a sixth-generation member of the family-owned business, led the procurement and installation of 48kW of solar on the company’s two warehouse facilities in Madison. Reynolds estimates that the solar array will save them about $7,500 every year, not including the money the company has saved by converting some of its power load from gas to electricity and timed its use to capitalize on the solar panels’ production. Read more about Reynolds Transfer and Storage’s solar project here.

Jonathan Roberts of SoCore Energy shows off Dairyland Power Cooperative’s latest solar array, located near New Richmond.  Photo credit: SoCore Energy.

Dan Andersen of Phillips Medisize explained that his company took a different approach. The medical device manufacturer’s leaders looked into installing solar on-site, but decided they liked the ease and simplicity of investing in a shared solar array. So Phillips Medisize will buy a portion of its power every month from two new community solar arrays built in New Richmond and Eau Claire.

The Milwaukee Journal Sentinel’s Tom Content kicked off the session by sharing new national polling showing the vast and diverse support that renewable energy garners nationwide. Polling conducted by Public Opinion Strategies immediately following the November elections found that 76% of Americans support installing more solar energy.

The fact that solar energy is so popular should be of interest to businesses considering solar, pointed out RENEW’s Huebner. “Businesses that invest in solar and renewables are on the correct side of the citizens and therefore customers, suppliers, and employees.”

Statewide Funding for Renewable Energy Incentives Increased to $8.6 million

by jboullion | Dec 1, 2016 | Uncategorized

Today, the Public Service Commission of Wisconsin finalized decisions related to Focus on Energy’s renewable energy program for 2017 and 2018.

Overall Funding: The first item to note is that the total funding for renewable energy incentives is now $8.6 million over the 2017-18 two-year period.  This is up from $7.7 million decided in their previous meeting of October 20th, and reflects an additional $900,000 from unspent funds remaining in the now-terminated Renewable Energy Loan Fund.

Funding by Program:  The Commission decided to fund programs at the following levels, largely agreeing with recommendations RENEW Wisconsin put forth in late October. Business customers will be able to take advantage of Prescriptive Incentives, which offer pre-determined levels of funding for eligible technologies like solar PV and geothermal projects, as well as the Renewable Energy Competitive Incentive Program (RECIP), which accepts competitive proposals and awards grants for larger projects.

Based on RENEW Wisconsin’s understanding of the Commission’s discussion today, we estimate the budgets accordingly.

Note that these figures may change as more information becomes available.

Incentive Level for Solar PV:  The Commission also adjusted the incentive levels and caps on project sizes for solar photovoltaic systems. The commission lowered the incentive from about 16% of the cost of an average project–$600 per kW–to 12% of the project cost, which will adjust yearly with average market prices. At this year’s prices, the incentive would be $450 per kW, according to Commission Chairperson Ellen Nowak. Nowak noted that the solar incentives have been very popular and fully spent down in each year and that reducing the incentive level to match falling market prices would allow more installations to be funded.

Following recommendations from staff and RENEW, the Commission also agreed to raise the maximum eligible project size from 4kW to 8kW for business customers. Residential incentive eligibility will remain capped at 4kW.

“We applaud the Commission’s decision to continue to fund these critical projects,” said Tyler Huebner, Executive Director of RENEW Wisconsin. “These highly successful incentive programs will ensure that renewable energy thrives in Wisconsin, keeping our energy costs low and our energy jobs local.”

In addition, the Commission directed $20 million in funding to expand biogas production on dairy farms. An interagency working group will release a joint RFP for a network of interconnected anaerobic digesters, which will allow manure from dairy farms to be converted into renewable natural gas. The Commission noted the many benefits that anaerobic digesters have to offer in Wisconsin, from improving water quality, to nutrient management and local, renewable energy. RENEW Wisconsin has closely followed and supported statewide initiatives to deploy biogas technologies. For more information and our take on Governor Scott Walker’s recent announcement, visit our blog.

Finally, the Commission outlined new programs for rural customers that will align greater access to broadband with participation in Focus on Energy’s efficiency programs. The Commission announced $16 million in funding for new programs that provide broadband-connected energy efficiency devices like smart thermostats and smart power strips, $4 million for energy efficiency retrofits for broadband providers’ facilities and $6 million in additional programs for agricultural energy management, rural small business support and others.