AB253: Bill Text

LRB-0965/1

MDK:hmh&wlj:km

2001 - 2002 LEGISLATURE

2001 Assembly BILL 253

March 26, 2001 - Introduced by Representatives Hoven, Ziegelbauer, Reynolds, Ainsworth, Albers, Duff, Freese, Grothman, Gunderson, Gundrum, Hahn, Huebsch, Hundertmark, Jensen, Jeskewitz, Johnsrud, Kestell, Kreibich, Ladwig, F. Lasee, M. Lehman, Leibham, D. Meyer, Montgomery, Musser, Nass, Olsen, Owens, Pettis, Powers, Skindrud, Starzyk, Stone, Townsend, Urban, Vrakas, Walker, Ward and J. Fitzgerald, cosponsored by Senators Zien, Darling, Ellis, S. Fitzgerald, Harsdorf, Huelsman, Roessler, Schultz and Welch. Referred to Committee on Energy and Utilities.

AB253,1,10 An Act to repeal 16.957 (1) (c), 16.957 (1) (h), 16.957 (1) (n), 16.957 (1) (o), 16.957 (1) (p), 16.957 (1) (s), 16.957 (1) (u), 16.957 (1) (v), 16.957 (1) (w), 16.957 (1) (x), 16.957 (2) (a) 1., 2., 3. and 4., 16.957 (2) (c) 5., 16.957 (2) (d) 1., 16.957 (2) (d) 3., 16.957 (4), 16.957 (5), 76.28 (1) (eg), 76.28 (1) (gr), 76.48 (1g) (dm), 76.48 (1g) (fm) and 77.54 (44); to renumber and amend 16.957 (2) (a) (intro.); to amend 16.957 (2) (b) 2., 16.957 (2) (c) 1., 16.957 (2) (c) 4., 25.96, 76.28 (1) (d), 76.48 (1g) (d), 196.374 (1) (c), 196.374 (3) and 196.374 (4); and to create 16.957 (1) (he), (hm), (hp) and (hs), 16.957 (2) (d) 5. and 6. and 196.374 (3m) of the statutes; relating to: eliminating utility public benefits fees and commitment to community programs.

Analysis by the Legislative Reference Bureau

Under current law, the department of administration (DOA) is required to establish programs for providing energy assistance to low-income households (low-income programs), for conservation and efficiency services (conservation programs), and for encouraging the development and use of renewable energy resources (renewables programs). These programs are funded from three sources.

The first funding source consists of public benefits fees that DOA collects from nonmunicipal electric public utilities, which must charge the public benefits fees to their customers. Municipal electric public utilities and retail electric cooperatives (municipal utilities and cooperatives) are also required to charge a public benefits fee to their customers or members. Every three years, a municipal utility or cooperative may elect to contribute all or a specified portion of the public benefits fees to DOA for the programs. A municipal utility or cooperative that does not elect to contribute all of the public benefits fees to DOA must spend specified portions of the fees on its own "commitment to community programs," which are defined as low-income assistance and conservation programs. DOA deposits all public benefits fees received from nonmunicipal electric public utilities, municipal utilities, and cooperatives into the utility public benefits fund.

The second funding source consists of contributions made by gas and electric utilities. Under current law, the public service commission (PSC) is required to determine the amount that a gas or electric utility spent on low-income, conservation, renewables, and environmental research and development programs in 1998. Each year, a gas or electric utility must spend a decreasing portion of the amount spent on each type of program and contribute an increasing portion of such amount to the PSC for deposit in the utility public benefits fund.

The third funding source consists of voluntary contributions made by customers of nonmunicipal electric public utilities and municipal utilities and members of cooperatives. The voluntary contributions are also deposited into the utility public benefits fund.

This bill eliminates the first funding source described above. Under the bill, nonmunicipal electric public utilities, municipal utilities, and cooperatives are not required to charge public benefits fees to their customers or members. In addition, the bill eliminates the requirement for municipal utilities and cooperatives to establish commitment to community programs.

The bill also makes changes to the second funding source described above. The bill requires DOA annually to submit a plan to the joint committee on finance (JCF) for adjusting the amount that electric utilities are required to contribute to the PSC for deposit into the utility public benefits fund. In the plan, DOA must compare the amount of funding received by the state in that year under the federal low-income home energy and weatherization assistance programs with the amount of funding received by the state in federal fiscal year 1999-2000 under those programs. If the amount received in that year is greater than the amount received in federal fiscal year 1999-2000, the plan must decrease the contributions that gas and electric utilities are required to make to the PSC for low-income programs by an amount equal to the difference. However, if the amount of the difference is equal to or greater than the contributions that the PSC has otherwise required electric utilities to make for low-income programs, then no contributions for low-income programs are required. DOA must implement a plan that is modified or approved by JCF.

For further information see the state and local 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:

AB253, s. 1 Section 1. 16.957 (1) (c) of the statutes is repealed.

AB253, s. 2 Section 2. 16.957 (1) (h) of the statutes is repealed.

AB253, s. 3 Section 3. 16.957 (1) (he), (hm), (hp) and (hs) of the statutes are created to read:

AB253,3,7 16.957 (1) (he) "Federal base amount" means all moneys received from the federal government under 42 USC 8621 to 8629 in federal fiscal year 1999-2000 and under 42 USC 6861 to 6873 in federal program year 1999-2000.

AB253,3,9 (hm) "Federal fiscal year" means the period beginning on October 1 and ending on the following September 30.

AB253,3,14 (hp) "Federal funding amount" means all moneys received from the federal government under 42 USC 8621 to 8629 in a federal fiscal year after federal fiscal year 1999-2000 and under 42 USC 6861 to 6873 in the federal program year beginning in the same calendar year as the calendar year in which the federal fiscal year begins.

AB253,3,16 (hs) "Federal program year" means the period beginning on April 1 and ending on the following March 31.

AB253, s. 4 Section 4. 16.957 (1) (n) of the statutes is repealed.

AB253, s. 5 Section 5. 16.957 (1) (o) of the statutes is repealed.

AB253, s. 6 Section 6. 16.957 (1) (p) of the statutes is repealed.

AB253, s. 7 Section 7. 16.957 (1) (s) of the statutes is repealed.

AB253, s. 8 Section 8. 16.957 (1) (u) of the statutes is repealed.

AB253, s. 9 Section 9. 16.957 (1) (v) of the statutes is repealed.

AB253, s. 10 Section 10. 16.957 (1) (w) of the statutes is repealed.

AB253, s. 11 Section 11. 16.957 (1) (x) of the statutes is repealed.

AB253, s. 12 Section 12. 16.957 (2) (a) (intro.) of the statutes is renumbered 16.957 (2) (a) and amended to read:

AB253,4,11 16.957 (2) (a) Low-income programs. After holding a hearing, establish programs to be administered by the department for awarding grants from the appropriation under s. 20.505 (10) (r) to provide low-income assistance. In each fiscal year, the amount awarded under this paragraph shall be sufficient to ensure that an amount equal to 47% of the sum of the following is spent for weatherization and other energy conservation services:

AB253, s. 13 Section 13. 16.957 (2) (a) 1., 2., 3. and 4. of the statutes are repealed.

AB253, s. 14 Section 14. 16.957 (2) (b) 2. of the statutes is amended to read:

AB253,4,22 16.957 (2) (b) 2. For each fiscal year after fiscal year 2003-04, determine whether to continue, discontinue, or reduce any of the programs established under subd. 1. and determine the total amount necessary to fund the programs that the department determines to continue or reduce under this subdivision. The department shall notify the commission if the department determines under this subdivision to reduce funding by an amount that is greater than the portion of the public benefits fee specified in sub. (4) (c) 2. The notice shall specify the portion of the reduction that exceeds the amount of public benefits fees specified in sub. (4) (c) 2.

AB253, s. 15 Section 15. 16.957 (2) (c) 1. of the statutes is amended to read:

AB253,5,5 16.957 (2) (c) 1. Eligibility requirements for low-income assistance under programs established under par. (a). The rules shall prohibit a person who receives low-income assistance from a municipal utility or retail electric cooperative under a program specified in sub. (5) (d) 2. b. or 3. a. from receiving low-income assistance under programs established under par. (a) unless the person is a customer of a utility, as defined in s. 196.374 (1) (c), that makes a contribution to the commission under s. 196.374 (3) for deposit in the utility public benefits fund.

AB253, s. 16 Section 16. 16.957 (2) (c) 4. of the statutes is amended to read:

AB253,5,17 16.957 (2) (c) 4. Requirements for electric utilities , other than municipal utilities, to allow customers to include voluntary contributions to assist in funding a program established under par. (a) or (b) 1. with bill payments for electric service. The rules may require an electric utility to provide a space on an electric bill in which a customer may indicate the amount of a voluntary contribution and the customer's preference regarding whether a contribution should be used for a program established under par. (a) or (b) 1. a. or b. The rules shall establish requirements and procedures for electric utilities to pay to the department any voluntary contributions included with bill payments and to report to the department customer preferences regarding use of the contributions. The department shall deposit all contributions received under this paragraph subdivision in the utility public benefits fund.

AB253, s. 17 Section 17. 16.957 (2) (c) 5. of the statutes is repealed.

AB253, s. 18 Section 18. 16.957 (2) (d) 1. of the statutes is repealed.

AB253, s. 19 Section 19. 16.957 (2) (d) 3. of the statutes is repealed.

AB253, s. 20 Section 20. 16.957 (2) (d) 5. and 6. of the statutes are created to read:

AB253,6,10 16.957 (2) (d) 5. Annually submit to the joint committee on finance a plan for adjusting the amount that utilities are required to contribute to the commission under s. 196.374 (3) based on the amount of moneys received from the federal government under 42 USC 6881 to 6873 and 42 USC 8621 to 8629. A plan under this subdivision shall require the department to determine the difference between the federal base amount and the federal funding amount for each federal fiscal year after federal fiscal year 1999-2000 and, if the federal funding amount is greater than the federal base amount, require the commission to decrease the contributions that utilities are required to make to the commission for low-income assistance under s. 196.374 (3) in the calendar year following the start of the federal fiscal year by an amount equal to the difference between the federal funding amount and the federal base amount, except that if the difference is equal to or greater than the contributions that are otherwise required for low-income assistance under s. 196.374 (3), no contributions shall be required for low-income assistance.

AB253,6,12 6. Implement a plan specified in subd. 5. that is approved or modified by the joint committee on finance.

AB253, s. 21 Section 21. 16.957 (4) of the statutes is repealed.

AB253, s. 22 Section 22. 16.957 (5) of the statutes is repealed.

AB253, s. 23 Section 23. 25.96 of the statutes is amended to read:

AB253,6,20 25.96 Utility public benefits fund. There is established a separate nonlapsible trust fund designated as the utility public benefits fund, consisting of deposits by the public service commission under s. 196.374 (3), public benefits fees received under s. 16.957 (4) (a) and (5) (c) and (d) and contributions received under s. 16.957 (2) (c) 4. and (d) 2.