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SB 1167

Relating to: the school district revenue limit adjustment for energy efficiency projects. (FE)

2025-2026 Regular Session Introduced by Kristin Dassler-Alfheim and 5 co-sponsors

Wisconsin districts can raise their revenue limit to offset the cost of eligible energy efficiency projects financed by debt or loans up to 20 years, under energy savings contracts

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Bill Summary · SB 1167

Summary of Wisconsin SB 1167 (Session 2025)

Purpose and intent

  • Relates to the school district revenue limit adjustment for energy efficiency projects.
  • The bill expands the discretion for school districts to increase their revenue limit to offset the costs of eligible energy efficiency projects.

Key provisions

What changes are made to the revenue limit rule

  • Repeals current restriction and broadens eligibility:
    • Under current law, the ability to exceed the revenue limit for an energy efficiency project is limited to resolutions adopted before Jan 1, 2018, or after Dec 30, 2018.
    • The bill removes that timing restriction. Starting on the date the bill becomes law, a school district may adopt a resolution to increase its revenue limit by the amount the district spends on an energy efficiency project.
  • Scope of eligible projects (what can qualify for the adjustment):
    • The project must meet criteria that tie it to energy efficiency improvements financed with debt or loans.
    • A qualifying project is one that:
    • Results in a reduction or avoidance of energy costs or other operating costs.
    • Is governed by an energy savings performance contract (as defined in state law Section 66.0133).
    • Is financed with a debt instrument (bond or note) or a state trust fund loan with a term not exceeding 20 years.
    • If a bond/note/state loan finances the project, the corresponding debt service payments render the resolution valid for each year the district pays debt service.

Exclusions and clarifications

  • The bill clarifies that the energy efficiency revenue limit adjustment is limited to projects that are:
    • Facility alterations, or
    • Training, service, or operations programs designed to reduce energy consumption or operating costs, conserve water, or improve metering accuracy.
  • It explicitly excludes energy efficiency projects that are solely for facility alterations or training/service/operations programs aimed at ensuring compliance with building codes unless those meet the outlined criteria for the adjustment.

Administrative details

  • Section 3 repeals the prior version of the statute (the former 121.91(4)(o)4) and Section 1–2 renumber/amend the provisions to implement the expanded framework.
  • Initial applicability (Section 4):
    • The act first applies to a resolution adopted to increase a school district’s revenue limit under 121.91(4)(o) that is adopted on the act’s effective date.

Who is affected

  • Wisconsin school districts:
    • School boards can adopt resolutions to increase their revenue limit by the amount spent on eligible energy efficiency projects.
    • Eligible projects are those funded by bonds/notes or state trust fund loans with terms up to 20 years, and governed by energy savings performance contracts.
  • Potential stakeholders include district administrators, school boards, facility managers, and taxpayers in the district who would be affected by revenue limit modifications.

Procedural and timeline aspects

  • Effective date: The bill states it applies to energy efficiency revenue limit adjustments adopted on the act’s effective date, with prospective effect for future eligible projects.
  • Authority expanded: The legislative change removes a long-standing date-based cutoff, enabling districts to pursue energy efficiency revenue limit adjustments more broadly going forward.

Potential impacts (high-level)

  • Fiscal flexibility: Districts can more readily finance energy efficiency improvements by offsetting the cost through increased revenue limits, potentially enabling more projects without immediate tax rate changes.
  • Accountability and oversight: Projects must be under energy savings performance contracts and meet defined criteria, ensuring that the revenue limit increase corresponds to verifiable energy/operating cost reductions.
  • Debt financing focus: The adjustment is tied to debt service on approved financing (bond/note/state loan), with a maximum 20-year term for the financing.

Note: The bill includes a local fiscal estimate appendix and may involve administrative rule interpretation regarding contracts and metering requirements.

Compiled from official sources — confirm details with the bill’s official record.

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