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Wind Energy Development in the Great Lakes Region: Current Issues and Public Opinion utilities to have at least 25% of their energy to come from renewable sources by 2025.9 In contrast to other governments in the Region, the Illinois RPS mandates that wind energy is the primary technology within the renewable portfolio. State law requires that at least 75% of the renewable portfolio for the state’s two large investor-owned utilities, for example, come from wind.10 Siting authority and land-use regulations for commercial-scale wind turbines rest with the 2,700+ local government units in the state of Illinois.11 By contrast, the state controls how property taxes are assessed on wind equipment, though the revenues from these taxes largely go to fund local government. Specifically, the state standardizes valuation of each utility-scale turbine at a set rate of $360,000 for each megawatt of installed capacity,e and fixes a depreciation schedule that slowly reduces the taxable rate over the course of 25 years.12 Indiana Indiana is the only state in the Great Lakes Region which does not have a compulsory RPS. Instead, in 2011, the state enacted a voluntary “Clean Energy Portfolio Standard” (CPS) which provides publicly-owned utilities with financial incentives to increase their clean energy production to 10% of their total 2010 electricity sales by the year 2025.13 The program is very generous in which technologies may be used to meet the voluntary goal. These include not only the traditional wind, solar, hydropower, and dedicated energy crops, but also up to 30% of the goal can be met through clean coal, nuclear energy, combined heat and power, and natural gas, among other technologies. Even without a compulsory RPS, however, in 2012, 2.8% of Indiana’s electricity came from wind energy,14 and it had more wind turbines than four of the seven other Great Lakes states. The proliferation of windfarms in the state, in spite of the voluntary CPS, could be attributed to two factors: easier siting and property tax exemption. In Indiana, only cities, towns, and counties have been granted planning and zoning authority. As a result, wind turbine rule-making rests with the 92 Indiana counties, greatly simplifying the permitting process for wind developers, especially for windfarms that cross city/township borders. To further encourage wind development, the Indiana state legislature exempts installed wind equipment from local and state property taxes,15 constituting a significant cost savings to wind operators given the multi-million dollar price tag on utility-scale turbines. Michigan Michigan passed the Clean, Renewal, and Efficient Energy Act in 2008, which requires all utilities in the state to generate 10% of their electricity from renewable sources by 2015.16 This RPS requires energy projects to be physically located either in Michigan or within the utility’s service territory (i.e., northeastern Indiana) to count toward the target. While wind is one of the standard suite of technologies that count toward the goal, the Michigan RPS gives bonus credits to solar photovoltaic projects, rather than wind energy. Even so, given the comparative cost effectiveness of wind, wind energy is expected to make up 98% of the state’s renewables portfolio by 2015.17 Much like Illinois, land-use regulation of wind turbines in Michigan is left to the state’s 1,700+ local units of government. As a result, local municipalities have considerable say in where windfarms are sited. While the majority of the wind turbines in Michigan are in “the Thumb”—the agricultural region north of metro Detroit which boasts the state’s greatest onshore wind potential—the state’s largest windfarm is in Gratiot County in mid-Michigan, where wind resources are more modest, but local officials and landowners proactively sought wind development. Minnesota Minnesota’s RPS was signed in 2007 and requires all utilities in the state to increase the proportion of retail electricity sales from renewables in coming years.18 This builds on a 1994 law that required Xcel Energy, the state’s largest utility, to install 825MW of wind energy and 110MW of biomass-based generation by 2002, and set voluntary goals for each of the other utilities.19 As a result of this uneven starting point, the 2007 RPS law lays out different rules for Xcel and the rest of the utilities in the state; Xcel is required to get e Currently, it is $360,000 for each megawatt of installed capacity, so a 1.8MW turbine would be assessed at 1.8 x $360000 = $648,000. 5PDF Image | Wind Energy Development in the Great Lakes Region
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