SB111,1305,20 2. Defraying the cost of participating in proceedings involving rates or practices of municipal utilities and no other public utilities.

SB111,1305,23 (c) The consumer advocate shall retain all relevant records supporting its expenditure of funds provided under par. (a) for 3 years after receipt of the funds and shall grant the commission access to the records upon request.

SB111,1306,2 (4) Cost recovery. (a) Rate-making orders. The commission shall ensure in rate-making orders that an energy utility recovers from its residential, small commercial, and small industrial customers the amounts the energy utility pays under sub. (3) (a).

SB111,1306,4 (b) Accounting. The commission shall apply escrow accounting treatment to expenditures required under this section.

SB111,1306,6 (5) Budget review; approval. (a) The commission shall review the budgeting and expenditure of funds provided to the consumer advocate under sub. (3) (a).

SB111,1306,12 (b) Annually, by a date specified by the commission, the consumer advocate shall file for the commission's approval an annual budget as approved by the consumer advocate's board of directors. The commission may request additional information from the consumer advocate related to the budget, and may consider any relevant factors, including existing operating reserves and actual costs in prior years compared to the budgets approved by the commission.

SB111,1306,20 (c) The commission shall approve a budget filed under this subsection if the commission determines it is consistent with sub. (1) and covers the reasonable annual costs of the consumer advocate, including salaries, benefits, overhead expenses, the maintenance of an operating reserve, and any other cost directly or indirectly related to representing and protecting the interests of residential, small commercial, and small industrial energy utility customers. The commission may approve the budget with such conditions and modifications as the commission determines are necessary.

SB111,1306,23 (d) If the commission fails to take final action under par. (c) within 60 days after a budget is filed with the commission, the commission is considered to have approved the budget that was submitted by the consumer advocate.

SB111,1307,3 (e) Subject to sub. (3) (a), the total amount of the approved budget shall be paid to the consumer advocate by the energy utilities. Each energy utility's share of the total amount shall be based on the energy utility's proportionate share of the total number of residential, small commercial, and small industrial customer meters reported by energy utilities under s. 196.07 (1).

SB111,2410 Section 2410 . 196.374 (1) (gm) of the statutes is created to read:

SB111,1307,6 196.374 (1) (gm) “Low-income household” has the meaning given in s. 16.957 (1) (m).

SB111,2411 Section 2411 . 196.374 (2) (a) 1. of the statutes is amended to read:

SB111,1307,15 196.374 (2) (a) 1. The energy utilities in this state shall collectively establish and fund statewide energy efficiency and renewable resource programs , including programs for low-income households. The energy utilities shall contract, on the basis of competitive bids, with one or more persons to develop and administer the programs. The utilities may not execute a contract under this subdivision unless the commission has approved the contract. The commission shall require each energy utility to spend the amount required under sub. (3) (b) 2. to fund statewide energy efficiency and renewable resource programs.

SB111,2412 Section 2412 . 196.374 (2) (a) 2. f. of the statutes is created to read:

SB111,1307,20 196.374 (2) (a) 2. f. Components to promote energy efficiency and renewable energy measures for low-income households in this state and initiatives and market strategies to address the energy needs and decrease the energy burden of low-income households.

SB111,2413 Section 2413 . 196.374 (2) (a) 2m. of the statutes is created to read:

SB111,1308,2 196.374 (2) (a) 2m. The programs under this paragraph may include activities advertising the availability of loans under s. 66.0627 (8) for making or installing energy efficiency improvements, as defined in s. 66.0627 (1) (am), water efficiency improvements, as defined in s. 66.0627 (1) (d), or renewable resource applications to premises.

SB111,2414 Section 2414 . 196.374 (3) (b) 1. of the statutes is amended to read:

SB111,1308,13 196.374 (3) (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 commission shall give priority to programs that moderate the growth in electric and natural gas demand and usage, facilitate markets and assist market providers to achieve higher levels of energy efficiency, promote energy reliability and adequacy, promote energy efficiency and renewable energy measures for low-income households, avoid adverse environmental impacts from the use of energy, and promote rural economic development.

SB111,2415 Section 2415 . 196.374 (3) (b) 2. of the statutes is amended to read:

SB111,1308,20 196.374 (3) (b) 2. The commission shall require each energy utility to spend 1.2 2.4 percent of its annual operating revenues derived from retail sales to fund the utility's programs under sub. (2) (b) 1., the utility's ordered programs, the utility's share of the statewide energy efficiency and renewable resource programs under sub. (2) (a) 1., and the utility's share, as determined by the commission under subd. 4., of the costs incurred by the commission in administering this section.

SB111,2416 Section 2416 . 196.374 (3) (f) 5. of the statutes is created to read:

SB111,1308,24 196.374 (3) (f) 5. Minimum requirements for energy efficiency and renewable resource programs under sub. (2) (a) 1. for low-income households and eligibility requirements for programs for low-income households.

SB111,2417 Section 2417 . 196.376 of the statutes is created to read:

SB111,1309,6 196.376 Residential energy improvement program. The commission may establish and implement a program under which a public utility may finance energy improvements at a specific dwelling and recover the cost of those improvements over time through a surcharge periodically placed on the public utility's customer account for that dwelling. If the commission establishes such a program, it shall promulgate rules to implement the program.

SB111,2418 Section 2418 . 196.379 of the statutes is created to read:

SB111,1309,9 196.379 Voluntary innovative technology programs. (1) In this section, “energy utility” has the meaning given in s. 196.374 (1) (e).

SB111,1309,13 (2) (a) An energy utility may, with commission approval, administer or fund a voluntary innovative technology program. An energy utility may pay for a program under this subsection through rate charges to customers of the energy utility, as approved by the commission, or by another method approved by the commission.

SB111,1309,15 (b) The commission shall promulgate rules related to implementing a program under this subsection.