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The Center for Local, State, and Urban Policy 30% of its energy from renewables by 2020, with at least 80% of that (or 24% of its total electricity) coming from wind energy. All other utilities must meet a 25% standard by 2025, with no stipulation on the mix of renewables. Minnesota’s wind development is substantially impacted by the state-mandated Renewable Development Fund (RDF), which was established in 1999.20 In exchange for allowing Xcel Energy to store waste from its nuclear power plants within the state, the company must annually invest in the fund. In 2012 alone, Xcel paid $19.5 million, $9.4 million of which is specifically earmarked for wind energy investments.21 As a result, Minnesota ranks fifth in the US in installed wind capacity (just behind Illinois), and fourth in the proportion of electricity that comes from wind.22 Since 1995, the state, not local, government, is responsible for all land-use regulation and siting of wind energy projects over 5MW.23 On medium-scale windfarms between five and 25MW, counties may request to assume siting responsibilities, but currently only one of the state’s 87 counties does so. Minnesota exempts wind energy equipment from property taxes, and instructs that the tax assessment of windfarm property should be based on the value of similar property without wind equipment.24 In lieu of a property tax, the state has a production tax that sets a maximum tax rate and distribution of revenues between county and local governments.25 However, the state also gives county governments discretion to waive or negotiate this production rate with wind developers.26 New York New York first enacted an RPS in 2004 with a target of 25% renewables by 2013.27 This goal was subsequently revised in 2010 to increase the target to 30% by 2015.28 The law exempts municipal utilities, including the New York Power Authority and the Long Island Power Authority, two of the largest utilities in the state. As a result of these exemptions and a comparatively large preexisting renewables base as a result of hydroelectric power, the law is expected to increase the state’s overall share of renewable energy by only six to eight percentage points.29 Unique to New York, a single agency—the New York State Energy Research and Development Authority—collects a surcharge from the utility (passed onto consumers) for each kilowatt-hour sold, which it uses to fund renewables projects to meet the RPS targets. The New York RPS specifies that 94% of the state’s new renewable energy should come from large-scale generation facilities (e.g., utility- scale wind farms or solar arrays), with the remainder coming from small on-site generation (e.g., roof-mounted solar panels or small wind turbines), and with wind as one of only a few specified eligible sources. Much like Minnesota, New York sets land-use regulations and approves site plans for commercial-scale windfarms at the state level. The original law reserving energy project siting decisions to the state level was enacted in 1992 and expired in 2003, placing siting decisions back in the hands of local municipalities.30 For the rest of that decade (2003-2010), electric utility companies complained that it was nearly impossible to get any type of power plant—renewable or otherwise—through the local land-use regulation process. As a result, in 2011 New York reinstated the 1992 law for all energy infrastructure projects that exceed 25MW.31 The law requires that the state take into consideration local regulations, and sets up a fund for local stakeholders to participate in the state process. New York State exempts property taxes on wind energy generation equipment, though this regulation is set to expire at the end of 2014.32 While originally drafted as a mandatory exemption, a 2002 revision to the law allows counties, towns, villages, and school districts to opt-out of the exemption—effectively allowing property taxes to still be levied on windfarms. To date, five counties, 38 towns/villages, and numerous school districts have opted out of the exemption.33 Ohio Ohio’s RPS was enacted in 2008 and covers both renewables and more-efficient fossil-fuel generation.34 The renewables component requires each utility to have 12.5% renewable energy within their portfolio by 2024. At least half of the energy projects each utility uses to meet this target must be sited in Ohio. Much like the Michigan RPS, solar energy, rather than wind, receives special treatment in Ohio. Specifically, the law sets yearly targets for energy derived from solar photovoltaic systems, requiring 0.5% of each utility’s power (or 4% of their total renewables) to come from solar by 2024. As a result of a comparatively lower RPS goal and specific targets for solar energy, Ohio currently has the least amount of installed wind energy of all eight Great Lakes states. 6 www.closup.umich.eduPDF Image | Wind Energy Development in the Great Lakes Region
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