HF 334

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/11/2023 04:03pm

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.077] 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 Account established. new text end

new text begin A water treatment facility renovation account is created
in the special revenue fund. The authority must 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 must manage and administer
the account and, for these purposes, may exercise all powers provided in this chapter. The
account is 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.
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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.
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new text begin Subd. 4. new text end

new text begin Project priority lists. new text end

new text begin (a) A rural municipality seeking a loan to renovate a
wastewater treatment facility must first submit a project proposal to the commissioner of
the Pollution Control Agency on a form prescribed by the commissioner. The commissioner
must rank project proposals on the agency's project priority list used for the clean water
revolving fund under section 446A.07.
new text end

new text begin (b) A rural municipality seeking a loan to replace a water main must first submit a project
proposal to the commissioner of health on a form prescribed by the commissioner. The
commissioner must rank project proposals on the Department of Health's 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 must
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;
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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 repaying 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;
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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
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new text begin (3) a rural municipality receiving a loan must establish a dedicated source or sources of
revenue for repaying 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 The authority must make loan disbursements under this section
for eligible project costs as incurred by the recipients and 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 For the term of the loan, a rural municipality receiving a loan under
this section must annually provide to the authority a copy of the municipality's annual
independent audit or, if the municipality is not required to prepare an independent audit, a
copy of the annual reporting form the municipality provides to the state auditor.
new text end