Currently, PECFA reimburses applicants for interest costs incurred in
financing a cleanup, but that reimbursement is limited to interest at 1% over the
prime rate. Under this bill, PECFA does not reimburse interest costs incurred by an
applicant in financing a cleanup if the applicant has annual gross revenues in excess
of $20,000,000. For other applicants, the PECFA interest reimbursement is limited
to interest at 5%. The limits on interest reimbursements apply to interest incurred
after October 31, 1999, on claims filed after October 31, 1999.
Under current law, DNR generally may order a responsible person to conduct
a cleanup of a hazardous substance that has been discharged into the environment
and may oversee the cleanup. However, under current law, the department of
commerce may order and oversee cleanups of certain discharges from petroleum
product storage tanks. The department of commerce has authority over cleanups if
the site of the discharge is classified as low or medium priority based on the threat
that the discharge poses to public health, safety and welfare and to the environment
and if the site is not contaminated by nonpetroleum hazardous substances. Current
law requires DNR and the department of commerce to enter into a memorandum of
understanding that establishes procedures and standards for determining whether
a site is high, medium or low priority. Under this state's groundwater law, DNR and
the department of health and family services set enforcement standards. An
enforcement standard represents a concentration of a substance in groundwater.
This bill requires the department of commerce to establish the standards for
categorizing sites of petroleum product discharges by rule, rather than by
memorandum of understanding. The bill requires the department of commerce and
DNR to attempt to agree on the standards. The bill prohibits the departments from
providing, in those standards, that all sites at which a groundwater enforcement
standard has been exceeded are high priority. The bill also requires the departments
to design the standards to classify no more than 50% of sites as high priority. If the
departments cannot agree on the standards, the secretary of administration must
resolve the disagreement.
Under PECFA, the owner of a petroleum product storage tank may receive an
award for the amount by which the cost of the cleanup exceeds a deductible amount,
up to a specified maximum. The current maximum for underground tanks varies
from $100,000 for small farm tanks to $1,000,000 for tanks located at a facility at
which petroleum is stored for resale and tanks that handle an average of more than
10,000 gallons of petroleum per month.
This bill changes the maximum PECFA award for any underground petroleum
product storage tank to $100,000 if the site of the discharge from the tank is classified
as medium priority or low priority under the classification system promulgated by
rule by the department of commerce. The change in the maximum PECFA award
applies to PECFA claims for which remedial action plans are approved after
November 30, 1999.
Currently, the PECFA deductible for underground tanks is generally $2,500
plus 5% of eligible costs, but not more than $7,500, except that the deductible for
heating oil tanks owned by school districts and technical college districts is 25% of
eligible costs.
This bill changes the PECFA deductible amount for certain underground
petroleum product storage tanks. Under this bill, the deductible for an underground
petroleum product storage tank that is located at a facility at which petroleum is
stored for resale or an underground petroleum product storage tank that handles an
annual average of more than 10,000 gallons of petroleum per month is $10,000, plus
$2,500 if the eligible costs exceed $50,000, plus $2,500 more if eligible costs exceed
$80,000, plus $10,000 more for each whole $100,000 by which eligible costs exceed
$150,000, except that the department of commerce may, by rule, exempt a class of
owners and operators from this higher deductible.
The bill also changes the PECFA deductible amount for aboveground storage
tanks located at terminals from $15,000 plus 5% of the amount by which eligible costs
exceed $200,000 to $15,000 plus 15% of the amount by which eligible costs exceed
$200,000. A terminal is a facility that is connected to a petroleum pipeline.
This bill authorizes the department of commerce to promulgate rules for
assigning award priorities to cleanups under PECFA, except for cleanups of
discharges from home heating oil tanks, small farm tanks and heating oil tanks
owned by school districts. If the department promulgates the rules, it must pay
PECFA awards, for cleanups that begin after the rules take effect, in order of the
award priorities under the rules. The bill requires the department to inform the
owner or operator of a petroleum product storage tank of the date on which it is
appropriate to begin a cleanup, based on when the department estimates funding
will be available for an award for the cleanup. The bill authorizes an owner or
operator to delay beginning a cleanup until the date that the department determines
it is appropriate to begin the cleanup. The bill also authorizes the department to
deny PECFA reimbursement for interest costs if an owner or operator begins a
cleanup before the appropriate beginning date as determined by the department.
This bill authorizes the department of commerce to require a person to pay a
fee as a condition of submitting a bid to provide a service for a cleanup under PECFA.
If the department of commerce imposes a fee, the department may purchase, or
provide funding for the purchase of, insurance to cover the amount by which the costs
of conducting a cleanup exceed the amount bid to conduct the cleanup.
This bill requires the department of commerce and DNR to report information
every six months about petroleum product cleanups that are in progress.
Dry cleaner environmental response program
Under current law, DNR administers the dry cleaner environmental response
program, under which owners and operators of dry cleaning facilities are reimbursed
a portion of the costs incurred in cleaning up a discharge of dry cleaning solvent. This
program is funded, in part, by dry cleaning license, solvent and inventory fees that
are paid by owners and operators of dry cleaning facilities. As a condition of receiving
reimbursement, owners and operators of closed dry cleaning facilities must pay
annually for 30 years the average yearly dry cleaning license fee and an amount
equal to the total amount collected as annual dry cleaning solvent fees divided by the
number of operating dry cleaning facilities for that year. These required fees are in
addition to the deductible owners and operators must pay before receiving a
reimbursement.
This bill eliminates the requirement that operators of closed dry cleaning
facilities pay annual fees for 30 years. Instead, the bill requires owners of dry
cleaning facilities to pay as part of the deductible an amount equal to 30 times the
average license fee for the year in which the reimbursement is made and an amount
equal to 30 times the total collected as solvent fees divided by the number of
operating dry cleaning facilities for the year. This bill also increases the deductible
for closed facilities when eligible costs exceed $200,000.
Currently, financing costs are reimbursable costs under the dry cleaner
environmental response program. This bill excludes financing costs from
reimbursable costs under the program.
Under current law, the first priority for reimbursement under the dry cleaner
environmental response program is reimbursement for immediate action activities
(activities taken within a short time after a discharge occurs or after a discharge is
discovered). After reimbursements for immediate action activities, DNR is required
to give highest priority to paying reimbursements for eligible costs incurred before
October 14, 1997.
This bill requires DNR each year, after paying reimbursements for immediate
action activities, to make a specified portion of the funds available to pay
reimbursements for eligible costs incurred before October 14, 1997, and to use the
rest of the funds to pay reimbursements for costs incurred on or after October 14,
1997.
This bill requires applicants under the dry cleaner environmental response
program to notify DNR of insurance claims made for the costs of cleanup of a dry
cleaner solvent spill and to disclose the amount of insurance proceeds received. The
bill also requires applicants to notify DNR if they intend to file suit against an
insurance company to recover clean-up costs and allows DNR to join a private suit
filed by an applicant against an insurance company for the purpose of recovering
clean-up costs.
Under the dry cleaner environmental response program, the owners of certain
dry cleaning facilities are eligible for reimbursement for the costs of preliminary site
screening and interim remedial equipment to begin the cleanup of dry cleaning
discharges before the completion of full site investigations and cleanup plans. The
reimbursement for preliminary site screening and interim equipment may not
exceed $15,000, of which not more than $2,500 may be for the preliminary site
screening.
Under this bill, the reimbursement for preliminary site screening and interim
remedial equipment is 50% of the eligible costs, but not more than $20,000, of which
not more than $3,000 may be for the cost of the preliminary site screening.
The dry cleaner environmental response program is currently funded from the
dry cleaner environmental response fund, a segregated fund. Under current law,
DNR is authorized under certain circumstances to fund cleanups of hazardous
substance discharges from the environmental fund, another segregated fund.
Under this bill, if DNR funds a cleanup of a discharge of dry cleaning solvent
from the environmental fund, DNR must transfer from the dry cleaner
environmental response fund to the environmental fund an amount equal to the
amount expended from the environmental fund for the cleanup. DNR must make the
transfer when it determines that sufficient funds are available.
Other hazardous substances and environmental cleanup
This bill authorizes a local governmental unit to recover costs it incurs in
cleaning up a property on which a hazardous substance has been discharged if the
local governmental unit acquired the property in one of several specified ways,
including through tax delinquency proceedings or condemnation. The local
governmental unit may recover the costs from a person who possessed or controlled
the hazardous substance at the time that the local governmental unit acquired the
property or who caused the discharge of the hazardous substance, unless the person
is exempt from the requirement to clean up the property under the hazardous
substances spills law.
This bill creates a brownfields site assessment grant program to be
administered by DNR. Under the program, cities, villages, towns, counties,
redevelopment authorities, community development authorities and housing
authorities may apply for a grant to conduct preliminary clean-up activities at
brownfield sites. The grants specifically cover the costs of investigating
environmental contamination, demolishing structures and removing abandoned
containers and asbestos. Applicants who receive a grant under the program must
contribute matching funds equal to 20% of the grant and are required to pay back the
grant if they receive a loan under the land recycling loan program to conduct the
same clean-up activities.
Currently, under the land recycling loan program, 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 provided at subsidized interest rates.
This bill provides that recipients of loans under the land recycling loan program
are not required to pay any interest. The bill also makes redevelopment authorities
and housing authorities eligible for loans under the program.
The budget act for each fiscal biennium establishes the present value of the
subsidies that may be provided under the land recycling loan program during that
fiscal biennium. This bill sets the present value of the land recycling loan program
subsidies that may be provided during the 1999-2001 fiscal biennium at $9,400,000.
Under current law, the department of commerce regulates tanks that store
flammable and combustible liquids. This bill requires the department of commerce
also to regulate tanks that store liquids that are considered hazardous substances
under the federal Superfund Act. Under current law, the department of commerce
collects a $100 groundwater fee for plan review and approval for tanks that store
flammable and combustible liquids and that have a capacity of 1,000 gallons or more.
Under this bill, the groundwater fee also applies to plan review of tanks that store
liquids that are considered hazardous substances under the federal Superfund Act
and that have a capacity of 1,000 gallons or more.
Water quality
Under the clean water fund program, this state currently provides financial
assistance for projects for controlling water pollution, including sewage treatment
plants. One form of financial assistance provided is a loan at a subsidized interest
rate. The budget act for each fiscal biennium establishes the present value of the
subsidies that may be provided under the clean water fund program during that
fiscal biennium. This bill sets the present value of the clean water fund program
subsidies that may be provided during the 1999-2001 fiscal biennium at
$87,400,000.
Currently, under the safe drinking water loan program, this state provides
loans to local governmental units for projects for the construction or modification of
public water systems. The loans are provided at subsidized interest rates. The
budget act for each fiscal biennium establishes the present value of the subsidies that
may be provided under the safe drinking water loan program during that fiscal
biennium. This bill sets the present value of the safe drinking water loan program
subsidies that may be provided during the 1999-2001 fiscal biennium at $5,200,000.
Under current law, the state is authorized to contract public debt in an amount
not to exceed $12,130,000 to fund the safe drinking water loan program. This bill
increases that amount to an amount not to exceed $16,000,000.
One form of assistance that the clean water fund program, the safe drinking
water program and the land recycling loan program provide is a loan at a subsidized
interest rate. Another form of assistance is a payment to the board of commissioners
of public lands to reduce interest payments on a loan from the board for a project that
is eligible for assistance under one of the programs.
This bill provides that a payment to the board of commissioners of public lands
under the clean water fund program, the safe drinking water loan program or the
land recycling loan program may not exceed the amount of subsidy necessary to
provide the loan directly under the clean water fund program, the safe drinking
water loan program or the land recycling loan program.
Under current law, DNR, in conjunction with the department of agriculture,
trade and consumer protection (DATCP), the land and water conservation board
(LWCB) and local governmental units, administers a program to provide financial
assistance for measures to reduce water pollution from nonpoint (diffuse) sources.
Current law authorizes the issuance of general obligation bonds as one source of
funding for the financial assistance under the nonpoint source program. This bill
increases the bonding authority for the nonpoint source program from $34,363,600
to $48,763,600.
Current law authorizes DNR to provide cost-sharing grants for projects to
assist agricultural facilities to comply with nonpoint source water pollution control
requirements established by DNR and DATCP. These cost-sharing grants are
currently funded with proceeds of general obligation bonds. This bill increases the
bonding authority for the cost-sharing grants from $2,000,000 to $4,000,000.
Under current law, the nonpoint source program is funded with general
purpose state revenues, segregated revenues from the environmental fund and
proceeds of state bonds. This bill provides additional funds for financial assistance
under the nonpoint source program from moneys paid to this state under Indian
gaming compacts. The bill also provides funds to be paid to the Oneida Nation under
the nonpoint source program from moneys paid to this state under Indian gaming
compacts.
Under current law, persons who discharge wastewater into the waters of this
state are required to pay an annual wastewater discharge fee to DNR. DNR is
required to structure the fee so that municipalities that are subject to the fee pay 50%
of the total charged and other persons that are subject to the fee pay the other 50%.
Currently, DNR may not charge total fees that exceed $7,450,000. This bill changes
the cap on the wastewater discharge fee to $7,925,000.
Under current law, DNR and the department of health and family services
establish standards for the concentration of contaminants in groundwater. When
the groundwater standards are exceeded, action must be taken under this state's
groundwater law. This bill authorizes DNR to charge a fee for placing information
concerning a property on which a groundwater standard is exceeded into a database.
Air quality
Under current law, the owner or operator of a stationary source of air pollution
who must obtain an air pollution control permit from DNR is required to pay an
annual fee to DNR. The fee is a specified amount per ton of certain air pollutants
emitted by the stationary source in the preceding year, except that an owner or
operator is generally not required to pay the fee for emissions of any pollutant in
excess of 4,000 tons per year.
This bill establishes a new facility fee for stationary sources that emit a total
of at least five tons of the pollutants on which the current fee is based. The fee ranges
from $50 to $20,000, depending on the total amount of those pollutants emitted.
Under current law, generally a person may not begin construction of a
stationary source of air pollution without a construction permit issued by DNR. This
bill authorizes DNR to issue general construction permits, each of which may cover
numerous similar stationary sources of air pollution.
Current law authorizes DNR to establish, by rule, fees for inspecting
nonresidential asbestos demolition and renovation projects regulated by DNR. The
fees may not exceed $200 per project. This bill raises the limit on fees for inspecting
nonresidential asbestos demolition and renovation projects to $210.
Under current law, the department of justice (DOJ) generally is responsible for
taking actions in court to enforce environmental laws. This bill authorizes DNR to
issue a citation (similar to a traffic ticket) if it determines that a person has violated
certain of DNR's rules related to asbestos abatement and management. The bill
requires DNR to promulgate rules, which must be approved by DOJ, specifying the
violations for which citations may be issued. Under the bill, the same procedures are
used for the issuance of a citation and the collection of a forfeiture as are used for
hunting and fishing violations.
Recycling
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 a grant under the
program is generally the lesser of 66% of eligible net costs or $8 per person served,
except that, if the lesser of those two amounts is less than 33% of the eligible
expenses, the amount of the grant is 33% of the eligible expenses.
This bill reduces the maximum amount of a grant that may be awarded under
this financial assistance program. Under the bill, the amount of a grant is the greater
of 66% of eligible net costs or 33% of the eligible expenses, except that the grant may
not exceed $8 per person. This change effectively sets a maximum grant amount of
$8 per person and makes grants based on 33% of the eligible expenses subject to
proration of grants if the sum of grants payable under the program exceeds available
funds. The financial assistance program currently expires after 2000. This bill
extends the program through 2001.
Current law prohibits the disposal of listed recyclable materials in a landfill.
The prohibition does not apply to any city, village, town, county or other
governmental unit that is responsible for the region's solid waste management
(responsible unit) and that operates an effective recycling program. A recycling
program is an effective recycling program if it meets specified criteria. In addition
to the exception from the disposal prohibition, a responsible unit that administers
an effective recycling program is eligible for a state grant to reimburse the
responsible unit for some of its costs incurred in operating the effective recycling
program.
Under current law, beginning in 2000, a responsible unit's recycling program
is an effective recycling program only if the responsible unit has in place a system
of volume-based solid waste fees to generate revenue equal to the responsible unit's
costs for solid waste management other than those reimbursed by the state. This
criterion does not apply to any responsible unit that separates for recycling at least
25% by volume or by weight of the solid waste collected within the region by the
responsible unit or by any person under contract with the responsible unit, or to any
responsible unit that provides solid waste to an operating solid waste treatment
facility under a contract that was in effect on January 1, 1993.
This bill eliminates the requirement that, to have its recycling program
considered an effective recycling program, a responsible unit have in place a system
of volume-based solid waste fees to generate revenue equal to the responsible unit's
costs for solid waste management other than those reimbursed by the state.
The recycling market development board (board), which is attached to the
department of commerce and which will be eliminated on June 30, 2001, has various
powers and duties related to recycling, including awarding financial and other
assistance to improve the marketing of, and to develop markets for, certain materials
recovered from solid waste. The board may contract with other persons to accomplish
any of its powers and duties. Funding for the board's contracts comes from the
recycling fund. Funding for the financial assistance that the board awards comes
from the recycling fund and from repayments of loans made by recipients of financial
assistance awarded by the board. This bill eliminates the recycling fund as a funding
source for the board's contracts and financial assistance and provides that the
funding for both comes solely from repayments of loans made by recipients of
financial assistance awarded by the board.
The department of commerce made loans before July 1, 1995, for various
purposes related to recycling. Repayments of those loans are deposited in the
recycling fund. This bill provides that repayments of those loans are to be used to
fund the board's contracts and financial assistance that the board awards.
This bill requires DNR to award grants of $75,000 on September 1, 1999, and
$50,000 on July 1, 2000, to the Wheelchair Recycling Project for the purpose of
refurbishing used wheelchairs and other mobility devices and returning them to use
by persons who otherwise would not have access to needed or appropriate equipment.
Other environment
