Urge Congress to extend credit for renewable energy

An editorial from the Wisconsin State Journal:

America’s effort to develop cleaner, more sustainable energy sources is threatened by the looming expiration of federal tax credits that boost renewable energy production and use.

Congress should respond this month by extending and enhancing the credits, which encourage investment in solar, wind, biomass and other renewable power sources.

A significant risk exists that at the end of this year Congress will let credits worth $500 million a year lapse, as it did three previous times. In those cases, investment in renewables fell dramatically before Congress revived the credits. Investment in wind power production, for example, fell 93 percent following the expiration of tax credits in 2000.

This year the vast majority in Congress supports extending the credits, available to homeowners, businesses and investors for buying equipment to use or produce renewable energy. But legislation extending and improving the credits is stalled by a dispute over what to do about the impact on the federal budget deficit.

The credits are part of a larger package of tax breaks scheduled to expire at the end of the year. Extending the breaks would cost the treasury $50 billion over 10 years.

Plans call for Congress to offset the lost revenue by raising fees or taxes or by cutting other programs.

Many senators and representatives are balking at the offsets.

Congress deserves praise for making sure the credits do not exacerbate the already-enormous budget deficits. But its members should also recognize the value the renewable energy tax credits have to an economy weighed down by the high cost of fossil fuels and to an environment threatened by pollution from burning fossil fuels.

With Congress scheduled to adjourn for the year at the end of this month, it’s time for its members to compromise on a package of tax credits that can be offset with reasonable fee or tax increases and program cuts.

Wisconsin has much at stake. The state has great potential to become a national leader in renewable energy.

Tax credits spur the industry by making it more cost-effective to invest in equipment to use renewable energy in homes or businesses. The credits also make it more cost-effective to invest in starting or expanding renewable energy production plants.

Allowing the credits to expire would be a setback with costly consequences.

Wisconsin’s congressional delegation should help engineer a resolution that extends the credits without enlarging the budget deficit.

The American Wind Energy Association makes it easy to contact your U.S. representatives and senators, through a page dedicated to urging members of Congress to act.

Oak Creek plant settlement includes renewable energy commitments

From a story posted on the Web site of The Business Journal of Milwaukee:

The three owners of the Elm Road Generating Station in Oak Creek will pay $105 million over a 25-year period for Lake Michigan protection projects to end a three- year legal battle over the water intake structure at the power plant, Clean Wisconsin and the Sierra Club said Wednesday.

Clean Wisconsin and the Sierra Club filed suit after the Wisconsin Department of Natural Resources issued a permit allowing the use of a once-through cooling system at the coal-fired power plant. The organizations claimed that once-through cooling did not represent the best available technology for cooling the plant and thus should not be permitted.

Under the settlement, the three utilities that own the generating station — We Energies of Milwaukee, Madison Gas & Electric of Madison and Wisconsin Public Power Inc. of Sun Prairie — agreed to the following:

– Funding $4 million per year from 2010 through 2035 for projects to address water quality issues in Lake Michigan such as invasive species, polluted runoff, toxic loadings, and habitat destruction;

– Purchase or construct 15 megawatts of solar generation by Jan. 1, 2015; and

– Support legislative efforts to establish a renewable energy portfolio standard of 10 percent by 2013 and 25 percent by 2025.

We Energies will also retire two coal-fired units in Presque Isle, Michigan and ask the Public Service Commission of Wisconsin for approval to construct 50 megawatts of 100 percent biomass-fueled power in Wisconsin.

In a media release, Mark Redsten, Exeuctive Director, of Clean Wisconsin said:

“We’re happy to have reached an agreement that has significant benefits for both the lake and the fight against global warming. These environmental protections help ensure Lake Michigan is a healthy natural resource for generations to come.”

From a separate release issed by the Sierra Club:

“In the long run, this agreement will result in dramatic improvements to the overall health of Lake Michigan and will contribute to the development of renewable energy sources such as solar and biomass,” said Jennifer Feyerherm, Wisconsin Clean Energy Campaign Director.

“It will help us address two of the most critical issues of our time—climate change and protection of one of the world’s greatest freshwater natural resources.”

Wisconsin must seize the green opportunity

From an editorial in the Milwaukee Journal Sentinel:

One of the objections to seriously addressing global warming is the cost. Some critics argue that curbing U.S. greenhouse gas emissions will bankrupt companies, create an unreliable electricity network, drive families into the poorhouse and generally ruin the economy.

There is no doubt that there will be a cost and that some sacrifice will be required. And it’s true that many Americans today don’t handle sacrifice very well. But the evidence produced by a United Nations panel and other scientists leaves little doubt about the reality and the seriousness of the threat, a threat that both presidential candidates appear to have taken to heart, unlike the current occupant of the White House.

But there is also an opportunity here to create a new economy that provides jobs at the same time that it reduces emissions and reliance on fossil fuels, a significant portion of which come from a volatile part of the planet. And if the country acts now to create that economy, it would be ahead of the curve and could take the international lead in providing a brighter future for the planet.

The opportunity lies in creating more green jobs – many of which people already know how to do – to use energy more efficiently and build the technologies that, from biofuels to wind turbines, could curb climate change.

That economy is in the process of being created, and among the builders are key companies in southeastern Wisconsin, such as Johnson Controls in Milwaukee, which has been doing excellent business in energy efficiency. Green jobs were the subject of recent conferences in Milwaukee and at Racine’s Wingspread conference center. Nationally, the Blue Green Alliance – a joint venture of the United Steelworkers and the Sierra Club – is campaigning for green jobs and energy independence.

We hesitate to use the New Age concept of harmonic convergence, but something does seem to be happening across the country at a number of levels.

Even more of the same is needed.

Among the immediate priorities:

• Congress needs to pass this year the Renewable Energy and Job Creation Act of 2008. The bill would extend federal tax incentives for energy efficiency and renewable energy technologies that have expired or will expire at the end of the year.

In a recent meeting with the Editorial Board, representatives of the Blue Green Alliance said that 100,000 jobs could be lost at the end of the year if the tax incentives and credits aren’t extended. The bill would extend for another eight years investment tax credits for installing solar energy and would extend for one year the production tax credit for producing wind power. It also would extend for three years credits for geothermal, wave energy and other renewables.

• Federal renewable energy standards should be stepped up. In Wisconsin, the Governor’s Task Force on Global Warming has recommended a series of measures aimed at reducing greenhouse gas emissions by 22% by 2022 and 75% by 2050. Those are reasonable goals, but the closer the nation can come to Al Gore’s 10-year goal of producing all electricity from sources that don’t produce greenhouse gases, the better off it will be.

• The federal government needs to set a clear cost for carbon emissions, either by taxing such emissions directly or establishing a cap-and-trade system that would cap emissions and reduce them over time by allowing parties to trade in emission credits. Such a system was proposed by the governor’s task force. Whether such a system is better than a straight tax on emissions deserves a thorough debate, but, either way, affected industries need stability on the regulatory front.

• Governments at all levels need to do a better job of promoting and encouraging businesses that produce green jobs.

Wisconsin must seize the green opportunity

From an editorial in the Milwaukee Journal Sentinel:

One of the objections to seriously addressing global warming is the cost. Some critics argue that curbing U.S. greenhouse gas emissions will bankrupt companies, create an unreliable electricity network, drive families into the poorhouse and generally ruin the economy.

There is no doubt that there will be a cost and that some sacrifice will be required. And it’s true that many Americans today don’t handle sacrifice very well. But the evidence produced by a United Nations panel and other scientists leaves little doubt about the reality and the seriousness of the threat, a threat that both presidential candidates appear to have taken to heart, unlike the current occupant of the White House.

But there is also an opportunity here to create a new economy that provides jobs at the same time that it reduces emissions and reliance on fossil fuels, a significant portion of which come from a volatile part of the planet. And if the country acts now to create that economy, it would be ahead of the curve and could take the international lead in providing a brighter future for the planet.

The opportunity lies in creating more green jobs – many of which people already know how to do – to use energy more efficiently and build the technologies that, from biofuels to wind turbines, could curb climate change.

That economy is in the process of being created, and among the builders are key companies in southeastern Wisconsin, such as Johnson Controls in Milwaukee, which has been doing excellent business in energy efficiency. Green jobs were the subject of recent conferences in Milwaukee and at Racine’s Wingspread conference center. Nationally, the Blue Green Alliance – a joint venture of the United Steelworkers and the Sierra Club – is campaigning for green jobs and energy independence.

We hesitate to use the New Age concept of harmonic convergence, but something does seem to be happening across the country at a number of levels.

Even more of the same is needed.

Among the immediate priorities:

• Congress needs to pass this year the Renewable Energy and Job Creation Act of 2008. The bill would extend federal tax incentives for energy efficiency and renewable energy technologies that have expired or will expire at the end of the year.

In a recent meeting with the Editorial Board, representatives of the Blue Green Alliance said that 100,000 jobs could be lost at the end of the year if the tax incentives and credits aren’t extended. The bill would extend for another eight years investment tax credits for installing solar energy and would extend for one year the production tax credit for producing wind power. It also would extend for three years credits for geothermal, wave energy and other renewables.

• Federal renewable energy standards should be stepped up. In Wisconsin, the Governor’s Task Force on Global Warming has recommended a series of measures aimed at reducing greenhouse gas emissions by 22% by 2022 and 75% by 2050. Those are reasonable goals, but the closer the nation can come to Al Gore’s 10-year goal of producing all electricity from sources that don’t produce greenhouse gases, the better off it will be.

• The federal government needs to set a clear cost for carbon emissions, either by taxing such emissions directly or establishing a cap-and-trade system that would cap emissions and reduce them over time by allowing parties to trade in emission credits. Such a system was proposed by the governor’s task force. Whether such a system is better than a straight tax on emissions deserves a thorough debate, but, either way, affected industries need stability on the regulatory front.

• Governments at all levels need to do a better job of promoting and encouraging businesses that produce green jobs.

RENEW Wisconsin Comments on Comprehensive Strawman Proposal for Governor Doyle’s Global Warming Task Force

From a statement on behalf of RENEW Wisconsin submitted by Michael Vickerman to the Governor’s Global Warming Task Force:

These comments, submitted on behalf of RENEW Wisconsin, address the strawman proposal developed by the co-chairs of Governor Doyle’s Global Warming Task Force. I represented RENEW in the Electric Generation and Supply Workgroup and took part in the drafting and preparing of several specific proposals that were submitted to the full Task Force. Among them were proposals to establish (1) uniform permitting standards for wind projects, (2) fixed-rate production-cost-based tariffs to stimulate customer-sited renewable energy systems; and (3) post-2015 renewable energy requirements on utilities. The comments address various proposed changes to the existing renewable energy standard (RES). . . .