Section NR 120.13 - Cost-share agreement(1) PURPOSE OF AGREEMENT. The cost-share agreement is an agreement listing the best management practices and establishing the conditions and considerations under which a cost-share recipient agrees to install the practices listed consistent with the watershed plan.(2) EFFECTIVE DATE. For best management practices to be eligible for cost-sharing, the nonpoint source grant agreement and the cost-share agreement shall be signed before the installation of practices may be initiated. A cost-share agreement is not necessary if the nonpoint source grant agreement allows the grantee to use funds directly. Nonpoint source grant agreements used in lieu of cost-share agreements shall comply with the requirements in this section.(3) PARTIES TO THE AGREEMENT. (a) The cost-share agreement shall be between the participating grantee and the individual landowner or landowners if joint owners, land operator or state agency. Agreements with land operators shall be co-signed by the landowner except in instances where the cost-share agreement contains no other practices than those enumerated in sub. (6) (c) 2. If other practices are included in a cost-share agreement amendment, the landowner shall co-sign the amendment.(b) Governmental units, as cost-share agreement grantors, shall enter into cost-share agreements only during the period specified in the nonpoint source grant.(c) The cost-share agreement shall apply to all contiguous sites under the same ownership. At the discretion of the governmental unit, the cost-share agreement may also apply to noncontiguous sites under the same ownership or operation in the watershed.(4) CONTENT OF THE AGREEMENT. The cost-share agreement shall contain or describe: (a) The name and address of the cost-share recipient.(b) The best management practices cost-shared and not cost-shared to be applied and the cost-share rates for the practices to be cost-shared.(c) The estimated total practice cost, cost-share rate and estimated cost-share amount.(d) The installation schedule for applying the practices. For sites that meet the critical sites criteria, implementation shall begin within 18 months and be completed within 4 years following the effective date of the cost-share agreement.(e) A statement of maintenance requirements.(f) A prohibition against adopting any land use or practice which defeats the purposes of the best management practices, the cost-share agreement or the nonpoint source grant agreement.(g) A provision stating that the governmental unit shall provide appropriate technical assistance during the required operation and maintenance period of the best management practices.(h) A provision that the cost-share recipient may not discriminate against a contractor on the basis of age, sex, religion or other prohibited factor.(i) A provision describing the procedure for amendment.(j) The location of the land on which the cost-shared practice is to be installed, and a specific legal description of the land if cost share payments may exceed $10,000.(k) A prohibition against any significant change in land use or management on the entire property described on the cost-share agreement which may cause sources which were adequately managed at the time of cost-share agreement signing to produce a significant increase in pollutant loading to surface water or groundwater counter to the water resource objectives of the approved watershed plan. If a significant change in land use or management occurs, the landowner or land operator shall control the source at his or her own expense or return any cost-sharing funds awarded through the cost-share agreement to the grantor.(L) A requirement to amend the cost-share agreement if practices are added or deleted and to add or delete practices only when they are consistent with watershed project objectives.(m) A requirement for annual progress in pollutant reduction may be imposed by the governmental unit on the landowner of a critical site, subject to availability of cost-sharing funds.(4m) DEPARTMENT APPROVAL. The governmental unit shall obtain prior department approval when the total cost-share agreement amount, including amendments, exceeds $50,000 in state share. The department shall consider the cost-effectiveness of the best management practices and eligibility for cost-sharing under this chapter in making its decision whether to grant approval.(5) SUBMITTAL TO DEPARTMENT. The cost-share agreement provider shall submit a copy of the cost-share agreement and amendments to the department within 30 days of execution. The department may deny reimbursement to the governmental unit for costs associated with the installation of a best management practice not in conformance with the cost-share agreement, the nonpoint source grant agreement or the priority watershed plan.(6) AGREEMENT PERIOD. (a) The cost-share agreement period shall be the period from the cost-share agreement signing through 10 years after the last practice is installed, unless all practices in the agreement are those identified in par. (c) 2., in which case the agreement shall end when cost-sharing ceases.(b) The period during which practices on a signed cost-share agreement may be installed may not extend beyond the grant period of the nonpoint source grant agreement for the watershed project.(c) Unless otherwise provided for in this paragraph, the operation and maintenance period for both cost-shared and not cost-shared best management practices shall begin when the practice is installed and shall end at least 10 years past the installation date for the last practice on the agreement. 1. The operation and maintenance period shall be a minimum of 15 years if a payment is made under s. NR 120.18(1) (f) 2.2. Except if required as a component of another practice, the following practices are exempt from the multi-year operation and maintenance period requirement and only need to be maintained during the years for which cost-sharing is received: a. High residue management systems.d. Cropland protection cover (green manure).3. When a practice in subd. 2. is required as a component of another practice in s. NR 154.04, the operation and maintenance period for the component practice shall be the same as the operation and maintenance period for the practice for which it is required.(7) FAILURE TO FULFILL AGREEMENT. If the cost-share recipient fails to fulfill any terms of the cost-share agreement, including failing to install, operate and properly maintain the practices of the agreement, the full amount of cost-shared funds received by the cost-share recipient shall be repaid to the governmental unit who is the grantor of the agreement. The governmental unit grantor shall forward the repayment to the department.(8) INEFFECTIVE PRACTICES. (a) If the practice becomes ineffective during the grant period of the nonpoint source grant agreement of a watershed project, the parties to the cost-share agreement may amend it to cost-share the replacement of the practice from funds allocated for the project, if the parties identify the appropriate maintenance period for the replacement practice.(b) If the practice becomes ineffective beyond the grant period of the nonpoint source grant agreement of the watershed project, the department may award a new grant agreement or modify and extend the project's nonpoint source grant agreement.(9) CHANGE IN OWNERSHIP. If a change in ownership occurs during the cost-share agreement period, the new landowner shall be responsible for fulfilling all conditions of the cost-share agreement. Upon receiving written approval from the respective local governmental unit, the new landowner may implement alternative approved best management practices in order to obtain the water quality goals in the original agreement.(10) RECORDING OF COST-SHARE AGREEMENTS WITH REGISTER OF DEEDS. (a) The governmental unit shall record the cost-share agreement and its amendments in the office of the register of deeds for each county in which the property is located if the cost-share agreement includes a riparian buffer, or payments under s. NR 154.03(1) (i) 3., or if the total cost-share agreement amount exceeds the following: 1. $10,000 prior to January 1, 2005.2. $12,000 after December 31, 2004 and prior to January 1, 2010.3. $14,000 after December 31, 2009.(b) The governmental unit shall record these documents prior to making reimbursements to the landowner or land operator.(c) A cost-share agreement may be exempt from the recording requirement if the cost-share agreement contains no other practices than the following: 2. Contour and field stripcropping.3. Cropland protection cover (green manure).4. High residue management.(11) RELEASE OF PROPERTY FROM OBLIGATIONS OF COST-SHARE AGREEMENTS.(a) A governmental unit may fully or partially release a landowner's property from the obligations of the cost-share agreement provided that the governmental unit has determined that the best management practices installed on the property will be maintained or replaced with practices which will not increase the pollutant loading to surface water or groundwater counter to the water resource objectives of the approved watershed plan. If state dollars in excess of $10,000 have been expended for best management practices that are located on the property to be released, the governmental unit shall obtain written approval from the department before the property may be released. The release form shall be obtained from the department and filed with the cost-share agreement.(b) With the approval of the department, a governmental unit may fully release a landowner's property from the obligations of the cost-share agreement provided that both of the following conditions are met:1. The governmental unit has determined that there are not sufficient cost-share funds remaining in its nonpoint source grant to provide reimbursement for practices for which it has committed funds.2. The cost-share recipient has failed to install all of the best management practices identified in the agreement. Note: Copies of the release form are available from the Bureau of Community Financial Assistance, Department of Natural Resources, Box 7921, Madison, WI 53707.
(12) APPLICABILITY. Subsections (3) (c), (4) (j), (k), (m), (6) (a), (9) and (10) apply to all cost-share agreements signed after December 1, 1989, and amendments to those agreements.Wis. Admin. Code Department of Natural Resources NR 120.13
CR 00-028: cr. Register September 2002 No. 561, eff. 10-1-02.