Wisconsin's scaled-back global warming bill unveiled

From an article by Tom Content in the Milwaukee Journal Sentinel:

A revised state clean energy and global warming bill unveiled Tuesday scales back the scope of the bill but retains a commitment to expand use of renewable energy and open the door to construction of nuclear reactors in Wisconsin.

The revisions, obtained by the Journal Sentinel, were drafted in response to concerns raised by business groups and politicians that the original bill was too unwieldy, too controversial and potentially too costly.

Jettisoned from the package were mandates concerning transportation fuels, including a requirement that Wisconsin require greater use of low-carbon transportation fuels such as biofuels.

To reduce the overall cost of the package, the bill allows energy efficiency gains to count toward a portion of a mandate that 25% of Wisconsin’s electricity come from renewable power sources by 2025.

A combined energy efficiency and renewable energy standard is also part of federal legislation that passed in the U.S. House of Representatives last year.

The state bill would allow one-fifth of the mandate to come through energy savings, most likely from major energy saving initiatives by factories and other big energy users.

Another change responds to concerns raised by utilities concerning a mandate that had been in the earlier bill concerning small renewable energy projects around the state. The mandate has been replaced with expanded funding for small renewable energy projects. The new proposal states a preference that much of that money be allocated toward manure digesters on Wisconsin dairy farms.

The latest version also underscores the consequences of the weak economy and declining sentiment for taking action on global warming.

Doyle signed an executive order creating the task force in April 2007 – well before the collapse in the economy. In December 2009, after details were known, many business groups attacked it and said the recommendations would harm the energy-intensive manufacturing sector.

But some other industries and companies, notably Johnson Controls, the state’s largest public company, said the bill would create jobs and align the state to take advantage of emerging trends in sustainability.

At the same time, the public appears less concerned about climate change. A national Gallup Poll in March showed that the percentage of respondents who believe the seriousness of global warming is “generally exaggerated” has increased from 35% to 48% in two years.

“As introduced, the Clean Energy Jobs Act would reduce greenhouse gas emissions, create jobs, and help keep rising energy bills in check,” said Keith Reopelle, senior policy director at the environmental group Clean Wisconsin, said in a statement. “The substitute amendment represents a compromise that will still accomplish all of these goals, but to a lesser degree than the original bill.”

Clean Wisconsin is still reviewing the details of the changes.

“As we understand them, the changes in the substitute amendment will result in even more jobs and lower energy bills in the next few years by increasing short-term commitments to energy efficiency,” Reopelle said. “However, paring back the renewable energy standard will likely result in less rate relief in the long term, because renewable energy helps hedge against the rising cost of fossil fuels.”

Wisconsin's scaled-back global warming bill unveiled

From an article by Tom Content in the Milwaukee Journal Sentinel:

A revised state clean energy and global warming bill unveiled Tuesday scales back the scope of the bill but retains a commitment to expand use of renewable energy and open the door to construction of nuclear reactors in Wisconsin.

The revisions, obtained by the Journal Sentinel, were drafted in response to concerns raised by business groups and politicians that the original bill was too unwieldy, too controversial and potentially too costly.

Jettisoned from the package were mandates concerning transportation fuels, including a requirement that Wisconsin require greater use of low-carbon transportation fuels such as biofuels.

To reduce the overall cost of the package, the bill allows energy efficiency gains to count toward a portion of a mandate that 25% of Wisconsin’s electricity come from renewable power sources by 2025.

A combined energy efficiency and renewable energy standard is also part of federal legislation that passed in the U.S. House of Representatives last year.

The state bill would allow one-fifth of the mandate to come through energy savings, most likely from major energy saving initiatives by factories and other big energy users.

Another change responds to concerns raised by utilities concerning a mandate that had been in the earlier bill concerning small renewable energy projects around the state. The mandate has been replaced with expanded funding for small renewable energy projects. The new proposal states a preference that much of that money be allocated toward manure digesters on Wisconsin dairy farms.

The latest version also underscores the consequences of the weak economy and declining sentiment for taking action on global warming.

Doyle signed an executive order creating the task force in April 2007 – well before the collapse in the economy. In December 2009, after details were known, many business groups attacked it and said the recommendations would harm the energy-intensive manufacturing sector.

But some other industries and companies, notably Johnson Controls, the state’s largest public company, said the bill would create jobs and align the state to take advantage of emerging trends in sustainability.

At the same time, the public appears less concerned about climate change. A national Gallup Poll in March showed that the percentage of respondents who believe the seriousness of global warming is “generally exaggerated” has increased from 35% to 48% in two years.

“As introduced, the Clean Energy Jobs Act would reduce greenhouse gas emissions, create jobs, and help keep rising energy bills in check,” said Keith Reopelle, senior policy director at the environmental group Clean Wisconsin, said in a statement. “The substitute amendment represents a compromise that will still accomplish all of these goals, but to a lesser degree than the original bill.”

Clean Wisconsin is still reviewing the details of the changes.

“As we understand them, the changes in the substitute amendment will result in even more jobs and lower energy bills in the next few years by increasing short-term commitments to energy efficiency,” Reopelle said. “However, paring back the renewable energy standard will likely result in less rate relief in the long term, because renewable energy helps hedge against the rising cost of fossil fuels.”

Wisconsin's scaled-back global warming bill unveiled

From an article by Tom Content in the Milwaukee Journal Sentinel:

A revised state clean energy and global warming bill unveiled Tuesday scales back the scope of the bill but retains a commitment to expand use of renewable energy and open the door to construction of nuclear reactors in Wisconsin.

The revisions, obtained by the Journal Sentinel, were drafted in response to concerns raised by business groups and politicians that the original bill was too unwieldy, too controversial and potentially too costly.

Jettisoned from the package were mandates concerning transportation fuels, including a requirement that Wisconsin require greater use of low-carbon transportation fuels such as biofuels.

To reduce the overall cost of the package, the bill allows energy efficiency gains to count toward a portion of a mandate that 25% of Wisconsin’s electricity come from renewable power sources by 2025.

A combined energy efficiency and renewable energy standard is also part of federal legislation that passed in the U.S. House of Representatives last year.

The state bill would allow one-fifth of the mandate to come through energy savings, most likely from major energy saving initiatives by factories and other big energy users.

Another change responds to concerns raised by utilities concerning a mandate that had been in the earlier bill concerning small renewable energy projects around the state. The mandate has been replaced with expanded funding for small renewable energy projects. The new proposal states a preference that much of that money be allocated toward manure digesters on Wisconsin dairy farms.

The latest version also underscores the consequences of the weak economy and declining sentiment for taking action on global warming.

Doyle signed an executive order creating the task force in April 2007 – well before the collapse in the economy. In December 2009, after details were known, many business groups attacked it and said the recommendations would harm the energy-intensive manufacturing sector.

But some other industries and companies, notably Johnson Controls, the state’s largest public company, said the bill would create jobs and align the state to take advantage of emerging trends in sustainability.

At the same time, the public appears less concerned about climate change. A national Gallup Poll in March showed that the percentage of respondents who believe the seriousness of global warming is “generally exaggerated” has increased from 35% to 48% in two years.

“As introduced, the Clean Energy Jobs Act would reduce greenhouse gas emissions, create jobs, and help keep rising energy bills in check,” said Keith Reopelle, senior policy director at the environmental group Clean Wisconsin, said in a statement. “The substitute amendment represents a compromise that will still accomplish all of these goals, but to a lesser degree than the original bill.”

Clean Wisconsin is still reviewing the details of the changes.

“As we understand them, the changes in the substitute amendment will result in even more jobs and lower energy bills in the next few years by increasing short-term commitments to energy efficiency,” Reopelle said. “However, paring back the renewable energy standard will likely result in less rate relief in the long term, because renewable energy helps hedge against the rising cost of fossil fuels.”

Costs of coal plants keep going up

Costs of coal plants keep going up

For Immediate Release
April 7, 2010

For More Information Contact
Michael Vickerman
608.255.4044
mvickerman@renewwisconsin.org

Costs of coal plants keep going up
In recent weeks, some groups have suggested that we maintain our current energy portfolio, continuing to rely heavily on coal-fired generation for a substantial amount of our electricity. These groups claim that gradually moving toward more reliance on local, in-state sources of energy will increase electricity costs. These claims have been thoroughly discredited by two economic studies concluding that electricity bills will decrease with the Clean Energy Jobs Act.

Further, these groups refuse to acknowledge the substantial, ongoing costs associated with coal plants. Since 1999, Wisconsin utilities have spent over $2 billion of customer money keeping old, inefficient coal plants running. For comparison purposes, this sum is nearly triple the utilities’ investment in windpower facilities during the same period. Customers have seen the real and substantial impact of these coal plant costs through rising electricity rates over the past several years. These costs are in addition to the more than $700 million (exclusive of transportation costs) we send out of state each year to pay for the coal to fuel these aging plants. Reliance on dirty, antiquated coal plants leaves Wisconsin in a vulnerable position, unable to predict or control energy costs.

Unlike coal, clean resources like biogas, wind and solar will produce energy throughout their productive lives without requiring costly pollution abatement measures. Going forward, the more renewable energy we add to Wisconsin’s energy resource mix, the less exposed we will be to these downstream liabilities. The avoidance of these regulatory risks is another compelling reason for passing the Clean Energy Jobs Act legislation in this session.

Coal Plant Retrofit Costs (1999-2009)
(in Millions of Dollars)

Wind farm rate dispute shows need for Clean Energy Jobs Act

A news release issued by Advocates for Renewable Energy, a coalition which includes RENEW Wisconsin:

For Immediate Release
April 6, 2010

For More Information Contact:
Shaina Kilcoyne: (608) 310-3338

As the article below chronicles, Wave Wind LLC, a Dane County-based wind services company, is ready to build a six-turbine, 10-megawatt project in western Dane County and sell the electricity to the local utility, Madison Gas & Electric (MGE). All the necessary permits have been issued and the turbines are set to be delivered in June.

Unfortunately, Wave Wind cannot find a buyer for the project’s output. MGE contends that it does not need new supplies of renewable electricity until after 2020. Moreover, wholesale power prices are at historic lows, and the standard buyback rate available to third-party power producers like Wave Wind is not sufficient to make the project economically viable. As Wave Wind president Tim Laughlin put it, the standard rate “won’t even allow us to put a shovel in the ground.”

The upshot? Wave Wind will likely install those turbines in another state. Should that happen, most, if not all, of the jobs and business opportunities created by the construction and operation of this facility will follow the turbines to the state in which they are installed. Wisconsin’s loss will be a gain for Iowa or New Mexico.

This is not an isolated phenomenon, nor is it limited to wind energy. Dairy operations and food processors looking to recover energy from their organic wastes also find it difficult to justify investments in biodigesters, even with Focus on Energy incentives. A policy solution is clearly needed to bridge the difference between the production costs of small-scale renewable energy systems and the cost of operating 40-year-old coal plants that have been fully amortized. Neighboring Minnesota now has nearly 500 megawatts of community wind due to a statute that encourages it. Such projects have a very minor impact on overall electric rates. Within the Clean Energy Jobs Act, Wisconsin has the opportunity to promote small-scale renewable energy projects as well.

Two provisions in the Clean Energy Jobs Act are tailored to help producers of locally available renewable energy overcome the economic barriers cited above:

+ A 10% in-state renewable energy set-aside by 2025. This provision would more than double the output from existing renewable generating units in Wisconsin.
+ Incentives and other provisions targeted for smaller renewable generating facilities. These provisions would encourage small-scale, community-based renewable projects throughout the state.

Developing a truly sustainable platform to support Wisconsin’s economic future requires a commitment to local energy sources like wind, organic wastes, wood, solar, and small-scale hydro. Passing the Clean Energy Jobs Act will make it easier to attract and retain the private sector enterprises that drive job growth as well as strengthen rural economies.