Law, College of
Nebraska Law Bulletin (Selected Issues)
Date of this Version
6-16-2024
Document Type
Article
Citation
Nebraska Law Bulletin (June 14, 2024)
Abstract
In 2014 a study for the Nebraska Power Review Board noted: "In the near term, renewable generation developers in Nebraska face competitive disadvantages that include: (a) lower financial incentives from the state; (b) lower wholesale power prices due to transmission congestion; (c) [and] the perception of a more burdensome permitting and regulatory process." Today, these issues persist. State financial incentives are still lacking, transmission congestion has only worsened, and zoning and permitting laws remain burdensome. Through the recommendations of this paper, however, it may be possible to begin addressing these issues.
Nebraska can see more wind development through the Legislature setting zero-emission energy quotas and passing statewide zoning and permitting laws, the SPP continuing to address the multiyear backlog of interconnection studies, and the federal government providing grant funding to the State to build wind turbines and transmission lines.
At the state level, the Legislature should aggressively pursue cleaner, cheaper energy to not only decrease CO2 emissions but also ratepayers’ bills. The Legislature, with its large budget, is uniquely positioned to fund this transition because new wind projects typically have high upfront costs that public power entities and private developers may be unwilling or unable to cover. Suppose the Legislature can pass legislation prioritizing wind power through a Clean Energy Standard, direct funding, or by creating statewide zoning laws for wind turbines. In that case, Nebraska will likely see rapid construction of new wind projects. In this way, unless Nebraska can offer incentives and remove barriers to entry, developers who have experience building wind energy in other states will continue to build where they are familiar. At the regional level, the Southwest Power Pool's power generator approval process was not working. While it will take time to determine if the 2022 changes solve the backlog, the SPP should continue developing ways to speed up the interconnection queue. Otherwise, developers will continue to wait years to find out the actual cost of their projects and wind energy production will not increase in Nebraska.
Finally, it is recommended the federal government more precisely fund a transition to wind power in Nebraska. While the Inflation Reduction Act shows a serious commitment to wind power nationally, to successfully assist Nebraska's public power structure, federal funding for wind power and transmission lines should be through grants, not tax credits.
Today renewable sources generate more electricity than coal or nuclear power in the United States, yet Nebraska lags drastically behind.Nebraska can catch up, but it will require a combination of solutions at the local, state, regional, and federal levels. If it does catch up, Nebraska will not only help its own residents, but demonstrate more generally that publicly managed and developed wind power is a great way to offer cheap, dependable power to all.
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