SB459-engrossed,15,106 20.505 (3) (s) Energy conservation and efficiency and renewable resource grants
7Transfer to air quality improvement fund. From the utility public benefits fund, a
8sum sufficient for energy conservation and efficiency and renewable resource grants
9under s. 16.957 (2) (b) 1. and
to make the transfer to the air quality improvement fund
10under s. 16.958 (2) (a).
SB459-engrossed, s. 47 11Section 47. 20.924 (1) (j) of the statutes is created to read:
SB459-engrossed,15,1812 20.924 (1) (j) Shall not enter into any lease or other contract that provides for
13the construction of any building, structure, or facility, or portion thereof, for initial
14occupancy by the state and that contains an option for the state to purchase the
15building, structure, or facility unless the seller or lessor agrees that all equipment
16to be installed as a component of the building, structure, or facility that relates to any
17function that consumes energy meets applicable requirements for state building
18projects under s. 16.855 (10s) (a).
SB459-engrossed, s. 48 19Section 48. 25.96 of the statutes is amended to read:
SB459-engrossed,15,24 2025.96 Utility public benefits fund. There is established a separate
21nonlapsible trust fund designated as the utility public benefits fund, consisting of
22deposits by the public service commission under s. 196.374 (3), public benefits
23low-income assistance
fees received under s. 16.957 (4) (a) and (5) (c) and (d) and
24contributions received under s. 16.957 (2) (c) 4. and (d) 2.
(b) 2.
SB459-engrossed, s. 49 25Section 49. 76.28 (1) (d) of the statutes is amended to read:
SB459-engrossed,17,11
176.28 (1) (d) "Gross revenues" for a light, heat and power company other than
2a qualified wholesale electric company or a transmission company means total
3environmental control charges paid to the company under a financing order issued
4under s. 196.027 (2) and total operating revenues as reported to the public service
5commission except revenues for interdepartmental sales and for interdepartmental
6rents as reported to the public service commission and deductions from the sales and
7use tax under s. 77.61 (4), except that the company may subtract from revenues
8either the actual cost of power purchased for resale, as reported to the public service
9commission, by a light, heat and power company, except a municipal light, heat and
10power company, that purchases under federal or state approved wholesale rates
11more than 50% of its electric power from a person other than an affiliated interest,
12as defined in s. 196.52 (1), if the revenue from that purchased electric power is
13included in the seller's gross revenues or the following percentages of the actual cost
14of power purchased for resale, as reported to the public service commission, by a
15light, heat and power company, except a municipal light, heat and power company
16that purchases more than 90% of its power and that has less than $50,000,000 of
17gross revenues: 10% for the fee assessed on May 1, 1988, 30% for the fee assessed on
18May 1, 1989, and 50% for the fee assessed on May 1, 1990, and thereafter. For a
19qualified wholesale electric company, "gross revenues" means total business
20revenues from those businesses included under par. (e) 1. to 4. For a transmission
21company, "gross revenues" means total operating revenues as reported to the public
22service commission, except revenues for transmission service that is provided to a
23public utility that is subject to the license fee under sub. (2) (d), to a public utility, as
24defined in s. 196.01 (5), or to a cooperative association organized under ch. 185 for
25the purpose of providing electricity to its members only. For an electric utility, as

1defined in s. 16.957 (1) (g), "gross revenues" does not include public benefits
2low-income assistance fees collected by the electric utility under s. 16.957 (4) (a) or
3(5) (a). For a generator public utility, "gross revenues" does not include any grants
4awarded to the generator public utility under s. 16.958 (2) (b). For a wholesale
5supplier, as defined in s. 16.957 (1) (w), "gross revenues" does not include any public
6benefits
low-income assistance fees that are received from a municipal utility or
7retail electric cooperative or under a joint program established under s. 16.957 (5)
8(f). For a municipal utility, "gross revenues" does not include public benefits
9low-income assistance fees received by the municipal utility from a municipal utility
10or retail electric cooperative under a joint program established under s. 16.957 (5)
11(f).
SB459-engrossed, s. 50 12Section 50. 76.48 (1g) (d) of the statutes is amended to read:
SB459-engrossed,18,513 76.48 (1g) (d) "Gross revenues" means total operating revenues, except
14revenues for interdepartmental sales and for interdepartmental rents, less
15deductions from the sales and use tax under s. 77.61 (4) and, in respect to any electric
16cooperative that purchases more than 50% of the power it sells, less the actual cost
17of power purchased for resale by an electric cooperative, if the revenue from that
18purchased electric power is included in the seller's gross revenues or if the electric
19cooperative purchased more than 50% of the power it sold in the year prior to
20January 1, 1988, from a seller located outside this state. For an electric cooperative,
21"gross revenues" does not include grants awarded to the electric cooperative under
22s. 16.958 (2) (b). For a retail electric cooperative, "gross revenues" does not include
23public benefits low-income assistance fees collected by the retail electric cooperative
24under s. 16.957 (5) (a), public benefits low-income assistance fees received by the
25retail electric cooperative from a retail electric cooperative or municipal utility under

1a joint program established under s. 16.957 (5) (f). For a wholesale supplier, as
2defined in s. 16.957 (1) (w), "gross revenues" does not include any public benefits
3low-income assistance fees that are received from a municipal utility, as defined in
4s. 16.957 (1) (q), or retail electric cooperative or under a joint program established
5under s. 16.957 (5) (f).
SB459-engrossed, s. 51 6Section 51. 77.54 (44) of the statutes is amended to read:
SB459-engrossed,18,87 77.54 (44) The gross receipts from the collection of public benefits low-income
8assistance
fees that are charged under s. 16.957 (4) (a) or (5) (a).
SB459-engrossed, s. 52 9Section 52. 79.005 (4) (d) of the statutes is amended to read:
SB459-engrossed,18,1310 79.005 (4) (d) Replacing steam generating equipment at a combustion-based
11renewable facility, as defined in s. 196.378 (1) (g), that is located in this state, to
12increase efficiency or capacity, if the facility remains a combustion-based renewable
13facility, as defined in s. 196.378 (1) (g), after replacing the equipment.
SB459-engrossed, s. 53 14Section 53. 101.027 (1) (intro.) and (a) of the statutes are consolidated,
15renumbered 101.027 (1) and amended to read:
SB459-engrossed,18,1916 101.027 (1) In this section: (a) "Energy, "energy conservation code" means the
17energy conservation code promulgated by the department that sets design
18requirements for construction and equipment for the purpose of energy conservation
19in public buildings and places of employment.
SB459-engrossed, s. 54 20Section 54. 101.027 (1) (b) of the statutes is repealed.
SB459-engrossed, s. 55 21Section 55. 101.027 (2) of the statutes is amended to read:
SB459-engrossed,19,1222 101.027 (2) The department shall review the energy conservation code and
23shall promulgate rules that change the requirements of the energy conservation code
24to improve energy conservation. No rule may be promulgated that has not taken into
25account the cost of the energy conservation code requirement, as changed by the rule,

1in relationship to the benefits derived from that requirement, including the
2reasonably foreseeable economic and environmental benefits to the state from any
3reduction in the use of imported fossil fuel. The proposed rules changing the energy
4conservation code shall be submitted to the legislature in the manner provided under
5s. 227.19. In conducting a review under this subsection, the department shall
6consider incorporating, into the energy conservation code, design requirements from
7the most current national energy efficiency design standards, including standard
890.1 - 1989
the International Energy Conservation Code or an energy efficiency code
9other than standard 90.1 - 1989 the International Energy Conservation Code if that
10energy efficiency code is used to prescribe design requirements for the purpose of
11conserving energy in buildings and is generally accepted and used by engineers and
12the construction industry.
SB459-engrossed, s. 56 13Section 56. 101.027 (3) (a) 1. of the statutes is amended to read:
SB459-engrossed,19,1514 101.027 (3) (a) 1. A revision of standard 90.1 - 1989 the International Energy
15Conservation Code
is published.
SB459-engrossed, s. 57 16Section 57. 101.027 (3) (a) 2. of the statutes is amended to read:
SB459-engrossed,19,1917 101.027 (3) (a) 2. Five Three years have passed from the date on which the
18department last submitted to the legislature proposed rules changing the energy
19conservation code.
SB459-engrossed, s. 58 20Section 58. 101.027 (3) (b) 1. of the statutes is amended to read:
SB459-engrossed,20,221 101.027 (3) (b) 1. If the department begins a review under sub. (2) because a
22revision of standard 90.1 - 1989 the International Energy Conservation Code is
23published, the department shall complete its review of the energy conservation code,
24as defined in sub. (1),
and submit to the legislature proposed rules changing the
25energy conservation code, as defined in sub. (1), no later than 18 months after the

1date on which the revision of standard 90.1 - 1989 the International Energy
2Conservation Code
is published.
SB459-engrossed, s. 59 3Section 59. 101.027 (3) (b) 2. of the statutes is amended to read:
SB459-engrossed,20,94 101.027 (3) (b) 2. If the department begins a review under sub. (2) because 5
53 years have passed from the date on which the department last submitted to the
6legislature proposed rules changing the energy conservation code, the department
7shall complete its review of the energy conservation code and submit to the
8legislature proposed rules changing the energy conservation code no later than 9
9months after the last day of the 5-year 3-year period.
SB459-engrossed, s. 60 10Section 60. 196.025 (1) (title) of the statutes is created to read:
SB459-engrossed,20,1111 196.025 (1) (title) State energy policy.
SB459-engrossed, s. 61 12Section 61. 196.025 (1) of the statutes is renumbered 196.025 (1) (ar) and
13amended to read:
SB459-engrossed,20,1814 196.025 (1) (ar) Consideration of energy priorities. To Except as provided in
15pars. (b) to (d), to
the extent cost-effective, technically feasible and environmentally
16sound, the commission shall implement the priorities under s. 1.12 (4) in making all
17energy-related decisions and orders, including advance plan strategic energy
18assessment
, rate setting and rule-making orders.
SB459-engrossed, s. 61m 19Section 61m. 196.025 (1) (ag) of the statutes is created to read:
SB459-engrossed,20,2020 196.025 (1) (ag) Definitions. In this subsection:
SB459-engrossed,20,2121 1. "Renewable resource" has the meaning given in s. 196.374 (1) (j).
SB459-engrossed,20,2222 2. "Wholesale supplier" has the meaning given in s. 16.957 (1) (w).
SB459-engrossed, s. 62 23Section 62. 196.025 (1) (b) to (d) of the statutes are created to read:
SB459-engrossed,21,524 196.025 (1) (b) Energy conservation and efficiency. 1. In a proceeding in which
25an investor-owned electric public utility is a party, the commission shall not order

1or otherwise impose energy conservation or efficiency requirements on the
2investor-owned electric public utility if the commission has fulfilled all of its duties
3under s. 196.374 and the investor-owned electric public utility has satisfied the
4requirements of s. 196.374 for the year prior to commencement of the proceeding, as
5specified in s. 196.374 (8).
SB459-engrossed,21,106 2. In a proceeding in which a wholesale supplier is a party, the commission shall
7not order or otherwise impose energy conservation or efficiency requirements on the
8wholesale supplier if the commission has fulfilled all of its duties under s. 196.374
9and the wholesale supplier's members are in the aggregate substantially in
10compliance with s. 196.374 (7).
SB459-engrossed,21,1711 (c) Renewable resources. 1. In a proceeding in which an investor-owned electric
12public utility is a party, the commission shall not order or otherwise impose any
13renewable resource requirements on the investor-owned electric public utility if the
14commission has fulfilled all of its duties under s. 196.378 and the commission has
15informed the utility under s. 196.378 (2) (c) that, with respect to the most recent
16report submitted under s. 196.378 (2) (c), the utility is in compliance with the
17requirements of s. 196.378 (2) (a) 2.
SB459-engrossed,21,2218 2. In a proceeding in which a wholesale supplier is a party, the commission shall
19not order or otherwise impose any renewable resource requirements on the
20wholesale supplier if the commission has fulfilled all of its duties under s. 196.378
21and the wholesale supplier's members are in the aggregate substantially in
22compliance with s. 196.378 (2).
SB459-engrossed,22,223 (d) Transmission facilities. In a proceeding regarding a request by a public
24utility or wholesale supplier to acquire, construct, install, or operate an electric

1transmission facility or associated equipment, the commission shall not order or
2otherwise impose requirements on the public utility or wholesale supplier.
SB459-engrossed, s. 63 3Section 63. 196.025 (1m) (title) of the statutes is created to read:
SB459-engrossed,22,44 196.025 (1m) (title) Transmission corridors.
SB459-engrossed, s. 64 5Section 64. 196.025 (2) (title) of the statutes is created to read:
SB459-engrossed,22,66 196.025 (2) (title) Environmental impacts.
SB459-engrossed, s. 65 7Section 65. 196.025 (2m) (title) of the statutes is created to read:
SB459-engrossed,22,88 196.025 (2m) (title) Coordination with department of natural resources.
SB459-engrossed, s. 66 9Section 66. 196.025 (3) (title) of the statutes is created to read:
SB459-engrossed,22,1010 196.025 (3) (title) Reliability reports.
SB459-engrossed, s. 67 11Section 67. 196.025 (4) (title) of the statutes is created to read:
SB459-engrossed,22,1212 196.025 (4) (title) Small-scale generation incentives.
SB459-engrossed, s. 68 13Section 68. 196.025 (5) (title) of the statutes is created to read:
SB459-engrossed,22,1414 196.025 (5) (title) Market power study.
SB459-engrossed, s. 69 15Section 69. 196.374 of the statutes is repealed and recreated to read:
SB459-engrossed,22,17 16196.374 Energy efficiency and renewable resource programs. (1)
17Definitions. In this section:
SB459-engrossed,22,1918 (a) "Agricultural producer" means a person engaged in an agricultural activity,
19as defined in s. 101.10 (1) (a).
SB459-engrossed,22,2220 (b) "Commitment to community program" means an energy efficiency or load
21management program by or on behalf of a municipal utility or retail electric
22cooperative.
SB459-engrossed,22,2523 (c) "Customer application of renewable resources" means the generation of
24energy from renewable resources that takes place on the premises of a customer of
25an energy utility or municipal utility or a member of a retail electric cooperative.
SB459-engrossed,23,4
1(d) "Energy efficiency program" means a program for reducing the usage or
2increasing the efficiency of the usage of energy by a customer or member of an energy
3utility, municipal utility, or retail electric cooperative. "Energy efficiency program"
4does not include load management.
SB459-engrossed,23,65 (e) "Energy utility" means an investor-owned electric or natural gas public
6utility.
SB459-engrossed,23,127 (em) "Large energy customer" means a customer of an energy utility that owns
8or operates a facility in the energy utility's service area that has an energy demand
9of at least 1,000 kilowatts of electricity per month or of at least 10,000 decatherms
10of natural gas per month and that, in a month, is billed at least $60,000 for electric
11service, natural gas service, or both, for all of the facilities of the customer within the
12energy utility's service territory.
SB459-engrossed,23,1713 (f) "Load management program" means a program to allow an energy utility,
14municipal utility, wholesale electric cooperative, as defined in s. 16.957 (1) (v), retail
15electric cooperative, or municipal electric company, as defined in s. 66.0825 (3) (d),
16to control or manage daily or seasonal customer demand associated with equipment
17or devices used by customers or members.
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.
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