SB77,1440,2525 (e) Develop and adopt a user fee system.
SB77,1441,8
1(9) Financial assistance commitments. The department and the department
2of administration may, at the request of a local governmental unit, issue a notice of
3financial assistance commitment after the local governmental unit's application for
4safe drinking water financial assistance has been approved under sub. (7) and
5funding has been allocated under sub. (8) for the local governmental unit's project.
6The notice of financial assistance commitment shall specify the conditions that the
7local governmental unit must meet to secure financial assistance and shall include
8the estimated repayment schedules and other terms of the financial assistance.
SB77,1441,12 9(10) Deadline for closing. If funding is allocated to a project under sub. (8)
10for a loan and the loan is not closed before April 30 of the year following the year in
11which funding is allocated, the department of administration shall release the
12funding allocated to the project.
SB77,1441,14 13(11) Loan interest rates. (a) Except as provided under par. (b), the interest
14rate on a safe drinking water loan program loan shall be as follows:
SB77,1441,1615 1. For a local governmental unit that does not meet financial eligibility criteria
16established by the department by rule, 55% of market interest rate.
SB77,1441,1817 2. For a local governmental unit that meets financial eligibility criteria
18established by the department by rule, 33% of market interest rate.
SB77,1441,2119 (b) The department and the department of administration jointly may request
20the joint committee on finance to take action under s. 13.101 (11) to modify the
21percentage of market interest rate under par. (a) 1. or 2.
SB77,1441,22 22(12) Duties of the department. The department shall do all of the following:
SB77,1441,2423 (a) Promulgate rules establishing eligibility criteria for applicants and projects
24under this section.
SB77,1442,2
1(b) Promulgate rules that are necessary for the execution of its responsibilities
2under the safe drinking water loan program.
SB77,1442,43 (c) Cooperate with the department of administration in administering the safe
4drinking water loan program.
SB77,1442,75 (d) By May 1 of each even-numbered year, prepare and submit to the
6department of administration a biennial needs list that includes all of the following
7information:
SB77,1442,108 1. A list of drinking water projects that the department estimates will apply
9for financial assistance under the safe drinking water loan program during the next
10biennium.
SB77,1442,1211 2. The estimated cost and estimated construction schedule of each project on
12the list, and the total of the estimated costs of all projects on the list.
SB77,1442,1313 3. The estimated rank of each project on the priority list under sub. (6).
SB77,1442,1514 (e) Submit a biennial budget request under s. 16.42 for the safe drinking water
15loan program.
SB77,1442,1716 (f) Have the lead state role with the federal environmental protection agency
17concerning the safe drinking water loan program.
SB77,1442,2018 (g) Have the lead state role with local governmental units in providing safe
19drinking water loan program information, and cooperate with the department of
20administration in providing that information to local governmental units.
SB77,1442,2321 (h) Inspect periodically safe drinking water loan program project construction
22to determine project compliance with construction plans and specifications approved
23by the department and the requirements of the safe drinking water loan program.
SB77,1443,3
1(13) Capitalization grant. The department may enter into an agreement
2under 42 USC 300j-12 (a), with the federal environmental protection agency to
3receive a capitalization grant for the safe drinking water loan program.
SB77, s. 3571 4Section 3571. 281.62 of the statutes is created to read:
SB77,1443,5 5281.62 Other drinking water quality activities. (1) In this section:
SB77,1443,86 (a) "Community water system" means a public water system that serves at
7least 15 service connections used by year-round residents of the area served by the
8public water system or that regularly serves at least 25 year-round residents.
SB77,1443,109 (b) "Noncommunity water system" means a public water system that is not a
10community water system.
SB77,1443,1111 (c) "Public water system" has the meaning given in s. 281.61 (1) (c).
SB77,1443,14 12(2) (a) With the approval of the department of administration, the department
13may expend funds from the appropriation accounts under s. 20.320 (2) (s) and (x) for
14any of the following:
SB77,1443,1915 1. Providing a loan to the owner of a community water system or a nonprofit
16noncommunity water system to acquire land or a conservation easement from a
17willing seller or grantor to protect the source water of the water system from
18contamination and to ensure compliance with national primary drinking water
19regulations under 42 USC 300g-1.
SB77,1443,2120 2. Providing a loan to the owner of a community water system to do any of the
21following:
SB77,1444,222 a. Implement voluntary source water protection measures in areas delineated
23as provided in 42 USC 300j-13 in order to facilitate compliance with national
24primary drinking water regulations under 42 USC 300g-1 or otherwise significantly

1further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f
2to 300j-26.
SB77,1444,43 b. Implement a program for source water quality protection partnerships as
4provided in 42 USC 300j-14.
SB77,1444,75 3. Assisting the owner of a public water system to develop the technical,
6managerial and financial capacity to comply with national primary drinking water
7regulations under 42 USC 300g-1.
SB77,1444,984. Delineating or assessing source water protection areas as provided under 42
9USC 300j-13
.
SB77,1444,11105. Protecting wellhead areas from contamination as provided in 42 USC
11300h-7
.
SB77,1444,1512 (b) In any fiscal year, the department may not expend under par. (a) more than
1315% of the funds provided under 42 USC 300j-12 in that fiscal year. In any fiscal
14year, the department may not expend under par. (a) 1., 2., 3., 4. or 5. more than 10%
15of the funds provided under 42 USC 300j-12 in that fiscal year.
SB77,1444,18 16(3) (a) With the approval of the department of administration, the department
17may expend funds from the appropriation accounts under s. 20.320 (2) (s) and (x) for
18any of the following:
SB77,1444,19191. Public water system supervision as provided in 42 USC 300j-2 (a).
SB77,1444,2020 2. Technical assistance concerning source water protection.
SB77,1444,2221 3. Developing and implementing a capacity development strategy required
22under 42 USC 300g-9 (c).
SB77,1444,23234. Operator certification required under 42 USC 300g-8.
SB77,1444,2524 (b) In any fiscal year, the department may not expend under par. (a) more than
2510% of the funds provided under 42 USC 300j-12 in that fiscal year.
SB77,1445,5
1(4) With the approval of the department of administration, the department
2may expend funds from the appropriation accounts under s. 20.320 (2) (s) and (x) to
3provide technical assistance to public water systems serving 10,000 or fewer persons.
4In any fiscal year, the department may not expend under this subsection more than
52% of the funds provided under 42 USC 300j-12 in that fiscal year.
SB77, s. 3572 6Section 3572. 281.625 of the statutes is created to read:
SB77,1445,7 7281.625 Drinking water loan guarantee program. (1) In this section:
SB77,1445,108 (a) "Community water system" means a public water system that serves at
9least 15 service connections used by year-round residents or that regularly serves
10at least 25 year-round residents.
SB77,1445,1111 (b) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).
SB77,1445,1312 (c) "Noncommunity water system" means a public water system that is not a
13community water system.
SB77,1445,1414 (d) "Public water system" has the meaning given in s. 281.61 (1) (c).
SB77,1445,18 15(2) The department, in consultation with the department of administration,
16shall promulgate rules for determining whether a loan is an eligible loan under s.
17234.86 (3) for a loan guarantee under s. 234.86. The rules shall be consistent with
1842 USC 300j-12.
SB77,1445,22 19(3) The department shall determine whether a loan to the owner of a
20community water system or the nonprofit owner of a noncommunity water system
21is an eligible loan under s. 234.86 (3) for the purposes of the loan guarantee program
22under s. 234.86.
SB77,1446,2 23(4) With the approval of the department of administration, the department of
24natural resources may transfer funds from the appropriation accounts under s.

120.320 (2) (s) and (x) to the Wisconsin drinking water reserve fund under s. 234.933
2to guarantee loans under s. 234.86.
SB77, s. 3573 3Section 3573. 281.65 (1) (d) of the statutes is amended to read:
SB77,1446,74 281.65 (1) (d) Focus limited technical and financial resources in critical
5geographic locations through the selection of priority lakes identified under sub. (4)
6(cd)
and priority watersheds where nonpoint source related water quality problems
7are the most severe and control is most feasible.
SB77, s. 3574 8Section 3574. 281.65 (2) (a) of the statutes is amended to read:
SB77,1446,219 281.65 (2) (a) "Best management practices" means practices, techniques or
10measures, except for dredgings dredging, identified in areawide water quality
11management plans, which are determined to be the most effective means of
12preventing or reducing pollutants generated from nonpoint sources, or from the
13sediments of inland lakes polluted by nonpoint sources, to a level compatible with
14water quality objectives established under this section and which do not have an
15adverse impact on fish and wildlife habitat. The practices, techniques or measures
16include land acquisition, storm sewer rerouting and the removal of structures
17necessary to install structural urban best management practices, facilities for the
18handling and treatment of milkhouse wastewater, repair of fences built using grants
19under this section and measures to prevent or reduce pollutants generated from
20mine tailings disposal sites for which the department has not approved a plan of
21operation under s. 289.30.
SB77, s. 3575 22Section 3575. 281.65 (2) (be) of the statutes is amended to read:
SB77,1446,2423 281.65 (2) (be) "Priority lake" means any lake or group of lakes that are
24identified under sub. (3) (am) or (4) (cm).
SB77, s. 3576 25Section 3576. 281.65 (3) (a) of the statutes is amended to read:
SB77,1447,2
1281.65 (3) (a) Review the lists submitted under sub. (4) (c) and (cd) and reports
2submitted under sub. (4) (c), (cd) and (cg).
SB77, s. 3577 3Section 3577. 281.65 (3) (am) of the statutes is amended to read:
SB77,1447,54 281.65 (3) (am) Designate Identify priority watersheds and priority lakes
5based on reports submitted under sub. (4) (c) and (cd) as provided in sub. (3m).
SB77, s. 3578 6Section 3578. 281.65 (3m) of the statutes is created to read:
SB77,1447,167 281.65 (3m) (a) 1. No later than July 1, 1998, the board shall identify priority
8watersheds based on the list submitted under sub. (4) (c) and recommendations by
9the department and the department of agriculture, trade and consumer protection
10without regard to any priority watershed designations made before the board acts
11under this subdivision, except for priority watershed designations under sub. (4)
12(cm). The department and the department of agriculture, trade and consumer
13protection shall limit the number of watersheds that they recommend to the board
14to the number that they determine will enable the department to comply with sub.
15(4) (g) 9., assuming that the level of funding for the program under this section
16remains the same as on the effective date of this subdivision .... [revisor inserts date].
SB77,1447,2117 2. If a watershed is designated as a priority watershed before the board acts
18under subd. 1. and the board does not identify the watershed as a priority watershed
19under subd. 1., the board shall terminate the watershed's designation as a priority
20watershed. This subdivision does not apply to priority watershed designations made
21under sub. (4) (cm).
SB77,1447,2522 (b) 1. No later than July 1, 1998, the board shall identify priority lakes based
23on the list submitted under sub. (4) (cd) and recommendations by the department
24and the department of agriculture, trade and consumer protection without regard to
25any priority lake designations made before the board acts under this subdivision.
SB77,1448,3
12. If a lake is designated as a priority lake before the board acts under subd.
21. and the board does not identify the lake as a priority lake under subd. 1., the board
3shall terminate the lake's designation as a priority lake.
SB77,1448,74 (c) If the board terminates a priority watershed or priority lake designation
5under this subsection, the board shall review the status of the project in the priority
6watershed or priority lake area and direct the department to continue, modify or
7eliminate funding for the project.
SB77, s. 3579 8Section 3579. 281.65 (4) (c) of the statutes is repealed and recreated to read:
SB77,1448,139 281.65 (4) (c) Prepare a list of the watersheds in this state in order of the level
10of impairment of the waters in each watershed caused by nonpoint source pollution,
11taking into consideration the location of impaired water bodies that the department
12has identified to the federal environmental protection agency under 33 USC 1313 (d)
13(1) (A), and submit the list to the board no later than January 1, 1998.
SB77, s. 3580 14Section 3580. 281.65 (4) (cd) of the statutes is repealed and recreated to read:
SB77,1448,1915 281.65 (4) (cd) Prepare a list of the lakes in this state in order of the level of
16impairment of the waters in the lakes caused by nonpoint source pollution, taking
17into consideration the location of impaired water bodies that the department has
18identified to the federal environmental protection agency under 33 USC 1313 (d) (1)
19(A), and submit the list to the board no later than January 1, 1998.
SB77, s. 3581 20Section 3581. 281.65 (4) (dm) of the statutes is amended to read:
SB77,1448,2321 281.65 (4) (dm) Establish water quality objectives for each water basin and for
22each priority watershed and priority lake and identify the best management
23practices to achieve the water quality objectives.
SB77, s. 3582 24Section 3582. 281.65 (4) (e) of the statutes is amended to read:
SB77,1449,15
1281.65 (4) (e) Promulgate rules, in consultation with the department of
2agriculture, trade and consumer protection, as are necessary for the proper
3execution and administration of the program under this section. Before
4promulgating rules under this paragraph, the department shall submit the rules to
5the land and water conservation board for review under sub. (3) (at). The rules shall
6include standards and specifications concerning best management practices which
7are required for eligibility for cost-sharing grants under this section. The
8department may waive the standards and specifications in exceptional cases. The
9rules shall specify which best management practices are cost-effective best
10management practices.
Only persons involved in the administration of the program
11under this section, persons who are grant recipients or applicants and persons who
12receive notices of intent to issue orders under s. 281.20 (1) (b) are subject to the rules
13promulgated under this paragraph. Any rule promulgated under this paragraph
14which relates or pertains to agricultural practices relating to animal waste handling
15and treatment is subject to s. 13.565.
SB77, s. 3583 16Section 3583. 281.65 (4) (em) of the statutes is created to read:
SB77,1449,2217 281.65 (4) (em) In identifying best management practices under pars. (dm) and
18(g) 4., identify cost-effective best management practices, as specified under par. (e),
19except in situations in which the use of a cost-effective best management practice
20will not contribute to water quality improvement or will cause a water body to
21continue to be impaired as identified to the federal environmental protection agency
22under 33 USC 1313 (d) (1) (A).
SB77, s. 3584 23Section 3584. 281.65 (4) (g) (intro.) of the statutes is amended to read:
SB77,1450,424 281.65 (4) (g) (intro.) In cooperation with the department of agriculture, trade
25and consumer protection and the appropriate governmental unit, prepare priority

1watershed and priority lakes plans to implement nonpoint source water pollution
2abatement projects and storm water control activities described in sub. (8c) in
3priority watersheds and priority lake areas, as designated under sub. (3) (am) or (4)
4(cm)
. In preparing the plans, the department shall:
SB77, s. 3585 5Section 3585. 281.65 (4) (L) of the statutes is created to read:
SB77,1450,106 281.65 (4) (L) Before September 1 of each year, in consultation with the
7department of agriculture, trade and consumer protection, submit a budget report
8to the board that includes anticipated expenditures for projects under this section
9during the next year, criteria for ending projects under this section and, if anticipated
10expenditures exceed anticipated funding, a plan for reducing expenditures.
SB77, s. 3586 11Section 3586. 281.65 (4c) of the statutes is created to read:
SB77,1450,1612 281.65 (4c) (a) Beginning on July 1, 1998, a governmental unit may request
13funding for a priority watershed project, a priority lake project or a nonpoint source
14water pollution abatement project that is not in a priority watershed or a priority
15lake area by submitting an application to the board. An application shall be
16submitted before July 15 to be considered for initial funding in the following year.
SB77,1450,2017 (b) The department, in consultation with the department of agriculture, trade
18and consumer protection, shall use the system approved under par. (e) to determine
19the score of each project for which the board receives an application under par. (a)
20and shall inform the board of the scores no later than September 1 of each year.
SB77,1450,2421 (c) After receiving project scores under par. (b) and before November 1 of each
22year, the board shall select projects for funding under this section in the following
23year. To the extent practicable, within the requirements of this section, the board
24shall select projects so that projects are distributed evenly around this state.
SB77,1451,5
1(d) No later than April 1, 1998, the department, in consultation with the
2department of agriculture, trade and consumer protection, shall propose to the board
3a scoring system for ranking nonpoint source water pollution abatement projects for
4which applications are submitted under par. (a). The criteria on which the scoring
5system is based shall include all of the following:
SB77,1451,76 1. The extent to which the application proposes to use the cost-effective and
7appropriate best management practices to achieve water quality goals.
SB77,1451,108 2. The existence in the project area of an impaired water body that the
9department has identified to the federal environmental protection agency under 33
10USC 1313
(d) (1) (A).
SB77,1451,1211 3. The extent to which the project will result in the attainment of established
12water quality objectives.
SB77,1451,1313 4. The local interest in and commitment to the project.
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