Doyle says renewable energy standard key to bill

From an Associated Press story on Channel3000.com:

MADISON, Wis. -- Gov. Jim Doyle said he's open to approving a scaled-back clean energy bill as long as a key provision setting new renewable energy standards remains in tact.

Doyle says the crux of the sweeping measure being debated in the Legislature would require 25 percent of Wisconsin's energy to come from renewable sources by 2025. He said that provision is what's critical to creating new jobs in fields like solar and wind energy.

Doyle told reporters he is open to changes on other details that he didn't specify and that he expects "significant changes" as it moves through both houses.

Johnson Controls and IBM team up to develop ‘smarter’ buildings

From an article in Biz Times Daily:

Johnson Controls Inc. and IBM Corp. today announced a new relationship to create a new era of “smarter” buildings.

Together, the companies will team to provide a Smart Building Solution that can improve operations and reduce energy and water consumption in buildings worldwide.
Building on an existing relationship formed between the two companies in 2007 to create energy efficient datacenters, the new offering benefits any building or portfolio of buildings.

Glendale-based Johnson Controls will combine its global leadership in energy efficiency and sustainable services and technologies with IBM's global leadership in software, hardware and services. The result will help clients address the growing pressure they face to improve energy and asset management performance across their enterprises.

Of Molehills and Renewable Energy Purchases

From a commentary by Michael Vickerman, RENEW executive director:

As the Legislature mulls over the pending comprehensive energy bill known as the Clean Energy Jobs Act (SB 450/AB 649), both supporters and opponents have been keeping their artillery banks busy, peppering the airwaves and cyberspace with press releases, position papers, radio advertisements and economic impact studies. It’s a veritable war of words out there.

In pursuit of the larger objective of undermining public support for that bill, several opponents of the energy bill are attempting to manufacture a controversy out of the State of Wisconsin’s purchasing of renewable electricity, an outgrowth of the state’s current energy policy law (2005 Act 141). That law directed the State of Wisconsin to source 10% of its electrical usage from renewable resources by 2007 and 20% by 2011. In the initiative’s first year, the purchase of renewable energy added $1.4 million, or 1.7%, to the state’s overall electric bill.

The critics, led by Rep. Brett Davis (R-Oregon), contend that the state’s purchase is a budget-straining extravagance that taxpayers cannot afford at this time. In a letter sent to the Department of Administration, Davis insinuated that one of the energy purchase contracts amounts to a sweetheart deal for the utility provider, WPPI Energy, because it charged higher premiums than the other two utilities. Davis has asked the Legislative Audit Bureau to review the WPPI contract. WPPI, it should be noted, is a nonprofit wholesale energy provider serving more than 40 municipal electric utilities in Wisconsin.

Before we plunge into the politics behind this puffed-up molehill, a brief primer little on energy pricing is in order.

Intro to DSM course coming to Milwaukee, March 9-11

From an annoucement made by the Association of Energy Services Professionals:

Learn the DSM fundamentals you or your team needs to know now to research, plan, design, implement, track and measure your DSM programs. You will also learn about DSM Economics and cost-effectiveness tests. Also included are relevant case studies, best practices and lessons learned. Register for this exceptional learning opportunity today! Taught by nationally-known trainers well-versed in all aspects of DSM, this course gives you the tools to create an effective DSM program. Click here for more course details.

DATES: March 9 – 11, 2010

PLACE: Milwaukee, WI (We Energies facility)

REGISTER: www.aesp.org

QUESTIONS? Contact Suzanne Jones 480-704-5900 or suzanne@aesp.org

Clearing up Wisconsin’s lakes with clean energy

From a commentary by Michael Vickerman, RENEW Wisconsin:

In the next six weeks the Legislature will make a truly momentous decision on the state’s energy future. Either it can embrace an ambitious 15-year commitment to invigorate the state’s economy through sustained investments in clean energy or decide to coast along on current energy policies until they lapse and lose their force and effect.

Arguably the most innovative feature in the Clean Energy Jobs Act, as it’s now called, is a proposed requirement on larger electric providers to acquire locally produced renewable electricity with Advanced Renewable Tariffs (ARTs). These are technology-specific buyback rates that provide a fixed purchase price for the electricity produced over a period of 10 to 20 years, set at levels sufficient to recover installation costs along with a modest profit. Now available in more than a dozen nations in Europe as well as the Province of Ontario, ARTs have proven to be singularly effective in stimulating considerable growth in small-scale production of distributed renewable electricity.

From what we’ve observed, Focus on Energy and federal incentives (the current mix of financial support) are not sufficient to drive significant installation activity when utility buyback rates are pegged to the cost of operating 40-year-old coal plants. It’s unrealistic to assume that a brand-new farm-sized renewable energy system, regardless of the resource used, can compete head-to-head with central station power plants that have been fully amortized.

However, when existing incentives and tax credits are supplemented with an additional source of financial support, such as higher buyback rates, installation activity picks up noticeably.

Consider the much-vaunted Dane County Cow Power Project, which should be operational before the end of the year. Using anaerobic digestion technology, this Waunakee-area installation will treat manure from three nearby dairy farms and produce biogas that will fuel a two-megawatt generator. This community digester project, the first of its kind in Wisconsin, will be built with private capital and a State of Wisconsin award to support a technology that reduces the flow of phosphorus into the Yahara Lakes. A second digester project is also planned for Dane County.

The key element that makes the financing of this project work is the special biogas buyback rate that Alliant Energy, the local utility, voluntarily put in place a year ago. With the higher rate, the project’s return on investment was sufficient to interest outside investors.

Unfortunately, once this initiative reached its predetermined capacity limit, Alliant discontinued the special biogas rate. This complicates matters for future digester installations, in that the other utilities that serve Dane County, including Madison Gas & Electric, do not offer special buyback rates to customers who generate electricity from biogas.

While voluntary initiatives are laudable, they are too small and sporadic in nature to make much of a dent in converting Wisconsin’s organic wastes into energy. Indeed, unless a policy is adopted statewide that requires utilities to increase their purchases of locally generated renewable electricity, there is no guarantee that Dane County will see a second digester project built.

If we are serious about neutralizing the algae blooms that turn the Yahara lakes green each year, we’ll need to adopt a clean energy policy, including ARTs, that facilitates the development of biodigesters in farm country.

Study projects minimal impact from renewable buyback rates

From a letter to State Rep. Spencer Black and State Sen. Mark Miller:

RENEW is pleased to provide the enclosed copy of the narrative and appendix of tables from an economic analysis that we commissioned.

The analysis concludes that special buyback rates (sometimes called Advanced Renewable Tariffs) designed to stimulate small-scale renewable energy installations would have negligible impact on residential utility bills, averaging about $10 a year. That’s less a dollar a month for the typical customer. And it’s less than a household’s cost of purchasing the smallest block of green power from Madison Gas and Electric, for instance.

Compared with other forms of economic stimulus, promoting small-scale renewables through utility buyback rates would deliver a substantial and long-lasting economic punch with minimal impact on the Wisconsin citizen’s pocketbook.

Prepared by Spring Green-based L&S Technical Associates, the study modeled rate impacts from the legislation’s provisions for ARTs on the state’s five largest utilities. The modeling predicts cost impacts ranging from a low of $8.12 a year for a residential customer of Wisconsin Public Service to as high as $11.07 for a Wisconsin Power and Light (Alliant) customer. The projected impact would amount to $8.81 a year for a We Energies customer, $9.71 for a Madison Gas and Electric customer, and $10.11 for an Xcel Energy customer.

The projections assume that when each utility reaches its maximum threshold of 1.5 percent of total retail sales. In the aggregate, this percentage equates to 1/70th of total annual sales. That’s one billion kilowatt-hours a year, out of total annual sales of 70 billion kilowatt-hour.

Though the principals of L&S Technical Associates serve on RENEW’s board of directors, they have prepared numerous renewable energy studies for other clients, including the U.S. Department of Energy, Energy Center of Wisconsin, and the Wisconsin Department of Natural Resources. L&S has also co-authored renewable energy potential studies in response to requests from the Wisconsin Public Service Commission.

The bill’s renewable energy buyback provisions would unleash a steady flow of investment that would lead to new economic activity and jobs while moving us toward energy independence – exactly what we all hope to accomplish by passage of the Clean Energy Jobs Act legislation.

Wind energy firm picks Milwaukee for plant

From an article by Larry Sandler in the Milwaukee Journal Sentinel:

Politicians and business leaders were quick to celebrate - and claim credit for - Monday's announcement that a Spanish company will bring hundreds of new jobs to Milwaukee.

Wisconsin's current governor, two candidates to succeed him, and not one but two regional economic development alliances all lined up to score points from a new Menomonee Valley plant for Ingeteam, a Spanish manufacturer of wind-turbine generators.

About 270 manufacturing jobs will be created by the plant, said Greater Milwaukee Committee President Julia Taylor. Building the plant will bring construction jobs as well, said Patrick Curley, chief of staff to Milwaukee Mayor Tom Barrett.

It will be Ingeteam's first North American factory, said Gale Klappa, co-chairman of the Milwaukee 7 economic development coalition.

Ingeteam chose the valley because of its proximity to workers, I-94 and Spanish-speaking neighborhoods, as well as Milwaukee's "great reputation for manufacturing," said Barrett, also a Milwaukee 7 co-chairman.

The plant will be built near the western end of the valley, Barrett said. The exact site will be announced Tuesday, Curley said.

Barrett called on Klappa, the chief executive officer of We Energies, to make the announcement during the mayor's "state of the city" address at the downtown headquarters of Manpower. He also introduced five Ingeteam executives, who he said had just flown in from Spain for the announcement.

In January, President Barack Obama's administration announced that Ingeteam had been awarded $1.66 million in clean-tech manufacturing tax credits to make wind turbine generators as well as power converter and control systems in Milwaukee. Further indications surfaced last week that the company had picked Milwaukee.

Ingeteam is a privately held, diversified manufacturer based in Zamudio, Spain, a suburb of Bilbao, the city visited last fall by state Commerce Secretary Richard Leinenkugel, City Development Commissioner Rocky Marcoux and Milwaukee 7 representatives. Outside Spain, the company has operations in seven countries, including an office in Mequon.

Debate over Clean Energy Jobs Act centers on prices

From an article by Tom Content in the Milwaukee Journal Sentinel:

In the rhetoric of the energy bill debate in Madison, energy prices will go up - either because the Legislature passes the Clean Energy Jobs Act or because the Legislature fails to pass it.

Rising energy prices are a familiar refrain to many in Wisconsin, where energy expenditures total $16 billion a year. A review of electricity price increases by the Journal Sentinel found residential customers across the state pay 39% to 70% more than they paid in 2001.

Advocates on both sides of the debate over the Clean Energy Jobs Act are raising fears about higher costs.

Opponents say utilities will have to invest billions of dollars in wind farms and other projects to comply with an aggressive renewable energy mandate proposed by the bill. Supporters say billions of dollars are at risk because of Wisconsin's heavy reliance on coal.

A new analysis by the state Public Service Commission found that utility bills are likely to be less in 2025 if the bill passes and there's a carbon tax or cap-and-trade system that penalizes coal.

Public Service Commission Chairman Eric Callisto testified at a recent hearing that power prices for a typical Wisconsin customer would fall nearly 7% if the bill is passed and there's a $20-per-ton price on carbon. Prices would fall 1% if there's a $10-per-ton price on carbon and would rise nearly 6.6% if there's no carbon price, he said.

"But that's not reality," he said. "I don't believe for a second that we're going to see a future where carbon doesn't have a price on it."

In its studies over the last several years, the commission has been banking on the fact that there will be a price on carbon, he said.

Under that scenario, "there are dollars left on the table by the status quo," Callisto said.

Doyle announces $500,000 in stimulus grants for energy independence planning

From a news release issued by Governor Doyle:

MADISON – Governor Jim Doyle today awarded $500,000 in Recovery Act funds to communities moving toward a clean energy future. The Governor announced 11 grants totaling $500,000 to help 24 communities develop plans to reach his “25 by 25” energy independence goals.

“These grants will help Wisconsin communities across the state seize the opportunity to save money through energy efficiency and grow a strong new part of our economy in clean energy,” Governor Doyle said. “Through the Recovery Act, our communities will lead as the world moves rapidly in the direction of clean energy and energy efficiency. We spend $16 billion on fossil fuel energy every year in Wisconsin, and all those dollars are lost to our economy. By working toward these ambitious renewable energy goals, we will create good jobs and continue our state’s clean energy leadership.”

The grant program is funded through the Recovery Act’s Energy Efficiency and Conservation Block Grant (EECBG) program. The 24 communities will create “25x25” plans to meet the Governor’s goal of generating 25 percent of the state’s electricity and transportation fuels from renewable resources by the year 2025.

The 2010 Wisconsin Energy Independent Community Partnership Pilots are: City of Altoona, Crawford County, City of Eau Claire, Eau Claire County, City of Fennimore, Village of Ferryville, Green Lake County, City of Gays Mills, City of Jefferson, City of Kaukauna, Lac du Flambeau Band of Lake Superior Chippewa Indians, Village of La Farge, City of Monona, Polk County, City of Prairie du Chien, Shawano County, Village of Soldiers Grove, Vernon County, Village of Viola, City of Viroqua, Waukesha County, and City of Whitewater.

The 25x25 plan process begins this month and will be completed by December 2010. During the process, opportunities will be available for other communities to learn from the experiences of the pilot communities. Open meetings on the topic will be held by the Office of Energy Independence during the months of April, August and December.

The program builds on Governor Doyle’s work to make Wisconsin a clean energy leader. Last month, Governor Doyle launched the Clean Energy Jobs Act, a landmark legislative package to accelerate the state’s green economy and create jobs.

Companies show support for clean energy jobs

From the home page of Governor Doyle:

Madison, Kenosha County and Milwaukee sewer district join in 25x25 goal

From a news release issued by Govenor Doyle:

MADISON – Governor Jim Doyle announced today that the City of Madison, Kenosha County and the Milwaukee Metropolitan Sewerage District (MMSD) have joined the Wisconsin Energy Independent Community Partnership. They have pledged to work toward Governor Doyle’s “25x25” goal of generating 25 percent of the state’s electricity and transportation fuels from renewable resources by the year 2025. . . .

“I welcome Madison, Kenosha County and MMSD as new partners in working toward energy independence that keeps energy dollars in our state, creates good jobs and cleans our air and water,” Governor Doyle said. “Every year, we send $16 billion out of state to power our homes and businesses and fuel our cars. Building a clean energy economy is not only an enormous opportunity to capture those dollars, but also create good jobs here in Wisconsin.”

Last month, Governor Doyle launched the Clean Energy Jobs Act, a landmark legislative package to accelerate the state’s green economy and create jobs. The package calls for updating renewable portfolio standards to generate 25 percent of Wisconsin’s fuel from renewable sources by 2025 and sets a realistic goal of a 2 percent annual reduction in energy consumption by 2015. A comprehensive economic assessment of the package found that it would directly create at least 15,000 green jobs in Wisconsin by 2025.

Webinar Series: Accelerating Energy Efficiency

The Energy Center of Wisconsin put the following Webinar recordings online:

Scouting for Residential Electricity Savings
Presented by Scott Pigg, Principal Project Manager and Ingo Bensch, Senior Project Manager, Energy Center of Wisconsin

The Silver Lining in Climate Survey Results: Refining the Design of Energy Efficiency Programs and Climate Policy
Presented by Ingo Bensch, Senior Project Manager, Energy Center of Wisconsin

The Financial Effects of Energy Efficiency on Utilities: A Closer Look at Decoupling
Presented by Steve Kihm, Research Director, Energy Center of Wisconsin

Energy Efficiency's Great Potential
Presented by Susan Stratton, Executive Director and Steve Kihm, Research Director,
Energy Center of Wisconsin

Risk, Uncertainty and Energy Efficiency: A Real Options Analysis
Presented by Steve Kihm, Research Director, Energy Center of Wisconsin

Alliant Energy helps customers be "Power Thinkers"

From a news release issued by Alliant Energy:

New Web site connects customers to interactive tools and information
February 8, 2010 – Did you know that leaving a video game system on when not in use can cost you more than $145 per year in electricity costs? Did you know that turning your heat down five degrees before you go to bed each night could save you about $50 in heating costs this winter? Those that know the answers to these questions and are actively taking actions to reduce their energy costs and live a little greener are “Power Thinkers.” And, Alliant Energy is providing customers with a one-stop link of helpful resources and tools that help more people become Power Thinkers with a new Web site called powerthinkers.com.

Powerthinkers.com is a tool for customers searching for energy-saving ideas and other ways to live green. The site includes sections on saving money, smart living, renewable energy, energy-saving tips and interactive calculators. The interactive calculators are a special feature available to help customers see the impact of the actions they can take to save energy and accomplish real dollar savings. Customers can access the site by going directly to powerthinkers.com or via Alliant Energy’s main Web site at alliantenergy.com.

“A Power Thinker is someone who makes smart choices in how they live their lives; someone who looks for ways to save energy and make a positive impact on their budget and the environment.” says Linda Mattes, Director of Energy Efficiency and Renewables at Alliant Energy. “Power Thinkers want answers, solutions and ideas, and Alliant Energy is pleased to provide a tool that makes those easily accessible to customers and others who are interested in learning more about living green.

Brown County Town of Holland votes for wind-farm ban

From an article by Scott Williams in the Appleton Post-Crescent:

Opponents of a proposed wind farm in southern Brown County hope the Town of Holland is just the first municipality to set a one-year ban on wind farm construction.

Chicago-based Invenergy LLC submitted an application to state regulators in October for permission to develop the Ledge Wind Energy Project within four neighboring towns in southern Brown County. The plan calls for 54 wind turbines in Morrison, 22 in Holland, 20 in Wrightstown and four in Glenmore.

The Holland Town Board voted 3-0 Monday night to impose a one-year moratorium and increase from 1,000 feet to 2,640 feet — equal to a half-mile — how far any wind turbines must be set back from neighboring properties.

Despite the vote, it's unclear whether local moratoriums or other potential obstacles will have any effect.

The state Public Service Commission has authority to approve such developments regardless of what local officials want, PSC spokesman Tim Le Monds said.
"It trumps anything at the local level," he said.

Energy efficiency efforts save state more than $268 million a year

From a news release issued by Focus on Energy:

MADISON – Governor Jim Doyle today announced that Focus on Energy, Wisconsin’s energy efficiency and renewable energy initiative, has helped Wisconsin residents and businesses save more than $268 million in annual energy costs. The program is just one of the many efforts Governor Doyle has led to help Wisconsin residents and businesses save money through improved energy efficiency.

“The Focus on Energy Program has worked very hard with Wisconsin residents and businesses to lower energy costs and reduce their environmental impact,” Governor Doyle said. “We all know the cheapest way to lower carbon emissions is through energy conservation and Wisconsin’s efforts have resulted in significant savings for our residents and businesses.”

Governor Doyle recently launched the Clean Energy Jobs Act, a landmark legislative package to accelerate the state’s clean energy economy and create jobs. The package calls for updating renewable portfolio standards to generate 25 percent of Wisconsin’s fuel from renewable sources by 2025 and sets a realistic goal of a 2 percent annual reduction in energy consumption by 2015. A comprehensive economic assessment of the package found that it would directly create at least 15,000 green jobs in Wisconsin by 2025.

NREL sudy shows 20% wind is possible by 2024

From a news release issued by the National Renewable Energy Lab:

[T]he U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL) released the Eastern Wind Integration and Transmission Study (EWITS). This unprecedented two-and-a-half year technical study of future high-penetration wind scenarios was designed to analyze the economic, operational, and technical implications of shifting 20 percent or more of the Eastern Interconnection’s electrical load to wind energy by the year 2024.

“Twenty percent wind is an ambitious goal, but this study shows that there are multiple scenarios through which it can be achieved,” said David Corbus, NREL project manager for the study. “Whether we’re talking about using land-based wind in the Midwest, offshore wind in the East or any combination of wind power resources, any plausible scenario requires transmission infrastructure upgrades and we need to start planning for that immediately.”

The study identified operational best practices and analyzed wind resources, future wind deployment scenarios, and transmission options. Among its key findings are:

•The integration of 20 percent wind energy is technically feasible, but will require significant expansion of the transmission infrastructure and system operational changes in order for it to be realized;
•Without transmission enhancements, substantial curtailment of wind generation would be required for all 20 percent wind scenarios studied;
•The relative cost of aggressively expanding the existing transmission grid represents only a small portion of the total annualized costs in any of the scenarios studied;
•Drawing wind energy from a larger geographic area makes it both less expensive and a more reliable energy source – increasing the geographic diversity of wind power projects in a given operating pool makes the aggregated wind power output more predictable and less variable;
•Wind energy development is a highly cost-effective way to reduce carbon emissions – as more wind energy comes online, less energy from fossil-fuel burning plants is required, reducing greenhouse gas emissions;
•Carbon emissions are reduced by similar amounts in all scenarios, indicating that transmission helps to optimize the electrical system and does not result in coal power being shipped from the Midwest to New England States;
•Reduced fossil fuel expenditures more than pay for the increased costs of additional transmission in all high wind scenarios.

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.