Walker administration project to battle manure pollution has been hit by delays

An initiative by former Gov. Scott Walker’s administration to use millions of dollars in state funds to subsidize a project that would generate natural gas from manure is struggling with delays and public opposition.

The project in Brown County, which has so far failed to win local approval, highlights unease over the growing tide of animal waste in some regions of the state and how best to manage manure as dairy farms grow larger. 

The state Public Service Commission approved spending $15 million in September 2017 to help finance a biodigester system by a Milwaukee-area developer, BC Organics, that would harness methane — a gas produced by manure.

In all, waste from 21,000 cows would be used to produce renewable natural gas, also known as RNG, which when burned in vehicles can provide larger reductions in greenhouse gas emissions compared to gasoline.  

The funding is coming from Focus on Energy and a surcharge collected on electricity customers.

The subsidy represented the Walker administration’s largest single financial contribution in efforts to address agricultural pollution and its effect on ground and surface waters. 

In this case, BC Organics would collect 790,000 gallons of liquid manure daily from seven farms, much of it via pipeline. 

The manure would otherwise be spread without treatment in areas with fractured bedrock, where it could drift through soil and pollute groundwater. 

When PSC members approved the subsidy, then-Chairwoman Ellen Nowak, a Walker appointee, said the ability of farms in the region to safely spread nutrient-filled manure was becoming “increasingly untenable.”

Runoff from manure is a leading source of algae blooms and contributes to contamination of private wells. 

At the time of the announcement, the PSC said it expected the business to be operating by January 2019, although PSC documents now show that developers have until October to begin producing natural gas. 

The $65 million project, however, has languished as citizens have raised worries about odors, potential spills and the scale of the project. 

The Town of Holland Board voted 2-1 May 20 to reject a conditional use permit for the project. 

BC Organics said last week that it expects to appeal the decision in state courts while it also explores an alternative site in neighboring Town of Wrightstown.

The project initially included Milwaukee-based WEC Energy Group, the parent of We Energies and Wisconsin Public Service of Green Bay, as the largest financial backer. 

A spokesman for WEC Energy last week said the company informed all parties in May that it was getting out of the endeavor. 

Representatives of BC Organics said they had been aware of the utility’s plans for months and have adequate funding to move ahead. The PSC has not yet provided money to the company.  

“There is not a question that this is going to be built,” said Duane Toenges, chief executive officer of Dynamic Group of Germantown, a partner in the project. 

“We have financing lined up. The devil is always in the details. We are on course. (The vote by the Holland Town Board) has cost us a setback — some time. It’s unfortunate, but it’s not stopped the project.”

As for the benefits, Dan Nemke, chief technology officer for the company, said the project would reduce phosphorus applied to land by 25% to 50% and cut nitrogen by 50% to 90%. Both are leading sources of water pollution. 

The renewable gas produced will be piped into gas lines and earmarked to meet the needs of California’s low-carbon fuel standard, he said. The project’s wastewater system cleans water in liquid manure that the farms can use again. 

Town of Holland officials declined to comment on the project because of potential litigation. 

Neighboring Kewaunee County also was seen as a potential site for such a system. 

Lee Luft, a member of the Kewaunee County Board who closely tracks manure issues, said the technology is promising, especially in northeastern Wisconsin where phosphorus, nitrogen and bacteria from manure are overwhelming the landscape. 

But a system of wastewater treatment and energy generation is “really too ambitious. They should be doing this on a smaller scale,” Luft said.

“We were essentially going to be a guinea pig. It was all done on a very short time span, without a chance to evaluate what all of the implications would be.”

Among the concerns raised in the Town of Holland were the problems reported at other facilities in the United States, including a 2014 incident in Waunakee, in Dane County, that caused a fire and methane explosion. 

Dynamic was involved with the Waunakee project, but only until 2011, Toenges said.

Rebecca Larson, an expert in biological waste engineering at the University of Wisconsin-Madison, said that systems that combine multiple functions, such as treatment of water and organic waste aren’t common in Wisconsin farming. 

“It’s not a new technology, but it’s relatively new when applied to dairy,” Larson said. 

The system has the benefit of reducing pathogens in manure that can make people sick if infiltrates groundwater, she said. 

For people living nearby, however, “there is increased potential for traffic, noise and odors,” she said.