Better Plan, Wisconsin

HOMEOWNERS GET SOME SUPPORT FROM COUNTY OFFICIALS

By Jeff Holmquist,

Source: New Richmond News, www.newrichmond-news.com

March 30, 2012 

About 20 residents of the Town of Forest attended last week’s St. Croix County Health and Human Services Board meeting to seek help in their fight against a wind farm proposal.

Forest resident Doris Schmidt told the board members that residents are concerned about possible health issues that may develop among those living close to the 41 wind turbines planned for the township.

She pointed to a turbine project near Green Bay (Brown County) that was installed by Emerging Energies LLC, the developer seeking to construct the Highland Wind Farm in Forest, as an example of what can go wrong when turbines are close to homes.

Brenda Salseg, Forest, said people living near a turbine often complained of headaches, sleep deprivation, anxiety and other health issues. Stray voltage, low-frequency sound and “flicker” from the moving shadow of the blades are among the impacts of wind energy on residents, she added.

“There is no doubt in my mind that there are health issues related to industrial wind turbines,” she said.

Resident Nicole Miller fought back tears as she talked about the possibility that her family’s life on a dairy farm could be disrupted by a wind farm coming in.

“We don’t know if we can afford to move,” she told the board. “We don’t know if we can afford to stay. Any support you could give us would be wonderful.”

Salseg said the Town of Forest was targeted by Emerging Energies because the municipality is not governed by St. Croix County zoning rules. Now the developer wants to squeeze in a bunch of turbines in a relatively small area, impacting residents for miles around, she told the board.

State siting rules allow for a turbine to be placed within 1,250 feet of a residence. Salseg noted that some research indicated that such turbines should be as much as 2,000 feet away from a home.

According to Salseg, there are 21 landowners in the township who have agreed to have turbines placed on their property. That’s a small percentage of the 170 families and 215 households currently in the Town of Forest, she noted.

Forest resident LaVerne Hoitomt said there are places across the nation that make more sense for wind farms. Large tracts of land in states like North Dakota and Nebraska would allow for turbines to be placed well away from houses, he said.

A wind farm in a densely populated place like the Town of Forest makes no sense, he added.

If the wind farm proceeds, Schmidt claimed, Forest residents would likely see a drop in their property values. Property rights would also be compromised, she said, as setbacks from turbines would likely limit what people can build on their properties.

County board member Esther Wentz added that county roads could be in jeopardy if the wind farm goes forward. County and town roads aren’t constructed to a high enough standard to withstand the beating they’d take while the wind farm would be constructed, she claimed.

Pete Kling, director of the county Zoning and Planning Department, said the county has little say when it comes to the placement of turbines in the Town of Forest. The county does have an existing tower ordinance which limits the height of towers to 200 feet, but it’s unclear if that ordinance would include wind turbines. The Forest project would include turbines that could reach almost 500 feet.

Although he had few encouraging words, Kling said county officials continue to research the matter.

“We hear you and we’re working with officials in the Town of Forest,” he said. “These are very complicated issues.”

Ed Thurman, environmental health specialist with St. Croix County, said studies on the health impact of wind turbines is inconclusive. Three studies have been done to date but additional studies are not likely, he said.

Thurman told the board that research seems to indicate that health impacts are “minimal,” so he suggested the officials not take a stand in the matter.

But board member Richard “Buzz” Marzolf said the residents did a good job of laying out their concerns and the Health and Human Services Board should back their efforts to derail the project.

“The research they’ve done is quite apparent,” he said. “I see no reason to delay.”

The board voted unanimously to support a four-part plan of action suggested by the Forest residents in attendance. The Health and Human Services Board, with the help of staff members, will send a letter of “official support” of a Brown County Board of Health resolution on behalf of the Town of Glenmore and the Town of Forest to the State of Wisconsin; file a “Letter of Declaration of Health Concerns” for the Town of Forest residents and residents within the project footprint with the Public Service Commission on PSC Docket 2535-CE-100; petition the state of Wisconsin to “authorize and execute third-party, non-biased health studies in existing wind energy project areas to determine why industrial wind turbines make some individuals sick;” and assist the Town of Forest and residents within the project footprint with a voluntary baseline population health assessment before and after should the Highland Wind project be permitted by the Wisconsin Public Service Commission.

The residents in the audience applauded following the vote.

“We’ll try to do anything we can to help you,” Wentz said.

After the majority of Forest residents left the meeting, St. Croix County Board Chairman Daryl Standafer told the board that he was “uncomfortable” with the action it took in the matter.

He said his family has had personal experience living near wind turbines and he is not aware of any health issues surrounding them.

“There are two sides to this issue,” he said.

In a telephone interview Monday, Jay Mundinger, founding principal of Emerging Energies, said recent studies indicate that there are no negative health effects of wind turbines near homes. He cited a recent Massachusetts study that there was no health impacts related to wind turbines.

Mundinger said the developer continues to work with state and federal regulators to ensure that the public’s health is not at risk.

He admitted, however, that the comments about health concerns are part of the public process and Emerging Energies welcomes the opportunity to answer any and all questions.

He added that the Highland Wind Farm is “rightly sited” because the turbines would be located in one of the least populated townships in St. Croix County.

PROPERTY VALUE LOSSES NEAR WIND TURBINES GREATER THAN PREVIOUSLY THOUGHT, APPRAISERS SAY

By Billie Jo Jannen,

SOURCE East County Magazine, eastcountymagazine.org

March 30, 2012 

The current study, released in July of 2011 by the Economic Financial Studies School of Business at Clarkson University, cites losses of up to 45 percent on properties located within 0.10 miles of new wind turbine facilities.

A real estate appraisal expert who has made a specialty of assessing impacts from nearby wind turbines has announced that he is revising his figures in response to a recent study of over 11,300 transactions near northern New York state turbine arrays.

Mike McCann of McCann Appraisal, LLC spoke at a Boulevard wind energy information meeting last winter and said property owners experience an average 25 percent value loss. At the time, he expected properties up to two miles away to experience value changes in response to turbine construction.

“I wish to refine my distance of forecast adverse value impacts to include at least three miles, should any 3 MW turbines be proposed by any of the developers in East County,” McCann said. “Furthermore, property value guarantees should extend to this greater range to reflect the nuisance and stigma effect of more powerful turbines on marketing of homes.”

The current study, released in July of 2011 by the Economic Financial Studies School of Business at Clarkson University, cites losses of up to 45 percent on properties located within 0.10 miles of new wind turbine facilities. This has prompted him to revise his loss figure upward to a maximum of 40 percent and expected adverse impacts out to three miles, with effects becoming less extreme with distance.

“The Clarkson study clearly shows value impacts out to three miles … and clearly shows the closer the turbine, the greater the impact,” McCann said.

A Department of Energy-funded study originally released in 2009 by Lawrence Berkeley National Laboratory, often cited by wind proponents, says property value impacts are negligible and that effect of what is known as “wind farm anticipation stigma” goes away after the turbines are built. The Berkeley results are divided into sale values for pre-announcement, post-announcement and post-construction time periods. The study may be flawed, however, as it leaves out some of the very properties that might provide the most telling results, McCann said.

In the study footnotes, Berkeley authors specified that land without homes, properties of over 25 acres, homes where the sale price was thought to deviate too far from the norm and 34 repeat sales were excluded from the study.

A co-author of the study, SDSU Economic Department Chairman Mark Thayer, defended the exclusions as appropriate from a statistical standpoint and said he feels the Clarkson study supports the Berkeley conclusion that negative value impacts go away after the projects are built.

The Clarkson study is based mainly on pre-construction figures, Thayer said: “There is no impact. Property values do not go down near turbines.”

However, real estate appraisers, which are closely regulated by the federal government, base their calculations on “comps,” or nearby sales of comparative properties. A licensed appraiser would not have the luxury of leaving out the properties omitted by Berkeley, McCann said, so the older study does not offer a realistic assessment of the value loss that would be suffered by neighbors of turbine arrays. Statistically appropriate or not, those sales would not be excluded from an appraisal.

“The fallacy of the Berkeley study is the assumption that value impacts must somehow be statistically significant against a data background of sales located 5 to 10 miles from turbines,” McCann said. “Had they focused on the 1/10th-mile to 3-mile range, I expect their findings would be significant to the homeowners who are losing 15 to 40 percent of their home equity and value.”

Neither of the studies consider time-on-market, McCann said, adding, “And what about the homes that don’t sell at all?” The latter do not show up on studies because there are no transaction records for them.

The size of the turbines being built is also a factor in McCann’s announcement, as almost all the data available is on older installations that contain smaller turbines. Increasingly, 3-megawatt machines are appearing on the landscape with concomitant increases in visibility and sound pressure. Sound is a “disamenity” often mentioned by wind farm neighbors, some of whom have abandoned their homes altogether because of the constant noise.

McCann is a proponent for property value guarantees in communities that are heavily impacted by wind turbine projects. Both the Boulevard and Jacumba planning groups have asked for property value guarantees as a condition for permitting large projects, as well as evidence-supported setbacks and protections in the noise ordinance to include low frequency and sub-audible effects. Both wind developers and the county have, so far, resisted addressing either.

Among the numerous energy projects proposed for the Boulevard area is Tule Wind, a 420-turbine project slated to be built along McCain Valley Road by Iberdrola Renewables. The turbines will range in size from 2MW to 2.5MW.

Asked why, if they are so confident of no impacts, wind developers wouldn’t offer value guarantees, Tule Wind project manager Jeffrey Durocher said the terms of some proposed guarantee programs are just too subjective.

Some proposals “… give the homeowner leeway to claim that any value loss is attributable to the presence of turbines, despite the possible effects of other factors,” Durocher said.

“It’s very difficult to get agreement among the various parties on what causes the value loss. To do that for a number of homes for an unspecified distance is pretty unmanageable,” Durocher said.

PROPERTY VALUE LOSSES NEAR WIND TURBINES GREATER THAN PREVIOUSLY THOUGHT, APPRAISERS SAY

By Billie Jo Jannen,

SOURCE: East County Magazine, eastcountymagazine.org 

March 30, 2012 

A real estate appraisal expert who has made a specialty of assessing impacts from nearby wind turbines has announced that he is revising his figures in response to a recent study of over 11,300 transactions near northern New York state turbine arrays.

Mike McCann of McCann Appraisal, LLC spoke at a Boulevard wind energy information meeting last winter and said property owners experience an average 25 percent value loss. At the time, he expected properties up to two miles away to experience value changes in response to turbine construction.

“I wish to refine my distance of forecast adverse value impacts to include at least three miles, should any 3 MW turbines be proposed by any of the developers in East County,” McCann said. “Furthermore, property value guarantees should extend to this greater range to reflect the nuisance and stigma effect of more powerful turbines on marketing of homes.”

The current study, released in July of 2011 by the Economic Financial Studies School of Business at Clarkson University, cites losses of up to 45 percent on properties located within 0.10 miles of new wind turbine facilities. This has prompted him to revise his loss figure upward to a maximum of 40 percent and expected adverse impacts out to three miles, with effects becoming less extreme with distance.

“The Clarkson study clearly shows value impacts out to three miles … and clearly shows the closer the turbine, the greater the impact,” McCann said.

A Department of Energy-funded study originally released in 2009 by Lawrence Berkeley National Laboratory, often cited by wind proponents, says property value impacts are negligible and that effect of what is known as “wind farm anticipation stigma” goes away after the turbines are built. The Berkeley results are divided into sale values for pre-announcement, post-announcement and post-construction time periods. The study may be flawed, however, as it leaves out some of the very properties that might provide the most telling results, McCann said.

In the study footnotes, Berkeley authors specified that land without homes, properties of over 25 acres, homes where the sale price was thought to deviate too far from the norm and 34 repeat sales were excluded from the study.

A co-author of the study, SDSU Economic Department Chairman Mark Thayer, defended the exclusions as appropriate from a statistical standpoint and said he feels the Clarkson study supports the Berkeley conclusion that negative value impacts go away after the projects are built.

The Clarkson study is based mainly on pre-construction figures, Thayer said: “There is no impact. Property values do not go down near turbines.”

However, real estate appraisers, which are closely regulated by the federal government, base their calculations on “comps,” or nearby sales of comparative properties. A licensed appraiser would not have the luxury of leaving out the properties omitted by Berkeley, McCann said, so the older study does not offer a realistic assessment of the value loss that would be suffered by neighbors of turbine arrays. Statistically appropriate or not, those sales would not be excluded from an appraisal.

“The fallacy of the Berkeley study is the assumption that value impacts must somehow be statistically significant against a data background of sales located 5 to 10 miles from turbines,” McCann said. “Had they focused on the 1/10th-mile to 3-mile range, I expect their findings would be significant to the homeowners who are losing 15 to 40 percent of their home equity and value.”

Neither of the studies consider time-on-market, McCann said, adding, “And what about the homes that don’t sell at all?” The latter do not show up on studies because there are no transaction records for them.

The size of the turbines being built is also a factor in McCann’s announcement, as almost all the data available is on older installations that contain smaller turbines. Increasingly, 3-megawatt machines are appearing on the landscape with concomitant increases in visibility and sound pressure. Sound is a “disamenity” often mentioned by wind farm neighbors, some of whom have abandoned their homes altogether because of the constant noise.

McCann is a proponent for property value guarantees in communities that are heavily impacted by wind turbine projects. Both the Boulevard and Jacumba planning groups have asked for property value guarantees as a condition for permitting large projects, as well as evidence-supported setbacks and protections in the noise ordinance to include low frequency and sub-audible effects. Both wind developers and the county have, so far, resisted addressing either.

Among the numerous energy projects proposed for the Boulevard area is Tule Wind, a 420-turbine project slated to be built along McCain Valley Road by Iberdrola Renewables. The turbines will range in size from 2MW to 2.5MW.

Asked why, if they are so confident of no impacts, wind developers wouldn’t offer value guarantees, Tule Wind project manager Jeffrey Durocher said the terms of some proposed guarantee programs are just too subjective.

Some proposals “… give the homeowner leeway to claim that any value loss is attributable to the presence of turbines, despite the possible effects of other factors,” Durocher said.

“It’s very difficult to get agreement among the various parties on what causes the value loss. To do that for a number of homes for an unspecified distance is pretty unmanageable,” Durocher said.

From Five Questions to Ask Before Signing a Wind-Energy Lease

Source: Corn and Soybean Digest

March 15, 2012

1. How will the lease affect my farming operation?

A commercial wind project needs about 60 acres of land per megawatt (MW). But only 3% of that area — roughly three acres — is occupied by turbines, substations and access roads. The rest is a buffer zone to preserve wind flow. The lease should clearly state your rights to use the land for farming, grazing, development of subsurface minerals, hunting or other uses, Jambor-Delgado says.

Despite a relatively small footprint, a wind project can significantly affect farm operations, efficiency and production, says Dwight Aakre, North Dakota State University Extension farm management specialist.

Turbines and access roads can change field configurations, disrupting row orientation and creating inconvenient end rows or land fragments inaccessible to large equipment.

Field-drainage patterns may be altered. Center-pivot irrigation systems can be blocked. On grazing land, fences, gates and cattle guards may have to be changed.

“Aerial crop spraying is often an issue,” Aakre says. In the north, snow plowing can cause headaches for growers. “Those access roads have to be kept open, and if the snow piles up in the field it can take a long time to melt in the spring, delaying or preventing planting.”

Farmers should raise agricultural-production issues in the initial contract talks, says Dean Retherford of Halderman Farm Management, Lafayette, IN. Retherford has helped negotiate leases for several wind projects in northwest and west-central Indiana, involving 39 wind turbines on farms he manages.

“We learned to request input on the location of roads,” Retherford says. “And the wind companies found that landowners were more of a help than a hindrance” in site decisions, he says.

The lease should clearly state how you will be compensated if land is taken out of production or crops, livestock, soil or other property are damaged during construction or operation. On one of the farms Retherford manages, for instance, a crane crushed half a mile of brand new 12-in. tile.

2. How long will the lease tie up my land?

Wind-power leases often last 50 years. The long lease period is necessary to give the developer time to earn a return on the huge up-front investment needed to build a wind farm.

The initial lease term is usually 25 years — the expected life of a turbine. Wind-power leases also include a renewal provision, extending the contract for another 20 or 25 years. The decision on whether to renew the lease is almost always the tenant’s exclusively, Ferrell says. “Landowners don’t have any say.” However, some leases may allow landowners to renegotiate the commercial terms at renewal time. “This is where collective bargaining is a very helpful tool.”

Wind leases will probably affect your estate plans, too, he adds, so it’s a good idea to include your heirs in the discussions.

3. What are my obligations under the lease?

The lease will prohibit you from doing anything that obstructs the flow of wind over the surface of your property.

This includes restrictions on the height and location of structures such as barns, grain bins, cell towers, even houses and trees. In some cases, Ferrell says, the lease may prevent you from improving your property without permission from the wind company. “If you have improvements planned for the property, get approval for them” before you sign the lease, he says.

That goes for drainage upgrades, too, says Retherford, the Indiana farm manager. Wind farms often include underground power lines. “If you’re thinking of installing pattern tile in the next 10 years or so, do it before the turbines come.” After the project is built, you will need advance permission to maintain or repair tile, he adds.

You must also avoid damaging the wind-power structures. Vehicular accidents, fires or other mishaps can result in big losses, which may not be covered by your personal and farm-liability policies, Aakre says.

You will probably need to buy additional insurance to satisfy your indemnification obligations, Ferrell says. “This is especially important if you lease the property to hunters.” He adds: Increased insurance requirements for the landowner should be factored into compensation negotiations.

 Likewise, the developer should indemnify you from damage claims arising from the tenant’s use of your land, Jambor-Delgado says.

Wind-power leases may also affect your obligations under other land agreements, she says. If the property has a mortgage, for example, you may need your lender’s consent to enter into a wind-company lease.

The lease should address the payment of debts secured by the land as well as placement of new liens on the property, she says.

Be wary of lease provisions that require you to personally obtain subordination agreements from your creditors, or that prevent you from using your land to secure future credit, Ferrell says.

A wind lease may also affect your eligibility for government farm programs, Jambor-Delgado says, so don’t sign a lease before checking with the appropriate agencies.

4. How will I be compensated?

Lease payments can be structured in many ways, including:

            •fixed payments based on acreage, towers or megawatt capacity;

            •royalty payments based on a percent of gross revenue;

            •or some combination.

All the wind-lease payments that Dean Retherfordhas negotiated are based on gross revenue per turbine. Each 1.5- or 3-MW turbine earns an annual royalty payment of $5,000 and $8,000, he says. The wind companies pay property taxes on the commercial facility, but not on the leased land.

Most wind-power leases today provide for similar royalties based on revenue, Ferrell says — typically 3-5% of gross earnings. The contract should clearly spell out how your payment will be calculated.

For example, if your royalty is 4% of gross revenue, how will gross revenue be defined? Does it include only the sale of electricity, or does it also include revenue from the sale of tax credits or renewable energy credits? Will your payment be based on revenue from the turbines on your land alone, or on average revenue for the entire wind farm? What can be subtracted from gross revenue? Can the wind-power company deduct for power lost during transmission or for periodic curtailments?

Leases that include a royalty should also set a minimum rent that will be paid whether or not the turbines are generating power for sale, Ferrell says. In addition, many royalty leases now include an “escalator” provision raising the royalty percentage at specified intervals. This arrangement can be a good deal for both the developer and the landowner, he says. During the early years of the project, the company can recover its initial costs faster. In later years, the landowner shares in a greater percentage of profits.

Royalty leases should always include an audit provision, Aakre says, which allows access to the company’s financial records “to verify the revenues produced by the wind farm.”

5. What happens when the project ends?

“A frequent fear of landowners is that the developer will default or dissolve, and the landowner will be left with huge, inoperable machines” littering the property, Ferrell says.

Such fears are not unfounded, Aakre says. “It’s a real risk.” North Dakota’s relatively weak reclamation law, for example, “permits turbines to stand idle so long that the company could be long gone.”

Your lease should provide for the removal of the wind farm structures and roads when the project is finished and restoration of the soils, Aakre says. The lease should outline your rights if the wind company doesn’t fulfill its obligation. Some agreements require a performance bond from the developer to ensure that money is available to pay for decommissioning.

Land reclamation is one of the most difficult parts of a wind-power lease negotiation, Retherford says. Although the towers have significant metal salvage value, they require specialized cranes to dismantle. And the massive foundations are expensive to remove.

“Each turbine has 40 yards of concrete in the foundation. One company wanted to grind the concrete down to 6 ft., but we negotiated removal down to 8 ft. so you could tile over it.” Benton County, IN, where the project is located, requires wind companies to deposit money in an escrow fund to pay for the reclamation, he adds.

Types of wind-power property agreements

There are several types of legal agreements that give developers access to your land and wind, says Jennifer Jambor-Delgado, a staff attorney at Farmers’ Legal Action Group, which has published a book on wind-power leases (www.flaginc.org). Farmers should keep in mind that “once you have a written agreement with a developer, that agreement controls” the rights and obligations of both parties, she says. “Any verbal agreements can’t be relied on if they are not written into the contract.”

Property agreements used to develop a wind farm include:

• Option: Gives the developer the right to lease the land at an agreed-upon price, subject to agreed-upon terms.
• Access Easement:Allows the developer to travel across your property and construct roads to reach turbine areas.
• Construction Easement: Gives access for construction of turbines and support equipment, as well as temporary “lay-down” areas for equipment and machinery storage.
• Transmission Easement: Allows developer to construct and operate underground and above-ground transmission lines and substations.
• Wind Non-obstruction Easement: You agree not to construct any improvements that could interfere with wind speed or direction.
• Overhang or Encroachment Easement: You agree to allow turbine blades to overhang your property, even if the turbine is not on your land.
• Noise Easement: You agree to allow a certain level of noise from the turbine.
• Covenant:Binds later purchasers of the land to abide by certain restrictions.
• Lease:Creates a landlord-tenant relationship for a set period of time allowing tenant the exclusive right to use the property. If the landowner wants to retain rights to use the land, such rights must be specifically stated.

Sources: Shannon Ferrell, Oklahoma State University; Windustry; Farmers’ Legal Action Group, Inc.

TURBINES CAUSED HEALTH PROBLEMS

www.htrnews.com

March 12 2012 

by Alyssa Ashley

Since I am not old enough to vote or sign a petition, I would like a chance to voice the truth. On May 8, 2011, I left my home in Glenmore, Wis., due to many health problems that are a result from the Shirley Wind Project built at the end of 2010.

Inside my home, I was able to detect when the turbines were turning on and off by the sensations in my ears. I could not hear or see the turbines at the time; I could feel them. In early 2011, I had been noticing extreme headaches, ear pain and sleep deprivation, all three things that were either a rarity for me, or nonexistent. This caused me to struggle with my school work. I could not concentrate due to pressure releasing from my head, or to the fact that I had very little sleep.

After staying away from my home for a week-and-a-half, my symptoms started to subside. I could sleep again, and my headaches were lessening. The longer I was away, the better I felt. Due to our turbine-related health issues, I spent all summer living in a camper with my family, away from the turbines.

At the end of August, my family reluctantly purchased another small house away from the wind turbines, leaving us paying two mortgages. I have not been in the Shirley area since Nov. 19, 2011, and I do not experience headaches anymore and I can sleep soundly.

My ears, however, are still sensitive to the cold and loud noises. This has never been a problem for me in my entire life, and I wonder if this damage to my ears will ever go away.

When contemplating wind turbine siting, think of me.

Alyssa Ashley

De Pere

SECOND FEATURE

BIRD CONSERVANCY SEEKS ENFORCEABLE WIND TURBINE STANDARDS

Bonner R. Cohen

SOURCE Heartlander, news.heartland.org

March 13, 2012 

The American Bird Conservancy has filed a 100-page petition with the U.S. Fish and Wildlife Service (FWS) requesting replacement of FWS’s proposed voluntary guidelines for operating wind farms with mandatory, enforceable standards designed to protect birds and bats from turbines’ deadly blades.

If FWS accepts the arguments laid out in the Bird Conservancy’s petition, wind farms will be subject to a mandatory permitting system and required to mitigate harm to birds and bats.

Massive Bird Kills

Although wind power supplies only 2 percent of electricity in the United States, FWS reports the wind turbines supplying that power kill 440,000 birds each year. Other analysts maintain the number is much larger because FWS may be overlooking a substantial number of birds that receive mortal wounds from turbine strikes but don’t die in the immediate vicinity of the machines, where FWS counts bird carcasses.

Two well-documented incidents in the mountains of West Virginia shed light on the magnitude of the problem. On a single night in September 2011, a single wind farm atop Mount Storm killed 59 birds. One month later, 484 birds were killed in a single night at the newly constructed wind farm on Laurel Mountain.

In these and other incidents across the country, birds of every description—hawks, bald eagles, golden eagles, the endangered California condor, yellow-billed cuckoos, wood thrushes, and other migratory birds—have lost their lives to wind farms.

Wind Farms Given Free Pass

Migratory birds may pose the biggest threat to the wind energy industry. To date, the Migratory Bird Treaty Act has not been applied to wind firms, but the potential liability could pose a real problem to the industry. The law does not require intent, meaning incidental kills could be prosecuted by the Justice Department.

The legal uncertainty over the potential liability of wind farms might make an FWS permitting process the lesser of two evils for the wind industry. Fearful a permitting process would lead to costly bureaucratic delays, the American Wind Energy Association (AWEA) has expressed a clear preference for FWS’s proposed voluntary guidelines. But a change of heart by the Justice Department leading to prosecution of owners of wind farms for incidental kills of migratory birds would cast a pall over the whole industry.

The industry has never been told it would not be prosecuted. Similarly, if endangered birds or bats are killed in sufficient numbers by wind farms so as to trigger lawsuits under the Endangered Species Act, the industry could be facing even greater uncertainty and costly litigation.

Congress Reconsidering Subsidies

Meanwhile, the wind industry, which has seen its political connections pay off in recent years, is facing a serious threat from another direction: Congress is losing its appetite for subsidizing renewable energy. The spectacular bankruptcy of solar panel maker Solyndra, with a loss of over $500 million suffered by U.S. taxpayers, has made Capitol Hill lawmakers wary of loan guarantees and other subsidies designed to prop up renewable energy ventures.

For years, the wind energy industry has benefited from, and indeed depended on, one such subsidy, known as the production tax credit (PTC). The PTC provides a 2.2 cents-per-kilowatt-hour subsidy for wind power generators for their first ten years of existence. In effect since 1992, the PTC could well expire at the end of this year. In working out a deal earlier this year on the extension of the payroll tax deduction, the House and Senate, despite heavy lobbying by AWEA, refused to include an extension of the PTC.

Without the PTC, the industry will be hobbled in its efforts to compete with cheaper coal and natural gas. With the growing likelihood of an expiration of the PTC at the end of the year, orders for new turbines have come to a screeching halt.

Wind Power’s Environmental Downside

“It’s about time that we look at the downside of alternative energies,” said Marita Noon, executive director of the Citizens’ Alliance for Responsible Energy.

“Since the theory of manmade climate change became fashionable, we’ve heard only that fossil fuels are bad and renewable energy is good,” said Noon. “The propaganda shows pictures of black smoke belching out of stacks contrasted with pristine, white, wind turbines. Neither reflects reality. The black smoke was cleaned up years ago. Wind turbines kill birds and bats.

“As Americans make energy decisions, they need to be based on reality, on complete science,” Noon explained. “There is no free lunch, and energy policy should fully weigh the pros and cons of each option.”