Chapter NR 162

PR3 . . . is the percentage of the project being financed by the CWFP that is eligible under s. NR 162.03 (1) (a) 1. and eligible for a zero percent interest rate under s. 281.58 (12) (a) 5., Stats.

NR 162.10(2)(c) (c) The interest rate shall be based on the market rate in effect at the time the municipality passes a bond resolution to secure the loan from the CWFP.

NR 162.10(2)(d) (d) The department shall determine median household income for purposes of determining the loan interest rate as established in s. 281.58 (12) (a) 1. a. to c., Stats., as follows:

NR 162.10(2)(d)1. 1. If the municipality is a place, as defined for purposes of data collection by the U.S. bureau of the census, including a city, village, or census designated place, or the municipality is a county or a minor civil division, the department shall obtain the most recent 5-year-data median household income figure published for the municipality by the U.S. bureau of the census prior to the department’s publishing of the annual project priority list.

NR 162.10 Note Note: The department uses U.S. bureau of the census municipal incomes as derived from the American Community Survey and published annually in the 5-year survey data. At the time of writing of this administrative code, the U.S. bureau of the census is not collecting income data during the decennial census. The U.S. bureau of the census does not publish data for all types of municipalities eligible for CWFP financial assistance.

NR 162.10(2)(d)2. 2. The department may require a municipality for which the U.S. bureau of the census does not publish median household income data to provide information to assist the department in determining a median household income for the municipality for purposes of this chapter. The information required and used by the department may include any of the following:

NR 162.10(2)(d)2.a. a. The number of residential users served by the municipality.

NR 162.10(2)(d)2.b. b. A map showing the municipal boundaries, and the number of residential users served by or the population of the municipality within each town or county for municipalities that cross town or county boundaries.

NR 162.10(2)(d)3. 3. If the municipality is a town sanitary district or public inland lake protection and rehabilitation district, the municipality may supply a median household income provided by the U.S. bureau of the census, along with documentation of how the median household income was determined. Whether the median household income is initially determined by the department or supplied by the municipality for the department’s approval, this median household income of the municipality shall be derived from the same ACS data release as that being used by the department for the fiscal year applicable to the funding cycle for which the application is submitted and shall be one of the following:

NR 162.10(2)(d)3.a. a. A median household income derived by requesting a custom tabulation of income data at the census block level from the ACS.

NR 162.10 Note Note: To obtain a custom tabulation, the municipality will likely need to compare a map showing the boundaries of the municipality to a census block map and determine which census blocks contain any portion of the municipality. The municipality would then submit the appropriate census block numbers to the U.S. bureau of the census (see https://www.census.gov/programs-surveys/acs/data/custom-tables.html) with a request for a custom tabulation of a median household income figure for that set of identified blocks only.

NR 162.10(2)(d)3.b. b. The median household income of the census tract or block group that encompasses the municipality. If the municipality falls within 2 or more census tracts or block groups, the median household income shall be weighted by the population of the municipality that resides within each census tract or block group.

NR 162.10(2)(d)3.c. c. The median household income of the minor civil division within which the municipality is located. If the municipality falls within 2 or more minor civil divisions, the median household income shall be weighted by the population of the municipality that resides within each minor civil division.

NR 162.10(2)(d)3.d. d. An average median household income calculated by: determining the published median household income of each member municipality if the applicant municipality, such as a sanitary district or metropolitan sewerage district, is made up of multiple municipalities, such as cities, villages, and census designated places; weighting each of those median household incomes by the percentage that the population of the individual municipality is of the total population; summing the individual weighted median household incomes; and dividing the sum by the total number of municipalities that are members of the applicant municipality.

NR 162.10(2)(d)4. 4. If the sewer service area of the treatment works within the boundaries of the municipality is different than the municipality’s boundaries, the municipality may choose to follow the custom tabulation procedure as described under subd. 3. a. and submit the result to the department to use in lieu of the median household income obtained by the department as described under subd. 1.

NR 162.10 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 162.11 NR 162.11 Financial assistance agreement conditions.

NR 162.11(1) (1) Each financial assistance agreement shall require the recipient to do all of the following:

NR 162.11(1)(a) (a) Maintain a system of user charges and a sewer use ordinance in accordance with s. NR 162.07 for the useful life of the treatment works or BMP.

NR 162.11(1)(b) (b) Comply with all pertinent requirements of federal, state, and local environmental laws and regulations.

NR 162.11(1)(c) (c) For financial assistance provided directly from a federal capitalization grant, comply with the requirements contained in 33 USC 1251 to 1274 and 33 USC 1381 to 1387 if required by the terms of the capitalization grant.

NR 162.11(1)(d) (d) Provide timely sewerage service to all users of the treatment works within the delineated service area except in areas where annexation is refused under s. 281.43 (1m), Stats.

NR 162.11(1)(e) (e) Comply with all state and local laws regarding procurement and public contracts.

NR 162.11(1)(f) (f) Provide department representatives access to the scored project, including all construction activities, whenever the project is in preparation or progress. For purposes of providing access, the recipient shall do all of the following:

NR 162.11(1)(f)1. 1. The recipient shall in each of its contracts for the project include a provision that requires the recipient and its contractors to allow the department access to records of contractors and subcontractors pertinent to the project for the purpose of making inspections, examinations, excerpts, copies, and transcriptions.

NR 162.11(1)(f)2. 2. The recipient shall allow DOA or its agent access to records for audits.

NR 162.11(1)(g) (g) Expeditiously initiate and complete the project in accordance with the financial assistance agreement and application, including construction of and payments for the portions ineligible for CWFP financial assistance and any project schedule approved by the department. Failure of the recipient to promptly initiate project work may be deemed a breach of the financial assistance agreement.

NR 162.11(1)(h) (h) Promptly notify the department of changes to the project, including notifying a department plan reviewer and the department construction management engineer when plans and specifications are being revised.

NR 162.11(1)(i) (i) Promptly submit to the department a copy of any prime contract or modification to it and any revisions to plans and specifications.

NR 162.11(1)(j) (j) Begin repayment of the principal balance of the loan no later than 12 months after the substantial completion date of the project as specified in the financial assistance agreement, and make the final principal payment no later than 20 years after the date of the financial assistance agreement unless the financial assistance agreement term is greater than 20 years but not more than 30 years. If the loan term is greater than 20 years, the municipality shall make the final principal payment no later than 30 years after the date of the financial assistance agreement.

NR 162.11(1)(k) (k) Make available an operations and maintenance manual for the treatment works. All of the following apply to the provision of an operations and maintenance manual:

NR 162.11(1)(k)1. 1. A recipient shall develop a new or modify an existing operations and maintenance manual that, based on the scored project, is applicable to any of the following:

NR 162.11(1)(k)1.a. a. The entire wastewater treatment works.

NR 162.11(1)(k)1.b. b. The collection system, including all wastewater treatment works facilities outside of the fence of the wastewater treatment plant.

NR 162.11(1)(k)1.c. c. The wastewater treatment plant, including all wastewater treatment works facilities inside the fence of the wastewater treatment plant.

NR 162.11(1)(k)2. 2. Address in the manual developed or modified under subd. 1. all of the following:

NR 162.11(1)(k)2.a. a. General information.

NR 162.11(1)(k)2.b. b. Staffing.

NR 162.11(1)(k)2.c. c. Records and recordkeeping.

NR 162.11(1)(k)2.d. d. Laboratory.

NR 162.11(1)(k)2.e. e. Safety.

NR 162.11(1)(k)2.f. f. Utility systems.

NR 162.11(1)(k)2.g. g. A description of the process, operations, and controls.

NR 162.11(1)(k)2.h. h. Maintenance.

NR 162.11(1)(k)2.i. i. Sludge management.

NR 162.11(1)(k)2.j. j. Manufacturer’s information.

NR 162.11(1)(k)3. 3. Provide a copy of the operations and maintenance manual developed or modified under subd. 1. to the department. For projects or facilities that have an existing operations and maintenance manual that was submitted to the department in the past, the recipient may meet the requirements of subds. 1. to 3. by developing and submitting an addendum to the previously submitted manual.

NR 162.11(1)(k)4. 4. Certify to the department, in the form required by the CWFP, that the operations and maintenance manual developed or modified under subd. 1. meets or exceeds the requirements under subd. 2. The project engineer and a municipal official of the recipient municipality shall make the certification required under this paragraph.

NR 162.11 Note Note: Operations and maintenance manual certification checklists and additional information regarding operations and maintenance manual requirements are available on the environmental improvement fund website at https://dnr.wisconsin.gov/aid/documents/EIF/Guide/Opmancwf.html.

NR 162.11(1)(L) (L) Provide and maintain adequate construction inspection to ensure conformance with the approved plans and specifications.

NR 162.11(1)(m) (m) Comply with requirements established under s. 281.49, Stats., regarding accepting septage into the wastewater treatment works from septic tanks or holding tanks within the recipient’s sewer service area.

NR 162.11(1)(n) (n) Notify the department of the substantial completion of the project.

NR 162.11(1)(o) (o) Maintain all required intermunicipal agreements throughout the term of the financial assistance agreement as described in s. NR 162.05 (4) (h) 2.

NR 162.11(1)(p) (p) Comply with all applicable provisions of any outstanding CWFP and safe drinking water loan program financial assistance agreements and CWFP interest rate subsidy agreements.

NR 162.11(1)(q) (q) Obtain and maintain full legal right and authority required to own, control, operate, and maintain the project for at least the term of the financial assistance agreement, including assuring that any of the following requirements regarding the land on which the project takes place are met:

NR 162.11(1)(q)1. 1. If the municipality prior to signing a financial assistance agreement owns all of the land on which the project takes place, the municipality shall maintain ownership of the land on which the project is built for at least the term of the financial assistance agreement unless the municipality obtains approval from the department to discontinue operation of, sell, or otherwise dispose of the project.

NR 162.11(1)(q)2. 2. If the municipality prior to signing a financial assistance agreement does not own any of the land on which the project takes place, the municipality shall obtain and maintain for at least the term of the financial assistance agreement all necessary permits, licenses, easements, and approvals required to give the municipality the authorities and permissions needed to construct, operate, and maintain the project on the land on which the project is built unless the municipality obtains approval from the department to discontinue operation of, sell, or otherwise dispose of the project.

NR 162.11(1)(q)3. 3. If the municipality prior to signing a financial assistance agreement owns some but not all of the land on which the project takes place, the municipality shall follow the requirements under subds. 1. and 2. regarding maintaining ownership of or access needed to the land on which the project takes place to allow the municipality to construct, operate, and maintain the project on the land on which the project is built for at least the term of the financial assistance agreement.

NR 162.11(2) (2) The financial assistance agreement is not effective until all parties to the financial assistance agreement have signed it.

NR 162.11 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 162.12 NR 162.12 Financial management. The recipient shall do all of the following:

NR 162.12(1) (1) Maintain project accounts in accordance with generally accepted accounting principles, governmental accounting standards board requirements, or other methods of accounting accepted by the department or required by the federal government.

NR 162.12(2) (2) Maintain a financial management system that meets the requirements, terms, and conditions of the financial assistance agreement and ch. Adm 35.

NR 162.12(3) (3) Comply with any U.S. treasury requirements for maintaining the tax–exempt status of the bonds sold to the CWFP.

NR 162.12 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 162.13 NR 162.13 Financial assistance disbursements.

NR 162.13(1) (1) Requests for disbursement. The recipient shall submit to the department requests for disbursement for eligible costs in the format specified by the department.

NR 162.13(2) (2) Adjustment. Before the final disbursement under the financial assistance agreement, the department may recommend to DOA that any request for disbursement be reviewed or audited.

NR 162.13(3) (3) Withholding of funds. The department may withhold funds on the basis of any of the following:

NR 162.13(3)(a) (a) The department may direct DOA to withhold financial assistance disbursements if the department determines that a recipient has failed to comply with project objectives or the terms, conditions, or reporting requirements of the financial assistance agreement.

NR 162.13(3)(b) (b) The department may withhold 5 percent of the principal amount of a loan until all of the project closeout requirements under sub. (4) (b) are completed.

NR 162.13(3)(c) (c) The department may withhold payment of costs that fall outside of the beginning or end dates of a contract or that are in excess of the estimated not-to-exceed amount in the contract until the recipient amends the contract.

NR 162.13(3)(d) (d) The department may withhold payment of costs of a contract until the recipient submits the required documentation for the costs, including a copy of the department construction management engineer’s approval letter for any change order for which payment is requested and any amendments to engineering or other professional services contracts for which disbursement of financial assistance for costs of the contract will be requested.

NR 162.13(4) (4) Final disbursement and project closeout.

NR 162.13(4)(a) (a) The recipient shall submit the final request for disbursement as soon as is practicable after final completion of project construction.

NR 162.13(4)(b) (b) All of the following project closeout procedures shall occur prior to the final disbursement or as soon as is practicable after final completion of project construction if the recipient determines it will not be requesting any additional funds but did not previously label a request for disbursement as the final request:

NR 162.13(4)(b)1. 1. The department shall complete a final inspection and sign off on the scored project.

NR 162.13(4)(b)2. 2. The recipient shall submit to the department for review all change orders and amendments for all contracts associated with the project that the recipient did not submit before or during construction of the project.

NR 162.13(4)(b)3. 3. The recipient shall certify its acceptance of the project from its contractors and engineers on a form provided by the department.

NR 162.13 Note Note: A project acceptance certification form is available on the Environmental Improvement Fund website at https://dnr.wisconsin.gov/aid/documents/EIF/Forms/forms.html or in paper form from the Bureau of Community Financial Assistance, Department of Natural Resources, Box 7921, Madison WI 53707-7921.

NR 162.13(4)(b)4. 4. The recipient shall document final utilization of MBEs and WBEs on a form provided by the department.

NR 162.13 Note Note: An MBE/WBE utilization form is available on the Environmental Improvement Fund website at dnr.wi.gov/Aid/EIF.html or in paper form from the Bureau of Community Financial Assistance, Department of Natural Resources, Box 7921, Madison WI 53707-7921. This form is also provided in the financial assistance agreement as an exhibit.

NR 162.13(4)(b)5. 5. The recipient shall certify its compliance with federal requirements as detailed in the financial assistance agreement.

NR 162.13(4)(b)6. 6. The recipient shall submit to the department a completed operations and maintenance manual certification checklist.

NR 162.13 Note Note: Operations and maintenance manual certification checklist forms are available on the Environmental Improvement Fund website at https://dnr.wisconsin.gov/aid/documents/EIF/Forms/forms.html or in paper form from the Bureau of Community Financial Assistance, Department of Natural Resources, Box 7921, Madison WI 53707-7921.

NR 162.13(4)(b)7. 7. The department shall inform DOA of the recipient’s compliance with all applicable requirements of this chapter and the financial assistance agreement.

NR 162.13(4)(b)8. 8. After the department determines that the project closeout requirements under subds. 1. to 6. are completed, the department shall notify the recipient that the project is closed out, or, if there is a final disbursement yet to be sent to the recipient, the department shall notify the recipient of the date and amount of the final disbursement and that the project will be closed out on the date of the final disbursement.

NR 162.13(4)(c) (c) If construction of a project is complete prior to the CWFP loan closing for the project, the recipient shall submit project closeout documents within 90 days of the loan closing date.

NR 162.13(4)(d) (d) If the recipient does not provide the required documents for project closeout of a completed project to the department for any CWFP financial assistance agreement or any other financial assistance from the environmental improvement fund and applies for funding from the environmental improvement fund for another project, the department may deny financial assistance for the new project until the previous project is closed out according to requirements under this chapter.