1.1A bill for an act1.2relating to environment; authorizing revenue bonds to be sold for closed landfill 1.3cleanup; directing the Pollution Control Agency to provide cleanup of certain 1.4closed landfill sites; appropriating money;amending Minnesota Statutes 2006, 1.5section 116.155, subdivisions 2, 3; proposing coding for new law in Minnesota 1.6Statutes, chapter 116.1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.8    Section 1. Minnesota Statutes 2006, section 116.155, subdivision 2, is amended to read:1.9    Subd. 2. Appropriation. (a) Money in the general portion of the remediation fund 1.10is appropriated to the agency and the commissioners of agriculture and natural resources 1.11for the following purposes:1.12    (1) to take actions related to releases of hazardous substances, or pollutants or 1.13contaminants as provided in section 
         115B.20; 1.14    (2) to take actions related to releases of hazardous substances, or pollutants or 1.15contaminants, at and from qualified landfill facilities as provided in section 
         115B.42, 1.16subdivision 2
         ; 1.17    (3) to provide technical and other assistance under sections 
         115B.17, subdivision 1.1814
         , 
         115B.175 to 
         115B.179, and 
         115C.03, subdivision 9; 1.19    (4) for corrective actions to address incidents involving agricultural chemicals, 1.20including related administrative, enforcement, and cost recovery actions pursuant to 1.21chapter 18D; and1.22    (5) to make debt service payments on revenue bonds issued under section 116.156; 1.23and2.1    (6) together with any amount approved for transfer to the agency from the petroleum 2.2tank fund by the commissioner of finance, to take actions related to releases of petroleum 2.3as provided under section 
         115C.08. 2.4    (b) The commissioner of finance shall allocate the amounts available in any 2.5biennium to the agency, and the commissioners of agriculture and natural resources for the 2.6purposes provided in this subdivision based upon work plans submitted by the agency and 2.7the commissioners of agriculture and natural resources, and may adjust those allocations 2.8upon submittal of revised work plans. Copies of the work plans shall be submitted 2.9to the chairs of the senate and house committees having jurisdiction over environment 2.10and environment finance.2.11    (c) Priority for appropriations from the general portion of the remediation fund shall 2.12be given to debt service payments under paragraph (a), clause (5).2.13    Sec. 2. Minnesota Statutes 2006, section 116.155, subdivision 3, is amended to read:2.14    Subd. 3. Revenues. The following revenues shall be deposited in the general 2.15portion of the remediation fund:2.16    (1) response costs and natural resource damages related to releases of hazardous 2.17substances, or pollutants or contaminants, recovered under sections 
         115B.17, subdivisions 2.186 and 7
         , 
         115B.443, 
         115B.444, or any other law; 2.19    (2) money paid to the agency or the Agriculture Department by voluntary parties 2.20who have received technical or other assistance under sections 
         115B.17, subdivision 14, 2.21115B.175
          to 
         115B.179, and 
         115C.03, subdivision 9; 2.22    (3) money received in the form of gifts, grants, reimbursement, or appropriation from 2.23any source for any of the purposes provided in subdivision 2, except federal grants; and2.24    (4) money received from revenue bonds sold under section 116.156 and placed 2.25in a special bond proceeds account; and2.26    (5) interest accrued on the fund.2.27    Sec. 3. [116.156] CLOSED LANDFILL CLEANUP REVENUE BONDS.2.28    Subdivision 1.Bonding authority.(a) The commissioner of finance, if requested 2.29by the commissioner of the Pollution Control Agency, shall sell and issue state revenue 2.30bonds for the following purposes:2.31    (1) to take actions related to hazardous substances, pollutants, or contaminants at 2.32and from qualified landfill facilities as provided in section 115B.42, subdivision 2;2.33    (2) to pay the costs of issuance, debt service, and bond insurance or other credit 2.34enhancements and to fund reserves; and3.1    (3) to refund bonds issued under this section.3.2    (b) The amount of bonds that may be issued for the purposes of paragraph (a), 3.3clause (1), may not exceed $25,000,000. The amount of bonds that may be issued for the 3.4purposes of paragraph (a), clauses (2) and (3), is not limited.3.5    Subd. 2.Procedure.The commissioner of finance may sell and issue the bonds 3.6on the terms and conditions the commissioner of finance determines to be in the best 3.7interests of the state. The bonds may be sold at public or private sale. The commissioner 3.8of finance may enter any agreements or pledges the commissioner of finance determines 3.9necessary or useful to sell the bonds that are not inconsistent with this section. Sections 3.1016A.672 to 16A.675 apply to the bonds. The proceeds of the bonds issued under this 3.11section must be credited to a special bond proceeds account in the remediation fund and 3.12are appropriated to the commissioner of the Pollution Control Agency for the purposes 3.13specified in subdivision 1.3.14    Subd. 3.Revenue sources.The debt service on the bonds is payable only from the 3.15following sources:3.16    (1) the remediation fund; and3.17    (2) other revenues pledged to the payment of the bonds.3.18    Subd. 4.Refunding bonds.The commissioner of finance may issue bonds to refund 3.19outstanding bonds issued under subdivision 1, including the payment of any redemption 3.20premiums on the bonds and any interest accrued or to accrue to the first redemption date 3.21after delivery of the refunding bonds. The proceeds of the refunding bonds may, in the 3.22discretion of the commissioner of finance, be applied to the purchases or payment at 3.23maturity of the bonds to be refunded, or the redemption of the outstanding bonds on the 3.24first redemption date after delivery of the refunding bonds and may, until so used, be 3.25placed in escrow to be applied to the purchase, retirement, or redemption. Refunding 3.26bonds issued under this subdivision must be issued and secured in the manner provided 3.27by the commissioner of finance.3.28    Subd. 5.Not a general or moral obligation.Bonds issued under this section are 3.29not public debt, and the full faith, credit, and taxing powers of the state are not pledged 3.30for their payment. The bonds may not be paid, directly in whole or in part from a tax of 3.31statewide application on any class of property, income, transaction, or privilege. Payment 3.32of the bonds is limited to the revenues explicitly authorized to be pledged under this 3.33section. The state neither makes nor has a moral obligation to pay the bonds if the pledged 3.34revenues and other legal security for them is insufficient.4.1    Subd. 6.Trustee.The commissioner of finance may contract with and appoint a 4.2trustee for bondholders. The trustee has the powers and authority vested in it by the 4.3commissioner of finance under the bond and trust indentures.4.4    Subd. 7.Pledges.Any pledge made by the commissioner of finance is valid and 4.5binding from the time the pledge is made. The money or property pledged and later 4.6received by the commissioner of finance is immediately subject to the lien of the pledge 4.7without any physical delivery of the property or money or further act, and the lien of 4.8any pledge is valid and binding as against all parties having claims of any kind in tort, 4.9contract, or otherwise against the commissioner of finance, whether or not those parties 4.10have notice of the lien or pledge. Neither the order nor any other instrument by which a 4.11pledge is created need be recorded.4.12    Subd. 8.Bonds; purchase and cancellation.The commissioner of finance, subject 4.13to agreements with bondholders that may then exist, may, out of any money available for 4.14the purpose, purchase bonds of the commissioner of finance at a price not exceeding 4.15(1) if the bonds are then redeemable, the redemption price then applicable plus accrued 4.16interest to the next interest payment date thereon, or (2) if the bonds are not redeemable, 4.17the redemption price applicable on the first date after the purchase upon which the bonds 4.18become subject to redemption plus accrued interest to that date.4.19    Subd. 9.State pledge against impairment of contracts.The state pledges and 4.20agrees with the holders of any bonds that the state will not limit or alter the rights vested 4.21in the commissioner of finance to fulfill the terms of any agreements made with the 4.22bondholders, or in any way impair the rights and remedies of the holders until the bonds, 4.23together with interest on them, with interest on any unpaid installments of interest, and all 4.24costs and expenses in connection with any action or proceeding by or on behalf of the 4.25bondholders, are fully met and discharged. The commissioner of finance may include this 4.26pledge and agreement of the state in any agreement with the holders of bonds issued 4.27under this section.4.28    Sec. 4. USE OF REVENUE BONDS FOR CLEANUP AT CERTAIN CLOSED 4.29LANDFILL SITES; REPORT REQUIRED.4.30    (a) The commissioner of the Pollution Control Agency shall recommend to the 4.31commissioner of finance the sale of bonds under Minnesota Statutes, section 116.156, 4.32to take action at qualified closed landfill facilities in Mille Lacs, Washington County, 4.33the Western Lake Superior Sanitary District, and Albert Lea. The commissioner of the 4.34Pollution Control Agency may make additional requests for revenue bonds at other sites 4.35under Minnesota Statutes, section 116.156.5.1    (b) By January 15, 2009, the commissioner of the Pollution Control Agency shall 5.2report to the house and senate Finance Committees and Divisions with jurisdiction over 5.3the environment on funding needs of the remediation fund to provide timely cleanup 5.4of closed landfills in the state. The report shall make recommendations for additional 5.5funding sources to address those needs.