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2021 - 2022 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 3,
TO ASSEMBLY BILL 489
February 2, 2022 - Offered by Representative Oldenburg.
AB489-ASA3,1,4 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), 79.04 (8m) and 79.04
3(9) of the statutes; relating to: changing the phase-out of utility aid payments
4for decommissioned 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
have permanently ceased 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 have permanently ceased 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 permanently ceased 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 permanently ceased generating
electricity.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB489-ASA3,1 1Section 1. 66.0602 (3) (n) 1. of the statutes is amended to read:
AB489-ASA3,3,22 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

1subdivision under s. 79.04 (5) (a) or (b) or (9) (a) to (e) in the current year is less than
2the amount received under s. 79.04 (5) (a) or (b) or (9) (a) to (e) in the previous year.
AB489-ASA3,2 3Section 2. 66.0602 (3) (n) 2. of the statutes is amended to read:
AB489-ASA3,3,104 66.0602 (3) (n) 2. This paragraph applies to revenue reductions for which a
5payment under s. 79.04 (5) (a) or (b) or (9) (a) to (e) is made after November 23, 2019.
6If the first payment made under s. 79.04 (5) (a) or (b) or (9) (a) to (e) after November
723, 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.,
8(c) 1. to 8., (d) 1. to 7. or (e) 1. to 6.
, the amount of the payment made under s. 79.04
9(5) (a) or (b) or (9) (a) to (e) in the previous year shall be used in determining the
10maximum amount of revenue reduction incurred.
AB489-ASA3,3 11Section 3. 79.005 (1h) of the statutes is created to read:
AB489-ASA3,3,1312 79.005 (1h) “Decommissioned” means, with regard to a production plant, the
13earliest of the following:
AB489-ASA3,3,1714 (a) The production plant is no longer recovered through the utility's or
15cooperative's rates or, for a production plant owned by a qualified wholesale electric
16company, as defined in s. 76.28 (1) (gm), the production plant permanently ceases
17generating electricity.
AB489-ASA3,3,1918 (b) The production plant is transferred to a person who is not subject to the
19annual license fee imposed under s. 76.28 (2) or 76.29 (2).
AB489-ASA3,4 20Section 4. 79.04 (5) (a) (intro.) of the statutes is amended to read:
AB489-ASA3,4,421 79.04 (5) (a) (intro.) If Except as provided in sub. (9), if property that was
22exempt from the property tax under s. 70.112 (4) and that was used to generate power
23by a light, heat, or power company, except property under s. 66.0813, unless the
24production plant is owned or operated by a local governmental unit located outside
25of the municipality, or by an electric cooperative, or by a municipal electric company

1under s. 66.0825, is decommissioned or closed, the municipality shall be paid, from
2the public utility account, an amount equal to the following percentages of the
3payment that the municipality received under this section during the last year that
4the property was exempt from the property tax:
AB489-ASA3,5 5Section 5. 79.04 (5) (b) (intro.) of the statutes is amended to read:
AB489-ASA3,4,146 79.04 (5) (b) (intro.) If Except as provided in sub. (9), if property that was
7exempt from the property tax under s. 70.112 (4) and that was used to generate power
8by a light, heat, or power company, except property under s. 66.0813, unless the
9production plant is owned or operated by a local governmental unit located outside
10of the municipality, or by an electric cooperative, or by a municipal electric company
11under s. 66.0825, is decommissioned or closed, the county shall be paid, from the
12public utility account, an amount equal to the following percentages of the payment
13the county received under this section during the last year that the property was
14exempt from the property tax:
AB489-ASA3,6 15Section 6. 79.04 (8) of the statutes is created to read:
AB489-ASA3,4,1916 79.04 (8) All of the following apply to the payments for property of a production
17plant that includes multiple power generation units, except that this subsection
18applies only if the production plant's first power generation unit permanently ceases
19generating electricity after the effective date of this subsection .... [LRB inserts date]:
AB489-ASA3,4,2520 (a) No payment received by a municipality or county under sub. (1), (2), (6), or
21(7) shall be reduced on the basis that one or more, but not all, of the power generation
22units permanently ceases generating electricity, and the amount of the payment
23shall be the amount that the municipality or county received in the year before the
24year in which the first power generation unit permanently ceased generating
25electricity.
AB489-ASA3,5,5
1(b) The payments under subs. (5) (a) or (b) or (9) shall not be made until the
2production plant is decommissioned, and then the payments shall be determined on
3the basis of the amount of the payment received by the municipality or county under
4sub. (1), (2), (6), or (7) in the year before the year in which the first power generation
5unit permanently ceased generating electricity.
AB489-ASA3,7 6Section 7. 79.04 (8m) of the statutes is created to read:
AB489-ASA3,5,117 79.04 (8m) Notwithstanding sub. (1), (2), (6), or (7), if a production plant that
8includes multiple power generation units permanently ceases generating electricity
9in 2023, the municipality and county shall receive payments from the public utility
10account equal to the payments the municipality or county received under sub. (1), (2),
11(6), or (7) in 2015.
AB489-ASA3,8 12Section 8. 79.04 (9) of the statutes is created to read:
AB489-ASA3,5,1913 79.04 (9) (a) For a production plant that is decommissioned as provided under
14s. 79.005 (1h) (b) as a result of the plant being transferred within the first year that
15all power generation units of the plant permanently cease generating electricity,
16each municipality and county shall be paid, from the public utility account, an
17amount equal to the following percentages of the payment the municipality and
18county received under this section during the last year that the property was exempt
19from the property tax:
AB489-ASA3,5,2020 1. In the first year that the property is taxable, 100 percent.
AB489-ASA3,5,2121 2. In the 2nd year that the property is taxable, 90 percent.
AB489-ASA3,5,2222 3. In the 3rd year that the property is taxable, 80 percent.
AB489-ASA3,5,2323 4. In the 4th year that the property is taxable, 70 percent.
AB489-ASA3,5,2424 5. In the 5th year that the property is taxable, 60 percent.
AB489-ASA3,5,2525 6. In the 6th year that the property is taxable, 50 percent.
AB489-ASA3,6,1
17. In the 7th year that the property is taxable, 40 percent.
AB489-ASA3,6,22 8. In the 8th year that the property is taxable, 30 percent.
AB489-ASA3,6,33 9. In the 9th year that the property is taxable, 20 percent.
AB489-ASA3,6,44 10. In the 10th year that the property is taxable, 10 percent.
AB489-ASA3,6,115 (b) For a production plant that is decommissioned as provided under s. 79.005
6(1h) (b) as a result of the plant being transferred in the 2nd year that all power
7generation units of the plant permanently cease generating electricity, each
8municipality and county shall be paid, from the public utility account, an amount
9equal to the following percentages of the payment the municipality and county
10received under this section during the last year that the property was exempt from
11the property tax:
AB489-ASA3,6,1212 1. In the first year that the property is taxable, 100 percent.
AB489-ASA3,6,1313 2. In the 2nd year that the property is taxable, 89 percent.
AB489-ASA3,6,1414 3. In the 3rd year that the property is taxable, 78 percent.
AB489-ASA3,6,1515 4. In the 4th year that the property is taxable, 67 percent.
AB489-ASA3,6,1616 5. In the 5th year that the property is taxable, 56 percent.
AB489-ASA3,6,1717 6. In the 6th year that the property is taxable, 45 percent.
AB489-ASA3,6,1818 7. In the 7th year that the property is taxable, 34 percent.
AB489-ASA3,6,1919 8. In the 8th year that the property is taxable, 23 percent.
AB489-ASA3,6,2020 9. In the 9th year that the property is taxable, 12 percent.
AB489-ASA3,7,221 (c) 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 3nd year that all power
23generation units of the plant permanently cease generating electricity, each
24municipality and county shall be paid, from the public utility account, an amount
25equal to the following percentages of the payment the municipality and county

1received under this section during the last year that the property was exempt from
2the property tax:
AB489-ASA3,7,33 1. In the first year that the property is taxable, 100 percent.
AB489-ASA3,7,44 2. In the 2nd year that the property is taxable, 87.5 percent.
AB489-ASA3,7,55 3. In the 3rd year that the property is taxable, 75 percent.
AB489-ASA3,7,66 4. In the 4th year that the property is taxable, 62.5 percent.
AB489-ASA3,7,77 5. In the 5th year that the property is taxable, 50 percent.
AB489-ASA3,7,88 6. In the 6th year that the property is taxable, 37.5 percent.
AB489-ASA3,7,99 7. In the 7th year that the property is taxable, 25 percent.
AB489-ASA3,7,1010 8. In the 8th year that the property is taxable, 12.5 percent.
AB489-ASA3,7,1711 (d) For a production plant that is decommissioned as provided under s. 79.005
12(1h) (b) as a result of the plant being transferred in the 4th year that all power
13generation units of the plant permanently cease generating electricity, each
14municipality and county shall be paid, from the public utility account, an amount
15equal to the following percentages of the payment the municipality and county
16received under this section during the last year that the property was exempt from
17the property tax:
AB489-ASA3,7,1818 1. In the first year that the property is taxable, 100 percent.
AB489-ASA3,7,1919 2. In the 2nd year that the property is taxable, 86 percent.
AB489-ASA3,7,2020 3. In the 3rd year that the property is taxable, 72 percent.
AB489-ASA3,7,2121 4. In the 4th year that the property is taxable, 58 percent.
AB489-ASA3,7,2222 5. In the 5th year that the property is taxable, 44 percent.
AB489-ASA3,7,2323 6. In the 6th year that the property is taxable, 30 percent.
AB489-ASA3,7,2424 7. In the 7th year that the property is taxable, 16 percent.
AB489-ASA3,8,7
1(e) 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 5th year that all power
3generation units of the plant permanently cease generating electricity, each
4municipality and county shall be paid, from the public utility account, an amount
5equal to the following percentages of the payment the municipality and county
6received under this section during the last year that the property was exempt from
7the property tax:
AB489-ASA3,8,88 1. In the first year that the property is taxable, 100 percent.
AB489-ASA3,8,99 2. In the 2nd year that the property is taxable, 83 percent.
AB489-ASA3,8,1010 3. In the 3rd year that the property is taxable, 66 percent.
AB489-ASA3,8,1111 4. In the 4th year that the property is taxable, 49 percent.
AB489-ASA3,8,1212 5. In the 5th year that the property is taxable, 32 percent.
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