Joint Finance/Legislature: Modify the Governor's recommendation by including a provision to direct the Division of Housing to ensure that transitional housing grant funds be reasonably balanced among geographic areas of the state, consistent with the quality of applications submitted.
[Act 9 Section: 64]
10. HOUSING -- TRANSFER MOBILE HOME REGULATORY PROGRAMS TO COMMERCE
Funding Positions
PR-REV - $160,000
PR - $142,300 - 3.00
Joint Finance/Legislature: Delete $142,300 and 3.0 positions in 2000-01 from the mobile home park regulatory appropriation. Effective July 1, 2000, transfer 3.0 PR positions in the Division of Housing that are currently responsible for the regulation of mobile home parks and mobile home dealers to the Department of Commerce. Provide that the DOA incumbents would be transferred to Commerce with any rights and benefits previously earned. Repeal the program revenue mobile home appropriation, effective July 1, 2000, and transfer the unencumbered appropriation account balance to the safety and buildings operations program revenue appropriation under Commerce. The estimated reduction in DOA mobile home program revenue would be $160,000 annually, beginning in 2000-01. [See the entry under "Commerce" for a description of the Commerce provisions.]
[Act 9 Sections: 64g, 64m, 64r, 544m, 9101(3x), 9201(2x) and 9410(5x)]
11. TRANSFER OF COMPUTER-RELATED SUPPLIES AND SERVICES FUNDS TO THE OFFICE OF THE GOVERNOR [LFB Paper 466]
GPR - $250,000
Joint Finance/Legislature: Delete $125,000 annually from DOA's s. 20.505(1)(a) general program operations appropriation and increase the Office of the Governor's s. 20.525(1)(a) general program operations appropriation by an equal amount annually to reflect the transfer to that Office of base level funds currently budgeted under DOA for computer-related costs incurred by the Executive Office.
12. FREE BOOKS FOR ORGANIZATIONS [LFB Paper 138]
GPR - $200,000
Joint Finance/Legislature: Repeal the free books for organizations program and delete funding of $100,000 GPR annually.
[Act 9 Sections: 11d, 11n, 51m, 511d, 516m, 517m and 3261g]
13. PAYMENT OF REMAINING WISCONSIN SESQUICENTENNIAL COMMISSION EXPENSES
Assembly/Legislature: Create a SEG-funded continuing appropriation under DOA to be funded from residual Wisconsin Sesquicentennial Commission monies from gifts, donations and royalties that have been transferred to the historical legacy trust fund since October 1, 1998. Provide that the appropriation would be used for the payment of any Commission obligations that remain unpaid as of the effective date of the biennial budget act. Include a nonstatutory provision authorizing the Secretary of DOA to make appropriate adjustments to the amounts required to be transferred under current law from residual Commission balances to the transportation fund, if the Commission received more than a total of $4,150,000 from license plate revenues. This provision would result in the transfer of an additional $83,300 from the historical legacy trust fund to the transportation fund in 1999-00. [Under current law, the amounts received in excess of $4,150,000 must be returned to the transportation fund from the historical legacy trust fund.] It is estimated that unpaid Commission obligations (primarily unpaid grant awards) will total at least $393,000.
[Act 9 Sections: 11p, 528p and 9101(21g)]
14. UTILITY PUBLIC BENEFITS PROGRAM AND ADMINI-STRATION
SEG-REV $55,500,000
SEG $55,500,000
Senate: Direct DOA, in consultation with a new Council on Public Benefits, to establish low-income energy assistance and energy conservation and efficiency services public benefit programs.
Public Benefits Program Elements
Low-Income Energy Assistance Programs. Create a program for awarding grants to be administered through DOA's Division of Housing to provide assistance to low-income households for weatherization and other energy conservation services, payment of energy bills and the early identification and prevention of energy crises. Specify that in each fiscal year, the amount awarded under the program for weatherization and other energy conservation services would have to be sufficient to equal 47% of the sum of the federal low-income weatherization and energy conservation funds received by the state, all revenues spent by continuing low-income programs established by utilities, all funds expended under this new DOA program and 50% of the public benefits funds received from municipal utilities.
Energy Conservation and Efficiency and Renewable Resources Programs. Create a program to be administered by DOA for awarding grants for energy conservation and efficiency services and for renewable resources programs directed at: (a) the least competitive sectors of the energy conservation and efficiency services market; and (b) promoting environmental protection, electric system reliability or rural economic development. Specify that 4.5% of the funds for this program be expended for renewable resources and 1.75% of the funds be used for research and development proposals. Require DOA to establish requirements and grant application procedures for grants by rule.
Program Administration
DOA Administrative Responsibilities. Provide that DOA's Division of Housing would have to contract with: (a) community action agencies, nonprofit corporations or local units of government to provide the low–income program services; and (b) with one or more nonprofit corporation to administer the energy conservation and related programs. Require that DOA, beginning in the 2004-05 fiscal year, determine whether to continue, discontinue or reduce any of the programs related to energy conservation and efficiency and renewable resources. Provide that DOA would have to determine the amount of funding necessary for the programs that are continued or reduced and notify the PSC of this funding determination.
Other DOA Duties. Direct DOA to encourage utility customers to make voluntary contributions to support public benefit programs. Specify that DOA would have to conduct an annual independent audit of the public benefits programs for submission to the Legislature and Governor.
Emergency Rules. Specify that DOA would have to promulgate emergency rules for the public benefits programs within 60 days of the general effective date of the biennial budget act and that draft permanent rules would have to be submitted to the Legislative Council within six months of the general effective date of the biennial budget act.
Council on Public Benefits. Create an 11-member Council on Public Benefits, attached to DOA and require DOA to consult with the Council in the development of public benefits programs.
Revenue Sources for Public Benefits Programs
Continuation of Existing Utility Funding. Direct the PSC to determine the amount that each major investor-owned electric or gas utility spent on public benefit programs in calendar year 1998 and require them to continue to collect such amounts through rates. Specify that for calendar years 1999, 2000 and 2001 utilities would have to phase over such revenue amounts from their programs to the DOA public benefits programs so that by 2002 the utilities would contribute the entire amount to DOA.
New Fees -- Collected by Investor-Owned Utilities. Specify that new public benefits fees would be set by DOA, by rule. For each individual customer, provide that the new fees would be capped, through June 30, 2008, at a 3% increase in the customer's total bill or $750 per month, whichever is less.
For the low-income programs in 1999-00, provide that the fees must be sufficient to generate $27 million minus one-half of the amount raised by municipal utilities and cooperatives. In subsequent years, provide that the amount to be raised would have to be the low–income need target amount minus: (a) one-half of the amounts raised by municipal utilities and cooperatives; (b) all federal funds received for low–income programs; and (c) all funds collected by utilities at the 1998 level of public benefit program expenditures by the utilities.
For the energy conservation and efficiency services program in 1999-00, require that the fees be sufficient to generate $20 million minus one-half of the amounts raised by municipal utilities and cooperatives. After 1999-00, require that the portion of fees for this program be the same as determined for 1999-00, except DOA would be required to reduce the required funding level of the energy conservation public benefit programs if DOA determines to reduce the required funding level for such programs beginning in 2004-05.
New Fees -- Collected by Municipal Utilities and Cooperatives. Provide that municipal utilities and cooperatives would have to collect fees from their customers that average $17 per electric meter per year. Specify that if such utilities did not choose to use the fees collected to support local "commitment to community" public benefits programs, the amounts collected would have to be remitted to DOA.
Federal Revenues. Provide that the amount of federal revenues received by the state for the existing federal funding amounts under the low-income weatherization assistance program and the low-income home energy assistance program would be included as part of the formula used to set the public benefit fees.
Public Benefits Fund and Appropriations Structure
Establish a segregated utility public benefits fund as a separate nonlapsible trust fund. Provide that investor-owned utility public benefits fees, municipal utility and cooperatives public full or partial benefits fees payments to DOA and voluntary contributions from utility customers would be deposited to this fund.
Create a SEG-funded annual appropriation under DOA, funded from the utility public benefits fund, to support the general program operations of DOA's public benefits function. No funding or position authority would be provided in this appropriation. Create two additional SEG-funded sum sufficient appropriations, funded from the utility public benefits fund, to support, respectively, low-income assistance grants and energy conservation and efficiency and renewable resource grants.
Conference Committee/Legislature: Include the Senate provision with the following changes:
Public Benefits Program Elements
Low-Income Energy Assistance Programs. Clarify the formula to determine the annual amount of awards under the proposed new low-income energy assistance program. Direct DOA to develop a mechanism for phasing in this formula during the 1999-00 and 2000-01 fiscal years and direct that the grants awarded during these fiscal years be made in accordance with this phase-in mechanism.
Program Administration
DOA Administrative Responsibilities. Clarify the manner by which DOA may reduce the amounts required for the energy conservation and efficiency and renewable resources program, commencing with the 2004-05 fiscal year. Specify that if DOA reduces the amounts for energy conservation and efficiency and renewable resources program awards by an amount greater that the public benefits fees collected from all utilities ($20 million annually), DOA must report to the PSC the amount by which the reduction exceeds the amount of public benefit fees collected. The PSC would be required to reduce the amount of public benefit fees that utilities are required to contribute for such programs by the amount of the difference.
Other DOA Duties. Specify that DOA and the Council on Utility Public Benefits could also specify topics to be addressed in the annual independent audits of the public benefits programs.
Emergency Rules. Specify that DOA would not be required to consult with the Council on Utility Public Benefits in promulgating rules for the public benefits programs. Specify that DOA would not have to make a finding of an emergency in order to promulgate emergency rules relating to public benefits programs during the period before the promulgation of permanent rules.
Revenue Sources for Public Benefits Programs
Continuation of Existing Utility Funding. Require the PSC to direct the phase-over of utility-funded public benefits programs to the new DOA public benefits programs during calendar years 2000, 2001 and 2002, rather that during 1999, 2000 and 2001.
New Fees -- Collected by Investor-Owned Utilities. Specify that for low-income programs, the initial fees collected in 1999-00 would be set at $24,000,000, rather than $27,000,000. Specify further, that the amounts collected for low-income programs ($24,000,000, less one-half of the amounts collected from municipal utilities) and for energy conservation and efficiency programs ($20,000,000, less one-half of the amounts collected from municipal utilities) would be reduced in proportion to the amount of time that has elapsed in 1999-00 before DOA has promulgated emergency rules setting the amount of fees that must be collected from the various utilities. Specify further that the amount of the "low-income need target" used to develop fee collection requirements for low-income programs in future fiscal years would be treated as if the full annual amounts for low-income programs had been collected.
New Fees -- Collected by Municipal Utilities and Cooperatives. Provide that municipal utilities and cooperatives would have to collect fees from their customers that average $16 per electric meter per year rather than $17 per meter. It is estimated that $7 million annually would be collected under this provision.
State Fiscal Effect. DOA would have to set public benefits fees such that: (a) for low-income program in 1999-00, $24 million would have to be collected (less one-half of any amounts raised by municipal utilities and cooperatives); and (b) for the energy conservation and efficiency services program in 1999-00, $20 million would have to be collected (less one-half of any amounts raised by municipal utilities and cooperatives). Municipal utility and cooperative fee collections are estimated under the revised $16 per electric meter per year provision to total $7 million for all public benefits programs. Thus, in 1999-00 investor-owned utilities would be required to contribute a minimum of $20.5 million to the utility public benefits fund for low-income programs and a minimum of $16.5 million to the utility public benefits fund for energy conservation. However, the proposal would also require that the 1999-00 amounts be prorated to reflect the amount of time that elapses until DOA promulgates emergency rules governing the amount of fees to be collected in 1999-00. Assuming that such rules would be in place by January 1, 2000, total investor-owned utility collections for public benefits would be estimated to be $18.5 million for the balance of the 1999-00 fiscal year.
Contribution rates for the 2000-01 fiscal year would have to be determined by DOA during the 1999-00 fiscal year. However, if it is assumed that they would be comparable to those set by this proposal for the 1999-00 fiscal year, additional contributions of $37 million from investor-owned public utilities in 2000-01 could be expected, representing a total of $74 million of fee revenues for the 1999-01 biennium.
15. AIR QUALITY IMPROVEMENT PROGRAM
The amounts credited to the utility public benefits fund would actually be expended through the new sum sufficient appropriations to fund low-income assistance grants and energy conservation and efficiency grants. All revenues credited to the public benefits trust fund could be expended through the new sum sufficient appropriations for low-income assistance grants and energy conservation and efficiency and renewable resource grants. It is estimated that grant expenditures would amount to $18.5 million SEG in 1999-00 and $37.0 million SEG in 2000-01; however, the final expenditure amounts would be determined by the number and amount of grant applications actually received by DOA
[For a more complete description of utility public benefits programs as part of modifications to electric utility regulation ("Reliability 2000 Initiative"), see the description under "PSC -- Regulation of Electric Utilities: Reliability 2000 Initiative."]
Veto by Governor [F-1]: DOA Administrative Responsibilities. Delete the specific requirement that the low-income energy assistance public benefits program be established and administered "through the Division of Housing." Modify the definition of Division of Housing as used in connection with the utility public benefits program, so that the term "Division of Housing" means the Department of Administration. The effect of these partial vetoes is to eliminate any requirements that a specific administrative unit within DOA be responsible for the implementation of utility public benefits programs. As a result, the Secretary of DOA could determine how he or she wishes the Department to administer these programs.
Emergency Rules. Delete the requirement that the emergency rules regarding the collection of public benefits fees by utilities be promulgated no later than 60 days after the effective date of the biennial budget act.
[Act 9 Sections: 28at, 109m, 587b, 699m, 718b, 2334p and 9101(1zt), (1zu), (1zv) & (1zw)]
[Act 9 Vetoed Sections: 109m and 9101(1zu)]
Conference Committee/Legislature: Create a DOA air quality improvement program that provides grants to operators of electric power plants in western Wisconsin to support reductions of nitrogen oxide emissions that are necessary to comply with federal standards. Provide that the new grant program is only implemented if the DNR notifies DOA that it has issued a state implementation plan, in response to federal requirements, that require electric power plants in western Wisconsin to comply with nitrogen oxide emission reduction requirements. Create in DOA a segregated, sum sufficient appropriation for the program and a new segregated fund for air quality improvement.
Require DOA, upon notification by DNR, to transfer up to $2,500,00 annually to the air quality improvement fund from the appropriation for energy conservation and efficiency and renewable resource grants under the newly-created public benefits programs. In addition, require the PSC to collect up to $2,400,000 annually from assessments of electric public utility affiliates to also be deposited in the fund. Funding from both sources could be decreased in accordance with the notice from the DNR that lesser amounts are needed. Provide that both sources of funding are authorized for up to 10 years.
Direct DOA to provide grants of up to $4.9 million annually from the air quality improvement fund to generator public utilities or generator electric cooperatives that provide service in the western part of the state. Require DOA to promulgate rules for the program that include an identification of the reduction in nitrogen oxide emissions that will be achieved. Limit the maximum grant for any eligible public utility to $500,000 annually. Authorize grant recipients to assign the grant to third parties if the grant recipient demonstrates to the satisfaction of DOA that an equivalent amount of nitrogen oxide emissions is achievable by the third party.
[For a more complete description of the new air quality improvement provisions, see the description under "PSC - Regulation of Electric Utilities: Reliability 2000 Initiative."]
[Act 9 Sections: 109no, 587d, 695g, 718d, 2336mt and 2554j]
