SB1: Bill Text

Under current law and under this bill, before beginning mining the operator must furnish to DNR a bond or other security in an amount sufficient to cover the cost of reclamation of the mining site, in relation to the portion of the mining site that will be disturbed at the end of the following year.

Current law also requires the operator of a mining waste facility to provide proof of financial responsibility for the costs of the care, maintenance, and monitoring of the facility after it is closed (long-term care). The requirement to provide proof of financial responsibility for long-term care continues until DNR terminates that requirement, which it may not do until at least 40 years after closure of the mine.

Under this bill, the operator of an iron mining waste facility is also required to provide proof of financial responsibility for the costs of the long-term care of the facility. Under the bill, the requirement to provide proof of financial responsibility for long-term care of the mining waste facility terminates after 40 years.

Water withdrawals

Under current law

There are several laws that may currently apply to withdrawals of groundwater or surface water.

Current law requires a permit (surface water withdrawal permit) issued by DNR for certain withdrawals of water from a stream or lake, including withdrawals for metallic mining. The law requires DNR to deny a surface water withdrawal permit for metallic mining if the injury to public rights caused by the withdrawal exceeds the public benefits generated by the mining or if the withdrawal would unreasonably injure rights of riparian (waterfront) property owners unless the riparian property owners consent to the proposed withdrawal. Current law also regulates withdrawals of groundwater. The law prohibits a property owner from constructing a well that, together with other wells on the same property, has a capacity of more than 100,000 gallons per day (a high capacity well) or from engaging in the removal of more than 100,000 gallons per day of water from a mine without an approval from DNR. Current law prohibits DNR from issuing an approval for the withdrawal of groundwater for mining or for removing water from (dewatering) a mine if the withdrawal or removal would result in the unreasonable detriment of public or private water supplies or the unreasonable detriment of public rights in the waters of the state. Current law provides that if DNR determines that a proposed high capacity well may impair the water supply of a public utility, then DNR may not approve the well unless it includes certain approval conditions that will ensure that the water supply of the public utility will not be impaired. If DNR determines that a proposed high capacity well that has a water loss of 95 percent of the amount of water withdrawn, may have a significant impact on a spring, or is located in an area within 1,200 feet of certain outstanding or exceptional resource waters or certain trout streams, then DNR generally may not approve the well unless it includes certain approval conditions that will ensure that the high capacity well will not cause significant adverse environmental impact.

Current law also provides that if a person to whom DNR has issued a surface water withdrawal permit or a high capacity well approval proposes to begin a new withdrawal or increase an existing withdrawal that will result in a water loss beyond a specified threshold amount, then that person must apply to DNR for approval (water loss application). A water loss is a loss of water from the basin from which it is withdrawn as a result of interbasin diversion or consumptive use. The water loss application must contain certain information including the place and source of the proposed withdrawal, the estimated average volumes and rates of water loss, the anticipated costs of any proposed construction, and a description of the conservation practices that the applicant intends to follow. To approve a water loss application, DNR must find, among other things, that the proposed withdrawal and use of the water is consistent with the protection of public health, safety, and welfare and will not be detrimental to the public interest; that the proposed withdrawal will not have a significant detrimental effect on the quantity and quality of the waters of the state; that no public rights in navigable waters will be adversely affected; and that the applicant incorporates reasonable conservation practices. If DNR approves the water loss application, it must specify certain conditions with regard to the water withdrawal, such as the amount of water loss that is allowed and any other conditions necessary to protect the environment and public health, safety, and welfare.

Finally, the current law that implements the Great Lakes Water Resources Compact requires water use permits for certain withdrawals of groundwater or surface water.

This bill establishes different requirements for surface water and groundwater withdrawals relating to iron mining, except that the current law that implements the Great Lakes Water Resources Compact continues to apply. In lieu of a surface water withdrawal permit, an approval for a high capacity well or dewatering a mine, and approval of a water loss application, a person who, as part of an iron mining operation or bulk sampling (explained below), engages in a surface water withdrawal, in a withdrawal of groundwater that exceeds 100,000 gallons a day, or in the dewatering of mines that exceeds 100,000 gallons a day, must obtain a water withdrawal permit from DNR (mining water withdrawal permit). This bill specifies that a person is not required to be the owner of riparian property in order to obtain a permit to withdraw surface water from that riparian property if the person leases the riparian property from the owner or holds an easement on the riparian property. The bill also specifies that a person is not required to be the owner of a piece of property in order to obtain a permit to withdraw groundwater from that piece of property if the person leases the piece of property from the owner, the person holds an easement on the piece of property, or the person has obtained permission from the owner to withdraw groundwater from that piece of property. If the withdrawal of water will involve one or more high capacity wells, DNR must require the applicant to submit a siting analysis that includes alternate proposed locations for each well. In evaluating the siting analysis, DNR must recognize that there is a need for mining waste sites and processing facilities to be contiguous to the location of the ferrous mineral deposits and must allow any high capacity well to be located so that need will be met. DNR must approve the location of each well as part of the process for issuing a mining water withdrawal permit.

The bill requires DNR to issue a mining water withdrawal permit if the withdrawal meets certain requirements (general requirements). Among those requirements is that the proposed withdrawal and use of the water is substantially consistent with the protection of public health, safety, and welfare and will not be significantly detrimental to the public interest; that it will not be significantly detrimental to the quantity or quality of the waters of this state; that it will not significantly impair the rights of riparian owners or the applicant obtains the consent of riparian owners; and that it will not result in significant injury to public rights in navigable waters. The bill requires that the applicant submit a plan to DNR that contains proposed conservation measures, such as mitigation, compensation, or offsetting of significant impacts to navigable waters by restoring or enlarging up to 1.5 acres of a natural navigable water in exchange for each acre of a natural navigable water that is significantly impacted (offsetting impacts to navigable waters). After DNR reviews the application and plan, DNR must issue a permit if it finds that the general requirements will be met by implementing some or all of the conservation measures.

Under the bill, if DNR determines that a high capacity well proposed by an applicant may impair a privately owned high capacity well, DNR must include conditions in the water withdrawal permit that will ensure that the privately owned well will not be impaired, unless the owner of the private well agrees to the impairment. The bill authorizes DNR to impose other reasonable conditions in the mining water withdrawal permit, as long as the conditions do not interfere with, or limit the amount of water needed for, the iron mining operation or bulk sampling. The bill also allows an iron mining operator to request a modification of any condition in the mining water withdrawal permit and establishes certain deadlines under which DNR must approve or deny the request for modification. The bill specifies that if a request for modification results in an increase in an existing withdrawal resulting in a water loss averaging more than a specified number of gallons per day in a 30-day period, then DNR must determine whether, under its rules, it is required to prepare an environmental assessment or environmental impact statement. If so, then DNR must prepare the environmental assessment or environmental impact statement.

Navigable waters

Under current law, DNR regulates certain activities that occur in or near navigable waterways. In order for a person to conduct such an activity, the person may be required to obtain one or more permits from DNR. Among the permits that DNR issues are permits to place structures or deposits in navigable waters, permits to construct or maintain bridges and culverts, permits to enlarge or connect waterways, permits to change the courses of streams and rivers, and permits to remove material from beds of navigable waterways (waterway permits). Current law also requires that DNR have in place general permits for some of these activities. Under current law, some activities are exempt from these requirements.

In order to receive an individual waterway permit for the navigable waters activities regulated by DNR, the activity must meet certain requirements. These requirements vary depending on the type of permit issued, and may include requirements that address possible environmental pollution, obstruction to navigation, reduction to flood flow capacity, and interference with the rights of other riparian owners. The bill modifies certain of these requirements for the purpose of issuing individual waterway permits associated with bulk sampling or iron mining. Under the bill, in lieu of these requirements in current law, an individual waterway permit will be issued if it will not significantly impair the public's rights and interests in navigable waters, will not significantly reduce flood flow capacity, will not significantly affect riparian rights, and will not significantly degrade water quality. Requirements for issuing individual waterway permits under current law that are not modified under the bill continue to apply to the extent that they do not conflict with any other provision in the bill. The bill requires that the applicant submit a plan to DNR that contains proposed measures, such as improving public rights in navigable waters, conducting wetland mitigation, or offsetting impacts to navigable waters. After DNR reviews the application and plan, DNR must issue a permit if it finds that the requirements will be met by implementing some or all of the measures. Under current law, to qualify for some individual waterway permits or to conduct activities under certain permit exemptions, a person must be an owner of riparian property. This bill provides that for the purposes of obtaining an individual waterway permit associated with bulk sampling or iron mining, a person who is not a riparian owner may exercise a riparian right held by a riparian owner if the person exercises that right with respect to riparian property that the person leases or on which the person holds an easement.

Exemptions

Current law authorizes DNR to promulgate rules under which it may grant to an applicant for a metallic mining permit an exemption to a rule promulgated under the solid waste, hazardous waste, or metallic mining laws, but not to a statute, if the exemption does not result in a violation of any federal or state environmental statute or endanger public health, safety, or welfare or the environment.

This bill authorizes an applicant for an iron mining permit to request an exemption from any requirement in the iron mining laws created in the bill applicable to a mining permit application, a mining permit, or any other approval issued by DNR that is needed to conduct the iron mining. The request must be submitted no more than 180 days after the application for the mining permit is considered to be complete. DNR must grant or deny the exemption within 15 days. DNR must grant the exemption if it is consistent with the purposes of the iron mining laws created in the bill; it does not violate other applicable environmental laws; and either: 1) it will not result in significant adverse environmental impacts, or 2) it will result in significant adverse environmental impacts but the applicant will offset those impacts through compensation, mitigation, or conservation measures, except that DNR may not grant the exemption if granting it would violate federal law.

Relation to other laws

Current law provides that if there is a standard under other state or federal statutes or rules that specifically regulates in whole an activity also regulated under the metallic mining law, the standard under the other statutes or rules is the controlling standard. If the other federal or state statute or rule only specifically regulates the activity in part, it is controlling as to that part.

Under this bill, if there is a conflict between a provision of the iron mining laws and a provision in another state environmental law, other than the law related to the Great Lakes Water Resources Compact, the provision in the iron mining laws controls.

Exploration

Current law requires a person who intends to engage in exploration to be licensed by DNR. Exploration is drilling to search for minerals or to establish the nature of a known mineral deposit. The law requires DNR to promulgate rules containing minimum standards for exploration and for the reclamation of exploration sites.

This bill also requires a person who intends to engage in exploration for iron ore to be licensed by DNR. The bill requires an applicant for an exploration license to file an exploration plan and a reclamation plan that include provisions related to the matters for which DNR is required to establish standards under current law. The bill contains requirements for filling drillholes once exploration has been completed that are similar to the requirements in DNR's current rules.

Under the current rules, DNR must deny the application for an exploration license if it finds that the exploration will not comply with the standards for exploration and reclamation or if the explorer is in violation of the rules.

Under the bill, DNR must deny the application for an exploration license if it concludes that, after the reclamation plan has been completed, the exploration will have a substantial and irreparable adverse impact on the environment or present a substantial risk of injury to public health and welfare. If DNR intends to deny a license, it must notify the applicant of that intent and the reasons for the intended denial and give the applicant ten days to correct the problems with its application.

As under current DNR rules, the bill generally requires DNR to issue or deny an application for an exploration license within ten business days of receipt of the application. Under the bill, however, if DNR does not comply with that deadline, the exploration license is automatically issued.

Bulk sampling

Under current law, a person may not prospect for metallic ore without a prospecting permit from DNR. Prospecting is examining an area to determine the quantity and quality of metallic minerals by means other than drilling, for example, by excavating. Under current law, the process for obtaining a prospecting permit is similar to the process for obtaining a mining permit. When a person completes prospecting, the person must conduct reclamation, that is, must rehabilitate the site to either its original state or, if that is physically or economically impracticable or environmentally or socially undesirable, to a state that provides long-term environmental stability.

Under the bill, a person intending to examine an area to determine the quantity and quality of iron ore by means other than drilling is not required to obtain a prospecting license.

The bill allows a person who intends to engage in bulk sampling to file a bulk sampling plan with DNR. Bulk sampling is excavating in a potential mining site to assess the quality and quantity of iron ore deposits and to collect and analyze data to prepare the application for a mining permit or other approval. A person who files a bulk sampling plan must do all of the following:

1. Describe the bulk sampling site and the methods to be used for bulk sampling.

2. Submit a plan for controlling surface erosion that identifies how adverse impacts to plant and wildlife habitats will be avoided or minimized to the extent practicable.

3. Submit a plan for revegetation, but not for reclamation, that describes how adverse environmental impacts will be avoided or minimized to the extent practicable, how the site will be revegetated and stabilized, and how adverse impacts to plant and wildlife habitats will be avoided or minimized to the extent practicable.

4. Describe any known adverse environmental impacts that are likely to be caused by bulk sampling and how those impacts will be avoided or minimized to the extent practicable.

5. A description of any adverse effects that the bulk sampling might have on any historic property or on any scenic or recreational areas and plans to avoid or minimize those adverse effects to the extent practicable.

The bill requires DNR, within 14 days of receipt of a bulk sampling plan, to identify in writing any kind of approval that DNR issues that is needed to conduct the proposed bulk sampling, such as a wastewater discharge permit or a permit for a discharge into wetlands, and any waivers, exemptions, or exceptions to those approvals that may be available.

The bill requires a person who has submitted a bulk sampling plan to submit all applications for approvals and for waivers, exemptions, or exceptions to approvals for the bulk sampling at one time.

The bill specifies deadlines for DNR to act on approvals needed to conduct bulk sampling that would not otherwise apply to those types of approvals. When a person who files a bulk sampling plan applies for an approval or a waiver, exemption, or exception to an approval, the application is considered to be complete on the 30th day after DNR receives the application, unless before that day DNR informs the person that the application is not complete. Once an application is considered to be complete, DNR must act within 30 days on an application for a waiver, exemption, or exception to an approval, for a determination that an activity is below the threshold that requires an approval, or for a determination of eligibility for coverage under a general permit or a registration permit. For other approvals, DNR must act within 60 days after the application is considered to be complete, except that DNR must act on an approval for an individual permit, such as a wastewater discharge permit, for which federal law requires an opportunity for public comment or the ability to request a hearing before issuance of the permit within 180 days.

DNR is not required to prepare an environmental impact statement for proposed bulk sampling. Also, the bill requires DNR to act on any required construction site erosion control or storm water management approval, even if DNR has authorized a local program to issue approvals for construction site erosion control or stormwater management. This bill does not allow a contested case hearing on any approval needed to conduct bulk sampling.

Fees

Under current law, a person who gives notice of intent to apply for a metallic mining permit must pay a fee established by DNR by rule designed to cover the costs incurred by DNR in connection with the proposed mining during the year following receipt of the notice of intent. The person must also pay fees for any approvals other than the mining permit that are needed to conduct the mining. The law requires DNR to annually compare the fees paid by an applicant with the costs incurred by DNR in connection with the proposed mining. If the costs incurred by DNR exceed the fees paid, the person must pay a fee equal to the difference.

Under this bill, an applicant is required to pay a mining permit application fee, but is not required to pay an application or filing fee for any other approval, except for an application fee for an approval for a water diversion for which review by the other parties to the Great Lakes Water Resources Compact is required. The bill requires DNR to assess a mining permit application fee equal to its costs for evaluating a mining project or $2,000,000, whichever is less. An applicant must pay $100,000 with the bulk sampling plan or, if no bulk sampling plan is filed, with the notice of intent to file a mining permit application and then must make $250,000 payments when DNR shows that the previous payments have been fully allocated against actual costs. In addition to these fees, if DNR contracts with a consultant to assist in preparation of the EIS and awards that contract on the basis of competitive bids, the applicant must pay the full costs under the contract.

Current law imposes fees on the disposal of solid waste, commonly called tipping fees. Of those fees, under the bill, the operator of a mining waste site must pay the groundwater fee, the environmental repair fee, and the solid waste facility siting board fee but is not subject to the recycling fee.

Net proceeds occupation tax

Under current law, the state imposes a net proceeds occupation tax on the mining of metallic minerals in this state. The tax is based, generally, on a percentage of net income from the sale of ore or minerals after certain mining processes have been applied to the ore or minerals.

Under current law, the revenue collected from the net proceeds occupation tax is deposited into the investment and local impact fund. The fund is managed by the local impact fund board. The revenue is then, generally, distributed to the counties and municipalities in which metallic minerals are being mined.

Under the bill, 60 percent of the revenue collected from the net proceeds occupation tax on extracting ferrous metallic minerals in this state is deposited into the investment and local impact fund and 40 percent of the revenue is deposited into the economic development fund.

The bill provides that when the revenue that is deposited into the economic development fund is appropriated to the Wisconsin Economic Development Corporation (WEDC), WEDC must use the revenue to make grants and loans to businesses in this state, giving preference to businesses in an area affected by iron mining.

Under current law, in addition to paying the net proceeds occupation tax, a person who intends to apply for a mining permit must make three payments of $50,000 each to the investment and local impact fund. The bill increases the payments to $75,000 each.

Other

Procedures for utility facility approvals

Under current law, with certain exceptions, a person may not begin the construction of certain utility facilities before the Public Service Commission (PSC) has issued to the person either a certificate of public convenience and necessity (CPCN) or a certificate authorizing the person to transact public utility business (PSC certificate). Current law also provides that a utility facility that is required to obtain a PSC certificate and that is required to obtain one or more permits from the Department of Natural Resources (DNR), such as a permit allowing the placement of a structure in navigable waters, must use a procedure that requires the utility facility to submit only one application to DNR for all of the required DNR permits (combined permit procedure) rather than submitting separate applications to DNR for each permit. Current law also specifies that the applicant under the combined permit procedure must submit the combined application for permits to DNR at the same time that the applicant files an application for a PSC certificate.

This bill makes the combined permit procedure optional for an applicant proposing to construct a utility facility for iron mining activities and allows the applicant to submit separate applications to DNR for each required permit. Under the bill, if the utility facility does not use the combined permit procedure, it is not required to file a DNR permit application at the same time that it files an application for a PSC certificate.

Current law requires a person proposing to construct a large electric generating facility or high-voltage transmission line (facility) to provide DNR with an engineering plan or project plan for the facility at least 60 days before filing an application with PSC for a CPCN. Within 30 days thereafter, DNR must provide the person with a listing of each DNR approval that appears to be required for the construction or operation of the facility. Current law requires the person to file the application for these approvals within 20 days after receiving the listing from DNR. This bill eliminates this 20-day deadline for a person proposing to construct a facility for iron mining activities and also specifies that the person must only apply for those approvals identified in the listing that are applicable.

Shoreland and floodplain zoning

Current law prohibits locating a solid waste facility in an area that is covered by a shoreland or floodplain zoning ordinance unless the facility is authorized under a permit issued by DNR. This bill requires DNR to specify in the permit the authorized location, height, and size of the facility that may be located in the area. This bill also specifies that DNR may not prohibit a waste site, structure, building, fill, or other development or construction activity (activity) to be located in an area that would otherwise be prohibited under a shoreland zoning ordinance if the activity is authorized by DNR as part of a mining operation covered by an iron mining permit.

Current law provides that a structure, building, fill, or development (structure) that is placed or maintained in a floodplain in violation of a floodplain zoning ordinance is a public nuisance and provides that any person placing or maintaining the structure may be subject to a fine. The bill specifies that these provisions do not apply to a structure placed or maintained as part of a mining operation covered by an iron mining permit issued by DNR, except to the extent necessary for the municipality to which the ordinance applies to maintain eligibility for participation in the National Flood Insurance Program.

Local impact committees

Current law authorizes a local or tribal government likely to be substantially affected by proposed metallic mining to establish a local impact committee for purposes that include facilitating communications with the mining company, reviewing and commenting on reclamation plans, and negotiating an agreement between the local or tribal government and the mining company. The law requires the mining company to appoint a person to be the liaison with the local impact committee and requires the mining company to make reasonable efforts to design and carry out mining operations in harmony with community development objectives. Under some circumstances, a local impact committee may receive funding from the investment and local impact fund board.

This bill provides for local impact committees for proposed iron mines in a manner similar to the manner in which those committees are established under current law.

Rights and conditions relating to mining contracts and leases

Current law establishes certain rights and imposes certain conditions with respect to contracts or leases that authorize a person to dig for ores and minerals, including the conditions under which a miner may retain ore and minerals discovered on the land, a miner's obligation to keep and to provide certain records concerning mine operations, and the consequences to a miner who conceals or disposes of any ores or minerals for the purpose of defrauding a lessor. Current law also establishes a maximum term for exploration mining leases with regard to minerals that contain metals.

This bill limits these current law provisions to mining activities relating to nonferrous metallic mining.

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:

SB1,1 Section 1. 20.370 (2) (gh) of the statutes is amended to read:

SB1,27,6 20.370 (2) (gh) Mining — Nonferrous metallic mining regulation and administration. The amounts in the schedule for the administration, regulation and enforcement of nonferrous metallic mining exploration, prospecting, mining and mine reclamation activities under ch. 293. All moneys received under ch. 293 shall be credited to this appropriation.

SB1,2 Section 2. 20.370 (2) (gi) of the statutes is created to read:

SB1,27,10 20.370 (2) (gi) Ferrous metallic mining operations. All moneys received under subch. III of ch. 295 for the department of natural resource's operations related to ferrous metallic exploration and mining.

SB1,3 Section 3. 20.455 (1) (gh) of the statutes is amended to read:

SB1,28,2 20.455 (1) (gh) Investigation and prosecution. Moneys received under ss. 23.22 (9) (c), 49.49 (6), 100.263, 133.16, 281.98 (2), 283.91 (5), 289.96 (3) (b), 291.97 (3), 292.99 (2), 293.87 (4) (b), 295.19 (3) (b) 2., 295.79 (4) (b), and 299.97 (2), for the expenses of investigation and prosecution of violations, including attorney fees.

SB1,4 Section 4. 20.566 (7) (e) of the statutes is amended to read:

SB1,28,6 20.566 (7) (e) Investment and local impact fund supplement. The amounts in the schedule to supplement par. (v) for the purposes of ss. 70.395, 293.33 (4) and, 293.65 (5) (a), 295.443, and 295.61 (9) (a) and (c).

SB1,5 Section 5. 20.566 (7) (v) of the statutes is amended to read:

SB1,28,11 20.566 (7) (v) Investment and local impact fund. From the investment and local impact fund, all moneys received under s. 70.395 (1e) and (2) (dc) and (dg), less the moneys appropriated under s. 20.370 (2) (gr), to be disbursed under ss. 70.395 (2) (d) to (g), 293.33 (4) and, 293.65 (5) (a) , 295.443, and 295.61 (9) (a) and (c).

SB1,6 Section 6. 23.321 (2g) of the statutes is created to read:

SB1,28,18 23.321 (2g) Services for mining operations. In addition to those persons authorized to request a wetland identification or confirmation under sub. (2) (b) or (c), a holder of an easement may request such an identification or confirmation if the identification or confirmation is associated with an application for a wetland individual permit or other approval for which a wetland impact evaluation is required and that is subject to s. 295.60.

SB1,7 Section 7. 25.46 (7) of the statutes is amended to read:

SB1,28,22 25.46 (7) The fees imposed under s. 289.67 (1) for environmental management, except that for each ton of waste, of the fees imposed under s. 289.67 (1) (cp) or (cv), $3.20 for each ton of waste is for nonpoint source water pollution abatement.

SB1,8 Section 8. 25.49 (2m) of the statutes is created to read:

SB1,28,24 25.49 (2m) The moneys transferred under s. 70.395 (1e).

SB1,9 Section 9. 29.604 (4) (intro.) of the statutes is amended to read:

SB1,29,2 29.604 (4) Prohibition. (intro.) Except as provided in sub. (6r) and (7m) or as permitted by departmental rule or permit:

SB1,10 Section 10. 29.604 (4) (c) (intro.) of the statutes is amended to read:

SB1,29,8 29.604 (4) (c) (intro.) No person may do any of the following to any wild plant of an endangered or threatened species that is on public property or on property that he or she does not own or lease, except in the course of forestry or agricultural practices or, in the construction, operation, or maintenance of a utility facility, or as part of bulk sampling activities under s. 295.45: