1.1                          A bill for an act 
  1.2             relating to water; wetland protection and management; 
  1.3             amending Minnesota Statutes 1994, sections 103G.222; 
  1.4             103G.2241; 103G.2242, subdivisions 1, 6, 7, and 12; 
  1.5             103G.237, subdivision 4; and 103G.2372, subdivision 1; 
  1.6             repealing Minnesota Statutes 1994, section 103G.2242, 
  1.7             subdivisions 9 and 13. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 103G.222, is 
  1.10  amended to read: 
  1.11     103G.222 [REPLACEMENT OF WETLANDS.] 
  1.12     (a) After the effective date of the rules adopted under 
  1.13  section 103B.3355 or 103G.2242, whichever is later, wetlands 
  1.14  must not be drained or filled, wholly or partially, unless 
  1.15  replaced by restoring or creating wetland areas of at least 
  1.16  equal public value under a replacement plan approved as provided 
  1.17  in section 103G.2242, a replacement plan under a local 
  1.18  governmental unit's comprehensive wetland protection and 
  1.19  management plan approved by the board under section 103G.2242, 
  1.20  subdivision 1, paragraph (c), or, if a permit to mine is 
  1.21  required under section 93.481, under a mining reclamation plan 
  1.22  approved by the commissioner under the permit to mine.  Mining 
  1.23  reclamation plans shall apply the same principles and standards 
  1.24  for replacing wetlands by restoration or creation of wetland 
  1.25  areas that are applicable to mitigation plans approved as 
  1.26  provided in section 103G.2242. 
  2.1      (b) Replacement must be guided by the following principles 
  2.2   in descending order of priority: 
  2.3      (1) avoiding the direct or indirect impact of the activity 
  2.4   that may destroy or diminish the wetland; 
  2.5      (2) minimizing the impact by limiting the degree or 
  2.6   magnitude of the wetland activity and its implementation; 
  2.7      (3) rectifying the impact by repairing, rehabilitating, or 
  2.8   restoring the affected wetland environment; 
  2.9      (4) reducing or eliminating the impact over time by 
  2.10  preservation and maintenance operations during the life of the 
  2.11  activity; and 
  2.12     (5) compensating for the impact by replacing or providing 
  2.13  substitute wetland resources or environments. 
  2.14     For projects in wetlands outside shoreland areas, as 
  2.15  defined in section 103F.205, subdivision 4, that impact less 
  2.16  than 10,000 square feet in counties or watersheds with more than 
  2.17  80 percent of their presettlement wetlands and 4,356 square feet 
  2.18  in all other counties, the local government unit may make a 
  2.19  sequencing determination without written alternatives analysis 
  2.20  from the applicant. 
  2.21     (c) If a wetland is located in a cultivated field, then 
  2.22  replacement must be accomplished through restoration only 
  2.23  without regard to the priority order in paragraph (b), provided 
  2.24  that a deed restriction is placed on the altered wetland 
  2.25  prohibiting nonagricultural use for at least ten years.  
  2.26     (d) Restoration and replacement of wetlands must be 
  2.27  accomplished in accordance with the ecology of the landscape 
  2.28  area affected. 
  2.29     (e) Replacement shall be within the same watershed or 
  2.30  county as the impacted wetlands, as based on the wetland 
  2.31  evaluation in section 103G.2242, subdivision 2, except that 
  2.32  counties or watersheds in which 80 percent or more of the 
  2.33  presettlement wetland acreage is intact may accomplish 
  2.34  replacement in counties or watersheds in which 50 percent or 
  2.35  more of the presettlement wetland acreage has been filled, 
  2.36  drained, or otherwise degraded.  Wetlands impacted by public 
  3.1   transportation projects may be replaced statewide, provided they 
  3.2   are approved by the commissioner under an established wetland 
  3.3   banking system, or under the rules for wetland banking as 
  3.4   provided for under section 103G.2242. 
  3.5      (f) Except as provided in paragraph (g), for a wetland 
  3.6   located on nonagricultural land, replacement must be in the 
  3.7   ratio of two acres of replaced wetland for each acre of drained 
  3.8   or filled wetland. 
  3.9      (g) For a wetland located on agricultural land or in 
  3.10  counties or watersheds in which 80 percent or more of the 
  3.11  presettlement wetland acreage exists, replacement must be in the 
  3.12  ratio of one acre of replaced wetland for each acre of drained 
  3.13  or filled wetland.  
  3.14     (h) Wetlands that are restored or created as a result of an 
  3.15  approved replacement plan are subject to the provisions of this 
  3.16  section for any subsequent drainage or filling. 
  3.17     (i) Except in counties or watersheds where 80 percent or 
  3.18  more of the presettlement wetlands are intact, only wetlands 
  3.19  that have been restored from previously drained or filled 
  3.20  wetlands, wetlands created by excavation in nonwetlands, 
  3.21  wetlands created by dikes or dams along public or private 
  3.22  drainage ditches, or wetlands created by dikes or dams 
  3.23  associated with the restoration of previously drained or filled 
  3.24  wetlands may be used in a statewide banking program established 
  3.25  in rules adopted under section 103G.2242, subdivision 1.  
  3.26  Modification or conversion of nondegraded naturally occurring 
  3.27  wetlands from one type to another are not eligible for 
  3.28  enrollment in a statewide wetlands bank. 
  3.29     (j) The technical evaluation panel established under 
  3.30  section 103G.2242, subdivision 2, shall ensure that sufficient 
  3.31  time has occurred for the wetland to develop wetland 
  3.32  characteristics of soils, vegetation, and hydrology before 
  3.33  recommending that the wetland be deposited in the statewide 
  3.34  wetland bank.  If the technical evaluation panel has reason to 
  3.35  believe that the wetland characteristics may change 
  3.36  substantially, the panel shall postpone its recommendation until 
  4.1   the wetland has stabilized. 
  4.2      (k) This section and sections 103G.223 to 103G.2242, 
  4.3   103G.2364, and 103G.2365 apply to the state and its departments 
  4.4   and agencies. 
  4.5      (l) For wetland replacement ordered as part of or after 
  4.6   issuance of an order pursuant to section 103G.2372, the 
  4.7   replacement must be in a ratio double that which would otherwise 
  4.8   have been required by section 103G.222. 
  4.9      Sec. 2.  Minnesota Statutes 1994, section 103G.2241, is 
  4.10  amended to read: 
  4.11     103G.2241 [EXEMPTIONS.] 
  4.12     (a) Subject to the conditions in paragraph (b), a 
  4.13  replacement plan for wetlands is not required for:  
  4.14     (1) activities in a wetland that was planted with annually 
  4.15  seeded crops, was in a crop rotation seeding of pasture grasses 
  4.16  or legumes, or was required to be set aside to receive price 
  4.17  support or other payments under United States Code, title 7, 
  4.18  sections 1421 to 1469, in six of the last ten years prior to 
  4.19  January 1, 1991; 
  4.20     (2) activities in a wetland that is or has been enrolled in 
  4.21  the federal conservation reserve program under United States 
  4.22  Code, title 16, section 3831, that: 
  4.23     (i) was planted with annually seeded crops, was in a crop 
  4.24  rotation seeding, or was required to be set aside to receive 
  4.25  price support or payment under United States Code, title 7, 
  4.26  sections 1421 to 1469, in six of the last ten years prior to 
  4.27  being enrolled in the program; and 
  4.28     (ii) has not been restored with assistance from a public or 
  4.29  private wetland restoration program; 
  4.30     (3) activities necessary to repair and maintain existing 
  4.31  public or private drainage systems as long as wetlands that have 
  4.32  been in existence for more than 20 years are not drained; 
  4.33     (4) activities in a wetland that has received a commenced 
  4.34  drainage determination provided for by the federal Food Security 
  4.35  Act of 1985, that was made to the county agricultural 
  4.36  stabilization and conservation service office prior to September 
  5.1   19, 1988, and a ruling and any subsequent appeals or reviews 
  5.2   have determined that drainage of the wetland had been commenced 
  5.3   prior to December 23, 1985; 
  5.4      (5) activities exempted from federal regulation under 
  5.5   United States Code, title 33, section 1344(f); 
  5.6      (6) activities authorized under, and conducted in 
  5.7   accordance with, an applicable general permit issued by the 
  5.8   United States Army Corps of Engineers under section 404 of the 
  5.9   federal Clean Water Act, United States Code, title 33, section 
  5.10  1344, except the nationwide permit in Code of Federal 
  5.11  Regulations, title 33, section 330.5, paragraph (a), clause 
  5.12  (14), limited to when a new road crosses a wetland, and all of 
  5.13  clause (26); 
  5.14     (7) activities in a type 1 wetland on agricultural land, as 
  5.15  defined in United States Fish and Wildlife Circular No. 39 (1971 
  5.16  edition) except for bottomland hardwood type 1 wetlands; 
  5.17     (8) activities in a type 2 wetland that is two acres in 
  5.18  size or less located on agricultural land; 
  5.19     (9) activities in a wetland restored for conservation 
  5.20  purposes under a contract or easement providing the landowner 
  5.21  with the right to drain the restored wetland; 
  5.22     (10) activities in a wetland created solely as a result of: 
  5.23     (i) beaver dam construction; 
  5.24     (ii) blockage of culverts through roadways maintained by a 
  5.25  public or private entity; 
  5.26     (iii) actions by public entities that were taken for a 
  5.27  purpose other than creating the wetland; or 
  5.28     (iv) any combination of (i) to (iii); 
  5.29     (11) placement, maintenance, repair, enhancement, or 
  5.30  replacement of utility or utility-type service, including the 
  5.31  transmission, distribution, or furnishing, at wholesale or 
  5.32  retail, of natural or manufactured gas, electricity, telephone, 
  5.33  or radio service or communications if: 
  5.34     (i) the impacts of the proposed project on the hydrologic 
  5.35  and biological characteristics of the wetland have been avoided 
  5.36  and minimized to the extent possible; and 
  6.1      (ii) the proposed project significantly modifies or alters 
  6.2   less than one-half acre of wetlands; 
  6.3      (12) activities associated with routine maintenance of 
  6.4   utility and pipeline rights-of-way, provided the activities do 
  6.5   not result in additional intrusion into the wetland; 
  6.6      (13) alteration of a wetland associated with the operation, 
  6.7   maintenance, or repair of an interstate pipeline; 
  6.8      (14) temporarily crossing or entering a wetland to perform 
  6.9   silvicultural activities, including timber harvest as part of a 
  6.10  forest management activity, so long as the activity limits the 
  6.11  impact on the hydrologic and biologic characteristics of the 
  6.12  wetland; the activities do not result in the construction of 
  6.13  dikes, drainage ditches, tile lines, or buildings; and the 
  6.14  timber harvesting and other silvicultural practices do not 
  6.15  result in the drainage of the wetland or public waters; 
  6.16     (15) permanent access for forest roads across wetlands so 
  6.17  long as the activity limits the impact on the hydrologic and 
  6.18  biologic characteristics of the wetland; the construction 
  6.19  activities do not result in the access becoming a dike, drainage 
  6.20  ditch or tile line; with filling avoided wherever possible; and 
  6.21  there is no drainage of the wetland or public waters; 
  6.22     (16) draining or filling up to one-half acre of wetlands 
  6.23  for the repair, rehabilitation, or replacement of a previously 
  6.24  authorized, currently serviceable existing public road, provided 
  6.25  that minor deviations in the public road's configuration or 
  6.26  filled area, including those due to changes in materials, 
  6.27  construction techniques, or current construction codes or safety 
  6.28  standards, that are necessary to make repairs, rehabilitation, 
  6.29  or replacement are allowed if the wetland draining or filling 
  6.30  resulting from the repair, rehabilitation, or replacement is 
  6.31  minimized; 
  6.32     (17) emergency repair and normal maintenance and repair of 
  6.33  existing public works or private infrastructure, provided the 
  6.34  activity does not result in additional intrusion of the public 
  6.35  works into or draining or filling of the wetland and do not 
  6.36  result in the draining or filling, wholly or partially, of a 
  7.1   wetland; 
  7.2      (18) normal maintenance and minor repair of structures 
  7.3   causing no, including private crossings, provided the activity 
  7.4   does not result in additional intrusion of an existing structure 
  7.5   into or draining or filling of the wetland, and maintenance and 
  7.6   repair of private crossings that do not result in the draining 
  7.7   or filling, wholly or partially, of a wetland; 
  7.8      (19) duck blinds; 
  7.9      (20) aquaculture activities, including pond excavation and 
  7.10  construction and maintenance of associated access roads and 
  7.11  dikes authorized under, and conducted in accordance with, a 
  7.12  permit issued by the United States Army Corps of Engineers under 
  7.13  section 404 of the federal Clean Water Act, United States Code, 
  7.14  title 33, section 1344, but not including construction or 
  7.15  expansion of buildings; 
  7.16     (21) wild rice production activities, including necessary 
  7.17  diking and other activities authorized under a permit issued by 
  7.18  the United States Army Corps of Engineers under section 404 of 
  7.19  the federal Clean Water Act, United States Code, title 33, 
  7.20  section 1344; 
  7.21     (22) normal agricultural practices to control pests or 
  7.22  weeds, defined by rule as either noxious or secondary weeds, in 
  7.23  accordance with applicable requirements under state and federal 
  7.24  law, including established best management practices; 
  7.25     (23) agricultural activities in a wetland that is on 
  7.26  agricultural land annually enrolled in the federal Food, 
  7.27  Agricultural, Conservation, and Trade Act of 1990, United States 
  7.28  Code, title 16, section 3821, subsection (a), clauses (1) to 
  7.29  (3), as amended, and is subject to sections 1421 to 1424 of the 
  7.30  federal act in effect on January 1, 1991, except that land 
  7.31  enrolled in a federal farm program is eligible for easement 
  7.32  participation for those acres not already compensated under a 
  7.33  federal program; 
  7.34     (24) development projects and ditch improvement projects in 
  7.35  the state that have received preliminary or final plat approval, 
  7.36  or infrastructure that has been installed, or having local site 
  8.1   plan approval, conditional use permits, or similar official 
  8.2   approval by a governing body or government agency, within five 
  8.3   years before July 1, 1991.  In the seven-county metropolitan 
  8.4   area and in cities of the first and second class, plat approval 
  8.5   must be preliminary as approved by the appropriate governing 
  8.6   body; and 
  8.7      (25) activities projects that result in the draining or 
  8.8   filling of less than: 
  8.9      (i) 400 square feet of wetlands. in counties or watersheds 
  8.10  with less than 50 percent of their presettlement wetlands 
  8.11  remaining; 
  8.12     (ii) 400 square feet of wetlands in shoreland areas, as 
  8.13  defined in section 103F.205, subdivision 4, in all counties; 
  8.14     (iii) 1,000 square feet of wetlands in nonshoreland areas 
  8.15  of counties or watersheds with 50 to 80 percent of their 
  8.16  presettlement wetlands remaining; or 
  8.17     (iv) 7,500 square feet of wetlands in nonshoreland areas of 
  8.18  counties or watersheds with more than 80 percent of their 
  8.19  presettlement wetlands remaining. 
  8.20     This exemption applies if the cumulative wetland impact by 
  8.21  all persons on a wetland over time without replacement after 
  8.22  January 1, 1992, does not exceed five percent of the wetland's 
  8.23  area. 
  8.24     (b) For the purpose of paragraph (a), clause (16), 
  8.25  "currently serviceable" means usable as is or with some 
  8.26  maintenance, but not so degraded as to essentially require 
  8.27  reconstruction.  Paragraph (a), clause (16), authorizes the 
  8.28  repair, rehabilitation, or replacement of public roads destroyed 
  8.29  by storms, floods, fire, or other discrete events, provided the 
  8.30  repair, rehabilitation, or replacement is commenced or under 
  8.31  contract to commence within two years of the occurrence of the 
  8.32  destruction or damage. 
  8.33     (c) A person conducting an activity in a wetland under an 
  8.34  exemption in paragraph (a) shall ensure that: 
  8.35     (1) appropriate erosion control measures are taken to 
  8.36  prevent sedimentation of the water; 
  9.1      (2) the activity does not block fish passage in a 
  9.2   watercourse; and 
  9.3      (3) the activity is conducted in compliance with all other 
  9.4   applicable federal, state, and local requirements, including 
  9.5   best management practices and water resource protection 
  9.6   requirements established under chapter 103H. 
  9.7      Sec. 3.  Minnesota Statutes 1994, section 103G.2242, 
  9.8   subdivision 1, is amended to read: 
  9.9      Subdivision 1.  [RULES.] (a) By July 1, 1993, the board, in 
  9.10  consultation with the commissioner, shall adopt rules governing 
  9.11  the approval of wetland value replacement plans under this 
  9.12  section.  These rules must address the criteria, procedure, 
  9.13  timing, and location of acceptable replacement of wetland 
  9.14  values; may address the state establishment and administration 
  9.15  of a wetland banking program for public and private projects, 
  9.16  which may include provisions allowing monetary payment to the 
  9.17  wetland banking program for alteration of wetlands on 
  9.18  agricultural land; the methodology to be used in identifying and 
  9.19  evaluating wetland functions; the administrative, monitoring, 
  9.20  and enforcement procedures to be used; and a procedure for the 
  9.21  review and appeal of decisions under this section.  In the case 
  9.22  of peatlands, the replacement plan rules must consider the 
  9.23  impact on carbon balance described in the report required by 
  9.24  Laws 1990, chapter 587, and include the planting of trees or 
  9.25  shrubs. 
  9.26     (b) After the adoption of the rules, a replacement plan 
  9.27  must be approved by a resolution of the governing body of the 
  9.28  local government unit, consistent with the provisions of the 
  9.29  rules. 
  9.30     (c) The board may approve as an alternative to the rules 
  9.31  adopted under this subdivision a comprehensive wetland 
  9.32  protection and management plan developed by a local government 
  9.33  unit, provided that the plan: 
  9.34     (1) incorporates sections 103A.201, subdivision 2, and 
  9.35  103G.222; 
  9.36     (2) is adopted as part of an approved local water plan 
 10.1   under sections 103B.231 and 103B.311; and 
 10.2      (3) is adopted as part of the local government's official 
 10.3   controls. 
 10.4      (d) If the local government unit fails to apply the rules, 
 10.5   or fails to implement a local program under paragraph (c), the 
 10.6   government unit is subject to penalty as determined by the board.
 10.7      (e) The board may approve as an alternative to the rules 
 10.8   adopted under this subdivision a comprehensive wetland 
 10.9   protection and management plan developed by a local government 
 10.10  unit, provided that the plan: 
 10.11     (1) incorporates sections 103A.201, subdivision 2, and 
 10.12  103G.222; 
 10.13     (2) is adopted as part of an approved local water plan 
 10.14  under sections 103B.231 and 103B.311; and 
 10.15     (3) is adopted as part of the local government's official 
 10.16  controls. 
 10.17     (f) A comprehensive wetland protection and management plan 
 10.18  may: 
 10.19     (1) according to a procedure approved by the board, 
 10.20  classify wetlands based on an assessment of: 
 10.21     (i) wetland functions including:  floodwater retention, 
 10.22  nutrient assimilation, sediment entrapment, groundwater 
 10.23  recharge, low flow augmentation, aesthetics and recreation, 
 10.24  commercial uses, wildlife and fisheries habitat, and education; 
 10.25  and 
 10.26     (ii) the resulting public values; 
 10.27     (2) vary application of the sequencing standards of section 
 10.28  103G.222, paragraph (b), based on the classification; and 
 10.29     (3) in counties or watersheds having more than 80 percent 
 10.30  of their presettlement wetland acreage, vary the replacement 
 10.31  standards of section 103G.222, paragraphs (f) and (g), for 
 10.32  specific wetland impacts so long as there is no net loss of 
 10.33  wetland function and public values and biological diversity.  
 10.34     (g) Upon approval of a comprehensive wetland protection and 
 10.35  management plan by the board, the local government unit shall 
 10.36  make replacement decisions based on the approved plan. 
 11.1      (h) The board shall amend its rules adopted under this 
 11.2   subdivision to establish procedures and standards for reviewing 
 11.3   and approving comprehensive wetland protection and management 
 11.4   plans.  The rule amendments shall include the public value 
 11.5   classification system required by section 103B.3355.  The board 
 11.6   shall make these amendments using the emergency rulemaking 
 11.7   provisions of sections 14.29 to 14.36 of the administrative 
 11.8   procedures act.  The board shall also use these proceedings to 
 11.9   make the rules consistent with the wetlands conservation act of 
 11.10  1991. 
 11.11     Sec. 4.  Minnesota Statutes 1994, section 103G.2242, 
 11.12  subdivision 6, is amended to read: 
 11.13     Subd. 6.  [NOTICE OF APPLICATION.] (a) Except as provided 
 11.14  in paragraph paragraphs (b) and (c), within ten days of 
 11.15  receiving an application for approval of a replacement plan 
 11.16  under this section, a copy summary of the application must be 
 11.17  submitted to the board for publication in the Environmental 
 11.18  Quality Board Monitor and separate copies of the complete 
 11.19  application mailed to members of the technical evaluation panel, 
 11.20  individual members of the public who request a copy, the board 
 11.21  of supervisors of the soil and water conservation district, the 
 11.22  managers of the watershed district, the board of county 
 11.23  commissioners, if there is one, and the commissioner 
 11.24  of agriculture, and the mayors of the cities within the area 
 11.25  watershed.  At the same time, the local government unit must 
 11.26  give general notice to the public in a general circulation 
 11.27  newspaper within the area affected natural resources. 
 11.28     (b) Within ten days of receiving an application for 
 11.29  approval of a replacement plan under this section for an 
 11.30  activity affecting less than 10,000 square feet of wetland, a 
 11.31  summary of the application must be submitted for publication in 
 11.32  the Environmental Quality Board Monitor and separate copies 
 11.33  mailed to the members of the technical evaluation panel, 
 11.34  individual members of the public who request a copy, and the 
 11.35  managers of the watershed district, if applicable.  At the same 
 11.36  time, the local government unit must give general notice to the 
 12.1   public in a general circulation newspaper within the area 
 12.2   affected commissioner of natural resources. 
 12.3      (c) Revisions to replacement plan applications or approved 
 12.4   replacement plans must be renoticed in their entirety per 
 12.5   paragraphs (a) and (b) when: 
 12.6      (1) the revised replacement plan proposes wetland impacts 
 12.7   that are a ten percent or more increase from the original 
 12.8   replacement plan; or 
 12.9      (2) the revised replacement plan proposes that the location 
 12.10  of the impact to the wetland is changed by more than 500 feet. 
 12.11     Sec. 5.  Minnesota Statutes 1994, section 103G.2242, 
 12.12  subdivision 7, is amended to read: 
 12.13     Subd. 7.  [NOTICE OF DECISION.] (a) Except as provided in 
 12.14  paragraph (b), at least 30 Within ten days prior to the 
 12.15  effective date of the approval or denial of a replacement plan 
 12.16  under this section, a copy summary of the approval or denial 
 12.17  must be submitted for publication in the Environmental Quality 
 12.18  Board Monitor and separate copies mailed to members of the 
 12.19  technical evaluation panel, the applicant, the board, individual 
 12.20  members of the public who request a copy, the board of 
 12.21  supervisors of the soil and water conservation district, the 
 12.22  managers of the watershed district, the board of county 
 12.23  commissioners, if there is one, and the commissioner of 
 12.24  agriculture, and the mayors of the cities within the area 
 12.25  watershed natural resources.  Notice in the Environmental 
 12.26  Quality Board Monitor is not required for projects impacting 
 12.27  less than 10,000 square feet of wetlands. 
 12.28     (b) Within ten days of the decision approving or denying a 
 12.29  replacement plan under this section for an activity affecting 
 12.30  less than 10,000 square feet of wetland, a summary of the 
 12.31  approval or denial must be submitted for publication in the 
 12.32  Environmental Quality Board Monitor and separate copies mailed 
 12.33  to the applicant, individual members of the public who request a 
 12.34  copy, the members of the technical evaluation panel, and the 
 12.35  managers of the watershed district, if applicable.  At the same 
 12.36  time, the local government unit must give general notice to the 
 13.1   public in a general circulation newspaper within the area 
 13.2   affected. 
 13.3      Sec. 6.  Minnesota Statutes 1994, section 103G.2242, 
 13.4   subdivision 12, is amended to read: 
 13.5      Subd. 12.  [REPLACEMENT CREDITS.] (a) No public or private 
 13.6   wetland restoration, enhancement, or construction may be allowed 
 13.7   for replacement unless specifically designated for replacement 
 13.8   and paid for by the individual or organization performing the 
 13.9   wetland restoration, enhancement, or construction, and is 
 13.10  completed prior to any draining or filling of the wetland. 
 13.11     This subdivision Paragraph (a) does not apply to a wetland 
 13.12  whose owner has paid back with interest the individual or 
 13.13  organization restoring, enhancing, or constructing the wetland. 
 13.14     (b) Notwithstanding section 103G.222, paragraph (i), the 
 13.15  following actions are eligible for replacement credit as 
 13.16  determined by the local government unit, including enrollment in 
 13.17  a statewide wetlands bank: 
 13.18     (1) Reestablishment of permanent vegetative cover on a 
 13.19  wetland that was planted with annually seeded crops, was in a 
 13.20  crop rotation seeding of pasture grasses or legumes, or was 
 13.21  required to be set aside to receive price supports or other 
 13.22  payments under United States Code, title 7, sections 1421 to 
 13.23  1469, in six of the last ten years prior to January 1, 1991.  
 13.24  Replacement credit may not exceed 50 percent of the total 
 13.25  wetland area vegetatively restored. 
 13.26     (2) Buffer areas of permanent vegetative cover 
 13.27  reestablished on upland adjacent to restored replacement 
 13.28  wetlands.  The upland buffer must be established at the time of 
 13.29  wetland restoration and replacement credit for such buffers 
 13.30  cannot exceed 25 percent of the restored wetland area and can 
 13.31  only be used for replacement above a 1:1 ratio. 
 13.32     (3) Wetlands restored for conservation purposes under 
 13.33  terminated easements or contracts.  Up to 50 percent of the 
 13.34  restored wetland area is eligible for replacement credit.  
 13.35  Adjacent upland buffer areas reestablished to permanent 
 13.36  vegetative cover are eligible for replacement credit above a 1:1 
 14.1   ratio in an amount not to exceed 25 percent of the restored 
 14.2   wetland area. 
 14.3      Sec. 7.  Minnesota Statutes 1994, section 103G.237, 
 14.4   subdivision 4, is amended to read: 
 14.5      Subd. 4.  [COMPENSATION.] (a) The board shall award 
 14.6   compensation in an amount equal to 50 percent of the value of 
 14.7   the wetland, calculated by multiplying the acreage of the 
 14.8   wetland by the greater of: 
 14.9      (1) the average equalized estimated market value of 
 14.10  agricultural property in the township as established by the 
 14.11  commissioner of revenue at the time application for compensation 
 14.12  is made; or 
 14.13     (2) the assessed value per acre of the parcel containing 
 14.14  the wetland, based on the assessed value of the parcel as stated 
 14.15  on the most recent tax statement. 
 14.16     (b) A person who receives compensation under paragraph (a) 
 14.17  shall convey to the board a permanent conservation easement as 
 14.18  described in section 103F.515, subdivision 4.  An easement 
 14.19  conveyed under this paragraph is subject to correction and 
 14.20  enforcement under section 103F.515, subdivisions 8 and 9. 
 14.21     (c) When an inverse condemnation action brought against a 
 14.22  local government unit solely for its application of the wetlands 
 14.23  conservation act results in a final adjudication awarding a 
 14.24  claim against the local governmental unit, the amount awarded, 
 14.25  which may include expenses incurred by the local government unit 
 14.26  in defense of the action, shall be submitted to the legislative 
 14.27  claims commission for consideration for payment, so long as: 
 14.28     (1) the local government notifies the state at the 
 14.29  inception of the litigation and the local governmental unit 
 14.30  defends the litigation in good faith; and 
 14.31     (2) the court award arises from the reasonable application 
 14.32  of the state wetland conservation act law and rules by the local 
 14.33  government unit, rather than from local government decisions 
 14.34  based on local standards more restrictive than the state law and 
 14.35  rules. 
 14.36     If clause (1) is met, the state shall offer legal and 
 15.1   technical assistance to the local government in defense of the 
 15.2   action. 
 15.3      Sec. 8.  Minnesota Statutes 1994, section 103G.2372, 
 15.4   subdivision 1, is amended to read: 
 15.5      Subdivision 1.  [COMMISSIONER OF NATURAL RESOURCES.] The 
 15.6   commissioner of natural resources, conservation officers, and 
 15.7   peace officers shall enforce laws preserving and protecting 
 15.8   wetlands.  The commissioner of natural resources, a conservation 
 15.9   officer, or a peace officer may issue a cease and desist order 
 15.10  to stop any illegal activity adversely affecting a wetland.  In 
 15.11  the order, or by separate order, the commissioner, conservation 
 15.12  officer, or peace officer may require restoration or replacement 
 15.13  of the wetland, as determined by the local soil and water 
 15.14  conservation district.  The soil and water conservation district 
 15.15  shall endeavor to make their determination within 90 days from 
 15.16  the date a cease and desist order is issued. 
 15.17     Sec. 9.  [REPEALER.] 
 15.18     Minnesota Statutes 1994, section 103G.2242, subdivisions 9 
 15.19  and 13, are repealed.