The process for issuance of prospecting and mining permits for certain iron mining, standards for activities related to iron mining, fees related to iron mining, the net proceeds occupation tax on iron mining, and making appropriations

The deadlines may also be extended by DNR if the U.S. Army Corps of Engineers notifies DNR that an extension is necessary to allow DNR and the U.S. Army Corps of Engineers to jointly prepare the EISs for the proposed nonsulfide iron mine.

The bill requires the administrator of the division to appoint a hearing examiner to conduct the informational meeting and the public hearing on the application for a mining permit for proposed nonsulfide iron mining and to appoint the same hearing examiner to resolve any disagreements over extensions of deadlines for DNR actions. The bill requires the hearing examiner to conduct a conference with the parties before the hearing on the permit application, to determine which issues will be considered at the hearing, and to establish a schedule that will allow DNR to act on the mining permit application by the deadline specified under the bill.

Other changes to the laws regulating iron mining Current law requires a person who proposes to conduct metallic mining to pay fees to DNR that equal the costs that DNR incurs in connection with the proposed mining.

Under this bill, the fees that must be paid to DNR by a person who proposes to conduct nonsulfide iron mining may not exceed $2,000,000, except that, as under current law, the person is also required to pay the full costs of the preparation of the EIS for the proposed mining.

Current law imposes on generators of solid waste several fees based on the tonnage of solid waste disposed of at solid waste disposal facilities. This kind of fee is often referred to as a tipping fee. The recycling tipping fee is $7 per ton. Under current law there are some exemptions from the recycling tipping fee and the other tipping fees.

The bill exempts iron mining waste from the recycling tipping fee.

Current law (often called the mining moratorium law) prohibits DNR from issuing a mining permit for the mining of a sulfide ore body until DNR makes two determinations, based on information provided by the applicant. A sulfide ore body is a mineral deposit in which metals are mixed with sulfide minerals. The determinations are that a mining operation in the United States or Canada has operated in a sulfide ore body with an acid generating capacity for at least ten years without polluting groundwater or surface water from acid drainage or the release of heavy metals and that such a mining operation has been closed for at least ten years without polluting groundwater or surface water from acid drainage or the release of heavy metals.

The bill exempts a proposal for a nonsulfide iron mine from the mining moratorium law.

Under current law, a person may not prospect for metallic ore without a prospecting permit from DNR. Prospecting is examining an area to determine the quantity and quality of metallic minerals by means other than drilling, for example, by excavating. Under current law, DNR determines whether it must prepare an EIS for a prospecting permit in the same way that it determines whether it must prepare an EIS for other actions for which an EIS is not specifically required.

The bill specifies that DNR is not required to prepare an EIS for a prospecting permit for nonsulfide iron ore. The bill also provides that DNR is not required to hold a hearing on a prospecting permit for nonsulfide iron ore.

Under the bill, if an iron mining operation is located in an area ceded by the Chippewa to the United States, any wetland mitigation that is authorized or required by DNR must occur within the ceded territory.

Current law requires a person who proposes to construct a high capacity well to obtain approval from DNR. Under the law, if DNR determines that a high capacity well may impair the water supply of a public water utility, DNR may not approve the proposed high capacity well unless it includes conditions that will ensure that the water supply of the public utility will not be impaired.

The bill provides that, if DNR determines that a high capacity well proposed in connection with iron mining may impair a privately owned well, DNR may not approve the proposed high capacity well unless it includes conditions that will ensure that the privately owned well will not be impaired.

Net proceeds occupation tax Under current law, the state imposes a net proceeds occupation tax on the mining of metallic minerals in this state. The tax is based, generally, on a percentage of net income from the sale of ore or minerals after certain mining processes have been applied to the ore or minerals. Under the bill, for the first 60 months in which a person is extracting ferrous metallic minerals in this state, the annual amount of the tax imposed on that person is the greater of the amount of the net proceeds occupation tax computed for that person or an amount equal to $416,667 for each month in which extraction occurs. If the amount of the net proceeds occupation tax computed for that person is less than the minimum amount required under the bill, the person may claim the difference between the net proceeds occupation tax amount and the minimum amount paid as a credit against the tax imposed in subsequent years as long as the person's tax liability is not less than the minimum amount, less any credit the person claims for construction fees, as allowed under current law.

Under current law, in addition to paying the net proceeds occupation tax, a person who intends to apply for a mining permit must make an additional three payments of $50,000 each to the investment and local impact fund. Under the bill, a person who intends to apply for a mining permit must also make an additional three payments of $75,000 each to the investment and local impact fund.

Under current law, the revenue collected from the net proceeds occupation tax is deposited into the investment and local impact fund. The fund is managed by the local impact fund board. The revenue is then, generally, distributed to the counties and municipalities in which metallic minerals are being mined.

Under the bill, 70 percent of the revenue collected from the net proceeds occupation tax on extracting ferrous metallic minerals in this state is deposited into the investment and local impact fund, 10 percent of the revenue is deposited into a mining transportation fund, and 20 percent of the revenue is used for a regional Wisconsin diversification program that the bill requires the Wisconsin Economic Development Corporation (WEDC) to establish. Under the bill, the local impact fund board disburses moneys from the mining transportation fund for highway, rail, or shipping infrastructure relating to mining for ferrous metallic minerals. The bill authorizes WEDC to use the moneys it receives for the regional Wisconsin diversification program for the purpose of making business diversification grants or loans in coordination with appropriate units of local government to businesses that are located in close proximity to, but no more than 100 miles from, the site of a mine for ferrous metallic minerals. The bill also authorizes WEDC to use those moneys for the purpose of catastrophe abatement or response, as determined by WEDC.