LRB-3265/2
RCT:eev:jm
2013 - 2014 LEGISLATURE
March 14, 2014 - Introduced by Representatives Hulsey and C. Taylor,
cosponsored by Senator Risser. Referred to Committee on Jobs, Economy and
Mining.
AB868,1,6
1An Act to amend chapter 295 (title) and subchapter I (title) of chapter 295
2[precedes 295.11]; and
to create 20.370 (6) (cs), 25.46 (13) and 295.24 of the
3statutes;
relating to: monitoring industrial sand mining and processing
4operations, a fee on the extraction of certain sand, compensation for costs
5incurred because of sand mining, granting rule-making authority, and making
6an appropriation.
Analysis by the Legislative Reference Bureau
This bill requires a person who engages in the mining of frac sand (a type of sand
that can be used to prop open rock fissures and increase the flow of natural gas or
oil) to pay a fee of one dollar per ton of frac sand extracted.
The bill requires the Department of Natural Resources (DNR) to use a portion
of the revenue generated from the fee imposed on frac sand mining to provide
compensation to cities, villages, towns, and counties for costs incurred due to the
impacts of frac sand mining, including costs of road repair and repairing damaged
wetlands.
The bill also authorizes ten full-time equivalent positions to DNR for
monitoring industrial sand mining and processing operations and provides funding
for those positions from the environmental fund.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB868,1
1Section
1. 20.370 (6) (cs) of the statutes is created to read:
AB868,2,52
20.370
(6) (cs)
Compensation for frac sand mining impacts. From the
3environmental fund, from the moneys received under s. 295.24 (2), the amount by
4which those moneys exceed $1,117,000 in each fiscal year for compensation for frac
5sand mining impacts under s. 295.24 (3).
AB868,2
6Section
2. 25.46 (13) of the statutes is created to read:
AB868,2,87
25.46
(13) The moneys received under s. 295.24 (2) for environmental
8management.
AB868,2,1212
NONMETALLIC MINING
RECLAMATION;
AB868,2,1313
OIL AND GAS;
AB868,2,1414
ferrous metalliC mining
AB868,4
15Section
4. Subchapter I (title) of chapter 295 [precedes 295.11] of the statutes
16is amended to read:
AB868,2,1818
SUBCHAPTER I
AB868,2,1919
NONMETALLIC MINING
RECLAMATION
AB868,5
20Section
5. 295.24 of the statutes is created to read:
AB868,3,2
1295.24 Frac sand mining fee and community impact program. (1) 2Definitions. In this section:
AB868,3,53
(a) "Frac sand" means a type of industrial sand that can be used in deep well
4applications to prop open rock fissures and increase the flow rate of natural gas or
5oil.
AB868,3,66
(b) "Political subdivision" means a city, village, town, or county.
AB868,3,8
7(2) Fee. (a) A person who engages in frac sand mining shall pay to the
8department a fee of $1 for each ton of frac sand extracted by the person in this state.
AB868,3,119
(b) A person shall pay the fee under par. (a) for the frac sand extracted during
10a calendar quarter no later than the 30th day after the last day of the calendar
11quarter.
AB868,3,16
12(3) Community impact program. (a) From the appropriation under s. 20.370
13(6) (cs), the department shall provide compensation to political subdivisions for costs
14incurred due to the impacts of frac sand mining, including costs incurred for road
15repair, cleaning up spilled sand, repairing damaged wetlands, and mitigating other
16environmental impacts.
AB868,3,1817
(b) The department shall promulgate rules for the program under this
18subsection.
AB868,6
19Section
6.
Fiscal changes.
AB868,4,520
(1)
Sand operation monitoring. In the schedule under section 20.005 (3) of the
21statutes for the appropriation to the department of natural resources under section
2220.370 (3) (mq) of the statutes, as affected by the acts of 2013, the dollar amount is
23increased by $279,250 for the first fiscal year of the fiscal biennium in which this
24subsection takes effect to increase the authorized FTE positions for the department
25by 10.0 SEG positions for monitoring industrial sand mining and processing
1operations. In the schedule under section 20.005 (3) of the statutes for the
2appropriation to the department of natural resources under section 20.370 (3) (mq)
3of the statutes, as affected by the acts of 2013, the dollar amount is increased by
4$1,117,000 for the second fiscal year of the fiscal biennium in which this subsection
5takes effect to provide funding for the positions authorized in this subsection.
AB868,7
6Section
7.
Initial applicability.
AB868,4,87
(1)
Sand mining fee. The treatment of section 295.24 (2) of the statutes first
8applies to frac sand extracted on March 1, 2014.
