<a id="pl.1.3"></a><var>1.3</var>Facilities Authority Act; making technical and housekeeping changes; modifying <br/>
<a id="pl.1.4"></a><var>1.4</var>Pollution Control Agency project priority rule;amending Minnesota Statutes <br/>
<a id="pl.1.5"></a><var>1.5</var>2006, sections 116.182, subdivision 5; 446A.02; 446A.03; 446A.04; 446A.051; <br/>
<a id="pl.1.6"></a><var>1.6</var>446A.07; 446A.072; 446A.073; 446A.074; 446A.075; 446A.081; 446A.085; <br/>
<a id="pl.1.7"></a><var>1.7</var>446A.09; 446A.11, subdivision 13; 446A.17, subdivision 1; repealing Minnesota <br/>
<a id="pl.1.8"></a><var>1.8</var>Statutes 2006, sections 446A.05; 446A.06; 446A.15, subdivision 6.<br/>
<a id="pl.1.9"></a><var>1.9</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="pl.1.12"></a><var>1.12</var><b>HOUSEKEEPING CHANGES</b><br/>

<a id="bill.1.1.0"></a><a id="pl.1.13"></a><var>1.13</var>    Section 1. Minnesota Statutes 2006, section 446A.02, is amended to read:<br/>
<a id="pl.1.14"></a><var>1.14</var><b>446A.02 DEFINITIONS.</b><br/>
<a id="pl.1.15"></a><var>1.15</var>    Subdivision 1. <b>Applicability.</b> For the purposes of this chapter, the terms in this <br/>
<a id="pl.1.16"></a><var>1.16</var>section have the meanings given them.<br/>
<a id="pl.1.17"></a><var>1.17</var>    Subd. 1a. <b>Agency.</b> "Agency" means the Minnesota Pollution Control Agency.<br/>
<a id="pl.1.18"></a><var>1.18</var>    Subd. 2. <b>Authority.</b> "Authority" means the Minnesota Public Facilities Authority.<br/>
<a id="pl.1.19"></a><var>1.19</var>    Subd. 3. <b>Commissioner.</b> "Commissioner" means the commissioner of employment <br/>
<a id="pl.1.20"></a><var>1.20</var>and economic development.<br/>
<a id="pl.1.21"></a><var>1.21</var>    Subd. 4. <b>Federal Water Pollution Control Act.</b> "Federal Water Pollution Control <br/>
<a id="pl.1.22"></a><var>1.22</var>Act" means the Federal Water Pollution Control Act, as amended, United States Code, <br/>
<a id="pl.1.23"></a><var>1.23</var>title 33, sections 1251 et seq.<br/>
<a id="pl.1.24"></a><var>1.24</var>    Subd. 4a. <b>Eligible recipient.</b> "Eligible recipient" means a governmental unit or <br/>
<a id="pl.1.25"></a><var>1.25</var>other entity that may be defined as an eligible recipient for specific programs within this <br/>
<a id="pl.1.26"></a><var>1.26</var>chapter, and which may be different from one program to another.<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subd. 5. <b>Governmental unit.</b> "Governmental unit" means a state agency, home rule <br/>
<a id="pl.2.2"></a><var>2.2</var>charter or statutory city, county, sanitary district, or other governmental subdivision.<br/>
<a id="pl.2.3"></a><var>2.3</var>    Subd. 6. <b>Project.</b> "Project" means any eligible activity authorized in this chapter <br/>
<a id="pl.2.4"></a><var>2.4</var>including the acquisition, design, construction, improvement, expansion, repair, or <br/>
<a id="pl.2.5"></a><var>2.5</var>rehabilitation of all or part of any structure, facility, or equipment necessary for a <br/>
<a id="pl.2.6"></a><var>2.6</var>wastewater treatment system or water supply system.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.7"></a><var>2.7</var>    Sec. 2. Minnesota Statutes 2006, section 446A.03, is amended to read:<br/>
<a id="pl.2.8"></a><var>2.8</var><b>446A.03 MINNESOTA PUBLIC FACILITIES AUTHORITY.</b><br/>
<a id="pl.2.9"></a><var>2.9</var>    Subdivision 1. <b>Membership.</b> The Minnesota Public Facilities Authority consists <br/>
<a id="pl.2.10"></a><var>2.10</var>of the commissioner of employment and economic development, the commissioner <br/>
<a id="pl.2.11"></a><var>2.11</var>of finance, the commissioner of the Pollution Control Agency, the commissioner of <br/>
<a id="pl.2.12"></a><var>2.12</var>agriculture, the commissioner of health, and the commissioner of transportation.<br/>
<a id="pl.2.13"></a><var>2.13</var>    Subd. 2. <b>Chair; other officers.</b> The commissioner of employment and economic <br/>
<a id="pl.2.14"></a><var>2.14</var>development shall serve as the chair and chief executive officer of the authority. The <br/>
<a id="pl.2.15"></a><var>2.15</var>authority  shall have the position of vice-chair rotate annually among its members. In the <br/>
<a id="pl.2.16"></a><var>2.16</var>absence of the chair or vice-chair at meetings of the authority members may elect a chair <br/>
<a id="pl.2.17"></a><var>2.17</var>for the meeting, and may elect other officers as necessary from its members.<br/>
<a id="pl.2.18"></a><var>2.18</var>    Subd. 3a. <b>Delegation.</b> In addition to any powers to delegate that members of the <br/>
<a id="pl.2.19"></a><var>2.19</var>authority have as commissioners, they may delegate to the commissioner of employment <br/>
<a id="pl.2.20"></a><var>2.20</var>and economic development chair, vice-chair, or executive director their responsibilities as <br/>
<a id="pl.2.21"></a><var>2.21</var>members of the authority for reviewing and approving financing of eligible projects that <br/>
<a id="pl.2.22"></a><var>2.22</var>have been certified to the authority by another department or agency, projects that have <br/>
<a id="pl.2.23"></a><var>2.23</var>been authorized by law, or programs specifically authorized by resolution of the authority.<br/>
<a id="pl.2.24"></a><var>2.24</var>    Subd. 4. <b>Board actions.</b> (a) A majority of the authority, excluding vacancies, <br/>
<a id="pl.2.25"></a><var>2.25</var>constitutes a quorum to conduct its business, to exercise its powers, and for all other <br/>
<a id="pl.2.26"></a><var>2.26</var>purposes.<br/>
<a id="pl.2.27"></a><var>2.27</var>(b) The board may conduct its business by any technological means available, <br/>
<a id="pl.2.28"></a><var>2.28</var>including teleconference calls or interactive video, that allows for an interaction between <br/>
<a id="pl.2.29"></a><var>2.29</var>members. If a meeting is conducted under this paragraph, a specific location must be <br/>
<a id="pl.2.30"></a><var>2.30</var>available for the public to attend the meeting and at least one member must be present at <br/>
<a id="pl.2.31"></a><var>2.31</var>that location.<br/>
<a id="pl.2.32"></a><var>2.32</var>    Subd. 5. <b>Executive director</b><b>; staffing</b><b>.</b> The commissioner authority shall employ <br/>
<a id="pl.2.33"></a><var>2.33</var>and the chair shall appoint, with the concurrence of the authority, an executive director <br/>
<a id="pl.2.34"></a><var>2.34</var>in the unclassified service. The executive director shall be responsible for staff of the <br/>
<a id="pl.2.35"></a><var>2.35</var>authority. The executive director shall perform duties that the authority may require in <br/>
<a id="pl.3.1"></a><var>3.1</var>carrying out its responsibilities to manage and implement the funds and programs in this <br/>
<a id="pl.3.2"></a><var>3.2</var>chapter, implementation of debt issuance authorized by the authority, compliance with <br/>
<a id="pl.3.3"></a><var>3.3</var>all state and federal program requirements, and state and federal securities and tax laws <br/>
<a id="pl.3.4"></a><var>3.4</var>and regulations.<br/>
<a id="pl.3.5"></a><var>3.5</var>    Subd. 6. <b>Administrative services.</b> The commissioner shall provide administrative <br/>
<a id="pl.3.6"></a><var>3.6</var>services to the authority shall enter into agreements for administrative and professional <br/>
<a id="pl.3.7"></a><var>3.7</var>services, and technical support.<br/>
<a id="pl.3.8"></a><var>3.8</var>    Subd. 7. <b>Personal liability.</b> Members and officers of the authority are not liable <br/>
<a id="pl.3.9"></a><var>3.9</var>personally for any debt or obligation of the authority.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.3.10"></a><var>3.10</var>    Sec. 3. Minnesota Statutes 2006, section 446A.04, is amended to read:<br/>
<a id="pl.3.11"></a><var>3.11</var><b>446A.04 POWERS; DUTIES</b><b>; PROGRAM ADMINISTRATION</b><b>.</b><br/>
<a id="pl.3.12"></a><var>3.12</var>    Subdivision 1. <b>Bylaws; rules.</b> The authority shall adopt bylaws for its organization <br/>
<a id="pl.3.13"></a><var>3.13</var>and internal management. The commissioner may adopt rules covering the authority's <br/>
<a id="pl.3.14"></a><var>3.14</var>operations, properties, and facilities.<br/>
<a id="pl.3.15"></a><var>3.15</var>    Subd. 2. <b>Power to sue; enter contracts.</b> The authority may sue and be sued. The <br/>
<a id="pl.3.16"></a><var>3.16</var>authority may make and enter into contracts, leases, and agreements necessary to perform <br/>
<a id="pl.3.17"></a><var>3.17</var>its duties and exercise its powers.<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 3. <b>Gifts; grants.</b> The authority may apply for, accept, and disburse gifts, <br/>
<a id="pl.3.19"></a><var>3.19</var>grants, loans, or other property from the United States, the state, private sources, or <br/>
<a id="pl.3.20"></a><var>3.20</var>any other source for any of its purposes. Money received by the authority under this <br/>
<a id="pl.3.21"></a><var>3.21</var>subdivision must be deposited in the state treasury and is appropriated to the authority to <br/>
<a id="pl.3.22"></a><var>3.22</var>carry out its duties.<br/>
<a id="pl.3.23"></a><var>3.23</var>    Subd. 4. <b>Contract for services.</b> The authority may retain or contract for the <br/>
<a id="pl.3.24"></a><var>3.24</var>services of accountants, financial advisors, and other consultants or agents needed to <br/>
<a id="pl.3.25"></a><var>3.25</var>perform its duties and exercise its powers.<br/>
<a id="pl.3.26"></a><var>3.26</var>    Subd. 5. <b>Fees.</b> (a) The authority may set and collect fees for costs incurred by the <br/>
<a id="pl.3.27"></a><var>3.27</var>authority for audits, arbitrage accounting, and payment of fees charged by the State Board <br/>
<a id="pl.3.28"></a><var>3.28</var>of Investment. The authority may also set and collect fees for costs incurred by, the <br/>
<a id="pl.3.29"></a><var>3.29</var>commissioner Department of Employment and Economic Development, the Department <br/>
<a id="pl.3.30"></a><var>3.30</var>of Health, the Pollution Control Agency, and the Department of Transportation, including <br/>
<a id="pl.3.31"></a><var>3.31</var>costs for personnel, professional, and administrative services, for financings debt issuance <br/>
<a id="pl.3.32"></a><var>3.32</var>related costs and the establishment and maintenance of reserve funds. Fees charged <br/>
<a id="pl.3.33"></a><var>3.33</var>directly to borrowers or grantees upon executing a loan or grant agreement must not <br/>
<a id="pl.3.34"></a><var>3.34</var>exceed one-half of one percent of the loan or grant amount. Servicing fees assessed to loan <br/>
<a id="pl.3.35"></a><var>3.35</var>repayments must not exceed two percent of the loan repayment. The disposition of fees <br/>
<a id="pl.4.1"></a><var>4.1</var>collected for costs incurred by the authority is governed by section 
         <statute_ref>446A.11, subdivision <br/>
<a id="pl.4.2"></a><var>4.2</var>13
         </statute_ref>. The authority shall enter into interagency agreements to transfer funds into appropriate <br/>
<a id="pl.4.3"></a><var>4.3</var>administrative accounts established for fees collected under this subdivision for costs <br/>
<a id="pl.4.4"></a><var>4.4</var>incurred by the commissioner Department of Employment and Economic Development, <br/>
<a id="pl.4.5"></a><var>4.5</var>the Department of Health, or the Pollution Control Agency. Fees collected under this <br/>
<a id="pl.4.6"></a><var>4.6</var>subdivision for costs incurred by the commissioner Department of Transportation must be <br/>
<a id="pl.4.7"></a><var>4.7</var>credited to the fund or account which is the source of the loan to which the fees are related.<br/>
<a id="pl.4.8"></a><var>4.8</var>(b) The authority shall annually report to the chairs of the finance and appropriations <br/>
<a id="pl.4.9"></a><var>4.9</var>committees of the legislature on:<br/>
<a id="pl.4.10"></a><var>4.10</var>(1) the amount of fees collected under this subdivision for costs incurred by the <br/>
<a id="pl.4.11"></a><var>4.11</var>authority;<br/>
<a id="pl.4.12"></a><var>4.12</var>(2) the purposes for which the fee proceeds have been spent; and<br/>
<a id="pl.4.13"></a><var>4.13</var>(3) the amount of any remaining balance of fee proceeds.<br/>
<a id="pl.4.14"></a><var>4.14</var>    Subd. 6. <b>Property.</b> The authority may acquire, encumber, hold, and convey through <br/>
<a id="pl.4.15"></a><var>4.15</var>lease, purchase, gift, or otherwise, any real or personal property.<br/>
<a id="pl.4.16"></a><var>4.16</var>    Subd. 6a. <b>Loans; grants.</b> The authority may make and contract to make loans and <br/>
<a id="pl.4.17"></a><var>4.17</var>grants to eligible recipients to finance projects that the eligible recipient may construct or <br/>
<a id="pl.4.18"></a><var>4.18</var>acquire or may acquire or contract to acquire notes and bonds issued by eligible recipients <br/>
<a id="pl.4.19"></a><var>4.19</var>to finance those projects.<br/>
<a id="pl.4.20"></a><var>4.20</var>    Subd. 6b. <b>Debt.</b> The authority may borrow money to carry out and effectuate its <br/>
<a id="pl.4.21"></a><var>4.21</var>programs and may issue  bonds or notes as evidence of any such borrowing in accordance <br/>
<a id="pl.4.22"></a><var>4.22</var>with sections 446A.12 to 446A.20.<br/>
<a id="pl.4.23"></a><var>4.23</var>    Subd. 7. <b>In general.</b> The authority has all the powers necessary and convenient <br/>
<a id="pl.4.24"></a><var>4.24</var>to carry out its duties under this chapter.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.4.25"></a><var>4.25</var>    Sec. 4. Minnesota Statutes 2006, section 446A.051, is amended to read:<br/>
<a id="pl.4.26"></a><var>4.26</var><b>446A.051 PROJECT FINANCIAL ASSISTANCE.</b><br/>
<a id="pl.4.27"></a><var>4.27</var>    Subdivision 1. <b>Determination of financial assistance. </b> The authority shall assist <br/>
<a id="pl.4.28"></a><var>4.28</var>eligible governmental units  recipients in determining what grants or loans under sections <br/>
<statute_ref><a id="pl.4.29"></a><var>4.29</var>446A.06,
         </statute_ref>
<statute_ref>446A.07, 446A.072, 446A.073, 446A.074, 446A.075, and 446A.081</statute_ref> to apply <br/>
<a id="pl.4.30"></a><var>4.30</var>for to finance projects and the manner in which the governmental unit eligible recipient <br/>
<a id="pl.4.31"></a><var>4.31</var>will pay for its portion of the project cost. <br/>
<a id="pl.4.32"></a><var>4.32</var>    Subd. 2. <b>Grant limitations. </b> If a project is eligible for a grant under section <br/>
<statute_ref><a id="pl.4.33"></a><var>4.33</var>446A.073
         </statute_ref>, 
         <statute_ref>446A.074</statute_ref>, or 
         <statute_ref>446A.075</statute_ref>, the total grant shall not exceed the greater of the <br/>
<a id="pl.4.34"></a><var>4.34</var>maximum amount from a single program or the amount the project could receive under <br/>
<a id="pl.4.35"></a><var>4.35</var>section 
         <statute_ref>446A.072</statute_ref>.<br/>
<a id="pl.5.1"></a><var>5.1</var>    Subd. 3. <b>Financial feasibility review.</b> (a) The authority shall review the proposed <br/>
<a id="pl.5.2"></a><var>5.2</var>financing for each project certified by the agency to the authority to ascertain whether or <br/>
<a id="pl.5.3"></a><var>5.3</var>not: (1) total financing of a project is assured; and (2) the governmental unit's financial <br/>
<a id="pl.5.4"></a><var>5.4</var>plan to pay for its portion of the project cost is feasible; (3) the proposed project and <br/>
<a id="pl.5.5"></a><var>5.5</var>financing plan is an eligible use of the money; and (4) the proposal is in compliance with <br/>
<a id="pl.5.6"></a><var>5.6</var>applicable state and federal tax and securities laws and regulations.<br/>
<a id="pl.5.7"></a><var>5.7</var>(b) Unless a project is specifically authorized by law, the authority may reject the <br/>
<a id="pl.5.8"></a><var>5.8</var>proposed financing for a project meeting the requirements in paragraph (a) if a majority <br/>
<a id="pl.5.9"></a><var>5.9</var>of members believe the financing of the project would not be in the best interests of the <br/>
<a id="pl.5.10"></a><var>5.10</var>state or would be detrimental to the authority's funds or programs. A determination to <br/>
<a id="pl.5.11"></a><var>5.11</var>reject a proposed project shall not be made in an arbitrary and capricious manner and must <br/>
<a id="pl.5.12"></a><var>5.12</var>be supported by substantive evidence and documented by a resolution of the authority <br/>
<a id="pl.5.13"></a><var>5.13</var>stating its findings.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.5.14"></a><var>5.14</var>    Sec. 5. Minnesota Statutes 2006, section 446A.07, is amended to read:<br/>
<a id="pl.5.15"></a><var>5.15</var><b>446A.07 </b><b>CLEAN </b><b>WATER </b><b>POLLUTION CONTROL</b><b> REVOLVING FUND.</b><br/>
<a id="pl.5.16"></a><var>5.16</var>    Subdivision 1. <b>Establishment of fund.</b> The authority shall establish a clean water <br/>
<a id="pl.5.17"></a><var>5.17</var>pollution control revolving fund to provide loans for the purposes and eligible costs <br/>
<a id="pl.5.18"></a><var>5.18</var>authorized under title VI of the Federal Water Pollution Control Act. The fund must be <br/>
<a id="pl.5.19"></a><var>5.19</var>credited with repayments.<br/>
<a id="pl.5.20"></a><var>5.20</var>    Subd. 1a. <b>Definitions.</b> (a) For the purposes of this section, the terms in this <br/>
<a id="pl.5.21"></a><var>5.21</var>subdivision have the meanings given them.<br/>
<a id="pl.5.22"></a><var>5.22</var>(b) "Eligible recipients" means governmental units or other entities eligible to receive <br/>
<a id="pl.5.23"></a><var>5.23</var>loans or other assistance as provided in title VI of the Federal Water Pollution Control Act.<br/>
<a id="pl.5.24"></a><var>5.24</var>(c) "Federal Water Pollution Control Act" means the Federal Water Pollution Control <br/>
<a id="pl.5.25"></a><var>5.25</var>Act, as amended, United States Code, title 33, sections 1251 et seq.<br/>
<a id="pl.5.26"></a><var>5.26</var>    Subd. 2. <b>State funds.</b> A state matching fund is established to be used in compliance <br/>
<a id="pl.5.27"></a><var>5.27</var>with federal matching requirements specified in the Federal Water Pollution Control Act. <br/>
<a id="pl.5.28"></a><var>5.28</var>A state grant and loan fund is established to provide grants and loans to governmental <br/>
<a id="pl.5.29"></a><var>5.29</var>units for the planning and construction of treatment works as specified in section 
<statute_ref>116.16, <br/>
<a id="pl.5.30"></a><var>5.30</var>subdivision 2
</statute_ref>, paragraphs (6) and (7).<br/>
<a id="pl.5.31"></a><var>5.31</var>    Subd. 3. <b>Capitalization grant agreement.</b> The authority shall enter an agreement <br/>
<a id="pl.5.32"></a><var>5.32</var>with the administrator of the United States Environmental Protection Agency to receive <br/>
<a id="pl.5.33"></a><var>5.33</var>capitalization grants for the clean water revolving fund. The authority may exercise <br/>
<a id="pl.5.34"></a><var>5.34</var>powers necessary to comply with the requirements specified in the agreement, which must <br/>
<a id="pl.5.35"></a><var>5.35</var>be in compliance with the Federal Water Pollution Control Act.<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 4. <b>Intended use plan.</b> (a) The Public Facilities authority shall annually <br/>
<a id="pl.6.2"></a><var>6.2</var>prepare and submit to the United States Environmental Protection Agency an intended use <br/>
<a id="pl.6.3"></a><var>6.3</var>plan. The plan must identify the intended uses of the amounts available to the clean water <br/>
<a id="pl.6.4"></a><var>6.4</var>pollution control revolving fund, including a list of wastewater treatment and storm water <br/>
<a id="pl.6.5"></a><var>6.5</var>projects and all other eligible activities to be funded during the fiscal year.<br/>
<a id="pl.6.6"></a><var>6.6</var>(b) To be eligible for placement on the intended use plan:<br/>
<a id="pl.6.7"></a><var>6.7</var>(1) a project must be listed on the Pollution Control Agency's project priority list;<br/>
<a id="pl.6.8"></a><var>6.8</var>(2) the applicant must submit a written request to the Public Facilities authority, <br/>
<a id="pl.6.9"></a><var>6.9</var>including a brief description of the project, a project cost estimate and the requested loan <br/>
<a id="pl.6.10"></a><var>6.10</var>amount, and a proposed project schedule; and<br/>
<a id="pl.6.11"></a><var>6.11</var>(3) for a construction loan, the project must have a facility plan approved by the <br/>
<a id="pl.6.12"></a><var>6.12</var>Pollution Control Agency.<br/>
<a id="pl.6.13"></a><var>6.13</var>(c) The Pollution Control Agency shall annually provide to the Public Facilities <br/>
<a id="pl.6.14"></a><var>6.14</var>authority its project priority list of wastewater and storm water projects to be considered <br/>
<a id="pl.6.15"></a><var>6.15</var>for funding. The Public Facilities authority may not submit the plan until it has received <br/>
<a id="pl.6.16"></a><var>6.16</var>the review and comment of the Pollution Control Agency or until 30 days have elapsed <br/>
<a id="pl.6.17"></a><var>6.17</var>since the plan was submitted to the Pollution Control Agency, whichever occurs first. In <br/>
<a id="pl.6.18"></a><var>6.18</var>addition, the Public Facilities authority shall offer municipalities eligible recipients seeking <br/>
<a id="pl.6.19"></a><var>6.19</var>placement on the intended use plan an opportunity to review and comment on the plan <br/>
<a id="pl.6.20"></a><var>6.20</var>before it is adopted. The plan may be amended to add additional projects for consideration <br/>
<a id="pl.6.21"></a><var>6.21</var>for funding as it determines funds are available and additional projects are able to proceed.<br/>
<a id="pl.6.22"></a><var>6.22</var>    Subd. 5. <b>Applications.</b> Applications by municipalities and other entities identified <br/>
<a id="pl.6.23"></a><var>6.23</var>in the annual intended use plan eligible recipients for loans from the clean water pollution <br/>
<a id="pl.6.24"></a><var>6.24</var>control revolving fund must be made to the authority on forms requiring information <br/>
<a id="pl.6.25"></a><var>6.25</var>prescribed by the rules of the agency adopted under this section. The authority shall send <br/>
<a id="pl.6.26"></a><var>6.26</var>the applications to the agency within ten days of receipt authority. The director Pollution <br/>
<a id="pl.6.27"></a><var>6.27</var>Control Agency shall certify to the authority those applications projects that appear to <br/>
<a id="pl.6.28"></a><var>6.28</var>meet the criteria set forth in the Federal Water Pollution Control Act, this section, and <br/>
<a id="pl.6.29"></a><var>6.29</var>rules of the Pollution Control Agency.<br/>
<a id="pl.6.30"></a><var>6.30</var>    Subd. 6. <b>Award and terms of loans.</b> The authority shall award loans to those <br/>
<a id="pl.6.31"></a><var>6.31</var>municipalities and other entities for projects certified by the Pollution Control Agency <br/>
<a id="pl.6.32"></a><var>6.32</var>or shall provide funding for the appropriate state agency or department to make loans <br/>
<a id="pl.6.33"></a><var>6.33</var>for eligible activities certified by the pollution control agency identified in the intended <br/>
<a id="pl.6.34"></a><var>6.34</var>use plan, provided the use of funds and the terms and conditions of the loans are in <br/>
<a id="pl.6.35"></a><var>6.35</var>conformance with the federal Water Pollution Control Act, this section, and rules of the <br/>
<a id="pl.6.36"></a><var>6.36</var>Pollution Control Agency and the authority adopted under this section.<br/>
<a id="pl.7.1"></a><var>7.1</var>    Subd. 7. <b>Loan conditions.</b> When making loans from the revolving fund, the <br/>
<a id="pl.7.2"></a><var>7.2</var>authority shall comply with the conditions of the Federal Water Pollution Control Act, <br/>
<a id="pl.7.3"></a><var>7.3</var>including:<br/>
<a id="pl.7.4"></a><var>7.4</var>(a) Loans must be made at or below market interest rates, including interest-free <br/>
<a id="pl.7.5"></a><var>7.5</var>loans, at terms not to exceed 20 years.<br/>
<a id="pl.7.6"></a><var>7.6</var>(b) The annual principal and interest payments must begin no later than one year <br/>
<a id="pl.7.7"></a><var>7.7</var>after completion of a project. Loans must be fully amortized no later than 20 years after <br/>
<a id="pl.7.8"></a><var>7.8</var>project completion.<br/>
<a id="pl.7.9"></a><var>7.9</var>(c) A loan  An eligible recipient shall establish a dedicated source of revenue for <br/>
<a id="pl.7.10"></a><var>7.10</var>repayment of the loan.<br/>
<a id="pl.7.11"></a><var>7.11</var>(d) The fund must be credited with all payments of principal and interest on all loans.<br/>
<a id="pl.7.12"></a><var>7.12</var>(e) A loan may not be used to pay operating expenses or current obligations, unless <br/>
<a id="pl.7.13"></a><var>7.13</var>specifically allowed by the Federal Water Pollution Control Act.<br/>
<a id="pl.7.14"></a><var>7.14</var>(f) A loan made by the authority must be secured by notes or bonds of the eligible <br/>
<a id="pl.7.15"></a><var>7.15</var>recipient of the loan.<br/>
<a id="pl.7.16"></a><var>7.16</var>    Subd. 8. <b>Other uses of revolving fund.</b> The clean water pollution control revolving <br/>
<a id="pl.7.17"></a><var>7.17</var>fund may be used as provided in title VI of the Federal Water Pollution Control Act, <br/>
<a id="pl.7.18"></a><var>7.18</var>including the following uses:<br/>
<a id="pl.7.19"></a><var>7.19</var>(1) to buy or refinance the debt obligation of governmental units for treatment <br/>
<a id="pl.7.20"></a><var>7.20</var>works where debt was incurred and construction begun after March 7, 1985, at or below <br/>
<a id="pl.7.21"></a><var>7.21</var>market rates;<br/>
<a id="pl.7.22"></a><var>7.22</var>(2) to guarantee or purchase insurance for local obligations to improve credit market <br/>
<a id="pl.7.23"></a><var>7.23</var>access or reduce interest rates;<br/>
<a id="pl.7.24"></a><var>7.24</var>(3) to provide a source of revenue or security for the payment of principal and <br/>
<a id="pl.7.25"></a><var>7.25</var>interest on revenue or general obligation bonds issued by the authority if the bond <br/>
<a id="pl.7.26"></a><var>7.26</var>proceeds are deposited in the fund;<br/>
<a id="pl.7.27"></a><var>7.27</var>(4) to provide loan guarantees, loans, or set-aside for similar revolving funds <br/>
<a id="pl.7.28"></a><var>7.28</var>established by a governmental unit other than state agencies, or state agencies under <br/>
<a id="pl.7.29"></a><var>7.29</var>sections 
         <statute_ref>17.117</statute_ref>, 
         <statute_ref>103F.725, subdivision 1a</statute_ref>, 
         <statute_ref>116J.403,</statute_ref> and 
         <statute_ref>116J.617</statute_ref>; provided that no more <br/>
<a id="pl.7.30"></a><var>7.30</var>than $4,000,000 of the balance in the fund may be used for the small cities block grant <br/>
<a id="pl.7.31"></a><var>7.31</var>program under section 
<statute_ref>116J.403</statute_ref> and the tourism loan program under section 
<statute_ref>116J.617</statute_ref>, <br/>
<a id="pl.7.32"></a><var>7.32</var>taken together; <br/>
<a id="pl.7.33"></a><var>7.33</var>(5) to earn interest on fund accounts; and<br/>
<a id="pl.7.34"></a><var>7.34</var>(6) to pay the reasonable costs incurred by the authority and the Pollution Control <br/>
<a id="pl.7.35"></a><var>7.35</var>Agency of administering the fund and conducting activities required under the Federal <br/>
<a id="pl.7.36"></a><var>7.36</var>Water Pollution Control Act, including water quality management planning under section <br/>
<a id="pl.8.1"></a><var>8.1</var>205(j) of the act and water quality standards continuing planning under section 303(e) <br/>
<a id="pl.8.2"></a><var>8.2</var>of the act.<br/>
<a id="pl.8.3"></a><var>8.3</var>Amounts spent under clause (6) may not exceed the amount allowed under the <br/>
<a id="pl.8.4"></a><var>8.4</var>Federal Water Pollution Control Act.<br/>
<a id="pl.8.5"></a><var>8.5</var>    Subd. 9. <b>Payments.</b> Payments from the fund must be made in accordance with the <br/>
<a id="pl.8.6"></a><var>8.6</var>applicable state and federal law governing the payments, except that for projects other <br/>
<a id="pl.8.7"></a><var>8.7</var>than those funded under section 
         <statute_ref>17.117</statute_ref>, 
         <statute_ref>103F.725, subdivision 1a</statute_ref>, 
         <statute_ref>116J.403</statute_ref>,
<statute_ref>116J.617</statute_ref>, <br/>
<a id="pl.8.8"></a><var>8.8</var>or 
         <statute_ref>462A.05</statute_ref>, no payment for a project may be made to a governmental unit an eligible <br/>
<a id="pl.8.9"></a><var>8.9</var>recipient until and unless the authority has determined the total estimated cost of the <br/>
<a id="pl.8.10"></a><var>8.10</var>project and ascertained that financing of the project is assured by: <br/>
<a id="pl.8.11"></a><var>8.11</var>(1) a loan authorized by state law or the appropriation of proceeds of bonds or other <br/>
<a id="pl.8.12"></a><var>8.12</var>money of the governmental unit to a fund for the construction of the project; and<br/>
<a id="pl.8.13"></a><var>8.13</var>(2) an irrevocable undertaking, by resolution of the governing body eligible recipient <br/>
<a id="pl.8.14"></a><var>8.14</var>of the governmental unit, to use all money made available for the project exclusively for <br/>
<a id="pl.8.15"></a><var>8.15</var>the project, and to pay any additional amount by which the cost of the project exceeds the <br/>
<a id="pl.8.16"></a><var>8.16</var>estimate by the appropriation to the construction fund of additional money or the proceeds <br/>
<a id="pl.8.17"></a><var>8.17</var>of additional bonds to be issued by the governmental unit eligible recipient.<br/>
<a id="pl.8.18"></a><var>8.18</var>    Subd. 10. <b>Rules of authority.</b> The commissioner shall adopt rules containing <br/>
<a id="pl.8.19"></a><var>8.19</var>procedures for the administration of the authority's duties as provided in this section, <br/>
<a id="pl.8.20"></a><var>8.20</var>including loan interest rates, the amounts of loans, and municipal financial need.<br/>
<a id="pl.8.21"></a><var>8.21</var>    Subd. 11. <b>Rules of </b><b>Pollution Control </b><b>Agency.</b> The Pollution Control Agency <br/>
<a id="pl.8.22"></a><var>8.22</var>shall adopt rules relating to the procedure for preparation of the annual intended use plan <br/>
<a id="pl.8.23"></a><var>8.23</var>certification of projects to the authority for funding, and other matters that the Pollution <br/>
<a id="pl.8.24"></a><var>8.24</var>Control Agency considers necessary for proper loan administration of its duties under this <br/>
<a id="pl.8.25"></a><var>8.25</var>section. Eligible activities are those required under the Federal Water Pollution Control <br/>
<a id="pl.8.26"></a><var>8.26</var>Act of 1987, as amended.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.8.27"></a><var>8.27</var>    Sec. 6. Minnesota Statutes 2006, section 446A.072, is amended to read:<br/>
<a id="pl.8.28"></a><var>8.28</var><b>446A.072 WASTEWATER INFRASTRUCTURE FUNDING PROGRAM.</b><br/>
<a id="pl.8.29"></a><var>8.29</var>    Subdivision 1. <b>Establishment of program.</b> The authority will establish a <br/>
<a id="pl.8.30"></a><var>8.30</var>wastewater infrastructure funding program to provide supplemental assistance to <br/>
<a id="pl.8.31"></a><var>8.31</var>municipalities governmental units receiving funding through the clean water pollution <br/>
<a id="pl.8.32"></a><var>8.32</var>control revolving loan fund program or the United States Department of Agriculture <br/>
<a id="pl.8.33"></a><var>8.33</var>Rural Economic and Community Development's (USDA/RECD) Water and Waste <br/>
<a id="pl.8.34"></a><var>8.34</var>Disposal Loans and Grants program for the design and planning, improvements to, and <br/>
<a id="pl.8.35"></a><var>8.35</var>construction of municipal wastewater treatment systems. The purpose of the program <br/>
<a id="pl.9.1"></a><var>9.1</var>is to assist municipalities governmental units demonstrating financial need in building <br/>
<a id="pl.9.2"></a><var>9.2</var>cost-efficient projects to address existing environmental or public health problems. To <br/>
<a id="pl.9.3"></a><var>9.3</var>implement the program, the authority shall establish a wastewater infrastructure fund to <br/>
<a id="pl.9.4"></a><var>9.4</var>provide grants and loans for the purposes authorized under title VI of the Federal Water <br/>
<a id="pl.9.5"></a><var>9.5</var>Pollution Control Act. The fund shall be credited with all investment income from the <br/>
<a id="pl.9.6"></a><var>9.6</var>fund and all repayments of loans, grants, and penalties.<br/>
<a id="pl.9.7"></a><var>9.7</var>    Subd. 3. <b>Program administration.</b> (a) The authority shall provide supplemental <br/>
<a id="pl.9.8"></a><var>9.8</var>assistance, as provided in subdivision 5a to municipalities governmental units:<br/>
<a id="pl.9.9"></a><var>9.9</var>(1) whose projects are listed on the Pollution Control Agency's project priority list;<br/>
<a id="pl.9.10"></a><var>9.10</var>(2) that demonstrate their projects are a cost-effective solution to an existing <br/>
<a id="pl.9.11"></a><var>9.11</var>environmental or public health problem; and<br/>
<a id="pl.9.12"></a><var>9.12</var>(3) whose projects are approved by the USDA/RECD or certified by the <br/>
<a id="pl.9.13"></a><var>9.13</var>commissioner of the Pollution Control Agency.<br/>
<a id="pl.9.14"></a><var>9.14</var>(b) For a municipality governmental unit  receiving grant funding from the <br/>
<a id="pl.9.15"></a><var>9.15</var>USDA/RECD, applications must be made to the USDA/RECD with additional <br/>
<a id="pl.9.16"></a><var>9.16</var>information submitted to the authority as required by the authority. Eligible project costs <br/>
<a id="pl.9.17"></a><var>9.17</var>and affordability criteria shall be determined by the USDA/RECD.<br/>
<a id="pl.9.18"></a><var>9.18</var>(c) For a municipality governmental unit not receiving grant funding from the <br/>
<a id="pl.9.19"></a><var>9.19</var>USDA/RECD, application must be made to the authority on forms prescribed by the <br/>
<a id="pl.9.20"></a><var>9.20</var>authority for the clean water pollution control revolving fund program with additional <br/>
<a id="pl.9.21"></a><var>9.21</var>information as required by the authority. In accordance with section 
         <statute_ref>116.182</statute_ref>, the Pollution <br/>
<a id="pl.9.22"></a><var>9.22</var>Control Agency shall: <br/>
<a id="pl.9.23"></a><var>9.23</var>(1) calculate the essential project component percentage which must be multiplied <br/>
<a id="pl.9.24"></a><var>9.24</var>by the total project cost to determine the eligible project cost; and<br/>
<a id="pl.9.25"></a><var>9.25</var>(2) review and certify approved projects to the authority.<br/>
<a id="pl.9.26"></a><var>9.26</var>(d) At the time funds are appropriated under this section, the authority shall reserve <br/>
<a id="pl.9.27"></a><var>9.27</var>supplemental assistance for projects in order of their rankings on the Pollution Control <br/>
<a id="pl.9.28"></a><var>9.28</var>Agency's project priority list and in an amount based on their most recent cost estimates <br/>
<a id="pl.9.29"></a><var>9.29</var>submitted to the authority or the as-bid costs, whichever is less.<br/>
<a id="pl.9.30"></a><var>9.30</var>    Subd. 5a. <b>Type and amount of assistance.</b> (a) For a municipality governmental <br/>
<a id="pl.9.31"></a><var>9.31</var>unit receiving grant funding from the USDA/RECD, the authority shall provide assistance <br/>
<a id="pl.9.32"></a><var>9.32</var>in the form of a grant of up to one-half of the eligible grant amount determined by <br/>
<a id="pl.9.33"></a><var>9.33</var>USDA/RECD. A municipality governmental unit may not receive a grant under this <br/>
<a id="pl.9.34"></a><var>9.34</var>paragraph for more than $4,000,000 or $15,000 per existing connection, whichever <br/>
<a id="pl.9.35"></a><var>9.35</var>is less, unless specifically approved by law. In the case of a sanitary district or other <br/>
<a id="pl.9.36"></a><var>9.36</var>multijurisdictional project for which the USDA/RECD is unable to fully fund up to <br/>
<a id="pl.10.1"></a><var>10.1</var>one-half of the eligible grant amount, the authority may provide up to an additional <br/>
<a id="pl.10.2"></a><var>10.2</var>$1,000,000 for each additional municipality governmental unit participating up to a <br/>
<a id="pl.10.3"></a><var>10.3</var>maximum of $8,000,000 or $15,000 per existing connection, whichever is less, but not to <br/>
<a id="pl.10.4"></a><var>10.4</var>exceed the maximum grant level determined by the USDA/RECD as needed to keep the <br/>
<a id="pl.10.5"></a><var>10.5</var>project affordable.<br/>
<a id="pl.10.6"></a><var>10.6</var>(b) For a municipality governmental unit not receiving grant funding from the <br/>
<a id="pl.10.7"></a><var>10.7</var>USDA/RECD, the authority shall provide assistance in the form of a loan for the eligible <br/>
<a id="pl.10.8"></a><var>10.8</var>project costs that exceed five percent of the market value of properties in the project <br/>
<a id="pl.10.9"></a><var>10.9</var>service area, less the amount of any other grant funding received by the governmental <br/>
<a id="pl.10.10"></a><var>10.10</var>unit for the project. A municipality governmental unit may not receive a loan under <br/>
<a id="pl.10.11"></a><var>10.11</var>this paragraph for more than $4,000,000 or $15,000 per existing connection, whichever <br/>
<a id="pl.10.12"></a><var>10.12</var>is less, unless specifically approved by law. In the case of a sanitary district or other <br/>
<a id="pl.10.13"></a><var>10.13</var>multijurisdictional project, the authority may provide a loan under this paragraph for up to <br/>
<a id="pl.10.14"></a><var>10.14</var>an additional $1,000,000 for each additional municipality participating up to a maximum <br/>
<a id="pl.10.15"></a><var>10.15</var>of $8,000,000 or $15,000 per existing connection, whichever is less, unless specifically <br/>
<a id="pl.10.16"></a><var>10.16</var>approved by law. A loan under this paragraph must bear no interest, must be repaid as <br/>
<a id="pl.10.17"></a><var>10.17</var>provided in subdivision 7, and must only be provided in conjunction with a loan from the <br/>
<a id="pl.10.18"></a><var>10.18</var>clean water pollution control revolving fund under section 
         <statute_ref>446A.07</statute_ref>. <br/>
<a id="pl.10.19"></a><var>10.19</var>(c) Notwithstanding the limits in paragraphs (a) and (b), for a municipality <br/>
<a id="pl.10.20"></a><var>10.20</var>governmental unit receiving supplemental assistance under this section after January 1, <br/>
<a id="pl.10.21"></a><var>10.21</var>2002, if the authority determines that the municipality's governmental unit's construction <br/>
<a id="pl.10.22"></a><var>10.22</var>and installation costs are significantly increased due to geological conditions of crystalline <br/>
<a id="pl.10.23"></a><var>10.23</var>bedrock or karst areas and discharge limits that are more stringent than secondary <br/>
<a id="pl.10.24"></a><var>10.24</var>treatment, the authority shall provide assistance in the form of half grant and half loan. <br/>
<a id="pl.10.25"></a><var>10.25</var>Assistance from the authority may not be more than $25,000 per existing connection. Any <br/>
<a id="pl.10.26"></a><var>10.26</var>additional grant amount received for the same project must be used to reduce the amount <br/>
<a id="pl.10.27"></a><var>10.27</var>of the municipality's governmental unit's loan from the water pollution control revolving <br/>
<a id="pl.10.28"></a><var>10.28</var>fund that exceeds five percent of the market value of properties in the project service area.<br/>
<a id="pl.10.29"></a><var>10.29</var>    Subd. 5b. <b>Special assessment deferral.</b> A municipality governmental unit <br/>
<a id="pl.10.30"></a><var>10.30</var>receiving a loan under subdivision 5a that levies special assessments to repay the loan <br/>
<a id="pl.10.31"></a><var>10.31</var>under subdivision 5a or section 
         <statute_ref>446A.07</statute_ref> may defer payment of such assessments under <br/>
<a id="pl.10.32"></a><var>10.32</var>the provisions of sections 
         <statute_ref>435.193</statute_ref> to 
         <statute_ref>435.195</statute_ref>. <br/>
<a id="pl.10.33"></a><var>10.33</var>    Subd. 6. <b>Disbursements.</b> Disbursements of grants or loans awarded under this <br/>
<a id="pl.10.34"></a><var>10.34</var>section by the authority to recipients must be made for eligible project costs as incurred by <br/>
<a id="pl.10.35"></a><var>10.35</var>the recipients, and must be made by the authority in accordance with the project financing <br/>
<a id="pl.10.36"></a><var>10.36</var>agreement and applicable state and federal laws and rules governing the payments.<br/>
<a id="pl.11.1"></a><var>11.1</var>    Subd. 7. <b>Loan repayments.</b> Notwithstanding the limitations set forth in section <br/>
<statute_ref><a id="pl.11.2"></a><var>11.2</var>475.54
         </statute_ref>, subdivision 1, this subdivision shall govern the maturities and mandatory sinking <br/>
<a id="pl.11.3"></a><var>11.3</var>fund redemptions of the loans under this section. A municipality governmental unit <br/>
<a id="pl.11.4"></a><var>11.4</var>receiving a loan under this section shall repay the loan in semiannual payment amounts <br/>
<a id="pl.11.5"></a><var>11.5</var>determined by the authority. The payment amount must be based on the average payments <br/>
<a id="pl.11.6"></a><var>11.6</var>on the municipality's governmental unit's clean water pollution control revolving fund <br/>
<a id="pl.11.7"></a><var>11.7</var>loan or, if greater, the minimum amount required to fully repay the loan by the maturity <br/>
<a id="pl.11.8"></a><var>11.8</var>date. Payments must begin within one year of the date of the municipality's governmental <br/>
<a id="pl.11.9"></a><var>11.9</var>unit's final payment on the clean water pollution control revolving fund loan. The final <br/>
<a id="pl.11.10"></a><var>11.10</var>maturity date of the loan under this section must be no later than 20 years from the date of <br/>
<a id="pl.11.11"></a><var>11.11</var>the first payment on the loan under this section and no later than 40 years from the date of <br/>
<a id="pl.11.12"></a><var>11.12</var>the first payment on the clean water pollution control revolving fund loan.<br/>
<a id="pl.11.13"></a><var>11.13</var>    Subd. 8. <b>Eligibility.</b> A municipality governmental unit is eligible for assistance <br/>
<a id="pl.11.14"></a><var>11.14</var>under this section only after applying for grant funding from other sources and funding <br/>
<a id="pl.11.15"></a><var>11.15</var>has been applied for, obtained, rejected, or the authority has determined that the potential <br/>
<a id="pl.11.16"></a><var>11.16</var>funding is unlikely.<br/>
<a id="pl.11.17"></a><var>11.17</var>    Subd. 9. <b>Loan limitation.</b> Supplemental assistance may not be used to reduce <br/>
<a id="pl.11.18"></a><var>11.18</var>the sewer service charges of a significant wastewater contributor, or a single user that <br/>
<a id="pl.11.19"></a><var>11.19</var>has caused the need for the project or whose current or projected flow and load exceed <br/>
<a id="pl.11.20"></a><var>11.20</var>one-half of the current wastewater treatment plant's capacity.<br/>
<a id="pl.11.21"></a><var>11.21</var>    Subd. 11. <b>Report on needs.</b> By February 1 of each even-numbered year, the <br/>
<a id="pl.11.22"></a><var>11.22</var>authority, in conjunction with the Pollution Control Agency, shall prepare a report to the <br/>
<a id="pl.11.23"></a><var>11.23</var>Finance Division of the senate Environment and Natural Resources Committee and the <br/>
<a id="pl.11.24"></a><var>11.24</var>house Environment and Natural Resources Finance Committee on wastewater funding <br/>
<a id="pl.11.25"></a><var>11.25</var>assistance needs of municipalities governmental units under this section.<br/>
<a id="pl.11.26"></a><var>11.26</var>    Subd. 12. <b>System replacement fund.</b> Each municipality governmental unit <br/>
<a id="pl.11.27"></a><var>11.27</var>receiving a loan or grant under this section shall establish a system replacement fund <br/>
<a id="pl.11.28"></a><var>11.28</var>and shall annually deposit a minimum of $.50 per 1,000 gallons of flow for major <br/>
<a id="pl.11.29"></a><var>11.29</var>rehabilitation, or expansion of the treatment system, or replacement of the treatment <br/>
<a id="pl.11.30"></a><var>11.30</var>system at the end of its useful life. Money must remain in the account, for the life of the <br/>
<a id="pl.11.31"></a><var>11.31</var>loan from the authority or USDA/RECD, unless use of the fund is approved in writing by <br/>
<a id="pl.11.32"></a><var>11.32</var>the authority for major rehabilitation, expansion, or replacement of the treatment system. <br/>
<a id="pl.11.33"></a><var>11.33</var>By March 1 each year during the life of the loan, each municipality recipient shall submit <br/>
<a id="pl.11.34"></a><var>11.34</var>a report to the authority regarding the amount deposited and the fund balance for the <br/>
<a id="pl.11.35"></a><var>11.35</var>prior calendar year. Failure to comply with the requirements of this subdivision shall <br/>
<a id="pl.11.36"></a><var>11.36</var>result in the authority assessing a penalty fee to the municipality recipient equal to one <br/>
<a id="pl.12.1"></a><var>12.1</var>percent of the outstanding loan balance supplemental assistance amount for each year of <br/>
<a id="pl.12.2"></a><var>12.2</var>noncompliance. Failure to make the required deposit or pay the penalty fee as required <br/>
<a id="pl.12.3"></a><var>12.3</var>constitutes a default on the loan.<br/>
<a id="pl.12.4"></a><var>12.4</var>    Subd. 14. <b>Consistency with land use plans.</b> A municipality governmental unit <br/>
<a id="pl.12.5"></a><var>12.5</var>applying for a project in an unsewered area shall include in its application to the authority <br/>
<a id="pl.12.6"></a><var>12.6</var>a certification from the county in which the project is located that:<br/>
<a id="pl.12.7"></a><var>12.7</var>(1) the project is consistent with the county comprehensive land use plan, if the <br/>
<a id="pl.12.8"></a><var>12.8</var>county has adopted one;<br/>
<a id="pl.12.9"></a><var>12.9</var>(2) the project is consistent with the county water plan, if the county has adopted <br/>
<a id="pl.12.10"></a><var>12.10</var>one; and<br/>
<a id="pl.12.11"></a><var>12.11</var>(3) the county has adopted specific land use ordinances or controls so as to meet or <br/>
<a id="pl.12.12"></a><var>12.12</var>exceed the requirements of Minnesota Rules, part 7080.0305.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.12.13"></a><var>12.13</var>    Sec. 7. Minnesota Statutes 2006, section 446A.073, is amended to read:<br/>
<a id="pl.12.14"></a><var>12.14</var><b>446A.073 TOTAL MAXIMUM DAILY LOAD GRANTS.</b><br/>
<a id="pl.12.15"></a><var>12.15</var>    Subdivision 1. <b>Program established.</b> When money is appropriated for grants <br/>
<a id="pl.12.16"></a><var>12.16</var>under this program, the authority must make grants up to a maximum of $3,000,000 to <br/>
<a id="pl.12.17"></a><var>12.17</var>municipalities governmental units to cover up to one-half the cost of wastewater treatment <br/>
<a id="pl.12.18"></a><var>12.18</var>or stormwater projects made necessary by wasteload reductions under total maximum <br/>
<a id="pl.12.19"></a><var>12.19</var>daily load plans required by section 303(d) of the federal Clean Water Act, United States <br/>
<a id="pl.12.20"></a><var>12.20</var>Code, title 33, section 1313(d).<br/>
<a id="pl.12.21"></a><var>12.21</var>    Subd. 2. <b>Grant application.</b> Application for a grant must be made to the authority <br/>
<a id="pl.12.22"></a><var>12.22</var>on forms prescribed by the authority for the total maximum daily load grant program, with <br/>
<a id="pl.12.23"></a><var>12.23</var>additional information as required by the authority, including a project schedule and cost <br/>
<a id="pl.12.24"></a><var>12.24</var>estimate for the work necessary to comply with the point source wasteload allocation. The <br/>
<a id="pl.12.25"></a><var>12.25</var>Pollution Control Agency shall:<br/>
<a id="pl.12.26"></a><var>12.26</var>(1) in accordance with section 
         <statute_ref>116.182</statute_ref>, calculate the essential project component <br/>
<a id="pl.12.27"></a><var>12.27</var>percentage, which must be multiplied by the total project cost to determine the eligible <br/>
<a id="pl.12.28"></a><var>12.28</var>project cost; and<br/>
<a id="pl.12.29"></a><var>12.29</var>(2) review and certify to the authority those projects that have plans and <br/>
<a id="pl.12.30"></a><var>12.30</var>specifications approved under section 
         <statute_ref>115.03</statute_ref>, subdivision 1, paragraph (f).<br/>
<a id="pl.12.31"></a><var>12.31</var>    Subd. 3. <b>Project priorities.</b> When money is appropriated for grants under this <br/>
<a id="pl.12.32"></a><var>12.32</var>program, the authority shall accept applications during the month of July and reserve <br/>
<a id="pl.12.33"></a><var>12.33</var>money for projects expected to proceed with construction by the end of the fiscal year in <br/>
<a id="pl.12.34"></a><var>12.34</var>the order that their listed on the Pollution Control Agency's project priority list, provided <br/>
<a id="pl.12.35"></a><var>12.35</var>the project is included in a total maximum daily load plan was that has been  approved by <br/>
<a id="pl.13.1"></a><var>13.1</var>the United States Environmental Protection Agency at the time the appropriation became <br/>
<a id="pl.13.2"></a><var>13.2</var>law and in an amount based on their most recent the cost estimates estimate submitted to <br/>
<a id="pl.13.3"></a><var>13.3</var>the authority in the grant application or the as-bid costs, whichever is less.<br/>
<a id="pl.13.4"></a><var>13.4</var>    Subd. 4. <b>Grant approval.</b> The authority must make a grant to a municipality <br/>
<a id="pl.13.5"></a><var>13.5</var>governmental unit, as defined in section 
         <statute_ref>116.182, subdivision 1</statute_ref>, only after:<br/>
<a id="pl.13.6"></a><var>13.6</var>(1) the commissioner of the Minnesota Pollution Control Agency has certified to <br/>
<a id="pl.13.7"></a><var>13.7</var>the United States Environmental Protection Agency a total maximum daily load plan for <br/>
<a id="pl.13.8"></a><var>13.8</var>identified waters of this state that includes a point source wasteload allocation;<br/>
<a id="pl.13.9"></a><var>13.9</var>(2) the Environmental Protection Agency has approved the plan;<br/>
<a id="pl.13.10"></a><var>13.10</var>(3) a municipality governmental unit affected by the plan has estimated the cost to it <br/>
<a id="pl.13.11"></a><var>13.11</var>of submitted the as-bid cost for the wastewater treatment or storm water projects necessary <br/>
<a id="pl.13.12"></a><var>13.12</var>to comply with the point source wasteload allocation;<br/>
<a id="pl.13.13"></a><var>13.13</var>(4) the Pollution Control Agency has approved the cost estimate as-bid costs and <br/>
<a id="pl.13.14"></a><var>13.14</var>certified the grant eligible portion of the project; and<br/>
<a id="pl.13.15"></a><var>13.15</var>(5) the authority has determined that the additional financing necessary to complete <br/>
<a id="pl.13.16"></a><var>13.16</var>the project has been committed from other sources.<br/>
<a id="pl.13.17"></a><var>13.17</var>    Subd. 5. <b>Grant disbursement.</b> Disbursement of a grant must be made for eligible <br/>
<a id="pl.13.18"></a><var>13.18</var>project costs as incurred by the municipality governmental unit and in accordance with <br/>
<a id="pl.13.19"></a><var>13.19</var>a project financing agreement and applicable state and federal laws and rules governing <br/>
<a id="pl.13.20"></a><var>13.20</var>the payments.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.13.21"></a><var>13.21</var>    Sec. 8. Minnesota Statutes 2006, section 446A.074, is amended to read:<br/>
<a id="pl.13.22"></a><var>13.22</var><b>446A.074 CLEAN WATER LEGACY PHOSPHORUS REDUCTION </b><br/>
<a id="pl.13.23"></a><var>13.23</var><b>GRANTS.</b><br/>
<a id="pl.13.24"></a><var>13.24</var>    Subdivision 1. <b>Creation of account.</b> A clean water legacy capital improvement <br/>
<a id="pl.13.25"></a><var>13.25</var>account is created in the bond proceeds fund state treasury. Money in the account may <br/>
<a id="pl.13.26"></a><var>13.26</var>only be used for grants for eligible capital costs as provided in this section. Money in <br/>
<a id="pl.13.27"></a><var>13.27</var>the clean water legacy capital improvement fund account, including interest earned, is <br/>
<a id="pl.13.28"></a><var>13.28</var>appropriated to the authority for the purposes of this section.<br/>
<a id="pl.13.29"></a><var>13.29</var>    Subd. 2. <b>Grants.</b> The authority shall award grants from the clean water legacy <br/>
<a id="pl.13.30"></a><var>13.30</var>capital improvement account to governmental units for the capital costs of wastewater <br/>
<a id="pl.13.31"></a><var>13.31</var>treatment facility projects or a portion thereof that will reduce the discharge of total <br/>
<a id="pl.13.32"></a><var>13.32</var>phosphorus from the facility to one milligram per liter or less.  A project is eligible for a <br/>
<a id="pl.13.33"></a><var>13.33</var>grant if it meets the following requirements:<br/>
<a id="pl.13.34"></a><var>13.34</var>    (1) the applicable phosphorus discharge limit is incorporated in a permit issued by <br/>
<a id="pl.13.35"></a><var>13.35</var>the Pollution Control Agency for the wastewater treatment facility on or after March 28, <br/>
<a id="pl.14.1"></a><var>14.1</var>2000, the grantee agrees to comply with the applicable limit as a condition of receiving the <br/>
<a id="pl.14.2"></a><var>14.2</var>grant, or the grantee made improvements to a wastewater treatment facility on or after <br/>
<a id="pl.14.3"></a><var>14.3</var>March 28, 2000, that include infrastructure to reduce the discharge of total phosphorus to <br/>
<a id="pl.14.4"></a><var>14.4</var>one milligram per liter or less;<br/>
<a id="pl.14.5"></a><var>14.5</var>    (2) the governmental unit has submitted a facilities plan plans and specifications <br/>
<a id="pl.14.6"></a><var>14.6</var>for the project to the Pollution Control Agency and a grant application to the authority <br/>
<a id="pl.14.7"></a><var>14.7</var>on a form prescribed by the authority; and <br/>
<a id="pl.14.8"></a><var>14.8</var>    (3) the Pollution Control Agency has approved the facilities plan plans and <br/>
<a id="pl.14.9"></a><var>14.9</var>specifications, and certified the project and the as-bid or final eligible costs for the project <br/>
<a id="pl.14.10"></a><var>14.10</var>to the authority.<br/>
<a id="pl.14.11"></a><var>14.11</var>    Subd. 3. <b>Eligible capital costs.</b> Eligible capital costs for phosphorus reduction <br/>
<a id="pl.14.12"></a><var>14.12</var>grants under subdivision 4, paragraph (a), include engineering and inspection costs <br/>
<a id="pl.14.13"></a><var>14.13</var>and the as-bid construction costs for phosphorus treatment.  Eligible capital costs for <br/>
<a id="pl.14.14"></a><var>14.14</var>phosphorus reduction grants under subdivision 4, paragraph (b), include the final, incurred <br/>
<a id="pl.14.15"></a><var>14.15</var>construction, engineering, and inspection costs for phosphorus treatment.<br/>
<a id="pl.14.16"></a><var>14.16</var>    Subd. 4. <b>Grant amounts and priorities.</b> (a) Priority must be given to projects that <br/>
<a id="pl.14.17"></a><var>14.17</var>start construction on or after July 1, 2006, and rank on the Pollution Control Agency's <br/>
<a id="pl.14.18"></a><var>14.18</var>project priority list.  If a facility's plan for a project is approved and certified by the <br/>
<a id="pl.14.19"></a><var>14.19</var>Pollution Control Agency before July 1, 2010, the amount of the grant is 75 percent of <br/>
<a id="pl.14.20"></a><var>14.20</var>the eligible capital cost of the project up to a maximum of $500,000.  If a facility's plan <br/>
<a id="pl.14.21"></a><var>14.21</var>for a project is approved and certified by the Pollution Control Agency on or after July <br/>
<a id="pl.14.22"></a><var>14.22</var>1, 2010, the amount of the grant is 50 percent of the eligible capital cost of the project <br/>
<a id="pl.14.23"></a><var>14.23</var>up to a maximum of $500,000.  Priority in awarding grants under this paragraph must be <br/>
<a id="pl.14.24"></a><var>14.24</var>based on the date of approval of the facility's plan for the project.<br/>
<a id="pl.14.25"></a><var>14.25</var>    (b) Projects that meet the eligibility requirements in subdivision 2 and have started <br/>
<a id="pl.14.26"></a><var>14.26</var>construction before July 1, 2006, may be eligible for grants to reimburse up to 75 percent <br/>
<a id="pl.14.27"></a><var>14.27</var>of the eligible capital cost of the project, less any amounts previously received in grants <br/>
<a id="pl.14.28"></a><var>14.28</var>from other sources, provided that reimbursement is an eligible use of funds. Application <br/>
<a id="pl.14.29"></a><var>14.29</var>for a grant under this paragraph must be submitted to the authority no later than June 30, <br/>
<a id="pl.14.30"></a><var>14.30</var>2008.  Priority for award of grants under this paragraph must be based on the date of <br/>
<a id="pl.14.31"></a><var>14.31</var>Pollution Control Agency approval of the facility plan project plans and specifications.<br/>
<a id="pl.14.32"></a><var>14.32</var>    (c) In each fiscal year that money is available for grants, the authority shall accept <br/>
<a id="pl.14.33"></a><var>14.33</var>applications during the month of July. Money shall first award grants be reserved until <br/>
<a id="pl.14.34"></a><var>14.34</var>May 1 of that fiscal year for projects  under paragraph (a) to projects that met the eligibility <br/>
<a id="pl.14.35"></a><var>14.35</var>requirements of subdivision 2 in the order listed on the Pollution Control Agency's <br/>
<a id="pl.14.36"></a><var>14.36</var>project priority list and in an amount based on the cost estimate submitted to the authority <br/>
<a id="pl.15.1"></a><var>15.1</var>in the grant application or the as-bid costs, whichever is less. Any money reserved for <br/>
<a id="pl.15.2"></a><var>15.2</var>projects that are not approved and certified by the Pollution Control Agency by May 1 of <br/>
<a id="pl.15.3"></a><var>15.3</var>that year.  The authority shall use any remaining money  be available that year to award <br/>
<a id="pl.15.4"></a><var>15.4</var>grants under paragraph (b). Grants that have been approved but not awarded in a previous <br/>
<a id="pl.15.5"></a><var>15.5</var>fiscal year carry over and must be awarded in subsequent fiscal years in accordance with <br/>
<a id="pl.15.6"></a><var>15.6</var>the priorities in this paragraph.<br/>
<a id="pl.15.7"></a><var>15.7</var>    (d) Disbursements of grants under this section by the authority to recipients must <br/>
<a id="pl.15.8"></a><var>15.8</var>be made for eligible project costs as incurred by the recipients, and must be made by the <br/>
<a id="pl.15.9"></a><var>15.9</var>authority in accordance with the project financing agreement and applicable state law.<br/>
<a id="pl.15.10"></a><var>15.10</var>    Subd. 5. <b>Fees.</b> The authority may charge the grant recipient a fee for its <br/>
<a id="pl.15.11"></a><var>15.11</var>administrative costs not to exceed one-half of one percent of the grant amount, to be <br/>
<a id="pl.15.12"></a><var>15.12</var>paid upon execution of the grant agreement.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.15.13"></a><var>15.13</var>    Sec. 9. Minnesota Statutes 2006, section 446A.075, is amended to read:<br/>
<a id="pl.15.14"></a><var>15.14</var><b>446A.075 SMALL COMMUNITY WASTEWATER TREATMENT </b><br/>
<a id="pl.15.15"></a><var>15.15</var><b>PROGRAM.</b><br/>
<a id="pl.15.16"></a><var>15.16</var>    Subdivision 1. <b>Creation of account.</b> A small community wastewater treatment <br/>
<a id="pl.15.17"></a><var>15.17</var>account is created in the special revenue fund. The authority shall make loans and grants <br/>
<a id="pl.15.18"></a><var>15.18</var>from the account as provided in this section. Money in the fund is annually appropriated <br/>
<a id="pl.15.19"></a><var>15.19</var>to the authority and does not lapse. The account shall be credited with all loan repayments <br/>
<a id="pl.15.20"></a><var>15.20</var>and investment income from the account and servicing fees assessed under section <br/>
<statute_ref><a id="pl.15.21"></a><var>15.21</var>446A.04
         </statute_ref>, subdivision 5. The authority shall manage and administer the small community <br/>
<a id="pl.15.22"></a><var>15.22</var>wastewater treatment account and for these purposes, may exercise all powers provided <br/>
<a id="pl.15.23"></a><var>15.23</var>in this chapter.<br/>
<a id="pl.15.24"></a><var>15.24</var>    Subd. 1a. <b>Technical assistance grants.</b> If requested, and if it is an eligible use of <br/>
<a id="pl.15.25"></a><var>15.25</var>funds, the authority shall provide technical assistance grants to governmental units as <br/>
<a id="pl.15.26"></a><var>15.26</var>provided in this section to analyze possible solutions to problems from noncomplying <br/>
<a id="pl.15.27"></a><var>15.27</var>individual sewage treatment systems. A grant under this subdivision shall equal $10,000 <br/>
<a id="pl.15.28"></a><var>15.28</var>plus $500 per household, not to exceed a total of $40,000. Technical assistance grant <br/>
<a id="pl.15.29"></a><var>15.29</var>funds may be used to:<br/>
<a id="pl.15.30"></a><var>15.30</var>(1) contract with a licensed individual sewage treatment system professional for a <br/>
<a id="pl.15.31"></a><var>15.31</var>preliminary analysis of the feasibility of installing new systems meeting the requirements <br/>
<a id="pl.15.32"></a><var>15.32</var>of section 115.55; and<br/>
<a id="pl.15.33"></a><var>15.33</var>(2) to contract for services from the University of Minnesota Extension Service <br/>
<a id="pl.15.34"></a><var>15.34</var>to advise the governmental unit on the feasibility of possible wastewater treatment <br/>
<a id="pl.15.35"></a><var>15.35</var>alternatives and help the governmental unit develop the technical, managerial, and <br/>
<a id="pl.16.1"></a><var>16.1</var>financial capacity necessary to build, operate, and maintain individual wastewater <br/>
<a id="pl.16.2"></a><var>16.2</var>treatment systems.<br/>
<a id="pl.16.3"></a><var>16.3</var>    Subd. 2. <b>Construction </b><b>loans and grants.</b> (a) The authority shall award loans as <br/>
<a id="pl.16.4"></a><var>16.4</var>provided in paragraph (b) and grants as provided in paragraphs (c) and (d) this subdivision <br/>
<a id="pl.16.5"></a><var>16.5</var> to governmental units from the small community wastewater treatment account for <br/>
<a id="pl.16.6"></a><var>16.6</var>projects to replace noncomplying individual sewage treatment systems with a community <br/>
<a id="pl.16.7"></a><var>16.7</var>wastewater treatment  an individual sewage treatment system or systems meeting the <br/>
<a id="pl.16.8"></a><var>16.8</var>requirements of section 
         <statute_ref>115.55</statute_ref>.  A governmental unit receiving a loan or loan and grant <br/>
<a id="pl.16.9"></a><var>16.9</var>from the account shall own the individual wastewater treatment systems or community <br/>
<a id="pl.16.10"></a><var>16.10</var>wastewater treatment systems built under the program and shall be responsible, either <br/>
<a id="pl.16.11"></a><var>16.11</var>directly or through a contract with a private vendor, for all inspections, maintenance, and <br/>
<a id="pl.16.12"></a><var>16.12</var>repairs necessary to ensure proper operation of the systems.<br/>
<a id="pl.16.13"></a><var>16.13</var>    (b) Loans may be awarded for up to 100 percent of eligible project costs as described <br/>
<a id="pl.16.14"></a><var>16.14</var>in this section.<br/>
<a id="pl.16.15"></a><var>16.15</var>    (c) When the area to be served by a project has a median household income below <br/>
<a id="pl.16.16"></a><var>16.16</var>the state average median household income, the governmental unit may receive 50 percent <br/>
<a id="pl.16.17"></a><var>16.17</var>of the funding provided under this section subdivision in the form of a grant.  An applicant <br/>
<a id="pl.16.18"></a><var>16.18</var>may submit income survey data collected by an independent party if it believes the most <br/>
<a id="pl.16.19"></a><var>16.19</var>recent United States census does not accurately reflect the median household income <br/>
<a id="pl.16.20"></a><var>16.20</var>of the area to be served.<br/>
<a id="pl.16.21"></a><var>16.21</var>(d) If requested, and if it is an eligible use of funds, a governmental unit receiving <br/>
<a id="pl.16.22"></a><var>16.22</var>funding under this section may receive a grant equal to ten percent of its first year's <br/>
<a id="pl.16.23"></a><var>16.23</var>award, up to a maximum of $30,000, to contract for technical assistance services from <br/>
<a id="pl.16.24"></a><var>16.24</var>the University of Minnesota Extension Service to develop the technical, managerial, and <br/>
<a id="pl.16.25"></a><var>16.25</var>financial capacity necessary to build, operate, and maintain the systems.<br/>
<a id="pl.16.26"></a><var>16.26</var>    Subd. 3. <b>Project priority list.</b> Governmental units seeking loans or loans and grants <br/>
<a id="pl.16.27"></a><var>16.27</var>from the small community wastewater treatment program shall first submit a project <br/>
<a id="pl.16.28"></a><var>16.28</var>proposal to the Pollution Control Agency on a form prescribed by the Pollution Control <br/>
<a id="pl.16.29"></a><var>16.29</var>Agency.  A project proposal shall include the compliance status for all individual sewage <br/>
<a id="pl.16.30"></a><var>16.30</var>treatment systems in the project area. The Pollution Control agency shall rank project <br/>
<a id="pl.16.31"></a><var>16.31</var>proposals on its project priority list used for the clean water pollution control revolving <br/>
<a id="pl.16.32"></a><var>16.32</var>fund under section 
         <statute_ref>446A.07</statute_ref>.<br/>
<a id="pl.16.33"></a><var>16.33</var>    Subd. 4. <b>Applications.</b> Governmental units with projects on the project priority list <br/>
<a id="pl.16.34"></a><var>16.34</var>shall submit applications for loans or grants under this program to the authority on forms <br/>
<a id="pl.16.35"></a><var>16.35</var>prescribed by the authority.  An application for technical assistance funds shall include the <br/>
<a id="pl.17.1"></a><var>17.1</var>number of households served by individual sewage treatment systems in the community <br/>
<a id="pl.17.2"></a><var>17.2</var>and the proposed use of funds. The An application for construction funds shall include:<br/>
<a id="pl.17.3"></a><var>17.3</var>    (1) a list of the individual sewage treatment systems proposed to be replaced over a <br/>
<a id="pl.17.4"></a><var>17.4</var>period of up to three years;<br/>
<a id="pl.17.5"></a><var>17.5</var>    (2) a project schedule and cost estimate for each year of the project;<br/>
<a id="pl.17.6"></a><var>17.6</var>    (3) a financing plan for repayment of the loan; and <br/>
<a id="pl.17.7"></a><var>17.7</var>    (4) a management plan providing for the inspection, maintenance, and repairs <br/>
<a id="pl.17.8"></a><var>17.8</var>necessary to ensure proper operation of the systems.<br/>
<a id="pl.17.9"></a><var>17.9</var>    Subd. 5. <b>Awards.</b> The authority shall award loans or loans and grants as provided <br/>
<a id="pl.17.10"></a><var>17.10</var>in subdivision 2 this section to governmental units with approved applications based on <br/>
<a id="pl.17.11"></a><var>17.11</var>their ranking on the Pollution Control Agency's project priority list.  Prior to the award <br/>
<a id="pl.17.12"></a><var>17.12</var>of construction loans or grants under subdivision 2, paragraph (b), the Pollution Control <br/>
<a id="pl.17.13"></a><var>17.13</var>Agency shall certify that the individual sewage treatment systems to be built appear to <br/>
<a id="pl.17.14"></a><var>17.14</var>meet the criteria set forth in section 115.55 and rules of the Pollution Control Agency. The <br/>
<a id="pl.17.15"></a><var>17.15</var>total amount awarded for construction loans and grants under subdivision 2, paragraph <br/>
<a id="pl.17.16"></a><var>17.16</var>(b), shall be based on the estimated project costs for the portion of the project expected <br/>
<a id="pl.17.17"></a><var>17.17</var>to be completed within one year, up to an annual maximum of $500,000.  For projects <br/>
<a id="pl.17.18"></a><var>17.18</var>expected to take more than one year to complete, the authority may make a multiyear <br/>
<a id="pl.17.19"></a><var>17.19</var>commitment for a period not to exceed three years, contingent on the future availability of <br/>
<a id="pl.17.20"></a><var>17.20</var>funds.  Each year of a multiyear commitment must be funded by a separate loan or loan <br/>
<a id="pl.17.21"></a><var>17.21</var>and grant agreement meeting the terms and conditions in subdivision 6.  A governmental <br/>
<a id="pl.17.22"></a><var>17.22</var>unit receiving a loan or loan and grant under a multiyear commitment shall have priority <br/>
<a id="pl.17.23"></a><var>17.23</var>for additional loan and grant funds in subsequent years.<br/>
<a id="pl.17.24"></a><var>17.24</var>    Subd. 6. <b>Loan terms and conditions.</b> Loans from the small community wastewater <br/>
<a id="pl.17.25"></a><var>17.25</var>treatment account shall comply with the following terms and conditions:<br/>
<a id="pl.17.26"></a><var>17.26</var>    (1) principal and interest payments must begin no later than two years after the <br/>
<a id="pl.17.27"></a><var>17.27</var>loan is awarded;<br/>
<a id="pl.17.28"></a><var>17.28</var>    (2) loans shall carry an interest rate of one percent;<br/>
<a id="pl.17.29"></a><var>17.29</var>    (3) loans shall be fully amortized within ten years of the first scheduled payment <br/>
<a id="pl.17.30"></a><var>17.30</var>or, if the loan amount exceeds $10,000 per household, shall be fully amortized within 20 <br/>
<a id="pl.17.31"></a><var>17.31</var>years but not to exceed the expected design life of the system;<br/>
<a id="pl.17.32"></a><var>17.32</var>    (4) a governmental unit receiving a loan must establish a dedicated source or sources <br/>
<a id="pl.17.33"></a><var>17.33</var>of revenues for repayment of the loan and must issue a general obligation note to the <br/>
<a id="pl.17.34"></a><var>17.34</var>authority for the full amount of the loan; and <br/>
<a id="pl.18.1"></a><var>18.1</var>    (5) each property owner voluntarily seeking assistance for repair or replacement of <br/>
<a id="pl.18.2"></a><var>18.2</var>an individual treatment system under this program must provide an a utility easement to <br/>
<a id="pl.18.3"></a><var>18.3</var>the governmental unit to allow access to the system for management and repairs.<br/>
<a id="pl.18.4"></a><var>18.4</var>    Subd. 7. <b>Special assessment deferral.</b> (a) A governmental unit receiving a loan <br/>
<a id="pl.18.5"></a><var>18.5</var>under this section that levies special assessments to repay the loan may defer payment of <br/>
<a id="pl.18.6"></a><var>18.6</var>the assessments under the provisions of sections 
         <statute_ref>435.193</statute_ref> to 
         <statute_ref>435.195</statute_ref>.<br/>
<a id="pl.18.7"></a><var>18.7</var>    (b) A governmental unit that defers payment of special assessments for one or more <br/>
<a id="pl.18.8"></a><var>18.8</var>properties under paragraph (a) may request deferral of that portion of the debt service on <br/>
<a id="pl.18.9"></a><var>18.9</var>its loan, and the authority shall accept appropriate amendments to the general obligation <br/>
<a id="pl.18.10"></a><var>18.10</var>note of the governmental unit.  If special assessment payments are later received from <br/>
<a id="pl.18.11"></a><var>18.11</var>properties that received a deferral, the funds received shall be paid to the authority with <br/>
<a id="pl.18.12"></a><var>18.12</var>the next scheduled loan payment.<br/>
<a id="pl.18.13"></a><var>18.13</var>    Subd. 8. <b>Eligible costs.</b> (a) Eligible costs for technical assistance grants as provided <br/>
<a id="pl.18.14"></a><var>18.14</var>in subdivision 1a shall include the cost of soil borings.<br/>
<a id="pl.18.15"></a><var>18.15</var>(b) Eligible costs for small community wastewater treatment construction loans <br/>
<a id="pl.18.16"></a><var>18.16</var>and grants shall include the costs of technical assistance as provided in subdivision 2, <br/>
<a id="pl.18.17"></a><var>18.17</var>paragraph (d), for design, construction, related legal fees,  and land acquisition.<br/>
<a id="pl.18.18"></a><var>18.18</var>    Subd. 9. <b>Disbursements.</b> Loan and grant disbursements by the authority under this <br/>
<a id="pl.18.19"></a><var>18.19</var>section must be made for eligible project costs as incurred by the recipients, and must be <br/>
<a id="pl.18.20"></a><var>18.20</var>made in accordance with the project loan or grant and loan agreement and applicable <br/>
<a id="pl.18.21"></a><var>18.21</var>state law.<br/>
<a id="pl.18.22"></a><var>18.22</var>    Subd. 10. <b>Audits.</b> A governmental unit receiving a loan under this section must <br/>
<a id="pl.18.23"></a><var>18.23</var>annually provide to the authority for the term of the loan a copy of its annual independent <br/>
<a id="pl.18.24"></a><var>18.24</var>audit or, if the governmental unit is not required to prepare an independent audit, a copy of <br/>
<a id="pl.18.25"></a><var>18.25</var>the annual financial reporting form it provides to the state auditor.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.18.26"></a><var>18.26</var>    Sec. 10. Minnesota Statutes 2006, section 446A.081, is amended to read:<br/>
<a id="pl.18.27"></a><var>18.27</var><b>446A.081 DRINKING WATER REVOLVING FUND.</b><br/>
<a id="pl.18.28"></a><var>18.28</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the terms in this <br/>
<a id="pl.18.29"></a><var>18.29</var>subdivision have the meanings given them.<br/>
<a id="pl.18.30"></a><var>18.30</var>(b) "Act" means the Safe Drinking Water Act Amendments of 1996, Public Law <br/>
<a id="pl.18.31"></a><var>18.31</var>104-182.<br/>
<a id="pl.18.32"></a><var>18.32</var>(c) "Department" means the Department of Health.<br/>
<a id="pl.18.33"></a><var>18.33</var>(b) "Eligible recipient" means governmental units or other entities eligible to receive <br/>
<a id="pl.18.34"></a><var>18.34</var>loans or other assistance as provided in the federal Safe Drinking Water Act.<br/>
<a id="pl.19.1"></a><var>19.1</var>(c) "Federal Safe Drinking Water Act" means the federal Safe Drinking Water Act, <br/>
<a id="pl.19.2"></a><var>19.2</var>as amended, United States Code, title 42, sections 300f et seq.<br/>
<a id="pl.19.3"></a><var>19.3</var>    Subd. 2. <b>Establishment of fund.</b> The authority shall establish a drinking water <br/>
<a id="pl.19.4"></a><var>19.4</var>revolving fund to provide loans and other forms of financial assistance authorized by the <br/>
<a id="pl.19.5"></a><var>19.5</var>federal Safe Drinking Water Act, as determined by the authority under the rules adopted <br/>
<a id="pl.19.6"></a><var>19.6</var>under this section for the purposes and eligible costs authorized under the federal Safe <br/>
<a id="pl.19.7"></a><var>19.7</var>Drinking Water Act. The fund must be credited with repayments. The federal Safe <br/>
<a id="pl.19.8"></a><var>19.8</var>Drinking Water Act requires that the fund corpus must be managed so as to be available <br/>
<a id="pl.19.9"></a><var>19.9</var>in perpetuity for the financing of drinking water systems in the state. At a minimum, 15 <br/>
<a id="pl.19.10"></a><var>19.10</var>percent of the funds received each federal fiscal year shall be available solely for providing <br/>
<a id="pl.19.11"></a><var>19.11</var>loans to public water systems which regularly serve fewer than 10,000 individuals.<br/>
<a id="pl.19.12"></a><var>19.12</var>    Subd. 3. <b>State funds.</b> A state matching fund is established to be used in compliance <br/>
<a id="pl.19.13"></a><var>19.13</var>with federal matching requirements specified in the federal Safe Drinking Water Act.<br/>
<a id="pl.19.14"></a><var>19.14</var>    Subd. 4. <b>Capitalization grant agreement.</b> The authority shall enter into an <br/>
<a id="pl.19.15"></a><var>19.15</var>agreement with the administrator of the United States Environmental Protection Agency <br/>
<a id="pl.19.16"></a><var>19.16</var>to receive capitalization grants for the fund. The authority and the Department of Health <br/>
<a id="pl.19.17"></a><var>19.17</var>shall enter into an operating agreement with the administrator of the United States <br/>
<a id="pl.19.18"></a><var>19.18</var>Environmental Protection Agency to satisfy the criteria in the act to operate the fund. The <br/>
<a id="pl.19.19"></a><var>19.19</var>authority and the Department of Health may exercise the powers necessary to comply with <br/>
<a id="pl.19.20"></a><var>19.20</var>the requirements specified in the agreements and to ensure that loan recipients comply <br/>
<a id="pl.19.21"></a><var>19.21</var>with all applicable federal and state requirements.<br/>
<a id="pl.19.22"></a><var>19.22</var>    Subd. 5. <b>Intended use plan.</b> The authority shall annually prepare and submit <br/>
<a id="pl.19.23"></a><var>19.23</var>to the United States Environmental Protection Agency an intended use plan. The plan <br/>
<a id="pl.19.24"></a><var>19.24</var>must identify the intended uses of the amounts available to the drinking water revolving <br/>
<a id="pl.19.25"></a><var>19.25</var>loan fund. The Department of Health shall provide a prioritized list of drinking water <br/>
<a id="pl.19.26"></a><var>19.26</var>projects and other eligible activities to be considered for funding by the authority. The <br/>
<a id="pl.19.27"></a><var>19.27</var>plan may be amended by the authority and include additional eligible projects proposed by <br/>
<a id="pl.19.28"></a><var>19.28</var>the Department of Health.<br/>
<a id="pl.19.29"></a><var>19.29</var>    Subd. 6. <b>Applications.</b> Applications by municipalities, privately owned public <br/>
<a id="pl.19.30"></a><var>19.30</var>water systems, and eligible entities identified in the annual intended use plan for loans <br/>
<a id="pl.19.31"></a><var>19.31</var>from the fund must be made to the authority on the forms prescribed by the rules of the <br/>
<a id="pl.19.32"></a><var>19.32</var>authority and the rules of the Department of Health adopted under this section. The <br/>
<a id="pl.19.33"></a><var>19.33</var>authority shall forward the application to the Department of Health within ten days <br/>
<a id="pl.19.34"></a><var>19.34</var>of receipt. The Department of Health shall approve those applications that appear to <br/>
<a id="pl.19.35"></a><var>19.35</var>meet the criteria in the federal Safe Drinking Water Act, this section, and the rules of <br/>
<a id="pl.19.36"></a><var>19.36</var>the Department of Health or the authority.<br/>
<a id="pl.20.1"></a><var>20.1</var>    Subd. 7. <b>Award and terms of loans.</b> The authority shall award loans to those <br/>
<a id="pl.20.2"></a><var>20.2</var>municipalities, privately owned public water systems, and other eligible entities approved <br/>
<a id="pl.20.3"></a><var>20.3</var>by the Department of Health, provided that the applicant is able to comply with the terms <br/>
<a id="pl.20.4"></a><var>20.4</var>and conditions of the authority loan, which must be in conformance with the federal Safe <br/>
<a id="pl.20.5"></a><var>20.5</var>Drinking Water Act, this section, and the rules of the authority adopted under this section.<br/>
<a id="pl.20.6"></a><var>20.6</var>    Subd. 8. <b>Loan conditions.</b> (a) When making loans from the drinking water <br/>
<a id="pl.20.7"></a><var>20.7</var>revolving fund, the authority shall comply with the conditions of the federal Safe Drinking <br/>
<a id="pl.20.8"></a><var>20.8</var>Water Act, including the criteria in paragraphs (b) to (e).<br/>
<a id="pl.20.9"></a><var>20.9</var>(b) Loans must be made at or below market interest rates, including zero interest <br/>
<a id="pl.20.10"></a><var>20.10</var>loans, for terms not to exceed 20 years.<br/>
<a id="pl.20.11"></a><var>20.11</var>(c) The annual principal and interest payments must begin no later than one year <br/>
<a id="pl.20.12"></a><var>20.12</var>after completion of the project. Loans must be amortized no later than 20 years after <br/>
<a id="pl.20.13"></a><var>20.13</var>project completion.<br/>
<a id="pl.20.14"></a><var>20.14</var>(d) A loan recipient must identify and establish a dedicated source of revenue for <br/>
<a id="pl.20.15"></a><var>20.15</var>repayment of the loan, and provide for a source of revenue to properly operate, maintain, <br/>
<a id="pl.20.16"></a><var>20.16</var>and repair the water system.<br/>
<a id="pl.20.17"></a><var>20.17</var>(e) The fund must be credited with all payments of principal and interest on all loans, <br/>
<a id="pl.20.18"></a><var>20.18</var>except the costs as permitted under section 
         <statute_ref>446A.04, subdivision 5</statute_ref>, paragraph (a). <br/>
<a id="pl.20.19"></a><var>20.19</var>(f) A loan may not be used to pay operating expenses or current obligations, unless <br/>
<a id="pl.20.20"></a><var>20.20</var>specifically allowed by the federal Safe Drinking Water Act.<br/>
<a id="pl.20.21"></a><var>20.21</var>(g) A loan made by the authority must be secured by notes or bonds of the <br/>
<a id="pl.20.22"></a><var>20.22</var>governmental unit and collateral to be determined by the authority for private borrowers.<br/>
<a id="pl.20.23"></a><var>20.23</var>    Subd. 9. <b>Other uses of fund.</b> The drinking water revolving loan fund may be used <br/>
<a id="pl.20.24"></a><var>20.24</var>as provided in the act, including the following uses:<br/>
<a id="pl.20.25"></a><var>20.25</var>(1) to buy or refinance the debt obligations, at or below market rates, of public water <br/>
<a id="pl.20.26"></a><var>20.26</var>systems for drinking water systems, where such the debt was incurred after the date of <br/>
<a id="pl.20.27"></a><var>20.27</var>enactment of the act, for the purposes of construction of the necessary improvements <br/>
<a id="pl.20.28"></a><var>20.28</var>to comply with the national primary drinking water regulations under the federal Safe <br/>
<a id="pl.20.29"></a><var>20.29</var>Drinking Water Act;<br/>
<a id="pl.20.30"></a><var>20.30</var>(2) to purchase or guarantee insurance for local obligations to improve credit market <br/>
<a id="pl.20.31"></a><var>20.31</var>access or reduce interest rates;<br/>
<a id="pl.20.32"></a><var>20.32</var>(3) to provide a source of revenue or security for the payment of principal and <br/>
<a id="pl.20.33"></a><var>20.33</var>interest on revenue or general obligation bonds issued by the authority if the bond <br/>
<a id="pl.20.34"></a><var>20.34</var>proceeds are deposited in the fund;<br/>
<a id="pl.20.35"></a><var>20.35</var>(4) to provide loans or loan guarantees for similar revolving funds established by a <br/>
<a id="pl.20.36"></a><var>20.36</var>governmental unit or state agency;<br/>
<a id="pl.21.1"></a><var>21.1</var>(5) to earn interest on fund accounts;<br/>
<a id="pl.21.2"></a><var>21.2</var>(6) to pay the reasonable costs incurred by the authority, the Department of <br/>
<a id="pl.21.3"></a><var>21.3</var>Employment and Economic Development, and the Department of Health for conducting <br/>
<a id="pl.21.4"></a><var>21.4</var>activities as authorized and required under the act up to the limits authorized under the <br/>
<a id="pl.21.5"></a><var>21.5</var>act; and<br/>
<a id="pl.21.6"></a><var>21.6</var>(7) to develop and administer programs for water system supervision, source water <br/>
<a id="pl.21.7"></a><var>21.7</var>protection, and related programs required under the act.<br/>
<a id="pl.21.8"></a><var>21.8</var>    Subd. 10. <b>Payments.</b> Payments from the fund to borrowers must be in accordance <br/>
<a id="pl.21.9"></a><var>21.9</var>with the applicable state and federal laws governing such the payments, except no payment <br/>
<a id="pl.21.10"></a><var>21.10</var>for a project may be made to a borrower until and unless the authority has determined that <br/>
<a id="pl.21.11"></a><var>21.11</var>the total estimated cost of the project and the financing of the project are assured by:<br/>
<a id="pl.21.12"></a><var>21.12</var>(1) a loan authorized by state law or appropriation of proceeds of bonds or other <br/>
<a id="pl.21.13"></a><var>21.13</var>money of the borrower to a fund for the construction of the project; and<br/>
<a id="pl.21.14"></a><var>21.14</var>(2) an irrevocable undertaking, by resolution of the governing body of the borrower, <br/>
<a id="pl.21.15"></a><var>21.15</var>to use all money made available for the project exclusively for the project, and to pay <br/>
<a id="pl.21.16"></a><var>21.16</var>any additional amount by which the cost of the project exceeds the estimate by the <br/>
<a id="pl.21.17"></a><var>21.17</var>appropriation to the construction fund of additional money or proceeds of additional <br/>
<a id="pl.21.18"></a><var>21.18</var>bonds to be issued by the borrower.<br/>
<a id="pl.21.19"></a><var>21.19</var>    Subd. 11. <b>Rules of the authority.</b> The commissioner of employment and economic <br/>
<a id="pl.21.20"></a><var>21.20</var>development shall adopt rules containing the procedures for the administration of the <br/>
<a id="pl.21.21"></a><var>21.21</var>authority's duties as provided by this section that include: setting of interest rates, which <br/>
<a id="pl.21.22"></a><var>21.22</var>shall take into account the financial need of the applicant; the amount of project financing <br/>
<a id="pl.21.23"></a><var>21.23</var>to be provided; the collateral required for public drinking water systems and for privately <br/>
<a id="pl.21.24"></a><var>21.24</var>owned public water systems; dedicated sources of revenue or income streams to ensure <br/>
<a id="pl.21.25"></a><var>21.25</var>repayment of loans; and the requirements to ensure proper operation, maintenance, and <br/>
<a id="pl.21.26"></a><var>21.26</var>repair of the water systems financed by the authority.<br/>
<a id="pl.21.27"></a><var>21.27</var>    Subd. 12. <b>Rules of the department.</b> The Department of Health shall adopt rules <br/>
<a id="pl.21.28"></a><var>21.28</var>relating to the procedures for administration of the department's Department of Health's <br/>
<a id="pl.21.29"></a><var>21.29</var>duties under the act and this section. The department and the commissioner of the <br/>
<a id="pl.21.30"></a><var>21.30</var>Department of Employment and Economic Development may adopt a single set of rules <br/>
<a id="pl.21.31"></a><var>21.31</var>for the program.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.21.32"></a><var>21.32</var>    Sec. 11. Minnesota Statutes 2006, section 446A.085, is amended to read:<br/>
<a id="pl.21.33"></a><var>21.33</var><b>446A.085 TRANSPORTATION REVOLVING LOAN FUND.</b><br/>
<a id="pl.21.34"></a><var>21.34</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the terms defined in <br/>
<a id="pl.21.35"></a><var>21.35</var>this subdivision have the meanings given them.<br/>
<a id="pl.22.1"></a><var>22.1</var>(b) "Act" means the National Highway System Designation Act of 1995, Public <br/>
<a id="pl.22.2"></a><var>22.2</var>Law 104-59, as amended.<br/>
<a id="pl.22.3"></a><var>22.3</var>(c) "Borrower" means the state, counties, cities, and other governmental entities <br/>
<a id="pl.22.4"></a><var>22.4</var>eligible under the act and state law to apply for and receive loans from the transportation <br/>
<a id="pl.22.5"></a><var>22.5</var>revolving loan fund.<br/>
<a id="pl.22.6"></a><var>22.6</var>(d) "Loan" means financial assistance provided for all or part of the cost of a <br/>
<a id="pl.22.7"></a><var>22.7</var>project including money disbursed in anticipation of reimbursement or repayment, loan <br/>
<a id="pl.22.8"></a><var>22.8</var>guarantees, lines of credit, credit enhancements, equipment financing leases, bond <br/>
<a id="pl.22.9"></a><var>22.9</var>insurance, or other forms of financial assistance.<br/>
<a id="pl.22.10"></a><var>22.10</var>(e) "Transportation Committee" means a committee of the Minnesota Public <br/>
<a id="pl.22.11"></a><var>22.11</var>Facilities Authority, acting on behalf of the Minnesota Public Facilities Authority, <br/>
<a id="pl.22.12"></a><var>22.12</var>consisting of the commissioner of the Department of Employment and Economic <br/>
<a id="pl.22.13"></a><var>22.13</var>Development, the commissioner of finance, and the commissioner of transportation.<br/>
<a id="pl.22.14"></a><var>22.14</var>    Subd. 2. <b>Purpose.</b> The purpose of the transportation revolving loan fund is <br/>
<a id="pl.22.15"></a><var>22.15</var>to provide loans for public transportation projects eligible for financing or aid under <br/>
<a id="pl.22.16"></a><var>22.16</var>any federal act or program or state law, including, without limitation, the study of <br/>
<a id="pl.22.17"></a><var>22.17</var>the feasibility of construction, reconstruction, resurfacing, restoring, rehabilitation, or <br/>
<a id="pl.22.18"></a><var>22.18</var>replacement of transportation facilities; acquisition of right-of-way; and maintenance, <br/>
<a id="pl.22.19"></a><var>22.19</var>repair, improvement, or construction of city, town, county, or state highways, roads, <br/>
<a id="pl.22.20"></a><var>22.20</var>streets, rights-of-way, bridges, tunnels, railroad-highway crossings, drainage structures, <br/>
<a id="pl.22.21"></a><var>22.21</var>signs, maintenance and operation facilities, guardrails, and protective structures used in <br/>
<a id="pl.22.22"></a><var>22.22</var>connection with highways or transit projects. Enhancement items, including without <br/>
<a id="pl.22.23"></a><var>22.23</var>limitation bicycle paths, ornamental lighting, and landscaping, are eligible for financing <br/>
<a id="pl.22.24"></a><var>22.24</var>provided they are an integral part of overall project design and construction of a <br/>
<a id="pl.22.25"></a><var>22.25</var>federal-aid highway. Money in the fund may not be used for any toll facilities project or <br/>
<a id="pl.22.26"></a><var>22.26</var>congestion-pricing project.<br/>
<a id="pl.22.27"></a><var>22.27</var>    Subd. 3. <b>Establishment of fund.</b> A transportation revolving loan fund is established <br/>
<a id="pl.22.28"></a><var>22.28</var>to make loans for the purposes described in subdivision 2. A highway account is <br/>
<a id="pl.22.29"></a><var>22.29</var>established in the fund for highway projects eligible under United States Code, title 23. A <br/>
<a id="pl.22.30"></a><var>22.30</var>transit account is established in the fund for transit capital projects eligible under United <br/>
<a id="pl.22.31"></a><var>22.31</var>States Code, title 49. A state funds general loan account is established in the fund for <br/>
<a id="pl.22.32"></a><var>22.32</var>transportation projects eligible under state law. Other accounts may be established in the <br/>
<a id="pl.22.33"></a><var>22.33</var>fund as necessary for its management and administration. The transportation revolving <br/>
<a id="pl.22.34"></a><var>22.34</var>loan fund receives federal money under the act and money from any source. Money <br/>
<a id="pl.22.35"></a><var>22.35</var>received under this section must be paid to the commissioner of finance and credited to <br/>
<a id="pl.22.36"></a><var>22.36</var>the transportation revolving loan fund. Money in the fund is annually appropriated to the <br/>
<a id="pl.23.1"></a><var>23.1</var>authority and does not lapse. The fund must be credited with investment income, and with <br/>
<a id="pl.23.2"></a><var>23.2</var>repayments of principal and interest, except for servicing fees assessed under sections <br/>
<statute_ref><a id="pl.23.3"></a><var>23.3</var>446A.04, subdivision 5
         </statute_ref>, and 
         <statute_ref>446A.11, subdivision 8</statute_ref>. <br/>
<a id="pl.23.4"></a><var>23.4</var>    Subd. 4. <b>Management of fund and accounts.</b> The authority shall manage and <br/>
<a id="pl.23.5"></a><var>23.5</var>administer the transportation revolving loan fund and individual accounts in the fund. For <br/>
<a id="pl.23.6"></a><var>23.6</var>those purposes, the authority may exercise all powers provided in this chapter.<br/>
<a id="pl.23.7"></a><var>23.7</var>    Subd. 6. <b>Transportation Committee.</b> The Transportation Committee may <br/>
<a id="pl.23.8"></a><var>23.8</var>authorize the making of loans to borrowers by the authority for transportation purposes <br/>
<a id="pl.23.9"></a><var>23.9</var>authorized by the act or this section, without further action by the authority. The authority <br/>
<a id="pl.23.10"></a><var>23.10</var>may not make loans for transportation purposes without the approval of the Transportation <br/>
<a id="pl.23.11"></a><var>23.11</var>Committee. Each project must be certified by the commissioner of transportation before <br/>
<a id="pl.23.12"></a><var>23.12</var>its consideration by the Transportation Committee.<br/>
<a id="pl.23.13"></a><var>23.13</var>    Subd. 7. <b>Applications.</b> (a) Applicants for loans must submit an application to the <br/>
<a id="pl.23.14"></a><var>23.14</var>Transportation Committee authority on forms prescribed by the Transportation Committee <br/>
<a id="pl.23.15"></a><var>23.15</var>authority. The applicant must provide the following information:<br/>
<a id="pl.23.16"></a><var>23.16</var>(1) the estimated cost of the project and the amount of the loan sought;<br/>
<a id="pl.23.17"></a><var>23.17</var>(2) other possible sources of funding in addition to loans sought from the <br/>
<a id="pl.23.18"></a><var>23.18</var>transportation revolving loan fund;<br/>
<a id="pl.23.19"></a><var>23.19</var>(3) the proposed methods and sources of funds to be used for repayment of loans <br/>
<a id="pl.23.20"></a><var>23.20</var>received; and<br/>
<a id="pl.23.21"></a><var>23.21</var>(4) information showing the financial status and ability of the borrower to repay <br/>
<a id="pl.23.22"></a><var>23.22</var>loans.<br/>
<a id="pl.23.23"></a><var>23.23</var>    (b) Each project must be certified by the commissioner of transportation under <br/>
<a id="pl.23.24"></a><var>23.24</var>subdivision 8 before its consideration by the authority.<br/>
<a id="pl.23.25"></a><var>23.25</var>    Subd. 8. <b>Certification of projects.</b> The commissioner of transportation shall <br/>
<a id="pl.23.26"></a><var>23.26</var>consider the following information when evaluating projects to certify for funding to <br/>
<a id="pl.23.27"></a><var>23.27</var>the Transportation Committee authority:<br/>
<a id="pl.23.28"></a><var>23.28</var>(1) a description of the nature and purpose of the proposed transportation project <br/>
<a id="pl.23.29"></a><var>23.29</var>including an explanation of the need for the project and the reasons why it is in the <br/>
<a id="pl.23.30"></a><var>23.30</var>public interest;<br/>
<a id="pl.23.31"></a><var>23.31</var>(2) the relationship of the project to the area transportation improvement program, <br/>
<a id="pl.23.32"></a><var>23.32</var>the approved statewide transportation improvement program, and to any transportation <br/>
<a id="pl.23.33"></a><var>23.33</var>plans required under state or federal law;<br/>
<a id="pl.23.34"></a><var>23.34</var>(3) the estimated cost of the project and the amount of loans sought;<br/>
<a id="pl.23.35"></a><var>23.35</var>(4) proposed sources of funding in addition to loans sought from the transportation <br/>
<a id="pl.23.36"></a><var>23.36</var>revolving loan fund;<br/>
<a id="pl.24.1"></a><var>24.1</var>(5) the need for the project as part of the overall transportation system;<br/>
<a id="pl.24.2"></a><var>24.2</var>(6) the overall economic impact of the project; and<br/>
<a id="pl.24.3"></a><var>24.3</var>(7) the extent to which completion of the project will improve the movement of <br/>
<a id="pl.24.4"></a><var>24.4</var>people and freight.<br/>
<a id="pl.24.5"></a><var>24.5</var>    Subd. 9. <b>Loan conditions.</b> When making loans from the transportation revolving <br/>
<a id="pl.24.6"></a><var>24.6</var>loan fund, the Transportation Committee  shall comply with the applicable provisions of <br/>
<a id="pl.24.7"></a><var>24.7</var>the act and state law. In addition, A loan made under this section must:<br/>
<a id="pl.24.8"></a><var>24.8</var>(1) bear interest at or below market rates or as otherwise specified in federal law;<br/>
<a id="pl.24.9"></a><var>24.9</var>(2) have a repayment term not longer than 30 years;<br/>
<a id="pl.24.10"></a><var>24.10</var>(3) be fully amortized no later than 30 years after project completion;<br/>
<a id="pl.24.11"></a><var>24.11</var>(4) be subject to repayment of principal and interest beginning not later than five <br/>
<a id="pl.24.12"></a><var>24.12</var>years after the facility financed with a loan has been completed, or in the case of a highway <br/>
<a id="pl.24.13"></a><var>24.13</var>project, five years after the facility has opened to traffic; and<br/>
<a id="pl.24.14"></a><var>24.14</var>(5) be disbursed for specific project elements only after all applicable environmental <br/>
<a id="pl.24.15"></a><var>24.15</var>requirements have been met.<br/>
<a id="pl.24.16"></a><var>24.16</var>    Subd. 10. <b>Loans in anticipation of future apportionments.</b> A loan may be made <br/>
<a id="pl.24.17"></a><var>24.17</var>to a county, or to a statutory or home rule charter city having a population of 5,000 or <br/>
<a id="pl.24.18"></a><var>24.18</var>more, in anticipation of repayment of the loan from sums that will be apportioned to a <br/>
<a id="pl.24.19"></a><var>24.19</var>county from the county state-aid highway fund under section 
         <statute_ref>162.07</statute_ref> or to a city from the <br/>
<a id="pl.24.20"></a><var>24.20</var>municipal state-aid street fund under section 
         <statute_ref>162.14</statute_ref>. <br/>
<a id="pl.24.21"></a><var>24.21</var>    Subd. 11. <b>Payment by county or city.</b> Notwithstanding the allocation provisions of <br/>
<a id="pl.24.22"></a><var>24.22</var>section 
         <statute_ref>162.08</statute_ref> for counties, and the apportionment provisions of section 
         <statute_ref>162.14</statute_ref> for cities, <br/>
<a id="pl.24.23"></a><var>24.23</var>sums apportioned under section 
         <statute_ref>162.13</statute_ref> to a statutory or home rule charter city, or under <br/>
<a id="pl.24.24"></a><var>24.24</var>section 
         <statute_ref>162.07</statute_ref> to a county, that has loan repayments due to the transportation revolving <br/>
<a id="pl.24.25"></a><var>24.25</var>loan fund, shall be paid by the commissioner of transportation to the appropriate loan fund <br/>
<a id="pl.24.26"></a><var>24.26</var>to offset the loan repayments that are due. <br/>
<a id="pl.24.27"></a><var>24.27</var>    Subd. 12. <b>Rules of Transportation Committee and authority.</b> The commissioner <br/>
<a id="pl.24.28"></a><var>24.28</var>of the Department of Employment and Economic Development shall adopt administrative <br/>
<a id="pl.24.29"></a><var>24.29</var>rules specifying the procedures that will be used for the administration of the duties of the <br/>
<a id="pl.24.30"></a><var>24.30</var>Transportation Committee and authority. The rules must include criteria, standards, and <br/>
<a id="pl.24.31"></a><var>24.31</var>procedures that will be used for making loans, determining interest rates to be charged on <br/>
<a id="pl.24.32"></a><var>24.32</var>loans, the amount of project financing to be provided, the collateral that will be required, <br/>
<a id="pl.24.33"></a><var>24.33</var>the requirements for dedicated sources of revenue or income streams to ensure repayment <br/>
<a id="pl.24.34"></a><var>24.34</var>of loans, and the length of repayment terms.<br/>
<a id="pl.24.35"></a><var>24.35</var>    Subd. 13. <b>Authority</b><b> Duties</b><b> and Rules of Department</b><b> of Transportation</b><b>.</b><br/>
<a id="pl.24.36"></a><var>24.36</var>The commissioner of transportation shall establish, adopt rules for, and adopt rules to <br/>
<a id="pl.25.1"></a><var>25.1</var>implement a program to identify, assist with the development of, and certify projects <br/>
<a id="pl.25.2"></a><var>25.2</var>eligible for loans under the act this section to the Transportation Committee. Until rules <br/>
<a id="pl.25.3"></a><var>25.3</var>are adopted by the commissioner of transportation, the commissioner of transportation <br/>
<a id="pl.25.4"></a><var>25.4</var>may certify to the Transportation Committee any project that has been reviewed through <br/>
<a id="pl.25.5"></a><var>25.5</var>an approved planning process that qualifies the project to be included in the statewide <br/>
<a id="pl.25.6"></a><var>25.6</var>transportation program or amended into the statewide transportation improvement <br/>
<a id="pl.25.7"></a><var>25.7</var>program authority.<br/>
<a id="pl.25.8"></a><var>25.8</var>    Subd. 14. <b>Joint rules.</b> The commissioner of the Department of Employment and <br/>
<a id="pl.25.9"></a><var>25.9</var>Economic Development and the commissioner of transportation may adopt a single set <br/>
<a id="pl.25.10"></a><var>25.10</var>of rules.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.25.11"></a><var>25.11</var>    Sec. 12. Minnesota Statutes 2006, section 446A.09, is amended to read:<br/>
<a id="pl.25.12"></a><var>25.12</var><b>446A.09 REPORT; AUDIT.</b><br/>
<a id="pl.25.13"></a><var>25.13</var>The authority shall report to the legislature and the governor by January 1 15 of each <br/>
<a id="pl.25.14"></a><var>25.14</var>year. The report must include a complete operating and financial statement covering the <br/>
<a id="pl.25.15"></a><var>25.15</var>authority's operations during the year, including amounts of income from all sources. The <br/>
<a id="pl.25.16"></a><var>25.16</var>report must also include the authority's analysis of the interest rate subsidy provided to <br/>
<a id="pl.25.17"></a><var>25.17</var>borrowers on loans made during the year. Books and records of the authority are subject <br/>
<a id="pl.25.18"></a><var>25.18</var>to audit by the legislative auditor in the manner prescribed for state agencies.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.25.19"></a><var>25.19</var>    Sec. 13. Minnesota Statutes 2006, section 446A.11, subdivision 13, is amended to read:<br/>
<a id="pl.25.20"></a><var>25.20</var>    Subd. 13. <b>Proceeds appropriated to authority.</b> Proceeds of the authority's bonds, <br/>
<a id="pl.25.21"></a><var>25.21</var>notes, and other obligations; amounts granted or appropriated to the authority for the <br/>
<a id="pl.25.22"></a><var>25.22</var>making or purchase or the insurance or guaranty of loans or for bond reserves; income <br/>
<a id="pl.25.23"></a><var>25.23</var>from investment; money in the funds; and all revenues from loans, fees, and charges <br/>
<a id="pl.25.24"></a><var>25.24</var>of the authority including rentals, royalties, dividends, or other proceeds in connection <br/>
<a id="pl.25.25"></a><var>25.25</var>with technology-related products, energy conservation products, or other equipment <br/>
<a id="pl.25.26"></a><var>25.26</var>are annually appropriated to the authority for the accomplishment of its corporate <br/>
<a id="pl.25.27"></a><var>25.27</var>purposes and must be spent, administered, and accounted for in accordance with the <br/>
<a id="pl.25.28"></a><var>25.28</var>applicable provisions of all bond and note resolutions, indentures, and other instruments, <br/>
<a id="pl.25.29"></a><var>25.29</var>contracts, and agreements of the agency authority. Notwithstanding section 
         <statute_ref>16A.28</statute_ref>, these <br/>
<a id="pl.25.30"></a><var>25.30</var>appropriations are available until expended. <br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.25.31"></a><var>25.31</var>    Sec. 14. Minnesota Statutes 2006, section 446A.17, subdivision 1, is amended to read:<br/>
<a id="pl.25.32"></a><var>25.32</var>    Subdivision 1. <b>Nonliability of individuals.</b> No member of the authority, staff of <br/>
<a id="pl.25.33"></a><var>25.33</var>the authority, or other person executing the bonds, loans, interest rate swaps, or other <br/>
<a id="pl.26.1"></a><var>26.1</var>agreements or contracts of the authority is liable personally on the bonds, loans, interest <br/>
<a id="pl.26.2"></a><var>26.2</var>rate swaps, or other agreements or contracts of the authority or is subject to any personal <br/>
<a id="pl.26.3"></a><var>26.3</var>liability or accountability by reason of their issuance, execution, delivery, or performance.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.26.4"></a><var>26.4</var>    Sec. 15. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.26.5"></a><var>26.5</var>(a) The revisor of statutes shall renumber Minnesota Statutes, section 373.45, <br/>
<a id="pl.26.6"></a><var>26.6</var>as Minnesota Statutes, section 446A.086. The revisor shall also make necessary <br/>
<a id="pl.26.7"></a><var>26.7</var>cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the <br/>
<a id="pl.26.8"></a><var>26.8</var>renumbering.<br/>
<a id="pl.26.9"></a><var>26.9</var>(b) The revisor of statutes shall renumber Minnesota Statutes, section 446A.11, <br/>
<a id="pl.26.10"></a><var>26.10</var>subdivisions 1 to 14, as Minnesota Statutes, section 446A.04, subdivisions 8 to 21. The <br/>
<a id="pl.26.11"></a><var>26.11</var>revisor shall also make necessary cross-reference changes in Minnesota Statutes and <br/>
<a id="pl.26.12"></a><var>26.12</var>Minnesota Rules consistent with the renumbering.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.26.13"></a><var>26.13</var>    Sec. 16. <b> REPEALER.</b><br/>
<a id="pl.26.14"></a><var>26.14</var>Minnesota Statutes 2006, sections 446A.05; 446A.06; and 446A.15, subdivision <br/>
<a id="pl.26.15"></a><var>26.15</var>6, are repealed.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="pl.26.18"></a><var>26.18</var><b>RULE MODIFICATION</b><br/>

<a id="bill.2.1.0"></a><a id="pl.26.19"></a><var>26.19</var>    Section 1. Minnesota Statutes 2006, section 116.182, subdivision 5, is amended to read:<br/>
<a id="pl.26.20"></a><var>26.20</var>    Subd. 5. <b>Rules.</b> (a) The agency shall adopt rules for the administration of the <br/>
<a id="pl.26.21"></a><var>26.21</var>financial assistance program. For wastewater treatment projects, the rules must include:<br/>
<a id="pl.26.22"></a><var>26.22</var>(1) application requirements;<br/>
<a id="pl.26.23"></a><var>26.23</var>(2) criteria for the ranking of projects in order of priority based on factors including <br/>
<a id="pl.26.24"></a><var>26.24</var>the type of project and the degree of environmental impact, and scenic and wild river <br/>
<a id="pl.26.25"></a><var>26.25</var>standards; and<br/>
<a id="pl.26.26"></a><var>26.26</var>(3) criteria for determining essential project components.<br/>
<a id="pl.26.27"></a><var>26.27</var>(b) Notwithstanding Minnesota Rules, chapter 7077, the agency shall apply the <br/>
<a id="pl.26.28"></a><var>26.28</var>following criteria to Minnesota Rules, part 7077.0119:<br/>
<a id="pl.26.29"></a><var>26.29</var>(1) ten points shall be assigned if the municipality proposing the project holds a <br/>
<a id="pl.26.30"></a><var>26.30</var>NPDES permit for a municipal separate storm sewer system and is implementing a storm <br/>
<a id="pl.26.31"></a><var>26.31</var>water pollution prevention plan pursuant to Code of Federal Regulations, title 40, section <br/>
<a id="pl.26.32"></a><var>26.32</var>122.34, that addresses requirements resulting from an USEPA-approved TMDL for an <br/>
<a id="pl.27.1"></a><var>27.1</var>impaired water listed under United States Code, title 33, section 303(d), of the Clean <br/>
<a id="pl.27.2"></a><var>27.2</var>Water Act; and<br/>
<a id="pl.27.3"></a><var>27.3</var>(2) up to ten points shall be assigned to a municipal storm water project by <br/>
<a id="pl.27.4"></a><var>27.4</var>multiplying 20 times the ratio of the project area's impervious surface area to the total <br/>
<a id="pl.27.5"></a><var>27.5</var>project area to be served by the proposed best management practices. A maximum of ten <br/>
<a id="pl.27.6"></a><var>27.6</var>points shall be awarded and any fraction of a point shall be rounded up to the nearest <br/>
<a id="pl.27.7"></a><var>27.7</var>whole number.<br/>
<a id="pl.27.8"></a><var>27.8</var>(c) Paragraph (b) expires on June 30, 2012.<br/>