AB174: Bill Text

AB174,27,14 196.378 (2) (e) 2. Notwithstanding reasonable efforts to protect against unreasonable increases in rates of the applicant’s ratepayers or members, compliance with the deadline will result in unreasonable increases in rates of the applicant’s ratepayers or members, including increases that are due to the discontinuation of federal renewable energy tax credits or other federal policies intended to reduce the acquisition costs of renewable low-carbon-emission energy.

AB174,47 Section 47. 196.378 (2) (e) 3. of the statutes is amended to read:

AB174,27,19 196.378 (2) (e) 3. Notwithstanding reasonable efforts to obtain required approvals, the applicant cannot comply with the deadline because the applicant or a supplier has experienced or will experience delays in receiving required siting or permitting approvals for renewable low-carbon-emission energy projects.

AB174,48 Section 48. 196.378 (2) (e) 4. of the statutes is amended to read:

AB174,27,24 196.378 (2) (e) 4. Notwithstanding reasonable efforts to secure transmission service, the applicant cannot comply with the deadline because the applicant faces transmission constraints that interfere with the economic and reliable delivery of renewable low-carbon-emission energy to the applicant’s system.

AB174,49 Section 49. 196.378 (3) (title) of the statutes is amended to read:

AB174,28,2 196.378 (3) (title) Renewable low-carbon-emission resource credits.

AB174,50 Section 50. 196.378 (3) (a) of the statutes is amended to read:

AB174,28,22 196.378 (3) (a) 1. Each megawatt hour of an electric provider’s total renewable low-carbon-emission energy creates one renewable low-carbon-emission resource credit for the electric provider. Subject to subd. 2., an electric provider that exceeds its renewable low-carbon-emission energy percentage required under sub. (2) (a) 2. may, in the applicable year, bank any excess renewable low-carbon-emission resource credits or any portion of any excess renewable low-carbon-emission resource credit for use in a subsequent year or sell any excess renewable low-carbon- emission resource credits or any portion of any excess renewable low-carbon- emission resource credit to any other electric provider at any negotiated price. An electric provider that creates or purchases a renewable low-carbon-emission resource credit or portion may use the credit or portion, as provided under par. (c), to establish compliance with sub. (2) (a) 2. The commission shall promulgate rules that establish requirements for the creation and use of a renewable low-carbon- emission resource credit created on or after January 1, 2004, including calculating the amount of a renewable low-carbon-emission resource credit, and for the tracking of renewable low-carbon-emission resource credits by a regional renewable low-carbon-emission resource credit tracking system. The rules shall specify the manner for aggregating or allocating credits under this subdivision or sub. (2) (b) 4. or 5.

AB174,29,22 1m. The commission shall promulgate rules that allow an electric provider or customer or member of an electric provider to create a renewable low-carbon- emission resource credit based on use in a year by the electric provider, customer, or member of solar energy, including solar water heating and direct solar applications such as solar light pipe technology; wind energy; hydroelectric energy; geothermal energy; biomass; biogas; synthetic gas created by the plasma gasification of waste; densified fuel pellets described in sub. (1) (h) 1. i.; fuel described in sub. (1) (h) 1. j.; heat as described in sub. (1) (h) 1. k.; or heat that is a byproduct of a manufacturing process and is used to provide thermal energy for another purpose; or nuclear energy; but only if the use displaces the electric provider’s, customer’s, or member’s use of electricity that is derived from conventional resources, and only if the displacement is verifiable and measurable, as determined by the commission. The rules shall allow an electric provider, customer, or member to create a renewable low-carbon-emission resource credit based on 100 percent of the amount of the displacement. The rules shall also allow an electric provider, customer, or member to create a renewable low-carbon-emission resource credit under this subdivision regardless of when the source used to create the credit was placed in service. The rules may not allow an electric provider to create renewable low-carbon-emission resource credits under this subdivision based on renewable low-carbon-emission energy upon which renewable low-carbon-emission resource credits are created under subd. 1. The rules may also not allow an electric provider to create renewable low-carbon-emission resource credits under this subdivision based on hydroelectric energy that is not eligible for creating renewable low-carbon-emission resource credits under subd. 1.

AB174,30,8 2. The commission shall promulgate rules for calculating the amount of a renewable resource credit, as defined in sub. (1) (i), 2023 stats., that is bankable from a renewable facility, as defined in sub. (1) (g), 2023 stats., placed into service before January 1, 2004. The Except as provided in subd. 3., the amount of a bankable renewable resource credit, as defined in sub. (1) (i), 2023 stats., created on or after January 1, 2004, from such a renewable facility, as defined in sub. (1) (g), 2023 stats., or a low-carbon-emission facility, except for such a renewable facility owned by a retail customer of an electric provider, is limited to the incremental increase in output from the renewable facility that is due to capacity improvements made on or after January 1, 2004.

AB174,51 Section 51. 196.378 (3) (a) 3. of the statutes is created to read:

AB174,30,18 196.378 (3) (a) 3. The commission shall promulgate rules for calculating the amount of a low-carbon-emission resource credit that is bankable from a low- carbon-emission facility that derives electricity from nuclear power placed into service before January 1, 2026. The amount of a bankable low-carbon-emission resource credit created on or after January 1, 2026, from such a low-carbon- emission facility, except a low-carbon-emission facility owned by a retail customer of an electric provider, is limited to the incremental increase in output from the low- carbon-emission facility that is due to capacity improvements made on or after January 1, 2026.

AB174,52 Section 52. 196.378 (3) (c) of the statutes is amended to read:

AB174,31,3 196.378 (3) (c) A renewable resource credit, as defined in sub. (1) (i), 2023 stats., created under s. 196.378 (3) (a), 2003 stats., may not be used after December 31, 2011. A renewable resource credit, as defined in sub. (1) (i), 2023 stats., or a low- carbon-emission resource credit created under par. (a) 1., 1m., or 2. may not be used after the 4th year after the year in which the credit is created, except the commission may promulgate rules specifying a different period of time if the commission determines that such period is necessary for consistency with any regional renewable resource credit trading program that applies in this state.

AB174,53 Section 53. 196.378 (4) of the statutes is amended to read:

AB174,31,8 196.378 (4) Renewable Low-carbon-emission resource rules. The commission may promulgate rules that designate a resource, except for a conventional resource, as a renewable low-carbon-emission resource in addition to the resources specified in sub. (1) (h) 1. and 1m.

AB174,54 Section 54. 196.378 (4m) (title) of the statutes is amended to read:

AB174,31,11 196.378 (4m) (title) Additional renewable low-carbon-emission resources requirements.

AB174,55 Section 55. 196.378 (4m) (a) of the statutes is amended to read:

AB174,31,19 196.378 (4m) (a) The commission may not impose on an electric provider any requirement that increases the electric provider’s renewable low-carbon-emission energy percentage beyond that required under sub. (2) (a) 2. If an electric provider is in compliance with the requirements of sub. (2) (a) 2., the commission may not require the electric provider to undertake, administer, or fund any other renewable low-carbon-emission energy program. This paragraph does not limit the authority of the commission to enforce an electric provider’s obligations under s. 196.374.

AB174,56 Section 56. 196.378 (4m) (b) of the statutes is amended to read:

AB174,32,2 196.378 (4m) (b) An electric utility may, with commission approval, administer or fund a program that increases the electric utility’s renewable low- carbon-emission energy percentage beyond that required under sub. (2) (a) 2. The commission may not order an electric utility to administer or fund a program under this paragraph.

AB174,57 Section 57. 196.378 (4r) of the statutes is amended to read:

AB174,32,11 196.378 (4r) Reports. No later than July 1 of each even-numbered year, the commission shall submit a report to the governor and chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2) that evaluates the impact of the requirements of this section on the rates and revenue requirements of electric providers and compares that impact with the impact that would have occurred if renewable low-carbon-emission energy practices of electric providers were subject to market forces in the absence of the requirements of this section.

AB174,58 Section 58. 196.378 (5) (intro.) of the statutes is amended to read:

AB174,32,20 196.378 (5) Penalty. (intro.) Any person who violates sub. (2) or any renewable low-carbon-emission energy supplier who provides an electric provider with a false or misleading certification regarding the sources or amounts of renewable low-carbon-emission energy supplied at wholesale to the electric provider shall forfeit not less than $5,000 nor more than $500,000. Forfeitures under this subsection shall be enforced by action on behalf of the state by the attorney general. A court imposing a forfeiture under this subsection shall consider all of the following in determining the amount of the forfeiture:

AB174,59 Section 59. 196.485 (1) (cr) of the statutes is created to read:

AB174,32,24 196.485 (1) (cr) “Incumbent transmission facility owner” includes a transmission company or transmission utility, regardless of whether this state is its principal place of business or where it is organized or headquartered.

AB174,60 Section 60. 196.485 (1) (ef) of the statutes is created to read:

AB174,33,5 196.485 (1) (ef) “Regionally cost-shared transmission line” means a high- voltage transmission line that is eligible, in whole or in part, for regional cost sharing and is not subject to a right of first refusal in accordance with the tariff of the Midwest independent system operator.

AB174,61 Section 61. 196.485 (1) (hm) of the statutes is created to read:

AB174,33,8 196.485 (1) (hm) “Transmission facility contract” means a contract for the design of, construction of, or furnishing of materials for a transmission facility.

AB174,62 Section 62. 196.485 (3g) of the statutes is created to read:

AB174,33,19 196.485 (3g) Incumbent transmission facility owner rights. (a) Rights. Subject to the approval of the commission under s. 196.491 (3), an incumbent transmission facility owner has the right to construct, own, and maintain a transmission facility that has been approved for construction in the Midwest independent system operator’s transmission plan and that connects to transmission facilities owned by that incumbent transmission facility owner. The right to construct, own, and maintain a transmission facility that connects to transmission facilities owned by 2 or more incumbent transmission facility owners belongs individually and proportionally to each incumbent transmission facility owner, unless otherwise agreed upon in writing.

AB174,34,4 (b) Commission procedure. 1. If, in the Midwest independent system operator’s transmission plan, a regionally cost-shared transmission line has been approved for construction and connection to facilities owned by an incumbent transmission facility owner, the incumbent transmission facility owner shall give written notice to the commission regarding the owner’s intent to construct, own, and maintain the regionally cost-shared transmission line no later than 90 days after approval of the transmission plan or 90 days after the effective date of this subdivision .... [LRB inserts date], whichever is later.

AB174,34,11 2. If an incumbent transmission facility owner indicates in its notice to the commission under subd. 1. that it does not intend to construct the regionally cost- shared transmission line, it shall in the notice fully explain the basis for that decision. In that case, the commission may determine whether the incumbent transmission facility owner or another entity is required to construct the regionally cost-shared transmission line, taking into consideration issues such as cost, efficiency, reliability, and other factors identified in this chapter.

AB174,63 Section 63. 196.485 (3j) of the statutes is created to read:

AB174,34,20 196.485 (3j) Effect of certain actions. If the president of the United States issues a lawful executive order, the federal energy regulatory commission issues a lawful order or rule, or Congress enacts a valid statute and that executive order, order, rule, or statute has the effect of repealing or nullifying provisions of the Midwest independent system operator’s tariff that allow the owner of a transmission facility to allocate costs of the transmission facility over a region encompassing more than one state, then subs. (1) (cr) and (ef), (3g), and (3r) (a) 4. are void effective on the date of that executive order, order, rule, or statute.

AB174,64 Section 64. 196.485 (3r) of the statutes is created to read:

AB174,34,23 196.485 (3r) Cost control, competitive bidding requirements and oversight.

AB174,35,2 (a) Cost control, requirement of competition, and cost allocation. With respect to a transmission facility for which an application is filed pursuant to s. 196.491 (3), the owner of the proposed transmission facility shall do all of the following:

AB174,35,6 1. In any application filed pursuant to s. 196.491 (3), provide to the commission an estimate of the cost to construct the transmission facility and documentation showing that this cost is the result of competitively bid transmission facility contracts pursuant to par. (b).

AB174,35,10 2. Until construction of the transmission facility is complete, provide to the commission an annual report that includes an updated estimate of the cost to construct the transmission facility and an explanation of changes from prior cost estimates provided under this subdivision or subd. 1.

AB174,35,13 3. No later than 30 days after the transmission facility is placed in service, provide evidence to the commission that transmission facility contracts performed in completing the transmission facility were awarded in compliance with par. (b).

AB174,35,20 4. With respect to a regionally cost-shared transmission line under sub. (3g) constructed by an incumbent transmission facility owner, as soon as practicable after the information is available, submit a report to the commission, the assembly speaker, the assembly minority leader, the senate majority leader, the senate minority leader, and the governor detailing the amount of the costs of the regionally cost-shared transmission line project that are being charged to energy consumers outside this state.

AB174,36,2 (b) Competitive bidding process requirement. 1. An owner of a proposed transmission facility for which a certificate of public convenience and necessity is required under s. 196.491 (3) shall let by contract a transmission facility contract if the estimated cost of performing the contract exceeds $1,000,000, and shall comply with all of the following:

AB174,36,3 a. The bidding shall be on the basis of sealed competitive bids.

AB174,36,7 b. If fewer than 3 bids from responsible bidders are initially received for the contract, the owner shall solicit additional bids for at least 30 additional days. If fewer than 3 bids from responsible bidders are received after the additional bidding period, the owner shall document that circumstance.

AB174,36,8 c. The contract shall be awarded to the lowest responsible bidder.

AB174,36,15 2. a. An owner of a proposed transmission facility entering into a transmission facility contract that is required to be competitively bid under subd. 1. may require a person, before the person submits a bid for a transmission facility contract, to submit a statement containing information relating to financial ability, equipment, experience in the work prescribed by the transmission facility contract, and ability to safely perform the work prescribed by the transmission facility contract.

AB174,36,17 b. A person shall submit a statement described in subd. 2. a. in the manner and form designated by the owner of the proposed transmission facility.

AB174,36,23 c. The contents of a statement described in subd. 2. a. shall be confidential and may not be disclosed except upon the written order of the person submitting the statement, for necessary use by the owner of the proposed transmission facility in qualifying the person, for necessary use by the legislative audit bureau in conducting an audit described in par. (c) 1., or in cases of actions against, or by, the person or owner of the proposed transmission facility.

AB174,37,2 d. The owner of the proposed transmission facility shall evaluate a statement described in subd. 2. a. and shall find the maker of the statement either responsible or not responsible.

AB174,37,7 3. An owner of a proposed transmission facility may not separate a transmission facility contract into multiple transmission facility contracts to decrease the estimated costs of performing each of the transmission facility contracts below the threshold specified in subd. 1. to enter into the transmission facility contracts without complying with the requirements under subd. 1.

AB174,37,16 (c) Audits. 1. The legislative audit bureau shall conduct an audit of 15 percent of transmission facility contracts that are subject to the requirements under par. (b) and that are performed related to constructing each transmission facility for which a certificate is issued under s. 196.491 (3). In addition, the legislative audit bureau shall conduct an audit of a transmission facility contract that is subject to the requirements under par. (b) and for which the joint legislative audit committee requests an audit. Within 30 days after completion of an audit under this subdivision, the legislative audit bureau shall file with the commission a detailed report thereof, including specific instances of any violations of par. (b).

AB174,37,20 2. Upon receipt of a report from the legislative audit bureau under subd. 1., the commission shall open a docket to review the audit report, in which proceeding the commission shall hold a public hearing. The commission shall determine if the transmission facility owner violated any requirement under par. (b).

AB174,38,3 (d) Rate of return on equity; recovery of debt. 1. If the commission determines under par. (c) 2. that an owner of a transmission facility for which the transmission rates are determined by the federal energy regulatory commission violated par. (b), the owner shall seek approval of a tariff that provides a rate of return on equity that is either half of the base return on equity guaranteed with respect to the transmission facility or equal to the transmission facility owner’s average cost of debt, whichever is higher.

AB174,38,12 2. a. Except as provided in subd. 2. b., if the cost to construct a transmission facility for which the transmission rates are determined by the federal energy regulatory commission exceeds the estimated cost provided to the commission under par. (a) 1. or 2. for the transmission facility, the owner of the transmission facility shall seek approval of a tariff with respect to the transmission facility that provides a rate of return on equity, for the portion of the cost to construct the transmission facility that exceeds the estimated cost provided under par. (a) 1. or 2., that is either half of the base return on equity or equal to the transmission facility owner’s average cost of debt, whichever is higher.

AB174,38,15 b. Costs that exceed the estimated cost for the facility provided to the commission under par. (a) 1. or 2. but that are prudently incurred or that are a result of force majeure may not be considered excess costs under subd. 2. a.

AB174,38,19 3. An owner of a transmission facility for which a certificate is issued under s. 196.491 (3) may not seek to recover in rates approved by the federal energy regulatory commission an amount of equity in the transmission facility that exceeds 50 percent of the project costs.

AB174,65 Section 65. 196.491 (1) (ar) of the statutes is created to read:

AB174,38,23 196.491 (1) (ar) “Battery energy storage system” means a device that occupies one acre or more and that captures energy produced at one time, stores that energy for future use, and later delivers that energy as electricity.

AB174,66 Section 66. 196.491 (1) (e) of the statutes is amended to read:

AB174,39,2 196.491 (1) (e) “Facility” means a large electric generating facility or, a high- voltage transmission line, or a battery energy storage system.

AB174,67 Section 67. 196.491 (1) (h) of the statutes is created to read:

AB174,39,5 196.491 (1) (h) “Large solar energy system” has the meaning given in s. 66.0401 (1e) (bk).

AB174,68 Section 68. 196.491 (1) (i) of the statutes is created to read:

AB174,39,8 196.491 (1) (i) “Large wind energy system” has the meaning given in s. 66.0401 (1e) (bL).

AB174,69 Section 69. 196.491 (3) (a) 1m. of the statutes is created to read:

AB174,39,15 196.491 (3) (a) 1m. A person who files an application under subd. 1. for a large wind energy system, large solar energy system, or battery energy storage system proposed to be located on prime farmland, as defined in s. 93.74 (1) (d), having a productivity index, as defined in s. 93.74 (1) (e), of 0.6 or greater shall include with the application proof that the applicant has entered into contracts for the purchase of agricultural conservation easements required under s. 93.74 (2) (a).

AB174,70 Section 70. 196.491 (3) (a) 4. of the statutes is created to read:

AB174,39,20 196.491 (3) (a) 4. At least 45 days before a person files an application under subd. 1. for a large wind energy system, large solar energy system, or battery energy storage system, the person shall provide written notice of the proposed project to all of the following:

AB174,39,21 a. Each property owner located within one mile of a proposed project

AB174,39,22 b. Each city, village, town, or county in which project facilities are proposed.

AB174,39,24 c. The American Indian tribal governing body for any land under that body’s jurisdiction that is within the project boundary.

AB174,71 Section 71. 196.491 (3) (a) 5. of the statutes is created to read:

AB174,40,5 196.491 (3) (a) 5. At least 45 days before a person files an application under subd. 1. for a large wind energy system, large solar energy system, or battery energy storage system, the person shall post notice of the proposed project by class 1 notice under ch. 985 in the official state newspaper.

AB174,72 Section 72. 196.491 (3) (a) 6. of the statutes is created to read:

AB174,40,12 196.491 (3) (a) 6. At least 45 days before a person files an application under subd. 1. for a large wind energy system, large solar energy system, or battery energy storage system, the person shall satisfy the requirement under s. 66.0401 (10). This subdivision does not require a person to enter into a economic development agreement with a political subdivision under s. 66.0401 (10) to file an application under subd. 1.

AB174,73 Section 73. 196.491 (3) (d) 9. of the statutes is created to read:

AB174,40,18 196.491 (3) (d) 9. For a large wind energy system, large solar energy system, or battery energy storage system, the applicant has provided the commission with documentation that the applicant consulted about the project with the American Indian tribal governing body for any land under that body’s jurisdiction that is within the project boundary.

AB174,74 Section 74. 196.491 (3) (d) 10. of the statutes is created to read:

AB174,40,23 196.491 (3) (d) 10. For a large wind energy system, large solar energy system, or battery energy storage system, the applicant has provided the commission with a decommissioning and site restoration plan under s. 66.0401 (7) and a drainage plan under s. 66.0401 (11).

AB174,75 Section 75. 196.491 (3) (d) 11. of the statutes is created to read:

AB174,41,2 196.491 (3) (d) 11. For a large wind energy system, large solar energy system, or battery energy storage system, all of the following apply:

AB174,41,6 a. Including the acres occupied by the facility proposed by the applicant, the total amount of acres of land in the town in which the facility is located that are occupied by a large wind energy system, a large solar energy system, or a battery energy storage system is not more than 2,000 acres.

AB174,41,10 b. Including the acres occupied by the facility proposed by the applicant, the total amount of acres of land in the county in which the facility is located that are occupied by a large wind energy system, a large solar energy system, or a battery energy storage system is not more than 5,000 acres.

AB174,76 Section 76. 238.15 (1) (g) of the statutes is amended to read: