1.1A bill for an act1.2relating to water; establishing a metropolitan area groundwater monitoring 1.3account and fee; appropriating money;amending Minnesota Statutes 2009 1.4Supplement, section 103G.271, subdivision 6; Laws 2009, chapter 172, article 2, 1.5section 4; proposing coding for new law in Minnesota Statutes, chapter 103G.1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7Section 1. CLEAN WATER FUND APPROPRIATIONS.

1.8    The sums shown in the columns marked "Appropriations" are appropriated to the 1.9agencies and for the purposes specified in this act. The appropriations are from the clean 1.10water fund, or another named fund, and are available for the fiscal years indicated for each 1.11purpose. The figures "2010" and "2011" used in this act mean that the appropriations 1.12listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, 1.13respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011. 1.14"The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal year ending 1.15June 30, 2010, are effective the day following final enactment. All appropriations in 1.16this act are onetime only.

1.17APPROPRIATIONS1.18Available for the Year1.19Ending June 301.2020102011

1.21Sec. 2. POLLUTION CONTROL AGENCY$-0-$310,000

1.22$310,000 the second year is for continued 1.23rulemaking to establish water quality 2.1standards for total nitrogen and nitrate 2.2nitrogen.

2.32.4Sec. 3. DEPARTMENT OF NATURAL RESOURCES$-0-$5,000,000

2.5$5,000,000 the second year shall be 2.6transferred to the metropolitan area 2.7groundwater monitoring account established 2.8under Minnesota Statutes, section 103G.272, 2.9to be used by the commissioner of natural 2.10resources for the following purposes:2.11(1) establish a groundwater monitoring 2.12network in the 11-county metropolitan area 2.13that monitors nonstressed systems to provide 2.14information on aquifer characteristics and 2.15natural water level and water quality trends; 2.16and2.17(2) develop an automated data system, 2.18including existing wells, to capture 2.19groundwater level and water use data to 2.20enhance the evaluation of water resource 2.21changes in aquifer systems that are stressed 2.22by pumping of existing wells.2.23The commissioner shall collaborate with the 2.24commissioners of health and the Pollution 2.25Control Agency in designing the methods 2.26used to collect and evaluate the data.

2.272.28Sec. 4. BOARD OF WATER AND SOIL RESOURCES$-0-$1,615,000

2.29(a) $558,000 the second year is to purchase 2.30and restore permanent conservation 2.31easements on riparian buffers of up to 120 2.32feet adjacent to public waters, excluding 2.33wetlands, to keep water on the land in 2.34order to decrease sediment, pollutant, and 3.1nutrient transport, reduce hydrologic impacts 3.2to surface waters, and increase infiltration 3.3for groundwater recharge. The riparian 3.4buffers must be at least 50 feet unless 3.5there is a natural impediment, a road, or 3.6other impediment beyond the control of 3.7the landowner. This appropriation may 3.8be used for restoration of riparian buffers 3.9protected by easements purchased with 3.10this appropriation and for stream bank 3.11restorations when the riparian buffers have 3.12been restored. Up to five percent may be 3.13used for administration of this program and 3.14up to five percent may be used for technical 3.15design, construction, and project oversight.3.16(b) $557,000 the second year is for grants 3.17to watershed districts and watershed 3.18management organizations for: (1) structural 3.19or vegetative management practices that 3.20reduce storm water runoff from developed 3.21or disturbed lands to reduce the movement 3.22of sediment, nutrients, and pollutants or 3.23to leverage federal funds for restoration, 3.24protection, or enhancement of water quality 3.25in lakes, rivers, and streams and to protect 3.26groundwater and drinking water; and (2) 3.27the installation of proven and effective 3.28water retention practices including, but not 3.29limited to, rain gardens and other vegetated 3.30infiltration basins and sediment control 3.31basins in order to keep water on the land. 3.32The projects must be of long-lasting public 3.33benefit, include a local match, and be 3.34consistent with TMDL implementation plans 3.35or local water management plans. Watershed 3.36district and watershed management 4.1organization staff and administration may 4.2be used for the local match. Priority may be 4.3given to school projects that can be used to 4.4demonstrate water retention practices. Up to 4.5five percent may be used for administering 4.6the grants and up to five percent may be 4.7used for technical design, construction, and 4.8project oversight.4.9(c) $500,000 the second year is for 4.10permanent conservation easements on 4.11wellhead protection areas under Minnesota 4.12Statutes, section 103F.515, subdivision 2, 4.13paragraph (d). Priority must be placed on 4.14land that is located where the vulnerability 4.15of the drinking water supply management 4.16area, as defined under Minnesota Rules, 4.17part 4720.5100, subpart 13, is designated as 4.18high or very high by the commissioner of 4.19health. Up to five percent may be used for 4.20administration of this program and up to five 4.21percent may be used for technical design, 4.22construction, and project oversight.4.23(d) The Star Lake Board, established under 4.24Minnesota Statutes, section 103B.702, shall 4.25provide recommendations to the Board of 4.26Water and Soil Resources on a set of criteria 4.27that could be used to designate a lake or river 4.28as a "Minnesota Star Lake" or "Minnesota 4.29Star River."4.30    Sec. 5. Minnesota Statutes 2009 Supplement, section 103G.271, subdivision 6, is 4.31amended to read:4.32    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs 4.33(b) to (f), a water use permit processing fee must be prescribed by the commissioner in 4.34accordance with the schedule of fees in this subdivision for each water use permit in force 5.1at any time during the year. The schedule is as follows, with the stated fee in each clause 5.2applied to the total amount appropriated:5.3    (1) $140 for amounts not exceeding 50,000,000 gallons per year;5.4    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less 5.5than 100,000,000 gallons per year;5.6    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less 5.7than 150,000,000 gallons per year;5.8    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but 5.9less than 200,000,000 gallons per year;5.10    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less 5.11than 250,000,000 gallons per year;5.12    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but 5.13less than 300,000,000 gallons per year;5.14    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less 5.15than 350,000,000 gallons per year;5.16    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but 5.17less than 400,000,000 gallons per year;5.18    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less 5.19than 450,000,000 gallons per year;5.20    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 5.21less than 500,000,000 gallons per year; and5.22    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.5.23    (b) For once-through cooling systems, a water use processing fee must be prescribed 5.24by the commissioner in accordance with the following schedule of fees for each water use 5.25permit in force at any time during the year:5.26    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and5.27    (2) for all other users, $420 per 1,000,000 gallons.5.28    (c) The fee is payable based on the amount of water appropriated during the year 5.29and, except as provided in paragraph (f), the minimum fee is $100.5.30    (d) For water use processing fees other than once-through cooling systems:5.31    (1) the fee for a city of the first class may not exceed $250,000 per year;5.32    (2) the fee for other entities for any permitted use may not exceed:5.33    (i) $60,000 per year for an entity holding three or fewer permits;5.34    (ii) $90,000 per year for an entity holding four or five permits; or5.35    (iii) $300,000 per year for an entity holding more than five permits;5.36    (3) the fee for agricultural irrigation may not exceed $750 per year;6.1    (4) the fee for a municipality that furnishes electric service and cogenerates steam 6.2for home heating may not exceed $10,000 for its permit for water use related to the 6.3cogeneration of electricity and steam; and6.4    (5) no fee is required for a project involving the appropriation of surface water to 6.5prevent flood damage or to remove flood waters during a period of flooding, as determined 6.6by the commissioner.6.7    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two 6.8percent per month calculated from the original due date must be imposed on the unpaid 6.9balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 6.10may not be imposed on an agency, as defined in section 
         16B.01, subdivision 2, or federal 6.11governmental agency holding a water appropriation permit.6.12    (f) The minimum water use processing fee for a permit issued for irrigation of 6.13agricultural land is $20 for years in which:6.14    (1) there is no appropriation of water under the permit; or6.15    (2) the permit is suspended for more than seven consecutive days between May 1 6.16and October 1.6.17    (g) A surcharge of $30 per million gallons in addition to the fee prescribed in 6.18paragraph (a) shall be applied to the volume of water used in each of the months of June, 6.19July, and August that exceeds the volume of water used in January for municipal water 6.20use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 6.21with more than one permit shall be determined based on the total appropriations from all 6.22permits that supply a common distribution system.6.23(h) Beginning January 1, 2010, until June 30, 2015, a water monitoring fee of .0008 6.24cents per gallon shall be applied to the volume of groundwater used in the counties 6.25of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 6.26Washington, and Wright. Beginning July 1, 2015, and thereafter, the fee shall be .0006 6.27cents per gallon. Fees collected under this paragraph must be credited to the metropolitan 6.28area groundwater monitoring account established in section 103G.272.6.29    Sec. 6. [103G.272] METROPOLITAN AREA GROUNDWATER MONITORING 6.30ACCOUNT.6.31A metropolitan area groundwater monitoring account is created in the natural 6.32resources fund. Money in the account is appropriated to the commissioner of natural 6.33resources to provide for monitoring the groundwater quantity and quality of nonstressed 6.34systems in the 11-county metropolitan area, to include the installation, maintenance, and 6.35sealing of new or existing groundwater level monitoring wells, monitoring equipment, 7.1groundwater data analysis, and data management systems. Money received from the water 7.2monitoring fee under section 103G.271, subdivision 6, paragraph (h), and interest earned 7.3on the account shall be deposited into the account.7.4    Sec. 7. Laws 2009, chapter 172, article 2, section 4, is amended to read:

7.57.6Sec. 4. POLLUTION CONTROL AGENCY$24,076,000$27,285,00022,785,000

7.7(a) $9,000,000 the first year and $9,000,000 7.8the second year are to develop total 7.9maximum daily load (TMDL) studies and 7.10TMDL implementation plans for waters 7.11listed on the United States Environmental 7.12Protection Agency approved impaired 7.13waters list in accordance with Minnesota 7.14Statutes, chapter 114D. The agency shall 7.15complete an average of ten percent of the 7.16TMDLs each year over the biennium. Of 7.17this amount, $348,000 the first year is to 7.18retest the comprehensive assessment of the 7.19biological conditions of the lower Minnesota 7.20River and its tributaries within the Lower 7.21Minnesota River Major Watershed, as 7.22previously assessed from 1976 to 1992 under 7.23the Minnesota River Assessment Project 7.24(MRAP). The assessment must include the 7.25same fish species sampling at the same 116 7.26locations and the same macroinvertebrate 7.27sampling at the same 41 locations as the 7.28MRAP assessment. The assessment must:7.29(1) include an analysis of the findings; and7.30(2) identify factors that limit aquatic life in 7.31the Minnesota River.7.32Of this amount, $250,000 the first year is 7.33for a pilot project for the development of 7.34total maximum daily load (TMDL) studies 8.1conducted on a watershed basis within 8.2the Buffalo River watershed in order to 8.3protect, enhance, and restore water quality 8.4in lakes, rivers, and streams. The pilot 8.5project shall include all necessary field 8.6work to develop TMDL studies for all 8.7impaired subwatersheds within the Buffalo 8.8River watershed and provide information 8.9necessary to complete reports for most of the 8.10remaining watersheds, including analysis of 8.11water quality data, identification of sources 8.12of water quality degradation and stressors, 8.13load allocation development, development 8.14of reports that provide protection plans 8.15for subwatersheds that meet water quality 8.16standards, and development of reports that 8.17provide information necessary to complete 8.18TMDL studies for subwatersheds that do not 8.19meet water quality standards, but are not 8.20listed as impaired.8.21(b) $500,000 the first year is for development 8.22of an enhanced TMDL database to manage 8.23and track progress. Of this amount, $63,000 8.24the first year is to promulgate rules. By 8.25November 1, 2010, the commissioner shall 8.26submit a report to the chairs of the house of 8.27representatives and senate committees with 8.28jurisdiction over environment and natural 8.29resources finance on the outcomes achieved 8.30with this appropriation.8.31(c) $1,500,000 the first year and $3,169,000 8.32the second year are for grants under 8.33Minnesota Statutes, section 
         116.195, to 8.34political subdivisions for up to 50 percent 8.35of the costs to predesign, design, and 8.36implement capital projects that use treated 9.1municipal wastewater instead of groundwater 9.2from drinking water aquifers, in order to 9.3demonstrate the beneficial use of wastewater, 9.4including the conservation and protection of 9.5water resources. Of this amount, $1,000,000 9.6the first year is for grants to ethanol plants 9.7that are within one and one-half miles of a 9.8city for improvements that reuse greater than 9.9300,000 gallons of wastewater per day.9.10(d) $1,125,000 the first year and $1,125,000 9.11the second year are for groundwater 9.12assessment and drinking water protection to 9.13include:9.14(1) the installation and sampling of at least 9.1530 new monitoring wells;9.16(2) the analysis of samples from at least 40 9.17shallow monitoring wells each year for the 9.18presence of endocrine disrupting compounds; 9.19and9.20(3) the completion of at least four to 9.21five groundwater models for TMDL and 9.22watershed plans.9.23(e) $2,500,000 the first year is for the clean 9.24water partnership program. Priority shall be 9.25given to projects preventing impairments and 9.26degradation of lakes, rivers, streams, and 9.27groundwater in accordance with Minnesota 9.28Statutes, section 
         114D.20, subdivision 2, 9.29clause (4). Any balance remaining in the first 9.30year does not cancel and is available for the 9.31second year.9.32(f) $896,000 the first year is to establish 9.33a network of water monitoring sites, to 9.34include at least 20 additional sites, in public 9.35waters adjacent to wastewater treatment 10.1facilities across the state to assess levels of 10.2endocrine-disrupting compounds, antibiotic 10.3compounds, and pharmaceuticals as required 10.4in this article. The data must be placed on 10.5the agency's Web site.10.6(g) $155,000 the first year is to provide 10.7notification of the potential for coal tar 10.8contamination, establish a storm water 10.9pond inventory schedule, and develop best 10.10management practices for treating and 10.11cleaning up contaminated sediments as 10.12required in this article. $345,000 $645,00010.13the second year is to develop a model 10.14ordinance for the restricted use of undiluted 10.15coal tar sealants and to provide grants to local 10.16units of government for up to 50 percent of 10.17the costs to implement best management 10.18practices to treat or clean up contaminated 10.19sediments in storm water ponds and other 10.20waters as defined under this article. Local 10.21governments must have adopted an ordinance 10.22for the restricted use of undiluted coal tar 10.23sealants in order to be eligible for a grant, 10.24unless a statewide restriction has been 10.25implemented. A grant awarded under this 10.26paragraph must not exceed $100,000. Up to 10.27$145,000 of the appropriation in the second 10.28year may be used to complete work required 10.29under section 28, paragraph (c).10.30(h) $350,000 the first year and $400,00010.31$600,000 the second year are for a restoration 10.32project in the lower St. Louis River and 10.33Duluth harbor in order to improve water 10.34quality. This appropriation must be matched 10.35by nonstate money at a rate of at least $2 for 10.36every $1 of state money.11.1(i) $150,000 the first year and $196,000 the 11.2second year are for grants to the Red River 11.3Watershed Management Board to enhance 11.4and expand existing river watch activities in 11.5the Red River of the North. The Red River 11.6Watershed Management Board shall provide 11.7a report that includes formal evaluation 11.8results from the river watch program to the 11.9commissioners of education and the Pollution 11.10Control Agency and to the legislative natural 11.11resources finance and policy committees 11.12and K-12 finance and policy committees by 11.13February 15, 2011.11.14(j) $200,000 the first year and $300,000 the 11.15second year are for coordination with the 11.16state of Wisconsin and the National Park 11.17Service on comprehensive water monitoring 11.18and phosphorus reduction activities in the 11.19Lake St. Croix portion of the St. Croix 11.20River. The Pollution Control Agency 11.21shall work with the St. Croix Basin Water 11.22Resources Planning Team and the St. Croix 11.23River Association in implementing the 11.24water monitoring and phosphorus reduction 11.25activities. This appropriation is available 11.26to the extent matched by nonstate sources. 11.27Money not matched by November 15, 2010, 11.28cancels for this purpose and is available for 11.29the purposes of paragraph (a).11.30(k) $7,500,000 the first year and $7,500,000 11.31the second year are for completion of 20 11.32percent of the needed statewide assessments 11.33of surface water quality and trends. Of this 11.34amount, $175,000 the first year and $200,000 11.35the second year are for monitoring and 12.1analyzing endocrine disruptors in surface 12.2waters.12.3(l) $100,000 the first year and $150,000 12.4the second year are for civic engagement 12.5in TMDL development. The agency shall 12.6develop a plan for expenditures under 12.7this paragraph. The agency shall give 12.8consideration to civic engagement proposals 12.9from basin or sub-basin organizations, 12.10including the Mississippi Headwaters Board, 12.11the Minnesota River Joint Powers Board, 12.12Area II Minnesota River Basin Projects, 12.13and the Red River Basin Commission. 12.14By November 15, 2009, the plan shall be 12.15submitted to the house and senate chairs 12.16and ranking minority members of the 12.17environmental finance divisions.12.18(m) $5,000,000 the second year is for 12.19groundwater protection or prevention of 12.20groundwater degradation activities. By 12.21January 15, 2010, the commissioner, in 12.22consultation with the commissioner of 12.23natural resources, the Board of Water and 12.24Soil Resources, and other agencies, shall 12.25submit a report to the chairs of the house of 12.26representatives and senate committees with 12.27jurisdiction over the clean water fund on the 12.28intended use of these funds. The legislature 12.29must approve expenditure of these funds by 12.30law.12.31(n) $100,000 the first year and $100,000 the 12.32second year are for grants to the Star Lake 12.33Board established under Minnesota Statutes, 12.34section 103B.702. The appropriation is a 12.35pilot program to focus on engaging citizen 13.1participation and fostering local partnerships 13.2by increasing citizen involvement in water 13.3quality enhancement by designating star 13.4lakes and rivers. The board shall include 13.5information on the results of this pilot 13.6program in its next biennial report under 13.7Minnesota Statutes, section 103B.702. The 13.8second year grants are available only if 13.9the Board of Water and Soil Resources 13.10determines that the money granted in the first 13.11year furthered the water quality goals in the 13.12star lakes program in Minnesota Statutes, 13.13section 103B.701. * (The preceding 13.14paragraph beginning "(n) $100,000 the 13.15first year" was indicated as vetoed by the 13.16governor.)13.17Notwithstanding Minnesota Statutes, section 13.1816A.28
         , the appropriations encumbered on or 13.19before June 30, 2011, as grants or contracts in 13.20this section are available until June 30, 2013.