SB450: Bill Text

SB450, s. 168 Section 168. 196.378 (1) (o) of the statutes is repealed.

SB450, s. 169 Section 169. 196.378 (1) (p) of the statutes is renumbered 196.378 (1r) (p).

SB450, s. 170 Section 170. 196.378 (1g) of the statutes is created to read:

SB450,101,6 196.378 (1g) Legislative findings. The legislature finds all of the following:

SB450,101,8 (a) It is essential to the health and safety and economic well-being of Wisconsin that the state maintain a highly reliable electric system at all times.

SB450,101,13 (b) Increased reliance on out-of-state electric generation dependent on long-distance transmission of electricity to deliver the electricity to Wisconsin creates reliability and congestion cost risks that are significantly greater than reliance on electric generation located in Wisconsin at or near centers of demand for electricity.

SB450,101,15 (c) Historically, Wisconsin has relied on imports of electricity from other states for about 15 percent of the state's electricity needs.

SB450,101,20 (d) It is essential to the health and safety and economic well-being of Wisconsin that the state take actions to mitigate global climate change from emissions of greenhouse gasses. Central to such mitigation efforts is reducing reliance on electricity produced from fossil fuels through policies such as the renewable portfolio standard.

SB450,102,2 (e) As of the effective date of this paragraph .... [LRB inserts date], the most abundant and affordable sources of electricity that can be used to comply with the renewable portfolio standard are wind resources in western Minnesota, the Dakotas, and Iowa. Extensive reliance on these resources for compliance with the renewable portfolio standard will produce a significant increase in dependence on imported electricity with the associated reliability and congestion cost risks.

SB450,102,6 (f) To balance the competing imperatives of maintaining the reliability of the electric system and reducing dependence on electricity produced from fossil fuels, it is essential that Wisconsin adopt a renewable portfolio standard that requires at least in part the production of electricity from renewable resources in this state.

SB450, s. 171 Section 171. 196.378 (1r) (de) of the statutes is created to read:

SB450,102,12 196.378 (1r) (de) "In-state percentage" means, with respect to an electric provider, the portion of the electric provider's renewable energy percentage that is derived from electricity generated by renewable facilities located in this state, renewable resource credits separated from such electricity, nonelectric energy, and nonelectric energy certificates.

SB450, s. 172 Section 172. 196.378 (1r) (dm) of the statutes is created to read:

SB450,102,17 196.378 (1r) (dm) "Nonelectric energy" means any of the following types of energy produced or generated at a facility located in this state and placed in service on or after the effective date of this paragraph .... [LRB inserts date], but only if the energy displaces fossil fuel use in this state:

SB450,102,19 1. The thermal output from a cogeneration production plant, as defined in s. 79.005 (1g).

SB450,102,22 2. The thermal output from a biomass-fueled boiler, but only if, after the effective date of this subdivision .... [LRB inserts date], the boiler was converted from a fossil fuel-fueled boiler to a biomass-fueled boiler.

SB450,102,23 3. The thermal output of a geothermal system.

SB450,102,24 4. Biogas that is put into a natural gas transmission or distribution pipeline.

SB450,102,25 5. The thermal output of a solar water heating system.

SB450,103,1 6. Useable light delivered by a solar light pipe.

SB450,103,3 7. Energy derived from other applications, specified by the commission by rule, that produce energy other than electricity from renewable resources.

SB450, s. 173 Section 173. 196.378 (1r) (ds) of the statutes is created to read:

SB450,103,6 196.378 (1r) (ds) "Nonelectric energy certificate" means a certificate created under the rules under sub. (3m) (a).

SB450, s. 174 Section 174. 196.378 (1r) (fg) 2. of the statutes is created to read:

SB450,103,9 196.378 (1r) (fg) 2. The combustion of refuse-derived fuel in a facility that was in service before January 1, 1998.

SB450, s. 175 Section 175. 196.378 (1r) (fg) 3. of the statutes is created to read:

SB450,103,13 196.378 (1r) (fg) 3. The combustion of solid waste that has been subject to a process to remove recyclable and noncombustible materials in a facility that is owned by a county in this state and that was in service before January 1, 1998.

SB450, s. 176 Section 176. 196.378 (1r) (fm) 3. of the statutes is created to read:

SB450,103,17 196.378 (1r) (fm) 3. Nonelectric energy produced or generated by the electric provider in that year from which the electric provider does not create nonelectric energy certificates.

SB450, s. 177 Section 177. 196.378 (1r) (fm) 4. of the statutes is created to read:

SB450,103,20 196.378 (1r) (fm) 4. Nonelectric energy certificates that an electric provider purchases in that year.

SB450, s. 178 Section 178. 196.378 (1r) (gm) of the statutes is created to read:

SB450,103,23 196.378 (1r) (gm) "Renewable portfolio standard" means the requirement to comply with sub. (2) (a) 2.

SB450, s. 179 Section 179. 196.378 (2) (a) 1. of the statutes is amended to read:

SB450,104,16 196.378 (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).

SB450, s. 180 Section 180. 196.378 (2) (a) 2. c. of the statutes is amended to read:

SB450,104,20 196.378 (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.

SB450, s. 181 Section 181. 196.378 (2) (a) 2. d. of the statutes is amended to read:

SB450,104,24 196.378 (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.

SB450, s. 182 Section 182. 196.378 (2) (a) 2. e. of the statutes is amended to read:

SB450,105,4 196.378 (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.

SB450, s. 183 Section 183. 196.378 (2) (a) 2. f. of the statutes is created to read:

SB450,105,10 196.378 (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.

SB450, s. 184 Section 184. 196.378 (2) (a) 2. g. of the statutes is created to read:

SB450,105,16 196.378 (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.

SB450, s. 185 Section 185. 196.378 (2) (a) 2. h. of the statutes is created to read:

SB450,105,22 196.378 (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.

SB450, s. 186 Section 186. 196.378 (2) (a) 2. i. of the statutes is created to read:

SB450,106,3 196.378 (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.

SB450, s. 187 Section 187. 196.378 (2) (b) (intro.) of the statutes is amended to read:

SB450,106,6 196.378 (2) (b) (intro.) For purposes of determining compliance with par. (a) the renewable portfolio standard:

SB450, s. 188 Section 188. 196.378 (2) (b) 1m. (intro.) of the statutes is amended to read:

SB450,106,14 196.378 (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:

SB450, s. 189 Section 189. 196.378 (2) (b) 1m. a. of the statutes is amended to read:

SB450,106,23 196.378 (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.

SB450, s. 190 Section 190. 196.378 (2) (b) 1r. of the statutes is created to read:

SB450,107,4 196.378 (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.

SB450,107,9 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].

SB450,107,22 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.

SB450, s. 191 Section 191. 196.378 (2) (b) 2. of the statutes is repealed.

SB450, s. 192 Section 192. 196.378 (2) (b) 2m. of the statutes is created to read:

SB450,108,3 196.378 (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.

SB450, s. 193 Section 193. 196.378 (2) (b) 4. and 5. of the statutes are repealed.

SB450, s. 194 Section 194. 196.378 (2) (bm) of the statutes is created to read:

SB450,108,6 196.378 (2) (bm) 1. In this paragraph:

SB450,108,12 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.

SB450,108,15 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.

SB450,108,19 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.

SB450,108,23 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.

SB450, s. 195 Section 195. 196.378 (2) (c) of the statutes is renumbered 196.378 (2) (c) 1. and amended to read:

SB450,109,16 196.378 (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.

SB450,109,20 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.

SB450, s. 196 Section 196. 196.378 (2) (d) (intro.) of the statutes is amended to read:

SB450,110,2 196.378 (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:

SB450, s. 197 Section 197. 196.378 (2) (e) (intro.) of the statutes is amended to read:

SB450,110,10 196.378 (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:

SB450, s. 198 Section 198. 196.378 (2) (f) of the statutes is amended to read:

SB450,110,21 196.378 (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.

SB450, s. 199 Section 199. 196.378 (2) (g) 2. of the statutes is amended to read:

SB450,111,5 196.378 (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.

SB450, s. 200 Section 200. 196.378 (2) (h) of the statutes is created to read:

SB450,111,10 196.378 (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).

SB450, s. 201 Section 201. 196.378 (3) of the statutes is repealed and recreated to read:

SB450,111,16 196.378 (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:

SB450,111,20 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.

SB450,111,24 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.

SB450,112,3 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.

SB450,112,7 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.

SB450,112,13 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).