Wis. Admin. Code Department of Natural Resources NR 162.43

Current through August 26, 2024

Section NR 162.43 - Determination of interest rate subsidy

(1) GENERAL. Interest rate subsidies shall be set in accordance with s. 281.58 (8) (j) and (12) (a), Stats., and this section. Subsidies are not available for interest payments that were due to the BCPL prior to the execution of an interest rate subsidy agreement with the department.

(2) PROJECT COST CATEGORIES.

(a) The department shall classify eligible costs of projects and portions of projects according to s. NR 162.10 (1) (a) and (c).

(b) Costs described in ss. NR 162.04 (1) (b), 162.22, and 162.23 (1) (a) and (b) are not eligible for interest rate subsidy.

(3) PROJECT INTEREST RATE CALCULATION. The department shall calculate the project interest rate according to s. NR 162.10 (2).

Note: Section NR 162.10 (1) (b) does not apply to projects subsidized under this subchapter.

(4) CALCULATION OF INTEREST RATE SUBSIDY.

(a) Only that portion of the recipient's BCPL loan that is used for a scored project is eligible for interest rate subsidy.

(b) The maximum amount of project costs eligible for interest rate subsidy is the total eligible costs of the scored project multiplied by the parallel cost percentage as determined under the applicable requirements of s. NR 162.04 (1) (c).

(c) The interest rate subsidy shall be based on the market interest rate in effect at the time the interest rate subsidy agreement is executed.

(d) The department shall calculate the interest rate subsidy as follows:

1. Loan ratio = Eligible principal / Loan principal

Where:

Loan ratio . . . is the percentage of the BCPL loan principal that is eligible for interest rate subsidy.

Eligible principal . . . is the lesser of the BCPL loan amount eligible for interest rate subsidy under par. (a) or the CWFP project costs eligible for subsidy under par. (b).

Loan principal . . . is the original total BCPL loan amount.

2. Interest ratio = (Interest rate - Project rate) / Interest rate

Where:

Interest ratio . . . is the interest rate subsidy as a percentage applicable interest rate, before adjusting for the eligible share of BCPL loan principal.

Interest rate . . . is the lesser of the market interest rate or the interest rate on the BCPL loan.

Project rate . . . is the project interest rate calculated under s. NR 162.10 (2) (b).

3. Subsidy ratio = Interest ratio * Loan ratio.

4. Annual interest rate subsidy = Interest charged on BCPL loan * Subsidy ratio.

Where:

Annual interest rate subsidy . . . is the dollar amount of the subsidy provided to the municipal recipient in a given year, based on the interest amount billed to the municipality that year for the BCPL loan.

Interest charged on BCPL loan . . . is the amount of interest charged by the BCPL for the applicable loan in a given year.

Subsidy ratio . . . is the subsidy ratio calculated in subd. 3., which is the percentage to be applied to interest charged on a BCPL loan in a given year to calculate the appropriate amount of interest rate subsidy to provide the municipality in that year. The subsidy ratio shall not be less than zero percent or greater than 100 percent.

Wis. Admin. Code Department of Natural Resources NR 162.43

CR 03-027: cr. Register November 2003 No. 575, eff. 12-1-03.

Amended by, CR 14-043: cr. Register June 2015 No. 714, eff.7/1/2015.

Adopted by, CR 22-045: cr. Register October 2023 No. 814, eff. 11/1/2023

DOA annually calculates the interest rate subsidy amount for each CWFP interest rate subsidy agreement still in effect. The amount provided to the municipality in a given year is based on information supplied by the BCPL regarding the amount of interest charged during that year on each outstanding BCPL loan associated with a CWFP interest rate subsidy agreement. The BCPL determines the type of municipal obligation that is required for the repayment of its loan.