Wisconsin DNR Secretary Cathy Stepp says less oversight will speed Foxconn review

State Department of Natural Resources Secretary Cathy Stepp said Wednesday her agency supports removing regulatory hurdles for Foxconn Technology Group's massive electronics plant, but she said environmental standards won't be compromised.

Stepp also said she has hired a project manager — a former DNR attorney who is an expert on water use and the Great Lakes — to oversee regulatory responsibilities for the $10 billion project.

Eric Ebersberger has been tapped to lead the Foxconn project. Ebersberger is a former administrator who led the agency's review of the City of Waukesha's application to tap Lake Michigan as a source of drinking water.

His appointment underscores the agency's intent to closely coordinate environmental reviews and oversee water consumption issues. The Foxconn plant is expected to require massive amounts of water during the fabrication process.

Stepp was enthusiastic about Foxconn during a meeting of the Natural Resources Board in Milwaukee, calling the plant pegged for southeastern Wisconsin an "amazing opportunity." The plant would build liquid crystal display panels. The company plans to employ a minimum of 3,000 workers and could have a workforce of up to 13,000.

"We want to hit the ground running and make sure that the regulatory processes and bureaucracy are not in the way of job creation in Wisconsin," Stepp said.

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Environmentalists and some lawmakers are raising concerns about a legislative package put forward by Republican Gov. Scott Walker that cuts out some state regulatory oversight. 

Stepp emphasized the company would still be required to comply with numerous permits to protect air and water resources and would have to follow all federal regulations.

Walker appointed Stepp to the post in 2011 with a mandate to instill a more business-friendly approach at the agency.

In recent months, there has been speculation she will leave the DNR for a post at the U.S. Environmental Protection Agency. 

In an interview, she acknowledged that she discussed jobs with the Trump administration after the election.

"Yes ... but a very basic conversation," Stepp said.

Would she accept an offer?

"Depends on what the job would be," Stepp said. "Certainly, if it's a way to bring some of the reforms that we have done in Wisconsin to the national scene, it would be a great opportunity. But I am not holding my breath."

Walker's legislative package calls for exempting the Taiwan-based company from an environmental impact statement for the plant, which would require a land parcel covering 1.5 square miles.

A site has not been identified, but representatives of the company have been contacting property owners in Racine and Kenosha counties about their land.

The package would also exempt the company from state wetlands permits. The company also would be allowed to do construction activity in state waters and dredge artificial waters that connect to public waterways. 

Stepp downplayed the importance of an environmental impact statement — a rigorous tool to learn of potential pollution impacts before a project is built. The documents also allow for the public to comment on the analysis.

She said the DNR will receive much of the information when Foxconn applies for air and water permits. 

Stepp said even though the company would be exempted from state wetlands review, the project's impact would still need to be reviewed by the Army Corps of Engineers, a federal agency. 

The Foxconn legislation calls for the creation of more wetlands than occurs today when wetlands are destroyed because of a project.  

Any potential loss of wetlands would be mitigated at a ratio of 2 acres for every 1 acre lost. Under current law, the ratio is 1.2 acres for every 1 acre lost. 

Stepp said it was premature to say whether Foxconn would be required to create new wetlands in Racine or Kenosha counties — areas hit by heavy flooding this summer — or somewhere else in the state.   

Erin O'Brien, policy director of the Wisconsin Wetlands Association, said a weaker review is not necessary and that the company could build the plant under current wetlands protection laws.

Said Stepp:

"The scrutiny is the same. It’s just that the process is going to be shortened so that we can get these jobs going, on the ground, and still have environmental protections, and I would say enhancements.”

Also, Stepp said: 

• The question on whether other companies should be exempt from wetlands regulations and environmental impact statements is a policy issue for the Legislature — not the DNR. 
• The DNR has adequate staff to take on the Foxconn project, despite continuous loss of staff dating back to the administration of Democratic Gov. Jim Doyle. 
• The company is not expected to require approval from other Great Lakes states to use water from Lake Michigan.