(1) DEFINITIONS. In this section: (a) “Annual emissions” means the number of pounds of sulfur dioxide emissions from all boilers under the ownership or control of a major utility in a given year. (b) “Annual heat input” means the heat input, measured in millions of British thermal units, from all boilers under the ownership or control of a major utility in a given year. (c) “Boiler” means a fossil fuel-fired boiler. (d) “Commission” means the public service commission. (e) “Environmental dispatching” means the operation of the various units under the ownership or control of a major utility in a manner that minimizes the discharge of sulfur dioxide emissions rather than minimizing the cost of operation. (f) “Major utility” means a Class A utility, as defined under s. 199.03 (4), which generates electricity or an electrical cooperative association organized under ch. 185, if the total sulfur dioxide emissions from all stationary air contaminant sources in this state under the ownership or control of the utility or association exceeded 5,000 tons in any year after 1979. (g) “Traded emissions” means the pounds of sulfur dioxide emissions in a given year that a major utility which is the grantor in an agreement under sub. (2) (b) 1. makes available to the major utility which is the grantee in the agreement. (2) CORPORATE EMISSION RATE; TRADING. (a) Except as provided under sub. (4), beginning with 1993, the average number of pounds of sulfur dioxide emissions per million British thermal units of heat input from all boilers under the ownership or control of a major utility for any year may not exceed 1.20. (b) 1. Two major utilities may enter into an agreement for trading emissions unless the sum of the proposed traded emissions and the projected annual emissions of the grantor major utility for the year to which the agreement will apply would exceed the actual annual emissions of the grantor major utility in 1985. 2. To determine whether the major utility that is the grantor in an agreement under subd. 1. is in compliance with par. (a) in a given year, the department shall add the traded emissions and the grantor’s annual emissions and divide the sum by the annual heat input of the grantor. 3. To determine whether the major utility that is the grantee in an agreement under subd. 1. is in compliance with par. (a) in a given year, the department shall subtract the traded emissions from the grantee’s annual emissions and divide the difference by the annual heat input of the grantee. (4) VARIANCE. (a) Request; variance conditions. A major utility may request a variance from the emission rate under sub. (2) (a) by submitting the request to the department. No request for a variance may be submitted if the department has served the major utility with written notice under s. 285.83 that the major utility has violated sub. (2) (a). Upon receipt of a request, the department shall, within 45 days, determine if any of the following variance conditions exists: 1. A major electrical supply emergency within or outside this state. 2. A major fuel supply disruption. 3. An extended and unplanned disruption in the operation of a nuclear plant or low sulfur coal-fired boiler under the ownership or control of the major utility. 4. The occurrence of an uncontrollable event. 5. A plan by the major utility to install and place into operation new technological devices that will enable it to achieve compliance with sub. (2) (a). (b) Compliance plan required. With the request for a variance, the major utility shall submit its plan for achieving compliance with the emission rate. If the request is based on a variance condition specified under par. (a) 1. to 4., the request shall include an explanation of why the major utility cannot achieve or remain in compliance by using fuel with a lower sulfur content or by environmental dispatching. (c) Grant of variance. The department shall grant a request for a variance if the department determines that a variance condition exists and the major utility’s compliance plan is adequate. (d) Denial of variance. The department shall deny a request for a variance if the department determines that no variance condition exists or the major utility’s compliance plan is not adequate. (e) Time limit for response. The department shall grant or deny a request for a variance within 90 days after its receipt of the request. (5) NO IMPACT ON OTHER PROVISIONS. Nothing in this section exempts a major utility from any provision of ss. 285.01 to 285.39 or 285.51 to 285.87. Compliance with this section is not a defense to a violation of any of those provisions. (6) DETERMINATION OF COMPLIANCE. The department shall determine compliance with sub. (2) (a) using data submitted by the major utilities. Each major utility shall provide the department with any information needed to determine compliance. (7) PENALTY. Notwithstanding s. 285.87, any major utility that exceeds the annual emission rate under sub. (2) (a) in violation of this section shall forfeit not less than $100,000 nor more than $500,000 for each year of violation.
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