1.1                          A bill for an act 
  1.2             relating to natural resources; modifying provisions 
  1.3             relating to wetlands; appropriating money; amending 
  1.4             Minnesota Statutes 1994, sections 103B.3355; 103F.612, 
  1.5             subdivisions 2, 3, 5, 6, and 7; 103G.005, by adding 
  1.6             subdivisions; 103G.222; 103G.2241; 103G.2242, 
  1.7             subdivisions 1, 2, 4, 6, 7, 9, and 12; 103G.237, 
  1.8             subdivision 4, and by adding a subdivision; 103G.2373; 
  1.9             and 115.03, by adding a subdivision; repealing 
  1.10            Minnesota Statutes 1994, section 103G.2242, 
  1.11            subdivision 13. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 103B.3355, is 
  1.14  amended to read: 
  1.15     103B.3355 [PUBLIC VALUE CRITERIA FOR WETLANDS.] 
  1.16     (a) The board of water and soil resources, in consultation 
  1.17  with the concurrence of the commissioner of natural resources, 
  1.18  shall may adopt rules establishing criteria to determine 
  1.19  the scientific methodologies for determining the functions and 
  1.20  public value of wetlands.  The rules must consider the public 
  1.21  benefit and use of the wetlands and include criteria to 
  1.22  determine the functions and values of wetlands for:  
  1.23     (1) criteria to determine the benefits of wetlands for 
  1.24  water quality, including filtering of pollutants to surface and 
  1.25  groundwater, utilization of nutrients that would otherwise 
  1.26  pollute public waters, trapping of sediments, and utilization of 
  1.27  the wetland as a recharge area for groundwater; 
  1.28     (2) criteria to determine the benefits of wetlands for 
  2.1   floodwater retention, including the potential for flooding in 
  2.2   the watershed, the value of property subject to flooding, and 
  2.3   the reduction in potential flooding by the wetland; 
  2.4      (3) criteria to determine the benefits of wetlands for 
  2.5   public recreation, including wildlife habitat, hunting and 
  2.6   fishing areas, wildlife breeding areas, wildlife viewing areas, 
  2.7   aesthetically enhanced areas, and nature areas; 
  2.8      (4) criteria to determine the benefits of wetlands for 
  2.9   commercial uses, including wild rice growing and harvesting and 
  2.10  aquaculture; and 
  2.11     (5) criteria to determine the benefits of wetlands for 
  2.12  other public uses.  
  2.13     (b) The criteria methodologies established under this 
  2.14  section, or other methodologies that include the criteria in 
  2.15  paragraph (a) and are approved by the board with the concurrence 
  2.16  of the commissioner of natural resources, must be used to 
  2.17  determine the public value of wetlands in the state.  The board 
  2.18  of water and soil resources, in consultation with the 
  2.19  commissioner of natural resources, shall also use the criteria 
  2.20  methodologies in identifying regions of the state where 
  2.21  preservation, enhancement, restoration, and establishment of 
  2.22  wetlands would have high public value.  Before the criteria 
  2.23  methodologies are adopted, the board, in consultation with the 
  2.24  commissioner, may identify high priority wetland regions using 
  2.25  available information relating to the factors listed in 
  2.26  paragraph (a).  The board shall notify local units of government 
  2.27  with water planning authority of these high priority regions. 
  2.28     Sec. 2.  Minnesota Statutes 1994, section 103F.612, 
  2.29  subdivision 2, is amended to read: 
  2.30     Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
  2.31  the county where a wetland is located for designation of a 
  2.32  wetland preservation area in a high priority wetland area 
  2.33  identified in a comprehensive local water plan, as defined in 
  2.34  section 103B.3363, subdivision 3, and located within a high 
  2.35  priority wetland region designated by the board of water and 
  2.36  soil resources if the county chooses to accept wetland 
  3.1   preservation area applications.  The application must be made on 
  3.2   forms provided by the board.  If a wetland is located in more 
  3.3   than one county, the application must be submitted to the county 
  3.4   where the majority of the wetland is located.  
  3.5      (b) The application must contain at least the following 
  3.6   information and other information the board of soil and water 
  3.7   resources requires:  
  3.8      (1) legal description of the area to be approved, which 
  3.9   must include an upland strip at least 16-1/2 feet in width 
  3.10  around the perimeter of wetlands within the area and may include 
  3.11  total upland area of up to four acres for each acre of wetland; 
  3.12     (2) parcel identification numbers where designated by the 
  3.13  county auditor; 
  3.14     (3) name and address of the owner; 
  3.15     (4) a witnessed signature of the owner covenanting that the 
  3.16  land will be preserved as a wetland and will only be used in 
  3.17  accordance with conditions prescribed by the board of water and 
  3.18  soil resources; and 
  3.19     (5) a statement that the restrictive covenant will be 
  3.20  binding on the owner and the owner's successors or assigns, and 
  3.21  will run with the land.  
  3.22     (c) The upland strip required in paragraph (b), clause (1), 
  3.23  must be planted with permanent vegetation other than a noxious 
  3.24  weed. 
  3.25     (d) For registered property, the owner shall submit the 
  3.26  owner's duplicate certificate of title with the application.  
  3.27     Sec. 3.  Minnesota Statutes 1994, section 103F.612, 
  3.28  subdivision 3, is amended to read: 
  3.29     Subd. 3.  [REVIEW AND NOTICE.] Upon receipt of an 
  3.30  application, the county shall determine if all material required 
  3.31  by subdivision 2 has been submitted and, if so, shall determine 
  3.32  that the application is complete.  The term "date of application"
  3.33  means the date the application is determined to be complete by 
  3.34  the county.  The county shall send a copy of the application to 
  3.35  the county assessor, the regional development commission, where 
  3.36  applicable, the board of water and soil resources, and the soil 
  4.1   and water conservation district where the land is located.  The 
  4.2   soil and water conservation district shall prepare an advisory 
  4.3   statement of existing and potential preservation problems or 
  4.4   conflicts and send the statement to the owner of record and to 
  4.5   the county.  The county shall notify the landowner of the 
  4.6   acceptance or denial of the application within 60 days after 
  4.7   receipt of the application. 
  4.8      Sec. 4.  Minnesota Statutes 1994, section 103F.612, 
  4.9   subdivision 5, is amended to read: 
  4.10     Subd. 5.  [COMMENCEMENT OF WETLAND PRESERVATION AREA.] The 
  4.11  wetland is a wetland preservation area commencing 30 days from 
  4.12  the date the county determines notifies the landowner of 
  4.13  acceptance of the application is complete under subdivision 3.  
  4.14     Sec. 5.  Minnesota Statutes 1994, section 103F.612, 
  4.15  subdivision 6, is amended to read: 
  4.16     Subd. 6.  [FEE.] The county may require an application fee, 
  4.17  not to exceed $50 to defray administrative costs of the program. 
  4.18     Sec. 6.  Minnesota Statutes 1994, section 103F.612, 
  4.19  subdivision 7, is amended to read: 
  4.20     Subd. 7.  [MAPS.] The board of water and soil resources 
  4.21  county shall maintain wetland preservation area maps 
  4.22  illustrating land covenanted as wetland preservation areas.  
  4.23     Sec. 7.  Minnesota Statutes 1994, section 103G.005, is 
  4.24  amended by adding a subdivision to read: 
  4.25     Subd. 10b.  [FIFTY TO 80 PERCENT AREA.] "Fifty to 80 
  4.26  percent area" means a county or watershed with at least 50 but 
  4.27  less than 80 percent of the presettlement wetland acreage intact.
  4.28     Sec. 8.  Minnesota Statutes 1994, section 103G.005, is 
  4.29  amended by adding a subdivision to read: 
  4.30     Subd. 10c.  [GREATER THAN 80 PERCENT AREA.] "Greater than 
  4.31  80 percent area" means a county or watershed where 80 percent or 
  4.32  more of the presettlement wetland acreage is intact and: 
  4.33     (1) ten percent or more of the current total land area is 
  4.34  wetland; or 
  4.35     (2) 50 percent or more of the current total land area is 
  4.36  state or federal land. 
  5.1      Sec. 9.  Minnesota Statutes 1994, section 103G.005, is 
  5.2   amended by adding a subdivision to read: 
  5.3      Subd. 10d.  [INFRASTRUCTURE.] "Infrastructure" means storm 
  5.4   water and sanitary sewer piping, outfalls, inlets, culverts, 
  5.5   bridges, and any other work defined specifically by a local 
  5.6   government unit as constituting a capital improvement to a 
  5.7   specific parcel within the context of an approved development 
  5.8   plan, but does not include roads or drainage systems. 
  5.9      Sec. 10.  Minnesota Statutes 1994, section 103G.005, is 
  5.10  amended by adding a subdivision to read: 
  5.11     Subd. 10e.  [LESS THAN 50 PERCENT AREA.] "Less than 50 
  5.12  percent area" means a county or watershed with less than 50 
  5.13  percent of the presettlement wetland acreage intact. 
  5.14     Sec. 11.  Minnesota Statutes 1994, section 103G.005, is 
  5.15  amended by adding a subdivision to read: 
  5.16     Subd. 14b.  [PRESETTLEMENT WETLAND.] "Presettlement wetland"
  5.17  means a wetland or public waters wetland that existed in this 
  5.18  state prior to statehood in 1858. 
  5.19     Sec. 12.  Minnesota Statutes 1994, section 103G.005, is 
  5.20  amended by adding a subdivision to read: 
  5.21     Subd. 18a.  [SHORELAND WETLAND PROTECTION ZONE.] "Shoreland 
  5.22  wetland protection zone" means: 
  5.23     (1) land within 1,000 feet from the ordinary high water 
  5.24  level of a lake, pond, or flowage identified on the public 
  5.25  waters inventory under section 103G.201 that is at least ten 
  5.26  acres in size within municipalities and at least 25 acres in 
  5.27  size in unincorporated areas, or a lake identified in the 
  5.28  shoreland ordinance of the local governmental unit; or 
  5.29     (2) land within 300 feet from the ordinary high water level 
  5.30  of a river or stream identified on the public waters inventory 
  5.31  under section 103G.201, or a stream identified in the shoreland 
  5.32  ordinance of the local governmental unit. 
  5.33     Sec. 13.  Minnesota Statutes 1994, section 103G.005, is 
  5.34  amended by adding a subdivision to read: 
  5.35     Subd. 18b.  [SILVICULTURE.] "Silviculture" means the 
  5.36  scientific management of forest trees. 
  6.1      Sec. 14.  Minnesota Statutes 1994, section 103G.005, is 
  6.2   amended by adding a subdivision to read: 
  6.3      Subd. 18c.  [UTILITY.] "Utility" means a sanitary sewer, 
  6.4   storm sewer, potable water distribution, and transmission, 
  6.5   distribution, or furnishing, at wholesale or retail, of natural 
  6.6   or manufactured gas, electricity, telephone, or radio service or 
  6.7   communications. 
  6.8      Sec. 15.  Minnesota Statutes 1994, section 103G.222, is 
  6.9   amended to read: 
  6.10     103G.222 [REPLACEMENT OF WETLANDS.] 
  6.11     (a) After the effective date of the rules adopted under 
  6.12  section 103B.3355 or 103G.2242, whichever is later, wetlands 
  6.13  must not be drained or filled, wholly or partially, unless 
  6.14  replaced by restoring or creating wetland areas of at least 
  6.15  equal public value under a replacement plan approved as provided 
  6.16  in section 103G.2242, a replacement plan under a local 
  6.17  governmental unit's comprehensive wetland protection and 
  6.18  management plan approved by the board under section 103G.2242, 
  6.19  subdivision 1, paragraph (c), or, if a permit to mine is 
  6.20  required under section 93.481, under a mining reclamation plan 
  6.21  approved by the commissioner under the permit to mine.  Mining 
  6.22  reclamation plans shall apply the same principles and standards 
  6.23  for replacing wetlands by restoration or creation of wetland 
  6.24  areas that are applicable to mitigation plans approved as 
  6.25  provided in section 103G.2242.  Public value must be determined 
  6.26  using a methodology established or approved under section 
  6.27  103B.3355. 
  6.28     (b) Replacement must be guided by the following principles 
  6.29  in descending order of priority: 
  6.30     (1) avoiding the direct or indirect impact of the activity 
  6.31  that may destroy or diminish the wetland; 
  6.32     (2) minimizing the impact by limiting the degree or 
  6.33  magnitude of the wetland activity and its implementation; 
  6.34     (3) rectifying the impact by repairing, rehabilitating, or 
  6.35  restoring the affected wetland environment; 
  6.36     (4) reducing or eliminating the impact over time by 
  7.1   preservation and maintenance operations during the life of the 
  7.2   activity; and 
  7.3      (5) compensating for the impact by restoring a wetland; and 
  7.4      (6) compensating for the impact by replacing or providing 
  7.5   substitute wetland resources or environments. 
  7.6      For a project involving the drainage or filling of wetlands 
  7.7   outside a shoreland wetland protection zone, outside the 
  7.8   seven-county metropolitan area, and outside any other urban 
  7.9   area, in an amount not exceeding 10,000 square feet more than 
  7.10  the applicable amount in section 103G.2241, subdivision 9, the 
  7.11  local government unit may make a sequencing determination 
  7.12  without a written alternatives analysis from the applicant. 
  7.13     (c) If a wetland is located in a cultivated field, then 
  7.14  replacement must be accomplished through restoration only 
  7.15  without regard to the priority order in paragraph (b), provided 
  7.16  that a deed restriction is placed on the altered wetland 
  7.17  prohibiting nonagricultural use for at least ten years.  
  7.18     (d) Restoration and replacement of wetlands must be 
  7.19  accomplished in accordance with the ecology of the landscape 
  7.20  area affected. 
  7.21     (e) Replacement shall be within the same watershed or 
  7.22  county as the impacted wetlands, as based on the wetland 
  7.23  evaluation in section 103G.2242, subdivision 2, except that 
  7.24  counties or watersheds in which 80 percent or more of the 
  7.25  presettlement wetland acreage is intact may accomplish 
  7.26  replacement in counties or watersheds in which 50 percent or 
  7.27  more of the presettlement wetland acreage has been filled, 
  7.28  drained, or otherwise degraded.  Wetlands impacted by public 
  7.29  transportation projects may be replaced statewide, provided they 
  7.30  are approved by the commissioner under an established wetland 
  7.31  banking system, or except for: 
  7.32     (1) wetlands impacted in a less than 50 percent area, which 
  7.33  must be replaced in a less than 50 percent area; and 
  7.34     (2) wetlands impacted in a shoreland wetland protection 
  7.35  zone, the seven-county metropolitan area, or any other urban 
  7.36  area, which must be replaced in the same watershed. 
  8.1   Replacement of wetlands may be accomplished under the rules for 
  8.2   wetland banking as provided for under section 103G.2242. 
  8.3      (f) Except as provided in paragraph (g), for a wetland 
  8.4   located on nonagricultural land, replacement must be in the 
  8.5   ratio of two acres of replaced wetland for each acre of drained 
  8.6   or filled wetland. 
  8.7      (g) For a wetland located on agricultural land or in 
  8.8   counties or watersheds in which 80 percent or more of the 
  8.9   presettlement wetland acreage exists, replacement must be in the 
  8.10  ratio of one acre of replaced wetland for each acre of drained 
  8.11  or filled wetland.  
  8.12     (h) Wetlands that are restored or created as a result of an 
  8.13  approved replacement plan are subject to the provisions of this 
  8.14  section for any subsequent drainage or filling. 
  8.15     (i) Except in counties or watersheds where 80 percent or 
  8.16  more of the presettlement wetlands are intact, only wetlands 
  8.17  that have been restored from previously drained or filled 
  8.18  wetlands, wetlands created by excavation in nonwetlands, 
  8.19  wetlands created by dikes or dams along public or private 
  8.20  drainage ditches, or wetlands created by dikes or dams 
  8.21  associated with the restoration of previously drained or filled 
  8.22  wetlands may be used in a statewide banking program established 
  8.23  in rules adopted under section 103G.2242, subdivision 1.  
  8.24  Modification or conversion of nondegraded naturally occurring 
  8.25  wetlands from one type to another are not eligible for 
  8.26  enrollment in a statewide wetlands bank. 
  8.27     (j) The technical evaluation panel established under 
  8.28  section 103G.2242, subdivision 2, shall ensure that sufficient 
  8.29  time has occurred for the wetland to develop wetland 
  8.30  characteristics of soils, vegetation, and hydrology before 
  8.31  recommending that the wetland be deposited in the statewide 
  8.32  wetland bank.  If the technical evaluation panel has reason to 
  8.33  believe that the wetland characteristics may change 
  8.34  substantially, the panel shall postpone its recommendation until 
  8.35  the wetland has stabilized. 
  8.36     (k) This section and sections 103G.223 to 103G.2242, 
  9.1   103G.2364, and 103G.2365 apply to the state and its departments 
  9.2   and agencies. 
  9.3      (l) For projects involving filling of wetlands associated 
  9.4   with a public transportation project in counties and watersheds 
  9.5   with 80 percent or more of their presettlement wetland 
  9.6   remaining, local government public transportation authorities 
  9.7   may purchase credits from the state wetland bank established 
  9.8   with proceeds from Laws 1994, chapter 643, section 26, 
  9.9   subdivision 3, paragraph (c).  Wetland banking credits may be 
  9.10  purchased at the least of the following: 
  9.11     (1) the cost to the state to establish the credits; 
  9.12     (2) two times the Minnesota department of revenue 
  9.13  determined average estimated value of agricultural land in the 
  9.14  township where the road project is located; or 
  9.15     (3) two times the average value of land in the immediate 
  9.16  vicinity of the road project as determined by the county 
  9.17  assessor.  In no case shall the purchase price be less than $400 
  9.18  per acre. 
  9.19     (m) County, city, and town road authorities do not have to 
  9.20  do an individual replacement plan for wetland draining or 
  9.21  filling resulting from the repair, maintenance, or 
  9.22  rehabilitation of previously authorized, currently serviceable 
  9.23  public roads, provided that: 
  9.24     (1) draining and filling is minimized; and 
  9.25     (2) the authorities for the public transportation projects 
  9.26  submit annual reports by March 1 to the board, the commissioner 
  9.27  of transportation, and members of the public requesting a copy 
  9.28  that indicates the acres, types, and locations of wetlands 
  9.29  filled or drained during the previous year and an estimate of 
  9.30  the wetland to be filled or drained during the upcoming year. 
  9.31  The board, in consultation with the department of natural 
  9.32  resources and the pollution control agency, shall provide 
  9.33  wetland replacement in critical urban and rural watershed 
  9.34  areas.  If a road authority fails to submit an annual report or 
  9.35  report an impact by the required date, the road authority shall 
  9.36  pay to the board twice the board's costs of providing the 
 10.1   wetland replacement for the unreported projects.  The technical 
 10.2   evaluation panel shall review minimization and delineation 
 10.3   decisions made by the public transportation authority if 
 10.4   requested to do so by the local government unit, the landowner, 
 10.5   or a member of the technical evaluation panel.  Public 
 10.6   transportation authorities are allowed to deviate from federal 
 10.7   and state design standards when practical and reasonable to 
 10.8   avoid wetland filling or draining.  For the purposes of this 
 10.9   paragraph, "currently serviceable" means usable as is or with 
 10.10  some maintenance, but not so degraded as to essentially require 
 10.11  reconstruction. 
 10.12     (n) If a person seeks a replacement plan after the proposed 
 10.13  project has already impacted the wetland, the local government 
 10.14  authority may require the person to replace the impacted 
 10.15  wetland's area and function at a ratio higher than the 
 10.16  replacement ratio otherwise required. 
 10.17     Sec. 16.  Minnesota Statutes 1994, section 103G.2241, is 
 10.18  amended to read: 
 10.19     103G.2241 [EXEMPTIONS.] 
 10.20     (a) Subject to the conditions in paragraph (b), a 
 10.21  replacement plan for wetlands is not required for:  
 10.22     (1) activities in a wetland that was planted with annually 
 10.23  seeded crops, was in a crop rotation seeding of pasture grasses 
 10.24  or legumes, or was required to be set aside to receive price 
 10.25  support or other payments under United States Code, title 7, 
 10.26  sections 1421 to 1469, in six of the last ten years prior to 
 10.27  January 1, 1991; 
 10.28     (2) activities in a wetland that is or has been enrolled in 
 10.29  the federal conservation reserve program under United States 
 10.30  Code, title 16, section 3831, that: 
 10.31     (i) was planted with annually seeded crops, was in a crop 
 10.32  rotation seeding, or was required to be set aside to receive 
 10.33  price support or payment under United States Code, title 7, 
 10.34  sections 1421 to 1469, in six of the last ten years prior to 
 10.35  being enrolled in the program; and 
 10.36     (ii) has not been restored with assistance from a public or 
 11.1   private wetland restoration program; 
 11.2      (3) activities necessary to repair and maintain existing 
 11.3   public or private drainage systems as long as wetlands that have 
 11.4   been in existence for more than 20 years are not drained; 
 11.5      (4) activities in a wetland that has received a commenced 
 11.6   drainage determination provided for by the federal Food Security 
 11.7   Act of 1985, that was made to the county agricultural 
 11.8   stabilization and conservation service office prior to September 
 11.9   19, 1988, and a ruling and any subsequent appeals or reviews 
 11.10  have determined that drainage of the wetland had been commenced 
 11.11  prior to December 23, 1985; 
 11.12     (5) activities exempted from federal regulation under 
 11.13  United States Code, title 33, section 1344(f); 
 11.14     (6) activities authorized under, and conducted in 
 11.15  accordance with, an applicable general permit issued by the 
 11.16  United States Army Corps of Engineers under section 404 of the 
 11.17  federal Clean Water Act, United States Code, title 33, section 
 11.18  1344, except the nationwide permit in Code of Federal 
 11.19  Regulations, title 33, section 330.5, paragraph (a), clause 
 11.20  (14), limited to when a new road crosses a wetland, and all of 
 11.21  clause (26); 
 11.22     (7) activities in a type 1 wetland on agricultural land, as 
 11.23  defined in United States Fish and Wildlife Circular No. 39 (1971 
 11.24  edition) except for bottomland hardwood type 1 wetlands; 
 11.25     (8) activities in a type 2 wetland that is two acres in 
 11.26  size or less located on agricultural land; 
 11.27     (9) activities in a wetland restored for conservation 
 11.28  purposes under a contract or easement providing the landowner 
 11.29  with the right to drain the restored wetland; 
 11.30     (10) activities in a wetland created solely as a result of: 
 11.31     (i) beaver dam construction; 
 11.32     (ii) blockage of culverts through roadways maintained by a 
 11.33  public or private entity; 
 11.34     (iii) actions by public entities that were taken for a 
 11.35  purpose other than creating the wetland; or 
 11.36     (iv) any combination of (i) to (iii); 
 12.1      (11) placement, maintenance, repair, enhancement, or 
 12.2   replacement of utility or utility-type service, including the 
 12.3   transmission, distribution, or furnishing, at wholesale or 
 12.4   retail, of natural or manufactured gas, electricity, telephone, 
 12.5   or radio service or communications if: 
 12.6      (i) the impacts of the proposed project on the hydrologic 
 12.7   and biological characteristics of the wetland have been avoided 
 12.8   and minimized to the extent possible; and 
 12.9      (ii) the proposed project significantly modifies or alters 
 12.10  less than one-half acre of wetlands; 
 12.11     (12) activities associated with routine maintenance of 
 12.12  utility and pipeline rights-of-way, provided the activities do 
 12.13  not result in additional intrusion into the wetland; 
 12.14     (13) alteration of a wetland associated with the operation, 
 12.15  maintenance, or repair of an interstate pipeline; 
 12.16     (14) temporarily crossing or entering a wetland to perform 
 12.17  silvicultural activities, including timber harvest as part of a 
 12.18  forest management activity, so long as the activity limits the 
 12.19  impact on the hydrologic and biologic characteristics of the 
 12.20  wetland; the activities do not result in the construction of 
 12.21  dikes, drainage ditches, tile lines, or buildings; and the 
 12.22  timber harvesting and other silvicultural practices do not 
 12.23  result in the drainage of the wetland or public waters; 
 12.24     (15) permanent access for forest roads across wetlands so 
 12.25  long as the activity limits the impact on the hydrologic and 
 12.26  biologic characteristics of the wetland; the construction 
 12.27  activities do not result in the access becoming a dike, drainage 
 12.28  ditch or tile line; with filling avoided wherever possible; and 
 12.29  there is no drainage of the wetland or public waters; 
 12.30     (16) draining or filling up to one-half acre of wetlands 
 12.31  for the repair, rehabilitation, or replacement of a previously 
 12.32  authorized, currently serviceable existing public road, provided 
 12.33  that minor deviations in the public road's configuration or 
 12.34  filled area, including those due to changes in materials, 
 12.35  construction techniques, or current construction codes or safety 
 12.36  standards, that are necessary to make repairs, rehabilitation, 
 13.1   or replacement are allowed if the wetland draining or filling 
 13.2   resulting from the repair, rehabilitation, or replacement is 
 13.3   minimized; 
 13.4      (17) emergency repair and normal maintenance and repair of 
 13.5   existing public works, provided the activity does not result in 
 13.6   additional intrusion of the public works into the wetland and do 
 13.7   not result in the draining or filling, wholly or partially, of a 
 13.8   wetland; 
 13.9      (18) normal maintenance and minor repair of structures 
 13.10  causing no additional intrusion of an existing structure into 
 13.11  the wetland, and maintenance and repair of private crossings 
 13.12  that do not result in the draining or filling, wholly or 
 13.13  partially, of a wetland; 
 13.14     (19) duck blinds; 
 13.15     (20) aquaculture activities, including pond excavation and 
 13.16  construction and maintenance of associated access roads and 
 13.17  dikes authorized under, and conducted in accordance with, a 
 13.18  permit issued by the United States Army Corps of Engineers under 
 13.19  section 404 of the federal Clean Water Act, United States Code, 
 13.20  title 33, section 1344, but not including construction or 
 13.21  expansion of buildings; 
 13.22     (21) wild rice production activities, including necessary 
 13.23  diking and other activities authorized under a permit issued by 
 13.24  the United States Army Corps of Engineers under section 404 of 
 13.25  the federal Clean Water Act, United States Code, title 33, 
 13.26  section 1344; 
 13.27     (22) normal agricultural practices to control pests or 
 13.28  weeds, defined by rule as either noxious or secondary weeds, in 
 13.29  accordance with applicable requirements under state and federal 
 13.30  law, including established best management practices; 
 13.31     (23) activities in a wetland that is on agricultural land 
 13.32  annually enrolled in the federal Food, Agricultural, 
 13.33  Conservation, and Trade Act of 1990, United States Code, title 
 13.34  16, section 3821, subsection (a), clauses (1) to (3), as 
 13.35  amended, and is subject to sections 1421 to 1424 of the federal 
 13.36  act in effect on January 1, 1991, except that land enrolled in a 
 14.1   federal farm program is eligible for easement participation for 
 14.2   those acres not already compensated under a federal program; 
 14.3      (24) development projects and ditch improvement projects in 
 14.4   the state that have received preliminary or final plat approval, 
 14.5   or infrastructure that has been installed, or having local site 
 14.6   plan approval, conditional use permits, or similar official 
 14.7   approval by a governing body or government agency, within five 
 14.8   years before July 1, 1991.  In the seven-county metropolitan 
 14.9   area and in cities of the first and second class, plat approval 
 14.10  must be preliminary as approved by the appropriate governing 
 14.11  body; and 
 14.12     (25) activities that result in the draining or filling of 
 14.13  less than 400 square feet of wetlands. 
 14.14     (b) For the purpose of paragraph (a), clause (16), 
 14.15  "currently serviceable" means usable as is or with some 
 14.16  maintenance, but not so degraded as to essentially require 
 14.17  reconstruction.  Paragraph (a), clause (16), authorizes the 
 14.18  repair, rehabilitation, or replacement of public roads destroyed 
 14.19  by storms, floods, fire, or other discrete events, provided the 
 14.20  repair, rehabilitation, or replacement is commenced or under 
 14.21  contract to commence within two years of the occurrence of the 
 14.22  destruction or damage. 
 14.23     (c) A person conducting an activity in a wetland under an 
 14.24  exemption in paragraph (a) shall ensure that: 
 14.25     (1) appropriate erosion control measures are taken to 
 14.26  prevent sedimentation of the water; 
 14.27     (2) the activity does not block fish passage in a 
 14.28  watercourse; and 
 14.29     (3) the activity is conducted in compliance with all other 
 14.30  applicable federal, state, and local requirements, including 
 14.31  best management practices and water resource protection 
 14.32  requirements established under chapter 103H. 
 14.33     Subdivision 1.  [AGRICULTURAL ACTIVITIES.] A replacement 
 14.34  plan for wetlands is not required for: 
 14.35     (1) activities in a wetland that was planted with annually 
 14.36  seeded crops, was in a crop rotation seeding of pasture grasses 
 15.1   or legumes, or was required to be set aside to receive price 
 15.2   support or other payments under United States Code, title 7, 
 15.3   sections 1421 to 1469, in six of the last ten years prior to 
 15.4   January 1, 1991; 
 15.5      (2) activities in a wetland that is or has been enrolled in 
 15.6   the federal conservation reserve program under United States 
 15.7   Code, title 16, section 3831, that: 
 15.8      (i) was planted with annually seeded crops, was in a crop 
 15.9   rotation seeding, or was required to be set aside to receive 
 15.10  price support or payment under United States Code, title 7, 
 15.11  sections 1421 to 1469, in six of the last ten years prior to 
 15.12  being enrolled in the program; and 
 15.13     (ii) has not been restored with assistance from a public or 
 15.14  private wetland restoration program; 
 15.15     (3) activities in a wetland that has received a commenced 
 15.16  drainage determination provided for by the federal Food Security 
 15.17  Act of 1985, that was made to the county agricultural 
 15.18  stabilization and conservation service office prior to September 
 15.19  19, 1988, and a ruling and any subsequent appeals or reviews 
 15.20  have determined that drainage of the wetland had been commenced 
 15.21  prior to December 23, 1985; 
 15.22     (4) activities in a type 1 wetland on agricultural land, as 
 15.23  defined in United States Fish and Wildlife Circular No. 39 (1971 
 15.24  edition), except for bottomland hardwood type 1 wetlands, and 
 15.25  activities in a type 2 wetland less than two acres in size on 
 15.26  agricultural land; 
 15.27     (5) aquaculture activities, including pond excavation and 
 15.28  construction and maintenance of associated access roads and 
 15.29  dikes authorized under, and conducted in accordance with, a 
 15.30  permit issued by the United States Army Corps of Engineers under 
 15.31  section 404 of the federal Clean Water Act, United States Code, 
 15.32  title 33, section 1344, but not including construction or 
 15.33  expansion of buildings; 
 15.34     (6) wild rice production activities, including necessary 
 15.35  diking and other activities authorized under a permit issued by 
 15.36  the United States Army Corps of Engineers under section 404 of 
 16.1   the federal Clean Water Act, United States Code, title 33, 
 16.2   section 1344; 
 16.3      (7) normal agricultural practices to control pests or 
 16.4   weeds, defined by rule as either noxious or secondary weeds, in 
 16.5   accordance with applicable requirements under state and federal 
 16.6   law, including established best management practices; and 
 16.7      (8) agricultural activities in a wetland that is on 
 16.8   agricultural land annually enrolled in the federal Food, 
 16.9   Agricultural, Conservation, and Trade Act of 1990, United States 
 16.10  Code, title 16, section 3821, subsection (a), clauses (1) to 
 16.11  (3), as amended, and is subject to sections 1421 to 1424 of the 
 16.12  federal act in effect on January 1, 1991, except that land 
 16.13  enrolled in the federal farm program is eligible for easement 
 16.14  participation for those acres not already compensated under a 
 16.15  federal program. 
 16.16     Subd. 2.  [DRAINAGE.] A replacement plan for wetlands is 
 16.17  not required for activities necessary to repair and maintain 
 16.18  existing public or private drainage systems as long as wetlands 
 16.19  that have been in existence for more than 20 years are not 
 16.20  drained. 
 16.21     Subd. 3.  [FEDERAL APPROVALS.] A replacement plan is not 
 16.22  required for: 
 16.23     (1) activities exempted from federal regulation under 
 16.24  United States Code, title 33, section 1344(f), as in effect on 
 16.25  January 1, 1991; or 
 16.26     (2) activities authorized under, and conducted in 
 16.27  accordance with, an applicable general permit issued by the 
 16.28  United States Army Corps of Engineers under section 404 of the 
 16.29  federal Clean Water Act, United States Code, title 33, section 
 16.30  1344, except the nationwide permit in Code of Federal 
 16.31  Regulations, title 33, section 330.5, paragraph (a), clause 
 16.32  (14), limited to when a new road crosses a wetland, and all of 
 16.33  clause (26), as in effect on January 1, 1991. 
 16.34     Subd. 4.  [WETLAND RESTORATIONS.] A replacement plan for 
 16.35  wetlands is not required for activities in a wetland restored 
 16.36  for conservation purposes under a contract or easement providing 
 17.1   the landowner with the right to drain the restored wetland. 
 17.2      Subd. 5.  [INCIDENTAL WETLANDS.] A replacement plan for 
 17.3   wetlands is not required for activities in a wetland created 
 17.4   solely as a result of: 
 17.5      (1) beaver dam construction; 
 17.6      (2) blockage of culverts through roadways maintained by a 
 17.7   public or private entity; 
 17.8      (3) actions by public or private entities that were taken 
 17.9   for a purpose other than creating the wetland; or 
 17.10     (4) any combination of clauses (1) to (3). 
 17.11     Subd. 6.  [UTILITIES; PUBLIC WORKS.] A replacement plan for 
 17.12  wetlands is not required for: 
 17.13     (1) placement, maintenance, repair, enhancement, or 
 17.14  replacement of utility or utility-type service, including the 
 17.15  transmission, distribution, or furnishing, at wholesale or 
 17.16  retail, of natural or manufactured gas, electricity, telephone, 
 17.17  or radio service or communications if: 
 17.18     (i) the impacts of the proposed project on the hydrologic 
 17.19  and biological characteristics of the wetland have been avoided 
 17.20  and minimized to the extent possible; and 
 17.21     (ii) the proposed project significantly modifies or alters 
 17.22  less than one-half acre of wetlands; 
 17.23     (2) activities associated with routine maintenance of 
 17.24  utility and pipeline rights-of-way, provided the activities do 
 17.25  not result in additional intrusion into the wetland; 
 17.26     (3) alteration of a wetland associated with the operation, 
 17.27  maintenance, or repair of an interstate pipeline, or repair of 
 17.28  an interstate pipeline within all existing or acquired 
 17.29  interstate pipeline rights-of-way; 
 17.30     (4) emergency repair and normal maintenance and repair of 
 17.31  existing public works, provided the activity does not result in 
 17.32  additional intrusion of the public works into the wetland and 
 17.33  does not result in the draining or filling, wholly or partially, 
 17.34  of a wetland; 
 17.35     (5) normal maintenance and minor repair of structures 
 17.36  causing no additional intrusion of an existing structure into 
 18.1   the wetland, and maintenance and repair of private crossings 
 18.2   that do not result in the draining or filling, wholly or 
 18.3   partially, of a wetland; and 
 18.4      (6) repair and updating of existing individual sewage 
 18.5   treatment systems as necessary to comply with local, state, and 
 18.6   federal regulations. 
 18.7      Subd. 7.  [FORESTRY.] A replacement plan for wetlands is 
 18.8   not required for: 
 18.9      (1) temporarily crossing or entering a wetland to perform 
 18.10  silvicultural activities, including timber harvest as part of a 
 18.11  forest management activity, so long as the activity limits the 
 18.12  impact on the hydrologic and biologic characteristics of the 
 18.13  wetland; the activities do not result in the construction of 
 18.14  dikes, drainage ditches, tile lines, or buildings; and the 
 18.15  timber harvesting and other silvicultural practices do not 
 18.16  result in the drainage of the wetland or public waters; or 
 18.17     (2) permanent access for forest roads across wetlands so 
 18.18  long as the activity limits the impact on the hydrologic and 
 18.19  biologic characteristics of the wetland; the construction 
 18.20  activities do not result in the access becoming a dike, drainage 
 18.21  ditch, or tile line; with filling avoided wherever possible; and 
 18.22  there is no drainage of the wetland or public waters. 
 18.23     Subd. 8.  [APPROVED DEVELOPMENT.] A replacement plan for 
 18.24  wetlands is not required for development projects and ditch 
 18.25  improvement projects in the state that have received preliminary 
 18.26  or final plat approval, or infrastructure that has been 
 18.27  installed, or having local site plan approval, conditional use 
 18.28  permits, or similar official approval by a governing body or 
 18.29  government agency, within five years before July 1, 1991.  In 
 18.30  the seven-county metropolitan area and in cities of the first 
 18.31  and second class, plat approval must be preliminary as approved 
 18.32  by the appropriate governing body. 
 18.33     Subd. 9.  [DE MINIMIS.] (a) A replacement plan is not 
 18.34  required for activities that result in the draining or filling 
 18.35  of not more than the following wetland areas: 
 18.36     (1) in shoreland wetland protection zones statewide, and in 
 19.1   counties or watersheds with less than 50 percent of their 
 19.2   presettlement wetlands remaining, and in wetlands types 3, 4, 
 19.3   and 5 statewide, 400 square feet; and 
 19.4      (2) in wetlands types 1, 2, 6, 7, and 8 outside of 
 19.5   shoreland protection zones: 
 19.6      (i) in counties or watersheds with 50 to 80 percent of 
 19.7   their presettlement wetlands remaining, 1,000 square feet; and 
 19.8      (ii) in counties or watersheds with more than 80 percent of 
 19.9   their presettlement wetlands remaining, 7,500 square feet. 
 19.10     (b) The cumulative impact of draining or filling of a 
 19.11  wetland over time, after July 1, 1992, by all persons, may not 
 19.12  exceed five percent of the wetland's area. 
 19.13     (c) Where the ownership of the bed of a wetland is divided 
 19.14  among two or more owners, each owner is entitled to a pro rata 
 19.15  share of the applicable de minimis amount. 
 19.16     Subd. 10.  [WILDLIFE HABITAT.] A replacement plan for 
 19.17  wetlands is not required for: 
 19.18     (1) deposition of spoil resulting from excavating within a 
 19.19  wetland for wildlife habitat purposes, if: 
 19.20     (i) the area of deposition does not exceed five percent of 
 19.21  the wetland area or one-half acre, whichever is less, and the 
 19.22  spoil is stabilized and permanently seeded to prevent erosion; 
 19.23     (ii) the project does not have an adverse impact on any 
 19.24  species designated as threatened or endangered under state or 
 19.25  federal law; and 
 19.26     (iii) the project will provide wildlife habitat improvement 
 19.27  as certified by the Soil and Water Conservation District; or 
 19.28     (2) duck blinds. 
 19.29     Subd. 11.  [EXEMPTION CONDITIONS.] (a) A person conducting 
 19.30  an activity under an exemption in subdivisions 1 to 11 shall 
 19.31  ensure that: 
 19.32     (1) appropriate erosion control measures are taken to 
 19.33  prevent sedimentation of the water; 
 19.34     (2) the activity does not block fish passage in a 
 19.35  watercourse; and 
 19.36     (3) the activity is conducted in compliance with all other 
 20.1   applicable federal, state, and local requirements, including 
 20.2   best management practices and water resources protection 
 20.3   requirements established under chapter 103H. 
 20.4      (b) An activity is exempt if it qualifies for any one of 
 20.5   the exemptions, even though it may be indicated as not exempt 
 20.6   under another exemption.  Only one exemption may apply per 
 20.7   project. 
 20.8      (c) A person proposing to conduct an exempt activity shall 
 20.9   consult the local governmental unit for advice on minimizing 
 20.10  wetland impacts. 
 20.11     Sec. 17.  Minnesota Statutes 1994, section 103G.2242, 
 20.12  subdivision 1, is amended to read: 
 20.13     Subdivision 1.  [RULES.] (a) By July 1, 1993, The board, in 
 20.14  consultation with the commissioner, shall adopt rules governing 
 20.15  the approval of wetland value replacement plans under this 
 20.16  section.  These rules must address the criteria, procedure, 
 20.17  timing, and location of acceptable replacement of wetland 
 20.18  values; may address the state establishment and administration 
 20.19  of a wetland banking program for public and private projects, 
 20.20  which may include provisions allowing monetary payment to the 
 20.21  wetland banking program for alteration of wetlands on 
 20.22  agricultural land; the methodology to be used in identifying and 
 20.23  evaluating wetland functions; the administrative, monitoring, 
 20.24  and enforcement procedures to be used; and a procedure for the 
 20.25  review and appeal of decisions under this section.  In the case 
 20.26  of peatlands, the replacement plan rules must consider the 
 20.27  impact on carbon balance described in the report required by 
 20.28  Laws 1990, chapter 587, and include the planting of trees or 
 20.29  shrubs. 
 20.30     (b) After the adoption of the rules, a replacement plan 
 20.31  must be approved by a resolution of the governing body of the 
 20.32  local government unit, consistent with the provisions of the 
 20.33  rules or a comprehensive wetland protection and management plan 
 20.34  approved under paragraphs (d) to (g). 
 20.35     (c) Unless and until a local government unit has adopted an 
 20.36  approved comprehensive wetland protection and management plan 
 21.1   under paragraphs (d) to (g), the local government unit shall 
 21.2   administer sections 103G.222 to 103G.237, and the board's 
 21.3   rules.  If a local government unit violates this paragraph, the 
 21.4   board shall initiate an action seeking a writ of mandamus 
 21.5   requiring the local government unit to comply.  The local 
 21.6   government unit shall pay the board's costs, disbursements, and 
 21.7   reasonable attorney fees in the action.  For local government 
 21.8   units that are out of compliance with this paragraph as of July 
 21.9   1, 1996, the board shall initiate the mandamus action on that 
 21.10  date.  For local government units that violate the requirements 
 21.11  of this paragraph after July 1, 1996, the board shall notify the 
 21.12  local government unit of the actions necessary to achieve 
 21.13  compliance and shall initiate the mandamus action one year after 
 21.14  the notification if the local government unit is still out of 
 21.15  compliance at that time. 
 21.16     (c) (d) The board may shall approve as an alternative to 
 21.17  the rules adopted under this subdivision a comprehensive wetland 
 21.18  protection and management plan developed by a local government 
 21.19  unit in accordance with paragraph (f), provided that the plan: 
 21.20     (1) incorporates sections 103A.201, subdivision 2, and; 
 21.21  103G.222, paragraphs (a) and (b); and 103G.223; 
 21.22     (2) is adopted as part of an approved local water plan 
 21.23  under sections 103B.231 and 103B.311; and 
 21.24     (3) is adopted as part of the local government's official 
 21.25  controls. 
 21.26     (d) If the local government unit fails to apply the rules, 
 21.27  or fails to implement a local program under paragraph (c), the 
 21.28  government unit is subject to penalty as determined by the board.
 21.29  includes an inventory of the wetlands in each watershed in the 
 21.30  area covered by the plan; 
 21.31     (3) provides for classification of wetlands according to 
 21.32  their functions and values using a methodology established or 
 21.33  approved by the board under section 103B.3355; and 
 21.34     (4) complies with the conditions in paragraph (e). 
 21.35     (e) A local comprehensive wetland protection and management 
 21.36  plan must ensure that: 
 22.1      (1) in watersheds that have less than 50 percent of their 
 22.2   presettlement wetlands remaining, overall for every acre of 
 22.3   wetland drained or filled, two acres of replacement wetlands are 
 22.4   provided, with no net loss of wetland functions and values; 
 22.5      (2) in watersheds that have 50 to 80 percent of their 
 22.6   presettlement wetlands remaining, overall there is no net loss 
 22.7   of wetland area or of wetland functions and values; 
 22.8      (3) in watersheds with more than 80 percent of their 
 22.9   presettlement wetlands remaining, the plan provides that within 
 22.10  shoreland wetland protection zones and cities there shall be no 
 22.11  net loss of wetland area or of functions and values and that 
 22.12  elsewhere in the watershed there shall be no net loss of wetland 
 22.13  functions and values from projects draining or filling one acre 
 22.14  or more of wetlands; and 
 22.15     (4) replacement occurs within the affected watershed unless 
 22.16  80 percent watershed. 
 22.17     (f) The procedure for the development and adoption of a 
 22.18  local comprehensive wetland protection and management plan is as 
 22.19  follows: 
 22.20     (1) the plan must be adopted as part of an approved local 
 22.21  water plan under sections 103B.231 and 103B.311, using the local 
 22.22  water plan procedures where not in conflict with clause (2); and 
 22.23     (2) the local government unit intending to adopt a 
 22.24  comprehensive wetland protection and management program shall, 
 22.25  at the beginning of the process: 
 22.26     (i) notify the board, the commissioner of natural 
 22.27  resources, and the pollution control agency; and 
 22.28     (ii) invite other local government units, soil and water 
 22.29  conservation districts, watershed districts, and the public to 
 22.30  participate actively in the development of the plan. 
 22.31  The local government unit shall create and support regular 
 22.32  meetings of a citizen advisory committee.  The three state 
 22.33  agencies notified under item (i) shall participate in the 
 22.34  development of the plan; otherwise, they have no standing in 
 22.35  administrative or court proceedings to challenge the plan. 
 22.36     (g) The board shall advise the local government unit of 
 23.1   those elements of an approved plan that are more restrictive 
 23.2   than state law and rules for purposes of section 103G.237, 
 23.3   subdivision 5. 
 23.4      Sec. 18.  Minnesota Statutes 1994, section 103G.2242, 
 23.5   subdivision 2, is amended to read: 
 23.6      Subd. 2.  [EVALUATION.] Questions concerning the public 
 23.7   value, location, size, or type of a wetland shall be submitted 
 23.8   to and determined by a technical evaluation panel after an 
 23.9   on-site inspection.  The technical evaluation panel shall be 
 23.10  composed of a technical professional employee of the board, a 
 23.11  technical professional employee of the local soil and water 
 23.12  conservation district or districts, and a technical professional 
 23.13  with expertise in water resources management appointed by the 
 23.14  local government unit.  The panel shall use the "Federal Manual 
 23.15  for Identifying and Delineating Jurisdictional Wetlands" 
 23.16  (January 1989) "U.S. Army Corps of Engineers Wetland Delineation 
 23.17  Manual":  (January 1987), and in making public value 
 23.18  determinations shall use methodologies established or approved 
 23.19  under section 103B.3355.  The panel shall provide the wetland 
 23.20  determination to the local government unit that must approve a 
 23.21  replacement plan under this section, and may recommend approval 
 23.22  or denial of the plan.  The authority must consider and include 
 23.23  the decision of the technical evaluation panel in their approval 
 23.24  or denial of a plan. 
 23.25     Sec. 19.  Minnesota Statutes 1994, section 103G.2242, 
 23.26  subdivision 4, is amended to read: 
 23.27     Subd. 4.  [DECISION.] Upon receiving and considering all 
 23.28  required data, the local government unit approving a replacement 
 23.29  plan must act on all applications for plan approval within 60 
 23.30  days.  A local government unit may extend the 60-day period for 
 23.31  an additional 30 days by notifying the applicant in writing of 
 23.32  the delay, the reasons for the delay, and the expected date of 
 23.33  final action on the application.  If the local government unit 
 23.34  fails to act on the application within the 60-day period or any 
 23.35  extension period, the local government unit shall pay the 
 23.36  applicant $100 per day for each day thereafter that it fails to 
 24.1   make a decision. 
 24.2      Sec. 20.  Minnesota Statutes 1994, section 103G.2242, 
 24.3   subdivision 6, is amended to read: 
 24.4      Subd. 6.  [NOTICE OF APPLICATION.] (a) Except as provided 
 24.5   in paragraph (b), within ten days of receiving an application 
 24.6   for approval of a replacement plan under this section, a copy 
 24.7   summary of the application must be submitted to the board for 
 24.8   publication in the Environmental Quality Board Monitor and 
 24.9   separate copies of the complete application mailed to the 
 24.10  members of the technical evaluation panel, individual members of 
 24.11  the public who request a copy, the board of supervisors of the 
 24.12  soil and water conservation district, the managers of the 
 24.13  watershed district, the board of county commissioners if one 
 24.14  exists, and the commissioner of agriculture, and the mayors of 
 24.15  the cities within the area watershed.  At the same time, the 
 24.16  local government unit must give general notice to the public in 
 24.17  a general circulation newspaper within the area affected natural 
 24.18  resources. 
 24.19     (b) Within ten days of receiving an application for 
 24.20  approval of a replacement plan under this section for an 
 24.21  activity affecting less than 10,000 square feet of wetland, a 
 24.22  summary of the application must be submitted for publication in 
 24.23  the Environmental Quality Board Monitor and separate copies 
 24.24  mailed to the members of the technical evaluation panel, 
 24.25  individual members of the public who request a copy, and the 
 24.26  managers of the watershed district, if applicable.  At the same 
 24.27  time, the local government unit must give general notice to the 
 24.28  public in a general circulation newspaper within the area 
 24.29  affected commissioner of natural resources. 
 24.30     (c) For the purpose of this subdivision, "application" 
 24.31  includes a revised application for replacement plan approval and 
 24.32  an application for a revision to an approved replacement plan if:
 24.33     (1) the wetland area to be drained or filled under the 
 24.34  revised replacement plan is at least ten percent larger than the 
 24.35  area to be drained or filled under the original replacement 
 24.36  plan; or 
 25.1      (2) the wetland area to be drained or filled under the 
 25.2   revised replacement plan is located more than 500 feet from the 
 25.3   area to be drained or filled under the original replacement plan.
 25.4      Sec. 21.  Minnesota Statutes 1994, section 103G.2242, 
 25.5   subdivision 7, is amended to read: 
 25.6      Subd. 7.  [NOTICE OF DECISION.] (a) Except as provided in 
 25.7   paragraph (b), at least 30 Within ten days prior to the 
 25.8   effective date of the approval or denial of a replacement plan 
 25.9   under this section, a copy summary of the approval or denial 
 25.10  must be submitted for publication in the Environmental Quality 
 25.11  Board Monitor and separate copies mailed to members of the 
 25.12  technical evaluation panel, the applicant, the board, individual 
 25.13  members of the public who request a copy, the board of 
 25.14  supervisors of the soil and water conservation district, the 
 25.15  managers of the watershed district, the board of county 
 25.16  commissioners, if one exists, and the commissioner of 
 25.17  agriculture, and the mayors of the cities within the area 
 25.18  watershed natural resources.  Notice in the Environmental 
 25.19  Quality Board Monitor is not required for projects impacting 
 25.20  less than 10,000 square feet of wetlands. 
 25.21     (b) Within ten days of the decision approving or denying a 
 25.22  replacement plan under this section for an activity affecting 
 25.23  less than 10,000 square feet of wetland, a summary of the 
 25.24  approval or denial must be submitted for publication in the 
 25.25  Environmental Quality Board Monitor and separate copies mailed 
 25.26  to the applicant, individual members of the public who request a 
 25.27  copy, the members of the technical evaluation panel, and the 
 25.28  managers of the watershed district, if applicable.  At the same 
 25.29  time, the local government unit must give general notice to the 
 25.30  public in a general circulation newspaper within the area 
 25.31  affected. 
 25.32     Sec. 22.  Minnesota Statutes 1994, section 103G.2242, 
 25.33  subdivision 9, is amended to read: 
 25.34     Subd. 9.  [APPEAL.] Appeal of the a replacement plan, 
 25.35  exemption, or no-loss decision may be obtained by mailing 
 25.36  a notice of appeal petition and payment of a filing fee of $200 
 26.1   to the board within 30 15 days after the postmarked date of the 
 26.2   mailing specified in subdivision 7.  If appeal is not sought 
 26.3   within 30 days, the decision becomes final.  Appeal may be made 
 26.4   by the wetland owner, by any of those to whom notice is required 
 26.5   to be mailed under subdivision 7, or by 100 residents of the 
 26.6   county in which a majority of the wetland is located.  Within 30 
 26.7   days after receiving a petition, the board shall decide whether 
 26.8   to grant the petition and hear the appeal.  The board shall 
 26.9   grant the petition unless the board finds that the appeal is 
 26.10  meritless, trivial, or brought solely for the purposes of delay, 
 26.11  or that the petitioner has not exhausted all local 
 26.12  administrative remedies required by the local government unit, 
 26.13  or that the petitioner has not posted a bond if required by the 
 26.14  local government unit.  In determining whether to grant the 
 26.15  appeal, the board shall also consider the size of the wetland, 
 26.16  other factors in controversy, other patterns of similar acts by 
 26.17  the local government unit or petitioner, and the consequences of 
 26.18  the delay resulting from the appeal.  If the appeal is accepted, 
 26.19  the filing fee will be retained by the board to defray 
 26.20  administrative costs.  If the appeal is denied, the filing fee 
 26.21  must be returned to the petitioner.  All appeals must be heard 
 26.22  by the committee for dispute resolution of the board, and a 
 26.23  decision made within 60 days of the appeal.  The A decision 
 26.24  whether to grant a petition for appeal and a decision on the 
 26.25  merits of an appeal must be served by mail on the parties to the 
 26.26  appeal, and is not subject to the provisions of chapter 14.  The 
 26.27  decision must be considered the decision of an agency in a 
 26.28  contested case for purposes of judicial review under sections 
 26.29  14.63 to 14.69. 
 26.30     Sec. 23.  Minnesota Statutes 1994, section 103G.2242, 
 26.31  subdivision 12, is amended to read: 
 26.32     Subd. 12.  [REPLACEMENT CREDITS.] (a) No public or private 
 26.33  wetland restoration, enhancement, or construction may be allowed 
 26.34  for replacement unless specifically designated for replacement 
 26.35  and paid for by the individual or organization performing the 
 26.36  wetland restoration, enhancement, or construction, and is 
 27.1   completed prior to any draining or filling of the wetland. 
 27.2      This subdivision Paragraph (a) does not apply to a wetland 
 27.3   whose owner has paid back with interest the individual or 
 27.4   organization restoring, enhancing, or constructing the wetland. 
 27.5      (b) Notwithstanding section 103G.222, paragraph (i), the 
 27.6   following actions are eligible for replacement credit as 
 27.7   determined by the local government unit, including enrollment in 
 27.8   a statewide wetlands bank: 
 27.9      (1) reestablishment of permanent vegetative cover on a 
 27.10  wetland that was planted with annually seeded crops, was in a 
 27.11  crop rotation seeding of pasture grass or legumes, or was 
 27.12  required to be set aside to receive price support or other 
 27.13  payments under United States Code, title 7, sections 1421 to 
 27.14  1469, in six of the last ten years prior to January 1, 1991, 
 27.15  provided that replacement credit may not exceed 50 percent of 
 27.16  the total wetland area vegetatively restored; 
 27.17     (2) buffer areas of permanent vegetative cover established 
 27.18  on upland adjacent to replacement wetlands, provided that the 
 27.19  upland buffer must be established at the time of wetland 
 27.20  replacement and replacement credit for such buffers may not 
 27.21  exceed 50 percent of the replaced wetland area and may only be 
 27.22  used for replacement above a one-to-one ratio; 
 27.23     (3) up to 50 percent of a restored for conservation 
 27.24  purposes under a terminated easement or contract, provided that 
 27.25  adjacent upland buffer areas reestablished to permanent 
 27.26  vegetative cover are eligible for replacement credit above 
 27.27  one-to-one ratio in an amount not to exceed 25 percent of the 
 27.28  restored wetland area; and 
 27.29     (4) construction of water quality treatment ponds to 
 27.30  pretreat storm water runoff prior to discharge to wetlands, 
 27.31  public waters, or other water bodies, provided that: 
 27.32     (i) the water quality treatment ponds must be associated 
 27.33  with an ongoing or proposed project that will impact a wetland; 
 27.34  and 
 27.35     (ii) replacement credit for the treatment ponds may not 
 27.36  exceed 50 percent of the treatment pond area and may only be 
 28.1   used for replacement above a one-to-one ratio. 
 28.2      Sec. 24.  Minnesota Statutes 1994, section 103G.237, 
 28.3   subdivision 4, is amended to read: 
 28.4      Subd. 4.  [COMPENSATION.] (a) The board shall award 
 28.5   compensation in an amount equal to the greater of: 
 28.6      (1) 50 percent of the value of the wetland, calculated by 
 28.7   multiplying the acreage of the wetland by the greater of: 
 28.8      (1) (i) the average equalized estimated market value of 
 28.9   agricultural property in the township as established by the 
 28.10  commissioner of revenue at the time application for compensation 
 28.11  is made; or 
 28.12     (2) (ii) the assessed value per acre of the parcel 
 28.13  containing the wetland, based on the assessed value of the 
 28.14  parcel as stated on the most recent tax statement; or 
 28.15     (2) $200 per acre of wetland subject to the replacement 
 28.16  plan, increased or decreased by the percentage change of the 
 28.17  assessed valuation of land in the township where the wetland is 
 28.18  located from the 1995 valuation. 
 28.19     (b) A person who receives compensation under paragraph (a) 
 28.20  shall convey to the board a permanent conservation easement as 
 28.21  described in section 103F.515, subdivision 4.  An easement 
 28.22  conveyed under this paragraph is subject to correction and 
 28.23  enforcement under section 103F.515, subdivisions 8 and 9. 
 28.24     Sec. 25.  Minnesota Statutes 1994, section 103G.237, is 
 28.25  amended by adding a subdivision to read: 
 28.26     Subd. 5.  [COMPENSATION CLAIMS AGAINST LOCAL GOVERNMENT 
 28.27  UNITS.] (a) At the request of a local government unit against 
 28.28  which a compensation action is brought based at least in part on 
 28.29  the local government unit's application of section 103G.222, 
 28.30  103G.2241, 103G.2242, 103G.237, or 103G.2372, or rules adopted 
 28.31  by the board to implement these sections, the state, through the 
 28.32  attorney general, shall intervene in the action on behalf of the 
 28.33  local government unit and shall thereafter be considered a 
 28.34  defendant in the action.  A local government unit making a 
 28.35  request under this paragraph shall provide the attorney general 
 28.36  with a copy of the complaint as soon as possible after being 
 29.1   served.  If requested by the attorney general, the court shall 
 29.2   grant additional time to file an answer equal to the time 
 29.3   between service of the complaint on the local government unit 
 29.4   and receipt of the complaint by the attorney general. 
 29.5      (b) The state is liable for costs, damages, fees, and 
 29.6   compensation awarded in the action based on the local 
 29.7   government's adoption or implementation of standards that are 
 29.8   required by state law, as determined by the court.  The local 
 29.9   government unit is liable for costs, damages, fees, and 
 29.10  compensation awarded in the action based on local standards that 
 29.11  are more restrictive that the state law and rules. 
 29.12     (c) For purposes of this subdivision, "compensation action" 
 29.13  means an action in which the plaintiff seeks compensation for a 
 29.14  taking of private property under the state or federal 
 29.15  Constitution. 
 29.16     (d) For purposes of this subdivision, "state wetland 
 29.17  conservation law and rules" means this section; sections 
 29.18  103G.222, 103G.2241, 103G.2242, and 103G.2372; and rules adopted 
 29.19  by the board to implement these sections. 
 29.20     Sec. 26.  Minnesota Statutes 1994, section 103G.2373, is 
 29.21  amended to read: 
 29.22     103G.2373 [ANNUAL WETLANDS REPORT.] 
 29.23     By January 1 of each year, local government units shall 
 29.24  report to the board, and by March 1 of each year, the 
 29.25  commissioner of natural resources and the board of water and 
 29.26  soil resources shall jointly report to the committees of the 
 29.27  legislature with jurisdiction over matters relating to 
 29.28  agriculture, the environment, and natural resources on: 
 29.29     (1) the status of implementation of state laws and programs 
 29.30  relating to wetlands; 
 29.31     (2) the quantity, quality, acreage, types, and public value 
 29.32  of wetlands in the state; and 
 29.33     (3) changes in the items in clause (2). 
 29.34     Sec. 27.  Minnesota Statutes 1994, section 115.03, is 
 29.35  amended by adding a subdivision to read: 
 29.36     Subd. 28c.  [SECTION 401 CERTIFICATIONS.] (a) The following 
 30.1   definitions apply to this subdivision: 
 30.2      (1) "section 401 certification" means a water quality 
 30.3   certification required under section 401 of the federal Clean 
 30.4   Water Act, United States Code, title 33, section 1341; and 
 30.5      (2) "nationwide permit" means a nationwide general permit 
 30.6   issued by the United States Army Corps of Engineers and listed 
 30.7   in Code of Federal Regulations, title 40, part 330, appendix A. 
 30.8      (b) The agency is responsible for providing section 401 
 30.9   certifications for nationwide permits. 
 30.10     (c) Before making a final decision on a section 401 
 30.11  certification for regional conditions on a nationwide permit, 
 30.12  the agency shall hold at least one public meeting outside the 
 30.13  seven-county metropolitan area. 
 30.14     (d) In addition to other notice required by law, the agency 
 30.15  shall provide written notice of a meeting at which the agency 
 30.16  will be considering a section 401 certification for regional 
 30.17  conditions on a nationwide permit at least 21 days before the 
 30.18  date of the meeting to the members of the senate and house of 
 30.19  representatives environment and natural resources committees, 
 30.20  the senate agriculture and rural development committee, and the 
 30.21  house of representatives agriculture committee. 
 30.22     Sec. 28.  [STUDY OF WETLAND BANKING ALTERNATIVES; REPORT.] 
 30.23     The commissioner of natural resources shall ensure that the 
 30.24  wetlands conservation planning process currently under way 
 30.25  includes a study of alternative procedures and policies for 
 30.26  improving the current wetland banking system in the state.  The 
 30.27  study must address ecological, hydrological, and economic 
 30.28  aspects of wetland banking.  The study and any resulting 
 30.29  recommendations must be reported to the appropriate policy 
 30.30  committees of the legislature by March 1, 1997. 
 30.31     Sec. 29.  [RULES.] 
 30.32     The board, in consultation with the commissioner of natural 
 30.33  resources, shall adopt rules that amend the rules previously 
 30.34  adopted under Minnesota Statutes, section 103G.2242, subdivision 
 30.35  1. 
 30.36     Sec. 30.  [APPROPRIATIONS.] 
 31.1      (a) $....... is appropriated from the general fund to the 
 31.2   board of water and soil resources for providing assistance to 
 31.3   local governmental units in developing and implementing 
 31.4   comprehensive wetland protection and management plans under 
 31.5   Minnesota Statutes, section 103G.2242, subdivision 1, paragraphs 
 31.6   (c) to (f). 
 31.7      (b) $1,000,000 is appropriated from the general fund to the 
 31.8   board of water and soil resources for completing an inventory of 
 31.9   public drainage by January 1, 1998, and for training of drainage 
 31.10  authority personnel. 
 31.11     Sec. 31.  [BONDS AUTHORIZED; APPROPRIATION.] 
 31.12     Subdivision 1.  [APPROPRIATION.] $4,000,000 is appropriated 
 31.13  from the bond proceeds fund to the board of water and soil 
 31.14  resources for wetland replacement credits to be used to replace 
 31.15  wetlands drained or filled as a result of the repair, 
 31.16  maintenance, or rehabilitation of existing public roads, as 
 31.17  provided in section 103G.222, paragraph (m). 
 31.18     Subd. 2.  [BOND SALE AUTHORIZATION.] To provide the money 
 31.19  appropriated in subdivision 1 from the bond proceeds fund, the 
 31.20  commissioner of finance, on request of the governor, shall sell 
 31.21  and issue bonds of the state in an amount up to $4,000,000 in 
 31.22  the manner, upon the terms, and with the effect prescribed by 
 31.23  Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
 31.24  Minnesota Constitution, article XI, sections 4 to 7. 
 31.25     Sec. 32.  [REPEALER.] 
 31.26     Minnesota Statutes 1994, section 103G.2242, subdivision 13, 
 31.27  is repealed. 
 31.28     Sec. 33.  [EFFECTIVE DATE.] 
 31.29     This act is effective the day following final enactment, 
 31.30  except that section 30, paragraph (b), is effective July 1, 1996.