Clean Air Act Settlement with Wisconsin Utilities Includes Funding for Renewables

An exciting new settlement in Wisconsin leads the way for millions in funding for clean energy. The EPA’s press release is below. Also check out Tom Content’s blog post summarizing the settlement. Detailed information can be found here.

Clean Air Act Settlement with Wisconsin Utilities to Reduce Emissions by More Than 50,000 Tons Annually 

WASHINGTON – The U.S. Environmental Protection Agency (EPA), the Department of Justice, and the United States Attorney’s Office for the Western District of Wisconsin announced a Clean Air Act (CAA) settlement with Wisconsin Power and Light Company (WPL) that will significantly reduce air pollution from three coal-fired power plants located near Portage, Sheboygan, and Cassville, Wis. 

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Small projects have wind in their sails

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

Companies working toward energy independence

The stalled state of wind farm development in Wisconsin has led to little development activity for large wind farms.

But on a much smaller scale, wind projects are moving ahead as companies fulfill commitments to environmental and energy independence.

In western Wisconsin, Organic Valley Cooperative and Gundersen Lutheran Health System have broken ground on a two-turbine wind project that will generate enough power to offset the energy use for Organic Valley’s corporate headquarters and distribution center, as well as meet 5% of Gundersen Lutheran’s energy needs.

In southeastern Wisconsin, S.C. Johnson & Son has proposed building two or three turbines that would generate 1.5 megawatts of power each. If the plans proceed on schedule, the turbines would be erected next year.

The co-op and health care system project, Cashton Greens, calls for roads and foundations for the $9.9 million project to be completed this fall, with the turbines scheduled for installation in spring 2012, said Cecil Wright, Organic Valley’s director of sustainability.

When completed, the turbines will generate about 12 million kilowatt-hours a year.

It’s a boost to a brand that has the word “organic” in its name, but this is about more than conveying a green image, Wright said.

“One of the main reasons we did is that it’ll help manage and fix our costs,” Wright said. “We’re not just doing it because it’s a nice thing to do. The higher the price of electricity goes up, the better we’ll do at paying off our project quicker, and that’ll be a profit center for us,” he said.

“In addition to providing renewable energy to Cashton and Organic Valley, the wind turbines will serve as a ‘living lab’ for research and education for students at Western Technical College,” Wright said.

Windmills and more
At S.C. Johnson, the wind proposal is the latest in a string of distributed generation and renewable energy initiatives for the company, which uses landfill methane gas to generate energy for the factory. The Waxdale factory will be able to produce 100% of its electricity on-site, with 60% of it from renewable sources, said Christopher Beard, S.C. Johnson spokesman.

The reasons for the projects are many – everything from a desire for energy security to a goal to reduce greenhouse gas emissions linked to energy use and a platform to showcase their brands as environmentally friendly.

“Both of those projects show that customers are demanding and making clean energy happen,” said Lee Cullen, a Madison energy lawyer who has been working with clients in the wind-energy sector. “There’s a groundswell of renewable energy production that’s happening because people understand its importance.”

Beard said the S.C. Johnson wind project “helps us address the fact that consumers are asking for products that are green and products that have been produced in a sustainable way. Manufacturing our products using on-site sustainable energy helps meet that consumer demand,” Beard said.

Projects to erect wind turbines and solar panels needs to be complemented with efforts to slash energy waste from a company’s buildings and production processes, said Tom Eggert, who runs the Wisconsin Sustainable Business Council.

Small projects have wind in their sails

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

Companies working toward energy independence

The stalled state of wind farm development in Wisconsin has led to little development activity for large wind farms.

But on a much smaller scale, wind projects are moving ahead as companies fulfill commitments to environmental and energy independence.

In western Wisconsin, Organic Valley Cooperative and Gundersen Lutheran Health System have broken ground on a two-turbine wind project that will generate enough power to offset the energy use for Organic Valley’s corporate headquarters and distribution center, as well as meet 5% of Gundersen Lutheran’s energy needs.

In southeastern Wisconsin, S.C. Johnson & Son has proposed building two or three turbines that would generate 1.5 megawatts of power each. If the plans proceed on schedule, the turbines would be erected next year.

The co-op and health care system project, Cashton Greens, calls for roads and foundations for the $9.9 million project to be completed this fall, with the turbines scheduled for installation in spring 2012, said Cecil Wright, Organic Valley’s director of sustainability.

When completed, the turbines will generate about 12 million kilowatt-hours a year.

It’s a boost to a brand that has the word “organic” in its name, but this is about more than conveying a green image, Wright said.

“One of the main reasons we did is that it’ll help manage and fix our costs,” Wright said. “We’re not just doing it because it’s a nice thing to do. The higher the price of electricity goes up, the better we’ll do at paying off our project quicker, and that’ll be a profit center for us,” he said.

“In addition to providing renewable energy to Cashton and Organic Valley, the wind turbines will serve as a ‘living lab’ for research and education for students at Western Technical College,” Wright said.

Windmills and more
At S.C. Johnson, the wind proposal is the latest in a string of distributed generation and renewable energy initiatives for the company, which uses landfill methane gas to generate energy for the factory. The Waxdale factory will be able to produce 100% of its electricity on-site, with 60% of it from renewable sources, said Christopher Beard, S.C. Johnson spokesman.

The reasons for the projects are many – everything from a desire for energy security to a goal to reduce greenhouse gas emissions linked to energy use and a platform to showcase their brands as environmentally friendly.

“Both of those projects show that customers are demanding and making clean energy happen,” said Lee Cullen, a Madison energy lawyer who has been working with clients in the wind-energy sector. “There’s a groundswell of renewable energy production that’s happening because people understand its importance.”

Beard said the S.C. Johnson wind project “helps us address the fact that consumers are asking for products that are green and products that have been produced in a sustainable way. Manufacturing our products using on-site sustainable energy helps meet that consumer demand,” Beard said.

Projects to erect wind turbines and solar panels needs to be complemented with efforts to slash energy waste from a company’s buildings and production processes, said Tom Eggert, who runs the Wisconsin Sustainable Business Council.

WP&L and WPS warn of higher rates because of pollution rules

From an article by Tom Content published in the Milwaukee Journal Sentinel on August 19:

Two state utilities said this week new federal pollution rules will lead to higher electricity costs come January.

Wisconsin Public Service Corp. of Green Bay said its residential customers can expect an increase of more than $4 a month next year, including about $2 linked to the new rules designed to limit air pollution from coal-fired power plants.

The utility said it would see higher costs of about $32.6 million in 2012 from the Cross-State Air Pollution Rule that was finalized recently by the U.S. Environmental Protection Agency. That will result in rates going up by 6.8% instead of 3.4%, the utility said.

The U.S. Environmental Protection Agency last month finalized stronger regulations for Wisconsin and 26 other states aimed at curbing air pollution from long-distance sources.

Environmental groups praised the new rule because it would reduce acid rain and air pollution as well as help curb health effects from dirty air linked to coal plants. The EPA projected the rule will save up to 34,000 lives a year and prevent more than 400,000 asthma attacks as well as 19,000 admissions to hospitals. . .

The new rule has been in development for several years but the first phase of compliance hits utilities in 2012. WPS said it won’t have time to install pollution controls by next year at its plants, but will be able to comply by purchasing credits from other utilities that have cut emissions.

The utility also said it plans to operate its coal plants less next year than it otherwise would have, and will buy more power from the Midwest wholesale power market as a result, a move that it said is also a factor in higher costs for customers. . . .

On Thursday [August 18], Wisconsin Power & Light Co. [Alliant] of Madison said it would face an additional $9 million in costs linked to the air pollution rule. With the change, the utility is now seeking an increase in 2012 of $20 million, or 2%, utility finance manager Martin Seitz said in a filing with state regulators.

Todd Stuart, executive director of the Wisconsin Industrial Energy Group, criticized the increases, and he noted that large energy users like paper mills will see higher than average increases, compared with homeowners and small businesses. Paper mills served by WPS could see a 9% hike, he said. . . .

“Industry always cries wolf whenever EPA tries to reduce air pollution,” said Katie Nekola, lawyer with the conservation group Clean Wisconsin. “The fact is, the new rule will affect old, inefficient, unnecessary coal plants that should have been shut down long ago. The continued operation of those old units is costing ratepayers money, but you don’t hear industry complaining about that.”

WP&L and WPS warn of higher rates because of pollution rules

From an article by Tom Content published in the Milwaukee Journal Sentinel on August 19:

Two state utilities said this week new federal pollution rules will lead to higher electricity costs come January.

Wisconsin Public Service Corp. of Green Bay said its residential customers can expect an increase of more than $4 a month next year, including about $2 linked to the new rules designed to limit air pollution from coal-fired power plants.

The utility said it would see higher costs of about $32.6 million in 2012 from the Cross-State Air Pollution Rule that was finalized recently by the U.S. Environmental Protection Agency. That will result in rates going up by 6.8% instead of 3.4%, the utility said.

The U.S. Environmental Protection Agency last month finalized stronger regulations for Wisconsin and 26 other states aimed at curbing air pollution from long-distance sources.

Environmental groups praised the new rule because it would reduce acid rain and air pollution as well as help curb health effects from dirty air linked to coal plants. The EPA projected the rule will save up to 34,000 lives a year and prevent more than 400,000 asthma attacks as well as 19,000 admissions to hospitals. . .

The new rule has been in development for several years but the first phase of compliance hits utilities in 2012. WPS said it won’t have time to install pollution controls by next year at its plants, but will be able to comply by purchasing credits from other utilities that have cut emissions.

The utility also said it plans to operate its coal plants less next year than it otherwise would have, and will buy more power from the Midwest wholesale power market as a result, a move that it said is also a factor in higher costs for customers. . . .

On Thursday [August 18], Wisconsin Power & Light Co. [Alliant] of Madison said it would face an additional $9 million in costs linked to the air pollution rule. With the change, the utility is now seeking an increase in 2012 of $20 million, or 2%, utility finance manager Martin Seitz said in a filing with state regulators.

Todd Stuart, executive director of the Wisconsin Industrial Energy Group, criticized the increases, and he noted that large energy users like paper mills will see higher than average increases, compared with homeowners and small businesses. Paper mills served by WPS could see a 9% hike, he said. . . .

“Industry always cries wolf whenever EPA tries to reduce air pollution,” said Katie Nekola, lawyer with the conservation group Clean Wisconsin. “The fact is, the new rule will affect old, inefficient, unnecessary coal plants that should have been shut down long ago. The continued operation of those old units is costing ratepayers money, but you don’t hear industry complaining about that.”