SF 1515

as introduced - 89th Legislature (2015 - 2016) Posted on 09/16/2015 11:40am

A bill for an act
relating to natural resources; modifying Wetland Conservation Act; requiring
rulemaking; requiring a report; appropriating money; amending Minnesota
Statutes 2014, sections 103B.101, by adding a subdivision; 103B.3355;
103F.612, subdivision 2; 103G.005, by adding a subdivision; 103G.222,
subdivisions 1, 3; 103G.2242, subdivisions 1, 2, 3, 4, 12, 14; 103G.2251.

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

Section 1.

Minnesota Statutes 2014, section 103B.101, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin Wetland stakeholder coordination. new text end

new text begin The board shall work with
wetland stakeholders to foster mutual understanding and provide recommendations for
improvements to the management of wetlands and related land and water resources,
including recommendations for updating the Wetland Conservation Act, developing
an in-lieu fee program as defined in section 103G.005, subdivision 10g, and related
provisions. The board may convene informal working groups or work teams to provide
information and education and to develop recommendations.
new text end

Sec. 2.

Minnesota Statutes 2014, section 103B.3355, is amended to read:

103B.3355 WETLAND FUNCTIONS FOR DETERMINING PUBLIC
VALUES.

(a) The public values of wetlands must be determined based upon the functions of
wetlands for:

(1) water quality, including filtering of pollutants to surface and groundwater,
utilization of nutrients that would otherwise pollute public waters, trapping of sediments,
shoreline protection, and utilization of the wetland as a recharge area for groundwater;

(2) floodwater and storm water retention, including the potential for flooding in
the watershed, the value of property subject to flooding, and the reduction in potential
flooding by the wetland;

(3) public recreation and education, including hunting and fishing areas, wildlife
viewing areas, and nature areas;

(4) commercial uses, including wild rice and cranberry growing and harvesting
and aquaculture;

(5) fish, wildlife, native plant habitats;

(6) low-flow augmentation;

(7) carbon sequestration; and

(8) other public uses.

(b) The Board of Water and Soil Resources, in consultation with the commissioners of
natural resources and agriculture and local government units, shall adopt rules establishing:

(1) scientific methodologies for determining the functions of wetlands; and

(2) criteria for determining the resulting public values of wetlands.

(c) The methodologies and criteria established under this section or other
methodologies and criteria that include the functions in paragraph (a) and are approved
by the board, in consultation with the commissioners of natural resources and agriculture
and local government units, must be used to determine the functions and resulting public
values of wetlands in the state. The functions listed in paragraph (a) are not listed in
order of priority.

(d) Public value criteria established or approved by the board under this section do
not apply in areas subject to local comprehensive wetland protection and management
plans established under section 103G.2243.

(e) The Board of Water and Soil Resources, in consultation with the commissioners
of natural resources and agriculture and local government units, deleted text begin may deleted text end new text begin must new text end identify deleted text begin regions deleted text end new text begin
areas new text end of the state where preservation, enhancement, restoration, and establishment
of wetlands would have high public value. The board, in consultation with the
commissioners, deleted text begin may deleted text end new text begin must new text end identify high priority deleted text begin wetland regions deleted text end new text begin areas for wetland
replacement new text end using available information relating to the factors listed in paragraph
(a) new text begin , the historic loss and abundance of wetlands, current applicable state and local
government water management and natural resource plans, and studies using a watershed
approach to identify current and future watershed needs new text end . The board shall notify local
units of government with water planning authority of these high priority deleted text begin regions deleted text end new text begin areas.
Designation of high priority areas is exempt from the rulemaking requirements of chapter
14, and section 14.386 does not apply. Designation of high priority areas is not effective
until 30 days after publication in the State Register new text end .

new text begin (f) Local units of government, as part of a state-approved comprehensive local
water management plan as defined in section 103B.3363, subdivision 3, a state-approved
comprehensive watershed management plan as defined in section 103B.3363, subdivision
3a, or a state-approved local comprehensive wetland protection and management plan
under section 103G.2243, may identify priority areas for wetland replacement and provide
them for consideration under paragraph (e).
new text end

Sec. 3.

Minnesota Statutes 2014, section 103F.612, subdivision 2, is amended to read:

Subd. 2.

Application.

(a) A wetland owner may apply to the county where a
wetland is located for designation of a wetland preservation area in a high priority wetland
area deleted text begin identified in a comprehensive local water plan, as defined in section 103B.3363,
subdivision 3, and located within a high priority wetland region deleted text end designated by the Board
of Water and Soil Resources, if the county chooses to accept wetland preservation area
applications. The application must be made on forms provided by the board. If a wetland
is located in more than one county, the application must be submitted to the county where
the majority of the wetland is located.

(b) The application shall be executed and acknowledged in the manner required
by law to execute and acknowledge a deed and must contain at least the following
information and other information the Board of Water and Soil Resources requires:

(1) legal description of the area to be approved, which must include an upland strip
at least 16-1/2 feet in width around the perimeter of wetlands within the area and may
include total upland area of up to four acres for each acre of wetland;

(2) parcel identification numbers where designated by the county auditor;

(3) name and address of the owner;

(4) a statement by the owner covenanting that the land will be preserved as a wetland
and will only be used in accordance with conditions prescribed by the Board of Water and
Soil Resources and providing that the restrictive covenant will be binding on the owner
and the owner's successors or assigns, and will run with the land.

(c) The upland strip required in paragraph (b), clause (1), must be planted with
permanent vegetation other than a noxious weed.

Sec. 4.

Minnesota Statutes 2014, section 103G.005, is amended by adding a
subdivision to read:

new text begin Subd. 10g. new text end

new text begin In-lieu fee program. new text end

new text begin "In-lieu fee program" means a program in which
wetland replacement requirements of section 103G.222 are satisfied through payment of
money to the board or a board-approved sponsor to develop replacement credits according
to section 103G.2242, subdivision 12.
new text end

Sec. 5.

Minnesota Statutes 2014, section 103G.222, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

(a) Wetlands must not be drained or filled, wholly or
partially, unless replaced by deleted text begin restoring or creating wetland areas of deleted text end new text begin actions that provide new text end
at least equal public value under a replacement plan approved as provided in section
103G.2242, a replacement plan under a local governmental unit's comprehensive wetland
protection and management plan approved by the board under section 103G.2243, or, if a
permit to mine is required under section 93.481, under a mining reclamation plan approved
by the commissioner under the permit to mine. For project-specific wetland replacement
completed prior to wetland impacts authorized or conducted under a permit to mine within
the Great Lakes and Rainy River watershed basins, those basins shall be considered a single
watershed for purposes of determining wetland replacement ratios. Mining reclamation
plans shall apply the same principles and standards for replacing wetlands by restoration
or creation of wetland areas that are applicable to mitigation plans approved as provided
in section 103G.2242. Public value must be determined in accordance with section
103B.3355 or a comprehensive wetland protection and management plan established
under section 103G.2243. Sections 103G.221 to 103G.2372 also apply to excavation in
permanently and semipermanently flooded areas of types 3, 4, and 5 wetlands.

(b) Replacement must be guided by the following principles in descending order
of priority:

(1) avoiding the direct or indirect impact of the activity that may destroy or diminish
the wetland;

(2) minimizing the impact by limiting the degree or magnitude of the wetland
activity and its implementation;

(3) rectifying the impact by repairing, rehabilitating, or restoring the affected
wetland environment;

(4) reducing or eliminating the impact over time by preservation and maintenance
operations during the life of the activity;

(5) compensating for the impact by restoring a wetland; and

(6) compensating for the impact by replacing or providing substitute wetland
resources or environments.

For a project involving the draining or filling of wetlands in an amount not exceeding
10,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
paragraph (a), the local government unit may make an on-site sequencing determination
without a written alternatives analysis from the applicant.

(c) If a wetland is located in a cultivated field, then replacement must be accomplished
through restoration only without regard to the priority order in paragraph (b), provided
that the altered wetland is not converted to a nonagricultural use for at least ten years.

(d) If a wetland is replaced under paragraph (c), or drained under section 103G.2241,
subdivision 2, paragraph (b) or (e), the local government unit may require a deed
restriction that prohibits nonagricultural use for at least ten years. The local government
unit may require the deed restriction if it determines the wetland area drained is at risk of
conversion to a nonagricultural use within ten years based on the zoning classification,
proximity to a municipality or full service road, or other criteria as determined by the
local government unit.

(e) Restoration and replacement of wetlands must be accomplished in accordance
with the ecology of the landscape area affected and ponds that are created primarily to
fulfill storm water management, and water quality treatment requirements may not be
used to satisfy replacement requirements under this chapter unless the design includes
pretreatment of runoff and the pond is functioning as a wetland.

(f) Except as provided in paragraph (g), for a wetland or public waters wetland
located on nonagricultural land, replacement must be in the ratio of two acres of replaced
wetland for each acre of drained or filled wetland.

(g) For a wetland or public waters wetland located on agricultural land or in a greater
than 80 percent area, replacement must be in the ratio of one acre of replaced wetland
for each acre of drained or filled wetland.

(h) Wetlands that are restored or created as a result of an approved replacement plan
are subject to the provisions of this section for any subsequent drainage or filling.

(i) Except in a greater than 80 percent area, only wetlands that have been
restored from previously drained or filled wetlands, wetlands created by excavation in
nonwetlands, wetlands created by dikes or dams along public or private drainage ditches,
or wetlands created by dikes or dams associated with the restoration of previously
drained or filled wetlands may be used deleted text begin in a statewide banking program established in deleted text end new text begin for
wetland replacement according to new text end rules adopted under section 103G.2242, subdivision 1.
Modification or conversion of nondegraded naturally occurring wetlands from one type to
another are not eligible for deleted text begin enrollment in a statewide wetlands bank deleted text end new text begin wetland replacement new text end .

(j) The Technical Evaluation Panel established under section 103G.2242, subdivision
2, shall ensure that sufficient time has occurred for the wetland to develop wetland
characteristics of soils, vegetation, and hydrology before recommending that the wetland
be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason
to believe that the wetland characteristics may change substantially, the panel shall
postpone its recommendation until the wetland has stabilized.

(k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 103G.2365
apply to the state and its departments and agencies.

(l) For projects involving draining or filling of wetlands associated with a new public
transportation project, and for projects expanded solely for additional traffic capacity,
public transportation authorities may purchase credits from the board at the cost to the
board to establish credits. Proceeds from the sale of credits provided under this paragraph
are appropriated to the board for the purposes of this paragraph. For the purposes of this
paragraph, "transportation project" does not include an airport project.

(m) A replacement plan for wetlands is not required for individual projects that
result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
or replacement of a currently serviceable existing state, city, county, or town public road
necessary, as determined by the public transportation authority, to meet state or federal
design or safety standards or requirements, excluding new roads or roads expanded solely
for additional traffic capacity lanes. This paragraph only applies to authorities for public
transportation projects that:

(1) minimize the amount of wetland filling or draining associated with the project
and consider mitigating important site-specific wetland functions on site;

(2) except as provided in clause (3), submit project-specific reports to the board, the
Technical Evaluation Panel, the commissioner of natural resources, and members of the
public requesting a copy at least 30 days prior to construction that indicate the location,
amount, and type of wetlands to be filled or drained by the project or, alternatively,
convene an annual meeting of the parties required to receive notice to review projects to
be commenced during the upcoming year; and

(3) for minor and emergency maintenance work impacting less than 10,000 square
feet, submit project-specific reports, within 30 days of commencing the activity, to the board
that indicate the location, amount, and type of wetlands that have been filled or drained.

Those required to receive notice of public transportation projects may appeal
minimization, delineation, and on-site mitigation decisions made by the public
transportation authority to the board according to the provisions of section 103G.2242,
subdivision 9. The Technical Evaluation Panel shall review minimization and delineation
decisions made by the public transportation authority and provide recommendations
regarding on-site mitigation if requested to do so by the local government unit, a
contiguous landowner, or a member of the Technical Evaluation Panel.

Except for state public transportation projects, for which the state Department of
Transportation is responsible, the board must replace the wetlands, and wetland areas of
public waters if authorized by the commissioner or a delegated authority, drained or filled
by public transportation projects on existing roads.

Public transportation authorities at their discretion may deviate from federal and
state design standards on existing road projects when practical and reasonable to avoid
wetland filling or draining, provided that public safety is not unreasonably compromised.
The local road authority and its officers and employees are exempt from liability for
any tort claim for injury to persons or property arising from travel on the highway and
related to the deviation from the design standards for construction or reconstruction under
this paragraph. This paragraph does not preclude an action for damages arising from
negligence in construction or maintenance on a highway.

(n) If a landowner seeks approval of a replacement plan after the proposed project
has already affected the wetland, the local government unit may require the landowner to
replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise
required.

(o) A local government unit may request the board to reclassify a county or
watershed on the basis of its percentage of presettlement wetlands remaining. After
receipt of satisfactory documentation from the local government, the board shall change
the classification of a county or watershed. If requested by the local government unit,
the board must assist in developing the documentation. Within 30 days of its action to
approve a change of wetland classifications, the board shall publish a notice of the change
in the Environmental Quality Board Monitor.

(p) One hundred citizens who reside within the jurisdiction of the local government
unit may request the local government unit to reclassify a county or watershed on the basis
of its percentage of presettlement wetlands remaining. In support of their petition, the
citizens shall provide satisfactory documentation to the local government unit. The local
government unit shall consider the petition and forward the request to the board under
paragraph (o) or provide a reason why the petition is denied.

Sec. 6.

Minnesota Statutes 2014, section 103G.222, subdivision 3, is amended to read:

Subd. 3.

Wetland replacement siting.

(a) Impacted wetlands in a 50 to 80 percent
area must be replaced in a 50 to 80 percent area or in a less than 50 percent area. Impacted
wetlands in a less than 50 percent area must be replaced in a less than 50 percent area.
All wetland replacement must follow this priority order:

(1) on site or in the same minor watershed as the impacted wetland;

(2) in the same watershed as the impacted wetland;

(3) in the same county or wetland bank service area as the impacted wetland; new text begin and
new text end

(4) in another wetland bank service area deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (5) statewide for public transportation projects, except that wetlands impacted in
less than 50 percent areas must be replaced in less than 50 percent areas, and wetlands
impacted in the seven-county metropolitan area must be replaced at a ratio of two to one in:
(i) the affected county or, (ii) in another of the seven metropolitan counties, or (iii) in one
of the major watersheds that are wholly or partially within the seven-county metropolitan
area, but at least one to one must be replaced within the seven-county metropolitan area.
deleted text end

deleted text begin (b) The exception in paragraph (a), clause (5), does not apply to replacement
completed using wetland banking credits established by a person who submitted a
complete wetland banking application to a local government unit by April 1, 1996.
deleted text end

new text begin (b) Notwithstanding paragraph (a), clauses (1) and (2), the priority order for
replacement by wetland banking begins at paragraph (a), clause (3), according to rules
adopted under section 103G.2242, subdivision 1.
new text end

(c) When reasonable, practicable, and environmentally beneficial replacement
opportunities are not available in siting priorities listed in paragraph (a), the applicant
may seek opportunities at the next level.

(d) For the purposes of this section, "reasonable, practicable, and environmentally
beneficial replacement opportunities" are defined as opportunities that:

(1) take advantage of naturally occurring hydrogeomorphological conditions and
require minimal landscape alteration;

(2) have a high likelihood of becoming a functional wetland that will continue
in perpetuity;

(3) do not adversely affect other habitat types or ecological communities that are
important in maintaining the overall biological diversity of the area; and

(4) are available and capable of being done after taking into consideration cost,
existing technology, and logistics consistent with overall project purposes.

deleted text begin (e) Applicants and local government units shall rely on board-approved
comprehensive inventories of replacement opportunities and watershed conditions,
including the Northeast Minnesota Wetland Mitigation Inventory and Assessment (January
2010), in determining whether reasonable, practicable, and environmentally beneficial
replacement opportunities are available.
deleted text end

deleted text begin (f) deleted text end new text begin (e) new text end Regulatory agencies, local government units, and other entities involved in
wetland restoration shall collaborate to identify potential replacement opportunities within
their jurisdictional areas.

new text begin (f) The board must establish wetland replacement ratios and wetland bank service
area priorities to implement the siting and targeting of wetland replacement and encourage
the use of high priority areas for wetland replacement.
new text end

Sec. 7.

Minnesota Statutes 2014, section 103G.2242, subdivision 1, is amended to read:

Subdivision 1.

Rules.

(a) The board, in consultation with the commissioner, shall
adopt rules governing the approval of wetland value replacement plans under this section
and public waters work permits affecting public waters wetlands under section 103G.245.
These rules must address the criteria, procedure, timing, and location of acceptable
replacement of wetland values deleted text begin ; deleted text end new text begin and new text end may address the state establishment and administration
of a wetland banking program for public and private projects, deleted text begin which may include deleted text end new text begin including new text end
provisions deleted text begin allowing monetary payment to the wetland banking program for alteration of
wetlands on agricultural land deleted text end new text begin for an in-lieu fee program new text end ; the administrative, monitoring, and
enforcement procedures to be used; and a procedure for the review and appeal of decisions
under this section. In the case of peatlands, the replacement plan rules must consider the
impact on carbon deleted text begin balance described in the report required by Laws 1990, chapter 587, and
include the planting of trees or shrubs deleted text end . new text begin Any in-lieu fee program established by the board
must conform with Code of Federal Regulations, title 33, section 332.8, as amended.
new text end

(b) After the adoption of the rules, a replacement plan must be approved by a
resolution of the governing body of the local government unit, consistent with the
provisions of the rules or a comprehensive wetland protection and management plan
approved under section 103G.2243.

(c) If the local government unit fails to apply the rules, or fails to implement a
local comprehensive wetland protection and management plan established under section
103G.2243, the government unit is subject to penalty as determined by the board.

Sec. 8.

Minnesota Statutes 2014, section 103G.2242, subdivision 2, is amended to read:

Subd. 2.

Evaluation.

(a) Questions concerning the public value, location, size,
or type of a wetland shall be submitted to and determined by a Technical Evaluation
Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of
a technical professional employee of the board, a technical professional employee of
the local soil and water conservation district or districts, a technical professional with
expertise in water resources management appointed by the local government unit, and
a technical professional employee of the Department of Natural Resources for projects
affecting public waters or wetlands adjacent to public waters. The panel shall use the
"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987),
including updates, supplementary guidance, and replacements, if any, "Wetlands of
the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition),
and "Classification of Wetlands and Deepwater Habitats of the United States" (1979
edition). The panel shall provide the wetland determination and recommendations on
other technical matters to the local government unit that must approve a replacement
plan, wetland banking plan, exemption determination, no-loss determination, or wetland
boundary or type determination and may recommend approval or denial of the plan. The
authority must consider and include the decision of the Technical Evaluation Panel in their
approval or denial of a plan or determination.

(b) Persons conducting wetland or public waters boundary delineations or type
determinations are exempt from the requirements of chapter 326. The board may develop
a professional wetland delineator certification program.

new text begin (c) The board must establish an interagency team to assist in identifying and
evaluating potential wetland replacement sites. The team must consist of members
of the Technical Evaluation Panel and representatives from the Department of Natural
Resources; the Pollution Control Agency; the United States Army Corps of Engineers, St.
Paul district; and other organizations as determined by the board.
new text end

Sec. 9.

Minnesota Statutes 2014, section 103G.2242, subdivision 3, is amended to read:

Subd. 3.

Replacement completion.

new text begin (a) new text end Replacement of wetland values must be
completed prior to or concurrent with the actual draining or filling of a wetland, unless new text begin :
new text end

new text begin (1) new text end an irrevocable bank letter of credit or other deleted text begin security deleted text end new text begin financial assurance new text end
acceptable to the local government unit or the board is given to the local government unit
or the board to guarantee the successful completion of the replacement deleted text begin . deleted text end new text begin ; or new text end

new text begin (2) the replacement is approved under an in-lieu fee program according to rules
adopted under subdivision 1. In the case of an in-lieu fee program established by a
board-approved sponsor, the board may require that a financial assurance in an amount
and method acceptable to the board be given to the board to ensure the approved sponsor
fulfills the sponsor's obligation to complete the required wetland replacement.
new text end

deleted text begin The board may establish, sponsor, or administer a wetland banking program, which
may include provisions allowing monetary payment to the wetland bank for impacts to
wetlands on agricultural land, for impacts that occur in greater than 80 percent areas, and
for public road projects. deleted text end new text begin (b) The board may acquire land in fee title, purchase or accept
easements, enter into agreements, and purchase existing wetland replacement credits to
facilitate the wetland banking program. The board may establish in-lieu fee payment
amounts and hold money in an account in the special revenue fund, which is appropriated
to the board to be used solely for establishing replacement wetlands and administering the
wetland banking program.
new text end

new text begin (c) new text end The board shall coordinate the establishment and operation of a wetland bank
with the United States Army Corps of Engineers, the Natural Resources Conservation
Service of the United States Department of Agriculture, and the commissioners of natural
resources, agriculture, and the Pollution Control Agency.

Sec. 10.

Minnesota Statutes 2014, section 103G.2242, subdivision 4, is amended to
read:

Subd. 4.

Decision.

Upon receiving and considering all required data, the local
government unit reviewing replacement plan applications, deleted text begin banking plan deleted text end new text begin sequencing new text end
applications, and exemption or no-loss determination requests must act on all replacement
plan applications, deleted text begin banking plan deleted text end new text begin sequencing new text end applications, and exemption or no-loss
determination requests in compliance with section 15.99.

Sec. 11.

Minnesota Statutes 2014, section 103G.2242, subdivision 12, is amended to
read:

Subd. 12.

Replacement credits.

(a) No public or private wetland restoration,
enhancement, or construction may be allowed for replacement unless specifically
designated for replacement and paid for by the individual or organization performing the
wetland restoration, enhancement, or construction deleted text begin , and is completed prior to any draining
or filling of the wetland deleted text end .

(b) Paragraph (a) does not apply to a wetland whose owner has paid back with
interest the individual or organization restoring, enhancing, or constructing the wetland.

(c) Notwithstanding section 103G.222, subdivision 1, paragraph (i), the following
actions, and others established in rule, that are consistent with criteria in rules adopted by
the board in conjunction with the commissioners of natural resources and agriculture, are
eligible for replacement credit as determined by the local government unit new text begin or the board new text end ,
including enrollment in a statewide wetlands bank:

(1) reestablishment of permanent native, noninvasive vegetative cover on a wetland
on agricultural land that was planted with annually seeded crops, was in a crop rotation
seeding of pasture grasses or legumes, or was in a land retirement program during the
past ten years;

(2) buffer areas of permanent native, noninvasive vegetative cover established or
preserved on upland adjacent to replacement wetlands;

(3) wetlands restored for conservation purposes under terminated easements or
contracts; deleted text begin and
deleted text end

(4) water quality treatment ponds constructed to pretreat storm water runoff prior
to discharge to wetlands, public waters, or other water bodies, provided that the water
quality treatment ponds must be associated with an ongoing or proposed project that
will impact a wetland and replacement credit for the treatment ponds is based on the
replacement of wetland functions and on an approved storm water management plan for
the local government deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) in a greater than 80 percent area, restoration and protection of streams, riparian
buffers, and habitat corridors that are important to the functions and sustainability of
aquatic resources.
new text end

(d) Notwithstanding section 103G.222, subdivision 1, paragraphs (f) and (g), the
board may establish by rule different replacement ratios for restoration projects with
exceptional natural resource value.

Sec. 12.

Minnesota Statutes 2014, section 103G.2242, subdivision 14, is amended to
read:

Subd. 14.

Fees established.

(a) Fees must be assessed for managing wetland bank
accounts and transactions as follows:

(1) account maintenance annual fee: one percent of the value of credits not to
exceed $500;

(2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not
to exceed $1,000 per establishment, deposit, or transfer; and

(3) withdrawal fee: 6.5 percent of the value of credits withdrawn.

(b) The board may establish fees at or below the amounts in paragraph (a) for
single-user or other dedicated wetland banking accounts.

(c) Fees for single-user or other dedicated wetland banking accounts established
pursuant to section 103G.005, subdivision 10e, clause (4), are limited to establishment
of a wetland banking account and are assessed at the rate of 6.5 percent of the value of
the credits not to exceed $1,000.

new text begin (d) The board may assess a fee to pay the costs associated with establishing
conservation easements, or other long-term protection mechanisms prescribed in the rules
adopted under subdivision 1, on property used for wetland replacement.
new text end

Sec. 13.

Minnesota Statutes 2014, section 103G.2251, is amended to read:

103G.2251 STATE CONSERVATION EASEMENTS; WETLAND BANK
CREDIT.

In greater than 80 percent areas, preservation of wetlands new text begin , riparian buffers,
habitat corridors, and watershed areas essential to maintaining important functions and
sustainability of aquatic resources in the watershed that are new text end protected by a permanent
conservation easement as defined under section 84C.01 and held by the board may be
eligible for wetland replacement or mitigation credits, according to rules adopted by
the board. To be eligible for credit under this section, a conservation easement must be
established after May 24, 2008, and approved by the board. Wetland areas on private
lands preserved under this section are not eligible for replacement or mitigation credit if
the area has been protected using public conservation funds.

Sec. 14. new text begin REPORT.
new text end

new text begin By March 15, 2016, the Board of Water and Soil Resources, in cooperation with the
Department of Natural Resources, shall report to the committees with jurisdiction over
environment and natural resources on the proposals to implement high priority areas for
wetland replacement and in-lieu fees for replacement and modify wetland replacement
siting and actions eligible for credit. In developing the report, the board and department
shall consult with stakeholders and agencies.
new text end

Sec. 15. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the subdivisions of Minnesota Statutes,
section 103G.005, to retain alphabetical order and shall correct cross-references to the
renumbered subdivisions.
new text end