AB34: Bill Text

LRB-0527/3

MDK:eev:jm

2013 - 2014 LEGISLATURE

2013 Assembly BILL 34

February 18, 2013 - Introduced by Representatives Jacque, Tittl, Bies, Brooks, LeMahieu, Murphy, J. Ott, Schraa, Stone and Marklein, cosponsored by Senators Lasee, Grothman and Gudex. Referred to Committee on Energy and Utilities.

AB34,2,2 An Act to renumber and amend 196.378 (1) (i); to amend 196.378 (title), 196.378 (1) (ag), 196.378 (1) (b), 196.378 (1) (fm) (intro.), 196.378 (1) (fm) 1., 196.378 (1) (fm) 2., 196.378 (1) (o) (intro.), 196.378 (1) (o) 1., 196.378 (1) (o) 2., 196.378 (2) (title), 196.378 (2) (a) 1., 196.378 (2) (a) 2. a., 196.378 (2) (a) 2. b., 196.378 (2) (a) 2. c., 196.378 (2) (a) 2. d., 196.378 (2) (a) 2. e., 196.378 (2) (b) 5., 196.378 (2) (bm), 196.378 (2) (c), 196.378 (2) (d) (intro.), 196.378 (2) (d) 2., 196.378 (2) (e) 2., 196.378 (2) (e) 3., 196.378 (2) (e) 4., 196.378 (3) (title), 196.378 (3) (a) 1., 196.378 (3) (a) 1m., 196.378 (3) (a) 2., 196.378 (3) (c), 196.378 (4m) (title), 196.378 (4m) (a), 196.378 (4m) (b), 196.378 (4r) and 196.378 (5) (intro.); and to create 196.378 (1) (ab), 196.378 (1) (ac) and 196.378 (1) (ad) of the statutes; relating to: the use of nuclear energy to comply with renewable portfolio standards and the time period for using credits to comply with such standards.

Analysis by the Legislative Reference Bureau

Under current law, an electric utility or retail electric cooperative (utility or cooperative) is subject to certain requirements for ensuring that, in a given year, a specified percentage of the electricity that the utility or cooperative sells to retail customers is derived from renewable resources. Such requirements are commonly referred to as "renewable portfolio standards." A utility or cooperative creates renewable resource credits based on the amount of electricity derived from renewable resources that the utility or cooperative sells to its customers or members in a year. Current law allows a utility or cooperative to use the credits to comply with a renewable portfolio standard for a particular year, bank the credits for use in a subsequent year, or sell the credits to another utility or cooperative. Current law defines "renewable resource" to include solar and wind power, geothermal technology, biomass, and other specified resources. A utility or cooperative may not create a credit based on electricity derived from a "conventional resource," which current law defines to include coal, oil, nuclear power, and, with certain exceptions, natural gas.

This bill allows a utility or cooperative to use electricity derived from nuclear power to comply with a renewable portfolio standard. The bill achieves that result by allowing a utility or cooperative to create credits based on the amount of electricity derived from nuclear power that the utility or cooperative sells to its customers or members in a year, in addition to the amount of electricity derived from renewable resources. However, only electricity generated at a nuclear facility in this state may be used to comply with a renewable portfolio standard. In addition, the electricity may not be used if it is subject to a power purchase agreement that was entered into before the bill's effective date.

The bill also eliminates a restriction on the use of credits to comply with renewable portfolio standards. Under current law, a credit may not be used after the fourth year in which the credit is created, unless the Public Service Commission promulgates rules specifying a different time period. This bill eliminates that restriction.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB34,1 Section 1. 196.378 (title) of the statutes is amended to read:

AB34,2,4 196.378 (title) Renewable resources and advanced energy.

AB34,2 Section 2. 196.378 (1) (ab) of the statutes is created to read:

AB34,3,4 196.378 (1) (ab) "Advanced energy" means electricity generated by an advanced facility, but does not include electricity that is subject to a power purchase agreement entered into before the effective date of this paragraph .... [LRB inserts date].

AB34,3 Section 3. 196.378 (1) (ac) of the statutes is created to read:

AB34,3,7 196.378 (1) (ac) "Advanced energy supplier" means a person from whom an electric provider purchases advanced energy at wholesale.

AB34,4 Section 4. 196.378 (1) (ad) of the statutes is created to read:

AB34,3,10 196.378 (1) (ad) "Advanced facility" means an installed and operational facility located in this state that generates electricity from nuclear power.

AB34,5 Section 5. 196.378 (1) (ag) of the statutes is amended to read:

AB34,3,14 196.378 (1) (ag) "Baseline renewable percentage" means the average of an energy provider's renewable energy percentage, as defined in s. 196.378 (1) (fm), 2011 stats., for 2001, 2002, and 2003.

AB34,6 Section 6. 196.378 (1) (b) of the statutes is amended to read:

AB34,3,17 196.378 (1) (b) "Conventional resource" means a resource that derives energy from coal, oil, nuclear power or natural gas, except for natural gas used in a fuel cell.

AB34,7 Section 7. 196.378 (1) (fm) (intro.) of the statutes is amended to read:

AB34,3,23 196.378 (1) (fm) (intro.) "Renewable and advanced energy percentage" means, with respect to an electric provider for a particular year, the percentage that results from dividing the sum of the megawatt hours represented by the following by the total amount of electricity that the electric provider sold to retail customers or members in that year:

AB34,8 Section 8. 196.378 (1) (fm) 1. of the statutes is amended to read:

AB34,4,2 196.378 (1) (fm) 1. The renewable resource credits created from the electric provider's total renewable and advanced energy in that year.

AB34,9 Section 9. 196.378 (1) (fm) 2. of the statutes is amended to read:

AB34,4,6 196.378 (1) (fm) 2. Any renewable resource credits in addition to the renewable resource credits specified in subd. 1. that the electric provider elects to use in that year.

AB34,10 Section 10. 196.378 (1) (i) of the statutes is renumbered 196.378 (1) (jm) and amended to read:

AB34,4,10 196.378 (1) (jm) "Renewable resource "Resource credit" means a credit calculated in accordance with rules promulgated under sub. (3) (a) 1., 1m., and 2.

AB34,11 Section 11. 196.378 (1) (o) (intro.) of the statutes is amended to read:

AB34,4,17 196.378 (1) (o) (intro.) "Total renewable and advanced energy" means the total amount of renewable and advanced energy that the electric provider sold to its customers or members in a year. "Total renewable and advanced energy" does not include any energy that is used to comply with the renewable or advanced energy requirements of another state. "Total renewable and advanced energy" includes all of the following:

AB34,12 Section 12. 196.378 (1) (o) 1. of the statutes is amended to read:

AB34,4,22 196.378 (1) (o) 1. Renewable or advanced energy supplied by a renewable or advanced facility owned or operated by an affiliated interest or wholesale supplier of an electric provider and allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier.

AB34,13 Section 13. 196.378 (1) (o) 2. of the statutes is amended to read:

AB34,5,4 196.378 (1) (o) 2. Renewable or advanced energy purchased by an affiliated interest or wholesale supplier of an electric provider from a renewable or advanced facility that is not owned or operated by the affiliated interest or wholesale supplier, which renewable or advanced energy is allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier.

AB34,14 Section 14. 196.378 (2) (title) of the statutes is amended to read:

AB34,5,6 196.378 (2) (title) Renewable resource and advanced energy.

AB34,15 Section 15. 196.378 (2) (a) 1. of the statutes is amended to read:

AB34,5,15 196.378 (2) (a) 1. No later than June 1, 2016, the commission shall prepare a report stating whether, by December 31, 2015, the state has met a goal of 10 percent of all electric energy consumed in the state being renewable and advanced energy. If the goal has not been achieved, the report shall indicate why the goal was not achieved and how it may be achieved, and the commission shall prepare similar reports biennially thereafter until the goal is achieved. The commission shall submit reports under this subdivision to the governor and chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2).

AB34,16 Section 16. 196.378 (2) (a) 2. a. of the statutes is amended to read:

AB34,5,19 196.378 (2) (a) 2. a. For the years 2006, 2007, 2008, and 2009, each electric provider may not decrease its renewable and advanced energy percentage below the electric provider's baseline renewable percentage.

AB34,17 Section 17. 196.378 (2) (a) 2. b. of the statutes is amended to read:

AB34,5,23 196.378 (2) (a) 2. b. For the year 2010, each electric provider shall increase its renewable and advanced energy percentage so that it is at least 2 percentage points above the electric provider's baseline renewable percentage.

AB34,18 Section 18. 196.378 (2) (a) 2. c. of the statutes is amended to read:

AB34,6,4 196.378 (2) (a) 2. c. For the years 2011, 2012, 2013, and 2014, each electric provider may not decrease its renewable and advanced energy percentage below the electric provider's renewable and advanced energy percentage required under subd. 2. b.

AB34,19 Section 19. 196.378 (2) (a) 2. d. of the statutes is amended to read:

AB34,6,8 196.378 (2) (a) 2. d. For the year 2015, each electric provider shall increase its renewable and advanced energy percentage so that it is at least 6 percentage points above the electric provider's baseline renewable percentage.

AB34,20 Section 20. 196.378 (2) (a) 2. e. of the statutes is amended to read:

AB34,6,12 196.378 (2) (a) 2. e. For each year after 2015, each electric provider may not decrease its renewable and advanced energy percentage below the electric provider's renewable and advanced energy percentage required under subd. 2. d.

AB34,21 Section 21. 196.378 (2) (b) 5. of the statutes is amended to read:

AB34,6,19 196.378 (2) (b) 5. An electric provider that purchases renewable or advanced energy from a renewable or advanced energy supplier may use an allocated share of the renewable or advanced energy sold by the renewable or advanced energy supplier to comply with a requirement under par. (a) 2. or to create a credit under sub. (3) (a), provided that the cost of the renewable or advanced energy is included in the price the electric provider paid the renewable or advanced energy supplier.

AB34,22 Section 22. 196.378 (2) (bm) of the statutes is amended to read:

AB34,6,23 196.378 (2) (bm) Each electric provider shall annually retire renewable resource credits sufficient to satisfy the electric provider's renewable and advanced energy percentage required under par. (a) 2.

AB34,23 Section 23. 196.378 (2) (c) of the statutes is amended to read:

AB34,7,15 196.378 (2) (c) No later than April 15 annually, or another annual date specified by the commission by rule, an electric provider shall submit a report to the commission that identifies the electric provider's renewable and advanced energy percentage for the previous year and describes the electric provider's compliance with par. (a) 2. and the electric provider's implementation plans for future compliance. Reports under this paragraph may include certifications from renewable and advanced energy suppliers regarding the sources and amounts of renewable and advanced energy supplied to the electric provider. The commission may specify the documentation that is required to be included with reports submitted under this paragraph. The commission may require that electric providers submit the reports in a proceeding, initiated by the commission under this section relating to the implementation of s. 1.12, or in a proceeding for preparing a strategic energy assessment under s. 196.491 (2). No later than 90 days after the commission's receipt of an electric provider's report, the commission shall inform the electric provider whether the electric provider is in compliance with par. (a) 2.

AB34,24 Section 24. 196.378 (2) (d) (intro.) of the statutes is amended to read:

AB34,7,21 196.378 (2) (d) (intro.) The commission shall allow an electric utility to recover from ratepayers the cost of providing total renewable and advanced energy to its retail customers in amounts that equal or exceed the percentages specified in par. (a). Subject to any approval of the commission that is necessary, an electric utility may recover costs under this paragraph by any of the following methods:

AB34,25 Section 25. 196.378 (2) (d) 2. of the statutes is amended to read:

AB34,7,24 196.378 (2) (d) 2. Establishing alternative price structures, including price structures under which customers pay a premium for renewable or advanced energy.

AB34,26 Section 26. 196.378 (2) (e) 2. of the statutes is amended to read:

AB34,8,6 196.378 (2) (e) 2. Notwithstanding reasonable efforts to protect against unreasonable increases in rates of the applicant's ratepayers or members, compliance with the deadline will result in unreasonable increases in rates of the applicant's ratepayers or members, including increases that are due to the discontinuation of federal renewable or advanced energy tax credits or other federal policies intended to reduce the acquisition costs of renewable or advanced energy.