Rule-Making Notices (Hearing Notices)

1. Housekeeping — Corrections of grammar, sentence structure, definitions of terms used in the existing ch. NR 51 but not previously defined, and gathering of requirements from throughout ch. NR 51 into one location when those requirements apply to all categories of Stewardship grants.

2. Changes resulting from reauthorization of the Knowles-Nelson Stewardship Program in 2007 Wis. Act 20 — Adds public access requirements by reference to ch. NR 52, Wis. Adm. Code. Adds new signage requirements. Adds three new subchapters, as follows:

•Grants to Counties for County Forests (s. 23.0953 (2) (a) 1., Wis. Stats.)

•Grants to Counties when the DNR asks for Assistance (s. 23.0953(2) (a) 2., Wis. Stats.)

•Recreational Boating Facility grants (s. 23.0917 (2) (a) 3m., Wis. Stats.)

•Allows grant awards for up to 75% of total project costs to nonprofit conservation organizations that meet certain criteria (s. 23.096 (2m), Wis. Stats.)

3. Incorporation of Existing Grant Practices – Many of these practices have evolved and been used since ch. NR 51 was last promulgated in 2001. Some changes in this category represent changes in policy.

Policy issues that are addressed in the proposed rule include:

1. Change the amount of grant funds typically advanced to Friends Groups to avoid problems with repayment to the DNR and to comply with the IRS Code. In general, 50% will be advanced; higher amounts can be advanced under certain conditions. To address Friends Group cash flow in 50% advance circumstances, Friends Groups may also request partial reimbursements once the grant agreement has been signed. Increasingly, grant close out has been slow and documentation inadequate to justify entire advance. When a 100% advance is provided and all funds are expended, there may be no funds available to repay the state for undocumented expenditures. In addition, the IRS Code restricts what can be done with the proceeds from the sale of tax-exempt bonds. The State agrees to prohibit bond proceeds from being invested at a higher yield than those paid by the bond; this means Friends Group should not place grant advances in an interest-bearing account. Failure to comply with this IRS conditions can, and has recently, resulted in monetary penalties against the violator and puts the State's bond rating at risk. The practical result is that advances to Friends Groups must generally be more limited. Our solution is lesser advances but access to partial reimbursement.

2. Clarify that grants provided for development projects must encumber the grant property in perpetuity. By practice over the last decade, the DNR has required that properties are encumbered under the Stewardship program even if the DNR has only provided a Stewardship grant for a development project. This change to ch. NR 51 codifies past practices. To formalize the process, grant contracts will be recorded on the property deed.

3. Make “playgrounds" a grant-eligible support facility for nature-based outdoor recreation. Getting children into the outdoors and beginning an appreciation of nature often begins with playground equipment in parks. The statutes allow the DNR to add to the definition of nature-based outdoor recreation by rule. Local governments have requested this addition to the definition of nature-based outdoor recreation. The DNR feels playgrounds should be considered on a case-by-case basis so long as the playground is supplemental to the primary purpose of the grant.

4. Further defines criteria for nonprofit conservation organizations to be eligible to apply for a Stewardship grant.

5. Removes the requirement that the DNR “shall" provide a Stewardship grant for Natural Area projects if funds are available. This change acknowledges that project approval is also contingent upon approval of the Natural Resources Board and Joint Finance Committee, where appropriate.

6. Increases the required lease length on developed properties not owned by the sponsor from 20 to 25 years. This change provides increased protection for properties where Stewardship grant funds are used.

7. Simplifies the formula for determining how long nonprofit conservation organizations have to use “residual credits". Residual credit is the term used to describe any remaining value of a donated property where that property had earlier been used to match a Stewardship project. Project sponsors will have 36 months to use residual credit from the date that the first grant contract is issued to use residual credit. In addition, residual credit cannot be transferred among nonprofit conservation organizations and can only be used as match to projects within the same Stewardship grant subprogram.

8. Requires that a comprehensive outdoor recreation plan (CORP) be adopted by the time of a Stewardship grant application rather than the CORP being “under development" at the time of grant application. The DNR has experienced several instances where local government projects scored well enough to rank high enough to receive grant funding, but the project is delayed more than one year because the CORP took so long to be adopted. Funds reserved for local governments in these cases could have been awarded to the next highest-ranked project that was ready to proceed. Requiring that CORP be adopted by the time of a grant application ensured that Stewardship grant funds are used in a timely manner.

9. The proposed rule requires Natural Resources Board review for grant awards of $500,000 or more.

10. Other issues identified through public outreach and comment during the rule making process.

Related statutes or rules

General guidelines for department land acquisition are located in ch. NR 1, Wis. Adm. Code. The Department recently promulgated ch. NR 52, Wis. Adm. Code, relating to public access for nature based outdoor activities on both department and non-department lands that are acquired in whole or in part with funding from the Stewardship Program.

Comparison with rules in adjacent states

Minnesota, Michigan, Iowa and Illinois all have land acquisition programs that allow for the purchase of land, either in fee or as easements. Many of these programs are similar to the Stewardship program.

Minnesota: The Natural and Scenic Areas Grant Program was created to increase, enhance and protect Minnesota's natural and scenic areas. The program provides $500,000 in matching grants each year for fee simple purchases and conservation easements of environmentally important lands. http://www.dnr.state.mn.us/grants/landlnaturaLscenic.html

Michigan: The Michigan Natural Resources Trust provides approximately $35 million in financial assistance each year to local governments and the Michigan DNR to purchase land or rights in land for public recreation or for environmental protection or scenic beauty. It also provides financial assistance for the development of land for public outdoor recreation. http://www.michigan.gov/dnr/O.1607.7-153-10366_37984_37985-124961--.OO.html

Iowa: Iowa has two programs of interest:

1. The Resource Enhancement and Protection grant program in Iowa was created to enhance and protect Iowa's natural and cultural resources. This program provides up to $20 million annually to acquire land for recreational purposes. http://www.iowadnr.gov/reap/index.html

2. The Wildlife Habitat Promotion with Local Entities provides funding to county conservation boards for the acquisition and development of wildlife habitat. http://www.iowadnr.gov/grants/wildlife.html

Illinois: The Open Space Lands Acquisition and Development Program in Illinois provides approximately $20 million in assistance annually to local government agencies for acquisition and development of land for public parks and open space. http://www.dnr.state.il.us/ocd/newosladl.htm

Comparison with federal regulations

The Land and Water Conservation Fund (LWCF) is a federal grant program administered by the U.S. National Park Service. This program provides funding to states for the acquisition of land and the development of facilities for public outdoor recreation. Use of LWCF funds is directed by the Statewide Comprehensive Outdoor Recreation Plan that identifies general trends in outdoor recreation and identifies broad regional and statewide needs for land acquisition and recreational facility development.

The US Fish and Wildlife Service administers several programs that provide funding to the Department for land acquisition and facility development. Most of these funds are targeted to a specific purpose, such as the protection of habitat for endangered species, coastal areas and wetlands. In addition, the Department receives Federal funding for motor boat access acquisition and development, for wildlife habitat protection and management, and for fisheries habitat protection and development. Land acquired with funds from the U.S. Fish and Wildlife Service must generally be open to the public. There are some limited restrictions on the types of activities that are allowed to occur on these federally funded properties.

Summary of factual data and analytical methodologies

2007 Wis. Act 20 included reauthorization of the Knowles-Nelson Stewardship Program for another 10 years with annual appropriations of $86 million. The Stewardship Program is the primary funding source for land acquisition for conservation and public outdoor recreation in Wisconsin. Reauthorization included a provision requiring that lands purchased in whole or in part with funds from the Stewardship Program under ss. 23.0915 and 23.0917, Stats., be open for nature-based outdoor activities (hunting, fishing, trapping, hiking, and cross country skiing) unless the Natural Resources Board determines it is necessary to prohibit one or more of the nature-based outdoor activities to protect public safety, protect unique plant and animal communities, or to accommodate usership patterns.

2007 Wis. Act 20 also added two new grant subprograms and required that the recreational boating facilities grant program now be funded under the Stewardship Program.

In addition to noting needed rule revisions in the 10 years since ch. NR 51 was last revised, Department staff have worked with the Stewardship Advisory Committee (SAC) on proposed revisions to this rule. The SAC is appointed by the DNR Secretary. A complete listing of SAC members can be found at http://dnr.wi.gov/org/caer/cfa/Grants/Agendas- Minutes/StewMembers.pdf.

Department staff also collected comments while working with the WI County Forest Administrators and the WI Waterways Commission.

Anticipated private sector costs

These rules, and the legislation which grants the department rule making authority, do not have a significant fiscal effect on the private sector. Additionally, no significant costs are associated with compliance to these rules.

Small Business Impact

Pursuant to section 227.114, Stats., it is not anticipated that the proposed rules will have a significant economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at [e-mail] or by calling [phone].

Environmental Impact

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 Chapter 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.

Fiscal Estimate

State

No State Fiscal Effect

Local

No Local Government Costs

Assumptions used in arriving at fiscal estimate

2007 Wis. Act 20 included reauthorization of the Knowles-Nelson Stewardship Program until 2020 with annual appropriations of $86 million. Standards and criteria for grants issued to local units of government, non-profit conservation organizations, and Friends groups under the Stewardship Program are outlined in Chapter NR 51.

This proposed rule revision accomplishes several tasks:

1) NR 51 has not been updated since 1999. The proposed rule makes numerous “housekeeping" changes, provides administrative clarifications, provides several new definitions, and outlines administrative policy decisions that have been implemented since NR 51 was last updated.

2) 2007 Wis. Act 20 also added two new grant programs, and required that the recreational boating facilities grant program be funded under the Stewardship program. Three new subchapters have been added to Chapter NR 51 to be in compliance with these requirements. These new subchapters address grants for county forests (as outlined in s. 23.0953 (2)(a)1., Stats), grants to counties when the DNR asks for assistance (as outlined in s. 23.0953 (2)(a)2., Stats), and recreational boating facilities grants (as required under 23.0917 (2)(a)3m).

3) 2007 Wis. Act 20 also required that lands purchased with funds from the Stewardship Program under ss. 23.0915 and 23.0917, Stats., be open to hunting, trapping, hiking, fishing and cross country skiing unless the Natural Resources Board determines it is necessary to prohibit one or more of the nature-based activities to protect public safety, protect unique plant and animal communities, or to accommodate usership patterns. Provisions have been added to Chapter NR 51 to be in compliance with this requirement, and with the proposed Chapter NR 52.

None of the proposed changes have a fiscal impact.

Agency Contact Person

Amy Bradley, 101 South Webster St., PO BOX 7921, Madison, WI 53707-7921, [phone], [e-mail]

Notice of Hearing

Public Service Commission

rulemaking_notices CR 10-124 CR 10-124

(PSC # 1-AC-214)

NOTICE IS GIVEN that pursuant to section 227.16(2)(b), Stats., the commission will hold a public hearing on proposed rule changes to Chapter PSC 135, Wis. Admin. Code, relating to natural gas pipeline safety, including updates to the state additions to the pipeline safety code.

Hearing Information

Date and Time:	Location:
December 7, 2010 Tuesday 1:00 pm	Public Service Commission Amnicon Falls Hearing Room 610 North Whitney Way Madison, WI 53705

This building is accessible to people in wheelchairs through the Whitney Way (lobby) entrance. Handicapped parking is available on the south side of the building.

The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding, or who needs to receive this document in a different format should contact the docket coordinator, as indicated in the previous paragraph, as soon as possible.

Hearing- or speech-impaired individuals may use the commission's TTY number: If calling from Wisconsin, use [phone]; if calling from outside Wisconsin, use [phone].

Submission of Written Comments

Comments Due:	Address to:
December 21, 2010 Tuesday NOON	Sandra J. Paske, Secretary to the Commission Public Service Commission of Wisconsin P.O. Box 7854 Madison, WI 53707-7854
FAX Due:
December 20, 2010 Monday NOON	Fax: [phone]

Any person may submit written comments on these proposed rules. The hearing record will be open for written comments from the public, effective immediately, and until Tuesday, December 21, 2010, at noon (Monday, December 20, 2010, at noon, if filed by fax). All written comments must include a reference on the filing to docket 1-AC-214. File by one mode only.

Industry:

File comments using the Electronic Regulatory Filing (ERF) system. This may be accessed from the commission's website, at www.psc.wi.gov.

Members of the Public:

If filing electronically: Use the Public Comments system or the Electronic Regulatory Filing system. Both of these systems may be accessed from the commission's website, at www.psc.wi.gov.

If filing by mail, courier, or hand delivery: Address as shown in the box on page 1.

If filing by fax: Send fax comments to [phone]. The fax filing cover sheet MUST state “Official Filing," the docket number 1-AC-214, and the number of pages (limited to 25 pages for fax comments).

Copies of Proposed Rule

A copy of the Notice of Hearing including the text of the proposed rule can be obtained by going to the PSC's electronic regulatory filing (ERF) system. This can be accessed through the PSC's website at psc.wi.us. Once in the ERF system click on "Search ERF," then enter the docket number 1-AC-214 and the docket type "Notice". The Notice and text of the proposed rule can also be obtained by contacting Joyce Dingman at [e-mail] or 608-267-6919.

Analysis Prepared By the Public Service Commission Of Wisconsin

Statutory authority and explanation of authority

This rule is authorized under sections 196.02 (1) and (3), 196.745 (1) (a), and 227.11.

Section 227.11 authorizes agencies to promulgate administrative rules. Section 196.02 (1) authorizes the Commission to do all things necessary and convenient to its jurisdiction. Section 196.02 (3) grants the Commission specific authority to promulgate rules. Section 196.745 (1) (a) grants the Commission specific authority to adopt rules requiring that the construction and operation of gas facilities be done in a reasonably adequate and safe manner.

Statute interpreted

This rule interprets section 196.745, Stats., and, under a contract with the U.S. Department of Transportation, Office of Pipeline Safety, the federal pipeline safety regulations (49 CFR 190 to 199).

Related statutes or rules

The federal pipeline safety statutes may be found in 49 USC 60101 to 60133. The federal pipeline safety regulations may be found in 49 CFR 190 to 199. Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission enforces the federal pipeline safety regulations for Wisconsin's natural gas pipeline operators, primarily public utilities. Under this agreement, the commission has the authority to make additions to the federal code that are more stringent than the federal standards.

Chapter PSC 134 is the rule that deals with gas service standards. That rule also has some requirements concerning safe interactions between pipeline operators and their customers.

Summary and analysis of the rule

The rulemaking in this docket relates to adoption of the federal natural gas pipeline safety code and includes updates to the state additions to the pipeline safety code.

Under an agreement with the U.S. Department of Transportation, Office of Pipeline Safety, the commission enforces the federal pipeline safety regulations for Wisconsin's natural gas pipeline operators, primarily public utilities. Under this agreement, the commission has the authority to make additions to the federal code that are more stringent than the federal standards. The commission in the past has made a number of state additions to the federal code.

Although the commission regularly adopts the federal code revisions, it has been 14 years since a comprehensive review of the state additions to the natural gas pipeline safety regulations has been conducted. Since that time there have been many changes in the gas industry across the country and in Wisconsin.

This rulemaking also incorporates by reference all of the federal code, including changes made since July 1, 2007.