Under current law, a voluntary party is exempt from absolute requirements to
restore the environment and minimize the harmful effects of a discharge, and from
the requirements of other laws relating to hazardous substances, if an
environmental investigation of the property is conducted, the property is cleaned up,
except with respect to a substance in groundwater that DNR determines will
naturally attenuate, DNR certifies that the cleanup restored the environment and
minimized the harmful effects of the discharge except with respect to the substance
that DNR has determined will naturally attenuate, the voluntary party maintains
and monitors the property as required by DNR, and, if required by DNR, the
voluntary party obtains insurance to cover the costs of cleanup if natural attenuation
fails.
This bill provides that to qualify for the liability exemption for property on
which DNR determines that natural attenuation will successfully complete the
cleanup, a voluntary party who owns the property must provide access to the
property for the purpose of determining whether natural attenuation has failed and,
if so, to allow someone else clean up the property.
Under current law, a voluntary party is exempt from liability with respect to
the existence of a hazardous substance on property if the hazardous substance is
discovered in the course of a cleanup and if the voluntary party has obtained
insurance to cover the costs of cleaning up hazardous substances discovered in the
course of the cleanup. This bill eliminates this exemption from liability.
Petroleum storage remedial action
Under current law, the department of commerce administers a program to
reimburse owners of certain petroleum product storage tanks for a portion of the
costs of cleaning up discharges from those tanks. This program is commonly known
as PECFA. This bill makes several changes in the laws related to PECFA.
Under current law, this state issues revenue bonds to fund a portion of the
PECFA costs. This bill increases the PECFA revenue bonding limit by $100,000,000.
Under current law, PECFA provides reimbursement for some interest costs
incurred by applicants. Under this bill, with specified exceptions, if an applicant
submits the final PECFA claim later than the 60th day after completing all clean-up
activities, the applicant is ineligible for reimbursement for interest costs incurred
after that day; if clean-up activities are not completed within ten years after the
investigation of the discharge was completed, the applicant is ineligible for
reimbursement for interest costs incurred after that ten-year period; and if an
investigation was completed more than five years after the applicant notified the
department of commerce about the discharge or more than two years after this bill
becomes law, whichever is later, the applicant is ineligible for reimbursement for
interest costs incurred after the later of those periods. These provisions limiting
interest cost reimbursement do not apply to applicants who receive federal or state
financial assistance, other than under PECFA, and who are either local
governmental units or engaged in brownfields redevelopment.
Under current law, DNR oversees the cleanup of high-risk sites under PECFA,
and the department of commerce oversees the cleanup of other sites. Under this bill,
a high-cost site is a site at which more than $200,000 in eligible costs under PECFA
have been incurred. Under the bill, the department of commerce oversees the
cleanup of a site that becomes a high-cost site after November 30, 2001, once more
than $400,000 in eligible costs under PECFA have been incurred or more than seven
years have elapsed since the investigation of the discharge was completed. The bill
imposes requirements on DNR and the department of commerce to oversee cleanups
so that clean-up activities are completed at high-cost sites within specified periods.
Under current law, farm petroleum product storage tanks of 1,100 gallons or
less capacity are covered under PECFA only if the owner of the tank owns at least
35 acres of land devoted primarily to agricultural use that produced gross farm
profits of at least $6,000 in the year before the owner applies for PECFA
reimbursement, or gross farm profits of at least $18,000 during the three years before
application.
This bill expands PECFA coverage of farm tanks so that a farm tank owner who
formerly owned at least 35 acres of land devoted primarily to agricultural use is
eligible if the owner submits a PECFA claim within one year after he or she
transferred ownership of the land and if the land produced gross farm profits of at
least $6,000 in the year before the owner transferred ownership of the land, or gross
farm profits of at least $18,000 during the three years before the owner transferred
ownership of the land. The bill also provides that a farm tank owner is eligible for
PECFA coverage only if the farm tank is located on the parcel of land that meets the
gross profits test.
Other hazardous substances and environmental cleanup
Under current law, DNR administers the Brownfield Site Assessment Grant
Program, under which DNR awards grants to local governmental units for such
activities as investigating environmental contamination, asbestos abatement
activities, and removing abandoned underground storage tanks. This bill transfers
the Brownfield Site Assessment Grant Program to the department of commerce.
Under current law, DNR administers the Sustainable Urban Development
Zone Program. Under the program, DNR provides funds to the city of Beloit, the city
of Green Bay, the city of La Crosse, the city of Milwaukee, and the city of Oshkosh
to investigate environmental contamination and to conduct cleanups of brownfields
in those cities. This bill eliminates the Sustainable Urban Development Zone
Program.
Current law authorizes the issuance of general obligation bonds to pay for
actions taken to clean up the environment under specified programs administered
by DNR. This bill increases the general obligation bonding authority for these
clean-up programs by $5,000,000. Of this amount, $2,000,000 is allocated for
cleanups in or adjacent to the Great Lakes or their tributaries.
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 where the environmental contamination has
affected, or threatens to affect, groundwater or surface water. The loans are
subsidized, so that recipients are not required to pay interest. Each biennial budget
act establishes the present value of the subsidies that may be provided under the
Land Recycling Loan Program during that biennium. This bill sets the present value
of the Land Recycling Loan Program subsidies that may be provided during the
2001-03 biennium at $9,110,000.
Under current law, DNR administers the Dry Cleaner Environmental
Response Program (DERP), under which DNR reimburses a portion of the costs of
responding to discharges of dry cleaning solvents from dry cleaning facilities. DERP
is funded by dry cleaning license and solvent fees paid by owners and operators of
dry cleaning facilities. Under this bill, DNR provides reimbursement for the costs
of responding to discharges of other kinds of dry cleaning products, in addition to
solvents.
Under current law, the deductible under DERP generally ranges from $10,000
to $76,000, depending on the amount of eligible costs. However, for a dry cleaning
facility that has closed before the owner or operator applies under DERP, the
deductible is increased. This bill eliminates the higher deductible for closed dry
cleaning facilities.
Currently under DERP, the owner or operator of a dry cleaning facility on which
construction began after October 4, 1997, is required to have implemented five
specified pollution prevention measures. This requirement does not generally apply
to older dry cleaning facilities. Under this bill, beginning one year after this bill takes
effect, all dry cleaning facilities must have implemented three of the pollution
prevention requirements in order to be eligible under DERP.
Current law authorizes DNR to cooperate with the federal environmental
protection agency (EPA) in implementing the federal Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA, also called
the Superfund Act), which provides for the clean up of contaminated property. This
bill authorizes DNR to accept the transfer of an interest in property that was
acquired by EPA as part of a CERCLA cleanup. The bill also authorizes DNR to
acquire an interest in property from any person as part of a cleanup conducted in
cooperation with EPA if the acquisition is necessary to conduct the cleanup.
Water quality
Under the Clean Water Fund Program, this state provides financial assistance
for projects for controlling water pollution, including sewage treatment plants.
Financial assistance is typically provided in the form of a loan at a subsidized
interest rate. Each biennial budget act establishes the present value of the subsidies
that may be provided under the Clean Water Fund Program during that biennium.
This bill sets the present value of the Clean Water Fund Program subsidies that may
be provided during the 2001-03 biennium at $90,000,000. The bill increases the
general obligation bonding authority for the Clean Water Fund Program by
$65,000,000 when the bill is enacted and an additional $20,000,000 on July 1, 2003.
The bill also increases the revenue bonding authority for the Clean Water Fund
Program by $92,000,000.
Generally, under the Clean Water Fund Program, funds are allocated to a
project as soon as the project is approved. However, if the amount of present value
subsidy, general obligation bonding authority, or revenue bonding authority
available for a biennium is 85% or less of the amount requested in a biennial finance
plan prepared by DOA and DNR, funding is allocated on the basis of a priority list
and funding may be provided in a fiscal year only to projects for which an application
is submitted by the June 30 preceding that fiscal year. This bill reduces the threshold
for allocating funds based on a priority list from 85% to 75%.
Under current law, a collection system or interceptor in an unsewered area is
eligible for subsidized financial assistance under the Clean Water Fund Program
only if at least two-thirds of the initial flow will be for wastewater originating from
residences in existence on October 17, 1972. This bill eliminates the reference to
October 17, 1972, and provides that a collection system or interceptor in an
unsewered area is eligible for subsidized financial assistance under the Clean Water
Fund Program only if at least two-thirds of the initial flow will be for wastewater
originating from residences in existence on the date that is ten years before the day
that DNR approves the facility plan for the project.
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. Each biennial budget
act 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 2001-03 biennium at $10,900,000.
Current law requires permits from DNR for certain storm water discharges,
including discharges of storm water from a municipal storm sewer system serving
an incorporated area with a population of 100,000 or more.
This bill requires permits for additional municipal storm sewer systems, as now
required by federal law. Under the bill, the operator of a municipal storm sewer
system must obtain a permit if one of the following applies:
1. The system serves an urbanized area, as determined by the U.S. bureau of
the census.
2. The system serves an area with a population of 10,000 or more and a
population density of 1,000 or more per square mile and DNR requires the operator
to obtain a permit based on an evaluation of the system's impact on water quality.
3. DNR requires the operator to obtain a permit because the system contributes
pollutants to an interconnected system that is required to obtain a permit.
Under current law, DNR, in conjunction with DATCP and local governmental
units, administers a program to provide financial assistance for measures to reduce
water pollution from nonpoint (diffuse) sources. This bill increases the general
obligation bonding authority for the Nonpoint Source Program by $22,400,000.
Under the Nonpoint Source Program, a number of watersheds and lake areas
were selected for priority watershed and priority lake projects. Under current law,
no new priority watersheds or priority lakes may be selected. The bill prohibits DNR
from extending funding for a priority watershed or priority lake project beyond the
funding termination date that was in effect on January 1, 2001, or, if no funding
termination date was in effect on January 1, 2001, beyond the funding termination
date first established after January 1, 2001.
Under the Nonpoint Source Program, local governmental units annually apply
for cost-sharing grants from DNR for new nonpoint source projects. A project is
eligible for funding only if it is in a target area. An area may be a target area based
on several criteria, including the need for compliance with performance standards
established by DNR for nonpoint sources that are not agricultural. A project
qualifies for funding only if it cannot be conducted with funding provided by DATCP
under the Soil and Water Resource Management Program.
This bill adds that an area may be a target area under the Nonpoint Source
Program based on the need for compliance with performance standards established
by DNR for nonpoint sources that are agricultural. The bill also provides that a
project qualifies for funding if DNR, in consultation with DATCP, determines that
funding under the Soil and Water Resource Management Program is insufficient to
fund the project.
Under current law, DNR administers the Municipal Flood Control and
Riparian Restoration Program, under which DNR awards grants that pay a portion
of the costs of facilities and structures for the collection and transmission of storm
water and of the purchase of flowage and conservation easements on lands within
floodways. DNR also administers the Urban Nonpoint Source Water Pollution
Abatement and Storm Water Management Program, under which DNR awards
grants for projects that manage urban storm water and runoff from urban areas to
minimize flooding and protect groundwater. This bill increases the general
obligation bonding authority for the two programs by $11,000,000.
Voluntary environmental improvement
This bill creates the Green Tier Program, administered by DNR. The program
is designed to improve the environmental performance of public and private entities
through the provision of incentives. There are three tiers in the Green Tier Program.
A participant may participate in more than one tier.
A public or private entity that is subject to environmental laws (regulated
entity) may participate in tier I of the Green Tier Program. To participate, a
regulated entity must conduct an environmental performance evaluation or have an
environmental management system. An environmental performance evaluation is
a systematic review of the effects of a facility on the environment, including an
evaluation of compliance with one or more environmental laws. An environmental
management system is a set of procedures designed to evaluate the effects of a facility
on the environment and to achieve improvements in those effects.
To participate in tier I, the regulated entity must submit a report to DNR
describing the results of the environmental performance evaluation or describing
findings from the environmental management system. At the time of submitting the
report, more than two years must have elapsed since the regulated entity was
prosecuted or issued a citation for violating an environmental law. The report must
describe any violations of environmental laws revealed by the environmental
performance evaluation or environmental management system and the actions
taken or proposed to be taken to correct the violations. If the regulated entity
proposes to take more than 90 days to correct the violations, the regulated entity
must submit a proposed compliance schedule.
The bill generally prohibits this state from bringing an action to collect a
forfeiture (a civil monetary penalty) for a violation of an environmental law that is
disclosed by a regulated entity that satisfies the requirements for participation in
tier I of the Green Tier Program if the regulated entity corrects the violation within
the 90-day period or within the time provided in a compliance schedule that was
approved by DNR. The bill authorizes this state to begin an action to collect
forfeitures from a regulated entity that satisfies the requirements for participation
in tier I of the Green Tier Program at any time under several circumstances,
including cases in which a violation presents an imminent threat or may cause
serious harm to public health or the environment or in which DNR discovers the
violation before the regulated entity reports the violation.
An entity or a group of entities may participate in tier II of the Green Tier
Program. If a group applies, all of the requirements for participation apply to all of
the members of the group.
At the time of application for tier II, more than five years must have elapsed
since the applicant was convicted of a criminal violation of an environmental law that
resulted in substantial harm to public health or the environment or that presented
an imminent threat to public health or the environment; more than three years must
have elapsed since a civil judgment was entered against the applicant for a violation
of an environmental law that resulted in substantial harm to public health or the
environment; and more than two years must have elapsed since the applicant was
prosecuted or issued a citation for violating an environmental law.
To participate in tier II, an applicant must also have implemented or must
commit itself to implementing an environmental management system. The
applicant must specify objectives for improving its environmental performance or for
voluntarily restoring, enhancing, or preserving natural resources. The applicant
must also commit itself to conducting annual audits of its environmental
management system and to submitting reports to DNR on those audits.
The bill requires DNR to provide public recognition to an entity that
participates in tier II of the Green Tier Program. The bill also requires DNR to assign
one of its employees to serve as the contact with DNR for a participant in tier II for
all licenses and permits that the participant must obtain from DNR. After a
participant in tier II implements an environmental management system, DNR must
conduct inspections of the participant's facilities that are covered under green tier
at the lowest frequency that is permitted under DNR's rules.
An entity or a group of entities may participate in tier III of the Green Tier
Program. If a group applies, all of the requirements for participation apply to all of
the members of the group. A participant in tier III enters into a green tier contract
with DNR. The contract specifies the participant's commitments and the incentives
that will be provided to the participant.
At the time of application for tier III, more than ten years must have elapsed
since the applicant was convicted of a criminal violation of an environmental law that
resulted in substantial harm to public health or the environment or that presented
an imminent threat to public health or the environment; more than five years must
have elapsed since a civil judgment was entered against the applicant for a violation
of an environmental law that resulted in substantial harm to public health or the
environment; and more than two years must have elapsed since the applicant was
prosecuted or issued a citation for violating an environmental law.
To participate in tier III, an applicant must have implemented an
environmental management system. The applicant must commit itself to having an
outside auditor conduct annual audits of the environmental management system
and to submitting reports on those audits to DNR. The applicant must also commit
itself to annually conducting audits of its compliance with environmental laws and
to submitting the results of those audits to DNR.
Finally, to participate in tier III, an applicant must demonstrate that it has a
record of superior environmental performance and describe the measures that it
proposes to take to maintain and improve its superior environmental performance.
"Superior environmental performance" means that an entity minimizes the negative
effects of its pollutants on the environment or human health to an extent that is
greater than is required by law or that an entity voluntarily engages in restoring,
enhancing, or preserving natural resources.
If DNR determines that an applicant qualifies for participation in tier III, DNR
may enter into negotiations with the applicant about a green tier contract. DNR may
permit interested third parties to participate in the negotiations. If the parties reach
an agreement, they may enter into a green tier contract with a term of not more than
five years, subject to renewal for terms of not more than five years each. The bill
authorizes DNR to promulgate rules specifying incentives that may be provided to
participants in tier III.
The bill establishes a grant program under which the department of commerce
makes grants to nongovernmental organizations to help those organizations develop
the capacity to participate as interested third parties in the Green Tier Program and
makes grants to assist in the development of environmental management systems.
Other environment
Under current law, a registrant is required to pay an environmental impact fee
of $6 upon registering a new motor vehicle with DOT or upon applying for a new
certificate of title following a transfer of a vehicle. The environmental impact fees
are credited to the environmental fund and are earmarked for environmental
management activities. Currently, the law requiring a registrant to pay an
environmental impact fee expires on June 30, 2001. This bill extends that expiration
date to September 30, 2003.
Under current law, DNR may characterize a solid waste as a special waste
available for beneficial use in a public works project and must maintain a public list
of those special wastes. Currently, a contracting agency in a public works project may
require the use of those special wastes in a public works project. Current law grants
immunity from liability to any person who used those special wastes in a public
works project if that use occurred while performing work under the contract for the
public works project, the contract permitted or required the use of those special
wastes, and the use conformed to the contract provisions. Current law makes the
immunity inapplicable to reckless, wanton, or intentional misconduct or if death or
injury of an individual resulted from the use. Under current law, DNR may grant
a research waiver or an exemption from the requirements regarding the disposal or
recycling of high-volume industrial wastes and certain other solid wastes.
Under this bill, solid wastes that DNR has exempted from the disposal
requirement are considered special wastes and DNR may characterize them as
suitable for use in public works projects. The bill requires DNR to maintain a list of
special wastes that are suitable for use in specified types of public works projects.
Under the bill, the current provisions regarding liability apply to the use of those
listed special wastes in public works projects if the conditions established for their
use are met.
Current law generally requires a person to obtain a construction permit from
DNR before beginning construction of a stationary source of air pollution. This bill
authorizes DNR to issue a general construction permit, which may cover numerous
similar stationary sources of air pollution.
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 amount of the fee is required to be based, among other
things, on actual emissions of pollutants from the source in the preceding five years,
using a five-year rolling average. Under this bill, the fee must be based on actual
emissions of pollutants from the source in the preceding year, rather than the
preceding five years.
This bill requires DNR to award grants to assist local governmental units to
establish regional recycling programs.
health and human services
Medical assistance
Under current federal and state law, medical assistance (MA) is a
jointly-funded, federal-state program to provide health care services to eligible
low-income individuals; federal medicaid funds (known as "federal financial
participation") are provided to match state funds expended for MA. Prescription
drug manufacturers enter into agreements with the federal government to provide
rebates for prescription drugs purchased under MA. Under current state law,
pharmacies and pharmacists that are certified providers of MA services are
reimbursed at a rate established by DHFS for providing certain prescription drugs
to MA recipients.
Under this bill, DHFS must request from the federal department of health and
human services a waiver of federal medicaid laws to permit DHFS to conduct a
project to expand MA eligibility solely for the purpose of purchasing prescription
drugs for persons who are at least 65, who have not had outpatient prescription drug
coverage from any source other than MA for 12 months, and whose annual household
incomes do not exceed 185% of the federal poverty line. If the waiver is granted, an
eligible person with a household income of up to 155% of the federal poverty line,
after paying a $25 annual enrollment fee and after paying specified deductible
amounts for prescription drugs calculated at the pharmacy discount rate, would be
entitled to purchase prescription drugs for copayment amounts specified in the bill.
A pharmacy or pharmacist who sells a drug at the reduced price would receive
reimbursement for the difference between the copayment and the pharmacy
discount rate amount from state general purpose revenues and federal medicaid
moneys. Persons with household incomes over 155% but less than 186% of the
federal poverty line, however, would only be eligible to purchase prescription drugs
at the pharmacy discount rate. Under the bill, this project may not be implemented
if the federal government creates a national prescription drug benefit program for
seniors that would provide similar benefits to a similar population. In addition,
DHFS must first secure approval from DOA and JCF.
The bill requires that DOA and DHFS work to develop, in conjunction with
other states and with associations, a multistate purchasing group to negotiate with
prescription drug manufacturers for MA prescription drug rebate agreements for
greater rebates for prescription drugs than those achievable under federal law.
Under the bill, DOA must also contract with a private entity to administer a discount
program for the purchase of prescription drugs that would be generally available to
anyone, regardless of age or income.
The bill requires that DHFS work with DOA to contract with a private entity
for the bulk purchase and mail order delivery of prescription drugs for MA recipients
who voluntarily participate in the discount program and who have chronic
conditions. Further, DHFS and DOA must promote private prescription drug
assistance plans that offer free and reduced-price drugs and prescription drug
discounts to members. DHFS must inform tribes, certain health centers, and other
entities that are eligible for a federal prescription drug discount program about the
program and provide technical assistance to the entities in applying for and
implementing benefits under the program.
Under current law, DWD administers the eligibility determination aspect of
MA; DHFS administers all other aspects of MA. Currently, DWD contracts with
county departments of social services or human services (county departments) to
determine the eligibility of individuals for MA. Under these contracts, DWD
reimburses the county departments for the reasonable costs of determining the
eligibility of individuals for each program. The amount that is reimbursed to each
county department is calculated using a formula based on each county's workload
and the amount of available state and federal moneys. DWD is also required to
investigate suspected fraudulent activity on the part of individuals who receive MA
benefits and to reduce errors in the payment of benefits.
This bill requires DWD and DHFS, jointly, to contract with county departments
to reimburse the county departments for the reasonable costs of determining the
eligibility of individuals for MA. Under the bill, only DWD makes the payments for
reimbursement to the county departments but the payments are funded, in part, by
an appropriation to DHFS. The bill requires DHFS to establish its own program to
investigate possible fraud on the part of MA recipients and to reduce errors in the
payments of MA or, in the alternative, to contract with DWD to conduct these
activities.
