Aid_Content Page_Intermunicipal agreements for the CWFP

Intermunicipal agreements for the CWFP

Section NR 162.05(4)(h) of the Wisconsin Administrative Code provides that an intermunicipal agreement is necessary for each municipality served by the project when two or more municipalities will utilize shared or interconnected wastewater treatment works or a best management practice (BMP).

The intermunicipal agreement requirement:

  • Does not apply to a metropolitan sewerage district (MSD) in which all municipalities being served have been annexed into the sewerage district or to a situation in which the intermunicipal exception established under s. NR 162.05(5), Wis. Adm. Code, has been met.

The final executed intermunicipal agreement must:

Prior to receiving financial assistance, the applicant shall ensure that each required intermunicipal agreement does all of the following that are applicable to the project:

  1. Identify ownership for each individual portion of the wastewater treatment works, including wastewater treatment plants, interceptors, sewage collection systems, lift stations, biosolids facilities, and privately-owned treatment works.
  2. Establish the term of the intermunicipal agreement unless it is effective in perpetuity. If the intermunicipal agreement is new or being negotiated specifically for the project for which financial assistance is being requested, the term shall be for at least the term of the loan. If there is an existing intermunicipal agreement in place that meets the requirements of this paragraph but expires during the term of the loan, the municipality shall renegotiate or extend the existing agreement prior to the end of its term and maintain the intermunicipal agreement throughout the term of the loan.
  3. Demonstrate the basis for generating revenue for operation, maintenance, and replacement costs based on actual use or another equitable method and state the parties that are responsible for paying these charges.
  4. Indicate the method for generating revenue for capital costs and indicate who is responsible for payment.
  5. Indicate that the owner of the regional facility shall accept the applicant's wastewater and identify the boundary from which the applicant's discharge originates.

Code revision

All applications submitted November 1, 2023, and later must follow the current Wisconsin Administrative Code. Applications submitted prior to November 1, 2023, must follow the former Wisconsin Administrative Code. Links to both the current and former versions of the codes are available on the DNR Environmental Loans’ Statutes and Administrative Codes page.

Term of Agreement

One of the main differences between the two versions of the code is that the current code allows flexibility for the term of the agreement when there is an existing agreement in place. Previously, the term of the agreement had to always be for the life of the loan; this resulted in agreements needing to be extended or renegotiated prior to loan closing. With the new code, if the agreement expires during the loan term, the municipality shall renegotiate or extend the agreement prior to the expiration of the agreement and maintain the intermunicipal agreement throughout the term of the loan; however, this extension doesn’t have to be done prior to loan closing.

Read more about the specific requirements for intermunicipal agreements.

Contact information
For information on this topic, contact:
Lisa Bushby, CWFP Coordinator