Pilot program
Current federal law and state law require construction permits and operation
permits for certain stationary sources of air pollution. Under certain circumstances,
DNR may issue a registration permit authorizing construction or operation or both
for a stationary source with low actual or potential emissions.
This bill creates a pilot program under which a participating owner or operator
of a stationary source is not required to make changes to the source's air pollution
controls due to new or modified legal requirements, except as required under the
federal Clean Air Act, for ten years after DNR issues a registration permit for the
source. This exemption would apply only if the source 1) is classified as a minor
source, which is a facility that emits air contaminants from a fixed location in an
amount that is less than an amount specified by DNR by rule; 2) is a manufacturing
facility that is being constructed on formerly contaminated land that has been
certified by DNR as having been remediated; and 3) is included in the Green Tier
Program, under which entities voluntarily undertake actions that are likely to result
in significant reductions in emissions of greenhouse gases or in energy use.
Tax deeds
Under current law, before the county takes a foreclosure judgment on a
brownfield property for which the owner has failed to pay property taxes, the county
may assign its foreclosure rights to a person who agrees to remediate, maintain, and
monitor the property according to rules promulgated by DNR.
This bill provides that a county may also assign its right to take a tax deed on
brownfield property to a person who agrees to remediate, maintain, and monitor the
property according to DNR rules.
Tax incremental financing; environmental remediation
This bill changes the way environmental remediation tax incremental districts
are created.
Under the current tax incremental financing program, a city or village may
create a TID in part of its territory to foster development if at least 50 percent of the
area to be included in the TID is blighted, in need of rehabilitation or conservation,
suitable for industrial sites, or suitable for mixed-use development. Currently,
towns and counties also have a limited ability to create a TID under certain
circumstances. Before a city or village may create a TID, several steps and plans are
required. These steps and plans include public hearings on the proposed TID within
specified time frames, preparation and adoption by the local planning commission
of a proposed project plan for the TID, approval of the proposed project plan by the
common council or village board, approval of the city's or village's proposed TID by
a joint review board that consists of members who represent the overlying taxation
districts, and adoption of a resolution by the common council or village board that
creates the TID as of a date provided in the resolution.
Also under current law, once a TID has been created, the Department of
Revenue calculates the “tax incremental base" value of the TID, which is the
equalized value of all taxable property within the TID at the time of its creation. If
the development in the TID increases the value of the property in the TID above the
base value, a “value increment" is created. That portion of taxes collected on the
value increment in excess of the base value is called a “tax increment." The tax
increment is placed in a special fund that may be used only to pay back the project
costs of the TID.
The project costs of a TID, which are initially incurred by the creating city or
village, include public works such as sewers, streets, and lighting systems; financing
costs; site preparation costs; and professional service costs. DOR authorizes the
allocation of the tax increments until the TID terminates or, generally, 20 years, 23
years, or 27 years after the TID is created, depending on the type of TID and the year
in which it was created. Also under current law, a city or village may not generally
make expenditures for project costs later than five years before the unextended
termination date of the TID. Under certain circumstances, the life of the TID, the
expenditure period, and the allocation period may be extended.
Currently, before a TID may be created or its project plan amended, the city or
village must adopt a resolution containing a finding that the equalized value of
taxable property of the TID plus the value increment of all existing TIDs does not
exceed 12 percent of the total equalized value of taxable property in the city or village
(the 12 percent test), subject to one general exception.
Under current law, the environmental remediation tax incremental financing
statute permits a city, village, town, or county to recoup the costs of remediating
contaminated property from property taxes that are levied on the remediated
property. The mechanism for financing remediation costs is similar to the
mechanism for financing project costs under the tax incremental financing program,
including the political subdivision's adoption of a resolution creating the
environmental remediation tax incremental district (ERTID), joint review board
project plan approval, and DOR certification of the district's tax incremental base.
DOR is required to certify the environmental remediation tax incremental base
if the political subdivision submits to DOR all of the following: 1) a statement that
the political subdivision has incurred some eligible costs, together with a detailed
proposed remedial action plan approved by DNR that contains cost estimates for
anticipated eligible costs, a schedule for the design and implementation that is
needed to complete the remediation, and certification from DNR that it has approved
the site investigation report that relates to the parcel; 2) a statement that all taxing
jurisdictions with authority to levy general property taxes on the parcel of property
have been notified that the political subdivision intends to recover its environmental
remediation costs by using an environmental remediation tax increment; and 3) a
statement that the political subdivision has attempted to recover its environmental
remediation costs from the person who is responsible for the environmental pollution
that is being remediated. Thereafter, the political subdivision that created the
ERTID may use positive environmental remediation tax increments to pay eligible
costs of remediating environmental pollution in the ERTID.
Currently, the maximum life of an ERTID is 23 years and no expenditure for
an eligible cost may be made by a political subdivision later than 15 years after the
environmental remediation tax incremental base is certified by DOR. An ERTID
may also terminate when a political subdivision has received sufficient
environmental remediation tax increments to cover all of the eligible costs.
Under this bill, no new ERTIDs may be created under current ERTID law.
Under the bill, ERTIDs may be created under the existing TID statutes and may
operate just like regular TIDs, subject to a number of conditions and exceptions.
Under the bill, the city or village creating the ERTID must obtain from DNR a
certified site investigation report. To obtain the report, the city or village must
submit to DNR detailed information regarding the environmental pollution that
exists within the boundaries of the proposed ERTID and a proposed remediation
plan. If DNR agrees with the description of the problem and the proposed
remediation plan, it must certify the report. Property containing significant
environmental pollution must constitute the majority of the territory in the proposed
ERTID. A city or village may modify and resubmit the report to DNR if the
department does not approve of the proposed report as submitted.
Under the bill, the 12 percent test does not apply to ERTIDs, and the tax
incremental base of an ERTID must be $1 when the district is created. In addition,
an ERTID created under the current TID law would have a maximum life of 27 years.
ERTIDs may be created under the process created in the bill by a city, village, town,
or county to the same extent that such a political subdivision may currently create
a TID.
Property assessed clean energy loans
Under current law, a city, village, or town may impose a special charge against
real property for services rendered by allocating the cost of the service to the
properties that are served. Generally, a special charge is not payable in installments.
Also under current law, a political subdivision may make a loan to, or enter into a
loan repayment agreement with, an owner or lessee of a premises for making or
installing certain energy or water efficiency improvements (property assessed clean
energy or PACE program). The political subdivision may collect a loan repayment
under the PACE program as a special charge. A special charge imposed under the
PACE program may be collected in installments. Also, a political subdivision may
allow a third party that has provided financing for the PACE program project to
collect the installments.
Under this bill, a political subdivision may make a PACE loan to, or enter a
PACE agreement with, an owner or lessee of a premises for a brownfield
revitalization project. Brownfield revitalization projects are certain actions taken
upon a commercial or industrial premises that is located on, or that constitutes, a
brownfield. A brownfield is an abandoned, idle, or underused industrial or
commercial facility or site, the expansion or redevelopment of which is adversely
affected by actual or perceived environmental contamination. The actions that may
be included within a brownfield revitalization project under this bill are site
assessment, remediation, lead or asbestos abatement, demolition, and other
standard site preparation actions. A political subdivision that makes a PACE loan,
or enters into a PACE agreement, for a brownfield revitalization project must provide
a repayment period of not more than 20 years.
Neighborhood improvement districts and business improvement districts
Under current law, a municipality may create a business improvement district
(BID), upon being petitioned to do so by a business owner whose business is located
in the proposed BID, if a number of steps are taken. A BID consists of contiguous
parcels of land and operates under an operating plan approved by the BID board and
the municipality. The creating municipality may impose special assessments on real
property in the BID, other than real property used exclusively for residential
purposes and property exempt from general property taxes, to provide for
development, redevelopment, maintenance, operation, and promotion of the BID.
Also under current law, a municipality may create a neighborhood
improvement district (NID), upon being petitioned to do so by an owner of real
property that is located in the proposed NID, if a number of steps are taken. In
general, an NID is an area within a municipality consisting of parcels that are nearby
one another, but not necessarily contiguous, at least some of which are used for
residential purposes and are subject to general real estate taxes. An NID operates
under an operating plan approved by the NID board and the municipality. The
creating municipality may impose special assessments on real property located
within the NID, except real property that is used exclusively for fewer than eight
residential dwelling units and real property that is exempt from general property
taxes, to provide for the development, redevelopment, maintenance, operation, and
promotion of the NID.
Under this bill, territory may be annexed to a BID or NID using essentially the
same procedure as for the creation of the BID or NID. Also under this bill, upon
petition by an owner of real property that is subject to general real estate taxes, that
is used exclusively for residential purposes, and that is located in a BID, a BID may
convert to an NID.
State trust fund loans
Under current law, the Board of Commissioners of Public Lands manages the
common school fund, the normal school fund, the university fund, and the
agricultural college fund (trust funds). BCPL also administers a state trust fund
loan program under which it makes loans, from moneys belonging to the trust funds,
to school districts, local governments, and certain other public entities for certain
public purposes. Also under current law, the Wisconsin Constitution prohibits a
municipality from becoming indebted in an amount that exceeds 5 percent of the
taxable property located in the municipality.
This bill provides that a state trust fund loan to a municipality made for the
purpose of funding a project related to brownfields may not be included in arriving
at the constitutional debt limitation if 1) the term of the loan is not more than 15
years, 2) the loan is not in default, and 3) DNR verifies to BCPL that the site on which
the project will occur is a brownfield.
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:
SB173,1
1Section
1. 24.63 (5) of the statutes is created to read:
SB173,6,62
24.63
(5) Brownfield project loans. A state trust fund loan to a city, village,
3or town made for the purpose of funding a project related to brownfields, as defined
4in s. 238.13 (1) (a), may not be included in arriving at the debt limitation under sub.
5(1) or the constitutional debt limitation under article XI, section 3, of the constitution
6if all of the following apply:
SB173,6,77
(a) The term of the loan is not more than 15 years.
SB173,7,1
1(b) The loan is not in default.
SB173,7,42
(c) The department of natural resources verifies to the board that the site on
3which the project will occur is a brownfield, or, if the project encompasses more than
4one site, verifies that not less than 50 percent of the project area is brownfield.
SB173,2
5Section
2. 66.0627 (title) of the statutes is amended to read:
SB173,7,7
666.0627 (title)
Special charges for current services and energy and
7water efficiency improvement loans certain loan repayments.
SB173,3
8Section
3. 66.0627 (1) (a) of the statutes is renumbered 66.0627 (1) (am).
SB173,4
9Section
4. 66.0627 (1) (ad) of the statutes is created to read:
SB173,7,1210
66.0627
(1) (ad) “Brownfield revitalization project" means any of the following
11actions when taken upon commercial or industrial premises that are located on, or
12that constitute, brownfields, as defined in s. 238.13 (1) (a):
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1. Site assessment.
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2. Remediation.
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3. Lead or asbestos abatement.
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4. Demolition.
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5. Standard site preparation actions not included in subd. 1. to 4.
SB173,5
18Section
5. 66.0627 (8) (a) of the statutes is amended to read:
SB173,8,719
66.0627
(8) (a) A political subdivision may make a loan, or enter into an
20agreement regarding loan repayments to a 3rd party for owner-arranged or
21lessee-arranged financing, to an owner or lessee of a premises located in the political
22subdivision
for a brownfield revitalization project or for making or installing an
23energy efficiency improvement, a water efficiency improvement, or a renewable
24resource application to the premises. If a political subdivision makes a loan or enters
25into an agreement under this paragraph, the political subdivision may collect the
1loan repayment as a special charge under this section. Notwithstanding sub. (4), a
2special charge imposed under this paragraph may be collected in installments and
3may be included in the current or next tax roll for collection and settlement under
4ch. 74 even if the special charge is not delinquent.
If a political subdivision makes
5a loan, or enters into an agreement regarding loan repayments to a 3rd party, for a
6brownfield revitalization project under this paragraph, the repayment period may
7exceed 20 years.
SB173,6
8Section
6. 66.0627 (8) (d) of the statutes is amended to read:
SB173,8,179
66.0627
(8) (d) A political subdivision that, under par. (a), makes a loan to, or
10enters an agreement with, an owner for making or installing an improvement or
11application that costs $250,000 or more shall require the owner to obtain a written
12guarantee from the contractor or project engineer that the improvement or
13application will achieve a savings-to-investment ratio of greater than 1.0 and that
14the contract or engineer will annually pay the owner any shortfall in savings below
15this level. The political subdivision may determine the method by which a guarantee
16under this paragraph is enforced.
This paragraph does not apply to a loan or
17agreement for a brownfield revitalization project.
SB173,7
18Section
7. 66.1105 (4) (gm) 4. c. of the statutes is amended to read:
SB173,9,519
66.1105
(4) (gm) 4. c. Except as provided in subs. (10) (c), (16) (d), (17),
and, (18)
20(c) 3.,
and (20) (c) the equalized value of taxable property of the district plus the value
21increment of all existing districts does not exceed 12 percent of the total equalized
22value of taxable property within the city. In determining the equalized value of
23taxable property under this subd. 4. c. or sub. (17) (c), the department of revenue
24shall base its calculations on the most recent equalized value of taxable property of
25the district that is reported under s. 70.57 (1m) before the date on which the
1resolution under this paragraph is adopted. If the department of revenue determines
2that a local legislative body exceeds the 12 percent limit described in this subd. 4. c.
3or sub. (17) (c), the department shall notify the city of its noncompliance, in writing,
4not later than December 31 of the year in which the department receives the
5completed application or amendment forms described in sub. (5) (b).
SB173,8
6Section
8. 66.1105 (20) of the statutes is created to read:
SB173,9,77
66.1105
(20) Environmental remediation districts. (a) In this subsection:
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1. “Environmental pollution" has the meaning given in s. 299.01 (4).
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2. “Environmental remediation tax incremental district" means a tax
10incremental district created under this section, most of the territory of which consists
11of areas that contain significant environmental pollution, and which is subject to the
12conditions and limitations contained in this subsection.
SB173,9,1813
(b) Before a city may adopt a resolution under sub. (4) (gm) with regard to an
14environmental remediation tax incremental district, the local legislative body shall
15obtain under par. (c) a certified site investigation report from the department of
16natural resources. The city shall submit a copy of the certified report to the
17department of revenue before the department may allocate tax increments under
18sub. (6).
SB173,9,2519
(c) To obtain a certified site investigation report, the city shall send to the
20department of natural resources a detailed description of the significant
21environmental pollution that exists in the proposed district, and a proposed remedial
22action plan that contains cost estimates for anticipated project costs and a schedule
23for the design, implementation, and construction that is needed to complete the
24remediation with respect to the proposed district in accordance with rules
25promulgated by the department of natural resources. If the department of natural
1resources agrees with the city's description of the conditions in the proposed district
2and approves of the city's proposed remedial action plan, it shall provide the city with
3written certification that the department of natural resources has approved the site
4investigation report. If the department of natural resources does not approve the
5report, the city may modify and resubmit the report to the department of natural
6resources.
SB173,10,87
(d) With regard to an environmental remediation tax incremental district
8created under this subsection:
SB173,10,99
1. The 12-percent limit specified in sub. (4) (gm) 4. c. does not apply.
SB173,10,1110
2. Notwithstanding the provisions of sub. (5), the tax incremental base of the
11district shall be $1 when the district is created.
SB173,9
12Section
9. 66.1106 (15) of the statutes is created to read:
SB173,10,1413
66.1106
(15) Sunset. No district may be created under this section on or after
14the effective date of this subsection .... [LRB inserts date].
SB173,10
15Section
10. 66.1109 (2m) of the statutes is created to read:
SB173,10,1716
66.1109
(2m) A municipality may annex territory to an existing business
17improvement district if all of the following are met:
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(a) An owner of real property used for commercial purposes and located in the
19territory proposed to be annexed has petitioned the municipality for annexation.
SB173,10,2020
(b) The planning commission has approved the annexation.
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(c) At least 30 days before annexation of the territory, the planning commission
22has held a public hearing on the proposed annexation. Notice of the hearing shall
23be published as a class 2 notice under ch. 985. Before publication, a copy of the notice
24together with a copy of a detail map showing the boundaries of the territory proposed
25to be annexed to the business improvement district shall be sent by certified mail to
1all owners of real property within the territory proposed to be annexed. The notice
2shall state the boundaries of the territory proposed to be annexed.
SB173,11,113
(d) Within 30 days after the hearing under par. (c), the owners of property in
4the territory to be annexed that would be assessed under the operating plan having
5a valuation equal to more than 40% of the valuation of all property in the territory
6to be annexed that would be assessed under the operating plan, using the method of
7valuation specified in the operating plan, or the owners of property in the territory
8to be annexed that would be assessed under the operating plan having an assessed
9valuation equal to more than 40% of the assessed valuation of all property in the
10territory to be annexed that would be assessed under the operating plan, have not
11filed a petition with the planning commission protesting the annexation.
SB173,11
12Section
11. 66.1109 (4g) of the statutes is created to read:
SB173,11,1913
66.1109
(4g) A municipality may convert a business improvement district
14under this section into a neighborhood improvement district under s. 66.1110 if an
15owner of real property that is subject to general real estate taxes, that is used
16exclusively for residential purposes, and that is located in the business improvement
17district petitions the municipality for the conversion. If the municipality approves
18the petition, the board shall consider and may make changes to the operating plan
19under s. 66.1110 (4) (b).
SB173,12
20Section
12. 66.1110 (4m) of the statutes is created to read:
SB173,11,2221
66.1110
(4m) A municipality may annex territory to an existing neighborhood
22improvement district if all of the following conditions are met:
SB173,11,2523
(a) An owner of real property subject to general real estate taxes and located
24in the territory proposed to be annexed has petitioned the municipality for
25annexation.
SB173,12,1
1(b) The planning commission has approved the annexation.
SB173,12,82
(c) At least 30 days before annexation, the planning commission has held a
3public hearing on the proposed annexation. Notice of the hearing shall be published
4as a class 2 notice under ch. 985. Before publication, a copy of the notice, together
5with a copy of a detail map showing the boundaries of the territory proposed to be
6annexed to the neighborhood improvement district, shall be sent by certified mail to
7all owners of real property within the territory proposed to be annexed. The notice
8shall state the boundaries of the territory proposed to be annexed.
SB173,12,109
(d) Within 30 days after the hearing under par. (c), one of the following has not
10filed a petition with the planning commission protesting the proposed annexation:
SB173,12,1411
1. The owners of property in the territory to be annexed that would be assessed
12under the operating plan having a valuation equal to more than 40 percent of the
13valuation of all property in the territory to be annexed that would be assessed under
14the operating plan, using the method of valuation specified in the operating plan.
SB173,12,1815
2. The owners of property in the territory to be annexed that would be assessed
16under the operating plan having an assessed valuation equal to more than 40 percent
17of the assessed valuation of all property in the territory to be annexed that would be
18assessed under the operating plan.
SB173,13
19Section
13. 75.106 (2) of the statutes is amended to read:
SB173,12,2420
75.106
(2) Assignment authorized. Before a judgment is issued under s. 75.521
21or a tax deed is executed under s. 75.14, the governing body of a county may assign
22to a person the county's right to take judgment with respect to any parcel that is
23subject to
the county's foreclosure
action under s. 75.521
or to take a tax deed with
24respect to any parcel subject to s. 75.14, if all of the following apply:
SB173,13,4
1(a) The governing body of the county provides written notice to the governing
2body of the city, town
, or village in which the parcel
that is subject to the county's
3foreclosure action is located at least 15 days before the governing body of the county
4meets to consider the approval of the assignment.
SB173,13,75
(b) The governing body of the county produces a written assignment that is
6signed on behalf of the county, the assignee and the city, town
, or village in which the
7parcel
that is subject to the county's foreclosure action is located.
SB173,13,98
(c) The assignment identifies the parcel for which a judgment
or tax deed is
9assigned.
SB173,13,1010
(d) The parcel for which a judgment
or tax deed is assigned is a brownfield.
SB173,13,1411
(e) The assignment requires an environmental assessment of the parcel and
12requires that the department be provided the results of that assessment before a
13final judgment under s. 75.521
or a tax deed under s. 75.14 related to the parcel is
14granted to the assignee.
SB173,13,2315
(f) The assignment requires that, if the parcel is contaminated by the discharge
16of a hazardous substance, as determined by the assessment under par. (e), and if the
17assignee elects to accept the judgment
or deed assigned under this subsection
18regardless of the contamination, the assignee enter into an agreement with the
19department, before a final judgment is issued under s. 75.521
or a tax deed is issued
20under s. 75.14 related to the parcel, to clean up the parcel to the extent practicable;
21to minimize any harmful effects from the hazardous substance pursuant to rules the
22department promulgates; and to maintain and monitor the parcel pursuant to rules
23the department promulgates.
SB173,14,224
(g) The assignment and an affidavit from the county treasurer that attests to
25the county governing body's approval of the assignment are filed with the court that
1is presiding over the county's foreclosure action under s. 75.521
or, in the case of a
2tax deed issued under s. 75.14, with the register of deeds.
SB173,14
3Section
14. 75.106 (4) of the statutes is renumbered 75.106 (4) (a) and
4amended to read: