SB450: Bill Text

SB450, s. 72 Section 72. 196.374 (1) (am) of the statutes is created to read:

SB450,74,5 196.374 (1) (am) "Biomass" means plant material or residue, biological waste, or landfill gases. "Biomass" does not include garbage, as defined in s. 289.01 (9), or nonbiological industrial, nonbiological commercial, or nonbiological household waste.

SB450, s. 73 Section 73. 196.374 (1) (b) of the statutes is amended to read:

SB450,74,12 196.374 (1) (b) "Commitment to community program" means an energy efficiency or load management program by or on behalf for regulated fuel usage in the service territory of a municipal utility or retail electric cooperative or a renewable resource program involving customer applications of renewable resources that take place at the premises of the customers or members of a municipal utility or retail electric cooperative.

SB450, s. 74 Section 74. 196.374 (1) (c) of the statutes is amended to read:

SB450,74,17 196.374 (1) (c) "Customer application of renewable resources" means the generation of energy from renewable resources that takes place on the premises of a customer or member of an energy utility or, municipal utility, or a member of a retail electric cooperative.

SB450, s. 75 Section 75. 196.374 (1) (d) of the statutes is amended to read:

SB450,74,22 196.374 (1) (d) "Energy efficiency program" means a program for reducing the usage or increasing the efficiency of the usage of energy by a customer or member of an energy utility, municipal utility, or retail electric cooperative a target fuel. "Energy efficiency program" does not include load management.

SB450, s. 76 Section 76. 196.374 (1) (dm) of the statutes is created to read:

SB450,74,25 196.374 (1) (dm) "Energy provider" means an energy utility, municipal utility, or retail electric cooperative.

SB450, s. 77 Section 77. 196.374 (1) (er) of the statutes is created to read:

SB450,75,3 196.374 (1) (er) "Large energy customer program" means a program under sub. (2) (c).

SB450, s. 78 Section 78. 196.374 (1) (f) of the statutes is amended to read:

SB450,75,10 196.374 (1) (f) "Load management program" means a program to allow an energy utility, municipal utility, provider or wholesale electric cooperative, as defined in s. 16.957 (1) (v), retail electric cooperative, or municipal electric company, as defined in s. 66.0825 (3) (d), supplier to control or manage daily or seasonal customer or member demand associated with equipment or devices used by customers or members.

SB450, s. 79 Section 79. 196.374 (1) (hm) of the statutes is created to read:

SB450,75,13 196.374 (1) (hm) "Natural gas" does not include natural gas that is used to generate electricity.

SB450, s. 80 Section 80. 196.374 (1) (i) of the statutes is repealed.

SB450, s. 81 Section 81. 196.374 (1) (ig) of the statutes is created to read:

SB450,75,18 196.374 (1) (ig) "Prime supplier" means a person that imports an unregulated fuel into this state for sale to a wholesale or retail distributor, or to an end user, for use in this state.

SB450, s. 82 Section 82. 196.374 (1) (ir) of the statutes is created to read:

SB450,75,20 196.374 (1) (ir) "Regulated fuel" means electricity or natural gas.

SB450, s. 83 Section 83. 196.374 (1) (j) (intro.) of the statutes is amended to read:

SB450,76,2 196.374 (1) (j) (intro.) "Renewable resource" means a resource that derives energy from any source other than coal, petroleum products, nuclear power or, except as used in a fuel cell, natural gas, or nonbiological industrial, nonbiological commercial, or nonbiological household waste. "Renewable resource" includes resources deriving energy from any of the following:

SB450, s. 84 Section 84. 196.374 (1) (j) 8. of the statutes is created to read:

SB450,76,4 196.374 (1) (j) 8. Any other resource designated by the commission by rule.

SB450, s. 85 Section 85. 196.374 (1) (mb) of the statutes is created to read:

SB450,76,7 196.374 (1) (mb) "Statewide programs" means the statewide energy efficiency and renewable resource programs established under sub. (2) (a) 1.

SB450, s. 86 Section 86. 196.374 (1) (me) of the statutes is created to read:

SB450,76,10 196.374 (1) (me) "Statewide programs contractor" means a person with whom energy utilities contract under sub. (2) (a) 1. to administer the statewide programs.

SB450, s. 87 Section 87. 196.374 (1) (mh) of the statutes is created to read:

SB450,76,13 196.374 (1) (mh) "Supplemental utility program" means a program under sub. (2) (b) 2.

SB450, s. 88 Section 88. 196.374 (1) (mL) of the statutes is created to read:

SB450,76,15 196.374 (1) (mL) "Target fuel" means a regulated or unregulated fuel.

SB450, s. 89 Section 89. 196.374 (1) (mo) of the statutes is created to read:

SB450,76,18 196.374 (1) (mo) "Total sales" means, with respect to a target fuel, the total amount of the target fuel sold at retail in this state as measured in energy units.

SB450, s. 90 Section 90. 196.374 (1) (mr) of the statutes is created to read:

SB450,76,21 196.374 (1) (mr) "Unregulated fuel" means liquified petroleum gas or heating oil.

SB450, s. 91 Section 91. 196.374 (1) (mu) of the statutes is created to read:

SB450,76,24 196.374 (1) (mu) "Utility-administered program" means a program under sub. (2) (b) 1.

SB450, s. 92 Section 92. 196.374 (1) (o) of the statutes is repealed.

SB450, s. 93 Section 93. 196.374 (2) (a) 1. of the statutes is amended to read:

SB450,77,11 196.374 (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.

SB450, s. 94 Section 94. 196.374 (2) (a) 2. (intro.) of the statutes is amended to read:

SB450,77,18 196.374 (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:

SB450, s. 95 Section 95. 196.374 (2) (a) 2. a. of the statutes is amended to read:

SB450,77,22 196.374 (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.

SB450, s. 96 Section 96. 196.374 (2) (a) 2. b. of the statutes is amended to read:

SB450,78,10 196.374 (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.

SB450, s. 97 Section 97. 196.374 (2) (a) 2. d. of the statutes is amended to read:

SB450,78,13 196.374 (2) (a) 2. d. Initiatives for research and development regarding the environmental and economic impacts of energy target fuel use in this state.

SB450, s. 98 Section 98. 196.374 (2) (a) 3. of the statutes is amended to read:

SB450,78,19 196.374 (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.

SB450, s. 99 Section 99. 196.374 (2) (b) (title) of the statutes is amended to read:

SB450,78,21 196.374 (2) (b) (title) Utility-administered and supplemental utility programs.

SB450, s. 100 Section 100. 196.374 (2) (b) 1. of the statutes is amended to read:

SB450,79,5 196.374 (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.

SB450, s. 101 Section 101. 196.374 (2) (b) 2. of the statutes is amended to read:

SB450,79,12 196.374 (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.

SB450, s. 102 Section 102. 196.374 (2) (b) 3. of the statutes is amended to read:

SB450,79,21 196.374 (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.

SB450, s. 103 Section 103. 196.374 (2) (c) of the statutes is amended to read:

SB450,80,9 196.374 (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.

SB450, 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:

SB450,81,6 196.374 (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.

SB450, s. 105 Section 105. 196.374 (3) (b) (title) and 2. to 4. of the statutes are repealed.

SB450, s. 106 Section 106. 196.374 (3) (bc), (bg), (bn), (br) and (bw) of the statutes are created to read:

SB450,81,14 196.374 (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).

SB450,81,18 (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:

SB450,81,20 a. Cost-effective energy efficiency and renewable resource programs administered by energy providers or other persons.

SB450,81,24 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).

SB450,81,25 c. Low-income weatherization programs under ss. 16.26, 16.27, and 16.957.

SB450,82,3 d. Other programs and policy mechanisms, including appliance and equipment efficiency standards, mandatory and voluntary energy conservation standards for buildings, and voluntary certification programs.

SB450,82,5 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.

SB450,82,11 (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:

SB450,82,12 1. For each regulated fuel:

SB450,82,13 a. Estimate the total sales of the regulated fuel that will occur in the year.

SB450,82,16 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.

SB450,82,20 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.

SB450,82,22 d. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the regulated fuel for the year.

SB450,83,2 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.

SB450,83,9 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.

SB450,83,10 2. For each unregulated fuel:

SB450,83,11 a. Estimate the total sales of the unregulated fuel that will occur in the year.

SB450,83,13 b. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the unregulated fuel for the year.

SB450,83,17 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.

SB450,83,21 (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:

SB450,83,23 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.

SB450,84,3 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.

SB450,84,7 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.