SB81: Bill Text

LRB-1492/1

RCT:wlj:jf

2007 - 2008 LEGISLATURE

2007 Senate BILL 81

March 6, 2007 - Introduced by Senators Miller, Erpenbach, Risser and Lehman, cosponsored by Representatives Black, Boyle, Molepske, Hebl, Berceau, Parisi, Hilgenberg, Sinicki, Pocan, Benedict, Pope-Roberts and Smith. Referred to Committee on Environment and Natural Resources.

SB81,1,3 An Act to amend 299.95; and to create 15.347 (5), 15.347 (6), 20.370 (2) (cj) and chapter 286 of the statutes; relating to: management of greenhouse gases, granting rule-making authority, and providing penalties.

Analysis by the Legislative Reference Bureau

This bill provides for the management of emissions of specified greenhouse gases, including carbon dioxide. Greenhouse gases are gases that trap heat in the atmosphere. The bill treats greenhouse gas emissions from the generation of electricity that is generated outside this state but is used in this state as though the emissions occurred in this state.

Initial requirements

The bill requires the Department of Natural Resources (DNR) to promulgate rules requiring the monitoring and reporting of greenhouse gas emissions by significant sources of those emissions. DNR must phase in the requirements beginning with the types of sources that emit the most greenhouse gases.

The bill requires DNR to determine the level of greenhouse gas emissions in this state in 1990 (including emissions from the generation of all electricity used in this state) and to set a statewide greenhouse gas emission limit for 2020 that is equivalent to the 1990 level. The deadline for setting the limit is January 1, 2009.

The bill requires DNR to identify measures for reducing greenhouse gas emissions that can be implemented before the full planning and rule-making process described below. DNR must then make rules implementing the interim measures, to take effect no later than January 1, 2011.

Long-term planning and rule making

The bill requires DNR to approve a plan, no later than January 1, 2010, for achieving reductions of greenhouse gas emissions that are technologically feasible and cost-effective. The bill authorizes DNR to make recommendations concerning various methods of achieving reductions in greenhouse gas emissions, the methods include mandating specific actions to be taken, allowing greenhouse gas emission sources to implement alternative methods to specific actions that would otherwise be mandated, and authorizing the use of what are called market-based compliance mechanisms.

The bill requires DNR to promulgate rules, to take effect no later than January 1, 2013, specifying greenhouse gas emission limits and measures to achieve greenhouse gas emission reductions, in furtherance of achieving the statewide greenhouse gas emission limit. The bill imposes several requirements on DNR relating to the rules, for example, to design the rules in a manner that is equitable and seeks to minimize costs and maximize benefits, to give credit to emission sources that voluntarily reduce emissions before the rules take effect, to ensure that emissions of certain air pollutants do not increase, and to limit the extent to which reductions in emissions in this state are offset by increases in emissions outside the state.

The bill includes specific prerequisites to including market-based compliance mechanisms in the rules. Market-based compliance mechanisms include arrangements under which a source that would otherwise be required to reduce its emissions by a specified amount instead satisfies the requirement by buying emission credits from a source, which may be outside of the state, that reduces its emissions by more than is otherwise required.

Governor's authority

The bill allows the governor to extend deadlines in the bill or in rules promulgated under the bill in the event of extraordinary circumstances, catastrophic events, or threat of significant economic harm. Each extension may not exceed one year, but the governor may make additional extensions.

Other provisions

The bill provides civil and criminal penalties for violations of the greenhouse gas management provisions. The penalties are the same as under the current air quality laws.

The bill authorizes DNR to impose fees on greenhouse gas emission sources that are regulated under the bill. The bill also requires state agencies to take actions to reduce their greenhouse gas emissions.

The bill creates two bodies to advise DNR about greenhouse gas management. These are the Greenhouse Gas Management Environmental Justice Council and the Greenhouse Gas Management Economic and Technology Advancement Council.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB81, s. 1 Section 1. 15.347 (5) of the statutes is created to read:

SB81,3,9 15.347 (5) Greenhouse gas management environmental justice council. There is created in the department of natural resources a greenhouse gas management environmental justice council consisting of at least 3 members, appointed by the secretary of natural resources from nominations received from environmental justice organizations and community groups, representing communities that have the most significant exposure to air pollutants, including communities with minority populations and communities with low-income populations.

SB81, s. 2 Section 2. 15.347 (6) of the statutes is created to read:

SB81,3,14 15.347 (6) Greenhouse gas management economic and technology advancement council. There is created in the department of natural resources a greenhouse gas management economic and technology advancement council consisting of members appointed by the secretary of natural resources.

SB81, s. 3 Section 3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB81, s. 4 Section 4. 20.370 (2) (cj) of the statutes is created to read:

SB81,4,4 20.370 (2) (cj) Greenhouse gas management. The amounts in the schedule for greenhouse gas management activities under ch. 286. All moneys received under s. 286.35 shall be credited to this appropriation account.

SB81, s. 5 Section 5. Chapter 286 of the statutes is created to read:

SB81,4,7 Chapter 286 Greenhouse gas management

SB81,4,8 286.01 Definitions. In this chapter:

SB81,4,10 (1) "Allowance" means an authorization to emit, during a specified year, up to one ton of carbon dioxide equivalent.

SB81,4,16 (2) "Alternative compliance mechanism" means an action, including a flexible compliance schedule, alternative control technology, process change, or product substitution, undertaken by a greenhouse gas emission source that is approved by the department and that achieves an equivalent reduction of greenhouse gas emissions over the same period as a specific action that would otherwise be required under this chapter.

SB81,4,19 (3) "Carbon dioxide equivalent" means the amount of carbon dioxide by weight that would produce the same impact on global warming as a given weight of another greenhouse gas.

SB81,4,21 (3m) "Carbon sequestration" means the long-term storage of carbon in water bodies, soil, vegetation, or geologic formations.

SB81,4,23 (4) "Cost-effective" means economical in terms of cost per unit of reduced emissions of greenhouse gases expressed in carbon dioxide equivalents.

SB81,4,24 (5) "Department" means the department of natural resources.

SB81,5,3 (6) "Direct emission reduction action" means an action to reduce greenhouse gas emissions taken by a greenhouse gas emission source at the greenhouse gas emission source.

SB81,5,8 (7) "Emission reduction measure" means a program, action, standard, or alternative compliance mechanism authorized under this chapter, applicable to a greenhouse gas emission source or category of greenhouse gas emission sources, that is designed to reduce greenhouse gas emissions or to remove carbon from the atmosphere.

SB81,5,10 (8) "Greenhouse gas" means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexaflouride.

SB81,5,13 (9) "Greenhouse gas emission limit" means an authorization by the department to emit up to a specified amount of greenhouse gas, expressed in carbon dioxide equivalents, during a specified year.

SB81,5,15 (10) "Greenhouse gas emission source" means a source of greenhouse gas emissions.

SB81,5,16 (11) "Market-based compliance mechanism" means any of the following:

SB81,5,18 (a) A system of market-based declining annual aggregate emission limitations for significant sources or categories of significant sources.

SB81,5,23 (b) Greenhouse gas emission exchanges, banking, credits, or other transactions, governed by rules promulgated by the department, that result in the same reduction in greenhouse gas emissions over the same period as direct compliance with a greenhouse gas emission limit or emission reduction measure adopted by the department under this chapter.

SB81,5,25 (12) "Significant source" means a greenhouse gas emission source that is identified under s. 286.03.

SB81,6,5 (13) "Statewide greenhouse gas emissions" means the total annual amount of emissions of greenhouse gases in this state plus the total annual amount of emissions of greenhouse gases from the generation of electricity outside this state that is delivered in this state, including transmission and distribution line losses, expressed in tons of carbon dioxide equivalent.

SB81,6,8 (14) "Statewide emission limit" means the maximum allowable level of statewide greenhouse gas emissions, determined by the department under s. 286.09 (1) (c), expressed in tons of carbon dioxide equivalent.

SB81,6,14 286.03 Identification of significant sources. The department shall identify those greenhouse gas emission sources and categories of greenhouse gas emission sources with emissions that are at a level of significance such that their participation in the program under this chapter will enable the department to effectively reduce greenhouse gas emissions and monitor compliance with the statewide emission limit.

SB81,6,19 286.05 Greenhouse gas emission reporting. (1) Rules. The department shall promulgate rules that require the annual reporting and verification of greenhouse gas emissions from significant sources and that provide for the monitoring and enforcement of compliance with the reporting and verification requirements.

SB81,6,21 (2) Requirements concerning rules. In the rules promulgated under sub. (1), the department shall do all of the following:

SB81,6,24 (a) Phase in the requirements to monitor and report greenhouse gas emissions beginning with the significant sources or categories of significant sources that contribute most to statewide greenhouse gas emissions.

SB81,7,4 (b) Require the monitoring and reporting of greenhouse gas emissions from the generation of electricity in this state and from the generation of electricity outside this state that is delivered in this state, including transmission and distribution line losses.

SB81,7,10 (c) To the extent appropriate and feasible, incorporate methods developed under s. 285.78 for the registration of early reductions of greenhouse gas emissions and avoid significantly altering the reporting or verification program of a significant source that registered reductions of greenhouse gas emissions under s. 285.78 before December 1, 2007, except as necessary to ensure that reporting is complete and verifiable for the purposes of compliance with this chapter.

SB81,7,12 (d) Ensure rigorous and consistent accounting of greenhouse gas emissions and provide for reporting tools and formats that ensure collection of necessary data.

SB81,7,14 (e) Ensure that significant sources maintain comprehensive records of all reported greenhouse gas emissions.

SB81,7,15 (3) Review required. The department shall do all of the following:

SB81,7,17 (a) Periodically review the requirements in rules promulgated under sub. (1) and update the rules as necessary.

SB81,7,21 (b) Review existing and proposed international, federal, and state greenhouse gas emission reporting programs and make reasonable efforts to promote consistency among the program established under this section and other programs and to streamline reporting requirements on greenhouse gas emission sources.

SB81,7,23 286.09 Statewide greenhouse gas emission limit. (1) No later than January 1, 2009, the department shall do all of the following: