1.1A bill for an act1.2relating to capital improvements; appropriating money for the Board of Water and 1.3Soil Resources; authorizing the sale and issuance of bonds; modifying wetland 1.4replacement requirements;amending Minnesota Statutes 2007 Supplement, 1.5section 103G.222, subdivision 1.1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.8    The sums shown in the column under "Appropriations" are appropriated from the 1.9bond proceeds fund, or another named fund, to the state agencies or officials indicated, 1.10to be spent for public purposes. Appropriations of bond proceeds must be spent as 1.11authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 1.12and better public land and buildings and other public improvements of a capital nature, or 1.13as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or 1.14article XIV. Unless otherwise specified, the appropriations in this act are available until 1.15the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.

1.16APPROPRIATIONS

1.171.18Sec. 2. BOARD OF WATER AND SOIL RESOURCES

1.19Subdivision 1.Total Appropriation$48,000,000

1.20To the Board of Water and Soil Resources 1.21for the purposes specified in this section.1.22The board must record in a central location 1.23each project, funded in whole or in part 2.1with funds from this appropriation, that is 2.2expected to have carbon sequestration value 2.3in anticipation of guidelines written by an 2.4interagency committee in conjunction with 2.5the University of Minnesota for assessing 2.6changes in carbon budgets resulting from 2.7bonded restoration projects, including 2.8identification of relevant carbon pools, time 2.9frames, and measurement protocols.2.10To the extent possible, prairie restorations, 2.11funded in whole or in part with funds from 2.12this appropriation, must be made using best 2.13management practices for native prairie 2.14restoration as defined under Minnesota 2.15Statutes, section 84.02, subdivision 2.

2.16Subd. 2.RIM Reserve Program42,000,000

2.17To acquire conservation easements from 2.18landowners to preserve, restore, and enhance 2.19wetlands, riparian lands, and associated 2.20uplands in order to protect soil and water 2.21quality, support fish and wildlife habitat, 2.22and other public benefits. The provisions of 2.23Minnesota Statutes, section 103F.515, apply 2.24to this appropriation, except that the board 2.25may establish alternative payment rates for 2.26easements and practices to establish restored 2.27native prairies, as defined in Minnesota 2.28Statutes, section 84.02, subdivision 7, and 2.29to protect uplands. Of this appropriation, up 2.30to 10 percent may be used to administer the 2.31program.2.32$2,400,000 of this amount is to be available 2.33for use in the area designated for relief and 2.34recovery from the flooding that occurred 2.35on or after August 18, 2007, in the area 3.1of southeast Minnesota designated under 3.2Presidential Declaration of Major Disaster, 3.3DR-1717. Funds previously appropriated and 3.4waivers previously authorized to the Board 3.5of Water and Soil Resources for DR-1717 3.6flood relief and recovery in Laws 2007, First 3.7Special Session chapter 2, are available and 3.8applicable until June 30, 2010.3.9The board is authorized to enter into and 3.10amend past agreements with landowners 3.11as required by Minnesota Statutes, section 3.12103F.515, subdivision 5, to allow for 3.13overseeding and harvesting of native prairie 3.14vegetation for use for energy production in 3.15a manner that does not devalue the natural 3.16habitat, water quality benefits, or carbon 3.17sequestration functions of the area enrolled 3.18in the easement. This shall occur after seed 3.19production and minimize impacts on wildlife. 3.20Of this appropriation, up to 5 percent may be 3.21used for overseeding.

3.223.23Subd. 3.Wetland Replacement Due to Public Road Projects4,575,000

3.24To acquire land for wetland restoration or 3.25preservation to replace wetlands drained or 3.26filled as a result of the repair or rehabilitation, 3.27reconstruction, or replacement of existing 3.28public roads as required by Minnesota 3.29Statutes, section 103G.222, subdivision 1, 3.30paragraphs (l) and (m). Up to ten percent 3.31may be used to administer the program.3.32The purchase price paid for acquisition 3.33of land, fee, or perpetual easement must 3.34be the fair market value as determined 3.35by the board. The board may enter into 3.36agreements with the federal government, 4.1other state agencies, political subdivisions, 4.2and nonprofit organizations or fee owners to 4.3acquire land and restore and create wetlands 4.4or to acquire wetland banking credits. 4.5Acquisition of or the conveyance of land may 4.6be in the name of the political subdivision.

4.7Subd. 4.Clean Water Legacy1,425,000

4.8$800,000 is to acquire conservation 4.9easements, design and construct water control 4.10structures and pumping infrastructure, and 4.11plant native prairie species of a local ecotype 4.12as defined in Minnesota Statutes, section 4.1384.02, subdivision 6, in order to restore the 4.14Grass Lake prairie wetland basins adjacent 4.15to the city of Willmar in Kandiyohi County. 4.16This amount must be matched one to one by 4.17funding from other sources.4.18$475,000 is for a grant to the city of Gaylord 4.19to improve water quality in the Lake 4.20Titlow watershed. The funds may be used to 4.21predesign and design holding ponds upstream 4.22from Lake Titlow. The design must include 4.23the best location for the ponds, an estimate 4.24of the cost of land acquisition or easements, 4.25construction costs of the holding ponds, and 4.26the estimated expense of maintaining the 4.27structures and who will be responsible for 4.28the expense. The funds may also be used 4.29to construct and reconstruct storm water 4.30sewer drains and related facilities to divert 4.31water that currently drains into Lake Titlow 4.32into holding ponds south of the city. The 4.33cost of reconstructing city streets as part of 4.34this diversion, and as outlined in the city of 4.35Gaylord's street improvement plan, is the 5.1responsibility of the city. This diversion 5.2will keep phosphorus and other chemicals 5.3from entering the lake and will improve 5.4the water quality of Lake Titlow. The city 5.5must also coordinate with state and county 5.6conservation officials to ensure correct 5.7conservation practices and improvements in 5.8the watershed district. For the purposes of 5.9this appropriation, the criteria, limitations, 5.10and assessment requirements in Minnesota 5.11Statutes, sections 103D.701, 103D.705, and 5.12103D.901, are waived. The information 5.13gained from this project must be made 5.14available for public use. This appropriation 5.15is not available until the commissioner of 5.16finance determines that $200,000 has been 5.17committed to the project from other sources.5.18$150,000 is for a grant to the Lower 5.19Minnesota Watershed District to acquire 5.20land for, and to design and construct 5.21improvements for dredge material site 5.22projects located within the district.5.23    Sec. 3. BOND SALE AUTHORIZATION.5.24    To provide the money appropriated in this act from the bond proceeds fund, the 5.25commissioner of finance shall sell and issue bonds of the state in an amount up to 5.26$48,000,000 in the manner, upon the terms, and with the effect prescribed by Minnesota 5.27Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, 5.28sections 4 to 7.5.29    Sec. 4. Minnesota Statutes 2007 Supplement, section 103G.222, subdivision 1, is 5.30amended to read:5.31    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly 5.32or partially, unless replaced by restoring or creating wetland areas of at least equal 5.33public value under a replacement plan approved as provided in section 
         103G.2242, a 5.34replacement plan under a local governmental unit's comprehensive wetland protection 6.1and management plan approved by the board under section 
         103G.2243, or, if a permit to 6.2mine is required under section 
         93.481, under a mining reclamation plan approved by the 6.3commissioner under the permit to mine. Mining reclamation plans shall apply the same 6.4principles and standards for replacing wetlands by restoration or creation of wetland areas 6.5that are applicable to mitigation plans approved as provided in section 
         103G.2242. Public 6.6value must be determined in accordance with section 
         103B.3355 or a comprehensive 6.7wetland protection and management plan established under section 
         103G.2243. Sections 6.8103G.221
          to 
         103G.2372 also apply to excavation in permanently and semipermanently 6.9flooded areas of types 3, 4, and 5 wetlands. 6.10    (b) Replacement must be guided by the following principles in descending order 6.11of priority:6.12    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish 6.13the wetland;6.14    (2) minimizing the impact by limiting the degree or magnitude of the wetland 6.15activity and its implementation;6.16    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected 6.17wetland environment;6.18    (4) reducing or eliminating the impact over time by preservation and maintenance 6.19operations during the life of the activity;6.20    (5) compensating for the impact by restoring a wetland; and6.21    (6) compensating for the impact by replacing or providing substitute wetland 6.22resources or environments.6.23    For a project involving the draining or filling of wetlands in an amount not exceeding 6.2410,000 square feet more than the applicable amount in section 
         103G.2241, subdivision 9, 6.25paragraph (a), the local government unit may make an on-site sequencing determination 6.26without a written alternatives analysis from the applicant. 6.27    (c) If a wetland is located in a cultivated field, then replacement must be 6.28accomplished through restoration only without regard to the priority order in paragraph 6.29(b), provided that a deed restriction is placed on the altered wetland prohibiting 6.30nonagricultural use for at least ten years.6.31    (d) If a wetland is drained under section 
         103G.2241, subdivision 2, paragraphs 6.32(b) and (e), the local government unit may require a deed restriction that prohibits 6.33nonagricultural use for at least ten years unless the drained wetland is replaced as provided 6.34under this section. The local government unit may require the deed restriction if it 6.35determines the wetland area drained is at risk of conversion to a nonagricultural use within 7.1ten years based on the zoning classification, proximity to a municipality or full service 7.2road, or other criteria as determined by the local government unit.7.3    (e) Restoration and replacement of wetlands must be accomplished in accordance 7.4with the ecology of the landscape area affected and ponds that are created primarily to 7.5fulfill stormwater management, and water quality treatment requirements may not be 7.6used to satisfy replacement requirements under this chapter unless the design includes 7.7pretreatment of runoff and the pond is functioning as a wetland.7.8    (f) Except as provided in paragraph (g), for a wetland or public waters wetland 7.9located on nonagricultural land, replacement must be in the ratio of two acres of replaced 7.10wetland for each acre of drained or filled wetland.7.11    (g) For a wetland or public waters wetland located on agricultural land or in a greater 7.12than 80 percent area, replacement must be in the ratio of one acre of replaced wetland 7.13for each acre of drained or filled wetland.7.14    (h) Wetlands that are restored or created as a result of an approved replacement plan 7.15are subject to the provisions of this section for any subsequent drainage or filling.7.16    (i) Except in a greater than 80 percent area, only wetlands that have been restored 7.17from previously drained or filled wetlands, wetlands created by excavation in nonwetlands, 7.18wetlands created by dikes or dams along public or private drainage ditches, or wetlands 7.19created by dikes or dams associated with the restoration of previously drained or filled 7.20wetlands may be used in a statewide banking program established in rules adopted under 7.21section 
         103G.2242, subdivision 1. Modification or conversion of nondegraded naturally 7.22occurring wetlands from one type to another are not eligible for enrollment in a statewide 7.23wetlands bank. 7.24    (j) The Technical Evaluation Panel established under section 
         103G.2242, subdivision 7.252
         , shall ensure that sufficient time has occurred for the wetland to develop wetland 7.26characteristics of soils, vegetation, and hydrology before recommending that the wetland 7.27be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason 7.28to believe that the wetland characteristics may change substantially, the panel shall 7.29postpone its recommendation until the wetland has stabilized. 7.30    (k) This section and sections 
         103G.223 to 
         103G.2242, 
         103G.2364, and 
         103G.23657.31apply to the state and its departments and agencies. 7.32    (l) For projects involving draining or filling of wetlands associated with a new public 7.33transportation road project, and for public road projects expanded solely for additional 7.34traffic capacity, public transportation road authorities may purchase credits from the board 7.35at the cost to the board to establish credits. Proceeds from the sale of credits provided 7.36under this paragraph are appropriated to the board for the purposes of this paragraph.8.1For purposes of this paragraph, public road authorities include the state of Minnesota, 8.2counties, cities, and townships.8.3    (m) A replacement plan for wetlands is not required for individual projects that 8.4result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, 8.5or replacement of a currently serviceable existing state, city, county, or town public road 8.6necessary, as determined by the public transportation authority, to meet state or federal 8.7design or safety standards or requirements, excluding new roads or roads expanded solely 8.8for additional traffic capacity lanes. This paragraph only applies to authorities for public 8.9transportation projects that:8.10    (1) minimize the amount of wetland filling or draining associated with the project 8.11and consider mitigating important site-specific wetland functions on-site;8.12    (2) except as provided in clause (3), submit project-specific reports to the board, the 8.13Technical Evaluation Panel, the commissioner of natural resources, and members of the 8.14public requesting a copy at least 30 days prior to construction that indicate the location, 8.15amount, and type of wetlands to be filled or drained by the project or, alternatively, 8.16convene an annual meeting of the parties required to receive notice to review projects to 8.17be commenced during the upcoming year; and8.18    (3) for minor and emergency maintenance work impacting less than 10,000 square 8.19feet, submit project-specific reports, within 30 days of commencing the activity, to the 8.20board that indicate the location, amount, and type of wetlands that have been filled 8.21or drained.8.22    Those required to receive notice of public transportation projects may appeal 8.23minimization, delineation, and on-site mitigation decisions made by the public 8.24transportation authority to the board according to the provisions of section 
         103G.2242, 8.25subdivision 9
         . The Technical Evaluation Panel shall review minimization and delineation 8.26decisions made by the public transportation authority and provide recommendations 8.27regarding on-site mitigation if requested to do so by the local government unit, a 8.28contiguous landowner, or a member of the Technical Evaluation Panel. 8.29    Except for state public transportation projects, for which the state Department of 8.30Transportation is responsible, the board must replace the wetlands, and wetland areas of 8.31public waters if authorized by the commissioner or a delegated authority, drained or filled 8.32by public transportation projects on existing roads.8.33    Public transportation authorities at their discretion may deviate from federal and 8.34state design standards on existing road projects when practical and reasonable to avoid 8.35wetland filling or draining, provided that public safety is not unreasonably compromised. 8.36The local road authority and its officers and employees are exempt from liability for 9.1any tort claim for injury to persons or property arising from travel on the highway and 9.2related to the deviation from the design standards for construction or reconstruction under 9.3this paragraph. This paragraph does not preclude an action for damages arising from 9.4negligence in construction or maintenance on a highway.9.5    (n) If a landowner seeks approval of a replacement plan after the proposed project 9.6has already affected the wetland, the local government unit may require the landowner to 9.7replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise 9.8required.9.9    (o) A local government unit may request the board to reclassify a county or 9.10watershed on the basis of its percentage of presettlement wetlands remaining. After 9.11receipt of satisfactory documentation from the local government, the board shall change 9.12the classification of a county or watershed. If requested by the local government unit, 9.13the board must assist in developing the documentation. Within 30 days of its action to 9.14approve a change of wetland classifications, the board shall publish a notice of the change 9.15in the Environmental Quality Board Monitor.9.16    (p) One hundred citizens who reside within the jurisdiction of the local government 9.17unit may request the local government unit to reclassify a county or watershed on the basis 9.18of its percentage of presettlement wetlands remaining. In support of their petition, the 9.19citizens shall provide satisfactory documentation to the local government unit. The local 9.20government unit shall consider the petition and forward the request to the board under 9.21paragraph (o) or provide a reason why the petition is denied.9.22    Sec. 5. EFFECTIVE DATE.9.23    Except as otherwise provided, this act is effective the day following final enactment.