Advancing wi cleanenergyfuture_sierraclub

Advancing Wisconsin’s Clean Energy Future

Sierra Club – John Muir Chapter222 South Hamilton St, #1, Madison, WI 53703

(608) 256-0565http://[email protected]

What Renewable Energy Policies Does WI need to Move Forward?

Enhanced Renewable Portfolio Standards: 25% by 2025, 12.5% from WI; Do we want a solar carve out? MW goal?

Net metering / fair buyback rates: customers feed electricity they generate into grid; credited at wholesale rate; sell excess

Bottomlands leasing: Lake MI; needed to move offshore wind forward. Potential Republican interest; language needed.

PACE revival: Spreads out cost of solar or EE investments. Not property tax based (due to Frannie/Freddie debacle), but billed from utilities / electric cooperatives.

Photo by Bob Nichols, USDA NRCS

Enhanced Renewable Portfolio Standard

• Currently 10% of all retail electric sales in Wisconsin must be derived from renewable resources by 2015.

• An Enhanced RPS would amend the current RPS by moving the 10% requirement ahead from 2015 to 2013 and providing that 20% of all electric sales in Wisconsin would be derived from renewable resources by 2020 and 25% by 2025, including 12.5% from in-state renewable resources by 2025.

Wisconsin Lags Behind Other States with Renewable Energy Standards

• Thirty states have a renewable portfolio standard.• MN and IL have already committed

to 25% renewable energy by 2025. • In 2009, wind power will account for 15% of all

electricity generated in Iowa.• The following states, ranked by RPS percentage

then date, have a mandatory RPS percentage (Iowa and Texas have a megawatt goal):

Maine: 40% by 2017 Oregon: 25% by 2025 Montana: 15% by 2015Hawaii: 40% by 2030 Vermont: 25% by 2025 Massachusetts: 15% by 2020California: 33% by 2020 West Virginia: 25% by 2025 Washington: 15% by 2020 Connecticut: 27% by 2020 New Jersey: 22.5% by 2021 Missouri: 15% by 2021New York: 25% by 2013 Delaware: 20% by 2019 Arizona: 15% by 2025 Illinois: 25% by 2025 Colorado: 20% by 2020 North Carolina: 12.5% by 2021 Minnesota: 25% by 2025 New Mexico: 20% by 2020 Michigan: 10% by 2015New Hampshire: 25% by 2025 Maryland: 20% by 2022 Wisconsin: 10% by 2015Nevada: 25% by 2025 Pennsylvania: 18% by 2020Ohio: 25% by 2025 Rhode Island: 16% by 2020

Sources: Pew Center on Global Climate Change, Renewable Portfolio Standards, December 14, 2009; North American Windpower, April 15, 2009. Windfall for Green Energy In Iowa.

Wisconsin is Lagging Behind Our Neighbors in Wind Energy

A Strong RPS with In-State Preferences Spurs In-State Wind Development

PA

OH

NY

0

WI

WA

TX

RI

OR

98765

2,500

2,000

1,500

1,000NM

NJNH NV

MT

494321

DC

DE CT

CO

CA

MO

MN

MAMDAZ

ME

IA

IL

HI0

2010 RPSTarget (TWhs)

-1

500

3,000

-1,000

9,500

-500

Megawatts of Wind

RPS with in-state preference

RPS

Sources: AWEA Website – megawatts installed or under construction as of 6/27/09; EDPR NA Analysis

Strength of RPS

Outlier states with greater wind resources or access to regional RPS markets

In-State WindDevelopment

Illinois has a comparable wind resource and 2010 REC demand as Wisconsin, but its in-

state requirement has contributed to four times the installed wind capacity

Outlier states with difficult development environments and/or

that allow regional resources to qualify for RPS

An Enhanced RPS Will Encourage Jobs and Investment in Wisconsin

• A 2009 report by the Blue Green Alliance concludes that Wisconsin could have over 35,000 new jobs by 2025 in the manufacturing sector alone as a result of an enhanced renewable portfolio standard.

• The New North, an eighteen-county partnership in northeastern Wisconsin, has compiled a Wind Works Supply Chain Directory, with links to over 200 Wisconsin companies providing products and services to the wind industry.

• A report by the National Renewable Energy Laboratory shows that 1,000 MW of new wind development in Wisconsin would create:– 3,041 new local construction jobs– 425 new local operation and maintenance jobs

• Wisconsin farmers hosting wind turbines annually earn nearly $1.3 million in additional income, and local units of government receive an extra $1,584,000 in tax revenues.

Sources: Wind Today, 2009. Vol. 4, No. 3, at 34-38. http://www.bluetoad.com/publication/?i=21463; The New North, 2009. Wisconsin Wind Works Directory. http://www.thenewnorth.com; NREL Factsheet, http://www.nrel.gov/docs/fy09osti/44277.pdf. RENEW Wisconsin, May 2009. SB185 Testimony.

An Enhanced RPS Reduces Dependence on Fossil Fuels

Since 1990, greenhouse gas emissions have increased 22% in Wisconsin.

4 million metric tons of greenhouse gas emissions have been avoided due to renewable energy and energy efficiency measures already in place in WI.

Increasing our use of renewable energy will keep more money within local economies, which would otherwise be sent out-of-state to pay for coal, petroleum, and natural gas.

Source: Wisconsin Office of Energy Independence, 2008. 2008 Wisconsin Energy Statistics, at 3. Wisconsin Environment, June, 2006. Madsen, T., Wholschlegel, K., Kohler, D. Wisconsin’s

Clean Energy Future: How Renewable Energy and Energy Efficiency Protect our Environment and Create New Jobs.

The PSC has determined that the costs our utilities will incur serving their retail customers from now until 2025 – keeping the RPS at 10% – is $66.2 billion. Under an Enhanced RPS, that cost would be $67.9 billion, less than a 3% difference.

Wisconsin’s RPS includes a credit trading system, which provides a market-based mechanism to allow electric service providers to meet their obligations under the RPS in the most cost-effective way. The current value of a renewable energy credit is half a cent/KWh.

Enacting strong energy efficiency goals in advance of or at the same time as we enact an enhanced RPS will cause energy bills to go down even though rates might increase.

The Minimal Cost of an Enhanced RPS

Source: Public Service Commission of Wisconsin, April, 2009. Strategic Energy Assessment, at 21.

Can WI Learn More From our German Heritage Than Beer Brewing?

Germany’s renewable tariff program has helped it become a world leader in renewable energy generation.

More than 20% of the solar energy generated in the world is produced in Germany.

As the largest producer of renewable energy in the world, Germany has 280,000 people employed in the renewable energy sector.

Germany has a climate similar to Wisconsin that facilitates renewable energy production from a diverse array of resources, including wind, solar, biomass, and hydropower.

Source: National Journal, April, 2009, Stokes, Bruce. Let the Solar Shine In. http://www.aicgs.org/documents/advisor/stokes0509.pdf

Energy Efficiency Resource Standard: Designed to reduce electricity and natural gas use by 2% and 1.5% / year respectively

Focus on Energy Budget Tripled: Currently at 1.2% of utility revenues, or about $100 million / year. Can be done via Executive Order

Energy Star Tax Holiday: No sales tax for appliances up to $1,500 during Earth Week. Bipartisan support.

Energy Efficient Public Buildings: LEED silver or Energy Star certified?

What Energy Efficiency Policies Does WI need to Move Forward?

The Clean Energy Jobs Act: What did we Learn?

• DEATH BY 1,000 CUTS: One bill that includes over 50 policies will attract a variety of powerful opponents- from WMC to the American Petroleum Institute to the WI Industrial Energy Group.

• DON’T INTRODUCE A HUGE BILL LATE IN THE SESSION (OR EVER?): A pared down version that included only the enhanced RPS or net metering, or PACE, or an EERS might have passed. Avoid wonky jargon in public communications.

• TOO MUCH GOOD STUFF LEADS TO BAD COMPROMISES: In order to get utilities to “agree,” we were pressured to support changes to our nuclear moratorium, changes to the RPS. Fractured our coalition.

• KEEP YOUR FRIENDS CLOSE, AND ENEMIES CLOSER: Sen. Jeff Plale helped to stall CEJA in committee, and Sen. Majority Leader Russ Decker helped ensure that CEJA never got a vote.

Wisconsin’s Current Clean Energy Challenges

• Charter Street Plant: State Facilities Director Plale changes fuel transition from biomass to natural gas

• JCRAR suspends PSC 128, Uniform Wind Siting Rules: Invenergy LLC canceled its Ledge Wind Energy Center project south of Green Bay; Mid West Energy canceled its Stony Brook Project in Calumet Co; Alliant Energy canceled its Green Lake project near Fond du Lac

• 2011 Act 34, Outsource Renewable Energy Bill, allows large hydroelectric power from Canada to count towards RPS (formerly 60 MW cap)

• State Budget rolled back Focus on Energy funding increase; renewable grants, Green to Gold program

• AB 146, Unlimited Shelf Life for Renewable Energy Credits

The Problem:• State utilities currently do not have an incentive to buy

small-scale renewable energy generation from customers at rates that are high enough to encourage investment.

The Need for Action:• Several utilities in Wisconsin offer renewable energy

buyback rates. But, programs have quickly become fully subscribed or discontinued, causing job losses for small renewable energy businesses.

Advanced Renewable Tariffs were strongly opposed by many utilities during CEJA; Is net metering the answer?

Wisconsin’s Current Renewable Energy Buyback Rates

What do we Need To Do to Win?• Build a statewide team of clean energy activists

(focus on geographic, age, class diversity)• Increase collaboration with clean energy businesses,

mayors, tribes, labor, students, farmers, low-income advocates, faith and other stakeholders

• Step up educational efforts (public events, media outreach, website, FB) to make the case for clean energy and energy efficiency based on in-state jobs, minimal costs, lower energy costs, cleaner air and water, energy independence. Blend personal stories with facts / resources

• Increase presence at agencies: PSC and DNR; Use c4 funds to cover Energy & Utility committee communications

The WI Energy Business Association (WEBA) is a coalition of renewable businesses and other organizations supporting an enhanced RPS in Wisconsin in order to provide sustainable economic growth for our state. Conference call meetings are held twice a month, Fridays, 1:30 PM, Coordinated by Cullen Weston Pines & Bach.

Clean Energy Wisconsin (CEW) is a coalition of Wisconsin environmental groups working to advance renewable energy and energy efficiency policies at the state level. Meetings are hosted by Clean WI every other Monday, 1:00 – 3:00 PM.

BlueGreen Alliance, Recently merged with the Apollo Alliance, a strategic partnership between labor and environmental groups who work to create jobs in the green collar sector. Apollo meetings are hosted by Dave Boetcher every other month on Fridays at the Labor Temple.

Key Clean Energy Partnerships in WI

WEBA membership• Addison Wind, LLC• American Wind Energy Association• Badger Transport• Baldwin Dairy• Broadwind• Business Biomass Solutions• Clean Wisconsin• Convergence Energy• D&D Equipment Company• EcoEnergy• EcoManity• Eden Renewable Energy LLC• Emerald Dairy• Emerging Energies of Wisconsin• Energies Direct LLC• GHD, Inc.• Green Power Solutions Inc.• H&H Solar Energy Services• Helios USA• Horizon Wind Energy• IBEW Wisconsin State Conf. of Inside Const

Locals• Institute for Local Self-Reliance• Invenergy LLC• Kettle View Renewable Energy• L&S Technical Associates, Inc.• Legacy Solar• Michael Fields Agricultural Institute• Midwest Wind Energy

• Natural Resources Consulting, Inc.• North Wind Renewable Energy, LLC• Northern Biogas• Organic Valley Family of Farms• Prairie Solar Power & Light• Procorp Enterprises• RENEW Wisconsin• Renewegy• Ritger Law• Seventh Generation Energy Systems• Sierra Club – John Muir Chapter• StormFisher Biogas• Sustainable Living Group• Tower Tech Systems, Inc.• UrbanRe Vitalization Group• Uriel Wind• Wave Wind LLC• WES Engineering • Wind Capital Group• Wind on the Wires• Wind Wisconsin• Wisconsin Environment• Wisconsin Farmers Union

Clean Energy Wisconsin Membership

• Clean Wisconsin• Citizens Utility Board• RENEW WI• Sierra Club – John Muir Chapter• Wisconsin Environment• Wisconsin Council of Churches• Wisconsin Community Action Program Association

WI BlueGreen / Apollo Alliance Members

IBEW – 159 (Dave Boetcher, Coordinator)

IBEW – 2150 (Forrest Ceel)

USW (Sue Browne- WI / MI)

AFL-CIO (Phil Nueunfeldt)

Clean Wisconsin

Sierra Club – John Muir Chapter

WI League of Conservation Voters

COWs (Center for Wisconsin Strategies)

American Indian Tribes: A Key Environmental Ally

The Bad River Band of the Lake Superior Chippewa, the Stockbridge Munsee Mohican Indians, and the St. Croix Chippewa supported CEJA

The Forest Co. Potawatomi were CREWE members who funded patch through calls for Sierra Club to connect members w/legislators during CEJA

We worked with several tribes to stop the Crandon Mine. We’re working together again to stop GTaC from gutting mining safeguards