March 2011, Focus: Green Business
ENERGY LAW ATTORNEY GREENS THE STATE ONE CLIENT AT A TIME
Talking about the profound shift in the world’s economy from fossil fuels to alternative forms of energy, attorney Michael J. Allen says, “We’ve got 50 years of hard work ahead of us because our infrastructure is built on what made sense in the past.”
Handling some of the legal challenges of this change was why Allen opened his solo practice, Energy Law Wisconsin, which focuses on energy issues, in 2004. Prior to that he practiced environmental and real estate law for Stafford Rosenbaum LLP in Madison for 13 years and had previous experience in water rights law in Arizona, beginning in 1980.
When asked whether he considers himself an environmentalist, Allen answers “Yes,” but adds, “I’m not an activist, I’m a moderate. I pick and choose my causes, and apply myself in areas where I can do the greatest good.”
Allen sees three “unstoppable forces” underlying the world’s shift in energy. There’s a finite amount of fossil fuels and the world is reaching or has reached its peak in oil production. There’s a growing awareness about protecting the atmosphere from greenhouse gas emissions, primarily from burning fossil fuels. Finally, there’s a need for energy independence for the United States as a whole, and for Wisconsin in particular.
One of Allen’s first clients in his solo practice was Robert Jordan, a long-haul trucker from Watertown, who had invented an electronic device that eliminated truck idling. Allen helped Jordan obtain a patent and launch Idle Free Systems Inc. to market the device. It is now the idle-elimination system of choice for Mack trucks and is currently installed on many rigs.
Allen has also provided legal services for a new Wisconsin solar panel manufacturer, a wind services provider, a hydropower firm and other small- and medium-sized energy companies.
He was one of the lead attorneys in negotiating and drafting contracts for Madison Gas and Electric’s West Campus Cogeneration Facility. This plant not only generates 150 megawatts of electricity but also provides steam heat and chilled water air conditioning for the University of Wisconsin-Madison.
Allen developed two model agreements for farm and timber biomass used in power generation for the Wisconsin Office of Energy Independence.
He has represented the non-profit organization that administers Wisconsin’s Focus on Energy’s residential, business and renewable energy programs, and has also worked for utilities and other companies involved in improving energy efficiencies.
Allen says he spends about half his time — not the billable portion — studying environmental issues. Besides his participation in many organizations, he goes to conferences, takes part in Webinars and attends trade shows.
“From this I know not just the legal and economic issues but the culture of the (alternative) energy industries,” he says.
Allen sees five areas in which energy law will likely be focusing in the coming years:
• Electric vehicles and how they affect the power grid.
• Carbon trading and attempts to monetize carbon credits from projects that lessen carbon dioxide emissions.
• Creative financing for renewable energy projects such as PACE (Property-Assessed Clean Energy) agreements. These agreements help home owners and businesses afford the initial investment of clean energy projects, and repay loans with savings in energy expenses over time.
• Solar projects, which will increase as the costs come down.
• Biomass projects.
Referring to last fall’s federal and state elections that gave Republicans more control in Congress and statehouses across the country, Allen sees a “period of uncertainty” on the future of tax credits and other governmental incentives for renewable energy.
“But I don’t get into the red state, blue state debate,” he adds, pointing to the fact that some of the greatest environmental laws — the Clean Water Act and the creation of the Environmental Protection Agency — were passed and signed into law by a Republican president, Richard Nixon, in the early 1970s