Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB73 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 73
5	5	February 28, 2023 - Introduced by Representatives OLDENBURG, PLUMER, BROOKS,
6	6	KNODL, MICHALSKI, MURSAU, NEDWESKI, RODRIGUEZ and SUBECK, cosponsored
7	7	by Senators BALLWEG, COWLES, FELZKOWSKI, MARKLEIN, PFAFF and
8	8	WANGGAARD. Referred to Committee on Energy and Utilities.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 79.04 (5) (a) (intro.) and 79.04 (5) (b) (intro.); and to create
11	11	79.005 (1h) and 79.04 (8) of the statutes; relating to: changing the phase-out
12	12	of utility aid payments for decommissioned power plants.
13	13	Analysis by the Legislative Reference Bureau
14	14	Under current law, if a power production plant that is exempt from property
15	15	taxes is decommissioned or closed, and therefore becomes taxable, the county and
16	16	municipality where the plant is located each receive a utility aid payment for the first
17	17	five years in which the plant is subject to the property tax, in an amount equal to a
18	18	percentage of the utility aid payment received for the last year in which the plant was
19	19	exempt. Under the bill, these post-exemption utility aid payments are made only
20	20	for a production plant that is decommissioned. Under the bill, “decommissioned”
21	21	means, with regard to a production plant, the earliest of the following: 1) the
22	22	production plant is no longer recovered through the utility's rates; or 2) the
23	23	production plant is transferred to a person who is not subject to the annual license
24	24	fees imposed by the state.
25	25	The bill also provides that, with regard to a power production plant that has
26	26	multiple power generation units, the utility aid payment received by a county or
27	27	municipality will not be reduced on the basis that one or more, but not all, of the
28	28	power generation units permanently ceased generating electricity, and the amount
29	29	of the payment will be the same as the payment received in the year before the year
30	30	the first power generation unit permanently ceased generating electricity. In
31	31	addition, the phase out of utility aid payments under the bill does not begin until the
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36	36	ASSEMBLY BILL 73
37	37	production plant is decommissioned, and the amounts of the phase-out payments
38	38	are determined on the basis of the amount of the payment received in the year before
39	39	the year the first power generation unit permanently ceased generating electricity.
40	40	For further information see the state and local fiscal estimate, which will be
41	41	printed as an appendix to this bill.
42	42	The people of the state of Wisconsin, represented in senate and assembly, do
43	43	enact as follows:
44	44	SECTION 1. 79.005 (1h) of the statutes is created to read:
45	45	79.005 (1h) “Decommissioned” means, with regard to a production plant, the
46	46	earliest of the following:
47	47	(a) The production plant is no longer recovered through the utility's or
48	48	cooperative's rates or, for a production plant owned by a qualified wholesale electric
49	49	company, as defined in s. 76.28 (1) (gm), the production plant permanently ceases
50	50	generating electricity.
51	51	(b) The production plant is transferred to a person who is not subject to the
52	52	annual license fee imposed under s. 76.28 (2) or 76.29 (2).
53	53	SECTION 2. 79.04 (5) (a) (intro.) of the statutes is amended to read:
54	54	79.04 (5) (a) (intro.) If property that was exempt from the property tax under
55	55	s. 70.112 (4) and that was used to generate power by a light, heat, or power company,
56	56	except property under s. 66.0813, unless the production plant is owned or operated
57	57	by a local governmental unit located outside of the municipality, or by an electric
58	58	cooperative, or by a municipal electric company under s. 66.0825, is decommissioned
59	59	or closed, the municipality shall be paid, from the public utility account, an amount
60	60	equal to the following percentages of the payment that the municipality received
61	61	under this section during the last year that the property was exempt from the
62	62	property tax:
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84	84	SECTION 3
85	85	ASSEMBLY BILL 73
86	86	SECTION 3. 79.04 (5) (b) (intro.) of the statutes is amended to read:
87	87	79.04 (5) (b) (intro.) If property that was exempt from the property tax under
88	88	s. 70.112 (4) and that was used to generate power by a light, heat, or power company,
89	89	except property under s. 66.0813, unless the production plant is owned or operated
90	90	by a local governmental unit located outside of the municipality, or by an electric
91	91	cooperative, or by a municipal electric company under s. 66.0825, is decommissioned
92	92	or closed, the county shall be paid, from the public utility account, an amount equal
93	93	to the following percentages of the payment the county received under this section
94	94	during the last year that the property was exempt from the property tax:
95	95	SECTION 4. 79.04 (8) of the statutes is created to read:
96	96	79.04 (8) All of the following apply to the payments for property of a production
97	97	plant that includes multiple power generation units, except that this subsection
98	98	applies only if the production plant's first power generation unit permanently ceases
99	99	generating electricity after the effective date of this subsection .... [LRB inserts date]:
100	100	(a) No payment received by a municipality or county under sub. (1), (2), (6), or
101	101	(7) shall be reduced on the basis that one or more, but not all, of the power generation
102	102	units permanently cease generating electricity, and the amount of the payment shall
103	103	be the amount that the municipality or county received in the year before the year
104	104	in which the first power generation unit permanently ceased generating electricity.
105	105	(b) The payments under sub. (5) (a) or (b) shall not be made until the production
106	106	plant is decommissioned, and then the payments shall be determined on the basis
107	107	of the amount of the payment received by the municipality or county under sub. (1),
108	108	(2), (6), or (7) in the year before the year in which the first power generation unit
109	109	permanently ceased generating electricity.
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