1. An amount of present value of the subsidy for the clean water fund program that is specified for that biennium under par. (d) (b) and is based on the amount included in the biennial finance plan under par.
sub. (3) (a) 6.
2. The amount of public debt, authorized under s. 20.866 (2) (tc), that the state may contract for the purposes of s. 281.58 and this section the clean water fund program.
3. The amount of revenue obligations, authorized under sub. (4) (f), that may be issued for the purposes specified in s. 25.43 (3) of the clean water fund program.
(b) The amount of present value of the subsidy for the clean water fund program that is required to be specified under par. (c) (a) 1. and approved by the legislature under this paragraph is as follows:
1. Equal to $83,400,000 $90,200,000 during the 1995-97 1997-99 biennium.
3. Equal to $1,000 for any biennium after the 1995-97 1997-99 biennium.
(c) The department of administration may allocate amounts approved under par. (d) (b) as the present value of subsidies for financial assistance under this section and s. 281.58 the clean water fund program, including financial hardship assistance and assistance for the additional costs of approved projects. The department of administration may allocate amounts from the amount approved under par. (d) (b) for a biennium until December 30 of the fiscal year immediately following the biennium for projects for which complete applications under s. 281.58 (9) (a) are submitted before the end of the biennium.
(d) The department may expend, for financial assistance in a biennium other than financial hardship assistance under s. 281.58 (13) (e), an amount up to 85% of the amount approved by the legislature under par. (d) (b). The department may expend such amount only from the percentage of the amount approved under par. (d)
(b) that is not available under par. (f) (e) for financial hardship assistance.
(e) The department may expend, for financial hardship assistance in a biennium under s. 281.58 (13) (e), an amount up to 15% of the amount approved by the legislature under par. (d) (b) for that biennium. The department may expend such amount only from the percentage of the amount approved by the legislature under par. (d)
(b) that is not available under par. (e) (d) for financial assistance.
(f) Using the amount approved under par. (d)
(b) as a base, the department of administration shall calculate the present value of the actual subsidy of each clean water fund program loan or grant to be made for those projects in each biennium that are approved for financial assistance by the 2 departments. The present value shall be discounted as provided under par. sub. (3) (a) 6.
27,3558
Section 3558
. 281.59 (3) (j) of the statutes is amended to read:
281.59 (3) (j) No later than November 1 of each odd-numbered year, the department of administration and the department jointly shall submit a report, to the building commission and committees as required under par. (bm), on the implementation of the amount established under par. (d) sub. (3e) (b) as required under s. 281.58 (9m) (e), and on the operations and activities of the clean water fund program, the safe drinking water loan program and the land recycling loan program for the previous biennium.
27,3559
Section 3559
. 281.59 (3e) (title) of the statutes is created to read:
281.59 (3e) (title) Clean water fund program expenditures.
27,3560
Section 3560
. 281.59 (3m) of the statutes is created to read:
281.59 (3m) Land recycling loan program expenditures. (a) No moneys may be expended for the land recycling loan program in a biennium until the legislature reviews and approves, as part of the biennial budget act for the biennium, an amount of present value of the subsidy for the land recycling loan program that is specified for that biennium under par. (b) and is based on the amount included in the biennial finance plan under sub. (3) (a) 6e.
(b) The amount of present value of the subsidy for the land recycling loan program that is approved by the legislature under this paragraph is as follows:
1. Equal to $4,500,000 during the 1997-99 biennium.
2. Equal to $1,000 for any biennium after the 1997-99 biennium.
(c) The department of administration may allocate amounts approved under par. (b) as the present value of subsidies for financial assistance under the land recycling program.
(d) Using the amount approved under par. (b) as a base, the department of administration shall calculate the present value of the actual subsidy of each land recycling loan made for those projects in each biennium that are approved for financial assistance. The present value shall be discounted as provided under sub. (3) (a) 6e.
27,3561
Section 3561
. 281.59 (3s) of the statutes is created to read:
281.59 (3s) Safe drinking water loan program expenditures. (a) No moneys may be expended for the safe drinking water loan program in a biennium until the legislature reviews and approves all of the following as part of the biennial budget act for the biennium:
1. An amount of present value of the subsidy for the safe drinking water loan program that is specified for that biennium under par. (b) and is based on the amount included in the biennial finance plan under sub. (3) (a) 6m.
2. The amount of public debt, authorized under s. 20.866 (2) (td), that the state may contract for the purposes of the safe drinking water loan program.
(b) The amount of present value of the subsidy for the safe drinking water loan program that is approved by the legislature under this paragraph is as follows:
1. Equal to $21,000,000 during the 1997-99 biennium.
2. Equal to $1,000 for any biennium after the 1997-99 biennium.
(c) The department of administration may allocate amounts approved under par. (b) as the present value of subsidies for financial assistance under the safe drinking water program.
(d) Using the amount approved under par. (b) as a base, the department of administration shall calculate the present value of the actual subsidy of each safe drinking water loan
or grant made for those projects in each biennium that are approved for financial assistance. The present value shall be discounted as provided under sub. (3) (a) 6m.
27,3562
Section 3562
. 281.59 (4) (am) of the statutes is amended to read:
281.59 (4) (am) Deposits, appropriations or transfers to the clean water environmental improvement fund for the purposes specified in s. 25.43 (3) of the clean water fund program may be funded with the proceeds of revenue obligations issued subject to and in accordance with subch. II of ch. 18 or in accordance with subch. IV of ch. 18 if designated a higher education bond.
27,3563
Section 3563
. 281.59 (4) (c) of the statutes is amended to read:
281.59 (4) (c) The building commission may pledge any portion of revenues received or to be received in the fund established in par. (b) or the clean water
environmental improvement fund to secure revenue obligations issued under this subsection. The pledge shall provide for the transfer to the clean water environmental improvement fund of all pledged revenues, including any interest earned on the revenues, which are in excess of the amounts required to be paid under s. 20.320 (1) (c) and (u) for the purposes specified in s. 25.43 (3)
of the clean water fund program. The pledge shall provide that the transfers be made at least twice yearly, that the transferred amounts be deposited in the clean water
environmental improvement fund and that the transferred amounts are free of any prior pledge.
27,3564
Section 3564
. 281.59 (9) (a), (am) and (b) (intro.) and 1. of the statutes are amended to read:
281.59 (9) (a) A loan approved under this section and s. 281.58 the clean water fund program, the safe drinking water loan program or the land recycling loan program shall be for no longer than 20 years, as determined by the department of administration, be fully amortized not later than 20 years after the original date of the note, and require the repayment of principal and interest, if any, to begin not later than 12 months after the expected date of completion of the project that it funds, as determined by the department of administration.
(am) The department of administration, in consultation with the department, may establish those terms and conditions of a financial assistance agreement that relate to its financial management, including what type of municipal obligation, as set forth under s. 66.36, is required for the repayment of the financial assistance. Any terms and conditions established under this paragraph by the department of administration shall comply with the requirements of this section and s. 281.58, 281.60 or 281.61. In setting such the terms and conditions, the department of administration may consider factors that the department of administration finds are relevant, including the type of municipal obligation evidencing the loan, the pledge of security for the municipal obligation and the municipality's applicant's creditworthiness.
(b) (intro.) As a condition of receiving financial assistance under this section and s. 281.58, a municipality the clean water fund program, the safe drinking water loan program or the land recycling loan program, an applicant shall do all of the following:
1. Pledge the security, if any, required by the rules promulgated by the department of administration under this section and s. 281.58, 281.60 or 281.61.
27,3565
Section 3565
. 281.59 (11) of the statutes is amended to read:
281.59 (11) Financial assistance payments. (a) The department of natural resources and the department of administration may enter into a financial assistance agreement with a municipality an applicant for which the department of administration has allocated subsidy under s. 281.58 (9m), 281.60 (8) or 281.61 (8) if the
municipality applicant meets the conditions under sub. (9) and s. 281.58 (14) and the other requirements under this section and s. 281.58, 281.60 or 281.61.
(am) The department of administration shall make the financial assistance payments to a municipality which an applicant that has entered into a financial assistance agreement under par. (a) or to the municipality's
applicant's designated agent.
(b) If a municipality fails to make a principal repayment or interest payment after its due date, the department of administration shall place on file a certified statement of all amounts due under this section and s. 281.58, 281.60 or 281.61. After consulting the department, the department of administration may collect all amounts due by deducting those amounts from any state payments due the municipality or may add a special charge to the amount of taxes apportioned to and levied upon the county under s. 70.60. If the department of administration collects amounts due, it shall remit those amounts to the fund to which they are due and notify the department of that action.
(c) The department of administration may retain the last payment under a financial assistance agreement until the department of natural resources and the department of administration determine that the project is completed and meets the applicable requirements of this section and s. 281.58, 281.60 or 281.61 and that the conditions of the financial assistance agreement are met.
27,3566
Section 3566
. 281.59 (13m) of the statutes is amended to read:
281.59 (13m) Legislative moral obligation. The building commission may, at the time the loan is made, by resolution designate a loan made under this section and s. 281.58 the clean water fund program as one to which this subsection applies. If at any time the payments received or expected to be received from a municipality on any loan so designated are pledged to secure revenue obligations of the state issued pursuant to subch. II of ch. 18 and are insufficient to pay when due principal of and interest on such loan, the department of administration shall certify the amount of such insufficiency to the secretary of administration, the governor and the joint committee on finance. If the certification is received by the secretary of administration in an even-numbered year before the completion of the budget under s. 16.43, the secretary of administration shall include the certified amount in the budget compilation. In any event, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so requested for the purpose of payment of the revenue obligation secured thereby. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make the appropriation.
27,3567
Section 3567
. 281.59 (13s) of the statutes is amended to read:
281.59 (13s) Powers. The department of administration may audit, or contract for audits of, projects receiving financial assistance under this section and s. 281.58 the clean water fund program, the safe drinking water loan program and the land recycling loan program.
27,3568
Section 3568
. 281.59 (14) of the statutes is amended to read:
281.59 (14) Rules. The department of administration shall promulgate rules that are necessary for the proper execution of this section and of its responsibilities under s. ss. 281.58, 281.60 and 281.61.
27,3569
Section 3569
. 281.60 of the statutes is created to read:
281.60 Land recycling loan program. (1) Definitions. In this section:
(a) “Eligible applicant" means
an individual, corporation, partnership, association, commission or political subdivision.
(am) “Landfill" has the meaning given in s. 289.01 (20).
(b) “Land recycling loan program" means the program administered under this section with financial management provided under s. 281.59.
(c) “Market interest rate" means the interest at the effective rate of a revenue obligation issued by this state to fund a loan or portion of a loan for a clean water fund program project under s. 281.58.
(d) “Political subdivision" means a city, village, town or county.
(e) “Site or facility" has the meaning given in s. 292.35 (1) (f).
(2) General. The department and the department of administration may administer a program to provide financial assistance to eligible applicants for projects to remedy environmental contamination of sites or facilities at which environmental contamination has affected groundwater or surface water or threatens to affect groundwater or surface water. The department and the department of administration may provide financial assistance under this section to an eligible applicant only if the eligible applicant owns the contaminated site or facility. The department and the department of administration may not provide financial assistance under this section to remedy environmental contamination at a site or facility that is not a landfill if the eligible applicant caused the environmental contamination.
(2r) Methods of providing financial assistance. The following methods of providing financial assistance may be used under the land recycling loan program:
(a) Making loans below the market interest rate for projects described in sub. (2).
(b) Purchasing or refinancing the obligation of an eligible applicant if the obligation was incurred to finance the cost of a project described in sub. (2) and the obligation was initially incurred after May 17, 1988.
(c) Guaranteeing, or purchasing insurance for, obligations incurred to finance the cost of projects described in sub. (2) if the guarantee or insurance will provide credit market access or reduce interest rates.
(d) Providing payments to the board of commissioners of public lands to reduce principal or interest payments, or both, on loans made to political subdivisions under subch. II of ch. 24 by the board of commissioners of public lands for projects that are eligible for financial assistance under the land recycling loan program.
(3) Notice of intent to apply. (a) An eligible applicant shall submit notice of its intent to apply for financial assistance under the land recycling loan program. An eligible applicant shall submit the notice at least 6 months before the beginning of the fiscal year in which it will request to receive funding. The notice shall be in a form prescribed by the department and the department of administration.
(b) The department may waive par. (a) upon the written request of an eligible applicant.
(5) Application. After submitting a notice of intent to apply under sub. (3) (a) or obtaining a waiver under sub. (3) (b), an eligible applicant shall submit an application for land recycling loan program financial assistance to the department. The eligible applicant shall submit the application before the April 30 preceding the beginning of the fiscal year in which the eligible applicant is requesting to receive the financial assistance. The application shall be in the form and include the information required by the department and the department of administration. An eligible applicant may not submit more than one application per project per year.
(6) Priority list. The department shall establish a priority list that ranks each land recycling loan program project. The department shall promulgate rules for determining project rankings based on the potential of projects to reduce environmental pollution and threats to human health and, for sites and facilities that are not landfills, the extent to which projects will prevent the development of undeveloped land by making land available for redevelopment after a cleanup is conducted. Before the department establishes the priority list, the department shall consider the recommendations of the department of administration and the department of commerce.
(7) Approval of application. The department shall approve an application received under sub. (5) after all of the following occur:
(a) The project is ranked on the priority list under sub. (6).
(b) The department determines that the project meets the eligibility requirements under this section.
(c) The department of administration determines that the eligible applicant will meet the requirements of s. 281.59 (9) (b).
(d) The legislature has approved an amount under s. 281.59 (3m) (b) for the biennium.
(8) Funding list; allocation of funding. (a) The department shall establish a funding list for each fiscal year that ranks projects of eligible applicants that submit approvable applications under sub. (5) before the April 30 preceding the beginning of the fiscal year in the same order that they appear on the priority list under sub. (6). If sufficient funds are not available to fund all approved applications for financial assistance, the department of administration shall allocate funding to projects that are approved under sub. (7) in the order that they appear on the funding list, except as follows:
1. The department of administration may not allocate more than 40% of the available funds in each fiscal year to projects to remedy contamination at landfills.
2. In any biennium, no eligible applicant may receive more than 25% of the amount established under s. 281.59 (3m) (b) for that biennium.
(b) In allocating subsidy under this subsection, the department of administration shall adhere to the amount approved by the legislature for each biennium under s. 281.58 (3m) (b).
(8m) Conditions of financial assistance. As a condition of receiving financial assistance under the land recycling loan program, an eligible applicant shall do all of the following:
(a) Establish a dedicated source of revenue for the repayment of the financial assistance.
(b) Comply with those provisions of 33 USC 1381 to 1387, this chapter, and the rules and regulations promulgated under those provisions, that the department specifies.
(c) Allow access to the project by representatives of the department for the purpose of making inspections.
(9) Financial assistance commitments. The department and the department of administration may, at the request of an eligible applicant, issue a notice of financial assistance commitment after the eligible applicant's application for land recycling loan program financial assistance has been approved and funding has been allocated under sub. (8) for the eligible applicant's project. The notice of financial assistance commitment shall specify the conditions that the eligible applicant must meet to secure financial assistance and shall include the estimated repayment schedules and other terms of financial assistance.
(10) Deadline for closing. If funding is allocated to a project under sub. (8) for a loan and the loan is not closed before April 30 of the year following the year in which funding is allocated, the department of administration shall release the funding allocated to the project.
(11) Loan interest rates. The interest rate on a land recycling loan program loan shall be 55% of market interest rate.
(11m) Service fee. The department and the department of administration shall jointly charge and collect an annual service fee for reviewing and acting upon land recycling loan program applications and servicing financial assistance agreements. The fee shall be in addition to interest payments at the rate under sub. (11). For the 1997-99 fiscal biennium, the service fee shall be 0.5% of the loan balance. Fee amounts for later biennia shall be established in the biennial finance plan under s. 281.59 (3) (a) 8. The department and the department of administration shall specify in the biennial finance plan a fee designed to cover the costs of reviewing and acting upon land recycling loan program applications and servicing financial assistance agreements.
(12) Sale of site or facility. (a) An eligible applicant may not sell a site or facility, or portion of a site or facility, for which the eligible applicant has received a loan under this section, while the loan is outstanding, for less than fair market value.
(b) If an eligible applicant sells a site or facility, or portion of a site or facility, for which the eligible applicant has received a loan under this section, the eligible applicant shall do the following:
1. If the sale proceeds are less than or equal to the remaining loan balance, pay the sale proceeds to the department of administration to repay all or a portion of the loan.
2. If the sale proceeds are greater than the remaining loan balance but less than or equal to the cost of the land plus the cost of the cleanup, pay an amount equal to the remaining loan balance to the department of administration and retain the remainder of the sale proceeds.
