<a id="pl.1.3"></a><var>1.3</var>Minnesota Statutes 2008, section 17.117, subdivision 11a.<br/>
<a id="pl.1.4"></a><var>1.4</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.5"></a><var>1.5</var>    Section 1. Minnesota Statutes 2008, section 17.117, subdivision 11a, is amended to <br/>
<a id="pl.1.6"></a><var>1.6</var>read:<br/>
<a id="pl.1.7"></a><var>1.7</var>    Subd. 11a. <b>Eligible projects.</b> All projects that remediate or mitigate adverse <br/>
<a id="pl.1.8"></a><var>1.8</var>environmental impacts are eligible if:<br/>
<a id="pl.1.9"></a><var>1.9</var>(1) the project is eligible under the allocation agreement and funding sources <br/>
<a id="pl.1.10"></a><var>1.10</var>designated by the local government unit to finance the project; and<br/>
<a id="pl.1.11"></a><var>1.11</var>(2) manure management projects remediate or mitigate impacts from facilities with <br/>
<a id="pl.1.12"></a><var>1.12</var>less than 1,000 animal units as defined in Minnesota Rules, chapter 7020.<br/>
<a id="pl.1.13"></a><var>1.13</var>The purchase of variable rate fertilizer application machinery or equipment is an <br/>
<a id="pl.1.14"></a><var>1.14</var>eligible project if the machinery or equipment is capable of precision-applying three <br/>
<a id="pl.1.15"></a><var>1.15</var>or more products simultaneously and the person commits to using the machinery or <br/>
<a id="pl.1.16"></a><var>1.16</var>equipment in this state for at least five years. The maximum loan amount for this purpose <br/>
<a id="pl.1.17"></a><var>1.17</var>is $100,000.<br/>
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<a id="bill.0.2.0"></a><a id="pl.1.18"></a><var>1.18</var>    Sec. 2. <b>DEPARTMENT OF AGRICULTURE.</b><br/>
<a id="pl.1.19"></a><var>1.19</var>$3,075,000 in fiscal year 2010 and $5,850,000 in fiscal year 2011 are appropriated <br/>
<a id="pl.1.20"></a><var>1.20</var>from the clean water fund to the commissioner of agriculture to be spent as follows:<br/>
<a id="pl.1.21"></a><var>1.21</var>(1) $325,000 the first year and $350,000 the second year are to increase monitoring <br/>
<a id="pl.1.22"></a><var>1.22</var>for pesticides and pesticide degradates in surface water and groundwater and to use data <br/>
<a id="pl.1.23"></a><var>1.23</var>collected to assess pesticide use practices.<br/>
<a id="pl.2.1"></a><var>2.1</var>(2) $375,000 the first year and $750,000 the second year are to increase drinking <br/>
<a id="pl.2.2"></a><var>2.2</var>water protection from agricultural chemicals, primarily nitrates.<br/>
<a id="pl.2.3"></a><var>2.3</var>(3) $875,000 the first year and $1,750,000 the second year are for research, pilot <br/>
<a id="pl.2.4"></a><var>2.4</var>projects, and technical assistance related to ways agricultural practices can contribute to <br/>
<a id="pl.2.5"></a><var>2.5</var>restoring impaired waters. Of this amount, $330,000 the first year and $330,000 the <br/>
<a id="pl.2.6"></a><var>2.6</var>second year may be used for technical assistance and grants to establish a conservation <br/>
<a id="pl.2.7"></a><var>2.7</var>drainage program in consultation with the Board of Water and Soil Resources and the <br/>
<a id="pl.2.8"></a><var>2.8</var>drainage workgroup that consists of pilot projects to retrofit existing drainage systems <br/>
<a id="pl.2.9"></a><var>2.9</var>with water quality improvement practices, evaluate outcomes, and provide outreach to <br/>
<a id="pl.2.10"></a><var>2.10</var>landowners, public drainage authorities, drainage engineers and contractors, and others.<br/>
<a id="pl.2.11"></a><var>2.11</var>(4) $1,000,000 the first year and $2,500,000 the second year are for the agricultural <br/>
<a id="pl.2.12"></a><var>2.12</var>best management practices loan program. At least $965,000 the first year and at least <br/>
<a id="pl.2.13"></a><var>2.13</var>$2,400,000 the second year are for transfer to the agricultural best management practices <br/>
<a id="pl.2.14"></a><var>2.14</var>loan account created pursuant to Minnesota Statutes, section 17.117, subdivision 5a, and <br/>
<a id="pl.2.15"></a><var>2.15</var>are available for pass-through to local governments and lenders for low-interest loans.<br/>
<a id="pl.2.16"></a><var>2.16</var>(5) $500,000 the first year and $500,000 the second year are for a transfer to <br/>
<a id="pl.2.17"></a><var>2.17</var>the Board of Water and Soil Resources for feedlot water quality improvement grants <br/>
<a id="pl.2.18"></a><var>2.18</var>to operations with 300 or fewer animal units and prioritized by pollution prevention <br/>
<a id="pl.2.19"></a><var>2.19</var>potential. The board shall give priority consideration to projects that leverage federal or <br/>
<a id="pl.2.20"></a><var>2.20</var>other nonstate funds or contributions and to projects that address high-priority needs <br/>
<a id="pl.2.21"></a><var>2.21</var>identified in local water management plans. These amounts are in addition to any amount <br/>
<a id="pl.2.22"></a><var>2.22</var>recommended by another committee for feedlot water quality improvement grants.<br/>