Andy Engel and Andy CookThe Hamilton Consulting Group

Hamilton-consulting.com

Regulation of Dams◦ Imposes new regulations on dams regulated by

the State.◦ Did not exempt dams that are regulated by the

federal government Great Lakes Compact Water Fees

◦ Adds new water fees for entities that withdraw water from the Great Lakes Basin

◦ Budget gives DNR new authority to impose fees based on the amount of water withdrawn, but contained no restrictions.

◦ Working to amend budget to include caps on fees.

Joint and several liability

◦ Current law provides that co-defendants that are 51% or more at fault can be held 100% liable for plaintiff’s damages.

◦ Budget provision would allow a co-defendant as little as 1% at fault to be 100% liable for damages.

Advising jurors◦ The court must inform the jury how the jury’s findings

on fault affect responsibility for damages. ◦ Existing law limits a jury’s duty to fact finding,

consistent with over a hundred-year rule of jurisprudence.

Combined fault◦ A person or business that is less at fault than the

plaintiff can be sued so long as the “combined” fault of all persons sued is equal or greater than the plaintiff.

◦ Existing law requires the plaintiff to be less at fault than each defendant he or she is suing.

Issued Final Report in July 2008

232-pages with over 50 policy recommendations

Recommends a regional or federal cap-and-trade policy.

Recommends that any cap-and-trade policy should mitigate impacts to Wisconsin’s economy.

Does not provide any specific recommendations for a cap.

Suggests that threshold for inclusion would be annual emissions of 25,000 metric tons of CO2.

Allowances (Credits)◦ Recommends a transition period of 10 years

where 90% of credits would be allocated at a fix cost of $2 per credit.

◦ Recommended that CO2 emissions from biomass facilities should not require allowances for all or a portion of the transition period.

Recommends moving the current 10% RPS requirement from 2015 to 2013.

20% by 2020 25% by 2025 Biomass

◦ Recommends expanding definition of “renewable” to include thermal portion of Wisconsin co-generation plants fired with biomass.

Current law requires utilities to spend 1.2% of annual operating revenues for energy efficiency and renewable resource programs.

Task Force recommends changing program from the current spending cap to a “savings goal.”

Recommends establishing a given energy savings goal and then funding the program based on that goal.

Recommends an annual 2% reduction of electrical load (current program achieves roughly a .4 to .5% annual reduction in electrical usage).

Final Report predicts costs would increase to $285 million by 2012 (up from roughly $150 million in 2009).

Web site links:

http://dnr.wi.gov/environmentprotect/gtfgw/(Wisconsin’s Strategy for Reducing Global

Warming)

http://www.hamilton-consulting.com/pdf/09jan_climate-change-cook.pdf

(Energy and Climate Change Policy in Wisconsin and the U.S.)

http://www.hamilton-consulting.com/tidbits/index.html

(Political Tidbits – Hamilton Consulting Group’s)

◦ Six states/one Canadian province – Wisconsin, Iowa, Illinois, Kansas, Michigan, Minnesota, Manitoba

◦ 15% to 20% reduction from 2005 CO2 levels by 2020

◦ 60% to 80% below 2005 levels by 2050.

◦ Cap-and-trade/Complementary Policies

Support for regional cap-and-trade waning.

Held last meeting this week.

Submitting final recommendations as a template for federal legislation.

Waxman-Markey Bill (American Clean Energy and Security Act) ◦ Federal cap-and-trade◦ 17% below 2005 greenhouse gas levels by 2020.◦ Will give away for free to electric utilities 35% of

the emissions permits (initially). ◦ Originally required electricity producers to

generate 25% of their power from renewable sources by 2025.

◦ Now only 15% by 2020 with 5% coming from improvements in energy efficiency.

◦ Gives EPA broad authority to regulate numerous sectors that emit CO2 and other greenhouse gases.

◦ Response to U.S. Supreme Court decision Massachusetts v. EPA.

◦ Could be impetus to force Congress to pass climate change legislation.

On Tuesday, EPA Administrator Lisa Jackson told a Senate panel that the endangerment finding “does not mean regulation.”

“Making the decision to regulate CO2 under the Clean Air Act for the first time is likely to have serious economic consequences for regulated entities throughout the U.S. economy, including small business and small communities.” ◦ Office of Management and Budget

Andy Cook – cook@hamilton-consulting.com

Andy Engel – engel@hamilton-consulting.com

(608) 258-9506