AB649: Bill Text

AB649, s. 92 Section 92. 196.374 (1) (o) of the statutes is repealed.

AB649, s. 93 Section 93. 196.374 (2) (a) 1. of the statutes is amended to read:

AB649,77,11 196.374 (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 collectively contract, on the basis of competitive bids, with one or more persons to develop and administer the statewide energy efficiency and renewable resource programs. The utilities may not execute a A contract under this subdivision may not be executed unless the commission has approved the contract. The commission shall require each energy utility to spend the amount required under sub. (3) (b) 2. moneys received by a statewide programs contractor under sub. (3) (bw) 3. and 4. shall be used to fund the statewide energy efficiency and renewable resource programs.

AB649, s. 94 Section 94. 196.374 (2) (a) 2. (intro.) of the statutes is amended to read:

AB649,77,18 196.374 (2) (a) 2. (intro.) The purpose of the statewide programs under this paragraph shall be to help achieve environmentally sound and adequate energy target fuel supplies at reasonable cost, consistent with the commission's responsibilities under s. 196.025 (1) (ar) and (e) and the energy utilities' obligations under this chapter. The statewide programs shall include, at a minimum, all of the following:

AB649, s. 95 Section 95. 196.374 (2) (a) 2. a. of the statutes is amended to read:

AB649,77,22 196.374 (2) (a) 2. a. Components to address the energy target fuel needs of residential, commercial, agricultural, institutional, and industrial energy target fuel users and local units of government.

AB649, s. 96 Section 96. 196.374 (2) (a) 2. b. of the statutes is amended to read:

AB649,78,10 196.374 (2) (a) 2. b. Components to reduce the energy target fuel costs incurred by local units of government and agricultural producers, by increasing the efficiency of energy target fuel 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. paid by energy utilities and prime suppliers under sub. (3) (bw) 3. and 4. 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 target fuel users. A local unit of government that receives assistance under this subd. 2. b. shall apply all costs savings realized from the assistance to reducing the property tax levy.

AB649, s. 97 Section 97. 196.374 (2) (a) 2. d. of the statutes is amended to read:

AB649,78,13 196.374 (2) (a) 2. d. Initiatives for research and development regarding the environmental and economic impacts of energy target fuel use in this state.

AB649, s. 98 Section 98. 196.374 (2) (a) 3. of the statutes is amended to read:

AB649,78,19 196.374 (2) (a) 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 statewide 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 or 196.379.

AB649, s. 99 Section 99. 196.374 (2) (b) (title) of the statutes is amended to read:

AB649,78,21 196.374 (2) (b) (title) Utility-administered and supplemental utility programs.

AB649, s. 100 Section 100. 196.374 (2) (b) 1. of the statutes is amended to read:

AB649,79,5 196.374 (2) (b) 1. An energy utility may, with commission approval, administer or fund one or more energy efficiency programs for regulated fuels that is limited to, as determined by the commission, large commercial, industrial, institutional, or agricultural customers in its service territory. An energy utility shall pay for a program under this subdivision with by withholding a portion of the amount it is required to pay to a statewide programs contractor under sub. (3) (b) 2. (bw) 3., as approved by the commission. The commission may not order an energy utility to administer or fund a program under this subdivision.

AB649, s. 101 Section 101. 196.374 (2) (b) 2. of the statutes is amended to read:

AB649,79,12 196.374 (2) (b) 2. An energy utility may, with commission approval, administer or fund an energy efficiency or renewable resource program for regulated fuels that is limited to customers in its service territory and that is in addition to the statewide programs required under par. (a) or utility-administered programs authorized under subd. 1. The commission may not order an energy utility to administer or fund a program under this subdivision.

AB649, s. 102 Section 102. 196.374 (2) (b) 3. of the statutes is amended to read:

AB649,79,21 196.374 (2) (b) 3. An energy utility that administers or funds a program under subd. 1. or 2. or an ordered program may request at any time to establish, modify, or discontinue a utility-administered or supplemental utility program, and the commission may approve, to modify, or discontinue, in whole or in part, the ordered program. An energy utility may request the establishment, modification, or discontinuation of a program under subd. 1. or 2. at any time and shall request the modification or discontinuation of an ordered program as part of a proceeding under sub. (3) (b) 1.

AB649, s. 103 Section 103. 196.374 (2) (c) of the statutes is amended to read:

AB649,80,9 196.374 (2) (c) Large energy customer programs. A customer of an energy utility may, with commission approval, administer and fund its own energy efficiency programs or renewable resource programs if the customer satisfies the definition of a large energy customer for any month in the 12 months preceding the date of the customer's request for approval. A customer may request commission approval at any time. A customer that funds a program under this paragraph may deduct the amount of the funding from the amount the energy utility may collect from the customer under sub. (5) (b). If the customer deducts the amount of the funding from the amount the energy utility may collect from the customer under sub. (5) (b), the energy utility shall credit the amount of the funding against the amount the energy utility is required to spend pay to a statewide programs contractor under sub. (3) (b) 2. (bw) 3.

AB649, s. 104 Section 104. 196.374 (3) (a) and (b) 1. of the statutes are consolidated, renumbered 196.374 (3) (a) and amended to read:

AB649,81,6 196.374 (3) (a) In general. The commission shall have oversight of statewide, utility-administered, supplemental utility, and large energy customer programs under sub. (2). The commission shall maximize coordination of program delivery, including coordination between such programs under subs. (2) (a) 1., (b) 1. and 2., and (c) and (7), ordered programs, low-income weatherization programs under s. ss. 16.26, 16.27, and 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. (b) 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 In carrying out its duties under this paragraph, the commission shall give priority to cost-effective programs that moderate the growth in electric and natural gas target fuel 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.

AB649, s. 105 Section 105. 196.374 (3) (b) (title) and 2. to 4. of the statutes are repealed.

AB649, s. 106 Section 106. 196.374 (3) (bc), (bg), (bn), (br) and (bw) of the statutes are created to read:

AB649,81,14 196.374 (3) (bc) Quadrennial proceedings; generally. Every 4 years, the commission shall, after notice and opportunity to be heard, conduct a proceeding for making assessments under par. (bg), establishing goals under par. (bn), establishing funding requirements under par. (br), and allocating the funding requirements under par. (bw).

AB649,81,18 (bg) Quadrennial potential studies. 1. The commission shall assess the reduction in the use of and demand for each target fuel that can be achieved in each year of the quadrennium following the proceeding under par. (bc) through all of the following:

AB649,81,20 a. Cost-effective energy efficiency and renewable resource programs administered by energy providers or other persons.

AB649,81,24 b. Programs and policy mechanisms under the commission's jurisdiction, excluding the programs described in subd. 1. a., and including demand response and load management programs, orders under s. 196.379 (3), and the renewable portfolio standard, as defined in s. 196.378 (1r) (gm).

AB649,81,25 c. Low-income weatherization programs under ss. 16.26, 16.27, and 16.957.

AB649,82,3 d. Other programs and policy mechanisms, including appliance and equipment efficiency standards, mandatory and voluntary energy conservation standards for buildings, and voluntary certification programs.

AB649,82,5 2. Reductions in use of and demand for a target fuel in assessments under subd. 1. shall be expressed as percentages of total sales for the target fuel.

AB649,82,11 (bn) Quadrennial goals. For each year of the quadrennium following the proceeding under par. (bc), the commission shall establish a goal for the reduction in demand for and use of each target fuel that can be achieved under the statewide programs, and a goal for the reduction in demand for and use of each regulated fuel that can be achieved by or on behalf of each municipal utility and retail electric cooperative, as follows:

AB649,82,12 1. For each regulated fuel:

AB649,82,13 a. Estimate the total sales of the regulated fuel that will occur in the year.

AB649,82,16 b. Estimate the proportion of the amount estimated under subd. 1. a. that will be attributable to sales by all energy utilities in the year and multiply the proportion estimated under this subd. 1. b. by the amount estimated under subd. 1. a.

AB649,82,20 c. Estimate the proportion of the amount estimated under subd. 1. a. that will be attributable to sales by each municipal utility or retail electric cooperative in the year and multiply the proportion estimated under this subd. 1. c. by the amount estimated under subd. 1. a.

AB649,82,22 d. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the regulated fuel for the year.

AB649,83,2 e. Multiply the product determined under subd. 1. b. by the difference determined under subd. 1. d. The resulting product shall be the goal under the statewide programs for the regulated fuel for the year, unless modified by the commission under sub. (8) (b) 2.

AB649,83,9 f. Multiply the product determined under subd. 1. c. for a municipal utility or retail electric cooperative by the difference determined under subd. 1. d. The resulting product shall be the goal for the regulated fuel for the year for the municipal utility or retail electric cooperative, unless modified by the commission under sub. (8) (b) 2., and except that the commission may revise the goal if the commission determines that the goal is unreasonable considering the composition of the membership or customer base of the municipal utility or retail electric cooperative.

AB649,83,10 2. For each unregulated fuel:

AB649,83,11 a. Estimate the total sales of the unregulated fuel that will occur in the year.

AB649,83,13 b. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the unregulated fuel for the year.

AB649,83,17 c. Multiply the estimate under subd. 2. a. by the difference determined under subd. 2. b. The resulting product shall be the goal under the statewide programs for the unregulated fuel for the year, unless modified by the commission under sub. (8) (b) 2.

AB649,83,21 (br) Quadrennial funding requirements. 1. `Statewide programs.' The commission shall determine the amount of funds necessary for statewide programs for each target fuel for each year of the quadrennium following the proceeding under par. (bc) as follows:

AB649,83,23 a. For each target fuel, determine the amount of funds necessary to achieve the goal determined under par. (bn) 1. e. or 2. c. for the year.

AB649,84,3 b. Subtract from the amount determined under subd. 1. a. the total amount that the commission allows all energy utilities to pay for utility-administered programs for the target fuel in the year.

AB649,84,7 c. Subtract from the amount determined under subd. 1. b. the total amount of funding the commission allows for all large energy customer programs for the target fuel in the year. The result determined under this subd. 1. c. shall be the amount of funding necessary for statewide programs for the target fuel in the year.

AB649,84,12 2. `Municipal utilities and retail electric cooperatives.' Except as provided in sub. (7) (bg), each municipal utility and retail electric cooperative shall determine the amount of funds necessary to achieve the goal determined under par. (bn) 1. f. for each regulated fuel for each year of the quadrennium following the proceeding under par. (bc).

AB649,84,16 (bw) Funding allocation. 1. A prime supplier shall report to the commission, in the form specified by the commission, the amount of unregulated fuel that the prime supplier imports into this state each year for ultimate use by end users in this state.

AB649,84,20 2. In the proceeding under par. (bc), for each target fuel, the commission shall determine the percentage of total sales of the target fuel by all energy utilities and prime suppliers in the quadrennium prior to the proceeding that is attributable to each energy utility and prime supplier.

AB649,84,25 3. For each regulated fuel, the commission shall order each energy utility to collect from its customers in each year of the quadrennium following the proceeding under par. (bc) an amount equal to the percentage determined for the energy utility under subd. 2. multiplied by the amount determined under par. (br) 1. c. for the regulated fuel for the year and pay the amount to a statewide programs contractor.

AB649,85,5 4. For each unregulated fuel, the commission shall order each prime supplier to pay to a statewide programs contractor in each year of the quadrennium following the proceeding under par. (bc) an amount equal to the percentage determined for the prime supplier under subd. 2. multiplied by the amount determined under par. (br) 1. c. for the unregulated fuel for the year.

AB649, s. 107 Section 107. 196.374 (3) (c) (title) of the statutes is amended to read:

AB649,85,7 196.374 (3) (c) (title) Reviews Other reviews and approvals.

AB649, s. 108 Section 108. 196.374 (3) (c) 1. of the statutes is amended to read:

AB649,85,13 196.374 (3) (c) 1. Review and approve contracts under sub. (2) (a) 1. between the energy utilities and program administrators If the energy utilities contract with more than one person under sub. (2) (a) 1., the commission shall determine how to allocate among those persons the requirements under this section involving statewide programs contractors.

AB649, s. 109 Section 109. 196.374 (3) (c) 2. (intro.), a. and b. of the statutes are consolidated, renumbered 196.374 (3) (c) 2. (intro.) and amended to read:

AB649,85,25 196.374 (3) (c) 2. (intro.) Review requests under sub. (2) (b) for utility-administered, supplemental utility, and large energy customer programs. The commission may condition its approval of a request under sub. (2) (b) as necessary to protect the public interest. The commission shall approve a request under sub. (2) (b) 1. or 2. if the commission determines that a proposed energy efficiency or renewable resource program is in the public interest and satisfies all of the following: a. The program, has specific savings targets and performance measurable performance-based goals approved by the commission. b. The program, is subject to independent evaluation by the commission. , and, for a utility-administered or supplemental utility program, satisfies all of the following:

AB649, s. 110 Section 110. 196.374 (3) (c) 2. am., bm., c., d. and e. of the statutes are created to read:

AB649,86,5 196.374 (3) (c) 2. am. The individual elements of the program do not duplicate elements of the statewide programs. This subd. 2. am. applies only to a utility-administered program.

AB649,86,7 bm. Implementation of the program will complement the statewide programs and enhance the ability of the statewide programs to meet or exceed their goals.

AB649,86,9 c. Implementation of the program will enhance the ability of the state to meet its greenhouse gas emission reduction goals under s. 299.03 (2).

AB649,86,11 d. Considering alternatives to the program, the costs of the program are reasonable.

AB649,86,12 e. The benefits of the program exceed the costs of the program.

AB649, s. 111 Section 111. 196.374 (3) (d) of the statutes is amended to read:

AB649,86,24 196.374 (3) (d) Audits. Annually, the commission shall contract with one or more independent auditors to prepare a financial and performance audit of the statewide, utility-administered, supplemental utility, and large energy customer programs specified in par. (b) 1. The purpose of the performance audit shall be to evaluate the programs and measure the performance of the programs against the goals and targets set approved by the commission under par. (b) 1. The person or persons with whom the energy utilities contract for program administration under sub. (2) (a) 1. shall pay the costs of the audits from the amounts paid under the contracts under sub. (2) (a) 1 (c) 2. or established under par. (bn) 1. e. or 2. c. The audit shall also determine the amount of reduction in the demand for and use of each target fuel that has resulted in the year under the programs.

AB649, s. 112 Section 112. 196.374 (3) (dm) of the statutes is created to read:

AB649,87,5 196.374 (3) (dm) Consultations. If an audit under par. (d) indicates that a program has failed to achieve one or more goals for the year of the audit, the commission shall consult with the statewide programs contractor or person administering the program regarding ways to modify the program to ensure that, as determined under sub. (8) (a), it will achieve its goals.

AB649, s. 113 Section 113. 196.374 (3) (e) 1. of the statutes is amended to read:

AB649,87,10 196.374 (3) (e) 1. The expenses of the commission, energy utilities, and program administrators contracted under sub. (2) (a) 1. statewide programs contractors in administering or participating in the statewide programs under sub. (2) (a) 1.

AB649, s. 114 Section 114. 196.374 (3) (e) 2. of the statutes is amended to read:

AB649,87,16 196.374 (3) (e) 2. The effectiveness of the statewide, utility-administered, supplemental utility, large energy customer, and commitment to community programs specified in par. (b) 1. and sub. (7) in reducing demand for electricity target fuels, and increasing the use of renewable resources owned by customers or members.

AB649, s. 115 Section 115. 196.374 (3) (f) 1. of the statutes is amended to read:

AB649,87,21 196.374 (3) (f) 1. Procedures for energy utilities to collectively contract with program administrators for administration of statewide programs under sub. (2) (a) 1. and to receive contributions from municipal utilities and retail electric cooperatives under sub. (7) (b) 2. statewide programs contractors.

AB649, s. 116 Section 116. 196.374 (3) (f) 2. of the statutes is amended to read:

AB649,88,2 196.374 (3) (f) 2. Procedures and criteria for commission review and approval of contracts for administration of statewide programs under sub. (2) (a) 1., including criteria for the selection of program administrators under sub. (2) (a) 1. statewide programs contractors.

AB649, s. 117 Section 117. 196.374 (3) (f) 3. of the statutes is amended to read:

AB649,88,7 196.374 (3) (f) 3. Procedures and criteria for commission review and approval of utility-administered, supplemental utility, and large energy customer programs under sub. (2) (b) 1. and 2., customer programs under sub. (2) (c), and requests under sub. (2) (b) 3.

AB649, s. 118 Section 118. 196.374 (3) (f) 4. of the statutes is amended to read:

AB649,88,12 196.374 (3) (f) 4. Minimum requirements for energy efficiency and renewable resource the statewide, utility-administered, supplemental utility, and large energy customer programs under sub. (2) (a) 1. and customer energy efficiency programs under sub. (2) (c).

AB649, s. 119 Section 119. 196.374 (4) (a) (intro.) of the statutes is amended to read:

AB649,88,18 196.374 (4) (a) (intro.) In implementing the statewide programs under sub. (2) (a) 1. or administering a commitment to community program under a contract under sub. (7) (am) 2., including the awarding of grants or contracts, a person who contracts with the utilities under sub. (2) (a) 1., a statewide programs contractor or a person who subcontracts with such a person a statewide programs contractor:

AB649, s. 120 Section 120. 196.374 (4) (a) 1. of the statutes is amended to read:

AB649,88,22 196.374 (4) (a) 1. May not discriminate against an energy utility provider or its affiliate or a wholesale supplier or its affiliate solely on the basis of its status as an energy utility provider or its affiliate or wholesale supplier or its affiliate.

AB649, s. 121 Section 121. 196.374 (4) (a) 2. of the statutes is amended to read:

AB649,88,25 196.374 (4) (a) 2. Shall provide services to utility customers target fuel users on a nondiscriminatory basis and subject to a customer's user's choice.