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             appropriating money; proposing coding for new law in 
  1.8             Minnesota Statutes chapter 446A; proposing coding for 
  1.9             new law as Minnesota Statutes, chapter 114D. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [114D.05] [CITATION.] 
  1.12     This chapter may be cited as the "Clean Water Legacy Act." 
  1.13     Sec. 2.  [114D.10] [LEGISLATIVE PURPOSE AND FINDINGS.] 
  1.14     Subdivision 1.  [PURPOSE.] The purpose of the Clean Water 
  1.15  Legacy Act is to protect, restore, and preserve the quality of 
  1.16  Minnesota's surface waters by providing authority, direction, 
  1.17  and resources to achieve and maintain water quality standards 
  1.18  for surface waters as required by section 303(d) of the federal 
  1.19  Clean Water Act, United States Code, title 42, section 1313(d), 
  1.20  and applicable federal regulations. 
  1.21     Subd. 2.  [FINDINGS.] The legislature finds that: 
  1.22     (1) there is a close link between protecting, restoring, 
  1.23  and preserving the quality of Minnesota's surface waters and the 
  1.24  ability to develop the state's economy, enhance its quality of 
  1.25  life, and protect its human and natural resources; 
  1.26     (2) achieving the state's water quality goals will require 
  1.27  long-term commitment and cooperation by all state and local 
  2.1   agencies, and other public and private organizations and 
  2.2   individuals, with responsibility and authority for water 
  2.3   management, planning, and protection; and 
  2.4      (3) all persons and organizations whose activities affect 
  2.5   the quality of waters, including point and nonpoint sources of 
  2.6   pollution, have a responsibility to participate in and support 
  2.7   efforts to achieve the state's water quality goals. 
  2.8      Sec. 3.  [114D.15] [DEFINITIONS.] 
  2.9      Subdivision 1.  [APPLICATION.] The definitions provided in 
  2.10  this section apply to the terms used in this chapter. 
  2.11     Subd. 2.  [CITIZEN MONITORING.] "Citizen monitoring" means 
  2.12  monitoring of surface water quality by individuals and 
  2.13  nongovernmental organizations that is consistent with Pollution 
  2.14  Control Agency guidance on monitoring procedures, quality 
  2.15  assurance protocols, and data management. 
  2.16     Subd. 3.  [CLEAN WATER COUNCIL.] "Clean Water Council" or 
  2.17  "council" means the Clean Water Council created pursuant to 
  2.18  section 114D.30, subdivision 1. 
  2.19     Subd. 4.  [FEDERAL TMDL REQUIREMENTS.] "Federal TMDL 
  2.20  requirements" means the requirements of section 303(d) of the 
  2.21  Clean Water Act, United States Code, title 42, section 1313(d), 
  2.22  and associated regulations and guidance. 
  2.23     Subd. 5.  [IMPAIRED WATER.] "Impaired water" means surface 
  2.24  water that does not meet applicable water quality standards. 
  2.25     Subd. 6.  [PUBLIC AGENCIES.] "Public agencies" means all 
  2.26  state agencies, political subdivisions, joint powers 
  2.27  organizations, and special purpose units of government with 
  2.28  authority, responsibility, or expertise in protecting, 
  2.29  restoring, or preserving the quality of surface waters, managing 
  2.30  or planning for surface waters and related lands, or financing 
  2.31  waters-related projects.  "Public agencies" also includes the 
  2.32  University of Minnesota and other public education institutions. 
  2.33     Subd. 7.  [RESTORATION.] "Restoration" means actions, 
  2.34  including effectiveness monitoring, that are taken to achieve 
  2.35  and maintain water quality standards for impaired waters in 
  2.36  accordance with a TMDL that has been approved by the United 
  3.1   States Environmental Protection Agency under federal TMDL 
  3.2   requirements. 
  3.3      Subd. 8.  [SURFACE WATERS.] "Surface waters" means waters 
  3.4   of the state as defined in section 115.01, subdivision 22, 
  3.5   excluding groundwater as defined in section 115.01, subdivision 
  3.6   6. 
  3.7      Subd. 9.  [THIRD-PARTY TMDL.] "Third-party TMDL" means a 
  3.8   TMDL that is developed by a qualified public agency other than 
  3.9   the Pollution Control Agency consistent with the goals, 
  3.10  policies, and priorities in section 114D.20. 
  3.11     Subd. 10.  [TOTAL MAXIMUM DAILY LOAD OR TMDL.] "Total 
  3.12  maximum daily load" or "TMDL" means a calculation of the maximum 
  3.13  amount of a pollutant that may be introduced into a surface 
  3.14  water and still ensure that applicable water quality standards 
  3.15  for that water are achieved and maintained.  A TMDL is the sum 
  3.16  of the pollutant load allocations for all sources of the 
  3.17  pollutant, including a load allocation for point sources, a load 
  3.18  allocation for nonpoint sources and natural background, a load 
  3.19  allocation for future growth of point and nonpoint sources, and 
  3.20  a margin of safety to account for uncertainty about the 
  3.21  relationship between pollutant loads and the quality of the 
  3.22  receiving surface water.  "Natural background" means 
  3.23  characteristics of the water body resulting from the 
  3.24  multiplicity of factors in nature, including climate and 
  3.25  ecosystem dynamics, that affect the physical, chemical, or 
  3.26  biological conditions in a water body, but does not include 
  3.27  measurable and distinguishable pollution that is attributable to 
  3.28  human activity or influence.  A TMDL must take into account 
  3.29  seasonal variations. 
  3.30     Subd. 11.  [WATER QUALITY STANDARDS.] "Water quality 
  3.31  standards" for Minnesota surface waters are found in Minnesota 
  3.32  Rules, chapters 7050 and 7052. 
  3.33     Sec. 4.  [114D.20] [IMPLEMENTATION; COORDINATION; GOALS; 
  3.34  POLICIES; AND PRIORITIES.] 
  3.35     Subdivision 1.  [COORDINATION AND COOPERATION.] In 
  3.36  implementing this chapter, public agencies shall take into 
  4.1   consideration the relevant provisions of local and other 
  4.2   applicable water management, conservation, land use, land 
  4.3   management, and development plans and programs.  Public agencies 
  4.4   with authority for local water management, conservation, land 
  4.5   use, land management, and development plans shall take into 
  4.6   consideration the manner in which their plans affect the 
  4.7   implementation of this chapter.  Public agencies shall identify 
  4.8   opportunities to participate and assist in the successful 
  4.9   implementation of this chapter, including the funding or 
  4.10  technical assistance needs, if any, that may be necessary.  In 
  4.11  implementing this chapter, public agencies shall endeavor to 
  4.12  engage the cooperation of organizations and individuals whose 
  4.13  activities affect the quality of surface waters, including point 
  4.14  and nonpoint sources of pollution, and who have authority and 
  4.15  responsibility for water management, planning, and protection.  
  4.16  To the extent practicable, public agencies shall endeavor to 
  4.17  enter into formal and informal agreements and arrangements with 
  4.18  federal agencies and departments to jointly utilize staff and 
  4.19  resources to deliver programs or conduct activities to achieve 
  4.20  the intent of this chapter, including efforts under the federal 
  4.21  Clean Water Act and other federal farm and soil and water 
  4.22  conservation programs. 
  4.23     Subd. 2.  [GOALS FOR IMPLEMENTATION.] The following goals 
  4.24  must guide the implementation of this chapter: 
  4.25     (1) to identify impaired waters in accordance with federal 
  4.26  TMDL requirements within ten years after the effective date of 
  4.27  this section and thereafter to ensure continuing evaluation of 
  4.28  surface waters for impairments; 
  4.29     (2) to submit TMDL's to the United States Environmental 
  4.30  Protection Agency for all impaired waters in a timely manner in 
  4.31  accordance with federal TMDL requirements; 
  4.32     (3) to set a reasonable time for implementing restoration 
  4.33  of each identified impaired water; 
  4.34     (4) to provide assistance and incentives to prevent waters 
  4.35  from becoming impaired and to improve the quality of waters that 
  4.36  are listed as impaired but do not have an approved TMDL 
  5.1   addressing the impairment; and 
  5.2      (5) to promptly seek the delisting of waters from the 
  5.3   impaired waters list when those waters are shown to achieve the 
  5.4   designated uses applicable to the waters. 
  5.5      Subd. 3.  [IMPLEMENTATION POLICIES.] The following policies 
  5.6   must guide the implementation of this chapter: 
  5.7      (1) develop regional and watershed TMDL's, and TMDL's for 
  5.8   multiple pollutants, where reasonable and feasible; 
  5.9      (2) maximize use of available organizational, technical, 
  5.10  and financial resources to perform sampling, monitoring, and 
  5.11  other activities to identify impaired waters, including use of 
  5.12  citizen monitoring; 
  5.13     (3) maximize opportunities for restoration of impaired 
  5.14  waters, by prioritizing and targeting of available programmatic, 
  5.15  financial, and technical resources and by providing additional 
  5.16  state resources to complement and leverage available resources; 
  5.17     (4) use existing regulatory authorities to achieve 
  5.18  restoration for point and nonpoint sources of pollution where 
  5.19  applicable, and promote the development and use of effective 
  5.20  nonregulatory measures to address pollution sources for which 
  5.21  regulations are not applicable; 
  5.22     (5) use restoration methods that have a demonstrated 
  5.23  effectiveness in reducing impairments and provide the greatest 
  5.24  long-term positive impact on water quality protection and 
  5.25  improvement and related conservation benefits while 
  5.26  incorporating innovative approaches on a case-by-case basis; 
  5.27     (6) identify for the legislature any innovative approaches 
  5.28  that may strengthen or complement existing programs; and 
  5.29     (7) identify and encourage implementation of measures to 
  5.30  prevent waters from becoming impaired and to improve the quality 
  5.31  of waters that are listed as impaired but have no approved TMDL 
  5.32  addressing the impairment using the best available data and 
  5.33  technology, and establish and report outcome-based performance 
  5.34  measures that monitor the progress and effectiveness of 
  5.35  protection and restoration measures. 
  5.36     Subd. 4.  [PRIORITIES FOR IDENTIFYING IMPAIRED WATERS.] The 
  6.1   Pollution Control Agency, in accordance with federal TMDL 
  6.2   requirements, shall set priorities for identifying impaired 
  6.3   waters, giving consideration to: 
  6.4      (1) waters where impairments would pose the greatest 
  6.5   potential risk to human or aquatic health; and 
  6.6      (2) waters where data developed through public agency or 
  6.7   citizen monitoring or other means provides evidence that an 
  6.8   impaired condition exists. 
  6.9      Subd. 5.  [PRIORITIES FOR PREPARATION OF TMDL'S.] The Clean 
  6.10  Water Council shall recommend priorities for scheduling and 
  6.11  preparing TMDL's taking into account the severity of the 
  6.12  impairment, the designated uses of those waters, and other 
  6.13  applicable federal TMDL requirements.  In recommending 
  6.14  priorities, the council shall also give consideration to waters 
  6.15  and watersheds: 
  6.16     (1) with impairments that pose the greatest potential risk 
  6.17  to human health; 
  6.18     (2) with impairments that pose the greatest potential risk 
  6.19  to threatened or endangered species; 
  6.20     (3) with impairments that pose the greatest potential risk 
  6.21  to aquatic health; 
  6.22     (4) where other public agencies and participating 
  6.23  organizations and individuals, especially local, basinwide, or 
  6.24  regional agencies or organizations, have demonstrated readiness 
  6.25  to assist in carrying out the responsibilities, including 
  6.26  availability and organization of human, technical, and financial 
  6.27  resources necessary to undertake the work; and 
  6.28     (5) where there is demonstrated coordination and 
  6.29  cooperation among cities, counties, watershed districts, and 
  6.30  soil and water conservation districts in planning and 
  6.31  implementation of activities that will assist in carrying out 
  6.32  the responsibilities. 
  6.33     Subd. 6.  [PRIORITIES FOR RESTORATION OF IMPAIRED 
  6.34  WATERS.] In implementing restoration of impaired waters, in 
  6.35  addition to the priority considerations in subdivision 5 the 
  6.36  Clean Water Council shall give priority in its recommendations 
  7.1   for restoration funding from the clean water legacy account to 
  7.2   restoration projects that: 
  7.3      (1) coordinate with and utilize existing local authorities 
  7.4   and infrastructure for implementation; 
  7.5      (2) can be implemented in whole or in part by providing 
  7.6   support for existing or ongoing restoration efforts; 
  7.7      (3) most effectively leverage other sources of restoration 
  7.8   funding, including federal, state, local, and private sources of 
  7.9   funds; 
  7.10     (4) show a high potential for early restoration and 
  7.11  delisting based upon data developed through public agency or 
  7.12  citizen monitoring or other means; and 
  7.13     (5) show a high potential for long-term water quality and 
  7.14  related conservation benefits. 
  7.15     Subd. 7.  [PRIORITIES FOR FUNDING PREVENTION ACTIONS.] The 
  7.16  Clean Water Council shall apply the priorities applicable under 
  7.17  subdivision 6, as far as practicable, when recommending 
  7.18  priorities for funding actions to prevent waters from becoming 
  7.19  impaired and to improve the quality of waters that are listed as 
  7.20  impaired but do not have an approved TMDL. 
  7.21     Sec. 5.  [114D.25] [ADMINISTRATION; POLLUTION CONTROL 
  7.22  AGENCY.] 
  7.23     Subdivision 1.  [GENERAL DUTIES AND AUTHORITIES.] (a) The 
  7.24  Pollution Control Agency, in accordance with federal TMDL 
  7.25  requirements, shall:  identify impaired waters and propose a 
  7.26  list of the waters for review and approval by the United States 
  7.27  Environmental Protection Agency; develop and approve TMDL's for 
  7.28  listed impaired waters and submit the approved TMDL's to the 
  7.29  United States Environmental Protection Agency for final 
  7.30  approval; and propose to delist waters from the United States 
  7.31  Environmental Protection Agency impaired waters list. 
  7.32     (b) A TMDL must include a statement of the facts and 
  7.33  scientific data supporting the TMDL and a list of potential 
  7.34  implementation options, including: 
  7.35     (1) a range of estimates of the cost of implementation of 
  7.36  the TMDL; and 
  8.1      (2) for point sources, the individual wasteload data and 
  8.2   the estimated cost of compliance addressed by the TMDL. 
  8.3   The implementation information does not need to be sent to the 
  8.4   United States Environmental Protection Agency for review. 
  8.5      Subd. 2.  [ADMINISTRATIVE PROCEDURES FOR TMDL 
  8.6   APPROVAL.] Before approving a TMDL, the agency shall give 
  8.7   written notice to the public of the proposed TMDL and provide a 
  8.8   30-day opportunity for submission of written comments.  The 
  8.9   agency shall distribute the notice in the same manner as a 
  8.10  notice of a proposed permit is distributed under agency rules.  
  8.11  The approval of a TMDL by the Pollution Control Agency is a 
  8.12  final decision of the agency under section 115.05, subdivision 
  8.13  11, clause (1), and is subject to the contested case procedures 
  8.14  of sections 14.57 to 14.62 in accordance with agency procedural 
  8.15  rules.  The agency shall not submit an approved TMDL to the 
  8.16  United States Environmental Protection Agency until the time for 
  8.17  commencing judicial review has run or the judicial review 
  8.18  process has been completed.  A TMDL is not subject to the 
  8.19  rulemaking requirements of chapter 14, including section 14.386. 
  8.20     Subd. 3.  [THIRD-PARTY TMDL DEVELOPMENT.] The Pollution 
  8.21  Control Agency may enter agreements with any qualified public 
  8.22  agency setting forth the terms and conditions under which that 
  8.23  entity is authorized to develop a third-party TMDL.  In 
  8.24  determining whether the public agency is qualified to develop a 
  8.25  third-party TMDL, the Pollution Control Agency shall consider 
  8.26  the technical and administrative qualifications of the public 
  8.27  agency and shall avoid any potential organizational conflict of 
  8.28  interest, as defined in section 16C.02, subdivision 10a, of the 
  8.29  public agency with respect to the development of the third-party 
  8.30  TMDL.  A third-party TMDL is subject to modification and 
  8.31  approval by the Pollution Control Agency, and must be approved 
  8.32  by the Pollution Control Agency before it is submitted to the 
  8.33  United States Environmental Protection Agency.  The Pollution 
  8.34  Control Agency shall consider authorizing the development of 
  8.35  third-party TMDL's consistent with the goals, policies, and 
  8.36  priorities determined under section 116.384. 
  9.1      Sec. 6.  [114D.30] [CLEAN WATER COUNCIL.] 
  9.2      Subdivision 1.  [CREATION; DUTIES.] A Clean Water Council 
  9.3   is created to advise on the administration and implementation of 
  9.4   this chapter, and foster coordination and cooperation as 
  9.5   described in section 114D.20, subdivision 1.  The council may 
  9.6   also advise on the development of appropriate processes for 
  9.7   expert scientific review as described in section 114D.35, 
  9.8   subdivision 2.  The Pollution Control Agency shall provide 
  9.9   administrative support for the council with the support of other 
  9.10  member agencies.  The members of the council shall elect a chair 
  9.11  from the nonagency members of the council. 
  9.12     Subd. 2.  [MEMBERSHIP; APPOINTMENT.] The commissioners of 
  9.13  natural resources, agriculture, and the Pollution Control 
  9.14  Agency, and the executive director of the Board of Water and 
  9.15  Soil Resources are the appointing authorities for the council.  
  9.16  Each appointing authority shall appoint one person from their 
  9.17  respective agency to serve as a member of the council.  The 
  9.18  appointing authorities, acting jointly, shall appoint 13 
  9.19  additional nonagency members of the council as follows: 
  9.20     (1) two members representing statewide farm organizations; 
  9.21     (2) two members representing business organizations; 
  9.22     (3) two members representing environmental organizations; 
  9.23     (4) one member representing soil and water conservation 
  9.24  districts; 
  9.25     (5) one member representing watershed districts; 
  9.26     (6) one member representing organizations focused on 
  9.27  improvement of Minnesota lakes or streams; 
  9.28     (7) one member representing an organization of county 
  9.29  governments; 
  9.30     (8) two members representing organizations of city 
  9.31  governments; and 
  9.32     (9) one member representing the Metropolitan Council 
  9.33  established under section 473.123. 
  9.34     Subd. 3.  [TERMS; COMPENSATION; REMOVAL.] The initial terms 
  9.35  of members representing state agencies and the Metropolitan 
  9.36  Council expire on the first Monday in January, 2007.  
 10.1   Thereafter, the terms of members representing the state agencies 
 10.2   and the Metropolitan Council are four years and are coterminous 
 10.3   with the governor.  The terms of other members of the council 
 10.4   shall be as provided in section 15.059, subdivision 2.  Members 
 10.5   may serve until their successors are appointed and qualify.  
 10.6   Compensation and removal of council members is as provided in 
 10.7   section 15.059, subdivisions 3 and 4.  A vacancy on the council 
 10.8   may be filled by the appointing authorities, as provided in 
 10.9   subdivision 1, for the remainder of the unexpired term. 
 10.10     Subd. 4.  [IMPLEMENTATION PLAN.] The Clean Water Council 
 10.11  shall prepare a plan for implementation of this chapter.  The 
 10.12  plan shall address general procedures and time frames for 
 10.13  implementing this chapter, and shall include a more specific 
 10.14  implementation work plan for the next fiscal biennium and a 
 10.15  framework for setting priorities to address impaired waters 
 10.16  consistent with section 114D.20, subdivisions 2 to 7.  The 
 10.17  council shall issue the first implementation plan under this 
 10.18  subdivision by December 1, 2005, and shall issue a revised work 
 10.19  plan by December 1 of each even-numbered year thereafter. 
 10.20     Subd. 5.  [RECOMMENDATIONS ON APPROPRIATION OF FUNDS.] The 
 10.21  Clean Water Council shall recommend to the governor the manner 
 10.22  in which money from the clean water legacy account should be 
 10.23  appropriated for the purposes identified in section 114D.45, 
 10.24  subdivision 3.  The council's recommendations must be consistent 
 10.25  with the purposes, policies, goals, and priorities in sections 
 10.26  114D.05 to 114D.35, and shall allocate adequate support and 
 10.27  resources to identify impaired waters, develop TMDL's, implement 
 10.28  restoration of impaired waters, and provide assistance and 
 10.29  incentives to prevent waters from becoming impaired and improve 
 10.30  the quality of waters which are listed as impaired but have no 
 10.31  approved TMDL. 
 10.32     Subd. 6.  [BIENNIAL REPORT TO LEGISLATURE.] By December 1 
 10.33  of each even-numbered year, the council shall submit a report to 
 10.34  the legislature on the activities for which money from the clean 
 10.35  water legacy account has been or will be spent for the current 
 10.36  biennium, the activities for which money from the account is 
 11.1   recommended to be spent in the next biennium, and the impact on 
 11.2   economic development of the implementation of the impaired 
 11.3   waters program.  The report due on December 1, 2014, must 
 11.4   include an evaluation of the progress made through June 30, 
 11.5   2014, in implementing this chapter, the need for funding of 
 11.6   future implementation of those sections, and recommendations for 
 11.7   the sources of funding. 
 11.8      Sec. 7.  [114D.35] [PUBLIC AND STAKEHOLDER PARTICIPATION; 
 11.9   SCIENTIFIC REVIEW; EDUCATION.] 
 11.10     Subdivision 1.  [PUBLIC AND STAKEHOLDER PARTICIPATION.] 
 11.11  Public agencies involved in the implementation of this chapter 
 11.12  shall encourage participation by the public and stakeholders, 
 11.13  including local citizens, landowners and managers, and public 
 11.14  and private organizations, in the identification of impaired 
 11.15  waters, in developing TMDL's, and in planning and implementing 
 11.16  restoration of impaired waters.  In particular, the Pollution 
 11.17  Control Agency shall make reasonable efforts to provide timely 
 11.18  information to the public and to stakeholders about impaired 
 11.19  waters that have been identified by the agency.  The agency 
 11.20  shall seek broad and early public and stakeholder participation 
 11.21  in scoping the activities necessary to develop a TMDL, including 
 11.22  the scientific models, methods, and approaches to be used in 
 11.23  TMDL development, and to implement restoration pursuant to 
 11.24  section 114D.15, subdivision 7. 
 11.25     Subd. 2.  [EXPERT SCIENTIFIC ADVICE.] The Clean Water 
 11.26  Council and public agencies shall make use of available 
 11.27  expertise from educational, research, and technical 
 11.28  organizations, including the University of Minnesota and other 
 11.29  higher education institutions, to provide appropriate 
 11.30  independent expert advice on models, methods, and approaches 
 11.31  used in identifying impaired waters, developing TMDL's, and 
 11.32  implementing prevention and restoration. 
 11.33     Subd. 3.  [EDUCATION.] The Clean Water Council shall 
 11.34  develop strategies for informing, educating, and encouraging the 
 11.35  participation of citizens, stakeholders, and others regarding 
 11.36  the identification of impaired waters, development of TMDL's, 
 12.1   and development and implementation of restoration for impaired 
 12.2   waters.  Public agencies shall be responsible for implementing 
 12.3   the strategies. 
 12.4      Sec. 8.  [114D.40] [CLEAN WATER FEES.] 
 12.5      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 12.6   subdivision apply to the terms used in this section. 
 12.7      (b) "Average daily discharge or application limitation" 
 12.8   means the highest allowable average of daily discharge or land 
 12.9   application during a calendar day or any 24-hour period that 
 12.10  reasonably represents the discharge during the calendar day for 
 12.11  the purposes of sampling, calculated as the sum of all daily 
 12.12  discharges or land applications measured during a day, divided 
 12.13  by the number of daily discharges or land applications during 
 12.14  that day. 
 12.15     (c) "Effluent flow" means the flow of domestic wastewater 
 12.16  from a residential dwelling or nonresidential establishment.  
 12.17  The rate of water usage by a residential dwelling or 
 12.18  nonresidential establishment must be substituted for the 
 12.19  effluent flow if effluent flow from the residential dwelling or 
 12.20  nonresidential establishment is not measured. 
 12.21     (d) "Fee collection authority" means a county, the 
 12.22  Pollution Control Agency, or a public agency with authority to 
 12.23  collect fees and charges for sewer services provided by a 
 12.24  publicly owned treatment works. 
 12.25     (e) "Individual sewage treatment system" means a sewage 
 12.26  treatment system, or part thereof, that is regulated by the 
 12.27  state or its political subdivisions, and which serves a 
 12.28  residential dwelling, or nonresidential establishment, or group 
 12.29  thereof, using sewage tanks followed by soil treatment and 
 12.30  disposal or using advanced treatment devices that discharge 
 12.31  below final grade.  "Individual sewage treatment system" also 
 12.32  includes sewage holding tanks and privies. 
 12.33     (f) "Nonresidential establishment" means a structure or 
 12.34  portion of a structure that is not a residential dwelling. 
 12.35     (g) "Publicly owned treatment works" means a device or 
 12.36  system used in the treatment, recycling, or reclamation of 
 13.1   municipal sewage or liquid industrial waste that is owned by the 
 13.2   state, a political subdivision, sanitary district, or other 
 13.3   public organization established under state law and which relies 
 13.4   primarily on wastewater treatment systems other than individual 
 13.5   sewage treatment systems. 
 13.6      (h) "Residential dwelling" means a room or group of rooms 
 13.7   used by an individual, family, or other group as living quarters 
 13.8   which includes facilities for sleeping, eating, cooking, and 
 13.9   sanitation.  "Residential dwelling" includes apartments, 
 13.10  condominiums, cooperatives, attached and detached dwellings, 
 13.11  mobile homes, seasonal or recreational dwellings, or a dwelling 
 13.12  in which a resident of that dwelling engages in a business or 
 13.13  employment.  A farm that includes buildings is treated as a 
 13.14  residential dwelling.  "Residential dwelling" does not include: 
 13.15     (1) hotels, motels, resorts, boarding houses, clubs, 
 13.16  hospitals, nursing homes, dormitories, schools, colleges, or 
 13.17  similar institutional or transient facilities; or 
 13.18     (2) any structure containing not more than two residential 
 13.19  dwelling units that receives a single bill for sewer services 
 13.20  that is combined with one or more nonresidential establishments. 
 13.21     Subd. 2.  [ASSESSMENT OF CLEAN WATER FEES.] A clean water 
 13.22  fee is imposed as provided in subdivision 3 on all discharges of 
 13.23  domestic and industrial wastewater to sanitary sewer systems; 
 13.24  wastewater treatment plants, facilities, or systems; individual 
 13.25  sewage treatment systems; and other systems. 
 13.26     Subd. 3.  [FEE AMOUNTS.] (a) Beginning January 1, 2006, the 
 13.27  amounts of the clean water fees imposed under this section are 
 13.28  as provided in this subdivision. 
 13.29     (b) For discharges to sanitary sewer systems served by a 
 13.30  publicly owned treatment works, the clean water fees are as 
 13.31  follows: 
 13.32     (1) for each residential dwelling that receives a separate 
 13.33  bill for service and contains not more than two residential 
 13.34  dwelling units, $36 per year; 
 13.35     (2) for a structure that contains more than two residential 
 13.36  dwelling units that do not receive separate bills for service, 
 14.1   clean water fees must be calculated as follows: 
 14.2      (i) $36 per year for each residential dwelling unit in the 
 14.3   structure; and 
 14.4      (ii) any nonresidential establishment which is billed 
 14.5   together with the residential dwelling units is subject to a 
 14.6   clean water fee on that portion of the effluent flow for the 
 14.7   structure that is attributable to that nonresidential 
 14.8   establishment, and the fee must be calculated based on effluent 
 14.9   flows as provided in clause (3); and 
 14.10     (3) for each nonresidential establishment that receives a 
 14.11  separate bill for service, the annual fee is as follows: 
 14.12     (i) if average effluent flow is less than 10,000 gallons 
 14.13  per day, $....... in 2006, $....... in 2007, $....... in 2008, 
 14.14  and $....... in 2009 and thereafter; 
 14.15     (ii) if average effluent flow is 10,000 gallons per day or 
 14.16  greater, but less than 100,000 gallons per day, $....... in 
 14.17  2006, $....... in 2007, $....... in 2008, and $....... in 2009 
 14.18  and thereafter; and 
 14.19     (iii) if average effluent flow is 100,000 gallons per day 
 14.20  or greater, $....... in 2006, $....... in 2007, $....... in 
 14.21  2008, and $....... in 2009 and thereafter. 
 14.22     (c) Except as provided in paragraph (d), for discharges 
 14.23  from wastewater treatment facilities, other than publicly owned 
 14.24  treatment works, that are required to obtain a national 
 14.25  pollution discharge elimination system or state disposal system 
 14.26  permit, the annual fee is as follows: 
 14.27     (1) for permits authorizing an average daily discharge or 
 14.28  land application limitation of less than 10,000 gallons on an 
 14.29  annualized basis, $....... in 2006, $....... in 2007, $....... 
 14.30  in 2008, and $....... in 2009 and thereafter; 
 14.31     (2) for permits authorizing an average daily discharge or 
 14.32  land application limitation of 10,000 gallons per day or 
 14.33  greater, but less than 100,000 gallons per day, $....... in 
 14.34  2006, $....... in 2007, $....... in 2008, and $....... in 2009 
 14.35  and thereafter; and 
 14.36     (3) for permits authorizing an average daily discharge or 
 15.1   land application limitation of 100,000 gallons per day or 
 15.2   greater, $....... in 2006, $....... in 2007, $....... in 2008, 
 15.3   and $....... in 2009 and thereafter. 
 15.4      (d) A clean water fee must not be imposed under paragraph 
 15.5   (c), on discharges from a facility that operates under a general 
 15.6   permit issued by the agency. 
 15.7      (e) For discharges to domestic wastewater treatment systems 
 15.8   permitted by the Pollution Control Agency, excluding publicly 
 15.9   owned treatment works, the fee is $36 per year for each 
 15.10  residential dwelling and nonresidential establishment that 
 15.11  discharges to the systems.  No single residential unit or 
 15.12  nonresidential establishment may be required to pay more than 
 15.13  one clean water fee under this paragraph. 
 15.14     (f) For individual sewage treatment systems not permitted 
 15.15  by the Pollution Control Agency, the fee is $36 per year for 
 15.16  each residential dwelling and nonresidential establishment 
 15.17  served by the system.  No single residential unit or 
 15.18  nonresidential establishment may be required to pay more than 
 15.19  one clean water fee under this paragraph. 
 15.20     (g) For any wastewater system not described in paragraphs 
 15.21  (b) to (f), that accepts and discharges untreated or partially 
 15.22  treated wastewater, the fee is $36 per year for each residential 
 15.23  dwelling and nonresidential establishment that discharges to the 
 15.24  system.  
 15.25     (h) Any single residential unit or nonresidential 
 15.26  establishment that would be subject to payment of a clean water 
 15.27  fee under both paragraphs (f) and (g) may only be required to 
 15.28  pay the clean water fee under paragraph (e). 
 15.29     Subd. 4.  [COLLECTION AND ENFORCEMENT.] (a) Fees imposed on 
 15.30  discharges to sanitary sewer systems served by publicly owned 
 15.31  treatment works must be collected by the public agency that 
 15.32  collects fees or charges from the users of that service.  The 
 15.33  fees must be collected at the same time and with the same 
 15.34  frequency as fees or charges for service are collected.  The 
 15.35  collecting entity may enforce payment of the fees using the same 
 15.36  enforcement authority applicable to sewer service charges. 
 16.1      (b) Fees imposed under subdivision 3, paragraphs (c) and 
 16.2   (e), must be collected by the Pollution Control Agency from the 
 16.3   permittees for the facilities or systems.  The Pollution Control 
 16.4   Agency may enforce payment of the fees using the same 
 16.5   enforcement authority applicable to permit fees. 
 16.6      (c) Fees imposed under subdivision 3, paragraphs (f) and 
 16.7   (g), must be collected by each county, from the owners of the 
 16.8   residential dwellings or nonresidential establishments subject 
 16.9   to the fee that are located in the county.  A county shall 
 16.10  collect the fees at least once per calendar year, but may 
 16.11  collect the fees more frequently.  If fees are collected 
 16.12  annually, a county shall require payment of the fees by not 
 16.13  later than February 1 following the calendar year for which the 
 16.14  fee is imposed.  The county shall determine that manner in which 
 16.15  the fees are collected.  Each county shall enact and enforce an 
 16.16  appropriate ordinance to enforce payment of the fees. 
 16.17     (d) By August 15, 2005, a county shall identify and develop 
 16.18  a list of all persons subject to the fees under subdivision 3, 
 16.19  paragraphs (f) and (g), located in that county.  A county shall 
 16.20  annually update the list by August 15 of each year. 
 16.21     (e) A fee collection authority shall exempt a person from 
 16.22  payment of the clean water fee for a discharge of wastewater 
 16.23  from a residential dwelling if the fee collection authority 
 16.24  determines that the person meets any of the criteria for 
 16.25  eligibility under the telephone assistance plan established 
 16.26  under section 237.70, or that the person is receiving telephone 
 16.27  assistance under that plan.  The Pollution Control Agency shall 
 16.28  create a form that fee collection authorities shall use to 
 16.29  determine eligibility for exemption under this paragraph. 
 16.30     (f) Any statement, invoice, or other document used to 
 16.31  collect the fees under this subdivision must clearly identify 
 16.32  the fee as the "Minnesota Clean Water Fee." 
 16.33     Subd. 5.  [PAYMENT TO COMMISSIONER OF REVENUE; DEPOSIT.] (a)
 16.34  A fee collection authority shall remit all fees collected under 
 16.35  this section, less the costs to collect the fees, not to exceed 
 16.36  five percent of the total collected, to the commissioner of 
 17.1   revenue.  The fees must be remitted in a manner prescribed by 
 17.2   the commissioner.  Amounts collected during the previous 
 17.3   calendar quarter must be remitted to the commissioner on April 
 17.4   30, July 31, October 31, and January 31.  In addition to the 
 17.5   costs of collecting the fees, a fee collection authority may 
 17.6   retain from fees collected for calendar year 2006 the costs to 
 17.7   develop methods and procedures for collecting the clean water 
 17.8   fees. 
 17.9      (b) The commissioner of revenue shall deposit all clean 
 17.10  water fees remitted by fee collection authorities in the clean 
 17.11  water legacy account. 
 17.12     (c) The assessment, audit, refund, penalty, interest, 
 17.13  enforcement, collection remedies, appeal, and administrative 
 17.14  provisions of chapters 270 and 289A that are applicable to fees 
 17.15  imposed under chapter 297A apply to the fees imposed by this 
 17.16  section. 
 17.17     Subd. 6.  [EXPIRATION.] This section expires on December 
 17.18  31, 2015. 
 17.19     Sec. 9.  [114D.45] [CLEAN WATER LEGACY ACCOUNT.] 
 17.20     Subdivision 1.  [CREATION.] The clean water legacy account 
 17.21  is created as an account in the environmental fund.  Money in 
 17.22  the account must be made available for the implementation of 
 17.23  this chapter and sections 446A.073 and 446A.074, without 
 17.24  supplanting or taking the place of any other funds which are 
 17.25  currently available or may become available from any other 
 17.26  source, whether federal, state, local, or private, for 
 17.27  implementation of those sections. 
 17.28     Subd. 2.  [SOURCES OF REVENUE.] The following revenues must 
 17.29  be deposited in the clean water legacy account: 
 17.30     (1) the revenue from the clean water fees collected under 
 17.31  section 114D.40; and 
 17.32     (2) interest accrued on the account. 
 17.33     Subd. 3.  [PURPOSES.] Subject to appropriation by the 
 17.34  legislature, the clean water legacy account may be spent for the 
 17.35  following purposes: 
 17.36     (1) to provide grants, loans, and technical assistance to 
 18.1   public agencies and others who are participating in the process 
 18.2   of identifying impaired waters, developing TMDL's, implementing 
 18.3   restoration plans for impaired waters, and monitoring the 
 18.4   effectiveness of restoration; 
 18.5      (2) to support measures to prevent waters from becoming 
 18.6   impaired and to improve the quality of waters that are listed as 
 18.7   impaired but have no approved TMDL addressing the impairment; 
 18.8      (3) to provide grants and loans for wastewater and storm 
 18.9   water treatment projects through the Public Facilities 
 18.10  Authority; 
 18.11     (4) to support the efforts of public agencies associated 
 18.12  with individual sewage treatment systems and financial 
 18.13  assistance for upgrading and replacing the systems; and 
 18.14     (5) to provide funds to state agencies to carry out their 
 18.15  responsibilities under this chapter. 
 18.16     Sec. 10.  [446A.073] [CLEAN WATER LEGACY PHOSPHORUS 
 18.17  REDUCTION GRANTS.] 
 18.18     Subdivision 1.  [CREATION OF FUND; APPROPRIATION.] The 
 18.19  authority shall establish a clean water legacy capital 
 18.20  improvement fund and shall make grants from the fund as provided 
 18.21  in this section.  Money in the clean water legacy capital 
 18.22  improvement fund, including interest earned, is appropriated to 
 18.23  the authority for the purposes of this section. 
 18.24     Subd. 2.  [GRANTS.] The authority shall award grants from 
 18.25  the clean water legacy capital improvement fund to governmental 
 18.26  units for the capital costs of wastewater treatment facility 
 18.27  projects or a portion thereof that will reduce the discharge of 
 18.28  total phosphorus from the facility to one milligram per liter or 
 18.29  less.  A project is eligible for a grant if it meets the 
 18.30  following requirements: 
 18.31     (1) the applicable phosphorus discharge limit is 
 18.32  incorporated in a permit issued by the agency for the wastewater 
 18.33  treatment facility on or after March 28, 2000, or the grantee 
 18.34  agrees to comply with the applicable limit as a condition of 
 18.35  receiving the grant; 
 18.36     (2) the governmental unit has submitted a facilities plan 
 19.1   for the project to the agency and a grant application to the 
 19.2   authority on a form prescribed by the authority; and 
 19.3      (3) the agency has approved the application and facilities 
 19.4   plan, and certified the eligible costs for the project to the 
 19.5   authority. 
 19.6      Subd. 3.  [ELIGIBLE CAPITAL COSTS.] Eligible capital costs 
 19.7   for phosphorus reduction grants under subdivision 4, paragraph 
 19.8   (a), include the as-bid construction costs and engineering 
 19.9   planning and design costs.  Eligible capital costs for 
 19.10  phosphorus reduction grants under subdivision 4, paragraph (b), 
 19.11  include the final, incurred construction, engineering, planning, 
 19.12  and design costs. 
 19.13     Subd. 4.  [GRANT AMOUNTS AND PRIORITIES.] (a) Priority must 
 19.14  be given to projects that start construction on or after July 1, 
 19.15  2005.  If a facility's plan for a project is approved by the 
 19.16  agency before July 1, 2009, the amount of the grant is 75 
 19.17  percent of the eligible capital cost of the project.  If a 
 19.18  facility's plan for a project is approved by the agency on or 
 19.19  after July 1, 2009, the amount of the grant is 50 percent of the 
 19.20  eligible capital cost of the project.  Priority in awarding 
 19.21  grants under this paragraph must be based on the date of 
 19.22  approval of the facility's plan for the project. 
 19.23     (b) Projects that meet the eligibility requirements in 
 19.24  subdivision 2 and have started construction before July 1, 2005, 
 19.25  are eligible for grants to reimburse 75 percent of the eligible 
 19.26  capital cost of the project, less any amounts previously 
 19.27  received in grants from other sources.  Application for a grant 
 19.28  under this paragraph must be submitted to the agency no later 
 19.29  than June 30, 2007.  Priority for award of grants under this 
 19.30  paragraph must be based on the date of agency approval of the 
 19.31  application for the grant. 
 19.32     (c) In each fiscal year that money is available for grants, 
 19.33  the authority shall first award grants under paragraph (a) to 
 19.34  projects that met the eligibility requirements of subdivision 2 
 19.35  by May 1 of that year.  The authority shall use any remaining 
 19.36  money available that year to award grants under paragraph (b).  
 20.1   Grants that have been approved but not awarded in a previous 
 20.2   fiscal year carry over and must be awarded in subsequent fiscal 
 20.3   years in accordance with the priorities in this paragraph. 
 20.4      (d) Disbursements of grants under this section by the 
 20.5   authority to recipients must be made for eligible project costs 
 20.6   as incurred by the recipients, and must be made by the authority 
 20.7   in accordance with the project financing agreement and 
 20.8   applicable state law. 
 20.9      Subd. 5.  [FEES.] The authority may charge the grant 
 20.10  recipient a fee for its administrative costs not to exceed 
 20.11  one-half of one percent of the grant amount, to be paid upon 
 20.12  execution of the grant agreement. 
 20.13     Sec. 11.  [446A.074] [SMALL COMMUNITY WASTEWATER TREATMENT 
 20.14  LOAN PROGRAM.] 
 20.15     Subdivision 1.  [CREATION OF FUND.] The authority shall 
 20.16  establish a small community wastewater treatment fund and shall 
 20.17  make loans from the fund as provided in this section.  Money in 
 20.18  the fund is annually appropriated to the authority and does not 
 20.19  lapse.  The fund shall be credited with all loan repayments and 
 20.20  investment income from the fund, and servicing fees assessed 
 20.21  under section 446A.04, subdivision 5.  The authority shall 
 20.22  manage and administer the small community wastewater treatment 
 20.23  fund, and for these purposes, may exercise all powers provided 
 20.24  in this chapter.  
 20.25     Subd. 2.  [LOANS.] The authority shall award loans to 
 20.26  governmental units from the small community wastewater treatment 
 20.27  fund for projects to replace noncomplying individual sewage 
 20.28  treatment systems with a community wastewater treatment system 
 20.29  or systems meeting the requirements of section 115.55.  A 
 20.30  governmental unit receiving a loan from the fund shall own the 
 20.31  community wastewater treatment systems built under the program 
 20.32  and shall be responsible, either directly or through a contract 
 20.33  with a private vendor, for all inspections, maintenance, and 
 20.34  repairs necessary to assure proper operation of the systems. 
 20.35     Subd. 3.  [PROJECT PRIORITY LIST.] Governmental units 
 20.36  seeking loans from the small community wastewater treatment loan 
 21.1   program shall first submit a project proposal to the agency.  A 
 21.2   project proposal shall include a compliance determination for 
 21.3   all individual sewage treatment systems in the project area.  
 21.4   The agency shall rank project proposals on its project priority 
 21.5   list used for the water pollution control revolving fund under 
 21.6   section 446A.07. 
 21.7      Subd. 4.  [LOAN APPLICATIONS.] Governmental units with 
 21.8   projects on the project priority list shall submit applications 
 21.9   to the authority on forms prescribed by the authority.  The 
 21.10  application shall include: 
 21.11     (1) a list of the individual sewage treatment systems 
 21.12  proposed to be replaced over a period of up to three years; 
 21.13     (2) a project schedule and cost estimate for each year of 
 21.14  the project; 
 21.15     (3) a financing plan for repayment of the loan; and 
 21.16     (4) a management plan providing for the inspection, 
 21.17  maintenance, and repairs necessary to assure proper operation of 
 21.18  the systems. 
 21.19     Subd. 5.  [LOAN AWARDS.] The authority shall award loans to 
 21.20  governmental units with approved loan applications based on 
 21.21  their ranking on the agency's project priority list.  The loan 
 21.22  amount shall be based on the estimated project costs for the 
 21.23  portion of the project expected to be completed within one year, 
 21.24  up to an annual maximum of $500,000.  For projects expected to 
 21.25  take more than one year to complete, the authority may make a 
 21.26  multiyear commitment for a period not to exceed three years, 
 21.27  contingent on the future availability of funds.  Each year of a 
 21.28  multiyear commitment must be funded by a separate loan agreement 
 21.29  meeting the terms and conditions in subdivision 6.  A 
 21.30  governmental unit receiving a loan under a multiyear commitment 
 21.31  shall have priority for additional loan funds in subsequent 
 21.32  years. 
 21.33     Subd. 6.  [LOAN TERMS AND CONDITIONS.] Loans from the small 
 21.34  community wastewater treatment fund shall comply with the 
 21.35  following terms and conditions: 
 21.36     (1) principal and interest payments must begin no later 
 22.1   than two years after the loan is awarded; 
 22.2      (2) loans shall carry an interest rate of one percent; 
 22.3      (3) loans shall be fully amortized within ten years of the 
 22.4   first scheduled payment or, if the loan amount exceeds $10,000 
 22.5   per household, shall be fully amortized within 20 years but not 
 22.6   to exceed the expected design life of the system; 
 22.7      (4) a governmental unit receiving a loan must establish a 
 22.8   dedicated source or sources of revenues for repayment of the 
 22.9   loan and must issue a general obligation note to the authority 
 22.10  for the full amount of the loan; and 
 22.11     (5) each property owner to be served by a community 
 22.12  wastewater treatment system under this program must provide an 
 22.13  easement to the governmental unit to allow access to the system 
 22.14  for management and repairs. 
 22.15     Subd. 7.  [SPECIAL ASSESSMENT DEFERRAL.] (a) A governmental 
 22.16  unit receiving a loan under this section that levies special 
 22.17  assessments to repay the loan may defer payment of the 
 22.18  assessments under the provisions of sections 435.193 to 435.195. 
 22.19     (b) A governmental unit that defers payment of special 
 22.20  assessments for one or more properties under paragraph (a) may 
 22.21  request deferral of that portion of the debt service on its 
 22.22  loan, and the authority shall accept appropriate amendments to 
 22.23  the general obligation note of the governmental unit.  If 
 22.24  special assessment payments are later received from properties 
 22.25  that received a deferral, the funds received shall be paid to 
 22.26  the authority with the next scheduled loan payment. 
 22.27     Subd. 8.  [ELIGIBLE COSTS.] Eligible costs for small 
 22.28  community wastewater treatment loans shall include the costs of 
 22.29  planning, design, construction, legal fees, administration, and 
 22.30  land acquisition. 
 22.31     Subd. 9.  [DISBURSEMENTS.] Loan disbursements by the 
 22.32  authority under this section must be made for eligible project 
 22.33  costs as incurred by the recipients, and must be made in 
 22.34  accordance with the project loan agreement and applicable state 
 22.35  law. 
 22.36     Subd. 10.  [AUDITS.] A governmental unit receiving a loan 
 23.1   under this section must annually provide to the authority for 
 23.2   the term of the loan a copy of its annual independent audit or, 
 23.3   if the governmental unit is not required to prepare an 
 23.4   independent audit, a copy of the annual financial reporting form 
 23.5   it provides to the state auditor. 
 23.6      Sec. 12.  [APPROPRIATIONS.] 
 23.7      Subdivision 1.  [GENERAL PROVISIONS.] The appropriations in 
 23.8   this section are from the environmental fund and are available 
 23.9   for the fiscal years ending June 30, 2006, and June 30, 2007.  
 23.10  Any money remaining after the first year of the biennium is 
 23.11  available for the second year.  Appropriations in this section 
 23.12  that are encumbered under contract, including grant contract, on 
 23.13  or before June 30, 2007, are available until June 30, 2009. 
 23.14     Subd. 2.  [DEPARTMENT OF REVENUE; FEE COLLECTION 
 23.15  COSTS.] $38,000 in fiscal year 2006 and $31,000 in fiscal year 
 23.16  2007 are appropriated to the Department of Revenue to pay the 
 23.17  costs of collection and administration of the clean water fees 
 23.18  imposed in Minnesota Statutes, section 114D.40. 
 23.19     Subd. 3.  [POLLUTION CONTROL AGENCY.] The following amounts 
 23.20  are appropriated to the Pollution Control Agency for the 
 23.21  purposes stated: 
 23.22     (1) $1,000,000 in fiscal year 2006 is to assist counties in 
 23.23  developing the list required under Minnesota Statutes, section 
 23.24  114D.40, subdivision 4, paragraph (e), of persons subject to 
 23.25  clean water fees under Minnesota Statutes, section 114D.40, 
 23.26  subdivision 3, paragraphs (f) and (g); 
 23.27     (2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal 
 23.28  year 2007 are for statewide assessment of surface water quality 
 23.29  and trends; of these amounts, up to $1,010,000 in fiscal year 
 23.30  2006 and $1,960,000 in fiscal year 2007 are available for grants 
 23.31  or contracts to support citizen monitoring of surface waters; 
 23.32  and 
 23.33     (3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal 
 23.34  year 2007 are to develop TMDL's for waters listed on the United 
 23.35  States Environmental Protection Agency approved 2004 impaired 
 23.36  waters list; of this appropriation, up to $384,950 in fiscal 
 24.1   year 2006 and $1,118,750 in fiscal year 2007 are available for 
 24.2   grants or contracts to develop TMDL's. 
 24.3      Subd. 4.  [AGRICULTURE DEPARTMENT.] The following amounts 
 24.4   are appropriated to the Department of Agriculture for the 
 24.5   purposes stated: 
 24.6      (1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal 
 24.7   year 2007 are for the agricultural best management practices 
 24.8   loan program under Minnesota Statutes, section 17.117; of these 
 24.9   amounts, $200,000 in fiscal year 2006 and $2,100,000 in fiscal 
 24.10  year 2007 are available for pass-through to local governments 
 24.11  and lenders for low-interest loans; 
 24.12     (2) $350,000 in fiscal year 2006 and $800,000 in fiscal 
 24.13  year 2007 are to expand technical assistance to producers and 
 24.14  conservation professionals on nutrient and pasture management; 
 24.15  target practices to sources of water impairments; coordinate 
 24.16  federal and state farm conservation programs to fully utilize 
 24.17  federal conservation funds; and expand conservation planning 
 24.18  assistance for producers; of these amounts, $50,000 in fiscal 
 24.19  year 2006 and $210,000 in fiscal year 2007 are available for 
 24.20  grants or contracts to develop nutrient and conservation 
 24.21  planning assistance information materials; and 
 24.22     (3) $100,000 in fiscal year 2006 and $800,000 in fiscal 
 24.23  year 2007 are for research, evaluation, and effectiveness 
 24.24  monitoring of agricultural practices in restoring impaired 
 24.25  waters; of these amounts, $600,000 in fiscal year 2007 is 
 24.26  available for grants or contracts for research, evaluations, and 
 24.27  effectiveness monitoring of agricultural practices in restoring 
 24.28  impaired waters, including on-farm demonstrations. 
 24.29     Subd. 5.  [BOARD OF WATER AND SOIL RESOURCES.] The 
 24.30  following amounts are appropriated to the Board of Water and 
 24.31  Soil Resources for restoration and prevention actions as 
 24.32  described in Minnesota Statutes, section 114D.20, subdivisions 6 
 24.33  and 7: 
 24.34     (1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal 
 24.35  year 2007 are for targeted nonpoint restoration cost-share and 
 24.36  incentive payments; of these amounts, up to $450,000 in fiscal 
 25.1   year 2006 and $5,450,000 in fiscal year 2007 are available for 
 25.2   grants to soil and water conservation districts through the 
 25.3   state cost-share program authorized under Minnesota Statutes, 
 25.4   section 103C.501; 
 25.5      (2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal 
 25.6   year 2007 are for targeted nonpoint technical and engineering 
 25.7   assistance for restoration activities; of these amounts, up to 
 25.8   $412,000 in fiscal year 2006 and $3,250,000 in fiscal year 2007 
 25.9   are available for grants to soil and water conservation 
 25.10  districts, watershed management organizations, or counties to 
 25.11  support implementation of nonpoint restoration activities; 
 25.12     (3) $200,000 in fiscal year 2007 is for reporting and 
 25.13  evaluation of applied soil and water conservation practices; 
 25.14     (4) $2,400,000 in fiscal year 2007 is for grants to 
 25.15  counties for implementation of county individual sewage 
 25.16  treatment systems programs through the local water resources 
 25.17  protection and management program under Minnesota Statutes, 
 25.18  section 103B.3369; 
 25.19     (5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal 
 25.20  year 2007 are for base and challenge grants to support nonpoint 
 25.21  source protection activities related to lake and river 
 25.22  protection and management through the local water resources 
 25.23  protection and management program under Minnesota Statutes, 
 25.24  section 103B.3369; and 
 25.25     (6) $2,400,000 in fiscal year 2007 is for grants to soil 
 25.26  and water conservation districts for streambank, stream channel, 
 25.27  lakeshore, and roadside protection and restoration projects 
 25.28  through the state-cost share program under Minnesota Statutes, 
 25.29  section 103C.501. 
 25.30     Subd. 6.  [DEPARTMENT OF NATURAL RESOURCES.] The following 
 25.31  amounts are appropriated to the Department of Natural Resources 
 25.32  for the purposes stated:  
 25.33     (1) $280,000 in fiscal year 2006 and $430,000 in fiscal 
 25.34  year 2007 are for statewide assessment of surface water quality 
 25.35  and trends; and 
 25.36     (2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal 
 26.1   year 2007 are for restoration of impaired waters and actions to 
 26.2   prevent waters from becoming impaired; of these amounts, up to 
 26.3   $1,700,000 in fiscal year 2007 is available for grants and 
 26.4   contracts for forest stewardship planning and implementation, 
 26.5   and for research and monitoring. 
 26.6      Subd. 7.  [PUBLIC FACILITIES AUTHORITY.] $4,400,000 in 
 26.7   fiscal year 2006 and $44,015,000 in fiscal year 2007 are 
 26.8   appropriated to the Public Facilities Authority; of these 
 26.9   amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in 
 26.10  fiscal year 2007 are for deposit in the clean water legacy 
 26.11  capital improvements fund for grants under Minnesota Statutes, 
 26.12  section 446A.073; $4,582,000 in fiscal year 2007 is for deposit 
 26.13  in the small community wastewater treatment fund for loans under 
 26.14  Minnesota Statutes, section 446A.074; and $22,433,000 in fiscal 
 26.15  year 2007 is for deposit in the water pollution control 
 26.16  revolving fund under Minnesota Statutes, section 446A.07, for 
 26.17  wastewater treatment and storm water projects.  Money 
 26.18  appropriated under this subdivision does not cancel.