ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 547
January 30, 2018 - Offered by Representative Steineke.
AB547-ASA1,1,8 1An Act to repeal 281.36 (3r) (a) 4. and 281.36 (3s); to renumber and amend
223.321 (1) and 23.321 (5); to amend 20.370 (9) (bm), 23.0917 (4) (c) 3., 23.321
3(4) (a) 3., 281.36 (3b) (b), 281.36 (3m) (a), 281.36 (3n) (d) 1., 281.36 (3r) (a)
4(intro.), 281.36 (4) (title), 281.36 (6) (a) (intro.), 281.36 (9) (a) (intro.) and 281.36
5(13m); and to create 15.347 (22), 20.370 (9) (bn), 23.099, 23.321 (1) (am), 23.321
6(2) (d), 23.321 (4) (a) 4., 23.321 (5) (b), 281.12 (2), 281.36 (3r) (am), 281.36 (4n),
7281.36 (12m) and 281.37 of the statutes; relating to: the regulation and study
8of wetlands; grants for wetland projects; and making an appropriation.
This substitute amendment exempts artificial wetlands and certain nonfederal
wetlands from Department of Natural Resources wetland permitting requirements;
changes some requirements relating to wetland boundary delineations; creates
wetland-related grant programs; and, if the Environmental Protection Agency
delegates to the state the authority to administer its own permit program for the
discharge of dredge or fill material into navigable waters, authorizes DNR to assume
that authority.
Nonfederal wetlands. Under current federal law, generally, a person must
obtain a permit from the federal government for discharges to wetlands that are

under the jurisdiction of the federal government. Generally speaking, only wetlands
that are adjacent to navigable waters are subject to federal jurisdiction. Federal law
requires an applicant to submit with a permit application a certification from the
state that the proposed discharge will comply with state water quality standards or
that the state has waived such certification. In this state, DNR grants this
certification by issuing a state wetland permit. Under current law, DNR must issue
wetland general permits for discharges of dredged or fill material into certain
wetlands and may require a person to apply for and obtain a wetland individual
permit if DNR determines that conditions specific to the site require additional
restrictions on the discharge in order to provide reasonable assurance that no
significant adverse impacts to wetland functional values will occur. Under current
law, before DNR may issue a wetland individual permit, it must require the
restoration, enhancement, creation, or preservation of other wetlands to compensate
for adverse impacts to a wetland resulting from the discharge, also known as
mitigation.
This substitute amendment exempts from wetland permitting requirements a
discharge into a wetland that is not subject to federal jurisdiction (nonfederal
wetland) that occurs in an urban area if it does not affect more than one acre of
wetland per parcel, it does not affect a rare and high quality wetland, and if the
development related to the discharge is carried out in compliance with any applicable
storm water management zoning ordinance or storm water discharge permit. Under
the substitute amendment, an urban area is an incorporated area, an area within one
mile of an incorporated area, or an area that is served by a sewerage system or is in
a town sanitary district. The substitute amendment defines a “rare and high quality
wetland” as one that is directly adjacent and contiguous to a class I or class II trout
stream or that consists of at least 75 percent of certain rare wetland types.
The substitute amendment also exempts from wetland permitting
requirements a discharge into a nonfederal wetland that occurs outside an urban
area if it does not affect more than three acres of wetland per parcel, it does not affect
a rare and high quality wetland, and if the development related to the discharge is
a structure with an agricultural purpose. If the discharge into these wetlands affects
more than 1.5 acres, the substitute amendment requires the mitigation of impacts
from the discharge to the portion that exceeds 1.5 acres. For any discharge to one
of these wetlands that requires mitigation, the substitute amendment requires the
mitigation to be conducted in the same compensation search area as the discharge.
Under current DNR administrative rule, a compensation search area is an area that
includes the statewide management unit of the impacted wetland, the county of the
impacted wetland, and a circle with a 20-mile radius from the impacted wetland.
DNR has defined 22 statewide management units based on the major river basins
of the state.
Under current law, upon request and for a fee, DNR may provide to a landowner
or tenant either a wetland identification that consists of a written evaluation, based
upon an on-site inspection of the land by DNR, of whether a parcel of land contains
a wetland, or a wetland confirmation that consists of a written statement, based
upon an on-site inspection of the land by DNR, of whether DNR concurs with the

boundaries of a wetland as delineated by a third person. Under current law, DNR
must provide either service within 60 days of receiving a request, and a wetland
identification or confirmation remains effective for five years.
The substitute amendment adds another type of wetland confirmation that
consists of a written statement, based upon DNR's review of the boundaries of a
wetland as delineated by a qualified third person and not based upon an on-site
inspection of the land by DNR, of whether DNR concurs with the delineation and
requires DNR to provide this service within 15 days of receiving a request. Under
the substitute amendment, a “qualified third person” is an individual who has
completed basic and advanced wetland training and has a minimum of one year of
field experience in wetland delineation. The substitute amendment extends the
effectiveness of a wetland identification or confirmation to 15 years for a nonfederal
wetland if the parcel of land is subject to a storm water management zoning
ordinance or a storm water discharge permit, and prohibits DNR from requiring a
new delineation for such a parcel until the wetland identification or confirmation
expires. This extension to 15 years of validity applies first to a wetland identification
or confirmation provided on January 1, 2003.
Artificial wetlands. Under current rules promulgated by DNR, discharges
to certain artificial wetlands are exempt from the wetland permitting requirements
unless DNR determines that significant functional values are present. This
substitute amendment exempts from wetland permitting requirements a discharge
to any artificial wetland. The substitute amendment defines an artificial wetland
as a landscape feature where hydrophitic vegetation may be present as a result of
human modification to the landscape or hydrology and for which DNR has no
definitive evidence showing a prior wetland or stream history that existed before
August 1, 1991, but excludes from the definition a wetland that serves as a fish
spawning area or a passage to a fish spawning area or that was created as a result
of a wetland mitigation requirement.
With respect to the exemptions created for nonfederal wetlands and for
artificial wetlands, the substitute amendment establishes a process under which
DNR must be notified of any project that may affect a wetland or landscape feature
that is eligible for such an exemption and then must issue a determination of
whether the eligibility requirements are met or not.
The substitute amendment also prohibits local governments from regulating a
discharge into nonfederal wetlands and artificial wetlands exempt from permitting
requirements under this substitute amendment and from regulating mitigation
requirements for such a discharge.
State administration of wetland permit program. Under current federal
law, a state's governor may apply to the EPA requesting that the state be delegated
the authority to administer its own individual and general permit program for the
discharge of dredged or fill material into navigable waters, including federal
wetlands, in place of the federal regulatory program. The substitute amendment
authorizes DNR to submit such an application on behalf of and at the direction of the
governor and authorizes DNR to assume that authority if the EPA delegates it to the
state.

Wetland mitigation grant program. Under the authority of current law,
and in consultation with the U.S. Army Corps of Engineers (ACE), DNR has created
the in lieu fee subprogram as one method by which wetland mitigation may be
accomplished. Under this subprogram, payments are made to DNR or another entity
for the purposes of improving or preserving wetlands or other water resource
features.
This substitute amendment requires DNR to establish a wetland mitigation
grant program (mitigation program) using in each fiscal year up to one-third of the
moneys received under the in lieu fee subprogram and of the moneys received from
surcharge fees charged for each application to proceed under a wetland general
permit. Under the mitigation program, nonprofit organizations may apply to DNR
on a rolling basis for grants to conduct projects to create, restore, or enhance
wetlands on certain DNR lands.
The substitute amendment requires DNR to identify land under its jurisdiction
that is appropriate to include in the mitigation program, but limits eligible land to
that acquired by the state in whole or in part with funding from the Warren
Knowles-Gaylord Nelson stewardship program or the Warren Knowles-Gaylord
Nelson stewardship 2000 program (DNR stewardship land). The substitute
amendment requires DNR to include in the mitigation program no less than 25
percent of all DNR stewardship land and, with some exceptions, to include land in
every watershed located on DNR stewardship land.
The substitute amendment requires DNR to issue a request for proposals
within three months after identifying appropriate lands or at the beginning of the
next fiscal year, whichever is earlier, and no later than July 1 of each subsequent
year. Under the substitute amendment, DNR must select and announce grant
recipients at the end of each quarter, as funds are available.
The substitute amendment imposes requirements for what a wetland
mitigation grant application must include, such as specifications of the wetland
functional values that the project area does not provide or only sparsely provides and
those that the proposed project would restore, enhance, or create. If an application
is approved, the substitute amendment requires DNR and the grantee to identify all
DNR permits that are required in order for the grantee to conduct the project,
requires DNR to waive all permit fees for those permits, and limits the timelines for
approval of those permits.
The substitute amendment also authorizes DNR to submit a request to ACE
that ACE move up all deadlines relating to its review and approval of wetland
mitigation project proposals under the in lieu fee subprogram.
The substitute amendment requires DNR to pay out a wetland mitigation grant
in three phases, withholding the final payment until the grantee certifies that the
project is complete. If the grantee fails to certify that the project is complete by the
date indicated for completion in its application, the substitute amendment requires
DNR to use the remaining unpaid grant amount to either complete the project or
contract with or issue a grant to another nonprofit organization to complete the
project, unless DNR agrees to modify the deadline because of unusual or unforeseen
circumstances. Under the substitute amendment, an organization that fails to

certify completion of a project by the date indicated in its application for completion,
or another date agreed to by DNR, is not eligible for a new grant for two grant cycles.
The substitute amendment requires DNR to report to the legislature on the
effectiveness of the mitigation program's first five years and any recommended
changes.
Property development grants. The substitute amendment also requires
DNR to establish a separate grant program under which it makes grants to nonprofit
organizations for certain property development activities relating to wetlands
affected by a project under a wetland mitigation grant. Property development
activities that may be funded under this grant program include those that increase
public access to, awareness about, or recreational use of the affected wetland, or that
improve habitat in, on, or near the affected wetland. Under the substitute
amendment, the property development grant program is funded from the property
development and local assistance subprogram of the Warren Knowles-Gaylord
Nelson stewardship 2000 program.
The substitute amendment requires an application for a property development
grant, though it is separate from the wetland mitigation grant program, to be
submitted at the same time as an application for a wetland mitigation grant, requires
DNR to make a determination on both grants at the same time, and prohibits DNR
from awarding a property development grant unless it also awards a wetland
mitigation grant. The substitute amendment also restricts a property development
grant to no more than 10 percent of the amount of the wetland mitigation grant and
provides that a property development grant may not be paid until the grantee
certifies that the project funded by the wetland mitigation grant is complete.
Wetland study council. The substitute amendment creates within DNR a
wetland study council, consisting of nine members, appointed for staggered six-year
terms by the governor and the secretary of natural resources, representing various
interests and expertises, to research and provide recommendations on various issues
relating to wetlands.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB547-ASA1,1 1Section 1. 15.347 (22) of the statutes is created to read:
AB547-ASA1,5,42 15.347 (22) Wetland study council. (a) There is created in the department
3of natural resources a wetland study council consisting of the following members,
4appointed for staggered 6-year terms:
AB547-ASA1,5,6 51. One member who is a representative of a statewide organization
6representing the business community.
AB547-ASA1,6,2
12. One member who is a representative of a statewide organization
2representing waterfowl interests.
AB547-ASA1,6,4 33. One member who is a representative of a statewide organization
4representing real estate and development interests.
AB547-ASA1,6,6 54. One member who is a representative of a statewide organization
6representing municipal interests.
AB547-ASA1,6,8 75. One member who is a representative of a statewide organization
8representing rural and agricultural interests.
AB547-ASA1,6,10 96. One member who is a representative of a statewide organization
10representing an outdoor sporting group with a specific interest in wetlands.
AB547-ASA1,6,11 117. One member who is a statewide wetland delineator.
AB547-ASA1,6,12 128. One member who is a statewide wetland consultant.
AB547-ASA1,6,15 139. One member who is a department of natural resources biologist or
14hydrologist and who is a wetland expert, appointed by the secretary of natural
15resources.
AB547-ASA1,6,1716 (b) The wetland study council shall research and develop recommendations on
17all of the following:
AB547-ASA1,6,19 181. The implementation and effectiveness of statewide wetland mitigation
19programs.
AB547-ASA1,6,24 202. Program elements that would be necessary for the department of natural
21resources to implement if the department assumes from the federal government the
22authority to administer the state's own individual and general permit program for
23the discharge of dredged or fill material into the navigable waters of the state under
24s. 281.12 (2).
AB547-ASA1,7,4
13. Issues related to the analysis of practicable alternatives that avoid and
2minimize the adverse impacts of a discharge into a wetland on wetland functional
3values and that will not result in any other significant adverse environmental
4consequences.
AB547-ASA1,7,6 54. Storm water management ponds and their potential to serve a role in
6wetland mitigation.
AB547-ASA1,7,8 75. Statewide incentive programs for creating, restoring, and enhancing
8wetlands.
AB547-ASA1,7,10 96. Statewide wetland trainings for department of natural resources staff,
10wetland consultants, and wetland delineators.
AB547-ASA1,7,12 117. The simplification of regulations associated with creating wetlands on farm
12drainage ditches for the purpose of phosphorus pollution retention.
AB547-ASA1,7,1513 8. Ways to improve the in-lieu fee subprogram of the wetland mitigation
14program, under s. 281.36 (3r) (e), including subcontracting the management of a
15program to a nonprofit organization.
AB547-ASA1,7,1916 9. The possibility of a professional, whose wetland delineation work is assured
17under the department of natural resources' wetland delineation professional
18assurance initiative, performing a wetland delineation confirmation under s. 23.321
19on behalf of the department.
AB547-ASA1,7,2020 10. Any other item related to wetlands at the discretion of the council.
AB547-ASA1,2 21Section 2 . 20.370 (9) (bm) of the statutes, as affected by 2017 Wisconsin Act
2259
, is amended to read:
AB547-ASA1,8,1023 20.370 (9) (bm) Wetland restoration — fees; payments. From the general fund,
24all moneys received as surcharge fees under s. 281.36 (11), all moneys received as
25transfers to the in lieu fee subprogram as provided in s. 281.36 (3s) (h), 2015 stats.,

1and all moneys received under the in lieu fee subprogram under s. 281.36 (3r) (e) for
2the restoration or creation of wetlands, to transfer at the beginning of each fiscal year
3one-third of the unencumbered balance of moneys in this appropriation account
4received under the in lieu fee subprogram under s. 281.36 (3r) (e) to the appropriation
5account under par. (bn),
and for any other activities authorized under the in lieu fee
6subprogram. If the transfer of moneys under this paragraph to the appropriation
7account under par. (bn) would cause the unencumbered balance in that
8appropriation account to exceed $10,000,000, the transfer shall be limited to an
9amount that causes the unencumbered balance in the appropriation account under
10par. (bn) to be equal to $10,000,000.
AB547-ASA1,3 11Section 3 . 20.370 (9) (bn) of the statutes is created to read:
AB547-ASA1,8,1412 20.370 (9) (bn) Wetland mitigation grants. All moneys transferred from the
13appropriation account under par. (bm) for the wetland mitigation grant program
14under s. 281.37.
AB547-ASA1,4 15Section 4 . 23.0917 (4) (c) 3. of the statutes is amended to read:
AB547-ASA1,8,1616 23.0917 (4) (c) 3. Grants under s. ss. 23.098 and 23.099.
AB547-ASA1,5 17Section 5 . 23.099 of the statutes is created to read:
AB547-ASA1,8,19 1823.099 Grants for property development relating to wetland
19mitigation.
(1) In this section:
AB547-ASA1,8,2120 (a) “Department stewardship land” has the meaning given under s. 281.37 (1)
21(a).
AB547-ASA1,8,2422 (b) “Nonprofit organization" means an organization that is described in section
23501 (c) (3) of the Internal Revenue Code and that is exempt from federal income tax
24under section 501 (a) of the Internal Revenue Code.
AB547-ASA1,9,8
1(2) The department shall establish a program to make grants from the
2appropriation under s. 20.866 (2) (ta) to nonprofit organizations for property
3development activities relating to wetlands created, restored, or enhanced under a
4wetland mitigation grant under s. 281.37 on department stewardship land. Property
5development activities for which a grant under this section may be awarded include
6those that increase public access to, awareness about, or recreational use of the new,
7restored, or enhanced wetland, or that improve habitat in, on, or near, the new,
8restored, or enhanced wetland.
AB547-ASA1,9,13 9(3) A nonprofit organization that applies for a grant under this section shall
10submit the application at the same time that it submits an application for a grant
11under s. 281.37. The department shall make its determination with respect to both
12grants at the same time, and may only award a grant under this section if it also
13awards a grant under s. 281.37.
AB547-ASA1,9,17 14(4) A grant awarded under this section may not exceed 10 percent of the
15amount of the related grant awarded under s. 281.37. The department may not issue
16the grant funding under this section to the grantee until the grantee has certified
17that the project funded by the grant under s. 281.37 is complete.
AB547-ASA1,6 18Section 6 . 23.321 (1) of the statutes is renumbered 23.321 (1) (intro.) and
19amended to read:
AB547-ASA1,9,2020 23.321 (1) Definition. (intro.) In this section, “wetland":
AB547-ASA1,9,21 21(b) “Wetland” has the meaning given in s. 23.32 (1).
AB547-ASA1,7 22Section 7 . 23.321 (1) (am) of the statutes is created to read:
AB547-ASA1,9,2423 23.321 (1) (am) “Nonfederal wetland” has the meaning given in s. 281.36 (1)
24(br).
AB547-ASA1,8 25Section 8 . 23.321 (2) (d) of the statutes is created to read:
AB547-ASA1,10,3
123.321 (2) (d) 1. In this paragraph, “qualified 3rd person” means an individual
2who has completed basic and advanced wetland training and has a minimum of one
3year of field experience in wetland delineation.
AB547-ASA1,10,174 2. A wetland confirmation that consists of a written statement, based upon the
5department's review of the boundaries of a wetland as delineated by a qualified 3rd
6person and not based upon an on-site inspection of the land by the department, of
7whether the department concurs with the delineation. The delineation prepared by
8the qualified 3rd person shall include the exact location and boundaries of the
9wetland. The department shall concur with the boundaries of a wetland delineated
10by a qualified 3rd person unless the department determines that the location and
11boundaries of the wetland identified in the delineation are not accurate based on
12maps, aerial photographs, surveys, wetland delineations, or hydrophitic soil
13conditions. If the department concurs with the boundaries of a wetland delineated
14by a qualified 3rd person, the department's statement under this paragraph shall
15also include the exact location and boundaries of the wetland. A wetland
16confirmation under this paragraph is available only with respect to a nonfederal
17wetland.
AB547-ASA1,9 18Section 9 . 23.321 (4) (a) 3. of the statutes is amended to read:
AB547-ASA1,10,2119 23.321 (4) (a) 3. Provide a wetland confirmation not later than 60 days after
20a person files a request, in the manner and form required by the department, for a
21wetland confirmation under sub. (2) (c).
AB547-ASA1,10 22Section 10 . 23.321 (4) (a) 4. of the statutes is created to read:
AB547-ASA1,10,2523 23.321 (4) (a) 4. Provide a wetland confirmation not later than 15 days after
24a person files a request, in the manner and form required by the department, for a
25wetland confirmation under sub. (2) (d).
AB547-ASA1,11
1Section 11. 23.321 (5) of the statutes is renumbered 23.321 (5) (a) and
2amended to read:
AB547-ASA1,11,63 23.321 (5) (a) A Except as provided in par. (b), a wetland identification
4provided by the department under sub. (2) (b) and a wetland confirmation provided
5by the department under sub. (2) (c) remain effective for 5 years from the date
6provided by the department.
AB547-ASA1,12 7Section 12 . 23.321 (5) (b) of the statutes is created to read:
AB547-ASA1,11,118 23.321 (5) (b) 1. A wetland identification provided by the department under
9sub. (2) (b) and a wetland confirmation provided by the department under sub. (2)
10(c) or (d) remain effective for 15 years from the date provided by the department if
11all of the following conditions are met:
AB547-ASA1,11,1212 a. The wetland is a nonfederal wetland.
AB547-ASA1,11,1513 b. The parcel of land is subject to a storm water management zoning ordinance
14enacted under s. 59.693, 60.627, 61.354, or 62.234 or a storm water discharge permit
15issued under s. 283.33.
AB547-ASA1,11,1816 2. The department may not invalidate or amend an existing wetland
17delineation, or require a new wetland delineation, for a parcel to which subd. 1.
18applies until the wetland identification or confirmation expires.
AB547-ASA1,13 19Section 13 . 281.12 (2) of the statutes is created to read:
AB547-ASA1,12,220 281.12 (2) The department, on behalf of and at the direction of the governor,
21may submit an application to the federal environmental protection agency under 33
22USC 1344
(g) seeking the delegation of authority to this state to administer its own
23individual and general permit program for the discharge of dredged or fill material
24into the navigable waters of this state. If the federal environmental protection

1agency delegates this authority to this state, the department may assume that
2authority.
AB547-ASA1,14 3Section 14. 281.36 (3b) (b) of the statutes, as affected by 2017 Wisconsin Acts
458
and 115, is amended to read:
AB547-ASA1,12,135 281.36 (3b) (b) No person may discharge dredged material or fill material into
6a wetland unless the discharge is authorized by a wetland general permit or
7individual permit issued by the department under this section or the discharge is
8exempt under sub. (4), (4m) (a), (4n), or (4r). No person may violate any condition
9contained in a wetland general or individual permit issued by the department under
10this section. The department may not issue a wetland general or individual permit
11under this section unless it determines that the discharge authorized pursuant to the
12wetland general or individual permit will comply with all applicable water quality
13standards.
AB547-ASA1,15 14Section 15. 281.36 (3m) (a) of the statutes, as affected by 2017 Wisconsin Acts
1558
and 115, is amended to read:
AB547-ASA1,12,2516 281.36 (3m) (a) When permit required. Any person wishing to proceed with a
17discharge into any wetland shall submit an application for a wetland individual
18permit under this subsection unless the discharge has been authorized under a
19wetland general permit as provided in sub. (3g) or is exempt under sub. (4), (4m) (a),
20(4n)
, or (4r). Before submitting the application, the department shall hold a meeting
21with the applicant to discuss the details of the proposed discharge and the
22requirements for submitting the application and for delineating the wetland. An
23applicant may include in the application a request for a public informational hearing.
24The application shall be accompanied by the applicable fee specified in sub. (11) or
25(12) (a).
AB547-ASA1,16
1Section 16. 281.36 (3n) (d) 1. of the statutes, as affected by 2017 Wisconsin Act
2118
, is amended to read:
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