SB459-engrossed, s. 88 20Section 88. 196.378 (2) (b) 5. of the statutes is created to read:
SB459-engrossed,41,2521 196.378 (2) (b) 5. An electric provider that purchases renewable energy from
22a renewable energy supplier may use an allocated share of the renewable energy sold
23by the renewable energy supplier to comply with a requirement under par. (a) 2. or
24to create a credit under sub. (3) (a), provided that the cost of the renewable energy
25is included in the price the electric provider paid the renewable energy supplier.
SB459-engrossed, s. 89
1Section 89. 196.378 (2) (c) of the statutes is amended to read:
SB459-engrossed,42,162 196.378 (2) (c) No later than April 15 annually, or another annual date specified
3by the commission by rule,
an electric provider shall submit a report to the
4department commission that identifies the electric provider's renewable energy
5percentage for the previous year and
describes the electric provider's compliance
6with par. (a) 2. and the electric provider's implementation plans for future
7compliance
. Reports under this paragraph may include certifications from
8wholesale suppliers renewable energy suppliers regarding the sources and amounts
9of renewable energy supplied to an the electric provider. The department
10commission may specify the documentation that is required to be included with
11reports submitted under this paragraph. The commission may require that electric
12providers submit the reports in a proceeding, initiated by the commission under this
13section relating to the implementation of s. 1.12, or in a proceeding for preparing a
14strategic energy assessment under s. 196.491 (2). No later than 90 days after the
15commission's receipt of an electric provider's report, the commission shall inform the
16electric provider whether the electric provider is in compliance with par. (a) 2.
SB459-engrossed, s. 90 17Section 90. 196.378 (2) (e) of the statutes is repealed and recreated to read:
SB459-engrossed,42,2418 196.378 (2) (e) An electric provider, or a wholesale supplier for its members,
19may request that the commission grant a delay for complying with a deadline
20specified in par. (a) 2. The commission shall hold a hearing on the request and, if
21requested by the electric provider or wholesale supplier, treat the matter as a
22contested case. The commission shall grant a delay if the commission determines
23that the applicant has demonstrated good faith efforts to comply with the deadline
24and that any of the following applies:
SB459-engrossed,43,3
11. Notwithstanding reasonable efforts to protect against undesirable impacts
2on the reliability of an electric provider's system, compliance with the deadline will
3have an undesirable impact on the reliability of the applicant's system.
SB459-engrossed,43,94 2. Notwithstanding reasonable efforts to protect against unreasonable
5increases in rates of the applicant's ratepayers or members, compliance with the
6deadline will result in unreasonable increases in rates of the applicant's ratepayers
7or members, including increases that are due to the discontinuation of federal
8renewable energy tax credits or other federal policies intended to reduce the
9acquisition costs of renewable energy.
SB459-engrossed,43,1310 3. Notwithstanding reasonable efforts to obtain required approvals, the
11applicant cannot comply with the deadline because the applicant or a supplier has
12experienced or will experience delays in receiving required siting or permitting
13approvals for renewable energy projects.
SB459-engrossed,43,1714 4. Notwithstanding reasonable efforts to secure transmission service, the
15applicant cannot comply with the deadline because the applicant faces transmission
16constraints that interfere with the economic and reliable delivery of renewable
17energy to the applicant's system.
SB459-engrossed, s. 91 18Section 91. 196.378 (2) (f) of the statutes is created to read:
SB459-engrossed,44,219 196.378 (2) (f) A wholesale electric cooperative for its members or a municipal
20electric company for its members may delay compliance with a deadline specified in
21par. (a) 2. for any reason specified in par. (e) 1. to 4. A wholesale electric cooperative
22or a municipal electric company that delays compliance with a deadline specified in
23par. (a) 2. shall inform the commission of the delay and the reason for the delay, and
24shall submit information to the commission demonstrating that, notwithstanding

1good faith efforts by the wholesale electric cooperative or municipal electric company
2and its members, the members cannot meet the deadline for the stated reason.
SB459-engrossed, s. 92 3Section 92. 196.378 (2) (g) of the statutes is created to read:
SB459-engrossed,44,64 196.378 (2) (g) 1. In this paragraph, "energy consumer advocacy group" means
5a group or organization that advocates on behalf of its members' interests regarding
6the cost, availability, and reliability of energy or regarding utility regulation.
SB459-engrossed,44,137 2. An energy consumer advocacy group may request that the commission grant
8to an electric provider that serves one or more members of the group a delay for
9complying with a deadline specified in par. (a) 2. The commission shall hold a
10hearing on the request and, if requested by the energy consumer advocacy group,
11treat the matter as a contested case. The commission shall grant a delay if the
12commission determines that the utility has demonstrated good faith efforts to
13comply with the deadline and that any of the conditions in par. (e) 1. to 4. apply.
SB459-engrossed, s. 93 14Section 93. 196.378 (3) (a) of the statutes is renumbered 196.378 (3) (a) 1. and
15amended to read:
SB459-engrossed,45,416 196.378 (3) (a) 1. An Subject to subd. 2., an electric provider that provides total
17renewable energy to its retail electric customers or members in excess of the
18percentages specified in sub. (2) (a) 1. to 6. 2. may, in the applicable year, create a
19renewable resource credit and
sell to any other electric provider a the renewable
20resource credit or a portion of a the renewable resource credit at any negotiated
21price. Alternatively, an An electric provider that creates or purchases a renewable
22resource credit or portion
may use a renewable resource the credit or portion of a
23renewable resource credit
in a subsequent year, as provided under par. (c), to
24establish compliance with sub. (2) (a) 2. The commission shall promulgate rules that
25establish requirements for the creation and use of a renewable resource credit

1created on or after January 1, 2004, including calculating the amount of a renewable
2resource credit, and for the tracking of renewable resource credits by a regional
3renewable resource credit tracking system. The rules shall specify the manner for
4aggregating or allocating credits under this subdivision or sub. (2) (b) 4. or 5
.
SB459-engrossed, s. 94 5Section 94. 196.378 (3) (a) 2. of the statutes is created to read:
SB459-engrossed,45,126 196.378 (3) (a) 2. The commission shall promulgate rules for calculating the
7amount of a renewable resource credit that is created from a renewable facility
8placed into service before January 1, 2004. The rules shall provide that the amount
9of a renewable resource credit created on or after January 1, 2004, from such a
10renewable facility, except a renewable facility owned by a retail customer of an
11electric provider, is limited to the incremental increase in output from the renewable
12facility that is due to capacity improvements made on or after January 1, 2004.
SB459-engrossed, s. 95 13Section 95. 196.378 (3) (b) of the statutes is amended to read:
SB459-engrossed,45,1514 196.378 (3) (b) The commission may promulgate rules that establish
15requirements and procedures for a sale under par. (a) 1.
SB459-engrossed, s. 96 16Section 96. 196.378 (3) (c) of the statutes is created to read:
SB459-engrossed,45,2317 196.378 (3) (c) A renewable resource credit created under s. 196.378 (3) (a),
182003 stats., may not be used after December 31, 2011. A renewable resource credit
19created under par. (a) 1. or 2., as affected by 2005 Wisconsin Act .... (this act), may
20not be used after the 4th year after the year in which the credit is created, except the
21commission may promulgate rules specifying a different period of time if the
22commission determines that such period is necessary for consistency with any
23regional renewable resource credit trading program that applies in this state.
SB459-engrossed, s. 97 24Section 97. 196.378 (4m) of the statutes is created to read:
SB459-engrossed,46,8
1196.378 (4m) Additional renewable resources requirements. (a) The
2commission may not impose on an electric provider any requirement that increases
3the electric provider's renewable energy percentage beyond that required under sub.
4(2) (a) 2. If an electric provider is in compliance with the requirements of sub. (2) (a)
52., the commission may not require the electric provider to undertake, administer,
6or fund any other renewable energy program. This paragraph does not limit the
7authority of the commission to enforce an electric provider's obligations under s.
8196.374.
SB459-engrossed,46,129 (b) An electric utility may, with commission approval, administer or fund a
10program that increases the electric utility's renewable energy percentage beyond
11that required under sub. (2) (a) 2. The commission may not order an electric utility
12to administer or fund a program under this paragraph.
SB459-engrossed, s. 98 13Section 98. 196.378 (4r) of the statutes is created to read:
SB459-engrossed,46,2014 196.378 (4r) Reports. No later than July 1 of each even-numbered year, the
15commission shall submit a report to the governor and chief clerk of each house of the
16legislature for distribution to the legislature under s. 13.172 (2) that evaluates the
17impact of the requirements of this section on the rates and revenue requirements of
18electric providers and compares that impact with the impact that would have
19occurred if renewable energy practices of electric providers were subject to market
20forces in the absence of the requirements of this section.
SB459-engrossed, s. 99 21Section 99. 196.378 (5) (intro.) of the statutes is amended to read:
SB459-engrossed,47,422 196.378 (5) Penalty. (intro.) Any person who violates sub. (2) or any wholesale
23renewable energy supplier who provides an electric provider with a false or
24misleading certification regarding the sources or amounts of renewable energy
25supplied at wholesale to the electric provider shall forfeit not less than $5,000 nor

1more than $500,000. Forfeitures under this subsection shall be enforced by action
2on behalf of the state by the attorney general. A court imposing a forfeiture under
3this subsection shall consider all of the following in determining the amount of the
4forfeiture:
SB459-engrossed, s. 100 5Section 100. 285.48 (4) (a) of the statutes is amended to read:
SB459-engrossed,47,96 285.48 (4) (a) The use of renewable energy, including renewable energy that
7is provided by electric providers for the purpose of complying with the requirements
8of s. 196.378 (2) (a) 2., or renewable energy that is used under programs specified in
9s. 196.374 (2) (d) that are funded by expenditures
under s. 196.374 (3).
SB459-engrossed, s. 101 10Section 101. 285.48 (4) (b) of the statutes is amended to read:
SB459-engrossed,47,1411 285.48 (4) (b) The implementation of low-income weatherization and energy
12conservation measures, including programs established under s. 16.957 (2) (a) or (b)
13or programs specified in s. 196.374 (2) (a) or (b) that are funded by expenditures
14under s. 196.374 (3).
SB459-engrossed, s. 102 15Section 102 . Nonstatutory provisions.
SB459-engrossed,47,2216 (1) Initial contracts. To promote administrative efficiency and build on
17existing, successful programs, the public service commission shall direct energy
18utilities, as defined in section 196.374 (1) (e) of the statutes, as affected by this act,
19to negotiate initial contracts under section 196.374 (2) (a) 1. of the statutes, as
20affected by this act, with the holders of current contracts under section 16.957 (3) (b),
212003 stats., to the extent that the programs administered by those contract holders
22are functioning effectively and accomplishing most or all of the goals set for them.
SB459-engrossed,48,523 (2) Corn-burning furnace pilot program. The department of administration
24shall conduct a pilot program under section 16.957 (2) (b) 1. b. of the statutes during
25the winter heating season between November 1, 2006, and March 1, 2007, to

1determine the feasibility and cost-effectiveness of the use of residential space
2heating equipment in this state that is fueled by biomass, as defined in section
3196.378 (1) (a) of the statutes, from corn plants. The department of administration
4shall report to the legislature the results of the pilot program in the report required
5under section 16.957 (2) (d) 4. of the statutes.
SB459-engrossed,48,186 (3) Review of Energy Conservation Code. Notwithstanding section 101.027
7(3) (a) and (b) of the statutes, the department of commerce shall begin a review of the
8energy conservation code, as defined in section 101.027 (1) (a) of the statutes, on the
9effective date of this subsection and shall complete that review and submit proposed
10rules changing the energy conservation code as provided in section 101.027 (2) of the
11statutes to the legislative council staff under section 227.15 (1) of the statutes by no
12later than the first day of the 18th month beginning after the effective date of this
13subsection. Notwithstanding section 101.027 (2) of the statutes, in conducting the
14review under this subsection, the department of commerce, to the extent practicable,
15shall consider incorporating into the energy conservation code design requirements
16from the most current national energy efficiency design standards for new buildings,
17except low-rise residential buildings, published by the American society of heating,
18refrigerating, and air-conditioning engineers.
SB459-engrossed,48,2419 (4) Anaerobic digestor research. The department of agriculture, trade and
20consumer protection shall include, as part of its 2007-09 biennial budget request
21that it submits to the department of administration under section 16.42 of the
22statutes, a proposal to provide additional funding for the research and development
23of anaerobic digestors at farms participating in the discovery farms program under
24the Wisconsin agricultural stewardship initiative.
SB459-engrossed,48,2525 (5) Public service commission prohibitions.
SB459-engrossed,49,1
1(a) In this subsection:
SB459-engrossed,49,2 21. "Commission" means the public service commission.
SB459-engrossed,49,4 32. "Energy efficiency program" has the meaning given in section 196.374 (1) (d),
4as affected by this act.
SB459-engrossed,49,5 53. "Public utility" has the meaning given in section 196.01 (5) of the statutes.
SB459-engrossed,49,7 64. "Renewable resource program" has the meaning given in section 196.374 (1)
7(k), as affected by this act.
SB459-engrossed,49,9 85. "Total renewable energy" has the meaning given in section 196.378 (1) (o) of
9the statutes.
SB459-engrossed,49,1310 (b) Beginning on the effective date of this paragraph and ending on June 30,
112007, the commission may not order an investor-owned natural gas or electric public
12utility to administer or fund any energy efficiency or renewable resource program
13that is in addition to the requirements of section 196.374 of the statutes.
SB459-engrossed,49,1514 (c) Paragraph (b ) does not affect the authority of the commission to enforce the
15requirements of section 16.957 or 196.374 of the statutes.
SB459-engrossed,49,1616 (7) Report.
SB459-engrossed,49,1817 (a) In this subsection, "energy utility" has the meaning given in section 196.374
18(1) (e) of the statutes, as created by this act.
SB459-engrossed,49,2319 (b) No later than July 1, 2008, the public service commission shall submit a
20report to the governor and chief clerk of each house of the legislature for distribution
21to the legislature under section 13.172 (2) of the statutes that consists of the
22commission's recommendations on whether any component of an energy utility's
23revenue requirements should be itemized on ratepayer bills.
SB459-engrossed,49,2424 (8) Large energy customers.
SB459-engrossed,49,2525 (a) In this subsection:
SB459-engrossed,50,1
11. "Commission" means the public service commission.
SB459-engrossed,50,3 22. "Energy utility" has the meaning given in section 196.374 (1) (e) of the
3statutes, as created by this act.
SB459-engrossed,50,5 43. "Large energy customer" has the meaning given in section 196.374 (1) (em)
5of the statutes, as created by this act.
SB459-engrossed,50,7 64. "Ordered program" has the meaning given under section 196.374 (1) (i) of the
7statutes, as created by this act.
SB459-engrossed,50,108 (b) No later than July 1, 2007, the commission shall determine the customers
9of energy utilities that, for any month during the 12 months preceding the date of the
10commission's determination, satisfy the definition of large energy customer.
SB459-engrossed,50,1511 (c) For each customer of an energy utility that the commission determines is
12a large energy customer under paragraph (b), the commission shall, no later than
13July 1, 2007, determine the monthly average that the customer paid the energy
14utility in 2005 for recovery under s. 196.374 (3), 2003 stats., and for recovery of the
15costs of ordered programs.
SB459-engrossed, s. 103 16Section 103. Initial applicability.
SB459-engrossed,50,1917 (1) Energy efficiency standards. The treatment of sections 16.855 (10s) and
1820.924 (1) (j) of the statutes first applies with respect to projects for which design
19work begins on the effective date of this subsection.
SB459-engrossed, s. 104 20Section 104. Effective dates. This act takes effect on July 1, 2007, except
21as follows:
SB459-engrossed,51,322 (1) The treatment of sections 16.75 (12), 16.897, 16.953, 79.005 (4) (d), 101.027
23(1) (intro.), (a), and (b), (2), and (3) (a) 1. and 2. and (b) 1. and 2., 196.378 (1) (a), (ag),
24(bm), (e), (f), (fg), (fm), (fr), (g), (i), (n), (o), and (p), (2) (a), (b) 1., 1m., 3., 4., and 5., (c),
25(e), (f), and (g), (3) (b), and (c), (4m), (4r), and (5) (intro.) of the statutes, the creation

1of section 196.378 (3) (a) 2. of the statutes, and the renumbering and amendment of
2section 196.378 (3) (a) of the statutes and Section 102 (2 ), (4), (5), (7 ), and (8) of this
3act take effect on the day after publication.
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