1.1                          A bill for an act 
  1.2             relating to the environment; creating the Clean Water 
  1.3             Legacy Act; providing authority, direction, and 
  1.4             funding to achieve and maintain water quality 
  1.5             standards for Minnesota's surface waters in accordance 
  1.6             with section 303(d) of the federal Clean Water Act; 
  1.7             creating a municipal grant program; appropriating 
  1.8             money; amending Minnesota Statutes 2004, section 
  1.9             116.182, subdivision 2; proposing coding for new law 
  1.10            in Minnesota Statutes, chapter 446A; proposing coding 
  1.11            for new law as Minnesota Statutes, chapter 114D. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [114D.05] [CITATION.] 
  1.14     This chapter may be cited as the "Clean Water Legacy Act." 
  1.15     Sec. 2.  [114D.10] [LEGISLATIVE PURPOSE.] 
  1.16     The purpose of the Clean Water Legacy Act is to restore, 
  1.17  protect, and preserve the quality of Minnesota's surface waters 
  1.18  by providing authority, direction, and resources to restore and 
  1.19  maintain water quality standards for surface waters as required 
  1.20  by section 303(d) of the federal Clean Water Act, United States 
  1.21  Code, title 42, section 1313(d), and applicable federal 
  1.22  regulations. 
  1.23     Sec. 3.  [114D.15] [DEFINITIONS.] 
  1.24     Subdivision 1.  [APPLICATION.] The definitions provided in 
  1.25  this section apply to the terms used in this chapter. 
  1.26     Subd. 2.  [CITIZEN MONITORING.] "Citizen monitoring" means 
  1.27  monitoring of surface water quality by individuals and 
  1.28  nongovernmental organizations that is consistent with Pollution 
  2.1   Control Agency guidance on monitoring procedures, quality 
  2.2   assurance protocols, and data management. 
  2.3      Subd. 3.  [CLEAN WATER COUNCIL.] "Clean Water Council" or 
  2.4   "council" means the Clean Water Council created pursuant to 
  2.5   section 114D.30, subdivision 1. 
  2.6      Subd. 4.  [FEDERAL TMDL REQUIREMENTS.] "Federal TMDL 
  2.7   requirements" means the requirements of section 303(d) of the 
  2.8   Clean Water Act, United States Code, title 42, section 1313(d), 
  2.9   and associated regulations and guidance. 
  2.10     Subd. 5.  [IMPAIRED WATER.] "Impaired water" means surface 
  2.11  water that does not meet applicable water quality standards. 
  2.12     Subd. 6.  [PUBLIC AGENCIES.] "Public agencies" means all 
  2.13  state agencies, political subdivisions, joint powers 
  2.14  organizations, and special purpose units of government with 
  2.15  authority, responsibility, or expertise in protecting, 
  2.16  restoring, or preserving the quality of surface waters, managing 
  2.17  or planning for surface waters and related lands, or financing 
  2.18  waters-related projects.  "Public agencies" also includes the 
  2.19  University of Minnesota and other public education institutions. 
  2.20     Subd. 7.  [RESTORATION.] "Restoration" means actions, 
  2.21  including effectiveness monitoring, that are taken to restore 
  2.22  and maintain water quality standards for impaired waters in 
  2.23  accordance with a TMDL that has been approved by the United 
  2.24  States Environmental Protection Agency under federal TMDL 
  2.25  requirements. 
  2.26     Subd. 8.  [SURFACE WATERS.] "Surface waters" means waters 
  2.27  of the state as defined in section 115.01, subdivision 22, 
  2.28  excluding groundwater as defined in section 115.01, subdivision 
  2.29  6. 
  2.30     Subd. 9.  [THIRD-PARTY TMDL.] "Third-party TMDL" means a 
  2.31  TMDL that is developed in whole or in part cooperatively between 
  2.32  representatives from local units of government where the TMDL is 
  2.33  being completed and a qualified public or private nonprofit 
  2.34  entity other than the Pollution Control Agency consistent with 
  2.35  the goals, policies, and priorities in section 114D.20. 
  2.36     Subd. 10.  [TOTAL MAXIMUM DAILY LOAD OR TMDL.] "Total 
  3.1   maximum daily load" or "TMDL" means a calculation of the maximum 
  3.2   amount of a pollutant that may be introduced into a surface 
  3.3   water and still ensure that applicable water quality standards 
  3.4   for that water are restored and maintained.  A TMDL is the sum 
  3.5   of the pollutant load allocations for all sources of the 
  3.6   pollutant, including a wasteload allocation for point sources, a 
  3.7   load allocation for nonpoint sources and natural background, an 
  3.8   allocation for future growth of point and nonpoint sources, and 
  3.9   a margin of safety to account for uncertainty about the 
  3.10  relationship between pollutant loads and the quality of the 
  3.11  receiving surface water.  "Natural background" means 
  3.12  characteristics of the water body resulting from the 
  3.13  multiplicity of factors in nature, including climate and 
  3.14  ecosystem dynamics, that affect the physical, chemical, or 
  3.15  biological conditions in a water body, but does not include 
  3.16  measurable and distinguishable pollution that is attributable to 
  3.17  human activity or influence.  A TMDL must take into account 
  3.18  seasonal variations. 
  3.19     Subd. 11.  [WATER QUALITY STANDARDS.] "Water quality 
  3.20  standards" for Minnesota surface waters are found in Minnesota 
  3.21  Rules, chapters 7050 and 7052. 
  3.22     Sec. 4.  [114D.20] [IMPLEMENTATION; COORDINATION; GOALS; 
  3.23  POLICIES; AND PRIORITIES.] 
  3.24     Subdivision 1.  [COORDINATION AND COOPERATION.] In 
  3.25  implementing this chapter, public agencies and private entities 
  3.26  shall take into consideration the relevant provisions of local 
  3.27  and other applicable water management, conservation, land use, 
  3.28  land management, and development plans and programs.  Public 
  3.29  agencies with authority for local water management, 
  3.30  conservation, land use, land management, and development plans 
  3.31  shall take into consideration the manner in which their plans 
  3.32  affect the implementation of this chapter.  Public agencies 
  3.33  shall identify opportunities to participate and assist in the 
  3.34  successful implementation of this chapter, including the funding 
  3.35  or technical assistance needs, if any, that may be necessary.  
  3.36  In implementing this chapter, public agencies shall endeavor to 
  4.1   engage the cooperation of organizations and individuals whose 
  4.2   activities affect the quality of surface waters, including point 
  4.3   and nonpoint sources of pollution, and who have authority and 
  4.4   responsibility for water management, planning, and protection.  
  4.5   To the extent practicable, public agencies shall endeavor to 
  4.6   enter into formal and informal agreements and arrangements with 
  4.7   federal agencies and departments to jointly utilize staff and 
  4.8   resources to deliver programs or conduct activities to achieve 
  4.9   the intent of this chapter, including efforts under the federal 
  4.10  Clean Water Act and other federal farm and soil and water 
  4.11  conservation programs. 
  4.12     Subd. 2.  [GOALS FOR IMPLEMENTATION.] The following goals 
  4.13  must guide the implementation of this chapter: 
  4.14     (1) to identify impaired waters in accordance with federal 
  4.15  TMDL requirements within ten years after the effective date of 
  4.16  this section and thereafter to ensure continuing evaluation of 
  4.17  surface waters for impairments; 
  4.18     (2) to submit TMDL's to the United States Environmental 
  4.19  Protection Agency for all impaired waters in a timely manner in 
  4.20  accordance with federal TMDL requirements; 
  4.21     (3) to set a reasonable time for implementing restoration 
  4.22  of each identified impaired water; 
  4.23     (4) to provide assistance and incentives to prevent waters 
  4.24  from becoming impaired and to improve the quality of waters 
  4.25  which are listed as impaired but have no approved TMDL 
  4.26  addressing the impairment; and 
  4.27     (5) to promptly seek the delisting of waters from the 
  4.28  impaired waters list when those waters are shown to achieve the 
  4.29  designated uses applicable to the waters. 
  4.30     Subd. 3.  [IMPLEMENTATION POLICIES.] The following policies 
  4.31  must guide the implementation of this chapter: 
  4.32     (1) develop regional and watershed TMDL's, and TMDL's for 
  4.33  multiple pollutants, where reasonable and feasible; 
  4.34     (2) maximize use of available organizational, technical, 
  4.35  and financial resources to perform sampling, monitoring, and 
  4.36  other activities to identify impaired waters, including use of 
  5.1   citizen monitoring; 
  5.2      (3) maximize opportunities for restoration of impaired 
  5.3   waters, by prioritizing and targeting of available programmatic, 
  5.4   financial, and technical resources and by providing additional 
  5.5   state resources to complement and leverage available resources; 
  5.6      (4) use existing regulatory authorities to achieve 
  5.7   restoration for point and nonpoint sources of pollution where 
  5.8   applicable, and promote the development and use of effective 
  5.9   nonregulatory measures to address pollution sources for which 
  5.10  regulations are not applicable; 
  5.11     (5) use restoration methods that have a demonstrated 
  5.12  effectiveness in reducing impairments and provide the greatest 
  5.13  long-term positive impact on water quality protection and 
  5.14  improvement while incorporating innovative approaches on a 
  5.15  case-by-case basis; 
  5.16     (6) identify for the legislature any innovative approaches 
  5.17  that may strengthen or complement existing programs; and 
  5.18     (7) identify and encourage implementation of measures to 
  5.19  prevent waters from becoming impaired and to improve the quality 
  5.20  of waters that are listed as impaired but have no approved TMDL 
  5.21  addressing the impairment. 
  5.22     Subd. 4.  [PRIORITIES FOR IDENTIFYING IMPAIRED WATERS.] The 
  5.23  Pollution Control Agency, in accordance with federal TMDL 
  5.24  requirements, shall set priorities for identifying impaired 
  5.25  waters, giving consideration to: 
  5.26     (1) waters where impairments would pose the greatest 
  5.27  potential risk to human or aquatic health; and 
  5.28     (2) waters where data developed through public agency or 
  5.29  citizen monitoring or other means, provides evidence that an 
  5.30  impaired condition exists. 
  5.31     Subd. 5.  [PRIORITIES FOR PREPARATION OF TMDL'S.] The Clean 
  5.32  Water Council shall recommend priorities for scheduling and 
  5.33  preparing TMDL's taking into account the severity of the 
  5.34  impairment, the designated uses of those waters, and other 
  5.35  applicable federal TMDL requirements.  In recommending 
  5.36  priorities, the council shall also give consideration to waters 
  6.1   and watersheds: 
  6.2      (1) with impairments that pose the greatest potential risk 
  6.3   to human health; 
  6.4      (2) with impairments that pose the greatest potential risk 
  6.5   to aquatic health; 
  6.6      (3) where other public agencies and participating 
  6.7   organizations and individuals, especially local, basinwide, or 
  6.8   regional agencies or organizations, have demonstrated readiness 
  6.9   to assist in carrying out the responsibilities, including 
  6.10  availability and organization of human, technical, and financial 
  6.11  resources necessary to undertake the work; and 
  6.12     (4) where there is demonstrated coordination and 
  6.13  cooperation among cities, counties, watershed districts, and 
  6.14  soil and water conservation districts in planning and 
  6.15  implementation of activities that will assist in carrying out 
  6.16  the responsibilities. 
  6.17     Subd. 6.  [PRIORITIES FOR RESTORATION OF IMPAIRED 
  6.18  WATERS.] In implementing restoration of impaired waters, in 
  6.19  addition to the priority considerations in subdivision 5 the 
  6.20  Clean Water Council shall give priority in its recommendations 
  6.21  for restoration funding from the clean water legacy account to 
  6.22  restoration projects that: 
  6.23     (1) coordinate with and utilize existing local authorities 
  6.24  and infrastructure for implementation; 
  6.25     (2) can be implemented in whole or in part by providing 
  6.26  support for existing or ongoing restoration efforts; and 
  6.27     (3) most effectively leverage other sources of restoration 
  6.28  funding, including federal, state, local, and private sources of 
  6.29  funds; and 
  6.30     (4) show a high potential for early restoration and 
  6.31  delisting based upon data developed through public agency or 
  6.32  citizen monitoring or other means. 
  6.33     Subd. 7.  [PRIORITIES FOR FUNDING PREVENTION ACTIONS.] The 
  6.34  Clean Water Council shall apply the priorities applicable under 
  6.35  subdivision 6, as far as practicable, when recommending 
  6.36  priorities for funding actions to prevent waters from becoming 
  7.1   impaired and to improve the quality of waters which are listed 
  7.2   as impaired but have no approved TMDL. 
  7.3      Sec. 5.  [114D.25] [ADMINISTRATION; POLLUTION CONTROL 
  7.4   AGENCY.] 
  7.5      Subdivision 1.  [GENERAL DUTIES AND AUTHORITIES.] (a) The 
  7.6   Pollution Control Agency, in accordance with federal TMDL 
  7.7   requirements, shall:  identify impaired waters and propose a 
  7.8   list of the waters for review and approval by the United States 
  7.9   Environmental Protection Agency; develop and approve TMDL's for 
  7.10  listed impaired waters and submit the approved TMDL's to the 
  7.11  United State Environmental Protection Agency for final approval; 
  7.12  and propose to delist waters from the Environmental Protection 
  7.13  Agency impaired waters list. 
  7.14     (b) A TMDL must include a statement of the facts and 
  7.15  scientific data supporting the TMDL and a list of potential 
  7.16  implementation options, including a range of estimates of the 
  7.17  cost of implementation and individual wasteload data for any 
  7.18  point sources addressed by the TMDL.  
  7.19     (c) The implementation information need not be sent to the 
  7.20  United States Environmental Protection Agency for review and 
  7.21  approval. 
  7.22     Subd. 2.  [ADMINISTRATIVE PROCEDURES FOR TMDL 
  7.23  APPROVAL.] The approval of a TMDL by the Pollution Control 
  7.24  Agency is a final decision of the agency for purposes of section 
  7.25  115.05, and is subject to the contested case procedures of 
  7.26  sections 14.57 to 14.62 in accordance with agency procedural 
  7.27  rules.  The agency shall not submit an approved TMDL to the 
  7.28  United States Environmental Protection Agency until the time for 
  7.29  commencing judicial review has run or the judicial review 
  7.30  process has been completed.  A TMDL is not subject to the 
  7.31  rulemaking requirements of chapter 14, including section 14.386. 
  7.32     Subd. 3.  [TMDL SUBMITTAL REQUIREMENT.] Before submitting a 
  7.33  TMDL to the United States Environmental Protection Agency, the 
  7.34  Pollution Control Agency shall comply with the notice and 
  7.35  procedure requirements of this section.  If a contested case 
  7.36  proceeding is not required for a proposed TMDL, the agency may 
  8.1   submit the TMDL to the United States Environmental Protection 
  8.2   Agency no earlier than 30 days after the notice required in 
  8.3   subdivision 4.  If a contested case proceeding is required for a 
  8.4   TMDL, the TMDL may be submitted to the United States 
  8.5   Environmental Protection Agency after the contested case 
  8.6   proceeding and appeal process is completed. 
  8.7      Subd. 4.  [TMDL NOTICE; CONTENTS.] The Pollution Control 
  8.8   Agency shall give notice of its intention to submit a TMDL to 
  8.9   the United States Environmental Protection Agency.  The notice 
  8.10  must be given by publication in the State Register and by United 
  8.11  States mail to persons who have registered their names with the 
  8.12  agency.  The notice must include either a copy of the proposed 
  8.13  TMDL or an easily readable and understandable description of its 
  8.14  nature and effect and an announcement of how free access to the 
  8.15  proposed TMDL can be obtained.  In addition, the agency shall 
  8.16  make reasonable efforts to notify persons or classes of persons 
  8.17  who may be significantly affected by the TMDL by giving notice 
  8.18  of its intention in newsletters, newspapers, or other 
  8.19  publications, or through other means of communication.  The 
  8.20  notice must include a statement informing the public: 
  8.21     (1) that the public has 30 days in which to submit comment 
  8.22  in support of or in opposition to the proposed TMDL and that 
  8.23  comment is encouraged; 
  8.24     (2) that each comment should identify the portion of the 
  8.25  proposed TMDL addressed, the reason for the comment, and any 
  8.26  change proposed; 
  8.27     (3) of the manner in which persons must request a contested 
  8.28  case proceeding on the proposed TMDL; 
  8.29     (4) that the proposed TMDL may be modified if the 
  8.30  modifications are supported by the data and views submitted; and 
  8.31     (5) the date on which the 30-day comment period ends. 
  8.32     Subd. 5.  [THIRD-PARTY TMDL DEVELOPMENT.] The Pollution 
  8.33  Control Agency may enter agreements with any qualified public or 
  8.34  private nonprofit entity setting forth the terms and conditions 
  8.35  under which that entity is authorized to develop a third-party 
  8.36  TMDL.  Before entering into an agreement with an entity to 
  9.1   develop a third-party TMDL, the Pollution Control Agency must 
  9.2   make reasonable efforts to notify cities, counties, townships, 
  9.3   soil and water conservation districts, and watershed districts 
  9.4   in the area that would be affected by the TMDL.  An agreement 
  9.5   with a third party for a TMDL must ensure that the technical 
  9.6   committee consist of at least 60 percent local elected officials 
  9.7   or their designees.  In determining whether an entity is 
  9.8   qualified to develop a third-party TMDL, the agency shall 
  9.9   consider the technical and administrative qualifications of the 
  9.10  entity and may not enter into an agreement with a third-party 
  9.11  entity that has a conflict of interest with respect to the 
  9.12  development of the third-party TMDL.  A third-party TMDL is 
  9.13  subject to modification and approval by the Pollution Control 
  9.14  Agency, and must be approved by the Pollution Control Agency 
  9.15  before it is submitted to the United States Environmental 
  9.16  Protection Agency.  Before submitting a third-party TMDL to the 
  9.17  Environmental Protection Agency, the Pollution Control Agency 
  9.18  must comply with the notice and procedure requirements of 
  9.19  subdivision 3.  Approval of a third-party TMDL by the Pollution 
  9.20  Control Agency is subject to judicial review and contested case 
  9.21  procedures in the same manner as approval of any other TMDL by 
  9.22  the Pollution Control Agency.  The Pollution Control Agency 
  9.23  shall consider authorizing the development of third-party TMDL's 
  9.24  consistent with the goals, policies, and priorities determined 
  9.25  under section 116.384. 
  9.26     Sec. 6.  [114D.30] [CLEAN WATER COUNCIL.] 
  9.27     Subdivision 1.  [CREATION; DUTIES.] A Clean Water Council 
  9.28  is created to advise on the administration and implementation of 
  9.29  this chapter, and foster coordination and cooperation as 
  9.30  described in section 114D.20, subdivision 1.  The council may 
  9.31  also advise on the development of appropriate processes for 
  9.32  expert scientific review as described in section 114D.35, 
  9.33  subdivision 2.  The Pollution Control Agency shall provide 
  9.34  administrative support for the council with the support of other 
  9.35  member agencies.  The members of the council shall elect a chair 
  9.36  from the nonagency members of the council. 
 10.1      Subd. 2.  [MEMBERSHIP; APPOINTMENT.] The governor must 
 10.2   appoint the members of the council.  The governor must appoint 
 10.3   one person from each of the following agencies:  the Department 
 10.4   of Natural Resources, the Department of Agriculture, the 
 10.5   Pollution Control Agency, and the Board of Water and Soil 
 10.6   Resources.  The governor must appoint 14 additional nonagency 
 10.7   members of the council as follows: 
 10.8      (1) two members representing statewide farm organizations; 
 10.9      (2) two members representing business organizations; 
 10.10     (3) two members representing environmental organizations; 
 10.11     (4) one member representing soil and water conservation 
 10.12  districts; 
 10.13     (5) one member representing watershed districts; 
 10.14     (6) one member representing organizations focused on 
 10.15  improvement of Minnesota lakes or streams; 
 10.16     (7) one member representing an organization of county 
 10.17  governments; 
 10.18     (8) two members representing organizations of city 
 10.19  governments; 
 10.20     (9) one member representing the Metropolitan Council 
 10.21  established under section 473.123; and 
 10.22     (10) one member representing an organization of township 
 10.23  governments. 
 10.24     In making appointments, the governor must attempt to 
 10.25  provide for geographic balance. 
 10.26     Subd. 3.  [TERMS; COMPENSATION; REMOVAL.] The initial terms 
 10.27  of members representing state agencies and the Metropolitan 
 10.28  Council expire on the first Monday in January, 2007.  
 10.29  Thereafter, the terms of members representing the state agencies 
 10.30  and the Metropolitan Council are four years and are coterminous 
 10.31  with the governor.  The terms of other members of the council 
 10.32  shall be as provided in section 15.059, subdivision 2.  Members 
 10.33  may serve until their successors are appointed and qualify.  
 10.34  Compensation and removal of council members is as provided in 
 10.35  section 15.059, subdivisions 3 and 4.  A vacancy on the council 
 10.36  may be filled by the appointing authority provided in 
 11.1   subdivision 1 for the remainder of the unexpired term. 
 11.2      Subd. 4.  [IMPLEMENTATION PLAN.] The Clean Water Council 
 11.3   shall prepare a plan for implementation of this chapter.  The 
 11.4   plan shall address general procedures and timeframes for 
 11.5   implementing this chapter, and shall include a more specific 
 11.6   implementation work plan for the next fiscal biennium and a 
 11.7   framework for setting priorities to address impaired waters 
 11.8   consistent with section 114D.45, subdivisions 2 to 7.  The 
 11.9   council shall issue the first implementation plan under this 
 11.10  subdivision by December 1, 2005, and shall issue a revised work 
 11.11  plan by December 1 of each even-numbered year thereafter. 
 11.12     Subd. 5.  [RECOMMENDATIONS ON APPROPRIATION OF FUNDS.] The 
 11.13  Clean Water Council shall recommend to the governor the manner 
 11.14  in which money from the clean water legacy account should be 
 11.15  appropriated for the purposes identified in section 114D.45, 
 11.16  subdivision 3.  The council's recommendations must be consistent 
 11.17  with the purposes, policies, goals, and priorities in sections 
 11.18  114D.05 to 114D.35, and shall allocate adequate support and 
 11.19  resources to identify impaired waters, develop TMDL's, implement 
 11.20  restoration of impaired waters, and provide assistance and 
 11.21  incentives to prevent waters from becoming impaired and improve 
 11.22  the quality of waters which are listed as impaired but have no 
 11.23  approved TMDL.  The council must recommend methods of ensuring 
 11.24  that awards of grants, loans, or other funds from the clean 
 11.25  water legacy account specify the outcomes to be achieved as a 
 11.26  result of the funding, and specify standards to hold the 
 11.27  recipient accountable for achieving the desired outcomes. 
 11.28     Subd. 6.  [BIENNIAL REPORT TO LEGISLATURE.] By December 1 
 11.29  of each even-numbered year, the council shall submit a report to 
 11.30  the legislature on the activities for which money from the clean 
 11.31  water legacy account has been or will be spent for the current 
 11.32  biennium, and the activities for which money from the account is 
 11.33  recommended to be spent in the next biennium.  The report due on 
 11.34  December 1, 2014, must include an evaluation of the progress 
 11.35  made through June 30, 2014, in implementing this chapter, the 
 11.36  need for funding of future implementation of those sections, and 
 12.1   recommendations for the sources of such funding. 
 12.2      Sec. 7.  [114D.35] [PUBLIC AND STAKEHOLDER PARTICIPATION; 
 12.3   SCIENTIFIC REVIEW; EDUCATION.] 
 12.4      Subdivision 1.  [PUBLIC AND STAKEHOLDER PARTICIPATION.] 
 12.5   Public agencies and private entities involved in the 
 12.6   implementation of this chapter shall encourage participation by 
 12.7   the public and stakeholders, including local citizens, land 
 12.8   owners and managers, and public and private organizations, in 
 12.9   the identification of impaired waters, in developing TMDL's, and 
 12.10  in planning and implementing restoration of impaired waters.  In 
 12.11  particular, the Pollution Control Agency shall make reasonable 
 12.12  efforts to provide timely information to the public and to 
 12.13  stakeholders about impaired waters that have been identified by 
 12.14  the agency.  The agency shall seek broad and early public and 
 12.15  stakeholder participation in scoping the activities necessary to 
 12.16  develop a TMDL, including the scientific models, methods, and 
 12.17  approaches to be used in TMDL development, and to implement 
 12.18  restoration pursuant to section 114D.15, subdivision 7. 
 12.19     Subd. 2.  [EXPERT SCIENTIFIC ADVICE.] The Clean Water 
 12.20  Council and public agencies and private entities shall make use 
 12.21  of available expertise from educational, research, and technical 
 12.22  organizations, including the University of Minnesota and other 
 12.23  higher education institutions, to provide appropriate 
 12.24  independent expert advice on models, methods, and approaches 
 12.25  used in identifying impaired waters, developing TMDL's, and 
 12.26  implementing prevention and restoration. 
 12.27     Subd. 3.  [EDUCATION.] The Clean Water Council shall 
 12.28  develop strategies for informing, educating, and encouraging the 
 12.29  participation of citizens, stakeholders, and others regarding 
 12.30  the identification of impaired waters, development of TMDL's, 
 12.31  and development and implementation of restoration for impaired 
 12.32  waters.  Public agencies shall be responsible for implementing 
 12.33  the strategies. 
 12.34     Sec. 8.  [114D.40] [CLEAN WATER FEES.] 
 12.35     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 12.36  subdivision apply to the terms used in this section. 
 13.1      (b) "Average daily discharge or application limitation" 
 13.2   means the highest allowable average of daily discharge or land 
 13.3   application during a calendar day or any 24-hour period that 
 13.4   reasonably represents the discharge during the calendar day for 
 13.5   the purposes of sampling, calculated as the sum of all daily 
 13.6   discharges or land applications measured during a day, divided 
 13.7   by the number of daily discharges or land applications during 
 13.8   that day. 
 13.9      (c) "Effluent flow" means the flow of domestic wastewater 
 13.10  from a residential dwelling or nonresidential establishment.  
 13.11  The rate of water usage by a residential dwelling or 
 13.12  nonresidential establishment must be substituted for the 
 13.13  effluent flow if effluent flow from the residential dwelling or 
 13.14  nonresidential establishment is not measured. 
 13.15     (d) "Fee collection authorities" means counties, the 
 13.16  Pollution Control Agency, and public agencies with authority to 
 13.17  collect fees and charges for sewer services provided by a 
 13.18  publicly owned treatment works. 
 13.19     (e) "Individual sewage treatment system" means a sewage 
 13.20  treatment system, or part thereof, that is regulated by the 
 13.21  state or its political subdivisions, and which serves a 
 13.22  residential dwelling, or nonresidential establishment, or group 
 13.23  thereof, using sewage tanks followed by soil treatment and 
 13.24  disposal or using advanced treatment devices that discharge 
 13.25  below final grade.  "Individual sewage treatment system" also 
 13.26  includes sewage holding tanks and privies. 
 13.27     (f) "Nonresidential establishment" means a structure or 
 13.28  portion of a structure that is not a residential dwelling. 
 13.29     (g) "Publicly owned treatment works" means a device or 
 13.30  system used in the treatment, recycling, or reclamation of 
 13.31  municipal sewage or liquid industrial waste that is owned by the 
 13.32  state, a political subdivision, sanitary district, or other 
 13.33  public organization established under state law and which relies 
 13.34  primarily on wastewater treatment systems other than individual 
 13.35  sewage treatment systems. 
 13.36     (h) "Residential dwelling" means a room or group of rooms 
 14.1   used by an individual, family, or other group as living quarters 
 14.2   which includes facilities for sleeping, eating, cooking, and 
 14.3   sanitation.  "Residential dwelling" includes apartments, 
 14.4   condominiums, cooperatives, attached and detached dwellings, 
 14.5   mobile homes, seasonal or recreational dwellings, or a dwelling 
 14.6   in which a resident of that dwelling engages in a business or 
 14.7   employment.  A farm that includes buildings is treated as a 
 14.8   residential dwelling.  "Residential dwelling" does not include: 
 14.9      (1) hotels, motels, resorts, boarding houses, clubs, 
 14.10  hospitals, nursing homes, dormitories, schools, colleges, or 
 14.11  similar institutional or transient facility; or 
 14.12     (2) any residential dwelling containing not more than two 
 14.13  residential dwelling units which receive a single bill for sewer 
 14.14  services with one or more nonresidential establishments. 
 14.15     Subd. 2.  [ASSESSMENT OF CLEAN WATER FEES.] A clean water 
 14.16  fee is imposed as provided in subdivision 3 on all discharges of 
 14.17  domestic and industrial wastewater to sanitary sewer systems; 
 14.18  wastewater treatment plants, facilities, or systems; individual 
 14.19  sewage treatment systems; and other systems. 
 14.20     Subd. 3.  [FEE AMOUNTS.] (a) The amounts of the clean water 
 14.21  fees imposed under this section are as provided in this 
 14.22  subdivision. 
 14.23     (b) For discharges to sanitary sewer systems served by a 
 14.24  publicly owned treatment works, the clean water fees are as 
 14.25  follows: 
 14.26     (1) for each residential dwelling that receives a separate 
 14.27  bill for service and contains not more than two residential 
 14.28  dwelling units, $36 per year; 
 14.29     (2) for a structure that contains more than two residential 
 14.30  dwelling units that do not receive separate bills for service, 
 14.31  clean water fees must be calculated as follows: 
 14.32     (i) $36 per year for each residential dwelling unit in the 
 14.33  structure; and 
 14.34     (ii) any nonresidential establishment which is billed 
 14.35  together with the residential dwelling units is subject to a 
 14.36  clean water fee on that portion of the effluent flow for the 
 15.1   structure that is attributable to that nonresidential 
 15.2   establishment, and the fee must be calculated based on effluent 
 15.3   flows as provided in clause (3); and 
 15.4      (3) for each nonresidential establishment that receives a 
 15.5   separate bill for service, the fee is as follows: 
 15.6      (i) if average effluent flow is less than 10,000 gallons 
 15.7   per day, $120 per year; 
 15.8      (ii) if average effluent flow is 10,000 gallons per day or 
 15.9   greater, but less than 100,000 gallons per day, $300 per year; 
 15.10  and 
 15.11     (iii) if average effluent flow is 100,000 gallons per day 
 15.12  or greater, $600 per year. 
 15.13     (c) Except as provided in paragraph (d), for discharges 
 15.14  from wastewater treatment facilities, other than publicly owned 
 15.15  treatment works, which are required to obtain a national 
 15.16  pollution discharge elimination system or state disposal system 
 15.17  permit, the fee is as follows: 
 15.18     (1) for permits authorizing an average daily discharge or 
 15.19  land application limitation of less than 10,000 gallons on an 
 15.20  annualized basis, $120 per year; 
 15.21     (2) for permits authorizing an average daily discharge or 
 15.22  land application limitation of 10,000 gallons per day or 
 15.23  greater, but less than 100,000 gallons per day, $300 per year; 
 15.24  and 
 15.25     (3) for permits authorizing an average daily discharge or 
 15.26  land application limitation of 100,000 gallons per day or 
 15.27  greater, $600 per year. 
 15.28     (d) A clean water fee must not be imposed under paragraph 
 15.29  (c), on discharges from a facility that operates under a general 
 15.30  permit issued by the agency. 
 15.31     (e) For discharges to domestic wastewater treatment systems 
 15.32  permitted by the Pollution Control Agency, excluding publicly 
 15.33  owned treatment works, the fee is $36 per year for each 
 15.34  residential dwelling and nonresidential establishment that 
 15.35  discharges to the systems.  No single residential unit or 
 15.36  nonresidential establishment may be required to pay more than 
 16.1   one clean water fee under this paragraph. 
 16.2      (f) For individual sewage treatment systems not permitted 
 16.3   by the Pollution Control Agency, the fee is $36 per year for 
 16.4   each residential dwelling and nonresidential establishment 
 16.5   served by the system.  No single residential unit or 
 16.6   nonresidential establishment may be required to pay more than 
 16.7   one clean water fee under this paragraph. 
 16.8      (g) For any wastewater system not described in paragraphs 
 16.9   (b) to (f), that accepts and discharges untreated or partially 
 16.10  treated wastewater, the fee is $36 per year for each residential 
 16.11  dwelling and nonresidential establishment that discharges to the 
 16.12  system.  
 16.13     (h) Any single residential unit or nonresidential 
 16.14  establishment that would be subject to payment of a clean water 
 16.15  fee under both paragraphs (f) and (g) may only be required to 
 16.16  pay the clean water fee under paragraph (e). 
 16.17     Subd. 4.  [COLLECTION AND ENFORCEMENT.] (a) Fees imposed on 
 16.18  discharges to sanitary sewer systems served by publicly owned 
 16.19  treatment works must be collected by the public agency that 
 16.20  collects fees or charges from the users of that service.  The 
 16.21  fees must be collected at the same time and with the same 
 16.22  frequency as fees or charges for service are collected.  The 
 16.23  collecting entity may enforce payment of the fees using the same 
 16.24  enforcement authority applicable to sewer service charges. 
 16.25     (b) Fees imposed under subdivision 3, paragraphs (c) and 
 16.26  (e), must be collected by the Pollution Control Agency from the 
 16.27  permittees for the facilities or systems.  The Pollution Control 
 16.28  Agency may enforce payment of the fees using the same 
 16.29  enforcement authority applicable to permit fees. 
 16.30     (c) Fees imposed under subdivision 3, paragraphs (f) and 
 16.31  (g), must be collected by each county, from the owners of the 
 16.32  residential dwellings or nonresidential establishments subject 
 16.33  to the fee that are located in the county.  The counties shall 
 16.34  collect the fees at least once per calendar year, but may 
 16.35  collect the fees more frequently.  If fees are collected 
 16.36  annually, the counties shall require payment of the fees by not 
 17.1   later than February 1 following the calendar year for which the 
 17.2   fee is imposed.  The counties shall determine that manner in 
 17.3   which the fees are collected.  Each county shall enact and 
 17.4   enforce an appropriate ordinance to enforce payment of the fees. 
 17.5      (d) By August 15, 2005, the counties shall identify and 
 17.6   develop a list of all persons subject to the fees under 
 17.7   subdivision 3, paragraphs (f) and (g), located in that county.  
 17.8   The counties shall annually update the list by August 15 of each 
 17.9   year. 
 17.10     (e) The fee collection authorities shall exempt a person 
 17.11  from payment of the clean water fee for a discharge of 
 17.12  wastewater from a residential dwelling if the fee collection 
 17.13  authority determines that the person meets any of the criteria 
 17.14  for eligibility under the telephone assistance plan established 
 17.15  under section 237.70, or that the person is receiving telephone 
 17.16  assistance under that plan.  The Pollution Control Agency shall 
 17.17  create a form that fee collection authorities shall use to 
 17.18  determine eligibility for exemption under this paragraph. 
 17.19     (f) Any statement, invoice, or other document used to 
 17.20  collect the fees under this subdivision must clearly identify 
 17.21  the fee as the "Minnesota Clean Water Fee." 
 17.22     Subd. 5.  [PAYMENT TO COMMISSIONER OF REVENUE; DEPOSIT.] (a)
 17.23  The fee collection authorities shall remit all fees collected 
 17.24  under this section, less the costs to collect the fees, not to 
 17.25  exceed five percent of the total collected, to the commissioner 
 17.26  of revenue.  The fees must be remitted in a manner prescribed by 
 17.27  the commissioner.  Amounts collected during the previous 
 17.28  calendar quarter must be remitted to the commissioner on April 
 17.29  30, July 31, October 31, and January 31.  In addition to the 
 17.30  costs of collecting the fees, the fee collection authorities may 
 17.31  retain from fees collected for calendar year 2006 the costs to 
 17.32  develop methods and procedures for collecting the clean water 
 17.33  fees. 
 17.34     (b) The commissioner of revenue shall deposit all clean 
 17.35  water fees remitted by the fee collection authorities in the 
 17.36  clean water legacy account. 
 18.1      (c) The assessment, audit, refund, penalty, interest, 
 18.2   enforcement, collection remedies, appeal, and administrative 
 18.3   provisions of chapters 270 and 289A that are applicable to fees 
 18.4   imposed under chapter 297A apply to the fees imposed by this 
 18.5   section. 
 18.6      Subd. 6.  [EFFECTIVE DATE; REPEALER.] The fees imposed by 
 18.7   this section are effective and collection must begin for the 
 18.8   year beginning January 1, 2006.  This section is repealed on 
 18.9   December 31, 2015. 
 18.10     Sec. 9.  [114D.45] [CLEAN WATER LEGACY ACCOUNT.] 
 18.11     Subdivision 1.  [CREATION.] The clean water legacy account 
 18.12  is created as an account in the environmental fund.  Money in 
 18.13  the account must be made available for the implementation of 
 18.14  this chapter and sections 446A.073 and 446A.074, without 
 18.15  supplanting or taking the place of any other funds which are 
 18.16  currently available or may become available from any other 
 18.17  source, whether federal, state, local, or private, for 
 18.18  implementation of those sections. 
 18.19     Subd. 2.  [SOURCES OF REVENUE.] The following revenues must 
 18.20  be deposited in the clean water legacy account: 
 18.21     (1) the revenue from the clean water fees collected under 
 18.22  section 114D.40; and 
 18.23     (2) interest accrued on the account. 
 18.24     Subd. 3.  [USES OF ACCOUNT.] Subject to appropriation by 
 18.25  the legislature, the clean water legacy account may be used for 
 18.26  the following purposes: 
 18.27     (1) to provide grants, loans, and technical assistance to 
 18.28  public agencies and others who are participating in the process 
 18.29  of identifying impaired waters, developing TMDL's, implementing 
 18.30  restoration plans for impaired waters, and monitoring the 
 18.31  effectiveness of restoration; 
 18.32     (2) to support measures to prevent waters from becoming 
 18.33  impaired and to improve the quality of waters that are listed as 
 18.34  impaired but have no approved TMDL addressing the impairment; 
 18.35     (3) to provide grants and loans for wastewater and 
 18.36  stormwater treatment projects through the Public Facilities 
 19.1   Authority; 
 19.2      (4) to support the efforts of public agencies associated 
 19.3   with individual sewage treatment systems and financial 
 19.4   assistance for upgrading and replacing the systems; and 
 19.5      (5) to provide funds to state agencies to carry out their 
 19.6   responsibilities under this chapter. 
 19.7      Sec. 10.  Minnesota Statutes 2004, section 116.182, 
 19.8   subdivision 2, is amended to read: 
 19.9      Subd. 2.  [APPLICABILITY.] This section governs the 
 19.10  commissioner's certification of projects seeking financial 
 19.11  assistance under section 103F.725, subdivision 1a, 446A.07, or 
 19.12  446A.072, or 446A.075. 
 19.13     Sec. 11.  [446A.073] [CLEAN WATER LEGACY PHOSPHORUS 
 19.14  REDUCTION GRANTS.] 
 19.15     Subdivision 1.  [CREATION OF FUND.] The authority shall 
 19.16  establish a clean water legacy capital improvement fund and 
 19.17  shall make grants from the fund as provided in this section. 
 19.18     Subd. 2.  [GRANTS.] The authority shall award grants from 
 19.19  the clean water legacy capital improvement fund to governmental 
 19.20  units for the capital costs of wastewater treatment facility 
 19.21  projects or a portion thereof that will reduce the discharge of 
 19.22  total phosphorus from the facility to one milligram per liter or 
 19.23  less.  A project is eligible for a grant if it meets the 
 19.24  following requirements: 
 19.25     (1) the applicable phosphorus discharge limit is 
 19.26  incorporated in a permit issued by the agency for the wastewater 
 19.27  treatment facility on or after March 28, 2000, or the grantee 
 19.28  agrees to comply with the applicable limit as a condition of 
 19.29  receiving the grant; 
 19.30     (2) the governmental unit has submitted a facilities plan 
 19.31  for the project to the agency and a grant application to the 
 19.32  authority on a form prescribed by the authority; and 
 19.33     (3) the agency has approved the application and facilities 
 19.34  plan, and certified the eligible costs for the project to the 
 19.35  authority. 
 19.36     Subd. 3.  [ELIGIBLE CAPITAL COSTS.] Eligible capital costs 
 20.1   for phosphorus reduction grants under subdivision 4, paragraph 
 20.2   (a), include the as-bid construction costs and engineering 
 20.3   planning and design costs.  Eligible capital costs for 
 20.4   phosphorus reduction grants under subdivision 4, paragraph (b), 
 20.5   include the final, incurred construction, engineering, planning, 
 20.6   and design costs. 
 20.7      Subd. 4.  [GRANT AMOUNTS AND PRIORITIES.] (a) Priority must 
 20.8   be given to projects that start construction on or after July 1, 
 20.9   2005.  If a facility's plan for a project is approved by the 
 20.10  agency before July 1, 2009, the amount of the grant is 75 
 20.11  percent of the eligible capital cost of the project.  If a 
 20.12  facility's plan for a project is approved by the agency on or 
 20.13  after July 1, 2009, the amount of the grant is 50 percent of the 
 20.14  eligible capital cost of the project.  Priority in awarding 
 20.15  grants under this paragraph must be based on the date of 
 20.16  approval of the facility's plan for the project. 
 20.17     (b) Projects that meet the eligibility requirements in 
 20.18  subdivision 2 and have started construction before July 1, 2005, 
 20.19  are eligible for grants to reimburse up to 75 percent of the 
 20.20  eligible capital cost of the project, less any amounts 
 20.21  previously received in grants from other sources.  Application 
 20.22  for a grant under this paragraph must be submitted to the agency 
 20.23  no later than June 30, 2007.  Priority for award of grants under 
 20.24  this paragraph must be based on the date of agency approval of 
 20.25  the application for the grant. 
 20.26     (c) In each fiscal year that money is available for grants, 
 20.27  the authority shall first award grants under paragraph (a) to 
 20.28  projects that met the eligibility requirements of subdivision 2 
 20.29  by May 1 of that year.  The authority shall use any remaining 
 20.30  money available that year to award grants under paragraph (b).  
 20.31  Grants that have been approved but not awarded in a previous 
 20.32  fiscal year carry over and must be awarded in subsequent fiscal 
 20.33  years in accordance with the priorities in this paragraph. 
 20.34     (d) Disbursements of grants under this section by the 
 20.35  authority to recipients must be made for eligible project costs 
 20.36  as incurred by the recipients, and must be made by the authority 
 21.1   in accordance with the project financing agreement and 
 21.2   applicable state law. 
 21.3      Subd. 5.  [FEES.] The authority may charge the grant 
 21.4   recipient a fee for its administrative costs not to exceed 
 21.5   one-half of one percent of the grant amount, to be paid upon 
 21.6   execution of the grant agreement. 
 21.7      Sec. 12.  [446A.074] [SMALL COMMUNITY WASTEWATER TREATMENT 
 21.8   LOAN PROGRAM.] 
 21.9      Subdivision 1.  [CREATION OF FUND.] The authority shall 
 21.10  establish a small community wastewater treatment fund and shall 
 21.11  make loans from the fund as provided in this section.  Money in 
 21.12  the fund is annually appropriated to the authority and does not 
 21.13  lapse.  The fund shall be credited with all loan repayments and 
 21.14  investment income from the fund, and servicing fees assessed 
 21.15  under section 446A.04, subdivision 5.  The authority shall 
 21.16  manage and administer the small community wastewater treatment 
 21.17  fund, and for these purposes, may exercise all powers provided 
 21.18  in this chapter.  
 21.19     Subd. 2.  [LOANS.] The authority shall award loans to 
 21.20  governmental units from the small community wastewater treatment 
 21.21  fund for projects to replace noncomplying individual sewage 
 21.22  treatment systems with a community wastewater treatment system 
 21.23  or systems meeting the requirements of section 115.55.  A 
 21.24  governmental unit receiving a loan from the fund shall own the 
 21.25  community wastewater treatment systems built under the program 
 21.26  and shall be responsible, either directly or through a contract 
 21.27  with a private vendor, for all inspections, maintenance, and 
 21.28  repairs necessary to assure proper operation of the systems. 
 21.29     Subd. 3.  [PROJECT PRIORITY LIST.] Governmental units 
 21.30  seeking loans from the small community wastewater treatment loan 
 21.31  program shall first submit a project proposal to the agency.  A 
 21.32  project proposal shall include a compliance determination for 
 21.33  all individual sewage treatment systems in the project area.  
 21.34  The agency shall rank project proposals on its project priority 
 21.35  list used for the water pollution control revolving fund under 
 21.36  section 446A.07. 
 22.1      Subd. 4.  [LOAN APPLICATIONS.] Governmental units with 
 22.2   projects on the project priority list shall submit applications 
 22.3   to the authority on forms prescribed by the authority.  The 
 22.4   application shall include: 
 22.5      (1) a list of the individual sewage treatment systems 
 22.6   proposed to be replaced over a period of up to three years; 
 22.7      (2) a project schedule and cost estimate for each year of 
 22.8   the project; 
 22.9      (3) a financing plan for repayment of the loan; and 
 22.10     (4) a management plan providing for the inspection, 
 22.11  maintenance, and repairs necessary to assure proper operation of 
 22.12  the systems. 
 22.13     Subd. 5.  [LOAN AWARDS.] The authority shall award loans to 
 22.14  governmental units with approved loan applications based on 
 22.15  their ranking on the agency's project priority list.  The loan 
 22.16  amount shall be based on the estimated project costs for the 
 22.17  portion of the project expected to be completed within one year, 
 22.18  up to an annual maximum of $500,000.  For projects expected to 
 22.19  take more than one year to complete, the authority may make a 
 22.20  multiyear commitment for a period not to exceed three years, 
 22.21  contingent on the future availability of funds.  Each year of a 
 22.22  multiyear commitment must be funded by a separate loan agreement 
 22.23  meeting the terms and conditions in subdivision 6.  A 
 22.24  governmental unit receiving a loan under a multiyear commitment 
 22.25  shall have priority for additional loan funds in subsequent 
 22.26  years. 
 22.27     Subd. 6.  [LOAN TERMS AND CONDITIONS.] Loans from the small 
 22.28  community wastewater treatment fund shall comply with the 
 22.29  following terms and conditions: 
 22.30     (1) principal and interest payments must begin no later 
 22.31  than two years after the loan is awarded; 
 22.32     (2) loans shall carry an interest rate of one percent; 
 22.33     (3) loans shall be fully amortized within ten years of the 
 22.34  first scheduled payment or, if the loan amount exceeds $10,000 
 22.35  per household, shall be fully amortized within 20 years but not 
 22.36  to exceed the expected design life of the system; 
 23.1      (4) a governmental unit receiving a loan must establish a 
 23.2   dedicated source or sources of revenues for repayment of the 
 23.3   loan and must issue a general obligation note to the authority 
 23.4   for the full amount of the loan; and 
 23.5      (5) each property owner to be served by a community 
 23.6   wastewater treatment system under this program must provide an 
 23.7   easement to the governmental unit to allow access to the system 
 23.8   for management and repairs. 
 23.9      Subd. 7.  [SPECIAL ASSESSMENT DEFERRAL.] (a) A governmental 
 23.10  unit receiving a loan under this section that levies special 
 23.11  assessments to repay the loan may defer payment of the 
 23.12  assessments under the provisions of sections 435.193 to 435.195. 
 23.13     (b) A governmental unit that defers payment of special 
 23.14  assessments for one or more properties under paragraph (a) may 
 23.15  request deferral of that portion of the debt service on its 
 23.16  loan, and the authority shall accept appropriate amendments to 
 23.17  the general obligation note of the governmental unit.  If 
 23.18  special assessment payments are later received from properties 
 23.19  that received a deferral, the funds received shall be paid to 
 23.20  the authority with the next scheduled loan payment. 
 23.21     Subd. 8.  [ELIGIBLE COSTS.] Eligible costs for small 
 23.22  community wastewater treatment loans shall include the costs of 
 23.23  planning, design, construction, legal fees, administration, and 
 23.24  land acquisition. 
 23.25     Subd. 9.  [DISBURSEMENTS.] Loan disbursements by the 
 23.26  authority under this section must be made for eligible project 
 23.27  costs as incurred by the recipients, and must be made in 
 23.28  accordance with the project loan agreement and applicable state 
 23.29  law. 
 23.30     Subd. 10.  [AUDITS.] A governmental unit receiving a loan 
 23.31  under this section must annually provide to the authority for 
 23.32  the term of the loan a copy of its annual independent audit or, 
 23.33  if the governmental unit is not required to prepare an 
 23.34  independent audit, a copy of the annual financial reporting form 
 23.35  it provides to the state auditor. 
 23.36     Sec. 13.  [446A.075] [TOTAL MAXIMUM DAILY LOAD GRANTS.] 
 24.1      Subdivision 1.  [PROGRAM ESTABLISHED.] When money is 
 24.2   appropriated for grants under this program, the authority shall 
 24.3   make grants to municipalities to cover up to one-half the cost 
 24.4   of wastewater treatment or stormwater projects made necessary by 
 24.5   wasteload reductions under total maximum daily load plans 
 24.6   required by section 303(d) of the federal Clean Water Act, 
 24.7   United States Code, title 33, section 1313(d). 
 24.8      Subd. 2.  [GRANT APPLICATION.] Application for a grant 
 24.9   shall be made to the authority on forms prescribed by the 
 24.10  authority for the total maximum daily load grant program, with 
 24.11  additional information as required by the authority.  In 
 24.12  accordance with section 116.182, the Pollution Control Agency 
 24.13  shall: 
 24.14     (1) calculate the essential project component percentage, 
 24.15  which shall be multiplied by the total project cost to determine 
 24.16  the eligible project cost; and 
 24.17     (2) review and certify approved projects to the authority. 
 24.18     Subd. 3.  [PROJECT PRIORITIES.] When money is appropriated 
 24.19  for grants under this program, the authority shall reserve money 
 24.20  for projects in the order that their total maximum daily load 
 24.21  plan was approved by the United States Environmental Protection 
 24.22  Agency and in an amount based on their most recent cost 
 24.23  estimates submitted to the authority or the as-bid costs, 
 24.24  whichever is less. 
 24.25     Subd. 4.  [GRANT APPROVAL.] The authority shall make a 
 24.26  grant to a municipality, as defined in section 116.182, 
 24.27  subdivision 1, only after: 
 24.28     (1) the commissioner of the Minnesota Pollution Control 
 24.29  Agency has certified to the United States Environmental 
 24.30  Protection Agency a total maximum daily load plan for identified 
 24.31  waters of this state that includes a point source wasteload 
 24.32  allocation; 
 24.33     (2) the Environmental Protection Agency has approved the 
 24.34  plan; 
 24.35     (3) a municipality affected by the plan has estimated the 
 24.36  cost to it of wastewater treatment or stormwater projects 
 25.1   necessary to comply with the point source wasteload allocation; 
 25.2      (4) the Pollution Control Agency has approved the cost 
 25.3   estimate; and 
 25.4      (5) the authority has determined that the additional 
 25.5   financing necessary to complete the project has been committed 
 25.6   from other sources. 
 25.7      Subd. 5.  [GRANT DISBURSEMENT.] Disbursement of a grant 
 25.8   shall be made for eligible project costs as incurred by the 
 25.9   municipality and in accordance with a project financing 
 25.10  agreement and applicable state and federal laws and rules 
 25.11  governing the payments. 
 25.12     Sec. 14.  [APPROPRIATIONS.] 
 25.13     Subdivision 1.  [GENERAL PROVISIONS.] The appropriations in 
 25.14  this section are from the environmental fund and are available 
 25.15  for the fiscal years ending June 30, 2006, and June 30, 2007.  
 25.16  Unless otherwise specified in this section, these appropriations 
 25.17  do not cancel and remain available until June 30, 2007.  
 25.18  Appropriations in this section that are encumbered under 
 25.19  contract, including grant contract, on or before June 30, 2007, 
 25.20  are available until June 30, 2009. 
 25.21     Subd. 2.  [DEPARTMENT OF REVENUE; FEE COLLECTION 
 25.22  COSTS.] $38,000 in fiscal year 2006 and $31,000 in fiscal year 
 25.23  2007 are appropriated to the Department of Revenue to pay the 
 25.24  costs of collection and administration of the clean water fees 
 25.25  imposed in Minnesota Statutes, section 114D.40. 
 25.26     Subd. 3.  [POLLUTION CONTROL AGENCY.] The following amounts 
 25.27  are appropriated to the Pollution Control Agency for the 
 25.28  purposes stated: 
 25.29     (1) $1,000,000 in fiscal year 2006 is to assist counties in 
 25.30  developing the list required under Minnesota Statutes, section 
 25.31  114D.40, subdivision 4, paragraph (e), of persons subject to 
 25.32  clean water fees under Minnesota Statutes, section 114D.40, 
 25.33  subdivision 3, paragraphs (f) and (g); 
 25.34     (2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal 
 25.35  year 2007 are for statewide assessment of surface water quality 
 25.36  and trends; of these amounts, up to $1,474,000 in fiscal year 
 26.1   2006 and $3,256,600 in fiscal year 2007 are available for grants 
 26.2   or contracts to support citizen monitoring of surface waters; 
 26.3   and 
 26.4      (3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal 
 26.5   year 2007 are to develop TMDL's for waters listed on the United 
 26.6   States Environmental Protection Agency approved 2004 impaired 
 26.7   waters list; of this appropriation, up to $384,950 in fiscal 
 26.8   year 2006 and $1,118,750 in fiscal year 2007 are available for 
 26.9   grants or contracts to develop TMDL's. 
 26.10     Subd. 4.  [AGRICULTURE DEPARTMENT.] The following amounts 
 26.11  are appropriated to the Department of Agriculture for the 
 26.12  purposes stated: 
 26.13     (1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal 
 26.14  year 2007 are for agricultural best management practices 
 26.15  low-interest loans to producers and rural landowners; of these 
 26.16  amounts, $200,000 in fiscal year 2006 and $2,100,000 in fiscal 
 26.17  year 2007 are available for pass-through to local governments 
 26.18  and lenders for low-interest loans; 
 26.19     (2) $350,000 in fiscal year 2006 and $800,000 in fiscal 
 26.20  year 2007 are to expand technical assistance to producers and 
 26.21  conservation professionals on nutrient and pasture management; 
 26.22  target practices to sources of water impairments; coordinate 
 26.23  federal and state farm conservation programs to fully utilize 
 26.24  federal conservation funds; and expand conservation planning 
 26.25  assistance for producers; of these amounts, $50,000 in fiscal 
 26.26  year 2006 and $210,000 in fiscal year 2007 are available for 
 26.27  grants or contracts to develop nutrient and conservation 
 26.28  planning assistance information materials; and 
 26.29     (3) $100,000 in fiscal year 2006 and $800,000 in fiscal 
 26.30  year 2007 are for research, evaluation, and effectiveness 
 26.31  monitoring of agricultural practices in restoring impaired 
 26.32  waters; of these amounts, $600,000 in fiscal year 2007 is 
 26.33  available for grants or contracts for research, evaluations, and 
 26.34  effectiveness monitoring of agricultural practices in restoring 
 26.35  impaired waters, including on-farm demonstrations. 
 26.36     Subd. 5.  [BOARD OF WATER AND SOIL RESOURCES.] The 
 27.1   following amounts are appropriated to the Board of Water and 
 27.2   Soil Resources for restoration and prevention actions as 
 27.3   described in Minnesota Statutes, section 114D.20, subdivisions 6 
 27.4   and 7: 
 27.5      (1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal 
 27.6   year 2007 are for targeted nonpoint restoration cost-share and 
 27.7   incentive payments; of these amounts, up to $450,000 in fiscal 
 27.8   year 2006 and $5,450,000 in fiscal year 2007 are available for 
 27.9   grants to soil and water conservation districts through the 
 27.10  state cost-share program authorized under Minnesota Statutes, 
 27.11  section 103C.501; 
 27.12     (2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal 
 27.13  year 2007 are for targeted nonpoint restoration technical and 
 27.14  engineering assistance activities; of these amounts, up to 
 27.15  $412,000 in fiscal year 2006 and $3,250,000 in fiscal year 2007 
 27.16  are available for grants to soil and water conservation 
 27.17  districts, watershed management organizations, or counties to 
 27.18  support nonpoint restoration implementation activities; 
 27.19     (3) $200,000 in fiscal year 2007 is for reporting and 
 27.20  evaluation of applied soil and water conservation practices; 
 27.21     (4) $2,400,000 in fiscal year 2007 is for grants to 
 27.22  counties for implementation of county individual sewage 
 27.23  treatment systems programs through the local water resources 
 27.24  protection and management program under Minnesota Statutes, 
 27.25  section 103B.3369; 
 27.26     (5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal 
 27.27  year 2007 are for base and challenge grants to support nonpoint 
 27.28  source protection activities related to lake and river 
 27.29  protection and management through the local water resources 
 27.30  protection and management program under Minnesota Statutes, 
 27.31  section 103B.3369; and 
 27.32     (6) $2,400,000 in fiscal year 2007 is for grants to soil 
 27.33  and water conservation districts for streambank, stream channel, 
 27.34  lakeshore, and roadside protection and restoration projects 
 27.35  through the state-cost share program under Minnesota Statutes, 
 27.36  section 103C.501. 
 28.1      Subd. 6.  [DEPARTMENT OF NATURAL RESOURCES.] The following 
 28.2   amounts are appropriated to the Department of Natural Resources 
 28.3   for the purposes stated:  
 28.4      (1) $280,000 in fiscal year 2006 and $430,000 in fiscal 
 28.5   year 2007 are for statewide assessment of surface water quality 
 28.6   and trends; and 
 28.7      (2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal 
 28.8   year 2007 are for restoration of impaired waters and actions to 
 28.9   prevent waters from becoming impaired; of these amounts, up to 
 28.10  $1,700,000 in fiscal year 2007 is available for grants and 
 28.11  contracts for forest stewardship planning and implementation, 
 28.12  and for research and monitoring. 
 28.13     Subd. 7.  [PUBLIC FACILITIES AUTHORITY.] $4,400,000 in 
 28.14  fiscal year 2006 and $44,015,000 in fiscal year 2007 are 
 28.15  appropriated to the Public Facilities Authority; of these 
 28.16  amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in 
 28.17  fiscal year 2007 are to the clean water legacy capital 
 28.18  improvements fund for grants under Minnesota Statutes, section 
 28.19  446A.073; $4,582,000 in fiscal year 2007 is to the small 
 28.20  community wastewater treatment fund for loans under Minnesota 
 28.21  Statutes, section 446A.074; and $22,433,000 in fiscal year 2007 
 28.22  is to the water pollution control revolving fund under Minnesota 
 28.23  Statutes, section 446.07, for wastewater treatment and 
 28.24  stormwater projects, and $....... is for total maximum daily 
 28.25  load grants under Minnesota Statutes, section 446A.075.  Funds 
 28.26  appropriated under this subdivision do not cancel and are 
 28.27  available until expended. 
 28.28     Sec. 15.  [EFFECTIVE DATE.] 
 28.29     Sections 1 to 13 are effective the day following final 
 28.30  enactment.  Section 14 is effective July 1, 2005.