SB450: Bill Text

Under the bill, no person may sell a compact audio device that uses more than four watts in standby mode (or two watts, if the device has a permanently illuminated clock) or a television or digital versatile disc (DVD) player or recorder that uses more than three watts in standby mode. Violators are subject to a forfeiture up to $100 for each device sold or offered for sale.

Boiler inspection requirements

This bill also establishes inspection requirements for persons who own industrial boilers. The bill requires that most industrial boilers be inspected on an annual basis to assess the boiler's energy efficiency. The owner of the boiler must take action based upon the results of the inspection to maximize the boiler's energy efficiency and to minimize the emission of greenhouse gasses from the boiler. The bill exempts certain industrial boilers from these inspection requirements including industrial boilers used by public utilities and cooperative organizations that generate or furnish electric energy to their members.

Greenhouse gas emissions by major state agencies

Currently, with certain exceptions, DOA must ensure that the specifications for each state construction project require the use of recovered and recycled materials to the extent that such use is technically and economically feasible. With certain exceptions, DOA must also prescribe and enforce energy efficiency standards for energy consuming equipment that is installed in connection with state construction projects. The standards must meet or exceed specified statutory standards. The Building Commission must also apply these standards when entering into certain leases on behalf of the state. Current law also requires the commission to employ a design for cogeneration of steam and electricity in state-owned central steam generating facilities unless the commission determines that such a design is not cost-effective and technically feasible. Currently, the commission must also ensure that state-operated steam generating facilities are designed to allow the use of biomass fuels and refuse-derived fuels to the greatest extent cost-effective and technically feasible. In addition, under current law, the commission is prohibited from approving the construction or major remodeling of or addition to any state building or structure unless the building or structure makes maximum practical use of passive solar energy system design elements and, unless not technically or economically feasible, incorporates an active solar energy system or photovoltaic solar energy system or other renewable energy system.

This bill directs nine state agencies (the departments of administration, agriculture, trade and consumer protection, corrections, health services, natural resources, public instruction, transportation, and veterans affairs, and the Board of Regents of the University of Wisconsin System) to: 1) prepare an analysis that estimates the amount of greenhouse gas emissions that are attributable to activities of the agency in calendar years 2005 and 2010; 2) establish achievable goals for reduction of greenhouse gas emissions identified in its analysis that must include a reduction by January 1, 2020, to an annual amount that is 22 percent lower than the annual amount attributable to the agency in 2005; and 3) develop a plan for achieving the goals by means of specific actions to be taken and completed by January 1, 2020. The plan must address nine specified means of reducing greenhouse gas emissions. The bill requires each of these agencies to make a biennial report to DOA concerning its progress toward achieving or its success in maintaining adherence to its goals. The bill then directs DOA to prepare a biennial report summarizing the reports it receives from these agencies and submit the report to DNR.

The bill also directs DOA to prescribe guidelines and protocols for use by these agencies in estimating the amount of greenhouse gas emissions that are attributable to activities of the agency, establishing goals for reducing those emissions, and developing plans to achieve the goals. The bill also directs DOA to establish energy efficiency goals for these agencies designed to ensure that, by 2030, the overall energy use by all state agencies is reduced to a level that is 30 percent lower than the overall use by those agencies in 2005. The bill further directs DOA to establish goals for each of these agencies that are designed to ensure that overall use by all agencies of energy derived from biomass is at least equivalent to an amount that gradually increases from 10 percent in 2010 to 25 percent in 2025.

Design standards for state buildings

This bill directs DOA to ensure that the plans and specifications for 1) each project to construct or expand a state building; 2) each project to repair, renew, or renovate an existing state building that affects at least 35,000 square feet of enclosed space; and 3) each project that affects the envelope or the heating, ventilation, or air conditioning system of an existing state building conform to the voluntary standards promulgated by Commerce under the bill unless DOA or the Building Commission is required by another law to apply a stricter standard for the plans or specifications. The bill also directs DOA to ensure that the plans and specifications for each other project to construct a state building or to construct, repair, renew, renovate, or expand a state building conform to the voluntary standards promulgated by Commerce if DOA determines that compliance is technically feasible and cost effective. The requirement for other projects does not apply if DOA or the Building Commission is required under another law to apply a stricter standard for the plans and specifications.

Energy efficiency assistance by office of energy independence

The bill directs the Office of Energy Independence (OEI) to provide information to school districts regarding opportunities to minimize expenses and environmental impacts through the modification of facilities and operational practices that maximize the efficiency of energy use, maximize the use of renewable energy resources, and otherwise minimize emissions of greenhouse gases. The bill also directs OEI to encourage and assist school districts in voluntarily conducting the analyses, establishing the goals and developing plans to achieve the goals required of the nine state agencies under the bill, and to report to DOA and DNR biennially on the progress made by school districts in so doing.

The bill directs DNR to provide assistance to the nine state agencies that must develop greenhouse gas emission reduction plans in identifying opportunities to reduce emissions through development of motor vehicle idling reduction techniques.

No specific penalty applies to violations, but all provisions of law resulting from enactment of the bill are enforceable through the court system.

Levy limit exception

Under current law, local levy limits are applied to the property tax levies that are imposed in December 2009 and 2010. Current law prohibits any city, village, town, or county (political subdivision) from increasing its levy by a percentage that exceeds its "valuation factor," which is defined as the greater of either 3 percent or the percentage change in the political subdivision's equalized value due to new construction, less improvements removed. In addition, the calculation of a political subdivision's levy does not include any tax increment that is generated by a tax incremental district.

Current law contains a number of exceptions to the levy limit. These exceptions include amounts that may be levied for the following purposes or because of the following situations: political subdivisions that transfer the provision of services to another governmental unit; cities or villages that annex town territory; political subdivisions that levy to pay debt service on debt authorized on or after July 1, 2005; a levy for certain charges assessed by a joint fire department; a county levy that relates to a county children with disabilities education board, bridge and culvert repairs, payments to public libraries, and a countywide emergency medical system; and the amount a village levies to pay for police services, but only for the year after the year in which a town, which did not have a police force, changed to village status.

This bill creates another exception to the levy limit that would otherwise apply. Under the bill, the levy limit does not apply to any amount levied by a political subdivision to pay for energy efficiency measures and renewable energy products that reduce or avoid energy costs, and such amount may not be included in the calculation of the base amount of any year's levy. The bill also requires DOA to promulgate rules to facilitate the implementation of this provision.

Energy crop reserve program

This bill directs DATCP to establish and administer a program to subsidize the production of crops to be used for the production of fuel or energy. A person may participate in the program if the person owns or leases eligible land in this state and enters into a contract, with a term of up to ten years, with DATCP to grow and harvest eligible crops. Eligible crops include herbaceous perennials or short rotation woody crops. "Short rotation woody crop" is defined as a woody crop, including willows and poplars, grown using agronomic practices. "Eligible land" is defined in the bill as land that is used for or susceptible for use for growing eligible crops. The following lands are not eligible for enrollment in the program: land owned by a municipality; federally owned land; land enrolled in certain federal agricultural programs; and land in native sod on the effective date of the bill. DATCP must designate, by rule, crops ineligible for payments under the program. A contract entered into under the program may be renewed. Further, a person may enter into more than one contract with DATCP under the program.

A person participating in the program who grows eligible crops in compliance with sustainable planting and harvesting requirements, performance standards, and conservation practices established by DATCP, in consultation with DNR, may receive the following payments over the term of the contract: 1) a percentage of the cost to establish the energy crops; 2) income replacement payments related to income lost during the years the energy crops are not yet ready for harvest; and 3) production payments for each ton of energy crop harvested and used to produce energy or fuel.

DATCP must establish, by rule, the amount a person participating in the program may receive under the program in each payment category and over the term of the contract. The rules may vary the amount or percentage of each payment according to a number of variables, including the cost to produce the energy crop, the amount of energy or fuel produced from the energy crop, the agricultural or silvicultural practices employed by the participating person, and the extent to which the production and harvesting practices minimize life-cycle greenhouse gas emissions and maximize carbon sequestration. DATCP must annually report to DNR and DOA on the acres of land enrolled in the program, the number of tons and types of energy crops harvested under the program, and the costs of the program.

This bill also requires DATCP and DNR to study whether financial incentives provided to bioenergy feedstock producers by state and federal programs, in effect on the effective date of the bill, are adequate to prompt the sustainable production of a supply of biomass that will significantly contribute to the achievement of state greenhouse gas emission reduction goals. The bill requires DATCP and DNR to work with OEI, the University of Wisconsin System, the PSC, and representatives of interested parties, including natural resources organizations, in the preparation of the study.

If DATCP and DNR determine, as a result of the study, that current state and federal financial incentives are not adequate, DATCP and DNR must, by July 1, 2013, prepare and submit to the Climate Change Coordinating Council recommended changes to current law and proposed new legislation to induce bioenergy feedstock producers to sustainably increase their production of biomass in order to achieve state greenhouse gas emission reduction goals. DATCP and DNR must consider, as part of the recommendations, methods to reduce financial risk to bioenergy feedstock producers and the expansion of programs that award credits to producers who reduce greenhouse gas emissions or use renewable resources in place of fossil fuels.

Forestry

Under current law, DNR awards grants to certain eligible private forest land owners to develop and implement forest stewardship management plans and to award grants to groups of interested parties for projects to control invasive plants in weed management areas. Each grant recipient must provide a matching contribution in an amount determined by DNR for that particular grant based on criteria promulgated by DNR by rule.

This bill requires DNR to promulgate rules that describe those forest stewardship management plan practices that are eligible for funding under the grant program, including establishing and maintaining trees; implementing measures to protect those trees from damage caused by deer; and implementing measures that promote forest health, including insect and disease control. The bill also limits the matching contribution required to be made by a grant recipient who is awarded a grant to plant and maintain trees to not more than 25 percent of that portion of the grant that is for the costs incurred in planting and maintaining the trees, subject to the availability of funds.

The bill requires DNR to provide technical assistance to promote sustainable forest management that increases the long term storage of carbon (carbon sequestration) in forests owned by private persons and to assist them to generate marketable credits that can be used by purchasers to satisfy limits on emissions of greenhouse gases. The bill requires DNR to produce standards and practices for monitoring and measuring carbon sequestration by forests. The bill also requires DNR to attempt to identify owners of private forest land who do not participate in forestry programs, and to notify those owners about information and technical assistance available from DNR concerning carbon sequestration and sustainable forest management.

Air pollution permitting for sources reducing greenhouse gas emissions

Under current law, a person must generally obtain an air pollution construction permit from DNR before constructing or modifying a stationary source of air pollution. Permitting and other requirements vary depending on whether a stationary source is considered a major source or a minor source. The determination of whether a source is a major source is based on provisions of the federal Clean Air Act. Currently, EPA delegates to DNR the authority to administer the federal Clean Air Act in this state.

Current law requires DNR to assess air pollution permit obligations for stationary sources and to implement measures, consistent with state and federal law, to lessen those obligations, such as by expanding the availability of simplified permitting processes.

This bill requires DNR to implement measures to lessen air pollution permit obligations for the construction or modification of a stationary source for which a major source construction permit is not required if the construction or modification would significantly reduce emissions of greenhouse gasses.

Industrial development bonds

Under federal law, income earned on certain revenue bonds issued by a state or municipality may be exempt from federal income taxes. Federal law imposes a limit, or volume cap, on the total aggregate dollar amount of certain tax-exempt revenue bonds that may be issued by eligible entities in a state in any calendar year. Under current law, Commerce has established by rule and administers a system for the allocation of federal income tax-exempt revenue bonding authority among municipalities, the Wisconsin Housing and Economic Development Authority, the Wisconsin Health and Educational Facilities Authority, and the Wisconsin Aerospace Authority.

Current law authorizes municipalities to issue industrial development revenue bonds for a variety of purposes, including to finance the costs of manufacturing facilities, hospitals, industrial parks, recreational facilities, convention centers and trade centers, pollution control facilities, and sewage and solid and liquid waste disposal facilities systems. If Commerce allocates a portion of the volume cap to a project and industrial development revenue bonds are issued in accordance with state and federal law, the industrial development revenue bonds are exempt from federal income tax.

This bill requires Commerce to, by rule, annually dedicate 25 percent of that portion of the volume cap allocated to municipalities to private revenue bonds issued to finance clean energy manufacturing facilities and renewable power generating facilities. Clean energy manufacturing facilities are defined by the bill to include facilities that manufacture energy efficient fixtures or building components, equipment used to produce energy from a renewable resource, and certain advanced drive train vehicles. A renewable power generating facility is defined to mean a facility owned by a person other than a utility or an electric cooperative with equipment to generate its own electricity or energy from a renewable resource. The bill defines a renewable resource as a resource that derives energy from any source other than coal, petroleum products, nuclear power or, with limited exceptions, natural gas. Under the bill, renewable resources include resources deriving power from solar energy, wind energy, geothermal technology, and fuel cell technology.

Commerce may, beginning on September 1 of any year, reallocate any portion of the 25 percent allocated to clean energy manufacturing facilities and renewable power generating facilities for which no revenue bonds have been issued and for which no resolutions authorizing the issuance of a revenue bond have been adopted.

Report on cap and trade program

This bill requires DNR to report to the legislature and the governor if the federal government establishes, or governors of this state and other midwestern states recommend, a greenhouse gas cap and trade program, which is a program that imposes limits on greenhouse gas emissions and provides for the trading of allowances that may be used to satisfy those limits.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB450, s. 1 Section 1. 15.347 (3) of the statutes is created to read:

SB450,30,4 15.347 (3) Climate change coordinating council. (a) Creation; membership. There is created in the department of natural resources a climate change coordinating council consisting of the following members:

SB450,30,5 1. The secretary of administration or his or her designee.

SB450,30,6 2. The secretary of natural resources or his or her designee.

SB450,30,7 3. The secretary of commerce or his or her designee.

SB450,30,9 4. The secretary of agriculture, trade and consumer protection or his or her designee.

SB450,30,10 5. The secretary of health services or his or her designee.

SB450,30,11 6. The secretary of transportation or his or her designee.

SB450,30,12 7. The president of the University of Wisconsin System or his or her designee.

SB450,30,13 8. The chairperson of the public service commission or his or her designee.

SB450,31,2 9. The executive director of the office of energy independence or his or her designee.

SB450,31,3 10. One person to represent the governor, appointed to a 4-year term.

SB450,31,6 (b) Designees. A person who is authorized under par. (a) to appoint a designee may only appoint a designee who is an employee or appointive officer of the person's agency.

SB450, s. 2 Section 2. 16.75 (12) (a) 4. of the statutes is amended to read:

SB450,31,10 16.75 (12) (a) 4. "Renewable resource" has the meaning given in s. 196.378 (1) (h) 1. or 2. and includes a resource, as defined in s. 196.378 (1) (j), that derives electricity from hydroelectric power 196.374 (1) (j).

SB450, s. 3 Section 3. 16.856 of the statutes is created to read:

SB450,31,12 16.856 Design standards for state buildings. (1) In this section:

SB450,31,16 (a) "Major construction project" means a project to construct or expand a state building; a project to repair, renew, or renovate an existing state building that affects at least 35,000 square feet of enclosed space; or a project that affects the envelope or heating, ventilation, or air conditioning system of an existing state building.

SB450,31,18 (b) "Minor construction project" means a project to construct, repair, renew, renovate, or expand a state building that is not a major construction project.

SB450,31,23 (2) The department shall ensure that the plans and specifications for each major construction project conform to the design standards promulgated by the department of commerce under s. 101.027 (4) unless the department or the building commission is required by another law to apply a stricter standard for the plans or specifications.

SB450,32,4 (3) The department shall ensure that the plans and specifications for each minor construction project conform to the design standards promulgated by the department of commerce under s. 101.027 (4) if the department determines that compliance is technically feasible and cost effective. This subsection does not apply if the department or the building commission is required by another law to apply a stricter standard for the plans or specifications.

SB450, s. 4 Section 4. 16.954 of the statutes is created to read:

SB450,32,6 16.954 Greenhouse gas emission; energy use. (1) In this section:

SB450,32,7 (a) "Agency" has the meaning given in s. 16.70 (1e).

SB450,32,8 (b) "Biomass" has the meaning given in s. 196.374 (1) (am).

SB450,32,9 (c) "Greenhouse gas" has the meaning given in s. 299.03 (1) (d).

SB450,32,11 (2) The department shall prescribe guidelines and protocols for use by agencies to which s. 299.045 applies in:

SB450,32,13 (a) Estimating the amount of greenhouse gas emissions that are attributable to activities of each of those agencies under s. 299.045 (2).

SB450,32,15 (b) Establishing achievable goals for the reduction in greenhouse gas emissions that are attributable to each of those agencies under s. 299.045 (3) (a).

SB450,32,16 (c) Developing plans to achieve the goals established under s. 299.045 (3) (a).

SB450,32,18 (3) The department shall assist agencies to which s. 299.045 applies in complying with s. 299.045 with regard to energy use in facilities used by the agencies.

SB450,32,22 (4) The department shall establish a schedule of energy efficiency goals for each agency to which s. 299.045 applies that are designed to ensure that, by 2030, the overall energy use by all agencies is reduced to a level that is 30 percent lower than the overall energy use by all agencies in 2005.

SB450,33,2 (5) The department shall establish goals for each agency to which s. 299.045 applies that are designed to ensure that overall use by all agencies of energy derived from biomass sources is at least equivalent to the following percentages by the dates specified:

SB450,33,3 (a) Ten percent by 2010.

SB450,33,4 (b) Fifteen percent by 2015.

SB450,33,5 (c) Twenty percent by 2020.

SB450,33,6 (d) Twenty-five percent by 2025.

SB450,33,9 (6) No later than July 1 of each odd-numbered year, the department of administration shall prepare and submit to the department of natural resources a report that summarizes the reports received under s. 299.045 (5) in that year.

SB450, s. 5 Section 5. 16.956 (1) (bk) and (bn) and (3) (f) to (i) of the statutes are created to read:

SB450,33,12 16.956 (1) (bk) "Biomass" has the meaning given in s. 196.374 (1) (am).

SB450,33,13 (bn) "Greenhouse gas" has the meaning given in s. 299.03 (1) (d).

SB450,33,16 (3) (f) Assist agencies to which s. 299.045 applies in complying with s. 299.045 with regard to the use of transportation fuels by the agencies and their officers, employees, and agents.

SB450,33,21 (g) Provide information to school districts regarding opportunities to minimize expenses and environmental impacts through the modification of facilities and operational practices that maximize the efficiency of energy use, maximize the use of renewable energy resources, and otherwise minimize emissions of greenhouse gases.

SB450,34,2 (h) Encourage and assist school districts to voluntarily conduct the analyses described in s. 299.045 (2), establish achievable goals for the reduction of greenhouse gas emissions identified in their analyses as provided in s. 299.045 (3), and develop and implement a plan for achieving their goals by means of specific actions to be taken by specific dates.

SB450,34,9 (i) No later than July 1 of each odd-numbered year, report to the departments of administration and natural resources regarding the voluntary participation of school districts in the establishment of goals and the development and implementation of plans for achieving goals under par. (h), the accomplishments of school districts in implementing those plans, and the verifiable reductions of energy use, greenhouse gas emissions, and school district expenses attributable to implementation of those plans.

SB450, s. 6 Section 6. 16.956 (3) (j) of the statutes is created to read:

SB450,34,12 16.956 (3) (j) Annually compile a report containing statistics on energy use and production in this state and make the report available on its Internet site.