Apr 13 - McClatchy-Tribune Regional News - Thomas Content and Lee Bergquist Milwaukee Journal Sentinel



A revised state clean energy and global warming bill unveiled Tuesday scales back the scope of the legislation but retains a commitment to expand use of renewable energy and opens the door to construction of nuclear reactors in Wisconsin.

The revisions were drafted in response to concerns raised by business groups and politicians that the original bill was too unwieldy, too controversial and potentially too costly.

Jettisoned from the package were mandates concerning transportation fuels, including one modeled on California's tailpipe emission standard and another requiring greater use of low-carbon transportation fuels such as biofuels.

To reduce the overall cost of the package, the bill allows energy efficiency gains to count toward a portion of a mandate that 25% of Wisconsin's electricity come from renewable power sources by 2025.

 A combined energy efficiency and renewable energy standard is also part of federal legislation that passed in the U.S. House of Representatives last year.

The state bill would allow one-fifth of the mandate to come through energy savings, most likely through initiatives by factories and other big energy users.

Another change addresses concerns raised by utilities over a mandate that had been in the earlier bill concerning small renewable energy projects around the state. The mandate has been replaced with expanded funding for small renewable energy projects. The new proposal states a preference that much of that money be allocated toward manure digesters on Wisconsin dairy farms.

The bill will be added to a heavy legislative docket, and faces strong opposition from Republicans and some business groups.

One of the bill's authors , Rep. Spencer Black (D-Madison), said he believed the measure would be passed by both houses of the Legislature and signed by Gov. Jim Doyle.

In a statement Tuesday, Doyle termed the revised bill "a good compromise that will bring down consumer costs," adding, "Wisconsin is a manufacturing state and we can't afford to lose this opportunity to become a leader in solar and wind manufacturing to other states and countries like China."

The latest version also underscores the consequences of the weak economy and declining sentiment for taking action on global warming.

Doyle signed an executive order creating the task force in April 2007 -- well before the collapse in the economy. In December 2009, after details were known, many business groups attacked it and said the recommendations would harm the energy-intensive manufacturing sector.

But some other industries and companies, notably Johnson Controls, the state's largest public company, said the bill would create jobs and align the state to take advantage of emerging trends in sustainability.

At the same time, the public appears less concerned about climate change. A national Gallup Poll in March showed that the percentage of respondents who believe the seriousness of global warming is "generally exaggerated" has increased from 35% to 48% in two years.

"As introduced, the Clean Energy Jobs Act would reduce greenhouse gas emissions, create jobs, and help keep rising energy bills in check," said Keith Reopelle, senior policy director at the environmental group Clean Wisconsin, said in a statement. "The substitute amendment represents a compromise that will still accomplish all of these goals, but to a lesser degree than the original bill."

Clean Wisconsin is still reviewing the details of the changes.

"As we understand them, the changes in the substitute amendment will result in even more jobs and lower energy bills in the next few years by increasing short-term commitments to energy efficiency," Reopelle said. "However, paring back the renewable energy standard will likely result in less rate relief in the long term, because renewable energy helps hedge against the rising cost of fossil fuels."

The bill is still opposed by groups representing manufacturers including the Wisconsin Industrial Energy Group.

"The slimmed down version of the governor's global warming legislation still has billions in unnecessary costs," said Todd Stuart, WIEG executive director. "The most expensive provisions of the governor's global warming task force remain in the new substitute amendment."

Black called such talk 'ideological rhetoric' and said that studies show that the move to renewable power will create jobs and keep dollars spent on natural gas and coal in the state.

Three Republican lawmakers said they remain concerned about the cost of the legislation, and called for a full cost-benefit analysis of the package.

Noting that electricity rates are rising in Iowa and Minnesota to pay for more wind power, Rep. Mike Huebsch, R-West Salem, said, "Why we should going down the path to higher energy costs is beyond me."

In a statement, the co-authors of the bill -- including Sen. Mark Miller (D-Madison), Sen. Jeff Plale (D-South Milwaukee) and Rep. Jim Soletski (D-Green Bay) said they have asked the Public Service Commission to provide an updated cost analysis of the bill, based on the amendment.

Roy Thilly, a utility chief executive who co-chaired the state global warming task force, said in an interview that the initial bill represented the full recommendations of the panel -- but that the revised bill responds to concerns raised at public hearings about the proposals.

"They've done a really good job listening to what everybody said and they've made any number of changes," he said. "It's their bill now. They made some very substantial changes and fixed a number of problems that were identified."

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