Amendment ASA1-AB649

AB649-ASA1, s. 110 Section 110. 196.374 (3) (b) 3. of the statutes is renumbered 196.374 (3) (bw) 3g. and amended to read:

AB649-ASA1,52,3 196.374 (3) (bw) 3g. The commission shall submit to the joint committee on finance any proposal to require each an energy utility to spend a larger collect from its customers and pay to a statewide programs contractor in a year under subd. 3. a percentage of its annual operating revenues than the percentage specified in subd. 2. (intro.) to fund the programs specified in subd. 2. (intro.) that is greater than 1.2 percent. If the cochairpersons of the committee do not notify the commission within 10 working days after the commission submits such a proposal that the committee has scheduled a meeting to review the proposal, the commission may require each the energy utility to spend the percentage specified in comply with the proposal. If, within 10 working days after the commission submits a proposal, the cochairpersons of the committee notify the commission that the committee has scheduled a meeting to review the proposal, but, within 90 days of providing the notice, the committee does not object to the proposal, the commission may require each the energy utility to spend the percentage specified in comply with the proposal. If, within 90 days after providing the notice, the committee objects to the proposal, the commission may not require each the energy utility to spend the percentage specified in the proposal collect from its customers and pay to a statewide programs contractor 1.2 percent of its annual operating revenues. The commission may submit a proposal, or submit revisions to a proposal that the commission has previously submitted, at any time.

AB649-ASA1, s. 111 Section 111. 196.374 (3) (bc), (bg) (title), 1., 1m. (intro) and 2., (bn), (br) and (bw) (title), 1., 2., 3., 3r. and 4. of the statutes are created to read:

AB649-ASA1,52,14 196.374 (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) and shall hold contested case hearings for establishing goals under par. (bn), establishing funding requirements under par. (br), and allocating the funding requirements under par. (bw). The commission shall carry out its duties under this paragraph in a manner that implements state policy under s. 1.12 (4), establishes all achievable and cost-effective energy savings, and is designed to enable the state to meet or exceed the goals specified in s. 299.03 (2) and (3m) (a) and (b).

AB649-ASA1,52,18 (bg) (title) 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-ASA1,52,20 a. Cost-effective energy efficiency and renewable resource programs administered by energy providers or other persons.

AB649-ASA1,52,24 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 and the renewable portfolio standard, as defined in s. 196.378 (1r) (gm).

AB649-ASA1,52,25 c. Low-income weatherization programs under ss. 16.26, 16.27, and 16.957.

AB649-ASA1,53,3 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-ASA1,53,5 1m. (intro.) In making assessments under subd. 1., the commission shall consider all of the following:

AB649-ASA1,53,7 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-ASA1,53,13 (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-ASA1,53,14 1. For each regulated fuel:

AB649-ASA1,53,15 a. Estimate the total sales of the regulated fuel that will occur in the year.

AB649-ASA1,53,18 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-ASA1,53,22 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-ASA1,53,24 d. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the regulated fuel for the year.

AB649-ASA1,54,4 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-ASA1,54,17 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; and except that, if the joint committee on finance objects under par. (bw) 3g. to a proposal regarding one or more energy utilities, the commission shall revise goals for municipal utilities and retail electric cooperatives in a manner that is consistent with the energy utility payments to the statewide programs contractor that result from the objection, and the commission shall notify municipal utilities and retail electric cooperatives of the revised goals.

AB649-ASA1,54,18 2. For each unregulated fuel:

AB649-ASA1,54,19 a. Estimate the total sales of the unregulated fuel that will occur in the year.

AB649-ASA1,54,21 b. Determine the difference between the percentages determined under par. (bg) 1. a. and c. for the unregulated fuel for the year.

AB649-ASA1,54,25 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-ASA1,55,4 (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-ASA1,55,6 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-ASA1,55,9 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-ASA1,55,13 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-ASA1,55,20 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). The minimum amount that a municipal utility or retail electric cooperative may determine for a year under this subdivision shall correspond to a monthly fee imposed on each customer or member that collects an annual average of $8 per meter.

AB649-ASA1,55,24 (bw) (title) 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-ASA1,56,4 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-ASA1,56,12 3. For each regulated fuel and for each year of the quadrennium following the proceeding under par. (bc), the commission shall determine the amount equal to the percentage determined for an energy utility under subd. 2. multiplied by the amount determined under par. (br) 1. c. for the regulated fuel for the year. Subject to subd. 3g., for each year, the commission shall require the energy utility to collect from its customers and pay to a statewide programs contractor the amount so determined or 1.2 percent of the energy utility's annual operating revenues for the year, whichever is greater.

AB649-ASA1,56,20 3r. For the purpose of funding grants and loans under sub. (2) (a) 2. e., the commission shall require each energy utility each year to collect from its customers and pay to a statewide programs contractor 0.2 percent of the energy utility's annual operating revenues for the year. The amounts that an energy utility is required to pay under this subdivision are in addition to the amounts the energy utility is required to pay under subd. 3. or 3g. This subdivision does not apply after the first day of the 48th month beginning after the effective date of this subdivision .... [LRB inserts date].

AB649-ASA1,56,25 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-ASA1, s. 112 Section 112. 196.374 (3) (c) (title) of the statutes is amended to read:

AB649-ASA1,57,2 196.374 (3) (c) (title) Reviews Other reviews and approvals.

AB649-ASA1, s. 113 Section 113. 196.374 (3) (c) 1. of the statutes is amended to read:

AB649-ASA1,57,8 196.374 (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-ASA1, s. 114 Section 114. 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-ASA1,57,20 196.374 (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-ASA1, s. 115 Section 115. 196.374 (3) (c) 2. bm., c., d. and e. of the statutes are created to read:

AB649-ASA1,57,25 196.374 (3) (c) 2. 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-ASA1,58,2 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-ASA1,58,4 d. Considering alternatives to the program, the costs of the program are reasonable.

AB649-ASA1,58,5 e. The benefits of the program exceed the costs of the program.

AB649-ASA1, s. 116 Section 116. 196.374 (3) (d) of the statutes is amended to read:

AB649-ASA1,58,17 196.374 (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-ASA1, s. 117 Section 117. 196.374 (3) (dm) of the statutes is created to read:

AB649-ASA1,58,23 196.374 (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-ASA1, s. 118 Section 118. 196.374 (3) (e) of the statutes is renumbered 196.374 (3) (e) 1m., and 196.374 (3) (e) 1m. a. and b., as renumbered, are amended to read:

AB649-ASA1,59,4 196.374 (3) (e) 1m. a. 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-ASA1,59,8 b. 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-ASA1, s. 119 Section 119. 196.374 (3) (e) 2m. of the statutes is created to read:

AB649-ASA1,59,21 196.374 (3) (e) 2m. No later than January 1, 2014, the commission shall submit a report to the legislature in the manner described under s. 13.172 (3) on the status, development, and use of small-scale renewable technologies and the costs, benefits, and alternatives for providing additional incentives for the deployment of such technologies on a distributed generation basis. The report shall also recommend goals and mechanisms for encouraging the deployment of such technologies on such a basis, examine any obstacles to achieving the goals, and examine the relationship between the goals and the voluntary tariff offerings of energy utilities, the statewide energy programs, and any relevant federal programs. In preparing the report, the commission shall consult with the office of energy independence, the department of commerce, and the department of agriculture, trade and consumer protection.

AB649-ASA1, s. 120 Section 120. 196.374 (3) (f) 1. of the statutes is amended to read:

AB649-ASA1,60,2 196.374 (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-ASA1, s. 121 Section 121. 196.374 (3) (f) 2. of the statutes is amended to read:

AB649-ASA1,60,7 196.374 (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-ASA1, s. 122 Section 122. 196.374 (3) (f) 3. of the statutes is amended to read:

AB649-ASA1,60,12 196.374 (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-ASA1, s. 123 Section 123. 196.374 (3) (f) 4. of the statutes is amended to read:

AB649-ASA1,60,17 196.374 (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-ASA1, s. 124 Section 124. 196.374 (4) (a) (intro.) of the statutes is amended to read:

AB649-ASA1,60,23 196.374 (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-ASA1, s. 125 Section 125. 196.374 (4) (a) 1. of the statutes is amended to read:

AB649-ASA1,61,3 196.374 (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-ASA1, s. 126 Section 126. 196.374 (4) (a) 2. of the statutes is amended to read:

AB649-ASA1,61,6 196.374 (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.

AB649-ASA1, s. 127 Section 127. 196.374 (4) (b) of the statutes is amended to read:

AB649-ASA1,61,15 196.374 (4) (b) An energy utility that provides financing under an energy efficiency program under sub. (2) (b) 1. or 2. a utility-administered or supplemental utility program for installation, by a customer, of energy efficiency or renewable resource processes, equipment, or appliances, or an affiliate of such a utility, may not sell to or install for the customer those processes, equipment, appliances, or related materials. The customer shall acquire the installation of the processes, equipment, appliances, or related materials from an independent contractor of the customer's choice.

AB649-ASA1, s. 128 Section 128. 196.374 (5) (a) of the statutes is amended to read:

AB649-ASA1,61,21 196.374 (5) (a) Rate-making orders. The commission shall ensure in rate-making orders that an energy utility recovers from its ratepayers the amounts the energy utility spends for pays for statewide programs and the costs the energy utility incurs for utility-administered and supplemental utility programs under sub. (2) (a) 1.

AB649-ASA1, s. 129 Section 129. 196.374 (5) (b) 1. and (bm) 3. of the statutes are consolidated, renumbered 196.374 (5) (b) 1. and amended to read:

AB649-ASA1,62,8 196.374 (5) (b) 1. Except as provided in sub. (2) (c) and par. (bm) 2. subds. 3. and 4., if the commission has determined that a customer of an energy utility is a large energy customer under 2005 Wisconsin Act 141, section 102 (8) (b), then, each month, the energy utility shall collect from the customer, for recovery of amounts under par. (a), the amount determined by the commission under 2005 Wisconsin Act 141, section 102 (8) (c). (bm) 3. Until the proposal under subd. 1. takes effect, the The commission may not include the revenues received from a large energy customer in the calculation of operating revenues for purposes of sub. (3) (b) 2. this subdivision for an energy utility that in 2005 did not collect revenues from its customers under s. 196.374 (3), 2003 stats.

AB649-ASA1, s. 130 Section 130. 196.374 (5) (b) 2. of the statutes is amended to read:

AB649-ASA1,62,23 196.374 (5) (b) 2. A customer of an energy utility that the commission has not determined is a large energy customer under 2005 Wisconsin Act 141, section 102 (8) (b), may petition the commission for a determination that the customer is a large energy customer. The commission shall determine that a petitioner is a large energy customer if the petitioner satisfies the definition of large energy customer for any month in the 12 months preceding the date of the petition. If the commission makes such a determination, the commission shall also determine the amount that the energy utility may collect from the customer each month for recovery of the amounts under par. (a). The commission shall determine an amount that ensures that the amount collected from the customer is similar to the amounts collected from other customers that have a similar level of energy costs as the customer. Except as provided in sub. (2) (c) and par. (bm) 2. subds. 3. and 4., each month, the energy utility shall collect from the customer, for recovery of amounts under par. (a), the amount determined by the commission under this subdivision.

AB649-ASA1, s. 131 Section 131. 196.374 (5) (b) 4. of the statutes is created to read:

AB649-ASA1,63,6 196.374 (5) (b) 4. In addition to the amounts that an energy utility may collect from a large energy customer under subd. 1. or 2., the energy utility may collect from the customer the customer's share of any amount that the energy utility is required to pay a statewide programs contractor which exceeds 1.2 percent of the energy utility's annual operating revenues for a year and the customer's share is subject to par. (d).

AB649-ASA1, s. 132 Section 132. 196.374 (5) (bm) (title) of the statutes is repealed.

AB649-ASA1, s. 133 Section 133. 196.374 (5) (bm) 1. of the statutes, as affected by 2009 Wisconsin Act 180, is repealed.

AB649-ASA1, s. 134 Section 134. 196.374 (5) (bm) 2. of the statutes is renumbered 196.374 (5) (b) 3. and 196.374 (5) (b) 3. (intro.), as renumbered, is amended to read:

AB649-ASA1,63,16 196.374 (5) (b) 3. If, by July 1, 2009, legislation based on the proposal under subd. 1. has not been enacted, the The commission shall, beginning on July 1, 2009, annually increase the amount that an energy utility may recover from a large energy customer each month under par. (b) subd. 1. or 2. only by a percentage that is the lesser of the following:

AB649-ASA1, s. 135 Section 135. 196.374 (5) (d) of the statutes is amended to read:

AB649-ASA1,63,22 196.374 (5) (d) Equitable contributions. Subject to pars. (b) and (bm) 2. par. (b) 1. to 3., the commission shall ensure that the cost of energy efficiency and renewable resource the statewide and utility-administered programs is equitably divided among customer classes so that similarly situated ratepayers contribute equivalent amounts for the programs.

AB649-ASA1, s. 136 Section 136. 196.374 (5m) (a) of the statutes is amended to read:

AB649-ASA1,64,12 196.374 (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 the statewide and utility-administered programs in an amount equal to the amount that is recovered from the customer class under sub. (5) (a) equitable manner that meets the reasonable needs of the class for the grants and benefits and that is consistent with par. (am). The commission shall also ensure that the amounts recovered from ratepayers under sub. (5) (a) are used for the benefit of ratepayers and that end users of unregulated fuels receive grants and benefits under the statewide programs in an amount equal to the amount paid by prime suppliers to statewide program contractors under sub. (3) (bw) 4. 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 energy utility customer class and the total amount of grants made to, and benefits received by, each customer class.

AB649-ASA1, s. 137 Section 137. 196.374 (5m) (am) of the statutes is created to read:

AB649-ASA1,64,19 196.374 (5m) (am) The commission shall ensure that the statewide and utility-administered programs are administered in a manner that targets agricultural, commercial, industrial, and institutional sectors in order to achieve the available, most cost-effective energy conservation and efficiency measures that have the greatest potential to enable the state to meet or exceed the goals specified in s. 299.03 (2) and (3m) (a) and (b) at the lowest costs.

AB649-ASA1, s. 138 Section 138. 196.374 (5m) (b) of the statutes is amended to read:

AB649-ASA1,65,2 196.374 (5m) (b) The commission shall ensure that customers target fuel users throughout the state have an equivalent opportunity to receive the benefits of the statewide and utility-administered programs under sub. (2) (a) 1. and (b) 1. The commission shall ensure that the statewide programs are designed to ensure that retail customers target fuel users in areas not served by utility-administered programs under sub. (2) (b) 1. receive equivalent opportunities as those in areas served by utility-administered programs under sub. (2) (b) 1.