A WIND VISION FOR NEW GROWTH IN New research shows how expanding wind energy will benefit state economy

A New Era for in the United States wind energy under the Wind Vision U.S. Department of Energy scenario would result in Michigan Wind Vision report shows landowners receiving over $4.71 million dollars in annual payments potential benefits for Michigan by 2020, increasing to over $7.65 with continued expansion of million dollars annually by 2030. wind power in the state.  Michigan farmers and A definitive new report recently families stand to benefit from released by the U.S. Department of significant freshwater savings Energy (DOE) shows huge potential and cleaner air by harvesting for wind power in Michigan and even more electricity from wind ENOUGH ELECTRICITY throughout the United States. The energy. DOE’s “Wind Vision: A New Era for Wind Power in the United States” Continuing to grow Michigan-made wind power offers tremendous water TO POWER finds wind energy could grow from supplying over 3.66% of the conservation and clean air benefits electricity generated in Michigan as well. Meeting the Wind Vision today to 4.8% by 2020 and more scenario would result in more than than 6.8% by 2030 – producing 616.33 million gallons of annual $ electricity for the equivalent of water savings by 2020, and by 2030 710,000 average American homes.* those savings grow to over 4.4 11.6 billion gallons a year. Generations Achieving the Wind Vision in of Michigan families also stand to Michigan would provide the state benefit from added clean air benefits with numerous benefits, including by harvesting more of the state’s MILLION electricity from wind energy. By 2030  $3.59 billion dollars in total wind energy produced in Michigan electricity bill savings through would avoid over 9.6 million metric 2050. tons of carbon pollution a year, or IN ANNUAL 710,000 2.02 million cars’ worth of emissions. With the continued expansion of wind power, Michiganders would  Homegrown Michigan wind PROPERTY TAX also benefit from the addition of energy can save consumers HOMES new well-paying jobs and added money and boost local revenues flowing into state coffers. economies for years to come. REVENUE BY 2020 BY WIND BY 2030 Property tax revenues could exceed $11.62 million dollars annually by With a wind resource rich enough 2020, and more than $17.09 million to supply 163% of Michigan’s dollars annually by 2030 due to new current electricity needs – at prices development. increasingly competitive with conventional fuels - expanding this Farmers and other rural Michigan clean, abundant form of homegrown landowners currently receive an energy is a win-win solution for estimated $4.59 million dollars a year Michigan to boost economic in land lease payments for hosting development well into the future. wind turbines. Further expansion of

* While the DOE projections are encouraging, they do not include projections for the expected growth of wind power in the state resulting from the Clean Power Plan (CPP). In analyzing the draft CPP rules, the U.S. Energy Information Administration found that A New Era for Wind Power in the United States Michigan could add an additional 5,724 megawatts of low-cost wind by 2025 to help meet emission reduction requirements. See, e.g. American Wind Energy Association, EIA analysis shows wind is most cost-effective option for Clean Power Plan compliance, available at http://awea.files.cms-plus.com/AWEA%20report%20on%20EIA%20CPP%20analysis%20July%202015.pdf WIND VISION FOR GROWTH IN MICHIGAN 2 DOE report: Wind can become consumer savings and cumulative one of the leading sources of savings on U.S. electric bills totaling U.S. electricity by 2050 $149 billion. If fossil fuel prices MILLION increase more than expected, electric consumers would start to IN ANNUAL LEASE The DOE’s Wind Vision report finds see direct savings even sooner. that wind power could supply 10% of the entire U.S. electricity mix by PAYMENTS TO  Expanded use of wind power $ 2020, 20% by 2030, and 35% by would benefit public health MICHIGAN FARMERS 2050 – making wind energy one of 7.6 and prevent 22,000 premature the leading sources of electricity deaths. AND OTHER RURAL in the country. That growth would LANDOWNERS BY 2030 widely benefit the U.S. economy and The positive clean air benefits of environment. powering Michigan and the U.S. with more wind energy creates  Meeting Wind Vision scenarios an economic opportunity as well. could create 380,000 well- Cumulatively through 2050, wind’s paying jobs by 2030 and bring pollution reductions would avoid billions of dollars in consumer $400 billion in climate change savings to the U.S. by 2050. damages and would save an additional $108 billion in public The positive benefits that wind health costs by cutting other air energy’s growth can bring to the $ pollutants, including the prevention American economy are significant 3.59 of 22,000 premature deaths. In – especially in the increasingly some years drought conditions competitive global wind energy affect many Michigan farmers market. The U.S. currently ranks and rural landowners across the number one in the world in wind BILLION state. According to DOE’s Wind energy production, ahead of China Vision, wind energy has the ability and Spain, providing enough to conserve 260 billion gallons electricity to power the equivalent of freshwater annually by 2050, of 18 million average American BILLION IN TOTAL displacing 23% of total U.S. power homes. Today, American wind plant water usage. GALLONS OF power supports 73,000 well-paying jobs, including nearly 20,000 ELECTRICITY The benefits of America’s wind manufacturing jobs at over 500 energy are of national importance. FRESH factories in 43 states. By highlighting several case studies, BILL SAVINGS this report shares the success story By reaching 20% of the nation’s of wind energy in the Great Lake electricity mix by 2030, wind energy WATER State and for the first time ever FOR MICHIGAN could create an additional 380,000 releases new state-specific data CONSERVED well-paying jobs across the country, from the DOE’s Wind Vision report increasing to 600,000 by 2050. that shows what’s possible with wind EVERY YEAR CONSUMERS Beyond job growth, by 2050 wind power’s continued rise. could provide $14 billion a year in BY 2030 THROUGH 2050

A New Era for Wind Power in the United States WIND POWER IN MICHIGAN TODAY 4 “Growing wind power in Wind power in Michigan helps protect Michigan today the for future generations. Further Wind energy capacity Wind farms provided over 3.6% of the electricity generated in Michigan at the tapping into our state’s end of 2014, ranking the state 14th in the country. Michigan has 887 wind turbines wind energy resources currently installed, comprising 1,531 megawatts (MW) of wind power capacity will foster and enable - enough to power 355,000 homes. That total ranks the state 15th in the country, with an additional 30 MW of capacity innovation, while creating under construction. a career path for young Economics

people. By growing Michigan is a leader in and component manufacturing with 33 factories spread across the state. These facilities have attracted significant investment as part of the wind chain, including the arrival of Monroe-based wind power nationwide, Ventower Industries, Michigan’s first wind tower manufacturing facility.

America will gain Current benefits from Michigan-made wind power include: (1) $2.9 billion in total wind farm investment; (2) $4.6 million dollars a year in land lease payments to financial, energy, and Michigan landowners; and (3) up to 4,000 well-paying Michigan jobs. environmental security.” Environment + public health benefits

Generating wind power does not create pollution or use water. The wind power RICH VANDER VEEN, produced in Michigan currently saves 799.1 million gallons of water every year, PRESIDENT, MACKINAW POWER equivalent to 6.1 billion bottles of water, and avoids 1.3 million metric tons of carbon pollution annually, or the equivalent of 268,000 cars’ worth of carbon emissions.

5 WIND POWER IN MICHIGAN TODAY A New Era for Wind Power in the United States Founded in 2008, Monroe-based wind design – driving down the cost of wind tower manufacturer Ventower is a full power in the last few years,” said Scott service fabricator and supplier of utility Viciana, Vice President at Ventower. and distributed-scale wind turbine “The result is that wind power is more towers. The company has recently affordable than ever, and our business experienced rapid growth, expanding keeps growing.” Ventower their workforce by adding 51 new employees over the past year. Ventower recently supplied all 62 towers for the Consumers Energy Working with industry leaders GE, Crosswinds Energy Park project in Gamesa, and Siemens, Ventower’s Tuscola County, and supplied all 10 115,000 square foot facility produces towers for the Heritage Sustainable 90 meter and taller towers (300 feet) Energy Big Turtle project in eastern that are shipped to Michigan-based Huron County. The company also projects and beyond. continues to build their inventory in anticipation of increased demand in “We’ve seen advances in technology coming years with the implementation – taller towers paired with higher of the Clean Power Plan and 40 efficiency and energy output due to gigawatts of new wind power projected longer blades and improved nacelle for the MISO region.

A New Era for Wind Power in the United States CASE STUDIES 8 Gratiot County Wind Park “Wind power Key facts , about half of this 212.8 MW project is now development is • Job Creation: 200 full-time owned by the local utility DTE jobs during construction, with Energy. The project generated a great way to 17 full-time permanent more than $30 million in workers. direct payments to Michigan construction contractors bring added tax • Private investment: and material and equipment $30 million in direct payments suppliers during construction. revenue to rural to Michigan contractors The project also generated an during construction. additional estimated $750,000 in local revenue for food, communities • Amount of wind installed: lodging, and other expenses. The 212.8 MW project while also provides enough electricity to Livonia-based Aristeo power more than 57,000 Construction led the on- providing price average American homes. site construction of the project, including the civil • Community benefits: sitework, concrete foundation stability for The wind farm provides a placement, and tower and significant increase to the tax wind turbine generator consumers.” base of the county, new jobs erection. In total, the project in highly skilled technical created 200 full-time jobs KEVIN E. PARZYCK, positions and a steady, during construction, and reliable income stream to the now employs 17 full-time VICE PRESIDENT, DEVELOPMENT, landowners who host the workers for operations and INVENERGY turbines. maintenance.

 “Michigan has terrific wind resources. This was our first project in the Project description state, and as the cost of wind power continues to Located along U.S. route decline, we expect the 127 north of Lansing, the state will increasingly rely Gratiot County Wind Park is on low-cost wind to meet one of the most recognizable its future electricity needs,” wind power projects in the Kevin E. Parzyck, Vice state. Completed in 2012 by President, Development, renewable power developer Invenergy.

A New Era for Wind Power in the United States CASE STUDIES 10 EDF RENEWABLES SERVICES FOUR “The operations and OF THE LARGEST maintenance of wind WIND PROJECTS projects is a rapidly IN MICHIGAN growing sector in the renewable power industry. Since developing more low-cost wind power is

Key facts are performing at their full its services, EDF RS provides one of the best ways to potential. EDF Renewable project oversight and • Local jobs, local Services, Inc. (EDF RS) is constant remote monitoring meet the requirements of education: EDF employs contracted to service four from its operations control 25 fulltime O&M workers, of Michigan’s largest wind center. all of whom live in-state and projects, and employs 25 in- the Clean Power Plan and many of which were trained state workers. The company Onsite O&M workers at local community colleges has seen the O&M side of its typically have expertise with and technical schools. business rapidly expand in mechanical and electrical state Renewable Portfolio recent years, growing 13% work, and are often tasked • Growing sector: EDF has from 2013 to 2014, and an with climbing the tall towers, Standards, we expect to seen its O&M business grow incredible 418% since 2007. equipped with heavy tools 418% since 2007, and its In total, EDF RS now employs and high voltage equipment. O&M division now employs 600 O&M workers across see continued growth and 600 workers across North North America. Responsible for maintaining America. and supervising the As the largest third-party Brookfield, Thumb, Echo, and new job creation in this provider of O&M services Gratiot wind parks, EDF RS In-state operations in North America, EDF RS oversees 400 MW of power in sector for years to come.” typically looks to hire locally, the state. These projects are Wind farms, like all utility- and many of the workers capable of producing enough DALEN COPELAND, VICE PRESIDENT, scale power sources, require employed at the Michigan electricity to power nearly ongoing operations and projects were trained at local 109,000 average American BUSINESS DEVELOPMENT, EDF RENEWABLE SERVICES maintenance (O&M) services community colleges and homes. to ensure that the facilities technical schools. As part of

A New Era for Wind Power in the United States CASE STUDIES 12 How will Michigan benefit from expanding wind power?

The latest data from DOE finds wind energy could provide 4.8% of Michigan’s electricity by 2020 and more than 6.8% by 2030. The wind energy produced in Michigan alone would power the equivalent of 710,000 average American homes by 2030. The following tables outline many of the benefits that would come to Michigan by achieving Wind Vision:

Consumer Benefits Cumulative through 2050 ENORMOUS Electricity Bill Savings $3.59 billion Added Savings through Lower $10.90 billion Natural Gas Prices* BENEFITS Other Economic Benefits By 2020 By 2030 Annual Property $11.62 million $17.09 million Tax Revenue

Annual Land $4.71 million $7.65 million TO BE Lease Payments *Achieving the Wind Vision scenario would reduce overall natural gas demand, resulting in lower prices and consumer savings beyond their electricity bills.

Wind Vision Scenario: By 2020 By 2030 REALIZED Environmental Benefits Achieving the wind vision in Michigan Water Use Avoided, 616.33 million 4.4 billion in Gallons

Michigan has an opportunity to lower electricity bills, create jobs, Carbon Pollution Avoided, -423,000* 9.6 million increase community investment, and enjoy cleaner air by expanding in Metric Tons the use of wind energy, according to a recently released DOE Carbon Pollution Avoided, in -89,000* 2.02 million Wind Vision report. The 2015 DOE Wind Vision report projects that Equivalent Cars Worth of Emissions nationwide, wind power can supply 10% of America’s electricity by 2020, 20% by 2030 and 35% by 2050, while delivering consumer The Wind Vision report estimates expanding wind power production will savings worth tens of billions of dollars a year. support a national total of 142,000 manufacturing jobs by 2030.

* According to the DOE Wind Vision Study Scenario, carbon emissions in Michigan are projected to increase by 2020 due to increased production from fossil fuel generators in the state. By 2030, increased wind production contributes to an overall decrease in carbon emissions.

The economic and environmental benefits have been calculated by AWEA using data from the U.S. Department of Energy’s Wind Vision report.

13 ENORMOUS BENEFITS TO BE REALIZED A New Era for Wind Power in the United States The U.S. produces more wind energy Although it is set to expire at the than any other country in the world. end of 2015 - Michigan’s renewable “Keeping the air and water resources clean Hard working Americans, innovation, portfolio standard requires the state’s and a successful federal tax policy investor-owned utilities, alternative in the Great Lakes region now, and for future have driven this success. With long- retail suppliers, electric cooperatives, generations, is what is at stake here. We can do term certainty and stable policy, the and municipal electric utilities to U.S. can retain our global leadership generate 10% of their retail electricity that and save consumers money by tapping into role, keep well-paying jobs and sales from renewable energy investment in Michigan and other resources by 2015. This policy more of Michigan’s low-cost wind energy resource. rural communities across the nation. helped jump-start the wind industry in the state. This report tells a story that’s being repeated Wind power is a good deal and in states all across the country – how both our Americans want more of it Wind power is also an attractive investment for companies that consume large amounts of power, environment and our local economies improve Recent polls show nine out of 10 which is a big reason why local voters - Republicans, Democrats, when we develop Made-in-America wind energy.” chambers of commerce throughout and Independents - believe growing the Midwest and Great Plains states wind power is a good idea. There’s support clean energy standards and JOHN KOSTYACK, EXECUTIVE DIRECTOR, WIND ENERGY FOUNDATION good reason for those opinions: wind the growth of wind energy. power is a cost-competitive, reliable power source that does not create air New wind opportunities on the or water pollution from generation. horizon for Michigan CONCLUSION American innovation and advances in technology continue to drive down Wind power is one of the most Extending federal clean energy tax predictable federal tax policy to continue the cost of wind power – 66% in just rapidly deployable, least expensive incentives good for Michigan, the U.S. to create jobs, invest capital, and deploy the last six years, according to the ways for states to comply with new projects. DOE. Taller towers, longer blades, the U.S. Environmental Protection improved gearboxes, and over 30 Agency’s Clean Power Plan rules. Michigan-made wind power is a true years of experience in siting wind The Clean Power Plan requires American success story. The wind To keep the expanded benefits for turbines to maximize their power states reduce carbon emissions from industry has helped revitalize rural Michigan on track, Congress must output are all responsible for the existing power plants to mitigate the economies in many counties in the state, extend the renewable energy Production recent cost declines. Those savings effects of climate change and help becoming a new drought-resistant cash Tax Credit - a federal tax incentive for are then passed onto consumers. clean our air. crop for farmers and other landowners. producing clean power - as well as the Investment Tax Credit. Added tax revenues have also benefitted Michigan benefits from a more Michigan’s experience with its schools, emergency services, and These two successful tax policies diverse electricity mix, thanks existing wind farms, along with its key infrastructure projects. Keeping untapped wind potential, make it well this success story going will result in combined have helped the wind industry to wind to rapidly improve wind power technology positioned to meet the Clean Power expanded economic benefits for Michigan Plan standards. workers, landowners, and all electricity and lower the cost of wind power. In states like Michigan, wind-friendly consumers. American wind power has attracted $100 policies that encourage utilities to billion in private investment to the U.S. invest in wind power have helped The wind industry also continues to economy since 2008 and stable tax policy create a more diverse gain momentum nationwide, delivering helps to provide certainty to the 73,000 and kept money in the pockets of tremendous economic and environmental jobs being provided by the U.S. wind consumers. benefits for all 50 states. But like all industry today. business, the wind industry needs stable,

15 CONCLUSION A New Era for Wind Power in the United States APPENDIX

Report, Wind Vision: A New Era for Wind Power in the United States, U.S. Department of Energy

Resources for the Wind Vision report, American Wind Energy Association (AWEA)

Fact sheet on wind power in Michigan, AWEA

Overview of wind energy in America, AWEA

WINDENERGYFOUNDATION.ORG AWEA.ORG

A New Era for Wind Power in the United States APPENDIX 18