Wind will help Iowa meet new carbon pollution rules

The federal government boosted the amount of carbon pollution Iowa must cut at its power plants, under a massive climate change plan announced Monday by President Barack Obama.

The Clean Power Plan calls on utilities to cut carbon dioxide pollution 32 percent by 2030 from 2005 levels. The U.S. Environmental Protection Agency initially proposed about a 30 percent reduction in carbon pollution last year.

The plan calls for even greater carbon emissions cuts for Iowa — 42 percent over the next 15 years.

But some energy experts say the state won’t have as much trouble reaching that goal as it might appear, because renewable energy such as wind and solar are supplying more and more of the state’s power. Iowa gets 28 percent of its energy from wind.

In fact, the American Wind Energy Association predicts that Iowa’s wind energy could supply enough power to more than match the state’s energy usage by 2030, with excess energy to export to other states.

Obama said carbon pollution is the largest contributor to climate change, which is hurting Americans’ health, contributing to extreme weather, including droughts and wildfires, and threatening businesses like farming.

“No challenge poses a greater threat to future generations than climate change,” the Obama administration said Monday. “We have a moral obligation to leave our children a planet that’s not polluted or damaged.”

Environmental groups touted the plan, while business groups threatened lawsuits and Republican presidential candidates promised to quickly dismantle the plan.

“EPA’s effort to shut down existing power plants ... will inflict significant damage to our entire economy and reduce our nation’s global competitiveness, without any significant reduction in global greenhouse gas emissions,” Thomas Donohue, CEO of the U.S. Chamber of Commerce, said in a statement.

“It is a bad deal for America, and we will pursue all available options, including litigation if necessary, to block the EPA’s regulatory power grab from taking effect,” he said.

What does it mean for Iowa?

The plan’s call for Iowa to cut carbon emissions from power plants by 42 percent is a substantial increase from the 16 percent reduction announced a year ago.

But the difference may not be as significant as the number suggests.

The final goal only declined slightly — from 1,301 to 1,283 pounds per megawatt hour. The bump came primarily from the way EPA calculated beginning carbon levels.

The federal government did not take into account states’ renewable energy and energy efficiency gains, said Nathaniel Baer, energy program director for the Iowa Environmental Council.

Baer said Iowa should be able to meet the goals, especially given the state’s strength in wind. “Iowa has one of the least stringent 2030 targets of all states,” Baer said.

What’s the impact for consumers?

It depends on whom answers the question.

The White House said the plan would save Americans $85 annually by 2030.

MidAmerican Energy and Alliant Energy, Iowa’s largest utilities, said they’re still evaluating the plan and its impact on customers.

But MidAmerican said it doesn’t “anticipate that the ruling will have a significant impact on our customer rates,” given the company’s growing investment in wind energy. MidAmerican’s CEO Bill Fehrman last week said the Des Moines-based company expected to get 57 percent of its energy from wind after adding 552 megawatts of wind energy.

The $900 million project will increase the company’s investment in wind to $6 billion.

But Kristin Failor, state director of the National Federation of Independent Business, said the plan will drive up costs for small-business owners and “drain their customers of discretionary income.”

“That’s a deadly combination for the small business sector,” Failor said. “Operating expenses will increase as the cost of electricity rises, and customers will have less money to spend on Main Street. It’s a recipe for fewer jobs and slower growth.”

What does it mean for wind, solar industries?

Baer, who leads the Iowa Environmental Council’s energy program, said Iowa benefits in multiple ways from the plan: Iowa can grow wind energy to meet the state’s new goals as well as sell wind energy to other states that need help meeting their requirements.

And Iowa’s wind manufacturing industry should see increased demand for turbines, blades and towers.

“Iowa is a good example of a state where the transition is already underway to clean energy,” he said. “The Clean Power Plan can strengthen and accelerate that transition in the coming years.”

Others agreed.

“In Iowa, we are blessed with abundant clean sources of energy like the wind and the sun,” said Susan Guy, executive director of Iowa Interfaith Power & Light. “The Clean Power Plan will not only reduce the amount of harmful carbon pollution that is being emitted, but also serve to further drive innovation in clean energy that will be good for jobs and rural economies in our state.”

“Iowa’s technical potential for solar energy is enormous and it provides significant economic benefits,” said Tim Dwight, president of the Iowa Solar Energy Trade Association. “Last year, solar energy employed 900 Iowans and supports nearly 50 Iowa businesses.” The plan “will encourage more growth while keeping valuable dollars and jobs in our state.”

However, Failor, of the National Federation of Independent Business, said renewable energy sources such as wind and solar are “are far weaker and more expensive” than fossil sources.

“Energy is necessary to provide every service and manufacture every product. Iowa lacks the infrastructure to create alternative forms of energy and will be disproportionally impacted by higher electricity prices,” she said. “These costs will have to be passed on to consumers.”

Iowa’s carbon footprint

39 — Million metric tons of carbon pollution emitted from Iowa power plants in 2013; it’s an amount equal to the yearly pollution from more than 8 million cars, the EPA says.

15 — Percentage reduction in the amount of carbon pollution from Iowa’s power sector since 2008.

7,900 — People employed in the wind and solar industries in Iowa.

16.3 — Million megawatt hours of wind generated in Iowa last year, enough energy to power 1.49 million homes.

Source: American Wind Energy Association, U.S. Environmental Protection Agency