2005 Wisconsin Act 141

2. The commission shall require that municipal utilities and retail electric cooperatives file reports under subd. 1. electronically, in a format that allows for tabulation, comparison, and other analysis of the reports.

3. The commission shall maintain reports filed under subd. 1. for at least 6 years.

(8) Compliance. An energy utility that spends the full amount required under sub. (3) (b) 2. in any year is considered to have satisfied its requirements under this section for that year.

141,70 Section 70. 196.378 (1) (a) of the statutes is renumbered 196.378 (1) (ar) amended to read:

196.378 (1) (ar) "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.

141,71 Section 71. 196.378 (1) (ag) of the statutes is created to read:

196.378 (1) (ag) "Baseline renewable percentage" means the average of an energy provider's renewable energy percentage for 2001, 2002, and 2003.

141,72 Section 72. 196.378 (1) (bm) of the statutes is repealed.

141,73 Section 73. 196.378 (1) (e) of the statutes is repealed.

141,74 Section 74. 196.378 (1) (f) of the statutes is repealed.

141,75 Section 75. 196.378 (1) (fg) of the statutes is created to read:

196.378 (1) (fg) "Renewable energy" means electricity derived from a renewable resource.

141,76 Section 76. 196.378 (1) (fm) of the statutes is created to read:

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 in that year:

1. The electric provider's total renewable energy in that year.

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

141,77 Section 77. 196.378 (1) (fr) of the statutes is created to read:

196.378 (1) (fr) "Renewable energy supplier" means a person from whom an electric provider purchases renewable energy at wholesale.

141,78 Section 78. 196.378 (1) (g) of the statutes is amended to read:

196.378 (1) (g) "Renewable facility" means an installed and operational electric generating facility 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, located in or outside this state, that generates renewable energy.

141,79 Section 79. 196.378 (1) (i) of the statutes is amended to read:

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

141,80 Section 80. 196.378 (1) (n) of the statutes is repealed.

141,81 Section 81. 196.378 (1) (o) of the statutes is repealed and recreated to read:

196.378 (1) (o) "Total renewable energy" means the total amount of renewable energy that the electric provider sold to its customers or members in a year. "Total renewable energy" does not include any energy that is used to comply with the renewable energy requirements of another state. "Total renewable energy" includes all of the following:

1. Renewable energy supplied by a renewable facility owned or operated by an affiliated interest or wholesale supplier of an electric provider and allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier.

2. Renewable energy purchased by an affiliated interest or wholesale supplier of an electric provider from a renewable facility that is not owned or operated by the affiliated interest or wholesale supplier, which renewable energy is allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier.

141,82 Section 82. 196.378 (1) (p) of the statutes is created to read:

196.378 (1) (p) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).

141,83 Section 83. 196.378 (2) (a) of the statutes is repealed and recreated to read:

196.378 (2) (a) 1. No later than June 1, 2016, the commission shall prepare a report stating whether, by December 31, 2015, the state has met a goal of 10 percent of all electric energy consumed in the state being renewable energy. If the goal has not been achieved, the 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).

2. Except as provided in pars. (e), (f), and (g):

a. For the years 2006, 2007, 2008, and 2009, each electric provider may not decrease its renewable energy percentage below the electric provider's baseline renewable percentage.

b. For the year 2010, each electric provider shall increase its renewable energy percentage so that it is at least 2 percentage points above the electric provider's baseline renewable percentage.

c. For the years 2011, 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.

d. For the year 2015, 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.

e. For each year after 2015, each electric provider may not decrease its renewable energy percentage below the electric provider's renewable energy percentage required under subd. 2. d.

141,84 Section 84. 196.378 (2) (b) 1. of the statutes is amended to read:

196.378 (2) (b) 1. Total retail electric sales The total amount of electricity that an electric provider sold to retail customers or members in a year shall be calculated on the basis of an average of an the electric provider's retail electric sales in this state during the prior 3 years.

141,85 Section 85. 196.378 (2) (b) 1m. of the statutes is created to read:

196.378 (2) (b) 1m. The amount of electricity derived from hydroelectric renewable resources that an electric provider may count toward satisfying the requirements of par. (a) 2. shall be all electricity provided by hydroelectric power that the electric provider purchased in the reporting year plus all of the following:

a. The average of the amounts of hydroelectric power generated by facilities owned or operated by the electric provider for 2001, 2002, and 2003, 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.

b. The amount of hydroelectric power generated in the reporting year by facilities owned or operated by the electric provider that are initially placed in service on or after January 1, 2004.

141,86 Section 86. 196.378 (2) (b) 3. of the statutes is repealed.

141,87m Section 87m. 196.378 (2) (b) 4. of the statutes is repealed and recreated to read:

196.378 (2) (b) 4. A wholesale supplier may sell credits that it creates and may aggregate and allocate the credits that it creates among its members or customers. A member or customer may sell credits or portions of a credit allocated to the member or customer by the wholesale supplier.

141,88 Section 88. 196.378 (2) (b) 5. of the statutes is created to read:

196.378 (2) (b) 5. An electric provider that purchases renewable energy from a renewable energy supplier may use an allocated share of the renewable energy sold by the renewable energy supplier to comply with a requirement under par. (a) 2. or to create a credit under sub. (3) (a), provided that the cost of the renewable energy is included in the price the electric provider paid the renewable energy supplier.

141,89 Section 89. 196.378 (2) (c) of the statutes is amended to read:

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) 2. and the electric provider's implementation plans for future compliance. Reports under this paragraph may include certifications from wholesale suppliers renewable energy suppliers regarding the sources and amounts of renewable energy supplied to an the 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) 2.

141,90 Section 90. 196.378 (2) (e) of the statutes is repealed and recreated to read:

196.378 (2) (e) 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 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:

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 applicant's system.

2. Notwithstanding reasonable efforts to protect against unreasonable increases in rates of the applicant's ratepayers or members, compliance with the deadline will result in unreasonable increases in rates of the applicant's ratepayers or members, including increases that are due to the discontinuation of federal renewable energy tax credits or other federal policies intended to reduce the acquisition costs of renewable energy.

3. Notwithstanding reasonable efforts to obtain required approvals, the applicant cannot comply with the deadline because the applicant or a supplier has experienced or will experience delays in receiving required siting or permitting approvals for renewable energy projects.

4. Notwithstanding reasonable efforts to secure transmission service, the applicant cannot comply with the deadline because the applicant faces transmission constraints that interfere with the economic and reliable delivery of renewable energy to the applicant's system.

141,91 Section 91. 196.378 (2) (f) of the statutes is created to read:

196.378 (2) (f) A wholesale electric cooperative for its members or a municipal electric company for its members may delay compliance with a deadline specified in par. (a) 2. for any reason specified in par. (e) 1. to 4. A wholesale electric cooperative or a municipal electric company that delays compliance with a deadline specified in par. (a) 2. 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 and its members, the members cannot meet the deadline for the stated reason.

141,92 Section 92. 196.378 (2) (g) of the statutes is created to read:

196.378 (2) (g) 1. In this paragraph, "energy consumer advocacy group" means a group or organization that advocates on behalf of its members' interests regarding the cost, availability, and reliability of energy or regarding utility regulation.

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 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.

141,93 Section 93. 196.378 (3) (a) of the statutes is renumbered 196.378 (3) (a) 1. and amended to read:

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. 2. 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) 2. The commission shall promulgate rules that establish requirements for the creation and use of a renewable resource credit created on or after January 1, 2004, including calculating the amount of a renewable resource credit, and for the tracking of renewable resource credits by a regional renewable resource credit tracking system. The rules shall specify the manner for aggregating or allocating credits under this subdivision or sub. (2) (b) 4. or 5.

141,94 Section 94. 196.378 (3) (a) 2. of the statutes is created to read:

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 on or after January 1, 2004, from such a renewable facility, except a renewable facility owned by a retail customer of an electric provider, is limited to the incremental increase in output from the renewable facility that is due to capacity improvements made on or after January 1, 2004.

141,95 Section 95. 196.378 (3) (b) of the statutes is amended to read:

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

141,96 Section 96. 196.378 (3) (c) of the statutes is created to read:

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.

141,97 Section 97. 196.378 (4m) of the statutes is created to read:

196.378 (4m) Additional renewable resources requirements. (a) The commission may not impose on an electric provider any requirement that increases the electric provider's renewable energy percentage beyond that required under sub. (2) (a) 2. If an electric provider is in compliance with the requirements of sub. (2) (a) 2., 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.

(b) An electric utility may, with commission approval, administer or fund a program that increases the electric utility's renewable energy percentage beyond that required under sub. (2) (a) 2. The commission may not order an electric utility to administer or fund a program under this paragraph.

141,98 Section 98. 196.378 (4r) of the statutes is created to read:

196.378 (4r) Reports. No later than July 1 of each even-numbered year, the commission shall submit a report to the governor and chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2) that evaluates the impact of the requirements of this section on the rates and revenue requirements of electric providers and compares that impact with the impact that would have occurred if renewable energy practices of electric providers were subject to market forces in the absence of the requirements of this section.

141,99 Section 99. 196.378 (5) (intro.) of the statutes is amended to read:

196.378 (5) Penalty. (intro.) Any person who violates sub. (2) or any wholesale renewable energy supplier who provides an electric provider with a false or misleading certification 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:

141,100 Section 100. 285.48 (4) (a) of the statutes is amended to read:

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) 2., 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).

141,101 Section 101. 285.48 (4) (b) of the statutes is amended to read:

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).

141,102 Section 102 . Nonstatutory provisions.

(1) Initial contracts. To promote administrative efficiency and build on existing, successful programs, the public service commission shall direct energy utilities, as defined in section 196.374 (1) (e) of the statutes, as affected by this act, to negotiate initial contracts under section 196.374 (2) (a) 1. of the statutes, as affected by this act, with the holders of current contracts under section 16.957 (3) (b), 2003 stats., to the extent that the programs administered by those contract holders are functioning effectively and accomplishing most or all of the goals set for them.

(2) Corn-burning furnace pilot program. The department of administration shall conduct a pilot program under section 16.957 (2) (b) 1. b. of the statutes during the winter heating season between November 1, 2006, and March 1, 2007, to determine the feasibility and cost-effectiveness of the use of residential space heating equipment in this state that is fueled by biomass, as defined in section 196.378 (1) (a) of the statutes, from corn plants. The department of administration shall report to the legislature the results of the pilot program in the report required under section 16.957 (2) (d) 4. of the statutes.

(3) 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.

(4) 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.

(5) Public service commission prohibitions.

(a) In this subsection:

1. "Commission" means the public service commission.

2. "Energy efficiency program" has the meaning given in section 196.374 (1) (d), as affected by this act.