Un-Answered Questions - Wind 101
1. If a wind farm is expected to function for 30-60 years, what happens after that time?
The turbine company could decommission, or perhaps install newer turbine technology as the industry continues to evolve.
2. What happens if the wind company goes bankrupt?
The county ordinance and permitting process should have a requirement for decommissioning bonds, which would allow the community to put the property back to agricultural land. There are too, several mergers and acquisitions by many wind development companies globally. If the project was still usable, a good chance there would be a new company ready to purchase and take over the wind farm. Consult with an attorney have a clear statement if your lease agreement with regard to how you as a landowner could be best protected.
3. How much local hiring would be done and how long will the jobs last?
For Operations and Maintenance jobs, there are approximately 6 people for every 100 MegaWatt…or about 1 person per 10 turbines. The startup phase during construction of a project requires more jobs than when the project is up and operational. These jobs would likely remain as long as the turbines are in commission. The nature of wind energy jobs offer more stability as they are not prone to picking up and move overseas like some manufacturing jobs.
4. Would it benefit the county to negotiate a percentage of power generated per unit or wind farm as a whole, to stay in the county?
Without a Renewable Electricity Standard mandated to the utility companies by the state of Indiana, they are not required to purchase wind generated power by state law at this time. The local utility companies would likely be best able to answer this question, and some may indeed are currently purchasing renewable power on a voluntary basis. A local utility may be interested in purchasing power from wind farms as a result of additional power needed during peak demand time like the summer months for air conditioning, etc.
5. What are the actual long-term jobs created once the turbines are on-line?
See question 3 for the direct jobs created. If you look at induced and indirect impact jobs, the numbers will be higher as a result of increased revenue brought to the community.
6. What is the smallest piece of property a wind company will consider?
It takes 1,000 to 1,500 feet setbacks from buildings, residences, other obstructions for a developer to consider property for a turbine, so with that requirement by the county in the ordinance, approximately 60 acres of property provided a topography free and clear of obstructions would be required.
7. Why do wind companies offer payment to land owners or resident payments?
It provides benefits for those who allow their land to be used by the wind project.
8. What does “user friendly” regulatory regime mean?
It means that Indiana’s environmental and utility regulations are easy to understand and it is relatively easy to navigate through the permitting process of each agency. Further, it means that more power is given to local governments to decide on how best to regulate wind farms.
9. How far does a home need to be to avoid the shadow flicker effect of the blades?
A setback for shadow flicker for either sun or moon light is relative to the topography and where the home is in relation to the setting or rising sun, etc. A shadow flicker evaluation should be required by the wind developer where residences are located nearby, and a typical limit set in most cases is around 30 hours per year when a home is subject to flicker.
10. How close downwind can towers be productively placed?
Each wind farm developer mathematically determines where to locate each turbine based upon the wind resource profile of the farm’s location. Each turbine does impact other turbines “downwind”. Indiana University is working with one of the developers in NW Indiana to study turbine impacts on the wind resource.
11. In your presentation you reference MW (megawatts), should your data reflect MWH to show the actual energy generated?
MW is used when referring to the capacity of the technology to perform. MWH is used when discussing the actual production.
12. Will the value of the turbines depreciate over time, if so how fast and by what percentage?
Yes, the turbines are treated as personal property so they are subject to depreciation. Each company/developer can choose a different allowable depreciation method, so the depreciation percentages and the number of years for the depreciation schedule can vary. The company will use the same depreciation method as they use for their federal tax return filings. The company self reports the depreciation to the State utilizing Form UD 45, which is the state utility form. The State then reviews and provides information back to the County for assessment purposes. I believe the longest depreciation schedule would be a 20-year straight-line depreciation schedule which in essence would be 5% depreciation each year. I believe the shortest depreciation schedule would be a 5-Year DDB MACRS schedule which follows the following schedule – 20% in year 1, 32% in year 2, 19.2% in year 3, 11.52% in years 4 & 5, and 5.76% in year 6. Also in Indiana, they are eligible for an additional 60% ‘credit for gross additions’ in year 1. Regardless of the depreciation method utilized, the assessment will be subject to the 30% floor – which for example in the 5-Year DDB MACRS method described above, would be reached in year 3.
13. Could taxes from a wind farm be used to pay teachers under current IN law?
Currently, funds to pay teachers comes from the State. As of 2008, there is no longer a local property tax levy for the schools’ general fund, which is the fund from which most teachers are paid. The exception to this would be if a school were to pursue and be successful in a referendum for an additional operating levy – which would then be a local property tax. In that case, there would be a maximum local property tax levy the school could generate. A portion of the taxes from a wind farm would help fund that local levy. However, it would not be additional levy, it would mean that the maximum levy that can be generated would come at a lower tax rate for all taxpayers in that taxing district(s).
14. Who would pay for the needed upgrades to the transmission lines?
It is not foregone conclusion that upgrades to the transmission lines would be required – beyond my area of expertise or knowledge for Whitley County. However, it is my opinion that any infrastructure requirements to facilitate a wind farm would be borne by the wind farm developer or the power company – not the County.
The foregoing questions and answers are for informational purposes only and are not necessarily the opinion of the Whitley County EDC or the Chamber of Commerce. For further details or information regarding the answers, please contact the speakers directly.