by Sam Dunaiski | Oct 18, 2022 | Advocacy, Biogas, Community, Geothermal, Local Government, Local Initiatives
County Executive Joe Parisi has issued his 2023 budget, which once again prioritizes environmental action and includes initiatives to implement the County’s robust Climate Action Plan. RENEW is asking Dane County advocates to write a letter to Dane County Board Members to support the proposed budget.
A major portion of the budget includes work to achieve its goal of 100% renewable energy for County facilities by the end of 2023. These items will significantly contribute to the ongoing effort to reduce emissions, help the County achieve carbon neutrality in its facilities and fleet by 2030, and cut countywide emissions in half. Included in the proposed budget:
- $4.5 million for the development and installation of carbon capture technologies at the RNG facility at the landfill
- $3 million for feasibility work and acquisition of a site to develop a commercial-scale manure treatment facility to capture manure from up to 30,000 cows in the north Mendota watershed reducing methane emissions comparable to removing 20,000 cars.
- Almost $900,000 to start work on campus-wide geothermal systems for the East District Campus (Medical Examiner and Highway Garage) along with the Badger Prairie campus in Verona.
- Almost $100,000 in additional resources for the Office of Energy & Climate Change and our efforts to accelerate countywide climate action
- $2 million for ongoing “Suck the Muck” efforts to remove phosphorous from our waterways
- $3 million plus new staff positions to continue sediment dredging that improves water flow between our lakes, reducing flooding risks exacerbated by climate change
- $2 million for the Dane County Continuous Cover Program, which funds private landowner efforts to convert marginal cropland to perennial cover, reducing runoff and sequestering carbon
- $10 million for the Dane County Conservation Fund to continue County land acquisitions that help improve water quality and allow opportunities for prairie and wildlife restoration
- $3 million for additional regional bike trails
RENEW Wisconsin is asking Dane County advocates and allies to support Executive Parisi’s budget approval with the County Board. Here’s how you can help:
- Write a letter in support of Executive Parisi’s proposed budget. Your letter can focus on any of the above bullet points and how these initiatives would improve the overall health, economy, and well-being of Dane County. Ask the Board of Supervisors to approve Executive Parisi’s 2023 budget.
- You can find contact information for Dane County Supervisors HERE.
Thank you for weighing in on this important issue!
by Sam Dunaiski | Aug 31, 2022 | Advocacy, Biogas, Electrification, Energy Storage, Geothermal, Hydroelectric, Renewables, Solar, Wind
The world of clean energy received a monumental win earlier this month with the passage of the Inflation Reduction Act. The Inflation Reduction Act (IRA) will be the backbone of the United States’ effort to decarbonize our energy sector, spur clean energy implementation across all demographics, and significantly grow the clean energy economy.
Here is a breakdown of the bill’s elements:
Renewable Energy Generation
Investment Tax Credits
- Residential Solar: 30% Investment Tax Credit (ITC) on project costs until the end of 2032, with a step-down of 26% in 2033 and 22% in 2034. Credits are retroactive for residential installations from 1/1/2022, meaning that homeowners who installed a solar array at any point in 2022 will qualify for the 30% ITC.
- Commercial Solar: 30% ITC on project costs until the end of 2024 (ITC on commercial solar is also retroactive to 1/1/2022). Beginning in 2025, the ITC will be replaced by technology-neutral credits, with the following rules in place:
- 6% base credit; bonus credits up to 30% of costs if the project meets union labor, prevailing wage, and apprenticeship requirements. These requirements do not apply to projects less than 1 megawatt (MW) in size.
- 10% bonus credits if the project meets domestic content requirements.
- 10% bonus credits if the project is sited in an “energy community” – a brownfield site or a community with a recent coal plant closure.
- 10% bonus credits if the project is sited in a low-income community. This only applies to projects that are 5 MW and less.
- 20% bonus credits if the project qualifies as directly serving a low-income residential facility or another economic benefit system.
- Interconnection costs -for projects less than 5 MW- with the utility can be included in the credits.
Production Tax Credits
While the Investment Tax Credit applies to the upfront purchase of parts, materials, and labor, the Production Tax Credit (PTC) functions differently. This credit is a direct payment and applies to the production or output of the generation source. This generation source can be solar, wind, geothermal, biomass, and hydropower, to name a few. These credits are also retroactive from 1/1/2022.
Here is how the PTC breaks down:
- Direct pay value: $0.026 per kilowatt-hour (kWh) starting in 2022; rate rises with inflation.
- Bonus credit of 1.5 cents/kWh if union labor, prevailing wage, and apprenticeship requirements are met.
- 10% bonus credits if domestic content requirements are met.
- 10% bonus credits if the project is sited in an “energy community” – a brownfield site or a community with a recent coal plant closure.
- The PTC is available for nonprofits, state and local governments, rural electric cooperatives, tribal governments, and/or other tax-exempt entities. These organizations previously did not qualify for the ITC.
- PTC will also apply to utility-scale projects.
- Credits are available for ten years after the project is placed into service.
- Direct pay/PTC is not available for residential solar installations.
- PTC is transferable after 2022; however not for individual taxpayers.
- Commercial solar projects can choose either the ITC or the PTC.
Electric Vehicles
New EVs: (Effective 8/16/2022)
- $7,500 tax credit to be divided into two separate credits:
- $3,750 credit for electric vehicles with batteries produced in North America.
- $3,750 credit for electric vehicles using a certain percentage of critical battery minerals extracted or processed in the U.S.
- Vehicles meeting only one requirement will only be eligible for a $3,750 credit.
- Vehicles must cost less than:
- Vans < $80,000
- Pickups and SUVs < $80,000
- Cars < $55,000
- Income requirements:
- Joint tax return < $300,000
- Head of household < $225,000
- Single-payer < $150,000
- Credit will eliminate the limit of 200,000 vehicles per manufacturer.
Commercial Clean Vehicles: (Effective 01/01/23)
- Up to $40,000 tax credit for commercial electric vehicles.
Used EVs: (Effective 01/01/2023)
- $4,000 tax credit or 30% of the vehicle’s sale price.
- The vehicle’s model year must be at least two years older than the current “new” model year.
- Vehicle cost must be less than $25,000.
- Income requirements:
- Joint tax return <$150,000
- Head of household <$112,300
- Single-payer <$75,000
- Used EV tax credits will continue until the end of 2032.
EV-Charging:
- Credits for EV-charging equipment and infrastructure will increase up to $100,000.
- Equipment must be located in a qualified census tract, with similar bonus credits if prevailing wage and apprenticeship requirements are met.
- A direct pay or PTC option is available for charging with transferrable credits.
- Credits will be available until 2032.
Battery Storage
Effective as of 1/1/2023
- 30% ITC for the cost of installation; credits last until 2033. To qualify, batteries must be larger than 3kWh for residential installations and larger than 5kWh for commercial installations.
- Commercial battery credits have similar sliding scales as other ITC items: baseline of 6% with increasing credits for prevailing wage, labor, location, etc.
- Battery storage systems will no longer need to be coupled with solar generation systems to qualify for tax credits.
Energy Efficiency and Electrification
Effective as of 1/1/2023
Federal Tax Credit
- Heat Pumps: 30% of costs, up to $2,000
- Electric Upgrades: 50% of costs, up to $1,200/year
Upfront Discounts
- Incentive levels and eligibility are determined by income
- Heat Pumps: rebates for up to $8,000
- Electric Upgrades: up to $4,000 for breaker boxes/electric service; $2,500 for wiring, and $1,600 for insulation/venting/sealing
Manufacturing and Production
Effective as of 1/1/2023
- $30 billion in PTC to manufacture solar panels, trackers, inverters, wind turbines, batteries, and other critical minerals.
- Solar PV cells – $0.04/watt
- Solar-grade polysilicon – $3/kg
- Solar modules – $0.07/watt
- Wind components – 10% of the sales price
- Battery cells – $35/kWh
- Critical minerals – 10% of the cost of production
- $10 billion in ITC funding for building new facilities to manufacture clean energy products; $4 billion of these funds must be allocated to “energy communities.”
- $500M for manufacturing heat pumps and processing of critical minerals necessary for heat pump production.
Other Items
- Carbon Sequestration Credits (ITC or PTC) for facilities that begin construction before 2033 and provide direct air capture of carbon dioxide. Credits will be issued by a metric ton of carbon capture.
- Clean Hydrogen – credits for production -by unit- of green and blue hydrogen that can be used to offset traditionally carbon-based fuels.
- Sustainable Aviation Fuel – credits for SAF produced by unit (gallon) with increasing credits based on a percentage of greenhouse gas reduction.
- Biodiesel/Alternative Fuels – production credits for fuels produced based on life-cycle emission levels.
- Methane Fees – fees imposed by EPA for facilities that emit more than 25,000 metric tons of CO2 annually.
Additional Provisions
- $500 million for the Defense Production Act, some of which could be used for solar manufacturing.
- Greenhouse Gas Reduction Fund totaling $29 billion overseen by the Environmental Protection Agency.
- Climate Pollution Reduction Grants to state and local governments totaling $5 billion.
- Environmental and Climate Justice Block Grants: $3 billion for disadvantaged communities.
- $2 billion in loan authority for new transmission construction in designated national interest corridors.
- $760 million for the Department of Energy to issue grants to state, local or tribal entities to facilitate siting of high-voltage interstate transmission.
- Additional $1 billion for rural renewable energy electrification loans and expansion of the program to include storage.
- Additional $1 billion for Rural Energy for America Program (REAP), with total grants limited to 50% of the total cost of an eligible project.
- $9.6 billion for loans and financing for rural co-ops to purchase renewable energy, generation, zero-emission systems, and related transmission, limited to 25% of total cost.
- Incentives for build-out of electric vehicle charging networks.
- Extension, expansion, and changes to electric vehicle tax credits, including a new credit for purchasing used EVs.
Conclusion
Much of the implementation and administration of the Inflation Reduction Act is still not understood. This document is meant to summarize the items in the bill that RENEW Wisconsin considers particularly important to the clean energy transition in our state.
For additional information, please utilize the following resources:
Please contact Sam Dunaiski (sam@renewwisconsin.org) with questions.
by RENEW Wisconsin | Aug 15, 2022 | Advocacy, Community, Electrification, Policy, Press Release, Renewables
After decades of inaction punctuated by occasional half-measures, Congress has passed monumental legislation committing the nation to pursue a clean energy transformation that will benefit all sectors of American society.
The enactment of the Inflation Reduction Act, which cleared the House of Representatives today, will signal to the rest of the world that the United States is “all in” on decarbonizing the domestic economy while greatly expanding investment and career opportunities in the clean energy arena.
Specifically, this legislation represents a 10-year commitment to scaling up the deployment of clean energy technologies, electric vehicles, and electrified heating and cooling systems produced and delivered by U.S. companies.
With its emphasis on strengthening America’s productive capacity and workforce to deliver clean energy to our fellow citizens, this legislation is genuinely an industrial-strength response to the climate emergency enveloping our planet.
We at RENEW look forward to working collaboratively with federal and state agencies, businesses, farmers, local governments, and schools to help deliver the benefits of the clean energy transformation to every Wisconsinite.
by Andrew Kell | Jul 21, 2022 | Action Alert, Advocacy, Legislative Watchlist, PSC Priorities, Solar
RENEW has assembled a team of experts to develop a comprehensive framework of Distributed Generation (DG) buyback rates as a counter-proposal to utility applications. DG buyback rates determine payments for ALL non-utility-owned electricity generation at the distribution level. For more information, please read this short RENEW parallel generation blog.
The Public Service Commission (PSC) must hear from clean energy advocates in each case. These PSC decisions will impact businesses, local governments, schools, hospitals, organizations, and individuals. We thank all of the clean energy supporters that submitted comments.
Comment periods are now closed for all cases.
WE ENERGIES (6630-TE-107)
WPS (6690-TE-114)
MGE (3270-TE-114)
XCEL Energy (4420-TE-109)
Alliant Energy (6680-TE-107)
RENEW appreciates the supporting comments that were submitted in favor of RENEW’s comprehensive framework for buyback rates. We believe this framework values DG, accelerates carbon emission reductions and provides a path for Wisconsinites to participate in building a clean energy future. Once again, more detail is provided in RENEW’s blog, Buyback Rates and the Business Case for Distributed Generation in Wisconsin.
For additional information on this topic, please contact Andrew Kell, Policy Analyst at RENEW.
Thank you for being a champion of clean energy in Wisconsin!
by Michael Vickerman | Jun 3, 2022 | Advocacy, PSC Priorities, Public Service Commission, Renewables, Solar
On May 26th two petitions were filed at the Public Service Commission (PSC) seeking rulings to clarify the long-simmering issue of third party-financed renewable energy generation serving individual customers behind their meters.
In one of the petitions (Docket No. 9300-DR-106), Vote Solar, a national nonprofit advocacy organization with 500 members residing in Wisconsin, asks the agency to affirm the legality of a tax-financed solar system installed at the residence of one of its Wisconsin members. In the other petition (Docket No. 9300-DR-105), Custer-based Midwest Renewable Energy Association seeks a similar affirmation, based on relevant case law precedents, enabling customers to host third party-financed electric generation systems on their premises without fear of being designated a public utility. You can read the petitions online at the above-referenced docket numbers on the PSC’s website.
Although the two petitions take different approaches to the legal question at issue, a positive ruling from the PSC on either or both of these filings would achieve the desired result: the ability of individual customers to access electricity generated on their premises from installations owned by third parties. For that reason, RENEW is urging stakeholders—solar contractors, climate and energy justice advocacy organizations, local governments, and legislators–to signal their support for both petitions through statements of support filed at the PSC.
When the PSC receives a Declaratory Ruling petition, it is obligated to open a 20-day initial comment window prior to deciding whether or not to accept that petition. Accepting the petition is a prerequisite for rendering a decision on the legal merits of the case.
RENEW is asking stakeholders to submit statements in both proceedings urging the PSC to accept the petitions and convene a proceeding to affirm third-party financing on its merits, emphasizing the following themes:
- Businesses need clarity on this legal question before they will commit to providing renewable energy to customers with equipment they would own. Though customer demand for solar PV is growing, the ongoing legal ambiguity acts as a powerful disincentive to businesses contemplating investments in equipment and staff to serve that part of the market. The risk of fighting expensive legal battles with utilities also diminishes business appetite for doing business in Wisconsin.
- Third-party financing eliminates the upfront financial commitment that often stops low and middle-income households from pursuing solar. As a market-building tool, third-party financing can expand the residential customer base more effectively than either rebates or tax credits. Third-party financing is a linchpin mechanism for securing a just energy transition that engages customers of all income levels.
- The lack of legal clarity on this issue is an unjustifiable restriction on property owners’ ability to supply themselves with clean energy produced on their premises. The PSC has had several opportunities in recent years to settle this issue but declined to do so. It is past time for the PSC to clear a path for the homeowners, businesses, and nonprofits desiring to access onsite solar power owned by a third party.
Currently, Wisconsin case law allows for third-party financing of energy projects, but some electric utilities have denied interconnection to installations that would have been owned by third parties. They contend that such installations should be regulated as public utilities, even though they are designed to supply energy to only one entity: the host customer. In our view, a business that installs and operates energy equipment on a customer’s property for that customer’s exclusive use should not be regulated as a public utility.
PSC affirmation for third-party financing is essential to spreading the benefits of clean energy to all Wisconsin utility customers.
The deadline for submitting comments is June 14th.
If you have questions or represent a business or organization that would like to engage on this issue, please contact Michael Vickerman at mvickerman@renewwisconsin.org.
by Jodi Jean Amble | May 17, 2022 | Advocacy, Community, Electric Vehicles, Jobs, Local Initiatives, Renewables, Solar, Wind
RENEW Wisconsin has launched two state-wide communications campaigns to promote the benefits of clean energy investments in Wisconsin. The two campaigns, “Clean Energy Works for Wisconsin” and “Clean Energy is Made in Wisconsin,” include print and digital ads and shareable communications assets for partners and clean energy advocates.
Wisconsin’s clean energy workforce is 70,000 strong, with good-paying local jobs like installing solar and electric vehicle charging stations, manufacturing energy storage systems, servicing wind turbines, and retrofitting buildings. Clean energy job growth is gaining momentum from state and federal clean energy and electric transportation commitments, federal funds to support these goals, and an increased interest in clean energy investments from the public sector. The “Clean Energy Works for Wisconsin” campaign highlights the job potential of continued investment in electric transportation and Wisconsin clean energy.
“Over the next five years, Wisconsin can expect to receive $79 million in federal funds from the bipartisan infrastructure law,” said Francisco Sayu, Emerging Technologies Director at RENEW Wisconsin. “Wisconsin will also have the opportunity to apply for $2.5 billion in competitive grant funding dedicated to electric vehicle corridors and community charging. Building a network of electric vehicle charging stations will reduce emissions, improve air quality, and create thousands of good-paying jobs and is a tremendous opportunity for Wisconsin residents.”
In 2019, Governor Evers set a goal that all electricity consumed in the state will be 100% carbon-free by 2050, and in 2022 introduced Wisconsin’s first-ever Clean Energy Plan. Currently, renewable energy only accounts for 13% of all electricity sold in Wisconsin. According to the U.S. Energy Information Administration, Wisconsin consumes almost six times as much energy as it produces and spends billions on coal, oil, and natural gas every year. The “Clean Energy is Made in Wisconsin” campaign presents a vision of keeping more energy dollars in-state by investing in homegrown renewable energy.
“State and federal investments are moving us toward our clean energy goals, but we need to maximize the benefits of this energy transition for Wisconsin residents,” said Heather Allen, Executive Director at RENEW Wisconsin. “We will need an ‘all of the above’ and ‘all hands on deck’ approach to shape our clean energy future. This means smart investments in homegrown renewable energy and clean transportation.”
Print and digital ads are already circulating in media outlets across the state. To learn more and help amplify Wisconsin’s clean energy opportunities, please visit the “Clean Energy Works for Wisconsin” and “Clean Energy is Made in Wisconsin” landing pages.
