1.1                          A bill for an act 
  1.2             relating to natural resources; water; modifying 
  1.3             wetland protection and management; authorizing 
  1.4             rulemaking; appropriating money; amending Minnesota 
  1.5             Statutes 1994, sections 84.035, subdivisions 5 and 6; 
  1.6             103B.3355; 103E.701, subdivision 6; 103F.612, 
  1.7             subdivisions 2, 3, 5, 6, and 7; 103G.005, subdivision 
  1.8             10a, and by adding subdivisions; 103G.127; 103G.222; 
  1.9             103G.2241; 103G.2242, subdivisions 1, 2, 4, 6, 7, 9, 
  1.10            and 12; 103G.237, subdivision 4, and by adding a 
  1.11            subdivision; 103G.2373; and 115.03, by adding a 
  1.12            subdivision; proposing coding for new law in Minnesota 
  1.13            Statutes, chapter 103G; repealing Minnesota Statutes 
  1.14            1994, section 103G.2242, subdivision 13. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1994, section 84.035, 
  1.17  subdivision 5, is amended to read: 
  1.18     Subd. 5.  [ACTIVITIES IN PEATLAND SCIENTIFIC AND NATURAL 
  1.19  AREAS.] Areas designated in subdivision 4 as peatland scientific 
  1.20  and natural areas are subject to the following conditions: 
  1.21     (a) Except as provided in paragraph (b), all restrictions 
  1.22  otherwise applicable to scientific and natural areas designated 
  1.23  under section 86A.05, subdivision 5, apply to the surface use 
  1.24  and to any use of the mineral estate which would significantly 
  1.25  modify or alter the peatland water levels or flows, peatland 
  1.26  water chemistry, plant or animal species or communities, or 
  1.27  other natural features of the peatland scientific and natural 
  1.28  areas, including, but not limited to, the following prohibitions:
  1.29     (1) construction of any new public drainage systems after 
  1.30  the effective date of Laws 1991, chapter 354, or improvement or 
  2.1   repair to a public drainage system in existence on the effective 
  2.2   date of Laws 1991, chapter 354, under authority of chapter 103E, 
  2.3   or any other alteration of surface water or ground water levels 
  2.4   or flows unless specifically permitted under paragraph (b), 
  2.5   clause (5) or (6); 
  2.6      (2) removal of peat, sand, gravel, or other industrial 
  2.7   minerals; 
  2.8      (3) exploratory boring or other exploration or removal of 
  2.9   oil, natural gas, radioactive materials or metallic minerals 
  2.10  which would significantly modify or alter the peatland water 
  2.11  levels or flows, peatland water chemistry, plant or animal 
  2.12  species or communities, or natural features of the peatland 
  2.13  scientific and natural areas, except in the event of a national 
  2.14  emergency declared by Congress; 
  2.15     (4) commercial timber harvesting; 
  2.16     (5) construction of new corridors of disturbance, of the 
  2.17  kind defined in subdivision 3, after June 5, 1991; and 
  2.18     (6) ditching, draining, filling, or any other activities 
  2.19  which modify or alter the peatland water levels or flows, 
  2.20  peatland water chemistry, plant or animal species or 
  2.21  communities, or other natural features of the peatland 
  2.22  scientific and natural areas. 
  2.23     (b) The following activities are allowed: 
  2.24     (1) recreational activities, including hunting, fishing, 
  2.25  trapping, cross-country skiing, snowshoeing, nature observation, 
  2.26  or other recreational activities permitted in the management 
  2.27  plan approved by the commissioner; 
  2.28     (2) scientific and educational work and research; 
  2.29     (3) maintenance of corridors of disturbance, including 
  2.30  survey lines and preparation of winter roads, consistent with 
  2.31  protection of the peatland ecosystem; 
  2.32     (4) use of corridors of disturbance unless limited by a 
  2.33  management plan adopted by the commissioner under subdivision 6; 
  2.34     (5) improvements to a public drainage system in existence 
  2.35  on the effective date of Laws 1991, chapter 354, only when it is 
  2.36  for the protection and maintenance of the ecological integrity 
  3.1   of the peatland scientific and natural area and when included in 
  3.2   a management plan adopted by the commissioner under subdivision 
  3.3   6; 
  3.4      (6) repairs to a public drainage system in existence on the 
  3.5   effective date of Laws 1991, chapter 354, which crosses a 
  3.6   peatland scientific and natural area and is used for the 
  3.7   purposes of providing a drainage outlet for lands outside of the 
  3.8   peatland scientific and natural area, provided that there are no 
  3.9   other feasible and prudent alternative means of providing the 
  3.10  drainage outlet.  The commissioner shall cooperate with the 
  3.11  ditch authority in the determination of any feasible and prudent 
  3.12  alternatives.  No repairs which would significantly modify or 
  3.13  alter the peatland water levels or flows, peatland water 
  3.14  chemistry, plant or animal species or communities, or other 
  3.15  natural features of the peatland scientific and natural areas 
  3.16  shall be made unless approved by the commissioner; 
  3.17     (7) motorized uses that are engaged in, on corridors a 
  3.18  corridor of disturbance, if the corridor existed on or before 
  3.19  the effective date of Laws 1991, chapter 354 January 1, 1992, 
  3.20  provided that recreational motorized users may occur only when 
  3.21  the substrate is frozen, or the corridor is snow packed, subject 
  3.22  to a management plan developed in accordance with subdivision 6; 
  3.23  and 
  3.24     (8) control of forest insects, disease, and wildfires, as 
  3.25  described in a management plan adopted by the commissioner under 
  3.26  subdivision 6; and 
  3.27     (9) geological and geophysical surveys which would not 
  3.28  significantly modify or alter the peatland water levels or 
  3.29  flows, peatland water chemistry, plant or animal species or 
  3.30  communities, or other natural features of the peatland 
  3.31  scientific and natural areas. 
  3.32     Sec. 2.  Minnesota Statutes 1994, section 84.035, 
  3.33  subdivision 6, is amended to read: 
  3.34     Subd. 6.  [MANAGEMENT PLANS.] The commissioner shall 
  3.35  develop in consultation with the affected local government unit 
  3.36  a management plan for each peatland scientific and natural area 
  4.1   designated under section 84.036 in a manner prescribed by 
  4.2   section 86A.09. 
  4.3      The management plan shall address recreational trails.  In 
  4.4   those peatland scientific and natural areas where no corridor of 
  4.5   disturbance was used as a recreational trail on or before 
  4.6   January 1, 1992, the plan may permit only one corridor of 
  4.7   disturbance, in each peatland scientific and natural area, to be 
  4.8   used as a recreational motorized trail. 
  4.9      Sec. 3.  Minnesota Statutes 1994, section 103B.3355, is 
  4.10  amended to read: 
  4.11     103B.3355 [PUBLIC VALUE CRITERIA FOR WETLANDS WETLAND 
  4.12  FUNCTIONS FOR DETERMINING PUBLIC VALUES.] 
  4.13     (a) The board of water and soil resources, in consultation 
  4.14  with the commissioner of natural resources, shall adopt rules 
  4.15  establishing criteria to determine The public value values of 
  4.16  wetlands.  The rules must consider the public benefit and use of 
  4.17  the wetlands and include must be determined based upon the 
  4.18  functions of wetlands for:  
  4.19     (1) criteria to determine the benefits of wetlands for 
  4.20  water quality, including filtering of pollutants to surface and 
  4.21  groundwater, utilization of nutrients that would otherwise 
  4.22  pollute public waters, trapping of sediments, shoreline 
  4.23  protection, and utilization of the wetland as a recharge area 
  4.24  for groundwater; 
  4.25     (2) criteria to determine the benefits of wetlands for 
  4.26  floodwater and stormwater retention, including the potential for 
  4.27  flooding in the watershed, the value of property subject to 
  4.28  flooding, and the reduction in potential flooding by the 
  4.29  wetland; 
  4.30     (3) criteria to determine the benefits of wetlands for 
  4.31  public recreation and education, including wildlife habitat, 
  4.32  hunting and fishing areas, wildlife breeding areas, wildlife 
  4.33  viewing areas, aesthetically enhanced areas, and nature areas; 
  4.34     (4) criteria to determine the benefits of wetlands for 
  4.35  commercial uses, including wild rice and cranberry growing and 
  4.36  harvesting and aquaculture; and 
  5.1      (5) fish, wildlife, native plant habitats; and 
  5.2      (6) low-flow augmentation; and 
  5.3      (7) criteria to determine the benefits of wetlands for 
  5.4   other public uses.  
  5.5      (b) The board of water and soil resources, in consultation 
  5.6   with the commissioners of natural resources and agriculture and 
  5.7   local government units, shall adopt rules establishing: 
  5.8      (1) scientific methodologies for determining the functions 
  5.9   of wetlands; and 
  5.10     (2) criteria for determining the resulting public values of 
  5.11  wetlands. 
  5.12     (c) The methodologies and criteria established under this 
  5.13  section or other methodologies and criteria that include the 
  5.14  functions in paragraph (a) and are approved by the board, in 
  5.15  consultation with the commissioners of natural resources and 
  5.16  agriculture and local government units, must be used to 
  5.17  determine the functions and resulting public value values of 
  5.18  wetlands in the state.  The functions listed in paragraph (a) 
  5.19  are not listed in order of priority. 
  5.20     (d) Public value criteria established or approved by the 
  5.21  board under this section do not apply in areas subject to local 
  5.22  comprehensive wetland protection and management plans 
  5.23  established under section 103G.2243. 
  5.24     (e) The board of water and soil resources, in consultation 
  5.25  with the commissioner commissioners of natural resources, shall 
  5.26  also use the criteria in identifying and agriculture and local 
  5.27  government units, may identify regions of the state where 
  5.28  preservation, enhancement, restoration, and establishment of 
  5.29  wetlands would have high public value.  Before the criteria are 
  5.30  adopted, The board, in consultation with the commissioner 
  5.31  commissioners, may identify high priority wetland regions using 
  5.32  available information relating to the factors listed in 
  5.33  paragraph (a).  The board shall notify local units of government 
  5.34  with water planning authority of these high priority regions. 
  5.35     Sec. 4.  Minnesota Statutes 1994, section 103E.701, 
  5.36  subdivision 6, is amended to read: 
  6.1      Subd. 6.  [WETLAND RESTORATION AND MITIGATION.] Repair of a 
  6.2   drainage system may include the preservation, restoration, or 
  6.3   enhancement of wetlands; wetland replacement under section 
  6.4   103G.222; and the realignment of a drainage system to prevent 
  6.5   drainage of a wetland. 
  6.6      Sec. 5.  Minnesota Statutes 1994, section 103F.612, 
  6.7   subdivision 2, is amended to read: 
  6.8      Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
  6.9   the county where a wetland is located for designation of a 
  6.10  wetland preservation area in a high priority wetland area 
  6.11  identified in a comprehensive local water plan, as defined in 
  6.12  section 103B.3363, subdivision 3, and located within a high 
  6.13  priority wetland region designated by the board of water and 
  6.14  soil resources, if the county chooses to accept wetland 
  6.15  preservation area applications.  The application must be made on 
  6.16  forms provided by the board.  If a wetland is located in more 
  6.17  than one county, the application must be submitted to the county 
  6.18  where the majority of the wetland is located.  
  6.19     (b) The application must contain at least the following 
  6.20  information and other information the board of soil and water 
  6.21  resources requires:  
  6.22     (1) legal description of the area to be approved, which 
  6.23  must include an upland strip at least 16-1/2 feet in width 
  6.24  around the perimeter of wetlands within the area and may include 
  6.25  total upland area of up to four acres for each acre of wetland; 
  6.26     (2) parcel identification numbers where designated by the 
  6.27  county auditor; 
  6.28     (3) name and address of the owner; 
  6.29     (4) a witnessed signature of the owner covenanting that the 
  6.30  land will be preserved as a wetland and will only be used in 
  6.31  accordance with conditions prescribed by the board of water and 
  6.32  soil resources; and 
  6.33     (5) a statement that the restrictive covenant will be 
  6.34  binding on the owner and the owner's successors or assigns, and 
  6.35  will run with the land.  
  6.36     (c) The upland strip required in paragraph (b), clause (1), 
  7.1   must be planted with permanent vegetation other than a noxious 
  7.2   weed. 
  7.3      (d) For registered property, the owner shall submit the 
  7.4   owner's duplicate certificate of title with the application.  
  7.5      Sec. 6.  Minnesota Statutes 1994, section 103F.612, 
  7.6   subdivision 3, is amended to read: 
  7.7      Subd. 3.  [REVIEW AND NOTICE.] Upon receipt of an 
  7.8   application, the county shall determine if all material required 
  7.9   by subdivision 2 has been submitted and, if so, shall determine 
  7.10  that the application is complete.  The term "date of application"
  7.11  means the date the application is determined to be complete by 
  7.12  the county.  The county shall send a copy of the application to 
  7.13  the county assessor, the regional development commission, where 
  7.14  applicable, the board of water and soil resources, and the soil 
  7.15  and water conservation district where the land is located.  The 
  7.16  soil and water conservation district shall prepare an advisory 
  7.17  statement of existing and potential preservation problems or 
  7.18  conflicts and send the statement to the owner of record and to 
  7.19  the county.  The county shall notify the landowner of the 
  7.20  acceptance or denial of the application within 60 days from the 
  7.21  date of the application. 
  7.22     Sec. 7.  Minnesota Statutes 1994, section 103F.612, 
  7.23  subdivision 5, is amended to read: 
  7.24     Subd. 5.  [COMMENCEMENT OF WETLAND PRESERVATION AREA.] The 
  7.25  wetland is a wetland preservation area commencing 30 days from 
  7.26  the date the county determines notifies the landowner of 
  7.27  acceptance of the application is complete under subdivision 3.  
  7.28     Sec. 8.  Minnesota Statutes 1994, section 103F.612, 
  7.29  subdivision 6, is amended to read: 
  7.30     Subd. 6.  [FEE.] The county may require an application fee, 
  7.31  not to exceed $50 to defray administrative costs of the program. 
  7.32     Sec. 9.  Minnesota Statutes 1994, section 103F.612, 
  7.33  subdivision 7, is amended to read: 
  7.34     Subd. 7.  [MAPS.] The board of water and soil resources 
  7.35  county shall maintain wetland preservation area maps 
  7.36  illustrating land covenanted as wetland preservation areas.  
  8.1      Sec. 10.  Minnesota Statutes 1994, section 103G.005, is 
  8.2   amended by adding a subdivision to read: 
  8.3      Subd. 2a.  [AGRICULTURAL LAND.] "Agricultural land" means:  
  8.4   land used for horticultural, row, close grown, pasture, and 
  8.5   hayland crops; growing nursery stocks; animal feedlots; farm 
  8.6   yards; associated building sites; and public and private 
  8.7   drainage systems and field roads located on any of the foregoing.
  8.8      Sec. 11.  Minnesota Statutes 1994, section 103G.005, is 
  8.9   amended by adding a subdivision to read: 
  8.10     Subd. 10a.  [50 TO 80 PERCENT AREA.] "50 to 80 percent 
  8.11  area" means a county or watershed with at least 50 but less than 
  8.12  80 percent of the presettlement wetland acreage intact. 
  8.13     Sec. 12.  Minnesota Statutes 1994, section 103G.005, is 
  8.14  amended by adding a subdivision to read: 
  8.15     Subd. 10b.  [GREATER THAN 80 PERCENT AREA.] "Greater than 
  8.16  80 percent area" means a county or watershed where 80 percent or 
  8.17  more of the presettlement wetland acreage is intact and: 
  8.18     (1) ten percent or more of the current total land area is 
  8.19  wetland; or 
  8.20     (2) 50 percent or more of the current total land area is 
  8.21  state or federal land. 
  8.22     Sec. 13.  Minnesota Statutes 1994, section 103G.005, is 
  8.23  amended by adding a subdivision to read: 
  8.24     Subd. 10c.  [HAYLAND.] "Hayland" means an area that was 
  8.25  mechanically harvested or that was planted with annually seeded 
  8.26  crops in a crop rotation seeding of grasses or legumes in six of 
  8.27  the last ten years prior to January 1, 1991. 
  8.28     Sec. 14.  Minnesota Statutes 1994, section 103G.005, is 
  8.29  amended by adding a subdivision to read: 
  8.30     Subd. 10d.  [LESS THAN 50 PERCENT AREA.] "Less than 50 
  8.31  percent area" means a county or watershed with less than 50 
  8.32  percent of the presettlement wetland acreage intact or any 
  8.33  county or watershed not defined as a "greater than 80 percent 
  8.34  area" or "50 to 80 percent area." 
  8.35     Sec. 15.  Minnesota Statutes 1994, section 103G.005, 
  8.36  subdivision 10a, is amended to read: 
  9.1      Subd. 10a 10e.  [LOCAL GOVERNMENT UNIT.] "Local government 
  9.2   unit" means: 
  9.3      (1) outside of the seven-county metropolitan area, a city 
  9.4   council or county board of commissioners or their delegate; and 
  9.5      (2) in the seven-county metropolitan area, a city council, 
  9.6   a town board under section 368.01, or a watershed management 
  9.7   organization under section 103B.211, or their delegate; and 
  9.8      (3) on state land, the agency with administrative 
  9.9   responsibility for the land. 
  9.10     Sec. 16.  Minnesota Statutes 1994, section 103G.005, is 
  9.11  amended by adding a subdivision to read: 
  9.12     Subd. 14a.  [PASTURE.] "Pasture" means an area that was 
  9.13  grazed by domesticated livestock or that was planted with 
  9.14  annually seeded crops in a crop rotation seeding of grasses or 
  9.15  legumes of the last years prior to January 1, 1991. 
  9.16     Sec. 17.  Minnesota Statutes 1994, section 103G.005, is 
  9.17  amended by adding a subdivision to read: 
  9.18     Subd. 14c.  [PRESETTLEMENT WETLAND.] "Presettlement wetland"
  9.19  means a wetland or public waters wetland that existed in this 
  9.20  state at the time of statehood in 1858. 
  9.21     Sec. 18.  Minnesota Statutes 1994, section 103G.005, is 
  9.22  amended by adding a subdivision to read: 
  9.23     Subd. 14d.  [PROJECT.] "Project" means a specific plan, 
  9.24  contiguous activity, proposal, or design necessary to accomplish 
  9.25  a goal as defined by the local government unit.  As used in this 
  9.26  chapter, a project may not be split into components or phases 
  9.27  for the sole purpose of gaining additional exemptions. 
  9.28     Sec. 19.  Minnesota Statutes 1994, section 103G.005, is 
  9.29  amended by adding a subdivision to read: 
  9.30     Subd. 15a.  [SHORELAND WETLAND PROTECTION ZONE.] "Shoreland 
  9.31  wetland protection zone" means: 
  9.32     (1) for local government units that have a shoreland 
  9.33  management ordinance approved under sections 103F.201 to 
  9.34  103F.221, the shoreland wetland protection zone is: 
  9.35     (i) 1,000 feet from the ordinary high water level of a 
  9.36  waterbasin that is a public water identified in the shoreland 
 10.1   management ordinance or the shoreland area approved by the 
 10.2   commissioner as provided in the shoreland management rules 
 10.3   adopted under section 103F.211, whichever is less; or 
 10.4      (ii) 300 feet from the ordinary high water level of a 
 10.5   watercourse identified in the shoreland management ordinance or 
 10.6   the shoreland area approved by the commissioner as provided in 
 10.7   the shoreland management rules adopted under section 103F.211, 
 10.8   whichever is less; and 
 10.9      (2) for local government units that do not have a shoreland 
 10.10  management ordinance approved under sections 103F.201 to 
 10.11  103F.221, the shoreland wetland protection zone is: 
 10.12     (i) 1,000 feet from the ordinary high water level of a 
 10.13  waterbasin that is a public water that is at least ten acres in 
 10.14  size within municipalities and at least 25 acres in size in 
 10.15  unincorporated areas; or 
 10.16     (ii) 300 feet from the ordinary high water level of a 
 10.17  watercourse identified by the public waters inventory under 
 10.18  section 103G.201. 
 10.19     Sec. 20.  Minnesota Statutes 1994, section 103G.005, is 
 10.20  amended by adding a subdivision to read: 
 10.21     Subd. 15b.  [SILVICULTURE.] "Silviculture" means the 
 10.22  management of forest trees. 
 10.23     Sec. 21.  Minnesota Statutes 1994, section 103G.005, is 
 10.24  amended by adding a subdivision to read: 
 10.25     Subd. 15c.  [UTILITY.] "Utility" means a sanitary sewer, 
 10.26  storm sewer, potable water distribution, and transmission, 
 10.27  distribution, or furnishing, at wholesale or retail, of natural 
 10.28  or manufactured gas, electricity, telephone, or radio service or 
 10.29  communications. 
 10.30     Sec. 22.  Minnesota Statutes 1994, section 103G.005, is 
 10.31  amended by adding a subdivision to read: 
 10.32     Subd. 17b.  [WETLAND TYPE.] "Wetland type" means a wetland 
 10.33  type classified according to Wetlands of the United States, U.S. 
 10.34  Fish and Wildlife Service Circular 39 (1971 edition), as 
 10.35  summarized in this subdivision. 
 10.36     (1) "Type 1 wetlands" are seasonally flooded basins or 
 11.1   flats in which soil is covered with water or is waterlogged 
 11.2   during variable seasonal periods but usually is well-drained 
 11.3   during much of the growing season.  Type 1 wetlands are located 
 11.4   in depressions and in overflow bottomlands along watercourses, 
 11.5   and in which vegetation varies greatly according to season and 
 11.6   duration of flooding and includes bottomland hardwoods as well 
 11.7   as herbaceous growths. 
 11.8      (2) "Type 2 wetlands" are inland fresh meadows in which 
 11.9   soil is usually without standing water during most of the 
 11.10  growing season but is waterlogged within at least a few inches 
 11.11  of surface.  Vegetation includes grasses, sedges, rushes, and 
 11.12  various broad-leafed plants.  Meadows may fill shallow basins, 
 11.13  sloughs, or farmland sags, or these meadows may border shallow 
 11.14  marshes on the landward side. 
 11.15     (3) "Type 3 wetlands" are inland shallow fresh marshes in 
 11.16  which soil is usually waterlogged early during a growing season 
 11.17  and often covered with as much as six inches or more of water.  
 11.18  Vegetation includes grasses, bulrushes, spikerushes, and various 
 11.19  other marsh plants such as cattails, arrowheads, pickerelweed, 
 11.20  and smartweeds.  These marshes may nearly fill shallow lake 
 11.21  basins or sloughs, or may border deep marshes on the landward 
 11.22  side and are also common as seep areas on irrigated lands. 
 11.23     (4) "Type 4 wetlands" are inland deep fresh marshes in 
 11.24  which soil is usually covered with six inches to three feet or 
 11.25  more of water during the growing season.  Vegetation includes 
 11.26  cattails, reeds, bulrushes, spikerushes, and wild rice.  In open 
 11.27  areas, pondweeds, naiads, coontail, water milfoils, waterweeds, 
 11.28  duckweeds, waterlilies, or spatterdocks may occur.  These deep 
 11.29  marshes may completely fill shallow lake basins, potholes, 
 11.30  limestone sinks, and sloughs, or they may border open water in 
 11.31  such depressions. 
 11.32     (5) "Type 5 wetlands" are inland open fresh water, shallow 
 11.33  ponds, and reservoirs in which water is usually less than ten 
 11.34  feet deep and is fringed by a border of emergent vegetation 
 11.35  similar to open areas of type 4 wetland. 
 11.36     (6) "Type 6 wetlands" are shrub swamps in which soil is 
 12.1   usually waterlogged during growing season and is often covered 
 12.2   with as much as six inches of water.  Vegetation includes 
 12.3   alders, willows, buttonbush, dogwoods, and swamp-privet.  This 
 12.4   type occurs mostly along sluggish streams and occasionally on 
 12.5   flood plains. 
 12.6      (7) "Type 7 wetlands" are wooded swamps in which soil is 
 12.7   waterlogged at least to within a few inches of the surface 
 12.8   during growing season and is often covered with as much as one 
 12.9   foot of water.  This type occurs mostly along sluggish streams, 
 12.10  on flood plains, on flat uplands, and in shallow basins.  Trees 
 12.11  include tamarack, arborvitae, black spruce, balsam, red maple, 
 12.12  and black ash.  Northern evergreen swamps usually have a thick 
 12.13  ground cover of mosses.  Deciduous swamps frequently support 
 12.14  beds of duckweeds and smartweeds. 
 12.15     (8) "Type 8 wetlands" are bogs in which soil is usually 
 12.16  waterlogged and supports a spongy covering of mosses.  This type 
 12.17  occurs mostly in shallow basins, on flat uplands, and along 
 12.18  sluggish streams.  Vegetation is woody or herbaceous or both.  
 12.19  Typical plants are heath shrubs, sphagnum moss, and sedges.  In 
 12.20  the north, leatherleaf, Labrador-tea, cranberries, carex, and 
 12.21  cottongrass are often present.  Scattered, often stunted, black 
 12.22  spruce and tamarack may occur. 
 12.23     Sec. 23.  Minnesota Statutes 1994, section 103G.127, is 
 12.24  amended to read: 
 12.25     103G.127 [PERMIT PROGRAM UNDER SECTION 404 OF THE FEDERAL 
 12.26  CLEAN WATER ACT.] 
 12.27     Notwithstanding any other law to the contrary, the 
 12.28  commissioner, with the concurrence of the board of water and 
 12.29  soil resources and the commissioner of agriculture, may adopt 
 12.30  rules establishing a permit program for regulating the discharge 
 12.31  of dredged and fill material into the waters of the state as 
 12.32  necessary to obtain approval from the United States 
 12.33  Environmental Protection Agency to administer the permit program 
 12.34  under section 404 of the federal Clean Water Act, United States 
 12.35  Code, title 33, section 1344.  The rules may not be more 
 12.36  restrictive than the program under section 404, or state law, if 
 13.1   it is more restrictive than the federal program. 
 13.2      Sec. 24.  Minnesota Statutes 1994, section 103G.222, is 
 13.3   amended to read: 
 13.4      103G.222 [REPLACEMENT OF WETLANDS.] 
 13.5      Subdivision 1.  [REQUIREMENTS.] (a) After the effective 
 13.6   date of the rules adopted under section 103B.3355 or 103G.2242, 
 13.7   whichever is later, Wetlands must not be drained or filled, 
 13.8   wholly or partially, unless replaced by restoring or creating 
 13.9   wetland areas of at least equal public value under a replacement 
 13.10  plan approved as provided in section 103G.2242, a replacement 
 13.11  plan under a local governmental unit's comprehensive wetland 
 13.12  protection and management plan approved by the board under 
 13.13  section 103G.2242, subdivision 1, paragraph (c) 103G.2243, or, 
 13.14  if a permit to mine is required under section 93.481, under a 
 13.15  mining reclamation plan approved by the commissioner under the 
 13.16  permit to mine.  Mining reclamation plans shall apply the same 
 13.17  principles and standards for replacing wetlands by restoration 
 13.18  or creation of wetland areas that are applicable to mitigation 
 13.19  plans approved as provided in section 103G.2242.  Public value 
 13.20  must be determined in accordance with section 103B.3355 or a 
 13.21  comprehensive wetland protection and management plan established 
 13.22  under section 103G.2243. 
 13.23     (b) Replacement must be guided by the following principles 
 13.24  in descending order of priority: 
 13.25     (1) avoiding the direct or indirect impact of the activity 
 13.26  that may destroy or diminish the wetland; 
 13.27     (2) minimizing the impact by limiting the degree or 
 13.28  magnitude of the wetland activity and its implementation; 
 13.29     (3) rectifying the impact by repairing, rehabilitating, or 
 13.30  restoring the affected wetland environment; 
 13.31     (4) reducing or eliminating the impact over time by 
 13.32  preservation and maintenance operations during the life of the 
 13.33  activity; and 
 13.34     (5) compensating for the impact by restoring a wetland; and 
 13.35     (6) compensating for the impact by replacing or providing 
 13.36  substitute wetland resources or environments. 
 14.1      For a project involving the draining or filling of wetlands 
 14.2   in an amount not exceeding 10,000 square feet more than the 
 14.3   applicable amount in section 103G.2241, subdivision 9, paragraph 
 14.4   (a), the local government unit may make an on-site sequencing 
 14.5   determination without a written alternatives analysis from the 
 14.6   applicant. 
 14.7      (c) If a wetland is located in a cultivated field, then 
 14.8   replacement must be accomplished through restoration only 
 14.9   without regard to the priority order in paragraph (b), provided 
 14.10  that a deed restriction is placed on the altered wetland 
 14.11  prohibiting nonagricultural use for at least ten years.  
 14.12     (d) Restoration and replacement of wetlands must be 
 14.13  accomplished in accordance with the ecology of the landscape 
 14.14  area affected. 
 14.15     (e) Replacement shall be within the same watershed or 
 14.16  county as the impacted wetlands, as based on the wetland 
 14.17  evaluation in section 103G.2242, subdivision 2, except that 
 14.18  counties or watersheds in which a greater than 80 percent or 
 14.19  more of the presettlement wetland acreage is intact area may 
 14.20  accomplish replacement in counties or watersheds in which less 
 14.21  than 50 percent or more of the presettlement wetland acreage has 
 14.22  been filled, drained, or otherwise degraded areas.  Wetlands 
 14.23  impacted by public transportation projects may be replaced 
 14.24  statewide, provided they are approved by the commissioner under 
 14.25  an established wetland banking system, or except that wetlands 
 14.26  impacted in a less than 50 percent area must be replaced in a 
 14.27  less than 50 percent area, and wetlands impacted in the seven 
 14.28  county twin cities metropolitan area by public highways must be 
 14.29  replaced: 
 14.30     (1) in the affected county, or, if no restoration 
 14.31  opportunities exist in the county; 
 14.32     (2) in another seven county twin cities metropolitan area 
 14.33  county. 
 14.34     The board must maintain a public list of restoration 
 14.35  opportunities within the metropolitan area.  Disputes about 
 14.36  restoration opportunities for wetland replacement in a watershed 
 15.1   or county may be appealed to the board's committee for dispute 
 15.2   resolution.  Replacement of wetlands may be accomplished under 
 15.3   the rules for wetland banking as provided for under section 
 15.4   103G.2242. 
 15.5      (f) Except as provided in paragraph (g), for a wetland 
 15.6   located on nonagricultural land, replacement must be in the 
 15.7   ratio of two acres of replaced wetland for each acre of drained 
 15.8   or filled wetland. 
 15.9      (g) For a wetland located on agricultural land or in 
 15.10  counties or watersheds in which a greater than 80 percent or 
 15.11  more of the presettlement wetland acreage exists area, 
 15.12  replacement must be in the ratio of one acre of replaced wetland 
 15.13  for each acre of drained or filled wetland.  
 15.14     (h) Wetlands that are restored or created as a result of an 
 15.15  approved replacement plan are subject to the provisions of this 
 15.16  section for any subsequent drainage or filling. 
 15.17     (i) Except in counties or watersheds where a greater than 
 15.18  80 percent or more of the presettlement wetlands are intact 
 15.19  area, only wetlands that have been restored from previously 
 15.20  drained or filled wetlands, wetlands created by excavation in 
 15.21  nonwetlands, wetlands created by dikes or dams along public or 
 15.22  private drainage ditches, or wetlands created by dikes or dams 
 15.23  associated with the restoration of previously drained or filled 
 15.24  wetlands may be used in a statewide banking program established 
 15.25  in rules adopted under section 103G.2242, subdivision 1.  
 15.26  Modification or conversion of nondegraded naturally occurring 
 15.27  wetlands from one type to another are not eligible for 
 15.28  enrollment in a statewide wetlands bank. 
 15.29     (j) The technical evaluation panel established under 
 15.30  section 103G.2242, subdivision 2, shall ensure that sufficient 
 15.31  time has occurred for the wetland to develop wetland 
 15.32  characteristics of soils, vegetation, and hydrology before 
 15.33  recommending that the wetland be deposited in the statewide 
 15.34  wetland bank.  If the technical evaluation panel has reason to 
 15.35  believe that the wetland characteristics may change 
 15.36  substantially, the panel shall postpone its recommendation until 
 16.1   the wetland has stabilized. 
 16.2      (k) This section and sections 103G.223 to 103G.2242, 
 16.3   103G.2364, and 103G.2365 apply to the state and its departments 
 16.4   and agencies. 
 16.5      (l) For projects involving draining or filling of wetlands 
 16.6   associated with a new public transportation project in a greater 
 16.7   than 80 percent area, public transportation authorities, other 
 16.8   than the state department of transportation, may purchase 
 16.9   credits from the state wetland bank established with proceeds 
 16.10  from Laws 1994, chapter 643, section 26, subdivision 3, 
 16.11  paragraph (c).  Wetland banking credits may be purchased at the 
 16.12  least of the following, but in no case shall the purchase price 
 16.13  be less than $400 per acre:  (1) the cost to the state to 
 16.14  establish the credits; (2) the average estimated market value of 
 16.15  agricultural land in the township where the road project is 
 16.16  located, as determined by the commissioner of revenue; or (3) 
 16.17  the average value of the land in the immediate vicinity of the 
 16.18  road project as determined by the county assessor.  Public 
 16.19  transportation authorities in a less than 80 percent area may 
 16.20  purchase credits from the state at the cost to the state to 
 16.21  establish credits. 
 16.22     (m) A replacement plan for wetlands is not required for 
 16.23  individual projects that result in the filling or draining of 
 16.24  wetlands for the repair, rehabilitation, reconstruction, or 
 16.25  replacement of a currently serviceable existing state, city, 
 16.26  county, or town public road necessary, as determined by the 
 16.27  public transportation authority, to meet state or federal design 
 16.28  or safety standards or requirements, excluding new roads or 
 16.29  roads expanded solely for additional traffic capacity lanes.  
 16.30  This paragraph only applies to authorities for public 
 16.31  transportation projects that: 
 16.32     (1) minimize the amount of wetland filling or draining 
 16.33  associated with the project and consider mitigating important 
 16.34  site-specific wetland functions on-site; and 
 16.35     (2) submit annual reports by January 15 to the board and 
 16.36  members of the public requesting a copy that indicate the 
 17.1   location, amount, and type of wetlands that have been filled or 
 17.2   drained during the previous year and a projection of the 
 17.3   location, amount, and type of wetlands to be filled or drained 
 17.4   during the upcoming year. 
 17.5      The technical evaluation panel shall review minimization 
 17.6   and delineation decisions made by the public transportation 
 17.7   authority and provide recommendations regarding on-site 
 17.8   mitigation if requested to do so by the local government unit, a 
 17.9   contiguous landowner, or a member of the technical evaluation 
 17.10  panel. 
 17.11     Except for state public transportation projects, for which 
 17.12  the state department of transportation is responsible, the board 
 17.13  must replace the wetlands drained or filled by public 
 17.14  transportation projects on existing roads in critical rural and 
 17.15  urban watersheds. 
 17.16     Public transportation authorities at their discretion may 
 17.17  deviate from federal and state design standards on existing road 
 17.18  projects when practical and reasonable to avoid wetland filling 
 17.19  or draining, provided that public safety is not unreasonably 
 17.20  compromised.  The local road authority and its officers and 
 17.21  employees are exempt from liability for any tort claim for 
 17.22  injury to persons or property arising from travel on the highway 
 17.23  and related to the deviation from the design standards for 
 17.24  construction or reconstruction under this paragraph.  This 
 17.25  paragraph does not preclude an action for damages arising from 
 17.26  negligence in construction or maintenance on a highway. 
 17.27     (n) If a landowner seeks approval of a replacement plan 
 17.28  after the proposed project has already impacted the wetland, the 
 17.29  local government unit may require the landowner to replace the 
 17.30  impacted wetland at a ratio not to exceed twice the replacement 
 17.31  ratio otherwise required. 
 17.32     (o) A local government unit may request the board to 
 17.33  reclassify a county or watershed on the basis of its percentage 
 17.34  of presettlement wetlands remaining.  After receipt of 
 17.35  satisfactory documentation from the local government, the board 
 17.36  shall change the classification of a county or watershed.  If 
 18.1   requested by the local government unit, the board must assist in 
 18.2   developing the documentation.  Within 30 days of its action to 
 18.3   approve a change of wetland classifications, the board shall 
 18.4   publish a notice of the change in the Environmental Quality 
 18.5   Board Monitor. 
 18.6      (p) One hundred citizens who reside within the jurisdiction 
 18.7   of the local government unit may request the local government 
 18.8   unit to reclassify a county or watershed on the basis of its 
 18.9   percentage of presettlement wetlands remaining.  In support of 
 18.10  their petition, the citizens shall provide satisfactory 
 18.11  documentation to the local government unit.  The local 
 18.12  government unit shall consider the petition and forward the 
 18.13  request to the board under paragraph (o) or provide a reason why 
 18.14  the petition is denied. 
 18.15     Subd. 2.  [ROAD CREDIT FUNDING.] At least 50 percent of 
 18.16  money appropriated for road repair wetland replacement credit 
 18.17  under this section must be used for wetland restoration in the 
 18.18  seven county metropolitan area. 
 18.19     The board shall give priority to restoration projects that 
 18.20  will: 
 18.21     (1) intensify land use that leads to more compact 
 18.22  development or redevelopment; 
 18.23     (2) encourage public infrastructure investments which 
 18.24  connect urban neighborhoods and suburban communities, attract 
 18.25  private sector investment in commercial or residential 
 18.26  properties adjacent to the public improvement; or 
 18.27     (3) complement projects receiving funding under section 
 18.28  473.253. 
 18.29     Sec. 25.  Minnesota Statutes 1994, section 103G.2241, is 
 18.30  amended to read: 
 18.31     103G.2241 [EXEMPTIONS.] 
 18.32     (a) Subject to the conditions in paragraph (b), a 
 18.33  replacement plan for wetlands is not required for:  
 18.34     (1) activities in a wetland that was planted with annually 
 18.35  seeded crops, was in a crop rotation seeding of pasture grasses 
 18.36  or legumes, or was required to be set aside to receive price 
 19.1   support or other payments under United States Code, title 7, 
 19.2   sections 1421 to 1469, in six of the last ten years prior to 
 19.3   January 1, 1991; 
 19.4      (2) activities in a wetland that is or has been enrolled in 
 19.5   the federal conservation reserve program under United States 
 19.6   Code, title 16, section 3831, that: 
 19.7      (i) was planted with annually seeded crops, was in a crop 
 19.8   rotation seeding, or was required to be set aside to receive 
 19.9   price support or payment under United States Code, title 7, 
 19.10  sections 1421 to 1469, in six of the last ten years prior to 
 19.11  being enrolled in the program; and 
 19.12     (ii) has not been restored with assistance from a public or 
 19.13  private wetland restoration program; 
 19.14     (3) activities necessary to repair and maintain existing 
 19.15  public or private drainage systems as long as wetlands that have 
 19.16  been in existence for more than 20 years are not drained; 
 19.17     (4) activities in a wetland that has received a commenced 
 19.18  drainage determination provided for by the federal Food Security 
 19.19  Act of 1985, that was made to the county agricultural 
 19.20  stabilization and conservation service office prior to September 
 19.21  19, 1988, and a ruling and any subsequent appeals or reviews 
 19.22  have determined that drainage of the wetland had been commenced 
 19.23  prior to December 23, 1985; 
 19.24     (5) activities exempted from federal regulation under 
 19.25  United States Code, title 33, section 1344(f); 
 19.26     (6) activities authorized under, and conducted in 
 19.27  accordance with, an applicable general permit issued by the 
 19.28  United States Army Corps of Engineers under section 404 of the 
 19.29  federal Clean Water Act, United States Code, title 33, section 
 19.30  1344, except the nationwide permit in Code of Federal 
 19.31  Regulations, title 33, section 330.5, paragraph (a), clause 
 19.32  (14), limited to when a new road crosses a wetland, and all of 
 19.33  clause (26); 
 19.34     (7) activities in a type 1 wetland on agricultural land, as 
 19.35  defined in United States Fish and Wildlife Circular No. 39 (1971 
 19.36  edition) except for bottomland hardwood type 1 wetlands; 
 20.1      (8) activities in a type 2 wetland that is two acres in 
 20.2   size or less located on agricultural land; 
 20.3      (9) activities in a wetland restored for conservation 
 20.4   purposes under a contract or easement providing the landowner 
 20.5   with the right to drain the restored wetland; 
 20.6      (10) activities in a wetland created solely as a result of: 
 20.7      (i) beaver dam construction; 
 20.8      (ii) blockage of culverts through roadways maintained by a 
 20.9   public or private entity; 
 20.10     (iii) actions by public entities that were taken for a 
 20.11  purpose other than creating the wetland; or 
 20.12     (iv) any combination of (i) to (iii); 
 20.13     (11) placement, maintenance, repair, enhancement, or 
 20.14  replacement of utility or utility-type service, including the 
 20.15  transmission, distribution, or furnishing, at wholesale or 
 20.16  retail, of natural or manufactured gas, electricity, telephone, 
 20.17  or radio service or communications if: 
 20.18     (i) the impacts of the proposed project on the hydrologic 
 20.19  and biological characteristics of the wetland have been avoided 
 20.20  and minimized to the extent possible; and 
 20.21     (ii) the proposed project significantly modifies or alters 
 20.22  less than one-half acre of wetlands; 
 20.23     (12) activities associated with routine maintenance of 
 20.24  utility and pipeline rights-of-way, provided the activities do 
 20.25  not result in additional intrusion into the wetland; 
 20.26     (13) alteration of a wetland associated with the operation, 
 20.27  maintenance, or repair of an interstate pipeline; 
 20.28     (14) temporarily crossing or entering a wetland to perform 
 20.29  silvicultural activities, including timber harvest as part of a 
 20.30  forest management activity, so long as the activity limits the 
 20.31  impact on the hydrologic and biologic characteristics of the 
 20.32  wetland; the activities do not result in the construction of 
 20.33  dikes, drainage ditches, tile lines, or buildings; and the 
 20.34  timber harvesting and other silvicultural practices do not 
 20.35  result in the drainage of the wetland or public waters; 
 20.36     (15) permanent access for forest roads across wetlands so 
 21.1   long as the activity limits the impact on the hydrologic and 
 21.2   biologic characteristics of the wetland; the construction 
 21.3   activities do not result in the access becoming a dike, drainage 
 21.4   ditch or tile line; with filling avoided wherever possible; and 
 21.5   there is no drainage of the wetland or public waters; 
 21.6      (16) draining or filling up to one-half acre of wetlands 
 21.7   for the repair, rehabilitation, or replacement of a previously 
 21.8   authorized, currently serviceable existing public road, provided 
 21.9   that minor deviations in the public road's configuration or 
 21.10  filled area, including those due to changes in materials, 
 21.11  construction techniques, or current construction codes or safety 
 21.12  standards, that are necessary to make repairs, rehabilitation, 
 21.13  or replacement are allowed if the wetland draining or filling 
 21.14  resulting from the repair, rehabilitation, or replacement is 
 21.15  minimized; 
 21.16     (17) emergency repair and normal maintenance and repair of 
 21.17  existing public works, provided the activity does not result in 
 21.18  additional intrusion of the public works into the wetland and do 
 21.19  not result in the draining or filling, wholly or partially, of a 
 21.20  wetland; 
 21.21     (18) normal maintenance and minor repair of structures 
 21.22  causing no additional intrusion of an existing structure into 
 21.23  the wetland, and maintenance and repair of private crossings 
 21.24  that do not result in the draining or filling, wholly or 
 21.25  partially, of a wetland; 
 21.26     (19) duck blinds; 
 21.27     (20) aquaculture activities, including pond excavation and 
 21.28  construction and maintenance of associated access roads and 
 21.29  dikes authorized under, and conducted in accordance with, a 
 21.30  permit issued by the United States Army Corps of Engineers under 
 21.31  section 404 of the federal Clean Water Act, United States Code, 
 21.32  title 33, section 1344, but not including construction or 
 21.33  expansion of buildings; 
 21.34     (21) wild rice production activities, including necessary 
 21.35  diking and other activities authorized under a permit issued by 
 21.36  the United States Army Corps of Engineers under section 404 of 
 22.1   the federal Clean Water Act, United States Code, title 33, 
 22.2   section 1344; 
 22.3      (22) normal agricultural practices to control pests or 
 22.4   weeds, defined by rule as either noxious or secondary weeds, in 
 22.5   accordance with applicable requirements under state and federal 
 22.6   law, including established best management practices; 
 22.7      (23) activities in a wetland that is on agricultural land 
 22.8   annually enrolled in the federal Food, Agricultural, 
 22.9   Conservation, and Trade Act of 1990, United States Code, title 
 22.10  16, section 3821, subsection (a), clauses (1) to (3), as 
 22.11  amended, and is subject to sections 1421 to 1424 of the federal 
 22.12  act in effect on January 1, 1991, except that land enrolled in a 
 22.13  federal farm program is eligible for easement participation for 
 22.14  those acres not already compensated under a federal program; 
 22.15     (24) development projects and ditch improvement projects in 
 22.16  the state that have received preliminary or final plat approval, 
 22.17  or infrastructure that has been installed, or having local site 
 22.18  plan approval, conditional use permits, or similar official 
 22.19  approval by a governing body or government agency, within five 
 22.20  years before July 1, 1991.  In the seven-county metropolitan 
 22.21  area and in cities of the first and second class, plat approval 
 22.22  must be preliminary as approved by the appropriate governing 
 22.23  body; and 
 22.24     (25) activities that result in the draining or filling of 
 22.25  less than 400 square feet of wetlands. 
 22.26     (b) For the purpose of paragraph (a), clause (16), 
 22.27  "currently serviceable" means usable as is or with some 
 22.28  maintenance, but not so degraded as to essentially require 
 22.29  reconstruction.  Paragraph (a), clause (16), authorizes the 
 22.30  repair, rehabilitation, or replacement of public roads destroyed 
 22.31  by storms, floods, fire, or other discrete events, provided the 
 22.32  repair, rehabilitation, or replacement is commenced or under 
 22.33  contract to commence within two years of the occurrence of the 
 22.34  destruction or damage. 
 22.35     (c) A person conducting an activity in a wetland under an 
 22.36  exemption in paragraph (a) shall ensure that: 
 23.1      (1) appropriate erosion control measures are taken to 
 23.2   prevent sedimentation of the water; 
 23.3      (2) the activity does not block fish passage in a 
 23.4   watercourse; and 
 23.5      (3) the activity is conducted in compliance with all other 
 23.6   applicable federal, state, and local requirements, including 
 23.7   best management practices and water resource protection 
 23.8   requirements established under chapter 103H. 
 23.9      Subdivision 1.  [AGRICULTURAL ACTIVITIES.] (a) A 
 23.10  replacement plan for wetlands is not required for: 
 23.11     (1) activities in a wetland that was planted with annually 
 23.12  seeded crops, was in a crop rotation seeding of pasture grass or 
 23.13  legumes, or was required to be set aside to receive price 
 23.14  support or other payments under United States Code, title 7, 
 23.15  sections 1421 to 1469, in six of the last ten years prior to 
 23.16  January 1, 1991; 
 23.17     (2) activities in a wetland that is or has been enrolled in 
 23.18  the federal conservation reserve program under United States 
 23.19  Code, title 16, section 3831, that: 
 23.20     (i) was planted with annually seeded crops, was in a crop 
 23.21  rotation seeding, or was required to be set aside to receive 
 23.22  price support or payment under United States Code, title 7, 
 23.23  sections 1421 to 1469, in six of the last ten years prior to 
 23.24  being enrolled in the program; and 
 23.25     (ii) has not been restored with assistance from a public or 
 23.26  private wetland restoration program; 
 23.27     (3) activities in a wetland that has received a commenced 
 23.28  drainage determination provided for by the federal Food Security 
 23.29  Act of 1985, that was made to the county agricultural 
 23.30  stabilization and conservation service office prior to September 
 23.31  19, 1988, and a ruling and any subsequent appeals or reviews 
 23.32  have determined that drainage of the wetland had been commenced 
 23.33  prior to December 23, 1985; 
 23.34     (4) activities in a type 1 wetland on agricultural land, 
 23.35  except for bottomland hardwood type 1 wetlands, and activities 
 23.36  in a type 2 or type 6 wetland that is less than two acres in 
 24.1   size and located on agricultural land; 
 24.2      (5) aquaculture activities including pond excavation and 
 24.3   construction and maintenance of associated access roads and 
 24.4   dikes authorized under, and conducted in accordance with, a 
 24.5   permit issued by the United States Army Corps of Engineers under 
 24.6   section 404 of the federal Clean Water Act, United States Code, 
 24.7   title 33, section 1344, but not including construction or 
 24.8   expansion of buildings; 
 24.9      (6) wild rice production activities, including necessary 
 24.10  diking and other activities authorized under a permit issued by 
 24.11  the United States Army Corps of Engineers under section 404 of 
 24.12  the federal Clean Water Act, United States Code, title 33, 
 24.13  section 1344; 
 24.14     (7) normal agricultural practices to control noxious or 
 24.15  secondary weeds as defined by rule of the commissioner of 
 24.16  agriculture, in accordance with applicable requirements under 
 24.17  state and federal law, including established best management 
 24.18  practices; and 
 24.19     (8) agricultural activities in a wetland that is on 
 24.20  agricultural land annually enrolled in the federal Food, 
 24.21  Agricultural, Conservation, and Trade Act of 1990, United States 
 24.22  Code, title 16, section 3821, subsection (a), clauses (1) to 
 24.23  (3), as amended, and is subject to sections 1421 to 1424 of the 
 24.24  federal act in effect on January 1, 1991, except that land 
 24.25  enrolled in a federal farm program is eligible for easement 
 24.26  participation for those acres not already compensated under a 
 24.27  federal program. 
 24.28     (b) The exemption under paragraph (a), clause (4), may be 
 24.29  expanded to additional acreage, including types 1, 2, and 6 
 24.30  wetlands that are part of a larger wetland system, when the 
 24.31  additional acreage is part of a conservation plan approved by 
 24.32  the local soil and water conservation district, the additional 
 24.33  draining or filling is necessary for efficient operation of the 
 24.34  farm, the hydrology of the larger wetland system is not 
 24.35  adversely affected, and wetlands other than types 1, 2, and 6 
 24.36  are not drained or filled. 
 25.1      Subd. 2.  [DRAINAGE.] (a) For the purposes of this 
 25.2   subdivision, "public drainage system" means a drainage system as 
 25.3   defined in section 103E.005, subdivision 12, and any ditch or 
 25.4   tile lawfully connected to the drainage system. 
 25.5      (b) A replacement plan is not required for draining of type 
 25.6   1 wetlands, or up to five acres of type 2 or 6 wetlands, in an 
 25.7   unincorporated area on land that has been assessed drainage 
 25.8   benefits for a public drainage system, provided that: 
 25.9      (1) during the 20-year period that ended January 1, 1992: 
 25.10     (i) there was an expenditure made from the drainage system 
 25.11  account for the public drainage system; 
 25.12     (ii) the public drainage system was repaired or maintained 
 25.13  as approved by the drainage authority; or 
 25.14     (iii) no repair or maintenance of the public drainage 
 25.15  system was required under section 103E.705, subdivision 1, as 
 25.16  determined by the public drainage authority; and 
 25.17     (2) the wetlands are not drained for conversion to: 
 25.18     (i) platted lots; 
 25.19     (ii) planned unit, commercial, or industrial developments; 
 25.20  or 
 25.21     (iii) any development with more than one residential unit 
 25.22  per 40 acres. 
 25.23  If wetlands drained under this paragraph are converted to uses 
 25.24  prohibited under clause (2) during the ten-year period following 
 25.25  drainage, the wetlands must be replaced under section 103G.222. 
 25.26     (c) A replacement plan is not required for draining or 
 25.27  filling of wetlands, except for draining types 3, 4, and 5 
 25.28  wetlands that have been in existence for more than 25 years, 
 25.29  resulting from maintenance and repair of existing public 
 25.30  drainage systems. 
 25.31     (d) A replacement plan is not required for draining or 
 25.32  filling of wetlands, except for draining wetlands that have been 
 25.33  in existence for more than 25 years, resulting from maintenance 
 25.34  and repair of existing drainage systems other than public 
 25.35  drainage systems. 
 25.36     (e) A replacement plan is not required for draining or 
 26.1   filling of wetlands resulting from activities conducted as part 
 26.2   of a public drainage system improvement project that received 
 26.3   final approval from the drainage authority before July 1, 1991, 
 26.4   and after July 1, 1986, if: 
 26.5      (1) the approval remains valid; 
 26.6      (2) the project remains active; and 
 26.7      (3) no additional drainage will occur beyond that 
 26.8   originally approved. 
 26.9      (f) The public drainage authority may, as part of the 
 26.10  repair, install control structures, realign the ditch, construct 
 26.11  dikes along the ditch, or make other modifications as necessary 
 26.12  to prevent drainage of the wetland. 
 26.13     (g) Wetlands of all types that would be drained as a part 
 26.14  of a public drainage repair project are eligible for the 
 26.15  permanent wetlands preserve, under section 103F.516.  The board 
 26.16  shall give priority to acquisition of easements on types 3, 4, 
 26.17  and 5 wetlands that have been in existence for more than 25 
 26.18  years on public drainage systems and other wetlands that have 
 26.19  the greatest risk of drainage from a public drainage repair 
 26.20  project. 
 26.21     Subd. 3.  [FEDERAL APPROVALS.] A replacement plan for 
 26.22  wetlands is not required for: 
 26.23     (1) activities exempted from federal regulation under 
 26.24  United States Code, title 33, section 1344(f), as in effect on 
 26.25  January 1, 1991; 
 26.26     (2) activities authorized under, and conducted in 
 26.27  accordance with, an applicable general permit issued by the 
 26.28  United States Army Corps of Engineers under section 404 of the 
 26.29  federal Clean Water Act, United States Code, title 33, section 
 26.30  1344, except the nationwide permit in Code of Federal 
 26.31  Regulations, title 33, section 330.5, paragraph (a), clauses 
 26.32  (14), limited to when a new road crosses a wetland, and (26), as 
 26.33  in effect on January 1, 1991. 
 26.34     Subd. 4.  [WETLAND RESTORATION.] A replacement plan for 
 26.35  wetlands is not required for activities in a wetland restored 
 26.36  for conservation purposes under a contract or easement providing 
 27.1   the landowner with the right to drain the restored wetland. 
 27.2      Subd. 5.  [INCIDENTAL WETLANDS.] A replacement plan for 
 27.3   wetlands is not required for activities in a wetland created 
 27.4   solely as a result of: 
 27.5      (1) beaver dam construction; 
 27.6      (2) blockage of culverts through roadways maintained by a 
 27.7   public or private entity; 
 27.8      (3) actions by public or private entities that were taken 
 27.9   for a purpose other than creating the wetland; or 
 27.10     (4) any combination of clauses (1) to (3). 
 27.11     Subd. 6.  [UTILITIES; PUBLIC WORKS.] A replacement plan for 
 27.12  wetlands is not required for: 
 27.13     (1) placement, maintenance, repair, enhancement, or 
 27.14  replacement of utility or utility-type service if: 
 27.15     (i) the impacts of the proposed project on the hydrologic 
 27.16  and biological characteristics of the wetland have been avoided 
 27.17  and minimized to the extent possible; and 
 27.18     (ii) the proposed project significantly modifies or alters 
 27.19  less than one-half acre of wetlands; 
 27.20     (2) activities associated with routine maintenance of 
 27.21  utility and pipeline rights-of-way, provided the activities do 
 27.22  not result in additional intrusion into the wetland; 
 27.23     (3) alteration of a wetland associated with the operation, 
 27.24  maintenance, or repair of an interstate pipeline within all 
 27.25  existing or acquired interstate pipeline rights-of-way; 
 27.26     (4) emergency repair and normal maintenance and repair of 
 27.27  existing public works, provided the activity does not result in 
 27.28  additional intrusion of the public works into the wetland and 
 27.29  does not result in the draining or filling, wholly or partially, 
 27.30  of a wetland; 
 27.31     (5) normal maintenance and minor repair of structures 
 27.32  causing no additional intrusion of an existing structure into 
 27.33  the wetland, and maintenance and repair of private crossings 
 27.34  that do not result in the draining or filling, wholly or 
 27.35  partially, of a wetland; or 
 27.36     (6) repair and updating of existing individual sewage 
 28.1   treatment systems as necessary to comply with local, state, and 
 28.2   federal regulations. 
 28.3      Subd. 7.  [FORESTRY.] A replacement plan for wetlands is 
 28.4   not required for: 
 28.5      (1) temporarily crossing or entering a wetland to perform 
 28.6   silvicultural activities, including timber harvest as part of a 
 28.7   forest management activity, so long as the activity limits the 
 28.8   impact on the hydrologic and biologic characteristics of the 
 28.9   wetland; the activities do not result in the construction of 
 28.10  dikes, drainage ditches, tile lines, or buildings; and the 
 28.11  timber harvesting and other silvicultural practices do not 
 28.12  result in the drainage of the wetland or public waters; or 
 28.13     (2) permanent access for forest roads across wetlands so 
 28.14  long as the activity limits the impact on the hydrologic and 
 28.15  biologic characteristics of the wetland; the construction 
 28.16  activities do not result in the access becoming a dike, drainage 
 28.17  ditch, or tile line; filling is avoided wherever possible; and 
 28.18  there is no drainage of the wetland or public waters. 
 28.19     Subd. 8.  [APPROVED DEVELOPMENT.] A replacement plan for 
 28.20  wetlands is not required for development projects and ditch 
 28.21  improvement projects in the state that have received preliminary 
 28.22  or final plat approval or have infrastructure that has been 
 28.23  installed or has local site plan approval, conditional use 
 28.24  permits, or similar official approval by a governing body or 
 28.25  government agency, within five years before July 1, 1991.  As 
 28.26  used in this subdivision, "infrastructure" means public water 
 28.27  facilities, storm water and sanitary sewer piping, outfalls, 
 28.28  inlets, culverts, bridges, and any other work defined 
 28.29  specifically by a local government unit as constituting a 
 28.30  capital improvement to a parcel within the context of an 
 28.31  approved development plan. 
 28.32     Subd. 9.  [DE MINIMIS.] (a) Except as provided in 
 28.33  paragraphs (b), (c), and (d), a replacement plan for wetlands is 
 28.34  not required for draining or filling the following amounts of 
 28.35  wetlands as part of a project, regardless of the total amount of 
 28.36  wetlands filled as part of a project: 
 29.1      (1) 10,000 square feet of type 1, type 2, type 6, or type 7 
 29.2   wetland, excluding white cedar and tamarack wetlands, outside of 
 29.3   the shoreland wetland protection zone in a greater than 80 
 29.4   percent area; 
 29.5      (2) 5,000 square feet of type 1, type 2, type 6, or type 7 
 29.6   wetland, excluding white cedar and tamarack wetlands, outside of 
 29.7   the shoreland wetland protection zone in a 50 to 80 percent 
 29.8   area; 
 29.9      (3) 2,000 square feet of type 1, type 2, or type 6 wetland, 
 29.10  outside of the shoreland wetland protection zone in a less than 
 29.11  50 percent area; 
 29.12     (4) 400 square feet of wetland types not listed in clauses 
 29.13  (1) to (3) outside of shoreland wetland protection zones in all 
 29.14  counties; or 
 29.15     (5) 400 square feet of type 1, type 2, type 3, type 4, type 
 29.16  5, type 6, type 7, or type 8 wetland, in the shoreland wetland 
 29.17  protection zone, except that in a greater than 80 percent area, 
 29.18  the local government unit may increase the de minimis amount up 
 29.19  to 1,000 square feet in the shoreland protection zone in areas 
 29.20  beyond the building setback if the wetland is isolated and is 
 29.21  determined to have no direct surficial connection to the public 
 29.22  water.  To the extent that a local shoreland management 
 29.23  ordinance is more restrictive than this provision, the local 
 29.24  shoreland ordinance applies. 
 29.25     (b) The amounts listed in paragraph (a), clauses (1) to 
 29.26  (5), may not be combined on a project. 
 29.27     (c) This exemption no longer applies to a landowner's 
 29.28  portion of a wetland when the cumulative area drained or filled 
 29.29  of the landowner's portion since January 1, 1992, is the 
 29.30  greatest of: 
 29.31     (1) the applicable area listed in paragraph (a), if the 
 29.32  landowner owns the entire wetland; 
 29.33     (2) five percent of the landowner's portion of the wetland; 
 29.34  or 
 29.35     (3) 400 square feet. 
 29.36     (d) Persons proposing to conduct an activity under this 
 30.1   subdivision shall contact the board at a toll-free number to be 
 30.2   provided for information on minimizing wetland impacts.  Failure 
 30.3   to call by the person does not constitute a violation of this 
 30.4   subdivision. 
 30.5      (e) This exemption may not be combined with another 
 30.6   exemption in this section on a project. 
 30.7      Subd. 10.  [WILDLIFE HABITAT.] A replacement plan for 
 30.8   wetlands is not required for: 
 30.9      (1) deposition of spoil resulting from excavation within a 
 30.10  wetland for a wildlife habitat improvement project, if: 
 30.11     (i) the area of deposition does not exceed five percent of 
 30.12  the wetland area or one-half acre, whichever is less, and the 
 30.13  spoil is stabilized and permanently seeded to prevent erosion; 
 30.14     (ii) the project does not have an adverse impact on any 
 30.15  species designated as endangered or threatened under state or 
 30.16  federal law; and 
 30.17     (iii) the project will provide wildlife habitat improvement 
 30.18  as certified by the soil and water conservation district; or 
 30.19     (2) duck blinds. 
 30.20     Subd. 11.  [EXEMPTION CONDITIONS.] (a) A person conducting 
 30.21  an activity in a wetland under an exemption in subdivisions 1 to 
 30.22  10 shall ensure that: 
 30.23     (1) appropriate erosion control measures are taken to 
 30.24  prevent sedimentation of the water; 
 30.25     (2) the activity does not block fish passage in a 
 30.26  watercourse; and 
 30.27     (3) the activity is conducted in compliance with all other 
 30.28  applicable federal, state, and local requirements, including 
 30.29  best management practices and water resource protection 
 30.30  requirements established under chapter 103H. 
 30.31     (b) An activity is exempt if it qualifies for any one of 
 30.32  the exemptions, even though it may be indicated as not exempt 
 30.33  under another exemption. 
 30.34     (c) Persons proposing to conduct an exempt activity are 
 30.35  encouraged to contact the local government unit or the local 
 30.36  government unit's designee for advice on minimizing wetland 
 31.1   impacts. 
 31.2      Sec. 26.  Minnesota Statutes 1994, section 103G.2242, 
 31.3   subdivision 1, is amended to read: 
 31.4      Subdivision 1.  [RULES.] (a) By July 1, 1993, The board, in 
 31.5   consultation with the commissioner, shall adopt rules governing 
 31.6   the approval of wetland value replacement plans under this 
 31.7   section.  These rules must address the criteria, procedure, 
 31.8   timing, and location of acceptable replacement of wetland 
 31.9   values; may address the state establishment and administration 
 31.10  of a wetland banking program for public and private projects, 
 31.11  which may include provisions allowing monetary payment to the 
 31.12  wetland banking program for alteration of wetlands on 
 31.13  agricultural land; the methodology to be used in identifying and 
 31.14  evaluating wetland functions; the administrative, monitoring, 
 31.15  and enforcement procedures to be used; and a procedure for the 
 31.16  review and appeal of decisions under this section.  In the case 
 31.17  of peatlands, the replacement plan rules must consider the 
 31.18  impact on carbon balance described in the report required by 
 31.19  Laws 1990, chapter 587, and include the planting of trees or 
 31.20  shrubs. 
 31.21     (b) After the adoption of the rules, a replacement plan 
 31.22  must be approved by a resolution of the governing body of the 
 31.23  local government unit, consistent with the provisions of the 
 31.24  rules or a comprehensive wetland protection and management plan 
 31.25  approved under section 103G.2243. 
 31.26     (c) The board may approve as an alternative to the rules 
 31.27  adopted under this subdivision a comprehensive wetland 
 31.28  protection and management plan developed by a local government 
 31.29  unit, provided that the plan: 
 31.30     (1) incorporates sections 103A.201, subdivision 2, and 
 31.31  103G.222; 
 31.32     (2) is adopted as part of an approved local water plan 
 31.33  under sections 103B.231 and 103B.311; and 
 31.34     (3) is adopted as part of the local government's official 
 31.35  controls. 
 31.36     (d) If the local government unit fails to apply the rules, 
 32.1   or fails to implement a local program under paragraph 
 32.2   (c) comprehensive wetland protection and management plan 
 32.3   established under section 103G.2243, the government unit is 
 32.4   subject to penalty as determined by the board. 
 32.5      Sec. 27.  Minnesota Statutes 1994, section 103G.2242, 
 32.6   subdivision 2, is amended to read: 
 32.7      Subd. 2.  [EVALUATION.] Questions concerning the public 
 32.8   value, location, size, or type of a wetland shall be submitted 
 32.9   to and determined by a technical evaluation panel after an 
 32.10  on-site inspection.  The technical evaluation panel shall be 
 32.11  composed of a technical professional employee of the board, a 
 32.12  technical professional employee of the local soil and water 
 32.13  conservation district or districts, and a technical professional 
 32.14  with expertise in water resources management appointed by the 
 32.15  local government unit.  The panel shall use the "Federal Manual 
 32.16  for Identifying and Delineating Jurisdictional Wetlands" 
 32.17  (January 1989) "United States Army Corps of Engineers Wetland 
 32.18  Delineation Manual" (January 1987), "Wetlands of the United 
 32.19  States" (United States Fish and Wildlife Service Circular 39, 
 32.20  1971 edition), and "Classification of Wetlands and Deepwater 
 32.21  Habitats of the United States" (1979 edition). The panel shall 
 32.22  provide the wetland determination to the local government unit 
 32.23  that must approve a replacement plan under this section, and may 
 32.24  recommend approval or denial of the plan.  The authority must 
 32.25  consider and include the decision of the technical evaluation 
 32.26  panel in their approval or denial of a plan. 
 32.27     Sec. 28.  Minnesota Statutes 1994, section 103G.2242, 
 32.28  subdivision 4, is amended to read: 
 32.29     Subd. 4.  [DECISION.] Upon receiving and considering all 
 32.30  required data, the local government unit approving a reviewing 
 32.31  replacement plan applications, banking plan applications, and 
 32.32  exemption or no-loss determination requests must act on all 
 32.33  replacement plan applications for plan approval within 60 days, 
 32.34  banking plan applications, and exemption or no-loss 
 32.35  determination requests in compliance with section 15.99. 
 32.36     Sec. 29.  Minnesota Statutes 1994, section 103G.2242, 
 33.1   subdivision 6, is amended to read: 
 33.2      Subd. 6.  [NOTICE OF APPLICATION.] (a) Except as provided 
 33.3   in paragraph (b), within ten days of receiving an application 
 33.4   for approval of a replacement plan under this section, a copy of 
 33.5   the application must be submitted to the board for publication 
 33.6   in the Environmental Quality Board Monitor and separate copies 
 33.7   of the complete application must be mailed to individual members 
 33.8   of the public who request a copy, the board of supervisors of 
 33.9   the soil and water conservation district, the members of the 
 33.10  technical evaluation panel, the managers of the watershed 
 33.11  district if one exists, the board of county commissioners, and 
 33.12  the commissioner of agriculture, and the mayors of the cities 
 33.13  within the area watershed.  At the same time, the local 
 33.14  government unit must give general notice to the public in a 
 33.15  general circulation newspaper within the area affected. natural 
 33.16  resources.  Individual members of the public who request a copy 
 33.17  shall be provided information to identify the applicant and the 
 33.18  location and scope of the project. 
 33.19     (b) Within ten days of receiving an application for 
 33.20  approval of a replacement plan under this section for an 
 33.21  activity affecting less than 10,000 square feet of wetland, a 
 33.22  summary of the application must be submitted for publication in 
 33.23  the Environmental Quality Board Monitor and separate copies 
 33.24  mailed to the members of the technical evaluation panel, 
 33.25  individual members of the public who request a copy, and the 
 33.26  managers of the watershed district, if applicable.  At the same 
 33.27  time, the local government unit must give general notice to the 
 33.28  public in a general circulation newspaper within the area 
 33.29  affected commissioner of natural resources. 
 33.30     (c) For the purpose of this subdivision, "application" 
 33.31  includes a revised application for replacement plan approval and 
 33.32  an application for a revision to an approved replacement plan if:
 33.33     (1) the wetland area to be drained or filled under the 
 33.34  revised replacement plan is at least ten percent larger than the 
 33.35  area to be drained or filled under the original replacement 
 33.36  plan; or 
 34.1      (2) the wetland area to be drained or filled under the 
 34.2   revised replacement is located more than 500 feet from the area 
 34.3   to be drained or filled under the original replacement plan. 
 34.4      Sec. 30.  Minnesota Statutes 1994, section 103G.2242, 
 34.5   subdivision 7, is amended to read: 
 34.6      Subd. 7.  [NOTICE OF DECISION.] (a) Except as provided in 
 34.7   paragraph (b), at least 30 Within ten days prior to the 
 34.8   effective date of the approval or denial of a replacement plan 
 34.9   under this section, a copy summary of the approval or denial 
 34.10  must be submitted for publication in the Environmental Quality 
 34.11  Board Monitor and separate copies mailed to members of the 
 34.12  technical evaluation panel, the applicant, the board, individual 
 34.13  members of the public who request a copy, the board of 
 34.14  supervisors of the soil and water conservation district, the 
 34.15  managers of the watershed district, the board of county 
 34.16  commissioners, if one exists, and the commissioner of 
 34.17  agriculture, and the mayors of the cities within the area 
 34.18  watershed natural resources. 
 34.19     (b) Within ten days of the decision approving or denying a 
 34.20  replacement plan under this section for an activity affecting 
 34.21  less than 10,000 square feet of wetland, a summary of the 
 34.22  approval or denial must be submitted for publication in the 
 34.23  Environmental Quality Board Monitor and separate copies mailed 
 34.24  to the applicant, individual members of the public who request a 
 34.25  copy, the members of the technical evaluation panel, and the 
 34.26  managers of the watershed district, if applicable.  At the same 
 34.27  time, the local government unit must give general notice to the 
 34.28  public in a general circulation newspaper within the area 
 34.29  affected. 
 34.30     Sec. 31.  Minnesota Statutes 1994, section 103G.2242, 
 34.31  subdivision 9, is amended to read: 
 34.32     Subd. 9.  [APPEAL.] Appeal of the a replacement plan, 
 34.33  exemption, or no-loss decision may be obtained by mailing a 
 34.34  notice of appeal petition and payment of a filing fee of $200, 
 34.35  which shall be retained by the board to defray administrative 
 34.36  costs, to the board within 30 15 days after the postmarked date 
 35.1   of the mailing specified in subdivision 7.  If appeal is not 
 35.2   sought within 30 15 days, the decision becomes final.  The local 
 35.3   government unit may require the petitioner to post a letter of 
 35.4   credit, cashier's check, or cash in an amount not to exceed 
 35.5   $500.  If the petition for hearing is accepted, the amount 
 35.6   posted must be returned to the petitioner.  Appeal may be made 
 35.7   by the wetland owner, by any of those to whom notice is required 
 35.8   to be mailed under subdivision 7, or by 100 residents of the 
 35.9   county in which a majority of the wetland is located.  Within 30 
 35.10  days after receiving a petition, the board shall decide whether 
 35.11  to grant the petition and hear the appeal.  The board shall 
 35.12  grant the petition unless the board finds that the appeal is 
 35.13  meritless, trivial, or brought solely for the purposes of delay; 
 35.14  that the petitioner has not exhausted all local administrative 
 35.15  remedies; or that the petitioner has not posted a letter of 
 35.16  credit, cashier's check, or cash if required by the local 
 35.17  government unit.  In determining whether to grant the appeal, 
 35.18  the board shall also consider the size of the wetland, other 
 35.19  factors in controversy, any patterns of similar acts by the 
 35.20  local government unit or petitioner, and the consequences of the 
 35.21  delay resulting from the appeal.  All appeals must be heard by 
 35.22  the committee for dispute resolution of the board, and a 
 35.23  decision made within 60 days of the appeal.  The decision must 
 35.24  be served by mail on the parties to the appeal, and is not 
 35.25  subject to the provisions of chapter 14.  The A decision whether 
 35.26  to grant a petition for appeal and a decision on the merits of 
 35.27  an appeal must be considered the decision of an agency in a 
 35.28  contested case for purposes of judicial review under sections 
 35.29  14.63 to 14.69. 
 35.30     Sec. 32.  Minnesota Statutes 1994, section 103G.2242, 
 35.31  subdivision 12, is amended to read: 
 35.32     Subd. 12.  [REPLACEMENT CREDITS.] (a) No public or private 
 35.33  wetland restoration, enhancement, or construction may be allowed 
 35.34  for replacement unless specifically designated for replacement 
 35.35  and paid for by the individual or organization performing the 
 35.36  wetland restoration, enhancement, or construction, and is 
 36.1   completed prior to any draining or filling of the wetland. 
 36.2      This subdivision (b) Paragraph (a) does not apply to a 
 36.3   wetland whose owner has paid back with interest the individual 
 36.4   or organization restoring, enhancing, or constructing the 
 36.5   wetland. 
 36.6      (c) Notwithstanding section 103G.222, subdivision 1, 
 36.7   paragraph (i), the following actions are eligible for 
 36.8   replacement credit as determined by the local government unit, 
 36.9   including enrollment in a statewide wetlands bank: 
 36.10     (1) Reestablishment of permanent vegetative cover on a 
 36.11  wetland that was planted with annually seeded crops, was in a 
 36.12  crop rotation seeding of pasture grasses or legumes, or was 
 36.13  required to be set aside to receive price supports or other 
 36.14  payments under United States Code, title 7, sections 1421 to 
 36.15  1469, in six of the last ten years prior to January 1, 1991.  
 36.16  Replacement credit may not exceed 50 percent of the total 
 36.17  wetland area vegetatively restored; 
 36.18     (2) Buffer areas of permanent vegetative cover established 
 36.19  on upland adjacent to replacement wetlands, provided that the 
 36.20  upland buffer must be established at the time of wetland 
 36.21  replacement and replacement credit for the buffer may not exceed 
 36.22  75 percent of the replacement wetland area and may only be used 
 36.23  for replacement above a 1:1 ratio; 
 36.24     (3) Wetlands restored for conservation purposes under 
 36.25  terminated easements or contracts, provided that Up to 75 
 36.26  percent of the restored wetland area is eligible for replacement 
 36.27  credit and adjacent upland buffer areas reestablished to 
 36.28  permanent vegetative cover are eligible for replacement credit 
 36.29  above a 1:1 ratio in an amount not to exceed 25 percent of the 
 36.30  restored wetland area; and 
 36.31     (4) Water quality treatment ponds constructed to pretreat 
 36.32  storm water runoff prior to discharge to wetlands, public 
 36.33  waters, or other water bodies, provided that the water quality 
 36.34  treatment ponds must be associated with an ongoing or proposed 
 36.35  project that will impact a wetland and replacement credit for 
 36.36  the treatment ponds may not exceed 75 percent of the treatment 
 37.1   pond area and may only be used for replacement above a 1:1 ratio.
 37.2      Sec. 33.  [103G.2243] [LOCAL COMPREHENSIVE WETLAND 
 37.3   PROTECTION AND MANAGEMENT PLANS.] 
 37.4      Subdivision 1.  [GENERAL REQUIREMENTS; NOTICE AND 
 37.5   PARTICIPATION.] (a) As an alternative to the rules adopted under 
 37.6   section 103G.2242, subdivision 1, and the public value criteria 
 37.7   established or approved under section 103B.3355, a comprehensive 
 37.8   wetland protection and management plan may be developed by a 
 37.9   local government unit, or one or more local government units 
 37.10  operating under a joint powers agreement, provided that: 
 37.11     (1) a notice is made at the beginning of the planning 
 37.12  process to the board, the commissioner of natural resources, the 
 37.13  pollution control agency, local government units, and local 
 37.14  citizens to actively participate in the development of the plan; 
 37.15  and 
 37.16     (2) the plan is implemented by ordinance as part of the 
 37.17  local government's official controls under chapter 394, for a 
 37.18  county; chapter 462, for a city; chapter 366, for a town; and by 
 37.19  rules adopted under chapter 103D, for a watershed district; and 
 37.20  chapter 103B, for a watershed management organization. 
 37.21     (b) An organization that is invited to participate in the 
 37.22  development of the local plan, but declines to do so and fails 
 37.23  to participate or to provide written comments during the local 
 37.24  review process, waives the right during board review to submit 
 37.25  comments, except comments concerning consistency of the plan 
 37.26  with laws and rules administered by that agency.  In determining 
 37.27  the merit of an agency comment, the board shall consider the 
 37.28  involvement of the agency in the development of the local plan. 
 37.29     Subd. 2.  [PLAN CONTENTS.] A comprehensive wetland 
 37.30  protection and management plan may: 
 37.31     (1) provide for classification of wetlands in the plan area 
 37.32  based on: 
 37.33     (i) an inventory of wetlands in the plan area; 
 37.34     (ii) an assessment of the wetland functions listed in 
 37.35  section 103B.3355, using a methodology chosen by the technical 
 37.36  evaluation panel from one of the methodologies established or 
 38.1   approved by the board under that section; and 
 38.2      (iii) the resulting public values; 
 38.3      (2) vary application of the sequencing standards in section 
 38.4   103G.222, subdivision 1, paragraph (b), for projects based on 
 38.5   the classification and criteria set forth in the plan; 
 38.6      (3) vary the replacement standards of section 103G.222, 
 38.7   subdivision 1, paragraphs (f) and (g), based on the 
 38.8   classification and criteria set forth in the plan, for specific 
 38.9   wetland impacts provided there is no net loss of public values 
 38.10  within the area subject to the plan, and so long as: 
 38.11     (i) in a 50 to 80 percent area, a minimum acreage 
 38.12  requirement of one acre of replaced wetland for each acre of 
 38.13  drained or filled wetland requiring replacement is met within 
 38.14  the area subject to the plan; and 
 38.15     (ii) in a less than 50 percent area, a minimum acreage 
 38.16  requirement of two acres of replaced wetland for each acre of 
 38.17  drained or filled wetland requiring replacement is met within 
 38.18  the area subject to the plan, except that replacement for the 
 38.19  amount above a 1:1 ratio can be accomplished as described in 
 38.20  subdivision 12; 
 38.21     (4) in a greater than 80 percent area, allow replacement 
 38.22  credit, based on the classification and criteria set forth in 
 38.23  the plan, for any project that increases the public value of 
 38.24  wetlands, including activities on adjacent upland acres; and 
 38.25     (5) in a greater than 80 percent area, based on the 
 38.26  classification and criteria set forth in the plan, expand the 
 38.27  application of the exemptions in section 103G.2241, subdivision 
 38.28  1, paragraph (a), clause (4), to also include nonagricultural 
 38.29  land, provided there is no net loss of wetland values. 
 38.30     Subd. 3.  [BOARD REVIEW AND APPROVAL; MEDIATION; JUDICIAL 
 38.31  REVIEW.] (a) The plan is deemed approved 60 days after the local 
 38.32  government submits the final plan to the board, unless the board 
 38.33  disagrees with the plan as provided in paragraph (d). 
 38.34     (b) The board may not disapprove a plan if the board 
 38.35  determines the plan meets the requirements of this section. 
 38.36     (c) In its review of a plan, the board shall advise the 
 39.1   local government unit of those elements of the plan that are 
 39.2   more restrictive than state law and rules for purposes of 
 39.3   section 103G.237, subdivision 5. 
 39.4      (d) If the board disagrees with the plan or any elements of 
 39.5   the plan, the board shall, in writing, notify the local 
 39.6   government of the plan deficiencies and suggested changes.  The 
 39.7   board shall include in the response to the local government the 
 39.8   scientific justification, if applicable, for the board's 
 39.9   concerns with the plan.  Upon receipt of the board's concerns 
 39.10  with the plan, the local government has 60 days to revise the 
 39.11  plan and resubmit the plan to the board for reconsideration, or 
 39.12  the local government may request a hearing before the board.  
 39.13  The board shall hold a hearing within the boundaries of the 
 39.14  jurisdiction of the local government within 60 days of the 
 39.15  request for hearing.  After the hearing, the board shall, within 
 39.16  60 days, prepare a report of its decision and inform the local 
 39.17  government. 
 39.18     (e) If, after the hearing, the board and local government 
 39.19  disagree on the plan, the board shall, within 60 days, initiate 
 39.20  mediation through a neutral party.  If the board and local 
 39.21  government unit agree in writing not to use mediation or the 
 39.22  mediation does not result in a resolution of the differences 
 39.23  between the parties, then the board may commence a declaratory 
 39.24  judgment action in the district court of the county where the 
 39.25  local government unit is located.  If the board does not 
 39.26  commence a declaratory judgment action within the applicable 
 39.27  60-day period, the plan is deemed approved. 
 39.28     (f) The declaratory judgment action must be commenced 
 39.29  within 60 days after the date of the written agreement not to 
 39.30  use mediation or 60 days after conclusion of the mediation.  If 
 39.31  the board commences a declaratory judgment action, the district 
 39.32  court shall review the board's record of decision and the record 
 39.33  of decision of the local government unit.  The district court 
 39.34  shall affirm the plan if it meets the requirements of this 
 39.35  subdivision. 
 39.36     Subd. 4.  [EFFECTIVE DATE; REPLACEMENT DECISIONS.] (a) The 
 40.1   plan becomes effective as provided in subdivision 3, paragraphs 
 40.2   (d) to (f), and after adoption of the plan into the official 
 40.3   controls of the local government. 
 40.4      (b) After the effective date of a plan, a local government 
 40.5   unit shall make replacement decisions consistent with the plan. 
 40.6      Subd. 5.  [PLAN AMENDMENTS.] Amendments to the plan become 
 40.7   effective upon completion of the same process required for the 
 40.8   original plan. 
 40.9      Subd. 6.  [WATER PLANNING PROCESSES APPLY.] Except as 
 40.10  otherwise provided for in this section, all other requirements 
 40.11  relating to development of the plan must be consistent with the 
 40.12  water plan processes under sections 103B.231 and 103B.311. 
 40.13     Sec. 34.  [103G.2244] [WETLAND CREATION OR RESTORATION 
 40.14  WITHIN PIPELINE EASEMENT.] 
 40.15     A person proposing to create or restore a wetland within 
 40.16  the easement of a pipeline as defined in section 299J.02, 
 40.17  subdivision 11, shall first notify the easement holder and the 
 40.18  director of the office of pipeline safety in writing.  The 
 40.19  person may not create or restore the wetland if, within 90 days 
 40.20  after receiving the required notice, the easement holder or the 
 40.21  director of the office of pipeline safety provides to the person 
 40.22  a written notice of objection that includes the reasons for the 
 40.23  objection. 
 40.24     Sec. 35.  Minnesota Statutes 1994, section 103G.237, 
 40.25  subdivision 4, is amended to read: 
 40.26     Subd. 4.  [COMPENSATION.] (a) The board shall award 
 40.27  compensation in an amount equal to the greater of: 
 40.28     (1) 50 percent of the value of the wetland, calculated by 
 40.29  multiplying the acreage of the wetland by the greater of: 
 40.30     (1) (i) the average equalized estimated market value of 
 40.31  agricultural property in the township as established by the 
 40.32  commissioner of revenue at the time application for compensation 
 40.33  is made; or 
 40.34     (2) (ii) the assessed value per acre of the parcel 
 40.35  containing the wetland, based on the assessed value of the 
 40.36  parcel as stated on the most recent tax statement; or 
 41.1      (2) $200 per acre of wetland subject to the replacement 
 41.2   plan, increased or decreased by the percentage change of the 
 41.3   assessed valuation of land in the township where the wetland is 
 41.4   located from the 1995 valuation. 
 41.5      (b) A person who receives compensation under paragraph (a) 
 41.6   shall convey to the board a permanent conservation easement as 
 41.7   described in section 103F.515, subdivision 4.  An easement 
 41.8   conveyed under this paragraph is subject to correction and 
 41.9   enforcement under section 103F.515, subdivisions 8 and 9. 
 41.10     Sec. 36.  Minnesota Statutes 1994, section 103G.237, is 
 41.11  amended by adding a subdivision to read: 
 41.12     Subd. 5.  [COMPENSATION CLAIMS AGAINST LOCAL GOVERNMENT 
 41.13  UNITS.] (a) At the request of a local government unit against 
 41.14  which a compensation action is brought based at least in part on 
 41.15  the local government unit's application of section 103G.222, 
 41.16  103G.2241, 103G.2242, 103G.2243, 103G.237, or 103G.2372, or 
 41.17  rules adopted by the board to implement these sections, the 
 41.18  state, through the attorney general, shall intervene in the 
 41.19  action on behalf of the local government unit and shall 
 41.20  thereafter be considered a defendant in the action.  A local 
 41.21  government unit making a request under this paragraph shall 
 41.22  provide the attorney general with a copy of the complaint as 
 41.23  soon as possible after being served.  If requested by the 
 41.24  attorney general, the court shall grant additional time to file 
 41.25  an answer equal to the time between service of the complaint on 
 41.26  the local government unit and receipt of the complaint by the 
 41.27  attorney general. 
 41.28     (b) The state is liable for costs, damages, fees, and 
 41.29  compensation awarded in the action based on the local government 
 41.30  unit's adoption or implementation of standards that are required 
 41.31  by state law, as determined by the court.  The local government 
 41.32  unit is liable for costs, damages, fees, and compensation 
 41.33  awarded in the action based on local standards that are more 
 41.34  restrictive than state law and rules. 
 41.35     (c) For the purposes of this subdivision, "compensation 
 41.36  action" means an action in which the plaintiff seeks 
 42.1   compensation for a taking of private property under the state or 
 42.2   federal constitution. 
 42.3      Sec. 37.  Minnesota Statutes 1994, section 103G.2373, is 
 42.4   amended to read: 
 42.5      103G.2373 [ANNUAL WETLANDS REPORT.] 
 42.6      By January March 1 of each year, the commissioner of 
 42.7   natural resources and the board of water and soil resources 
 42.8   shall jointly report to the committees of the legislature with 
 42.9   jurisdiction over matters relating to agriculture, the 
 42.10  environment, and natural resources on: 
 42.11     (1) the status of implementation of state laws and programs 
 42.12  relating to wetlands; 
 42.13     (2) the quantity, quality, acreage, types, and public value 
 42.14  of wetlands in the state; and 
 42.15     (3) changes in the items in clause (2). 
 42.16     Sec. 38.  Minnesota Statutes 1994, section 115.03, is 
 42.17  amended by adding a subdivision to read: 
 42.18     Subd. 4a.  [SECTION 401 CERTIFICATIONS.] (a) The following 
 42.19  definitions apply to this subdivision: 
 42.20     (1) "section 401 certification" means a water quality 
 42.21  certification required under section 401 of the federal Clean 
 42.22  Water Act, United States Code, title 33, section 1341; and 
 42.23     (2) "nationwide permit" means a nationwide general permit 
 42.24  issued by the United States Army Corps of Engineers and listed 
 42.25  in Code of Federal Regulations, title 40, part 330, appendix A. 
 42.26     (b) The agency is responsible for providing section 401 
 42.27  certifications for nationwide permits. 
 42.28     (c) Before making a final decision on a section 401 
 42.29  certification for regional conditions on a nationwide permit, 
 42.30  the agency shall hold at least one public meeting outside the 
 42.31  seven-county metropolitan area. 
 42.32     (d) In addition to other notice required by law, the agency 
 42.33  shall provide written notice of a meeting at which the agency 
 42.34  will be considering a section 401 certification for regional 
 42.35  conditions on a nationwide permit at least 21 days before the 
 42.36  date of the meeting to the members of the senate and house of 
 43.1   representatives environment and natural resources committees, 
 43.2   the senate agriculture and rural development committee, and the 
 43.3   house of representatives agriculture committee. 
 43.4      Sec. 39.  [RULES.] 
 43.5      Within 60 days of the effective date of this section, the 
 43.6   board, in consultation with the commissioners of natural 
 43.7   resources and agriculture, shall adopt rules that amend the 
 43.8   rules previously adopted under Minnesota Statutes, sections 
 43.9   103G.2242, subdivision 1, and 103B.3355.  These rules are exempt 
 43.10  from the rulemaking provisions of Minnesota Statutes, chapter 
 43.11  14, except that Minnesota Statutes, section 14.386, applies and 
 43.12  the proposed rules must be submitted to the senate and house 
 43.13  environment and natural resource committees at least 30 days 
 43.14  prior to being published in the State Register.  The amended 
 43.15  rules are effective for two years from the date of publication 
 43.16  of the rules in the State Register unless they are superseded by 
 43.17  permanent rules. 
 43.18     Sec. 40.  [WETLAND BANKING STUDY; REPORT.] 
 43.19     The commissioner of natural resources, in consultation with 
 43.20  the board of water and soil resources and the commissioner of 
 43.21  agriculture, shall ensure that the wetlands conservation 
 43.22  planning process currently under way includes a study of 
 43.23  alternative procedures and policies for improving the current 
 43.24  wetland banking system in the state.  The study and any 
 43.25  resulting recommendations must be reported to the appropriate 
 43.26  policy committees of the legislature by June 30, 1997, or upon 
 43.27  completion of the wetlands conservation planning final report, 
 43.28  whichever is later.  
 43.29     Sec. 41.  [LINCOLN-PIPESTONE CALCAREOUS FEN.] 
 43.30     The fen management plan prepared pursuant to Minnesota 
 43.31  Statutes, section 103G.223 for sections 5, 6, 8, and 17 of 
 43.32  T114N, R46W, and the Burr Well Field must be jointly developed 
 43.33  by the commissioner of natural resources and the 
 43.34  Lincoln-Pipestone rural water district.  A fen management plan 
 43.35  is not required to appropriate within the existing permitted 
 43.36  pumping rate of 750 gallons per minute or permitted volume of up 
 44.1   to 400,000,000 gallons per year. 
 44.2      Sec. 42.  [APPROPRIATION.] 
 44.3      (a) $130,000 is appropriated from the general fund to the 
 44.4   board of water and soil resources for providing assistance to 
 44.5   local governmental units in developing and implementing 
 44.6   comprehensive wetland protection and management plans under 
 44.7   Minnesota Statutes, section 103G.2243.  
 44.8      (b) $120,000 is appropriated from the general fund to the 
 44.9   board of water and soil resources for grants to local 
 44.10  governmental units for developing and implementing comprehensive 
 44.11  wetland protection and management plans under Minnesota 
 44.12  Statutes, section 103G.2243.  
 44.13     (c) $100,000 is appropriated from the general fund to the 
 44.14  board of water and soil resources for grants to local government 
 44.15  units to develop public ditch inventories, including maps and 
 44.16  histories of public ditch systems. 
 44.17     (d) $50,000 is appropriated from the general fund to the 
 44.18  board of water and soil resources for a grant to the association 
 44.19  of Minnesota counties to conduct workshops for public drainage 
 44.20  authorities. 
 44.21     Sec. 43.  [INSTRUCTION TO REVISOR.] 
 44.22     The revisor of statutes shall renumber Minnesota Statutes, 
 44.23  section 103G.005, subdivision 18, as section 103G.005, 
 44.24  subdivision 15a. 
 44.25     Sec. 44.  [REPEALER.] 
 44.26     Minnesota Statutes 1994, section 103G.2242, subdivision 13, 
 44.27  is repealed. 
 44.28     Sec. 45.  [EFFECTIVE DATE.] 
 44.29     This act is effective the day following final enactment, 
 44.30  except that section 24, subdivision 1, paragraph (e), does not 
 44.31  apply to replacement completed using wetland banking credits 
 44.32  established by a person who submitted a complete wetland banking 
 44.33  application to a local government unit by April 1, 1996.