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2003 - 2004 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2003 ASSEMBLY BILL 378
June 17, 2003 - Offered by Joint Committee on Finance.
AB378-ASA1,1,6
1An Act to renumber 79.005 (1);
to amend 20.835 (1) (d), 79.005 (3), 79.04 (1)
2(intro.), 79.04 (1) (a), 79.04 (1) (b) 2., 79.04 (1) (c) 1., 79.04 (1) (c) 3., 79.04 (2) (a),
379.04 (2) (am) 2. and 79.04 (4); and
to create 20.835 (1) (dm), 79.005 (1b), 79.005
4(1d), 79.005 (1f), 79.005 (2m), 79.005 (4), 79.01 (2m), 79.04 (3m), 79.04 (5), 79.04
5(6), 79.04 (7) and 196.20 (7) of the statutes;
relating to: payments to local
6governments for public utilities and making an appropriation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB378-ASA1,1,118
20.835
(1) (d)
Shared revenue account. A sum sufficient to meet the
9requirements of the shared revenue account established under s. 79.01 (2) to provide
10for the distributions from the shared revenue account to counties, towns, villages and
11cities under ss. 79.03, 79.04
(1) to (4) and 79.06.
AB378-ASA1, s. 2
12Section
2. 20.835 (1) (dm) of the statutes is created to read:
AB378-ASA1,2,2
120.835
(1) (dm)
Public utility distribution account. Beginning in 2005, a sum
2sufficient to make the payments under s. 79.04 (5), (6), and (7).
AB378-ASA1, s. 3
3Section
3. 79.005 (1) of the statutes is renumbered 79.005 (1m).
AB378-ASA1,2,75
79.005
(1b) "Alternative energy resource" means a renewable resource, as
6defined in s. 196.378 (1) (h); garbage, as defined in s. 289.01 (9); or
7nonvegetation-based industrial, commercial, or household waste.
AB378-ASA1,2,119
79.005
(1d) "Baseload electric generating facility" means an electric
10generating facility that has a capacity factor that is greater than 60%, as determined
11by the public service commission.
AB378-ASA1,2,1613
79.005
(1f) "Capacity factor" means the anticipated actual annual output of an
14electric generating facility expressed as a percentage of the facility's potential
15output. For purposes of this subchapter, the public service commission may review
16the capacity factor of an electric generating facility at any time.
AB378-ASA1,2,2018
79.005
(2m) "Power generation unit" means a complete set of electric
19generating equipment, as defined in s. 196.52 (9) (a) 1., that, collectively, is sufficient
20to generate electric power.
AB378-ASA1,2,2322
79.005
(3) "Production plant"
also includes does not include substations
and
23general structures.
AB378-ASA1,2,2525
79.005
(4) "Repowered" means any of the following:
AB378-ASA1,3,3
1(a) Replacing the boiler on an existing fossil fuel steam unit with a combustion
2turbine and heat recovery steam generator and reusing the steam turbine and heat
3rejection system.
AB378-ASA1,3,54
(b) Adding a heat recovery steam generator to a simple cycle combustion
5turbine.
AB378-ASA1,3,76
(c) Demolishing or abandoning an existing power generation unit and replacing
7it with a new power generation unit at the same site.
AB378-ASA1,3,118
(d) Replacing steam generating equipment at a combustion-based renewable
9facility, as defined in s. 196.378 (1) (g), to increase efficiency or capacity, if the facility
10remains a combustion-based renewable facility, as defined in s. 196.378 (1) (g), after
11replacing the equipment.
AB378-ASA1,3,1613
79.01
(2m) There is established an account in the general fund entitled the
14"Public Utility Distribution Account," referred to in this chapter as the "public utility
15account." There shall be appropriated to the public utility account the sums specified
16in s. 79.04 (5), (6), and (7).
AB378-ASA1, s. 11
17Section
11. 79.04 (1) (intro.) of the statutes is amended to read:
AB378-ASA1,4,318
79.04
(1) (intro.) Annually
, except for production plants that begin operation
19after December 31, 2003, or begin operation as a repowered production plant after
20December 31, 2003, the department of administration, upon certification by the
21department of revenue, shall distribute to a municipality having within its
22boundaries a production plant
or a, general structure,
including production plants
23and general structures under construction or substation, used by a light, heat, or
24power company assessed under s. 76.28 (2) or 76.29 (2), except property described in
25s. 66.0813 unless the production plant
or substation is owned or operated by a local
1governmental unit located outside of the municipality, or by an electric cooperative
2assessed under ss. 76.07 and 76.48, respectively, or by a municipal electric company
3under s. 66.0825 the amount determined as follows:
AB378-ASA1,5,25
79.04
(1) (a) An amount from the shared revenue account determined by
6multiplying by 3 mills in the case of a town, and 6 mills in the case of a city or village,
7the first $125,000,000 of the amount shown in the account, plus leased property, of
8each public utility except qualified wholesale electric companies, as defined in s.
976.28 (1) (gm), on December 31 of the preceding year for
either "production plant,
10exclusive of land
" and," "general structures
", or "work in progress" for production
11plants and general structures under construction,," and "substations," in the case of
12light, heat and power companies, electric cooperatives or municipal electric
13companies, for all property within a municipality in accordance with the system of
14accounts established by the public service commission or rural electrification
15administration, less depreciation thereon as determined by the department of
16revenue and less the value of treatment plant and pollution abatement equipment,
17as defined under s. 70.11 (21) (a), as determined by the department of revenue plus
18an amount from the shared revenue account determined by multiplying by 3 mills
19in the case of a town, and 6 mills in the case of a city or village, of the first
20$125,000,000 of the total original cost of production plant, general structures
, and
21work-in-progress substations less depreciation, land and approved waste treatment
22facilities of each qualified wholesale electric company, as defined in s. 76.28 (1) (gm),
23as reported to the department of revenue of all property within the municipality. The
24total of amounts, as depreciated, from the accounts of all public utilities for the same
25production plant is also limited to not more than $125,000,000. The amount
1distributable to a municipality
under this subsection and sub. (6) in any year shall
2not exceed $300 times the population of the municipality.
AB378-ASA1,5,104
79.04
(1) (b) 2. When a light, heat or power company no longer uses property
5described under par. (a) as production plant
, substation, or general structure in a
6municipality, the amount established under subd. 1. shall be reduced by the
7proportion that the property that is no longer used bears to the total value of all
8property described in par. (a) in the municipality. The proportion shall be determined
9according to the proportional value of the property when the light, heat or power
10company stops using the property.
AB378-ASA1,5,1812
79.04
(1) (c) 1. The payment for any municipality in which a production plant
13is located, which the public service commission certifies to the department of revenue
14will produce a nominal rated capacity of 200 megawatts or more, shall be no less than
15$75,000 annually, except that the amount distributable to a municipality in any year
16shall not exceed the per capita limit specified in par. (a).
Payments under this
17paragraph may be extended to decommissioned production plants as provided in
18subd. 3.
AB378-ASA1,6,220
79.04
(1) (c) 3. If a production plant with a nominal rated capacity of 200
21megawatts or more is decommissioned or becomes nonutility property, the $75,000
22minimum guaranteed payment under subd. 1. shall continue but diminish by $7,500
23annually, except that the minimum guaranteed payment under this subdivision
24shall cease in the year following the first year in which the property becomes taxable
25by the taxation district. In this subdivision, "nonutility property" has the meaning
1set forth in the uniform system of accounts established by the public service
2commission.
This subdivision does not apply after the distributions in 2004.
AB378-ASA1,7,124
79.04
(2) (a) Annually,
except for production plants that begin operation after
5December 31, 2003, or begin operation as a repowered production plant after
6December 31, 2003, the department of administration, upon certification by the
7department of revenue, shall distribute from the shared revenue account to any
8county having within its boundaries a production plant
or a, general structure,
9including production plants and general structures under construction or
10substation, used by a light, heat or power company assessed under s. 76.28 (2) or
1176.29 (2), except property described in s. 66.0813 unless the production plant
or
12substation is owned or operated by a local governmental unit that is located outside
13of the municipality in which the production plant
or substation is located, or by an
14electric cooperative assessed under ss. 76.07 and 76.48, respectively, or by a
15municipal electric company under s. 66.0825 an amount determined by multiplying
16by 6 mills in the case of property in a town and by 3 mills in the case of property in
17a city or village the first $125,000,000 of the amount shown in the account, plus
18leased property, of each public utility except qualified wholesale electric companies,
19as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for
either 20"production plant, exclusive of land
" and," "general structures
", or "work in progress"
21for production plants and general structures under construction,
," and
22"substations," in the case of light, heat and power companies, electric cooperatives
23or municipal electric companies, for all property within the municipality in
24accordance with the system of accounts established by the public service commission
25or rural electrification administration, less depreciation thereon as determined by
1the department of revenue and less the value of treatment plant and pollution
2abatement equipment, as defined under s. 70.11 (21) (a), as determined by the
3department of revenue plus an amount from the shared revenue account determined
4by multiplying by 6 mills in the case of property in a town, and 3 mills in the case of
5property in a city or village, of the total original cost of production plant, general
6structures
, and
work-in-progress
substations less depreciation, land and approved
7waste treatment facilities of each qualified wholesale electric company, as defined in
8s. 76.28 (1) (gm), as reported to the department of revenue of all property within the
9municipality. The total of amounts, as depreciated, from the accounts of all public
10utilities for the same production plant is also limited to not more than $125,000,000.
11The amount distributable to a county
under this subsection and sub. (6) in any year
12shall not exceed $100 times the population of the county.
AB378-ASA1, s. 17
13Section
17. 79.04 (2) (am) 2. of the statutes is amended to read:
AB378-ASA1,7,2014
79.04
(2) (am) 2. When a light, heat or power company no longer uses property
15described under par. (a) as production plant
, substation, or general structure in a
16county, the amount established under subd. 1. shall be reduced by the proportion that
17the property that is no longer used bears to the total value of all property described
18in par. (a) in the county. The proportion shall be determined according to the
19proportional value of the property when the light, heat or power company stops using
20the property.
AB378-ASA1,8,222
79.04
(3m) For purposes of determining the amount of the payments under
23subs. (1) and (2), the payments for a municipality and county in which an ash disposal
24facility that is owned and operated by an electric cooperative is operating prior to the
25effective date of this subsection .... [revisor inserts date], shall be calculated to
1include an amount that is equal to the net book value of the ash disposal facility
2multiplied by 2.
AB378-ASA1,8,104
79.04
(4) (a) Annually, in addition to the
amount amounts distributed under
5sub. (1) subs. (1), (5), (6), and (7), the department of administration shall distribute
6$50,000 to a municipality if spent nuclear fuel is stored within the municipality on
7December 31 of the preceding year. If a spent nuclear fuel storage facility is located
8within one mile of a municipality, that municipality shall receive $10,000 annually
9and the municipality where that storage facility is located shall receive $40,000
10annually.
AB378-ASA1,8,1811
(b) Annually, in addition to the
amount amounts distributed under
sub. (2) 12subs. (2), (5), (6), and (7), the department of administration shall distribute $50,000
13to a county if spent nuclear fuel is stored within the county on December 31 of the
14preceding year. If a spent nuclear fuel storage facility is located at a production plant
15located in more than one county, the payment shall be apportioned according to the
16formula under sub. (1) (c) 2., except that the formula, as it applies to municipalities
17in that subdivision, applies to counties in this paragraph. The payment under this
18paragraph may not be less than $10,000 annually.
AB378-ASA1,9,520
79.04
(5) (a) Beginning with the distributions in 2005, if property that was
21exempt from the property tax under s. 70.112 (4) and that was used to generate power
22by a light, heat, or power company, except property under s. 66.0813, unless the
23production plant is owned or operated by a local governmental unit located outside
24of the municipality, or by an electric cooperative, or by a municipal electric company
25under s. 66.0825, is decommissioned, the municipality shall be paid, from the public
1utility account, an amount calculated by subtracting an amount equal to the
2property taxes paid for that property during the current year to the municipality for
3its general operations from the following percentages of the payment that the
4municipality received under this section during the last year that the property was
5exempt from the property tax:
AB378-ASA1,9,66
1. In the first year that the property is taxable, 100%.