1997 - 1998 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1997 ASSEMBLY BILL 861
March 2, 1998 - Offered by Representative Johnsrud.
AB861-ASA1,1,6 1An Act to amend 25.47, 101.143 (3) (cm), 101.143 (4) (b) (intro.) and 101.143 (4)
2(cm); and to create 20.143 (3) (s), 20.143 (3) (t), 101.143 (1) (cq), 101.143 (3) (cp),
3101.143 (4) (c) 11. and 12., 101.143 (4s) and 101.143 (11) of the statutes;
4relating to: reimbursement for costs incurred because of discharges from
5certain petroleum product storage tanks, authorizing revenue obligations to be
6contracted and making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB861-ASA1, s. 1 7Section 1. 20.143 (3) (s) of the statutes is created to read:
AB861-ASA1,2,58 20.143 (3) (s) Petroleum storage environmental remedial action revenue
9obligation repayment.
From the fund created under s. 101.143 (11) (b), all moneys
10received by the fund and not transferred under s. 101.143 (11) (c) to the petroleum
11inspection fund, for the purpose of the retirement of revenue obligations, providing
12for reserves and for operations relating to the management and retirement of

1revenue obligations issued under s. 101.143 (11). All moneys received are irrevocably
2appropriated in accordance with subch. II of ch. 18 and further established in
3resolutions authorizing the issuance of the revenue obligations and setting forth the
4distribution of funds to be received thereafter. Estimated disbursements under this
5paragraph shall not be included in the schedule under s. 20.005.
AB861-ASA1, s. 2 6Section 2. 20.143 (3) (t) of the statutes is created to read:
AB861-ASA1,2,137 20.143 (3) (t) Petroleum storage environmental remedial action revenue
8obligation funding.
As a continuing appropriation, all proceeds from revenue
9obligations issued under s. 101.143 (11) and deposited into the fund in the state
10treasury created under s. 18.57 (1), for paying awards under s. 101.143 (4), providing
11for reserves and for expenses of issuance and management of the revenue
12obligations. Estimated disbursements under this paragraph shall not be included in
13the schedule under s. 20.005.
AB861-ASA1, s. 3 14Section 3. 25.47 of the statutes, as affected by 1997 Wisconsin Act 27, is
15amended to read:
AB861-ASA1,2,21 1625.47 Petroleum inspection fund. There is established a separate
17nonlapsible trust fund designated as the petroleum inspection fund, to consist of the
18fees imposed
any revenues derived under s. 168.12 (1) that are not pledged to the
19fund created under s. 101.143 (11) (b), the moneys transferred under s. 101.143 (11)
20(c)
, the payments under s. 101.143 (4) (h) 1m., the payments under s. 101.143 (5) (a)
21and the net recoveries under s. 101.143 (5) (c).
AB861-ASA1, s. 4 22Section 4. 101.143 (1) (cq) of the statutes is created to read:
AB861-ASA1,3,223 101.143 (1) (cq) "Natural attenuation" means the reduction in the
24concentration and mass of a substance, and the products into which a substance

1breaks down, in groundwater due to naturally occurring physical, chemical and
2biological processes without human intervention.
AB861-ASA1, s. 5 3Section 5. 101.143 (3) (cm) of the statutes is amended to read:
AB861-ASA1,3,104 101.143 (3) (cm) Monitoring as remedial action. An owner or operator or person
5owning a home oil tank system may, with the approval of the department of natural
6resources or, if the discharge is covered under s. 101.144 (2) (b), the department of
7commerce, satisfy the requirements of par. (c) 2. and 3. by proposing and
8implementing monitoring to ensure the effectiveness of the natural process of
9degradation of petroleum product contamination in soil or of natural attenuation in
10groundwater, or both, if none of the environmental factors in par. (cp) is present
.
AB861-ASA1, s. 6 11Section 6. 101.143 (3) (cp) of the statutes is created to read:
AB861-ASA1,3,1412 101.143 (3) (cp) Sites with environmental factors. 1. This paragraph applies
13if at least one of the following environmental factors exists in connection with a
14petroleum product discharge:
AB861-ASA1,3,1715 a. The concentration of contaminates within the area of contamination is
16increasing or the boundaries of the area of concentration are expanding or
17advancing.
AB861-ASA1,3,2018 b. It is confirmed that the discharge has resulted in a concentration of
19contaminants in a private or public potable well that exceeds a preventive action
20limit established under s. 160.15.
AB861-ASA1,3,2121 c. Contamination exists in bedrock or within one meter of bedrock.
AB861-ASA1,3,2322 d. Petroleum product that is not in the dissolved phase is present with a
23thickness of 0.01 feet or more, as shown by more than one measurement.
AB861-ASA1,3,2424 e. Surface water or a wetland has been contaminated.
AB861-ASA1,4,10
12. If a site has an environmental factor, the owner or operator or person owning
2a home oil tank system shall complete an analysis of alternative remedial actions,
3in accordance with rules promulgated by the department of natural resources under
4s. 292.11, to address the contamination caused by the discharge. The analysis shall
5include estimates of the costs of implementing each alternative. The owner or
6operator or person owning a home oil tank system shall submit the analysis to the
7department of commerce and the department of natural resources. The owner or
8operator or person owning a home oil tank system may not begin the remedial action
9until the department of commerce has approved the cost estimates and the
10department of natural resources has approved the remedial action.
AB861-ASA1,4,1211 3. When the department receives an analysis under subd. 2., the department
12may do one of the following:
AB861-ASA1,4,1313 a. Establish a maximum reimbursable cost for the remedial action.
AB861-ASA1,4,1614 b. Require the owner or operator or person owning a home oil tank system to
15use specified service providers or to conduct the remedial action in conjunction with
16the remedial action for another discharge.
AB861-ASA1,4,1817 c. Require the owner or operator or person owning a home oil tank system to
18use a competitive public bidding process to select service providers.
AB861-ASA1, s. 7 19Section 7. 101.143 (4) (b) (intro.) of the statutes is amended to read:
AB861-ASA1,4,2320 101.143 (4) (b) Eligible costs. (intro.) Eligible Except as provided in par. (c),
21eligible
costs for an award under par. (a) include actual costs or, if the department
22establishes a schedule usual and customary cost under par. (cm) for an item, usual
23and customary costs for the following items only:
AB861-ASA1, s. 8 24Section 8. 101.143 (4) (c) 11. and 12. of the statutes are created to read:
AB861-ASA1,5,5
1101.143 (4) (c) 11. Costs of excavating soils if the level of contamination in the
2soils is less than numerical residual contaminant levels developed in accordance
3with rules promulgated by the department of natural resources under s. 292.11 and
4approved by the department of natural resources or, if the discharge is covered under
5s. 101.144 (2) (b), by the department of commerce.
AB861-ASA1,5,76 12. Costs in excess of maximum reimbursable costs established by the
7department under sub. (3) (cp) 3. a. or (4s) (b) 1.
AB861-ASA1, s. 9 8Section 9. 101.143 (4) (cm) of the statutes is amended to read:
AB861-ASA1,5,129 101.143 (4) (cm) Usual and customary costs. The department may shall
10establish a schedule of usual and customary costs for any some or all of the items
11under par. (b) and may use that schedule to determine the amount of a claimant's
12eligible costs.
AB861-ASA1, s. 10 13Section 10. 101.143 (4s) of the statutes is created to read:
AB861-ASA1,5,1814 101.143 (4s) Remedial action review. (a) The department of commerce or the
15department of natural resources may review remedial actions being conducted for
16which claims have been or will be filed under sub. (3) to determine the efficacy and
17cost-effectiveness of the remedial action. The department of commerce may review
18remedial actions to determine whether ineligible costs are being incurred.
AB861-ASA1,5,2019 (b) Following a review under par. (a) of a remedial action, the department of
20commerce may do one or more of the following:
AB861-ASA1,5,2221 1. Establish a maximum reimbursable cost for the remedial action if the
22department has not already done so.
AB861-ASA1,5,2523 2. Require the owner or operator or person owning a home oil tank system to
24use specified service providers or to conduct the remainder of the remedial action in
25conjunction with the remedial action for another discharge.
AB861-ASA1,6,4
13. Require the owner or operator or person owning a home oil tank system to
2develop an analysis of alternative remedial actions, one of which shall be
3implemented following approval by the department of natural resources or, if the
4discharge is covered under s. 101.144 (2) (b), by the department of commerce.
AB861-ASA1,6,115 (c) The department may not reimburse an owner or operator or person owning
6a home oil tank system for any costs incurred in connection with a discharge after
7the owner or operator or person owning a home oil tank system, or the consultant
8retained by the owner or operator or person owning a home oil tank system, fails to
9provide information needed for a review under par. (a) or for any costs incurred after
10the owner or operator or person owning a home oil tank system fails to comply with
11requirements imposed under par. (b) 2. or 3.
AB861-ASA1, s. 11 12Section 11. 101.143 (11) of the statutes is created to read:
AB861-ASA1,6,1513 101.143 (11) Revenue obligations. Awards under sub. (4) may be funded with
14the proceeds of revenue obligations issued subject to and in accordance with subch.
15II of ch. 18.
AB861-ASA1,6,1816 (b) The department may, under s. 18.56 (5), direct the department of revenue
17to deposit in a separate fund in the state treasury revenues derived under s. 168.12
18(1).
AB861-ASA1,6,2519 (c) The building commission may pledge revenues received or to be received in
20the fund established in par. (b) to secure revenue obligations issued under this
21subsection. The pledge shall provide for the transfer to the petroleum inspection
22fund of all pledged revenues, including any interest earned on the revenues, that are
23in excess of the amounts required to be paid under s. 20.143 (3) (s). The pledge shall
24provide that the transfers be made at least quarterly and that the transferred
25amounts are free of any prior pledge.
AB861-ASA1,7,3
1(d) The department shall have all other powers necessary and convenient to
2distribute the pledged revenues and to distribute the proceeds of the revenue
3obligations in accordance with subch. II of ch. 18.
AB861-ASA1,7,74 (e) The department may enter into agreements with the federal government
5or its agencies, political subdivisions of this state or private individuals or entities
6to insure or in any other manner provide additional security for the revenue
7obligations issued under this subsection.
AB861-ASA1,7,248 (f) Revenue obligations may be contracted by the building commission when it
9reasonably appears to the building commission that all obligations incurred under
10this subsection can be fully paid from moneys received or anticipated and pledged to
11be received on a timely basis. If the building commission proposes to contract
12revenue obligations under this subsection, the building commission shall notify the
13joint committee on finance in writing of the proposed action. If the cochairpersons
14of the committee do not notify the building commission that the committee has
15scheduled a meeting for the purpose of reviewing the proposed action within 14
16working days after the date of the building commission's notification, the building
17commission may contract the revenue obligations as proposed. If, within 14 working
18days after the date of the building commission's notification, the cochairpersons of
19the committee notify the building commission that the committee has scheduled a
20meeting for the purpose of reviewing the proposed action, the building commission
21may contract the revenue obligations only upon the approval of the committee.
22Revenue obligations issued under this subsection shall not exceed $400,000,000 in
23principal amount, excluding obligations issued to refund outstanding revenue
24obligations.
AB861-ASA1,8,5
1(g) Unless otherwise expressly provided in resolutions authorizing the
2issuance of revenue obligations or in other agreements with the holders of revenue
3obligations, each issue of revenue obligations under this subsection shall be on a
4parity with every other revenue obligation issued under this subsection and in
5accordance with subch. II of ch. 18.
AB861-ASA1, s. 12 6Section 12. Initial applicability.
AB861-ASA1,8,97 (1) Characterization of discharges. The treatment of section 101.143 (3) (cp)
8of the statutes first applies to remedial actions that are begun on the effective date
9of this subsection.
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