1 Howard Learner Executive Director, Environmental Law & Policy Center ABA Webinar on Renewable Energy: Legal Challenges & Solutions for the Green Economy October 28, 2009 Contact Info: RENEWABLE ENERGY AND GROWING THE GREEN ECONOMY

2 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.

3 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).

4 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

5 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)

6 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.”

7 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

8 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

9 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?

10 POLICY: RENEWABLE PORTFOLIO STANDARDS 29 STATES AND DC HAVE AN RPS – 5 STATES HAVE GOALS State renewable portfolio goal State renewable portfolio standard

11 NREL MIDWEST WIND RESOURCES MAP The “Willie Sutton Rule”

12 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?

13 SOLAR POWER DEVELOPMENT IS 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

The Environmental Law & Policy Center is the Midwest’s leading environmental legal advocacy and eco-business innovation organization.