AB843,7,2221 d. Specify the environmental control property that is created and that may be
22used to pay or secure environmental trust bonds.
AB843,8,223 3. A financing order issued to an energy utility may provide that the energy
24utility's acquisition of environmental control property specified in subd. 2. d. is
25conditioned upon, and shall be simultaneous with, the sale of the environmental

1control property to an assignee and the pledge of the environmental control property
2to secure environmental trust bonds.
AB843,8,53 4. Except as provided in subd. 2. c., a financing order is irrevocable and the
4commission may not reduce, impair, or otherwise adjust environmental control
5charges approved in the order.
AB843,8,126 (c) Subsequent orders. The commission may issue a subsequent financing order
7that provides for retiring or refunding environmental trust bonds issued pursuant
8to the original financing order if the commission finds that environmental trust
9bonds issued pursuant to the subsequent financing order have lower financing costs
10than the environmental trust bonds issued pursuant to the original financing order
11or that retiring or refunding the environmental trust bonds issued pursuant to the
12original financing order is otherwise in the public interest.
AB843,8,1713 (d) Judicial review. A financing order or an order rejecting an application
14under par. (b) 1. is reviewable by the circuit court for Dane County under ch. 227,
15except that the court shall proceed to hear and determine the action as expeditiously
16as possible and give the action precedence over other matters not accorded similar
17precedence by law.
AB843,8,2018 (e) Effect of orders. 1. A financing order shall remain in effect until the
19environmental trust bonds issued pursuant to the order have been paid in full and
20the financing costs of the bonds have been recovered in full.
AB843,8,2221 2. A financing order issued to an energy utility shall remain in effect and
22unabated notwithstanding the bankruptcy of the energy utility.
AB843,9,223 3. An application by an energy utility for a financing order and commission
24approval of a financing order are in addition to and do not replace any other

1application or approval under this chapter that may be required for environmental
2control activities.
AB843,9,11 3(3) Exceptions to commission jurisdiction. If the commission issues a
4financing order to an energy utility, the commission may not, in exercising its powers
5and carrying out its duties under this chapter, including any power or duty regarding
6rate making, consider the environmental trust bonds issued pursuant to the order
7to be the debt of the energy utility, the environmental control charges paid under the
8order to be the revenue of the energy utility, or the environmental control costs or
9financing costs specified in the order to be the costs of the energy utility, nor may the
10commission determine that any action taken by an energy utility that is consistent
11with the order is unjust or unreasonable.
AB843,9,15 12(4) Energy utility duties. (a) An energy utility shall place the proceeds of any
13environmental trust bonds issued pursuant to a financing order in a separate
14account and may use the proceeds only for paying environmental control costs and
15financing costs.
AB843,9,1916 (b) An energy utility shall annually provide to its customers a concise
17explanation of the environmental control charges approved in a financing order
18issued to the energy utility. The explanation may be made by bill inserts, Web site
19information, or other appropriate means.
AB843,9,2220 (c) The failure of an energy utility to comply with this subsection shall not
21invalidate, impair, or affect any financing order, environmental control property,
22environmental control charge, or environmental control bonds.
AB843,9,25 23(5) Environmental control property. (a) In general. 1. Environmental
24control property that is specified in a financing order shall constitute a present
25property right notwithstanding that the imposition and collection of environmental

1control charges depend on the energy utility to which the order is issued performing
2its servicing functions relating to the collection of environmental control charges and
3on future energy consumption. Such property is considered to exist whether or not
4the revenues or proceeds arising from the property have accrued and whether or not
5the value of the property is dependent on the receipt of service by customers of an
6energy utility.
AB843,10,97 2. Environmental control property specified in a financing order shall continue
8to exist until the environmental trust bonds issued pursuant to the order are paid
9in full and all financing costs of the bonds have been recovered in full.
AB843,10,1510 3. Environmental control property specified in a financing order issued to an
11energy utility may be transferred, sold, conveyed, or assigned to any person,
12including an affiliate of the energy utility, and may be pledged to secure
13environmental trust bonds issued pursuant to the order. Each such transfer, sale,
14conveyance, assignment, or pledge by an energy utility or affiliate of an energy utility
15is considered to be a transaction in the ordinary course of business.
AB843,10,2216 4. If an energy utility defaults on any required payment of revenues arising
17from environmental control property specified in a financing order, the commission
18or a court, upon application by an interested party, and without limiting any other
19remedies available to the applying party, shall order the sequestration and payment
20of the revenues. Any such order shall remain in full force and effect notwithstanding
21any bankruptcy, reorganization, or other insolvency proceedings with respect to the
22energy utility.
AB843,11,223 5. The interest of an assignee or pledgee in environmental control property
24specified in a financing order issued to an energy utility, and in the revenue and
25collections arising from that property, are not subject to setoff, counterclaim,

1surcharge, or defense by the energy utility or any other person or in connection with
2the bankruptcy of the energy utility or any other entity.
AB843,11,93 6. Any successor to an energy utility, whether pursuant to any bankruptcy,
4reorganization, or other insolvency proceeding, or pursuant to any merger or
5acquisition, sale, or transfer by operation of law, as a result of energy utility
6restructuring or otherwise, shall perform and satisfy all obligations of the energy
7utility under a financing order in the same manner and to the same extent as the
8energy utility including collecting and paying to the person entitled to receive them
9revenues with respect to the environmental control property.
AB843,11,1510 (b) Security interests. Except as otherwise provided in this paragraph, the
11creation, perfection, and enforcement of security interests in environmental control
12property to secure environmental trust bonds are governed by ch. 409.
13Notwithstanding ch. 409, with regard to creating, perfecting, and enforcing a valid
14security interest in environmental control property to secure environmental trust
15bonds, all of the following apply:
AB843,11,1816 1. The description of environmental control property in a security agreement
17is sufficient if the description refers to this section and the financing order creating
18the environmental control property.
AB843,11,2519 2. A security interest is created, valid, binding, and perfected at the time a
20security agreement is made and attaches without any physical delivery of collateral
21or other act, and the lien of such security interest shall be valid, binding, and
22perfected against all parties having claims of any kind in tort, contract, or otherwise
23against the person granting the security interest, regardless of whether such parties
24have notice of the lien. The filing or recording of a financial statement or instrument
25in which such a security interest is created is not required.
AB843,12,4
13. A security interest in environmental control property is a continuously
2perfected security interest and has priority over any other lien created by operation
3of law or otherwise, which subsequently attaches to the environmental control
4property.
AB843,12,75 4. The priority of a security interest created under this paragraph is not
6affected by the commingling of proceeds arising from environmental control property
7with other amounts.
AB843,12,108 5. Any changes that the commission makes to a financing order that creates
9the environmental control property does not affect the validity, perfection, or priority
10of a security interest in the environmental control property.
AB843,12,1311 (c) Sales. The sale, assignment, and transfer of environmental control property
12are governed by this paragraph. All of the following apply to a sale, assignment, or
13transfer under this paragraph:
AB843,12,2014 1. The sale, assignment, or transfer is an absolute transfer of, and not a pledge
15of or secured transaction relating to, the seller's right, title, and interest in, to, and
16under the environmental control property, if the documents governing the
17transaction expressly state that the transaction is a sale or other absolute transfer.
18After such a transaction, the environmental control property is not subject to any
19claims of the seller or the seller's creditors, other than creditors holding a prior
20security interest in the environmental control property perfected under par. (b).
AB843,12,2321 2. The characterization of the sale, assignment, or transfer as an absolute
22transfer under subd. 1. and the corresponding characterization of the purchaser's
23property interest is not affected by any of the following factors:
AB843,12,2524 a. Commingling of amounts arising with respect to the environmental control
25property with other amounts.
AB843,13,3
1b. The retention by the seller of a partial or residual interest, including an
2equity interest, in the environmental control property, whether direct or indirect, or
3whether subordinate or otherwise.
AB843,13,44 c. Any recourse that the purchaser may have against the seller.
AB843,13,65 d. Any indemnifications, obligations, or repurchase rights made or provided by
6the seller.
AB843,13,77 e. The responsibility of the seller to collect environmental control charges.
AB843,13,98 f. The treatment of the sale, assignment, or transfer for tax, financial reporting,
9or other purposes.
AB843,13,14 10(6) Environmental trust bonds not public debt. The state is not liable on
11environmental trust bonds and the bonds are not a debt of the state. An issue of
12environmental trust bonds does not, directly or indirectly or contingently, obligate
13the state or a political subdivision of the state to levy any tax or make any
14appropriation for payment of the bonds.
AB843,13,17 15(7) Environmental trust bonds as legal investments. Any of the following
16may legally invest any sinking funds, moneys, or other funds belonging to them or
17under their control in environmental trust bonds:
AB843,13,1918 (a) The state, the investment board, public officers, municipal corporations,
19political subdivisions, and public bodies.
AB843,13,2320 (b) Banks and bankers, savings and loan associations, credit unions, trust
21companies, savings banks and institutions, investment companies, insurance
22companies, insurance associations, and other persons carrying on a banking or
23insurance business.
AB843,13,2424 (c) Personal representatives, guardians, trustees, and other fiduciaries.
AB843,14,2
1(8) State pledge. (a) In this subsection, "bondholder" means a person who
2holds an environmental trust bond.
AB843,14,43 (b) The state pledges to and agrees with bondholders that the state will not do
4any of the following:
AB843,14,65 1. Take or permit any action that impairs the value of environmental control
6property.
AB843,14,117 2. Except as allowed under this section, reduce, alter, or impair environmental
8control charges that are imposed, collected, and remitted for the benefit of the
9bondholders until any principal, interest, premium, or other charge incurred, or
10contract to be performed, in connection with environmental trust bonds held by the
11bondholders are paid or performed in full.
AB843,14,1312 (c) Any person who issues environmental trust bonds is allowed to include the
13pledge specified in par. (b) in the bonds and relating documentation.
AB843,14,17 14(9) Conflicts. In the event of conflict between this section and any other law
15regarding the attachment, assignment, or perfection, or the effect of perfection, or
16priority of any security interest in environmental control property, this section to the
17extent of the conflict shall govern.
AB843,14,23 18(10) Effect of invalidity on actions. Effective on the date that environmental
19trust bonds are first issued under this section, if any provision of this section is held
20to be invalid or is invalidated, superseded, replaced, repealed, or expires for any
21reason, that occurrence shall not affect any action allowed under this section that is
22taken by an energy utility, an assignee, a collection agent, or a party to a transaction
23and any such action shall remain in full force and effect.
AB843, s. 3 24Section 3. 201.01 (3) of the statutes is renumbered 201.01 (3) (intro.) and
25amended to read:
AB843,15,3
1201.01 (3) (intro.) "Securities" means capital stock and evidences of
2indebtedness of a public service corporation, not including, however, (a) any but do
3not include any of the following:
AB843,15,6 4(a) Any obligation of a public service corporation which is not a public utility
5as defined in the federal power act Power Act, falling due one year or less after its
6date and bearing date not later than the day of sale; or (b) any.
AB843,15,10 7(b) Any evidence of indebtedness of a public service corporation which is a
8public utility as defined in the federal power act Power Act, the issuance, renewal or
9assumption of which is exempt from sec. section 204 (a) of the federal power act
10Power Act by the provisions of sec. section 204 (e) thereof; or (c) any.
AB843,15,13 11(c) Any obligation issued to the United States of America in connection with
12loans for rural telecommunications facilities made pursuant to the rural
13electrification act
Rural Electrification Act of 1936, as amended, or (d) any.
AB843,15,15 14(d) Any securities issued by a corporation organized under ch. 185 for the
15purpose of furnishing telecommunications service in rural areas.
AB843, s. 4 16Section 4. 201.01 (3) (e) of the statutes is created to read:
AB843,15,1817 201.01 (3) (e) Any environmental trust bonds issued pursuant to a financing
18order of the commission under s. 196.027 (2).
AB843,15,1919 (End)
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