AB876: Bill Text

AB876,10,21 196.378 (2) (d) (intro.) The commission shall allow an electric utility to recover from ratepayers the cost of providing total renewable energy to its retail customers in amounts that equal or exceed the percentages specified in par. (a). pars. (a) 2. and (am) 2. 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:

AB876,20 Section 20. 196.378 (2) (e) (intro.) of the statutes is amended to read:

AB876,11,4 196.378 (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. or (am) 2. 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:

AB876,21 Section 21. 196.378 (2) (f) (intro.) of the statutes is amended to read:

AB876,11,14 196.378 (2) (f) (intro.) A wholesale electric cooperative for its members or a municipal electric company for its members may delay compliance with a deadline specified in par. (a) 2. or (am) 2. for any reason specified in par. (e) 1. to 4. A wholesale electric cooperative or a municipal electric company that delays compliance with a deadline specified in par. (a) 2. or (am) 2. 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 and its members, the members cannot meet the deadline for the stated reason.

AB876,22 Section 22. 196.378 (2) (g) 2. of the statutes is amended to read:

AB876,11,23 196.378 (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. or (am) 2. 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.

AB876,23 Section 23. 196.378 (3) (a) 1. of the statutes is renumbered 196.378 (3) (a) 1d. and amended to read:

AB876,12,16 196.378 (3) (a) 1d. Each Except as provided in subd. 1f., each megawatt hour of an electric provider's total renewable energy creates one renewable resource credit for the electric provider. Subject to subd. 2., an electric provider that exceeds its renewable energy percentage required under sub. (2) (a) 2. may, in the applicable year, bank any excess renewable resource credits or any portion of any excess renewable resource credit for use in a subsequent year or sell any excess renewable resource credits or any portion of any excess renewable resource credit to any other electric provider at any negotiated price. An electric provider that creates or purchases a renewable resource credit or portion may use the credit or portion, as provided under par. (c), to establish compliance with sub. (2) (a) 2. or (am) 2. The commission shall promulgate rules that establish requirements for the creation and use of a renewable resource credit created on or after January 1, 2004, including calculating the amount of a renewable resource credit, and for the tracking of renewable resource credits by a regional renewable resource credit tracking system. The rules shall specify the manner for aggregating or allocating credits under this subdivision or sub. (2) (b) 4. or 5.

AB876,24 Section 24. 196.378 (3) (a) 1b. of the statutes is created to read:

AB876,12,18 196.378 (3) (a) 1b. The legislature finds all of the following:

AB876,12,20 a.   It is essential to the health and safety and economic well-being of Wisconsin that the state maintain a highly reliable electric system at all times.

AB876,12,22 b. Historically, Wisconsin has relied on imports of electricity from other states for about 15 percent of the state's electricity needs.

AB876,13,2 c. It is essential to the health and safety and economic well-being of Wisconsin that the state take actions to mitigate global climate change from emissions of greenhouse gasses. Central to such mitigation efforts is reducing reliance on electricity produced from fossil fuels through policies such as the requirements under sub. (2) (a) 2.

AB876,13,6 d. To balance the competing imperatives of maintaining the reliability of the electric system and reducing dependence on electricity produced from fossil fuels, it is essential that Wisconsin encourages the production of electricity from renewable facilities in this state under subd. 1f. c.

AB876,25 Section 25. 196.378 (3) (a) 1f. of the statutes is created to read:

AB876,13,10 196.378 (3) (a) 1f. Each megawatt hour of electricity of an electric provider's total renewable energy creates 2 renewable resource credits for the electric provider if all of the following apply:

AB876,13,14 a. The facility that generated the electricity commenced operation prior to January 1, 2020, and is either a cogeneration production plant, as defined in s. 79.005 (1g), or a facility that generates electricity from direct radiant energy received from the sun.

AB876,13,19 b. If the electric provider is an electric utility that purchased the electricity, the terms and conditions of the purchase conformed with the standard purchase terms and conditions specified in the order directed to the electric utility under s. 196.379 (3) (a) that was in effect at the time of the purchase or the terms and conditions of the purchase were mutually agreed as provided under s. 196.379 (3) (b) 3.

AB876,13,20 c. The facility that generated the electricity is located in this state.

AB876,26 Section 26. 196.378 (3) (a) 1g. of the statutes is created to read:

AB876,13,25 196.378 (3) (a) 1g. An electric provider that exceeds a percentage required under sub. (2) (am) 2. may, in the applicable year, bank any excess biofuel credits or any portion of any excess biofuel credit, distinct from other renewable resource credits.

AB876,27 Section 27. 196.378 (3) (a) 1m. of the statutes is amended to read:

AB876,14,19 196.378 (3) (a) 1m. The commission shall promulgate rules that allow an electric provider or customer or member of an electric provider to create a renewable resource credit based on use in a year by the electric provider, customer, or member of solar energy, including solar water heating and direct solar applications such as solar space or water heating; integrated light pipe technology; wind energy; hydroelectric energy; geothermal energy; biomass; biogas; synthetic gas created by the plasma gasification of waste; densified fuel pellets described in sub. (1) (h) 1. i.; or fuel described in sub. (1) (h) 1. j.; but only if the use displaces the electric provider's, customer's, or member's use of electricity that is derived from conventional resources, and only if the displacement is verifiable and measurable, as determined by the commission. The rules shall allow an electric provider, customer, or member to create a renewable resource credit based on 100 percent of the amount of the displacement. The rules may not allow an electric provider to create renewable resource credits under this subdivision based on renewable energy upon which renewable resource credits are created under subd. 1. 1d. The rules may also not allow an electric provider to create renewable resource credits under this subdivision based on hydroelectric energy that is not eligible for creating renewable resource credits under subd. 1. 1d.

AB876,28 Section 28. 196.378 (3) (b) of the statutes is amended to read:

AB876,14,22 196.378 (3) (b) The commission may promulgate rules that establish requirements and procedures for a sale under par. (a) 1. 1d.

AB876,29 Section 29. 196.378 (3) (c) of the statutes is amended to read:

AB876,15,5 196.378 (3) (c) A renewable resource credit created under s. 196.378 (3) (a), 2003 stats., may not be used after December 31, 2011. A renewable resource credit created under par. (a) 1., 1d., 1f., 1m., or 2. may not be used after the 4th year after the year in which the credit is created, except the commission may promulgate rules specifying a different period of time if the commission determines that such period is necessary for consistency with any regional renewable resource credit trading program that applies in this state.

AB876,30 Section 30. 196.378 (4m) (a) of the statutes is amended to read:

AB876,15,13 196.378 (4m) (a) The commission may not impose on an electric provider any requirement that increases the electric provider's renewable energy percentage beyond that required under sub. (2) (a) 2. If an electric provider is in compliance with the requirements of sub. (2) (a) 2. and (am) 2., 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.

AB876,31 Section 31. 196.379 of the statutes is created to read:

AB876,15,16 196.379 Electric utility purchases of renewable energy. (1) Definitions. In this section:

AB876,15,17 (a) "Electric utility" has the meaning given in s. 196.378 (1) (d).

AB876,15,19 (b) "Large electric utility" means an electric utility that had retail electric sales in 2013 of 2,500,000 megawatt hours or more.

AB876,15,20 (c) "Renewable energy" means electricity derived from a renewable facility.

AB876,15,22 (d) "Renewable facility" means an electric generating facility that is a small-scale facility and that derives energy from any of the following:

AB876,15,23 1. Photovoltaic energy.

AB876,15,24 2. Wind power.

AB876,15,25 3. Gas made from a renewable resource.

AB876,16,1 4. Any other renewable resource specified by rule by the commission.

AB876,16,2 (e) "Renewable resource" has the meaning given in s. 196.374 (1) (j).

AB876,16,3 (f) "Renewable resource credit" has the meaning given in s. 196.378 (1) (i).

AB876,16,5 (g) "Small electric utility" means an electric utility that had retail electric sales in 2013 of less than 2,500,000 megawatt hours.

AB876,16,8 (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.

AB876,16,13 (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.

AB876,16,17 (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.

AB876,16,20 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:

AB876,16,21 a. Exempt the large electric utility from the requirement under par. (a).

AB876,16,24 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.

AB876,17,5 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.

AB876,17,8 (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:

AB876,17,10 1. The price paid for renewable energy, based on the commission's consideration of all of the following:

AB876,17,11 a. The cost of producing renewable energy at the type of renewable facility.

AB876,17,12 b. A reasonable rate of return on investment for the type of renewable facility.

AB876,17,14 c. The value of any renewable resource credits acquired by the electric utility under sub. (6) with respect to the renewable facility.

AB876,17,16 d. State and federal financial incentives, including production tax credits, that are available to owners or operators of the type of renewable facility.

AB876,17,19 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.

AB876,17,21 3. A maximum limit on the generating capacity for the type of renewable facility.

AB876,17,23 (d) Other conditions. An order under par. (a) directed to an electric utility may include any of the following conditions:

AB876,17,25 1. Requirements for adjusting the standard purchase terms under par. (c) based on changes in operating costs for a type of renewable facility.

AB876,18,2 2.   Different prices for renewable energy generated at renewable facilities of the same type that have different generating capacities.

AB876,18,3 3. Other conditions specified by the commission.

AB876,18,8 (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.

AB876,18,12 (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:

AB876,18,14 (a) The number of renewable facilities from which the electric utility must purchase renewable energy.

AB876,18,16 (b) The total installed generating capacity of the renewable facilities from which the electric utility must purchase renewable energy.

AB876,18,18 (c) The total amount of renewable energy that the electric utility must purchase.

AB876,18,24 (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.

AB876,19,4 (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.

AB876,19,6 (7) Rules. The commission shall promulgate rules that define "small-scale facility" for purposes of sub. (1) (d).

AB876,32 Section 32. 196.491 (title) of the statutes is amended to read:

AB876,19,9 196.491 (title) Strategic energy assessment; electric generating facilities and transmission lines; customer electric generation.

AB876,33 Section 33. 196.491 (6) of the statutes is amended to read:

AB876,19,14 196.491 (6) Waiver. The commission may waive compliance with any requirement of this section subs. (2) to (5) to the extent necessary to restore service which has been substantially interrupted by a natural catastrophe, accident, sabotage or act of God.

AB876,34 Section 34. 196.491 (7) of the statutes is created to read:

AB876,19,16 196.491 (7) Customer electric generation. (a) In this subsection:

AB876,19,18 1. "Customer" means a customer whose electric generation capacity does not exceed 2 megawatts.

AB876,19,19 2. "Electric utility" does not include a cooperative association.

AB876,19,20 3. "Renewable resource" has the meaning given in s. 196.374 (1) (j).

AB876,19,22 (b) An electric utility shall purchase electricity generated from renewable resources by a customer at the following prices:

AB876,19,25 1.   For electricity that does not exceed the amount of electricity that the electric utility sells to the customer, at a price equal to the retail price the electric utility charges the customer for electricity.

AB876,20,5 2.   For electricity in excess of the amount of electricity that the electric utility sells to the customer, at prices set by the commission by order that reflect peak and off-peak wholesale prices in markets administered by the Midcontinent Independent System Operator, Inc. The commission shall issue orders setting prices under this subdivision on at least an annual basis.

AB876,20,7 (c) An electric utility shall pay a customer for electricity purchases required under par. (b) as follows:

AB876,20,10 1.   Payments shall be based on the total amount of electricity the electric utility purchases from the customer and the total amount of electricity the electric utility sells to the customer in a year.

AB876,20,13 2. In each billing cycle in which the electric utility purchases electricity from the customer, the electric utility shall pay the customer based on the amount of electricity bought and sold in that billing cycle.

AB876,20,16 3.   Annually, the electric utility shall adjust the amount paid to the customer to correct any difference in the amount due to the customer on the basis of billing cycle calculations rather than an annual calculation.

AB876,20,20 (d) The commission shall issue orders specifying requirements for electric utilities to implement the duties under this subsection. The orders shall limit annual purchases under this subsection to an amount that does not exceed one percent of annual electricity sales by all electric utilities.

AB876,35 Section 35. 196.496 (1) of the statutes is amended to read:

AB876,20,25 196.496 (1) Definition. In this section, "distributed generation facility" means a facility for the generation of electricity with a capacity of no more than 15 20 megawatts that is located near the point where the electricity will be used or is in a location that will support the functioning of the electric power distribution grid.