Duke Energys guilty plea for killing protected birds is an ominous sign for renewable energy.
The Justice Department announced late last week that a subsidiary of Duke Energy DUK -0.06% has agreed to pay $1 million for killing golden eagles and other federally protected birds at two of the companys wind projects in Wyoming. The guilty plea was a long-overdue victory for the rule of law and a sign that green energy might be going out of vogue.
As Justice noted in its news release, this is the first time a case has been brought against a wind company for violating the Migratory Bird Treaty Act. The 1918 law makes it a federal crime to kill any bird of more than 1,000 different species. Over the past few decades, federal authorities have brought hundreds of cases against oil and gas companies for killing birds, while the wind industry has enjoyed a de facto exemption. By bringing criminal charges against Duke for killing 14 golden eagles and 149 other protected birds, Justice has ended the legal double standard on enforcement.
While it is heartening to see the Obama administration finally following the law, Justices decision might also indicate that the green bubble is about to burst.
Consider data from the American Wind Energy Association, an industry group. In 2012, when federal subsidies were flowing, wind companies installed a record 13,131 megawatts of new capacity—about 6,500 turbines. But installations have tanked this year amid uncertainty over the extension of the federal production tax credit, which offers companies a hefty 2.3 cent per kilowatt-hour subsidy. During the first three quarters of 2013, the domestic wind industry installed a mere 70.6 megawatts of new capacity. Wind-industry lobbyists are desperately trying to get the production tax credit extended again before it expires at the end of the year. The Duke case wont endear them to the public.
The renewable-energy craze may also lose its lustre as the public discovers how expensive "green jobs" are. Texas is the top wind-energy state in the nation. But in January Texas Comptroller Susan Combs reported that each wind-related job in the Lone Star State is costing taxpayers $1.75 million.
There is also a public backlash against ruining scenic countryside with giant wind turbines. The outrage spans from the United Kingdom to Wisconsin. Last year, to cite just one example, about five dozen landowners in Herkimer County, New York filed a lawsuit against the owners of the Hardscrabble Wind Power Project. Their many complaints included reduced property values and excessive noise. To judge from news reports, suburban and rural residents dont want 130-meter-tall windmills in their neighborhoods. They also dont want the constant noise the turbines produce, or the relentless blink of the turbines red lights all night, every night.
Definitive proof that the green energy bubble has burst will come when the government brings more legal action against renewable companies for violating U.S. law. That may be happening: The Fish and Wildlife Service has 18 active investigations into bird kills at various wind-energy projects. Seven have been referred to Justice for prosecution.
And it may not be limited to wind energy. Last week, Chris Clarke of the California public television station KCET reported that the Ivanpah Solar Electric Generating System, a new solar-thermal plant in the Mojave Desert, killed 52 birds in October. Many of the birds were apparently killed by the intense heat generated by the projects mirrors. It appears that the project is attracting birds, which means the deaths may increase when the facility reaches capacity. Mr. Clarke went on to opine that the solar-thermal projects now being built in the California desert "could well depress bird populations from the Arctic to the Panama Canal."
Apologists for wind and solar power insist that wind turbines only kill a few birds while climate change is the real threat. Last month, in a letter to The Wall Street Journal, an official from the American Wind Energy Association said that wind energy "enables the U.S. to develop a diverse energy portfolio better equipped to fight climate change—the number one threat to wildlife, according to the U.S. Fish and Wildlife Service."
Perhaps thats true. But everyone is threatened when the law is not applied equally, and so the Justice Department should continue ruffling the feathers of lawbreakers in the green-energy business.
Original Source: http://online.wsj.com/news/articles/SB10001424052702304465604579218260583305226