Under current law, the LWCB may authorize the transfer of funds appropriated
to DNR for the nonpoint source program to DATCP for grants to certain farmers for
animal waste management facilities. The grants may be made only for facilities that
will be located in priority watersheds. This bill eliminates this requirement.
Under current law, persons who discharge pollutants to the waters of this state
from a point source, such as a factory, must obtain a permit from DNR. This bill
requires DNR to administer at least one pilot project to evaluate the trading of water
pollution credits. A pilot project may authorize a person required to obtain a water
pollution permit to increase the discharge of pollutants above levels that would
otherwise be authorized in the permit if the person reaches an agreement with
another person under which the other person agrees to reduce the amount of
pollution that the person causes or reaches an agreement with DNR or a local
governmental unit under which the person pays money to DNR or the local
governmental unit and DNR or the local governmental unit uses the money to reduce
water pollution.
Under the clean water fund program, this state provides financial assistance
for projects to control water pollution, including sewage treatment plants. The
budget act for each fiscal biennium establishes the present value of the subsidies that
may be provided under the clean water fund during that fiscal biennium. This bill
sets the present value of the clean water fund subsidies that may be provided during
the 1997-99 fiscal biennium at $82,400,000.
Current law provides 3 interest rates for clean water fund loans, 2 subsidized
rates plus the market interest rate, depending on the type of project to be funded by
the loan. Under current law, DNR establishes the subsidized interest rates by rule,
except that the joint committee on finance (JCF) may change the interest rates at the
request of DNR and DOA.
This bill establishes 3 clean water fund loan interest rates for projects that are
eligible for a subsidized interest rate, ranging from 55% to 70% of the market interest
rate, depending on the type of project, except that JCF may change the interest rates
at the request of DNR and DOA.
Current law requires DNR and DOA to prepare a biennial finance plan for the
clean water fund program. This bill eliminates the requirements that the plan
include projections of wastewater treatment needs and financial assistance to be
provided beyond the next fiscal biennium and that the plan describe the extent to
which the clean water fund will be maintained in perpetuity.
Current law requires each person who generates solid or hazardous waste to
pay, in addition to other fees, a well compensation fee of one cent per ton for each ton
of solid or hazardous waste disposed of by that generator. This bill increases the well
compensation fee paid by generators of solid or hazardous waste from one cent per
ton to 4 cents per ton.
Hazardous substances and environmental cleanup
This bill authorizes DNR and DOA to administer a land recycling loan program
under which this state provides loans to cities, villages, towns and counties (political
subdivisions) for projects to remedy environmental contamination at sites owned by
political subdivisions where the environmental contamination has affected, or
threatens to affect, groundwater or surface water. The loans are made from the
revolving loan fund used to fund the clean water fund program. The loans are at 55%
of market interest rate. Under the program, DNR must establish funding lists for
eligible projects with rankings based on the potential of projects to reduce
environmental pollution and threats to human health and, for sites 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. The
bill prohibits a political subdivision from selling a site for which a loan was provided,
while the loan is outstanding, for less than fair market value. If a political
subdivision sells a site, it must use the proceeds to pay any outstanding loan balance,
but may retain a portion of the proceeds after paying the balance.
This bill eliminates a program under which DNR is authorized to use the
proceeds of general obligation bonds to make grants to political subdivisions for
investigations and cleanups of contaminated sites owned by political subdivisions.
Current law generally requires a person who possesses or controls a hazardous
substance that is discharged or who causes the discharge of a hazardous substance
to restore the environment to the extent practicable and to minimize the harmful
effects of the discharge on the environment. Under current law, a local government
that acquires land through tax delinquency or bankruptcy proceedings, or from
another local government that acquired land by such means, is exempt from
requirements relating to correcting discharges of hazardous substances on that land.
Under this bill, this exemption does not apply to a local government that fails
to take certain actions directed by DNR to reduce to acceptable levels any substantial
threat to public health or safety posed by the land when put to its intended use or if
the discharge is a discharge of a hazardous substance from a federally regulated
underground storage tank.
Under current law, a money lender that acquires land through enforcement of
a security interest is not liable for a discharge of a hazardous substance on that land
if, in addition to meeting other requirements, the lender conducts a DNR-approved
environmental assessment of the land within 90 days after acquiring the land. This
bill allows environmental assessments conducted before the lender acquired the land
to be used to satisfy this condition. However, if the prior assessment is conducted
more than one year before the lender acquires the land, the prior assessment may
not be used unless, within 90 days after acquiring the land, the lender visually
inspects the land to verify the accuracy of the environmental assessment, submits
the assessment and inspection results to DNR, corrects the assessment's
inadequacies and reimburses DNR for the cost of its review.
Under current law, DNR has a lien upon land for unrecovered expenses
incurred by DNR to contain, remove or dispose of abandoned containers of hazardous
substances. This bill eliminates DNR's liens upon such land.
Under current law, a landowner who acquired land after a hazardous substance
was discharged on the land is exempt from absolute requirements to restore the
environment and minimize the harmful effects of the discharge, if the purchaser, in
a manner approved by DNR, investigates and restores the environment, minimizes
the harmful effects of the discharge and thereafter maintains and monitors the land.
The exemption continues to apply even if changes to the law would impose greater
responsibilities on the purchaser, or if it is subsequently discovered that the
purchaser's efforts failed to fully restore the environment, failed to minimize the
harmful effects of the discharge or that the contamination was more extensive than
anticipated. The exemption is transferable to subsequent owners who continue to
monitor and maintain the property as approved by DNR.
This bill provides that any person who did not cause the discharge, who did not
control the hazardous substance prior to its discharge and who did not participate
in the management, control or ownership of a business or entity that caused the
initial release of the hazardous substance on the property, is eligible for this
exemption.
With certain limitations, the bill also exempts such a person from the following:
1. Minimum standards for operation, monitoring and maintenance of solid
waste facilities.
2. Certain corrective action orders issued by DNR.
3. Liability for repayment of costs incurred by this state for environmental
repair to the land.
4. Environmental repair fees and surcharges paid by waste generators.
5. Licensing and certification requirements for the treatment, storage and
disposal of hazardous waste on the land.
The bill allows DNR to issue a certificate indicating approval of restoration
efforts that eliminated the harmful effects of a discharge from only part of the
affected land. The certificate exempts a person from liability only with respect to the
portion of the land that was successfully restored. The bill also makes these
exemptions available to a person who owned the land when the hazardous substance
was first released and makes these exemptions available regardless of who
investigates the land, when the investigation is conducted and who restores the land.
The bill provides that a person who owns land contaminated by a hazardous
substance is not required to respond to that hazardous substance if the hazardous
substance migrated from land owned by another and if the person did not cause the
original discharge. The bill also authorizes DNR to issue a written determination
that the person is not required to respond to the hazardous substance if the person
agrees to cooperate with DNR's efforts to respond to the hazardous substance and to
avoid taking actions that worsen the problem.
The bill authorizes DNR to enter into an agreement containing a schedule for
conducting a cleanup of a hazardous substance discharge required by the current law
if the discharge does not endanger public health. If a person violates such an
agreement, DNR may refer the matter to the department of justice for enforcement.
The bill authorizes a person who discovers a discharge of a hazardous substance
on his or her property as a result of conducting an environmental investigation of the
property to delay conducting a cleanup required by current law if all of the following
conditions are satisfied:
1. The person gives a summary of the environmental investigation to DNR.
2. DNR determines that the discharge does not pose an immediate and direct
threat to human health or the environment.
3. The person does not make the discharge worse.
4. Within 3 years (or 6 years under certain circumstances) the person enters
into an agreement with DNR containing a schedule for conducting the cleanup.
The bill provides that a tax-exempt economic development corporation that
owns land on which a hazardous substance has been discharged is not required to
restore the environment or minimize the harmful effects of the discharge if the
corporation acquired the property for economic development purposes and the
corporation did not cause the discharge.
The bill provides that a person who investigates property to determine the
existence of a discharge of a hazardous substance or to get information about a
discharge is not considered to possess or control the hazardous substance or cause
the discharge of the hazardous substance as the result of conducting the
investigation. This provision does not apply, however, if the person who conducts the
investigation physically causes a discharge or exacerbates an existing discharge.
Under current law, a person who provides assistance or advice in handling
problems in emergency or potential emergency situations relating to the discharge
of a hazardous substance or the threat of such a discharge is immune from civil
liability for acts or omissions in providing the assistance or advice. The immunity
does not extend to persons who are paid for their advice and assistance, who cause
and are liable for the hazardous substance discharge, or whose acts or omissions are
grossly negligent or involve reckless, wanton or intentional misconduct.
This bill creates immunity from any civil liability related to a hazardous
substance that was released on land before the person claiming the immunity took
title to, or possession or control of, the land. The immunity is available only to
specified persons who by their actions qualify for other immunities from liability
relating to discharged hazardous substances. The bill does not provide immunity
from a claim arising under a contract.
Under the current stewardship program, DNR may provide grants to local
units of government to acquire land for urban green space, for local parks and for the
preservation or restoration of urban rivers or riverfronts. DNR also may provide
grants to nonprofit conservation organizations to acquire land for trails as well as for
these 3 purposes. This bill requires that DNR give higher priority in awarding these
grants to projects related to brownfields redevelopment. A "brownfield" is an idle or
underused industrial or commercial facility or site that is adversely affected with
respect to expansion or redevelopment by actual or perceived environmental
contamination.
Under current law, the department of commerce administers a program to
reimburse owners of certain petroleum product storage tanks for a portion of the
costs of cleaning up discharges from those tanks. This program is commonly known
as PECFA. This bill requires the department of commerce to give priority in paying
PECFA awards to claims for cleanups at brownfields.
This bill authorizes DNR to provide assistance to any person concerning the
investigation and cleanup of environmental pollution of properties and the
determination of who is liable for that pollution. The bill authorizes DNR to charge
fees to offset the costs of providing this assistance.
Currently, DNR contracts for construction work related to hazardous substance
spills or environmental repair are exempt from most state procurement
requirements. DNR must award the contracts on the basis of competitive bids or
competitive sealed proposals. However, the governor may waive this requirement
in an emergency. This bill allows the governor to waive these bidding requirements
if DNR desires to use innovative or patented technology that is available from only
one source and that in the judgment of DNR would provide the best practicable
hazardous substance spill response or environmental repair.
Under current law, DNR administers a financial assistance program to assist
with costs related to operating recycling programs and for complying with the
prohibition on disposing of yard waste in landfills. The amount of financial
assistance under the program is generally the lesser of 66% of eligible net costs or
$8 per person. In 1998, the percentage rate for reimbursement of recycling program
capital costs and yard waste disposal costs is reduced from 66% to 50%. In 1999, the
rate is further reduced from 50% to 25%, while the reimbursement rate for other
eligible expenses is reduced from 66% to 50%. The program ends on January 1, 2000.
This bill eliminates the scheduled changes to the funding formula and continues the
current formula used to determine financial assistance under the program until
January 1, 2000.
Under current law, the owner of a solid waste disposal facility (landfill) or a
hazardous waste disposal facility is required to maintain proof of financial
responsibility for the costs of closing the facility and of caring for the facility after it
is closed (for example, monitoring groundwater quality). Current law authorizes
several methods for providing proof of financial responsibility, including providing
a bond or a letter of credit. A business or utility may provide proof of financial
responsibility by satisfying specified financial tests, including measures of net worth
and creditworthiness.
This bill establishes a fiscal capacity method for cities, villages, towns and
counties (political subdivisions) to establish proof of financial responsibility related
to the ownership of a landfill or hazardous waste facility. A political subdivision may
provide proof of financial responsibility under this method by satisfying tests related
to the amount of its indebtedness; the property tax levy that would be required to pay
for closure and long-term care; and the political subdivision's bond ratings.
If a political subdivision that uses the fiscal capacity method of providing proof
of financial responsibility fails to comply with closure, long-term care or corrective
action requirements, this bill requires DOA to collect the amounts necessary to pay
for compliance by deducting those amounts from any state payments due to be paid
to the political subdivision.
Under current law, generators of hazardous waste are generally required to pay
an annual environmental repair fee. Certain kinds of waste are exempted from the
fee, including household hazardous wastes that are collected in a program
administered by a municipality to collect household hazardous wastes, often called
a clean sweep program. This bill exempts from the environmental repair fee
agricultural hazardous wastes that are collected in a program administered by a
county to collect agricultural hazardous wastes, often called an agricultural clean
sweep program.
Leaking petroleum storage tanks
Under current law, the department of commerce administers a program to
reimburse owners of certain petroleum product storage tanks for a portion of the
costs of cleaning up discharges from those tanks. This program is commonly known
as PECFA. The department generally determines the amount of a PECFA award by
subtracting a specified deductible from the amount of the eligible costs.
Under this bill, if a claimant includes certain ineligible costs in a PECFA claim,
the department determines the amount of the PECFA award by subtracting the
amount of those ineligible costs, as a penalty, in addition to the deductible, from the
amount of the eligible costs. The bill requires the department to promulgate a rule
identifying the ineligible costs that will be subtracted.
The bill provides that PECFA reimbursement for interest costs incurred by a
PECFA claimant may not exceed the prime rate, as determined by the department
of commerce. Currently, there is no limit on PECFA reimbursement for interest costs.
The bill authorizes the department of commerce to promulgate rules under
which it may require 2 or more owners of petroleum storage tanks to use the same
service providers to conduct cleanups of discharges from those tanks as a condition
of receiving PECFA reimbursement. The bill also authorizes the department of
commerce to promulgate rules under which the department may select service
providers to provide investigation or remedial action services in specified areas. The
rules may deny PECFA reimbursement for a service performed by a person other
than a selected provider or limit PECFA reimbursement to the amount that the
selected provider would have charged for the service.
Under current law, the owner of an underground petroleum product storage
tank that meets state or federal standards for new underground petroleum product
storage tanks or that has been upgraded to meet state or federal standards for
upgrading existing underground petroleum product storage tanks is generally not
eligible for PECFA reimbursement for discharges from that tank. This bill provides
that the owner of an aboveground petroleum product storage tank that meets state
standards for new aboveground petroleum product storage tanks or that has been
upgraded to meet state standards for upgrading existing aboveground petroleum
product storage tanks is generally not eligible for PECFA reimbursement for
discharges from that tank.
Current law specifies situations in which an owner is ineligible for a PECFA
award, including when the owner has been grossly negligent in maintaining the
storage tank. This bill provides that the owner of a petroleum product storage tank
is also ineligible for a PECFA award if the discharge is caused by someone who
provided services or products to the owner.
Under current law, PECFA reimburses the owner of an underground tank for
compensation paid to 3rd parties for property damages caused by a discharge. This
bill provides that PECFA reimbursement for property damages does not cover the
loss of fair market value resulting from a discharge.
Under the bill, if a person who receives a PECFA award sells equipment or
supplies that were eligible costs for which the PECFA award was issued, the person
must pay the proceeds of the sale to this state.
The bill requires the department of commerce to specify the information that
must be submitted by a person who requests a hearing to contest a PECFA
determination, such as the amount of a PECFA award. If a person fails to submit the
required information, the department may deny the person a hearing.
Under current law, the owner of a storage tank is generally ineligible for a
PECFA award for the cleanup of a discharge from the tank if the owner has received
a PECFA award for an earlier discharge from that tank. This bill eliminates that
ineligibility.
Under the bill, if an owner of a storage tank receives a PECFA award but the
cleanup activities for which that award is granted fail to remedy the discharge, the
owner may receive additional financial assistance for other activities to remedy the
discharge. The amount of the original award plus the additional financial assistance
may not exceed the maximum allowable PECFA award.
Under current law, a PECFA claimant must receive a written determination
from the department of commerce or from DNR, depending on the severity of the
contamination, that the cleanup restored the environment to the extent practicable
and minimized the harmful effects from the discharge to the environment. This bill
authorizes DNR to specify methods of showing that the cleanup restored the
environment to the extent practicable and minimized the harmful effects from the
discharge to the environment, other than a written determination by the department
of commerce or DNR.
Current law limits PECFA awards for discharges from home heating oil tanks
to $500,000 per fiscal year. The law limits PECFA awards for school district heating
oil tanks to 5% of the amount appropriated for PECFA awards in each fiscal year.
This bill limits PECFA awards for school district heating oil tanks plus home heating
oil tanks to 5% of the amount appropriated for PECFA awards in each fiscal year.
Other environment
Under current law, DNR issues various kinds of permits and licenses, such as
water pollution discharge elimination permits, air pollution control permits and
landfill operation licenses. Some facilities are required to obtain several of these
licenses and permits.
This bill requires DNR to administer a pilot program to evaluate innovative
environmental regulatory methods. Under the pilot program, DNR may enter into
not more than 10 cooperative agreements with persons who own or operate facilities
that are required to be covered by licenses or permits issued by DNR under current
law. A cooperative agreement may replace a license or permit identified in the
cooperative agreement and provisions in a cooperative agreement may supercede
provisions in a license or permit.
A cooperative agreement must require the participant in the pilot program to
implement an environmental management system under which the participant
evaluates the effects that the covered facility has on the environment and makes
measurable or noticeable improvements in those effects through planning and
changes in the facility's operations. The bill requires a cooperative agreement to
contain pollution limits that are at least as stringent as the pollution limits under
current law and requires participants to involve interested members of the public in
planning and in monitoring performance under a cooperative agreement.
The bill authorizes DNR to grant variances from requirements in current
environmental laws to participants in the program if those variances promote the
reduction in overall levels of pollution or reduce the administrative burden on state
agencies or participants while providing the information needed to ensure
compliance with environmental requirements.
The bill requires participants in the program to conduct systematic reviews of
their environmental performance. If a review reveals violations of environmental
requirements, a participant must report the violations to the department. The
participant must correct the violations within 90 days of the report or within a longer
period specified in a compliance schedule that must be approved by DNR. If a
participant corrects reported violations within the required period, this state may
not collect forfeitures (civil monetary penalties) for the violations unless the
violations present an imminent threat to public health or the environment, the
violations may cause serious harm to public health or the environment or DNR
discovers the violations before they are reported.
This bill requires DNR to establish a permit guarantee program. Under the
program, DNR refunds application fees paid by persons applying for certain licenses
or permits if DNR fails to make a determination on the licenses or permits within a
time period established by DNR. The bill requires DNR to include specified types of
licenses and permits in the program, including air pollution control permits and
permits relating to navigable waters, and authorizes DNR to include other
environmental licenses and permits in the program.
The bill also allows DNR to promulgate a rule to charge an additional fee for
applications for permits for various projects that affect wetlands or that affect
navigable waters, such as the placement of structures or deposits in lakes and rivers.
DNR may charge this fee if an applicant requests that DNR make a determination
whether to grant the permit in a shorter time than the time period established by
DNR by rule and if DNR can comply with the request.
Current law prohibits mining for metallic minerals without a mining permit
issued by DNR. DNR is required to issue a mining permit if it makes certain findings,
including that the proposed mine will comply with all applicable air, water and solid
and hazardous waste laws.
This bill requires that DNR also find: 1) that proven technology exists to ensure
that the proposed mine will not pollute groundwater or surface water from acid
drainage or from the release of heavy metals; and 2) that the proposed mine will use
that technology.
