HF 4433

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/21/2022 02:32pm

A bill for an act
relating to Public Facilities Authority; requiring certain amounts of federal funds
to be spent on green infrastructure; creating a green infrastructure grant program;
appropriating money; authorizing the sale and issuance of state bonds; amending
Minnesota Statutes 2020, sections 446A.07, subdivision 8; 446A.081, subdivision
9; proposing coding for new law in Minnesota Statutes, chapter 446A.

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

Section 1.

Minnesota Statutes 2020, section 446A.07, subdivision 8, is amended to read:

Subd. 8.

Other uses of revolving fund.

(a) The clean water revolving fund may be used
as provided in title VI of the Federal Water Pollution Control Act, including the following
uses:

(1) to buy or refinance the debt obligation of governmental units for treatment works
where debt was incurred and construction begun after March 7, 1985, at or below market
rates;

(2) to guarantee or purchase insurance for local obligations to improve credit market
access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and interest
on revenue or general obligation bonds issued by the authority if the bond proceeds are
deposited in the fund;

(4) to provide loan guarantees, loans, or set-aside for similar revolving funds established
by a governmental unit other than state agencies, or state agencies under sections 17.117,
103F.725, subdivision 1a, and 116J.617;

(5) to earn interest on fund accounts;

(6) to pay the reasonable costs incurred by the authority and the Pollution Control Agency
of administering the fund and conducting activities required under the Federal Water Pollution
Control Act, including water quality management planning under section 205(j) of the act
and water quality standards continuing planning under section 303(e) of the act;

(7) to provide principal forgiveness or grants to the extent permitted under the Federal
Water Pollution Control Act and other federal law, based on the criteria and requirements
established for the wastewater infrastructure funding program under section 446A.072; and

(8) to provide loans, principal forgiveness, or grants to the extent permitted under the
Federal Water Pollution Control Act and other federal law to address green infrastructure,
water or energy efficiency improvements, or other environmentally innovative activities.

(b) Amounts spent under paragraph (a), clause (6), may not exceed the amount allowed
under the Federal Water Pollution Control Act.

(c) Principal forgiveness or grants provided under paragraph (a), clause (8), may not
exceed 25 percent of the eligible project costs as determined by the Pollution Control Agency
for project components directly related to green infrastructure, water or energy efficiency
improvements, or other environmentally innovative activities, up to a maximum of
$1,000,000. new text begin The authority must use the maximum amount of federal funds available for the
purposes of paragraph (a), clause (8), each fiscal year beginning in fiscal year 2023. If in
any fiscal year there is no maximum amount stated in federal law, regulation, or guidance
as being available for the purposes of paragraph (a), clause (8), the authority must use no
less than 20 percent of the federal funds in the clean water revolving fund for such purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 2.

new text begin [446A.077] GREEN INFRASTRUCTURE GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of program. new text end

new text begin The authority shall establish a green
infrastructure grant program to provide grants for green infrastructure projects.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Green infrastructure" has the meaning given in United States Code, title 33, section
1362, as amended through December 31, 2019, and also includes trails, bridges, roads, and
recreational amenities designed to mitigate stormwater impacts.
new text end

new text begin (c) "Political subdivision" means a county, home rule charter or statutory city, town, or
other political subdivision of the state.
new text end

new text begin (d) "Project" means a green infrastructure project to be owned and administered by a
political subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Creation of accounts. new text end

new text begin Two green infrastructure grant program accounts are
created. One account is created in the special revenue fund and one in the bond proceeds
fund. Money in the accounts is appropriated to the commissioner to make grants under this
section. Money in the green infrastructure grant program accounts is available until
encumbered or spent subject to section 16A.642.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin A political subdivision is eligible to apply for and receive a grant
from either green infrastructure grant program account established in this section.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin An application by a political subdivision for a grant under this
section must be made at the time and in the form and manner prescribed by the authority.
The authority must consult with the commissioner of management and budget on the form
of the application, the content of a request for proposals published to solicit applications
for the program under this section, and any prioritization criteria the authority intends to
apply to the program.
new text end

new text begin Subd. 6. new text end

new text begin Eligible project. new text end

new text begin A grant may be used to acquire land or an interest in land,
predesign, design, renovate, construct, furnish, and equip a project that is qualified to be
funded by state general obligation bonds under the Minnesota Constitution, article XI,
section 5, paragraph (a). Money from the account in the general fund may also be used for
green infrastructure that would not qualify to be funded by state general obligation bonds.
new text end

new text begin Subd. 7. new text end

new text begin Grants. new text end

new text begin (a) To be eligible for a grant under this section, a political subdivision
must timely submit an application to the authority and pass a resolution in support of the
project. The authority may give priority to a political subdivision that provides a local match
of funds for the project.
new text end

new text begin (b) A grant awarded under this section must be no less than the amount required to
complete the project, less any local funds committed to the project as required by section
16A.502.
new text end

new text begin (c) A grant under this section is in addition to any loan, principal forgiveness, or grant
awarded by the authority under section 446A.07, subdivision 8, paragraph (a), clause (8),
or 446A.081, subdivision 9, paragraph (a), clause (9).
new text end

new text begin Subd. 8. new text end

new text begin Cancellation. new text end

new text begin A grant under this section is available until the project is
completed or abandoned subject to section 16A.642.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 3.

Minnesota Statutes 2020, section 446A.081, subdivision 9, is amended to read:

Subd. 9.

Other uses of fund.

(a) The drinking water revolving loan fund may be used
as provided in the act, including the following uses:

(1) to buy or refinance the debt obligations, at or below market rates, of public water
systems for drinking water systems, where the debt was incurred after the date of enactment
of the act, for the purposes of construction of the necessary improvements to comply with
the national primary drinking water regulations under the federal Safe Drinking Water Act;

(2) to purchase or guarantee insurance for local obligations to improve credit market
access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and interest
on revenue or general obligation bonds issued by the authority if the bond proceeds are
deposited in the fund;

(4) to provide loans or loan guarantees for similar revolving funds established by a
governmental unit or state agency;

(5) to earn interest on fund accounts;

(6) to pay the reasonable costs incurred by the authority, the Department of Employment
and Economic Development, and the Department of Health for conducting activities as
authorized and required under the act up to the limits authorized under the act;

(7) to develop and administer programs for water system supervision, source water
protection, and related programs required under the act;

(8) to provide principal forgiveness or grants to the extent permitted under the federal
Safe Drinking Water Act and other federal law, based on the criteria and requirements
established for drinking water projects under the water infrastructure funding program under
section 446A.072;

(9) to provide loans, principal forgiveness or grants to the extent permitted under the
federal Safe Drinking Water Act and other federal law to address green infrastructure, water
or energy efficiency improvements, or other environmentally innovative activities;

(10) to provide principal forgiveness, or grants for 80 percent of project costs up to a
maximum of $100,000 for projects needed to comply with national primary drinking water
standards for an existing nonmunicipal community public water system; and

(11) to provide principal forgiveness or grants to the extent permitted under the federal
Safe Drinking Water Act and other federal laws for 50 percent of the project costs up to a
maximum of $250,000 for projects to replace the privately owned portion of drinking water
lead service lines.

(b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not
exceed 25 percent of the eligible project costs as determined by the Department of Health
for project components directly related to green infrastructure, water or energy efficiency
improvements, or other environmentally innovative activities, up to a maximum of
$1,000,000. new text begin The authority must use the maximum amount of federal funds available for the
purposes of paragraph (a), clause (9), each fiscal year beginning in fiscal year 2023. If in
any fiscal year there is no maximum amount stated in federal law, regulation, or guidance
as being available for the purposes of paragraph (a), clause (9), the authority must use no
less than 20 percent of the federal funds in the drinking water revolving loan fund for such
purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 4. new text begin GREEN INFRASTRUCTURE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation; state general obligation bonds. new text end

new text begin $20,000,000 is
appropriated from the bond proceeds fund to the Public Facilities Authority for grants under
Minnesota Statutes, section 446A.077.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation; general fund. new text end

new text begin $20,000,000 in fiscal year 2023 is appropriated
from the general fund to the Public Facilities Authority for grants under Minnesota Statutes,
section 446A.077.
new text end

new text begin Subd. 3. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the bond
proceeds fund, the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $20,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 5. new text begin APPROPRIATION; GREEN INFRASTRUCTURE PROJECTS.
new text end

new text begin (a) Of an appropriation in fiscal year 2023 for the green infrastructure grant program
under Minnesota Statutes, section 446A.077, the Public Facilities Authority must award
grants to:
new text end

new text begin (1) the Minneapolis Park and Recreation Board to replace, relocate, and improve public
park and water management infrastructure along Shingle, Bassett's, and Minnehaha Creeks
in Minneapolis; and
new text end

new text begin (2) Dakota County for a green infrastructure pilot project on a 2.4-mile segment of the
Mississippi River Greenway.
new text end

new text begin (b) A grant issued pursuant to this section must be no less than the amount required to
complete the project, less any local funds committed to the project as required by section
16A.502.
new text end

new text begin (c) The issuance of a grant pursuant to this section is conditioned on the completion of
an application required under Minnesota Statutes, section 446A.077, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end