Outagamie Co. farmer: Clean energy bill's opponents lack perspective

From a guest column in The Country Today by Rick Adamski, an organic dairy farmer near Seymour:

As a dairy farmer, I understand that wise investments reduce operating costs. On our farm we have seen the need to save energy as a means to flourish in a changing economy.

The state needs to learn this lesson. We can create opportunities in rural Wisconsin to become net energy producers through some common-sense policies such as the advanced renewable portfolio standard, the low-carbon fuel standard and the Energy Crop Reserve Program, three policies being considered in the Clean Energy Jobs Act (Assembly Bill 649 and Senate Bill 450). All of these policies encourage adoption of more renewable energy sources and open up a market for Wisconsin farmers.

But I especially want to emphasize the importance of another common-sense policy being considered: advanced renewable tariffs.

Advanced renewable tariffs are essentially a statewide, uniform buyback rate for renewable energy that is fed into the grid. Locally owned, small-scale energy systems won’t happen without these tariffs. Individuals need to know how much they will be paid for their energy before they invest.

I was fortunate to have had a We Energies experimental small wind buyback rate, which allowed me to build a wind turbine on our farm. It is unfortunate that there are people across the state with better wind resources than ours but worse buyback rates that keep them from producing renewable energy and earning a return. We need this bill to allow entrepreneurs to have fair access, no matter what utility they have.

While it seems an advanced renewable tariff is just common sense, some interests are actively trying to defeat this policy. Perspective is a quality that seems to be absent in so many political debates today, and the debate around the Clean Energy Jobs Act is no exception. It sure seems to me like the critics of this bill have a different understanding of the past or a lack of memory of the past.

At the basis of their argument is their belief that fossil fuels are cheap and will always be cheap. Both of those beliefs are wrong. We forget we are subsidizing fossil fuels. In the case of coal, currently 10 percent of the gross production is exempt from taxation. That is hardly a market-driven force.

Elk Mound Dairy featured in "Farm Energy Success Stories"

From a news release issued by the Environmental Law & Policy Center:

A new report from the Environmental Law & Policy Center (ELPC) demonstrates how farmers and rural small businesses are making clean energy the newest cash crop. From a Pennsylvania syrup maker that cut its energy costs in half, to an Illinois dairy that generates electricity frommanure (using a Wisconsin company’s technology), to a Montana brewery that taps solar power, clean energy is improving the bottom line for rural America.

Farm Energy Success Stories highlights clean energy projects made possible with grants and loan guarantees from the Farm Bill’s Rural Energy for America Program (REAP). The report cover highlights a Wisconsin solar project in Burlington, Wisconsin and another Wisconsin solar project in Oak Creek is highlighted as a Success Story. A previous report highlighted the manure digester at Five Star Dairy in Elk Mound.

Wisconsin has benefitted from this federal program due to our clean energy leadership, as other states struggle to compete. Wisconsin farmers and rural small businesses have received over $15 million (third highest) in funding under the program, with most awards being for manure digesters, helping to make Wisconsin the national leader for (planned) farm digester development.

However, even with REAP funding, many of these digesters have not yet been built because Wisconsin’s farmers often have trouble getting a fair deal from utilities for their clean “cow power.” The Clean Energy Jobs Act — as currently drafted prior to weakening amendments — would change that by providing fair Advanced Renewable Tariffs (a.k.a. “renewable energy buyback rates”) for farm energy projects statewide.

“With the help of farmers, ranchers and rural small businesses, America and Wisconsin can make great strides toward solving our energy problems.” said Andy Olsen, Senior Policy Advocate for ELPC. “A strong Clean Energy Jobs Act can also create rural economic development, energy independence and a cleaner environment one farm at a time.”

We Energies files application for biomass plant

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

Seeking to expand its renewable power portfolio beyond wind farms, We Energies on Monday filed an application with state regulators to build a $255 million biomass power plant near Wausau.

The project would supply steam to Domtar Corp.’s paper mill in Rothschild and create up to 150 jobs, the utility said in its application to the state Public Service Commission.

The 50-megawatt power plant would generate enough power to supply 40,000 typical homes, We Energies said.

We Energies, which announced the project last fall, said it would like the Public Service Commission to rule on the project by year-end to help it stay on a timeline aimed at the project qualifying for a 30% federal tax credit.

Qualifying for the tax credit would enable the project’s cost for the utility and We Energies ratepayers be cheaper, said Brian Manthey, utility spokesman. If the tax credit is available, We Energies projects the project would raise customers’ rates by 1% to 1.25%, he said.

It’s unclear what the actual dollar impact of the project would be for ratepayers, but at today’s rates it would be roughly $1 a month for the typical residential customer.

Construction would start next year and last for about 30 months. The project is expected to create about 400 temporary construction jobs in addition to jobs at the power plant and in the logging and forestry sector.

PSC: Clean energy naysayers have it wrong

From a letter to the Wisconsin legislature from Public Service Commission (PSC) Chair Eric Callisto:

Yesterday [March 12, 2010], several interest groups wrote legislators urging opposition to the Clean Energy Jobs Act. The groups warned that the cost of renewable energy standards and enhanced energy efficiency programs would be “enonnous” and the benefits only “nominal.” Once again, the clean energy naysayers have it wrong. Enhanced renewable portfolio standards and increasing our efforts in energy efficiency reduce our dependence on imported energy, keep more of our energy dollars here at home, and help to ensure that Wisconsin and our country is competitive in the global energy economy.

You should know that the memo from clean energy opponents includes some key factual errors.

In particular, it claims that enhanced energy efficiency programs will add $700 million in new costs for consumers, citing a report by the Energy Center of Wisconsin (ECW). In reality, we will save money on our energy bills the IOOre we do on energy efficiency. It is common sense — the less energy we consume, the less we pay on our utility bills.

As for the ECW report, what it actually concludes is that Wisconsin consumers will save $900 million per year in energy costs if we invest between $350 and $400 million in energy efficiency programs; and if we invest roughly $700 million in energy efficiency. Wisconsin consumers will save $2 billion per year in energy costs. . . . Incidentally, ECW also found that enhancing our energy efficiency programs would support between 7000 and 9000 new jobs. The
bottom line is that if we don’t invest in energy efficiency, we will be spending significantly more on new generation.

The memo also claims that meeting a 25 percent renewable portfolio standard will add more than $15 billion in extra costs for consumers. Increasing our renewable energy portfolio can reduce Wisconsin energy costs in the long run, particularly when implemented alongside enhanced energy efficiency programs – as the Clean Energy Jobs Act envisions. The enclosed, recent Public Service Commission analysis, confirms that.

PSC: Clean energy naysayers have it wrong

From a letter to the Wisconsin legislature from Public Service Commission (PSC) Chair Eric Callisto:

Yesterday [March 12, 2010], several interest groups wrote legislators urging opposition to the Clean Energy Jobs Act. The groups warned that the cost of renewable energy standards and enhanced energy efficiency programs would be “enonnous” and the benefits only “nominal.” Once again, the clean energy naysayers have it wrong. Enhanced renewable portfolio standards and increasing our efforts in energy efficiency reduce our dependence on imported energy, keep more of our energy dollars here at home, and help to ensure that Wisconsin and our country is competitive in the global energy economy.

You should know that the memo from clean energy opponents includes some key factual errors.

In particular, it claims that enhanced energy efficiency programs will add $700 million in new costs for consumers, citing a report by the Energy Center of Wisconsin (ECW). In reality, we will save money on our energy bills the IOOre we do on energy efficiency. It is common sense — the less energy we consume, the less we pay on our utility bills.

As for the ECW report, what it actually concludes is that Wisconsin consumers will save $900 million per year in energy costs if we invest between $350 and $400 million in energy efficiency programs; and if we invest roughly $700 million in energy efficiency. Wisconsin consumers will save $2 billion per year in energy costs. . . . Incidentally, ECW also found that enhancing our energy efficiency programs would support between 7000 and 9000 new jobs. The bottom line is that if we don’t invest in energy efficiency, we will be spending significantly more on new generation.

The memo also claims that meeting a 25 percent renewable portfolio standard will add more than $15 billion in extra costs for consumers. Increasing our renewable energy portfolio can reduce Wisconsin energy costs in the long run, particularly when implemented alongside enhanced energy efficiency programs – as the Clean Energy Jobs Act envisions. The enclosed, recent Public Service Commission analysis, confirms that.