The Business Development Initiative (BDI) program is designed to help create employment opportunities for persons with severe disabilities by starting or expanding for-profit businesses. The program has five components: (1) direct technical assistance provided by Commerce staff to individuals, small businesses, or nonprofit organizations; (2) technical assistance grants to those entities; (3) technical assistance self-employment grants to disabled individuals; (4) management assistance, working capital and fixed asset financing grants and loans to individuals, small businesses or nonprofit organizations; and (5) the job creation program. The BDI program is funded by both a GPR and program revenue payments appropriation. Base level funding is $150,000 GPR and $60,000 PR.
[Bill Sections: 2974 thru 2978]
21. HAZARDOUS POLLUTION PREVENTION PROGRAM MODIFICATIONS AND BIOTECHNOLOGY POSITION
Positions
GPR 1.00
Governor: Modify provisions related to the hazardous pollution prevention program that is jointly conducted by Commerce, DNR and the UW-Extension Solid and Hazardous Waste Center as follows:
a. Provide 1.0 GPR position and reallocate $75,000 GPR annually for a position to provide services to Wisconsin firms in the emerging science and technology fields. The funding would be reallocated to economic and community development from the appropriation used to fund the hazardous pollution prevention contract with the UW Solid and Hazardous Waste Center. As a result, there would be no funding provided for the contract. The position would be an economic development consultant who would work with start-up businesses on issues, such as developing business and marketing plans and identifying the requirements of private investors and venture capitalists, that would affect the businesses' ability to access financing. The position would also work with WHEDA and a biotechnology corporation established by WHEDA to establish a statewide biotechnology development initiative.
b. Specify that the UW Board of Regents is required to maintain a solid and hazardous waste center in the UW-Extension.
c. Expand the program to promote pollution prevention, rather than hazardous pollution prevention. Pollution prevention would be defined to mean an action that does any of the following: (1) prevents waste from being created; (2) reduces the amount of waste that is created; and (3) changes the nature of waste being created in a way that reduces the hazards to public health or the environment posed by the waste. Pollution prevention would not include incineration, recycling or treatment of a waste, changes in the manner of disposal of a waste, or any practice that changes the characteristics or volume of a waste if the practice is not part of the process that produces a product or provides a service.
d. Statutory definitions of hazardous waste and hazardous waste program that apply to the program would be repealed.
e. The expanded pollution prevention program would be required to promote techniques for pollution prevention by reducing energy use and training employes to minimize waste in addition to current law prevention techniques.
f. The related duties of DNR would be expanded to involve pollution prevention rather than hazardous pollution prevention.
g. The provisions which govern the Department of Commerce's contract with the Solid and Hazardous Waste Center would be modified to reflect the expansion of the program to promote pollution prevention rather than only hazardous waste pollution prevention. For example, provisions related to determining costs, processes and identifying prevention options would apply to solid waste and pollution in addition to hazardous pollution.
Currently, under this program, Commerce, the Department of Natural Resources and the Hazardous Pollution Prevention Council conduct and coordinate an educational, environmental management and technical assistance program to promote hazardous pollution prevention among businesses in the state. In addition, $75,000 GPR annually is currently provided for Commerce to contract with the UW-Extension Solid and Hazardous Waste Center for assessment services.
[Bill Sections: 891, 2670 thru 2680 and 2965 thru 2973]
22. BUSINESS DEVELOPMENT ASSISTANCE CENTER AND ENTREPRENEURIAL ASSISTANCE ANNUAL REPORTS
Governor: Require that beginning on October 1, 2001, and no later than October 1 of each odd-numbered year thereafter, the Department must submit to the Governor and chief clerk of each house of the Legislature as a combined report, the Business Development Assistance Center and entrepreneurial assistance report. The Business Development Assistance Center report would not have to include recommendations concerning consolidated permit applications. The entrepreneurial assistance report would no longer have to include an evaluation of the effectiveness of entrepreneurial and intermediary assistance programs offered by the state.
Currently, the Business Development Assistance center report is due each April 1 and is required to include recommendations for improving the permitting processes of state agencies. The entrepreneurial assistance report is due January 1 of each odd-numbered year and must include a description and evaluation of the state's entrepreneurial and intermediary assistance programs.
[Bill Sections: 2980 thru 2983]
23. DELETE OBSOLETE APPROPRIATIONS
Governor: Delete the SEG appropriations for technology and pollution control and abatement grants and loans that were funded with segregated revenues from the recycling fund and environmental fund. The program was sunset on June 30, 1997.
[Bill Sections: 213, 214 and 2994]
24. INDUSTRIAL REVENUE BONDS -- ESTIMATE OF ATTORNEYS FEES
Governor: Eliminate the requirement that a municipality may not issue industrial revenue bonds unless a document that provides a good faith estimate of attorney fees which will be paid from the bond proceeds is filed with Commerce and the clerk of the municipality prior to adoption of an initial resolution to issue the bonds.
[Bill Section: 1638]
25. ELIMINATE REPORTING REQUIREMENTS
Governor: Eliminate requirements for Commerce to provide the following reports or information:
a. An annual report indicating the net gain in jobs due to state funding provided to Forward Wisconsin. Beginning on or before September 1, 2000, and annually thereafter, Forward Wisconsin would be required to submit the report to the appropriate standing committees of the legislature.
b. A biennial report to the state investment board describing the types of investments in businesses in the state that would have the greatest impact on economic development in the state. The Investment Board, after consulting with Commerce, would continue to prepare this investment plan for the Governor and Legislature.
c. A requirement that the Department, in cooperation with the UW small business development center, UW center for cooperatives, the technical college system board and the UW-extension, collect and disseminate information regarding employe-owned businesses and to promote such businesses.
d. A biennial report on the social, economic and financial effects of tax increment financing projects. Beginning with the 2001-03 biennium DOR would be required to produce this report.
e. A requirement that Commerce must certify that a WHEDA loan conforms with statutory requirements before that loan can be made. Also, the Department would no longer have to produce an annual report addressing the effects of WHEDA loans. WHEDA would be required to prepare this report, beginning on or before July 1, 2000.
f. A publication listing state aid programs and services for communities.
[Bill Sections: 70, 71, 699, 700, 890, 1631, 1799, 2378, 2379, 2929 and 2934 thru 2936]
Building and Environmental Regulation
1. RECYCLING MARKET DEVELOPMENT PROGRAM
Funding Positions
PR-REV $379,200
SEG-REV - $379,200
SEG - $5,332,200 - 2.00
Governor: Delete $2,666,100 SEG and 2.0 SEG positions annually from the recycling fund related to the Recycling Market Development Board (RMDB). The RMDB is responsible for promoting the development of markets for recovered materials and maximizing the marketability of these materials, including providing financial assistance in the form of grants, loans or manufacturing rebates and entering into contracts to carry out the duties of the Board. Currently, the RMDB is repealed effective June 30, 2001 and after that date, Commerce may promulgate rules for awarding financial assistance for the development of markets for materials recovered from solid waste. The changes include the following components.
a. Delete $2,500,000 annually for RMDB financial assistance and repeal the appropriation in order to eliminate use of the recycling fund for this purpose. Beginning on the effective date of the 1999-01 biennial budget act, funding for RMDB financial assistance and contracts would be estimated at $1,500,000 PR annually and would be derived solely from repayments of prior loans made by the Board and repayments of recycling market development loans made by the former Department of Development (DOD) before July 1, 1995.
b. Delete $166,100 and 2.0 positions annually for RMDB administration. The bill would retain $180,300 annually with 2.0 project positions which expire June 30, 2001, including the executive director.
c. Specify that loan repayments from the former DOD recycling market development loan programs (which ended June 30, 1995) be deposited in the RMDB loan repayments appropriation instead of currently being deposited in the recycling fund. Commerce estimates that loan repayments under the former DOD recycling loan programs will total $202,200 in 1999-00 and $177,000 in 2000-01. This would result in an increase in program revenues of $379,200 and a corresponding decrease of segregated recycling fund revenues during the 1999-01 biennium.
d. Until June 30, 2001, authorize the RMDB to use the PR loan repayments appropriation for contracts with persons to carry out the duties of the Board, in addition to using the appropriation for financial assistance. Currently, the RMDB may use only the SEG financial assistance appropriation for contracts.
[Bill Sections: 210, 211, 215, 2565 thru 2567, 3021 and 9410(8)]
2. PECFA -- REVENUE OBLIGATIONS
BR $450,000,000
Governor: Authorize the Building Commission to issue revenue obligations (typically long-term bonds or short-term notes), to be paid from petroleum inspection fees, to fund the payment of claims under the Petroleum Environmental Cleanup Fund Award (PECFA) program. Revenue obligations could not exceed $450 million in principal amount. The Building Commission would also be authorized to issue revenue obligations to fund or refund outstanding revenue obligations, to pay issuance or administrative expenses, to make deposits to reserve funds or to pay accrued or capitalized interest. Commerce would be authorized to enter into agreements with the federal government, local governments, individuals or private entities to insure or provide additional security for the revenue obligations issued under the bill.
The PECFA revenue obligations would be created as a special fund established in the state treasury or in an account maintained by a trustee. Under the bill, the Legislature would find that a nexus exists between the PECFA program and the petroleum inspection fund in that fees imposed on users of petroleum are used to remedy environmental damage caused by petroleum storage. The bill also contains a moral obligation pledge whereby the Legislature would express its expectation and aspiration that, if the Legislature reduces the rate of the petroleum inspection fee and if the funds in the petroleum inspection fund are insufficient to pay the principal and interest on the revenue obligations, the Legislature would make an appropriation from the general fund sufficient to pay the principal and interest on the revenue obligations.
The bill would create a sum sufficient appropriation from the petroleum inspection fund not to exceed the net proceeds of revenue obligations for payment of PECFA awards. In addition, the bill would expand the use of the existing PECFA awards appropriation to include any amount used to reduce the amount of principal of outstanding revenue obligations. Finally, the bill would create three appropriations for use if the obligations are established as a fund in the state treasury, which would include appropriations for: (a) deposit in the special fund in the state treasury of proceeds of revenue obligations to provide for reserves and for expenses of issuance and management of the revenue obligations, with the remainder transferred to the petroleum inspection fund for use for PECFA awards; (b) payment from the petroleum inspection fund of a sum sufficient to retire revenue obligations to repay the fund in the state treasury; and (c) payment from the special fund in the state treasury to retire revenue
obligations, provide for reserves and for expenses of issuance and management of revenue obligations.
[Bill Sections: 217 thru 221, 713, 715, 1994 and 2305]
3. PECFA STAFF
Funding Positions
SEG $327,000 3.00
Governor: Provide $152,200 in 1999-2000 and $174,800 in 2000-01 with 3.0 hydrogeologist positions from the petroleum inspection fund. The staff would provide special services to PECFA site owners, including helping to resolve problems, dealing with major environmental issues, or preventing a site from becoming a major disaster.
4. PECFA -- PETROLEUM INSPECTION FEE
Governor: Authorize Commerce to change the amount of the petroleum inspection fee under certain conditions. Currently, the Department of Revenue collects a petroleum inspection fee of three cents per gallon on petroleum products that are received for sale in this state. Revenues are deposited in the petroleum inspection fund and are used to fund PECFA awards for reimbursement of cleanup costs from petroleum tank discharges, PECFA administration, petroleum inspection administration and other environmental programs.
Under the bill, the petroleum inspection fee would remain at the current three cents per gallon until January 1, 2002. The fee amount could increase, decrease or remain unchanged after January 1, 2002. As of that date and by January 1 of every subsequent even-numbered year, Commerce would be required to determine the amount of submitted but unpaid PECFA claims as of the preceding June 30. If that total exceeds $10 million, Commerce would be required to increase the petroleum inspection fee, effective the following April 1, by the amount per gallon, rounded to the nearest 0.1 cent, that the Department estimates will annually generate revenue equivalent to the amount by which the total of unpaid claims exceeds $10 million. As of January 1, 2002, and by January 1 of every subsequent even-numbered year, Commerce would also be required, to determine the unencumbered balance in the petroleum inspection fund as of the preceding June 30. If that balance exceeds $10 million and if no PECFA revenue obligations are outstanding, Commerce would reduce the petroleum inspection fee, effective the following April 1, by the amount per gallon, rounded to the nearest 0.1 cent, that the Department estimates will reduce the revenue raised annually by the fee in an amount equal to $5 million or the amount by which that balance exceeds $10 million, whichever is greater. Commerce would notify DOR of any change in the fee.
[Bill Sections: 2304 and 2305]
5. PECFA -- SITE PRIORITY CATEGORIZATION
Governor: Effective December 1, 1999, direct Commerce to promulgate a rule to establish the standards for categorizing sites of petroleum product discharges, rather than the current requirement that Commerce and DNR enter into a memorandum of understanding (MOU) that establishes procedures and standards for determining whether a site is high, medium or low priority. Currently, DNR is responsible for administering the cleanup at high-priority petroleum sites and Commerce is responsible for administering the cleanup at medium and low-priority petroleum sites.
Under the bill, Commerce and DNR would be required to attempt to agree on the procedures and standards for determining whether the site of a petroleum discharge is classified as high, medium or low priority. If Commerce and DNR are unable to reach an agreement, the Secretary of DOA would resolve the matter. The Commerce rule would: (a) incorporate any agreements with DNR on site classification and any resolution of disagreements by the Secretary of DOA; (b) not provide that all sites at which a groundwater enforcement standard is exceeded be classified as high priority; and (c) classify no more than 50% of sites as high priority. The groundwater law requires that the concentration of a hazardous substance in groundwater must not exceed the enforcement standard established for the substance. The MOU that Commerce and DNR entered into in May, 1998, categorizes as high priority any site with an exceedence of a groundwater enforcement standard.
Commerce would be required to promulgate emergency rules regarding the standards for categorizing sites by December 31, 1999, and would not be required to provide a finding of emergency before promulgating the rules. Commerce would be required to revise the rules if more than 50% of sites are classified as high priority six months after the rules are in effect.
[Bill Sections: 1988 thru 1990, 1996 thru 1998, 9110(3) and 9410(9)]
6. PECFA -- AWARD PRIORITIZATION AND REMEDIAL ACTION PLANS
Governor: Authorize Commerce to promulgate administrative rules under the PECFA program for assigning award priorities to cleanups, except for cleanups of discharges from home heating oil tanks, small farm tanks and heating oil tanks owned by school districts. In addition, all owners or operators (including those with high priority cleanup administered by DNR) would be required to submit the remedial action plan prepared under current law to Commerce for approval, and Commerce would be required to review and approve or disapprove the remedial action plan. If Commerce promulgates rules for award prioritization, it would be required to: (a) base the award priorities on environmental factors and any other factors that the Department considers appropriate; (b) apply the award priorities only to occurrences for which remedial action plans are approved by Commerce after the effective date of the rules; (c) pay PECFA awards for cleanups that begin after the rules take effect in order of the award priorities; and (d) notify an owner or operator of a petroleum product storage system to which the rules apply of the date on which Commerce determines it is appropriate to begin remedial action activities or emergency actions, based on the Department's estimate of when funds would be available to pay an award under the award priorities. The owner or operator would be authorized to delay beginning a remedial action activity or emergency action until the date on which Commerce determines it is appropriate to begin the activities. Commerce would be authorized to deny PECFA reimbursement for interest costs if an owner or operator begins the activities before the beginning date determined by Commerce.
[Bill Sections: 1982 thru 1985]
7. PECFA -- MAXIMUM AWARD FOR LOW- AND MEDIUM-PRIORITY SITES
Governor: Change the maximum PECFA award for any underground petroleum tank site to $100,000 if the site is classified as medium or low priority under the rule promulgated by Commerce under the bill. The current maximum award for underground tanks is $100,000 for small farm tanks, $500,000 for systems where the product is not stored for resale and handles 10,000 or less gallons per month or $1,000,000 for systems where the product is stored for resale or that handles more than 10,000 gallons per month. The change in the maximum award would apply to claimants whose remedial action plan is approved by Commerce on or after December 1, 1999.
[Bill Sections: 1983 thru 1985, 1988 thru 1990, 9310(5) and 9410(9)]
8. PECFA -- DEDUCTIBLE AMOUNT
