AB755: Bill Text

AB755,10,14 196.374 (5) (bm) 1. The commission shall commence a proceeding for for creating a proposal for allocating within different classes of customers an equitable distribution of the recovery of the amounts under par. (a) 1. by all energy utilities. The purpose of the allocation is to ensure that customers of an energy utility within a particular class are treated equitably with respect to customers of other energy utilities within the same class. No later than December 31, 2008, the commission shall submit the proposal to the governor and chief clerk of each house of the legislature for distribution to the appropriate standing committees of the legislature under s. 13.172 (3).

AB755, s. 15 Section 15. 196.374 (5m) (a) of the statutes is amended to read:

AB755,10,23 196.374 (5m) (a) The commission shall ensure that, on an annual basis, each customer class of an energy utility has the opportunity to receive grants and benefits under energy efficiency programs in an amount equal to the amount that is recovered from the customer class under sub. (5) (a) 1. Biennially, the commission shall submit a report to the governor, and the chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2), that summarizes the total amount recovered from each customer class and the total amount of grants made to, and benefits received by, each customer class.

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

AB755,11,2 196.3745 Energy efficiency and renewable energy investment program. (1) Definitions. In this section:

AB755,11,5 (a) "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.

AB755,11,8 (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.

AB755,11,10 (c) "Improvement or application" means an energy efficiency improvement or renewable resource application.

AB755,11,11 (d) "Political subdivision" means a city, village, town, or county.

AB755,11,13 (e) "Political subdivision loan" means a loan under s. 66.0627 (8) for an improvement or application.

AB755,11,15 (f) "Renewable resource application" means the application of a renewable resource, as defined in s. 196.374 (1) (j), at any type of premises.

AB755,11,17 (g) "Utility" means a public utility that furnishes electricity, natural gas, or water service to retail customers.

AB755,11,23 (2) Authorization. Subject to s. 196.374 (2) (b) 2m., 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. 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.

AB755,12,4 (3) Tariffs. A utility for which a program is authorized under sub. (2) shall file a tariff specifying the terms and conditions of utility and nonutility service provided to customers at premises where improvements or applications are made 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:

AB755,12,7 (a) Terms and conditions for billing customers at premises for utility and nonutility service related to improvements or applications for which investments are made.

AB755,12,11 (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.

AB755,12,16 (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.

AB755,12,17 (d) Any other term or condition required by the commission.

AB755,13,3 (4) Audits. (a) Preaudits. A premises is not eligible for an investment for an improvement or application under a program authorized under sub. (2) and a premises is not eligible for a political subdivision loan unless an audit is performed that demonstrates that the improvement or application is cost-effective. The commission shall promulgate rules for determining whether an improvement or application is cost-effective. 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. For an improvement, the rules may specify criteria that include the energy savings resulting from the improvement and the period of time required for the energy savings to equal the cost of the improvement.

AB755,13,8 (b) Postaudits. The commission shall promulgate rules requiring the performance of an audit after an improvement or application is made or installed under a program authorized under sub. (2) or pursuant to a political subdivision loan. The purpose of the audit shall be to verify that an improvement or application was made or installed.

AB755,13,11 (c) Certifications. The commission shall promulgate rules specifying the certification requirements that a person must satisfy in order to perform an audit required under this subsection.

AB755,13,18 (5) Contractors and subcontractors. (a) All work involved in making or installing an improvement or application under a program authorized under sub. (2) 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:

AB755,14,7 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.

AB755,14,18 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.

AB755,14,24 3. Except as provided in par. (b), agrees, if the contractor or subcontractor employs employees in trades that are apprenticeable under subch. I of ch. 106, to sponsor an apprenticeship training program that is approved by the department of workforce development for each of those trades and to employ in each of those trades the maximum ratio of apprentices to journeymen that are permitted under standards adopted, recognized, or approved by that department.

AB755,15,5 4. Provides the commission a detailed statement regarding related business entities if, at any time in the 3 years prior to inclusion on the prequalification list, the contractor or subcontractor has controlled or has been controlled by another corporation, partnership, or other business entity operating in the construction industry.

AB755,15,9 5. Certifies to the commission that the contractor or subcontractor understands that, in performing work under the program or pursuant to the political subdivision loan, the contractor or subcontractor will be required to use as subcontractors only those entities that are also included on the prequalification list.

AB755,15,11 6. Certifies to the commission that employees are not improperly classified as independent contractors in violation of federal or state law.

AB755,15,22 7. Discloses to the commission whether in the 3 years prior to inclusion on the prequalification list the contractor or subcontractor has had any type of business, contracting, or trade license, certification, or registration revoked or suspended; been debarred by any federal state, or local government agency; defaulted on any project; committed a willful violation of federal or state safety law as determined by a final decision of a court or government agency authority; or been found by a final decision of a court or government agency to be in violation of any other law relating to its contracting business, including wage and hour laws, prevailing wage laws, environmental laws, antitrust laws, or tax laws, where the penalty for such violation resulted in the imposition of a fine, back pay damages, or any other type of penalty, in an amount of more than $10,000.

AB755,15,24 8. Satisfies cultural competency requirements established in rules promulgated by the commission.

AB755,16,11 9. Certifies to the commission that not less than 30 percent of the total hours of work performed by the contractor or subcontractor on an individual improvement or application will be performed by individuals who, if the work is performed in a 1st or 2nd class city, reside in the 1st or 2nd class city, or, if the work is not performed in a 1st or 2nd class city, reside in the county in which the work is performed, and whose annual income during the year prior to performance of the work did not exceed 200 percent of the poverty level under the federal poverty income guidelines of the federal Department of Health and Human Services under 42 USC 9902 (2). The commission shall promulgate rules for making certifications under this subdivision. The rules shall provide that, once a contractor or subcontractor makes a certification under this subdivision, the certification is valid for 3 years.

AB755,16,16 10. Certifies to the commission that an application for inclusion on the prequalification list has been executed by a principal or person employed by the applicant who has sufficient knowledge to address all matters in the application, including an attestation stating, under the penalty of perjury, that all information submitted is true, complete, and accurate.

AB755,16,23 (b) The commission may include on the prequalification list under par. (a) a contractor or subcontractor who does not satisfy the requirement under par. (a) 3. The commission shall promulgate rules allowing a contractor or subcontractor who does not satisfy the requirement to perform work on an improvement or application for which an investment is made under a program authorized under sub. (2) or for which a political subdivision loan is made, only if no contractor or subcontractor who satisfies the requirement is available to perform the work.

AB755,17,2 (c) Based on good cause shown by the disclosures required under par. (a) 7., the commission may disapprove a contractor or subcontractor for inclusion in the prequalification list under par. (a). The commission shall promulgate rules defining "good cause" for purposes of this paragraph.

AB755,17,10 (d) A contractor or subcontractor shall report to the commission any material change to its business or operations that are relevant to the commission's approval to include the contractor or subcontractor in the prequalification list under par. (a). A contractor or subcontractor shall make a report required under this paragraph no later than 15 days after obtaining knowledge of the material change. If a contractor or subcontractor violates this paragraph, the commission may revoke the contractor's or subcontractor's inclusion in the prequalification list for a period of no more than 3 years.

AB755,17,15 (e) Except for conditional approvals under par. (f), a contractor's or subcontractor's inclusion in the prequalification list under par. (a) is valid for 2 years, unless the commission revokes the inclusion under par. (d). The commission shall promulgate rules for a contractor or subcontractor to apply every 2 years for the commission to renew an approval for inclusion in the prequalification list.

AB755,17,19 (f) The commission may conditionally approve a contractor or subcontractor for inclusion in the prequalification list under par. (a) for a period not exceeding 2 years. The commission shall set forth in writing any conditions of an approval made under this paragraph.

AB755,17,22 (g) Prior to disapproving a contractor or subcontractor for inclusion in the prequalification list under par. (a), the commission shall provide the contractor or subcontractor with notice and opportunity to be heard.

AB755,18,2 (h) The commission shall make the prequalification list under par. (a) available to the public. The prequalification list shall show the name, address, identification number assigned by the commission, and approval renewal date for each contractor or subcontractor. The commission shall update the prequalification list on a monthly basis and make the updated lists available to the public.

AB755,18,8 (i) The commission shall periodically review the qualifications and performance of contractors and subcontractors included in the prequalification list under par. (a). For good cause shown, the commission may, after notice and opportunity to be heard, revoke a contractor's or subcontractor's inclusion on the prequalification list. The commission shall promulgate rules defining "good cause" for purposes of this paragraph.

AB755,18,15 (6) Utilities. (a) A utility for which the commission authorizes a program under sub. (2) and approves a tariff under sub. (3) may include a separate line item on bills of a customer at premises benefited by an improvement or application made or installed under the program that compares the costs of the program borne by the customer with the energy savings resulting from the improvement or application. Notwithstanding s. 218.04, a utility need not obtain a license as a collection agency for this billing practice.

AB755,18,19 (b) Any costs that an energy utility, as defined in s. 196.374 (1) (e), incurs to administer, fund, or provide administrative services for an investment made in accordance with a tariff approved under sub. (3) shall be in addition to the amounts the commission requires the energy utility to spend under s. 196.374 (3) (b) 2.

AB755,18,22 (c) A utility shall use any payments received for improvements and applications from customers pursuant to a program authorized under sub. (2) to invest in other improvements and applications under the program.

AB755,18,24 (d) 1. A utility for which a program is authorized under sub. (2) shall prioritize the utility's spending on the program in the following manner:

AB755,19,4 a. If the source of the spending is a grant under sub. (8) (b), the utility shall give the greatest priority to improvements and applications at residential premises and the least priority to improvements and applications at nonresidential premises of customers with the greatest demand for service provided by the utility.

AB755,19,8 b. If the source of the spending is not a grant under sub. (8) (b), the utility shall give the greatest priority to improvements and applications at nonresidential premises of customers with the greatest demand for service provided by the utility and the least priority to improvements and applications at residential premises.

AB755,19,11 2. The commission shall promulgate rules implementing the requirements of subd. 1. and requiring utilities to make annual reports to the commission regarding their implementation of the requirements.

AB755,19,13 (e) A utility may not recover from ratepayers any bad debt related to nonutility services provided under a tariff approved under sub. (3).

AB755,19,16 (7) Political subdivisions. (a) A political subdivision shall use any repayments of political subdivision loans to make additional political subdivision loans.

AB755,19,23 (b) A political subdivision shall prioritize spending on political subdivision loans in a manner that gives the greatest priority to improvements and applications at residential premises and the least priority to improvements and applications at nonresidential premises of utility customers with the greatest demand for service provided by utilities. The commission shall promulgate rules implementing the requirements of this paragraph and requiring political subdivisions to make annual reports to the commission regarding their implementation of the requirements.

AB755,19,25 (8) Grants. (a) In this subsection, "block grant program" means the the energy efficiency and conservation block grant program under P.L. 111-5.

AB755,20,8 (b) Notwithstanding s. 16.54 (2) (a), the commission shall administer all moneys received by the state under the block grant program for the purpose of making grants to political subdivisions that make political subdivision loans and to utilities for which programs are authorized under sub. (2). The commission shall allocate the moneys received under the block grant program in the manner required under the block grant program. A political subdivision or utility may use a grant only for costs associated with political subdivision loans or a program authorized under sub. (2).

AB755, s. 17 Section 17. 196.378 (1) (i) of the statutes is amended to read:

AB755,20,11 196.378 (1) (i) "Renewable resource credit" means a credit calculated in accordance with rules promulgated under sub. (3) (a) 1. and , 1m., or 2.

AB755, s. 18 Section 18. 196.378 (3) (a) 1. of the statutes is amended to read:

AB755,21,2 196.378 (3) (a) 1. Subject to subd. 2., an electric provider that provides total renewable energy to its retail electric customers or members in excess of the percentages specified in sub. (2) (a) 2., or that satisfies the requirements specified in rules promulgated under subd. 1m., may, in the applicable year, create a renewable resource credit and sell to any other electric provider the renewable resource credit or a portion of the renewable resource credit at any negotiated price. An electric provider that creates or purchases a renewable resource credit or portion may use the credit or portion in a subsequent year, as provided under par. (c), to establish compliance with sub. (2) (a) 2. The commission shall promulgate rules that establish requirements for the creation and use of a renewable resource credit created on or after January 1, 2004, including calculating the amount of a renewable resource credit, and for the tracking of renewable resource credits by a regional renewable resource credit tracking system. The rules shall specify the manner for aggregating or allocating credits under this subdivision or sub. (2) (b) 4. or 5.

AB755, s. 19 Section 19. 196.378 (3) (a) 1m. of the statutes is created to read:

AB755,21,14 196.378 (3) (a) 1m. The commission shall promulgate rules that allow an electric utility to create renewable resource credits based on the reduction in electricity usage, increase in the efficiency of electricity usage, and generation of renewable energy that results in a year from an improvement or application, as defined in s. 196.3745 (1) (c), under a program of the electric utility that is authorized under s. 196.3745 (2), but only if the utility's spending source for the improvement or application is not a grant under s. 196.3745 (8) (b). The rules shall include requirements for measuring the amount of such a reduction, increase, and generation and calculating the amount of a renewable resource credit. With respect to reductions, the rules shall provide that a reduction equal to one kilowatt-hour results in the creation of a renewable resource credit equal to one kilowatt-hour.

AB755, s. 20 Section 20. 196.378 (3) (c) of the statutes is amended to read:

AB755,21,22 196.378 (3) (c) A renewable resource credit created under s. 196.378 (3) (a), 2003 stats., may not be used after December 31, 2011. A renewable resource credit created under par. (a) 1., 1m., or 2., as affected by 2005 Wisconsin Act 141, may not be used after the 4th year after the year in which the credit is created, except the commission may promulgate rules specifying a different period of time if the commission determines that such period is necessary for consistency with any regional renewable resource credit trading program that applies in this state.

AB755, s. 21 Section 21 . 227.01 (13) (t) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755,22,5 227.01 (13) (t) Ascertains and determines prevailing wage rates under ss. 66.0903, 66.0904, 103.49, 103.50, 196.3745 (5) (a) 1., and 229.8275, except that any action or inaction which ascertains and determines prevailing wage rates under ss. 66.0903, 66.0904, 103.49, 103.50, 196.3745 (5) (a) 1., and 229.8275 is subject to judicial review under s. 227.40.

AB755, s. 22 Section 22. 709.03 (form) C. 25m. of the statutes is created to read:

AB755,22,7 709.03 (form) - See PDF for table

AB755, s. 23 Section 23 . 946.15 (1) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755,23,7 946.15 (1) Any employer, or any agent or employee of an employer, who induces any person who seeks to be or is employed pursuant to a public contract as defined in s. 66.0901 (1) (c) or who seeks to be or is employed on a project on which a prevailing wage rate determination has been issued by the department of workforce development under s. 66.0903 (3), 66.0904 (4), 103.49 (3), 103.50 (3), 196.3745 (5) (a) 1., or 229.8275 (3) or by a local governmental unit, as defined in s. 66.0903 (1) (d), under s. 66.0903 (6) or 66.0904 (6) to give up, waive, or return any part of the compensation to which that person is entitled under his or her contract of employment or under the prevailing wage rate determination issued by the department or local governmental unit, or who reduces the hourly basic rate of pay normally paid to an employee for work on a project on which a prevailing wage rate determination has not been issued under s. 66.0903 (3) or (6), 66.0904 (4) or (6), 103.49 (3), 103.50 (3), 196.3745 (5) (a) 1., or 229.8275 (3) during a week in which the employee works both on a project on which a prevailing wage rate determination has been issued and on a project on which a prevailing wage rate determination has not been issued, is guilty of a Class I felony.

AB755, s. 24 Section 24 . 946.15 (2) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755,23,24 946.15 (2) Any person employed pursuant to a public contract as defined in s. 66.0901 (1) (c) or employed on a project on which a prevailing wage rate determination has been issued by the department of workforce development under s. 66.0903 (3), 66.0904 (4), 103.49 (3), 103.50 (3), 196.3745 (5) (a) 1., or 229.8275 (3) or by a local governmental unit, as defined in s. 66.0903 (1) (d), under s. 66.0903 (6) or 66.0904 (6) who gives up, waives, or returns to the employer or agent of the employer any part of the compensation to which the employee is entitled under his or her contract of employment or under the prevailing wage determination issued by the department or local governmental unit, or who gives up any part of the compensation to which he or she is normally entitled for work on a project on which a prevailing wage rate determination has not been issued under s. 66.0903 (3) or (6), 66.0904 (4) or (6), 103.49 (3), 103.50 (3), 196.3745 (5) (a) 1., or 229.8275 (3) during a week in which the person works part-time on a project on which a prevailing wage rate determination has been issued and part-time on a project on which a prevailing wage rate determination has not been issued, is guilty of a Class C misdemeanor.

AB755, s. 25 Section 25 . 946.15 (3) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755,24,13 946.15 (3) Any employer or labor organization, or any agent or employee of an employer or labor organization, who induces any person who seeks to be or is employed on a project on which a prevailing wage rate determination has been issued by the department of workforce development under s. 66.0903 (3), 66.0904 (4), 103.49 (3), 103.50 (3), 196.3745 (5) (a) 1., or 229.8275 (3) or by a local governmental unit, as defined in s. 66.0903 (1) (d), under s. 66.0903 (6) or 66.0904 (6) to permit any part of the wages to which that person is entitled under the prevailing wage rate determination issued by the department or local governmental unit to be deducted from the person's pay is guilty of a Class I felony, unless the deduction would be permitted under 29 CFR 3.5 or 3.6 from a person who is working on a project that is subject to 40 USC 3142.

AB755, s. 26 Section 26 . 946.15 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB755,24,24 946.15 (4) Any person employed on a project on which a prevailing wage rate determination has been issued by the department of workforce development under s. 66.0903 (3), 66.0904 (4), 103.49 (3), 103.50 (3), 196.3745 (5) (a) 1., or 229.8275 (3) or by a local governmental unit, as defined in s. 66.0903 (1) (d), under s. 66.0903 (6) or 66.0904 (6) who permits any part of the wages to which that person is entitled under the prevailing wage rate determination issued by the department or local governmental unit to be deducted from his or her pay is guilty of a Class C misdemeanor, unless the deduction would be permitted under 29 CFR 3.5 or 3.6 from a person who is working on a project that is subject to 40 USC 3142.

AB755, s. 27 Section 27. Nonstatutory provisions.

AB755,25,13 (1) By the first day of the 4th month beginning after the effective date of this subsection, the public service commission shall, using the procedure under section 227.24 of the statutes, promulgate the rules required under section 196.3745 (4) (a), (b), and (c), (5) (a) 8. and 9., (b), (c), (e), and (i), (6) (d) 2., and (7) (b) of the statutes, as created by this act, for the period before the effective date of the permanent rules promulgated under section 196.3745 (4) (a), (b), and (c), (5) (a) 8. and 9., (b), (c), (e), and (i), (6) (d) 2. and (7) (b) of the statutes, as created by this act, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the public service commission is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB755,26,2 (2) If the public service commission determines to promulgate rules instead of issuing an order under section 196.374 (2) (d) of the statutes, as created by this act, then, by the first day of the 4th month beginning after the effective date of this subsection, the public service commission shall, using the procedure under section 227.24 of the statutes, promulgate rules under section 196.374 (2) (d) of the statutes, as created by this act, for the period before the effective date of the permanent rules promulgated under section 196.374 (2) (d) of the statutes, as created by this act, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the public service commission is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB755,26,13 (3) By the first day of the 4th month beginning after the effective date of this subsection, the department of administration shall, using the procedure under section 227.24 of the statutes, promulgate the rules required under section 16.26 (2) of the statutes, as created by this act, for the period before the effective date of the permanent rules promulgated under section 16.26 (2) of the statutes, as created by this act, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the department of administration is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

AB755, s. 28 Section 28. Initial applicability.

AB755,26,16 (1) The treatment of sections 66.027 (8) and 196.3745 of the statutes first applies to loans made by political subdivisions on the effective date of this subsection.

AB755,26,19 (2) The treatment of section 709.03 (form) C. 25m. of the statutes first applies to original real estate condition reports that are furnished on the effective date of this subsection.

AB755,26,20 (End)