RENEW testifies in support of Clean Energy Jobs Act bill

RENEW testifies in support of Clean Energy Jobs Act bill

Michael Vickerman, Josh Stolzenburg (center), owner of North Wind Renewable Energy, LLC, Stevens Point, and a spokesman for Wave Wind, LLC, Sun Prairie, testify in support of the Clean Energy Jobs Act bill before the Special Assembly Committee on Climate Change. Vickerman leans forward to show the committee members a map of renewable energy installations.

From a summary of Michael Vickerman’s (RENEW Wisconsin)
testimony before the Assembly Special Committee on Clean Energy
February 2, 2010:

RENEW Wisconsin strongly supports the provisions in SB450/AB649 to expand the state’s Renewable Energy Standard to 25% by 2025, which includes a 10% in-state renewable energy set-aside. RENEW has evaluated the availability of specific resources to reach that standard and has concluded that meeting such a target is technically feasible. If adopted, the in-state set-aside will become the most powerful engine for job development and capital investment over the next 15 years.

We expect such a requirement to be achieved through a combination of utility-scale power plants and smaller-scale generating units dispersed throughout Wisconsin. With respect to distributed renewable generation, we note the following:

1. The vast majority of the distributed renewable generating units installed in Wisconsin serve schools, dairy farms and other small businesses, churches and local governments.

2. Utilities are not in the business of installing these systems themselves.

3. In many cases the renewable energy installation went forward because there was a special buyback rate available to accelerate the recovery of the original investment made by the customer. Last week, I gave the example of the Dane County community anaerobic digester project that, once operational, will treat manure taken from several nearby dairy farms in the Waunakee area and produce two megawatts of electricity with it. The electricity will be purchased by Alliant Energy through a voluntary biogas tariff worth 9.3 cents/kWh. Unfortunately, Alliant’s biogas program is fully subscribed and is no longer available to other dairy farmers, food processing companies and wastewater treatment facilities served by Alliant.

4. Companies that install solar, wind and biogas energy systems are quintessentially small businesses, many of them family-owned. Renewable energy contractors and affiliated service providers constitute one of the few market sectors where young adults who have acquired the necessary skills to do the job well can find meaningful work at decent pay.

5. By its very nature, distributed renewable energy delivers nearly 100% of its economic punch to the local economy.

Testimony in support of Clean Energy Jobs Act bill

Summary of Michael Vickerman’s (RENEW Wisconsin)
testimony before the
Assembly Special Committee on Clean Energy
February 2, 2010

RENEW Wisconsin strongly supports the provisions in SB450/AB649 to expand the state’s Renewable Energy Standard to 25% by 2025, which includes a 10% in-state renewable energy set-aside. RENEW has evaluated the availability of specific resources to reach that standard and has concluded that meeting such a target is technically feasible. If adopted, the in-state set-aside will become the most powerful engine for job development and capital investment over the next 15 years.

We expect such a requirement to be achieved through a combination of utility-scale power plants and smaller-scale generating units dispersed throughout Wisconsin. With respect to distributed renewable generation, we note the following:

1. The vast majority of the distributed renewable generating units installed in Wisconsin serve schools, dairy farms and other small businesses, churches and local governments.

2. Utilities are not in the business of installing these systems themselves.

3. In many cases the renewable energy installation went forward because there was a special buyback rate available to accelerate the recovery of the original investment made by the customer. Last week, I gave the example of the Dane County community anaerobic digester project that, once operational, will treat manure taken from several nearby dairy farms in the Waunakee area and produce two megawatts of electricity with it. The electricity will be purchased by Alliant Energy through a voluntary biogas tariff worth 9.3 cents/kWh. Unfortunately, Alliant’s biogas program is fully subscribed and is no longer available to other dairy farmers, food processing companies and wastewater treatment facilities served by Alliant.

4. Companies that install solar, wind and biogas energy systems are quintessentially small businesses, many of them family-owned. Renewable energy contractors and affiliated service providers constitute one of the few market sectors where young adults who have acquired the necessary skills to do the job well can find meaningful work at decent pay.

5. By its very nature, distributed renewable energy delivers nearly 100% of its economic punch to the local economy.

In stark contrast to other states, Wisconsin has a well developed market structure for supporting small-scale renewables. Through the ratepayer-funded Focus on Energy program, there is in Wisconsin a human infrastructure that trains and educates thousands of young people to work in the renewable energy arena. Indeed, Wisconsin is a leader in this area. Our expectation is that these workers will apply their skills in the state, fabricating and installing renewable energy equipment in a thoroughly professional manner.

But if we don’t take equal care to create and sustain demand for their skills and services, these workers are apt to leave the state for greener pastures, and Wisconsin’s investment in their education will have gone unpaid. This is why the issue of Advanced Renewable Tariffs is so important to RENEW members.

One final point: Last week several utility representatives recommended that the Legislature strip out the Advanced Renewables Tariff section. RENEW urges you not to heed their advice. While we would support a reworking of this section, including a program cap to limit rate impacts, we cannot support abandoning this initiative altogether and cannot further support a bill that is silent on policies to advance the distributed energy marketplace. That is a bottom-line priority with us.

Submitted by:
Michael Vickerman
Executive Director
RENEW Wisconsin
February 2, 2010

RENEW: Hearing trivialized Advanced Renewable Tariffs

From a letter from RENEW Wisconsin to Senators Jeff Plale and Mark Miller, co-chairs of the Select Senate Committee on Clean Energy, who held a hearing on the Clean Energy Jobs Act bill on January 27:

Dear Senators Miller and Plale:

Thank you for holding a hearing yesterday of the Select Committee on Clean Energy on SB 450 (the Clean Energy Jobs Act bill). You heard a great deal of substantive commentary about much of the bill, particularly the sections dealing with energy efficiency and the expanded Renewable Energy Standard.

Unfortunately, the same cannot be said for the discussion on the proposal to institute Advanced Renewable Tariffs in Wisconsin. Early in the hearing, a speaker framed the issue as “asking a little old lady in Cudahy to subsidize an expensive system in Mequon.” From that point, the discussion devolved into a kind of semi-orchestrated gang-tackling on this issue that continued unabated until I was called upon to speak, some seven hours and forty five minutes after the hearing began. While RENEW members who work for or with solar, wind and biogas energy installation companies were present during the hearing and had registered to speak, none were called prior to myself. All but two (Full Spectrum Solar and Ed Ritger) had to leave before the hearing ended.

Now, I don’t believe the first speaker, a labor leader, had intended to belittle the companies that install customer-sited renewable energy systems or dismiss their contribution to Wisconsin’s economy and environment. Nevertheless, the “little old lady from Cudahy” theme took a life of its own, and as a result, the very important issues of how to support these systems through utility rates and whether these rates should be mandated had become thoroughly trivialized by the end.

Allow me to repeat some of the points I made at yesterday’s hearing:

1. The vast majority of the distributed renewable generating units installed in Wisconsin serve schools, dairy farms and other small businesses, churches and local governments.

2. Utilities are not in the business of installing these systems themselves.

3. In many cases the renewable energy installation went forward because there was a special buyback rate available to accelerate the recovery of the original investment made by the customer. Yesterday, I gave the example of the Dane County community anaerobic digester project that, once operational, will treat manure taken from several nearby dairy farms in the Waunakee area and produce two megawatts of electricity with it. The electricity will be purchased by Alliant Energy through a voluntary biogas tariff worth 9.3 cents/kWh. Unfortunately, Alliant’s biogas program is fully subscribed and is no longer available to other dairy farmers, food processing companies and wastewater treatment facilities served by Alliant.

4. Companies that install solar, wind and biogas energy systems are quintessentially small businesses, many of them family-owned. Renewable energy contractors and affiliated service providers constitute one of the few market sectors where young adults who have acquired the necessary skills to do the job well can find meaningful work at decent pay.

5. By its very nature, distributed renewable energy delivers nearly 100% of its economic punch to the local economy.

Fact check: Business group's radio ad uses bogus global warming data

From an article by Lisa Kaiser in the Shepherd Express (Milwaukee):

A new radio ad sponsored by the right-wing Wisconsin Manufacturers & Commerce (WMC)—attacking the proposed Clean Energy Jobs Act, just introduced in the state Legislature—is, as usual, full of misinformation.
Voices of two anonymous women claim that the bill would cost the average Wisconsin family more than a thousand dollars per year and lead to job losses, as well as high electricity rates and gas prices.

But that claim is based on an already debunked study by the Wisconsin Policy Research Institute (WPRI), largely funded by the ultraconservative Bradley Foundation, and the Beacon Hill Institute, a free-market think tank that accepted more than $50,000 from the Bradley Foundation in 2007 to develop a “tax model” for Wisconsin. (Yes, that is the same Wisconsin Policy Research Institute that was exposed in last week’s Shepherd Express for cooking their results to make their conservative board members happy.)

These two right-wing think tanks produced a report in November that purported to calculate the costs of recommendations of the Governor’s Task Force on Global Warming. That report alleged that the impacts of all of the task force’s recommendations would lead to roughly 50,000 job losses in the state over the next decade and cost the average Wisconsin resident more than $1,000.

But don’t believe it.

A Complete Fabrication
Thad Nation, executive director of the business alliance Clean, Responsible Energy for Wisconsin’s Economy (CREWE), which supports the bill, called the claims in the WMC ad “a complete fabrication” because it’s based on WPRI’s bogus study that analyzes the costs of all 13 task force recommendations—even though eight of the 13 are not included in the legislation.

“The [WPRI] study is not based on what’s actually included in the Clean Energy Jobs Act,” asserts a CREWE fact sheet.

Here are just a few errors:

•The WPRI study includes the cost of a cap and trade system. But the legislation doesn’t recommend a cap and trade system. That throws the study’s overall cost estimates into doubt.
•The WPRI study made a number of incorrect assumptions. For example, it assumed that 30% of the state’s energy sources would have to come from renewable sources by 2025, rather than the actual figure of 25%.
•The WPRI study doesn’t include the many economic benefits of the legislation.

For example, state Rep. Spencer Black, who helped to author the bill, argues that $20 billion leaves Wisconsin each year to purchase fuel from other states and countries. Redirecting that money toward clean energy sources in Wisconsin—for example, solar or wind power—will increase the state’s tax base and jobs while reducing greenhouse gas emissions.

Governor releases FAQs on Clean Energy Jobs Act bill

From the frequently asked questions (FAQs) on the Clean Energy Jobs Act bill:

Enhanced Energy Efficiency and Conservation
Q: Won’t increased funding for statewide energy efficiency programs come out of the pockets of Wisconsin ratepayers? We shouldn’t be raising energy costs during an economic downturn by adding more fees to our utility bills.

A: Investing more money in energy efficiency has a demonstrable, risk-free payback for Wisconsin residents and businesses. Over the long run we will use less energy, which means we’ll actually be reducing our energy bills.

The cost of conserving energy is far less than the cost of building new power generation. Energy efficiency and conservation efforts are the least-cost means of mitigating carbon pollution.

Investing in energy efficiency also translates into stable, family-supporting jobs, particularly within the building and construction trades and at the 50+ businesses in Wisconsin that manufacture Energy Star appliances, windows, and other products. . . .

Renewable Fuels
Q: Will an Enhanced Renewable Portfolio Standard require the build-out of costly electric generation that Wisconsin doesn’t need, while doing nothing to reduce the demand for electricity? Don’t renewable energy sources cost more than coal and natural gas?

A: Each year, we send over $16 billion out of state to purchase coal, natural gas, and petroleum products to meet our energy demands. Every dollar we spend on these fossil fuels is a dollar that leaves Wisconsin. By increasing our state’s renewable portfolio standards, we are guaranteeing that more of our energy dollars remain here, and creating thousands of jobs for Wisconsin families in construction and building trades work, and, in the longer term, supply-chain jobs in our manufacturing, agricultural, and forestry sectors.

Also, the EPA has moved to regulate greenhouse gas emissions under the Clean Air Act, which means that costs associated with burning coal and natural gas will continue to rise. We cannot continue to pretend that exclusive reliance on fossil fuels for power generation is either sustainable or affordable in the long term. We need to speed our transition to a cleaner energy economy and position Wisconsin as a leader in this growing industry before other states get ahead of us.

As we add renewable sources of energy to our fleet, many of the older and less efficient fossil fuel burning units will gradually be retired, and Wisconsin’s generation capacity will fall in line with demand. Initial infrastructure costs associated with a transition to renewables will be off-set by producing cleaner and reliable renewable energy for Wisconsin over the long-term. Meanwhile, the cost of renewable generation technologies continues to fall when compared to fossil fuel alternatives.

Increased reliance on renewable energy is central to creating a more sustainable Wisconsin. Life cycle costs associated with fossil fuel have a significantly greater adverse impact on public health, quality of life, and the environment.

Advanced Renewable Tariffs
Q: Won’t Advanced Renewable Tariffs simply increase the cost of energy for everyone by subsidizing certain types of renewable technologies at a cost that is higher than the market would otherwise tolerate? Don’t Advanced Renewable Tariffs duplicate the efforts of the Renewable Portfolio Standard?

A: Evidence from around the world suggests that feed-in tariffs lead to faster deployment of renewable generation sources than a stand-alone Renewable Portfolio Standard. Advanced Renewable Tariffs will help harness the power of Wisconsin’s rich agricultural resources by making it easier and more cost-effective for farmers to take farm-waste and generate electricity with it to power their farming operations and deliver clean, renewable energy back to the grid.

Incenting the deployment of smaller-scale, more distributed renewable generation sources cuts down on our state’s transmission infrastructure costs and will reduce our reliance on out-of-state renewable power in the long term.

This policy helps level the playing field so individual homeowners, farmers, and businesses can earn a return on investments in renewable energy that is similar to the returns that utilities earn.