Amendment SSA1-SB459

SB459-SSA1,15,25 76.28 (1) (d) "Gross revenues" for a light, heat and power company other than a qualified wholesale electric company or a transmission company means total environmental control charges paid to the company under a financing order issued under s. 196.027 (2) and total operating revenues as reported to the public service commission except revenues for interdepartmental sales and for interdepartmental rents as reported to the public service commission and deductions from the sales and use tax under s. 77.61 (4), except that the company may subtract from revenues either the actual cost of power purchased for resale, as reported to the public service commission, by a light, heat and power company, except a municipal light, heat and power company, that purchases under federal or state approved wholesale rates more than 50% of its electric power from a person other than an affiliated interest, as defined in s. 196.52 (1), if the revenue from that purchased electric power is included in the seller's gross revenues or the following percentages of the actual cost of power purchased for resale, as reported to the public service commission, by a light, heat and power company, except a municipal light, heat and power company that purchases more than 90% of its power and that has less than $50,000,000 of gross revenues: 10% for the fee assessed on May 1, 1988, 30% for the fee assessed on May 1, 1989, and 50% for the fee assessed on May 1, 1990, and thereafter. For a qualified wholesale electric company, "gross revenues" means total business revenues from those businesses included under par. (e) 1. to 4. For a transmission company, "gross revenues" means total operating revenues as reported to the public service commission, except revenues for transmission service that is provided to a public utility that is subject to the license fee under sub. (2) (d), to a public utility, as defined in s. 196.01 (5), or to a cooperative association organized under ch. 185 for the purpose of providing electricity to its members only. For an electric utility, as defined in s. 16.957 (1) (g), "gross revenues" does not include public benefits low-income assistance fees collected by the electric utility under s. 16.957 (4) (a) or (5) (a). For a generator public utility, "gross revenues" does not include any grants awarded to the generator public utility under s. 16.958 (2) (b). For a wholesale supplier, as defined in s. 16.957 (1) (w), "gross revenues" does not include any public benefits low-income assistance fees that are received from a municipal utility or retail electric cooperative or under a joint program established under s. 16.957 (5) (f). For a municipal utility, "gross revenues" does not include public benefits low-income assistance fees received by the municipal utility from a municipal utility or retail electric cooperative under a joint program established under s. 16.957 (5) (f).

SB459-SSA1, s. 50 Section 50. 76.48 (1g) (d) of the statutes is amended to read:

SB459-SSA1,16,19 76.48 (1g) (d) "Gross revenues" means total operating revenues, except revenues for interdepartmental sales and for interdepartmental rents, less deductions from the sales and use tax under s. 77.61 (4) and, in respect to any electric cooperative that purchases more than 50% of the power it sells, less the actual cost of power purchased for resale by an electric cooperative, if the revenue from that purchased electric power is included in the seller's gross revenues or if the electric cooperative purchased more than 50% of the power it sold in the year prior to January 1, 1988, from a seller located outside this state. For an electric cooperative, "gross revenues" does not include grants awarded to the electric cooperative under s. 16.958 (2) (b). For a retail electric cooperative, "gross revenues" does not include public benefits low-income assistance fees collected by the retail electric cooperative under s. 16.957 (5) (a), public benefits low-income assistance fees received by the retail electric cooperative from a retail electric cooperative or municipal utility under a joint program established under s. 16.957 (5) (f). For a wholesale supplier, as defined in s. 16.957 (1) (w), "gross revenues" does not include any public benefits low-income assistance fees that are received from a municipal utility, as defined in s. 16.957 (1) (q), or retail electric cooperative or under a joint program established under s. 16.957 (5) (f).

SB459-SSA1, s. 51 Section 51. 77.54 (44) of the statutes is amended to read:

SB459-SSA1,16,22 77.54 (44) The gross receipts from the collection of public benefits low-income assistance fees that are charged under s. 16.957 (4) (a) or (5) (a).

SB459-SSA1, s. 52 Section 52. 79.005 (4) (d) of the statutes is amended to read:

SB459-SSA1,17,2 79.005 (4) (d) Replacing steam generating equipment at a combustion-based renewable facility, as defined in s. 196.378 (1) (g), that is located in this state, to increase efficiency or capacity, if the facility remains a combustion-based renewable facility, as defined in s. 196.378 (1) (g), after replacing the equipment.

SB459-SSA1, s. 53 Section 53. 101.027 (1) (intro.) and (a) of the statutes are consolidated, renumbered 101.027 (1) and amended to read:

SB459-SSA1,17,8 101.027 (1) In this section: (a) "Energy, "energy conservation code" means the energy conservation code promulgated by the department that sets design requirements for construction and equipment for the purpose of energy conservation in public buildings and places of employment.

SB459-SSA1, s. 54 Section 54. 101.027 (1) (b) of the statutes is repealed.

SB459-SSA1, s. 55 Section 55. 101.027 (2) of the statutes is amended to read:

SB459-SSA1,18,2 101.027 (2) The department shall review the energy conservation code and shall promulgate rules that change the requirements of the energy conservation code to improve energy conservation. No rule may be promulgated that has not taken into account the cost of the energy conservation code requirement, as changed by the rule, in relationship to the benefits derived from that requirement, including the reasonably foreseeable economic and environmental benefits to the state from any reduction in the use of imported fossil fuel. The proposed rules changing the energy conservation code shall be submitted to the legislature in the manner provided under s. 227.19. In conducting a review under this subsection, the department shall consider incorporating, into the energy conservation code, design requirements from the most current national energy efficiency design standards, including standard 90.1 - 1989 the International Energy Conservation Code or an energy efficiency code other than standard 90.1 - 1989 the International Energy Conservation Code if that energy efficiency code is used to prescribe design requirements for the purpose of conserving energy in buildings and is generally accepted and used by engineers and the construction industry.

SB459-SSA1, s. 56 Section 56. 101.027 (3) (a) 1. of the statutes is amended to read:

SB459-SSA1,18,5 101.027 (3) (a) 1. A revision of standard 90.1 - 1989 the International Energy Conservation Code is published.

SB459-SSA1, s. 57 Section 57. 101.027 (3) (a) 2. of the statutes is amended to read:

SB459-SSA1,18,9 101.027 (3) (a) 2. Five Three years have passed from the date on which the department last submitted to the legislature proposed rules changing the energy conservation code.

SB459-SSA1, s. 58 Section 58. 101.027 (3) (b) 1. of the statutes is amended to read:

SB459-SSA1,18,17 101.027 (3) (b) 1. If the department begins a review under sub. (2) because a revision of standard 90.1 - 1989 the International Energy Conservation Code is published, the department shall complete its review of the energy conservation code, as defined in sub. (1), and submit to the legislature proposed rules changing the energy conservation code, as defined in sub. (1), no later than 18 months after the date on which the revision of standard 90.1 - 1989 the International Energy Conservation Code is published.

SB459-SSA1, s. 59 Section 59. 101.027 (3) (b) 2. of the statutes is amended to read:

SB459-SSA1,18,24 101.027 (3) (b) 2. If the department begins a review under sub. (2) because 5 3 years have passed from the date on which the department last submitted to the legislature proposed rules changing the energy conservation code, the department shall complete its review of the energy conservation code and submit to the legislature proposed rules changing the energy conservation code no later than 9 months after the last day of the 5-year 3-year period.

SB459-SSA1, s. 60 Section 60. 196.025 (1) (title) of the statutes is created to read:

SB459-SSA1,19,1 196.025 (1) (title) State energy policy.

SB459-SSA1, s. 61 Section 61. 196.025 (1) of the statutes is renumbered 196.025 (1) (a) and amended to read:

SB459-SSA1,19,8 196.025 (1) (a) Consideration of energy priorities. To Except as provided in pars. (b) to (d), to the extent cost-effective, technically feasible and environmentally sound, the commission shall implement the priorities under s. 1.12 (4) in making all energy-related decisions and orders, including advance plan strategic energy assessment, rate setting and rule-making orders.

SB459-SSA1, s. 62 Section 62. 196.025 (1) (b) to (d) of the statutes are created to read:

SB459-SSA1,19,16 196.025 (1) (b) Energy conservation and efficiency. In a proceeding regarding a request by an investor-owned electric public utility or wholesale supplier, as defined in s. 16.957 (1) (w), under s. 196.49, 196.491 (3), or 196.80 for authority to acquire, construct, install, or operate any plant, equipment, property, or facility, the commission is not required to evaluate energy conservation and efficiency as an element of or alternative to the proposal if the commission has fulfilled all of its duties and responsibilities under s. 196.374 and one of the following applies:

SB459-SSA1,19,18 1. If the applicant is an investor-owned electric public utility, the applicant has satisfied the requirements of s. 196.374 for that year, as specified in s. 196.374 (8).

SB459-SSA1,19,21 2. If the applicant is a wholesale supplier, as defined in s. 16.957 (1) (w), the commission determines that the applicant's members are in the aggregate substantially in compliance with s. 196.374 (7).

SB459-SSA1,19,22 (c) Renewable resources. 1. In this paragraph:

SB459-SSA1,19,23 a. "Renewable resource" has the meaning given in s. 196.374 (1) (j).

SB459-SSA1,19,24 b. "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).

SB459-SSA1,20,6 2. In a proceeding regarding a request by an investor-owned electric public utility or wholesale supplier under s. 196.49, 196.491 (3), or 196.80 for authority to acquire, construct, install, or operate any plant, equipment, property, or facility, the commission is not required to consider renewable resources as an element of or alternative to the proposal if the commission has fulfilled all of its duties and responsibilities under s. 196.378 and one of the following applies:

SB459-SSA1,20,8 a. If the applicant is an investor-owned electric public utility, the applicant is in compliance with the requirements of s. 196.378 (2) for that year.

SB459-SSA1,20,11 b. If the applicant is a wholesale supplier, the commission determines that the applicant's members are in the aggregate substantially in compliance with s. 196.378 (2).

SB459-SSA1,20,16 (d) Transmission facilities. In a proceeding regarding a request by a public utility under s. 196.49, 196.491 (3), or 196.80, to acquire, construct, install, or operate an electric transmission facility or associated equipment, the commission is not required to find that approval of the proposal would implement the policies under s. 1.12 (4).

SB459-SSA1, s. 63 Section 63. 196.025 (1m) (title) of the statutes is created to read:

SB459-SSA1,20,18 196.025 (1m) (title) Transmission corridors.

SB459-SSA1, s. 64 Section 64. 196.025 (2) (title) of the statutes is created to read:

SB459-SSA1,20,20 196.025 (2) (title) Environmental impacts.

SB459-SSA1, s. 65 Section 65. 196.025 (2m) (title) of the statutes is created to read:

SB459-SSA1,20,22 196.025 (2m) (title) Coordination with department of natural resources.

SB459-SSA1, s. 66 Section 66. 196.025 (3) (title) of the statutes is created to read:

SB459-SSA1,20,24 196.025 (3) (title) Reliability reports.

SB459-SSA1, s. 67 Section 67. 196.025 (4) (title) of the statutes is created to read:

SB459-SSA1,21,1 196.025 (4) (title) Small-scale generation incentives.

SB459-SSA1, s. 68 Section 68. 196.025 (5) (title) of the statutes is created to read:

SB459-SSA1,21,3 196.025 (5) (title) Market power study.

SB459-SSA1, s. 69 Section 69. 196.374 of the statutes is repealed and recreated to read:

SB459-SSA1,21,6 196.374 Energy efficiency and renewable resource programs. (1) Definitions. In this section:

SB459-SSA1,21,8 (a) "Agricultural producer" means a person engaged in an agricultural activity, as defined in s. 101.10 (1) (a).

SB459-SSA1,21,11 (b) "Commitment to community program" means an energy efficiency or load management program by or on behalf of a municipal utility or retail electric cooperative.

SB459-SSA1,21,14 (c) "Customer application of renewable resources" means the generation of energy from renewable resources that takes place on the premises of a customer of an energy utility or municipal utility or a member of a retail electric cooperative.

SB459-SSA1,21,18 (d) "Energy efficiency program" means a program for reducing the usage or increasing the efficiency of the usage of energy by a customer or member of an energy utility, municipal utility, or retail electric cooperative. "Energy efficiency program" does not include load management.

SB459-SSA1,21,20 (e) "Energy utility" means an investor-owned electric or natural gas public utility.

SB459-SSA1,21,25 (f) "Load management program" means a program to allow an energy utility, municipal utility, wholesale electric cooperative, as defined in s. 16.957 (1) (v), retail electric cooperative, or municipal electric company, as defined in s. 66.0825 (3) (d), to control or manage daily or seasonal customer demand associated with equipment or devices used by customers or members.

SB459-SSA1,22,1 (g) "Local unit of government" has the meaning given in s. 23.24 (4) (a) 1.

SB459-SSA1,22,2 (h) "Municipal utility" has the meaning given in s. 16.957 (1) (q).

SB459-SSA1,22,6 (i) "Ordered program" means an energy efficiency or renewable resource program that an energy utility commenced on or after January 1, 2001, under a commission order issued on or after January 1, 2001, and in effect before the effective date of this paragraph .... [revisor inserts date].

SB459-SSA1,22,10 (j) "Renewable resource" means a resource that derives energy from any source other than coal, petroleum products, nuclear power or, except as used in a fuel cell, natural gas. "Renewable resource" includes resources deriving energy from any of the following:

SB459-SSA1,22,11 1. Solar energy.

SB459-SSA1,22,12 2. Wind power.

SB459-SSA1,22,13 3. Water power.

SB459-SSA1,22,14 4. Biomass.

SB459-SSA1,22,15 5. Geothermal technology.

SB459-SSA1,22,16 6. Tidal or wave action.

SB459-SSA1,22,18 7. Fuel cell technology that uses, as determined by the commission, a renewable fuel.

SB459-SSA1,22,24 (k) "Renewable resource program" means a program for encouraging the development or use of customer applications of renewable resources, including educating customers or members about renewable resources, encouraging customers or members to use renewable resources, and encouraging the transfer of new or emerging technologies from research, development, and demonstration to commercial implementation.

SB459-SSA1,22,25 (L) "Retail electric cooperative" has the meaning given in s. 16.957 (1) (t).

SB459-SSA1,23,4 (m) "Shared savings program" means a program under which a person finances the installation of energy efficiency improvements or renewable resources systems in the facilities of a customer and recovers the cost of the installation from a portion of the cost savings realized by the customer as a result of the installation.

SB459-SSA1,23,5 (n) "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).

SB459-SSA1,23,6 (o) "Wholesale supply percentage" has the meaning given in s. 16.957 (1) (x).

SB459-SSA1,23,14 (2) Energy efficiency and renewable resource programs. (a) Statewide programs. 1. The energy utilities in this state shall collectively establish and fund statewide energy efficiency and renewable resource programs. The energy utilities shall contract, on the basis of competitive bids, with one or more persons to administer the programs. The utilities may not execute a contract under this subdivision unless the commission has approved the contract. The commission shall require each energy utility to spend the amount required under sub. (3) (b) 2. to fund statewide energy efficiency and renewable resource programs.

SB459-SSA1,23,19 2. The purpose of the programs under this paragraph shall be to help achieve environmentally sound and adequate energy supplies at reasonable cost, consistent with the commission's responsibilities under s. 196.025 (1) (a) and the utilities' obligations under this chapter. The programs shall include, at a minimum, all of the following:

SB459-SSA1,23,22 a. Components to address the energy needs of residential, commercial, agricultural, institutional, and industrial energy users and local units of government.

SB459-SSA1,24,6 b. Components to reduce the energy costs incurred by local units of government and agricultural producers, by increasing the efficiency of energy use by local units of government and agricultural producers. The commission shall ensure that not less than 10 percent of the moneys utilities are required to spend under subd. 1. or sub. (3) (b) 2. is spent annually on programs under this subdivision except that, if the commission determines that the full amount cannot be spent on cost-effective programs for local units of government and agricultural producers, the commission shall ensure that any surplus funds be spent on programs to serve commercial, institutional, and industrial customers.

SB459-SSA1,24,10 c. Initiatives and market strategies that address the needs of individuals or businesses facing the most significant barriers to creation of or participation in markets for energy efficient products that the individual or business manufactures or sells or energy efficiency services that the individual or business provides.

SB459-SSA1,24,15 3. The commission may not require an energy utility to administer or fund any energy efficiency or renewable resource program that is in addition to the programs required under subd. 1. and any ordered program of the utility. This subdivision does not limit the authority of the commission to enforce an energy utility's obligations under s. 196.378.

SB459-SSA1,24,22 (b) Utility-administered programs. 1. An energy utility may, with commission approval, administer or fund one or more energy efficiency programs that is limited to large commercial, industrial, institutional, or agricultural customers in its service territory. An energy utility shall pay for a program under this subdivision with a portion of the amount required under sub. (3) (b) 2., as approved by the commission. The commission may not order an energy utility to administer or fund a program under this subdivision.

SB459-SSA1,25,2 2. An energy utility may, with commission approval, administer or fund an energy efficiency or renewable resource program that is in addition to the programs required under par. (a) or authorized under subd. 1. The commission may not order an energy utility to administer or fund a program under this subdivision.

SB459-SSA1,25,7 3. An energy utility that administers or funds a program under subd. 1. or 2. or an ordered program may request, and the commission may approve, to modify or discontinue, in whole or in part, the ordered program. An energy utility shall request the establishment, modification, or discontinuation of a program under subd. 1. or 2. or an ordered program as part of a proceeding under sub. (3) (b) 1.

SB459-SSA1,25,14 (c) Customer programs. A customer of an energy utility may, with commission approval, administer and fund its own energy efficiency programs. A customer that funds a program under this paragraph may deduct the amount of the funding from the amount the customer is required to pay for the energy utility's recovery of amounts under sub. (5) (a) and the energy utility may credit the amount of the funding against the amount the energy utility is required to spend under sub. (3) (b) 2.

SB459-SSA1,25,24 (3) Commission duties. (a) In general. The commission shall have oversight of programs under sub. (2). The commission shall maximize coordination of program delivery, including coordination between programs under subs. (2) (a) 1., (b) 1. and 2., and (c) and (7), ordered programs, low-income weatherization programs under s. 16.957, renewable resource programs under s. 196.378, and other energy efficiency or renewable resource programs. The commission shall cooperate with the department of natural resources to ensure coordination of energy efficiency and renewable resource programs with air quality programs and to maximize and document the air quality improvement benefits that can be realized from energy efficiency and renewable resource programs.

SB459-SSA1,26,9 (b) Programs and funding. 1. At least every 4 years, after notice and opportunity to be heard, the commission shall, by order, evaluate the energy efficiency and renewable resource programs under sub. (2) (a) 1., (b) 1. and 2., and (c) and ordered programs and set or revise goals, priorities, and measurable targets for the programs. The commission shall give priority to programs that moderate the growth in electric and natural gas demand and usage, facilitate markets and assist market providers to achieve higher levels of energy efficiency, promote energy reliability and adequacy, avoid adverse environmental impacts from the use of energy, and promote rural economic development.

SB459-SSA1,26,16 2. The commission shall require each energy utility to spend 1.2 percent of its annual operating revenues to fund the utility's programs under sub. (2) (b) 1., the utility's ordered programs, and the utility's share of the statewide energy efficiency and renewable resource programs under sub. (2) (a) 1. Subject to approval under subd. 3., the commission may require each energy utility to spend a larger percentage of its annual operating revenues to fund these programs. The commission may make such a requirement based on the commission's consideration of all of the following:

SB459-SSA1,26,20 a. Studies of potential energy-efficiency improvements that could be made in this state, including at least one study completed within the preceding 2 years that provides a prospective 5-year and 10-year estimate of such potential that is cost-effective.

SB459-SSA1,26,22 b. The potential short-term and long-term impacts on electric and natural gas rates and alternative means to mitigate such impacts.

SB459-SSA1,26,25 c. The impact on the continuation and effectiveness of existing energy efficiency and renewable resource programs, and the ability of such programs to capture time-limited and cost-effective energy-efficiency opportunities.

SB459-SSA1,27,2 d. The impact on the reliability and adequacy of systems for the generation and transmission of electricity and the transmission of natural gas.

SB459-SSA1,27,3 e. Societal impacts.