Amendment SSA2-SB177

SENATE SUBSTITUTE AMENDMENT 2, TO 1999 SENATE BILL 177

March 7, 2000 - Offered by Joint committee on Finance.

SB177-SSA2,1,5 An Act to amend 16.957 (4) (c) 2., 20.505 (10) (s) and subchapter V (title) of chapter 285 [precedes 285.41]; and to create 15.347 (5), 20.370 (2) (bj), 20.370 (2) (bk), 285.11 (19) and 285.50 of the statutes; relating to: a mercury control program from certain sources, research concerning mercury emissions, granting rule-making authority and making appropriations.

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

SB177-SSA2, s. 1 Section 1. 15.347 (5) of the statutes is created to read:

SB177-SSA2,1,9 15.347 (5) Mercury control council. There is created in the department of natural resources a mercury control council consisting of up to 12 members appointed by the secretary of natural resources.

SB177-SSA2, s. 2 Section 2. 16.957 (4) (c) 2. of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

SB177-SSA2,2,12 16.957 (4) (c) 2. `Energy conservation and efficiency and renewable resource funding.' For fiscal year 1999-2000, a portion of the public benefits fee shall be in an amount that, when added to 50% of the estimated public benefits fees charged by municipal utilities and retail electric cooperatives under sub. (5) (a) for that fiscal year, shall equal $20,000,000. In each fiscal year after fiscal year 1999-2000, a portion of the public benefits fee shall be the amount determined under this subdivision for fiscal year 1999-2000, except that if the department determines to reduce or discontinue a program under sub. (2) (b) 2., the department shall reduce the amount accordingly. If the department reduces the amount, the department shall ensure that sufficient funds are available to make the transfer from the appropriation account under s. 20.505 (10) (s) to the appropriation account under s. 20.370 (2) (bk).

SB177-SSA2, s. 3 Section 3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB177-SSA2, s. 4 Section 4. 20.370 (2) (bj) of the statutes is created to read:

SB177-SSA2,2,18 20.370 (2) (bj) Air management — small source mercury reduction. All moneys received under s. 285.50 (6) (a) 3. for conducting small source mercury reduction projects.

SB177-SSA2, s. 5 Section 5. 20.370 (2) (bk) of the statutes is created to read:

SB177-SSA2,3,5 20.370 (2) (bk) Air management — mercury control. The amounts in the schedule for mercury research under s. 285.11 (19) and for the mercury control program under s. 285.50. All moneys transferred to this appropriation account from the appropriation account under s. 20.505 (10) (s) shall be credited to this appropriation account.

SB177-SSA2, s. 6 Section 6. 20.505 (10) (s) of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

SB177-SSA2,3,13 20.505 (10) (s) Energy conservation and efficiency and renewable resource grants. From the utility public benefits fund, a sum sufficient for energy conservation and efficiency and renewable resource grants under s. 16.957 (2) (b) 1., to transfer the amounts in the schedule under s. 20.370 (2) (bk) to the appropriation account under s. 20.370 (2) (bk) and to make the transfer to the air quality improvement fund under s. 16.958 (2) (a).

SB177-SSA2, s. 7 Section 7. 285.11 (19) of the statutes is created to read:

SB177-SSA2,3,21 285.11 (19) Conduct, or contract with other persons to conduct, research on the effects of mercury emissions from sources in this state on the environment of this state and identify technologically and economically feasible control technologies that have been implemented successfully in reducing mercury emissions at comparable facilities in or out of this state. Once the department establishes the program under s. 285.50 (1e) (c), research under this subsection shall be consistent with and conducted under that program.

SB177-SSA2, s. 8 Section 8. Subchapter V (title) of chapter 285 [precedes 285.41] of the statutes is amended to read:

SB177-SSA2,3,24 CHAPTER 285

SB177-SSA2,4,5 SUBCHAPTER V SULFUR DIOXIDE AND NITROGEN OXIDE EMISSION RATES AND GOALS; MERCURY control

SB177-SSA2, s. 9 Section 9. 285.50 of the statutes is created to read:

SB177-SSA2,4,7 285.50 Mercury control. (1) Definitions. In this section:

SB177-SSA2,4,9 (a) "Allowance" means a limited authorization to emit one pound of mercury in one year.

SB177-SSA2,4,12 (b) "Baseline mercury emissions" means the average annual mercury emissions of a stationary source in 1997, 1998 and 1999, as determined under sub. (1m).

SB177-SSA2,4,13 (c) "Boiler" means a solid fossil fuel-fired combustion unit.

SB177-SSA2,4,14 (d) "Electric utility" has the meaning given in s. 196.485 (1) (bs).

SB177-SSA2,4,18 (dm) "Industrial boiler" means a boiler that is not owned by a municipality, this state or an electric utility if the total annual mercury emissions from all stationary sources that are located on the site on which the boiler is located exceed 10 pounds in any year.

SB177-SSA2,4,22 (e) "Modify" means to make one or more physical changes in, or changes in the method of operation of, a stationary source so that the annual mercury emissions of the stationary source increase by 5 pounds or more over the baseline mercury emissions of the stationary source.

SB177-SSA2,4,25 (f) "Nonboiler source" means a stationary source that emits mercury and that is not a solid fossil fuel-fired combustion unit. "Nonboiler source" includes a combustion unit that is fired with fossil fuel that is not solid.

SB177-SSA2,5,3 (h) "Regulated electric utility boiler" means a boiler that is owned by an electric utility if the total annual mercury emissions from all stationary sources that are located on the site on which the boiler is located exceed 10 pounds in any year.

SB177-SSA2,5,7 (i) "Regulated government-owned boiler" means a boiler that is owned by a municipality or this state if the total annual mercury emissions from all stationary sources that are located on the site on which the boiler is located exceed 10 pounds in any year.

SB177-SSA2,5,10 (j) "Regulated nonboiler source" means a nonboiler source if the total annual mercury emissions from all stationary sources that are located on the site on which the nonboiler source is located exceed 10 pounds in any year.

SB177-SSA2,5,12 (k) "Site" means contiguous property that is under common ownership or control.

SB177-SSA2,5,18 (1e) Mercury control report and program. (a) No later than July 1, 2001, the department shall submit to the legislature under s. 13.172 (2) and to the governor a mercury control report that summarizes the department's review of mercury emission sources in this state and methods for obtaining reductions in mercury emissions from these sources and describes a comprehensive program that will be administered by the department for addressing mercury in the environment.

SB177-SSA2,5,21 (b) In the review under par. (a) of mercury emission sources in this state and methods for obtaining reductions in mercury emissions from these sources, the department shall include at least descriptions of all of the following:

SB177-SSA2,5,22 1. Mercury emissions by sources in this state.

SB177-SSA2,6,2 2. Each method for obtaining reductions in mercury emissions for the sources identified under subd. 1., including an analysis of the method's effectiveness, technical feasibility, cost, impact on emissions of other pollutants, unintended environmental consequences and impact on the reliability of the supply of electricity in this state or on the delivery of other goods and services.

SB177-SSA2,6,4 (c) In its comprehensive program for addressing mercury in the environment, the department shall include all of the following components:

SB177-SSA2,6,6 1. Mercury-related research funded under s. 20.370 (2) (bk) and funded from other sources.

SB177-SSA2,6,7 2. Mercury deposition studies and monitoring activities.

SB177-SSA2,6,8 3. Public information and education.

SB177-SSA2,6,9 4. Technical assistance for stationary sources that emit mercury.

SB177-SSA2,6,11 5. Methods for reducing mercury emissions, including the requirements under sub. (2) and (3) and any goals under sub. (3m).

SB177-SSA2,6,12 6. Cooperative activities under sub. (10).

SB177-SSA2,6,14 7. Activities to eliminate the use of mercury by, or reduce mercury emissions from, small sources.

SB177-SSA2,6,16 8. Activities to address problems associated with long-term storage and disposal of mercury.

SB177-SSA2,6,18 9. Activities to evaluate the effectiveness of the program for addressing mercury in the environment.

SB177-SSA2,6,19 10. Any other components identified by the department.

SB177-SSA2,6,21 (d) In its report under par. (a), the department may recommend legislation to establish additional mercury emission limits.

SB177-SSA2,7,2 (e) The department shall submit updates to the report under par. (a) to the legislature under s. 13.172 (2) and to the governor no later than May 1, 2006, and May 1, 2011, and shall include in the updates an analysis of the impacts of banking and trading authorized under sub. (4) on water quality in specific locations and the actions that the department will take to address any adverse impacts of banking and trading on water quality in specific locations.

SB177-SSA2,7,9 (1m) Determination of mercury emissions. The department shall establish a methodology for determining the annual mercury emissions of boilers and other stationary sources that emit mercury. Using this methodology, the department shall determine a baseline mercury emission level for each regulated electric utility boiler, regulated government-owned boiler, regulated nonboiler source and industrial boiler by averaging the annual mercury emissions of the boiler or the nonboiler source in 1997, 1998 and 1999.

SB177-SSA2,7,15 (2) Emission limits; electric utility and government-owned boilers. (a) New and modified boilers. 1. After the department establishes a methodology under sub. (1m), no person may construct a new regulated electric utility boiler or a new regulated government-owned boiler until the person obtains mercury emission reductions, as provided in sub. (4), equal to 150% of the annual mercury emissions from the new boiler.

SB177-SSA2,7,20 2. After the department establishes a methodology under sub. (1m), no person may modify a regulated electric utility boiler or regulated government-owned boiler until the person obtains mercury emission reductions, as provided in sub. (4), equal to 150% of the increased mercury emissions resulting from the modification of the boiler.

SB177-SSA2,7,25 (b) Existing boilers. 1. Beginning in the year after the year in which the department establishes a methodology under sub. (1m), the annual mercury emissions from a regulated electric utility boiler or regulated government-owned boiler to which par. (a) does not apply may not exceed the baseline mercury emissions of the boiler, except as provided in sub. (4) (b).

SB177-SSA2,8,5 2. Except as provided under par. (c) 4. or sub. (3c), in 2005 to 2009, the owner or operator of a regulated electric utility boiler or regulated government-owned boiler to which par. (a) 1. does not apply shall annually obtain mercury emission reductions, as provided in sub. (4), equal to 25%, or the percentage established under par. (c) 1., of the baseline mercury emissions of the boiler.

SB177-SSA2,8,10 3. Except as provided under par. (c) 4. or sub. (3c), in 2010 to 2014, the owner or operator of a regulated electric utility boiler or regulated government-owned boiler to which par. (a) 1. does not apply shall annually obtain mercury emission reductions, as provided in sub. (4), equal to 50%, or the percentage established under par. (c) 2., of the baseline mercury emissions of the boiler.

SB177-SSA2,8,15 4. Except as provided under par. (c) 4. or sub. (3c), beginning in 2015, the owner or operator of a regulated electric utility boiler or regulated government-owned boiler to which par. (a) 1. does not apply shall annually obtain mercury emission reductions, as provided in sub. (4), equal to 60%, or the percentage established under par. (c) 3., of the baseline mercury emissions of the boiler.

SB177-SSA2,8,23 (c) Modifying emission limits. 1. The department may by rule reduce the requirement in par. (b) 2. from 25% to a percentage not less than 15% if the department determines, based on the report under sub. (1e) (a), that it is not technically and economically feasible to meet the 25% requirement in the period 2005 to 2009 using the methods for obtaining emission reductions authorized under sub. (4). If the department decides to promulgate a rule under this subdivision, it shall submit the rule in proposed form to the legislative council staff under s. 227.15 (1) no later than December 31, 2001.

SB177-SSA2,9,6 2. The department may by rule reduce the requirement in par. (b) 3. from 50% to a percentage not less than 35% if the department determines, based on the report under sub. (1e) (a) and any updates to the report, that it is not technically and economically feasible to meet the 50% requirement in the period 2010 to 2014 using the methods for obtaining emission reductions authorized under sub. (4). If the department decides to promulgate a rule under this subdivision, it shall submit the rule in proposed form to the legislative council staff under s. 227.15 (1) no later than December 31, 2006.

SB177-SSA2,9,12 3. The department may by rule increase the requirement in par. (b) 4. from 60% to a percentage not greater than 90% if the department determines, based on the report under sub. (1e) (a) and any updates to the report, that it is technically and economically feasible to meet the higher requirement using the methods for obtaining emission reductions authorized under sub. (4). A rule promulgated under this subdivision may not take effect fewer than 48 months after it is promulgated.

SB177-SSA2,9,19 4. The department shall modify the amount of emission reductions that a person is required to obtain under par. (b) 2. to 4. so that the person is not required to obtain any additional emission reductions for stationary sources on a site once the mercury emissions from all stationary sources on that site, less any mercury emission reductions obtained under sub. (4) from sources that are not on that site to satisfy the requirements under par. (b) 2. to 4. that apply to sources on that site, equals 10 pounds per year.

SB177-SSA2,9,24 (3) Emission limits; nonboiler sources. (a) New and modified nonboiler sources. 1. After the department establishes a methodology under sub. (1m), no person may construct a new regulated nonboiler source until the person obtains mercury emission reductions, as provided in sub. (4), equal to 150% of the annual mercury emissions from the new nonboiler source.

SB177-SSA2,10,4 2. After the department establishes a methodology under sub. (1m), no person may modify a regulated nonboiler source until the person obtains mercury emission reductions, as provided in sub. (4), equal to 150% of the increased mercury emissions resulting from the modification of the nonboiler source.

SB177-SSA2,10,9 (b) Existing nonboiler sources. 1. Beginning in the year after the year in which the department establishes a methodology under sub. (1m), the annual mercury emissions from a regulated nonboiler source to which par. (a) does not apply may not exceed the baseline mercury emissions of the nonboiler source, except as provided in sub. (4) (b).

SB177-SSA2,10,14 2. Except as provided under par. (c) 4. or sub. (3c), in 2005 to 2009, the owner or operator of a regulated nonboiler source to which par. (a) 1. does not apply shall annually obtain mercury emission reductions, as provided in sub. (4), equal to 25%, or the percentage established under par. (c) 1., of the baseline mercury emissions of the nonboiler source.

SB177-SSA2,10,19 3. Except as provided under par. (c) 4. or sub. (3c), in 2010 to 2014, the owner or operator of a regulated nonboiler source to which par. (a) 1. does not apply shall annually obtain mercury emission reductions, as provided in sub. (4), equal to 50%, or the percentage established under par. (c) 2., of the baseline mercury emissions of the nonboiler source.

SB177-SSA2,10,24 4. Except as provided under par. (c) 4. or sub. (3c), beginning in 2015, the owner or operator of a regulated nonboiler source to which par. (a) 1. does not apply shall annually obtain mercury emission reductions, as provided in sub. (4), equal to 60%, or the percentage established under par. (c) 3., of the baseline mercury emissions of the nonboiler source.

SB177-SSA2,11,8 (c) Modifying emission limits. 1. The department may by rule reduce the requirement in par. (b) 2. from 25% to a percentage not less than 15% if the department determines, based on the report under sub. (1e) (a), that it is not technically and economically feasible to meet the 25% requirement in the period 2005 to 2009 using the methods for obtaining emission reductions authorized under sub. (4). If the department decides to promulgate a rule under this subdivision, it shall submit the rule in proposed form to the legislative council staff under s. 227.15 (1) no later than December 31, 2001.

SB177-SSA2,11,16 2. The department may by rule reduce the requirement in par. (b) 3. from 50% to a percentage not less than 35% if the department determines, based on the report under sub. (1e) (a) and any updates to the report, that it is not technically and economically feasible to meet the 50% requirement in the period 2010 to 2014 using the methods for obtaining emission reductions authorized under sub. (4). If the department decides to promulgate a rule under this subdivision, it shall submit the rule in proposed form to the legislative council staff under s. 227.15 (1) no later than December 31, 2006.

SB177-SSA2,11,22 3. The department may by rule increase the requirement in par. (b) 4. from 60% to a percentage not greater than 90% if the department determines, based on the report under sub. (1e) (a) and any updates to the report, that it is technically and economically feasible to meet the higher requirement using the methods for obtaining emission reductions authorized under sub. (4). A rule promulgated under this subdivision may not take effect fewer than 48 months after it is promulgated.

SB177-SSA2,12,4 4. The department shall modify the amount of emission reductions that a person is required to obtain under par. (b) 2. to 4. so that the person is not required to obtain any additional emission reductions for stationary sources on a site once the mercury emissions from all stationary sources on that site, less any mercury emission reductions obtained under sub. (4) from sources that are not on that site to satisfy the requirements under par. (b) 2. to 4. that apply to sources on that site, equals 10 pounds per year.

SB177-SSA2,12,9 (3c) Variance. If the department determines that compliance with a requirement under sub. (2) (b) 2. to 4. or (3) (b) 2. to 4. would cause undue or unreasonable hardship to any person, the department may issue a variance for up to 2 years from part or all of the requirement as long as a variance will not result in undue harm to human health or the environment.

SB177-SSA2,12,17 (3e) Increase in required reductions. Notwithstanding the mercury emission reductions required to be obtained under subs. (2) (b) 2. to 4. and (3) (b) 2. to 4., if the owner or operator of a stationary source subject to those requirements fails to obtain the required mercury emission reductions in a year, the department shall increase the amount of mercury emission reductions that the owner or operator must obtain under sub. (2) (b) or (3) (b) for the next year by 5 times the difference between the amount of emission reductions required and the amount of emission reductions obtained unless the owner or operator obtains a variance under sub. (3c).

SB177-SSA2,12,22 (3m) Study of emission reduction feasibility and goals; industrial boilers. (a) The department shall, in cooperation with owners of industrial boilers, study mercury emission reduction options that are technologically and economically feasible and that have been successfully employed for the purposes of mercury reduction for similarly situated industrial boilers.

SB177-SSA2,13,2 (b) For each mercury reduction option that is determined to be technologically and economically feasible under par. (a), the department shall estimate the potential environmental benefit to fish and aquatic resources in this state from implementation of the option.

SB177-SSA2,13,7 (c) If technologically and economically feasible mercury reduction options are available for industrial boilers that would result in significant environmental benefits to fish and aquatic resources in this state, the department shall, in cooperation with owners and operators, establish mercury emission reduction goals and timetables for industrial boilers.

SB177-SSA2,13,10 (4) Compliance. (a) A person who owns a stationary source that is subject to sub. (2) (a) or (3) (a) may obtain the required emission reductions by one or more of the following methods:

SB177-SSA2,13,13 1. Reducing the annual mercury emissions from another stationary source owned by the person if the reduction is permanent and enforceable and is not otherwise required by this section or other state or federal law.

SB177-SSA2,13,17 2. Entering into an agreement under which another person reduces the annual mercury emissions from a stationary source owned by the other person if the reduction is permanent and enforceable and is not otherwise required by this section or other state or federal law.

SB177-SSA2,13,23 (b) A person who owns a stationary source that is subject to sub. (2) (b) 1. or (3) (b) 1. may only increase the annual mercury emissions in a year above the baseline mercury emissions for that stationary source if the person reduces mercury emissions in that year from another stationary source on the same site by the amount of the increase and if the emission reduction is not otherwise required by this section or other state or federal law.

SB177-SSA2,14,3 (c) Except as provided in par. (d) or (e), a person who owns a stationary source that is subject to sub. (2) (b) 2. to 4. or (3) (b) 2. to 4. may obtain the required emission reductions by one or more of the following methods:

SB177-SSA2,14,5 1. Reducing mercury emissions from that stationary source or another stationary source on the same site.

SB177-SSA2,14,6 2. Using banked or traded allowances as provided under sub. (5).

SB177-SSA2,14,7 3. Using small source mercury reduction allowances as provided under sub. (6).

SB177-SSA2,14,12 (d) 1. A person who owns or operates a stationary source that is regulated under sub. (2) (b) 2. to 4. may not obtain more than 50% of the required emission reductions for that stationary source by using allowances from a stationary source that is regulated under sub. (3), by using small source mercury reduction allowances or by using a combination of those methods.