SB450: Bill Text

SB450, s. 197 Section 197. 196.378 (2) (e) (intro.) of the statutes is amended to read:

SB450,110,10 196.378 (2) (e) (intro.) An electric provider, or a wholesale supplier for its members, may request that the commission grant a delay for complying with a deadline specified in par. (a) 2. the renewable portfolio standard. The commission shall hold a hearing on the request and, if requested by the electric provider or wholesale supplier, treat the matter as a contested case. The commission shall grant a delay if the commission determines that the applicant has demonstrated good faith efforts to comply with the deadline and that any of the following applies:

SB450, s. 198 Section 198. 196.378 (2) (f) of the statutes is amended to read:

SB450,110,21 196.378 (2) (f) A wholesale electric cooperative for its members or a municipal electric company supplier for its members or customers may delay compliance with a deadline specified in par. (a) 2. the renewable portfolio standard for any reason specified in par. (e) 1. to 4. A wholesale electric cooperative or a municipal electric company supplier that delays compliance with a deadline specified in par. (a) 2. the renewable portfolio standard shall inform the commission of the delay and the reason for the delay, and shall submit information to the commission demonstrating that, notwithstanding good faith efforts by the wholesale electric cooperative or municipal electric company supplier and its members or customers, the members or customers cannot meet the deadline for the stated reason.

SB450, s. 199 Section 199. 196.378 (2) (g) 2. of the statutes is amended to read:

SB450,111,5 196.378 (2) (g) 2. An energy consumer advocacy group may request that the commission grant to an electric provider that serves one or more members of the group a delay for complying with a deadline specified in par. (a) 2. the renewable portfolio standard. The commission shall hold a hearing on the request and, if requested by the energy consumer advocacy group, treat the matter as a contested case. The commission shall grant a delay if the commission determines that the utility has demonstrated good faith efforts to comply with the deadline and that any of the conditions in par. (e) 1. to 4. apply.

SB450, s. 200 Section 200. 196.378 (2) (h) of the statutes is created to read:

SB450,111,10 196.378 (2) (h) For purposes of pars. (e), (f), and (g), a renewable energy percentage deadline for a year and an in-state percentage deadline for the same year are separate deadlines for which separate delays must be granted or authorized under par. (e), (f), or (g).

SB450, s. 201 Section 201. 196.378 (3) of the statutes is repealed and recreated to read:

SB450,111,16 196.378 (3) Renewable resource credits. (a) 1. Except as provided in par. (d), whenever a person generates renewable energy, the person creates renewable resource credits in an amount equal to one credit for each megawatt hour of renewable energy generated. A person that generates renewable energy may do any of the following:

SB450,111,20 a. Sell the renewable energy and the associated renewable resource credits to any other person. For renewable energy that is sold at wholesale in this state, the sale is considered to include the associated renewable resource credits unless an agreement between the parties specifies otherwise.

SB450,111,24 b. Except as provided in s. 196.379 (6), separate the renewable resource credits from the renewable energy and sell, trade, transfer, assign, bank for future use, or permanently retire the credits or, if the person is an electric provider, elect to include the credits in the electric provider's renewable energy percentage.

SB450,112,3 2. A person that purchases renewable energy from which the associated renewable resource credits have not been separated may take any of the actions described in subds. 1. a. and b.

SB450,112,7 3. A person that purchases renewable resource credits may sell, trade, transfer, assign, bank for future use, or permanently retire the credits, or, if the person is an electric provider, elect to include the credits in the electric provider's renewable energy percentage.

SB450,112,13 4. An electric provider may include renewable resource credits created by the generation of renewable energy outside this state in the electric provider's renewable energy percentage if the credits are documented in a regional renewable resource credit tracking system designated by the commission in rules promulgated under par. (b) and the credits satisfy the requirements of this subsection and the rules promulgated under par. (b).

SB450,112,17 5. An electric provider may not include a renewable resource credit in the electric provider's renewable energy percentage if the renewable resource credit or renewable energy from which the credit has been separated has been used to comply with the renewable energy requirements of another state.

SB450,112,20 6. An electric provider may not use renewable resource credits created by the generation of renewable energy outside this state to comply with an in-state percentage requirement of the renewable portfolio standard.

SB450,112,23 7. A renewable resource credit remains eligible to be included in a renewable energy percentage until an electric provider uses the credit in the electric provider's renewable energy percentage or the owner of the credit retires the credit.

SB450,113,4 (b) The commission shall promulgate rules that establish requirements and procedures for creating, selling, trading, transferring, assigning, banking, and retiring renewable resource credits, for an electric provider's inclusion of renewable resource credits in the electric provider's renewable energy percentage, and for tracking renewable resource credits under a regional renewable resource credit tracking system designated by the commission.

SB450,113,8 (c) The commission shall promulgate rules that allow an electric provider to include in the electric provider's renewable energy percentage renewable energy generated or purchased by the electric provider from which renewable resource credits have not been separated.

SB450,113,11 (d) Renewable resource credits associated with hydroelectric power specified in sub. (2) (b) 1m. a. and b. may not be sold, traded, transferred, assigned, or banked for future use.

SB450, s. 202 Section 202. 196.378 (3m) of the statutes is created to read:

SB450,113,24 196.378 (3m) Nonelectric energy. (a) The commission shall promulgate rules allowing an electric provider to include in its renewable energy percentage for a year the megawatt hour equivalent of nonelectric energy produced or generated by the electric provider in the year. The commission shall also promulgate rules allowing any person, including an electric provider, to create a certificate documenting the megawatt hour equivalent of nonelectric energy produced or generated by the person in a year and to sell the certificate to an electric provider for inclusion in the electric provider's renewable energy percentage for that year. An electric provider who purchases a certificate may sell the certificate to another electric provider, but a certificate may be included in an electric provider's renewable energy percentage only in the year that the nonelectric energy documented by the certificate was generated. There is no limit on the number of sales in a year by electric providers.

SB450,114,4 (b) The rules promulgated under par. (a) shall include requirements and procedures for determining the megawatt hour equivalent of nonelectric energy, measuring and verifying nonelectric energy, and demonstrating that nonelectric energy has displaced fossil fuel use in this state.

SB450, s. 203 Section 203. 196.378 (4) of the statutes, as affected by 2009 Wisconsin Act 40, is repealed.

SB450, s. 204 Section 204. 196.378 (4m) (a) of the statutes is amended to read:

SB450,114,15 196.378 (4m) (a) The commission may not impose on an electric provider any requirement that increases the electric provider's renewable energy percentage or in-state percentage beyond that required under sub. (2) (a) 2. the renewable portfolio standard. If an electric provider is in compliance with the requirements of sub. (2) (a) 2. renewable portfolio standard, the commission may not require the electric provider to undertake, administer, or fund any other renewable energy program. This paragraph does not limit the authority of the commission to enforce an electric provider's obligations under s. 196.374 or 196.379.

SB450, s. 205 Section 205. 196.378 (4m) (b) of the statutes is amended to read:

SB450,114,21 196.378 (4m) (b) An electric utility may, with commission approval, administer or fund a program that increases the electric utility's renewable energy percentage or in-state percentage beyond that required under sub. (2) (a) 2. the renewable portfolio standard. The commission may not order an electric utility to administer or fund a program under this paragraph.

SB450, s. 206 Section 206. 196.378 (5) (intro.) of the statutes is amended to read:

SB450,115,5 196.378 (5) Penalty. (intro.) Any person who violates sub. (2) or any renewable energy supplier who provides an electric provider with a false or misleading certification information regarding the sources or amounts of renewable energy supplied at wholesale to the electric provider shall forfeit not less than $5,000 nor more than $500,000. Forfeitures under this subsection shall be enforced by action on behalf of the state by the attorney general. A court imposing a forfeiture under this subsection shall consider all of the following in determining the amount of the forfeiture:

SB450, s. 207 Section 207. 196.378 (5) (a) of the statutes is amended to read:

SB450,115,8 196.378 (5) (a) The appropriateness of the forfeiture to the person's or wholesale supplier's volume of business.

SB450, s. 208 Section 208. 196.379 of the statutes is created to read:

SB450,115,10 196.379 Renewable tariffs. (1) Definitions. In this section:

SB450,115,11 (a) "Electric utility" has the meaning given in s. 196.378 (1r) (d).

SB450,115,13 (b) "Large electric utility" means an electric utility that had retail electric sales in 2008 of 2,500,000 megawatt hours or more.

SB450,115,14 (c) "Renewable energy" means electricity derived from a renewable facility.

SB450,115,17 (d) "Renewable facility" means an electric generating facility that is a small-scale facility, as determined by the commission, and that derives energy from any of the following:

SB450,115,18 1. Photovoltaic energy.

SB450,115,19 2. Wind power.

SB450,115,20 3. Gas made from a renewable resource.

SB450,115,21 4. Any other renewable resource specified by the commission.

SB450,115,22 (e) "Renewable resource" has the meaning given in s. 196.374 (1) (j).

SB450,115,23 (f) "Renewable resource credit" has the meaning given in s. 196.378 (1r) (i).

SB450,115,25 (g) "Small electric utility" means an electric utility that had retail electric sales in 2008 of less than 2,500,000 megawatt hours.

SB450,116,3 (2) Purpose. The purpose of this section is to maximize the development and deployment of distributed renewable energy generation technologies used at renewable facilities without unreasonable impacts on electric utility rates.

SB450,116,8 (3) Orders. (a) Generally. Except as provided in par. (b), the commission shall issue an order directed to each electric utility requiring the electric utility to offer to purchase, under standard purchase terms and other conditions specified in the order, the renewable energy generated at renewable facilities within the electric utility's service territory that are constructed after the effective date of the order.

SB450,116,12 (b) Exemptions. 1. `Small electric utilities.' In an order under par. (a) directed to a small electric utility, the commission may provide that the small electric utility is not required to purchase renewable energy generated at particular types of renewable facilities specified in the order.

SB450,116,15 2. `Large electric utilities.' If the commission finds that a large electric utility's voluntary initiatives are consistent with the purpose of this section, the commission may do any of the following:

SB450,116,16 a. Exempt the large electric utility from the requirement under par. (a).

SB450,116,19 b. In an order under par. (a) directed to the large electric utility, provide that the large electric utility is not required to purchase renewable energy generated at particular types of renewable facilities specified in the order.

SB450,116,24 3. `Agreements.' Notwithstanding par. (a), an electric utility may purchase renewable energy generated at a renewable facility under terms and conditions that differ from those specified in an order under par. (a) directed at the electric utility if the electric utility and owner or operator of the renewable facility mutually agree to the terms and conditions.

SB450,117,3 (c) Standard purchase terms. An order under par. (a) directed to an electric utility shall specify the standard purchase terms that apply for each type of renewable facility, including terms for all of the following:

SB450,117,5 1. The price paid for renewable energy, based on the commission's consideration of all of the following:

SB450,117,6 a. The cost of producing renewable energy at the type of renewable facility.

SB450,117,7 b. A reasonable rate of return on investment for the type of renewable facility.

SB450,117,9 c. State and federal financial incentives, including production tax credits, that are available to owners or operators of the type of renewable facility.

SB450,117,12 2. A schedule of payments for the renewable energy over a sufficient period of time to allow for recovery of the construction and operation costs for the type of renewable facility.

SB450,117,14 3. A maximum limit on the generating capacity for the type of renewable facility.

SB450,117,16 (d) Other conditions. An order under par. (a) directed to an electric utility may include any of the following conditions:

SB450,117,18 1. Requirements for adjusting the standard purchase terms under par. (c) based on changes in operating costs for a type of renewable facility.

SB450,117,20 2. Different prices for renewable energy generated at renewable facilities of the same type that have different generating capacities.

SB450,117,21 3. Other conditions specified by the commission.

SB450,118,2 (e) Standardized agreements. An order under par. (a) directed to an electric utility shall prescribe for each type of renewable facility a standardized agreement that includes the standard purchase terms and other conditions applicable to the electric utility's purchase of renewable energy from owners or operators of the type of renewable facility.

SB450,118,6 (4) Purchase limits. The commission may limit the requirement of an electric utility to purchase renewable energy under an order under sub. (3) (a) if the commission finds that the limit is consistent with the purpose of this section. The commission may base the limit on any of the following:

SB450,118,8 (a) The number of renewable facilities from which the electric utility must purchase renewable energy.

SB450,118,10 (b) The total installed generating capacity of the renewable facilities from which the electric utility must purchase renewable energy.

SB450,118,12 (c) The total amount of renewable energy that the electric utility must purchase.

SB450,118,18 (5) Reviews. The commission shall periodically review its orders under sub. (3) (a) and, as appropriate, revise the standardized agreements prescribed in the orders to change the standard purchase terms and other conditions. A revision under this subsection does not apply to a standardized agreement entered into by an electric utility and an owner or operator of a renewable facility before the effective date of the revision.

SB450,118,22 (6) Renewable resource credits. An electric utility that purchases renewable energy under an order under sub. (3) (a) acquires, in addition to the renewable energy, the renewable resource credits associated with the generation of the renewable energy, unless an agreement between the parties specifies otherwise.

SB450, s. 209 Section 209. 196.49 (1) of the statutes is renumbered 196.49 (1r).

SB450, s. 210 Section 210. 196.49 (1g) of the statutes is created to read:

SB450,118,25 196.49 (1g) In this section:

SB450,119,4 (a) "Nuclear power plant" means a nuclear power plant, as defined in s. 196.491 (1) (j), for which the commission has issued a certificate of public convenience and necessity under s. 196.491 (3) on or after the date specified in the notice published under s. 196.493 (3) (b).

SB450,119,6 (b) "Nuclear power plant owner or operator" means a person, other than a public utility, that owns or operates a nuclear power plant.

SB450, s. 211 Section 211. 196.49 (2) of the statutes is amended to read:

SB450,120,2 196.49 (2) No public utility may begin the construction, installation, or operation of any new plant, equipment, property, or facility, nor the construction or installation of any extension, improvement, or addition to its existing plant, equipment, property, apparatus, or facilities, and no nuclear power plant owner or operator may begin the construction or installation of any extension, improvement, or addition to a nuclear power plant or equipment, property, apparatus, or facilities for a nuclear power plant, unless the public utility or nuclear power plant owner or operator has complied with any applicable rule or order of the commission. If a cooperative association has been incorporated under ch. 185 for the production, transmission, delivery or furnishing of light or power and has filed with the commission a map of the territory to be served by the association and a statement showing that a majority of the prospective consumers in the area are included in the project, no public utility may begin any such construction, installation or operation within the territory until after the expiration of 6 months from the date of filing the map and notice. If the cooperative association has entered into a loan agreement with any federal agency for the financing of its proposed system and has given written notice of the agreement to the commission, no public utility may begin any construction, installation or operation within the territory until 12 months after the date of the loan agreement.

SB450, s. 212 Section 212. 196.49 (3) (a) of the statutes is amended to read:

SB450,120,14 196.49 (3) (a) In this subsection, "project" means construction of any new plant, equipment, property, or facility, or extension, improvement, or addition to its existing plant, equipment, property, apparatus, or facilities , and "project" includes construction by a nuclear power plant owner or operator of any extension, improvement, or addition to a nuclear power plant or to equipment, property, apparatus, or facilities for a nuclear power plant. The commission may require by rule or special order that a public utility or nuclear power plant owner or operator submit, periodically or at such times as the commission specifies and in such detail as the commission requires, plans, specifications, and estimated costs of any proposed project which the commission finds will materially affect the public interest.

SB450, s. 213 Section 213. 196.49 (3) (cm) of the statutes is created to read:

SB450,120,20 196.49 (3) (cm) The commission may attach to the issuance of a certificate under this section for a project by a nuclear power plant owner or operator such terms and conditions that the commission determines are in the public interest. Any term or condition so attached shall apply to any successor in interest of the nuclear power plant owner or operator to whom a certificate is issued.

SB450, s. 214 Section 214. 196.49 (4) of the statutes is amended to read:

SB450,120,25 196.49 (4) The commission may not issue a certificate under sub. (1) (1r), (2), or (3) for the construction of electric generating equipment and associated facilities unless the commission determines that brownfields, as defined in s. 560.13 (1) (a), are used to the extent practicable.

SB450, s. 215 Section 215. 196.49 (5m) of the statutes is created to read:

SB450,121,14 196.49 (5m) The commission shall take final action on an application for a certificate under this section for a proposed renewable facility, as defined in s. 196.378 (1r) (g), within 270 days after issuing a notice to open a docket on the application. If the commission fails to take final action within the 270-day period, the commission is considered to have issued a certificate with respect to the application, unless the commission, within the 270-day period, extends the 270-day period. If the commission is required to prepare an environmental impact statement for the proposed facility, the commission may extend the 270-day period for no more than an additional 90 days, except that, if another state is required to approve the proposed facility, the commission may extend the 270-day period for no more than an additional 90 days after the other state takes final action on the proposal. If the commission fails to take final action within the extended period, the commission is considered to have issued a certificate with respect to the application.

SB450, s. 216 Section 216. 196.49 (6) of the statutes is amended to read:

SB450,121,24 196.49 (6) If the commission finds that any public utility or nuclear power plant owner or operator has taken or is about to take an action which violates or disregards a rule or special order under this section, the commission, in its own name either before or after investigation or public hearing and either before or after issuing any additional orders or directions it deems proper, may bring an action in the circuit court of Dane County to enjoin the action. If necessary to preserve the existing state of affairs, the court may issue a temporary injunction pending a hearing upon the merits. An appeal from an order or judgment of the circuit court may be taken to the court of appeals.

SB450, s. 217 Section 217. 196.491 (1) (g) of the statutes is renumbered 196.491 (1) (g) (intro.) and amended to read: