Better Plan, Wisconsin

WIND FARM PROPOSAL IS FIRST IN TWO YEARS

Doug Schneider/Press-Gazette, Clay Barbour, Wisconsin State Journal,

via www.greenbaypressgazette.com

December 27, 2011 

MADISON — Developers have applied to the Public Service Commission for a permit to build a large new wind farm in western Wisconsin, the first application of its kind in more than two years.

Emerging Energies applied this month to build Highland Wind Farm, a 41-turbine, 102.5-megawatt project in the St. Croix County towns of Forest and Cylon, about 25 miles east of the Minnesota border.

The application comes as new wind siting rules remain in limbo in the PSC, with officials trying to broker a deal between the wind industry and its critics.

William Rakocy, a founding member of Hubertus-based Emerging Energies, said his company understands there still is some uncertainty surrounding Wisconsin’s wind energy regulations, but he feels confident about the project.

“I guess we would like to believe that more reasonable minds will prevail,” he said.

Wind farms have been a contentious issue in Northeastern Wisconsin.

A proposed 100-turbine wind farm polarized Morrison and other southern Brown County communities before Invenergy LLC in March withdrew its plans to seek permits to develop the project. The company cited the state’s lack of siting guidelines in pulling the proposal, which would have put 54 turbines in Morrison and others in Glenmore, Holland and Wrightstown.

Residents around the hamlet of Shirley have complained that a smaller wind development there has reduced their property values, and has caused health problems for some people. The development’s owner insists that the wind farm complies with all laws.

Those concerns have prompted elected officials to be involved. State Sen. Frank Lasee, R-Ledgeview, this fall proposed a statewide ban on turbine construction until the state is in possession of a report that assures that they are safe.

Brown County Supervisor Patrick Evans last week called for the County Board to support the Wisconsin Citizens Safe Wind Siting Guidelines, a proposal that would establish limits for audible and low-frequency sound emissions, and set penalties for certain violations. A county committee will consider that request in January.

The new wind siting rules, more than a year in the making, were suspended just before going into effect in March. Those rules required wind turbines have a setback from the nearest property line of 1.1 times the height of the turbine, or roughly 450 feet. The rules also required turbines be no closer than 1,250 feet from the nearest residence.

Gov. Scott Walker proposed changes to those rules, pushing the setback from the property line — not just a dwelling — to 1,800 feet, or about a third of a mile. That legislation did not pass but did lead Republicans to ask the PSC to negotiate a new deal.

Those rules are for projects under 100 megawatts. The Highland project is larger and does not specifically fall under the rules under debate. But state law requires PSC officials to consider the yet-to-be approved rules when considering projects of greater than 100 megawatts.

This is only the beginning of the process, and the PSC has 30 days to determine if the application is complete. The agency has up to 360 days to make a decision.

Dan Rustowicz of Minnesota’s Redwind Consulting, a wind farm builder, said he is glad to hear about the application.

“That is a really good sign,” he said. “But we still need to get these rules resolved. Clarity is powerful.”

NEXT FEATURE

WIND POWER MARKET FACES TOUGH 2013

Via www.reuters.com

December 28 2011

The wind turbine market faces a difficult 2013 even if a U.S. incentive scheme known as the Production Tax Credit (PTC) is extended beyond its end-2012 expiry date, Denmark-based MAKE Consulting said in a research note.

Uncertainty about whether the tax credit will be extended or replaced with something else has led to a rushed 2011 and 2012 wind farm building cycle, while new development plans for 2013 have plummeted, MAKE said.

“The wind industry will see precipitous drops in 2013 installations without a PTC,” MAKE said in an abstract of a note for paying customers entitled, “U.S. market eyes policy cliff”.

“But even if a PTC is extended, the market impact is likely to be muted due to more challenging macro-economic conditions – basic demand conditions remain weak and natural gas futures remain low,” it said. “Even with a PTC, 2013 will not be the boom market of PTC years past.”

MAKE Consulting said that an analysis of publically announced orders for projects to be completed in 2012 showed the top-tier turbine manufacturers solidifying their market shares.

MAKE’s annual ranking list published in March this year showed Danish wind turbine maker Vestas clinging to its world market leadership with a 12 percent share, ahead of China’s Sinovel in second place and U.S. industrial giant GE in third.

Turbine prices have eroded steadily since 2008, but aggressive sales tactics may not be sustainable, MAKE said.

STUDY: FALMOUTH TURBINES HURT ABUTTER'S HEALTH

By SEAN TEEHAN,

Via Cape Cod Times, www.capecodonline.com

December 26, 2011 

FALMOUTH — A study released last week concludes wind turbines in Falmouth negatively affect abutters’ health.

The analysis was partially funded by a grant from Bruce McPherson, who opposes the Falmouth wind project and other turbine projects on Cape Cod. Its results assert that wind turbines cause “visceral” physical reactions and that sound waves from turbines are felt more intensely indoors than outside.

“We did not expect it,” said Stephen E. Ambrose, a Maine environmental sound consultant who co-authored The Bruce McPherson Infrasound and Low Frequency Noise Study.

Ambrose declined to release the amount he was paid but said he and a partner each spent about 800 hours on the study.

Ambrose and Robert W. Rand, who also specializes in sound studies, conducted their research over three days in April, Ambrose said.

The two former employees of Stone & Webster Inc., a Stoughton engineering firm that designs and builds power plants, have conducted peer reviews on acoustics from turbines for several towns in Massachusetts, Maine and Wyoming.

For this study, Ambrose and Rand lived in a house near Blacksmith Shop Road for three days while measuring pressure originating from infrasound. They documented the intensity of sound frequencies from a privately owned turbine in the Falmouth Technology Park and how their bodies responded to it. The turbine studied is roughly the size of Falmouth’s two municipal turbines.

When the two arrived at the house — located 1,700 feet from the turbine — on April 17, they began feeling effects within 20 minutes, according to the study. Both felt nausea, dizziness and anxiety, among other side effects.

They also reported having difficulty performing “normal activities” associated with the investigation, which included setting up instruments and observing measurements, the report states.

According to a chart included in the study, the discomfort and sick feelings intensified as wind speeds increased and the blades spun faster.

Previous sound studies that showed no negative health effects were done outdoors, Ambrose said. The recent study, which used low-frequency microphones to measure sound waves, showed sounds are more intense indoors than out. Data from this study showed a 10 dbG (a measurement for infrasound) increase outdoors and a 20 dbG increase indoors. The effect is similar to "living in a drum," he said.

An independent review of the acoustics data indicates it is scientifically valid, Nancy S. Timmerman, chairwoman of the Acoustical Society of America's Technical Committee on Noise, said in an email. She added that she can speak only to data on acoustics, not physiological effects reported in the study.

Jim Cummings, executive director of Acoustic Ecology Institute, another expert who looked at the study, said in an email the results could be a red flag on the correlation between infrasound and negative health effects, but more data are needed to establish proof.

"This is an indication, for sure, but a short sampling to base large claims on," Cummings wrote. "This and one other recent paper from the Association for Noise Control Engineers conference, Noise-Con, are both good indications that infrasound could be more problematic than generally assumed."

Falmouth Selectman Mary Pat Flynn, chairman of the board, said the study is one of many the board has received about wind turbines. Others show little or no harm caused by turbines, she said.

"We've had a number of studies sent to us, and they all have different points of view, and they all have different outcomes," Flynn said.

Ambrose and Rand's study comes as the state Department of Environmental Protection prepares itself for a sound study of the Falmouth-owned Wind 1 turbine. Environmental regulators agreed in September to conduct the study after Falmouth selectmen reached out to the department in September.

"It's still in the works, still under review," said Ed Coletta, a DEP spokesman. "We're hoping to get it done soon."

Last month selectmen announced the town would shut down the 1.64-megawatt Wind 1 — except during the tests — until April's town meeting. The town also plans to start up the Wind 2 turbine for 60 days, during which time officials plan to log complaints from residents.

The announcement came as a compromise after Wind 1 abutters filed a nonbinding town meeting article that asked selectmen to keep both turbines off until "mitigation options are fully explored and the existence of injurious conditions upon nearby residents can be qualified."

Wind 2, which has sat idle for about a year, could begin spinning for its trial period before mid-January, said Gerald Potamis, Falmouth's wastewater superintendent, who oversees the two municipal turbines.

Next month, Falmouth selectmen will choose a consultant to help advise the town on minimizing the impact of wind turbines on neighbors, Flynn said. Four firms were presented to selectmen during a meeting Dec. 19. The board will accept suggestions from residents until Jan. 4 and plans to choose one Jan. 9, Flynn said.

[Click here for Ambrose and Rand's study.]

Next Feature:

GROUP TARGETS WIND FARMS: ADVOCATES WANT STRICTER RULES TO PREVENT BIRD DEATHS

by Cody Winchester,

VIA www.argusleader.com 

December 26, 2011 

“Developers typically build at the site they’ve chosen, regardless of wildlife concerns,” she said. “We’ve written letters stating the proposed location is likely to have high wildlife impacts … but the projects were constructed (anyway).”

As the Obama administration moves on a plan to speed permitting of wind projects in the Great Plains, a major bird conservation group is asking the government to enact stricter standards for wind energy development.

The American Bird Conservancy has formally petitioned the Department of the Interior to develop mandatory siting rules for wind projects, claiming that existing guidelines, which are voluntary, constitute a “counterproductive and almost certainly unlawful approach” to enforcing the Migratory Bird Treaty Act.

“Most wind energy projects that are already in operation are in ongoing violation” of the act, since most birds killed at wind farms are protected, the petition says. The conservancy group alleges a “systemic failure” by the U.S. Fish and Wildlife Service to enforce the law.

The conflict highlights an ongoing tension between conservationists and a rapidly expanding industry seen as the linchpin of a clean energy future – although the petitioners also note that climate change driven by the combustion of fossil fuels “indisputably poses an unprecedented threat to species and ecosystems.”

Fueling the conflict is territory overlap: Windy corridors that are prime candidates for energy projects also tend to be migratory flyways. With the growth of the industry in wind-rich states such as South Dakota, conservationists are worried not only about collisions with turbines and power lines but further fragmentation of a habitat already under pressure from urban and agricultural expansion.

“There are impacts beyond the towers sticking up out there,” said K.C. Jensen, an associate professor of wildlife management at South Dakota State University.

Federal officials have worked for years to develop siting standards for wind projects and earlier this year released a set of draft guidelines. As the guidelines evolved, the American Wind Energy Association, a trade group, accused Fish and Wildlife of trying to “impose new guidelines that are not based on sound science.” But the American Bird Conservancy says the guidelines were in fact crippled by pressure from a federal advisory board dominated by industry.

“At first we were optimistic,” said Kelly Fuller, the conservancy’s wind campaign coordinator. “But over the last year, our view has changed. We have seen drafts of the guidelines repeatedly weakened under industry pressure. We’ve seen Fish and Wildlife Service abandon much of what its own scientific experts wrote, and so we felt that we now have to respond to this worsening situation.”

The group wants the rules strengthened and made mandatory, so wind developers would have to obtain a permit that specifically considers the project’s effects on migratory birds before beginning construction.

Such a permitting scheme would give the industry greater certainty, since wind developers are technically in violation of federal law every time a migratory bird is killed at a wind installation, said Shruti Sharesh, an environmental lawyer who filed the petition on behalf of the conservancy.

“On the one hand, we have the federal government promoting wind industry,” Sharesh said. “And on the other hand, we have a situation where both the government and the industry is well aware … (of) widespread violation of federal wildlife law.”

But Ron Rebenitsch, executive director of the South Dakota Wind Energy Association, argued that the opposite is true. He said new regulations would create greater uncertainty and make it more difficult to plan wind projects, which already require significant up-front financing and can take years to approve.

“This is not a good thing for wind,” he said. “I would be very cautious about how the rules are developed.”

The industry takes pains to minimize harm to wildlife, Rebenitsch said, adding that concerns about bird strikes are overblown.

“There has never been a recorded instance of a whooping crane impacting a turbine,” he said. “A whooping crane could fly into a building. … Do you shut down the industry (for the sake of birds)? That’s a very real concern.”

Rebenitsch said the number of birds killed at wind farms is inconsequential compared with the number killed by cats, windows and other causes related to human activity.

Fish and Wildlife already has a mechanism for permitting “take” of threatened and endangered species under the Endangered Species Act and other federal laws, but not for migratory birds.

The conservancy group says this “legal anomaly,” coupled with the lack of enforcement by Fish and Wildlife, is unfair: Oil companies are prosecuted under the Migratory Bird Treaty Act when birds fly into oil sump pits and die, the group argues. Why should wind energy be exempt?

Developers ‘build where they want’

On its website, the South Dakota Wind Energy Association urges developers to “consult the environmental and cultural offices in the state as early as possible” and provides contact information for each office.

But this doesn’t always happen, said Natalie Gates, a biologist in the migratory bird program at the U.S. Fish and Wildlife ecological services field office in Pierre.

Sometimes, developers contact Gates about a new wind project as a courtesy. Most of the time, however, she hears about proposals from other federal agencies that need input on how the project would affect endangered species.

“Some developers are more conscientious than others,” she said. “Some work with us a little and some ignore us entirely. All tend to build where they want.”

Once her office knows where the company intends to build the project, Gates sends a comment letter outlining the agency’s concerns about habitat and wildlife populations, and typically she requests that the company undertake a baseline study of birds and bats in the area.

“Sometimes when I write a letter like that, I never hear back from the company,” she said.

Some companies hire consultants to collect pre- and postconstruction figures on bird and bat mortality, and this data can be helpful to wildlife agencies, Gates said. But a suggestion to avoid sensitive habitat “seems to get no traction with developers,” she said.

“Developers typically build at the site they’ve chosen, regardless of wildlife concerns,” she said. “We’ve written letters stating the proposed location is likely to have high wildlife impacts … but the projects were constructed (anyway).”

South Dakota Game, Fish and Parks also has guidelines for wind projects, and the agency’s wildlife biologists have provided expert testimony at hearings before the South Dakota Public Utilities Commission, which issues siting permits for wind projects.

The commission carefully considers the input of wildlife experts when issuing rulings and crafting permit conditions, PUC Chairman Gary Hanson said.

Hanson, who has served on the governing board of the National Wind Coordinating Collaborative, is concerned about whooping crane numbers and would not necessarily oppose stricter federal guidelines for siting.

Fed’s plan would fast-track projects

The Interior Department, meanwhile, is developing a plan to fast-track wind projects in the Great Plains by allowing developers to go through the federal permitting process en masse.

The 200-mile-wide development corridor would follow the central flyway of the endangered whooping crane, which has a wild population in the low hundreds, from Canada to the Texas coast.

A consortium of wind energy companies, including Iberdrola Renewables and NextEra Energy Resources, which operate wind farms in South Dakota, would be granted incidental take permits in exchange for offsetting the losses with conservation efforts elsewhere. Fish and Wildlife still is hammering out the details.

—

Determining bird kill numbers a tough task

Estimates of birds killed at wind installations vary, and federal field agents face numerous obstacles in gathering accurate numbers.
“The (U.S. Fish and Wildlife Service) has no way of obtaining on a regular basis crucial information about birds and bats being killed at these projects,” said Shruti Sharesh, a lawyer at Meyer, Glitzenstein and Crystal, an environmental law firm .
The conservancy group partly blames this problem on confidentiality agreements between wind developers and private wildlife consultants, which can can make data sharing problematic.
In September, the Argus Leader submitted a Freedom of Information Act request to U.S. Fish and Wildlife asking for records of migratory birds killed by power lines or wind energy projects in South Dakota.
The agency returned a packet of investigative reports detailing 15 bird kills in North and South Dakota since 2008, all of them power line strikes.
This doesn’t mean there were no bird strikes or electrocutions prior to 2008, just that they weren’t necessarily entered into the agency’s computer system, said Rich Grosz, the resident agent in charge of the Office of Law Enforcement for the Dakotas.
Until recently, South Dakota had only one or two field agents, and Grosz said the agency is “completely dependent on the public” to notify it of bird electrocutions. In any case, further investigation may show that the bird died from other means, in which case the agency would not pursue an investigation.

WINDS OF CHANGE: WIND LEASE CONSIDERATIONS

Via RJL, attorneys-at-law

Author(s): Robert S. "Sam" Arthur, Jr., Justin H. Boyd
Published: 12/22/2011

Beware of a wind developer who attempts to include unnecessarily long evaluation periods or free extensions, as such lessee may be attempt­ing to stockpile potential wind sites, without any intent to develop and with the hope of assigning the leases to larger wind developers.

Colorado has become a leader in the wind energy industry. According to the American Wind Energy Association, our state is the third-highest wind energy generator in the United States. Farm­ers, ranchers, and other landowners should consider if their property is suitable for wind energy develop­ment and how such devel­opment could be integrated into the current uses of their land. Some major factors that impact the decision to enter into a wind lease are discussed in this article.

Power in Numbers

Owners of land in areas that are advanta­geous for wind farm development should consider joining forces. Increasing the acreage available for wind farm development will increase the land­owners' leverage when negotiating with a wind developer. Landowners in high wind-speed areas may wish to collectively engage an environmental consultant to determine the suitability of their land for wind development.

Factors that may increase the value of the lease opportunities include proximity to transmis­sion lines, local and state economic incentives, and the approval process of the local regulatory authority. Factors sometimes found in Colorado, which may decrease the suitability for wind devel­opment, include rocky or mountainous terrain and close proximity to federally protected lands. If neighbors join forces, in addition to enhancing their bargaining power, the evaluation costs can be spread among the collective group.

The Four Stages of Wind Development That Must Be Addressed in the Lease

Evaluation Stage – During this period, the wind developer studies the feasibility of the site for constructing wind turbines, evaluates environ­mental issues, determines the permitting process, and obtains the necessary financing. While the duration of this stage will vary, the landowner should attempt to limit this stage to a period that lasts no longer than three years. In addition, during this time the wind developer should be paying a guaranteed monthly or annual rent pay­ment. Beware of a wind developer who attempts to include unnecessarily long evaluation periods or free extensions, as such lessee may be attempt­ing to stockpile potential wind sites, without any intent to develop and with the hope of assigning the leases to larger wind developers.

Construction Stage – Assuming that the wind developer desires to proceed from the evaluation stage, the construction of the wind turbines will begin. The landowner should negotiate for a con­struction bonus that reflects the value of the site and also may be based on the number of turbines constructed. The wind developer should continue to pay the monthly or annual rent during this stage.

Operational Stage – Once the equipment has been installed, wind energy is produced and sold for profit to available markets. Generally, the landowner will receive a royalty or percentage of gross revenues received from the production of the wind energy. The landowner should negotiate the percentage of gross revenues that it receives to be increased every five or so years of the lease. While the percentage will vary from location to location, the landowner should be suspicious of any pro­posed royalty of 3 percent or less of gross revenues during the beginning period of the operational stage. Operations of the wind turbines can last anywhere from fifteen to fifty years.

Termination Stage – If the wind developer terminates the lease prior to even reaching the construction stage, the landowner should negoti­ate for a termination fee. Otherwise, the wind developer will have encumbered the landowner's property for the relatively low price of the monthly or annual rent, when the landowner could have been negotiating with another wind developer with the means to actually construct and operate the wind turbines. Assuming that the wind devel­oper does complete the operation stage, the lease will provide for the wind developer to "decommis­sion" the wind turbines. The landowner should receive some type of security, in the form of a bond or cash security deposit, to assure that the wind developer has an economic incentive to properly remove its equipment. The landowner should ensure that the wind developer removes its wind turbines and other equipment in an efficient manner, and leaves the land in a condition no worse than when the wind developer commenced construction.

Beware of the Landowners' Indemnifications

As with many legal agreements, parties often agree to mutually indemnify the other for any damage caused by their own acts or negligence. For example, if the wind developer breaks the farmer's fence or irrigation structures when install­ing its large equipment, the wind developer will fix and replace the damage; such repair or replace­ment costs could run into thousands of dollars. Conversely, imagine if the farmer's tractor runs into the wind turbine, which costs millions of dollars to replace. Such type of damage could force many farmers into bankruptcy. As a result, the landowner may wish to negotiate a maximum limit to its indemnification obligations, to account for the parties' potential economic risks.

Location of Wind Development, Reserved Uses, and Prohibited Uses

The landowner should expressly require the wind developer to refrain from development on or use of specific portions of the land if the cir­cumstances dictate. For example, the landowner may prohibit the wind developer from operating within 500 feet of a residence or within 25 feet of either side of a river or a creek that runs through the property. Most importantly, the lease should expressly reserve to the landowner the right to use his or her property for other uses, such as grazing, hunting, fishing, mineral exploration, or solar energy. In addition, the landowner may desire to reasonably restrict the access rights of the wind developer so as not to disrupt the landowner's peaceful enjoyment.

Taxes and Utilities

Upon construction of the turbines, the value of the property will increase. As a result, the county assessor likely will increase the property taxes assessed to the property. In addition, the utility costs on the property to operate the turbines will rise dramatically. The landowner should ensure that these increased costs incurred by the wind developer are passed on to the wind developer.

Assignment

As mentioned previously, some wind devel­opers desire to obtain numerous wind leases without ever intending to construct or operate wind turbines. Instead, their hope is to assign these wind leases to larger wind developers. As advised above, landowners should work with their neighbors and join forces to cut out this type of middleman, and they should attempt to present their own attractive opportunity to a large wind developer. As another protection, the individual landowner also should restrict the ability to assign the lease. At a minimum, the landowner should have some type of "reasonableness" standard in being required to consent to such assignment to ensure that the assignee has the same economic capacity to both construct and operate the wind development.

The above are just some of the major factors that landowners should consider before entering into a lease with a wind developer. The wind lease may provide attractive economic security; how­ever, given the long duration of these agreements, the landowners must ensure that their interests are protected. If you have any questions regarding wind-lease issues, please do not hesitate to contact Sam Arthur or Justin Boyd.

From Illinois

NO WELCOMING COMMITTEE FOR WIND FARMS: HAMILTON TOWNSIP AMONG COMMUNITIES IN OPPOSITION

BY DAVID GIULIANI,

Via www.saukvalley.com 

December 23, 2011 

“They wanted us to sign a 70-year contract,” Gonigam said. “That would affect my kids, grandchildren and great-grandchildren.”

WALNUT – Stacy Gonigam’s family decided against having wind turbines on their farm in southwestern Lee County.

Ireland-based Mainstream Renewable Power approached the family for its Green River wind farm, which is planned for Lee, Whiteside and Bureau counties.

Gonigam said she didn’t sign a contract with Mainstream because it would bind her family for a long time.

“They wanted us to sign a 70-year contract,” Gonigam said. “That would affect my kids, grandchildren and great-grandchildren.”

Gonigam also is the supervisor for Hamilton Township, population 236.

During the past summer, the township board voted unanimously for a comprehensive plan that recommended against the construction of wind turbines.

The township is not alone in its opposition. In the spring, the village board in Whiteside County’s Deer Grove, population 48, voted unanimously to regulate turbines within 1.5 miles of its boundaries. That was in response to news of Mainstream’s plans.

Now that Deer Grove has passed a zoning ordinance, the village has the right to ban wind farms in the areas near its borders, county officials say. Opposition to Mainstream’s proposal is strong in Deer Grove, so it’s doubtful the board will approve construction of turbines nearby.

While Hamilton Township’s comprehensive plan isn’t binding, it’s a statement against turbines, Gonigam said.

Sandy Cruse, a lifelong resident of Hamilton Township, said her survey found that 80 percent opposed wind turbines.

“Our area is recovered swampland,” said Cruse, whose family has a farm. “We’re 90 percent flood plain. It’s all supported by good drainage.

“We are stewards of the land, and we want to be good stewards. We’re all agricultural, and that’s what we would like to see.”

She feared that a wind farm would affect the drainage. She also said she and others don’t want the noise and shadow flicker associated with turbines.

Mainstream officials have pledged to be good neighbors, saying they want to reach out to residents.

Mainstream plans to put in 60 to 90 turbines in the first phase, the vast majority of which would be in Lee County. The second phase would include a similar number, officials say.

Last month, Whiteside County finished its review of its wind energy regulations. Officials decided against making changes.

Mainstream was expected to turn in its application to Whiteside County soon after that. But the company has yet to do so.

John Martin of Mainstream said his company is working on the application and expects to complete it soon.

The Lee County Zoning Board of Appeals has been meeting since the summer; it has recommended many changes to the existing ordinance.

On Thursday, the board will debate perhaps the biggest issue of all – the required distance between turbines and houses.

That should be the last major item of business.

The board’s recommendations will go to the full Lee County Board, which has the final say.

WHY THE WIND INDUSTRY IS FULL OF HOT AIR AND COSTING YOU BIG BUCKS

By Robert Bryce,

Via www.foxnews.com 

December 20, 2011

A review of the $9.8 billion in cash grants provided under section 1603 of the American Recovery and Reinvestment Act of 2009 (also known as the federal stimulus bill) for renewable energy projects shows that the wind energy sector has corralled over $7.6 billion of that money. And the biggest winners in the 1603 sweepstakes: the companies represented on AWEA’s board of directors.

The American Wind Energy Association has begun a major lobbying effort in Congress to extend some soon-to-expire renewable-energy tax credits. And to bolster that effort, the lobby group’s CEO, Denise Bode, is calling the wind industry “a tremendous American success story.”

But the wind lobby’s success has largely been the result of its ability to garner subsidies. And those subsidies are coming with a big price tag for American taxpayers. Since 2009, AWEA’s largest and most influential member companies have garnered billions of dollars in direct cash payments and loan guarantees from the US government. And while the lobby group claims to be promoting “clean” energy, AWEA’s biggest member companies are also among the world’s biggest users and/or producers of fossil fuels.

A review of the $9.8 billion in cash grants provided under section 1603 of the American Recovery and Reinvestment Act of 2009 (also known as the federal stimulus bill) for renewable energy projects shows that the wind energy sector has corralled over $7.6 billion of that money. And the biggest winners in the 1603 sweepstakes: the companies represented on AWEA’s board of directors.

An analysis of the 4,256 projects that have won grants from the Treasury Department under section 1603 over the past two years shows that $3.37 billion in grants went to just nine companies — all of them are members of AWEA’s board. To put that $3.37 billion in perspective, consider that in 2010, according to the Energy Information Administration, the total of all “energy specific subsidies and support” provided to the oil and gas sector totaled $2.84 billion. And that $2.84 billion in oil and gas subsidies is being divided among thousands of entities. The Independent Petroleum Association of America estimates the US now has over 14,000 oil and gas companies.

The renewable energy lobby likes to portray itself as an upstart industry, one that is grappling with big business and the entrenched interests of the hydrocarbon sector. But billions of dollars in 1603 grants – all of it exempt from federal corporate income taxes – is being used to fatten the profits of some of the world’s biggest companies. Indeed, the combined market capitalization of the 11 biggest corporations on AWEA’s board – a group that includes General Electric and Siemens — is about $450 billion.

Nevertheless, the clock is ticking on renewable-energy subsidies. The 1603 grants end on December 31 and the renewable-energy production tax credit expires on January 1, 2013. On Monday, AWEA issued a report which predicted that some 37,000 wind-related jobs in the US could be lost by 2013 if the production tax credit is not extended.

But the subsidies are running out at the very same time that a cash-strapped Congress is turning a hard eye on the renewable sector. The collapse of federally backed companies like solar-panel-maker Solyndra and biofuel producer Range Fuels, are providing critics of renewable subsidies with plenty of ammunition. And if critics need more bullets, they need only look at AWEA’s board to see how big business is grabbing every available dollar from US taxpayers all in the name of “clean” energy. Indeed, AWEA represents a host of fossil-fuel companies who are eagerly taking advantage of the renewable-energy subsidies.

Consider NRG Energy, which has a seat on AWEA’s board. Last month, the New York Times reported that New Jersey-based NRG and its partners have secured $5.2 billion in federal loan guarantees to build solar-energy projects. NRG’s market capitalization: $4.3 billion.

But NRG is not a renewable energy company. The company currently has about 26,000 megawatts (MW) of generation capacity. Of that, 450 MW is wind capacity, another 65 MW is solar, and 1,175 MW comes from nuclear. So why is NRG expanding into renewables? The answer is simple: profits. Last month, David Crane, the CEO of NRG, told the Times that “I have never seen anything that I have had to do in my 20 years in the power industry that involved less risk than these projects.”

Or look at E.On, the giant German electricity and natural gas company, which also has a seat on AWEA’s board of directors. In 2010, the company emitted 116 million metric tons of carbon dioxide an amount approximately equal to that of the Czech Republic, a country of 10.5 million people. And last year, the company – which has about 2,000 MW of wind-generation capacity in the US — produced about 14 times as much electricity by burning hydrocarbons as it did from wind.

Despite its role as a major fossil-fuel utility, E.On has been awarded $542.5 million in section 1603 cash so that it can build wind projects. And the company is getting that money even though it is the world’s largest investor-owned utility with a market capitalization of $45 billion.

Another foreign company with a seat on AWEA’s board: Spanish utility Iberdrola, the second-largest domestic wind operator. But in 2010, Iberdrola produced about 3 times as much electricity from hydrocarbons as it did from wind. Nevertheless, the company has collected $1 billion in section 1603 money. To put that $1 billion in context, consider that in 2010, Iberdrola’s net profit was about 2.8 billion Euros, or around $3.9 billion. Thus, US taxpayers have recently provided cash grants to Iberdrola that amount to about one-fourth of the company’s 2010 profits. And again, none of that grant money is subject to US corporate income taxes. Iberdrola currently sports a market cap of $39 billion.

Another big winner on AWEA’s board of directors: NextEra Energy (formerly Florida Power & Light) which has garnered some $610.6 million in 1603 grants for various wind projects. NextEra’s market capitalization is $23 billion. The subsidies being garnered by NextEra are helping the company drastically cut its taxes. A look at the company’s 2010 annual report shows that it cut its federal tax bill by more than $200 million last year thanks to various federal tax credits. And the company’s latest annual report shows that it has another $1.8 billion of “tax credit carryforwards” that will help it slash its taxes over the coming years.

The biggest fossil-fuel-focused company on AWEA’s board is General Electric, which had revenues last year of $150 billion. Of that sum, about 25 percent came from what the company calls “energy infrastructure.” While some of that revenue comes from GE’s wind business, the majority comes from building generators, jet engines, and other machinery that burn hydrocarbons. The company is also rapidly growing GE Oil & Gas, which had 2010 revenues of $7.2 billion. GE Oil & Gas has more than 20,000 employees and provides a myriad of products and services to the oil and gas industry.

GE has a starring role in one of the most egregious examples of renewable-energy corporate welfare: the Shepherds Flat wind project in Oregon. The majority of the funding for the $1.9 billion, 845-megawatt project is coming from federal taxpayers. Not only is the Energy Department providing GE and its partners – who include Caithness Energy, Google, and Sumitomo — a $1.06 billion loan guarantee, as soon as GE’s 338 turbines start turning at Shepherds Flat, the Treasury Department will send the project developers a cash grant of $490 million.

On December 9, the American Council on Renewable Energy issued a press release urging Congress to quickly extend the 1603 program and the renewable-energy production tax credit, because they will “bolster renewable energy’s success and American competitiveness.”

But time is running short. Backers of the renewable-energy credits say that to assure continuity on various projects, a bill must be passed into law by March 2012. If that doesn’t happen, they are predicting domestic investment in renewable energy could fall by 50 percent. A bill now pending in the House would extend the production tax credit for four additional years, through 2017. The bill has 40 sponsors, 9 are Republicans. The bill is awaiting a hearing by the House Ways and Means Committee.

Robert Bryce is a senior fellow at the Manhattan Institute. His latest book is Power Hungry: The Myths of “Green” Energy and the Real Fuels of the Future.

From Massachusetts

MOVING TOWARD CONSENSUS ON TURBINES

By CHRISTOPHER KAZARIAN,

Source: Falmouth Enterprise,

December 20, 2011 

In the Weston & Sampson report the cost for decommissioning the turbines and taking them down is estimated to be $700,000, with on-site storage adding $30,000 to that figure. The monthly maintenance fee for the turbines would be $4,500 a month.

The town could, under the proposal, possibly realize as much as $600,000 for the two turbines, if it were to resell them. If a buyer cannot be found, salvage value of the machines would provide the town with much less revenue, an estimated $102,000.

Earlier this year Falmouth hired a consultant to determine if the town could reach consensus with residents on how to deal with the problems of the town-owned wind turbines at the Wastewater Treatment Facility. That consultant, Edith M. Netter of Waltham, concluded that, despite the acrimony over the turbines, a consensus was achievable.

Last night selectmen moved forward with that approach by accepting advice from the Massachusetts Clean Energy Center, which is recommending four firms to facilitate that next step. Those firms, which the state agency selected after issuing a Request for Qualifications, are CLF Ventures of Boston; the Consensus Building Institute of Cambridge; the Meister Consulting Group of Boston; and Raab Associates of Boston.

The Clean Energy Center has provided a review of the firms to selectmen, noting which were best suited for facilitating the process of building consensus on how to deal with the town’s two wind turbines. Selectmen will not make a decision on those firms until their next meeting on Monday, January 9.

Chairman of the Falmouth Board of Selectmen Mary (Pat) Flynn asked for public input on the four finalists to help in choosing the one that will be responsible for facilitating the process of how to select the mitigation option most suitable for the town. The options before selectmen are: to decommission the two turbines; to relocate the turbines elsewhere in town; to make specific changes to the operation of the turbines; or to mitigate the homes impacted by the machines. Weston & Sampson has concluded its analysis of these options, and that report will be posted on the town’s website, under the selectmen’s section, later today.

Residents can also find information related to the four firms the Clean Energy Center is recommending for facilitation here, as well. Nancy A. Hayward of Chase Road, West Falmouth, later asked that a copy of the report also be made available to residents in the Falmouth Public Library’s reference department. The board agreed to her request.

In the Weston & Sampson report the cost for decommissioning the turbines and taking them down is estimated to be $700,000, with on-site storage adding $30,000 to that figure. The monthly maintenance fee for the turbines would be $4,500 a month.

The town could, under the proposal, possibly realize as much as $600,000 for the two turbines, if it were to resell them. If a buyer cannot be found, salvage value of the machines would provide the town with much less revenue, an estimated $102,000.

In addition, Weston & Sampson predicted the town would be responsible for repaying the Massachusetts Renewable Energy Trust the roughly $1 million it received in Renewable Energy Credits for the energy produced by the turbines from 2015 to 2029.

Falmouth would have to cover its debt obligations for the pur- chase of the wind turbines. In the report the town would pay $6.88 million in debt for Wind 1. With relocation Weston & Sampson has estimated the town would require an additional $4.48 million investment. Of that amount roughly $1.5 million would go toward decommissioning of the turbines as well as permitting and site preparation. The remaining money would be needed to cover actual construction costs.

If the town elects to keep the turbines in their current location, it could elect to modify a handful of abutters’ homes. Weston & Sampson mentioned nine homes—four on Blacksmith Shop Road, four on Ambleside Drive and West Falmouth Highway—that were closest to Wind 1 and Wind 2 as ones that should be strongly considered, based upon inspection last month by Harris Miller Miller and Hanson. With proper sound insulation and, in six cases, installation of central air-conditioning, the town would pay roughly $360,000 to modify those nine homes. To extend that strategy to the 25 closest homes would cost Falmouth roughly $1 million.

Another option could be noise barriers, although Weston & Sampson noted that these are not only rare, but also expensive and would require the removal of a number of trees in the area.

As an example of the significant cost of the noise barriers Weston & Sampson estimated that to construct a 41-foot high one to protect the four closest homes to Wind 1 would cost anywhere between $1 million and $2 million. Some of the modfications to the turbine include making operational changes to limit shadow flicker, which is estimated to cost $15,000 per turbine.

Once a facilitator is selected by the board, Ms. Flynn said the neutral consultant would meet with groups of 20 to 40 citizens in confidential interviews or focus groups during the month of January. The purpose of those meetings, Ms. Flynn said, will be to clarify community views on the proposed options in the Weston & Sampson report.

And it would help determine what process, if any, would work to bring people together to discuss mitigation strategies for the wind turbine. If such a process is feasible, selectmen would be apprised of that in the beginning of February by whatever firm is selected to facilitate the consensus-building approach. Over the next two months the board would then work with the public before making a recommendation to Town Meeting in April about how to proceed with the town-owned wind turbines.

FROM THE PUBLIC SERVICE COMMISSION OF WISCONSIN

FOR IMMEDIATE RELEASE
December 19, 2011

[Download a copy of this document by clicking here]

Highland Wind Farm, LLC Files CPCN Application with Public Service Commission

Madison, WI—The Public Service Commission of Wisconsin (Commission) has received an application from Highland Wind Farm, LLC to build a 102.5 megawatt wind project located in the townships of Forest and Cylon, St. Croix County, Wisconsin.

When the application is deemed complete, the Commission will have up to 360 days to make a decision on the application.

An electric generation project of 100 megawatts (MW) or greater requires a Certificate of Public Convenience and Necessity (CPCN) from the Commission.

The Commission has siting jurisdiction over all wind energy systems 100 MW or larger and over utility-owned wind energy systems, regardless of size.

A political subdivision (city, town, village, or county) has siting jurisdiction over non-utility wind energy systems smaller than 100 megawatts.

2009 Wisconsin Act 40 made several changes to the state statutes regarding the siting of wind energy systems.

The law retained the jurisdictional split between the Commission and political subdivisions; directed the Commission to write wind siting rules; and stated that a political subdivision may not impose requirements that are more restrictive than those in the Commission’s wind siting rules.

In response, final Wind Siting Rules promulgated by the Commission (PSC 128) were published in the Wisconsin Administrative Register on February 28, 2011, to be effective March 1, 2011.

Currently the rules are not in effect due to legislative suspension.

The Commission and interested parties are currently working to resolve concerns regarding wind siting for non-utility projects under 100 MW.

Because Highland Wind Farm, LLC has planned a project surpassing the 100 MW threshold, the project application will be treated like any other CPCN application received by the Commission; however, the Commission is also statutorily required to “consider whether installation or use of the facility is consistent with the standards specified in the rules promulgated by the commission under Wis. Stats. §196.378 (4g) (b),” meaning the Commission will need to at least consider whether the application is consistent with
the standards in the promulgated, yet suspended, PSC 128 rules.

Once the Commission receives all pieces of an application, the Commission has 30 days to determine whether the application is complete. After a CPCN application is deemed complete, the Commission urges the public to take advantage of the many opportunities to weigh in.

The public is encouraged to read the Commission’s public notification letter, verify interested parties are included on the Commission mailing lists, review the application posted online, ask questions of the Commission staff, submit comments, and testify at hearings.

Information can be found at the Commission’s web site, http://psc.wi.gov, and at local libraries, government offices, clerks’ offices, and within the environmental review documents that will be prepared for the project.

Wis. Stats. § 196.491 describes the procedures related to the issuance of a CPCN. The general application requirements for the CPCN are described in Wis. Admin. Code ch. PSC 111.

An overview of a typical application review process can be found at: http://psc.wi.gov/thelibrary/publications/electric/electric03.pdf.

Documents associated with the Highland Wind Farm application can be viewed on the PSC’s Electronic Regulatory Filing System at http://psc.wi.gov/. Type case numbers 2535-CE-100 in the boxes provided on the PSC homepage, or click on the Electronic Regulatory Filing System button.

From Minnesota:

WIND COMPANY SUING BELLE CREEK TOWNSHIP

By Regan Carstensen

SOURCE: The Republican Eagle, www.republican-eagle.com

December 17 2011 

Belle Creek Town Board Chair Chad Ryan was served papers Thursday night, informing him that AWA Goodhue was suing Belle Creek Township for “declaratory judgment” and “injunctive relief.”

The Belle Creek Town Board adopted a one-year moratorium in June 2010 to prevent any development, siting or construction of a wind project within the township while the board completed various planning activities. The moratorium was extended in May 2011 to last 120 days later than the date AWA Goodhue completed the permitting process for its 78-megawatt wind farm in Goodhue County — much of which lies in Belle Creek Township.

According to state statute 216F.07, the site permit that was issued for AWA Goodhue by the Minnesota Public Utilities Commission in June was the only approval the wind company needed to obtain for the location of its project.

AWA Goodhue attorneys argued in the summons served to Ryan that AWA Goodhue is entitled to a declaratory judgment that the permit pre-empts and supersedes the township’s effort to regulate the project with a moratorium.

The summons also says that AWA Goodhue “will potentially suffer irreparable harm” if Belle Creek is allowed to interfere with its rights under the site permit to proceed with developing the project, and attorneys argue that the wind company is entitled to an injunction preventing the township from any such interference.

Belle Creek Town Board has 20 days from the date papers were served to provide a written response to the compliant. If no response is filed in that time, the board will not get to explain its case to the court.

Ryan had no comment on behalf of the Belle Creek Town Board.

A call for comment was not returned by AWA Goodhue representatives.

SECOND STORY: SAME WIND DEVELOPER....

WIND FARM TENSIONS FLARE UP OVER EAGLE STUDY

By  JOSEPHINE MARCOTTY ,

Source: Star Tribune, www.startribune.com

December 16, 2011 

A large number of eagles are active around the footprint of a controversial wind farm under development in Goodhue County, according to a wildlife survey the developer conducted this fall under orders from state regulators.

But AWA Goodhue Wind said in filings with the state Public Utilities Commission (PUC) that the count has been inflated by project opponents who are purposely attracting birds by dumping animal carcasses on the site as part of an eagle-baiting campaign.

The charges have not been verified by state investigators. But true or not, they represent yet another escalation in a fight between the developer and local residents that has split the community and which is occurring at other sites around the country as the wind industry evolves.

The 50-turbine wind farm, approved this year by the PUC, will be located on 12,000 acres that are home to both bald and golden eagles, as well as other protected birds and bats.

Officials from Goodhue Wind, who did not return phone calls Friday, have made changes in the project’s design in response to concerns from state and federal wildlife officials. But there is a growing realization nationally that the clean energy from wind is having an impact on wildlife.

The Goodhue County Board and other local governments and some residents have fought the project for more than two years over concerns about setbacks, noise and movement from the massive blades. The fight over birds and bats emerged when residents began documenting eagle nests in the spring and dozens of migrating eagles that hung around the area this fall. Both bald and golden eagles are protected by federal law.

To date, there are only five known instances in North America of bald eagles killed by wind turbines, said Rich Davis, a biologist with the U.S. Fish and Wildlife Service who has been monitoring the project for two years. But the Goodhue project is the first to be constructed in an area widely used by both bald and golden eagles for nesting and migrating, he said.

“I’m confident that there are birds using the area whether there is baiting or not,” he said. “I would definitely say that there is risk at that site.”

Davis said he’s just as concerned with the number of bats that the survey turned up, including rare northern long-eared bats and little brown bats. The project, in short, is likely to be a large experiment in whether, and how, both species can accommodate turbines, he said.

Such concerns prompted the PUC to order Goodhue Wind to conduct a wildlife survey and develop a protection plan, which was filed on Thursday. The company has been working with both state and federal wildlife officials.

The document says collisions with eagles will be rare, but projections are uncertain because the surveys “have been seriously compromised by an active baiting program being conducted by project opponents.”

Two golden eagles, which are on the federal endangered species list, were spotted near the site of a future turbine, the report said. One was soaring, and the other was attracted to “an active baiting location.”

Opponents deny baiting

Opponents of the project said there is no baiting going on, and that the company is making the allegations to obscure the true number of eagles in the area.

“They think we are purposely taking dead animals and throwing them in our fields to feed the eagles,” said Ann Buck, who owns a nearby dairy farm.

Buck said an investigator from the State Board of Animal Health came by to check on a complaint from Goodhue Wind about a dead calf in her pasture. It had been stillborn by one of her cows, she said. If there are animal carcasses that have been dumped, she said, they are likely put out as coyote bait, not eagle bait.

That might be true, said Carl Denkinger, an agricultural consultant with the Board of Animal Health. He said he has received six complaints from the wind company about animal carcasses, but only two seemed suspicious. Piglet carcasses were dumped out in the field, he said.

“This was done for a purpose,” he said. “What that purpose is I’m not prepared to say.”