LRB-0193/1
RCT:wlj:sh
2007 - 2008 LEGISLATURE
March 12, 2007 - Introduced by Representatives Black, Boyle, Molepske, Hebl,
Berceau, Parisi, Hilgenberg, Sinicki, Pocan, Benedict, Pope-Roberts
and
Smith, cosponsored by Senators Miller, Erpenbach, Risser and Lehman.
Referred to Committee on Natural Resources.
AB157,1,3 1An Act to amend 299.95; and to create 15.347 (5), 15.347 (6), 20.370 (2) (cj) and
2chapter 286 of the statutes; relating to: management of greenhouse gases,
3granting rule-making authority, and providing penalties.
Analysis by the Legislative Reference Bureau
This bill provides for the management of emissions of specified greenhouse
gases, including carbon dioxide. Greenhouse gases are gases that trap heat in the
atmosphere. The bill treats greenhouse gas emissions from the generation of
electricity that is generated outside this state but is used in this state as though the
emissions occurred in this state.
Initial requirements
The bill requires the Department of Natural Resources (DNR) to promulgate
rules requiring the monitoring and reporting of greenhouse gas emissions by
significant sources of those emissions. DNR must phase in the requirements
beginning with the types of sources that emit the most greenhouse gases.
The bill requires DNR to determine the level of greenhouse gas emissions in
this state in 1990 (including emissions from the generation of all electricity used in
this state) and to set a statewide greenhouse gas emission limit for 2020 that is
equivalent to the 1990 level. The deadline for setting the limit is January 1, 2009.
The bill requires DNR to identify measures for reducing greenhouse gas
emissions that can be implemented before the full planning and rule-making process
described below. DNR must then make rules implementing the interim measures,
to take effect no later than January 1, 2011.

Long-term planning and rule making
The bill requires DNR to approve a plan, no later than January 1, 2010, for
achieving reductions of greenhouse gas emissions that are technologically feasible
and cost-effective. The bill authorizes DNR to make recommendations concerning
various methods of achieving reductions in greenhouse gas emissions, the methods
include mandating specific actions to be taken, allowing greenhouse gas emission
sources to implement alternative methods to specific actions that would otherwise
be mandated, and authorizing the use of what are called market-based compliance
mechanisms.
The bill requires DNR to promulgate rules, to take effect no later than January
1, 2013, specifying greenhouse gas emission limits and measures to achieve
greenhouse gas emission reductions, in furtherance of achieving the statewide
greenhouse gas emission limit. The bill imposes several requirements on DNR
relating to the rules, for example, to design the rules in a manner that is equitable
and seeks to minimize costs and maximize benefits, to give credit to emission sources
that voluntarily reduce emissions before the rules take effect, to ensure that
emissions of certain air pollutants do not increase, and to limit the extent to which
reductions in emissions in this state are offset by increases in emissions outside the
state.
The bill includes specific prerequisites to including market-based compliance
mechanisms in the rules. Market-based compliance mechanisms include
arrangements under which a source that would otherwise be required to reduce its
emissions by a specified amount instead satisfies the requirement by buying
emission credits from a source, which may be outside of the state, that reduces its
emissions by more than is otherwise required.
Governor's authority
The bill allows the governor to extend deadlines in the bill or in rules
promulgated under the bill in the event of extraordinary circumstances, catastrophic
events, or threat of significant economic harm. Each extension may not exceed one
year, but the governor may make additional extensions.
Other provisions
The bill provides civil and criminal penalties for violations of the greenhouse
gas management provisions. The penalties are the same as under the current air
quality laws.
The bill authorizes DNR to impose fees on greenhouse gas emission sources
that are regulated under the bill. The bill also requires state agencies to take actions
to reduce their greenhouse gas emissions.
The bill creates two bodies to advise DNR about greenhouse gas management.
These are the Greenhouse Gas Management Environmental Justice Council and the
Greenhouse Gas Management Economic and Technology Advancement Council.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.

For further information see the state and local 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:
AB157, s. 1 1Section 1. 15.347 (5) of the statutes is created to read:
AB157,3,92 15.347 (5) Greenhouse gas management environmental justice council.
3There is created in the department of natural resources a greenhouse gas
4management environmental justice council consisting of at least 3 members,
5appointed by the secretary of natural resources from nominations received from
6environmental justice organizations and community groups, representing
7communities that have the most significant exposure to air pollutants, including
8communities with minority populations and communities with low-income
9populations.
AB157, s. 2 10Section 2. 15.347 (6) of the statutes is created to read:
AB157,3,1411 15.347 (6) Greenhouse gas management economic and technology
12advancement council.
There is created in the department of natural resources a
13greenhouse gas management economic and technology advancement council
14consisting of members appointed by the secretary of natural resources.
AB157, s. 3 15Section 3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
16the following amounts for the purposes indicated: - See PDF for table PDF
AB157, s. 4
1Section 4. 20.370 (2) (cj) of the statutes is created to read:
AB157,4,42 20.370 (2) (cj) Greenhouse gas management. The amounts in the schedule for
3greenhouse gas management activities under ch. 286. All moneys received under s.
4286.35 shall be credited to this appropriation account.
AB157, s. 5 5Section 5. Chapter 286 of the statutes is created to read:
AB157,4,76 Chapter 286
7 Greenhouse gas management
AB157,4,8 8286.01 Definitions. In this chapter:
AB157,4,10 9(1) "Allowance" means an authorization to emit, during a specified year, up to
10one ton of carbon dioxide equivalent.
AB157,4,16 11(2) "Alternative compliance mechanism" means an action, including a flexible
12compliance schedule, alternative control technology, process change, or product
13substitution, undertaken by a greenhouse gas emission source that is approved by
14the department and that achieves an equivalent reduction of greenhouse gas
15emissions over the same period as a specific action that would otherwise be required
16under this chapter.
AB157,4,19 17(3) "Carbon dioxide equivalent" means the amount of carbon dioxide by weight
18that would produce the same impact on global warming as a given weight of another
19greenhouse gas.
AB157,4,21 20(3m) "Carbon sequestration" means the long-term storage of carbon in water
21bodies, soil, vegetation, or geologic formations.
AB157,4,23 22(4) "Cost-effective" means economical in terms of cost per unit of reduced
23emissions of greenhouse gases expressed in carbon dioxide equivalents.
AB157,4,24 24(5) "Department" means the department of natural resources.
AB157,5,3
1(6) "Direct emission reduction action" means an action to reduce greenhouse
2gas emissions taken by a greenhouse gas emission source at the greenhouse gas
3emission source.
AB157,5,8 4(7) "Emission reduction measure" means a program, action, standard, or
5alternative compliance mechanism authorized under this chapter, applicable to a
6greenhouse gas emission source or category of greenhouse gas emission sources, that
7is designed to reduce greenhouse gas emissions or to remove carbon from the
8atmosphere.
AB157,5,10 9(8) "Greenhouse gas" means carbon dioxide, methane, nitrous oxide,
10hydrofluorocarbons, perfluorocarbons, and sulfur hexaflouride.
AB157,5,13 11(9) "Greenhouse gas emission limit" means an authorization by the
12department to emit up to a specified amount of greenhouse gas, expressed in carbon
13dioxide equivalents, during a specified year.
AB157,5,15 14(10) "Greenhouse gas emission source" means a source of greenhouse gas
15emissions.
AB157,5,16 16(11) "Market-based compliance mechanism" means any of the following:
AB157,5,1817 (a) A system of market-based declining annual aggregate emission limitations
18for significant sources or categories of significant sources.
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