1.1                          A bill for an act 
  1.2             relating to capital improvements; providing for water 
  1.3             pollution control grants; appropriating money. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [POLICY.] 
  1.6      It is the policy of the state to pay one-half of the cost 
  1.7   of compliance with wastewater treatment standards imposed on 
  1.8   cities located outside the metropolitan area of the state.  This 
  1.9   policy will encourage the state to: 
  1.10     (1) mandate only those wastewater treatment standards that 
  1.11  are necessary to protect the state's water quality; 
  1.12     (2) establish priorities so that state and local funding 
  1.13  sources are used for the greatest environmental benefit, and 
  1.14  ensure high priority projects are done in a timely manner; and 
  1.15     (3) reduce the burden on individual communities for 
  1.16  protection of water resources used by the entire state. 
  1.17     Sec. 2.  [APPROPRIATION FOR WATER POLLUTION CONTROL.] 
  1.18     The sum of $75,000,000 is appropriated from the bond 
  1.19  proceeds fund to the public facilities authority to provide 
  1.20  state grants to cities located outside the metropolitan area or 
  1.21  to pay 50 percent of the costs to design, construct, expand, or 
  1.22  upgrade wastewater treatment or sludge facilities.  
  1.23  Notwithstanding any other law, the grant shall equal 50 percent 
  1.24  of the cost of projects begun during fiscal year 1995, 1996, 
  2.1   1997, or 1998, unless the city agrees to a lesser percentage of 
  2.2   project cost.  This appropriation is available until the project 
  2.3   is completed.  Of this amount, $10,000,000 shall be used for 
  2.4   grants to cities with a population of less than 5,000. 
  2.5      Sec. 3.  [INFLOW AND INFILTRATION GRANTS.] 
  2.6      The sum of $25,000,000 is appropriated from the bond 
  2.7   proceeds fund to the public facilities authority to provide 
  2.8   state grants to cities located outside the metropolitan area to 
  2.9   pay 50 percent of the costs to design, construct, expand, or 
  2.10  upgrade sewer systems to correct inflow and infiltration 
  2.11  problems ordered by the pollution control agency.  
  2.12  Notwithstanding any other law, the grant shall equal 50 percent 
  2.13  of the cost of projects begun during fiscal year 1995, 1996, 
  2.14  1997, or 1998, unless the city agrees to a lesser percentage of 
  2.15  project cost.  This appropriation is available until expended.  
  2.16  Of this amount, $2,500,000 shall be used for matching grants to 
  2.17  cities with a population of less than 5,000.  
  2.18     Sec. 4.  [PRIORITIZATION OF PROJECTS.] 
  2.19     If the bond authorization is not enough to fund all the 
  2.20  projects for which matching grants are requested under sections 
  2.21  2 and 3, the commissioner of the pollution control agency shall 
  2.22  devise a priority system for selecting projects to receive a 
  2.23  grant based on the need to abate or prevent pollution and the 
  2.24  cost of the project.  The authority shall award grants under 
  2.25  sections 2 and 3 according to the priority system established by 
  2.26  the commissioner of the pollution control agency.  
  2.27     Sec. 5.  [BOND AUTHORIZATION.] 
  2.28     For the purpose of providing money appropriated in sections 
  2.29  2 and 3 for grants to cities for the design, construction, 
  2.30  expansion, or other improvements of a capital nature needed for 
  2.31  the prevention, control, and abatement of water pollution, the 
  2.32  commissioner of finance is authorized upon request of the public 
  2.33  facilities authority to sell and issue Minnesota state water 
  2.34  pollution control bonds in the amount of $100,000,000 in the 
  2.35  manner and upon the conditions prescribed in Minnesota Statutes, 
  2.36  section 116.17, and in the Minnesota Constitution, article XI, 
  3.1   sections 4 to 7.  The proceeds of the bonds, except as provided 
  3.2   in Minnesota Statutes, section 116.17, subdivision 5, are 
  3.3   appropriated and shall be credited to a Minnesota state water 
  3.4   pollution control account in the bond proceeds fund.  The amount 
  3.5   of bonds issued pursuant to this authorization shall not exceed 
  3.6   at any time the amount needed to produce a balance in the water 
  3.7   pollution control account equal to the aggregate amount of 
  3.8   grants then approved and not previously disbursed, plus the 
  3.9   amount of grants to be approved in the current and the following 
  3.10  fiscal year, as estimated by the pollution control agency.  
  3.11  Disbursement of grant money to cities shall be made in the same 
  3.12  manner as disbursements under Minnesota Statutes, section 
  3.13  116.16, subdivision 4.