SB459-engrossed,23,1818 (g) "Local unit of government" has the meaning given in s. 23.24 (4) (a) 1.
SB459-engrossed,23,1919 (h) "Municipal utility" has the meaning given in s. 16.957 (1) (q).
SB459-engrossed,23,2320 (i) "Ordered program" means an energy efficiency or renewable resource
21program that an energy utility commenced on or after January 1, 2001, under a
22commission order issued on or after January 1, 2001, and in effect before the effective
23date of this paragraph .... [revisor inserts date].
SB459-engrossed,24,224 (j) "Renewable resource" means a resource that derives energy from any source
25other than coal, petroleum products, nuclear power or, except as used in a fuel cell,

1natural gas. "Renewable resource" includes resources deriving energy from any of
2the following:
SB459-engrossed,24,33 1. Solar energy.
SB459-engrossed,24,44 2. Wind power.
SB459-engrossed,24,55 3. Water power.
SB459-engrossed,24,66 4. Biomass.
SB459-engrossed,24,77 5. Geothermal technology.
SB459-engrossed,24,88 6. Tidal or wave action.
SB459-engrossed,24,109 7. Fuel cell technology that uses, as determined by the commission, a renewable
10fuel.
SB459-engrossed,24,1611 (k) "Renewable resource program" means a program for encouraging the
12development or use of customer applications of renewable resources, including
13educating customers or members about renewable resources, encouraging
14customers or members to use renewable resources, and encouraging the transfer of
15new or emerging technologies from research, development, and demonstration to
16commercial implementation.
SB459-engrossed,24,1717 (L) "Retail electric cooperative" has the meaning given in s. 16.957 (1) (t).
SB459-engrossed,24,1818 (n) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).
SB459-engrossed,24,1919 (o) "Wholesale supply percentage" has the meaning given in s. 16.957 (1) (x).
SB459-engrossed,25,2 20(2) Energy efficiency and renewable resource programs. (a) Statewide
21programs.
1. The energy utilities in this state shall collectively establish and fund
22statewide energy efficiency and renewable resource programs. The energy utilities
23shall contract, on the basis of competitive bids, with one or more persons to develop
24and administer the programs. The utilities may not execute a contract under this
25subdivision unless the commission has approved the contract. The commission shall

1require each energy utility to spend the amount required under sub. (3) (b) 2. to fund
2statewide energy efficiency and renewable resource programs.
SB459-engrossed,25,73 2. The purpose of the programs under this paragraph shall be to help achieve
4environmentally sound and adequate energy supplies at reasonable cost, consistent
5with the commission's responsibilities under s. 196.025 (1) (ar) and the utilities'
6obligations under this chapter. The programs shall include, at a minimum, all of the
7following:
SB459-engrossed,25,108 a. Components to address the energy needs of residential, commercial,
9agricultural, institutional, and industrial energy users and local units of
10government.
SB459-engrossed,25,2111 b. Components to reduce the energy costs incurred by local units of government
12and agricultural producers, by increasing the efficiency of energy use by local units
13of government and agricultural producers. The commission shall ensure that not
14less than 10 percent of the moneys utilities are required to spend under subd. 1. or
15sub. (3) (b) 2. is spent annually on programs under this subdivision except that, if the
16commission determines that the full amount cannot be spent on cost-effective
17programs for local units of government and agricultural producers, the commission
18shall ensure that any surplus funds be spent on programs to serve commercial,
19institutional, and industrial customers. A local unit of government that receives
20assistance under this subd. 2. b. shall apply all costs savings realized from the
21assistance to reducing the property tax levy.
SB459-engrossed,25,2522 c. Initiatives and market strategies that address the needs of individuals or
23businesses facing the most significant barriers to creation of or participation in
24markets for energy efficient products that the individual or business manufactures
25or sells or energy efficiency services that the individual or business provides.
SB459-engrossed,26,2
1d. Initiatives for research and development regarding the environmental and
2economic impacts of energy use in this state.
SB459-engrossed,26,73 3. The commission may not require an energy utility to administer or fund any
4energy efficiency or renewable resource program that is in addition to the programs
5required under subd. 1. and any ordered program of the utility. This subdivision does
6not limit the authority of the commission to enforce an energy utility's obligations
7under s. 196.378.
SB459-engrossed,26,148 (b) Utility-administered programs. 1. An energy utility may, with commission
9approval, administer or fund one or more energy efficiency programs that is limited
10to, as determined by the commission, large commercial, industrial, institutional, or
11agricultural customers in its service territory. An energy utility shall pay for a
12program under this subdivision with a portion of the amount required under sub. (3)
13(b) 2., as approved by the commission. The commission may not order an energy
14utility to administer or fund a program under this subdivision.
SB459-engrossed,26,1815 2. An energy utility may, with commission approval, administer or fund an
16energy efficiency or renewable resource program that is in addition to the programs
17required under par. (a) or authorized under subd. 1. The commission may not order
18an energy utility to administer or fund a program under this subdivision.
SB459-engrossed,26,2419 3. An energy utility that administers or funds a program under subd. 1. or 2.
20or an ordered program may request, and the commission may approve, to modify or
21discontinue, in whole or in part, the ordered program. An energy utility may request
22the establishment, modification, or discontinuation of a program under subd. 1. or
232. at any time and shall request the modification or discontinuation of an ordered
24program as part of a proceeding under sub. (3) (b) 1.
SB459-engrossed,27,10
1(c) Large energy customer programs. A customer of an energy utility may, with
2commission approval, administer and fund its own energy efficiency programs if the
3customer satisfies the definition of a large energy customer for any month in the 12
4months preceding the date of the customer's request for approval. A customer may
5request commission approval at any time. A customer that funds a program under
6this paragraph may deduct the amount of the funding from the amount the energy
7utility may collect from the customer under sub. (5) (b). If the customer deducts the
8amount of the funding from the amount the energy utility may collect from the
9customer under sub. (5) (b), the energy utility shall credit the amount of the funding
10against the amount the energy utility is required to spend under sub. (3) (b) 2.
SB459-engrossed,27,20 11(3) Commission duties. (a) In general. The commission shall have oversight
12of programs under sub. (2). The commission shall maximize coordination of program
13delivery, including coordination between programs under subs. (2) (a) 1., (b) 1. and
142., and (c) and (7), ordered programs, low-income weatherization programs under s.
1516.957, renewable resource programs under s. 196.378, and other energy efficiency
16or renewable resource programs. The commission shall cooperate with the
17department of natural resources to ensure coordination of energy efficiency and
18renewable resource programs with air quality programs and to maximize and
19document the air quality improvement benefits that can be realized from energy
20efficiency and renewable resource programs.
SB459-engrossed,28,421 (b) Programs and funding. 1. At least every 4 years, after notice and
22opportunity to be heard, the commission shall, by order, evaluate the energy
23efficiency and renewable resource programs under sub. (2) (a) 1., (b) 1. and 2., and
24(c) and ordered programs and set or revise goals, priorities, and measurable targets
25for the programs. The commission shall give priority to programs that moderate the

1growth in electric and natural gas demand and usage, facilitate markets and assist
2market providers to achieve higher levels of energy efficiency, promote energy
3reliability and adequacy, avoid adverse environmental impacts from the use of
4energy, and promote rural economic development.
SB459-engrossed,28,115 2. The commission shall require each energy utility to spend 1.2 percent of its
6annual operating revenues to fund the utility's programs under sub. (2) (b) 1., the
7utility's ordered programs, and the utility's share of the statewide energy efficiency
8and renewable resource programs under sub. (2) (a) 1. Subject to approval under
9subd. 3., the commission may require each energy utility to spend a larger percentage
10of its annual operating revenues to fund these programs. The commission may make
11such a requirement based on the commission's consideration of all of the following:
SB459-engrossed,28,1512 a. Studies of potential energy-efficiency improvements that could be made in
13this state, including at least one study completed within the preceding 2 years that
14provides a prospective 5-year and 10-year estimate of such potential that is
15cost-effective.
SB459-engrossed,28,1716 b. The potential short-term and long-term impacts on electric and natural gas
17rates and alternative means to mitigate such impacts.
SB459-engrossed,28,2018 c. The impact on the continuation and effectiveness of existing energy efficiency
19and renewable resource programs, and the ability of such programs to capture
20time-limited and cost-effective energy-efficiency opportunities.
SB459-engrossed,28,2221 d. The impact on the reliability and adequacy of systems for the generation and
22transmission of electricity and the transmission of natural gas.
SB459-engrossed,28,2323 e. Societal impacts.
SB459-engrossed,28,2524 f. The potential for displacing or delaying construction of electric generating
25plants and transmission lines.
SB459-engrossed,29,2
1g. Economic impacts that are likely to accrue from reducing state and private
2expenditures on coal, natural gas, fuel oil, and other fossil fuel imports.
SB459-engrossed,29,33 h. Any other relevant factors.
SB459-engrossed,29,184 3. The commission shall submit to the joint committee on finance any proposal
5to require each energy utility to spend a larger percentage of its annual operating
6revenues than the percentage specified in subd. 2. (intro.) to fund the programs
7specified in subd. 2. (intro.). If the cochairpersons of the committee do not notify the
8commission within 10 working days after the commission submits such a proposal
9that the committee has scheduled a meeting to review the proposal, the commission
10may require each energy utility to spend the percentage specified in the proposal.
11If, within 10 working days after the commission submits a proposal, the
12cochairpersons of the committee notify the commission that the committee has
13scheduled a meeting to review the proposal, but, within 90 days of providing the
14notice, the committee does not object to the proposal, the commission may require
15each energy utility to spend the percentage specified in the proposal. If, within 90
16days after providing the notice, the committee objects to the proposal, the
17commission may not require each energy utility to spend the percentage specified in
18the proposal.
SB459-engrossed,29,1919 (c) Reviews and approvals. The commission shall do all of the following:
SB459-engrossed,29,2120 1. Review and approve contracts under sub. (2) (a) 1. between the energy
21utilities and program administrators.
SB459-engrossed,30,222 2. Review requests under sub. (2) (b). The commission may condition its
23approval of a request under sub. (2) (b) as necessary to protect the public interest.
24The commission shall approve a request under sub. (2) (b) 1. or 2. if the commission

1determines that a proposed energy efficiency or renewable resource program is in the
2public interest and satisfies all of the following:
SB459-engrossed,30,43 a. The program has specific savings targets and performance goals approved
4by the commission.
SB459-engrossed,30,55 b. The program is subject to independent evaluation by the commission.
SB459-engrossed,30,136 (d) Audits. Annually, the commission shall contract with one or more
7independent auditors to prepare a financial and performance audit of the programs
8specified in par. (b) 1. The purpose of the performance audit shall be to evaluate the
9programs and measure the performance of the programs against the goals and
10targets set by the commission under par. (b) 1. The person or persons with whom the
11energy utilities contract for program administration under sub. (2) (a) 1. shall pay
12the costs of the audits from the amounts paid under the contracts under sub. (2) (a)
131.
SB459-engrossed,30,1614 (e) Reports. Annually, the commission shall prepare and post on the
15commission's Internet site a report and submit a summary of not more than 2 pages
16to the legislature under s. 13.172 (2). The reports shall describe each of the following:
SB459-engrossed,30,1917 1. The expenses of the commission, utilities, and program administrators
18contracted under sub. (2) (a) 1. in administering or participating in the programs
19under sub. (2) (a) 1.
SB459-engrossed,30,2220 2. The effectiveness of the programs specified in par. (b) 1. and sub. (7) in
21reducing demand for electricity and increasing the use of renewable resources owned
22by customers or members.
SB459-engrossed,30,2323 3. The results of audits under par. (d).
SB459-engrossed,30,2424 4. Any other information required by the commission.
SB459-engrossed,31,2
1(f) Rules. The commission shall promulgate rules to establish all of the
2following:
SB459-engrossed,31,63 1. Procedures for energy utilities to collectively contract with program
4administrators for administration of statewide programs under sub. (2) (a) 1. and to
5receive contributions from municipal utilities and retail electric cooperatives under
6sub. (7) (b) 2.
SB459-engrossed,31,97 2. Procedures and criteria for commission review and approval of contracts for
8administration of statewide programs under sub. (2) (a) 1., including criteria for the
9selection of program administrators under sub. (2) (a) 1.
SB459-engrossed,31,1210 3. Procedures and criteria for commission review and approval of
11utility-administered programs under sub. (2) (b) 1. and 2., customer programs under
12sub. (2) (c), and requests under sub. (2) (b) 3.
SB459-engrossed,31,1513 4. Minimum requirements for energy efficiency and renewable resource
14programs under sub. (2) (a) 1. and customer energy efficiency programs under sub.
15(2) (c).
SB459-engrossed,31,19 16(4) Discrimination prohibited; competition. (a) In implementing programs
17under sub. (2) (a) 1., including the awarding of grants or contracts, a person who
18contracts with the utilities under sub. (2) (a) 1., or a person who subcontracts with
19such a person:
SB459-engrossed,31,2220 1. May not discriminate against an energy utility or its affiliate or a wholesale
21supplier or its affiliate solely on the basis of its status as an energy utility or its
22affiliate or wholesale supplier or its affiliate.
SB459-engrossed,31,2423 2. Shall provide services to utility customers on a nondiscriminatory basis and
24subject to a customer's choice.
SB459-engrossed,32,7
1(b) An energy utility that provides financing under an energy efficiency
2program under sub. (2) (b) 1. or 2. for installation, by a customer, of energy efficiency
3or renewable resource processes, equipment, or appliances, or an affiliate of such a
4utility, may not sell to or install for the customer those processes, equipment,
5appliances, or related materials. The customer shall acquire the installation of the
6processes, equipment, appliances, or related materials from an independent
7contractor of the customer's choice.
SB459-engrossed,32,10 8(5) Cost recovery. (a) Rate-making orders. The commission shall ensure in
9rate-making orders that an energy utility recovers from its ratepayers the amounts
10the energy utility spends for programs under sub. (2) (a) 1.
SB459-engrossed,32,1611 (b) Large energy customers. 1. Except as provided in sub. (2) (c) and par. (bm)
122., if the commission has determined that a customer of an energy utility is a large
13energy customer under 2005 Wisconsin Act .... (this act), section 102 (8) (b), then,
14each month, the energy utility shall collect from the customer, for recovery of
15amounts under par. (a), the amount determined by the commission under 2005
16Wisconsin Act .... (this act), section 102 (8) (c).
SB459-engrossed,33,517 2. A customer of an energy utility that the commission has not determined is
18a large energy customer under 2005 Wisconsin Act .... (this act), section 102 (8) (b),
19may petition the commission for a determination that the customer is a large energy
20customer. The commission shall determine that a petitioner is a large energy
21customer if the petitioner satisfies the definition of large energy customer for any
22month in the 12 months preceding the date of the petition. If the commission makes
23such a determination, the commission shall also determine the amount that the
24energy utility may collect from the customer each month for recovery of the amounts
25under par. (a). The commission shall determine an amount that ensures that the

1amount collected from the customer is similar to the amounts collected from other
2customers that have a similar level of energy costs as the customer. Except as
3provided in sub. (2) (c) and par. (bm) 2., each month, the energy utility shall collect
4from the customer, for recovery of amounts under par. (a), the amount determined
5by the commission under this subdivision.
SB459-engrossed,33,146 (bm) Allocation proposal. 1. The commission shall commence a proceeding for
7for creating a proposal for allocating within different classes of customers an
8equitable distribution of the recovery of the amounts under par. (a) by all energy
9utilities. The purpose of the allocation is to ensure that customers of an energy utility
10within a particular class are treated equitably with respect to customers of other
11energy utilities within the same class. No later than December 31, 2008, the
12commission shall submit the proposal to the governor and chief clerk of each house
13of the legislature for distribution to the appropriate standing committees of the
14legislature under s. 13.172 (3).
SB459-engrossed,33,1815 2. If, by July 1, 2009, legislation based on the proposal under subd. 1. has not
16been enacted, the commission shall, beginning on July 1, 2009, annually increase the
17amount that an energy utility may recover from a large energy customer each month
18under par. (b) only by a percentage that is the lesser of the following:
SB459-engrossed,33,2019 a. The percentage increase in the energy utility's operating revenues during the
20preceding year.
SB459-engrossed,33,2321 b. The percentage increase in the consumer price index for all urban
22consumers, U.S. city average, as determined by the U.S. department of labor, during
23the preceding year.
SB459-engrossed,34,3
1(c) Accounting. The commission may prescribe the accounting treatment of
2energy utility expenditures required under this section, including the use of any
3escrow accounting.
SB459-engrossed,34,74 (d) Equitable contributions. Subject to pars. (b) and (bm) 2., the commission
5shall ensure that the cost of energy efficiency and renewable resource programs is
6equitably divided among customer classes so that similarly situated ratepayers
7contribute equivalent amounts for the programs.
SB459-engrossed,34,15 8(5m) Benefit and grant opportunities. (a) The commission shall ensure that,
9on an annual basis, each customer class of an energy utility has the opportunity to
10receive grants and benefits under energy efficiency programs in an amount equal to
11the amount that is recovered from the customer class under sub. (5) (a). Biennially,
12the commission shall submit a report to the governor, and the chief clerk of each
13house of the legislature for distribution to the legislature under s. 13.172 (2), that
14summarizes the total amount recovered from each customer class and the total
15amount of grants made to, and benefits received by, each customer class.
SB459-engrossed,34,2116 (b) The commission shall ensure that customers throughout the state have an
17equivalent opportunity to receive the benefits of the programs under sub. (2) (a) 1.
18and (b) 1. The commission shall ensure that statewide programs are designed to
19ensure that retail customers in areas not served by programs under sub. (2) (b) 1.
20receive equivalent opportunities as those in areas served by programs under sub. (2)
21(b) 1.
SB459-engrossed,35,2 22(6) Annual statements. Annually, the commission shall prepare a statement
23that describes the programs under sub. (2) (a) 1., (b) 1. and 2., and (c), and ordered
24programs, administered or funded by the energy utility and presents cost and benefit

1information for those programs. An energy utility shall provide each of its customers
2with a copy of the statement.
SB459-engrossed,35,9 3(7) Municipal utilities and retail electric cooperatives. (a) Requirement to
4charge fees.
1. Each retail electric cooperative and municipal utility shall charge a
5monthly fee to each customer or member in an amount that is sufficient for the retail
6electric cooperative or municipal utility to collect an annual average of $8 per meter.
7A retail electric cooperative or municipal utility may determine the amount that a
8particular class of customers or members is required to pay under this subdivision
9and may charge different fees to different classes of customers or members.
SB459-engrossed,35,1210 2. Notwithstanding subd. 1., in any month, the monthly fee under subd. 1. may
11not exceed 1.5 percent of the total of every other charge for which the member or
12customer is billed for that month or $375 per month, whichever is less.
SB459-engrossed,35,1713 (b) Commitment to community programs. 1. Except as provided in subd. 2.,
14each retail electric cooperative and municipal utility shall spend the fees that it
15charges under par. (a) on commitment to community programs. The purpose of the
16programs under this paragraph shall be to help achieve environmentally sound and
17adequate energy supplies at reasonable cost.
SB459-engrossed,36,218 2. No later than October 1, 2007, and no later than every 3rd year after that
19date, each municipal utility or retail electric cooperative shall notify the commission
20whether it has elected to contribute the fees that it charges under par. (a) to statewide
21programs established under sub. (2) (a) 1. in each year of the 3-year period for which
22it has made the election. If a municipal utility or retail electric cooperative elects to
23contribute to the statewide programs established under sub. (2) (a) 1., the utility or
24cooperative shall contribute the fees that it collects under par. (a) to the payment of
25contracts under sub. (2) (a) 1. for administration of the statewide programs, as

1specified in the rules under sub. (3) (f) 1., in each year of the 3-year period for which
2the utility or cooperative has made the election.
SB459-engrossed,36,103 (c) Wholesale supplier credit. If a wholesale supplier has established an energy
4efficiency or load management program, a municipal utility or retail electric
5cooperative that is a customer or member of the wholesale supplier may include an
6amount equal to the product of the municipal utility's or retail electric cooperative's
7wholesale supply percentage and the amount that the wholesale supplier has spent
8on energy efficiency or load management programs in a year in calculating the
9amount that the municipal utility or retail electric cooperative has spent on
10commitment to community programs under par. (b).
SB459-engrossed,36,1411 (d) Joint programs. Municipal utilities or retail electric cooperatives may
12establish joint commitment to community programs, except that each municipal
13utility or retail electric cooperative that participates in a joint program shall comply
14with the spending requirements under par. (b).
SB459-engrossed,36,1815 (e) Reports. 1. Annually, each municipal utility and retail electric cooperative
16that spends the fee that it charges under par. (a) for commitment to community
17programs under par. (b) shall provide for an independent audit of its programs and
18submit a report to the commission that describes all of the following:
SB459-engrossed,36,2219 a. An accounting of fees charged to customers or members under par. (a) in the
20year and expenditures on commitment to community programs under par. (b),
21including any amounts included in the municipal utility's or retail electric
22cooperative's calculations under par. (c).
SB459-engrossed,36,2423 b. A description of commitment to community programs established by the
24municipal utility or retail electric cooperative in the year.
SB459-engrossed,37,2
1c. The effectiveness of the commitment to community programs in reducing
2demand for electricity by customers or members.
SB459-engrossed,37,33 d. The results of audits under this subdivision.
SB459-engrossed,37,64 2. The commission shall require that municipal utilities and retail electric
5cooperatives file reports under subd. 1. electronically, in a format that allows for
6tabulation, comparison, and other analysis of the reports.
SB459-engrossed,37,87 3. The commission shall maintain reports filed under subd. 1. for at least 6
8years.
SB459-engrossed,37,11 9(8) Compliance. An energy utility that spends the full amount required under
10sub. (3) (b) 2. in any year is considered to have satisfied its requirements under this
11section for that year.
SB459-engrossed, s. 70 12Section 70. 196.378 (1) (a) of the statutes is renumbered 196.378 (1) (ar)
13amended to read:
SB459-engrossed,37,1914 196.378 (1) (ar) "Biomass" means a resource that derives energy from wood or
15plant material or residue, biological waste, crops grown for use as a resource or
16landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or
17nonvegetation-based industrial, commercial or household waste, except that
18"biomass" includes refuse-derived fuel used for a renewable facility that was in
19service in this state before January 1, 1998.
SB459-engrossed, s. 71 20Section 71. 196.378 (1) (ag) of the statutes is created to read:
SB459-engrossed,37,2221 196.378 (1) (ag) "Baseline renewable percentage" means the average of an
22energy provider's renewable energy percentage for 2001, 2002, and 2003.
SB459-engrossed, s. 72 23Section 72. 196.378 (1) (bm) of the statutes is repealed.
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