(e) The department may expend, for financial assistance in a biennium other than financial hardship assistance under s. 144.241 281.58 (13) (e), an amount up to 85% of the amount approved by the legislature under par. (d). The department may expend such amount only from the percentage of the amount approved under par. (d) that is not available under par. (f) for financial hardship assistance.

(f) The department may expend, for financial hardship assistance in a biennium under s. 144.241 281.58 (13) (e), an amount up to 15% of the amount approved by the legislature under par. (d) for that biennium. The department may expend such amount only from the percentage of the amount approved by the legislature under par. (d) that is not available under par. (e) for financial assistance.

(j) No later than November 1 of each odd-numbered year, the department of administration and the department jointly shall submit a report, to the building commission and committees as required under par. (bm), on the implementation of the amount established under par. (d) as required under s. 144.241 281.58 (9m) (e), and on the operations and activities of the clean water fund program for the previous biennium.

(9) (a) A loan approved under this section and s. 144.241 281.58 shall be for no longer than 20 years, as determined by the department of administration, be fully amortized not later than 20 years after the original date of the note, and require the repayment of principal and interest, if any, to begin not later than 12 months after the expected date of completion of the project that it funds, as determined by the department of administration.

(am) The department of administration, in consultation with the department, may establish those terms and conditions of a financial assistance agreement that relate to its financial management, including what type of municipal obligation, as set forth under s. 66.36, is required for the repayment of the financial assistance. Any terms and conditions established under this paragraph by the department of administration shall comply with the requirements of this section and s. 144.241 281.58. In setting such terms and conditions, the department of administration may consider factors that the department of administration finds are relevant, including the type of municipal obligation evidencing the loan, the pledge of security for the municipal obligation and the municipality's creditworthiness.

(b) (intro.) As a condition of receiving financial assistance under this section and s. 144.241 281.58, a municipality shall do all of the following:

1. Pledge the security, if any, required by the rules promulgated by the department of administration under this section and s. 144.241 281.58.

(11) (a) The department of natural resources and the department of administration may enter into a financial assistance agreement with a municipality for which the department of administration has allocated subsidy under s. 144.241 281.58 (9m) if the municipality meets the conditions under sub. (9) and s. 144.241 281.58 (14) and the other requirements under this section and s. 144.241 281.58.

(b) If a municipality fails to make a principal repayment or interest payment after its due date, the department of administration shall place on file a certified statement of all amounts due under this section and s. 144.241 281.58. After consulting the department, the department of administration may collect all amounts due by deducting those amounts from any state payments due the municipality or may add a special charge to the amount of taxes apportioned to and levied upon the county under s. 70.60. If the department of administration collects amounts due, it shall remit those amounts to the fund to which they are due and notify the department of that action.

(c) The department of administration may retain the last payment under a financial assistance agreement until the department of natural resources and the department of administration determine that the project is completed and meets the applicable requirements of this section and s. 144.241 281.58 and that the conditions of the financial assistance agreement are met.

(12) Municipal obligations. The department of administration may purchase or refinance obligations specified in s. 144.241 281.58 (6) (b) 1. or 2. and guarantee or purchase insurance for municipal obligations specified in s. 144.241 281.58 (6) (b) 3. if the department of administration and the department of natural resources approve the financial assistance under this section and s. 144.241 281.58.

(13) (a) 1. Notwithstanding any other provision of this section and s. 144.241 281.58, a municipality that submits to the department by January 2, 1989, a facility plan meeting the requirements of s. 144.24 281.57 which is approvable under this chapter and that does not receive a grant award before July 1, 1990, only because the municipality is following a schedule contained in the facility plan and approved by the department and the municipality is in compliance with all applicable schedules contained in a permit issued under ch. 147 283 or because there are insufficient grant funds under s. 144.24 281.57, is eligible to receive financial assistance under this paragraph. The form of the financial assistance is a loan with an interest rate of 2.5% per year except that s. 144.241 281.58 (8) (b), (f) and (k) applies to projects receiving financial assistance under this paragraph.

2. Notwithstanding any other provision of this section or s. 144.241 281.58, the department shall make all loans under subd. 1. to municipalities ready to construct treatment works before the department provides or approves any other financial assistance under this section except for loans under par. (b).

(b) 1. (intro.) Notwithstanding any other provision of this section or s. 144.241 281.58, an unsewered municipality is eligible to receive financial assistance under this paragraph, in the form of a loan with an interest rate of 2.5% per year, which may be for original financing or refinancing for a collection system that is ineligible for financial assistance under s. 144.24 281.57 because of s. 144.24 281.57 (4) (b) 1. and that is being connected to an existing wastewater treatment plant if all of the following apply:

a. The municipality applies to the department for financial assistance under s. 144.24 281.57 (5) for a construction project during 1988.

b. Before January 1, 1989, the department issues a notice under s. 144.24 281.57 (6) that the department is ready to allocate funds to the municipality for the project.

d. The municipality receives a grant under s. 144.24 281.57 for the construction of the project from the list developed by the department under s. 144.24 281.57 (6) (a) for applications received in 1988.

1m. (intro.) Notwithstanding any other provision of this section or s. 144.241 281.58, a town sanitary district is eligible to receive financial assistance under this paragraph, in the form of a loan with an interest rate of 2.5% per year, for the extension of a collection system into an unsewered area that is added to the sanitary district if all of the following apply:

a. The department has awarded a grant to the town sanitary district under s. 144.24 281.57 (4) (b) 1. c. for a collection system.

2. Section 144.241 281.58 (8) (b), (f) and (k) applies to projects receiving financial assistance under this paragraph.

3. Notwithstanding any provision of this section or s. 144.241 281.58, the department shall annually allocate funds for loans under subds. 1. and 1m before the department provides or approves any other financial assistance under this section or s. 144.241 281.58.

(13m) Legislative moral obligation. The building commission may, at the time the loan is made, by resolution designate a loan made under this section and s. 144.241 281.58 as one to which this subsection applies. If at any time the payments received or expected to be received from a municipality on any loan so designated are pledged to secure revenue obligations of the state issued pursuant to subch. II of ch. 18 and are insufficient to pay when due principal of and interest on such loan, the department of administration shall certify the amount of such insufficiency to the secretary of administration, the governor and the joint committee on finance. If the certification is received by the secretary of administration in an even-numbered year before the completion of the budget under s. 16.43, the secretary of administration shall include the certified amount in the budget compilation. In any event, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so requested for the purpose of payment of the revenue obligation secured thereby. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make the appropriation.

(13s) Powers. The department of administration may audit, or contract for audits of, projects receiving financial assistance under this section and s. 144.241 281.58.

(14) Rules. The department of administration shall promulgate rules that are necessary for the proper execution of this section and of its responsibilities under s. 144.241 281.58.

281.63 (4) (a) Eligible municipalities. Only a municipality with a sewerage system which is violating ch. 147 283 or title III of the federal act because of combined sewer overflow is eligible to receive financial assistance under the combined sewer overflow abatement financial assistance program.

(6) Priority. Each municipality shall notify the department of its intent to apply for financial assistance under the combined sewer overflow abatement financial assistance program. For those municipalities that notify the department of their intention to apply for financial assistance under this program by December 31, the department shall establish annually a priority list which ranks these projects in the same order as they appear on the list prepared under s. 144.24 281.57 (6) (a).

281.65 (2) (a) “Best management practices" means practices, techniques or measures, except for dredgings, identified in areawide water quality management plans, which are determined to be the most effective means of preventing or reducing pollutants generated from nonpoint sources, or from the sediments of inland lakes polluted by nonpoint sources, to a level compatible with water quality objectives established under this section and which do not have an adverse impact on fish and wildlife habitat. The practices, techniques or measures include land acquisition, storm sewer rerouting and the removal of structures necessary to install structural urban best management practices, facilities for the handling and treatment of milkhouse wastewater, repair of fences built using grants under this section and measures to prevent or reduce pollutants generated from mine tailings disposal sites for which the department has not approved a plan of operation under s. 144.44 (3) 289.30.