Ballot Initiative on Alternative Energy Planned

by Bruce Goodman, Energy Lawyer

A coalition of groups and companies is seeking to place a constitutional amendment before voters on November 3, 2012 to set Michigan’s energy policy. The proposed ballot language would require that by 2025 at least 25 percent of each electricity provider’s annual retail electricity sales be derived from clean renewable electric energy sources. The requirement would cover investor-owned, municipal-owned, and cooperative-owned electric utilities in the state. Petitions requesting that the initiative be placed on the November ballot must be filed by July 9, 2012, and must contain at least 322,609 valid signatures. Although the period during which signatures may be sought is 180 days, the petition must be filed at least 120 days before the election. The initiative requires a majority of the votes cast to go into effect.

Good Things Come to Those Who Wait?

by Bruce Goodman, Energy Lawyer

In May 2011, in front of 40 of Michigan’s top leaders in clean energy manufacturing, Governor Snyder presented the first Reinventing Michigan Award to Energetx Composites. Having waited impatiently for four months, this group of entrepreneurs (ready to unleash their economic gardening skills, resources, and innovation) asked the Governor for his energy policy. Answer: his energy policy would be forthcoming “in the fall”. In August, when Valerie Brader was named the state’s energy policy officer, Mike Finney stated “Energy concerns are at the center of our economic future, whether we are talking about its cost and availability or job creation and new business potential in green energy manufacturing.”  Then word went out that the Governor’s energy policy statement would be pushed to the first quarter of 2012. More waiting for those concerned about: RPS, standby rates, distributed energy, bioenergy, offshore wind, deregulation, customer choice, coal-fired generation, solar manufacturing, and advanced energy storage. The State of the State message last week yielded another setback: energy policy is being pushed off until “this fall”. Michigan has been treading water on energy policy for over a year. We are in a policy twilight zone. Elected officials need to hear from the clean energy manufacturing community now. Policy delayed is policy denied.

Energy Center Planned for Site TBD on Muskegon Lake

by Bruce Goodman, Energy Lawyer

Two West Michigan companies, L3 Combat Propulsion Systems of Muskegon and Rockford Bergé of Grand Rapids, have organized the Michigan Wind Energy Consortium. With the support of other local companies, they intend to take advantage of Muskegon’s deep-water port capacity and the area’s manufacturing capabilities to build parts for wind turbines and ship them around the world. The industrial center may begin as a wind turbine hub, but could support other advanced manufacturing, shipping, research and development, testing and education activities as it develops. The economic development effort will bring together private companies, local government, economic development agencies, and colleges. The proposed West Michigan Economic Partnership between Kent and Muskegon counties is also key to the project.

Coal Plant(s) Off the Table

by Bruce Goodman, Energy Lawyer

Consumers Energy has canceled the $2.3 billion 830 MW supercritical coal-fired power plant for which it had successfully obtained an air permit in late 2009. The recession and slow economic recovery which have reduced customer demand, a surplus in Midwest generating capacity, and low natural gas prices, were all given as reasons for the decision. The company will also suspend operations of seven smaller coal-fired units on January 1, 2015; two at Karn Weadock, three at J.R. Whiting, and two at B.C. Cobb generating plants. Environmental upgrades at its five remaining coal-fired units are estimated to cost $1.6 billion. The shutdowns and upgrades together will reduce the company’s overall air emissions by 90 percent. Meanwhile, Consumers Energy’s 100 MW wind farm is now under construction in Mason County and will be ready in late 2012, and its 150 MW wind farm in Tuscola County will commence operations in late 2015.

If I Ruled the World (or maybe just the State)

by Bruce Goodman, Energy Lawyer

Five elements to include in an energy policy for Michigan:

BIOMASS ENERGY: Make use of the energy in biomass that is going to waste in this state. The BTU content of the “unused biomass” in the state of Michigan is enormous. 

ENERGY EFFICIENCY/CONSERVATION: Make better use of our existing energy resources. Because our energy costs are so low, citizens and industry are not very aggressive in avoiding the “waste” of electricity and fuels. Increasing the price of energy (a carbon tax would be a start with a redistribution of the revenues to accomplish energy efficiency) is an option that deserves serious consideration.

DEREGULATION/CUSTOMER CHOICE ON ELECTRICITY: Reintroduce competition into the purchase and production of electricity. The deregulation of Michigan’s electric industry which was begun in 2000 was reversed in 2008. Just as competition in the telephone industry drove down prices and fostered innovation, the same competitive effect could drive Michigan’s electric industry.

ENCOURAGE ELECTRIC VEHICLES: Make electric cars work in Michigan. The state has placed a huge bet on the success of the electric vehicle industry; it is time to lead the nation in electric vehicle ownership. State government should fill its fleets with electric vehicles and the infrastructure for electric vehicles needs to be built out. Consider tax incentives for vehicle purchases.

BE A MODEL FOR RENEWABLE ENERGY: Made-in-Michigan renewable products and technology could lead the world. Michigan already is a leader in the solar energy field with Hemlock Semiconductor and  United Solar Ovonics; we need to demonstrate how this technology can be adapted for integration into buildings, the electric grid, and society. Similarly, Michigan has fledgling biofuels, biomass, wind, and geothermal industries and technologies that need to be strongly encouraged, whether with grants, tax incentives, or other assistance. To make Michigan a showcase for the implementation of these technologies, we need a larger renewable portfolio standard (from 10 percent to 25 percent) and the removal of barriers to self generation (i.e.  unreasonably high standby rates and unreasonably expensive interconnection charges).

These may not be the top five, but they deserve to be near the
top of the list.

Update on Wind Farms in Michigan

by Bruce Goodman, Energy Lawyer

Wind farm projects and plans are cropping up all around Michigan. The Gratiot County wind project commenced construction in September and is starting to give tours. The Muskegon County Board has just approved a proposed lease agreement that gives Muskegon Wind LLC, a partnership between Gamesa Energy USA and Scandia Wind Offshore, exclusive rights to research and investigate the suitability of constructing a wind farm on the County’s wastewater treatment site. Duke Energy has narrowed the potential location for its Gail Windpower project to Pleasanton and Joyfield Townships in Benzie and Manistee Counties. Construction commenced on November 7 at the Lake Winds Energy Park being developed by Consumers Energy in Mason County, with the delivery of 56 Vestas V100-1.8 MW turbines scheduled for the first half of 2012. The Huron County Board of Commissioners has approved the creation of the Deerfield Energy Overlay District in the northeast portion of that county. Meanwhile, 63 proposed wind turbine sites in southeast Lenawee County have been ruled a presumed hazard by the FAA due to their proximity to the Toledo Express Airport. For more on proposed projects, see MPSC wind farm summary at www.tiny.cc/miwind.

Lake Michigan Winds Being Measured

by Bruce Goodman, Energy Lawyer

The Grand Valley State University Wind Sentinel wind data buoy was deployed to Lake Michigan from its initial Muskegon Lake location on November 4, and is now located four miles southwest of the Muskegon pierhead. With on-board power supplied by solar panels, a wind turbine, battery bank storage and a diesel generator (if needed), real time data is transmitted in ten-minute intervals to a dedicated computer server at the GVSU Padnos College of Engineering. Wind velocities are being measured at 55, 60, 90,110 and 120 meters at one second intervals. A sample reading indicates that at noon on November 17, wind velocities were respectively 9.8, 9.8, 10.6, 11.1, 10.6, and 10.5 meters per second. Data on thermo-fluid characteristics, wave and atmospheric conditions, as well as the presence of bird/bat activity are also being collected. The buoy will remain “on station” until mid-December when it will be brought to shore for winter storage. The Lake Michigan Offshore Wind Assessment Project continues to struggle with a funding shortfall caused by a court decision on MPSC grants, and future deployment remains uncertain.

Community Energy Plan for Holland

by Bruce Goodman, Energy Lawyer

Garforth International and a team of city employees recently presented a Community Energy Plan to a town hall meeting in Holland. The plan provided national and world-wide background information on energy issues, and suggested a course of action for the City of Holland leading up to its bicentennial in 2047. Five scenarios for managing and meeting future electric demands were offered, with various combinations of: wind energy, natural gas generation, district heating infrastructure, solar energy, biofuels, wood chips, coal, and wastewater treatment plant sludge incineration. Scenario B was recommended, which proposes continuing the city’s current course of action, aggressively pursuing energy efficiency projects, and making investments in wind, solar, and other renewable resources. The next step is to have the Community Sustainability Committee make recommendations to the City Council.

Offshore Wind Advocates Step It Up

 by Bruce Goodman, Energy Lawyer

A month-long petition drive has commenced to ask Governor Snyder to actively support taking whatever steps are needed to encourage offshore wind in Michigan waters of the Great Lakes. The groups behind this effort include the Sierra Club, Michigan League of Conservation Voters, the West Michigan Jobs Group, Clean Water Action, the Ecology Center and the West Michigan Environmental Action Council. The goals include having the state define the respective roles of state and local government, raising revenue, allowing public participation in the permitting process, protecting the Great Lakes from adverse impacts, and creating a clear process for leasing Great Lakes bottomlands.

Should the Governor Go Beyond Fuel Taxes to an Overall Carbon Tax?

 by Bruce Goodman, Energy Lawyer

It is being reported that Governor Snyder intends on seeking a change in the transportation fuels taxing structure, shifting the application of the tax from the retail to the wholesale level. If true, is it time to consider a more general fossil fuel carbon tax? It has long been recognized that transportation fuels lead to “externalities” for which a tax is appropriate. These include the need to build and repair roads, bridges and other infrastructure. Gasoline and diesel tax revenues are intended to cover these costs. Similarly, fossil fuels used for electric generation also have externalities. For example, coal-fired generation has long-term health and environmental impacts (and the need for regulatory oversight) which ultimately costs the state and its citizens money. Without putting the Michigan economy at risk, the Governor could seek a modest carbon tax on coal and natural gas used to produce electricity that would reward the move toward 10 percent renewable, made-in-Michigan, energy. It would create a new economic rationale for increasing our dependence on locally-produced electrons and pursuing the cheapest form of energy—conservation. Let’s start the conversation.