SB450: Bill Text

This bill also requires DATCP and DNR to study whether financial incentives provided to bioenergy feedstock producers by state and federal programs, in effect on the effective date of the bill, are adequate to prompt the sustainable production of a supply of biomass that will significantly contribute to the achievement of state greenhouse gas emission reduction goals. The bill requires DATCP and DNR to work with OEI, the University of Wisconsin System, the PSC, and representatives of interested parties, including natural resources organizations, in the preparation of the study.

If DATCP and DNR determine, as a result of the study, that current state and federal financial incentives are not adequate, DATCP and DNR must, by July 1, 2013, prepare and submit to the Climate Change Coordinating Council recommended changes to current law and proposed new legislation to induce bioenergy feedstock producers to sustainably increase their production of biomass in order to achieve state greenhouse gas emission reduction goals. DATCP and DNR must consider, as part of the recommendations, methods to reduce financial risk to bioenergy feedstock producers and the expansion of programs that award credits to producers who reduce greenhouse gas emissions or use renewable resources in place of fossil fuels.

Forestry

Under current law, DNR awards grants to certain eligible private forest land owners to develop and implement forest stewardship management plans and to award grants to groups of interested parties for projects to control invasive plants in weed management areas. Each grant recipient must provide a matching contribution in an amount determined by DNR for that particular grant based on criteria promulgated by DNR by rule.

This bill requires DNR to promulgate rules that describe those forest stewardship management plan practices that are eligible for funding under the grant program, including establishing and maintaining trees; implementing measures to protect those trees from damage caused by deer; and implementing measures that promote forest health, including insect and disease control. The bill also limits the matching contribution required to be made by a grant recipient who is awarded a grant to plant and maintain trees to not more than 25 percent of that portion of the grant that is for the costs incurred in planting and maintaining the trees, subject to the availability of funds.

The bill requires DNR to provide technical assistance to promote sustainable forest management that increases the long term storage of carbon (carbon sequestration) in forests owned by private persons and to assist them to generate marketable credits that can be used by purchasers to satisfy limits on emissions of greenhouse gases. The bill requires DNR to produce standards and practices for monitoring and measuring carbon sequestration by forests. The bill also requires DNR to attempt to identify owners of private forest land who do not participate in forestry programs, and to notify those owners about information and technical assistance available from DNR concerning carbon sequestration and sustainable forest management.

Air pollution permitting for sources reducing greenhouse gas emissions

Under current law, a person must generally obtain an air pollution construction permit from DNR before constructing or modifying a stationary source of air pollution. Permitting and other requirements vary depending on whether a stationary source is considered a major source or a minor source. The determination of whether a source is a major source is based on provisions of the federal Clean Air Act. Currently, EPA delegates to DNR the authority to administer the federal Clean Air Act in this state.

Current law requires DNR to assess air pollution permit obligations for stationary sources and to implement measures, consistent with state and federal law, to lessen those obligations, such as by expanding the availability of simplified permitting processes.

This bill requires DNR to implement measures to lessen air pollution permit obligations for the construction or modification of a stationary source for which a major source construction permit is not required if the construction or modification would significantly reduce emissions of greenhouse gasses.

Industrial development bonds

Under federal law, income earned on certain revenue bonds issued by a state or municipality may be exempt from federal income taxes. Federal law imposes a limit, or volume cap, on the total aggregate dollar amount of certain tax-exempt revenue bonds that may be issued by eligible entities in a state in any calendar year. Under current law, Commerce has established by rule and administers a system for the allocation of federal income tax-exempt revenue bonding authority among municipalities, the Wisconsin Housing and Economic Development Authority, the Wisconsin Health and Educational Facilities Authority, and the Wisconsin Aerospace Authority.

Current law authorizes municipalities to issue industrial development revenue bonds for a variety of purposes, including to finance the costs of manufacturing facilities, hospitals, industrial parks, recreational facilities, convention centers and trade centers, pollution control facilities, and sewage and solid and liquid waste disposal facilities systems. If Commerce allocates a portion of the volume cap to a project and industrial development revenue bonds are issued in accordance with state and federal law, the industrial development revenue bonds are exempt from federal income tax.

This bill requires Commerce to, by rule, annually dedicate 25 percent of that portion of the volume cap allocated to municipalities to private revenue bonds issued to finance clean energy manufacturing facilities and renewable power generating facilities. Clean energy manufacturing facilities are defined by the bill to include facilities that manufacture energy efficient fixtures or building components, equipment used to produce energy from a renewable resource, and certain advanced drive train vehicles. A renewable power generating facility is defined to mean a facility owned by a person other than a utility or an electric cooperative with equipment to generate its own electricity or energy from a renewable resource. The bill defines a renewable resource as a resource that derives energy from any source other than coal, petroleum products, nuclear power or, with limited exceptions, natural gas. Under the bill, renewable resources include resources deriving power from solar energy, wind energy, geothermal technology, and fuel cell technology.

Commerce may, beginning on September 1 of any year, reallocate any portion of the 25 percent allocated to clean energy manufacturing facilities and renewable power generating facilities for which no revenue bonds have been issued and for which no resolutions authorizing the issuance of a revenue bond have been adopted.

Report on cap and trade program

This bill requires DNR to report to the legislature and the governor if the federal government establishes, or governors of this state and other midwestern states recommend, a greenhouse gas cap and trade program, which is a program that imposes limits on greenhouse gas emissions and provides for the trading of allowances that may be used to satisfy those limits.

For further information see the state and local 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:

SB450, s. 1 Section 1. 15.347 (3) of the statutes is created to read:

SB450,30,4 15.347 (3) Climate change coordinating council. (a) Creation; membership. There is created in the department of natural resources a climate change coordinating council consisting of the following members:

SB450,30,5 1. The secretary of administration or his or her designee.

SB450,30,6 2. The secretary of natural resources or his or her designee.

SB450,30,7 3. The secretary of commerce or his or her designee.

SB450,30,9 4. The secretary of agriculture, trade and consumer protection or his or her designee.

SB450,30,10 5. The secretary of health services or his or her designee.

SB450,30,11 6. The secretary of transportation or his or her designee.

SB450,30,12 7. The president of the University of Wisconsin System or his or her designee.

SB450,30,13 8. The chairperson of the public service commission or his or her designee.

SB450,31,2 9. The executive director of the office of energy independence or his or her designee.

SB450,31,3 10. One person to represent the governor, appointed to a 4-year term.

SB450,31,6 (b) Designees. A person who is authorized under par. (a) to appoint a designee may only appoint a designee who is an employee or appointive officer of the person's agency.

SB450, s. 2 Section 2. 16.75 (12) (a) 4. of the statutes is amended to read:

SB450,31,10 16.75 (12) (a) 4. "Renewable resource" has the meaning given in s. 196.378 (1) (h) 1. or 2. and includes a resource, as defined in s. 196.378 (1) (j), that derives electricity from hydroelectric power 196.374 (1) (j).

SB450, s. 3 Section 3. 16.856 of the statutes is created to read:

SB450,31,12 16.856 Design standards for state buildings. (1) In this section:

SB450,31,16 (a) "Major construction project" means a project to construct or expand a state building; a project to repair, renew, or renovate an existing state building that affects at least 35,000 square feet of enclosed space; or a project that affects the envelope or heating, ventilation, or air conditioning system of an existing state building.

SB450,31,18 (b) "Minor construction project" means a project to construct, repair, renew, renovate, or expand a state building that is not a major construction project.

SB450,31,23 (2) The department shall ensure that the plans and specifications for each major construction project conform to the design standards promulgated by the department of commerce under s. 101.027 (4) unless the department or the building commission is required by another law to apply a stricter standard for the plans or specifications.

SB450,32,4 (3) The department shall ensure that the plans and specifications for each minor construction project conform to the design standards promulgated by the department of commerce under s. 101.027 (4) if the department determines that compliance is technically feasible and cost effective. This subsection does not apply if the department or the building commission is required by another law to apply a stricter standard for the plans or specifications.

SB450, s. 4 Section 4. 16.954 of the statutes is created to read:

SB450,32,6 16.954 Greenhouse gas emission; energy use. (1) In this section:

SB450,32,7 (a) "Agency" has the meaning given in s. 16.70 (1e).

SB450,32,8 (b) "Biomass" has the meaning given in s. 196.374 (1) (am).

SB450,32,9 (c) "Greenhouse gas" has the meaning given in s. 299.03 (1) (d).

SB450,32,11 (2) The department shall prescribe guidelines and protocols for use by agencies to which s. 299.045 applies in:

SB450,32,13 (a) Estimating the amount of greenhouse gas emissions that are attributable to activities of each of those agencies under s. 299.045 (2).

SB450,32,15 (b) Establishing achievable goals for the reduction in greenhouse gas emissions that are attributable to each of those agencies under s. 299.045 (3) (a).

SB450,32,16 (c) Developing plans to achieve the goals established under s. 299.045 (3) (a).

SB450,32,18 (3) The department shall assist agencies to which s. 299.045 applies in complying with s. 299.045 with regard to energy use in facilities used by the agencies.

SB450,32,22 (4) The department shall establish a schedule of energy efficiency goals for each agency to which s. 299.045 applies that are designed to ensure that, by 2030, the overall energy use by all agencies is reduced to a level that is 30 percent lower than the overall energy use by all agencies in 2005.

SB450,33,2 (5) The department shall establish goals for each agency to which s. 299.045 applies that are designed to ensure that overall use by all agencies of energy derived from biomass sources is at least equivalent to the following percentages by the dates specified:

SB450,33,3 (a) Ten percent by 2010.

SB450,33,4 (b) Fifteen percent by 2015.

SB450,33,5 (c) Twenty percent by 2020.

SB450,33,6 (d) Twenty-five percent by 2025.

SB450,33,9 (6) No later than July 1 of each odd-numbered year, the department of administration shall prepare and submit to the department of natural resources a report that summarizes the reports received under s. 299.045 (5) in that year.

SB450, s. 5 Section 5. 16.956 (1) (bk) and (bn) and (3) (f) to (i) of the statutes are created to read:

SB450,33,12 16.956 (1) (bk) "Biomass" has the meaning given in s. 196.374 (1) (am).

SB450,33,13 (bn) "Greenhouse gas" has the meaning given in s. 299.03 (1) (d).

SB450,33,16 (3) (f) Assist agencies to which s. 299.045 applies in complying with s. 299.045 with regard to the use of transportation fuels by the agencies and their officers, employees, and agents.

SB450,33,21 (g) Provide information to school districts regarding opportunities to minimize expenses and environmental impacts through the modification of facilities and operational practices that maximize the efficiency of energy use, maximize the use of renewable energy resources, and otherwise minimize emissions of greenhouse gases.

SB450,34,2 (h) Encourage and assist school districts to voluntarily conduct the analyses described in s. 299.045 (2), establish achievable goals for the reduction of greenhouse gas emissions identified in their analyses as provided in s. 299.045 (3), and develop and implement a plan for achieving their goals by means of specific actions to be taken by specific dates.

SB450,34,9 (i) No later than July 1 of each odd-numbered year, report to the departments of administration and natural resources regarding the voluntary participation of school districts in the establishment of goals and the development and implementation of plans for achieving goals under par. (h), the accomplishments of school districts in implementing those plans, and the verifiable reductions of energy use, greenhouse gas emissions, and school district expenses attributable to implementation of those plans.

SB450, s. 6 Section 6. 16.956 (3) (j) of the statutes is created to read:

SB450,34,12 16.956 (3) (j) Annually compile a report containing statistics on energy use and production in this state and make the report available on its Internet site.

SB450, s. 7 Section 7. 16.965 (1) (a) of the statutes is renumbered 16.965 (1) (am).

SB450, s. 8 Section 8. 16.965 (1) (ag) of the statutes is created to read:

SB450,34,15 16.965 (1) (ag) "Greenhouse gas" has the meaning given in s. 299.03 (1) (d).

SB450, s. 9 Section 9. 16.965 (1) (c) of the statutes is created to read:

SB450,34,18 16.965 (1) (c) "Traditional neighborhood development" has the meaning given in s. 66.1027 (1) (c).

SB450, s. 10 Section 10. 16.965 (2) of the statutes is amended to read:

SB450,35,12 16.965 (2) From Subject to sub. (5), from the appropriations under s. 20.505 (1) (cm) and (if), the department may provide grants to local governmental units to be used to finance the cost of planning activities, including contracting for planning consultant services, public planning sessions and other planning outreach and educational activities, or for the purchase of computerized planning data, planning software or the hardware required to utilize that data or software. The department shall require any local governmental unit that receives a grant under this section to finance a percentage of the cost of the product or service to be funded by the grant from the resources of the local governmental unit. The department shall determine the percentage of the cost to be funded by a local governmental unit based on the number of applications for grants and the availability of funding to finance grants for the fiscal year in which grants are to be provided. A local governmental unit that desires to receive a grant under this subsection shall file an application with the department. The application shall contain a complete statement of the expenditures proposed to be made for the purposes of the grant. No local governmental unit is eligible to receive a grant under this subsection unless the local governmental unit agrees to utilize the grant to finance planning for all of the purposes specified in s. 66.1001 (2).

SB450, s. 11 Section 11. 16.965 (4) (g) of the statutes is created to read:

SB450,35,15 16.965 (4) (g) Planning efforts that include consideration of traditional neighborhood development.

SB450, s. 12 Section 12. 16.965 (5) of the statutes is created to read:

SB450,35,19 16.965 (5) The department shall require any local governmental unit that receives a grant under this section for planning activities to consider, as part of the planning activities, all of the following:

SB450,35,21 (a) Whether any area considered for traditional neighborhood development is any of the following:

SB450,35,22 1. Surrounded by or adjacent to existing development.

SB450,35,25 2. Within a sewer service territory in the sewer service area provisions of an areawide water quality management plan under s. 283.83 approved by the department of natural resources.

SB450,36,1 3. An area consisting primarily of blighted properties.

SB450,36,3 4. An area that meets other criteria, specified by the department by rule, designed to ensure that the project reduces greenhouse gas emissions.

SB450,36,6 (b) With respect to the transportation element of the planning activities, whether making any area a traditional neighborhood development would result in a reduction of travel, energy use, or emissions of greenhouse gases.

SB450, s. 13 Section 13. 20.115 (4) (d) of the statutes is created to read:

SB450,36,9 20.115 (4) (d) Energy crop reserve program; payments. The amounts in the schedule for payments under the energy crop reserve program under s. 93.47.

SB450, s. 14 Section 14. 20.155 (3) (s) of the statutes is repealed.

SB450, s. 15 Section 15. 25.96 of the statutes is amended to read: