AB941: Bill Text

LRB-4552/2

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1997 - 1998 LEGISLATURE

1997 Assembly BILL 941

March 20, 1998 - Introduced by Representatives Riley, Hanson, Musser, Turner, Olsen, Springer, Underheim, Murat, Porter, Cullen, Notestein, Spillner, Gronemus, Plouff, L. Young, Bock, Boyle, Carpenter, R. Young, Baldwin, Johnsrud, Otte, R. Potter and Plale, cosponsored by Senators Shibilski, George, Wirch, Plache, C. Potter and Grobschmidt. Referred to Joint committee on Finance.

AB941,1,7 An Act to amend 168.01 (2), 168.12 (1g), 168.12 (1r), 168.12 (5), 168.12 (8) (a), (c) and (d), 168.12 (9), 168.125, 168.13, 168.15, 168.17 and 196.374 (2); and to create 15.105 (27), 16.006, 16.395, 20.505 (4) (t), 25.17 (1) (jx), 25.96, 168.01 (1m), 168.12 (1c) and 196.378 of the statutes; relating to: creating a low-income energy board, requiring contributions to a low-income energy fund, imposing a heating oil fee, granting rule-making authority and making an appropriation.

Analysis by the Legislative Reference Bureau

Under current law, the department of administration (DOA) administers a low-income energy assistance program (LIEAP) and a low-income weatherization program (LIWP), funded with federal grants, to assist households with incomes of not more than 150% of the poverty line (low-income households).

This bill creates a low-income energy board (board) that is attached to DOA. The board must monitor the effectiveness of LIEAP and LIWP and establish and administer, through the bureau of weatherization in DOA's division of housing, programs to provide assistance to low-income households for early identification and prevention of energy crises, furnace and boiler replacement or repair, payment of home heating costs, weatherization and energy conservation. The board must also assess biennially the needs of low-income households, recommend additional energy programs to meet the needs of low-income households and submit an annual report to the governor and the legislature that includes an evaluation of the effectiveness of the board's programs and the board's recommendations.

The bill also creates a low-income energy fund (fund) to fund the board and its programs. Contributions to the fund consist of a heating oil fee and a contribution from electric and gas public utilities and cooperative associations (electric or gas providers). The heating oil fee is assessed by the department of commerce on heating oil and propane that is received for sale in the state or for sale for export to this state. The department of commerce must set the heating oil fee at a rate sufficient to generate in each fiscal year an amount equal to 17% of the difference between $105,000,0000 and the federal moneys received for LIEAP and LIWP. The public service commission must designate a method for calculating and collecting the contributions from electric and gas providers. The method must ensure each of the following:

1. That the contributions collected from electric and gas providers in a fiscal year are equal to 83% of the difference between $105,000,000 and the funds received under federal low-income energy assistance and weatherization programs.

2. That electric public utilities and cooperative associations are responsible for making half of the contributions and gas public utilities and cooperative associations are responsible for the other half.

3. That the amount that an electric or gas provider is required to contribute is based on the total number of the provider's end users, which the bill defines as the ultimate users of electricity or gas provided by an electric or gas provider.

In addition, the bill requires an electric or gas provider to charge an access fee to its end users for the purpose of recovering the entire amount of its contribution in a fiscal year. An electric or gas provider may recover no more than 80% of its contribution from residential end users and no more than 20% from nonresidential end users. The access fee must be uniform within each class of end users and may not be based on the volume of gas or electricity that an end user uses. Finally, the bill prohibits an electric or gas provider from stating an access fee surcharge on the bill of an end user.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

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

AB941, s. 1 Section 1. 15.105 (27) of the statutes is created to read:

AB941,2,2 15.105 (27) Low-income energy board. (a) In this subsection:

AB941,2,3 1. "Electric or gas provider" has the meaning given in s. 196.378 (1) (a).

AB941,2,4 1m. "End user" has the meaning given in s. 196.378 (1) (b).

AB941,3,1 2. "Low-income household" has the meaning given in s. 16.006 (1) (b).

AB941,3,4 (b) There is created a low-income energy board that is attached to the department of administration under s. 15.03. The board shall consist of the following members appointed for 3-year terms:

AB941,3,7 1. Four residential end users of electric or gas providers. At least 2 of the members appointed under this subdivision shall be members of low-income households or organizations that represent the interests of low-income households.

AB941,3,8 2. Two nonresidential end users of electric or gas providers.

AB941,3,11 3. Five representatives, directors or officers of electric or gas providers or retailers or wholesalers of electric or gas service who are not public utilities, as defined in s. 196.01 (5).

AB941, s. 2 Section 2. 16.006 of the statutes is created to read:

AB941,3,13 16.006 Low-income energy board. (1) In this section:

AB941,3,14 (a) "Board" means the low-income energy board.

AB941,3,19 (b) "Low-income household" means any individual or group of individuals who are living together as one economic unit for whom residential energy is customarily purchased in common or who make undesignated payments for energy in the form of rent and whose household income is not more than 150% of the poverty line as determined under 42 USC 9902 (2).

AB941,3,25 (c) "Total funding" means the sum of all moneys received under 42 USC 8621 to 8629 and 42 USC 6861 to 6873 in a fiscal year, contributions specified in s. 196.378 (2) that are collected in that fiscal year, assessments paid under the rules promulgated under s. 196.378 (4m) (a) in that fiscal year and fees specified in s. 168.12 (1c) that are collected in that fiscal year, less the amount used for the board's administrative expenses under sub. (3).

AB941,4,1 (2) The board shall do all of the following:

AB941,4,2 (a) Monitor the effectiveness of the programs under ss. 16.385 and 16.39.

AB941,4,5 (b) In consultation with the advisory body required under 42 USC 6864 (b) (1), establish programs to be administered by the division of housing to provide assistance to low-income households for all of the following:

AB941,4,6 1. Early identification and prevention of energy crises.

AB941,4,7 2. Furnace or boiler replacement or repair.

AB941,4,8 3. Heating assistance, as defined in s. 16.385 (1) (bm).

AB941,4,9 4. Weatherization and energy conservation.

AB941,4,11 (c) In establishing and administering the programs under par. (b), the board shall ensure, in each fiscal year, all of the following:

AB941,4,15 1. That the programs specified in par. (b) 1., 2. and 3. receive from the appropriation under s. 20.505 (4) (t) an amount necessary to ensure that at least 52% of the total funding is used for the programs specified in par. (b) 1., 2. and 3. and s. 16.385.

AB941,4,18 2. That the program specified in par. (b) 4. receives from the appropriation under s. 20.505 (4) (t) an amount necessary to ensure that at least 47% of the total funding is used for the programs specified in par. (b) 4. and s. 16.39.

AB941,4,20 (d) Biennially, determine the amount of resources and types of programs necessary to meet the energy needs of low-income households.

AB941,5,2 (e) In consultation with the advisory body required under 42 USC 6864 (b) (1) and based on a determination under par. (d), recommend additional energy programs and, if necessary, additional funding sources and amounts, that are required to meet the needs of low-income households. The board shall also recommend, based on a determination under par. (d), whether any adjustments to the percentages of total funding specified in par. (c) 1. and 2. are required to meet the needs of low-income households.

AB941,5,7 (f) Annually, on or before May 1, submit to the governor, and to the chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2), a report that evaluates the effectiveness of the programs under pars. (a) and (b) and that includes the results of the determination under par. (d) and the recommendations under par. (e).

AB941,5,14 (3) Notwithstanding sub. (2) (b), the board may contract with a community action agency described in s. 46.30 (2) (a) 1., a nonstock, nonprofit corporation organized under ch. 181, a county or a city to administer the programs specified in sub. (2) (b). In each fiscal year, the board may not encumber funds from the appropriation under s. 20.505 (4) (t) for administrative expenses if the amounts encumbered in that fiscal year for administrative expenses exceed 5% of the total expenditures from the appropriation for the fiscal year.

AB941,5,15 (4) The board shall promulgate rules to implement and administer this section.

AB941, s. 3 Section 3. 16.395 of the statutes is created to read:

AB941,5,19 16.395 Low-income energy board programs. Except for programs that are subject to a contract under s. 16.006 (3), the division of housing shall administer the programs under s. 16.006 (2) (b).

AB941, s. 4 Section 4. 20.505 (4) (t) of the statutes is created to read:

AB941,5,23 20.505 (4) (t) Low-income energy fund. From the low-income energy fund, a sum sufficient for the administrative expenses of the low-income energy board and for the establishment and administration of the programs under s. 16.006 (2) (b).