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 HistoryHistory: 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 HistoryHistory: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23. 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 NoteNote: 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 NoteNote: 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(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 HistoryHistory: 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 162.41NR 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)(b)(b) A copy of the application review letter from the attorney general’s office. 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 HistoryHistory: 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(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 NoteNote: 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. NR 162.42 HistoryHistory: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23. NR 162.43NR 162.43 Determination of interest rate subsidy. NR 162.43(1)(1) General. Interest rate subsidies shall be set in accordance with s. 281.58 (8) (j) and (12) (a), Stats., and this section. Subsidies are not available for interest payments that were due to the BCPL prior to the execution of an interest rate subsidy agreement with the department. NR 162.43(3)(3) Project interest rate calculation. The department shall calculate the project interest rate according to s. NR 162.10 (2). NR 162.43 NoteNote: Section NR 162.10 (1) (b) does not apply to projects subsidized under this subchapter. NR 162.43(4)(a)(a) Only that portion of the recipient’s BCPL loan that is used for a scored project is eligible for interest rate subsidy. NR 162.43(4)(b)(b) The maximum amount of project costs eligible for interest rate subsidy is the total eligible costs of the scored project multiplied by the parallel cost percentage as determined under the applicable requirements of s. NR 162.04 (1) (c). NR 162.43(4)(c)(c) The interest rate subsidy shall be based on the market interest rate in effect at the time the interest rate subsidy agreement is executed. NR 162.43(4)(d)(d) The department shall calculate the interest rate subsidy as follows: Where:
Loan ratio . . . is the percentage of the BCPL loan principal that is eligible for interest rate subsidy.
Eligible principal . . . is the lesser of the BCPL loan amount eligible for interest rate subsidy under par. (a) or the CWFP project costs eligible for subsidy under par. (b).
Loan principal . . . is the original total BCPL loan amount.
Where:
Interest ratio . . . is the interest rate subsidy as a percentage applicable interest rate, before adjusting for the eligible share of BCPL loan principal.
Interest rate . . . is the lesser of the market interest rate or the interest rate on the BCPL loan.
Project rate . . . is the project interest rate calculated under s. NR 162.10 (2) (b). NR 162.43(4)(d)4.4. Annual interest rate subsidy = Interest charged on BCPL loan * Subsidy ratio. Where:
Annual interest rate subsidy . . . is the dollar amount of the subsidy provided to the municipal recipient in a given year, based on the interest amount billed to the municipality that year for the BCPL loan.
Interest charged on BCPL loan . . . is the amount of interest charged by the BCPL for the applicable loan in a given year.
Subsidy ratio . . . is the subsidy ratio calculated in subd. 3., which is the percentage to be applied to interest charged on a BCPL loan in a given year to calculate the appropriate amount of interest rate subsidy to provide the municipality in that year. The subsidy ratio shall not be less than zero percent or greater than 100 percent.
NR 162.43 NoteNote: DOA annually calculates the interest rate subsidy amount for each CWFP interest rate subsidy agreement still in effect. The amount provided to the municipality in a given year is based on information supplied by the BCPL regarding the amount of interest charged during that year on each outstanding BCPL loan associated with a CWFP interest rate subsidy agreement. The BCPL determines the type of municipal obligation that is required for the repayment of its loan.
NR 162.43 HistoryHistory: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23. NR 162.44NR 162.44 Interest rate subsidy agreement conditions. NR 162.44(1)(1) Comply with laws. The interest rate subsidy agreement shall require the recipient and the treatment works or BMP to comply with all pertinent requirements of federal, state, and local laws and regulations and outstanding CWFP and safe drinking water loan program financial assistance agreements. NR 162.44(2)(2) Recipient requirements. The interest rate subsidy agreement shall require the recipient to do all of the following: NR 162.44(2)(a)(a) Access. Provide department representatives access to the project, including construction activities, whenever it is in preparation or progress. The recipient shall allow department representatives access to records of contractors and subcontractors that are pertinent to the project for the purpose of making inspections, examinations, excerpts, copies, and transcriptions. The recipient shall also allow DOA access to records for audits.
