Renewing the energy debate: States are expanding their use of renewable energy to protect themselves from fluctuating energy costs and to rejuvenate rural economies.

• Author: Galiano, Troy

Kevin Willert's family has farmed the Buffalo Ridge area in southwestern Minnesota for more 100 years, but now he has a new crop: the wind.

Willert heads a landowners' association that leases land to developers who build wind turbines to generate electricity. In return for the use of their property, Willert and his neighbors receive annual royalties based on the productivity of the turbines.

"The dollar amounts vary, but the most productive ones can each bring up to $3,000 a year," he says.

Not bad when you consider that soybean and corn annually gross around $300 an acre in this region. Each of the large, modern turbines occupies less than an acre and, according to Willert, is compatible with traditional land uses. "You can plant crops up to about 40 feet from the base, and they don't bother the cattle. My cows rub against them all the time," he says.

The wind turbines are also a benefit to the community--they've become somewhat of a tourist attraction. Willert describes the slender tubular towers as "more aesthetically pleasing" than what people envision. "People used to drive straight through the area, but now they stop to ask about the turbines," he says. "I'm not sure how many tourist dollars they generate, but it's enough that the local business people talk about it."

Wind, solar power and geothermal energy won't replace fossil fuels as the prevalent source of energy any time soon. But using renewable energy in tandem with traditional fuels can protect the nation's economy by extending the life of domestic fossil fuel resources. Renewables also enhance national security by reducing our reliance on the fuels we import from consistently volatile regions of the world.

Many states are expanding their use of renewable energy in order to diversify their energy and economic options. This balanced energy approach offers protection from unpredictable surges in fuel costs, as was the case in 2001 when natural gas prices quadrupled. In addition, states are interested in the revenue that renewable energy technologies can generate.

"States are leading the charge to develop domestic renewable energy resources," says P. J. Dougherty, national coordinator of the Department of Energy's Wind Powering America Program. He says lawmakers are interested in ways to protect consumers from high fuel prices and in creating economic development for rural communities.

HARNESSING THE WIND

The nation's "wind belt" blows across an area stretching from Texas to Minnesota to the Pacific Northwest and down through parts of the Southwest. Wind in North Dakota and South Dakota alone is so great that, theoretically, it could generate enough electricity to power the entire nation. Large-scale, commercial wind farms are operating in 22 states, and dozens of new projects are planned. California, Colorado, Iowa, Kansas, Minnesota, Oregon, Texas, Washington and Wyoming lead the way. Projects in New York, Pennsylvania and Vermont are tapping wind resources in the East. The capacity of the nation's wind power plants doubled from 1999 to 2001 (to nearly 4,300 megawatts), but they still produce only a very small amount of U. S. energy

The expansion of wind power has been a boon to struggling farmers and ranchers who can get annual royalty payments of between $1,500 and $2,500 for each turbine placed on their property. However the amount depends on the strength of the wind. Word of these lease agreements is spreading throughout many rural communities. Last year, the North Dakota State Energy Office held a series of meetings that focused on wind power and economic development. "In each town, the crowds got larger and larger," says Representative Scot Kelsh of Fargo. "Farmers are economically depressed, and this opportunity is good news to them."

Willert suggests proceeding with caution, though, when developers come knocking. "Many landowners in Minnesota entered poor lease agreements because these are relatively new types of land leases. Landowners should organize, share information and get everything in writing. They have a lot to lose if they don't," he warns.

Large, commercial wind farms can generate a lot of property tax revenue for counties, too. The National Wind Power Site in west Texas annually generates around $400,000 for the county, plus an additional $100,000 for schools throughout the state. In its first year of operation, the Foote Creek Rim Project in southern Wyoming generated $480,000 in property taxes for Carbon County. In Minnesota, a 155 megawatt project provided Lincoln County with $721,000, while Pipestone County received $532,000 from a 113 megawatt plant in 2000.

CONSUMER DEMAND

"The economic development that wind power is bringing to some rural areas is exciting, but wind is also attractive to the general public," says Representative Tom Sloan of Kansas. "Electricity customers are demanding it because they see wind power not only as a free energy resource, but they also like the fact that it's free of pollutants," he says.

Electric utilities in nearly 30 states now offer customers the option to purchase "green power," that is, electricity generated using renewable resources. This electricity is typically sold in blocks of 100...