3. Description of the existing policies relevant to the rule, new policies proposed to be included in the rule, and an analysis of policy alternatives:
Existing Policies
The department’s UCF Grant Program offers federally funded grants to Wisconsin towns, cities, villages, counties, tribal governments and not-for-profit organizations conducting projects in Wisconsin. The UCF Grant Program is regulated under subch. V of ch. NR 47, Wis. Admin. Code. The current rule requires a dollar for dollar match from the grantee, has a maximum award amount of $25,000, and allows advance payment of no more than 50% for not-for-profit grantees upon the awarding of the grant. New Policies Proposed
A requirement of the IRA funding is that any match waiver the department receives must be passed along to sub-grant recipients. These monies must also be used within 5 years of the department being awarded the grant.
The department proposes an emergency rule that eliminates the dollar for dollar match requirement, changes the maximum award amount, allows any grantee to request partial advance payment upon the awarding of the grant, and allows for annual reimbursement from the department to the grantee if the grant project is longer than one-year in duration. These changes will benefit Wisconsin communities by:
— Providing a match waiver will align with the requirements of the IRA funding. The department has received a match waiver from the FS for the IRA funds, which must be passed down to any sub-grant recipients. The match waiver will increase access to these monies by communities, tribal governments and not-for-profit organizations that may otherwise struggle to meet current grant match requirements.
— Increasing grant award amounts will fund larger scale projects, expanding its impact and reaching more rural and urban Wisconsin communities.
— Providing an advance payment of no more than 50% of the grant upon awarding to all grantees and allowing for annual reimbursements for multi-year projects will better assist in facilitating urban and community forestry projects across Wisconsin as some communities, tribal governments and not-for-profit organizations might otherwise not have funding resources to finance these activities in advance.
The proposed rule revisions will update the department’s UCF Grant Program to accommodate the influx of federal funding to better serve Wisconsin counties, cities, villages, towns, tribal governments, and not-for-profit organizations. The proposed rule changes will also benefit local businesses, Wisconsin citizens and establish partnerships with local organizations working to support Wisconsin urban and rural communities experiencing low tree canopy.
Policy Alternative
Do nothing. Local governments, tribal governments and not-for-profit organizations would miss out on the opportunity to apply for $4 million of federal funding for urban and community forestry activities because of the IRA requirement to pass the waiver of match through to sub-grantees. Additionally, it is unlikely that the department could administer $4 million within the 5-year award period of the federal grant if the maximum award amounts remained at $25,000.
4. Detailed explanation of statutory authority for the rule (including the statutory citation and language):
Subchapter V of ch. NR 47, Wis. Admin. Code, establishes procedures for the awarding and administering of grants to fund urban and community forestry projects. It consists of a state funded grant program, which is authorized by s. 23.097(1g), Wis. Stats., and funded by s. 20.370(5)(az), Wis. Stats., and a federally funded grant program, which is authorized under the Cooperative Forestry Assistance Act of 1978 (16 USC 2101 et seq.), as amended, and s. 23.09(2)(o), Wis. Stats. The purpose of this rule is to modify the provisions dealing with the federally funded urban and community forestry grants. In the event that making such changes impacts the state funded portion of the grant program, those statutory authorities are also referenced in this section. Under s. 23.097(1g), Wis. Stats., the department is directed to award grants to, “…counties, cities, villages, towns, and nonprofit organizations for up to 50 percent of the cost of tree management plans, tree inventories, brush residue projects, the development of tree management ordinances, tree disease evaluations, public education concerning trees in urban areas and other tree projects.” The statute also directs the department to promulgate rules to establish criteria for awarding such grants (s. 23.097(2), Wis. Stats.) Section 23.09(2), Wis. Stats., explicitly permits the department to “promulgate such rules . . . as it deems necessary to carry out the provisions and purposes of this section”. Section 23.09(2)(o), Wis. Stats., explicitly permits the department to “accept and administer any . . . grants . . including funds made available to the department by the federal government under any act of congress relating to any of the functions of the department.” Read together, this provision allows the department to promulgate rules to accept federal funds and administer a grant program according to the Cooperative Forestry Assistance Act of 1978(16 USC 2101 et seq.), as amended. The Cooperative Forestry Assistance Act of 1978 (16 USC 2101 et seq.), as amended, authorizes the Secretary of Agriculture to provide cooperative forestry assistance to states and others. It includes a range of state and private forestry program authorities, including sec. 9 (16 USC 2105) “urban and community forestry assistance.” Section 9 authorizes the Secretary of Agriculture to “provide financial, technical, and related assistance to state foresters or equivalent state officials for the purpose of encouraging states to provide information and technical assistance to units of local government and others that will encourage cooperative efforts to plan urban forestry programs and to plant, protect, and maintatin, and utilize wood from, trees in open spaces, greenbelts, roadside screens, parks, woodlands, curb areas, and residential developments in urban areas.” This program includes providing “assistance through competitive matching grants awarded . . . for urban and community forestry projects.” 5. Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
Employees will spend approximately 140 hours developing this rule.
6. List with description of all entities that may be affected by the proposed rule:
Eligible grant applicants including local governments (cities, villages, towns, counties), tribal governments, and 501(c)(3) not-for-profit organizations engaged in urban and community forestry activities.
Private businesses including urban and community forestry consulting businesses, private tree nurseries, arborists, and tree care businesses.
Wisconsin residents, businesses, and visitors who will benefit from increased investment in our state’s urban and community forest resource.
7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
All existing congressional authorities provided to the Urban and Community Forestry Assistance program established under section 9(c) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2105(c)) for tree planting and related activities are applicable. Excerpts from this section are included above. This proposed rule is not intended to be more or less stringent than the federal law but rather provides implementation details needed to administer the federal grant program. 8. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
There are many anticipated positive economic impacts ranging from advancing environmental equity in Wisconsin communities, creating jobs, and supporting local businesses’ and economies across Wisconsin. These grant funds will build green infrastructure, ensuring continued investment in urban forests throughout Wisconsin communities. Trees offer benefits to residents of communities of all sizes and locales, improving air quality and public health, reducing heat and heat illnesses, lowering utility bills, improving water quality and reducing flooding and stormwater runoff.
There are no negative economic impacts or costs to grantees associated with this rule, though there are ongoing maintenance costs associated with planting trees.
9. Anticipated number, month and locations of public hearings:
The department anticipates holding one virtual public hearing in the month of October, 2023.
The department will hold this hearing virtually to allow for attendance and engagement across the state.
