(1) In this section: (a) “Eligible electric provider” means a generator public utility or a generator electric cooperative that provides electric service to customers or members in the midcontinent area of this state. (b) “Generator electric cooperative” means an electric cooperative, as defined in s. 76.48 (1g) (c), that generates electricity. (c) “Generator public utility” means a public utility, as defined in s. 196.01 (5), that generates electricity. (d) “Initial compliance date” means the date specified in a notice by the department of natural resources under s. 285.48 (2) by which electric generating facilities in the midcontinent area of this state are required to comply with initial nitrogen oxide emission reduction requirements. (e) “Midcontinent area” means the geographic area served by the Mid-Continent Area Power Pool reliability council of the North American Electric Reliability Council. (2) If the department of natural resources makes a notification to the department of administration under s. 285.48 (2), the department of administration shall do each of the following: (a) In each fiscal year of the 10-year period that commences on July 1 of the fiscal year ending before the initial compliance date, transfer $2,500,000, or the lesser amount specified in a notice under s. 285.48 (3) (d) 4. , from the utility public benefits fund to the air quality improvement fund. (b) From the air quality improvement fund, award grants to eligible electric providers to be used for the purpose of complying with requirements under state or federal law to reduce nitrogen oxide emissions in the midcontinent area of this state pursuant to a state implementation plan. An eligible electric provider that is a public utility may receive no more than $500,000 per year in grants under this paragraph. (c) Promulgate rules for awarding grants under par. (b). The rules shall require an applicant for a grant to identify the reduction in nitrogen oxide emissions that the applicant is capable of achieving with the grant. (3) An eligible electric provider that is awarded a grant under sub. (2) (b) may assign the grant to a 3rd party if the 3rd party uses the grant for the purpose of reducing nitrogen oxide emissions and the eligible electric provider demonstrates to the satisfaction of the department of administration that the 3rd party is capable of achieving the reduction in nitrogen oxide emissions identified in the eligible electric provider’s application for the grant.
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