Keep It Local: The $14 Billion Opportunity

By Dean Muller, President, Wisconsin for Environmental Justice 

Because Wisconsin has no naturally occurring coal, oil, or natural gas reserves, the state essentially exports its wealth to import 100% of its fossil fuel needs.

As of early 2026, Wisconsin spends approximately $14 billion to $15 billion annually on importing fossil fuels.

1. The Cost Breakdown

This figure represents the "energy drain" -- money that leaves the Wisconsin economy to pay extraction companies and refineries in other states (like Wyoming for coal) and countries.

• Total Annual Spend: ~$14.4 billion (based on most recent 2024-2025 data).

• Per Household: This equates to roughly $5,500 to $6,000 per household spent annually on fossil-fuel-based energy (gasoline, home heating, and electricity generation).

• Economic Impact: This expenditure accounts for approximately 8% to 9% of Wisconsin’s total GDP.

2. Reliance by Fuel Type

Despite aggressive growth in solar and wind, fossil fuels still dominate the state's energy mix:

• Natural Gas (~40% of electricity): Now the leading source of electricity in Wisconsin, surpassing coal for the first time in 2022. It is also the primary heating source for 66% of Wisconsin homes.

• Coal (~31% of electricity): While dropping (down from 60%+ a decade ago), Wisconsin remains heavily reliant on coal shipped in by rail, primarily from the Powder River Basin in Wyoming.

• Petroleum/Gasoline: 100% imported, primarily through pipelines from refineries in the Chicago area and the Twin Cities.

3. The "Energy Drain" vs. Local Investment

Policy analysts often refer to this as the "Leaky Bucket" problem. Because Wisconsin doesn't produce these fuels, the billions spent on them do not circulate locally to create Wisconsin jobs or tax revenue.

• The Transition Argument: Proponents of the Wisconsin Clean Energy Plan argue that transitioning to in-state renewables (wind, solar, and bio-gas) keeps $14 billion within the state borders, supporting local installers, farmers (for bio-digesters), and maintenance crews.

• Cost Avoidance: A 2023-2025 study by RENEW Wisconsin estimated that moving toward a net-zero economy by 2050 would save the state roughly $111 billion in avoided fossil fuel import costs over that period.

Summary of Fossil Fuel Imports

Fuel Type	Source	Primary Use
Coal	Wyoming & Montana	Large-scale power plants
Natural Gas	Canada & Southern US	Home heating & flexible power plants
Petroleum	Refineries in IL & MN	Transportation (Gasoline/Diesel)

A Choice for Wisconsin’s Future

Wisconsin cannot change the fact that it lacks coal, oil, and natural gas reserves. But it can decide whether the billions spent on energy each year continue leaving the state, or begin circulating within our own communities.

The question facing policymakers, businesses, and residents is simple:

Do we continue exporting $14 billion every year, or do we begin investing that money in Wisconsin’s own energy future?

Keeping more of our energy dollars local is not only an environmental strategy--it is an economic development strategy that can strengthen communities across the state. 

Want to act? Learn what you can do here.

Have more questions? Learn how the litigation works, why municipalities are participating, and what it could mean for Wisconsin communities on our FAQs page.