SB517: Bill Text

SB517,8,5 25.17 (1) (kx) Public benefits and energy assistance fund (s. 25.96);

SB517, s. 7 Section 7. 25.96 of the statutes is created to read:

SB517,8,10 25.96 Public benefits and energy assistance fund. There is established a separate nonlapsible trust fund designated as the public benefits and energy assistance fund, consisting of the access fees received under s. 196.96 (4) (a) and (5) (c) and (d) and contributions received under s. 196.96 (2) (f) and (g).

SB517, s. 8 Section 8. 196.374 (1) of the statutes is amended to read:

SB517,8,19 196.374 (1) In this section, "utility" means a class A gas or electric utility, as defined by the commission. Every utility shall spend annually at least 0.5% of its total annual operating revenues the amount specified in s. 196.96 (4) (d) 1. on programs designed to promote and accomplish energy conservation. The commission may require a utility to spend annually, for the purpose of promoting and accomplishing energy conservation, an amount which is more or less than 0.5% of its annual operating revenues if, after notice and hearing, the commission finds that the expenditure of such amount is in the public interest.

SB517, s. 9 Section 9. 196.374 (4) of the statutes is created to read:

SB517,8,21 196.374 (4) This section does not apply after June 30, 2002.

SB517, s. 10 Section 10. 196.378 of the statutes is created to read:

SB517,8,23 196.378 Renewable resources. (1) Definitions. In this section:

SB517,9,2 (a) "Biomass" means a resource that generates energy from wood or plant material or residue, biological waste, crops grown for use as a resource or landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or industrial, commercial or household waste.

SB517,9,4 (b) "Capacity" means the amount of electricity that an electric or gas provider is capable of delivering to its customers or members at a specified time.

SB517,9,6 (c) "Conventional resource" means a resource that generates energy from coal, oil, nuclear power or natural gas, except for natural gas used in a fuel cell.

SB517,9,8 (d) "Electric or gas provider" means an electric or gas utility or retail cooperative.

SB517,9,10 (e) "Electric or gas utility" means a public utility that generates, transmits, delivers or furnishes electricity or gas.

SB517,9,12 (f) "Municipal utility" means an electric or gas utility that is owned or operated wholly by a municipality.

SB517,9,13 (g) "Renewable resource" means any of the following:

SB517,9,14 1. A resource that generates energy from any of the following:

SB517,9,15 a. A fuel cell that uses, as determined by the commission, a renewable fuel.

SB517,9,16 b. Tidal action.

SB517,9,17 c. Solar photovoltaic energy.

SB517,9,18 d. Wind power.

SB517,9,19 e. Geothermal technology.

SB517,9,20 f. Hydroelectric power.

SB517,9,21 g. Biomass.

SB517,9,23 2. Any other resource, except a conventional resource, that the commission designates as a renewable resource in rules promulgated under sub. (4).

SB517,10,3 (h) "Renewable resource credit" means a percentage by which an electric or gas provider's renewable resource percentage exceeds a percentage of the electric or gas provider's system peak load share specified in sub. (2) (a) 1. to 6.

SB517,10,5 (i) "Renewable resource percentage" means the percentage of an electric or gas provider's capacity that is generated from renewable resources.

SB517,10,6 (j) "Resource" means a source of electric power generation.

SB517,10,8 (k) "Retail cooperative" means a cooperative association organized under ch. 185 for the purpose of providing electricity or gas at retail to its members only.

SB517,10,11 (L) "System peak load" means the maximum amount of electricity that was delivered to all customers or members of all electric or gas providers at any one time during the period from May 1, 1996, to September 15, 1996.

SB517,10,15 (m) "System peak load share" means the amount of electricity that was delivered to all customers or members of an electric or gas provider by the electric or gas provider at the time that the system peak load was delivered to all customers or members of all electric or gas providers.

SB517,10,18 (2) Renewable resource percentages. (a) The renewable resource percentage of an electric or gas provider, as calculated under par. (b), shall be at least the following percentages of the electric or gas provider's system peak load share:

SB517,10,19 1. By December 31, 2000, 1%.

SB517,10,20 2. By December 31, 2002, 1.5%.

SB517,10,21 3. By December 31, 2004, 2%.

SB517,10,22 4. By December 31, 2006, 2.5%.

SB517,10,23 5. By December 31, 2008, 3%.

SB517,10,24 6. By December 31, 2010, 4%.

SB517,11,2 (b) In calculating an electric or gas provider's renewable resource percentage under par. (a), each of the following applies:

SB517,11,6 1. Any amount of capacity that is generated from hydroelectric power and that is more than 1% of the electric or gas provider's system peak load share may not be counted as part of the provider's capacity that is generated from renewable resources.

SB517,11,10 1g. An electric or gas provider may not count as part of the provider's capacity that is generated from renewable resources any capacity that the electric provider is required, as determined by the commission, to generate from renewable resources under the law of another state.

SB517,11,13 1r. An electric or gas provider may count as part of the provider's capacity that is generated from renewable resources only that capacity which is installed and rated on the basis of periodic tests.

SB517,11,16 2. The amount of any renewable resource credit purchased by the electric or gas provider under sub. (3) may be counted as part of the provider's capacity that is generated from renewable resources.

SB517,11,20 3. For a municipal utility or retail cooperative, the amount of any capacity that the municipal utility or retail cooperative purchases at wholesale and that is generated from renewable resources may be counted as part of the provider's capacity that is generated from renewable resources.

SB517,12,2 (3) Renewable resource credits. An electric or gas provider that has a renewable resource percentage that is more than the percentage of the electric or gas provider's system peak load share specified in sub. (2) (a) 1. to 6. for the applicable year may sell to any other electric or gas provider a renewable resource credit or a portion of a renewable resource credit. The commission may promulgate rules that establish requirements and procedures for a sale under this subsection.

SB517,12,5 (4) Rules. The commission may promulgate rules that designate a resource, except for a conventional resource, as a renewable resource in addition to the resources specified in sub. (1) (g) 1.

SB517,12,10 (5) Penalty. Any person who violates sub. (2) (a) shall forfeit no less than $10,000 nor more than $500,000. Forfeitures under this subsection shall be enforced by action on behalf of the state by the attorney general. A court imposing a forfeiture under this subsection shall consider all of the following in determining the amount of the forfeiture:

SB517,12,12 (a) The appropriateness of the forfeiture to the volume of business of the electric or gas provider.

SB517,12,13 (b) The gravity of the violation.

SB517, s. 11 Section 11. 196.96 of the statutes is created to read:

SB517,12,16 196.96 Public benefits and energy assistance. (1) Definitions. In this section:

SB517,12,18 (a) "Board" means the public benefits and energy assistance board created in s. 15.792 (1) (b).

SB517,12,19 (b) "Capacity" has the meaning given in s. 196.378 (1) (b).

SB517,12,22 (c) "Community assistance program" means a program to provide assistance to, or to promote the welfare of, a community that includes the customers or members of a municipal utility or retail cooperative.

SB517,12,25 (cm) "Commitment to community program" means a program for low-income assistance or a community assistance, energy conservation or load management program.

SB517,13,2 (d) "Division of housing" means the division of housing in the department of administration.

SB517,13,4 (e) "Electric provider" means an electric utility, retail cooperative or wholesale cooperative.

SB517,13,6 (f) "Electric utility" means a public utility that generates, transmits, delivers or furnishes electricity.

SB517,13,8 (g) "Energy conservation program" means a program for reducing the demand for electricity during any period.

SB517,13,9 (h) "Fiscal year" has the meaning given in s. 655.001 (6).

SB517,13,11 (i) "Load management program" means a program for reducing the demand for electricity during an electric provider's period of maximum demand.

SB517,13,14 (j) "Local unit of government" means the governing body of any county, city, town, village or county utility district or the elected tribal governing body of a federally recognized American Indian tribe or band.

SB517,13,16 (k) "Low-income assistance" means assistance to low-income households for weatherization and energy conservation services or payment of energy bills.

SB517,13,21 (L) "Low-income household" means any individual or group of individuals in this state who are living together as one economic unit and for whom residential electricity is customarily purchased in common or who make undesignated payments for electricity in the form of rent, and whose household income is not more than 150% of the poverty line as determined under 42 USC 9902 (2).

SB517,13,25 (m) "Low-income need" means the amount obtained by subtracting from the total low-income electricity bills in a fiscal year the product of 2.2% of the average annual income of low-income households in this state in that fiscal year multiplied by the number of low-income households in this state in that fiscal year.

SB517,14,2 (n) "Low-income need percentage" means the percentage that results from dividing $105,000,000 by the amount of low-income need in a fiscal year.

SB517,14,4 (o) "Low-income need target" means the product of the low-income need percentage in a fiscal year multiplied by low-income need in that fiscal year.

SB517,14,6 (p) "Municipal utility" means an electric utility that is owned or operated wholly by a municipality.

SB517,14,7 (q) "Renewable resource" has the meaning given in s. 196.378 (1) (g).

SB517,14,9 (r) "Retail cooperative" means a cooperative association organized under ch. 185 for the purpose of providing electricity at retail to its members only.

SB517,14,12 (s) "Total low-income electricity bills" means the total amount that all low-income households are billed for residential electricity by electric providers in a fiscal year.

SB517,14,14 (t) "Wholesale cooperative" means a cooperative association organized under ch. 185 for the purpose of providing electricity at wholesale to its members only.

SB517,14,17 (tm) "Wholesale percentage of capacity" means the percentage of a municipal utility's or retail cooperative's capacity in a fiscal year that is supplied by a wholesale supplier.

SB517,14,19 (u) "Wholesale supplier" means a wholesale supplier of electricity, including a wholesale cooperative, to a municipal utility or retail cooperative.

SB517,14,20 (2) Board duties. The board shall do all of the following:

SB517,15,3 (a) After holding a hearing, establish programs to be administered by the department of administration through the division of housing for awarding grants from the appropriation under s. 20.155 (1m) (r) to provide low-income assistance. A hearing under this paragraph may not be a hearing under s. 227.42 or 227.44. In each fiscal year, no less than the amount obtained from subtracting from $50,000,000 the sum of all moneys received under 42 USC 6861 to 6873 in a fiscal year shall be awarded under this paragraph in grants for low-income assistance other than payment of energy bills.

SB517,15,6 (b) Subject to par. (d), after holding a hearing that is not a hearing under s. 227.42 or 227.44, establish and administer programs for awarding grants from the appropriation under s. 20.155 (1m) (r) for each of the following:

SB517,15,14 1. Proposals for providing energy conservation or efficiency services. In awarding grants under this subdivision, the board shall give priority to proposals directed at the sectors of energy conservation or efficiency markets that are least competitive and at promoting environmental protection or rural economic development. In each fiscal year, no less than 1.75% of the amount obtained by subtracting from the appropriation under s. 20.155 (1m) (r) the amount awarded under par. (a) shall be awarded in grants for research and development proposals regarding the environmental impacts of the electric industry.

SB517,15,21 2. Proposals for encouraging the development or use of customer applications of renewable resources, including educating customers about renewable resources or encouraging uses of renewable resources by customers or encouraging research technology transfers. In each fiscal year, the board shall ensure that no less than 4.5% of the amount obtained by subtracting from the appropriation under s. 20.155 (1m) (r) the amount awarded under par. (a) shall be awarded in grants under this subdivision.

SB517,15,23 (bm) The board may award grants under par. (b) only for proposals that are consistent with strategic planning decisions of the commission.

SB517,15,25 (c) For each fiscal year after 1998-99, determine the low-income need target for that fiscal year.

SB517,16,5 (d) For each fiscal year after 2000-01, determine whether to continue, discontinue or reduce any of the programs established under par. (b) and determine the total amount necessary to fund the programs that the board determines to continue or reduce under under this paragraph. An amount determined under this paragraph may not be more than $112,000,000.

SB517,16,6 (e) Promulgate rules establishing all of the following:

SB517,16,11 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 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).

SB517,16,13 2. Requirements and procedures for applications for grants awarded under programs established under par. (a) or (b).

SB517,16,18 3. Requirements and procedures that allow an interested person, including a member of the public, to intervene in a hearing under par. (a) or (b) (intro.) and allow the board to award compensation from the appropriation under s. 20.155 (1m) (s) to a person that is not an electric provider for some or all of the reasonable costs of intervening in a hearing if the board finds any of the following:

SB517,16,21 a. That the intervention is necessary to provide an adequate presentation of a significant position in which the person has a substantial interest and that an adequate presentation would not be possible without compensation.

SB517,16,24 b. That the intervention has provided a significant contribution to the establishment of a program and has caused a significant financial hardship to the person.

SB517,17,3 (f) Encourage voluntary contributions to assist in funding the programs established under pars. (a) and (b). The board shall deposit all contributions received under this paragraph in the public benefits and energy assistance fund.