Governor’s Task Force Reaches Agreement on Global Warming Strategy

Thursday, July 10, 2008 11:04 AM CDT

Last month, Governor Jim Doyle’s Task Force on Global Warming voted on emission reduction targets and key recommendations to address global warming in Wisconsin. The Task Force, comprised of a variety of environmental, industry and utility leaders and other stakeholders, will forward the recommendations in a final report to be delivered to the Governor in late July.

The Governor’s Task Force on Global Warming agreed on a group of targets to reduce greenhouse gas emissions to 2005 levels by 2014 and 22 percent below 2005 levels by 2022. The long-term target is a 75 percent reduction below 2005 levels by 2050.

Highlights of the revised Co-Chair Compromise Proposal include:

- Early Action to Reduce Emissions - The Task Force’s Interim Report recommendations on conservation and efficiency provide an essential and important foundation for early action. PSC would reopen the 2008 Strategic Energy Assessment and require utilities to file greenhouse gas emissions inventories, plans for voluntary reductions with costs and impacts, and identification and analysis of other measures that could be taken. The PSC reviews voluntary actions and goals and utilities publicly report on progress.

- Enhanced Renewable Portfolio Standard Revisions n 10 percent by 2013, 20 percent by 2020 and 25 percent by 2025. No expiration of renewable energy credits. Expansion of what qualifies: thermal portion of biomass co-gen projects, biomass put into gas pipeline, solar water heating, other verifiable renewable applications that displace fossil fuel use, and conversion of older industrial coal-fired boilers to biomass. A minimum of 6 percent of the 20 percent by 2020 must come from Wisconsin-based renewables. A minimum of 10 percent of the 25 percent by 2025 must be Wisconsin-sourced, including Great Lakes wind. For the post-2013 standards, energy from new, large hydro projects, including Manitoba, qualify. All other Act 141 provisions continue to apply, including off-ramps.

- Long-Term Generation Options - In addition to carbon capture and sequestration study, Wisconsin’s nuclear moratorium would be modified once enhanced energy efficiency and renewable policies are in place by adding a requirement that any proposed nuclear plant or replacement of an existing nuclear unit, regardless of size, obtain a Certificate of Public Convenience and Necessity (CPCN) from the PSC; replacing requirement of a federally licensed nuclear waste facility with requirement that the PSC must find that the nuclear waste plan for the plant is economic, reasonable, stringent, and in the public interest, given safety concerns; allowing PSC, in addition to its existing right to apply for an extension of the 180-day time limit to act on a CPCN, to seek a longer extension in the case of a nuclear unit for a reasonable but defined period; and adding a requirement that the plant must be built to meet Wisconsin needs and the cost must be reasonable in comparison with alternatives. While such a plant may be owned by an entity other than a Wisconsin utility, it would be subject to Wisconsin regulatory oversight.

- Other Utility Policies - Support for increased R&D for GHG emissions reduction technologies, particularly renewables and clean generation technologies, and R&D for climate change adaptation strategies.

- Transportation - Support for a single, nation-wide set of vehicle efficiency standards like the California standards that are more aggressive than current federal CAFE standards, recognizing that Wisconsin will not decide this issue. Strong support for a state and local action plan to work with GM to take advantage of Wisconsin’s highly skilled labor force and existing supply chain to manufacture smaller, highly efficient vehicles in Janesville, and assistance in market transformation to improve sales of such vehicles. A low-carbon fuel standard that is technology and feedstock neutral. Policies to enable, businesses and individuals to lower the miles they drive, without curtailing freedom of choice.

- Industrial Programs - Emissions are declining in the sector. Support for additional voluntary and incentive programs proposed by industry group.

- Agriculture and Forestry - Support voluntary program and incentive recommendations proposed by the agriculture and forestry sector, but if by 2012 progress is not being made, reconsider need for mandatory measures, with consideration of appropriate funding. Provide assistance to farmers to cultivate the next generation of energy crops to foster the development of bio-energy sources. These sources will provide essential feedstock for fuels to meet the low carbon fuels standard and increased use of biomass for heat and energy production.

- Other Policies - Recommend that the state put responsibility in a single entity to continuously review additional policies to reduce emissions and develop recommendations.

- Cap and Trade - A broad, multi-sector federal cap and trade program that is fair to Wisconsin is recommended. Wisconsin also should continue to actively participate and lead in the Midwestern Governors Association (MGA) effort to develop a regional cap and trade program, and follow through on any MGA cap and trade agreements that are developed, as required and appropriate. A Wisconsin-only cap and trade program should not be pursued.

Many other policies that will be recommended by the Task Force in its Final Report are not controversial and demonstrate the high degree of consensus achieved to date, as does the Task Force’s Interim Report issued to the Governor on a unanimous basis in February

For more information on the Governor’s Task Force on Global warming, or to make comments, visit the Task Force website at http://dnr.wi.gov/environmentprotect/gtfgw.

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