Counterpoint

I want to correct several inaccuracies that were published in a Dec. 30 commentary, "It's important that the bounties of renewable energy stay at home."

Authored by three Republican legislators, the commentary erred in its description of Minnesota's Community-Based Energy Development (C-BED) tariff and mischaracterized the AWA Goodhue Wind project.

In 2005, Republican Gov. Tim Pawlenty and legislators enacted the C-BED tariff to optimize state and local benefits from renewable energy development and to facilitate development of community-based renewable energy projects throughout Minnesota.

The authors of the Dec. 30 article -- state Reps. Tim Kelly, R-Red Wing, and Steve Drazkowski, R-Mazeppa, and state Sen. John Howe, R-Red Wing -- allege that the Goodhue project has changed dramatically since it began in 2008, that it fails to meet C-BED criteria and that the Minnesota Public Utilities Commission has not provided appropriate oversight.

None of this is true.

Among the criteria that a C-BED project must meet:

• No single qualifying beneficiary, which includes Minnesota residents and businesses, can own more than 15 percent. The law does not require a Minnesota resident or business to have an ownership interest in the project.

• At least 51 percent of the net revenues from a power contract must flow to qualifying beneficiaries, which include Minnesota residents, contractors, services companies, local governments, financial institutions, companies that manufacture parts and wind turbine equipment, and operation and maintenance companies.

Wind projects cost approximately $2 million to $2.5 million per megawatt of installed capacity. These capital-intensive C-BED projects are typically financed using out-of-state money, since wind projects utilize federal production tax credits.

Most Minnesota residents and businesses do not qualify to use these credits. As a result, most C-BED projects are majority-owned by out-of-state investors; however, the majority of the revenue stays in Minnesota. C-BED has helped attract foreign and out-of-state investments in Minnesota, which has put Minnesotans to work.

The AWA Goodhue project is made up of two 39-megawatt power contracts and is exactly the same project, conceived by local residents and developers, that was approved by the Public Utilities Commission as a C-BED project.

Once in commercial operation, the local group will become owners of the project; it will be operated by local workers. Contrary to the authors' assertions, more than 51 percent of the project's revenues stay in Minnesota.

Despite our biases and constituencies, it's important to have the facts straight when evaluating community-based wind projects.

We should not rush to throw out legislation that has been proven to benefit Minnesotans for a lack of understanding of how wind projects are built, financed and operated. C-BED is the product of many interested Minnesotans who participated in Pawlenty's C-BED task force.

C-BED projects are paying millions of dollars to Minnesota landowners and locally owned businesses. They have helped create and support many wind industry construction companies, developers, civil-engineering firms and other professional associations.

C-BED is working for Minnesota, and the AWA Goodhue project will work to bring millions of dollars to Minnesota landowners, workers, businesses and local governments.

The AWA Goodhue project is being developed using a local wind developer, as well as a Minnesota civil-engineering company, construction company and other professional firms.

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Dan Yarano is chairman of Fredrikson & Byron's Energy Practice Group and was a member of Minnesota's Community-Based Energy Development (C-BED) Advisory Task Force. He's legal counsel for the AWA Goodhue Wind project.