PROPOSED ORDER OF THE
STATE SUPERINTENDENT OF PUBLIC INSTRUCTION
ADOPTING EMERGENCY
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 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 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
, No. 2013AP416, 2015 WL 686178 (Wis. Ct. App. Feb. 19, 2015).
The State S
uperintend
ent of Public I
nstr
uction 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 c
reate
ss.
PI 15.03 (3)
(c)
Note,
(f)
,
and
(g), and PI 15.04 (2m);
relating to
revenue limit exemptions for energy efficiencies.
__________________________________________________________________________________________________
ANALYSIS BY THE DEPARTMENT OF PUBLIC INSTRUCTION
Explanation of agency authority:
Under s.
227.11
(2)
(a)
(intro
.
)
, Stats., “Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation.” As such, a rule is required to effectively implement and provide transparency to the revenue limit exemptions for energy efficiencies under s.
121.91
(4)
(o)
, Stats.
Related statute or rule:
N/A.
Plain language analysis:
2011 Wisconsin Act 32
and
2013 Wisconsin Act 20
provided that the revenue limit for that school year is increased by the amount spent by the school district in that school year on a project to implement energy efficiency measures or to purchase energy efficiency products including the p
ayment of debt service on a bond or note
issued
or a state trust fund loan obtained,
to finance the project if the project results in the avoidance of, or reduction in, energy costs or operational costs; the project is governed by a performance contract entered into under s.
66.0133
; and the
bond or note or state trust fund loan obtained
issued to
finance the project is
issued for periods not exceeding 20 years. If a school board issues
a bond or note or obtains a state trust fund loan
to finance a project, a resolution adopted by a school board is valid for each school year in which the school board pays debt service on t
he bond, note, or state trust fund loan. However,
2011 Wisconsin Act 32
eliminated the
revenue limit
exemption
for money spent on renewable energy products.
Additionally,
2013 Wisconsin Act 20
provided that if a school district issues a bond or note or obtains a state trust fund loan to finance a project, the amount of debt service included in the amount spent by school districts for the purposes of the revenue limit exemption is the amount paid in the calendar year that begins on January 1 of the school year in which the school district’s revenue is increased.
If a school district issues a bond or note or obtains a state trust fund loan to finance a project and the school district’s utility costs are measurably reduced as a result of the project, the school board must use the savings to retire the bond, note, or state trust fund loan.
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 busine
ss:
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
. The Department will publish a hearing notice in the
Administrative Register
which will provide information on the deadline for the submission of comments.
___________________________________________________________________________________________
_______
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:
PI 15.02(2
(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:
PI 15.03(1
)
(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 it is necessary to improve the efficiency of the existing facility.
(2)
PI 15.03(2)(b)
(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.
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 November 1 in the school year in which a tax is to be levied for the expenditure. The resolution shall
include the following information:
PI 15.03(3)(b)
(b)
A statement that the school district is exercising its taxing authority under s.
121.91 (4) (o)
, Stats., to exceed the revenue limit on a non-recurring basis by an amount the school district will spend on new energy efficiency measures and
renewable
energy
efficiency
products for the
current
applicable
school year.
PI 15.03(3)(c)
(c)
The amount to be
levied and
expended
in accordance with s.
121.91
(4)
(o)
1.
or
1m
.
, Stats
.
PI 15.03(3)(d)
(d)
A list of the cost recovery performance indicators that will measure the cost savings of each
project’s
expenditure in an amount equal to the exemption request
,
estimated cost, estimated savings, and
including
the timeline for cost recovery for each
project
expenditure.
PI 15.03(3)(e)
SE
CTION 6
. PI 15.03 (3) (f) and (g) are created to read:
(f)
The funding mechanism to be used which meets the requirements of s.
121.91(4
)(
o)
1, Stats.
(g)
Identify the contract entered into that governs the project and certify compliance with the performance contracting requirements under s.
66.0133
, Stats.
SECTION
7
. PI 15.03 (7) is amended to read:
(7
)
Annually, no later than two weeks following the date of the school district's budget hearing, the school board shall submit
to the department the contents
of the addendum to the school district's published budget summary under s.
65.90
, Stats. In addition to the resolution, the addendum shall include an evaluation of the performance measures, including the energy cost savings achieved as a result of the school district's
expenditure.
the
amount of utility savings per 121.91(4)(o)3, Stats
.,
on a form and in the manner prescribed by the department
. The school board shall also include the information in this subsection in the school district's newsletter or in the published minutes of the school board meeting.
PI 15.03(8
)
SECTION 8
. PI 15.03 (8) is repealed.
SECTION 9
. PI 15.04 (2m) is created to read:
(2m)
The department shall reduce the school district’s exemption for energy efficiencies by the annual utility cost savings under s.
121.91(4
)(
o)
3, Stats.
SECTION 10
. PI 15.04 (3)
is
amended to read:
PI 15.04(3
)
(3)
The department shall post on its website the
addendum contents
information
received under s.
PI 15.03 (7)
.
SECTION 11. PI 15.04 (4) is repealed and recreated to read:
PI 15.04(4)
(4)
The department shall reduce the following year's revenue limit by the amount of any additional revenue received
as a result of this
exemption.
Any
additional revenue received by a school district under this paragraph shall not be included in the base for determining the school district's limit under s. 121.91 (2m), Stats., for the succeeding school year. In addition, the limit otherwise applicable to a school d
istrict in any
school year is decreased by an amount equal to the prior year amount
levied for which there is not a prior year
documented energy expenditure. The amount of the decrease shall not be deducted from the base for determining the school district’s limit under s.
121.91 (2m)
, Stats.
for
the following school year.
SECTION 12
.
PI 15.04 (5) is repealed.
SECTION 13
.
PI 15 Appendix A is amended to read:
Be it resolved that the school district of ____________ is exercising its taxing authority under s.
121.91 (4) (o)
,
Wis. Stats., to exceed the revenue limit on a non-recurring basis by an amount the district will spend on new energy efficiency measures and
renewable
energy
efficiency
products for the
_
(
insert pertaining school year)
_ school
year
and
[specify number] years of debt
for the term of the [specify bond, note, or state trust fund loan]
.
The amount to be
levied and
expended
is $______.
:
[I
nsert the following information
indicating the amount to be expended for each school year for the project. Add lines for each year of the debt]
School Year
Amount
20xx-20xx
$
After review of the recommendations report per 66.0133(2
)(
b) the district has determined that the $____________ it would spend on energy efficiency projects recommended in the report is not likely to exceed the amount to be saved in utility costs of $______________and non-utility
costs of $_____________over the remaining ______year useful life of the facility to which the measures apply.
The board has entered into a
(enter number)
year performance contract
under s.
66.0133
,
Stats.,
with
(enter contractor name) for a project to implement the following energy efficiency measures or purchase energy efficiency products and identified the following cost recovery performance indicators to measure energy savings and/or operational savings for each including the
timeline for cost recovery:
(List each energy efficiency measure/ product with related cost recovery performance indicators, estimated cost, estimated savings and payback period)
The Board shall annually perform an evaluation of the performance indicators and shall report to the electorate as an addendum in the required published budget summary document per s.
65.90
, Wis. Stats., and in the school district’s newsletter or in the published minutes of the school board meeting. The Board shall use this evaluation to determine the amount of energy (utility) cost savings, as a result of the project, that shall be applied to retire the debt.
The board has identified the following required performance indicators that will measure the energy savings and/or energy cost avoidance in an amount equal to the exemption request and will include a timeline:
(List performance indicators here)
An evaluation of the energy performance indicators will be included as an addendum in the required _
(insert school year following school year above)
published budget summary document per s.
65.90
, Wis. Stats., and in the school district's newsletter or in the published minutes of the school board meeting.
SECTION 14
.
STATEMENT OF EMERGENCY:
FINDING OF EMERGENCY
The Department of Public Instruction finds that an emergency exists and that the attached rule is necessary for the immediate preservation of the public peace, health, safety, or welfare. A statement of the facts constituting the emergency is:
July 1, 2015 is the start of the 2015-16 school year. The energy efficiency revenue limit exemption can play a crucial role in allowing districts to increase their revenues during the 2015-16 school year. Currently, school boards are meeting to propose 2015-16 school expenditures and revenues as part of the annual budget process. Annual meetings must be held to approve the 2015-16 budgets in advance of the required November 1
st
due date to set the school levy. The emergency rules will establish the processes necessary for school boards and the electorate to properly approve the 2015-16 budget and set the
Fall
2015 property tax levy.
SECTION
1
5
.
EFFECTIVE DATE:
The rules contained in this order shall take effect upon publication as emergency rules pursuant to the authority granted by s.
227.24
, Stats.
Dated this _____ day of ____________, 20
1
5
__________________________________________
Tony Evers
, PhD
State Superintendent
