Chapter NR 162

NR 162.36 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

subch. IV of ch. NR 162 Subchapter IV — Interest Rate Subsidies for Small Loans

NR 162.37 NR 162.37 Applicability. This subchapter applies to any applicant for and recipient of interest rate subsidy provided under ss. 281.58 and 281.59, Stats., for reducing interest costs on a loan made to the recipient by the BCPL for engineering and construction of treatment works and BMPs with total estimated project costs, after awarding all contracts, of $2,000,000 or less. Compliance with the applicable requirements of this subchapter is a prerequisite to receiving interest rate subsidy under ss. 281.58 and 281.59, Stats. The following sections in subchs. I, II, III, and V apply to projects receiving interest rate subsidy under this subchapter: ss. NR 162.001 to 162.003, 162.01, 162.02, 162.04 (1) (a) and (2), 162.08 (1) to (3) and (5) to (7), 162.10 (1) (a) and (2), 162.15, 162.19, 162.20, and 162.49 to 162.52. The department will continue to accept applications for funding under this subchapter unless availability of funds for interest rate subsidies becomes a limiting factor for the department’s ability to continue this portion of the CWFP.

NR 162.37 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23; correction made under s. 35.17, Stats., Register October 2023 No. 814.

NR 162.38 NR 162.38 Project eligibility.

NR 162.38(1) (1) Eligible projects. An eligible applicant may receive financial assistance under this subchapter for a publicly owned project with total estimated project costs of $2,000,000 or less that meets any of the following criteria if the project did not reach substantial completion more than 3 years prior to the date on which the applicant submits a complete application for financial assistance under s. NR 162.40 (5):

NR 162.38(1)(a) (a) Traditional wastewater treatment plant and collection system projects. A municipality may receive financial assistance under this subchapter for a publicly-owned wastewater treatment works scored project that meets any of the following criteria:

NR 162.38(1)(a)1. 1. 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 162.38(1)(a)1.a. a. 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, as defined in s. NR 162.003 (68). 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 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 162.38(1)(a)1.b. b. Projects for which construction takes place outside of the fence of the wastewater treatment plant that are necessary to maintain 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 or headworks 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 162.38(1)(a)2. 2. 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 162.38(1)(a)3. 3. 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 subdivision:

NR 162.38(1)(a)3.a. a. 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 162.38(1)(a)3.b. b. 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 162.38 Note Note: Traditional wastewater treatment plant and collection system projects 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 162.38(1)(b) (b) Individual wastewater treatment systems.

NR 162.38(1)(b)1. 1. A municipality may receive interest rate subsidy under this subchapter for a project that consists of individual systems that serve one or more properties for the purpose of treating sanitary waste if all of the following apply:

NR 162.38(1)(b)1.a. a. The municipality owns each individual system.

NR 162.38(1)(b)1.b. b. The municipality is responsible for the proper installation, operation, and maintenance of each individual system.

NR 162.38(1)(b)1.c. c. 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 162.38(1)(b)1.d. d. 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 the groundwater where required by the department.

NR 162.38(1)(b)1.e. e. The municipality complies with all other applicable requirements, limitations, and conditions for projects funded under this subchapter.

NR 162.38(1)(b)2. 2. The access required under subd. 1. c. shall be established through easements, covenants running with the land, or ordinance. The department may require that the program established under subd. 1. d. include periodic testing of water from existing potable water wells and monitoring of aquifers in the area.

NR 162.38(1)(c) (c) Storm water projects.

NR 162.38(1)(c)1. 1. A municipality may receive interest rate subsidy under this subchapter for a publicly owned project necessary to control storm water runoff pollution in order to achieve water quality standards, including publicly-owned storm water management projects on public or private land that are required by any of the following:

NR 162.38(1)(c)1.a. a. A WPDES storm water permit issued under subch. I of ch. NR 216.

NR 162.38(1)(c)1.b. b. A performance standard delineated in ch. NR 151.

NR 162.38(1)(c)1.c. c. A storm water management plan or other applicable plan approved by the department for purposes of managing runoff.

NR 162.38(1)(c)2. 2. A project that is eligible under subd. 1. may consist of individual BMPs on private land that treat runoff and serve one or more private properties if all of the following apply:

NR 162.38(1)(c)2.a. a. The municipality owns each individual BMP.

NR 162.38(1)(c)2.b. b. The municipality is responsible for the proper installation, operation, and maintenance of each individual BMP.

NR 162.38(1)(c)2.c. c. The municipality has unlimited access to each individual BMP at all reasonable times for the purposes of inspection, monitoring, construction, maintenance, operation, rehabilitation, and replacement of the BMP.

NR 162.38(1)(c)2.d. d. The municipality establishes a comprehensive program for the regulation, inspection, operation, and maintenance of individual BMPs, and for monitoring the impact of the BMPs on the groundwater where required by the department.

NR 162.38(1)(c)2.e. e. The municipality complies with all other applicable requirements, limitations, and conditions for projects funded under this chapter.

NR 162.38(1)(c)3. 3. The access required under subd. 2. c. shall be established through easements, ordinance, or covenants running with the land.

NR 162.38(1)(c)4. 4. The department may require that the program established under subd. 2. d. includes periodic testing of water from existing potable water wells and monitoring of aquifers in the area.

NR 162.38(2) (2) Ineligible projects. The department may determine that an entire project or a portion of a project is ineligible for CWFP interest rate subsidy. 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 interest rate subsidy to be provided to reflect the appropriate proportion of eligible to ineligible project costs, or both, in the interest rate subsidy agreement. All of the following projects or portions of projects are not eligible to receive financial assistance under this subchapter:

NR 162.38(2)(a) (a) Projects that are found ineligible for financing by the BCPL.

NR 162.38(2)(b) (b) Projects of a municipality that is failing to substantially comply with applicable conditions or requirements of s. 281.58 or 281.59, Stats., ch. Adm 35, this chapter, an existing financial assistance agreement with the CWFP or Wisconsin’s safe drinking water loan program under s. 281.61, Stats., or an interest rate subsidy agreement, or with the terms of a federal or state grant used to pay the costs to plan, design, or construct a treatment works or BMP.

NR 162.38(2)(c) (c) 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 162.38(2)(d) (d) Public sanitary sewer mains, interceptors, and individual systems that exclusively serve development not in existence as of the date the department receives an interest rate subsidy application submitted by a municipality under this subchapter.

NR 162.38(2)(e) (e) 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 162.38(2)(f) (f) Dams, pipes, conveyance systems, and BMPs, including storm sewer rerouting and land acquisition, when intended solely for drainage and flood control.

NR 162.38(2)(g) (g) Any project in an unsewered municipality that will be disposing of wastewater in the treatment works of another municipality and has not executed an intermunicipal agreement under s. 66.0301, Stats., with the other municipality to receive, treat, and dispose of the wastewater.

NR 162.38(2)(h) (h) Projects that have been substantially complete for 3 years or longer.

NR 162.38(2)(i) (i) 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) for a wastewater project or s. NR 162.24 (3) (h) for a storm water project. 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 162.38 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23; correction in (1) (intro.), (b), (c) 2. made under s. 35.17, Stats., Register October 2023 No. 814.

NR 162.39 NR 162.39 Cost eligibility.

NR 162.39(1) (1) Eligible costs. Project costs described in ss. NR 162.04 (1) (a) and 162.23 (1) (a) are eligible for interest rate subsidy.

NR 162.39(2) (2) ineligible costs. Project costs described in ss. NR 162.04 (1) (b) and (2) and 162.23 (1) (b) and (2) are not eligible for interest rate subsidy.

NR 162.39 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 162.40 NR 162.40 Application process.

NR 162.40(1) (1) Notice of intent to apply submittal. A municipality that intends to apply for interest rate subsidy shall submit to the department a notice of its intent to apply in accordance with s. NR 162.05 (1).

NR 162.40 Note Note: Instructions regarding the online application systems are available on the Environmental Improvement Fund website at dnr.wi.gov/Aid/EIF.html.

NR 162.40(2) (2) Notice of intent to apply deadline. The department may set a notice of intent to apply submittal deadline by publishing the deadline date in the annual intended use plan.

NR 162.40(3) (3) Facilities plan. A municipality requesting interest rate subsidy for a wastewater or storm water project shall submit a facilities plan or other applicable plan to the department for approval. The municipality shall receive approval of the facilities plan or other applicable plan prior to submitting an application for financial assistance.

NR 162.40(4) (4) Application procedures. A municipality shall apply for interest rate subsidy in accordance with s. 281.58 (9) (a) to (c), Stats., in the form required by the department.

NR 162.40 Note Note: An application form is available on the Environmental Improvement Fund website at dnr.wi.gov/Aid/EIF.html and from the Bureau of Community Financial Assistance, Department of Natural Resources, Box 7921, Madison WI 53707-7921.

NR 162.40(5) (5) Contents of application. The applicant shall submit a complete interest rate subsidy application. A complete application includes the following items:

NR 162.40(5)(a) (a) Evidence of an approved facility plan or other department-approved plan.

NR 162.40(5)(b) (b) Construction plans and specifications submitted to the department in accordance with chs. NR 108 and 110 or ch. NR 151 that are approvable under ch. 281, Stats. An applicant may be denied funding if the applicant does not provide appropriately complete plans and specifications to the department prior to or with the application. The applicant shall submit a copy of approvable plans and specifications with the application in addition to the plans and specifications submitted to the department for plan review under chs. NR 108 and 110 or ch. NR 151.

NR 162.40(5)(c) (c) A completed interest subsidy application form, including estimated or actual construction costs and replacement fund information.

NR 162.40(5)(d) (d) A proposed or an executed intermunicipal agreement in accordance with s. NR 162.05 (4) (h) for a wastewater project or s. NR 162.24 (3) (h) for a storm water project when 2 or more municipalities utilize shared or interconnected treatment works or a BMP.

NR 162.40(6) (6) Application submittal deadline. In fiscal years for which the department sets an application submittal deadline for all or a specific type of funding, the applicant shall submit the items and information required under sub. (5) by the application submittal deadline in order to be considered eligible to obtain financial assistance from funds available during the funding cycle for which the deadline is set. The department may set application submittal deadlines in the intended use plan.

NR 162.40(7) (7) Application acceptance. The department shall accept an interest rate subsidy application as complete after all of the following occur:

NR 162.40(7)(a) (a) The department determines that it received all the applicable items and information required under sub. (5) for the scored project.

NR 162.40(7)(b) (b) The project is placed on the CWFP funding list.

NR 162.40(8) (8) Deadline for signing interest rate subsidy agreement. The department shall set in the CWFP annual intended use plan a deadline for signing an interest rate subsidy agreement. An applicant shall sign an interest rate subsidy agreement within the timeframe set by the department. An applicant shall time its submittal of the application accordingly. If an interest rate subsidy agreement is not signed within the established timeframe, the applicant’s project shall lose its allocated subsidy.

NR 162.40 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23; correction in (1), (4) made under s. 35.17, Stats., Register October 2023 No. 814.

NR 162.41 NR 162.41 Interest rate subsidy requirements. Before awarding interest rate subsidy for any project, the department shall determine that all of the applicable requirements of s. NR 162.40 are met, and that all of the following are satisfied:

NR 162.41(1) (1) The department received all of the following information pertaining to the applicant’s BCPL loan:

NR 162.41(1)(a) (a) A copy of the loan application.

NR 162.41(1)(b) (b) A copy of the application review letter from the attorney general’s office.

NR 162.41(1)(c) (c) A signed copy of the certificate of indebtedness.

NR 162.41(2) (2) The project has met the priority requirements of subch. V.

NR 162.41(3) (3) If requested by the department, the municipality submitted copies of executed engineering contracts for planning, design, and construction.

NR 162.41(4) (4) If requested by the department, the municipality submitted information related to bids and construction contracts.

NR 162.41(5) (5) The department determined the parallel cost percentage, provided plans and specifications approval to the municipality, and complied with the Wisconsin environmental policy act requirements under the procedures in ch. NR 150 for the scored project.

NR 162.41(6) (6) The applicant has the legal, institutional, managerial, and financial capability to ensure adequate construction, operation, and maintenance of the treatment work or BMP throughout the applicant’s jurisdiction.

NR 162.41(7) (7) DOA determined that the municipality can meet the terms and conditions for receiving financial assistance under ch. Adm 35 and s. 281.59, Stats.

NR 162.41(8) (8) If requested by the department, the municipality submitted additional financial information required by DOA.

NR 162.41(9) (9) The applicant received, or applied for, any state permits required by the department, including those under chs. 30 and 283, Stats.

NR 162.41(10) (10) If requested by the department, the municipality submitted information regarding its user charge system and sewer use or storm water utility ordinance in addition to that required under s. NR 162.40 (5) (c).

NR 162.41(11) (11) If requested by the department, the municipality submitted other documentation or certifications in support of the application.

NR 162.41 History History: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23; correction in (10) made under s. 13.92 (4) (b) 7., Stats., Register October 2023 No. 814.

NR 162.42 NR 162.42 Procurement.

NR 162.42(1) (1) Applicability. Procurement of professional services and construction contracts by recipients under this subchapter shall be in accordance with the requirements of s. NR 162.08 (1) to (3) and (5) to (7).

NR 162.42 Note Note: Once an interest rate subsidy agreement is executed by the municipality and the CWFP, no further amendments to professional services contracts or change orders for construction contracts can be considered for subsidy.

NR 162.42(2) (2) Utilization of minority business enterprises and women business enterprises. Applicants are encouraged to provide DBEs, including MBEs and WBEs, the maximum feasible opportunity to compete for contracts and subcontracts and to utilize DBEs, including MBEs and WBEs, for their projects. The Wisconsin department of transportation unified certification program’s list of certified DBEs is available online. Applicants are encouraged to use this list when soliciting DBEs for participation in the project. Recipients shall provide documentation of any MBE or WBE utilization to the department.