1.1                          A bill for an act 
  1.2             relating to the environment; establishing a permit for 
  1.3             alternative discharging sewage systems; providing for 
  1.4             the establishment of water quality cooperatives to 
  1.5             furnish water quality treatment and management 
  1.6             services; exempting certain drainage wells from 
  1.7             regulation as dewatering wells; making alternative 
  1.8             sewage treatment systems eligible for state wastewater 
  1.9             treatment financing; appropriating money; amending 
  1.10            Minnesota Statutes 1996, sections 103I.005, 
  1.11            subdivision 4a; 300.111, by adding a subdivision; 
  1.12            308A.101, by adding a subdivision; 308A.201, by adding 
  1.13            a subdivision; 446A.02, subdivision 6; and 446A.072, 
  1.14            subdivision 1; proposing coding for new law in 
  1.15            Minnesota Statutes, chapter 115. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  [FINDINGS.] 
  1.18     The legislature finds that subsurface soil treatment of 
  1.19  sewage by individual sewage treatment systems can be a source of 
  1.20  point or nonpoint pollution in many areas of the state where 
  1.21  improper soil conditions and inadequate financial and economic 
  1.22  resources prevent adequate construction and design of such 
  1.23  systems; that the prevention, reduction, or elimination of water 
  1.24  pollution may be more economically attainable through 
  1.25  installation of alternative discharging sewage systems where 
  1.26  such systems can be adequately managed, maintained, operated, 
  1.27  and monitored as part of a water quality management and 
  1.28  treatment plan to improve the water quality for a given area; 
  1.29  that individuals can provide management, operation, and 
  1.30  monitoring necessary for such systems where such systems are 
  2.1   owned by a water quality cooperative which provides operation, 
  2.2   maintenance, management, and monitoring service as part of a 
  2.3   comprehensive water quality management and treatment plan to 
  2.4   reduce water pollution from point and nonpoint sources for an 
  2.5   area.  The legislature further finds that it is necessary, 
  2.6   reasonable, and appropriate to permit alternative discharging 
  2.7   sewage treatment technologies and water quality cooperatives 
  2.8   when they are regulated by the Minnesota pollution control 
  2.9   agency as part of an overall water quality and management and 
  2.10  treatment plan for a specified geographic area to improve the 
  2.11  water quality for the area. 
  2.12     Sec. 2.  Minnesota Statutes 1996, section 103I.005, 
  2.13  subdivision 4a, is amended to read: 
  2.14     Subd. 4a.  [DEWATERING WELL.] "Dewatering well" means a 
  2.15  nonpotable well used to lower groundwater levels to allow for 
  2.16  construction or use of underground space.  A dewatering well 
  2.17  does not include:  
  2.18     (1) a well or dewatering well 25 feet or less in depth for 
  2.19  temporary dewatering during construction; or 
  2.20     (2) a well used to lower groundwater levels for control or 
  2.21  removal of groundwater contamination; or 
  2.22     (3) a well used to lower groundwater levels by drainage to 
  2.23  prevent contamination of groundwater through the failure or 
  2.24  noncompliance of a sewage treatment system owned by a water 
  2.25  quality cooperative, as defined in section 115.58, subdivision 
  2.26  1, paragraph (d).  
  2.27     Sec. 3.  [115.58] [ALTERNATIVE DISCHARGING SEWAGE SYSTEMS; 
  2.28  GENERAL PERMITS.] 
  2.29     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  2.30  subdivision apply to this section. 
  2.31     (b) "Alternative discharging sewage system" means a sewage 
  2.32  treatment system serving one or more dwellings or other 
  2.33  establishments that uses any treatment and disposal methods 
  2.34  other than subsurface soil treatment and disposal. 
  2.35     (c) "Permit" means a National Pollutant Discharge 
  2.36  Elimination System permit issued to a person for the 
  3.1   installation, ownership, management, or control of alternative 
  3.2   discharging sewage systems whose operations, emissions, 
  3.3   activities, discharges, or facilities are the same or 
  3.4   substantially similar. 
  3.5      (d) "Water quality cooperative" means an incorporated 
  3.6   association of persons organized under chapter 308A to install, 
  3.7   own, manage, and control individual sewage treatment systems or 
  3.8   alternative discharging sewage systems and provide water quality 
  3.9   treatment and management for its members. 
  3.10     (e) "Water quality treatment and management services" means 
  3.11  the monitoring and control of alternative discharging sewage 
  3.12  systems to eliminate or reduce water pollution from point and 
  3.13  nonpoint sources; the management, use, reuse, recycling, or 
  3.14  reclamation of land, water, or wastewater for water supply; 
  3.15  geothermal heating and cooling; fire protection; irrigation; 
  3.16  drainage; open space or green belt preservation; storm water 
  3.17  control; flood control; or other purposes that are part of a 
  3.18  comprehensive plan to reduce, prevent, or eliminate water 
  3.19  pollution. 
  3.20     Subd. 2.  [GENERAL AREAWIDE PERMIT.] The agency must issue 
  3.21  a permit for alternative discharging sewage systems, where the 
  3.22  systems: 
  3.23     (1) meet all applicable standards for treatment of sewage 
  3.24  effluents by the National Sanitary Foundation; 
  3.25     (2) are part of a water quality treatment and management 
  3.26  plan to prevent, eliminate, or reduce water pollution within a 
  3.27  defined geographic area; and 
  3.28     (3) are owned or controlled by the person who is in the 
  3.29  business of providing water quality treatment and management 
  3.30  services to the public. 
  3.31     Subd. 3.  [EXEMPTION FROM INDIVIDUAL SEWAGE TREATMENT 
  3.32  SYSTEM REQUIREMENTS.] A person served by a system permitted 
  3.33  under subdivision 2 is exempt from the requirements of sections 
  3.34  115.55 to 115.57 or any local ordinance adopted to conform with 
  3.35  those sections if the system complies with the applicable 
  3.36  standards for discharges and treatment of sewage effluents. 
  4.1      Sec. 4.  Minnesota Statutes 1996, section 300.111, is 
  4.2   amended by adding a subdivision to read: 
  4.3      Subd. 5.  [WATER QUALITY UTILITIES.] Notwithstanding any 
  4.4   contrary provision in subdivision 1, the term "public utility" 
  4.5   also means a person, corporation, cooperative, or other legal 
  4.6   entity and its lessees, trustees, and receivers who are 
  4.7   operating, maintaining, or controlling equipment or facilities 
  4.8   to provide water quality treatment and management services, as 
  4.9   defined in section 115.58, subdivision 1, paragraph (e).  Public 
  4.10  utility does not include a municipality that owns or operates 
  4.11  equipment or facilities for treating wastewater, furnishing 
  4.12  potable water or water for geothermal heating and cooling, 
  4.13  managing storm water runoff or drainage, or reducing or 
  4.14  eliminating water pollution. 
  4.15     Sec. 5.  Minnesota Statutes 1996, section 308A.101, is 
  4.16  amended by adding a subdivision to read: 
  4.17     Subd. 3.  [WATER QUALITY COOPERATIVE PURPOSE.] A water 
  4.18  quality cooperative may only be formed by a cooperative engaged 
  4.19  in furnishing potable water or water quality treatment and 
  4.20  management services, as defined in section 115.58, subdivision 
  4.21  1, paragraph (e), for the purpose of financing or refinancing 
  4.22  the construction, improvement, expansion, acquisition, 
  4.23  operation, and maintenance of treatment works, sewage systems, 
  4.24  storm sewer facilities, water pipelines, and related facilities 
  4.25  of its members. 
  4.26     Sec. 6.  Minnesota Statutes 1996, section 308A.201, is 
  4.27  amended by adding a subdivision to read: 
  4.28     Subd. 15.  [WATER QUALITY COOPERATIVE CONDEMNATION.] A 
  4.29  water quality cooperative organized in this state may exercise 
  4.30  the power of eminent domain in the manner provided by state law 
  4.31  for the exercise of the power by corporations engaged in the 
  4.32  provision of electric, light, heat, power, or telephone service. 
  4.33     Sec. 7.  Minnesota Statutes 1996, section 446A.02, 
  4.34  subdivision 6, is amended to read: 
  4.35     Subd. 6.  [PROJECT.] "Project" means the acquisition, 
  4.36  construction, improvement, expansion, repair, or rehabilitation 
  5.1   of all or part of any structure, facility, or equipment 
  5.2   necessary for a wastewater treatment system or, water supply 
  5.3   system, or alternative discharging sewage system that is part of 
  5.4   a permit issued under section 115.58, subdivision 1, paragraph 
  5.5   (c). 
  5.6      Sec. 8.  Minnesota Statutes 1996, section 446A.072, 
  5.7   subdivision 1, is amended to read: 
  5.8      Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The authority 
  5.9   will establish a wastewater infrastructure funding program to 
  5.10  provide supplemental assistance to municipalities applying for 
  5.11  funding under the water pollution control revolving loan program 
  5.12  or the United States Department of Agriculture Rural Economic 
  5.13  and Community Development's (USDA/RECD) Water and Waste Disposal 
  5.14  Loans and Grants program for the design and planning, 
  5.15  improvements to, and construction of municipal wastewater 
  5.16  treatment systems or alternative discharging sewage system that 
  5.17  is part of a permit issued under section 115.58, subdivision 1, 
  5.18  paragraph (c), to a municipal water quality cooperative. 
  5.19     Sec. 9.  [APPROPRIATION; POLLUTION CONTROL AGENCY.] 
  5.20     $....... in fiscal year 1998 and $....... in fiscal year 
  5.21  1999 is appropriated from the general fund to the pollution 
  5.22  control agency for a grant to the University of Minnesota to 
  5.23  work with local municipalities and other groups to develop pilot 
  5.24  water quality cooperatives that establish alternative 
  5.25  discharging sewage systems, as defined in Minnesota Statutes, 
  5.26  section 115.58, paragraph (b).  The agency must prepare a work 
  5.27  program designed to ensure that three pilot cooperatives are 
  5.28  established in different regions of the state.  $....... of this 
  5.29  appropriation in each fiscal year is for grants or loans for 
  5.30  capital assistance to develop the pilot water quality 
  5.31  cooperatives.  As a condition of acceptance of this 
  5.32  appropriation, the pollution control agency must submit a work 
  5.33  program and semiannual progress reports as provided in Minnesota 
  5.34  Statutes, section 116P.05, subdivision 2, paragraph (c).