AB174: Bill Text

The bill requires a person seeking to construct a battery energy storage system to obtain a CPCN from PSC. The bill defines a “battery energy storage system” as a device that occupies one acre or more and that captures energy produced at one time, stores it for future use, and later delivers it as electricity. The bill defines “large wind energy system” and “large solar energy system,” respectively, as a wind energy system or solar energy system with an electric generating capacity of 100 megawatts or more. Under current law, a person seeking to construct a large electric generating facility, specifically a facility designed with an electric generating capacity of at least 100 megawatts, must obtain a CPCN. The bill prohibits PSC from issuing a CPCN for a large wind energy system, large solar energy system, or battery energy storage system unless both of the following apply: 1) including the acres occupied by the system proposed by the applicant, the total amount of acres of land in the town in which the system is located that are occupied by large wind energy systems, large solar energy systems, or battery energy storage systems is not more than 2,000 acres; and 2) including the acres occupied by the system proposed by the applicant, the total amount of acres of land in the county in which the system is located that are occupied by large wind energy systems, large solar energy systems, or battery energy storage systems is not more than 5,000 acres.

Additionally, current law authorizes a city, village, town, or county (political subdivision) to restrict the installation or use of a wind energy system or solar energy system as long as the restriction serves to preserve or protect the public health or safety, does not significantly increase the cost of the system or significantly decrease its efficiency, and allows for an alternative system of comparable cost and efficiency. Current law also states that a political subdivision may not place a restriction on the installation or use of a wind energy system that is more restrictive than rules that PSC is required to promulgate on that subject. Current law defines “wind energy system” as equipment and associated facilities that convert and then store or transfer energy from the wind into usable forms of energy. and defines “solar energy system” as equipment that directly converts and then transfers or stores solar energy into usable forms of thermal or electrical energy.

The bill imposes certain requirements on a person seeking political subdivision approval or a CPCN for a large wind energy system, large solar energy system, or battery energy storage system. Specifically, the bill requires all of the following from a person seeking such approvals:

1. To submit with the application a decommissioning and site restoration plan, including a plan to clean, clear, and remove foundations from the site and to restore the land to its prior condition and a financial assurance obligation for the estimated cost of decommissioning.

2. To submit with the application a drainage plan, including plans to repair or replace any subsurface drainage affected during the construction or decommissioning of a large wind energy system, large solar energy system, or battery energy storage system.

3. To provide visual screening of a large solar energy system or battery energy storage system for certain nearby properties that have a residence within 250 feet of the system.

4. To make attempts to enter good neighbor agreements with owners of certain nearby properties.

5. To provide written notice, no later than 45 days before submitting a CPCN application, indicating interest in entering into an economic development agreement to each political subdivision in which the proposed facility would be located and take all commercially reasonable efforts to negotiate an economic development agreement with each political subdivision.

6. To provide written notice at least 45 days before submitting a CPCN application to each property owner located within one mile of a proposed facility, each political subdivision in which the proposed facility is proposed, and the American Indian tribal governing body for any land under that body’s jurisdiction that is within the project boundary.

7. To post notice of the proposed project at least 45 days before submitting a CPCN application by class 1 notice in the official state newspaper.

The bill requires PSC to create a pamphlet of not more than two pages, available on its website, that explains in plain language all provisions of the bill relating specifically to large wind energy systems, large solar energy systems, and battery energy storage systems, and requires PSC, if it receives a CPCN application for such a system, to distribute this pamphlet by mail or electronically to certain impacted property owners and to the political subdivision in which the project is proposed to be located.

Purchase of agricultural conservation easements required for large wind, solar, and battery systems

The bill also requires owners of large wind energy systems, large solar energy systems, and battery energy storage systems that are located on land that has a National Commodity Crop Productivity Index (NCCPI) of 0.6 or greater as identified by the Natural Resources Conservation Service of the U.S. Department of Agriculture (USDA) and that was prime farmland at the time that a CPCN was applied for for the system to purchase certain agricultural conservation easements before placing the system in service. Under the bill, “prime farmland” means land in use for an agricultural use or in use for a use that has agricultural value, including land that is part of a crop rotation or land enrolled in the USDA Conservation Reserve Program if the land is prime farmland, unique farmland, or additional farmland of statewide importance under the specifications of the USDA. An agricultural conservation easement prohibits the land subject to the easement from being developed for a use that would make the land unavailable or unsuitable for agricultural use.

Under the bill, an owner of a large wind energy system, large solar energy system, or battery energy storage system must purchase agricultural conservation easements on four acres of prime farmland for each acre of land on which the system is located that was prime farmland having an NCCPI of 0.8 or greater, and must purchase such easements on two acres of prime farmland for each acre of land on which the system is located that was prime farmland having an NCCPI of not less than 0.6 and not more than 0.8 or that was unique farmland or additional farmland of statewide importance. The bill requires an owner to make commercially reasonable efforts to purchase agricultural conservation easements on acres of prime farmland in the following order of priority: 1) acres adjacent to the system and owned by an owner-operator; 2) acres located in the same county as the system and owned by an owner-operator; 3) acres located in an adjacent county and owned by an owner-operator; 4) acres adjacent to the system; 5) acres located in the same county as the system; 6) acres located in an adjacent county; and 7) acres located in this state. Under the bill, an “owner-operator” is a person who owns land and who materially participates in a trade or business that engages in an agricultural use on that land. The purchase cost of an agricultural conservation easement required under the bill is $2,500 for each acre, and is paid to the landowner in equal payments made over five years.

Under the bill, an application to PSC for a CPCN for a proposed large wind energy system, large solar energy system, or battery energy storage system must include proof that the applicant has entered into contracts for the purchase of agricultural conservation easements required by the bill. The bill also requires the agricultural conservation easements to include a provision that authorizes the Department of Agriculture, Trade and Consumer Protection, on behalf of the state, to bring actions to enforce or defend the easements. The bill prohibits large wind energy systems, large solar energy systems, and battery energy storage systems from being separated into multiple systems to decrease the nominal capacity of each system below 100 megawatts to construct the systems without purchasing the agricultural conservation easements required by the bill.

Nuclear energy as a state policy priority

The bill establishes as state policy that nuclear energy is a high-priority option, second only to energy efficiency and conservation, to be considered in meeting the state’s energy demands, over noncombustible renewable energy resources and combustible renewable energy resources. Under current law, it is the goal of the state that, to the extent it is cost effective and technically feasible, all new installed capacity for electric generation be based on renewable energy resources. The bill adds nuclear energy to this focus, along with renewable energy. Current law also provides that, in designing all new and replacement energy projects, a state agency or local governmental unit must rely to the greatest extent feasible on energy efficiency improvements and renewable energy resources if those are cost effective, are technically feasible, and do not have unacceptable environmental impacts. The bill adds nuclear energy resources to this list of prioritized resources.

Current law requires the Department of Administration to establish renewable energy percentage goals for certain state agencies to meet in 2007 and 2011 and then to submit a report to the governor and the legislature each March 1 concerning the degree of attainment of those goals during the preceding year. Under the bill, beginning in 2026, those reports must include nuclear energy in the definition of “renewable resource” for the purpose of that report.

The bill expands current laws that govern state renewable resource goals and renewable resource credits to include as an eligible resource one that derives electricity from nuclear power. The bill changes the terminology in these laws to use the term “low-carbon-emission” instead of “renewable.”

Light-Mitigating technology systems

The bill imposes lighting requirements on certain wind energy systems and high-voltage transmission line towers. Under the bill, such structures placed in service on or after the effective date of the bill must have a light-mitigating technology system (LMTS) installed; an LMTS is triggered by aircraft detection or otherwise reduces the impact of lighting necessary to make tall structures conspicuous to aircraft to avoid collisions. The bill applies to wind energy systems and high-voltage transmission line towers that meet the criteria for which construction or alteration would be subject to Federal Aviation Administration notice requirements, including a structure that is more than 200 feet above ground level (utility structures).

Current law prohibits the erection of any building, structure, tower, or other object that exceeds specified heights without a permit issued by the Department of Transportation (height permit). The bill extends this height permit requirement to any utility structure. However, DOT may not issue a height permit for a utility structure unless the applicant has received FAA approval to install an LMTS on the utility structure and the height permit includes as a condition that the applicant install the LMTS no later than 24 months after issuance of the permit. Current DOT rules implementing height permits govern enforcement of height permit requirements and conditions, including penalties and possible revocation.

The bill requires that a person be approved by FAA to install an LMTS on a utility structure. The bill specifies that a person who is selected to install an LMTS on a utility structure as required under the bill must provide notice to DOT and to the city, village, or town in which the utility structure is located of the progress of the installation. If the installation is delayed beyond the 24-month installation requirement, the bill requires the installer to provide an update on the reasons for the delay and the current status of the installation to DOT and the city, village, or town at least every three months. The bill allows DOT to establish policies and procedures to set a uniform schedule for submitting these notices and updates.

Also, the bill requires the owner of a utility structure that is placed in service before the bill’s effective date and for which DOT has issued a height permit to submit a report to PSC no later than July 1, 2026, on the commercial feasibility of installing an LMTS on the utility structure.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

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

AB174,1 Section 1. 1.12 (3) (b) of the statutes is amended to read:

AB174,3,6 1.12 (3) (b) Renewable and nuclear energy resources. It is the goal of the state that, to the extent that it is cost-effective and technically feasible, all new installed capacity for electric generation in the state be based on renewable energy resources, including hydroelectric, wood, wind, solar, refuse, agricultural and biomass energy resources, or nuclear energy.

AB174,2 Section 2. 1.12 (4) (cm) of the statutes is renumbered 1.12 (4) (am).

AB174,3 Section 3. 1.12 (5) (a) of the statutes is amended to read:

AB174,3,14 1.12 (5) (a) In designing all new and replacement energy projects, a state agency or local governmental unit shall rely to the greatest extent feasible on energy efficiency improvements and renewable or nuclear energy resources, if the energy efficiency improvements and renewable or nuclear energy resources are cost-effective and technically feasible and do not have unacceptable environmental impacts.

AB174,4 Section 4. 13.94 (1) (q) of the statutes is created to read:

AB174,4,2 13.94 (1) (q) Conduct audits under s. 196.485 (3r) (c) 1. of 15 percent of transmission facility contracts related to each certificate issued under s. 196.491 (3) that are required to be competitively bid under s. 196.485 (3r) (b), and as the joint legislative audit committee directs, conduct audits of other transmission facility contracts that are required to be competitively bid under s. 196.485 (3r) (b).

AB174,5 Section 5. 16.75 (12) (a) 4. of the statutes is amended to read:

AB174,4,7 16.75 (12) (a) 4. “Renewable Except as provided under par. (e), “renewable resource” has the meaning given in s. 196.378 (1) (h) 1., 1m., or 2. and includes a resource, as defined in s. 196.378 (1) (j), that derives electricity from hydroelectric power.

AB174,6 Section 6. 16.75 (12) (e) of the statutes is renumbered 16.75 (12) (e) 2.

AB174,7 Section 7. 16.75 (12) (e) 1. of the statutes is created to read:

AB174,4,11 16.75 (12) (e) 1. Beginning in 2026, and only for purposes of the report under this paragraph, “renewable resources” also includes nuclear energy resources.

AB174,8 Section 8. 66.0401 (1e) (a) of the statutes is renumbered 66.0401 (4) (ag) and amended to read:

AB174,4,16 66.0401 (4) (ag) “Application In this subsection, “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.

AB174,9 Section 9. 66.0401 (1e) (am), (bk), (bL), (bm), (bn), (bo), (br), (cm) and (cs) of the statutes are created to read:

AB174,4,20 66.0401 (1e) (am) “Battery energy storage system” has the meaning given in s. 196.491 (1) (ar).

AB174,4,22 (bk) “Large solar energy system” means a solar energy system designed for nominal operation at a capacity of 100 megawatts or more.

AB174,4,24 (bL) “Large wind energy system” means a wind energy system designed for nominal operation at a capacity of 100 megawatts or more.

AB174,5,2 (bm) “Nonparticipating property” means real property that is not a participating property.

AB174,5,4 (bn) “Nonparticipating residence” means a residence located on nonparticipating property.

AB174,5,6 (bo) “Occupied community building” means a school, church or similar place of worship, a daycare facility, or a public library.

AB174,5,8 (br) “Participating property” means real property that is the subject of an agreement that does all of the following:

AB174,5,11 1. Provides for the payment of monetary compensation to the landowner from an owner regardless of whether any part of a wind energy system is constructed on the property.

AB174,5,14 2. Specifies in writing any waiver of a requirement or right under this section or rules promulgated thereunder and that the landowner’s acceptance of payment establishes the landowner’s property as a participating property.

AB174,5,21 (cm) “Residence” means a primary or secondary personal residence that is occupied on the date that an application for approval of a wind energy system or solar energy system is filed under this section or s. 196.491 (3), including a manufactured home as defined in s. 101.91 (2), a hospital, community-based residential facility, residential care apartment complex, or similar facility, or a nursing home. “Residence” includes a temporarily unoccupied primary or secondary personal residence. “Residence” does not include any of the following:

AB174,5,23 1. A recreational vehicle, as defined in s. 340.01 (48r), notwithstanding the length of the vehicle.

AB174,5,24 2. A camping trailer, as defined in s. 340.01 (6m).

AB174,6,1 3. A permanently abandoned personal residence.

AB174,6,3 (cs) “Solar energy system” means a solar energy system as defined under s. 13.48 (2) (h) 1. g.

AB174,10 Section 10. 66.0401 (1m) (intro.) of the statutes is amended to read:

AB174,6,11 66.0401 (1m) Authority to restrict systems limited. (intro.) No 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, unless the restriction satisfies one of the following conditions:

AB174,11 Section 11. 66.0401 (4) (a) of the statutes is renumbered 66.0401 (4) (am).

AB174,12 Section 12. 66.0401 (5) (a) and (e) of the statutes are amended to read:

AB174,6,18 66.0401 (5) (a) A decision of a political subdivision to determine that an application is incomplete under sub. (4) (a) (am) 1., or to approve, disapprove, or impose a restriction upon a wind energy system, or an action of a political subdivision to enforce a restriction on a wind energy system, may be appealed only as provided in this subsection.

AB174,6,23 (e) In conducting a review under par. (d), the commission may treat a political subdivision’s determination that an application under sub. (4) (a) (am) 1. is incomplete as a decision to disapprove the application if the commission determines that a political subdivision has unreasonably withheld its determination that an application is complete.

AB174,13 Section 13. 66.0401 (7) to (12) of the statutes are created to read:

AB174,7,5 66.0401 (7) Decommissioning of large wind, large solar, and battery energy systems. A person who submits an application for approval of a large wind energy system, large solar energy system, or battery energy storage system under this section or s. 196.491 (3) shall submit with the application a decommissioning and site restoration plan that includes all of the following:

AB174,7,19 (a) A plan to clear, clean, and remove the foundations of the large wind energy system, solar energy system, or battery energy storage system from the ground to a depth of at least 3 feet below the surface grade of the land in which the foundations are installed on the site within 18 months from the date the large wind energy system, large solar energy system, or battery energy storage system ceases operations, unless otherwise agreed to by the property owner. The date the large wind energy system, large solar energy system, or battery energy storage system ceases operation is the date on which the system is no longer capable of generating or storing electricity in commercial quantities, except when such inability to generate or store electricity is the result of an event of force majeure or when the grantee is in the process of repairing the wind energy system, solar energy system, or battery energy storage system, provided that, in either case, the large wind energy system, large solar energy system, or battery energy storage system resumes generating or storing electricity in commercial quantities within 180 days.

AB174,7,21 (b) A plan to restore the land to a reasonably similar condition as prior to the commencement of construction.

AB174,8,5 (c) A financial assurance obligation in an amount equal to the estimated cost of decommissioning the large wind energy system, large solar energy system, or battery energy storage system less the salvage value of the components, as calculated by a 3rd-party licensed engineer. This amount shall be provided in a surety bond, irrevocable line of credit, parent company guarantee, or similar instrument and shall be posted by the 15th anniversary of the start of operations of the large wind energy system, large solar energy system, or battery energy storage system.

AB174,8,15 (8) Visual screening. At the request of the owner of nonparticipating property and prior to the start of operations, a person who has received a certificate of public convenience and necessity under s. 196.491 (3) for a large solar energy system or battery energy storage system and the participating property owner shall, at their joint expense, provide visual screening for nonparticipating residences within 250 feet of the above-ground components of the large solar energy system or battery energy storage system, with a maximum cost of $1,500 per property line. The visual screening may be erected by the large solar energy system owner or battery energy storage system owner, as applicable, or provided as a one- time payment-in-lieu directly to the nonparticipating property owner.

AB174,8,23 (9) Good neighbor agreements. (a) Within 120 days of submitting an application for any approval of a large wind energy system, large solar energy system, or battery energy storage system under this section or s. 196.491 (3), the person proposing the large wind energy system, large solar energy system, or battery energy storage system or that person’s representative shall make no less than three attempts to meet with nonparticipating property owners to disclose and discuss the project and enter into any contractual agreements, unless advised by the contacted property owner to cease contact attempts.

AB174,9,2 (b) An attempt under par. (a) may be made in-person, electronically, or via certified mail.

AB174,9,7 (c) A person proposing a large wind energy system, large solar energy system, or battery energy storage system shall make commercially reasonable attempts to reach agreements with nonparticipating property owners, and nonparticipating property owners shall accept or deny any such contractual agreements no later than 45 days after receiving an offer.

AB174,9,11 (d) Payments made pursuant to a contractual agreement under par. (c) shall be contingent upon the person proposing the project receiving all required approvals for construction of the large wind energy system, large solar energy system, or battery energy storage system.

AB174,9,19 (10) Economic development agreements. (a) No later than 45 days before a person submits an application for approval of a large wind energy system, large solar energy system, or battery energy storage system under s. 196.491 (3), if required, the person shall submit a written notice indicating the person's interest in entering into an economic development agreement to each political subdivision in which the proposed facility would be located and shall take all commercially reasonable efforts to negotiate an economic development agreement with each political subdivision.

AB174,9,21 (b) An economic development agreement under this subsection may include any of the following:

AB174,9,22 1. Setbacks and screening from occupied community buildings.

AB174,9,23 2. Road use agreements.

AB174,9,24 3. Decommissioning.

AB174,10,1 4. Drainage infrastructure.

AB174,10,2 5. First responder services and communication.

AB174,10,3 6. Planning and coordination of construction activities.

AB174,10,5 (c) Failure to reach an agreement may not be used as justification for denial of any approval under this section or s.196.491 (3).

AB174,10,10 (11) Drainage plan. A person who seeks approval of a large wind energy system, large solar energy system, or battery energy storage system under this section or s. 196.491 (3) shall submit with its application a drainage plan, which shall include plans to repair or replace any subsurface drainage affected during the construction or decommissioning of the system.

AB174,10,15 (12) Information for property owners and political subdivisions. (a) The public service commission shall create a pamphlet of not more than 2 pages, available on its website, that explains in plain language all provisions under this section and s. 196.491 (3) that relate specifically to large wind energy systems, large solar energy systems, and battery energy storage systems.

AB174,10,21 (b) If the commission receives an application for a certificate of public convenience and necessity under s. 196.491 (3) for a large wind energy system, large solar energy system, or battery energy storage system, the commission shall distribute the pamphlet under par. (a) by mail or electronically to any owner of property on which or adjacent to which the project is proposed to be located and any political subdivision in which the project is proposed to be located.

AB174,14 Section 14. 66.0627 (1) (bk) 2. of the statutes is amended to read:

AB174,11,2 66.0627 (1) (bk) 2. An improvement to a premises that allows for the small scale derivation of electricity from a renewable low-carbon-emission resource listed under s. 196.378 (1) (h).

AB174,15 Section 15. 93.74 of the statutes is created to read:

AB174,11,5 93.74 Purchase of agricultural conservation easements required for large wind, large solar, and battery systems. (1) Definitions. In this section: