Amendment ASA1-AB649

AB649-ASA1,67,11 196.374 (7) (cm) Cost recovery. The commission shall ensure in rate-making orders that a municipal utility recovers from its ratepayers the amounts the municipal utility spends to comply with this section.

AB649-ASA1, s. 148 Section 148. 196.374 (7) (d) of the statutes is repealed.

AB649-ASA1, s. 149 Section 149. 196.374 (7) (dm) of the statutes is created to read:

AB649-ASA1,67,17 196.374 (7) (dm) Annual statements. Annually, a municipal utility or retail electric cooperative shall prepare a statement that describes the municipal utility's or retail electric cooperative's commitment to community programs and provide customers or members with a copy of the statement.

AB649-ASA1, s. 150 Section 150. 196.374 (7) (e) (title) of the statutes is repealed and recreated to read:

AB649-ASA1,67,20 196.374 (7) (e) (title) Audits and reports.

AB649-ASA1, s. 151 Section 151. 196.374 (7) (e) 1. (intro.) of the statutes is amended to read:

AB649-ASA1,68,2 196.374 (7) (e) 1. (intro.) Annually, each municipal utility and retail electric cooperative that spends the fee that it charges under par. (a) for commitment to community programs under par. (b) shall provide for an independent financial and program audit of its the commitment to community programs that it administers or for which it contracts under par. (am) and submit a report to the commission that describes all of the following:

AB649-ASA1, s. 152 Section 152. 196.374 (7) (e) 1. a. of the statutes is amended to read:

AB649-ASA1,68,9 196.374 (7) (e) 1. a. An accounting of any fees charged to customers or members under par. (a) in the year in order to comply with the spending required under par. (am) and an accounting of the expenditures in the year on commitment to community programs under par. (b), including any amounts included in the municipal utility's or retail electric cooperative's calculations under par. (c) that the municipal utility or retail electric cooperative administers or for which it contracts under par. (am).

AB649-ASA1, s. 153 Section 153. 196.374 (7) (e) 1. b. of the statutes is amended to read:

AB649-ASA1,68,13 196.374 (7) (e) 1. b. A description of the commitment to community programs established by the municipal utility or retail electric cooperative in the year described in subd. 1. a.

AB649-ASA1, s. 154 Section 154. 196.374 (7) (e) 1. c. of the statutes is amended to read:

AB649-ASA1,68,17 196.374 (7) (e) 1. c. The effectiveness of the commitment to community programs described in subd. 1. a. in reducing demand for electricity by customers or members regulated fuels.

AB649-ASA1, s. 155 Section 155. 196.374 (7) (e) 1. e. of the statutes is created to read:

AB649-ASA1,68,21 196.374 (7) (e) 1. e. An assessment, based on the program audit, of whether the commitment to community programs described in subd. 1. a. have met the goal for each regulated fuel for the year determined under sub. (3) (bn) 1. f.

AB649-ASA1, s. 156 Section 156. 196.374 (8) of the statutes is renumbered 196.374 (8) (d) and amended to read:

AB649-ASA1,69,5 196.374 (8) (d) Exceptions. An energy utility that spends pays to a statewide programs contractor the full amount required under sub. (3) (b) 2. (bw) 3. or 3g. in any year is considered to have satisfied its requirements under this section for that year. A municipal utility or retail electric cooperative that contracts with a statewide programs contractor under sub. (7) (am) 2. to achieve each of the utility's or cooperative's goals determined under sub. (3) (bn) 1. f. for a year is considered to have satisfied its requirements under this section for that year.

AB649-ASA1, s. 157 Section 157. 196.374 (8) (a), (b) and (c) of the statutes are created to read:

AB649-ASA1,69,15 196.374 (8) (a) Determinations. 1. a. For each quadrennium following the proceeding under sub. (3) (bc), the commission shall determine the annual average reduction in demand for and use of each target fuel that is achieved under the statewide programs and achieved by or on behalf of each municipal utility and retail electric cooperative through commitment to community programs. Except as provided in subd. 1. b. and c., if the annual average reduction for a target fuel equals or exceeds the average of the goals determined under sub. (3) (bn) 1. e. or f. or 2. c. for the quadrennium, the commission shall conclude that the goal is achieved for the quadrennium.

AB649-ASA1,69,21 b. If a municipal utility or retail electric cooperative enters into a contract under sub. (7) (am) 3. with a wholesale supplier and at least one other municipal utility or retail electric cooperative enters into a similar contract with the wholesale supplier, the commission shall determine whether to conclude that a goal is achieved for a regulated fuel for a year under subd. 1. a. based on the aggregate annual average reduction that results for that regulated fuel for that year under all of the contracts.

AB649-ASA1,70,2 c. If a wholesale supplier accepts assignment of a goal under sub. (7) (bg) for a regulated fuel for a year from more than one municipal utility or retail electric cooperative, the commission shall determine whether to conclude that the goal is achieved on an aggregate basis for all the municipal utilities and retail electric cooperatives for which the wholesale supplier has accepted the assignment, rather than on an individual basis for each municipal utility or retail electric cooperative.

AB649-ASA1,70,7 2. For each utility-administered, supplemental utility, and large energy customer program, the commission shall determine whether the program achieved the goals approved for the program under sub. (3) (c) 2. on average over the time period in which the program is in effect or another time period specified by the commission.

AB649-ASA1,70,11 (b) Reviews. 1. If the commission determines under par. (a) that a goal is not achieved, the commission shall investigate, as applicable, the statewide programs or the utility-administered, large energy customer, or commitment to community programs at issue, and determine the reasons for failure to achieve the goal.

AB649-ASA1,70,18 2. If the commission determines under subd. 1. that a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program made a good faith effort to meet the goal and that the failure is due to factors outside the statewide program contractor's or person's control, the commission shall take those factors into account in modifying goals for and, where applicable, approving future programs administered by the statewide programs contractor or person.

AB649-ASA1,71,3 3. If the commission determines under subd. 1. that a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program did not make a good faith effort to achieve the goal or that the failure to achieve the goal was due to factors within the statewide program contractor's or person's control, the commission shall implement remedies according to the rules promulgated under par. (c). The commission may determine that a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program did not make a good faith effort to meet a goal only if the commission finds any of the following:

AB649-ASA1,71,5 a. The statewide programs contractor or person has repeatedly or grossly failed to meet a goal.

AB649-ASA1,71,9 b. For a commitment to community program, the municipal utility, retail electric cooperative, or wholesale supplier administering or contracting for the program did not determine an amount of funds under sub. (3) (br) 2. or (7) (bg) 1. that could reasonably be considered necessary to achieve the goal.

AB649-ASA1,71,10 c. Any other condition specified by the commission by rule.

AB649-ASA1,71,17 (c) Remedies. The commission shall promulgate rules specifying remedies to implement under par. (b) 3. that are in proportion to the magnitude of the failure to achieve a goal and the degree to which a statewide programs contractor or person administering the utility-administered, large energy customer, or commitment to community program did not make a good faith effort or did not control the factors that resulted in the failure to achieve the goal. The rules shall include all of the following remedies:

AB649-ASA1,71,21 1. An order that a statewide programs contractor or person take corrective actions, which may include achieving the goal in a year or other time period specified by the commission, in addition to achieving any other goal under this section that applies to that year or time period.

AB649-ASA1,71,22 2. For a goal under the statewide programs:

AB649-ASA1,71,25 a. An order that the energy utilities invoke any provisions of a contract under sub. (2) (a) 1., or that a statewide programs contractor invoke any provisions of a subcontract, that impose monetary penalties for failure to achieve a goal.

AB649-ASA1,72,3 b. An order that the energy utilities modify or terminate the contract with a statewide programs contractor under sub. (2) (a) 1. or an order that a statewide programs contractor modify or terminate any subcontract.

AB649-ASA1,72,5 3. For a goal under a utility-administered or large energy customer program, an order modifying or terminating the program.

AB649-ASA1,72,14 4. For a goal of a municipal utility or retail electric cooperative, an order requiring the municipal utility or retail electric cooperative to modify or terminate a contract with or assignment to a wholesale supplier under sub. (7) (am) 3. or (bg), or enter into a contract with a statewide programs contractor under sub. (7) (am) 2., or an order requiring both. The commission may rescind an order requiring a municipal utility or retail electric cooperative to enter into a contract with a statewide programs contractor if the municipal utility or retail electric cooperative provides reasonable assurance that it will provide programs and set budgets reasonably designed to achieve the goal in the future.

AB649-ASA1,72,15 5. Any other remedy specified by the commission.

AB649-ASA1, s. 158 Section 158. 196.374 (9) and (10) of the statutes are created to read:

AB649-ASA1,72,23 196.374 (9) Treatment of certain capital investments. (a) The commission may allow an energy utility to earn a return on capital invested by the energy utility under a utility-administered or supplemental utility program for energy conservation or efficiency equipment that is located on customer premises, including equipment owned by either the energy utility or a customer. The commission may make such an allowance only if the commission determines that the investment is prudent and a cost-effective means of advancing energy conservation or efficiency.

AB649-ASA1,73,3 (b) The commission shall promulgate rules to implement this subsection, including rules specifying the energy conservation or efficiency equipment that qualifies for treatment under par. (a).

AB649-ASA1,73,10 (10) Coordination with federal law. The commission shall minimize reporting and other compliance requirements on energy providers to the maximum extent allowed under this section for the purpose of coordination with any similar requirements under federal law. If the commission determines that statutory changes to this section are necessary to comply with this subsection, the commission shall submit a report recommending the statutory changes to the legislature in the manner described under s. 13.172 (3).

AB649-ASA1, s. 159 Section 159. 196.377 (title) of the statutes is repealed.

AB649-ASA1, s. 160 Section 160. 196.377 (1) of the statutes is renumbered 196.377.

AB649-ASA1, s. 161 Section 161. 196.377 (2) of the statutes is repealed.

AB649-ASA1, s. 162 Section 162. 196.378 (1) (intro.) and (ag) of the statutes are renumbered 196.378 (1r) (intro.) and (ag), and 196.378 (1r) (ag), as renumbered, is amended to read:

AB649-ASA1,73,18 196.378 (1r) (ag) "Baseline renewable percentage" means the average of an energy electric provider's renewable energy percentage for 2001, 2002, and 2003.

AB649-ASA1, s. 163 Section 163. 196.378 (1) (am) of the statutes is repealed.

AB649-ASA1, s. 164 Section 164. 196.378 (1) (ar) of the statutes is renumbered 196.378 (1r) (ar) and amended to read:

AB649-ASA1,74,2 196.378 (1r) (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 before January 1, 1998 has the meaning given in s. 196.374 (1) (am).

AB649-ASA1, s. 165 Section 165. 196.378 (1) (b) of the statutes is repealed.

AB649-ASA1, s. 166 Section 166. 196.378 (1) (c) and (d) of the statutes are renumbered 196.378 (1r) (c) and (d).

AB649-ASA1, s. 167 Section 167. 196.378 (1) (fg) of the statutes is renumbered 196.378 (1r) (fg) (intro.) and amended to read:

AB649-ASA1,74,9 196.378 (1r) (fg) (intro.) "Renewable energy" means electricity derived from a any of the following:

AB649-ASA1,74,14 1. A renewable resource. If the electricity is derived from the combustion of a renewable resource fuel and another fuel, the "renewable energy" calculated under this subdivision is the total amount of electricity that is derived multiplied by a ratio, of which the numerator is the energy content of the renewable resource fuel and the denominator is the energy content of the renewable resource fuel and the other fuel.

AB649-ASA1, s. 168 Section 168. 196.378 (1) (fm) (intro.) of the statutes is renumbered 196.378 (1r) (fm) (intro.).

AB649-ASA1, s. 169 Section 169. 196.378 (1) (fm) 1. of the statutes is renumbered 196.378 (1r) (fm) 1. and amended to read:

AB649-ASA1,74,20 196.378 (1r) (fm) 1. The electric provider's total renewable energy in that year that is allowed under the rules promulgated under sub. (3) (a) 5.

AB649-ASA1, s. 170 Section 170. 196.378 (1) (fm) 2. of the statutes is renumbered 196.378 (1r) (fm) 2. and amended to read:

AB649-ASA1,74,25 196.378 (1r) (fm) 2. The renewable resource portfolio credits created or purchased by the electric provider, if any, that the electric provider elects to use in that year.

AB649-ASA1, s. 171 Section 171. 196.378 (1) (fr) of the statutes is repealed.

AB649-ASA1, s. 172 Section 172. 196.378 (1) (g) of the statutes is renumbered 196.378 (1r) (g).

AB649-ASA1, s. 173 Section 173. 196.378 (1) (h) (intro.) of the statutes is renumbered 196.378 (1r) (h) and amended to read:

AB649-ASA1,75,6 196.378 (1r) (h) "Renewable resource" means any of the following: has the meaning given in s. 196.374 (1) (j).

AB649-ASA1, s. 174 Section 174. 196.378 (1) (h) 1., 1m. and 2. of the statutes are repealed.

AB649-ASA1, s. 175 Section 175. 196.378 (1) (i) of the statutes is renumbered 196.378 (1r) (i) and amended to read:

AB649-ASA1,75,12 196.378 (1r) (i) "Renewable resource credit" means a renewable resource credit, as defined in s. 196.378 (1) (i), 2007 stats., or a renewable resource credit calculated in accordance with rules promulgated created under sub. (3) (a) 1. and 2.

AB649-ASA1, s. 176 Section 176. 196.378 (1) (j) of the statutes is repealed.

AB649-ASA1, s. 177 Section 177. 196.378 (1) (k) of the statutes is renumbered 196.378 (1r) (k).

AB649-ASA1, s. 178 Section 178. 196.378 (1) (o) of the statutes is repealed.

AB649-ASA1, s. 179 Section 179. 196.378 (1) (p) of the statutes is renumbered 196.378 (1r) (p).

AB649-ASA1, s. 180 Section 180. 196.378 (1g) of the statutes is created to read:

AB649-ASA1,75,18 196.378 (1g) Legislative findings. The legislature finds all of the following:

AB649-ASA1,75,23 (a) It is essential to the health and safety and economic well-being of Wisconsin that the state maintain a highly reliable electric system at all times that includes a diverse mix of resources both in terms of type and geographic location. Geographic diversity is particularly important for intermittent resources like wind power.

AB649-ASA1,76,3 (b) It is essential to the health and safety and economic well-being of Wisconsin that the state take actions to mitigate global climate change from emissions of greenhouse gasses. Central to such mitigation efforts is reducing reliance on electricity produced from fossil fuels through policies such as the renewable portfolio standard.

AB649-ASA1,76,10 (c) As of the effective date of this paragraph .... [LRB inserts date], the most abundant and affordable sources of electricity that can be used to comply with the renewable portfolio standard are wind resources in western Minnesota, the Dakotas, and Iowa. Exclusive reliance on these resources for compliance with the renewable portfolio standard will produce a significant increase in dependence on imported electricity with the associated congestion cost risks and not provide needed diversity for the state's renewable resource portfolio.

AB649-ASA1,76,17 (d) To balance the competing imperatives of developing a renewable generation portfolio that is diverse as to geographic location and type of renewable resources in the portfolio, including smaller scale distributed resources, mitigating high transmission congestion cost risk, and reducing dependence on electricity produced from fossil fuels, it is essential that Wisconsin adopt a renewable portfolio standard that requires a part of the production of electricity from renewable resources in this state.

AB649-ASA1, s. 181 Section 181. 196.378 (1r) (at) of the statutes is created to read:

AB649-ASA1,76,20 196.378 (1r) (at) "Conservation certificate" means a certificate created under the rules promulgated under sub. (3m) (b).

AB649-ASA1, s. 182 Section 182. 196.378 (1r) (de) of the statutes is created to read:

AB649-ASA1,77,2 196.378 (1r) (de) "In-state percentage" means, with respect to an electric provider, the portion of the electric provider's renewable energy percentage that is derived from electricity generated by renewable facilities located in this state, renewable resource credits separated from such electricity, and nonelectric energy credits.

AB649-ASA1, s. 183 Section 183. 196.378 (1r) (dm) of the statutes is created to read:

AB649-ASA1,77,7 196.378 (1r) (dm) "Nonelectric energy" means any of the following types of energy or fuel produced or generated at a facility located in this state and placed in service on or after the effective date of this paragraph .... [LRB inserts date], but only if the energy or fuel displaces fossil fuel use in this state:

AB649-ASA1,77,15 1. The thermal output from a cogeneration production plant, as defined in s. 79.005 (1g). If the cogeneration production plant is fueled with a mixture of renewable resource fuel, synthetic fuel, or pelletized waste, and other fuel, the thermal output under this subdivision shall be the total thermal output of the cogeneration production plant multiplied by a ratio, of which the numerator is the energy content of the renewable resource fuel, synthetic fuel, or pelletized waste and the denominator is the energy content of the renewable resource fuel, synthetic fuel, or pelletized waste, and the other fuel.

AB649-ASA1,77,21 2. The thermal output from a renewable resource-fueled or synthetic fuel-fueled boiler. If the boiler is fueled with a mixture of a renewable resource or synthetic fuel, and other fuel, the thermal output under this subdivision shall be the total thermal output of the boiler multiplied by a ratio, of which the numerator is the energy content of the renewable resource or synthetic fuel and the denominator is the energy content of the renewable resource or synthetic fuel, and the other fuel.

AB649-ASA1,77,22 3. The thermal output of a geothermal system.

AB649-ASA1,77,23 4. Biogas that is put into a natural gas transmission or distribution pipeline.

AB649-ASA1,77,24 5. The thermal output of a solar water heating system.

AB649-ASA1,77,25 6. Useable light delivered by a solar light pipe.

AB649-ASA1,78,2 7. Energy derived from other applications, specified by the commission by rule, that produce energy other than electricity from renewable resources.