AB100,1438,3
1(c) Guaranteeing, or purchasing insurance for, obligations incurred to finance
2the cost of projects described in sub. (2) if the guarantee or insurance will provide
3credit market access or reduce interest rates.
AB100,1438,74 (d) Providing payments to the board of commissioners of public lands to reduce
5principal or interest payments, or both, on loans made to local governmental units
6under subch. II of ch. 24 by the board of commissioners of public lands for projects
7that are eligible for financial assistance under the safe drinking water loan program.
AB100,1438,12 8(3) Notice of intent to apply. (a) A local governmental unit shall submit notice
9of its intent to apply for financial assistance under the safe drinking water loan
10program at least 6 months before the beginning of the fiscal biennium in which it
11intends to receive the financial assistance. The notice shall be in a form prescribed
12by the department and the department of administration.
AB100,1438,1513 (b) If a local governmental unit does not apply for financial assistance by April
1430 of the 2nd year following the year in which it submitted notice under par. (a), the
15local governmental unit shall submit a new notice under par. (a).
AB100,1438,1716 (c) The department may waive par. (a) or (b) upon the written request of a local
17governmental unit.
AB100,1438,20 18(4) Engineering report. A local governmental unit seeking financial
19assistance for a project under this section shall submit an engineering report, as
20required by the department by rule.
AB100,1439,4 21(5) Application. After the department approves a local governmental unit's
22engineering report submitted under sub. (4), the local governmental unit shall
23submit an application for safe drinking water financial assistance to the department.
24The applicant shall submit the application before the April 30 preceding the
25beginning of the fiscal year in which the applicant wishes to receive the financial

1assistance. The application shall be in the form and include the information required
2by the department and the department of administration and shall include plans and
3specifications that are approvable by the department under this section. An
4applicant may not submit more than one application per project per year.
AB100,1439,11 5(6) Priority list. The department shall establish a priority list that ranks each
6safe drinking water loan program project. The department shall promulgate rules
7for determining project rankings that, to the extent possible, give priority to projects
8that address the most serious risks to human health, that are necessary to ensure
9compliance with the Safe Drinking Water Act, 42 USC 300f to 300j-26, and that
10assist local governmental units that are most in need on a per household basis,
11according to affordability criteria specified in the rules.
AB100,1439,13 12(7) Approval of application. The department shall approve an application
13received under sub. (5) after all of the following occur:
AB100,1439,1414 (a) The project is ranked on the priority list under sub. (6).
AB100,1439,1615 (b) The department determines that the project meets the eligibility
16requirements under this section.
AB100,1439,1817 (c) The department of administration determines that the local governmental
18unit will meet the requirements of s. 281.59 (9) (b).
AB100,1439,2019 (d) The legislature has approved an amount under s. 281.59 (3s) (b) 1. for the
20biennium.
AB100,1440,2 21(8) Funding list; allocation of funding. (a) The department shall establish
22a funding list for each fiscal year that ranks projects of local governmental units that
23submit approvable applications under sub. (5) in the same order that they appear on
24the priority list under sub. (6). If sufficient funds are not available to fund all
25approved applications for financial assistance, the department of administration

1shall allocate funding to projects that are approved under sub. (7) in the order that
2they appear on the funding list, except as follows:
AB100,1440,63 1. The department of administration shall allocate to projects for public water
4systems that regularly serve fewer than 10,000 persons 15% of the available funds
5in each fiscal year or such lesser amount that fully funds the eligible projects for
6those public water systems.
AB100,1440,87 2. In any biennium, no local governmental unit may receive more than 25% of
8the amount established under s. 281.59 (3s) (b) for that biennium.
AB100,1440,119 (b) In allocating subsidy under this subsection, the department of
10administration shall adhere to the amount approved by the legislature for each
11biennium under s. 281.59 (3s) (b).
AB100,1440,14 12(8m) Conditions of financial assistance. As a condition of receiving financial
13assistance under the safe drinking water loan program, a local governmental unit
14shall do all of the following:
AB100,1440,1615 (a) Establish a dedicated source of revenue for the repayment of the financial
16assistance.
AB100,1440,1917(b) Comply with those provisions of 42 USC 300f to 300j-26 and this chapter
18and the regulations and rules promulgated under those provisions that the
19department specifies.
AB100,1440,2120 (c) Develop and adopt a program of water conservation as required by the
21department.
AB100,1440,2422 (d) Develop and adopt a program of systemwide operation and maintenance of
23the public water system, including the training of personnel, as required by the
24department.
AB100,1440,2525 (e) Develop and adopt a user fee system.
AB100,1441,8
1(9) Financial assistance commitments. The department and the department
2of administration may, at the request of a local governmental unit, issue a notice of
3financial assistance commitment after the local governmental unit's application for
4safe drinking water financial assistance has been approved under sub. (7) and
5funding has been allocated under sub. (8) for the local governmental unit's project.
6The notice of financial assistance commitment shall specify the conditions that the
7local governmental unit must meet to secure financial assistance and shall include
8the estimated repayment schedules and other terms of the financial assistance.
AB100,1441,12 9(10) Deadline for closing. If funding is allocated to a project under sub. (8)
10for a loan and the loan is not closed before April 30 of the year following the year in
11which funding is allocated, the department of administration shall release the
12funding allocated to the project.
AB100,1441,14 13(11) Loan interest rates. (a) Except as provided under par. (b), the interest
14rate on a safe drinking water loan program loan shall be as follows:
AB100,1441,1615 1. For a local governmental unit that does not meet financial eligibility criteria
16established by the department by rule, 55% of market interest rate.
AB100,1441,1817 2. For a local governmental unit that meets financial eligibility criteria
18established by the department by rule, 33% of market interest rate.
AB100,1441,2119 (b) The department and the department of administration jointly may request
20the joint committee on finance to take action under s. 13.101 (11) to modify the
21percentage of market interest rate under par. (a) 1. or 2.
AB100,1441,22 22(12) Duties of the department. The department shall do all of the following:
AB100,1441,2423 (a) Promulgate rules establishing eligibility criteria for applicants and projects
24under this section.
AB100,1442,2
1(b) Promulgate rules that are necessary for the execution of its responsibilities
2under the safe drinking water loan program.
AB100,1442,43 (c) Cooperate with the department of administration in administering the safe
4drinking water loan program.
AB100,1442,75 (d) By May 1 of each even-numbered year, prepare and submit to the
6department of administration a biennial needs list that includes all of the following
7information:
AB100,1442,108 1. A list of drinking water projects that the department estimates will apply
9for financial assistance under the safe drinking water loan program during the next
10biennium.
AB100,1442,1211 2. The estimated cost and estimated construction schedule of each project on
12the list, and the total of the estimated costs of all projects on the list.
AB100,1442,1313 3. The estimated rank of each project on the priority list under sub. (6).
AB100,1442,1514 (e) Submit a biennial budget request under s. 16.42 for the safe drinking water
15loan program.
AB100,1442,1716 (f) Have the lead state role with the federal environmental protection agency
17concerning the safe drinking water loan program.
AB100,1442,2018 (g) Have the lead state role with local governmental units in providing safe
19drinking water loan program information, and cooperate with the department of
20administration in providing that information to local governmental units.
AB100,1442,2321 (h) Inspect periodically safe drinking water loan program project construction
22to determine project compliance with construction plans and specifications approved
23by the department and the requirements of the safe drinking water loan program.
AB100,1443,3
1(13) Capitalization grant. The department may enter into an agreement
2under 42 USC 300j-12 (a), with the federal environmental protection agency to
3receive a capitalization grant for the safe drinking water loan program.
AB100, s. 3571 4Section 3571. 281.62 of the statutes is created to read:
AB100,1443,5 5281.62 Other drinking water quality activities. (1) In this section:
AB100,1443,86 (a) "Community water system" means a public water system that serves at
7least 15 service connections used by year-round residents of the area served by the
8public water system or that regularly serves at least 25 year-round residents.
AB100,1443,109 (b) "Noncommunity water system" means a public water system that is not a
10community water system.
AB100,1443,1111 (c) "Public water system" has the meaning given in s. 281.61 (1) (c).
AB100,1443,14 12(2) (a) With the approval of the department of administration, the department
13may expend funds from the appropriation accounts under s. 20.320 (2) (s) and (x) for
14any of the following:
AB100,1443,1915 1. Providing a loan to the owner of a community water system or a nonprofit
16noncommunity water system to acquire land or a conservation easement from a
17willing seller or grantor to protect the source water of the water system from
18contamination and to ensure compliance with national primary drinking water
19regulations under 42 USC 300g-1.
AB100,1443,2120 2. Providing a loan to the owner of a community water system to do any of the
21following:
AB100,1444,222 a. Implement voluntary source water protection measures in areas delineated
23as provided in 42 USC 300j-13 in order to facilitate compliance with national
24primary drinking water regulations under 42 USC 300g-1 or otherwise significantly

1further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f
2to 300j-26.
AB100,1444,43 b. Implement a program for source water quality protection partnerships as
4provided in 42 USC 300j-14.
AB100,1444,75 3. Assisting the owner of a public water system to develop the technical,
6managerial and financial capacity to comply with national primary drinking water
7regulations under 42 USC 300g-1.
AB100,1444,984. Delineating or assessing source water protection areas as provided under 42
9USC 300j-13
.
AB100,1444,11105. Protecting wellhead areas from contamination as provided in 42 USC
11300h-7
.
AB100,1444,1512 (b) In any fiscal year, the department may not expend under par. (a) more than
1315% of the funds provided under 42 USC 300j-12 in that fiscal year. In any fiscal
14year, the department may not expend under par. (a) 1., 2., 3., 4. or 5. more than 10%
15of the funds provided under 42 USC 300j-12 in that fiscal year.
AB100,1444,18 16(3) (a) With the approval of the department of administration, the department
17may expend funds from the appropriation accounts under s. 20.320 (2) (s) and (x) for
18any of the following:
AB100,1444,19191. Public water system supervision as provided in 42 USC 300j-2 (a).
AB100,1444,2020 2. Technical assistance concerning source water protection.
AB100,1444,2221 3. Developing and implementing a capacity development strategy required
22under 42 USC 300g-9 (c).
AB100,1444,23234. Operator certification required under 42 USC 300g-8.
AB100,1444,2524 (b) In any fiscal year, the department may not expend under par. (a) more than
2510% of the funds provided under 42 USC 300j-12 in that fiscal year.
AB100,1445,5
1(4) With the approval of the department of administration, the department
2may expend funds from the appropriation accounts under s. 20.320 (2) (s) and (x) to
3provide technical assistance to public water systems serving 10,000 or fewer persons.
4In any fiscal year, the department may not expend under this subsection more than
52% of the funds provided under 42 USC 300j-12 in that fiscal year.
AB100, s. 3572 6Section 3572. 281.625 of the statutes is created to read:
AB100,1445,7 7281.625 Drinking water loan guarantee program. (1) In this section:
AB100,1445,108 (a) "Community water system" means a public water system that serves at
9least 15 service connections used by year-round residents or that regularly serves
10at least 25 year-round residents.
AB100,1445,1111 (b) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).
AB100,1445,1312 (c) "Noncommunity water system" means a public water system that is not a
13community water system.
AB100,1445,1414 (d) "Public water system" has the meaning given in s. 281.61 (1) (c).
AB100,1445,18 15(2) The department, in consultation with the department of administration,
16shall promulgate rules for determining whether a loan is an eligible loan under s.
17234.86 (3) for a loan guarantee under s. 234.86. The rules shall be consistent with
1842 USC 300j-12.
AB100,1445,22 19(3) The department shall determine whether a loan to the owner of a
20community water system or the nonprofit owner of a noncommunity water system
21is an eligible loan under s. 234.86 (3) for the purposes of the loan guarantee program
22under s. 234.86.
AB100,1446,2 23(4) With the approval of the department of administration, the department of
24natural resources may transfer funds from the appropriation accounts under s.

120.320 (2) (s) and (x) to the Wisconsin drinking water reserve fund under s. 234.933
2to guarantee loans under s. 234.86.
AB100, s. 3573 3Section 3573. 281.65 (1) (d) of the statutes is amended to read:
AB100,1446,74 281.65 (1) (d) Focus limited technical and financial resources in critical
5geographic locations through the selection of priority lakes identified under sub. (4)
6(cd)
and priority watersheds where nonpoint source related water quality problems
7are the most severe and control is most feasible.
AB100, s. 3574 8Section 3574. 281.65 (2) (a) of the statutes is amended to read:
AB100,1446,219 281.65 (2) (a) "Best management practices" means practices, techniques or
10measures, except for dredgings dredging, identified in areawide water quality
11management plans, which are determined to be the most effective means of
12preventing or reducing pollutants generated from nonpoint sources, or from the
13sediments of inland lakes polluted by nonpoint sources, to a level compatible with
14water quality objectives established under this section and which do not have an
15adverse impact on fish and wildlife habitat. The practices, techniques or measures
16include land acquisition, storm sewer rerouting and the removal of structures
17necessary to install structural urban best management practices, facilities for the
18handling and treatment of milkhouse wastewater, repair of fences built using grants
19under this section and measures to prevent or reduce pollutants generated from
20mine tailings disposal sites for which the department has not approved a plan of
21operation under s. 289.30.
AB100, s. 3575 22Section 3575. 281.65 (2) (be) of the statutes is amended to read:
AB100,1446,2423 281.65 (2) (be) "Priority lake" means any lake or group of lakes that are
24identified under sub. (3) (am) or (4) (cm).
AB100, s. 3576 25Section 3576. 281.65 (3) (a) of the statutes is amended to read:
AB100,1447,2
1281.65 (3) (a) Review the lists submitted under sub. (4) (c) and (cd) and reports
2submitted under sub. (4) (c), (cd) and (cg).
AB100, s. 3577 3Section 3577. 281.65 (3) (am) of the statutes is amended to read:
AB100,1447,54 281.65 (3) (am) Designate Identify priority watersheds and priority lakes
5based on reports submitted under sub. (4) (c) and (cd) as provided in sub. (3m).
AB100, s. 3578 6Section 3578. 281.65 (3m) of the statutes is created to read:
AB100,1447,167 281.65 (3m) (a) 1. No later than July 1, 1998, the board shall identify priority
8watersheds based on the list submitted under sub. (4) (c) and recommendations by
9the department and the department of agriculture, trade and consumer protection
10without regard to any priority watershed designations made before the board acts
11under this subdivision, except for priority watershed designations under sub. (4)
12(cm). The department and the department of agriculture, trade and consumer
13protection shall limit the number of watersheds that they recommend to the board
14to the number that they determine will enable the department to comply with sub.
15(4) (g) 9., assuming that the level of funding for the program under this section
16remains the same as on the effective date of this subdivision .... [revisor inserts date].
AB100,1447,2117 2. If a watershed is designated as a priority watershed before the board acts
18under subd. 1. and the board does not identify the watershed as a priority watershed
19under subd. 1., the board shall terminate the watershed's designation as a priority
20watershed. This subdivision does not apply to priority watershed designations made
21under sub. (4) (cm).
AB100,1447,2522 (b) 1. No later than July 1, 1998, the board shall identify priority lakes based
23on the list submitted under sub. (4) (cd) and recommendations by the department
24and the department of agriculture, trade and consumer protection without regard to
25any priority lake designations made before the board acts under this subdivision.
AB100,1448,3
12. If a lake is designated as a priority lake before the board acts under subd.
21. and the board does not identify the lake as a priority lake under subd. 1., the board
3shall terminate the lake's designation as a priority lake.
AB100,1448,74 (c) If the board terminates a priority watershed or priority lake designation
5under this subsection, the board shall review the status of the project in the priority
6watershed or priority lake area and direct the department to continue, modify or
7eliminate funding for the project.
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