1.1 	A bill for an act
1.2 	relating to appropriations; appropriating money and supplementing 
1.3 	appropriations for environment and natural resources; providing for temporary 
1.4 	state park permits for towed vehicles; modifying state park permit requirements 
1.5 	and fees; providing for state forest user fees; providing for land donor appraisal 
1.6 	reimbursement; providing for acquisition of land for certain facilities; modifying 
1.7 	certain definitions; modifying forest services provided to private owners; 
1.8 	modifying the State Timber Act; eliminating the requirement for a comprehensive 
1.9 	forest resource management plan; providing for disposition of certain land sale 
1.10 	receipts; modifying noise standard exemptions; extending certain deadlines; 
1.11 	modifying application of storm water rules; establishing state policy for purchase 
1.12 	of hybrid vehicles; granting certain authority to the Lower Minnesota River 
1.13 	Watershed District; creating the Clean Water Legacy Act; creating grant and loan 
1.14 	programs; modifying provisions for cost-sharing contracts for erosion control 
1.15 	and water management; requiring reports; amending Minnesota Statutes 2004, 
1.16 	sections 84.085, subdivision 1; 85.052, subdivision 4; 85.053, by adding a 
1.17 	subdivision; 85.054, by adding subdivisions; 88.79, subdivision 1; 90.14; 90.151, 
1.18 	subdivisions 1, 6, by adding a subdivision; 103C.501, subdivision 5; 103I.005, 
1.19 	subdivision 9; 116.07, subdivision 2a; Minnesota Statutes 2005 Supplement, 
1.20 	sections 85.053, subdivision 2; 85.055, subdivision 1; 116.182, subdivision 2;  
1.21 	Laws 2003, chapter 128, article 1, section 165; Laws 2005, First Special Session 
1.22 	chapter 1, article 2, section 11, subdivisions 5, 10; proposing coding for new law 
1.23 	in Minnesota Statutes, chapters 85; 89; 90; 446A; proposing coding for new 
1.24 	law as Minnesota Statutes, chapter 114D; repealing Minnesota Statutes 2004, 
1.25 	section 89.011, subdivisions 1, 2, 3, 6.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	ARTICLE 1
1.28 	ENVIRONMENT AND NATURAL RESOURCES 
1.29 	APPROPRIATIONS AND POLICY CHANGES

1.30 	Section 1. SUPPLEMENTAL APPROPRIATIONS.
 1.31 	The appropriations in this act are added to or, if shown in parentheses, subtracted 
1.32 	from the appropriations enacted into law by the legislature in 2005, or other specified law, 
2.1 	to the named agencies and for the specified programs or activities. The sums shown 
2.2 	are appropriated from the general fund, or another named fund, to be available for the 
2.3 	fiscal years indicated; 2006 is the fiscal year ending June 30, 2006, 2007 is the fiscal year 
2.4 	ending June 30, 2007, and the biennium is fiscal years 2006 and 2007. Supplementary 
2.5 	appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, 
2.6 	are effective the day following final enactment.

2.7				APPROPRIATIONS
	
2.8				Available for the Year
	
2.9				Ending June 30
	
2.10					2006
		2007

2.11	Sec. 2. NATURAL RESOURCES

2.12	Subdivision 1.Total Appropriation
 	$
	88,000
	$
	1,493,000

2.13	Summary by Fund
	
2.14	General
	88,000
	443,000
	
2.15	Natural Resources
	-0-
	1,050,000
	
2.16 	The amounts that may be spent for each 
2.17 	activity are specified in the following 
2.18 	subdivisions.

2.19	Subd. 2.Bovine Tuberculosis
 					
2.20 	$88,000 in 2006 and $132,000 in 2007 are 
2.21 	for bovine tuberculosis surveillance and 
2.22 	diagnosis to diminish the risk of disease 
2.23 	transmission in domestic livestock.

2.24	Subd. 3.All-Terrain Vehicle Trails
 					
2.25 	$400,000 in 2007 from the all-terrain vehicle 
2.26 	account in the natural resources fund is for 
2.27 	the all-terrain vehicle grant-in-aid program.
2.28 	$200,000 in 2007 from the all-terrain vehicle 
2.29 	account in the natural resources fund is for 
2.30 	rehabilitation and development of all-terrain 
2.31 	vehicle trails.
3.1 	$250,000 in 2007 from the all-terrain vehicle 
3.2 	account in the natural resources fund to plan 
3.3 	and develop the North Shore Trail from 
3.4 	Normana Road in St. Louis County to the 
3.5 	Moose Walk All-Terrain Vehicle Trail in 
3.6 	Lake County for all-terrain vehicle use. This 
3.7 	appropriation does not cancel but is available 
3.8 	until expended.

3.9	Subd. 4.Invasive Species
 					
3.10 	$261,000 in 2007 for prevention and control 
3.11 	of harmful invasive species. 

3.12
3.13	Subd.  5.Minnesota Shooting Sports 
Education Center
 					
3.14 	$50,000 in 2007 for the operation of the 
3.15 	Minnesota Shooting Sports Education 
3.16 	Center. The commissioner may make direct 
3.17 	expenditures for the operation of the center 
3.18 	or contract with another entity to operate 
3.19 	the center. This appropriation is available 
3.20 	only to the extent matched by at least $1 of 
3.21 	nonstate money from gifts or grants for each 
3.22 	$2 of state money.

3.23	Subd. 6.Corps Campsites
 					
3.24 	$200,000 in 2007 is from the state park 
3.25 	account in the natural resources fund for 
3.26 	operation of recreational sites under the 
3.27 	jurisdiction of the U.S. Army Corps of 
3.28 	Engineers at Big Sandy Lake, Leech Lake, 
3.29 	Gull Lake, Cross Lake, Winnibigoshish 
3.30 	Lake, and Pokegama Lake. These sites 
3.31 	shall be managed as state recreation areas in 
3.32 	accordance with section 86A.05, subdivision 
3.33 	3.

4.1
4.2	Sec. 3. LEGISLATIVE COMMISSION ON 
MINNESOTA RESOURCES

4.3
4.4	Subdivision 1.Conservation and Preservation 
Plan
 					
4.5 	$300,000 in 2007 from the environmental 
4.6 	trust fund to the Legislative Commission 
4.7 	on Minnesota Resources, or its successor 
4.8 	commission, for development of a 
4.9 	conservation and preservation plan 
4.10 	that provides a long-term, statewide, 
4.11 	comprehensive, and strategic effort based on 
4.12 	science to guide decision making.

4.13	Subd. 2.Administration
 					
4.14 	(a) $550,000 in 2007 is from the environment 
4.15 	and natural resources trust fund to the 
4.16 	Legislative-Citizen Commission on 
4.17 	Minnesota Resources for administration, 
4.18 	as provided in Minnesota Statutes, section 
4.19 	116P.09, subdivision 5.
4.20 	(b) The fiscal year 2006 administrative 
4.21 	budget under Laws 2005, First Special 
4.22 	Session chapter 1, article 2, section 11, 
4.23 	subdivision 3, is for the Legislative 
4.24 	Commission on Minnesota Resources or 
4.25 	its successor commission, as provided 
4.26 	in Minnesota Statutes, section 15.039, 
4.27 	subdivision 6. 

4.28 	Sec. 4. Minnesota Statutes 2004, section 84.085, subdivision 1, is amended to read:
4.29 		Subdivision 1.Authority. (a) The commissioner of natural resources may accept for 
4.30 	and on behalf of the state any gift, bequest, devise, or grants of lands or interest in lands or 
4.31 	personal property of any kind or of money tendered to the state for any purpose pertaining 
4.32 	to the activities of the department or any of its divisions. Any money so received is hereby 
5.1 	appropriated and dedicated for the purpose for which it is granted. Lands and interests in 
5.2 	lands so received may be sold or exchanged as provided in chapter 94.
5.3 	(b) When the commissioner of natural resources accepts lands or interests in land, 
5.4 	the commissioner may reimburse the donor for costs incurred to obtain an appraisal needed 
5.5 	for tax reporting purposes. If the state pays the donor for a portion of the value of the 
5.6 	lands or interests in lands that are donated, the reimbursement for appraisal costs shall not 
5.7 	exceed $1,500. If the donor receives no payment from the state for the lands or interests in 
5.8 	lands that are donated, the reimbursement for appraisal costs shall not exceed $5,000.
5.9 	(b)(c) The commissioner of natural resources, on behalf of the state, may accept and 
5.10 	use grants of money or property from the United States or other grantors for conservation 
5.11 	purposes not inconsistent with the laws of this state. Any money or property so received 
5.12 	is hereby appropriated and dedicated for the purposes for which it is granted, and shall 
5.13 	be expended or used solely for such purposes in accordance with the federal laws and 
5.14 	regulations pertaining thereto, subject to applicable state laws and rules as to manner 
5.15 	of expenditure or use providing that the commissioner may make subgrants of any 
5.16 	money received to other agencies, units of local government, private individuals, private 
5.17 	organizations, and private nonprofit corporations. Appropriate funds and accounts shall be 
5.18 	maintained by the commissioner of finance to secure compliance with this section.
5.19 	(c) (d) The commissioner may accept for and on behalf of the permanent school fund 
5.20 	a donation of lands, interest in lands, or improvements on lands. A donation so received 
5.21 	shall become state property, be classified as school trust land as defined in section  92.025, 
5.22 	and be managed consistent with section  127A.31. 

5.23 	Sec. 5. [85.0145] ACQUISITION OF LAND FOR FACILITIES.
5.24 	The commissioner of natural resources may acquire interests in land by gift, 
5.25 	purchase, or lease for facilities outside the boundaries of state parks, state recreation areas, 
5.26 	or state waysides that are needed for the management of state parks, state recreation areas, 
5.27 	or state waysides established under sections 85.012 and 85.013.

5.28 	Sec. 6. Minnesota Statutes 2004, section 85.052, subdivision 4, is amended to read:
5.29 		Subd. 4.Deposit of fees. (a) Fees paid for providing contracted products and 
5.30 	services within a state park, state recreation area, or wayside, and for special state park 
5.31 	uses under this section shall be deposited in the natural resources fund and credited to a 
5.32 	state parks account.
6.1 	(b) Gross receipts derived from sales, rentals, or leases of natural resources within 
6.2 	state parks, recreation areas, and waysides, other than those on trust fund lands, must be 
6.3 	deposited in the state treasury and credited to the general fund.
6.4 	(c) Notwithstanding paragraph (b), the gross receipts from the sale of stockpile 
6.5 	materials, aggregate, or other earth materials from the Iron Range Off-Highway Vehicle 
6.6 	Recreation Area shall be deposited in the dedicated accounts in the natural resource fund 
6.7 	from which the purchase of the stockpile material was made.

6.8 	Sec. 7. Minnesota Statutes 2005 Supplement, section 85.053, subdivision 2, is 
6.9 	amended to read:
6.10 		Subd. 2.Requirement. Except as provided in section 85.054, a motor vehicle 
6.11 	may not enter a state park, state recreation area, or state wayside over 50 acres in area, 
6.12 	without a state park permit issued under this section. Except for vehicles permitted under 
6.13 	subdivision subdivisions 7, paragraph (a), clause (2), and 8,  the state park permit must be 
6.14 	affixed to the lower right corner windshield of the motor vehicle and must be completely 
6.15 	affixed by its own adhesive to the windshield, or the commissioner may, by written order, 
6.16 	provide an alternative means to display and validate annual permits.

6.17 	EFFECTIVE DATE. This section is effective January 1, 2007.

6.18 	Sec. 8. Minnesota Statutes 2004, section 85.053, is amended by adding a subdivision 
6.19 	to read:
6.20 		Subd. 8.Towed vehicles. The commissioner shall prescribe and issue a temporary 
6.21 	permit for a vehicle that enters a park towed by a vehicle used for camping. The temporary 
6.22 	permit shall be issued with the camping permit and allows the towed vehicle to be driven 
6.23 	in state parks until the camping permit expires.

6.24 	EFFECTIVE DATE. This section is effective January 1, 2007.

6.25 	Sec. 9. Minnesota Statutes 2004, section 85.054, is amended by adding a subdivision 
6.26 	to read:
6.27 		Subd. 12.Soudan Underground Mine State Park. A state park permit is not 
6.28 	required and a fee may not be charged for motor vehicle entry or parking at the visitor 
6.29 	parking area of Soudan Underground Mine State Park.

6.30 	EFFECTIVE DATE. This section is effective January 1, 2007.

7.1 	Sec. 10. Minnesota Statutes 2004, section 85.054, is amended by adding a subdivision 
7.2 	to read:
7.3 		Subd. 13.Sunday church services. A state park permit is not required and a fee 
7.4 	may not be charged for motor vehicle entry to attend a Sunday church service held in a 
7.5 	state park if the motor vehicle and occupants depart the park within two hours of entry.

7.6 	EFFECTIVE DATE. This section is effective January 1, 2007.

7.7 	Sec. 11. Minnesota Statutes 2005 Supplement, section 85.055, subdivision 1, is 
7.8 	amended to read:
7.9 		Subdivision 1.Fees. The fee for state park permits for:
7.10 	(1) an annual use of state parks is $25;
7.11 	(2) a second vehicle state park permit is $18;
7.12 	(3) a state park permit valid for one day is $7 $5;
7.13 	(4) a daily vehicle state park permit for groups is $5 $3;
7.14 	(5) an annual permit for motorcycles is $20;
7.15 	(6) an employee's state park permit is without charge; and
7.16 	(6) (7) a state park permit for handicapped disabled persons under section  85.053, 
7.17 	subdivision 7, clauses (1) and (2), is $12. 
7.18 	The fees specified in this subdivision include any sales tax required by state law.

7.19 	EFFECTIVE DATE. This section is effective January 1, 2007.

7.20 	Sec. 12. Minnesota Statutes 2004, section 88.79, subdivision 1, is amended to read:
7.21 		Subdivision 1.Employment of competent foresters; service to private owners.
 7.22 	The commissioner of natural resources may employ competent foresters to furnish owners 
7.23 	of forest lands within the state of Minnesota owning respectively not exceedingwho own 
7.24 	not more than 1,000 acres of suchforest land, forest management services consisting of:
7.25 	(1) advice in management and protection of timber, including written stewardship 
7.26 	and forest management plans;
7.27 	(2) selection and marking of timber to be cut,;
7.28 	(3) measurement of products,;
7.29 	(4) aid in marketing harvested products,;
7.30 	(5) provision of tree-planting equipment; and 
7.31 	(6) such other services as the commissioner of natural resources deems necessary or 
7.32 	advisable to promote maximum sustained yield of timber upon such forest lands.

8.1 	Sec. 13. [89.22] USES OF STATE FOREST LANDS; FEES.
8.2 		Subdivision 1.Establishing fees. Notwithstanding section 16A.1283, the 
8.3 	commissioner may, by written order published in the State Register, establish fees 
8.4 	providing for the use of state forest lands, including motorcycle, snowmobile, and sports 
8.5 	car rallies, races, or enduros; orienteering trials; group campouts that do not occur at 
8.6 	designated group camps; dog sled races; dog trials; large horse trail rides; and commercial 
8.7 	uses.  The fees are not subject to the rulemaking provisions of chapter 14 and section 
8.8 	14.386 does not apply. 
8.9 		Subd. 2.Receipts to special revenue fund. Fees collected under subdivision 1 shall 
8.10 	be credited to the special revenue fund and are annually appropriated to the commissioner 
8.11 	for costs incurred attributable to the uses for which the fees were imposed.

8.12 	Sec. 14. Minnesota Statutes 2004, section 90.14, is amended to read:
8.13 	90.14 AUCTION SALE PROCEDURE.
8.14 	(a) All state timber shall be offered and sold by the same unit of measurement as it 
8.15 	was appraised. The sale shall be made to the person who (1) bids the highest price for all 
8.16 	the several kinds of timber as advertised, or (2) if unsold at public auction, to the person 
8.17 	who purchases at any subsequent sale authorized under section 90.101, subdivision 1. No 
8.18 	tract shall be sold to any person other than the purchaser in whose name the bid was made.
8.19 	The commissioner may refuse to approve any and all bids received and cancel a sale of 
8.20 	state timber for good and sufficient reasons.
8.21 	(b) The purchaser at any sale of timber shall, immediately upon the approval of the 
8.22 	bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under 
8.23 	section 90.101, subdivision 1, pay to the commissioner a down payment of 15 percent 
8.24 	of the appraised value. In case any purchaser fails to make such payment, the purchaser 
8.25 	shall be liable therefor to the state in a civil action, and the commissioner may reoffer the 
8.26 	timber for sale as though no bid or sale under section 90.101, subdivision 1, therefor 
8.27 	had been made.
8.28 	(c) In lieu of the scaling of state timber required by this chapter, a purchaser of 
8.29 	state timber may, at the time of payment by the purchaser to the commissioner of 15 
8.30 	percent of the appraised value, elect in writing on a form prescribed by the attorney 
8.31 	general to purchase a permit based solely on the appraiser's estimate of the volume of 
8.32 	timber described in the permit, provided that the commissioner has expressly designated 
8.33 	the availability of such option for that tract on the list of tracts available for sale as 
8.34 	required under section 90.101. A purchaser who elects in writing on a form prescribed 
8.35 	by the attorney general to purchase a permit based solely on the appraiser's estimate of 
9.1 	the volume of timber described on the permit does not have recourse to the provisions 
9.2 	of section 90.281.
9.3 	(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall 
9.4 	be awarded to the high bidder, who shall pay to the commissioner a down payment of 15 
9.5 	percent of the appraised value within ten business days of receiving a written award 
9.6 	notice. If a purchaser fails to make the down payment, the purchaser is liable for the down 
9.7 	payment to the state and the commissioner may offer the timber for sale to the next highest 
9.8 	bidder as though no higher bid had been made.
9.9 	(e) Except as otherwise provided by law, at the time the purchaser signs a permit 
9.10 	issued under section 90.151, the purchaser shall make a bid guarantee payment to the 
9.11 	commissioner in an amount equal to 15 percent of the total purchase price of the permit 
9.12 	less the down payment amount required by paragraph (b). If the bid guarantee payment is 
9.13 	not submitted with the signed permit, no harvesting may occur, the permit cancels, and the 
9.14 	down payment for timber forfeits to the state. The bid guarantee payment forfeits to the 
9.15 	state if the purchaser and successors in interest fail to execute an effective permit.

9.16 	Sec. 15. [90.145] PURCHASER QUALIFICATIONS AND REGISTRATION.
9.17 		Subdivision 1.Purchaser qualifications. (a) In addition to any other requirements 
9.18 	imposed by this chapter, the purchaser of a state timber permit issued under section 90.151 
9.19 	must meet the requirements in paragraphs (b) to (d).
9.20 	(b) The purchaser and the purchaser's agents, employees, subcontractors, and 
9.21 	assigns must comply with general industry safety standards for logging adopted by the 
9.22 	commissioner of labor and industry under chapter 182. The commissioner of natural 
9.23 	resources shall require a purchaser to provide proof of compliance with the general 
9.24 	industry safety standards. 
9.25 	(c) The purchaser and the purchaser's agents, subcontractors, and assigns must 
9.26 	comply with the mandatory insurance requirements of chapter 176. The commissioner 
9.27 	shall require a purchaser to provide a copy of the proof of insurance required by section 
9.28 	176.130 before the start of harvesting operations on any permit.
9.29 	(d) Before the start of harvesting operations on any permit, the purchaser must 
9.30 	certify that a foreperson or other designated employee who has a current certificate of 
9.31 	completion from the Minnesota logger education program (MLEP), the Wisconsin Forest 
9.32 	Industry Safety and Training Alliance (FISTA), or any similar program acceptable to the 
9.33 	commissioner, is supervising active logging operations.
9.34 		Subd. 2.Purchaser preregistration. To facilitate the sale of permits issued under 
9.35 	section 90.151, the commissioner may establish a purchaser preregistration system. 
10.1 	Any system implemented by the commissioner shall be limited in scope to only that 
10.2 	information that is required for the efficient administration of the purchaser qualification 
10.3 	provisions of this chapter and shall conform with the requirements of chapter 13.

10.4 	Sec. 16. Minnesota Statutes 2004, section 90.151, subdivision 1, is amended to read:
10.5 		Subdivision 1.Issuance; expiration. (a) Following receipt of the down payment 
10.6 	for state timber required under section 90.14 or 90.191, the commissioner shall issue a 
10.7 	numbered permit to the purchaser, in a form approved by the attorney general, by the 
10.8 	terms of which the purchaser shall be authorized to enter upon the land, and to cut and 
10.9 	remove the timber therein described as designated for cutting in the report of the state 
10.10 	appraiser, according to the provisions of this chapter. The permit shall be correctly dated 
10.11 	and executed by the commissioner and signed by the purchaser. If a permit is not signed 
10.12 	by the purchaser within 60 days from the date of purchase, the permit cancels and the 
10.13 	down payment for timber required under section 90.14 forfeits to the state.
10.14 	(b) The permit shall expire no later than five years after the date of sale as the 
10.15 	commissioner shall specify or as specified under section 90.191, and the timber shall 
10.16 	be cut within the time specified therein. All cut timber, equipment, and buildings not 
10.17 	removed from the land within 90 days after expiration of the permit shall become the 
10.18 	property of the state.
10.19 	(c) The commissioner may grant an additional period of time not to exceed 120 days 
10.20 	for the removal of cut timber, equipment, and buildings upon receipt of such request by 
10.21 	the permit holder for good and sufficient reasons. The commissioner may grant a second 
10.22 	period of time not to exceed 120 days for the removal of cut timber, equipment, and 
10.23 	buildings upon receipt of a request by the permit holder for hardship reasons only.
10.24 	(d) No permit shall be issued to any person other than the purchaser in whose name 
10.25 	the bid was made.

10.26 	Sec. 17. Minnesota Statutes 2004, section 90.151, subdivision 6, is amended to read:
10.27 		Subd. 6.Notice and approval required. The permit shall provide that the permit 
10.28 	holder shall not start cutting any state timber nor clear building sites nor logging roads until 
10.29 	the commissioner has been notified and has given prior approval to such cutting operations.
10.30 	Approval shall not be granted until the permit holder has completed a presale conference 
10.31 	with the state appraiser designated to supervise the cutting. The permit holder shall also 
10.32 	give prior notice whenever permit operations are to be temporarily halted, whenever 
10.33 	permit operations are to be resumed, and when permit operations are to be completed.

11.1 	Sec. 18. Minnesota Statutes 2004, section 90.151, is amended by adding a subdivision 
11.2 	to read:
11.3 		Subd. 16.Liquidated damages. The permit may include a schedule of liquidated 
11.4 	damage charges for breach of permit terms by the permit holder. The damage charges shall 
11.5 	be limited to amounts that are reasonable in light of the anticipated or actual harm caused 
11.6 	by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of 
11.7 	otherwise obtaining an adequate remedy.

11.8 	Sec. 19. Minnesota Statutes 2004, section 103I.005, subdivision 9, is amended to read:
11.9 		Subd. 9.Exploratory boring. "Exploratory boring" means a surface drilling done 
11.10 	to explore or prospect for oil, natural gas, apatite, diamonds, graphite, gemstones, kaolin 
11.11 	clay, and metallic minerals, including iron, copper, zinc, lead, gold, silver, titanium, 
11.12 	vanadium, nickel, cadmium, molybdenum, chromium, manganese, cobalt, zirconium, 
11.13 	beryllium, thorium, uranium, aluminum, platinum, palladium, radium, tantalum, tin, and 
11.14 	niobium, and a drilling or boring for petroleum.

11.15 	Sec. 20. Minnesota Statutes 2004, section 116.07, subdivision 2a, is amended to read:
11.16 		Subd. 2a.Exemptions from standards. No standards adopted by any state agency 
11.17 	for limiting levels of noise in terms of sound pressure which may occur in the outdoor 
11.18 	atmosphere shall apply to (1) segments of trunk highways constructed with federal 
11.19 	interstate substitution money, provided that all reasonably available noise mitigation 
11.20 	measures are employed to abate noise, (2) an existing or newly constructed segment of a 
11.21 	highway, provided that all reasonably available noise mitigation measures, as approved by 
11.22 	the commissioners of the Department of Transportation and Pollution Control Agency, are 
11.23 	employed to abate noise, (3) except for the cities of Minneapolis and St. Paul, an existing 
11.24 	or newly constructed segment of a road, street, or highway under the jurisdiction of a road 
11.25 	authority of a town, statutory or home rule charter city, or county, except for roadways for 
11.26 	which full control of access has been acquired, (4) skeet, trap or shooting sports clubs, 
11.27 	or (5) motor vehicle race events conducted at a facility specifically designed for that 
11.28 	purpose that was in operation on or before July 1, 1983. 1996. Motor vehicle race events 
11.29 	exempted from state standards under this subdivision are exempt from claims based on 
11.30 	noise brought under section 561.01 and chapters 116B and 116D. Nothing herein shall 
11.31 	prohibit a local unit of government or a public corporation with the power to make rules 
11.32 	for the government of its real property from regulating the location and operation of 
11.33 	skeet, trap or shooting sports clubs, or motor vehicle race events conducted at a facility 
11.34 	specifically designed for that purpose that was in operation on or before July 1, 1983 1996.

12.1 	Sec. 21. Laws 2003, chapter 128, article 1, section 165, is amended to read:
12.2 	Sec. 165.  ISTS PILOT PROGRAM.
12.3 	
12.4 	The Pollution Control Agency shall, in conjunction with the  association of 
12.5 	Minnesota counties, designate three cooperating  counties with waterbodies listed as 
12.6 	impaired by fecal coliform  bacteria, and within designated counties shall:  
12.7 	
12.8 	(1) by July 1, 2007 2008, complete an inventory of properties  with individual 
12.9 	sewage treatment systems that are an imminent  threat to public health or safety due to 
12.10 	surface water  discharges of untreated sewage, and the inventory of properties  may be 
12.11 	phased over the period of the pilot project; and  
12.12 	
12.13 	(2) require compliance under the applicable requirements of  this section by May 1, 
12.14 	2008 2009.  The pollution control agency may  utilize cooperative agreements with the 
12.15 	three pilot counties to  meet the requirements of clauses (1) and (2).  

12.16 	Sec. 22. Laws 2005, First Special Session chapter 1, article 2, section 11, subdivision 
12.17 	5, is amended to read:

12.18							5,038,000
	
12.19	Subd.  5.Fish and Wildlife Habitat
 		5,038,000
		6,038,000

12.20	Summary by Fund
	
12.21				5,038,000
	
12.22	Trust Fund
		5,038,000
	6,038,000

12.23
12.24	(a) Restoring Minnesota's Fish and Wildlife 
Habitat Corridors-Phase III  
	
12.25 	$2,031,000 the first year and  $2,031,000
12.26 	$3,031,000 the second year are from the  trust 
12.27 	fund to the commissioner of  natural resources 
12.28 	for the third  biennium for acceleration of 
12.29 	agency  programs and cooperative agreements  
12.30 	with Pheasants Forever, Minnesota Deer  
12.31 	Hunters Association, Ducks Unlimited,  
12.32 	Inc., National Wild Turkey Federation,  
12.33 	the Nature Conservancy, Minnesota Land  
13.1 	Trust, the Trust for Public Land,  Minnesota 
13.2 	Valley National Wildlife  Refuge Trust, Inc., 
13.3 	U.S. Fish and  Wildlife Service, Red Lake 
13.4 	Band of  Chippewa, Leech Lake Band of 
13.5 	Chippewa,  Fond du Lac Band of Chippewa,  
13.6 	USDA-Natural Resources Conservation  
13.7 	Service, and the Board of Water and  Soil 
13.8 	Resources to plan, restore, and  acquire 
13.9 	fragmented landscape corridors  that connect 
13.10 	areas of quality habitat  to sustain fish, 
13.11 	wildlife, and plants. To the extent possible, 
13.12 	projects funded shall meet the purposes 
13.13 	of Minnesota Statutes, section 114D.05.
13.14 	Expenditures are limited to the 11  project 
13.15 	areas as defined in the work  program.  
13.16 	Land acquired with this  appropriation must 
13.17 	be sufficiently  improved to meet at least 
13.18 	minimum  habitat and facility management  
13.19 	standards as determined by the  commissioner 
13.20 	of natural resources.  This appropriation may 
13.21 	not be used for  the purchase of residential 
13.22 	structures,  unless expressly approved in the 
13.23 	work  program.  Any land acquired in fee  title 
13.24 	by the commissioner of natural  resources 
13.25 	with money from this  appropriation must be 
13.26 	designated:  (1)  as an outdoor recreation unit 
13.27 	under  Minnesota Statutes, section 86A.07; 
13.28 	or  (2) as provided in Minnesota Statutes,  
13.29 	sections 89.018, subdivision 2,  paragraph (a); 
13.30 	97A.101; 97A.125;  97C.001; and 97C.011.  
13.31 	The commissioner  may similarly designate 
13.32 	any lands  acquired in less than fee title.  This  
13.33 	appropriation is available until June  30, 2008, 
13.34 	at which time the project  must be completed 
13.35 	and final products  delivered, unless an earlier 
13.36 	date is  specified in the work program.  

14.1
14.2	(b) Metropolitan Area Wildlife  Corridors-Phase 
II
	
14.3 	$1,765,000 the first year and  $1,765,000 the 
14.4 	second year are from the  trust fund to the 
14.5 	commissioner of  natural resources for the 
14.6 	second  biennium for acceleration of agency  
14.7 	programs and cooperative agreements  with 
14.8 	the Trust for Public Land, Ducks  Unlimited, 
14.9 	Inc., Friends of the  Mississippi River, 
14.10 	Great River  Greening, Minnesota Land 
14.11 	Trust,  Minnesota Valley National Wildlife  
14.12 	Refuge Trust, Inc., Pheasants Forever,  Inc., 
14.13 	and Friends of the Minnesota  Valley for 
14.14 	the purposes of planning,  improving, and 
14.15 	protecting important  natural areas in the 
14.16 	metropolitan  region, as defined by Minnesota  
14.17 	Statutes, section 473.121, subdivision  2, 
14.18 	and portions of the surrounding  counties, 
14.19 	through grants, contracted  services, 
14.20 	conservation easements, and  fee acquisition.  
14.21 	Land acquired with  this appropriation 
14.22 	must be sufficiently  improved to meet at 
14.23 	least minimum  management standards as 
14.24 	determined by  the commissioner of natural 
14.25 	resources.  Expenditures are limited to the  
14.26 	identified project areas as defined in  the 
14.27 	work program.  This appropriation  may 
14.28 	not be used for the purchase of  residential 
14.29 	structures, unless  expressly approved in the 
14.30 	work  program.  Any land acquired in fee  title 
14.31 	by the commissioner of natural  resources 
14.32 	with money from this  appropriation must be 
14.33 	designated:  (1)  as an outdoor recreation unit 
14.34 	under  Minnesota Statutes, section 86A.07; 
14.35 	or  (2) as provided in Minnesota Statutes,  
15.1 	sections 89.018, subdivision 2,  paragraph (a); 
15.2 	97A.101; 97A.125;  97C.001; and 97C.011.  
15.3 	The commissioner  may similarly designate 
15.4 	any lands  acquired in less than fee title.  This  
15.5 	appropriation is available until June  30, 2008, 
15.6 	at which time the project  must be completed 
15.7 	and final products  delivered, unless an earlier 
15.8 	date is  specified in the work program.  

15.9	(c) Development of Scientific and Natural Areas 
	
15.10 	$67,000 the first year and $67,000 the  
15.11 	second year are from the trust fund to  the 
15.12 	commissioner of natural resources  to develop 
15.13 	and enhance lands designated  as scientific 
15.14 	and natural areas.  This  appropriation is 
15.15 	available until June  30, 2008, at which time 
15.16 	the project  must be completed and final 
15.17 	products  delivered, unless an earlier date is  
15.18 	specified in the work program.  

15.19	(d) Prairie Stewardship of Private Lands 
	
15.20 	$50,000 the first year and $50,000 the  
15.21 	second year are from the trust fund to  the 
15.22 	commissioner of natural resources  to develop 
15.23 	stewardship plans and  implement prairie 
15.24 	management on private  prairie lands on a 
15.25 	cost-share basis  with private or federal funds.  
15.26 	This  appropriation is available until June  
15.27 	30, 2008, at which time the project  must 
15.28 	be completed and final products  delivered, 
15.29 	unless an earlier date is  specified in the work 
15.30 	program.  

15.31
15.32	(e) Local Initiative Grants-Conservation  
Partners and Environmental Partnerships 
	
16.1 	$250,000 the first year and $250,000  the 
16.2 	second year are from the trust fund  to the 
16.3 	commissioner of natural  resources to provide 
16.4 	matching grants of  up to $20,000 to local 
16.5 	government and  private organizations for 
16.6 	enhancement,  restoration, research, and 
16.7 	education  associated with natural habitat and  
16.8 	environmental service projects.  Subdivision 
16.9 	16 applies to grants  awarded in the approved 
16.10 	work program.  This appropriation is 
16.11 	available until  June 30, 2008, at which time 
16.12 	the  project must be completed and final  
16.13 	products delivered, unless an earlier  date is 
16.14 	specified in the work program.  

16.15
16.16	(f) Minnesota ReLeaf Community Forest  
Development and Protection 
	
16.17 	$250,000 the first year and $250,000  the 
16.18 	second year are from the trust fund  to 
16.19 	the commissioner of natural  resources 
16.20 	for acceleration of the  agency program 
16.21 	and a cooperative  agreement with Tree 
16.22 	Trust to protect  forest resources, develop  
16.23 	inventory-based management plans, and  
16.24 	provide matching grants to communities  
16.25 	to plant native trees.  At least  $390,000 of 
16.26 	this appropriation must be  used for grants 
16.27 	to communities.  For  the purposes of this 
16.28 	paragraph, the  match must be a nonstate 
16.29 	contribution,  but may be either cash or 
16.30 	qualifying  in-kind.  This appropriation is  
16.31 	available until June 30, 2008, at which  time 
16.32 	the project must be completed and  final 
16.33 	projects delivered, unless an  earlier date is 
16.34 	specified in the work  program.  

17.1
17.2	(g) Integrated and Pheromonal Control of  
Common Carp 
	
17.3 	$275,000 the first year and $275,000  the 
17.4 	second year are from the trust fund  to the 
17.5 	University of Minnesota for the  second 
17.6 	biennium to research new options  for 
17.7 	controlling common carp.  This  appropriation 
17.8 	is available until June  30, 2009, at which 
17.9 	time the project  must be completed and final 
17.10 	products  delivered, unless an earlier date is  
17.11 	specified in the work program.  

17.12
17.13	(h) Biological Control of European Buckthorn  
and Garlic Mustard 
	
17.14 	$100,000 the first year and $100,000  the 
17.15 	second year are from the trust fund  to 
17.16 	the commissioner of natural  resources to 
17.17 	research potential insects  for biological 
17.18 	control of invasive  European buckthorn 
17.19 	species for the  second biennium and to 
17.20 	introduce and  evaluate insects for biological 
17.21 	control  of garlic mustard.  This appropriation  
17.22 	is available until June 30, 2008, at  which 
17.23 	time the project must be  completed and final 
17.24 	products delivered,  unless an earlier date is 
17.25 	specified in  the work program.  

17.26	(i) [Paragraph (i) was vetoed by the governor.] 

17.27 	Sec. 23. Laws 2005, First Special Session chapter 1, article 2, section 11, subdivision 
17.28 	10, is amended to read:

17.29	Subd.  10.Energy.
 		1,896,000
		1,896,000
	
17.30	 Summary by Fund
							
17.31	Trust Fund
		1,896,000
		1,896,000
			
18.1 	(a) Clean Energy Resource Teams and 
18.2 	Community Wind  Energy Rebate and 
18.3 	Financial Assistance Program
18.4 	$350,000 the first year and $350,000  the 
18.5 	second year are from the trust fund  to the 
18.6 	commissioner of commerce.  $300,000 of 
18.7 	this appropriation is to  provide technical 
18.8 	assistance to  implement cost-effective 
18.9 	conservation,  energy efficiency, and 
18.10 	renewable energy  projects.  $400,000 of this  
18.11 	appropriation is to assist two Minnesota 
18.12 	communities in developing  locally owned 
18.13 	wind energy projects by  offering financial 
18.14 	assistance and rebates. This appropriation 
18.15 	is available until June 30, 2009, at which 
18.16 	time the project must be completed and final 
18.17 	products delivered, unless an earlier date is 
18.18 	specified in the work program.
18.19 	(b) [Paragraph (b) was vetoed by the 
18.20 	governor.]
18.21 	(c) Manure Methane Digester Compatible 
18.22 	Wastes  and Electrical Generation
18.23 	$50,000 the first year and $50,000 the  
18.24 	second year are from the trust fund to  the 
18.25 	commissioner of agriculture to  research the 
18.26 	potential for a centrally  located, multifarm 
18.27 	manure digester and  the potential use of 
18.28 	compatible waste  streams with manure 
18.29 	digesters. 
18.30 	(d) Dairy Farm Digesters 
18.31 	$168,000 the first year and $168,000  the 
18.32 	second year are from the trust fund  to the 
18.33 	commissioner of natural  resources for an 
18.34 	agreement with the  Minnesota Project for a 
18.35 	pilot project  to evaluate anaerobic digester  
19.1 	technology on average size dairy farms  of 
19.2 	50 to 300 cows.  
19.3 	(e) Wind to Hydrogen Demonstration  
19.4 	$400,000 the first year and $400,000  the 
19.5 	second year are from the trust fund  to the 
19.6 	commissioner of natural  resources for an 
19.7 	agreement with the  University of Minnesota, 
19.8 	West Central  Research and Outreach Center, 
19.9 	to  develop a model community-scale  
19.10 	wind-to-hydrogen facility.  
19.11 	(f) Natural Gas Production from  Agricultural 
19.12 	Biomass 
19.13 	$50,000 the first year and $50,000 the  
19.14 	second year are from the trust fund to  the 
19.15 	commissioner of natural resources  for an 
19.16 	agreement with Sebesta Blomberg  and 
19.17 	Associates to demonstrate potential  natural 
19.18 	gas yield using anaerobic  digestion of blends 
19.19 	of chopped grasses  or crop residue with hog 
19.20 	manure and  determine optimum operating 
19.21 	conditions  for conversion to natural gas.  
19.22 	(g) Biomass-Derived Oils for Generating 
19.23 	Electricity  and Reducing Emissions  
19.24 	$75,000 the first year and $75,000 the  second 
19.25 	year are from the trust fund to  the University 
19.26 	of Minnesota to evaluate  the environmental 
19.27 	and performance  benefits of using renewable  
19.28 	biomass-derived oils, such as soybean  oil, 
19.29 	for generating electricity.  
19.30 	(h) [Paragraph (h) was vetoed by the 
19.31 	governor.]
19.32 	(i) [Paragraph (i) was vetoed by the 
19.33 	governor.]

20.1 	Sec. 24. APPLICATION OF STORM WATER RULES TO COUNTIES.
 20.2 	Until the Pollution Control Agency storm water rules are amended, the provisions of 
20.3 	Minnesota Rules, part 7090.1010, subpart 1, item B, subitems (2) and (3), only, shall not 
20.4 	apply to counties.

20.5 	Sec. 25. STATE PURCHASING OF PLUG-IN HYBRID ELECTRIC VEHICLES.
 20.6 		Subdivision 1.Definition. (a) As used in this section, "plug-in hybrid electric vehicle 
20.7 	(PHEV)" means a vehicle containing an internal combustion engine that also allows power 
20.8 	to be delivered to the drive wheels by a battery-powered electric motor and that meets 
20.9 	applicable federal motor vehicle safety standards. When connected to the electrical grid 
20.10 	via an electrical outlet, the vehicle must be able to recharge its battery. The vehicle must 
20.11 	have the ability to travel at least 20 miles, powered substantially by electricity.
20.12 	(b) As used in this section, "neighborhood electric vehicle" means an electrically 
20.13 	powered motor vehicle that has four wheels and has a speed attainable in one mile of at 
20.14 	least 20 miles per hour but not more than 25 miles per hour on a paved level surface.
20.15 		Subd. 2.Notice of state procurement policy in bid documents. All solicitation 
20.16 	documents for the purchase of a passenger automobile, as defined in section 168.011, 
20.17 	subdivision 7; pickup truck, as defined in section 168.011, subdivision 29; or van, as 
20.18 	defined in section 168.011, subdivision 28, issued under the jurisdiction of the Department 
20.19 	of Administration after June 30, 2006, must contain the following language: "It is the 
20.20 	intention of the state of Minnesota to begin purchasing plug-in hybrid electric vehicles 
20.21 	and neighborhood electric vehicles as soon as they become commercially available, meet 
20.22 	the state's performance specifications, and are priced no more than ten percent above the 
20.23 	price for comparable gasoline powered vehicles. It is the intention of the state to purchase 
20.24 	plug-in hybrid electric vehicles and neighborhood electric vehicles whenever practicable 
20.25 	after these conditions have been met and as fleet needs dictate for at least five years  after 
20.26 	these conditions have been met."

20.27 	Sec. 26. PLUG-IN HYBRID ELECTRIC VEHICLE RETROFIT PROJECT.
 20.28 	The automotive engineering program at Minnesota State University - Mankato is 
20.29 	strongly encouraged to retrofit two flexible fuel vehicles to also operate as plug-in hybrid 
20.30 	vehicles (PHEVs). If the legislature does not appropriate funds for this purpose, the 
20.31 	Department of Administration and the Minnesota State University - Mankato may accept 
20.32 	donations and work cooperatively with nonprofit agencies, higher education institutions, 
20.33 	and public agencies to procure vehicles and obtain other necessary funds to conduct 
20.34 	the retrofit. 

21.1 	EFFECTIVE DATE.  This section is effective July 1, 2006.

21.2 	Sec. 27. DISPOSITION OF LAND SALE RECEIPTS.
 21.3 	Notwithstanding Laws 2005, chapter 156, article 2, section 45, or any other law to 
21.4 	the contrary, during fiscal year 2006 and fiscal year 2007, all receipts from the sale of land 
21.5 	under the control of the commissioner of natural resources shall be credited according to 
21.6 	Minnesota Statutes, section 94.16.

21.7 	Sec. 28. LOWER MINNESOTA RIVER WATERSHED DISTRICT; 
21.8 	AUTHORITY TO ACQUIRE, MAINTAIN, OPERATE, IMPROVE, AND 
21.9 	ENLARGE DREDGE MATERIAL SITE.
 21.10 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section: 
21.11 	(1) "district" means the Lower Minnesota River Watershed District, a district 
21.12 	established under Minnesota Statutes, chapter 103D; 
21.13 	(2) "governing body" means the managers of the district as defined in Minnesota 
21.14 	Statutes, section 103D.011, subdivision 15; and 
21.15 	(3) "dredge material site" means a site at which public agencies or private customers 
21.16 	may deposit material from dredging activities conducted on the Minnesota River.
21.17 		Subd. 2.Authorization; authority to own and operate. The district may own 
21.18 	and operate a dredge material site for its own needs, the needs of other public agencies, 
21.19 	the needs of private customers, or any combination of these. The district may acquire, 
21.20 	construct, and install all facilities needed for that purpose and may lease, purchase, or 
21.21 	acquire by exercise of the power of eminent domain any existing properties so needed. 
21.22 	The district may sell the dredge material to any person or entity. If the governing body 
21.23 	determines that the dredge material has no value, the district may convey the dredge 
21.24 	material for no consideration to any person or entity. The district may hire all personnel 
21.25 	the governing body deems necessary and may make all necessary rules and regulations for 
21.26 	the operation and maintenance of the dredge material site.
21.27 		Subd. 3.Charges; net revenues. (a) To pay for the acquisition, maintenance, 
21.28 	operation, improvement, and enlargement of the dredge material site and to obtain and 
21.29 	comply with permits required by law for the dredge material site, the governing body may 
21.30 	impose charges for permitting private customers to deposit dredge material at the dredge 
21.31 	material site and make contracts for the charges as provided in this section.
21.32 	(b) The amount of the charges imposed shall be established at the discretion of the 
21.33 	governing body. In determining the amount of the charges to be imposed, the governing 
21.34 	body may give consideration to all costs of the operation and maintenance of the dredge 
22.1 	material site, the costs of depreciation and replacement of structures and equipment, the 
22.2 	costs of improvements and enlargements, the cost of reimbursing the district for special 
22.3 	assessment revenues expended for the benefit of persons or entities not subject to special 
22.4 	assessment levies by the district, the amount of the principal and interest to become due 
22.5 	on obligations issued or to be issued, the costs of obtaining and complying with permits 
22.6 	required by law, the price charged for similar services by other providers of dredge 
22.7 	material sites in similar markets, and all other factors the governing body deems relevant.
22.8 	(c) At its discretion, the governing body may impose a surcharge on private 
22.9 	customers using the dredge material site in addition to the charges allowed under 
22.10 	paragraph (a). The surcharge shall be for the purpose of paying for the removal of dredge 
22.11 	material from the dredging site if the governing body determines it necessary. If the 
22.12 	governing body later determines that there is no need to pay for the removal of the dredge 
22.13 	material from the dredge material site, the governing body shall rebate all surcharges 
22.14 	paid by private customers.

22.15 	Sec. 29. TERRESTRIAL SEQUESTRATION; REPORT.
 22.16 	The commissioners of agriculture, commerce, natural resources, and the Pollution 
22.17 	Control Agency shall review the phase 1 report from the Minnesota Terrestrial Carbon 
22.18 	Sequestration Project and report to the Minnesota Environmental Quality Board and 
22.19 	the members of the house and senate committees with jurisdiction over agriculture, 
22.20 	energy, environment, and natural resource issues by June 30, 2007, on existing scientific 
22.21 	information on carbon stocks in Minnesota's major ecosystems, the economics of various 
22.22 	carbon enhancing practices, and alternative carbon trading systems and their potential 
22.23 	application in Minnesota.

22.24 	Sec. 30. GREENHOUSE GAS EMISSIONS; REPORT.
 22.25 	The Pollution Control Agency, in collaboration with the Minnesota Clean Energy 
22.26 	Environment Partnership, shall report to the Minnesota Environmental Quality Board and 
22.27 	the members of the house and senate committees with jurisdiction over agriculture, energy, 
22.28 	environment, and natural resource issues by June 30, 2007, on strategies for mitigating, 
22.29 	reducing, and sequestering state greenhouse gas emissions.

22.30 	Sec. 31. CARRYFORWARD.
 22.31 	The appropriation under Laws 2003, chapter 128, article 1, section 9, subdivision 
22.32 	6, paragraph (c), for local initiative grants - parks and natural areas, is available until 
22.33 	June 30, 2007.

23.1 	Sec. 32.  REPEALER.
 23.2 	Minnesota Statutes 2004, section 89.011, subdivisions 1, 2, 3, and 6, are repealed.

23.3 	Sec. 33. EFFECTIVE DATE.
 23.4 	Except where otherwise specified, this article is effective the day following final 
23.5 	enactment.

23.6 	ARTICLE 2
23.7 	CLEAN WATER LEGACY ACT

23.8 	Section 1. Minnesota Statutes 2004, section 103C.501, subdivision 5, is amended to 
23.9 	read:
23.10 		Subd. 5.Contracts by districts. (a) A district board may contract on a cost-share 
23.11 	basis to furnish financial aid to a land occupier or to a state agency for permanent systems 
23.12 	for erosion or sedimentation control or water quality improvement that are consistent with 
23.13 	the district's comprehensive and annual work plans.
23.14 	(b) The duration of the contract may must, at a minimum, be the time required to 
23.15 	complete the planned systems. A contract must specify that the land occupier is liable 
23.16 	for monetary damages, not to exceed the and penalties in an amount of up to 150 percent 
23.17 	of the financial assistance received from the district, for failure to complete the systems 
23.18 	or practices in a timely manner or maintain the systems or practices as specified in the 
23.19 	contract.
23.20 	(c) A contract may provide for cooperation or funding with federal agencies. A land 
23.21 	occupier or state agency may provide the cost-sharing portion of the contract through 
23.22 	services in kind.
23.23 	(d) The state board or the district board may not furnish any financial aid for 
23.24 	practices designed only to increase land productivity.
23.25 	(e) When a district board determines that long-term  maintenance of a system or 
23.26 	practice is desirable, the board may  require that such maintenance be made a covenant 
23.27 	upon the land for the effective life of the practice.  A covenant under this  subdivision shall 
23.28 	be construed in the same manner as a  conservation restriction under section 84.65.

23.29 	Sec. 2. [114D.05] CITATION.
23.30 	This chapter may be cited as the "Clean Water Legacy Act."

23.31 	Sec. 3. [114D.10] LEGISLATIVE PURPOSE AND FINDINGS.
24.1 		Subdivision 1.Purpose. The purpose of the Clean Water  Legacy Act is to protect, 
24.2 	restore, and preserve the quality of  Minnesota's surface waters by providing authority, 
24.3 	direction,  and resources to achieve and maintain water quality standards for surface waters 
24.4 	as required by section 303(d) of the federal Clean Water Act, United States Code, title 33, 
24.5 	section 1313(d), and applicable federal regulations.
24.6 		Subd. 2.Findings. The legislature finds that: 
24.7 	(1) there is a close link between protecting, restoring, and preserving the quality of 
24.8 	Minnesota's surface waters and the ability to develop the state's economy, enhance its 
24.9 	quality of life, and protect its human and natural resources; 
24.10 	(2) achieving the state's water quality goals will require long-term commitment and 
24.11 	cooperation by all state and local agencies, and other public and private organizations 
24.12 	and individuals, with responsibility and authority for water management, planning, and 
24.13 	protection; and 
24.14 	(3) all persons and organizations whose activities affect the quality of waters, 
24.15 	including point and nonpoint sources of pollution, have a responsibility to participate in 
24.16 	and support efforts to achieve the state's water quality goals. 

24.17 	Sec. 4. [114D.15] DEFINITIONS.
24.18 		Subdivision 1.Application. The definitions provided in this section apply to the 
24.19 	terms used in this chapter.
24.20 		Subd. 2.Citizen monitoring. "Citizen monitoring" means monitoring of surface 
24.21 	water quality by individuals and nongovernmental organizations that is consistent with 
24.22 	section 115.06, subdivision 4, and Pollution Control Agency guidance on monitoring 
24.23 	procedures, quality assurance protocols, and data  management.
24.24 		Subd. 3.Clean Water Council. "Clean Water Council" or "council" means the 
24.25 	Clean Water Council created pursuant to section 114D.30, subdivision 1.
24.26 		Subd. 4.Federal TMDL requirements. "Federal TMDL  requirements" means the 
24.27 	requirements of section 303(d) of the Clean Water Act, United States Code, title 33, 
24.28 	section 1313(d), and associated regulations and guidance.
24.29 		Subd. 5.Impaired water. "Impaired water" means surface water that does not 
24.30 	meet applicable water quality standards.
24.31 		Subd. 6.Public agencies. "Public agencies" means all state agencies, political 
24.32 	subdivisions, joint powers organizations, and special purpose units of government with 
24.33 	authority, responsibility, or expertise in protecting, restoring, or preserving the quality of 
24.34 	surface waters, managing or planning for surface waters and related lands, or financing 
25.1 	waters-related projects. Public agencies includes the University of Minnesota and other 
25.2 	public education institutions. 
25.3 		Subd. 7.Restoration. "Restoration" means actions, including effectiveness 
25.4 	monitoring, that are taken to achieve and maintain water quality standards for impaired 
25.5 	waters in accordance with a TMDL that has been approved by the United States 
25.6 	Environmental Protection Agency under federal TMDL requirements. 
25.7 		Subd. 8.Surface waters. "Surface waters" means waters of the state as defined 
25.8 	in section 115.01, subdivision 22, excluding groundwater as defined in section 115.01, 
25.9 	subdivision  6.
25.10 		Subd. 9.Third-party TMDL. "Third-party TMDL" means a TMDL by the 
25.11 	Pollution Control Agency that is developed in whole or in part by a qualified public entity 
25.12 	other than the Pollution Control Agency consistent with the goals, policies, and priorities 
25.13 	in section 114D.20. 
25.14 		Subd. 10.Total maximum daily load or TMDL. "Total maximum daily load" or 
25.15 	"TMDL" means a scientific study that contains a calculation of the maximum amount of a 
25.16 	pollutant that may be introduced into a surface water and still ensure that applicable 
25.17 	water quality standards for that water are restored and maintained. A TMDL also is 
25.18 	the sum of the pollutant load  allocations for all sources of the pollutant, including a 
25.19 	wasteload allocation for point sources, a load allocation for  nonpoint sources and natural 
25.20 	background, an allocation for future growth of point and nonpoint sources, and a margin 
25.21 	of safety to account for uncertainty about the relationship between pollutant loads and 
25.22 	the quality of the receiving surface water. "Natural background" means characteristics of 
25.23 	the water body resulting from the multiplicity of factors in nature, including climate and 
25.24 	ecosystem dynamics, that affect the physical, chemical, or biological conditions in a water 
25.25 	body, but does not include measurable and distinguishable pollution that is  attributable to 
25.26 	human activity or influence. A TMDL must take into account seasonal variations. 
25.27 		Subd. 11.TMDL implementation plan. "TMDL implementation plan" means a 
25.28 	document detailing restoration activities needed to meet the approved TMDL's pollutant 
25.29 	load allocations for point and nonpoint sources.
25.30 		Subd. 12.Water quality standards. "Water quality standards" for Minnesota 
25.31 	surface waters are found in Minnesota Rules, chapters 7050 and 7052.

25.32 	Sec. 5. [114D.20] IMPLEMENTATION; COORDINATION; GOALS; 
25.33 	POLICIES; AND PRIORITIES.
25.34 		Subdivision 1.Coordination and cooperation. In implementing this chapter, 
25.35 	public agencies and private entities shall take into consideration the relevant provisions of 
26.1 	local and other applicable water management, conservation, land use, land management, 
26.2 	and development plans and programs. Public  agencies with authority for local water 
26.3 	management, conservation, land use, land management, and development plans shall 
26.4 	take into consideration the manner in which their plans  affect the implementation of 
26.5 	this chapter. Public agencies shall identify opportunities to participate and assist in the 
26.6 	successful implementation of this chapter, including the funding or technical assistance 
26.7 	needs, if any, that may be necessary. In implementing this chapter, public agencies shall 
26.8 	endeavor to engage the cooperation of organizations and individuals whose activities 
26.9 	affect the quality of surface waters, including point and nonpoint sources of pollution, and 
26.10 	who have authority and responsibility for water management, planning, and protection.   To 
26.11 	the extent practicable, public agencies shall endeavor to enter into formal and informal 
26.12 	agreements and arrangements with federal agencies and departments to jointly utilize 
26.13 	staff and educational, technical, and financial resources to deliver programs or conduct 
26.14 	activities to achieve the intent of this chapter, including efforts under the federal Clean 
26.15 	Water Act and other federal farm and soil and water conservation programs. Nothing in 
26.16 	this chapter affects the application of silvicultural exemptions under any federal, state, or 
26.17 	local law or requires silvicultural practices more stringent than those recommended in 
26.18 	the timber harvesting and forest management guidelines adopted by the Minnesota Forest 
26.19 	Resources Council under section 89A.05.
26.20 		Subd. 2.Goals for implementation. The following goals must guide the 
26.21 	implementation of this chapter: 
26.22 	(1) to identify impaired waters in accordance with federal TMDL requirements 
26.23 	within ten years after the effective date of this section and thereafter to ensure continuing 
26.24 	evaluation of surface waters for impairments; 
26.25 	(2) to submit TMDL's to the United States Environmental Protection Agency for all 
26.26 	impaired waters in a timely manner in accordance with federal TMDL requirements; 
26.27 	(3) to set a reasonable time for implementing restoration of each identified impaired 
26.28 	water; 
26.29 	(4) to provide assistance and incentives to prevent waters from becoming impaired 
26.30 	and to improve the quality of waters which are listed as impaired but have no approved 
26.31 	TMDL addressing the impairment; 
26.32 	(5) to promptly seek the delisting of waters from the impaired waters list when those 
26.33 	waters are shown to achieve the designated uses applicable to the waters; and 
26.34 	(6) to achieve compliance with federal Clean Water Act requirements in Minnesota.
26.35 		Subd. 3.Implementation policies. The following policies must guide the 
26.36 	implementation of this chapter: 
27.1 	(1) develop regional and watershed TMDL's and TMDL implementation plans, and 
27.2 	TMDL's and TMDL implementation plans for multiple pollutants, where reasonable and 
27.3 	feasible; 
27.4 	(2) maximize use of available organizational, technical, and financial resources to 
27.5 	perform sampling, monitoring, and other activities to identify impaired waters, including 
27.6 	use of citizen monitoring and citizen monitoring data used by the Pollution Control 
27.7 	Agency in assessing water quality must meet the requirements in appendix D of the 
27.8 	Volunteer Surface Water Monitoring Guide, Minnesota Pollution Control Agency (2003); 
27.9 	(3) maximize opportunities for restoration of impaired waters, by prioritizing and 
27.10 	targeting of available programmatic, financial, and technical resources and by providing 
27.11 	additional state resources to complement and leverage available resources; 
27.12 	(4) use existing regulatory authorities to achieve restoration for point and nonpoint 
27.13 	sources of pollution where applicable, and promote the development and use of effective 
27.14 	nonregulatory measures to address pollution sources for which regulations are not 
27.15 	applicable; 
27.16 	(5) use restoration methods that have a demonstrated effectiveness in reducing 
27.17 	impairments and provide the greatest long-term positive impact on water quality protection 
27.18 	and improvement and related conservation benefits while incorporating innovative 
27.19 	approaches on a case-by-case basis; 
27.20 	(6) identify for the legislature any innovative approaches that may strengthen or 
27.21 	complement existing programs; 
27.22 	(7) identify and encourage implementation of measures to prevent waters from 
27.23 	becoming impaired and to improve the quality of waters that are listed as impaired but 
27.24 	have no approved TMDL addressing the impairment using the best available data and 
27.25 	technology, and establish and report outcome-based performance measures that monitor 
27.26 	the progress and effectiveness of protection and restoration measures; and
27.27 	(8) monitor and enforce cost-sharing contracts and impose monetary damages in an 
27.28 	amount up to 150 percent of the financial assistance received for failure to comply. 
27.29 		Subd. 4.Priorities for identifying impaired waters. The Pollution Control 
27.30 	Agency, in accordance with federal TMDL requirements, shall set priorities for identifying 
27.31 	impaired waters, giving consideration to: 
27.32 	(1) waters where impairments would pose the greatest potential risk to human or 
27.33 	aquatic health; and 
27.34 	(2) waters where data developed through public agency or citizen monitoring or 
27.35 	other means, provides scientific evidence that an impaired condition exists. 
28.1 		Subd. 5.Priorities for preparation of TMDL's. The Clean Water Council shall 
28.2 	recommend priorities for scheduling and preparing TMDL's and TMDL implementation 
28.3 	plans, taking into account the severity of the impairment, the designated uses of those 
28.4 	waters, and other applicable federal TMDL requirements. In recommending priorities, the 
28.5 	council shall also give consideration to waters and watersheds: 
28.6 	(1) with impairments that pose the greatest potential risk to human health; 
28.7 	(2) with impairments that pose the greatest potential risk to threatened or endangered 
28.8 	species; 
28.9 	(3) with impairments that pose the greatest potential risk to aquatic health; 
28.10 	(4) where other public agencies and participating organizations and individuals, 
28.11 	especially local, basinwide, watershed, or regional agencies or organizations, have 
28.12 	demonstrated readiness to assist in carrying out the responsibilities, including availability 
28.13 	and organization of human, technical, and financial resources necessary to undertake 
28.14 	the work; and 
28.15 	(5) where there is demonstrated coordination and cooperation among cities, 
28.16 	counties, watershed districts, and soil and water conservation districts in planning and 
28.17 	implementation of activities that will assist in carrying out the responsibilities. 
28.18 		Subd. 6.Priorities for restoration of impaired waters. In implementing 
28.19 	restoration of impaired waters, in addition to the priority considerations in subdivision 5, 
28.20 	the Clean Water Council shall give priority in its recommendations for restoration funding 
28.21 	from the clean water legacy account to restoration projects that: 
28.22 	(1) coordinate with and utilize existing local authorities and infrastructure for 
28.23 	implementation; 
28.24 	(2) can be implemented in whole or in part by providing  support for existing or 
28.25 	ongoing restoration efforts; 
28.26 	(3) most effectively leverage other sources of restoration funding, including federal, 
28.27 	state, local, and private sources of funds; 
28.28 	(4) show a high potential for early restoration and delisting based upon scientific 
28.29 	data developed through public agency or citizen monitoring or other means; and
28.30 	(5) show a high potential for long-term water quality and related conservation 
28.31 	benefits.
28.32 		Subd. 7.Priorities for funding prevention actions. The Clean Water Council 
28.33 	shall apply the priorities applicable under subdivision 6, as far as practicable, when 
28.34 	recommending priorities for funding actions to prevent waters from becoming impaired 
28.35 	and to improve the quality of waters that are listed as impaired but have no approved 
28.36 	TMDL. 

29.1 	Sec. 6. [114D.25] ADMINISTRATION; POLLUTION CONTROL AGENCY.
29.2 		Subdivision 1.General duties and authorities. (a) The Pollution Control Agency, 
29.3 	in accordance with federal TMDL requirements, shall: 
29.4 	(1) identify impaired waters and propose a list of the waters for review and approval 
29.5 	by the United States Environmental Protection Agency;
29.6 	(2) develop and approve TMDL's for listed impaired waters and submit the approved 
29.7 	TMDL's to the United State Environmental Protection Agency for final approval; and
29.8 	(3) propose to delist waters from the Environmental Protection Agency impaired 
29.9 	waters list.
29.10 	(b) A TMDL must include a statement of the facts and scientific data supporting the 
29.11 	TMDL and a list of potential implementation options, including a range of estimates of 
29.12 	the cost of implementation and individual wasteload data for any point sources addressed 
29.13 	by the TMDL.
29.14 	(c) The implementation information need not be sent to the United States 
29.15 	Environmental Protection Agency for review and approval.
29.16 		Subd. 2.Administrative procedures for TMDL approval. The approval of a 
29.17 	TMDL by the Pollution Control Agency is a final decision of the agency for purposes of 
29.18 	section 115.05, and is subject to the contested case procedures of sections 14.57 to 14.62 in 
29.19 	accordance with agency procedural rules.  The agency shall not submit an approved TMDL 
29.20 	to the United States Environmental Protection Agency until the time for commencing 
29.21 	judicial review has run or the judicial review process has been completed. A TMDL is not 
29.22 	subject to the  rulemaking requirements of chapter 14, including section 14.386.
29.23 		Subd. 3.TMDL submittal requirement. Before submitting a TMDL to the United 
29.24 	States Environmental Protection Agency, the Pollution Control Agency shall comply with 
29.25 	the notice and procedure requirements of this section.  If a contested case proceeding is not 
29.26 	required for a proposed TMDL, the agency may submit the TMDL to the United States 
29.27 	Environmental Protection Agency no earlier than 30 days after the notice required in 
29.28 	subdivision 4. If a contested case proceeding is required for a TMDL, the TMDL may be 
29.29 	submitted to the United States Environmental Protection Agency after the contested case 
29.30 	proceeding and appeal process is completed.
29.31 		Subd. 4.TMDL notice; contents. The Pollution Control Agency shall give notice 
29.32 	of its intention to submit a TMDL to the United States Environmental Protection Agency. 
29.33 	The notice must be given by publication in the State Register and by United States mail to 
29.34 	persons who have registered their names with the agency.  The notice must include either a 
29.35 	copy of the proposed TMDL or an easily readable and understandable description of its 
29.36 	nature and effect and an announcement of how free access to the proposed TMDL can 
30.1 	be obtained.  In addition, the agency shall make reasonable efforts to notify persons or 
30.2 	classes of persons who may be significantly affected by the TMDL by giving notice of 
30.3 	its intention in newsletters, newspapers, or other publications, or through other means of 
30.4 	communication.  The notice must include a statement informing the public: 
30.5 	(1) that the public has 30 days in which to submit comment in support of or in 
30.6 	opposition to the proposed TMDL and that comment is encouraged; 
30.7 	(2) that each comment should identify the portion of the proposed TMDL addressed, 
30.8 	the reason for the comment, and any change proposed; 
30.9 	(3) of the manner in which persons must request a contested case proceeding on 
30.10 	the proposed TMDL; 
30.11 	(4) that the proposed TMDL may be modified if the modifications are supported by 
30.12 	the data and views submitted; and 
30.13 	(5) the date on which the 30-day comment period ends. 
30.14 		Subd. 5.Third-party TMDL development. The Pollution Control Agency may 
30.15 	enter into agreements with any qualified public agency setting forth the terms and 
30.16 	conditions under which that entity is authorized to develop a third-party TMDL.  In 
30.17 	determining whether the public agency is qualified to develop a third-party TMDL, the 
30.18 	Pollution Control Agency shall consider  the technical and administrative qualifications of 
30.19 	the public agency, cost,  and shall avoid any potential organizational conflict of interest, 
30.20 	as defined in section 16C.02, subdivision 10a, of the public agency with respect to the 
30.21 	development of the third-party TMDL.  A third-party TMDL is subject to modification 
30.22 	and approval by the Pollution Control Agency, and must be approved by the Pollution 
30.23 	Control Agency before it is submitted to the  United States Environmental Protection 
30.24 	Agency.  The Pollution Control Agency shall only consider authorizing the development 
30.25 	of third-party TMDL's consistent with the goals, policies, and priorities determined under 
30.26 	section 116.384.

30.27 	Sec. 7. [114D.30] CLEAN WATER COUNCIL.
30.28 		Subdivision 1.Creation; duties. A Clean Water Council is created to advise the 
30.29 	Pollution Control Agency and other implementing public agencies on the administration 
30.30 	and implementation of this chapter, and foster coordination and cooperation as described 
30.31 	in section 114D.20, subdivision 1.  The council may also advise on the development 
30.32 	of appropriate processes for expert scientific review as described in section 114D.35, 
30.33 	subdivision 2.  The Pollution Control Agency shall provide administrative support for the 
30.34 	council with the support of other member agencies.  The members of the council shall 
30.35 	elect a chair from the nonagency members of the council.
31.1 		Subd. 2.Membership; appointment. The governor must appoint the members of 
31.2 	the council. The governor must appoint one person from each of the following agencies: 
31.3 	the Department of Natural Resources, the Department of Agriculture, the Pollution 
31.4 	Control Agency, and the Board of Water and Soil Resources. The governor must appoint 
31.5 	18 additional nonagency members of the council as follows: 
31.6 	(1) two members representing statewide farm organizations; 
31.7 	(2) two members representing business organizations; 
31.8 	(3) two members representing environmental organizations; 
31.9 	(4) one member representing soil and water conservation districts; 
31.10 	(5) one member representing watershed districts; 
31.11 	(6) one member representing nonprofit organizations focused on improvement of 
31.12 	Minnesota lakes or streams; 
31.13 	(7) two members representing organizations of county governments; 
31.14 	(8) two members representing organizations of city governments; 
31.15 	(9) one member representing the Metropolitan Council established under section 
31.16 	473.123;
31.17 	(10) one member representing an organization of township governments;
31.18 	(11) one member representing the interests of tribal governments; and
31.19 	(12) two members representing statewide hunting organizations.
31.20 	In making appointments, the governor must attempt to provide for geographic balance.
31.21 		Subd. 3.Terms; compensation; removal. The initial terms of members 
31.22 	representing state agencies and the Metropolitan Council expire on the first Monday in 
31.23 	January, 2007. Thereafter, the terms of members representing the state agencies and the 
31.24 	Metropolitan Council are four years and are coterminous with the governor. The terms 
31.25 	of other members of the council shall be as provided in section 15.059, subdivision 2. 
31.26 	Members may serve until their successors are appointed and qualify. Compensation and 
31.27 	removal of council members is as provided in section 15.059, subdivisions 3 and 4. A 
31.28 	vacancy on the council may be filled by the appointing authority provided in  subdivision 1 
31.29 	for the remainder of the unexpired term.
31.30 		Subd. 4.Implementation plan. The Clean Water Council shall prepare a plan for 
31.31 	implementation of this chapter. The plan shall address general procedures and timeframes 
31.32 	for implementing this chapter, and shall include a more specific implementation work plan 
31.33 	for the next fiscal biennium and a framework for setting priorities to address impaired 
31.34 	waters consistent with section 114D.45, subdivisions 2 to 7. The council shall issue the 
31.35 	first implementation plan under this subdivision by December 1, 2006, and shall issue a 
31.36 	revised work plan by December 1 of each even-numbered year thereafter.
32.1 		Subd. 5.Recommendations on appropriation of funds. The  Clean Water Council 
32.2 	shall recommend to the governor the manner in which money from the clean water legacy 
32.3 	account should be appropriated for the purposes identified in section 114D.45, subdivision 
32.4 	3.  The council's recommendations must be consistent with the purposes, policies, goals, 
32.5 	and priorities in sections  114D.05 to 114D.35, and shall allocate adequate support and 
32.6 	resources to identify impaired waters, develop TMDL's, develop TMDL implementation 
32.7 	plans, implement restoration of impaired waters, and provide assistance and incentives 
32.8 	to prevent waters from becoming impaired and improve the quality of waters which are 
32.9 	listed as impaired but have no approved TMDL.  The council must recommend methods of 
32.10 	ensuring that awards of grants, loans,  or other funds from the clean water legacy account 
32.11 	specify the outcomes to be achieved as a result of the funding, and specify standards to 
32.12 	hold the recipient accountable for achieving the desired outcomes.
32.13 		Subd. 6.Biennial report to legislature. By December 1 of each even-numbered 
32.14 	year, the council shall submit a report to the legislature on the activities for which money 
32.15 	has been or will be spent for the current biennium, the activities for which money is 
32.16 	recommended to be spent in the next biennium, and the impact on economic development 
32.17 	of the implementation of the impaired waters program. The report due on December 
32.18 	1, 2014, must include an evaluation of the progress made through June 30, 2014, in 
32.19 	implementing this chapter, the need for funding of future implementation of those 
32.20 	sections, and recommendations for the sources of funding. 

32.21 	Sec. 8. [114D.35] PUBLIC AND STAKEHOLDER PARTICIPATION; 
32.22 	SCIENTIFIC REVIEW; EDUCATION.
32.23 		Subdivision 1.Public and stakeholder participation. Public agencies and private 
32.24 	entities involved in the implementation of this chapter shall encourage participation by 
32.25 	the public and stakeholders, including local citizens, landowners and managers, and 
32.26 	public and private organizations, in the identification of impaired waters, in developing 
32.27 	TMDL's, and in planning, priority setting, and implementing restoration of impaired 
32.28 	waters. In particular, the Pollution Control Agency shall make reasonable efforts to 
32.29 	provide timely information to the public and to stakeholders about impaired waters that 
32.30 	have been identified by the agency. The agency shall seek broad and early public and 
32.31 	stakeholder participation in scoping the activities necessary to develop a TMDL, including 
32.32 	the scientific  models, methods, and approaches to be used in TMDL development, and to 
32.33 	implement restoration pursuant to section 114D.15, subdivision 7.
32.34 		Subd. 2.Expert scientific advice. The Clean Water Council and public agencies 
32.35 	and private entities shall make use of available public and private expertise from 
33.1 	educational, research, and technical organizations, including the University of Minnesota 
33.2 	and other higher education institutions, to provide appropriate independent expert advice 
33.3 	on models, methods, and  approaches used in identifying impaired waters, developing 
33.4 	TMDL's, and implementing prevention and restoration. 
33.5 		Subd. 3.Education. The Clean Water Council shall develop strategies for 
33.6 	informing, educating, and encouraging the participation of citizens, stakeholders, 
33.7 	and others regarding the identification of impaired waters, development of TMDL's, 
33.8 	development of TMDL implementation plans, and implementation of restoration for 
33.9 	impaired waters. Public agencies shall be  responsible for implementing the strategies. 

33.10 	Sec. 9. Minnesota Statutes 2005 Supplement, section 116.182, subdivision 2, is 
33.11 	amended to read:
33.12 		Subd. 2.Applicability. This section governs the commissioner's certification of 
33.13 	projects seeking financial assistance under section 103F.725, subdivision 1a; 446A.07; 
33.14 	446A.072; or446A.073; 446A.074; or 446A.075.

33.15 	Sec. 10. [446A.074] CLEAN WATER LEGACY PHOSPHORUS REDUCTION 
33.16 	GRANTS.
33.17 		Subdivision 1.Creation of fund. The authority shall establish a clean water legacy 
33.18 	capital improvement fund and shall make grants from the fund as provided in this section.
33.19 		Subd. 2.Grants. The authority shall award grants from the clean water legacy 
33.20 	capital improvement fund to governmental units for the capital costs of wastewater 
33.21 	treatment facility projects or a portion thereof that will reduce the discharge of total 
33.22 	phosphorus from the facility to one milligram per liter or less.  A project is eligible for a 
33.23 	grant if it meets the following requirements:
33.24 	(1) the applicable phosphorus discharge limit is incorporated in a permit issued by 
33.25 	the agency for the wastewater treatment facility on or after March 28, 2000, the grantee 
33.26 	agrees to comply with the applicable limit as a condition of receiving the grant, or the 
33.27 	grantee made improvements to a wastewater treatment facility on or after March 28, 2000, 
33.28 	that include infrastructure to reduce the discharge of total phosphorus to one milligram 
33.29 	per liter or less;
33.30 	(2) the governmental unit has submitted a facilities plan for the project to the agency 
33.31 	and a grant application to the authority on a form prescribed by the authority; and 
33.32 	(3) the agency has approved the facilities plan, and certified the eligible costs for the 
33.33 	project to the authority.
34.1 		Subd. 3.Eligible capital costs. Eligible capital costs for phosphorus reduction 
34.2 	grants under subdivision 4, paragraph (a), include the as-bid construction costs and 
34.3 	engineering planning and design costs for phosphorus treatment.  Eligible capital costs for 
34.4 	phosphorus reduction grants under subdivision 4, paragraph (b), include the final, incurred 
34.5 	construction, engineering, planning, and design costs for phosphorus treatment.
34.6 		Subd. 4.Grant amounts and priorities. (a) Priority must be given to projects that 
34.7 	start construction on or after July 1, 2006.  If a facility's plan for a project is approved 
34.8 	by the agency before July 1, 2010, the amount of the grant is 75 percent of the eligible 
34.9 	capital cost of the project.  If a facility's plan for a project is approved by the agency on 
34.10 	or after July 1, 2010, the amount of the grant is 50 percent of the eligible capital cost of 
34.11 	the project.  Priority in awarding grants under this paragraph must be based on the date of 
34.12 	approval of the facility's plan for the project.
34.13 	(b) Projects that meet the eligibility requirements in subdivision 2 and have started 
34.14 	construction before July 1, 2006, are eligible for grants to reimburse up to 75 percent of 
34.15 	the eligible capital cost of the project, less any amounts previously received in grants from 
34.16 	other sources.  Application for a grant under this paragraph must be submitted to the 
34.17 	authority no later than June 30, 2008.  Priority for award of grants under this paragraph 
34.18 	must be based on the date of agency approval of the facility plan.
34.19 	(c) In each fiscal year that money is available for grants, the authority shall first 
34.20 	award grants under paragraph (a) to projects that met the eligibility requirements of 
34.21 	subdivision 2 by May 1 of that year.  The authority shall use any remaining money 
34.22 	available that year to award grants under paragraph (b). Grants that have been approved 
34.23 	but not awarded in a previous fiscal year carry over and must be awarded in subsequent 
34.24 	fiscal years in accordance with the priorities in this paragraph.
34.25 	(d) Disbursements of grants under this section by the authority to recipients must 
34.26 	be made for eligible project costs as incurred by the recipients, and must be made by the 
34.27 	authority in accordance with the project financing agreement and applicable state law.
34.28 		Subd. 5.Fees. The authority may charge the grant recipient a fee for its 
34.29 	administrative costs not to exceed one-half of one percent of the grant amount, to be 
34.30 	paid upon execution of the grant agreement.

34.31 	Sec. 11. [446A.075] SMALL COMMUNITY WASTEWATER TREATMENT 
34.32 	PROGRAM.
34.33 		Subdivision 1.Creation of fund. The authority shall establish a small community 
34.34 	wastewater treatment fund and shall make loans and grants from the fund as provided in 
34.35 	this section. Money in the fund is annually appropriated to the authority and does not 
35.1 	lapse.  The fund shall be credited with all loan repayments and investment income from 
35.2 	the fund, and servicing fees assessed under section 446A.04, subdivision 5.  The authority 
35.3 	shall manage and administer the small community wastewater treatment fund, and for 
35.4 	these purposes, may exercise all powers provided in this chapter.
35.5 		Subd. 2.Loans and grants. (a) The authority shall award loans as provided in 
35.6 	paragraph (b) and grants as provided in paragraphs (c) and (d) to governmental units from 
35.7 	the small community wastewater treatment fund for projects to replace noncomplying 
35.8 	individual sewage treatment systems with a community wastewater treatment system or 
35.9 	systems meeting the requirements of section 115.55.  A governmental unit receiving a loan 
35.10 	or loan and grant from the fund shall own the community wastewater treatment systems 
35.11 	built under the program and shall be responsible, either directly or through a contract 
35.12 	with a private vendor, for all inspections, maintenance, and repairs necessary to ensure 
35.13 	proper operation of the systems.
35.14 	(b) Loans may be awarded for up to 100 percent of eligible project costs as described 
35.15 	in this section.
35.16 	(c) When the area to be served by a project has a median household income below 
35.17 	the state average median household income, the governmental unit may receive 50 
35.18 	percent of the funding provided under this section in the form of a grant.  An applicant 
35.19 	may submit income survey data collected by an independent party if it believes the most 
35.20 	recent United States census does not accurately reflect the median household income 
35.21 	of the area to be served.
35.22 	(d) If requested, a governmental unit receiving funding under this section may 
35.23 	receive a grant equal to ten percent of its first year's award, up to a maximum of $30,000, 
35.24 	to contract for technical assistance services from the University of Minnesota Extension 
35.25 	Service to develop the technical, managerial, and financial capacity necessary to build, 
35.26 	operate, and maintain the systems.
35.27 		Subd. 3.Project priority list. Governmental units seeking loans or loans and grants 
35.28 	from the small community wastewater treatment program shall first submit a project 
35.29 	proposal to the agency on a form prescribed by the agency.  A project proposal shall 
35.30 	include the compliance status for all individual sewage treatment systems in the project 
35.31 	area. The agency shall rank project proposals on its project priority list used for the water 
35.32 	pollution control revolving fund under section 446A.07.
35.33 		Subd. 4.Applications. Governmental units with projects on the project priority 
35.34 	list shall submit applications to the authority on forms prescribed by the authority.  The 
35.35 	application shall include:
36.1 	(1) a list of the individual sewage treatment systems proposed to be replaced over a 
36.2 	period of up to three years;
36.3 	(2) a project schedule and cost estimate for each year of the project;
36.4 	(3) a financing plan for repayment of the loan; and 
36.5 	(4) a management plan providing for the inspection, maintenance, and repairs 
36.6 	necessary to ensure proper operation of the systems.
36.7 		Subd. 5.Awards. The authority shall award loans or loans and grants as provided in 
36.8 	subdivision 2 to governmental units with approved applications based on their ranking 
36.9 	on the agency's project priority list.  The total amount awarded shall be based on the 
36.10 	estimated project costs for the portion of the project expected to be completed within 
36.11 	one year, up to an annual maximum of $500,000.  For projects expected to take more 
36.12 	than one year to complete, the authority may make a multiyear commitment for a period 
36.13 	not to exceed three years, contingent on the future availability of funds.  Each year of a 
36.14 	multiyear commitment must be funded by a separate loan or loan and grant agreement 
36.15 	meeting the terms and conditions in subdivision 6.  A governmental unit receiving a loan 
36.16 	or loan and grant under a multiyear commitment shall have priority for additional loan and 
36.17 	grant funds in subsequent years.
36.18 		Subd. 6.Loan terms and conditions. Loans from the small community wastewater 
36.19 	treatment fund shall comply with the following terms and conditions:
36.20 	(1) principal and interest payments must begin no later than two years after the 
36.21 	loan is awarded;
36.22 	(2) loans shall carry an interest rate of one percent;
36.23 	(3) loans shall be fully amortized within ten years of the first scheduled payment 
36.24 	or, if the loan amount exceeds $10,000 per household, shall be fully amortized within 20 
36.25 	years but not to exceed the expected design life of the system;
36.26 	(4) a governmental unit receiving a loan must establish a dedicated source or sources 
36.27 	of revenues for repayment of the loan and must issue a general obligation note to the 
36.28 	authority for the full amount of the loan; and 
36.29 	(5) each property owner to be served by a community wastewater treatment system 
36.30 	under this program must provide an easement to the governmental unit to allow access to 
36.31 	the system for management and repairs.
36.32 		Subd. 7.Special assessment deferral. (a) A governmental unit receiving a loan 
36.33 	under this section that levies special assessments to repay the loan may defer payment of 
36.34 	the assessments under the provisions of sections 435.193 to 435.195.
36.35 	(b) A governmental unit that defers payment of special assessments for one or more 
36.36 	properties under paragraph (a) may request deferral of that portion of the debt service on 
37.1 	its loan, and the authority shall accept appropriate amendments to the general obligation 
37.2 	note of the governmental unit.  If special assessment payments are later received from 
37.3 	properties that received a deferral, the funds received shall be paid to the authority with 
37.4 	the next scheduled loan payment.
37.5 		Subd. 8.Eligible costs. Eligible costs for small community wastewater treatment 
37.6 	loans and grants shall include the costs of technical assistance as provided in subdivision 
37.7 	2, paragraph (d), planning, design, construction, legal fees, administration, and land 
37.8 	acquisition.
37.9 		Subd. 9.Disbursements. Loan and grant disbursements by the authority under this 
37.10 	section must be made for eligible project costs as incurred by the recipients, and must be 
37.11 	made in accordance with the project loan or grant and loan agreement and applicable 
37.12 	state law.
37.13 		Subd. 10.Audits. A governmental unit receiving a loan under this section must 
37.14 	annually provide to the authority for the term of the loan a copy of its annual independent 
37.15 	audit or, if the governmental unit is not required to prepare an independent audit, a copy of 
37.16 	the annual financial reporting form it provides to the state auditor.

37.17 	Sec. 12. APPROPRIATIONS.
 37.18 		Subdivision 1.General provisions. The appropriations in this section are from the 
37.19 	general fund and are available for the fiscal year ending June 30, 2007.  Unless otherwise 
37.20 	specified in this section, these appropriations do not cancel and remain available until June 
37.21 	30, 2007. Appropriations in this section that are encumbered under contract, including 
37.22 	grant contract, on or before June 30, 2007, are available until June 30, 2009.
37.23 		Subd. 2.Pollution Control Agency. The following amounts are appropriated to the 
37.24 	Pollution Control Agency for the purposes stated: 
37.25 	(1) $1,450,000 for statewide assessment of surface water quality  and trends; of 
37.26 	these amounts, up to $1,010,000 is available for grants or contracts to support citizen 
37.27 	monitoring of surface waters; and 
37.28 	(2) $3,170,000 is available to develop TMDL's and TMDL implementation plans 
37.29 	for waters listed on the United States Environmental Protection Agency approved 2004 
37.30 	impaired waters list; of this appropriation, up to $1,740,000 is available for grants or 
37.31 	contracts to develop TMDL's. 
37.32 		Subd. 3.Agriculture Department. The following amounts are appropriated to the 
37.33 	Department of Agriculture for the purposes stated: 
38.1 	(1) $1,000,000 is for agricultural best management practices loan program; this 
38.2 	appropriation remains available until spent; of this amount, $800,000 is for pass-through 
38.3 	to local governments and lenders for low-interest loans to producers and rural landowners; 
38.4 	(2) $300,000 is available to expand technical assistance to producers and 
38.5 	conservation professionals on nutrient and pasture management; target practices to sources 
38.6 	of water impairments; coordinate federal and state farm conservation programs to fully 
38.7 	utilize federal conservation funds; and expand conservation planning assistance for 
38.8 	producers; of this amount, $100,000 is available for grants or contracts to develop nutrient 
38.9 	and conservation planning assistance information materials; and 
38.10 	(3) $200,000 is available for research, evaluation, and effectiveness monitoring of 
38.11 	agricultural practices in restoring impaired waters. 
38.12 		Subd. 4.Board of Water and Soil Resources. The following amounts are 
38.13 	appropriated to the Board of Water and Soil Resources for restoration and  prevention 
38.14 	actions.  All of the money appropriated in this subdivision as grants to local governments 
38.15 	will be administered through the Board of Water and Soil Resources' Local Water 
38.16 	Resources Protection and Management Program under Minnesota Statutes, section 
38.17 	103B.3369:
38.18 	(1) $875,000 is for targeted nonpoint restoration cost-share and incentive payments; 
38.19 	of these amounts, up to $775,000 in fiscal year 2007 is available for grants;
38.20 	(2) $1,575,000 is for targeted nonpoint restoration technical, compliance, and 
38.21 	engineering assistance activities; up to $1,375,000 in fiscal year 2007 is available for 
38.22 	grants;
38.23 	(3) $200,000 in fiscal year 2007 is for reporting and evaluation of applied soil and 
38.24 	water conservation practices; 
38.25 	(4) $250,000 is for grants for implementation of county individual sewage treatment 
38.26 	system programs; and
38.27 	(5) $500,000 is for grants to support local nonpoint source protection activities 
38.28 	related to lake and river protection and management. 
38.29 		Subd. 5.Department of Natural Resources. The following amounts are 
38.30 	appropriated to the Department of Natural Resources for the purposes stated: 
38.31 	(1) $280,000 in fiscal year 2007 is for statewide assessment of surface water quality 
38.32 	and trends; 
38.33 	(2) $200,000 is available for restoration of impaired waters and actions to prevent 
38.34 	waters from becoming impaired; of these amounts, up to $1,400,000 in fiscal year 2007 is 
39.1 	available for grants and contracts for forest stewardship planning and implementation, and 
39.2 	for research, compliance, and monitoring; and 
39.3 	(3) $1,824,000 in fiscal year 2006 and $424,000 in fiscal year 2007 from the 
39.4 	environment trust fund is for fee title acquisition and easements on high priority, sensitive 
39.5 	riparian lands that provide high value for watershed protection.

39.6 	Sec. 13. EFFECTIVE DATE.
 39.7 	Sections 1 to 12 are effective the day following final enactment.