Statement of Opposition to AB 596

by | Jan 16, 2014 | Uncategorized

Below is RENEW’s statement on AB 596, a bill to expand the universe of renewable
energy credits that utilities can use to comply with Wisconsin’s
Renewable Electricity Standard. The bill would allow utilities to apply
renewable energy credits from certified generators toward their
renewable electricity requirements, irrespective of when the generator
was placed in service. The current PSC rule on renewable energy credits
permits utilities to apply renewable energy credits created by
qualifying generators only if they were placed in service in 2010 or
after.

Statement of RENEW
Wisconsin in Opposition to AB596
Assembly Committee
on Energy and Utilities
January 9, 2014
RENEW Wisconsin leads and represents businesses,
organizations, and individuals who seek more clean renewable energy in
Wisconsin. RENEW Wisconsin has been advancing a sustainable energy future for
Wisconsin since 1991. Of our 300+ members, more than 60 are companies
headquartered in Wisconsin.
Wisconsin’s renewable electricity standard (RES), which
requires electricity providers to increase their renewable energy supplies by
six percentage points, has been the primary mechanism for expanding renewable
energy’s share of the state’s electric energy resource mix. I say “has been”
because the utilities are now effectively in full compliance with the law’s
2015 target, according to the Public Service Commission. Without a change in
the 10% target, We Energies’ 50 MW biomass generation plant at Rothschild,
which was placed in service in late 2013, shapes up to be the last
utility-owned renewable power plant leveraged by the RES. As of this moment,
none of the electric providers subject to Wisconsin’s RES has publicly
announced plans to expand their renewable generation portfolio.
The aim of AB 596 is to allow renewable energy credits
created by qualifying renewable facilities older than 2010 to be applied to
Wisconsin’s RES. Because these facilities are already producing renewable
electricity today, the adoption of this bill would not add new kilowatt-hours
to the state’s renewable energy supplies. Moreover, as noted above, Wisconsin’s
electricity providers are already in compliance with the state’s Renewable
Electricity Standard. Therefore, they have no need for the renewable energy
credits (REC’s) that would be created through the adoption of AB 596.
RENEW does not object in principle to policy changes that
allow electricity providers to acquire RECs created by older generators for the
purpose of satisfying their renewable energy requirements, provided that there
is a need for this additional supply of RECs. But that need would be created by
raising our 10% standard, which AB 596 does not do. Absent any provision to
increase the RES above its current levels, this legislation would have no
practical effect on utility resource decisions if adopted.
This legislation begs the question: what is the logic
behind creating new REC’s without creating a rationale for electric utilities
to use them?
We would support the provision proposed here if it were
grounded in legislation to expand the current RES. Sadly, no growth in the RES
is contemplated in this bill, which is why we oppose it.
Why is an expanded RES off the table?
Surely it can’t be the experience of neighboring states.
Wisconsin’s electricity rates are at the high end among Upper Midwest states,
yet it has less installed wind power per capita than its neighboring states.
In 1999, Wisconsin was the first Midwest state to adopt a
Renewable Electricity Standard. In 2006 the Legislature strengthened the
standard, from 2.2% by 2011 to 10% by 2015. Between that time and today, it has
been a highly effective mechanism for creating jobs, spurring demand for
locally manufactured equipment, and increasing the flow of tax revenues and
supplemental income into rural landowners and businesses. All the economic and
environmental objectives that can be achieved with a 10% standard have been
achieved. But the current RES has no capacity left to leverage new supplies of
renewable electricity, and the only way to continue reaping the benefits of a
cleaner, healthier and less financially risky energy mix is to expand and
extend this policy tool.  Such a move
would not be rash or radical; indeed, Wisconsin has done it before. 
Other states are not sitting still. By the end of 2014, renewable
energy is expected to account for more than 30% of Iowa’s electricity. By 2020,
Minnesota will become the regional powerhouse for solar. By every economic
measure, those two states are outpacing Wisconsin, and their cleaner,
lower-cost energy mix is a significant element in their ability to attract and
sustain new investments. If Wisconsin is serious about competing with Iowa and
Minnesota for new jobs and business opportunities, it needs to put itself back
on a growth track for renewables, and a higher RES is the best vehicle for
accomplishing that.  The current policy
drift on energy is not going to get the job done.
Respectfully
submitted,
Don
Wichert
RENEW
Wisconsin Board member

Summary of RENEW’s 2014 “We Mean Business!” Summit

by | Jan 16, 2014 | Uncategorized

2014 RENEW Wisconsin Energy Policy Summit
We
Mean Business
Summary
RENEW Wisconsin hosted its
third annual Energy Policy Summit, We Mean Business, on Friday, January 10, 2014, at the Pyle Center on the UW-Madison
campus.  Although our previous summits pulled
in large audiences and sparked many lively discussions, by all accounts RENEW’s
We
Mean Business summit topped them all.
By the numbers:
  • 241 registered
  • 211 attended
  • 3 standout keynote talks
  • 3 renewable energy business and policy panel
    sessions
  • 6 interactive breakout group discussions, each
    supported by its own policy brief
  • 6 clean energy projects inducted to the Million
    Watt Club
  • 7 people and/or organizations recognized as
    Renewable Energy Leaders
  • One gala social with beer, chicken skewers,
    and veggies
The purpose of the Summit
was to inform, engage, and inspire those in attendance with the vast potential
of renewable energy to invigorate Wisconsin’s economy and help it compete for
new business ventures, while stimulating job growth and protecting the environment.  The vast majority of attendees received those
themes in mega doses. 
A few quotes from e-mails
received shortly after the event:
·       
”What an honor to be part of such a class
production! Thank you so much.”
·       
“What a great summit! It did so much of
what I look for in an event like that with all the great info updates, various
incredible contexts for all amazing initiatives and progress, and plenty of
inspiration during a tough sledding season.”
·       
“Just wanted to say thank you and
congratulations.  The Summit always gets better.  You all did a great
job with the speakers.”
·       
“Great job with this year’s
conference.  In my humble opinion, this was by far the best one you guys
have put on yet, and it may be hard to top in 2015.  Great, engaging speakers
throughout the day, and good panels too.”
There were three major themes that reverberated
throughout the day:
1       
A major transformation is occurring in
the energy sector, driven by distributed applications of energy efficiency and
renewable energy, which is rendering the traditional energy production business
model increasingly obsolete.
2       
Wisconsin is lagging behind the Midwest,
much of the US, and the world in adopting and adapting to this new business
model, dampening the state’s prospects for sustained job growth.
3       
The opportunity for Wisconsin to
dramatically increase its use of clean renewables still exists, but only
through strengthening its policies along the lines suggested by RENEW.
All the Energy Policy Summit speaker talks (that
were electronic) are located on the RENEW Website:  http://renewwisconsin.org/2014_Summit/agenda.html

Tom Still’s commentary on the Summit (linked below) was published in the Appleton Post Crescent.  Still is the Executive Director of the Wisconsin Technology Council and acted as a moderator for the Research, Jobs, & Innovation Panel during the Summit.  

http://www.postcrescent.com/article/20140118/APC03/301180307/Tom-Still-column-Striking-an-energy-generation-balance-Will-Wisconsin-late-dinner-?nclick_check=1

“As other states lead, WIS. renewable businesses aim to catch up”

by | Jan 13, 2014 | Uncategorized

This past Friday, January 10th, RENEW Wisconsin hosted its third annual Energy Policy Summit.  The Summit was a great success and RENEW would like to thank all of the sponsors, speakers, and attendees who made it possible.

Below is an article by Thomas Content of the Milwaukee Journal Sentinel that recaps the Summit’s topics and speeches.

As other states lead, WIS. renewable businesses aim to catch up

Renewable energy businesses that want to develop projects in Wisconsin are having success in other states, while looking for ways to develop more projects here.
DVO, a Chilton-based company that is the state’s leading builder of waste-to-energy digesters, is actively pursuing projects in places like Serbia, Chile and Vietnam as well as Vermont and other states, said Melissa Van Ornum of DVO.
DVO is seeing less demand to build projects in Wisconsin after utilities increased the price they would pay to buy the electricity generated by the dairy farm digesterse in the state.
Wisconsin is still the nation’s leader in development of waste-to-energy digesters, but other states are catching up fast, she said.
Matt Neumann of Sunvest Solar in Pewaukee said his company has been actively installing solar projects around the country, including Missouri. Of more 212 projects the company has in the pipeline this year, just one is in Wisconsin, he said.
Wisconsin needs to open the door to more solar through allowing third-party ownership of solar projects, which enable solar developers to own the panels and homeowners and businesses to lease the panels on their rooftops, he said.
Renewable energy supporters need to find ways to reach across the aisle to find support from the Republican Party, said Neumann,
son of former Republican Rep. Mark Neumann.
“I’m a conservative, and this should not be a partisan issue,” he said.
Nationwide, 80% of new solar installations last year came in states like New Jersey, California and Arizona that have given the go-ahead to third-party ownership.
In Wisconsin, policymakers have taken a go-slow approach to expanding renewable energy over concerns about the impact on prices paid by other utility customers.
Chris Schoenherr, deputy secretary of the state Department of Administration, said the Public Service Commission is looking into the issue, but agreed a go-slow approach is prudent.
Utilities have concerns about allowing too many solar projects, and the ripple effect on other customers if large businesses and other customers shift to generate their own power. Utilities have fixed costs that need to be paid for and policymakers need to be measured to assure that utility finances aren’t upended by distributed generation, he said.
But by not pursuing renewable energy, the state is falling behind its neighboring states, speakers at the conference said. Michigan built more wind power in 2012 than Wisconsin has built over the past 15 years, he said.
Wisconsin was among the first states to implement a renewable energy target but other states have moved to enact targets that are more aggressive than Wisconsin’s.
In Minnesota and Iowa, where utility costs are less expensive than Wisconsin, utilities are well on their way to hit 25% to 30% of their power from renewable sources.
In Minnesota, Xcel Energy is moving to build more wind farms in a bid to meet the renewable energy standard as well as reduce its overall emissions of the greenhouse gas carbon dioxide, said Mike Bull of the Center for Energy and Environment in Minneapolis.
In addition, the new wind farms are projected to reduce costs for customers over time because there is no fuel price that needs to be paid when the wind blows, Sullivan said.
As a result, Xcel’s aggressive move to add wind power in 2013 represents an investment of more than $3.5 billion, said Michael Noble of Minnesota-based Fresh Energy.
“None of that was driven by mandates. None of that was driven by renewable energy standards, none of that was driven by state law,” he said. “That was all driven by economics: it’s cheaper.”
Now that Wisconsin’s utilities have largely met the state’s 2015 renewable energy standard, it may soon be time to expand that, lawmakers at the conference said.
“We must always push the bar up a little higher to see how much we can do because this is a competitive world,” said Sen. Dale Schultz, R-Richland Center.
Schoenherr, of the Department of Administration, said the time isn’t necessarily right to move forward with expanding the Wisconsin renewable standard because utility sales are flat and the state currently has enough power to meet its needs. The time to consider it would be when the state is looking to add more power plants.
But that time isn’t far off, as two state utilities announced last year they are considering building new natural gas-fueled power plants by the end of the decade.
Short of those bigger policy initiatives, the state should move first to expand funding for renewable energy projects through the state Focus on Energy program – which has suspended funding for renewables twice in recent years, said Rep. Katrina Shankland, D-Stevens Point.
“The last couple years have been a real roller coaster for renewable energy producers,” said Michael Vickerman, program and policy director for the Madison-based nonprofit group Renew Wisconsin.



Read more from Journal Sentinel: http://www.jsonline.com/blogs/business/239679511.html#ixzz2qIySBZHO 
Follow us: @JournalSentinel on Twitter

Honors Set for Wisconsin Renewable Energy Leaders

by | Jan 8, 2014 | Uncategorized

Awards Will Recognize Innovations, Achievements, Local Pioneers
(Madison) – At its third annual Energy Policy Summit this week, RENEW Wisconsin will present
awards to municipalities, companies and individuals whose actions are fueling the expansion of
the renewable energy marketplace in Wisconsin.
Titled “We Mean Business,” RENEW’s summit
is set
for January 10, 2014, and will take place at
The Pyle Center on the UW–Madison campus.
“The people, companies and municipalities we will recognize this Friday are making a lasting impression on Wisconsin’s renewable energy landscape,” said RENEW Wisconsin Executive Director Tyler Huebner. “As Wisconsin’s preeminent
clean energy organization, RENEW benefits greatly from their pioneering innovations and hard work, which help prepare the ground for
broader policy advances.”
“We at RENEW are honored to have the opportunity to work closely with these award winners
and
take inspiration from their ongoing commitment to advancing clean energy here,” Huebner said.
Please see our previous blog post on award winners for RENEW’s class of 2013 renewable projects: http://www.renewwisconsin-blog.org/2013/12/renew-to-honor-class-of-2013-renewable.html
A list of award categories and recipients appears below.
  

  

Municipal Renewable Energy Program of the Year -Milwaukee Shines (Office of Environmental Sustainability, City of Milwaukee)
For leadership in organizing neighborhood group
purchases and establishing a property
tax
financing tool to reduce up–front installation costs of solar. 

Distinguished Public Service Award
– Roger Kasper, Department of Agriculture, Trade and
Consumer Protection 
Honoring his
effective behind-the scenes work in building a cohesive constituency thathas made Wisconsin a national leader in farm–based renewable energy development.

Green Power Champion of
the Year – Metcalfe’s Market

For its commitment to 100% Green Power by purchasing Renewable Energy Certificates
created by local and independent generators.
      Innovative Renewable Energy Project of the Year – City of
Monona
For its commitment to energy independence by hosting third party–owned solar arrays
on
four rooftops totaling 156 kW and acquiring renewable energy credits created with
the generation.
      Innovative Renewable Energy Developer of the Year – Solar Connections
For leadership in developing innovative financial arrangements to enable residential
customers and nonprofit entities to host solar electric systems on their premises.
      Innovative Renewable Energy Developer of the Year – Falcon Energy Services
For innovative financial sponsorship of renewable energy projects in Wisconsin.
     Lifetime Achievement Award – Lee Cullen, Cullen, Weston, Pines & Bach
Outstanding
service as counsel for numerous clean energy businesses and advocacy organizations, and outstanding leadership in crafting, shaping
and
defending
Wisconsin’s
renewable energy policy framework throughout his professional
career.
To learn more about
RENEW’s Energy
Policy
Summit, go to
http://renewwisconsin.org/2014_Summit/

“Massive solar plan for Minnesota wins bid over gas”

by | Jan 2, 2014 | Uncategorized

Massive solar plan for Minnesota wins bid over gas

  • Article by: David Shaffer
  • Star Tribune
  • December 31, 2013 – 8:58 PM

http://www.startribune.com/business/238322571.html

Minnesota soon could see at least a sevenfold expansion of solar power.
In
an unprecedented ruling, a judge reviewing whether Xcel Energy should
invest in new natural gas generators vs. large solar power arrays
concluded Tuesday that solar is a better deal.
If
the finding by Administrative Law Judge Eric Lipman is upheld by the
state Public Utilities Commission (PUC), Edina-based Geronimo Energy
plans to build about 20 large solar power arrays on sites across Xcel’s
service area at a cost of $250 million.
“It says
solar is coming in a big way to the country and to Minnesota,” Geronimo
Vice President Betsy Engelking said of the ruling.
Geronimo’s
Aurora Solar Project would receive no state or utility subsidies, but
would qualify for a federal investment tax credit. Engleking said it is
the first time in the United States that solar energy without a state
subsidy has beaten natural gas in an official, head-to-head price
comparison.
“The cost of solar has come down
much faster than anyone had anticipated,” she said in an interview.
“This is one of the reasons solar is going to explode.”
The
largest of the Geronimo projects would be five times bigger than the
state’s largest solar array in Slayton, Minn. Some would cover up to 70
acres of land. The proposed sites are in 17 counties, mostly in central,
eastern and southeastern Minnesota.
It is the
first time the state has used a competitive bidding process for a major
power generation project. The commission ordered the trial-like
proceeding to force energy companies to compete on price.
Xcel,
based in Minneapolis, and three other energy companies offered various
proposals, mostly generators powered by natural gas. Xcel’s plan
included a new gas generator at its Black Dog plant in Burnsville, where
the utility intends to retire the remaining coal-burning units.
In
a 50-page ruling, Lipman said “the greatest value to Minnesota and
Xcel’s ratepayers is drawn from selecting Geronimo’s solar energy
proposal …”
If the Aurora project is built, Xcel
likely would purchase the power under a long-term agreement. That could
help Xcel toward its requirement to get 1.5 percent of its power from
the sun by 2020 under a new state energy law. Xcel also is counting on
rooftop solar systems, community-owned arrays and its own large projects
to meet that goal.
Lipman said that if solar
alone can’t supply all of Xcel’s extra power needs in the next few
years, the utility could take up an offer to purchase surplus energy
from Great River Energy, the state’s second-largest power company. The
judge also said Xcel will have time to consider other generation
projects if electrical demand picks up.
Xcel
said in a statement that it appreciated Lipman’s work, but that it
disagreed with some of the findings and would file a written response.
Under the PUC’s rules, the competitors and other interests can take
exception to the judge’s ruling before the five-member commission takes a
vote.
Geronimo already does business with Xcel,
selling the output of its Prairie Rose Wind Farm in Rock County, in far
southwestern Minnesota. Two of four planned wind farms that Xcel will
add in the next two years — near Windom, Minn., and near Jamestown, N.D.
— are being built by Geronimo. The company has built two smaller wind
farms in southeastern Minnesota and is about to construct two more wind
farms in Michigan and Nebraska for other utilities.
Other competitors
The
other competitors considered by the judge were Houston-based Calpine,
which proposed a gas turbine in Mankato at its existing power plant
there and Chicago-based Invenergy, which proposed gas turbines at Cannon
Falls and Hampton. Xcel also proposed two gas units near Hankinson,
N.D.
“We are reviewing the [judge’s]
recommendations, and will evaluate our next steps in the docketed
proceeding,” Craig Gordon, Invenergy vice president of sales and
marketing, said in an e-mail Tuesday.
If the
Aurora Project is approved, Geronimo said the solar arrays would be
built in 2015 and 2016. Engelking said that Geronimo already has signed
deals for land and that it has identified more sites than needed in case
some don’t work out.
Each of the ground-mounted arrays would be next to an existing substation, avoiding transmission-line costs.
She
said the company still needs state or local permits. But the company
has visited with local governments and has pledged to make payments in
lieu of taxes ranging from $50,000 to $110,000 a year.
Geronimo,
a renewable energy developer, doesn’t intend to own the projects, she
said. Its financing partner, Enel Green Power, has the first option to
acquire them, she said. But it’s possible Geronimo could make a deal to
sell the arrays to Xcel or other energy companies, she said.
David Shaffer • 612-673-7090 • @ShafferStrib