| We have the potential to be a leader in renewable energy development and use. Michigan is the 14th windiest state in the nation and the second windiest state in our region. In fact, just this month, the first of hundreds of new wind turbines were installed on farmland between Pigeon and Elkton. The Wolverine Power Cooperative plans to purchase energy from a 32 turbine wind farm under construction in Huron County that will power some 15,000 homes. This project represents an investment of $90 million in the local economy, including 80 construction jobs.
Recent studies suggest that implementing a modest RPS could lead to the creation of thousands of jobs, and would help to keep a portion of the more than $18 billion annually we spend on out-of-state energy sources here in Michigan.
I believe that a mandated standard of 13% by 2015 and 20% by 2020 will create jobs in Michigan and help turn our economy around. By passing an aggressive renewable standard we will be sending a signal to manufacturers of renewable generation equipment that Michigan is serious about renewable energy.
Some argue that the cost of energy generated by renewables will be higher than the cost of energy generated by traditional sources. As we transition in this area, this may be true. However, long term energy costs would be reduced as the infrastructure is completed to harness wind, solar and other sources of renewable energy.
We only need to look at the experience of other states to see that this is the right policy and the right approach to meeting our energy needs in the future.
To date, some 18 states have implemented RPS policies, and while few states have more than five years of experience, states like Texas and Minnesota are already declaring success. In fact, the Texas RPS is one of the most effective and successful in the nation. The state is ahead of its annual requirement schedule with nearly 1,200 MW of new renewable energy already installed. And given the success of the existing law and the state's vast renewable energy potential, at least two proposals have been made to increase the state's standard
Pennsylvania, California, Colorado Arizona, Nevada, New Jersey, New Mexico, and Wisconsin have all had preliminary success with their initial RPS policies and have accelerated their standards.
We in the Democratic Caucus believe that Michigan's economy and the environment are best served by forging ahead with a plan to create jobs and reduce pollution, and adopting an aggressive renewable energy standard would be a bold step in that direction.
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