Federal regulators gave hope to proponents of a Smart Grid. They approved financial incentives to allow a company to develop a 3,000-mile long powerline in the Midwest to serve Chicago and points east. If built, the U.S. would be able to tap into sizeable wind power resources in the Midwest. While hope lives eternal, the odds of it ever getting this project built are slim and none unless the Obama Administration Congress get their acts together.

This week, federal energy regulators approved incentives that could help Novi, a Michigan company, build a 3,000-mile transmission "superhighway" called the Green Power Express" to move wind-generated power out of the Midwest.  The developers will be able to realize 12.38 percent return on investment for the project, which is expected to cost $10 billion to $12 billion. of course they have to first build it to realize any benefits.

If built, the "Green Power Express" with extra high-voltage (765kV) would surge with 12,000 megawatts of wind-generated power. The lines would spread across the Dakotas, Minnesota, Iowa, Wisconsin, Illinois and Indiana to deliver wind power to Chicago and points east.

Keep in mind thought that construction will not take place until seven States grant approval.

Why Green Power Express may never be built
In a totally separate, but related energy matter this week, the U.S. Department of Commerce killed the large Broadwater liquified natural gas project (LNG) that would have brought natural gas to New York and Connecticut.

Commerce cited "inconsistencies with the Coastal Zone Management act" in Long Island Sound as the primary reason for denying the permit to construct the project. This was all done after years of environmental impact analysis by federal energy regulators, who had actually approved the project. Who gave the Department of Commerce the right to do this? Congress did.

So who really determines whether energy projects are built? Unfortunately the federal government doesn't, thanks to Congress. It's actually the "tail wagging the dog" when it comes to natural gas, LNG, hydropower and power line projects. In all cases where federal energy regulators are involved as the "lead" agencies, Congress through the Coastal Zone Management Act and Clean Water Act allows the States to actually weigh in and veto a project. This is widely known, but it's like having an elephant in the room that no one really wants to acknowledge.

The proponents of the Green Power Express should rethink their next move. Despite the merits of tapping into wind energy and improving the grid, they will be facing States and agencies that could care less about providing electricity to Chicago and points east. The States and especially the agencies have single focus missions, i.e. protect water quality, wildlife, endangered species, etc. They are not required to way energy benefits into their decisions. Green Power needs to come up with a way to win support for their project

What are the odds that this project will see the light of day?
Let me put it this way and this is just my opinion: the odds of completing a space mission to Jupiter and returning are much better than actually building the Green Power Express Project. Just do the math. With the Broadwater LNG project, the developer had to contend with two State agencies, New York and Connecticut. Green Power Express will have seven States and numerous federal agencies to contend with. Also the current splintered system of federal and state regulation and Congress have really disadvantaged a project like Green Power.

Some will argue that we are not dealing with coastal issues in the Midwest. That may be true, but all power lines will have to obtain approval in the form of wate quality certification and Corps of Engineers dredge and fill permits before they are constructed at a minimum.

Green Power Express and proponents of a more rational energy strategy need to bring these facts up to the Obama Administration and Congress so we don't repeat these mistakes in new energy legislation and to realize the benefits of a Smart Grid and more wind energy. While I personally believe in environmental protection, more often than not, the record of State agencies regarding large energy projects is highly skewed and anti-project. Tradeoffs have to be made and the State and associated agencies need to get with the program and reallign their thinking.