Audio and text versions of the Webinar are available on this important, yet often misrepresented and misunderstood, issue of social acceptance of wind energy (WMV 15.3 MB) Download Windows Media Player. Time: 01:21:22. Text Version (PDF 178 KB), Dr. McCunney's presentation (PDF 232 KB), Lawrence Mott's presentation (PDF 283 KB) Download Adobe Reader.

Early last decade, the Environmental Law and Policy Center recognized wind power and other renewable energies as great solutions for diversifying income, improving environmental quality, and rural economic development. That's when ELPC Senior Attorney John Moore says they created a report on "Repowering the Midwest," which focused on the different types of government policies that could move renewable technologies — like wind power — forward.

"The Repowering Midwest report was really a major spark for Senator Harkin from Iowa and Senator Lugar from Indiana to think more about what the Farm Bill could do for clean energy development, and develop the Energy Title in the Farm Bill."

Among the programs included in the Energy Title of the Farm Bill was the Rural Energy for America Program, or REAP. Moore says it's one of the few federal programs that helps farmers and small businesses with grants and loan guarantees for the complete range of renewable energy and energy efficiency technologies. It provides as much as 25-percent of a project's cost — up to $500,000 per project — and loan guarantees for project development. Wind power, according to Moore, has been a major part of REAP projects since 2003.

"REAP has funded more than $53,000,000 in wind projects, or about 350 projects both large and small. The REAP program is very popular now, with project rewards in virtually every state in the country. And the Administration supported more funding, so for 2010, REAP funding is going to be up another 40% or so, close to $100,000,000 dollars."

Moore says the 2009 Recovery Act also included important financial incentives for wind development. From a farmer's perspective, he says the most important program is the Treasury Grant Program, which provides up front cash grants for 30-percent of a project's total capital costs.

"That's new and it's important because it doesn't require owners of these projects to have the really substantial tax appetite and expenses that are necessary to take advantage of another important program called the Production Tax Credit, which the Recovery Act extended through 2012. It also expanded something called the Investment Tax Credit, also through 2012. And it also made it easier for rural electric cooperatives and public power companies and towns and cities and states to also borrow money and build clean energy projects."

Moore calls the Treasury Grant Program a game-changer but says it's only effective for a couple more years for most wind power projects. For smaller projects, however, he says the program is effective through 2016. This covers individual turbines of 100 kilowatts or less, which Moore says are nicely sized for many farm operations. He encourages producers to give that serious consideration.

More Information

• Rural Energy for America Program

  The 2008 Farm Bill, enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program (formerly Section 9006 of the 2002 Farm Bill) into the Rural Energy for America Program. The program allows farmers to apply for grants and loan agreements to help fund renewable energy projects and energy efficiency on the farm, including wind projects. The program also provides grants for energy audits and renewable energy development assistance.

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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.

ELPC has created a series of reports on the positive impact the wind supply chain will have on the Midwest economy including a 2001 report on "Repowering the Midwest." Moore says it's really a plan to seize the opportunities that come with clean energy development.

"Wind power and other renewable energy are great solutions for diversifying income, improving environmental quality and overall rural economic development. So we thought about the different kinds of policies that could help most spur these technologies forward, including wind power."

According to Moore, several government policies have already helped spur the development of wind power in rural America.

"I think the production tax credit early on was a significant catalyst for more wind power. The Rural Energy for America Program — REAP — has also helped, especially with community wind projects. And then the Treasury Grant Program, which was in the Recovery Act, also is important. The thing about wind power development is that the capital cost upfront is expensive, so just getting that initial capital cost accounted for and paid for is the hurdle that most people face. That's why these incentive programs are important, because over the long-run it's a very low cost, low fuel cost energy source and it doesn't have any carbon cost."

Moore adds financial incentives offered by individual states also help defray the initial costs of wind projects.

Some states also have renewable energy standards in place. That's one policy Moore says is still needed if rural America is to enjoy the full benefits and deployment of wind — a strong federal renewable energy standard. He notes Congress is currently working on that as part of the climate bill. But Moore believes other action is necessary.

"I think tax reform is also important. Less than a dozen large investment companies really have enough of a tax appetite to use the production tax credit and make it worthwhile. And so we have a situation where we've seen large investment companies like Goldman Sachs actually owning wind farms. While helping to move wind power forward in general, that kind of a policy makes it really hard for local owners, local developers and other investors to take advantage and invest in renewable energy projects."

Then there's the existing Treasury Grant Program mentioned earlier. Moore suggests that should be extended by at least a couple more years. He says it would help move wind projects forward.

As for those land owners and rural organizations that have an interest in taking part in the wind energy future, Moore offers some advice. For one, support the continuation of important policies like USDA's REAP — the Rural Energy for America program. But also seek out reputable business partners and experienced developers who know how to make wind projects happen. Moore also suggests connecting with those in other states; learn from their successes and mistakes.

Independence Wind is actively working on developing a commercial wind farm in Western Maine.

Q. As Maine's governor, what was your perspective on the role of wind power in Maine?

A. When I was governor, there was virtually no commercial-scale wind development in Maine, only residential-scale. As governor, I had an interest in Maine's energy situation, and our need for more energy options. My interest in wind as a serious energy resource started in the 1970s when I first read of it in the Whole Earth Catalog. On a professional level, though, my interest in wind began only last year.

As governor, I supported the development of natural gas pipelines through Maine, which provided an additional energy resource. I had come out of the alternative energy field, and I was concerned about the long-term cost of energy and long-term price stability and felt that increasing our supply options made a lot of sense. Historically, Maine got energy from hydro, nuclear, and some fossil fuel resources. The nuclear plant is now closed, which makes Maine unhealthily dependent on natural gas for about 60% of our electricity... we're vulnerable on supply and price. Aside from hydro, wind is the only renewable resource for which you can offer a fixed price.

Q. You have a background in both renewable energy and energy efficiency. As part of a broad energy policy, what do you see as the relative roles of these alternatives?

A. The older I get, the more I realize that there is no single solution — most problems need to be solved through a combination of solutions. Clearly, conservation and efficiency have important roles. In the early 1990s, I spent 5 years in the energy efficiency business and saw that there was still much we can do to use less energy. I also realized that there is a finite limit in terms of what is feasible, what makes sense. For example, once you retrofit lighting, you can't easily go back and do it over and again. So, while there is clearly a continuing role for energy efficiency, it is only part of the answer. And even with it, we will probably still see a growing demand. Therefore, we must talk about energy supply.

In terms of economics, energy security, and the environment, we need to talk about non-fossil-fuel-based supply: wind, hydro, or nuclear. At this point, there are no plans for new nuclear power plants in Maine, leaving wind and hydro on the table. Having been in the hydro business, I know that there is very limited untapped hydro potential in Maine. That leaves wind. Wind can never become 100% of our energy supply unless better energy storage technology is developed, but it can certainly be 10% to 20% of the mix if we have baseload plants to fill in the gaps. It is significant that the high wind periods in Maine are in the wintertime, coinciding with high demand for fossil fuels and electricity. Until a few years ago, Maine's utilities were winter-peaking, and even now, there is still heavy demand in the winter, so wind is a nice fit for Maine. I don't see wind energy as a panacea, but I do see it as a significant part of the solution with tremendous environmental benefits.

Q. Looking ahead 10 to 15 years, how much wind power do you expect to see in Maine?

A. Maine has a total average demand of about 2,200 megawatts (MW). For wind to contribute a 10% share in the near-term — at a 35% capacity factor, that's 300 to 600 MW of capacity — is not unreasonable. Another big issue is the technology of offshore wind. The geography of Maine's coast makes offshore wind a challenge, but if and when technology is developed for deeper-water offshore wind, there is huge potential. Offshore wind in Maine could generate thousands of megawatts.

Q. Do you see an opportunity for an increase in jobs in Maine connected with wind?

A. There are three levels of jobs connected to the wind industry. The number of construction jobs associated with wind development is not inconsiderable. Between riggers, bulldozer operators, etc., I have seen estimates of six jobs per tower. There will also be operations and maintenance jobs. These will be fewer, probably one job per 20 MW. Most important, increasing wind development could stabilize electricity rates, especially in an area where most of the power comes from fossil fuels. This would provide a long-term advantage for economic development and create sustained job growth.

In the beginning of the natural gas boom, I met with the New England Governors on the subject of electricity generation. I remember voicing concerns about going from no natural gas to being over-dependent. It's both a security and a price risk. I was recently in Singapore, which gets all of its drinking water from Malaysia via a pipeline. Some years ago, they recognized that this wasn't a good idea and invested in desalination and reverse-osmosis plants and now they're virtually water-independent. We need to do the same — and have alternative options to a costly and volatile fuel source.

Q. We've seen that any electricity generation project will have some undesirable impacts. How do you view wind power's impacts within a larger context?

A. The only real impact I have discerned is visual impact. When I visited the Mars Hill site, they experienced narrowly defined issues with noise. But you can avoid noise issues by siting a project a sufficient distance away from houses and the residents. At Mars Hill, for example, there are a few houses that are particularly close and downwind that appear to have sound issues, but in general, noise impacts from wind generation can be managed. There can be noise problems if you're too close, but they drop off rapidly as the distance increases; it's all about the setbacks. Studies regarding bird impacts conducted around the country show that wind power has a modest effect on birds and that their impact on birds is less serious than we initially thought. So a tolerance for changes in people's views is the primary issue with wind. I have met an amazing number of people who have traveled, seen lots of windmills, and think they are beautiful. It is clearly a subjective judgment.

If visual impacts are the worst thing we have to deal with in order to make a dent in climate change and fossil-fuel dependency, we need to realize that it could be a lot worse. I used to work on biomass development, but with biomass, you are still burning something. You need a tall smokestack. Your trucks transporting your fuel are emitting CO2. Wind has a very short list of negatives compared to other alternatives.

Q. What inspired you to go into wind development after leaving office?

A. My friend Rob Gardiner and I had been talking about going into wind development for more than a year. There are three main reasons. First of all, it is an interesting business opportunity that will hopefully be profitable. I enjoy business, and energy is a business that I know. Second, this endeavor has important long-term benefits for Maine in stabilizing electricity prices and decreasing the state's dependence on volatile fossil fuel supplies and prices. Last, I like the idea of trying to DO something about climate change. This is an opportunity to try to solve, rather than just talk about solving, problems. My feeling about Maine is that we have to take advantage of the assets that we have. There are a lot of things we don't have, but we do have wind, we have the Gulf of Maine, water supply, and forests. We need to play with the hand we were dealt, work with the assets that we have, and Maine has the most wind potential in New England.

Q. How has the transition from governor to wind developer gone so far? How does being ex-governor help or hinder your efforts?

A. I was already 4 years out of office before starting Independence Wind, and I never dreamed of having anything to do with wind during my time as governor. The precipitating factor was when I went to Sugarloaf in the summer of 2006 to testify in favor of the Redington/Black Nubble project. I went as a citizen and was frustrated. Here was an opportunity to do something about climate change, but the big picture wasn't getting across. After that, I spoke with Rob Gardiner and said, "Maybe there's something we can do." We started surveying sites and found a very good one. I tried to bear in mind the environmental objections at Redington and other sites and pre-selected sites that would hopefully minimize such problems.

We've tried to be sensitive and have met with selectmen, towns, and residents. I'm not sure if that will help or hinder the process, but my guess is that it's a curiosity to have the former governor talking about local issues. Hopefully some people in the town will think that I was a good governor and be supportive, but others might think the opposite.

Q. What do you hope to accomplish as a wind developer?

A. I would like to be associated with the development of substantial projects in Maine and make a dent in Maine's energy demand and climate impact. The bottom line is that we need to DO something about climate change instead of just talking about it. The things we need to do will require change, and change is always difficult. We need to get used to seeing windmills where we used to see ridgelines, we need to drive less and conserve more. We can't deal with a global issue by doing the same as we've always done.

Q. How did you choose the name Independence Wind? Do you see wind as a key to Maine's energy independence, or do you see Maine as a wind exporter?

A. The name was Rob's idea, and it has a nice connotation of independence from fossil fuels. It is possible that Maine could be a wind exporter. In the energy business, electrons will go where they will. We will see Maine exporting on windy days and importing on a hot summer day. If Maine develops offshore wind in a major way 15 years in the future, then it could be a major source for all of New England because of the enormous magnitude of potential.

Q. What do you see as your biggest risks and challenges to Independence Wind's success?

A. The two biggest risks are the current low natural gas prices and the permitting process. Gas prices, which determine marginal electricity prices in New England, are one-third of what they were just 16 months ago and make it very difficult for any capital-intensive source like wind or hydro to compete in the short-run. In the longer run, anything over five years, I'm still confident that wind can and will be an important part of the regional energy mix. The time will come, sooner rather than later in my view, when we'll be very happy that we have zero fuel cost sources available. On the permitting side, local opponents are getting more organized and aggressive and are driving up the cost and time involved in getting final permits. The problem, of course, is that the benefits of windpower are broadly distributed while the impacts are local. But the majority of the residents in the town which is hosting our first project have voted twice in our favor, so we've made some progress in demonstrating local as well as statewide benefits.

This presentation gives a broad yet comprehensive overview of wind energy in the United States. It uses maps and charts to quickly show the past and current status of wind energy development issues in the United States. Illustrations include:

• Rotor diameter and energy output increases as commercial wind technology evolves in the United States between 1980 and 2015.
• Increased turbine size, research and development advances, and manufacturing improvements increased the amount of energy wind turbines produce, thus contributing to decreased wind energy costs and making wind energy competitive in today's wholesale energy market.
• The United States has experienced 4 years of strong growth. In 2008, the United States led the world in wind capacity additions and in cumulative capacity.
• The United States lags behind other countries for wind as a percentage of electricity consumption. Wind represents just 1.9% of the United States' electricity supply, while that percentage is as high as 20% in Denmark, 12% in Spain, 11% in Portugal, 9% in Ireland, and 7% in Germany. The prospects for future growth are substantial.
• A map of the United States shows installed wind capacity today compared to 1999.
• Wind power drivers include declining wind costs, fuel price uncertainty, federal and state policies, economic development, environment, public support, green power, energy security, and carbon risk.
• Slides illustrate the generation cost of wind compared to other generation sources, natural gas and coal historic prices, wind cost drivers (steel prices, copper prices), and carbon dioxide prices significantly increasing the cost of coal.
• A map of the United States illustrates Renewable Portfolio Standards by state. Renewable Portfolio Standards (RPS) is the term for legislation mandating that power suppliers obtain a percentage of their power mix from renewable resources. The demand for renewable energy is greater than the amount that can be supplied at the current time.
• A map of the United States shows states with green power programs.
• A slide shows some wind energy investors; another slide illustrates that windy rural areas need economic development. Economic development impacts discussed are land lease payments, local property tax, and jobs.
• A map of the United States shows that soaring demand for wind energy spurs the expansion of U.S. wind turbine manufacturing.
• A slide lists environmental benefits: no sulfur oxides, nitrogen oxides, no particulates, no mercury, no carbon dioxide, no water.
• A slide highlights water issues.
• A slide highlights case studies and local ownership models.
• A slide lists key wind power issues.
• A slide discusses the 20 percent wind scenario, market challenges, job creation, water savings, carbon savings, and the resulting costs and benefits.
• The conclusion is that 20% wind energy penetration is possible; 20% penetration is not going to happen under business as usual scenario; policy choices will have a large impact on assessing the timing and rate of achieving a 20% goal; key issues are: market transformation, transmission, project diversity, technology development, policy, and public acceptance.

Audio and text versions of the Webinar are available (WMV 11.2 MB) Download Windows Media Player. Time: 01:03:28. Text Version (PDF 153 KB), Randy Udall's presentation (PDF 6.9 MB) Download Adobe Reader.

The conference is designed for

• Farmers, ranchers, and other rural land owners
• Food processors
• Agricultural organizations
• Public and private utilities
• Rural economic development leaders
• Local, state, federal, and tribal officials
• Clean energy firms, consultants, and supporters
• The next generation of rural workers and leaders

Presentations will focus on key findings and on new work that was performed since the last stakeholder meeting in the summer.

The meeting will be held at the Hotel Albuquerque, 800 Rio Grande Blvd, NW, Albuquerque, New Mexico. To make reservations, please call the hotel directly at 505-843-6300 or 1-800-237-2133 And ask for the "National Renewable Energy Laboratory" group rate of $137. This rate is available until January 18.

Please RSVP to Kelly Wang by Feb 3 if you will be attending this meeting.

Web Conferencing

Call 1-800-619-8495 and give the passcode: NREL

Using Internet Explorer or Safari, you can see the Web conference at: https://www.mymeetings.com/nc/join.php?i=PW1805100&p=NREL&t=c

If you do not have fast Internet access, you can download the presentations ahead of time.

More information about the Western Wind and Solar Integration Study.

This year's event will also feature the pre-Summit workshop, Structuring Your Wind Project Financing. This technical workshop is designed to provide you with the best and latest insights into wind power assets valuation, identifying potential hurdles to the deal, and structuring the deal and financing to complete the transaction.