Cathy L. Hartman, Ph.D. and Edwin R. Stafford, Ph.D. Co-Directors Center for the Market Diffusion of Renewable Energy and Clean Technology Western Extension Directors Conference Thanksgiving Point, Utah April 1, 2009

Dean Davis, Windward Engineering -- “small turbine” test site Class 6 – “outstanding” wind resources

Davis contacts Tracy Livingston of Wasatch Wind

Wind Project Development Space frame towers Crane-free “Hi-Jack” system

Spanish Fork is not on the map!

 Municipal, state, and federal policies  Siting issues  Market uncertainties  Turbine shortage  Procuring investors  NIMBY – Community concerns

 April 2005 – Wasatch Wind distributes 3000 flyers to residents within one mile of site  Only 50 residents attend meeting  Livingston presents plan

 Noise level at 50 decibels = traffic noise on nearby Highway 6 between 1 a.m. and 4 a.m.  Avian study – no threat identified

 Land leases  Property tax revenues  Dividends to investors  Reduced coal-fired power pollution

“… the ugliest and most ungodly thing you’ve ever seen.”

“… with windmills, I can see the mountains. With haze from coal plants, I can’t see the mountains.”

 Wasatch Wind applies for re-zoning  Residents, again, divided: “It’s going to detract from our mountains” “It will be an improvement as the gravel pit is already an eyesore” “It is a better alternative to mass suburban development”

Destined to become the nation’s most urbanized wind project!

 Negotiation of power purchase agreement (PPA) with Rocky Mountain Power ( )  Procurement of equity investors

 Monopoly utility for most of Utah – Not a free market!  Key issues: ◦ No established cost-determination method ◦ Needed to set Utah pricing policy

 Avoided cost – “old coal versus new wind”  Livingston’s breakeven 6 cents per kWh

 Avoided cost – “old coal versus new wind”  Livingston’s breakeven 6 cents per kWh Rocky Mountain Power offers only 4.7 cents per kWh Public Service Commission steps in

 Least Cost/Least Risk Mandate  Old coal was cheaper than new wind – but is it less risky?  Livingston argued that “least cost” mandate emphasized “plan for today, but not for the future”

 Livingston procures 5 to 6 cent per kWh deal with RMP  Delay results in loss of key investor, John Deere

 January 2006, local TV channel re-broadcasts the April 2005 zoning approval meeting…

 Re-broadcast sparks public outcry – citizens demand moratorium

“Monstrous, colossal, shocking…” Property values “will plummet … if turbines are erected” “I’m not against ‘green energy,’ but we’ve been poorly informed”

“Monstrous, colossal, shocking” Property values “will plummet … if turbines are erected” “I’m not against ‘green energy,’ but we’ve been poorly informed” Livingston caught completely off-guard!

Spanish Fork wind project – his first order of business! Mayor Thomas asks residents to: “Open your mind up and let one word in … think – options!” Appoints a three-member resident board

Spanish Fork wind project – his first order of business! Mayor Thomas asks residents to: “Open your mind up and let one word in … think – options!” Appoints a three-member resident representative board March 2006, compromise reached – wind park to move up the canyon !

 City had to annex new project location  New land leases had to be signed  Water well issue had to be approved

Time delay cost Wasatch Wind an additional $300,000, but … The process brought greater trust between Wasatch Wind and the residents of Spanish Fork

 In 2006, legislature fails to renew the sales tax credit  Legislature eventually renewed the credit in 2007… however…

 Falling dollar drives up costs (increased 17% in 2006 and another 14% in 2007)  Turbine shortage due to booming growth – 18 month back-order (imported from outside U.S.)

 Spanish Fork offers 70 percent property tax reduction “We’re going to rebate something we never would have gotten in our lives, and we get to keep a big chunk of it, so it was a no-brainer.” Mayor Joe Thomas

 Takes over project  Tracy Livingston and Wasatch Wind continue to be advisors

September 2008

 Outreach and engagement – policymakers and citizens within the “view shed” of the project

 Build relationships with local champions – Dean Davis, Mayor Joe Thomas, ex-foes

 Outreach and engagement – policymakers and citizens within the “view shed” of the project  Build relationships with local champions – Dean Davis, Mayor Joe Thomas, ex-foes  Explore compromises

 Outreach and engagement – policymakers and citizens within the “view shed” of the project  Build relationships with local champions – Dean Davis, Mayor Joe Thomas  Explore compromises  Persistence

 Construction ◦ $4 million in economic output during construction ◦ Supported 38 jobs, totaling $1.4 million  Operations in 2009 ◦ $74,000 land lease payments ◦ $112,000 local property taxes* ◦ $84,000 for Nebo School District* ◦ Supports 7 jobs total (2 on-site) ◦ $576,000 in economic output * Reflect 70% revenue reduction incentive

Energy Transportation Buildings Marketing & Public Policy Cathy L. Hartman Edwin R. Stafford