The bill also does the following: 1) requires the PSC to periodically review its
orders and, as appropriate, revise the standardized agreements prescribed in the
orders; 2) specifies that a utility that purchases renewable energy as directed in an
order acquires the RRCs associated with the renewable energy, unless otherwise
specified by the parties; and 3) allows a utility and owner or operator of a renewable
facility to agree to renewable energy purchases on terms and conditions that differ
from those specified in an order.
The bill also requires an electric utility to purchase electricity generated from
renewable resources by certain customers at specified prices. The duty is limited to
customers whose electric generation capacity does not exceed two megawatts. For
customer-generated electricity that does not exceed the amount of electricity that
the electric utility sells to a customer, the utility must pay a price equal to the retail

electricity price the utility charges the customer. For customer-generated electricity
in excess of that amount, the electric utility must pay prices set by the PSC by order
that reflect certain wholesale prices. Payments must be calculated and made for
each billing cycle, but are subject to adjustment based on annual calculations. The
PSC must issue orders specifying requirements for the purchases, and the orders
must limit annual purchases to an amount not exceeding one percent of annual
electricity sales by all electric utilities.
Distributed generation facilities. Under current law, the PSC must
promulgate rules establishing standards for the connection of distributed generation
facilities to electric distribution facilities. Current law defines "distributed
generation facility" as an electric generating facility that: 1) satisfies certain location
requirements; and 2) has a capacity of no more than 15 megawatts. Under this bill,
an electric generating facility is a distributed generation facility if it satisfies the
location requirements and has a capacity of no more than 20 megawatts. The bill also
requires the PSC to review the service rules and practices of electric utilities to
determine whether they promote the development of distributed generation
facilities, and to report its findings to the legislature. In addition, the PSC must
promulgate rules to prohibit any service rules or practices that do not promote, or
that impede, the development of distributed generation facilities.
For further information see the state 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:
AB876,1 1Section 1. 196.025 (1) (c) 1. of the statutes is amended to read:
AB876,5,82 196.025 (1) (c) 1. In a proceeding in which an investor-owned electric public
3utility is a party, the commission shall not order or otherwise impose any renewable
4resource requirements on the investor-owned electric public utility if the
5commission has fulfilled all of its duties under s. 196.378 and the commission has
6informed the utility under s. 196.378 (2) (c) that, with respect to the most recent
7report submitted under s. 196.378 (2) (c), the utility is in compliance with the
8requirements of s. 196.378 (2) (a) 2. and (am) 2.
AB876,2 9Section 2. 196.378 (1) (ai) of the statutes is created to read:
AB876,6,210 196.378 (1) (ai) 1. Except as provided in subd. 2., "biofuel" means a fuel
11produced by the anaerobic fermentation of any material derived from any living

1organism, regardless of the degree or nature of processing or modification that the
2material has undergone.
AB876,6,43 2. "Biofuel" does not include a fuel produced by the anaerobic fermentation of
4any of the following:
AB876,6,55 a. Fossil fuels or any material derived from fossil fuels.
AB876,6,66 b. Mixed refuse.
AB876,3 7Section 3. 196.378 (1) (ak) of the statutes is created to read:
AB876,6,98 196.378 (1) (ak) "Biofuel credit" means a renewable resource credit that is
9based on electricity generated from a biofuel.
AB876,4 10Section 4. 196.378 (1) (df) of the statutes is created to read:
AB876,6,1211 196.378 (1) (df) "Hydroelectric renewable resource" means a renewable
12resource specified in par. (h) 1. m.
AB876,5 13Section 5. 196.378 (1) (dh) of the statutes is created to read:
AB876,6,1514 196.378 (1) (dh) "Integrated light pipe technology" means a lighting system
15that combines the following:
AB876,6,1616 1. A light pipe.
AB876,6,1917 2. An electric lighting system with controls that detect ambient light and adjust
18the amount of light produced by the system to maintain a preset level of lighting in
19an occupied space.
AB876,6 20Section 6. 196.378 (1) (h) 1. g. of the statutes is amended to read:
AB876,6,2121 196.378 (1) (h) 1. g. Biomass or biofuel.
AB876,7 22Section 7. 196.378 (1) (i) of the statutes is amended to read:
AB876,6,2523 196.378 (1) (i) "Renewable resource credit" means a credit calculated in
24accordance with sub. (3) (a) 1f. or the rules promulgated under sub. (3) (a) 1. 1d., 1m.,
25and 2.
AB876,8
1Section 8. 196.378 (2) (a) 2. d. of the statutes, as affected by 2013 Wisconsin
2Act .... (Assembly Bill 594), is amended to read:
AB876,7,53 196.378 (2) (a) 2. d. Except as provided in subd. 2. f., for For the year 2015, each
4electric provider shall increase its renewable energy percentage so that it is at least
56 percentage points above the electric provider's baseline renewable percentage.
AB876,9 6Section 9. 196.378 (2) (a) 2. e. of the statutes, as affected by 2013 Wisconsin
7Act .... (Assembly Bill 594), is amended to read:
AB876,7,118 196.378 (2) (a) 2. e. Except as provided in subd. 2. f., for each year after 2015
9For the years 2016, 2017, 2018, and 2019, each electric provider may not decrease
10its renewable energy percentage below   the electric provider's renewable energy
11percentage required under subd. 2. d.
AB876,10 12Section 10. 196.378 (2) (a) 2. f. of the statutes, as created by 2013 Wisconsin
13Act .... (Assembly Bill 594), is repealed.
AB876,11 14Section 11. 196.378 (2) (a) 2. g., h., i. and j. of the statutes are created to read:
AB876,7,1715 196.378 (2) (a) 2. g. For the year 2020, each electric provider shall increase its
16renewable energy percentage so that it is at least 16 percentage points above the
17electric provider's baseline renewable percentage.
AB876,7,2018 h. For the years 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, and 2029, each
19electric provider may not decrease its renewable energy percentage below the
20electric provider's renewable energy percentage required under subd. 2. g.
AB876,7,2321 i. For the year 2030, each electric provider shall increase its renewable energy
22percentage so that it is at least 26 percentage points above the electric provider's
23baseline renewable percentage.
AB876,8,3
1j. For each year after 2030, each electric provider may not decrease its
2renewable energy percentage below the electric provider's renewable energy
3percentage required under subd. 2. i.
AB876,12 4Section 12. 196.378 (2) (am) of the statutes is created to read:
AB876,8,125 196.378 (2) (am) 1. No later than June 1, 2031, the commission shall prepare
6a report stating whether, by December 31, 2030, the state has met a goal of 0.5
7percent of all electric energy consumed in the state being renewable energy derived
8from biofuels. If the goal has not been achieved, the report shall indicate why the goal
9was not achieved and how it may be achieved, and the commission shall prepare
10similar reports biennially thereafter until the goal is achieved. The commission shall
11submit reports under this subdivision to the governor and the chief clerk of each
12house of the legislature for distribution to the legislature under s. 13.172 (2).
AB876,8,1513 2. Except as provided in pars. (e), (f), and (g), each electric provider shall ensure
14that, of the electricity it sells in a year to retail customers or members, the percentage
15that is derived from biofuels is not less than the following:
AB876,8,1716 a. For the years 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, and 2029,
170.3 percent.
AB876,8,1818 b. For the year 2030 and each year thereafter, 0.5 percent.
AB876,13 19Section 13. 196.378 (2) (b) (intro.) of the statutes is amended to read:
AB876,8,2120 196.378 (2) (b) (intro.) For purposes of determining compliance with par. (a)
21pars. (a) 2. and (am) 2.:
AB876,14 22Section 14. 196.378 (2) (b) 1t. of the statutes is created to read:
AB876,8,2323 196.378 (2) (b) 1t. Notwithstanding subds. 1m. and 1o.:
AB876,9,3
1a. An electric provider may not, in a year, count electricity derived from
2hydroelectric renewable resources for more than 25 percent of the renewable energy
3percentage required under par. (a) 2. g. or h.
AB876,9,64 b. An electric provider may not, in a year, count electricity derived from
5hydroelectric renewable resources for more than 20 percent of the renewable energy
6percentage required under par. (a) 2. i. or j.
AB876,15 7Section 15. 196.378 (2) (b) 5. of the statutes is amended to read:
AB876,9,138 196.378 (2) (b) 5. An electric provider that purchases renewable energy from
9a renewable energy supplier may use an allocated share of the renewable energy sold
10by the renewable energy supplier to comply with a requirement under par. (a) 2. or
11(am) 2.
or to create a credit under sub. (3) (a), provided that the cost of the renewable
12energy is included in the price the electric provider paid the renewable energy
13supplier.
AB876,16 14Section 16. 196.378 (2) (bm) of the statutes is renumbered 196.378 (2) (bm)
151. and amended to read:
AB876,9,2116 196.378 (2) (bm) 1. Each electric provider shall annually retire renewable
17resource credits sufficient to satisfy the electric provider's renewable energy
18percentage required under par. (a) 2. An electric provider may retire biofuel credits
19under this subdivision, except that an electric provider may not include biofuel
20credits it retires under subd. 2. in the renewable resource credits it retires under this
21subdivision.
AB876,17 22Section 17. 196.378 (2) (bm) 2. of the statutes is created to read:
AB876,9,2423 196.378 (2) (bm) 2. Each electric provider shall annually retire biofuel credits
24sufficient to satisfy the electric provider's obligation under par. (am) 2.
AB876,18 25Section 18. 196.378 (2) (c) of the statutes is amended to read:
AB876,10,15
1196.378 (2) (c) No later than April 15 annually, or another annual date specified
2by the commission by rule, an electric provider shall submit a report to the
3commission that identifies the electric provider's renewable energy percentage for
4the previous year and describes the electric provider's compliance with par. (a) 2.
5pars. (a) 2. and (am) 2. and the electric provider's implementation plans for future
6compliance. Reports under this paragraph may include certifications from
7renewable energy suppliers regarding the sources and amounts of renewable energy
8supplied to the electric provider. The commission may specify the documentation
9that is required to be included with reports submitted under this paragraph. The
10commission may require that electric providers submit the reports in a proceeding,
11initiated by the commission under this section relating to the implementation of s.
121.12, or in a proceeding for preparing a strategic energy assessment under s. 196.491
13(2). No later than 90 days after the commission's receipt of an electric provider's
14report, the commission shall inform the electric provider whether the electric
15provider is in compliance with par. (a) 2. pars. (a) 2. and (am) 2.
AB876,19 16Section 19. 196.378 (2) (d) (intro.) of the statutes is amended to read:
AB876,10,2117 196.378 (2) (d) (intro.) The commission shall allow an electric utility to recover
18from ratepayers the cost of providing total renewable energy to its retail customers
19in amounts that equal or exceed the percentages specified in par. (a). pars. (a) 2. and
20(am) 2.
Subject to any approval of the commission that is necessary, an electric utility
21may recover costs under this paragraph by any of the following methods:
AB876,20 22Section 20. 196.378 (2) (e) (intro.) of the statutes is amended to read:
AB876,11,423 196.378 (2) (e) (intro.) An electric provider, or a wholesale supplier for its
24members, may request that the commission grant a delay for complying with a
25deadline specified in par. (a) 2. or (am) 2. The commission shall hold a hearing on

1the request and, if requested by the electric provider or wholesale supplier, treat the
2matter as a contested case. The commission shall grant a delay if the commission
3determines that the applicant has demonstrated good faith efforts to comply with the
4deadline and that any of the following applies:
AB876,21 5Section 21. 196.378 (2) (f) (intro.) of the statutes is amended to read:
AB876,11,146 196.378 (2) (f) (intro.) A wholesale electric cooperative for its members or a
7municipal electric company for its members may delay compliance with a deadline
8specified in par. (a) 2. or (am) 2. for any reason specified in par. (e) 1. to 4. A wholesale
9electric cooperative or a municipal electric company that delays compliance with a
10deadline specified in par. (a) 2. or (am) 2. shall inform the commission of the delay
11and the reason for the delay, and shall submit information to the commission
12demonstrating that, notwithstanding good faith efforts by the wholesale electric
13cooperative or municipal electric company and its members, the members cannot
14meet the deadline for the stated reason.
AB876,22 15Section 22. 196.378 (2) (g) 2. of the statutes is amended to read:
AB876,11,2316 196.378 (2) (g) 2. An energy consumer advocacy group may request that the
17commission grant to an electric provider that serves one or more members of the
18group a delay for complying with a deadline specified in par. (a) 2. or (am) 2. The
19commission shall hold a hearing on the request and, if requested by the energy
20consumer advocacy group, treat the matter as a contested case. The commission
21shall grant a delay if the commission determines that the utility has demonstrated
22good faith efforts to comply with the deadline and that any of the conditions in par.
23(e) 1. to 4. apply.
AB876,23 24Section 23. 196.378 (3) (a) 1. of the statutes is renumbered 196.378 (3) (a) 1d.
25and amended to read:
AB876,12,16
1196.378 (3) (a) 1d. Each Except as provided in subd. 1f., each megawatt hour
2of an electric provider's total renewable energy creates one renewable resource credit
3for the electric provider. Subject to subd. 2., an electric provider that exceeds its
4renewable energy percentage required under sub. (2) (a) 2. may, in the applicable
5year, bank any excess renewable resource credits or any portion of any excess
6renewable resource credit for use in a subsequent year or sell any excess renewable
7resource credits or any portion of any excess renewable resource credit to any other
8electric provider at any negotiated price. An electric provider that creates or
9purchases a renewable resource credit or portion may use the credit or portion, as
10provided under par. (c), to establish compliance with sub. (2) (a) 2. or (am) 2. The
11commission shall promulgate rules that establish requirements for the creation and
12use of a renewable resource credit created on or after January 1, 2004, including
13calculating the amount of a renewable resource credit, and for the tracking of
14renewable resource credits by a regional renewable resource credit tracking system.
15The rules shall specify the manner for aggregating or allocating credits under this
16subdivision or sub. (2) (b) 4. or 5.
AB876,24 17Section 24. 196.378 (3) (a) 1b. of the statutes is created to read:
AB876,12,1818 196.378 (3) (a) 1b. The legislature finds all of the following:
AB876,12,2019 a.   It is essential to the health and safety and economic well-being of Wisconsin
20that the state maintain a highly reliable electric system at all times.
AB876,12,2221 b. Historically, Wisconsin has relied on imports of electricity from other states
22for about 15 percent of the state's electricity needs.
AB876,13,223 c. It is essential to the health and safety and economic well-being of Wisconsin
24that the state take actions to mitigate global climate change from emissions of
25greenhouse gasses. Central to such mitigation efforts is reducing reliance on

1electricity produced from fossil fuels through policies such as the requirements
2under sub. (2) (a) 2.
AB876,13,63 d. To balance the competing imperatives of maintaining the reliability of the
4electric system and reducing dependence on electricity produced from fossil fuels, it
5is essential that Wisconsin encourages the production of electricity from renewable
6facilities in this state under subd. 1f. c.
AB876,25 7Section 25. 196.378 (3) (a) 1f. of the statutes is created to read:
AB876,13,108 196.378 (3) (a) 1f. Each megawatt hour of electricity of an electric provider's
9total renewable energy creates 2 renewable resource credits for the electric provider
10if all of the following apply:
AB876,13,1411 a. The facility that generated the electricity commenced operation prior to
12January 1, 2020, and is either a cogeneration production plant, as defined in s. 79.005
13(1g), or a facility that generates electricity from direct radiant energy received from
14the sun.
AB876,13,1915 b. If the electric provider is an electric utility that purchased the electricity, the
16terms and conditions of the purchase conformed with the standard purchase terms
17and conditions specified in the order directed to the electric utility under s. 196.379
18(3) (a) that was in effect at the time of the purchase or the terms and conditions of
19the purchase were mutually agreed as provided under s. 196.379 (3) (b) 3.
AB876,13,2020 c. The facility that generated the electricity is located in this state.
AB876,26 21Section 26. 196.378 (3) (a) 1g. of the statutes is created to read:
AB876,13,2522 196.378 (3) (a) 1g. An electric provider that exceeds a percentage required
23under sub. (2) (am) 2. may, in the applicable year, bank any excess biofuel credits or
24any portion of any excess biofuel credit, distinct from other renewable resource
25credits.
AB876,27
1Section 27. 196.378 (3) (a) 1m. of the statutes is amended to read:
AB876,14,192 196.378 (3) (a) 1m. The commission shall promulgate rules that allow an
3electric provider or customer or member of an electric provider to create a renewable
4resource credit based on use in a year by the electric provider, customer, or member
5of solar energy, including solar water heating and direct solar applications such as
6solar
space or water heating; integrated light pipe technology; wind energy;
7hydroelectric energy; geothermal energy; biomass; biogas; synthetic gas created by
8the plasma gasification of waste; densified fuel pellets described in sub. (1) (h) 1. i.;
9or fuel described in sub. (1) (h) 1. j.; but only if the use displaces the electric provider's,
10customer's, or member's use of electricity that is derived from conventional
11resources, and only if the displacement is verifiable and measurable, as determined
12by the commission. The rules shall allow an electric provider, customer, or member
13to create a renewable resource credit based on 100 percent of the amount of the
14displacement. The rules may not allow an electric provider to create renewable
15resource credits under this subdivision based on renewable energy upon which
16renewable resource credits are created under subd. 1. 1d. The rules may also not
17allow an electric provider to create renewable resource credits under this subdivision
18based on hydroelectric energy that is not eligible for creating renewable resource
19credits under subd. 1. 1d.
AB876,28 20Section 28. 196.378 (3) (b) of the statutes is amended to read:
AB876,14,2221 196.378 (3) (b) The commission may promulgate rules that establish
22requirements and procedures for a sale under par. (a) 1. 1d.
AB876,29 23Section 29. 196.378 (3) (c) of the statutes is amended to read:
AB876,15,524 196.378 (3) (c) A renewable resource credit created under s. 196.378 (3) (a),
252003 stats., may not be used after December 31, 2011. A renewable resource credit

1created under par. (a) 1., 1d., 1f., 1m., or 2. may not be used after the 4th year after
2the year in which the credit is created, except the commission may promulgate rules
3specifying a different period of time if the commission determines that such period
4is necessary for consistency with any regional renewable resource credit trading
5program that applies in this state.
AB876,30 6Section 30. 196.378 (4m) (a) of the statutes is amended to read:
AB876,15,137 196.378 (4m) (a) The commission may not impose on an electric provider any
8requirement that increases the electric provider's renewable energy percentage
9beyond that required under sub. (2) (a) 2. If an electric provider is in compliance with
10the requirements of sub. (2) (a) 2. and (am) 2., the commission may not require the
11electric provider to undertake, administer, or fund any other renewable energy
12program. This paragraph does not limit the authority of the commission to enforce
13an electric provider's obligations under s. 196.374.
AB876,31 14Section 31. 196.379 of the statutes is created to read:
AB876,15,16 15196.379 Electric utility purchases of renewable energy. (1) Definitions.
16In this section:
AB876,15,1717 (a) "Electric utility" has the meaning given in s. 196.378 (1) (d).
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