Analysis by the Legislative Reference Bureau
Current law imposes certain requirements if the department of natural
resources (DNR) issues a state implementation plan for the control of atmospheric
ozone in another state pursuant to a call by the federal environmental protection
agency (EPA) under the federal Clean Air Act. The requirements apply if EPA made
the call before October 29, 1999, or if EPA makes a call after that date that arises out
of a call EPA made before that date. In addition, for the requirements to apply, the
state implementation plan must require electric generating facilities in a certain
area of the state to comply with nitrogen oxide emission reduction requirements. The
area of the state is the northwestern portion of the state that is served by the
Mid-Continent Area Power Pool (MAPP), which is a reliability council established
under federal law. If DNR issues such a state implementation plan, the department
of administration (DOA) is required to make grants to assist electric providers in
complying with the nitrogen oxide emission reduction requirements. The funding

source for the grants consists of assessments paid by electric public utility affiliates
in certain public utility holding company systems.
This bill specifies that the electric public utility affiliates that must pay the
assessments are those electric public utility affiliates that own electric generating
facilities in the area outside the northwestern portion of the state served by MAPP.
Current law also imposes certain restrictions on the nitrogen oxide emissions
standards or limitations that DNR may establish if DNR issues the state
implementation plan described above. In addition, if DNR issues that state
implementation plan, current law prohibits DNR from requiring, on the basis of
these restrictions, reductions of nitrogen oxide emissions from mobile sources and
certain stationary sources that are in addition to the reductions required in the state
implementation plan. The stationary sources to which this prohibition applies are
stationary sources that are not electric generating facilities owned by public utilities
or electric cooperatives.
The bill replaces the prohibition that applies if DNR issues the state
implementation plan described above. Under the bill, if DNR issues that state
implementation plan, DNR may not, with respect to any nonutility stationary or
mobile source, do any of the following: 1) require reductions in nitrogen oxide
emissions for boilers, turbines or internal combustion engines with a designed heat
input of 250 million British thermal units per hour or less; 2) require reductions of
nitrogen oxide emissions that are in addition to reductions required by or projected
for nonutility stationary or mobile sources based on nitrogen oxide inventory and
subinventory data used by EPA in determining the total amount of allowable
nitrogen oxide emissions in the state under the federal Clean Air Act; or 3) require
any additional reductions of nitrogen oxide emissions from nonutility stationary or
mobile sources due to the foregoing prohibitions or the restrictions under current law
on DNR's establishment of nitrogen oxide emissions standards or limitations. The
bill defines a "nonutility stationary or mobile source" as a stationary or mobile source
that is not an electric generating facility owned by a public utility or electric
cooperative.
Current law also requires DNR to take certain actions if DNR implements a
state implementation plan described above in a manner that requires reductions in
nitrogen oxide emissions that are lower than certain reductions specified by EPA in
calling for the state implementation plan. In addition to the actions required under
current law, the bill requires DNR to determine the amounts by which reduction
requirements for any nonutility stationary or mobile source are to be relaxed to
reflect the lower reductions.
The bill also makes changes to requirements under current law for the creation
of a transmission company that plans, constructs, operates, maintains and expands
electric transmission facilities and takes other measures to provide for an adequate
and reliable electric transmission system. Under current law, the transmission
company is required to apply, no later than November 1, 2000, for any state or federal
approvals that are necessary for the transmission company to begin operations. This
bill changes the application deadline to January 1, 2001.

Also under current law, certain limits apply to the amount of nonutility assets
that may be held in a public utility holding company system. There is an exception
to these limits if each public utility affiliate in such a holding company system takes
certain actions, including filing with the public service commission (PSC) a
commitment to contribute all of its transmission facilities and certain land rights to
the transmission company. Certain other electric utilities and cooperatives are also
allowed to transfer certain of their transmission facilities to the transmission
company or purchase equity interests in the transmission company, but must do so
no later than one year after the first public utility affiliate files a commitment with
the PSC. This bill changes this deadline to January 1, 2001.
Finally, the bill increases the appropriation for intervenors in proceedings
before the PSC by $250,000 in fiscal year 1999-00 and in fiscal year 2000-01.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB481, s. 1 1Section 1. 196.485 (3m) (a) 1. a. of the statutes, as created by 1999 Wisconsin
2Act 9
, is amended to read:
SB481,3,53 196.485 (3m) (a) 1. a. Apply for any approval under state or federal law that
4is necessary for the transmission company to begin operations no later than
5November 1, 2000 January 1, 2001.
SB481, s. 2 6Section 2. 196.485 (5) (a) 2. of the statutes, as created by 1999 Wisconsin Act
79
, is amended to read:
SB481,3,148 196.485 (5) (a) 2. Files with the commission an unconditional, irrevocable and
9binding commitment to contribute, no later than September 30, 2000 January 1,
102001
, all of the transmission facilities that the public utility affiliate owns or operates
11in this state on October 29, 1999, and land rights, to the transmission company. A
12filing under this subdivision shall specify a date no later than September 30, 2000
13January 1, 2001, on which the public utility affiliate will complete the contribution
14of transmission facilities.
SB481, s. 3
1Section 3. 196.485 (6) (a) (intro.) of the statutes, as created by 1999 Wisconsin
2Act 9
, is amended to read:
SB481,4,53 196.485 (6) (a) (intro.) No later than the first day of the 12th month beginning
4after the first public utility affiliate files a commitment under sub. (5) (a) 2.
January
51, 2001
:
SB481, s. 4 6Section 4. 196.86 (1) (b) of the statutes, as created by 1999 Wisconsin Act 9,
7is amended to read:
SB481,4,108 196.86 (1) (b) "Electric public utility affiliate" means a public utility affiliate,
9as defined in s. 196.795 (1) (L), that sells electricity in this state and owns electric
10generating facilities in the transmission area
.
SB481, s. 5 11Section 5. 196.86 (1) (f) of the statutes is created to read:
SB481,4,1212 196.86 (1) (f) "Transmission area" has the meaning given in s. 196.485 (1) (g).
SB481, s. 6 13Section 6. 285.48 (1) (cm) of the statutes is created to read:
SB481,4,1614 285.48 (1) (cm) "Nonutility stationary or mobile source" means a stationary or
15mobile source that is not an electric generating facility owned by a public utility or
16electric cooperative.
SB481, s. 7 17Section 7. 285.48 (3) (c) of the statutes, as created by 1999 Wisconsin Act 9,
18is repealed and recreated to read:
SB481,4,2419 285.48 (3) (c) In establishing nitrogen oxide emission reduction requirements
20for the control of atmospheric ozone in another state pursuant to a call, the
21department may not, with respect to any nonutility stationary or mobile source in
22this state, in a state implementation plan, by rule or through the adoption of control
23strategies, establish nitrogen oxide emissions standards or limitations that do any
24of the following:
SB481,5,3
11. Require any reductions in nitrogen oxide emissions for any boiler, turbine
2or internal combustion engine the designed heat input of which is 250 million British
3thermal units per hour or less.
SB481,5,84 2. Require reductions of nitrogen oxide emissions that are in addition to those
5reductions required by or projected for nonutility stationary or mobile sources based
6on source-specific nitrogen oxide inventory data or other subinventory information
7used by the federal environmental protection agency to establish state nitrogen oxide
8emission budgets concerning interstate pollution transport.
SB481,5,119 3. Require any additional reductions of nitrogen oxide emissions from
10nonutility stationary or mobile sources in this state due to this section, including the
11reduction requirements under par. (a).
SB481, s. 8 12Section 8. 285.48 (3) (d) 2m. of the statutes is created to read:
SB481,5,1513 285.48 (3) (d) 2m. Determine the amounts by which reduction requirements for
14any nonutility stationary or mobile source in this state shall be relaxed to reflect the
15lower reductions.
SB481, s. 9 16Section 9. Appropriation changes.
SB481,5,2117 (1) Intervenor financing. In the schedule under section 20.005 (3) of the
18statutes for the appropriation to the public service commission under section 20.155
19(1) (j) of the statutes, as affected by the acts of 1999, the dollar amount is increased
20by $250,000 for fiscal year 1999-00 and the dollar amount is increased by $250,000
21for fiscal year 2000-01 for the purpose for which the appropriation is made.
SB481,5,2222 (End)
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