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Wind Energy Development in the Great Lakes Region: Current Issues and Public Opinion Land-use regulation for wind turbines in Ohio, much like in New York and Minnesota, is based upon the size of the proposed project. Windfarms greater than 5MW are regulated at the state level by the Ohio Power Siting Board.35 Ohio offers wind developers a property tax exemption for “qualified” wind energy projects, though instead they must pay an annual fee to the county.36 Qualification is approved by the county government and is based upon job creation, plans to repair roads damaged during construction, training of emergency personnel, establishing a workforce training relationship with an Ohio university, and allowing Ohio-based utilities the right of first refusal to buy renewable energy credits (RECs) from the power generated.37 Pennsylvania Pennsylvania passed the Alternative Energy Portfolio Standards Act in 2004, and much like the Ohio RPS, the law covers both renewables and more-efficient fossil-fuel generation.38 The Pennsylvania law requires electric generation and distribution utilities to produce at least 8% of their energy from renewables by 2020. To encourage local production, renewable projects must be either sited within Pennsylvania or be met with RECs purchased from projects in the Region. Much like Michigan and Ohio, Pennsylvania’s RPS carves out a special niche for solar photovoltaic systems within the renewables portfolio. Specifically, it requires that 0.5% of each utility’s sales (or 6.25% of their total renewables) come from solar by 2020. As a result, of the eight Great Lakes states, only Michigan and Ohio produced a smaller percentage of their total electricity from wind energy as of 2011. All wind turbines in the state are regulated by one of the state’s 2,500+ local governments. While the state, in collaboration with electric utilities, developed a model wind zoning ordinance as guidance, localities are welcome to adopt alternate regulations.39 Wind energy generation equipment is exempt from property tax in Pennsylvania.40 However, state law requires county assessors to consider the value of wind-lease agreements when determining the value of the underlying land. This approach, therefore, is distinctly different from that in Minnesota, where the assessed value assumes that there is no wind development. Wisconsin Wisconsin enacted its first RPS in 1999, setting a statewide standard of 2.2% of all electricity from renewables by 2012. This was revised in 2006 to increase the standard to 10% by the end of 2015.41 All utilities in Wisconsin must participate in achieving the goal, but, unique to Wisconsin, the individual targets for each utility are based on their 2001 portfolio. Fundamentally, the law says that each year, all utilities must maintain their renewable energy portfolio percentage from the previous year. Further, in 2010 and 2015, utilities must increase their percentage by two and six percentage points, respectively, from the 2001 baseline. As of March 2012, land-use regulations for wind energy developments have been largely returned to the state after a number of years of local government control.42 The state’s siting rules apply not only to setbacks, but also to noise thresholds and public hearing notice requirements. All projects greater than 100MW are automatically sited at the state level. Local governments may choose to regulate projects between 0.3MW and 100MW, but they cannot adopt rules that are more restrictive than the state’s rules. Like Indiana, Wisconsin provides a blanket tax exemption to the property tax on renewable energy generation equipment, though many local governments instead assess a fee from the wind developer.43 Offshore Wind Energy in the Great Lakes Though offshore wind energy is expanding quickly in Europe, currently all windfarms in North America are on land. Offshore windfarms are appealing because they are able to take advantage of more consistent and higher quality winds that blow over water bodies, but also come with a range of challenges, from the technical (i.e., connecting turbines to the grid and performing maintenance) and economic to the social (i.e., public acceptance). There are additional challenges for siting turbines in the Great Lakes. Specifically, wintertime ice cover and ice heaving that may damage wind turbines and towers are a concern in freshwater but do not pose issues in saltwater. These challenges, though, have not stopped proposals to construct windfarms in the Great Lakes. In 2011, a 450MW Canadian windfarm was proposed for Lake Ontario before being stopped by a provincial moratorium on offshore wind development.44 In the US, a nine-turbine, 27MW project has been proposed for Lake Erie near Cleveland, Ohio,45 though an earlier project along the eastern shore of Lake Michigan failed to move ahead in the face of political resistance.46 7PDF Image | Wind Energy Development in the Great Lakes Region
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