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.

120 businesses urge funding support for job creation through energy efficiency and renewable energy

120 businesses urge funding support for job creation through energy efficiency and renewable energy

From an article by Charles Davis in the Green Bay Press Gazette:

Thousands of future jobs are at stake if Gov. Scott Walker doesn’t veto a provision in the state budget that limits funding for the Focus on Energy program, local business leaders said Wednesday.

“I see it being a real detriment to our business and our customers going forward if we don’t have these funding increases,” said Jeff Klonowski, regional manager of Kaukauna-based Energy Federation Inc., which supplies lighting fixtures, foam and weather-stripping materials to area contractors.

But supporters of the provision object to the amount of the funding increase, not the program.

“The Focus on Energy program certainly had a lot of benefits, but the huge increase in assessments that were put in place at the end of last year, we think, were too much, too soon,” said Scott Manley, director of environmental and energy policy for Wisconsin Manufacturers and Commerce, the state’s largest business lobby.

Walker received a letter Wednesday signed by more than 120 businesses asking that he veto that provision in the state budget bill. His office responded with a one-line statement: “We’ll evaluate that provision and make any veto-related announcements once the decisions have been finalized.”

The program
The statewide Focus on Energy program is funded by tax assessments on utility bills and provides grants to help homeowners and businesses pay for energy-efficient upgrades. It also helps pay for consultants to advise property owners on which type of upgrades would be practical and cost-effective. Each year, utility companies contribute 1.2 percent of revenue — about $100 million total — to the program.

The state Public Service Commission proposed in December raising the utility bill assessments from $94 million in 2010 to $256 million by 2014.

The proposal calls for utilities to increase their contributions to $120 million this year. That amount is fixed even if Walker does not veto the provision. However, assessments would drop to around $100 million in 2012, instead of the initial proposed increase of $160 million for that year.

Image by Clean Wisconsin

120 businesses urge funding support for job creation through energy efficiency and renewable energy

120 businesses urge funding support for job creation through energy efficiency and renewable energy

From an article by Charles Davis in the Green Bay Press Gazette:

Thousands of future jobs are at stake if Gov. Scott Walker doesn’t veto a provision in the state budget that limits funding for the Focus on Energy program, local business leaders said Wednesday.

“I see it being a real detriment to our business and our customers going forward if we don’t have these funding increases,” said Jeff Klonowski, regional manager of Kaukauna-based Energy Federation Inc., which supplies lighting fixtures, foam and weather-stripping materials to area contractors.

But supporters of the provision object to the amount of the funding increase, not the program.

“The Focus on Energy program certainly had a lot of benefits, but the huge increase in assessments that were put in place at the end of last year, we think, were too much, too soon,” said Scott Manley, director of environmental and energy policy for Wisconsin Manufacturers and Commerce, the state’s largest business lobby.

Walker received a letter Wednesday signed by more than 120 businesses asking that he veto that provision in the state budget bill. His office responded with a one-line statement: “We’ll evaluate that provision and make any veto-related announcements once the decisions have been finalized.”

The program
The statewide Focus on Energy program is funded by tax assessments on utility bills and provides grants to help homeowners and businesses pay for energy-efficient upgrades. It also helps pay for consultants to advise property owners on which type of upgrades would be practical and cost-effective. Each year, utility companies contribute 1.2 percent of revenue — about $100 million total — to the program.

The state Public Service Commission proposed in December raising the utility bill assessments from $94 million in 2010 to $256 million by 2014.

The proposal calls for utilities to increase their contributions to $120 million this year. That amount is fixed even if Walker does not veto the provision. However, assessments would drop to around $100 million in 2012, instead of the initial proposed increase of $160 million for that year.

Image by Clean Wisconsin

Green jobs growing fast, Wisconsin falling behind

From a blog entry by Sam Weis, media specialist for Clean Wisconsin:

Green jobs represent some of the nation’s fastest growing industries with no reason to believe they will slow down anytime soon, according to a recent report released by Ibisworld.

The report, “Top ten fastest growing industries,” lists the fastest growing sectors in the United States by percentage of revenue and includes wind power (#3), environmental consulting (#7) and solar power (#10). These industries are growing fast and will likely continue to grow for years: the solar industry can expect to grow another 7.9 percent by 2016, and wind can expect to grow 11.2 percent, according to the report.

Green jobs represent a bright spot in today’s troubled economic times. With forecasts of solid growth on the horizon, it would only make sense to invest in clean energy and harness its job-creating potential.

Unfortunately, we seem to be moving in the opposite direction as a state. Early this year, the legislature made it more difficult to construct safe wind farms in Wisconsin, killing proposed wind projects and hundreds of jobs they were set to create.

In May, the Joint Finance Committee voted to cut funding for Focus on Energy, our statewide energy efficiency and renewable energy program. Unless undone by the legislature as a whole, or vetoed by Gov. Walker, this move promises to result in higher energy bills and lost jobs.

Businesses urge legislators not to cut investment in energy efficiency

A news release from Clean Wisconsin:

Letters signed by nearly 100 businesses delivered to Capitol

MADISON – Letters signed by nearly 100 businesses as well as faith, low-income and environmental advocates were delivered to members of the Joint Committee on Finance today, asking them not to eliminatethe funding approved last year for Focus on Energy, a statewide program that helps homeowners and businesses reduce energy use.

“Focus on Energy is a successful program that creates thousands of family-supporting jobs and cuts energy bills,” said Keith Reopelle, senior policy director at Clean Wisconsin. “Cutting this funding would increase
electricity bills as homeowners and businesses would lose the opportunity to reduce their energy bills by a combined $2 billion.”

Joint Finance Committee co-chair Robin Vos has stated his intention to eliminate the funding approved last year several times. That move is likely to happen as early as tomorrow through the committee’s consideration of the state budget, despite the fact that Focus on Energy funding is unrelated to the state budget.

“We urge you to protect the PSC’s investment increase for the program and allow our businesses to grow, add new jobs, and strengthen the local economy,” reads a letter addressed to members of the Joint Finance Committee. “With a proven track record of delivering cost-effective energy savings and driving local business, Focus on Energy should be allowed to grow.”

To date, Focus on Energy has created 24,000 jobs and saved homeowners $2.50 for every $1.00 invested in the program, according to an independent evaluation. When the PSC issued its approval for the increased funding in November of last year, it referenced an energy efficiency-potential study that showed 7,000 to 9,000 new jobs would be created with a similar increase of Focus on Energy funding.

“The Focus on Energy program contributes significant resources to help businesses and residents save energy, create jobs and stay competitive in the marketplace,” said Randy Johnson, president of US Lamp, Inc. “Reducing or eliminating Focus on Energy funding would take away our state’s competitive energy advantage and position us in the bottom, not the top, of states to consider for residence or locating a business. I would urge legislators to keep the Focus on Energy funding in place for the vitality of
Wisconsin.”

Newly appointed Public Service Commission Chairman Phil Montgomery issued a statement two weeks ago, on Earth Day (April 22), lauding the program and pointing out that it saved Wisconsin ratepayers $380 million on their energy bills in 2010 alone.