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LRB-2348/1
AJM:kjf
2017 - 2018 LEGISLATURE
April 5, 2017 - Introduced by Representatives R. Brooks, Kuglitsch, Krug,
Mursau, Skowronski, Horlacher, Petersen, Jacque, Gannon, Kremer,
Murphy, Quinn, Knodl, VanderMeer, Katsma, E. Brooks and Stuck,
cosponsored by Senators Roth, LeMahieu, Feyen, Stroebel, Marklein,
Petrowski, Darling and Cowles. Referred to Committee on Energy and
Utilities.
AB204,1,2 1An Act to amend 196.378 (3) (a) 1m.; and to create 196.378 (1) (h) 1. k. of the
2statutes; relating to: resources eligible for renewable resource credits.
Analysis by the Legislative Reference Bureau
This bill provides that heat that is a byproduct of a manufacturing process is
considered a renewable resource for the purpose of the renewable portfolio standards
law. Under current law, an electric utility or retail electric cooperative is subject to
certain requirements for ensuring that, in a given year, a specified percentage of
electricity that the utility or cooperative sells to retail customers is derived from
renewable resources, commonly referred to as “renewable portfolio standards.” To
meet its specified percentage, a utility or cooperative uses renewable resource credits
(RRCs) that it may create or purchase from others. A utility or cooperative creates
an RRC when it generates electricity from a renewable resource. Current law defines
“renewable resource” to include solar and wind power, geothermal technology,
biomass, and other specified resources. Under this bill, heat as described above is
also a renewable resource.
Current law also allows a utility or cooperative, or its customers or members,
to create an RRC based on their use of certain energy sources, to the extent that the
use displaces the use of electricity derived from conventional resources. This bill
provides that heat as described above that is used as thermal energy for another

purpose may be used to create an RRC, to the extent that its use displaces the use
of electricity derived from conventional resources.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB204,1 1Section 1. 196.378 (1) (h) 1. k. of the statutes is created to read:
AB204,2,22 196.378 (1) (h) 1. k. Heat that is a byproduct of a manufacturing process.
AB204,2 3Section 2. 196.378 (3) (a) 1m. of the statutes is amended to read:
AB204,3,44 196.378 (3) (a) 1m. The commission shall promulgate rules that allow an
5electric provider or customer or member of an electric provider to create a renewable
6resource credit based on use in a year by the electric provider, customer, or member
7of solar energy, including solar water heating and direct solar applications such as
8solar light pipe technology; wind energy; hydroelectric energy; geothermal energy;
9biomass; biogas; synthetic gas created by the plasma gasification of waste; densified
10fuel pellets described in sub. (1) (h) 1. i.; or fuel described in sub. (1) (h) 1. j.; heat as
11described in sub. (1) (h) 1. k.; or heat that is a byproduct of a manufacturing process
12and is used to provide thermal energy for another purpose;
but only if the use
13displaces the electric provider's, customer's, or member's use of electricity that is
14derived from conventional resources, and only if the displacement is verifiable and
15measurable, as determined by the commission. The rules shall allow an electric
16provider, customer, or member to create a renewable resource credit based on 100
17percent of the amount of the displacement. The rules shall also allow an electric
18provider, customer, or member to create a renewable resource credit under this
19subdivision regardless of when the source used to create the credit was placed in
20service. The rules may not allow an electric provider to create renewable resource
21credits under this subdivision based on renewable energy upon which renewable

1resource credits are created under subd. 1. The rules may also not allow an electric
2provider to create renewable resource credits under this subdivision based on
3hydroelectric energy that is not eligible for creating renewable resource credits
4under subd. 1.
AB204,3,55 (End)
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