Clean Line's REALLY Bad Couple-a Months...

In what is shaping up to be an incredibly rough couple months for Clean Line Energy Partners, several major blows have been dealt to the speculative development company:

Arkansas Full Congressional Delegation Comes Out Swinging

1) Arkansas' Full Federal Delegation Re-Introduces the APPROVAL Act (03/06/17)

On Monday afternoon, Senators John Boozman and Tom Cotton, along with Representatives Steve Womack, Bruce Westerman, Rick Crawford, and French Hill, re-filed S.529, the Assuring Private Property Rights Over Vast Access to Land ("APPROVAL") Act. The Act would amend Section 1222 of the 2005 Energy Policy Act to allow a state's governor and public service commission chair the opportunity to reject a federal transmission project if they don't feel like the project is in their state's best interest.

2) Arkansas' Delegation Sends Opposition Letter to Secretary Perry (03/07/17)

Alison wrote about this earlier, so I will just leave the letter here for everyone to see. It's a beauty.

3) Senator Boozman Makes Comments on Talk Business Arkansas (3/12/17)

Senator Boozman made comments during an interview with Talk Business Arkansas' Roby Brock further explaining the delegation's position that the use of Section 1222 of the 2005 EPAct by Clean Line is inappropriate:

In his comments, Mr. Boozman also brought further doubt about need for Clean Line's "product" at Tennessee Valley Authority (We know, Mr. Skelly, this is "bigger than TVA," we know. Whatever.), which brings us to:

Things Don't Look Great for Clean Line at TVA

1) TVA Winter Board Meeting (02/16/17)

It all started at TVA's February 16 board meeting. As you may have read in our January 2017 update, Clean Line and a couple environmental groups have been lobbying the Tennessee Valley Authority to sign a contract for a sizable chunk of wind energy from the Oklahoma panhandle and use Clean Line's proposed Plains and Eastern transmission line to deliver it to them. We explained to you that, if TVA were to sign a contract, the prime time to have done so would have been by December 31, 2016. That date has come and gone, and there was no publicly available contract on January 1, and as of today there still is not.

In past TVA board meetings (specifically August 2016 and November 2016), Clean Line sent their revolving door DOE star, Jimmy Glotfelty, to lobby (*read - "beg") TVA to make a commitment to use their transmission line. At the most recent board meeting held February 16, however, there was a specific lack of anyone representing Clean Line. The only person that showed up (and, she always does) to lobby for them was Chris Lunghino of the Southern Alliance for Clean Energy.

Why do we say that things don't look good for Clean Line at TVA? We have a couple key pieces of evidence. The first involves a presentation Mr. Bill Johnson, President and CEO of TVA, gave during his update at the board meeting. Take a look at the following slide:

Do you see what I see? If not, look a little closer... specifically at the amount of wind and solar energy TVA receives in 2017, and is projected to receive in 2026. They remain unchanged at 3%. What does that mean? Well, it would appear that it means TVA has no plans to purchase capacity for a large chunk of wind energy between now and 2026. You can infer from that what you will. Again, we know, Mr. Skelly, this project is "bigger than TVA." But, where are the other customers? We reported earlier that Georgia Power (GP) is likely out for Clean Line, and that still stands. Georgia Power is only allowed to contract 300 mW of wind power through its REDI program, and the in-service dates for GP's don't mesh with Clean Line's fantasy in-service date.

2) Senator Alexander (R-TN) Reaffirms TVA Doubts on the Senate Floor (03/22/17)

It must be really difficult for Clean Line and its' investors to see the senior senator from Tennessee say this on the Senate floor:

Senator Alexander: If you are watching, we would like to give our thanks to you for making these comments!

Oklahoma State Legislature Moving to Eliminate Wind Tax Credits

1) Oklahoma House of Representatives Passes Legislation to Eliminate State-Level Production Tax Credit for Wind Energy (03/10/17)

As we reported in our January update, the Oklahoma legislature is apparently serious about attempting to fix their nearly $900 million budget deficit. The Oklahoma House made the first move to eliminate early the state "Zero Emissions Credit" for wind energy. Without going into many details, the credit amounts to millions of dollars per year that come out of the state's coffers (paid for by Oklahoma taxpayers) to support companies that are mostly out-of-state (or country, in some instances).

Oklahoma gets a decent-sized chunk of its electricity from wind energy produced in state. Much of the energy produced by newer generators is exported out of the state, therefore Oklahomans are subsidizing wind energy companies for producing energy that largely has little-to-no benefit to the citizens of their own state... aside from the royalties landowners receive for voluntarily hosting the turbines on their property.

Meanwhile, Clean Line would like to potentially use (for the first time) federal eminent domain to force a swath 720 miles long of Oklahoma and Arkansas landowners to give up their property rights to construct its' for-profit transmission venture that could also require Oklahoma taxpayers to subsidize an additional ~2,000 wind turbines with zero in-state benefit... again, except to the landowners who voluntarily host the turbines on their property.

Does that seem fair to you? To me, it doesn't.

2) Oklahoma Senate Panel Approves Rolling Back Wind Tax Credit (03/29/17)

According to a report released today:

OKLAHOMA CITY – Legislation that rolls back a state tax credit for the wind energy industry has been approved by an Oklahoma Senate panel. 

The Senate Committee on Appropriations on Wednesday voted 34-6 for the House-passed measure and sent it to the full Senate for consideration. 

The bill modifies the tax credit for electricity generated by zero-emission facilities like wind turbines. It says facilities must be in operation by July 1 in order to qualify for the credit, instead of the current deadline of Jan. 1, 2021. 

Gov. Mary Fallin has proposed eliminating the credit to increase revenue amid a projected $868 million budget shortfall next year. The tax credit will cost $40 million this year and will average $60 million a year over the next 15 years.

The legislation appears to be poised to pass. We will see if the Oklahoma Senate is as serious about it as the House in the coming days. If the Senate passes the bill, it will be delivered to Governor Fallon for signature.

3) Mario Hurtado says: "No Big Deal" to Losing Oklahoma PTC (03/29/17)

In his typical blustery and arrogant (disconnected?) fashion, Clean Line's Mario Hurtado said the following in a recent article:

Hurtado said HB 2298 should have little impact on a $2 billion high-voltage transmission line that will carry wind energy across Oklahoma and Arkansas to Mid-South and Southeast markets. The Plains and Eastern Clean Line transmission line, a 700-mile project that has been in the works since 2010, will have the capacity to deliver 3,500 megawatts of wind-generated electricity from the Oklahoma and Texas panhandles. 

Terminating the tax credits this year, if the bill becomes law, could have an impact on where those wind farms are sited. Hurtado said the companies that will build the more than 2,000 wind turbines needed to feed current through Clean Line’s transmission line base siting decisions on a number of factors, and tax policy is one of those factors. 

“It may change the amount of wind energy that connects to us ... (from) Texas versus Oklahoma — the Oklahoma Panhandle is not that wide (and) the wind doesn’t pay attention to state lines,” Hurtado said. “Unfortunately, that would mean less investment in Oklahoma and the school districts there — that could be a change, and that is certainly something we have made people aware of.”

There you have it, Oklahoma. Whatever, Mario.

4) Mario Hurtado says: "Foundations for generators are being dug and poured in the Oklahoma panhandle right now" (3/25/17)

In another recent article that is full of bluster likely targeted at the Missouri Public Service Commission and Clean Line's investors, Hurtado said the following:

Foundations for generators are being dug and poured in the Oklahoma panhandle right now, Hurtado said. General Electric — which will build converter stations located near Guymon, in Arkansas and near Memphis, Tenn. — has done a lot of engineering work ahead of building the stations, he said.

Pictures or it didn't happen, Mario. Today (03/29/17), you said that if the Oklahoma legislature repeals the in-state PTC, wind developers will just build generators to energize your line in Texas instead of in Oklahoma.

But, just four days ago, you said "foundations for generators are being dug and poured in the Oklahoma panhandle right now." What gives, Mario?

My analysis? Foundations for wind generators are most definitely being "dug and poured" in the Oklahoma panhandle, but they're not being "dug and poured" to supply Clean Line's proposed transmission line. For Mario to imply otherwise is disingenuous, deceptive, and pretty desperate, if you ask me.

You have to have customers for all that stuff to happen, Mario. To date, Clean Line has yet to release a single, legally bound, contractual customer on either the generation or end-use side of its proposed speculative transmission line. Unless and until a sizeable portion of their capacity is subscribed, everything Hurtado and Skelly say is bluster.

Things Don't Look Super Great for Clean Line in Missouri

1) Hearings Held on Clean Line's (latest) Grain Belt Express Application

As you may know, Clean Line had its week-long round of evidentiary hearings at the Missouri Public Service Commission last week. If you're interested about how the hearings went, I will leave that explanation to my friend, Keryn Newman. She wrote an excellent blog post summarizing the events.

2) Neighbors United Scores Victory That Could Dash Clean Line's Hopes in Missouri

In a nutshell, Staff at the MOPSC recommended that: 1) Commissioners deny Clean Line's application, or 2) Commissioners condition Clean Line's CCN with the requirement that they receive assent from all impacted counties. I'll leave you with Keryn's blog post about this decision, which explains how it could affect Clean Line's proposed "Grain Belt Express" line.

Due to State Action, Clean Line's "Rock Island" Project is Effectively Dead

According to a recent article:

House File 603, which Rep. Bobby Kaufmann, R-Wilton, called a “long-awaited bill protecting private property rights,” was approved by the House 93-0. 

The bill addresses what he labeled the state’s “largest blight,” the Rock Island Clean Line, an electric transmission line that would affect 1,500 Iowa landowners, as well the development of a reservoir in Clarke County and property owners displaced by Department of Transportation projects. 

“It should be hard to condemn private property, it should not be possible to condemn private property for personal profit, it should be illegal to condemn private property for anything other than public use,” Kaufmann said.

We're with you, Representative Kaufmann. Iowa landowners are lucky to have you.

In Closing

This is already far too long. So if you have made it this far, I really appreciate you reading it. I hope it has been informative and maybe, just maybe, it gives you a little bit of hope in what can feel like a helpless situation.

I just have to close by asking Clean Line's investors: When does enough become enough for you guys? When do you come to the realization that someone else has spent upwards of $200 million of your money and, after nearly a decade, those people haven't produced a single cent of revenue in return for you? And there's really no return in sight, is there? When do you say to yourselves: "We've harassed these people enough. It's time to throw in the towel"?

Maybe that's why you're holding on for so long. I get it. You've spent a lot of money. But, it doesn't make it right for the harassment to continue.

I think the time is (or should be) fast approaching. If you have any sense of decency about yourselves, you should realize how many thousands of people you have negatively affected for the last many years. Have you no conscience? Do you think things are just magically going to get better?

It is time for you to pull the plug.

When the Pictures Speak for Themselves...

Call to Action

© Copyright 2015

**CALL TO ACTION: HELP PROTECT YOUR FRIENDS AND NEIGHBORS**

Wind power has a significant place in the new energy economy. Advances in turbine and offshore technology mean that it will soon be possible to harness greater power from wind closer to East Coast, Southeast, and load centers.

The Department of Energy is determining whether to enter into a partnership with Clean Line Energy Partners, LLC, which would enable the Southwest Power Administration to condemn the property of individual citizens on behalf of Clean Line using federal eminent domain. This, in spite of the fact that Clean Line was denied public utility status by the State of Arkansas.

We need good, permanent jobs in our state, not temporary jobs that come at the expense of our neighbors' rights. We need your help to protect your friends and ensure that projects proposed to “benefit” our state don't hurt the people who make it great.

Tell your Arkansas representatives and the Department of Energy that eminent domain for private gain is not appropriate for our country! 

Here are a couple things you can do right now to help:

1. Make a public comment on the Draft Environmental Impact Statement that begins with “I oppose this project because…”
You can submit your comment here (make sure to check the box to receive email confirmation):

http://www.plainsandeasterneis.com/contact-us/comment-form.html

2. Contact your Congressmen and Senators and tell them that Arkansans deserve to have a say in what happens to the land they’ve worked for and that eminent domain for private gain is WRONG! You can find their contact information here:

http://votesmart.org/officials/AR/C/arkansas-congressional#.VMUhQEc7uSo

3. Sign and share our petition:

https://www.change.org/p/dr-ernest-moniz-protect-private-landowners-from-federal-eminent-domain-abuse-by-clean-line-energy-partners-llc

You can do even more! Just last week we met a couple landowners who still didn't know they were on the route. Please like and share this post with your friends and ask them to share as well. No one should find out they're on the route after it's too late to make their feelings on this matter heard by their government! The deadline for submitting comments and letters of opposition is currently April 20, 2015.

Thank you for taking a stand for your fellow Arkansans. We are always here to listen to your stories and offer community among other affected landowners and members of the public.

Like us on Facebook at: https://www.facebook.com/pages/Arkansas-Citizens-Against-Plains-and-Eastern-Clean-Line/1397073527241617

Or join a BLOCK group:
https://www.facebook.com/groups/blockcleanlinepope/
https://www.facebook.com/groups/BlockPECLOK/
https://www.facebook.com/groups/642766385769035/

Points to Remember:

• Arkansas needs new sources of clean energy that are locally and responsibly generated, utilize the newest technology, do not forcibly take land from Arkansans, do not involve clear-cutting 8,000 acres, and are capable of supporting local, permanent jobs.

• The proposed delivery station in central Arkansas is not a done deal. It is an “alternative” proposed in the draft EIS by the Department of Energy, not by Clean Line. Clean Line is under no obligation to build it at this time.

• New investment in Arkansas is important. However, it is wrong to imply that such investment is only possible at the expense of private property rights.

• This project has already received tax abatement in two Tennessee counties for eleven years. A sister project, the Grain Belt Express, has also received a ten year abatement in Kansas. Furthermore, two Oklahoma legislators filed a bill to change tax incentives for wind farms in that state due to the burgeoning burden developments have placed on the state budget. Billionaire investor Warren Buffet has said, “…on wind energy, we get a tax credit if we build a lot of wind farms. That's the only reason to build them. They don't make sense without the tax credit."

• Both the siting and development of the route and Draft Environmental Impact Statement were conducted without adequate landowner input as evidenced by recent quorum court resolutions against the line, as well as a resolution by the Tribal Council of the Cherokee Nation. In fact, the length of the comment period itself was recently challenged as being insufficient by the entire Arkansas Congressional Delegation along with Senator Lamar Alexander of Tennessee.

• Clean Line was rejected as a public utility by the State of Arkansas. The proposed partnership with the Department of Energy using an untested law in defiance of that decision is an example of federal overreach that will undermine years of careful planning by RTO’s for wind and renewables integration.

• It is absolutely inappropriate for the federal government to condemn taxpayers’ property on behalf of a private, merchant transmission company with no history of successful development or contractually obligated end users.

• Forcing landowners to accept fair market payments for a perpetual easement on a risky project is unconscionable. Clean Line should have to negotiate all easements without the advantage of eminent domain.

A schedule for public hearings can be found here:
http://www.plainsandeasterneis.com/nepa-process/public-involvement.html

The Draft EIS can be found here:
http://www.plainsandeasterneis.com/draft-eis.html

An interactive map of the proposed and alternate routes can be found here: 
http://www.plainsandeasterneis.com/interactive-map.html

Voices from the Route: Brandon's Story

Brandon's brother on horseback

We’ll be doing a post very soon on our awesome Arkansas Delegation, along with Senator Lamar Alexander, and their call to extend the comment period on the EIS. Right now, we really just want to bring you another voice from the route…

On Thursday, President Obama gave his sixth State of the Union speech. Predictably, Clean Line took a snippet on energy:

“America is number one in ‪windpower.”

…and added their own footnote on their Facebook page:

“We need long-haul transmission lines to move America’s vast renewable energy resources to market.”

Now, I know the POTUS talked a bit about infrastructure, but I don’t recall him saying anything quite like that… He did say this though:

“And as a new generation of veterans comes home, we owe them every opportunity to live the American Dream they helped defend.”

So, this is Brandon Bishop from Oklahoma:

"Here’s my story. I didn’t have a lot of direction in my life when I was younger. I joined the Marine Corps when I was 19. I was just trying to get a start. I figured if nothing else, after serving at least I’d have the opportunity to get a better job. Got married two months before I joined. It was hard on us, but we made it. I served for four years and went to Desert Storm.

I don’t feel entitled, but I feel like I’ve done a lot of things that others haven’t. I’ve served my country, worked hard, paid my taxes. I’m a disabled veteran and a productive citizen.

They’re wanting to run that line right down the center of the land where I want to build.  I’m not a rich man, but I’ve got that land out there…That was passed down to me. That’s what we do. I’m setting my kids up for success. I’ve been setting this up for years and years so that they would have something... A place.  We were going to build a retirement home there. A little log home.  My daughter grew up here. She’s really fond of that land, she’s got a lot of memories. She and her grandfather worked horses there.

These people (Clean Line) don’t know anything about me. They want to run through my property and destroy my hopes and dreams. I don’t have any ill intent for anybody, but it’s appalling to me… for them not even give me a say-so. It’s legalized thievery to me. The rich get richer and the poor get poorer.

So many people anymore, they sell out… but we just want to run the cattle and cut the hay, appreciate the beauty of the land. If we got another 200 acre tract of land, what’s to stop them from doing the same thing there? To me it’s abusive to the American people.

How much is enough? Before the people have had enough of it? All I’m telling you is my honest opinion.  And even if I wasn’t on the line, I’d feel the same way. I’d stand up for my neighbors the way I’d want them to stand up for me."