AB389: Bill Text

AB389,29,24 (4) If the department notifies the commission under s. 16.957 (2) (b) 2. that the department has reduced funding for energy conservation and efficiency and renewable resource programs, the commission shall reduce the amount that a utility is required to spend on programs or contribute to the fund under sub. (3) by the percentage by which the department has reduced the funding.

AB389, s. 26 Section 26. 196.378 of the statutes is created to read:

AB389,30,1 196.378 Renewable resources. (1) Definitions. In this section:

AB389,30,7 (a) "Biomass" means a resource that derives 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 nonvegetation-based industrial, commercial or household waste, except that "biomass" includes refuse-derived fuel used for a renewable facility that was in service in this state before January 1, 1998.

AB389,30,9 (b) "Conventional resource" means a resource that derives energy from coal, oil, nuclear power or natural gas, except for natural gas used in a fuel cell.

AB389,30,10 (bm) "Department" means the department of administration.

AB389,30,11 (c) "Electric provider" means an electric utility or retail electric cooperative.

AB389,30,15 (d) "Electric utility" means a public utility that sells electricity at retail. For purposes of this paragraph, a public utility is not considered to sell electricity at retail solely on the basis of its ownership or operation of a retail electric distribution system.

AB389,30,20 (e) "Excludable renewable capacity" means the portion of an electric provider's total renewable capacity that is supplied from renewable facilities that were placed in service before January 1, 1998, and that, before January 1, 1998, derived electricity from hydroelectric power, even if the output of the renewable facilities is used to satisfy requirements under federal law.

AB389,31,2 (f) "Nonsystem renewable energy" means the amount of electricity that an electric provider sells to its retail customers or members and that is supplied or allocated under executed wholesale purchase contracts from renewable facilities that are not owned or operated by the electric provider. "Nonsystem renewable energy" does not include any electricity that is not used to satisfy the electric provider's retail load obligations.

AB389,31,8 (g) "Renewable facility" means an installed and operational electric generating facility in which energy is derived from a renewable resource. "Renewable facility" includes a facility the installation or operation of which is required under federal law, but does not include a facility the installation or operation of which is required under the laws of another state even if the installation or operation of the facility is also required under federal law.

AB389,31,9 (h) "Renewable resource" means any of the following:

AB389,31,10 1. A resource that derives electricity from any of the following:

AB389,31,11 a. A fuel cell that uses, as determined by the commission, a renewable fuel.

AB389,31,12 b. Tidal or wave action.

AB389,31,13 c. Solar thermal electric or photovoltaic energy.

AB389,31,14 d. Wind power.

AB389,31,15 e. Geothermal technology.

AB389,31,16 g. Biomass.

AB389,31,18 1m. A resource with a capacity of less than 60 megawatts that derives electricity from hydroelectric power.

AB389,31,20 2. Any other resource, except a conventional resource, that the commission designates as a renewable resource in rules promulgated under sub. (4).

AB389,31,22 (i) "Renewable resource credit" means a credit calculated in accordance with rules promulgated under sub. (3) (a).

AB389,31,23 (j) "Resource" means a source of electric power generation.

AB389,32,3 (k) "Retail electric cooperative" means a cooperative association organized under ch. 185 that sells electricity at retail to its members only. For purposes of this paragraph, a cooperative association is not considered to sell electricity at retail solely on the basis of its ownership or operation of a retail electric distribution system.

AB389,32,6 (n) "System renewable energy" means the amount of electricity that an electric provider sells to its retail customers or members and that is supplied by renewable facilities owned or operated by the electric provider.

AB389,32,8 (o) "Total renewable energy" means the sum of an electric provider's system and nonsystem renewable energy.

AB389,32,12 (2) Renewable resource energy. (a) Each electric provider shall provide to its retail electric customers or members total renewable energy in at least the following percentages of its total retail energy sales, either directly or through renewable resource credits from another electric provider:

AB389,32,13 1. By December 31, 2000, 0.5%.

AB389,32,14 2. By December 31, 2002, 0.85%.

AB389,32,15 3. By December 31, 2004, 1.2%.

AB389,32,16 4. By December 31, 2006, 1.55%.

AB389,32,17 5. By December 31, 2008, 1.9%.

AB389,32,18 6. By December 31, 2010, 2.2%.

AB389,32,19 (b) For purposes of determining compliance with par. (a):

AB389,32,21 1. Total retail energy sales shall be calculated on the basis of an average of an electric provider's retail energy sales in this state during the prior 3 years.

AB389,33,2 2. The amount of electricity supplied by a renewable facility in which biomass and conventional fuels are fired together shall be equal to the product of the maximum amount of electricity that the facility is capable of generating and the ratio of the British thermal unit content of the biomass fuels to the British thermal unit content of both the biomass and conventional resource fuels.

AB389,33,5 3. Any excludable renewable energy that exceeds 0.6% of an electric provider's total retail energy sales shall be excluded from the electric provider's total renewable energy.

AB389,33,11 (c) No later than April 15 annually, an electric provider shall submit a report to the department that describes the electric provider's compliance with par. (a). Reports under this paragraph may include certifications from wholesale suppliers regarding the sources and amounts of energy supplied to an electric provider. The department may specify the documentation that is required to be included with reports submitted under this paragraph.

AB389,33,16 (d) The commission shall allow an electric utility to recover from ratepayers the cost of providing total renewable energy to its retail customers or members in amounts that equal or exceed the percentages specified in par. (a). Subject to any approval of the commission that is necessary, an electric utility may recover costs under this paragraph by any of the following methods:

AB389,33,18 1. Allocating the costs equally to all customers or members on a kilowatt-hour basis.

AB389,33,20 2. Establishing alternative price structures, including price structures under which customers or members pay a premium for renewable energy.

AB389,33,21 3. Any combination of the methods specified in subds. 1. and 2.

AB389,33,22 (e) 1. This subsection does not apply to any of the following:

AB389,33,24 a. An electric provider that provides more than 10% of its summer peak demand in this state from renewable facilities.

AB389,34,2 b. An electric provider that provides more than 10% of its summer peak demand from renewable resources.

AB389,34,5 2. For purposes of calculating the percentages under subd. 1., an electric provider may include renewable facilities located in this or another state and renewable facilities located on its or another electric provider's system.

AB389,34,9 3. Notwithstanding subd. 1., this subsection applies to an electric provider unless the electric provider provides documentation to the commission that establishes, to the satisfaction of the commission, that the electric provider satisfies the requirements under subd. 1. a. or b.

AB389,34,18 (3) Renewable resource credits. (a) An electric provider that provides total renewable energy to its retail electric customers or members in excess of the percentages specified in sub. (2) (a) 1. to 6. may, in the applicable year, sell to any other electric provider a renewable resource credit or a portion of a renewable resource credit at any negotiated price. Alternatively, an electric provider may use a renewable resource credit or portion of a renewable resource credit in a subsequent year to establish compliance with sub. (2) (a). The commission shall promulgate rules that establish requirements for calculating the amount of a renewable resource credit.

AB389,34,20 (b) The commission may promulgate rules that establish requirements and procedures for a sale under par. (a).

AB389,34,23 (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. and 1m.

AB389,35,5 (5) Penalty. Any person who violates sub. (2) or any wholesale supplier who provides an electric provider with a false or misleading certification regarding the sources or amounts of energy supplied to the electric provider shall forfeit not less than $5,000 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:

AB389,35,7 (a) The appropriateness of the forfeiture to the person's or wholesale supplier's volume of business.

AB389,35,8 (b) The gravity of the violation.

AB389,35,10 (c) Whether a violation of sub. (2) is due to circumstances beyond the violator's control.

AB389, s. 27 Section 27. 196.485 (title) of the statutes is repealed and recreated to read:

AB389,35,12 196.485 (title) Transmission system requirements.

AB389, s. 28 Section 28. 196.485 (1) (am) of the statutes is created to read:

AB389,35,16 196.485 (1) (am) "Contribute a transmission facility" means to divest a person's interest in the transmission facility and to transfer ownership of the transmission facility and associated deferred tax reserves to another person.

AB389, s. 29 Section 29. 196.485 (1) (be) of the statutes is created to read:

AB389,35,20 196.485 (1) (be) "Director" means, with respect to a transmission company organized as a corporation under ch. 180, a member of the board of directors of the transmission company.

AB389, s. 30 Section 30. 196.485 (1) (bs) of the statutes is created to read:

AB389,35,22 196.485 (1) (bs) "Electric utility" has the meaning given in s. 196.491 (1) (d).

AB389, s. 31 Section 31. 196.485 (1) (dm) (intro.) of the statutes is amended to read:

AB389,35,24 196.485 (1) (dm) (intro.) "Independent transmission owner" means:

AB389,35,25 1m. Means a person that satisfies each of the following:

AB389, s. 32 Section 32. 196.485 (1) (dm) 1. of the statutes is renumbered 196.485 (1) (dm) 1m. a.

AB389, s. 33 Section 33. 196.485 (1) (dm) 2. of the statutes is created to read:

AB389,36,4 196.485 (1) (dm) 2. Does not include the transmission company.

AB389, s. 34 Section 34. 196.485 (1) (dm) 3. of the statutes is renumbered 196.485 (1) (dm) 1m. b. and amended to read:

AB389,36,8 196.485 (1) (dm) 1m. b. The person is not an affiliated interest of a person specified in subd. 1. 1m. a.

AB389, s. 35 Section 35. 196.485 (1) (do) of the statutes is created to read:

AB389,36,12 196.485 (1) (do) "Land right" means any right in real property, including fee simple ownership or a right-of-way or easement, that has been acquired for a transmission facility that is located or intended to be located on the real property.

AB389, s. 36 Section 36. 196.485 (1) (dq) of the statutes is created to read:

AB389,36,16 196.485 (1) (dq) "Manager" means, with respect to a transmission company organized as a limited liability company under ch. 183, a manager, as defined in s. 183.0102 (13), of the transmission company.

AB389, s. 37 Section 37. 196.485 (1) (dr) of the statutes is created to read:

AB389,36,20 196.485 (1) (dr) "Merger enforcement policy" means the enforcement policy of the federal department of justice and the federal trade commission regarding horizontal acquisitions and mergers that are subject to 15 USC 1, 18 or 45.

AB389, s. 38 Section 38. 196.485 (1) (ds) of the statutes is created to read:

AB389,36,25 196.485 (1) (ds) "Midwest independent system operator" means the independent system operator the establishment of which the federal energy regulatory commission has conditionally authorized in an order issued on September 16, 1998, or the successor to such independent system operator.

AB389, s. 39 Section 39. 196.485 (1) (dt) of the statutes is created to read:

AB389,37,3 196.485 (1) (dt) "Nontransmission utility security holder" means a security holder that is not a transmission utility security holder.

AB389, s. 40 Section 40. 196.485 (1) (dv) of the statutes is created to read:

AB389,37,10 196.485 (1) (dv) "Organizational start-up date" means, with respect to a transmission company that is organized as a limited liability company under ch. 183, the date on which the articles of organization become effective under s. 183.0111 or, with respect to a transmission company that is organized as a corporation under ch. 180, the date on which the articles of incorporation become effective under s. 180.0123.

AB389, s. 41 Section 41. 196.485 (1) (em) of the statutes is created to read:

AB389,37,13 196.485 (1) (em) "Retail electric cooperative" means a cooperative that provides retail electric service to its members.

AB389, s. 42 Section 42. 196.485 (1) (fe) of the statutes is created to read:

AB389,37,18 196.485 (1) (fe) "Security" means, with respect to a transmission company organized as a corporation under ch. 180, a share, as defined in s. 180.0103 (15), and, with respect to a transmission company organized as a limited liability company under ch. 183, a limited liability company interest, as defined in s. 183.0102 (11).

AB389, s. 43 Section 43. 196.485 (1) (ge) of the statutes is created to read:

AB389,38,2 196.485 (1) (ge) "Transmission company" means a corporation organized under ch. 180 or a limited liability company organized under ch. 183 that has as its sole purpose the planning, constructing, operating, maintaining and expanding of transmission facilities that it owns to provide for an adequate and reliable transmission system that meets the needs of all users that are dependent on the transmission system and that supports effective competition in energy markets without favoring any market participant.

AB389, s. 44 Section 44. 196.485 (1) (gm) of the statutes is created to read: