Report on Wisconsin’s Elimination of Home Energy Sales Tax and its Alignment with Sustainable Development Goals

Executive Summary

A recent bipartisan agreement within the Wisconsin state budget has resulted in the year-round elimination of the sales tax on home energy bills. This policy reform represents a significant advancement in achieving several United Nations Sustainable Development Goals (SDGs), particularly those related to poverty, energy affordability, inequality, and sustainable economic growth. The measure is projected to save Wisconsin households approximately $170 million over the next two years and sets a precedent for future energy policy focused on affordability and sustainability.

Analysis of Policy Impact on Sustainable Development Goals

SDG 1: No Poverty & SDG 10: Reduced Inequalities

The elimination of the 5% sales tax on electricity and natural gas directly addresses key targets of SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).

• Regressive Tax Removal: The previous policy, which taxed energy usage during summer months, was a regressive measure that disproportionately burdened low- and middle-income families. Its removal alleviates financial pressure on vulnerable households.
• Increased Disposable Income: By making essential services more affordable, the policy helps to prevent households from falling into energy poverty and reduces economic inequality within the state.

SDG 7: Affordable and Clean Energy & SDG 13: Climate Action

The policy change is a foundational step toward ensuring access to affordable, reliable, and modern energy for all, a core objective of SDG 7. Furthermore, it supports a broader transition to sustainable energy systems, which is critical for SDG 13 (Climate Action).

1. Enhanced Affordability: The immediate effect of the tax cut is a direct contribution to the “affordable energy” component of SDG 7.
2. Investment in Clean Energy: The report highlights a consensus that long-term affordability depends on continued investment in low-cost, clean energy resources. This includes:
   • Wind Power
   • Solar Power
   • Battery Storage Technology
3. Grid Modernization: Modernizing the energy grid is identified as a necessary action to support the integration of renewables and ensure a reliable supply, aligning with both SDG 7 and SDG 13.

SDG 8: Decent Work and Economic Growth & SDG 11: Sustainable Cities and Communities

The strategic focus on energy policy is positioned as a driver for economic development and the creation of sustainable communities.

• Economic Competitiveness: An “all of the above” energy strategy, coupled with a modernized grid, can make Wisconsin an attractive location for large-scale capital investments, such as data centers, fostering economic growth and creating jobs (SDG 8).
• Resilient Infrastructure: Investing in a diverse and modern energy infrastructure contributes to the development of resilient and sustainable communities (SDG 11) capable of meeting future energy demands.

SDG 17: Partnerships for the Goals

The successful implementation of this policy serves as a prime example of SDG 17, which emphasizes the importance of partnerships to achieve sustainable goals.

• Bipartisan Governance: The collaboration between legislative Republicans and Governor Tony Evers demonstrates a multi-stakeholder partnership in government.
• Civil Society Collaboration: The unified support from organizations such as Powering Wisconsin and the Wisconsin Conservative Energy Forum underscores the role of non-governmental actors in advancing shared sustainability objectives.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Wisconsin’s elimination of the sales tax on home energy bills and its call for investment in renewable energy sources connects to several Sustainable Development Goals (SDGs). These goals are relevant due to the article’s focus on energy affordability, support for vulnerable populations, economic development, infrastructure modernization, and policy collaboration.

• SDG 1: No Poverty: The article addresses the financial burden on low-income families, which is a key aspect of poverty reduction.
• SDG 7: Affordable and Clean Energy: This is the most central SDG, as the article’s main topics are making energy more affordable and investing in clean energy sources like wind and solar.
• SDG 8: Decent Work and Economic Growth: The text links investment in modern energy infrastructure to attracting new businesses, creating jobs, and generating tax revenue.
• SDG 9: Industry, Innovation, and Infrastructure: The call to modernize the aging grid and invest in new energy technologies like battery storage directly relates to building resilient and sustainable infrastructure.
• SDG 10: Reduced Inequalities: By eliminating a “regressive” tax that “hit low-and-middle-income families hardest,” the policy change aims to reduce economic inequality.
• SDG 17: Partnerships for the Goals: The article explicitly highlights the “bipartisan victory” and collaboration between different political parties and civil society organizations to achieve the policy change.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues discussed, several specific SDG targets can be identified:

1. Target 7.1: “By 2030, ensure universal access to affordable, reliable and modern energy services.”
   • Explanation: The article’s primary focus is on making energy more affordable for “Wisconsin families” by eliminating the sales tax on home energy bills, directly contributing to this target.
2. Target 7.2: “By 2030, increase substantially the share of renewable energy in the global energy mix.”
   • Explanation: The article advocates for continued investment in “low-cost energy resources like wind, solar and battery storage,” which aligns with increasing the share of renewable energy.
3. Target 1.4: “By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services…”
   • Explanation: The policy change makes a basic service—home energy—more affordable, thereby improving access for vulnerable and low-income populations who were disproportionately affected by the tax.
4. Target 10.2: “By 2030, empower and promote the social, economic and political inclusion of all…”
   • Explanation: The article describes the former sales tax as “regressive,” meaning it placed a heavier burden on those with lower incomes. Eliminating it is a step toward reducing this economic inequality.
5. Target 9.1: “Develop quality, reliable, sustainable and resilient infrastructure… with a focus on affordable and equitable access for all.”
   • Explanation: The call for “modernizing our aging grid” and investing in new energy infrastructure like solar, wind, and battery storage directly supports the development of sustainable and reliable infrastructure.
6. Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…”
   • Explanation: The article celebrates the “bipartisan victory” involving “legislative Republicans and Gov. Tony Evers” and mentions the advocacy of civil society groups like “Powering Wisconsin” and the “Wisconsin Conservative Energy Forum,” showcasing a multi-stakeholder partnership.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies several quantitative and qualitative indicators that can be used to track progress:

• Financial Savings for Households: The article explicitly states the tax cut is “expected to save families roughly $170 million over the next two years.” This figure serves as a direct indicator of increased energy affordability (Target 7.1).
• Investment in Renewable Energy: While no specific numbers are given, the call to “invest in low-cost energy resources like wind, solar and battery storage” implies that progress can be measured by the amount of capital invested in these technologies (Target 7.2).
• Economic Growth and Job Creation: The article suggests that energy investments can attract “data centers and other large capital investment projects that bring economic growth, jobs and new tax revenue.” Progress could be measured by the number of jobs created or the amount of new tax revenue generated in the state (Target 8.2).
• Infrastructure Modernization: The mention of “modernizing our aging grid” implies that progress can be measured by the level of investment and the number of upgrades made to the state’s energy grid (Target 9.1).
• Existence of Multi-Stakeholder Partnerships: The article’s description of the “bipartisan” effort and the involvement of specific energy forums (“Powering Wisconsin,” “Wisconsin Conservative Energy Forum”) serves as a qualitative indicator of successful partnerships (Target 17.17).

4. Summary Table of SDGs, Targets, and Indicators

Source: jsonline.com