B. Stage 2 Disinfectants and Disinfection Byproduct Rule
1. One-time Costs
a. The rule requires the Department to issue and track additional monitoring requirements. This will require modification of the Department's Drinking Water Data System. The Department estimates that this modification will take approximately 50 hours of contract programming time at an estimated hourly rate of $84. Therefore, 50 hours of database architect contract programming time x $84/hour = $4,200.
C. Long Term 2 Enhanced Surface Water Treatment Rule
1. One-time Costs
a. The rule will require the Department to issue and track additional monitoring requirements. This will require modification of the Department's Drinking Water Data System. The Department estimates that this modification will take approximately 50 hours of contract programming time at an estimated hourly rate of $84. Therefore, 50 hours of database architect contract programming time x $84/hour = $4,200.
In total, the rule will result in additional one-time costs of $16,800 and additional annualized costs of $80,500 and approximately 1.34 FTE of staff time required to implement the rule.
Local government fiscal impact
A. Stage 2 Disinfectants and Disinfection Byproduct Rule
1. Annual Costs
a. The rule will require additional monitoring of disinfection byproducts. The Department estimates that 615 systems affected by this rule will be required to collect additional samples at an average cost of $580/system for a total estimated cost of $356,700.
B. Long Term 2 Enhanced Surface Water Treatment Rule
1. One-time Costs
a. The rule will require all municipal systems with surface water sources to complete additional source water monitoring for cryptosporidium and e-coli. There are currently 20 surface water systems in Wisconsin. The rule will require these systems to conduct 24 samples over a 5-year period starting in 2015. The estimated cost of the required analysis is $500/sample. Therefore, 20 surface water systems x 24 samples x $500/sample = $240,000.
C. Mandatory Disinfection Rule
1. One-time Costs
a. The rule will require all municipal water systems to disinfect drinking water. There are currently approximately 71 systems in Wisconsin serving water that is not disinfected, although all systems are required to have the necessary equipment to disinfect. The Department estimates that approximately 50 wells will need new disinfection equipment in order to implement permanent disinfection. The Department estimates that installing new disinfection equipment will cost approximately $10,000/well. Therefore, 50 municipal wells x $10,000/well = $500,000.
b. The rule will require all municipal water systems to disinfect drinking water. There are approximately 71 systems in Wisconsin serving water that is not disinfected. When these systems begin disinfection they will be required to conduct preliminary monitoring for disinfection by products. This preliminary monitoring will require two samples per quarter at a cost of $350/sample. Therefore, 71 systems x 2 samples/quarter x 4 quarters x $350 = $198,800.
2. Annual Costs
a. The rule will require all municipal water systems to disinfect drinking water. There are currently approximately 71 systems in Wisconsin serving water that is not disinfected. The Department estimates that chemicals for disinfection at these systems will cost an average of $145/month. Therefore, 71 systems x $145/month x 12 months = $123,540.
b. The Department estimates that the 71 systems affected by this rule will also incur additional costs to conduct disinfection by-product monitoring. These systems will be required to collect 2 samples once every 3 years at a cost of $350/sample. Therefore, 71 systems x 2 samples x $350/sample ÷ 3 (once every 3 years) = $16,600.
In total, the rule will result in additional one-time costs of $938,800 and additional annualized costs of $496,800 for local units of government.
Agency Contact Person
Lee Boushon
Chief Public Water Supply Section
Phone: (608) 266-0857
Notice of Hearing
Public Instruction
NOTICE IS HEREBY GIVEN That pursuant to ss.
121.91 (4) (o) 1. and
227.11 (2) (a), Stats., the Department of Public Instruction will hold a public hearing to consider emergency and proposed permanent rules to create Chapter
PI 15, relating to revenue limit exemptions for energy efficiencies.
Hearing Information
The hearing will be held as follows:
Date and Time Location
November 9, 2009 Madison
3:00 - 4:00 p.m. GEF 3 Building
125 South Webster St.
Room 041
The hearing site is fully accessible to people with disabilities. If you require reasonable accommodation to access any meeting, please call David Carlson, Director, School Financial Services, (608) 266-6968 or leave a message with the Teletypewriter (TTY) at (608) 267-2427 at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided under the Americans with Disabilities Act.
Copies of Proposed Rule and Contact Person
Lori Slauson
Administrative Rules and Federal Grants Coordinator
Department of Public Instruction
125 South Webster Street — P.O. Box 7841
Madison, WI 53707
Written comments on the proposed rules received by Ms. Slauson at the above mail or email address no later than November 13, 2009, will be given the same consideration as testimony presented at the hearing.
Analysis Prepared by the Department of Public Instruction
Statute interpreted
Statutory authority
Explanation of agency authority
Section
121.91 (4) (o) 1., Stats., requires the department to promulgate rules to implement s.
121.91 (4) (o) 1., Stats., including eligibility standards for school districts that wish to increase their revenue limit by the amount spent in that school year on energy efficiency measures, and renewable energy products, that result in the avoidance of, or reduction in, energy costs.
Section
227.11 (2) (a), Stats., gives an agency rule-making authority to interpret the provisions of any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute.
Related statute or rule
N/A
Plain language analysis
2009 Wisconsin Act 28, the 2009-11 biennial budget bill, created a revenue limit exemption that allows a school district to increase its revenue limit by the amount spent by the school district in that school year on energy efficiency measures, and renewable energy products, that result in the avoidance of, or reduction in, energy costs.
The proposed rule establishes eligibility standards and procedures for school districts to follow when implementing revenue limit exemptions for energy efficiency measures. Specifically, school boards of the school districts are required to:
•
Identify the specific new expenditures.
•
Identify the performance indicators to measure the cost savings as a result of the expenditures.
•
Identify the period of time in which the expenditure will be recovered by the cost savings.
•
Pass a resolution with specified information by November 1 in the school year in which a tax is to be levied for the expenditure.
•
Submit a copy of the resolution to the department within two weeks of passage.
•
Levy the amount specified in the resolution when establishing its tax levies.
•
Incur the expenditure authorized in its resolution.
•
No later than two weeks following the date of the school district's budget hearing, submit to the department specified contents of the addendum to the school district's published budget summary.
•
Reduce the school district's following year's revenue limit by the amount of any additional revenue received as a result of the exemption and by the amount levied for which there is not a documented energy expenditure, if any.
•
Prohibit any additional revenue received by a school district from being included in the base for determining the school district's revenue limit for the succeeding school year.
In addition, the department is required to:
•
Post on its website all the resolutions received by school districts.
•
Adjust a school district's revenue limit to include the levy amount specified in the resolution.
•
Post on its website the addendum contents received by school districts.
•
Reduce a school district's revenue limit for the following year by the amount of any additional revenue received as a result of the exemption.
•
Reduce the school district's revenue limit for the following year by an amount the school district levied for which there is no documented expenditure authorized under the exemption, if any.
Because November 6 (school district tax levy due date) is the deadline for determining revenue limits for the 2009-10 school year, emergency rules need to be in place by the fall of 2009.
Comparison with federal regulations
N/A
Comparison with rules in adjacent states
Illinois, Iowa, Michigan, and Minnesota do not have rules relating to revenue limits.
Summary of factual data and analytical methodologies
2009 Wisconsin Act 28 provided that a school district's revenue limit may be increased by the amount spent by the district in that school year on energy efficiency measures and renewable energy products that result in avoidance of, or reduction in, energy costs, beginning with revenue limits calculated in the 2009-10 school year. The department is required to promulgate rules to implement this provision, including standards and guidelines districts must meet to use this adjustment. The department is allowed to promulgate emergency rules without the finding of an emergency to implement this provision. A school board is required to adopt a resolution to increase its revenue limit under this provision. The adjustment is nonrecurring.
The rules focus on the process that school districts must use to request energy efficiency revenue limit exemptions and to ensure that the additional expenditure/taxing authority is offset with documented cost savings.
Analysis and supporting documents used to determine effect on small business
N/A
Anticipated costs incurred by private sector
N/A
Small Business Impact
The proposed rules will have no significant economic impact and are not anticipated to have a fiscal impact on small businesses, as defined in s.
227.114 (1) (a), Stats.
Fiscal Estimate
2009 Wis. Act 28 and the rules allow a school district to increase its revenue limit by the amount spent by the school district in that school year on energy efficiency measures and renewable energy products that result in the avoidance of, or reduction in, energy costs.
