There are no federal regulations related to this rule.

There are no similar programs in surrounding states.

DATCP worked with the Wisconsin honey producers association to develop this rule. Analytical methodologies prescribed by this rule are those prescribed by the Codex Alimentarius.

This rule will not have any environmental impact.

This rule will prohibit the fraudulent sale of adulterated or non-honey products as “honey." The prohibition will benefit honest producers and sellers of honey. This rule makes no exemption for small businesses, because small businesses as well as large businesses must refrain from fraudulent practices.

This rule also creates a “Wisconsin certified honey" program. Under this program, a honey producer may voluntarily apply to DATCP for approval to sell honey as “Wisconsin certified honey" (DATCP approval is not required to sell honey, unless the honey is represented “Wisconsin certified honey"). “Wisconsin certified honey" must be collected from hives in this state, and must comply with the honey standard of identity in this rule. The producer must submit annual lab test results to document compliance with the standard of identity. There is an annual fee of $50.

DATCP estimates that 50 of the 900 honey producers in Wisconsin will apply each year for approval to sell their honey as “Wisconsin certified honey." Most, if not all, of those producers are “small businesses." Participating producers will pay for annual lab testing and must pay a $50 annual fee to DATCP. However, participation is voluntary and there will not be a significant financial impact on participating producers.

This rule will not have a significant fiscal impact on state government. DATCP estimates that approximately 50 honey producers will apply each year for DATCP approval to sell their honey as “Wisconsin certified honey." Participating producers must pay a $50 annual fee, which will cover a portion of DATCP's costs. DATCP will absorb any remaining costs (including any costs to investigate the sale of adulterated or misbranded honey) with current budget and staff. This

Skya Murphy, Division of Food Safety, P.O. Box 8911, Madison, WI 53708-8911; email skya.murphy@wisconsin.gov; or by telephone at (608) 224-4712.

The Public Service Commission of Wisconsin proposes an order to repeal sections PSC 185.815, 185.84 and 185.87; renumber sections PSC 185.21 (intro.) and 185.22 (5); renumber and amend section PSC 185.33 (2); repeal and re-create Chapters PSC 184 and 185.85; and create sections PSC 185.12 (3e), (3m), (3s), (4m), (10e), (10m), (10s), (12m), (17m), (20g), (20r), (22), 185.21 (1) (title) and (2), 185.33 (1m), 185.89, 185.90 and subchapter IX of Chapter PSC 185 regarding water conservation and construction by water utilities and municipal combined water and sewer utilities.

NOTICE IS GIVEN that, pursuant to Wis. Stat. section 227.16 (2) (b), the Commission will hold a public hearing on these proposed rule changes as follows:

This building is accessible to people in wheelchairs through the Whitney Way (lobby) entrance. Handicapped parking is available on the south side of the building.

The Commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to get this document in a different format should contact the Water Conservation Coordinator, as indicated below, as soon as possible.

Jeff Ripp, Water Conservation Coordinator, at (608) 267-9813 or jeffrey.ripp@wisconsin.gov. Media questions should be directed to Matt Pagel, Interim Director of Public Affairs, at (608) 266-9600. Hearing - or speech-impaired individuals may also use the Commission's TTY number: If calling from Wisconsin, (800) 251-8345; if calling from outside Wisconsin, (608) 267-1479.

Any person may submit written comments on these proposed rules. The hearing record will be open for written comments from the public, effective immediately, and until Tuesday, August 2, 2011, at noon (Monday, August 1, 2011, at noon, if filed by fax). All written comments must include a reference on the filing to docket 1-AC-232. File by one mode only.

Industry:

File comments using the Electronic Regulatory Filing system. This may be accessed from the Commission's website at www.psc.wi.gov.

Members of the Public:

If filing electronically: Use the Public Comments system or the Electronic Regulatory Filing system. Both of these may be accessed from the Commission's website at www.psc.wi.gov.

If filing by mail, courier, or hand delivery: Address as shown above under Hearing Information.

If filing by fax: Send fax comments to (608) 266-3957. The fax filing cover sheet MUST state “Official Filing," the docket number 1-AC-232, and the number of pages (limited to 25 pages for fax comments).

Comments Due:

Tuesday, August 2, 2011 - Noon

Fax Due:

Monday, August 1, 2011 - Noon

Address Comments To:

Sandra J. Paske, Secretary of the Commission

Public Service Commission

P.O. Box 7854

Madison, WI 53707-7854

FAX: (608) 266-3957

The Great Lakes Compact, as promulgated in Chapter 281, Stats., and sections 196.02, 196.03, 196.10, 196.37, and 196.49, Stats.

This rule is authorized under ss. 196.02 (1) and (3), 196.12, 196.49, 227.11 and 281.346(8), Stats. Section 227.11, Stats., authorizes state agencies to promulgate administrative rules. Section 196.02 (1), Stats., authorizes the Public Service Commission (Commission) to do all things necessary and convenient to its jurisdiction. Section 196.02 (3), Stats., grants the Commission specific authority to promulgate rules. Section 196.12 authorizes the Commission to require utilities to report financial information, which includes expenditures on water conservation programs. Section 196.49 (3) authorizes the Commission to adopt rules regarding utility construction projects. Section 281.346 (8), Stats., directs the Commission to work in cooperation with the Departments of Natural Resources (DNR) and Commerce to develop and implement a statewide water conservation and efficiency program, including requirements for water public utilities.

The DNR and the Commission have overlapping jurisdiction for water conservation programs. Chapter NR 852 establishes a statewide water conservation program for all water users, including water public utilities. This program is implemented by the DNR and contains mandatory requirements for some water users, including water utilities in the Great Lakes watershed, as well as voluntary elements for other water users statewide. The DNR's regulatory authority extends beyond water public utilities to include any system that provides water for public use such as schools, mobile home parks, co-ops, and private wells that serve multiple homes or businesses. The Commission's authority is limited to water public utilities as defined under s. 196.01 (5) (a), Stats.

The DNR and the Commission also have overlapping jurisdiction in reviewing plans for the modification, extension, or construction of water public utility facilities. The DNR's regulatory authority is generally related to its role in protecting public health, while the Commission's authority is related to its role in regulating utilities generally. Under ch. NR 108, the DNR reviews any water utility extensions or alterations which may affect the quality or quantity of water delivered by an existing community water system, including wellhead protection plans for new wells serving municipal water systems. The Commission has the authority under s. 196.49, Stats., and ch. PSC 184, to review water public utility construction for public convenience and necessity. Utilities cannot proceed with construction unless the DNR approves the project and the Commission issues a certificate of public convenience and necessity. Further, s. 196.025 (2m), Stats., establishes a consultation process for the DNR and the Commission to cooperate on projects that require an environmental assessment or an environmental impact statement under s. 1.11, Stats.

The Commission regulates approximately 585 water public utilities, including several private water utilities and municipal combined water and sewer utilities. The Commission does not regulate municipally-owned sewer utilities. The proposed changes to chs. PSC 184 and 185 are intended to clarify the Commission's water conservation and construction requirements for water public utilities and to ensure that the Commission's rules are consistent with, but do not duplicate, DNR's programs. The proposed rules do all of the following:

1)   Add definitions for commonly used terms.

2)   Adopt a standardized water audit methodology and   water loss reporting requirement for water utilities.

3)   Establish criteria for voluntary utility-financed       water conservation programs.

4)   Establish or clarify requirements related to water       supply shortages and service interruptions.

5)   Update and clarify the Commission's rules and       procedures for approving water utility construction   projects.

The Commission reviews and approves major utility construction projects to evaluate their impact on ratepayers. The proposed rule reorganizes, updates, and clarifies requirements for water utility construction authorization under ch. PSC 184. The proposed changes are intended to simplify the rules regarding review of construction projects by identifying the types of projects that require commission approval and listing the types of projects that are categorically exempt from review, such as de minimus cost projects, water main replacements, water meter replacement, routine maintenance, and repair.

The proposed rule identifies when a water utility is required to obtain Commission authorization before serving a new city, village or town. Under current practice, a water utility does not seek Commission authorization before it serves in a new township unless the township is already served by another water utility. This rule requires a water utility to receive Commission authorization before serving a new city, village or town, whether or not another utility is already serving the municipality.

The proposed rule requires a person to seek Commission authorization before deregulating utility sewer facilities.

The proposed rule codifies the information that must be included in the utility construction application. Among other specified requirements, a water utility will be required to provide information on any action the utility took, such as water conservation or water loss reduction measures, to mitigate the need for new construction.

The proposed rule increases the Commission's review time period from 60 days to 90 days for construction investigations that do not require a hearing to reflect the fact that projects require more time for approval. Finally, the proposed rule ensures coordination between the DNR and the PSC for projects that require an environmental impact statement or environmental analysis, as required by s. 196.025 (2m), Stats.

The proposed rules amend or add a number of water conservation and efficiency provisions in chapter PSC 185, relating to water utility service rules.

DEFINITIONS

The proposed rules include several new definitions for water public utilities. Definitions for utility classes are incorporated, based on the number of customer connections. Class AB utilities have 4,000 or more connections, Class C utilities have between 1,000 and 4,000 connections, and Class D utilities have fewer than 1,000 connections. These are not new definitions; the Commission uses these definitions for annual reporting and rate case processing, but the definitions are not included in a rule. The proposed rules also establish definitions for various customer classes used in water utility tariffs, including residential, commercial, industrial, public authority, non-residential, and irrigation-only customers. Several other commonly-used terms are also defined in the proposed rules.

WATER AUDITS AND WATER LOSS

Excessive water losses negatively affect utility finances because a water utility must purchase electricity and chemicals to produce the water but some of that water is lost before it can be sold to customers. These necessary costs are passed on to all utility customers. Moreover, excessive water loss often indicates a need for capital improvements to replace aging water mains and other infrastructure. Finally, by reducing water losses, a utility can delay the need for additional wells to meet growing demand.

The Commission currently requires water utilities to report annually the amount of water pumped, the amount of water sold, the amount of water lost in the distribution system through leaks and losses, the amount of water used within the system for utility purposes (e.g., hydrant and main flushing), and “unaccounted for" water. The Commission uses this information to benchmark performance and ensure that utilities are operating efficiently. The proposed rule standardizes the method that utilities use to conduct an annual system-wide water audit and specifies how this information is to be reported to the commission.

Current rules require water utilities to report water pumpage, sales, and some losses. However, the rules rely on the term “unaccounted for water" to measure losses from a utility system. This term is vague and its usage in the water utility industry is being phased out in favor of a more robust definition of water loss. Under the new definition, water loss includes any water that is pumped and treated to drinking water standards but that is not sold to utility customers due to leaks, theft, metering errors, and other factors. This rule adopts this new definition, which is consistent with the water audit methodology adopted by the American Water Works Association (AWWA).

Under existing rules, water utilities with excessive system losses or unaccounted for water are required to identify the reasons for the losses and submit a corrective action plan to the Commission. Under the proposed rules, utilities would still be required to identify the reasons for the losses and submit a corrective action plan to the Commission. However, the proposed rule changes the criteria that the Commission would use to determine excessive water loss. Under the proposed rules, Class AB and Class C utilities would be required to submit a correction action plan if their water loss exceeds 15% of the water entering the distribution system and Class D utilities would be required to submit a plan if their water loss exceeds 25%. The proposed rules also allow the Commission to require a water utility to conduct a leak detection survey of their entire distribution system if the utility's water loss exceeds the water loss standard for three consecutive years.

VOLUNTARY WATER CONSERVATION PROGRAMS