Small businesses hit hard by energy program cuts and changes

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.

State’s Hostility Toward Renewables Escalates; “Leaders” Lag Citizenry on Wind Support

Two articles from Catching Wind, a newsletter published by RENEW Wisconsin with funding from a grant from the U.S. Department of Energy:

State’s Hostility Toward Renewables Escalates
At the urging of Wisconsin utilities, several lawmakers have introduced a bill to allow a renewable energy credit (REC) to be banked indefinitely. If adopted, this measure (AB146) would constitute the most devastating legislative assault yet on the state’s renewable energy marketplace, which is already reeling from the suspension of the statewide wind siting rule this March and the loosening of renewable energy definitions to allow Wisconsin utilities to count electricity generated from large Canadian hydro projects toward their renewable energy requirements.

“Leaders” Lag Citizenry on Wind Support
Public support for wind energy development has held strong against the attacks launched by Governor Walker and the Legislature’s new Republican majority, according to a poll conducted between April 11 and April 18 by the St. Norbert College Survey Center for Wisconsin Public Radio.

Asked whether Wisconsin should “increase, decrease or continue with the same amount” of energy supply from various sources, 77% favored increasing wind power, the highest of any option (60% favored increasing hydropower, 54% biomass, 39% natural gas, 27% nuclear, and 19% coal).

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.

Buffalo County development project on hold; "The uncertainty is killing us."

From an article by Clay Barbour in the Wisconsin State Journal:

In the past six months, three wind farm developers with a combined investment of more than $600 million have stopped operations in Wisconsin — victims of regulatory uncertainty and what some now perceive as a hostile business environment for “green” energy.

The wind farms — planned for Calumet, Brown and Green Lake counties — would have created more than 1,100 jobs and helped Wisconsin reach its goal of generating 10 percent of its energy through renewable sources by 2015.

But new wind regulations, more than two years in the making, were shelved as the Public Service Commission works on a more restrictive set. Combined with a series of initiatives pushed through by Gov. Scott Walker and the Republican-led Legislature, industry officials and environmental advocates say Wisconsin seems more concerned with making green than being green.

“In a typical year, you win some and you lose some. It’s about a 50-50 breakdown,” said Jennifer Giegerich, legislative director for the Wisconsin League of Conservation Voters. “But this year, it has been one loss after another. We are going backwards, fast. And it’s scary. . . .”

Currently the Public Service Commission is holding meetings with advocates and opponents, trying to iron out a compromise. Neither side wants to start from scratch, but PSC officials said they are at a standstill.

“The uncertainty is killing us,” said Dan Rustowicz, of Minnesota’s Redwind Consulting, a company trying to develop a wind farm in Buffalo County. “It’s a shame because Wisconsin has good wind. But we have other options. If you don’t have the political support here, why try and push that rope?”

Legislators are exporting wind energy jobs and torpedoing all other 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.