Section 118.04. Creation and transfer of renewable energy certificates and renewable resource credits.

 

(1)  A renewable energy certificate or 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.

EXAMPLE: A RRC created for renewable energy generated in 2011 may be used to satisfy an electric provider's minimum percentage requirement under s. 196.378 (2) (a) , Stats., in compliance years 2011 through 2015. A RRC created in 2011 may be used for compliance year 2015 even if the RRC is not retired until 2016.

(1m)  For purposes of determining how long a renewable energy certificate or a RRC is eligible to be used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a) , Stats.:

(a) A renewable energy certificate is created when the renewable facility generates the renewable energy.

(b) A RRC for renewable energy is created when the renewable facility generates the renewable energy.

(c) A RRC for displaced conventional electricity is created in the year in which the use of the certified displacement facility displaces conventional electricity.

(2)  

(e) Renewable energy or displaced conventional electricity that would meet the definition of a RRC under s. PSC 118.02 (10) , except that it consists of less than one MWh, shall constitute a fraction of a RRC. A fractional RRC may not be smaller than 0.01 MWh.

(f) Two or more electric providers may jointly purchase or sell a renewable energy certificate or a RRC.

(fm) Two or more customers or members of an electric provider may jointly purchase or sell a RRC.

(g)

1. A RRC created before January 1, 2004, may be sold or used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a) , Stats. The RRCs described in this subdivision may not be used after December 31, 2011, as provided in s. 196.378 (3) (c) , Stats.

2. Renewable energy generated on or after January 1, 2004, but produced by a renewable facility that was placed into service before January 1, 2004, may only be used to create a RRC if the renewable energy constituted an incremental increase in output from the renewable facility due to capacity improvements that were made on or after January 1, 2004, as provided in s. 196.378 (3) (a) 2. , Stats. The RRCs described in this subdivision may not be used to meet a minimum percentage requirement under s. 196.378 (2) (a) , Stats., after the fourth year after the year in which the credit is created, as provided in s. 196.378 (3) (c) , Stats. If the renewable facility was originally placed in service before January 1, 2004, but is entirely replaced with a new and more efficient facility, all of the output from the new facility constitutes an incremental increase and may be used to create RRCs.

3. A RRC created on or after January 1, 2004, that is produced by a renewable facility placed into service on or after January 1, 2004, may be sold or used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a) , Stats. The RRCs described in this subdivision may not be used to meet a minimum percentage requirement under s. 196.378 (2) (a) , Stats., after the fourth year after the year in which the credit is created, as provided in s. 196.378 (3) (c) , Stats.

4. A RRC created for displaced conventional electricity may be sold or used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a) , Stats. The RRCs described in this subdivision may not be used to meet a minimum percentage requirement under s. 196.378 (2) (a) , Stats., after the fourth year after the year in which the credit is created, as provided in s. 196.378 (3) (c) , Stats.

5. A renewable energy certificate that is not a RRC may not be used to meet an electric provider's minimum percentage requirement under s. 196.378 (2) (a) , Stats., for a compliance period after the year in which the renewable energy certificate was created.

(3)  When a renewable energy certificate or a RRC is credited to an electric provider's account or the account of a customer or member of an electric provider, the account owner may sell or transfer the renewable energy certificate or RRC to another electric provider or customer or member of an electric provider. Any person selling or transferring a renewable energy certificate or a RRC shall report the sale or transfer to the program administrator within 10 days of the transaction. The program administrator shall then credit the renewable energy tracking system account of the new owner and debit the renewable energy tracking system account of the prior owner. A renewable energy certificate or a RRC may continue to be sold or traded only if each seller or transferor reports the transaction to the program administrator within 10 days of its consummation.

(4)  An electric provider shall annually retire renewable energy certificates and RRCs in the renewable energy tracking system to demonstrate compliance with its minimum percentage requirement under s. 196.378 (2) (a) , Stats. When an electric provider uses a RRC to comply with the minimum percentage requirements of s. 196.378 (2) (a) , Stats., the electric provider shall retire the RRC. When an electric provider uses a MWh of total renewable energy to comply with the minimum percentage requirements of s. 196.378 (2) (a) , Stats., the electric provider shall retire the renewable energy certificate representing the MWh of total renewable energy.

(5)  Subject to commission approval, if applicable, the program administrator may establish any procedure necessary to accurately record the creation, sale, transfer, purchase, and retirement of renewable energy certificates and RRCs.

CR 00-065 : cr. Register July 2001, No. 547 eff. 8-1-01; CR 06-112 : r. (1) and (2) (a) to (d), cr. (2) (g), am. (3) Register May 2007 No. 617 , eff. 6-1-07; CR 10-147 : am. (title), cr. (1), (1m), am. (2) (e), (f), (g) 2., 3., cr. (2) (g) 4., 5., am. (3) to (5) Register March 2012 No. 675 , eff. 4-1-12; CR 13-040 : am. (1m) (c), cr. (2) (fm), am. (3), (4), (5) Register April 2014 No. 700 , eff. 5-1-14; corrections in (1m) (intro.), (b), (2) (e), (f), (g), (3) made under s. 35.17 , Stats., Register April 2014 No. 700 ; CR 14-053 : am. (1) Register April 2015 No. 712 , eff. 5-1-15.