SB177-SSA1,3,4
1(2) The commission, in consultation with the department of natural resources,
2shall promulgate rules establishing a method for assessing each major utility an
3amount that is proportionate to its fraction of the total amount of mercury emissions
4from major utilities in this state.
SB177-SSA1, s. 5 5Section 5. 285.11 (19) of the statutes is created to read:
SB177-SSA1,3,86 285.11 (19) Conduct, or contract with other persons to conduct, research on the
7effects of mercury emissions on human health and the environment and research on
8methods for reducing those emissions.
SB177-SSA1, s. 6 9Section 6. Subchapter V (title) of chapter 285 [precedes 285.41] of the statutes
10is amended to read:
SB177-SSA1,3,1111 CHAPTER 285
SB177-SSA1,3,1612 SUBCHAPTER V
13 SULFUR DIOXIDE AND NITROGEN
14 OXIDE EMISSION
15 RATES AND GOALS;
16 MERCURY EMISSION LIMITS
SB177-SSA1, s. 7 17Section 7. 285.50 of the statutes is created to read:
SB177-SSA1,3,18 18285.50 Mercury emission limits. (1) Definitions. In this section:
SB177-SSA1,3,2019 (a) "Allowance" means a limited authorization to emit one pound of mercury
20in one year.
SB177-SSA1,3,2321 (b) "Baseline mercury emissions" means the average annual mercury
22emissions of a stationary source in 1997, 1998 and 1999, as determined under sub.
23(1m).
SB177-SSA1,3,2424 (c) "Boiler" means a solid fossil fuel-fired combustion unit.
SB177-SSA1,4,2
1(d) "Major utility" means a Class A utility, as defined in s. 199.03 (4), that
2generates electricity or an electrical cooperative association organized under ch. 185.
SB177-SSA1,4,63 (e) "Modify" means to make one or more physical changes in, or changes in the
4method of operation of, a stationary source so that the annual mercury emissions of
5the stationary source increase by 5 pounds or more over the baseline mercury
6emissions of the stationary source.
SB177-SSA1,4,97 (f) "Nonboiler source" means a stationary source that emits mercury and that
8is not a solid fossil fuel-fired combustion unit. "Nonboiler source" includes a
9combustion unit that is fired with fossil fuel that is not solid.
SB177-SSA1,4,1310 (g) "Partially regulated boiler" means a boiler that is not owned by a
11municipality, this state or a major utility if the total annual mercury emissions from
12all stationary sources that are located on the site on which the boiler is located exceed
1310 pounds in any year.
SB177-SSA1,4,1714 (h) "Regulated government-owned boiler" means a boiler that is owned by a
15municipality or this state if the total annual mercury emissions from all stationary
16sources that are located on the site on which the boiler is located exceed 10 pounds
17in any year.
SB177-SSA1,4,2018 (i) "Regulated major utility boiler" means a boiler that is owned by a major
19utility if the total annual mercury emissions from all stationary sources that are
20located on the site on which the boiler is located exceed 10 pounds in any year.
SB177-SSA1,4,2321 (j) "Regulated nonboiler source" means a nonboiler source if the total annual
22mercury emissions from all stationary sources that are located on the site on which
23the nonboiler source is located exceed 10 pounds in any year.
SB177-SSA1,4,2524 (k) "Site" means contiguous property that is under common ownership or
25control.
SB177-SSA1,5,7
1(1m) Determination of mercury emissions. The department shall establish a
2methodology for determining the annual mercury emissions of boilers and other
3stationary sources that emit mercury. Using this methodology, the department shall
4determine a baseline mercury emission level for each regulated major utility boiler,
5regulated government-owned boiler, regulated nonboiler source and partially
6regulated boiler by averaging the annual mercury emissions of the boiler or the
7nonboiler source in 1997, 1998 and 1999.
SB177-SSA1,5,13 8(2) Emission limits; major utility and government-owned boilers. (a) New
9and modified boilers.
1. After the department establishes a methodology under sub.
10(1m), no person may construct a new regulated major utility boiler or a new regulated
11government-owned boiler until the person obtains mercury emission reductions, as
12provided in sub. (4), equal to 150% of the annual mercury emissions from the new
13boiler.
SB177-SSA1,5,1814 2. After the department establishes a methodology under sub. (1m), no person
15may modify a regulated major utility boiler or regulated government-owned boiler
16until the person obtains mercury emission reductions, as provided in sub. (4), equal
17to 150% of the increased mercury emissions resulting from the modification of the
18boiler.
SB177-SSA1,5,2319 (b) Existing boilers. 1. Beginning in the year after the year in which the
20department establishes a methodology under sub. (1m), the annual mercury
21emissions from a regulated major utility boiler or regulated government-owned
22boiler to which par. (a) does not apply may not exceed the baseline mercury emissions
23of the boiler, except as provided in sub. (4) (b).
SB177-SSA1,6,224 2. In 2005 to 2009, the owner or operator of a regulated major utility boiler or
25regulated government-owned boiler to which par. (a) 1. does not apply shall annually

1obtain mercury emission reductions, as provided in sub. (4), equal to 20% of the
2baseline mercury emissions of the boiler.
SB177-SSA1,6,83 3. In 2010 to 2014, the owner or operator of a regulated major utility boiler or
4regulated government-owned boiler to which par. (a) 1. does not apply shall annually
5obtain mercury emission reductions, as provided in sub. (4), equal to 50% of the
6baseline mercury emissions of the boiler or equal to the difference between the
7baseline mercury emissions of the boiler and the average annual mercury emissions
8of the boiler during 2005 to 2009, whichever is greater.
SB177-SSA1,6,149 4. Beginning in 2015, the owner or operator of a regulated major utility boiler
10or regulated government-owned boiler to which par. (a) 1. does not apply shall
11annually obtain mercury emission reductions, as provided in sub. (4), equal to 90%
12of the baseline mercury emissions of the boiler or equal to the difference between the
13baseline mercury emissions of the boiler and the average annual mercury emissions
14of the boiler during the preceding 5-year period, whichever is greater.
SB177-SSA1,6,19 15(3) Emission limits; nonboiler sources. (a) New and modified nonboiler
16sources.
1. After the department establishes a methodology under sub. (1m), no
17person may construct a new regulated nonboiler source until the person obtains
18mercury emission reductions, as provided in sub. (4), equal to 150% of the annual
19mercury emissions from the new nonboiler source.
SB177-SSA1,6,2320 2. After the department establishes a methodology under sub. (1m), no person
21may modify a regulated nonboiler source until the person obtains mercury emission
22reductions, as provided in sub. (4), equal to 150% of the increased mercury emissions
23resulting from the modification of the nonboiler source.
SB177-SSA1,7,324 (b) Existing nonboiler sources. 1. Beginning in the year after the year in which
25the department establishes a methodology under sub. (1m), the annual mercury

1emissions from a regulated nonboiler source to which par. (a) does not apply may not
2exceed the baseline mercury emissions of the nonboiler source, except as provided in
3sub. (4) (b).
SB177-SSA1,7,74 2. In 2005 to 2009, the owner or operator of a regulated nonboiler source to
5which par. (a) 1. does not apply shall annually obtain mercury emission reductions,
6as provided in sub. (4), equal to 20% of the baseline mercury emissions of the
7nonboiler source.
SB177-SSA1,7,138 3. In 2010 to 2014, the owner or operator of a regulated nonboiler source to
9which par. (a) 1. does not apply shall annually obtain mercury emission reductions,
10as provided in sub. (4), equal to 50% of the baseline mercury emissions of the
11nonboiler source or equal to the difference between the baseline mercury emissions
12of the nonboiler source and the average annual mercury emissions of the nonboiler
13source during 2005 to 2009, whichever is greater.
SB177-SSA1,7,1914 4. Beginning in 2015, the owner or operator of a regulated nonboiler source to
15which par. (a) 1. does not apply shall annually obtain mercury emission reductions,
16as provided in sub. (4), equal to 90% of the baseline mercury emissions of the
17nonboiler source or equal to the difference between the baseline mercury emissions
18of the nonboiler source and the average annual mercury emissions of the nonboiler
19source during the preceding 5-year period, whichever is greater.
SB177-SSA1,8,2 20(3e) Increase in required reductions. Notwithstanding the mercury emission
21reductions required to be obtained in sub. (2) (b) 2. to 4. and (3) (b) 2. to 4., if the owner
22or operator of a stationary source subject to those requirements fails to obtain the
23required mercury emission reductions under sub. (2) (b) or (3) (b) in a year, the
24department shall increase the amount of mercury emission reductions that the
25owner or operator must obtain under sub. (2) (b) or (3) (b) for the next year by 5 times

1the difference between the amount of emission reductions required and the amount
2of emission reductions obtained.
SB177-SSA1,8,7 3(3m) Emission reductions and goals; partially regulated boilers. (a) New
4and modified boilers.
1. After the department establishes a methodology under sub.
5(1m), no person may construct a new partially regulated boiler until the person
6obtains mercury emission reductions, as provided in sub. (4), equal to 150% of the
7annual mercury emissions from the new boiler.
SB177-SSA1,8,118 2. After the department establishes a methodology under sub. (1m), no person
9may modify a partially regulated boiler until the person obtains mercury emission
10reductions, as provided in sub. (4), equal to 150% of the increased mercury emissions
11resulting from the modification of the boiler.
SB177-SSA1,8,1312 (b) Existing partially regulated boilers. It is the goal of this state that annual
13mercury emissions from a partially regulated boiler do not exceed the following:
SB177-SSA1,8,1514 1. In the year after the year in which the department establishes a methodology
15under sub. (1m) to 2004, the baseline mercury emissions of the boiler.
SB177-SSA1,8,1616 2. In 2005 to 2009, 80% of the baseline mercury emissions of the boiler.
SB177-SSA1,8,1717 3. In 2010 to 2014, 50% of the baseline emissions of the boiler.
SB177-SSA1,8,1818 4. Beginning in 2015, 10% of the baseline mercury emissions of the boiler.
SB177-SSA1,9,219 (c) Report on emissions from partially regulated boilers. If the department
20determines, in 2006 or 2011, that the goals in par. (b) are not being met, the
21department shall prepare a report describing the extent to which the goals are not
22being met and any measures that the department recommends should be taken
23because the goals are not being met. The department shall submit any report
24required under this paragraph to the chief clerk of each house of the legislature for

1distribution to the appropriate standing committees of the legislature under s.
213.172 (3).
SB177-SSA1,9,5 3(4) Compliance. (a) A person who owns a stationary source that is subject to
4sub. (2) (a), (3) (a) or (3m) (a) may obtain the required emission reductions by one or
5more of the following methods:
SB177-SSA1,9,86 1. Reducing the annual mercury emissions from another stationary source
7owned by the person if the reduction is permanent and enforceable and is not
8otherwise required by this section or other state or federal law.
SB177-SSA1,9,129 2. Entering into an agreement under which another person reduces the annual
10mercury emissions from a stationary source owned by the other person if the
11reduction is permanent and enforceable and is not otherwise required by this section
12or other state or federal law.
SB177-SSA1,9,1813 (b) A person who owns a stationary source that is subject to sub. (2) (b) 1. or (3)
14(b) 1. may only increase the annual mercury emissions in a year above the baseline
15mercury emissions for that stationary source if the person reduces mercury
16emissions in that year from another stationary source on the same site by the amount
17of the increase and if the emission reduction is not otherwise required by this section
18or other state or federal law.
SB177-SSA1,9,2119 (c) Except as provided in par. (d) or (e), a person who owns a stationary source
20that is subject to sub. (2) (b) 2. to 4. or (3) (b) 2. to 4. may obtain the required emission
21reductions by one or more of the following methods:
SB177-SSA1,9,2322 1. Reducing mercury emissions from that stationary source or another
23stationary source on the same site.
SB177-SSA1,9,2424 2. Using banked or traded allowances as provided under sub. (5).
SB177-SSA1,9,2525 3. Using small source mercury reduction allowances as provided under sub. (6).
SB177-SSA1,10,5
1(d) 1. A person who owns or operates a stationary source that is regulated under
2sub. (2) (b) 2. to 4. may not obtain more than 50% of the required emission reductions
3for that stationary source by using allowances from a stationary source that is
4regulated under sub. (3), by using small source mercury reduction allowances or by
5using a combination of those methods.
SB177-SSA1,10,106 2. A person who owns or operates a stationary source that is regulated under
7sub. (3) (b) 2. to 4. may not obtain more than 50% of the required emission reductions
8for that stationary source by using allowances from a stationary source that is
9regulated under sub. (2), by using small source mercury reduction allowances or by
10using a combination of those methods.
SB177-SSA1,10,1411 (e) 1. In 2005 to 2009, a person who owns a stationary source that is regulated
12under sub. (2) (b) 2. to 4. or (3) (b) 2. to 4. may not obtain more than 25% of the
13required emission reductions for that stationary source by using small source
14mercury reduction allowances.
SB177-SSA1,10,1815 2. In 2010 to 2014, a person who owns a stationary source that is regulated
16under sub. (2) (b) 2. to 4. or (3) (b) 2. to 4. may not obtain more than 15% of the
17required emission reductions for that stationary source in 2010 to 2014 by using
18small source mercury reduction allowances.
SB177-SSA1,10,2219 3. After 2014, a person who owns a stationary source that is regulated under
20sub. (2) (b) 2. to 4. or (3) (b) 2. to 4. may not obtain any of the required emission
21reductions for that stationary source by using small source mercury reduction
22allowances.
SB177-SSA1,11,4 23(5) Emission allowance system; banking and trading emission allowances. (a)
24Allowances. The department shall promulgate rules for a mercury emission
25allowance system that assigns allowances to each stationary source that is subject

1to sub. (2) (b) or (3) (b). Under the system, the department shall notify the owner or
2operator of a stationary source of the number of allowances for that stationary source
3for up to 5 years in advance, based on the requirements of sub. (2) (b) or (3) (b) and
4of sub. (3e).
SB177-SSA1,11,135 (b) Emission allowance banking and trading. The department shall
6promulgate rules for quantifying and certifying reductions in mercury emissions
7from stationary sources that are subject to sub. (2) or (3) and for a system for banking
8and trading allowances. The department may allow owners and operators who
9reduce mercury emissions from partially regulated boilers to obtain allowances that
10may be banked and traded for, if the reductions are quantifiable, permanent and
11enforceable. The department may not allow the banking or trading of reductions in
12mercury emissions if those reductions are required by federal law or by state law
13other than this section.
SB177-SSA1,11,15 14(6) Small source mercury reduction allowances. (a) A person may obtain
15small source mercury reduction allowances in any of the following ways:
SB177-SSA1,11,1716 1. Conducting a small source mercury reduction project that is approved by the
17department.
SB177-SSA1,11,1918 2. Entering into an agreement under which another person conducts a small
19source mercury reduction project that is approved by the department.
SB177-SSA1,11,2120 3. Providing funds to the department for conducting a small source mercury
21reduction project.
SB177-SSA1,12,222 (b) The department shall issue small source mercury reduction allowances to
23a person under this subsection in amounts equal to the amounts of reductions in
24emissions of mercury that are reasonably likely to occur because of the small source

1mercury reduction project undertaken or sponsored by the person, as determined
2based on the rules promulgated under par. (c).
SB177-SSA1,12,73 (c) The department shall promulgate rules for issuing small source mercury
4reduction allowances. In the rules, the department shall include criteria for
5determining the amounts of reductions in emissions of mercury that are reasonably
6likely to occur because of a small source mercury reduction project, including all of
7the following:
SB177-SSA1,12,118 1. The ability of the department to determine the actual amounts of reductions
9in emissions of mercury resulting from a small source mercury reduction project,
10taking into consideration any proposed measurement, monitoring and evaluation of
11the project.
SB177-SSA1,12,1312 2. The degree of certainty that the predicted amounts of reductions in emissions
13of mercury will result from the small source mercury reduction project.
SB177-SSA1,12,1514 3. The extent to which the reductions in emissions of mercury would occur in
15the absence of the small source mercury reduction project.
SB177-SSA1,12,1716 4. The period during which the reductions in emissions of mercury resulting
17from the small source mercury reduction project will continue.
SB177-SSA1,12,22 18(7) Storage or disposal. A person who is required to comply with sub. (2) or
19(3), who seeks to obtain an allowance under sub. (5) or who conducts a small source
20mercury reduction project under sub. (6) shall demonstrate to the department that
21mercury obtained in the course of taking those actions and disposed of or placed in
22storage will not be emitted into the atmosphere through reuse or recycling.
SB177-SSA1,13,4 23(8) Report. (a) The department shall prepare 2 reports assessing the
24effectiveness of the mercury emission reduction program under this section. The
25department shall prepare the first report by October 31, 2006, and the 2nd report by

1October 31, 2011. In the reports under this subsection, the department may include
2an assessment of the effectiveness of any other mercury reduction or elimination
3programs in this state. In the reports under this subsection,the department shall
4include all of the following:
SB177-SSA1,13,85 1. An analysis of the impacts of the trading program under sub. (5) on water
6quality in specific locations and a description of the actions that the department will
7take to address any adverse impacts of the trading program on water quality in
8specific locations.
SB177-SSA1,13,119 2. An assessment of whether the 50% and 90% reductions in mercury emissions
10in 2010 and 2015 under subs. (2) (b) and (3) (b) are achievable, considering any
11scientific or technological developments.
SB177-SSA1,13,1312 3. Recommendations for any adjustments to the percentage reductions under
13subs. (2) (b) and (3) (b) that the department determines are appropriate.
SB177-SSA1,13,1614 (b) The department shall submit the reports required under this subsection to
15the chief clerk of each house of the legislature for distribution to the appropriate
16standing committees of the legislature under s. 13.172 (3).
SB177-SSA1,13,19 17(9) No impact on other provisions. Nothing in this section exempts a person
18from any provision of ss. 285.01 to 285.39 or 285.51 to 285.87. Compliance with this
19section is not a defense to a violation of any of those provisions.
SB177-SSA1,13,22 20(10) Cooperation. The department shall work with organizations, other
21states, the federal environmental protection agency and this state's congressional
22delegation to establish all of the following:
SB177-SSA1,13,2423 (a) Nationwide regulations of mercury emissions at least as stringent as those
24in this section.
SB177-SSA1,13,2525 (b) A nationwide ban on the reuse or recycling of mercury.
SB177-SSA1,14,1
1(c) A ban on the export of mercury.
SB177-SSA1,14,32 (d) International regulations of mercury emissions at least as stringent as
3those in this section.
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