Clean Energy Jobs Act bill includes low carbon fuel standard

From a question-and-answer summary of the Low Carbon Fuels Standard included in the Clean Energy Jobs Act bill written by Peter Taglia, Staff Scientist, for Clean Wisconsin:

The Clean Energy Jobs Act (SB 450 and AB 649), announced recently by Governor Doyle, has been introduced by both houses of the Wisconsin legislature. The bill incorporates many of the recommendations made by the governor’s Climate Change Task Force. The Clean Energy Jobs Act, if adopted, will increase Wisconsin’s use of renewable energy, energy efficiency, cleaner fuels and cleaner cars. The Low Carbon Fuel Standard (LCFS) in the bill would be established based on recommendations currently under development by a broad stakeholder group of the Midwestern Governors Association (MGA).

Below are a series of answers to frequently asked question about how an LCFS will impact biofuels and oil sands (compiled by Pete Taglia of Clean Wisconsin and member of the Midwestern Governors Association’s Low Carbon Fuel Standard Advisory Group). If you have questions about the LCFS you can contact Pete Taglia at ptaglia@cleanwisconsin.org.

Question: What is a Low Carbon Fuel Standard (LCFS)?

A LCFS is a fuel policy that will help break our dependence on foreign sources of oil and promote energy independence by gradually moving Wisconsin toward the cleanest and most efficient sources of transportation fuels. A LCFS rates different types of transportation fuels by their efficiency and carbon footprint and allows fuel providers to choose what mix of fuels will be used to meet the requirement.

Question: What types of fuels qualify for an LCFS?

An LCFS policy is unique in that all transportation fuels are able to compete in the fuel market, including the following resources:
• Ethanol: Alcohol fuel made from corn or cellulose (wood, plant stalks, harvest residues, etc.). Wisconsin has 8 corn ethanol plants producing almost 500 million gallons per year.
• Biodiesel: A diesel substitute (mono alkl ester) made from vegetable and animal oils that is then mixed with petroleum diesel (e.g., B20 is 20% biodiesel). Wisconsin has 8 biodiesel plants that use soybean oil, waste animal fats, and waste grease feedstocks.
• Renewable diesel: A fuel chemically similar to petroleum diesel (a hydrocarbon fuel) but made with renewable resources such as wood waste. Flambeau River Biofuels in Park Falls and New Page in Wisconsin Rapids both received Department of Energy grants to produce renewable diesel from wood waste.
• Compressed Natural Gas (CNG): Wisconsin has approximately 20 CNG fueling stations and two school district bus systems that use natural gas. ANGI Energy Systems of Milton is a leading manufacturer of CNG fueling systems and Wisconsin leads the nation in the production of biogas from dairy manure and food wastes.
• Electricity: Wisconsin has numerous electric vehicles and plug-in hybrid vehicles as part of state, utility and private car fleets. Wisconsin’s largest corporation, Johnson Controls, is a leading battery manufacturer that won a recent contract to supply batteries to Ford’s new electric van and Columbia Parcar of Reedsburg manufacturers a line of electric utility vehicles in WI.

Clean Energy Jobs Act bill includes low carbon fuel standard

From a question-and-answer summary of the Low Carbon Fuels Standard included in the Clean Energy Jobs Act bill written by Peter Taglia, Staff Scientist, for Clean Wisconsin:

The Clean Energy Jobs Act (SB 450 and AB 649), announced recently by Governor Doyle, has been introduced by both houses of the Wisconsin legislature. The bill incorporates many of the recommendations made by the governor’s Climate Change Task Force. The Clean Energy Jobs Act, if adopted, will increase Wisconsin’s use of renewable energy, energy efficiency, cleaner fuels and cleaner cars. The Low Carbon Fuel Standard (LCFS) in the bill would be established based on recommendations currently under development by a broad stakeholder group of the Midwestern Governors Association (MGA).

Below are a series of answers to frequently asked question about how an LCFS will impact biofuels and oil sands (compiled by Pete Taglia of Clean Wisconsin and member of the Midwestern Governors Association’s Low Carbon Fuel Standard Advisory Group). If you have questions about the LCFS you can contact Pete Taglia at ptaglia@cleanwisconsin.org.

Question: What is a Low Carbon Fuel Standard (LCFS)?

A LCFS is a fuel policy that will help break our dependence on foreign sources of oil and promote energy independence by gradually moving Wisconsin toward the cleanest and most efficient sources of transportation fuels. A LCFS rates different types of transportation fuels by their efficiency and carbon footprint and allows fuel providers to choose what mix of fuels will be used to meet the requirement.

Question: What types of fuels qualify for an LCFS?

An LCFS policy is unique in that all transportation fuels are able to compete in the fuel market, including the following resources:
• Ethanol: Alcohol fuel made from corn or cellulose (wood, plant stalks, harvest residues, etc.). Wisconsin has 8 corn ethanol plants producing almost 500 million gallons per year.
• Biodiesel: A diesel substitute (mono alkl ester) made from vegetable and animal oils that is then mixed with petroleum diesel (e.g., B20 is 20% biodiesel). Wisconsin has 8 biodiesel plants that use soybean oil, waste animal fats, and waste grease feedstocks.
• Renewable diesel: A fuel chemically similar to petroleum diesel (a hydrocarbon fuel) but made with renewable resources such as wood waste. Flambeau River Biofuels in Park Falls and New Page in Wisconsin Rapids both received Department of Energy grants to produce renewable diesel from wood waste.
• Compressed Natural Gas (CNG): Wisconsin has approximately 20 CNG fueling stations and two school district bus systems that use natural gas. ANGI Energy Systems of Milton is a leading manufacturer of CNG fueling systems and Wisconsin leads the nation in the production of biogas from dairy manure and food wastes.
• Electricity: Wisconsin has numerous electric vehicles and plug-in hybrid vehicles as part of state, utility and private car fleets. Wisconsin’s largest corporation, Johnson Controls, is a leading battery manufacturer that won a recent contract to supply batteries to Ford’s new electric van and Columbia Parcar of Reedsburg manufacturers a line of electric utility vehicles in WI.

Point renewable installer testifies in support of Clean Energy Jobs Act bill

Point renewable installer testifies in support of Clean Energy Jobs Act bill

Josh Stolzenburg (center), owner of North Wind Renewable Energy, LLC, Stevens Point, joined Michael Vickerman (left) and Dave Miller, Wave Wind, LLC, Sun Prairie, in testifying 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.

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.

Energy bill reflects science, consensus

From a letter by Rob Nelson to the editor of the Baraboo News Republic:

If anyone is guilty of espousing “ideology, not reality,” and taking a stand based on “politics rather than science or economics,” it is clearly Rep. Jeff Fitzgerald in his recent column attacking the legislature’s Clean Energy Jobs Act (AB-649).

The bill is based largely on the 2008 report by the Governor’s Task Force on Global Warming. After 14 months of research, discussion, and compromise, this diverse group suggested more than 60 wide-ranging policy recommendations in order to enhance Wisconsin’s energy independence and reduce our state’s greenhouse gas emissions.

Reflecting an extraordinary amount of consensus, 26 members of the Task Force ultimately endorsed the entire document, while three members objected to individual components of the plan.

Keep in mind that this was no mere collection of tree-huggers: The 29 members of the Task Force included representatives from six utilities (MGE, We Energies, Alliant, Xcel Energy, WPPI, and Integrys Energy Group); two of the state’s largest unions (International Brotherhood of Electrical Workers, United Steel Workers); several of Wisconsin’s most prominent manufacturers (Ariens, SC Johnson, General Motors, NewPage, General Electric, and Plum Creek Timber); plus the Dairy Business Association, the Wisconsin Federation of Cooperatives, and a Democratic senator.

A member of Mr. Fitzgerald’s own party, Rep. Phil Montgomery, (R-Ashwaubenon) was included in this bi-partisan effort and agreed with the Task Force’s recommendations.

Not all of the steps outlined by the Task Force are found in the Clean Energy Jobs Act, but many are, including:

— enhancing statewide energy efficiency and weatherization programs;

— requiring that 25 percent of Wisconsin’s energy come from renewable source by 2025;

— offering incentives for producers of agricultural energy crops;

— promoting carbon sequestration in Wisconsin forests; and

— a guarantee that utilities purchase electricity from small-scale generators at fair, reliable prices.

The Wisconsin Office of Energy Independence estimates the Green Energy Jobs Act “will create a minimum of 15,000 new jobs for Wisconsin by 2025, and more than 1,800 of those jobs will be realized in the first year.”