1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to the environment; creating the Clean Water 1.3 Legacy Act; providing authority, direction, and 1.4 funding to achieve and maintain water quality 1.5 standards for Minnesota's surface waters in accordance 1.6 with section 303(d) of the federal Clean Water Act; 1.7 appropriating money; proposing coding for new law in 1.8 Minnesota Statutes chapter 446A; proposing coding for 1.9 new law as Minnesota Statutes, chapter 114D. 1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.11 Section 1. [114D.05] [CITATION.] 1.12 This chapter may be cited as the "Clean Water Legacy Act." 1.13 Sec. 2. [114D.10] [LEGISLATIVE PURPOSE.] 1.14 The purpose of the Clean Water Legacy Act is to protect, 1.15 restore, and preserve the quality of Minnesota's surface waters 1.16 by providing authority, direction, and resources to achieve and 1.17 maintain water quality standards for surface waters as required 1.18 by section 303(d) of the federal Clean Water Act, United States 1.19 Code, title 42, section 1313(d), and applicable federal 1.20 regulations. 1.21 Sec. 3. [114D.15] [DEFINITIONS.] 1.22 Subdivision 1. [APPLICATION.] The definitions provided in 1.23 this section apply to the terms used in this chapter. 1.24 Subd. 2. [CITIZEN MONITORING.] "Citizen monitoring" means 1.25 monitoring of surface water quality by individuals and 1.26 nongovernmental organizations that is consistent with Pollution 1.27 Control Agency guidance on monitoring procedures, quality 2.1 assurance protocols, and data management. 2.2 Subd. 3. [CLEAN WATER COUNCIL.] "Clean Water Council" or 2.3 "council" means the Clean Water Council created pursuant to 2.4 section 114D.30, subdivision 1. 2.5 Subd. 4. [FEDERAL TMDL REQUIREMENTS.] "Federal TMDL 2.6 requirements" means the requirements of section 303(d) of the 2.7 Clean Water Act, United States Code, title 42, section 1313(d), 2.8 and associated regulations and guidance. 2.9 Subd. 5. [IMPAIRED WATER.] "Impaired water" means surface 2.10 water that does not meet applicable water quality standards. 2.11 Subd. 6. [PUBLIC AGENCIES.] "Public agencies" means all 2.12 state agencies, political subdivisions, joint powers 2.13 organizations, and special purpose units of government with 2.14 authority, responsibility, or expertise in protecting, 2.15 restoring, or preserving the quality of surface waters, managing 2.16 or planning for surface waters and related lands, or financing 2.17 waters-related projects. "Public agencies" also includes the 2.18 University of Minnesota and other public education institutions. 2.19 Subd. 7. [RESTORATION.] "Restoration" means actions, 2.20 including effectiveness monitoring, that are taken to achieve 2.21 and maintain water quality standards for impaired waters in 2.22 accordance with a TMDL that has been approved by the United 2.23 States Environmental Protection Agency under federal TMDL 2.24 requirements. 2.25 Subd. 8. [SURFACE WATERS.] "Surface waters" means waters 2.26 of the state as defined in section 115.01, subdivision 22, 2.27 excluding groundwater as defined in section 115.01, subdivision 2.28 6. 2.29 Subd. 9. [THIRD-PARTY TMDL.] "Third-party TMDL" means a 2.30 TMDL that is developed in whole or in part by a qualified public 2.31 or private entity other than the Pollution Control Agency 2.32 consistent with the goals, policies, and priorities in section 2.33 114D.20. 2.34 Subd. 10. [TOTAL MAXIMUM DAILY LOAD OR TMDL.] "Total 2.35 maximum daily load" or "TMDL" means a calculation of the maximum 2.36 amount of a pollutant that may be introduced into a surface 3.1 water and still ensure that applicable water quality standards 3.2 for that water are achieved and maintained. A TMDL is the sum 3.3 of the pollutant load allocations for all sources of the 3.4 pollutant, including a wasteload allocation for point sources, a 3.5 load allocation for nonpoint sources and natural background, an 3.6 allocation for future growth of point and nonpoint sources, and 3.7 a margin of safety to account for uncertainty about the 3.8 relationship between pollutant loads and the quality of the 3.9 receiving surface water. "Natural background" means 3.10 characteristics of the water body resulting from the 3.11 multiplicity of factors in nature, including climate and 3.12 ecosystem dynamics, that affect the physical, chemical, or 3.13 biological conditions in a water body, but does not include 3.14 measurable and distinguishable pollution that is attributable to 3.15 human activity or influence. A TMDL must take into account 3.16 seasonal variations. 3.17 Subd. 11. [WATER QUALITY STANDARDS.] "Water quality 3.18 standards" for Minnesota surface waters are found in Minnesota 3.19 Rules, chapters 7050 and 7052. 3.20 Sec. 4. [114D.20] [IMPLEMENTATION; COORDINATION; GOALS; 3.21 POLICIES; AND PRIORITIES.] 3.22 Subdivision 1. [COORDINATION AND COOPERATION.] In 3.23 implementing this chapter, public agencies shall take into 3.24 consideration the relevant provisions of local and other 3.25 applicable water management, conservation, land use, land 3.26 management, and development plans and programs. Public agencies 3.27 with authority for local water management, conservation, land 3.28 use, land management, and development plans shall take into 3.29 consideration the manner in which their plans affect the 3.30 implementation of this chapter. Public agencies shall identify 3.31 opportunities to participate and assist in the successful 3.32 implementation of this chapter, including the funding or 3.33 technical assistance needs, if any, that may be necessary. In 3.34 implementing this chapter, public agencies shall endeavor to 3.35 engage the cooperation of organizations and individuals whose 3.36 activities affect the quality of surface waters, including point 4.1 and nonpoint sources of pollution, and who have authority and 4.2 responsibility for water management, planning, and protection. 4.3 To the extent practicable, public agencies shall endeavor to 4.4 enter into formal and informal agreements and arrangements with 4.5 federal agencies and departments to jointly utilize staff and 4.6 resources to deliver programs or conduct activities to achieve 4.7 the intent of this chapter, including efforts under the federal 4.8 Clean Water Act and other federal farm and soil and water 4.9 conservation programs. 4.10 Subd. 2. [GOALS FOR IMPLEMENTATION.] The following goals 4.11 must guide the implementation of this chapter: 4.12 (1) to identify impaired waters in accordance with federal 4.13 TMDL requirements within ten years after the effective date of 4.14 this section and thereafter to ensure continuing evaluation of 4.15 surface waters for impairments; 4.16 (2) to submit TMDL's to the United States Environmental 4.17 Protection Agency for all impaired waters in a timely manner in 4.18 accordance with federal TMDL requirements; 4.19 (3) to set a reasonable time for implementing restoration 4.20 of each identified impaired water; 4.21 (4) to provide assistance and incentives to prevent waters 4.22 from becoming impaired and to improve the quality of waters 4.23 which are listed as impaired but have no approved TMDL 4.24 addressing the impairment; and 4.25 (5) to promptly seek the delisting of waters from the 4.26 impaired waters list when those waters are shown to achieve the 4.27 designated uses applicable to the waters. 4.28 Subd. 3. [IMPLEMENTATION POLICIES.] The following policies 4.29 must guide the implementation of this chapter: 4.30 (1) develop regional and watershed TMDL's, and TMDL's for 4.31 multiple pollutants, where reasonable and feasible; 4.32 (2) maximize use of available organizational, technical, 4.33 and financial resources to perform sampling, monitoring, and 4.34 other activities to identify impaired waters, including use of 4.35 citizen monitoring; 4.36 (3) maximize opportunities for restoration of impaired 5.1 waters, by prioritizing and targeting of available programmatic, 5.2 financial, and technical resources and by providing additional 5.3 state resources to complement and leverage available resources; 5.4 (4) use existing regulatory authorities to achieve 5.5 restoration for point and nonpoint sources of pollution where 5.6 applicable, and promote the development and use of effective 5.7 nonregulatory measures to address pollution sources for which 5.8 regulations are not applicable; 5.9 (5) use restoration methods that have a demonstrated 5.10 effectiveness in reducing impairments and provide the greatest 5.11 long-term positive impact on water quality protection and 5.12 improvement while incorporating innovative approaches on a 5.13 case-by-case basis; 5.14 (6) identify for the legislature any innovative approaches 5.15 that may strengthen or complement existing programs; and 5.16 (7) identify and encourage implementation of measures to 5.17 prevent waters from becoming impaired and to improve the quality 5.18 of waters that are listed as impaired but have no approved TMDL 5.19 addressing the impairment. 5.20 Subd. 4. [PRIORITIES FOR IDENTIFYING IMPAIRED WATERS.] The 5.21 Pollution Control Agency, in accordance with federal TMDL 5.22 requirements, shall set priorities for identifying impaired 5.23 waters, giving consideration to: 5.24 (1) waters where impairments would pose the greatest 5.25 potential risk to human or aquatic health; and 5.26 (2) waters where data developed through public agency or 5.27 citizen monitoring or other means, provides evidence that an 5.28 impaired condition exists. 5.29 Subd. 5. [PRIORITIES FOR PREPARATION OF TMDL'S.] The Clean 5.30 Water Council shall recommend priorities for scheduling and 5.31 preparing TMDL's taking into account the severity of the 5.32 impairment, the designated uses of those waters, and other 5.33 applicable federal TMDL requirements. In recommending 5.34 priorities, the council shall also give consideration to waters 5.35 and watersheds: 5.36 (1) with impairments that pose the greatest potential risk 6.1 to human health; 6.2 (2) with impairments that pose the greatest potential risk 6.3 to aquatic health; 6.4 (3) where other public agencies and participating 6.5 organizations and individuals, especially local, basinwide, or 6.6 regional agencies or organizations, have demonstrated readiness 6.7 to assist in carrying out the responsibilities, including 6.8 availability and organization of human, technical, and financial 6.9 resources necessary to undertake the work; and 6.10 (4) where there is demonstrated coordination and 6.11 cooperation among cities, counties, watershed districts, and 6.12 soil and water conservation districts in planning and 6.13 implementation of activities that will assist in carrying out 6.14 the responsibilities. 6.15 Subd. 6. [PRIORITIES FOR RESTORATION OF IMPAIRED 6.16 WATERS.] In implementing restoration of impaired waters, in 6.17 addition to the priority considerations in subdivision 5 the 6.18 Clean Water Council shall give priority in its recommendations 6.19 for restoration funding from the clean water legacy account to 6.20 restoration projects that: 6.21 (1) coordinate with and utilize existing local authorities 6.22 and infrastructure for implementation; 6.23 (2) can be implemented in whole or in part by providing 6.24 support for existing or ongoing restoration efforts; and 6.25 (3) most effectively leverage other sources of restoration 6.26 funding, including federal, state, local, and private sources of 6.27 funds; and 6.28 (4) show a high potential for early restoration and 6.29 delisting based upon data developed through public agency or 6.30 citizen monitoring or other means. 6.31 Subd. 7. [PRIORITIES FOR FUNDING PREVENTION ACTIONS.] The 6.32 Clean Water Council shall apply the priorities applicable under 6.33 subdivision 6, as far as practicable, when recommending 6.34 priorities for funding actions to prevent waters from becoming 6.35 impaired and to improve the quality of waters which are listed 6.36 as impaired but have no approved TMDL. 7.1 Sec. 5. [114D.25] [ADMINISTRATION; POLLUTION CONTROL 7.2 AGENCY.] 7.3 Subdivision 1. [GENERAL DUTIES AND AUTHORITIES.] The 7.4 Pollution Control Agency, in accordance with federal TMDL 7.5 requirements, shall: identify impaired waters and propose a 7.6 list of the waters for review and approval by the United States 7.7 Environmental Protection Agency; develop and approve TMDL's for 7.8 listed impaired waters and submit the approved TMDL's to the 7.9 United State Environmental Protection Agency for final approval; 7.10 and propose to delist waters from the Environmental Protection 7.11 Agency impaired waters list. 7.12 Subd. 2. [ADMINISTRATIVE PROCEDURES FOR TMDL 7.13 APPROVAL.] The approval of a TMDL by the Pollution Control 7.14 Agency must be considered a final decision of the agency, and is 7.15 subject to the contested case procedures of sections 14.57 to 7.16 14.62, and to judicial review under sections 14.63 to 14.69. A 7.17 TMDL is not subject to the rulemaking requirements of chapter 7.18 14, including section 14.386. 7.19 Subd. 3. [THIRD-PARTY TMDL DEVELOPMENT.] The Pollution 7.20 Control Agency may enter agreements with any qualified public or 7.21 private entity setting forth the terms and conditions under 7.22 which that entity is authorized to develop a third-party TMDL. 7.23 In determining whether an entity is qualified to develop a 7.24 third-party TMDL, the agency shall consider the technical and 7.25 administrative qualifications of the entity and may not enter 7.26 into an agreement with a third-party entity that has a conflict 7.27 of interest with respect to the development of the third-party 7.28 TMDL. A third-party TMDL is subject to modification and 7.29 approval by the Pollution Control Agency, and must be approved 7.30 by the Pollution Control Agency before it is submitted to the 7.31 United States Environmental Protection Agency. The Pollution 7.32 Control Agency shall consider authorizing the development of 7.33 third-party TMDL's consistent with the goals, policies, and 7.34 priorities determined under section 116.384. 7.35 Sec. 6. [114D.30] [CLEAN WATER COUNCIL.] 7.36 Subdivision 1. [CREATION; DUTIES.] A Clean Water Council 8.1 is created to advise on the administration and implementation of 8.2 this chapter, and foster coordination and cooperation as 8.3 described in section 114D.20, subdivision 1. The council may 8.4 also advise on the development of appropriate processes for 8.5 expert scientific review as described in section 114D.35, 8.6 subdivision 2. The Pollution Control Agency shall provide 8.7 administrative support for the council with the support of other 8.8 member agencies. The members of the council shall elect a chair 8.9 from the nonagency members of the council. 8.10 Subd. 2. [MEMBERSHIP; APPOINTMENT.] The commissioners of 8.11 natural resources, agriculture, and the Pollution Control 8.12 Agency, and the executive director of the Board of Water and 8.13 Soil Resources are the appointing authorities for the council. 8.14 Each appointing authority shall appoint one person from their 8.15 respective agency to serve as a member of the council. The 8.16 appointing authorities, acting jointly, shall appoint 13 8.17 additional nonagency members of the council as follows: 8.18 (1) two members representing statewide farm organizations; 8.19 (2) two members representing business organizations; 8.20 (3) two members representing environmental organizations; 8.21 (4) one member representing soil and water conservation 8.22 districts; 8.23 (5) one member representing watershed districts; 8.24 (6) one member representing organizations focused on 8.25 improvement of Minnesota lakes or streams; 8.26 (7) one member representing an organization of county 8.27 governments; 8.28 (8) two members representing organizations of city 8.29 governments; and 8.30 (9) one member representing the Metropolitan Council 8.31 established under section 473.123. 8.32 Subd. 3. [TERMS; COMPENSATION; REMOVAL.] The initial terms 8.33 of members representing state agencies and the Metropolitan 8.34 Council expire on the first Monday in January, 2007. 8.35 Thereafter, the terms of members representing the state agencies 8.36 and the Metropolitan Council are four years and are coterminous 9.1 with the governor. The terms of other members of the council 9.2 shall be as provided in section 15.059, subdivision 2. Members 9.3 may serve until their successors are appointed and qualify. 9.4 Compensation and removal of council members is as provided in 9.5 section 15.059, subdivisions 3 and 4. A vacancy on the council 9.6 may be filled by the appointing authority provided in 9.7 subdivision 1 for the remainder of the unexpired term. 9.8 Subd. 4. [IMPLEMENTATION PLAN.] The Clean Water Council 9.9 shall prepare a plan for implementation of this chapter. The 9.10 plan shall address general procedures and timeframes for 9.11 implementing this chapter, and shall include a more specific 9.12 implementation work plan for the next fiscal biennium and a 9.13 framework for setting priorities to address impaired waters 9.14 consistent with section 114D.45, subdivisions 2 to 7. The 9.15 council shall issue the first implementation plan under this 9.16 subdivision by December 1, 2005, and shall issue a revised work 9.17 plan by December 1 of each even-numbered year thereafter. 9.18 Subd. 5. [RECOMMENDATIONS ON APPROPRIATION OF FUNDS.] The 9.19 Clean Water Council shall recommend to the governor the manner 9.20 in which money from the clean water legacy account should be 9.21 appropriated for the purposes identified in section 114D.45, 9.22 subdivision 3. The council's recommendations must be consistent 9.23 with the purposes, policies, goals, and priorities in sections 9.24 114D.05 to 114D.35, and shall allocate adequate support and 9.25 resources to identify impaired waters, develop TMDL's, implement 9.26 restoration of impaired waters, and provide assistance and 9.27 incentives to prevent waters from becoming impaired and improve 9.28 the quality of waters which are listed as impaired but have no 9.29 approved TMDL. 9.30 Subd. 6. [BIENNIAL REPORT TO LEGISLATURE.] By December 1 9.31 of each even-numbered year, the council shall submit a report to 9.32 the legislature on the activities for which money from the clean 9.33 water legacy account has been or will be spent for the current 9.34 biennium, and the activities for which money from the account is 9.35 recommended to be spent in the next biennium. The report due on 9.36 December 1, 2014, must include an evaluation of the progress 10.1 made through June 30, 2014, in implementing this chapter, the 10.2 need for funding of future implementation of those sections, and 10.3 recommendations for the sources of such funding. 10.4 Sec. 7. [114D.35] [PUBLIC AND STAKEHOLDER PARTICIPATION; 10.5 SCIENTIFIC REVIEW; EDUCATION.] 10.6 Subdivision 1. [PUBLIC AND STAKEHOLDER PARTICIPATION.] 10.7 Public agencies involved in the implementation of this chapter 10.8 shall encourage participation by the public and stakeholders, 10.9 including local citizens, land owners and managers, and public 10.10 and private organizations, in the identification of impaired 10.11 waters, in developing TMDL's, and in planning and implementing 10.12 restoration of impaired waters. In particular, the Pollution 10.13 Control Agency shall make reasonable efforts to provide timely 10.14 information to the public and to stakeholders about impaired 10.15 waters that have been identified by the agency. The agency 10.16 shall seek broad and early public and stakeholder participation 10.17 in scoping the activities necessary to develop a TMDL, including 10.18 the scientific models, methods, and approaches to be used in 10.19 TMDL development, and to implement restoration pursuant to 10.20 section 114D.15, subdivision 7. 10.21 Subd. 2. [EXPERT SCIENTIFIC ADVICE.] The Clean Water 10.22 Council and public agencies shall make use of available 10.23 expertise from educational, research, and technical 10.24 organizations, including the University of Minnesota and other 10.25 higher education institutions, to provide appropriate 10.26 independent expert advice on models, methods, and approaches 10.27 used in identifying impaired waters, developing TMDL's, and 10.28 implementing prevention and restoration. 10.29 Subd. 3. [EDUCATION.] The Clean Water Council shall 10.30 develop strategies for informing, educating, and encouraging the 10.31 participation of citizens, stakeholders, and others regarding 10.32 the identification of impaired waters, development of TMDL's, 10.33 and development and implementation of restoration for impaired 10.34 waters. Public agencies shall be responsible for implementing 10.35 the strategies. 10.36 Sec. 8. [114D.40] [CLEAN WATER FEES.] 11.1 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 11.2 subdivision apply to the terms used in this section. 11.3 (b) "Average daily discharge or application limitation" 11.4 means the highest allowable average of daily discharge or land 11.5 application during a calendar day or any 24-hour period that 11.6 reasonably represents the discharge during the calendar day for 11.7 the purposes of sampling, calculated as the sum of all daily 11.8 discharges or land applications measured during a day, divided 11.9 by the number of daily discharges or land applications during 11.10 that day. 11.11 (c) "Effluent flow" means the flow of domestic wastewater 11.12 from a residential dwelling or nonresidential establishment. 11.13 The rate of water usage by a residential dwelling or 11.14 nonresidential establishment must be substituted for the 11.15 effluent flow if effluent flow from the residential dwelling or 11.16 nonresidential establishment is not measured. 11.17 (d) "Fee collection authorities" means counties, the 11.18 Pollution Control Agency, and public agencies with authority to 11.19 collect fees and charges for sewer services provided by a 11.20 publicly owned treatment works. 11.21 (e) "Individual sewage treatment system" means a sewage 11.22 treatment system, or part thereof, that is regulated by the 11.23 state or its political subdivisions, and which serves a 11.24 residential dwelling, or nonresidential establishment, or group 11.25 thereof, using sewage tanks followed by soil treatment and 11.26 disposal or using advanced treatment devices that discharge 11.27 below final grade. "Individual sewage treatment system" also 11.28 includes sewage holding tanks and privies. 11.29 (f) "Nonresidential establishment" means a structure or 11.30 portion of a structure that is not a residential dwelling. 11.31 (g) "Publicly owned treatment works" means a device or 11.32 system used in the treatment, recycling, or reclamation of 11.33 municipal sewage or liquid industrial waste that is owned by the 11.34 state, a political subdivision, sanitary district, or other 11.35 public organization established under state law and which relies 11.36 primarily on wastewater treatment systems other than individual 12.1 sewage treatment systems. 12.2 (h) "Residential dwelling" means a room or group of rooms 12.3 used by an individual, family, or other group as living quarters 12.4 which includes facilities for sleeping, eating, cooking, and 12.5 sanitation. "Residential dwelling" includes apartments, 12.6 condominiums, cooperatives, attached and detached dwellings, 12.7 mobile homes, seasonal or recreational dwellings, or a dwelling 12.8 in which a resident of that dwelling engages in a business or 12.9 employment. A farm that includes buildings is treated as a 12.10 residential dwelling. "Residential dwelling" does not include: 12.11 (1) hotels, motels, resorts, boarding houses, clubs, 12.12 hospitals, nursing homes, dormitories, schools, colleges, or 12.13 similar institutional or transient facility; or 12.14 (2) any residential dwelling containing not more than two 12.15 residential dwelling units which receive a single bill for sewer 12.16 services with one or more nonresidential establishments. 12.17 Subd. 2. [ASSESSMENT OF CLEAN WATER FEES.] A clean water 12.18 fee is imposed as provided in subdivision 3 on all discharges of 12.19 domestic and industrial wastewater to sanitary sewer systems; 12.20 wastewater treatment plants, facilities, or systems; individual 12.21 sewage treatment systems; and other systems. 12.22 Subd. 3. [FEE AMOUNTS.] (a) The amounts of the clean water 12.23 fees imposed under this section are as provided in this 12.24 subdivision. 12.25 (b) For discharges to sanitary sewer systems served by a 12.26 publicly owned treatment works, the clean water fees are as 12.27 follows: 12.28 (1) for each residential dwelling that receives a separate 12.29 bill for service and contains not more than two residential 12.30 dwelling units, $36 per year; 12.31 (2) for a structure that contains more than two residential 12.32 dwelling units that do not receive separate bills for service, 12.33 clean water fees must be calculated as follows: 12.34 (i) $36 per year for each residential dwelling unit in the 12.35 structure; and 12.36 (ii) any nonresidential establishment which is billed 13.1 together with the residential dwelling units is subject to a 13.2 clean water fee on that portion of the effluent flow for the 13.3 structure that is attributable to that nonresidential 13.4 establishment, and the fee must be calculated based on effluent 13.5 flows as provided in clause (3); and 13.6 (3) for each nonresidential establishment that receives a 13.7 separate bill for service, the fee is as follows: 13.8 (i) if average effluent flow is less than 10,000 gallons 13.9 per day, $120 per year; 13.10 (ii) if average effluent flow is 10,000 gallons per day or 13.11 greater, but less than 100,000 gallons per day, $300 per year; 13.12 and 13.13 (iii) if average effluent flow is 100,000 gallons per day 13.14 or greater, $600 per year. 13.15 (c) Except as provided in paragraph (d), for discharges 13.16 from wastewater treatment facilities, other than publicly owned 13.17 treatment works, which are required to obtain a national 13.18 pollution discharge elimination system or state disposal system 13.19 permit, the fee is as follows: 13.20 (1) for permits authorizing an average daily discharge or 13.21 land application limitation of less than 10,000 gallons on an 13.22 annualized basis, $120 per year; 13.23 (2) for permits authorizing an average daily discharge or 13.24 land application limitation of 10,000 gallons per day or 13.25 greater, but less than 100,000 gallons per day, $300 per year; 13.26 and 13.27 (3) for permits authorizing an average daily discharge or 13.28 land application limitation of 100,000 gallons per day or 13.29 greater, $600 per year. 13.30 (d) A clean water fee must not be imposed under paragraph 13.31 (c), on discharges from a facility that operates under a general 13.32 permit issued by the agency. 13.33 (e) For discharges to domestic wastewater treatment systems 13.34 permitted by the Pollution Control Agency, excluding publicly 13.35 owned treatment works, the fee is $36 per year for each 13.36 residential dwelling and nonresidential establishment that 14.1 discharges to the systems. No single residential unit or 14.2 nonresidential establishment may be required to pay more than 14.3 one clean water fee under this paragraph. 14.4 (f) For individual sewage treatment systems not permitted 14.5 by the Pollution Control Agency, the fee is $36 per year for 14.6 each residential dwelling and nonresidential establishment 14.7 served by the system. No single residential unit or 14.8 nonresidential establishment may be required to pay more than 14.9 one clean water fee under this paragraph. 14.10 (g) For any wastewater system not described in paragraphs 14.11 (b) to (f), that accepts and discharges untreated or partially 14.12 treated wastewater, the fee is $36 per year for each residential 14.13 dwelling and nonresidential establishment that discharges to the 14.14 system. 14.15 (h) Any single residential unit or nonresidential 14.16 establishment that would be subject to payment of a clean water 14.17 fee under both paragraphs (f) and (g) may only be required to 14.18 pay the clean water fee under paragraph (e). 14.19 Subd. 4. [COLLECTION AND ENFORCEMENT.] (a) Fees imposed on 14.20 discharges to sanitary sewer systems served by publicly owned 14.21 treatment works must be collected by the public agency that 14.22 collects fees or charges from the users of that service. The 14.23 fees must be collected at the same time and with the same 14.24 frequency as fees or charges for service are collected. The 14.25 collecting entity may enforce payment of the fees using the same 14.26 enforcement authority applicable to sewer service charges. 14.27 (b) Fees imposed under subdivision 3, paragraphs (c) and 14.28 (e), must be collected by the Pollution Control Agency from the 14.29 permittees for the facilities or systems. The Pollution Control 14.30 Agency may enforce payment of the fees using the same 14.31 enforcement authority applicable to permit fees. 14.32 (c) Fees imposed under subdivision 3, paragraphs (f) and 14.33 (g), must be collected by each county, from the owners of the 14.34 residential dwellings or nonresidential establishments subject 14.35 to the fee that are located in the county. The counties shall 14.36 collect the fees at least once per calendar year, but may 15.1 collect the fees more frequently. If fees are collected 15.2 annually, the counties shall require payment of the fees by not 15.3 later than February 1 following the calendar year for which the 15.4 fee is imposed. The counties shall determine that manner in 15.5 which the fees are collected. Each county shall enact and 15.6 enforce an appropriate ordinance to enforce payment of the fees. 15.7 (d) By August 15, 2005, the counties shall identify and 15.8 develop a list of all persons subject to the fees under 15.9 subdivision 3, paragraphs (f) and (g), located in that county. 15.10 The counties shall annually update the list by August 15 of each 15.11 year. 15.12 (e) The fee collection authorities shall exempt a person 15.13 from payment of the clean water fee for a discharge of 15.14 wastewater from a residential dwelling if the fee collection 15.15 authority determines that the person meets any of the criteria 15.16 for eligibility under the telephone assistance plan established 15.17 under section 237.70, or that the person is receiving telephone 15.18 assistance under that plan. The Pollution Control Agency shall 15.19 create a form that fee collection authorities shall use to 15.20 determine eligibility for exemption under this paragraph. 15.21 (f) Any statement, invoice, or other document used to 15.22 collect the fees under this subdivision must clearly identify 15.23 the fee as the "Minnesota Clean Water Fee." 15.24 Subd. 5. [PAYMENT TO COMMISSIONER OF REVENUE; DEPOSIT.] (a) 15.25 The fee collection authorities shall remit all fees collected 15.26 under this section, less the costs to collect the fees, not to 15.27 exceed five percent of the total collected, to the commissioner 15.28 of revenue. The fees must be remitted in a manner prescribed by 15.29 the commissioner. Amounts collected during the previous 15.30 calendar quarter must be remitted to the commissioner on April 15.31 30, July 31, October 31, and January 31. In addition to the 15.32 costs of collecting the fees, the fee collection authorities may 15.33 retain from fees collected for calendar year 2006 the costs to 15.34 develop methods and procedures for collecting the clean water 15.35 fees. 15.36 (b) The commissioner of revenue shall deposit all clean 16.1 water fees remitted by the fee collection authorities in the 16.2 clean water legacy account. 16.3 (c) The assessment, audit, refund, penalty, interest, 16.4 enforcement, collection remedies, appeal, and administrative 16.5 provisions of chapters 270 and 289A that are applicable to fees 16.6 imposed under chapter 297A apply to the fees imposed by this 16.7 section. 16.8 Subd. 6. [EFFECTIVE DATE; REPEALER.] The fees imposed by 16.9 this section are effective and collection must begin for the 16.10 year beginning January 1, 2006. This section is repealed on 16.11 December 31, 2015. 16.12 Sec. 9. [114D.45] [CLEAN WATER LEGACY ACCOUNT.] 16.13 Subdivision 1. [CREATION.] The clean water legacy account 16.14 is created as an account in the environmental fund. Money in 16.15 the account must be made available for the implementation of 16.16 this chapter and sections 446A.073 and 446A.074, without 16.17 supplanting or taking the place of any other funds which are 16.18 currently available or may become available from any other 16.19 source, whether federal, state, local, or private, for 16.20 implementation of those sections. 16.21 Subd. 2. [SOURCES OF REVENUE.] The following revenues must 16.22 be deposited in the clean water legacy account: 16.23 (1) the revenue from the clean water fees collected under 16.24 section 114D.40; and 16.25 (2) interest accrued on the account. 16.26 Subd. 3. [USES OF ACCOUNT.] Subject to appropriation by 16.27 the legislature, the clean water legacy account may be used for 16.28 the following purposes: 16.29 (1) to provide grants, loans, and technical assistance to 16.30 public agencies and others who are participating in the process 16.31 of identifying impaired waters, developing TMDL's, implementing 16.32 restoration plans for impaired waters, and monitoring the 16.33 effectiveness of restoration; 16.34 (2) to support measures to prevent waters from becoming 16.35 impaired and to improve the quality of waters that are listed as 16.36 impaired but have no approved TMDL addressing the impairment; 17.1 (3) to provide grants and loans for wastewater and 17.2 stormwater treatment projects through the Public Facilities 17.3 Authority; 17.4 (4) to support the efforts of public agencies associated 17.5 with individual sewage treatment systems and financial 17.6 assistance for upgrading and replacing the systems; and 17.7 (5) to provide funds to state agencies to carry out their 17.8 responsibilities under this chapter. 17.9 Sec. 10. [446A.073] [CLEAN WATER LEGACY PHOSPHORUS 17.10 REDUCTION GRANTS.] 17.11 Subdivision 1. [CREATION OF FUND.] The authority shall 17.12 establish a clean water legacy capital improvement fund and 17.13 shall make grants from the fund as provided in this section. 17.14 Subd. 2. [GRANTS.] The authority shall award grants from 17.15 the clean water legacy capital improvement fund to governmental 17.16 units for the capital costs of wastewater treatment facility 17.17 projects or a portion thereof that will reduce the discharge of 17.18 total phosphorus from the facility to one milligram per liter or 17.19 less. A project is eligible for a grant if it meets the 17.20 following requirements: 17.21 (1) the applicable phosphorus discharge limit is 17.22 incorporated in a permit issued by the agency for the wastewater 17.23 treatment facility on or after March 28, 2000, or the grantee 17.24 agrees to comply with the applicable limit as a condition of 17.25 receiving the grant; 17.26 (2) the governmental unit has submitted a facilities plan 17.27 for the project to the agency and a grant application to the 17.28 authority on a form prescribed by the authority; and 17.29 (3) the agency has approved the application and facilities 17.30 plan, and certified the eligible costs for the project to the 17.31 authority. 17.32 Subd. 3. [ELIGIBLE CAPITAL COSTS.] Eligible capital costs 17.33 for phosphorus reduction grants under subdivision 4, paragraph 17.34 (a), include the as-bid construction costs and engineering 17.35 planning and design costs. Eligible capital costs for 17.36 phosphorus reduction grants under subdivision 4, paragraph (b), 18.1 include the final, incurred construction, engineering, planning, 18.2 and design costs. 18.3 Subd. 4. [GRANT AMOUNTS AND PRIORITIES.] (a) Priority must 18.4 be given to projects that start construction on or after July 1, 18.5 2005. If a facility's plan for a project is approved by the 18.6 agency before July 1, 2009, the amount of the grant is 75 18.7 percent of the eligible capital cost of the project. If a 18.8 facility's plan for a project is approved by the agency on or 18.9 after July 1, 2009, the amount of the grant is 50 percent of the 18.10 eligible capital cost of the project. Priority in awarding 18.11 grants under this paragraph must be based on the date of 18.12 approval of the facility's plan for the project. 18.13 (b) Projects that meet the eligibility requirements in 18.14 subdivision 2 and have started construction before July 1, 2005, 18.15 are eligible for grants to reimburse up to 75 percent of the 18.16 eligible capital cost of the project, less any amounts 18.17 previously received in grants from other sources. Application 18.18 for a grant under this paragraph must be submitted to the agency 18.19 no later than June 30, 2007. Priority for award of grants under 18.20 this paragraph must be based on the date of agency approval of 18.21 the application for the grant. 18.22 (c) In each fiscal year that money is available for grants, 18.23 the authority shall first award grants under paragraph (a) to 18.24 projects that met the eligibility requirements of subdivision 2 18.25 by May 1 of that year. The authority shall use any remaining 18.26 money available that year to award grants under paragraph (b). 18.27 Grants that have been approved but not awarded in a previous 18.28 fiscal year carry over and must be awarded in subsequent fiscal 18.29 years in accordance with the priorities in this paragraph. 18.30 (d) Disbursements of grants under this section by the 18.31 authority to recipients must be made for eligible project costs 18.32 as incurred by the recipients, and must be made by the authority 18.33 in accordance with the project financing agreement and 18.34 applicable state law. 18.35 Subd. 5. [FEES.] The authority may charge the grant 18.36 recipient a fee for its administrative costs not to exceed 19.1 one-half of one percent of the grant amount, to be paid upon 19.2 execution of the grant agreement. 19.3 Sec. 11. [446A.074] [SMALL COMMUNITY WASTEWATER TREATMENT 19.4 LOAN PROGRAM.] 19.5 Subdivision 1. [CREATION OF FUND.] The authority shall 19.6 establish a small community wastewater treatment fund and shall 19.7 make loans from the fund as provided in this section. Money in 19.8 the fund is annually appropriated to the authority and does not 19.9 lapse. The fund shall be credited with all loan repayments and 19.10 investment income from the fund, and servicing fees assessed 19.11 under section 446A.04, subdivision 5. The authority shall 19.12 manage and administer the small community wastewater treatment 19.13 fund, and for these purposes, may exercise all powers provided 19.14 in this chapter. 19.15 Subd. 2. [LOANS.] The authority shall award loans to 19.16 governmental units from the small community wastewater treatment 19.17 fund for projects to replace noncomplying individual sewage 19.18 treatment systems with a community wastewater treatment system 19.19 or systems meeting the requirements of section 115.55. A 19.20 governmental unit receiving a loan from the fund shall own the 19.21 community wastewater treatment systems built under the program 19.22 and shall be responsible, either directly or through a contract 19.23 with a private vendor, for all inspections, maintenance, and 19.24 repairs necessary to assure proper operation of the systems. 19.25 Subd. 3. [PROJECT PRIORITY LIST.] Governmental units 19.26 seeking loans from the small community wastewater treatment loan 19.27 program shall first submit a project proposal to the agency. A 19.28 project proposal shall include a compliance determination for 19.29 all individual sewage treatment systems in the project area. 19.30 The agency shall rank project proposals on its project priority 19.31 list used for the water pollution control revolving fund under 19.32 section 446A.07. 19.33 Subd. 4. [LOAN APPLICATIONS.] Governmental units with 19.34 projects on the project priority list shall submit applications 19.35 to the authority on forms prescribed by the authority. The 19.36 application shall include: 20.1 (1) a list of the individual sewage treatment systems 20.2 proposed to be replaced over a period of up to three years; 20.3 (2) a project schedule and cost estimate for each year of 20.4 the project; 20.5 (3) a financing plan for repayment of the loan; and 20.6 (4) a management plan providing for the inspection, 20.7 maintenance, and repairs necessary to assure proper operation of 20.8 the systems. 20.9 Subd. 5. [LOAN AWARDS.] The authority shall award loans to 20.10 governmental units with approved loan applications based on 20.11 their ranking on the agency's project priority list. The loan 20.12 amount shall be based on the estimated project costs for the 20.13 portion of the project expected to be completed within one year, 20.14 up to an annual maximum of $500,000. For projects expected to 20.15 take more than one year to complete, the authority may make a 20.16 multiyear commitment for a period not to exceed three years, 20.17 contingent on the future availability of funds. Each year of a 20.18 multiyear commitment must be funded by a separate loan agreement 20.19 meeting the terms and conditions in subdivision 6. A 20.20 governmental unit receiving a loan under a multiyear commitment 20.21 shall have priority for additional loan funds in subsequent 20.22 years. 20.23 Subd. 6. [LOAN TERMS AND CONDITIONS.] Loans from the small 20.24 community wastewater treatment fund shall comply with the 20.25 following terms and conditions: 20.26 (1) principal and interest payments must begin no later 20.27 than two years after the loan is awarded; 20.28 (2) loans shall carry an interest rate of one percent; 20.29 (3) loans shall be fully amortized within ten years of the 20.30 first scheduled payment or, if the loan amount exceeds $10,000 20.31 per household, shall be fully amortized within 20 years but not 20.32 to exceed the expected design life of the system; 20.33 (4) a governmental unit receiving a loan must establish a 20.34 dedicated source or sources of revenues for repayment of the 20.35 loan and must issue a general obligation note to the authority 20.36 for the full amount of the loan; and 21.1 (5) each property owner to be served by a community 21.2 wastewater treatment system under this program must provide an 21.3 easement to the governmental unit to allow access to the system 21.4 for management and repairs. 21.5 Subd. 7. [SPECIAL ASSESSMENT DEFERRAL.] (a) A governmental 21.6 unit receiving a loan under this section that levies special 21.7 assessments to repay the loan may defer payment of the 21.8 assessments under the provisions of sections 435.193 to 435.195. 21.9 (b) A governmental unit that defers payment of special 21.10 assessments for one or more properties under paragraph (a) may 21.11 request deferral of that portion of the debt service on its 21.12 loan, and the authority shall accept appropriate amendments to 21.13 the general obligation note of the governmental unit. If 21.14 special assessment payments are later received from properties 21.15 that received a deferral, the funds received shall be paid to 21.16 the authority with the next scheduled loan payment. 21.17 Subd. 8. [ELIGIBLE COSTS.] Eligible costs for small 21.18 community wastewater treatment loans shall include the costs of 21.19 planning, design, construction, legal fees, administration, and 21.20 land acquisition. 21.21 Subd. 9. [DISBURSEMENTS.] Loan disbursements by the 21.22 authority under this section must be made for eligible project 21.23 costs as incurred by the recipients, and must be made in 21.24 accordance with the project loan agreement and applicable state 21.25 law. 21.26 Subd. 10. [AUDITS.] A governmental unit receiving a loan 21.27 under this section must annually provide to the authority for 21.28 the term of the loan a copy of its annual independent audit or, 21.29 if the governmental unit is not required to prepare an 21.30 independent audit, a copy of the annual financial reporting form 21.31 it provides to the state auditor. 21.32 Sec. 12. [APPROPRIATIONS.] 21.33 Subdivision 1. [GENERAL PROVISIONS.] The appropriations in 21.34 this section are from the environmental fund and are available 21.35 for the fiscal years ending June 30, 2006, and June 30, 2007. 21.36 Unless otherwise specified in this section, these appropriations 22.1 do not cancel and remain available until June 30, 2007. 22.2 Appropriations in this section that are encumbered under 22.3 contract, including grant contract, on or before June 30, 2007, 22.4 are available until June 30, 2009. 22.5 Subd. 2. [DEPARTMENT OF REVENUE; FEE COLLECTION 22.6 COSTS.] $38,000 in fiscal year 2006 and $31,000 in fiscal year 22.7 2007 are appropriated to the Department of Revenue to pay the 22.8 costs of collection and administration of the clean water fees 22.9 imposed in Minnesota Statutes, section 114D.40. 22.10 Subd. 3. [POLLUTION CONTROL AGENCY.] The following amounts 22.11 are appropriated to the Pollution Control Agency for the 22.12 purposes stated: 22.13 (1) $1,000,000 in fiscal year 2006 is to assist counties in 22.14 developing the list required under Minnesota Statutes, section 22.15 114D.40, subdivision 4, paragraph (e), of persons subject to 22.16 clean water fees under Minnesota Statutes, section 114D.40, 22.17 subdivision 3, paragraphs (f) and (g); 22.18 (2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal 22.19 year 2007 are for statewide assessment of surface water quality 22.20 and trends; of these amounts, up to $1,474,000 in fiscal year 22.21 2006 and $3,256,600 in fiscal year 2007 are available for grants 22.22 or contracts to support citizen monitoring of surface waters; 22.23 and 22.24 (3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal 22.25 year 2007 are to develop TMDL's for waters listed on the United 22.26 States Environmental Protection Agency approved 2004 impaired 22.27 waters list; of this appropriation, up to $384,950 in fiscal 22.28 year 2006 and $1,118,750 in fiscal year 2007 are available for 22.29 grants or contracts to develop TMDL's. 22.30 Subd. 4. [AGRICULTURE DEPARTMENT.] The following amounts 22.31 are appropriated to the Department of Agriculture for the 22.32 purposes stated: 22.33 (1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal 22.34 year 2007 are for agricultural best management practices 22.35 low-interest loans to producers and rural landowners; of these 22.36 amounts, $200,000 in fiscal year 2006 and $2,100,000 in fiscal 23.1 year 2007 are available for pass-through to local governments 23.2 and lenders for low-interest loans; 23.3 (2) $350,000 in fiscal year 2006 and $800,000 in fiscal 23.4 year 2007 are to expand technical assistance to producers and 23.5 conservation professionals on nutrient and pasture management; 23.6 target practices to sources of water impairments; coordinate 23.7 federal and state farm conservation programs to fully utilize 23.8 federal conservation funds; and expand conservation planning 23.9 assistance for producers; of these amounts, $50,000 in fiscal 23.10 year 2006 and $210,000 in fiscal year 2007 are available for 23.11 grants or contracts to develop nutrient and conservation 23.12 planning assistance information materials; and 23.13 (3) $100,000 in fiscal year 2006 and $800,000 in fiscal 23.14 year 2007 are for research, evaluation, and effectiveness 23.15 monitoring of agricultural practices in restoring impaired 23.16 waters; of these amounts, $600,000 in fiscal year 2007 is 23.17 available for grants or contracts for research, evaluations, and 23.18 effectiveness monitoring of agricultural practices in restoring 23.19 impaired waters, including on-farm demonstrations. 23.20 Subd. 5. [BOARD OF WATER AND SOIL RESOURCES.] The 23.21 following amounts are appropriated to the Board of Water and 23.22 Soil Resources for restoration and prevention actions as 23.23 described in Minnesota Statutes, section 114D.20, subdivisions 6 23.24 and 7: 23.25 (1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal 23.26 year 2007 are for targeted nonpoint restoration cost-share and 23.27 incentive payments; of these amounts, up to $450,000 in fiscal 23.28 year 2006 and $5,450,000 in fiscal year 2007 are available for 23.29 grants to soil and water conservation districts through the 23.30 state cost-share program authorized under Minnesota Statutes, 23.31 section 103C.501; 23.32 (2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal 23.33 year 2007 are for targeted nonpoint restoration technical and 23.34 engineering assistance activities; of these amounts, up to 23.35 $412,000 in fiscal year 2006 and $3,250,000 in fiscal year 2007 23.36 are available for grants to soil and water conservation 24.1 districts, watershed management organizations, or counties to 24.2 support nonpoint restoration implementation activities; 24.3 (3) $200,000 in fiscal year 2007 is for reporting and 24.4 evaluation of applied soil and water conservation practices; 24.5 (4) $2,400,000 in fiscal year 2007 is for grants to 24.6 counties for implementation of county individual sewage 24.7 treatment systems programs through the local water resources 24.8 protection and management program under Minnesota Statutes, 24.9 section 103B.3369; 24.10 (5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal 24.11 year 2007 are for base and challenge grants to support nonpoint 24.12 source protection activities related to lake and river 24.13 protection and management through the local water resources 24.14 protection and management program under Minnesota Statutes, 24.15 section 103B.3369; and 24.16 (6) $2,400,000 in fiscal year 2007 is for grants to soil 24.17 and water conservation districts for streambank, stream channel, 24.18 lakeshore, and roadside protection and restoration projects 24.19 through the state-cost share program under Minnesota Statutes, 24.20 section 103C.501. 24.21 Subd. 6. [DEPARTMENT OF NATURAL RESOURCES.] The following 24.22 amounts are appropriated to the Department of Natural Resources 24.23 for the purposes stated: 24.24 (1) $280,000 in fiscal year 2006 and $430,000 in fiscal 24.25 year 2007 are for statewide assessment of surface water quality 24.26 and trends; and 24.27 (2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal 24.28 year 2007 are for restoration of impaired waters and actions to 24.29 prevent waters from becoming impaired; of these amounts, up to 24.30 $1,700,000 in fiscal year 2007 is available for grants and 24.31 contracts for forest stewardship planning and implementation, 24.32 and for research and monitoring. 24.33 Subd. 7. [PUBLIC FACILITIES AUTHORITY.] $4,400,000 in 24.34 fiscal year 2006 and $44,015,000 in fiscal year 2007 are 24.35 appropriated to the Public Facilities Authority; of these 24.36 amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in 25.1 fiscal year 2007 are to the clean water legacy capital 25.2 improvements fund for grants under Minnesota Statutes, section 25.3 446A.073; $4,582,000 in fiscal year 2007 is to the small 25.4 community wastewater treatment fund for loans under Minnesota 25.5 Statutes, section 446A.074; and $22,433,000 in fiscal year 2007 25.6 is to the water pollution control revolving fund under Minnesota 25.7 Statutes, section 446.07, for wastewater treatment and 25.8 stormwater projects. Funds appropriated under this subdivision 25.9 do not cancel and are available until expended. 25.10 Sec. 13. [EFFECTIVE DATE.] 25.11 Sections 1 to 11 are effective the day following final 25.12 enactment. Section 12 is effective July 1, 2005.