AB 902

This bill creates the Wisconsin Renewable Energy Development Authority

(WREDA) 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 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