HF 2710

as introduced - 87th Legislature (2011 - 2012) Posted on 03/13/2012 12:34pm

A bill for an act
relating to health; modifying well regulation to include bored geothermal heat
exchangers; amending Minnesota Statutes 2010, sections 103I.005, subdivisions
2, 8, 12, by adding a subdivision; 103I.101, subdivisions 2, 5; 103I.105;
103I.111, subdivision 8; 103I.205, subdivision 4; 103I.325, subdivision 2;
103I.501; 103I.531, subdivision 5; 103I.535, subdivision 6; 103I.641; 103I.711,
subdivision 1; 103I.715, subdivision 2; Minnesota Statutes 2011 Supplement,
section 103I.208, subdivision 2; proposing coding for new law in Minnesota
Statutes, chapter 103I.

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

Section 1.

Minnesota Statutes 2010, section 103I.005, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Bored geothermal heat exchanger. new text end

new text begin "Bored geothermal heat exchanger"
means an earth-coupled heating or cooling device consisting of a sealed closed-loop
piping system installed in a boring in the ground to transfer heat to or from the surrounding
earth with no discharge.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 2.

Minnesota Statutes 2010, section 103I.005, subdivision 2, is amended to read:

Subd. 2.

Boring.

"Boring" means a hole or excavation that is not used to extract
water and includes exploratory borings, environmental bore holes, deleted text begin vertical deleted text end new text begin bored
geothermal new text end heat exchangers, and elevator deleted text begin shafts deleted text end new text begin borings new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 3.

Minnesota Statutes 2010, section 103I.005, subdivision 8, is amended to read:

Subd. 8.

Environmental bore hole.

"Environmental bore hole" means a hole or
excavation in the ground that penetrates a confining layer or is greater than 25 feet in
depth and enters or goes through a water bearing layer and is used to monitor or measure
physical, chemical, radiological, or biological parameters without extracting water. An
environmental bore hole also includes bore holes constructed for vapor recovery or
venting systems. An environmental bore hole does not include a well, elevator deleted text begin shaft deleted text end new text begin
boring new text end , exploratory boring, or monitoring well.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 4.

Minnesota Statutes 2010, section 103I.005, subdivision 12, is amended to read:

Subd. 12.

Limited well/boring contractor.

"Limited well/boring contractor" means
a person with a limited well/boring contractor's license issued by the commissioner.
Limited well/boring contractor's licenses are issued for constructing, repairing, and sealing
deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchangers; installing, repairing, and modifying pitless
units and pitless adaptors, well casings above the pitless unit or pitless adaptor, well
screens, or well diameters; constructing, repairing, and sealing drive point wells or dug
wells; constructing, repairing, and sealing dewatering wells; sealing wells; and installing
well pumps or pumping equipment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 5.

Minnesota Statutes 2010, section 103I.101, subdivision 2, is amended to read:

Subd. 2.

Duties.

The commissioner shall:

(1) regulate the drilling, construction, modification, repair, and sealing of wells
and borings;

(2) examine and license well contractors; persons constructing, repairing, and
sealing deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchangers; persons modifying or repairing well
casings, well screens, or well diameters; persons constructing, repairing, and sealing drive
point wells or dug wells; persons constructing, repairing, and sealing dewatering wells;
persons sealing wells; persons installing well pumps or pumping equipment; and persons
deleted text begin excavating or drilling holes for the installation of deleted text end new text begin constructing, repairing, and sealing
new text end elevator borings deleted text begin or hydraulic cylinders deleted text end ;

(3) register and examine monitoring well contractors;

(4) license explorers engaged in exploratory boring and examine individuals who
supervise or oversee exploratory boring;

(5) after consultation with the commissioner of natural resources and the Pollution
Control Agency, establish standards for the design, location, construction, repair, and
sealing of wells and borings within the state; and

(6) issue permits for wells, groundwater thermal devices, deleted text begin vertical deleted text end new text begin bored geothermal new text end
heat exchangers, and elevator borings.

Sec. 6.

Minnesota Statutes 2010, section 103I.101, subdivision 5, is amended to read:

Subd. 5.

Commissioner to adopt rules.

The commissioner shall adopt rules
including:

(1) issuance of licenses for:

(i) qualified well contractors, persons modifying or repairing well casings, well
screens, or well diameters;

(ii) persons constructing, repairing, and sealing drive point wells or dug wells;

(iii) persons constructing, repairing, and sealing dewatering wells;

(iv) persons sealing wells;

(v) persons installing well pumps or pumping equipment;

(vi) persons constructing, repairing, and sealing deleted text begin vertical deleted text end new text begin bored geothermal new text end heat
exchangers; and

(vii) persons constructing, repairing, and sealing elevator borings;

(2) issuance of registration for monitoring well contractors;

(3) establishment of conditions for examination and review of applications for
license and registration;

(4) establishment of conditions for revocation and suspension of license and
registration;

(5) establishment of minimum standards for design, location, construction, repair,
and sealing of wells and borings to implement the purpose and intent of this chapter;

(6) establishment of a system for reporting on wells and borings drilled and sealed;

(7) establishment of standards for the construction, maintenance, sealing, and water
quality monitoring of wells in areas of known or suspected contamination;

(8) establishment of wellhead protection measures for wells serving public water
supplies;

(9) establishment of procedures to coordinate collection of well and boring data with
other state and local governmental agencies;

(10) establishment of criteria and procedures for submission of well and boring logs,
formation samples or well or boring cuttings, water samples, or other special information
required for and water resource mapping; and

(11) establishment of minimum standards for design, location, construction,
maintenance, repair, sealing, safety, and resource conservation related to borings,
including exploratory borings as defined in section 103I.005, subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 7.

Minnesota Statutes 2010, section 103I.105, is amended to read:

103I.105 ADVISORY COUNCIL ON WELLS AND BORINGS.

(a) The Advisory Council on Wells and Borings is established as an advisory council
to the commissioner. The advisory council shall consist of 18 voting members. Of the
18 voting members:

(1) one member must be from the Department of Health, appointed by the
commissioner of health;

(2) one member must be from the Department of Natural Resources, appointed
by the commissioner of natural resources;

(3) one member must be a member of the Minnesota Geological Survey of the
University of Minnesota, appointed by the director;

(4) one member must be a responsible individual for a licensed explorer;

(5) one member must be a certified representative of a licensed elevator boring
contractor;

(6) two members must be members of the public who are not connected with the
boring or well drilling industry;

(7) one member must be from the Pollution Control Agency, appointed by the
commissioner of the Pollution Control Agency;

(8) one member must be from the Department of Transportation, appointed by the
commissioner of transportation;

(9) one member must be from the Board of Water and Soil Resources appointed by
its chair;

(10) one member must be a certified representative of a monitoring well contractor;

(11) six members must be residents of this state appointed by the commissioner, who
are certified representatives of licensed well contractors, with not more than two from
the seven-county metropolitan area and at least four from other areas of the state who
represent different geographical regions; and

(12) one member must be a certified representative of a licensed deleted text begin vertical deleted text end new text begin bored
geothermal new text end heat exchanger contractor.

(b) An appointee of the well drilling industry may not serve more than two
consecutive terms.

(c) The appointees to the advisory council from the well drilling industry must:

(1) have been residents of this state for at least three years before appointment; and

(2) have at least five years' experience in the well drilling business.

(d) The terms of the appointed members and the compensation and removal of all
members are governed by section 15.059, except section 15.059, subdivision 5, relating to
expiration of the advisory council does not apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 8.

Minnesota Statutes 2010, section 103I.111, subdivision 8, is amended to read:

Subd. 8.

Municipal regulation of drilling.

A municipality may regulate all drilling,
except well, elevator deleted text begin shaft deleted text end new text begin boring new text end , and exploratory drilling that is subject to the provisions
of this chapter, above, in, through, and adjacent to subsurface areas designated for mined
underground space development and existing mined underground space. The regulations
may prohibit, restrict, control, and require permits for the drilling.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 9.

Minnesota Statutes 2010, section 103I.205, subdivision 4, is amended to read:

Subd. 4.

License required.

(a) Except as provided in paragraph (b), (c), (d), or (e),
section 103I.401, subdivision 2, or section 103I.601, subdivision 2, a person may not
drill, construct, repair, or seal a well or boring unless the person has a well contractor's
license in possession.

(b) A person may construct, repair, and seal a monitoring well if the person:

(1) is a professional engineer licensed under sections 326.02 to 326.15 in the
branches of civil or geological engineering;

(2) is a hydrologist or hydrogeologist certified by the American Institute of
Hydrology;

(3) is a professional geoscientist licensed under sections 326.02 to 326.15;

(4) is a geologist certified by the American Institute of Professional Geologists; or

(5) meets the qualifications established by the commissioner in rule.

A person must register with the commissioner as a monitoring well contractor on
forms provided by the commissioner.

(c) A person may do the following work with a limited well/boring contractor's
license in possession. A separate license is required for each of the six activities:

(1) installing or repairing well screens or pitless units or pitless adaptors and well
casings from the pitless adaptor or pitless unit to the upper termination of the well casing;

(2) constructing, repairing, and sealing drive point wells or dug wells;

(3) installing well pumps or pumping equipment;

(4) sealing wells;

(5) constructing, repairing, or sealing dewatering wells; or

(6) constructing, repairing, or sealing deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchangers.

(d) A person may construct, repair, and seal an elevator boring with an elevator
boring contractor's license.

(e) Notwithstanding other provisions of this chapter requiring a license or
registration, a license or registration is not required for a person who complies with the
other provisions of this chapter if the person is:

(1) an individual who constructs a well on land that is owned or leased by the
individual and is used by the individual for farming or agricultural purposes or as the
individual's place of abode; or

(2) an individual who performs labor or services for a contractor licensed or
registered under the provisions of this chapter in connection with the construction, sealing,
or repair of a well or boring at the direction and under the personal supervision of a
contractor licensed or registered under the provisions of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 10.

Minnesota Statutes 2011 Supplement, section 103I.208, subdivision 2, is
amended to read:

Subd. 2.

Permit fee.

The permit fee to be paid by a property owner is:

(1) for a water supply well that is not in use under a maintenance permit, $175
annually;

(2) for construction of a monitoring well, $235, which includes the state core
function fee;

(3) for a monitoring well that is unsealed under a maintenance permit, $175 annually;

(4) for a monitoring well owned by a federal agency, state agency, or local unit of
government that is unsealed under a maintenance permit, $50 annually. "Local unit of
government" means a statutory or home rule charter city, town, county, or soil and water
conservation district, watershed district, an organization formed for the joint exercise of
powers under section 471.59, a board of health or community health board, or other
special purpose district or authority with local jurisdiction in water and related land
resources management;

(5) for monitoring wells used as a leak detection device at a single motor fuel retail
outlet, a single petroleum bulk storage site excluding tank farms, or a single agricultural
chemical facility site, the construction permit fee is $235, which includes the state core
function fee, per site regardless of the number of wells constructed on the site, and
the annual fee for a maintenance permit for unsealed monitoring wells is $175 per site
regardless of the number of monitoring wells located on site;

(6) for a groundwater thermal exchange device, in addition to the notification fee for
water supply wells, $235, which includes the state core function fee;

(7) for a deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchanger with less than ten tons of
heating/cooling capacity, $235;

(8) for a deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchanger with ten to 50 tons of
heating/cooling capacity, $475;

(9) for a deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchanger with greater than 50 tons of
heating/cooling capacity, $700;

(10) for a dewatering well that is unsealed under a maintenance permit, $175
annually for each dewatering well, except a dewatering project comprising more than five
dewatering wells shall be issued a single permit for $875 annually for dewatering wells
recorded on the permit; and

(11) for an elevator boring, $235 for each boring.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 11.

Minnesota Statutes 2010, section 103I.325, subdivision 2, is amended to read:

Subd. 2.

Liability after sealing.

new text begin (a) new text end The owner of a well or boring is not liable for
contamination of groundwater from the well or boring that occurs after the well or boring
has been sealed by a licensed contractor in compliance with this chapter if a report of
sealing has been filed with the commissioner of health by the contractor who performed
the work, and if the owner has not disturbed or disrupted the sealed well or boring.

new text begin (b) The licensed contractor who seals a well or boring in compliance with this
chapter and files a report with the commissioner of health is not liable for contamination of
groundwater from the well or boring that occurs after the well or boring has been sealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 12.

new text begin [103I.327] SEALED WELLS.
new text end

new text begin After a well or boring has been sealed in compliance with this chapter and the
licensed contractor who performed the work files a report of the sealing with the
commissioner, the commissioner may not order the contractor to reseal the well or
otherwise perform work on the well.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 13.

Minnesota Statutes 2010, section 103I.501, is amended to read:

103I.501 LICENSING AND REGULATION OF WELLS AND BORINGS.

(a) The commissioner shall regulate and license:

(1) drilling, constructing, and repair of wells;

(2) sealing of wells;

(3) installing of well pumps and pumping equipment;

(4) excavating, drilling, repairing, and sealing of elevator borings;

(5) construction, repair, and sealing of environmental bore holes; and

(6) construction, repair, and sealing of deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchangers.

(b) The commissioner shall examine and license well contractors, limited
well/boring contractors, and elevator boring contractors, and examine and register
monitoring well contractors.

(c) The commissioner shall license explorers engaged in exploratory boring and
shall examine persons who supervise or oversee exploratory boring.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 14.

Minnesota Statutes 2010, section 103I.531, subdivision 5, is amended to read:

Subd. 5.

Bond.

(a) As a condition of being issued a limited well/boring contractor's
license for constructing, repairing, and sealing drive point wells or dug wells, sealing
wells or borings, constructing, repairing, and sealing dewatering wells, or constructing,
repairing, and sealing deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchangers, the applicant must
submit a corporate surety bond for $10,000 approved by the commissioner. As a condition
of being issued a limited well/boring contractor's license for installing or repairing well
screens or pitless units or pitless adaptors and well casings from the pitless adaptor
or pitless unit to the upper termination of the well casing, or installing well pumps or
pumping equipment, the applicant must submit a corporate surety bond for $2,000
approved by the commissioner. The bonds required in this paragraph must be conditioned
to pay the state on performance of work in this state that is not in compliance with this
chapter or rules adopted under this chapter. The bonds are in lieu of other license bonds
required by a political subdivision of the state.

(b) From proceeds of a bond required in paragraph (a), the commissioner may
compensate persons injured or suffering financial loss because of a failure of the applicant
to perform work or duties in compliance with this chapter or rules adopted under this
chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 15.

Minnesota Statutes 2010, section 103I.535, subdivision 6, is amended to read:

Subd. 6.

License fee.

The fee for an elevator deleted text begin shaft deleted text end new text begin boring new text end contractor's license is $75.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 16.

Minnesota Statutes 2010, section 103I.641, is amended to read:

103I.641 deleted text begin VERTICAL deleted text end new text begin BORED GEOTHERMAL new text end HEAT EXCHANGERS.

Subdivision 1.

Requirements.

A person may not drill or construct an excavation
used to install a deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchanger unless the person is a limited
well/boring contractor licensed for constructing, repairing, and sealing deleted text begin vertical deleted text end new text begin bored
geothermal new text end heat exchangers or a well contractor.

Subd. 2.

Regulations for deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchangers.

deleted text begin Vertical deleted text end new text begin
Bored geothermal new text end heat exchangers must be constructed, maintained, and sealed under the
provisions of this chapter.

Subd. 3.

Permit required.

(a) A deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchanger
may not be installed without first obtaining a permit for the deleted text begin vertical deleted text end new text begin bored geothermal new text end
heat exchanger from the commissioner. A limited well/boring contractor licensed for
constructing, repairing, and sealing deleted text begin vertical deleted text end new text begin bored geothermal new text end heat exchangers or a well
contractor must apply for the permit on forms provided by the commissioner and must
pay the permit fee.

(b) As a condition of the permit, the owner of the property where the deleted text begin vertical deleted text end new text begin
bored geothermal new text end heat exchanger is to be installed must agree to allow inspection by the
commissioner during regular working hours of Department of Health inspectors.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 17.

Minnesota Statutes 2010, section 103I.711, subdivision 1, is amended to read:

Subdivision 1.

Impoundment.

The commissioner may apply to district court for a
warrant authorizing seizure and impoundment of all drilling machines or hoists owned or
used by a person. The court shall issue an impoundment order upon the commissioner's
showing that a person is constructing, repairing, or sealing wells or borings or installing
pumps or pumping equipment deleted text begin or excavating holes for installing elevator shafts deleted text end without a
license or registration as required under this chapter. A sheriff on receipt of the warrant
must seize and impound all drilling machines and hoists owned or used by the person. A
person from whom equipment is seized under this subdivision may file an action in district
court for the purpose of establishing that the equipment was wrongfully seized.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 18.

Minnesota Statutes 2010, section 103I.715, subdivision 2, is amended to read:

Subd. 2.

Gross misdemeanors.

A person is guilty of a gross misdemeanor who:

(1) willfully violates a provision of this chapter or order of the commissioner;

(2) engages in the business of drilling or making wells new text begin or borings new text end , sealing wells new text begin
or borings new text end , new text begin or new text end installing pumps or pumping equipment deleted text begin , or constructing elevator shafts deleted text end
without a license required by this chapter; or

(3) engages in the business of exploratory boring without an exploratory borer's
license under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end