Chapter NR 162

NR 162.003 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

subch. II of ch. NR 162 Subchapter II — Financial Assistance Requirements

NR 162.01 NR 162.01 Types of financial assistance available. The department and DOA may, subject to applicable requirements of ss. 281.58 and 281.59, Stats., and ch. Adm 35, provide to an eligible applicant for a scored project any of the following types of financial assistance unless the project reaches substantial completion more than 3 years prior to the date the applicant submits a complete application for financial assistance under s. NR 162.05 (4) or the applicant already has long-term affordable debt outstanding for a project that is already complete or has reached substantial completion prior to the application submittal date:

NR 162.01(1) (1) Subject to the limits established in s. NR 162.04 (3), the purchase or refinance of a municipality’s interim debt.

NR 162.01(2) (2) The guarantee of, or purchase of insurance for, municipal obligations for construction of a treatment works or BMP if the guaranteed or purchased insurance would improve credit market access or reduce interest costs on the municipal obligations.

NR 162.01(3) (3) Loans at or below the market interest rate.

NR 162.01(4) (4) Interest rate subsidies under subch. IV.

NR 162.01(5) (5) Using funds received as federal capitalization grants, any other type of assistance that is consistent with the federal program for state water pollution control revolving funds under 33 USC 1381 to 1387 or any other federal law providing funding for or otherwise relating to that program.

NR 162.01 Note Note: The language under sub. (5) and under s. 281.58 (6) (b) 9., Stats., allows the department to provide principal forgiveness as part of a financial assistance agreement in accordance with 33 USC 1383 (i) (1), which states, “In any case in which a State provides assistance to an eligible recipient under subsection (d), the State may provide additional subsidization, including forgiveness of principal.”

NR 162.01 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 162.02 NR 162.02 Annual funding policy, project priority list, and funding list.

NR 162.02(1) (1) Funding policy and project priority list. The department may produce an annual CWFP funding policy in conjunction with the fiscal year’s priority list established under s. NR 162.52. The funding policy may be in the form of the intended use plan and may describe methods for making funding determinations and other policies related to the fiscal year. When the department publishes a funding policy for a given year, it shall provide an opportunity for public comment regarding the funding policy.

NR 162.02(2) (2) Funding list. The department shall prepare a funding list of all CWFP-eligible applicants, including applications submitted under subchs. II to IV, when the amount available under s. 20.866 (2) (tc) or 281.59 (3e) (d) or (4) (f), Stats., is insufficient in accordance with s. 281.58 (9m) (f), Stats., and, for municipalities wishing to compete for principal forgiveness funds, when the department has principal forgiveness funds available to distribute in a year during which s. 281.58 (9m) (f), Stats., does not apply.

NR 162.02 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 162.03 NR 162.03 Project eligibility.

NR 162.03(1) (1) Traditional wastewater treatment plant and collection system projects. A municipality may receive financial assistance under this chapter for a publicly-owned wastewater treatment works scored project, including a treatment plant or sewage collection system project, that meets any of the following criteria:

NR 162.03(1)(a) (a) The project is necessary to prevent a municipality from significantly exceeding a wastewater effluent limitation contained in a permit issued under ch. 283, Stats. All of the following types of projects are included under this paragraph:

NR 162.03(1)(a)1. 1. Projects for which construction will completely take place inside the fence or on site of a wastewater treatment plant, such as projects to build or modify headworks, clarifiers, aeration basins, stabilization ponds, sludge processing equipment, sludge storage facilities, or on-site administrative buildings, and projects to build or modify facilities for the receiving, storage, or treatment of septage. The department may determine that a lift station pumping all of the wastewater flow directly to the wastewater treatment plant with no other influent pump at the plant site is part of a project that takes place inside the fence. The department may also determine, based on the layout and function of the treatment work, that other facilities, such as a septage receiving station that conveys the septage directly into the wastewater treatment plant, are considered part of the work inside the fence.

NR 162.03(1)(a)2. 2. Projects for which construction takes place outside of the fence of the wastewater treatment plant that are necessary to maintain or improve the integrity and performance of wastewater treatment works facilities serving the municipality, including sanitary sewer replacement or rehabilitation, sanitary sewer lining, publicly-owned lateral lining, lift station upgrades, and construction of new interceptors, lift stations, pretreatment facilities, septage receiving stations, and other treatment works facilities outside of the fence of the wastewater treatment plant.

NR 162.03(1)(b) (b) The project is necessary to achieve compliance with an enforceable wastewater requirement changed or established after May 17, 1988, if the municipality is in substantial compliance with its permit issued under ch. 283, Stats.

NR 162.03(1)(c) (c) The project is necessary to correct violations of an effluent limitation contained in a permit issued under ch. 283, Stats.

NR 162.03(1)(d) (d) The project is necessary to eliminate actual or imminent pollution of groundwater or surface water or a threat to human health in unsewered areas within a municipality. All of the following types of projects are included under this paragraph:

NR 162.03(1)(d)1. 1. Projects for construction of a new wastewater treatment plant or upgrade of an existing plant to accept and treat wastewater from a previously unsewered area, such as projects to build or add capacity to clarifiers, aeration basins, stabilization ponds, or sludge facilities.

NR 162.03(1)(d)2. 2. Sewage collection system projects to install sewer pipes where there were none and interceptors to carry wastewater to a new or existing wastewater treatment plant.

NR 162.03 Note Note: The projects described under this subsection are considered “traditional wastewater treatment plant and collection system projects” and are those that use common infrastructure and processes to collect and treat wastewater, including pipes to collect wastewater from homes and businesses and carry the water to a treatment plant that uses techniques and equipment to filter and settle out solids, aerate the water to encourage natural processes of growth of bacteria and other organisms to consume much of the waste, disinfect the processed water, and process the sludge removed from the wastewater. Traditional projects tend to collect and treat point-source pollution only, unless storm sewers contribute to the flow of water to the wastewater treatment plant or the system has infiltration or inflow problems. The purpose of some traditional projects is to fix these types of excess flow issues. Traditional wastewater treatment is discussed in the Primer for Municipal Wastewater Treatment Systems, Publication EPA 832-R-04-001, dated September 2004, available on the U.S. environmental protection agency’s website at https://www.epa.gov/sites/default/files/2015-09/documents/primer.pdf.

NR 162.03(2) (2) Individual wastewater treatment systems.

NR 162.03(2)(a) (a) A project that is eligible under sub. (1) may consist of individual systems that serve one or more properties for the purpose of treating sanitary waste if the municipality meets all of the following criteria:

NR 162.03(2)(a)1. 1. The municipality owns each individual system.

NR 162.03(2)(a)2. 2. The municipality is responsible for the proper installation, operation, and maintenance of each individual system.

NR 162.03(2)(a)3. 3. The municipality has unlimited access to each individual system at all reasonable times for the purposes of inspection, monitoring, construction, maintenance, operation, rehabilitation, and replacement of the system.

NR 162.03(2)(a)4. 4. The municipality establishes a comprehensive program for the regulation, inspection, operation, and maintenance of individual systems, and for monitoring the impact of the systems on groundwater where required by the department.

NR 162.03(2)(a)5. 5. The municipality complies with all other applicable requirements, limitations, and conditions for projects funded under this chapter.

NR 162.03(2)(b) (b) The access required under par. (a) 3. shall be established through easements, covenants running with the land, or local ordinance. The department may require that the program established under par. (a) 4. include periodic testing of water from existing potable water wells and monitoring of aquifers in the area.

NR 162.03(2)(c) (c) Individual wastewater treatment systems include cluster systems, mound systems, holding tanks, septic tanks, pipes to transport wastewater, and other alternative systems for small communities.

NR 162.03(3) (3) Storm water projects. A municipality may receive financial assistance under this chapter in accordance with subch. III or IV for a publicly owned project that is necessary to control storm water runoff pollution in order to achieve water quality standards.

NR 162.03(4) (4) Ineligible projects. The department may determine that an entire project or a portion of a project is ineligible for CWFP financial assistance. If the department determines that a portion of a project is ineligible, it shall specifically identify the ineligible portion and the associated costs, or prorate the amount of financial assistance provided to reflect the appropriate proportion of eligible to ineligible project costs, or both, in the financial assistance agreement. All of the following types of projects or portions of projects are not eligible for financial assistance under this chapter:

NR 162.03(4)(a) (a) Projects of a municipality that is failing to substantially comply with conditions or requirements of s. 281.58 or 281.59, Stats., ch. Adm 35, ch. NR 162, an existing financial assistance agreement or interest rate subsidy agreement with the CWFP, a financial assistance agreement with the safe drinking water loan program under s. 281.61, Stats., or the terms of a federal or state grant used to pay the costs to plan, design, or construct a treatment works or BMP.

NR 162.03(4)(b) (b) As specified in s. 281.58 (8) (a) 2., Stats., privately-owned connection laterals and sewer lines that transport wastewater from structures to municipally-owned or privately-owned wastewater systems.

NR 162.03(4)(c) (c) Public sanitary sewer mains, interceptors, and individual systems that exclusively serve development not in existence as of the date the department receives an application submitted by a municipality under this chapter.

NR 162.03(4)(d) (d) Any project from which no construction costs are to be funded through the CWFP, unless another governmental agency is providing financing for the construction costs and the department receives acceptable documentation of the other agency’s commitment, as determined by the department, except if purchasing existing treatment works is the general scope of the project.

NR 162.03(4)(e) (e) Dams, pipes, conveyance systems, and BMPs, including storm sewer rerouting and land acquisition, when intended solely for drainage and flood control.

NR 162.03(4)(f) (f) Any project of an unsewered municipality that will be disposing of wastewater in the treatment works of another municipality and the unsewered municipality has not executed an intermunicipal agreement under s. 66.0301, Stats., with the other municipality to receive, treat, and dispose of the wastewater of the unsewered municipality.

NR 162.03(4)(g) (g) Any project that includes 2 or more municipalities that utilize shared or interconnected treatment works or a BMP, unless the municipalities served by the project execute an intermunicipal agreement that meets the requirements described in s. NR 162.05 (4) (h). This paragraph does not apply to a metropolitan sewerage district in which all municipalities being served have been annexed into the sewerage district or to a situation in which the intermunicipal exception under s. NR 162.05 (5) has been met.

NR 162.03(4)(h) (h) Projects that have been substantially complete for 3 years or longer.

NR 162.03 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23; correction in (1) (a) 1. made under s. 35.17, Stats., Register October 2023 No. 814.

NR 162.04 NR 162.04 Cost eligibility.

NR 162.04(1) (1) Eligible costs.

NR 162.04(1)(a) (a) Eligible at a subsidized rate. Allocable project-specific costs that are necessary and reasonable are eligible for financial assistance. Eligible costs include expenses incurred by the municipality for any of the following items and activities when specific to the scope of a scored project, or when approved by the department as necessary and reasonable for the efficient operation or integrity of the overall treatment works:

NR 162.04(1)(a)1. 1. ‘Abandonment.’ Abandonment of treatment works if approved in the plans and specifications of a scored project or by department staff, including activities such as demolition, re-landscaping, and removal and disposal of municipal waste or other debris.

NR 162.04(1)(a)2. 2. ‘Access roads.’ Construction of roadways necessary to provide appropriate access to facilities such as lift stations and treatment plants.

NR 162.04(1)(a)3. 3. ‘Acquisition of facilities.’ Costs associated with acquiring facilities of an existing treatment works if the municipality will own, operate, and maintain the facilities throughout the term of the financial assistance agreement.

NR 162.04(1)(a)4. 4. ‘Administrative buildings and equipment.’ Buildings, offices, and office equipment and furnishings used for purposes of operating a treatment works, such as administration and storage buildings, if included in the approved plans and specifications or otherwise approved by department staff. The department may prorate costs for buildings, offices, and office equipment and furnishings that are partially used for purposes not related to the treatment works.

NR 162.04(1)(a)5. 5. ‘Administrative costs of a commission.’ Administrative, legal, and other costs incurred by a commission solely for the scored project if identifiable in a contract or agreement between the member municipalities.

NR 162.04(1)(a)6. 6. ‘Compliance with state and federal requirements.’ Costs incurred for activities associated with complying with state and federal requirements related to the scored project.

NR 162.04 Note Note: Federal and state requirements may include any of the following: Americans with Disabilities Act design and construction; green project reserve documentation; Davis-Bacon and Related Acts administration as required under Section 513 of the Federal Water Pollution Control Act 33 USC 1372 or other activities associated with wage rate requirements; DBE solicitation and documentation; activities associated with the use of products made in the United States; environmental review of project sites and other activities related to ch. NR 150 compliance, including costs of public notices and hearings; historical, architectural, archaeological, and cultural resources work identified during planning, design, or construction of the project and incurred prior to project closeout; signage requirements, including on a website or at a wastewater treatment facility or project site; audit activities related to the federal single audit act portion of the municipality’s annual audit report until the project is complete.

NR 162.04(1)(a)7. 7. ‘Construction activities.’ Activities defined in s. NR 162.003 (16) and included in construction contracts or performed as force account work, including any of the following:

NR 162.04(1)(a)7.a. a. Replacing, repairing, or rehabilitating a treatment works if identified in the plans and specifications as cost-effective and necessary.

NR 162.04(1)(a)7.b. b. Restoring streets and rights-of-way and repairing damage to items such as pavement, sidewalks, watermains, and storm sewers necessary as a direct result of construction of the scored project.

NR 162.04(1)(a)7.c. c. Punch list item activities.

NR 162.04(1)(a)7.d. d. Acquiring, consuming, or expending materials.

NR 162.04(1)(a)7.e. e. Obtaining products that comply with federal requirements to use products made in the United States in CWFP projects.

NR 162.04(1)(a)7.f. f. Other capital costs incurred solely for purposes of the scored project.

NR 162.04(1)(a)8. 8. ‘Demolition.’ Demolishing existing structures if the demolition is part of a scored project and any of the following applies:

NR 162.04(1)(a)8.a. a. The existing structure is part of the wastewater treatment works.

NR 162.04(1)(a)8.b. b. The demolition is necessary for site preparation.

NR 162.04(1)(a)8.c. c. The demolition is included in abandonment procedures as approved in the plans and specifications of the scored project or when otherwise approved by department staff.

NR 162.04(1)(a)8.d. d. The demolition entails removal of equipment or materials, or both, from inside an existing building or other structure that is part of the treatment works being modified or repurposed as part of the scored project.

NR 162.04(1)(a)9. 9. ‘Discharge monitoring.’ The cost of equipment owned or to be owned by the municipality for monitoring, sampling, and analyzing industrial discharges to a municipal wastewater treatment works.

NR 162.04(1)(a)10. 10. ‘Easements and rights-of-way.’ Acquisition of easements and rights–of–way, including purchase cost and administrative and legal expenses.

NR 162.04(1)(a)11. 11. ‘Equipment.’ Equipment related to the scored project, the costs of which the department may prorate if the municipality intends to use the equipment for multiple purposes rather than solely for the treatment works. Eligible equipment includes any of the following:

NR 162.04(1)(a)11.a. a. Mobile equipment, such as portable stand-by generators, portable emergency pumps, and grounds and maintenance equipment for mowing and snow removal, for the treatment works.

NR 162.04(1)(a)11.b. b. Spare parts if included in the plans and specifications or otherwise approved by the department.

NR 162.04(1)(a)11.c. c. Machinery for manufacturing or repairing necessary tools or equipment for the treatment works.

NR 162.04(1)(a)11.d. d. Computers, tablets, and related equipment, including purchasing, installing, programming, or upgrading computers, printers, control systems, and other computer-related equipment necessary for operating and maintaining the treatment works. Equipment and systems for accounting, billing, public notification, testing, monitoring, reporting, emergency alerts, communications, geographic information, and supervisory control and data acquisition are included under this subd. 11. d.

NR 162.04(1)(a)12. 12. ‘Fees.’ Fees paid by the municipality for any of the following:

NR 162.04(1)(a)12.a. a. Permits obtained for construction, including building, electrical, and plumbing permits, pit or trench dewatering permits, construction site storm water permits, and railroad crossing permits.

NR 162.04 Note Note: Permit fees are not required by the department for waterway projects authorized under ch. 30, Stats., that are funded in whole or in part by any federal or state agency. Therefore, if a municipality at the time of purchase of a permit under ch. 30, Stats., pays a fee for the permit due to not identifying the project as being funded with state or federal funds, the fee is not eligible for reimbursement by the CWFP.

NR 162.04(1)(a)12.b. b. Legal fees of an attorney that is not an on-staff municipal attorney, including costs of legal reviews of architectural, engineering, or construction contracts, user charge systems and sewer use ordinances, management plans, intermunicipal agreements, and legal work necessary for securing eligible permits.

NR 162.04(1)(a)12.c. c. Service fees paid to a state or federal agency, except administrative fees paid annually along with principal and interest payments on a CWFP loan.

NR 162.04(1)(a)13. 13. ‘Groundwater monitoring.’ Installing groundwater monitoring equipment or facilities.

NR 162.04(1)(a)14. 14. ‘Insurance.’ Purchasing insurance necessary during construction of the scored project, including property, liability, builder’s risk, and construction insurance.

NR 162.04(1)(a)15. 15. ‘Interim debt.’ Costs associated with interim debt for the scored project as delineated in sub. (3).

NR 162.04(1)(a)16. 16. ‘Laboratories.’ Laboratory equipment related to initial setup or a significant upgrade or expansion of an on-site laboratory if requested in the financial assistance application.

NR 162.04(1)(a)17. 17. ‘Land acquisition.’ Acquiring land, including purchase cost and administrative and legal expenses if any of the following applies:

NR 162.04(1)(a)17.a. a. The land will be used for storage of treated wastewater in land treatment systems before land application.

NR 162.04(1)(a)17.b. b. The land will be used for composting or temporary storage of compost residues that result from wastewater treatment if the department has approved a program for use of the compost.

NR 162.04(1)(a)17.c. c. The land is property on which the wastewater treatment works, biosolids facility, or lift stations will be located.

NR 162.04(1)(a)17.d. d. The land will serve to isolate a treatment facility as required under s. NR 110.15 (3) (d).

NR 162.04(1)(a)17.e. e. The land will be used for sludge spreading.