Wis. Stat. § 196.378

Renewable resources

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196.378 Renewable resources. (1) DEFINITIONS. In this section: (ag) “Baseline renewable percentage” means the average of an energy provider’s renewable energy percentage for 2001, 2002, and 2003. (am) “Biomass cofired facility” means a renewable facility in which biomass and conventional resources are fired together. (ar) “Biomass” means a resource that derives energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. “Biomass” does not in- clude garbage, as defined in s. 289.01 (9), or nonvegetation-based industrial, commercial or household waste, except that “biomass” includes refuse-derived fuel used for a renewable facility that was in service before January 1, 1998. (b) “Conventional resource” means a resource that derives en- ergy from coal, oil, nuclear power or natural gas, except for natu- ral gas used in a fuel cell. (c) “Electric provider” means an electric utility or retail elec- tric cooperative. (d) “Electric utility” means a public utility that sells electric- ity at retail. For purposes of this paragraph, a public utility is not considered to sell electricity at retail solely on the basis of its ownership or operation of a retail electric distribution system. (dm) “Large hydroelectric facility” means an electric generat- ing facility with a capacity of 60 megawatts or more that derives electricity from hydroelectric power. (fg) “Renewable energy” means electricity derived from a re- newable resource. (fm) “Renewable energy percentage” means, with respect to an electric provider for a particular year, the percentage that re- sults from dividing the sum of the megawatt hours represented by the following by the total amount of electricity that the electric provider sold to retail customers or members in that year: 1. The renewable resource credits created from the electric provider’s total renewable energy in that year. 2. Any renewable resource credits in addition to the renew- able resource credits specified in subd. 1. that the electric provider elects to use in that year. (fr) “Renewable energy supplier” means a person from whom an electric provider purchases renewable energy at wholesale. (g) “Renewable facility” means an installed and electric generating facility, located in or outside this generates renewable energy. (h) “Renewable resource” means any of the following: 1. A resource that derives electricity from any of the following: a. A fuel cell that uses, as determined by the commission, a renewable fuel. b. Tidal or wave action. c. Solar thermal electric or photovoltaic energy. d. Wind power. e. Geothermal technology. mulgated under sub. (4). (i) “Renewable resource credit” means a credit calculated in accordance with rules promulgated under sub. (3) (a) 1., 1m., and 2. (j) “Resource” means a source of energy used to generate electric power. (k) “Retail electric cooperative” means a cooperative associa- tion organized under ch. 185 that sells electricity at retail to its members only. For purposes of this paragraph, a cooperative as- sociation is not considered to sell electricity at retail solely on the basis of its ownership or operation of a retail electric distribution system. (m) “Small hydroelectric facility” means an electric generat- ing facility with a capacity of less than 60 megawatts that derives electricity from hydroelectric power. (o) “Total renewable energy” means the total amount of re- newable energy that the electric provider sold to its customers or members in a year. “Total renewable energy” does not include any energy that is used to comply with the renewable energy re- quirements of another state. “Total renewable energy” includes all of the following: 1. Renewable energy supplied by a renewable facility owned or operated by an affiliated interest or wholesale supplier of an electric provider and allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier. 2. Renewable energy purchased by an affiliated interest or wholesale supplier of an electric provider from a renewable facil- ity that is not owned or operated by the affiliated interest or wholesale supplier, which renewable energy is allocated to the electric provider under an agreement between the electric provider and the affiliated interest or wholesale supplier. (p) “Wholesale supplier” has the meaning given in s. 16.957 (1) (w). (2) RENEWABLE RESOURCE ENERGY. (a) 1. No later than June 1, 2016, the commission shall prepare a report stating whether, by December 31, 2015, the state has met a goal of 10 percent of all electric energy consumed in the state being renew- able energy. If the goal has not been achieved, the report shall in- dicate why the goal was not achieved and how it may be achieved, and the commission shall prepare similar reports biennially operational thereafter until the goal is achieved. The commission shall sub- state, that mit reports under this subdivision to the governor and chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2). 2. Except as provided in pars. (e), (f), and (g): a. For the years 2006, 2007, 2008, and 2009, each electric provider may not decrease its renewable energy percentage below the electric provider’s baseline renewable percentage. b. For the year 2010, each electric provider shall increase its renewable energy percentage so that it is at least 2 percentage points above the electric provider’s baseline renewable percentage.

2023-24 Wisconsin Statutes updated through 2025 Wis. Act 137 and through all Supreme Court Orders and Controlled Sub- stances Board Orders filed before and in effect on May 13, 2026. Published and certified under s. 35.18. Changes effective after May 13, 2026, are designated by NOTES. (Published 5-13-26)

c. For the years 2011, 2012, 2013, and 2014, each electric with a requirement under par. (a) 2. or to create a credit under provider may not decrease its renewable energy percentage below sub. (3) (a), provided that the cost of the renewable energy is in- the electric provider’s renewable energy percentage required un- cluded in the price the electric provider paid the renewable en- der subd. 2. b. ergy supplier. d. Except as provided in subd. 2. f., for the year 2015, each (bm) Each electric provider shall annually retire renewable re- electric provider shall increase its renewable energy percentage source credits sufficient to satisfy the electric provider’s renew- so that it is at least 6 percentage points above the electric able energy percentage required under par. (a) 2. provider’s baseline renewable percentage. (c) No later than April 15 annually, or another annual date e. Except as provided in subd. 2. f., for each year after 2015, specified by the commission by rule, an electric provider shall each electric provider may not decrease its renewable energy per- submit a report to the commission that identifies the electric centage below the electric provider’s renewable energy percent- provider’s renewable energy percentage for the previous year and age required under subd. 2. d. describes the electric provider’s compliance with par. (a) 2. and f. If an electric provider has a baseline renewable percentage the electric provider’s implementation plans for future compli- that exceeds 12 percent and a renewable energy percentage that ance. Reports under this paragraph may include certifications exceeds 14 percent for the year 2014, the electric provider shall from renewable energy suppliers regarding the sources and maintain its renewable energy percentage in the years 2015 and amounts of renewable energy supplied to the electric provider. thereafter at a level that is at least 2 percentage points above its The commission may specify the documentation that is required baseline renewable percentage. to be included with reports submitted under this paragraph. The commission may require that electric providers submit the re- (b) For purposes of determining compliance with par. (a): ports in a proceeding, initiated by the commission under this sec- 1. The total amount of electricity that an electric provider tion relating to the implementation of s. 1.12, or in a proceeding sold to retail customers or members in a year shall be calculated for preparing a strategic energy assessment under s. 196.491 (2). on the basis of an average of the electric provider’s retail electric No later than 90 days after the commission’s receipt of an electric sales in this state during the prior 3 years. provider’s report, the commission shall inform the electric 1m. The amount of electricity derived from small hydroelec- provider whether the electric provider is in compliance with par. tric facilities that an electric provider may count toward satisfying (a) 2. the requirements of par. (a) 2. shall be all electricity provided by (d) The commission shall allow an electric utility to recover such facilities that the electric provider purchased in the reporting from ratepayers the cost of providing total renewable energy to its year plus all of the following: retail customers in amounts that equal or exceed the percentages a. The average of the amounts of hydroelectric power gener- specified in par. (a). Subject to any approval of the commission ated by small hydroelectric facilities owned or operated by the that is necessary, an electric utility may recover costs under this electric provider for 2001, 2002, and 2003, adjusted to reflect the paragraph by any of the following methods: permanent removal from service of any of those facilities and ad- 1. Allocating the costs equally to all customers on a kilowatt- justed to reflect any capacity increases from improvements made hour basis. to those facilities on or after January 1, 2004. 2. Establishing alternative price structures, including price b. The amount of hydroelectric power generated in the re- structures under which customers pay a premium for renewable porting year by small hydroelectric facilities owned or operated energy. by the electric provider that are initially placed in service on or 3. Any combination of the methods specified in subds. 1. and after January 1, 2004. 2. 1o. An electric provider may count electricity derived from a (e) An electric provider, or a wholesale supplier for its mem- large hydroelectric facility toward satisfying the requirements of bers, may request that the commission grant a delay for comply- par. (a) 2. only if the facility was initially placed in service on or ing with a deadline specified in par. (a) 2. The commission shall after December 31, 2010, and, if the facility is located in Mani- hold a hearing on the request and, if requested by the electric toba, Canada, all of the following are satisfied: provider or wholesale supplier, treat the matter as a contested a. The province of Manitoba has informed the commission in case. The commission shall grant a delay if the commission de- writing that the interim licenses under which the Lake Winnipeg termines that the applicant has demonstrated good faith efforts to Regulation Project and the Churchill River Diversion Project comply with the deadline and that any of the following applies: were operating on December 31, 2015 have been replaced by fi- 1. Notwithstanding reasonable efforts to protect against un- nal licenses. desirable impacts on the reliability of an electric provider’s sys- b. The final licenses specified in subd. 1o. a. are in effect un- tem, compliance with the deadline will have an undesirable im- der Canadian law. pact on the reliability of the applicant’s system. 2. The amount of electricity supplied by a biomass cofired 2. Notwithstanding reasonable efforts to protect against un- facility that may be counted toward satisfying the requirements of reasonable increases in rates of the applicant’s ratepayers or par. (a) shall be an amount equal to the product of the maximum members, compliance with the deadline will result in unreason- amount of electricity that the facility is capable of generating and able increases in rates of the applicant’s ratepayers or members, the ratio of the energy content of the biomass fuels to the energy including increases that are due to the discontinuation of federal content of both the biomass and conventional resources. renewable energy tax credits or other federal policies intended to 4. A wholesale supplier may sell credits that it creates and reduce the acquisition costs of renewable energy. may aggregate and allocate the credits that it creates among its 3. Notwithstanding reasonable efforts to obtain required ap- members or customers. A member or customer may sell credits provals, the applicant cannot comply with the deadline because or portions of a credit allocated to the member or customer by the the applicant or a supplier has experienced or will experience de- wholesale supplier. lays in receiving required siting or permitting approvals for re- 5. An electric provider that purchases renewable energy from newable energy projects. a renewable energy supplier may use an allocated share of the re- 4. Notwithstanding reasonable efforts to secure transmission newable energy sold by the renewable energy supplier to comply service, the applicant cannot comply with the deadline because

196.378 REGULATION OF PUBLIC UTILITIES

the applicant faces transmission constraints that interfere with the this subdivision regardless of when the source used to create the economic and reliable delivery of renewable energy to the appli- credit was placed in service. The rules may not allow an electric cant’s system. provider to create renewable resource credits under this subdivi- (f) A wholesale electric cooperative for its members or a mu- sion based on renewable energy upon which renewable resource nicipal electric company for its members may delay compliance credits are created under subd. 1. The rules may also not allow an with a deadline specified in par. (a) 2. for any reason specified in electric provider to create renewable resource credits under this par. (e) 1. to 4. A wholesale electric cooperative or a municipal subdivision based on hydroelectric energy that is not eligible for electric company that delays compliance with a deadline speci- creating renewable resource credits under subd. 1. fied in par. (a) 2. shall inform the commission of the delay and the 2. The commission shall promulgate rules for calculating the reason for the delay, and shall submit information to the commis- amount of a renewable resource credit that is bankable from a re- sion demonstrating that, notwithstanding good faith efforts by the newable facility placed into service before January 1, 2004. The wholesale electric cooperative or municipal electric company and amount of a bankable renewable resource credit created on or af- its members, the members cannot meet the deadline for the stated ter January 1, 2004, from such a renewable facility, except a re- reason. newable facility owned by a retail customer of an electric (g) 1. In this paragraph, “energy consumer advocacy group” provider, is limited to the incremental increase in output from the means a group or organization that advocates on behalf of its renewable facility that is due to capacity improvements made on members’ interests regarding the cost, availability, and reliability or after January 1, 2004. of energy or regarding utility regulation. (b) The commission may promulgate rules that establish re- 2. An energy consumer advocacy group may request that the quirements and procedures for a sale under par. (a) 1. commission grant to an electric provider that serves one or more (c) A renewable resource credit created under s. 196.378 (3) members of the group a delay for complying with a deadline (a), 2003 stats., may not be used after December 31, 2011. A re- specified in par. (a) 2. The commission shall hold a hearing on newable resource credit created under par. (a) 1., 1m., or 2. may the request and, if requested by the energy consumer advocacy not be used after the 4th year after the year in which the credit is group, treat the matter as a contested case. The commission shall created, except the commission may promulgate rules specifying grant a delay if the commission determines that the utility has a different period of time if the commission determines that such demonstrated good faith efforts to comply with the deadline and period is necessary for consistency with any regional renewable that any of the conditions in par. (e) 1. to 4. apply. resource credit trading program that applies in this state. (3) RENEWABLE RESOURCE CREDITS. (a) 1. Each megawatt (4) RENEWABLE RESOURCE RULES. The commission may hour of an electric provider’s total renewable energy creates one promulgate rules that designate a resource, except for a conven- renewable resource credit for the electric provider. Subject to tional resource, as a renewable resource in addition to the re- subd. 2., an electric provider that exceeds its renewable energy sources specified in sub. (1) (h) 1. and 1m. percentage required under sub. (2) (a) 2. may, in the applicable year, bank any excess renewable resource credits or any portion (4g) WIND ENERGY SYSTEMS. (a) In this subsection: of any excess renewable resource credit for use in a subsequent 1. “Application for approval” has the meaning given in s. year or sell any excess renewable resource credits or any portion 66.0401 (1e) (a). of any excess renewable resource credit to any other electric 2. “Decommissioning” means removing wind turbines, provider at any negotiated price. An electric provider that creates buildings, cables, electrical components, roads, and any other fa- or purchases a renewable resource credit or portion may use the cilities associated with a wind energy system that are located at credit or portion, as provided under par. (c), to establish compli- the site of the wind energy system and restoring the site of the ance with sub. (2) (a) 2. The commission shall promulgate rules wind energy system. that establish requirements for the creation and use of a renew- 3. “Political subdivision” means a city, village, town, or able resource credit created on or after January 1, 2004, including county. calculating the amount of a renewable resource credit, and for the 4. “Wind energy system” has the meaning given in s. tracking of renewable resource credits by a regional renewable re- 66.0403 (1) (m). source credit tracking system. The rules shall specify the manner for aggregating or allocating credits under this subdivision or sub. (b) The commission shall, with the advice of the wind siting (2) (b) 4. or 5. council, promulgate rules that specify the restrictions a political subdivision may impose on the installation or use of a wind en- 1m. The commission shall promulgate rules that allow an ergy system consistent with the conditions specified in s. 66.0401 electric provider or customer or member of an electric provider to (1m) (a) to (c). The subject matter of these rules shall include set- create a renewable resource credit based on use in a year by the back requirements that provide reasonable protection from any electric provider, customer, or member of solar energy, including health effects, including health effects from noise and shadow solar water heating and direct solar applications such as solar flicker, associated with wind energy systems. The subject matter light pipe technology; wind energy; hydroelectric energy; geo- of these rules shall also include decommissioning and may in- thermal energy; biomass; biogas; synthetic gas created by the clude visual appearance, lighting, electrical connections to 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 de- power grid, setback distances, maximum audible sound levels, scribed in sub. (1) (h) 1. k.; or heat that is a byproduct of a manu- shadow flicker, proper means of measuring noise, interference facturing process and is used to provide thermal energy for an- with radio, telephone, or television signals, or other matters. A other purpose; but only if the use displaces the electric provider’s, political subdivision may not place a restriction on the installa- customer’s, or member’s use of electricity that is derived from tion or use of a wind energy system that is more restrictive than conventional resources, and only if the displacement is verifiable these rules. and measurable, as determined by the commission. The rules (c) In addition to the rules under par. (b), the commission shall allow an electric provider, customer, or member to create a shall, with the advice of the wind siting council, promulgate rules renewable resource credit based on 100 percent of the amount of that do all of the following: the displacement. The rules shall also allow an electric provider, 1. Specify the information and documentation to be provided customer, or member to create a renewable resource credit under in an application for approval to demonstrate that a proposed

wind energy system complies with rules promulgated under par. (c) Whether a violation of sub. (2) is due to circumstances be- (b). yond the violator’s control. 2. Specify the information and documentation to be included History: 1999 a. 9; 2001 a. 30; 2005 a. 141; 2009 a. 40, 406; 2011 a. 34, 155; 2013 a. 290, 300; 2017 a. 53. in a political subdivision’s record of decision under s. 66.0401 (4) Cross-reference: See also chs. PSC 118 and 128, Wis. adm. code. (b). Rules promulgated under sub. (4g) (b), which directs the Public Service Commis- sion to promulgate wind energy rules, do not require a housing impact report under 3. Specify the procedure a political subdivision shall follow s. 227.115. Wisconsin Realtors Association v. Public Service Commission of Wis- in reviewing an application for approval under s. 66.0401 (4). consin, 2015 WI 63, 363 Wis. 2d 430, 867 N.W.2d 364, 13-1407. 4. Specify the requirements and procedures for a political 196.39 Change, amendment and rescission of or- subdivision to enforce the restrictions allowed under par. (b). ders; reopening cases. (1) The commission at any time, (d) The commission shall promulgate rules requiring the upon notice to the public utility and after opportunity to be heard, owner of a wind energy system with a nominal operating capacity may rescind, alter or amend any order fixing rates, tolls, charges of at least one megawatt to maintain proof of financial responsi- or schedules, or any other order made by the commission, and bility ensuring the availability of funds for decommissioning the may reopen any case following the issuance of an order in the wind energy system upon discontinuance of use of the wind en- case, for any reason. ergy system. The rules may require that the proof can be estab- (2) An interested party may request the reopening of a case lished by a bond, deposit, escrow account, irrevocable letter of under s. 227.49. credit, or other financial commitment specified by the commission. (3) Any order rescinding, altering, amending or reopening a prior order shall have the same effect as an original order. (e) The wind siting council shall survey the peer-reviewed sci- entific research regarding the health impacts of wind energy sys- (4) Within 30 days after service of an order, the commission tems and study state and national regulatory developments re- may correct an error or omission in the order related to transcrip- garding the siting of wind energy systems. No later than October tion, typing or calculation without hearing if the correction does 1, 2014, and every 5 years thereafter, the wind siting council shall not alter the intended effect of the order. submit a report to the chief clerk of each house of the legislature, (5) This section does not apply to an order issued under s. for distribution to the appropriate standing committees under s. 196.371. History: 1983 a. 53, 144, 538; 1997 a. 204; 2005 a. 7. 13.172 (3), describing the research and regulatory developments The PSC cannot order a change in rates by order, without notice and hearing, on and including any recommendations of the council for legislation the ground that the order is only a clarification of an earlier order. Mid-Plains Tele- that is based on the research and regulatory developments. phone, Inc. v. PSC 56 Wis. 2d 780, 202 N.W.2d 907 (1973). (4m) ADDITIONAL RENEWABLE RESOURCES REQUIREMENTS. 196.395 Test, conditional, emergency and supple- (a) The commission may not impose on an electric provider any mental orders; order conditions. (1) The commission requirement that increases the electric provider’s renewable en- may issue an order calling for a test of actual results under re- ergy percentage beyond that required under sub. (2) (a) 2. If an quirements prescribed by the order, during which test period the electric provider is in compliance with the requirements of sub. commission may retain jurisdiction of the subject matter. The (2) (a) 2., the commission may not require the electric provider to commission may issue conditional, temporary, emergency and undertake, administer, or fund any other renewable energy pro- supplemental orders. If an order is issued upon certain stated gram. This paragraph does not limit the authority of the commis- conditions, any party acting upon any part of the order shall be sion to enforce an electric provider’s obligations under s. deemed to have accepted and waived all objections to any condi- 196.374. tion contained in the order. (b) An electric utility may, with commission approval, admin- (2) As a condition of any order, the commission may not re- ister or fund a program that increases the electric utility’s renew- quire a public utility to lobby on a legislative issue or to take a able energy percentage beyond that required under sub. (2) (a) 2. specific position on a legislative issue. The commission may not order an electric utility to administer or History: 1983 a. 53; 2011 a. 155. fund a program under this paragraph. Temporary and emergency rates may be appropriately and widely used by the public service commission when justified by the circumstances. Friends of the (4r) REPORTS. No later than July 1 of each even-numbered Earth v. PSC, 78 Wis. 2d 388, 254 N.W.2d 299 (1977). year, the commission shall submit a report to the governor and chief clerk of each house of the legislature for distribution to the 196.40 Orders and determinations; time of taking ef- legislature under s. 13.172 (2) that evaluates the impact of the re- fect. Every order or determination of the commission shall take quirements of this section on the rates and revenue requirements effect the day after the order or determination has been filed and of electric providers and compares that impact with the impact served by personal delivery, mail, electronic mail, or any other that would have occurred if renewable energy practices of electric method that the commission determines is likely to reach the par- providers were subject to market forces in the absence of the re- ties or their attorneys, to all parties to the proceeding in which the quirements of this section. order or determination was made or to their attorneys, unless the (5) PENALTY. Any person who violates sub. (2) or any renew- commission specifies a different date upon which the order or de- able energy supplier who provides an electric provider with a termination shall be effective. After the effective date every order false or misleading certification regarding the sources or amounts or determination shall be on its face lawful and reasonable unless of renewable energy supplied at wholesale to the electric provider a court determines otherwise under s. 227.57. History: 1983 a. 53; 1985 a. 182 s. 57; 2011 a. 155. shall forfeit not less than $5,000 nor more than $500,000. Forfei- tures under this subsection shall be enforced by action on behalf 196.41 Court review. Any order or determination of the of the state by the attorney general. A court imposing a forfeiture commission may be reviewed under ch. 227. under this subsection shall consider all of the following in deter- History: 1983 a. 53. mining the amount of the forfeiture: Statutory guidelines set forth in s. 227.52 allow only for an administrative deci- sion to be reviewed, which the courts have defined as a decision that is supported by (a) The appropriateness of the forfeiture to the person’s or a record and based upon findings of fact and conclusions of law. However, this sec- wholesale supplier’s volume of business. tion permits judicial review of orders and determinations under ch. 227. Therefore, the Public Service Commission’s (PSC) order denying a petition for rehearing in this (b) The gravity of the violation. case was subject to judicial review. Regardless, the PSC’s process regarding the re-

196.41 REGULATION OF PUBLIC UTILITIES

hearing petition met the definition of an administrative decision subject to review (1) (a) Prosecuted or subjected to any penalty or forfeiture for under s. 227.52. Town of Holland v. Public Service Commission, 2018 WI App 38, 382 Wis. 2d 799, 913 N.W.2d 914, 17-1129. testifying or producing evidence. (b) The immunity provided under par. (a) is subject to the re-