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SF 1050

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to the environment; creating the Clean Water
Legacy Act; providing authority, direction, and
funding to achieve and maintain water quality
standards for Minnesota's surface waters in accordance
with section 303(d) of the federal Clean Water Act;
appropriating money; proposing coding for new law in
Minnesota Statutes chapter 446A; proposing coding for
new law as Minnesota Statutes, chapter 114D.

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

Section 1.

new text begin [114D.05] CITATION.
new text end

new text begin This chapter may be cited as the "Clean Water Legacy Act."
new text end

Sec. 2.

new text begin [114D.10] LEGISLATIVE PURPOSE AND FINDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the Clean Water
Legacy Act is to protect, restore, and preserve the quality of
Minnesota's surface waters by providing authority, direction,
and resources to achieve and maintain water quality standards
for surface waters as required by section 303(d) of the federal
Clean Water Act, United States Code, title 42, section 1313(d),
and applicable federal regulations.
new text end

new text begin Subd. 2. new text end

new text begin Findings. new text end

new text begin The legislature finds that:
new text end

new text begin (1) there is a close link between protecting, restoring,
and preserving the quality of Minnesota's surface waters and the
ability to develop the state's economy, enhance its quality of
life, and protect its human and natural resources;
new text end

new text begin (2) achieving the state's water quality goals will require
long-term commitment and cooperation by all state and local
agencies, and other public and private organizations and
individuals, with responsibility and authority for water
management, planning, and protection; and
new text end

new text begin (3) all persons and organizations whose activities affect
the quality of waters, including point and nonpoint sources of
pollution, have a responsibility to participate in and support
efforts to achieve the state's water quality goals.
new text end

Sec. 3.

new text begin [114D.15] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions provided in
this section apply to the terms used in this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Citizen monitoring. new text end

new text begin "Citizen monitoring" means
monitoring of surface water quality by individuals and
nongovernmental organizations that is consistent with Pollution
Control Agency guidance on monitoring procedures, quality
assurance protocols, and data management.
new text end

new text begin Subd. 3. new text end

new text begin Clean water council. new text end

new text begin "Clean Water Council" or
"council" means the Clean Water Council created pursuant to
section 114D.30, subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin Federal tmdl requirements. new text end

new text begin "Federal TMDL
requirements" means the requirements of section 303(d) of the
Clean Water Act, United States Code, title 42, section 1313(d),
and associated regulations and guidance.
new text end

new text begin Subd. 5. new text end

new text begin Impaired water. new text end

new text begin "Impaired water" means surface
water that does not meet applicable water quality standards.
new text end

new text begin Subd. 6. new text end

new text begin Public agencies. new text end

new text begin "Public agencies" means all
state agencies, political subdivisions, and other public
organizations, with authority, responsibility, or expertise in
protecting, restoring, or preserving the quality of surface
waters, managing or planning for surface waters and related
lands, or financing waters-related projects. "Public agencies"
includes counties, cities, towns, joint powers organizations and
special purpose units of government, and the University of
Minnesota and other public education institutions.
new text end

new text begin Subd. 7. new text end

new text begin Restoration. new text end

new text begin "Restoration" means actions,
including effectiveness monitoring, that are taken to achieve
and maintain water quality standards for impaired waters in
accordance with a TMDL that has been approved by the United
States Environmental Protection Agency under federal TMDL
requirements.
new text end

new text begin Subd. 8. new text end

new text begin Surface waters. new text end

new text begin "Surface waters" means waters
of the state as defined in section 115.01, subdivision 22,
excluding groundwater as defined in section 115.01, subdivision
6.
new text end

new text begin Subd. 9. new text end

new text begin Third-party tmdl. new text end

new text begin "Third-party TMDL" means a
TMDL that is developed in whole or in part by a qualified public
or private entity other than the Pollution Control Agency
consistent with the goals, policies, and priorities in section
114D.20.
new text end

new text begin Subd. 10. new text end

new text begin Total maximum daily load or tmdl. new text end

new text begin "Total
maximum daily load" or "TMDL" means a calculation of the maximum
amount of a pollutant that may be introduced into a surface
water and still ensure that applicable water quality standards
for that water are achieved and maintained. A TMDL is the sum
of the pollutant load allocations for all sources of the
pollutant, including a wasteload allocation for point sources, a
load allocation for nonpoint sources and natural background, an
allocation for future growth of point and nonpoint sources, and
a margin of safety to account for uncertainty about the
relationship between pollutant loads and the quality of the
receiving surface water. "Natural background" means
characteristics of the water body resulting from the
multiplicity of factors in nature, including climate and
ecosystem dynamics, that affect the physical, chemical, or
biological conditions in a water body, but does not include
measurable and distinguishable pollution that is attributable to
human activity or influence. A TMDL must take into account
seasonal variations.
new text end

new text begin Subd. 11. new text end

new text begin Water quality standards. new text end

new text begin "Water quality
standards" for Minnesota surface waters are found in Minnesota
Rules, chapters 7050 and 7052.
new text end

Sec. 4.

new text begin [114D.20] IMPLEMENTATION; COORDINATION; GOALS;
POLICIES; AND PRIORITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Coordination and cooperation. new text end

new text begin In
implementing this chapter, public agencies shall take into
consideration the relevant provisions of local and other
applicable water management, conservation, land use, land
management, and development plans and programs. Public agencies
with authority for local water management, conservation, land
use, land management, and development plans shall take into
consideration the manner in which their plans affect the
implementation of this chapter. Public agencies shall identify
opportunities to participate and assist in the successful
implementation of this chapter, including the funding or
technical assistance needs, if any, that may be necessary. In
implementing this chapter, public agencies shall endeavor to
engage the cooperation of organizations and individuals whose
activities affect the quality of surface waters, including point
and nonpoint sources of pollution, and who have authority and
responsibility for water management, planning, and protection.
To the extent practicable, public agencies shall endeavor to
enter into formal and informal agreements and arrangements with
federal agencies and departments to jointly utilize staff and
resources to deliver programs or conduct activities to achieve
the intent of this chapter, including efforts under the federal
Clean Water Act and other federal farm and soil and water
conservation programs.
new text end

new text begin Subd. 2. new text end

new text begin Goals for implementation. new text end

new text begin The following goals
must guide the implementation of this chapter:
new text end

new text begin (1) to identify impaired waters in accordance with federal
TMDL requirements within ten years after the effective date of
this section and thereafter to ensure continuing evaluation of
surface waters for impairments;
new text end

new text begin (2) to submit TMDL's to the United States Environmental
Protection Agency for all impaired waters in a timely manner in
accordance with federal TMDL requirements;
new text end

new text begin (3) to set a reasonable time for implementing restoration
of each identified impaired water;
new text end

new text begin (4) to provide assistance and incentives to prevent waters
from becoming impaired and to improve the quality of waters
which are listed as impaired but have no approved TMDL
addressing the impairment; and
new text end

new text begin (5) to promptly seek the delisting of waters from the
impaired waters list when those waters are shown to achieve the
designated uses applicable to the waters.
new text end

new text begin Subd. 3. new text end

new text begin Implementation policies. new text end

new text begin The following policies
must guide the implementation of this chapter:
new text end

new text begin (1) develop regional and watershed TMDL's, and TMDL's for
multiple pollutants, where reasonable and feasible;
new text end

new text begin (2) maximize use of available organizational, technical,
and financial resources to perform sampling, monitoring, and
other activities to identify impaired waters, including use of
citizen monitoring;
new text end

new text begin (3) maximize opportunities for restoration of impaired
waters, by prioritizing and targeting of available programmatic,
financial, and technical resources and by providing additional
state resources to complement and leverage available resources;
new text end

new text begin (4) use existing regulatory authorities to achieve
restoration for point and nonpoint sources of pollution where
applicable, and promote the development and use of effective
nonregulatory measures to address pollution sources for which
regulations are not applicable;
new text end

new text begin (5) use restoration methods that have a demonstrated
effectiveness in reducing impairments and provide the greatest
long-term positive impact on water quality protection and
improvement while incorporating innovative approaches on a
case-by-case basis;
new text end

new text begin (6) identify for the legislature any innovative approaches
that may strengthen or complement existing programs; and
new text end

new text begin (7) identify and encourage implementation of measures to
prevent waters from becoming impaired and to improve the quality
of waters that are listed as impaired but have no approved TMDL
addressing the impairment.
new text end

new text begin Subd. 4. new text end

new text begin Priorities for identifying impaired waters. new text end

new text begin The
Pollution Control Agency, in accordance with federal TMDL
requirements, shall set priorities for identifying impaired
waters, giving consideration to:
new text end

new text begin (1) waters where impairments would pose the greatest
potential risk to human or aquatic health; and
new text end

new text begin (2) waters where data developed through public agency or
citizen monitoring or other means, provides evidence that an
impaired condition exists.
new text end

new text begin Subd. 5.new text end [PRIORITIES FOR PREPARATION OF TMDL'S.] new text begin The Clean
Water Council shall recommend priorities for scheduling and
preparing TMDL's taking into account the severity of the
impairment, the designated uses of those waters, and other
applicable federal TMDL requirements. In recommending
priorities, the council shall also give consideration to waters
and watersheds:
new text end

new text begin (1) with impairments that pose the greatest potential risk
to human health;
new text end

new text begin (2) with impairments that pose the greatest potential risk
to aquatic health;
new text end

new text begin (3) where other public agencies and participating
organizations and individuals, especially local, basinwide, or
regional agencies or organizations, have demonstrated readiness
to assist in carrying out the responsibilities, including
availability and organization of human, technical, and financial
resources necessary to undertake the work; and
new text end

new text begin (4) where there is demonstrated coordination and
cooperation among cities, counties, watershed districts, and
soil and water conservation districts in planning and
implementation of activities that will assist in carrying out
the responsibilities.
new text end

new text begin Subd. 6. new text end

new text begin Priorities for restoration of impaired
waters.
new text end

new text begin In implementing restoration of impaired waters, in
addition to the priority considerations in subdivision 5 the
Clean Water Council shall give priority in its recommendations
for restoration funding from the clean water legacy account to
restoration projects that:
new text end

new text begin (1) coordinate with and utilize existing local authorities
and infrastructure for implementation;
new text end

new text begin (2) can be implemented in whole or in part by providing
support for existing or ongoing restoration efforts; and
new text end

new text begin (3) most effectively leverage other sources of restoration
funding, including federal, state, local, and private sources of
funds; and
new text end

new text begin (4) show a high potential for early restoration and
delisting based upon data developed through public agency or
citizen monitoring or other means.
new text end

new text begin Subd. 7. new text end

new text begin Priorities for funding prevention actions. new text end

new text begin The
Clean Water Council shall apply the priorities applicable under
subdivision 6, as far as practicable, when recommending
priorities for funding actions to prevent waters from becoming
impaired and to improve the quality of waters which are listed
as impaired but have no approved TMDL.
new text end

Sec. 5.

new text begin [114D.25] ADMINISTRATION; POLLUTION CONTROL
AGENCY.
new text end

new text begin Subdivision 1. new text end

new text begin General duties and authorities. new text end

new text begin The
Pollution Control Agency, in accordance with federal TMDL
requirements, shall: identify impaired waters and propose a
list of the waters for review and approval by the United States
Environmental Protection Agency; develop and approve TMDL's for
listed impaired waters and submit the approved TMDL's to the
United State Environmental Protection Agency for final approval;
and propose to delist waters from the Environmental Protection
Agency impaired waters list.
new text end

new text begin Subd. 2. new text end

new text begin Administrative procedures for tmdl
approval.
new text end

new text begin The approval of a TMDL by the Pollution Control
Agency must be considered a final decision of the agency, and is
subject to the contested case procedures of sections 14.57 to
14.62, and to judicial review under sections 14.63 to 14.69. A
TMDL is not subject to the rulemaking requirements of chapter
14, including section 14.386.
new text end

new text begin Subd. 3. new text end

new text begin Third-party tmdl development. new text end

new text begin The Pollution
Control Agency may enter agreements with any qualified public or
private entity setting forth the terms and conditions under
which that entity is authorized to develop a third-party TMDL.
In determining whether an entity is qualified to develop a
third-party TMDL, the agency shall consider the technical and
administrative qualifications of the entity and any potential
conflict of interest of the entity with respect to the
development of the third-party TMDL. A third-party TMDL is
subject to modification and approval by the Pollution Control
Agency, and must be approved by the Pollution Control Agency
before it is submitted to the United States Environmental
Protection Agency. The Pollution Control Agency shall consider
authorizing the development of third-party TMDL's consistent
with the goals, policies, and priorities determined under
section 116.384.
new text end

Sec. 6.

new text begin [114D.30] CLEAN WATER COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; duties. new text end

new text begin A Clean Water Council
is created to advise on the administration and implementation of
this chapter, and foster coordination and cooperation as
described in section 114D.20, subdivision 1. The council may
also advise on the development of appropriate processes for
expert scientific review as described in section 114D.35,
subdivision 2. The Pollution Control Agency shall provide
administrative support for the council with the support of other
member agencies. The members of the council shall elect a chair
from the nonagency members of the council.
new text end

new text begin Subd. 2. new text end

new text begin Membership; appointment. new text end

new text begin The commissioners of
natural resources, agriculture, and the Pollution Control
Agency, and the executive director of the Board of Water and
Soil Resources are the appointing authorities for the council.
Each appointing authority shall appoint one person from their
respective agency to serve as a member of the council. The
appointing authorities, acting jointly, shall appoint 13
additional nonagency members of the council as follows:
new text end

new text begin (1) two members representing statewide farm organizations;
new text end

new text begin (2) two members representing business organizations;
new text end

new text begin (3) two members representing environmental organizations;
new text end

new text begin (4) one member representing soil and water conservation
districts;
new text end

new text begin (5) one member representing watershed districts;
new text end

new text begin (6) one member representing organizations focused on
improvement of Minnesota lakes or streams;
new text end

new text begin (7) one member representing an organization of county
governments;
new text end

new text begin (8) two members representing organizations of city
governments; and
new text end

new text begin (9) one member representing the Metropolitan Council
established under section 473.123.
new text end

new text begin Subd. 3. new text end

new text begin Terms; compensation; removal. new text end

new text begin The initial terms
of members representing state agencies and the Metropolitan
Council expire on the first Monday in January, 2007.
Thereafter, the terms of members representing the state agencies
and the Metropolitan Council are four years and are coterminous
with the governor. The terms of other members of the council
shall be as provided in section 15.059, subdivision 2. Members
may serve until their successors are appointed and qualify.
Compensation and removal of council members is as provided in
section 15.059, subdivisions 3 and 4. A vacancy on the council
may be filled by the appointing authority provided in
subdivision 1 for the remainder of the unexpired term.
new text end

new text begin Subd. 4. new text end

new text begin Implementation plan. new text end

new text begin The Clean Water Council
shall prepare a plan for implementation of this chapter. The
plan shall address general procedures and timeframes for
implementing this chapter, and shall include a more specific
implementation work plan for the next fiscal biennium and a
framework for setting priorities to address impaired waters
consistent with section 114D.45, subdivisions 2 to 7. The
council shall issue the first implementation plan under this
subdivision by December 1, 2005, and shall issue a revised work
plan by December 1 of each even-numbered year thereafter.
new text end

new text begin Subd. 5. new text end

new text begin Recommendations on appropriation of funds. new text end

new text begin The
Clean Water Council shall recommend to the governor the manner
in which money from the clean water legacy account should be
appropriated for the purposes identified in section 114D.45,
subdivision 3. The council's recommendations must be consistent
with the purposes, policies, goals, and priorities in sections
114D.05 to 114D.35, and shall allocate adequate support and
resources to identify impaired waters, develop TMDL's, implement
restoration of impaired waters, and provide assistance and
incentives to prevent waters from becoming impaired and improve
the quality of waters which are listed as impaired but have no
approved TMDL.
new text end

new text begin Subd. 6. new text end

new text begin Biennial report to legislature. new text end

new text begin By December 1
of each even-numbered year, the council shall submit a report to
the legislature on the activities for which money from the clean
water legacy account has been or will be spent for the current
biennium, and the activities for which money from the account is
recommended to be spent in the next biennium. The report due on
December 1, 2014, must include an evaluation of the progress
made through June 30, 2014, in implementing this chapter, the
need for funding of future implementation of those sections, and
recommendations for the sources of such funding.
new text end

Sec. 7.

new text begin [114D.35] PUBLIC AND STAKEHOLDER PARTICIPATION;
SCIENTIFIC REVIEW; EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Public and stakeholder participation.
new text end

new text begin Public agencies involved in the implementation of this chapter
shall encourage participation by the public and stakeholders,
including local citizens, land owners and managers, and public
and private organizations, in the identification of impaired
waters, in developing TMDL's, and in planning and implementing
restoration of impaired waters. In particular, the Pollution
Control Agency shall make reasonable efforts to provide timely
information to the public and to stakeholders about impaired
waters that have been identified by the agency. The agency
shall seek broad and early public and stakeholder participation
in scoping the activities necessary to develop a TMDL, including
the scientific models, methods, and approaches to be used in
TMDL development, and to implement restoration pursuant to
section 114D.15, subdivision 7.
new text end

new text begin Subd. 2. new text end

new text begin Expert scientific advice. new text end

new text begin The Clean Water
Council and public agencies shall make use of available
expertise from educational, research, and technical
organizations, including the University of Minnesota and other
higher education institutions, to provide appropriate
independent expert advice on models, methods, and approaches
used in identifying impaired waters, developing TMDL's, and
implementing prevention and restoration.
new text end

new text begin Subd. 3. new text end

new text begin Education. new text end

new text begin The Clean Water Council shall
develop strategies for informing, educating, and encouraging the
participation of citizens, stakeholders, and others regarding
the identification of impaired waters, development of TMDL's,
and development and implementation of restoration for impaired
waters. Public agencies shall be responsible for implementing
the strategies.
new text end

Sec. 8.

new text begin [114D.40] CLEAN WATER FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this
subdivision apply to the terms used in this section.
new text end

new text begin (b) "Average daily discharge or application limitation"
means the highest allowable average of daily discharge or land
application during a calendar day or any 24-hour period that
reasonably represents the discharge during the calendar day for
the purposes of sampling, calculated as the sum of all daily
discharges or land applications measured during a day, divided
by the number of daily discharges or land applications during
that day.
new text end

new text begin (c) "Effluent flow" means the flow of domestic wastewater
from a residential dwelling or nonresidential establishment.
The rate of water usage by a residential dwelling or
nonresidential establishment must be substituted for the
effluent flow if effluent flow from the residential dwelling or
nonresidential establishment is not measured.
new text end

new text begin (d) "Fee collection authorities" means counties, the
Pollution Control Agency, and public agencies with authority to
collect fees and charges for sewer services provided by a
publicly owned treatment works.
new text end

new text begin (e) "Individual sewage treatment system" means a sewage
treatment system, or part thereof, that is regulated by the
state or its political subdivisions, and which serves a
residential dwelling, or nonresidential establishment, or group
thereof, using sewage tanks followed by soil treatment and
disposal or using advanced treatment devices that discharge
below final grade. "Individual sewage treatment system" also
includes sewage holding tanks and privies.
new text end

new text begin (f) "Nonresidential establishment" means a structure or
portion of a structure that is not a residential dwelling.
new text end

new text begin (g) "Publicly owned treatment works" means a device or
system used in the treatment, recycling, or reclamation of
municipal sewage or liquid industrial waste that is owned by the
state, a political subdivision, sanitary district, or other
public organization established under state law and which relies
primarily on wastewater treatment systems other than individual
sewage treatment systems.
new text end

new text begin (h) "Residential dwelling" means a room or group of rooms
used by an individual, family, or other group as living quarters
which includes facilities for sleeping, eating, cooking, and
sanitation. "Residential dwelling" includes apartments,
condominiums, cooperatives, attached and detached dwellings,
mobile homes, seasonal or recreational dwellings, or a dwelling
in which a resident of that dwelling engages in a business or
employment. A farm that includes buildings is treated as a
residential dwelling. "Residential dwelling" does not include:
new text end

new text begin (1) hotels, motels, resorts, boarding houses, clubs,
hospitals, nursing homes, dormitories, schools, colleges, or
similar institutional or transient facility; or
new text end

new text begin (2) any residential dwelling containing not more than two
residential dwelling units which receive a single bill for sewer
services with one or more nonresidential establishments.
new text end

new text begin Subd. 2. new text end

new text begin Assessment of clean water fees. new text end

new text begin A clean water
fee is imposed as provided in subdivision 3 on all discharges of
domestic and industrial wastewater to sanitary sewer systems;
wastewater treatment plants, facilities, or systems; individual
sewage treatment systems; and other systems.
new text end

new text begin Subd. 3. new text end

new text begin Fee amounts. new text end

new text begin (a) The amounts of the clean water
fees imposed under this section are as provided in this
subdivision.
new text end

new text begin (b) For discharges to sanitary sewer systems served by a
publicly owned treatment works, the clean water fees are as
follows:
new text end

new text begin (1) for each residential dwelling that receives a separate
bill for service and contains not more than two residential
dwelling units, $36 per year;
new text end

new text begin (2) for a structure that contains more than two residential
dwelling units that do not receive separate bills for service,
clean water fees must be calculated as follows:
new text end

new text begin (i) $36 per year for each residential dwelling unit in the
structure; and
new text end

new text begin (ii) any nonresidential establishment which is billed
together with the residential dwelling units is subject to a
clean water fee on that portion of the effluent flow for the
structure that is attributable to that nonresidential
establishment, and the fee must be calculated based on effluent
flows as provided in clause (3); and
new text end

new text begin (3) for each nonresidential establishment that receives a
separate bill for service, the fee is as follows:
new text end

new text begin (i) if average effluent flow is less than 10,000 gallons
per day, $120 per year;
new text end

new text begin (ii) if average effluent flow is 10,000 gallons per day or
greater, but less than 100,000 gallons per day, $300 per year;
and
new text end

new text begin (iii) if average effluent flow is 100,000 gallons per day
or greater, $600 per year.
new text end

new text begin (c) Except as provided in paragraph (d), for discharges
from wastewater treatment facilities, other than publicly owned
treatment works, which are required to obtain a national
pollution discharge elimination system or state disposal system
permit, the fee is as follows:
new text end

new text begin (1) for permits authorizing an average daily discharge or
land application limitation of less than 10,000 gallons on an
annualized basis, $120 per year;
new text end

new text begin (2) for permits authorizing an average daily discharge or
land application limitation of 10,000 gallons per day or
greater, but less than 100,000 gallons per day, $300 per year;
and
new text end

new text begin (3) for permits authorizing an average daily discharge or
land application limitation of 100,000 gallons per day or
greater, $600 per year.
new text end

new text begin (d) A clean water fee must not be imposed under paragraph
(c), on discharges from a facility that operates under a general
permit issued by the agency.
new text end

new text begin (e) For discharges to domestic wastewater treatment systems
permitted by the Pollution Control Agency, excluding publicly
owned treatment works, the fee is $36 per year for each
residential dwelling and nonresidential establishment that
discharges to the systems. No single residential unit or
nonresidential establishment may be required to pay more than
one clean water fee under this paragraph.
new text end

new text begin (f) For individual sewage treatment systems not permitted
by the Pollution Control Agency, the fee is $36 per year for
each residential dwelling and nonresidential establishment
served by the system. No single residential unit or
nonresidential establishment may be required to pay more than
one clean water fee under this paragraph.
new text end

new text begin (g) For any wastewater system not described in paragraphs
(b) to (f), that accepts and discharges untreated or partially
treated wastewater, the fee is $36 per year for each residential
dwelling and nonresidential establishment that discharges to the
system.
new text end

new text begin (h) Any single residential unit or nonresidential
establishment that would be subject to payment of a clean water
fee under both paragraphs (f) and (g) may only be required to
pay the clean water fee under paragraph (e).
new text end

new text begin Subd. 4. new text end

new text begin Collection and enforcement. new text end

new text begin (a) Fees imposed on
discharges to sanitary sewer systems served by publicly owned
treatment works must be collected by the public agency that
collects fees or charges from the users of that service. The
fees must be collected at the same time and with the same
frequency as fees or charges for service are collected. The
collecting entity may enforce payment of the fees using the same
enforcement authority applicable to sewer service charges.
new text end

new text begin (b) Fees imposed under subdivision 3, paragraphs (c) and
(e), must be collected by the Pollution Control Agency from the
permittees for the facilities or systems. The Pollution Control
Agency may enforce payment of the fees using the same
enforcement authority applicable to permit fees.
new text end

new text begin (c) Fees imposed under subdivision 3, paragraphs (f) and
(g), must be collected by each county, from the owners of the
residential dwellings or nonresidential establishments subject
to the fee that are located in the county. The counties shall
collect the fees at least once per calendar year, but may
collect the fees more frequently. If fees are collected
annually, the counties shall require payment of the fees by not
later than February 1 following the calendar year for which the
fee is imposed. The counties shall determine that manner in
which the fees are collected. Each county shall enact and
enforce an appropriate ordinance to enforce payment of the fees.
new text end

new text begin (d) By August 15, 2005, the counties shall identify and
develop a list of all persons subject to the fees under
subdivision 3, paragraphs (f) and (g), located in that county.
The counties shall annually update the list by August 15 of each
year.
new text end

new text begin (e) The fee collection authorities shall exempt a person
from payment of the clean water fee for a discharge of
wastewater from a residential dwelling if the fee collection
authority determines that the person meets any of the criteria
for eligibility under the telephone assistance plan established
under section 237.70, or that the person is receiving telephone
assistance under that plan. The Pollution Control Agency shall
create a form that fee collection authorities shall use to
determine eligibility for exemption under this paragraph.
new text end

new text begin (f) Any statement, invoice, or other document used to
collect the fees under this subdivision must clearly identify
the fee as the "Minnesota Clean Water Fee."
new text end

new text begin Subd. 5. new text end

new text begin Payment to commissioner of revenue; deposit. new text end

new text begin (a)
The fee collection authorities shall remit all fees collected
under this section, less the costs to collect the fees, not to
exceed five percent of the total collected, to the commissioner
of revenue. The fees must be remitted in a manner prescribed by
the commissioner. Amounts collected during the previous
calendar quarter must be remitted to the commissioner on April
30, July 31, October 31, and January 31. In addition to the
costs of collecting the fees, the fee collection authorities may
retain from fees collected for calendar year 2006 the costs to
develop methods and procedures for collecting the clean water
fees.
new text end

new text begin (b) The commissioner of revenue shall deposit all clean
water fees remitted by the fee collection authorities in the
clean water legacy account.
new text end

new text begin (c) The assessment, audit, refund, penalty, interest,
enforcement, collection remedies, appeal, and administrative
provisions of chapters 270 and 289A that are applicable to fees
imposed under chapter 297A apply to the fees imposed by this
section.
new text end

new text begin Subd. 6. new text end

new text begin Effective date; repealer. new text end

new text begin The fees imposed by
this section are effective and collection must begin for the
year beginning January 1, 2006. This section is repealed on
December 31, 2015.
new text end

Sec. 9.

new text begin [114D.45] CLEAN WATER LEGACY ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The clean water legacy account
is created as an account in the environmental fund. Money in
the account must be made available for the implementation of
this chapter and sections 446A.073 and 446A.074, without
supplanting or taking the place of any other funds which are
currently available or may become available from any other
source, whether federal, state, local, or private, for
implementation of those sections.
new text end

new text begin Subd. 2. new text end

new text begin Sources of revenue. new text end

new text begin The following revenues must
be deposited in the clean water legacy account:
new text end

new text begin (1) the revenue from the clean water fees collected under
section 114D.40; and
new text end

new text begin (2) interest accrued on the account.
new text end

new text begin Subd. 3. new text end

new text begin Uses of account. new text end

new text begin Subject to appropriation by
the legislature, the clean water legacy account may be used for
the following purposes:
new text end

new text begin (1) to provide grants, loans, and technical assistance to
public agencies and others who are participating in the process
of identifying impaired waters, developing TMDL's, implementing
restoration plans for impaired waters, and monitoring the
effectiveness of restoration;
new text end

new text begin (2) to support measures to prevent waters from becoming
impaired and to improve the quality of waters that are listed as
impaired but have no approved TMDL addressing the impairment;
new text end

new text begin (3) to provide grants and loans for wastewater and
stormwater treatment projects through the Public Facilities
Authority;
new text end

new text begin (4) to support the efforts of public agencies associated
with individual sewage treatment systems and financial
assistance for upgrading and replacing the systems; and
new text end

new text begin (5) to provide funds to state agencies to carry out their
responsibilities under this chapter.
new text end

Sec. 10.

new text begin [446A.073] CLEAN WATER LEGACY PHOSPHORUS
REDUCTION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin The authority shall
establish a clean water legacy capital improvement fund and
shall make grants from the fund as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The authority shall award grants from
the clean water legacy capital improvement fund to governmental
units for the capital costs of wastewater treatment facility
projects or a portion thereof that will reduce the discharge of
total phosphorus from the facility to one milligram per liter or
less. A project is eligible for a grant if it meets the
following requirements:
new text end

new text begin (1) the applicable phosphorus discharge limit is
incorporated in a permit issued by the agency for the wastewater
treatment facility on or after March 28, 2000, or the grantee
agrees to comply with the applicable limit as a condition of
receiving the grant;
new text end

new text begin (2) the governmental unit has submitted a facilities plan
for the project to the agency and a grant application to the
authority on a form prescribed by the authority; and
new text end

new text begin (3) the agency has approved the application and facilities
plan, and certified the eligible costs for the project to the
authority.
new text end

new text begin Subd. 3. new text end

new text begin Eligible capital costs. new text end

new text begin Eligible capital costs
for phosphorus reduction grants under subdivision 4, paragraph
(a), include the as-bid construction costs and engineering
planning and design costs. Eligible capital costs for
phosphorus reduction grants under subdivision 4, paragraph (b),
include the final, incurred construction, engineering, planning,
and design costs.
new text end

new text begin Subd. 4. new text end

new text begin Grant amounts and priorities. new text end

new text begin (a) Priority must
be given to projects that start construction on or after July 1,
2005. If a facility's plan for a project is approved by the
agency before July 1, 2009, the amount of the grant is 75
percent of the eligible capital cost of the project. If a
facility's plan for a project is approved by the agency on or
after July 1, 2009, the amount of the grant is 50 percent of the
eligible capital cost of the project. Priority in awarding
grants under this paragraph must be based on the date of
approval of the facility's plan for the project.
new text end

new text begin (b) Projects that meet the eligibility requirements in
subdivision 2 and have started construction before July 1, 2005,
are eligible for grants to reimburse up to 75 percent of the
eligible capital cost of the project, less any amounts
previously received in grants from other sources. Application
for a grant under this paragraph must be submitted to the agency
no later than June 30, 2007. Priority for award of grants under
this paragraph must be based on the date of agency approval of
the application for the grant.
new text end

new text begin (c) In each fiscal year that money is available for grants,
the authority shall first award grants under paragraph (a) to
projects that met the eligibility requirements of subdivision 2
by May 1 of that year. The authority shall use any remaining
money available that year to award grants under paragraph (b).
Grants that have been approved but not awarded in a previous
fiscal year carry over and must be awarded in subsequent fiscal
years in accordance with the priorities in this paragraph.
new text end

new text begin (d) Disbursements of grants under this section by the
authority to recipients must be made for eligible project costs
as incurred by the recipients, and must be made by the authority
in accordance with the project financing agreement and
applicable state law.
new text end

new text begin Subd. 5. new text end

new text begin Fees. new text end

new text begin The authority may charge the grant
recipient a fee for its administrative costs not to exceed
one-half of one percent of the grant amount, to be paid upon
execution of the grant agreement.
new text end

Sec. 11.

new text begin [446A.074] COMMUNITY SEPTIC SYSTEM LOAN
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin The authority shall
establish a community septic system replacement fund and shall
make loans from the fund as provided in this section. Money in
the fund is annually appropriated to the authority and does not
lapse. The fund shall be credited with all loan repayments and
investment income from the fund, and servicing fees assessed
under section 446A.04, subdivision 5. The authority shall
manage and administer the community septic system replacement
fund and, for these purposes, may exercise all powers provided
in this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Loans. new text end

new text begin The authority shall award loans to
governmental units from the community septic system replacement
fund for projects to replace failing or inadequate individual
sewage treatment systems with new individual sewage treatment
systems. A governmental unit receiving a loan from the fund
shall own the individual sewage treatment systems built under
the program and shall be responsible, either directly or through
a contract with a private vendor, for all inspections,
maintenance, and repairs necessary to assure proper operation of
the systems.
new text end

new text begin Subd. 3. new text end

new text begin Project priority list. new text end

new text begin Governmental units
seeking loans from the community septic system loan program
shall first submit a project proposal to the agency. A project
proposal must include an identification and description of the
condition of all individual sewage treatment systems in the
project area. The agency shall rank project proposals on its
project priority list used for the water pollution control
revolving fund under section 446A.07.
new text end

new text begin Subd. 4. new text end

new text begin Loan applications. new text end

new text begin Governmental units with
projects on the project priority list shall submit applications
to the authority on forms prescribed by the authority. The
application must include:
new text end

new text begin (1) a list of the individual sewage treatment systems
proposed to be replaced over a period of up to three years;
new text end

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

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

new text begin (4) a management plan providing for the inspection,
maintenance, and repairs necessary to assure proper operation of
the systems.
new text end

new text begin Subd. 5. new text end

new text begin Loan awards. new text end

new text begin The authority shall award loans to
governmental units with approved loan applications based on
their ranking on the agency's project priority list. The loan
amount must be based on the estimated project costs for the
portion of the project expected to be completed within one year,
up to an annual maximum of $500,000. For projects expected to
take more than one year to complete, the authority may make a
multiyear commitment for a period not to exceed three years,
contingent on the future availability of funds. Each year of a
multiyear commitment must be funded by a separate loan agreement
meeting the terms and conditions in subdivision 6. A
governmental unit receiving a loan under a multiyear commitment
has priority for additional loan funds in subsequent years.
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
community septic system replacement fund 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 carry an interest rate of one percent and
must be fully amortized within ten years of the first scheduled
payment;
new text end

new text begin (3) a governmental unit 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; and
new text end

new text begin (4) each property owner to be served by an individual
sewage treatment system under this program must provide a
permanent easement to the governmental unit to allow access to
the system for inspections, maintenance, and repairs.
new text end

new text begin Subd. 7. new text end

new text begin Special assessment deferral. new text end

new text begin (a) A governmental
unit that receives a loan under this section, and levies special
assessments to repay the loan, may defer payment of the
assessments under sections 435.193 to 435.195.
new text end

new text begin (b) A governmental unit that defers payment of special
assessments for one or more properties under paragraph (a) may
request deferral of that portion of the debt service on its
loan, and the authority shall accept appropriate amendments to
the general obligation note of the governmental unit. If
special assessment payments are later received from properties
that received a deferral, the funds received must be paid to the
authority with the next scheduled loan payment.
new text end

new text begin Subd. 8. new text end

new text begin Eligible costs. new text end

new text begin Eligible costs for community
septic system loans include the costs of planning, design,
construction, legal fees, administration, and land acquisition.
new text end

new text begin Subd. 9. 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. 10. new text end

new text begin Audits. new text end

new text begin A governmental unit 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 governmental unit is not required to prepare an
independent audit, a copy of the annual financial reporting form
it provides to the state auditor.
new text end

Sec. 12. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin General provisions. new text end

new text begin The appropriations in
this section are from the environmental fund and are available
for the fiscal years ending June 30, 2006, and June 30, 2007.
Unless otherwise specified in this section, these appropriations
do not cancel and remain available until June 30, 2007.
Appropriations in this section that are encumbered under
contract, including grant contract, on or before June 30, 2007,
are available until June 30, 2009.
new text end

new text begin Subd. 2. new text end

new text begin Department of revenue; fee collection
costs.
new text end

new text begin $38,000 in fiscal year 2006 and $31,000 in fiscal year
2007 are appropriated to the Department of Revenue to pay the
costs of collection and administration of the clean water fees
imposed in Minnesota Statutes, section 114D.40.
new text end

new text begin Subd. 3. new text end

new text begin Pollution control agency. new text end

new text begin The following amounts
are appropriated to the Pollution Control Agency for the
purposes stated:
new text end

new text begin (1) $1,000,000 in fiscal year 2006 is to assist counties in
developing the list required under Minnesota Statutes, section
114D.40, subdivision 4, paragraph (e), of persons subject to
clean water fees under Minnesota Statutes, section 114D.40,
subdivision 3, paragraphs (f) and (g);
new text end

new text begin (2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal
year 2007 are for statewide assessment of surface water quality
and trends; of these amounts, up to $1,474,000 in fiscal year
2006 and $3,256,600 in fiscal year 2007 are available for grants
or contracts to support citizen monitoring of surface waters;
and
new text end

new text begin (3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal
year 2007 are to develop TMDL's for waters listed on the United
States Environmental Protection Agency approved 2004 impaired
waters list; of this appropriation, up to $384,950 in fiscal
year 2006 and $1,118,750 in fiscal year 2007 are available for
grants or contracts to develop TMDL's.
new text end

new text begin Subd. 4. new text end

new text begin Agriculture department. new text end

new text begin The following amounts
are appropriated to the Department of Agriculture for the
purposes stated:
new text end

new text begin (1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal
year 2007 are for agricultural best management practices
low-interest loans to producers and rural landowners; of these
amounts, $200,000 in fiscal year 2006 and $2,100,000 in fiscal
year 2007 are available for pass-through to local governments
and lenders for low-interest loans;
new text end

new text begin (2) $350,000 in fiscal year 2006 and $800,000 in fiscal
year 2007 are to expand technical assistance to producers and
conservation professionals on nutrient and pasture management;
target practices to sources of water impairments; coordinate
federal and state farm conservation programs to fully utilize
federal conservation funds; and expand conservation planning
assistance for producers; of these amounts, $50,000 in fiscal
year 2006 and $210,000 in fiscal year 2007 are available for
grants or contracts to develop nutrient and conservation
planning assistance information materials; and
new text end

new text begin (3) $100,000 in fiscal year 2006 and $800,000 in fiscal
year 2007 are for research, evaluation, and effectiveness
monitoring of agricultural practices in restoring impaired
waters; of these amounts, $600,000 in fiscal year 2007 is
available for grants or contracts for research, evaluations, and
effectiveness monitoring of agricultural practices in restoring
impaired waters, including on-farm demonstrations.
new text end

new text begin Subd. 5. new text end

new text begin Board of water and soil resources. new text end

new text begin The
following amounts are appropriated to the Board of Water and
Soil Resources for restoration and prevention actions as
described in Minnesota Statutes, section 114D.20, subdivisions 6
and 7:
new text end

new text begin (1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal
year 2007 are for targeted nonpoint restoration cost-share and
incentive payments; of these amounts, up to $450,000 in fiscal
year 2006 and $5,450,000 in fiscal year 2007 are available for
grants to soil and water conservation districts through the
state cost-share program authorized under Minnesota Statutes,
section 103C.501;
new text end

new text begin (2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal
year 2007 are for targeted nonpoint restoration technical and
engineering assistance activities; of these amounts, up to
$412,000 in fiscal year 2006 and $3,250,000 in fiscal year 2007
are available for grants to soil and water conservation
districts, watershed management organizations, or counties to
support nonpoint restoration implementation activities;
new text end

new text begin (3) $200,000 in fiscal year 2007 is for reporting and
evaluation of applied soil and water conservation practices;
new text end

new text begin (4) $2,400,000 in fiscal year 2007 is for grants to
counties for implementation of county individual sewage
treatment systems programs through the local water resources
protection and management program under Minnesota Statutes,
section 103B.3369;
new text end

new text begin (5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal
year 2007 are for base and challenge grants to support nonpoint
source protection activities related to lake and river
protection and management through the local water resources
protection and management program under Minnesota Statutes,
section 103B.3369; and
new text end

new text begin (6) $2,400,000 in fiscal year 2007 is for grants to soil
and water conservation districts for streambank, stream channel,
lakeshore, and roadside protection and restoration projects
through the state-cost share program under Minnesota Statutes,
section 103C.501.
new text end

new text begin Subd. 6. new text end

new text begin Department of natural resources. new text end

new text begin The following
amounts are appropriated to the Department of Natural Resources
for the purposes stated:
new text end

new text begin (1) $280,000 in fiscal year 2006 and $430,000 in fiscal
year 2007 are for statewide assessment of surface water quality
and trends; and
new text end

new text begin (2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal
year 2007 are for restoration of impaired waters and actions to
prevent waters from becoming impaired; of these amounts, up to
$1,700,000 in fiscal year 2007 is available for grants and
contracts for forest stewardship planning and implementation,
and for research and monitoring.
new text end

new text begin Subd. 7. new text end

new text begin Public facilities authority. new text end

new text begin $4,400,000 in
fiscal year 2006 and $44,015,000 in fiscal year 2007 are
appropriated to the Public Facilities Authority; of these
amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in
fiscal year 2007 are to the clean water legacy capital
improvements fund for grants under Minnesota Statutes, section
446A.073; $4,582,000 in fiscal year 2007 is to the community
septic system replacement fund for loans under Minnesota
Statutes, section 446A.074; and $22,433,000 in fiscal year 2007
is to the water pollution control revolving fund under Minnesota
Statutes, section 446.07, for wastewater treatment and
stormwater projects. Funds appropriated under this subdivision
do not cancel and are available until expended.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 11 are effective the day following final
enactment. Section 12 is effective July 1, 2005.
new text end