SB517: Bill Text

Under this bill, a certain percentage of the electricity generated by a public utility or retail cooperative association must be generated from renewable energy resources. The percentage is calculated on the basis of a public utility's or retail cooperative association's "system peak load share", which is defined as the amount of electricity that the public utility or retail cooperative association delivered to its customers or members at that time during the summer of 1996 that the maximum amount of electricity was delivered to all customers and members of all public utilities and retail cooperative associations. The following percentages of a public utility's or retail cooperative association's system peak load share must be generated from renewable resources: 1% by December 31, 2000; 1.5% by December 31, 2002; 2% by December 31, 2004; 2.5% by December 31, 2006; 3% by December 31, 2008; and 4% by December 31, 2010.

The bill allows a municipal public utility or retail cooperative association to receive a credit for the amount of electricity generated from renewable resources by its wholesale supplier. In addition, the bill allows public utilities and retail cooperative associations to purchase credits from other public utilities and retail cooperative associations that generate electricity from renewable resources in excess of the required percentages of system peak load share. A public utility or retail cooperative association that purchases such a credit may use the credit for purposes of determining whether it satisfies a required percentage. The PSC must promulgate rules establishing requirements and procedures for sales of such credits.

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:

SB517, s. 1 Section 1. 15.07 (1) (a) 7. of the statutes is created to read:

SB517,4,4 15.07 (1) (a) 7. Members of the public benefits and energy assistance board appointed under s. 15.792 (1) (b) or (c) shall be appointed as provided in s. 15.792 (1) (b) or (c) without senate confirmation.

SB517, s. 2 Section 2. 15.07 (1) (d) of the statutes is created to read:

SB517,4,8 15.07 (1) (d) Except as provided in s. 15.792 (1) (b) 5. or 8. or (c), no member appointed to the public benefits and energy assistance board may be an employe of a utility, as defined in 196.374 (1).

SB517, s. 3 Section 3. 15.792 of the statutes is created to read:

SB517,4,11 15.792 Same; attached board. Public benefits and energy assistance board. (1) (a) In this subsection:

SB517,4,12 1. "Electric utility" has the meaning given in s. 196.96 (1) (f).

SB517,4,13 2. "Low-income household" has the meaning given in s. 196.96 (1) (L).

SB517,4,14 3. "Municipal utility" has the meaning given in s. 196.96 (1) (p).

SB517,5,1 4. "Renewable resource" has the meaning given in s. 196.378 (1) (g).

SB517,5,2 5. "Retail cooperative" has the meaning given in s. 196.96 (1) (r).

SB517,5,3 6. "Small business" has the meaning given in s. 16.75 (4) (c).

SB517,5,5 7. "Small business representative" means a director, manager, member, officer, owner or partner of a small business.

SB517,5,8 (b) There is created a public benefits and energy assistance board that is attached to the public service commission under s. 15.03. The board shall consist of the following members appointed for 3-year terms:

SB517,5,10 1. One member appointed by the governor who is a member of a low-income household or who represents a low-income household advocacy group.

SB517,5,13 2. One member appointed by the president of the senate who is a residential electric utility customer or who represents a residential electric utility customer advocacy group.

SB517,5,15 3. One member appointed by the governor who is a small business representative or who represents a small business advocacy group.

SB517,5,17 4. One member appointed by the president of the senate who represents an environmental or renewable resource advocacy group.

SB517,5,20 5. One member appointed by the president of the senate who represents of a municipal utility or retail cooperative or municipal utility or retail cooperative advocacy group.

SB517,5,22 6. One member appointed by the speaker of the assembly who is a member of a low-income household or who represents a low-income household advocacy group.

SB517,5,24 7. One member appointed by the speaker of the assembly who represents an environmental or renewable resource advocacy group.

SB517,6,2 8. One member appointed by the speaker of the assembly who represents an electric utility or electric utility advocacy group.

SB517,6,4 9. One member appointed by the chairperson of the public service commission to represent the public service commission.

SB517,6,6 10. One member appointed by the secretary of natural resources to represent the department of natural resources.

SB517,6,8 11. One member appointed by the administrator of the division of housing in the department of administration to represent the division of housing.

SB517,6,17 (c) 1. a. Notwithstanding par. (b) (intro.) and 5., if fewer than one-third of the municipal utilities and retail cooperatives doing business in this state notify the board under s. 196.96 (5) (b) 1. that they have elected not to contribute to any of the programs established under s. 196.96 (2) (a) or (b), the president of the senate shall appoint a representative of an electric utility or electric utility advocacy group to succeed the member appointed under par. (b) 5. and the member appointed under par. (b) 5. shall vacate his or her membership at the time that the member is appointed under this subd. 1. a. A member appointed under this subd. 1. a. shall serve on the board until a member is appointed under subd. 2.

SB517,6,23 b. If one-third or more of the municipal utilities and retail cooperatives doing business in this state notify the board under s. 196.96 (5) (b) 1. that they have elected to contribute to any of the programs established under s. 196.96 (2) (a) or (b), the member appointed under par. (b) 5. shall serve for a term expiring on the first day of the 48th month beginning after the effective date of this subd. 1. b. .... [revisor inserts date].

SB517,7,4 2. a. If one-third or more of the municipal utilities and retail cooperatives doing business in this state notify the board under s. 196.96 (5) (b) 2. that they have elected to contribute to any of the programs established under s. 196.96 (2) (a) or (b), the president of the senate shall appoint one member to the board who is a representative of a municipal utility or retail cooperative or municipal utility or retail cooperative advocacy group for a 3-year term.

SB517,7,10 b. Notwithstanding par. (b) (intro.) or 5., if fewer than one-third of the municipal utilities and retail cooperatives doing business in this state notify the board under s. 196.96 (5) (b) 2. that they have elected not to contribute to any of the programs established under s. 196.96 (2) (a) or (b), the president of the senate shall appoint a member to the board who is a representative of an electric utility or electric utility advocacy group for a 3-year term.

SB517, s. 4 Section 4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB517, s. 5 Section 5. 20.155 (1m) of the statutes is created to read:

SB517,7,17 20.155 (1m) Public benefits and energy assistance board. (q) General program operations. From the public benefits and energy assistance fund, a sum sufficient for general program operations of the public benefits and energy assistance board.

SB517,7,20 (r) Grants. From the public benefits and energy assistance fund, a sum sufficient for low-income assistance grants under s. 196.96 (2) (a) and energy conservation and efficiency and renewable resource grants under s. 196.96 (2) (b).

SB517,8,3 (s) Compensation of intervenors. From the public benefits and energy assistance fund, the amounts in the schedule for compensating persons who intervene in hearings under the rules promulgated under s. 196.96 (2) (e) 3.

SB517, s. 6 Section 6. 25.17 (1) (kx) of the statutes is created to read:

SB517,8,5 25.17 (1) (kx) Public benefits and energy assistance fund (s. 25.96);

SB517, s. 7 Section 7. 25.96 of the statutes is created to read:

SB517,8,10 25.96 Public benefits and energy assistance fund. There is established a separate nonlapsible trust fund designated as the public benefits and energy assistance fund, consisting of the access fees received under s. 196.96 (4) (a) and (5) (c) and (d) and contributions received under s. 196.96 (2) (f) and (g).

SB517, s. 8 Section 8. 196.374 (1) of the statutes is amended to read:

SB517,8,19 196.374 (1) In this section, "utility" means a class A gas or electric utility, as defined by the commission. Every utility shall spend annually at least 0.5% of its total annual operating revenues the amount specified in s. 196.96 (4) (d) 1. on programs designed to promote and accomplish energy conservation. The commission may require a utility to spend annually, for the purpose of promoting and accomplishing energy conservation, an amount which is more or less than 0.5% of its annual operating revenues if, after notice and hearing, the commission finds that the expenditure of such amount is in the public interest.

SB517, s. 9 Section 9. 196.374 (4) of the statutes is created to read:

SB517,8,21 196.374 (4) This section does not apply after June 30, 2002.

SB517, s. 10 Section 10. 196.378 of the statutes is created to read:

SB517,8,23 196.378 Renewable resources. (1) Definitions. In this section:

SB517,9,2 (a) "Biomass" means a resource that generates energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or industrial, commercial or household waste.

SB517,9,4 (b) "Capacity" means the amount of electricity that an electric or gas provider is capable of delivering to its customers or members at a specified time.

SB517,9,6 (c) "Conventional resource" means a resource that generates energy from coal, oil, nuclear power or natural gas, except for natural gas used in a fuel cell.

SB517,9,8 (d) "Electric or gas provider" means an electric or gas utility or retail cooperative.

SB517,9,10 (e) "Electric or gas utility" means a public utility that generates, transmits, delivers or furnishes electricity or gas.

SB517,9,12 (f) "Municipal utility" means an electric or gas utility that is owned or operated wholly by a municipality.

SB517,9,13 (g) "Renewable resource" means any of the following:

SB517,9,14 1. A resource that generates energy from any of the following:

SB517,9,15 a. A fuel cell that uses, as determined by the commission, a renewable fuel.

SB517,9,16 b. Tidal action.

SB517,9,17 c. Solar photovoltaic energy.

SB517,9,18 d. Wind power.

SB517,9,19 e. Geothermal technology.

SB517,9,20 f. Hydroelectric power.

SB517,9,21 g. Biomass.

SB517,9,23 2. Any other resource, except a conventional resource, that the commission designates as a renewable resource in rules promulgated under sub. (4).

SB517,10,3 (h) "Renewable resource credit" means a percentage by which an electric or gas provider's renewable resource percentage exceeds a percentage of the electric or gas provider's system peak load share specified in sub. (2) (a) 1. to 6.

SB517,10,5 (i) "Renewable resource percentage" means the percentage of an electric or gas provider's capacity that is generated from renewable resources.

SB517,10,6 (j) "Resource" means a source of electric power generation.

SB517,10,8 (k) "Retail cooperative" means a cooperative association organized under ch. 185 for the purpose of providing electricity or gas at retail to its members only.

SB517,10,11 (L) "System peak load" means the maximum amount of electricity that was delivered to all customers or members of all electric or gas providers at any one time during the period from May 1, 1996, to September 15, 1996.

SB517,10,15 (m) "System peak load share" means the amount of electricity that was delivered to all customers or members of an electric or gas provider by the electric or gas provider at the time that the system peak load was delivered to all customers or members of all electric or gas providers.

SB517,10,18 (2) Renewable resource percentages. (a) The renewable resource percentage of an electric or gas provider, as calculated under par. (b), shall be at least the following percentages of the electric or gas provider's system peak load share:

SB517,10,19 1. By December 31, 2000, 1%.

SB517,10,20 2. By December 31, 2002, 1.5%.

SB517,10,21 3. By December 31, 2004, 2%.

SB517,10,22 4. By December 31, 2006, 2.5%.

SB517,10,23 5. By December 31, 2008, 3%.

SB517,10,24 6. By December 31, 2010, 4%.

SB517,11,2 (b) In calculating an electric or gas provider's renewable resource percentage under par. (a), each of the following applies:

SB517,11,6 1. Any amount of capacity that is generated from hydroelectric power and that is more than 1% of the electric or gas provider's system peak load share may not be counted as part of the provider's capacity that is generated from renewable resources.

SB517,11,10 1g. An electric or gas provider may not count as part of the provider's capacity that is generated from renewable resources any capacity that the electric provider is required, as determined by the commission, to generate from renewable resources under the law of another state.

SB517,11,13 1r. An electric or gas provider may count as part of the provider's capacity that is generated from renewable resources only that capacity which is installed and rated on the basis of periodic tests.

SB517,11,16 2. The amount of any renewable resource credit purchased by the electric or gas provider under sub. (3) may be counted as part of the provider's capacity that is generated from renewable resources.

SB517,11,20 3. For a municipal utility or retail cooperative, the amount of any capacity that the municipal utility or retail cooperative purchases at wholesale and that is generated from renewable resources may be counted as part of the provider's capacity that is generated from renewable resources.

SB517,12,2 (3) Renewable resource credits. An electric or gas provider that has a renewable resource percentage that is more than the percentage of the electric or gas provider's system peak load share specified in sub. (2) (a) 1. to 6. for the applicable year may sell to any other electric or gas provider a renewable resource credit or a portion of a renewable resource credit. The commission may promulgate rules that establish requirements and procedures for a sale under this subsection.

SB517,12,5 (4) Rules. The commission may promulgate rules that designate a resource, except for a conventional resource, as a renewable resource in addition to the resources specified in sub. (1) (g) 1.

SB517,12,10 (5) Penalty. Any person who violates sub. (2) (a) shall forfeit no less than $10,000 nor more than $500,000. Forfeitures under this subsection shall be enforced by action on behalf of the state by the attorney general. A court imposing a forfeiture under this subsection shall consider all of the following in determining the amount of the forfeiture:

SB517,12,12 (a) The appropriateness of the forfeiture to the volume of business of the electric or gas provider.

SB517,12,13 (b) The gravity of the violation.