Legislators Fire Blanks at Clean Energy Jobs Act

A commentary by Michael Vickerman, executive director of RENEW Wisconsin:

Immediate release
April 15, 2010

More information
Michael Vickerman
RENEW Wisconsin
608.255.4044
mvickerman@renewwisconsin.org

Statement of Michael Vickerman
Executive Director – RENEW Wisconsin

Legislators Fire Blanks at Clean Energy Jobs Act

In an April 13 statement, Reps. Mike Huebsch (R-West Salem), Phil Montgomery (R-Green Bay), and Scott Gunderson (R-Waterford) contend that the substitute amendment for the Clean Energy Jobs Act, released earlier this week, will drive up electric rates across Wisconsin. As ammunition for their argument, the representatives point to recent requests in Iowa to raise electric rates, which they attribute to the state’s renewable energy policy.

The argument advanced by these three lawmakers is truly absurd, given the facts of the situation. In the first place, Iowa’s Alternative Energy Production (AEP) law, which dates from 1983, requires the state’s two largest electric utilities to add a mere 105 megawatts (MW) of generating capacity between them. By 1997, both utilities had achieved full compliance with that law. That mandate has not been increased or modified since that time.

Fast forward to April 2010. Windpower capacity alone in Iowa now totals 3,670 MW, and the Hawkeye State is now the second largest producer of wind-generated electricity in the nation behind Texas. According to the Iowa Policy Project, windpower accounted for 14% of the state’s electric output in 2009. Additional information on windpower development in Iowa can be accessed here.

The vast majority of Iowa’s windpower capacity was built for reasons other than complying with the state’s renewable energy policy. Iowa utilities invested in windpower because it is the lowest cost generation option available to them. Here’s what MidAmerican Energy Company, Iowa’s largest investor-owned utility, says about its windpower assets.

MidAmerican began building wind turbines in 2004 and has made the investment without raising customers’ electric rates. The price of electricity per kilowatt-hour … for MidAmerican customers is lower today than it was in 1995, and the company has committed to not seek an electric rate increase to become effective until 2014, which is nearly 20 years without a rate increase.

Given MidAmerican’s experience with windpower, it is clear that the allegation from Reps. Huebsch, Montgomery and Gunderson was spun without any apparent connection to reality. The proper place to file a claim this ludicrous is in a manure digester, where it can be broken down into usable energy.

It’s worth pointing out that a significant percentage of Iowa’s wind capacity serves Wisconsin utilities, among them Madison Gas & Electric (MGE), which owns the 30 MW Top of Iowa 3 installation and purchases additional supplies of wind-generated electricity from independently owned facilities there. These facilities were constructed after 2006, the year Wisconsin’s current renewable energy standard was enacted. Yet MGE’s residential ratepayers have seen annual rate increases of only 1.5% in the last four years. Compared with other expenses, such as college tuition, health insurance premiums, and vehicle registration fees, electricity cost increases have barely been noticeable.

Windpower’s rapid growth in the Upper Midwest has also contributed to the reduction of fossil fuel consumption, resulting in lower natural gas prices. That benefit is passed through directly to Wisconsin energy users in the form of lower heating bills. Indeed, over the last 12 months, overall energy costs declined measurably for most Wisconsin households and businesses, thanks to the prolonged slump in natural gas prices.

There is no surer way to control energy bills than to reduce the state’s reliance on imported fossil fuels through increased conservation and substituting renewable resources wherever practical. The choice before the Legislature is clear cut and momentous. Either it can embrace a 15-year commitment to invigorate the state’s economy through sustained investment in clean energy or it can decide to coast along on current energy policies until they lapse several years from now and lose their force and effect.

We at RENEW believe the Clean Energy Jobs Act will propel the clean energy marketplace into an economic powerhouse that will generate jobs and help Wisconsin businesses remain competitive. We strongly support the passage of the Clean Energy Jobs Act bill as amended.

–END–

RENEW Wisconsin is an independent, nonprofit 501(c)(3) organization that acts as a catalyst to advance a sustainable energy future through public policy and private sector initiatives. More information on RENEW’s Web site at www.renewwisconsin.org.

RENEW Wisconsin Backs Amended Clean Energy Jobs Act

IMMEDIATE RELEASE
April 15, 2010

MORE INFORMATION
Michael Vickerman
RENEW Wisconsin
608.255.4044
mvickerman@renewwisconsin.org

RENEW Backs Amended Clean Energy Jobs Act
The board of directors of RENEW Wisconsin approved, without dissent, the following resolution in support of the amended version of the Clean Energy Jobs Act, according to Michael Vickerman, RENEW’s executive director:

RENEW Wisconsin strongly supports passage of the Clean Energy Jobs Act. While RENEW recognizes that future legislative improve- ments will be needed, it is incumbent upon the State to extend and expand Wisconsin’s commitment to a clean energy infrastructure with associated clean energy job creation.

END
RENEW Wisconsin (www.renewwisconsin.org) is an independent, nonprofit 501(c)(3) organization that acts as a catalyst to advance a sustainable energy future through public policy and private sector initiatives.

Organic Valley supports Clean Energy Jobs Act

From a news release issued by Organic Valley:

Proposed Wisconsin Legislation will Encourage Investment in On-Farm Renewable Energy Development

La Farge, Wis. – Commitment to renewable energy will help the economy grow, decrease dependence on fossil fuels, and create a healthier environment for future generations. Acknowledging the widespread benefit of renewable energy development to farmers and rural America, Organic Valley today pledges its support of the renewable energy provisions within the Clean Energy Jobs Act, currently being considered by the Wisconsin legislature. As a farmer-owned cooperative of 1,652 organic family farms, Organic Valley takes a strong interest in the health and sustainability of small-scale family farms and rural communities. The cooperative has embraced renewable energy as a clean, responsible way to provide farmers with a reliable, homegrown source of energy and a consistent source of income.

“Organic Valley farmers are conscientious,” said Cecil Wright, vice president of sustainability and local operations for Organic Valley. “We care about what goes into our products and the impacts our agricultural practices have on our local environment. Legislation to encourage renewable energy development will provide more opportunities for our members to make their farms more productive and environmentally sound.”

The Clean Energy Jobs Act includes an Enhanced Renewable Portfolio Standard (RPS), which will allow Wisconsin residents to receive 25% of electricity from renewable energy by 2025, with at least 10% of electricity coming from renewable energy sources within the state. In addition, the bill includes provisions which encourage small-scale renewable energy generation, which would enable Wisconsin families considering energy projects such as manure digesters, small wind turbines and solar projects to move forward.

“Organic Valley promotes on-farm renewable energy projects through our Farmer Renewable Energy Program,” said Wright. “Passage of this legislation will allow more members to participate in the program and offset some of their energy costs, creating even more sustainable farms.”

Groups urge passage of new version of Clean Energy Jobs Act legislation

Diverse groups lined up to support passage of the rewritten version of Clean Energy Jobs Act legislation when the new provisions were announced on Tuesday. Group already releasing statements of support include:

+ Clean Wisconsin.
+ AFL-CIO
+ Wisconsin Business Council
+ Clean, Responsible Energy for Wisconsin’s Economy (CREWE)
+ Wisconsin Environment
+ WPPI Energy.

According to the bill’s co-authors the highlights of the bill make the following changes:

+ Increases the use of renewable resources to meet the state’s future energy needs, requiring 25 percent of Wisconsin’s energy needs are met by renewable sources by 2025, creates new opportunities for Wisconsin.
+ Establishes graduated statewide electricity savings goals that lead up to a 2 percent reduction by 2015 and annual reductions of 2 percent thereafter, this will help reduce energy costs to businesses and homes across the state.
+ Large conservation and efficiency projects that meet workforce standards could count toward a portion of the RPS, which accelerates savings and provides options for utilities to create jobs.
+ Supports the development of small scale renewables such as solar, wind and manure digesters through expanded Focus on Energy grants and loans that will now total $25 million per year each year for a four year period. This will allow Wisconsin Companies to grow their business and create more jobs.
+ Modifies, but not repeal, Wisconsin’s moratorium on nuclear power plants. The language has been tightened to remove the threat of constitutional challenge by tying those changes to the state’s traditional regulatory authority over the need and siting of any plant.
+ Adjusts several transportation provisions, including the elimination of the California vehicle emissions standard; the proposed low carbon fuel standard tied to decisions in other states; and boiler efficiency standards that could cause conflict with EPA regulations.

The co-authors also asked the Public Service Commission to update its cost analysis of the legislation, taking into account the changes made in the substitute amendment.

Groups urge passage of new version of Clean Energy Jobs Act legislation

Diverse groups lined up to support passage of the rewritten version of Clean Energy Jobs Act legislation when the new provisions were announced on Tuesday. Group already releasing statements of support include:

+ Clean Wisconsin.
+ AFL-CIO
+ Wisconsin Business Council
+ Clean, Responsible Energy for Wisconsin’s Economy (CREWE)
+ Wisconsin Environment
+ WPPI Energy.

According to the bill’s co-authors the highlights of the bill include:

+ Increases the use of renewable resources to meet the state’s future energy needs, requiring 25 percent of Wisconsin’s energy needs are met by renewable sources by 2025, creates new opportunities for Wisconsin.
+ Establishes graduated statewide electricity savings goals that lead up to a 2 percent reduction by 2015 and annual reductions of 2 percent thereafter, this will help reduce energy costs to businesses and homes across the state.
+ Large conservation and efficiency projects that meet workforce standards could count toward a portion of the RPS, which accelerates savings and provides options for utilities to create jobs.
+ Supports the development of small scale renewables such as solar, wind and manure digesters through expanded Focus on Energy grants and loans that will now total $25 million per year each year for a four year period. This will allow Wisconsin Companies to grow their business and create more jobs.
+ Modifies, but not repeal, Wisconsin’s moratorium on nuclear power plants. The language has been tightened to remove the threat of constitutional challenge by tying those changes to the state’s traditional regulatory authority over the need and siting of any plant.
+ Adjusts several transportation provisions, including the elimination of the California vehicle emissions standard; the proposed low carbon fuel standard tied to decisions in other states; and boiler efficiency standards that could cause conflict with EPA regulations.

The co-authors also asked the Public Service Commission to update its cost analysis of the legislation, taking into account the changes made in the substitute amendment.