1.1                          A bill for an act 
  1.2             relating to water; modifying provisions relating to 
  1.3             public waters and wetlands; amending Minnesota 
  1.4             Statutes 1994, sections 84.035, subdivisions 5 and 6; 
  1.5             103A.201, subdivision 2; 103F.612, subdivisions 2, 3, 
  1.6             5, 6, and 7; 103G.005, by adding subdivisions; 
  1.7             103G.127; 103G.205; 103G.221, subdivision 1; 103G.222; 
  1.8             103G.2241; 103G.2242, subdivisions 1, 2, 4, 6, 7, 9, 
  1.9             12, and by adding a subdivision; 103G.237, subdivision 
  1.10            4, and by adding a subdivision; 103G.2372, subdivision 
  1.11            1; 103G.2373; 103G.245, subdivision 2; and 115.03, by 
  1.12            adding a subdivision; Laws 1994, chapter 643, section 
  1.13            26, subdivision 3; repealing Minnesota Statutes 1994, 
  1.14            sections 103G.2242, subdivision 13; and 103G.2372, 
  1.15            subdivisions 2 and 3. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1994, section 84.035, 
  1.18  subdivision 5, is amended to read: 
  1.19     Subd. 5.  [ACTIVITIES IN PEATLAND SCIENTIFIC AND NATURAL 
  1.20  AREAS.] Areas designated in subdivision 4 as peatland scientific 
  1.21  and natural areas are subject to the following conditions: 
  1.22     (a) Except as provided in paragraph (b), all restrictions 
  1.23  otherwise applicable to scientific and natural areas designated 
  1.24  under section 86A.05, subdivision 5, apply to the surface use 
  1.25  and to any use of the mineral estate which would significantly 
  1.26  modify or alter the peatland water levels or flows, peatland 
  1.27  water chemistry, plant or animal species or communities, or 
  1.28  other natural features of the peatland scientific and natural 
  1.29  areas, including, but not limited to, the following prohibitions:
  1.30     (1) construction of any new public drainage systems after 
  2.1   the effective date of Laws 1991, chapter 354, or improvement or 
  2.2   repair to a public drainage system in existence on the effective 
  2.3   date of Laws 1991, chapter 354, under authority of chapter 103E, 
  2.4   or any other alteration of surface water or ground water levels 
  2.5   or flows unless specifically permitted under paragraph (b), 
  2.6   clause (5) or (6); 
  2.7      (2) removal of peat, sand, gravel, or other industrial 
  2.8   minerals; 
  2.9      (3) exploratory boring or other exploration or removal of 
  2.10  oil, natural gas, radioactive materials or metallic minerals 
  2.11  which would significantly modify or alter the peatland water 
  2.12  levels or flows, peatland water chemistry, plant or animal 
  2.13  species or communities, or natural features of the peatland 
  2.14  scientific and natural areas, except in the event of a national 
  2.15  emergency declared by Congress; 
  2.16     (4) commercial timber harvesting; 
  2.17     (5) construction of new corridors of disturbance, of the 
  2.18  kind defined in subdivision 3, after June 5, 1991; and 
  2.19     (6) ditching, draining, filling, or any other activities 
  2.20  which modify or alter the peatland water levels or flows, 
  2.21  peatland water chemistry, plant or animal species or 
  2.22  communities, or other natural features of the peatland 
  2.23  scientific and natural areas. 
  2.24     (b) The following activities are allowed: 
  2.25     (1) recreational activities, including hunting, fishing, 
  2.26  trapping, cross-country skiing, snowshoeing, nature observation, 
  2.27  or other recreational activities permitted in the management 
  2.28  plan approved by the commissioner; 
  2.29     (2) scientific and educational work and research; 
  2.30     (3) maintenance of corridors of disturbance, including 
  2.31  survey lines and preparation of winter roads, consistent with 
  2.32  protection of the peatland ecosystem; 
  2.33     (4) use of corridors of disturbance unless limited by a 
  2.34  management plan adopted by the commissioner under subdivision 6; 
  2.35     (5) improvements to a public drainage system in existence 
  2.36  on the effective date of Laws 1991, chapter 354, only when it is 
  3.1   for the protection and maintenance of the ecological integrity 
  3.2   of the peatland scientific and natural area and when included in 
  3.3   a management plan adopted by the commissioner under subdivision 
  3.4   6; 
  3.5      (6) repairs to a public drainage system in existence on the 
  3.6   effective date of Laws 1991, chapter 354, which crosses a 
  3.7   peatland scientific and natural area and is used for the 
  3.8   purposes of providing a drainage outlet for lands outside of the 
  3.9   peatland scientific and natural area, provided that there are no 
  3.10  other feasible and prudent alternative means of providing the 
  3.11  drainage outlet.  The commissioner shall cooperate with the 
  3.12  ditch authority in the determination of any feasible and prudent 
  3.13  alternatives.  No repairs which would significantly modify or 
  3.14  alter the peatland water levels or flows, peatland water 
  3.15  chemistry, plant or animal species or communities, or other 
  3.16  natural features of the peatland scientific and natural areas 
  3.17  shall be made unless approved by the commissioner; 
  3.18     (7) motorized uses that are engaged in, on corridors a 
  3.19  corridor of disturbance, if the corridor existed on or before 
  3.20  the effective date of Laws 1991, chapter 354, provided that 
  3.21  recreational motorized uses may occur only when the substrate is 
  3.22  frozen; 
  3.23     (8) control of forest insects, disease, and wildfires, as 
  3.24  described in a management plan adopted by the commissioner under 
  3.25  subdivision 6; and 
  3.26     (9) geological and geophysical surveys which would not 
  3.27  significantly modify or alter the peatland water levels or 
  3.28  flows, peatland water chemistry, plant or animal species or 
  3.29  communities, or other natural features of the peatland 
  3.30  scientific and natural areas. 
  3.31     Sec. 2.  Minnesota Statutes 1994, section 84.035, 
  3.32  subdivision 6, is amended to read: 
  3.33     Subd. 6.  [MANAGEMENT PLANS.] The commissioner shall 
  3.34  develop with the affected local government unit a management 
  3.35  plan for each peatland scientific and natural area designated 
  3.36  under section 84.036 in a manner prescribed by section 86A.09. 
  4.1      Sec. 3.  Minnesota Statutes 1994, section 103A.201, 
  4.2   subdivision 2, is amended to read: 
  4.3      Subd. 2.  [WETLANDS FINDINGS; PUBLIC INTEREST.] (a) 
  4.4   Wetlands identified in the state under section 103G.005, 
  4.5   subdivision 19, do not: 
  4.6      (1) grant the public additional or greater right of access 
  4.7   to the wetlands; 
  4.8      (2) diminish the right of ownership or usage of the beds 
  4.9   underlying the wetlands, except as otherwise provided by law; 
  4.10     (3) affect state law forbidding trespass on private lands; 
  4.11  and 
  4.12     (4) require the commissioner to acquire access to the 
  4.13  wetlands. 
  4.14     (b) The legislature finds that the wetlands of Minnesota 
  4.15  provide public value by conserving surface waters, maintaining 
  4.16  and improving water quality, preserving wildlife habitat, 
  4.17  providing recreational opportunities, reducing runoff, providing 
  4.18  for floodwater retention, reducing stream sedimentation, 
  4.19  contributing to improved subsurface moisture, helping moderate 
  4.20  climatic change, and enhancing the natural beauty of the 
  4.21  landscape, and are important to comprehensive water management, 
  4.22  and that it is in the public interest to:  
  4.23     (1) achieve no net loss in the quantity, quality, and 
  4.24  biological diversity of Minnesota's existing wetlands; 
  4.25     (2) increase the quantity, quality, and biological 
  4.26  diversity of Minnesota's wetlands by restoring or enhancing 
  4.27  diminished or drained wetlands; 
  4.28     (3) avoid direct or indirect impacts from activities that 
  4.29  destroy or diminish the quantity, quality, and biological 
  4.30  diversity of wetlands; and 
  4.31     (4) replace wetland values where avoidance of activity is 
  4.32  not feasible and prudent. 
  4.33     Sec. 4.  Minnesota Statutes 1994, section 103F.612, 
  4.34  subdivision 2, is amended to read: 
  4.35     Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
  4.36  the county where a wetland is located for designation of a 
  5.1   wetland preservation area in a high priority wetland area 
  5.2   identified in a comprehensive local water plan, as defined in 
  5.3   section 103B.3363, subdivision 3, and located within a high 
  5.4   priority wetland region designated by the board of water and 
  5.5   soil resources if the county chooses to accept wetland 
  5.6   preservation area applications.  The application must be made on 
  5.7   forms provided by the board.  If a wetland is located in more 
  5.8   than one county, the application must be submitted to the county 
  5.9   where the majority of the wetland is located.  
  5.10     (b) The application must contain at least the following 
  5.11  information and other information the board of soil and water 
  5.12  resources requires:  
  5.13     (1) legal description of the area to be approved, which 
  5.14  must include an upland strip at least 16-1/2 feet in width 
  5.15  around the perimeter of wetlands within the area and may include 
  5.16  total upland area of up to four acres for each acre of wetland; 
  5.17     (2) parcel identification numbers where designated by the 
  5.18  county auditor; 
  5.19     (3) name and address of the owner; 
  5.20     (4) a witnessed signature of the owner covenanting that the 
  5.21  land will be preserved as a wetland and will only be used in 
  5.22  accordance with conditions prescribed by the board of water and 
  5.23  soil resources; and 
  5.24     (5) a statement that the restrictive covenant will be 
  5.25  binding on the owner and the owner's successors or assigns, and 
  5.26  will run with the land.  
  5.27     (c) The upland strip required in paragraph (b), clause (1), 
  5.28  must be planted with permanent vegetation other than a noxious 
  5.29  weed. 
  5.30     (d) For registered property, the owner shall submit the 
  5.31  owner's duplicate certificate of title with the application.  
  5.32     Sec. 5.  Minnesota Statutes 1994, section 103F.612, 
  5.33  subdivision 3, is amended to read: 
  5.34     Subd. 3.  [REVIEW AND NOTICE.] Upon receipt of an 
  5.35  application, the county shall determine if all material required 
  5.36  by subdivision 2 has been submitted and, if so, shall determine 
  6.1   that the application is complete.  The term "date of application"
  6.2   means the date the application is determined to be complete by 
  6.3   the county.  The county shall send a copy of the application to 
  6.4   the county assessor, the regional development commission, where 
  6.5   applicable, the board of water and soil resources, and the soil 
  6.6   and water conservation district where the land is located.  The 
  6.7   soil and water conservation district shall prepare an advisory 
  6.8   statement of existing and potential preservation problems or 
  6.9   conflicts and send the statement to the owner of record and to 
  6.10  the county.  The county shall notify the landowner of the 
  6.11  acceptance or denial of the application within 60 days from the 
  6.12  date of the application. 
  6.13     Sec. 6.  Minnesota Statutes 1994, section 103F.612, 
  6.14  subdivision 5, is amended to read: 
  6.15     Subd. 5.  [COMMENCEMENT OF WETLAND PRESERVATION AREA.] The 
  6.16  wetland is a wetland preservation area commencing 30 days from 
  6.17  the date the county determines notifies the landowner of 
  6.18  acceptance of the application is complete under subdivision 3.  
  6.19     Sec. 7.  Minnesota Statutes 1994, section 103F.612, 
  6.20  subdivision 6, is amended to read: 
  6.21     Subd. 6.  [FEE.] The county may require an application fee, 
  6.22  not to exceed $50 to defray administrative costs of the program. 
  6.23     Sec. 8.  Minnesota Statutes 1994, section 103F.612, 
  6.24  subdivision 7, is amended to read: 
  6.25     Subd. 7.  [MAPS.] The board of water and soil resources 
  6.26  county shall maintain wetland preservation area maps 
  6.27  illustrating land covenanted as wetland preservation areas.  
  6.28     Sec. 9.  Minnesota Statutes 1994, section 103G.005, is 
  6.29  amended by adding a subdivision to read: 
  6.30     Subd. 2a.  [AGRICULTURAL LAND.] "Agricultural land" means: 
  6.31     (1) land used for horticultural, row, close grown, pasture, 
  6.32  and hayland crops; growing nursery stocks; and animal feedlots; 
  6.33  and 
  6.34     (2) contiguous land and buildings under the same ownership, 
  6.35  including farm yards, associated with activities under clause 
  6.36  (1). 
  7.1      Sec. 10.  Minnesota Statutes 1994, section 103G.005, is 
  7.2   amended by adding a subdivision to read: 
  7.3      Subd. 18a.  [SHORELAND WETLAND PROTECTION ZONE.] "Shoreland 
  7.4   wetland protection zone" means: 
  7.5      (1) land subject to a shoreland protection ordinance 
  7.6   approved under sections 103F.201 to 103F.221, and: 
  7.7      (i) adjacent to a lake, pond, or flowage; or 
  7.8      (ii) within 300 feet from the normal high water level of a 
  7.9   river or stream identified on the public waters inventory, under 
  7.10  section 103G.201; or 
  7.11     (2) for jurisdictions that have not adopted a shoreland 
  7.12  protection ordinance, land that is: 
  7.13     (i) within 1,000 feet from the normal high water level of a 
  7.14  lake, pond, or flowage that is at least ten acres in size within 
  7.15  municipalities and at least 25 acres in size in unincorporated 
  7.16  areas; or 
  7.17     (ii) within 300 feet from the normal high water level of a 
  7.18  river or stream identified on the public waters inventory, under 
  7.19  section 103G.201. 
  7.20     Sec. 11.  Minnesota Statutes 1994, section 103G.127, is 
  7.21  amended to read: 
  7.22     103G.127 [PERMIT PROGRAM UNDER SECTION 404 OF THE FEDERAL 
  7.23  CLEAN WATER ACT.] 
  7.24     Notwithstanding any other law to the contrary, the 
  7.25  commissioner in consultation with the board of water and soil 
  7.26  resources may adopt rules establishing a permit program for 
  7.27  regulating the discharge of dredged and fill material into the 
  7.28  waters of the state as necessary to obtain approval from the 
  7.29  United States Environmental Protection Agency to administer the 
  7.30  permit program under section 404 of the federal Clean Water Act, 
  7.31  United States Code, title 33, section 1344.  The rules may not 
  7.32  be more restrictive than the program under section 404, or state 
  7.33  law, if it is more restrictive than the federal program. 
  7.34     Sec. 12.  Minnesota Statutes 1994, section 103G.205, is 
  7.35  amended to read: 
  7.36     103G.205 [EFFECT OF PUBLIC WATERS DESIGNATION OR WETLANDS 
  8.1   STATUS.] 
  8.2      (a) The designation status of waters of this state as 
  8.3   public waters or wetlands does not: 
  8.4      (1) grant the public additional or greater right of access 
  8.5   to the waters or wetlands; 
  8.6      (2) diminish the right of ownership or usage of the beds 
  8.7   underlying the designated public waters, except as otherwise 
  8.8   provided by law; 
  8.9      (3) alter the private nature of the real property for 
  8.10  purposes of laws forbidding trespass on private land; 
  8.11     (4) alter the application of common law riparian rights; 
  8.12     (5) affect state law forbidding trespass on private lands; 
  8.13  and or 
  8.14     (4) (6) require the commissioner to acquire access to the 
  8.15  designated public waters or wetlands under section 97A.141.  
  8.16     (b) A person may not enter public waters or wetlands 
  8.17  located on private land unless authorized by law or the person, 
  8.18  the state, or other entity has a preexisting right of access by 
  8.19  water or has acquired the right or permission to enter the 
  8.20  public waters or wetlands from the landowner.  
  8.21     Sec. 13.  Minnesota Statutes 1994, section 103G.221, 
  8.22  subdivision 1, is amended to read: 
  8.23     Subdivision 1.  [DRAINAGE OF PUBLIC WATERS WETLANDS 
  8.24  GENERALLY PROHIBITED WITHOUT REPLACEMENT.] Except as provided in 
  8.25  this subdivision and subdivisions 2 and 3, public waters 
  8.26  wetlands may not be drained, and a permit authorizing drainage 
  8.27  of public waters wetlands may not be issued, unless the public 
  8.28  waters wetlands to be drained are replaced by wetlands that will 
  8.29  have equal or greater public value.  Road authorities may repair 
  8.30  and maintain roads within the road right-of-way, including 
  8.31  replacement of culverts, provided that:  
  8.32     (1) any filling of public waters wetlands is minimized; and 
  8.33     (2) the new culvert outlet is at essentially the same 
  8.34  control elevation as when the replaced culvert was in operation. 
  8.35     Sec. 14.  Minnesota Statutes 1994, section 103G.222, is 
  8.36  amended to read: 
  9.1      103G.222 [REPLACEMENT OF WETLANDS.] 
  9.2      (a) After the effective date of the rules adopted under 
  9.3   section 103B.3355 or 103G.2242, whichever is later, wetlands 
  9.4   must not be drained or filled, wholly or partially, unless 
  9.5   replaced by restoring or creating wetland areas of at least 
  9.6   equal public value under a replacement plan approved as provided 
  9.7   in section 103G.2242, a replacement plan under a local 
  9.8   governmental unit's comprehensive wetland protection and 
  9.9   management plan approved by the board adopted under section 
  9.10  103G.2242, subdivision 1, paragraph (c) 1a, or, if a permit to 
  9.11  mine is required under section 93.481, under a mining 
  9.12  reclamation plan approved by the commissioner under the permit 
  9.13  to mine.  Mining reclamation plans shall apply the same 
  9.14  principles and standards for replacing wetlands by restoration 
  9.15  or creation of wetland areas that are applicable to mitigation 
  9.16  plans approved as provided in section 103G.2242. 
  9.17     (b) Replacement must be guided by the following principles 
  9.18  in descending order of priority: 
  9.19     (1) avoiding the direct or indirect impact of the activity 
  9.20  that may destroy or diminish the wetland; 
  9.21     (2) minimizing the impact by limiting the degree or 
  9.22  magnitude of the wetland activity and its implementation; 
  9.23     (3) rectifying the impact by repairing, rehabilitating, or 
  9.24  restoring the affected wetland environment; 
  9.25     (4) reducing or eliminating the impact over time by 
  9.26  preservation and maintenance operations during the life of the 
  9.27  activity; and 
  9.28     (5) compensating for the impact by replacing or providing 
  9.29  substitute wetland resources or environments. 
  9.30     For a project involving the draining or filling of wetlands 
  9.31  in an amount not exceeding 10,000 square feet more than the 
  9.32  applicable amount in section 103G.2241, paragraph (a), clause 
  9.33  (25), the local government unit may make a sequencing 
  9.34  determination without a written alternatives analysis from the 
  9.35  applicant. 
  9.36     (c) If a wetland is located in a cultivated field, then 
 10.1   replacement must be accomplished through restoration only 
 10.2   without regard to the priority order in paragraph (b), provided 
 10.3   that a deed restriction is placed on the altered wetland 
 10.4   prohibiting nonagricultural use for at least ten years.  
 10.5      (d) Restoration and replacement of wetlands must be 
 10.6   accomplished in accordance with the ecology of the landscape 
 10.7   area affected. 
 10.8      (e) Replacement shall be within the same watershed or 
 10.9   county as the impacted wetlands, as based on the wetland 
 10.10  evaluation in section 103G.2242, subdivision 2, except that 
 10.11  counties or watersheds in which 80 percent or more of the 
 10.12  presettlement wetland acreage is intact may accomplish 
 10.13  replacement in counties or watersheds in which 50 percent or 
 10.14  more of the presettlement wetland acreage has been filled, 
 10.15  drained, or otherwise degraded.  Wetlands impacted by public 
 10.16  transportation projects may be replaced statewide, provided they 
 10.17  are approved by the commissioner under an established wetland 
 10.18  banking system, or under the rules for wetland banking as 
 10.19  provided for under section 103G.2242. 
 10.20     (f) Except as provided in paragraph (g), for a wetland 
 10.21  located on nonagricultural land, replacement must be based on 
 10.22  the public value as provided in paragraph (a), determined using 
 10.23  the factors listed in section 103B.3355, or in the ratio of two 
 10.24  acres of replaced wetland for each acre of drained or filled 
 10.25  wetland. 
 10.26     (g) For a wetland located on agricultural land or in 
 10.27  counties or watersheds, affected by a public transportation 
 10.28  project, or located in a county or watershed in which 80 percent 
 10.29  or more of the presettlement wetland acreage exists, replacement 
 10.30  must be based on the public value as provided in paragraph (a), 
 10.31  determined using the factors listed in section 103B.3355, or in 
 10.32  the ratio of one acre of replaced wetland for each acre of 
 10.33  drained or filled wetland.  
 10.34     (h) Wetlands that are restored or created as a result of an 
 10.35  approved replacement plan are subject to the provisions of this 
 10.36  section for any subsequent drainage or filling. 
 11.1      (i) Except in counties or watersheds where 80 percent or 
 11.2   more of the presettlement wetlands are intact, only wetlands 
 11.3   that have been restored from previously drained or filled 
 11.4   wetlands, wetlands created by excavation in nonwetlands, 
 11.5   wetlands created by dikes or dams along public or private 
 11.6   drainage ditches, or wetlands created by dikes or dams 
 11.7   associated with the restoration of previously drained or filled 
 11.8   wetlands may be used in a statewide banking program established 
 11.9   in rules adopted under section 103G.2242, subdivision 1.  
 11.10  Modification or conversion of nondegraded naturally occurring 
 11.11  wetlands from one type to another are not eligible for 
 11.12  enrollment in a statewide wetlands bank. 
 11.13     (j) The technical evaluation panel established under 
 11.14  section 103G.2242, subdivision 2, shall ensure that sufficient 
 11.15  time has occurred for the wetland to develop wetland 
 11.16  characteristics of soils, vegetation, and hydrology before 
 11.17  recommending that the wetland be deposited in the statewide 
 11.18  wetland bank.  If the technical evaluation panel has reason to 
 11.19  believe that the wetland characteristics may change 
 11.20  substantially, the panel shall postpone its recommendation until 
 11.21  the wetland has stabilized. 
 11.22     (k) This section and sections 103G.223 to 103G.2242, 
 11.23  103G.2364, and 103G.2365 apply to the state and its departments 
 11.24  and agencies. 
 11.25     (l) A person may satisfy replacement requirements under 
 11.26  this section by paying an amount equal to the lesser of:  (1) 
 11.27  the cost of the replacement credits to the local government 
 11.28  unit; or (2) twice the average value of land in the immediate 
 11.29  vicinity of the project, as determined by the county assessor.  
 11.30  The payment must be made to the local government unit if it has 
 11.31  established a wetland bank that is approved by the board.  The 
 11.32  local government unit shall use any money received under this 
 11.33  paragraph for making withdrawals from the wetland bank 
 11.34  administered by the local government unit for the purpose of 
 11.35  replacing lost wetland values. 
 11.36     (m) For projects involving filling of wetlands associated 
 12.1   with a public transportation project, public transportation 
 12.2   authorities may purchase credits from the mitigation bank 
 12.3   established with proceeds from Laws 1994, chapter 643, 
 12.4   subdivision 3(c).  Wetland credits may be purchased at the 
 12.5   lesser of the following:  (1) the cost of the state to establish 
 12.6   the credits; or (2) twice the average value of land in the 
 12.7   immediate vicinity of the road project as determined by the 
 12.8   county assessor. 
 12.9      Sec. 15.  Minnesota Statutes 1994, section 103G.2241, is 
 12.10  amended to read: 
 12.11     103G.2241 [EXEMPTIONS.] 
 12.12     (a) Subject to the conditions in paragraph (b), a 
 12.13  replacement plan for wetlands is not required for:  
 12.14     (1) activities in a wetland that was planted with annually 
 12.15  seeded crops, was in a crop rotation seeding of pasture grasses 
 12.16  or legumes, or was required to be set aside to receive price 
 12.17  support or other payments under United States Code, title 7, 
 12.18  sections 1421 to 1469, in six of the last ten years prior to 
 12.19  January 1, 1991; 
 12.20     (2) activities in a wetland that is or has been enrolled in 
 12.21  the federal conservation reserve program under United States 
 12.22  Code, title 16, section 3831, that: 
 12.23     (i) was planted with annually seeded crops, was in a crop 
 12.24  rotation seeding, or was required to be set aside to receive 
 12.25  price support or payment under United States Code, title 7, 
 12.26  sections 1421 to 1469, in six of the last ten years prior to 
 12.27  being enrolled in the program; and 
 12.28     (ii) has not been restored with assistance from a public or 
 12.29  private wetland restoration program; 
 12.30     (3) activities necessary to repair and maintain existing 
 12.31  public or private drainage systems as long as wetlands that have 
 12.32  been in existence for more than 20 25 years are not drained; 
 12.33     (4) activities in a wetland that has received a commenced 
 12.34  drainage determination provided for by the federal Food Security 
 12.35  Act of 1985, that was made to the county agricultural 
 12.36  stabilization and conservation service office prior to September 
 13.1   19, 1988, and a ruling and any subsequent appeals or reviews 
 13.2   have determined that drainage of the wetland had been commenced 
 13.3   prior to December 23, 1985; 
 13.4      (5) activities exempted from federal regulation under 
 13.5   United States Code, title 33, section 1344(f); 
 13.6      (6) activities authorized under, and conducted in 
 13.7   accordance with, an applicable general permit issued by the 
 13.8   United States Army Corps of Engineers under section 404 of the 
 13.9   federal Clean Water Act, United States Code, title 33, section 
 13.10  1344, except the nationwide permit in Code of Federal 
 13.11  Regulations, title 33, section 330.5, paragraph (a), clause 
 13.12  (14), limited to when a new road crosses a wetland, and all of 
 13.13  clause (26); 
 13.14     (7) activities in a type 1 wetland on agricultural land, as 
 13.15  defined in United States Fish and Wildlife Circular No. 39 (1971 
 13.16  edition), except for a bottomland hardwood type 1 wetlands 
 13.17  wetland, that is located on agricultural land or on land outside 
 13.18  the shoreland wetland protection zone; 
 13.19     (8) activities in a type 2 or 6 wetland that is two acres 
 13.20  in size or less located on agricultural land; 
 13.21     (9) activities in a wetland restored for conservation 
 13.22  purposes under a contract or easement providing the landowner 
 13.23  with the right to drain the restored wetland; 
 13.24     (10) activities in a wetland created solely as a result of: 
 13.25     (i) beaver dam construction; 
 13.26     (ii) blockage of culverts through roadways maintained by a 
 13.27  public or private entity; 
 13.28     (iii) actions by public entities that were taken for a 
 13.29  purpose other than creating the wetland; or 
 13.30     (iv) any combination of (i) to (iii); 
 13.31     (11) placement, maintenance, repair, enhancement, or 
 13.32  replacement of utility or utility-type service, including the 
 13.33  transmission, distribution, or furnishing, at wholesale or 
 13.34  retail, of natural or manufactured gas, electricity, telephone, 
 13.35  or radio service or communications if: 
 13.36     (i) the impacts of the proposed project on the hydrologic 
 14.1   and biological characteristics of the wetland have been avoided 
 14.2   and minimized to the extent possible; and 
 14.3      (ii) the proposed project significantly modifies or alters 
 14.4   less than one-half acre of wetlands; 
 14.5      (12) activities associated with routine maintenance of 
 14.6   utility and pipeline rights-of-way, provided the activities do 
 14.7   not result in additional intrusion into the wetland; 
 14.8      (13) alteration of a wetland associated with the operation, 
 14.9   maintenance, or repair of an interstate pipeline; 
 14.10     (14) temporarily crossing or entering a wetland to perform 
 14.11  silvicultural activities, including timber harvest and slash 
 14.12  deposition on frozen soil conducted as part of a forest 
 14.13  management activity, so long as the activity limits the impact 
 14.14  on the hydrologic and biologic characteristics of the wetland; 
 14.15  the activities do not result in the construction of dikes, 
 14.16  drainage ditches, tile lines, or buildings; and the timber 
 14.17  harvesting and other silvicultural practices do not result in 
 14.18  the drainage of the wetland or public waters; 
 14.19     (15) permanent access for forest roads across wetlands so 
 14.20  long as the activity limits the impact on the hydrologic and 
 14.21  biologic characteristics of the wetland; the construction 
 14.22  activities do not result in the access becoming a dike, drainage 
 14.23  ditch or tile line; with filling avoided wherever possible; and 
 14.24  there is no drainage of the wetland or public waters; 
 14.25     (16) draining or filling up to one-half acre of wetlands 
 14.26  for the repair, rehabilitation, or replacement of a previously 
 14.27  authorized, currently serviceable existing public road, provided 
 14.28  that this exemption applies only to: 
 14.29     (i) the existing road right-of-way; and 
 14.30     (ii) additional minor deviations in outside the public 
 14.31  road's configuration or filled area right-of-way, including 
 14.32  those due to changes in materials, construction techniques, or 
 14.33  current construction codes or safety standards, that are 
 14.34  necessary to make repairs, rehabilitation, or replacement are 
 14.35  allowed if the resulting wetland draining or filling resulting 
 14.36  from the repair, rehabilitation, or replacement is 
 15.1   minimized does not exceed one-half acre; 
 15.2      (17) emergency repair and normal maintenance and repair of 
 15.3   existing public works, provided the activity does not result in 
 15.4   additional intrusion of the public works into the wetland and do 
 15.5   not result in the draining or filling, wholly or partially, of a 
 15.6   wetland or private infrastructure, and updating of public or 
 15.7   private infrastructure as necessary to comply with requirements 
 15.8   under a law or ordinance; 
 15.9      (18) normal maintenance and minor repair of structures 
 15.10  causing no additional intrusion of an existing structure into 
 15.11  the wetland, and maintenance and repair of private crossings 
 15.12  that do not result in the draining or filling, wholly or 
 15.13  partially, of a wetland, including private crossings; 
 15.14     (19) duck blinds; 
 15.15     (20) aquaculture activities, including pond excavation and 
 15.16  construction and maintenance of associated access roads and 
 15.17  dikes authorized under, and conducted in accordance with, a 
 15.18  permit issued by the United States Army Corps of Engineers under 
 15.19  section 404 of the federal Clean Water Act, United States Code, 
 15.20  title 33, section 1344, but not including construction or 
 15.21  expansion of buildings; 
 15.22     (21) wild rice production activities, including necessary 
 15.23  diking and other activities authorized under a permit issued by 
 15.24  the United States Army Corps of Engineers under section 404 of 
 15.25  the federal Clean Water Act, United States Code, title 33, 
 15.26  section 1344; 
 15.27     (22) normal agricultural practices to control pests or 
 15.28  weeds, defined by rule as either noxious or secondary weeds, in 
 15.29  accordance with applicable requirements under state and federal 
 15.30  law, including established best management practices; 
 15.31     (23) activities in a wetland that is on agricultural land 
 15.32  annually enrolled in the federal Food, Agricultural, 
 15.33  Conservation, and Trade Act of 1990, United States Code, title 
 15.34  16, section 3821, subsection (a), clauses (1) to (3), as 
 15.35  amended, and is subject to sections 1421 to 1424 of the federal 
 15.36  act in effect on January 1, 1991, except that land enrolled in a 
 16.1   federal farm program is eligible for easement participation for 
 16.2   those acres not already compensated under a federal program; 
 16.3      (24) development projects and ditch improvement projects in 
 16.4   the state that have received preliminary or final plat approval, 
 16.5   or infrastructure that has been installed, or having local site 
 16.6   plan approval, conditional use permits, or similar official 
 16.7   approval by a governing body or government agency, within five 
 16.8   years before July 1, 1991.  In the seven-county metropolitan 
 16.9   area and in cities of the first and second class, plat approval 
 16.10  must be preliminary as approved by the appropriate governing 
 16.11  body; and 
 16.12     (25) activities that result in the draining or filling 
 16.13  of less than 400 square feet the following amounts of wetlands, 
 16.14  other than types 4 and 5 wetlands, as part of a project, 
 16.15  regardless of the total amount of wetlands drained or filled as 
 16.16  part of the project: 
 16.17     (i) 400 square feet of wetlands within a shoreland wetland 
 16.18  protection zone, except that a local government unit may, after 
 16.19  completing a functional assessment, increase this amount to 
 16.20  1,000 square feet provided the water body or watercourse of 
 16.21  concern is adequately protected; 
 16.22     (ii) 5,000 square feet of wetlands outside shoreland 
 16.23  wetland protection zones in counties with 80 percent or less of 
 16.24  their presettlement wetlands remaining; and 
 16.25     (iii) 10,000 square feet of wetlands outside shoreland 
 16.26  wetland protection zones in counties with greater than 80 
 16.27  percent of their presettlement wetlands remaining; and 
 16.28     (26) a replacement plan for wetlands is not required for 
 16.29  deposition of spoil resulting from excavation within a wetland 
 16.30  for wildlife habitat improvement purposes, if: 
 16.31     (i) the area of deposition does not exceed five percent of 
 16.32  the wetland area or one-half acre, whichever is less and the 
 16.33  spoil is stabilized and permanently seeded to prevent erosion; 
 16.34     (ii) the project does not have an adverse impact on any 
 16.35  species designated as endangered or threatened under state or 
 16.36  federal law; and 
 17.1      (iii) the project is approved by the soil and water 
 17.2   conservation district. 
 17.3      (b) The exemption in paragraph (a), clause (3), allows 
 17.4   maintenance that results in filling of wetlands that have been 
 17.5   in existence for more than 25 years when the wetlands are 
 17.6   located within the right-of-way acreage of the ditch or within a 
 17.7   one-rod width on either side of the top of the ditch, whichever 
 17.8   is greater, the filling is limited to the side-casting of spoil 
 17.9   materials resulting from the maintenance, and the spoil 
 17.10  deposition area is permanently seeded into grass after 
 17.11  maintenance activities are completed. 
 17.12     (c) For the purpose of paragraph (a), clause (16), 
 17.13  "currently serviceable" means usable as is or with some 
 17.14  maintenance, but not so degraded as to essentially require 
 17.15  reconstruction.  Paragraph (a), clause (16), authorizes the 
 17.16  repair, rehabilitation, or replacement of public roads destroyed 
 17.17  by storms, floods, fire, or other discrete events, provided the 
 17.18  repair, rehabilitation, or replacement is commenced or under 
 17.19  contract to commence within two years of the occurrence of the 
 17.20  destruction or damage. 
 17.21     (c) (d) In applying the exemption in paragraph (a), clause 
 17.22  (25), the local government unit shall determine the scope of the 
 17.23  project and the wetlands to be replaced.  In making this 
 17.24  determination, the local government unit may request assistance 
 17.25  from the technical evaluation panel established under section 
 17.26  103G.2242, subdivision 2. 
 17.27     (e) A person conducting an activity in a wetland under an 
 17.28  exemption in paragraph (a) shall ensure that: 
 17.29     (1) appropriate erosion control measures are taken to 
 17.30  prevent sedimentation of the water; 
 17.31     (2) the activity does not block fish passage in a 
 17.32  watercourse; and 
 17.33     (3) the activity is conducted in compliance with all other 
 17.34  applicable federal, state, and local requirements, including 
 17.35  best management practices and water resource protection 
 17.36  requirements established under chapter 103H. 
 18.1      (f) A local government unit may expand the application of 
 18.2   paragraph (a), clauses (7) and (8), to additional acreage, 
 18.3   including types 1, 2, and 6 wetlands that are part of a larger 
 18.4   wetland system, when the additional acreage is part of a 
 18.5   conservation plan prepared by the local soil and water 
 18.6   conservation district, the additional draining or filling is 
 18.7   necessary for efficient operation of the farm, and wetlands 
 18.8   other than types 1, 2, and 6 are not drained or filled. 
 18.9      (g) The exemption in paragraph (a), clause (25), no longer 
 18.10  applies to a wetland when the cumulative area drained or filled 
 18.11  since January 1, 1992, is the greater of: 
 18.12     (1) the applicable area listed in paragraph (a), clause 
 18.13  (25), items (i) to (iii); or 
 18.14     (2) five percent of the total area of the wetland. 
 18.15     (h) As used in paragraph (a), clause (17), "infrastructure" 
 18.16  means stormwater and sanitary sewer piping, individual sewage 
 18.17  treatment systems, outfalls, inlets, culverts, bridges, and any 
 18.18  other work defined specifically by a local government unit as 
 18.19  constituting a capital improvement, but does not include roads 
 18.20  or drainage ditches. 
 18.21     Sec. 16.  [LINCOLN-PIPESTONE CALCAREOUS FEN.] 
 18.22     The fen management plan required by Minnesota Statutes, 
 18.23  section 103G.223 for sections 5, 6, 8, and 17 of T114N, R46W, 
 18.24  and the Burr Well Field must be jointly developed by the 
 18.25  commissioner of natural resources and the Lincoln-Pipestone 
 18.26  rural water district and must provide that water will be 
 18.27  supplied to the existing customers for domestic use.  Existing 
 18.28  livestock capacity and planned capacity that is under 
 18.29  construction before August 1, 1995, must be included as domestic 
 18.30  use. 
 18.31     Sec. 17.  Minnesota Statutes 1994, section 103G.2242, 
 18.32  subdivision 1, is amended to read: 
 18.33     Subdivision 1.  [RULES.] (a) By July 1, 1993, the board, in 
 18.34  consultation with the commissioner, shall adopt rules governing 
 18.35  the approval of wetland value replacement plans under this 
 18.36  section.  These rules must address the criteria, procedure, 
 19.1   timing, and location of acceptable replacement of wetland 
 19.2   values; may address the state establishment and administration 
 19.3   of a wetland banking program for public and private projects, 
 19.4   which may include provisions allowing monetary payment to the 
 19.5   wetland banking program for alteration of wetlands on 
 19.6   agricultural land; the methodology to be used in identifying and 
 19.7   evaluating wetland functions; the administrative, monitoring, 
 19.8   and enforcement procedures to be used; and a procedure for the 
 19.9   review and appeal of decisions under this section.  In the case 
 19.10  of peatlands, the replacement plan rules must consider the 
 19.11  impact on carbon balance described in the report required by 
 19.12  Laws 1990, chapter 587, and include the planting of trees or 
 19.13  shrubs. 
 19.14     (b) After the adoption of the rules, a replacement plan 
 19.15  must be approved by a resolution of the governing body of the 
 19.16  local government unit, consistent with the provisions of the 
 19.17  rules. 
 19.18     (c) The board may approve as an alternative to the rules 
 19.19  adopted under this subdivision a comprehensive wetland 
 19.20  protection and management plan developed by a local government 
 19.21  unit, provided that the plan: 
 19.22     (1) incorporates sections 103A.201, subdivision 2, and 
 19.23  103G.222; 
 19.24     (2) is adopted as part of an approved local water plan 
 19.25  under sections 103B.231 and 103B.311; and 
 19.26     (3) is adopted as part of the local government's official 
 19.27  controls. 
 19.28     (d) If the local government unit fails to apply the rules, 
 19.29  or fails to implement a local program comprehensive wetland 
 19.30  protection and management plan under paragraph (c) subdivision 
 19.31  1a, the government unit is subject to penalty as determined by 
 19.32  the board. 
 19.33     Sec. 18.  Minnesota Statutes 1994, section 103G.2242, is 
 19.34  amended by adding a subdivision to read: 
 19.35     Subd. 1a.  [COMPREHENSIVE WETLAND PROTECTION AND MANAGEMENT 
 19.36  PLANS.] (a) As an alternative to implementing the rules adopted 
 20.1   under this section, a local government unit may adopt a 
 20.2   comprehensive wetland protection and management plan, provided 
 20.3   the plan: 
 20.4      (1) reflects the local conditions in the plan area, 
 20.5   including the amount of upland, waters, and wetlands in the area 
 20.6   and the need for transportation, utilities, and other public and 
 20.7   private infrastructure in the area; and 
 20.8      (2) is adopted by ordinance in accordance with the process 
 20.9   required for adoption of comprehensive plans under chapter 394 
 20.10  and the following additional requirements: 
 20.11     (i) not less than 60 days before the public hearing 
 20.12  required by section 375.51, subdivision 1, the local government 
 20.13  unit shall provide written notice of the hearing to the 
 20.14  executive director of the board and the commissioners of natural 
 20.15  resources and the pollution control agency; 
 20.16     (ii) the local government unit shall prepare and make 
 20.17  available to the public a written report addressing the issues 
 20.18  raised in comments received on the proposed plan; 
 20.19     (iii) at the time publication is made of the adopted plan 
 20.20  under section 375.51, subdivision 3, a copy of the plan must 
 20.21  also be mailed to the executive director of the board and the 
 20.22  commissioners of natural resources and the pollution control 
 20.23  agency; and 
 20.24     (iv) notice of the availability of the report required in 
 20.25  clause (2) must be included in the publication under section 
 20.26  375.51, subdivision 3, and mailed with the plan under clause (3).
 20.27     (b) A comprehensive wetland protection and management plan 
 20.28  may: 
 20.29     (1) provide for classification of wetlands based on an 
 20.30  assessment of the wetland functions listed in section 103B.3355 
 20.31  and the resulting public values, both positive and negative, 
 20.32  related to wetlands, specifically and collectively, in the plan 
 20.33  area; 
 20.34     (2) modify the exemptions in section 103G.2241 and 
 20.35  replacement criteria in section 103G.222 and this section in 
 20.36  accordance with paragraph (c); 
 21.1      (3) allow replacement credit for any project that increases 
 21.2   the public value of wetlands, including activities on adjacent 
 21.3   upland areas, based on the classification; 
 21.4      (4) establish a local wetland bank that is not subject to 
 21.5   rules adopted by the board, provided the bank is administered so 
 21.6   as to ensure no net loss of wetland values, based on the 
 21.7   classification; and 
 21.8      (5) in consultation with the technical review panel, map or 
 21.9   provide a procedure for mapping wetlands and classifications of 
 21.10  wetlands in the plan area. 
 21.11     (c) The exemptions in section 103G.2241 and the replacement 
 21.12  criteria in section 103G.222 and this section are presumed to 
 21.13  apply in the plan area.  The local government unit may rebut 
 21.14  this presumption and modify these exemptions and replacement 
 21.15  criteria to account for local conditions, provided the 
 21.16  modification maintains the overall effectiveness in the plan 
 21.17  area of the wetland functions listed in section 103B.3355. 
 21.18     (d) The local government unit shall make replacement 
 21.19  decisions based on the plan. 
 21.20     (e) Upon request, the board shall provide technical 
 21.21  assistance to local government units developing plans and may 
 21.22  develop guidelines to assist local government units in 
 21.23  developing plans.  Any guidelines developed by the board are not 
 21.24  binding on local government units. 
 21.25     (f) The plan is not effective until it has been approved by 
 21.26  the board.  The legislature intends for the board, agencies of 
 21.27  the state, and local units of government to participate in the 
 21.28  local planning process under paragraph (a).  The board shall 
 21.29  review the plan and make a decision on approval or disapproval 
 21.30  within 90 days after submission of the plan to the board.  The 
 21.31  board shall give deference to the decisions resulting from the 
 21.32  planning process under paragraph (a).  The board shall approve a 
 21.33  plan unless the board determines that the plan would not 
 21.34  maintain the overall effectiveness in the plan area of the 
 21.35  wetland functions listed in section 103B.3355.  Disapproval of a 
 21.36  plan by the board must be based on relevant scientific 
 22.1   principles and the conditions existing in the plan area.  The 
 22.2   board may not disapprove a plan unless the reasons for the 
 22.3   disapproval were raised during the planning process in paragraph 
 22.4   (a).  The board shall forward any disapproval with the specific 
 22.5   reasons for disapproval to the local government unit.  The local 
 22.6   government unit may change the plan and resubmit it to the board 
 22.7   or, within 90 days after receipt of the disapproval, appeal the 
 22.8   board's decision to the district court with jurisdiction over 
 22.9   some or all of the plan area. 
 22.10     (g) In approving a plan, the board shall advise the local 
 22.11  government unit of those elements of the plan that are more 
 22.12  restrictive than state law and rules for purposes of section 
 22.13  103G.237, subdivision 5. 
 22.14     (h) After a plan is approved by the board, all wetlands, 
 22.15  whether owned by the state, a political subdivision, or any 
 22.16  other entity, public or private, are subject to the plan, except 
 22.17  that a state agency with jurisdiction over land where the 
 22.18  wetlands are located may elect to comply with sections 103G.222 
 22.19  to 103G.237 by notification in writing to the board and the 
 22.20  local government unit.  If the state agency elects not to be 
 22.21  governed by the local plan, it must notify the board and the 
 22.22  local government unit in writing of all activities affecting 
 22.23  wetlands within the area covered by the plan with a detailed 
 22.24  description of how the state agency's proposed activities are in 
 22.25  conformance with state law.  The board shall enforce state 
 22.26  agency compliance by a cease and desist order stating how the 
 22.27  proposed or ongoing activity must be changed to be in compliance 
 22.28  with state law. 
 22.29     (i) The board shall provide state cost-share funds to local 
 22.30  government units for activities related to adopting and 
 22.31  implementing a plan in the same manner as provided to local 
 22.32  government units for implementing sections 103G.222 to 103G.237 
 22.33  and rules adopted by the board.  Funds available for local units 
 22.34  of government for implementation, but not utilized before the 
 22.35  effective date of this section, may be used for the planning 
 22.36  process if a local government unit notifies the board of the 
 23.1   intent to adopt a plan by June 30, 1995.  A local government 
 23.2   unit that notifies the board of the intent to adopt a plan shall 
 23.3   comply with sections 103G.222 to 103G.237 and rules consistent 
 23.4   with these sections until the plan is adopted. 
 23.5      Sec. 19.  Minnesota Statutes 1994, section 103G.2242, 
 23.6   subdivision 2, is amended to read: 
 23.7      Subd. 2.  [EVALUATION.] Questions concerning the public 
 23.8   value, location, size, or type of a wetland shall be submitted 
 23.9   to and determined by a technical evaluation panel after an 
 23.10  on-site inspection.  The technical evaluation panel shall be 
 23.11  composed of a technical professional employee of the board, a 
 23.12  technical professional employee of the local soil and water 
 23.13  conservation district or districts, and a technical professional 
 23.14  with expertise in water resources management appointed by the 
 23.15  local government unit.  The panel shall use the "Federal Manual 
 23.16  for Identifying and Delineating Jurisdictional Wetlands" 
 23.17  (January 1989) "U.S. Army Corps of Engineers Wetland Delineation 
 23.18  Manual" (January 1987).  The panel shall provide the wetland 
 23.19  determination to the local government unit that must approve a 
 23.20  replacement plan under this section, and may recommend approval 
 23.21  or denial of the plan.  The authority must consider and include 
 23.22  the decision of the technical evaluation panel in their approval 
 23.23  or denial of a plan. 
 23.24     Sec. 20.  Minnesota Statutes 1994, section 103G.2242, 
 23.25  subdivision 4, is amended to read: 
 23.26     Subd. 4.  [DECISION.] Upon receiving and considering all 
 23.27  required data, the local government unit approving a replacement 
 23.28  plan must act on all applications for plan approval within 60 
 23.29  days.  A local government unit may extend the 60-day period for 
 23.30  an additional 30 days by notifying the applicant in writing of 
 23.31  the delay, the reasons for the delay, and the expected date of 
 23.32  final action on the application.  If the local government unit 
 23.33  fails to act on an application within the 60-day period or any 
 23.34  extension period, the replacement plan shall be deemed approved. 
 23.35     Sec. 21.  Minnesota Statutes 1994, section 103G.2242, 
 23.36  subdivision 6, is amended to read: 
 24.1      Subd. 6.  [NOTICE OF APPLICATION.] (a) Except as provided 
 24.2   in paragraph (b), within ten days of receiving an application 
 24.3   for approval of a replacement plan under this section, a copy 
 24.4   summary of the application must be submitted to the board for 
 24.5   publication in the Environmental Quality Board Monitor and 
 24.6   separate copies of the complete application mailed to the 
 24.7   members of the technical evaluation panel, individual members of 
 24.8   the public who request a copy, the board of supervisors of the 
 24.9   soil and water conservation district, the managers of the 
 24.10  watershed district if one exists, the board of county 
 24.11  commissioners, and the commissioner of agriculture, and the 
 24.12  mayors of the cities within the area watershed.  At the same 
 24.13  time, the local government unit must give general notice to the 
 24.14  public in a general circulation newspaper within the area 
 24.15  affected natural resources. 
 24.16     (b) Within ten days of receiving an application for 
 24.17  approval of a replacement plan under this section for an 
 24.18  activity affecting less than 10,000 square feet of wetland, a 
 24.19  summary of the application must be submitted for publication in 
 24.20  the Environmental Quality Board Monitor and separate copies 
 24.21  mailed to the members of the technical evaluation panel, 
 24.22  individual members of the public who request a copy, and the 
 24.23  managers of the watershed district, if applicable.  At the same 
 24.24  time, the local government unit must give general notice to the 
 24.25  public in a general circulation newspaper within the area 
 24.26  affected commissioner of natural resources. 
 24.27     (c) For the purpose of this subdivision, "application" 
 24.28  includes a revised application for replacement plan approval and 
 24.29  an application for a revision to an approved replacement plan if:
 24.30     (1) the wetland area to be drained or filled under the 
 24.31  revised replacement plan is at least ten percent larger than the 
 24.32  area to be drained or filled under the original replacement 
 24.33  plan; or 
 24.34     (2) the wetland area to be drained or filled under the 
 24.35  revised replacement is located more than 500 feet from the area 
 24.36  to be drained or filled under the original replacement plan. 
 25.1      Sec. 22.  Minnesota Statutes 1994, section 103G.2242, 
 25.2   subdivision 7, is amended to read: 
 25.3      Subd. 7.  [NOTICE OF DECISION.] (a) Except as provided in 
 25.4   paragraph (b), at least 30 Within ten days prior to the 
 25.5   effective date of the approval or denial of a replacement plan 
 25.6   under this section, a copy summary of the approval or denial 
 25.7   must be submitted for publication in the Environmental Quality 
 25.8   Board Monitor and separate copies mailed to members of the 
 25.9   technical evaluation panel, the applicant, the board, individual 
 25.10  members of the public who request a copy, the board of 
 25.11  supervisors of the soil and water conservation district, the 
 25.12  managers of the watershed district, the board of county 
 25.13  commissioners, if one exists, and the commissioner of 
 25.14  agriculture, and the mayors of the cities within the area 
 25.15  watershed natural resources.  Notice in the Environmental 
 25.16  Quality Board Monitor is not required for projects involving the 
 25.17  draining or filling of less than 10,000 square feet of wetlands. 
 25.18     (b) Within ten days of the decision approving or denying a 
 25.19  replacement plan under this section for an activity affecting 
 25.20  less than 10,000 square feet of wetland, a summary of the 
 25.21  approval or denial must be submitted for publication in the 
 25.22  Environmental Quality Board Monitor and separate copies mailed 
 25.23  to the applicant, individual members of the public who request a 
 25.24  copy, the members of the technical evaluation panel, and the 
 25.25  managers of the watershed district, if applicable.  At the same 
 25.26  time, the local government unit must give general notice to the 
 25.27  public in a general circulation newspaper within the area 
 25.28  affected. 
 25.29     Sec. 23.  Minnesota Statutes 1994, section 103G.2242, 
 25.30  subdivision 9, is amended to read: 
 25.31     Subd. 9.  [APPEAL.] Appeal of the a replacement plan, 
 25.32  exemption, or no-loss decision may be obtained by mailing 
 25.33  a notice of appeal petition and payment of a filing fee of $200 
 25.34  to the board within 30 15 days after the postmarked date of the 
 25.35  mailing specified in subdivision 7.  The local government unit 
 25.36  may require the petitioner to post a bond in an amount not to 
 26.1   exceed $500.  If appeal is not sought within 30 days, the 
 26.2   decision becomes final.  Appeal may be made by the wetland 
 26.3   owner, by any of those to whom notice is required to be mailed 
 26.4   under subdivision 7, or by 100 residents of the county in which 
 26.5   a majority of the wetland is located.  Within 30 days after 
 26.6   receiving a petition, the board shall decide whether to grant 
 26.7   the petition and hear the appeal.  The board shall grant the 
 26.8   petition unless the board finds that the appeal is meritless, 
 26.9   trivial, or brought solely for the purposes of delay; that the 
 26.10  petitioner has not exhausted all local administrative remedies; 
 26.11  or that the petitioner has not posted a bond if required by the 
 26.12  local government unit.  In determining whether to grant the 
 26.13  appeal, the board shall also consider the size of the wetland, 
 26.14  other factors in controversy, any patterns of similar acts by 
 26.15  the local government unit or petitioner, and the consequences of 
 26.16  the delay resulting from the appeal.  If the petition is 
 26.17  accepted, the filing fee will be retained by the board to defray 
 26.18  administrative costs.  If the appeal is denied, the filing fee 
 26.19  must be returned to the petitioner.  All appeals must be heard 
 26.20  by the committee for dispute resolution of the board, and a 
 26.21  decision made within 60 days of the appeal.  The decision must 
 26.22  be served by mail on the parties to the appeal, and is not 
 26.23  subject to the provisions of chapter 14.  The A decision whether 
 26.24  to grant a petition for appeal and a decision on the merits of 
 26.25  an appeal must be considered the decision of an agency in a 
 26.26  contested case for purposes of judicial review under sections 
 26.27  14.63 to 14.69. 
 26.28     Sec. 24.  Minnesota Statutes 1994, section 103G.2242, 
 26.29  subdivision 12, is amended to read: 
 26.30     Subd. 12.  [REPLACEMENT CREDITS.] (a) No public or private 
 26.31  wetland restoration, enhancement, or construction may be allowed 
 26.32  for replacement unless specifically designated for replacement 
 26.33  and paid for by the individual or organization performing the 
 26.34  wetland restoration, enhancement, or construction, and is 
 26.35  completed prior to any draining or filling of the wetland. 
 26.36     This subdivision Paragraph (a) does not apply to a wetland 
 27.1   whose owner has paid back with interest the individual or 
 27.2   organization restoring, enhancing, or constructing the wetland. 
 27.3      (b) Notwithstanding section 103G.222, paragraph (i), the 
 27.4   following actions are eligible for replacement credit as 
 27.5   determined by the local government unit, including enrollment in 
 27.6   a statewide wetlands bank: 
 27.7      (1) Reestablishment of permanent vegetative cover on a 
 27.8   wetland that was planted with annually seeded crops, was in a 
 27.9   crop rotation seeding of pasture grasses or legumes, or was 
 27.10  required to be set aside to receive price supports or other 
 27.11  payments under United States Code, title 7, sections 1421 to 
 27.12  1469, in six of the last ten years prior to January 1, 1991.  
 27.13  Replacement credit may not exceed 50 percent of the total 
 27.14  wetland area vegetatively restored. 
 27.15     (2) Buffer areas of permanent vegetative cover established 
 27.16  on upland adjacent to replacement wetlands.  The upland buffer 
 27.17  must be established at the time of wetland mitigation and 
 27.18  replacement credit for such buffers cannot exceed 75 percent of 
 27.19  the mitigated wetland area and can only be used for replacement 
 27.20  above a 1:1 ratio. 
 27.21     (3) Wetlands restored for conservation purposes under 
 27.22  terminated easements or contracts.  Up to 75 percent of the 
 27.23  restored wetland area is eligible for replacement credit.  
 27.24  Adjacent upland buffer areas reestablished to permanent 
 27.25  vegetative cover are eligible for replacement credit above a 1:1 
 27.26  ratio in an amount not to exceed 25 percent of the restored 
 27.27  wetland area. 
 27.28     (4) Water quality treatment ponds constructed to pretreat 
 27.29  storm water runoff prior to discharge to wetlands, public 
 27.30  waters, or other water bodies.  The water quality treatment 
 27.31  ponds must be associated with an ongoing or proposed project 
 27.32  that will impact a wetland.  Replacement credit for the 
 27.33  treatment ponds may not exceed 75 percent of the treatment pond 
 27.34  area and may only be used for replacement above a 1:1 ratio. 
 27.35     Sec. 25.  Minnesota Statutes 1994, section 103G.237, 
 27.36  subdivision 4, is amended to read: 
 28.1      Subd. 4.  [COMPENSATION.] (a) The board shall award 
 28.2   compensation in an amount equal to the greater of: 
 28.3      (1) 50 percent of the value of the wetland, calculated by 
 28.4   multiplying the acreage of the wetland by the greater of: 
 28.5      (1) (i) the average equalized estimated market value of 
 28.6   agricultural property in the township as established by the 
 28.7   commissioner of revenue at the time application for compensation 
 28.8   is made; or 
 28.9      (2) (ii) the assessed value per acre of the parcel 
 28.10  containing the wetland, based on the assessed value of the 
 28.11  parcel as stated on the most recent tax statement; or 
 28.12     (2) $200 per acre of wetland subject to the replacement 
 28.13  plan, increased or decreased by the percentage change of the 
 28.14  assessed valuation of land in the township where the wetland is 
 28.15  located from the 1995 valuation. 
 28.16     (b) A person who receives compensation under paragraph (a) 
 28.17  shall convey to the board a permanent conservation easement as 
 28.18  described in section 103F.515, subdivision 4.  An easement 
 28.19  conveyed under this paragraph is subject to correction and 
 28.20  enforcement under section 103F.515, subdivisions 8 and 9. 
 28.21     Sec. 26.  Minnesota Statutes 1994, section 103G.237, is 
 28.22  amended by adding a subdivision to read: 
 28.23     Subd. 5.  [CLAIMS AGAINST LOCAL GOVERNMENT UNITS.] (a) At 
 28.24  the request of a local government unit against which an action 
 28.25  is brought based at least in part on the local government unit's 
 28.26  application of section 103G.222, 103G.2241, 103G.2242, 103G.237, 
 28.27  or 103G.2372, or rules adopted by the board to implement these 
 28.28  sections, the state, through the attorney general, shall 
 28.29  intervene in the action on behalf of the local government unit 
 28.30  and shall thereafter be considered a defendant in the action.  A 
 28.31  local government unit making a request under this paragraph 
 28.32  shall provide the attorney general with a copy of the complaint 
 28.33  as soon as possible after being served.  If requested by the 
 28.34  attorney general, the court shall grant additional time to file 
 28.35  an answer equal to the time between service of the complaint on 
 28.36  the local government unit and receipt of the complaint by the 
 29.1   attorney general. 
 29.2      (b) The state is liable for costs, damages, fees, and 
 29.3   compensation awarded in the action based on the local 
 29.4   government's adoption or implementation of standards that are 
 29.5   required by state law, as determined by the court.  The local 
 29.6   government unit is liable for costs, damages, fees, and 
 29.7   compensation awarded in the action based on local standards that 
 29.8   are more restrictive than state law and rules, as determined by 
 29.9   the court. 
 29.10     Sec. 27.  Minnesota Statutes 1994, section 103G.2372, 
 29.11  subdivision 1, is amended to read: 
 29.12     Subdivision 1.  [COMMISSIONER OF NATURAL RESOURCES 
 29.13  ENFORCEMENT.] (a) Except as otherwise provided in this 
 29.14  subdivision, the commissioner of natural resources, conservation 
 29.15  officers, and peace officers shall enforce laws preserving and 
 29.16  protecting wetlands.  The commissioner of natural resources, a 
 29.17  conservation officer, or a peace officer may issue a cease and 
 29.18  desist order to stop any illegal activity adversely affecting 
 29.19  draining or filling of a wetland.  In the order, or by separate 
 29.20  order, the commissioner, conservation officer, or peace officer 
 29.21  may require restoration or replacement of the wetland, as 
 29.22  determined by the local soil and water conservation district or 
 29.23  as otherwise provided by a comprehensive wetland protection and 
 29.24  management plan.  The soil and water conservation district shall 
 29.25  make its determination within 45 days after the cease and desist 
 29.26  order or separate restoration order is issued. 
 29.27     (b) An order issued under this subdivision may be enforced 
 29.28  under section 103G.141, subdivision 2, except that the penalty 
 29.29  imposed may not exceed $1,000 for each violation. 
 29.30     (c) A local government unit that has adopted a 
 29.31  comprehensive wetland protection and management plan under 
 29.32  section 103G.2242, subdivision 1a, may, by written notice to the 
 29.33  board and the commissioner, elect to assume the enforcement 
 29.34  powers and duties granted to the commissioner of natural 
 29.35  resources and conservation officers under paragraph (a) and 
 29.36  enforce wetland protection laws under section 394.37.  After 
 30.1   receipt of the notice by the commissioner, the commissioner and 
 30.2   conservation officers may not take an enforcement action under 
 30.3   this section in the local government unit unless requested by 
 30.4   the local government unit or authorized by the board under 
 30.5   paragraph (d). 
 30.6      (d) If the board determines that there are reasonable 
 30.7   grounds to believe that a local government unit is not uniformly 
 30.8   exercising enforcement powers and duties assumed under paragraph 
 30.9   (c), the board shall authorize the commissioner to resume 
 30.10  enforcement under paragraph (a). 
 30.11     Sec. 28.  Minnesota Statutes 1994, section 103G.2373, is 
 30.12  amended to read: 
 30.13     103G.2373 [ANNUAL WETLANDS REPORT.] 
 30.14     By January March 1 of each year, the commissioner of 
 30.15  natural resources and the board of water and soil resources 
 30.16  shall jointly report to the committees of the legislature with 
 30.17  jurisdiction over matters relating to agriculture, the 
 30.18  environment, and natural resources on: 
 30.19     (1) the status of implementation of state laws and programs 
 30.20  relating to wetlands; 
 30.21     (2) the quantity, quality, acreage, types, and public value 
 30.22  of wetlands in the state; and 
 30.23     (3) changes in the items in clause (2). 
 30.24     Sec. 29.  Minnesota Statutes 1994, section 103G.245, 
 30.25  subdivision 2, is amended to read: 
 30.26     Subd. 2.  [EXCEPTIONS.] A public waters work permit is not 
 30.27  required for: 
 30.28     (1) work in altered natural watercourses that are part of 
 30.29  drainage systems established under chapter 103D or 103E if the 
 30.30  work in the waters is undertaken according to chapter 103D or 
 30.31  103E; or 
 30.32     (2) a drainage project for a drainage system established 
 30.33  under chapter 103E that does not substantially affect public 
 30.34  waters; 
 30.35     (3) removal of sediment accumulated in public waters 
 30.36  resulting from a public drainage system, provided that: 
 31.1      (i) the depth and extent of the accumulated sediment is 
 31.2   documented by the ditch authority before removal; 
 31.3      (ii) the original course, current, or cross-section of the 
 31.4   public waters is not altered; and 
 31.5      (iii) the length of excavation is limited to the minimum 
 31.6   needed to restore the original hydraulic capacity; or 
 31.7      (4) work affecting a public waters wetland if the work is 
 31.8   maintenance or repair by a road authority of a road within the 
 31.9   road right-of-way, including replacement of culverts, provided: 
 31.10     (i) any filling of public waters wetlands is minimized; and 
 31.11     (ii) the new culvert outlet is at essentially the same 
 31.12  control elevation as when the replaced culvert was in operation. 
 31.13     Sec. 30.  Minnesota Statutes 1994, section 115.03, is 
 31.14  amended by adding a subdivision to read: 
 31.15     Subd. 4a.  [SECTION 401 CERTIFICATIONS.] (a) The following 
 31.16  definitions apply to this subdivision: 
 31.17     (1) "section 401 certification" means a water quality 
 31.18  certification required under section 401 of the federal Clean 
 31.19  Water Act, United States Code, title 33, section 1341; and 
 31.20     (2) "nationwide permit" means a nationwide general permit 
 31.21  issued by the United States Army Corps of Engineers and listed 
 31.22  in Code of Federal Regulations, title 40, part 330, appendix A, 
 31.23  but does not include nationwide permits for which the agency 
 31.24  requires project-specific certification. 
 31.25     (b) The agency is responsible for providing section 401 
 31.26  certifications for nationwide permits. 
 31.27     (c) Before making a final decision on a section 401 
 31.28  certification for a nationwide permit, the agency shall hold at 
 31.29  least one public meeting outside the seven-county metropolitan 
 31.30  area. 
 31.31     (d) In addition to other notice required by law, the agency 
 31.32  shall provide written notice of a meeting at which the agency 
 31.33  will be considering a section 401 certification for a nationwide 
 31.34  permit at least 21 days before the date of the meeting to the 
 31.35  members of the senate and house of representatives environment 
 31.36  and natural resources committees, the senate agriculture and 
 32.1   rural development committee, and the house of representatives 
 32.2   agriculture committee. 
 32.3      Sec. 31.  Laws 1994, chapter 643, section 26, subdivision 
 32.4   3, is amended to read: 
 32.5   Subd. 3.  RIM Conservation Easement 
 32.6   Acquisition                                           9,000,000
 32.7   This appropriation is for the purposes 
 32.8   specified in paragraphs (a) to (c). 
 32.9   (a) To acquire conservation easements 
 32.10  from landowners on marginal lands to 
 32.11  protect soil and water quality and to 
 32.12  support fish and wildlife habitat as 
 32.13  provided in Minnesota Statutes, section 
 32.14  103F.515. 
 32.15  (b) To acquire perpetual conservation 
 32.16  easements on existing type 1, 2, and 3 
 32.17  wetlands, adjacent lands, and for the 
 32.18  establishment of permanent cover on 
 32.19  adjacent lands, in accordance with 
 32.20  Minnesota Statutes, section 103F.516.  
 32.21  (c) Up to $300,000 of this 
 32.22  appropriation may be used to establish 
 32.23  and restore wetlands to provide credits 
 32.24  for deposit in the state wetland bank 
 32.25  established under Minnesota Statutes, 
 32.26  section 103G.2242, subdivision 1.  The 
 32.27  board may enter into agreements with 
 32.28  local government units and the 
 32.29  commissioner of transportation for this 
 32.30  purpose.  An agreement with the 
 32.31  commissioner of transportation may 
 32.32  provide for borrowing or acquiring 
 32.33  existing wetland credits from the 
 32.34  wetland bank established by the 
 32.35  commissioner.  Proceeds from the sale 
 32.36  of credits provided under this 
 32.37  paragraph are appropriated to the board 
 32.38  for the purposes of paragraph 
 32.39  (b).  Sales of credits provided under 
 32.40  this paragraph to public entities are 
 32.41  not subject to Minnesota Statutes, 
 32.42  section 16A.695. 
 32.43     Sec. 32.  [STUDY OF WETLAND BANKING ALTERNATIVES; REPORT.] 
 32.44     The wetland heritage advisory committee, under the auspices 
 32.45  of the state comprehensive wetlands planning project, shall 
 32.46  investigate alternative procedures and policies for improving 
 32.47  the current wetland banking system in the state.  The study must 
 32.48  address ecological, hydrological, and economic aspects of 
 32.49  wetland banking.  The study and any recommendations must be 
 32.50  reported to the appropriate policy committees of the legislature 
 32.51  by January 1, 1997. 
 32.52     Sec. 33.  [REPEALER.] 
 33.1      Minnesota Statutes 1994, sections 103G.2242, subdivision 
 33.2   13; and 103G.2372, subdivisions 2 and 3, are repealed. 
 33.3      Sec. 34.  [EFFECTIVE DATE.] 
 33.4      This act is effective July 1, 1995, except that sections 17 
 33.5   and 18 are effective the day following final enactment.