This tiered approach is being used to differentiate between the requirements for different types and levels of regulated activities. The level of water conservation and efficiency requirements are increased from Tier 1, to Tier 2, to Tier 3.
In addition to completing a Water Conservation Plan, there are four mandatory water conservation and efficiency measures (CEMs) for all persons for whom water conservation and efficiency requirements are mandatory under this chapter. These CEMs have been determined to be cost effective, environmentally sound and economically feasible for all water use sectors. Implementation of additional CEMs are required for Tier 2 and Tier 3 only.
The rule sets forth definitions, sector-specific water conservation and efficiency measures, elements of a water conservation plan, procedures for conducting an analysis of whether a conservation and efficiency measure is environmentally sound and economically feasible, a process for approval and reporting, and a process for enforcement.
State fiscal impact
All costs that the Department will incur are the result of the water conservation and efficiency requirements enacted in
2007 Wisconsin Act 227.
The primary financial impact to the state will be the review of water conservation plans, which include documentation of the implementation of water conservation and efficiency measures This review will be done internally by a Water Supply Specialist-Advanced. Annually, an estimated 30 water withdrawers will be impacted by this rule. Additionally, there will be annual costs associated with outreach on the voluntary water conservation and efficiency program, which will be done internally by a Natural Resources Staff Specialist. There will be a one-time cost to develop tools for water users to conduct a economical feasibility analysis.
Additionally, state facilities with new or increased withdrawals in the Great Lakes basin will have to comply with this rule. For example, the state operates several fish hatcheries that may be financially impacted if they expand or a new hatchery is established and need a new or increased water withdrawal. However, the Department cannot reliably predict the number of state-owned facilities in the Great Lakes basin that will require a new or increased water withdrawal above the threshold levels, therefore the assumptions included for the state fiscal effect below do not include dollar amounts for fiscal impacts for state fish hatcheries or other state-owned facilities.
Annual State Fiscal Impact
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Estimated number of persons annually subject to NR 852 = 30 water withdrawers
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Hours for the Department to review and approve water conservation plans = 20 hrs x 30 plans = 600
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Annual fiscal impact to the Department for water conservation plan review = $35/hr x 600 hours = $21,000
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Full time equivalent (FTE) for water conservation plan review = 600 hrs / 1820 hrsFTE = 0.3 FTE
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Annual fiscal impact to the Department for water conservation outreach = $35/hr x 420 hrs = $14,700
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Full time equivalent (FTE) for water conservation outreach = 420 hrs / 1820 hrs/FTE = 0.2 FTE
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TOTAL ANNUAL STATE FISCAL IMPACT = $35,700 or 0.50 FTE
One-Time State Fiscal Impact
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Estimated number of hours to complete economically feasible analysis tools = 1040 hrs
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Economically feasible analysis tool development (developed internally) = 1040 hrs/ 1820 hrs/FTE = 0.6 FTE
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One-time state fiscal impact for tool development (developed internally) = $35/hr x 1040 hrs = $36,400
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One-time state fiscal impact for tool development (contracted out) = $70/hr x 1040 hrs = $72,800
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TOTAL ONE-TIME STATE FISCAL IMPACT = $109,200
Local government fiscal impact
The Department assumes that approximately 5 municipal water systems per year will apply for a new or increased withdrawal and will be required to complete a water conservation plan and implement water conservation and efficiency measures. The number of permittees may increase in the long term along with continued population growth and increased economic activity.
Water conservation and efficiency measures do not include retrofitting requirements, but rather, the required elements include planning and operational changes to achieve water savings. CEMs included in this rule are designed to be revenue neutral; planning costs incurred should be offset by capital and operational costs avoided. If an element is not economically feasible as determined by a prescribed analysis, the water system will not be required to implement it. The cost to the permittee will primarily be an up front cost to complete a water conservation plan and establish CEMs. In subsequent years, water savings can be achieved with minimal capital and operational costs.
Public water systems regulated by the Public Service Commission have the ability to recover conservation and efficiency related costs through rates charged to customers.
Annual Local Government Fiscal Impact
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Number of hours for permittee to complete requirements = 160
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Fiscal impact to each individual permittee = $50/hr x 160 = $8,000
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Local government permittees affected = 15% of 30 = 5 water withdrawers
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Total annual impact to local government sector = 5 x $8000 = $40,000
Private sector fiscal impact
The private sector will be impacted by this rule in 6 areas: (1) Privately owned “public" water supply systems; (2) Commercial and institutional businesses with their own water supply; (3) Dairy farm and livestock operations (including aquaculture) with their own water supply; (4) Agricultural irrigation operations with their own water supply; (5) Industrial operations on their own water supply; (6) Electric power production using water in their process; and (7) Other water users with their own water supply. It is estimated that the number of hours for a permittee to complete the water conservation plan and applicable water conservation and efficiency measures would be equivalent to the hours required of a public water system (local government) permittee (160 hours/permittee).
Annually, approximately 25 private sector water withdrawers are estimated to trigger a new or increased withdrawal and will be required to complete a water conservation plan and implement water conservation and efficiency measures. The number of permittees may increase in the long term along with continued population growth and increased economic activity.
Water conservation and efficiency measures do not include retrofitting requirements, but rather, the required elements include planning and operational changes to achieve water savings. CEMs included in this rule are designed to be revenue neutral; planning costs incurred should be offset by capital and operational costs avoided. If an element is not economically feasible as determined by a prescribed analysis, the water system will not be required to implement it. The cost to the permittee will primarily be an up front cost to complete a water conservation plan and establish CEMs. In subsequent years, water savings can be achieved with minimal capital and operational costs.
Annual Private Sector Fiscal Impact
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Number of hours for permittee to complete requirements = 160 hours
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Fiscal impact to each individual permittee = $50/hr x 160 = $8,000
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Privately owned permittees affected = 85% of 30 = 25 water withdrawers
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Total annual impact to private sector = 25 x $8000 = $200,000
Summary for state fiscal effect
Increase costs. May be possible to absorb within agency's budget.
Summary for local government fiscal effect
Increase costs — Mandatory.
Types of local government units affected
Towns, Villages, Cities, Counties, Water Utilities, School Districts, WTCS Districts.
Fund sources affected
PRO.
Affected Ch.
20 appropriations
Long-range fiscal implications
None are expected.
Agency Contact Person
Steven Elmore, Water Resources Management Specialist
Wis. Dept. of Natural Resources
Bureau of Drinking Water & Groundwater
Phone: (608) 264-9246
__________________________________________
CR 10-059, DNR # DG-25-10
NR 856 — Water Use Registration and Reporting
Plain language analysis
This rule rescinds a portion of an existing rule related to registration of water withdrawals and creates a new rule that clarifies and further defines new statewide statutory requirements for withdrawals of waters of the state and diversions of water from the Great Lakes Basin. The new law requires the following:
1. Registration for any person who has or proposes to have a water supply system with the capacity to withdraw 100,000 gallons per day or more in any 30-day period or who diverts water in any amount from the Great Lakes Basin.
2. Annual reporting for any person who makes a withdrawal in excess of 100,000 gallons per day or more in any 30-day period or who diverts any amount from the Great Lakes Basin.
The rule sets forth definitions, procedures and information requirements for registrations, procedures for amending and terminating registrations, methods for measuring withdrawals, and procedures for annual reporting.
Comparison with federal regulations
There are no comparable federal regulations pertaining to water withdrawals. However, in passing the Great Lakes – St. Lawrence River Basin Water Resources Compact (Compact), each of the Great Lakes states now have similar regulations requiring the registration and permitting of certain levels of water withdrawals within the Great Lakes Basin.
Summary of factual data and analytical methodologies
Published scientific literature and manuals were used as the basis for developing the withdrawal measurement standards. Existing state statutes, department rules, and department procedures were used to guide the development of the registration and reporting process.
Analysis and supporting documentation used to determine rule's effect on small business
Any person with a water supply system with the capacity to make a withdrawal from the waters of the state of 100,000 gallons per day is required to register. In addition, any person who makes a withdrawal averaging 100,000 gallons per day or more in any 30-day period must also report their water withdrawals to the department annually. To comply, small businesses follow the same requirements as other persons who withdraw water. The registration and reporting requirements are straightforward and can be accomplished by most individuals with no specific professional background.
Comparison with rules in adjacent states
The following table compares regulatory requirements for water withdrawals in adjacent states.
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Wisconsin
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Illinois
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Iowa
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Michigan
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Minnesota
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Registration
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Registration is required for persons with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period.
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An allocation
permit is required for withdrawals from the Lake Michigan Basin.
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Water use permits are required of any person or entity that withdraws at least 25,000 gallons
in a 24-hour period during any calendar year.
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Registration is required for a new withdrawal averaging over 100,000 gallons per day in any 30-day period or an increase averaging over 100,000 gallons per day in any 30-day period beyond the baseline capacity of a withdrawal.
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Water Use permits are required for withdrawals greater than or equal to 10,000 gallons per day
or 1 million
gallons per year from surface or groundwater.
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Reporting
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Monthly water withdrawal volumes are reported annually by March 1 for withdrawals averaging 100,000 gallons per day or more in any 30-day period.
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Annual reporting is required for
all withdrawals from the Lake Michigan basin and statewide for withdrawals over 100,000 gallons per day.
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Monthly water withdrawal volumes are reported by all water use permit holders annually by
January 31.
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Monthly water withdrawal volumes are reported by all registrants annually by April 1.
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Monthly water withdrawal
volumes are reported by all water use permit holders annually by February 15.
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Small Business Impact
This rule will affect small businesses that supply their own water with water supply systems that have the capacity to withdraw over 100,000 gallons per day. Small businesses, like other entities that are affected by this rule, will have to determine the amount of water used on a monthly basis and report that water use annually. Small businesses that receive water solely from a public water supply will not be impacted by this rule. Specific standards will provide clarity and consistency in the registration and reporting process.
Pursuant to s.
227.114, Stats., it is not anticipated that the proposed rules will have an economic impact on small businesses.
Environmental Impact
The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Fiscal Estimate
State fiscal impact
Annual Costs:
All costs that the Department will incur are the result of the registration and reporting requirements enacted in
2007 Wisconsin Act 227.
Annual costs to the Department are expected to increase by an estimated $145,700 for salary, supplies, and related expenditures. This estimate is based upon the following expected costs associated with administering the new requirements:
1) Salary and fringe for 2.0 FTEs classified as Water Supply Specialists at an estimated cost of approximately $136,200 [2,080 hours x $32.73/hour (salary and fringe) x 2 FTE]. The FTEs will provide compliance assistance, develop information and education materials, review and accept registration submittals, review reporting information, prepare summary reports and analysis, investigate complaints and non-compliance with the rules, and maintain the data system.
2) Travel and supply costs of $6,000 ($3,000 x 2 FTE). The travel will include field investigations of complaints and non-compliance and travel associated with providing training and customer service to the regulated community.
3) Database/IT costs of $3,500 (50 hours x $70/hour) for an outside contractor to maintain the data system and online registration and reporting system.
One-Time Costs:
One time costs are estimated to be $128,650. These costs are for developing a database and online system to accept registration and reporting information. This includes computer contractor costs of $44,900 (1 IS contractor @ 350 hours x $70/hour and 1 GIS contractor @ 300 hours x $68/hour) and DNR staff time at a cost of $83,750 (1,675 hours x $50/hour average salary and fringe). DNR staff time is required from a GIS Coordinator, IS Systems Developer, and Water Supply Specialist-Advanced.
Local government fiscal impact
