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Indianapolis grapples with low compliance on energy benchmarking requirement for large buildings

A street scene in downtown Indianapolis with a tall obelisk of the Soldier's and Sailor's Monument surrounded by high-rise office buildings on either side.

Emissions from buildings make up about two-thirds of the greenhouse gas footprint of Indianapolis. So when the city committed to slash emissions, in its 2019 climate action plan and then as part of the Bloomberg American Cities Climate Challenge in 2020, leaders knew where they had to start.

A 2021 ordinance requires all buildings over 50,000 square feet and publicly-owned buildings over 25,000 square feet to do energy benchmarking and report results to the city, to be made publicly available by 2026. 

The deadline to comply was July 1, 2024. But at year’s end, only about 20% of the 1,500 buildings covered had complied — even though the process can be done in a matter of hours using EPA’s ENERGYSTAR Portfolio manager software. The city also hosted workshops to help walk building managers through the process.

Now the city’s challenge is to boost benchmarking compliance. The penalties for failing to comply are low: fines of $100 the first year and $250 yearly after that. Chicago’s 2013 benchmarking ordinance, by comparison, includes fines of $100 for the first day of a violation and up to $25 each day thereafter, with a maximum fine of $9,200 per year — and the city has a much higher compliance rate.

Lindsay Trameri, community engagement manager for the Indianapolis Office of Sustainability, said the office is continuing outreach, including sending postcards to all relevant building managers and owners. 

“We’re not assessing fines yet, but we’re making sure they’re aware this isn’t a city program that’s going away, it is indeed local law,” Trameri said. “And there are benefits to be gleaned from participating. It might cost hundreds of dollars not to participate, but you could save thousands if you participate and take it seriously.”

Trameri said 27 publicly-owned buildings in the consolidated city and county government must be benchmarked, and the city is planning to use about $800,000 worth of federal Department of Energy funding to hire an energy manager “who will be solely focused on looking at city-owned buildings and how to make them more energy efficient.” 

In Indiana, reducing buildings’ electricity use is particularly urgent since the state got about 45% of its power from coal in 2023. The benchmarking mandate doesn’t require buildings to take any action based on their energy results, but benchmarking often motivates building owners and municipalities to invest in savings, experts say. 

Cities participating in the Bloomberg program saw 3% to 8% energy reductions and millions in savings, with nearly 400 million square feet now covered by benchmarking policies and over 37,000 energy audits completed, according to Kelly Shultz, who leads Bloomberg Philanthropies” sustainable cities initiative. 

Success stories

Though overall compliance is low, some major public and private entities have completed benchmarking in Indianapolis, including the airport, convention center, the Indianapolis Museum of Art, Target and JC Penney. 

Phil Day, facilities director for the museum, noted that it’s crucial for museums to keep consistent levels of humidity and temperature. That means high energy use, and also vulnerability to blackouts or energy price spikes. Benchmarking has helped him develop plans for reducing natural gas and electricity use with smaller boilers and heat pumps distributed throughout the facilities, a possible geothermal chilling system, and better insulation. These innovations should save money and make the museum more resilient to energy disruptions.

“Museums aren’t typically known as an energy efficient facility, but it is always high on my priority list in everything we program or replace,” Day said.

The firm Cenergistic has done benchmarking since 2017 for Indianapolis Public Schools, and identified more than $1 million in wasteful energy costs that could be cut across 71 schools. Under Cenergistic’s contract, it is paid half of the energy savings it secures. Seventeen school buildings have obtained EPA Energy Star status based on their energy efficiency improvements, Cenergistic CEO Dennis Harris said. 

“Benchmarking provided a clear starting point by identifying high-energy-consuming facilities and systems,” Harris said. “Cenergistic energy specialists track energy consumption at all campuses with the company’s software platform, identifying waste and driving conservation. By consistently reviewing this data, Cenergistic continues to work with IPS to make data-driven decisions, set measurable goals, and continually refine its strategy for maximum impact.” 

Trameri said the schools’ success is “a great message to point to. If they can do it, we can do it. Of course, we want those millions to go back into classrooms and teachers and students versus out the door for utility costs.”

Learning by example

Trameri said in developing its benchmarking program and ordinance, Indianapolis has relied on guidance and lessons from other cities including Columbus, Ohio and Chicago, both fellow participants in the Bloomberg challenge. 

In Chicago, about 85% of the 3,700 buildings covered by the ordinance are in compliance, said Amy Jewel, vice president of programs at Elevate, the organization that oversees Chicago’s program. She said nine out of 10 buildings complied even right after the ordinance took effect, thanks to years of organizing by city leaders and NGOs like the Natural Resources Defense Council.

“A large number of building owners recognized this was coming. They engaged in the process, and saw their fingerprints within the ordinance,” said Lindy Wordlaw, director of climate and environmental justice initiatives for the city of Chicago. 

Chicago passed an additional ordinance creating an energy rating program, where buildings receive a score of 0 to 4 based on their energy benchmarking results. An 11-by-17-inch placard with the score and explanation must be publicly posted, “similar to a food safety rating for a restaurant,” Wordlaw said.

In 2021, Chicago reported that median energy use per square foot had dropped by 7% over the past three years, and greenhouse gas emissions had dropped 37% since 2016 in buildings subject to the ordinance. City public housing and buildings owned by the Archdiocese were among those to do early benchmarking and investments.

Along with Philadelphia, New York and Washington D.C., Chicago was among the nation’s first major cities to institute benchmarking. Jewel said they hope to keep sharing lessons learned.

For example, “it’s actually pretty hard to come up with the covered buildings list,” Jewel noted, since there is no central list of all buildings in a city but rather various records “all used for slightly different purposes — the property tax database, different sources tracking violations. It took a bit of time to get that list together, and it takes time to maintain it as buildings are constructed or demolished.”

In Indianapolis, Trameri said they are hopeful more buildings will get with the program as awareness grows about the requirement.

“There has always been evidence that you can’t manage what you don’t measure,” said Trameri. “It’s a market-based strategy. Truly once a facilities owner or manager is able to look at their energy usage over a month, 12 months, or multiple years and make evidence-based decisions based on that data, it will affect your bottom line, and those savings you can reinvest into whatever your organization’s mission is.”

Correction: An earlier version of this story misattributed performance information about Bloomberg Philanthropies’ sustainable cities initiative.

Indianapolis grapples with low compliance on energy benchmarking requirement for large buildings is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

In Michigan and Wisconsin, cities are finding rooftops alone may not achieve solar energy goals

Man in yellow jacket stands on snow-covered roof next to solar panel and American flag.
Reading Time: 6 minutes

A new contract between Kalamazoo, Michigan, and utility Consumers Energy signals a change in direction for the city’s clean energy strategy as it seeks to become carbon neutral by 2040. 

Solar was seen as a pillar of the city’s plans when it declared a climate emergency in 2019 and set a goal of zeroing out carbon emissions by 2040. After spending years exploring its options, though, the Michigan city is tempering a vision for rooftop solar in favor of large, more distant solar projects built and owned by the utility. It’s not alone either, with Grand Rapids, Milwaukee, Muskegon and other cities taking a similar approach.

“Folks want to see solar panels on parking lots and buildings, but there’s no way as a city we can accomplish our net-zero buildings just putting solar panels on a roof,” said Justin Gish, Kalamazoo’s sustainability planner. “Working with the utility seemed to make the most sense.” 

Initially there was skepticism, Gish said — “environmentalists tend to not trust utilities and large corporate entities” — but the math just didn’t work out for going it alone with rooftop solar.

The city’s largest power user, the wastewater treatment pumping station, has a roof of only 225 square feet. Kalamazoo’s largest city-owned roof, at the public service station, is 26,000 square feet. Spending an estimated $750,000 to cover that with solar would only provide 14% of the power the city uses annually — a financial “non-starter,” he said.

So the city decided to partner with Consumers Energy, joining a solar subscription program wherein Kalamazoo will tell Consumers how much solar energy it wants, starting in 2028, and the utility will use funds from its subscription fee to construct new solar farms, like a 250-megawatt project Consumers is building in Muskegon

Under the 20-year contract, Kalamazoo will pay a set rate of 15.8 cents per kilowatt-hour (kWh) — 6.4 cents more than what it currently pays — for 43 million kWh of solar power per year. If electricity market rates rise, the city will save money, and Kalamazoo receives Renewable Energy Credits (RECs) to help meet its energy goals. 

The subscription is expected to eliminate about 80% of Kalamazoo’s emissions from electricity, Gish said. The electricity used to power streetlights and traffic signals couldn’t be covered since it is not metered. As the city acquires more electric vehicles — it currently has two — electricity demand may increase, but city leaders hope to offset any increases by improving energy efficiency of city buildings.  

Consumers Energy spokesperson Matt Johnson said the company relies “in part” on funds from customers specifically to build solar and considers it a better deal for cities than building it themselves, “which would be more costly for them, and they have to do their own maintenance.”  

“We can do it in a more cost-effective way, we maintain it, they’re helping us fund it and do it in the right way, and those benefits get passed on to arguably everybody,” Johnson said. 

Grand Rapids, Michigan, joined the subscription program at the same time as Kalamazoo. Corporate customers including 7-Eleven, Walmart and General Motors are part of the same Consumers Energy solar subscription program, as is the state of Michigan.

Costs and benefits

“There’s a growing movement of cities trying to figure out solar — ‘Yes we want to do this, it could save us money over time, but the cost is prohibitive,’” said John Farrell, co-director of the Institute for Local Self-Reliance. 

Until the Inflation Reduction Act, cities couldn’t directly access federal tax credits. The direct-pay incentives under the IRA have simplified financing, Farrell said, but cities still face other financial and logistical barriers, such as whether they have sufficient rooftop space.  

Advocates acknowledge deals with utilities may be the most practical way for budget-strapped cities to move the needle on clean energy, but they emphasize that cities should also strive to develop their own solar and question whether utilities should charge more for clean power that is increasingly a cheaper option than fossil fuels.

“Our position is rooftop and distributed generation is best — it’s best for the customers, in this case the cities; it’s best for the grid because you’re putting those resources directly on the grid where it’s needed most; and it’s best for the planet because it can deploy a lot faster,” said John Delurey, Midwest deputy director of the advocacy group Vote Solar. “I believe customers in general and perhaps cities in particular should exhaust all resources and opportunities for distributed generation before they start to explore utility-scale resources. It’s the lowest hanging fruit and very likely to provide the most bang for their buck.”

Utility-scale solar is more cost-effective per kilowatt, but Delurey notes that when a public building is large enough for solar, “you are putting that generation directly on load, you’re consuming onsite. Anything that is concurrent consumption or paired with a battery, you are getting the full retail value of that energy. That is a feature you can’t really beat no matter how good the contract is with some utility-scale projects that are farther away.”

Delurey also noted that Michigan law mandates all energy be from clean sources by 2040; and 50% by 2030. That means Consumers needs to be building or buying renewable power, whether or not customers pay extra for it. 

“So there are diminishing returns (to a subscription deal) at that point,” Delurey said. “You better be getting a price benefit because the power on their grid would be clean anyways.” 

“Some folks are asking ‘Why do anything now? Just wait until Consumers cleans up the grid,’” Gish acknowledged. “But our purchase shows we have skin in the game.” 

A complement to rooftop

In 2009, Milwaukee adopted a goal of powering 25% of city operations — excluding waterworks — with solar by 2025. The city’s Climate and Equity Plan adopted in 2023 also enshrined that goal. 

For a decade, Milwaukee has been battling We Energies over the city’s plan to install rooftop solar on City Hall and other buildings through a third-party owner, Eagle Point Solar. The city sought the arrangement — common in many states — to tap federal tax incentives that a nonprofit public entity couldn’t reap. But We Energies argued that third party ownership would mean Eagle Point would be acting as a utility and infringing on We Energies’ territory. A lawsuit over Milwaukee’s plans with Eagle Point is still pending.

In 2018 in Milwaukee, We Energies launched a pilot solar program known by critics as “rent a roof,” in which the utility leased rooftop space for its own solar arrays. Advocates and Milwaukee officials opposed the program, arguing that it encouraged the utility to suppress the private market or publicly owned solar. In 2023, the state Public Service Commission denied the utility’s request to expand the program.

Wisconsin’s Citizens Utility Board opposed the rent-a-roof arrangement since it passed costs it viewed as unfair on to ratepayers. But Wisconsin CUB Executive Director Tom Content said the city’s current partnership with We Energies is different since it is just the city, not ratepayers, footing the cost for solar that helps the city meet its goals.

Solar panels on a roof in a city
Solar panels atop Milwaukee’s Central Library. (City of Milwaukee)

Milwaukee is paying about $84,000 extra per year for We Energies to build solar farms on a city landfill near the airport and outside the city limits in the town of Caledonia. The deal includes a requirement that We Energies hire underemployed or unemployed Milwaukee residents.

The Caledonia project is nearly complete and will provide over 11 million kWh of energy annually, “enough to make 57 municipal police stations, fire stations and health clinics 100% renewable electricity,” said Milwaukee Environmental Collaboration Office director Erick Shambarger. 

The landfill project is slated to break ground in 2025. The two arrays will total 11 MW and provide enough power for 83 city buildings, including City Hall – where Milwaukee had hoped to do the rooftop array with Eagle Point. 

Meanwhile, Milwaukee is building its own rooftop solar on the Martin Luther King Jr. library and later other public buildings, and Shambarger said the city will apply for direct pay tax credits made possible by the Inflation Reduction Act — basically eliminating the need for a third-party agreement.

“Utility-scale is the complement to rooftop,” said Shambarger. “They own it and maintain it, we get the RECs. It worked out pretty well. If you think about it from a big picture standpoint, to now have the utility offer a big customer like the city an option to source their power from renewable energy — that didn’t exist five years ago. If you were a big customer in Wisconsin five years ago, you really had no option except for buying RECs from who knows where. We worked hard with them to make sure we could see our renewable energy being built.”

We Energies already owns a smaller 2.25 MW solar farm on the same landfill, under a similar arrangement. Building solar on the landfill is less efficient than other types of land since special mounting is needed to avoid puncturing the landfill’s clay cap, and the panels can’t turn to follow the sun. But Shambarger said the sacrifice is worth it to have solar within the city limits, on land useful for little else.

“We do think it’s important to have some of this where people can see it and understand it,” he said. “We also have the workforce requirements, it’s nice to have it close to home for our local workers.”

Madison is also pursuing a mix of city-owned distributed solar and utility-scale partnerships. 

On Earth Day 2024, Madison announced it has installed 2 MW of solar on 38 city rooftops. But a utility-scale solar partnership with utility MGE is also crucial to the goal of 100% clean energy for city operations by 2030. Through MGE’s Renewable Energy Rider program, Madison helped pay for the 8 MW Hermsdorf Solar Fields on a city landfill, with 5 MW devoted to city operations and 3 MW devoted to the school district. The 53-acre project went online in 2022.

Farrell said such “all of the above” approaches are ideal.

“The lesson we’ve seen generally is the more any entity can directly own the solar project, the more financial benefit you’ll get,” he said. “Ownership comes with privileges, and with risks. 

“Energy is in addition to a lot of other challenging issues that cities have to work on. The gold standard is solar on a couple public buildings with battery storage, so these are resiliency places if the grid goes down.”

A version of this article was first published by Energy News Network and is republished here under a Creative Commons license.

In Michigan and Wisconsin, cities are finding rooftops alone may not achieve solar energy goals is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Milwaukee plans to build net-zero modular homes for lower-income residents — but it’s not easy

A wall panel is lowered into a construction site with a crane, as a worker in a yellow vest guides it into place.

Living in a net-zero home is often a luxury for those who can afford solar panels, state-of-the-art HVAC and other innovations and renovations.

But lower-income people are those who could benefit most from energy cost savings, and those who suffer most from extreme climate. Milwaukee is trying to address this disconnect by building net-zero homes for low-income buyers in partnership with Habitat for Humanity, a marquee project of the city’s 2023 Climate and Equity Plan.

In September, the U.S. Department of Energy announced a $3.4 million grant that will go toward Milwaukee’s construction of 35 homes on vacant lots in disadvantaged neighborhoods and the opening of a factory to make wall panels for net-zero manufactured homes.

City leaders have found the undertaking more challenging than expected, especially on the factory front. But they hope overcoming roadblocks will help create a new local and regional market for energy-efficient, affordable prefabricated homes, while also training a new generation of architects in the sector through partnership with the University of Wisconsin-Milwaukee School of Architecture and Urban Planning.

“It remains an ambitious project,” said Milwaukee environmental sustainability director Erick Shambarger. “We’re trying to support equity, climate, new technology, manufacturing. It takes some time, but we’re excited about it and looking forward to making it a success.”

Panelized, prefabricated homes can be built relatively cheaply, but making them highly energy efficient is a different story. A handful of small companies nationwide make the wall panels used in such construction to highly energy-efficient standards, but transporting the panels is expensive and creates greenhouse gas emissions. 

The city sought a local manufacturer, but an initial request for proposals yielded no viable candidates. Now the city and UWM professors are working with the Rocky Mountain Institute to convince a qualified company to open a site in Milwaukee to make energy-efficient panelized home components at commercial scale, for both the city and private customers.

“It’s such a great fit for Milwaukee,” said Lucas Toffoli, a principal in RMI’s carbon-free buildings program. “It’s a city that has a very strong blue-collar tradition, so the idea of bringing back some manufacturing, and leveling up the home-building capacity of the city feels very congruent with the spirit of Milwaukee.”

And panelized homes could be a cornerstone of affordable, energy-efficient housing nationwide if the sector was better organized and incentivized, RMI argues — a goal that Milwaukee could help further. 

“Local action always drives a message in a way that federal action doesn’t,” Toffoli said. “It will be even more important under the incoming presidential administration and Congress. Having this project getting started at the local level in an important Midwestern city is a way to help ensure that progress continues at some level, even if it’s less of a priority at the federal level.” 

Panel problems

Habitat for Humanity builds its own panels in its Milwaukee warehouse, and is working on an energy-efficient panelized design that it hope will yield the first net-zero affordable homes in 2025. Milwaukee has yet to select a developer for the DOE-funded program, but Milwaukee Habitat was a partner in the DOE grant and CEO Brian Sonderman said the organization is hopeful it will be chosen during an RFP process.

Single-family homes are typically “stick built” from the ground up, with 2×4 or similar boards forming a skeleton and then, one by one, walls. Panelized homes involve walls transported intact to the site. 

Milwaukee Habitat for Humanity often uses a hybrid method wherein walls are “stick built” laying on their side in the Habitat warehouse, and then brought to the site where volunteers help assemble the new house.

There are various other methods of making panels that don’t involve lumber, UWM Associate Professor Alexander Timmer explained, and making these models highly energy efficient is still an emerging and decentralized field.

“It’s the chicken-or-the-egg problem in some sense,” Timmer said, since component manufacturers don’t know if there’s a market for energy-efficient panelized homes, and developers don’t build the homes because few component suppliers exist.

Wall panels can involve two sheets of plywood with insulation in between, or a steel interior surrounded by rigid insulation, among other models.

“With 2x4s, any small crew can build a home,” said Timmer. “With panelized, you need a factory, specialized tools, specialized knowledge. The hope is we are graduating architects into the market who know these technologies and techniques, and can design them to high energy efficiency standards. The city needs architects and builders who want to do these things and feel comfortable doing them.”

Toffoli touted the benefits of net-zero homes beyond the carbon emissions and utility bill savings.

“There’s less draftiness, greater comfort throughout the whole home,” said Toffoli. “In addition to making the heater run less to warm the air, there’s a big comfort benefit and acoustic benefit,” with little noise or pollutants filtering into the well-sealed home.

“In the middle of a severe Wisconsin winter storm, [if] power goes out for everyone, you have a home that can basically ride through harsh conditions passively much better,” Toffoli added. 

Toffoli said examples in Pennsylvania and Massachusetts show panelized, highly energy-efficient homes can be built at costs not much greater than standard market panelized homes. A different design, including thinner studs and more insulation, means less heat or cold is transported from the outside in. Insulation and highly efficient windows cost more than market rate, but smaller appliances can be used because of the efficiency, helping to mitigate the cost increase. 

He said mass production of net-zero panelized homes is much more efficient and cost-effective than stick-built energy-efficient homes. 

“You don’t need to, every time, find a contractor who understands the proper sequence of control layers for a very high-performance wall,” Toffoli said. “It’s been done in part in a factory where they’re plugging and chugging on a design that’s been validated and repeated.”

The DOE grant includes $1 million for Milwaukee to incentivize construction of the panel factory, $40,000 each toward 25 homes, plus funds for administration and other costs. Shambarger said $40,000 per home will cover the construction cost difference between an affordable home that merely complies with building codes, and one that is net-zero – meeting federal standards with a highly efficient envelope, an electric heat pump and solar panels.

Shambarger noted that the city funding and business will not be enough to motivate a company to build a new factory in Milwaukee.  

“Any company is going to have to have a customer base” beyond the city orders, Shambarger said. “We’ll have to make sure other housing developers like the product that companies have, that it’s cost effective. One of the things we learned the first time around is most of the developers really didn’t understand how to do net-zero energy. We want to make sure the product we select fits within Milwaukee neighborhoods, will work in our climate, has buy-in from the community.”

Local jobs would be created by the factory, which is slated to be in Century City, the neighborhood with the most vacant manufacturing space.

“Overall with the climate and equity plan, we are trying to create good-paying jobs that people want,” Shambarger said. “That often means the trades. One of the things attractive about building housing components in a factory is it offers steady year-round employment, rather than having to go on unemployment for the winter,” as many building tradespeople do.

Creating Habitat

Sonderman said that in the past, Milwaukee Habitat has put solar on some homes, but little else specifically to lower energy costs.

“Clearly if there was a really substantial market for developers who were interested and willing to do this work, the reality is Habitat wouldn’t be the first call,” he said. “It’s something new. One of the things we’re looking forward to is sharing with our Habitat network in the state and other developers and builders, so we build some confidence this can be done efficiently and cost-effectively.”

Net-zero homes are not only a way to fight climate change, but an environmental and economic justice issue in predominantly Black neighborhoods scarred by redlining and disinvestment, where the majority of residents are renters, Sonderman added.

“Even for the individuals who don’t live in that home but live in the neighborhood, it breathes hope, it says that our neighborhood is being invested in,” Sonderman said. “That matters deeply for the residents of Lindsay Heights, Harambee, Midtown and elsewhere. To take a project like this and see it come to fruition has tremendous ripple effect in a positive way.”

Several other Habitat chapters nationwide are building net-zero homes, including in Colorado, Illinois and Oregon.

Milwaukee Habitat is planning to build 34 homes in 2025 and up to 60 homes annually by 2028. Sonderman said they will make as many as possible net-zero.

“We’re not in a capacity to be the full-scale factory [Shambarger] was envisioning,” he said. “But we believe we’ll be able to supply the walls we need to build dozens and dozens of net-zero homes in the future.”

Milwaukee plans to build net-zero modular homes for lower-income residents — but it’s not easy is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

In Michigan and Wisconsin, cities are finding rooftops alone may not achieve solar energy goals 

An overhead view of downtown Kalamazoo, Michigan, with a mix of modern and historic commercial buildings and parking lots. Cars are stopped on a three-lane one-way street waiting for a freight train to pass.

A new contract between Kalamazoo, Michigan, and utility Consumers Energy signals a change in direction for the city’s clean energy strategy as it seeks to become carbon neutral by 2040. 

Solar was seen as a pillar of the city’s plans when it declared a climate emergency in 2019 and set a goal of zeroing out carbon emissions by 2040. After spending years exploring its options, though, the Michigan city is tempering a vision for rooftop solar in favor of large, more distant solar projects built and owned by the utility. It’s not alone either, with Grand Rapids, Milwaukee, Muskegon and other cities taking a similar approach.

“Folks want to see solar panels on parking lots and buildings, but there’s no way as a city we can accomplish our net-zero buildings just putting solar panels on a roof,” said Justin Gish, Kalamazoo’s sustainability planner. “Working with the utility seemed to make the most sense.” 

Initially there was skepticism, Gish said — “environmentalists tend to not trust utilities and large corporate entities” — but the math just didn’t work out for going it alone with rooftop solar.

The city’s largest power user, the wastewater treatment station, has a pumping house with a roof of only 225 square feet. Kalamazoo’s largest city-owned roof, at the public service station, is 26,000 square feet. Spending an estimated $750,000 to cover that with solar would only provide 14% of the power that building uses annually — a financial “non-starter,” he said.

So the city decided to partner with Consumers Energy, joining a solar subscription program wherein Kalamazoo will tell Consumers how much solar energy it wants, starting in 2028, and the utility will use funds from its subscription fee to construct new solar farms, like a 250 MW project Consumers is building in Muskegon

Under the 20-year contract, Kalamazoo will pay a set rate of 15.8 cents per kWh — 6.4 cents more than what it currently pays — for 43 million kWh of solar power per year. If electricity market rates rise, the city will save money, and Kalamazoo receives Renewable Energy Credits (RECs) to help meet its energy goals. 

The subscription is expected to eliminate about 80% of Kalamazoo’s emissions from electricity, Gish said. The electricity used to power streetlights and traffic signals couldn’t be covered since it is not metered. As the city acquires more electric vehicles — it currently has two — electricity demand may increase, but city leaders hope to offset any increases by improving energy efficiency of city buildings.  

Consumers Energy spokesperson Matt Johnson said the company relies “in part” on funds from customers specifically to build solar, and considers it a better deal for cities than building it themselves, “which would be more costly for them, and they have to do their own maintenance.”  

“We can do it in a more cost-effective way, we maintain it, they’re helping us fund it and do it in the right way, and those benefits get passed on to arguably everybody,” Johnson said. 

Grand Rapids, Michigan, joined the subscription program at the same time as Kalamazoo. Corporate customers including 7-Eleven, Walmart and General Motors are part of the same Consumers Energy solar subscription program, as is the state of Michigan.

Costs and benefits

“There’s a growing movement of cities trying to figure out solar — ‘Yes we want to do this, it could save us money over time, but the cost is prohibitive,’” said John Farrell, co-director of the Institute for Local Self-Reliance. 

Until the Inflation Reduction Act, cities couldn’t directly access federal tax credits. The direct-pay incentives under the IRA have simplified financing, Farrell said, but cities still face other financial and logistical barriers, such as whether they have sufficient rooftop space.  

Advocates acknowledge deals with utilities may be the most practical way for budget-strapped cities to move the needle on clean energy, but they emphasize that cities should also strive to develop their own solar, and question whether utilities should charge more for clean power that is increasingly a cheaper option than fossil fuels.

“Our position is rooftop and distributed generation is best — it’s best for the customers, in this case the cities; it’s best for the grid, because you’re putting those resources directly on the grid where it’s needed most; and it’s best for the planet because it can deploy a lot faster,” said John Delurey, Midwest deputy director of the advocacy group Vote Solar. “I believe customers in general and perhaps cities in particular should exhaust all resources and opportunities for distributed generation before they start to explore utility-scale resources. It’s the lowest hanging fruit and very likely to provide the most bang for their buck.”

Utility-scale solar is more cost-effective per kilowatt, but Delurey notes that when a public building is large enough for solar, “you are putting that generation directly on load, you’re consuming onsite. Anything that is concurrent consumption or paired with a battery, you are getting the full retail value of that energy. That is a feature you can’t really beat no matter how good the contract is with some utility-scale projects that are farther away.”

Delurey also noted that Michigan law mandates all energy be from clean sources by 2040; and 50% by 2030. That means Consumers needs to be building or buying renewable power, whether or not customers pay extra for it. 

“So there are diminishing returns [to a subscription deal] at that point,” Delurey said. “You better be getting a price benefit, because the power on their grid would be clean anyways.” 

“Some folks are asking ‘Why do anything now? Just wait until Consumers cleans up the grid,’” Gish acknowledged. “But our purchase shows we have skin in the game.” 

A complement to rooftop

In 2009, Milwaukee adopted a goal of powering 25% of city operations — excluding waterworks — with solar by 2025. The city’s Climate and Equity Plan adopted in 2023 also enshrined that goal. 

For a decade, Milwaukee has been battling We Energies over the city’s plan to install rooftop solar on City Hall and other buildings through a third-party owner, Eagle Point Solar. The city sought the arrangement — common in many states — to tap federal tax incentives that a nonprofit public entity couldn’t reap. But We Energies argued that third party ownership would mean Eagle Point would be acting as a utility and infringing on We Energies’ territory. A lawsuit over Milwaukee’s plans with Eagle Point is still pending.

In 2018, We Energies launched a pilot solar program in Milwaukee known by critics as “rent a roof,” in which the utility leased rooftop space for its own solar arrays. Advocates and Milwaukee officials opposed the program, arguing that it encouraged the utility to suppress the private market or publicly-owned solar. In 2023, the state Public Service Commission denied the utility’s request to expand the program.

Wisconsin Citizens Utility Board opposed the rent-a-roof arrangement since it passed costs they viewed as unfair on to ratepayers. But Wisconsin CUB executive director Tom Content said the city’s current partnership with We Energies is different, since it is just the city, not ratepayers, footing the cost for solar that helps the city meet its goals.

Solar panels on rooftop
Solar panels atop Milwaukee’s Central Library. Credit: City of Milwaukee

Milwaukee is paying about $84,000 extra per year for We Energies to build solar farms on a city landfill near the airport and outside the city limits in the town of Caledonia. The deal includes a requirement that We Energies hire underemployed or unemployed Milwaukee residents.

The Caledonia project is nearly complete, and will provide over 11 million kWh of energy annually, “enough to make 57 municipal police stations, fire stations, and health clinics 100% renewable electricity,” said Milwaukee Environmental Collaboration Office director Erick Shambarger. 

The landfill project is slated to break ground in 2025. The two arrays will total 11 MW and provide enough power for 83 city buildings, including City Hall – where Milwaukee had hoped to do the rooftop array with Eagle Point. 

Meanwhile Milwaukee is building its own rooftop solar on the Martin Luther King Jr. library and later other public buildings, and Shambarger said they will apply for direct pay tax credits made possible by the Inflation Reduction Act — basically eliminating the need for a third-party agreement.

“Utility-scale is the complement to rooftop,” said Shambarger. “They own it and maintain it, we get the RECs. It worked out pretty well. If you think about it from a big picture standpoint, to now have the utility offer a big customer like the city an option to source their power from renewable energy — that didn’t exist five years ago. If you were a big customer in Wisconsin five years ago, you really had no option except for buying RECs from who knows where. We worked hard with them to make sure we could see our renewable energy being built.”

We Energies already owns a smaller 2.25 MW solar farm on the same landfill, under a similar arrangement. Building solar on the landfill is less efficient than other types of land, since special mounting is needed to avoid puncturing the landfill’s clay cap, and the panels can’t turn to follow the sun. But Shambarger said the sacrifice is worth it to have solar within the city limits, on land useful for little else.

“We do think it’s important to have some of this where people can see it and understand it,” he said. “We also have the workforce requirements, it’s nice to have it close to home for our local workers.”

Madison is also pursuing a mix of city-owned distributed solar and utility-scale partnerships. 

On Earth Day 2024, Madison announced it has installed 2 MW of solar on 38 city rooftops. But a utility-scale solar partnership with utility MGE is also crucial to the goal of 100% clean energy for city operations by 2030. Through MGE’s Renewable Energy Rider program, Madison helped pay for the 8 MW Hermsdorf Solar Fields on a city landfill, with 5 MW devoted to city operations and 3 MW devoted to the school district. The 53-acre project went online in 2022.

Farrell said such “all of the above” approaches are ideal.

“The lesson we’ve seen generally is the more any entity can directly own the solar project, the more financial benefit you’ll get,” he said. “Ownership comes with privileges, and with risks. 

“Energy is in addition to a lot of other challenging issues that cities have to work on. The gold standard is solar on a couple public buildings with battery storage, so these are resiliency places if the grid goes down.”

Correction: Covering Kalamazoo’s public service station roof with solar panels would provide an estimated 14% of power used by that building. An earlier version of this story mischaracterized the number.

In Michigan and Wisconsin, cities are finding rooftops alone may not achieve solar energy goals  is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Advocates make economic case for green steel production at Dearborn, Michigan plant

A worker holds a piece of shiny metal shaped like a briquette.

Dearborn, Michigan, was at the heart of auto industry innovation during the days of the Model T Ford. 

Now clean energy and environmental justice advocates are proposing that the city play a lead role in greening the auto industry, through a transformation of the Dearborn Works steel mill to “green steel” — a steelmaking process powered by hydrogen and renewable energy with drastically lower emissions than a traditional blast furnace. 

The blast furnace at Dearborn Works is due for relining in 2027, at an estimated cost of $470 million. Advocates argue that instead of prolonging the blast furnace’s life, its owner, Cleveland Cliffs, should invest another $2 billion dollars and convert the mill to Direct Reduced Iron (DRI) technology powered by green hydrogen (hydrogen produced with renewable energy).

An October report by Dr. Elizabeth Boatman of the firm 5 Lakes Energy examines the economics and logistics of such a conversion, and argues that demand for cleaner steel is likely to grow as auto companies and other global industries seek to lower their greenhouse gas footprints. Starting in 2026, steel importers to the European Union will need to make payments to offset emissions associated with steel production.

Worldwide, the auto industry is the second largest consumer of steel after construction, and “being able to pass on the price of a ‘green steel premium’ to its end consumers, the automotive industry is uniquely positioned to create demand for green steel without having to rely on public subsidies,” the European Union think tank CEPS said in a recent publication.

“This is a great chance for the state to step in now and ensure this conversion happens, instead of waiting another 20 years,” said Boatman. “All the economic indicators suggest clean steel is the steel product of the future, and the best way to future-proof jobs especially in the steel sector and especially for unions.” 

Cutting pollution, creating jobs 

Cleveland Cliffs is planning to convert its Middletown, Ohio, steel mill to DRI, tapping a $500 million federal grant for industrial decarbonization under the Bipartisan Infrastructure Law and Inflation Reduction Act. 

A DRI furnace does not need to use coke or heat iron ore to 3,000 degrees Fahrenheit to produce pure “pig iron”; the same result is achieved with a different chemical process at much lower temperatures. DRI furnaces can be powered by natural gas or clean hydrogen. Initially, Cleveland Cliffs says, its Middletown mill will run on natural gas, releasing about half the carbon emissions of its current blast furnace. Eventually, the company announced, it could switch to hydrogen. 

Along with slashing greenhouse gas emissions, a similar green steel conversion at Dearborn Works would greatly reduce the local air pollution burden facing local residents in the heavily industrial area, which is also home to a Marathon oil refinery, a major rail yard and other polluters.    

But it wouldn’t be cheap. Boatman’s report estimated the cost of converting a blast furnace to a DRI furnace and associated electric arc furnaces at $1.57 billion, plus $2.6 billion to build a green hydrogen plant. Utility DTE Energy would need to work with grid operator MISO to add about 2 GW of solar and 2 GW of wind power, plus battery storage, to the grid to power the green hydrogen production. 

The conversion would mean closure of the EES Coke plant, which turns coal into coke for the steel mill, on heavily polluted Zug Island in the River Rouge just outside Detroit, five miles from Dearborn. In 2022, the EPA sued the coke plant, a subsidiary of DTE Energy, over Clean Air Act violations. 

A recent study by the nonprofit Industrious Labs found that the EES Coke plant could be responsible for up to 57 premature deaths and more than 15,000 asthma attacks. The report also found that more than half the people living within a three-mile radius of both the steel mill and coke plant are low-income, and three-quarters of those living around the coke plant are people of color, as are half those living around the steel mill. 

“The total health costs are quite significant,” said Nick Leonard, executive director of the Great Lakes Environmental Law Center, which is representing local residents as intervenors in the EPA lawsuit against the coke plant. “We allow companies to externalize those costs and not account for them. If they were required by some sort of change in policy or regulation to be responsible for those costs, it would certainly make the case they could make this expensive switch” to green steel. 

The law center also represented residents in legal proceedings around Dearborn Works’ Clean Air Act violations, including a 2015 consent decree and a 2023 mandate to install a new electrostatic precipitator at a cost of $100 million. 

Leonard said local residents “know Cleveland Cliffs poses a risk to their health, and they want solutions. They know there’s a problem, they are frustrated by the lack of will or attention from state and local government.”

Cleveland Cliffs did not respond to a request for comment. 

Why Michigan? 

The country’s active steel mills are concentrated in Pennsylvania, Indiana, Ohio and Michigan. Advocates and residents are asking Nippon Steel to consider a green steel conversion at the Gary Works mill in Northwest Indiana, if the global corporation succeeds in acquiring Gary Works owner U.S. Steel. Advocates have also proposed green steel conversions for Pennsylvania mills. 

There are factors that make a green steel conversion both more promising and more challenging at Dearborn Works, compared to other locations, Boatman explained. 

Dearborn Works has only one blast furnace in operation, meaning a potentially smaller investment than at mills with more furnaces. Michigan has also set aggressive renewable energy goals, which could be furthered by the ambitious renewable energy buildout that would be required to produce enough green hydrogen for the steel mill.

“That’s why we’re asking the state of Michigan and the governor to get all the interested parties to the table to actually talk about this, hopefully commit to it, and do the detailed planning that needs to be done to figure out how much wind, how much solar, how much battery storage does there need to be to get this off the ground,” said Boatman. 

Michigan has legal limits on behind-the-meter generation that could make it more difficult to build renewables specifically to power green hydrogen production for a steel mill. Utilities would instead need to produce or procure the renewable energy, and sell it to the steel mill, Boatman explained.

A green steel conversion at Dearborn Works could create a total of about 500 new jobs, Boatman estimates, considering that about 500 jobs would be lost at the closing coke plant but 410 jobs would be created at the hydrogen plant, 550 in new renewables and 170 at the mill itself. The DRI conversion at the Middletown steel mill is expected to create 170 new permanent jobs and 1,200 construction jobs, according to Cleveland Cliffs. 

A 2023 analysis by the Ohio River Valley Institute found that at the Mon Valley Works steel mill in Pennsylvania, a DRI conversion would likely preserve more iron- and steel-making jobs than “business as usual,” with 87% of the current jobs expected to exist in 2031, compared to 69% without a change — as U.S. steel production continues to shrink and automate. 

“We are seeing a general trend for both iron and [secondary] steel production to move toward the South, to states that aren’t friendly to unions and can produce products at cheaper prices by bypassing unions,” said Boatman. “Michigan obviously has a proud history of being a strong union state, it matters to keep those good union jobs there.” 

Labor unions have largely been silent on the concept of green steel conversion. The United Auto Workers union — which represents Dearborn Works employees — and the United Steelworkers did not respond to requests for comment. 

Hydrogen wild cards 

The U.S. Department of Energy plans to spend $8 billion on hydrogen hubs, and a potentially lucrative tax credit known as 45V is being finalized for clean hydrogen. Experts and advocates agree that energy-intensive, hard-to-decarbonize industries like steel are where hydrogen could have the most impact. But large-scale production of pure hydrogen for industrial use is still in nascent stages, and little infrastructure has been built or tested for transporting and storing hydrogen. 

That is among the reasons, Boatman said, that there’s been reluctance among residents and union leaders to embrace the concept of green steel. Boatman’s report emphasizes that community benefits agreements and community engagement processes are crucial to make sure residents are informed about, benefit from, and have a meaningful voice in any green steel plans. 

“Union workers and fence-line community members all want better air quality, lower emissions, who wouldn’t want to go to work knowing you’re safer being there?” she said. “There’s a lot of interest in cleaning up the air. It’s more a question over how that happens. When hydrogen becomes part of the equation, there’s always some concern.” 

She noted that hydrogen could potentially be stored in salt caverns in the Detroit area, though extensive study on the feasibility and environmental impacts would be needed. In Mississippi, a startup company Hy Stor Energy is planning to store green hydrogen in salt caverns, ready to generate electricity during times of high demand. 

Tax incentives for clean hydrogen could provide major incentives for steel mills. But clean hydrogen proposed projects have been in flux nationwide as the rules for qualifying for 45V tax credits are being hashed out in a lengthy, controversial process; and the change in presidential administration adds even more uncertainty. 

“These industries have to be incentivized,” said Roxana Bekemohammadi, founder and executive director of the U.S. Hydrogen Alliance, which advocates for pro-hydrogen policies on the state level. “Europe is creating a mandate — that’s one incentive. We’d love to support any incentives that would allow hydrogen to be leveraged in the steel industry. With state legislation we certainly can incentivize it. It’s a question of how competitive we want to be.”

Advocates make economic case for green steel production at Dearborn, Michigan plant is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Steelmaker’s bid to buy U.S. Steel would extend life of Indiana plant — along with its emissions

A blue industrial building labeled "Gary Works"

A prospective buyer’s recent commitment to reinvest in a Gary, Indiana, steel plant sought to address union and government leaders’ worries about the sale’s potential impact on jobs and U.S. steelmaking capacity.

The plan to extend the life of the country’s largest and most carbon-emitting coal-fired blast furnace, however, has also heightened concerns from Northwest Indiana residents most affected by the facility’s air pollution.

“This is not acceptable,” said Susan Thomas, director of legislation and policy for Just Transition Northwest Indiana. “We now have technology for doing this much more sustainably.”

A study released Monday quantifies the public health threat highlighted by local clean air advocates, linking the Indiana plant to dozens of annual emergency room visits and premature deaths, as well as thousands of asthma attacks. 

Japan-based Nippon Steel is seeking approval from U.S. regulators for a $15 billion acquisition of U.S. Steel, the storied domestic steelmaker whose facilities include the Gary Works plant in Northwest Indiana, along with others in Ohio, Michigan and Pennsylvania, key battleground states where the proposed sale has been a subject of presidential campaigning. Vice President Kamala Harris and former President Donald Trump oppose the sale, as does President Joe Biden.

Much of the public discussion around the proposed sale has centered on its economic and national security implications, but those living near the plant have different concerns and demands. They say they’ve suffered for too long from steel industry pollution, and they only want Nippon as a neighbor if the company installs a new type of furnace that burns with lower or even zero emissions. 

“I would love to see Gary Works transform to green sustainable steel, bringing more jobs, cleaning up the area, that would be an amazing win-win,” said Libré Booker, a librarian who grew up near the mill. “The people have lived under these conditions for far too long. It’s definitely time for a change.”

Gary Works is the largest integrated steel mill in North America, employing about 2,200 people. Northwest Indiana is also home to two other steel mills — Burns Harbor and Indiana Harbor — and two coke plants that turn coal into the high-density raw material for steel. 

The populations in a three-mile radius of the Gary Works and Indiana Harbor steel mills are 96%-97% people of color, and almost two-thirds low-income people. The new study by Industrious Labs, a nonprofit focused on emissions reduction, used the EPA’s COBRA model to find emissions from the Gary Works plant likely are linked to 57-114 premature deaths, 48 emergency room visits and almost 32,000 asthma attacks each year.

The report cited the mills’ and coke plants’ emissions of sulfur dioxide, nitrogen oxides, carbon monoxide, particulate matter, and lead, all pollutants with direct impacts on public health. Gary Works is the number one emitter of PM2.5 particulate matter in the state, according to the company’s self-reported data analyzed by Industrious Labs. 

Industrious Labs steel director Hilary Lewis said the results bolster the demands of clean steel advocates, who want to see coal-fired blast furnaces replaced by direct-reduction iron, or DRI, furnaces powered by hydrogen made with renewable energy, known as green hydrogen. 

Booker was among 15 locals who participated in a recent “Sustainable Steel Community Cohort” run by Industrious Labs, attending five workshops learning about the science and policy of cleaner steel. 

Green hydrogen, green steel 

Green hydrogen is still not produced in large quantities anywhere in the U.S., and all the hydrogen currently produced in the country would not even be enough to power one steel mill, noted Seth Snyder, a partner in the Clean Energy Venture Group, at a recent conference in Chicago focused on clean hydrogen. 

But DRI furnaces can be powered by natural gas, which results in much lower emissions than coal. Cleveland Cliffs — which owns the Indiana Harbor and Burns Harbor mills — is transforming its Middletown, Ohio steel mill to gas-burning DRI with the help of a $500 million incentive under the Inflation Reduction Act. The company says the conversion will make it the steel mill with the lowest emissions in the world. 

With some modifications, DRI furnaces can burn a blend of natural gas and hydrogen or almost entirely hydrogen, experts say, meaning investment in a gas-burning DRI furnace could be a step on the way to “clean steel.” Lewis and other advocates, however, say gas-burning furnaces are not their goal, and they want the industry to transition off fossil fuels entirely. 

Hydrogen can be blended into fuel for traditional blast furnaces too, but the maximum emissions reductions that can be achieved that way are 21%, according to a paper on hydrogen-powered steel production in Europe by the Norwegian non-profit science organization Bellona. 

Nippon has announced it would invest $300 million in restoring the aging blast furnace at Gary Works, keeping it running for another 20 years. Installing a DRI furnace, meanwhile, typically costs over $1 billion.

“There is a gap,” said Lewis. “But these companies have the funding available. They have the money to make these decisions, they’re just choosing not to.” 

Incentives for change 

The IRA incentives tapped by Cleveland Cliffs are no longer available, but this summer California U.S. Rep. Ro Khanna introduced the Modern Steel Act, which would provide $10 billion in low-cost loans and grants, plus tax breaks and other incentives for new and revamped low-emissions steel mills, including hydrogen-fueled DRI.

Separately, lucrative tax credits soon to be available for “clean hydrogen” under the IRA could also make hydrogen-powered steel more financially viable. The specific rules for the tax credit — known as 45V — are still being finalized, amid controversy over what should qualify a project’s hydrogen as “clean.” 

“There are a number of different incentives in the IRA that can help steel companies build out their own green hydrogen infrastructure,” Lewis said. “Everything should be on the table. Steel companies would be such huge off-takers for green hydrogen, they can build their own economy here.”

At the BP Whiting oil refinery, 10 miles from Gary Works, there are plans underway for production of blue hydrogen, or hydrogen made with natural gas followed by capture and sequestration of the emissions. The plan is a marquee part of the Midwest (MachH2) hydrogen hub, one of seven planned hubs nationwide slated to receive $7 billion total in federal funding. Such blue hydrogen could be used to power a steel mill, with theoretically no resulting greenhouse gas or public health-harming emissions.

However, local environmental and public accountability leaders are strongly opposed to blue hydrogen production in the region, since carbon sequestration has not yet been done successfully on a large scale in the U.S., and it would entail pipelines carrying carbon dioxide from the refinery to a sequestration site. 

“The carbon capture component makes us very nervous, it seems to me they’re rushing into this without really taking the time to study it more seriously,” said Northwest Indiana resident Connie Wachala, another graduate of the sustainable steel program. “That might be because of all the money DOE is making available to industry. I wish our elected and industry officials would start thinking more creatively about how to make [green hydrogen] happen, how to make things better for the people in the neighborhoods and around the steel mills as well as for the shareholders.”

A different future 

All four of Wachala’s grandparents came from Poland to work in the steel mills. 

“Growing up in the 1950s, I remember my mom hanging the laundry up in the yard on a clothes line. If the wind was blowing a certain way, you’d get black particles on the clothes,” remembered Wachala, who worked as a creative writing teacher before retiring. “My dad’s car was always covered with that soot.”

Booker’s mother worked as a crane operator at the now-closed Bethlehem Steel mill in Burns Harbor, Indiana — among the first wave of women of color to be hired.

“I was proud she worked in the mill and took care of us, but I did not want [that job] whatsoever, seeing her come home every night after the swing shift, with the big old boots and jacket,” said Booker. “I wanted to go to college. It was a source of contention with my mom and I for some years.” 

That was in the days when locals largely believed, “if you want a good partner, you’ve got to get one that works in the mill,” she continued. “It was like a prestigious job and position. People looked up to people who worked in the mill.” 

Now, Booker laments, “Gary is like a joke,” scorned for its economic decline since the steel industry automated and shrunk — hemorrhaging jobs, and for the pollution that is still emitted. If the merger with Nippon does not go through, it’s widely believed U.S. Steel would eventually close the mill, as it closed its South Works plant in Southeast Chicago decades ago. At their height, the South Works and Gary Works plants together employed about 40,000 people in the Chicago area. 

Thomas wrote a frustrated rebuttal to the Chicago Tribune editorial board opining that the Nippon merger was crucial to Gary’s future. She and other local leaders say they don’t want the mill to close, but they can demand better than the extension of heavily polluting industry. 

“It’s just perpetuation of this as a sacrifice zone,” said Thomas. “‘This is what you’ve always been, this is how we’re going to keep you.’ But that’s not going to fly anymore.”

Steelmaker’s bid to buy U.S. Steel would extend life of Indiana plant — along with its emissions is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

How a solar development turned from threat to opportunity for an Illinois farmer

Sheep walk past solar panels.

When farmer Trent Gerlach found out a solar farm would be built on the land he had long worked in northwestern Illinois, he was disappointed. 

“As a farmer, seeing that land taken out of production is difficult, when you farmed it for many years, you’ve been stewards to that land, fertilized that land, taken care of it as if it was your own,” he said. 

Gerlach’s family had been raising corn, soybeans and livestock since 1968, and like many farmers, they leased farmland in addition to working their own land. And when the owner of one of those leased parcels decided to work with Acciona Energia to help site its High Point wind and solar farm, Gerlach initially was not enthusiastic. 

“The thought of taking productive farm ground out of production with solar panels was not, in my personal opinion, ideal,” he said. 

But Gerlach was determined to make the best of the situation.

Ultimately, that meant a win-win arrangement, where Acciona pays him to manage vegetation around the 100 MW array of solar panels that went online in early 2024. Gerlach does that with a herd of 500 sheep. 

“We don’t own the land, we don’t get a say — that’s landowners’ rights, and I’m very pro that,” Gerlach recounted. “In U.S. agriculture, the biggest thing that gets farmers in trouble is saying, ‘that’s how we’ve always done it so that’s what we’re going to do.’ Renewable energy is probably not going anywhere, whether you’re for or against it, it’s coming, it’s what’s happening. As an agriculture producer, we’re going to adapt with it.” 

A promising arrangement

Researchers around the country are exploring agrivoltaics, or co-locating solar generation with agriculture in a mutually beneficial way. Projects range from growing tomatoes in California to wild blueberries in Maine, with varying levels of success.

Acciona regional manager Kyle Charpie said that sheep grazing appears an especially promising form of agrivoltaics, and one that the company is likely to continue exploring globally. Solar operators need to keep vegetation controlled, and sheep are a more effective and ecological way to do it than mechanized mowing. Acciona has long had a sheep agrivoltaic operation in Portugal, Charpie noted, and two projects in Texas are underway. 

“It’s incredibly cost-effective — sheep don’t break down like a tractor; if a tractor blows a belt, you’ve lost a whole day of cutting,” he said. “These grasses grow wickedly fast, it’s that constant presence of the sheep that’s been super super effective. It aligns with our sustainability goals.”

“It’s tough to say we’re the greatest renewable company in the world [if] we have a bunch of tractors running up and down our fields belching out CO2,” he continued. 

Another advantage, Charpie said, is that at the end of the solar array’s lifespan, the land beneath it will be restored and refreshed.

“We have all these sheep now who will spend 30-plus years breathing, living, using their hooves to churn up ground, even dying; it’s the circle of life,” he said. “When these farms get turned back to the families, that soil condition will be wonderful.” 

‘He saw an opportunity here’

Gerlach’s family had about 50 ewes when the idea for grazing around the solar panels struck. He “hounded” Acciona, in Charpie’s words, to bring an agrivoltaic deal to fruition.

“He saw an opportunity here, and he has been his own best advocate, banging down the door, checking how close are we, when will we get our sheep here,” Charpie said. 

Gerlach ultimately bought about 500 sheep of two types: Dorper and Katahdin, small breeds that can fit easily under solar panels. 

“The panels create lots of shade — during the heat of the day, they’ll all be underneath the panels for shade,” Gerlach said. “In early mornings, late evenings they’re out grazing aggressively. They don’t bother the panels one bit.”

Farmer Trent Gerlach, a bearded man with a blue baseball cap and black shirt, stands with sheep and solar panels in the background.
“We’re stewards of the land, we want healthy ground and livestock. That can marry in fine with clean energy,” says farmer Trent Gerlach. Credit: Acciona

Gerlach said his family “used to raise livestock like everybody did back in the day,” and his farm has won awards for its cattle, but raising livestock has become less profitable in recent years. Agrivoltaics offer an opportunity to delve back into raising sheep, something Gerlach loves. A commercial sheep operation would only be possible with the payments for vegetation management, he said.

“Raising sheep in the United States is challenging because the market for sheep is not very high,” he said. There’s not much of a domestic wool market, and “the meat side of sheep and lamb never really caught on in the U.S. — we’re a beef, pork, poultry-consuming country.” 

Gerlach sells the bulk of his lambs around the Easter season, and largely for kosher and halal consumption. Since that market is so limited, the ewes largely earn their keep being paid to graze.

“We love providing stewardship to the animals. That’s what U.S. agriculture was built on hundreds of years ago,” Gerlach said. “It marries really well with our crop production” on nearby land. “In agriculture you need diversification. By bringing sheep and livestock production in, we can afford to hire more full-time employees.” 

Sheep are the livestock best suited to agrivoltaics, stakeholders agree. 

“You can’t use cattle because they’re too large, they would rub on the panels and break them,” Gerlach said. “You can’t use goats because goats would climb on the panels, and they’re natural chewers, they would chew on the wires.” 

The High Point solar array is divided up into separate plots with fences, “like perfect little pens for the sheep,” added Charpie. 

In a bigger uninterrupted plot, a farmer would likely need to move water sources for sheep strategically around the area to make sure the animals cover the entire plot. Gerlach’s flock only grazes about a fifth of the Acciona solar array. He’s hoping to expand, though feeding and sheltering sheep during the winter when they can’t graze is costly. 

“I’ve got three young kids. Hopefully we raise them in agriculture. It’s such a good practice for our young people to learn responsibility and stewardship,” Gerlach said. 

“[The animals] come first, they get fed and watered and taken care of before us. Sometimes agriculture gets portrayed in a poor light, especially larger production agriculture. I try to really push that that’s not everybody. Talk to a local farmer, a local person — you generally see that we’re stewards of the land, we want healthy ground and livestock. That can marry in fine with clean energy.”

How a solar development turned from threat to opportunity for an Illinois farmer is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Midwest study finds solar farms don’t hurt property values — and they may even boost them

A solar array in a grassy field with trees and farms in the backgroud.

A newly published study examining property values near dozens of large Midwest solar farms has found no significant negative impact — and even a slight positive effect — from the projects, according to the data. 

Loyola University researcher Gilbert Michaud has attended scores of community meetings about proposed solar projects across the Midwest. In past research, he quantified that property values were the most common concern brought up in local hearings about proposed utility-scale solar.

And while solar arrays may have an aesthetic impact, property values are influenced by a wide range of other factors, such as the quality of schools and the local economy.

“I’ve observed a lot of the negative comments framed as ‘I think’ or ‘I saw something on social media,’” said Michaud, an assistant professor of environmental policy at the School of Environmental Sustainability at Loyola University Chicago. So he sought to “elevate the discussion from ‘I think, I think, I think,’” by injecting it with some hard data.

His latest study, published in the December 2024 issue of the journal Solar Compass, looked at property values surrounding 70 utility-scale solar projects in the Midwest and found they actually had a minor positive effect — increasing values 0.5% to 2%. 

“While the impact itself — of a few thousand dollars — might not be incredibly meaningful,” said Michaud, “clearly these projects drive economic development in rural communities, through jobs, tax contributions, etcetera, which in turn increase residential property values.”

Emotions running high 

Michael Wildermuth, a landowner in Allen County, Ohio, was glad to hear about the proposed 300 MW Birch Solar farm, since he supports clean energy and welcomed the economic benefits. Wildermuth cofounded an organization, Allen Auglaize Coalition for Reasonable Energy (named for the two counties where the project would be sited), to advocate for the project as it faced local opposition.

“The nearest neighbors became enraged so quickly and voiced their rage so loudly that others were placed in a reactionary mode,” Wildermuth said. “The neighbors were greatly concerned with property values and flooding. The landowners were afraid of these vocal neighbors, the public officials were afraid of being on the wrong side of a political ‘hot potato’ issue.”

The developer appealed to the Ohio State Supreme Court, and Allen Auglaize Coalition for Reasonable Energy filed an amicus brief in support of the solar farm. Wildermuth wishes more data about property values had been available during the debate. He also thinks opponents ignored the $81 million the developer estimated it would contribute to the economy, with local officials saying the project would have little local economic benefit since the power would go to an Amazon facility.

“Just get people ‘all het up’ and you don’t have to deal with reason and facts,” Wildermuth said.

“Do I think solar farms could actually improve property values or the financial well-being of landowners and neighbors of solar farms? Yes, I do. We argued that. We also pointed out that, in the rural area where the farm was planned, the properties would remain stable for 30 years,” preventing them from being developed for other purposes that neighbors may find less desirable. 

Shining new light

The study, co-authored by Loyola graduate Sampson Hao, notes that the benefits of rooftop solar on energy bills and property values are well-documented. But less is known about how utility-scale solar farms impact nearby properties — even though utility-scale solar accounts for about three-quarters of new solar development. 

The study reviewed 70 solar farms built in the Midwest between 2009 and 2022, from a database by Berkeley Laboratory including solar farms over 5 MW. Hao and Michaud analyzed property values compiled by real estate firm Zillow, comparing values five years before a solar project became operational, with values at the operational date, which is often about two years after construction starts. 

They aggregated by zip code, and controlled for factors like the COVID-19 pandemic that could affect housing values in a given year. Three-bedroom houses were used as a measure of overall property values. They also analyzed “control group” zip codes near the solar farm zip codes, but without solar farms, to account for other factors that might affect property values.

Michaud noted that while the number of bedrooms and other factors have a much larger impact on property values, the small positive impact that nearby solar farms could have could be similar to that of cultural amenities, like arts centers. Solar farms can also have an impact on schools — a major factor in determining property values — since solar projects augment local tax bases. Solar developers also often make ongoing contributions to school districts in the form of donations, supplies and energy education opportunities. 

The study showed high numbers of solar farms going online in 2017 and 2021, with a smaller spike in 2020. 

The projects included in the study range from a 10 MW urban installation in Chicago, installed by Exelon in 2010, to the 268 MW Riverstart Solar Park in Indiana, from 2021. Only 11 of the 70 projects studied were over 100 MW in capacity. Indiana had the most arrays at 22, followed by 14 in Minnesota, eight in Michigan and seven in Illinois. 

The most beneficial impact on property values was from solar farms between 5 and 20 MW in size, perhaps in part because these can be hidden by vegetative buffers. 

“The paper is not about a house that’s 200 feet away from a solar project, that’s very rarely the case,” said Hao, noting that developers often offer to buy properties at above market value in such situations. “We wanted to look at a bigger scale. A project between 5 and 20 MW, you’re really not supposed to even see these with your bare eyes.”

Midwestern focus 

Michaud said that debunking myths around solar farms is particularly important in the Midwest, where there is much untapped potential for solar. While it has less sun than the Southeast and California, which have led the nation in solar farm development, the Midwest has massive stretches of agricultural land where solar can be deployed along with crops.

“This is a really important finding for Midwestern government officials, land owners, and many others to know about,” Michaud said. “Many of these folks are now making decisions about whether to host a large-scale solar project in their community, and the potential impacts to property values is often something that comes up in local debates and at local hearings. Data can help tell a story and move the debate beyond anecdotal or subjective arguments.”

The Loyola study cites a 2018 analysis of 956 specific solar farms by a University of Texas researcher that found no conclusive evidence of impact on property values one way or another. The Loyola researchers also noted a study by Berkeley Laboratory that found about a 1% decline in property values around 2,000 solar farms in six states on the east and west coasts and in Minnesota.

“Most Midwestern states have 10 to 20 gigawatts of potential utility-scale solar in their queue, and developers are coming off of the coasts where the grid is more congested and there is less land for development, targeting agricultural land in the center of the country,” Michaud said. “Finding a large plot of land with good solar irradiation and access to a substation is the sweet spot for a lot of solar developers, and in essence, positive attributes of farming crops in the Midwest are also positive attributes for farming ground-mounted, large-scale solar.” 

Perception becomes reality 

The study notes the irony that perception plays a significant role in determining property values, and fears about property value declines can become a self-fulfilling prophecy. 

“Projection and speculation drive market forces,” Michaud said. “A farmer might be angry that a solar farm is going in the community, he’s going to sell and move to Florida. A buyer thinks, ‘maybe I can negotiate this price down,’ and the house sells for less than its value, and an appraiser looks at that. But none of this is real, it’s just based on speculation and emotion, which then drives data points … it all started with an emotional response.” 

Hao theorized that developers who make poor choices in siting and managing solar farms can have an impact on property values elsewhere, if negative stories about solar spread by word of mouth or social media. 

“Is a developer doing their best to have as much of a buffer as economically feasible?” he asked. “Is the developer making vegetative screenings so you’re not going to see millions of panels? Is the developer doing their best to move the inverter to the center of the leased land so noise doesn’t get over the road? There’s a lot of things at the end of the day that developers can do better. It’s up to the developers to really step up their game to eliminate those potential negative effects.” 

The Loyola study notes that solar developers often do things like hosting county fairs or supporting local organizations that can increase property values. Michaud said it’s possible such dynamics were reflected in their data showing small increases in property values, along with other benefits.

“From an economic perspective,” Michaud said, “locals should increasingly look at these data to understand the job opportunities, wages paid, new tax revenues and negligible or positive impacts on property values, and realize that large-scale solar projects might actually be an amenity in their community.”

Correction: An earlier version of this story incorrectly stated Michael Wildermuth planned to lease land for the Birch solar project, and that he personally filed an amicus brief in the case. The story has also been updated to clarify the scope of Gilbert Michaud’s research.

Midwest study finds solar farms don’t hurt property values — and they may even boost them is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Startup pitches new model to unlock solar for multi-family buildings, in Illinois and beyond

Solar panels on an apartment building rooftop.

Illinois has $30 million in incentives available for solar installations on multi-family buildings. 

So far, though, the state program has not received any applications for such projects, according to Jan Gudell, Illinois Solar for All associate director at Elevate, the organization tasked with running the state program. 

In urban areas like Chicago, residents of environmental justice and lower-income neighborhoods are highly likely to live in multi-family residential buildings where it is extremely difficult to install rooftop solar. 

There is little incentive for a landlord to invest in solar that will provide cost savings to the tenants, and rooftops may need significant upgrades to handle solar. In condo buildings, homeowners association bureaucracy and other concerns must be navigated.

There’s also a lesser-known logistical and structural barrier — if solar is to be channeled to individual residential units behind the meter, a separate solar system is essentially needed for each unit — with separate inverters and wiring.

“That’s a lot of hardware, space and cost,” said Aliya Bagewadi, US director of strategic partnerships for Allume Energy, an Australian startup company that says it can address at least this part of the puzzle, by sending energy to individual units with only one inverter and system. 

The company has served thousands of customers in Australia, New Zealand and Europe with its SolShare technology. Now it is rolling out in the U.S., in sunny southern states as well as Illinois, because of the state’s robust solar incentives. 

“It’s inherently an energy equity issue,” said Bagewadi, who is based in Chicago. “We know [multi-family building residents] are much more likely to be lower-income, longer-term renters. We want to make sure those savings flow to people who can really benefit the most.”

Direct benefits 

Illinois isn’t alone in the lack of multi-family solar arrays. Solar developers and advocates have long noted the challenge nationwide, especially for affordable multi-family rental buildings. A 2022 study by Berkeley lab noted that in 2021, about 3% of solar installed in the U.S. was on multi-family buildings, mostly owner-occupied condos. 

“Solar may be a non-starter in a rental multi-family property because the owner may be looking at a complex, expensive and time-consuming process, where they would have to consider the design, permitting, installation, interconnection, and cost for multiple systems,” said Gudell. “For many property owners, this may be unaffordable and unmanageable.” 

A 2018 study by the National Renewable Energy Laboratory found that the majority of potential capacity for new solar serving low- and moderate-income customers is on renter-occupied multi-family rooftops. California passed a law in 2015 specifically to address the dearth of solar on multi-family buildings, promising to invest up to $1 billion by 2031.

There are typically several ways to handle rooftop solar on multi-family buildings. 

In rental properties, the building owner can own the array, and use the energy to power common areas, like hallways, a pool or gym. Owners can also allocate a portion of the energy savings to tenants, by charging an amenity fee or otherwise collecting some revenue themselves. 

Alternately, the energy can all be sent back to the grid, in areas with viable net metering policies, and the compensation can be shared with tenants or among condo owners, often referred to as virtual net metering. Community solar offers a similar situation — where the solar isn’t onsite at all, but residents can subscribe to partake in savings. 

Solar advocates, developers, lenders, and policymakers have all been working at state and federal levels to improve opportunities for virtual net metering and community solar. 

These arrangements, however, can still be unattractive or impossible depending on state and utility policy. Community solar isn’t even legal in some states, and virtual net metering depends on utility participation. 

The California law requiring solar on new multi-family construction up to three stories high exempts areas served by utilities that don’t offer virtual net metering.

SolShare avoids these challenges by sending electricity directly from the solar array to individual users, without involving utilities or the grid.

“You can do behind-the-meter with direct benefit to tenants,” said Bagewadi. “We’re physically pushing the electrons to multiple meters.”

Possibilities 

Allume partners with solar installers and developers to help deploy rooftop solar on multi-family buildings, including by working with landlords to design financial structures that benefit both the building owner and tenants. In some cases, Allume acts as the solar developer itself. 

With SolShare, a building owner or manager can allocate energy from a shared solar system, based on unit square footage, in equal amounts, or however they choose. 

Where the technology is deployed in Australia and the UK, energy can be sent to different units on demand, Bagewadi explained. In the U.S., the rollout in Florida and Mississippi is being done with preset amounts that can be changed with 24 hours notice. 

An Allume case study from a 64-unit Orlando apartment building with SolShare notes that a 392-kilowatt rooftop system resulted in savings of almost $100 per month for each unit, with electricity purchased from the grid reduced by almost 60%. While the idea is for residents to use solar behind the meter, excess solar can be sent to the grid. Adding an on-site battery to the mix lets residents use all the power on-site behind the meter, and makes solar power available when the grid is down.

Solar advocates hope the EPA’s $7 billion commitment to the federal equity-focused Solar for All program — separate from Illinois’s state program — will “further unlock multi-family solar,” in Bagewadi’s words.

Gudell said Elevate and other experts know there are many Illinoisans living in multi-family rental buildings that would qualify to have solar installed through Illinois Solar for All. They hope policy and technology evolve to match the available funding. 

“We’ll need a solution that addresses the split incentive problem for rental situations, where the building owner cannot or will not subsidize solar for tenants; and the complexity of bringing solar to multiple electrical accounts at one building,” Gudell said. 

“Adoption of a technology that allows for a single system to be split into shares, for use by multiple electrical account holders, could help in that it would simplify the design, permitting and installation process.”

Startup pitches new model to unlock solar for multi-family buildings, in Illinois and beyond is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Study suggests a big role for grid battery storage as Illinois shutters its coal power plants

An array of large utility-scale batteries the size of storage containers at a facility in Texas.

A major expansion of battery storage may be the most economical and environmentally beneficial way for Illinois to maintain grid reliability as it phases out fossil fuel generation, a new study finds.

The analysis was commissioned by the nonprofit Clean Grid Alliance and solar organizations as state lawmakers consider proposed incentives for private developers to build battery storage.

“The outlook is not great for bringing on major amounts of new capacity to replace the retiring capacity,” said Mark Pruitt, former head of the Illinois Power Agency and author of the study, which suggests batteries will be a more realistic path forward than a massive buildout of new generation and transmission infrastructure. 

The proposed legislation — SB 3959 and HB 5856 — would require the Illinois Power Agency to procure energy storage capacity for deployment by utilities ComEd and Ameren. Payments would be based on the difference between energy market prices and the costs of charging batteries off-peak, to ensure the storage would be profitable. The need for incentives would theoretically ratchet down over time. 

“As market prices for power go up, your incentive goes down,” Pruit said. “The idea is to provide an incentive that bridges the gap between the cost of battery technology and the value in the market. Over time, those will equalize and level out.” 

The bills, introduced in May at the end of the legislature’s spring session, would amend existing energy law to add energy storage incentives to state policy, along with existing incentives for nuclear and renewables. 

The study noted that Illinois will need at least 8,500 new megawatts of capacity and possibly as much as 15,000 new megawatts between 2030 and 2049, with increased demand driven in part by the growth of data centers. Twenty-five data centers being proposed in Illinois would use as much energy as the state’s five nuclear plants generate, according to nuclear plant owner Exelon’s CEO Calvin Butler Jr., quoted by Bloomberg. 

The North American Electric Reliability Corporation (NERC) found in its summer and winter 2024 assessments that within MISO and PJM regional grids, Wisconsin, Michigan, Minnesota, Illinois and Indiana are all at “elevated” risk of insufficient capacity. 

“NERC, PJM, MISO and the Illinois Commerce Commission have all identified the potential for capacity shortfalls,” said Pruitt. “You do have some options for alleviating that. You can build transmission and bring in capacity from outside the state. You can maintain your current domestic generating capacity [without retiring fossil fuel plants]. You could expand your domestic generating capacity. And an independent variable is your growth rate. All these have to work together, there’s no silver bullet. We know there are major challenges on each of those fronts.” 

Gloomy numbers 

The latest PJM capacity auction results showed capacity prices increasing from $28.92/MW-Day for the 2024/25 period to $269.92/MW-Day — a nearly 10-fold increase — for the following year. That “translates into an annual cost increase of about $350 for a typical single-family household served by ComEd,” Pruitt said. “The increase in costs indicates that more capacity supply is required to meet capacity demand in the future.” 

There are many new generation projects in the queue for interconnection by MISO and PJM, but many of them drop out before ever being deployed because of unviable economics, long delays, regulatory challenges and other issues. A recent study by Lawrence Berkeley National Laboratory noted that while interconnection requests for renewables have skyrocketed since the Inflation Reduction Act, only 15% of interconnected capacity was actually completed in PJM and MISO between 2000 and 2018, and experts say similar completion rates persist. 

“This finding indicates that deploying sufficient new capacity resources to offset [fossil fuel] retirements is not likely to occur in the near term,” said Pruitt. “Just because something is planned doesn’t mean it gets built.” 

Meanwhile the state is running out of funds for the purchase of renewable energy credits (RECs) that are crucial to driving wind and solar development. The 2024 long-term renewable resources procurement plan by the IPA shows the state’s fund for renewables reaching a deficit in 2028, so that spending on RECs from renewables will have to be scaled back by as much as 60%. 

Long-distance transmission lines could bring wind energy or other electricity from out of state. But planned transmission lines have faced hurdles. The Grain Belt Express transmission line, in the works for a decade, was in August denied needed approval from an Illinois appellate court. The transmission line, proposed by Invenergy, would have brought wind power from Kansas to load centers to the east. 

“That sets it back years,” Pruitt said. “Transmission is a very long-term solution. I’m sure people are working diligently on it, but it’s five to 10 years before you get something approved and built.” 

Value proposition, solar benefits 

Pruitt’s study found that if 8,500 MW of energy storage were deployed between 2030 and 2049, Illinois customers could see up to $3 billion in savings compared to if they had to foot the bill for increased capacity without new storage. The savings would come because of lower market prices in capacity auctions, as well as investment in new transmission and generation that would be avoided. 

Pruitt found that $11 billion to $28 billion in macro-level economic benefits could also result, with blackouts avoided, reduced fossil fuel emissions and jobs and economic stimulus created. 

Pruitt’s analysis indicates that the incentives proposed in the legislation would cost $6.4 billion to customers. But the storage would result in $9.4 billion in savings compared to the status quo, hence a $3 billion overall savings between 2030 and 2049. 

“Solar is great, but solar is an intermittent resource; battery storage when paired with solar allows it to be far more reliable,” said Andrew Linhares, Central Region senior manager for the Solar Energy Industry Association. “Battery storage is not as cheap as solar, but its reliability is its hallmark. Combining the resources gives you a cheap and reliable resource.” 

“Solar and storage is this powerful tool that can help reduce costs for consumers and create new jobs and economic activity,” he continued. “I don’t believe that same picture is there for building out new natural gas resources. Anything that helps storage, helps solar and vice versa. CEJA sees these two technologies as being joined at the hip for the future, they are being seen more and more as a single resource.”

Study suggests a big role for grid battery storage as Illinois shutters its coal power plants is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

‘The sky is the limit’: Solar program opens new opportunities for Chicago trainees

Students wearing safety gear practice installing brackets on a mockup of a pitched roof.

Darryl Moton is ready to “get on a roof.”

The 25-year-old Chicago resident is among the latest graduates of an intensive 13-week solar training course that’s helping to connect employers with job candidates from underrepresented backgrounds.

Moton was referred by another job readiness program meant to keep youth away from gun violence. He “never knew about solar” before but now sees himself owning a solar company and using the proceeds to fund his music and clothing design endeavors.

He and others interviewed for jobs with a dozen employers assembled at a church on Chicago’s West Side on August 1 as part of the fourth training cohort for the 548 Foundation, which is partnering with Illinois Gov. J.B. Pritzker on a recently-announced $30 million initiative to create 1,000 solar jobs in Chicago’s South and West side neighborhoods.   

The 548 Foundation is part of 548 Enterprise, a suite of renewable energy and affordable housing development projects, launched in 2019 and named after the public housing unit where co-founder A.J. Patton grew up. 

The idea is to help keep housing affordable by using solar to lower energy bills, while training people left out of the traditional energy economy to supply that solar. 

“When you invest in a community, the biggest question is who benefits, who gets the jobs?” asked Patton, during the job fair. “This is as good as it gets,” he added, about the recent state investment. “We just have to keep advocating for quality policy.” 

Employers at the job fair said such training programs are crucial for them to find workers in Illinois, where robust solar incentives are attracting many out-of-state companies eager to hire and hit the ground. Mike Huneke, energy operations manager for Minnesota-based Knobelsdorff said he has hired 18 employees from previous 548 cohorts, and he expected to make about six job offers after the recent interviews. 

“Illinois is on fire,” said Huneke. “We’re not from Illinois, so finding this new talent pipeline is what we need. We have a ton of projects coming up.” 

Lisa Cotton, 30, has dreamed of being an electrician since she was a kid. She had received two job offers at the August 1 fair before the group even broke for lunch. 

“A lot of times you go through a training program, get a certificate, and that’s the end of it,” said Jacqueline Williams of the Restoring Sovereignty Project, a partner which administers the wraparound services for the training program. 

The 548 program makes sure to connect graduates with employers, and only companies with specific openings to fill are invited to the job fair. 548 and its partners also stay in contact with graduates and employers to make sure the placement is successful. 

“We have a post-grad program where they can call us any time, and an alumni fund. If an employer says, ‘This guy can’t come to work because his radiator is busted,’ we’ll take care of that,” said Williams. 

Students gather around an instructor explaining a solar mounting bracket.
Instructor Sam Garrard talks with students about how to install a roof-mounted bracket. Credit: Lloyd DeGrane for the Energy News Network

Achieving equity   

After Illinois passed an ambitious clean energy law in 2017, multiple solar training programs were launched in keeping with the law’s equity provisions. But employers and advocates were frustrated by a seeming disconnect in which many trainees never got solar jobs, and employers weren’t sure how to find the workers. 

Since then, the state has passed another clean energy law – the 2021 Climate & Equitable Jobs Act, with even more ambitious equity mandates; and non-profit organizations have developed and honed more advanced workforce training programs. To access incentives under the law, employers need to hire a percent of equity-eligible applicants that rises to 30% by 2030. The program prioritizes people impacted by the criminal justice system, alumni of the foster care system, and people who live in equity-designated communities. 

548 affiliates help employers navigate the paperwork and requirements involved in the equity incentives. Several employers at the job fair said this is a plus, but noted that regardless of equity, they are desperate for the type of highly-trained, enthusiastic candidates coming out of the 548 program. 

“This is a great way to bridge what the state is trying to do with its clean energy goals, and connecting under-represented people with these opportunities,” said Annette Poulimenos, talent acquisition manager of Terrasmart, a major utility-scale solar provider. “We came here ready to hire, and I think we’re going to walk away with some new talent.”   

Member organizations of the Chicago Coalition for Intercommunalism do outreach to recruit most of the training program participants. 

Nicholas Brock found out about the training thanks to a staffer at one of these organizations who noticed his professional attitude and punctuality as he walked by every morning to a different workforce program. 

“Whatever I do, nine times out of 10, I’m the first one to get there, before the managers,” said Brock, 20. “He noticed that and asked me, ‘Have you ever heard about solar panels?’” 

Brock knew little about solar at that point, but now he aims to be a solar project manager. 

“I’m so glad I came here,” he said. “They bring out the best in you.” 

Full service 

Wraparound, holistic services are key to the program’s success. During the training and for a year afterwards, trainees and alumni can apply for financial help or other types of assistance. 

“There are so many barriers, it might be child care or your car is impounded,” said Williams. “We might be writing a letter to a judge asking to ‘please take him off house arrest so he can work.’ It’s intensive case management, navigating the bureaucratic anomalies that arise when you’re system-impacted.”

Moises Vega III, 26 – who always wanted to work in renewables because “it’s literally the future” – noted that his car battery died during the training program, and he was provided funds to get his vehicle working again. 

While ample support is available, the program itself is rigorous and demanding. Classes meet from 9 a.m. to 3 p.m. each day, and trainees are required to check their phones at the door and be fully focused, notes instructor and 548 workforce strategies director Michael Thomas. During the hands-on boot camp week, the day starts at 6 a.m. 

“That’s when the trades start,” noted Thomas. “You need to figure out how that works, how will you get child care at 5:30 a.m.?” 

Sixty-one trainees started in the first three cohorts, and 46 graduated, the first group in July 2023. The fourth cohort started with 25, and as of the job fair, 18 were on track to graduate. Eighty-five percent of graduates from the first three cohorts are currently working in the field, according to 548. 

“Even though I wish the graduation rate were higher, the people who commit to it, stay with it,” said Kynnée Golder, CEO of Global HR Business Solutions, which has an oversight role for the 548 Foundation. “It’s monumental, it’s life-changing for a lot of people.” 

Moises Vega III, leveling solar panel for placement onto a pitched, shingled, mocked-up roof.
Moises Vega III, leveling solar panel for placement onto a pitched, shingled, mocked-up roof. Credit: Lloyd DeGrane for the Energy News Network

Comprehensive curriculum 

The curriculum starts with life skills, including interpersonal relationships, resume-building, financial planning and more. Each day begins with a spiritual reflection. 

The students learn about electricity and energy, and soon move into specific instruction on solar installation and operation. Rooms at St. Agatha’s church served as labs, where students connected wires, built converters and eventually mounted solar panels on a demonstration pitched, shingled roof. 

Terrance Hanson, 40, credited Thomas as “the best instructor ever.” 

“I’m not a young kid, my brain is no longer a sponge,” Hanson said. “He made sure I got it all. Now I feel like I know so much, I’m confident and prepared to get out and show what I can do.” 

He added that people in disinvested neighborhoods have ample untapped potential to be part of the clean energy workforce.  

“You see a lot of basketball players in my community because there are a lot of basketball hoops,” he said. “If there were golf courses in the hood, you would see more golfers. It’s about opportunities. And this was the most amazing and empowering thing I’ve ever been through.” 

Jack Ailey co-founded Ailey Solar in 2012, making it the oldest still-operating residential installer in Illinois, by his calculations. He noted that there can be high turnover among installers, and intensive training and preparation is key. 

“You’re out there in the sun, the cold, it’s heavy physical labor, wrestling 40-pound panels up to the roof,” he said. “You have to know what you’re getting into.” 

“Some training programs vary in quality,” Ailey added, but he was impressed by the candidates at the 548 job fair. 

Trainees test for and receive multiple certifications, including the OSHA 30 for quality assurance, and the NCCER and NABCEP for construction and solar professionals, respectively. The program is also a pre-apprenticeship qualifier, allowing graduates to move on to paid, long-term apprenticeships with unions representing carpenters, electricians, plumbers and laborers – the gateway to a lucrative and stable career in the trades. 

Thomas noted that most trade unions still don’t have a major focus on solar. 

“We’re ahead of the unions, and our graduates bring real value to them, and to the companies,” he said. “The students might know more than a company’s foreman knows. It’s a win-win situation. Solar is a nascent industry, there’s so much opportunity in this space.” 

When Tredgett Page, 38, connected with 548, his auto detailing work and other odd jobs were not going well. He had always loved science and been curious about photosynthesis and the sun’s power. 

“I had been in the streets before, and I was leaning back toward that, but God brought me here,” he said. “Now I have the confidence, I know what I’m talking about, I know about megawatts and kilowatts, net metering, grid-connected, pretty much anything about solar.” 

He sees metaphorical significance in his new trade: “Energy is life, and it teaches you balance, it’s all about negative and positive ions.” He feels like “the sky is the limit” after the training. 

“I have so much skill that they gave me, now I’m hungry to use it,” he said. “I’m a little nervous, but optimistic, excited, very exuberant!”  

‘The sky is the limit’: Solar program opens new opportunities for Chicago trainees is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Indigenous solar consultant works to ensure responsible development in communities scarred by fossil fuels

Saxon Metzger stands in a field of wildflowers with the Chicago skyline in the distant background.

Growing up in Southern California, Saxon Metzger and his brother Ayda Donne — now 29 and 26 — didn’t think much about their Indigenous heritage in Oklahoma. Their great-grandmother’s family fled the reservation after her aunt saw her mother murdered during the Osage Reign of Terror, when locals brutally attacked tribal members over oil resources, as the brothers learned while researching the family history.

In the past decade, the brothers began exploring this history, including the fossil-fuel linked violence and exploitation recently showcased in the film “Killers of the Flower Moon.” Today, the Osage Nation is home to the country’s highest concentration of abandoned, uncapped oil and gas wells, which continue to leak methane and other dangerous pollutants. 

Now, Metzger and Donne are seeking to connect with and give back to the Osage Nation and other tribal communities by making sure clean energy does not leave its own legacy of abandonment or disinvestment. 

Eighth Generation Consulting, an organization Metzger founded, aims to provide solar decommissioning workforce training and project management, as well as promote solar installation. 

“Tribal nations, along with many other historically disenfranchised communities, are justifiably skeptical of development that doesn’t fully acknowledge its potential shortcomings, having been bearing the brunt of fossil fuels,” Metzger said. 

Osage Nation Chief Geoffrey Standing Bear has officially pledged support for the brothers’ vision. In March, Eighth Generation won a U.S. Department of Energy Community Energy Innovation concept phase prize, meaning a $100,000 grant, mentorship and the chance for more DOE funding. Metzger was also recently awarded a Grid Alternatives Tribal Energy Innovators Fellowship, which comes with $50,000 and mentorship, and he is a finalist for MIT’s Solve Global Challenges Indigenous Communities Fellowship program. 

Family roots 

Metzger studied economics at Southern Illinois University and the University of Utah, then returned to Southern Illinois to help facilitate the deployment of solar in the largely rural, lower-income region. 

He was program director for the nonprofit Solarize Southern Illinois, then worked as a project developer for StraightUp Solar, a residential and commercial solar installer focused on underserved areas in Illinois and Missouri. Metzger got an MBA with an emphasis in sustainability from Wilmington University, then worked for a decommissioning company in California. 

Striking out on his own, he co-founded a company called Polaris Ecosystems that does solar decommissioning project management and consulting. Polaris is under contract to support commercial and utility-scale repowering in California and Texas, Metzger said, declining to give more details because of confidentiality clauses in the contracts. 

The company collaborated with a Georgia solar waste management company called Green Clean Solar, whose founder, Emilie Oxel O’Leary, said she plans to partner with Polaris on more contracts. Her company has found ways to reuse solar packaging and components – for example, using thousands of cardboard boxes from solar delivery as mulch for a tree nursery in Hawaii, where landfill space is especially scarce. 

“Saxon and I find these solutions together. We find sustainability. We bring circularity to our conversations,” she said. “Very few [companies] do what we do. These billion-dollar companies have never stopped and thought about this.” 

Metzger now leads Eighth Generation and Polaris from Chicago, while also teaching a sustainable business class at Wilmington University. 

Donne is in charge of grant-writing for Eighth Generation, while pursuing his doctorate in English literature at New York University, with a focus on Indigenous literature and environmental justice. Donne also collaborates with NYU professor and toxicologist Judith Zelikoff, doing blood and urine testing and health workshops with the Ramapough Lenape Nation in New Jersey, who face serious health threats from a former Ford Motor Company illegal dump that is now a Superfund site. Donne hopes to further intertwine the humanities and STEM sides of academia in pursuit of environmental and energy justice for tribes.  

“My family is very scarred by what happened during the reign of terror. They tried to run” from that legacy, said Donne, who also works as chief librarian at the International Center for MultiGenerational Legacies of Trauma. “But repressing things like that rarely works, rarely protects you for very long. I like to think that Saxon and my work is kind of a departure from that history of denying our identity and running from the pain that’s in our family.” 

Bison graze and rest in an open grassy field on the Osage Nation.
A herd of bison on the Osage Nation. Credit: Creative Commons

On visits to the Osage Nation, the brothers say they’ve recognized the cultural as well as economic importance that fossil fuels still hold for the tribe. They strive to acknowledge and respect this dynamic while promoting clean energy. The tribe currently has no large-scale solar on its land, and this year a federal judge ruled that a controversial wind farm must be removed because it failed to get proper permits a decade ago. The tribe has long opposed the wind farm, which was built on sacred land.    

“We’re trying to plug into the existing things that they’re doing, and not show up and say, ‘Hey, we know what the solution is,’” said Metzger. “This is my tribe, these are my folks, my culture, my people. But I am approaching it with the understanding that to a certain degree, I’m also an outsider from a market that they don’t have access to.” 

Metzger added that when he first visited the Osage Nation, “I didn’t see a single solar panel, on the entirety of the reservation. I looked for it. I was shocked. It was one of the few places I’ve ever seen that there were no Trump flags, and there were no solar panels.” 

Metzger said that it is still likely a long road to installing solar on the reservation, but he’s been encouraged by tribal leaders, and received a letter of support in July from Osage Chief Standing Bear. 

A growing need 

More than half of states have decommissioning policies that require financial assurances be put up in advance, according to a 2023 year-end report by the North Carolina Clean Energy Technology Center and DSIRE. Nineteen states have no state-level decommissioning policies at all, the report shows, including Wisconsin, Iowa, Arizona and Pennsylvania.

“When it comes to assurance policies, you want to make sure landowners won’t be stuck with the bill at the end of the day, a dine-and-dash situation,” said Justin Lindemann, a co-author of the report and policy analyst at North Carolina State University’s Clean Energy Technology Center. “In most states, you have to have these finances in place well before the project decommissions.” 

Solar project contracts and permits typically include a decommissioning estimate. In states with financial assurance requirements, developers are usually required to put up incremental amounts of financing over time for decommissioning, so that there is not a major financial burden tacked on to the project’s startup cost. 

Metzger said that in his experience, estimates can be unrealistically low, a situation that in the near-term can benefit everyone, as the project cost appears lower. 

“The reality is that our industry doesn’t really want to have that conversation” about decommissioning costs and logistics, “because a developer, if they included the full cost of decommissioning, would not sell as many projects,” Metzger said. “No one really wants to hear that the project is going to cost more.” 

Lindemann said he hasn’t seen major problems with low-balled estimates, but there still have been relatively few large-scale decommissions. State laws and policies can try to ensure that estimates are accurate and large enough financial assurances are available. For example, Ohio requires that estimates be revised periodically, and if the estimate has increased, the required bond must be increased too.  

Ideological opponents of solar have stoked fears about solar panels filling up landfills and presenting hazardous waste. Those concerns are often exaggerated, as solar panels are made up primarily of steel and glass and the toxic compounds in the cells present relatively little risk, experts say. Even as solar farms expand exponentially, solar waste will still be much smaller than other waste streams, like construction debris and municipal garbage. 

Nonetheless, responsible and smooth decommissioning is crucial for the industry to thrive, experts agree. 

“We live in a social media environment where bad stories, singular bad examples do spread,” said Lindemann. “We need to make sure that relationships don’t get strained because of a lack of direction regarding deconstruction and decommission. Do people involved in or impacted by a project understand what’s in front of them 20 to 25 years down the line? That level of trust and transparency can be built, and comprehensive directives from states and other entities provide the first step.” 

In 2023, almost 33 GW of solar were installed nationwide, and solar deployment is only expected to keep growing. 

“In order to handle that, it’s important to make sure state and local governments have the right rules in place to handle mass decommissioning,” said Lindemann.  

Many challenges 

Metzger notes there are many costs and logistics to decommissioning that can be easy to overlook: the need to remove fences and drive over fields to haul panels off, lodging for workers, renting equipment like pile drivers, dealing with buried electrical conduit or other hazards. 

“If you look at a site, there isn’t one solution,” Metzger said. “Say you have 20,000 panels, that’s a bunch of metal. How heavy is that? What kind of tractor trailers are you going to need to pull it? What about the labor, how many 40-pound panels can someone lift in an hour?” 

Metzger and Donne are developing a decommissioning workforce training curriculum, and hope to eventually train Osage tribal members and others in various aspects of decommissioning work and project management.  

“We’re thinking about what this is going to look like for our tribe in 100 years,” said Donne. “Are these structural resources available when Saxon and I are long gone?”

That perspective is what inspired the name Eighth Generation, Metzger explains. 

“It’s often cited as an indigenous principle to think of an action through seven generations of impact, and that phrase always reminded me that some problems just won’t show up until the eighth generation,” he said. 

“And it feels like that is what’s happening here, as we’re staring down millions of panels annually needing decommissioning. It’s all solvable problems to an industry that genuinely is making the world a better place. We need to follow through on the promise we made as an industry to be meaningfully different than previous energy systems, and taking care of our legacy assets is a necessary component of that.”

Editor’s note: An earlier version of this story described Eighth Generation Consulting as a nonprofit; it is a for-profit entity that is exploring nonprofit status.

Indigenous solar consultant works to ensure responsible development in communities scarred by fossil fuels is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Indiana’s dependence on coal is costing ratepayers millions and holding back clean energy growth

Smokestacks at the R.M. Schahfer Generating Station appear behind a line of trees and a field

Indiana ratepayers spend hundreds of millions of dollars per year for power from coal plants that are operating despite the availability of cheaper sources, including wind and solar.  

The state is emblematic of a larger problem, as electricity market rules typically allow utility-owned power plants to essentially cut in line even when they are not the most economical option for customers.  

A recent report commissioned by the Natural Resources Defense Council examined how this phenomenon plays out in the Midcontinent Independent System Operator (MISO) regional transmission organization specifically, building on previous research by RMI, the Union of Concerned Scientists and others — all of which show that uneconomic coal plant dispatch takes a huge toll on ratepayer wallets and public health. 

The problem happens primarily with vertically integrated utilities or municipal utilities and cooperatives, which can recoup costs of fuel and operations from ratepayers even if they are operating at a loss. In most of MISO territory, energy markets have not been restructured as open markets, making such cost recapture the norm. 

The NRDC study showed that Indiana ratepayers bore the second-highest burden in MISO, paying $338 million for uneconomic coal power from 2021-2023, just behind Louisiana’s $341 million. North Dakota ratepayers spent an extra $120 million, Wisconsin $69 million, and Minnesota $54 million, the study found. 

Indiana’s R.M. Schahfer plant, run by utility NIPSCO, cost ratepayers more than $100 million in such uneconomical dispatch from 2021-2023, the NRDC study found. 

In an ongoing rate case, Duke Energy is seeking to increase reliance on its Gibson and Cayuga plants in Indiana. These plants were responsible for $29 million and $7.6 million in uneconomic dispatch costs to consumers in 2023, according to RMI’s economic dispatch dashboard

“This has been a problem plaguing Indiana coal plants for many years, it’s costing our consumers in Indiana millions of dollars and it’s one of the factors driving rates higher and driving clean energy off the grid,” said Ben Inskeep, program director for Citizens Action Coalition in Indiana. “It’s a tale of utilities making bad decisions as part of their profit motive and then utility regulators failing to hold them accountable as they’re supposed to. Certainly utilities should be operating their plants efficiently and economically, and when they fail to do so, they shouldn’t be getting cost recovery.” 

Duke spokesperson Angeline Protogere said the study misses important context. 

“There are a lot of considerations that go into plant dispatch decisions, and the priority is always reliability of service and economics,” Protogere said. “We weren’t able to replicate the NRDC data, but it appears it’s based on incomplete information. For example, there are times when MISO calls on a unit because of grid reliability needs. There’s a bigger picture that’s not reflected here.”

Skewed markets

The NRDC study found that over three years across MISO, about 400 MW of wind power was curtailed in favor of power from coal plants generating at higher-than-market costs. 

Power producers bid into regional energy reverse-auctions for real-time and next-day power, offering the price for which they can produce their electricity. Grid operators like MISO and PJM are supposed to dispatch the power starting with the most affordable option, until demand is met. 

Even if vertically integrated utilities are not selling their power on the open market but rather serving their own customers, they still need to be dispatched by the grid operator to send their energy onto the grid. 

But under the rules for MISO and other grid operators, coal plants can “self-commit” to run for a given time period even if they cannot produce power below the market rate. The idea is that coal plants can’t ramp up or down quickly, so they may need to keep running at a certain level to be ready to provide more power when needed.  

If this relatively expensive coal power weren’t on the grid, more wind power would be purchased and demand for new renewables would likely be created. 

“That increment of power would be filled through the market selecting the next highest bidder,” providing “an accurate picture of what electricity should cost that gives a signal that incentivizes newer generation,” explained James Gignac, Union of Concerned Scientists Midwest senior policy manager. 

The lower the energy prices at a given time and the lower the demand, the worse the coal plant dispatch problem gets. Data from RMI and a 2020 report by the Union of Concerned Scientists shows that ratepayer losses due to uneconomic coal dispatch were lower in 2022, because Russia’s invasion of Ukraine caused natural gas prices to spike, making coal more competitive by comparison. Conversely, when energy demand plummeted in 2020 because of the pandemic, uneconomic dispatch of coal plants soared. 

Since 2015, the uneconomic dispatch of coal plants has cost Indiana ratepayers $1.9 billion and ratepayers nationwide $20 billion, according to RMI’s dashboard. 

The issue has real impacts on the growth of renewables, experts note. If the practice was prevented, market prices would be higher and there would be more incentive for renewable developers to build projects to sell their power on the open market. Meanwhile if vertically-integrated utilities were not allowed to recoup their costs for uneconomic dispatch, they would be motivated not to run coal plants and might decide to invest in building renewables instead, or at least buy wind power on the open market.    

“I’ve talked with [wind] developers who say they look at where coal plants self-commit uneconomically, and they avoid those transmission lines because they know they will be curtailed,” said Joseph Daniel, principal in RMI’s Carbon Free Electricity team and lead author of the Union of Concerned Scientists report. 

That report shows that if uneconomic coal dispatch was avoided, Indiana customers would save money — but not as much money as ratepayers in other states, because there is less wind power available around Indiana. Over time, a market unfettered by uneconomic coal plants might correct this situation. 

“The greatest immediate savings for customers from stopping uneconomic coal plant operations are in areas where there are existing low-cost resources such as wind power being curtailed by that behavior,” said Gignac. “If the replacement for the uneconomic coal generation is something like a relatively higher-cost gas plant, then the market clearing price is higher and customer savings are not as significant. However, that higher clearing price is a signal and an incentive for low-cost renewables to locate projects in that area and deliver further cost savings. 

“Removing the market distortion of uneconomic coal operations helps move us toward the cleaner, lower-cost energy system we need.” 

Solutions   

Studies show that coal plants that sell their power on the open market – known as “merchant” plants – rarely decide to operate when they are not getting market prices at least equal to their cost of operating – the way vertically-integrated or publicly-owned coal plants do when they know they can recoup their costs from ratepayers, without compensation from the market. In other words, merchant plants do not ask grid operators to be uneconomically dispatched. 

These merchant plants nonetheless seem to ramp up in time to operate when their power is needed, experts note, indicating that vertically-integrated plant operators in MISO are understating their ability to ramp up and down quickly, as noted by NRDC policy analyst Dana Ammann and other experts.  

“There’s so little incentive to ramp up quickly, because the market really accommodates their inflexibility,” said Ammann, lead author of the recent NRDC study. The vertically-integrated coal plants in MISO are “much less flexible than coal plants in other markets. In PJM you see coal plants turning on much more quickly, since the merchant plant operators are reliant on the price signals to turn a profit. They don’t have the guaranteed rate recovery, so they’re very responsive to price signals.” 

State utility commissions can prevent regulated utilities from recouping costs when coal plants are dispatched uneconomically. Michigan regulators did exactly this last year in a rate case for Indiana Michigan (I&M) Power, preventing the utility from passing on such costs for its share of the Rockport coal plant, located in Indiana.  

Daniel said Indiana regulators should likewise protect Indiana customers from paying for uneconomic power from the Rockport plant. The RMI dashboard shows that plant dispatched $142 million worth of such power last year. Meanwhile the Michigan ruling could be considered precedent for Michigan utilities like DTE and Consumers Energy in future rate cases. 

Ammann noted that states can also use the Integrated Resource Plan process to curb uneconomic dispatch, as Minnesota’s utility commission did when it recently decided that Otter Tail Power’s Coyote coal plant can only recoup costs during a designated power emergency.

“It’s an interesting approach for getting ratepayers basically off the hook for coal plants that aren’t retiring, that might still be economic to run for a small number of hours,” Ammann said. 

Grid operators like MISO may have the most important role to play in better managing markets, refusing to dispatch coal plants that aren’t necessary and doing deeper analysis to figure out exactly how much power is needed. Experts say multi-day markets – rather than just real-time and day-ahead ones – could better match supply with demand and avoid unnecessary coal plant dispatch. 

MISO’s Independent Market Monitor has recommended such measures, including de-committing coal power producers who sold into the day-ahead market if it turns out that others – including renewables – could sell power more efficiently in the real-time market once the time comes. 

“MISO works closely with our members, state regulators and our independent market monitor to ensure our markets are efficient,” said MISO spokesperson Brandon Morris. MISO’s June 2024 monthly operations report shows that in June, 18% of coal-fired power dispatched in the region was uneconomic self-committed dispatch. 

Experts note that fuel delivery contracts often include a minimum purchase, so utilities committed to buying a certain amount of fuel might as well burn the fuel even if they are not making a profit on the power. This might not have been an issue in years past when coal plants operated at high capacity most of the time, but as coal plants have become increasingly uncompetitive, the NRDC study notes, they are more likely to be committed to buy fuel they actually don’t need. Fuel contracts are usually of short duration, with 88% of those reviewed by the federal Energy Information Administration expiring by 2025, meaning there is ample opportunity for fuel delivery contracts to be revised, the NRDC study said. 

Such fuel contracts have meant massive stocks of unneeded coal piling up at Duke plants in Indiana, Inskeep said, forcing the company to burn it even if the power isn’t needed.

Protogere said the coal supplies are necessary, as “the goal is to ensure a reliable supply in an increasingly uncertain market. The aim is to manage volatility as well as maintain long-term supply reliability and security, so that we don’t have to resort to higher cost options in the market.”

Inskeep hopes state regulators deny requests by Duke and other utilities to increase coal-fired generation and the recouping of the costs from ratepayers. 

“The bottom line with this uneconomic dispatch situation is it means utilities are keeping their old expensive coal plants open longer than they should,” Inskeep said. “Utilities should be rapidly transitioning to a renewable energy-based portfolio of resources. Instead, utilities are feeling pressure to justify a lot of the bad economic decisions they’ve made in the past, foolish decisions to invest millions or even billions of dollars to keep these plants open.”

Indiana’s dependence on coal is costing ratepayers millions and holding back clean energy growth is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Conservative clean energy advocates keep Trump’s rhetoric at arm’s length

Republican National Convention attendees Katie Bowen and William Maloney at a conservative climate event during the convention at Milwaukee’s botanical garden domes in Mitchell Park.

Editor’s note: No Republicans voted for the Inflation Reduction Act. A previous version of this story incorrectly reported that fact.

Nestled under a glass dome between a humid tropical jungle and a surreal cactus landscape during the Republican National Convention last week, Republican leaders extolled a glowing clean energy future for America, and avoided mentioning nominee Donald J. Trump. 

Their message — delivered at Milwaukee’s Mitchell Park Domes botanical garden — was notably different from the tune a few miles away in the Fiserv Forum, where RNC speakers such as North Dakota Gov. Doug Burgum called for American “energy dominance” based on fossil fuels.

Trump, in his speech the final night of the convention, promised to “end the electric vehicle mandate on day one” and railed against the “green new scam” — pledges echoed in the Republican party’s platform — to loud cheers. 

In interviews with the Energy News Network, Republican leaders dismissed Trump’s frequent demonization of solar, wind and electric vehicles as empty rhetoric and expressed optimism that if elected, he would embrace the job-creation and innovation potential of clean energy.

“I think he’s been tougher on mandates,” said Utah Rep. John Curtis, who is on the U.S. Senate ballot for November. “A lot of my colleagues feel like [energy] should be more market-based-driven, and I feel the same way. This should be market-driven.”

Advocates at the event from across the political spectrum also emphasized the role of states and Congress in promoting clean energy, in lieu of support from the president.

Trump’s antipathy to renewables “does give pause to those who are advocates for clean energy and wanting to address climate change,” said Heather Reams, president of Citizens for Responsible Energy Solutions, a nonprofit organization that works to engage with Republicans. 

“However, there are two ends of Pennsylvania Avenue — there’s the executive branch, and then there’s Congress. We’ve been spending a lot of time over the last decade working with members of Congress who are much more engaged on climate and advocacy and acceleration of clean energy. And that’s different than it was in 2016, when there was very little engagement on climate” from Republican lawmakers.

But it’s debatable whether Republican lawmakers are engaging on climate now. No Republican senators or House members voted for the Inflation Reduction Act, arguably the nation’s largest clean energy bill ever. And while the House Republican Climate Caucus has 83 members, many are ardent fossil-fuel boosters, and environmental advocates question the group’s seriousness.

Trump’s first term saw rollbacks to federal regulations governing waste from coal plants, withdrawal from the Paris Climate Accord, revocation of California’s ability to set stricter tailpipe emission standards, relaxed standards on oil and gas extraction, and much more. In a 2021 analysis, the New York Times counted 28 air pollution and emissions rules that Trump successfully reversed, and 12 related to drilling and fossil fuel extraction. 

Project 2025, the Heritage Foundation policy agenda Trump has distanced himself from but is promoted by prominent backers, seeks to significantly undercut the EPA’s power to regulate greenhouse gas emissions, including by reducing the number of industries required to report emissions. The document refers to climate change as a “perceived threat” and routinely characterizes federal agencies’ work on climate as a politically motivated distraction.

Nonetheless, Reams said she’s hopeful Trump won’t seek to dismantle programs and incentives passed during the Biden administration, as he has pledged to do.  

“We still have governors that are benefiting from a lot of the laws that have been passed” under Biden, she said. “Congress took those votes. They’re supportive of all the economic development that’s coming into their districts. So I think there’s going to be a little bit more of a scalpel than a sledgehammer approach to some of the legislation that was passed” if Trump wins.

Invenergy president Jim Murphy said he would hope to appeal to Trump as a businessman.

“We’re here to share with them what we’re doing as a company, and as an industry, to complete this energy transition the responsible way,” he told the Energy News Network. “There’s no doubt it’s been started, so to do it in the right way. One thing that we’re observing is that the goals and the objectives of the groups are not that different. It seems we have a lot more common ground than people might think.” 

Michigan Conservative Energy Forum executive director Ed Rivet watched the RNC from afar, and noted all the blame heaped on Biden for rising gasoline prices.    

“All of that is fully expected rhetoric for these sorts of events, you’re sometimes throwing out red-meat soundbites,” Rivet said. “But the more important thing for the future if there’s a second Trump administration is, are they going to promote technology being the response to demand for climate action. Because demand for climate action is not going to go away just because we change administrations.”   

Rivet said Republicans — and Democrats — should prioritize competing with China on battery and other clean energy technology development and manufacturing.   

“The RNC is missing an opportunity to say, ‘Our response to climate is going to be unleashing the power of technology in America like no other country can do,’” he said. “Let’s build the best technology in the world. The RNC is missing the opportunity to punch right at the core of how do we really respond to our circumstances.” 

Ryan Huebsch, executive director of the Wisconsin Conservative Energy Forum, also skipped the convention and said he has resisted delving into the official GOP platform. But he is hopeful about conservative leadership on clean energy, citing the expansion of wind power in Iowa under Republican Gov. Kim Reynolds, a delegate at the Republican convention. Between 2017 — when Reynolds took office — and 2022, the state’s wind power grew from 37% to 62% of its net generation, ranking second nationwide behind Texas in wind capacity.    

“They’re exporting wind energy everywhere,” Huebsch said. “Hopefully Wisconsin can be an exporter of clean and renewable energy too. We’d like to see a mix of some of President Biden’s current strategies, and see where we can come in with Trump (if he is elected). Hopefully there’s some middle ground there.” 

Polling shows little concern about climate among Republicans. A March report from Pew Research Center noted that only 12% of Republicans felt climate change should be a top priority for Congress and the president, and only 23% see it as a major threat to the country. 

Indeed, conservative clean energy proponents prefer to tout the job creation, energy independence and individual lifestyle benefits of clean energy, as opposed to the climate implications. 

Katie Bowen, a volunteer at the Republican convention and former staffer for Colorado Republican legislators, lamented that she had to give up her beloved electric vehicle when she moved to Colorado from Las Vegas. She considered Colorado “as granola as you get,” but was surprised to find few charging stations. She also became frustrated that Colorado was not doing more to promote nuclear energy, including as a way to power new data centers.

“How in the U.S. can we not only make energy clean, efficient and renewable, but also how do we power our own technology” — especially new data centers, she said. “Conservatives not only need to accept, but also get behind the whole thing of conservation is not just a political issue. It’s an everyone issue. It’s an American issue.”

Conservative clean energy advocates keep Trump’s rhetoric at arm’s length is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Counting trucks, demanding change: Chicago project aims to quantify heavy-duty vehicle impacts 

Two empty dump trucks drive northbound on Pulaski while a school bus drives south. A pedestrian can be seen walking south on Pulaski Rd. The 31st St. street sign is visible.

On June 7, 2023, exactly 2,206 large trucks and buses passed through the intersection of Kedzie Avenue and 31st Street in Chicago’s Little Village neighborhood. 

That’s an average of 1.5 heavy-duty vehicles per minute — much more in the morning and afternoon — rumbling through this crossroads in a dense, residential neighborhood near multiple parks and schools.

The numbers are the results of a groundbreaking truck counting program carried out by the Little Village Environmental Justice Organization, which is using the information to bolster its demands for electric trucks and an end to development that burdens communities of color with diesel pollution. 

The Chicago Truck Data Project, carried out by LVEJO along with the Center for Neighborhood Technology and Fish Transportation Group, used cameras and software to systematically measure the number and types of vehicles, bicycles and pedestrians for 24-hour periods at 35 intersections around the city. The project website launched this spring, and organizers hope to continue compiling, analyzing and modeling truck counts, as well as helping allies carry out similar work in other cities. 

“This is the power of community science,” said José Miguel Acosta Córdova, LVEJO transportation justice program manager. “We’ve had to collect this data, when this is data the city should have been doing.”

The highest concentration of truck traffic was just south of Little Village in the Archer Heights neighborhood, where 5,159 trucks and buses passed in a day. A few miles east in the heavily residential McKinley Park neighborhood, in a single day over 4,000 trucks and buses passed, along with more than 800 pedestrians. 

“It paints a picture of pedestrian proximity to truck traffic, which is an air pollution concern, and a safety concern,” said Paulina Vaca, urban resilience advocate with the Center for Neighborhood Technology.  

Long-standing demands

In years past, LVEJO members had conducted grassroots manual truck counts — standing on corners to log the frequency of pollution-spewing traffic.

“Unfortunately we weren’t taken seriously by the Department of Planning,” said Vaca. “With [the Chicago Truck Data Project] we wanted to be more systematic with the research. This is hard evidence, hard proof. We wanted community advocates to be able to wield these numbers for organizing efforts, tying them to state-level policies.” 

Electrifying trucks is a primary way to reduce truck emissions, protecting public health while reducing carbon emissions, especially as increasing amounts of electricity come from renewables. 

LVEJO and other groups have for years been calling on Illinois to adopt California’s standards on clean trucks and zero-emissions vehicles. Only 11 states — none of them in the Midwest — have adopted California’s Advanced Clean Trucks standard, according to analysis by the Alternative Fuels Data Center. The standard requires manufacturers to sell an increasing percentage of zero-emissions trucks through 2035, and includes reporting requirements for large fleets. Seventeen states plus the District of Columbia have adopted California’s Zero-Emission Vehicle standards, which create similar requirements for cars and light trucks. Minnesota is the only Midwestern state to adopt those standards. 

A 2022 study by the American Lung Association estimates that if truck fleets electrify by 2050, the cumulative benefits could include $735 billion in public health benefits, 66,800 fewer deaths, 1.75 million fewer asthma attacks and 8.5 million fewer lost workdays. The Chicago area would be among the top 10 metro areas — and the only Midwestern one — that would see the most health benefits from truck electrification, the report found.

A winding road 

The U.S. EPA reports that heavy duty trucks contribute more than 25% of greenhouse gas emissions in the transportation sector nationwide, though they make up only about 5% of traffic nationally. While greenhouse gases don’t have localized health impacts, such emissions from diesel vehicles come in tandem with particulate matter, nitrogen oxides and other compounds that hurt nearby residents most. 

In Illinois, trucks are responsible for 67% of nitrogen oxide pollution, 59% of fine particulate pollution, and 36% of the greenhouse gas emissions from on-road vehicles despite making up only 7% of those vehicles, according to a 2022 study commissioned by the Natural Resources Defense Council.

Cleaning up truck emissions has long been a focus of advocates and policymakers, but progress has been slow. 

An August 2021 executive order from President Joe Biden said that, “America must lead the world on clean and efficient cars and trucks,” and called for a rulemaking process for heavy-duty trucks under the Clean Air Act.

In December 2022 the EPA released a new rule regarding nitrogen oxides and other  emissions from heavy-duty trucks starting with model year 2027, but environmental justice advocates blasted the rule as not protective enough. 

In April 2023, the EPA launched a rulemaking to strengthen curbs on greenhouse gas emissions for heavy-duty trucks manufactured between 2027 and 2032. That led to a final “phase 3” rule governing truck greenhouse gas emissions, published in April 2024 and taking effect June 21.

The final phase 3 rule is billed by the EPA as more protective than the previous rule, but includes a slower phase-in of standards than an earlier phase 3 proposal backed by environmental justice advocates. 

Union of Concerned Scientists senior vehicles analyst Dave Cooke wrote in a recent blog post that the phase 3 regulations mean up to 623,000 new electric trucks might hit the road between 2027 and 2032, “with zero-emission trucks making up over one third of all new truck sales by 2032.” 

“But that number is highly dependent on manufacturer compliance strategy and complementary policies,” Cooke continued, “and the path to a zero-emission freight sector remains uncertain.”

Cooke fears that electric heavy-duty trucks will be sold primarily in states that have adopted California’s Advanced Clean Trucks rule, leaving fewer available for other states.

“The rule risks having communities of haves (in ACT states) and have-nots (in the remainder of the country),” wrote Cooke, “precisely the sort of situation a federal rule is supposed to ward against.”

A national EJ issue 

Reducing heavy-duty truck emissions has long been a focus for Clean Air for the Long Haul, a national coalition of environmental justice groups including the Wisconsin Green Muslims, South Bronx Unite, the Green Door Initiative in Detroit, WE-ACT for Environmental Justice and the Deep South Center for Environmental Justice.

Wisconsin Green Muslims has organized several in-person and virtual events for community members to talk with state and local officials about truck emissions.  

Huda Alkaff, co-founder of the organization, noted that their office is on Fond du Lac Avenue, a major thoroughfare plied by truck traffic. Alkaff described the fight for clean air in a blog during the Muslim holiday of Ramadan, writing that people can fast from food and even water for limited times but cannot abstain from breathing air. 

Alkaff said local leaders would like to do mobile air monitoring and truck counting, similar to LVEJO. 

“Learning from each other, that’s our power,” she said.

In Milwaukee residential areas bisected by highway-type roads like Fond du Lac and Capitol Drive, meanwhile, air pollution is compounded by the safety risks posed by trucks. 

“Let’s look at the routes, let’s look at the timing, the types of things that might be able to happen with minimum disruption,” she said.

She noted that residents don’t want to endanger the livelihood of truckers who can’t afford to invest in new equipment. But she’s hopeful the transition can be facilitated by federal funding, like recently announced EPA grants of $932 million for clean heavy-duty vehicles for government agencies, tribes and school districts.

Bridges, warehouses and railyards

In Detroit, construction of a new international bridge to Canada is expected to increase the heavy diesel burden on local residents already affected by trucks crossing the international Ambassador Bridge, as well as heavy industry.

“We have a huge issue with maternal health outcomes because Black moms are living near freeways and mobile sources [of pollution],” said Donele Wilkins, CEO of the Green Door Initiative and a member of the White House Environmental Justice Advisory Council. “Birth outcomes are huge issues, asthma, issues with heart disease are elevated in ways they should not be because of exposure to mobile sources.”

The under-construction Gordie Howe International Bridge is aimed specifically at commercial truck traffic, and unlike the Ambassador, it will allow hazardous materials. The new bridge culminates in the Delray neighborhood, a heavily industrial enclave that has a much higher Latino population — 77% — than the city as a whole.

In Detroit, Chicago and other cities, warehouses are a major and growing source of diesel emissions from trucks. A 2023 investigation involving manual truck counts by Bridge Detroit and Outlier Media found that one truck per minute passes homes near an auto warehouse on Detroit’s East Side. 

An Environmental Defense Fund study found that in Illinois, 1.9 million people live within half a mile of a warehouse, and Latino people make up 33% of such warehouse neighbors, while they make up only 17% of the total state population. Black people are also disproportionately represented among warehouse neighbors, while white people are underrepresented.

Little Village gained national attention with the closure of a coal plant in 2012, and city officials worked with community members on a stakeholder process to envision alternate uses for the site. Residents envisioned a community commercial kitchen, indoor sustainable agriculture and renewable energy-related light manufacturing as possible new identities.

Many were furious when the site became a Target warehouse, a magnet for truck traffic. LVEJO is now working with elected officials on drafting city and state legislation that would regulate and limit new warehouse development, even as new warehouses are proposed in the area, including a controversial 15-acre plan on Little Village’s northern border.

LVEJO’s Acosta notes that environmental justice is “not only about electrification but land-use reform.”

“The reason why all these facilities are concentrated where they are is because of zoning, historically racist practices,” said Acosta, who is pursuing a doctorate in geography and GIS mapping at the University of Illinois. “We want to completely reform the way we do land-use planning and industrial planning, not forcing our communities to coexist with trucks every day. It’s also thinking about pedestrian and bicyclist access and safety, mobility justice.”

Counting trucks, demanding change: Chicago project aims to quantify heavy-duty vehicle impacts  is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Data centers offer energy peril and promise, with the Midwest increasingly in the crosshairs

A giant glass orb of a building glows in an indigo sky as the sun sets.

Southeastern Wisconsin and the Chicago area are emerging as major players in the national data center explosion, most notably with Microsoft’s $3.3 billion planned data complex near Racine, Wisconsin.

Clean energy advocates in the region say data centers pose both a risk and an opportunity, as they can put major stress on the grid, prolong the lives of coal plants and spark new natural gas plants, but also facilitate significant renewable energy investment. Wisconsin utility We Energies, for example, cited demand from data centers in its recent requests to the Public Service Commission for 1,300 MW of new gas generation. Microsoft, meanwhile, has promised to build renewables in the state while also likely creating demand for new or continued fossil fuel energy.

The organization Data Center Map shows more than a hundred data centers in the Chicago area and a handful in Southeastern Wisconsin, often located on the site of former coal plants or industrial operations. A data center is underway on the site of the shuttered State Line coal plant just across the border from Chicago in Indiana. The data center developer T5 recently announced plans for four to six data centers totaling 480 MW of capacity and costing as much as $6 billion in the Illinois town of Grayslake near the Wisconsin border, adding to data centers it already runs in the region.  

Virginia has long been known as “Data Center Alley,” with about 70% of global internet traffic passing through its servers, according to the Wall Street Journal. Dominion Energy said that because of data centers, its electricity demand in Virginia could quadruple and represent 40% of total demand in the state over the next 15 years. Georgia and Tennessee have also seen much data center construction and speculation. Utilities like TVA, Duke and Dominion have announced plans to build more gas plants and keep coal plants open longer in that region, along with building renewables.

Meanwhile, some experts say the Great Lakes region is an increasingly promising spot for data centers because of its cooler climate that reduces energy demand and the availability of water.

“There is no better place” for data centers than the Upper Midwest, said Josh Riedy, who helped design North Dakota’s first tier-three data center, referring to a data center with high reliability — on a scale of one to four tiers — that includes multiple power sources. Riedy also founded Thread, a grid maintenance software company that he’s marketing as especially helpful to serve data center demand.

“The Upper Midwest can export data around the globe,” Riedy said. We’re starting to see the tide turn, it’s just natural.”

Growing load

Projections abound regarding the way data centers — including those processing cryptocurrency and running AI applications — will increase energy demand nationally and end an era of stagnant load growth.

Last year, the Federal Energy Regulatory Commission predicted 4.7% load growth over the next five years, up from 2.6% previously estimated for five-year growth. Data centers “supercharged by the rise of artificial intelligence” will require between 9 and 13 more GW of electricity over the next five years, according to seven case studies analyzed in a December 2023 report by the Clean Grid Initiative, which does not include data center estimates for MISO or CAISO (California) regional transmission organizations. A McKinsey & Company report predicted 35 GW of total demand from data centers by 2030.  

Load growth sparked by data centers comes on top of a shift from fossil fuels to electric heating, cooling and transportation. A 2022 report commissioned by Clean Wisconsin and RENEW Wisconsin found load growth could increase to 166% of 2022 levels with building and vehicle electrification needed to meet the state’s goals of net-zero emissions by 2050.

“Everything from data centers to manufacturing to AI to cryptocurrency,” said Sam Dunaiski, executive director of RENEW Wisconsin. “These all could be triggers for new load, and it all could be coming to Wisconsin, though it’s not unique to Wisconsin. Things like solar and battery manufacturing are coming online that ironically need new load growth too. We think the best way to meet that new load both environmentally and economically is through renewables and transmission to go along with it. This is a great opportunity for a low-cost renewable energy boom in the state.”

Along with the generation demand, Riedy noted, come needs for grid updates and resiliency, which can ultimately help the grid as a whole.

“If you’ve built and designed a data center, you know the nature of them is in many ways fundamentally different than most energized structures,” Riedy said. “Walmart, for example, is going to consume power, but it will have peaks, and constant power is important but not in the way it is to a data center. With crypto mining or AI model training, you see machines running at near peak performance around the clock. That’s producing a type of strain on the grid that has few comparisons.”

Microsoft and more

Microsoft’s energy plans — like many details about the massive data project — are not yet clear, and the company’s ambitious climate goals give advocates hope that the company will finance much new renewable generation either on-site or through power purchase agreements. The company has announced it will build a 250 MW solar array in Wisconsin.

But Microsoft will likely also purchase power from We Energies, fueling advocates’ worries about new natural gas generation and rate increases for regular customers.

The data center will be located on the sprawling site between Milwaukee and Chicago that was previously slated for an enormous LCD screen factory by the company Foxconn. That plan was repeatedly scaled back and then scrapped in the face of economic issues and local opposition.

Citizens Utility Board executive director Tom Content noted that “under state law passed for Foxconn, Microsoft is eligible for discounted market-based electricity rates. They would pay basically for the transmission and distribution, but a portion of their rates would just be set at wholesale market rate,” rather than the retail amount customers usually pay.  

In February, a subsidiary of We Energies filed a plan with the Wisconsin Public Service Commission for an estimated $304 million in grid upgrades related to the Microsoft project. Public auditors filed a letter with the commission noting exemptions that allow less oversight because the project is in a special technology zone.

The Microsoft plan was touted by President Joe Biden as an example of reinvigorated Midwestern investment, but it has faced concerns about its energy and water use. Meanwhile Microsoft has faced setbacks globally in reaching its climate goals, in part because of the massive energy demand of artificial intelligence applications.

Cost concerns  

Advocates said utilities may use data centers to justify more investment that earns them a rate of return, even when it is not necessarily needed.

“We are concerned that there could be an overinflation of expected demand in order to capitalize on this trend and build more gas as a last-ditch effort,” said Ciaran Gallagher, energy and air manager for Clean Wisconsin.

“There’s a little bit of a sky-is-falling scenario here,” Dunaiski agreed. “In the early 2000s we saw this with load growth [projections] particularly around the internet. People thought the internet would cause our electricity generation needs to explode. They increased, but there were improvements that came with it — infrastructure getting more efficient, and software.”

That precedent raises questions about the rush to build out gas power to accommodate projected demand.

“Gas isn’t coal, but we shouldn’t be striving for the second worst option, for the environment or for our pocket books,” Dunaiski continued. “If we build these gas plants, customers will be paying for them for the next 20, 30 years.”

Gallagher noted that the EPA’s new rules for gas plants make new gas investments even more questionable.

“All the gas plants proposed in Wisconsin and across the country in relation to this demand from data centers will have to comply with these standards, and by 2032 either run not very often or reduce greenhouse gas emissions by 90% through carbon capture and sequestration or  low-carbon hydrogen,” Gallagher said. “That prompts the question: Is it worth the price tag to build these gas plants that could become stranded assets or have to spend additional money to comply with these rules?”

Using existing renewables or zero-emissions nuclear energy to power data centers can impact customers too. Content noted that this strategy “accomplishes the decarbonization goals for the tech companies and the reliability needs for the data center. But then you’re taking the fully depreciated, mostly paid-off asset on utilities’ books and having it serve one or two customers, and then the utilities will have to backfill that with a combination of natural gas, solar, storage, wind or future nuclear to serve the rest of the customers.”

“It’s on everybody’s mind how we’re going to tackle this in a way that ensures we don’t say no to economic development, but don’t make energy costs unaffordable,” said Content, noting that data centers have been a major topic of discussion among the National Association of State Utility Consumer Advocates – including at the organization’s conference in Madison in June.  

“Different states are trying different approaches,” Content said. “There’s talk of changing the way utility costs are divided up — currently among residential, industrial and commercial — and dividing it up four ways, with data centers becoming their own entity. Tech companies are pouring a lot of money into the development of these things. They have the wherewithal to contribute mightily to these projects.”

Renewable opportunities

Gallagher emphasized that renewable advocates are not opposed to data centers.

“We think data centers and the economic development that they can bring are not at odds with environmental protection and climate mitigation,” she said. “This can be a low-carbon industry but only if new additional renewables are built to supply all or most of their demands. We think that’s viable if renewables are cost-competitive with gas, and pairing renewables with storage can provide the type of reliability these data centers need.”

Riedy sees renewables and gas as a necessary mix to fuel data centers. While renewables’ intermittency might be seen as a barrier, he said renewables actually could have a unique role to play in energizing data centers – especially in the Midwest.

“In the heat of the day you’re delivering, so having alternate [energy] sources to peak-shave and normalize the cost of energizing that equipment is very important,” Riedy said. “It’s leading to a change in thinking around where to place data centers, that speaks to Wisconsin, the Dakotas. 

“The old way of doing things was generate power in one place, and transmit it for thousands of miles. What data centers are understanding with their insatiable and constant need for power is they are more logically placed by power generation so you can buy that off-peak power, to maintain that load consistently. Since solar and wind overproduce [at certain times], if you can harness that imbalance it’s somewhat of a win-win.”

Data centers offer energy peril and promise, with the Midwest increasingly in the crosshairs is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Illinois passed ‘strongest standards in the nation’ on carbon sequestration, but advocates say more work is needed

Illinois’s carbon dioxide pipeline and sequestration law passed May 26 is being described as among the nation’s strictest. It is only the second carbon dioxide pipeline moratorium in the U.S., after California, and it creates a significant permitting process once the moratorium is lifted.

But landowners and advocates are still unhappy with several key provisions left out of the law, and said they are exploring options to end the use of eminent domain for carbon pipelines and protect landowners from carbon being sequestered in their underground pore space against their will.

“There’s a lot of good in there, but it definitely is a work in progress in terms of guard rails,” said Jennifer Cassel, a senior attorney for Earthjustice who worked with the Illinois Clean Jobs Coalition that endorsed the new law after members previously worked with lawmakers on a stronger bill. “The federal uncertainty was part of the push, and there’s so much of a gold rush already happening,” with applications for 22 carbon dioxide injection wells pending in the state, plus various pipeline proposals.

SB 1289, or the SAFE Act, allows a company seeking to sequester carbon to move forward if the owners of 75% of the affected land agree to the plan, which provides them compensation. That means, critics note, that owners of 25% of the land cannot stop a project, even if they are opposed. Owners of small several-acre parcels would have few rights compared to large landowners, noted Pam Richart, co-founder of the Coalition to Stop CO2 Pipelines.

The coalition had worked with lawmakers on a much more stringent bill, which would have limited the use of eminent domain to acquire land for pipelines and sequestration. It would also have banned the injection of carbon dioxide through the Mahomet Aquifer. The Farm Bureau opposed the SAFE Act in part because it didn’t address eminent domain, though the new law includes some protections regarding compensation for land damage.  

“Landowners are profoundly disappointed that the act was approved without eminent domain [limits],” Richart said.  “The landowner protections weren’t as strong as we hoped.”

The coalition’s preferred bill would not have allowed forced integration of pore space against landowners’ will. Richart said they expected some compromise on that front, but not to the extent enshrined in the SAFE Act.  

“That’s not how this is supposed to work,” she said. “If a project is in the public interest, you wouldn’t expect landowners of 25% of the land to hold out.”

The SAFE Act stands for Safety and Aid for the Environment in Carbon Capture and Sequestration. It still awaits signature by Gov. J.B. Pritzker, who has indicated he will sign it, and bills become law after 60 days in Illinois if the governor takes no action. 

Future options

Richart said advocates don’t plan to “reopen the whole process” around legislation, but hope to work with legislators on a trailer bill that could increase protections for landowners.

“A lot of legislators expressed serious concern about the aquifer, I wouldn’t be surprised if those issues and potentially others come back up in some form,” Cassel said.

The new law places a moratorium on new carbon dioxide pipelines for two years or until the federal Pipeline and Hazardous Materials Safety Administration issues regulations for carbon dioxide pipelines, which are in the works. The previous bill advocates backed included a moratorium of four years or until the federal regulations are adopted. Cassel said labor unions felt that moratorium was too long.   

Richart said the Illinois law is only a “quasi-moratorium” since companies can begin the application process for new pipelines even before the PHMSA regulations come out.

Meanwhile the SAFE Act does not include setbacks from properties for carbon dioxide pipelines. If the PHMSA regulations do not include setbacks, which is likely, Illinois advocates could push for setbacks under the permitting process created by the SAFE Act, since it allows for additional safety measures to be developed provided they are not in conflict with federal regulations.

Advocates say county governments, which have in multiple cases refused to approve sequestration sites connected to pipelines, could work together to push for setback policy.

Benefits of new law

Advocates are grateful for a robust public engagement process created by the new law.

“Before there was no requirement to notify anybody about a carbon dioxide pipeline except when the Illinois Commerce Commission was ready to begin its application process,” said Richart, citing two recent controversial proposals. “Wolf never notified anybody, One Earth never notified anybody. The commerce commission just said, ‘You better come to this hearing, it might be subject to eminent domain.’”

The Illinois Commerce Commission decides whether a given proposal is in the public interest and able to invoke eminent domain, but previously the commission had no authority over carbon sequestration sites and its consideration of pipelines was largely limited to property values.  

The SAFE Act creates a permitting process that requires companies hold two public meetings in each affected county and post materials about the proposal and public comment process. Under the new law, the Illinois Commerce Commission can consider safety and other information in deciding whether to grant eminent domain powers.

Under the new law, companies must also pay into an emergency response fund and create an emergency plan, which entails modeling about possible risks and the expected distribution of carbon dioxide plumes in case of a leak.

“They have to do computational fluid dynamics modeling, and they have to make it public, at a time when there is a definite movement by pipeline developers to make their modeling proprietary, confidential,” said Richart. “So this is huge.”

Companies doing carbon injection and sequestration must also put up money for future environmental mitigation, so future costs don’t fall on the state. The law does not allow self-bonding, a controversial financing mechanism used by coal companies in the past that ultimately forced the state to foot the bill for mine cleanup.


The SAFE Act also enshrines safeguards to make sure that carbon capture and sequestration doesn’t ultimately lead to an increase in air pollution by allowing coal plants to keep operating, and it prohibits the use of carbon dioxide for enhanced oil recovery.

These protections gained approval from environmental justice organizations like the Little Village Environmental Justice Organization, a member of the Illinois Clean Jobs Coalition.

The Illinois Corn Growers Association and Illinois Renewable Fuels Association also backed the new law. Their members stand to benefit from the expansion of the ethanol industry, which depends on carbon sequestration to reduce its greenhouse gas emissions. While carbon capture and sequestration was launched in Illinois in relation to coal plants, recent pipeline proposals have focused primarily on connecting ethanol plants to sequestration sites.

State Rep. Ann Williams, a sponsor of the law, said in a statement that:

“Illinois is a national leader on climate and energy policy, and SB 1289 ensures that if companies are going to use CCS as a climate mitigation strategy, they will need to meet some of the strongest standards in the nation. The CCS protections bill ensures critical guardrails are in place to protect Illinois taxpayers, landowners and our environment.”

Illinois passed ‘strongest standards in the nation’ on carbon sequestration, but advocates say more work is needed is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

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