Explanation of agency authority to promulgate the proposed rules under the statutory authority
2013 Wisconsin Act 20, the 2013-15 state budget, included the following nonstatutory language: The department of natural resources may promulgate emergency rules under section
227.24 of the statutes implementing sections
29.739 and
29.740 of the statutes, as created by this act. Notwithstanding section
227.24 (1) (c) and
(2) of the statutes, emergency rules promulgated for walleye population maintenance and enhancement grants remain in effect until June 30, 2016, or the date on which permanent rules take effect, whichever is sooner. Notwithstanding section
227.24 (1) (a) and
(3) of the statutes, the department is not required to provide evidence that promulgating this rule as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.
Section
29.739, Stats., Grants for walleye production, authorizes the department to establish a grant program for the purpose of increasing a grantee's capacity to raise walleye for stocking in the waters of the state. Grants may be awarded on a competitive basis to cities, villages, towns, and counties; to federally recognized Indian tribes or bands located in this state; and to fish farms. It also requires the department to promulgate rules to implement the grant program.
Section
29.740, Stats., Contracts for walleye production, authorizes the department to enter into contracts with local governmental units, federally recognized Indian tribes or bands located in this state, and fish farms for the purpose of increasing the amount of walleye available for stocking in the waters of the state.
Related statutes or rules.
Section
29.709, Stats., State fish hatcheries. The department may operate state fish hatcheries and may do all of the following:
(1) Breed and propagate fish of such species and varieties as it determines to be of value.
(2) Distribute information regarding the propagation and conservation of fish.
(3) Manage the state fish hatcheries and all other property held by the state for the propagation of fish.
(4) Subject to s.
95.60, receive from any person all fish eggs or fish donated to the state or purchased, and procure, receive, exchange, distribute and dispose of fish eggs and fish.
Plain language analysis of the proposed rule.
This emergency rule is necessary to implement the grant program associated with the Wisconsin Walleye Initiative (WWI). WWI is intended to:
• Expand production of large fingerling walleye at state, private, and tribal fish hatcheries for stocking in waters accessible to the public;
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Direct management of the State's walleye populations and fisheries through the Statewide Walleye Management Plan, including cooperative efforts and agreements with Indian tribes on walleye harvest in the waters of the Ceded Territory of Wisconsin;
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Enhance opportunities for federally recognized tribes or bands located in the State to work cooperatively to increase walleye populations across Wisconsin for all users; and
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Provide the private aquaculture community the opportunity to work closely with the state propagation program to coordinate efforts to rear walleye of the genetic strains and quality needed to maximize the probability of successful walleye fishery development and maintenance.
The department will review and modify existing walleye stocking quotas to rear and stock as many large fingerling walleye from state hatcheries as possible beginning in 2013. It will also update walleye stocking guidance for submitting walleye stocking quotas to achieve new WWI goals and utilize increased production capacity in state and private hatcheries for 2014 and beyond.
2013 Wisconsin Act 20, the 2013-15 state budget, directed the department to create by administrative rule a competitive walleye production grant program and provided $1 million annually in a new, biennial appropriation (total of $2 million for the biennium). In addition, the state budget provided $500,000 in fiscal year 2014-15 for the department to enter into contracts to purchase fish from a local governmental unit, tribe, band, or fish farm for stocking in waters of the state. After emergency rule promulgation, the grant program is expected to accept applications in November and December 2013, make award decisions in January and February 2014, and sign grant agreements in March and April 2014.
Section 1 of the rule creates ch.
NR 85, Walleye Production Grants, that includes the following:
Establishment of rules and procedures for the implementation and administration of a grant program that provides financial assistance to cities, villages, towns, and counties; to federally recognized Indian tribes or bands located in this state; and to private fish farms for increasing a grantee's capacity to raise walleye for stocking in the waters of the state.
A list of eligible and ineligible costs for grant program reimbursement:
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Section
29.739, Wis. Stats., determines that eligible costs include those associated with building, improving, or repairing:
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buildings and structures used as fish hatcheries or for fish rearing;
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fish rearing ponds;
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wells or water recirculation systems;
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biosecurity systems to ensure fish health;
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holding facilities and equipment used for fish brood stock; and
• equipment used for the distribution of fish or for the collection of fish spawn.
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Ineligible costs include those not directly associated with or not necessary for increasing capacity to raise walleye, including:
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costs incurred prior to grant approval;
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land acquisition;
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permit and application fees associated with required approvals for grant project development;
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ordinary operating expenses of local government;
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indirect costs associated with general operating costs;
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temporary loss of revenue;
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interest or finance charges; and
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fines and penalties due to violations of, or failure to comply with, federal, state, or local laws.
Information required on grant applications and criteria and methods the department will use to determine grant awards:
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Applications must include:
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a description of the grant project, it's expected results, and how the project will increase the capacity to raise walleye for stocking in the waters of the state;
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the amount of funding requested;
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a work plan with specific project tasks and a timetable for completing the tasks;
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a budget containing line items of project costs;
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a description of the applicant's experience producing walleye or other fish species;
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the expected number and the size and condition of walleye fingerlings that will be produced for purchase by the department as well as for purchase by other customers as a result of the building, improvement, or repair project;
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the purchase price the applicant shall charge the department for walleye fingerlings to be stocked in waters of the state; and
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any additional information as deemed necessary by the department.
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Department staff will review all grant applications in consultation with one designee from the University of Wisconsin-Extension aquaculture program and one designee from the U.S. Fish and Wildlife Service, with final approval by the department. Factors used to determine awards will include:
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extent to which the grant project will increase the applicant's capacity to raise walleye and stock them in the waters of this state;
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cost-effectiveness of the grant project;
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grant project management and technical qualifications of the applicant, such as the applicant's experience producing walleye;
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elements of the project plan, such as whether the project is “shovel-ready" and will result in increased walleye production for stocking in 2014 or 2015, if the project significantly increases the walleye production capacity of the applicant, and whether the proposed budget is adequate to accomplish the grant project;
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purchase price the applicant shall charge the department for walleye fingerlings to be stocked in waters of the state;
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geographic location of the applicant's fish production facilities in relation to stocking needs determined by the department; and
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distribution of grants to a variety of eligible applicants that submit high quality grant project applications.
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The total grant amount per grantee may not exceed $500,000.
Elements that shall be included in grant agreements:
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Much of the information provided on the grant application will be specified in a grant agreement. In addition, the grantee must agree to obtain and pay for fish health certificates issued in compliance with Department of Agriculture, Trade, and Consumer Protection (DATCP) rules for all fish that will be stocked into waters of the state. This would also be required of Indian tribes or bands that do not register their fish hatcheries with DATCP. Grant agreements must also include:
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ability for the department to furnish fish eggs or fish to the grantee at a price established by the department;
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requirements that the grantee make available to the department the expected number of walleye fingerlings that were stated in the grantee's application for department purchase that were reared as a result of the grant project, and the option for the department to purchase from the grantee walleye that meet the size and condition specified by the department, based on available funding, in the subsequent three calendar years;
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ability for the grantee to distribute or sell any surplus walleye fingerlings that are reared as a result of the grant project and not purchased by the department as long as the distribution or sale of the walleye result in the walleye being stocked in waters of the state; and
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disbursement details for when and how the grantee will receive reimbursement payment upon successful completion of grant project work.
This rule also allows the department to approve amendments from a grant agreement upon written request of the grantee, to require the grantee to maintain grant project records, and to terminate a grant agreement for just cause.
Summary of and comparison with existing or proposed federal statutes and regulations
There is no existing or proposed federal regulation that would govern the department's ability to create grant agreements with municipal, tribal, or private fish farms, or that would govern fish stocking in Wisconsin waters.
Comparison with rules in adjacent states
Minnesota and Indiana contract with private fish farms to fulfill some or all stocking within those states. There are no fish hatchery capital expense grant programs in other states, that the department is aware of, available to municipalities, Indian tribes, or private fish farms.
Summary of factual data and analytical methodologies
2013 Wisconsin Act 20, the 2013-15 state budget, created s.
29.739, Stats., which included specifications on who is eligible for grants to increase walleye production and how the grants may be used. Additional elements of this rule and the grant program were developed by department grant and propagation specialists, in consultation with University of Wisconsin aquaculture specialists and through listening sessions with fish farm operators and tribal hatchery operators.
Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis
State general program revenue funds were made available for the walleye production grant program. It is expected that this rule and program will provide an economic benefit for entities that meet grant criteria and are awarded grant funds, including municipal, tribal, and private fish hatcheries. There are no costs expected for entities that are awarded grants, other than potential costs associated with expanded walleye production that are not eligible for grant reimbursement or costs that applicants decide to pay for themselves. Grantees must pay for the grant project up front and will get reimbursed for eligible costs. Overall, this rule and program are expected to have a positive effect for all anglers in Wisconsin who fish for walleye, as well as small businesses that are supported by fishing.
The University of WI-Extension aquaculture staff hosted two “listening sessions" to provide private aquaculture industry with the opportunity to comment or offer suggestions regarding initial grant program plans. The sessions were held in Madison on 8/29/2013 (6-7 people in attendance) and in Wisconsin Rapids on 9/4/2013 (10 people in attendance). The same information was presented to tribal attendees at a Voigt Task Force meeting on 9/5/2013 and at meetings with tribal hatchery staffs in early October 2013.
Effects on Small Business
The rule has the potential to directly impact municipal, tribal, and private fish hatcheries by providing a new source of grant funding for projects that would increase a fish hatchery's capacity to raise walleye for stocking in waters of the state. It may also have a positive economic effect on other businesses used by grantees to implement the grant projects, such as construction companies. Except for rule elements that would require tribal grantees to obtain and pay for fish health certificates for all fish that will be stocked into waters of the state, no additional compliance or reporting requirements will be imposed on small businesses as a result of these rule changes other than those associated with grant reimbursement requirements.
This emergency rule is necessary to implement the grant program associated with the Wisconsin Walleye Initiative (WWI).
2013 Wisconsin Act 20, the 2013-15 state budget, directed the department to create by administrative rule a competitive walleye production grant program and provided $1 million annually in a new, biennial appropriation (total of $2 million for the biennium). In addition, the state budget provided $500,000 in fiscal year 2014-15 for the department to enter into contracts to purchase fish from a local governmental unit, tribe, band, or fish farm for stocking in waters of the state.
Economic Impact
Pursuant to ss.
227.114 and
227.137, Wis. Stats., the rule is not expected to have an adverse effect on the economy, a sector of the economy, productivity, jobs, or the overall economic competitiveness of the State. It will have a positive impact by providing $1 million annually in the 2013-15 biennium to municipal and tribal fish hatcheries and private fish farms through a competitive grant program. Grants will be used for building and improving hatchery buildings, rearing ponds, equipment and other facilities. The rule may also have a positive economic effect on other businesses used by grantees to implement the grant projects, such as construction companies.
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.
Agency Contact Person
Kate Strom Hiorns
Department of Natural Resources
P.O. Box 7921
Madison, WI 53707-7921
Telephone: (608) 266-0828
Email: dnrfishrules@wisconsin.gov.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
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Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
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ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
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1. Type of Estimate and Analysis
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X Original
⍽ Updated
⍽ Corrected
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2. Administrative Rule Chapter, Title and Number
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New chapter NR 85, Walleye Production Grants
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3. Subject
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Establishment of a competitive grant program for cities, villages, towns, and counties; federally recognized Indian tribes or bands located in this state; and fish farms for increasing capacity to raise walleye for stocking in the waters of the state.
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4. Fund Sources Affected
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5. Chapter 20, Stats. Appropriations Affected
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X GPR
⍽ FED ⍽ PRO ⍽ PRS
⍽ SEG ⍽ SEG-S
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6. Fiscal Effect of Implementing the Rule
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⍽ No Fiscal Effect
⍽ Indeterminate
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⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
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X Increase Costs
X Could Absorb Within Agency's Budget
⍽ Decrease Cost
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7. The Rule Will Impact the Following (Check All That Apply)
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⍽ State's Economy
⍽ Local Government Units
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X Specific Businesses/Sectors
⍽ Public Utility Rate Payers
X Small Businesses (if checked, complete Attachment A)
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8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes
X No
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9. Policy Problem Addressed by the Rule
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The 2013-15 state budget provided $1 million annually in a new, biennial appropriation (total of $2 million for the biennium) and directed the department to create by administrative rule a competitive walleye production grant program.
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10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
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The University of WI-Extension aquaculture staff hosted two “listening sessions" to provide private aquaculture industry with the opportunity to comment or offer suggestions regarding initial grant program plans. The sessions were held in Madison on 8/29/2013 (6-7 people in attendance) and in Wisconsin Rapids on 9/4/2013 (10 people in attendance). The same information was presented to tribal attendees at a Voigt Task Force meeting on 9/5/2013 and at meetings with tribal hatchery staffs in early October 2013.
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11. Identify the local governmental units that participated in the development of this EIA.
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The fiscal estimate is for an emergency rule that does not require consultation with local governmental units for development of an EIA.
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12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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The rule is not expected to have an adverse effect on the economy, a sector of the economy, productivity, jobs, or the overall economic competitiveness of the State. It will have a positive impact by providing $1 million annually in the 2013-15 biennium to municipal and tribal fish hatcheries and private fish farms through a competitive grant program. Grants will be used for building and improving hatchery buildings, rearing ponds, equipment and other facilities. The rule may also have a positive economic effect on other businesses used by grantees to implement the grant projects, such as construction companies.
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13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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2013 Wisconsin Act 20, the 2013-15 state budget, created s. 29.739, Stats. It included specifications on who is eligible for grants to increase walleye production and for what the grants may be used. Additional elements of this rule and the grant program were developed by department grant and propagation specialists, in consultation with University of Wisconsin aquaculture specialists and through listening sessions with fish farm operators and tribal hatchery operators.
State general program revenue funds were made available for the walleye production grant program. It is expected that this rule and program will provide an economic benefit for entities that meet grant criteria and are awarded grant funds, including municipal, tribal, and private fish hatcheries. There are no costs expected for entities that are awarded grants, other than potential costs associated with expanded walleye production that are not eligible for grant reimbursement or costs that applicants decide to pay for themselves. Grantees must pay for the grant project up front and will get reimbursed for eligible costs. Overall, this rule and program is expected to have a positive effect for all anglers in Wisconsin who fish for walleye, as well as small businesses that are supported by fishing.
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14. Long Range Implications of Implementing the Rule
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The proposals in this rule would support the efforts of the new “Wisconsin Walleye Initiative," which is intended for state, municipal, tribal, and private fish hatchery operations to increase the production of large walleye fingerlings for stocking in Wisconsin waters.
The department is hiring a limited term employee to help manage the walleye grant production program and a future contracting program. Although this increases total cost for the department, costs will be absorbed by the agency's budget because funding to cover this position was provided in the 2013-15 state budget.
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15. Compare With Approaches Being Used by Federal Government
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There is no existing or proposed federal regulation that would govern the department's ability to create grant contracts with municipal, tribal, or private fish farms, or that would govern fish stocking in Wisconsin waters.
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16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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Minnesota and Indiana contract with private fish farms to fulfill some or all stocking within those states. There are no grant programs in other states, that the department is aware of, for capital expenses available to municipalities, Indian tribes, or private fish hatcheries.
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17. Contact Name
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18. Contact Phone Number
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Mike Staggs, Fisheries Management Bureau Director
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608-267-0796
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This document can be made available in alternate formats to individuals with disabilities upon request.
ATTACHMENT A
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1. Summary of Rule's Economic and Fiscal Impact on Small Businesses (Separately for each Small Business Sector, Include Implementation and Compliance Costs Expected to be Incurred)
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The proposed rule change has the potential to impact municipal, tribal, and private fish hatcheries by providing a new source of grant funding for projects that would increase a fish hatchery's capacity to raise walleye for stocking in waters of the state. Except for rule elements that would require tribal grantees to obtain and pay for fish health certificates for all fish that will be stocked into waters of the state, no additional compliance or reporting requirements will be imposed on small businesses as a result of these rule changes other than those associated with grant reimbursement requirements.
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2. Summary of the data sources used to measure the Rule's impact on Small Businesses
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The University of WI-Extension aquaculture staff hosted two “listening sessions" to provide private aquaculture industry with the opportunity to comment or offer suggestions regarding initial grant program plans. The sessions were held in Madison on 8/29/2013 (6-7 people in attendance) and in Wisconsin Rapids on 9/4/2013 (10 people in attendance). The same information was presented to tribal attendees at a Voigt Task Force meeting on 9/5/2013 and at meetings with tribal hatchery staffs in early October 2013.
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3. Did the agency consider the following methods to reduce the impact of the Rule on Small Businesses?
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X Less Stringent Compliance or Reporting Requirements
⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting
⍽ Consolidation or Simplification of Reporting Requirements
⍽ Establishment of performance standards in lieu of Design or Operational Standards
⍽ Exemption of Small Businesses from some or all requirements
⍽ Other, describe:
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4. Describe the methods incorporated into the Rule that will reduce its impact on Small Businesses
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-Quick application and review time to allow grantees to begin project work in a timely manner.
-Enhances opportunities for federally recognized tribes or bands located in the State to work cooperatively to increase walleye populations across Wisconsin for all users.
-Provides the private aquaculture community the opportunity to work closely with the state propagation program to coordinate efforts to rear walleye of the genetic strains and quality needed to maximize the probability of successful walleye fishery development and maintenance.
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5. Describe the Rule's Enforcement Provisions
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The rule will be enforced by department Conservation Wardens under the authority of chapters 23 and 29, Stats.
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6. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)
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⍽ Yes X No
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