2005 - 2006 LEGISLATURE
February 22, 2006 - Printed by direction of Assembly Chief Clerk.
SB459-engrossed,2,17 1An Act to repeal 16.957 (1) (d), (e) and (h), 16.957 (1) (r), 16.957 (2) (b), 16.957
2(2) (c) 2m., 2n. and 4., 16.957 (2) (d) 2., 16.957 (2) (d) 4. c., 16.957 (3) (b) and (c),
316.957 (4) (c) 2., 16.957 (5) (c) and (d), 16.957 (5) (e) 2., 101.027 (1) (b), 196.378
4(1) (bm), 196.378 (1) (e), 196.378 (1) (f), 196.378 (1) (n) and 196.378 (2) (b) 3.; to
5renumber
16.957 (3) (a); to renumber and amend 196.025 (1), 196.378 (1) (a)
6and 196.378 (3) (a); to consolidate, renumber and amend 16.957 (5) (e)
7(intro.) and 1. and 101.027 (1) (intro.) and (a); to amend 16.75 (1) (a) 1., 16.957
8(1) (c), 16.957 (1) (o) 1m., 16.957 (1) (o) 2., 16.957 (1) (o) 3., 16.957 (2) (a) 2.,
916.957 (2) (a) 4., 16.957 (2) (c) 1., 16.957 (2) (c) 2., 16.957 (2) (d) 1., 16.957 (2) (d)
103., 16.957 (2) (d) 4. a., 16.957 (4) (a), 16.957 (4) (am), 16.957 (4) (b) (intro.), 16.957
11(4) (c) (title), 16.957 (4) (c) 1. (intro.), 16.957 (4) (c) 1. a., 16.957 (4) (c) 1. c., 16.957
12(4) (c) 3., 16.957 (5) (a), 16.957 (5) (am), 16.957 (5) (f), 16.957 (5) (g) 1. (intro.),
1316.957 (5) (g) 1. a., 16.957 (5) (g) 1. b., 16.957 (5) (g) 2., 20.505 (3) (s), 25.96, 76.28
14(1) (d), 76.48 (1g) (d), 77.54 (44), 79.005 (4) (d), 101.027 (2), 101.027 (3) (a) 1.,

1101.027 (3) (a) 2., 101.027 (3) (b) 1., 101.027 (3) (b) 2., 196.378 (1) (g), 196.378
2(1) (i), 196.378 (2) (b) 1., 196.378 (2) (c), 196.378 (3) (b), 196.378 (5) (intro.),
3285.48 (4) (a) and 285.48 (4) (b); to repeal and recreate 16.957 (title), 16.957
4(1) (x), 16.957 (5) (b), 196.374, 196.378 (1) (o), 196.378 (2) (a), 196.378 (2) (b) 4.
5and 196.378 (2) (e); and to create 16.75 (10e), 16.75 (12), 16.855 (10s), 16.897,
616.953, 20.924 (1) (j), 196.025 (1) (title), 196.025 (1) (ag), 196.025 (1) (b) to (d),
7196.025 (1m) (title), 196.025 (2) (title), 196.025 (2m) (title), 196.025 (3) (title),
8196.025 (4) (title), 196.025 (5) (title), 196.378 (1) (ag), 196.378 (1) (fg), 196.378
9(1) (fm), 196.378 (1) (fr), 196.378 (1) (p), 196.378 (2) (b) 1m., 196.378 (2) (b) 5.,
10196.378 (2) (f), 196.378 (2) (g), 196.378 (3) (a) 2., 196.378 (3) (c), 196.378 (4m)
11and 196.378 (4r) of the statutes; relating to: administration and funding of
12programs for utility public benefits; renewable energy requirements for
13utilities and retail electric cooperatives; energy efficiency requirements for
14state construction and certain purchases; revising and reviewing the state
15energy conservation code; state use of renewable energy resources; anaerobic
16digestor research; corn-burning furnace pilot program; granting rule-making
17authority; and making an appropriation.
Analysis by the Legislative Reference Bureau
Engrossment information:
The text of Engrossed 2005 Senate Bill 459, as passed by the senate on
February 21, 2006, consists of the following documents adopted in the senate on
February 21, 2006: the bill as affected by Senate Substitute Amendment 1 (as
affected by Senate Amendment 1 thereto). The text also includes the February 21,

2006, chief clerk's correction to Senate Amendment 1 to Senate Substitute
Amendment 1.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB459-engrossed, s. 1e 1Section 1e. 16.75 (1) (a) 1. of the statutes, as affected by 2005 Wisconsin Act
225
, is amended to read:
SB459-engrossed,3,113 16.75 (1) (a) 1. All orders awarded or contracts made by the department for all
4materials, supplies, equipment, and contractual services to be provided to any
5agency, except as otherwise provided in par. (c) and subs. (2), (2g), (2m), (3m), (3t),
6(6), (7), (8), (9), (10e), and (10m) and ss. 16.73 (4) (a), 16.751, 16.754, 50.05 (7) (f),
7153.05 (2m) (a), 287.15 (7), and 301.265, shall be awarded to the lowest responsible
8bidder, taking into consideration life cycle cost estimates under sub. (1m), when
9appropriate, the location of the agency, the quantities of the articles to be supplied,
10their conformity with the specifications, and the purposes for which they are
11required and the date of delivery.
SB459-engrossed, s. 1m 12Section 1m. 16.75 (10e) of the statutes is created to read:
SB459-engrossed,3,1513 16.75 (10e) (a) In this subsection, "energy consuming equipment" means any
14equipment that is designed for heating, ventilation, air conditioning, water heating
15or cooling, lighting, refrigeration, or any other function, and that consumes energy.
SB459-engrossed,4,1116 (b) The department, any other designated purchasing agent under s. 16.71 (1),
17any agency making purchases under s. 16.74, and any authority may not purchase
18energy consuming equipment unless the specifications for the equipment meet the
19applicable standards for the equipment established under s. 16.855 (10s) (a). If there
20is no standard under s. 16.855 (10s) (a) applicable to the type of energy consuming
21equipment being purchased, or if the energy consuming equipment meeting that

1standard is not reasonably available, the department, purchasing agent, agency, or
2authority shall ensure that the energy consuming equipment that is purchased
3maximizes energy efficiency to the extent technically and economically feasible. The
4department, purchasing agent, agency, or authority shall not determine that energy
5consuming equipment that meets the applicable standard under s. 16.855 (10s) (a)
6either is not reasonably available on the basis of cost alone or is not cost-effective
7unless the difference in the cost of the purchase and installation of the equipment
8that meets the standard and the equipment that would otherwise be installed is
9greater than the difference in the cost of operating the equipment that meets the
10standard and the equipment that would otherwise be installed over the anticipated
11life of the equipment.
SB459-engrossed, s. 1s 12Section 1s. 16.75 (12) of the statutes is created to read:
SB459-engrossed,4,1313 16.75 (12) (a) In this subsection:
SB459-engrossed,4,1714 1. "Agency" means the department of administration, the department of
15corrections, the department of health and family services, the department of public
16instruction, the department of veterans affairs, and the Board of Regents of the
17University of Wisconsin System.
SB459-engrossed,4,1918 2. "Agency facility" means any state-owned or leased facility that is occupied,
19operated, or used by an agency.
SB459-engrossed,4,2120 3. "Renewable percentage" means the percentage of total annual electric
21energy that is derived from renewable resources.
SB459-engrossed,4,2422 4. "Renewable resource" has the meaning given in s. 196.378 (1) (h) 1. or 2. and
23includes a resource, as defined in s. 196.378 (1) (j), that derives electricity from
24hydroelectric power.
SB459-engrossed,5,3
15. "Total annual electric energy" means the total annual amount of electric
2energy generated or purchased by the state for power, heating, or cooling purposes
3for all agency facilities.
SB459-engrossed,5,54 (b) The department shall establish goals for each agency that are designed to
5accomplish the following goals:
SB459-engrossed,5,76 1. That the renewable percentage for total annual electric energy by December
731, 2007, is at least 10 percent.
SB459-engrossed,5,98 2. That the renewable percentage for total annual electric energy by December
931, 2011, is at least 20 percent.
SB459-engrossed,5,1110 (c) In determining whether the goals under par. (b) are accomplished, the
11department shall do all the following:
SB459-engrossed,5,1312 1. Calculate total annual electric energy on the basis of an average of the total
13annual electric energy during the 3 years prior to the specified dates.
SB459-engrossed,5,1714 2. For any individual agency facility, consider only electric energy that is
15purchased from the electric provider that serves the agency facility under an
16arrangement with a term of 10 years or more and electric energy derived from
17renewable resources owned by the state and produced for use in the agency facility.
SB459-engrossed,5,2018 (d) Notwithstanding par. (b), an agency is not required to generate or purchase
19electric energy derived from renewable resources if the generation or purchase is not
20technically feasible or cost-effective.
SB459-engrossed,5,2521 (e) No later than March 1 of each year, the department shall submit a report
22to the governor and chief clerk of each house of the legislature, for distribution to the
23legislature under s. 13.172 (2), concerning the degree of attainment and, if
24applicable, reasons for nonattainment by the state during the preceding year in
25meeting the goals established by the department under par. (b).
SB459-engrossed, s. 2
1Section 2. 16.855 (10s) of the statutes is created to read:
SB459-engrossed,6,112 16.855 (10s) (a) The department shall, by rule, prescribe and annually review
3and revise as necessary energy efficiency standards for equipment that is installed
4as a component of a construction project and that relates to heating, ventilation, air
5conditioning, water heating or cooling, lighting, refrigeration, or any other function
6that consumes energy. The standards shall meet or exceed current applicable
7guidelines of the federal environmental protection agency relating to energy
8efficiency of the functions specified in this paragraph, guidelines that apply to the
9federal energy management program under 42 USC 8251 et seq., and standards
10established by the American society of heating, refrigerating and air-conditioning
11engineers.
SB459-engrossed,7,312 (b) The department shall ensure that the specifications for any equipment that
13is designed for heating, ventilation, air conditioning, water heating or cooling,
14lighting, refrigeration, or any other function that consumes energy under any
15construction project contract administered by the department meet applicable
16standards established under par. (a). If there is no standard under par. (a) applicable
17to the type of equipment being purchased or if the equipment meeting that standard
18is not reasonably available, the department shall ensure that energy consumption
19within a building, structure, or facility and all equipment that is purchased under
20each contract administered by the department maximizes energy efficiency to the
21extent technically and economically feasible. The department shall not determine
22that equipment that meets the applicable standard under par. (a) either is not
23reasonably available on the basis of cost alone or is not cost-effective unless the
24difference in the cost of the purchase and installation of the equipment that meets
25the standard and the equipment that would otherwise be installed is greater than

1the difference in the cost of operating the equipment that meets the standard and the
2equipment that would otherwise be installed over the anticipated life of the
3equipment.
SB459-engrossed, s. 3 4Section 3. 16.897 of the statutes is created to read:
SB459-engrossed,7,8 516.897 Space and water heating systems. In planning and designing space
6or water heating systems for new or existing state facilities, the department shall
7ensure that geothermal technologies are utilized to the greatest extent that is
8cost-effective and technically feasible.
SB459-engrossed, s. 4 9Section 4. 16.953 of the statutes is created to read:
SB459-engrossed,7,20 1016.953 Energy cost reduction plans. No later than July 1 of each
11even-numbered year, each agency, as defined in s. 16.75 (12) (a) 1., shall submit a
12plan to the department, the joint committee on finance, and the standing committee
13of each house of the legislature having jurisdiction over energy, for reduction of the
14cost of energy used by the agency. The plan shall include all system and equipment
15upgrades or installations that are estimated to result in energy cost savings equal
16to the cost of the upgrade or installation over the anticipated life of the system or
17equipment. The plan shall also identify potential means of financing the upgrades
18and installations other than reliance on appropriations of general purpose revenues.
19The department of administration shall consider in its plan the means of financing
20allowed under s. 16.858.
SB459-engrossed, s. 5 21Section 5. 16.957 (title) of the statutes is repealed and recreated to read:
SB459-engrossed,7,22 2216.957 (title) Low-income assistance.
SB459-engrossed, s. 6 23Section 6. 16.957 (1) (c) of the statutes is amended to read:
SB459-engrossed,8,224 16.957 (1) (c) "Commitment to community program" means a program by or on
25behalf of
a municipal utility or retail electric cooperative for low-income assistance

1or an energy conservation program by a municipal utility or retail electric
2cooperative
.
SB459-engrossed, s. 7 3Section 7. 16.957 (1) (d), (e) and (h) of the statutes are repealed.
SB459-engrossed, s. 8 4Section 8. 16.957 (1) (o) 1m. of the statutes is amended to read:
SB459-engrossed,8,85 16.957 (1) (o) 1m. The amount of the portion of the public benefits fee for fiscal
6year 1999-2000 that is specified in sub. s. 16.957 (4) (c) 1. The amount specified in
7this subdivision shall not be subject to the reduction under 1999 Wisconsin Act 9,
8section 9101 (1zr) (a)
, 1999 stats.
SB459-engrossed, s. 9 9Section 9. 16.957 (1) (o) 2. of the statutes is amended to read:
SB459-engrossed,8,1110 16.957 (1) (o) 2. The total amount expended by utilities under s. 196.374, 2003
11stats.,
related to low-income assistance.
SB459-engrossed, s. 10 12Section 10. 16.957 (1) (o) 3. of the statutes is amended to read:
SB459-engrossed,8,1713 16.957 (1) (o) 3. Fifty percent of the amount of public benefits fees that
14municipal utilities and retail electric cooperatives are were required to charge under
15sub. s. 16.957 (5) (a), 1999 stats., in fiscal year 1999-2000. The amount specified in
16this subdivision shall not be subject to the reduction under 1999 Wisconsin Act 9,
17section 9101 (1zv) (c).
SB459-engrossed, s. 11 18Section 11. 16.957 (1) (r) of the statutes is repealed.
SB459-engrossed, s. 12 19Section 12. 16.957 (1) (x) of the statutes is repealed and recreated to read:
SB459-engrossed,8,2220 16.957 (1) (x) "Wholesale supply percentage" means the percentage of the
21electricity sold by a wholesale supplier that is purchased by a municipal utility or
22retail electric cooperative.
SB459-engrossed, s. 13 23Section 13. 16.957 (2) (a) 2. of the statutes is amended to read:
SB459-engrossed,8,2524 16.957 (2) (a) 2. All moneys spent in a fiscal year for low-income programs
25established under s. 196.374, 2003 stats.
SB459-engrossed, s. 14
1Section 14. 16.957 (2) (a) 4. of the statutes is amended to read:
SB459-engrossed,9,32 16.957 (2) (a) 4. Fifty percent of the The moneys collected in public benefits
3low-income assistance fees under sub. (5) (a).
SB459-engrossed, s. 15 4Section 15. 16.957 (2) (b) of the statutes is repealed.
SB459-engrossed, s. 16 5Section 16. 16.957 (2) (c) 1. of the statutes is amended to read:
SB459-engrossed,9,106 16.957 (2) (c) 1. Eligibility requirements for low-income assistance under
7programs established under par. (a). The rules shall prohibit a person who receives
8low-income assistance from a municipal utility or retail electric cooperative under
9a program specified in sub. (5) (d) 2. b. or 3. a. (b) 1. from receiving low-income
10assistance under programs established under par. (a).
SB459-engrossed, s. 17 11Section 17. 16.957 (2) (c) 2. of the statutes is amended to read:
SB459-engrossed,9,1312 16.957 (2) (c) 2. Requirements and procedures for applications for grants
13awarded under programs established under par. (a) or (b) 1.
SB459-engrossed, s. 18 14Section 18. 16.957 (2) (c) 2m., 2n. and 4. of the statutes are repealed.
SB459-engrossed, s. 19 15Section 19. 16.957 (2) (d) 1. of the statutes is amended to read:
SB459-engrossed,9,1716 16.957 (2) (d) 1. For each fiscal year after fiscal year 1998-99, determine the
17low-income need target for that fiscal year.
SB459-engrossed, s. 20 18Section 20. 16.957 (2) (d) 2. of the statutes is repealed.
SB459-engrossed, s. 21 19Section 21. 16.957 (2) (d) 3. of the statutes is amended to read:
SB459-engrossed,9,2120 16.957 (2) (d) 3. Deposit all moneys received under sub. (4) (a) or (5) (c) or (d)
21(b) 2. in the utility public benefits fund.
SB459-engrossed, s. 22 22Section 22. 16.957 (2) (d) 4. a. of the statutes is amended to read:
SB459-engrossed,9,2523 16.957 (2) (d) 4. a. The expenses of the department, other state agencies, and
24grant recipients in administering or participating in the programs under pars. par.
25(a) and (b).
SB459-engrossed, s. 23
1Section 23. 16.957 (2) (d) 4. c. of the statutes is repealed.
SB459-engrossed, s. 24 2Section 24. 16.957 (3) (a) of the statutes is renumbered 16.957 (3).
SB459-engrossed, s. 25 3Section 25. 16.957 (3) (b) and (c) of the statutes are repealed.
SB459-engrossed, s. 26 4Section 26. 16.957 (4) (a) of the statutes is amended to read:
SB459-engrossed,10,125 16.957 (4) (a) Requirement to charge public benefits low-income assistance fees.
6Each electric utility, except for a municipal utility, shall charge each customer a
7public benefits low-income assistance fee in an amount established in rules
8promulgated by the department under par. (b). An electric utility, except for a
9municipal utility, shall collect and pay the fees to the department in accordance with
10the rules promulgated under par. (b). The public benefits low-income assistance fees
11collected by an electric utility shall be considered trust funds of the department and
12not income of the electric utility.
SB459-engrossed, s. 27 13Section 27. 16.957 (4) (am) of the statutes is amended to read:
SB459-engrossed,10,1914 16.957 (4) (am) Electric bills. An electric utility shall include a public benefits
15show the low-income assistance fee in the fixed charges for electricity as a separate
16line
in a customer's bill, identified as the "state low-income assistance fee," and shall
17provide the customer with an annual statement that identifies the annual charges
18for public benefits low-income assistance fees and describes the programs for which
19fees are used.
SB459-engrossed, s. 28 20Section 28. 16.957 (4) (b) (intro.) of the statutes is amended to read:
SB459-engrossed,10,2521 16.957 (4) (b) Rules. (intro.) In consultation with the council, the department
22shall promulgate rules that establish the amount of a public benefits low-income
23assistance
fee under par. (a). Fees established in rules under this paragraph may
24vary by class of customer, but shall be uniform within each class, and shall satisfy
25each of the following:
SB459-engrossed, s. 29
1Section 29. 16.957 (4) (c) (title) of the statutes is amended to read:
SB459-engrossed,11,22 16.957 (4) (c) (title) Amount of public benefits low-income assistance fees.
SB459-engrossed, s. 30 3Section 30. 16.957 (4) (c) 1. (intro.) of the statutes is amended to read:
SB459-engrossed,11,114 16.957 (4) (c) 1. `Low-income funding from fee.' (intro.) In fiscal year
51999-2000, a portion of the public benefits fee shall be an amount that, when added
6to 50% of the estimated public benefits fees charged by municipal utilities and retail
7electric cooperatives under sub. (5) (a) for that fiscal year, shall equal $24,000,000.

8In each fiscal year after fiscal year 1999-2000, a portion of the public benefits, the
9low-income assistance
fee shall be an amount that, when added to the sum of the
10following shall equal the low-income need target for that fiscal year determined by
11the department under sub. (2) (d) 1.:
SB459-engrossed, s. 31 12Section 31. 16.957 (4) (c) 1. a. of the statutes is amended to read:
SB459-engrossed,11,1513 16.957 (4) (c) 1. a. Fifty percent of the estimated public benefits The estimated
14low-income assistance fees charged by municipal utilities and retail electric
15cooperatives under sub. (5) (a) for that fiscal year.
SB459-engrossed, s. 32 16Section 32. 16.957 (4) (c) 1. c. of the statutes is amended to read:
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