Wisconsin Legislature: 9,2512j

281.59 (13s) Powers. The department of administration may audit, or contract for audits of, projects receiving financial assistance under the clean water fund program, the safe drinking water loan program, the urban storm water loan program and the land recycling loan program.

9,2512g Section 2512g. 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 ss. 281.58, 281.595, 281.60 and 281.61.

9,2512j Section 2512j. 281.595 of the statutes is created to read:

281.595 Urban storm water loan program. (1) Definitions. In this section:

(a) "Local governmental unit" means a city, village, town, county, town sanitary district, public inland lake protection and rehabilitation district or metropolitan sewerage district.

(b) "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.

(c) "Population" means population shown by the last federal census or by any subsequent population estimate under s. 16.96.

(d) "Urban area" means any of the following:

1. An area with a population of 1,000 or more per square mile.

2. An area in which the land is used for industrial or commercial land uses.

3. An area that is surrounded by an area described in subd. 1. or 2.

(e) "Urban storm water loan program" means the program administered under this section, with financial management provided under s. 281.59.

(2) General. The department and the department of administration shall administer a program to provide financial assistance to local governmental units for the planning, designing, construction or modification of nonpoint source pollution and urban storm water runoff projects in urban areas.

(2g) Ineligible uses. A local governmental unit may not use financial assistance under this section to pay any portion of the cost of a project for which financial assistance is provided under s. 281.65.

(2r) Methods of providing financial assistance. The following methods of providing financial assistance may be used under the urban storm water loan program:

(a) Making loans below the market interest rate for projects described in sub. (2).

(b) Purchasing or refinancing the obligation of a local governmental unit that was incurred to finance the cost of a project described in sub. (2).

(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 local governmental units under subch. II of ch. 24 by the board of commissioners of public lands for projects that are eligible for financial assistance under the urban storm water loan program.

(3) Notice of intent to apply. (a) A local governmental unit shall submit notice of its intent to apply for financial assistance under the urban storm water loan program at least 6 months before the beginning of the fiscal year in which it intends to receive the financial assistance. The notice shall be in a form prescribed by the department and the department of administration.

(b) If a local governmental unit does not apply for financial assistance by April 30 of the 2nd year following the year in which it submitted notice under par. (a), the local governmental unit shall submit a new notice under par. (a).

(4) Engineering report. A local governmental unit seeking financial assistance for a project under this section shall submit an engineering report, as required by the department by rule.

(5) Application. After the department approves a local governmental unit's engineering report submitted under sub. (4), the local governmental unit shall submit an application for urban storm water financial assistance to the department. The applicant shall submit the application before the April 30 preceding the beginning of the fiscal year in which the applicant wishes 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 and shall include plans and specifications that are approvable by the department under this section. An 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 urban storm water loan program project. The department shall promulgate rules for determining project rankings that base project priority on the impact of a project on groundwater and surface water quality and on public health.

(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 local governmental unit will meet the requirements of s. 281.59 (9) (b).

(d) The legislature has approved an amount under s. 281.59 (3v) (b) 1. 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 local governmental units that submit approvable applications under sub. (5) 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.

(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. 281.59 (3v) (b).

(8m) Conditions of financial assistance. As a condition of receiving financial assistance under the urban storm water loan program, a local governmental unit 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 and this chapter and ch. 283 and the regulations and rules promulgated under those provisions that the department specifies.

(c) Develop and adopt a program for the operation and maintenance of the nonpoint source pollution or storm water project, including the training of personnel, as required by the department.

(8s) Ineligibility for and limitation on financial assistance. (a) A person or municipality that has failed to substantially comply, as specified by the rules promulgated under sub. (12), with the terms of a federal or state grant or loan used to pay the cost of studies, investigations, plans, designs or construction associated with implementing a nonpoint source control management program is not eligible for financial assistance from the urban storm water loan program.

(b) The amount of a payment under sub. (2r) (d) may not exceed the amount of subsidy necessary to reduce the interest rate on the loan from market rate to the interest rate that would have been charged on a loan to the local governmental unit under sub. (2r) (a).

(9) Financial assistance commitments. The department and the department of administration may, at the request of a local governmental unit, issue a notice of financial assistance commitment after the local governmental unit's application for urban storm water financial assistance has been approved under sub. (7) and funding has been allocated under sub. (8) for the local governmental unit's project. The notice of financial assistance commitment shall specify the conditions that the local governmental unit must meet to secure financial assistance and shall include the estimated repayment schedules and other terms of the 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. (a) Except as provided under par. (b), the interest rate on an urban storm water loan program loan shall be 55% of market interest rate.

(b) The department and the department of administration jointly may request the joint committee on finance to take action under s. 13.101 (11) to modify the percentage of market interest under par. (a).

(11m) Service fee. The department and the department of administration may jointly charge and collect an annual service fee for reviewing and acting upon urban storm water loan program applications and servicing financial assistance agreements. The fee shall be in addition to interest payments at the rate under sub. (11). The department and the department of administration shall specify any fee in the biennial finance plan and shall design the fee to cover the costs of reviewing and acting upon urban storm water loan program applications and servicing financial assistance agreements.

(12) Duties of the department. The department shall do all of the following:

(a) Promulgate rules establishing eligibility criteria for applicants and projects under this section.

(b) Promulgate rules that are necessary for the execution of its responsibilities under the urban storm water loan program.

(d) By May 1 of each even-numbered year, prepare and submit to the department of administration a biennial needs list that includes all of the following information:

1. A list of urban storm water projects that the department estimates will apply for financial assistance under the urban storm water loan program during the next biennium.

2. The estimated cost and estimated construction schedule of each project on the list, and the total of the estimated costs of all projects on the list.

3. The estimated rank of each project on the priority list under sub. (6).

(e) Submit a biennial budget request under s. 16.42 for the urban storm water loan program.

(f) Have the lead state role with the federal environmental protection agency concerning the urban storm water loan program.

(g) Have the lead state role with local governmental units in providing urban storm water loan program information, and cooperate with the department of administration in providing that information to local governmental units.

(h) Inspect periodically urban storm water loan program project construction to determine project compliance with construction plans and specifications approved by the department and the requirements of the urban storm water loan program.

9,2513 Section 2513. 281.60 (1) (a) of the statutes is amended to read:

281.60 (1) (a) "Eligible applicant" means a political subdivision, a redevelopment authority created under s. 66.431 or a housing authority.

9,2514 Section 2514. 281.60 (1) (c) of the statutes is repealed.

9,2515 Section 2515. 281.60 (2) of the statutes is amended to read:

281.60 (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 or, if the applicant is a political subdivision, if a redevelopment authority or a housing authority 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.

9,2516 Section 2516. 281.60 (2r) (a) of the statutes is amended to read:

281.60 (2r) (a) Making loans below the market interest rate for projects described in sub. (2).

9,2517 Section 2517. 281.60 (7) (c) of the statutes is amended to read:

281.60 (7) (c) The department of administration determines that the eligible applicant will meet the requirements of s. 281.59 (9) (b).

9,2518 Section 2518. 281.60 (8s) of the statutes is created to read:

281.60 (8s) Limitation on financial assistance. The amount of a payment under sub. (2r) (d) may not exceed the amount of subsidy necessary to reduce the interest rate on the loan from market rate to the interest rate that would have been charged on a loan to the political subdivision under sub. (2r) (a).

9,2519 Section 2519. 281.60 (11) of the statutes is amended to read:

281.60 (11) Loan interest rates. The department and the department of administration may not charge interest rate on a land recycling loan program loan shall be 55% of market interest rate.

9,2520 Section 2520. 281.60 (11m) of the statutes is amended to read:

281.60 (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.

9,2521 Section 2521. 281.61 (8s) of the statutes is created to read:

281.61 (8s) Limitation on financial assistance. The amount of a payment under sub. (2r) (d) may not exceed the amount of subsidy necessary to reduce the interest rate on the loan from market rate to the interest rate that would have been charged on a loan to the local governmental unit under sub. (2r) (a).

9,2521e Section 2521e. 281.65 (1) (d) of the statutes is amended to read:

281.65 (1) (d) Focus limited technical and financial resources in critical geographic locations through the selection of priority lakes and priority watersheds where nonpoint source related water quality problems and threats are the most severe and control is most feasible.

9,2521f Section 2521f. 281.65 (4) (f) of the statutes is amended to read:

281.65 (4) (f) Administer the distribution of grants and aids to governmental units for local administration and implementation of the program under this section. A grant awarded under this section may be used for technical assistance, educational and training assistance, ordinance development and administration, cost-sharing for management practices and capital improvements, plan preparation under par. (g), easements or other activities determined by the department to satisfy the requirements of this section. A grant may not be used for promotional items, except for promotional items that are used for informational purposes, such as brochures or videos.

9,2521g Section 2521g. 281.65 (4) (g) (intro.) of the statutes is amended to read:

281.65 (4) (g) (intro.) In cooperation with the department of agriculture, trade and consumer protection and the appropriate governmental unit, prepare priority watershed and priority lakes plans to implement nonpoint source water pollution abatement projects and storm water control activities described in sub. (8c) in priority watersheds and priority lake areas. In preparing the plans, the department shall:

9,2521i Section 2521i. 281.65 (4) (j) of the statutes is repealed.

9,2521k Section 2521k. 281.65 (4) (pm) of the statutes is amended to read:

281.65 (4) (pm) Jointly with the department of agriculture, trade and consumer protection, develop the forms required and implement the process under s. 92.14 (14).

9,2521m Section 2521m. 281.65 (4) (t) of the statutes is repealed.

9,2521n Section 2521n. 281.65 (4c) (a) of the statutes is amended to read:

281.65 (4c) (a) Beginning on July 1, 1998, a A governmental unit may request funding under this subsection for a project that is in a priority watershed project, a or priority lake project area or a nonpoint source water pollution abatement project that is not in a priority watershed or a priority lake area by submitting an application to the board department. An application shall be submitted before July 15 to be considered for initial funding in the following year.

9,2521ne Section 2521ne. 281.65 (4c) (ae) of the statutes is created to read:

281.65 (4c) (ae) The department shall administer this subsection in a manner that promotes the accelerated implementation of nonpoint source water pollution control that cannot be conducted with funding under s. 92.14 in target areas described in par. (am) 1. that are of the highest priority.

9,2521nm Section 2521nm. 281.65 (4c) (am) of the statutes is created to read:

281.65 (4c) (am) The department may select a project for funding under this subsection only if all of the following apply: