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
Governor: Change the PECFA award deductible amount for certain underground petroleum product storage tanks. Currently, the deductible for underground tanks is $2,500 plus 5% of eligible costs, but not more than $7,500, except that the deductible for heating oil tanks owned by public school districts and technical college districts is 25% of eligible costs. Under the bill, the deductible for an underground petroleum product storage tank system for marketers (the system stores products for resale) or nonmarketers that handle an annual average of more than 10,000 gallons of petroleum per month, would change to $10,000, plus another $2,500 if the eligible costs exceed $50,000, plus $2,500 if the eligible costs exceed $80,000, plus $10,000 for each whole $100,000 by which eligible costs exceed $150,000. (For example, for eligible costs of $50,000 the deductible would increase from $5,000 to $10,000, for eligible costs of $100,000 it would increase from $7,500 to $15,000, for eligible costs of $250,000 the deductible would increase from $7,500 to $25,000, and for eligible costs of $1,000,000 it would increase from $7,500 to $95,000.) The deductible for aboveground storage tanks located at terminals would change to $15,000 plus 15% (instead of 5%) of the amount by which eligible costs exceed $200,000. A terminal is a facility that is connected to a petroleum pipeline.
The change would first apply to remedial action activities or emergency actions that begin on the effective date of the biennial budget act. The deductible for noncommercial underground tanks of less than 10,000 gallons would remain at the current $2,500, plus 5% up to a maximum of $7,500. This current maximum would also apply, under the bill, to large tanks and commercial tank owners or operators if Commerce promulgates administrative rules that would exempt a class of owners or operators from the higher deductibles.
[Bill Sections: 1987, 1991 thru 1993 and 9310(4)]
9. PECFA -- INTEREST COST REIMBURSEMENT
Governor: Require that PECFA reimbursement for interest costs incurred by a PECFA claimant would be: (a) eliminated for applicants with gross revenues that exceed $20,000,000 in the most recent tax year before the applicant submits a claim; and (b) limited to 5% for other applicants. The limitations would first apply to interest incurred on November 1, 1999, for claims submitted on November 1, 1999. Commerce would be authorized to promulgate administrative rules that specify information and audit requirements to implement the provision. Currently, reimbursable interest rates are limited to 2% above the prime rate for loans secured after January 31, 1993, and before October 15, 1997, and 1% above the prime rate for loans secured on or after October 15, 1997. Currently, the prime rate is approximately 8.5%. Under the 5% interest limitation, interest incurred on or after November 1, 1999, would be reimbursed at 5% if the claim is submitted on or after November 1, 1999, or at up to 2% or 1% above the prime rate (depending on when the applicant secured the loan) for claims submitted before November 1, 1999.
[Bill Sections: 1980, 1986, 9310(3) and 9410(7)]
10. PECFA -- SITE BID INSURANCE
Governor: Authorize Commerce to promulgate rules that require a person to pay a specified fee as a condition of submitting a bid to provide a service for a cleanup under the PECFA program. Any fees collected under the provision would be deposited in the petroleum inspection fund. If Commerce imposes a fee, the Department would be authorized to use the PECFA awards appropriation to purchase, or provide funding for the purchase of, insurance to cover the amount by which the costs of conducting the cleanup service exceed the amount bid to conduct the cleanup service.
[Bill Sections: 220, 714 and 1981]
11. PECFA -- JOINT AGENCY REPORT
Governor: Require Commerce and DNR to submit a report to the Governor and appropriate standing committees of the Legislature every January 1 and July 1 that relates to petroleum storage tank cleanups that are in progress. The report would be required to provide the following information for each petroleum cleanup that is underway: (a) the date on which the record of the site investigation was received; (b) the environmental risk factors, as defined by Commerce rule, identified at the site; and (c) the year in which DNR or Commerce expects to issue a case closure letter or written approval of the remedial action activities for the site.
[Bill Section: 1995]
12. ENVIRONMENTAL REGULATORY SERVICES INFORMA-TION TECHNOLOGY APPLICATIONS
SEG $581,600
Governor: Provide $290,800 annually from the petroleum inspection fund for the services of computer programmer analysts and development of existing and planned database and automation projects. This includes: (a) $111,600 annually for the Petroleum Inspection Bureau, of which $90,000 annually is one-time funding for accelerated modification and improvement of current petroleum inspection and tank databases, and $21,600 annually is ongoing funding for computer programmer analyst services to maintain and modify the databases; and (b) $179,200 annually for the PECFA Bureau, of which $90,000 is one-time funding for accelerated modification and improvement of the current PECFA database, and $89,200 annually is ongoing funding for computer programmer analyst services, maintenance and development of the database and development of data exchanges with DNR.
13. PETROLEUM LABORATORY EQUIPMENT
SEG $59,600
Governor: Provide $29,800 annually from the petroleum inspection fund to purchase mercury free equipment for 14 petroleum laboratories throughout the state. The funds would be provided under a seven-year master lease, with total lease payments over eight fiscal years of $417,200 (based on a 6.25% interest rate). The $333,800 in total principal amount includes: (a) $93,000 for six automatic reid vapor pressure units, which measure the internal pressure within gasoline, or its tendency to volatize; (b) $210,000 for 14 electronic flash point test units, which test the gas contaminants in oil samples; and (c) $30,800 for 14 gravitometers, which measure the specific gravity of gas and oil.
14. PETROLEUM TANK LOCAL PROGRAM OPERATOR PROGRAM
SEG - $1,500,000
Governor: Decrease by $750,000 annually the amount in unallotted reserve for storage tank local program operator (LPO) payments from the petroleum inspection fund. The LPO program provides funds to local governments and contractors that inspect underground and aboveground storage tanks. LPOs are paid based on the number of tanks in the geographic area of the contract. Current expenditure authority for LPO payments is $3,152,000 annually, of which half ($1,576,000) is budgeted as supplies and services and the other half is in unallotted reserve and transferred when payments exceed $1,576,000. The bill would maintain $2,402,000 annually for LPO payments.
15. HAZARDOUS SUBSTANCE TANK REGULATION
SEG-REV $20,000
Governor: Expand the Department's authority for regulation of tanks that store flammable and combustible liquids to also include tanks that store liquids that are considered hazardous substances under the federal Superfund Act. Specify that these tanks would be subject to the current $100 groundwater fee for plan review and approval if they have a capacity of 1,000 gallons or more. The current groundwater fee applies to plan reviews for tanks that store flammable and combustible liquids and that have a capacity of 1,000 gallons or more. Up to 200 tanks annually could become subject to the groundwater fee, which is deposited in the environmental fund.
[Bill Sections: 1973 thru 1976 and 1979]
16. PETROLEUM TANK INFORMATION DISCLOSURE
Governor: Repeal the requirement that the Department must treat as confidential the name of the owner and the location of any noncommercial storage tank which stores heating oil for consumptive use on the premises.
[Bill Section: 1977]
17. SAFETY AND BUILDINGS STAFF
Funding Positions
PR $954,400 7.50
Governor: Provide $438,700 in 1999-2000 and $515,700 in 2000-01 with 7.5 positions in the Division of Safety and Buildings. The positions would include: (a) 1.5 private sewage system plan reviewers for septage management activities; (b) 1.0 wastewater specialist for private onsite wastewater treatment system maintenance tracking; (c) 2.0 building plan reviewers; (d) 1.5 engineering consultants related to fire prevention and suppression review and inspection; (e) 1.0 engineering consultant for audit of certain programs delegated to local governments; and (f) 0.5 environmental health specialist to inspect "sick buildings." The Division develops administrative rules, reviews plans and performs inspections related to construction such as commercial buildings, dwellings, plumbing, private sewage systems, electrical and heating systems and elevators. Program revenue is provided from several plan review and inspection activities. Administration officials indicate that Commerce would promulgate administrative rule changes to increase several fees to generate additional revenue beginning in 2000-01.
18. PRIVATE ONSITE WASTEWATER TREATMENT SYSTEM TRAINING CENTER
PR $250,000
Governor: Provide $125,000 each year as one-time financing, to establish, in conjunction with the University of Wisconsin-Small Scale Waste Management Project, a private onsite wastewater treatment system (POWTS) training center at the UW Arlington Farm facility. The Department anticipates that POWTS installers and manufacturers would provide an in-kind match of time or equipment valued at up to $250,000 during the 1999-01 biennium. The training center would provide classroom training and demonstrations using real POWTS components and equipment. Training would be available to local government code administrators, plumbers, soil testers, POWTS system designers, homeowners, builders and realtors.
19. PRIVATE SEWAGE SYSTEM REPLACEMENT OR REHABILITATION GRANT PROGRAM
Governor: Make the following changes in the private sewage system replacement or rehabilitation grant program. Base level funding of $3,500,000 GPR annually is available for financial assistance to home and small business owners who meet certain income and eligibility criteria, to cover a portion of the cost of repairing or replacing failing private sewage systems.
a. Change the definition of annual family income to federal adjusted gross income of the owner of the failing private sewage system and the owner's spouse instead of the current use of the Wisconsin adjusted gross income. Under the program, a person who owns a principal residence served by a failing private sewage system is eligible for a grant if the owner's annual family income does not exceed $45,000.
b. Provide grant eligibility if the private sewage system serving the principal residence or the small commercial establishment was installed before July 1, 1978, and the owner meets the other eligibility requirements. This would replace the current requirement that the principal residence was constructed and inhabited before July 1, 1978, and is served by a covered private sewage system (one that discharges sewage into surface water, groundwater or bedrock or to drain tile or the surface of the ground) or the small commercial establishment was constructed before July 1, 1978, and is served by a covered system.
c. Add a $3 million private sewage system replacement or rehabilitation no-interest loan program administered by Commerce and DOA for counties to supplement state payments if funding is prorated. (See the entry under the "Environmental Improvement Fund.")
[Bill Sections: 2220 thru 2223 and 2225 thru 2227]
