SF 2934

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 05/16/2018 08:55am

A bill for an act
relating to natural resources; appropriating money from environment and natural
resources trust fund; correcting previous appropriations; modifying requirements
for receipt of fund money; authorizing the issuance of appropriation bonds for
certain wastewater treatment projects; modifying wastewater treatment grant
funding provisions; amending Minnesota Statutes 2016, sections 116P.08,
subdivision 2; 116P.12, subdivision 1; Minnesota Statutes 2017 Supplement,
sections 116P.08, subdivision 1; 446A.073, by adding a subdivision; Laws 2015,
chapter 76, section 2, subdivision 9; Laws 2017, chapter 96, section 2, subdivision
8; proposing coding for new law in Minnesota Statutes, chapters 16A; 446A.

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

ARTICLE 1

ENVIRONMENT AND NATURAL RESOURCES TRUST FUND APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this act. The appropriations are from the environment and
natural resources trust fund, or another named fund, and are available for the fiscal years
indicated for each purpose. The figures "2018" and "2019" used in this act mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2018, or
June 30, 2019, respectively. "The first year" is fiscal year 2018. "The second year" is fiscal
year 2019. "The biennium" is fiscal years 2018 and 2019.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2018 new text end		new text begin 2019 new text end

Sec. 2. new text begin MINNESOTA RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 89,000 new text end

new text begin $ new text end

new text begin 44,329,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions. Appropriations are available for
two years beginning July 1, 2018, unless
otherwise stated in the appropriation. Any
unencumbered balance remaining in the first
year does not cancel and is available for the
second year or until the end of the
appropriation.
new text end

new text begin Subd. 2. new text end new text begin Definition new text end

new text begin "Trust fund" means the Minnesota
environment and natural resources trust fund
established under the Minnesota Constitution,
article XI, section 14.
new text end

new text begin Subd. 3. new text end new text begin Foundational Natural Resource Data and Information new text end

new text begin -0- new text end

new text begin 4,233,000 new text end

new text begin (a) County Geologic Atlases - Part A new text end

new text begin $1,240,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota, Minnesota Geological Survey,
to continue producing county geologic atlases
for the purpose of informed management of
surface water and groundwater resources. This
appropriation is to complete part A, which
focuses on the properties and distribution of
earth materials to define aquifer boundaries
and the connection of aquifers to the land
surface and surface water resources. This
appropriation is available until June 30, 2022,
by which time the project must be completed
and final products delivered.
new text end

new text begin (b) Providing Critical Water-Quality Information for Lake Management new text end

new text begin $250,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop a semiautomated
system to acquire, process, and deliver new
satellite-derived water-quality data in near real
time on water clarity, algae, and turbidity for
Minnesota lakes. This appropriation is
available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (c) Minnesota Biodiversity Atlas - Phase 2 new text end

new text begin $350,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to expand the biodiversity atlas
project by adding more than 800,000 records
and images of Minnesota wildlife, plants, and
fungi, including observations from state
agencies and other museum collections, to
enhance research, guide field surveys, and
inform conservation planning. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (d) Peatland Forest Management new text end

new text begin $600,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to identify management actions
to maximize benefits to wildlife, water quality,
timber production, and native plant
communities in peatland forests. This
appropriation is available until June 30, 2022,
by which time the project must be completed
and final products delivered.
new text end

new text begin (e) Assessing Natural Resource Benefits Provided by Lichens and Mosses new text end

new text begin $213,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to survey, map, and analyze
mosses and lichens across the state, including
their moisture-retention capacity, effects on
hydrology, and ability to filter airborne
pollutants. This appropriation is available until
June 30, 2021, by which time the project must
be completed and final products delivered.
new text end

new text begin (f) Develop a System to Assess Wildlife Health Threats in Minnesota new text end

new text begin $280,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop a statewide
information-management system that uses
wildlife-rehabilitation data to identify
emerging threats to wildlife health in
Minnesota.
new text end

new text begin (g) Conserving Minnesota's Forest Birds of Management Concern new text end

new text begin $500,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota for the Natural Resources
Research Institute in Duluth to identify
forest-management actions and guidelines to
conserve birds in Minnesota's forests. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (h) Mapping Avian Movement in Minnesota new text end

new text begin $200,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota for the Natural Resources
Research Institute in Duluth to pilot the
establishment of a network of automated
radio-telemetry stations to monitor bird
migration and local movements and to develop
strategic plans for using the infrastructure long
term to monitor animal movement for
conservation. This appropriation is available
until June 30, 2021, by which time the project
must be completed and final products
delivered.
new text end

new text begin (i) Improve Trout-Stream Management by Understanding Variable Winter Thermal Conditions new text end

new text begin $400,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to identify how winter
groundwater flows, air temperature, and
streambed conditions affect insect productivity
in order to guide restoration and management
efforts in southeastern Minnesota trout
streams. This appropriation is available until
June 30, 2021, by which time the project must
be completed and final products delivered.
new text end

new text begin (j) Develop Sonar Data Mapping on Three Rivers to Assess Suitability for Native Mussel Habitat new text end

new text begin $200,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the National Park
Service to create high-resolution sonar data
maps to identify critical native mussel habitat
for the designated Lower St. Croix National
Scenic Riverway and the Mississippi National
River and Recreation Area including part of
the Minnesota River.
new text end

new text begin Subd. 4. new text end new text begin Water Resources new text end

new text begin 89,000 new text end

new text begin 5,786,000 new text end

new text begin (a) Pilot Program to Optimize Local Mechanical and Pond Wastewater-Treatment Plants new text end

new text begin $89,000 the first year and $611,000 the second
year are from the trust fund to the
commissioner of the Minnesota Pollution
Control Agency, in partnership with the
Minnesota Rural Water Association and the
University of Minnesota's Technical
Assistance Program, to implement a pilot
program to optimize existing local mechanical
and pond wastewater-treatment systems to
increase nutrient removal and improve
efficiency without requiring costly upgrades.
new text end

new text begin (b) Assess and Develop Strategies to Remove Microscopic Plastic-Particle Pollution from Minnesota Water Bodies new text end

new text begin $300,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to assess, track, and develop
methods to remove microscopic plastic
particles that are dispersed and accumulating
as pollution in Minnesota water bodies. This
appropriation is subject to Minnesota Statutes,
section 116P.10. This appropriation is
available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (c) Reduce Chlorides in Minnesota Waters by Evaluating Road-Salt Alternatives and Pavement Innovations new text end

new text begin $400,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to investigate road-salt
alternatives and pavement innovations to
reduce lake, stream, and groundwater
degradation caused by road-salt chlorides. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (d) Protect Water Quality with Efficient Removal of Contaminants in Treatment Ponds for Storm Water new text end

new text begin $325,000 the second year is from the trust
fund to the Board of Trustees of the Minnesota
State Colleges and Universities system for St.
Cloud State University to evaluate the
effectiveness of best management practices in
removing contaminants from storm water to
safeguard aquatic habitats. This appropriation
is available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (e) Develop Small and Inexpensive Purification System for Community Drinking Water new text end

new text begin $425,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop a small and
inexpensive purification-technology system
for community drinking-water facilities to
remove toxic contaminants, make water safe
to drink, and improve drinking-water quality.
This appropriation is subject to Minnesota
Statutes, section 116P.10. This appropriation
is available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (f) Evaluate Emerging Pathogens in Lakes, Rivers, and Tap Water to Keep Drinking Water Safe new text end

new text begin $325,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to evaluate emerging pathogens
including Legionella and mycobacteria to
ensure that surface water used for drinking
water and tap water is safe to drink. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (g) Characterize Unregulated Contaminants in Source Water and Drinking Water new text end

new text begin $1,000,000 the second year is from the trust
fund to the commissioner of health to establish
monitoring networks of public water-system
wells and surface-water intakes to determine
if contaminants persist after standard public
water treatment. This appropriation is
available until June 30, 2022, by which time
the project must be completed and final
products delivered.
new text end

new text begin (h) Mapping Antibiotic Resistance in Minnesota to Help Protect Environmental, Animal, and Human Health new text end

new text begin $750,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to quantify and map antibiotic
and antibiotic-resistance gene contamination
in Minnesota waters and soils to identify
locations in need of mitigation to protect
environmental, animal, and human health. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (i) Farmer-Led Expansion of Alfalfa Production to Increase Water Protection new text end

new text begin $500,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop a farmer-led,
market-based working-lands approach to
increase water protection in agricultural areas
by targeted expansion of alfalfa production
and development of methods to convert alfalfa
to high-value bioproducts. This appropriation
is available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (j) Using Perennial Grain Crops in Wellhead Protection Areas to Protect Groundwater new text end

new text begin $250,000 the second year is from the trust
fund to the commissioner of agriculture to
establish demonstration plots of Kernza, a new
intermediate perennial grain crop, to evaluate
the potential to profitably reduce nitrate
contamination of groundwater in vulnerable
wellhead protection regions of Minnesota.
Any income generated as part of this
appropriation may be used to expand the
project.
new text end

new text begin (k) Implement Pilot Credit-Trading System for Storm Water in Shell Rock River Watershed to Improve Water Quality new text end

new text begin $300,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the Shell Rock River
Watershed District to develop and implement
a pilot water-quality credit-trading program
for storm water that provides voluntary and
cost-effective options to reduce pollution on
a watershed scale.
new text end

new text begin (l) Lake Agnes Treatment new text end

new text begin $600,000 the second year is to the Board of
Water and Soil Resources for a grant to the
Alexandria Lake Area Sanitary District for
lake management activities, including, but not
limited to, alum treatment in Lake Agnes, carp
removal in Lake Winona, and related
management and reassessment measures that
are intended to achieve and maintain
compliance with water quality standards for
phosphorus and the total maximum daily load
for Lake Winona.
new text end

new text begin Subd. 5. new text end new text begin Technical Assistance, Outreach, and Environmental Education new text end

new text begin -0- new text end

new text begin 5,168,000 new text end

new text begin (a) Prairie Sportsman Statewide Environmental Broadcasts and Videos new text end

new text begin $300,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with Pioneer Public
Television to provide outreach on outdoor
recreation, conservation, and natural resource
issues, including water quality, wildlife
habitat, and invasive species, through a series
of interrelated educational and training videos
and statewide broadcast television programs.
new text end

new text begin (b) YES! Students Take on Minnesota Water- Quality Challenge new text end

new text begin $213,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with Prairie Woods
Environmental Learning Center to expand the
Youth Energy Summit (YES!) model to
improve local waterways by training and
mobilizing over 20 youth-led teams in
Minnesota communities to complete 30 or
more projects related to water quality
including monitoring and reporting.
new text end

new text begin (c) Get Outdoors After-School Training new text end

new text begin $30,000 the second year is from the trust fund
to the commissioner of natural resources for
an agreement with Project Get Outdoors to
train and equip youth leaders at out-of-school
youth organizations across Minnesota with
knowledge, skills, and resources to incorporate
outdoor nature activities into after-school
programs for at least 6,000 children, including
those from underserved populations.
new text end

new text begin (d) Connecting Students with Water Stewardship through Hands-on Learning new text end

new text begin $400,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with Minnesota Trout
Unlimited to engage students in classroom and
outdoor hands-on learning focused on water
quality, groundwater, aquatic life, and
watershed stewardship and providing youth
and their families with fishing experiences.
This appropriation is available until June 30,
2021, by which time the project must be
completed and final products delivered.
new text end

new text begin (e) Expanding River Watch Program on the Minnesota River With High School Teams new text end

new text begin $100,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with Friends of the
Minnesota Valley to expand a River Watch
program on the Minnesota River to recruit at
least 15 additional teams of high school
students in monthly monitoring and reporting
of water quality.
new text end

new text begin (f) Increase Diversity in Environmental Careers to Serve Minnesota's Changing Demographics new text end

new text begin $750,000 the second year is from the trust
fund to the commissioner of natural resources
in cooperation with Conservation Corps
Minnesota and Iowa to provide a
college-to-work pathway for students of
diversity to pursue natural resources careers
through internships and mentorships with state
agencies. This appropriation is available until
June 30, 2023, by which time the project must
be completed and final products delivered.
new text end

new text begin (g) Pollinator Ambassadors Program for Gardens new text end

new text begin $250,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to increase knowledge of
pollinators in gardens and yards and improve
pollinator habitat by expanding outreach,
training, and tools for Minnesota communities
as part of the Pollinator Ambassadors program.
This appropriation is available until June 30,
2021, by which time the project must be
completed and final products delivered.
new text end

new text begin (h) Morris Prairie Pollinator Demonstration Area and Education new text end

new text begin $550,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota for the West Central Research
and Outreach Center at Morris to restore 17
acres of native prairie for pollinators and to
construct wayside shelters and kiosks along
an existing trail to provide information to
visitors on the importance of pollinators and
native prairie ecosystems. This appropriation
is available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (i) Expanding Nature Knowledge and Experience with New Interactive Exhibits at North Mississippi Regional Park new text end

new text begin $500,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the Minneapolis Park
and Recreation Board to develop new
interactive exhibits at North Mississippi
Regional Park to encourage the approximately
326,000 annual visitors to better understand
and explore the river and surrounding natural
area.
new text end

new text begin (j) Update International Wolf Center Exhibits new text end

new text begin $1,000,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the International Wolf
Center to design, construct, and install new
interactive educational exhibits to help
Minnesotans understand coexistence with the
state's wolf populations and ongoing wolf-
management efforts.
new text end

new text begin (k) Expanding the State's Reuse Economy to Conserve Natural Resources new text end

new text begin $275,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with ReUSE Minnesota to
provide outreach and technical assistance to
communities and small businesses to create
and expand opportunities for reusing, renting,
and repairing consumer goods as an alternative
to using new materials so solid-waste disposal
and its impacts are measurably reduced and
more local reuse jobs are created. Net income
generated as part of this appropriation may be
reinvested in the project if a plan for
reinvestment is approved in the work plan.
new text end

new text begin (l) Expand Materials Reuse and Recycling Jobs Program new text end

new text begin $665,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with Better Futures
Minnesota, in cooperation with the Northwest
Indian Community Development Corporation,
and $135,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota for the Natural Resources
Research Institute in Duluth to expand
building deconstruction and material-reuse
practices and jobs in partnership with counties,
tribes, and municipalities statewide and to
document the environmental, health, and
economic benefits of these practices. Net
income generated by Better Futures as part of
this or a previous related appropriation from
the environment and natural resources trust
fund may be reinvested in the project if a plan
for reinvestment is approved in the work plan.
new text end

new text begin Subd. 6. new text end new text begin Aquatic and Terrestrial Invasive Species new text end

new text begin -0- new text end

new text begin 5,760,000 new text end

new text begin (a) Minnesota Invasive Terrestrial Plants and Pests Center - Phase 4 new text end

new text begin $3,500,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota for high-priority research at the
Invasive Terrestrial Plants and Pests Center
to protect Minnesota's natural and agricultural
resources from terrestrial invasive plants,
pathogens, and pests as identified through the
center's strategic prioritization process. This
appropriation is available until June 30, 2023,
by which time the project must be completed
and final products delivered.
new text end

new text begin (b) Palmer Amaranth Detection and Eradication Continuation new text end

new text begin $431,000 the second year is from the trust
fund to the commissioner of agriculture to
continue to monitor, ground survey, and
control Palmer amaranth primarily in
conservation plantings and to develop and
implement aerial-survey methods to prevent
infestation and protect prairies, other natural
areas, and agricultural crops.
new text end

new text begin (c) Evaluate Control Methods for Invasive Hybrid Cattails new text end

new text begin $131,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with Voyageurs National
Park to evaluate the effectiveness of
mechanical harvesting and managing muskrat
populations to remove exotic hybrid cattails
and restore fish and wildlife habitat in
Minnesota wetlands. This appropriation is
available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (d) Developing RNA Interference to Control Zebra Mussels new text end

new text begin $500,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the United States
Geological Survey to develop a genetic control
tool that exploits the natural process of RNA
silencing to specifically target and effectively
control zebra mussels without affecting other
species or causing other nontarget effects. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (e) Install and Evaluate an Invasive Carp Deterrent for Mississippi River Locks and Dams new text end

new text begin $998,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota in cooperation with the United
States Army Corps of Engineers and the
United States Fish and Wildlife Service to
install, evaluate, and optimize a system in
Mississippi River locks and dams to deter
passage of invasive carp without negatively
impacting native fish and to evaluate the
ability of predator fish in the pools above the
locks and dams to consume young carp. The
project must conduct a cost comparison of
equipment purchase versus lease options and
choose the most effective option. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (f) Determining Risk of Toxic Alga in Minnesota Lakes new text end

new text begin $200,000 the second year is from the trust
fund to the Science Museum of Minnesota for
the St. Croix Watershed Research Station to
determine the historical distribution,
abundance, and toxicity of the invasive
blue-green alga, Cylindrospermopsis
raciborskii, in about 20 lakes across Minnesota
and inform managers and the public about the
alga's spread and health risks. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin Subd. 7. new text end new text begin Air Quality and Renewable Energy new text end

new text begin -0- new text end

new text begin 1,200,000 new text end

new text begin (a) Develop Solar Window Concentrators for Electricity new text end

new text begin $350,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop, evaluate, and
optimize thin film silicon-based luminescent
solar window concentrators in order to
produce inexpensive, clean energy and reduce
air pollution. This appropriation is subject to
Minnesota Statutes, section 116P.10. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (b) Demonstrations for Community-Scale Storage Systems for Renewable Energy new text end

new text begin $550,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to install, demonstrate, and
evaluate three community-scale storage
systems for renewable energy and develop a
guidebook on storing renewable energy for
statewide use. This appropriation is available
until June 30, 2021, by which time the project
must be completed and final products
delivered.
new text end

new text begin (c) Develop Inexpensive Energy from Simple Roll-to-Roll Manufacturing new text end

new text begin $300,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop inexpensive,
high-efficiency solar energy with simple
roll-to-roll advanced manufacturing
technology, using new materials such as
perovskite to make solar cells. This
appropriation is subject to Minnesota Statutes,
section 116P.10. This appropriation is
available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin Subd. 8. new text end new text begin Methods to Protect or Restore Land, Water, and Habitat new text end

new text begin -0- new text end

new text begin 4,169,000 new text end

new text begin (a) Nongame Wildlife Program Acceleration new text end

new text begin $1,000,000 the second year is from the trust
fund to the commissioner of natural resources
to accelerate the nongame wildlife program
including rare wildlife data collection, habitat
management, collaborative land protection,
conservation education, and a new emphasis
on promoting nature tourism to benefit
wildlife, visitors, and rural communities.
new text end

new text begin (b) Develop Biomulch to Replace Plastic Soil Covering in Vegetable and Fruit Production to Increase Yield and Reduce Waste new text end

new text begin $310,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop and test the
performance of biodegradable biomulch to
increase yield, conserve water, suppress weeds
and pests, add nutrients to the soil, and replace
large amounts of nonrecyclable and
nondegradable plastic used in vegetable and
fruit production. This appropriation is
available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (c) Develop Market-Based Alternatives for Perennial Crops to Benefit Water Quality and Wildlife new text end

new text begin $150,000 the second year is from the trust
fund to the Science Museum of Minnesota for
the St. Croix Watershed Research Station to
design and evaluate at least six market-based
scenarios for perennial cropping systems in
Minnesota, including technological and
economic feasibility, and estimate their
potential to improve water quality and provide
wildlife habitat. This appropriation is available
until June 30, 2021, by which time the project
must be completed and final products
delivered.
new text end

new text begin (d) Agricultural Weed Control Using Autonomous Mowers new text end

new text begin $1,600,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota for the West Central Research
and Outreach Center at Morris to design,
integrate, and field-test an autonomous pasture
mower and solar charging station to control
weeds, reduce herbicide use, reduce energy
costs, and improve native vegetation and
forage quality on agricultural lands. This
appropriation is subject to Minnesota Statutes,
section 116P.10. This appropriation is
available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (e) Restoring Forests in Minnesota State Parks new text end

new text begin $250,000 the second year is from the trust
fund to the commissioner of natural resources
to restore at least 255 acres of high-quality
forests in state parks such as Itasca, Jay Cooke,
and Forestville Mystery Cave State Parks and
Greenleaf Lake State Recreation Area. This
appropriation is available until June 30, 2023,
by which time the project must be completed
and final products delivered.
new text end

new text begin (f) Develop Strategies for Timber Harvest to Minimize Soil Impacts to Maintain Healthy and Diverse Forests new text end

new text begin $200,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota to develop strategies and
practical tools to minimize soil compaction
and other impacts across a range of conditions
during timber harvest to maintain timber
availability, improve regeneration of diverse
forests, and benefit wildlife habitat. This
appropriation is available until June 30, 2022,
by which time the project must be completed
and final products delivered.
new text end

new text begin (g) Restoring Wetland Invertebrates to Revive Wildlife Habitat new text end

new text begin $400,000 the second year is from the trust
fund to the commissioner of natural resources
to assess invertebrate amphipods in wetlands
and explore stocking them as a valuable food
source for ducks and other wildlife in the
Prairie Pothole Region of the state. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (h) Preserving Minnesota's Native Orchids - Phase 2 new text end

new text begin $259,000 the second year is from the trust
fund to the Board of Regents of the University
of Minnesota for the Minnesota Landscape
Arboretum to expand collection and
preservation efforts to enable long-term
conservation of at least 25 of the 48 native
orchid species in Minnesota and to continue
propagation and cultivation research. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin Subd. 9. new text end new text begin Land Acquisition, Habitat, and Recreation new text end

new text begin -0- new text end

new text begin 17,439,000 new text end

new text begin (a) Grants for Local Parks, Trails, and Natural Areas new text end

new text begin $2,000,000 the second year is from the trust
fund to the commissioner of natural resources
to solicit, rank, and fund competitive matching
grants for local parks, trail connections, and
natural and scenic areas under Minnesota
Statutes, section 85.019. The appropriation is
for local nature-based recreation and
connections to regional and state natural areas
and recreation facilities and does not include
athletic facilities such as sport fields, courts,
and playgrounds. This appropriation is
available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (b) Develop Mesabi Trail Segment From County Road 88 to Ely new text end

new text begin $600,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the St. Louis and Lake
Counties Regional Railroad Authority for
environmental assessment, permitting,
right-of-way easements or other acquisition
as needed, engineering, and construction of
an approximately three-mile-long bituminous
surface section of the Mesabi Trail between
Ely and the intersection of Highway 169 and
County Road 88. This appropriation is
available until June 30, 2022, by which time
the project must be completed and final
products delivered.
new text end

new text begin (c) Harmony State Trail Extension Land Acquisition new text end

new text begin $235,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the city of Harmony to
acquire fee title of about 16 parcels to allow
for the approximate six-mile extension of the
legislatively authorized state trail from
Harmony south to the Iowa state border with
a spur to Niagara Cave. The land must be
transferred to the state after it has been
purchased.
new text end

new text begin (d) Mississippi Blufflands State Trail - Red Wing Barn Bluff to Colvill Park Segment new text end

new text begin $550,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the city of Red Wing
to be used with other funds to construct an
approximate three-quarter-mile-long
hard-surfaced segment of the Mississippi
Blufflands State Trail along Red Wing's
Mississippi River riverfront from Barn Bluff
Regional Park to Colvill Park. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (e) Swedish Immigrant Regional Trail Segment within Interstate State Park new text end

new text begin $2,254,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with Chisago County
Environmental Services to construct an
approximate one-half-mile regional county
trail segment within Interstate State Park from
the end point of the existing trail at the park
boundary to city hall including a trail bridge
over the ravine and parking and trailhead
improvements and to conduct a natural and
cultural review to determine the feasibility and
route of a future section of the trail through
the park.This appropriation is available until
June 30, 2021, by which time the project must
be completed and final products delivered.
new text end

new text begin (f) Enhancement Plan for Superior Hiking Trail new text end

new text begin $100,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the Superior Hiking
Trail Association to evaluate improvements
to the 310-mile-long Superior Hiking Trail
including routing, safety, water management,
maintenance, and other environmental,
recreational, and design issues and to develop
an interactive trail-management system to
capture efficiencies and best management
practices.
new text end

new text begin (g) Protecting Mississippi River Headwaters Lands through Local, State, and Federal Partnership new text end

new text begin $700,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the city of Baxter, in
cooperation with Brainerd Public Schools and
the Camp Ripley Sentinel Landscape Program,
to acquire about 200 acres of forested land on
the upper Mississippi River adjacent to
Mississippi River Overlook Park for multiple
public benefits, including being an outdoor
classroom for local schools. To be eligible for
reimbursement, costs for real estate
transactions must be specific to this acquisition
and documented as required in subdivision 15,
paragraph (k).
new text end

new text begin (h) Protecting North-Central Minnesota Lakes new text end

new text begin $750,000 the second year is from the trust
fund to the commissioner of natural resources
for an agreement with the Crow Wing County
Soil and Water Conservation District to
increase watershed protection to maintain and
improve water quality in lakes and rivers in
Aitkin and Crow Wing Counties with about
ten permanent RIM conservation easements
and 12 forest stewardship plans and by
implementing six best management practices.
Of this amount, up to $59,000 may be
contributed to an easement stewardship
account established under Minnesota Statutes,
section 103B.103, as approved in the work
plan.
new text end

new text begin (i) Easement Program for Native Prairie Bank new text end

new text begin $2,000,000 the second year is from the trust
fund to the commissioner of natural resources
to provide technical stewardship assistance to
private landowners, restore and enhance about
270 acres of native prairie protected by
easements in the native prairie bank, and
acquire easements for the native prairie bank
in accordance with Minnesota Statutes, section
84.96, on about 275 acres, including preparing
initial baseline property assessments. Up to
$120,000 of this appropriation may be
deposited in the natural resources conservation
easement stewardship account, created in
Minnesota Statutes, section 84.69, proportional
to the number of easement acres acquired. A
list of proposed easement acquisitions and
restoration sites for the native prairie bank are
required in the work plan. This appropriation
is available until June 30, 2021, by which time
the project must be completed and final
products delivered.
new text end

new text begin (j) Minnesota State Trail Development new text end

new text begin $2,500,000 the second year is from the trust
fund to the commissioner of natural resources
to expand high-priority recreational
opportunities on Minnesota's state trails by
developing new trail segments and
rehabilitating, improving, and enhancing
existing state trails. High-priority trail
segments to develop and enhance include but
are not limited to the Gateway, Gitchi Gami,
Paul Bunyan, and Heartland State Trails. A
proposed list of trail projects on legislatively
authorized state trails is required in the work
plan. This appropriation is available until June
30, 2021, by which time the project must be
completed and final products delivered.
new text end

new text begin (k) Minnesota State Parks and State Trails new text end

new text begin $2,500,000 the second year is from the trust
fund to the commissioner of natural resources
to acquire about 163 acres of high-priority
inholdings from willing sellers within the
legislatively authorized boundaries of state
parks and trails in order to protect Minnesota's
natural heritage, enhance outdoor recreational
opportunities, and improve the efficiency of
public land management. Priorities include
but are not limited to Tettegouche, Sibley, and
Minneopa State Parks and the Goodhue
Pioneer State Trail. A list of proposed
acquisitions is required in the work plan. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin (l) Scientific and Natural Areas Program new text end

new text begin $3,250,000 the second year is from the trust
fund to the commissioner of natural resources
for the scientific and natural areas program.
Of this amount, $1,500,000 is for habitat
restoration activities, $500,000 is for scientific
and natural areas public engagement and
outreach, and $1,250,000 is to acquire strategic
high-quality lands that meet criteria for
scientific and natural areas under Minnesota
Statutes, section 86A.05, from willing sellers.
A list of proposed acquisitions and restorations
is required in the work plan. This
appropriation is available until June 30, 2021,
by which time the project must be completed
and final products delivered.
new text end

new text begin Subd. 10. new text end new text begin Emerging Issues Account new text end

new text begin -0- new text end

new text begin 439,000 new text end

new text begin $439,000 the second year is from the trust
fund to an emerging issues account authorized
in Minnesota Statutes, section 116P.08,
subdivision 4, paragraph (d).
new text end

new text begin Subd. 11. new text end new text begin Wastewater Treatment Recommendations new text end

new text begin (a) Wastewater Treatment System Grants new text end

new text begin Until June 30, 2021, the Legislative-Citizen
Commission on Minnesota Resources must
consider recommending up to $10,000,000 of
the available money from the trust fund to
match appropriations from the bond proceeds
fund for wastewater infrastructure funding that
exceed $10,000,000 per year for expenditure
by the Public Facilities Authority for
wastewater treatment grants to home rule
charter and statutory cities and towns with a
population under 5,000. The grants must be
issued under Minnesota Statutes, sections
446A.072 and 446A.073. The
recommendations may include a technical
assistance program for recipients eligible
under this subdivision. The commission must
work with the Public Facilities Authority in
developing its recommendations.
new text end

new text begin (b) Wastewater Treatment System Loans new text end

new text begin The commission must consider recommending
up to five percent of the corpus of the trust
fund for loans to the Public Facilities
Authority to issue loans under Minnesota
Statutes, section 446A.07, to home rule charter
and statutory cities and towns with a
population under 5,000.
new text end

new text begin (c) Work Program and Semiannual Progress Report new text end

new text begin The work plan required under Minnesota
Statutes, section 116P.05, subdivision 2,
paragraph (b), must consist of lists showing
the fundable ranges for grants and loans
pursuant to this subdivision.
new text end

new text begin Subd. 12. new text end new text begin Contract Agreement Reimbursement new text end

new text begin -0- new text end

new text begin 135,000 new text end

new text begin $135,000 the second year is from the trust
fund to the commissioner of natural resources,
at the direction of the Legislative-Citizen
Commission on Minnesota Resources, for
expenses incurred for preparing and
administering contracts for the agreements
specified in this section. The commissioner
must provide documentation to the
Legislative-Citizen Commission on Minnesota
Resources on the expenditure of these funds.
new text end

new text begin Subd. 13. new text end new text begin Availability of Appropriations new text end

new text begin Money appropriated in this section may not
be spent on activities unless they are directly
related to and necessary for a specific
appropriation and are specified in the work
plan approved by the Legislative-Citizen
Commission on Minnesota Resources. Money
appropriated in this section must not be spent
on indirect costs or other institutional overhead
charges that are not directly related to and
necessary for a specific appropriation. Costs
that are directly related to and necessary for
an appropriation, including financial services,
human resources, information services, rent,
and utilities, are eligible only if the costs can
be clearly justified and individually
documented specific to the appropriation's
purpose and would not be generated by the
recipient but for receipt of the appropriation.
No broad allocations for costs in either dollars
or percentages are allowed. Unless otherwise
provided, the amounts in this section are
available until June 30, 2020, when projects
must be completed and final products
delivered. For acquisition of real property, the
appropriations in this section are available for
an additional fiscal year if a binding contract
for acquisition of the real property is entered
into before the expiration date of the
appropriation. If a project receives a federal
grant, the period of the appropriation is
extended to equal the federal grant period.
new text end

new text begin Subd. 14. new text end new text begin Data Availability Requirements new text end

new text begin Data collected by the projects funded under
this section must conform to guidelines and
standards adopted by the Office of MN.IT
Services. Spatial data must also conform to
additional guidelines and standards designed
to support data coordination and distribution
that have been published by the Minnesota
Geospatial Information Office. Descriptions
of spatial data must be prepared as specified
in the state's geographic metadata guideline
and must be submitted to the Minnesota
Geospatial Information Office. All data must
be accessible and free to the public unless
made private under the Data Practices Act,
Minnesota Statutes, chapter 13. To the extent
practicable, summary data and results of
projects funded under this section should be
readily accessible on the Internet and
identified as having received funding from the
environment and natural resources trust fund.
new text end

new text begin Subd. 15. new text end new text begin Project Requirements new text end

new text begin (a) As a condition of accepting an
appropriation under this section, an agency or
entity receiving an appropriation or a party to
an agreement from an appropriation must
comply with paragraphs (b) to (l) and
Minnesota Statutes, chapter 116P, and must
submit a work plan and annual or semiannual
progress reports in the form determined by the
Legislative-Citizen Commission on Minnesota
Resources for any project funded in whole or
in part with funds from the appropriation.
Modifications to the approved work plan and
budget expenditures must be made through
the amendment process established by the
Legislative-Citizen Commission on Minnesota
Resources.
new text end

new text begin (b) A recipient of money appropriated in this
section that conducts a restoration using funds
appropriated in this section must use native
plant species according to the Board of Water
and Soil Resources' native vegetation
establishment and enhancement guidelines
and include an appropriate diversity of native
species selected to provide habitat for
pollinators throughout the growing season as
required under Minnesota Statutes, section
84.973.
new text end

new text begin (c) For all restorations conducted with money
appropriated under this section, a recipient
must prepare an ecological restoration and
management plan that, to the degree
practicable, is consistent with the
highest-quality conservation and ecological
goals for the restoration site. Consideration
should be given to soil, geology, topography,
and other relevant factors that would provide
the best chance for long-term success and
durability of the restoration project. The plan
must include the proposed timetable for
implementing the restoration, including site
preparation, establishment of diverse plant
species, maintenance, and additional
enhancement to establish the restoration;
identify long-term maintenance and
management needs of the restoration and how
the maintenance, management, and
enhancement will be financed; and take
advantage of the best-available science and
include innovative techniques to achieve the
best restoration.
new text end

new text begin (d) An entity receiving an appropriation in this
section for restoration activities must provide
an initial restoration evaluation at the
completion of the appropriation and an
evaluation three years after the completion of
the expenditure. Restorations must be
evaluated relative to the stated goals and
standards in the restoration plan, current
science, and, when applicable, the Board of
Water and Soil Resources' native vegetation
establishment and enhancement guidelines.
The evaluation must determine whether the
restorations are meeting planned goals,
identify any problems with implementing the
restorations, and, if necessary, give
recommendations on improving restorations.
The evaluation must be focused on improving
future restorations.
new text end

new text begin (e) All restoration and enhancement projects
funded with money appropriated in this section
must be on land permanently protected by a
conservation easement or public ownership.
new text end

new text begin (f) A recipient of money from an appropriation
under this section must give consideration to
contracting with Conservation Corps
Minnesota for contract restoration and
enhancement services.
new text end

new text begin (g) All conservation easements acquired with
money appropriated under this section must:
new text end

new text begin (1) be permanent;
new text end

new text begin (2) specify the parties to an easement in the
easement;
new text end

new text begin (3) specify all the provisions of an agreement
that are permanent;
new text end

new text begin (4) be sent to the Legislative-Citizen
Commission on Minnesota Resources in an
electronic format at least ten business days
before closing;
new text end

new text begin (5) include a long-term monitoring and
enforcement plan and funding for monitoring
and enforcing the easement agreement; and
new text end

new text begin (6) include requirements in the easement
document to protect the quantity and quality
of groundwater and surface water through
specific activities such as keeping water on
the landscape, reducing nutrient and
contaminant loading, and not permitting
artificial hydrological modifications.
new text end

new text begin (h) For any acquisition of lands or interest in
lands, a recipient of money appropriated under
this section must not agree to pay more than
100 percent of the appraised value for a parcel
of land using this money to complete the
purchase, in part or in whole, except that up
to ten percent above the appraised value may
be allowed to complete the purchase, in part
or in whole, using this money if permission is
received in advance of the purchase from the
Legislative-Citizen Commission on Minnesota
Resources.
new text end

new text begin (i) For any acquisition of land or interest in
land, a recipient of money appropriated under
this section must give priority to high-quality
natural resources or conservation lands that
provide natural buffers to water resources.
new text end

new text begin (j) For new lands acquired with money
appropriated under this section, a recipient
must prepare an ecological restoration and
management plan in compliance with
paragraph (c), including sufficient funding for
implementation unless the work plan addresses
why a portion of the money is not necessary
to achieve a high-quality restoration.
new text end

new text begin (k) To ensure public accountability for using
public funds, a recipient of money
appropriated under this section must, within
60 days of the transaction, provide to the
Legislative-Citizen Commission on Minnesota
Resources documentation of the selection
process used to identify parcels acquired and
provide documentation of all related
transaction costs, including but not limited to
appraisals, legal fees, recording fees,
commissions, other similar costs, and
donations. This information must be provided
for all parties involved in the transaction. The
recipient must also report to the
Legislative-Citizen Commission on Minnesota
Resources any difference between the
acquisition amount paid to the seller and the
state-certified or state-reviewed appraisal, if
a state-certified or state-reviewed appraisal
was conducted.
new text end

new text begin (l) A recipient of an appropriation from the
trust fund under this section must acknowledge
financial support from the environment and
natural resources trust fund in project
publications, signage, and other public
communications and outreach related to work
completed using the appropriation.
Acknowledgment may occur, as appropriate,
through use of the trust fund logo or inclusion
of language attributing support from the trust
fund. Each direct recipient of money
appropriated in this section, as well as each
recipient of a grant awarded pursuant to this
section, must satisfy all reporting and other
requirements incumbent upon constitutionally
dedicated funding recipients as provided in
Minnesota Statutes, section 3.303, subdivision
10, and Minnesota Statutes, chapter 116P.
new text end

new text begin Subd. 16. new text end new text begin Payment Conditions and Capital-Equipment Expenditures new text end

new text begin (a) All agreements, grants, or contracts
referred to in this section must be administered
on a reimbursement basis unless otherwise
provided in this section. Notwithstanding
Minnesota Statutes, section 16A.41,
expenditures made on or after July 1, 2018,
or the date the work plan is approved,
whichever is later, are eligible for
reimbursement unless otherwise provided in
this section. Periodic payments must be made
upon receiving documentation that the
deliverable items articulated in the approved
work plan have been achieved, including
partial achievements as evidenced by approved
progress reports. Reasonable amounts may be
advanced to projects to accommodate
cash-flow needs or match federal money. The
advances must be approved as part of the work
plan. No expenditures for capital equipment
are allowed unless expressly authorized in the
project work plan.
new text end

new text begin (b) Single-source contracts as specified in the
approved work plan are allowed.
new text end

new text begin Subd. 17. new text end new text begin Purchasing Recycled and Recyclable Materials new text end

new text begin A political subdivision, public or private
corporation, or other entity that receives an
appropriation under this section must use the
appropriation in compliance with Minnesota
Statutes, section 16C.0725, regarding
purchasing recycled, repairable, and durable
materials and Minnesota Statutes, section
16C.073, regarding purchasing and using
paper stock and printing.
new text end

new text begin Subd. 18. new text end new text begin Energy Conservation and Sustainable Building Guidelines new text end

new text begin A recipient to whom an appropriation is made
under this section for a capital improvement
project must ensure that the project complies
with the applicable energy conservation and
sustainable building guidelines and standards
contained in law, including Minnesota
Statutes, sections 16B.325, 216C.19, and
216C.20, and rules adopted under those
sections. The recipient may use the energy
planning, advocacy, and State Energy Office
units of the Department of Commerce to
obtain information and technical assistance
on energy conservation and alternative-energy
development relating to planning and
constructing the capital improvement project.
new text end

new text begin Subd. 19. new text end new text begin Accessibility new text end

new text begin Structural and nonstructural facilities must
meet the design standards in the Americans
with Disabilities Act (ADA) accessibility
guidelines.
new text end

new text begin Subd. 20. new text end new text begin Carryforward; Extension new text end

new text begin (a) The availability of the appropriations for
the following projects are extended to June
30, 2019:
new text end

new text begin (1) Laws 2014, chapter 226, section 2,
subdivision 6, paragraph (j), Dredged
Sediment for Forest Restoration on
Unproductive Minelands;
new text end

new text begin (2) Laws 2014, chapter 226, section 2,
subdivision 7, paragraph (b), Metropolitan
Regional Park System Acquisition, as
extended by Laws 2017, chapter 96, section
2, subdivision 18, paragraph (a), clause (5);
new text end

new text begin (3) Laws 2015, chapter 76, section 2,
subdivision 3, paragraph (b), County Geologic
Atlases - Part B;
new text end

new text begin (4) Laws 2015, chapter 76, section 2,
subdivision 4, paragraph (a), Understanding
Water Scarcity, Threats, and Values to
Improve Management;
new text end

new text begin (5) Laws 2015, chapter 76, section 2,
subdivision 6, paragraph (c), Biological
Control of Canada Thistle;
new text end

new text begin (6) Laws 2015, chapter 76, section 2,
subdivision 6, paragraph (d), Preventing New
Disease of Pines in Minnesota;
new text end

new text begin (7) Laws 2015, chapter 76, section 2,
subdivision 9, paragraph (d), Native Prairie
Stewardship and Prairie Bank Easement
Acquisition;
new text end

new text begin (8) Laws 2015, chapter 76, section 2,
subdivision 9, paragraph (g), Metro
Conservation Corridors Phase VIII - Priority
Expansion of Minnesota Valley National
Wildlife Refuge;
new text end

new text begin (9) Laws 2015, chapter 76, section 2,
subdivision 10, Emerging Issues Account; and
new text end

new text begin (10) Laws 2016, chapter 186, section 2,
subdivision 9, paragraph (g), Otter Tail River
Recreational Trail Acquisition.
new text end

new text begin (b) The availability of the appropriations for
the following projects are extended to June
30, 2020:
new text end

new text begin (1) Laws 2015, chapter 76, section 2,
subdivision 9, paragraph (b), Metropolitan
Regional Park System Land Acquisition -
Phase IV;
new text end

new text begin (2) Laws 2016, chapter 186, section 2,
subdivision 10, paragraph (b), Grants
Management System; and
new text end

new text begin (3) Laws 2017, chapter 96, section 2,
subdivision 6, paragraph (d), Adapting Stream
Barriers to Remove Common Carp.
new text end

new text begin (c) The availability of the appropriation under
Laws 2017, chapter 96, section 2, subdivision
8, paragraph (l), Conservation Reserve
Enhancement Program (CREP), is extended
to June 30, 2022.
new text end

new text begin (d) The availability of the appropriation under
Laws 2017, chapter 96, section 2, subdivision
3, paragraph (n), Pollinator Research and
Outreach, is extended to June 30, 2023.
new text end

new text begin Subd. 21. new text end new text begin Fiscal Year 2020 Recommendations new text end

new text begin For fiscal year 2020, the commission shall
consider recommending funding for the
Pollution Control Agency to clean up a closed
landfill in Burnsville for the protection of the
state's air, water, land, fish, and wildlife from
significant contamination. Any deadlines
established by the commission for submission
of proposals for the commission's fiscal year
2020 recommendations are waived until July
15, 2018, for proposals authorized under this
subdivision.
new text end

Sec. 3.

Minnesota Statutes 2016, section 116P.08, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

Money from the trust fund may not be spent for:

(1) purposes of environmental compensation and liability under chapter 115B and
response actions under chapter 115C;

(2) purposes of municipal water pollution control new text begin in municipalities with a population of
5,000 or more new text end under the authority of chapters 115 and 116;

(3) costs associated with the decommissioning of nuclear power plants;

(4) hazardous waste disposal facilities;

(5) solid waste disposal facilities; or

(6) projects or purposes inconsistent with the strategic plan.

Sec. 4.

Minnesota Statutes 2016, section 116P.12, subdivision 1, is amended to read:

Subdivision 1.

Loans authorized.

(a) If the principal of the trust fund equals or exceeds
$200,000,000, the commission may vote to set aside up to five percent of the principal of
the trust fund for water system improvement loans. The purpose of water system improvement
loans is to offer below market rate interest loans to local units of government for the purposes
of water system improvements.

(b) The interest on a loan shall be calculated on the declining balance at a rate deleted text begin four
percentage points below deleted text end new text begin that is the greater of one percent or 50 percent of new text end the secondary
market yield of one-year United States Treasury bills calculated according to section 549.09,
subdivision 1, paragraph (c).

(c) An eligible project must prove that existing federal or state loans or grants have not
been adequate.

(d) Payments on the principal and interest of loans under this section must be credited
to the trust fund.

(e) Repayment of loans made under this section must be completed within 20 years.

(f) The Minnesota Public Facilities Authority must report to the commission each year
on deleted text begin the loan program deleted text end new text begin any loans made to the authority new text end under this section.

Sec. 5.

Laws 2015, chapter 76, section 2, subdivision 9, is amended to read:

Subd. 9. Land Acquisition for Habitat and Recreation

14,190,000

-0-

(a) State Parks and Trails Land
Acquisitions

$1,500,000 the first year is from the trust fund
to the commissioner of natural resources to
acquire at least 335 acres for authorized state
trails and critical parcels within the statutory
boundaries of state parks. State park land
acquired with this appropriation must be
sufficiently improved to meet at least
minimum management standards, as
determined by the commissioner of natural
resources. A list of proposed acquisitions must
be provided as part of the required work plan.
This appropriation is available until June 30,
2018, by which time the project must be
completed and final products delivered.

(b) Metropolitan Regional Park System
Land Acquisition - Phase IV

$1,000,000 the first year is from the trust fund
to the Metropolitan Council for grants to
acquire at least 133 acres of lands within the
approved park unit boundaries of the
metropolitan regional park system. This
appropriation may not be used to purchase
habitable residential structures. A list of
proposed fee title and easement acquisitions
must be provided as part of the required work
plan. This appropriation must be matched by
at least 40 percent of nonstate money that must
be committed by December 31, 2015, or the
appropriation cancels. This appropriation is
available until June 30, 2018, by which time
the project must be completed and final
products delivered.

(c) SNA Acquisition, Restoration,
Enhancement, and Public Engagement

$4,000,000 the first year is from the trust fund
to the commissioner of natural resources to
acquire at least 350 acres of lands with
high-quality native plant communities and rare
features to be established as scientific and
natural areas as provided in Minnesota
Statutes, section 86A.05, subdivision 5, restore
and improve at least 550 acres of scientific
and natural areas, and provide technical
assistance and outreach. A list of proposed
acquisitions must be provided as part of the
required work plan. Land acquired with this
appropriation must be sufficiently improved
to meet at least minimum management
standards, as determined by the commissioner
of natural resources. This appropriation is
available until June 30, 2018, by which time
the project must be completed and final
products delivered.

(d) Native Prairie Stewardship and Prairie
Bank Easement Acquisition

$3,325,000 the first year is from the trust fund
to the commissioner of natural resources to
acquire native prairie bank easements on at
least 675 acres, prepare baseline property
assessments, restore and enhance at least 1,000
acres of native prairie sites, and provide
technical assistance to landowners. Of this
amount, up to deleted text begin $135,000 deleted text end new text begin $195,000 new text end must be
deposited in a conservation easement
stewardship account. Deposits into the
conservation easement stewardship account
must be made upon closing on conservation
easements or at a time otherwise approved in
the work plan. A list of proposed easement
acquisitions must be provided as part of the
required work plan. This appropriation is
available until June 30, 2018, by which time
the project must be completed and final
products delivered.

(e) Metro Conservation Corridors - Phase
VIII Coordination, Mapping, and
Conservation Easements

$515,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with the Minnesota Land Trust
for Phase VIII of the Metro Conservation
Corridors partnership to provide coordination
and mapping for the partnership and to acquire
permanent conservation easements on at least
120 acres of strategic ecological landscapes
to protect priority natural areas in the
metropolitan area, as defined under Minnesota
Statutes, section 473.121, subdivision 2, and
portions of the surrounding counties. A list of
proposed easement acquisitions must be
provided as part of the required work plan.
Land acquired with this appropriation must
be sufficiently improved to meet at least
minimum management standards, as
determined by the commissioner of natural
resources. Expenditures are limited to the
identified project corridor areas as defined in
the work plan. Up to $40,000 may be used for
coordination and mapping for the Metro
Conservation Corridors. All conservation
easements must be perpetual and have a
natural resource management plan. A list of
proposed easement acquisitions must be
provided as part of the required work plan.
This appropriation is available June 30, 2018,
by which time the project must be completed
and final products delivered.

(f) Metro Conservation Corridors - Phase
VIII Strategic Lands Protection

$750,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with The Trust for Public Land
for Phase VIII of the Metro Conservation
Corridors partnership to acquire in fee at least
35 acres of high-quality priority state and local
natural areas in the metropolitan area, as
defined under Minnesota Statutes, section
473.121, subdivision 2, and portions of the
surrounding counties. A list of proposed
acquisitions must be provided as part of the
required work plan. Land acquired with this
appropriation must be sufficiently improved
to meet at least minimum management
standards, as determined by the commissioner
of natural resources. Expenditures are limited
to the identified project corridor areas as
defined in the work plan. This appropriation
may not be used to purchase habitable
residential structures, unless expressly
approved in the work plan. A list of fee title
acquisitions must be provided as part of the
required work plan. This appropriation is
available until June 30, 2018, by which time
the project must be completed and final
products delivered.

(g) Metro Conservation Corridors - Phase
VIII Priority Expansion of Minnesota
Valley National Wildlife Refuge

$500,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with the Minnesota Valley
National Wildlife Refuge Trust, Inc. for Phase
VIII of the Metro Conservation Corridors
partnership to acquire in fee at least 100 acres
of priority habitat for the Minnesota Valley
National Wildlife Refuge in the metropolitan
area, as defined under Minnesota Statutes,
section 473.121, subdivision 2, and portions
of the surrounding counties. A list of proposed
acquisitions must be provided as part of the
required work plan. Land acquired with this
appropriation must be sufficiently improved
to meet at least minimum management
standards. Expenditures are limited to the
identified project corridor areas as defined in
the work plan. This appropriation may not be
used to purchase habitable residential
structures, unless expressly approved in the
work plan. This appropriation is available until
June 30, 2018, by which time the project must
be completed and final products delivered.

(h) Metro Conservation Corridors - Phase
VIII Wildlife Management Area
Acquisition

$400,000 the first year is from the trust fund
to the commissioner of natural resources for
Phase VIII of the Metro Conservation
Corridors partnership to acquire in fee at least
82 acres along the lower reaches of the
Vermillion River in Dakota County within the
Gores Pool Wildlife Management Area. Land
acquired with this appropriation must be
sufficiently improved to meet at least
minimum management standards. This
appropriation may not be used to purchase
habitable residential structures, unless
expressly approved in the work plan. This
appropriation is available until June 30, 2018,
by which time the project must be completed
and final products delivered.

(i) Mesabi Trail Development Soudan to
Ely - Phase II

$1,000,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with the St. Louis and Lake
Counties Regional Railroad Authority for the
right-of-way acquisition, design, and
construction of segments of the Mesabi Trail,
totaling approximately seven miles between
Soudan and Ely. This appropriation is
available until June 30, 2018, by which time
the project must be completed and final
products delivered.

(j) Multi-benefit Watershed Scale
Conservation on North Central Lakes

$950,000 the first year is from the trust fund
to the Board of Water and Soil Resources to
secure permanent conservation easements on
at least 480 acres of high-quality habitat in
Crow Wing and Cass Counties. Of this
amount, up to $65,000 must be deposited in a
conservation easement stewardship account;
and $54,000 is for an agreement with the
Leech Lake Area Watershed Foundation in
cooperation with Crow Wing County Soil and
Water Conservation District and Cass County
Soil and Water Conservation District. Deposits
into the conservation easement stewardship
account must be made upon closing on
conservation easements or at a time otherwise
approved in the work plan. A list of proposed
easement acquisitions must be provided as
part of the required work plan. This
appropriation is available until June 30, 2018,
by which time the project must be completed
and final products delivered.

(k) Conservation Easement Assessment and
Valuation System Development

$250,000 the first year is from the trust fund
to the Board of Regents of the University of
Minnesota to assess the effectiveness of
existing conservation easements acquired
through state expenditures at achieving their
intended outcomes of public value and
ecological benefits and to develop a
standardized, objective conservation easement
valuation system for guiding future state
investments in conservation easements to
ensure the proposed environmental benefits
are being achieved in a cost-effective manner.
This appropriation is available until June 30,
2018, by which time the project must be
completed and final products delivered.

Sec. 6.

Laws 2017, chapter 96, section 2, subdivision 8, is amended to read:

Subd. 8. Methods to Protect or Restore Land, Water, and Habitat

2,729,000

16,554,000

5,000,000

(a) Optimizing the Nutrition of Roadside Plants for Pollinators

$815,000 the first year is from the trust fund
to the Board of Regents of the University of
Minnesota in cooperation with the
Departments of Agriculture, Natural
Resources, and Transportation and the Board
of Water and Soil Resources to produce
site-specific recommendations for roadside
plantings in Minnesota to maximize the
nutritional health of native bees and monarch
butterflies that rely on roadside habitat
corridors. This appropriation is available until
June 30, 2020, by which time the project must
be completed and final products delivered.

(b) Promoting Conservation Biocontrol of Beneficial Insects

$400,000 the first year is from the trust fund
to the Board of Regents of the University of
Minnesota to research integrated pest
management strategies, including insecticide
alternatives, and overwintering habitat sites
to conserve beneficial insects, including bees,
butterflies, and predator insects. The integrated
pest management strategies will be used to
develop best management practices to increase
pollinator and beneficial insect diversity and
abundance in various restored habitats. This
appropriation is available until June 30, 2020,
by which time the project must be completed
and final products delivered.

(c) Evaluating the Use of Bison to Restore and Preserve Savanna Habitat

$388,000 the first year is from the trust fund
to the Board of Regents of the University of
Minnesota, Cedar Creek Ecosystem Science
Reserve, to research combined bison grazing
and fire management strategies to restore
Minnesota's oak savanna ecosystems. This
appropriation is available until June 30, 2020,
by which time the project must be completed
and final products delivered.

(d) State Park Pollinator Habitat Restoration

$672,000 the first year is from the trust fund
to the commissioner of natural resources to
restore at least 520 acres of monarch butterfly
and other native pollinator habitats in at least
seven state parks in the Minnesota Prairie
Conservation Plan core areas and establish
pollinator plantings and interpretive exhibits
in at least ten state parks. This appropriation
is available until June 30, 2021, by which time
the project must be completed and final
products delivered.

(e) Enhancing Spawning Habitat Restoration in Minnesota Lakes

$294,000 the first year is from the trust fund
to the Board of Regents of the University of
Minnesota, St. Anthony Falls Laboratory, in
cooperation with the Department of Natural
Resources to enhance efforts to increase
natural reproduction of fish in Minnesota lakes
by assessing wave energy impacts on
near-shore spawning habitat. This
appropriation is available until June 30, 2020,
by which time the project must be completed
and final products delivered.

(f) Prescribed-Fire Management for Roadside Prairies

$345,000 the first year is from the trust fund
to the commissioner of transportation to
enhance the prescribed-fire program to manage
roadsides to protect and increase biodiversity
and pollinator habitat. This appropriation is
available until June 30, 2020, by which time
the project must be completed and final
products delivered.

(g) Minnesota Bee and Beneficial Species Habitat Restoration

$732,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with Pheasants Forever in
cooperation with the University of Minnesota
and the Minnesota Honey Producers
Association to restore approximately 800 acres
of permanently protected land to enhance bee,
butterfly, beneficial insect, and grassland bird
habitats. This appropriation is available until
June 30, 2021, by which time the project must
be completed and final products delivered.

(h) Mississippi and Vermillion Rivers Restoration of Prairie, Savanna, and Forest Habitat - Phase X

$213,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with Friends of the Mississippi
River for continued implementation of the
Metro Conservation Corridors partnership by
improving at least 80 acres of habitat at
approximately seven sites along the
Mississippi River and Vermillion River
corridors. Expenditures are limited to the
identified project corridor areas as defined in
the work plan. A list of proposed restoration
sites must be provided as part of the required
work plan. Plant and seed materials must
follow the Board of Water and Soil Resources'
native vegetation establishment and
enhancement guidelines. This appropriation
is available until June 30, 2020, by which time
the project must be completed and final
products delivered.

(i) Community Stewardship to Restore Urban Natural Resources - Phase X

$524,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with Great River Greening to
work with volunteers for continued
implementation of the Metro Conservation
Corridors partnership to restore approximately
250 acres of forest, prairie, woodland, wetland,
and shoreline throughout the greater Twin
Cities metropolitan area. Expenditures are
limited to the identified project corridor areas
as defined in the work plan. A list of proposed
restoration sites and evaluations must be
provided as part of the required work plan.
Plant and seed materials must follow the Board
of Water and Soil Resources' native vegetation
establishment and enhancement guidelines.
This appropriation is available until June 30,
2020, by which time the project must be
completed and final products delivered.

(j) Economic Assessment of Precision Conservation and Agriculture

$400,000 the first year is from the trust fund
to the commissioner of natural resources for
an agreement with Pheasants Forever to
demonstrate a new approach to promote
conservation practices utilizing
return-on-investment analysis and identifying
revenue-negative acres on agricultural land to
assist farmers in implementing conservation
practices that will provide environmental and
economic benefits. This appropriation is
available until June 30, 2020, by which time
the project must be completed and final
products delivered.

(k) Conservation Reserve Enhancement Program (CREP) Outreach and Implementation

$6,000,000 the first year is from the trust fund
to the Board of Water and Soil Resources to
fund staff at soil and water conservation
districts to assist landowners participating in
the federal Conservation Reserve
Enhancement Program. This appropriation is
contingent upon receipt of federal funds for
implementation. This appropriation is
available until June 30, 2020, by which time
the project must be completed and final
products delivered.

(l) Conservation Reserve Enhancement Program (CREP)

$2,729,000 in fiscal year 2017 and $5,771,000
the first year and $5,000,000 the second year
are from the trust fund to the Board of Water
and Soil Resources to acquire permanent
conservation easements and restore land under
Minnesota Statutes, section 103F.515. new text begin Of this
amount, up to $2,184,000 is for establishing
a monitoring and enforcement fund as
approved in the work plan and subject to
Minnesota Statutes, section 103B.103. new text end This
work may be done in cooperation with the
federal Conservation Reserve Enhancement
Program. This appropriation is available until
June 30, 2021, by which time the project must
be completed and final products delivered.

Sec. 7. new text begin LAKE WINONA MANAGEMENT; USING OFFSET, ADAPTIVE
PLANNING.
new text end

new text begin (a) To facilitate implementation of the Lake Winona total maximum daily load, the
Alexandria Lake Area Sanitary District may fund or perform lake management activities
in Lake Winona and in Lake Agnes. Lake management activities may include, but are not
limited to, carp removal and alum treatment. If the district agrees to fund or perform lake
management activities in Lake Winona and in Lake Agnes, the commissioner of the Pollution
Control Agency shall do one of the following unless the district chooses another path to
compliance that conforms to state and federal law, such as facility construction:
new text end

new text begin (1) approve an offset of the phosphorous loading proportional to the reduction achievable
through lake management activities in Lake Winona and Lake Agnes creditable to the
Alexandria Lake Area Sanitary District's wastewater treatment facility and issue or amend
the district's NPDES permit MN004738 to include the offset. The approved offset may be
related to the lake eutrophication response variable chlorophyll-a, but shall ensure the district
can achieve compliance with phosphorus effluent limits through wastewater optimization
techniques without performing capital upgrades to the wastewater treatment facility. The
lake management activities contemplated under this paragraph need not be completed before
the commissioner approves the offset and related discharge limits or issues the permit, but
the permit may include a schedule of compliance outlining the required lake management
activities and requiring that lake management activities in Lake Winona and Lake Agnes
begin immediately upon permit issuance. The approved offset and related permit language
must be consistent with Clean Water Act requirements and Minnesota Statutes, section
115.03, subdivision 10; or
new text end

new text begin (2) amend the district's NPDES permit MN004738 in a manner consistent with state and
federal law to include an integrated and adaptive lake management plan and to extend the
final compliance deadline for the final phosphorus concentration effluent limit related to
the site specific standard for Lake Winona contained in the district's permit until the time
that the adaptive lake management plan, including carp removal in Lake Winona, can be
completed and the lake can be reassessed. The permit may include a schedule of compliance
outlining the required lake management activities and requiring that lake management
activities in Lake Winona and Lake Agnes begin immediately upon permit issuance.
new text end

new text begin (b) If the district agrees to fund or perform the lake management activities identified in
paragraph (a), the district may cooperate with the city of Alexandria in those efforts. The
district's responsibility for lake management activities in Lake Winona and Lake Agnes
terminates upon completion of the lake management activities identified in the schedule of
compliance contemplated under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
Alexandria Lake Area Sanitary District and its chief clerical officer timely complete their
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end

ARTICLE 2

ENVIRONMENT AND NATURAL RESOURCES TRUST FUND APPROPRIATION
BONDS

Section 1.

new text begin [16A.969] ENVIRONMENT AND NATURAL RESOURCES TRUST
FUND APPROPRIATION BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of
the state payable during a biennium from one or more of the following sources:
new text end

new text begin (1) money appropriated by law from the environment and natural resources trust fund
in any biennium for debt service due with respect to obligations described in subdivision
2;
new text end

new text begin (2) proceeds of the sale of obligations described in subdivision 2;
new text end

new text begin (3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph (d); and
new text end

new text begin (4) investment earnings on amounts in clauses (1) to (3).
new text end

new text begin (c) "Debt service" means the amount payable in any biennium of principal, premium, if
any, and interest on appropriation bonds.
new text end

new text begin (d) "Environment and natural resources trust fund" or "trust fund" means the fund
established under the Minnesota Constitution, article XI, section 14, and governed by that
section and chapter 116P.
new text end

new text begin Subd. 2. new text end

new text begin Authorization to issue appropriation bonds; accounts. new text end

new text begin (a) Subject to the
limitations of this subdivision, the commissioner may sell and issue appropriation bonds of
the state under this section for public purposes and in amounts as provided by law. This
authorization meets the public purposes established by the Minnesota Constitution, article
XI, section 14 and chapter 116P, and shall be a supplement to the traditional sources of
funding for environment and natural resources activities.
new text end

new text begin (b) The special appropriation trust fund bond proceeds fund is established in the state
treasury. Proceeds of the appropriation bonds issued and sold must be credited to the special
appropriation trust fund bond proceeds fund. A bond payments account is established in
the special appropriation trust fund bond proceeds fund. All income from investment of the
bond proceeds, as estimated by the commissioner, must be deposited into the account and
is appropriated to the commissioner for the payment of principal and interest on the
appropriation bonds.
new text end

new text begin (c) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 20 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest, and may be includable in or
excludable from the gross income of the owners for federal income tax purposes.
new text end

new text begin (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time
thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter
into agreements and ancillary arrangements relating to the appropriation bonds, including
but not limited to trust indentures, grant agreements, lease or use agreements, operating
agreements, management agreements, liquidity facilities, remarketing or dealer agreements,
letter of credit agreements, insurance policies, guaranty agreements, reimbursement
agreements, indexing agreements, or interest exchange agreements. Any payments made
or received according to the agreement or ancillary arrangement shall be made from or
deposited as provided in the agreement or ancillary arrangement. The determination of the
commissioner included in an interest exchange agreement that the agreement relates to an
appropriation bond shall be conclusive.
new text end

new text begin (e) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with or facilitate the issuance of
appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds, or a separate document authorized by
the order or resolution.
new text end

new text begin (f) The appropriation bonds are not subject to chapter 16C.
new text end

new text begin Subd. 3. new text end

new text begin Form; procedure. new text end

new text begin (a) Appropriation bonds may be issued in the form of bonds,
notes, or other similar instruments, and in the manner provided in section 16A.672. In the
event that any provision of section 16A.672 conflicts with this section, this section shall
control.
new text end

new text begin (b) Every appropriation bond shall include a conspicuous statement of the limitation
established in subdivision 6.
new text end

new text begin (c) Appropriation bonds may be sold at either public or private sale upon such terms as
the commissioner shall determine are not inconsistent with this section and may be sold at
any price or percentage of par value. Any bid received may be rejected.
new text end

new text begin (d) Appropriation bonds must bear interest at a fixed or variable rate.
new text end

new text begin (e) Notwithstanding any other law, appropriation bonds issued under this section shall
be fully negotiable.
new text end

new text begin Subd. 4. new text end

new text begin Refunding bonds. new text end

new text begin The commissioner may issue appropriation bonds for the
purpose of refunding any appropriation bonds then outstanding, including the payment of
any redemption premiums on the bonds, any interest accrued or to accrue to the redemption
date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any
refunding bonds may, in the discretion of the commissioner, be applied to the purchase or
payment at maturity of the appropriation bonds to be refunded, to the redemption of the
outstanding appropriation bonds on any redemption date, or to pay interest on the refunding
bonds and may, pending application, be placed in escrow to be applied to the purchase,
payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be
invested and reinvested in obligations that are authorized investments under section 11A.24.
The income earned or realized on the investment may also be applied to the payment of the
appropriation bonds to be refunded or interest or premiums on the refunded appropriation
bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been
fully satisfied, any balance of the proceeds and any investment income may be returned to
the trust fund or, if applicable, the special appropriation trust fund bond proceeds fund for
use in any lawful manner. All refunding bonds issued under this subdivision must be
prepared, executed, delivered, and secured by appropriations in the same manner as the
appropriation bonds to be refunded.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation bonds as legal investments. new text end

new text begin Any of the following entities may
legally invest any sinking funds, money, or other funds belonging to them or under their
control in any appropriation bonds issued under this section:
new text end

new text begin (1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;
new text end

new text begin (2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and
new text end

new text begin (3) personal representatives, guardians, trustees, and other fiduciaries.
new text end

new text begin Subd. 6. new text end

new text begin No full faith and credit; state not required to make appropriations. new text end

new text begin The
appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
powers of the state are not pledged to the payment of the appropriation bonds or to any
payment that the state agrees to make under this section. Appropriation bonds shall not be
obligations paid directly, in whole or in part, from a tax of statewide application on any
class of property, income, transaction, or privilege. Appropriation bonds shall be payable
in each fiscal year only from amounts that the legislature may appropriate for debt service
for any fiscal year, provided that nothing in this section shall be construed to require the
state to appropriate money sufficient to make debt service payments with respect to the
appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
of final payment of the principal of and interest on the appropriation bonds.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation for debt service and other purposes. new text end

new text begin Notwithstanding section
116P.05, subdivision 2, paragraph (b), the amount needed to pay principal and interest on
appropriation bonds issued under this section and as authorized by other law is appropriated
each fiscal year from legally available amounts in the environment and natural resources
trust fund to the commissioner, subject to repeal, unallotment under section 16A.152, or
cancellation, otherwise pursuant to subdivision 6, for deposit into the bond payments account
established for such purpose in the special appropriation trust fund bond proceeds fund.
Investment income earned on proceeds of the appropriation bonds issued under this section
shall be deposited in the bond payments account and is appropriated to the commissioner.
new text end

new text begin Subd. 8. new text end

new text begin Waiver of immunity. new text end

new text begin The waiver of immunity by the state provided for by
section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
contracts to which the commissioner is a party.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 116P.08, subdivision 1, is amended
to read:

Subdivision 1.

Expenditures.

(a) Money in the trust fund may be spent only for:

(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;

(2) research that contributes to increasing the effectiveness of protecting or managing
the state's environment or natural resources;

(3) collection and analysis of information that assists in developing the state's
environmental and natural resources policies;

(4) enhancement of public education, awareness, and understanding necessary for the
protection, conservation, restoration, and enhancement of air, land, water, forests, fish,
wildlife, and other natural resources;

(5) capital projects for the preservation and protection of unique natural resources;

(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural
resources that otherwise may be substantially impaired or destroyed in any area of the state;

(7) administrative and investment expenses incurred by the State Board of Investment
in investing deposits to the trust fund; deleted text begin and
deleted text end

(8) administrative expenses subject to the limits in section 116P.09 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (9) to pay principal and interest on special appropriation trust fund bonds issued pursuant
to section 16A.969 and other law.
new text end

(b) In making recommendations for expenditures from the trust fund, the commission
shall give priority to funding programs and projects under paragraph (a), clauses (1) and
(6). Any requests for proposals issued by the commission shall clearly indicate these
priorities.

Sec. 3.

Minnesota Statutes 2017 Supplement, section 446A.073, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Supplemental grant award. new text end

new text begin (a) A supplemental grant may not be awarded
under this subdivision unless an amount has been specifically appropriated for this purpose
by an act of the legislature. An appropriation for the purposes of this section generally does
not include supplemental grant awards under this subdivision.
new text end

new text begin (b) For purposes of this subdivision:
new text end

new text begin (1) "total project costs" means total costs associated with building, operating, and
maintaining the wastewater system, including existing wastewater debt service, debt service
costs for the proposed project, and operation and maintenance costs; and
new text end

new text begin (2) "metropolitan area" has the meaning given under section 473.121, subdivision 2.
new text end

new text begin (c) Notwithstanding subdivision 1, if the combined total of grant amounts awarded to a
governmental unit under this section, section 446A.072, and any other state or federal grant
program for a single project is less than an amount listed under clause (1) or (2), the grant
amount awarded under this section must be increased so that the combined total is at least
the greater of:
new text end

new text begin (1) 50 percent of the total project costs; or
new text end

new text begin (2) the amount needed to reduce the annual cost per household for the wastewater system
in the project service area to no more than three times the annual Twin Cities metropolitan
area weighted average retail charge per household as determined in the most recent Survey
of Municipal Residential Wastewater Rates prepared by Metropolitan Council Environmental
Services.
new text end

new text begin (d) A grant amount awarded to a governmental unit under this subdivision in combination
with other state or federal grant programs for a single project may not exceed 75 percent of
total project cost. A governmental unit must pay for at least 25 percent of the total project
cost as a local match.
new text end

Sec. 4.

new text begin [446A.076] ESTIMATED FUNDING NEEDS.
new text end

new text begin By February 1 each year, the Public Facilities Authority must submit to the legislative
committees with jurisdiction over capital investment and environment and natural resources
finance an estimate of the amount necessary to fund grants under sections 446A.072 and
446A.073, subdivisions 4 and 6.
new text end

Sec. 5. new text begin SPECIAL APPROPRIATION TRUST FUND BONDS; AUTHORIZATION; APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Appropriations; general. new text end

new text begin The sums shown in the column under
"Appropriations" are appropriated from the special appropriation trust fund bond proceeds
fund to the state agencies or officials indicated, to be spent for public purposes. Money
appropriated in this section must be spent as authorized by the Minnesota Constitution,
article XI, section 14, Minnesota Statutes, section 16A.969, and unless otherwise specified,
as authorized by and subject to the requirements of Minnesota Statutes, chapter 116P. Unless
otherwise specified, money appropriated in this section is available until June 30, 2022.
Money remaining from an appropriation for a project that is completed or abandoned cancels
to the bond payments account established for such purpose in the special appropriation trust
fund bond proceeds fund, or if not needed for debt service, to the environment and natural
resources trust fund.
new text end

new text begin Subd. 2. new text end

new text begin Legislative findings; appropriations supplement other sources of funding
for projects. new text end

new text begin The legislature finds that the appropriations in this section are consistent with
the requirement in Minnesota Statutes, section 116P.03, that expenditures of money from
the environment and natural resources trust fund supplement traditional sources of money
to pay for expenditures authorized by Minnesota Statutes, section 116P.08, subdivision 1.
Further, the legislature finds that notwithstanding any limitation on use of trust fund money
in Minnesota Statutes, chapter 116P, the appropriations in this section supplement other
sources of money to help pay for projects that are consistent with the purposes of the trust
fund.
new text end

new text begin Subd. 3. new text end

new text begin Bond sale authorization. new text end

new text begin To provide the money appropriated in this section,
and to pay debt service including capitalized interest, costs of issuance, costs of credit
enhancement, or make payments under other agreements entered into under Minnesota
Statutes, section 16A.969, the commissioner of management and budget shall sell and issue
up to $47,000,000, net of costs of issuance, of special appropriation trust fund bonds, in the
manner, upon the terms, and with the effect prescribed by Minnesota Statutes, section
16A.969.
new text end

new text begin Subd. 4. new text end

new text begin Management and budget; bond sale expenses; annual debt service. new text end

new text begin Up to
$1,410,000 is appropriated in fiscal year 2019 and up to $3,760,000 is appropriated each
fiscal year beginning in fiscal year 2020 and through fiscal year 2039, from the environment
and natural resources trust fund to the commissioner of management and budget to pay
principal and interest on appropriation bonds issued under this section, as provided in
Minnesota Statutes, section 16A.969, subdivision 7.
new text end

new text begin Subd. 5. new text end new text begin Public Facilities Authority new text end

new text begin $ new text end

new text begin 47,000,000 new text end

new text begin To the Public Facilities Authority for the
purposes specified in this subdivision.
new text end

new text begin (1) Small Cities Wastewater Infrastructure Grants new text end

new text begin $30,000,000 is for grants to towns and
statutory and home rule charter cities with a
population of fewer than 5,000 under
Minnesota Statutes, section 446A.072.
new text end

new text begin (2) Supplemental Grant Awards new text end

new text begin $17,000,000 is for supplemental grants of up
to $2,000,000 to statutory and home rule cities
with a population of fewer than 5,000 under
Minnesota Statutes, section 446A.073,
subdivision 6.
new text end