Amendment ASA1-AB755

LRBs0313/1

MDK/GMM/MES:cjs&nwn:jf

2009 - 2010 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2009 ASSEMBLY BILL 755

March 1, 2010 - Offered by Representative Mason.

AB755-ASA1,1,11 An Act to amend 66.0627 (title), 66.0627 (1) (a), 66.0627 (8), 103.49 (3) (ar), 109.09 (1), 111.322 (2m) (c), 196.374 (2) (a) 1., 196.374 (3) (b) 2. (intro.), 196.374 (3) (b) 3., 196.374 (4) (b), 227.01 (13) (t), 946.15 (1), 946.15 (2), 946.15 (3) and 946.15 (4); and to create 20.445 (1) (jg), 66.0627 (1) (d), 106.06, 196.374 (2) (d), 196.374 (3) (b) 3m., 196.3745 and 709.03 (form) C. 25m. of the statutes; relating to: allowing certain utilities to administer investment programs for energy and water efficiency improvements and renewable energy applications, creating requirements for political subdivision loans for similar improvements and applications, certain apprenticeship training grants, providing an exemption from emergency rule procedures, granting rule-making authority, and making an appropriation.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB755-ASA1, s. 1 Section 1. 20.445 (1) (jg) of the statutes is created to read:

AB755-ASA1,2,2 20.445 (1) (jg) Apprenticeship training grants. All moneys received under s. 196.374 (3) (b) 3m., for making grants under s. 106.06.

AB755-ASA1, s. 2 Section 2. 66.0627 (title) of the statutes, as affected by 2009 Wisconsin Act 11, is amended to read:

AB755-ASA1,2,6 66.0627 (title) Special charges for current services and energy and water efficiency improvement loans.

AB755-ASA1, s. 3 Section 3. 66.0627 (1) (a) of the statutes, as created by 2009 Wisconsin Act 11, is amended to read:

AB755-ASA1,2,11 66.0627 (1) (a) "Energy efficiency improvement" means an improvement to a residential any type of premises that reduces the usage of energy, or increases the efficiency of energy usage, at the premises.

AB755-ASA1, s. 4 Section 4. 66.0627 (1) (d) of the statutes is created to read:

AB755-ASA1,2,15 66.0627 (1) (d) "Water efficiency improvement" means an improvement to any type of premises that reduces the usage of water, or increases the efficiency of water usage, at the premises.

AB755-ASA1, s. 5 Section 5. 66.0627 (8) of the statutes, as created by 2009 Wisconsin Act 11, is amended to read:

AB755-ASA1,3,5 66.0627 (8) Subject to s. 196.3745, a political subdivision may make a loan to a resident of an owner of a premises located in the political subdivision for making or installing an energy efficiency improvement, a water efficiency improvement, or a renewable resource application to the resident's residential property premises, or enter into an agreement with the owner regarding loan repayments to a 3rd party for owner-arranged financing for such purposes. If a political subdivision makes such a loan or enters into such an agreement, the political subdivision may collect the loan repayment as a special charge under this section. A political subdivision may also collect the loan repayment as a special tax, using the method and procedures described in s. 66.0907 (3) (f). Notwithstanding the provisions of sub. (4), a special charge imposed under this subsection may be collected in not more than 10 annual installments and may be included in the current or next tax roll for collection and settlement under ch. 74 even if the special charge is not delinquent.

AB755-ASA1, s. 6 Section 6 . 103.49 (3) (ar) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755-ASA1,3,14 103.49 (3) (ar) In determining prevailing wage rates under par. (a) or (am), the department may not use data from projects that are subject to this section, s. 66.0903, 66.0904, 103.50, 196.3745 (5) (a) 1., or 229.8275 or 40 USC 3142 unless the department determines that there is insufficient wage data in the area to determine those prevailing wage rates, in which case the department may use data from projects that are subject to this section, s. 66.0903, 66.0904, 103.50, 196.3745 (5) (a) 1., or 229.8275 or 40 USC 3142.

AB755-ASA1, s. 7 Section 7. 106.06 of the statutes is created to read:

AB755-ASA1,3,21 106.06 Apprenticeship training grants. From the appropriation under s. 20.445 (1) (jg), the department shall make grants to support apprenticeship training programs that contractors and subcontractors are required to sponsor under s. 196.3745 (5) (a) 3. The purpose of the grants shall be to prepare individuals to participate in the apprenticeship training programs. The department shall promulgate rules establishing requirements and procedures for the grants.

AB755-ASA1, s. 8 Section 8 . 109.09 (1) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755-ASA1,4,19 109.09 (1) The department shall investigate and attempt equitably to adjust controversies between employers and employees as to alleged wage claims. The department may receive and investigate any wage claim which is filed with the department, or received by the department under s. 109.10 (4), no later than 2 years after the date the wages are due. The department may, after receiving a wage claim, investigate any wages due from the employer against whom the claim is filed to any employee during the period commencing 2 years before the date the claim is filed. The department shall enforce this chapter and ss. 66.0903, 66.0904, 103.02, 103.49, 103.82, 104.12, 196.3745 (5) (a) 1., and 229.8275. In pursuance of this duty, the department may sue the employer on behalf of the employee to collect any wage claim or wage deficiency and ss. 109.03 (6) and 109.11 (2) and (3) shall apply to such actions. Except for actions under s. 109.10, the department may refer such an action to the district attorney of the county in which the violation occurs for prosecution and collection and the district attorney shall commence an action in the circuit court having appropriate jurisdiction. Any number of wage claims or wage deficiencies against the same employer may be joined in a single proceeding, but the court may order separate trials or hearings. In actions that are referred to a district attorney under this subsection, any taxable costs recovered by the district attorney shall be paid into the general fund of the county in which the violation occurs and used by that county to meet its financial responsibility under s. 978.13 (2) (b) for the operation of the office of the district attorney who prosecuted the action.

AB755-ASA1, s. 9 Section 9 . 111.322 (2m) (c) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755-ASA1,4,25 111.322 (2m) (c) The individual files a complaint or attempts to enforce a right under s. 66.0903, 66.0904, 103.49, 196.3745 (5) (a) 1., or 229.8275 or testifies or assists in any action or proceeding under s. 66.0903, 66.0904, 103.49, 196.3745 (5) (a) 1., or 229.8275.

AB755-ASA1, s. 10 Section 10. 196.374 (2) (a) 1. of the statutes is amended to read:

AB755-ASA1,5,9 196.374 (2) (a) 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 develop and administer the programs. The utilities may not execute a contract under this subdivision unless the commission has approved the contract. The Except as provided in sub. (3) (b) 3m., 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.

AB755-ASA1, s. 11 Section 11. 196.374 (2) (d) of the statutes is created to read:

AB755-ASA1,5,21 196.374 (2) (d) Contractors. The commission shall prohibit, by order or rule, the performance of any work on installing or making an energy efficiency improvement, as defined in s. 196.3745 (1) (b), or renewable resource application, as defined in s. 196.3745 (1) (f), under a contract under a program under par. (a) 1., (b) 1. or 2., or (c) by a contractor or subcontractor who is not included in the list specified in s. 196.3745 (5) (a), except that the commission's order or rule shall allow the performance of such work by a contractor or subcontractor who does not satisfy the requirement under s. 196.3745 (5) (a) 3. if no contractor or subcontractor who satisfies the requirement is available to perform the work. This paragraph applies to contracts that are entered into, extended, modified, or renewed on the effective date of the commission's order or rule.

AB755-ASA1, s. 12 Section 12. 196.374 (3) (b) 2. (intro.) of the statutes is amended to read:

AB755-ASA1,6,8 196.374 (3) (b) 2. (intro.) The Except as provided in subd. 3m., 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, the utility's share of the statewide energy efficiency and renewable resource programs under sub. (2) (a) 1., and the utility's share, as determined by the commission under sub. (3) (b) 4., of the costs incurred by the commission in administering this section. Subject to approval under subd. 3., and except as provided in subd. 3m., the commission may require each energy utility to spend a larger percentage of its annual operating revenues to fund these programs and costs. The commission may make such a requirement based on the commission's consideration of all of the following:

AB755-ASA1, s. 13 Section 13. 196.374 (3) (b) 3. of the statutes is amended to read:

AB755-ASA1,6,24 196.374 (3) (b) 3. The commission shall submit to the joint committee on finance any proposal to require each energy utility to spend a larger percentage of its annual operating revenues than the percentage specified in subd. 2. (intro.) to fund the programs specified in subd. 2. (intro.). If the cochairpersons of the committee do not notify the commission within 10 working days after the commission submits such a proposal that the committee has scheduled a meeting to review the proposal, the commission may require each energy utility to spend the percentage specified in the proposal. If, within 10 working days after the commission submits a proposal, the cochairpersons of the committee notify the commission that the committee has scheduled a meeting to review the proposal, but, within 90 days of providing the notice, the committee does not object to the proposal, the commission may require each energy utility to spend the percentage specified in the proposal. If, within 90 days after providing the notice, the committee objects to the proposal, the commission may not require each energy utility to spend the percentage specified in the proposal.

AB755-ASA1, s. 14 Section 14. 196.374 (3) (b) 3m. of the statutes is created to read:

AB755-ASA1,7,4 196.374 (3) (b) 3m. The commission shall require each energy utility to pay to the department of workforce development 10 percent of the percentage of its annual operating revenues that the commission requires the energy utility to spend under subd. 2. (intro.).

AB755-ASA1, s. 15 Section 15. 196.374 (4) (b) of the statutes is amended to read:

AB755-ASA1,7,13 196.374 (4) (b) An energy utility that provides financing under an energy efficiency program under sub. (2) (b) 1. or 2. for installation, by a customer, of energy efficiency or renewable resource processes, equipment, or appliances, or an affiliate of such a utility, may not sell to or install for the customer those processes, equipment, appliances, or related materials. The Subject to any order or rule of the commission under sub. (2) (d), the customer shall acquire the installation of the processes, equipment, appliances, or related materials from an independent contractor of the customer's choice.

AB755-ASA1, s. 16 Section 16. 196.3745 of the statutes is created to read:

AB755-ASA1,7,16 196.3745 Energy and water efficiency and renewable energy investment program. (1) Definitions. In this section:

AB755-ASA1,7,20 (ag) "Administrative services" means, with respect to a utility, internal program administrative activities of the utility and does not include project, construction, or program management services or installations related to improvements or applications.

AB755-ASA1,7,23 (ar) "Cultural competency" means the ability to understand and act respectfully toward, in a cultural context, the beliefs, interpersonal styles, attitudes, and behaviors of persons of various cultures.

AB755-ASA1,8,3 (b) "Energy efficiency improvement" means an improvement to any type of premises that reduces the usage of energy, or increases the efficiency of energy usage, at the premises.

AB755-ASA1,8,5 (c) "Improvement or application" means an energy or water efficiency improvement or renewable resource application.

AB755-ASA1,8,6 (d) "Political subdivision" means a city, village, town, or county.

AB755-ASA1,8,8 (e) "Political subdivision loan" means a loan or agreement under s. 66.0627 (8) regarding an improvement or application.

AB755-ASA1,8,10 (f) "Renewable resource application" means the application of a renewable resource, as defined in s. 196.374 (1) (j), at any type of premises.

AB755-ASA1,8,12 (g) "Utility" means a public utility that furnishes electricity, natural gas, or water service to retail customers.

AB755-ASA1,8,13 (h) "Utility program" means a program authorized under sub. (2).

AB755-ASA1,8,16 (i) "Water efficiency improvement" means an improvement to any type of premises that reduces the usage of water, or increases the efficiency of water usage, at the premises.

AB755-ASA1,8,23 (2) Authorization. The commission may, upon application by a utility, authorize the utility to administer, fund, or provide administrative services for a program for investing in improvements or applications for any type of premises served by the utility if the commission finds that the program is cost-effective. Participation in such a program shall be at the discretion of utilities and premises owners, and the commission may not require that a utility or premises owner participate in such a program.

AB755-ASA1,9,3 (3) Tariffs. A utility for which a program is authorized under sub. (2) shall file a tariff specifying the terms and conditions for making or installing improvements or applications at customer premises under the program. A tariff filed under this subsection shall have no effect until approved by the commission. A tariff filed by a utility under this subsection shall include all of the following:

AB755-ASA1,9,8 (a) Terms and conditions for billing customers at premises for costs incurred at the premises in making or installing improvements or applications for which investments are made. The tariff shall allow the utility to collect, and enforce payment of, the amounts billed in the same manner as amounts billed for utility service.

AB755-ASA1,9,12 (b) A contract between the utility and an owner of property benefited by an improvement or application that requires the owner to inform any property lessees who are liable for utility service that the cost of the improvement or application will appear on the lessees' utility bills.

AB755-ASA1,9,17 (c) A contract between the utility and an owner of property benefited by an improvement or application that requires the owner to inform any purchaser of the property that the purchaser, or any other person who is liable for utility service at the property, is liable for the unpaid cost of the improvement or application and that such unpaid cost will appear on utility bills for the property.

AB755-ASA1,9,18 (d) Any other term or condition required by the commission.

AB755-ASA1,9,19 (4) Costs and savings. (a) Definitions. In this subsection:

AB755-ASA1,9,21 1. "Performance contract" means a contract for the evaluation and recommendation of an improvement or application.

AB755-ASA1,9,25 2. "Qualified provider" means a person who is experienced in the design, implementation, and installation of improvements or applications and who has the ability to provide labor and material payment and performance bonds equal to the maximum amount of any payments due under a performance contract entered into by the person.

AB755-ASA1,10,5 (b) In general. A premises is not eligible for a political subdivision loan or an investment for an improvement or application under a utility program unless one of the following is satisfied:

AB755-ASA1,10,7 1. An audit is performed that demonstrates that the improvement or application is cost-effective with respect to the normal operation of the premises.

AB755-ASA1,10,10 2. As determined under criteria under par. (d), the water or energy savings resulting over the expected life of the improvement or application exceed the costs of the improvement or application.

AB755-ASA1,10,12 3. The improvement or application is subject to a performance contract under par. (e).

AB755-ASA1,10,22 (c) Audits. 1. For a political subdivision loan, the political subdivision shall determine whether an audit under par. (b) 1. demonstrates that an improvement or application is cost-effective. A political subdivision shall determine that an improvement or application is cost-effective if the energy or water savings resulting over the expected life of the improvement or application exceed the costs of the political subdivision loan. After an improvement or application is made or installed, a political subdivision shall require the performance of an additional audit to verify that the improvement or application was made or installed. The commission may not promulgate rules regarding any audit preformed for or required by a political subdivision.

AB755-ASA1,11,9 2. The commission shall promulgate rules for determining whether an audit under par. (b) 1. demonstrates that an improvement or application under a utility program is cost-effective. For an improvement, the rules shall specify criteria that include the energy or water savings resulting from the improvement and a period of time not exceeding 10 years that is required for the energy or water savings to equal the cost of the improvement. For an improvement or application, the rules may specify criteria that include comparing the cost of the improvement or application to the value of the premises benefited by the improvement or application. The commission shall also promulgate rules requiring the performance of an additional audit to verify that the improvement or application was installed or made and rules specifying the certification requirements a person must satisfy to perform any audit required for an improvement or application under a utility program.

AB755-ASA1,11,15 (d) Criteria. For a political subdivision loan, the political subdivision shall specify criteria for making a determination under par. (b) 2. For a utility program, the commission shall promulgate rules specifying criteria for making a determination under par. (b) 2. A political subdivision and the commission shall specify similar criteria for similar types of premises, improvements, and applications.

AB755-ASA1,12,3 (e) Performance contracts. 1. An improvement or application may be subject to a performance contract if a report is obtained from a qualified provider containing recommendations concerning the amount that should be spent on the improvement or application. The report shall contain estimates of all costs of installation, modifications, or remodeling, including costs of design, engineering, maintenance, repairs, and financing. In addition, the report shall contain a guarantee specifying a minimum amount by which water, energy, or operating costs for the premises will be reduced, if the installation, modification, or remodeling is performed by that qualified provider. If, after review of the report, it is determined that the recommended spending is not likely to exceed the amount to be saved in water, energy, and operation costs over the remaining useful life of the improvement or application, the improvement or application may be subject to a performance contract.

AB755-ASA1,12,8 2. For a political subdivision loan, a political subdivision shall establish requirements and procedures for reports and performance contracts under subd. 1. The commission shall promulgate rules establishing requirements and procedures for reports and performance contracts under subd. 1. for improvements or applications under utility programs.

AB755-ASA1,12,15 (5) Contractors and subcontractors. (a) All work involved in making or installing an improvement or application under a utility program or pursuant to a political subdivision loan shall be performed by a contractor or subcontractor that the commission has included on a list of prequalified contractors and subcontractors. The commission shall approve a contractor or subcontractor for inclusion on the prequalification list only if the commission determines that the contractor or subcontractor satisfies all of the following:

AB755-ASA1,13,4 1. Agrees to pay all employees working on an improvement or application for which an investment is made under the program, or for which the political subdivision loan is made, who would be entitled to receive the prevailing wage rate under s. 66.0903 and who would not be required or permitted to work more than the prevailing hours of labor, as defined in s. 103.49 (1) (c), if the improvement or application were a project of public works under s. 66.0903, not less than the prevailing wage rate determined under s. 66.0903 (3) or (6) and not to require or permit those employees to work more than the prevailing hours of labor, except as permitted under s. 66.0903 (4) (a); to keep and permit inspection of records in the same manner as a contractor performing work on a project of public works that is subject to s. 66.0903 is required to keep and permit inspection of records under s. 66.0903 (10); and otherwise to comply with s. 66.0903 in the same manner as a contractor performing work on a project of public works that is subject to s. 66.0903 is required to comply with s. 66.0903.

AB755-ASA1,13,15 2. Agrees not to permit an employee working on an improvement or application for which an investment is made under the program or for which the political subdivision loan is made to use, possess, attempt to possess, distribute, deliver, or be under the influence of a drug, as defined in s. 103.503 (1) (d), or use or be under the influence of alcohol, while performing that work, to have in place a written program for the prevention of substance abuse among those employees in the same manner as a contractor performing work on a project of public works that is subject to s. 66.0903 is required to have in place such a written program under s. 103.503 (3), and otherwise to comply with s. 103.503 in the same manner as a contractor performing work on a project of public works that is subject to s. 66.0903 is required to comply with s. 103.503.