SB495: Bill Text

To participate in tier II of the environmental results program, an applicant must satisfy several requirements. A participant in tier II enters into a participation 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 II, 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 civil 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 have implemented an environmental management system that satisfies certain requirements. The applicant must commit itself to having an environmental auditor approved by DNR 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, or having someone else conduct, audits of its compliance with environmental laws and to submitting the results of those audits to DNR.

Finally, to participate in tier II, 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's performance results in a measurable or discernible improvement in the quality of the air, water, land, or natural resources or in the protection of the environment beyond that which is achieved under environmental laws.

If DNR determines that an applicant qualifies for participation in tier II, DNR may enter into negotiations with the applicant about a participation contract. DNR may permit interested third parties to participate in the negotiations. If the parties reach an agreement, they may enter into a contract with a term of from three to ten years, subject to renewal for terms of the same length. The bill requires DNR to ensure that the incentives provided under a participation contract are proportional to the environmental benefits that will be provided by the participant. The bill authorizes DNR to promulgate rules specifying incentives that are consistent with federal and state law that may be provided to participants in tier II.

A participant in tier II may be able to avoid having to pay a forfeiture for an environmental violation that the participant discovers thorough an audit of its environmental management system or an audit of its environmental compliance and reports to DNR under provisions that are similar to those under the environmental improvement program.

The bill authorizes DNR to issue environmental results charters to associations of entities to assist the entities to participate in tier I or tier II and to achieve superior environmental performance. In a charter, the entities describe the goals of the association and the responsibilities and activities that the entities will engage in to accomplish their goals.

The bill requires DNR and the department of commerce to provide information about environmental management systems to potential participants in the environmental results program. The bill also creates an environmental results council to advise DNR about the environmental results program.

The bill prohibits DNR from approving applications for the environmental results program after July 1, 2007.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB495, s. 1 Section 1. 15.347 (3) of the statutes is created to read:

SB495,5,6 15.347 (3) Environmental results council. There is created in the department of natural resources an environmental results council consisting of 15 members appointed for 5-year terms. The governor shall appoint members representing environmental organizations, businesses, and local governmental units and members who do not represent any of these entities.

SB495, s. 2 Section 2. 299.83 of the statutes is created to read:

SB495,5,8 299.83 Environmental results program. (1) Definitions. In this section:

SB495,5,10 (a) "Covered facility or activity" means a facility or activity that is included, or intended to be included, in the program.

SB495,5,14 (b) "Environmental management system" means an organized set of procedures to evaluate environmental performance and to achieve measurable or noticeable improvements in that environmental performance through planning and changes in operations.

SB495,5,18 (bm) "Environmental management system audit" means a review, of an environmental management system, that is conducted in accordance with standards and guidelines issued by the International Organization for Standardization and the results of which are documented and communicated to employees of the participant.

SB495,6,3 (c) "Environmental performance," unless otherwise qualified, means the effects, whether regulated under chs. 29 to 31, 160, and 280 to 299 or unregulated, of a facility or activity on air, water, land, natural resources, and human health.

SB495,6,6 (d) "Environmental requirement" means a requirement in chs. 29 to 31, 160, or 280 to 299, a rule promulgated under one of those chapters, or a permit, license, other approval, or order issued by the department under one of those chapters.

SB495,6,10 (dg) "Functionally equivalent environmental management system" means an environmental management system that includes all of the following elements and any other elements that the department determines are essential elements of International Organization for Standardization standard 14001:

SB495,6,13 1. Adoption of an environmental policy that includes a commitment to compliance with environmental requirements, pollution prevention, and continual improvement in environmental performance.

SB495,6,15 2. An analysis of the environmental aspects and impacts of the entity's activities.

SB495,6,17 3. Plans and procedures to achieve compliance with environmental requirements and to maintain that compliance.

SB495,6,18 4. Identification of all environmental requirements applicable to the entity.

SB495,6,20 5. A process for setting environmental objectives and developing appropriate action plans to meet the objectives.

SB495,6,22 6. Establishment of a structure for operational control and responsibility for environmental performance.

SB495,6,24 7. An employee training program to develop awareness of and competence to manage environmental issues.

SB495,7,2 8. A plan for taking actions to prevent environmental problems and for taking emergency response and corrective actions when environmental problems occur.

SB495,7,5 9. A communication plan for collaboration with employees, the public, and the department on the design of projects and activities to achieve continuous improvement in environmental performance.

SB495,7,7 10. Procedures for control of documents and for keeping records related to environmental performance.

SB495,7,8 11. Audits of the environmental management system.

SB495,7,10 12. A plan for continually improving environmental performance and provision for senior management review of the plan.

SB495,7,14 (dr) "Outside environmental auditor" means an auditor who is functionally or administratively independent of the facility or activity being audited, but who may be employed by the entity that owns the facility being audited or that owns the unit that conducts the activity being audited.

SB495,7,19 (e) "Participation contract" means a contract entered into by the department and a participant in tier II of the program, and that may, with the approval of the department, be signed by other interested parties, that specifies the participant's commitment to superior environmental performance and the incentives to be provided to the participant.

SB495,7,20 (f) "Program" means the environmental results program under this section.

SB495,7,25 (g) "Superior environmental performance" means environmental performance that results in measurable or discernible improvement in the quality of the air, water, land, or natural resources or in the protection of the environment beyond that which is achieved under environmental requirements and that may be achieved in ways that include all of the following:

SB495,8,5 1. Limiting the discharges or emissions of pollutants from, or in some other way minimizing the negative effects on air, water, land, natural resources, or human health of, a facility that is owned or operated by an entity or an activity that is performed by the entity to an extent that is greater than is required by applicable environmental requirements.

SB495,8,9 2. Minimizing the negative effects on air, water, land, natural resources, or human health of the raw materials used by an entity or the products or services produced or provided by the entity to an extent that is greater than is required by applicable environmental requirements.

SB495,8,10 3. Voluntarily engaging in restoring or preserving natural resources.

SB495,8,12 4. Helping other entities to comply with environmental requirements or to accomplish the results described in subd. 1. or 2.

SB495,8,14 5. Organizing uncoordinated entities that produce environmental harm into a program that reduces that harm.

SB495,8,16 6. Reducing waste or the use or production of hazardous substances in the design, production, delivery, use, or reuse of goods or services.

SB495,8,17 7. Conserving energy or nonrenewable natural resources.

SB495,8,19 8. Reducing the use of renewable natural resources through increased efficiency.

SB495,8,21 9. Adopting methods that reduce the depletion of, or long-term damage to, renewable natural resources.

SB495,8,22 (h) "Violation" means a violation of an environmental requirement.

SB495,8,24 (1m) Administration of program. In administering the program, the department shall attempt to do all of the following:

SB495,9,2 (a) Promote, reward, and sustain superior environmental performance by participants.

SB495,9,5 (b) Promote environmental performance that voluntarily exceeds legal requirements related to health, safety, and the environment and results in continuous improvement in this state's environment, economy, and quality of life.

SB495,9,7 (c) Provide clear incentives for participation that will result in real benefits to participants.

SB495,9,11 (d) Promote attention to unregulated environmental problems and provide opportunities for conservation of resources and environmental restoration by entities that are subject to environmental requirements and entities that are not subject to environmental requirements.

SB495,9,13 (e) Make the program compatible with federal programs that create incentives for achieving environmental performance that exceeds legal requirements.

SB495,9,16 (f) Increase levels of trust, communication, and accountability among regulatory agencies, entities that are subject to environmental requirements, and the public.

SB495,9,20 (g) Reduce the time and money spent by regulatory agencies and entities that are subject to environmental requirements on tasks that do not benefit the environment by focusing on more efficient performance of necessary tasks and eliminating unnecessary tasks.

SB495,9,23 (h) Report environmental performance information and data concerning ambient environmental quality to the public in a manner that is accurate, timely, credible, relevant, and useable to interested persons.

SB495,9,25 (i) Provide for the measurement of environmental performance in terms of accomplishing goals and require the reporting of the results.

SB495,10,3 (j) Implement an evaluation system that provides flexibility and affords some protection for experimentation by participants that use innovative techniques to try to achieve superior environmental performance.

SB495,10,4 (k) Remove disincentives to achieving superior environmental performance.

SB495,10,6 (L) Provide for sustained business success as well as a reduction in environmental pollution.

SB495,10,8 (m) Promote the transfer of technological and practical innovations that improve environmental performance in an efficient, effective, or safe manner.

SB495,10,10 (n) Lower the administrative costs associated with environmental requirements and with achieving superior environmental performance.

SB495,10,15 (3) Eligibility for tier i. (a) General. An applicant is eligible for tier I of the program if the applicant satisfies the requirements in pars. (b) to (d). If an applicant consists of a group of entities, each requirement in pars. (b) to (d) applies to each entity in the group. An applicant for tier I of the program shall identify the facilities or activities that it intends to include in the program.

SB495,10,17 (b) Enforcement record. To be eligible to participate in tier I of the program, an applicant shall demonstrate all of the following:

SB495,10,23 1. That, within 60 months before the date of application, no judgment of conviction was entered against the applicant, any managing operator of the applicant, or any person with a 25% or more ownership interest in the applicant for a criminal violation involving a covered facility or activity that resulted in substantial harm to public health or the environment or that presented an imminent threat to public health or the environment.

SB495,11,3 2. That, within 36 months before the date of application, no civil judgment was entered against the applicant, any managing operator of the applicant, or any person with a 25% or more ownership interest in the applicant for a violation involving a covered facility or activity that resulted in substantial harm to public health or the environment.

SB495,11,8 3. That, within 24 months before the date of application, the department of justice has not filed a suit to enforce an environmental requirement, and the department of natural resources has not issued a citation to enforce an environmental requirement, because of a violation involving a covered facility or activity.

SB495,11,10 (c) Environmental performance. To be eligible to participate in tier I of the program, an applicant shall submit an application that describes all of the following:

SB495,11,12 1. The applicant's past environmental performance with respect to each covered facility or activity.

SB495,11,14 2. The applicant's current environmental performance with respect to each covered facility or activity.

SB495,11,17 3. The applicant's plans for activities that enhance the environment, such as improving the applicant's environmental performance with respect to each covered facility or activity.

SB495,11,19 (d) Environmental management system. To be eligible to participate in tier I of the program, an applicant shall do all of the following:

SB495,11,22 1. Demonstrate that it has implemented, or commit itself to implementing within one year of application, an environmental management system, for each covered facility or activity, that is all of the following:

SB495,11,25 a. In compliance with the standards for environmental management systems issued by the International Organization for Standardization or determined by the department to be a functionally equivalent environmental management system.

SB495,12,3 b. Determined by the department to be appropriate to the nature, scale, and environmental impacts of the applicant's operations related to each covered facility or activity.

SB495,12,5 2. Include, in the environmental management system under subd. 1., objectives in at least 2 of the following areas:

SB495,12,8 a. Improving the environmental performance of the applicant, with respect to each covered facility or activity, in aspects of environmental performance that are regulated under chs. 29 to 31, 160, and 280 to 299.

SB495,12,11 b. Improving the environmental performance of the applicant, with respect to each covered facility or activity, in aspects of environmental performance that are not regulated under chs. 29 to 31, 160, and 280 to 299.

SB495,12,12 c. Voluntarily restoring, enhancing, or preserving natural resources.

SB495,12,16 3. Explain to the department the rationale for the choices of objectives under subd. 2. and describe any consultations with residents of the areas in which each covered facility or activity is located or performed and with other interested persons concerning those objectives.

SB495,12,21 4. Conduct, or commit itself to conducting, annual environmental management system audits, with every 3rd environmental management system audit performed by an outside environmental auditor approved by the department, and commit itself to submitting an annual report on the environmental management system audit to the department in compliance with sub. (6m) (a).

SB495,12,23 5. Commit itself to submitting to the department an annual report on progress toward meeting the objectives under subd. 2.

SB495,13,2 (4) Process for tier i. (a) Upon receipt of an application for participation in tier I of the program, the department shall provide public notice about the application in the area in which each covered facility or activity is located or performed.

SB495,13,4 (b) After providing public notice under par. (a) about an application, the department may hold a public informational meeting on the application.

SB495,13,10 (c) The department shall approve or deny an application within 60 days after providing notice under par. (a) or, if the department holds a public informational meeting under par. (b), within 60 days after that meeting. The department may limit the number of participants in tier I of the program, or limit the extent of participation by a particular applicant, based on the department's determination that the limitation is in the best interest of the program.

SB495,13,12 (d) A decision by the department under par. (c) to approve or deny an application is not subject to review under ch. 227.

SB495,13,14 (4m) Incentives for tier i. (a) The department shall issue a numbered certificate of recognition to each participant in tier I of the program.

SB495,13,16 (b) The department shall identify each participant in tier I of the program on an Internet site maintained by the department.