Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB624 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Date of enactment: March 14, 2024
2		-	2023 Senate Bill 624 Date of publication*: March 15, 2024
3		-	2023 WISCONSIN ACT 107
4		-	AN ACT to amend 20.370 (4) (dq), 289.41 (3) (c), 289.41 (11) (a) 4. and 289.68 (1); and to create 20.370 (4) (dr),
5		-	289.41 (3m) and 289.68 (4m) of the statutes; relating to: method for establishing proof of financial responsibility
6		-	for municipal solid waste facilities; payments for closure, long−term care, and corrective action costs for certain solid
7		-	or hazardous waste facilities; extending the time limit for emergency rule procedures; providing an exemption from
8		-	emergency rule procedures; granting rule−making authority; and making an appropriation.
9		-	The people of the state of Wisconsin, represented in
10		-	senate and assembly, do enact as follows:
11		-	SECTION 1. 20.370 (4) (dq) of the statutes is amended
12		-	to read:
13		-	20.370 (4) (dq) Solid waste management — waste
14		-	management fund. From the waste management fund, all
15		-	moneys received in the waste management fund, except
16		-	moneys appropriated under pars. (dr), (dt), (dy) and (dz),
17		-	for the purpose of administering a program of corrective
18		-	action, closure, and long−term care of and environmental
19		-	repairs to solid and hazardous waste facilities under s.
20		-	289.68.
21		-	SECTION 2. 20.370 (4) (dr) of the statutes is created
22		-	to read:
23		-	20.370 (4) (dr) Solid waste management — depart-
24		-	ment action on corrective action, closure, and long−term
25		-	care. From the waste management fund, all moneys
26		-	received under s. 289.68 (4m) (b) for the purpose of
27		-	administering a program of corrective action, closure,
28		-	and long−term care of solid and hazardous waste facili-
29		-	ties under s. 289.68 (4m) (a).
30		-	SECTION 3. 289.41 (3) (c) of the statutes is amended
31		-	to read:
32		-	289.41 (3) (c) Changes. The owner or operator may
33		-	change from one standard method of establishing proof
34		-	of financial responsibility under par. (a) to another or
35		-	standard method under par. (a), to an alternative method
36		-	under sub. (3m), or to a net worth method of establishing
37		-	proof of financial responsibility under sub. (4).
38		-	SECTION 4. 289.41 (3m) of the statutes is created to
39		-	read:
40		-	289.41 (3m) ALTERNATIVE METHOD OF ESTABLISHING
41		-	FINANCIAL RESPONSIBILITY FOR SOLID WASTE DISPOSAL
42		-	FACILITIES; MINIMUM FINANCIAL STANDARDS FOR MUNICI-
43		-	PALITIES. (a) Alternative method requirements. A munic-
44		-	ipality may establish proof of financial responsibility for
45		-	solid waste disposal facilities as required under sub. (2)
46		-	by applying to the department and meeting the alternative
47		-	method requirements. The department shall establish by
48		-	rule the minimum financial requirements for a munici-
49		-	pality to establish proof of financial responsibility under
50		-	this subsection. If a facility is owned or operated by more
51		-	than one municipality, any such municipality may estab-
52		-	lish proof of financial responsibility under this subsec-
53		-	tion on behalf of itself and the other municipalities that
54		-	are owners or operators. A municipality that seeks to
55		-	* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
56		-	partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 107 2023 Senate Bill 624
57		-	establish proof of financial responsibility under this sub-
58		-	section shall satisfy the minimum financial requirements
59		-	established by rule and all of the following requirements:
60		-	1. If the municipality has any outstanding, rated, gen-
61		-	eral obligation bonds, none have been rated lower than
62		-	“Baa” as issued by Moody’s Investors Service or “BBB”
63		-	as issued by Standard & Poor’s Corporation.
64		-	2. The municipality’s most recent audited annual
65		-	financial statement shows a ratio of cash plus marketable
66		-	securities to total expenditures of not less than 0.05, and
67		-	a ratio of annual debt service to total expenditures of not
68		-	greater than 0.20.
69		-	(b) Failure to meet alternative method requirements.
70		-	If at any time the department determines that a munici-
71		-	pality does not meet the minimum financial requirements
72		-	under par. (a) 1. and 2. and established by rule, the munic-
73		-	ipality shall, within 45 days of the department’s determi-
74		-	nation, establish proof of financial responsibility using
75		-	one of the standard methods under sub. (3).
76		-	SECTION 5. 289.41 (11) (a) 4. of the statutes is
77		-	amended to read:
78		-	289.41 (11) (a) 4. The department may request the
79		-	department of justice to initiate court action against the
80		-	owner or operator to recover moneys sufficient to pay the
81		-	cost of complying with the closure and long−term care
82		-	requirements of the specified in any rule, order, plan of
83		-	operation, or other plan approval or approved plan under
84		-	s. 291.29. Any moneys recovered in this type of action
85		-	or as a settlement in anticipation of this type of action
86		-	shall be credited to the waste management fund.
87		-	SECTION 6. 289.68 (1) of the statutes is amended to
88		-	read:
89		-	289.68 (1) PAYMENTS FROM THE WASTE MANAGEMENT
90		-	FUND. The department may expend moneys in the waste
91		-	management fund only for the purposes specified under
92		-	subs. (3) to (6) and 1991 Wisconsin Act 39, section 9142
93		-	(2w). The department may expend moneys appropriated
94		-	under s. 20.370 (4) (dq) for the purposes specified under
95		-	subs. (3) and (5) and 1991 Wisconsin Act 39, section
96		-	9142 (2w). The department may expend moneys appro-
97		-	priated under s. 20.370 (4) (dt) for the purposes specified
98		-	under sub. (4). The department may expend moneys
99		-	appropriated under s. 20.370 (4) (dy) and (dz) for the pur-
100		-	poses specified under sub. (6). The department may
101		-	expend moneys appropriated under s. 20.370 (4) (dr) for
102		-	the purposes specified under sub. (4m).
103		-	SECTION 7. 289.68 (4m) of the statutes is created to
104		-	read:
105		-	289.68 (4m) PAYMENTS OF CLOSURE, LONG−TERM
106		-	CARE, AND CORRECTIVE ACTION COSTS. (a) Payments. The
107		-	department may expend moneys appropriated under s.
108		-	20.370 (4) (dr) to pay costs associated with closure, long−
109		-	term care requirements, and corrective action for a facil-
110		-	ity that has established proof of financial responsibility
111		-	under s. 289.41 (3m) or (4), if the owner or operator of the
112		-	facility has failed to comply with closure, long−term
113		-	care, or corrective action requirements specified in any
114		-	rule, order, plan of operation, or other plan approval and
115		-	if any of the following applies:
116		-	1. The owner or operator’s failure to comply is due
117		-	to bankruptcy, insolvency, or other inability to pay the
118		-	costs.
119		-	2. The department determines that the failure to com-
120		-	ply presents an imminent or substantial danger to human
121		-	health or the environment.
122		-	(b) Transfer of funds; joint finance approval. The
123		-	department may transfer money from the appropriation
124		-	account under s. 20.370 (4) (dq) to the appropriation
125		-	account under s. 20.370 (4) (dr) for the purposes speci-
126		-	fied under par. (a). The department shall notify the joint
127		-	committee on finance of transfers that are intended to
128		-	support payments for a facility under par. (a) that do not
129		-	exceed $300,000. The department may not make any
130		-	transfers that are intended to support payments for a facil-
131		-	ity under par. (a) that exceed $300,000 without approval
132		-	from the joint committee on finance.
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	3	+	2023 - 2024 LEGISLATURE
	4	+	2023 SENATE BILL 624
	5	+	November 7, 2023 - Introduced by Senator J ACQUE, cosponsored by
	6	+	Representatives MURSAU and SCHMIDT. Referred to Committee on
	7	+	Transportation and Local Government.
	8	+	*AUTHORS SUBJECT TO CHANGE*
	9	+	AN ACT to amend 20.370 (4) (dq), 289.41 (3) (c), 289.41 (11) (a) 4. and 289.68 (1);
	10	+	and to create 20.370 (4) (dr), 289.41 (3m) and 289.68 (4m) of the statutes;
	11	+	relating to: method for establishing proof of financial responsibility for
	12	+	municipal solid waste facilities; payments for closure, long-term care, and
	13	+	corrective action costs for certain solid or hazardous waste facilities; extending
	14	+	the time limit for emergency rule procedures; providing an exemption from
	15	+	emergency rule procedures; granting rule-making authority; and making an
	16	+	appropriation.
	17	+	Analysis by the Legislative Reference Bureau
	18	+	Proof of financial responsibility for municipal solid waste facilities
	19	+	This bill provides an alternative method for a municipality to establish the
	20	+	proof of financial responsibility required for a solid waste facility.
	21	+	Under current law, the owner or operator of a solid or hazardous waste storage,
	22	+	treatment, or disposal facility (owner or operator) must maintain proof of financial
	23	+	responsibility to ensure the availability of funds for compliance with closure and
	24	+	long-term care requirements and, if necessary, for taking any required corrective
	25	+	action in the event of a spill or leak. The standard method for proving financial
	26	+	responsibility is to obtain, for example, a bond, deposit, escrow account, or
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	36	+	SENATE BILL 624
	37	+	irrevocable trust that is payable to or established for the benefit of the Department
	38	+	of Natural Resources. Alternatively, current law allows an owner or operator that
	39	+	is a for-profit business or a public heat, light, water, or power utility to establish
	40	+	proof of financial responsibility to ensure compliance with closure and long-term
	41	+	care requirements using a net worth test. The net worth test requires, among other
	42	+	things, a certain level of net worth, liabilities to net worth ratio, and credit
	43	+	worthiness.
	44	+	This bill allows a municipality that owns or operates a solid waste facility to use
	45	+	an alternative method to establish proof of financial responsibility to ensure
	46	+	compliance with closure and long-term care requirements and any required
	47	+	corrective action, similar to the method allowed for local governments under federal
	48	+	law. Under the bill, a municipality may prove financial responsibility by showing
	49	+	either that all of its outstanding general obligation bonds have a rating of at least
	50	+	“Baa” if issued by Moody's or at least “BBB” if issued by Standard & Poor's, or that
	51	+	its ratio of cash plus marketable securities to total expenditures is 0.05 or greater and
	52	+	that its ratio of annual debt service to total expenditures is 0.20 or lower. Under the
	53	+	bill, if a solid waste facility is owned or operated by more than one municipality, any
	54	+	of the municipalities may establish proof of financial responsibility on behalf of itself
	55	+	and the other owners or operators. The bill also requires DNR to establish additional
	56	+	rules relating to the alternative method established under this bill.
	57	+	Payment of closure, long-term care, and corrective action costs
	58	+	This bill also allows DNR to pay costs associated with closure and long-term
	59	+	care requirements and any required corrective action for a solid or hazardous waste
	60	+	storage, treatment, or disposal facility that has established proof of financial
	61	+	responsibility using either the net worth test or the alternative method for municipal
	62	+	facilities that is created under the bill. The bill allows DNR to pay these costs if the
	63	+	owner or operator has failed to comply with closure, long-term care, or corrective
	64	+	action requirements specified in any rule, order, plan of operation, or other plan
	65	+	approval and if either 1) the owner or operator's failure to comply is due to
	66	+	bankruptcy, insolvency, or other inability to pay the costs, or 2) DNR determines that
	67	+	the failure to comply presents an imminent or substantial danger to human health
	68	+	or the environment.
	69	+	To cover these costs, the bill allows DNR to transfer moneys from an existing
	70	+	appropriation account, which is funded from the segregated waste management
	71	+	fund, to a new appropriation account dedicated to this purpose. Under the bill, DNR
	72	+	must request approval from the Joint Committee on Finance for any transfers that
	73	+	are intended to support payments for a facility that exceed $300,000, and must notify
	74	+	JCF of all other transfers.
	75	+	For further information see the state and local fiscal estimate, which will be
	76	+	printed as an appendix to this bill.
	77	+	The people of the state of Wisconsin, represented in senate and assembly, do
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	81	+	SECTION 1
	82	+	SENATE BILL 624
	83	+	SECTION 1. 20.370 (4) (dq) of the statutes is amended to read:
	84	+	20.370 (4) (dq) Solid waste management — waste management fund. From the
	85	+	waste management fund, all moneys received in the waste management fund, except
	86	+	moneys appropriated under pars. (dr), (dt), (dy) and (dz), for the purpose of
	87	+	administering a program of corrective action, closure, and long-term care of and
	88	+	environmental repairs to solid and hazardous waste facilities under s. 289.68.
	89	+	SECTION 2. 20.370 (4) (dr) of the statutes is created to read:
	90	+	20.370 (4) (dr) Solid waste management — department action on corrective
	91	+	action, closure, and long-term care. From the waste management fund, all moneys
	92	+	received under s. 289.68 (4m) (b) for the purpose of administering a program of
	93	+	corrective action, closure, and long-term care of solid and hazardous waste facilities
	94	+	under s. 289.68 (4m) (a).
	95	+	SECTION 3. 289.41 (3) (c) of the statutes is amended to read:
	96	+	289.41 (3) (c) Changes. The owner or operator may change from one standard
	97	+	method of establishing proof of financial responsibility under par. (a) to another or
	98	+	standard method under par. (a), to an alternative method under sub. (3m), or to a net
	99	+	worth method of establishing proof of financial responsibility under sub. (4).
	100	+	SECTION 4. 289.41 (3m) of the statutes is created to read:
	101	+	289.41 (3m) ALTERNATIVE METHOD OF ESTABLISHING FINANCIAL RESPONSIBILITY FOR
	102	+	SOLID WASTE DISPOSAL FACILITIES; MINIMUM FINANCIAL STANDARDS FOR MUNICIPALITIES. (a)
	103	+	Alternative method requirements. A municipality may establish proof of financial
	104	+	responsibility for solid waste disposal facilities as required under sub. (2) by applying
	105	+	to the department and meeting the alternative method requirements. The
	106	+	department shall establish by rule the minimum financial requirements for a
	107	+	municipality to establish proof of financial responsibility under this subsection. If
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	134	+	SECTION 4 SENATE BILL 624
	135	+	a facility is owned or operated by more than one municipality, any such municipality
	136	+	may establish proof of financial responsibility under this subsection on behalf of
	137	+	itself and the other municipalities that are owners or operators. A municipality that
	138	+	seeks to establish proof of financial responsibility under this subsection shall satisfy
	139	+	the minimum financial requirements established by rule and all of the following
	140	+	requirements:
	141	+	1. If the municipality has any outstanding, rated, general obligation bonds,
	142	+	none have been rated lower than “Baa” as issued by Moody's Investors Service or
	143	+	“BBB” as issued by Standard & Poor's Corporation.
	144	+	2. The municipality's most recent audited annual financial statement shows
	145	+	a ratio of cash plus marketable securities to total expenditures of not less than 0.05,
	146	+	and a ratio of annual debt service to total expenditures of not greater than 0.20.
	147	+	(b) Failure to meet alternative method requirements. If at any time the
	148	+	department determines that a municipality does not meet the minimum financial
	149	+	requirements under par. (a) 1. and 2. and established by rule, the municipality shall,
	150	+	within 45 days of the department's determination, establish proof of financial
	151	+	responsibility using one of the standard methods under sub. (3).
	152	+	SECTION 5. 289.41 (11) (a) 4. of the statutes is amended to read:
	153	+	289.41 (11) (a) 4. The department may request the department of justice to
	154	+	initiate court action against the owner or operator to recover moneys sufficient to pay
	155	+	the cost of complying with the closure and long-term care requirements of the
	156	+	specified in any rule, order, plan of operation, or other plan approval or approved plan
	157	+	under s. 291.29. Any moneys recovered in this type of action or as a settlement in
	158	+	anticipation of this type of action shall be credited to the waste management fund.
	159	+	SECTION 6. 289.68 (1) of the statutes is amended to read:
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	187	+	SECTION 6
	188	+	SENATE BILL 624
	189	+	289.68 (1) PAYMENTS FROM THE WASTE MANAGEMENT FUND. The department may
	190	+	expend moneys in the waste management fund only for the purposes specified under
	191	+	subs. (3) to (6) and 1991 Wisconsin Act 39, section 9142 (2w). The department may
	192	+	expend moneys appropriated under s. 20.370 (4) (dq) for the purposes specified under
	193	+	subs. (3) and (5) and 1991 Wisconsin Act 39, section 9142 (2w). The department may
	194	+	expend moneys appropriated under s. 20.370 (4) (dt) for the purposes specified under
	195	+	sub. (4). The department may expend moneys appropriated under s. 20.370 (4) (dy)
	196	+	and (dz) for the purposes specified under sub. (6). The department may expend
	197	+	moneys appropriated under s. 20.370 (4) (dr) for the purposes specified under sub.
	198	+	(4m).
	199	+	SECTION 7. 289.68 (4m) of the statutes is created to read:
	200	+	289.68 (4m) PAYMENTS OF CLOSURE, LONG-TERM CARE, AND CORRECTIVE ACTION
	201	+	COSTS. (a) Payments. The department may expend moneys appropriated under s.
	202	+	20.370 (4) (dr) to pay costs associated with closure, long-term care requirements, and
	203	+	corrective action for a facility that has established proof of financial responsibility
	204	+	under s. 289.41 (3m) or (4), if the owner or operator of the facility has failed to comply
	205	+	with closure, long-term care, or corrective action requirements specified in any rule,
	206	+	order, plan of operation, or other plan approval and if any of the following applies:
	207	+	1. The owner or operator's failure to comply is due to bankruptcy, insolvency,
	208	+	or other inability to pay the costs.
	209	+	2. The department determines that the failure to comply presents an imminent
	210	+	or substantial danger to human health or the environment.
	211	+	(b) Transfer of funds; joint finance approval. The department may transfer
	212	+	money from the appropriation account under s. 20.370 (4) (dq) to the appropriation
	213	+	account under s. 20.370 (4) (dr) for the purposes specified under par. (a). The
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	240	+	SECTION 7 SENATE BILL 624
	241	+	department shall notify the joint committee on finance of transfers that are intended
	242	+	to support payments for a facility under par. (a) that do not exceed $300,000. The
	243	+	department may not make any transfers that are intended to support payments for
	244	+	a facility under par. (a) that exceed $300,000 without approval from the joint
	245	+	committee on finance.
133	246		SECTION 8.0Nonstatutory provisions.
134		-	(1) EMERGENCY RULES. The department of natural
135		-	resources shall use the procedure under s. 227.24 to pro-
136		-	mulgate rules under s. 289.41 (3m) no later than the first
137		-	day of the 7th month beginning after the effective date of
138		-	this subsection. Notwithstanding s. 227.24 (1) (c) and (2),
139		-	emergency rules promulgated under this subsection
140		-	remain in effect until the first day of the 36th month
141		-	beginning after the effective date of the emergency rules
142		-	or the date on which permanent rules take effect, which-
143		-	ever is earlier. Rules promulgated under this subsection
144		-	shall, at a minimum, reflect the minimum financial
145		-	requirements established in s. 289.41 (3m) and in 40 CFR
146		-	258.74 (f), as amended. Notwithstanding s. 227.24 (1)
147		-	(a) and (3), the department of natural resources is not
148		-	required to provide evidence that promulgating a rule
149		-	under this subsection as an emergency rule is necessary
150		-	for the preservation of public peace, health, safety, or
151		-	welfare and is not required to provide a finding of emer-
152		-	gency for a rule promulgated under this subsection.
	247	+	(1) EMERGENCY RULES. The department of natural resources shall use the
	248	+	procedure under s. 227.24 to promulgate rules under s. 289.41 (3m) no later than the
	249	+	first day of the 7th month beginning after the effective date of this subsection.
	250	+	Notwithstanding s. 227.24 (1) (c) and (2), emergency rules promulgated under this
	251	+	subsection remain in effect until the first day of the 36th month beginning after the
	252	+	effective date of the emergency rules or the date on which permanent rules take
	253	+	effect, whichever is earlier. Rules promulgated under this subsection shall, at a
	254	+	minimum, reflect the minimum financial requirements established in s. 289.41 (3m)
	255	+	and in 40 CFR 258.74 (f), as amended. Notwithstanding s. 227.24 (1) (a) and (3), the
	256	+	department of natural resources is not required to provide evidence that
	257	+	promulgating a rule under this subsection as an emergency rule is necessary for the
	258	+	preservation of public peace, health, safety, or welfare and is not required to provide
	259	+	a finding of emergency for a rule promulgated under this subsection.
	260	+	(END)
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