SB77,1431,12 8(3) Notice of intent to apply. (a) A political subdivision shall submit notice
9of its intent to apply for financial assistance under the land recycling loan program.
10A political subdivision shall submit the notice at least 6 months before the beginning
11of the fiscal biennium in which it will request to receive funding. The notice shall
12be in a form prescribed by the department and the department of administration.
SB77,1431,1413 (b) The department may waive par. (a) upon the written request of a political
14subdivision.
SB77,1431,22 15(5) Application. After submitting a notice of intent to apply under sub. (3) (a)
16or obtaining a waiver under sub. (3) (b), a political subdivision shall submit an
17application for land recycling loan program financial assistance to the department.
18The applicant shall submit the application before the April 30 preceding the
19beginning of the fiscal year in which the applicant is requesting to receive the
20financial assistance. The application shall be in the form and include the
21information required by the department and the department of administration. An
22applicant may not submit more than one application per project per year.
SB77,1432,6 23(6) Priority list. The department shall establish a priority list that ranks each
24land recycling loan program project. The department shall promulgate rules for
25determining project rankings based on the potential of projects to reduce

1environmental pollution and threats to human health and, for sites and facilities
2that are not landfills, the extent to which projects will prevent the development of
3undeveloped land by making land available for redevelopment after a cleanup is
4conducted. Before the department establishes the priority list, the department shall
5consider the recommendations of the department of administration and the
6department of commerce.
SB77,1432,8 7(7) Approval of application. The department shall approve an application
8received under sub. (5) after all of the following occur:
SB77,1432,99 (a) The project is ranked on the priority list under sub. (6).
SB77,1432,1110 (b) The department determines that the project meets the eligibility
11requirements under this section.
SB77,1432,1312 (c) The department of administration determines that the political subdivision
13will meet the requirements of s. 281.59 (9) (b).
SB77,1432,1514 (d) The legislature has approved an amount under s. 281.59 (3m) (b) for the
15biennium.
SB77,1432,23 16(8) Funding list; allocation of funding. (a) The department shall establish
17a funding list for each fiscal year that ranks projects of political subdivisions that
18submit approvable applications under sub. (5) before the April 30 preceding the
19beginning of the fiscal year in the same order that they appear on the priority list
20under sub. (6). If sufficient funds are not available to fund all approved applications
21for financial assistance, the department of administration shall allocate funding to
22projects that are approved under sub. (7) in the order that they appear on the funding
23list, except as follows:
SB77,1432,2524 1. The department of administration may not allocate more than 40% of the
25available funds in each fiscal year to projects to remedy contamination at landfills.
SB77,1433,2
12. In any biennium, no political subdivision may receive more than 25% of the
2amount established under s. 281.59 (3m) (b) for that biennium.
SB77,1433,53 (b) In allocating subsidy under this subsection, the department of
4administration shall adhere to the amount approved by the legislature for each
5biennium under s. 281.58 (3m) (b).
SB77,1433,8 6(8m) Conditions of financial assistance. As a condition of receiving financial
7assistance under the land recycling loan program, a political subdivision shall do all
8of the following:
SB77,1433,109 (a) Establish a dedicated source of revenue for the repayment of the financial
10assistance.
SB77,1433,1311(b) Comply with those provisions of 33 USC 1381 to 1387, this chapter, and the
12rules and regulations promulgated under those provisions, that the department
13specifies.
SB77,1433,1514 (c) Allow access to the project by representatives of the department for the
15purpose of making inspections.
SB77,1433,23 16(9) Financial assistance commitments. The department and the department
17of administration may, at the request of a political subdivision, issue a notice of
18financial assistance commitment after the political subdivision's application for land
19recycling loan program financial assistance has been approved and funding has been
20allocated under sub. (8) for the political subdivision's project. The notice of financial
21assistance commitment shall specify the conditions that the political subdivision
22must meet to secure financial assistance and shall include the estimated repayment
23schedules and other terms of financial assistance.
SB77,1434,2 24(10) Deadline for closing. If funding is allocated to a project under sub. (8)
25for a loan and the loan is not closed before April 30 of the year following the year in

1which funding is allocated, the department of administration shall release the
2funding allocated to the project.
SB77,1434,4 3(11) Loan interest rates. The interest rate on a land recycling loan program
4loan shall be 55% of market interest rate.
SB77,1434,14 5(11m) Service fee. The department and the department of administration
6shall jointly charge and collect an annual service fee for reviewing and acting upon
7land recycling loan program applications and servicing financial assistance
8agreements. The fee shall be in addition to interest payments at the rate under sub.
9(11). For the 1997-99 fiscal biennium, the service fee shall be 0.5% of the loan
10balance. Fee amounts for later biennia shall be established in the biennial finance
11plan under s. 281.59 (3) (a) 8. The department and the department of administration
12shall specify in the biennial finance plan a fee designed to cover the costs of reviewing
13and acting upon land recycling loan program applications and servicing financial
14assistance agreements.
SB77,1434,18 15(12) Sale of site or facility. (a) A political subdivision may not sell a site or
16facility, or portion of a site or facility, for which the political subdivision has received
17a loan under this section, while the loan is outstanding, for less than fair market
18value.
SB77,1434,2119 (b) If a political subdivision sells a site or facility, or portion of a site or facility,
20for which the political subdivision has received a loan under this section, the political
21subdivision shall do the following:
SB77,1434,2422 1. If the sale proceeds are less than or equal to the remaining loan balance, pay
23the sale proceeds to the department of administration to repay all or a portion of the
24loan.
SB77,1435,4
12. If the sale proceeds are greater than the remaining loan balance but less than
2or equal to the cost of the land plus the cost of the cleanup, pay an amount equal to
3the remaining loan balance to the department of administration and retain the
4remainder of the sale proceeds.
SB77,1435,95 3. If the sale proceeds are greater than the cost of the land plus the cost of the
6cleanup, pay to the department of administration an amount equal to the remaining
7loan balance plus the lesser of 75% of the amount by which the sale proceeds exceed
8the cost of the land plus the cost of the cleanup or the amount of subsidy incurred for
9the project and retain the remainder of the sale proceeds.
SB77,1435,10 10(13) Duties of the department. The department shall do all of the following:
SB77,1435,1211 (a) Seek approval of the federal environmental protection agency for the use
12of funds under 33 USC 1381 to 1387 for the land recycling loan program.
SB77,1435,1413 (b) Promulgate rules establishing eligibility criteria for applicants and projects
14under this section.
SB77,1435,1615 (c) Promulgate rules that are necessary for the execution of its responsibilities
16under the land recycling loan program.
SB77,1435,1817 (d) Cooperate with the department of administration in administering the land
18recycling loan program.
SB77,1435,2019 (e) Submit a biennial budget request under s. 16.42 for the land recycling loan
20program.
SB77,1435,2221 (f) Have the lead role with the federal environmental protection agency
22concerning the land recycling loan program.
SB77,1435,2523 (g) Have the lead role with political subdivisions in providing land recycling
24loan program information, and cooperate with the department of administration in
25providing that information to political subdivisions.
SB77,1436,2
1(h) Periodically inspect land recycling loan program projects to determine
2project compliance with the requirements of this section.
SB77,1436,53 (i) By May 1 of each even-numbered year, prepare and submit to the
4department of administration a biennial needs list that includes all of the following
5information:
SB77,1436,86 1. A list of land recycling loan program projects that the department estimates
7will apply for financial assistance under the land recycling loan program during the
8next biennium.
SB77,1436,119 2. The estimated cost and estimated construction schedule of each project on
10the list under subd. 1., and the total of the estimated costs of all projects on the list
11under subd. 1.
SB77,1436,1212 3. The estimated rank of each project on the priority list under sub. (6).
SB77, s. 3570 13Section 3570. 281.61 of the statutes is created to read:
SB77,1436,14 14281.61 Safe drinking water loan program. (1) Definitions. In this section:
SB77,1436,1715 (a) "Local governmental unit" means a city, village, town, county, town sanitary
16district, public inland lake protection and rehabilitation district or municipal water
17district.
SB77,1436,2018 (b) "Market interest rate" means the interest at the effective rate of a revenue
19obligation issued by this state to fund a loan or portion of a loan for a clean water fund
20program project under s. 281.58.
SB77,1436,2421 (c) "Public water system" means a water system providing piped water to the
22public for human consumption if the water system has at least 15 service connections
23or regularly serves an average of at least 25 individuals daily for at least 60 days each
24year.
SB77,1437,2
1(d) "Safe drinking water loan program" means the program administered
2under this section, with financial management provided under s. 281.59.
SB77,1437,8 3(2) General. The department and the department of administration shall
4administer a program to provide financial assistance to local governmental units for
5projects for the planning, designing, construction or modification of public water
6systems, if the projects will facilitate compliance with national primary drinking
7water regulations under 42 USC 300g-1 or otherwise significantly further the health
8protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26.
SB77,1437,15 9(2g) Ineligible projects. A local governmental unit is not eligible for financial
10assistance under this section if the local governmental unit does not have the
11technical, managerial or financial capacity to ensure compliance with the Safe
12Drinking Water Act, 42 USC 300f to 300j-26, or the public water system operated by
13the local governmental unit is in significant noncompliance with any requirement
14of a primary drinking water regulation or variance under 42 USC 300g-1 unless the
15financial assistance will ensure compliance with the Safe Drinking Water Act.
SB77,1437,18 16(2r) Methods of providing financial assistance. The following methods of
17providing financial assistance may be used under the safe drinking water loan
18program:
SB77,1437,2019 (a) Making loans below the market interest rate for projects described in sub.
20(2).
SB77,1437,2321 (b) Purchasing or refinancing the obligation of a local governmental unit if the
22obligation was incurred to finance the cost of a project described in sub. (2) and the
23obligation was initially incurred after July 1, 1993.
SB77,1438,3
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.
SB77,1438,74 (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.
SB77,1438,12 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.
SB77,1438,1513 (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).
SB77,1438,1716 (c) The department may waive par. (a) or (b) upon the written request of a local
17governmental unit.
SB77,1438,20 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.
SB77,1439,4 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.
SB77,1439,11 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.
SB77,1439,13 12(7) Approval of application. The department shall approve an application
13received under sub. (5) after all of the following occur:
SB77,1439,1414 (a) The project is ranked on the priority list under sub. (6).
SB77,1439,1615 (b) The department determines that the project meets the eligibility
16requirements under this section.
SB77,1439,1817 (c) The department of administration determines that the local governmental
18unit will meet the requirements of s. 281.59 (9) (b).
SB77,1439,2019 (d) The legislature has approved an amount under s. 281.59 (3s) (b) 1. for the
20biennium.
SB77,1440,2 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:
SB77,1440,63 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.
SB77,1440,87 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.
SB77,1440,119 (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).
SB77,1440,14 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:
SB77,1440,1615 (a) Establish a dedicated source of revenue for the repayment of the financial
16assistance.
SB77,1440,1917(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.
SB77,1440,2120 (c) Develop and adopt a program of water conservation as required by the
21department.
SB77,1440,2422 (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.
SB77,1440,2525 (e) Develop and adopt a user fee system.
SB77,1441,8
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.
SB77,1441,12 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.
SB77,1441,14 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:
SB77,1441,1615 1. For a local governmental unit that does not meet financial eligibility criteria
16established by the department by rule, 55% of market interest rate.
SB77,1441,1817 2. For a local governmental unit that meets financial eligibility criteria
18established by the department by rule, 33% of market interest rate.
SB77,1441,2119 (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.
SB77,1441,22 22(12) Duties of the department. The department shall do all of the following:
SB77,1441,2423 (a) Promulgate rules establishing eligibility criteria for applicants and projects
24under this section.
SB77,1442,2
1(b) Promulgate rules that are necessary for the execution of its responsibilities
2under the safe drinking water loan program.
SB77,1442,43 (c) Cooperate with the department of administration in administering the safe
4drinking water loan program.
SB77,1442,75 (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:
SB77,1442,108 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.
SB77,1442,1211 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.
SB77,1442,1313 3. The estimated rank of each project on the priority list under sub. (6).
SB77,1442,1514 (e) Submit a biennial budget request under s. 16.42 for the safe drinking water
15loan program.
SB77,1442,1716 (f) Have the lead state role with the federal environmental protection agency
17concerning the safe drinking water loan program.
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