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AB416: Bill Text
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2025 - 2026 LEGISLATURE
LRB-2417/3
ZDW:skw&cdc
2025 ASSEMBLY BILL 416
September 15, 2025 - Introduced by Representatives
Krug
,
Hurd
,
B. Jacobson
,
Snyder
and
Spiros
, cosponsored by Senators
Tomczyk
and
Testin
. Referred to Committee on Forestry, Parks and Outdoor Recreation.
AB416,1,3
1
An Act
to amend
31.385 (2) (d);
to create
31.385 (2) (dr) and 31.385 (8) of the
2
statutes;
relating to:
a grant for modernization of a dam in the village of
3
Rothschild.
Analysis by the Legislative Reference Bureau
Under
2025 Act 15
, the biennial budget bill, the Joint Committee on Finance was appropriated $42,000,000 to supplement an appropriation to the Department of Natural Resources for providing financial assistance for the modernization of a dam on the Wisconsin River in the village of Rothschild.
This bill requires DNR to provide $42,000,000 to Domtar Paper Company, LLC, (Domtar) for modernization of a dam associated with the company’s mill in the village of Rothschild. The bill provides that, if Domtar does not commence the dam modernization project by December 31, 2026, it must return to the state the full amount of the financial assistance Domtar received from the state. The bill also provides that, if Domtar sells either its mill in the village of Rothschild or its mill in the city of Nekoosa prior to the completion of the dam modernization project, Domtar must return to the state any unexpended amount of the financial assistance Domtar received from the state.
The bill also provides that, if the total amount of financial assistance for the dam modernization project that Domtar receives from all sources exceeds two-thirds of the cost of the project, Domtar must return to the state the difference between two-thirds of the cost of the project and the total amount of financial assistance Domtar received for the project.
Finally, the bill also provides that Domtar must agree to invest a total of $100,000,000 in north central Wisconsin via its manufacturing facilities in the village of Rothschild and the city of Nekoosa within three years and to use roundwood and wood chips only from Wisconsin producers to produce products at its facilities in the village of Rothschild. If Domtar fails to comply with either requirement, they must return to the state the full amount of financial assistance Domtar received from the state.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB416,1
1
Section
1
.
31.385 (2) (d) of the statutes is amended to read:
AB416,2,5
2
31.385
(2)
(d) The financial assistance that is provided under this section
3
shall be paid from the appropriations under ss. 20.370 (4) (ja) and 20.866 (2) (tL)
4
and (tx), except as provided in
par.
pars.
(dm)
and (dr)
and in
1991 Wisconsin Act
5
39
, section
9142 (10d)
.
AB416,2
6
Section
2
.
31.385 (2) (dr) of the statutes is created to read:
AB416,2,8
7
31.385
(2)
(dr) Financial assistance that is provided under sub. (8) shall be
8
paid from the appropriation under s. 20.370 (4) (jq).
AB416,3
9
Section
3
.
31.385 (8) of the statutes is created to read:
AB416,2,16
10
31.385
(8)
(a) Notwithstanding the limitations under sub. (2) (a) and the
11
funding allocation requirements under sub. (2) (ag) and (ar), the department shall
12
provide financial assistance in the form of a onetime payment of $42,000,000 to
13
Domtar Paper Company, LLC, for modernization of a dam on the Wisconsin River
14
associated with the company’s mill in the village of Rothschild. The department
15
may not require Domtar Paper Company, LLC, to provide documentation of actual
16
expenses prior to making the payment under this paragraph.
AB416,3,3
1
(b) If the dam modernization project under this subsection is not commenced
2
by December 31, 2026, Domtar Paper Company, LLC, shall pay to the department,
3
in a manner prescribed by the department, the full amount provided under par. (a).
AB416,3,8
4
(c) If Domtar Paper Company, LLC, sells either its mill in the village of
5
Rothschild or its mill in the city of Nekoosa prior to the completion of the dam
6
modernization project under this subsection, Domtar Paper Company, LLC, shall
7
pay to the department, in a manner prescribed by the department, any unexpended
8
amount of the assistance provided under par. (a).
AB416,3,15
9
(d) If the total amount of financial assistance for the dam modernization
10
project under this subsection that Domtar Paper Company, LLC, receives from all
11
sources exceeds two-thirds of the cost of the project, Domtar Paper Company, LLC,
12
shall pay to the department, in a manner prescribed by the department, an amount
13
that is equal to the difference between two-thirds of the cost of the project and the
14
total amount of financial assistance received by Domtar Paper Company, LLC, for
15
the project.
AB416,3,23
16
(e) Domtar Paper Company, LLC, shall agree in writing to invest
17
$100,000,000 in north central Wisconsin via its manufacturing facilities in the
18
village of Rothschild and the city of Nekoosa by the first day of the month beginning
19
3 years after the effective date of this paragraph. If Domtar Paper Company, LLC,
20
does not make that amount in financial investments in north central Wisconsin by
21
the date specified in this paragraph, Domtar Paper Company, LLC, shall pay to the
22
department, in a manner prescribed by the department, the full amount provided
23
under par. (a).
AB416,4,11
24
(f) For the duration of the dam modernization project under this subsection,
1
Domtar Paper Company, LLC, shall agree to use roundwood and wood chips only
2
from Wisconsin producers to produce products at any facility owned or operated by
3
Domtar Paper Company, LLC, in the village of Rothschild. If Domtar Paper
4
Company, LLC, produces products at any facility owned or operated by Domtar
5
Paper Company, LLC, in the village of Rothschild using roundwood or wood chips
6
from non-Wisconsin producers during the duration of the dam modernization
7
project under this subsection, Domtar Paper Company, LLC, shall pay to the
8
department, in a manner prescribed by the department, the full amount provided
9
under par. (a). This paragraph does not apply if extenuating circumstances prevent
10
Domtar Paper Company, LLC, from using roundwood and wood chips only from
11
Wisconsin producers.
AB416,4,12
12
(end)
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