AU7 AB1: Bill Text Engrossed

Wetlands and waterway permits exemption

Under federal law, activities involving the discharge of dredged or fill material into “navigable waters” must comply with certain guidelines contained in regulations promulgated by the federal Environmental Protection Agency in order for a discharge permit to be issued by the U.S. Army Corps of Engineers (ACE). Before ACE may issue a permit, the Department of Natural Resources must determine that the project complies with state water quality standards, including those for wetlands (water quality certification). Federal law defines “navigable waters” to be “the waters of the United States.” Generally, courts have interpreted “the waters of the United States” to exclude nonnavigable, isolated, intrastate waters (nonfederal wetlands).

Under current state law, subject to exceptions, no person may discharge dredged material or fill material into a federal or nonfederal wetland unless the discharge is authorized by a wetland general permit or individual permit or the discharge is exempt from permitting requirements. Current law requires DNR to issue wetland general permits for discharges of dredged or fill material into certain federal and nonfederal wetlands. For a discharge into a wetland that is not authorized under a wetland general permit, current law requires a person to apply for and obtain a wetland individual permit. Before DNR may issue a wetland individual permit, it must require the restoration, enhancement, creation, or preservation of other wetlands to compensate for adverse impacts to a wetland resulting from the discharge, also known as mitigation. Under current law, a wetland general or individual permit issued by DNR constitutes water quality certification.

Under this substitute amendment, a person may, without a permit, discharge dredged material or fill material into a nonfederal wetland that is located in an electronics and information technology manufacturing zone if the discharge is related to the construction, access, or operation of a new manufacturing facility that is also located in the zone. With respect to a federal wetland located in an electronics and information technology manufacturing zone, the substitute amendment provides that no state permit is required and that the state waives water quality certification. Under the substitute amendment, a federal permit for such a discharge is still required. The substitute amendment requires any adverse impacts to functional values of federal or nonfederal wetlands in an electronics and information technology manufacturing zone to be compensated at a ratio of two acres per each acre impacted through the purchase of credits from a mitigation bank, participation in the in lieu fee subprogram or escrow subprogram administered by DNR, or completion of mitigation within this state. Under current law, the general minimum ratio is 1.2 acres for each acre affected by the discharge. If compensation occurs through participation in the in lieu fee subprogram, the substitute amendment requires DNR to identify and consider mitigation that could be conducted within the same watershed and authorizes locating mitigation outside the watershed only upon agreement of DNR and the person exempt from wetland permitting.

Under current law, subject to exceptions, no person may do any of the following without a permit issued by DNR: 1) deposit any material or place any structure upon the bed of any navigable water where no bulkhead line has been established or beyond a lawfully established bulkhead line; 2) construct or maintain a bridge or construct, place, or maintain a culvert in, on, or over navigable waters; 3) construct, dredge, or enlarge any artificial water body that connects with an existing navigable waterway; 4) construct or enlarge any part of an artificial water body that is or will be located within 500 feet of the ordinary high-water mark of, but that does not or will not connect with, an existing navigable waterway; 5) grade or remove topsoil from the bank of any navigable waterway where the area exposed by the grading or removal will exceed 10,000 square feet; or 6) change the course of or straighten a navigable stream.

Under the substitute amendment, DNR generally may not require a permit for any of these activities if they relate to the construction, access, or operation of a new manufacturing facility located in an electronics and information technology manufacturing zone. However, the substitute amendment provides that DNR may require a permit for the construction or maintenance of bridges and the construction or placement and maintenance of culverts in a zone if DNR determines that conditions specific to the site require restrictions in order to prevent significant adverse impacts to the public rights and interests, environmental pollution, or material injury to the riparian rights of any riparian owner.

Department of Natural Resources oversight

Except as otherwise specifically provided, the substitute amendment requires DNR to ensure that the conditions of applicable permits, licenses, and approvals under DNR's jurisdiction are met for all activities related to the construction, access, or operation of a new manufacturing facility within an electronics and information technology manufacturing zone, including permits, licenses, and approvals required under current law and any associated rules promulgated by DNR.

Public Service Commission certificates and market-based rates

This substitute amendment exempts public utility projects that primarily serve a new customer within an electronics and information technology manufacturing zone from obtaining a certificate of authority from the Public Service Commission, which current law generally requires for construction, improvement, and other projects of public utilities. The substitute amendment also exempts transmission line relocations within such a zone from obtaining a certificate of public convenience and necessity from the PSC, which current law generally requires before beginning construction of high-voltage transmission lines and associated facilities.

The substitute amendment also requires an electric public utility that provides service to an electronics and information technology manufacturing zone to file tariffs with the PSC for market-based pricing and options for a new retail customer within the zone that the PSC determines is eligible for the electronics and information technology manufacturing zone credit created by the substitute amendment. The substitute amendment requires the tariffs to be filed no later than January 1, 2020. The substitute amendment specifies requirements that must be included in the tariffs and requires the PSC to approve rates that are consistent with those requirements.

Grants to local governments

This substitute amendment authorizes the Department of Administration to make grants to local governmental units for costs associated with development in an electronics and information technology manufacturing zone, including costs related to infrastructure and public safety. DOA may require a local governmental unit to match a grant in whole or in part.

Contingent highway bonding authorization

This substitute amendment authorizes the state to contract up to $252,400,000 in general obligation public debt for the I 94 north-south corridor project. The Department of Transportation, however, may not expend the proceeds of these bonds unless the state receives an award of federal moneys for the project and the joint committee on finance approves the expenditure.

Design-build construction

This substitute amendment authorizes a city or village in which an electronics and information technology manufacturing zone is located to contract for the acquisition of water and sewer systems and wastewater treatment facilities using the design-build system. Under this system, the city or village invites developers to submit proposals to provide completed projects in these areas without following the bidding requirements for public works projects that would otherwise apply. Current law authorizes the use of this system by any city, village, or county for the acquisition of recycling or resource recovery facilities.

Enterprise zones

Under current law, WEDC may designate areas within the state as “enterprise zones.” WEDC may certify a business in an enterprise zone to receive income and franchise tax credits if the business creates or retains jobs in the enterprise zone, subject to several limitations. The substitute amendment makes the following changes to the enterprise zone tax credit program:

1. Authorizes WEDC to increase from 30 to 35 the number of designated enterprise zones.

2. Authorizes WEDC to cancel the designation of an enterprise zone if WEDC revokes all certifications for tax credits within the zone. WEDC may designate a new enterprise zone if it cancels an existing zone designation.

3. Authorizes WEDC to designate a new enterprise zone if an existing enterprise zone expires. Under current law, an enterprise zone designation expires after 12 years.

4. Authorizes WEDC to certify for enterprise zone tax credits a financial services technology business that, after completing a competitive corporate relocation process, retains its corporate headquarters and at least 93 percent of its full-time employees, as determined by WEDC, in Wisconsin.

New positions related to economic development

This substitute amendment creates an economic development liaison project position in the unclassified service of the state civil service. The substitute amendment also requires WEDC to hire a full-time employee to be known as the electronics manufacturing small business development director. The director's duties include coordinating with the economic development liaison in the department of administration and providing outreach to local economic development organizations. Both of those positions sunset as of December 31, 2022.

Worker training and employment program

This substitute amendment requires the Department of Workforce Development to allocate funding in the 2019-21 fiscal biennium for a program to facilitate worker training and employment. In implementing the program, DWD is required to consult the Technical College System Board and WEDC.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB1-engrossed,2 Section 2. 16.297 of the statutes is created to read:

AB1-engrossed,8,3 16.297 Grants for local government expenditures; moral obligation pledge. (1) Definitions. In this section:

AB1-engrossed,9,3 (a) “Local governmental unit” means a city, village, town, or county that contains any part of an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,9,4 (b) “Municipal obligation” has the meaning given in s. 67.01 (6).

AB1-engrossed,9,10 (1m) Grants. From the appropriation under s. 20.505 (1) (fr), the department may make one or more grants to a local governmental unit for the local governmental unit's expenditures for costs the department determines are associated with development occurring in an electronics and information technology manufacturing zone designated under s. 238.396 (1m), including costs related to infrastructure and public safety.

AB1-engrossed,9,13 (2) Match. The department may require a local governmental unit to match in whole or in part a grant the department makes to the local governmental unit under sub. (1m).

AB1-engrossed,9,15 (2m) Contract. The secretary may contract with a local governmental unit to implement subs. (1m) and (2).

AB1-engrossed,9,19 (3) Moral obligation pledge. (a) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation to pay the principal and interest of a local governmental unit's municipal obligations, if all of the following apply:

AB1-engrossed,9,22 1. The local governmental unit's municipal obligation is issued to finance costs related to development occurring in or for the benefit of an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,9,24 2. The secretary designates the moral obligation pledge for the local governmental unit's municipal obligation before the municipal obligation is issued, based on a plan that the local governmental unit shall submit to the department on a form prescribed by the department.

AB1-engrossed,10,5 (b) No more than 40 percent of a local governmental unit's aggregate municipal obligations under par. (a) shall be subject to the moral obligation pledge under that paragraph.

AB1-engrossed,10,16 (c) The proceeds of municipal obligations issued by a local governmental unit under this subsection shall be used to finance costs related to development occurring in or for the benefit of an electronics and information technology manufacturing zone designated under s. 238.396 (1m). The legislature determines that the provision of assistance by state agencies to a local governmental unit under this section, any appropriation of funds to a local governmental unit under this section, and the moral obligation pledge under par. (a) serve a substantial statewide public purpose by assisting the development of an electronics and information technology manufacturing zone in the state, by encouraging economic development, by reducing unemployment, and by bringing needed capital into the state for the benefit and welfare of people throughout the state.

AB1-engrossed,3 Section 3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB1-engrossed,4 Section 4. 20.395 (6) (ad) of the statutes is created to read:

AB1-engrossed,11,8 20.395 (6) (ad) Principal repayment and interest, contingent funding of southeast Wisconsin freeway megaprojects, state funds. From the general fund, a sum sufficient to reimburse s. 20.866 (1) (u) for the payment of principal and interest costs incurred in financing southeast Wisconsin freeway megaprojects, as provided under ss. 20.866 (2) (uuz) and 84.585 and 2017 Wisconsin Act .... (this act), section 60 (1), and to make payments under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a).

AB1-engrossed,4m Section 4m. 20.445 (1) (bg) of the statutes is created to read:

AB1-engrossed,11,12 20.445 (1) (bg) Worker training and employment program. As a continuing appropriation, the amounts in the schedule for the worker training and employment program under s. 106.271.

AB1-engrossed,5 Section 5. 20.505 (1) (fr) of the statutes is created to read:

AB1-engrossed,11,16 20.505 (1) (fr) Grants for local government expenditures. As a continuing appropriation, the amounts in the schedule for grants to local governmental units under s. 16.297.

AB1-engrossed,6 Section 6. 20.835 (2) (cp) of the statutes is created to read:

AB1-engrossed,12,3 20.835 (2) (cp) Electronics and information technology manufacturing zone credit. A sum sufficient to make the payments under ss. 71.07 (3wm) (d) 2. and 71.28 (3wm) (d) 2.

AB1-engrossed,7 Section 7. 20.866 (2) (uuz) of the statutes is created to read:

AB1-engrossed,12,10 20.866 (2) (uuz) Transportation; southeast Wisconsin freeway megaprojects subject to contingency. From the capital improvement fund, a sum sufficient for the department of transportation to fund southeast Wisconsin freeway megaprojects as provided under s. 84.585. Subject to 2017 Wisconsin Act .... (this act), section 60 (1), the state may contract public debt in an amount not to exceed $252,400,000 for these purposes.

AB1-engrossed,9 Section 9. 30.12 (1g) (m) of the statutes is created to read:

AB1-engrossed,12,15 30.12 (1g) (m) A structure or deposit that is related to the construction, access, or operation of a new manufacturing facility in a navigable stream located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,10 Section 10. 30.123 (6) (f) of the statutes is created to read:

AB1-engrossed,12,21 30.123 (6) (f) The construction or maintenance of bridges and the construction or placement and maintenance of culverts that are related to the construction, access, or operation of a new manufacturing facility and that affect a portion of a navigable stream within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,11 Section 11. 30.123 (6m) (intro.) of the statutes is amended to read:

AB1-engrossed,13,3 30.123 (6m) Permits in lieu of exemptions. (intro.) The department may decide to require that a person engaged in an activity that is exempt under sub. (6) (d) or (f) apply for an individual permit or seek authorization under a general permit if the department has conducted an investigation and visited the site of the activity and has determined that conditions specific to the site require restrictions on the activity in order to prevent any of the following:

AB1-engrossed,12 Section 12. 30.19 (1m) (h) of the statutes is created to read:

AB1-engrossed,13,8 30.19 (1m) (h) Any activity that affects a portion of a navigable stream and that is related to the construction, access, or operation of a new manufacturing facility within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,13 Section 13. 30.195 (7) of the statutes is renumbered 30.195 (7) (intro.) and amended to read:

AB1-engrossed,13,12 30.195 (7) Application of section. (intro.) This section does not apply to municipal any of the following:

AB1-engrossed,13,14 (a) Municipal or county-owned lands in counties having a population of 750,000 or more.

AB1-engrossed,14 Section 14. 30.195 (7) (b) of the statutes is created to read:

AB1-engrossed,13,18 30.195 (7) (b) Activity related to the construction, access, or operation of a new manufacturing facility located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,15 Section 15. 61.57 of the statutes is renumbered 61.57 (intro.) and amended to read:

AB1-engrossed,14,2 61.57 Acquisition of recycling or resource recovery facilities without bids. (intro.) A village may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 61.54 if the village invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects.:

AB1-engrossed,16 Section 16. 61.57 (1) and (2) of the statutes are created to read:

AB1-engrossed,14,4 61.57 (1) A recycling or resource recovery facility.

AB1-engrossed,14,6 (2) If the village contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

AB1-engrossed,14,7 (a) Water and sewer systems.

AB1-engrossed,14,8 (b) Wastewater treatment facilities.

AB1-engrossed,17 Section 17. 62.155 of the statutes is renumbered 62.155 (intro.) and amended to read:

AB1-engrossed,14,16 62.155 Acquisition of recycling or resource recovery facilities without bids. (intro.) A city may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 62.15 if the city invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects. :

AB1-engrossed,18 Section 18. 62.155 (1) and (2) of the statutes are created to read:

AB1-engrossed,14,18 62.155 (1) A recycling or resource recovery facility.

AB1-engrossed,14,20 (2) If the city contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

AB1-engrossed,14,21 (a) Water and sewer systems.

AB1-engrossed,14,22 (b) Wastewater treatment facilities.

AB1-engrossed,18d Section 18d. 66.0203 (2) (bm) of the statutes is created to read:

AB1-engrossed,15,3 66.0203 (2) (bm) Once a petition is filed under par. (b), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after one of the following occurs:

AB1-engrossed,15,5 1. Subject to subd. 2., the petition is dismissed by the court under sub. (8) or the board under sub. (9).

AB1-engrossed,15,7 2. If the petition is dismissed as described under subd. 1. and the dismissal is appealed as described under s. 66.0209, all appeals are exhausted.

AB1-engrossed,15,8 3. An incorporation referendum is held in the town.

AB1-engrossed,18e Section 18e. 66.0203 (10) of the statutes is created to read:

AB1-engrossed,15,16 66.0203 (10) Certain towns may become a city or village. A town that is adjacent to a city or village that contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m) may become a city or village if the town holds, and approves, an incorporation referendum as described in s. 66.0211 (3). None of the other procedures contained in ss. 66.0201 to 66.0213 need to be fulfilled, and no approval by the board under s. 66.0207 is necessary for the town to become a city or village.

AB1-engrossed,18g Section 18g. 66.0215 (1m) of the statutes is created to read:

AB1-engrossed,15,20 66.0215 (1m) Annexation limitation. Once a petition is filed under sub. (1), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after the referendum is held in the town.

AB1-engrossed,18i Section 18i. 66.02162 (1m) of the statutes is created to read: