AB649: Bill Text

AB649, s. 178 Section 178. 196.378 (1r) (gm) of the statutes is created to read:

AB649,103,23 196.378 (1r) (gm) "Renewable portfolio standard" means the requirement to comply with sub. (2) (a) 2.

AB649, s. 179 Section 179. 196.378 (2) (a) 1. of the statutes is amended to read:

AB649,104,16 196.378 (2) (a) 1. No later than June 1, 2016 2014, the commission shall prepare a report stating whether, by December 31, 2015 2013, the state has met a goal of 10 percent of all electric energy consumed in the state being renewable energy. No later than June 1, 2021, the commission shall prepare a report stating, whether by December 31, 2020, the state has met a goal of 20 percent of all electric energy consumed in this state being renewable energy and 6 percent of all electric energy consumed in this state being generated by renewable facilities located in this state. No later than June 1, 2026, the commission shall prepare a report stating, whether by December 31, 2025, the state has met a goal of 25 percent of all electric energy consumed in this state being renewable energy and 10 percent of all electric energy consumed in this state being generated by renewable facilities located in this state. If the a goal for a year has not been achieved, the a report shall indicate why the goal was not achieved and how it may be achieved, and the commission shall prepare similar reports biennially thereafter until the goal is achieved. The commission shall submit reports under this subdivision to the governor and chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2).

AB649, s. 180 Section 180. 196.378 (2) (a) 2. c. of the statutes is amended to read:

AB649,104,20 196.378 (2) (a) 2. c. For the years 2011, and 2012, 2013, and 2014, each electric provider may not decrease its renewable energy percentage below the electric provider's renewable energy percentage required under subd. 2. b.

AB649, s. 181 Section 181. 196.378 (2) (a) 2. d. of the statutes is amended to read:

AB649,104,24 196.378 (2) (a) 2. d. For the year 2015 2013, each electric provider shall increase its renewable energy percentage so that it is at least 6 percentage points above the electric provider's baseline renewable percentage.

AB649, s. 182 Section 182. 196.378 (2) (a) 2. e. of the statutes is amended to read:

AB649,105,4 196.378 (2) (a) 2. e. For each year after the years 2014, 2015, 2016, 2017, 2018, and 2019, each electric provider may not decrease its renewable energy percentage below the electric provider's renewable energy percentage required under subd. 2. d.

AB649, s. 183 Section 183. 196.378 (2) (a) 2. f. of the statutes is created to read:

AB649,105,10 196.378 (2) (a) 2. f. For the year 2020, each electric provider shall increase its renewable energy percentage so that it is at least 16 percentage points above the electric provider's baseline renewable percentage and shall ensure that its in-state percentage is not less than 30 percent of the renewable energy percentage required under this subd. 2. f.

AB649, s. 184 Section 184. 196.378 (2) (a) 2. g. of the statutes is created to read:

AB649,105,16 196.378 (2) (a) 2. g. For the years 2021, 2022, 2023, and 2024, each electric provider may not decrease its renewable energy percentage below the electric provider's renewable energy percentage required under subd. 2. f. and may not decrease its in-state percentage below the electric provider's in-state percentage required under subd. 2. f.

AB649, s. 185 Section 185. 196.378 (2) (a) 2. h. of the statutes is created to read:

AB649,105,22 196.378 (2) (a) 2. h. For the year 2025, each electric provider shall increase its renewable energy percentage so that it is at least 21 percentage points above the electric provider's baseline renewable percentage and shall ensure that its in-state percentage is not less than 40 percent of the renewable energy percentage required under this subd. 2. h.

AB649, s. 186 Section 186. 196.378 (2) (a) 2. i. of the statutes is created to read:

AB649,106,3 196.378 (2) (a) 2. i. For each year after 2025, each electric provider may not decrease its renewable energy percentage below the electric provider's renewable energy percentage required under subd. 2. h. and may not decrease its in-state percentage below the electric provider's in-state percentage required under subd. 2. h.

AB649, s. 187 Section 187. 196.378 (2) (b) (intro.) of the statutes is amended to read:

AB649,106,6 196.378 (2) (b) (intro.) For purposes of determining compliance with par. (a) the renewable portfolio standard:

AB649, s. 188 Section 188. 196.378 (2) (b) 1m. (intro.) of the statutes is amended to read:

AB649,106,14 196.378 (2) (b) 1m. (intro.) The Except as provided in subd. 1r., the amount of renewable resource credits associated with electricity derived from hydroelectric renewable resources that an electric provider may count toward satisfying the requirements of par. (a) 2. include in its renewable energy percentage shall be those renewable resource credits associated with all electricity provided by hydroelectric power that the electric provider purchased in the reporting year plus renewable resource credits associated with all of the following:

AB649, s. 189 Section 189. 196.378 (2) (b) 1m. a. of the statutes is amended to read:

AB649,106,23 196.378 (2) (b) 1m. a. The For facilities owned or operated by the electric provider that were initially placed in service before January 1, 2004, the average of the amounts of hydroelectric power generated by the facilities owned or operated by the electric provider for 2001, 2002, and 2003, regardless of whether the electric provider owned or operated the facilities in those years, adjusted to reflect the permanent removal from service of any of those facilities and adjusted to reflect any capacity increases from improvements made to those facilities on or after January 1, 2004.

AB649, s. 190 Section 190. 196.378 (2) (b) 1r. of the statutes is created to read:

AB649,107,4 196.378 (2) (b) 1r. a. Except as provided in subd. 1r. b. and c., an electric provider may not include in its renewable energy percentage any renewable resource credits associated with electricity derived from a hydroelectric facility that has a rated capacity of 60 megawatts or more.

AB649,107,9 b. Except as provided in subd. 1r. c., an electric provider may include in its renewable energy percentage renewable resource credits associated with electricity generated after December 31, 2013, from a hydroelectric facility located outside this state that has a rated capacity of 60 megawatts or more and that is first placed in service on or after the effective date of this subd. 1r. b. .... [LRB inserts date].

AB649,107,22 c. Renewable resource credits associated with electricity derived from a hydroelectric facility that is located in Manitoba, Canada, that has a rated capacity of 60 megawatts or more, and that is first placed in service on or after the effective date of this subd. 1r. c. .... [LRB inserts date], may be included in a renewable energy percentage only if the province of Manitoba has informed the commission in writing that the interim licenses under which the Lake Winnipeg Regulation Project and the Churchill River Diversion Project were operating on the effective date of this subd. 1r. c. .... [LRB inserts date], have been replaced by final licenses and that those projects have received all final approvals, licenses, and permits applicable to them under Canadian law and only if the commission determines that such final licenses and any other actions taken by the province of Manitoba or Manitoba Hydro-Electric Board constitute a reasonable resolution of the concerns of the First Nations affected by those projects.

AB649, s. 191 Section 191. 196.378 (2) (b) 2. of the statutes is repealed.

AB649, s. 192 Section 192. 196.378 (2) (b) 2m. of the statutes is created to read:

AB649,108,3 196.378 (2) (b) 2m. A wholesale supplier may demonstrate compliance with the renewable portfolio standard on behalf of a member or customer, or on behalf of its members or customers in the aggregate.

AB649, s. 193 Section 193. 196.378 (2) (b) 4. and 5. of the statutes are repealed.

AB649, s. 194 Section 194. 196.378 (2) (bm) of the statutes is created to read:

AB649,108,6 196.378 (2) (bm) 1. In this paragraph:

AB649,108,12 a. "Energy content ratio" means, with respect to a facility, the ratio in which the numerator is the energy content of the biomass, solid waste, refuse-derived fuel, or any combination of biomass, solid waste, or refuse-derived fuel, that is burned by the facility and the denominator is the energy content of the fossil fuel and the biomass, solid waste, refuse-derived fuel, or any combination of biomass, solid waste, or refuse-derived fuel, that is burned by the facility.

AB649,108,15 b. "Facility" means a facility that burns a fossil fuel and also burns biomass, solid waste, refuse-derived fuel, or any combination of biomass, solid waste, or refuse-derived fuel.

AB649,108,19 2. The amount of renewable resource credits associated with electricity supplied by a facility that may be included in a renewable energy percentage shall be an amount equal to the product of the facility's energy content ratio and the total amount of the electricity generated by the facility that is sold at retail.

AB649,108,23 3. The amount of renewable resource credits associated with thermal energy supplied by a facility that may be included in a renewable energy percentage shall be an amount equal to the product of the facility's energy content ratio and the total amount of thermal energy that is produced by the facility.

AB649, s. 195 Section 195. 196.378 (2) (c) of the statutes is renumbered 196.378 (2) (c) 1. and amended to read:

AB649,109,16 196.378 (2) (c) 1. 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 commission that identifies the electric provider's renewable energy percentage for the previous year and, beginning with the report submitted in 2021, the electric provider's in-state percentage for the previous year, and describes the electric provider's compliance with par. (a) 2. the renewable portfolio standard and the electric provider's implementation plans for future compliance. Reports under this paragraph may include certifications from renewable energy suppliers regarding the sources and amounts of renewable energy supplied to the electric provider. The 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). A wholesale supplier may submit a report under this subdivision on behalf of a member or customer or on behalf of its members or customers in the aggregate.

AB649,109,20 2. No later than 90 days after the commission's receipt of an electric provider's a report submitted by or on behalf of an electric provider under subd. 1., the commission shall inform the electric provider whether the electric provider is in compliance with par. (a) 2. the renewable portfolio standard.

AB649, s. 196 Section 196. 196.378 (2) (d) (intro.) of the statutes is amended to read:

AB649,110,2 196.378 (2) (d) (intro.) The commission shall allow an electric utility to recover from ratepayers the cost of providing total renewable energy to its retail customers in amounts that equal or exceed the percentages specified in par. (a) complying with or exceeding the renewable portfolio standard. 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:

AB649, s. 197 Section 197. 196.378 (2) (e) (intro.) of the statutes is amended to read:

AB649,110,10 196.378 (2) (e) (intro.) An electric provider, or a wholesale supplier for its members, may request that the commission grant a delay for complying with a deadline specified in par. (a) 2. the renewable portfolio standard. The commission shall hold a hearing on the request and, if requested by the electric provider or wholesale supplier, treat the matter as a contested case. The commission shall grant a delay if the commission determines that the applicant has demonstrated good faith efforts to comply with the deadline and that any of the following applies:

AB649, s. 198 Section 198. 196.378 (2) (f) of the statutes is amended to read:

AB649,110,21 196.378 (2) (f) A wholesale electric cooperative for its members or a municipal electric company supplier for its members or customers may delay compliance with a deadline specified in par. (a) 2. the renewable portfolio standard for any reason specified in par. (e) 1. to 4. A wholesale electric cooperative or a municipal electric company supplier that delays compliance with a deadline specified in par. (a) 2. the renewable portfolio standard shall inform the commission of the delay and the reason for the delay, and shall submit information to the commission demonstrating that, notwithstanding good faith efforts by the wholesale electric cooperative or municipal electric company supplier and its members or customers, the members or customers cannot meet the deadline for the stated reason.

AB649, s. 199 Section 199. 196.378 (2) (g) 2. of the statutes is amended to read:

AB649,111,5 196.378 (2) (g) 2. An energy consumer advocacy group may request that the commission grant to an electric provider that serves one or more members of the group a delay for complying with a deadline specified in par. (a) 2. the renewable portfolio standard. The commission shall hold a hearing on the request and, if requested by the energy consumer advocacy group, treat the matter as a contested case. The commission shall grant a delay if the commission determines that the utility has demonstrated good faith efforts to comply with the deadline and that any of the conditions in par. (e) 1. to 4. apply.

AB649, s. 200 Section 200. 196.378 (2) (h) of the statutes is created to read:

AB649,111,10 196.378 (2) (h) For purposes of pars. (e), (f), and (g), a renewable energy percentage deadline for a year and an in-state percentage deadline for the same year are separate deadlines for which separate delays must be granted or authorized under par. (e), (f), or (g).

AB649, s. 201 Section 201. 196.378 (3) of the statutes is repealed and recreated to read:

AB649,111,16 196.378 (3) Renewable resource credits. (a) 1. Except as provided in par. (d), whenever a person generates renewable energy, the person creates renewable resource credits in an amount equal to one credit for each megawatt hour of renewable energy generated. A person that generates renewable energy may do any of the following:

AB649,111,20 a. Sell the renewable energy and the associated renewable resource credits to any other person. For renewable energy that is sold at wholesale in this state, the sale is considered to include the associated renewable resource credits unless an agreement between the parties specifies otherwise.

AB649,111,24 b. Except as provided in s. 196.379 (6), separate the renewable resource credits from the renewable energy and sell, trade, transfer, assign, bank for future use, or permanently retire the credits or, if the person is an electric provider, elect to include the credits in the electric provider's renewable energy percentage.

AB649,112,3 2. A person that purchases renewable energy from which the associated renewable resource credits have not been separated may take any of the actions described in subds. 1. a. and b.

AB649,112,7 3. A person that purchases renewable resource credits may sell, trade, transfer, assign, bank for future use, or permanently retire the credits, or, if the person is an electric provider, elect to include the credits in the electric provider's renewable energy percentage.

AB649,112,13 4. An electric provider may include renewable resource credits created by the generation of renewable energy outside this state in the electric provider's renewable energy percentage if the credits are documented in a regional renewable resource credit tracking system designated by the commission in rules promulgated under par. (b) and the credits satisfy the requirements of this subsection and the rules promulgated under par. (b).

AB649,112,17 5. An electric provider may not include a renewable resource credit in the electric provider's renewable energy percentage if the renewable resource credit or renewable energy from which the credit has been separated has been used to comply with the renewable energy requirements of another state.

AB649,112,20 6. An electric provider may not use renewable resource credits created by the generation of renewable energy outside this state to comply with an in-state percentage requirement of the renewable portfolio standard.

AB649,112,23 7. A renewable resource credit remains eligible to be included in a renewable energy percentage until an electric provider uses the credit in the electric provider's renewable energy percentage or the owner of the credit retires the credit.

AB649,113,4 (b) The commission shall promulgate rules that establish requirements and procedures for creating, selling, trading, transferring, assigning, banking, and retiring renewable resource credits, for an electric provider's inclusion of renewable resource credits in the electric provider's renewable energy percentage, and for tracking renewable resource credits under a regional renewable resource credit tracking system designated by the commission.

AB649,113,8 (c) The commission shall promulgate rules that allow an electric provider to include in the electric provider's renewable energy percentage renewable energy generated or purchased by the electric provider from which renewable resource credits have not been separated.

AB649,113,11 (d) Renewable resource credits associated with hydroelectric power specified in sub. (2) (b) 1m. a. and b. may not be sold, traded, transferred, assigned, or banked for future use.

AB649, s. 202 Section 202. 196.378 (3m) of the statutes is created to read:

AB649,113,24 196.378 (3m) Nonelectric energy. (a) The commission shall promulgate rules allowing an electric provider to include in its renewable energy percentage for a year the megawatt hour equivalent of nonelectric energy produced or generated by the electric provider in the year. The commission shall also promulgate rules allowing any person, including an electric provider, to create a certificate documenting the megawatt hour equivalent of nonelectric energy produced or generated by the person in a year and to sell the certificate to an electric provider for inclusion in the electric provider's renewable energy percentage for that year. An electric provider who purchases a certificate may sell the certificate to another electric provider, but a certificate may be included in an electric provider's renewable energy percentage only in the year that the nonelectric energy documented by the certificate was generated. There is no limit on the number of sales in a year by electric providers.

AB649,114,4 (b) The rules promulgated under par. (a) shall include requirements and procedures for determining the megawatt hour equivalent of nonelectric energy, measuring and verifying nonelectric energy, and demonstrating that nonelectric energy has displaced fossil fuel use in this state.

AB649, s. 203 Section 203. 196.378 (4) of the statutes, as affected by 2009 Wisconsin Act 40, is repealed.

AB649, s. 204 Section 204. 196.378 (4m) (a) of the statutes is amended to read:

AB649,114,15 196.378 (4m) (a) The commission may not impose on an electric provider any requirement that increases the electric provider's renewable energy percentage or in-state percentage beyond that required under sub. (2) (a) 2. the renewable portfolio standard. If an electric provider is in compliance with the requirements of sub. (2) (a) 2. renewable portfolio standard, the commission may not require the electric provider to undertake, administer, or fund any other renewable energy program. This paragraph does not limit the authority of the commission to enforce an electric provider's obligations under s. 196.374 or 196.379.

AB649, s. 205 Section 205. 196.378 (4m) (b) of the statutes is amended to read:

AB649,114,21 196.378 (4m) (b) An electric utility may, with commission approval, administer or fund a program that increases the electric utility's renewable energy percentage or in-state percentage beyond that required under sub. (2) (a) 2. the renewable portfolio standard. The commission may not order an electric utility to administer or fund a program under this paragraph.

AB649, s. 206 Section 206. 196.378 (5) (intro.) of the statutes is amended to read:

AB649,115,5 196.378 (5) Penalty. (intro.) Any person who violates sub. (2) or any renewable energy supplier who provides an electric provider with a false or misleading certification information regarding the sources or amounts of renewable energy supplied at wholesale 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:

AB649, s. 207 Section 207. 196.378 (5) (a) of the statutes is amended to read:

AB649,115,8 196.378 (5) (a) The appropriateness of the forfeiture to the person's or wholesale supplier's volume of business.

AB649, s. 208 Section 208. 196.379 of the statutes is created to read:

AB649,115,10 196.379 Renewable tariffs. (1) Definitions. In this section:

AB649,115,11 (a) "Electric utility" has the meaning given in s. 196.378 (1r) (d).

AB649,115,13 (b) "Large electric utility" means an electric utility that had retail electric sales in 2008 of 2,500,000 megawatt hours or more.

AB649,115,14 (c) "Renewable energy" means electricity derived from a renewable facility.

AB649,115,17 (d) "Renewable facility" means an electric generating facility that is a small-scale facility, as determined by the commission, and that derives energy from any of the following:

AB649,115,18 1. Photovoltaic energy.

AB649,115,19 2. Wind power.

AB649,115,20 3. Gas made from a renewable resource.

AB649,115,21 4. Any other renewable resource specified by the commission.

AB649,115,22 (e) "Renewable resource" has the meaning given in s. 196.374 (1) (j).

AB649,115,23 (f) "Renewable resource credit" has the meaning given in s. 196.378 (1r) (i).

AB649,115,25 (g) "Small electric utility" means an electric utility that had retail electric sales in 2008 of less than 2,500,000 megawatt hours.