Small Wind Energy Policy Making in the States: Lessons for a Shifting Energy Landscape
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Small Wind Energy Policy Making in the States: Lessons for a Shifting Energy Landscape Thesis Presented in Partial Fulfillment of the Requirements for the Degree Master of Science in the Graduate School of The Ohio State University By Joshua George Wiener, M.P.A. Graduate Program in Environment & Natural Resources The Ohio State University 2009 Thesis Committee: Tom Koontz, Advisor Jeremy Bruskotter Anand Desai Earl Epstein Andrew Keeler Copyright by Joshua Wiener 2009 Abstract A key component of climate change policy is the promotion of alternative energy sources. Among renewable energy technologies wind energy represents an important source of alternative energy with a minimal carbon footprint. While utility-scale wind farms have garnered much attention, a more widely dispersed energy resource is “small wind” – installations capable of generating small quantities of electricity in distributed (close to the end-user) rather than centralized form. With less visibility and smaller potential gain for large utilities, small wind technologies provide an interesting study in state environmental policy adoption. This research looks at the status of state small wind policies across the United States, and it tests the applicability of two policy adoption models to explain variability in state small wind policies: (1) internal determinants and (2) regional policy diffusion. Primary data were collected using an online survey instrument distributed to state energy officials across the country, and the results were analyzed using both statistical and qualitative techniques. Additionally, case studies were performed for three states – Oregon, Ohio, and Oklahoma – to provide greater contextual understanding to the survey instrument results and to illustrate the unique circumstances determining small wind policy adoption at the state level. The findings from the survey analysis suggested that the internal determinants model was better suited to explain state adoption of small wind policies than the regional ii policy diffusion model, although variables from both models were deemed important. In particular, six primary factors were found to be connected to the development of state small wind policies: a state’s historical commitment to environmental protection and policy innovations; citizen ideology; economic wealth and development; retail price of electricity; degree of legislative professionalism; and interstate competition related to leadership on environmental and energy issues. The case study analyses examined these variables in greater depth, exploring the level of impact of each variable in different circumstances as well as the manner in which these variables interact with each other to influence state small wind policy adoption. Furthermore, the case studies revealed that other variables might be important under specific conditions, highlighting the strength of fossil fuel energy industries in Oklahoma and the value of small wind’s perceived economic development potential in Ohio. The case studies also assessed the practical effect that different policies have on the small wind market, revealing that financial incentives combined with effective public outreach programs were perceived to have the greatest positive impact on small wind adoption in these three states. iii Acknowledgments This document could not have completed without the help of numerous people, and I would briefly like to highlight the key individuals who made this project possible. First, a sincere thank you goes out to my advisor, Tom Koontz, for the countless hours he spent working with me to develop my research topic and methodology, as well as all of the steps that were required to move forward from that point to this final document. His guidance was invaluable throughout this long process, and his kindness and support helped me navigate through the difficult points to reach this destination. Similarly, my committee members contributed important insights and suggestions throughout the research process, and I thank each of you for your dedication to my work and your assistance over the past year. In addition, I am thankful for the funding support I received from the Ohio Agricultural Research and Development Center (OARDC), School of Environment and Natural Resources, John Glenn School of Public Affairs, and GradRoots to further my education and research while attending The Ohio State University. This research also would not have succeeded without the willingness of countless individuals to give up their time to complete my survey and speak with me about my research. Due to promises of confidentiality I cannot mention any individuals by name, iv but I thank you all for taking time out of your busy schedules to assist a graduate student interested in developing a clean energy future. Dozens of individuals in Oregon, Ohio, and Oklahoma shared their thoughts, experiences, and insights about small wind energy with me, and this research effort was strengthened as a result of your contributions. Similarly, I also must thank Greg Payne from the Ohio Department of Development for spending time with me on the development of the survey instrument to ensure that the questions I asked would successfully address the topics I wished to cover. Finally, a big thank you goes out to my parents for their constant love, support, and encouragement throughout it all. They instilled in me at a young age a deep thirst for knowledge and a general inquisitiveness about how the world works, and they have never wavered in their support for my endeavors. No research project can ever be completed without the support of family, and I also thank Bob, Sally, Jenny, and Julie for creating a new family for me in Ohio that I could turn to at any time. Most importantly though, my biggest thank you is reserved for Lauren and Petey. I don’t think I could have done this without you, and your patience, understanding, and support throughout this process has been nothing short of incredible. Thank you for always believing in me and for never failing to bring a smile to my face when I needed it most. v Vita June 2004………………………… B.A. History, University of California Los Angeles 2004………… Field Organizer, Democratic National Committee Coordinated Campaign 2005…………………………………… New Accounts Representative, Los Padres Bank 2005-2006…………………………….. Personal Banking Specialist, Ohio Savings Bank 2007………………... ORCAS Summer Fellow, Oak Ridge Center for Advanced Studies 2007-2008…………………….Recipient of the OARDC Director’s Associateship Award 2008…………………... Analyst Intern, United States Government Accountability Office 2008-2009……………... Public Affairs Intern, Franklin County Board of Commissioners June 2009…………………………………………….. M.P.A., The Ohio State University June 2009……………... Recipient of the Outstanding Policy/Management Paper Award, The John Glenn School of Public Affairs, The Ohio State University June 2009…………….. Recipient of the Mary E. Katchmar Outstanding Service Award, The John Glenn School of Public Affairs, The Ohio State University Field of Study Major Field: Environment & Natural Resources Specialization: Environmental Social Sciences vi Table of Contents Abstract…………………………………………………………………………………... ii Acknowledgments………………………………………………………………………. iv Vita………………………………………………………………………………………. vi List of Tables…………………………………………………………………………..... ix List of Figures……………………………………………………………………………. x Chapter 1: Introduction…………..……………………………………………………… 1 Chapter 2: Survey Instrument………….………………………………………………. 12 Chapter 3: Case Studies…………...…………………………………………………… 63 Chapter 4: Case Study Policy Tool Results…….…………………………………….. 116 Chapter 5: Conclusion…..…………………………………………………………….. 136 References……………………………………………………………………………... 146 Appendix A: State Small Wind Policy Survey Instrument…………………………… 153 vii Appendix B: Complete Correlation Matrix…………………………………………… 176 Appendix C: Sample Oregon Interview Protocol…………………………………….. 178 Appendix D: Sample Ohio Interview Protocol……………………………………….. 181 Appendix E: Sample Oklahoma Interview Protocol………………………………….. 184 viii List of Tables Table 1. Policy Tools Framework……………………………………………………… 31 Table 2. Policy Tool Usage in Small Wind States……………………………………... 39 Table 3. State Usage of Tools From the Policy Instrument Groupings………………... 40 Table 4. Pearson Product-Moment Correlation Analysis Results……………………... 44 Table 5. Influential Factors Related to Policymakers’ Support for Small Wind………. 47 Table 6. Small Wind Policy Adoption Variables………………………………………. 60 Table 7. Current Small Wind Policies in the Case Study States……………………….. 92 Table 8. Impact of Policy Adoption Variables by State……………………………… 108 Table 9. Policy Tool Impact…………………………………………………………... 129 Table 10. Complete Correlation Matrix………………………………………………. 176 ix List of Figures Figure 1. Small Wind Policy Map……………………………………………………... 37 x Chapter 1: Introduction Growing concerns about global climate change, the safety and security of America’s energy supply, and the economic hardship caused by high gasoline prices have brought energy-related issues to the forefront of contemporary public discourse. Confronting these complex challenges will require diverse multi-faceted solutions within the public and private sectors, along with a willingness to move away from the current “business as usual” practices that helped to create the existing situation. Although the political will and financial means for confronting these issues may be diminished in the face of the current national economic crisis, economic circumstances do not lessen the need