Nov 13 - The Milwaukee Journal Sentinel



Gov. Jim Doyle's global warming task force aims to cut greenhouse emissions 22% by 2022, but a debate continues over the economic cost.

According to a study released on Thursday, some recommendations from the task force could eliminate 43,000 jobs in Wisconsin and reduce personal income by nearly $8 billion over the next 11 years.

The study, commissioned by the Wisconsin Policy Research Institute, said that "Wisconsin will experience a shock to its economic well being" that will make it hard for the state to recover.

The state's energy-intensive paper industry will be especially hard hit, the study says.

The study was produced by Beacon Hill Institute, of Boston, which describes itself as "grounded in the principles of limited government, fiscal responsibility and free markets."

The work is likely to be part of the policy debate when the Legislature takes up climate legislation early next year. Legislation stemming from the task force is expected to be introduced in December and could be debated in January.

The report examined a dozen key proposals from Doyle's task force, including requirements that 25% of Wisconsin's energy coming from renewable sources by 2025, low-carbon fuel standards and higher energy efficiency standards. The study did not compute the costs of cap-and-trade legislation, which places limits on carbon emissions by companies.

Doyle's bipartisan panel voted 26-3 on the recommendations in July 2008, with the governor saying that states need to act to reduce emissions of carbon dioxide.

But some business groups have worried about the costs of the legislation.

"Wisconsin is in the midst of one of the worst recessions in our history, and new costly, state-only regulations would make us even more uncompetitive," said James S. Haney, president of Wisconsin Manufactures & Commerce in a statement.

Roy Thilly, co-chairman of Doyle's task force, said he had not yet reviewed the Beacon Hill Institute study but expects parties on both sides to release studies tilting one way or the other. Thilly said that any type of climate legislation will likely increase costs for energy intensive businesses.

Thilly said the study appears to have not considered the environmental and economics effects of ignoring climate change.

"If you don't accept that premise, the debate is entirely different," said Thilly, president and chief executive officer of Wisconsin Public Power Inc., a Sun Prairie-based regional power company.

Thilly said that many of the proposals -- for example, the 25% renewable fuels standard and higher energy efficiency standards -- will generate jobs in Wisconsin.

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