Gov. Jim Doyle signed into law yesterday SB 273 (2009 WI Act 406), which creates a new type of credit under Wisconsin’s current renewable energy law.

Under current law, electric utilities must provide a certain percentage of their electricity from renewable energy (10 percent by 2015). An electric provider may create credits if it sells more electricity derived from renewable energy in a year than required. Those credits can be banked to comply with the RPS requirements in the future or be sold in an intrastate credit trading market.

SB 273 expands the forms of energy available for the credit. The new act amends current law by adding new forms of energy from which such credits may be created. The new forms of energy that are now eligible for the credit are:

• Solar energy, including solar water heating and direct solar applications such as solar light pipe technology;
• Geothermal energy; and
• Biomass and biogas.

To be eligible for the tax credit, however, the renewable resource must displace the use of electricity derived from conventional resources (coal, oil, nuclear power, or natural gas, except for natural gas used in a fuel cell.)

SB 273 also amends the current definition of “renewable resources.” The new forms of energy considered “renewable resources.”

• Synthetic gas created by the plasma gasification of waste.
• Fuel produced by the pyrolysis of organic or waste material.
• Densified fuel pellets made from certain wastes and having certain properties.

The following forms of energy currently are considered “renewable resources”: fuel cell; tidal or wave action; solar thermal electric or photovoltaic energy; wind power; geothermal technology; and biomass.

This portion of the bill drew criticism from environmentalists. Despite this opposition, Gov. Doyle signed the bill into law.