Governor Introduces Global Warming Bill

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.