Amendment SSA2-SB185

LRBs0117/2

MDK/MES/RNK/EVM:kjf/jld/cjs:ph

2009 - 2010 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 2, TO 2009 SENATE BILL 185

September 14, 2009 - Offered by Senator Plale.

SB185-SSA2,1,5 An Act to renumber and amend 66.0401 (1); to amend 66.0401 (2) and 66.0403 (1) (m); to repeal and recreate 196.378 (4) (title); and to create 15.797, 23.39, 66.0401 (1e), 66.0401 (3), 66.0401 (4), 66.0401 (5), 66.0401 (6), 196.378 (4g) and 196.491 (3) (dg) of the statutes; relating to: regulation of wind energy systems and granting rule-making authority.

Analysis by the Legislative Reference Bureau

Under current law, a city, village, town, or county (political subdivision) may not place any restrictions on the installation or use of an energy system (a solar energy system or a wind energy system) unless the restriction is for health or safety reasons, does not significantly increase the cost of the system or decrease its efficiency, or allows for an alternative comparable system. Current law defines "wind energy system" as equipment that converts and then stores or transfers energy from the wind into usable forms of energy.

This substitute amendment requires the Public Service Commission (PSC) to promulgate rules establishing common standards for political subdivisions to regulate the construction and operation of wind energy systems. The substitute amendment also revises the definition of "wind energy system" to include associated facilities of the equipment specified under current law. The PSC's rules must specify the restrictions a political subdivision may impose on the installation or use of such a system. The subject matter of the rules must include the following: 1) decommissioning, which is defined as removing wind turbines, buildings, cables, electrical components, roads, and other associated facilities that are located at the site of a wind energy system, as well as restoring the site; and 2) setback requirements that reasonably protect against health effects, including those from noise and shadow flicker, that are associated with wind energy systems. The bill also allows the rules to include subjects such as visual appearance, setback distances, decommissioning, shadow flicker, electrical connections to the power grid, and interference with radio, telephone, or television signals. In addition, the PSC must promulgate rules requiring an owner of a wind energy system with a nominal operating capacity of at least one megawatt to maintain proof of financial responsibility for decommissioning the wind energy system. The PSC must also promulgate rules specifying requirements and procedures for a political subdivision to enforce such restrictions.

If a political subdivision chooses to regulate such systems, its ordinances may not be more restrictive than the PSC rules. The substitute amendment also specifies various standards, procedures for applicants, and approval timelines for political subdivisions that must be contained in a political subdivision's ordinance regulating the systems.

The substitute amendment prohibits a political subdivision from prohibiting or restricting any person from conducting tests to determine the suitability of a site for the possible placement of a wind energy system, although the political subdivision may petition the PSC to impose reasonable restrictions on the testing.

The substitute amendment provides that any person who is aggrieved by a political subdivision's decision or enforcement action may seek review by the PSC. If the PSC determines that the political subdivision's decision or enforcement action does not comply with the agency's rules or is unreasonable, it must issue a superseding decision and order an appropriate remedy. The PSC's decision or order may be appealed to circuit court.

The substitute amendment specifies that if a county enacts an ordinance relating to the construction or operation of a wind energy system, as provided by the substitute amendment, the county ordinance applies only in the unincorporated parts of the county, except that if a town enacts a similar ordinance, the more restrictive terms of the two ordinances apply to the town.

The substitute amendment also creates a 15-member wind siting council consisting of two wind energy system representatives; one town representative; one county representative; two energy industry representatives; two environmental group representatives; two realtor representatives; two landowners living adjacent to or in the vicinity of a wind energy system; two public members; and one University of Wisconsin System faculty member with expertise regarding the health impacts of wind energy systems. The PSC appoints the members for three-year terms. The substitute amendment requires the PSC to obtain the advice of the council in promulgating rules under the substitute amendment. In addition, the council must survey peer-reviewed scientific research on the health impacts of wind energy systems, as well as national and state regulatory developments regarding the siting of wind energy systems, and submit a report to the legislature every five years describing the research and developments and recommending legislation based on the research and developments.

Finally, the substitute amendment does not affect a provision under current law that exempts certain electric generating facilities from local ordinances. Under current law, a person may not construct an electric generating facility with a nominal operating capacity of 100 megawatts or more unless the PSC grants a certificate of public convenience and necessity (CPCN) to the person. If the PSC has granted a CPCN to such a facility, and if installation or utilization of the facility is precluded or inhibited by a local ordinance, current law provides that the installation and utilization of the facility may nevertheless proceed. Because this substitute amendment does not affect that provision, the authority of a political subdivision to regulate a wind energy system under the substitute amendment is limited to those wind energy systems with a nominal operating capacity of less than 100 megawatts. However, the substitute amendment requires the PSC to consider the restrictions specified in the rules described above when the PSC determines whether to grant a CPCN to a wind energy system with a nominal operating capacity of 100 megawatts or more.

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

SB185-SSA2, s. 1 Section 1. 15.797 of the statutes is created to read:

SB185-SSA2,3,3 15.797 Same; council. (1) Wind siting council. (a) In this subsection, "wind energy system" has the meaning given in s. 66.0403 (1) (m).

SB185-SSA2,3,6 (b) There is created in the public service commission a wind siting council that consists of the following members appointed by the public service commission for 3-year terms:

SB185-SSA2,3,7 1. Two members representing wind energy system developers.

SB185-SSA2,3,8 2. One member representing towns and one member representing counties.

SB185-SSA2,3,9 3. Two members representing the energy industry.

SB185-SSA2,3,10 4. Two members representing environmental groups.

SB185-SSA2,3,11 5. Two members representing realtors.

SB185-SSA2,4,3 6. Two members who are landowners living adjacent to or in the vicinity of a wind energy system and who have not received compensation by or on behalf of owners, operators, or developers of wind energy systems.

SB185-SSA2,4,4 7. Two public members.

SB185-SSA2,4,6 8. One member who is a University of Wisconsin System faculty member with expertise regarding the health impacts of wind energy systems.

SB185-SSA2, s. 2 Section 2. 23.39 of the statutes is created to read:

SB185-SSA2,4,12 23.39 Placement of wind turbines. The department shall identify areas in this state where wind turbines, if placed in those areas, may have a significant adverse effect on bat and migratory bird populations. The department shall maintain an Internet Web site that provides this information to the public and that includes a map of the identified areas.

SB185-SSA2, s. 3 Section 3. 66.0401 (1) of the statutes is renumbered 66.0401 (1m), and 66.0401 (1m) (intro.), as renumbered, is amended to read:

SB185-SSA2,4,22 66.0401 (1m) Authority to restrict systems limited. (intro.) No county, city, town, or village political subdivision may place any restriction, either directly or in effect, on the installation or use of a wind energy system that is more restrictive than the rules promulgated by the commission under s. 196.378 (4g) (b). No political subdivision may place any restriction, either directly or in effect, on the installation or use of a solar energy system, as defined in s. 13.48 (2) (h) 1. g., or a wind energy system, as defined in s. 66.0403 (1) (m), unless the restriction satisfies one of the following conditions:

SB185-SSA2, s. 4 Section 4. 66.0401 (1e) of the statutes is created to read:

SB185-SSA2,4,24 66.0401 (1e) Definitions. In this section:

SB185-SSA2,5,3 (a) "Application for approval" means an application for approval of a wind energy system under rules promulgated by the commission under s. 196.378 (4g) (c) 1.

SB185-SSA2,5,4 (b) "Commission" means the public service commission.

SB185-SSA2,5,5 (c) "Political subdivision" means a city, village, town, or county.

SB185-SSA2,5,6 (d) "Wind energy system" has the meaning given in s. 66.0403 (1) (m).

SB185-SSA2, s. 5 Section 5. 66.0401 (2) of the statutes is amended to read:

SB185-SSA2,5,17 66.0401 (2) Authority to require trimming of blocking vegetation. A county, city, village, or town Subject to sub. (6) (a), a political subdivision may provide by enact an ordinance for relating to the trimming of vegetation that blocks solar energy, as defined in s. 66.0403 (1) (k), from a collector surface, as defined under s. 700.41 (2) (b), or that blocks wind from a wind energy system, as defined in s. 66.0403 (1) (m). The ordinance may include, but is not limited to, a designation of responsibility for the costs of the trimming. The ordinance may not require the trimming of vegetation that was planted by the owner or occupant of the property on which the vegetation is located before the installation of the solar or wind energy system.

SB185-SSA2, s. 6 Section 6. 66.0401 (3) of the statutes is created to read:

SB185-SSA2,5,23 66.0401 (3) Testing activities. A political subdivision may not prohibit or restrict any person from conducting testing activities to determine the suitability of a site for the placement of a wind energy system. A political subdivision objecting to such testing may petition the commission to impose reasonable restrictions on the testing activity.

SB185-SSA2, s. 7 Section 7. 66.0401 (4) of the statutes is created to read:

SB185-SSA2,6,13 66.0401 (4) Local procedure. (a) 1. Subject to subd. 2., a political subdivision that receives an application for approval shall determine whether it is complete and, no later than 45 days after the application is filed, notify the applicant about the determination. As soon as possible after receiving the application for approval, the political subdivision shall publish a class 1 notice, under ch. 985, stating that an application for approval has been filed with the political subdivision. If the political subdivision determines that the application is incomplete, the notice shall state the reason for the determination. An applicant may supplement and refile an application that the political subdivision has determined to be incomplete. There is no limit on the number of times that an applicant may refile an application for approval. If the political subdivision fails to determine whether an application for approval is complete within 45 days after the application is filed, the application shall be considered to be complete.

SB185-SSA2,6,21 2. If a political subdivision that receives an application for approval under subd. 1. does not have in effect an ordinance described under par. (g), the 45-day time period for determining whether an application is complete, as described in subd. 1., does not begin until the first day of the 4th month beginning after the political subdivision receives the application. A political subdivision may notify an applicant at any time, after receipt of the application and before the first day of the 4th month after its receipt, that it does not intend to enact an ordinance described under par. (g).

SB185-SSA2,6,24 3. On the same day that an applicant makes an application for approval under subd. 1. for a wind energy system, the applicant shall mail or deliver written notice of the application to the owners of land adjoining the site of the wind energy system.

SB185-SSA2,7,2 4. A political subdivision may not consider an applicant's minor modification to the application to constitute a new application for the purposes of this subsection.

SB185-SSA2,7,8 (b) A political subdivision shall make a record of its decision making on an application for approval, including a recording of any public hearing, copies of documents submitted at any public hearing, and copies of any other documents provided to the political subdivision in connection with the application for approval. The political subdivision's record shall conform to the commission's rules promulgated under s. 196.378 (4g) (c) 2.

SB185-SSA2,7,12 (c) A political subdivision shall base its decision on an application for approval on written findings of fact that are supported by the evidence in the record under par. (b). A political subdivision's procedure for reviewing the application for approval shall conform to the commission's rules promulgated under s. 196.378 (4g) (c) 3.

SB185-SSA2,7,17 (d) Except as provided in par. (e), a political subdivision shall approve or disapprove an application for approval no later than 90 days after the day on which it notifies the applicant that the application for approval is complete. If a political subdivision fails to act within the 90 days, or within any extended time period established under par. (e), the application is considered approved.