Commentary: Make Big Wind Pay Its Own Way (January, 2016)

by John McClaughryJohn McClaughry

An intriguing battle is shaping up in the legislature, over industrial wind power.

On one side is the Shumlin administration, wind developers, and pro-renewable energy lobby groups like VPIRG.

The Governor has been a consistently outspoken advocate for renewable energy. He issued an edict in 2011 that Vermont must be made to obtain 90% of its total energy from renewables by 2050, in the name of defeating the menace of “climate change”.

Last year the Governor asked the legislature to pass a Renewable Portfolio Standard (renamed RESET) to mandate utilities to steadily increase their purchases of wind, solar, hydro, wood, and landfill methane power, until 75% of their power comes from these sources by 2032.

In his January state of the state address Shumlin strongly endorsed “more smartly-sited renewables to power Vermont”, and went on to favor “renewables on a Vermont scale…homegrown, not corporate grown.” But, curiously, he referred only to solar energy, completely ignoring corporate grown wind power on an industrial scale.

In the 2016 Comprehensive Energy Plan released last week, the Shumlin administration reiterates the “90% by 2050”  and “75% by 2032” goals, and proposes a strategy “to  facilitate development of in­state wind projects in order to achieve the state’s renewable  energy goals…”.

The report offers three scenarios for achieving 100% renewable electricity by 2050. Two of the three scenarios require increasing industrial wind generation (from turbines producing more than 500kw) to 750 Mw.

Achieving this level from instate wind farms would mean an increase of 631 Mw. At 2.75 Mw per turbine, this works out to 229 more ridgeline towers measuring 427 feet to the rotor tip.  However the best located and most efficient turbines produce their rated power only 37% of the time. To get the full rated power, there would have to be either many more turbines, or natural gas backup plants near each wind farm (unlikely), or backup power from the grid.

To make way for this flood of renewables, the administration has pushed Green Mountain Power to reduce its dependence on safe, low-cost, reliable, emission-free HydroQuebec electricity by 53% from 2011 to 2017. The Shumlin plan will surely cause Big Wind to see Vermont as “the Beckoning Country”.

On the other side of the issue are a rapidly increasing number of citizens and towns near present and proposed wind farm sites, joined by free marketeers disgusted with the corporate welfare subsidies, and some environmentalists concerned about the impact of huge turbines on wildlife, water, and viewsheds. Two Senate bills have been introduced to curb the wind explosion.

S.210, from Democratic Sens. John Rodgers and Bobby Starr of Essex-Orleans, would simply prohibit industrial wind towers. It has the advantage of simplicity, but it starkly threatens the Shumlin plan and the developers eager to install more turbines on Vermont ridges.

Another approach is contained in S.191, offered by Democratic Senator Jane Kitchel of Caledonia- Orange. It would require the Public Service Board to “defer to municipalities or regional recommendations [about proposed wind towers] unless there is a clear and convincing demonstration that [the proposed project] lacks a rational basis, or that other factors affecting the general good of the state outweigh application of the recommendation or measure.”

Translation: small rural towns and their citizen groups are welcome to bring their Big Wind objections into the labyrinthine PSB forum, and try to overcome “other factors affecting the general good of the state” urged by the Shumlin administration and the Big Wind legal team.  Lots of luck with that. They’ll be whacked like a careless raptor hit by a spinning turbine blade.

There’s a far better way to defeat Big Wind in Vermont. Big Wind developers are crucially dependent on an array of Federal tax subsidies. The vital one is the Production Tax Credit that gives the wind farm owner 2.3 cents per kwhr of power delivered.

Impose a 2.3 cents per kwhr environmental protection tax on every new industrial-sized wind project in Vermont.  That will exactly cancel the major federal subsidy that makes Big Wind profitable. Result: Vermont will never see another Big Wind project again.

A bill to achieve this fits on one page. No costly, complicated, prolonged and lawyer-intense PSB process. No arguments about municipal plans or regulatory takings. And, let it be noted, there won’t be any revenues from this tax, because there will never be another Big Wind installation in Vermont to produce power subject to the tax.

Problem solved.  Sorry, Governor.

-  John McClaughry is vice president of the Ethan Allen Institute (www.ethanallen.org).

{ 2 comments… read them below or add one }

Paul Slobodian January 24, 2016 at 1:57 pm

Re: “Impose a 2.3 cents per kwhr environmental protection tax on every new industrial-sized wind project in Vermont.”
Brilliant! An elegant and simple solution! I have to talk to the John Locke Foundation staff about using this approach in NC.
I think the AG investigation of Annette Smith may trigger a backlash against big wind and set the stage for something like this.

Reply

Paul Beane January 28, 2016 at 9:46 pm

A couple of these wind towers in Mr. shumlin’s back yard and he would most likely change his mind.

Reply

Leave a Comment

Previous post:

Next post:

About Us

The Ethan Allen Institute is Vermont’s free-market public policy research and education organization. Founded in 1993, we are one of fifty-plus similar but independent state-level, public policy organizations around the country which exchange ideas and information through the State Policy Network.
Read more...

Latest News

Tax Plan, Schmax Plan: It’s The Spending, Stupid

by Chris Campion The GOP has recently been working on tax reform, and both the House and Senate have versions of tax reform that are currently being hashed...

Renewable Policies Responsible for GMP’s $80 million rate increase

by Guy Page Green Mountain Power’s proposed 2018 5% rate increase will cost ratepayers $80 million, Vermontbiz.com said November 27. GMP spokesperson Kristen Carlson blames the hike on increased transmission, regional...

Exxon Mobil ‘s “Green Preening”

by John McClaughry Here’s a news item some will find surprising. The American Legislative Exchange Council is a conservative business-oriented association of legislators and corporation interests. Recently it...

New Hampshire Lowers Taxes, Raises Revenue

by Rob Roper The New Hampshire Union Leader recently posted an editorial about their legislature’s 2015 decision to cut taxes on New Hampshire businesses. The tax cuts are...

Survey: Do You Support the ESSEX Carbon Tax Proposal

TAKE THE SURVEY! Do you support the new “ESSEX” Carbon Tax proposal? This would ultimately be a $240 million tax on gasoline (32¢/gal), heating oil and diesel fuel...

Video