Chapter NR 166

NR 166.03(27) (27) “Interim debt” means a financial liability that is subject to repayment and incurred by an applicant to temporarily finance a scored project until permanent financing is obtained from the SDWLP, including liabilities in the form of lines of credit, short-term loans from the board of commissioners of public lands, bank loans, bond anticipation notes, general obligation bonds, revenue bonds, general obligation promissory notes, and certificates of indebtedness.

NR 166.03(28) (28) “Interim debt costs” means the net interest, fees, and charges associated with issuing interim debt, including municipal advisor fees, attorney fees, printing costs, bond rating charges, and trustee fees.

NR 166.03(29) (29) “Maintenance” means activities or procedures that are established, commonplace, or repetitious, and are performed or should be performed frequently or on a schedule to sustain the functional integrity and efficiency of existing facilities and to provide upkeep for prevention of early decline or failure, or are performed as needed in response to minor emergencies, such as watermain repair when a pipe bursts, including all of the following types of maintenance:

NR 166.03(29)(a) (a) Preventive maintenance, including scheduled service, repair, inspection, adjustment, or replacement of parts, to keep equipment or facilities in satisfactory operating condition, to avoid frequent breakdowns and premature replacements, and to achieve the expected life of constructed assets and installed building equipment, conducted with a frequency of one year or less.

NR 166.03(29)(b) (b) Corrective maintenance, including unscheduled maintenance repairs to correct deficiencies during the year in which they occur.

NR 166.03(29)(c) (c) Mobile equipment maintenance, including all corrective, preventive, emergency, or replacement maintenance work done on mobile equipment assets, except when performed at time of purchase of used equipment to bring the purchased equipment to a fully functional or improved condition, or both.

NR 166.03(29)(d) (d) Recurring maintenance, including preventive maintenance activities that recur on a periodic and scheduled cycle of greater than one year, but less than 10 years.

NR 166.03(29)(e) (e) Component renewal, which is preventive maintenance activities that recur on a periodic and scheduled cycle of greater than 10 years, unless performed within the scope of a larger scored project. Storage tank recoating is an exception to this maintenance definition.

NR 166.03(29)(f) (f) Emergency maintenance, typically initiated within a very short amount of time from when a need is identified, to correct an emergency need to prevent injury, loss of property, or human health impacts, or to quickly return an asset to service, subject to all of the following:

NR 166.03(29)(f)1. 1. Unscheduled activities and repairs, such as repairing watermain breaks or mechanical malfunctions in aged or damaged infrastructure, are considered emergency maintenance under this paragraph.

NR 166.03(29)(f)2. 2. Emergency repairs or replacement needed due to damage caused by severe weather, cyber-attacks, or other unforeseen serious emergency situations over which the municipality has no control are not considered emergency maintenance under this paragraph.

NR 166.03(29)(g) (g) Minor equipment replacement that substitutes or exchanges one existing asset, asset component, or item of installed equipment for another having the same specifications and the same capacity to perform the same function, except when performed within the scope of a larger capital improvement.

NR 166.03(29)(h) (h) Demolition that does not meet the cost eligibility criteria established in s. NR 166.07 (1) (g).

NR 166.03(30) (30) “Market interest rate” has the meaning given in s. 281.59 (1) (b), Stats.

NR 166.03(31) (31) “Maximum contaminant level” or “MCL” has the meaning given in s. NR 809.04 (51).

NR 166.03(32) (32) “MCL exceedance” means the analytical results of sampling for microbiological, inorganic, synthetic organic, volatile organic, disinfection byproducts, or radionuclide contaminants, as determined by methodology outlined in ch. NR 809, exceed the MCL of the contaminant.

NR 166.03(33) (33) “Median household income” has the meaning given in s. 281.58 (1) (cm), Stats.

NR 166.03(34) (34) “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 166.03(35) (35) “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 166.03(36) (36) “Municipality” means a city, village, town, county, town sanitary district, public inland lake protection and rehabilitation district, joint local water authority created under s. 66.0823, Stats., or municipal water district.

NR 166.03 Note Note: To be eligible for financial assistance from the safe drinking water loan program, an entity must be of a type included in the definition of “municipality” under s. 281.59 (1) (c), Stats. However, “municipality” includes some entities that are not eligible to receive safe drinking water loan program financial assistance because they are not eligible under federal regulations. The types of entities that are eligible to receive safe drinking water loan program financial assistance are those included in the definition of “local governmental unit” under s. 281.61 (1) (am), Stats. If a municipal water district applies for safe drinking water loan program financial assistance, the recipient of the financial assistance is the incorporated place, rather than the utility itself.

NR 166.03(37) (37) “Non–community water system” means a public water system that is not a community water system.

NR 166.03(38) (38) “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 166.03(38)(a) (a) Operational maintenance activities related to continuing normal performance of the functions for which a water system asset or item of equipment is intended, such as lubricating gates and valves and removing organic growth or sediment, or related to keeping building systems such as HVAC, lighting, and electrical utilities working properly.

NR 166.03(38)(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 166.03(38)(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 166.03(38)(d) (d) Snow and ice removal and activities to treat surfaces to eliminate unsafe weather-related conditions.

NR 166.03(38)(e) (e) Office activities related to billing, collections, customer communications, personnel, and other types of work activities that support the administration of the water system.

NR 166.03(38)(f) (f) Monitoring and record-keeping activities associated with making sure all components of the water system are working properly, including sampling, testing, analyzing data from a supervisory control and data acquisition system, patrolling and inspecting, reading gauges and meters, keeping plant logs and records, and preparing operations reports.

NR 166.03(39) (39) “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 166.03(40) (40) “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 166.03(41) (41) “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 public water system owned by other than a city, town, or village, “population” means the most recent population count or estimate done for the system or 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 water system by the average household size in the area, as determined by the department.

NR 166.03(42) (42) “Priority score” means the numerical value determined by the department that is assigned to each project in accordance with ss. NR 166.23 and 166.24.

NR 166.03(43) (43) “Private service line” means the portion of a service line that is privately-owned.

NR 166.03 Note Note: The privately-owned portion is typically the segment that is downstream of the curb stop and located on private property but may include a portion in the public right of way if the municipality considers the private residential, commercial, institutional, or industrial users to be the owners of the complete service line from the publicly-owned water main to the private structure being served.

NR 166.03(44) (44) “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 166.03(45) (45) “Project” means a set of activities intended to result, or that has resulted in completed construction of drinking water system related facilities.

NR 166.03(46) (46) “Project closeout” means the procedures described in s. NR 166.16 (4) (b).

NR 166.03(47) (47) “Project completion date” means the earliest date on which all of the following apply:

NR 166.03(47)(a) (a) Construction of the scored project is complete.

NR 166.03(47)(b) (b) The department or its agents have certified that the scored project was constructed according to department-approved plans and specifications.

NR 166.03(47)(c) (c) The department or its agents have certified that the facilities are operating according to design.

NR 166.03(47)(d) (d) The project closeout is complete.

NR 166.03(47)(e) (e) The department has notified the recipient that the scored project is complete.

NR 166.03(48) (48) “Public service line” means the portion of a service line that is owned by the municipality.

NR 166.03 Note Note: The public service line is typically the segment of pipe that goes from the public water main to the curb stop at the end of the public right of way but may include a segment of pipe located on private property if that segment is owned by the municipality.

NR 166.03(49) (49) “Public water system” means a system for the provision to the public of water for human consumption through pipes and other conveyances, and includes any collection, treatment, storage, and distribution facilities used primarily in connection with the system that are under control of the water supplier for the public water system, if the water system has at least 15 service connections or regularly serves an average of at least 25 individuals daily at least 60 days each year. A public water system is either a community water system or a non–community water system.

NR 166.03 Note Note: The definition of public water system as regulated by this chapter is broader and includes more water systems than those governed by the Public Service Commission under its definition of a public utility in ch. 196, Stats.

NR 166.03(50) (50) “Recipient” means any municipality or group of municipalities that has been awarded or has received financial assistance under ss. 281.59 and 281.61, Stats.

NR 166.03(51) (51) “Replacement” means obtaining and installing equipment, accessories, or appurtenances that are necessary during the useful life of the public water system project funded through the SDWLP to maintain or improve the capacity and performance levels for which the public water system was designed and constructed.

NR 166.03(52) (52) “Safe drinking water act” means the federal safe drinking water act, 42 USC 300f to 300j–26.

NR 166.03(53) (53) “Safe drinking water loan program” or “SDWLP” has the meaning given in s. 281.61 (1) (d), Stats.

NR 166.03(54) (54) “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 SDWLP project number.

NR 166.03(55) (55) “Service line” means a pipe located in the public right–of–way or on private property that connects a residential, commercial, institutional, or industrial user to a publicly- or privately- owned water system.

NR 166.03(56) (56) “Significant noncomplier” means a public water system that the U. S. environmental protection agency has reported to the department to be in significant noncompliance with any requirement of a primary drinking water regulation or variance under 42 USC 300g-1.

NR 166.03(57) (57) “Subscribing municipality” means a municipality that receives piped water for human consumption from another municipality that owns a public water system.

NR 166.03(58) (58) “Subsidy” means the amount provided by the environmental improvement fund to a recipient of SDWLP financial assistance to reduce the interest rate of a loan made under the SDWLP from the market interest rate to a lesser rate, or to forgive a portion of the principal of an SDWLP loan.

NR 166.03(59) (59) “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 166.03(60) (60) “Treatment technique” means one or more methods of treatment that are known to remove or inactivate giardia and viruses as described under ss. NR 810.29 and 810.31.

NR 166.03(61) (61) “Utility” means a public utility as defined in s. 196.01 (5) (a), Stats.

NR 166.03(62) (62) “Water rates” means a charge or system of charges levied on users of a water system for the user’s proportional share of the revenue requirement of a water system that consists of operation and maintenance expenses, depreciation, taxes, and return on investment.

NR 166.03(63) (63) “Water system” means all structures, conduits, and appurtenances, including water meters, by means of which water is obtained or drawn from a source and eventually delivered to consumers, except piping and fixtures inside buildings served and any private service lines.

NR 166.03(64) (64) “Women business enterprise” or “WBE” means a DBE that is owned or controlled on a daily basis by a woman or women.

NR 166.03 History History: CR 22-068: cr. Register October 2023 No. 814, eff. 11-1-23; correction in (38) (f), (49) made under s. 35.17, Stats., Register October 2023 No. 814.

subch. II of ch. NR 166 Subchapter II — Financial Assistance Requirements

NR 166.04 NR 166.04 Types of financial assistance available.

NR 166.04(1) (1) The department and DOA may, subject to applicable requirements of ss. 281.59 and 281.61, Stats., and ch. Adm 35, provide to an eligible applicant for a scored project any of the following types of financial assistance:

NR 166.04(1)(a) (a) Subject to the limits established in s. NR 166.07 (3), the purchase or refinance of a municipality’s interim debt.

NR 166.04(1)(b) (b) The guarantee of, or purchase of insurance for, municipal obligations for construction of a water system if the guaranteed or purchased insurance would improve credit market access or reduce interest costs on the municipal obligations.

NR 166.04(1)(c) (c) Loans below the market interest rate.

NR 166.04(1)(d) (d) Using funds received as federal capitalization grants under 42 USC 300j-12, any other type of assistance that is consistent with the federal program for safe drinking water state loan funds under 42 USC 300j-12 or any other federal law providing funding for or otherwise relating to that program, except funds received as federal capitalization grants may not be used to provide principal forgiveness to a private owner of a community water system.

NR 166.04 Note Note: The language included in par. (d) and under s. 281.61 (2r) (e), Stats., allows the department to provide principal forgiveness as part of a financial assistance agreement.

NR 166.04(2) (2) If a project reaches substantial completion more than 3 years prior to the date the applicant submits a complete application for financial assistance under s. NR 166.08 (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, the department and DOA may not provide financial assistance for the project.

NR 166.04 History History: CR 22-068: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 166.05 NR 166.05 Annual funding policy, project priority list, and funding list.

NR 166.05(1) (1) Funding policy and project priority list. The department may produce an annual SDWLP funding policy in conjunction with the fiscal year’s project priority list established under s. NR 166.25. The funding policy may be in the form of the SDWLP annual 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 166.05(2) (2) Funding list. The department shall prepare an annual funding list in accordance with s. 281.61 (8), Stats., and s. NR 166.25.

NR 166.05 History History: CR 22-068: cr. Register October 2023 No. 814, eff. 11-1-23.

NR 166.06 NR 166.06 Project eligibility.

NR 166.06(1) (1) Eligible projects. Under s. 281.61 (2), Stats., the department and DOA administer a financial assistance program for projects that facilitate compliance with national primary drinking water regulations under 42 USC 300g-1 or otherwise significantly further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26. Under s. 281.61 (2), Stats., a municipality may receive financial assistance under this chapter for a project that has any of the following purposes:

NR 166.06(1)(a) (a) Address safe drinking water act health standards that have been exceeded or prevent future violations of health standards and regulations contained in ch. NR 809. This includes projects to maintain compliance with existing regulations for contaminants with acute health effects and regulations for contaminants with chronic health effects.

NR 166.06(1)(b) (b) Replace or construct infrastructure if necessary to maintain compliance with or further the public health protection goals of the safe drinking water act. This includes projects with any of the following purposes:

NR 166.06(1)(b)1. 1. Rehabilitate or develop sources to replace contaminated sources, excluding open reservoirs, dams, dam rehabilitation, and water rights.

NR 166.06(1)(b)2. 2. Install or upgrade treatment facilities if, in the department’s opinion, the project would improve the quality of drinking water to comply with primary or secondary drinking water standards.

NR 166.06(1)(b)3. 3. Install or upgrade storage facilities, including finished water reservoirs, to prevent microbiological contaminants from entering the public water system.

NR 166.06(1)(b)4. 4. Install, replace, or rehabilitate transmission and distribution pipes to prevent contamination caused by leaks or breaks in the pipe, or improve water pressure to safe levels.

NR 166.06(1)(c) (c) Consolidate existing community water systems that have technical, financial, or managerial difficulties. Projects for consolidating existing systems shall be limited in scope to the service area of the systems being consolidated.

NR 166.06(1)(d) (d) Purchase a portion of another public water system’s capacity if it is the most cost–effective solution.

NR 166.06(1)(e) (e) Restructure a public water system that is in noncompliance with the safe drinking water act requirements or lacks the technical, managerial, and financial capability to maintain the system if the assistance will ensure that the system will return to and maintain compliance with the safe drinking water act requirements.