CR 10-061, DNR # DG-23-10
NR 850 — Water Use Fees
Plain language analysis
The proposal contained in this order repeals a provision of an existing rule that provided authority to assess water withdrawal fees on persons making withdrawals from the waters of the state in amounts averaging 100,000 gallons per day or more in any 30-day period. Those fees ranged from $35 to $500 dollars depending on the amount of the withdrawal. However, the fee program and the associated registration program associated with it were not implemented by the Department.
Under the provisions of s.
281.346 (12), as created in
2009 Wisconsin Act 28, beginning in 2011, any person with a water supply system anywhere in the state with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period must pay to the Department an annual fee of $125. This rule clarifies that the annual $125 fee will cover all water supply systems on one property or a single public water supply. Section
281.346 (12)(c) further directs the Department to promulgate a rule specifying an additional annual fee for persons who withdraw more than 50,000,000 gallons per year from the waters of the Great Lakes basin—that is, from surface water or groundwater within the land area of the state draining to Lakes Michigan or Superior, or from those lakes. The proposed fee would increase per 50 million gallon increment as shown in the following table:
Great Lakes Basin-Specific Fee for
Withdrawals > 50 MGY
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Amount Withdrawn
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Fee Per Million Gallons
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50 MGY to 100 MGY
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$1.50
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100 MGY to 150 MGY
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$2.00
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150 MGY to 200 MGY
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$2.50
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200 MGY to 250 MGY
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$3.00
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250 MGY to 300 MGY
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$3.50
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300 MGY to 350 MGY
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$4.00
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350 MGY to 400 MGY
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$4.50
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400 MGY to 450 MGY
|
$5.00
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450 MGY to 500 MGY
|
$5.50
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500 MGY +
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$6.00
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The fee would not exceed $9,500 annually for withdrawals from a water supply system on a contiguous property or a public water system. The fees specified in this rule will be assessed on a calendar year basis and will be due to the Department by June 30th of the following calendar year.
Comparison with federal regulations
There are no comparable federal regulations pertaining to fees for water withdrawals.
Comparison with rules in adjacent states
The following table compares water withdrawal fees in adjacent states.
Water Withdrawal Fee Comparison
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Wisconsin
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Illinois
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Iowa
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Michigan
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Minnesota
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$125 statutory fee—statewide — for water supply systems with the capacity to withdraw an average of 100,000 gallons-per-day or more in any 30-day period.
Proposed additional annual fee for Great Lakes Basin withdrawals exceeding 50 million gallons per year. The proposed fee would be assessed at an inclining rate in tiers of 50 million gallons as follows:
(50 – 100) $1.50/mil.
(100 – 150) $2/mil.
(150 – 200) $2.50/mil.
(200 – 250) $3/mil.
(250 – 300) $3.50/mil.
(300 – 350) $4 /mil.
(350 – 400) $4.50/mil.
(400 – 450) $5/mil.
(450 – 500) $5.50/mil.
(Above 500) $6/mil.
The fee would not exceed $9,500 annually for withdrawals from one property or public water system.
|
No annual water use fee.
|
Iowa charges an annual water use fee to each water use permittee designed to generate $500,000 each year. Permits are required for persons that withdraw at least 25,000 gallons in a 24-hour period during a calendar year; and the same fee is charged to each permittee.
For 2009, the annual fee was $135 for each permittee.
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$200 annual reporting fee for withdrawals exceeding 100,000 gallons per day averaged over a consecutive 30-day period. (No annual fee for withdrawals for agricultural use.)
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$140 minimum annual water use fee for withdrawals between 0 and 50 million
gallons.
Marginal fee rates for withdrawals exceeding 50 million gallons per year as follows:
(50 – 100) $3.50/mil.
(100 – 150) $4/mil.
(150 – 200) $4.50/mil.
(200 – 250) $5/mil.
(250 – 300) $5.50/mil.
(300 – 350) $6/mil.
(350 – 400) $6.50/mil.
(400 – 450) $7/mil.
(450 – 500) $7.50/mil.
(Above 500) $8/mil.
Maximum Annual water use fees:
$750 for any single agric. Irrigation permit;
$50,000 for an entity w/3 or fewer permits;
$75,000 for an entity w/4 to 5 permits;
$250,000 for an entity with > 5 permits;
$250,000 for a city of the first class;
$10,000 for a municipality that furnishes electric service and steam for home heating.
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Summary of factual data and analytical methodologies
Based on available data and assumptions, the Department projects that the $125 annual fee will apply to approximately 4900 properties and generate just over $600,000 annually; and the proposed fee on withdrawals exceeding 50 million gallons per year will apply to approximately 200 to 250 properties in the Great Lakes basin and generate approximately $390,000 annually.
Analysis and supporting documentation used to determine rule's effect on small business
The Department lacks complete data on the number and nature of all operations withdrawing water above the threshold amount of 50 million gallons per year. However, based on the withdrawal data that does exist (e.g. high capacity well pumpage data), comparatively few small businesses will be affected by the rule.
Small Business Impact
The $125 annual fee will affect hundreds of small business throughout the state. However, the fee imposed on withdrawals exceeding 50 million gallons per year is expected to primarily affect public water systems, power companies, and large industrial operations in water-intensive industries. The rule will affect an unknown number of small businesses that withdraw more than 50 million gallons of water per year from waters within the Great Lakes basin; however the Department estimates that there are relatively few small businesses that withdraw water at levels exceeding the threshold amounts.
Fiscal Estimate
Rule summary
Section
281.346 (12) (c), directs the Department to promulgate a rule specifying an additional annual fee for persons who withdraw more than 50 million gallons per year (MGY) from the waters of the Great Lakes basin—that is, from surface water or groundwater within the land area of the state draining to Lakes Michigan or Superior, or from those lakes. The proposed fee would be assessed on marginal increments of withdrawals over 50 million gallons per year starting @ $1.50 per million gallons over 50 million, and would increase $0.50 per million gallons for each 50 million gallon increment as follows:
•
For amounts withdrawn between 50 MGY to 100 MGY $1.50/million gallons withdrawn
•
For amounts withdrawn between 100 MGY to 150 MGY $2.00/million gallons withdrawn
•
For amounts withdrawn between 150 MGY to 200 MGY $2.50/million gallons withdrawn
•
For amounts withdrawn between 200 MGY to 250 MGY $3.00/million gallons withdrawn
•
For amounts withdrawn between 250 MGY to 300 MGY $3.50/million gallons withdrawn
•
For amounts withdrawn between 300 MGY to 350 MGY $4.00/million gallons withdrawn
•
For amounts withdrawn between 350 MGY to 400 MGY $4.50/million gallons withdrawn
•
For amounts withdrawn between 400 MGY to 450 MGY $5.00/million gallons withdrawn
•
For amounts withdrawn between 450 MGY to 500 MGY $5.50/million gallons withdrawn
•
For amounts withdrawn in excess of 500 MGY
$6.00/million gallons withdrawn
The fee would not exceed $9,500 annually for withdrawals from a water supply system on a contiguous property or a public water system. The fee would take effect in 2011. Fee revenue will be deposited in a program revenue appropriation supporting Great Lakes Compact implementation. The Department anticipates that between 200 and 300 persons will pay the fee annually.
State fiscal impact
Revenues that will be generated as a result of the annual withdrawal fee are the result of the fee provisions enacted in to law in
2009 Wisconsin Act 28. The Department assumes that the statutory statewide base fee of $125 on persons with water supply systems with the capacity to withdraw an average of 100,000 gallons per day or more in any 30-day period will be imposed on approximately 4900 persons and will generate approximately $612,500 annually. (Revenue from this base fee is not included on the attached fiscal estimate worksheet.)
Based on actual withdrawal data from public water supply systems and high capacity well owners, and assumptions related to surface water withdrawals, the Department expects that the fee will generate between $38000 and $400,000 annually. In addition, state-owned facilities (e.g., state fish hatcheries) that withdraw over 50 million gallons per year in the Great Lakes Basin would have to pay the fee. The Department lacks accurate data on total amounts of water withdrawn from state-owned facilities, therefore costs to the state are indeterminate at this time.
Local government fiscal impact
Based on 2009 data, there are approximately 180 public water systems in the Great Lakes Basin. Of those 180 systems, approximately 90 systems withdraw in excess of 50 million gallons per year and will be affected by this rule--e.g., systems withdrawing 100 million gallons of water per year will pay approximately $75 under the rule; systems withdrawing 1 billion gallons of water per year will pay approximately $4,600; and systems withdrawing 2.3 billion gallons of water per year will pay $9,500 per year. The Department anticipates that approximately 9 public water systems in the Great Lakes basin will pay the maximum $9,500 fee, 60 public water systems will pay a fee under $1,000, and more than 90 public water systems in the Great Lakes basin would pay no additional fee over the $125 statutory base fee.
Private sector fiscal impact
The Department lacks complete data on the number and nature of all operations withdrawing water above the threshold amount of 50 million gallons per year. However, based on the withdrawal data that does exist (e.g. high capacity well pumpage data), comparatively few small businesses will be affected by the rule.
Summary for state fiscal effect
Increase existing revenues.
Increase costs. May be possible to absorb within agency's budget.
Summary for local government fiscal effect
Increase costs — Mandatory.
Types of local government units affected
Towns, Villages, Cities, Counties, Water Utilities, School Districts, WTCS Districts.
Fund sources affected
PRO.
Affected Ch.
20 appropriations
Long-range fiscal implications
None are expected.
Agency Contact Person
Eric Ebersberger, Water Use Section
Room DG/5, Wis. Dept. of Natural Resources
Bureau of Drinking Water & Groundwater
Phone: (608) 266-9254
___________________________________________
CR 10-060, DNR # DG-24-10
NR 852 — Water Conservation and Water Use Efficiency
Plain language analysis
This board order creates a new rule that clarifies and further defines new statutory requirements for water conservation and water use efficiency for withdrawals of waters of the state within the Great Lakes Basin, diversions of water from the Great Lakes Basin, and water withdrawals statewide that require a water loss approval. The new law implements the following:
1.
Specifies mandatory water conservation and efficiency measures for waters of the Great Lakes Basin and withdrawals statewide that require a water loss approval.
2.
Promotes voluntary statewide water conservation through the identification of water conservation and efficiency measures.
3.
Guides other department regulatory, planning, resource management, liaison and financial aid determinations.
Persons subject to this chapter are categorized into one of 3 levels:
1.
Tier 1 includes new and increased withdrawals in the Great Lakes Basin that average 100,000 gallons per day or more in any 30-day period but that do not equal at least 1,000,000 gallons per day for any 30 consecutive days.
2.
Tier 2 includes new and increased withdrawals in the Great Lakes Basin that equal 1,000,000 gallons per day or more for any 30 consecutive days.
3.
Tier 3 includes new and increased diversions in a community or county that straddles the sub-continental divide and new and increased withdrawals statewide that will result in a water loss averaging more than 2,000,000 gallons per day in any 30-day period.
This tiered approach is being used to differentiate between the requirements for different types and levels of regulated activities. The level of water conservation and efficiency requirements are increased from Tier 1, to Tier 2, to Tier 3.
In addition to completing a Water Conservation Plan, there are four mandatory water conservation and efficiency measures (CEMs) for all persons for whom water conservation and efficiency requirements are mandatory under this chapter. These CEMs have been determined to be cost-effective, environmentally sound and economically feasible for all water use sectors. Implementation of additional CEMs are required for Tier 2 and Tier 3 only.
The rule sets forth definitions, sector specific water conservation and efficiency measures, elements of a water conservation plan, procedures for conducting an environmentally sound and economically feasible analysis, process for approval and reporting, and process for enforcement.
Comparison with federal regulations
There are no comparable federal regulations pertaining to water conservation and water use efficiency. However, in passing the Great Lakes – St. Lawrence River Basin Water Resources Compact (Compact), each of the Great Lakes states have similar requirements to establish a water conservation and efficiency program that is consistent with the goals and objectives identified by the Great Lakes Compact Council.
Summary of factual data and analytical methodologies
Published scientific literature, industry manuals, information from other states, consultation with the Department of Commerce and Public Service Commission, and input from an advisory committee were used as the basis for developing the water conservation plan requirements and required water conservation and efficiency measures.
Analysis and supporting documentation used to determine rule's effect on small business
Any person who diverts any amount of water, has a new or increased withdrawal averaging 100,000 gallons per day or more in any 30-day period from the Great Lakes Basin, or a withdrawal with a water loss over 2,000,000 gallons per day must complete a water conservation plan and implement water conservation and efficiency measures. To comply, small businesses follow the same requirements as other persons who withdraw water in the same quantity. The water conservation and water use efficiency requirements are clearly identified in this rule and do not include requirements to retrofit existing equipment. Water conservation and efficiency measures that are not environmentally sound or economically feasible do not need to be implemented.
Comparison with rules in adjacent states
The following table compares regulatory requirements for water conservation and efficiency in adjacent states:
Water Conservation and Water Use Efficiency Comparison
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Wisconsin
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Illinois
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Iowa
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Michigan
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Minnesota
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Specifies mandatory water conservation and water use efficiency measures within user sectors for certain levels of new or increased withdrawals and diversions from waters of the Great Lakes Basin and for water withdrawals statewide that require a water loss approval.
Promotes voluntary statewide water conservation through the identification of water conservation and efficiency measures.
|
Specifies all water withdrawals over 100,000 gallons per day in the Great Lakes Basin to obtain a permit. Conservation practices within the user category are specified through permitting process. Requires permittees to submit a plan to reduce wasteful water and unaccounted for water by 8 percent. Requires permittees to submit an annual water use audit form.
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Specifies all persons making a water
withdrawal of at
least 25,000 gallons per day to obtain a water use permit. Iowa statute provides for a water allocation (permit) system based on beneficial use preventing waste, unreasonable use
and unreasonable methods of use of water resources. Conservation is expected.
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Specifies all persons making large quantity withdrawals averaging 100,000 gallons a day for 30-days to evaluate generic water conservation measures applicable to their sector for review and acceptance by the Department of Environmental Quality. Requires legislative review of the status and preparation and acceptance of water user sector conservation measures by April 1, 2010.
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Specifies mandatory efficient use and conservation of water through permitting process for all water users withdrawing water at a rate of 10,000 gallons a day or a million gallons per year. Water conservation must be addressed in water supply plans required for public water systems serving more than 1000 people.
Requires mandatory conservation rate structures for all public water utilities located within the basin.
Specifies voluntary measures including information and education, retrofitting water fixtures and encouraging water reuse.
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Small Business Impact
This rule will affect small businesses located in the Great Lakes Basin that supply their own water with water supply systems that actually withdraw water averaging 100,000 gallons per day or more in any 30-day period or have a new or increased withdrawal statewide that will result in a water loss averaging more than 2,000,000 gallons per day in any 30-day period. Water conservation and efficiency measures that are not environmentally sound or economically feasible do not need to be implemented. Small businesses that receive water from a public water supply will not be impacted by this rule.
Fiscal Estimate
Water conservation and water use efficiency rule summary
This new rule clarifies and further defines new statutory requirements for water conservation and water use efficiency for withdrawals of waters of the state within the Great Lakes Basin, diversions of water from the Great Lakes Basin, and water withdrawals statewide that require a water loss approval. The new law implements the following:
•
Specifies mandatory water conservation and efficiency measures for waters of the Great Lakes Basin and withdrawals statewide that require a water loss approval (i.e. withdrawals resulting in a water loss averaging more than 2,000,000 gallons per day in any 30-day period).
•
Promotes voluntary statewide water conservation through the identification of water conservation and efficiency measures.
•
Guides other Department regulatory, planning, resource management, liaison and financial aid determinations.
Persons subject to this chapter are categorized into one of 3 tiers:
•
Tier 1 includes new and increased withdrawals in the Great Lakes Basin that average 100,000 gallons per day or more in any 30-day period but that do not equal at least 1,000,000 gallons per day for any 30 consecutive days.
•
Tier 2 includes new and increased withdrawals in the Great Lakes Basin that equal 1,000,000 gallons per day or more for any 30 consecutive days.
•
Tier 3 includes new and increased diversions in a community or county that straddles the sub-continental divide and new and increased withdrawals statewide that will result in a water loss averaging more than 2,000,000 gallons per day in any 30-day period.
