Environmentalists in Wisconsin are concerned about the state's plans to buy $2 billion in power from Manitoba Hydro, charging that the Crown corporation is not as green as it claims to be.

Charlie Higley, executive director of the watchdog group Citizens' Utility Board of Wisconsin, describes his state's deal with Manitoba Hydro, unveiled last month, as "disturbing."

"The issue for Wisconsin is … should our utilities even buy power from Manitoba Hydro, and if it's bought, should it be considered renewable energy? At this point, I would say no to both," Higley told CBC News.

"It's wrong to have U.S. utilities buy power when these systems have not been fully licensed, and the disagreements over their use and who's responsible for paying for the negative impacts — all those issues are still not resolved."

Jeff Crawford, attorney general for the Forest Country Potawatomi, an American Indian tribe concerned with Manitoba Hydro's record with First Nations, says Wisconsin needs renewable energy to wean itself from its dependence on coal — but not energy from Manitoba Hydro.

"I don't think that the people of Wisconsin are going to accept that that is good, clean, green energy," he said.

Licences still interim, 35 years after issuance

Merrell-Ann Phare, an aboriginal rights lawyer with the Winnipeg-based Centre for Indigenous Environmental Resources, said the new power deal builds on Manitoba Hydro's past projects — a foundation she considers shaky.

The interim licences governing Manitoba Hydro's regulation of water levels in Lake Winnipeg and the use of the Churchill River diversion are each more than 35 years old, but neither has been finalized, she said.

"There was never an environmental impact assessment done before they were operational," Phare told CBC News.

"The licences that are in place right now only deal with issues related to water power. They're really not dealing with protecting fish species or protecting any other elements of the environment, really. There's a small clause that deals with cleaning out woody debris, which could be seen as an environmental term, but really not."

Phare admits she's not sure why Manitoba Hydro has not finalized the licences for Lake Winnipeg and the Churchill River Diversion. Manitoba's government could compel it to, she said, but that would trigger public consultations.

"They would have to do a widespread federal- and provincial-government-led consultation with aboriginal people — any aboriginal peoples who are potentially impacted or have been impacted by Lake Winnipeg regulation or the Churchill River diversion — which is many, many, many First Nations."

Hands are tied, says premier

For its part, Manitoba Hydro officials said the interim licences are legal. Some are in the process of being finalized, they said, but it is a lengthy process.

Premier Gary Doer said Tuesday that the province cannot insist the licences be finalized.

"I can't compel," he said. "Some of them are fixed periods of time going back to projects even before … the Churchill River projects. But the licences have been renewed by the environmental licensing director here. Hydro can't compel a quasi-judicial body, nor can the premier."

Doer said he is confident the power generated using the interim licences is "green."

Wisconsin Gov. Jim Doyle, who was in Winnipeg on Tuesday to address the Chamber of Commerce on the topic of growing his state's and Manitoba's economies, said he doesn't agree with critics' complaints about Manitoba Hydro.

"I don't have any problem with it, and I've been trying to make sure that Wisconsin understands that as well," he said.

"We're not in the business to come and decide whether you handle tribal relations correctly, because Lord knows you could come and probably criticize in Wisconsin. We have 16 different Indian nations, and you could probably come and critize us."

In April, provincial officials announced that Manitoba Hydro had signed a term sheet to provide up to 500 megawatts of power to the Wisconsin Public Service over 15 years, starting in 2018. The deal is still subject to public scrutiny.

In early 2007, Hydro and the Wisconsin Public Service renewed an existing 100-megawatt agreement.