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Summary

The federal standard that regulates hazardous air pollutant emissions from halogenated solvent cleaning operations became effective on December 2, 1994. That standard is one of the approximately 173 national emission standards for hazardous air pollutants (NESHAP's) that the U.S. Environmental Protection Agency expects to promulgate by 2002.

Section 144.375 (5), Stats., requires the Department to promulgate these NESHAP's by rule. This order [AM-24-96] would establish the halogenated solvent cleaning operations NESHAP [Please note that NESHAP's are also called maximum achievable control technology (MACT) standards] through revisions to chs. NR 400, 406, 407, 460 and 484; and creation of s. NR 468.26, Wis. Adm. Code.

Sources that use solvents that contain one or more of 6 halogenated compounds (methylene chloride, trichloroethylene, perchloroethylene, carbon tetrachloride, chloroform, and 1,1,1 trichloroethane) in combined concentrations greater than 5% by weight in solvent cleaning machines are affected by the standard. This standard does not affect fabric, wood, paper, sponge, and wipe cleaning operations.

Fiscal Impact

Because all affected sources must meet the federal requirements, promulgating this proposed rule will not pose additional costs on them. Local governments have no role in implementing these standards and, therefore, should not incur additional costs.

The Department's Bureau of Air Management is currently required to receive reports from and issue permits to sources that are affected by this proposed rule; consequently, promulgating this proposed rule will not pose additional costs on the Department.

Notice of Hearing

Natural Resources

(Environmental Protection--
Air Pollution Control, Chs. NR 400--)

Notice is hereby given that pursuant to ss. 144.31 (1) (a), 144.375 (5) and 227.11 (2) (a), Stats., interpreting s. 144.375 (5), Stats., the Department of Natural Resources will hold a public hearing on amendments to ss. NR 439.01 (2) and 484.04 table 2 and the creation of ch. NR 460, Wis. Adm. Code, relating to general provisions for emission standards for hazardous air pollutants.

Agency Analysis

The Department is required to promulgate by rule the national emission standards for hazardous air pollutants (NESHAP). The proposed rule would establish the state version of the general provisions. The general provisions require sources affected by a NESHAP to submit a notification identifying themselves to the U.S. Environmental Protection Agency or the Department within 120 days of promulgation unless another time frame for notification is provided in the new U.S. EPA source category standard. Under proposed ch. NR 460, this initial notification requirement would become both state and federally enforceable. The majority of the proposed rule is identical to the federal rule.

The revisions to ch. NR 439 clarify that the requirements of proposed ch. NR 460 are in addition to and supersede the provisions of ch. NR 439. The revisions to ch. NR 484 provide additional references to U.S. EPA test methods published in the code of federal regulations.

Initial Regulatory Flexibility Analysis

Notice is hereby further given that pursuant to s. 227.114, Stats., the proposed rule may have an impact on small businesses. The initial regulatory flexibility analysis is as follows:

a. Types of small businesses affected: Any small business that emits hazardous air pollutants.

b. Description of reporting and bookkeeping procedures required: No new procedures not already required by federal regulation.

c. Description of professional skills required: No skills that are not already required by federal regulation.

Environmental Assessment

Notice is hereby further given that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code; however, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.

Hearing Information

Notice is hereby further given that the hearing will be held on:

June 12, 1996   Room 585, GEF #3

Wednesday   125 South Webster St.

At 9:00 a.m.   MADISON, WI

Notice is hereby further given that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Robert Park at [phone] with specific information on your request at least 10 days before the date of the scheduled hearing.

Written Comments and Contact Person

  Written comments on the proposed rule may be submitted to Mr. Roger Fritz, Bureau of Air Management, P.O. Box 7921, Madison, WI 53707 no later than June 28, 1996. Written comments will have the same weight and effect as oral statements presented at the hearing.

Copies of Proposed Rule and Fiscal Estimate

  A copy of proposed rule AM-22-96 and its fiscal estimate may be obtained from:

Phone: [phone]

FAX: [phone]

Proposed Rules

Bureau of Air Management

P.O. Box 7921

Madison, WI 53707

Fiscal Estimate

Summary

Under s. 144.375 (5), Stats., the Department is required to promulgate by rule the federal emission standards for hazardous air pollutants. The proposed rule mimics the existing federal rule which establishes general notification, monitoring, recordkeeping and reporting requirements for rules to be promulgated before May 15, 2002 and addressing 173 industrial categories.

The Department already implements the federal general provisions as required as part of the operation permit program under ch. NR 407, Wis. Adm. Code, and as required under s. 144.394 (12), Stats. The proposed rule would be cited in operation permits for affected facilities, which might be more efficient than copying and including the full text of the federal requirement.

The proposed rule would also apply to smaller facilities that are not required to obtain an operation permit, but are required to comply with the hazardous emission standards adopted by the Department under chs. NR 461 to 469, Wis. Adm. Code, in accordance with s. 144.395 (5), Stats. The cost for each of those industrial category standards would be considered in the fiscal estimate for those proposed rules. The only independent requirement of the proposed general provisions is the requirement for affected facilities to submit a copy of the federally required initial notification to the Department. The cost for receiving and filing the notifications is minuscule. Subsequent use of the notifications would be either included as part of the operation permit program or as part of program implementation for new rules and would be included in the fiscal estimate for the new applicable standard.

Because all affected facilities must meet the federal requirements, promulgation of the general provisions will pose no additional costs on them. Local governments have no role in implementing these standards and, therefore, should not incur any additional costs.

Existing Department resources will be sufficient to receive notifications from affected sources and file the notifications. All other requirements are already part of the existing operation permit program or will be considered in subsequent rule proposals that would establish new state standards and trigger the application of the monitoring, recordkeeping and reporting requirements of the proposed general provisions.

Fiscal Impact

None.

Notice of Proposed Rule

Revenue

Notice is hereby given that pursuant to s. 227.11 (2) (a), Stats., and interpreting ss. 77.51 (13) (a), (14) (intro.) and (k) and (20) and 77.52 (1) and (2) (a) 9, Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Department of Revenue will adopt the following rules as proposed in this notice without public hearing unless, within 30 days after publication of this notice on June 1, 1996, it is petitioned for a public hearing by 25 natural persons who will be affected by the rule, a municipality which will be affected by the rule, or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.

Contact Person

Please contact Mark Wipperfurth at [phone], if you have any questions regarding this proposed rule order.

Analysis by the Department of Revenue

Statutory authority: s. 227.11 (2) (a)

Statutes interpreted: ss. 77.51 (13) (a), (14) (intro.) and (k) and (20) and 77.52 (1) and (2) (a) 9

SECTION 1. Tax 11.69 (title), relating to financial institutions, is amended to add statute references that are interpreted in this section but were not previously mentioned.

SECTION 2. Tax 11.69 (1), (2) (title), (intro.), (a), (b), (c), (d), (e), (f) and (g) and (3) (title) and (c), relating to exempt and taxable sales and purchases by financial institutions, are renumbered s. Tax 11.69 (2), (3) (title), (intro.), (b), (d), (c), (e), (h), (f) and (a) and (4) (title) and (d), and s. Tax 11.69 (2) and (4) (d), as renumbered, are amended, per Legislative Council Rules Clearinghouse standards.

Tax 11.69 (2) (h), relating to sales of personalized imprinted checks, is renumbered s. Tax 11.69 (3) (g) and amended to:

  a. Reflect Legislative Council Rules Clearinghouse standards.

  b. Reflect the Department's position that a financial institution will not be considered the retailer of checks where the check printer sets the price for the checks, provides the order forms for the checks and invoices or bills the customer for the checks, even though the financial institution collects the order from the customer, charges the customer's account on behalf of the check printer and remits the amount charged to the account to the check printer.

Tax 11.69 (3) (a) and (b), relating to purchases by financial institutions, are renumbered s. Tax 11.69 (4) (a) and (b) and amended to:

  a. Reflect Legislative Council Rules Clearinghouse standards.

  b. Reflect the Department's position that a financial institution may not purchase for resale items it will give to customers without charge. Items sold for an amount below cost may be purchased without tax because they are resold.

Tax 11.69 (4), relating to the definition of financial institution, is renumbered s. Tax 11.69 (1) and amended to add savings banks to the definition and to reflect Legislative Council Rules Clearinghouse standards.

SECTION 3. Tax 11.69 (4) (c), relating to purchases for resale, is created to address purchases for resale. This was previously addressed in Tax 11.69 (3) (b), prior to its renumbering and amending.

SECTION 4. Tax 11.69 (5) (a), relating to sales to certain financial institutions, is amended to clarify that sales for resale are not taxable, and to include savings banks in the listing of financial institutions.

Text of Rule

SECTION 1. Tax 11.69 (title) is amended to read:

Tax 11.69 Financial institutions. (ss. 77.51 (13) (a), (14) (intro.) and (k) and (20) and 77.52 (1) and (2) (a) 9, Stats.)

SECTION 2. Tax 11.69 (1), (2) (title), (intro.), (a), (b), (c), (d), (e), (f), (g) and (h), (3) (title), (a), (b) and (c) and (4) are renumbered s. Tax 11.69 (2), (3) (title), (intro.), (b), (d), (c), (e), (h), (f), (a) and (g), (4) (title), (a), (b) and (d) and (l), and, as renumbered, s. Tax 11.69 (1), (2), (3) (g) and (4) (a), (b) and (d) are amended to read:

Tax 11.69 (1) DEFINITION. In this rule section, “financial institution” includes a bank, savings and loan association and, savings bank or credit union.

(2) EXEMPT SALES. Financial institutions are primarily engaged in providing nontaxable services. Such Those services include charges to customers for cashier's checks, money orders, traveler's checks, checking accounts and the use of safe deposit boxes.

(3) (g) Personalized imprinted checks, except where the financial institution has paid the tax on its purchases of such checks from a retailer and the financial institution resells the checks to customers at the same price or a price lower than its purchase price check printer is the retailer of the checks to customers. A check printer is the retailer of checks where it sets the price for the checks, provides the order forms for the checks and invoices or bills the customer for the checks, even though the financial institution collects the order from the customer, charges the customer's account on behalf of the check printer and remits the amount due from the account to the check printer.

(4) (a) A financial institution's purchases subject to sales or use tax include office furniture and equipment (, such as desks, chairs, couches, writing tables and offices machines), safe deposit boxes, drive-up and walk-up windows, night depository equipment, vault doors, remote TV auto teller systems and camera security equipment.

(b) Any tangible personal property purchased by a financial institution to be given away or sold at cost or less than cost to a customer, whether or not based upon the amount of a deposit, is taxable at the time it is purchased. This property includes calendars, playing cards, plat books, maps and any other items transferred to customers to promote business. Checking account and savings account forms provided to customers free of charge are also subject to the tax. When such items are sold by a financial institution at a price in excess of cost, the financial institution is a retailer and shall report the sales tax on such sales. The financial institution may purchase such property without tax by giving its supplier a properly completed resale certificate when acting as a retailer.

(d) If a financial institution is not required to have a seller's permit and has a use tax obligation because purchases are made without tax, it shall apply for a consumers' use tax registration certificate and report the tax on such the purchases.

SECTION 3. Tax 11.69 (4) (c) is created to read:

Tax 11.69 (4) (c) Purchases of tangible personal property that the financial institution will resell, rather than give away, may be purchased without tax by giving its supplier a properly completed resale certificate.

SECTION 4. Tax 11.69 (5) (a) is amended to read:

Tax 11.69 (5) (a) Sales to state chartered credit unions, and to federal and state chartered banks and, savings and loan associations and savings banks are taxable, unless resold by the credit union, bank, savings and loan association or savings bank.

Initial Regulatory Flexibility Analysis

The proposed rule order does not have a significant economic impact on a substantial number of small businesses.

Fiscal Estimate

The rule order updates the Department of Revenue's administrative code with respect to the sales and use tax treatment of sales and purchases by financial institutions. The rule reflects the Department's current position regarding services provided by financial institutions, clarifies existing language, and makes changes in style and format to conform with Legislative Council Rules Clearinghouse standards. These changes do not have a fiscal effect.