SB459: Bill Text

SB459, s. 87 Section 87. 196.374 (2) (title) of the statutes is created to read:

SB459,29,16 196.374 (2) (title) Class a utility spending.

SB459, s. 88 Section 88. 196.374 (2) (intro.) of the statutes is amended to read:

SB459,29,19 196.374 (2) (intro.) The commission shall determine the amount that each Class A utility spent in 1998 on programs for each of the following:

SB459, s. 89 Section 89. 196.374 (3) of the statutes is amended to read:

SB459,30,14 196.374 (3) Class a utility contributions. In 2000, 2001 and 2002, the commission shall require each utility to spend a decreasing portion of the amount determined under sub. (2) on programs specified in sub. (2) and contribute the remaining portion of the amount to the commission for deposit in the fund. In each year after 2002, each The commission shall require each Class A utility shall to contribute pay the entire amount determined under sub. (2) (a) to the commission fiscal agent for deposit in the fund for the purpose of funding low-income assistance programs that receive grants under s. 16.957 (2) (b).. The commission shall ensure in rate-making orders that a utility recovers from its ratepayers the amounts spent on programs or contributed to the fund under this subsection. The commission shall allow each utility the option of continuing to use, until January 1, 2002, the moneys that it has recovered under s. 196.374 (3), 1997 stats., to administer the programs that it has funded under s. 196.374 (1), 1997 stats. The commission shall require each Class A utility to pay the entire amount determined under sub. (2) (b), (c), and (d) to the fiscal agent for the purpose of funding energy efficiency and renewable resource programs that receive grants under s. 16.957 (2) (b). The commission may allow each Class A utility to spend additional moneys on the programs specified in sub. (2) if the Class A utility otherwise complies with the requirements of this section and s. 16.957 (4).

SB459, s. 90 Section 90. 196.374 (3m) of the statutes is created to read:

SB459,30,24 196.374 (3m) Commission duties. (a) In general. 1. The commission shall be responsible for evaluating and setting goals, measurable targets, and funding levels for energy efficiency and renewable resource programs that receive grants under s. 16.957 (2) (b). For planning purposes, the commission may set goals and funding levels for such programs for multiple years. The commission shall cooperate with the department in the administration of such programs and shall oversee the measurement and evaluation of such programs. The commission shall enter into a written agreement with the department for specifying and coordinating their respective powers and duties under this section and s. 16.957.

SB459,31,4 2. In setting a funding level for a fiscal year for energy efficiency and renewable resource programs that receive grants under s. 16.957 (2) (b), the commission shall set a level that is equal to the amount of revenue that would be generated for that fiscal year in public benefits under s. 16.957 (4) (c) 2., 2003 stats.

SB459,31,6 3. The commission shall oversee public benefits programs that are administered by electric utilities under sub. (3) or par. (d).

SB459,31,7 4. The commission shall contract with a private entity to act as a fiscal agent.

SB459,31,14 (b) Audits; reports. The commission shall contract with one or more independent auditors to annually prepare a financial and program audit of the programs specified in par. (a) 1. The purpose of the program audit shall be to evaluate the programs and measure the performance of the programs against the goals and targets set by the commission under par. (a) 1. The commission shall submit annual reports to the legislature under s. 13.172 (2) that describe the results of the audits.

SB459,31,19 (c) Collections. 1. `Low-income assistance programs.' In each fiscal year, the commission shall require all electric utilities to collect from ratepayers and pay to the fiscal agent the amount determined by the department under s. 16.957 (2) (am), for the purpose of funding low-income assistance programs that receive grants under s. 16.957 (2) (a).

SB459,32,4 2. `Other public benefits programs.' The commission shall determine the amount that all electric utilities must collect from ratepayers in a fiscal year for the purpose of funding energy efficiency and renewable resource programs that receive grants under s. 16.957 (2) (b). Except as provided in par. (d), in each fiscal year, each electric utility shall pay to the fiscal agent the electric utility's portion, as determined by the commission, of the amount determined by the commission under this subdivision. Except as provided in par. (d), an electric utility that makes payments to the fiscal agent under this subdivision is not responsible for the management or disposition of moneys that the electric utility is required to collect under this subdivision.

SB459,32,7 3. `Other collections.' In each fiscal year, the commission shall require all electric utilities to collect from ratepayers and pay to the fiscal agent all of the following:

SB459,32,9 a. The amount certified in that fiscal year by the department under s. 16.75 (12) (e) 2. or $1,000,000, whichever is less.

SB459,32,12 b. The amount to which the fiscal agent is entitled, as specified in the fiscal agent's contract with the commission, for reimbursement of the reasonable expenses incurred in acting as the fiscal agent.

SB459,32,15 4. `Commission determinations.' The commission shall determine the portion of the amounts specified in this paragraph that each electric utility is required to collect from ratepayers and pay to the fiscal agent.

SB459,32,22 (d) Electric utility energy efficiency programs. 1. The commission may allow an electric utility to retain a portion of the amount that the electric utility is otherwise required to pay to the fiscal agent under par. (c) 2. if the electric utility expends that portion to fund energy efficiency programs administered by the electric utility within the electric utility's service territory for commercial, industrial, or agricultural customers if the commission determines that the expenditure is in the public interest and that the energy efficiency program satisfies all of the following:

SB459,32,24 a. The energy efficiency program has specific savings targets and performance goals approved by the commission.

SB459,32,25 b. The energy efficiency program is subject to evaluation by the commission.

SB459,33,2 c. Services under the energy efficiency program are provided through 3rd-party market providers on a nondiscriminatory basis.

SB459,33,5 2. The commission may allow an electric utility to spend additional moneys on energy efficiency programs if the electric utility otherwise complies with the requirements of this section and s. 16.957.

SB459, s. 91 Section 91. 196.374 (3r) of the statutes is created to read:

SB459,33,13 196.374 (3r) Fiscal agent duties. The fiscal agent shall collect low-income assistance funding required by the commission under sub. (3) or (3m) (c) 1. and the amounts required under sub. (3m) (c) 3. a. and deposit the moneys into the utility public benefits fund. The fiscal agent shall hold funding for other public benefits programs received under s. 16.957 (2) (c) 4. or (5) (c) or (d) 2. a. or sub. (3) or (3m) (c) 2. in trust exclusively for the payment of grants under s. 16.597 (2) (b) as directed by the department.

SB459, s. 92 Section 92. 196.374 (4) of the statutes is repealed.

SB459, s. 93 Section 93. 196.374 (4m) of the statutes is created to read:

SB459,33,19 196.374 (4m) Equitable funding. In carrying out its duties under sub. (3m), the commission shall ensure that the requirements for funding energy efficiency and renewable resource programs are equitably divided among electric utilities so that similarly situated ratepayers contribute equivalent amounts for the programs.

SB459, s. 94 Section 94. 196.374 (5) of the statutes is created to read:

SB459,33,25 196.374 (5) Rate-making; accounting. The commission shall ensure in rate-making orders that an electric utility recovers from its ratepayers the amounts the electric utility is required to pay to the fiscal agent or expend on its own programs under this section. The commission may prescribe the accounting treatment of electric utility expenditures, including the use of any escrow accounting.

SB459, s. 95 Section 95. 196.374 (7) of the statutes is created to read:

SB459,34,7 196.374 (7) State energy policy. The commission's actions under this section are considered to satisfy the requirements of s. 1.12 (2), (3) (a), and (4) (a), and the requirements of s. 1.12 (5) that relate to conservation or efficient use of electric power. An electric utility's application under s. 196.49 or 196.491 (3) is not subject to the requirements of s. 196.025 (1) relating to energy conservation or efficiency if the electric utility has complied with the requirements of this section.

SB459, s. 96 Section 96. 196.378 (1) (a) of the statutes is amended to read:

SB459,34,14 196.378 (1) (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.

SB459, s. 97 Section 97. 196.378 (1) (bm) of the statutes is repealed.

SB459, s. 98 Section 98. 196.378 (1) (e) of the statutes is repealed.

SB459, s. 99 Section 99. 196.378 (1) (fm) of the statutes is created to read:

SB459,34,21 196.378 (1) (fm) "Renewable energy percentage" means, with respect to an electric provider for a particular year, the percentage that results from dividing the sum of the following by the total amount of electricity that the electric provider sold to retail customers or members for that year:

SB459,34,22 1. The electric provider's total renewable energy for that year.

SB459,34,24 2. The renewable resource credits created or purchased by the electric provider, if any, that the electric provider elects to use in that year.

SB459,35,2 3. The renewable resource credits, if any, allocated to the electric provider for that year under the rules promulgated under sub. (3) (a) 1.

SB459, s. 100 Section 100. 196.378 (1) (g) of the statutes is amended to read:

SB459,35,9 196.378 (1) (g) "Renewable facility" means an installed and operational electric generating facility, located in or outside this state, in which electricity 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.

SB459, s. 101 Section 101. 196.378 (1) (i) of the statutes is amended to read:

SB459,35,12 196.378 (1) (i) "Renewable resource credit" means a credit calculated in accordance with rules promulgated under sub. (3) (a) 1. and 2.

SB459, s. 102 Section 102. 196.378 (1) (n) of the statutes is renumbered 196.378 (1) (n) (intro.) and amended to read:

SB459,35,17 196.378 (1) (n) (intro.) "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 any of the following:

SB459,35,18 1. Renewable facilities owned or operated by the electric provider.

SB459, s. 103 Section 103. 196.378 (1) (n) 2. of the statutes is created to read:

SB459,35,21 196.378 (1) (n) 2. If the electric provider is part of an interconnected multistate system that serves this state, renewable facilities that are within that system.

SB459, s. 104 Section 104. 196.378 (2) (a) of the statutes is repealed and recreated to read:

SB459,36,4 196.378 (2) (a) 1. Except as provided in par. (e), by December 31, 2010, each electric provider shall increase its renewable energy percentage so that it is at least 2 percentage points above the electric provider's renewable energy percentage for 2004 reported under par. (c). Except as provided in par. (e), by December 31, 2015, each electric provider shall increase its renewable energy percentage so that it is at least 6 percentage points above the electric provider's renewable energy percentage for 2004 reported under par. (c).

SB459,36,7 2. Except as provided in par. (e), by December 31, 2015, the renewable energy percentage for each electric provider shall be sufficient to ensure that the average renewable energy percentage of all electric providers is at least 10 percent.

SB459, s. 105 Section 105. 196.378 (2) (b) 3. of the statutes is repealed.

SB459, s. 106 Section 106. 196.378 (2) (c) of the statutes is amended to read:

SB459,36,24 196.378 (2) (c) No later than April 15 annually, or another annual date specified by the commission by rule, an electric provider shall submit a report to the department commission that identifies the electric provider's renewable energy percentage for the previous year and describes the electric provider's compliance with par. (a) and the electric provider's implementation plans for future compliance. Reports under this paragraph may include certifications from wholesale suppliers regarding the sources and amounts of energy supplied to an electric provider. The department commission may specify the documentation that is required to be included with reports submitted under this paragraph. The commission may require that electric providers submit the reports in a proceeding, initiated by the commission under this section relating to the implementation of s. 1.12, or in a proceeding for preparing a strategic energy assessment under s. 196.491 (2). No later than 90 days after the commission's receipt of an electric provider's report, the commission shall inform the electric provider whether the electric provider is in compliance with par. (a).

SB459, s. 107 Section 107. 196.378 (2) (e) of the statutes is repealed and recreated to read:

SB459,37,4 196.378 (2) (e) An electric provider may request that the commission grant a delay for complying with a deadline specified in par. (a) if, after notice and opportunity to be heard, the electric provider demonstrates good faith efforts to comply with the deadline and the electric provider demonstrates any of the following:

SB459,37,7 1. Notwithstanding reasonable efforts to protect against undesirable impacts on the reliability of an electric provider's system, compliance with the deadline will have an undesirable impact on the reliability of the electric provider's system.

SB459,37,11 2. Notwithstanding reasonable efforts to protect against excessive increases in rates of the electric provider's ratepayers, compliance with the deadline will result in excessive increases in rates of the electric provider's ratepayers, including increases that are due to discontinuation of federal renewable energy tax credits.

SB459,37,14 3. Notwithstanding reasonable efforts to obtain required approvals, the electric provider or a supplier has experienced or will experience delays in receiving required siting or permitting approvals for renewable energy projects.

SB459,37,18 4. Notwithstanding reasonable efforts to secure transmission service, the electric provider faces transmission constraints that interfere with the economic and reliable delivery of electricity derived from renewable resources to the electric provider's system.

SB459, s. 108 Section 108. 196.378 (3) (a) of the statutes is renumbered 196.378 (3) (a) 1. and amended to read:

SB459,38,11 196.378 (3) (a) 1. An Subject to subd. 2., 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, create a renewable resource credit and sell to any other electric provider a the renewable resource credit or a portion of a the renewable resource credit at any negotiated price. Alternatively, an An electric provider that creates or purchases a renewable resource credit or portion may use a renewable resource the credit or portion of a renewable resource credit in a subsequent year, as provided under par. (c), to establish compliance with sub. (2) (a). The commission shall promulgate rules that establish requirements for the creation and use of a renewable resource credit, including calculating the amount of a renewable resource credit. The commission shall also promulgate rules that allow a wholesale customer of an electric provider to use an allocated portion of a credit, which is created or purchased by the electric provider, to establish compliance with sub. (2) (a), but only if the cost of renewable resources is included in wholesale rates paid by the wholesale customer. The rules shall specify the manner for making such an allocation.

SB459, s. 109 Section 109. 196.378 (3) (a) 2. of the statutes is created to read:

SB459,38,18 196.378 (3) (a) 2. The commission shall promulgate rules for calculating the amount of a renewable resource credit that is created from a renewable facility placed into service before January 1, 2004. The rules shall provide that the amount of a renewable resource credit created from such a renewable facility after January 1, 2004, is limited to the incremental increase in output from the renewable facility that is due to capacity improvements made after January 1, 2004.

SB459, s. 110 Section 110. 196.378 (3) (b) of the statutes is amended to read:

SB459,38,21 196.378 (3) (b) The commission may promulgate rules that establish requirements and procedures for a sale under par. (a) 1.

SB459, s. 111 Section 111. 196.378 (3) (c) of the statutes is created to read:

SB459,39,4 196.378 (3) (c) A renewable resource credit created under s. 196.378 (3) (a), 2003 stats., may not be used after December 31, 2011. A renewable resource credit created under par. (a) 1. or 2., as affected by 2005 Wisconsin Act .... (this act), may not be used after the 4th year after the year in which the credit is created, except the commission may promulgate rules specifying a different period of time if the commission determines that such period is necessary for consistency with any regional renewable resource credit trading program that applies in this state.

SB459, s. 112 Section 112. 196.378 (4m) of the statutes is created to read:

SB459,39,12 196.378 (4m) State energy policy. The commission's actions under this section are considered to satisfy the requirements of s. 1.12 (3) (b) and (4) (b) and (c), and the requirements of s. 1.12 (5) that relate to the generation of electric power from renewable energy resources. An electric provider's application under s. 196.49 or 196.491 (3) is not subject to the requirements of s. 196.025 (1) relating to the generation of electric power from renewable energy resources if the electric provider is in compliance with sub. (2) (a) or is granted a delay under sub. (2) (e).

SB459, s. 113 Section 113. 196.86 of the statutes is repealed.

SB459, s. 114 Section 114. 285.48 (1) (c) of the statutes is amended to read:

SB459,39,18 285.48 (1) (c) "Midcontinent area" has the meaning given in s. 16.958 (1) (e) means the geographic area served by the Mid-Continent Area Power Pool reliability council of the North American Electric Reliability Council, as such councils existed in 1999.

SB459, s. 115 Section 115. 285.48 (2) of the statutes is amended to read:

SB459,40,3 285.48 (2) Applicability. This section applies if the department of natural resources, pursuant to a call, issues a state implementation plan that requires electric generating facilities in the midcontinent area of this state to comply with nitrogen oxide emission reduction requirements. If the department of natural resources issues such a plan, the department of natural resources shall notify the department of administration and the public service commission. The notice shall specify the date on which electric generating facilities in the midcontinent area of this state are required to comply with the initial nitrogen oxide emission reduction requirements.

SB459, s. 116 Section 116. 285.48 (3) (d) 3. of the statutes is repealed.

SB459, s. 117 Section 117. 285.48 (3) (d) 4. of the statutes is repealed.

SB459, s. 118 Section 118. 285.48 (4) (a) of the statutes is amended to read:

SB459,40,11 285.48 (4) (a) The use of renewable energy, including renewable energy that is provided by electric providers for the purpose of complying with the requirements of s. 196.378 (2) (a), or renewable energy that is used under programs specified in s. 196.374 (2) (d) that are funded by expenditures under s. 196.374 (3) established under s. 16.957 (2) (b).

SB459, s. 119 Section 119. 285.48 (4) (b) of the statutes is amended to read:

SB459,40,18 285.48 (4) (b) The implementation of low-income weatherization and energy conservation measures, including programs established under s. 16.957 (2) (a) or (b) or programs specified in s. 196.374 (2) (a) or (b) that are funded by expenditures under s. 196.374 (3) administered by electric utilities under s. 196.374 (3m) (d) or (e) or by utilities, as defined in s. 196.374 (1) (c), 2003 stats., under s. 196.374 (3), 2003 stats.

SB459, s. 120 Section 120 . Nonstatutory provisions.

SB459,41,7 (1) Review of Energy Conservation Code. Notwithstanding section 101.027 (3) (a) and (b) of the statutes, the department of commerce shall begin a review of the energy conservation code, as defined in section 101.027 (1) (a) of the statutes, on the effective date of this subsection and shall complete that review and submit proposed rules changing the energy conservation code as provided in section 101.027 (2) of the statutes to the legislative council staff under section 227.15 (1) of the statutes by no later than the first day of the 18th month beginning after the effective date of this subsection. Notwithstanding section 101.027 (2) of the statutes, in conducting the review under this subsection, the department of commerce, to the extent practicable, shall consider incorporating into the energy conservation code design requirements from the most current national energy efficiency design standards for new buildings, except low-rise residential buildings, published by the American society of heating, refrigerating, and air-conditioning engineers.

SB459,41,13 (2) Anaerobic digestor research. The department of agriculture, trade and consumer protection shall include, as part of its 2007-09 biennial budget request that it submits to the department of administration under section 16.42 of the statutes, a proposal to provide additional funding for the research and development of anaerobic digestors at farms participating in the discovery farms program under the Wisconsin agricultural stewardship initiative.

SB459, s. 121 Section 121. Initial applicability.

SB459,41,17 (1) Energy efficiency standards. The treatment of sections 16.855 (10s) and 20.924 (1) (j) of the statutes first applies with respect to projects for which design work begins on the effective date of this subsection.

SB459, s. 122 Section 122. Effective dates. This act takes effect on the day after publication, except as follows: