Officials with Iowa’s Office of Energy Independence credited “Iowa’s spirited and proactive response to energy efficiency” for the unexpected interest.

Read more in the Des Moines Register

South Dakota is the fifth windiest state in the nation, but neighboring states with fewer wind resources are installing more wind power and capturing more of the wind industry’s jobs and income.  One key difference is that states such as Iowa have enacted policies that encourage wind power development.

ELPC Policy Advocate Matt McLarty said the economic benefits of wind energy in South Dakota would be much greater than the savings from the proposed measures.  “They’re talking about a budget savings of $3 million for the state when there’s the potential for billions in wind investments,” McLarty said. “These three bills will do long-term damage to South Dakota and its wind investments.”

read more in the Argus Leader

“South Dakota should put more wind power into the sails of the state’s economy and job creation. South Dakota has the nation’s fourth-best wind power potential but only the 20th highest amount of wind power operating – 313 megawatts. By contrast, Iowa ranks 10th in wind power potential, but is second-highest in operating wind power capacity – 3,670 megawatts.

“That tenfold difference in wind power development amounts to about $7 billion of economic investment, thousands of jobs, and cleaner air. What accounts for this huge difference? Smart public policies and prioritization by leading public officials…Iowa Gov. Culver has written to his state’s congressional delegation urging their support, and Sens. Harkin and Grassley are indicating they’re on board. Here, however, Gov. Rounds and Sen. Thune have not yet expressed strong support for this key federal renewable energy legislation. It’s time to step up – for the good of South Dakota’s economy and job creation, as well as for everyone’s better health and the environment.”

Read the full op-ed here.

Wind power also brought 38 new manufacturing facilities online in the U.S. in 2009. Wind power presents an important opportunity for the manufacturing industry in the Midwest. ELPC has created documents outlining specific opportunities the wind industry supply chain presents to the Midwest and more specifically, to the Dakotas, Illinois, Iowa, Minnesota and Ohio.

ELPC’s Community Wind Financing Handbook is an important resource for communities and individuals interested in creating profit from clean, renewable wind energy.  This up-to-date guide reflects new financing opportunities available from federal energy and economic stimulus legislation, the new Farm Bill, and state incentives.

Promoting Policies to Encourage Wind Power Development

As many states are already learning, wind energy development presents a tremendous opportunity for economic growth. Environmental Law and Policy Center Senior Attorney John Moore says that’s especially true for the Midwest. According to Moore, several government policies have helped spur the development of wind power in rural America.   Listen to the interview here.

A window of opportunity is opening for solar power in the Midwest. The Environmental Law & Policy Center is working to ensure that we seize this opportunity to promote solar power development that creates new jobs, spurs economic growth and helps to solve our global warming pollution problems.

Wind Power

Wind Power is the fastest growing energy resource in the world.

During 2009, the United States added 9,900 megawatts of wind power capacity, this 39% increase accelerates that trend of rapid growth in recent years. A significant portion of the new wind power came online in the Great Plains states of North Dakota, South Dakota, Illinois, Iowa and Kansas.

Wind power also brought 38 new manufacturing facilities online in the U.S. in 2009. Wind power presents an important opportunity for the manufacturing industry in the Midwest. ELPC has created documents outlining specific opportunities the wind industry supply chain presents to the Midwest and more specifically, to the Dakotas, Illinois, Iowa, Minnesota and Ohio.

ELPC’s Community Wind Financing Handbook is an important resource for communities and individuals interested in creating profit from clean, renewable wind energy.  This up-to-date guide reflects new financing opportunities available from federal energy and economic stimulus legislation, the new Farm Bill, and state incentives.

Clean Renewable Energy Bonds

The Energy Policy Act of 2005 (P.L. 109-58) created Clean Renewable Energy Bonds (CREBs) as a new financing tool for electric cooperatives, public power systems and units of state and local government to build renewable electricity projects. CREBs are special-purpose tax credit bonds which provide the equivalent of an interest-free loan. Bondholders receive a tax credit on their federal income taxes instead of an interest payment from the bond issuer. This is a valuable incentive for entities that are otherwise ineligible for the federal Production Tax Credit (PTC) which is available only to for-profit entities.

Resources and Information

Consult the following documents to learn more about the CREBs program and application procedures.

IRS Guidelines on the CREB Program (issued 3/6/06)

Guide to CREBs written by the law firm of Hunton & Williams [pdf file]

Guide to CREBs written by National Rural Electric Cooperative Association [pdf file]

IRS Disclosure Report on 2007 CREB awardees [pdf file]

Internal Revenue Service Bulletin – March 2006

Interconnection Standards

ELPC is working on many fronts to increase the use of less-polluting, energy efficient, and renewable electricity generation. One goal is to reduce reliance on old, dirty, centralized power plants and advance “distributed generation” – literally shifting some generation of electricity to wind turbines, photovoltaic panels, combined heat & power (CHP) systems, and other clean and efficient resources that are distributed across the electric grid and are often sited at a customer’s home or small business.

In order to accomplish this structural shift, state policies must be reformed. Statewide interconnection standards make it easier to connect solar panels, wind turbines and other clean energy systems to the electric grid. These standards streamline the interconnection process by including uniform engineering requirements, reasonable fees and timelines, standard application forms and legal agreements, and “expedited review” for small projects.

Net Metering

Net metering is a special metering and billing agreement between utilities and their customers which allows customers to sell excess electricity back to the grid and gives customers a financial incentive to invest in renewable sources of energy. When a net metering customer’s renewable generator is producing more power than the customer needs, the electric meter runs backward, generating credits. At the end of the billing period, the customer is only charged for the “net” power that they consume.

Model Net Metering and Interconnection Standards

ELPC’s “Model Net Metering and Interconnection Standards for Renewable Energy Systems” were developed with the input of industry experts and reflect recent best practices at the state level. Although the model contains both net metering and interconnection standards, these two parts can be used separately. To make it easier, the Net Metering Standards[pdf file] and Interconnection Standards[pdf file] are also available as two separate documents.

Promoting State Policy Changes

ELPC leads broad coalitions of clean energy advocates and entrepreneurs to promote distributed generation and the necessary state policy changes across the Midwest and Great Plains. ELPC’s advocacy and technical expertise has helped Illinois, Michigan and South Dakota finalize their interconnection standards, and has moved Iowa’s rules toward completion.

In addition to our leadership in Iowa, Illinois, Michigan and South Dakota, ELPC is providing key regional perspective and expertise to support similar projects across the region. We expect our current and future work to significantly reduce existing barriers to distributed generation, which will help diversify electricity generation, provide economic benefits, and encourage the development of efficient and clean sources of power in the Midwest and Great Plains.

Repowering the Midwest

The boom in clean energy development, especially wind power, presents a tremendous opportunity for economic growth in the Midwest, and some of the best long-term opportunities will come directly from the manufacturing of wind turbine components. Visit RepoweringtheMidwest.org, ELPC’s website devoted to news, research reports and other resources aimed at advancing the region’s clean energy revolution.

What ELPC is doing:

The right policies can extend this window of opportunity into the future. The Environmental Law & Policy Center and our colleagues are advocating for an earlier ramp up of solar power in Illinois’ renewable energy standard.  We are working on feed-in tariff models in Michigan and with colleagues in Iowa to improve the state’s net metering policies.  As Wisconsin considers boosting its Renewable Energy standard in 2010, there may also be opportunities to include solar provisions.  We have an opportunity to gain solar policy improvements as the unusually low prices and federal economic stimulus incentives drive significant solar development.

Watch ELPC’s Webinar on Solar Power in the Midwest

Why the time is right to ramp up solar power in the Midwest:

• The economic outlook for solar power is the best it’s been in many years. Solar photovoltaic (PV) module prices have come down to historic lows and recent federal energy legislation and the economic stimulus package are making solar projects more affordable.

• Solar power can bring good returns on investment by meeting our needs during times of peak electrical demand. When we use higher than average amounts of energy, utilities need to buy power on the open market at very expensive rates. Peak demand happens during daylight hours and especially in the summer. Solar power matches up well with pricey peak demand times.

• Former industrial sites in the Midwest can be revitalized as solar power plants. These sites can house 10 – 20 MW projects, large enough to make economic sense and small enough to fit onto the grid. Locating solar plants on older industrial sites gives them unobstructed sunlight and low-cost access to the electrical grid.  The new 10 MW solar plant South Side of Chicago is a perfect example.

• In the current economic downturn, there are plenty of skilled workers looking for good jobs like installing solar systems.  Federal and state job creation grants, subsidies, credits and training programs for green jobs are all making it easier to hire workers. The International Brotherhood of Electrical Workers is (re-) training new skilled solar installers at facilities in Illinois, Indiana and other states.

• State and federal policies are working to support solar power. For example, Illinois added a provision to the state’s renewable energy standard that will drive a market for 700-750 megawatts of solar power in the state by 2015.  Midwestern states are streamlining rules for connecting solar to the grid and creating net metering standards that will help solar generators get a good price for the power they generate. Expanding net metering policies to cover larger projects will boost solar even more.

People might think solar power only makes sense in places like Arizona and Nevada. But there are some good solar sites here in the Midwest. We’ve got better solar intensity here than both Germany and Japan, the world’s largest solar markets.

The letter also points out that:

• Our nation is spending $1 billion a day on energy from foreign countries, threatening our national security and our economy.
• Other nation’s are moving faster than the U.S. to profit from the clean energy economy.
• The clean energy and climate challenge is America’s new space race –and meeting that challenge can place our country at the forefront of innovation and prosperity.

Read the letter here

By creating a guaranteed market for renewable energy, RPS legislation has attracted large amounts of private investment in these states and created manufacturing, installation and maintenance jobs to supply the renewable energy industry.

ELPC Executive Director Howard Learner said that Indiana needs a renewable portfolio standard to take advantage of its wind power potential. As Learner said, “There is widespread agreement that if we want to have extensive wind power development across the Midwest, in order to seize job creation, economic development and environmental value, we need to have a smart shift in policy to help grow the green economy.”

Read coverage in the Muncie Star Press

“We now call for the EPA to implement strong and fair standards that will reduce global warming pollution if Congress does not step up with legislation.  Implementing effective global warming solutions, such as energy efficiency and renewable energy development and high-speed rail development can create job growth, spur economic development, and help to solve our global warming problems.”

- Statement from Howard Learner, Executive Director, Environmental Law & Policy Center

As with any young industry, supportive policies are critical to building up America’s clean energy capacity. In the op-ed, Mindi highlight some of the companies that are creating jobs and income from clean energy in the Midwest and outlines how smart policies can help move renewable energy development forward.

Read the full piece here.