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Farrell: How Communities Can Take Control Of Their Energy Futures

Platte Lake, Benzie County, MichiganJohn Farrell is a researcher with the Institute for Local Self-Reliance. He recently wrote this commentary for Minnesota Public Radio on how local communities in the Midwest can begin to take control of their energy futures.

"State policies to support local ownership can triple or quadruple the economic benefits of their wind resource. Energy efficiency standards can bring self-reliance closer and reduce consumer costs. And PACE programs can bring the energy home, putting the power of self-reliance in every community.

"Energy self-reliant states have stronger economies. And new data on wind power potential reveals that five Midwestern states could match their current electricity use with domestic wind power. But along with the good news, these states — Missouri, Illinois, Indiana, Ohio and Michigan — should take note of the stakes.

"How can these five states get "something real"? There are 32 states that have enough in-state renewable energy to be energy self-reliant. And successful models in these states illustrate how local ownership, energy efficiency and innovative local government financing can maximize the economic returns of this resource.

"A single wind turbine creates $1 million in economic activity, according to theAmerican Wind Energy Association. And that's just a generic, utility-scale turbine.

"How important is local ownership? Ohio's wind potential could generate 94 percent of the state's electricity and — if locally owned — $173 billion in economic activity.

"States can also move toward energy self-reliance by reducing demand. Efficiency Vermont — the state's nonprofit clearinghouse for energy efficiency — used aggressive, targeted programs to keep electricity consumption flat in 2008.

"States are also empowering cities and counties to pursue energy self-reliance, with "property assessed clean energy" (PACE). PACE enabling legislation lets local governments use their bonding authority to give citizens full financing for substantial energy efficiency and renewable energy improvements on their property.

"The costs of the improvements are covered via a loan that is paid back on the person's property taxes over a period up to 20 years. The PACE approach has two key benefits. Because property owners are responsible for the entire loan, there's no general taxpayer liability and no impact on city budgets or county credit ratings. Additionally, the PACE loan removes the upfront costs of investing in renewable energy and efficiency, and the loan terms match the payback period of the improvements."

To read the full article, click here.

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Photo: Storm Clouds, Platte Lake, Benize county by j_lakechick.

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