Chapter NR 162

NR 162.003 Note Note: Under s. 281.59 (1) (b), Stats., “market interest rate” means the effective interest rate on a fixed-rate revenue obligation issued by the state to fund a loan made under this section or, if the DOA determines that there has been a significant change in interest rates after the fixed-rate revenue obligation has been issued or if a fixed-rate revenue obligation has not been issued by the state to fund a loan made under this section, the effective interest rate that the DOA determines would have been paid if a fixed-rate revenue obligation had been issued on the date financial assistance is allotted.

NR 162.003(42) (42) “Median household income” has the meaning given in s. 281.58 (1) (cm), Stats.

NR 162.003 Note Note: Under s. 281.58 (1) (cm), Stats., “median household income” means median household income determined by the U.S. bureau of the census as adjusted by the department to reflect changes in household income since the most recent federal census.

NR 162.003(43) (43) “Minor civil division” means the primary governmental divisions of a county, including towns, as designated by the U.S. bureau of the census to collect and publish data.

NR 162.003(44) (44) “Minority business enterprise” or “MBE” means a DBE that is owned or controlled on a daily basis by one or more minority group members.

NR 162.003(45) (45) “Municipal separate storm sewer system” or “MS4” means a conveyance or system of conveyances, including roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, constructed channels, or storm drains, that meets all of the following criteria:

NR 162.003(45)(a) (a) Is owned or operated by a municipality.

NR 162.003(45)(b) (b) Is designed or used for collecting or conveying storm water.

NR 162.003(45)(c) (c) Is not a combined sewer conveying both wastewater and storm water.

NR 162.003(45)(d) (d) Is not part of a publicly owned wastewater treatment works that provides secondary or more stringent treatment.

NR 162.003(46) (46) “Municipal WPDES storm water discharge permit” means any permit issued to a municipality by the department under s. 283.33 (3), Stats., for the purpose of controlling storm water discharges from an MS4.

NR 162.003(47) (47) “Municipality” has the meaning given in s. 281.59 (1) (c), Stats.

NR 162.003 Note Note: Under s. 281.59 (1) (c), Stats., “municipality” means any city, town, village, county, county utility district, town sanitary district, public inland lake protection and rehabilitation district, metropolitan sewerage district, joint local water authority created under s. 66.0823, Stats., or federally recognized American Indian tribe or band in this state.

NR 162.003(48) (48) “New or changed WPDES permit limits” means an effluent limitation in a municipality’s most recent WPDES permit that is a completely new limit previously not included in the WPDES permit or is a change to a previous limit with which the municipality was already complying.

NR 162.003(49) (49) “Nonpoint source” has the meaning given in s. 281.65 (2) (b), Stats.

NR 162.003 Note Note: Under s. 281.65 (2) (b), Stats., “nonpoint source” means a land management activity that contributes to runoff, seepage, or percolation which adversely affects or threatens the quality of waters of this state and which is not a point source under s. 283.01 (12), Stats.

NR 162.003(50) (50) “Operations” means labor, materials, and chemicals used regularly, and work activities performed on a recurring basis throughout the year that are intended to meet routine, daily functional needs. Work activities may include any of the following:

NR 162.003(50)(a) (a) Operational maintenance activities related to continuing normal performance of the functions for which a treatment works or BMP asset or item of equipment is intended, including activities to keep building systems such as HVAC, lighting, and electrical utilities working properly.

NR 162.003(50)(b) (b) Custodial maintenance activities, such as housekeeping duties, rodent and pest control, and lawn mowing, associated with general day-to-day care and cleaning necessary to maintain constructed assets.

NR 162.003(50)(c) (c) Trash removal activities to dispose of hazardous and non-hazardous waste and debris and to recycle products such as paper, cans, and bottles.

NR 162.003(50)(d) (d) Snow and ice removal and activities to treat surfaces to eliminate unsafe weather-related conditions.

NR 162.003(50)(e) (e) Office activities related to billing, collections, customer communications, personnel, and other types of work activities that support the administration of the treatment works or BMP.

NR 162.003(50)(f) (f) Routine walk-through and other surveillance activities associated with identifying operational anomalies and ensuring all treatment works or BMP components are working as intended.

NR 162.003(51) (51) “Parallel cost percentage” means, for a scored project, the proportion of costs eligible for below–market rate financing, as delineated in s. NR 162.04 (1), relative to the total costs eligible for CWFP financing.

NR 162.003 Note Note: The calculation of the parallel cost percentage is described in s. NR 162.04 (1) (c).

NR 162.003(52) (52) “Performance standards” means nonagricultural performance standards established by the department in ch. NR 151, under s. 281.16 (2), Stats.

NR 162.003(53) (53) “Place” means a concentration of population either legally bounded as an incorporated place, such as a city or village, or identified as a census designated place by the U.S. bureau of the census.

NR 162.003(54) (54) “Plans and specifications” means project drawings and specification manuals for all construction work to be included in the financial assistance for the scored project.

NR 162.003(55) (55) “Population” means the most recent year’s final population estimate published by the DOA demographic services center for the city, town, or village that submitted priority evaluation and ranking information as required by the department. For a municipality other than a city, town, or village, “population” means the most recent population count or estimate done for the municipality and provided to the department by the municipality for purposes such as completing a sanitary survey or an estimate determined by multiplying the number of households served by the sanitary sewer system by the average household size in the area, as determined by the department.

NR 162.003(56) (56) “Priority score” means the numerical value determined by the department that is assigned to each project in accordance with s. NR 162.50.

NR 162.003(57) (57) “Professional services” means non-construction work provided under contract for the project, including engineering, archaeological, legal, financial, or technical services provided by a higher education institution or a formally certified member of a professional body, such as a trade association or organized profession.

NR 162.003(58) (58) “Project” means a set of activities intended to result, or that has resulted, in completed construction of wastewater related or storm water related facilities or practices.

NR 162.003(59) (59) “Project closeout” means the procedures described in s. NR 162.13 (4) for projects funded under subchs. II and III, and in s. NR 162.46 (4) for projects funded under subch. IV.

NR 162.003(60) (60) “Project completion date” means the earliest date on which all of the following apply:

NR 162.003(60)(a) (a) Construction of the scored project is complete.

NR 162.003(60)(b) (b) The department or its agents have certified that the scored project was constructed according to department-approved plans and specifications.

NR 162.003(60)(c) (c) The department or its agents have certified that the facilities are operating according to design.

NR 162.003(60)(d) (d) The project closeout is complete.

NR 162.003(60)(e) (e) The department has notified the recipient that the scored project is complete.

NR 162.003(61) (61) “Proportional share” means the costs of the operation and maintenance of the treatment works or BMP shared equitably and proportionately among the users through a user charge system.

NR 162.003(62) (62) “Receiving municipality” means a municipality that owns a treatment works and accepts discharges from one or more other municipalities into its treatment works for treatment and disposal.

NR 162.003(63) (63) “Recipient” means any municipality or group of municipalities that has been awarded or has received financial assistance under ss. 281.58 and 281.59, Stats.

NR 162.003(64) (64) “Replacement” means obtaining and installing equipment, accessories, or appurtenances that are necessary during the useful life of the treatment works or BMP project funded through the CWFP to maintain or improve the capacity and performance levels for which the treatment works or BMP was designed and constructed.

NR 162.003(65) (65) “Residential user” means a structure or part of a structure, including a mobile home or individual apartment unit, that is used primarily as a home, residence, or sleeping place by one or more persons maintaining a common household and that uses a publicly owned treatment works. “Residential user” does not include an institutional, commercial, industrial, or governmental facility.

NR 162.003(66) (66) “Runoff” has the meaning given in s. NR 151.002 (40).

NR 162.003 Note Note: In s. NR 151.002 (40), “runoff” means storm water or precipitation, including rain, snow, ice melt, or similar water that moves on the land surface via sheet or channelized flow.

NR 162.003(67) (67) “Scored project” means a project for which the department reviewed the scope provided by the applicant and assigned a priority score based on the scope determined by the department to be eligible for financial assistance under a single CWFP project number.

NR 162.003(68) (68) “Septage” has the meaning given in s. 281.58 (1) (cv), Stats.

NR 162.003 Note Note: Under s. 281.58 (1) (cv), Stats., “septage” means the scum, liquid, sludge, or other waste in a septic tank, soil absorption field, holding tank, grease interceptor, privy, or other component of a private onsite wastewater treatment system.

NR 162.003(69) (69) “Sewage collection system” has the meaning given under s. NR 110.03 (28), and includes individual systems, such as septic tanks, holding tanks, mound systems, and cluster systems, if the individual systems meet the criteria established under s. NR 162.03 (2).

NR 162.003 Note Note: Under s. NR 110.03 (28), “sewage collection system” means the common sanitary sewers, interceptor sewers, and appurtenant equipment, such as lift stations, within a sewerage system which are primarily installed to receive wastewaters directly from facilities which convey wastewater from individual structures or from private property, and which include service connection “Y” fittings designed for connection with those facilities. The facilities which convey wastewater from individual structures, such as building sewers and private interceptor sewers, from private property to the public sanitary sewer, or its equivalent, are specifically excluded from the definition of “sewage collection system”; except that pumping units and pressurized lines for individual structures or groups of structures are included as part of a “sewage collection system” when such units are cost effective and are owned and maintained by the sewerage system owner.

NR 162.003(70) (70) “Sewer” means a sewage collection system or an MS4, a portion of a sewage collection system or MS4, or other pipes that carry water to a treatment facility.

NR 162.003(71) (71) “Sewer service area” means that area served by a wastewater treatment works, or an area for which an agreement has been reached for future wastewater service, or an area for which capacity is provided to allow disposal of septic tank or holding tank wastes.

NR 162.003(72) (72) “Storm water” has the meaning given in s. NR 216.002 (33).

NR 162.003 Note Note: Under s. NR 216.002 (33), “storm water” means runoff from precipitation, including rain, snow, ice melt, or similar water that moves on the land surface via sheet or channelized flow.

NR 162.003(73) (73) “Subscribing municipality” means a municipality that discharges or plans to discharge all or part of its wastewater or storm water to another municipality for treatment and disposal.

NR 162.003(74) (74) “Subsidy” means the amount provided by the environmental improvement fund to a recipient of CWFP financial assistance under ss. 281.58 and 281.59, Stats., for any of the following purposes:

NR 162.003(74)(a) (a) To reduce the interest rate of CWFP loans from market interest rate to a lower subsidized rate.

NR 162.003(74)(b) (b) To reduce the interest payments on eligible loans or portions of loans made by the BCPL.

NR 162.003(74)(c) (c) To forgive a portion of the principal of a CWFP loan.

NR 162.003(75) (75) “Substantial completion” means the date on which construction of the scored project is sufficiently complete in accordance with the contract documents so that the owner can occupy or utilize the scored project for its intended use.

NR 162.003(76) (76) “TSS” means total suspended solids.

NR 162.003(77) (77) “Treatment work” has the meaning given in s. 283.01 (18), Stats.

NR 162.003 Note Note: Under s. 283.01 (18), Stats., “treatment work” means any devices and systems used in the storage, treatment, recycling, and reclamation of municipal sewage or industrial waste of a liquid nature or necessary to recycle or reuse water at the most economical cost over the estimated life of the work, including intercepting sewers, outfall sewers, sewage collection systems, cooling towers and ponds, pumping, power and other equipment, and their appurtenances; extensions, improvements, remodeling, additions, and alterations thereof; elements essential to provide a reliable recycled supply such as standby treatment units and clear well facilities; and any works, including site acquisition of the land that will be an integral part of the treatment process or is used for ultimate disposal of residues resulting from such treatment. Additionally, “treatment work” means any other method or system for preventing, abating, reducing, storing, treating, separating, or disposing of municipal waste, including storm water runoff, or industrial waste, including waste in combined storm water and sanitary sewer systems. This definition of “treatment work” includes storm water BMPs for municipalities that are required to obtain a municipal WPDES storm water discharge permit under ch. 283, Stats., and other department-approved projects to reduce wastewater and storm water pollutants entering our waterways. This definition does not apply to nonpoint source projects funded under the department’s pilot projects program created under s. 281.58 (6) (b) 9. and (7) (b) 7., Stats.

NR 162.003(78) (78) “Treatment facility” means a structure or group of structures constructed and used for purposes of treating wastewater, including municipal biosolids, to reduce pollutants entering waters of the state.

NR 162.003(79) (79) “Unsewered municipality” means a municipality in which some or all of the residential areas lack a sewage collection system.

NR 162.003(80) (80) “Useful life” means one of the following:

NR 162.003(80)(a) (a) The period during which a treatment works operates, if the treatment work was constructed partially or wholly with U.S. environmental protection agency title II construction grants.

NR 162.003(80)(b) (b) The term of the financial assistance agreement for the project, if the treatment work was originally constructed partially or wholly with CWFP financing or financing other than that identified in par. (a).

NR 162.003(81) (81) “User charge” means a charge levied on users of a treatment work or BMP for the user’s proportional share of the cost of operation, maintenance, and replacement of the treatment work or BMP.

NR 162.003(82) (82) “User charge system” means a system of charges meeting requirements established in s. NR 162.07, and s. 281.58 (14) (b) 1. and 7., Stats., for projects funded under subch. II, or a set of minimum control measure programs described in s. NR 216.031 (2) (c) to (e) for projects funded under subch. III.

NR 162.003 Note Note: User charge system requirements for storm water utility districts may include a requirement for a system of charges.

NR 162.003(83) (83) “Wastewater” means a waste stream conveyed to a treatment works via a sewage collection system, including a combined sewer conveying both sanitary wastewater and storm water, or the sewage sludge or other byproducts of wastewater treatment trucked or discharged to another treatment facility, such as a biosolids facility, for additional treatment.

NR 162.003(84) (84) “Women business enterprise” or “WBE” means a DBE that is owned or controlled on a daily basis by a woman or women.

NR 162.003(85) (85) “WPDES permit” means a Wisconsin pollution discharge elimination system permit issued under ch. 283, Stats.

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.