Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB492 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 492
5	5	October 12, 2023 - Introduced by Representatives MURSAU and SCHMIDT. Referred
6	6	to Committee on Local Government.
7	7	*AUTHORS SUBJECT TO CHANGE*
8	8	AN ACT to amend 20.370 (4) (dq), 289.41 (3) (c), 289.41 (11) (a) 4. and 289.68 (1);
9	9	and to create 20.370 (4) (dr), 289.41 (3m) and 289.68 (4m) of the statutes;
10	10	relating to: method for establishing proof of financial responsibility for
11	11	municipal solid waste facilities; payments for closure, long-term care, and
12	12	corrective action costs for certain solid or hazardous waste facilities; extending
13	13	the time limit for emergency rule procedures; providing an exemption from
14	14	emergency rule procedures; granting rule-making authority; and making an
15	15	appropriation.
16	16	Analysis by the Legislative Reference Bureau
17	17	Proof of financial responsibility for municipal solid waste facilities
18	18	This bill provides an alternative method for a municipality to establish the
19	19	proof of financial responsibility required for a solid waste facility.
20	20	Under current law, the owner or operator of a solid or hazardous waste storage,
21	21	treatment, or disposal facility (owner or operator) must maintain proof of financial
22	22	responsibility to ensure the availability of funds for compliance with closure and
23	23	long-term care requirements and, if necessary, for taking any required corrective
24	24	action in the event of a spill or leak. The standard method for proving financial
25	25	responsibility is to obtain, for example, a bond, deposit, escrow account, or
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35	35	ASSEMBLY BILL 492
36	36	irrevocable trust that is payable to or established for the benefit of the Department
37	37	of Natural Resources. Alternatively, current law allows an owner or operator that
38	38	is a for-profit business or a public heat, light, water, or power utility to establish
39	39	proof of financial responsibility to ensure compliance with closure and long-term
40	40	care requirements using a net worth test. The net worth test requires, among other
41	41	things, a certain level of net worth, liabilities to net worth ratio, and credit
42	42	worthiness.
43	43	This bill allows a municipality that owns or operates a solid waste facility to use
44	44	an alternative method to establish proof of financial responsibility to ensure
45	45	compliance with closure and long-term care requirements and any required
46	46	corrective action, similar to the method allowed for local governments under federal
47	47	law. Under the bill, a municipality may prove financial responsibility by showing
48	48	either that all of its outstanding general obligation bonds have a rating of at least
49	49	“Baa” if issued by Moody's or at least “BBB” if issued by Standard & Poor's, or that
50	50	its ratio of cash plus marketable securities to total expenditures is 0.05 or greater and
51	51	that its ratio of annual debt service to total expenditures is 0.20 or lower. Under the
52	52	bill, if a solid waste facility is owned or operated by more than one municipality, any
53	53	of the municipalities may establish proof of financial responsibility on behalf of itself
54	54	and the other owners or operators. The bill also requires DNR to establish additional
55	55	rules relating to the alternative method established under this bill.
56	56	Payment of closure, long-term care, and corrective action costs
57	57	This bill also allows DNR to pay costs associated with closure and long-term
58	58	care requirements and any required corrective action for a solid or hazardous waste
59	59	storage, treatment, or disposal facility that has established proof of financial
60	60	responsibility using either the net worth test or the alternative method for municipal
61	61	facilities that is created under the bill. The bill allows DNR to pay these costs if the
62	62	owner or operator has failed to comply with closure, long-term care, or corrective
63	63	action requirements specified in any rule, order, plan of operation, or other plan
64	64	approval and if either 1) the owner or operator's failure to comply is due to
65	65	bankruptcy, insolvency, or other inability to pay the costs, or 2) DNR determines that
66	66	the failure to comply presents an imminent or substantial danger to human health
67	67	or the environment.
68	68	To cover these costs, the bill allows DNR to transfer moneys from an existing
69	69	appropriation account, which is funded from the segregated waste management
70	70	fund, to a new appropriation account dedicated to this purpose. Under the bill, DNR
71	71	must request approval from the Joint Committee on Finance for any transfers that
72	72	are intended to support payments for a facility that exceed $300,000, and must notify
73	73	JCF of all other transfers.
74	74	For further information see the state and local fiscal estimate, which will be
75	75	printed as an appendix to this bill.
76	76	The people of the state of Wisconsin, represented in senate and assembly, do
77	77	enact as follows: - 3 -2023 - 2024 Legislature
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80	80	SECTION 1
81	81	ASSEMBLY BILL 492
82	82	SECTION 1. 20.370 (4) (dq) of the statutes is amended to read:
83	83	20.370 (4) (dq) Solid waste management — waste management fund. From the
84	84	waste management fund, all moneys received in the waste management fund, except
85	85	moneys appropriated under pars. (dr), (dt), (dy) and (dz), for the purpose of
86	86	administering a program of corrective action, closure, and long-term care of and
87	87	environmental repairs to solid and hazardous waste facilities under s. 289.68.
88	88	SECTION 2. 20.370 (4) (dr) of the statutes is created to read:
89	89	20.370 (4) (dr) Solid waste management — department action on corrective
90	90	action, closure, and long-term care. From the waste management fund, all moneys
91	91	received under s. 289.68 (4m) (b) for the purpose of administering a program of
92	92	corrective action, closure, and long-term care of solid and hazardous waste facilities
93	93	under s. 289.68 (4m) (a).
94	94	SECTION 3. 289.41 (3) (c) of the statutes is amended to read:
95	95	289.41 (3) (c) Changes. The owner or operator may change from one standard
96	96	method of establishing proof of financial responsibility under par. (a) to another or
97	97	standard method under par. (a), to an alternative method under sub. (3m), or to a net
98	98	worth method of establishing proof of financial responsibility under sub. (4).
99	99	SECTION 4. 289.41 (3m) of the statutes is created to read:
100	100	289.41 (3m) ALTERNATIVE METHOD OF ESTABLISHING FINANCIAL RESPONSIBILITY FOR
101	101	SOLID WASTE DISPOSAL FACILITIES; MINIMUM FINANCIAL STANDARDS FOR MUNICIPALITIES. (a)
102	102	Alternative method requirements. A municipality may establish proof of financial
103	103	responsibility for solid waste disposal facilities as required under sub. (2) by applying
104	104	to the department and meeting the alternative method requirements. The
105	105	department shall establish by rule the minimum financial requirements for a
106	106	municipality to establish proof of financial responsibility under this subsection. If
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134	134	a facility is owned or operated by more than one municipality, any such municipality
135	135	may establish proof of financial responsibility under this subsection on behalf of
136	136	itself and the other municipalities that are owners or operators. A municipality that
137	137	seeks to establish proof of financial responsibility under this subsection shall satisfy
138	138	the minimum financial requirements established by rule and all of the following
139	139	requirements:
140	140	1. If the municipality has any outstanding, rated, general obligation bonds,
141	141	none have been rated lower than “Baa” as issued by Moody's Investors Service or
142	142	“BBB” as issued by Standard & Poor's Corporation.
143	143	2. The municipality's most recent audited annual financial statement shows
144	144	a ratio of cash plus marketable securities to total expenditures of not less than 0.05,
145	145	and a ratio of annual debt service to total expenditures of not greater than 0.20.
146	146	(b) Failure to meet alternative method requirements. If at any time the
147	147	department determines that a municipality does not meet the minimum financial
148	148	requirements under par. (a) 1. and 2. and established by rule, the municipality shall,
149	149	within 45 days of the department's determination, establish proof of financial
150	150	responsibility using one of the standard methods under sub. (3).
151	151	SECTION 5. 289.41 (11) (a) 4. of the statutes is amended to read:
152	152	289.41 (11) (a) 4. The department may request the department of justice to
153	153	initiate court action against the owner or operator to recover moneys sufficient to pay
154	154	the cost of complying with the closure and long-term care requirements of the
155	155	specified in any rule, order, plan of operation, or other plan approval or approved plan
156	156	under s. 291.29. Any moneys recovered in this type of action or as a settlement in
157	157	anticipation of this type of action shall be credited to the waste management fund.
158	158	SECTION 6. 289.68 (1) of the statutes is amended to read:
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184	184	LRB-0632/1
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186	186	SECTION 6
187	187	ASSEMBLY BILL 492
188	188	289.68 (1) PAYMENTS FROM THE WASTE MANAGEMENT FUND. The department may
189	189	expend moneys in the waste management fund only for the purposes specified under
190	190	subs. (3) to (6) and 1991 Wisconsin Act 39, section 9142 (2w). The department may
191	191	expend moneys appropriated under s. 20.370 (4) (dq) for the purposes specified under
192	192	subs. (3) and (5) and 1991 Wisconsin Act 39, section 9142 (2w). The department may
193	193	expend moneys appropriated under s. 20.370 (4) (dt) for the purposes specified under
194	194	sub. (4). The department may expend moneys appropriated under s. 20.370 (4) (dy)
195	195	and (dz) for the purposes specified under sub. (6). The department may expend
196	196	moneys appropriated under s. 20.370 (4) (dr) for the purposes specified under sub.
197	197	(4m).
198	198	SECTION 7. 289.68 (4m) of the statutes is created to read:
199	199	289.68 (4m) PAYMENTS OF CLOSURE, LONG-TERM CARE, AND CORRECTIVE ACTION
200	200	COSTS. (a) Payments. The department may expend moneys appropriated under s.
201	201	20.370 (4) (dr) to pay costs associated with closure, long-term care requirements, and
202	202	corrective action for a facility that has established proof of financial responsibility
203	203	under s. 289.41 (3m) or (4), if the owner or operator of the facility has failed to comply
204	204	with closure, long-term care, or corrective action requirements specified in any rule,
205	205	order, plan of operation, or other plan approval and if any of the following applies:
206	206	1. The owner or operator's failure to comply is due to bankruptcy, insolvency,
207	207	or other inability to pay the costs.
208	208	2. The department determines that the failure to comply presents an imminent
209	209	or substantial danger to human health or the environment.
210	210	(b) Transfer of funds; joint finance approval. The department may transfer
211	211	money from the appropriation account under s. 20.370 (4) (dq) to the appropriation
212	212	account under s. 20.370 (4) (dr) for the purposes specified under par. (a). The
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239	239	SECTION 7 ASSEMBLY BILL 492
240	240	department shall notify the joint committee on finance of transfers that are intended
241	241	to support payments for a facility under par. (a) that do not exceed $300,000. The
242	242	department may not make any transfers that are intended to support payments for
243	243	a facility under par. (a) that exceed $300,000 without approval from the joint
244	244	committee on finance.
245	245	SECTION 8.0Nonstatutory provisions.
246	246	(1) EMERGENCY RULES. The department of natural resources shall use the
247	247	procedure under s. 227.24 to promulgate rules under s. 289.41 (3m) no later than the
248	248	first day of the 7th month beginning after the effective date of this subsection.
249	249	Notwithstanding s. 227.24 (1) (c) and (2), emergency rules promulgated under this
250	250	subsection remain in effect until the first day of the 36th month beginning after the
251	251	effective date of the emergency rules or the date on which permanent rules take
252	252	effect, whichever is earlier. Rules promulgated under this subsection shall, at a
253	253	minimum, reflect the minimum financial requirements established in s. 289.41 (3m)
254	254	and in 40 CFR 258.74 (f), as amended. Notwithstanding s. 227.24 (1) (a) and (3), the
255	255	department of natural resources is not required to provide evidence that
256	256	promulgating a rule under this subsection as an emergency rule is necessary for the
257	257	preservation of public peace, health, safety, or welfare and is not required to provide
258	258	a finding of emergency for a rule promulgated under this subsection.
259	259	(END)
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