INDIANA: Indiana has a well construction code and requires a water well driller license. Geothermal heat pump wells are addressed very briefly in the well drilling code. No license is required for heat pump well drilling.
IOWA: Iowa is in the process of developing rules, but has no rules codified for heat exchange drilling at this time. Iowa has a well drilling code and a well driller certification. Fee is $400 initially and $300 for renewal. License is for a two-year period and requires 16 contact hours of continuing education.
MICHIGAN: Michigan has no codified rules at this time, but has guidelines for heat exchange systems. Michigan has a Water Well Drilling Contractor license, but no requirements for heat exchange drillers. Water well driller license fee is $40.
MINNESOTA: In Minnesota, the Commissioner of Health is responsible for oversight of the well construction code. The code includes regulations for groundwater thermal exchange devices. Minnesota has a license for a certified well contractor and a separate license for constructing vertical heat exchangers. Fees for well contractor licenses range from $75 to $250. Fees are required for construction of vertical heat exchangers, ranging from $235 to $700.
OHIO: Ohio has requirements for well construction, but no requirements for heat exchange drillholes at this time. Ohio has a well driller registration process and a $250 annual fee.
Summary of factual data and analytical methodologies
Instances of drinking water and groundwater contamination have occurred in Wisconsin as a result of improper heat exchange drilling. 2011 Wisconsin Act 150 was prompted by concerns in the drilling industry that current regulation and licensing did not adequately cover the installation of heat-exchange drillholes and that inexperienced or even unqualified drillers were doing installations in Wisconsin. The Wisconsin Water Well Association took the lead in working with the legislature, other industry representatives, and the department, to promote passage of Wisconsin Act 150.
Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis
The current water well drilling license is $50.00 per year for an individual drilling license and/or $50.00 for the drilling firm business license. The cost is anticipated to be the same to add certification for heat exchange drilling, so a licensed driller with both certifications would pay a total of $100. Administration of the driller license exam is currently done at no cost to the driller. No complaints of economic hardship or business impacts have been received during the collection of existing license fees. Neither the Wisconsin Water Well Association, representing many affected drillers, or individual drillers participating in the advisory committee to rule development, have expressed any concern about the impact of proposed fees.
Effect on Small Business
Economic impacts of this rule will be minimal. Actual costs to drillers are small and unlikely to affect decisions to offer a service or enter a business sector.
As a result, actual costs to consumers to use geothermal energy are unlikely to be affected by the licensing and construction requirements.
Overall economic impacts are uncertain. Additional protection of groundwater through better drilling practices may reduce future costs of drinking water treatment or groundwater clean-up.
Environmental Analysis
The Department has made a preliminary determination that adoption of the proposed rules would not involve significant adverse environmental effects and would not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on comments received, an environmental analysis may be prepared before proceeding. This analysis would summarize the Department's consideration of the impacts of the proposal and any reasonable alternatives.
Fiscal Estimate Summary
Economic and fiscal impacts of this rule are anticipated to be minimal (final determination of impact will follow public comment period). Actual costs to well drillers are small and not expected to affect decisions to offer a service or enter a business sector. The current water well drilling license fee is $50 and the heat exchange drilling license fee is expected to be set at the same level (total compliance cost to industry is estimated at $500). Drillers may take the licensing exam and apply to construct heat exchange drillholes at no cost. The rule does not propose fees for either of these state services as the total cost to the state is small (total implementation cost is estimated at $7300).
Agency Contact
Randell Clark
Bureau of Drinking Water and Groundwater
P.O. Box 7921
Madison, WI 53707-7921
Phone: (608) 267-7895.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
1. Type of Estimate and Analysis
X Original   Updated   Corrected
2. Administrative Rule Chapter, Title and Number
Chapters NR812 and NR146, Wisconsin Administrative Code
3. Subject
Heat Exchange drilling licensing and construction standards
4. Fund Sources Affected
5. Chapter 20, Stats. Appropriations Affected
X GPR   FED   PRO   PRS   SEG   SEG-S
20.370(4)(ma)
6. Fiscal Effect of Implementing the Rule
No Fiscal Effect
Indeterminate
X Increase Existing Revenues
Decrease Existing Revenues
Increase Costs
X Could Absorb Within Agency's Budget
Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
State's Economy
Local Government Units
X Specific Businesses/Sectors
Public Utility Rate Payers
Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes   X No
9. Policy Problem Addressed by the Rule
Potential for drinking water or groundwater contamination as a result of inexperienced or unqualified drillers constructing heat exchange drillholes
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Well drilling businesses are anticipated to be the primary affected business sector. Many drillers are represented by the Wisconsin Water Well Association whose representatives participate in the advisory work group. Local governments may be positively impacted by reduced risk of drinking water or groundwater contamination.
11. Identify the local governmental units that participated in the development of this EIA.
The Madison Water Utility provided comments as part of the advisory work group for rule development.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
Economic and fiscal impacts of this rule are anticipated to be minimal (final determination of impact will follow public comment period). Actual costs to well drillers are small and not expected to affect decisions to offer a service or enter a business sector. The current water well drilling license fee is $50 and the heat exchange drilling license fee is expected to be set at the same level (total compliance cost to industry is estimated at $500). Drillers may take the licensing exam and apply to construct heat exchange drillholes at no cost. The rule does not propose fees for either of these state services as the total cost to the state is small (total implementation cost is estimated at $7300).
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Benefits of implementing the rule include reduced potential for drinking water and groundwater contamination as a result of improper construction of heat exchange drillholes. No alternatives to implementing the rule are apparent as the statute prohibits heat exchange drilling without a license as of April 1, 2015.
14. Long Range Implications of Implementing the Rule
Long range implications include reduced potential for drinking water and groundwater contamination as drillers are licensed and receive continuing education annually on advances in heat exchange drilling. While the overall economic impact is uncertain, the rules are anticipated to result in less potential for impact on drilling costs, property values or water supply costs.
15. Compare With Approaches Being Used by Federal Government
No approaches are currently being used by the federal government.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
ILLINOIS: In Illinois, the Department of Public Health is responsible for oversight of the well construction code, and has authority over the location, construction and modification of closed loop wells. A small set of standards specifically covers construction of closed-loop wells. The Department of Public Health's Closed Loop Well Contractors Certification Board oversees the rules, licensing and administration. A closed loop certification is required for drillers and is issued to those who are qualified and have passed the exam. The initial examination fee is $50 and annual renewal fee is $25. Licensees must attend one continuing education session in the preceding 2 years for license renewal.
IOWA: Iowa is in the process of developing rules, but has no rules codified for heat exchange drilling at this time. Iowa has a well drilling code and a well driller certification. Fee is $400 initially and $300 for renewal. License is for a two-year period and requires 16 contact hours of continuing education.
MICHIGAN: Michigan has no codified rules at this time, but has guidelines for heat exchange systems. Michigan has a Water Well Drilling Contractor license, but no requirements for heat exchange drillers. Water well driller license fee is $40.
MINNESOTA: In Minnesota, the Commissioner of Health is responsible for oversight of the well construction code. The code includes regulations for groundwater thermal exchange devices. Minnesota has a license for a certified well contractor and a separate license for constructing vertical heat exchangers. Fees for well contractor licenses range from $75 to $250. Fees are required for construction of vertical heat exchangers, ranging from $235 to $700.
17. Contact Name
18. Contact Phone Number
Randell Clark
608-267-7895
This document can be made available in alternate formats to individuals with disabilities upon request.
Notice of Hearings
Natural Resources
Environmental Protection — General, Chs. NR 100
Environmental Protection — Water Supply,
Chs. NR 800
(DNR # DG-03-13 )
NOTICE IS HEREBY GIVEN THAT pursuant to sections 227.16 and 227.17, Stats., the Department of Natural Resources, hereinafter the Department, will hold public hearings on proposed revisions to chapters NR 146 and NR 812, relating to licensing for well filling and sealing contractors, well inspectors, and water well drilling rig operators; to inspection of water systems at time of real estate transfer; and to citations for violations related to well drilling and pump installation to protect public health and groundwater, on the dates and at the time and locations listed below.
Hearings will be held jointly with hearings on DG-02-13, relating to heat exchange drilling.
Hearing Information
Date:   Monday, December 16, 2013
Time:  
4:00 p.m.
Locations:
  (Attendees may select any location listed
  below on December 16)
  Madison:
  UW-Pyle Center, Room 227
  702 Langdon Street
  Madison, WI 53706
  La Crosse:
  UW-La Crosse
  Room 102 Wing Technology
  1725 State Street
  La Crosse, WI 54601
  Wausau:
  UWC-Wausau, Room 144
  near the MAIN ENTRANCE
  518 7th Avenue
  Wausau, WI 54401
  Milwaukee:
  UW-Milwaukee, Room 264 Enderis Hall
  2400 East Hartford Avenue
  Milwaukee, WI 53201
Date:   Tuesday, December 17, 2013
Time:  
4:00 p.m.
Locations:
  (Attendees may select any location listed
  below on December 17)
  Madison:
  UW-Pyle Center, Room 227
  702 Langdon Street
  Madison, WI 53706
  Eau Claire:
  UW-Eau Claire Old Library, Room 1128
  105 Garfield Avenue
  Eau Claire, WI 54702
  Green Bay:
  UW-Green Bay Instructional Services
  Room 1034
  2420 Nicolet Drive
  Green Bay, WI 54311
  Ashland:
  Wisconsin Indianhead Technical College
  Room 7
  2100 Beaser Avenue
  Ashland, WI 54806
Reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Contact Ms. June Everson, Bureau of Drinking Water and Groundwater, P.O. Box 7921, 101 South Webster Street, Madison, WI 53707-7921; by E-mail to june.everson@wisconsin.gov or by calling (608) 266-6669. A request must include specific information and be received at least 10 days before the date of the scheduled hearing.
Availability of the proposed rules and fiscal estimate
The proposed rules and supporting documents, including the fiscal estimates, may be viewed and downloaded from the Administrative Rules System Web site which can be accessed through the link https://health.wisconsin.gov/admrules/public/Home. If you do not have Internet access, a printed copy of the proposed rule and supporting documents, including the fiscal estimate, may be obtained free of charge by contacting Ms. June Everson, Bureau of Drinking Water and Groundwater, P.O. Box 7921, 101 South Webster Street, Madison, WI 53707-7921; by E-mail to june.everson@wisconsin.gov or by calling (608) 266-6669.
Submitting Comments
Comments on the proposed rules must be received on or before 4:30 PM on December 20, 2013. Written comments may be submitted by U.S. mail, fax, E-mail, or through the Internet and will have the same weight and effect as oral statements presented at the public hearing. Written comments and any questions on the proposed rules should be submitted to:
Steve Ales
Wisconsin Department of Natural Resources, DG/5
P.O. Box 7921
Madison, WI 53707-7921
Internet: Use the Administrative Rules System Web site at the link provided above.
Analysis Prepared by the Department of Natural Resources
Statutes interpreted
Sections 227.11 and 280.11 (1), Wis. Stats.
Statutory authority
Sections 280.11 (1), 280.15 (3g), 280.30, 280.98, 281.11, 281.12, and 281.19, Wis. Stats.
Explanation of agency authority
Section 280.11 (1), Wis. Stats., grants authority to the department to, among other things, establishment of all safeguards necessary in protecting public health against the hazards of polluted or impure water supplies. Specifically, s. 280.15 (3g), Wis. Stats., requires compliance with licensing, training and education requirements promulgated by the department by rule for water well drilling rig operators. Section 280.30, Wis. Stats., requires licenses or registrations for persons performing property transfer well inspections or water well filling and sealing. Section 280.98, Wis. Stats, requires the department to promulgate rules for issuance of citations for specific licensing or well and pump code violations. Section 281.11, Wis. Stats., authorizes the department to serve as the central unit of government to protect maintain, and improve the quality and management of the waters of the state, ground and surface, public and private.
Section 281.12, Wis. Stats., provides that the department shall have general supervision and control over waters of the state. Section 281.19, Wis. Stats., grants authority to the department to adopt rules applicable throughout the state for the construction, installation, use and operation of practicable and available methods for preventing and abating pollution of the waters of the state.
Related statutes or rules
Chapter 280, Wis. Stats. — Pure Drinking Water, provides definitions for terms, defines the powers of the department, and lays out well drilling registration, licensing and qualification requirements and fees for such. It also defines certain prohibitions and exceptions, local authority and defines penalties and citations.
Chapter 281, Wis. Stats. — Water and Sewage, designates the department as the central unit of government to protect, maintain, and improve the quality and management of the waters of the state, ground and surface, public and private, provides that the department shall have general supervision and control over waters of the state, and grants authority to the department to adopt rules applicable throughout the state for the construction, installation, use, and operation of practicable and available methods for preventing and abating pollution of the waters of the state.
Chapter NR 146, Wis. Adm. Code — Well Driller and Pump Installer Registration, provides definitions, registration requirements, defines the requirements for the initial application and registration conditions. It also defines requirements for out-of-state drillers, renewals and the registrant responsibilities, as well as license suspension and revocation criteria.
Chapter NR 812, Wis. Adm. Code — Well Construction and Pump Installation, provides purpose, applicability, cooperation with the department, contracts for noncomplying installations, disposal of pollutants and injection prohibition, drinking water standards, definitions and location criteria, well filling and sealing requirements, requirements of new pump installations and water treatment, standards for existing installations, and variance conditions.
Plain language analysis
The proposed rules amend chs. NR 146 and NR 812, Wis. Adm. Code, to create specific requirements for property transfer well inspections to help protect sources of drinking water as well the health of consumers. The proposed rules do not require inspections of wells at time of property transfer, but sets uniform minimum standards if an inspection is performed. The proposed rule changes will reduce the amount of time staff currently spend answering questions and writing variances because several requirements for existing wells have been simplified and/or eliminated. Inspection forms and laboratory reports will not be submitted to the department.
The proposed rules make other changes in chs. NR 146 and 812 to conform the provisions of the rules to existing statutes. Specifically, the rule order includes provisions in ch. NR 146 for:
1.   The qualifications and training for a registered water well drilling rig operator to become a licensed water well driller.
2.   The requirements for department issuance of citations related to water well drilling and pump installing.
3.   The qualifications for performing property transfer well inspections and well filling and sealing.
The proposed order includes provisions in ch. NR 812 for
1.   Procedures and requirements property transfer well inspections.
2.   Well filling and sealing procedures.
3.   Eliminating some separation distance requirements that are no longer considered a health hazard for wells.
4.   Citation procedures
Summary and comparison with existing and proposed federal regulations
No federal regulations currently apply to private water supply wells with regard to licensing, well inspections, well filling and sealing or citations for code violations.
Comparison of similar rules in adjacent states
ILLINOIS: In Illinois, the Department of Public Health is responsible for oversight of the well construction code, and has authority over the location, construction and modification of closed loop wells. The Department of Public Health's Closed Loop Well Contractors Certification Board oversees the rules, licensing and administration.
INDIANA: Indiana has a well construction code and requires a water well driller license.
IOWA: Iowa has a well drilling code and a well driller certification. Fee is $400 initially and $300 for renewal. License is for a two-year period and requires 16 contact hours of continuing education.
MICHIGAN: Michigan has no codified rules at this time, but has guidelines for heat exchange systems. Michigan has a Water Well Drilling Contractor license. Water well driller license fee is $40.
MINNESOTA: Minnesota Department Health requires that the status of all wells on a property be disclosed at time of property transfer for the purpose of getting unused and noncomplying wells filled and sealed. There is no requirement to inspect the well or disclose their compliance with the well code at time of property transfer. Minnesota does not have citation authority for license or well or pump code violations, but can issue administrative orders with financial penalties for noncompliance. Minnesota does not require water well drilling rig operators to be registered. Minnesota requires that filling and sealing of wells be performed by a licensed contractor.
OHIO: Ohio has requirements for well construction. Ohio has a well driller registration process and a $250 annual fee.
Summary of factual data and analytical methodologies
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Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.