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             modifying soil and water conservation district 
  1.8             supervisor election procedures; appropriating money; 
  1.9             amending Minnesota Statutes 2004, section 103C.311, by 
  1.10            adding a subdivision; proposing coding for new law in 
  1.11            Minnesota Statutes, chapter 446A; proposing coding for 
  1.12            new law as Minnesota Statutes, chapter 114D; repealing 
  1.13            Minnesota Statutes 2004, section 103C.311, 
  1.14            subdivisions 1, 2. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 2004, section 103C.311, is 
  1.17  amended by adding a subdivision to read: 
  1.18     Subd. 3.  [SUPERVISORS ELECTED BY DISTRICTS.] (a) The 
  1.19  district board, with the approval of the state board, must by 
  1.20  resolution provide that supervisors will be elected by 
  1.21  supervisor districts as provided in this subdivision.  
  1.22     (b) The supervisor districts must be apportioned to be 
  1.23  coterminous with county commissioner districts.  The districts 
  1.24  must be numbered in a regular series.  The boundaries of the 
  1.25  districts must be redrawn after each decennial federal census as 
  1.26  provided in section 204B.135 and must reflect any changes in the 
  1.27  county commissioner district's boundaries.  A certified copy of 
  1.28  the resolution establishing supervisor districts must be filed 
  1.29  by the chair of the district board with the county auditor of 
  1.30  the counties where the soil and water conservation district is 
  2.1   located, with the state board, and with the secretary of state 
  2.2   at least 30 days before the first date candidates may file for 
  2.3   the office of supervisor. 
  2.4      (c) Each supervisor district is entitled to elect one 
  2.5   supervisor.  A supervisor must be a resident of the district 
  2.6   from which elected.  
  2.7      (d) The district board shall provide staggered terms for 
  2.8   supervisors elected by district.  After each redistricting, 
  2.9   there shall be a new election of supervisors in all the 
  2.10  districts at the next general election, except that if the 
  2.11  change made in the boundaries of a district is less than five 
  2.12  percent of the average population of all the districts, the 
  2.13  supervisor in office at the time of the redistricting shall 
  2.14  serve for the full term for which elected.  The district board 
  2.15  shall determine by lot the seats to be filled for a two-year 
  2.16  term, a four-year term, and a six-year term. 
  2.17     Sec. 2.  [114D.05] [CITATION.] 
  2.18     This chapter may be cited as the "Clean Water Legacy Act." 
  2.19     Sec. 3.  [114D.10] [LEGISLATIVE PURPOSE AND FINDINGS.] 
  2.20     Subdivision 1.  [PURPOSE.] The purpose of the Clean Water 
  2.21  Legacy Act is to protect, restore, and preserve the quality of 
  2.22  Minnesota's surface waters by providing authority, direction, 
  2.23  and resources to achieve and maintain water quality standards 
  2.24  for surface waters as required by section 303(d) of the federal 
  2.25  Clean Water Act, United States Code, title 42, section 1313(d), 
  2.26  and applicable federal regulations. 
  2.27     Subd. 2.  [FINDINGS.] The legislature finds that: 
  2.28     (1) there is a close link between protecting, restoring, 
  2.29  and preserving the quality of Minnesota's surface waters and the 
  2.30  ability to develop the state's economy, enhance its quality of 
  2.31  life, and protect its human and natural resources; 
  2.32     (2) achieving the state's water quality goals will require 
  2.33  long-term commitment and cooperation by all state and local 
  2.34  agencies, and other public and private organizations and 
  2.35  individuals, with responsibility and authority for water 
  2.36  management, planning, and protection; and 
  3.1      (3) all persons and organizations whose activities affect 
  3.2   the quality of waters, including point and nonpoint sources of 
  3.3   pollution, have a responsibility to participate in and support 
  3.4   efforts to achieve the state's water quality goals. 
  3.5      Sec. 4.  [114D.15] [DEFINITIONS.] 
  3.6      Subdivision 1.  [APPLICATION.] The definitions provided in 
  3.7   this section apply to the terms used in this chapter. 
  3.8      Subd. 2.  [CITIZEN MONITORING.] "Citizen monitoring" means 
  3.9   monitoring of surface water quality by individuals and 
  3.10  nongovernmental organizations that is consistent with Pollution 
  3.11  Control Agency guidance on monitoring procedures, quality 
  3.12  assurance protocols, and data management. 
  3.13     Subd. 3.  [CLEAN WATER COUNCIL.] "Clean Water Council" or 
  3.14  "council" means the Clean Water Council created pursuant to 
  3.15  section 114D.30, subdivision 1. 
  3.16     Subd. 4.  [FEDERAL TMDL REQUIREMENTS.] "Federal TMDL 
  3.17  requirements" means the requirements of section 303(d) of the 
  3.18  Clean Water Act, United States Code, title 42, section 1313(d), 
  3.19  and associated regulations and guidance. 
  3.20     Subd. 5.  [IMPAIRED WATER.] "Impaired water" means surface 
  3.21  water that does not meet applicable water quality standards. 
  3.22     Subd. 6.  [PUBLIC AGENCIES.] "Public agencies" means all 
  3.23  state agencies, political subdivisions, joint powers 
  3.24  organizations, and special purpose units of government with 
  3.25  authority, responsibility, or expertise in protecting, 
  3.26  restoring, or preserving the quality of surface waters, managing 
  3.27  or planning for surface waters and related lands, or financing 
  3.28  waters-related projects.  "Public agencies" also includes the 
  3.29  University of Minnesota and other public education institutions. 
  3.30     Subd. 7.  [RESTORATION.] "Restoration" means actions, 
  3.31  including effectiveness monitoring, that are taken to achieve 
  3.32  and maintain water quality standards for impaired waters in 
  3.33  accordance with a TMDL that has been approved by the United 
  3.34  States Environmental Protection Agency under federal TMDL 
  3.35  requirements. 
  3.36     Subd. 8.  [SURFACE WATERS.] "Surface waters" means waters 
  4.1   of the state as defined in section 115.01, subdivision 22, 
  4.2   excluding groundwater as defined in section 115.01, subdivision 
  4.3   6. 
  4.4      Subd. 9.  [THIRD-PARTY TMDL.] "Third-party TMDL" means a 
  4.5   TMDL that is developed by a qualified public agency other than 
  4.6   the Pollution Control Agency consistent with the goals, 
  4.7   policies, and priorities in section 114D.20. 
  4.8      Subd. 10.  [TOTAL MAXIMUM DAILY LOAD OR TMDL.] "Total 
  4.9   maximum daily load" or "TMDL" means a calculation of the maximum 
  4.10  amount of a pollutant that may be introduced into a surface 
  4.11  water and still ensure that applicable water quality standards 
  4.12  for that water are achieved and maintained.  A TMDL is the sum 
  4.13  of the pollutant load allocations for all sources of the 
  4.14  pollutant, including a load allocation for point sources, a load 
  4.15  allocation for nonpoint sources and natural background, a load 
  4.16  allocation for future growth of point and nonpoint sources, and 
  4.17  a margin of safety to account for uncertainty about the 
  4.18  relationship between pollutant loads and the quality of the 
  4.19  receiving surface water.  "Natural background" means 
  4.20  characteristics of the water body resulting from the 
  4.21  multiplicity of factors in nature, including climate and 
  4.22  ecosystem dynamics, that affect the physical, chemical, or 
  4.23  biological conditions in a water body, but does not include 
  4.24  measurable and distinguishable pollution that is attributable to 
  4.25  human activity or influence.  A TMDL must take into account 
  4.26  seasonal variations. 
  4.27     Subd. 11.  [WATER QUALITY STANDARDS.] "Water quality 
  4.28  standards" for Minnesota surface waters are found in Minnesota 
  4.29  Rules, chapters 7050 and 7052. 
  4.30     Sec. 5.  [114D.20] [IMPLEMENTATION; COORDINATION; GOALS; 
  4.31  POLICIES; AND PRIORITIES.] 
  4.32     Subdivision 1.  [COORDINATION AND COOPERATION.] In 
  4.33  implementing this chapter, public agencies shall take into 
  4.34  consideration the relevant provisions of local and other 
  4.35  applicable water management, conservation, land use, land 
  4.36  management, and development plans and programs.  Public agencies 
  5.1   with authority for local water management, conservation, land 
  5.2   use, land management, and development plans shall take into 
  5.3   consideration the manner in which their plans affect the 
  5.4   implementation of this chapter.  Public agencies shall identify 
  5.5   opportunities to participate and assist in the successful 
  5.6   implementation of this chapter, including the funding or 
  5.7   technical assistance needs, if any, that may be necessary.  In 
  5.8   implementing this chapter, public agencies shall endeavor to 
  5.9   engage the cooperation of organizations and individuals whose 
  5.10  activities affect the quality of surface waters, including point 
  5.11  and nonpoint sources of pollution, and who have authority and 
  5.12  responsibility for water management, planning, and protection.  
  5.13  To the extent practicable, public agencies shall endeavor to 
  5.14  enter into formal and informal agreements and arrangements with 
  5.15  federal agencies and departments to jointly utilize staff and 
  5.16  resources to deliver programs or conduct activities to achieve 
  5.17  the intent of this chapter, including efforts under the federal 
  5.18  Clean Water Act and other federal farm and soil and water 
  5.19  conservation programs. 
  5.20     Subd. 2.  [GOALS FOR IMPLEMENTATION.] The following goals 
  5.21  must guide the implementation of this chapter: 
  5.22     (1) to identify impaired waters in accordance with federal 
  5.23  TMDL requirements within ten years after the effective date of 
  5.24  this section and thereafter to ensure continuing evaluation of 
  5.25  surface waters for impairments; 
  5.26     (2) to submit TMDL's to the United States Environmental 
  5.27  Protection Agency for all impaired waters in a timely manner in 
  5.28  accordance with federal TMDL requirements; 
  5.29     (3) to set a reasonable time for implementing restoration 
  5.30  of each identified impaired water; 
  5.31     (4) to provide assistance and incentives to prevent waters 
  5.32  from becoming impaired and to improve the quality of waters that 
  5.33  are listed as impaired but do not have an approved TMDL 
  5.34  addressing the impairment; and 
  5.35     (5) to promptly seek the delisting of waters from the 
  5.36  impaired waters list when those waters are shown to achieve the 
  6.1   designated uses applicable to the waters. 
  6.2      Subd. 3.  [IMPLEMENTATION POLICIES.] The following policies 
  6.3   must guide the implementation of this chapter: 
  6.4      (1) develop regional and watershed TMDL's, and TMDL's for 
  6.5   multiple pollutants, where reasonable and feasible; 
  6.6      (2) maximize use of available organizational, technical, 
  6.7   and financial resources to perform sampling, monitoring, and 
  6.8   other activities to identify impaired waters, including use of 
  6.9   citizen monitoring; 
  6.10     (3) maximize opportunities for restoration of impaired 
  6.11  waters, by prioritizing and targeting of available programmatic, 
  6.12  financial, and technical resources and by providing additional 
  6.13  state resources to complement and leverage available resources; 
  6.14     (4) use existing regulatory authorities to achieve 
  6.15  restoration for point and nonpoint sources of pollution where 
  6.16  applicable, and promote the development and use of effective 
  6.17  nonregulatory measures to address pollution sources for which 
  6.18  regulations are not applicable; 
  6.19     (5) use restoration methods that have a demonstrated 
  6.20  effectiveness in reducing impairments and provide the greatest 
  6.21  long-term positive impact on water quality protection and 
  6.22  improvement and related conservation benefits while 
  6.23  incorporating innovative approaches on a case-by-case basis; 
  6.24     (6) identify for the legislature any innovative approaches 
  6.25  that may strengthen or complement existing programs; and 
  6.26     (7) identify and encourage implementation of measures to 
  6.27  prevent waters from becoming impaired and to improve the quality 
  6.28  of waters that are listed as impaired but have no approved TMDL 
  6.29  addressing the impairment using the best available data and 
  6.30  technology, and establish and report outcome-based performance 
  6.31  measures that monitor the progress and effectiveness of 
  6.32  protection and restoration measures. 
  6.33     Subd. 4.  [PRIORITIES FOR IDENTIFYING IMPAIRED WATERS.] The 
  6.34  Pollution Control Agency, in accordance with federal TMDL 
  6.35  requirements, shall set priorities for identifying impaired 
  6.36  waters, giving consideration to: 
  7.1      (1) waters where impairments would pose the greatest 
  7.2   potential risk to human or aquatic health; and 
  7.3      (2) waters where data developed through public agency or 
  7.4   citizen monitoring or other means provides evidence that an 
  7.5   impaired condition exists. 
  7.6      Subd. 5.  [PRIORITIES FOR PREPARATION OF TMDL'S.] The Clean 
  7.7   Water Council shall recommend priorities for scheduling and 
  7.8   preparing TMDL's taking into account the severity of the 
  7.9   impairment, the designated uses of those waters, and other 
  7.10  applicable federal TMDL requirements.  In recommending 
  7.11  priorities, the council shall also give consideration to waters 
  7.12  and watersheds: 
  7.13     (1) with impairments that pose the greatest potential risk 
  7.14  to human health; 
  7.15     (2) with impairments that pose the greatest potential risk 
  7.16  to threatened or endangered species; 
  7.17     (3) with impairments that pose the greatest potential risk 
  7.18  to aquatic health; 
  7.19     (4) where other public agencies and participating 
  7.20  organizations and individuals, especially local, basinwide, or 
  7.21  regional agencies or organizations, have demonstrated readiness 
  7.22  to assist in carrying out the responsibilities, including 
  7.23  availability and organization of human, technical, and financial 
  7.24  resources necessary to undertake the work; and 
  7.25     (5) where there is demonstrated coordination and 
  7.26  cooperation among cities, counties, watershed districts, and 
  7.27  soil and water conservation districts in planning and 
  7.28  implementation of activities that will assist in carrying out 
  7.29  the responsibilities. 
  7.30     Subd. 6.  [PRIORITIES FOR RESTORATION OF IMPAIRED 
  7.31  WATERS.] In implementing restoration of impaired waters, in 
  7.32  addition to the priority considerations in subdivision 5 the 
  7.33  Clean Water Council shall give priority in its recommendations 
  7.34  for restoration funding from the clean water legacy account to 
  7.35  restoration projects that: 
  7.36     (1) coordinate with and utilize existing local authorities 
  8.1   and infrastructure for implementation; 
  8.2      (2) can be implemented in whole or in part by providing 
  8.3   support for existing or ongoing restoration efforts; 
  8.4      (3) most effectively leverage other sources of restoration 
  8.5   funding, including federal, state, local, and private sources of 
  8.6   funds; 
  8.7      (4) show a high potential for early restoration and 
  8.8   delisting based upon data developed through public agency or 
  8.9   citizen monitoring or other means; and 
  8.10     (5) show a high potential for long-term water quality and 
  8.11  related conservation benefits. 
  8.12     Subd. 7.  [PRIORITIES FOR FUNDING PREVENTION ACTIONS.] The 
  8.13  Clean Water Council shall apply the priorities applicable under 
  8.14  subdivision 6, as far as practicable, when recommending 
  8.15  priorities for funding actions to prevent waters from becoming 
  8.16  impaired and to improve the quality of waters that are listed as 
  8.17  impaired but do not have an approved TMDL. 
  8.18     Sec. 6.  [114D.25] [ADMINISTRATION; POLLUTION CONTROL 
  8.19  AGENCY.] 
  8.20     Subdivision 1.  [GENERAL DUTIES AND AUTHORITIES.] (a) The 
  8.21  Pollution Control Agency, in accordance with federal TMDL 
  8.22  requirements, shall:  identify impaired waters and propose a 
  8.23  list of the waters for review and approval by the United States 
  8.24  Environmental Protection Agency; develop and approve TMDL's for 
  8.25  listed impaired waters and submit the approved TMDL's to the 
  8.26  United States Environmental Protection Agency for final 
  8.27  approval; and propose to delist waters from the United States 
  8.28  Environmental Protection Agency impaired waters list. 
  8.29     (b) A TMDL must include a statement of the facts and 
  8.30  scientific data supporting the TMDL and a list of potential 
  8.31  implementation options, including: 
  8.32     (1) a range of estimates of the cost of implementation of 
  8.33  the TMDL; and 
  8.34     (2) for point sources, the individual wasteload data and 
  8.35  the estimated cost of compliance addressed by the TMDL. 
  8.36  The implementation information does not need to be sent to the 
  9.1   United States Environmental Protection Agency for review. 
  9.2      Subd. 2.  [ADMINISTRATIVE PROCEDURES FOR TMDL 
  9.3   APPROVAL.] Before approving a TMDL, the agency shall give 
  9.4   written notice to the public of the proposed TMDL and provide a 
  9.5   30-day opportunity for submission of written comments.  The 
  9.6   agency shall distribute the notice in the same manner as a 
  9.7   notice of a proposed permit is distributed under agency rules.  
  9.8   The approval of a TMDL by the Pollution Control Agency is a 
  9.9   final decision of the agency under section 115.05, subdivision 
  9.10  11, clause (1), and is subject to the contested case procedures 
  9.11  of sections 14.57 to 14.62 in accordance with agency procedural 
  9.12  rules.  The agency shall not submit an approved TMDL to the 
  9.13  United States Environmental Protection Agency until the time for 
  9.14  commencing judicial review has run or the judicial review 
  9.15  process has been completed.  A TMDL is not subject to the 
  9.16  rulemaking requirements of chapter 14, including section 14.386. 
  9.17     Subd. 3.  [THIRD-PARTY TMDL DEVELOPMENT.] The Pollution 
  9.18  Control Agency may enter agreements with any qualified public 
  9.19  agency setting forth the terms and conditions under which that 
  9.20  entity is authorized to develop a third-party TMDL.  In 
  9.21  determining whether the public agency is qualified to develop a 
  9.22  third-party TMDL, the Pollution Control Agency shall consider 
  9.23  the technical and administrative qualifications of the public 
  9.24  agency and shall avoid any potential organizational conflict of 
  9.25  interest, as defined in section 16C.02, subdivision 10a, of the 
  9.26  public agency with respect to the development of the third-party 
  9.27  TMDL.  A third-party TMDL is subject to modification and 
  9.28  approval by the Pollution Control Agency, and must be approved 
  9.29  by the Pollution Control Agency before it is submitted to the 
  9.30  United States Environmental Protection Agency.  The Pollution 
  9.31  Control Agency shall consider authorizing the development of 
  9.32  third-party TMDL's consistent with the goals, policies, and 
  9.33  priorities determined under section 116.384. 
  9.34     Sec. 7.  [114D.30] [CLEAN WATER COUNCIL.] 
  9.35     Subdivision 1.  [CREATION; DUTIES.] A Clean Water Council 
  9.36  is created to advise on the administration and implementation of 
 10.1   this chapter, and foster coordination and cooperation as 
 10.2   described in section 114D.20, subdivision 1.  The council may 
 10.3   also advise on the development of appropriate processes for 
 10.4   expert scientific review as described in section 114D.35, 
 10.5   subdivision 2.  The Pollution Control Agency shall provide 
 10.6   administrative support for the council with the support of other 
 10.7   member agencies.  The members of the council shall elect a chair 
 10.8   from the nonagency members of the council. 
 10.9      Subd. 2.  [MEMBERSHIP; APPOINTMENT.] The commissioners of 
 10.10  natural resources, agriculture, and the Pollution Control 
 10.11  Agency, and the executive director of the Board of Water and 
 10.12  Soil Resources are the appointing authorities for the council.  
 10.13  Each appointing authority or the authority's designee shall 
 10.14  appoint one person from their respective agency to serve as a 
 10.15  member of the council.  Eighteen additional nonagency members of 
 10.16  the council shall be appointed as follows: 
 10.17     (1) two members representing statewide farm organizations, 
 10.18  appointed by the governor; 
 10.19     (2) one member representing business organizations, 
 10.20  appointed by the governor; 
 10.21     (3) one member representing environmental organizations, 
 10.22  appointed by the governor; 
 10.23     (4) one member representing soil and water conservation 
 10.24  districts, appointed by the governor; 
 10.25     (5) one member representing watershed districts, appointed 
 10.26  by the governor; 
 10.27     (6) one member representing organizations focused on 
 10.28  improvement of Minnesota lakes or streams, appointed by the 
 10.29  governor; 
 10.30     (7) two members representing an organization of county 
 10.31  governments, appointed by the governor; 
 10.32     (8) two members representing organizations of city 
 10.33  governments, appointed by the governor; 
 10.34     (9) one member representing the Metropolitan Council 
 10.35  established under section 473.123, appointed by the governor; 
 10.36     (10) one township officer, appointed by the governor; 
 11.1      (11) one member of the house of representatives, appointed 
 11.2   by the speaker; 
 11.3      (12) one member of the senate, appointed by the majority 
 11.4   leader; 
 11.5      (13) one member representing the University of Minnesota or 
 11.6   a Minnesota state university, appointed by the governor; 
 11.7      (14) one member representing the interests of rural 
 11.8   counties, appointed by the governor; and 
 11.9      (15) one member representing the interests of counties in 
 11.10  the seven-county metropolitan area, appointed by the governor. 
 11.11     The members of the council appointed by the governor are 
 11.12  subject to the advice and consent of the senate.  At least six 
 11.13  of the members appointed by the governor must reside in the 
 11.14  seven-county metropolitan area. 
 11.15     Subd. 3.  [TERMS; COMPENSATION; REMOVAL.] The initial terms 
 11.16  of members representing state agencies and the Metropolitan 
 11.17  Council expire on the first Monday in January, 2007.  
 11.18  Thereafter, the terms of members representing the state agencies 
 11.19  and the Metropolitan Council are four years and are coterminous 
 11.20  with the governor.  The terms of other members of the council 
 11.21  shall be as provided in section 15.059, subdivision 2.  Members 
 11.22  may serve until their successors are appointed and qualify.  
 11.23  Compensation and removal of council members is as provided in 
 11.24  section 15.059, subdivisions 3 and 4.  A vacancy on the council 
 11.25  may be filled by the appointing authorities, as provided in 
 11.26  subdivision 1, for the remainder of the unexpired term. 
 11.27     Subd. 4.  [IMPLEMENTATION PLAN.] The Clean Water Council 
 11.28  shall prepare a plan for implementation of this chapter.  The 
 11.29  plan shall address general procedures and time frames for 
 11.30  implementing this chapter, and shall include a more specific 
 11.31  implementation work plan for the next fiscal biennium and a 
 11.32  framework for setting priorities to address impaired waters 
 11.33  consistent with section 114D.20, subdivisions 2 to 7.  The 
 11.34  council shall issue the first implementation plan under this 
 11.35  subdivision by December 1, 2005, and shall issue a revised work 
 11.36  plan by December 1 of each even-numbered year thereafter. 
 12.1      Subd. 5.  [RECOMMENDATIONS ON APPROPRIATION OF FUNDS.] The 
 12.2   Clean Water Council shall recommend to the governor the manner 
 12.3   in which money from the clean water legacy account should be 
 12.4   appropriated for the purposes identified in section 114D.45, 
 12.5   subdivision 3.  The council's recommendations must be consistent 
 12.6   with the purposes, policies, goals, and priorities in sections 
 12.7   114D.05 to 114D.35, and shall allocate adequate support and 
 12.8   resources to identify impaired waters, develop TMDL's, implement 
 12.9   restoration of impaired waters, and provide assistance and 
 12.10  incentives to prevent waters from becoming impaired and improve 
 12.11  the quality of waters which are listed as impaired but have no 
 12.12  approved TMDL. 
 12.13     Subd. 6.  [BIENNIAL REPORT TO LEGISLATURE.] By December 1 
 12.14  of each even-numbered year, the council shall submit a report to 
 12.15  the legislature on the activities for which money from the clean 
 12.16  water legacy account has been or will be spent for the current 
 12.17  biennium, the activities for which money from the account is 
 12.18  recommended to be spent in the next biennium, and the impact on 
 12.19  economic development of the implementation of the impaired 
 12.20  waters program.  The report due on December 1, 2014, must 
 12.21  include an evaluation of the progress made through June 30, 
 12.22  2014, in implementing this chapter, the need for funding of 
 12.23  future implementation of those sections, and recommendations for 
 12.24  the sources of funding. 
 12.25     Sec. 8.  [114D.35] [PUBLIC AND STAKEHOLDER PARTICIPATION; 
 12.26  SCIENTIFIC REVIEW; EDUCATION.] 
 12.27     Subdivision 1.  [PUBLIC AND STAKEHOLDER PARTICIPATION.] 
 12.28  Public agencies involved in the implementation of this chapter 
 12.29  shall encourage participation by the public and stakeholders, 
 12.30  including local citizens, landowners and managers, and public 
 12.31  and private organizations, in the identification of impaired 
 12.32  waters, in developing TMDL's, and in planning and implementing 
 12.33  restoration of impaired waters.  In particular, the Pollution 
 12.34  Control Agency shall make reasonable efforts to provide timely 
 12.35  information to the public and to stakeholders about impaired 
 12.36  waters that have been identified by the agency.  The agency 
 13.1   shall seek broad and early public and stakeholder participation 
 13.2   in scoping the activities necessary to develop a TMDL, including 
 13.3   the scientific models, methods, and approaches to be used in 
 13.4   TMDL development, and to implement restoration pursuant to 
 13.5   section 114D.15, subdivision 7. 
 13.6      Subd. 2.  [EXPERT SCIENTIFIC ADVICE.] The Clean Water 
 13.7   Council and public agencies shall make use of available 
 13.8   expertise from educational, research, and technical 
 13.9   organizations, including the University of Minnesota and other 
 13.10  higher education institutions, to provide appropriate 
 13.11  independent expert advice on models, methods, and approaches 
 13.12  used in identifying impaired waters, developing TMDL's, and 
 13.13  implementing prevention and restoration. 
 13.14     Subd. 3.  [EDUCATION.] The Clean Water Council shall 
 13.15  develop strategies for informing, educating, and encouraging the 
 13.16  participation of citizens, stakeholders, and others regarding 
 13.17  the identification of impaired waters, development of TMDL's, 
 13.18  and development and implementation of restoration for impaired 
 13.19  waters.  Public agencies shall be responsible for implementing 
 13.20  the strategies. 
 13.21     Sec. 9.  [114D.40] [CLEAN WATER FEES.] 
 13.22     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 13.23  subdivision apply to the terms used in this section. 
 13.24     (b) "Average daily discharge or application limitation" 
 13.25  means the highest allowable average of daily discharge or land 
 13.26  application during a calendar day or any 24-hour period that 
 13.27  reasonably represents the discharge during the calendar day for 
 13.28  the purposes of sampling, calculated as the sum of all daily 
 13.29  discharges or land applications measured during a day, divided 
 13.30  by the number of daily discharges or land applications during 
 13.31  that day. 
 13.32     (c) "Effluent flow" means the flow of domestic wastewater 
 13.33  from a residential dwelling or nonresidential establishment.  
 13.34  The rate of water usage by a residential dwelling or 
 13.35  nonresidential establishment must be substituted for the 
 13.36  effluent flow if effluent flow from the residential dwelling or 
 14.1   nonresidential establishment is not measured. 
 14.2      (d) "Fee collection authority" means a county, the 
 14.3   Pollution Control Agency, or a public agency with authority to 
 14.4   collect fees and charges for sewer services provided by a 
 14.5   publicly owned treatment works. 
 14.6      (e) "Individual sewage treatment system" means a sewage 
 14.7   treatment system, or part thereof, that is regulated by the 
 14.8   state or its political subdivisions, and which serves a 
 14.9   residential dwelling, or nonresidential establishment, or group 
 14.10  thereof, using sewage tanks followed by soil treatment and 
 14.11  disposal or using advanced treatment devices that discharge 
 14.12  below final grade.  "Individual sewage treatment system" also 
 14.13  includes sewage holding tanks and privies. 
 14.14     (f) "Nonresidential establishment" means a structure or 
 14.15  portion of a structure that is not a residential dwelling. 
 14.16     (g) "Publicly owned treatment works" means a device or 
 14.17  system used in the treatment, recycling, or reclamation of 
 14.18  municipal sewage or liquid industrial waste that is owned by the 
 14.19  state, a political subdivision, sanitary district, or other 
 14.20  public organization established under state law and which relies 
 14.21  primarily on wastewater treatment systems other than individual 
 14.22  sewage treatment systems. 
 14.23     (h) "Residential dwelling" means a room or group of rooms 
 14.24  used by an individual, family, or other group as living quarters 
 14.25  which includes facilities for sleeping, eating, cooking, and 
 14.26  sanitation.  "Residential dwelling" includes apartments, 
 14.27  condominiums, cooperatives, attached and detached dwellings, 
 14.28  mobile homes, seasonal or recreational dwellings, or a dwelling 
 14.29  in which a resident of that dwelling engages in a business or 
 14.30  employment.  A farm that includes buildings is treated as a 
 14.31  residential dwelling.  "Residential dwelling" does not include: 
 14.32     (1) hotels, motels, resorts, boarding houses, clubs, 
 14.33  hospitals, nursing homes, dormitories, schools, colleges, or 
 14.34  similar institutional or transient facilities; or 
 14.35     (2) any structure containing not more than two residential 
 14.36  dwelling units that receives a single bill for sewer services 
 15.1   that is combined with one or more nonresidential establishments. 
 15.2      Subd. 2.  [ASSESSMENT OF CLEAN WATER FEES.] A clean water 
 15.3   fee is imposed as provided in subdivision 3 on all discharges of 
 15.4   domestic and industrial wastewater to sanitary sewer systems; 
 15.5   wastewater treatment plants, facilities, or systems; individual 
 15.6   sewage treatment systems; and other systems. 
 15.7      Subd. 3.  [FEE AMOUNTS.] (a) Beginning January 1, 2006, the 
 15.8   amounts of the clean water fees imposed under this section are 
 15.9   as provided in this subdivision. 
 15.10     (b) For discharges to sanitary sewer systems served by a 
 15.11  publicly owned treatment works, the clean water fees are as 
 15.12  follows: 
 15.13     (1) for each residential dwelling that receives a separate 
 15.14  bill for service and contains not more than two residential 
 15.15  dwelling units, $36 per year; 
 15.16     (2) for a structure that contains more than two residential 
 15.17  dwelling units that do not receive separate bills for service, 
 15.18  clean water fees must be calculated as follows: 
 15.19     (i) $36 per year for each residential dwelling unit in the 
 15.20  structure; and 
 15.21     (ii) any nonresidential establishment which is billed 
 15.22  together with the residential dwelling units is subject to a 
 15.23  clean water fee on that portion of the effluent flow for the 
 15.24  structure that is attributable to that nonresidential 
 15.25  establishment, and the fee must be calculated based on effluent 
 15.26  flows as provided in clause (3); and 
 15.27     (3) for each nonresidential establishment that receives a 
 15.28  separate bill for service, the annual fee is as follows: 
 15.29     (i) if average effluent flow is less than 10,000 gallons 
 15.30  per day, $....... in 2006, $....... in 2007, $....... in 2008, 
 15.31  and $....... in 2009 and thereafter; 
 15.32     (ii) if average effluent flow is 10,000 gallons per day or 
 15.33  greater, but less than 100,000 gallons per day, $....... in 
 15.34  2006, $....... in 2007, $....... in 2008, and $....... in 2009 
 15.35  and thereafter; and 
 15.36     (iii) if average effluent flow is 100,000 gallons per day 
 16.1   or greater, $....... in 2006, $....... in 2007, $....... in 
 16.2   2008, and $....... in 2009 and thereafter. 
 16.3      (c) Except as provided in paragraph (d), for discharges 
 16.4   from wastewater treatment facilities, other than publicly owned 
 16.5   treatment works, that are required to obtain a national 
 16.6   pollution discharge elimination system or state disposal system 
 16.7   permit, the annual fee is as follows: 
 16.8      (1) for permits authorizing an average daily discharge or 
 16.9   land application limitation of less than 10,000 gallons on an 
 16.10  annualized basis, $....... in 2006, $....... in 2007, $....... 
 16.11  in 2008, and $....... in 2009 and thereafter; 
 16.12     (2) for permits authorizing an average daily discharge or 
 16.13  land application limitation of 10,000 gallons per day or 
 16.14  greater, but less than 100,000 gallons per day, $....... in 
 16.15  2006, $....... in 2007, $....... in 2008, and $....... in 2009 
 16.16  and thereafter; and 
 16.17     (3) for permits authorizing an average daily discharge or 
 16.18  land application limitation of 100,000 gallons per day or 
 16.19  greater, $....... in 2006, $....... in 2007, $....... in 2008, 
 16.20  and $....... in 2009 and thereafter. 
 16.21     (d) A clean water fee must not be imposed under paragraph 
 16.22  (c), on discharges from a facility that operates under a general 
 16.23  permit issued by the agency. 
 16.24     (e) For discharges to domestic wastewater treatment systems 
 16.25  permitted by the Pollution Control Agency, excluding publicly 
 16.26  owned treatment works, the fee is $36 per year for each 
 16.27  residential dwelling and nonresidential establishment that 
 16.28  discharges to the systems.  No single residential unit or 
 16.29  nonresidential establishment may be required to pay more than 
 16.30  one clean water fee under this paragraph. 
 16.31     (f) For individual sewage treatment systems not permitted 
 16.32  by the Pollution Control Agency, the fee is $36 per year for 
 16.33  each residential dwelling and nonresidential establishment 
 16.34  served by the system.  No single residential unit or 
 16.35  nonresidential establishment may be required to pay more than 
 16.36  one clean water fee under this paragraph. 
 17.1      (g) For any wastewater system not described in paragraphs 
 17.2   (b) to (f), that accepts and discharges untreated or partially 
 17.3   treated wastewater, the fee is $36 per year for each residential 
 17.4   dwelling and nonresidential establishment that discharges to the 
 17.5   system.  
 17.6      (h) Any single residential unit or nonresidential 
 17.7   establishment that would be subject to payment of a clean water 
 17.8   fee under both paragraphs (f) and (g) may only be required to 
 17.9   pay the clean water fee under paragraph (e). 
 17.10     Subd. 4.  [COLLECTION AND ENFORCEMENT.] (a) Fees imposed on 
 17.11  discharges to sanitary sewer systems served by publicly owned 
 17.12  treatment works must be collected by the public agency that 
 17.13  collects fees or charges from the users of that service.  The 
 17.14  fees must be collected at the same time and with the same 
 17.15  frequency as fees or charges for service are collected.  The 
 17.16  collecting entity may enforce payment of the fees using the same 
 17.17  enforcement authority applicable to sewer service charges. 
 17.18     (b) Fees imposed under subdivision 3, paragraphs (c) and 
 17.19  (e), must be collected by the Pollution Control Agency from the 
 17.20  permittees for the facilities or systems.  The Pollution Control 
 17.21  Agency may enforce payment of the fees using the same 
 17.22  enforcement authority applicable to permit fees. 
 17.23     (c) Fees imposed under subdivision 3, paragraphs (f) and 
 17.24  (g), must be collected by each county, from the owners of the 
 17.25  residential dwellings or nonresidential establishments subject 
 17.26  to the fee that are located in the county.  A county shall 
 17.27  collect the fees at least once per calendar year, but may 
 17.28  collect the fees more frequently.  If fees are collected 
 17.29  annually, a county shall require payment of the fees by not 
 17.30  later than February 1 following the calendar year for which the 
 17.31  fee is imposed.  The county shall determine that manner in which 
 17.32  the fees are collected.  Each county shall enact and enforce an 
 17.33  appropriate ordinance to enforce payment of the fees. 
 17.34     (d) By August 15, 2005, a county shall identify and develop 
 17.35  a list of all persons subject to the fees under subdivision 3, 
 17.36  paragraphs (f) and (g), located in that county.  A county shall 
 18.1   annually update the list by August 15 of each year. 
 18.2      (e) A fee collection authority shall exempt a person from 
 18.3   payment of the clean water fee for a discharge of wastewater 
 18.4   from a residential dwelling if the fee collection authority 
 18.5   determines that the person meets any of the criteria for 
 18.6   eligibility under the telephone assistance plan established 
 18.7   under section 237.70, or that the person is receiving telephone 
 18.8   assistance under that plan.  The Pollution Control Agency shall 
 18.9   create a form that fee collection authorities shall use to 
 18.10  determine eligibility for exemption under this paragraph. 
 18.11     (f) Any statement, invoice, or other document used to 
 18.12  collect the fees under this subdivision must clearly identify 
 18.13  the fee as the "Minnesota Clean Water Fee." 
 18.14     Subd. 5.  [PAYMENT TO COMMISSIONER OF REVENUE; DEPOSIT.] (a)
 18.15  A fee collection authority shall remit all fees collected under 
 18.16  this section, less the costs to collect the fees, not to exceed 
 18.17  five percent of the total collected, to the commissioner of 
 18.18  revenue.  The fees must be remitted in a manner prescribed by 
 18.19  the commissioner.  Amounts collected during the previous 
 18.20  calendar quarter must be remitted to the commissioner on April 
 18.21  30, July 31, October 31, and January 31.  In addition to the 
 18.22  costs of collecting the fees, a fee collection authority may 
 18.23  retain from fees collected for calendar year 2006 the costs to 
 18.24  develop methods and procedures for collecting the clean water 
 18.25  fees. 
 18.26     (b) The commissioner of revenue shall deposit all clean 
 18.27  water fees remitted by fee collection authorities in the clean 
 18.28  water legacy account. 
 18.29     (c) The assessment, audit, refund, penalty, interest, 
 18.30  enforcement, collection remedies, appeal, and administrative 
 18.31  provisions of chapters 270 and 289A that are applicable to fees 
 18.32  imposed under chapter 297A apply to the fees imposed by this 
 18.33  section. 
 18.34     Subd. 6.  [EXPIRATION.] This section expires on December 
 18.35  31, 2015. 
 18.36     Sec. 10.  [114D.45] [CLEAN WATER LEGACY ACCOUNT.] 
 19.1      Subdivision 1.  [CREATION.] The clean water legacy account 
 19.2   is created as an account in the environmental fund.  Money in 
 19.3   the account must be made available for the implementation of 
 19.4   this chapter and sections 446A.073 and 446A.074, without 
 19.5   supplanting or taking the place of any other funds which are 
 19.6   currently available or may become available from any other 
 19.7   source, whether federal, state, local, or private, for 
 19.8   implementation of those sections. 
 19.9      Subd. 2.  [SOURCES OF REVENUE.] The following revenues must 
 19.10  be deposited in the clean water legacy account: 
 19.11     (1) the revenue from the clean water fees collected under 
 19.12  section 114D.40; and 
 19.13     (2) interest accrued on the account. 
 19.14     Subd. 3.  [PURPOSES.] Subject to appropriation by the 
 19.15  legislature, the clean water legacy account may be spent for the 
 19.16  following purposes: 
 19.17     (1) to provide grants, loans, and technical assistance to 
 19.18  public agencies and others who are participating in the process 
 19.19  of identifying impaired waters, developing TMDL's, implementing 
 19.20  restoration plans for impaired waters, and monitoring the 
 19.21  effectiveness of restoration; 
 19.22     (2) to support measures to prevent waters from becoming 
 19.23  impaired and to improve the quality of waters that are listed as 
 19.24  impaired but have no approved TMDL addressing the impairment; 
 19.25     (3) to provide grants and loans for wastewater and storm 
 19.26  water treatment projects through the Public Facilities 
 19.27  Authority; 
 19.28     (4) to support the efforts of public agencies associated 
 19.29  with individual sewage treatment systems and financial 
 19.30  assistance for upgrading and replacing the systems; and 
 19.31     (5) to provide funds to state agencies to carry out their 
 19.32  responsibilities under this chapter. 
 19.33     Sec. 11.  [446A.073] [CLEAN WATER LEGACY PHOSPHORUS 
 19.34  REDUCTION GRANTS.] 
 19.35     Subdivision 1.  [CREATION OF FUND; APPROPRIATION.] The 
 19.36  authority shall establish a clean water legacy capital 
 20.1   improvement fund and shall make grants from the fund as provided 
 20.2   in this section.  Money in the clean water legacy capital 
 20.3   improvement fund, including interest earned, is appropriated to 
 20.4   the authority for the purposes of this section. 
 20.5      Subd. 2.  [GRANTS.] The authority shall award grants from 
 20.6   the clean water legacy capital improvement fund to governmental 
 20.7   units for the capital costs of wastewater treatment facility 
 20.8   projects or a portion thereof that will reduce the discharge of 
 20.9   total phosphorus from the facility to one milligram per liter or 
 20.10  less.  A project is eligible for a grant if it meets the 
 20.11  following requirements: 
 20.12     (1) the applicable phosphorus discharge limit is 
 20.13  incorporated in a permit issued by the agency for the wastewater 
 20.14  treatment facility on or after March 28, 2000, or the grantee 
 20.15  agrees to comply with the applicable limit as a condition of 
 20.16  receiving the grant; 
 20.17     (2) the governmental unit has submitted a facilities plan 
 20.18  for the project to the agency and a grant application to the 
 20.19  authority on a form prescribed by the authority; and 
 20.20     (3) the agency has approved the application and facilities 
 20.21  plan, and certified the eligible costs for the project to the 
 20.22  authority. 
 20.23     Subd. 3.  [ELIGIBLE CAPITAL COSTS.] Eligible capital costs 
 20.24  for phosphorus reduction grants under subdivision 4, paragraph 
 20.25  (a), include the as-bid construction costs and engineering 
 20.26  planning and design costs.  Eligible capital costs for 
 20.27  phosphorus reduction grants under subdivision 4, paragraph (b), 
 20.28  include the final, incurred construction, engineering, planning, 
 20.29  and design costs. 
 20.30     Subd. 4.  [GRANT AMOUNTS AND PRIORITIES.] (a) Priority must 
 20.31  be given to projects that start construction on or after July 1, 
 20.32  2005.  If a facility's plan for a project is approved by the 
 20.33  agency before July 1, 2009, the amount of the grant is 75 
 20.34  percent of the eligible capital cost of the project.  If a 
 20.35  facility's plan for a project is approved by the agency on or 
 20.36  after July 1, 2009, the amount of the grant is 50 percent of the 
 21.1   eligible capital cost of the project.  Priority in awarding 
 21.2   grants under this paragraph must be based on the date of 
 21.3   approval of the facility's plan for the project. 
 21.4      (b) Projects that meet the eligibility requirements in 
 21.5   subdivision 2 and have started construction before July 1, 2005, 
 21.6   are eligible for grants to reimburse 75 percent of the eligible 
 21.7   capital cost of the project, less any amounts previously 
 21.8   received in grants from other sources.  Application for a grant 
 21.9   under this paragraph must be submitted to the agency no later 
 21.10  than June 30, 2007.  Priority for award of grants under this 
 21.11  paragraph must be based on the date of agency approval of the 
 21.12  application for the grant. 
 21.13     (c) In each fiscal year that money is available for grants, 
 21.14  the authority shall first award grants under paragraph (a) to 
 21.15  projects that met the eligibility requirements of subdivision 2 
 21.16  by May 1 of that year.  The authority shall use any remaining 
 21.17  money available that year to award grants under paragraph (b).  
 21.18  Grants that have been approved but not awarded in a previous 
 21.19  fiscal year carry over and must be awarded in subsequent fiscal 
 21.20  years in accordance with the priorities in this paragraph. 
 21.21     (d) Disbursements of grants under this section by the 
 21.22  authority to recipients must be made for eligible project costs 
 21.23  as incurred by the recipients, and must be made by the authority 
 21.24  in accordance with the project financing agreement and 
 21.25  applicable state law. 
 21.26     Subd. 5.  [FEES.] The authority may charge the grant 
 21.27  recipient a fee for its administrative costs not to exceed 
 21.28  one-half of one percent of the grant amount, to be paid upon 
 21.29  execution of the grant agreement. 
 21.30     Sec. 12.  [446A.074] [SMALL COMMUNITY WASTEWATER TREATMENT 
 21.31  LOAN PROGRAM.] 
 21.32     Subdivision 1.  [CREATION OF FUND.] The authority shall 
 21.33  establish a small community wastewater treatment fund and shall 
 21.34  make loans from the fund as provided in this section.  Money in 
 21.35  the fund is annually appropriated to the authority and does not 
 21.36  lapse.  The fund shall be credited with all loan repayments and 
 22.1   investment income from the fund, and servicing fees assessed 
 22.2   under section 446A.04, subdivision 5.  The authority shall 
 22.3   manage and administer the small community wastewater treatment 
 22.4   fund, and for these purposes, may exercise all powers provided 
 22.5   in this chapter.  
 22.6      Subd. 2.  [LOANS.] The authority shall award loans to 
 22.7   governmental units from the small community wastewater treatment 
 22.8   fund for projects to replace noncomplying individual sewage 
 22.9   treatment systems with a community wastewater treatment system 
 22.10  or systems meeting the requirements of section 115.55.  A 
 22.11  governmental unit receiving a loan from the fund shall own the 
 22.12  community wastewater treatment systems built under the program 
 22.13  and shall be responsible, either directly or through a contract 
 22.14  with a private vendor, for all inspections, maintenance, and 
 22.15  repairs necessary to assure proper operation of the systems. 
 22.16     Subd. 3.  [PROJECT PRIORITY LIST.] Governmental units 
 22.17  seeking loans from the small community wastewater treatment loan 
 22.18  program shall first submit a project proposal to the agency.  A 
 22.19  project proposal shall include a compliance determination for 
 22.20  all individual sewage treatment systems in the project area.  
 22.21  The agency shall rank project proposals on its project priority 
 22.22  list used for the water pollution control revolving fund under 
 22.23  section 446A.07. 
 22.24     Subd. 4.  [LOAN APPLICATIONS.] Governmental units with 
 22.25  projects on the project priority list shall submit applications 
 22.26  to the authority on forms prescribed by the authority.  The 
 22.27  application shall include: 
 22.28     (1) a list of the individual sewage treatment systems 
 22.29  proposed to be replaced over a period of up to three years; 
 22.30     (2) a project schedule and cost estimate for each year of 
 22.31  the project; 
 22.32     (3) a financing plan for repayment of the loan; and 
 22.33     (4) a management plan providing for the inspection, 
 22.34  maintenance, and repairs necessary to assure proper operation of 
 22.35  the systems. 
 22.36     Subd. 5.  [LOAN AWARDS.] The authority shall award loans to 
 23.1   governmental units with approved loan applications based on 
 23.2   their ranking on the agency's project priority list.  The loan 
 23.3   amount shall be based on the estimated project costs for the 
 23.4   portion of the project expected to be completed within one year, 
 23.5   up to an annual maximum of $500,000.  For projects expected to 
 23.6   take more than one year to complete, the authority may make a 
 23.7   multiyear commitment for a period not to exceed three years, 
 23.8   contingent on the future availability of funds.  Each year of a 
 23.9   multiyear commitment must be funded by a separate loan agreement 
 23.10  meeting the terms and conditions in subdivision 6.  A 
 23.11  governmental unit receiving a loan under a multiyear commitment 
 23.12  shall have priority for additional loan funds in subsequent 
 23.13  years. 
 23.14     Subd. 6.  [LOAN TERMS AND CONDITIONS.] Loans from the small 
 23.15  community wastewater treatment fund shall comply with the 
 23.16  following terms and conditions: 
 23.17     (1) principal and interest payments must begin no later 
 23.18  than two years after the loan is awarded; 
 23.19     (2) loans shall carry an interest rate of one percent; 
 23.20     (3) loans shall be fully amortized within ten years of the 
 23.21  first scheduled payment or, if the loan amount exceeds $10,000 
 23.22  per household, shall be fully amortized within 20 years but not 
 23.23  to exceed the expected design life of the system; 
 23.24     (4) a governmental unit receiving a loan must establish a 
 23.25  dedicated source or sources of revenues for repayment of the 
 23.26  loan and must issue a general obligation note to the authority 
 23.27  for the full amount of the loan; and 
 23.28     (5) each property owner to be served by a community 
 23.29  wastewater treatment system under this program must provide an 
 23.30  easement to the governmental unit to allow access to the system 
 23.31  for management and repairs. 
 23.32     Subd. 7.  [SPECIAL ASSESSMENT DEFERRAL.] (a) A governmental 
 23.33  unit receiving a loan under this section that levies special 
 23.34  assessments to repay the loan may defer payment of the 
 23.35  assessments under the provisions of sections 435.193 to 435.195. 
 23.36     (b) A governmental unit that defers payment of special 
 24.1   assessments for one or more properties under paragraph (a) may 
 24.2   request deferral of that portion of the debt service on its 
 24.3   loan, and the authority shall accept appropriate amendments to 
 24.4   the general obligation note of the governmental unit.  If 
 24.5   special assessment payments are later received from properties 
 24.6   that received a deferral, the funds received shall be paid to 
 24.7   the authority with the next scheduled loan payment. 
 24.8      Subd. 8.  [ELIGIBLE COSTS.] Eligible costs for small 
 24.9   community wastewater treatment loans shall include the costs of 
 24.10  planning, design, construction, legal fees, administration, and 
 24.11  land acquisition. 
 24.12     Subd. 9.  [DISBURSEMENTS.] Loan disbursements by the 
 24.13  authority under this section must be made for eligible project 
 24.14  costs as incurred by the recipients, and must be made in 
 24.15  accordance with the project loan agreement and applicable state 
 24.16  law. 
 24.17     Subd. 10.  [AUDITS.] A governmental unit receiving a loan 
 24.18  under this section must annually provide to the authority for 
 24.19  the term of the loan a copy of its annual independent audit or, 
 24.20  if the governmental unit is not required to prepare an 
 24.21  independent audit, a copy of the annual financial reporting form 
 24.22  it provides to the state auditor. 
 24.23     Sec. 13.  [446A.075] [TOTAL MAXIMUM DAILY LOAD GRANTS.] 
 24.24     Subdivision 1.  [PROGRAM ESTABLISHED.] From money 
 24.25  appropriated for this program, the authority shall make grants 
 24.26  to municipalities to cover up to one-half the cost of wastewater 
 24.27  treatment or stormwater projects made necessary by wasteload 
 24.28  reductions under total maximum daily load plans required by 
 24.29  section 303(d) of the federal Clean Water Act, United States 
 24.30  Code, title 33, section 1313(d). 
 24.31     Subd. 2.  [GRANT APPLICATION.] Application for a grant 
 24.32  shall be made to the authority on forms prescribed by the 
 24.33  authority for the total maximum daily load grant program, with 
 24.34  additional information as required by the authority.  In 
 24.35  accordance with section 116.182, the Pollution Control Agency 
 24.36  shall: 
 25.1      (1) calculate the essential project component percentage, 
 25.2   which shall be multiplied by the total project cost to determine 
 25.3   the eligible project cost; and 
 25.4      (2) review and certify approved projects to the authority. 
 25.5      Subd. 3.  [PROJECT PRIORITIES.] From money appropriated for 
 25.6   this program, the authority shall reserve money for projects in 
 25.7   the order that their total maximum daily load plan was approved 
 25.8   by the United States Environmental Protection Agency and in an 
 25.9   amount based on their most recent cost estimates submitted to 
 25.10  the authority or the as-bid costs, whichever is less. 
 25.11     Subd. 4.  [GRANT APPROVAL.] The authority shall make a 
 25.12  grant to a municipality, as defined in section 116.182, 
 25.13  subdivision 1, only after: 
 25.14     (1) the commissioner of the Minnesota Pollution Control 
 25.15  Agency has certified to the United States Environmental 
 25.16  Protection Agency a total maximum daily load plan for identified 
 25.17  waters of this state that includes a point source wasteload 
 25.18  allocation; 
 25.19     (2) the United States Environmental Protection Agency has 
 25.20  approved the plan; 
 25.21     (3) a municipality affected by the plan has estimated the 
 25.22  cost to it of wastewater treatment or stormwater projects 
 25.23  necessary to comply with the point source wasteload allocation; 
 25.24     (4) the Pollution Control Agency has approved the cost 
 25.25  estimate; and 
 25.26     (5) the authority has determined that the additional 
 25.27  financing necessary to complete the project has been committed 
 25.28  from other sources. 
 25.29     Subd. 5.  [GRANT DISBURSEMENT.] Disbursement of a grant 
 25.30  shall be made for eligible project costs as incurred by the 
 25.31  municipality and in accordance with a project financing 
 25.32  agreement and applicable state and federal laws and rules 
 25.33  governing the payments. 
 25.34     Sec. 14.  [APPROPRIATIONS.] 
 25.35     Subdivision 1.  [GENERAL PROVISIONS.] The appropriations in 
 25.36  this section are from the environmental fund and are available 
 26.1   for the fiscal years ending June 30, 2006, and June 30, 2007.  
 26.2   Any money remaining after the first year of the biennium is 
 26.3   available for the second year.  Appropriations in this section 
 26.4   that are encumbered under contract, including grant contract, on 
 26.5   or before June 30, 2007, are available until June 30, 2009. 
 26.6      Subd. 2.  [DEPARTMENT OF REVENUE; FEE COLLECTION 
 26.7   COSTS.] $38,000 in fiscal year 2006 and $31,000 in fiscal year 
 26.8   2007 are appropriated to the Department of Revenue to pay the 
 26.9   costs of collection and administration of the clean water fees 
 26.10  imposed in Minnesota Statutes, section 114D.40. 
 26.11     Subd. 3.  [POLLUTION CONTROL AGENCY.] The following amounts 
 26.12  are appropriated to the Pollution Control Agency for the 
 26.13  purposes stated: 
 26.14     (1) $1,000,000 in fiscal year 2006 is to assist counties in 
 26.15  developing the list required under Minnesota Statutes, section 
 26.16  114D.40, subdivision 4, paragraph (e), of persons subject to 
 26.17  clean water fees under Minnesota Statutes, section 114D.40, 
 26.18  subdivision 3, paragraphs (f) and (g); 
 26.19     (2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal 
 26.20  year 2007 are for statewide assessment of surface water quality 
 26.21  and trends; of these amounts, up to $1,010,000 in fiscal year 
 26.22  2006 and $1,960,000 in fiscal year 2007 are available for grants 
 26.23  or contracts to support citizen monitoring of surface waters; 
 26.24  and 
 26.25     (3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal 
 26.26  year 2007 are to develop TMDL's for waters listed on the United 
 26.27  States Environmental Protection Agency approved 2004 impaired 
 26.28  waters list; of this appropriation, up to $384,950 in fiscal 
 26.29  year 2006 and $1,118,750 in fiscal year 2007 are available for 
 26.30  grants or contracts to develop TMDL's. 
 26.31     Subd. 4.  [AGRICULTURE DEPARTMENT.] The following amounts 
 26.32  are appropriated to the Department of Agriculture for the 
 26.33  purposes stated: 
 26.34     (1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal 
 26.35  year 2007 are for the agricultural best management practices 
 26.36  loan program under Minnesota Statutes, section 17.117; of these 
 27.1   amounts, $200,000 in fiscal year 2006 and $2,100,000 in fiscal 
 27.2   year 2007 are available for pass-through to local governments 
 27.3   and lenders for low-interest loans; 
 27.4      (2) $350,000 in fiscal year 2006 and $800,000 in fiscal 
 27.5   year 2007 are to expand technical assistance to producers and 
 27.6   conservation professionals on nutrient and pasture management; 
 27.7   target practices to sources of water impairments; coordinate 
 27.8   federal and state farm conservation programs to fully utilize 
 27.9   federal conservation funds; and expand conservation planning 
 27.10  assistance for producers; of these amounts, $50,000 in fiscal 
 27.11  year 2006 and $210,000 in fiscal year 2007 are available for 
 27.12  grants or contracts to develop nutrient and conservation 
 27.13  planning assistance information materials; and 
 27.14     (3) $100,000 in fiscal year 2006 and $800,000 in fiscal 
 27.15  year 2007 are for research, evaluation, and effectiveness 
 27.16  monitoring of agricultural practices in restoring impaired 
 27.17  waters; of these amounts, $600,000 in fiscal year 2007 is 
 27.18  available for grants or contracts for research, evaluations, and 
 27.19  effectiveness monitoring of agricultural practices in restoring 
 27.20  impaired waters, including on-farm demonstrations. 
 27.21     Subd. 5.  [BOARD OF WATER AND SOIL RESOURCES.] The 
 27.22  following amounts are appropriated to the Board of Water and 
 27.23  Soil Resources for restoration and prevention actions as 
 27.24  described in Minnesota Statutes, section 114D.20, subdivisions 6 
 27.25  and 7: 
 27.26     (1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal 
 27.27  year 2007 are for targeted nonpoint restoration cost-share and 
 27.28  incentive payments; of these amounts, up to $450,000 in fiscal 
 27.29  year 2006 and $5,450,000 in fiscal year 2007 are available for 
 27.30  grants to soil and water conservation districts through the 
 27.31  state cost-share program authorized under Minnesota Statutes, 
 27.32  section 103C.501; 
 27.33     (2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal 
 27.34  year 2007 are for targeted nonpoint technical and engineering 
 27.35  assistance for restoration activities; of these amounts, up to 
 27.36  $412,000 in fiscal year 2006 and $3,250,000 in fiscal year 2007 
 28.1   are available for grants to soil and water conservation 
 28.2   districts, watershed management organizations, or counties to 
 28.3   support implementation of nonpoint restoration activities; 
 28.4      (3) $200,000 in fiscal year 2007 is for reporting and 
 28.5   evaluation of applied soil and water conservation practices; 
 28.6      (4) $2,400,000 in fiscal year 2007 is for grants to 
 28.7   counties for implementation of county individual sewage 
 28.8   treatment systems programs through the local water resources 
 28.9   protection and management program under Minnesota Statutes, 
 28.10  section 103B.3369; 
 28.11     (5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal 
 28.12  year 2007 are for base and challenge grants to support nonpoint 
 28.13  source protection activities related to lake and river 
 28.14  protection and management through the local water resources 
 28.15  protection and management program under Minnesota Statutes, 
 28.16  section 103B.3369; and 
 28.17     (6) $2,400,000 in fiscal year 2007 is for grants to soil 
 28.18  and water conservation districts for streambank, stream channel, 
 28.19  lakeshore, and roadside protection and restoration projects 
 28.20  through the state-cost share program under Minnesota Statutes, 
 28.21  section 103C.501. 
 28.22     Subd. 6.  [DEPARTMENT OF NATURAL RESOURCES.] The following 
 28.23  amounts are appropriated to the Department of Natural Resources 
 28.24  for the purposes stated:  
 28.25     (1) $280,000 in fiscal year 2006 and $430,000 in fiscal 
 28.26  year 2007 are for statewide assessment of surface water quality 
 28.27  and trends; and 
 28.28     (2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal 
 28.29  year 2007 are for restoration of impaired waters and actions to 
 28.30  prevent waters from becoming impaired; of these amounts, up to 
 28.31  $1,700,000 in fiscal year 2007 is available for grants and 
 28.32  contracts for forest stewardship planning and implementation, 
 28.33  and for research and monitoring. 
 28.34     Subd. 7.  [PUBLIC FACILITIES AUTHORITY.] $4,400,000 in 
 28.35  fiscal year 2006 and $44,015,000 in fiscal year 2007 are 
 28.36  appropriated to the Public Facilities Authority; of these 
 29.1   amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in 
 29.2   fiscal year 2007 are for deposit in the clean water legacy 
 29.3   capital improvements fund for grants under Minnesota Statutes, 
 29.4   section 446A.073; $4,582,000 in fiscal year 2007 is for deposit 
 29.5   in the small community wastewater treatment fund for loans under 
 29.6   Minnesota Statutes, section 446A.074; $....... is for total 
 29.7   maximum daily load grants under Minnesota Statutes, section 
 29.8   446A.075; and $22,433,000 in fiscal year 2007 is for deposit in 
 29.9   the water pollution control revolving fund under Minnesota 
 29.10  Statutes, section 446A.07, for wastewater treatment and storm 
 29.11  water projects.  Money appropriated under this subdivision does 
 29.12  not cancel and is available until expended. 
 29.13     Sec. 15.  [REPEALER.] 
 29.14     Minnesota Statutes 2004, section 103C.311, subdivisions 1 
 29.15  and 2, are repealed.