HF 2109

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/24/2014 03:28pm

A bill for an act
relating to water; modifying water use permit provisions; creating pilot program
to encourage water conservation; appropriating money; amending Minnesota
Statutes 2012, section 103G.271, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to
read:

Subd. 6.

Water use permit processing fee.

(a) Except as described in paragraphs
(b) to deleted text begin (f) deleted text end new text begin (g) new text end , a water use permit processing fee must be prescribed by the commissioner in
accordance with the schedule of fees in this subdivision for each water use permit in force
at any time during the year. Fees collected under this paragraph are credited to the water
management account in the natural resources fund. The schedule is as follows, with the
stated fee in each clause applied to the total amount appropriated:

(1) $140 for amounts not exceeding 50,000,000 gallons per year;

(2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
than 100,000,000 gallons per year;

(3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
than 150,000,000 gallons per year;

(4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
less than 200,000,000 gallons per year;

(5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
than 250,000,000 gallons per year;

(6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
less than 300,000,000 gallons per year;

(7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
than 350,000,000 gallons per year;

(8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
less than 400,000,000 gallons per year;

(9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
than 450,000,000 gallons per year;

(10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
less than 500,000,000 gallons per year; and

(11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.

(b) For once-through cooling systems, a water use processing fee must be prescribed
by the commissioner in accordance with the following schedule of fees for each water use
permit in force at any time during the year:

(1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and

(2) for all other users, $420 per 1,000,000 gallons.

(c) The fee is payable based on the amount of water appropriated during the year
and, except as provided in paragraph (f), the minimum fee is $100.

(d) For water use processing fees other than once-through cooling systems:

(1) the fee for a city of the first class may not exceed $250,000 per year;

(2) the fee for other entities for any permitted use may not exceed:

(i) $60,000 per year for an entity holding three or fewer permits;

(ii) $90,000 per year for an entity holding four or five permits; or

(iii) $300,000 per year for an entity holding more than five permits;

(3) the fee for agricultural irrigation may not exceed $750 per year;

(4) the fee for a municipality that furnishes electric service and cogenerates steam
for home heating may not exceed $10,000 for its permit for water use related to the
cogeneration of electricity and steam; and

(5) no fee is required for a project involving the appropriation of surface water to
prevent flood damage or to remove flood waters during a period of flooding, as determined
by the commissioner.

(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of
new text begin $150 per month or new text end two percent per month new text begin , whichever is greater, new text end calculated from the
original due date must be imposed on the unpaid balance of fees remaining 30 days after
the sending of a second notice of fees due. A fee may not be imposed on an agency,
as defined in section 16B.01, subdivision 2, or federal governmental agency holding a
water appropriation permit.

(f) The minimum water use processing fee for a permit issued for irrigation of
agricultural land is $20 for years in which:

(1) there is no appropriation of water under the permit; or

(2) the permit is suspended for more than seven consecutive days between May 1
and October 1.

new text begin (g) The commissioner shall waive the water use permit processing fee for installations
that use stormwater runoff from impervious services unless the commissioner determines
that the proposed use adversely affects surface water or groundwater to a significant extent.
new text end

deleted text begin (g) deleted text end new text begin (h) new text end A surcharge of $30 per million gallons in addition to the fee prescribed in
paragraph (a) shall be applied to the volume of water used in each of the months of June,
July, and August that exceeds the volume of water used in January for municipal water
use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
with more than one permit shall be determined based on the total appropriations from all
permits that supply a common distribution system.

Sec. 2. new text begin NORTH AND EAST METRO GROUNDWATER MANAGEMENT
AREA PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Alternative water use fees. new text end

new text begin Notwithstanding Minnesota Statutes,
section 103G.271, subdivision 6, the commissioner of natural resources, in consultation
with public water suppliers and other permitted water users within the north and east
metro groundwater management area, may establish alternative water use permit fees that
encourage water conservation in the area. Alternative water use fees may include:
new text end

new text begin (1) discounted rates for public water suppliers that demonstrate lower per capita
domestic water use;
new text end

new text begin (2) discounted rates for permitted users that demonstrate the use of conservation
measures that have lowered water use; and
new text end

new text begin (3) credits for permitted users that have utilized methods to reuse or allow others to
reuse water that replaces the use of groundwater.
new text end

new text begin The commissioner shall ensure that alternative water use fees implemented under this
section do not raise significantly more or less revenue than the fees that would otherwise
be collected under Minnesota Statutes, section 103G.271, subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Surcharge. new text end

new text begin Upon the request of the North and East Metro Groundwater
Management Area Project Advisory Team, the commissioner of natural resources may
establish a surcharge not to exceed $....... per 1,000,000 gallons to be added to water use
fees collected under Minnesota Statutes, section 103G.271, subdivision 6, or alternative
water use fees under subdivision 1. The surcharge may be structured similar to conservation
rates to promote conservation. Revenues raised by a surcharge established under this
subdivision shall be deposited in the water management account in the natural resources
fund and are appropriated to the Public Facilities Authority for purposes of subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin The Public Facilities Authority, in consultation with the
commissioner of natural resources, may award grants to governmental units for projects
within the north and east metro groundwater management area that will reduce the use of
groundwater in the area, including transitioning water use from groundwater to surface
and aquifer augmentation. Grants awarded under this subdivision may supplement grants
or loans awarded under Minnesota Statutes, chapter 446A.
new text end

new text begin Subd. 4. new text end

new text begin Revenue bonds. new text end

new text begin For the purposes of making grants under subdivision
3, the Public Facilities Authority may sell and issue revenue bonds payable from the
surcharge imposed under subdivision 2. The commissioner of natural resources and the
authority must enter into an agreement for transfer of surcharge revenues to a debt service
reserve fund established by the authority for repayment of the bonds. The revenue bonds
must be sold and issued following the procedures in Minnesota Statutes, chapter 446A.
The principal amount of bonds issued and outstanding under this subdivision may not
exceed $......., excluding bonds for which refunding bonds or crossover refunding bonds
have been issued. The authority to issue revenue bonds in this subdivision is in addition to
the authority in Minnesota Statutes, section 446A.12, subdivision 1.
new text end