Establishing a state grant in aid program to provide financial assistance to the Blue Earth river basin initiative for administrative costs associated with the implementation of conservation practices, defining the Blue Earth river basin as the area within the watersheds of rivers and streams of the tributaries of the Minnesota River south through the city of Mankato, including all of Watonwan county and parts of Blue Earth, Brown, Cottonwood, Faribault, Freeborn, Jackson, LeSueur, Martin, Steele and Waseca counties in the boundary area; authorizing board of water and soil resources (BOWSR) grants to local government units and requiring the board to supervise the program and devise procedures and forms for grant applications; specifying certain conditions for the grants; authorizing a working agreement with the state of Iowa relating to implementation of conservation practices; requiring a board and river basin initiative report on the program to the legislature(ra)