1.1                          A bill for an act 
  1.2             relating to water; wetland protection and management; 
  1.3             amending Minnesota Statutes 1994, sections 84.035, 
  1.4             subdivisions 5 and 6; 103F.612, subdivisions 2, 3, 5, 
  1.5             6, and 7; 103G.005, subdivision 10a, and by adding 
  1.6             subdivisions; 103G.127; 103G.222; 103G.2241; 
  1.7             103G.2242, subdivisions 1, 2, 4, 6, 7, 9, and 12; 
  1.8             103G.237, subdivision 4, and by adding a subdivision; 
  1.9             103G.2373; and 115.03, by adding a subdivision; Laws 
  1.10            1994, chapter 643, section 26, subdivision 3; 
  1.11            repealing Minnesota Statutes 1994, section 103G.2242, 
  1.12            subdivision 13. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1994, section 84.035, 
  1.15  subdivision 5, is amended to read: 
  1.16     Subd. 5.  [ACTIVITIES IN PEATLAND SCIENTIFIC AND NATURAL 
  1.17  AREAS.] Areas designated in subdivision 4 as peatland scientific 
  1.18  and natural areas are subject to the following conditions: 
  1.19     (a) Except as provided in paragraph (b), all restrictions 
  1.20  otherwise applicable to scientific and natural areas designated 
  1.21  under section 86A.05, subdivision 5, apply to the surface use 
  1.22  and to any use of the mineral estate which would significantly 
  1.23  modify or alter the peatland water levels or flows, peatland 
  1.24  water chemistry, plant or animal species or communities, or 
  1.25  other natural features of the peatland scientific and natural 
  1.26  areas, including, but not limited to, the following prohibitions:
  1.27     (1) construction of any new public drainage systems after 
  1.28  the effective date of Laws 1991, chapter 354, or improvement or 
  1.29  repair to a public drainage system in existence on the effective 
  2.1   date of Laws 1991, chapter 354, under authority of chapter 103E, 
  2.2   or any other alteration of surface water or ground water levels 
  2.3   or flows unless specifically permitted under paragraph (b), 
  2.4   clause (5) or (6); 
  2.5      (2) removal of peat, sand, gravel, or other industrial 
  2.6   minerals; 
  2.7      (3) exploratory boring or other exploration or removal of 
  2.8   oil, natural gas, radioactive materials or metallic minerals 
  2.9   which would significantly modify or alter the peatland water 
  2.10  levels or flows, peatland water chemistry, plant or animal 
  2.11  species or communities, or natural features of the peatland 
  2.12  scientific and natural areas, except in the event of a national 
  2.13  emergency declared by Congress; 
  2.14     (4) commercial timber harvesting; 
  2.15     (5) construction of new corridors of disturbance, of the 
  2.16  kind defined in subdivision 3, after June 5, 1991; and 
  2.17     (6) ditching, draining, filling, or any other activities 
  2.18  which modify or alter the peatland water levels or flows, 
  2.19  peatland water chemistry, plant or animal species or 
  2.20  communities, or other natural features of the peatland 
  2.21  scientific and natural areas. 
  2.22     (b) The following activities are allowed: 
  2.23     (1) recreational activities, including hunting, fishing, 
  2.24  trapping, cross-country skiing, snowshoeing, nature observation, 
  2.25  or other recreational activities permitted in the management 
  2.26  plan approved by the commissioner; 
  2.27     (2) scientific and educational work and research; 
  2.28     (3) maintenance of corridors of disturbance, including 
  2.29  survey lines and preparation of winter roads, consistent with 
  2.30  protection of the peatland ecosystem; 
  2.31     (4) use of corridors of disturbance unless limited by a 
  2.32  management plan adopted by the commissioner under subdivision 6; 
  2.33     (5) improvements to a public drainage system in existence 
  2.34  on the effective date of Laws 1991, chapter 354, only when it is 
  2.35  for the protection and maintenance of the ecological integrity 
  2.36  of the peatland scientific and natural area and when included in 
  3.1   a management plan adopted by the commissioner under subdivision 
  3.2   6; 
  3.3      (6) repairs to a public drainage system in existence on the 
  3.4   effective date of Laws 1991, chapter 354, which crosses a 
  3.5   peatland scientific and natural area and is used for the 
  3.6   purposes of providing a drainage outlet for lands outside of the 
  3.7   peatland scientific and natural area, provided that there are no 
  3.8   other feasible and prudent alternative means of providing the 
  3.9   drainage outlet.  The commissioner shall cooperate with the 
  3.10  ditch authority in the determination of any feasible and prudent 
  3.11  alternatives.  No repairs which would significantly modify or 
  3.12  alter the peatland water levels or flows, peatland water 
  3.13  chemistry, plant or animal species or communities, or other 
  3.14  natural features of the peatland scientific and natural areas 
  3.15  shall be made unless approved by the commissioner; 
  3.16     (7) motorized uses that are engaged in, on corridors a 
  3.17  corridor of disturbance, if the corridor existed on or before 
  3.18  the effective date of Laws 1991, chapter 354, provided that 
  3.19  recreational motorized uses may occur only when the substrate is 
  3.20  frozen; 
  3.21     (8) control of forest insects, disease, and wildfires, as 
  3.22  described in a management plan adopted by the commissioner under 
  3.23  subdivision 6; and 
  3.24     (9) geological and geophysical surveys which would not 
  3.25  significantly modify or alter the peatland water levels or 
  3.26  flows, peatland water chemistry, plant or animal species or 
  3.27  communities, or other natural features of the peatland 
  3.28  scientific and natural areas. 
  3.29     Sec. 2.  Minnesota Statutes 1994, section 84.035, 
  3.30  subdivision 6, is amended to read: 
  3.31     Subd. 6.  [MANAGEMENT PLANS.] The commissioner shall 
  3.32  develop with the affected local government unit a management 
  3.33  plan for each peatland scientific and natural area designated 
  3.34  under section 84.036 in a manner prescribed by section 86A.09. 
  3.35     Sec. 3.  Minnesota Statutes 1994, section 103F.612, 
  3.36  subdivision 2, is amended to read: 
  4.1      Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
  4.2   the county where a wetland is located for designation of a 
  4.3   wetland preservation area in a high priority wetland area 
  4.4   identified in a comprehensive local water plan, as defined in 
  4.5   section 103B.3363, subdivision 3, and located within a high 
  4.6   priority wetland region designated by the board of water and 
  4.7   soil resources if the county chooses to accept wetland 
  4.8   preservation area applications.  The application must be made on 
  4.9   forms provided by the board.  If a wetland is located in more 
  4.10  than one county, the application must be submitted to the county 
  4.11  where the majority of the wetland is located.  
  4.12     (b) The application must contain at least the following 
  4.13  information and other information the board of soil and water 
  4.14  resources requires:  
  4.15     (1) legal description of the area to be approved, which 
  4.16  must include an upland strip at least 16-1/2 feet in width 
  4.17  around the perimeter of wetlands within the area and may include 
  4.18  total upland area of up to four acres for each acre of wetland; 
  4.19     (2) parcel identification numbers where designated by the 
  4.20  county auditor; 
  4.21     (3) name and address of the owner; 
  4.22     (4) a witnessed signature of the owner covenanting that the 
  4.23  land will be preserved as a wetland and will only be used in 
  4.24  accordance with conditions prescribed by the board of water and 
  4.25  soil resources; and 
  4.26     (5) a statement that the restrictive covenant will be 
  4.27  binding on the owner and the owner's successors or assigns, and 
  4.28  will run with the land.  
  4.29     (c) The upland strip required in paragraph (b), clause (1), 
  4.30  must be planted with permanent vegetation other than a noxious 
  4.31  weed. 
  4.32     (d) For registered property, the owner shall submit the 
  4.33  owner's duplicate certificate of title with the application.  
  4.34     Sec. 4.  Minnesota Statutes 1994, section 103F.612, 
  4.35  subdivision 3, is amended to read: 
  4.36     Subd. 3.  [REVIEW AND NOTICE.] Upon receipt of an 
  5.1   application, the county shall determine if all material required 
  5.2   by subdivision 2 has been submitted and, if so, shall determine 
  5.3   that the application is complete.  The term "date of application"
  5.4   means the date the application is determined to be complete by 
  5.5   the county.  The county shall send a copy of the application to 
  5.6   the county assessor, the regional development commission, where 
  5.7   applicable, the board of water and soil resources, and the soil 
  5.8   and water conservation district where the land is located.  The 
  5.9   soil and water conservation district shall prepare an advisory 
  5.10  statement of existing and potential preservation problems or 
  5.11  conflicts and send the statement to the owner of record and to 
  5.12  the county.  The county shall notify the landowner of the 
  5.13  acceptance or denial of the application within 60 days from the 
  5.14  date of the application. 
  5.15     Sec. 5.  Minnesota Statutes 1994, section 103F.612, 
  5.16  subdivision 5, is amended to read: 
  5.17     Subd. 5.  [COMMENCEMENT OF WETLAND PRESERVATION AREA.] The 
  5.18  wetland is a wetland preservation area commencing 30 days from 
  5.19  the date the county determines notifies the landowner of 
  5.20  acceptance of the application is complete under subdivision 3.  
  5.21     Sec. 6.  Minnesota Statutes 1994, section 103F.612, 
  5.22  subdivision 6, is amended to read: 
  5.23     Subd. 6.  [FEE.] The county may require an application fee, 
  5.24  not to exceed $50 to defray administrative costs of the program. 
  5.25     Sec. 7.  Minnesota Statutes 1994, section 103F.612, 
  5.26  subdivision 7, is amended to read: 
  5.27     Subd. 7.  [MAPS.] The board of water and soil resources 
  5.28  county shall maintain wetland preservation area maps 
  5.29  illustrating land covenanted as wetland preservation areas.  
  5.30     Sec. 8.  Minnesota Statutes 1994, section 103G.005, is 
  5.31  amended by adding a subdivision to read: 
  5.32     Subd. 2a.  [AGRICULTURAL LAND.] "Agricultural land" means: 
  5.33     (1) land used for horticultural, row, close grown, pasture, 
  5.34  and hayland crops; growing nursery stocks; and animal feedlots; 
  5.35  and 
  5.36     (2) contiguous land and buildings under the same ownership, 
  6.1   including farm yards, associated with activities under clause 
  6.2   (1). 
  6.3      Sec. 9.  Minnesota Statutes 1994, section 103G.005, is 
  6.4   amended by adding a subdivision to read: 
  6.5      Subd. 10a.  [INFRASTRUCTURE] "Infrastructure" means storm 
  6.6   water and sanitary sewer piping, outfalls, inlets, culverts, 
  6.7   bridges, and any other work defined specifically by a local 
  6.8   government unit as constituting a capital improvement to a 
  6.9   specific parcel within the context of an approved development 
  6.10  plan, but does not include roads or drainage systems. 
  6.11     Sec. 10.  Minnesota Statutes 1994, section 103G.005, 
  6.12  subdivision 10a, is amended to read: 
  6.13     Subd. 10a 10b.  [LOCAL GOVERNMENT UNIT.] "Local government 
  6.14  unit" means: 
  6.15     (1) outside of the seven-county metropolitan area, a city 
  6.16  council or county board of commissioners; and 
  6.17     (2) in the seven-county metropolitan area, a city council, 
  6.18  a town board under section 368.01, or a watershed management 
  6.19  organization under section 103B.211. 
  6.20     Sec. 11.  Minnesota Statutes 1994, section 103G.005, is 
  6.21  amended by adding a subdivision to read: 
  6.22     Subd. 18a.  [SHORELAND WETLAND PROTECTION ZONE.] "Shoreland 
  6.23  wetland protection zone" means: 
  6.24     (1) land subject to a shoreland protection ordinance 
  6.25  approved under sections 103F.201 to 103F.221, and: 
  6.26     (i) adjacent to a lake, pond, or flowage; or 
  6.27     (ii) within 300 feet from the normal high water level of a 
  6.28  river or stream identified on the public waters inventory, under 
  6.29  section 103G.201; or 
  6.30     (2) land not subject to a shoreland protection ordinance 
  6.31  that is: 
  6.32     (i) within 1,000 feet from the normal high water level of a 
  6.33  lake, pond, or flowage that is at least ten acres in size within 
  6.34  municipalities and at least 25 acres in size in unincorporated 
  6.35  areas; or 
  6.36     (ii) within 300 feet from the normal high water level of a 
  7.1   river or stream identified on the public waters inventory, under 
  7.2   section 103G.201. 
  7.3      Sec. 12.  Minnesota Statutes 1994, section 103G.005, is 
  7.4   amended by adding a subdivision to read: 
  7.5      Subd. 18b.  [SILVICULTURE.] "Silviculture" means the 
  7.6   scientific management of forest trees. 
  7.7      Sec. 13.  Minnesota Statutes 1994, section 103G.005, is 
  7.8   amended by adding a subdivision to read: 
  7.9      Subd. 18c.  [UTILITY.] "Utility" means a sanitary sewer, 
  7.10  storm sewer, potable water distribution, and transmission, 
  7.11  distribution, or furnishing, at wholesale or retail, of natural 
  7.12  or manufactured gas, electricity, telephone, or radio service or 
  7.13  communications. 
  7.14     Sec. 14.  Minnesota Statutes 1994, section 103G.127, is 
  7.15  amended to read: 
  7.16     103G.127 [PERMIT PROGRAM UNDER SECTION 404 OF THE FEDERAL 
  7.17  CLEAN WATER ACT.] 
  7.18     Notwithstanding any other law to the contrary, the 
  7.19  commissioner in consultation with the board of water and soil 
  7.20  resources may adopt rules establishing a permit program for 
  7.21  regulating the discharge of dredged and fill material into the 
  7.22  waters of the state as necessary to obtain approval from the 
  7.23  United States Environmental Protection Agency to administer the 
  7.24  permit program under section 404 of the federal Clean Water Act, 
  7.25  United States Code, title 33, section 1344.  The rules may not 
  7.26  be more restrictive than the program under section 404, or state 
  7.27  law, if it is more restrictive than the federal program. 
  7.28     Sec. 15.  Minnesota Statutes 1994, section 103G.222, is 
  7.29  amended to read: 
  7.30     103G.222 [REPLACEMENT OF WETLANDS.] 
  7.31     (a) After the effective date of the rules adopted under 
  7.32  section 103B.3355 or 103G.2242, whichever is later, wetlands 
  7.33  must not be drained or filled, wholly or partially, unless 
  7.34  replaced by restoring or creating wetland areas of at least 
  7.35  equal public value under a replacement plan approved as provided 
  7.36  in section 103G.2242, a replacement plan under a local 
  8.1   governmental unit's comprehensive wetland protection and 
  8.2   management plan approved by the board under section 103G.2242, 
  8.3   subdivision 1, paragraph (c), or, if a permit to mine is 
  8.4   required under section 93.481, under a mining reclamation plan 
  8.5   approved by the commissioner under the permit to mine.  Mining 
  8.6   reclamation plans shall apply the same principles and standards 
  8.7   for replacing wetlands by restoration or creation of wetland 
  8.8   areas that are applicable to mitigation plans approved as 
  8.9   provided in section 103G.2242. 
  8.10     (b) Replacement must be guided by the following principles 
  8.11  in descending order of priority: 
  8.12     (1) avoiding the direct or indirect impact of the activity 
  8.13  that may destroy or diminish the wetland; 
  8.14     (2) minimizing the impact by limiting the degree or 
  8.15  magnitude of the wetland activity and its implementation; 
  8.16     (3) rectifying the impact by repairing, rehabilitating, or 
  8.17  restoring the affected wetland environment; 
  8.18     (4) reducing or eliminating the impact over time by 
  8.19  preservation and maintenance operations during the life of the 
  8.20  activity; and 
  8.21     (5) compensating for the impact by replacing or providing 
  8.22  substitute wetland resources or environments. 
  8.23     For a project involving the draining or filling of wetlands 
  8.24  in an amount not exceeding 10,000 square feet more than the 
  8.25  applicable amount in section 103G.2241, paragraph (a), clause 
  8.26  (25), the local government unit may make a sequencing 
  8.27  determination without a written alternatives analysis from the 
  8.28  applicant. 
  8.29     (c) If a wetland is located in a cultivated field, then 
  8.30  replacement must be accomplished through restoration only 
  8.31  without regard to the priority order in paragraph (b), provided 
  8.32  that a deed restriction is placed on the altered wetland 
  8.33  prohibiting nonagricultural use for at least ten years.  
  8.34     (d) Restoration and replacement of wetlands must be 
  8.35  accomplished in accordance with the ecology of the landscape 
  8.36  area affected. 
  9.1      (e) Replacement shall be within the same watershed or 
  9.2   county as the impacted wetlands, as based on the wetland 
  9.3   evaluation in section 103G.2242, subdivision 2, except that 
  9.4   counties or watersheds in which 80 percent or more of the 
  9.5   presettlement wetland acreage is intact may accomplish 
  9.6   replacement in counties or watersheds in which 50 percent or 
  9.7   more of the presettlement wetland acreage has been filled, 
  9.8   drained, or otherwise degraded.  Wetlands impacted by public 
  9.9   transportation projects may be replaced statewide, provided they 
  9.10  are approved by the commissioner under an established wetland 
  9.11  banking system, or under the rules for wetland banking as 
  9.12  provided for under section 103G.2242. 
  9.13     (f) Except as provided in paragraph (g), for a wetland 
  9.14  located on nonagricultural land, replacement must be in the 
  9.15  ratio of two acres of replaced wetland for each acre of drained 
  9.16  or filled wetland. 
  9.17     (g) For a wetland located on agricultural land or in 
  9.18  counties or watersheds, affected by a public transportation 
  9.19  project, or located in a county or watershed in which 80 percent 
  9.20  or more of the presettlement wetland acreage exists, replacement 
  9.21  must be in the ratio of one acre of replaced wetland for each 
  9.22  acre of drained or filled wetland, except that when wetland 
  9.23  replacement is done by creation in counties or watersheds with 
  9.24  less than 80 percent of presettlement wetlands remaining, the 
  9.25  replacement must be in the ratio of two acres of replaced 
  9.26  wetland for each acre of drained or filled wetland.  
  9.27     (h) Wetlands that are restored or created as a result of an 
  9.28  approved replacement plan are subject to the provisions of this 
  9.29  section for any subsequent drainage or filling. 
  9.30     (i) Except in counties or watersheds where 80 percent or 
  9.31  more of the presettlement wetlands are intact, only wetlands 
  9.32  that have been restored from previously drained or filled 
  9.33  wetlands, wetlands created by excavation in nonwetlands, 
  9.34  wetlands created by dikes or dams along public or private 
  9.35  drainage ditches, or wetlands created by dikes or dams 
  9.36  associated with the restoration of previously drained or filled 
 10.1   wetlands may be used in a statewide banking program established 
 10.2   in rules adopted under section 103G.2242, subdivision 1.  
 10.3   Modification or conversion of nondegraded naturally occurring 
 10.4   wetlands from one type to another are not eligible for 
 10.5   enrollment in a statewide wetlands bank. 
 10.6      (j) The technical evaluation panel established under 
 10.7   section 103G.2242, subdivision 2, shall ensure that sufficient 
 10.8   time has occurred for the wetland to develop wetland 
 10.9   characteristics of soils, vegetation, and hydrology before 
 10.10  recommending that the wetland be deposited in the statewide 
 10.11  wetland bank.  If the technical evaluation panel has reason to 
 10.12  believe that the wetland characteristics may change 
 10.13  substantially, the panel shall postpone its recommendation until 
 10.14  the wetland has stabilized. 
 10.15     (k) This section and sections 103G.223 to 103G.2242, 
 10.16  103G.2364, and 103G.2365 apply to the state and its departments 
 10.17  and agencies. 
 10.18     (l) For projects involving filling of wetlands associated 
 10.19  with a public transportation project, public transportation 
 10.20  authorities may purchase credits from the mitigation bank 
 10.21  established with proceeds from Laws of 1994, chapter 643, 
 10.22  section 26, subdivision 3, paragraph (c).  For projects in 
 10.23  counties or watersheds with more than 80 percent of their 
 10.24  presettlement wetland remaining, wetland credits may be 
 10.25  purchased at the lesser of the following:  (i) the cost of the 
 10.26  state to establish the credits or (ii) two times the average 
 10.27  value of the land in the immediate vicinity of the road project 
 10.28  as determined by the county assessor.  The cost of credits for 
 10.29  road projects located in counties or watersheds with less than 
 10.30  80 percent of their presettlement wetlands remaining is the cost 
 10.31  of the state to establish the credits. 
 10.32     (m) Before authorizing any wetland drain or fill activity, 
 10.33  the local government unit must consider how extensively the 
 10.34  proposed activity would affect the following functional 
 10.35  qualities of the wetland: 
 10.36     (1) floodwater retention; 
 11.1      (2) nutrient assimilation; 
 11.2      (3) sediment entrapment; 
 11.3      (4) groundwater recharge; 
 11.4      (5) low flow augmentation; 
 11.5      (6) wildlife and fisheries habitat; or 
 11.6      (7) critical habitat for endangered plants and animals. 
 11.7      If, based on an assessment of clauses (1) to (7) and 
 11.8   concurrence of the technical evaluation panel, the functional 
 11.9   qualities of the replacement site exceeds those of the impacted 
 11.10  wetland, the local government unit may elect to not require that 
 11.11  replacement exceed the minimum acreage required by paragraphs 
 11.12  (f) and (g). 
 11.13     Sec. 16.  Minnesota Statutes 1994, section 103G.2241, is 
 11.14  amended to read: 
 11.15     103G.2241 [EXEMPTIONS.] 
 11.16     (a) Subject to the conditions in paragraph (b), a 
 11.17  replacement plan for wetlands is not required for:  
 11.18     (1) activities in a wetland that was planted with annually 
 11.19  seeded crops, was in a crop rotation seeding of pasture grasses 
 11.20  or legumes, or was required to be set aside to receive price 
 11.21  support or other payments under United States Code, title 7, 
 11.22  sections 1421 to 1469, in six of the last ten years prior to 
 11.23  January 1, 1991; 
 11.24     (2) activities in a wetland that is or has been enrolled in 
 11.25  the federal conservation reserve program under United States 
 11.26  Code, title 16, section 3831, that: 
 11.27     (i) was planted with annually seeded crops, was in a crop 
 11.28  rotation seeding, or was required to be set aside to receive 
 11.29  price support or payment under United States Code, title 7, 
 11.30  sections 1421 to 1469, in six of the last ten years prior to 
 11.31  being enrolled in the program; and 
 11.32     (ii) has not been restored with assistance from a public or 
 11.33  private wetland restoration program; 
 11.34     (3) activities necessary to repair and maintain existing 
 11.35  public or private drainage systems as long as wetlands that have 
 11.36  been in existence for more than 20 years are not drained; 
 12.1      (4) activities in a wetland that has received a commenced 
 12.2   drainage determination provided for by the federal Food Security 
 12.3   Act of 1985, that was made to the county agricultural 
 12.4   stabilization and conservation service office prior to September 
 12.5   19, 1988, and a ruling and any subsequent appeals or reviews 
 12.6   have determined that drainage of the wetland had been commenced 
 12.7   prior to December 23, 1985; 
 12.8      (5) activities exempted from federal regulation under 
 12.9   United States Code, title 33, section 1344(f); 
 12.10     (6) activities authorized under, and conducted in 
 12.11  accordance with, an applicable general permit issued by the 
 12.12  United States Army Corps of Engineers under section 404 of the 
 12.13  federal Clean Water Act, United States Code, title 33, section 
 12.14  1344, except the nationwide permit in Code of Federal 
 12.15  Regulations, title 33, section 330.5, paragraph (a), clause 
 12.16  (14), limited to when a new road crosses a wetland, and all of 
 12.17  clause (26); 
 12.18     (7) activities in a type 1 wetland on agricultural land, as 
 12.19  defined in United States Fish and Wildlife Circular No. 39 (1971 
 12.20  edition) except for bottomland hardwood type 1 wetlands; 
 12.21     (8) activities in a type 2 wetland that is two acres in 
 12.22  size or less located on agricultural land; 
 12.23     (9) activities in a wetland restored for conservation 
 12.24  purposes under a contract or easement providing the landowner 
 12.25  with the right to drain the restored wetland; 
 12.26     (10) activities in a wetland created solely as a result of: 
 12.27     (i) beaver dam construction; 
 12.28     (ii) blockage of culverts through roadways maintained by a 
 12.29  public or private entity; 
 12.30     (iii) actions by public entities that were taken for a 
 12.31  purpose other than creating the wetland; or 
 12.32     (iv) any combination of (i) to (iii); 
 12.33     (11) placement, maintenance, repair, enhancement, or 
 12.34  replacement of utility or utility-type service, including the 
 12.35  transmission, distribution, or furnishing, at wholesale or 
 12.36  retail, of natural or manufactured gas, electricity, telephone, 
 13.1   or radio service or communications if: 
 13.2      (i) the impacts of the proposed project on the hydrologic 
 13.3   and biological characteristics of the wetland have been avoided 
 13.4   and minimized to the extent possible; and 
 13.5      (ii) the proposed project significantly modifies or alters 
 13.6   less than one-half acre of wetlands; 
 13.7      (12) activities associated with routine maintenance of 
 13.8   utility and pipeline rights-of-way, provided the activities do 
 13.9   not result in additional intrusion into the wetland; 
 13.10     (13) alteration of a wetland associated with the operation, 
 13.11  maintenance, or repair of an interstate pipeline; 
 13.12     (14) temporarily crossing or entering a wetland to perform 
 13.13  silvicultural activities, including timber harvest as part of a 
 13.14  forest management activity, so long as the activity limits the 
 13.15  impact on the hydrologic and biologic characteristics of the 
 13.16  wetland; the activities do not result in the construction of 
 13.17  dikes, drainage ditches, tile lines, or buildings; and the 
 13.18  timber harvesting and other silvicultural practices do not 
 13.19  result in the drainage of the wetland or public waters; 
 13.20     (15) permanent access for forest roads across wetlands so 
 13.21  long as the activity limits the impact on the hydrologic and 
 13.22  biologic characteristics of the wetland; the construction 
 13.23  activities do not result in the access becoming a dike, drainage 
 13.24  ditch or tile line; with filling avoided wherever possible; and 
 13.25  there is no drainage of the wetland or public waters; 
 13.26     (16) draining or filling up to one-half acre of wetlands 
 13.27  for the repair, rehabilitation, or replacement of a previously 
 13.28  authorized, currently serviceable existing public road, provided 
 13.29  that minor deviations in the public road's configuration or 
 13.30  filled area, including those due to changes in materials, 
 13.31  construction techniques, or current construction codes or safety 
 13.32  standards, that are necessary to make repairs, rehabilitation, 
 13.33  or replacement are allowed if the wetland draining or filling 
 13.34  resulting from the repair, rehabilitation, or replacement is 
 13.35  minimized; 
 13.36     (17) emergency repair and normal maintenance and repair of 
 14.1   existing public works, provided the activity does not result in 
 14.2   additional intrusion of the public works into the wetland and do 
 14.3   not result in the draining or filling, wholly or partially, of a 
 14.4   wetland; 
 14.5      (18) normal maintenance and minor repair of structures 
 14.6   causing no additional intrusion of an existing structure into 
 14.7   the wetland, and maintenance and repair of private crossings 
 14.8   that do not result in the draining or filling, wholly or 
 14.9   partially, of a wetland; 
 14.10     (19) duck blinds; 
 14.11     (20) aquaculture activities, including pond excavation and 
 14.12  construction and maintenance of associated access roads and 
 14.13  dikes authorized under, and conducted in accordance with, a 
 14.14  permit issued by the United States Army Corps of Engineers under 
 14.15  section 404 of the federal Clean Water Act, United States Code, 
 14.16  title 33, section 1344, but not including construction or 
 14.17  expansion of buildings; 
 14.18     (21) wild rice production activities, including necessary 
 14.19  diking and other activities authorized under a permit issued by 
 14.20  the United States Army Corps of Engineers under section 404 of 
 14.21  the federal Clean Water Act, United States Code, title 33, 
 14.22  section 1344; 
 14.23     (22) normal agricultural practices to control pests or 
 14.24  weeds, defined by rule as either noxious or secondary weeds, in 
 14.25  accordance with applicable requirements under state and federal 
 14.26  law, including established best management practices; 
 14.27     (23) activities in a wetland that is on agricultural land 
 14.28  annually enrolled in the federal Food, Agricultural, 
 14.29  Conservation, and Trade Act of 1990, United States Code, title 
 14.30  16, section 3821, subsection (a), clauses (1) to (3), as 
 14.31  amended, and is subject to sections 1421 to 1424 of the federal 
 14.32  act in effect on January 1, 1991, except that land enrolled in a 
 14.33  federal farm program is eligible for easement participation for 
 14.34  those acres not already compensated under a federal program; 
 14.35     (24) development projects and ditch improvement projects in 
 14.36  the state that have received preliminary or final plat approval, 
 15.1   or infrastructure that has been installed, or having local site 
 15.2   plan approval, conditional use permits, or similar official 
 15.3   approval by a governing body or government agency, within five 
 15.4   years before July 1, 1991.  In the seven-county metropolitan 
 15.5   area and in cities of the first and second class, plat approval 
 15.6   must be preliminary as approved by the appropriate governing 
 15.7   body; and 
 15.8      (25) activities that result in the draining or filling of 
 15.9   less than 400 square feet of wetlands. 
 15.10     (b) For the purpose of paragraph (a), clause (16), 
 15.11  "currently serviceable" means usable as is or with some 
 15.12  maintenance, but not so degraded as to essentially require 
 15.13  reconstruction.  Paragraph (a), clause (16), authorizes the 
 15.14  repair, rehabilitation, or replacement of public roads destroyed 
 15.15  by storms, floods, fire, or other discrete events, provided the 
 15.16  repair, rehabilitation, or replacement is commenced or under 
 15.17  contract to commence within two years of the occurrence of the 
 15.18  destruction or damage. 
 15.19     (c) A person conducting an activity in a wetland under an 
 15.20  exemption in paragraph (a) shall ensure that: 
 15.21     (1) appropriate erosion control measures are taken to 
 15.22  prevent sedimentation of the water; 
 15.23     (2) the activity does not block fish passage in a 
 15.24  watercourse; and 
 15.25     (3) the activity is conducted in compliance with all other 
 15.26  applicable federal, state, and local requirements, including 
 15.27  best management practices and water resource protection 
 15.28  requirements established under chapter 103H. 
 15.29     Subdivision 1.  [AGRICULTURAL ACTIVITIES.] A replacement 
 15.30  plan for wetlands is not required for: 
 15.31     (a) activities in a wetland that was planted with annually 
 15.32  seeded crops, was in a crop rotation seeding of pasture grasses 
 15.33  or legumes, or was required to be set aside to receive price 
 15.34  support or other payments under United States Code, title 7, 
 15.35  sections 1421 to 1469, in six of the last ten years prior to 
 15.36  January 1, 1991; 
 16.1      (b) activities in a wetland that is or has been enrolled in 
 16.2   the federal conservation reserve program under United States 
 16.3   Code, title 16, section 3831, that: 
 16.4      (i) was planted with annually seeded crops, was in a crop 
 16.5   rotation seeding, or was required to be set aside to receive 
 16.6   price support or payment under United States Code, title 7, 
 16.7   sections 1421 to 1469, in six of the last ten years prior to 
 16.8   being enrolled in the program; and 
 16.9      (ii) has not been restored with assistance from a public or 
 16.10  private wetland restoration program; 
 16.11     (c) activities in a wetland that has received a commenced 
 16.12  drainage determination provided for by the federal Food Security 
 16.13  Act of 1985, that was made to the county agricultural 
 16.14  stabilization and conservation service office prior to September 
 16.15  19, 1988, and a ruling and any subsequent appeals or reviews 
 16.16  have determined that drainage of the wetland had been commenced 
 16.17  prior to December 23, 1985; 
 16.18     (d) activities in type 1 wetland on agricultural land, as 
 16.19  defined in United States Fish and Wildlife Circular No. 39 (1971 
 16.20  edition) except for bottomland hardwood type 1 wetlands; 
 16.21     (e) activities in a type 2 or type 6 wetland that is two 
 16.22  acres in size or less located on agricultural land; 
 16.23     (f) aquaculture activities including pond excavation and 
 16.24  construction and maintenance of associated access roads and 
 16.25  dikes authorized under, and conducted in accordance with, a 
 16.26  permit issued by the United States Army Corps of Engineers under 
 16.27  section 404 of the federal Clean Water Act, United States Code, 
 16.28  title 33, section 1344, but not including construction or 
 16.29  expansion of buildings; 
 16.30     (g) wild rice production activities, including necessary 
 16.31  diking and other activities authorized under a permit issued by 
 16.32  the United State Army Corps of Engineers under section 404 of 
 16.33  the federal Clean Water Act, United States Code, title 33, 
 16.34  section 1344; 
 16.35     (h) normal agricultural practices to control pests of 
 16.36  weeds, defined by rule as either noxious or secondary weeds, in 
 17.1   accordance with applicable requirements under state and federal 
 17.2   law, including established best management practices; and 
 17.3      (i) activities in a wetland that is on agricultural land 
 17.4   annually enrolled in the federal Food, Agricultural, 
 17.5   Conservation, and Trade Act of 1990, United States Code, title 
 17.6   16, section 3821, subsection (a), clauses (1) to (3), as 
 17.7   amended, and is subject to sections 1421 to 1424 of the federal 
 17.8   act in effect on January 1, 1991, except that land enrolled in a 
 17.9   federal farm program is eligible for easement participation for 
 17.10  those acres not already compensated under a federal program. 
 17.11     Subd. 2.  [DRAINAGE.] A replacement plan for wetlands is 
 17.12  not required for activities:  
 17.13     (a)(i) necessary to repair and maintain existing public or 
 17.14  private drainage systems as long as wetlands are not drained 
 17.15  beyond the level that existed 20 years prior to the drainage 
 17.16  request; 
 17.17     (ii) which fill wetlands that have been in existence for 
 17.18  more than 20 years when the wetlands are located within the 
 17.19  right-of-way acreage of the ditch or within a one rod width on 
 17.20  either side of the ditch, whichever is greater, and the filling 
 17.21  is limited to the side casting of spoil materials resulting from 
 17.22  the maintenance and the spoil deposition area is permanently 
 17.23  seeded into grass after maintenance activities are completed; 
 17.24     (iii) which lower the elevation of previously placed tile 
 17.25  when made necessary by land subsidence provided the lowering 
 17.26  does not drain additional wetlands; 
 17.27     (iv) which drain wetlands that have formed in the bottom of 
 17.28  ditches or were created solely as a result of beaver activity; 
 17.29     (v) necessary to maintain ditches immediately adjacent to 
 17.30  or on land that was planted with annually seeded crops, was in a 
 17.31  crop rotation seeding of pasture grasses or legumes, or was 
 17.32  required to be set aside to receive price supports or other 
 17.33  payments under United States Code, title 7, sections 1421 to 
 17.34  1469, in six of the last ten years prior to January 1, 1991; 
 17.35     (vi) which drain type 1 wetlands, except for bottomland 
 17.36  hardwoods on agricultural land; and 
 18.1      (vii) which drain type 2 and type 6 wetlands less than 2 
 18.2   acres in size on agricultural land; or 
 18.3      (b) as part of a public drainage system improvement project 
 18.4   provided that: 
 18.5      (i) final approval from the ditch authority was received 
 18.6   before July 1, 1991 and after July 1, 1986; 
 18.7      (ii) the approval remains valid; 
 18.8      (iii) the project remains active; and 
 18.9      (iv) no additional drainage or filling will occur beyond 
 18.10  that originally approved. 
 18.11     Subd. 3.  [FEDERAL APPROVALS.] A replacement plan for 
 18.12  wetlands is not required for: 
 18.13     (a) activities exempted from federal regulation under 
 18.14  United States Code, title 33, section 1344(f); 
 18.15     (b) activities authorized under, and conducted in 
 18.16  accordance with, an applicable general permit issued by the 
 18.17  United States Army Corps of Engineers under section 404 of the 
 18.18  federal Clean Water Act, United States Code, title 33, section 
 18.19  1344, except the nationwide permit in Code of Federal 
 18.20  Regulations, title 33, section 330.5, paragraph (a), clauses 
 18.21  (14), limited to when a new road crosses a wetland, and all of 
 18.22  (26); 
 18.23     Subd. 4.  [WETLAND RESTORATIONS.] A replacement plan for 
 18.24  wetlands is not required for activities in a wetland restored 
 18.25  for conservation purposes under a contract or easement providing 
 18.26  the landowner with the right to drain the restored wetland. 
 18.27     Subd. 5.  [INCIDENTAL WETLANDS.] A replacement plan for 
 18.28  wetlands is not required for activities in a wetland created 
 18.29  solely as a result of: 
 18.30     (i) beaver dam construction; 
 18.31     (ii) blockage of culverts through roadways maintained by a 
 18.32  public or private entity; 
 18.33     (iii) actions by public or private entities that were taken 
 18.34  for a purpose other than creating the wetland; or 
 18.35     (iv) any combination of (i) to (iii). 
 18.36     Subd. 6.  [UTILITIES; PUBLIC WORKS; INFRASTRUCTURE.] A 
 19.1   replacement plan for wetlands is not required for: 
 19.2      (a) placement, maintenance, repair, enhancement, or 
 19.3   replacement of utility or utility-type service, including the 
 19.4   transmission, distribution, or furnishing, at wholesale or 
 19.5   retail, of natural or manufactured gas, electricity, telephone, 
 19.6   or radio service of communications if: 
 19.7      (i) the impacts of the proposed project on the hydrologic 
 19.8   and biological characteristics of the wetland have been avoided 
 19.9   and minimized to the extent possible; and 
 19.10     (ii) the proposed project significantly modifies or alters 
 19.11  less than one-half acre of wetlands. 
 19.12     (b) activities associated with routine maintenance of 
 19.13  utility and pipeline rights-of-way, provided the activities do 
 19.14  not result in additional intrusion into the wetland. 
 19.15     (c) alteration of a wetland associated with the operation, 
 19.16  maintenance, or repair of an interstate pipeline within all 
 19.17  existing of acquired interstate pipeline rights-of-way. 
 19.18     (d) emergency repair and normal maintenance and repair of 
 19.19  existing public works, provided the activity does not result in 
 19.20  additional intrusion of the public works into the wetland and 
 19.21  does not result in the draining or filling, wholly or partially, 
 19.22  of a wetland. 
 19.23     (e) normal maintenance and minor repair of structures 
 19.24  causing no additional intrusion of an existing structure into 
 19.25  the wetland, and maintenance and repair of private crossings 
 19.26  that do not result in the draining or filling, wholly or 
 19.27  partially, of a wetland. 
 19.28     (f) repair and updating of existing individual sewage 
 19.29  treatment systems as necessary to comply with local, state and 
 19.30  federal regulations. 
 19.31     Subd. 7.  [FORESTRY.] A replacement plan for wetlands is 
 19.32  not required for: 
 19.33     (a) temporarily crossing or entering a wetland to perform 
 19.34  silvicultural activities, including timber harvest as part of a 
 19.35  forest management activity, so long as the activity limits the 
 19.36  impact on the hydrologic and biologic characteristics of the 
 20.1   wetland; the activities do not result in the construction of 
 20.2   dikes, drainage ditches, tile lines, or buildings; and the 
 20.3   timber harvesting and other silvicultural practices do not 
 20.4   result in the drainage of the wetland or public waters. 
 20.5      (b) permanent access for forest roads across wetlands so 
 20.6   long as the activity limits the impact on the hydrologic and 
 20.7   biologic characteristics of the wetland; the construction 
 20.8   activities do not result in the access becoming a dike, drainage 
 20.9   ditch or tile line; with filling avoided wherever possible; and 
 20.10  there is no drainage of the wetland or public waters. 
 20.11     Subd. 8.  [PUBLIC ROADS.] A replacement plan for wetlands 
 20.12  is not required for filling up to: 
 20.13     (a) one-half of wetlands; or 
 20.14     (b) one acre outside of shoreland areas in counties with 
 20.15  greater than 80 percent of their presettlement wetlands 
 20.16  remaining; for the repair, rehabilitation, or replacement of a 
 20.17  previously authorized, currently serviceable existing public 
 20.18  road when required by state or federal standards or requirements.
 20.19     For the purpose of this subdivision, "currently 
 20.20  serviceable" means usable as is or with some maintenance, but 
 20.21  not so degraded as to essentially require reconstruction.  This 
 20.22  subdivision authorizes the repair, rehabilitation, or 
 20.23  replacement of public roads destroyed by storms, floods, fire, 
 20.24  or other discrete events, provided the repair, rehabilitation, 
 20.25  or replacement is commenced or under contract to commence within 
 20.26  two years of the occurrence of the destruction or damage. 
 20.27     Subd. 9.  [APPROVED DEVELOPMENT.] A replacement plan for 
 20.28  wetlands is not required for development projects and ditch 
 20.29  improvement projects in the state that have received preliminary 
 20.30  or final plat approval, or infrastructure that has been 
 20.31  installed, or having local site plan approval, conditional use 
 20.32  permits, or similar official approved by a governing body or 
 20.33  government agency, within five years before July 1, 1991.  In 
 20.34  the seven-county metropolitan area and in cities of the first 
 20.35  and second class, plat approval must be preliminary as approved 
 20.36  by the appropriate governing body. 
 21.1      Subd. 10.  [DEMINIMUS.] A replacement plan for wetlands is 
 21.2   not required for filling of the following amounts of wetlands as 
 21.3   part of a project, regardless of the total amount of wetlands 
 21.4   filled as part of a project: 
 21.5      (1) 10,000 square feet of wetland type 1, type 2, type 6, 
 21.6   or type 7 outside of the shoreland wetland protection zone in 
 21.7   counties or watersheds with more than 80 percent of their 
 21.8   presettlement wetlands remaining; 
 21.9      (2) 2,000 square feet of wetland type 1, type 2 or type 6, 
 21.10  outside of the shoreland wetland protection zone in counties or 
 21.11  watersheds with less than 80 percent of their presettlement 
 21.12  wetlands remaining; or 
 21.13     (3) 400 square feet of wetland types 1 to 8 in the 
 21.14  shoreland wetland protection zone and elsewhere statewide. 
 21.15     The amounts listed in clauses (1) to (3) may not be 
 21.16  combined on a project. 
 21.17     (4) This exemption no longer applies to a wetland when the 
 21.18  cumulative area drained or filled since January 1, 1992, is the 
 21.19  greater of the applicable area listed in clauses (1) to (3) or 
 21.20  five percent of the total area of the wetland. 
 21.21     Each riparian property owner as of January 1, 1992, is 
 21.22  entitled to an equal portion of the amounts specified in clauses 
 21.23  (1) to (3), subject to the conditions in clause (4). 
 21.24     Subd. 11.  [WILDLIFE HABITAT.] A replacement plan for 
 21.25  wetlands is not required for: 
 21.26     (a) deposition of spoil resulting from excavation within a 
 21.27  wetland for wildlife habitat improvement purposes, if: 
 21.28     (1) the area of deposition does not exceed five percent of 
 21.29  the wetland area or one-half acre, whichever is less, and the 
 21.30  spoil is stabilized and permanently seeded to prevent erosion; 
 21.31     (2) the project does not have an adverse impact on any 
 21.32  species designated as endangered or threatened under state or 
 21.33  federal law; and 
 21.34     (3) the project will provide wildlife habitat improvement 
 21.35  as certified by the Soil and Water Conservation District; or 
 21.36     (b) duck blinds.  
 22.1      Subd. 12.  [EXEMPTION CONDITIONS.] (a) A person conducting 
 22.2   an activity in a wetland under an exemption in subdivisions 1 to 
 22.3   11 shall ensure that: 
 22.4      (1) appropriate erosion control measures are taken to 
 22.5   prevent sedimentation of the water; 
 22.6      (2) the activity does not block fish passage in a 
 22.7   watercourse; and 
 22.8      (3) the activity is conducted in compliance with all other 
 22.9   applicable federal, state, and local requirements, including 
 22.10  best management practices and water resource protection 
 22.11  requirements established under chapter 103H.  
 22.12     (b) A local government unit may expand the application of 
 22.13  subdivision 1, paragraphs (d) and (e), to additional acreage of 
 22.14  types 1, 2, and 6 wetlands that are part of a larger wetland 
 22.15  system, when the additional acreage is part of a conservation 
 22.16  plan prepared by the local soil and water conservation district, 
 22.17  the additional draining or filling is necessary for efficient 
 22.18  operation of the farm, and wetlands other than types 1, 2, and 6 
 22.19  are not drained or filled. 
 22.20     Sec. 17.  Minnesota Statutes 1994, section 103G.2242, 
 22.21  subdivision 1, is amended to read: 
 22.22     Subdivision 1.  [RULES.] (a) By July 1, 1993, the board, in 
 22.23  consultation with the commissioner, shall adopt rules governing 
 22.24  the approval of wetland value replacement plans under this 
 22.25  section.  These rules must address the criteria, procedure, 
 22.26  timing, and location of acceptable replacement of wetland 
 22.27  values; may address the state establishment and administration 
 22.28  of a wetland banking program for public and private projects, 
 22.29  which may include provisions allowing monetary payment to the 
 22.30  wetland banking program for alteration of wetlands on 
 22.31  agricultural land; the methodology to be used in identifying and 
 22.32  evaluating wetland functions; the administrative, monitoring, 
 22.33  and enforcement procedures to be used; and a procedure for the 
 22.34  review and appeal of decisions under this section.  In the case 
 22.35  of peatlands, the replacement plan rules must consider the 
 22.36  impact on carbon balance described in the report required by 
 23.1   Laws 1990, chapter 587, and include the planting of trees or 
 23.2   shrubs. 
 23.3      (b) After the adoption of the rules, a replacement plan 
 23.4   must be approved by a resolution of the governing body of the 
 23.5   local government unit, consistent with the provisions of the 
 23.6   rules. 
 23.7      (c) The board may approve as an alternative to the rules 
 23.8   adopted under this subdivision a comprehensive wetland 
 23.9   protection and management plan developed by a local government 
 23.10  unit, provided that the plan: 
 23.11     (1) the plan incorporates sections 103A.201, subdivision 2, 
 23.12  103B.3355, and 103G.222; 
 23.13     (2) a request is made at the beginning of the planning 
 23.14  process to the board, the department of natural resources, the 
 23.15  pollution control agency, other local government units, and 
 23.16  local citizens to actively participate in the development of the 
 23.17  plan; and 
 23.18     (3) the plan is adopted as part of an approved local water 
 23.19  plan under sections 103B.231 and 103B.311; and 
 23.20     (3) (4) is adopted as part of the local government's 
 23.21  official controls. 
 23.22     (d) If the local government unit fails to apply the rules, 
 23.23  or fails to implement a local program under paragraph (c), the 
 23.24  government unit is subject to penalty as determined by the board.
 23.25     (e) A comprehensive wetland protection and management plan 
 23.26  may: 
 23.27     (1) according to a procedure approved by the board, 
 23.28  classify wetlands based on an assessment of: 
 23.29     (i) wetland functions including:  floodwater retention, 
 23.30  nutrient assimilation, sediment entrapment, groundwater 
 23.31  recharge, low flow augmentation, aesthetics and recreation, 
 23.32  commercial uses, wildlife and fisheries habitat, and education; 
 23.33  and 
 23.34     (ii) the resulting public values: 
 23.35     (2) vary application of the sequencing standards of section 
 23.36  103G.222, paragraph (b), based on the classification; 
 24.1      (3) vary the replacement standards of Minnesota Statutes, 
 24.2   section 103G.222, paragraphs (f) and (g) for specific wetland 
 24.3   impacts provided there is no net loss of public values and 
 24.4   biological diversity within the area subject to the plan, and so 
 24.5   long as in counties and watersheds having less than 80 percent 
 24.6   of their presettlement wetland acreage, a minimum acreage 
 24.7   requirement of one acre of replaced wetland for each acre of 
 24.8   drained or filled wetland is met within the area subject to the 
 24.9   plan; 
 24.10     (4) allow replacement credit in a county or watershed with 
 24.11  more than 80 percent of their presettlement wetlands for any 
 24.12  project that increases the public value of wetlands, including 
 24.13  activities on adjacent upland acres, based on the 
 24.14  classification; and 
 24.15     (5) for counties with greater than 80 percent of 
 24.16  presettlement wetlands remaining, expand the application of the 
 24.17  exemptions in section 103G.2241, paragraph (a), clauses (7) and 
 24.18  (8), to also include nonagricultural land, provided there is no 
 24.19  net loss of wetland values, based on the classification. 
 24.20     (f) An agency that is invited to participate but declines 
 24.21  the opportunity and fails to provide written comments during the 
 24.22  local review period, waives the right during state review to 
 24.23  submit comments other than those concerning the consistency of 
 24.24  the plan with state laws and rules administered by that agency. 
 24.25     (g) In determining the merit of an agency comment, the 
 24.26  board must consider the extent of involvement of the commenting 
 24.27  agency in the development of the plan. 
 24.28     (h) Upon approval of a comprehensive wetland protection and 
 24.29  management plan by the board, the local government unit shall 
 24.30  make replacement decisions based on the approved plan. 
 24.31     (i) The board must approve a plan under this section if it 
 24.32  provides the same level of preservation of the quality, quantity 
 24.33  and biological diversity of wetlands within the plan's 
 24.34  jurisdiction as the application of Laws 1991, chapter 354, as 
 24.35  amended. 
 24.36     (j) In approving a plan, the board shall advise the local 
 25.1   government unit of those elements of the plan that are more 
 25.2   restrictive than state law and rules for purposes of section 
 25.3   103G.237, subdivision 5. 
 25.4      Sec. 18.  Minnesota Statutes 1994, section 103G.2242, 
 25.5   subdivision 2, is amended to read: 
 25.6      Subd. 2.  [EVALUATION.] Questions concerning the public 
 25.7   value, location, size, or type of a wetland shall be submitted 
 25.8   to and determined by a technical evaluation panel after an 
 25.9   on-site inspection.  The technical evaluation panel shall be 
 25.10  composed of a technical professional employee of the board, a 
 25.11  technical professional employee of the local soil and water 
 25.12  conservation district or districts, and a technical professional 
 25.13  with expertise in water resources management appointed by the 
 25.14  local government unit.  The panel shall use the "Federal Manual 
 25.15  for Identifying and Delineating Jurisdictional Wetlands" 
 25.16  (January 1989) "U.S. Army Corps of Engineers Wetland Delineation 
 25.17  Manual" (January 1987).  The panel shall provide the wetland 
 25.18  determination to the local government unit that must approve a 
 25.19  replacement plan under this section, and may recommend approval 
 25.20  or denial of the plan.  The authority must consider and include 
 25.21  the decision of the technical evaluation panel in their approval 
 25.22  or denial of a plan. 
 25.23     Sec. 19.  Minnesota Statutes 1994, section 103G.2242, 
 25.24  subdivision 4, is amended to read: 
 25.25     Subd. 4.  [DECISION.] Upon receiving and considering all 
 25.26  required data, the local government unit approving a replacement 
 25.27  plan must act on all applications for plan approval within 60 
 25.28  days.  A local government unit may extend the 60-day period for 
 25.29  an additional 30 days by notifying the applicant in writing of 
 25.30  the delay, the reasons for the delay, and the expected date of 
 25.31  final action on the application.  If the local government unit 
 25.32  fails to act on an application within the 60-day period or any 
 25.33  extension period, the replacement plan shall be deemed approved. 
 25.34     Sec. 20.  Minnesota Statutes 1994, section 103G.2242, 
 25.35  subdivision 6, is amended to read: 
 25.36     Subd. 6.  [NOTICE OF APPLICATION.] (a) Except as provided 
 26.1   in paragraph (b), within ten days of receiving an application 
 26.2   for approval of a replacement plan under this section, a copy 
 26.3   summary of the application must be submitted to the board for 
 26.4   publication in the Environmental Quality Board Monitor and 
 26.5   separate copies of the complete application mailed to the 
 26.6   members of the technical evaluation panel, individual members of 
 26.7   the public who request a copy, the board of supervisors of the 
 26.8   soil and water conservation district, the managers of the 
 26.9   watershed district if one exists, the board of county 
 26.10  commissioners, and the commissioner of agriculture, and the 
 26.11  mayors of the cities within the area watershed.  At the same 
 26.12  time, the local government unit must give general notice to the 
 26.13  public in a general circulation newspaper within the area 
 26.14  affected natural resources. 
 26.15     (b) Within ten days of receiving an application for 
 26.16  approval of a replacement plan under this section for an 
 26.17  activity affecting less than 10,000 square feet of wetland, a 
 26.18  summary of the application must be submitted for publication in 
 26.19  the Environmental Quality Board Monitor and separate copies 
 26.20  mailed to the members of the technical evaluation panel, 
 26.21  individual members of the public who request a copy, and the 
 26.22  managers of the watershed district, if applicable.  At the same 
 26.23  time, the local government unit must give general notice to the 
 26.24  public in a general circulation newspaper within the area 
 26.25  affected commissioner of natural resources. 
 26.26     (c) For the purpose of this subdivision, "application" 
 26.27  includes a revised application for replacement plan approval and 
 26.28  an application for a revision to an approved replacement plan if:
 26.29     (1) the wetland area to be drained or filled under the 
 26.30  revised replacement plan is at least ten percent larger than the 
 26.31  area to be drained or filled under the original replacement 
 26.32  plan; or 
 26.33     (2) the wetland area to be drained or filled under the 
 26.34  revised replacement is located more than 500 feet from the area 
 26.35  to be drained or filled under the original replacement plan. 
 26.36     Sec. 21.  Minnesota Statutes 1994, section 103G.2242, 
 27.1   subdivision 7, is amended to read: 
 27.2      Subd. 7.  [NOTICE OF DECISION.] (a) Except as provided in 
 27.3   paragraph (b), at least 30 Within ten days prior to the 
 27.4   effective date of the approval or denial of a replacement plan 
 27.5   under this section, a copy summary of the approval or denial 
 27.6   must be submitted for publication in the Environmental Quality 
 27.7   Board Monitor and separate copies mailed to members of the 
 27.8   technical evaluation panel, the applicant, the board, individual 
 27.9   members of the public who request a copy, the board of 
 27.10  supervisors of the soil and water conservation district, the 
 27.11  managers of the watershed district, the board of county 
 27.12  commissioners, if one exists, and the commissioner of 
 27.13  agriculture, and the mayors of the cities within the area 
 27.14  watershed natural resources.  Notice in the Environmental 
 27.15  Quality Board Monitor is not required for projects involving the 
 27.16  draining or filling of less than 10,000 square feet of wetlands. 
 27.17     (b) Within ten days of the decision approving or denying a 
 27.18  replacement plan under this section for an activity affecting 
 27.19  less than 10,000 square feet of wetland, a summary of the 
 27.20  approval or denial must be submitted for publication in the 
 27.21  Environmental Quality Board Monitor and separate copies mailed 
 27.22  to the applicant, individual members of the public who request a 
 27.23  copy, the members of the technical evaluation panel, and the 
 27.24  managers of the watershed district, if applicable.  At the same 
 27.25  time, the local government unit must give general notice to the 
 27.26  public in a general circulation newspaper within the area 
 27.27  affected. 
 27.28     Sec. 22.  Minnesota Statutes 1994, section 103G.2242, 
 27.29  subdivision 9, is amended to read: 
 27.30     Subd. 9.  [APPEAL.] Appeal of the a replacement plan, 
 27.31  exemption, or no-loss decision may be obtained by mailing 
 27.32  a notice of appeal petition and payment of a filing fee of $200 
 27.33  to the board within 30 15 days after the postmarked date of the 
 27.34  mailing specified in subdivision 7.  The local government unit 
 27.35  may require the petitioner to post a bond in an amount not to 
 27.36  exceed $500.  If appeal is not sought within 30 days, the 
 28.1   decision becomes final.  Appeal may be made by the wetland 
 28.2   owner, by any of those to whom notice is required to be mailed 
 28.3   under subdivision 7, or by 100 residents of the county in which 
 28.4   a majority of the wetland is located.  Within 30 days after 
 28.5   receiving a petition, the board shall decide whether to grant 
 28.6   the petition and hear the appeal.  The board shall grant the 
 28.7   petition unless the board finds that the appeal is meritless, 
 28.8   trivial, or brought solely for the purposes of delay; that the 
 28.9   petitioner has not exhausted all local administrative remedies; 
 28.10  or that the petitioner has not posted a bond if required by the 
 28.11  local government unit.  In determining whether to grant the 
 28.12  appeal, the board shall also consider the size of the wetland, 
 28.13  other factors in controversy, any patterns of similar acts by 
 28.14  the local government unit or petitioner, and the consequences of 
 28.15  the delay resulting from the appeal.  If the petition is 
 28.16  accepted, the filing fee will be retained by the board to defray 
 28.17  administrative costs.  If the appeal is denied, the filing fee 
 28.18  must be returned to the petitioner.  All appeals must be heard 
 28.19  by the committee for dispute resolution of the board, and a 
 28.20  decision made within 60 days of the appeal.  The decision must 
 28.21  be served by mail on the parties to the appeal, and is not 
 28.22  subject to the provisions of chapter 14.  The A decision whether 
 28.23  to grant a petition for appeal and a decision on the merits of 
 28.24  an appeal must be considered the decision of an agency in a 
 28.25  contested case for purposes of judicial review under sections 
 28.26  14.63 to 14.69. 
 28.27     Sec. 23.  Minnesota Statutes 1994, section 103G.2242, 
 28.28  subdivision 12, is amended to read: 
 28.29     Subd. 12.  [REPLACEMENT CREDITS.] (a) No public or private 
 28.30  wetland restoration, enhancement, or construction may be allowed 
 28.31  for replacement unless specifically designated for replacement 
 28.32  and paid for by the individual or organization performing the 
 28.33  wetland restoration, enhancement, or construction, and is 
 28.34  completed prior to any draining or filling of the wetland. 
 28.35     This subdivision Paragraph (a) does not apply to a wetland 
 28.36  whose owner has paid back with interest the individual or 
 29.1   organization restoring, enhancing, or constructing the wetland. 
 29.2      (b) Notwithstanding section 103G.222, paragraph (i), the 
 29.3   following actions are eligible for replacement credit as 
 29.4   determined by the local government unit, including enrollment in 
 29.5   a statewide wetlands bank: 
 29.6      (1) Reestablishment of permanent vegetative cover on a 
 29.7   wetland that was planted with annually seeded crops, was in a 
 29.8   crop rotation seeding of pasture grasses or legumes, or was 
 29.9   required to be set aside to receive price supports or other 
 29.10  payments under United States Code, title 7, sections 1421 to 
 29.11  1469, in six of the last ten years prior to January 1, 1991.  
 29.12  Replacement credit may not exceed 50 percent of the total 
 29.13  wetland area vegetatively restored. 
 29.14     (2) Buffer areas of permanent vegetative cover established 
 29.15  on upland adjacent to replacement wetlands.  The upland buffer 
 29.16  must be established at the time of wetland mitigation and 
 29.17  replacement credit for such buffers cannot exceed 50 percent of 
 29.18  the mitigated wetland area and can only be used for replacement 
 29.19  above a 1:1 ratio. 
 29.20     (3) Wetlands restored for conservation purposes under 
 29.21  terminated easements or contracts.  Up to 75 percent of the 
 29.22  restored wetland area is eligible for replacement credit.  
 29.23  Adjacent upland buffer areas reestablished to permanent 
 29.24  vegetative cover are eligible for replacement credit above a 1:1 
 29.25  ratio in an amount not to exceed 25 percent of the restored 
 29.26  wetland area. 
 29.27     (4) Water quality treatment ponds constructed to pretreat 
 29.28  storm water runoff prior to discharge to wetlands, public 
 29.29  waters, or other water bodies.  The water quality treatment 
 29.30  ponds must be associated with an ongoing or proposed project 
 29.31  that will impact a wetland.  Replacement credit for the 
 29.32  treatment ponds may not exceed 50 percent of the treatment pond 
 29.33  area and may only be used for replacement above a 1:1 ratio. 
 29.34     Sec. 24.  Minnesota Statutes 1994, section 103G.237, 
 29.35  subdivision 4, is amended to read: 
 29.36     Subd. 4.  [COMPENSATION.] (a) The board shall award 
 30.1   compensation in an amount equal to the greater of: 
 30.2      (1) 50 percent of the value of the wetland, calculated by 
 30.3   multiplying the acreage of the wetland by the greater of: 
 30.4      (1) (i) the average equalized estimated market value of 
 30.5   agricultural property in the township as established by the 
 30.6   commissioner of revenue at the time application for compensation 
 30.7   is made; or 
 30.8      (2) (ii) the assessed value per acre of the parcel 
 30.9   containing the wetland, based on the assessed value of the 
 30.10  parcel as stated on the most recent tax statement; or 
 30.11     (2) $200 per acre of wetland subject to the replacement 
 30.12  plan, increased or decreased by the percentage change of the 
 30.13  assessed valuation of land in the township where the wetland is 
 30.14  located from the 1995 valuation. 
 30.15     (b) A person who receives compensation under paragraph (a) 
 30.16  shall convey to the board a permanent conservation easement as 
 30.17  described in section 103F.515, subdivision 4.  An easement 
 30.18  conveyed under this paragraph is subject to correction and 
 30.19  enforcement under section 103F.515, subdivisions 8 and 9. 
 30.20     Sec. 25.  Minnesota Statutes 1994, section 103G.237, is 
 30.21  amended by adding a subdivision to read: 
 30.22     Subd. 5.  [COMPENSATION CLAIMS AGAINST LOCAL GOVERNMENT 
 30.23  UNITS.] (a) At the request of a local government unit against 
 30.24  which a compensation action is brought based at least in part on 
 30.25  the local government unit's application of section 103G.222, 
 30.26  103G.2241, 103G.2242, 103G.237, or 103G.2372, or rules adopted 
 30.27  by the board to implement these sections, the state, through the 
 30.28  attorney general, shall intervene in the action on behalf of the 
 30.29  local government unit and shall thereafter be considered a 
 30.30  defendant in the action.  A local government unit making a 
 30.31  request under this paragraph shall provide the attorney general 
 30.32  with a copy of the complaint as soon as possible after being 
 30.33  served.  If requested by the attorney general, the court shall 
 30.34  grant additional time to file an answer equal to the time 
 30.35  between service of the complaint on the local government unit 
 30.36  and receipt of the complaint by the attorney general. 
 31.1      (b) The state is liable for costs, damages, fees, and 
 31.2   compensation awarded in the action based on the local 
 31.3   government's adoption or implementation of standards that are 
 31.4   required by state law, as determined by the court.  The local 
 31.5   government unit is liable for costs, damages, fees, and 
 31.6   compensation awarded in the action based on local standards that 
 31.7   are more restrictive than state law and rules. 
 31.8      (c) For the purposes of this subdivision, "compensation 
 31.9   action" means an action in which the plaintiff seeks 
 31.10  compensation for a taking of private property under the state or 
 31.11  federal constitution. 
 31.12     Sec. 26.  Minnesota Statutes 1994, section 103G.2373, is 
 31.13  amended to read: 
 31.14     103G.2373 [ANNUAL WETLANDS REPORT.] 
 31.15     By January March 1 of each year, the commissioner of 
 31.16  natural resources and the board of water and soil resources 
 31.17  shall jointly report to the committees of the legislature with 
 31.18  jurisdiction over matters relating to agriculture, the 
 31.19  environment, and natural resources on: 
 31.20     (1) the status of implementation of state laws and programs 
 31.21  relating to wetlands; 
 31.22     (2) the quantity, quality, acreage, types, and public value 
 31.23  of wetlands in the state; and 
 31.24     (3) changes in the items in clause (2). 
 31.25     Sec. 27.  Minnesota Statutes 1994, section 115.03, is 
 31.26  amended by adding a subdivision to read: 
 31.27     Subd. 4a.  [SECTION 401 CERTIFICATIONS.] (a) The following 
 31.28  definitions apply to this subdivision: 
 31.29     (1) "section 401 certification" means a water quality 
 31.30  certification required under section 401 of the federal Clean 
 31.31  Water Act, United States Code, title 33, section 1341; and 
 31.32     (2) "nationwide permit" means a nationwide general permit 
 31.33  issued by the United States Army Corps of Engineers and listed 
 31.34  in Code of Federal Regulations, title 40, part 330, appendix A. 
 31.35     (b) The agency is responsible for providing section 401 
 31.36  certifications for nationwide permits. 
 32.1      (c) Before making a final decision on a section 401 
 32.2   certification for regional conditions on a nationwide permit, 
 32.3   the agency shall hold at least one public meeting outside the 
 32.4   seven-county metropolitan area. 
 32.5      (d) In addition to other notice required by law, the agency 
 32.6   shall provide written notice of a meeting at which the agency 
 32.7   will be considering a section 401 certification for regional 
 32.8   conditions on a nationwide permit at least 21 days before the 
 32.9   date of the meeting to the members of the senate and house of 
 32.10  representatives environment and natural resources committees, 
 32.11  the senate agriculture and rural development committee, and the 
 32.12  house of representatives agriculture committee. 
 32.13     Sec. 28.  Laws 1994, chapter 643, section 26, subdivision 
 32.14  3, is amended to read: 
 32.15  Subd. 3.  RIM Conservation Easement 
 32.16  Acquisition                                           9,000,000
 32.17  This appropriation is for the purposes 
 32.18  specified in paragraphs (a) to (c). 
 32.19  (a) To acquire conservation easements 
 32.20  from landowners on marginal lands to 
 32.21  protect soil and water quality and to 
 32.22  support fish and wildlife habitat as 
 32.23  provided in Minnesota Statutes, section 
 32.24  103F.515. 
 32.25  (b) To acquire perpetual conservation 
 32.26  easements on existing type 1, 2, and 3 
 32.27  wetlands, adjacent lands, and for the 
 32.28  establishment of permanent cover on 
 32.29  adjacent lands, in accordance with 
 32.30  Minnesota Statutes, section 103F.516.  
 32.31  (c) Up to $300,000 of this 
 32.32  appropriation may be used to establish 
 32.33  and restore wetlands to provide credits 
 32.34  for deposit in the state wetland bank 
 32.35  established under Minnesota Statutes, 
 32.36  section 103G.2242, subdivision 1.  The 
 32.37  board may enter into agreements with 
 32.38  local government units and the 
 32.39  commissioner of transportation for this 
 32.40  purpose.  An agreement with the 
 32.41  commissioner of transportation may 
 32.42  provide for borrowing or acquiring 
 32.43  existing wetland credits from the 
 32.44  wetland bank established by the 
 32.45  commissioner.  Proceeds from the sale 
 32.46  of credits provided under this 
 32.47  paragraph are appropriated to the board 
 32.48  for the purposes of paragraph (b).  
 32.49  Sales of credits under this paragraph 
 32.50  to public entities are not subject to 
 32.51  Minnesota Statutes, section 16A.695. 
 32.52     Sec. 29.  [STUDY OF WETLAND BANKING ALTERNATIVES; REPORT.] 
 33.1      The wetland heritage advisory committee, under the auspices 
 33.2   of the state comprehensive wetlands planning project, shall 
 33.3   investigate alternative procedures and policies for improving 
 33.4   the current wetland banking system in the state.  The study must 
 33.5   address ecological, hydrological, and economic aspects of 
 33.6   wetland banking.  The study and any recommendations must be 
 33.7   reported to the appropriate policy committees of the legislature 
 33.8   by January 1, 1997. 
 33.9      Sec. 30.  [LINCOLN-PIPESTONE CALCAREOUS FEN.] 
 33.10     The fen management plan required by Minnesota Statutes, 
 33.11  section 103G.223 for sections 5, 6, 8, and 17 of T114N, R46W, 
 33.12  and the Burr Well Field must be jointly developed by the 
 33.13  commissioner of natural resources and the Lincoln-Pipestone 
 33.14  rural water district and must provide that water will be 
 33.15  supplied to the existing customers for domestic use.  The size 
 33.16  of livestock operations that exist or are under construction 
 33.17  before August 1, 1995, shall be included as domestic use. 
 33.18     Sec. 31.  [REPEALER.] 
 33.19     Minnesota Statutes 1994, section 103G.2242, subdivision 13, 
 33.20  is repealed.