As noted last week, the Senate and Assembly special committees created for the climate change bills (AB 649/SB 450) begin a slate of hearings today, beginning at 11:45 a.m. at the Capitol. Beginning today, Hamilton Consulting Regulatory Watch will provide updates of all of the hearings.

Today’s hearing is for informational purposes only, meaning that the public is not yet allowed to provide public comments. It will be an opportunity for legislators on the committees to ask questions about the very complex piece of legislation.

To view Hamilton Consulting Regulatory Watch’s analysis of the 174-page bill, please click here.

Senators Jeff Plale and Mark Miller today announced a series of hearings on Gov. Doyle’s global warming bill, dubbed the “Clean Energy Jobs Act.” The 174-page bill (SB 450/AB 649) would considerably alter Wisconsin’s economy. For more information about what is in the bill, see Hamilton Consulting’s analysis.

Below is a schedule of hearings on particular topics within the omnibus legislation: 

• 10:45 a.m., Wed., Jan 20: Informational hearing (Room 412-E).
• 10 a.m., Wed., Jan. 27: Public hearing focusing on: Public Service Commission, industrial energy incentives (412-E).
• 10 a.m., Wed., Feb. 10: Public hearing focusing on: Vehicles; fuels, planning, transportation infrastructure; energy efficient buildings and equipment; bioenergy (412-E).
• 10 a.m., Thu., Feb. 11: Public hearing on: Goals, program coordination and evaluation, public education, state and local government, cap and trade report (412-E).

The Obama Administration last week announced plans to significantly reduce the national ambient air quality standards for ground-level ozone. If adopted, the proposed rule would reduce ozone from 0.075 parts per million (ppm) to between 0.060 - 0.070 ppm for any eight-hour period.

The new regulations could require utilities, refineries, gas stations and other businesses to implement costly new policies and technologies to drastically reduce emissions of chemicals that can form smog. Business groups assailed the new regulations, arguing that the proposal could lead to unnecessary energy cost increases and job losses at major businesses and refineries.

For more information, see the EPA’s Website.

Gov. Jim Doyle yesterday introduced his 174-page global warming legislation (Assembly Bill 649 and Senate Bill 450), which includes policy recommendations from the Global Warming Task Force he convened in 2008.

Below are some of the key provisions of the legislation:

• Renewable Energy Mandates. The bill increases Wisconsin’s renewable energy mandate from 10 percent by 2015 to 10 percent by 2013. The renewable energy mandate then jumps to 20 percent by 2020, and to 25 percent by 2025.
• Low Carbon Fuel Standard. The bill calls for a “low carbon fuel standard,” which seeks to limit “carbon intensive” fuels. Its ultimate aim is to prohibit oil from Canada’s oil sands and limit corn ethanol. Both fuels are more carbon intensive than conventional gasoline. Wisconsin receives roughly 50 percent of its oil from Canada.
• California Car Low Emission Vehicle Standards. The bill requires Wisconsin to adopt California’s low emission vehicle standards. By doing so, Wisconsin would cede its regulatory authority to California bureaucrats. Automobile manufacturers and car dealers argue there is no need to adopt California’s expensive regulations given that the federal government is currently in the process of promulgating emissions and fuel efficiency regulations equally as stringent as California’s. They also argue that the federal regulations are preferable to a patchwork of state laws.
• Requiring Stricter Building Codes. The bill would force new homes and commercial buildings to follow the stringent International Energy Conservation Code (IECC). The bill also allows the Department of Commerce to require builders to adopt even stricter energy codes. Builders have concerns with such regulations because the stricter energy codes add to the cost of a home and argue that the codes do not provide any energy savings.
• Adds New Greenhouse Gas Emissions Reporting Requirements. The bill grants DNR rulemaking authority to force businesses emitting a certain amount of CO2 to report its emissions to the DNR. After collecting the data, the DNR is required to assess whether the state is meeting its goals, and if not, determine what further regulations should be implemented to reduce CO2.

Businesses affected by the bill voiced their opposition to the bill, arguing that it will increase energy costs, hurt businesses, and lead to fewer jobs. Twenty-three business groups submitted a letter to the Legislature and the Governor last month explaining their concerns with the legislation.

Hamilton Consulting Regulatory Watch will continue to closely monitor this legislation and provide timely updates.

As the Wisconsin Legislature is poised to begin debating climate change legislation, an interesting scenario is taking place in California, which became the first state to adopt sweeping global warming legislation in 2006.

Nearly four years after the law (Assembly Bill 32) was enacted, a movement is afoot in California to stop the law from fully taking effect until the state’s unemployment rate drops below 5.5 percent. Currently, California’s unemployment rate is hovering over 12 percent. According to the New York Times’ blog, Green Inc., a group known as the People’s Advocate and a state legislator are seeking signatures to place an initiative on the ballot.

In Wisconsin, legislators recently unveiled legislation (LRB 3883/1) which includes a number of provisions similar to California’s law - including a low carbon fuel standard, increasing the state’s renewable energy mandate, and forcing Wisconsin to adopt California’s emission standards for vehicles. The bill is expected to be introduced later this month, and public hearings scheduled shortly thereafter.