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A budget amendment passed earlier this week by Republicans on the state Legislature’s Joint Finance Committee threatens to nullify an audit of Focus on Energy, the state’s energy efficiency program. The amendment would cut new funding for the program, which is undergoing a review by the state’s Legislative Audit Bureau.

Republicans on the Joint Audit Committee proposed the audit last month, which was later approved. It arose in reaction to the new funding, which was approved by a Democrat-controlled Joint Finance Committee in December. The state Public Service Commission had requested a greater budget to meet new energy efficiency goals.

(photo by Adrian Palomo)

The audit was intended to evaluate the program’s spending, participation, oversight and effectiveness. Focus on Energy provides grants and rebates to homeowners, businesses and local governments that make energy efficiency upgrades (such as installing solar panels). Supporters of the audit, including State Sen. Robert Cowles (R-Green Bay), said it was needed to determine whether the new funding was necessary.

In recent years, Focus on Energy has received about $100 million a year from state-mandated payments made by Wisconsin’s electric utilities. The new rules for calculating those payments passed in December would increase annual funding to $120 million in 2011, $160 million in 2012, $204 million in 2013 and $256 million in 2014.

These funds would come primarily from ratepayers – but the PSC estimated that increasing rebates and other programs would make homes and businesses more energy efficient, thereby lowering electric bills in the long term. The nonpartisan Legislative Fiscal Bureau questioned this analysis, noting that only customers who benefit from or utilize Focus on Energy programs would enjoy savings.

The budget amendment, introduced by finance committee co-chair State Rep. Robin Vos (R-Burlington) and passed on party lines, would limit the program’s funding to $100 million a year.

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