Scope statements
Financial Institutions - Banking
Financial Institutions - Savings Banks
Financial Institutions - Savings and Loan
Subject
Sections DFI—Bkg 3.08 and DFI—SB 16.04, and ch. DFI—SL 21 relating to debt cancellation contracts and debt suspension agreements.
Policy analysis
The objective of the rule is to create ss. DFI—Bkg 3.08 and DFI—SB 16.04, and ch. DFI—SL 21 relating to debt cancellation contracts and debt suspension agreements. The purpose of this rule is to authorize Wisconsin-chartered banks, savings banks, and savings and loan associations to provide debt cancellation contracts and debt suspension agreements in the same manner that such products are provided by federally-chartered banks, savings banks, and savings and loan associations. The rule assists Wisconsin-chartered banks, savings banks, and savings and loans in remaining competitive with federally chartered banks, savings banks, and savings and loan associations regarding these products. The promulgation of this rule requires the approval of the Banking Review Board and the Savings Institution Review Board.
Statutory authority
Staff time required
120 hours.
Entities affected by rule
Wisconsin-charted banks, savings banks, and savings and loan associations.
Comparison with federal requirements
12 CFR Part 37, OTS Opinion Letter 9/15/93, and OTS Opinion Letter 12/18/95.
Financial Institutions - Credit Unions
Subject
Chapter DFI—CU 74 relating to incidental powers activity authority parity with federal credit unions.
Policy analysis
The objective of the rule is to create ch. DFI—CU 73 relating to incidental powers activity authority parity with federal credit unions. The purpose of this rule is to permit Wisconsin-chartered credit unions to provide certain loan-related products in the same manner that such products are provided by federally-chartered credit unions. The rule assists Wisconsin-chartered credit unions in remaining competitive with federal credit unions regarding these products. The promulgation of this rule has been approved by the Credit Union Review Board.
Statutory authority
Staff time required
120 hours.
Entities affected by rule
State-chartered credit unions.
Comparison with federal requirements
NCUA Rules and Regulations Part 721.
Natural Resources
Subject
Objective of the rule. The development and adoption of an updated stationary source nitrogen oxide (NOx) control program to meet Clean Air Act requirements and demonstrate attainment by 2010 of the 8-hour ozone air quality standard.
New regulatory requirements are anticipated to be incorporated into ch.
NR 428, Wis. Adm. Code “Control of Nitrogen Compound Emissions" and ch.
NR 406, Wis. Adm. Code “Construction Permits".
Policy analysis
In June of 2004 the US EPA designated ten Wisconsin counties non-attainment for the 8-hour ozone ambient air quality standard. The counties of Kenosha, Racine, Milwaukee, Waukesha, Washington, Ozaukee, and Sheboygan are designated “Moderate" non-attainment areas for the 8-hr ozone standard. The remaining counties of Manitowoc, Kewaunee, and Door are designated “Basic" non-attainment areas.
The designation triggered Clean Air Act requirements for adopting rules that reduce nitrogen oxide emissions sufficiently to demonstrate attainment of the standard by 2010. A minimum requirement is the adoption of reasonably available control measures (RACM) for stationary sources in all non-attainment counties as expeditiously as possible per section 172(c) of the CAA. An overlapping requirement in “moderate" counties is adoption of reasonably available control technology (RACT) for major NOx sources. It is anticipated the RACM and RACT requirements will be equivalent for many emission units. The level of control represented by RACM and RACT is yet to be determined by the department based on an evaluation of available controls and information from potentially affected sources.
The demonstration of attainment may require more stringent controls than the minimum RACM and RACT requirements and/or include additional source categories. The additional reduction may address sources outside of the non-attainment counties but which influence the air quality in non-attainment areas. The extent of NOx control for sources and source categories is related to technical control feasibility and cost considerations in addition to projected non-attainment area air quality impacts. The overall control achievable and implemented by the stationary source program will also be balanced against NOx reductions in other emitting sector categories (mobile, area, etc..) and potentially from sources of volatile organic compounds (VOCs). Additional factors in setting the reduction targets may relate to visibility (regional haze) improvement planning needs, Industrial Boiler MACT, state and federal mercury regulation, federal requirements promulgated during rule development, and regional Governors agreements addressing regional emission reductions.
Statutory authority
Sections 172 (c) (1) and (6) and 182 (a) (2) (A) and (b) (2) and (f) [
42 USC 7502 (c) (1) and (6) and
7511a (a) (2) (A) and (b) (2) and (f)]; and 285.11 (6) and 285.14, Stats.
Staff time required
The department estimates approximately 1,500 hours will be required to develop a NOx RACT program and rules.
Comparison with federal requirements
The “NOx SIP" call, developed in 1998, provides the most recent indication of the minimum level of control expected by a Wisconsin stationary source NOx control program. The SIP call applies to twenty-one eastern states (excluding Wisconsin) to address regional NOx transport affecting 1-hour ozone attainment.
A major component of the NOX SIP call is a 70 to 80% emission reduction for the electric utility sector characterized by USEPA as “highly-cost effective". In comparison, the minimum RACT control required for the Wisconsin control program is defined by the CAA as reasonably available and cost-effective. This definition leads to an expectation that RACT controls would have an allowable cost greater than the highly cost-effective NOx SIP call control levels. Therefore, electric utility control levels for RACT in the Wisconsin NOx control program are expected to be equivalent to or greater than NOx SIP control levels.
The NOx SIP call also addressed NOx control for large sources. EPA assumed reductions of 60% for large industrial boilers, 90% for stationary internal combustion engines, and 30% for cement kilns. This range of emission reductions provides a minimum expectation for larger non-utility source RACT level of control.
Entities affected by rule
Any facility operating a combustion process such as electric generation, industrial steam generation, process heating, internal combustion engines, and incineration is potentially affected by a NOx control program. The minimum RACT requirement applies to all facilities with the potential to emit greater than 100 tons per year of nitrogen oxides. A facility emitting above this threshold is considered a major source with reductions applying to its NOx emission units and processes. As a result, RACT will apply to numerous sources and include a wide range of emission unit types and sizes. The broader RACM requirement is not limited to a major source and may extend to smaller sources or individual units as compared to the RACT requirement.
Natural Resources
Subject
Objective of the rule. Volatile organic compounds (VOC) are those organic compounds, which contribute to ozone formation through atmospheric photochemical reactions. It has been EPA's policy that organic compounds with a negligible level of reactivity need not be regulated to reduce ozone. The EPA lists these compounds in its regulations at
40 CFR 51.100(s) and excludes them from the definition of VOC. The Department's definition of “volatile organic compounds" has been identical with the federal definition. On November 29, 2004, EPA revised the definition of VOC by identifying additional compounds to be excluded from the definition of VOC. The Department is proposing to revise the definition of VOC in ch.
NR 400 to be consistent with the federal regulation. The compounds proposed to be excluded from the VOC definition are listed in the attached Rule Agenda / Board Action Checklist.
In addition the Department is proposing to revise the VOC emission control requirements for yeast manufacturing in s.
424.05. The change is intended to address an inconsistency with requirements in the national emission standards for hazardous air pollutants (NESHAP) for yeast manufacturing promulgated by EPA on May 21, 2001. The proposed revision addresses the provision in the NESHAP that 98%, rather than 100%, of the fermentation batches need to meet the existing VOC emission limits.
Policy analysis
The proposed revisions do not include any changes in policy. However the revision of the VOC definition introduces a new type of compound, an organic compound which is not considered a VOC for purposes of VOC emission limitations or VOC content requirements, but it is a VOC for purposes of recordkeeping, emission reporting, and inventory requirements.
Statutory authority
Staff time required
The estimated time needed to develop the proposed rule is approximately 330 hours
