CORRECTED COPY
LRBs0278/1
JK:cjs
2021 - 2022 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 489
December 3, 2021 - Offered by Representative Oldenburg.
AB489-ASA1,1,4
1An Act to amend 66.0602 (3) (n) 1., 66.0602 (3) (n) 2., 79.04 (5) (a) (intro) and
279.04 (5) (b) (intro); and
to create 79.005 (1h), 79.04 (8) and 79.04 (9) of the
3statutes;
relating to: changing the phase-out of utility aid payments for
4decommissioned power plants.
Analysis by the Legislative Reference Bureau
Under current law, if a power production plant that is exempt from property
taxes is decommissioned or closed, and therefore becomes taxable, the county and
municipality where the plant is located each receive a utility aid payment for the first
five years in which the plant is subject to the property tax, in an amount equal to a
percentage of the utility aid payment received for the last year in which the plant was
exempt. Under the bill, these post-exemption utility aid payments are made only
for a production plant that is decommissioned. Under the bill, “decommissioned”
means, with regard to a production plant, the earliest of the following: 1) the
production plant is no longer recovered through the utility's rates; or 2) the
production plant is transferred to a person who is not subject to the annual license
fees imposed by the state.
The bill also provides that a county and municipality where a power production
plant is located may receive a utility aid payment for up to 10 years if the plant is
decommissioned because it is transferred to a person who is not subject to the annual
license fees, depending on when the plant is so transferred. In that case, the payment
amount is determined by a sliding scale so that, for example, if a power production
plant is transferred in the third year in which all power generation units of the plant
are no longer generating electricity, the county and municipality receive payments
for eight years and the payments decrease each year, with the final payment being
12.5 percent of the amount received for the last year in which the plant was exempt.
The bill also provides that, with regard to a power production plant that has
multiple power generation units, the utility aid payment received by a county or
municipality will not be reduced on the basis that one or more, but not all, of the
power generation units are no longer generating electricity, and the amount of the
payment will be the same as the payment received in the year before the year the first
power generation unit is no longer generating electricity. In addition, the phase out
of utility aid payments under the bill does not begin until the production plant is
decommissioned, and the amounts of the phase-out payments are determined on the
basis of the amount of the payment received in the year before the year the first power
generation unit is no longer generating electricity.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB489-ASA1,1
1Section
1. 66.0602 (3) (n) 1. of the statutes is amended to read:
AB489-ASA1,2,132
66.0602
(3) (n) 1. For a political subdivision that receives a payment under s.
379.04 (5) (a) or (b)
or (9) (a) to (e), the limit otherwise applicable under this section
4is increased by the amount that the political subdivision levies in that year to replace
5a revenue reduction incurred under s. 79.04 (5) (a) or (b)
or (9) (a) to (e). Subject to
6subd. 2., the amount levied under this paragraph for a particular property may not
7exceed the amount paid to the political subdivision under s. 79.04 (5) (a) 1. or (b) 1.
8or (9) (a) 1., (b) 1., (c) 1., (d) 1., or (e) 1., less the amount to be paid to the political
9subdivision under s. 79.04 (5) (a) or (b)
or (9) (a) to (e) in the year in which the levy
10is imposed and less any amounts previously levied under this paragraph. A revenue
11reduction is incurred under this paragraph when the amount received by a political
12subdivision under s. 79.04 (5) (a) or (b)
or (9) (a) to (e) in the current year is less than
13the amount received under s. 79.04 (5) (a) or (b)
or (9) (a) to (e) in the previous year.
AB489-ASA1,2
1Section
2. 66.0602 (3) (n) 2. of the statutes is amended to read:
AB489-ASA1,3,82
66.0602
(3) (n) 2. This paragraph applies to revenue reductions for which a
3payment under s. 79.04 (5) (a) or (b)
or (9) (a) to (e) is made after November 23, 2019.
4If the first payment made under s. 79.04 (5) (a) or (b)
or (9) (a) to (e) after November
523, 2019, is under s. 79.04 (5) (a) 2. to 5. or (b) 2. to 5.
or (9) (a) 1. to 10., (b) 1. to 9.,
6(c) 1. to 8., (d) 1. to 7. or (e) 1. to 6., the amount of the payment made under s. 79.04
7(5) (a) or (b)
or (9) (a) to (e) in the previous year shall be used in determining the
8maximum amount of revenue reduction incurred.
AB489-ASA1,3
9Section
3. 79.005 (1h) of the statutes is created to read:
AB489-ASA1,3,1110
79.005
(1h) “Decommissioned” means, with regard to a production plant, the
11earliest of the following:
AB489-ASA1,3,1512
(a) The production plant is no longer recovered through the utility's or
13cooperative's rates or, for a production plant owned by a qualified wholesale electric
14company, as defined in s. 76.28 (1) (gm), the production plant is no longer generating
15electricity.
AB489-ASA1,3,1716
(b) The production plant is transferred to a person who is not subject to the
17annual license fee imposed under s. 76.28 (2) or 76.29 (2).
AB489-ASA1,4
18Section
4. 79.04 (5) (a) (intro) of the statutes is amended to read:
AB489-ASA1,4,219
79.04
(5) (a) (intro.)
If
Except as provided in sub. (9), if property that was
20exempt from the property tax under s. 70.112 (4) and that was used to generate power
21by a light, heat, or power company, except property under s. 66.0813, unless the
22production plant is owned or operated by a local governmental unit located outside
23of the municipality, or by an electric cooperative, or by a municipal electric company
24under s. 66.0825, is decommissioned
or closed, the municipality shall be paid, from
25the public utility account, an amount equal to the following percentages of the
1payment that the municipality received under this section during the last year that
2the property was exempt from the property tax:
AB489-ASA1,5
3Section
5. 79.04 (5) (b) (intro) of the statutes is amended to read:
AB489-ASA1,4,124
79.04
(5) (b) (intro.)
If
Except as provided in sub. (9), if property that was
5exempt from the property tax under s. 70.112 (4) and that was used to generate power
6by a light, heat, or power company, except property under s. 66.0813, unless the
7production plant is owned or operated by a local governmental unit located outside
8of the municipality, or by an electric cooperative, or by a municipal electric company
9under s. 66.0825, is decommissioned
or closed, the county shall be paid, from the
10public utility account, an amount equal to the following percentages of the payment
11the county received under this section during the last year that the property was
12exempt from the property tax:
AB489-ASA1,6
13Section
6. 79.04 (8) of the statutes is created to read:
AB489-ASA1,4,1714
79.04
(8) All of the following apply to the payments for property of a production
15plant that includes multiple power generation units, except that this subsection
16applies only if the production plant's first power generation unit is no longer
17generating electricity after the effective date of this subsection .... [LRB inserts date]:
AB489-ASA1,4,2218
(a) No payment received by a municipality or county under sub. (1), (2), (6), or
19(7) shall be reduced on the basis that one or more, but not all, of the power generation
20units are no longer generating electricity, and the amount of the payment shall be
21the amount that the municipality or county received in the year before the year in
22which the first power generation unit is no longer generating electricity.
AB489-ASA1,5,223
(b) The payments under subs. (5) (a) or (b) or (9) shall not be made until the
24production plant is decommissioned, and then the payments shall be determined on
25the basis of the amount of the payment received by the municipality or county under
1sub. (1), (2), (6), or (7) in the year before the year in which the first power generation
2unit is no longer generating electricity.
AB489-ASA1,7
3Section
7. 79.04 (9) of the statutes is created to read:
AB489-ASA1,5,104
79.04
(9) (a) For a production plant that is decommissioned as provided under
5s. 79.005 (1h) (b) as a result of the plant being transferred within the first year that
6all power generation units of the plant are no longer generating electricity, each
7municipality and county shall be paid, from the public utility account, an amount
8equal to the following percentages of the payment the municipality and county
9received under this section during the last year that the property was exempt from
10the property tax:
AB489-ASA1,5,1111
1. In the first year that the property is taxable, 100 percent.
AB489-ASA1,5,1212
2. In the 2nd year that the property is taxable, 90 percent.
AB489-ASA1,5,1313
3. In the 3rd year that the property is taxable, 80 percent.
AB489-ASA1,5,1414
4. In the 4th year that the property is taxable, 70 percent.
AB489-ASA1,5,1515
5. In the 5th year that the property is taxable, 60 percent.
AB489-ASA1,5,1616
6. In the 6th year that the property is taxable, 50 percent.
AB489-ASA1,5,1717
7. In the 7th year that the property is taxable, 40 percent.
AB489-ASA1,5,1818
8. In the 8th year that the property is taxable, 30 percent.
AB489-ASA1,5,1919
9. In the 9th year that the property is taxable, 20 percent.
AB489-ASA1,5,2020
10. In the 10th year that the property is taxable, 10 percent.
AB489-ASA1,6,221
(b) For a production plant that is decommissioned as provided under s. 79.005
22(1h) (b) as a result of the plant being transferred in the 2nd year that all power
23generation units of the plant are no longer generating electricity, each municipality
24and county shall be paid, from the public utility account, an amount equal to the
1following percentages of the payment the municipality and county received under
2this section during the last year that the property was exempt from the property tax:
AB489-ASA1,6,33
1. In the first year that the property is taxable, 100 percent.
AB489-ASA1,6,44
2. In the 2nd year that the property is taxable, 89 percent.
AB489-ASA1,6,55
3. In the 3rd year that the property is taxable, 78 percent.
AB489-ASA1,6,66
4. In the 4th year that the property is taxable, 67 percent.
AB489-ASA1,6,77
5. In the 5th year that the property is taxable, 56 percent.
AB489-ASA1,6,88
6. In the 6th year that the property is taxable, 45 percent.
AB489-ASA1,6,99
7. In the 7th year that the property is taxable, 34 percent.
AB489-ASA1,6,1010
8. In the 8th year that the property is taxable, 23 percent.
AB489-ASA1,6,1111
9. In the 9th year that the property is taxable, 12 percent.
AB489-ASA1,6,1712
(c) For a production plant that is decommissioned as provided under s. 79.005
13(1h) (b) as a result of the plant being transferred in the 3nd year that all power
14generation units of the plant are no longer generating electricity, each municipality
15and county shall be paid, from the public utility account, an amount equal to the
16following percentages of the payment the municipality and county received under
17this section during the last year that the property was exempt from the property tax:
AB489-ASA1,6,1818
1. In the first year that the property is taxable, 100 percent.
AB489-ASA1,6,1919
2. In the 2nd year that the property is taxable, 87.5 percent.
AB489-ASA1,6,2020
3. In the 3rd year that the property is taxable, 75 percent.
AB489-ASA1,6,2121
4. In the 4th year that the property is taxable, 62.5 percent.
AB489-ASA1,6,2222
5. In the 5th year that the property is taxable, 50 percent.
AB489-ASA1,6,2323
6. In the 6th year that the property is taxable, 37.5 percent.
AB489-ASA1,6,2424
7. In the 7th year that the property is taxable, 25 percent.
AB489-ASA1,6,2525
8. In the 8th year that the property is taxable, 12.5 percent.
AB489-ASA1,7,6
1(d) For a production plant that is decommissioned as provided under s. 79.005
2(1h) (b) as a result of the plant being transferred in the 4th year that all power
3generation units of the plant are no longer generating electricity, each municipality
4and county shall be paid, from the public utility account, an amount equal to the
5following percentages of the payment the municipality and county received under
6this section during the last year that the property was exempt from the property tax:
AB489-ASA1,7,77
1. In the first year that the property is taxable, 100 percent.
AB489-ASA1,7,88
2. In the 2nd year that the property is taxable, 86 percent.
AB489-ASA1,7,99
3. In the 3rd year that the property is taxable, 72 percent.
AB489-ASA1,7,1010
4. In the 4th year that the property is taxable, 58 percent.
AB489-ASA1,7,1111
5. In the 5th year that the property is taxable, 44 percent.
AB489-ASA1,7,1212
6. In the 6th year that the property is taxable, 30 percent.
AB489-ASA1,7,1313
7. In the 7th year that the property is taxable, 16 percent.
AB489-ASA1,7,1914
(e) For a production plant that is decommissioned as provided under s. 79.005
15(1h) (b) as a result of the plant being transferred in the 5th year that all power
16generation units of the plant are no longer generating electricity, each municipality
17and county shall be paid, from the public utility account, an amount equal to the
18following percentages of the payment the municipality and county received under
19this section during the last year that the property was exempt from the property tax:
AB489-ASA1,7,2020
1. In the first year that the property is taxable, 100 percent.
AB489-ASA1,7,2121
2. In the 2nd year that the property is taxable, 83 percent.
AB489-ASA1,7,2222
3. In the 3rd year that the property is taxable, 66 percent.
AB489-ASA1,7,2323
4. In the 4th year that the property is taxable, 49 percent.
AB489-ASA1,7,2424
5. In the 5th year that the property is taxable, 32 percent.
AB489-ASA1,7,2525
6. In the 6th year that the property is taxable, 16 percent.