4. REGIONS:

As Obama visits Wis., Republicans trim state's clean energy policies

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Correction appended.

After taking over their state's political apparatus last fall, Wisconsin Republicans are now planning dramatic shifts in the state's energy policy.

As President Obama prepares to tour an energy company in Wisconsin today, the newly empowered head of the state Assembly's Energy Committee told ClimateWire he sees changes to the state's renewable standard, a possible resolution against U.S. EPA greenhouse gas rules, and a repeal of a state law restricting nuclear power plants.

There also may be curtailments in an energy efficiency program paid for by utilities, because it is too expensive amid the state's deficit problems, said Republican Rep. Mark Honadel, the new chairman of the Assembly Committee on Energy and Utilities.

"I think what's been missing in the energy debate in the past is the economy," said Honadel about policies supported by outgoing Democratic Gov. Jim Doyle. "I have a soft spot for Mother Earth, but we can take care of both the environment and jobs."

Honadel will play a huge role in determining which energy bills make it across the finish line because of the legislator's power to control hearings in front of his committee, said Shahla Werner of the Wisconsin chapter of the Sierra Club.

The lawmakers's comments come as environmentalists and industry are watching Wisconsin closely for potential signals of priorities of new Republican governors and legislatures on climate and energy policy across the country.

In Wisconsin, the GOP now holds majorities in both the Assembly and the state Senate, along with controlling the governorship via incoming Republican Gov. Scott Walker. Before November's election, Democrats controlled both the governor's seat and the Legislature.

Cockpit of a Midwest revolt

A similar political shift occurred in the Midwest generally, with Republicans picking up governorships in Iowa, Ohio and Michigan in addition to Wisconsin. The GOP captured at least one chamber of the legislature in Michigan, Minnesota, Iowa, Ohio and Indiana.

"We're already seeing an unusual number of bills in several states introduced to change costly renewable mandates," said Clint Woods of the American Legislative Exchange Council, a nonpartisan group favoring conservative policies, about the impact of the elections in Wisconsin and elsewhere. Bills introduced this year in Indiana, Montana, Virginia and Missouri, for example, call for changes to existing renewable standards in those states. Most, but not all, were introduced by Republicans.

In Wisconsin, the first energy bill signed by the governor is likely to be a repeal of a moratorium on nuclear power plants, according to Honadel. The bill with repeal language is still being drafted, but has been approved by the new governor and will be introduced by a yet-to-be-determined lawmaker, he said.

Current state law requires builders of new nuclear plants to get a certificate verifying that the plant is "economically advantageous to ratepayers" and assuring that there is a facility available for spent nuclear fuel. Those requirements create a de facto ban on new nuclear, although the state has three existing reactors.

"The nuclear ban stifles creativity and engineering," Honadel said. "We could have been the leader instead of sitting idle on this technology."

Redefining 'renewable'

Honadel said Republican legislators plan to unveil "improvement legislation" on the renewable standard, which currently mandates that 10 percent of electricity come from renewable sources by 2015.

The likely changes would involve giving companies additional years -- perhaps through 2020 -- to meet the target, Honadel said. The legislator said he would like to see Canadian hydropower included as a renewable under the standard. There also could be a "bit of a debate" on whether nuclear should be counted as well, he said.

He said he was troubled by EPA regulations of greenhouse gases and that there might be some sort of legislation as a protest, although nothing has been finalized.

Honadel's comments signal a contentious relationship this legislative session with environmentalists, who are opposed to repealing the nuclear ban and changing the renewable portfolio standard.

There is a fight over Walker's decisions last week to shelve a planned biomass plant in favor of natural gas and to back a bill placing new restrictions on wind turbines (ClimateWire, Jan. 18).

"We're extremely concerned about [Walker's] seeming hostility to clean energy sources," said Keith Reopelle, senior policy director at Clean Wisconsin. Allowing Canadian hydropower to count as a renewable would disadvantage Wisconsin renewable companies, he said.

The cost of energy programs continues to be a source of debate, with environmentalists and industry and politicians pointing to widely different numbers on job creation and the price tags of policies such as renewable incentives.

Green groups on the defensive

Green groups say, for example, they will challenge any attempt to cut funding for the Focus on Energy program, which assesses a fee on utilities to help pay for renewable and efficiency improvements to homes and businesses. They cite a study on the program's website finding the program saves businesses $3.70 for each invested dollar.

However, Honadel said the current amount slated for the program -- some $740 million over four years -- is too much money in this economic environment.

A repeal of the nuclear moratorium is a bad idea, Reopelle said, because the issue of storage of nuclear waste fuel has not been addressed. Northern Wisconsin could become the "nation's high-level radioactive waste dump site," since the Department of Energy expressed interest in the area as a prime spot for nuclear storage, Reopelle added.

Most companies are on track to meet the current renewable target, so it makes no sense to weaken the already weak standard, said Werner of the Sierra Club. Any loosening of the standard would mean that more coal is shipped into the state, she said. Coal fires about two-thirds of the state's electricity. She called the wind-turbine bill a "disaster."

Honadel said he wants to work with environmentalists. An outright repeal of the state renewable mandate is not going to happen, despite some speculation to the contrary, he said.

The bill placing restrictions on wind turbines is contentious and needs a thorough debate in the Legislature before consideration, he said. Walker did not comment for this story, but Honadel said many have the wrong idea about him.

"I don't believe the governor is out to kill wind. That's not the mission here," he said.

Correction: The original version of this story contained an incorrect number for the state’s renewable standard by 2015.