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SF 1983

as introduced - 93rd Legislature (2023 - 2024) Posted on 06/28/2023 03:56pm

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

Current Version - as introduced

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A bill for an act
relating to natural resources; modifying provisions for water and soil conservation;
amending Minnesota Statutes 2022, sections 103B.101, subdivisions 9, 16, by
adding a subdivision; 103B.103; 103C.501, subdivisions 1, 4, 5, 6; 103D.605,
subdivision 5; 103F.505; 103F.511, by adding a subdivision; 103G.2242,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 103B;
103F; repealing Minnesota Statutes 2022, section 103C.501, subdivisions 2, 3;
Minnesota Rules, parts 8400.0500; 8400.0550; 8400.0600, subparts 4, 5; 8400.0900,
subparts 1, 2, 4, 5; 8400.1650; 8400.1700; 8400.1750; 8400.1800; 8400.1900.

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

Section 1.

Minnesota Statutes 2022, section 103B.101, subdivision 9, is amended to read:


Subd. 9.

Powers and duties.

(a) In addition to the powers and duties prescribed
elsewhere, the board shall:

(1) coordinate the water and soil resources planning and implementation activities of
counties, soil and water conservation districts, watershed districts, watershed management
organizations, and any other local units of government through its various authorities for
approval of local plans, administration of state grants, contracts and easements, and by other
means as may be appropriate;

(2) facilitate communication and coordination among state agencies in cooperation with
the Environmental Quality Board, and between state and local units of government, in order
to make the expertise and resources of state agencies involved in water and soil resources
management available to the local units of government to the greatest extent possible;

(3) coordinate state and local interests with respect to the study in southwestern Minnesota
under United States Code, title 16, section 1009;

(4) develop information and education programs designed to increase awareness of local
water and soil resources problems and awareness of opportunities for local government
involvement in preventing or solving them;

(5) provide a forum for the discussion of local issues and opportunities relating to water
and soil resources management;

(6) adopt an annual budget and work program that integrate the various functions and
responsibilities assigned to it by law; and

(7) report to the governor and the legislature by October 15 of each even-numbered year
with an assessment of board programs and recommendations for any program changes and
board membership changes necessary to improve state and local efforts in water and soil
resources management.

(b) The board may accept grants, gifts, donations, or contributions in money, services,
materials, or otherwise from the United States, a state agency, or other source to achieve
an authorized or delegated purpose. The board may enter into a contract or agreement
necessary or appropriate to accomplish the transfer. The board may conduct or participate
in local, state, or federal programs or projects that have as one purpose or effect the
preservation or enhancement of water and soil resources and may enter into and administer
agreements with local governments or landowners or their designated agents as part of those
programs or projects. The board may receive and expend money to acquire conservation
easements, as defined in chapter 84C, on behalf of the state and federal government consistent
with deleted text begin thedeleted text end Camp Ripley's Army Compatible Use Buffer Projectnew text begin , Sentinel Landscape program,
or related conservation programs
new text end .new text begin The board may enter into agreements, including grant
agreements, with Tribal nations, federal agencies, higher education institutions, local
governments, and private sector organizations to carry out programs and other responsibilities
prescribed or allowed by statute.
new text end

(c) Any money received is hereby deposited in an account in a fund other than the general
fund and appropriated and dedicated for the purpose for which it is granted.

Sec. 2.

Minnesota Statutes 2022, section 103B.101, subdivision 16, is amended to read:


Subd. 16.

deleted text begin Water qualitydeleted text end new text begin Conservationnew text end practices; standardized specifications.

new text begin (a)
new text end The board deleted text begin of Water and Soil Resources shalldeleted text end new text begin mustnew text end work with state and federal agencies,new text begin
Tribal nations,
new text end academic institutions, local governments, practitioners, and stakeholders to
foster mutual understanding and provide recommendations for standardized specifications
for deleted text begin water quality and soildeleted text end conservation deleted text begin protection and improvementdeleted text end practices deleted text begin anddeleted text end new text begin ,new text end projectsdeleted text begin .deleted text end new text begin ,
and systems for:
new text end

new text begin (1) erosion or sedimentation control;
new text end

new text begin (2) improvements to water quality or water quantity;
new text end

new text begin (3) habitat restoration and enhancement;
new text end

new text begin (4) energy conservation; and
new text end

new text begin (5) climate adaptation, resiliency, or mitigation.
new text end

new text begin (b)new text end The board may convene working groups or work teams to develop information,
education, and recommendations.

Sec. 3.

Minnesota Statutes 2022, section 103B.101, is amended by adding a subdivision
to read:


new text begin Subd. 18. new text end

new text begin Guidelines for establishing and enhancing native vegetation. new text end

new text begin (a) The board
must work with state and federal agencies, Tribal nations, academic institutions, local
governments, practitioners, and stakeholders to foster mutual understanding and to provide
recommendations for standardized specifications to establish and enhance native vegetation
to provide benefits for:
new text end

new text begin (1) water quality;
new text end

new text begin (2) soil conservation;
new text end

new text begin (3) habitat enhancement;
new text end

new text begin (4) energy conservation; and
new text end

new text begin (5) climate adaptation, resiliency, or mitigation.
new text end

new text begin (b) The board may convene working groups or work teams to develop information,
education, and recommendations.
new text end

Sec. 4.

Minnesota Statutes 2022, section 103B.103, is amended to read:


103B.103 EASEMENT STEWARDSHIP ACCOUNTS.

Subdivision 1.

Accounts established; sources.

(a) The water and soil conservation
easement stewardship account and the mitigation easement stewardship account are created
in the special revenue fund. The accounts consist of money credited to the accounts and
interest and other earnings on money in the accounts. The State Board of Investment must
manage the accounts to maximize long-term gain.

(b) Revenue from contributions and money appropriated for any purposes of the account
as described in subdivision 2 must be deposited in the water and soil conservation easement
stewardship account. Revenue from contributions, deleted text begin wetland bankingdeleted text end new text begin mitigationnew text end fees designated
for stewardship purposes by the board, easement stewardship payments authorized under
subdivision 3, and money appropriated for any purposes of the account as described in
subdivision 2 must be deposited in the mitigation easement stewardship account.

Subd. 2.

Appropriation; purposes of accounts.

Five percent of the balance on July 1
each year in the water and soil conservation easement stewardship account and five percent
of the balance on July 1 each year in the mitigation easement stewardship account are
annually appropriated to the board and may be spent deleted text begin onlydeleted text end to cover the costs of managing
easements held by the board, including costs associated withnew text begin :
new text end

new text begin (1) repairing or replacing structures;
new text end

new text begin (2)new text end monitoringdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (3)new text end landowner contactsdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (4)new text end records storage and managementdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (5)new text end processing landowner noticesdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (6)new text end requests for approval or amendmentsdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (7)new text end enforcementdeleted text begin ,deleted text end new text begin ;new text end and

new text begin (8)new text end legal services associated with easement management activities.

Subd. 3.

Financial contributions.

The board shall seek a financial contribution to the
water and soil conservation easement stewardship account for each conservation easement
acquired by the board. The board shall seek a financial contribution or assess an easement
stewardship payment to the mitigation easement stewardship account for each wetland
deleted text begin bankingdeleted text end new text begin mitigationnew text end easement acquired by the board. Unless otherwise provided by law, the
board shall determine the amount of the contribution or payment, which must be an amount
calculated to earn sufficient money to meet the costs of managing the easement at a level
that neither significantly overrecovers nor underrecovers the costs. In determining the
amount of the financial contribution, the board shall consider:

(1) the estimated annual staff hours needed to manage the conservation easement, taking
into consideration factors such as easement type, size, location, and complexity;

(2) the average hourly wages for the class or classes of state and local employees expected
to manage the easement;

(3) the estimated annual travel expenses to manage the easement;

(4) the estimated annual miscellaneous costs to manage the easement, including supplies
and equipment, information technology support, and aerial flyovers;

(5) the estimated annualized costs of legal services, including the cost to enforce the
easement in the event of a violation;

new text begin (6) the estimated annualized costs for repairing or replacing water control structures;new text end
and

deleted text begin (6)deleted text end new text begin (7)new text end the expected rate of return on investments in the account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [103B.105] HABITAT-FRIENDLY UTILITIES PROGRAM.
new text end

new text begin (a) The Board of Water and Soil Resources may provide financial and technical assistance
to promote the successful establishment of native vegetation as part of utility projects,
including solar and wind projects, pipelines, and electrical transmission corridors, to:
new text end

new text begin (1) ensure the integrity and resiliency of Minnesota landscapes; and
new text end

new text begin (2) protect habitat and water resources.
new text end

new text begin (b) The board must establish criteria for grants or payments awarded under this section.
Grants or payments awarded under this section may prioritize proposals in areas identified
by state and federal agencies and conservation partners for protecting high-priority natural
resources and wildlife species.
new text end

new text begin (c) The board may collaborate with and enter into agreements with federal, state, and
local agencies; Tribal nations; utility companies; nonprofit organizations; and contractors
to implement and promote the program.
new text end

Sec. 6.

new text begin [103B.106] HABITAT ENHANCEMENT LANDSCAPE PROGRAM.
new text end

new text begin (a) The Board of Water and Soil Resources may provide financial and technical assistance
to establish or enhance areas of diverse native vegetation to:
new text end

new text begin (1) support declining populations of bees, butterflies, dragonflies, birds, and other wildlife
species that are essential for ecosystems and food production across conservation lands,
open spaces, and natural areas; and
new text end

new text begin (2) provide additional benefits for water management, carbon sequestration, and landscape
and climate resiliency.
new text end

new text begin (b) The board must establish criteria for grants or payments awarded under this section.
Grants or payments awarded under this section may prioritize proposals in areas identified
by state and federal agencies and conservation partners as high priority for protecting
endangered or threatened pollinator and other species.
new text end

new text begin (c) The board may collaborate with and enter into agreements with federal, state, and
local agencies; Tribal nation; nonprofit organizations; and contractors to implement and
promote the program.
new text end

Sec. 7.

Minnesota Statutes 2022, section 103C.501, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Cost-sharedeleted text end new text begin Programnew text end authorization.

The state board may allocate
available funds to districts deleted text begin to share the cost of systems ordeleted text end new text begin for new text end practicesnew text begin , projects, and systemsnew text end
fornew text begin :
new text end

new text begin (1)new text end erosion or sedimentation control deleted text begin ordeleted text end new text begin ;
new text end

new text begin (2) improvements tonew text end water quality deleted text begin improvement that are designed to protect and improve
soil and water resources.
deleted text end new text begin or water quantity;
new text end

new text begin (3) habitat enhancement;
new text end

new text begin (4) plant biodiversity;
new text end

new text begin (5) energy conservation; or
new text end

new text begin (6) climate adaptation, resiliency, or mitigation.
new text end

Sec. 8.

Minnesota Statutes 2022, section 103C.501, subdivision 4, is amended to read:


Subd. 4.

deleted text begin Cost-sharingdeleted text end new text begin Use ofnew text end funds.

deleted text begin (a) The state board shall allocate cost-sharing funds
to areas with high-priority erosion, sedimentation, or water quality problems or water quantity
problems due to altered hydrology. The areas must be selected based on priorities established
by the state board.
deleted text end

deleted text begin (b)deleted text end The allocated funds must be used deleted text begin fordeleted text end new text begin :
new text end

new text begin (1) for new text end conservation deleted text begin practices for high-priority problemsdeleted text end new text begin activities, including technical
and financial assistance,
new text end identified in deleted text begin the comprehensive and annual work plans of the
districts, for the technical assistance portion of the grant funds
deleted text end new text begin state-approved plans that are
related to water and natural resources and established under chapters 103B, 103C, 103D,
103F, 103G, and 114D;
new text end

new text begin (2) new text end to leverage federal or other nonstate fundsdeleted text begin ,deleted text end new text begin ;new text end or

new text begin (3) new text end to address high-priority needs identified deleted text begin in local water management plans or
comprehensive watershed management plans
deleted text end new text begin by the district based on public inputnew text end .

Sec. 9.

Minnesota Statutes 2022, section 103C.501, subdivision 5, is amended to read:


Subd. 5.

Contracts by districts.

(a) A district deleted text begin boarddeleted text end may deleted text begin contract on a cost-share basis
to furnish financial aid to
deleted text end new text begin provide technical and financial assistance tonew text end a land occupier or
to a statenew text begin or federalnew text end agency for deleted text begin permanent systemsdeleted text end new text begin practices and projectsnew text end fornew text begin :
new text end

new text begin (1)new text end erosion or sedimentation control deleted text begin ordeleted text end new text begin ;
new text end

new text begin (2) improvements tonew text end water quality or water quantity deleted text begin improvements that are consistent
with the district's comprehensive and annual work plans.
deleted text end new text begin ;
new text end

new text begin (3) habitat enhancement;
new text end

new text begin (4) plant biodiversity;
new text end

new text begin (5) energy conservation; or
new text end

new text begin (6) climate adaptation, resiliency, or mitigation.
new text end

(b) A district deleted text begin board, with approval from the state board anddeleted text end new text begin ,new text end consistent with state board
rules and policies, may contract deleted text begin on a cost-share basis to furnish financial aid to a land
occupier for
deleted text end new text begin to provide technical and financial assistance for structural and new text end nonstructural
deleted text begin land managementdeleted text end practices deleted text begin that are part of a planned erosion control or water quality
improvement plan
deleted text end new text begin and projectsnew text end .

deleted text begin (c) The duration of the contract must, at a minimum, be the time required to complete
the planned systems. A contract must specify that the land occupier is liable for monetary
damages and penalties in an amount up to 150 percent of the financial assistance received
from the district, for failure to complete the systems or practices in a timely manner or
maintain the systems or practices as specified in the contract.
deleted text end

deleted text begin (d) A contract may provide for cooperation or funding with federal agencies. A land
occupier or state agency may provide the cost-sharing portion of the contract through services
in kind.
deleted text end

deleted text begin (e)deleted text end new text begin (c)new text end The state board or the district deleted text begin boarddeleted text end may not furnish any financial deleted text begin aiddeleted text end new text begin assistancenew text end
for practices designed only to increase land productivity.

deleted text begin (f)deleted text end new text begin (d)new text end When a district deleted text begin boarddeleted text end determines that long-term maintenance of a system or
practice is desirable, the new text begin district or the state new text end board may require that maintenance be made
a covenant upon the land for the effective life of the practice. A covenant under this
subdivision shall be construed in the same manner as a conservation restriction under section
84.65.

Sec. 10.

Minnesota Statutes 2022, section 103C.501, subdivision 6, is amended to read:


Subd. 6.

Policies and rules.

deleted text begin (a)deleted text end The state board may adopt rules and shall adopt policies
prescribing:

(1) procedures and criteria for allocating funds deleted text begin for cost-sharing contractsdeleted text end ;new text begin and
new text end

(2) standards and guidelines for deleted text begin cost-sharingdeleted text end new text begin implementing the conservationnew text end contractsdeleted text begin ;deleted text end new text begin
program.
new text end

deleted text begin (3) the scope and content of district comprehensive plans, plan amendments, and annual
work plans;
deleted text end

deleted text begin (4) standards and methods necessary to plan and implement a priority cost-sharing
program, including guidelines to identify high priority erosion, sedimentation, and water
quality problems and water quantity problems due to altered hydrology;
deleted text end

deleted text begin (5) the share of the cost of conservation practices to be paid from cost-sharing funds;
and
deleted text end

deleted text begin (6) requirements for districts to document their efforts to identify and contact land
occupiers with high priority problems.
deleted text end

deleted text begin (b) The rules may provide that cost sharing may be used for windbreaks and shelterbelts
for the purposes of energy conservation and snow protection.
deleted text end

Sec. 11.

Minnesota Statutes 2022, section 103D.605, subdivision 5, is amended to read:


Subd. 5.

Establishment order.

After the project hearing, if the managers find that the
project will be conducive to public health,new text begin willnew text end promote the general welfare, and deleted text begin is in
compliance
deleted text end new text begin compliesnew text end with the watershed management plan and the provisions of this chapter,
the deleted text begin boarddeleted text end new text begin managersnew text end must, by order, establish the project. The establishment order must
include the findings of the managers.

Sec. 12.

new text begin [103F.06] SOIL HEALTH PRACTICES PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) In this section, the following terms have the meanings
given:
new text end

new text begin (1) "board" means the Board of Water and Soil Resources;
new text end

new text begin (2) "local units of government" has the meaning given under section 103B.305,
subdivision 5; and
new text end

new text begin (3) "soil health" has the meaning given under section 103C.101, subdivision 10a.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin (a) The board must administer a financial and technical support
program to produce soil health practices that achieve water quality, soil productivity, climate
change resiliency, or carbon sequestration benefits.
new text end

new text begin (b) The program must include but is not limited to no till, field borders, prairie strips,
cover crops, and other practices sanctioned by the board or the United States Department
of Agriculture's Natural Resources Conservation Service.
new text end

new text begin Subd. 3. new text end

new text begin Financial and technical assistance. new text end

new text begin (a) The board may provide financial and
technical support to local units of government, private sector organizations, and farmers to
establish soil health practices and related practices with climate and water-quality benefits.
new text end

new text begin (b) The board must establish practices and costs that are eligible for financial and technical
support under this section.
new text end

new text begin Subd. 4. new text end

new text begin Program implementation. new text end

new text begin (a) The board may employ staff or enter into external
agreements to implement this section.
new text end

new text begin (b) The board must assist local units of government in achieving the objectives of the
program, including assessing practice standards and program effectiveness.
new text end

new text begin Subd. 5. new text end

new text begin Federal aid availability. new text end

new text begin The board must regularly review availability of federal
funds and programs to supplement or complement state and other efforts consistent with
the purposes of this section.
new text end

new text begin Subd. 6. new text end

new text begin Soil health practices. new text end

new text begin The board, in consultation with the commissioner of
agriculture, may cooperate with the United States Department of Agriculture, other federal
and state agencies, local governments, and private sector organizations to establish soil
health goals for the state that will achieve water quality, soil productivity, climate change
resiliency, and carbon sequestration benefits.
new text end

Sec. 13.

Minnesota Statutes 2022, section 103F.505, is amended to read:


103F.505 PURPOSE AND POLICY.

new text begin (a) new text end It is the purpose of sections 103F.505 to 103F.531 to restore certain marginal
agricultural land and protect environmentally sensitive areas tonew text begin :
new text end

new text begin (1)new text end enhance soil and water qualitydeleted text begin ,deleted text end new text begin ;
new text end

new text begin (2)new text end minimize damage to flood-prone areasdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (3)new text end sequester carbondeleted text begin , anddeleted text end new text begin ;
new text end

new text begin (4)new text end support native plant, fish, and wildlife habitatsdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (5) establish perennial vegetation.
new text end

new text begin (b)new text end It is state policy to encourage deleted text begin thedeleted text end new text begin :
new text end

new text begin (1)new text end restoration of wetlands and riparian lands deleted text begin and promote the retirementdeleted text end new text begin ;
new text end

new text begin (2) restoration and protectionnew text end of marginal, highly erodible land, particularly land adjacent
to public waters, drainage systems, wetlands, and locally designated priority watersdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) protection of environmentally sensitive areas, including wellhead protection areas,
grasslands, peatlands, shorelands, and forest lands in priority areas.
new text end

Sec. 14.

Minnesota Statutes 2022, section 103F.511, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Grasslands. new text end

new text begin "Grasslands" means landscapes that are or were formerly
dominated by grasses, that have a low percentage of trees and shrubs, and that provide
economic and ecosystem services such as grazing, wildlife habitat, carbon sequestration,
and water filtration and retention.
new text end

Sec. 15.

new text begin [103F.519] REINVEST IN MINNESOTA WORKING LANDS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The board may establish and administer a reinvest in
Minnesota working lands program that is in addition to the program established under
section 103F.515. Selecting land for the program must be based on the land's potential for:
new text end

new text begin (1) protecting or improving water quality;
new text end

new text begin (2) reducing erosion;
new text end

new text begin (3) improving soil health;
new text end

new text begin (4) reducing chemical inputs;
new text end

new text begin (5) improving carbon storage; and
new text end

new text begin (6) increasing biodiversity and habitat for fish, wildlife, and native plants.
new text end

new text begin Subd. 2. new text end

new text begin Applicability. new text end

new text begin Section 103F.515 applies to this section except as otherwise
provided in subdivisions 1, 3, and 4.
new text end

new text begin Subd. 3. new text end

new text begin Nature of property rights acquired. new text end

new text begin Notwithstanding section 103F.515,
subdivision 4, paragraph (a), the board may authorize haying and livestock grazing, perennial
or winter annual cover crop production, forest management, or other activities that the board
determines are consistent with section 103F.505 or appropriation conditions or criteria.
new text end

new text begin Subd. 4. new text end

new text begin Payments for easements. new text end

new text begin The board must establish payment rates for acquiring
easements and for related practices. The board must consider market factors as well as
easement terms, including length and allowable uses, when establishing rates.
new text end

Sec. 16.

Minnesota Statutes 2022, 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 and may address the state establishment and administration of a wetland
banking program for public and private projects, including provisions for an in-lieu fee
program;new text begin mitigating and banking other water and water-related resources;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. Any in-lieu fee program established by the board must
conform with Code of Federal Regulations, title 33, section 332.8, as amended.

(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.

(d) When making a determination under rules adopted pursuant to this subdivision on
whether a rare natural community will be permanently adversely affected, consideration of
measures to mitigate any adverse effect on the community must be considered.

Sec. 17. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, section 103C.501, subdivisions 2 and 3, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 8400.0500; 8400.0550; 8400.0600, subparts 4 and 5;
8400.0900, subparts 1, 2, 4, and 5; 8400.1650; 8400.1700; 8400.1750; 8400.1800; and
8400.1900,
new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-03609

103C.501 COST-SHARING CONSERVATION CONTRACTS FOR EROSION CONTROL AND WATER MANAGEMENT.

Subd. 2.

Request by district board.

A district board requesting funds of the state board must submit an application in a form prescribed by the board containing:

(1) a comprehensive plan;

(2) an annual work plan; and

(3) an application for cost-sharing funds.

Subd. 3.

Approving application.

If the state board approves the comprehensive plan, including the plan's most recent amendment, the annual work plan, and the application of the district, the state board shall determine the specific amount of funds to allocate to the district for cost-sharing contracts.

Repealed Minnesota Rule: 23-03609

8400.0500 MAXIMUM COST-SHARE RATES.

The maximum cost-share rates established by the state board represent the maximum percent or amount of the total cost of a conservation practice that may be funded using state cost-share funds.

8400.0550 RECORDING CONSERVATION PRACTICES.

The state board may determine that long-term maintenance of a conservation practice is desirable and may require that maintenance be made a covenant upon the land for the effective life of the practice. A covenant under this part shall be construed in the same manner as a conservation restriction under Minnesota Statutes, section 84.65.

8400.0600 STATE BOARD ALLOCATION OF FUNDS TO DISTRICTS.

Subp. 4.

Grants to districts.

The state board shall allocate cost-share funds to district boards that have fully complied with Minnesota Statutes, section 103C.501, subdivision 3; all erosion control and water management program rules; and program policies.

Subp. 5.

Other funds.

Other funds received by the state board may be allocated to districts for the treatment of erosion, sedimentation, water quality problems, or water quantity problems due to altered hydrology. These additional funds may be incorporated with existing erosion control and water management program funds and their use may be governed by the program policy or may be subject to other policies or guidelines required to fully implement the intent for which these additional funds were appropriated.

8400.0900 DISTRICT ADMINISTRATION OF PROGRAM FUNDS.

Subpart 1.

General.

Following receipt of grant funds from the state board, a district is responsible for administration of the funds in accordance with Minnesota Statutes, chapter 103C, parts 8400.0050 to 8400.1900, program policies, and all other applicable laws. All funds allocated to districts must be used for the purposes designated by the state board.

Subp. 2.

Maximum cost-share rate.

Prior to considering any applications from land occupiers for cost-share assistance, the district board shall establish cost-share rates for conservation practices to be installed under the program, up to the maximum rates established by the state board.

Subp. 4.

Criteria for district board review.

The district board shall use the factors in items A to D to determine practice eligibility and to review applications for conservation practice funding.

A.

The application must be signed by the land occupier and the landowner, if different, indicating their agreement to:

(1)

grant the district's representatives access to the parcel where the conservation practice will be located;

(2)

obtain all permits required in conjunction with the installation and establishment of the practice prior to starting construction of the practice; and

(3)

be responsible for operation and maintenance of conservation practices applied under this program according to an operation and maintenance plan prepared or approved by a district technical representative or the district's delegate.

B.

Costs to repair damage to conservation practices installed with state cost-share dollars are eligible if the damage was caused by reasons beyond the control of the land occupier.

C.

If the practice has fully met or exceeded its designed effective life, the cost to reconstruct the practice is eligible for cost-share assistance.

D.

Conservation practices where construction has begun prior to district approval are ineligible for financial assistance. The board may waive this requirement for emergency needs.

Subp. 5.

Entering into contract.

After review of practice eligibility, the district board, or its delegate, shall approve or deny the application. If the application is approved, the district board, or its delegate, may enter into a contract with the land occupier.

8400.1650 RECORDING CONSERVATION PRACTICES.

When a district board, or its delegate, determines that long-term maintenance of a conservation practice is desirable, the board, or its delegate, may require that maintenance be made a covenant upon the land for the effective life of the conservation practice. A covenant under this part shall be construed in the same manner as a conservation restriction under Minnesota Statutes, section 84.65.

8400.1700 MAINTENANCE.

Subpart 1.

Land occupier maintenance responsibilities.

The land occupier is responsible for operation and maintenance of conservation practices applied under this program to ensure that their conservation objective is met and the effective life is achieved. Should the land occupier fail to maintain the conservation practices during their effective life, the land occupier is liable to the district for up to 150 percent of financial assistance received to install and establish the conservation practice. The land occupier is not liable for cost-share assistance received if the failure was caused by reasons beyond the land occupier's control, or if conservation practices are applied at the land occupier's expense which provide equivalent protection of the soil and water resources.

Subp. 2.

Reapplication of conservation practices.

In no case shall a district provide cost-share assistance to a land occupier for the reapplication of conservation practices which were removed by the land occupier during their effective life or that failed due to improper maintenance.

8400.1750 PRACTICE SITE INSPECTIONS.

The district or the district's delegate shall conduct site inspections of conservation practices installed with cost-share funds to determine if the land occupier is in compliance with the operation and maintenance requirements under part 8400.1700 and the policy, guidelines, and requirements of the state board.

8400.1800 APPEALS.

Land occupiers may appeal a district's action within 60 days of receiving notice of the action by submitting a written request to the district board asking the board to reconsider its decision. Should the land occupier and the district board reach an impasse, the land occupier may petition to appeal the district board's decision to the state board within 60 days of receiving notice of the district board's final decision. The state board or its executive director, as delegated, shall review and grant the petition, unless it is deemed without sufficient merit, within 30 days of the receipt of the petition. The state board shall make its decision on the appeal, if granted, within 60 days of a hearing date. The state board's decision may uphold, remand, reverse, or amend the decision of the district board.

8400.1900 REPORTS TO STATE BOARD.

For the purpose of reporting and monitoring the progress of the program and use of funds, each district shall submit an accomplishments report according to the guidelines and requirements established by the state board.