MDK:med:rs
2011 - 2012 LEGISLATURE
March 15, 2012 - Introduced by Representatives Hulsey, Clark and Pope-Roberts.
Referred to Committee on Energy and Utilities.
AB734,1,6 1An Act to repeal 196.378 (2) (b) 1o. a. and 1o. b.; to renumber and amend
2196.378 (2) (b) 1o. (intro.); to amend 196.378 (1) (dm), 196.378 (1) (h) 1m.,
3196.378 (1) (h) 1m., 196.378 (1) (m), 196.378 (2) (b) 1m. a. and 196.378 (2) (b)
41m. b.; and to repeal and recreate 196.378 (2) (b) 1m. a. and 196.378 (2) (b)
51m. b. of the statutes; relating to: treatment of hydroelectric power under the
6renewable portfolio standard.
Analysis by the Legislative Reference Bureau
Under current law, an electric utility or retail electric cooperative (electric
provider) is subject to certain requirements for ensuring that, in a given year, a
specified percentage of the electricity that the electric provider sells to retail
customers or members is derived from renewable resources. These requirements are
commonly referred to as the renewable portfolio standard (RPS). "Renewable
resource" is defined to include hydroelectric power. For purposes of determining
compliance with an RPS for a particular year, current law imposes requirements on
the counting of electricity generated from hydroelectric facilities that depend, in
part, on the capacity of the facility.
If an electric provider purchases electricity from a hydroelectric facility with a
capacity of less than 60 megawatts and provides the electricity to retail customers,
current law allows the electric provider to count all of the electricity in determining
compliance with an RPS. However, if an electric provider provides electricity to retail

customers from a hydroelectric facility with such a capacity that is owned or operated
by the electric provider, the electric provider my count all of the electricity only if the
facility was initially placed in service on or after January 1, 2004. If the facility was
initially placed in service prior to that date, an electric provider may count the
average output from the facility for the years 2001, 2002, and 2003, subject to certain
adjustments specified under current law.
Beginning on December 31, 2015, current law also allows an electric provider
to count electricity from a hydroelectric facility with a capacity of 60 megawatts or
more, regardless of whether the electric provider owns or operates such a facility.
However, electricity from such a facility may counted only if the facility was initially
placed in service on or after December 31, 2010. Also, if the facility is located in
Manitoba, Canada, the electricity may be counted only if: 1) the Province of
Manitoba informs the Public Service Commission in writing that final licenses have
replaced interim licenses for two specified hydroelectric projects located in the
province; and 2) those final licenses are in effect under Canadian law.
This bill prohibits an electric provider from counting, for purposes of
determining compliance with an RPS, electricity from a hydroelectric facility that is
not located within the United States. The bill does not otherwise change the
requirements under current law described above, except to eliminate the
requirements pertaining to a facility located in Manitoba, Canada.
For further information see the 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:
AB734, s. 1 1Section 1. 196.378 (1) (dm) of the statutes, as created by 2011 Wisconsin Act
234
, is amended to read:
AB734,2,53 196.378 (1) (dm) "Large hydroelectric facility" means an electric generating
4facility located within the United States with a capacity of 60 megawatts or more that
5derives electricity from hydroelectric power.
AB734, s. 2 6Section 2. 196.378 (1) (h) 1m. of the statutes is amended to read:
AB734,2,87 196.378 (1) (h) 1m. A resource located within the United States with a capacity
8of less than 60 megawatts that derives electricity from hydroelectric power.
AB734, s. 3 9Section 3 . 196.378 (1) (h) 1m. of the statutes, as affected by 2011 Wisconsin
10Act 34
, is amended to read:
AB734,3,2
1196.378 (1) (h) 1m. A resource located within the United States that derives
2electricity from hydroelectric power.
AB734, s. 4 3Section 4. 196.378 (1) (m) of the statutes, as created by 2011 Wisconsin Act 34,
4is amended to read:
AB734,3,75 196.378 (1) (m) "Small hydroelectric facility" means an electric generating
6facility located within the United States with a capacity of less than 60 megawatts
7that derives electricity from hydroelectric power.
AB734, s. 5 8Section 5. 196.378 (2) (b) 1m. a. of the statutes is amended to read:
AB734,3,139 196.378 (2) (b) 1m. a. The average of the amounts of hydroelectric power
10generated by facilities located within the United States owned or operated by the
11electric provider for 2001, 2002, and 2003, adjusted to reflect the permanent removal
12from service of any of those facilities and adjusted to reflect any capacity increases
13from improvements made to those facilities on or after January 1, 2004.
AB734, s. 6 14Section 6. 196.378 (2) (b) 1m. a. of the statutes, as affected by 2011 Wisconsin
15Acts 34
and .... (this act), is repealed and recreated to read:
AB734,3,2016 196.378 (2) (b) 1m. a. The average of the amounts of hydroelectric power
17generated by small hydroelectric facilities owned or operated by the electric provider
18for 2001, 2002, and 2003, adjusted to reflect the permanent removal from service of
19any of those facilities and adjusted to reflect any capacity increases from
20improvements made to those facilities on or after January 1, 2004.
AB734, s. 7 21Section 7. 196.378 (2) (b) 1m. b. of the statutes is amended to read:
AB734,3,2422 196.378 (2) (b) 1m. b. The amount of hydroelectric power generated in the
23reporting year by facilities located within the United States owned or operated by the
24electric provider that are initially placed in service on or after January 1, 2004.
AB734, s. 8
1Section 8. 196.378 (2) (b) 1m. b. of the statutes, as affected by 2011 Wisconsin
2Acts 34
and .... (this act), is repealed and recreated to read:
AB734,4,53 196.378 (2) (b) 1m. b. The amount of hydroelectric power generated in the
4reporting year by small hydroelectric facilities owned or operated by the electric
5provider that are initially placed in service on or after January 1, 2004.
AB734, s. 9 6Section 9. 196.378 (2) (b) 1o. (intro.) of the statutes, as created by 2011
7Wisconsin Act 34
, is renumbered 196.378 (2) (b) 1o. and amended to read:
AB734,4,118 196.378 (2) (b) 1o. An electric provider may count electricity derived from a
9large hydroelectric facility toward satisfying the requirements of par. (a) 2. only if the
10facility was initially placed in service on or after December 31, 2010, and, if the
11facility is located in Manitoba, Canada, all of the following are satisfied:
.
AB734, s. 10 12Section 10. 196.378 (2) (b) 1o. a. and 1o. b. of the statutes, as created by 2011
13Wisconsin Act 34
, are repealed.
AB734, s. 11 14Section 11. Effective dates. This act takes effect on the day after publication,
15except as follows:
AB734,4,1816 (1) The treatment of section 196.378 (1) (dm), (h) 1m. (by Section 3), and (m)
17and (2) (b) 1o. (intro.), a., and b. of the statutes and the repeal and recreation of
18section 196.378 (2) (b) 1m. a. and b. of the statutes take effect on December 31, 2015.
AB734,4,1919 (End)
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