CR 14-053 Rule Text

Secretary to the Commission

Attachments

SJP:JMD

REPORT TO THE LEGISLATURE

A.   TEXT OF THE RULE

The text of the rule is included as Attachment A2.

B.   PLAIN LANGUAGE ANALYSIS

1.   Statutory Authority and Explanation of Authority

This rulemaking is authorized under ss. 196.02 (1) and (3), 196.378, 196.49 (3) and 227.11, Stats.

Section 227.11 authorizes agencies to promulgate administrative rules. Section 196.02 (1) authorizes the commission to do all things necessary and convenient to its jurisdiction. Section 196.02 (3) grants the commission specific authority to promulgate rules. Section 196.378, Stats., authorizes the commission to promulgate a variety of rules concerning renewable energy credits. Section 196.49 (3) authorizes the Commission to promulgate rules about granting certificates.

Statutes Interpreted

This rule interprets ss. 196.378 and 196.49, Stats.

Related Statutes or Rules

None.

2.   Brief Summary of Proposed Rules

The purpose of this rulemaking is to amend chs. PSC 112, PSC 133, and PSC 184 of the Wisconsin Administrative Code relating to the requirement to obtain a certificate or approval prior to beginning a proposed project, to conform with the statutory changes in s. 196.49(5g), Stats., made by 2011 Wisconsin Act 155. This will be accomplished by updating the revised cost thresholds for certification or approval in the rules.

Furthermore, this rulemaking will amend ch. PSC 118, relating to displacement facilities, to conform with the statutory changes made in s. 196.378(3)(a)1m., Stats., by 2013 Wisconsin Act 300. This will be accomplished in the following ways: (1) strike the requirement that a displacement facility be placed in service on or after June 3, 2010, to be consistent with the statute; and (2) revise the reference to “in the entire area served by the Midcontinent Independent System Operator” as a basis for the displacement percentage to streamline the process for determining the displacement percentage.

3.   Comparison with Existing or Proposed Federal Regulations

The commission is not aware of any existing or proposed federal legislation concerning the matters addressed in this rulemaking.

4.   Comparison with Similar Rules in Adjacent States

The commission is not aware of any surrounding states that limit what facilities may be used to create renewable energy credits by the date on which the facilities went into service. The commission is not aware of any surrounding states that determine whether certification or approval is necessary by the cost of the project.

5.   Summary of Factual Data and Analytical Methodologies Used

Most of this rule merely conforms the rules to statutory changes. Changing the existing reference to the "Midcontinent Independent System Operator” so that the rule refers to the more accurate information submitted to the commission by utilities is based on experience with the program.

6.   Effect on Small Business

This rule will not affect small businesses. The s. 227.114(12), Stats., definition of “small business” states that to be considered a small business, the business must not be dominant in its field. Because electric, gas, and water utilities are monopolies in their service territories, they are dominant in their fields and, so, are not small businesses.

7.   Agency Contact People

Questions regarding this matter should be directed to docket coordinator Andrew Kell, at [phone] or [e-mail]. Small business questions should be directed to Christine Swailes at [phone] or [e-mail]. Media questions should be directed to the Communications Director at [phone]. Hearing or speech-impaired individuals may also use the commission’s TTY number, if calling from Wisconsin [phone], if calling from outside Wisconsin [phone].

8.   Accommodation

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs to receive this document in a different format should contact the docket coordinator, as indicated in the following paragraph, as soon as possible.

C.   FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS

This rulemaking should have either no or minimal economic impact. The Fiscal Estimate and Economic Impact Analysis for this rulemaking is included as Attachment A1.

D.   BASIS AND PURPOSE OF RULES

The purpose of the rulemaking is to amend chs. PSC 112, PSC 133, and PSC 184 of the Wisconsin Administrative Code relating to the requirement to obtain a certificate or approval prior to beginning a proposed project, to conform with the statutory changes in s. 196.49 (5g), Stats., made by 2011 Wisconsin Act 155. This is accomplished by referencing where the revised cost thresholds for certification or approval may be found.

Furthermore, this rulemaking amends ch. PSC 118, relating to displacement facilities, to conform with the statutory changes made in s. 196.378 (3) (a) 1m., Stats., by 2013 Wisconsin Act 300. This is accomplished in the following ways: (1) strike the requirement that a displacement facility be placed in service on or after June 3, 2010; and (2) revise the reference to “in the entire area served by the Midcontinent Independent System Operator” as a basis for the displacement percentage to streamline the process for determining the displacement percentage.

E.   SUMMARY OF PUBLIC COMMENTS AND COMMISSION RESPONSES

A summary of public comments and commission responses are included as Attachment A3.

F.   APPEARANCES AT PUBLIC HEARING

Mr. Todd Stuart, representing the Wisconsin Industrial Group, appeared but did not testify.

G.   ANY CHANGES TO THE FISCAL ESTIMATE OR THE ANALYSIS UNDER s. 227.14(2), STATS.

None.

H.   RESPONSE TO LEGISLATIVE COUNCIL COMMENTS

A copy of the Legislative Council report is included as Attachment A4. Responses to the comments are below:

2.

Form, Style and Placement in Administrative Code

a.   Agree. Change made.

  b.   Agree. Change made.

c.   Disagree. Keeping the list of exceptions attached to the general rule is clearer.

  d.   Agree. Change made.

4.

Adequacy of References to Related Statutes, Rules and Forms

Agree. Change made.

5.

Clarity, Grammar, Punctuation and Use of Plain Language

a.

Agree. Change made.

b.   Agree. The referenced provisions have been rewritten.

c.   Agree. Change made.

I.   MISCELLANEOUS DETERMINATIONS

The commission’s Wisconsin Environmental Policy Act coordinator examined whether the rules will have an environmental impact and concluded that they will not. Commission staff also considered whether the rules will impact housing under s. 227.115, Stats., and concluded that they will not.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012) Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor   P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone] ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis

☑ Original   ☐ Updated   Corrected

2. Administrative Rule Chapter, Title and Number

Chapters PSC 112, PSC 118, PSC 133, and PSC 184

3. Subject

This rulemaking addresses two different areas: cost thresholds for needing to obtain a certificate or approval prior to beginning a proposed project, and displacement facilities. The cost thresholds will be updated, the requirement that a displacement facility be placed in service on or after June 3, 2010 will be stricken and the reference to the Midcontinent Independent System Operator as a basis for the displacement percentage will be revised to streamline the process for determining the displacement percentage

4. Fund Sources Affected

5. Chapter 20, Stats. Appropriations Affected

☐ GPR   ☐ FED   ☐ PRO   ☐ PRS   ☐ SEG   ☐ SEG-S

6. Fiscal Effect of Implementing the Rule

☑ No Fiscal Effect ☐ Indeterminate

☐ Increase Existing Revenues ☐ Decrease Existing Revenues

☐ Increase Costs ☐ Could Absorb Within Agency’s Budget ☐ Decrease Cost

7. The Rule Will Impact the Following (Check All That Apply)

☐ State’s Economy ☐ Local Government Units

☐ Specific Businesses/Sectors ☐ Public Utility Rate Payers ☐ Small Businesses (if checked, complete Attachment A)

8. Would Implementation and Compliance Costs Be Greater Than $20 million? ☐ Yes   ☑ No

9. Policy Problem Addressed by the Rule

The rule making amends relevant sections of chs. PSC 112, PSC 133, and PSC 184 to conform with 2011 Wisconsin Act 155, and amends relevant sections of PSC 118 to conform with 2013 Wisconsin Act 300. Finally, getting data from the Midcontinent Independent System Operator has turned out to be time-consuming and less detailed than necessary.

10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.

All electric, gas and water utilities, Citizens’ Utility Board, League of Wisconsin Municipalities, , Wisconsin Industrial Energy Group, Municipal Electric Utilities of Wisconsin, Wisconsin Towns Association, Wisconsin Counties Association, Wisconsin Utilities Association, Wisconsin Paper Council, Clean Wisconsin, RENEW Wisconsin.

11. Identify the local governmental units that participated in the development of this EIA.

League of Wisconsin Municipalities, Municipal Electric Utilities of Wisconsin, Wisconsin Towns Association, Wisconsin Counties Association.

12. Summary of Rule’s Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State’s Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)

None or minimal. Any economic impact occurred when the statutes were passed. This rulemaking just brings the rules into compliance.

13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule

This will bring the rules into conformity with the statutes and will streamline the process for determining the percentage of electricity from conventional resources that has been displaced by renewable energy. This percentage is used to calculate the amount of renewable resource credits that may be created.

14. Long Range Implications of Implementing the Rule

Keeps the rules in conformity with the statutes. Less confusion.

15. Compare With Approaches Being Used by Federal Government

The federal government does not have a similar program.

16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)

The commission is not aware of any surrounding states that limit what facilities may be used to recreate renewable energy credits by the date on which the facilities went into service. The commission is not aware of any surrounding states that determine whether certification or approval is necessary by the cost of the project.

17. Contact Name

18. Contact Phone Number

Lisa Farrell

608-267-9086

This document can be made available in alternate formats to individuals with disabilities upon request.

TEXT OF THE RULES

SECTION 1. PSC 112.05 (3) (a) (intro.) is renumbered 112.05 (3) (a), and amended to read:

PSC 112.05 (3) (a) Cost thresholds for projects requiring commission review and approval under this section are as follows: those specified in s. 196.49 (5g) (a), Stats., as revised under par. (b).

SECTION 2. PSC 112.05 (3) (a) 1. to 3. are repealed.