The Wisconsin Division of Emergency Management (WEM)/State Emergency Response Commission finds that an emergency exists and that a rule revision is necessary for the immediate preservation of the public peace, health, safety or welfare. A statement of facts constituting an emergency is as follows:
Emergency response to and planning for accidental or purposeful releases of dangerous chemicals will be compromised by a significant reduction of money available to fund emergency management activities at the county level. County emergency management agencies will be unable to fully comply with state and federal laws. Wisconsin Emergency Management would also experience substantial reductions in capabilities to assist local units of government with their state and federally required responsibilities. Sufficient funding of the county grant program and WEM activities is necessary to protect and defend the citizens of Wisconsin from accidental releases and releases caused by terrorist actions.
Analysis Prepared by Wisconsin Emergency Management
Statutes interpreted
Sections
166.20 generally, 166.20 (5), 166.20 (7), and 166.21, Stats.
Statutory authority
Sections
166.20 generally, 166.20 (5), and 166.20 (7), Stats.
Plain language summary
The proposal to amend WEM 1.03 and WEM 1.04 (7) (a) through (j) would establish fee revisions to facilities housing hazardous chemicals, hazardous substances and extremely hazardous substances as defined in WEM 1.02 (5).
Facilities and certain small businesses which have 10 or more full-time employees and store hazardous materials, hazardous substances and extremely hazardous substances are assessed a fee based on the types and numbers of chemicals present. Fees have not increased since the initial implementation of the fee structure in 1990.
Wisconsin Emergency Management has been successful in stretching dwindle dollars over the years but projections indicate that a change in fees is necessary to avoid substantial reductions of services at the county and state levels of emergency management.
The fees collected fund the grant program which assists county emergency management with planning, response, exercising and training activities as they relate to accidental or purposeful release of hazardous materials, hazardous substances or extremely hazardous substances.
The fees collected fund planning, response, exercise and training activities by the state which supports county emergency management activities.
The changes in this emergency rule will fund the program at the present level for one year to ensure that citizens are protected from the affects of accidental or purposeful release of chemicals at the present level. The permanent rule is being drafted.
SECTION 1. WEM 1.03 is amended to read:
WEM 1.03 An owner or operator who has made an emergency planning notification required under 166.20 (5) (a) 1., Stats., shall submit a fee of $800 per facility no later than 2 months after February 1, 1990. Except as provided under as provided under s.
WEM 1.06, an owner or operator shall submit a fee of $
800945 per facility with the emergency planning notification required under s.
166.20 (5) (a) 1., Stats. The planning notification fee statement shall be submitted one time to the division.
SECTION 2. WEM 1.04 (7) (a) through (j) is amended to read:
(7) Except as provided under s.
WEM 1.07, the appropriate inventory form fee required under this section is:
(a) For facilities submitting an inventory form listing one hazardous chemical subject to inventory form fee calculations and a maximum daily amount of less than 100,000 pounds, $150180. Facilities with an actual maximum daily amount of 100,000 or more, $180210
(b) For facilities submitting an inventory form listing 2 to 10 hazardous chemicals subject to inventory form fee calculations and a cumulative actual maximum daily amount of less than 100,000 pounds, $300355. Facilities with an actual maximum daily amount of 100,000 or more, $360
425.
(c) For facilities submitting an inventory form listing 11 to 100 hazardous chemicals subject to inventory form fee calculations and a cumulative actual maximum daily amount of less than 100,000 pounds, $450530. Facilities with a cumulative actual maximum daily amount of 100,000 pounds or more, $540635.
(d) For facilities submitting an inventory form listing 101 to 200 hazardous chemicals subject to inventory form fee calculations and a cumulative actual maximum daily amount of less than 100,000 pounds, $550650. Facilities with a cumulative actual maximum daily amount of 100,000 pounds or more, $660780.
(e) For facilities submitting an inventory form listing 201 to 300 hazardous chemicals subject to inventory form fee calculations and a cumulative actual maximum daily amount of less than 100,000 pounds, $650765. Facilities with a cumulative actual maximum daily amount of 100,000 pounds or more, $780920.
(f)
For facilities submitting an inventory form listing 301 to 400 hazardous chemicals subject to inventory form fee calculations and a cumulative actual maximum daily amount of less than 100,000 pounds, $750885. Facilities with a cumulative actual maximum daily amount of 100,000 pounds or more, $9001060.
(g) For facilities submitting an inventory form listing 401 to 500 hazardous chemicals subject to inventory form fee calculations and a cumulative actual maximum daily amount of less than 100,000 pounds, $8501005 Facilities with a cumulative actual maximum daily amount of 100,000 pounds or more, $10201205.
(h) For facilities submitting an inventory form listing over 500 hazardous chemicals subject to inventory form fee calculations and a cumulative actual maximum daily amount of less than 100,000 pounds, $9501120. Facilities with a cumulative actual maximum daily amount of 100,000 pounds or more, $11401345.
(i) For temporary construction facilities, $2024.
(j) For batch plants, $2024.
Note: Facilities that have submitted Tier II and Inventory Fee Statements in 2008 for chemicals in 2007 will receive preprinted forms in the mail on or about January 1, 2009. These forms can also be obtained through the Wisconsin Emergency Management website at
emergency management@wisconsin.gov or call 608-242-3221.
The Wisconsin Division of Emergency Management proposes an order to amend WEM 1.03 and WEM 1.04 relating to fees.
Analysis Prepared by Wisconsin Emergency Management
Statutes interpreted
Sections
166.20 generally, 166.20 (5), 166.20 (7), and 166.21 Stats.
Statutory authority
Sections
166.20 generally, 166.20(5), and 166.20(7) Stats.
Explanation of agency authority
The Department of Military Affairs, through its Division of Emergency Management (WEM)/State Emergency Response Commission, is required under s.
166.20 (7), Stats. to promulgate and adopt rules establishing a one-time fee when a facility makes the planning notification requirement under s.
166.20 (7) (a) 1. The Division of Emergency Management is also required under s.
166.20 (7) to promulgate and adopt rules establishing an annual inventory fee when a facility submits the emergency and hazardous chemical inventory forms required under s.
166.20 (5) (a) (3).
Related rule or statute
There are no other related statutes or rules other than those listed above.
Plain language analysis
The proposal to amend WEM 1.03 and WEM 1.04 (7) (a) through (j) would establish fee revisions to facilities housing hazardous chemicals and extremely hazardous substances as defined in WEM 1.02 (5).
The federal government created and adopted the Emergency Planning and Community Right-to-Know Act (EPCRA) 22 years ago and required states to participate with emergency planning, response, exercising and training. Since Wisconsin is a home rule state, the responsibility to plan for chemical emergencies falls to local units of government/Local Emergency Planning Committees (LEPCs). To alleviate the burden of another unfunded mandate to local government, the legislature implemented a fee collection program to facilities which store hazardous materials and extremely hazardous substances. WEM was instructed by the legislation to implement a fee structure in order to fund the program. The current fee structure was implemented in 1990 and has not been modified since its inception. The fees collected are designated to fund the grant program to counties/LEPCs and a small portion is designated to WEM to fund programs designed to assist local units of government.
Emergency planning needs have evolved and become more complex since the initial implementation of EPCRA. Planning for and emergency response to accidental and purposeful releases of dangerous chemicals will be compromised by a significant reduction of money available to fund activities at the county level of emergency management. County emergency management agencies will be unable to protect citizens and to fully comply with state and federal laws if adequate funds are not available to counties to support the grant program. Wisconsin Emergency Management would also experience substantial reductions in capabilities to assist local units of government.
Facilities and certain small businesses which have 10 or more full-time employees and submit emergency planning notification when the threshold planning quantity of an extremely hazardous substance is present must submit a one-time fee. Facilities and certain small businesses which have 10 or more full-time employees and store hazardous chemicals must submit an annual fee based on the types and numbers of chemicals present.
Wisconsin Emergency Management (WEM) has been successful in stretching dwindle dollars over the years but projections indicate that a change in fees is necessary to avoid substantial reductions of services at county and state levels of emergency management.
The fees assessed to facilities would increase by 35%. Fees have not increased since the initial implementation of the fee structure in 1990. It is anticipated that the fee revision will fund the program for through the year 2014
Comparison with rules in adjacent states
Illinois:
Does not have a fee assessed to facilities.
Iowa:
Does not have a fee assessed to facilities.
Michigan:
Does not have a fee assessed to facilities.
Minnesota:
The EPCRA Program collects fees related to hazardous materials storage and release. The fees are used to prepare communities for emergencies that are the result of hazardous materials incidents/accidents.
A. The hazardous Chemical Inventory Fee
1. Facilities reporting the storage of hazardous materials under Section 312 of the federal EPCRA law are required to pay a fee based on the number of chemicals they store. Fees range from $25.00 to $1,000.00 within 3 categorical fee ranges.
B.
The Hazardous Materials Incident Response Act Fee
1.
Minnesota law authorizes the establishment of up to five Regional Hazardous Materials Response Teams and creates fee structure to support these teams.
a. Facilities that report the storage of an extremely hazardous substance (EHS) under Section 302 of the federal EPCRA law are required to pay a fixed annual fee of $75.00 per facility
b. Facilities that report releases and/or transfers under Section 313 of the federal EPCRA law are required to pay an annual fee based on the amount released and transferred. These fees range from $200.00 to $800.00 in 3 categorical fee ranges.
Summary of factual data and analytical methodologies
WEM performed numerous fiscal analogies to determine the best course of action to keep the county grant program and state services to counties operating at a level consistent with changing and diverse needs. Several options were developed to cope with the fact that the fund would be depleted if changes were not implemented:
•
Increase EPCRA fees at a specified percentage. This would fund the program to meet local and state needs.
•
Increase the Petroleum Environmental Cleanup Fund Act (PECFA) transfer to the EPCRA fund. Additional funding, such as the state disaster fund has been taken out of PECFA, and currently the fund may not have sufficient money.
•
Increase the EPCRA fees and the PECFA transfer. This would have the benefit of reducing the overall increase in EPCRA fees and the PECFA transfer. However, if the PECFA fund does not have a surplus, then it would not be a viable option.
•
Obtain additional funding from another source. At this time no other viable funding source has been identified.
After reviewing the options, it was determined that a 35% increase in facility reporting fees and the emergency planning fee was the appropriate option to increase funding in the grant allocation to counties and WEM expenditure levels to take into account increases to the cost of living. Operating costs for both the counties and state have been increasing with no increase to the allocation since 1990. This option will increase support at a level that should keep the fund solvent through 2014.
Small Business Impact
Facilities with 10 or more employees would experience a fee change. Under s.
166.20 (7) (d), Stats., facilities with fewer than the equivalent of 10 full-time employees are exempt from inventory fees and the one-time emergency planning fee.
Initial regulatory flexibility analysis
Types of small businesses that will be affected by the rule:
Reporting, bookkeeping and other procedures required for compliance with the rule:
No new reporting, bookkeeping and other procedures are required for compliance with the rule.
Types of professional skills
No new professional skills are necessary for compliance with the rule.
Rules have a significant impact on small business?
No. Most small businesses with 10 or more employees are now paying the minimum annual inventory fee of $150.00 and will see that increase by 35% annually. Small businesses with 10 or more employees who must submit the one-time planning notification will expect an increase in the fee of 35%.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The emergency rule will increase fees by eighteen percent for one year until the permanent rule goes into effect.
The increase will support local and state programs at the present rate.
State fiscal effect
Increase to existing revenues.
Increase to existing appropriation.
Local government fiscal effect
No local government costs.
