Section NR 166.06 - Project eligibility(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: (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.(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: 1. Rehabilitate or develop sources to replace contaminated sources, excluding open reservoirs, dams, dam rehabilitation, and water rights.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.3. Install or upgrade storage facilities, including finished water reservoirs, to prevent microbiological contaminants from entering the public water system.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.(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.(d) Purchase a portion of another public water system's capacity if it is the most cost-effective solution.(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.(f) Create a new community water system or expand an existing community water system that, upon completion, will address an existing public health threat from contaminated drinking water provided by individual wells or surface water sources. Projects to address existing public health threats associated with individual wells or surface water sources shall be limited in scope to the specific geographic area affected by contamination and shall be a cost-effective solution to resolve the problem threatening public health. Projects under this paragraph must meet all of the following criteria: 1. The municipality submits documentation, such as well sampling results, showing that the MCL for a microbiological, nitrate or nitrite, or chronic contaminant is exceeded by 40 percent or more of the individual wells or surface water sources within the affected area; or, for other public health threats, the municipality submits hydrogeological data or other documentation that indicates contamination is imminent.2. The department determines that a community water system is a necessary and appropriate response to the contamination.(2) INELIGIBLE PROJECTS. The department may determine that an entire project or a portion of a project is ineligible for SDWLP financial assistance. 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 financial assistance provided to reflect the appropriate proportion of eligible to ineligible project costs, or both, in the financial assistance agreement. The following types of projects or portions of projects are not eligible for financial assistance under this chapter:(a) Building or rehabilitating a dam.(b) Purchasing or selling water rights, except if the water rights are owned by a public water system that is being purchased through consolidation as part of a capacity development strategy.(c) Developing an open reservoir unless the reservoir is part of the treatment process and is located on the property on which the water treatment facility is located. Note: A finished water reservoir or a reservoir that is part of the treatment process and located on the property where the treatment facility is located is eligible under sub. (1) (b) 3.
(d) A project or a portion of a project needed primarily for fire protection.(e) A project for a public water system that lacks adequate technical, managerial, and financial capability, unless assistance will ensure compliance.(f) A project for a water system determined to be a significant noncomplier unless funding will ensure compliance with safe drinking water act requirements.(g) A project or a portion of a project primarily intended to serve future growth.(h) A project or a portion of a project for water systems owned by state or federal agencies.(i) A project not reasonably necessary and appropriate to address a public health concern.(j) Any portion of a project that is not reasonably necessary and appropriate to address a public health concern within the scope of the scored project, except when approved by the department as eligible and necessary for the efficient operation or integrity of the overall water system.(k) Except for a project for which the project type falls under sub. (1) (c) or (d), any project from which no construction costs are to be funded through the SDWLP, 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.(L) Any project that will serve 2 or more municipalities and to which any of the following applies, unless the applicant provides documentation that meets the requirements described under s. NR 166.08 (4) (i):1. The applicant will obtain water from another municipality's water facilities.2. The applicant is providing water to another municipality.(m) Projects of a municipality that is failing to substantially comply with conditions or requirements of s. 281.58 or 281.59, Stats., ch. Adm 35, this chapter, an existing financial assistance agreement with the SDWLP or the clean water fund program, or the terms of a federal or state grant used to pay the costs to plan, design, or construct a water system.Wis. Admin. Code Department of Natural Resources NR 166.06
CR 06-023: cr. Register May 2007 No. 617, eff. 6-1-07.Amended by, CR 14-044: cr. Register June 2015 No. 714, eff. 7-1-15. correction in (2) (m) made under s. 35.17Register June 2015 No. 714, eff.7/1/2015.Adopted by, CR 22-068: cr. Register October 2023 No. 814, eff. 11/1/2023