business

Half a billion dollars of investment in renewable energy over the next two years could be at risk if Wisconsin lawmakers approve Gov. Scott Walker's wind turbine siting bill.

The bill, praised by some as a strong defense of property rights, would virtually halt wind development in the state, industry leaders say.

"This will be the biggest regulatory barrier in terms of setbacks in the country," said Denise Bode, chief executive of the American Wind Energy Association, based in Washington, D.C. "You're adding a new regulatory barrier and putting a 'closed for business' sign on Wisconsin for wind development."

A restrictive environment for wind development would create a chilling effect for companies that make parts for wind turbines and want to open plants in the state, following the lead of firms such as TowerTech in Manitowoc, Wis., and Ingeteam, which is building a factory in the Menomonee River Valley.

Many states have no setback requirements, deferring to local units of government. Of those that do, none has a setback from turbines as deep as Wisconsin's new proposal, Bode said.

Walker's bill, proposed as part of a regulatory reform package, would mandate minimum setbacks of 1,800 feet between a wind turbine and the nearest property line. That compares with a setback of 1,250 feet from a neighboring residence approved by the Public Service Commission in a rule adopted last year and set to take effect this year.

Tom Larson, chief lobbyist for the Wisconsin Realtors Association, said the proposal is needed to protect homeowners who live near wind turbines.

"We think that with this bill Wisconsin would be the only state in the country to have an adequate setback for property owners," Larson said.

The problem is with the choice of locations, said Bob Welch, who represents a coalition of local groups that have mobilized against wind farm developments.

"The real issue is, if you were siting wind turbines in the kinds of places where they belong -- like the wheat fields of North Dakota -- then Walker's provision wouldn't affect you at all," said Welch, a former legislator who is spokesman for the Coalition for Wisconsin Environmental Stewardship.

During his campaign for governor last year, Walker vowed to streamline Wisconsin's regulatory system to be more business-friendly and sympathetic to property owners.

"There is a fair amount of concern from individual residents in these areas where you see an abundance of wind farms being put up," Walker said. "This is about giving them more control in that process -- something they felt was lacking by the previous legislation and by the PSC's regulations."

But Walker's proposal is so strict it would stall development across the state, said Michael Vickerman, executive director of Renew Wisconsin, an advocacy group that has tracked the growth of the state's renewable sector.

A total of $1.8 billion in investment may be at stake if every wind farm now in the planning stage in the state is halted. About $500 million of that investment is at risk over the next two years from projects poised to start construction, he said.

"There are very few locations in the entire Badger State that could overcome such extreme constraints," Vickerman said. "You can count the locations on the fingers of one hand."

Wind farm development in Wisconsin has generated more controversy than in other states because the areas most suitable for wind turbines are more densely populated than rural expanses of Iowa, Minnesota and the Dakotas.

Opposition to wind farms led some counties to enact wind power moratoriums and other restrictive rules. The patchwork of local rules stalled projects, prompting the Legislature to call on the PSC to set a statewide standard.

Bode said the industry isn't pleased with -- but could live with -- the standard that was adopted by the PSC.

Dan Ebert, who chairs the state's wind siting advisory council, said the end result isn't perfect, but does a better job at balancing competing interests than Walker's bill does.

"We shouldn't have the Realtors Association dictating energy policy in this state," said Ebert, senior vice president at WPPI Energy in Sun Prairie. "This puts a stake through the heart of wind development in the state of Wisconsin."

Wondra Construction of Iron Ridge has laid off 30 of its 35 workers as wind development work has slowed. The company worked on a Wisconsin wind farm in 2008 and a big one in Pennsylvania last year, and had been hoping to bid on more Wisconsin projects.

But, said Roger Thimm, Wondra's co-owner, "Everything's in a holding pattern right now."

Lee Bergquist and Patrick Marley of the Journal Sentinel staff contributed to this report.