Funding Hiatus Darkens Outlook for In-State Renewables

Immediate release
July 5, 2011

More information
Michael Vickerman
Executive Director
608.255.4044
mvickerman@renewwisconsin.org

Funding Hiatus Darkens Outlook for In-State Renewables

For the first time in its 11-year history, Focus on Energy is no longer accepting applications from Wisconsin businesses and nonprofit entities seeking to install renewable energy systems. This new policy took effect July 1.

According to Focus on Energy officials, this suspension of financial incentives is necessary to balance demand for renewable energy systems with available funds. In 2009, Focus on Energy allocated approximately $10 million to support customer-sited renewable energy systems. More than half of that allocation went to businesses, farmers, local governments, schools, and nonprofit organizations throughout the state.

“We recognize that Focus on Energy officials have a responsibility to ensure that outflows don’t exceed revenues. However, this suspension could not have occurred at a worse time for Wisconsin’s renewable energy contractors,” said Michael Vickerman, executive director of RENEW Wisconsin.

“Unfortunately, this move coincides with Milwaukee-based We Energies’ decision to walk away from an agreement with RENEW Wisconsin to commit $60 million over a 10-year period to develop renewable energy within its territory,” Vickerman said. ‘We Energies disclosed its unilateral action in May, barely more than halfway into honoring its commitment.”

“Given the adverse environment for renewable energy right now in Wisconsin, we hope that the interruption amounts to nothing more than a brief timeout,” said Vickerman.

“Unless funding is restored quickly, 2012 will turn out to be a very lean year for contractors and installers,” Vickerman warned.

As of this moment, the renewable energy marketplace is bristling with new installations. Installations to be completed this summer with incentives from Focus on Energy include:
• Two small wind turbines serving a Monroe County cranberry grower;
• A solar hot water system serving a new apartment building next to the Hilldale shopping complex in Madison;
• Side-by-side solar hot water and electric installations atop a new classroom building at the UW-Oshkosh;
• An engine generator fed with biogas derived from the City of Appleton’s wastewater treatment plant.

However, without a fresh supply of Focus-funded projects, Wisconsin’s renewable energy development pipeline will slow to a trickle, forcing contractors and installers to either seek work in other states or lay off employees.

Wisconsin has more than 2,500 customer-sited renewable energy installations, the vast majority of which received either financial incentives or facilitation services from Focus on Energy. In total, these installations have a generating capacity of about 20 megawatts.

END

Funding Hiatus Darkens Outlook for In-State Renewables

Immediate release
July 5, 2011

More information
Michael Vickerman
Executive Director
608.255.4044
mvickerman@renewwisconsin.org

Funding Hiatus Darkens Outlook for In-State Renewables

For the first time in its 11-year history, Focus on Energy is no longer accepting applications from Wisconsin businesses and nonprofit entities seeking to install renewable energy systems. This new policy took effect July 1.

According to Focus on Energy officials, this suspension of financial incentives is necessary to balance demand for renewable energy systems with available funds. In 2009, Focus on Energy allocated approximately $10 million to support customer-sited renewable energy systems. More than half of that allocation went to businesses, farmers, local governments, schools, and nonprofit organizations throughout the state.

“We recognize that Focus on Energy officials have a responsibility to ensure that outflows don’t exceed revenues. However, this suspension could not have occurred at a worse time for Wisconsin’s renewable energy contractors,” said Michael Vickerman, executive director of RENEW Wisconsin.

“Unfortunately, this move coincides with Milwaukee-based We Energies’ decision to walk away from an agreement with RENEW Wisconsin to commit $60 million over a 10-year period to develop renewable energy within its territory,” Vickerman said. ‘We Energies disclosed its unilateral action in May, barely more than halfway into honoring its commitment.”

“Given the adverse environment for renewable energy right now in Wisconsin, we hope that the interruption amounts to nothing more than a brief timeout,” said Vickerman.

“Unless funding is restored quickly, 2012 will turn out to be a very lean year for contractors and installers,” Vickerman warned.

As of this moment, the renewable energy marketplace is bristling with new installations. Installations to be completed this summer with incentives from Focus on Energy include:
• Two small wind turbines serving a Monroe County cranberry grower;
• A solar hot water system serving a new apartment building next to the Hilldale shopping complex in Madison;
• Side-by-side solar hot water and electric installations atop a new classroom building at the UW-Oshkosh;
• An engine generator fed with biogas derived from the City of Appleton’s wastewater treatment plant.

However, without a fresh supply of Focus-funded projects, Wisconsin’s renewable energy development pipeline will slow to a trickle, forcing contractors and installers to either seek work in other states or lay off employees.

Wisconsin has more than 2,500 customer-sited renewable energy installations, the vast majority of which received either financial incentives or facilitation services from Focus on Energy. In total, these installations have a generating capacity of about 20 megawatts.

END

Legislators are exporting wind energy jobs and torpedoing all renewables

From a commentary by Jeff Anthony, American Wind Energy Association, on BizTimes.com:

The Wisconsin Assembly recently passed a bill that would enable hydroelectric power from Manitoba, Canada, to be shipped to Wisconsin to meet the state’s 2006 renewable energy law requiring 10 percent of the state’s electricity to come from renewable energy by the year 2015.

If enacted into law, the effect of the Manitoba Hydro Bill will be to ship jobs to Canada and reduce Wisconsin’s ability to meet its clean energy requirement by building more homegrown Wisconsin energy projects.

One of the bill’s sponsors, State Sen. Frank Lasee (R-De Pere), was quoted saying, “This new law will keep electric bills from going up by making it more affordable for utilities to meet green energy mandates.”

Unfortunately, he was mistaken in assuming that other forms of “green energy” will raise electricity rates in the state. If he had gotten his facts straight, he would have found that wind energy costs are at near-record lows, and many utilities in the U.S. are reaping the benefits of lower electricity rates as wind energy expands on their systems. But the facts about wind energy costs, like many other facts, apparently weren’t relevant in the rush to pass this ill-conceived bill.

What Sen. Lasee failed to mention is that his bill will also have a significant impact on Wisconsin by sending good-paying jobs that would otherwise have been created in Wisconsin – to Canada instead.

Sen. Lasee and the other state legislators who voted for the bill would have the state import electricity from Canadian energy projects that use Canadian workers. Today, Wisconsin supports 2,000-3,000 workers in the wind energy industry alone, and the Manitoba Hydro Bill now threatens many of those jobs in Wisconsin.

This is just the latest example of legislative activities that are exporting good-paying, clean energy jobs out of Wisconsin. Why?

At the beginning of the year, another onerous bill was proposed to impose extreme requirements on where Wisconsin wind projects can be located. A few weeks, later a joint committee of the legislature voted to suspend Wind Siting Rules that had been developed through a collaborative, open, and fair process. This rule was suspended by the joint legislative committee on the very day that these far better new rules would have taken effect.

Combined, these actions have jeopardized approximately 700 megawatts of wind projects that were proposed in the state, resulting in the potential loss of $1.8 billion investments and 2 million construction job-hours. And guess what – those 2 million job-hours will not show up in Wisconsin, and will likely move to neighboring states.

So what will be the next step in the “Wisconsin Jobs Export Agenda”?

Well, another piece of anti-clean energy job legislation has emerged, Assembly Bill 146, which would significantly reduce the growth of renewable energy in the state. The Wisconsin clean energy law was originally created to incentivize new renewable energy development and increase fuel diversity. AB 146 would effectively remove that incentive.

Merrill dairy farmer studies feasibility of wind energy site

From an article by in the Karina Gonzalez:

MERRILL — A local dairy farmer might soon take advantage of a windy hill on his property to generate renewable energy.

Hans Breitenmoser Jr. has a meteorological tower on his southwest Merrill property that measures wind capacity. In late July 2010, Madison’s Seventh Generation Energy Systems installed the tower to begin a one-year study that would look into the feasibility of using the windy hill to power the farm.

“I’ve lived here all of my life and it’s always been windy,” Breitenmoser Jr. said. “And I’ve always had an interest in green energy.”

Breitenmoser said he expects the study will help him determine what kind of wind energy equipment is the most suitable to offset traditional energy costs at his farm.

Ry Thompson, systems division manager for Seventh Generation, said the Northwoods is generally not a great area for wind turbines because of the vast number of trees that block and slow breezes. However, because Breitenmoser’s property is elevated, it appears to be a good site for generating power.

Seventh Generation will have a report ready by late summer that will include a cost analysis and wind estimates, Thompson said.

EcoFair360 highlights eco-friendly practices and technologies

From an article by Darryl Enriquez on GazetteXtra.com:

ELKHORN — Electric vehicles, wind turbines, local food preparation and eco-friendly cleaning products will be displayed at the second annual EcoFair360.

EcoFair360 will have more than 200 exhibits, presentations and demonstrations that touch a variety of environmental interests and green and eco-friendly technologies.

The fair will be Friday, July 8, through Sunday, July 10, at the Walworth County Fairgrounds.

Founders of the fair, Fritz Kreiss and Catherine McQueen, pursue sustainable lifestyles and communities. The couple are planning The Green Leaf Inn, a low-energy hotel that will house EcoVision Sustainable Learning Center south of Delavan.

Here are five things to know about the fair:

1. Local food. The virtues of buying and cooking locally produced food will be explored Sunday, July 10, by Chef Rick Starr of Kirsch’s Restaurant in Williams Bay. . . .

2. Kids Zone. The Kids Zone will provide workshops for kids of all ages. . . .

3. E-85 benefits. . . .

4. Presentations [on renewable energy installations and energy efficiency]. . . .

5. State issues. State Sen. Neal Kedzie, R-Elkhorn, chairman of the Wisconsin Natural Resources and Environment Committee, will speak at 4 p.m. Friday, July 8, about legislative issues related to the environment and its impact on the community.

Small businesses hit hard by cuts and changes in Focus on Energy

From an article by Judy Newman in the Wisconsin State Journal:

Focus on Energy, a statewide program that promotes energy efficiency, is in the midst of big changes: new management by an out-of-state corporation, suspension of a popular rebate program, and sharp funding cuts in the pending state budget.

Nearly 20 people already have lost their jobs, mostly in Madison, as a result of the management change.

Meanwhile, dozens of small Wisconsin businesses that specialize in setting up solar panels and wind turbines fear for their futures because of the slashed allocation and rebate removal.

“It’s a lot of economic activity and jobs in Wisconsin. It’s a lot of energy efficiency, as well,” said Keith Reopelle, policy director for Clean Wisconsin.

Focus on Energy was created in 2001 to provide education, resources and cash incentives to Wisconsin residents and businesses to increase the use of energy-efficient products and systems, from furnaces to solar panels to vending machines.

In the past 10 years, more than 91,000 businesses and more than 1.7 million residents used the program and saved $2.20 for every dollar spent, according to Focus data. . . .

Since taking over Focus on Energy on May 9, one of Shaw’s first decisions, with PSC support, was to suspend payments to businesses that install renewable-energy systems, as of June 30.

Contractors like Seventh Generation Energy Systems were stunned.“It’s pretty devastating,” said James Yockey, chief executive officer. “It probably took out six to 10 projects that we were looking to close … for work in the fall and the coming spring.”

Several of the projects were wind turbines for farmers. “I think the incentives are decisive in people saying yes,” Yockey said . . . .

Program supporters have appealed to Gov. Scott Walker to veto the Focus budget cut, including a letter signed by 124 Wisconsin businesses. As of Friday, there was no word on his response. Walker is scheduled to sign the budget today.

“Cutting Focus on Energy will result in higher electricity bills and fewer jobs,” Randy Johnson, president of U.S. Lamp, a Green Bay energy-efficient lighting design company, said in the letter.

Seventh Generation’s Yockey said he hopes to avoid laying off any of his 16 employees by aiming his business at other states, and that could mean moving the company. “We prefer to be located in Madison but the bottom line is: we’ll see where the business takes us,” he said.