Comparison with federal regulations
There are no newly-developed or proposed federal regulations addressed by this rule. However, Wisconsin Securities Law and rules are generally coordinated with corresponding federal requirements, pursuant to s.
551.615, Stats.
Comparison with rules in adjacent states
These rule chapters reflect the 2002 Uniform Securities Act which Iowa and Minnesota have adopted and written rules; Illinois and Michigan have not.
Summary of factual data and analytical methodologies
The division applied its own experience in its regulation of securities generally for the minor clarifications, corrections, revisions and other matters addressed by the rule.
Analysis and supporting documentation used to determine effect on small business
The rule makes minor clarifications, corrections and revisions for conformity with existing statutes; imposes no additional substantive requirements; and reduces the same.
Small Business Impact
This proposed rule will have no adverse impact on small businesses.
Fiscal Estimate
The rule places no additional duties or burdens on state or local government, and hence has no affect on costs to either.
Agency Contact Information
For questions regarding the agency's internal processing of the proposed rule, contact:
Mark Schlei, Deputy General Counsel
Dept. of Financial Institutions, Office of the Secretary
P.O. Box 8861, Madison, WI 53708-8861
Phone: (608) 267-1705
Email: mark.schlei@ wisconsin.gov.
For substantive questions on the rule, contact:
Randall Schumann, Attorney
Dept. of Financial Institutions, Division of Securities
P.O. Box 1768, Madison, WI 53701-1768
Phone: (608) 266-3414
Notice of Hearings
Natural Resources
Environmental Protection—General, Chs.
NR 100—
Environmental Protection—Water Supply, Chs.
NR 800—
NOTICE IS HEREBY GIVEN That pursuant to ss.
227.11 (2) (a) and
281.346 (3),
(4) (g),
(8) and
(12), and
281.35 (10) (b), Stats., the Department of Natural Resources will hold public hearings on revisions to Chapter
NR 142, Wis. Adm. Code, and the creation of Wis. Adm. Code Chapter
NR 850 Water Use Fees, Chapter
NR 852 Water Conservation and Water Use Efficiency, and Chapter
NR 856 Water Use Registration and Reporting, relating to implementation of the Great Lakes Compact and associated water use regulations.
Hearing Information
The hearings will be held on:
June 28, 2010, Monday, 6:00 p.m.
Ramada Plaza Terrace 1 & 2
6331 South 13th Street
Milwaukee, WI
June 29, 2010, Tuesday, 6:00 p.m.
Concurrent sessions will be held at the following two locations:
June 30, 2010, Wednesday, 6:00 p.m.
Concurrent sessions will be held at the following two locations:
Pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call James McLimans at (608) 266-2726 with specific information on your request at least 10 days before the date of the scheduled hearing.
Copies of Proposed Rules and Submittal of Written Comments
The order in which the three rule proposals will be considered will be decided at the time of hearing. The proposed rules and supporting documents, including the fiscal estimates, may be viewed and downloaded and comments electronically submitted at the following Internet site:
http://adminrules.wisconsin.gov. (Search this Web site using the Natural Resources Board Order Nos. DG-23-10 (NR 850 Water Use Fees), DG-24-10 (Water Conservation and Water Use Efficiency), and DG-25-10 (NR 856 Water Use Registration and Reporting).
Written comments on the proposed rules may be submitted via U.S. mail to Ms. Kristy Rogers, Bureau of Drinking Water and Groundwater, P.O. Box 7921, Madison, WI 53707 or by e-mail to
Kristy.Rogers@wisconsin.gov. Comments may be submitted until
July 7, 2010.
Written comments whether submitted electronically or by mail will have the same weight and effect as oral statements presented at the public hearings. If you do not have Internet access, a personal copy of the proposed rule and supporting documents may be obtained from Kristy Rogers, Bureau of Drinking Water and Groundwater, P.O. Box 7921, Madison, WI 53707 or by calling (608) 266-9254.
Analysis Prepared by Department of Natural Resources
CR 10-061, DNR # DG-23-10
NR 850 — Water Use Fees
Plain language analysis
The proposal contained in this order repeals a provision of an existing rule that provided authority to assess water withdrawal fees on persons making withdrawals from the waters of the state in amounts averaging 100,000 gallons per day or more in any 30-day period. Those fees ranged from $35 to $500 dollars depending on the amount of the withdrawal. However, the fee program and the associated registration program associated with it were not implemented by the Department.
Under the provisions of s.
281.346 (12), as created in
2009 Wisconsin Act 28, beginning in 2011, any person with a water supply system anywhere in the state with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period must pay to the Department an annual fee of $125. This rule clarifies that the annual $125 fee will cover all water supply systems on one property or a single public water supply. Section
281.346 (12)(c) further directs the Department to promulgate a rule specifying an additional annual fee for persons who withdraw more than 50,000,000 gallons per year from the waters of the Great Lakes basin—that is, from surface water or groundwater within the land area of the state draining to Lakes Michigan or Superior, or from those lakes. The proposed fee would increase per 50 million gallon increment as shown in the following table:
Great Lakes Basin-Specific Fee for
Withdrawals > 50 MGY
|
Amount Withdrawn
|
Fee Per Million Gallons
|
50 MGY to 100 MGY
|
$1.50
|
100 MGY to 150 MGY
|
$2.00
|
150 MGY to 200 MGY
|
$2.50
|
200 MGY to 250 MGY
|
$3.00
|
250 MGY to 300 MGY
|
$3.50
|
300 MGY to 350 MGY
|
$4.00
|
350 MGY to 400 MGY
|
$4.50
|
400 MGY to 450 MGY
|
$5.00
|
450 MGY to 500 MGY
|
$5.50
|
500 MGY +
|
$6.00
|
The fee would not exceed $9,500 annually for withdrawals from a water supply system on a contiguous property or a public water system. The fees specified in this rule will be assessed on a calendar year basis and will be due to the Department by June 30th of the following calendar year.
Comparison with federal regulations
There are no comparable federal regulations pertaining to fees for water withdrawals.
Comparison with rules in adjacent states
The following table compares water withdrawal fees in adjacent states.
Water Withdrawal Fee Comparison
|
Wisconsin
|
Illinois
|
Iowa
|
Michigan
|
Minnesota
|
$125 statutory fee—statewide — for water supply systems with the capacity to withdraw an average of 100,000 gallons-per-day or more in any 30-day period.
Proposed additional annual fee for Great Lakes Basin withdrawals exceeding 50 million gallons per year. The proposed fee would be assessed at an inclining rate in tiers of 50 million gallons as follows:
(50 – 100) $1.50/mil.
(100 – 150) $2/mil.
(150 – 200) $2.50/mil.
(200 – 250) $3/mil.
(250 – 300) $3.50/mil.
(300 – 350) $4 /mil.
(350 – 400) $4.50/mil.
(400 – 450) $5/mil.
(450 – 500) $5.50/mil.
(Above 500) $6/mil.
The fee would not exceed $9,500 annually for withdrawals from one property or public water system.
|
No annual water use fee.
|
Iowa charges an annual water use fee to each water use permittee designed to generate $500,000 each year. Permits are required for persons that withdraw at least 25,000 gallons in a 24-hour period during a calendar year; and the same fee is charged to each permittee.
For 2009, the annual fee was $135 for each permittee.
|
$200 annual reporting fee for withdrawals exceeding 100,000 gallons per day averaged over a consecutive 30-day period. (No annual fee for withdrawals for agricultural use.)
|
$140 minimum annual water use fee for withdrawals between 0 and 50 million
gallons.
Marginal fee rates for withdrawals exceeding 50 million gallons per year as follows:
(50 – 100) $3.50/mil.
(100 – 150) $4/mil.
(150 – 200) $4.50/mil.
(200 – 250) $5/mil.
(250 – 300) $5.50/mil.
(300 – 350) $6/mil.
(350 – 400) $6.50/mil.
(400 – 450) $7/mil.
(450 – 500) $7.50/mil.
(Above 500) $8/mil.
Maximum Annual water use fees:
$750 for any single agric. Irrigation permit;
$50,000 for an entity w/3 or fewer permits;
$75,000 for an entity w/4 to 5 permits;
$250,000 for an entity with > 5 permits;
$250,000 for a city of the first class;
$10,000 for a municipality that furnishes electric service and steam for home heating.
|
Summary of factual data and analytical methodologies
Based on available data and assumptions, the Department projects that the $125 annual fee will apply to approximately 4900 properties and generate just over $600,000 annually; and the proposed fee on withdrawals exceeding 50 million gallons per year will apply to approximately 200 to 250 properties in the Great Lakes basin and generate approximately $390,000 annually.
Analysis and supporting documentation used to determine rule's effect on small business
The Department lacks complete data on the number and nature of all operations withdrawing water above the threshold amount of 50 million gallons per year. However, based on the withdrawal data that does exist (e.g. high capacity well pumpage data), comparatively few small businesses will be affected by the rule.
Small Business Impact
The $125 annual fee will affect hundreds of small business throughout the state. However, the fee imposed on withdrawals exceeding 50 million gallons per year is expected to primarily affect public water systems, power companies, and large industrial operations in water-intensive industries. The rule will affect an unknown number of small businesses that withdraw more than 50 million gallons of water per year from waters within the Great Lakes basin; however the Department estimates that there are relatively few small businesses that withdraw water at levels exceeding the threshold amounts.
Fiscal Estimate
Rule summary
Section
281.346 (12) (c), directs the Department to promulgate a rule specifying an additional annual fee for persons who withdraw more than 50 million gallons per year (MGY) from the waters of the Great Lakes basin—that is, from surface water or groundwater within the land area of the state draining to Lakes Michigan or Superior, or from those lakes. The proposed fee would be assessed on marginal increments of withdrawals over 50 million gallons per year starting @ $1.50 per million gallons over 50 million, and would increase $0.50 per million gallons for each 50 million gallon increment as follows:
•
For amounts withdrawn between 50 MGY to 100 MGY $1.50/million gallons withdrawn
•
For amounts withdrawn between 100 MGY to 150 MGY $2.00/million gallons withdrawn
•
For amounts withdrawn between 150 MGY to 200 MGY $2.50/million gallons withdrawn
•
For amounts withdrawn between 200 MGY to 250 MGY $3.00/million gallons withdrawn
•
For amounts withdrawn between 250 MGY to 300 MGY $3.50/million gallons withdrawn
•
For amounts withdrawn between 300 MGY to 350 MGY $4.00/million gallons withdrawn
•
For amounts withdrawn between 350 MGY to 400 MGY $4.50/million gallons withdrawn
•
For amounts withdrawn between 400 MGY to 450 MGY $5.00/million gallons withdrawn
•
For amounts withdrawn between 450 MGY to 500 MGY $5.50/million gallons withdrawn
•
For amounts withdrawn in excess of 500 MGY
$6.00/million gallons withdrawn
The fee would not exceed $9,500 annually for withdrawals from a water supply system on a contiguous property or a public water system. The fee would take effect in 2011. Fee revenue will be deposited in a program revenue appropriation supporting Great Lakes Compact implementation. The Department anticipates that between 200 and 300 persons will pay the fee annually.
State fiscal impact
Revenues that will be generated as a result of the annual withdrawal fee are the result of the fee provisions enacted in to law in
2009 Wisconsin Act 28. The Department assumes that the statutory statewide base fee of $125 on persons with water supply systems with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period will be imposed on approximately 4900 persons and will generate approximately $612,500 annually. (Revenue from this base fee is not included on the attached fiscal estimate worksheet.)
Based on actual withdrawal data from public water supply systems and high capacity well owners, and assumptions related to surface water withdrawals, the Department expects that the fee will generate between $38000 and $400,000 annually. In addition, state-owned facilities (e.g., state fish hatcheries) that withdraw over 50 million gallons per year in the Great Lakes Basin would have to pay the fee. The Department lacks accurate data on total amounts of water withdrawn from state-owned facilities, therefore costs to the state are indeterminate at this time.
Local government fiscal impact
Based on 2009 data, there are approximately 180 public water systems in the Great Lakes Basin. Of those 180 systems, approximately 90 systems withdraw in excess of 50 million gallons per year and will be affected by this rule--e.g., systems withdrawing 100 million gallons of water per year will pay approximately $75 under the rule; systems withdrawing 1 billion gallons of water per year will pay approximately $4,600; and systems withdrawing 2.3 billion gallons of water per year will pay $9,500 per year. The Department anticipates that approximately 9 public water systems in the Great Lakes basin will pay the maximum $9,500 fee, 60 public water systems will pay a fee under $1,000, and more than 90 public water systems in the Great Lakes basin would pay no additional fee over the $125 statutory base fee.
Private sector fiscal impact
The Department lacks complete data on the number and nature of all operations withdrawing water above the threshold amount of 50 million gallons per year. However, based on the withdrawal data that does exist (e.g. high capacity well pumpage data), comparatively few small businesses will be affected by the rule.
Summary for state fiscal effect
Increase existing revenues.
Increase costs. May be possible to absorb within agency's budget.
