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LRB-4393/1
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2019 - 2020 LEGISLATURE
October 10, 2019 - Introduced by Senators Olsen, Cowles, Darling, Miller and
Wanggaard, cosponsored by Representatives Wittke, Zimmerman, Kitchens,
Tranel, Ramthun, Oldenburg, Quinn, Kulp and Gruszynski. Referred to
Committee on Natural Resources and Energy.
SB494,1,4 1An Act to renumber and amend 121.91 (4) (o) 1.; to amend 121.91 (4) (o) 3.
2and 121.91 (4) (o) 4.; and to create 115.28 (4m), 121.91 (4) (o) 1e. and 121.91
3(4) (o) 1h. of the statutes; relating to: the school district revenue limit
4adjustment for energy efficiency projects.
Analysis by the Legislative Reference Bureau
Current law generally limits the total amount of revenue per pupil that a school
district may receive from general school aids and property taxes in a school year to
the amount of revenue allowed per pupil in the previous school year plus a per pupil
increase, if any, as provided by law. However, current law also includes several
adjustments to the general revenue limit. For example, if a school district increases
the services that it provides by adding responsibility for providing a service
transferred to it from another governmental unit, the school district's revenue limit
is increased by the cost of that service.
Current law provides a revenue limit adjustment for the amount a school
district spends on projects to implement energy efficiency measures or to purchase
energy efficiency products if the school board adopted a resolution to do so before
January 1, 2018. This bill makes the following changes to the energy efficiency
revenue limit adjustment:
1. Eliminates the restriction that a school board must have passed a resolution
before January 1, 2018, and makes the energy efficiency revenue limit adjustment
available to a school board that adopts a resolution to use the revenue limit
adjustment on or after date on which the bill becomes law.

2. Changes eligibility requirements for projects that qualify for the revenue
limit adjustment. First, under the bill a qualifying project is a project to purchase
or implement energy conservation measures. The bill incorporates the definition of
“energy conservation measure” that applies to an energy savings performance
contract. Second, the bill changes the eligibility requirement related to the term of
any debt issued to finance the energy efficiency project that is the subject of the
resolution. Under the bill, any debt issued to finance the project may not be for a term
that is longer than 20 years, 80 percent of the useful life of the energy conservation
measures, or 80 percent of the useful life of the facility at which the project is
implemented, whichever is shorter. Under current law, the term of any debt issued
to finance the project may not be more than 20 years. Under both current law and
the bill, a qualifying project must result in energy or operational cost savings and
must be governed by an energy savings performance contract.
3. Requires a resolution to utilize the revenue limit adjustment to include a
statement that the school board has considered and made a good faith effort to
comply with the legal requirements for the revenue limit adjustment.
4. Requires a school board to hold a public hearing on the resolution at least
30 days before voting on the resolution and to provide public notice of the public
hearing at least 10 days before the public hearing. The bill includes a list of specific
items that must be in the agenda for the public hearing.
5. Requires a school board that passes a resolution to submit a report to the
Department of Public Instruction that includes a) the board vote on the resolution,
b) the information required to be in the public hearing agenda, c) information about
projected savings, and d) a statement signed by the school board president and the
school district administrator that states that the school board has considered and
made a good faith effort to comply with the legal requirements for the revenue limit
adjustment. Under the bill, DPI must post the information in these reports on its
Internet site.
6. Requires that if the school district issued debt to finance the project, the
operational cost savings must be used to retire the debt. Under current law, only
utility costs savings must be used to retire the debt.
Finally, under the bill, the Legislative Audit Bureau is requested to audit how
school boards use the energy efficiency revenue limit adjustment during the two
school years following the date on which the bill becomes law.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB494,1 1Section 1. 115.28 (4m) of the statutes is created to read:
SB494,3,22 115.28 (4m) Energy efficiency revenue limit adjustments. Publish on the
3department's Internet site each report received from a school board under s. 121.91

1(4) (o) 1h. The state superintendent shall publish information under this subsection
2in a sortable format.
SB494,2 3Section 2 . 121.91 (4) (o) 1. of the statutes is renumbered 121.91 (4) (o) 1. (intro.)
4and amended to read:
SB494,3,135 121.91 (4) (o) 1. (intro.) Except as provided in subd. 1m. and subject to subd.
61e.
, if a school board adopts a resolution to do so that includes a statement that the
7school board has considered and made a good faith effort to comply with the
8requirements of this paragraph
, the limit otherwise applicable to a school district
9under sub. (2m) in any school year is increased by the amount spent by the school
10district in that school year on a project to purchase or implement energy efficiency
11conservation measures or to purchase energy efficiency products, as defined in s.
1266.0133 (1) (a)
, including the payment of debt service on a bond or note issued, or a
13state trust fund loan obtained, to finance the project, if the all of the following apply:
SB494,3,15 14a. The project results in the avoidance of, or reduction in, energy costs or
15operational costs, the.
SB494,3,17 16b. The project is governed by a performance contract entered into under s.
1766.0133, and the.
SB494,3,21 18c. Any bond or note issued or state trust fund loan obtained to finance the
19project is issued for a term not exceeding 20 years, 80 percent of the useful life of the
20energy conservation measures, or 80 percent of the useful life of the facility at which
21the project is implemented, whichever is shorter
.
SB494,3,25 221c. If a school board issues a bond or note or obtains a state trust fund loan to
23finance a project described in this subdivision subd. 1., a resolution adopted by a
24school board under this subdivision subd. 1. is valid for each school year in which the
25school board pays debt service on the bond, note, or state trust fund loan.
SB494,3
1Section 3. 121.91 (4) (o) 1e. of the statutes is created to read:
SB494,4,62 121.91 (4) (o) 1e. At least 30 days before voting on a resolution under subd. 1.
3to exceed the school district's revenue limit, a school board shall hold a public hearing
4on the resolution. At least 10 days before the public hearing, the school board shall
5publish a class 1 notice, under ch. 985, of the public hearing. A school board shall
6include all of the following items in the agenda for the public hearing:
SB494,4,87 a. A detailed description of the project, including a description of the energy
8conservation measures to be purchased or implemented.
SB494,4,109 b. Each facility that will be impacted by the project, including each facility at
10which energy conservation measures will be used or installed.
SB494,4,1111 c. The projected principle cost of the energy conservation measures.
SB494,4,1212 d. The projected debt service cost of the energy conservation measures.
SB494,4,1313 e. The total cost of the energy conservation measures.
SB494,4,1514 f. The projected amount of time for the total energy or operational savings and
15avoided costs to exceed the total cost of the energy conservation measures.
SB494,4,1616 g. The projected useful life of the energy conservation measures.
SB494,4,1817 h. The projected useful life of each facility at which energy conservation
18measures will be made or installed.
SB494,4,2119 i. The utility cost savings and the operational cost savings attributable to the
20energy conservation measures. In calculating savings under this subd. 1e. i., a school
21board may not include savings related to avoiding secondary damage.
SB494,5,222 j. The avoided inflationary costs and the avoided operational productivity costs
23attributable to the energy conservation measures. In calculating avoided
24inflationary costs under this subd. 1e. j., a school board shall use a standard that is

1widely accepted in the midwest region to measure construction cost industry
2inflation.
SB494,4 3Section 4. 121.91 (4) (o) 1h. of the statutes is created to read:
SB494,5,54 121.91 (4) (o) 1h. A school board that passes a resolution under subd. 1. shall
5submit a report to the department that includes all of the following:
SB494,5,66 a. The name of the school district.
SB494,5,77 b. The board vote on the resolution.
SB494,5,108 c. The projected amount and percentage of the bond, note, or state trust fund
9loan obtained to finance the project that will be repaid from utility and operational
10cost savings.
SB494,5,1311 d. The projected amount and percentage of the bond, note, or state trust fund
12loan obtained to finance the project that will be repaid by increasing the property tax
13levy.
SB494,5,1414 e. The information under subd. 1e. a. to j.
SB494,5,1715 f. A certified statement signed by the school board president and the school
16district administrator that states that the school board considered and made a good
17faith effort to comply with the requirements under this paragraph.
SB494,5 18Section 5. 121.91 (4) (o) 3. of the statutes is amended to read:
SB494,5,2219 121.91 (4) (o) 3. If a school district issues a bond or note or obtains a state trust
20fund loan to finance a project described in subd. 1. and the school district's utility or
21operational
costs are measurably reduced as a result of the project, the school board
22shall use the savings to retire the bond, note, or state trust fund loan.
SB494,6 23Section 6. 121.91 (4) (o) 4. of the statutes is amended to read:
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