A grant for modernization of a dam in the village of Rothschild, the official text

2025 - 2026 LEGISLATURE
LRB-4487/2
ZDW:skw&cdc

2025 SENATE BILL 421
September 11, 2025 - Introduced by Senators Tomczyk and Testin, cosponsored by Representatives Krug, Hurd, B. Jacobson, Snyder and Spiros. Referred to Committee on Insurance, Housing, Rural Issues and Forestry.

An Act to amend 31.385 (2) (d); to create 31.385 (2) (dr) and 31.385 (8) of the statutes; relating to: a grant for modernization of a dam in the village of 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:

Section 1. 31.385 (2) (d) of the statutes is amended to read:
31.385 (2) (d) The financial assistance that is provided under this section shall be paid from the appropriations under ss. 20.370 (4) (ja) and 20.866 (2) (tL) and (tx), except as provided in par. pars. (dm) and (dr) and in 1991 Wisconsin Act 39, section 9142 (10d).
Section 2. 31.385 (2) (dr) of the statutes is created to read:
31.385 (2) (dr) Financial assistance that is provided under sub. (8) shall be paid from the appropriation under s. 20.370 (4) (jq).
Section 3. 31.385 (8) of the statutes is created to read:
31.385 (8) (a) Notwithstanding the limitations under sub. (2) (a) and the funding allocation requirements under sub. (2) (ag) and (ar), the department shall provide financial assistance in the form of a onetime payment of $42,000,000 to Domtar Paper Company, LLC, for modernization of a dam on the Wisconsin River associated with the company’s mill in the village of Rothschild. The department may not require Domtar Paper Company, LLC, to provide documentation of actual expenses prior to making the payment under this paragraph.

(b) If the dam modernization project under this subsection is not commenced by December 31, 2026, Domtar Paper Company, LLC, shall pay to the department, in a manner prescribed by the department, the full amount provided under par. (a).
(c) If Domtar Paper Company, LLC, 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 under this subsection, Domtar Paper Company, LLC, shall pay to the department, in a manner prescribed by the department, any unexpended amount of the assistance provided under par. (a).
(d) If the total amount of financial assistance for the dam modernization project under this subsection that Domtar Paper Company, LLC, receives from all sources exceeds two-thirds of the cost of the project, Domtar Paper Company, LLC, shall pay to the department, in a manner prescribed by the department, an amount that is equal to the difference between two-thirds of the cost of the project and the total amount of financial assistance received by Domtar Paper Company, LLC, for the project.
(e) Domtar Paper Company, LLC, shall agree in writing to invest $100,000,000 in north central Wisconsin via its manufacturing facilities in the village of Rothschild and the city of Nekoosa by the first day of the month beginning 3 years after the effective date of this paragraph. If Domtar Paper Company, LLC, does not make that amount in financial investments in north central Wisconsin by the date specified in this paragraph, Domtar Paper Company, LLC, shall pay to the department, in a manner prescribed by the department, the full amount provided under par. (a).
(f) For the duration of the dam modernization project under this subsection,
Domtar Paper Company, LLC, shall agree to use roundwood and wood chips only from Wisconsin producers to produce products at any facility owned or operated by Domtar Paper Company, LLC, in the village of Rothschild. If Domtar Paper Company, LLC, produces products at any facility owned or operated by Domtar Paper Company, LLC, in the village of Rothschild using roundwood or wood chips from non-Wisconsin producers during the duration of the dam modernization project under this subsection, Domtar Paper Company, LLC, shall pay to the department, in a manner prescribed by the department, the full amount provided under par. (a). This paragraph does not apply if extenuating circumstances prevent Domtar Paper Company, LLC, from using roundwood and wood chips only from Wisconsin producers.
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