HF 81

as introduced - 89th Legislature (2015 - 2016) Posted on 01/12/2015 02:30pm

A bill for an act
relating to environment; creating loan program to renovate rural municipal
water treatment facilities; appropriating money; proposing coding for new law
in Minnesota Statutes, chapter 446A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [446A.076] RURAL MUNICIPALITY WATER TREATMENT
FACILITY RENOVATION FUNDING.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given:
new text end

new text begin (1) "rural municipality" means a statutory or home rule charter city, town, county, or
sanitary district; an organization formed for the joint exercise of powers under section
471.59; and any other special purpose district or authority that operates a wastewater
treatment facility or water main and that is located outside of the metropolitan area as
defined in section 473.121, subdivision 2; and
new text end

new text begin (2) "wastewater treatment facility" has the meaning given under section 115.71,
subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of account. new text end

new text begin A water treatment facility renovation account
is created in the special revenue fund. The authority shall make low or no interest loans
from the account to rural municipalities as provided in this section. Money in the account
is annually appropriated to the authority and does not lapse. The authority shall manage
and administer the account and, for these purposes, may exercise all powers provided in
this chapter. The account shall be credited with:
new text end

new text begin (1) all loan repayments and interest collected under this section; and
new text end

new text begin (2) money appropriated from the clean water fund according to section 114D.50,
subdivision 3, paragraph (a), clause (3).
new text end

new text begin Subd. 3. new text end

new text begin Renovation loans; eligibility. new text end

new text begin (a) The authority may award loans as
provided in this section to rural municipalities to renovate, rehabilitate, or update
wastewater treatment facilities that pose a risk to groundwater quality or the water quality
in lakes, rivers, or streams, or to replace water mains that pose a risk to drinking water
sources. A rural municipality receiving a loan from the account is responsible, either
directly or through a contract with a private vendor, for all inspections and repairs
necessary to ensure proper operation of the wastewater treatment facility or water main.
new text end

new text begin (b) Loans may be awarded for up to 100 percent of eligible project costs minus
any funding available from other sources.
new text end

new text begin (c) The authority must award loans as provided in this section to rural municipalities
with approved applications based on their ranking on the project priority lists under
subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Project priority lists. new text end

new text begin (a) Rural municipalities seeking loans for a
wastewater treatment facility renovation must first submit a project proposal to the
Pollution Control Agency on a form prescribed by the Pollution Control Agency. The
Pollution Control Agency shall rank project proposals on its project priority list used for
the clean water revolving fund under section 446A.07.
new text end

new text begin (b) Rural municipalities seeking loans for replacing a water main must first submit a
project proposal to the Department of Health on a form prescribed by the Department of
Health. The Department of Health shall rank project proposals on its project priority list
used for the drinking water revolving fund under section 446A.081.
new text end

new text begin Subd. 5. new text end

new text begin Applications. new text end

new text begin Rural municipalities with projects on a project priority list
shall submit applications for loans under this section to the authority on forms prescribed
by the authority. An application must include:
new text end

new text begin (1) a description of the wastewater treatment facility or water main renovations to
be made;
new text end

new text begin (2) a project schedule and cost estimate for each year of the project; and
new text end

new text begin (3) a financing plan for repayment of the loan.
new text end

new text begin Subd. 6. new text end

new text begin Loan terms and conditions. new text end

new text begin Loans from the water treatment facility
renovation account must comply with the following terms and conditions:
new text end

new text begin (1) principal and interest payments must begin no later than two years after the
loan is awarded;
new text end

new text begin (2) loans must be fully amortized within 20 years but not to exceed the expected
design life of the facility or water main; and
new text end

new text begin (3) a rural municipality receiving a loan must establish a dedicated source or sources
of revenues for repayment of the loan and must issue a general obligation note to the
authority for the full amount of the loan.
new text end

new text begin Subd. 7. new text end

new text begin Disbursements. new text end

new text begin Loan disbursements by the authority under this section
must be made for eligible project costs as incurred by the recipients and must be made in
accordance with the project loan agreement and applicable state law.
new text end

new text begin Subd. 8. new text end

new text begin Audits. new text end

new text begin A rural municipality receiving a loan under this section must
annually provide to the authority for the term of the loan a copy of its annual independent
audit or, if the rural municipality is not required to prepare an independent audit, a copy of
the annual reporting form it provides to the state auditor.
new text end