1.1                          A bill for an act 
  1.2             relating to the environment; changing inspection 
  1.3             criteria for individual sewage treatment systems; 
  1.4             authorizing grants for individual sewage treatment 
  1.5             systems; amending Minnesota Statutes 1996, section 
  1.6             116.18, subdivision 3a; Minnesota Statutes 1997 
  1.7             Supplement, section 115.55, subdivision 5a. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.10  115.55, subdivision 5a, is amended to read: 
  1.11     Subd. 5a.  [INSPECTION CRITERIA FOR EXISTING SYSTEMS.] (a) 
  1.12  An inspection of an existing system must evaluate the criteria 
  1.13  in paragraphs (b) to (h). 
  1.14     (b) If the inspector finds one or more of the following 
  1.15  conditions: 
  1.16     (1) sewage discharge to surface water; 
  1.17     (2) sewage discharge to ground surface; 
  1.18     (3) sewage backup; or 
  1.19     (4) a cesspool; or 
  1.20     (5) any other situation with the potential to immediately 
  1.21  and adversely affect or threaten public health or safety, 
  1.22  then the system constitutes an imminent threat to public health 
  1.23  or safety and, if not repaired, must be upgraded, replaced, or 
  1.24  its use discontinued within ten months of receipt of the notice 
  1.25  described in subdivision 5b, or within a shorter period of time 
  1.26  if required by local ordinance. 
  2.1      (c) An existing system that has none of the conditions in 
  2.2   paragraph (b), and has at least two feet of soil separation need 
  2.3   not be upgraded, repaired, replaced, or its use discontinued, 
  2.4   notwithstanding any local ordinance that is more restrictive. 
  2.5      (d) Paragraph (c) does not apply to systems in shoreland 
  2.6   areas regulated under sections 103F.201 to 103F.221, wellhead 
  2.7   protection areas as defined in section 103I.005, or those used 
  2.8   in connection with food, beverage, and lodging establishments 
  2.9   regulated under chapter 157. 
  2.10     (e) If the local unit of government with jurisdiction over 
  2.11  the system has adopted an ordinance containing local standards 
  2.12  pursuant to subdivision 7, the existing system must comply with 
  2.13  the ordinance.  If the system does not comply with the 
  2.14  ordinance, it must be upgraded, replaced, or its use 
  2.15  discontinued according to the ordinance. 
  2.16     (f) If a seepage pit, drywell, cesspool, or leaching pit 
  2.17  exists and the local unit of government with jurisdiction over 
  2.18  the system has not adopted local standards to the contrary, the 
  2.19  system is failing and must be upgraded, replaced, or its use 
  2.20  discontinued within the time required by subdivision 3 or local 
  2.21  ordinance. 
  2.22     (g) If the system fails to provide sufficient groundwater 
  2.23  protection, then the local unit of government or its agent shall 
  2.24  order that the system be upgraded, replaced, or its use 
  2.25  discontinued within the time required by rule or the local 
  2.26  ordinance. 
  2.27     (h) The authority to find a threat to public health under 
  2.28  section 145A.04, subdivision 8, is in addition to the authority 
  2.29  to make a finding under paragraphs (b) to (d). 
  2.30     Sec. 2.  Minnesota Statutes 1996, section 116.18, 
  2.31  subdivision 3a, is amended to read: 
  2.32     Subd. 3a.  [STATE INDEPENDENT GRANTS PROGRAM.] (a) The 
  2.33  public facilities authority must adopt the objective of 
  2.34  maintaining financial assistance to municipalities that the 
  2.35  agency has listed on its annual municipal project list of 
  2.36  approximately 50 percent of the eligible cost of construction 
  3.1   for municipalities with populations over 25,000 and 80 percent 
  3.2   of the eligible cost for municipalities with populations of 
  3.3   25,000 or less.  Financial assistance may be provided by the 
  3.4   public facilities authority through a combination of low 
  3.5   interest loans under the state revolving fund under chapter 
  3.6   446A, independent state grants, and other financial assistance 
  3.7   available to the municipality.  The public facilities authority 
  3.8   may award independent grants for projects certified by the state 
  3.9   pollution control commissioner for 35 percent or, if the 
  3.10  population of the municipality is 25,000 or less, 65 percent of 
  3.11  the eligible cost of construction.  These grants may be awarded 
  3.12  in separate steps for planning and design in addition to actual 
  3.13  construction.  Not more than $2,000,000 of the total amount of 
  3.14  grants awarded under this subdivision in any single fiscal year 
  3.15  may be awarded to a single grantee.  
  3.16     (b) Up to $1,000,000 of the money to be awarded as grants 
  3.17  under this subdivision in any single fiscal year shall be set 
  3.18  aside for municipalities having substantial economic development 
  3.19  projects that cannot come to fruition without municipal 
  3.20  wastewater treatment improvements.  The agency shall forward its 
  3.21  municipal needs list to the authority at the beginning of each 
  3.22  fiscal year, and the authority shall review the list and 
  3.23  identify those municipalities having substantial economic 
  3.24  development projects.  After the available money is allocated to 
  3.25  municipalities in accordance with agency priorities, the 
  3.26  set-aside shall be used by the authority to award grants to 
  3.27  remaining municipalities that have been identified.  
  3.28     (c) Grants may also be awarded under this subdivision to 
  3.29  reimburse municipalities willing to proceed with projects and be 
  3.30  reimbursed in a subsequent year at the grant percentage 
  3.31  determined in paragraph (a).  
  3.32     (d) Municipalities that entered into an intent to award 
  3.33  agreement with the agency under paragraph (c), in the state 
  3.34  fiscal years 1985 to 1988, will be reimbursed at 55 percent or, 
  3.35  if the population of the municipality is 25,000 or less, 85 
  3.36  percent of the eligible cost of construction.  
  4.1      (e) Grants may be made to local units of government for 
  4.2   upgrading or replacing individual sewage treatment systems, 
  4.3   building subordinate service district and cluster systems, 
  4.4   installing alternative discharging sewage systems owned by water 
  4.5   quality cooperatives having a service agreement with local units 
  4.6   of government under section 471A.03, water filterization, and 
  4.7   sealing existing wells.