Madison, WI— Today, Midwest Environmental Advocates (MEA) submitted a complaint to the California Air Resources Board (CARB) asking the agency to invalidate carbon offset credits generated by a Kewaunee County livestock facility with a long history of violating Wisconsin’s water quality laws.
The complaint—which was submitted jointly by MEA, Clean Water Action Council of Northeast Wisconsin, Kewaunee CARES, and Friends of the Forestville Dam—asks CARB to invalidate carbon offset credits generated by Wakker Dairy during a period of time in 2017 and 2018 when the facility was found to be in violation of its Wisconsin Pollutant Discharge Elimination Program (WPDES) permit.
“We submitted the complaint to ensure that California’s carbon offset program does not subsidize environmental pollution here in Wisconsin,” said MEA Staff Attorney Adam Voskuil.
The credits, which are estimated to be worth almost $500,000, were generated by Wakker Dairy under CARB’s Cap-and-Trade Program. The program is designed to incentivize the reduction of greenhouse gas emissions by requiring large entities like electric utilities and oil refineries in California to either reduce their emissions or purchase offset credits generated by emissions reduction projects elsewhere.
According to CARB’s rules, manure-fueled biodigesters like the one operated by Wakker Dairy qualify as emissions reduction projects and are therefore eligible to receive lucrative offset credits that can be sold, often for a substantial profit. However, CARB’s rules also state that credits earned by entities that are found to be in violation of their state’s environmental regulations will be invalidated.
Wakker Dairy has a long history of violating environmental regulations stretching back to 2001 and has paid hundreds of thousands of dollars in fines. In April 2022, the facility was ordered to pay $225,000 for multiple permit violations stemming from overapplication of manure and more than a dozen manure spills, including violations that occurred at the same time Wakker was earning credits from CARB.
Later that same year, the Wisconsin Department of Justice filed felony charges against Wakker Dairy for alleged fraud and conspiracy. According to the criminal complaint, the facility intentionally dumped millions of gallons of excess manure that eventually made its way into tributaries of Lake Michigan.
“Wakker Dairy appears to have made no effort to improve their operation and prevent future violations, yet they continued to profit from irresponsible and illegal environmental practices,” said Nancy Utesch of Kewaunee CARES. “Their terrible track record should deny them eligibility.”
Overapplication of manure and commercial fertilizers, coupled with fractured bedrock, has led to widespread groundwater pollution in Kewaunee County, where 60% percent of private drinking water wells have dangerously high levels of bacteria and nitrates.
Harmful bacteria such as E. coli can cause severe gastrointestinal illness, while exposure to high levels of nitrates can cause blue baby syndrome and can increase the risk of birth defects, thyroid disease and colon cancer.
While biodigesters have been touted as a solution to the negative environmental impacts of the proliferation of large livestock facilities in Wisconsin, the technology’s methane reduction benefits have been significantly overstated. Moreover, programs like Cap-and Trade and California’s Low Carbon Fuel Standard actually incentivize the production of manure.
“It shouldn’t come as a surprise to anyone that monetizing manure simply encourages farms to produce more of it. More manure means more methane, and digesters capture only a portion of the increased emissions. That means the current system is likely making the problem worse rather than better,” said Christine Reid of Friends of the Forestville Dam.
A June 2024 report found that Kewaunee County dairies with biodigesters significantly increased their herd sizes compared to other dairies, generating more air and water pollution and more methane emissions.
“Rather than subsidizing an inherently unsustainable industry, we should be investing in climate solutions that deliver real environmental benefits so that rural Wisconsinites can have the clean water they deserve,” said Dean Hoegger, president of Clean Water Action Council of Northeast Wisconsin.
