Author Archives Laura Arnold

AdvanceIndiana: Sunlight Needs to be Shined on Airport; IBJ: Solar farm is a tax; ‘Green’ funding is losing glow

Posted by Laura Arnold  /   October 04, 2011  /   Posted in Feed-in Tariffs (FiT), IPL Rate REP, Uncategorized  /   No Comments

Dear IndianaDG Readers:

It looks like the renewable energy naysayers want to tarnish the recent announcement about the Indianapolis Airport Authority (IAA) 10 MW solar farm using the Indianapolis Power and Light (IPL) Rate REP or feed-in tariff. Clearly, readers of this blog know that I don't agree with the sentiments expressed by the Advance Indiana blog nor the IBJ Letter to the Editor (LTE) or IBJ Editorial reprinted below BUT I think you need to know what is being said out there. We need someone to take on these folks. Any volunteers?

Laura Ann Arnold

http://advanceindiana.blogspot.com/2011/10/sunlight-needs-to-be-shined-on-airport.html

Monday, October 03, 2011

Sunlight Needs To Be Shined On Airport Solar Farm Project

Indianapolis Airport Authority officials have signed on to the state's largest solar farm project to date in a deal that has been cloaked in secrecy. On September 20, 2011, IAA announced a long-term, $35 to $45 million solar farm project on airport property adjacent to I-70 had been awarded to ET Energy Solutions, LLC, a joint venture involving three local firms, a little more than four months after it issued an RFP seeking proposals for the project on May 11. RFP responders were given just a month to respond to the 23-page RFP document. "No public funds or airport costs are anticipated to be involved with the project" according to a press release put out announcing the deal; however, it is unclear what, if any, public benefit will come from the project.

The joint venture comprised of three locally-based companies, including Telamon, Johnson-Melloh Solutions and Schmidt Associates, will presumably rely on generous government tax credits and its own private financing to build the solar farm that is expected to generate 15 million kilowatt hours of electric energy a year, enough to power approximately 1,200 homes. The solar panel technology being deployed at the solar firm is manufactured by a Japanese-based company, Sanyo. It will involve 41,000 solar panels spread over 60 acres. Interestingly, none of the joint venture partners has any experience developing and operating solar farms despite the RFP's requirement that the responders provide their qualifications for developing and operating solar farms with a preference afforded to responders with experience with "larger solar farm applications." Indianapolis Power & Light will purchase the electric power generated by the solar farm under a power purchase agreement.

The press release put out by the airport says nothing about what the terms of the land lease for the joint venture are to operate the solar farm on airport property for an initial period of up to 30 years. The RFP indicates that the successful respondent would be required to enter into a land lease with the airport and pay an unspecified amount of rent to the airport annually, but the press release makes no mention of any rent payments. A review of the airport authority's board agenda packet for its September meeting that took place prior to the announcement makes absolutely no mention of any approval action taken on the solar farm project, nor is it mentioned in the board minutes or board agenda packets for any of IAA's board meetings since April.

The public learns more about the project in a letter to the IBJ's editor authored by Stephen Woodrow in the publication's most recent edition than the airport's press release or any media reports on the deal. Woodrow's letter calls the solar farm a "tax" on IPL's ratepayers. According to his letter, IPL will purchase the electric power from the solar farm based on the Renewable Energy Production tariff approved by the IURC for IPL, which is 20 cents per kilowatt hour. "This represents a premium of eight times over IPL's published cost of 2.5 cents per kilowatt hour for the production of an incremental kilowatt hour of power," Woodrow claims. "Most noteworthy, the tariff approved by the IURC further provides for the cost for this inefficient solar project to be allocated to and recovered from the basic rates paid by all IPL customers and not IPL shareholders," Woodrow adds.

Woodrow noted the irony that in the same edition of the IBJ where the lead editorial warned that alternative energy was "fraught with risk" and cautioned against government subsidies, the business newspaper provided "only cursory page 6 coverage of the Indianapolis Airport Authority's awarding of a contract to a private company to develop and operate a '$35 million to $45 million' solar farm." Woodrow challenges the contention that no public funds are to be used for the project. "The reality is that this project is to be 100-percent funded by the 'public' in the form of captive and unrepresented ratepayers of the Indianapolis Power & Light utility monopoly," he contends.

According to responses to questions tendered during the little more than 30-day response period, there was only one meeting with potential responders conducted by airport officials on May 25, 2011 and all written questions had to be submitted by June 7. Airport officials declined the opportunity to meet further on-site with potential respondents in early June prior to the submission of proposals and rejected a request to extend the due date for proposals beyond June 16. It is unclear how many responses the airport received. The press release makes no mention of how many responses the airport received to the RFP.

Posted by Gary R. Welsh at 9:39 PM

Solar farm is a tax

Indianapolis Business Journal (IBJ) http://www.ibj.com/solar-farm-is-a-tax/PARAMS/article/29844

Letter to the editor

October 1, 2011

The fundamental economic principle behind this project is outrageous and unjustifiable payments to be made by IPL to the airport (and by extension, the project developer/operator) under its “Renewable Energy Production” tariff.

It is ironic that in the same [Sept. 26] issue where the lead editorial warns that alternative energy is “fraught with risk” and cautions against government subsidies, IBJ provides only cursory page 6 coverage of the Indianapolis Airport Authority’s awarding of a contract to a private company to develop and operate a “$35 million to $45 million” solar farm.

An earlier IBJ online story quoted the airport as saying “no public or airport funds are expected to be involved in the project.” The reality is that this project is to be 100-percent funded by the “public” in the form of the captive and unrepresented ratepayers of the Indianapolis Power & Light utility monopoly.

The fundamental economic principle behind this project is outrageous and unjustifiable payments to be made by IPL to the airport (and by extension, the project developer/operator) under its “Renewable Energy Production” tariff. IPL’s tariff provides for a payment of 20 cents per kilowatt hour produced by solar projects of this type. This represents a premium of eight times over IPL’s published cost of 2.5 cents per kilowatt hour for the production of an incremental kilowatt hour of power.

Most noteworthy, the tariff approved by the Indiana Utility Regulatory Commission further provides for the cost for this inefficient solar project to be allocated to and recovered from the basic rates paid by all IPL customers and not IPL shareowners.

This scheme represents an unwarranted transfer of wealth from IPL ratepayers to the airport authority and the project developer/operator. Quite simply, it is taxation without representation.
__________

Stephen Woodrow
Indianapolis

 

IBJ EDITORIAL: 'Green' funding is losing glow

IBJ Staff http://www.ibj.com/editorial-green-funding-is-losing-glow/PARAMS/article/29713

September 24, 2011

Americans are an exuberant bunch. We fell head over heels for all things Internet a decade ago. And rather than learning our lesson when the bubble burst, we flocked to housing, only to see it suffer the same fate.

Is alternative energy the next big flop? That’s a timely question in the wake of the spectacular collapse of solar cell manufacturer Solyndra, which received $528 million in federal loans and then went bankrupt.

The same market forces that doomed that California company have cast uncertainty over Abound Solar, which received a $400 million federal loan guarantee last year. It planned to use some of the money to expand its solar-panel-making operation to the massive, unused Getrag transmission plant in Tipton, where it hoped to employ as many as 1,200.

We hope that works out, but there is cause for worry. While Abound uses a different technology from Solyndra, both firms are suffering from a plunge in prices caused by increased supply and lackluster demand.

Another “green” energy firm stoked with federal money—New York-based Ener1—also is ailing. The firm, which makes lithium-ion batteries for electric and hybrid vehicles, could lose its NASDAQ listing if its shares continue trading below $1.

The company received a $118 million federal energy grant, and said it hoped to boost central Indiana employment to 1,400. But that’s increasingly looking like wishful thinking.

The company’s plans to collect even more federal money also are looking dicey. In a regulatory filing, Ener1 said it had applied for $290 million in low-interest loans from the U.S. Department of Energy.

As Wunderlich Securities said in a report last month, “We all have to rethink what is possible now that the auto market is not widely embracing lithium-ion drivetrains. We expect [Ener1] will carefully resize the business model to match existing opportunity.”

The lesson here isn’t for everyone to steer clear of alternative energy. Eventually, there are sure to be many big winners in the sector. But financial backers need a greater appreciation for the inherent risks in emerging industries. That’s especially true of the cash-strapped federal government, which can ill-afford to have billions in loan guarantees and grants go for naught.

Fortunately, not all units of government got caught up in green euphoria. Indiana’s incentive packages were modest compared with those doled out by other states, especially Michigan. And the bulk were performance-based—meaning recipients cashed in only if the promised jobs materialized.

In an interview with IBJ in June 2009, at the height of green mania, Mitch Roob, then Indiana’s commerce chief, urged caution about the fledgling lithium-ion battery industry—a view that now seems prescient.

“I think the industry, relatively speaking, is in an immature state,” he said. “Throwing enormous amounts of money at fledgling organizations probably isn’t the greatest idea.”•

__________

To comment on this editorial, write to ibjedit@ibj.com.

West Central School Corporation’s Wind Project a First for NIPSCO Feed-in-Tariff Program

Posted by Laura Arnold  /   October 03, 2011  /   Posted in Feed-in Tariffs (FiT), Northern Indiana Public Service Company (NIPSCO), Uncategorized  /   No Comments

(Source: MARKETWIRE)trackingWest Central School Corporation  (WCSC) representatives and student leaders will celebrate the start of  construction on their school's utility-grade wind turbine project with a  ceremonial breaking of the ground Friday morning, September 30th, at 9:30 am EDT  at the school campus.

WCSC will be the first public school  corporation in Indiana to utilize the Northern Indiana Public Service Company  (NIPSCO) Feed-in-Tariff program for renewable energy
generation. The project will include one 321-foot high, 900 kW, three-blade  PowerWind turbine on school property, with Performance Services serving as the  design builder. The project is designed to pay for itself and at the same time  significantly reduce the cost of energy at the schools. In doing so, the  corporation hopes to be able to maintain the existing tax rate. Over the 25-year  life of the project, net revenue is expected to exceed $2.9 million after all  project related costs.

"This is a great event for the West Central School  Corporation and the school community. We are very excited about the opportunity  to work with Performance Services and NIPSCO to make this first of its kind  project become a reality," said Charles Mellon, superintendent.

An essential component of the wind project  is a renewable energy curriculum. Lessons plans, a K-12 curriculum map, and  unique learning opportunities will be made available for K-12 students. This  project will become a real-world lab in which WCSC students will have the  opportunity to learn and explore renewable energy first hand.

Tim Thoman, President of Performance  Services, noted, "We are pleased to have the opportunity to work with West  Central School Corporation on this important community wind project. Utilizing a  natural wind resource to support school funding is an innovative solution. This  wind project will also provide a unique learning experience for West Central  students with an integrated curriculum and enable them to model environmental  stewardship and sustainable practices to their community."

For more information about West Central  School Corporation, visit http://www.wcsc.k12.in.us/

Performance Services is an  Indianapolis-based design-build engineering company that specializes in  constructing and renovating schools and renovating universities to deliver
optimal learning environments through both the Guaranteed Energy Savings  Contract and Design-Build procurement methods. Innovative wind power and  geothermal systems are integral to the energy services portfolio. The company  has provided energy services to education for more than 13 years and currently  serves K-12, higher education and ealthcare markets and is the leading  qualified provider of guaranteed energy savings projects and ENERGY STAR labeled  schools in Indiana. To learn more, visit http://www.performanceservices.com .

CONTACT:
Arlene Gavin
Performance Services, Inc.
(317) 713-1750
Email Contact

SOURCE: Performance Services

Performance Services is a member of Indiana Distributed Energy Advocates.

Indianapolis Airport Announces ET Energy Solutions, LLC to develop 10 MW solar farm

Posted by Laura Arnold  /   September 21, 2011  /   Posted in IPL Rate REP  /   No Comments

A BIG CONGRATULATIONS TO ET ENERGY SOLUTIONS, LLC AND JOHNSON MELLOH FROM IDEA!

FOR IMMEDIATE RELEASE: Sept. 20, 2011

IAA Contact: Carlo Bertolini

317.487.5025 |cbertolini@indianapolisairport.com

Johnson-Melloh Solutions Contact: Pam Ingram

317.244.5993| pingram@johnsonmelloh.com

Schmidt Associates Contact: Katie Corson

317.263.6226| kcorson@schmidt-arch.com

Telamon Contact: Windi Hornsby

317.818.6888| info@telamon.com

Construction to begin on Indianapolis International Airport
solar farm

 

Local firms will play key part in creation of one of the largest airport solar farms in North America

 

INDIANAPOLIS– The Indianapolis Airport Authority (IAA) announced today that it has selected ET Energy Solutions, LLC to develop a solar farm onIndianapolisInternationalAirportproperty. The company is a joint venture (JV) between three locally based firms which bid on the project: Johnson-Melloh Solutions, Schmidt Associates, and Telamon Corporation. Telamon, a Minority Business Enterprise, is 50 percent owner of the JV.

Under the terms of the agreement, ET Energy Solutions will finance, design, construct, and operate the facility on land leased from the IAA. The local group will work in conjunction with SANYO Electric Group, a global leader in solar energy technology and development, which will provide panels for the project and assist with arranging financing.

Design and utility interconnection studies are already underway, and weather permitting, construction could begin as early as fourth quarter of 2011. The solar farm, which will be one of the largest airport-based solar farms inNorth America, is expected to become operational starting in mid-2012. The facility will include more than 41,000 solar panels, each capable of producing 280 watts at peak power production. The panels will be installed on ground-mounted racking systems that will fill nearly 60 acres of land near the airport exit from I-70.

The solar farm is expected to annually produce more than 15 million kilowatt hours of electric energy, enough to power more than 1,200 average American homes for a year. The renewable energy it produces will prevent approximately 10,700 tons of CO2 from being released into the environment each year, which is the equivalent of removing approximately 2,000 cars from the road. To help raise awareness of solar energy, real-time output data will be available to the public.

Electricity created by the airport solar farm will be fed directly into the grid operated by the Indianapolis Power and Light Company (IPL) through existing surface transmission lines that connect the airport terminal to the IPL substation west of the airport. No public funds or airport costs are anticipated to be involved in the project.

“TheINDsolar farm is just the latest innovation in our land-use strategy moving toward implementation,” said John D. Clark III, executive director and CEO of the IAA. “It supports our commitment to sustainability while helping to grow and diversify our revenue stream. Finding productive and harmonious uses for airport land ultimately aids our efforts to attract and maintain the air service that anchors the IND Aerotropolis and generates economic benefits throughout our region.”

An Aerotropolis is an “airport city” in which a collaborative, multimodal approach is leveraged to maximize the ability of an airport to foster economic growth and infrastructure development throughout its surrounding region. In addition to its core air transportation missions, IND Aerotropolis focuses on maximizing airport assets and possible development properties and integrating those with key economic drivers of the region.

Since both the borders and benefits of an Aerotropolis extend well beyond an airport’s property, a proactive and cooperative model is essential, and the IAA has been seeking and forging a non-binding memorandum of understanding (MOU) with key stakeholders in the airport’s neighboring communities with the goal of achieving additional strategic partnerships in the future.

"The airport serves as the gateway intoIndianapolis, and this is a great way to showcase our efforts to become a more sustainable city,” said Mayor Greg Ballard. ”Installing solar panels on airport property not suitable for other development with the intent to power our city using renewable energy sources and generate revenue demonstrates the culture of innovation and commitment to sustainability that has taken root throughout Indianapolis."

“We are very impressed with the Indianapolis Airport Authority’s vision for a greener future. Our goal is to be transparent to IAA’s solar project team participating through the planning, design, construction, project oversight, and financing stages as a venture partner,” said Albert Chen, CEO of Telamon. “We are grateful for the business opportunity and with Telamon's successful history of integrating products and services to our Fortune 500 customers, we are very excited to be involved in this dynamic project.”

“Projects of this size require a lot of teamwork, and we are happy to be partnered with true professionals like IAA, Johnson Melloh Solutions, Schmidt Associates, Telamon, SANYO and Indianapolis Power and Light,” said Kurt Schneider, vice president for Johnson-Melloh. ”The IAA deserves a lot of credit for their creativity in finding ways to generate revenue from non-traditional airport revenue streams and Indianapolis Power and Light gets the credit for being a leader in Indiana utilities for offering a Feed-In-Tariff to its customers that make projects like this possible.”

“With a smaller scale solar photovoltaic (pv) installation already in operation at the Johnson-Melloh Solutions site, we internalize the tremendous environmental and financial benefits of embracing renewable energy, specifically solar photovoltaic,” added

Schneider.

“We are grateful to have the opportunity to design, build, and service one of the largest airport sited solar photovoltaic projects in the United States,” said Nick Melloh, president of Johnson-Melloh Solutions. “The project is a great example of the public sector utilizing private sector investment to generate revenue. Mayor Ballard’s sustainability initiative is gaining momentum and we expect positive local impact from the IAA’s decision to work with local companies – including a substantial economic impact that will create much needed construction jobs. The decision to move this project to reality creates an opportunity for other local businesses and municipalities to take advantage of substantial downward pricing trends in high quality solar pv products and the Feed-in-Tariffs available to IPL and NIPSCO customers.”

“The ripple effect of the Airport Solar Farm will be felt acrossIndianapolisand throughout the state,” said Ron Fisher, Schmidt Associates’ director of operations. “We can see this project spurring new interest in renewable energy acrossIndiana, and even theMidwest.”

“Last Spring, the General Assembly passed legislation promoting clean energy inIndiana.  We know that we are going to need more electrical power inIndianain the future, and a diversified electricity portfolio is one of the State’s goals,” said Wayne Schmidt, CEO of Schmidt Associates. “Renewable energy resources, like the Indianapolis Airport Solar Farm, is an important piece of the puzzle.”

“SANYO is very excited to lend its development, financial, and insurance services to theIndianapolisAirportsolar project,” SANYO Solar Market Development Manager Kevin White explained. “The potential of this solar project shows thatIndianapolisandIndianaare leaders in theMidwestwhen it comes to solar energy. And, if states and utilities develop the right programs, solar can become a sustainable source of energy for everyone. I commend all parties involved in the Airport Solar project in taking the next evolutionary step in theU.S.’s energy infrastructure.”

About Johnson-Melloh Solutions

Johnson-Melloh Solutions is a design-and-build construction company focused on providing long term value to their clients by reducing life cycle costs associated with energy consumption and operating costs. Johnson-Melloh Solutions has dedicated itself to adding renewable energy design and build to its portfolio of services with a specific concentrated effort on solar photovoltaic.

Kurt Schneider, Nick Melloh, and Andy Melloh own and operate Johnson Melloh Solutions as a sister company to Johnson Melloh Inc., a mechanical contractor / mechanical service provider, established in 1976. Johnson-Melloh has a diverse market penetration consisting of, but not limited to, K-12, Municipalities, Higher Education, Industrial, and Healthcare facilities. 

www.johnsonmellohsolutions.com

www.johnsonmelloh.com

About Schmidt Associates

Schmidt Associates is a full-service architectural and engineering firm, with more than 35 years of experience in the planning and design of award winning, environmentally and socially responsible, sustainable facilities. Located in downtownIndianapolis, their staff includes licensed and certified professionals who specialize in planning, architecture, engineering, interior design, technology, and LEED criteria. Energy is at the forefront of Schmidt Associates’ designs through building optimization, energy modeling, renewable energy, and LEED administration. With 25 LEED accredited professionals and a dedicated energy studio, Schmidt Associates incorporates high performance/sustainable design into every project.

www.schmidt-arch.com

About Telamon

Telamon Corporation, anIndianapolisbased company, is your product and solution partner of choice. Established in 1985, Telamon is a $500M company, with 600+ employees across 9 locations (6 domestic, and 3 international). Uniquely positioned as a minority-owned company, Telamon has exceeded the highest standards as evidenced by our awards and certifications. At the same time, Telamon, the Greek word for "support," is a servant company—your needs are our only priority.

Telamon Energy Solutions, as a subsidiary of the Telamon Corporation, is your preferred partner for smart building, LED lighting, sustainability products, and renewable energy solutions. Telamon Energy Solutions works with our customers to develop total energy solutions that can cut costs while improving performance, reducing energy usage, and protecting our environment.

www.telamon.com

http://www.telamon.com/green.html

 

About SANYO

SANYO has recently become a 100% wholly owned subsidiary of Panasonic. Panasonic’s goals are to become the #1 Green Electronics Company in the World by 2018. Offering not only utility solar services but innovative options for homeowners as well, SANYO and Panasonic are now leading the way in the consumerization of energy.

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Indiana State Legislators Get Update on Utility Issues and Renewable Energy 9/21/2011

Posted by Laura Arnold  /   September 21, 2011  /   Posted in 2011 Indiana General Assembly, Uncategorized  /   No Comments

The meeting will be broadcast over the Internet for those unable to attend. Please visit http://media.ihets.org/house to watch the Webcast

REGULATORY FLEXIBILITY MEETING AGENDA 9/21/2011

FURTHER DETAILS http://www.in.gov/legislative/interim/committee/notices/RFSCE9L.pdf

(1) 10:00-11:00 a.m.:

Reports by the Indiana Utility Regulatory Commission  (IURC)

• Report on the current state of the IURC:

James D. Atterholt, Chairman, IURC

• Annual reports on the electricity and natural gas industries:

James D. Atterholt, Chairman, IURC

• Annual reports on the water and wastewater industries:

Carolene R. Mays, Commissioner, IURC

• Questions and comments by the Committee

(2) 11:00-11:45 a.m.:

Annual report by the State Utility Forecasting Group (SUFG)

• Annual report on renewable resources; discussion of 2011 biennial energy forecast:

Doug Gotham, Director, SUFG

• Questions and comments by the Committee

(3) 11:45 a.m.-12:00 p.m.:

Update from the Office of Utility Consumer Counselor (OUCC)

• Remarks by A. David Stippler, Indiana Utility Consumer Counselor

• Questions and comments by the Committee

(4) 12:00-1:15 p.m.:

Lunch break

(5) 1:15-2:15 p.m.:

Update on federal regulations impacting the electric industry

• Presentation by Thomas Easterly, Commissioner, Indiana

Department of Environmental Management (IDEM)

• Questions and comments by the Committee

(6) 2:15 p.m.:

Update on Hoosier Homegrown Energy plan

• Presentation by

Brandon Seitz, Director, Indiana Office of Energy Development (OED)

• Questions and comments by the Committee

**Agenda subject to change**.

WSJ: ‘Green Jobs’ vs. Real Energy Jobs; Is WSJ’s Moore Wrong About Energy Subsidies?

Posted by Laura Arnold  /   September 20, 2011  /   Posted in Uncategorized  /   1 Comments

Dear Readers:

I think it is important to hear from the other side. This is a pre-emptive strike against President Obama by the WSJ who defends BIG OIL and the FOSSIL FUEL industry. President Obama is scheduled to make his address next Thursday night at 7:00 p.m. as I understand. By the way, I think I forgot to post this before the President's speech. Sorry!

I also don't know where this guy is getting his facts when he describes the Arlington, VA solar installation on the local library and states: "the solar panels have a life span of no more than 10 to 15 years". Somebody needs to do a little better fact checking on that statement.

Check out this article I posted from 2009 that has a slightly different take and directly refutes the statement below in this Editorial that "For every two cents of tax subsidies for "Big Oil", wind and solar get nearly $1." http://indianadg.wordpress.com/2009/10/29/fossil-fuel-subsidies-more-than-double-those-for-renewables

All I can say is enjoy and watch for President Obama's speech next week.

Laura Ann Arnold

SEPTEMBER 2, 2011

For every two cents of tax subsidies for 'Big Oil,' wind and solar get nearly $1.

By STEPHEN MOORE

President Obama is expected to seek another $250 billion or so in new stimulus funds next week, with plenty of money for clean energy and the creation of so-called green jobs.

Never mind that no one can seem to find many Americans who got green jobs as a result of the original stimulus spending. Consider two stories.

In the 2009 stimulus, the feds gave nearly $3.2 million in green-energy grants to my county of Arlington, Va., with almost $300,000 used to install  solar paneling on the roof of our local library. (Don't ask why the feds are giving one of the five wealthiest counties in America free money.)

Arlington officials boast the project will save $14,000 in annual electricity  costs, but the solar panels have a life span of no more than 10 to 15 years. So  the feds spent $300,000 to shave at most $150,000 off the net present value of Arlington's electric bills. Some 3,000 counties across the country received  federal funds for the same kind of negative-return energy conservation  "investments." This is the kind of "clean energy" program the administration  wants to expand.

Editorial board member Steve Moore on Democrats' fetish  with green jobs and their attacks on fracking.

Now for a good energy news story. I recently traveled to Wheeling, W.V.,  which is 45 minutes down the road from Pittsburgh along the Ohio River and smack  in the heart of the old Rust Belt. Unlike most places you go to these days, the  town is booming. Defying the national mood, people are optimistic about the  future. Why? It's what residents are calling the "West Virginia gold rush."

Except it's not gold, it's natural gas. Wheeling sits atop the famous  Marcellus shale formation—one of the biggest treasure troves of natural gas ever  discovered in America. With recent breakthroughs in hydraulic fracturing  technology, that gas can be extracted at very affordable prices. A few years ago  Wheeling farmers and land owners were getting about $50 to $100 an acre for  drilling rights. Now they get up to $3,000, plus monthly royalties. What was  once a dying town now has jobs and new funds for schools and roads, while West  Virginian farmers and land owners are getting rich. The same story of economic  revival can be told about counties in Pennsylvania and Ohio sitting atop the  Marcellus bonanza.

Even the White House acknowledges that the natural gas deposits in the  Midwest and Texas contain potentially 100 years worth of cheap natural gas. Yet  as far as I can tell, President Obama has never even uttered the words  "Marcellus shale" in a major speech. Incredible.

In early August a Department of Energy advisory panel reported that fracking  for natural gas poses risks to air and water quality and so should be subject to tighter regulations—hardly a ringing endorsement. The green movement wants it  stopped completely because of dangers to water, even though continued  technological progress will reduce these risks.

stevemoore

Associated PressPresident Obama talks jobs in Alexandria, Va.

The White House's hostility toward fossil fuels seems to know no bounds.  Exxon has made some of the largest oil finds in a decade, in the Gulf of Mexico,  and yet the Obama administration is holding up the leases and permitting  process. In North Dakota, an Obama-appointed U.S attorney has brought criminal  charges against seven oil companies (with penalties of up to six months in  prison) for causing the deaths of 28 migratory birds found in oil waste pits.

According to data from the Federal Reserve Board's Industrial Production  Indexes, the oil and gas industry, which the Obama Energy Department loathes,  has had more growth in output than any other manufacturing industry in the U.S.  from 2005 through 2011. As a reward, the administration is proposing $35 billion  in new taxes on the industry to slow it down. Even if we accept the dubious  White House claim that all the oil and gas tax write-offs are unwarranted  loopholes, a 2011 Congressional Research Service study finds that per unit of  electricity produced, for every two cents of tax subsidy to Big Oil, Big Green  (wind and solar) get closer to $1 in handouts.

"The environmentalists are for any energy source unless it actually works,"  notes Stephen Hayward, an energy expert at the American Enterprise Institute. A  few years ago the Democrats were all in favor of natural gas at least as a  "bridge" energy source. That abruptly changed when the extent of America's  abundant natural gas resources became fully known and more affordable drilling  techniques opened up a superhighway to energy security. The irony of the green  movement's reactionary antifracking crusade is that one of the most important developments in cutting U.S. carbon emissions has come from replacing coal-burning fire plants with natural gas.

So we now have a national energy policy directing our resources away from  cheap, efficient and increasingly abundant fuels like coal, oil and natural gas  while we channel billions of tax dollars to 500-year-old energy technologies  like wind power that can't possibly scale up to power a modern-day industrial  economy. That's a shame.

Mr. Moore is a member of the Journal's editorial board.

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