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Howard LearnerExecutive Director,

Environmental Law & Policy Center

ABA Webinar on Renewable Energy:Legal Challenges & Solutions

for the Green EconomyOctober 28, 2009

Contact Info: HLearner@elpc.org, 312-673-6500

RENEWABLE ENERGY AND GROWING THE GREEN ECONOMY

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THE GLOBAL WARMING SOLUTIONS IMPERATIVE – A DRIVING FORCE

• Solving our global warming problems is the moral, business, economic, policy, political and technological challenge of our generation and the next generation.

• This is a reality, not a trend. It is a driving force for our society and our economy.

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GROWING THE GREEN ECONOMY

• We can and must have environmental progress and economic development together. The false trade-off of jobs versus the environment has been rejected by the public and most of the political leadership.

• President Obama has made green economy principles and the need for dramatic federal global warming solutions policy action a driving force of his national leadership.

• If you’re not engaging as part of the solution, then you’re part of the problem (and politically ineffective, or worse).

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THE PIVOTAL MIDWEST STATES Illinois, Indiana, Iowa, Michigan, Minnesota,

Ohio & Wisconsin

Seven Midwest States =

• 25% of US CO2 pollution

• 5% of Global CO2 pollution

• More CO2 pollution than all nations except China, India, Japan, Russia

• Greatest # Old Coal Plants

• Transportation System Infrastructure Center

• Key Swing Votes in the Senate on Energy, Global Warming and Many Environmental Issues

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THE PIVOTAL MIDWEST STATES – POLICIES THAT MATTER TO PRACTICAL PEOPLE

It’s about solutions that matter to practical Midwesterners:

• Jobs (Clean Energy & Clean Cars “Jobs of the Future”)

• Economic Development & Growth (Windpower & Clean Cars)

• New Income to Save Our Family Farms and Hard-Pressed

Rural Communities (Windpower and Biofuels)

• Our Children’s Health (Mercury from Coal Plants and Less Pollution from Cars)

• Our Environment – our Great Lakes, our fishing lakes, rivers and forests (Mercury, SO2)

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THE PIVOTAL MIDWEST STATES – WIN-WIN-WIN MESSAGE ON CLEAN ENERGY

SOLUTIONS TO OUR GLOBAL WARMING PROBLEMS

Two-Step Message:

“Wind power development is a win-win-win for farmers’ income, rural economic development and the environment. AND It helps to solve our global warming problems.”

“Modern clean energy efficiency technologies are a win-win-win for jobs, economic growth and the environment. AND They help to solve our global warming problems.”

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CLEAN RENEWABLE ENERGY DEVELOPMENT

A Win-Win-Win Strategy for Engaging Legislators & Policy Leaders and Bridging to Global Warming:

• Farm Income Strategy• State Rural Economic Development Strategy• Environmental Progress Strategy: Achieve Clean

Air/Water and Public Health Benefits

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WIND POWER DEVELOPMENT – WHAT IS NEEDED?

• Windy Site (North Dakota > Illinois)

• Transmission Access and Availability (Illinois > North Dakota)

• Near A Market for Electricity (Chicago > Fargo)

• Policy Support – RPS, Interconnection (Illinois > North Dakota)

• Access to Capital

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TRANSMISSION CHALLENGES

• Access for Clean Renewables or More “Dirty Coal”?

• Which Generator Gets the New Transmission and Why?

• Who Pays for the New Transmission? The Generator, the Buyer, the In-Between States? How to Allocate the Costs?

• Will Federal Eminent Domain Really Work? Is It Fair?

Is It Constitutional? FERC v. Mississippi and SWANCC

• Should Projects with Less Transmission Needs Be Favored?

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POLICY: RENEWABLE PORTFOLIO STANDARDS

29 STATES AND DC HAVE AN RPS – 5 STATES HAVE GOALS

State renewable portfolio goalState renewable portfolio standard

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NREL MIDWEST WIND RESOURCES MAPThe “Willie Sutton Rule”

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RPS IN-STATE PREFERENCES

• Illinois and Many States Have In-State Preferences

• Capturing Value of Local Economic Development & Environmental Quality Benefits vs. Lower Prices from Larger, More Liquid Market

• Dormant Commerce Clause Problem? Justify In-State Preference by Gaining Air Quality Benefits in Non-Attainment Areas?

• Justify When Ratepayer/Taxpayer $ Being Spent?

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SOLAR POWER DEVELOPMENTIS COMING FAST!

• Available at Peak Times When Prices Are High

• Price of Solar PV Modules Falling to $3/watt – Excess Supply

• Locate at Old Industrial Sites with Substations, Few Neighbors,Clear Solar Access

• Transmission Grid Support and Access at 10 MW – 20 MW

• Big Enough Projects to Get Installation Unit Costs Down

• Lush Federal ITC and Other Fed/State $ Support

• RPS – Solar Carve-Outs, Feed-In Tariffs, Rate Design

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www.ELPC.org www.RepowerMidwest.org

www.GlobalWarmingSolutions.org

The Environmental Law & Policy Center is the Midwest’s leading environmental legal advocacy and

eco-business innovation organization.