1.1A bill for an act1.2relating to capital improvements; authorizing spending to acquire public lands 1.3and buildings and for other improvements of a capital nature; appropriating 1.4money for environmental and natural resources capital projects; establishing new 1.5programs and modifying existing programs; authorizing the sale and issuance of 1.6state bonds;amending Minnesota Statutes 2006, section 103G.271, subdivision 1.76; Minnesota Statutes 2007 Supplement, section 103G.222, subdivision 1; 1.8proposing coding for new law in Minnesota Statutes, chapter 116.1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.11    The sums shown in the column under "Appropriations" are appropriated from the 1.12bond proceeds fund, or another named fund, to the state agencies or officials indicated, 1.13to be spent for public purposes. Appropriations of bond proceeds must be spent as 1.14authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 1.15and better public land and buildings and other public improvements of a capital nature, or 1.16as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or 1.17article XIV. Unless otherwise specified, the appropriations in this act are available until 1.18the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.

1.19Sec. 2. NATURAL RESOURCES

1.20Subdivision 1.Total Appropriation$153,587,000

1.21To the commissioner of natural resources for 1.22the purposes specified in this section.1.23The appropriations in this section are subject 1.24to the requirements of the natural resources 1.25capital improvement program set forth in 2.1Minnesota Statutes, section 86A.12, unless 2.2this section or the statutes referred to in this 2.3section provide more specific standards, 2.4criteria, or priorities for projects than 2.5Minnesota Statutes, section 86A.12.2.6To the extent possible, prairie restorations 2.7funded in whole or in part with funds from 2.8this appropriation must be made using best 2.9management practices for native prairie 2.10restoration as defined under Minnesota 2.11Statutes, section 84.02, subdivision 2.2.12The commissioner must record in a central 2.13location each project funded in whole or in 2.14part with funds from this appropriation, that 2.15is expected to have carbon sequestration 2.16value in anticipation of guidelines written by 2.17an interagency committee in conjunction with 2.18the University of Minnesota for assessing 2.19changes in carbon budgets resulting from 2.20bonded restoration projects including 2.21identification of relevant carbon pools, time 2.22frames, and measurement protocols.

2.23Subd. 2.Statewide Asset Preservation1,000,000

2.24For the renovation of state-owned facilities 2.25operated by the commissioner of natural 2.26resources, to be spent in accordance with 2.27Minnesota Statutes, section 16B.307. The 2.28commissioner may use this appropriation 2.29to replace buildings if, considering the 2.30embedded energy in the building, that is the 2.31most energy efficient and carbon reducing 2.32method of renovation.

2.33Subd. 3.Flood Hazard Mitigation Grants16,000,000

2.34For the state share of flood hazard 2.35mitigation grants for publicly owned capital 3.1improvements to prevent or alleviate flood 3.2damage under Minnesota Statutes, section 3.3103F.161.3.4$3,500,000 is for a grant to the Western 3.5Mesabi Mine Planning Board to construct a 3.6conveyance system, and other improvements 3.7to accommodate water level and outflow 3.8control of the water level in the Canisteo 3.9mine pit in Itasca County. This appropriation 3.10does not require a local match. The 3.11commissioner of natural resources shall be 3.12responsible to maintain the improvements 3.13after completion of the project.3.14$3,500,000 is for a grant to the Minneapolis 3.15Park and Recreation Board to be used in 3.16conjunction with the Minnehaha Creek 3.17Watershed District's plan to repair and 3.18renovate Works Projects Administration 3.19projects in the glen area of Minnehaha 3.20Creek to repair, restore, and stabilize the 3.21shoreline and cavernous banks of Minnehaha 3.22Creek as it flows past Minnehaha Falls, to 3.23restore fish and other natural habitat, and 3.24to provide storm water retention and creek 3.25bank management at or below the Minnesota 3.26Veterans Home. This appropriation is 3.27not available until the commissioner of 3.28finance determines that $2,000,000 has been 3.29committed to the project from nonstate 3.30sources.3.31This appropriation also includes money for 3.32the following projects, based on need as 3.33determined by the commissioner, except that 3.34one-third of the unallocated appropriation 3.35shall be used to create and restore wetlands 4.1to protect areas from flooding, with emphasis 4.2on areas that have recently flooded:4.3(a) Austin4.4(b) Breckenridge4.5(c) Browns Valley4.6(d) Crookston4.7(e) Granite Falls4.8(f) Inver Grove Heights Heritage Park4.9(g) Moorhead4.10(h) Montevideo4.11(i) North Ottawa Impoundment4.12(j) Roseau4.13For any project listed in this subdivision 4.14that the commissioner determines is not 4.15ready to proceed or does not expend all the 4.16money allocated to it, the commissioner may 4.17allocate that project's money to a project on 4.18the commissioner's priority list.4.19To the extent that the cost of a project 4.20in Austin, Breckenridge, Browns Valley, 4.21Crookston, Granite Falls, Montevideo, North 4.22Ottawa Impoundment, or Roseau exceeds 4.23two percent of the median household income 4.24in the municipality multiplied by the number 4.25of households in the municipality, this 4.26appropriation is also for the local share of the 4.27project.4.28The Roseau project includes the state share 4.29of land acquisition, engineering and design, 4.30and bridge construction costs for the U. S. 4.31Army Corps of Engineers East Diversion 4.32Flood Control Project, which will protect the 4.33city of Roseau from recurring flooding.

5.1Subd. 4.Flood Control Project Relocation12,000,000

5.2For a grant to the city of Crookston to design, 5.3construct, furnish, and equip an ice arena 5.4complex to replace an existing facility that is 5.5being relocated to accommodate a planned 5.6flood control project. This appropriation is 5.7not available until the commissioner has 5.8determined that the city of Crookston has 5.9committed at least $1,720,825 to the project.

5.10Subd. 5.Stillwater Flood Control Phase III200,000

5.11For a grant under Minnesota Statutes, 5.12section 103F.161, to the city of  Stillwater to 5.13predesign, design, and begin construction 5.14of Phase III of the Stillwater flood control 5.15project, including flood control structures and 5.16pumping stations. The appropriation is not 5.17available until the commissioner determines 5.18that $2,000,000 has been committed to the 5.19project from nonstate sources.

5.20Subd. 6.Dam Renovation and Removal2,500,000

5.21To renovate or remove publicly owned dams. 5.22The commissioner shall determine project 5.23priorities as appropriate under Minnesota 5.24Statutes, sections 103G.511 and 103G.515.5.25This appropriation includes money for the 5.26following projects:5.27(a) Clayton Lake, Pine County5.28(b) Cross Lake, Pine County5.29(c) Hartley, Saint Louis County5.30(d) King's Mill, Rice County5.31(e) Lake Bronson, Kittson County5.32(f) Luverne, Rock County6.1(g) Windom, Cottonwood County6.2Notwithstanding Minnesota Statutes, section 6.316A.69, subdivision 2, upon the award of 6.4final contracts for the completion of a project 6.5listed in this subdivision, the commissioner 6.6may transfer the unencumbered balance 6.7in the project account to any other dam 6.8renovation or removal project on the 6.9commissioner's priority list.

6.10Subd. 7.Water Control Structures1,000,000

6.11To rehabilitate or replace water control 6.12structures used to manage shallow lakes and 6.13wetlands for waterfowl habitat on wildlife 6.14management areas under Minnesota Statutes, 6.15section 86A.05, subdivision 8.

6.16Subd. 8.Groundwater Monitoring Wells750,000

6.17To install new groundwater level monitoring 6.18wells to monitor and assess groundwater for 6.19water supply planning, including ten to 15 6.20wells in the metropolitan and adjoining areas 6.21and several new monitoring wells in the 6.22south central regions of the state to monitor 6.23the Mt. Simon aquifer. This appropriation 6.24may also be used to seal existing monitoring 6.25wells that are no longer functional. Of this 6.26appropriation, $250,000 is from the natural 6.27resources fund in fiscal year 2009.

6.286.29Subd. 9.Mississippi River Aquatic Invasive Species Barrier500,000

6.30To predesign and design an adequate barrier 6.31in the Mississippi River in order to prevent 6.32aquatic invasive species from migrating 6.33upriver. This money may be used by the 6.34commissioner to match available federal 6.35dollars and dollars from other states. The 7.1commissioner must inform and work with 7.2affected federal and state agencies and local 7.3communities along the Mississippi River 7.4before construction of a river barrier.

7.5Subd. 10.Stream Protection and Restoration2,000,000

7.6For the design and construction of stream 7.7protection and restoration projects that 7.8concentrate on downstream flooding 7.9protection. One-half of this appropriation 7.10is for projects within the seven-county 7.11metropolitan area and one-half is for projects 7.12outside of the seven-county metropolitan 7.13area.

7.147.15Subd. 11.Shoreline and Critical Aquatic Habitat Acquisition1,000,000

7.16To acquire land that is critical for fish 7.17and other aquatic life under Minnesota 7.18Statutes, section 86A.05, and to make 7.19public improvements and betterments of a 7.20capital nature to aquatic management areas 7.21established under Minnesota Statutes, section 7.2286A.05, subdivision 14.

7.23Subd. 12.Fish Hatchery Improvements2,000,000

7.24For improvements of a capital nature to 7.25create ponds and renovate fish culture 7.26facilities at hatcheries owned by the state 7.27and operated by the commissioner of 7.28natural resources under Minnesota Statutes, 7.29section 97A.045, subdivision 1, except those 7.30operated in wetlands.

7.31Subd. 13.Water Access Acquisition650,000

7.32For public water access acquisition, 7.33construction, and renovation projects of a 7.34capital nature on lakes and rivers, including 8.1water access through the provision of fishing 8.2piers and shoreline access under Minnesota 8.3Statutes, section 86A.05, subdivision 9.

8.48.5Subd. 14.State Fair Fish Habitat Educational Display800,000

8.6To design, construct, furnish, and equip the 8.7renovation of the fish habitat educational 8.8display at the Minnesota State Fair.

8.98.10Subd. 15.Native Prairie Bank Acquisition and Development5,000,000

8.11To acquire tracts of native prairie bank lands 8.12under Minnesota Statutes, section 84.96, and 8.13to develop and restore certain tracts of prairie 8.14bank lands. Prairie restorations, funded 8.15in whole or in part with funds from this 8.16appropriation, must use native prairie species 8.17of a local ecotype as defined in Minnesota 8.18Statutes, section 84.02, subdivision 6.

8.198.20Subd. 16.Scientific and Natural Area Acquisition and Development1,000,000

8.21To acquire land for scientific and natural 8.22areas and for protection and improvements of 8.23a capital nature to scientific and natural areas 8.24under Minnesota Statutes, sections 84.033 8.25and 86A.05, subdivision 5.8.26This appropriation includes money for the 8.27following projects:8.28(a) Avon Hills Forest SNA additions in 8.29Stearns County8.30(b) Big Woods of Cottonwood River in Lyon 8.31County8.32(c) Clinton Falls Dwarf Trout Lily site in 8.33Steele County9.1(d) Cooks Lake Forest in Otter Tail and 9.2Becker Counties9.3(e) Des Moines R forest-prairie complex in 9.4Jackson County9.5(f) Franconia Bluffs in Chisago County9.6(g) Hovland Woods SNA addition in Cook 9.7County9.8(h) Lester Lake Forest in Hubbard County9.9(i) Morton Outcrops in Renville County9.10(j) Nopeming Unconformity in Saint Louis 9.11County9.12(k) Pine Bend Bluffs SNA addition in Dakota 9.13County9.14(l) Wycoff Balsam Fir SNA addition in 9.15Fillmore County

9.169.17Subd. 17.Wildlife Area Acquisition and Improvement14,000,000

9.18To acquire land in fee for wildlife 9.19management area purposes and for 9.20improvements of a capital nature to develop, 9.21protect, or improve habitat and facilities on 9.22wildlife management areas under Minnesota 9.23Statutes, section 86A.05, subdivision 8. At 9.24least five percent of this appropriation must 9.25be used for restoration of existing wildlife 9.26management areas. Twenty percent of this 9.27appropriation is for restoration on land 9.28acquired with this appropriation. Twenty 9.29percent of this appropriation is for acquisition 9.30of land in the seven-county metro area. 9.31Prairie restorations, funded in whole or in 9.32part with funds from this appropriation, must 9.33use native prairie species of a local ecotype 9.34as defined in Minnesota Statutes, section 10.184.02, subdivision 6. The commissioner 10.2shall submit a plan to the legislature and the 10.3chairs of the house and senate committees 10.4with jurisdiction over the environment 10.5and natural resources on the management 10.6of native prairie lands and harvesting of 10.7native prairie vegetation for use for energy 10.8production in a manner that does not devalue 10.9the natural habitat, water quality benefits, or 10.10carbon sequestration functions.

10.11Subd. 18.RIM Critical Habitat Match3,000,000

10.12To provide the state match for the critical 10.13habitat private sector matching account under 10.14Minnesota Statutes, section 84.943.

10.15Subd. 19.Forest Roads and Bridges1,000,000

10.16For reconstruction, resurfacing, replacement, 10.17and construction of state forest roads and 10.18bridges under Minnesota Statutes, section 10.1989.002.

10.20Subd. 20.State Forest Land Reforestation6,000,000

10.21To increase reforestation activities to meet 10.22the reforestation requirements of Minnesota 10.23Statutes, section 89.002, subdivision 2, 10.24including planting, seeding, site preparation, 10.25and purchasing native seeds and native 10.26seedlings.

10.27Subd. 21.Big Bog State Recreation Area1,600,000

10.28For improvements at the Big Bog State 10.29Recreation Area, including upgrades to the 10.30contact station and forest restoration.

10.3110.32Subd. 22.Cuyuna Country State Recreation Area125,000

10.33To construct a new access road, rustic 10.34campground, and support facilities for 11.1biking and scuba activities and for other 11.2improvements of a capital nature at the 11.3Cuyuna Country State Recreation Area.

11.411.5Subd. 23.State Park and Recreation Area Facility Improvements8,000,000

11.6For projects within state parks established 11.7under Minnesota Statutes, section 85.012, 11.8and state recreation areas established under 11.9Minnesota Statutes, section 85.013, contained 11.10in the Department of Natural Resources, 11.11Division of Parks and Recreation's ten-year 11.12project list for the first biennium "New and 11.13Deferred Maintenance Bondable Projects" 11.14dated January 24, 2008. This appropriation 11.15includes money for Afton, Bear Head Lake, 11.16Beaver Creek Valley, Big Stone Lake, Blue 11.17Mounds, Buffalo River, Camden, Cascade 11.18River, Cuyuna Country State Recreation 11.19Area, Flandrau, Forestville Mystery Cave, 11.20Fort Ridgely, Frontenac, George Crosby 11.21Manitou, Glendalough, Great River Bluffs, 11.22Itasca, Judge Magney, Kilen Woods, 11.23Lake Bemidji, Lake Carlos, Lake Louise, 11.24Maplewood, Mille Lacs Kathio, Sakatah, 11.25Savanna Portage, Sibley, Soudan Mine, 11.26Split Rock Creek, Split Rock Lighthouse, 11.27Temperance River, Tettegouche, Upper Sioux 11.28Agency, Whitewater, and William O'Brien 11.29State Parks and deciduous forest restoration 11.30in region 3. The commissioner shall 11.31determine project priorities as appropriate, 11.32based on need.

11.3311.34Subd. 24.State Park Rehabilitation and Development12,000,000

11.35For deferred maintenance including 11.36infrastructure rehabilitation and the 12.1renovation and development of facilities 12.2within state parks established under 12.3Minnesota Statutes, section 85.012, 12.4contained in the Department of Natural 12.5Resources, Division of Parks and Recreation's 12.6ten-year project list for the first biennium 12.7"New and Deferred Maintenance Bondable 12.8Projects" dated January 24, 2008. This 12.9appropriation includes money for Afton, 12.10Banning, Bear Head Lake, Beaver Creek 12.11Valley, Big Stone Lake, Blue Mounds, 12.12Camden, Crow Wing, Flandrau, Forestville 12.13Mystery Cave, Fort Ridgely, Fort Snelling, 12.14Frontenac, Glacial Lakes, Glendalough, 12.15Gooseberry Falls, Hayes Lake, Hill Annex, 12.16Itasca, Jay Cooke, Judge Magney, Lake 12.17Bemidji, Lake Bronson, Lake Carlos, 12.18Lake Louise, Lake Maria, Lake Shetek, 12.19Maplewood, McCarthy Beach, Minneopa, 12.20Moose Lake, Myre-Big Island, Nerstrand, 12.21Old Mill, Rice Lake, Sakatah, Savanna 12.22Portage, Scenic, Sibley, Soudan Mine, Split 12.23Rock Lighthouse, St. Croix, Temperance 12.24River, Tettegouche, Upper Sioux Agency, 12.25Wild River, and William O'Brien State Parks. 12.26The commissioner shall determine project 12.27priorities as appropriate, based on need.

12.2812.29Subd. 25.Lake Vermilion State Park Acquisition and Development17,500,000

12.30To acquire land for Lake Vermilion State 12.31Park and to predesign, design, construct, and 12.32furnish park facilities for the development 12.33of the park.

12.34Subd. 26.Green Leaf State Recreation Area1,000,000

13.1To acquire land for Green Leaf State 13.2Recreation Area authorized under Minnesota 13.3Statutes, section 85.013, subdivision 11b.

13.413.5Subd. 27.State Park Prairie Reconstruction and Forest Restoration Projects545,000

13.6$290,000 is for prairie and savanna 13.7reconstruction projects at the following state 13.8parks: Big Stone, Blue Mounds, Camden, 13.9Crow Wing, Frontenac, Glacial Lakes, 13.10Maplewood, Split Rock Creek, Upper Sioux, 13.11and William O'Brien.13.12$255,000 is for forest restoration projects 13.13at the following state parks: Itasca, Lake 13.14Bemidji, Nerstrand, and St. Croix.13.15Prairie restorations, funded in whole or in 13.16part with funds from this appropriation, 13.17must include planting native prairie species 13.18of a local ecotype as defined in Minnesota 13.19Statutes, section 84.02, subdivision 6.

13.20Subd. 28.Regional and Local Park Grants14,642,000

13.21$492,000 is for a grant to the Central 13.22Minnesota Regional Parks and Trails 13.23Coordination Board to acquire 23 acres of 13.24land adjacent to Warner Lake Park in Stearns 13.25County.13.26$1,400,000 is for a grant to Chisago City 13.27to acquire land for the creation of Ojiketa 13.28Regional Park in Chisago County.13.29$4,000,000 is for a grant to the city of Sartell 13.30to acquire 68 acres of land located along 13.31the Sauk River near the confluence of the 13.32Mississippi to serve as part of the Central 13.33Minnesota Regional Parks and Trails.14.1$750,000 is for a grant to Stearns County 14.2to purchase land for Kraemer Lake Park 14.3under Minnesota Statutes, section 85.019, 14.4subdivision 2.14.5$8,000,000 is for a grant to Wright County 14.6to acquire land for Bertram Chain of 14.7Lakes Regional Park, under Minnesota 14.8Statutes, section 85.019, subdivision 2. This 14.9appropriation is not available unless an 14.10easement is placed on the land keeping the 14.11land as a park in perpetuity.

14.1214.13Subd. 29.State Trail Acquisition and Development13,520,000

14.14To acquire land for and to construct and 14.15renovate state trails under Minnesota 14.16Statutes, section 85.015.14.17$970,000 is for the Chester Woods Trail from 14.18Rochester to Dover.14.19$750,000 is for the Gateway Trail bridge.14.20$1,600,000 is for the Gitchi-Gami Trail.14.21$1,200,000 is for the Great River Ridge Trail.14.22$500,000 is for the Heartland Trail.14.23$150,000 is for the Mill Towns Trail in 14.24Faribault.14.25$500,000 is for the Mill Towns Trail from 14.26Lake Byllesby Park to Cannon Falls.14.27$1,500,000 is for the Minnesota River Trail 14.28from Appleton to Milan.14.29$2,000,000 is for the Paul Bunyan Trail from 14.30Walker to Guthrie.14.31$100,000 is for the Root River Trail, the 14.32eastern extension.15.1$250,000 is for the Root River Trail, the 15.2eastern extension Wagon Wheel.15.3$4,000,000 is for the rehabilitation of state 15.4trails.15.5For any project listed in this subdivision that 15.6the commissioner determines is not ready 15.7to proceed, the commissioner may allocate 15.8that project's money to another state trail 15.9project identified in this subdivision. The 15.10chairs of the house and senate committees 15.11with jurisdiction over the environment and 15.12natural resources and legislators from the 15.13affected legislative districts must be notified 15.14of any changes.

15.15Subd. 30.Regional and Local Trails Grants5,480,000

15.16$2,183,000 is for a grant to Anoka County as 15.17the local share to match federal funds for the 15.18Rice Creek North Regional Trail from Rice 15.19Creek Chain of Lakes Park Reserve in Lino 15.20Lakes to the Ramsey County trail system in 15.21Shoreview.15.22$225,000 is for a grant to Clara City to design 15.23and construct a walking path in Clara City.15.24$500,000 is for a grant to the city of Coon 15.25Rapids to predesign, design, and construct 15.26a bicycle and pedestrian trail connecting 15.27the city of Fridley bicycle and pedestrian 15.28trail along 85th Avenue to the Mississippi 15.29Regional Trail Corridor in the city of Coon 15.30Rapids.15.31$2,000,000 is for a grant to the city of 15.32Minneapolis to purchase, install, and 15.33replace lighting fixtures along the Grand 15.34Rounds. This appropriation may also 16.1be used to improve the roadway of the 16.2Grand Rounds. Any outdoor lighting 16.3fixtures installed, replaced, maintained, or 16.4operated with these funds must be a full 16.5cutoff luminaire, as defined in Minnesota 16.6Statutes, section 16B.328, subdivision 1, 16.7if the rated output of the outdoor lighting 16.8fixture is greater than 1,800 lumens, and 16.9be the minimum illuminance adequate for 16.10the intended purpose with consideration 16.11given to nationally recognized standards. 16.12Full consideration must be given to energy 16.13conservation and savings, reduction of 16.14glare, minimization of light pollution, and 16.15preservation of the natural night environment.16.16$100,000 is for a grant to the city of Inver 16.17Grove Heights for the Mississippi River 16.18Bridge 5600 between Inver Grove Heights 16.19and St. Paul Park.16.20$100,000 is for a grant to the city of Mora 16.21for construction of pedestrian and bicycle 16.22trails, bridge restoration and renovation, and 16.23other improvements of a capital nature for 16.24the Spring Lake Trail, located in the city of 16.25Mora.16.26$372,000 is for a grant to the city of Rockville 16.27to design and construct the Rocori Trail from 16.28Richmond through Cold Spring to Rockville, 16.29connecting with the Glacial Lakes Trail, the 16.30Beaver Island Trail, and the Lake Wobegon 16.31Trail.16.32For any project listed in this subdivision that 16.33the commissioner determines is not ready 16.34to proceed, the commissioner may allocate 16.35that project's money to another state trail 17.1project identified in this subdivision. The 17.2chairs of the house and senate committees 17.3with jurisdiction over the environment and 17.4natural resources and legislators from the 17.5affected legislative districts must be notified 17.6of any changes.

17.7Subd. 31.Old Cedar Avenue Bridge2,000,000

17.8For a grant to the city of Bloomington 17.9to renovate the old Cedar Avenue bridge 17.10to serve as a hiking and bicycling trail 17.11connection.

17.1217.13Subd. 32.Fort Snelling Upper Bluff Emergency Building Stabilization500,000

17.14For a grant to Hennepin County to conduct 17.15emergency building stabilization at Fort 17.16Snelling Upper Bluff. This appropriation 17.17is not available until the commissioner of 17.18finance has determined that Hennepin County 17.19has entered into appropriate agreements to 17.20use Sentence to Serve labor for the project 17.21that will train the Sentence to Serve laborers 17.22in the skills needed for the work.

17.23Subd. 33.Bell Museum Landscaping4,000,000

17.24To design and construct an environmental 17.25landscape at the new Bell Museum of Natural 17.26History.

17.2717.28Subd. 34.Diseased Shade Tree Removal and Replacement1,500,000

17.29For grants to cities, counties, townships, and 17.30park and recreation boards in cities of the 17.31first class for the identification, removal, 17.32disposal, and replacement of dead or dying 17.33shade trees lost to forest pests or disease. 17.34For purposes of this appropriation, "shade 17.35tree" means a woody perennial grown 18.1primarily for aesthetic or environmental 18.2purposes with minimal to residual timber 18.3value. The commissioner shall consult 18.4with municipalities, park and recreation 18.5boards in cities of the first class, nonprofit 18.6organizations, and other interested parties in 18.7developing eligibility criteria.

18.8Subd. 35.Lake Zumbro175,000

18.9For a grant to Olmsted and Wabasha Counties 18.10to design and engineer the restoration of 18.11Lake Zumbro. The design must include 18.12public access.

18.1318.14Subd. 36.Red River Basin Digital Elevation Model600,000

18.15To develop and implement a high-resolution 18.16digital elevation model for the Red River 18.17basin. This appropriation is from the general 18.18fund.

18.19Sec. 3. POLLUTION CONTROL AGENCY

18.20Subdivision 1.Total Appropriation$16,500,000

18.21To the Pollution Control Agency for the 18.22purposes specified in this section.

18.23Subd. 2.Closed Landfill Program9,000,000

18.24To design and construct remedial systems 18.25and acquire land at landfills throughout the 18.26state in accordance with the closed landfill 18.27program under Minnesota Statutes, sections 18.28115B.39 to 115B.42. $600,000 is for the 18.29Mille Lacs Landfill. None of these funds 18.30may be spent on the Washington County 18.31landfill until a mutual agreement regarding 18.32the cleanup is made between the agency and 18.33the city of Lake Elmo.

19.1Subd. 3.Remedial Systems; Albert Lea2,500,000

19.2To design and construct remedial systems at 19.3the Albert Lea Landfill, including relocating 19.4and incorporating waste from the former 19.5Albert Lea Dump owned by the city of Albert 19.6Lea pursuant to Minnesota Statutes, section 19.7115B.403, which action may be taken by the 19.8Pollution Control Agency notwithstanding 19.9the provisions of Minnesota Statutes, section 19.10115B.403, paragraphs (a) and (b).

19.1119.12Subd. 4.Beneficial Reuse of Wastewater Grant Program5,000,000

19.13For grants to political subdivisions for up 19.14to 50 percent of the costs to predesign and 19.15design capital projects that demonstrate the 19.16beneficial use of wastewater under Minnesota 19.17Statutes, section 116.195.

19.1819.19Sec. 4. BOARD OF WATER AND SOIL RESOURCES

19.20Subdivision 1.Total Appropriation$48,000,000

19.21To the Board of Water and Soil Resources 19.22for the purposes specified in this section.19.23The board must record in a central location 19.24each project, funded in whole or in part 19.25with funds from this appropriation, that is 19.26expected to have carbon sequestration value 19.27in anticipation of guidelines written by an 19.28interagency committee in conjunction with 19.29the University of Minnesota for assessing 19.30changes in carbon budgets resulting from 19.31bonded restoration projects, including 19.32identification of relevant carbon pools, time 19.33frames, and measurement protocols.20.1To the extent possible, prairie restorations, 20.2funded in whole or in part with funds from 20.3this appropriation, must be made using best 20.4management practices for native prairie 20.5restoration as defined under Minnesota 20.6Statutes, section 84.02, subdivision 2.

20.7Subd. 2.RIM Reserve Program42,000,000

20.8To acquire conservation easements from 20.9landowners to preserve, restore, and enhance 20.10wetlands, riparian lands, and associated 20.11uplands in order to protect soil and water 20.12quality, support fish and wildlife habitat, 20.13and other public benefits. The provisions of 20.14Minnesota Statutes, section 103F.515, apply 20.15to this appropriation, except that the board 20.16may establish alternative payment rates for 20.17easements and practices to establish restored 20.18native prairies, as defined in Minnesota 20.19Statutes, section 84.02, subdivision 7, and 20.20to protect uplands. Of this appropriation, up 20.21to ten percent may be used to administer the 20.22program.20.23$2,400,000 of this amount is to be available 20.24for use in the area designated for relief and 20.25recovery from the flooding that occurred 20.26on or after August 18, 2007, in the area 20.27of Southeast Minnesota designated under 20.28Presidential Declaration of Major Disaster, 20.29DR-1717. Funds previously appropriated and 20.30waivers previously authorized to the Board 20.31of Water and Soil Resources for DR-1717 20.32flood relief and recovery in Minnesota Laws 20.332007, First Special Session chapter 2, are 20.34available and applicable until June 30, 2010.21.1The board is authorized to enter into and 21.2amend past agreements with landowners 21.3as required by Minnesota Statutes, section 21.4103F.515, subdivision 5, to allow for 21.5restoration, including overseeding and 21.6harvesting, of native prairie vegetation for 21.7use for energy production in a manner that 21.8does not devalue the natural habitat, water 21.9quality benefits, or carbon sequestration 21.10functions of the area enrolled in the easement. 21.11This shall occur after seed production and 21.12minimize impacts on wildlife. Of this 21.13appropriation, up to five percent may be used 21.14for restoration, including overseeding.

21.1521.16Subd. 3.Wetland Replacement Due to Public Road Projects4,575,000

21.17To acquire land for wetland restoration or 21.18preservation to replace wetlands drained or 21.19filled as a result of the repair or rehabilitation, 21.20reconstruction, or replacement of existing 21.21public roads as required by Minnesota 21.22Statutes, section 103G.222, subdivision 1, 21.23paragraphs (l) and (m). The provisions of 21.24Minnesota Statutes, section 103F.515, apply 21.25to this appropriation, except that the board 21.26may establish alternative payment rates for 21.27easements and practices to establish restored 21.28native prairies, as defined in Minnesota 21.29Statutes, section 84.02, subdivision 7, and to 21.30protect uplands. Up to ten percent may be 21.31used to administer the program.21.32The purchase price paid for acquisition of 21.33land, in fee or perpetual easement, must 21.34be the fair market value as determined 21.35by the board. The board may enter into 21.36agreements with the federal government, 22.1other state agencies, political subdivisions, 22.2and nonprofit organizations or fee owners to 22.3acquire land and restore and create wetlands 22.4or to acquire wetland banking credits. 22.5Acquisition of or the conveyance of land may 22.6be in the name of the political subdivision.

22.7Subd. 4.Clean Water Legacy1,425,000

22.8$1,425,000 is for improving water quality. 22.9The board may expend this amount for the 22.10following purposes:22.11(1) $800,000 for a grant to Kandiyohi 22.12County to acquire conservation easements, 22.13design and construct water control structures 22.14and pumping infrastructure, and plant 22.15native prairie species of a local ecotype as 22.16defined in Minnesota Statutes, section 84.02, 22.17subdivision 6, in order to restore the Grass 22.18Lake prairie wetland basins adjacent to the 22.19city of Willmar in Kandiyohi County. This 22.20amount must be matched one-to-one by 22.21funding from other sources;22.22(2) $475,000 for a grant to the city of 22.23Gaylord to improve water quality in the Lake 22.24Titlow watershed. The funds may be used to 22.25predesign and design holding ponds upstream 22.26from Lake Titlow. The design must include 22.27the best location for the ponds, an estimate 22.28of the cost of land acquisition or easements, 22.29construction costs of the holding ponds, and 22.30the estimated expense of maintaining the 22.31structures and who will be responsible for 22.32the expense. The funds may also be used 22.33to construct and reconstruct storm water 22.34sewer drains and related facilities to divert 22.35water that currently drains into Lake Titlow 23.1into holding ponds south of the city. The 23.2cost of reconstructing city streets as part of 23.3this diversion, and as outlined in the city of 23.4Gaylord's street improvement plan, is the 23.5responsibility of the city. This diversion 23.6will keep phosphorus and other chemicals 23.7from entering the lake, and will improve 23.8the water quality of Lake Titlow. The city 23.9must also coordinate with state and county 23.10conservation officials to ensure correct 23.11conservation practices and improvements in 23.12the watershed district. For the purposes of 23.13this appropriation, the criteria, limitations, 23.14and assessment requirements in Minnesota 23.15Statutes, sections 103D.701, 103D.705, and 23.16103D.901, are waived. The information 23.17gained from this project must be made 23.18available for public use. This appropriation 23.19is not available until the commissioner of 23.20finance determines that $200,000 has been 23.21committed to the project from other sources; 23.22and23.23(3) $150,000 for a grant to the Lower 23.24Minnesota Watershed District to acquire land 23.25for and to design and construct improvements 23.26for dredge material site projects located 23.27within the district.

23.28Sec. 5. METROPOLITAN COUNCIL

23.29Subdivision 1.Total Appropriation$23,700,000

23.30To the Metropolitan Council for the purposes 23.31specified in this section.23.32The commissioner must record in a central 23.33location each project, funded in whole or 23.34in part with funds from this appropriation, 23.35that is expected to have carbon sequestration 24.1value in anticipation of guidelines written by 24.2an interagency committee in conjunction with 24.3the University of Minnesota for assessing 24.4changes in carbon budgets resulting from 24.5bonded restoration projects, including 24.6identification of relevant carbon pools, time 24.7frames, and measurement protocols.

24.824.9Subd. 2.Metropolitan Regional Parks Capital Improvements10,500,000

24.10For the cost of improvements and betterments 24.11of a capital nature and acquisition by the 24.12council and local government units of 24.13regional recreational open-space lands in 24.14accordance with the council's policy plan 24.15as provided in Minnesota Statutes, section 24.16473.147. Priority must be given to park 24.17rehabilitation and land acquisition projects. 24.18These funds shall not be used for the 24.19purchase of easements.

24.20Subd. 3.St. Paul National Great River Park6,000,000

24.21For a grant to the city of St. Paul to acquire 24.22land for and to predesign, design, construct, 24.23furnish, and equip river park development 24.24and redevelopment infrastructure in National 24.25Great River Park along the Mississippi River 24.26in St. Paul. This appropriation is for the 24.27first phase and future bond funds must be 24.28matched.

24.2924.30Subd. 4.St. Paul National Great River Park Upper Landing3,800,000

24.31For a grant to the city of St. Paul to acquire 24.32land for and to predesign, design, construct, 24.33furnish, and equip river park development 24.34and redevelopment infrastructure for the 25.1National Great River Park in St. Paul, 25.2including the Bruce Vento Nature Sanctuary.

25.3Subd. 5.Springbrook Nature Center2,500,000

25.4For a grant to the city of Fridley to predesign, 25.5design, construct, furnish, and equip 25.6the redevelopment and expansion of the 25.7Springbrook Nature Center. No nonstate 25.8match is required.

25.9Subd. 6.South St. Paul Span Arch Bridge500,000

25.10For a grant to the city of South St. Paul to 25.11design and construct a span arch bridge under 25.1219th Avenue to connect with the Dakota 25.13County North Urban Regional Trail.

25.14Subd. 7.Father Hennepin Regional Park400,000

25.15For a grant to the Minneapolis Park and 25.16Recreation Board for repair, restoration, and 25.17rehabilitation of trails, picnic areas, lighting, 25.18signage, and stairs and for bluff and slope 25.19stabilization at Father Hennepin Regional 25.20Park.25.21    Sec. 6. Minnesota Statutes 2007 Supplement, section 103G.222, subdivision 1, is 25.22amended to read:25.23    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly 25.24or partially, unless replaced by restoring or creating wetland areas of at least equal 25.25public value under a replacement plan approved as provided in section 
         103G.2242, a 25.26replacement plan under a local governmental unit's comprehensive wetland protection 25.27and management plan approved by the board under section 
         103G.2243, or, if a permit to 25.28mine is required under section 
         93.481, under a mining reclamation plan approved by the 25.29commissioner under the permit to mine. Mining reclamation plans shall apply the same 25.30principles and standards for replacing wetlands by restoration or creation of wetland areas 25.31that are applicable to mitigation plans approved as provided in section 
         103G.2242. Public 25.32value must be determined in accordance with section 
         103B.3355 or a comprehensive 25.33wetland protection and management plan established under section 
         103G.2243. Sections 26.1103G.221
          to 
         103G.2372 also apply to excavation in permanently and semipermanently 26.2flooded areas of types 3, 4, and 5 wetlands. 26.3    (b) Replacement must be guided by the following principles in descending order 26.4of priority:26.5    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish 26.6the wetland;26.7    (2) minimizing the impact by limiting the degree or magnitude of the wetland 26.8activity and its implementation;26.9    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected 26.10wetland environment;26.11    (4) reducing or eliminating the impact over time by preservation and maintenance 26.12operations during the life of the activity;26.13    (5) compensating for the impact by restoring a wetland; and26.14    (6) compensating for the impact by replacing or providing substitute wetland 26.15resources or environments.26.16    For a project involving the draining or filling of wetlands in an amount not exceeding 26.1710,000 square feet more than the applicable amount in section 
         103G.2241, subdivision 9, 26.18paragraph (a), the local government unit may make an on-site sequencing determination 26.19without a written alternatives analysis from the applicant. 26.20    (c) If a wetland is located in a cultivated field, then replacement must be 26.21accomplished through restoration only without regard to the priority order in paragraph 26.22(b), provided that a deed restriction is placed on the altered wetland prohibiting 26.23nonagricultural use for at least ten years.26.24    (d) If a wetland is drained under section 
         103G.2241, subdivision 2, paragraphs 26.25(b) and (e), the local government unit may require a deed restriction that prohibits 26.26nonagricultural use for at least ten years unless the drained wetland is replaced as provided 26.27under this section. The local government unit may require the deed restriction if it 26.28determines the wetland area drained is at risk of conversion to a nonagricultural use within 26.29ten years based on the zoning classification, proximity to a municipality or full service 26.30road, or other criteria as determined by the local government unit.26.31    (e) Restoration and replacement of wetlands must be accomplished in accordance 26.32with the ecology of the landscape area affected and ponds that are created primarily to 26.33fulfill stormwater management, and water quality treatment requirements may not be 26.34used to satisfy replacement requirements under this chapter unless the design includes 26.35pretreatment of runoff and the pond is functioning as a wetland.27.1    (f) Except as provided in paragraph (g), for a wetland or public waters wetland 27.2located on nonagricultural land, replacement must be in the ratio of two acres of replaced 27.3wetland for each acre of drained or filled wetland.27.4    (g) For a wetland or public waters wetland located on agricultural land or in a greater 27.5than 80 percent area, replacement must be in the ratio of one acre of replaced wetland 27.6for each acre of drained or filled wetland.27.7    (h) Wetlands that are restored or created as a result of an approved replacement plan 27.8are subject to the provisions of this section for any subsequent drainage or filling.27.9    (i) Except in a greater than 80 percent area, only wetlands that have been restored 27.10from previously drained or filled wetlands, wetlands created by excavation in nonwetlands, 27.11wetlands created by dikes or dams along public or private drainage ditches, or wetlands 27.12created by dikes or dams associated with the restoration of previously drained or filled 27.13wetlands may be used in a statewide banking program established in rules adopted under 27.14section 
         103G.2242, subdivision 1. Modification or conversion of nondegraded naturally 27.15occurring wetlands from one type to another are not eligible for enrollment in a statewide 27.16wetlands bank. 27.17    (j) The Technical Evaluation Panel established under section 
         103G.2242, subdivision 27.182
         , shall ensure that sufficient time has occurred for the wetland to develop wetland 27.19characteristics of soils, vegetation, and hydrology before recommending that the wetland 27.20be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason 27.21to believe that the wetland characteristics may change substantially, the panel shall 27.22postpone its recommendation until the wetland has stabilized. 27.23    (k) This section and sections 
         103G.223 to 
         103G.2242, 
         103G.2364, and 
         103G.236527.24apply to the state and its departments and agencies. 27.25    (l) For projects involving draining or filling of wetlands associated with a new public 27.26transportation road project, and for public road projects expanded solely for additional 27.27traffic capacity, public transportation road authorities may purchase credits from the board 27.28at the cost to the board to establish credits. Proceeds from the sale of credits provided 27.29under this paragraph are appropriated to the board for the purposes of this paragraph.27.30For purposes of this paragraph, public road authorities include: the state of Minnesota, 27.31counties, cities, and townships.27.32    (m) A replacement plan for wetlands is not required for individual projects that 27.33result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, 27.34or replacement of a currently serviceable existing state, city, county, or town public road 27.35necessary, as determined by the public transportation authority, to meet state or federal 27.36design or safety standards or requirements, excluding new roads or roads expanded solely 28.1for additional traffic capacity lanes. This paragraph only applies to authorities for public 28.2transportation projects that:28.3    (1) minimize the amount of wetland filling or draining associated with the project 28.4and consider mitigating important site-specific wetland functions on-site;28.5    (2) except as provided in clause (3), submit project-specific reports to the board, the 28.6Technical Evaluation Panel, the commissioner of natural resources, and members of the 28.7public requesting a copy at least 30 days prior to construction that indicate the location, 28.8amount, and type of wetlands to be filled or drained by the project or, alternatively, 28.9convene an annual meeting of the parties required to receive notice to review projects to 28.10be commenced during the upcoming year; and28.11    (3) for minor and emergency maintenance work impacting less than 10,000 square 28.12feet, submit project-specific reports, within 30 days of commencing the activity, to the 28.13board that indicate the location, amount, and type of wetlands that have been filled 28.14or drained.28.15    Those required to receive notice of public transportation projects may appeal 28.16minimization, delineation, and on-site mitigation decisions made by the public 28.17transportation authority to the board according to the provisions of section 
         103G.2242, 28.18subdivision 9
         . The Technical Evaluation Panel shall review minimization and delineation 28.19decisions made by the public transportation authority and provide recommendations 28.20regarding on-site mitigation if requested to do so by the local government unit, a 28.21contiguous landowner, or a member of the Technical Evaluation Panel. 28.22    Except for state public transportation projects, for which the state Department of 28.23Transportation is responsible, the board must replace the wetlands, and wetland areas of 28.24public waters if authorized by the commissioner or a delegated authority, drained or filled 28.25by public transportation projects on existing roads.28.26    Public transportation authorities at their discretion may deviate from federal and 28.27state design standards on existing road projects when practical and reasonable to avoid 28.28wetland filling or draining, provided that public safety is not unreasonably compromised. 28.29The local road authority and its officers and employees are exempt from liability for 28.30any tort claim for injury to persons or property arising from travel on the highway and 28.31related to the deviation from the design standards for construction or reconstruction under 28.32this paragraph. This paragraph does not preclude an action for damages arising from 28.33negligence in construction or maintenance on a highway.28.34    (n) If a landowner seeks approval of a replacement plan after the proposed project 28.35has already affected the wetland, the local government unit may require the landowner to 29.1replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise 29.2required.29.3    (o) A local government unit may request the board to reclassify a county or 29.4watershed on the basis of its percentage of presettlement wetlands remaining. After 29.5receipt of satisfactory documentation from the local government, the board shall change 29.6the classification of a county or watershed. If requested by the local government unit, 29.7the board must assist in developing the documentation. Within 30 days of its action to 29.8approve a change of wetland classifications, the board shall publish a notice of the change 29.9in the Environmental Quality Board Monitor.29.10    (p) One hundred citizens who reside within the jurisdiction of the local government 29.11unit may request the local government unit to reclassify a county or watershed on the basis 29.12of its percentage of presettlement wetlands remaining. In support of their petition, the 29.13citizens shall provide satisfactory documentation to the local government unit. The local 29.14government unit shall consider the petition and forward the request to the board under 29.15paragraph (o) or provide a reason why the petition is denied.29.16    Sec. 7. Minnesota Statutes 2006, section 103G.271, subdivision 6, is amended to read:29.17    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs 29.18(b) to (f), a water use permit processing fee must be prescribed by the commissioner in 29.19accordance with the schedule of fees in this subdivision for each water use permit in force 29.20at any time during the year. The schedule is as follows, with the stated fee in each clause 29.21applied to the total amount appropriated:29.22    (1) $101 for amounts not exceeding 50,000,000 gallons per year;29.23    (2) $3 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less 29.24than 100,000,000 gallons per year;29.25    (3) $3.50 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but 29.26less than 150,000,000 gallons per year;29.27    (4) $4 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but less 29.28than 200,000,000 gallons per year;29.29    (5) $4.50 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but 29.30less than 250,000,000 gallons per year;29.31    (6) $5 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but less 29.32than 300,000,000 gallons per year;29.33    (7) $5.50 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but 29.34less than 350,000,000 gallons per year;30.1    (8) $6 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but less 30.2than 400,000,000 gallons per year;30.3    (9) $6.50 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but 30.4less than 450,000,000 gallons per year;30.5    (10) $7 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 30.6less than 500,000,000 gallons per year; and30.7    (11) $7.50 per 1,000,000 gallons for amounts greater than 500,000,000 gallons 30.8per year.30.9    (b) For once-through cooling systems, a water use processing fee must be prescribed 30.10by the commissioner in accordance with the following schedule of fees for each water use 30.11permit in force at any time during the year:30.12    (1) for nonprofit corporations and school districts, $150 per 1,000,000 gallons; and30.13    (2) for all other users, $300 per 1,000,000 gallons.30.14    (c) The fee is payable based on the amount of water appropriated during the year 30.15and, except as provided in paragraph (f), the minimum fee is $100.30.16    (d) For water use processing fees other than once-through cooling systems:30.17    (1) the fee for a city of the first class may not exceed $250,000 per year;30.18    (2) the fee for other entities for any permitted use may not exceed:30.19    (i) $50,000 per year for an entity holding three or fewer permits;30.20    (ii) $75,000 per year for an entity holding four or five permits;30.21    (iii) $250,000 per year for an entity holding more than five permits;30.22    (3) the fee for agricultural irrigation may not exceed $750 per year;30.23    (4) the fee for a municipality that furnishes electric service and cogenerates steam 30.24for home heating may not exceed $10,000 for its permit for water use related to the 30.25cogeneration of electricity and steam; and30.26    (5) no fee is required for a project involving the appropriation of surface water to 30.27prevent flood damage or to remove flood waters during a period of flooding, as determined 30.28by the commissioner.30.29    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two 30.30percent per month calculated from the original due date must be imposed on the unpaid 30.31balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 30.32may not be imposed on an agency, as defined in section 
         16B.01, subdivision 2, or federal 30.33governmental agency holding a water appropriation permit.30.34    (f) The minimum water use processing fee for a permit issued for irrigation of 30.35agricultural land is $20 for years in which:30.36    (1) there is no appropriation of water under the permit; or31.1    (2) the permit is suspended for more than seven consecutive days between May 1 31.2and October 1.31.3    (g) A surcharge of $20 per million gallons in addition to the fee prescribed in 31.4paragraph (a) shall be applied to the volume of water used in each of the months of June, 31.5July, and August that exceeds the volume of water used in January for municipal water 31.6use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 31.7with more than one permit shall be determined based on the total appropriations from all 31.8permits that supply a common distribution system.31.9    (h) A water monitoring charge of .0002 cents per gallon shall be applied to 31.10the volume of groundwater used in the counties of Anoka, Carver, Chisago, Dakota, 31.11Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright. The revenue 31.12collected under this paragraph must be credited to an account in the natural resources 31.13fund and is available for appropriation to be used for installation and rehabilitation 31.14of groundwater level monitoring equipment in new or existing wells. The intent of the 31.15monitoring wells is to collect long-term water level data and to manage and interpret the 31.16data in order to determine potential depletion rates and sustainable water withdrawal rates 31.17for aquifers in the state.31.18    Sec. 8. [116.195] BENEFICIAL USE OF WASTEWATER; CAPITAL GRANTS 31.19FOR DEMONSTRATION PROJECTS.31.20    Subdivision 1.Definitions.(a) For the purposes of this section, the following terms 31.21have the meanings given them.31.22    (b) "Agency" means the Pollution Control Agency.31.23    (c) "Beneficial use of wastewater" means use of the effluent from a wastewater 31.24treatment plant that replaces use of groundwater.31.25    (d) "Capital project" means the acquisition or betterment of public land, buildings, 31.26and other public improvements of a capital nature for the treatment of wastewater intended 31.27for beneficial use. Capital project includes projects to retrofit, expand, or construct new 31.28treatment facilities.31.29    Subd. 2.Grants for capital project design.The agency shall make grant awards 31.30to political subdivisions for up to 50 percent of the costs to predesign and design capital 31.31projects that demonstrate the beneficial use of wastewater. The maximum amount for a 31.32grant under this subdivision is $500,000. The grant agreement must provide that the 31.33predesign and design work being funded is public information and available to anyone 31.34without charge. The agency must make the predesign and design work available on its 31.35Web site.32.1    Subd. 3.Grants for capital project implementation.The agency shall make 32.2grant awards to political subdivisions for up to 50 percent of the costs to acquire, 32.3construct, install, furnish, and equip capital projects that demonstrate the beneficial use 32.4of wastewater. The political subdivision must submit design plans and specifications 32.5to the agency as part of the application.32.6    The agency must consult with the Public Facilities Authority and the commissioner 32.7of natural resources in reviewing and ranking applications for grants under this section.32.8    The application must identify the uses of the treated wastewater and greater weight 32.9will be given to applications that include a binding commitment to participate by the 32.10user or users.32.11    The agency must give preference to projects that will reduce use of the greatest 32.12volume of groundwater from aquifers with the slowest rate of recharge.32.13    Subd. 4.Application form; procedures.The agency shall develop an application 32.14form and procedures.32.15    Subd. 5.Reports.The agency shall report by February 1 of each year to the chairs 32.16of the house and senate committees with jurisdiction over environment policy and finance 32.17and capital investment on the grants made and projects funded under this section. For each 32.18demonstration project funded, the report must include information on the scale of water 32.19constraints for the area, the volume of treated wastewater supply, the quality of treated 32.20wastewater supplied and treatment implications for the industrial user, impacts to stream 32.21flow and downstream users, and any considerations related to water appropriation and 32.22discharge permits.32.23    Sec. 9. BOND SALE AUTHORIZATION.32.24    To provide the money appropriated in this act from the bond proceeds fund, the 32.25commissioner of finance shall sell and issue bonds of the state in an amount up to 32.26$240,937,000 in the manner, upon the terms, and with the effect prescribed by Minnesota 32.27Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, 32.28sections 4 to 7.32.29    Sec. 10. EFFECTIVE DATE.32.30    Except as otherwise provided, this act is effective the day following final enactment.