Landowners and municipalities to reap millions from wind farm operations for 2010

For immediate release
January 10, 2011

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RENEW Wisconsin
Michael Vickerman
608.255.4044
mvickerman@renewwisconsin.org

Landowners and Municipalities to Reap Millions from Wind Farm Operations for 2010

Owners of Wisconsin’s four largest wind energy projects will pay out approximately $2.8 million in rent to landowners hosting turbines and payments in lieu of taxes to local governments for 2010, according to figures compiled by RENEW Wisconsin, a statewide renewable energy advocacy organization.

Wind energy developers negotiate lease agreements with landowners to host turbines on their property. Payments can be as high as $7,000 per turbine per year. Estimated rental payments to all Fond du Lac and Dodge county landowners will total slightly more than $1.2 million in 2010.

Towns and counties do not collect property taxes from wind turbines but instead receive payments based on the generating capacity of each turbine, allocated under a formula adopted by the Legislature in 2003. Payments to those local governments will reach almost $1.6 million for 2010.

“These revenues help support farm families and rural Wisconsin communities.” said Michael Vickerman, executive director of RENEW Wisconsin. “It’s a much better deal for the state than sending dollars to Wyoming and West Virginia for the coal imported to Wisconsin to generate electricity.”

Gary Haltaufderheide, an employee of Madison-based Land Services Company, which negotiates land leases for large projects, like pipelines and wind turbines, says, “Farmers are smart business people and they’re very satisfied with the payments. One farmer saw the lease as a way to cover tuition payments for a child entering college.”

Four wind projects – Forward, Blue Sky Green Field, Cedar Ridge, and Butler Ridge – account for the payments to host landowners and local governments. Together these projects comprise nearly 90 percent of Wisconsin’s wind generation fleet.

When calculated over a 20-year contract period, total revenues should exceed $60 million, taking inflation into account.

Shirley Wind, the state’s newest wind power installation, will contributed another $80,000 a year, divided equally between Brown County, Town of Glenmore, local landowners, and neighbors within one-third of a mile of a turbine. The eight-turbine, 20-megawatt project began producing electricity in 2010.

Data tables

Rapids aims to be green jobs 'epicenter'

From an article by Nathanial Shuda in the Stevens Point Journal:

Leaders of a Wisconsin Rapids-based company planning to build a wind-energy components plant hope the project will invigorate local growth and revolutionize the industry.

On Tuesday, Wisconsin Rapids agreed to sell 54 acres of undeveloped land in the Rapids East Commerce Center to Energy Composites Corp., the parent company of Advanced Fiberglass Technologies. Company leaders, who announced plans March 31 to build a 350,000-square-foot facility, want to break ground on the project by the end of July. The plant, which will produce blades for wind turbines, is expected to add at least 400 local jobs.

“I am confident Wisconsin Rapids will be the epicenter of ‘green’ jobs and the wind-energy sector in Wisconsin,” said Energy Composites President Jamie Mancl, a Wisconsin Rapids native.

Other wind-energy companies and potential customers from around the globe already have expressed interest in Energy Composites’ future products and the training models it’s designing, said Sam Fairchild, the company’s chief executive officer. Officials continue to work with Mid-State Technical College and accreditation agencies to develop a global training standard for the industry.

Within the next several years, the need for alternative energy will expand and the Midwest provides the ideal location, with easy access and close proximity to the Great Lakes, Fairchild said.

Meeting set to discuss possible wind turbine along lakefront

From a letter to the editor by Matt Howard, a new resident of Bay View, as well as the Environmental Sustainability Director for the City of Milwaukee, in the Bay View Compass:

My name is Matt Howard, a new resident of Bay View, as well as the Environmental Sustainability Director for the City of Milwaukee. My office is exploring the feasibility of constructing a wind turbine in Bay View on Port property to supply the Port with clean, renewable energy. I wanted to give you some basic information on the options we’re exploring so that we as a community will have a more fruitful discussion next Thursday evening. (Thanks to Ald. Zielinski for organizing this meeting on my behalf.)

The purchase and construction of this turbine would be fully paid for through federal grant funds my office administers, as well as potential incentive contributions from Focus on Energy and We Energies. The federal grant can only be used for energy saving and renewable energy projects. We are looking at two possible site options on city-owned land near the lakefront: next to the Port Administration building at 2323 S. Lincoln Memorial Drive and next to the Lake Express Ferry terminal building. These sites are at the top of our list because (1) they are high visibility sites and thus could be a bold demonstration of the City’s commitment to renewable energy, (2) are somewhat removed from residences, and (3) just as importantly, the wind profile at these sites is among the best in the region.

The wind turbine options we are exploring are commercial scale (not utility scale) and, as a result, could range in total height from 115 ft to 156 ft, are 20 kW to 100 kW systems, and would generally be free from the noise and vibration associated with older, larger wind turbines. This is less than half the height of the utility scale turbines you may have seen in Fond du Lac County. Both wind turbines under consideration are made in the USA. We are diligently running economic analysis to ensure we wisely spend tax payer dollars.

New wind siting rules could speed wind project in southwestern Wisconsin

From an article by Craig D. Reber in The Herald, Dubuque, Iowa:

A wind-siting rule that took effect in Wisconsin on Jan. 1* could open the door to wind farms in southwest Wisconsin.

The rule provides a path for obtaining a permit to build a wind farm — as long as the project developers abide by the guidelines established by the state Public Service Commission. If a township or other municipality opts to regulate a wind-energy power system, its

ordinances can’t be more restrictive than the PSC’s rules.

Basically, the PSC’s rules trump any local ordinances.

In southwest Wisconsin, the new rule could pave the way for the development of the proposed White Oak wind project by Wind Capital Group that includes parts of Smel-ser, Hazel Green and Paris townships. The project has been on hold for more than two years.

“We believe that passage of the PSC’s rule will certainly set the conditions in place that make development of wind facilities much more possible in Wisconsin,” said Tom Green, Wind Capital senior manager of project development. “In reviewing the new rule and applying those rules to their plans for White Oak, they will have a better idea moving into Advertisement

the future of the viability of the project.”

Ron Brisbois, Grant County Economic Development director, said the new law will allow communities to plan and give wind developers the freedom to create wind-farm strategies.

“That was what everybody was waiting on,” Brisbois said of the White Oak project and another in northern Grant County. “This should allow them to move forward to secure financing and implement the design of the full layout of where the turbines will go.”

“It’s important,” said Joe Alt, of rural Cuba City and a participant in the White Oak project, discussing the new rule. “It’s definitely going to help get a wind farm going.”

* At the time the reporter wrote the story, January 1 appeared to be the effective date of the new rules. However, simple logistical delays in officially publishing the rule push the effective date to March 1.

Grant program passed, thousands of renewable energy jobs saved

From an article in Renewable Energy World:

Washington, D.C. — In typical fashion, the U.S. Congress passed a suite of last-minute tax laws last night, including an extension of the Treasury Grant Program (TGP) for renewable energy project developers.

Trade groups in Washington have been pushing hard for an extension of the program, which provides a cash payment of up to 30% of equipment costs in place of the Investment Tax Credit. The grant program was responsible for a large portion of the renewable energy projects built throughout the U.S. in 2010. Originally passed as part of the 2009 stimulus package, the TGP was supposed to expire at the end of December.

Because there are still a limited number of financial institutions able to finance projects by taking advantage of tax credits, the TGP has opened up new sources of capital for project developers. According to the Solar Energy Industries Association (SEIA), the grant program spurred over 1,100 solar projects and $18 billion dollars of investment in 2010.

“This program has successfully created thousands of jobs and opportunity in all 50 states for construction workers, electricians, plumbers, contractors that have struggled in this harsh economic climate,” said SEIA President Rhone Resch in a statement.

While the wind industry saw a significant drop in installations compared to 2009, the grant program helped keep thousands of MW on the table for 2010 and 2011. American Wind Energy Association CEO Denise Bode projected a loss of tens of thousands of wind jobs in 2011 without an extension of the TGP.