CR_14-052 Amends section PSC 135.019 (1) regarding the adoption of federal pipeline safety regulations.

The rule change would clarify what was intended and what was presented to the public through the Natural Resources Board process for development of the current ch. NR 150 .

Detailed explanation of statutory authority for the rule (including the statutory citation and language)

The department is responsible for compliance with department rules and procedures pursuant to s. 1.11 , and 227.11 , Stats., provides rule authority

Pursuant to s. 227.24 (1) (a) Stats., the department finds that putting this rule into effect prior to the time it would take effect using the permanent rule process is necessary to ensure that the department and public time involved in lengthy rule processes for current rules is not compromised by a confusing definition in ch. NR 150 .

Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule

48 hours.

List with description of all entities that may be affected by the proposed rule

It is anticipated that no entities shall be affected by the proposed rule. This clarifies internal procedures for rules development.

Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule

None.

Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses)

None.

Anticipated number, month, and locations of public hearings

The Department anticipates holding one public hearing in the month of September 2014.

The Department will hold this hearing in Madison to seek public comment on the changes to the rule.

Effect on Small Business

This rule will have no effect on small business. The Small Business Regulatory Coordinator may be contacted at [e-mail] , or by calling [phone].

Environmental Analysis

The Department has made a preliminary determination that adoption of the proposed rules would not involve significant adverse environmental effects and would not need an environmental analysis under ch. NR 150 , Wis. Adm. Code. However, based on comments received, an environmental analysis may be prepared before proceeding. This analysis would summarize the Department's consideration of the impacts of the proposal and any reasonable alternatives.

Fiscal Estimate Summary

Because this is a housekeeping change affecting only internal DNR operations, no Fiscal Estimate will be prepared.

Contact Person

Jeff Schimpff (BEAS/7)

Department of Natural Resources

Phone:   [phone]

E-mail:   [e-mail]

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chapter NR 150- Environmental Analysis and Review Procedures for Department Actions
3. Subject
Implementation of Wisconsin Environmental Policy Act, s. 1.11, Wis. Stats.
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
X GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   X SEG   ⍽ SEG-S			None.
6. Fiscal Effect of Implementing the Rule
⍽ No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget X Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		X Specific Businesses/Sectors X Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
Chapter NR 150 was revised and went into effect April 1, 2014. An emergency rule is needed to clarify the procedures for the review and analysis of new administrative rules in order to assure that the intent of the ch. NR 150 revision is being met and potential procedural questions do not invalidate the years of work and public engagement on new rules packages, and for additional housekeeping changes to ensure that the intent of the recent ch. NR 150 rewrite is being met, all in a manner that is consistent with past WEPA compliance approaches that have been upheld by the courts. The pre-2014 version of ch. NR 150 classified the promulgation of most administrative rules as "Type 3 actions", a classification requiring some form of public notice and no additional environmental analysis as part of the formal rules process. The rule changes now being proposed would be simple changes to clarify that emergency rules are "minor actions", requiring no additional environmental analysis, and that the process for developing permanent rules is an "equivalent analysis action" under the new ch. NR 150, similar to how they were treated under the old ch. NR 150. In addition, the revision includes clarification changes regarding strategic analysis requirements, minor actions, and procedures for publishing determinations. Consistent with the intent of the previous version of ch. NR 150, the emergency rule clarifies that a strategic analysis is required for review of significant policies, but for other policies or issues the strategic analysis can be used as a discretionary tool. The list of minor actions, not requiring additional environmental analysis, has been expanded to include actions that originally were intended to be outlined in program guidance. The proposed revisions in the emergency rule would clarify in rule the list of activities.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Businesses that may be affected by this rule revision include mainly those that are required to apply for WDNR permits for projects that exhibit the potential to have "significant effects upon the quality of the human environment" (due to major air emissions, wastewater discharges, water withdrawals, etc.). However, ch. NR 150 Is primarily an administrative process that applies internally to WDNR, so impacts to businesses are minimal. In addition, most environmental review data is also required under permit review procedures, so in general little to no additional cost is imposed by the environmental impact statement process.
11. Identify the local governmental units that participated in the development of this EIA.
None.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
Not required for emergency rules. Wis. Stat. s. 227.137(5)
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
DNR staff will have more clarity regarding the implementation of ch. NR 150 and regarding the required review process for promulgating administrative rules. DNR staff and the public will have more clarity regarding publication requirements and WEPA compliance determinations for various permits and plan approvals.
14. Long Range Implications of Implementing the Rule
No long range implications, since it is an emergency rule, and can only be in place for up to 270 days.
15. Compare With Approaches Being Used by Federal Government
This revised rule is similar to the existing rule, in that it substantially follows the guidelines of the federal Council on Environmental Quality as directed by s. 1.11, Wis. Stats.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
Neighboring states have significant differences in their related laws, so the opportunity to gain from their experience is limited. For example, Minnesota requires that counties also follow WEPA-like analysis procedures, whereas Wisconsin counties have no such requirements. Illinois' law covers only actions conducted by the state itself, whereas in Wisconsin, WEPA applies to all actions, including actions permitted or regulated by the state.
17. Contact Name				18. Contact Phone Number
David Siebert				608-264-6048

This document can be made available in alternate formats to individuals with disabilities upon request.

ATTACHMENT A

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

None.

2. Summary of the data sources used to measure the Rule's impact on Small Businesses

None.

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

⍽ Less Stringent Compliance or Reporting Requirements

⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting

⍽ Consolidation or Simplification of Reporting Requirements

⍽ Establishment of performance standards in lieu of Design or Operational Standards

⍽ Exemption of Small Businesses from some or all requirements

⍽ Other, describe:

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

Not applicable.

5. Describe the Rule's Enforcement Provisions

This rule carries no enforcement provisions. Disputes regarding the need to conduct an EIS analysis have judicial avenues of appeal.

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

⍽ Yes X No

Notice of Rulemaking without Hearing

Public Service Commission

CR 14-052

(PSC DOCKET # 1-AC-246)

The Public Service Commission of Wisconsin proposes an order to amend section PSC 135.019 (1) , regarding the adoption of federal pipeline safety regulations.

This rulemaking will be done without a hearing because, under s. 227.16 (2) (b) , Stats., no hearing is required when an existing rule is being brought into conformity with a statute that has changed. However, written comments will be accepted.

Written Comments

Any person may submit written comments on these proposed rules. The record will be open for written comments from the public, effective immediately, and until Tuesday, September 30, 2014, at noon . All written comments must include a reference on the filing to docket 1-AC-246. File by one mode only.

Industry: File comments using the Electronic Regulatory Filing system. This may be accessed from the commission's web site ( http://psc.wi.gov ).

Members of the Public:

Please submit your comments in one of the following ways:

•   Electronic Comment. Go to the commission's web site at http://psc.wi.gov , and click on the "ERF - Electronic Regulatory Filing" graphic on the side menu bar. On the next page, click on "Need Help?" in the side menu bar for instructions on how to upload a document.

•   Web Comment. Go to the commission's web site at http://psc.wi.gov , click on the "Public Comments" button on the side menu bar. On the next page select the "File a comment" link that appears for docket number 1-AC-246.

•   Mail Comment. All comments submitted by U.S. mail must include the phrase "Docket 1-AC-246 Comments" in the heading, and shall be addressed to:

Sandra J. Paske, Secretary to the Commission

Public Service Commission

P.O. Box 7854

Madison, WI 53707-7854

The commission does not accept comments submitted via e-mail or facsimile (fax). Any material submitted to the commission is a public record and may appear on the commission's web site. The commission may reject a comment that does not comply with the requirements described in this notice.

Contact People

Questions regarding this matter should be directed to docket coordinator Thomas Stemrich, at [phone] or [e-mail] . Small business questions should be directed to Christina Keeley at [phone] or [e-mail] . Media questions should be directed to the Communications Director at [phone]. Hearing or speech impaired individuals may also use the commission's TTY number, if calling from Wisconsin [phone], if calling from outside Wisconsin [phone].

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to get this document in a different format should contact the docket coordinator, as indicated in the previous paragraph, as soon as possible.

Analysis Prepared by the Public Service Commission of Wisconsin

Statutory authority and explanation of authority

This rule is authorized under ss. 196.02 (1) and (3) , 196.745 (1) (a) , and 227.11 , Stats.

Section 227.11 , Stats., authorizes agencies to promulgate administrative rules. Section 196.02 (1) , Stats., authorizes the commission to do all things necessary and convenient to its jurisdiction. Section 196.02 (3) , Stats., grants the commission specific authority to promulgate rules. Section 196.745 (1) (a) , Stats., grants the commission specific authority to adopt rules requiring that the construction and operation of gas facilities be done in a reasonably adequate and safe manner.

Statute interpreted

This rule interprets s. 196.745 , Stats., and, under a contract with the U.S. Department of Transportation, Office of Pipeline Safety, the federal pipeline safety regulations ( 49 CFR 190 to 199 ).

Related statutes or rules

The federal pipeline safety statutes may be found in 49 USC 60101 to 60133 . The federal pipeline safety regulations may be found in 49 CFR 190 to 199 . Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission enforces the federal pipeline safety regulations for Wisconsin's natural gas pipeline operators, primarily public utilities. Under this agreement, the commission has the authority to make additions to the federal code that are more stringent than the federal standards.

Chapter PSC 134 is the rule that deals with gas service standards. That rule also has some requirements concerning safe interactions between pipeline operators and their customers.

Brief summary of rule

Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission is authorized to enforce federal natural gas pipeline safety requirements as set out in the Code of Federal Regulations, 49 CFR. Parts 192 , 193 , and 199 . As part of the agreement, the commission adopts the federal pipeline safety code in Wis. Admin. Code s. PSC 135.019 . The commission's latest version of that rule adopts the federal code up to January 1, 2013. New gas pipeline safety code requirements are generally enacted in October of each year. As a result, the commission needs to amend its rule to include those federal regulation changes made since January 2013. Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area.

Comparison with existing or proposed federal legislation

As this is the adoption of the federal regulations, it is the same as the federal regulations.

Comparison with similar rules in surrounding states

All states, including Michigan, Iowa, Illinois, and Minnesota, adopt the federal pipeline regulations.

Effect on Small Business

This rule will not affect small businesses. The s. 227.114(12) , Stats., definition of "small business" states that to be considered a small business, the business must not be dominant in its field. Since electric, gas, and water utilities are monopolies in their service territories, they are dominant in their fields and, so, are not small businesses. Further, the contract between the federal department of transportation and the commission requires that treatment be uniform across the state and across gas pipeline operators. As a result, the commission cannot make special provisions for small business.

Comments

Comments on this rule may be submitted as outlined in the Notice of Rulemaking without Hearing and Request for Comments.

Accommodation

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this rulemaking or who needs to obtain this document in a different format should contact the docket coordinator listed below.

Agency Contact People

Questions regarding this rule should be directed to docket coordinator Thomas Stemrich, at [phone] or [e-mail] . Small business questions should be directed to Christina Keeley at [phone] or [e-mail] . Media questions should be directed to the Communications Director, at [phone]. Hearing or speech-impaired individuals may also use the commission's TTY number; if calling from Wisconsin, [phone]; if calling from outside Wisconsin [phone].

Initial Regulatory Flexibility Analysis

This rulemaking has no effect on small businesses. The s. 227.114 (12) , Stats., definition of "small business" states that to be considered a small business, the business must not be dominant in its field. Since gas utilities are monopolies in their service territories, they are dominant in their field and, so, are not small businesses. Further, the contract between the federal department of transportation and the commission requires that treatment be uniform across the state and across gas pipeline operators. As a result, the commission cannot make special provisions for small business.

Fiscal Estimate

This rule will result in no fiscal impact since pipeline operators are already required, under federal law, to follow the federal regulations. Any economic impact of those federal regulations has already occurred. This rulemaking just updates the state's enforcement authority.

Text of Proposed Rule

SECTION 1. PSC 135.019 (1) is amended to read:

PSC 135.019 (1) The federal department of transportation, office of pipeline safety, pipeline safety standards, as adopted through January 1, 2013 the effective date of these rules … [LRB to insert date] … , and incorporated in 49 CFR Parts 192 , 193 and 199 , including the appendices, are adopted as state pipeline safety standards and incorporated by reference into this chapter.

SECTION 2. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.) , Stats.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

155 – PSC 135 – Pipeline Safety Regulations
1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
PSC 135, Gas Safety
3. Subject
Adoption of federal gas pipeline regulations
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   X FED   X PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission is authorized to enforce federal natural gas pipeline safety requirements as set out in the Code of Federal Regulations, 49 C.F.R. Parts 192, 193, and 199. As part of the agreement, the commission adopts the federal pipeline safety code in Wis. Admin. Code s. PSC 135.019. The commission's latest version of that rule adopts the federal code up to January 1, 2013. New gas pipeline safety code requirements are generally enacted in October of each year. As a result, the commission needs to amend its rule to include those federal rule changes made since January 2013. Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
All gas utilities, Wisconsin Utilities Association, Utility Workers' Association, and National Federation of Independent Businesses.
11. Identify the local governmental units that participated in the development of this EIA.
N/A
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
This rule will result in no economic impact since pipeline operators are already required, under federal law, to follow the federal regulations. Any economic impact of those federal regulations has already occurred. This rulemaking just updates the state's enforcement authority.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Adoption of these amendments will keep the commission in compliance with its obligation to adopt all federal changes in the pipeline safety area. Being in compliance increases the amount of federal money received by the state.
14. Long Range Implications of Implementing the Rule
The only long-range implication is that the state's enforcement authority will be updated.
15. Compare With Approaches Being Used by Federal Government
As this is the adoption of the federal regulations, it is the same approach as the federal government.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
All states, including the neighboring states, adopt the federal pipeline regulations.
17. Contact Name				18. Contact Phone Number
Lisa Farrell				06/13/2014

ATTACHMENT A

1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)

N/A

2. Summary of the data sources used to measure the Rule's impact on Small Businesses

N/A

3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?

⍽ Less Stringent Compliance or Reporting Requirements

⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting

⍽ Consolidation or Simplification of Reporting Requirements

⍽ Establishment of performance standards in lieu of Design or Operational Standards

⍽ Exemption of Small Businesses from some or all requirements

⍽ Other, describe:

4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses

N/A

5. Describe the Rule's Enforcement Provisions

N/A

6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)

⍽ Yes X No

Notice of Hearings

Public Service Commission

CR 14-053

(PSC DOCKET # 1-AC-244)

The Public Service Commission of Wisconsin proposes an order to repeal sections PSC 112.05 (3) (a) 1. to 3. and 118.03 (2) (b) ; renumber section PSC 133.03 (1) (e) 1. to 3. ; to renumber and amend sections PSC 118.09 (1) , 133.03 (1) (e) and 184.03 (3) ; to amend sections PSC 112.05 (3) (a) (intro.) and (b) , 118.02 (17) , 118.03 (1) (intro.) , (2) (intro.) , (4) (b) , and (5) , and 118.04 (1) ; to create PSC sections 112.05 (3) (c) and (c) (note), 118.09 (1), 133.03 (1) (e) 2., 3., and 3. (note), and 184.03 (3) (b), (c), and (c) (note), regarding obtaining a certificate or approval prior to beginning a proposed utility project, and displacement facility requirements and the displacement percentage that apply in renewable energy situations.

Hearing Information

Date:   Tuesday, September 30, 2014
Time:   10:00 a.m.
Location:   Amnicon Falls Hearing Room
  1st Floor
  Public Service Commission
  610 North Whitney Way
  Madison, Wisconsin

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to get this document in a different format should contact the docket coordinator Andrew Kell, at [phone] or [e-mail] as soon as possible.

Appearances at the hearing and Submittal of Written Comments

Pursuant to s. 227.16 (2 ) (b), Stats., the commission will hold a public hearing on these proposed rule changes in the Amnicon Falls Hearing Room at the Public Service Commission Building, 610 North Whitney Way, Madison, Wisconsin, on Tuesday, September 30, 2014, at 10:00 a.m.. This building is accessible to people in wheelchairs through the Whitney Way (lobby) entrance. Handicapped parking is available on the south side of the building.

Any person may submit written comments on these proposed rules. The record will be open for written comments from the public, effective immediately, and until Tuesday, October 14, 2014, at 12:00 noon . All written comments must include a reference on the filing to docket 1-AC-244. File by one mode only.

Industry : File comments using the Electronic Regulatory Filing system. This may be accessed from the commission's web site ( http://psc.wi.gov ).

Members of the Public :

Please submit your comments in one of the following ways:

•   Electronic Comment. Go to the commission's web site at http://psc.wi.gov , and click on the "ERF - Electronic Regulatory Filing" graphic on the side menu bar. On the next page, click on "Need Help?" in the side menu bar for instructions on how to upload a document.

•   Web Comment. Go to the commission's web site at http://psc.wi.gov , click on the "Public Comments" button on the side menu bar. On the next page select the "File a comment" link that appears for docket number 1-AC-244.

•   Mail Comment. All comments submitted by U.S. mail must include the phrase "Docket 1-AC-244 Comments" in the heading, and shall be addressed to:

Sandra J. Paske, Secretary to the Commission

Public Service Commission

P.O. Box 7854

Madison, WI 53707-7854

The commission does not accept comments submitted via e-mail or facsimile (fax). Any material submitted to the commission is a public record and may appear on the commission's web site. The commission may reject a comment that does not comply with the requirements described in this notice.

Contact People

Questions regarding this matter should be directed to docket coordinator Andrew Kell, at [phone] or [e-mail] . Small business questions should be directed to Christina Keeley at [phone] or [e-mail] . Media questions should be directed to the Communications Director at [phone]. Hearing or speech impaired individuals may also use the commission's TTY number, if calling from Wisconsin [phone], if calling from outside Wisconsin [phone].

Analysis Prepared by the Public Service Commission of Wisconsin

Statutory authority and explanation of authority

This rulemaking is authorized under ss. 196.02 (1) and (3) , 196.378 , 196.49 (3) , and 227.11 (2) , Stats.

Section 227.11 , Stats., authorizes agencies to promulgate administrative rules. Section 196.02 (1) , Stats., authorizes the commission to do all things necessary and convenient to its jurisdiction. Section 196.02 (3) , Stats., grants the commission specific authority to promulgate rules. Section 196.378 , Stats., authorizes the Commission to promulgate a variety of rules concerning renewable energy credits. Section 196.49 (3) , Stats., authorizes the Commission to promulgate rules about granting certificates.

Statute interpreted

This rule interprets ss. 196.378 and 196.49 , Stats.

Related statutes or rules

None.

Brief summary of rule

The purpose of the rulemaking is to amend chs. PSC 112 , 133 , and 184 of the Wisconsin Administrative Code relating to the requirement to obtain a certificate or approval prior to beginning a proposed project, to conform with the statutory changes in s. 196.49 (5g) , Stats., made by 2011 Wisconsin Act 155 . This is accomplished by referencing where the revised cost thresholds for certification or approval may be found.

Furthermore, this rulemaking amends ch. PSC 118 , relating to displacement facilities, to conform with the statutory changes made in s. 196.378 (3) (a) 1m. , Stats., by 2013 Wisconsin Act 300 . This is accomplished in the following ways: (1) strike the requirement that a displacement facility be placed in service on or after June 3, 2010, to be consistent with the statute; and (2) revise the reference to "in the entire area served by the Midcontinent Independent System Operator" as a basis for the displacement percentage to streamline the process for determining the displacement percentage.

Comparison with existing or proposed federal legislation

The commission is not aware of any existing or proposed federal legislation concerning the matters addressed in this rulemaking.

Comparison with similar rules in surrounding states

The commission is not aware of any surrounding states that limit what facilities may be used to recreate renewable energy credits by the date on which the facilities went into service. The commission is not aware of any surrounding states that determine whether certification or approval is necessary by the cost of the project.

Effect on Small Business

This rule will not affect small businesses. The s. 227.114 (12) , Stats., definition of "small business" states that to be considered a small business, the business must not be dominant in its field. Since electric, gas, and water utilities are monopolies in their service territories, they are dominant in their fields and, so, are not small businesses.

Comments

Comments on this rule may be submitted as outlined in the Notice of Hearing.

Accommodation

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to obtain this document in a different format should contact the docket coordinator listed below.

Agency Contact People

Questions regarding this rule should be directed to docket coordinator Andrew Kell, at [phone] or [e-mail] . Small business questions should be directed to Christina Keeley at [phone] or [e-mail] . Media questions should be directed to the Communications Director at [phone]. Hearing or speech-impaired individuals may also use the commission's TTY number; if calling from Wisconsin, [phone]; if calling from outside Wisconsin [phone].

Initial Regulatory Flexibility Analysis

This rule will not affect small businesses. The s. 227.114 (12) , Stats., definition of "small business" states that to be considered a small business, the business must not be dominant in its field. Since gas, electric, and water utilities are monopolies in their service territories, they are dominant in their fields, and so, are not small businesses.

Fiscal Estimate

This rulemaking should have either no or minimal economic impact.

Wisconsin Environmental Policy Act

This is a Type III action under Wis. Admin. Code s. PSC 4.10 (3) . The Commission will review the potential environmental effects of the project. Type III actions normally do not require the preparation of an environmental impact statement under Wis. Stat. s. 1.11 or an environmental Assessment.

Text of Proposed Rule

SECTION 1. PSC 112.05 (3) (a) (intro.) is amended to read:

PSC 112.05 (3) (a) (intro.) Cost thresholds for projects requiring commission review and approval under this section are as follows: those established under par. (b) .

SECTION 2. PSC 112.05 (3) (a) 1. to 3. are repealed.

SECTION 3. PSC 112.05 (3) (b) is amended to read:

PSC 112.05 (3) (b) Beginning in calendar year 2000, and on May 1 on May 1 , 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the estimated gross cost thresholds in par. (a) s. 196.49 (5g) (a) , Stats., to account for inflation in reflect changes to the cost of electric utility construction . The adjustment shall be based on the cost index numbers published in the "Handy-Whitman Index of Public Utility Construction Costs, Cost Trends of Electric Utility Construction - North Central Region for Total Transmission Plant" (Handy-Whitman Index) . The commission shall make the adjustment calculation by multiplying each gross cost threshold in par. (a) by the ratio of the Handy Whitman Index number on January 1 of the most recent even-numbered year (numerator) to the Handy Whitman Index number on January 1, 1998 (denominator). The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year. If the referenced Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the electric industry and acceptable to the commission.

SECTION 4. PSC 112.05 (3) (c) and (c) note are created to read:

PSC 112.05 (3) (c) The commission shall notify all electric utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission's website. If the Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the electric industry and acceptable to the commission.

Note: The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission's offices.

SECTION 5. PSC 118.02 (17) is amended to read:

PSC 118.02 (17) " Tracking system account" means the account that the program administrator maintains in order to track the creation, sale, transfer, purchase, and retirement of a renewable energy certificate or a an RRC by a renewable energy tracking system participant.

SECTION 6. PSC 118.03 (1) (intro.) and 118.03 (2) (intro.) are amended to read:

PSC 118.03 (1) (intro.) An electric provider may use the output of a renewable facility to meet a minimum percentage requirement under s. 196.378 (2) (a) , Stats., or to create a an RRC for renewable energy only if the renewable facility that is the source of the electric provider's renewable energy meets all of the following requirements:

PSC 118.03 (2) (intro.) An electric provider or customer or member of an electric provider may create a an RRC for conventional electricity displaced by the use of a displacement facility only if the displacement facility meets all of the following requirements:

SECTION 7. PSC 118.03 (2) (b) is repealed.

SECTION 8. PSC 118.03 (4) (b) (intro.) and 118.03 (5) are amended to read:

PSC 118.03 (4) (b) (intro.) An electric provider may use the production of a facility that satisfies par. (a) to meet a minimum percentage requirement under s. 196.378 (2) (a) , Stats., or to create a an RRC if the electric provider demonstrates all of the following:

PSC 118.03 (5) A customer or member of an electric provider may create a an RRC in the manner described in sub. (4).

SECTION 9. PSC 118.04 (1) is amended to read:

PSC 118.04 (1) A renewable energy certificate or a an RRC is used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a) , Stats., in the compliance period for which the electric provider retires the renewable energy certificate or RRC, regardless of the date on which the renewable energy certificate or RRC is retired in the renewable energy tracking system.

SECTION 10. PSC 118.09 (1) is renumbered 118.09 (1m) and amended to read:

PSC 118.09 (1m) For each calendar year, the commission shall , by order, determine the percentage of electricity from conventional resources for the entire state for purposes of calculating the amount of a RRC RRCs to be created for displaced conventional electricity. The commission shall base this determination on the annual average mix of resources used to generate electricity in the entire area served by the Midcontinent Independent System Operator equation of 100% minus the total statewide renewable energy percentage, as calculated using renewable energy information submitted to the commission by electric providers in their most recent renewable portfolio standard compliance reports . The commission may, by order, also establish a different percentage for a specific type of displacement facility if its seasonal or daily operating characteristics justify a percentage that differs from the annual average percentage.

SECTION 11. PSC 118.09 (1) is created to read:

PSC 118.09 Calculation of displaced conventional electricity. (1) For purposes of this section, "Total statewide renewable energy percentage" means the percentage that results from the following calculation:

(a) The actual renewable generation that serves Wisconsin retail customers within a given year as part of any of the following:

1. Wisconsin electric provider renewable portfolio standard requirements.

2. Any other federal or state renewable energy requirements that apply to Wisconsin electric providers.

3. Wisconsin electric provider voluntary renewable energy programs.

(b) Divided by the total sales of electricity to Wisconsin retail customers in that same year.

SECTION 12. PSC 133.03 (1) (e) is renumbered 133.03 (1) (e) 1. and amended to read:

PSC 133.03 (1) (e) 1. A single gas pipeline project and associated plant, or any plant or addition to plant the cost of which exceeds $1,500,000 or 4% of the utility's gross gas operating revenue received during the previous calendar year, whichever is less the cost threshold established under subd. 2. , except for any of the following:

SECTION 13. PSC 133.03 (1) (e) 1. to 3. are renumbered 133.03 (1) (a) to (c).

SECTION 14. PSC 133.03 (1) (e) 2., 3. and 3. (note) are created to read:

PSC 133.03 (1) (e) 2. Beginning on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the cost thresholds in s. 196.49 (5g) (a) , Stats., to reflect changes to the cost of gas utility construction based on the applicable industry cost index numbers published in the "Handy-Whitman Index of Public Utility Construction Costs."

3. The commission shall notify all gas utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission's website. If the Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the gas industry and acceptable to the commission.

Note: The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission's offices.

SECTION 15. PSC 184.03 (3) is renumbered 184.03 (a) and amended to read:

PSC 184.03 (3) Construction of facilities. (a) A utility shall obtain a certificate from the commission before constructing, purchasing, installing, modifying, replacing, or placing in operation any plant not exempt under sub. (4) if the project cost exceeds $250,000 or 25percent of the utility's gross water or sewer operating revenue received during the previous calendar year, whichever is less, or exceeds the cost threshold established under s. 196.49 (5g) (b), Stats. the cost threshold established under par. (b).

SECTION 16. PSC 184.03 (3) (b), (c) and (c) (note) are created to read:

PSC 184.03 (3) (b) Beginning on May 1, 2014, and on May 1 of each successive even-numbered year thereafter, the commission shall adjust the cost thresholds in s. 196.49 (5g) (a) , Stats., to reflect changes to the cost of water utility construction based on the applicable industry cost index numbers published in the "Handy-Whitman Index of Public Utility Construction Costs."

(c) The commission shall notify all water utilities of the resulting adjusted cost limits by May 15 of each even-numbered year and shall publicize the adjusted cost limits on the commission's website. If the Handy-Whitman Index is no longer available, an equivalent successor index may be used which is generally recognized by the water industry and acceptable to the commission.

Note: The commission maintains or has access to the Handy-Whitman Index of Public Utility Construction Costs and this reference or a copy may be reviewed by contacting the commission's offices.

SECTION 17. This rule shall take effect on the first day of the month following publication in the Wisconsin administrative register as provided in s. 227.22 (2) (intro.) , Stats.

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2049 (R03/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: [phone]
ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
X Original   ⍽ Updated   ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chapters PSC 112, PSC 118, PSC 133, and PSC 184
3. Subject
This rulemaking addresses two different areas: cost thresholds for needing to obtain a certificate or approval prior to beginning a proposed project, and displacement facilities. The cost thresholds will be updated, the requirement that a displacement facility be placed in service on or after June 3, 2010 will be stricken and the reference to the Midcontinent Independent System Operator as a basis for the displacement percentage will be revised to streamline the process for determining the displacement percentage
4. Fund Sources Affected			5. Chapter 20, Stats. Appropriations Affected
⍽ GPR   ⍽ FED   ⍽ PRO   ⍽ PRS   ⍽ SEG   ⍽ SEG-S
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers ⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes   X No
9. Policy Problem Addressed by the Rule
The rule making amends relevant sections of chs. PSC 112, PSC 133, and PSC 184 to conform with 2011 Wisconsin Act 155, and amends relevant sections of PSC 118 to conform with 2013 Wisconsin Act 300. Finally, getting data from the Midcontinent Independent System Operator has turned out to be time-consuming and less detailed than necessary.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
All electric, gas and water utilities, Citizens' Utility Board, League of Wisconsin Municipalities, , Wisconsin Industrial Energy Group, Municipal Electric Utilities of Wisconsin, Wisconsin Towns Association, Wisconsin Counties Association, Wisconsin Utilities Association, Wisconsin Paper Council, Clean Wisconsin, RENEW Wisconsin.
11. Identify the local governmental units that participated in the development of this EIA.
League of Wisconsin Municipalities, Municipal Electric Utilities of Wisconsin, Wisconsin Towns Association, Wisconsin Counties Association.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
None or minimal. Any economic impact occurred when the statutes were passed. This rulemaking just brings the rules into compliance.

13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
This will bring the rules into conformity with the statutes and will streamline the process for determining the percentage of electricity from conventional resources that has been displaced by renewable energy. This percentage is used to calculate the amount of renewable resource credits that may be created .
14. Long Range Implications of Implementing the Rule
Keeps the rules in conformity with the statutes. Less confusion. Faster determination of the displacement percentage used in renewable energy credit matters.
15. Compare With Approaches Being Used by Federal Government
The federal government does not have a similar program.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
The commission is not aware of any surrounding states that limit what facilities may be used to recreate renewable energy credits by the date on which the facilities went into service or of any surrounding states that determine whether certification or approval is necessary by the cost of the project.
17. Contact Name	18. Contact Phone Number
Lisa Farrell	608-267-9086

This document can be made available in alternate formats to individuals with disabilities upon request.