Letter writer asks Sen. Schultz to support Clean Energy Jobs Act

by | Mar 26, 2010 | Uncategorized

From a letter to State Senator Dale Schultz from Shelly Laffin, RENEW Wisconsin’s treasurer, who lives in Spring Green:

Dear Senator Schultz,

I recently learned from the Spring Green Home News that you do not support any provisions of the Clean Energy Jobs Act. Your district is distinctly suited to benefit from two parts of the Act in particular.

There are wind projects in Lafayette, Grant and Iowa counties that will be built if the Renewable Portfolio Standard is increased, especially with a mandated percentage of the energy projects to be built in Wisconsin. Wind projects in those counties not only will supply clean energy and jobs, but local towns and counties will receive annual payments. I am sure you know that the local economies in those areas are depressed and would materially benefit. Wind projects are good neighbors, which I’m also sure you are aware of, based on the ten year operating history of the Montfort Wind Farm in Iowa County.

Another critical provision in the Act is the Advanced Renewable Tariff component. While I see that you support tax credits for food processing plant modernization, you perhaps have not made the linkage to food processing waste and energy generation that many cheese plants would like to incorporate in their operations. Several cheese companies are considering anaerobic digestion for their plants (in your district), but cannot make the financial aspects work without an advanced renewable tariff as a standard offer. Grants are fine, but they work best to support technologies in initial stages of market development, rather than as a permanent feature to sustain a market. Preliminary analysis has been done on the cost of advanced renewable tariffs that could be offered by investor owned Wisconsin utilities (www.renewwisconsin.org). In offering approximately 11 cents per kilowatt hour, at a fully subscribed level of 1.5% of customer retail sales, the cost for a typical Wisconsin residential customer (~usage at 10,000 kilowatt hours per year) would average an extra 83 cents a month ($10.00 per year). The analysis uses the marginal amount that would be added to each investor owned utility’s current avoided cost. As the avoided cost rate continually increases over time, this marginal amount diminishes or disappears.

When I look at the Wisconsin State Capitol, the county courthouse in Lancaster and other early government projects, the investment in better building, better craftsmanship and better materials has stood the test of time. It is pitiful that we now exhibit such lack of vision that we cannot enthusiastically invest in Wisconsin’s future as our ancestors did. The two items I mentioned translate into local development, local jobs and local industry (ala Cuba City’s Wausaukee Composites – wind nacelle housings).

Wisconsin is currently the national leader in dairy farm digesters. The opportunity that comes from being a focal point in the country for anaerobic digestion technology will slip away, and has already begun to slip (federal digester funding targeted to New York state), without taking the next step – advanced renewable tariffs. The Focus on Energy Program has a very limited budget for renewables in general and this technology in particular. With a granting program, choices of winners and losers tend to be based on the program and state agency priorities, not necessarily the customer’s needs. DATCP does not have a RD&D budget to move farm digesters from being a large farm option to a viable mid-size farm option. Farms, in cooperation with investors, coops and using other business models could make the move themselves, with the assurance of an advanced renewable tariff. Wisconsin has already attracted the attention of German companies who would like to make investments in Wisconsin digester projects. And finally, Wisconsin is home to the company that has, by far, the most farm digester installations in the U.S. – GHD, Inc. in Chilton, Wisconsin. We would be crazy to forgo such a unique opportunity to support our agricultural community. I truly wish you could see it that way.

Another critical opportunity for Wisconsin is the promising mid-size wind industry. Several companies in eastern Wisconsin are obtaining UL listing for their equipment and are attracting investors to finance the building of small and mid-sized wind turbines in Wisconsin. Their chances of success improve greatly if there are buyback rates in Wisconsin to sustain consistent sales of wind equipment. Without the tariffs, Wisconsin is defaulting to wind turbines built in China. The industrial infrastructure is still in place that would make these companies viable, but the support of advanced renewable tariffs for small systems is critical.

The advanced renewable tariffs reward only equipment and projects that actually produce energy. As a contrast, grants are paid for projects whether they subsequently produce energy at the level promised, or do not. Higher buyback rates and tariffs do not pick and choose winners in the marketplace. They reward energy production – period. I fail to see why you would not support the advanced renewable tariff provision of the Clean Energy Jobs Act. The Wisconsin Distributed Resources Collaborative, with most of Wisconsin’s utilities as members, (www.wisconsindr.org) has investigated many options and administrative structures for advanced renewable tariffs over a range of cost recovery methods for utilities. Alliant Energy modeled its advanced renewable tariff offering (fully subscribed in less than a year) on tariff work done by the Wisconsin Distributed Resources Collaborative. By limiting tariff subscription levels and capping eligible project sizes, utilities and utility customers are protected from unmanageable financial impacts.

Wisconsin did not deregulate its retail electric utilities as did some other states in the 1990’s. Customer-based renewable electric projects are therefore restricted to selling energy to retail electric providers, at prices largely based on energy production from fully amortized coal plants. A variety of renewable energy businesses are in your district and will be able to thrive at a modest and controlled cost to utility customers. Small renewable companies in your district, such as Timmerman’s Talents, Platteville (solar and wind), point to the future growth and vigor that will be possible with support for renewable energy through an advanced tariff. There is no other energy policy on the horizon that would have more benefit for small growing renewable businesses.

I hope that you will reconsider your current position and support these two Clean Energy Jobs Act provisions.

Tomah school’s energy savings reach $92,000

by | Mar 25, 2010 | Uncategorized

From an article by John Froelich in the Tomah Journal:

The Tomah School District’s energy management program, which was inaugurated last fall, is paying off with an estimated $92,500 in savings.

Dave Stutzman, the district’s buildings and energy manager, gave a report of activities to the Tomah Board of Education Thursday evening. Stutzman said, “Our staff is making a difference on our energy bills.”

Stutzman, who was hired last August, said energy use was down nine percent across the board in November, close to the 10 percent annual reduction goal. He said the action plan and energy study “… are the roadmap for our future.”

The action plan was created in September. Staff building energy plans were initiated beginning in November.

Stutzman said there was a big reduction in the amount of therms used in November and December.

He had praise for Miller School which was “…consistently low” in energy use. ”The staff in that building are following best practices to the letter,” he said.

Behavioral modification — getting staff to close doors and shut off lights — is an important part of the process.

Melrose dairy modernizes with energy efficiency in mind

by | Mar 24, 2010 | Uncategorized

From a news release issued by Focus on Energy:

Madison, Wis. (March 24, 2010) – Focus on Energy, Wisconsin’s statewide program for energy efficiency and renewable energy, in partnership with Xcel Energy, awarded Pfaffs Prairie Dairy in Melrose $25,000 to install high-performance, energy-efficient equipment throughout the farm.

“I knew that I had to change something. Our stanchion barn was obsolete and if I didn’t modernize, I would have to get out of dairying,” said Tom Pfaff, owner of PfaffsPrairie Dairy. “I like the animals too much, and I wanted to be able to hand the farm over to my kids if they want to go into farming.”

With technical expertise and financial incentives from Focus and Xcel Energy, the Pfaffs builta new free-stall barn and installed high-velocity low speed (HVLS) fans, heat recovery, a water heater, a heat exchanger on the pipeline, and waterers. The equipment will save the dairy more than 188,000 kilowatt-hours of electricity and 10 kilowatts in demand reduction annually—enough energy to power 20 homes for a year. The farm will also benefit from an estimated $18,000 savings on its energy bills
each year.

“The free-stall design takes advantage of natural ventilation and the cows enjoy a constant supply of fresh air,” said Pfaff. “When we do need the fans, they can move the air and you don’t even know they are on.”

Case Builds for the Clean Energy Jobs Act Bills

by | Mar 23, 2010 | Uncategorized

From Wisconsin Renewable Quarterly, Spring 2010, the newsletter of RENEW Wisconsin:

After holding five public hearings on the Clean Energy Jobs Act (CEJA) legislation, the committees’ co-chairs signaled their plan to hammer out a set of substitute proposals in meetings among themselves.

While waiting for the expected substitute amendment sometime in late March, proponents continue to build the public case for passage in this legislative session.

The refashioned bill will likely retain the core provisions in the original, specifically:
+ 25% renewable energy standard(RES) by 2025;
+ 10% in-state renewable energy set-aside, also by 2025; and
+ Energy efficiency goals to begin reduction of consumption in 2011.

The original legislation (AB 649/SB 450) also contained a requirement that the Public Service Commission (PSC) increase buyback rates for small renewable systems. This controversial section is likely to be reworked substantially in the substitute amendment.

Since the introduction of the bills in early January, many affected interests have bombarded the print and electronic media with news releases, advertisements, economic analyses, news conferences, commentaries, and photo opportunities in hopes of influencing the Legislature before the session ends.

Just to list a few examples from the proponents:
+ RENEW Wisconsin released a study in February showing that increased renewable energy buyback rates, by themselves, would have a minimal impact on base residential electricity rates;

Other newsletter articles:
Tour Spotlights Homegrown Renewables
Energizing Fort Atkinson Schools
Clearing Up Lakes with Clean Energy
Of Molehills and Renewable Energy
Calendar

Grant will help develop small-farm manure digester

by | Mar 22, 2010 | Uncategorized

From an article by Chris Hubbuch in the La Crosse Tribune:

Wisconsin farmers have long known there’s money in manure, but extracting power was an option only for the biggest herds.

The state’s secretary of agriculture announced a $200,000 grant Friday to help a Tomah manufacturer develop a manure digester that could help small farms turn waste into electricity.

Though Wisconsin leads the nation in the agricultural use of anaerobic digesters, current technology — which requires on-site construction of concrete or steel structures — is best suited to farms with at least 1,000 animals.

USEMCO has developed a tank that makes it economical for farms with as few as 100 cows. The first model, which at peak production should generate enough electricity to power about 45 homes, will be tested on a 150-cow Chaseburg dairy.

Agriculture, Trade and Consumer Protection Secretary Rod Nilsestuen said small-farm digesters could bolster the state’s manufacturing and agriculture industries while promoting clean energy.

If the test is successful, USEMCO president Pat Rezin expects the demand for digesters could mean 15 to 20 new jobs and an addition to his Tomah plant.