ACT 32 and You
Wisconsin school districts have a way to fund facility improvements through legislation that provides a revenue limit exemption for energy conservation purposes. Known as Act 32, this exemption allows a district to surpass revenue limits – up to the amount it spends to implement energy efficiency measures. “Energy efficiency” impacts nearly every part of your operation, so the legislation provides a great opportunity to perform deferred maintenance and renovations.
Act 32 requires districts to partner with an energy services company (ESCO) and enter into a performance contract that offsets the cost.
What is Performance Contracting?
"A comprehensive 'self-funded' program where equipment, technology and services are implemented by an Energy Services Company (ESCO) to help modernize facilities - funded by guaranteed energy and operational savings."
Energy Efficiency Revenue Limit Exemption
Wisconsin Statute 121.91(4)(o)1
If a school board adopts a resolution to do so, the limit otherwise applicable to a school district under sub. (2m) in any 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 payment of debt service on bonds or notes issued 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 performance contract entered into under s. 66.0133, and the bonds or notes issued to finance the project, if any, are issued for periods not exceeding 20 years. If a school board issues bonds or notes to finance a project described in this subdivision, a resolution adopted by a school board under this subdivision is valid for each school year in which the school board pays debt service on the bonds or notes.