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STATE SUPERINTENDENT OF PUBLIC INSTRUCTION
ADOPTING PERMANENT RULES
The scope statement for this rule, SS 055-15, was published in Register No. 715A2 on July 13, 2015, and approved by State Superintendent Tony Evers on July 24, 2015, and modifies SS 083-13, which was published in Register No. 691 on July 31, 2013, and approved by State Superintendent Tony Evers on August 15, 2013. Pursuant to Coyne v. Walker, the Department of Public Instruction is not required to obtain the Governor’s approval for the statement of scope for this rule. Coyne v. Walker, 2015 WI App 21, 361 Wis. 2d 255.
The State Superintendent of Public Instruction hereby proposes to repeal ss. PI 15.03 (8), and 15.04 (5); to amend ss. PI 15.01, 15.02 (2), 15.03 (1), 15.03 (2) (b), 15.03 (3) (intro.), (b), (c), and (d), 15.03 (7), PI 15.04 (3) and (4), and PI 15 Appendix A; to repeal and recreate s. PI 15.04 (4); and to create ss. PI 15.03 (2) (c) (Note), (3) (f), and (g), and PI 15.04 (2m); relating to revenue limit exemptions for energy efficiencies.
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ANALYSIS BY THE DEPARTMENT OF PUBLIC INSTRUCTION
Statute interpreted: s. 121.91 (4) (o), Stats.
Statutory authority: ss. 227.10 (1), and 227.11 (2) (a) and (b), Stats.
Explanation of agency authority:
The Department of Public Instruction (Department) believes administrative rules are necessary to effectuate the purpose of the underlying statute and for the state to administer the energy efficiency revenue limit exemption in a fair and consistent manner under s. 227.11 (2) (a), Stats. The Department also believes that a rule is required to prescribe the forms and procedures in connection with the statute as dictated in s. 227.11 (2) (b), Stats. Further, under s. 227.10 (1), Stats., the Department is required to promulgate as a rule each statement of general policy and each interpretation of a statute which it specifically adopts to govern its administration of that statute. As expressed in public comment, both with the currently proposed and the past versions of the rule, the statutory requirements do not specify the manner in which the statutes need to be met. As such, the Department believes it is imperative to standardize the manner in which school districts that utilize the energy efficiency revenue limit exemption under s. 121.91 (4) (o), Stats., demonstrate compliance with the statutes.
Related statute or rule: N/A.
Plain language analysis:
The proposed rule will align PI 15 with current statute, which was modified by 2011 Wisconsin Act 32 and 2013 Wisconsin Act 20.
State law authorizes a school board to adopt a resolution to exceed the district revenue limit if the energy efficiency project is governed by a performance contract. The proposed rule provides a mechanism for districts to demonstrate compliance with state law via reporting the details of the required performance contract. State law requires a school board to use utility savings from the energy efficiency projects to retire district debt. The rule provides a uniform mechanism to ensure compliance with state law.
Before passing an energy efficiency exemption resolution a school board must enter into a performance contract under s. 66.0133, Stats. A properly executed performance contract will provide the board with the information required for the resolution. The Department provides a sample resolution and a table for districts to use to collect the required information to list each energy efficiency measure/product with related cost recovery performance indicators, estimated cost, and estimated savings and payback period.
A school board may adopt a resolution to increase the revenue limit otherwise applicable to a school district under s. 121.91 (2m), Stats., in any school year by an amount spent by the school district in that school year on a project to implement energy efficiency measures or to purchase energy efficiency products. Districts may use this non-recurring exemption to the revenue limit to pay for an energy efficiency project in a single year or to repay a note, bond, or loan used to finance the project.
Summary of, and comparison with, existing or proposed federal regulations: N/A
Comparison with rules in adjacent states: N/A
Summary of factual data and analytical methodologies: N/A
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report: N/A
Anticipated costs incurred by private sector: N/A
Effect on small business:
The proposed rules will have no economic impact on small businesses, as defined in s. 227.114 (1) (a), Stats.
Agency contact person: (including email and telephone)
Carl Bryan
Budget and Policy Analyst
Wisconsin Department of Public Instruction
(608) 267-9127
Place where comments are to be submitted and deadline for submission:
Comments should be submitted to Carl Bryan, Department of Public Instruction, 125 S. Webster Street, P.O. Box 7841, Madison, WI 53707-7841 or at Carl.Bryan@dpi.wi.gov. Comments must be received on or before December 2, 2015 to be included in the record of rule-making proceedings.
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SECTION 1. PI 15.01 is amended to read:
PI 15.01 Purpose. A school board may not exceed its revenue limit under s. 121.91 (2m), Stats., except as allowed under s. 121.91 (3), (4), and (8), Stats. This chapter sets forth eligibility criteria and procedures for allowing revenue limit exemptions for energy efficiency measures, and renewable energy efficiency products as allowed under s. 121.91 (4) (o), Stats.
SECTION 2. PI 15.02 (2) is amended to read:
(2)"Expenditure" or "expenditures" means the amount spent or planned to be spent by the school district in a school year on energy efficiency measures, and renewable energy efficiency products that result in the avoidance of, or reduction in, energy costs or related operational costs. “Expenditure” does not include amounts spent for the purchase of one-to-one instructional technology devices.
SECTION 3. PI 15.03 (1) and (2) (b) are amended to read:
(1)Under s. 121.91 (4) (o), Stats., if a school board adopts a resolution to do so, the revenue limit otherwise applicable to a school district under s. 121.91 (2m), Stats., in any school year is increased by the amount spent expenditure by the school district in that school year on energy efficiency measures, and renewable energy efficiency products, that result in the avoidance of, or reduction in, energy costs. Districts may retrofit, replace or update existing equipment or improve facilities if such improvements result in the avoidance of, or reduction in, energy costs or related operational costs. Expenditures for the expansion of facilities or the addition of equipment are not allowed unless they are necessary to improve the efficiency of the existing facility.
(2)
(b) Identify the performance indicators to measure the cost savings as a result of the expenditures. The cost savings must equal or exceed the expenditures.
SECTION 4. PI 15.03 (2) (c) (Note) is created to read:
Note: To comply with these provisions, the school district may use the reporting form prescribed by the department. The form can be obtained by contacting the School Financial Services Team at (608) 267-9114.
SECTION 5. PI 15.03 (3) (intro.), (b), (c), and (d) are amended to read:
(3) A resolution under this section shall be passed by NovemberOctober 1 in the school year in which a tax is to be levied for the expenditure. The resolution shall and include all of the following information:
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