2009 - 2010 LEGISLATURE
March 26, 2010 - Introduced by Senators Lassa, Holperin, Lehman, Taylor,
Kreitlow and Vinehout, cosponsored by Representatives Mason, Molepske
Jr., Grigsby, Shilling, Vruwink, Turner, Zepnick, Fields and Berceau.
Referred to Committee on Economic Development.
1An Act to amend
20.143 (1) (c), 20.143 (1) (gm), 20.143 (1) (ie), 20.143 (1) (m), 2
20.143 (1) (n) and 196.374 (3) (a); and to create
16.54 (14), 20.143 (1) (hr), 3
20.143 (1) (mr), 196.374 (2) (a) 2. e., 196.374 (2) (a) 4. and 560.128 of the 4
statutes; relating to: loans to manufacturing businesses for energy
5improvements, job creation, retooling, or clean energy production; the
6administration of energy utility programs; providing an exemption from
7emergency rule procedures; requiring the exercise of emergency rule-making
8procedures; and making appropriations.
Analysis by the Legislative Reference Bureau
This bill authorizes the Department of Commerce (department) to make loans
to manufacturing businesses for any of the following activities: 1) implementing
energy efficiency measures in their facilities, 2) retooling to manufacture products
that support the green economy, 3) expanding or establishing domestic clean energy
manufacturing, or 4) creating or retaining workers engaged in the preceding
The bill requires the department to promulgate rules that set clear job-creation
standards for loan recipients, establish minimum energy savings requirements, give
priority to existing manufacturing businesses, and ensure that loans will be
distributed throughout the state. Under the bill, work paid for with loan proceeds
must be performed by contractors and subcontractors who agree to pay employees
who perform the work not less than the prevailing wage, as defined under current
law applicable to certain municipal public works projects.
Funding for loans under the bill comes from current appropriations that fund
a variety of economic development programs, including appropriations that receive
repayments of loans made by the department under other economic development
programs and under the program created in the bill, and from certain federal moneys
received by the state. Under the bill, the governor must deposit federal moneys that
could be used to assist manufacturing businesses in the state retool for, or expand,
production of clean energy in an appropriation account that funds loans under the
program created by the bill, unless the moneys are otherwise appropriated and
subject to applicable federal restrictions.
Current law requires investor-owned electric and natural gas utilities (energy
utilities) to spend a specified percentage of their operating revenues on certain
energy efficiency and renewable resource programs (energy utility programs).
Current law also requires the energy utilities to contract with one or more persons
to administer the energy utility programs. The Public Service Commission (PSC)
has certain oversight duties regarding the energy utility programs, including
approving contracts for administration of the energy utility programs. This bill
requires the energy utility programs to include components for implementing energy
efficiency or renewable resource measures in manufacturing business facilities that
are consistent with the objectives under the loan program described above. The bill
requires a person with whom the energy utilities contract for administering the
energy utility programs to ensure coordination between the loan program and the
energy utility programs that are directed towards industrial and manufacturing
customers of energy utilities. The bill also requires such a person to submit annual
reports to the PSC and the department regarding the energy utility programs that
are directed towards such customers. In addition, the bill requires the PSC to
cooperate with the department to ensure coordination between the energy utility
programs and the loan program.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB651, s. 1
16.54 (14) of the statutes is created to read:
Subsections (1) to (8) do not apply to federal moneys made available 3
to the state that could be utilized to assist manufacturing businesses in the state 4
retool for, or expand, production of clean energy. Unless otherwise appropriated by
law, and subject to any applicable restrictions under federal law, the governor shall 2
deposit such federal moneys in the appropriation account under s. 20.143 (1) (mr).
(c) Wisconsin development fund; grants, loans, reimbursements, and
Biennially, the amounts in the schedule for grants under s. 560.145; for
7loans under s. 560.128;
for grants and loans under s. 560.275 (2) and subch. V of ch. 8
560; for reimbursements under s. 560.167; for the costs specified in s. 560.607; for the 9
loan under 1999 Wisconsin Act 9
, section 9110 (4)
; and for the grants under 1995
10Wisconsin Act 27
, section 9116 (7gg)
, 1995 Wisconsin Act 119
, section 2 (1)
11Wisconsin Act 27
, section 9110 (6g)
, 2003 Wisconsin Act 33
, section 9109 (1d)
(2q), 2007 Wisconsin Act 20
, section 9108 (4u)
, (6c), (7c), (7f), (8c), (8i), (9i), and (10q), 132009 Wisconsin Act 2
, section 9110 (2)
and (3), and 2009 Wisconsin Act 28
, section 149110 (17q)
(gm) Administration of grants and loans.
All moneys received from 18
origination fees under ss. 560.138 (7), 560.139 (4), 560.305 (2), and 560.68 (3), and 19
from transfer fees under s. 560.205 (3) (e), for administering the programs under ss. 20
560.138, 560.139, and 560.304 and under subch. V of ch. 560 and,
for the costs of 21
underwriting grants and loans awarded under ss. 560.138, 560.139, and 560.304 and 22
under subch. V of ch. 560, and for loans under s. 560.128
SB651, s. 4
20.143 (1) (hr) of the statutes is created to read:
(hr) Loans to manufacturing businesses; repayments.
All moneys 2
received from repayments of loans under s. 560.128, to be used for loans to 3
manufacturing businesses under s. 560.128.
(ie) Wisconsin development fund, repayments.
All moneys received 7
in repayment of grants or loans under s. 560.085 (4) (b), 1985 stats., s. 560.10, 2005 8
stats., s. 560.147, 2005 stats., s. 560.16, 1995 stats., s. 560.165, 1993 stats., s. 560.275 9
(2), s. 560.62, 2005 stats., s. 560.63, 2005 stats., s. 560.66, 2005 stats., ss. 560.145, 10
560.157, and 560.45, subch. V of ch. 560, 1989 Wisconsin Act 336
, section 3015 (1m)
, 111989 Wisconsin Act 336
, section 3015 (2m)
, 1989 Wisconsin Act 336
, section 3015
, 1997 Wisconsin Act 27
, section 9110 (7f)
, 1997 Wisconsin Act 310
, section 2
, 1999 Wisconsin Act 9
, section 9110 (4)
, and 2007 Wisconsin Act 20
, section 9108
, not appropriated under par. (gv) to be used for grants and loans under s. 560.275 15
(2), s. 560.45, and subch. V of ch. 560, for loans under s. 560.128
, for the loan under 161999 Wisconsin Act 9
, section 9110 (4)
, for the grant under 2001 Wisconsin Act 16
section 9110 (7g)
, for the grants under 2003 Wisconsin Act 33
, section 9109 (1d)
(2q), for the study under 2009 Wisconsin Act 28
, section 9110 (15u)
, and for 19
reimbursements under s. 560.167.
SB651, s. 6
20.143 (1) (m) of the statutes is amended to read:
(m) Federal aid, state operations.
All moneys received from the 22
federal government as authorized by the governor under s. 16.54, for state operations 23and for loans under s. 560.128
SB651, s. 7
20.143 (1) (mr) of the statutes is created to read:
(mr) Loans to manufacturing businesses.
All moneys received from 2
the federal government for assisting manufacturing businesses in retooling for, or 3
expanding, production of clean energy and deposited by the governor under s. 16.54 4
(14), to be used for loans under s. 560.128.
SB651, s. 8
20.143 (1) (n) of the statutes is amended to read:
(n) Federal aid, local assistance.
All moneys received from the 7
federal government, as authorized by the governor under s. 16.54, for local assistance 8and for loans under s. 560.128
SB651, s. 9
196.374 (2) (a) 2. e. of the statutes is created to read:
(a) 2. e. Components to implement energy efficiency or renewable 11
energy measures in facilities of manufacturing businesses in this state that are 12
consistent with the objectives under s. 560.128 (1) (a).
SB651, s. 10
196.374 (2) (a) 4. of the statutes is created to read:
(a) 4. A person contracted to administer the programs under subd. 15
1. shall ensure coordination between the programs directed towards industrial and 16
manufacturing customers under subd. 1. and the program under s. 560.128. 17
Annually, a person contracted to administer the programs under subd. 1. shall 18
submit a report to the commission and to the department of commerce regarding the 19
programs directed towards industrial and manufacturing customers under subd. 1.
SB651, s. 11
196.374 (3) (a) of the statutes is amended to read:
(a) In general.
The commission shall have oversight of programs 22
under sub. (2). The commission shall maximize coordination of program delivery, 23
including coordination between programs under subs. (2) (a) 1., (b) 1. and 2., and (c) 24
and (7), ordered programs, low-income weatherization programs under s. 16.957, 25
renewable resource programs under s. 196.378, and other energy efficiency or
renewable resource programs. The commission shall cooperate with the department 2
of natural resources to ensure coordination of energy efficiency and renewable 3
resource programs with air quality programs and to maximize and document the air 4
quality improvement benefits that can be realized from energy efficiency and 5
renewable resource programs. The commission shall cooperate with the department
6of commerce to ensure coordination of energy efficiency and renewable resource
7programs under sub. (2) (a) 2. e. with the loan program under s. 560.128 (1) (a).
SB651, s. 12
560.128 of the statutes is created to read:
9560.128 Loans to manufacturing businesses. (1)
From the appropriations 10
under s. 20.143 (1) (c), (gm), (hr), (ie), (m), (mr), and (n), the department may make 11
a loan to a manufacturing business in this state to do any of the following:
(a) Implement energy efficiency or renewable energy measures in their 13
facilities to enhance their competitiveness.
(b) Retool existing facilities to manufacture products that support the green 15
(c) Expand or establish domestic clean energy manufacturing operations.
(d) Create or retain jobs for workers engaged in activities under pars. (a) to (c).
The department shall promulgate rules establishing eligibility criteria that 19
do all of the following:
(a) Set clear job-creation standards for loan recipients.
(b) Establish minimum energy savings that an eligible manufacturer must 22
expect will result from the loan's utilization.
(c) Give priority to existing manufacturing businesses.
(d) Ensure that loans under this section will be distributed to manufacturing 25
businesses throughout the state.
(e) Requires all work paid for with the proceeds of a loan under this section be 2
performed by a contractor or subcontractor that agrees to pay all employees 3
performing work paid for with the proceeds of a loan under this section who would 4
be entitled to receive the prevailing wage rate under s. 66.0903, if the improvement 5
or application were a project of public works under s. 66.0903, not less than the 6
prevailing wage rate determined under s. 66.0903 (3) or (6).