The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB131,1 Section 1. 66.0811 (4) of the statutes is created to read:

AB131,2,9 66.0811 (4) Notwithstanding subs. (2) and (3) and s. 66.0901 (11), a municipal public utility or a metropolitan sewerage district created under ch. 200 may use funds derived from its water or sewerage services for up to one-half the cost of pretreatment or other perfluoroalkyl and polyfluoroalkyl substances source reduction measures for an interconnected customer or other regular customer if the costs incurred are less than the costs of the upgrades otherwise required at the endpoint treatment facility and if the costs are approved by the governing body of the municipality or the metropolitan sewerage district.

AB131,2 Section 2. 196.49 (7) of the statutes is created to read:

AB131,2,15 196.49 (7) With respect to a water public utility or a combined water and sewer public utility, the commission may not investigate, impose a penalty against, or bring an action to enjoin the public utility for failing to obtain a certificate of authority before commencing a project for which one is required under this section if all of the following apply:

AB131,2,20 (a) The public utility undertook the project in response to a public health concern caused by PFAS, as defined in s. 292.315 (1), the presence of which was unknown to the public utility until shortly before it commenced the project, and the public utility provides evidence showing that the utility has exceeded or is likely to exceed the applicable promulgated state or federal standard for that type of PFAS.

AB131,3,3 (b) The public utility promptly notifies the commission of the work and, within 30 days after commencing the work, submits the appropriate application and supporting documentation to the commission.

AB131,3,4 (c) The total cost of the project is not greater than $2,000,000.

AB131,3 Section 3. 281.58 (8e) of the statutes is renumbered 281.58 (8e) (am).

AB131,4 Section 4. 281.58 (8e) (bm) of the statutes is created to read:

AB131,3,15 281.58 (8e) (bm) If the department, when ranking projects under this subsection or determining an applicant’s eligibility for assistance under this section, considers whether an applicant that intends to extend service outside the boundaries of a municipality because of water contamination is small or disadvantaged, the department shall, to the extent allowable under federal law, determine the applicant to be small or disadvantaged if the area receiving the extended service would normally be determined to be small or disadvantaged, regardless of whether the existing service area would normally be determined to be small or disadvantaged.

AB131,5 Section 5. 281.61 (6) of the statutes is amended to read:

AB131,4,12 281.61 (6) Priority list. The department shall establish a priority list that ranks each safe drinking water loan program project. The department shall promulgate rules for determining project rankings that, to the extent possible, give priority to projects that address the most serious risks to human health, that are necessary to ensure compliance with the Safe Drinking Water Act, 42 USC 300f to 300j-26, and that assist applicants that are most in need on a per household basis, according to affordability criteria specified in the rules. For the purpose of ranking projects under this subsection, the department shall treat a project to upgrade a public water system to provide continuous disinfection of the water that it distributes as if the public water system were a surface water system that federal law requires to provide continuous disinfection. If the department, when ranking projects under this subsection or determining an applicant’s eligibility for assistance under this section, considers whether an applicant that intends to extend service outside the boundaries of a local governmental unit because of water contamination is small or disadvantaged, the department shall, to the extent allowable under federal law, determine the applicant to be small or disadvantaged if the area receiving the extended service would normally be determined to be small or disadvantaged, regardless of whether the existing service area would normally be determined to be small or disadvantaged.

AB131,6 Section 6. 281.75 (5m) of the statutes is created to read:

AB131,4,21 281.75 (5m) Referral to the innocent landowner grant program. If the department determines that a claimant that submits a claim under this section on the basis of contamination by perfluoroalkyl or polyfluoroalkyl substances would be eligible for a grant under the innocent landowner grant program under s. 292.34, and moneys are available under s. 292.34, the department shall refer the claim to the program under s. 292.34 instead of reviewing the claim under this section. If the claimant’s claim is denied under s. 292.34, the department shall refer the claim back to the program under this section.

AB131,7 Section 7. 281.75 (7) (c) 2. a. of the statutes is amended to read:

AB131,5,2 281.75 (7) (c) 2. a. Equipment used for treating the water, including a filtration device and up to 2 replacement filters;

AB131,8 Section 8. 292.11 (9) (g) of the statutes is created to read:

AB131,5,5 292.11 (9) (g) 1. In this section, “PFAS” means any perfluoroalkyl or polyfluoroalkyl substance.

AB131,5,9 2. All of the persons eligible for an innocent landowner grant under s. 292.34 (3) (a) to (e) are exempt from subs. (3), (4), and (7) (b) and (c) with respect to PFAS contamination if the person grants permission to the department to remediate the land at the department’s expense.

AB131,5,16 3. A person not otherwise exempt under subd. 2. is exempt from subs. (3), (4), and (7) (b) and (c) with respect to PFAS contamination based on the results of PFAS testing on samples taken from lands not owned by the state, unless that testing demonstrates that PFAS levels violate any applicable state or federal law, including any standard promulgated under state or federal law. This subdivision does not limit the ability of a landowner or other authorized party to voluntarily take remedial action based on PFAS test results collected by the department.

AB131,9 Section 9. 292.315 of the statutes is created to read:

AB131,5,19 292.315 Municipal PFAS grant program. (1) Definition. In this section, “PFAS” means any perfluoroalkyl or polyfluoroalkyl substance.

AB131,5,23 (1m) Applicability. This section applies only to PFAS for which there is a state or federal standard, a public health recommendation from the department of health services under s. 160.07, or a health advisory issued by the federal environmental protection agency.

AB131,5,24 (2) Grants. The department shall provide all of the following grants:

AB131,6,12 (a) Grants to municipalities to test for PFAS levels at municipal water systems and municipal wastewater treatment facilities, or to reimburse municipalities for PFAS testing performed at properties owned, leased, managed, or contracted for by those municipalities after applicable standards for the chemical being tested have been promulgated. The department shall base the amount of grant awards under this paragraph on the cost of testing and the amount of testing needed in each community, while ensuring that funding is available to every eligible applicant that submits a claim under this paragraph. The department may not require a municipality that submits a claim for a grant under this paragraph to provide information other than the basic information necessary to process the claim and may not require the recipient of a grant under this paragraph to provide any matching funds.

AB131,6,21 (b) Grants, provided in equal shares not to exceed $1,800, to entities that are not municipalities and that are regulated as public or community water systems for the entity to test its drinking water supply for PFAS if required to do so by the department, or for reimbursement to the entity for PFAS testing performed after applicable standards for the chemical being tested have been promulgated. An entity that is not a municipality may apply to the department one time for a grant under this paragraph, by a deadline set by the department. The department may not require the recipient of a grant under this paragraph to provide any matching funds.

AB131,7,4 (c) Grants, provided in equal shares not to exceed $15,000, to the owner or manager of, or the holder of a solid waste facility license issued by the department for, privately owned solid waste disposal facilities to test for the presence of PFAS in leachate. An entity may apply to the department one time for a grant under this paragraph, by a deadline set by the department. The department may not require the recipient of a grant under this paragraph to provide any matching funds.