To: 
Senate 
Select 
Committee 
on 
Clean 
Energy 
Assembly 
Special 
Committee 
on 
Clean 
Energy 
Jobs 


Copy: 
Members, 
Wisconsin 
Legislature 


From: 
Aggregate 
Producers 
of 
Wisconsin 


Associated 
Builders 
& 
Contractors 
of 
Wisconsin, 
Inc 
Associated 
General 
Contractors 
of 
Wisconsin 
Eau 
Claire 
Area 
Chamber 
of 
Commerce 
Fond 
du 
Lac 
Association 
of 
Commerce 
Forward 
Janesville, 
Inc. 
Fox 
Cities 
Chamber 
of 
Commerce 
& 
Industry 
Green 
Bay 
Area 
Chamber 
of 
Commerce 
Heart 
of 
the 
Valley 
Chamber 
of 
Commerce 
Independent 
Business 
Association 
of 


Wisconsin 
La 
Crosse 
Area 
Chamber 
of 
Commerce 
Marshfield 
Area 
Chamber 
of 
Commerce 
& 


Industry 
Menomonee 
Falls 
Chamber 
of 
Commerce 
Metropolitan 
Milwaukee 
Association 
of 


Commerce 
Midwest 
Equipment 
Dealers 
Association 
Midwest 
Food 
Processors 
Association 
National 
Federation 
of 
Independent 


Businesses 
– 
Wisconsin 
Chapter 
Oshkosh 
Chamber 
of 
Commerce 


Racine 
Area 
Manufacturers 
& 
Commerce 
Waukesha 
County 
Chamber 
of 
Commerce 
Wausau 
Region 
Chamber 
of 
Commerce 
West 
Bend 
Area 
Chamber 
of 
Commerce 
Wisconsin 
Automobile 
& 
Truck 
Dealers 
Assn. 
Wisconsin 
Automotive 
Aftermarket 
Association 
Wisconsin 
Automotive 
Parts 
Association 
Wisconsin 
Cast 
Metals 
Association 
Wisconsin 
Economic 
Development 
Association 
Wisconsin 
Engine 
Manufacturers 
& 
Distributors 
Alliance 
Wisconsin 
Housing 
Alliance 
Wisconsin 
Independent 
Businesses 
Wisconsin 
Industrial 
Energy 
Group 
Wisconsin 
Manufacturers 
& 
Commerce 
Wisconsin 
Motor 
Carriers 
Association 
Wisconsin 
Paper 
Council 
Wisconsin 
Petroleum 
Council 
Wisconsin 
Petroleum 
Marketers 
& 
Convenience 
Store 


Association 
Wisconsin 
Retail 
Council 
Wisconsin 
Utility 
Investors, 
Inc. 


Date: 
April 
15, 
2010 


Subject: 
Substitute 
Amendment 
to 
SB 
450 
& 
AB 
649 
(Global 
Warming 
Bill) 


As 
representatives 
of 
Wisconsin’s 
manufacturing, 
agriculture, 
construction, 
transportation 
and 
economic 
development 
communities, 
we 
continue 
to 
oppose 
the 
amended 
global 
warming 
legislation 
(AB 
649/SB 
450). 
Although 
the 
substitute 
amendment 
removes 
a 
number 
of 
highly 
controversial 
provisions 
– 
such 
as 
California’s 
low 
emission 
vehicle 
standards 
and 
low 
carbon 
fuel 
standards 
– 
the 
bill 
still 
contains 
provisions 
that 
will 
substantially 
increase 
electricity 
rates 
and 
harm 
Wisconsin’s 
economy. 
In 
fact, 
not 
only 
does 
the 
substitute 
amendment 
fail 
to 
address 
the 
significant 
increase 
in 
energy 
costs, 
the 
amendment 
language 
will 
make 
the 
bill 
worse 
by 
further 
increasing 
electric 
rates. 


While 
we 
continue 
to 
review 
the 
150-page 
substitute 
amendment, 
we 
note 
that 
many 
of 
our 
concerns 
were 
not 
addressed. 
For 
example, 
the 
substitute 
amendment 
still 
contains 
the 
two 
most 
costly 
provisions: 
1) 
a 
25 
percent 
Renewable 
Portfolio 
Standard 
(RPS) 
by 
2025; 
and 
2) 
new 
energy 
efficiency 
surtaxes. 



Equally 
alarming, 
the 
substitute 
amendment 
requires 
the 
Public 
Service 
Commission 
(PSC) 
to 
establish 
energy 
taxes 
and 
policies 
that 
will 
ensure 
Wisconsin 
meets 
or 
exceeds 
the 
aggressive 
greenhouse 
gas 
emission 
reduction 
targets 
in 
the 
bill 
(a 
75% 
reduction 
by 
2050). 
In 
this 
regard, 
the 
amendment 
takes 
the 
voluntary 
targets 
from 
the 
original 
bill, 
and 
makes 
them 
enforceable 
at 
an 
enormous 
cost 
to 
our 
jobs 
and 
economy. 


Renewable 
Portfolio 
Standard 


The 
substitute 
amendment 
still 
includes 
the 
most 
costly 
provision 
– 
a 
25 
percent 
renewable 
energy 
mandate. 
Although 
the 
substitute 
amendment 
makes 
a 
few 
changes 
to 
the 
original 
bill, 
those 
changes 
are 
minor 
and 
will 
do 
nothing 
to 
bring 
down 
the 
substantial 
costs 
associated 
with 
this 
provision. 
Last 
week, 
Wisconsin 
utilities 
estimated 
the 
cost 
of 
complying 
with 
the 
25 
percent 
RPS 
at 
staggering 
$15 
billion 
– 
costs 
that 
will 
be 
passed 
along 
to 
homeowners 
and 
businesses 
alike. 
We 
simply 
cannot 
afford 
to 
hit 
our 
economy 
with 
these 
costs 
at 
a 
time 
when 
consumers 
can 
least 
afford 
it, 
and 
when 
we 
already 
have 
a 
30 
percent 
oversupply 
of 
electric 
generation. 


Energy 
Efficiency 
Provisions 


Existing 
law 
caps 
how 
much 
large 
industrial 
ratepayers 
must 
pay 
for 
energy 
efficiency 
programs. 
Existing 
law 
also 
provides 
other 
limitations 
that 
apply 
to 
all 
ratepayers. 
The 
amendment 
effectively 
eliminates 
these 
limits 
and 
directs 
the 
Public 
Service 
Commission 
to 
assess 
whatever 
fees 
it 
deems 
necessary 
to 
enable 
the 
state 
to 
meet 
or 
exceed 
the 
bill’s 
greenhouse 
emission 
and 
energy 
consumption 
reduction 
goals. 
This 
will 
result 
in 
excessive 
utility 
fees 
on 
industrial, 
commercial, 
and 
residential 
ratepayers 
far 
in 
excess 
of 
what 
is 
now 
levied. 
Based 
upon 
PSC 
analysis, 
this 
new 
energy 
tax 
is 
expected 
to 
cost 
Wisconsinites 
at 
least 
$700 
million 
per 
year 
– 
the 
equivalent 
of 
an 
11 
percent 
increase 
in 
the 
state 
income 
tax. 


In 
conclusion, 
we 
continue 
to 
oppose 
passage 
of 
this 
legislation 
because 
it 
will 
significantly 
increase 
electric 
rates, 
result 
in 
job 
loss, 
and 
make 
our 
state 
a 
less 
competitive 
place 
to 
do 
business. 


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