281.58(7)(a)(a) The department shall, by rule, establish criteria for determining which applicants and which projects are eligible to receive financial assistance under the clean water fund program. The primary criteria for eligibility shall be water quality and public health. The rules for clean water fund projects funded from the account under
s. 25.43 (2) (a) shall be consistent with
33 USC 1251 to
1376 and
33 USC 1381 to
1387 and the regulations promulgated thereunder. The rules for clean water fund projects funded from the account under
s. 25.43 (2) (b) may be consistent with
33 USC 1251 to
1376 and
33 USC 1381 to
1387 and the regulations promulgated thereunder.
281.58(7)(b)
(b) The department may determine whether a municipality is eligible for financial assistance under the clean water fund program for any of the following types of projects:
281.58(7)(b)1.
1. Projects that the department determines are necessary to prevent a municipality from significantly exceeding an effluent limitation contained in a permit issued under
ch. 283.
281.58(7)(b)2.
2. Projects needed to provide treatment to achieve compliance with an enforceable requirement changed or established after May 17, 1988, if the project is for a municipality that is in substantial compliance with its permit, issued under
ch. 283, in regard to the changed or established enforceable requirements.
281.58(7)(b)5.
5. Projects for the treatment of nonpoint source pollution and urban storm water runoff.
281.58(7)(b)6.
6. Projects for the planning, design, construction or replacement of treatment works that violate effluent limitations contained in a permit issued under
ch. 283.
281.58(8)
(8) Ineligibility for and limitations on financial assistance. 281.58(8)(a)(a) The following are not eligible for financial assistance from the clean water fund program:
281.58(8)(a)1.
1. A person or municipality that has failed to substantially comply, as specified by the rules promulgated under
sub. (2), with the terms of a federal or state grant or loan used to pay the costs of studies, investigations, plans, designs or construction associated with wastewater collection, transportation, treatment or disposal or used to pay the cost of studies, investigations, plans, designs or construction associated with implementing a nonpoint source control management program.
281.58(8)(a)2.
2. Connection laterals and sewer lines that transport wastewater from structures to municipally owned or individually owned wastewater systems.
281.58(8)(a)3.
3. Public sanitary sewer mains, interceptors and individual systems which exclusively serve future development.
281.58(8)(a)4.b.
b. The portion of a project funded under
s. 281.59 (13) relating to a collection system, even if the costs relating to the collection system were not eligible under
s. 281.57.
281.58(8)(a)5.
5. During fiscal years 1989-90 to 1994-95, a person or municipality in violation of an effluent limitation contained in a permit issued under
ch. 283, unless that person or municipality is eligible under
s. 281.59 (13).
281.58(8)(b)1.1. Except as provided in
subd. 2. and
par. (k), the amount of reserve capacity for a project eligible for financial assistance through a method specified under
sub. (6) (b) is limited to that future capacity required to serve the users of the project expected to exist within the service area of the project 10 years after the project is estimated to become operational. The department, in consultation with the demographic services center in the department of administration under
s. 16.96, shall promulgate rules defining procedures for projecting population used in determining the amount of reserve capacity.
281.58(8)(b)2.
2. Except as provided in
par. (k), the department may not determine that a municipality is eligible for financial assistance through a method specified under
sub. (6) (b) for reserve capacity for a collection system, interceptors or an individual system project in an unsewered municipality.
281.58(8)(c)
(c) Except as provided in
par. (k), financial assistance may be provided for the design, planning and construction of a collection system, interceptor or individual system project in an unsewered municipality or an unsewered area of a municipality, only if the department finds that at least two-thirds of the initial flow will be for wastewater originating from residences in existence on October 17, 1972.
281.58(8)(d)
(d) An unsewered municipality that is not constructing a treatment work and will be disposing of wastewater in the treatment work of another municipality is not eligible for financial assistance under the clean water fund program until it executes an agreement under
s. 66.0301 with another municipality to receive, treat and dispose of the wastewater of the unsewered municipality.
281.58(8)(e)
(e) Financial assistance may be provided to a municipality for a project only if the financial assistance is used for a project that is the most cost-effective alternative for the municipality without regard to financial assistance from the federal government and this state.
281.58(8)(f)
(f) Except as provided in
par. (k), the department may not determine that a municipality is eligible for financial assistance through a method specified under
sub. (6) (b) for the portion of a project that treats wastes from industrial users.
281.58(8)(g)
(g) The sum of all of the financial assistance to a municipality approved under the clean water fund program for a project may not result in the municipality paying less than 30% of the cost of the project.
281.58(8)(h)
(h) Except as provided in
par. (k), a municipality that is a violator of an effluent limitation at the time that the application for a treatment work project is approved under
sub. (9m) may not receive financial assistance of a method specified under
sub. (6) (b) 1.,
3.,
4. or
5. for that part of the treatment work project that is needed to correct the violation. This paragraph does not apply to a municipality that after May 17, 1988, is in compliance with a court or department order to correct a violation of the enforceable requirements of its
ch. 283 permit, and that is applying for financial assistance under
s. 281.59 (13) to correct that violation.
281.58(8)(i)
(i) After June 30, 1991, no municipality may receive for projects in a biennium an amount that exceeds 35.2% of the amount approved by the legislature under
s. 281.59 (3e) (b) for that biennium.
281.58(8)(j)
(j) The amount of a payment under
sub. (6) (b) 8. may not exceed the amount of subsidy necessary to reduce the interest rate on the loan from market rate to the interest rate that would have been charged on a loan to the municipality under
sub. (6) (b) 4.
281.58(8)(k)
(k) The restrictions specified under
par. (b) 1. and
2.,
(c),
(f) or
(h) do not apply to any of the following methods of financial assistance:
281.58(8)(k)2.
2. A purchase or refinancing of an obligation at fair market value and at the market interest rate.
281.58(8)(k)3.
3. A guarantee or a purchase of insurance for a municipal obligation which will permit the municipality credit market access not otherwise available or which will reduce the interest rate on the obligation to not less than the market rate.
281.58(8e)
(8e) Priority. The department shall establish a priority list in accordance with
33 USC 1381 to
1387 which ranks each project. The ranking on the priority list shall be based on all of the following:
281.58(8e)(b)
(b) The impact of the project on groundwater and surface water quality.
281.58(8e)(cm)
(cm) A factor that gives higher priority than would otherwise be given to a project to serve more than one municipality if all of the following apply:
281.58(8e)(cm)1.
1. Each municipality to be served by the project has a population of 2,500 or less.
281.58(8e)(cm)2.
2. At least one of the municipalities to be served by the project has a wastewater treatment system that is unusable because of failures of the system.
281.58(8e)(cm)3.
3. The municipalities to be served by the project are submitting an application for a new joint treatment work.
281.58(8e)(cm)4.
4. At least one of the municipalities to be served by the treatment work has been ordered to upgrade a current system.
281.58(8m)(a)(a) A municipality shall submit notice to the department of its intent to apply for financial assistance under this section and
s. 281.59. A municipality shall submit the notice at least 6 months before the beginning of the fiscal year in which it will request to receive financial assistance. The notice shall be in a form prescribed by the department and the department of administration.
281.58(8m)(c)
(c) The department may waive
par. (a) upon the written request of a municipality.
281.58(8s)
(8s) Facility plan. A municipality seeking financial assistance for a project under this section shall complete a facility plan as required by the department by rule.
281.58(9)(a)(a) After the department approves a municipality's facility plan submitted under
sub. (8s), the municipality shall submit an application for participation to the department. The application shall be in such form and include such information as the department and the department of administration prescribe and shall include design plans and specifications that are approvable by the department under this chapter. The department shall review applications for participation in the clean water fund program. The department shall determine which applications meet the eligibility requirements and criteria under
subs. (6),
(7),
(8),
(8m) and
(13).
281.58(9)(ae)
(ae) A municipality that submits an application under
par. (a) without design plans and specifications may obtain an initial determination of financial eligibility from the department of administration. The department of natural resources may not approve a municipality's application until the municipality submits approvable design plans and specifications.
281.58(9)(am)
(am) A municipality may not submit more than one application under
par. (a) for any single project in any 12-month period except that this paragraph does not apply to applications for financial assistance for additional costs of an approved project.
281.58(9)(b)
(b) A municipality seeking financial assistance for a project under the clean water fund program shall complete an environmental analysis sequence as required by the department by rule.
281.58(9)(c)
(c) If a municipality is serviced by more than one sewerage district for wastewater pollution abatement, each service area of the municipality shall be considered a separate municipality for purposes of obtaining financial assistance under the clean water fund program.
281.58(9)(d)
(d) The department of administration and the department jointly may charge and collect service fees, established by rule, which shall cover the estimated costs of reviewing and acting upon the application and servicing the financial assistance agreement. No service fee established by rule under this paragraph may be charged to or collected from an applicant for financial assistance under
s. 281.59 (13).
281.58(9)(e)
(e) If the governor's recommendation, as set forth in the executive budget bill, for the amount under
s. 281.59 (3e) (b), the amount available under
s. 20.866 (2) (tc) or the amount available under
s. 281.59 (4) (f) for a biennium is 85% or less of the amount of present value subsidy, general obligation bonding authority or revenue bonding authority, respectively, requested for that biennium in the biennial finance plan submitted under
s. 281.59 (3) (bm) 1., the department shall inform municipalities that, if the governor's recommendations are approved, clean water fund program assistance during a fiscal year of that biennium will only be available to municipalities that submit financial assistance applications by the June 30 preceding that fiscal year.
281.58(9)(f)
(f) The fees collected under
par. (d) shall be credited to the environmental improvement fund.
281.58(9m)
(9m) Acceptance of application; allocation of funding. 281.58(9m)(a)(a) Subject to
pars. (c) and
(d), the department shall approve an application after all of the following occur:
281.58(9m)(a)1.
1. The department determines that the project meets the eligibility requirements and criteria under
subs. (7),
(8),
(8m) and
(8s).
281.58(9m)(c)
(c) The department may approve an application under
par. (a) in a year only after the amount under
s. 281.59 (3e) (b) for the biennium in which that year falls has been approved by the legislature under
s. 281.59 (3e) (b).
281.58(9m)(d)
(d) The department may not approve an application under
par. (a) for a project that is not on the priority list under
sub. (8e).
281.58(9m)(e)1.1. Except as provided under
par. (f) and
sub. (13), if a sufficient amount of subsidy is available under
s. 281.59 (3e) (b) for the municipality's project, based on the calculation under
s. 281.59 (3e) (f), when the department approves the application under
par. (a), the department of administration shall allocate that amount to the project.
281.58(9m)(e)2.
2. If a sufficient amount of subsidy is not available under
s. 281.59 (3e) (b) for the municipality's project when the department approves the application under
subd. 1., the department shall place the project on a list for allocation when additional subsidy becomes available.
281.58(9m)(f)
(f) If the amount approved under
s. 281.59 (3e) (b), the amount available under
s. 20.866 (2) (tc) or the amount available under
s. 281.59 (4) (f) for a biennium is 85% or less of the amount of present value subsidy, general obligation bonding authority or revenue bonding authority, respectively, requested for that biennium in the biennial finance plan submitted under
s. 281.59 (3) (bm) 1., all of the following apply:
281.58(9m)(f)1.
1. The department shall establish a funding list for each fiscal year of the biennium that ranks projects of municipalities that submit financial assistance applications under
sub. (9) (a) no later than the June 30 preceding the fiscal year in the same order that they appear on the priority list under
sub. (8e).
281.58(9m)(f)2.
2. The department of administration shall allocate funding to projects in the order in which they appear on the funding list under
subd. 1.
281.58(9m)(fm)
(fm) The department, in consultation with the department of administration, shall promulgate, by rule, methods to establish deadlines for actions that must be taken by a municipality to which subsidy has been allocated. The methods may provide for extending deadlines under specified circumstances. If a municipality fails to meet a deadline, including any extension, the department of administration shall release the amount of subsidy allocated to the municipality's project.
281.58(9m)(g)
(g) In allocating subsidy under this subsection, the department of administration shall adhere to the amount approved by the legislature for each biennium under
s. 281.59 (3e) (b).
281.58(11)(a)(a) Except as provided in
par. (b), the department of administration shall specify the method by which financial assistance is to be provided for each approved application.
281.58(11)(b)
(b) For municipalities meeting the financial hardship assistance requirements under
sub. (13), the department of natural resources may approve financial hardship assistance.
281.58(12)(c)
(c) The department and the department of administration shall attempt to ensure all of the following:
281.58(12)(c)1.
1. That increases in all state water pollution abatement general obligation debt service costs do not exceed 4% annually.
281.58(12)(c)2.
2. That state water pollution abatement general obligation debt service costs are not greater than 50% of all general obligation debt service costs in any fiscal year.
281.58(12)(f)
(f) The department and the department of administration jointly may request the joint committee on finance to take action under
s. 13.101 (11) to modify the percentage of market interest rates established in
par. (a) 1. to
3.
281.58(13)(b)(b) A municipality with an application that is approved under
sub. (9m) is eligible for state financial hardship assistance for the project costs that are eligible under the clean water fund program, except for costs to which
sub. (8) (b),
(c),
(f) or
(h) applies, if the municipality meets all of the following criteria:
281.58(13)(b)1.
1. The median household income in the municipality is 80% or less of the median household income in this state.
281.58(13)(b)2.
2. The estimated total annual charges per residential user in the municipality that relate to wastewater treatment would exceed 2% of the median household income in the municipality without assistance under this subsection.
281.58(13)(be)
(be) A municipality with an application that is approved under
sub. (9m) is eligible for federal financial hardship assistance for the project costs that are eligible under the clean water fund program, except for costs to which
sub. (8) (b),
(c),
(f) or
(h) applies, if the municipality meets all of the following criteria:
281.58(13)(be)2.
2. The municipality is a rural community, as determined by the department.
