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LRB-0750/1
KP&EHS:wlj
2021 - 2022 LEGISLATURE
March 10, 2022 - Introduced by Representative Shankland, cosponsored by
Senator Smith. Referred to Committee on Energy and Utilities.
AB1117,2,2 1An Act to amend 7.33 (1) (c), 13.172 (1), 13.62 (2), 13.94 (4) (a) 1., 13.95 (intro.),
216.002 (2), 16.004 (4), 16.004 (5), 16.004 (12) (a), 16.01 (1), 16.045 (1) (a), 16.41
3(4), 16.417 (1) (b), 16.52 (7), 16.528 (1) (a), 16.53 (2), 16.54 (9) (a) 1., 16.70 (2),
416.75 (1m), 16.765 (1), 16.765 (2), 16.765 (5), 16.765 (6), 16.765 (7) (intro.),
516.765 (7) (d), 16.765 (8), 16.838 (1) (b), 16.85 (2), 16.865 (8), 23.175 (1) (b), 71.26
6(1) (be), 77.54 (9a) (a), 100.45 (1) (dm), 106.16 (2), 106.16 (3), 230.03 (3), 238.10
7(1), 281.75 (4) (b) 3., 285.59 (1) (b) and 706.11 (1) (c) 2.; and to create 13.94 (1)
8(w), 19.42 (10) (qm), 20.498, 25.17 (3) (b) 14., 40.02 (54) (k), 66.0603 (1m) (a) 3v.,
970.11 (38o), 71.05 (1) (c) 7m., 71.26 (1m) (p), 71.45 (1t) (o), 219.09 (1) (h), chapter
10235 and 600.01 (1) (b) 8m. of the statutes; relating to: creating the Wisconsin
11Renewable Energy Development Authority to participate in and guarantee

1certain energy-related loans, implement other energy-related programs, and
2make certain grants and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates the Wisconsin Renewable Energy Development Authority and
authorizes WREDA to implement programs for developing renewable resources,
reducing energy consumption, and improving energy efficiency. An authority is a
public body created by state law that is not a state agency. Under this bill, the board
of directors of WREDA consists of 11 members. Five members of the board are
appointed by the governor with the advice and consent of the senate to four-year
terms. One of those members must be a commercial lender and four must represent
“eligible businesses," as defined in the bill and discussed below. The other members
are the following or their designees: the secretary of natural resources; the secretary
of agriculture, trade and consumer protection; the chief executive officer of the
Wisconsin Economic Development Corporation; the chair of the public service
commission; the dean of the University of Wisconsin-Madison College of Agriculture
and Life Sciences; and the director of the Wisconsin Alumni Research Foundation.
The board must appoint an executive director and, subject to a maximum limit,
determine the executive director's compensation.
The bill authorizes WREDA to issue bonds to carry out its functions, except that
WREDA may generally have no more than $500,000,000 in outstanding bonds at any
time. WREDA's bonds are not state debt. The bill creates an individual and
corporate income tax exemption for interest on bonds issued by WREDA. Also,
WREDA's purchases are exempt from sales tax. The bill also makes an appropriation
from the general fund to WREDA and requires WREDA to enter into an agreement
with the secretary of administration for repaying the appropriation from any
surpluses.
Because WREDA is not a state agency, numerous requirements that apply to
state agencies do not apply to WREDA. However, the bill treats WREDA like a state
agency for the purpose of specified requirements, including the following: 1) WREDA
is subject to the open meetings laws; 2) WREDA is subject to auditing by the
Legislative Audit Bureau; 3) WREDA is treated like a state agency for purposes of
requirements regarding lobbying; 4) the code of ethics for public officials and
employees applies to WREDA; and 5) employees of WREDA are considered state
employees for the purposes of state retirement benefits and health insurance
coverage. WREDA is also subject to the open records law, except that personal and
financial information provided by a person seeking financial assistance from
WREDA is confidential.
As discussed below, the bill allows WREDA to implement programs for
participating in loans, guaranteeing loans, and making grants. The bill also allows
WREDA to implement other programs.
Loan participation. The bill allows WREDA to participate in loans made by
lenders to eligible borrowers. The bill defines “eligible borrower" as an individual

residing in this state, or a partnership or corporation operating in this state, who
demonstrates a need for a loan for one of the following: 1) capital or operating
expenses of an eligible business or 2) any expenses of an eligible project. An “eligible
business" is defined as a commercial entity that either 1) produces energy, fuels,
chemicals, or products primarily from renewable resources or agricultural, forestry,
plant, or other biological materials or 2) provides services related to reducing energy
consumption or improving energy efficiency. “Eligible project" is defined as a project
for reducing energy consumption or improving energy efficiency of a commercial
entity. In addition, the project must involve constructing any new plant, equipment,
property, or facilities or extending, improving, or adding to an existing plant,
equipment, property, or facilities. To qualify as an “eligible borrower," a person must
demonstrate the ability to repay a loan. In addition, if the borrower is an individual,
he or she must be in compliance with any applicable child support and related
requirements.
The bill limits WREDA's participation in a loan to financing not more than 50
percent or $25,000,000, whichever is less, of the principal of the loan. In addition,
the lender must apply to WREDA for approval and enter into a participation
agreement with WREDA. Also, WREDA must ensure that it obtains a security
interest for the loan. The bill specifies other requirements, including requirements
for collateral, length of terms, and fees, and allows WREDA to adopt guidelines and
policies for loan participation.
Loan guarantees. The bill allows WREDA to establish programs with lenders
for guaranteeing repayment of loans for financing either 1) capital or operating
expenses of eligible businesses or 2) expenses of eligible projects. “Eligible business"
and “eligible project" are defined as described above. A loan is eligible for guarantee
if the borrower does not meet the lender's minimum standards of creditworthiness.
Also, new or expanded business must result for the commercial entity whose eligible
business or project is the subject of the loan. In addition, if the borrower is an
individual, he or she must be in compliance with any applicable child support and
related requirements. The bill allows WREDA to guarantee repayment of not more
than 90 percent of the principal of a loan. Other requirements apply to interest rates,
security interests, length and extension of terms, business insurance, origination
fees, refinancing, and guarantee agreements between WREDA and lenders. Also,
the total outstanding amount of all loans to a borrower may not exceed $25,000,000
or a lesser amount determined by WREDA.
The bill establishes a Wisconsin clean and renewable energy reserve fund
under WREDA's control, which is used for the guarantees described above. The bill
prohibits WREDA from using any other moneys for the guarantees. WREDA may
deposit into the reserve fund an amount that it determines from the appropriation
the bill makes to WREDA from the general fund. The reserve fund also consists of
income from WREDA's investment of reserve fund moneys, loan guarantee
origination fees, and moneys received from other sources. In addition, the bill
expresses the legislature's expectation that it will make appropriations to meet
demands for funds guaranteed by the reserve fund. The bill generally limits WREDA
to guaranteeing no more than $25,000,000 in total loans, except that the bill allows

the Joint Committee on Finance to increase or decrease that limit. The bill also
requires WREDA to ensure that the cash balance in the reserve fund is sufficient for
the following purposes: 1) paying outstanding claims and 2) maintaining a ratio of
$1 of reserve funding to $4.50 of total outstanding guarantees. If the cash balance
exceeds the amount required for those purposes, the bill requires WREDA annually
to transfer the excess to the general fund.
Grant program. The bill authorizes WREDA to make grants to eligible
businesses and projects, as defined above, as well as to persons engaged in the
commercialization of biological fuel, power, or products. WREDA must adopt
guidelines for making the grants. The guidelines must provide for a committee to
make determinations regarding grants, and the committee must consist of the
secretary of agriculture, trade and consumer protection, the secretary of natural
resources, and the chief executive officer of the Wisconsin Economic Development
Corporation. The guidelines may also allow the committee to make the grants on
behalf of WREDA.
Other programs. The bill allows WREDA to implement the following to
promote eligible businesses and projects, as defined above: 1) a revolving loan fund
program to finance eligible businesses or projects; 2) an equity financing program for
renewable energy generation businesses of agricultural producers; 3) a trading
program for environmental credits related to clean and renewable energy
production; 4) a technical assistance program for eligible businesses and certain
community-based projects; and 5) a program for WREDA to obtain licenses and
royalties on technologies developed with the assistance of WREDA.
School and higher education funding. The bill provides additional funding
for special education aid for school districts, independent charter schools,
cooperative educational service agencies, and county children with disabilities
education boards, additional funding for the University of Wisconsin System under
its general program operations appropriation, and additional funding for state aids
for technical colleges for purposes of maintaining compliance with maintenance of
effort requirements of the federal Consolidated Appropriations Act and the federal
American Rescue Plan Act.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state 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:
AB1117,1 1Section 1. 7.33 (1) (c) of the statutes is amended to read:
AB1117,5,3
17.33 (1) (c) “State agency" has the meaning given under s. 20.001 (1) and
2includes an authority created under subch. II of ch. 114 or ch. 231, 232, 233, 234, 235,
3or 237.
AB1117,2 4Section 2 . 13.172 (1) of the statutes is amended to read:
AB1117,5,105 13.172 (1) In this section, “agency" means an office, department, agency,
6institution of higher education, association, society, or other body in state
7government created or authorized to be created by the constitution or any law, that
8is entitled to expend moneys appropriated by law, including the legislature and the
9courts, and any authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 235,
10238, or 279.
AB1117,3 11Section 3 . 13.62 (2) of the statutes is amended to read:
AB1117,5,1512 13.62 (2) “Agency" means any board, commission, department, office, society,
13institution of higher education, council, or committee in the state government, or any
14authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 235, 237, 238,
15or 279, except that the term does not include a council or committee of the legislature.
AB1117,4 16Section 4 . 13.94 (1) (w) of the statutes is created to read:
AB1117,5,1917 13.94 (1) (w) Annually conduct a financial audit of the Wisconsin Renewable
18Energy Development Authority. The legislative audit bureau shall file a copy of each
19audit report under this paragraph with the distributees specified in par. (b).
AB1117,5 20Section 5 . 13.94 (4) (a) 1. of the statutes is amended to read:
AB1117,6,1221 13.94 (4) (a) 1. Every state department, board, examining board, affiliated
22credentialing board, commission, independent agency, council or office in the
23executive branch of state government; all bodies created by the legislature in the
24legislative or judicial branch of state government; any public body corporate and
25politic created by the legislature including specifically the Fox River Navigational

1System Authority, the Lower Fox River Remediation Authority, the Wisconsin
2Aerospace Authority, the Wisconsin Renewable Energy Development Authority, the
3Wisconsin Economic Development Corporation, a professional baseball park district,
4a local professional football stadium district, a local cultural arts district and a
5long-term care district under s. 46.2895; every Wisconsin works agency under subch.
6III of ch. 49; every provider of medical assistance under subch. IV of ch. 49; technical
7college district boards; every county department under s. 51.42 or 51.437; every
8nonprofit corporation or cooperative or unincorporated cooperative association to
9which moneys are specifically appropriated by state law; and every corporation,
10institution, association or other organization which receives more than 50 percent
11of its annual budget from appropriations made by state law, including subgrantee or
12subcontractor recipients of such funds.
AB1117,6 13Section 6 . 13.95 (intro.) of the statutes is amended to read:
AB1117,7,2 1413.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
15known as the “Legislative Fiscal Bureau" headed by a director. The fiscal bureau
16shall be strictly nonpartisan and shall at all times observe the confidential nature
17of the research requests received by it; however, with the prior approval of the
18requester in each instance, the bureau may duplicate the results of its research for
19distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
20designated employees shall at all times, with or without notice, have access to all
21state agencies, the University of Wisconsin Hospitals and Clinics Authority, the
22Wisconsin Aerospace Authority, the Wisconsin Renewable Energy Development
23Authority,
the Lower Fox River Remediation Authority, the Wisconsin Economic
24Development Corporation, and the Fox River Navigational System Authority, and to

1any books, records, or other documents maintained by such agencies or authorities
2and relating to their expenditures, revenues, operations, and structure.
AB1117,7 3Section 7 . 16.002 (2) of the statutes is amended to read:
AB1117,7,84 16.002 (2) “Departments" means constitutional offices, departments, and
5independent agencies and includes all societies, associations, and other agencies of
6state government for which appropriations are made by law, but not including
7authorities created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 235, 237, 238,
8or 279.
AB1117,8 9Section 8 . 16.004 (4) of the statutes is amended to read:
AB1117,7,1510 16.004 (4) Freedom of access. The secretary and such employees of the
11department as the secretary designates may enter into the offices of state agencies
12and authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 235,
13237, 238, and 279, and may examine their books and accounts and any other matter
14that in the secretary's judgment should be examined and may interrogate the
15agency's employees publicly or privately relative thereto.
AB1117,9 16Section 9 . 16.004 (5) of the statutes is amended to read:
AB1117,7,2017 16.004 (5) Agencies and employees to cooperate. All state agencies and
18authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 235, 237,
19238, and 279, and their officers and employees, shall cooperate with the secretary
20and shall comply with every request of the secretary relating to his or her functions.
AB1117,10 21Section 10 . 16.004 (12) (a) of the statutes is amended to read:
AB1117,8,422 16.004 (12) (a) In this subsection, “state agency" means an association,
23authority, board, department, commission, independent agency, institution, office,
24society, or other body in state government created or authorized to be created by the
25constitution or any law, including the legislature, the office of the governor, and the

1courts, but excluding the University of Wisconsin Hospitals and Clinics Authority,
2the Wisconsin Aerospace Authority, the Wisconsin Renewable Energy Development
3Authority,
the Lower Fox River Remediation Authority, the Wisconsin Economic
4Development Corporation, and the Fox River Navigational System Authority.
AB1117,11 5Section 11. 16.01 (1) of the statutes is amended to read:
AB1117,8,116 16.01 (1) In this section, “agency" means any office, department, agency,
7institution of higher education, association, society or other body in state
8government created or authorized to be created by the constitution or any law which
9is entitled to expend moneys appropriated by law, including the legislature and the
10courts, and any authority created under subch. II of ch. 114 or ch. 231, 233 or, 234,
11or 235
.
AB1117,12 12Section 12 . 16.045 (1) (a) of the statutes is amended to read:
AB1117,8,1813 16.045 (1) (a) “Agency" means an office, department, independent agency,
14institution of higher education, association, society, or other body in state
15government created or authorized to be created by the constitution or any law, that
16is entitled to expend moneys appropriated by law, including the legislature and the
17courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 232,
18233, 234, 235, 237, 238, or 279.
AB1117,13 19Section 13 . 16.41 (4) of the statutes is amended to read:
AB1117,8,2120 16.41 (4) In this section, “authority" means a body created under subch. II of
21ch. 114 or under ch. 231, 233, 234, 235, 237, 238, or 279.
AB1117,14 22Section 14 . 16.417 (1) (b) of the statutes is amended to read:
AB1117,8,2423 16.417 (1) (b) “Authority" means a body created under subch. II of ch. 114 or
24ch. 231, 232, 233, 234, 235, 237, 238, or 279.
AB1117,15 25Section 15 . 16.52 (7) of the statutes is amended to read:
AB1117,9,10
116.52 (7) Petty cash account. With the approval of the secretary, each agency
2that is authorized to maintain a contingent fund under s. 20.920 may establish a
3petty cash account from its contingent fund. The procedure for operation and
4maintenance of petty cash accounts and the character of expenditures therefrom
5shall be prescribed by the secretary. In this subsection, “agency" means an office,
6department, independent agency, institution of higher education, association,
7society, or other body in state government created or authorized to be created by the
8constitution or any law, that is entitled to expend moneys appropriated by law,
9including the legislature and the courts, but not including an authority created in
10subch. II of ch. 114 or in ch. 231, 233, 234, 235, 237, 238, or 279.
AB1117,16 11Section 16 . 16.528 (1) (a) of the statutes is amended to read:
AB1117,9,1712 16.528 (1) (a) “Agency" means an office, department, independent agency,
13institution of higher education, association, society, or other body in state
14government created or authorized to be created by the constitution or any law, that
15is entitled to expend moneys appropriated by law, including the legislature and the
16courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 233,
17234, 235, 237, 238, or 279.
AB1117,17 18Section 17 . 16.53 (2) of the statutes is amended to read:
AB1117,9,2519 16.53 (2) Improper invoices. If an agency receives an improperly completed
20invoice, the agency shall notify the sender of the invoice within 10 working days after
21it receives the invoice of the reason it is improperly completed. In this subsection,
22“agency" means an office, department, independent agency, institution of higher
23education, association, society, or other body in state government created or
24authorized to be created by the constitution or any law, that is entitled to expend
25moneys appropriated by law, including the legislature and the courts, but not

1including an authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 235, 237,
2238, or 279.
AB1117,18 3Section 18 . 16.54 (9) (a) 1. of the statutes is amended to read:
AB1117,10,94 16.54 (9) (a) 1. “Agency" means an office, department, independent agency,
5institution of higher education, association, society or other body in state
6government created or authorized to be created by the constitution or any law, which
7is entitled to expend moneys appropriated by law, including the legislature and the
8courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 233,
9234, 235, 237, 238, or 279.
AB1117,19 10Section 19 . 16.70 (2) of the statutes is amended to read:
AB1117,10,1211 16.70 (2) “Authority" means a body created under subch. II of ch. 114 or under
12ch. 231, 232, 233, 234, 235, 237, or 279.
AB1117,20 13Section 20 . 16.75 (1m) of the statutes is amended to read:
AB1117,11,214 16.75 (1m) The department shall award each order or contract for materials,
15supplies or equipment on the basis of life cycle cost estimates, whenever such action
16is appropriate. Each authority other than the University of Wisconsin Hospitals and
17Clinics Authority, the Lower Fox River Remediation Authority, and the Wisconsin
18Aerospace Authority, and the Wisconsin Renewable Energy Development Authority
19shall award each order or contract for materials, supplies or equipment on the basis
20of life cycle cost estimates, whenever such action is appropriate. The terms,
21conditions and evaluation criteria to be applied shall be incorporated in the
22solicitation of bids or proposals. The life cycle cost formula may include, but is not
23limited to, the applicable costs of energy efficiency, acquisition and conversion,
24money, transportation, warehousing and distribution, training, operation and
25maintenance and disposition or resale. The department shall prepare documents

1containing technical guidance for the development and use of life cycle cost
2estimates, and shall make the documents available to local governmental units.
AB1117,21 3Section 21 . 16.765 (1) of the statutes is amended to read:
AB1117,11,144 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
5Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
6Aerospace Authority, the Wisconsin Renewable Energy Development Authority, the
7Lower Fox River Remediation Authority, the Wisconsin Economic Development
8Corporation, and the Bradley Center Sports and Entertainment Corporation shall
9include in all contracts executed by them a provision obligating the contractor not
10to discriminate against any employee or applicant for employment because of age,
11race, religion, color, handicap, sex, physical condition, developmental disability as
12defined in s. 51.01 (5), sexual orientation as defined in s. 111.32 (13m), or national
13origin and, except with respect to sexual orientation, obligating the contractor to take
14affirmative action to ensure equal employment opportunities.
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