RENEW Wisconsin

Promoting renewable energy and facilitating projects in Wisconsin

Another township moves to block wind farm

Posted by edblume on July 10, 2009

From an article by Scott De Laruelle in the DeForest Times:

Heeding the concerns of a vocal segment of area residents, the Arlington town board approved an ordinance Wednesday that would effectively keep large wind farms out of the township. The plan commission voted 6-0 Monday to recommend the ordinance to the board.

The vote was unanimous but was not without some debate or concern. Supervisor Tom Klahn said the difference between the 1,000-foot setbacks of wind turbines from residences allowed by the state Public Service Commission and asked for by Wind Capital Group and the 2,640-foot setback in the ordinance was “huge” and would prevent any wind farms in the town. The ordinance also calls for 1,320-foot setbacks from public roads and residences of people “hosting” a wind turbine. . . .

Arlington Plan Commission member Don Plier said the group based its ordinance on “sound science” taken from the town of Union’s ordinance, as well as information such as a Minnesota Department of Health Study that outlined potential health risks.

“There’s more than two-and-half pages of scientific studies, including the World Health Organization,” he said.

Plier said Arlington does not have the time or resources to spend 14 meetings on the subject, as Union did in creating its ordinance.

“We are relying very largely on their research,” he said.

There are companion bills working their way through both houses of the Wisconsin legislature that could take away local control of siting wind farms, a point of emphasis for plan commission members, who wanted to get an ordinance on the books before a state law was established. Clark said town officials were on an “accelerated pace” to adopt the ordinance, something Klahn also took issue with.

“I disagree with the process here,” he said. “The reason we have a plan commission is to research this … the plan commission gives the appearance of setting up roadblocks (for the wind farm project). That’s not due process. (But) I’m going to support the decision of the plan commission.”

The Wind Capital Group has identified Columbia County as a possible site for a wind project.

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Wisconsin loses economic boost from Alliant’s Bent Tree wind project

Posted by edblume on July 9, 2009

Statement by Michael Vickerman, Executive Director, RENEW Wisconsin, on Public Service Commission approval of the Bent Tree Windpower Plant:

The Public Service Commission today cleared the way for Alliant Energy’s Wisconsin utility to construct a 200 MW windpower plant project in southern Minnesota. Once operational, the Bent Tree project will be a productive source of renewable energy that will provide lasting benefits to Minnesota’s economy and environment. Since it will be Alliant’s Wisconsin customers who foot the bill, however, it is reasonable to inquire whether the current utility practice of outsourcing renewable energy production to other states is a good thing for Wisconsin’s economy.

It is true that windpower projects in Iowa and Minnesota are lower-cost sources of electricity than those in Wisconsin. However, when a Wisconsin utility locates a renewable energy project in another state, Wisconsin loses the economic boost from building and operating that project—construction and maintenance jobs, component manufacturing, tax receipts to local governments, landowner payments, etc.

In a weakening economy, we should question the wisdom of outsourcing renewable energy production to other states. A Bent Tree-sized facility in Wisconsin would generate $800,000 a year in local government revenues and about $700,000 a year in lease payments to landowners. It would also create hundreds of jobs for operating engineers, ironworkers, electricians, specialty haulers, and wind energy technicians. Is cheaper electricity from distant sources a reasonable trade-off for lost employment opportunities and revenues to state and local governments? RENEW does not believe so.

Legislative approval of state-wide uniform siting standards for wind energy projects would certainly help reduce the regulatory risks involved in utility development of projects in Wisconsin.

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WI PSC to consider plans for MN wind farm

Posted by edblume on July 9, 2009

From an Associated Press article by Elizabeth Dunbar and Todd Richmond in the Wisconsin State Journal:

Wisconsin regulators plan to vote Thursday on a utility’s plans to build a massive wind farm in southern Minnesota.

Wisconsin Power & Light Co., a subsidiary of Madison-based Alliant Energy, wants permission to start the first phase of the farm on 32,500 acres just north of Albert Lea in Freeborn County. Plans call for scores of turbines that would generate about 200 megawatts of electricity, enough to power 50,000 homes.

According to state estimates, the farm could cost nearly $500 million. Alliant officials say the cost is built into their plans to raise electric and natural gas rates by $91.7 million beginning in 2010. That translates to almost $9 more on a typical residential monthly electric bill and $2.40 more on a typical monthly residential gas bill. The farm would account for about $29.6 million of the total increase.

Alliant officials said the farm would help them meet requirements in Wisconsin law that the state get about 10 percent of its energy from renewable sources by 2015. Alliant must produce about 9 percent of its energy from renewable sources within the next six years to comply with individual utility requirements.

“This (is) an opportunity to position ourselves for the future,” Alliant spokesman Steve Schultz said.

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T. Boone to build in Wisconsin?

Posted by edblume on July 8, 2009

A story from UPI.com:

DALLAS, July 8 (UPI) — Billionaire U.S. oilman T. Boone Pickens says he is putting aside plans to build the world’s biggest wind turbine farm in the Texas Panhandle.

Jay Rosser, a spokesman for Pickens’s BP Capital Management, said the ambitious, $10 billion effort has been shelved for the time being because of a tight credit market and because electric utilities are opting to build natural gas-fired generators at a time of low gas prices, The Washington Post reported Wednesday.

“Boone still remains committed and focused on developing wind energy in the United States
,” Rosser told the newspaper. “The timing is not as aggressive as he originally outlined because of the collapse of the capital markets and because of the steep downturn of natural gas prices.”

Pickens instead will build three or four smaller-scale wind farms costing $2 billion, telling The New York Times in an interview that he is unsure at this point if he will ever be able to revive the giant wind project.

The Times said Pickens had ordered 687 large wind turbines from General Electric (NYSE:GE) to be placed in the Texas wind farm, but now aims to split them up into smaller farms, possibly in Wisconsin, Oklahoma, Kansas, Texas and Alberta, Canada.

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Officials urge state wind rules

Posted by edblume on July 7, 2009

From an article by Nathaniel Shuda in the Wisconsin Rapids Tribune:

Wisconsin Rapids officials are working to create a policy regulating small wind-energy systems but want legislators in Madison to create a statewide law for consistency.

With a planned 350,000-square-foot plant expected to produce large, industrial wind turbine blades, the city currently has no rules regulating smaller, more residential wind mills, Mayor Mary Jo Carson said.

“You’ve got to progress and get it done, so when your constituents have questions, you’re prepared for that,” said Carson, also chairwoman of the city’s Planning Commission.

The city already received at least two requests from residents looking for guidance on erecting wind mills in their yards or on their roofs, she said.

City staff members have forwarded a proposed zoning ordinance to Wisconsin Focus on Energy for guidance but have not yet received a response, said Michael Ostrowski, the city’s planning and economic development director.

At the state level, a similar policy has made it through the Assembly Committee on Energy and Utilities but still is before the Senate Committee on Commerce, Utilities, Energy and Rail.

The bill would grant rule-making authority to the Public Service Commission to develop statewide regulations to govern small wind systems. Local ordinances cannot be more stringent than state regulations.

State Reps. Amy Sue Vruwink, D-Milladore, and Louis Molepske, D-Stevens Point, co-sponsored the bill. The effort also has garnered support from various Republican lawmakers, including state Rep. Scott Suder, R-Abbotsford.

“Our fear is that we pass this and then the state pushes through (a different version),” Carson said. “I really wish the state would get (going) here. We need to move on.”

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Wind turbines might be asked to stop in severe weather

Posted by edblume on July 6, 2009

From an article by Scott Williams in the Milwauke Journal Sentinel:

A Dodge County wind farm might be asked to shut down its rotating turbines during severe weather to avoid disrupting a nearby weather radar system.

National Weather Service officials said they have started discussing such options with owners of the Butler Ridge Wind Farm.

The wind farm’s giant turbines have sent false storm signals to the government radar system in nearby Sullivan, which provides severe weather alerts throughout southeastern Wisconsin.

Tim Crum, a spokesman at the National Radar Operations Center in Norman, Okla., said the wind farm does not present a significant problem for the radar operation about 30 miles away.

However, an agreement to shut down the turbines during inclement weather remains a possibility, Crum said.

“That would be a positive step, if it becomes necessary,” he said.

Butler Ridge, which began operation about six months ago, has 36 turbines that are each about 260 feet tall and 300 feet wide. The operation generates electricity for several surrounding communities.

The National Weather Service in April said the wind farm’s false storm signals could create confusion during real severe weather conditions.

The owner of the wind farm, Babcock & Brown Ltd., later approached weather service officials to discuss the situation and consider possible solutions.

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Further reflection on state budget machinations

Posted by edblume on July 2, 2009

RENEW Wisconsin along with many of its members and friends asked Governor Doyle to veto a budget provision that delayed a sales tax exemption for renewable energy equipment. He did not veto the provision, so the exemption is scheduled to begin July 1, 2011.

Michael Vickerman reacts to the governor’s (in)action:

As you know, the current state budget defers the effective date of the sales tax exemption on renewable energy systems by two years. The original exemption date of July 1, 2009, had been established in the previous biennial budget.

How much of an impact the implementation delay will have on the Focus on Energy renewable energy program is anyone’s guess, though the nonprofit sector, a sizable segment of our target market, will not see any impact at all. There is likely to be a short-term impact on the private side, however. When word got out several months ago that the sales tax on RE systems was set to expire today, a few prospective system owners adjusted their installation timetables to take advantage of that change.

Longer term, I believe some renewable energy sectors are going to be more adversely affected than others. The sectors I worry about the most are the >20 kW wind market and the thermal markets (commercial solar water heating and biomass). The sales tax on a 35 kW wind turbine is going to run between $10K and $15K, and $27K on a 100 kW Northwind. These are substantial sums that will certainly affect return on investment. Moreover, the limited number of turbine models greater than 20 kW reduces a prospective system owner’s options for downsizing. As for the two thermal sectors identified above, the implementation delay comes at a time when natural gas prices are sinking to levels not seen since the 1990’s (when adjusted for inflation). The sales tax decision intensifies the already unfavorable economic headwinds that thermal renewable energy sectors must contend with.

I am less worried about PV because of its modularity and its popularity among nonprofit owners, and I believe biogas will not be materially affected because of the agricultural exemption. I don’t recall ever reviewing a biogas grant application that identified sales tax in the cost breakouts.

Given the weak labor picture and the sharp slowdown in business investments, the likelihood that revenues flowing into the state treasury will come in at or above current budget projections is very remote. The factors that resulted in the implementation delay through this budgetary cycle are not going away any time soon. It would be unrealistic to expect a different outcome in 2011. The only difference would be that another implementation delay in 2011 wouldn’t come as a rude surprise.

With the state budget experience behind us, I would like to suggest that installers and contractors proceed as though the sales tax exemption will not take place as prescribed in current law. Even if it was allowed to take effect in 2011, there’s no guarantee that an exemption will be continued after 2013. It will always be subjected to the perpetual tug-of-war between good intentions and budget realities, much like the federal Renewable Energy Production Incentive (REPI) of yesteryear that proved utterly ineffectual in stimulating non-profit ownership of wind turbines.

Policymakers must bear in mind that that an inconsistent policy framework for building up emerging markets may be more harmful to the intended beneficiaries of such intervention than having no policy at all. The 11th hour withdrawal of the sales tax exemption cannot help but erode installer and contractor confidence in the long-term viability of the markets they participate in.

The only way out of this predicament is to establish a stable and enduring policy environment for nurturing growth in the renewable electric and thermal markets. Implementing the pro-renewable energy policy initiatives recommended by the Governor’s Global Warming Task Force would greatly help matters. The most effective actions would:

• Establish Advanced Renewable Tariffs to support distributed renewable generation sources;
• Extend renewable energy incentives to include propane and heating fuel users;
• Increase the Renewable Energy Standard and modify resource eligibility standards to include solar hot water and biomass heating systems.

Finally, regarding the excerpt below issued by the Governor’s Office, it’s worth noting that the state budget authorized millions of dollars to various building trade unions to provide training and education to members looking to break into the renewable energy industry. I commend state officials for recognizing the value of training and educating Wisconsin’s workforce to build up a renewable energy infrastructure serving businesses and communities across the state. At the same time, if the plan is to invest millions of dollars in workforce development to serve a vibrant renewable energy marketplace, then it behooves the state to implement policies that would generate legitimate work opportunities for these skilled workers. To increase the likelihood that the training and education that occurs today will lead to the jobs of tomorrow, the state must take stronger steps today to develop a renewable energy marketplace attractive enough to entice existing and new businesses to make a long-term commitment to it. In my mind that means a stronger commitment to distributed renewable resources, starting with incentives like Advanced Renewable Tariffs to create investment certainty and predictability. If the state fails to give equal weight to the market side of the equation, we will wind up exporting much of Wisconsin’s skilled renewable energy labor force to other states that can employ them.

Michael Vickerman
RENEW Wisconsin
Wisconsin Wind Working Group
mvickerman@renewwisconsin.org
www.renewwisconsin.org

+++++++++++++++++++++++++++++

From the Governor’s Office:

Clean Energy Wisconsin and Job Training
Through Wisconsin Act 2, the Governor provided $2,630,000 in grants from the Wisconsin Development Fund to specific organizations (unions) in the building trades to provide job training and retraining programs, including training in green building and the installation of alternative energy systems.
a. $1 million to the Wisconsin Regional Training Partnership/Building Industry Group Skilled Trades Employment Program (BIG STEP)
b. $150,000 to the Painters and Allied Trades, District Council 7 to train workers on the construction industry on the LEED certification process
c. $175,000 to the Painters and Allied Trades, District Council 7 to train to certify individuals to provide instruction to workers in the construction industry on standards established by the National Association of Corrosion Engineers International, and by the Society for Protective Coatings
d. $175,000 to the Wisconsin State Council of Carpenters to train carpenters in the installation of windmills and other alternative energy systems.
e. $72,000 to the Wisconsin State Council of Carpenters to train carpenters in sustainable green building practices.
f. $248,000 to the Wisconsin Pipe Trades Association, Local 75 to build, using green building practices, a mobile training facility to be used in connection with training programs for workers in the pipe trades.
g. $265,000 to the Wisconsin Laborers’ District Council
h. $275,000 to the Wisconsin Operating Engineers to train workers in the construction of geothermal energy and wind energy systems.
i. $210,000 to the International Brotherhood of Electrical Workers to purchase equipment for three laboratories to be established in the state for training workers in the installation of solar electricity systems
j. $60,000 to the International Brotherhood of Electrical Workers for instructor training and start−up costs in connection with the laboratories that will be established by this group

The budget also provides nearly $2 million to the Wisconsin Technical College System to support efforts to re-train individuals and prepare them for available jobs in industries across the state.

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Getting a (plug-in) charge in Madison

Posted by edblume on July 1, 2009

From a story by Bob Hague on the Wisconsin Radio Network:

phev_plug_small (2)Drivers of plug in electric vehicles will soon be able to charge up on the streets of Wisconsin’s capital city. Madison Gas and Electric is the first utility in the nation to make electric vehicle charging stations publicly available, with the purchase of six such stations to be installed around the city, according to MG&E’s Steve Krause.

“One of the disadvantages (to electric vehicles) now is when you don’t have a public charging station, is you have to either charge the car at your home, or you have to charge it a prearranged location,” said Krause. “People that want to use electric cars all day long, either in town or even town to town, need a place to refuel that vehicle, and these charging stations will do that. We also have an additional bonus. All of the power that will be used to power these cars will come from renewable sources, and it will be primarily wind energy.”

This is a demonstration project and for now, electric vehicle drivers won’t be charged for the juice. MG&E’s Don Peterson said the utility sees this as a business opportunity eventually, so they’ll be collecting data. For example, how many electric vehicles are out there in the Madison area? “We really don’t know how many electric vehicles are out there,” said Peterson. “The estimates go to anywhere from 25 to 75 vehicles.” That’s a number that could be increasing fairly rapidly: Peterson noted that a Madison area car dealership is already doing a brisk trade, converting Toyota Prius hybrids into all electric plug ins.

“We see this is as a business opportunity, but right now each charging station, installed, is costing somewhere between $5,000 and $10,000,” said Peterson. “We’re exploring avenues for grants and additional research money, but right now this is an MG&E funded program.”

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Video celebrates 10th anniversary of wind farm

Posted by edblume on June 30, 2009

Madison Gas and Electric issued a news release and a video on the Rosiere Wind Farm:

MADISON, Wis. – (Business Wire) Wisconsin’s first large-scale wind farm began producing clean, renewable electric power 10 years ago today in Kewaunee County. The 17-turbine, 11.22-megawatt facility built and owned by Madison Gas and Electric (MGE) is located near Rosiere. Since 1999, the facility has produced over 215,000 megawatt-hours of electricity, enough power to supply 3,000 homes annually.

The facility was built in direct response to MGE customers who wanted to purchase green energy for their homes and businesses. The wind farm’s generating capacity available for green energy sales was sold out in less than four months. Over the last 10 years, MGE has increased its wind energy portfolio by 12 times as strong customer support for renewable energy continues. MGE customers have one of the highest participation rates nationally in green energy programming offered by investor-owned utilities.

“We are grateful to the landowners and communities that support this project,” said Lynn Hobbie, MGE senior vice president. “We also thank the customers who have made our green pricing program so successful.”

“In 10 years, wind generation has completed the transition from boutique energy to a bulk power,” said Michael Vickerman, executive director of RENEW Wisconsin. “Early commitments to wind power from utilities like MGE helped make that happen and were instrumental to that industry’s subsequent growth and maturation.”

At the time, MGE’s Rosiere facility was the largest wind farm in the Eastern United States. Today the wind farm is one of nine commercial facilities in Wisconsin. Wind-generating capacity in Wisconsin totals nearly 450 megawatts.

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RENEW contacts Doyle to ask for veto

Posted by edblume on June 26, 2009

RENEW hand-delivered the letter below to Governor Doyle almost at the end of business on Friday afternoon, since Doyle may sign the budget bill this weekend.

June 26, 2009

Governor James E. Doyle
115 East, State Capitol
Madison, Wisconsin 53707

Dear Governor Doyle:

RENEW Wisconsin and its members across the state respectfully request a veto of the budget bill provision that would delay the effective date of the sales and use tax exemption for equipment powered by or used in the generation of wind and solar energy and manure digesters from July 1, 2009, until July 1, 2011.

Though the sales tax exemption might seem of little economic importance to a planned installation, the amount could significantly change a project’s economic feasibility, depending on installation size. For instance, the sales tax on a 50 kilowatt wind turbine that costs $250,000 would come to at least $12,500. That would add several years to the project’s payback.

This year Wisconsin businesses and homeowners have planned and bid on renewable energy systems based on system costs that include the sales tax exemption. Some would-be system owners have delayed their installation in anticipation of the sales tax exemption. Repealing this exemption on such short notice will result in project cancellations and delays.

Customer-owned wind and solar systems will contribute toward the renewable energy needed to achieve a 25% target by 2025. Please keep us moving toward the target by vetoing the delayed effective date for the sales tax exemption.

Thank you for your consideration.

Respectfully,
Michael Vickerman
Executive Director

RENEW also asked members and renewable energy supporters to ask Doyle to veto the provision by sending his office by sending an e-mail through his Web site — http://www.wisgov.state.wi.us/contact.asp?locid=19.

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