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Advance or Retreat? Constructing a Viable Policy Road Map for Renewables (Mostly Solar) in Wisconsin. Michael Vickerman Sustainability Summit, March 7, 2013 Milwaukee, Wisconsin. About RENEW Wisconsin. Advocates for state-level sustainable energy policies since 1991
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Advance or Retreat? Constructing a Viable Policy Road Map for Renewables (Mostly Solar) in Wisconsin Michael Vickerman Sustainability Summit, March 7, 2013 Milwaukee, Wisconsin
About RENEW Wisconsin Advocates for state-level sustainable energy policies since 1991 One of the architects of the state’s Renewable Energy Standard and ratepayer-funded public benefits program Founded in 1991 Nonprofit – funding comes from grants, members Over 250 members (businesses and individual) An organized voice for renewable energy producers and purchasers Please join! Sunny morning (10-21-11) Aldo Leopold Legacy Center Baraboo Installer: H&H Solar
We Have to Stop Outsourcing Energy Capture and Start Doing It Ourselves My house
Value Proposition to Society • Emission-free • Non-depleting • Indigenous • Highly secure Rooftop - Osceola Middle School Osceola, WI
This Brewery Has a Long-Term Future Central Waters Brewing Company Amherst PV, 20 kW, 2011 SHW 960 sq. ft., 2009
2 MW, 14 million kWh/yr Town of Westport
Epic Systems, Verona 1.8 MW solar field January 2012
Epic Systems, Verona May 2011 360 kW array over parking deck
Wisconsin’s First Community Wind Project 5 MW (2 turbines) Cashton Greens Cashton, WI June 2012
Sweet Earth Farm Soldiers Grove 14.7 kW Full Spectrum Solar June 2012
Port of Milwaukee Wind Turbine Northwind 100 kW Installer: Kettle View RE May 2012
SC Johnson Wind Turbines Mt. Pleasant (Racine County) 3 MW, 2 turbines, Dec. 2012 Behind the meter
Renewable Energy Policy Successes 1999 -2009 • 1999 - Focus on Energy RE/Initial RE Standard • 2002 – We Energies Renewable Energy Commitment • 2006 - Strengthened RE Standard (10% by 2015) • 2006 – Strengthened Focus on Energy • 2006 – State of Wisconsin RE Purchase Requirement • 2009 – Wind Energy Siting Law
Renewable Energy Policy Reversals 2010 - 2013 • Clean Energy Jobs Act Goes Down the Tubes • Legislature Slashes 2012 Focus Budget By 20% • We Energies Abruptly Terminates RE Program • PSC Suspend RE Incentives (2011), Then Restricts Solar Incentives (2012) • Legislature Waters Down RES w/ Canadian Hydro • Legislature Suspends Wind Energy Siting Rule • PSC Jacks Up Green Power Premiums • PSC Rejects Highland Wind Farm
Institutional, Economic and Cultural Challenges Abound • Natural gas prices project illusion of cheap energy • WI utilities in denial about coal’s liabilities • Electricity sales are stagnant • WI utilities have not figured out how to make solar work for them.
Solar Energy Power AssociationWashington, D.C. – On March 1, 2013, Georgia Power launched its Advanced Solar Initiative to grow solar resources in the state by opening the application process for distributed solar generation. The Georgia Public Service Commission approved the program in November 2012, allowing the southeastern utility to acquire 45 MW of solar capacity via distributed generation and 60 MW via competitive RFP in both 2013 and 2014. When fully implemented, Georgia will benefit from an additional 210 MW of clean solar power under long-term contracts.
A Frank Appraisal of Wisconsin’s Political Environment • Firmly entrenched one-party control • Ideology shaping policy, fueled by corporate $$$ and ALEC to manufacture grievances • Only U.S. state that has a realtors association opposed to windpower • Clean energy an orphan in this milieu
Kewaunee v. WI RES • 6% of total WI generation now • 4.2 billion kWh/yr now • Zero carbon generation • 6% of total WI sales by 2015 (really 2018) • 3.7 billion kWh/yr now • Low to zero carbon generation Kewaunee’s retirement will effectively negate the clean air and CO2 reduction benefits leveraged by Wisconsin’s Renewable Electricity Standard
MIDWEST ENERGY NEWS March 4, 2012 Commentary: Wisconsin legislature weighs nuclear option for renewables AB 34 introduced to allow nuclear to count towards Wisconsin’s 10% renewable requirement by 2015 “Only in Wisconsin will you find lawmakers who treat renewable energy as though it were radioactive.” http://www.midwestenergynews.com/2013/03/04/commentary-wisconsin-legislature-weighs-nuclear-option-for-renewables/
Minnesota v. Wisconsin Has 25% RES by 2025 2013 bills • Increase RES to 40% by 2030 (soon to be introduced) • Establish a 10% solar standard by 2030 • Has 10% RES by 2015 2013 bills • Decrease RES to 2011 levels (8.88%) • Count nuclear toward 10% requirement • Allow municipalities to opt out of wind siting rule
This is Economic Development? • Wind, solar and biogas are eligible for federal tax credits and grants. By propping existing fossil fuel infrastructure at the expense of new clean energy development, Wisconsin is effectively: LEAVING MONEY ON THE TABLE! (e.g., U.S. Army’s $7 billion RFP for clean energy, which completely bypassed Wisconsin)
Pivot and Change Direction Seek out approaches that: • Empower customers to host RE • Help customers purchase local RE (credits) • Take advantage of the solar ITC in effect thru 2016 • Appeal to businesses • Sidestep utility programs and infrastructure • Affirm customer rights re: use of property
Clean Energy Choice(a/k/a 3rd Party Power Purchase Agreements) • Current ambiguities in public utility law interfere w/ customers’ ability to access clean energy produced on their premises. • What is needed is a policy that allows customers to contract w/ third party system owners and acquire the benefits of on-site renewable energy production either through lease arrangements or power purchase agreements (PPA’s)
Why Clean Energy Choice? • No up-front capital required from host customers • Allows nonprofit entities to partner w/ for-profit companies that can use the 30% federal tax credit • Could lower energy costs for customers over the contract life • Hugely successful in states that allow it (e.g., California and Colorado) • It’s your premises, after all
3rd-Party Solar PV Power Purchase Agreements (PPAs) www.dsireusa.org / April 2012 UT: limited to certain sectors VA: see notes AZ: limited to certain sectors At least 21 states + PR authorize or allow 3rd-party solar PV PPAs Authorized by state or otherwise currently in use, at least in certain jurisdictions within in the state Apparently disallowed by state or otherwise restricted by legal barriers Puerto Rico Status unclear or unknown Note: This map is intended to serve as an unofficial guide; it does not constitute legal advice. Seek qualified legal expertise before making binding financial decisions related to a 3rd-party PPA. See following slides for additional important information and authority references.
Top Solar Hosts – A Comparison HostSolar Capacity (in MW) Walmart 65 Kohl’s 42 Costco 39 IKEA 21 Macy’s 16 All of Wisconsin 13
SOLAR GENERATING CAPACITY COMPARISONWISCONSIN VS. TOP EIGHT STATES Ranked by Grid-Connected Cumulative Installed Capacity Through 2011 1 Capacity as of August 2012 Tables appear in U.S. Solar Market Trends, Interstate Renewable Energy Council, August 2012. Wisconsin data provided by RENEW
We Have Sponsors! • Assembly - Gary Tauchen (R-Bonduel) - Chris Taylor (D-Madison) • Product thus far – a revised bill draft (v.5) reflecting substantial input from CEC Working Group • Both sponsors committed to a bipartisan approach • Senate sponsor(s) yet to be identified
What the Bill DraftDoes • Does allow 3rd party owners of RE systems located on a customer’s property to sell output directly to legal occupant of that property w/out being regulated as a “public utility” • Does qualify these systems for Focus on Energy incentives
Message Themes for Conservatives • Property rights • Customer choice • Local economic development • Let the market decide • No new mandates or taxes
Supporters So Far • City of Milwaukee • Johnson Controls • Helios USA • Wisconsin Farmers Union • Organic Valley Cooperative • Biogas companies (DVO, US Biogas) • WI Solar Energies Industry Association • WI Council of Churches (Stewardship Comm’n)
Local Institutions Taking the Lead WI Companies/Municipalities/Schools Supporting On-Site Renewable Energy Installations Epic Systems Johnson Controls Organic ValleySC Johnson Orion Energy Services Wigwam Mills Dane County City of Beaver Dam UW-Oshkosh Kohl’s Dept. Stores GundersenHealth Systems Fort Atkinson Schools
It’s Time to Retake the Initiative! • Support businesses that invest in home-grown renewable energy • Become a renewable energy producer or purchaser of locally produced renewable energy credits (see RENEW booth for details) • Join RENEW and stay engaged on our 3rd-party contracting initiative
Michael VickermanProgram and Policy Director 608.255.4044 mvickerman@renewwisconsin.orgwww.renewwisconsin.orghttp://renewwisconsin-blog.org/