AB649-ASA1, s. 146 7Section 146. 196.374 (7) (c) of the statutes is repealed.
AB649-ASA1, s. 147 8Section 147. 196.374 (7) (cm) of the statutes is created to read:
AB649-ASA1,67,119 196.374 (7) (cm) Cost recovery. The commission shall ensure in rate-making
10orders that a municipal utility recovers from its ratepayers the amounts the
11municipal utility spends to comply with this section.
AB649-ASA1, s. 148 12Section 148. 196.374 (7) (d) of the statutes is repealed.
AB649-ASA1, s. 149 13Section 149. 196.374 (7) (dm) of the statutes is created to read:
AB649-ASA1,67,1714 196.374 (7) (dm) Annual statements. Annually, a municipal utility or retail
15electric cooperative shall prepare a statement that describes the municipal utility's
16or retail electric cooperative's commitment to community programs and provide
17customers or members with a copy of the statement.
AB649-ASA1, s. 150 18Section 150. 196.374 (7) (e) (title) of the statutes is repealed and recreated to
19read:
AB649-ASA1,67,2020 196.374 (7) (e) (title) Audits and reports.
AB649-ASA1, s. 151 21Section 151. 196.374 (7) (e) 1. (intro.) of the statutes is amended to read:
AB649-ASA1,68,222 196.374 (7) (e) 1. (intro.) Annually, each municipal utility and retail electric
23cooperative that spends the fee that it charges under par. (a) for commitment to
24community programs under par. (b)
shall provide for an independent financial and
25program
audit of its the commitment to community programs that it administers or

1for which it contracts under par. (am)
and submit a report to the commission that
2describes all of the following:
AB649-ASA1, s. 152 3Section 152. 196.374 (7) (e) 1. a. of the statutes is amended to read:
AB649-ASA1,68,94 196.374 (7) (e) 1. a. An accounting of any fees charged to customers or members
5under par. (a) in the year in order to comply with the spending required under par.
6(am)
and an accounting of the expenditures in the year on commitment to community
7programs under par. (b), including any amounts included in the municipal utility's
8or retail electric cooperative's calculations under par. (c)
that the municipal utility
9or retail electric cooperative administers or for which it contracts under par. (am)
.
AB649-ASA1, s. 153 10Section 153. 196.374 (7) (e) 1. b. of the statutes is amended to read:
AB649-ASA1,68,1311 196.374 (7) (e) 1. b. A description of the commitment to community programs
12established by the municipal utility or retail electric cooperative in the year
13described in subd. 1. a.
AB649-ASA1, s. 154 14Section 154. 196.374 (7) (e) 1. c. of the statutes is amended to read:
AB649-ASA1,68,1715 196.374 (7) (e) 1. c. The effectiveness of the commitment to community
16programs described in subd. 1. a. in reducing demand for electricity by customers or
17members
regulated fuels.
AB649-ASA1, s. 155 18Section 155. 196.374 (7) (e) 1. e. of the statutes is created to read:
AB649-ASA1,68,2119 196.374 (7) (e) 1. e. An assessment, based on the program audit, of whether the
20commitment to community programs described in subd. 1. a. have met the goal for
21each regulated fuel for the year determined under sub. (3) (bn) 1. f.
AB649-ASA1, s. 156 22Section 156. 196.374 (8) of the statutes is renumbered 196.374 (8) (d) and
23amended to read:
AB649-ASA1,69,524 196.374 (8) (d) Exceptions. An energy utility that spends pays to a statewide
25programs contractor
the full amount required under sub. (3) (b) 2. (bw) 3. or 3g. in

1any year is considered to have satisfied its requirements under this section for that
2year. A municipal utility or retail electric cooperative that contracts with a statewide
3programs contractor under sub. (7) (am) 2. to achieve each of the utility's or
4cooperative's goals determined under sub. (3) (bn) 1. f. for a year is considered to have
5satisfied its requirements under this section for that year.
AB649-ASA1, s. 157 6Section 157. 196.374 (8) (a), (b) and (c) of the statutes are created to read:
AB649-ASA1,69,157 196.374 (8) (a) Determinations. 1. a. For each quadrennium following the
8proceeding under sub. (3) (bc), the commission shall determine the annual average
9reduction in demand for and use of each target fuel that is achieved under the
10statewide programs and achieved by or on behalf of each municipal utility and retail
11electric cooperative through commitment to community programs. Except as
12provided in subd. 1. b. and c., if the annual average reduction for a target fuel equals
13or exceeds the average of the goals determined under sub. (3) (bn) 1. e. or f. or 2. c.
14for the quadrennium, the commission shall conclude that the goal is achieved for the
15quadrennium.
AB649-ASA1,69,2116 b. If a municipal utility or retail electric cooperative enters into a contract
17under sub. (7) (am) 3. with a wholesale supplier and at least one other municipal
18utility or retail electric cooperative enters into a similar contract with the wholesale
19supplier, the commission shall determine whether to conclude that a goal is achieved
20for a regulated fuel for a year under subd. 1. a. based on the aggregate annual average
21reduction that results for that regulated fuel for that year under all of the contracts.
AB649-ASA1,70,222 c. If a wholesale supplier accepts assignment of a goal under sub. (7) (bg) for
23a regulated fuel for a year from more than one municipal utility or retail electric
24cooperative, the commission shall determine whether to conclude that the goal is
25achieved on an aggregate basis for all the municipal utilities and retail electric

1cooperatives for which the wholesale supplier has accepted the assignment, rather
2than on an individual basis for each municipal utility or retail electric cooperative.
AB649-ASA1,70,73 2. For each utility-administered, supplemental utility, and large energy
4customer program, the commission shall determine whether the program achieved
5the goals approved for the program under sub. (3) (c) 2. on average over the time
6period in which the program is in effect or another time period specified by the
7commission.
AB649-ASA1,70,118 (b) Reviews. 1. If the commission determines under par. (a) that a goal is not
9achieved, the commission shall investigate, as applicable, the statewide programs or
10the utility-administered, large energy customer, or commitment to community
11programs at issue, and determine the reasons for failure to achieve the goal.
AB649-ASA1,70,1812 2. If the commission determines under subd. 1. that a statewide programs
13contractor or person administering the utility-administered, large energy customer,
14or commitment to community program made a good faith effort to meet the goal and
15that the failure is due to factors outside the statewide program contractor's or
16person's control, the commission shall take those factors into account in modifying
17goals for and, where applicable, approving future programs administered by the
18statewide programs contractor or person.
AB649-ASA1,71,319 3. If the commission determines under subd. 1. that a statewide programs
20contractor or person administering the utility-administered, large energy customer,
21or commitment to community program did not make a good faith effort to achieve the
22goal or that the failure to achieve the goal was due to factors within the statewide
23program contractor's or person's control, the commission shall implement remedies
24according to the rules promulgated under par. (c). The commission may determine
25that a statewide programs contractor or person administering the

1utility-administered, large energy customer, or commitment to community program
2did not make a good faith effort to meet a goal only if the commission finds any of the
3following:
AB649-ASA1,71,54 a. The statewide programs contractor or person has repeatedly or grossly failed
5to meet a goal.
AB649-ASA1,71,96 b. For a commitment to community program, the municipal utility, retail
7electric cooperative, or wholesale supplier administering or contracting for the
8program did not determine an amount of funds under sub. (3) (br) 2. or (7) (bg) 1. that
9could reasonably be considered necessary to achieve the goal.
AB649-ASA1,71,1010 c. Any other condition specified by the commission by rule.
AB649-ASA1,71,1711 (c) Remedies. The commission shall promulgate rules specifying remedies to
12implement under par. (b) 3. that are in proportion to the magnitude of the failure to
13achieve a goal and the degree to which a statewide programs contractor or person
14administering the utility-administered, large energy customer, or commitment to
15community program did not make a good faith effort or did not control the factors
16that resulted in the failure to achieve the goal. The rules shall include all of the
17following remedies:
AB649-ASA1,71,2118 1. An order that a statewide programs contractor or person take corrective
19actions, which may include achieving the goal in a year or other time period specified
20by the commission, in addition to achieving any other goal under this section that
21applies to that year or time period.
AB649-ASA1,71,2222 2. For a goal under the statewide programs:
AB649-ASA1,71,2523 a. An order that the energy utilities invoke any provisions of a contract under
24sub. (2) (a) 1., or that a statewide programs contractor invoke any provisions of a
25subcontract, that impose monetary penalties for failure to achieve a goal.
AB649-ASA1,72,3
1b. An order that the energy utilities modify or terminate the contract with a
2statewide programs contractor under sub. (2) (a) 1. or an order that a statewide
3programs contractor modify or terminate any subcontract.
AB649-ASA1,72,54 3. For a goal under a utility-administered or large energy customer program,
5an order modifying or terminating the program.
AB649-ASA1,72,146 4. For a goal of a municipal utility or retail electric cooperative, an order
7requiring the municipal utility or retail electric cooperative to modify or terminate
8a contract with or assignment to a wholesale supplier under sub. (7) (am) 3. or (bg),
9or enter into a contract with a statewide programs contractor under sub. (7) (am) 2.,
10or an order requiring both. The commission may rescind an order requiring a
11municipal utility or retail electric cooperative to enter into a contract with a
12statewide programs contractor if the municipal utility or retail electric cooperative
13provides reasonable assurance that it will provide programs and set budgets
14reasonably designed to achieve the goal in the future.
AB649-ASA1,72,1515 5. Any other remedy specified by the commission.
AB649-ASA1, s. 158 16Section 158. 196.374 (9) and (10) of the statutes are created to read:
AB649-ASA1,72,2317 196.374 (9) Treatment of certain capital investments. (a) The commission
18may allow an energy utility to earn a return on capital invested by the energy utility
19under a utility-administered or supplemental utility program for energy
20conservation or efficiency equipment that is located on customer premises, including
21equipment owned by either the energy utility or a customer. The commission may
22make such an allowance only if the commission determines that the investment is
23prudent and a cost-effective means of advancing energy conservation or efficiency.
AB649-ASA1,73,3
1(b) The commission shall promulgate rules to implement this subsection,
2including rules specifying the energy conservation or efficiency equipment that
3qualifies for treatment under par. (a).
AB649-ASA1,73,10 4(10) Coordination with federal law. The commission shall minimize
5reporting and other compliance requirements on energy providers to the maximum
6extent allowed under this section for the purpose of coordination with any similar
7requirements under federal law. If the commission determines that statutory
8changes to this section are necessary to comply with this subsection, the commission
9shall submit a report recommending the statutory changes to the legislature in the
10manner described under s. 13.172 (3).
AB649-ASA1, s. 159 11Section 159. 196.377 (title) of the statutes is repealed.
AB649-ASA1, s. 160 12Section 160. 196.377 (1) of the statutes is renumbered 196.377.
AB649-ASA1, s. 161 13Section 161. 196.377 (2) of the statutes is repealed.
AB649-ASA1, s. 162 14Section 162. 196.378 (1) (intro.) and (ag) of the statutes are renumbered
15196.378 (1r) (intro.) and (ag), and 196.378 (1r) (ag), as renumbered, is amended to
16read:
AB649-ASA1,73,1817 196.378 (1r) (ag) "Baseline renewable percentage" means the average of an
18energy electric provider's renewable energy percentage for 2001, 2002, and 2003.
AB649-ASA1, s. 163 19Section 163. 196.378 (1) (am) of the statutes is repealed.
AB649-ASA1, s. 164 20Section 164. 196.378 (1) (ar) of the statutes is renumbered 196.378 (1r) (ar)
21and amended to read:
AB649-ASA1,74,222 196.378 (1r) (ar) "Biomass" means a resource that derives energy from wood
23or plant material or residue, biological waste, crops grown for use as a resource or
24landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or
25nonvegetation-based industrial, commercial or household waste, except that

1"biomass" includes refuse-derived fuel used for a renewable facility that was in
2service before January 1, 1998
has the meaning given in s. 196.374 (1) (am).
AB649-ASA1, s. 165 3Section 165. 196.378 (1) (b) of the statutes is repealed.
AB649-ASA1, s. 166 4Section 166. 196.378 (1) (c) and (d) of the statutes are renumbered 196.378 (1r)
5(c) and (d).
AB649-ASA1, s. 167 6Section 167. 196.378 (1) (fg) of the statutes is renumbered 196.378 (1r) (fg)
7(intro.) and amended to read:
AB649-ASA1,74,98 196.378 (1r) (fg) (intro.) "Renewable energy" means electricity derived from
9a
any of the following:
AB649-ASA1,74,14 101. A renewable resource. If the electricity is derived from the combustion of a
11renewable resource fuel and another fuel, the "renewable energy" calculated under
12this subdivision is the total amount of electricity that is derived multiplied by a ratio,
13of which the numerator is the energy content of the renewable resource fuel and the
14denominator is the energy content of the renewable resource fuel and the other fuel.
AB649-ASA1, s. 168 15Section 168. 196.378 (1) (fm) (intro.) of the statutes is renumbered 196.378
16(1r) (fm) (intro.).
AB649-ASA1, s. 169 17Section 169. 196.378 (1) (fm) 1. of the statutes is renumbered 196.378 (1r) (fm)
181. and amended to read:
AB649-ASA1,74,2019 196.378 (1r) (fm) 1. The electric provider's total renewable energy in that year
20that is allowed under the rules promulgated under sub. (3) (a) 5.
AB649-ASA1, s. 170 21Section 170. 196.378 (1) (fm) 2. of the statutes is renumbered 196.378 (1r) (fm)
222. and amended to read:
AB649-ASA1,74,2523 196.378 (1r) (fm) 2. The renewable resource portfolio credits created or
24purchased by the electric provider, if any,
that the electric provider elects to use in
25that year.
AB649-ASA1, s. 171
1Section 171. 196.378 (1) (fr) of the statutes is repealed.
AB649-ASA1, s. 172 2Section 172. 196.378 (1) (g) of the statutes is renumbered 196.378 (1r) (g).
AB649-ASA1, s. 173 3Section 173. 196.378 (1) (h) (intro.) of the statutes is renumbered 196.378 (1r)
4(h) and amended to read:
AB649-ASA1,75,65 196.378 (1r) (h) "Renewable resource" means any of the following: has the
6meaning given in s. 196.374 (1) (j).
AB649-ASA1, s. 174 7Section 174. 196.378 (1) (h) 1., 1m. and 2. of the statutes are repealed.
AB649-ASA1, s. 175 8Section 175. 196.378 (1) (i) of the statutes is renumbered 196.378 (1r) (i) and
9amended to read:
AB649-ASA1,75,1210 196.378 (1r) (i) "Renewable resource credit" means a renewable resource
11credit, as defined in s. 196.378 (1) (i), 2007 stats., or
a renewable resource credit
12calculated in accordance with rules promulgated created under sub. (3) (a) 1. and 2.
AB649-ASA1, s. 176 13Section 176. 196.378 (1) (j) of the statutes is repealed.
AB649-ASA1, s. 177 14Section 177. 196.378 (1) (k) of the statutes is renumbered 196.378 (1r) (k).
AB649-ASA1, s. 178 15Section 178. 196.378 (1) (o) of the statutes is repealed.
AB649-ASA1, s. 179 16Section 179. 196.378 (1) (p) of the statutes is renumbered 196.378 (1r) (p).
AB649-ASA1, s. 180 17Section 180. 196.378 (1g) of the statutes is created to read:
AB649-ASA1,75,1818 196.378 (1g) Legislative findings. The legislature finds all of the following:
AB649-ASA1,75,2319 (a) It is essential to the health and safety and economic well-being of
20Wisconsin that the state maintain a highly reliable electric system at all times that
21includes a diverse mix of resources both in terms of type and geographic location.
22Geographic diversity is particularly important for intermittent resources like wind
23power.
AB649-ASA1,76,324 (b) It is essential to the health and safety and economic well-being of Wisconsin
25that the state take actions to mitigate global climate change from emissions of

1greenhouse gasses. Central to such mitigation efforts is reducing reliance on
2electricity produced from fossil fuels through policies such as the renewable portfolio
3standard.
AB649-ASA1,76,104 (c) As of the effective date of this paragraph .... [LRB inserts date], the most
5abundant and affordable sources of electricity that can be used to comply with the
6renewable portfolio standard are wind resources in western Minnesota, the Dakotas,
7and Iowa. Exclusive reliance on these resources for compliance with the renewable
8portfolio standard will produce a significant increase in dependence on imported
9electricity with the associated congestion cost risks and not provide needed diversity
10for the state's renewable resource portfolio.
AB649-ASA1,76,1711 (d) To balance the competing imperatives of developing a renewable generation
12portfolio that is diverse as to geographic location and type of renewable resources in
13the portfolio, including smaller scale distributed resources, mitigating high
14transmission congestion cost risk, and reducing dependence on electricity produced
15from fossil fuels, it is essential that Wisconsin adopt a renewable portfolio standard
16that requires a part of the production of electricity from renewable resources in this
17state.
AB649-ASA1, s. 181 18Section 181. 196.378 (1r) (at) of the statutes is created to read:
AB649-ASA1,76,2019 196.378 (1r) (at) "Conservation certificate" means a certificate created under
20the rules promulgated under sub. (3m) (b).
AB649-ASA1, s. 182 21Section 182. 196.378 (1r) (de) of the statutes is created to read:
AB649-ASA1,77,222 196.378 (1r) (de) "In-state percentage" means, with respect to an electric
23provider, the portion of the electric provider's renewable energy percentage that is
24derived from electricity generated by renewable facilities located in this state,

1renewable resource credits separated from such electricity, and nonelectric energy
2credits.
AB649-ASA1, s. 183 3Section 183. 196.378 (1r) (dm) of the statutes is created to read:
AB649-ASA1,77,74 196.378 (1r) (dm) "Nonelectric energy" means any of the following types of
5energy or fuel produced or generated at a facility located in this state and placed in
6service on or after the effective date of this paragraph .... [LRB inserts date], but only
7if the energy or fuel displaces fossil fuel use in this state:
AB649-ASA1,77,158 1. The thermal output from a cogeneration production plant, as defined in s.
979.005 (1g). If the cogeneration production plant is fueled with a mixture of
10renewable resource fuel, synthetic fuel, or pelletized waste, and other fuel, the
11thermal output under this subdivision shall be the total thermal output of the
12cogeneration production plant multiplied by a ratio, of which the numerator is the
13energy content of the renewable resource fuel, synthetic fuel, or pelletized waste and
14the denominator is the energy content of the renewable resource fuel, synthetic fuel,
15or pelletized waste, and the other fuel.
AB649-ASA1,77,2116 2. The thermal output from a renewable resource-fueled or synthetic
17fuel-fueled boiler. If the boiler is fueled with a mixture of a renewable resource or
18synthetic fuel, and other fuel, the thermal output under this subdivision shall be the
19total thermal output of the boiler multiplied by a ratio, of which the numerator is the
20energy content of the renewable resource or synthetic fuel and the denominator is
21the energy content of the renewable resource or synthetic fuel, and the other fuel.
AB649-ASA1,77,2222 3. The thermal output of a geothermal system.
AB649-ASA1,77,2323 4. Biogas that is put into a natural gas transmission or distribution pipeline.
AB649-ASA1,77,2424 5. The thermal output of a solar water heating system.
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