HF 1569

1st Division Engrossment - 91st Legislature (2019 - 2020) Posted on 04/11/2019 12:23pm

A bill for an act
relating to water; modifying fees for public water supply; providing for
water-related grants and loans; establishing pilot program for drinking water
protection; appropriating money for water protection, conservation, sustainability,
assessment, and management; amending Minnesota Statutes 2018, sections
144.3831, subdivision 1; 473.504, by adding a subdivision; 473.517, subdivision
1.

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

Section 1.

Minnesota Statutes 2018, section 144.3831, subdivision 1, is amended to read:

Subdivision 1.

Fee setting.

The commissioner of health may assess an annual fee of
deleted text begin $6.36 deleted text end new text begin $9.72 new text end for every service connection to a public water supply that is owned or operated
by a home rule charter city, a statutory city, a city of the first class, or a town. The
commissioner of health may also assess an annual fee for every service connection served
by a water user district defined in section 110A.02.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 2.

Minnesota Statutes 2018, section 473.504, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Inflow and infiltration grants and loans. new text end

new text begin The council may provide grants
and loans to home rule charter and statutory cities in the metropolitan area for the purposes
of city inflow and infiltration prevention programs under section 471.342. The council may
use municipal wastewater charges it collects under section 473.517 or proceeds of bonds
issued under section 473.541 for the purposes of making the grants and loans. The council
must establish procedures and guidelines for making the grants and loans.
new text end

new text begin APPLICATION. new text end

new text begin This section applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 3.

Minnesota Statutes 2018, section 473.517, subdivision 1, is amended to read:

Subdivision 1.

Allocation method.

Except as provided in subdivision 3, the estimated
costs of operation, maintenance, and debt service of the metropolitan disposal system to be
paid by the council in each fiscal year, and the costs of acquisition and betterment of the
system which are to be paid during the year from funds other than bond proceeds, including
all expenses incurred by the council pursuant to sections 473.501 to 473.545, are referred
to in this section as current costs, and shall be allocated among and paid by all local
government units which will discharge sewage, directly or indirectly, into the metropolitan
disposal system during the budget year according to an allocation method determined by
the council. The allocated costs may include an amount for a reserve or contingency fund
and an amount for cash flow management. The cash flow management fund so established
must not exceed five percent of the council's total wastewater services operating budget. new text begin In
addition, the allocated costs may include an amount for the purposes of section 473.504,
subdivision 13, grants and loans to cities for city inflow and infiltration prevention programs.
new text end

new text begin APPLICATION. new text end

new text begin This section applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 4. new text begin WORKING LANDS; PILOT PROGRAM FOR DRINKING WATER
PROTECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Goal. new text end

new text begin It is the goal of the state to develop a market-driven strategy for
enhancing clean water and conservation outcomes by using perennial crops and cover crops
that can yield multiple benefits for water quality, soil health, carbon storage, habitat, and
Minnesota's rural economy.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin (a) In selected areas, to protect sources of drinking water, the Board
of Water and Soil Resources must develop and implement a working lands pilot program
that includes:
new text end

new text begin (1) criteria and a process for selecting drinking water supply management areas that are
expected to result in the greatest water quality improvements and that exhibit readiness to
participate in the program;
new text end

new text begin (2) criteria for screening landowners and operators interested in participating in the
program;
new text end

new text begin (3) outreach to local governments, interest groups, and individual farmers on the economic
and environmental benefits of perennial and cover crops;
new text end

new text begin (4) coordination with soil and water conservation districts, watershed districts, public
water suppliers, cities, counties, and other local government entities to develop and participate
in the program;
new text end

new text begin (5) agronomic assistance to growers in establishing and maintaining the selected crops,
in coordination with the Forever Green Initiative and the University of Minnesota extension
programs;
new text end

new text begin (6) contract terms that provide flexibility for participating growers to establish a variety
of crops, crop rotations, and livestock enterprises that provide a high level of living cover
throughout the year and that can provide economic return;
new text end

new text begin (7) coordination with end users to establish off take agreements and delivery supply
chains for harvested crops;
new text end

new text begin (8) coordination with One Watershed, One Plan and other watershed-scale planning
efforts;
new text end

new text begin (9) coordination with initiatives related to protecting groundwater and drinking water,
soil health, and habitat;
new text end

new text begin (10) evaluation of current conditions and measurable water quality improvements under
the program; and
new text end

new text begin (11) efforts to use federal funds for assistance to establish perennial and cover crops to
the greatest extent possible.
new text end

new text begin (b) The board must coordinate developing the working lands pilot program with
stakeholders and the commissioners of health, natural resources, agriculture, and the Pollution
Control Agency and the University of Minnesota. The board must submit annual progress
reports by January 1 and a final report assessing program results by June 30, 2024. All
reports must be submitted to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over agriculture, natural resources, and
environment policy and finance and to the Clean Water Council.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin $8,500,000 in fiscal year 2020 is appropriated from the general
fund to the Board of Water and Soil Resources to establish the pilot program under this
section. This is a onetime appropriation and is available until June 30, 2024.
new text end

Sec. 5. new text begin APPROPRIATIONS; ASSESSMENT OF EFFECTS OF FLOODING,
DROUGHT, LAND USE, AND POPULATION.
new text end

new text begin (a) In the report required by Minnesota Statutes, section 103A.43, to be submitted on
September 15, 2020, the Environmental Quality Board must include an assessment and
analysis of the way that flooding, drought, land use, and population changes are affecting
groundwater and surface water quality and quantity, biota, hydrology, and infrastructure.
The assessment and analysis must also include an analysis of the effect these phenomena
are likely to have in the future.
new text end

new text begin (b) $150,000 in fiscal year 2020 and $150,000 in fiscal year 2021 are appropriated from
the ....... fund to the Environmental Quality Board for the assessment required under
paragraph (a). The appropriations in this section are onetime and are available until June
30, 2021.
new text end

Sec. 6. new text begin APPROPRIATIONS; PROTECT MINNESOTA'S LAKES FOR THE
FUTURE.
new text end

new text begin $150,000 in fiscal year 2020 and $150,000 in fiscal year 2021 are appropriated from the
....... fund to the Environmental Quality Board, in consultation with the commissioners of
natural resources and the Pollution Control Agency, to analyze the various state programs
that monitor, manage, protect, and enhance lakes in the state and to develop a plan for
identifying which lakes need accelerated lake management. The plan must also specify how
existing programs may need to be altered to ensure that management of Minnesota's lakes
is prioritized appropriately and that the various programs are coordinated effectively. The
Environmental Quality Board must submit the plan developed under this section to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over environment and natural resources policy and finance by November 1,
2020. The report must include recommendations for regulatory, policy, and statutory changes
designed to further the purposes of this section. The appropriations in this section are onetime
and are available until June 30, 2021.
new text end

Sec. 7. new text begin APPROPRIATIONS; DRINKING WATER AND WASTEWATER
INFRASTRUCTURE.
new text end

new text begin (a) $250,000 in fiscal year 2020 and $250,000 in fiscal year 2021 are appropriated from
the ....... fund as follows:
new text end

new text begin (1) $50,000 in fiscal year 2020 and $50,000 in fiscal year 2021 are to the commissioner
of the Pollution Control Agency, in cooperation with the Minnesota Rural Water Association,
to accelerate and enhance cost-effectiveness plan reviews and asset management plans for
wastewater treatment facilities;
new text end

new text begin (2) $25,000 in fiscal year 2020 and $25,000 in fiscal year 2021 are to provide assistance,
including training, tool development, and technical assistance, to the Minnesota Rural Water
Association, the Minnesota Technical Assistance Program at the University of Minnesota,
and cities to encourage innovative best management practices at drinking water, wastewater,
and storm water facilities. Of this amount, $....... is to the commissioner of the Pollution
Control Agency and $....... is to the commissioner of health;
new text end

new text begin (3) $25,000 in fiscal year 2020 and $25,000 in fiscal year 2021 are to assist applicants
for programs administered by the Public Facilities Authority and other communities with
developing and maintaining asset management plans for drinking water, wastewater, and
storm water. Of this amount, $....... is to the commissioner of the Pollution Control Agency
and $....... is to the commissioner of health;
new text end

new text begin (4) $50,000 in fiscal year 2020 and $50,000 in fiscal year 2021 are to the commissioner
of the Pollution Control Agency to assess, encourage, develop, and implement wastewater
infrastructure alternatives to cost-effectively maximize wastewater treatment, including
plan development, regionalization, and cooperative management. The commissioner may
work with the Minnesota Technical Assistance Program at the University of Minnesota to
implement this clause;
new text end

new text begin (5) $25,000 in fiscal year 2020 and $25,000 in fiscal year 2021 are to the commissioner
of the Pollution Control Agency to develop and implement market-based water quality
trading options for wastewater and storm water in several areas;
new text end

new text begin (6) $25,000 in fiscal year 2020 and $25,000 in fiscal year 2021 are to the commissioner
of health to address public health risks from public water supplies, including grants to public
water suppliers to replace lead service lines; and
new text end

new text begin (7) $50,000 in fiscal year 2020 and $50,000 in fiscal year 2021 are to the commissioner
of the Pollution Control Agency, in cooperation with the commissioner of health, to identify
and address areas where subsurface sewage treatment systems pose the most serious risk
to the environment and human health and to provide technical assistance, grants, and other
financial assistance to incentivize upgrades, replacements, and alternatives to improve water
quality.
new text end

new text begin (b) The appropriations in this section are onetime and are available until June 30, 2021.
new text end

Sec. 8. new text begin APPROPRIATIONS; ENSURE CLEAN AND SUSTAINABLE SOURCES
OF GROUNDWATER.
new text end

new text begin (a) $1,200,000 in fiscal year 2020 and $600,000 in fiscal year 2021 are appropriated
from the ....... fund to the commissioner of natural resources to ensure the availability of
clean and sustainable sources of groundwater. Of this amount:
new text end

new text begin (1) $600,000 the first year is for a pilot program to use existing data to perform water
balance analyses and to incorporate those analyses into at least one county geologic atlas
and at least one comprehensive watershed management plan developed under Minnesota
Statutes, section 103B.801;
new text end

new text begin (2) $300,000 the first year and $300,000 the second year are to accelerate designating
additional groundwater management areas under Minnesota Statutes, section 103G.287;
and
new text end

new text begin (3) $300,000 the first year and $300,000 the second year are to develop and implement,
in coordination with other affected state agencies, a water education program that incorporates
existing training materials and provides training on public use of geologic atlases and other
groundwater tools.
new text end

new text begin (b) The appropriations in this section are onetime and are available until June 30, 2021.
new text end

Sec. 9. new text begin APPROPRIATIONS; KEEPING WATER ON THE LAND.
new text end

new text begin (a) $600,000 in fiscal year 2020 and $600,000 in fiscal year 2021 are appropriated from
the ....... fund as follows:
new text end

new text begin (1) $200,000 in fiscal year 2020 and $200,000 in fiscal year 2021 are to the Board of
Water and Soil Resources to develop, in cooperation with the commissioners of agriculture,
natural resources, and the Pollution Control Agency, a statewide action plan for keeping
water on the land to improve water retention, reduce erosion and loading of pollutants
through excess water runoff, and improve agricultural productivity. The plan must:
new text end

new text begin (i) identify the most efficient best management practices for keeping water on the land
and identify incentives to implement the practices at priority locations;
new text end

new text begin (ii) identify methods for encouraging greater state and local government cooperation
with the agricultural industry;
new text end

new text begin (iii) include methods for promoting existing programs and incentives to leverage state
and federal funds to maximize landowner enrollment in conservation programs, including
adoption of best management practices, cover crops, and conservation easements; and
new text end

new text begin (iv) include methods and identify funding needs to promote, encourage, and enhance
watershed-scale pollutant trading and banking programs for storm water and wastewater
using existing authorities.
new text end

new text begin The board must submit the plan to the chairs and ranking minority members of the house
of representatives and senate committees and divisions with jurisdiction over agriculture
and the environment and natural resources by January 15, 2020.
new text end

new text begin (2) $100,000 in fiscal year 2020 and $100,000 in fiscal year 2021 are to accelerate local
implementation of programs funded by the clean water fund by providing additional technical
assistance. Of this amount, $....... is to the Board of Water and Soil Resources and $....... is
to the commissioner of agriculture.
new text end

new text begin (3) $200,000 in fiscal year 2020 and $200,000 in fiscal year 2021 are to the commissioner
of the Pollution Control Agency to accelerate implementation of efficient water quality
trading options.
new text end

new text begin (4) $100,000 in fiscal year 2020 and $100,000 in fiscal year 2021 are to the commissioner
of natural resources to assess the amount of drainage in the state, including tile drainage
and drainage ditch use, and to study the hydrological impacts.
new text end

new text begin (b) The appropriations in this section are onetime and are available until June 30, 2021.
new text end

Sec. 10. new text begin APPROPRIATIONS; WATER CONSERVATION EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Race 2 Reduce. new text end

new text begin (a) For grants to support Race 2 Reduce water conservation
programming in Minnesota schools:
new text end

	new text begin $ new text end	new text begin 215,000 new text end	new text begin ..... new text end	new text begin 2020 new text end
	new text begin $ new text end	new text begin 210,000 new text end	new text begin ..... new text end	new text begin 2021 new text end

new text begin (b) In each fiscal year, $40,000 is for H2O for Life to provide project management and
support, Minnesota GreenCorps member hosting, curriculum development and classroom
instruction assistance, school outreach, and community volunteer training.
new text end

new text begin (c) In each fiscal year, $10,000 is for H2O for Life for a comprehensive project
evaluation.
new text end

new text begin (d) In each fiscal year, $75,000 is for Independent School District No. 624, White Bear
Lake, for Race 2 Reduce curriculum development, teacher in-service training, service
learning activities, and community public awareness events.
new text end

new text begin (e) $15,000 in fiscal year 2020 and $10,000 in fiscal year 2021 are for Independent
School District No. 624, White Bear Lake, to develop a central platform to efficiently
connect volunteers, water education professionals, curricula, and other resources to school
districts across the state.
new text end

new text begin (f) In each fiscal year, $75,000 is for competitive grants to schools to implement the
water conservation curriculum and co-develop the central platform. Minnesota school
districts or charter schools may apply to the commissioner in the form and manner determined
by the commissioner.
new text end

new text begin (g) The base in fiscal year 2022 is zero.
new text end