1.1                          A bill for an act 
  1.2             relating to the environment; modifying provisions 
  1.3             relating to wastewater treatment; appropriating money; 
  1.4             amending Minnesota Statutes 1998, sections 115.07; 
  1.5             116.16, subdivision 2; and 116.182, subdivision 4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 115.07, is 
  1.8   amended to read: 
  1.9      115.07 [VIOLATIONS AND PROHIBITIONS.] 
  1.10     Subdivision 1.  [OBTAIN PERMIT.] It shall be unlawful for 
  1.11  any person: 
  1.12     (1) to construct, install, or operate a disposal system, or 
  1.13  any part thereof, until plans therefor shall have been submitted 
  1.14  to the agency unless the agency shall have waived the submission 
  1.15  thereof to it and; 
  1.16     (2) to make any change in, addition to, or extension of any 
  1.17  existing disposal system or point source, or part thereof; 
  1.18     (3) to effect any facility expansion, production increase, 
  1.19  or process modification which results in new or increased 
  1.20  discharge of pollutants; or 
  1.21     (4) to operate any disposal system or point source, or part 
  1.22  thereof, as changed, added to, or extended; 
  1.23  unless a written permit therefor shall have has been granted 
  1.24  by the agency.  
  1.25     Subd. 1a.  [STREAMS WITH EXTREME SEASONAL FLOWS.] For 
  2.1   disposal systems operated on streams with extreme seasonal 
  2.2   flows, the agency must allow seasonal permit limits based on a 
  2.3   fixed or variable effluent limit when the municipality operating 
  2.4   the disposal system requests them and is in compliance with 
  2.5   agency water quality standards. 
  2.6      Subd. 2.  [FACILITIES PLANS; PLANS AND SPECIFICATIONS FOR 
  2.7   DISPOSAL SYSTEMS AND POINT SOURCES.] (a) The agency shall not 
  2.8   grant any permit for any disposal system or point source unless 
  2.9   plans and specifications have been submitted and approved. 
  2.10     (b) Plans and specifications for any municipal wastewater 
  2.11  treatment works or disposal system must be based upon a 
  2.12  feasibility study or facilities plan to determine the wastewater 
  2.13  treatment needs of a project service area, to systematically 
  2.14  evaluate wastewater treatment alternatives that result in 
  2.15  compliance with enforceable water quality treatment standards, 
  2.16  conditions, effluent limitations, and to identify cost-effective 
  2.17  alternatives. 
  2.18     Subd. 3.  [PERMISSION FOR EXTENSION.] It shall be unlawful 
  2.19  for any person to make any change in, addition to or extension 
  2.20  of any existing disposal system or point source, or part 
  2.21  thereof, to effect any facility expansion, production increase, 
  2.22  or process modification which results in new or increased 
  2.23  discharges of pollutants, or to operate such system or point 
  2.24  source, or part thereof as so changed, added to, or extended 
  2.25  until plans and specifications therefor shall have been 
  2.26  submitted to the agency unless the agency shall have waived the 
  2.27  submission thereof to it and a written permit therefor shall 
  2.28  have been granted by the agency.  
  2.29     Subd. 3a.  [MUNICIPALITY FEASIBILITY STUDIES.] (a) Prior to 
  2.30  the filing of an application for a permit, any municipality that 
  2.31  requires a permit under this section must submit its feasibility 
  2.32  study or facilities plan to the agency and obtain certification 
  2.33  by the agency that a wastewater treatment disposal system is 
  2.34  necessary and that the municipality's feasibility study 
  2.35  establishes that there is no lowest cost alternative technology 
  2.36  or structural or nonstructural best management practice that 
  3.1   will meet the municipality's wastewater treatment needs. 
  3.2      (b) In addition to any other requirement imposed by law for 
  3.3   public notice and hearing to approve a facilities plan or 
  3.4   feasibility study by a municipality, the agency must give public 
  3.5   notice of the filing of a municipal facilities plan and consider 
  3.6   public comment on lowest cost alternative or innovative 
  3.7   technologies, including structural or nonstructural best 
  3.8   management practices, that would reduce or avoid the total cost 
  3.9   of the project as estimated in the municipality's facility plan. 
  3.10     (c) If the agency does not certify the municipality's 
  3.11  facilities plan, it may certify any lowest cost alternative 
  3.12  wastewater technology or structural or nonstructural best 
  3.13  management practice suggested by public comment.  Any permit 
  3.14  application based upon plans and specifications that do not 
  3.15  conform to the agency's certification shall be rejected as 
  3.16  incomplete. 
  3.17     (d) "Lowest cost alternative" or "innovative technology" 
  3.18  means any technology, system, method, or process for treating 
  3.19  wastewater which meets or exceeds the agency's standards and 
  3.20  rules for secondary or advanced wastewater treatment for 
  3.21  discharging to the waters of the state at the lowest cost 
  3.22  determined by the agency to be effective for achieving water 
  3.23  quality goals for the receiving waters. 
  3.24     (e) Nothing in this section shall modify any environmental 
  3.25  quality standard, limitation, rule, order, license, stipulation 
  3.26  agreement, or permit, nor shall this section eliminate or limit 
  3.27  any duty or obligation by the agency imposed by the 
  3.28  Environmental Policy Act, chapter 116D. 
  3.29     Subd. 3b.  [WAIVER OF PLANS AND SPECIFICATIONS 
  3.30  REQUIREMENTS.] The agency has authority to approve by general 
  3.31  permit, on a watershed or watershed-basin-wide basis, any 
  3.32  patented, modular, or standard manufactured alternative sewage 
  3.33  treatment system, technology, process, or method that it finds 
  3.34  is capable of reducing the total maximum daily loading into the 
  3.35  limited water segments of the watershed or watershed basin.  The 
  3.36  agency may waive the filing of plans and specifications for any 
  4.1   standard or manufactured wastewater treatment disposal 
  4.2   technology or component that is authorized by a general permit. 
  4.3      Sec. 2.  Minnesota Statutes 1998, section 116.16, 
  4.4   subdivision 2, is amended to read: 
  4.5      Subd. 2.  [DEFINITIONS.] In this section and sections 
  4.6   116.17 and 116.18: 
  4.7      (1) Agency means the Minnesota pollution control agency 
  4.8   created by this chapter; 
  4.9      (2) Municipality means any county, city, town, the 
  4.10  metropolitan council, or an Indian tribe or an authorized Indian 
  4.11  tribal organization, and any other governmental subdivision of 
  4.12  the state responsible by law for the prevention, control, and 
  4.13  abatement of water pollution in any area of the state; 
  4.14     (3) Water pollution control program means the Minnesota 
  4.15  state water pollution control program created by subdivision 1; 
  4.16     (4) Bond account means the Minnesota state water pollution 
  4.17  control bond account created in the state bond fund by section 
  4.18  116.17, subdivision 4; 
  4.19     (5) Terms defined in section 115.01 have the meanings 
  4.20  therein given them; 
  4.21     (6) The eligible cost of any municipal project, except as 
  4.22  otherwise provided in clause clauses (7), (8), and (9), includes 
  4.23  (a) preliminary planning to determine the economic, engineering, 
  4.24  and environmental feasibility of the project; (b) engineering, 
  4.25  architectural, legal, fiscal, economic, sociological, project 
  4.26  administrative costs of the agency and the municipality, and 
  4.27  other investigations and studies; (c) surveys, designs, plans, 
  4.28  working drawings, specifications, procedures, and other actions 
  4.29  necessary to the planning, design, and construction of the 
  4.30  project; (d) erection, building, acquisition, alteration, 
  4.31  remodeling, improvement, and extension of disposal systems; (e) 
  4.32  inspection and supervision of construction; and (f) all other 
  4.33  expenses of the kinds enumerated in section 475.65; 
  4.34     (7) For state grants under the state independent grants 
  4.35  program, the eligible cost includes the acquisition of land for 
  4.36  stabilization ponds, the construction of collector sewers for 
  5.1   totally unsewered statutory and home rule charter cities and 
  5.2   towns described under section 368.01, subdivision 1 or 1a, that 
  5.3   are in existence on January 1, 1985, and the provision of 
  5.4   reserve capacity sufficient to serve the reasonable needs of the 
  5.5   municipality for 20 years in the case of treatment works and 40 
  5.6   years in the case of sewer systems.  For state grants under the 
  5.7   state independent grants program, the eligible cost does not 
  5.8   include the provision of service to seasonal homes, or cost 
  5.9   increases from contingencies that exceed three percent of as-bid 
  5.10  costs or cost increases from unanticipated site conditions that 
  5.11  exceed an additional two percent of as-bid costs; 
  5.12     (8) Eligible costs for professional services for 
  5.13  preliminary planning or preparation of feasibility studies, 
  5.14  design, and plans, and specifications may not exceed a fair and 
  5.15  reasonable amount.  A "fair and reasonable fee" for a project 
  5.16  shall be determined in accordance with section 429.031, 
  5.17  subdivision 1, paragraph (c), and must not exceed ten percent of 
  5.18  the estimated cost of the improvement as finally certified by 
  5.19  the agency under section 115.07, subdivision 3a; 
  5.20     (9) Where the agency certifies a lowest cost alternative 
  5.21  technology or structural or nonstructural best management 
  5.22  practice, under section 115.07, the agency may allow as an 
  5.23  eligible cost a cost savings in an amount not less than 
  5.24  one-third of the difference between the municipality's estimated 
  5.25  cost of the project and the certified estimated cost for the 
  5.26  project.  Two-thirds of any cost savings allowed as an eligible 
  5.27  cost from any loan or grant administered by the authority shall 
  5.28  be applied by the agency toward development of water quality 
  5.29  monitoring, testing, a continual watershed-basin-wide water 
  5.30  quality planning process, and basin-wide water quality 
  5.31  management plans.  One-third shall be set aside for funding 
  5.32  continued research and development of alternative, 
  5.33  cost-effective wastewater and water quality treatment and 
  5.34  management systems, technologies, methods, and processes at the 
  5.35  University of Minnesota; and 
  5.36     (10) Authority means the Minnesota public facilities 
  6.1   authority established in section 446A.03. 
  6.2      Sec. 3.  Minnesota Statutes 1998, section 116.182, 
  6.3   subdivision 4, is amended to read: 
  6.4      Subd. 4.  [CERTIFICATION OF APPROVED PROJECTS.] The 
  6.5   commissioner shall certify to the authority each approved 
  6.6   project, including for wastewater treatment projects a statement 
  6.7   of the essential project components and associated costs, a 
  6.8   statement that the project is consistent with the agency's 
  6.9   areawide water quality management plan, and that there are no 
  6.10  lowest cost alternative or innovative technologies or structural 
  6.11  or nonstructural best management practices that would be capable 
  6.12  of meeting the applicable effluent limitations, water quality 
  6.13  standards, and public health requirements for 20 years. 
  6.14     Sec. 4.  [APPROPRIATION.] 
  6.15     $300,000 is appropriated for each year of the biennium from 
  6.16  the general fund to the commissioner of the pollution control 
  6.17  agency for a grant to the University of Minnesota center for 
  6.18  rural technology and cooperative development to enhance the 
  6.19  water quality cooperatives project.