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SF 762

4th Unofficial Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1                                        A bill for an act
1.2     relating to the environment; modifying provisions for cost-sharing contracts 
1.3     for erosion control and water management; creating the Clean Water Legacy 
1.4     Act; providing authority, direction, and funding to achieve and maintain water 
1.5     quality standards according to section 303(d) of the federal Clean Water Act;
1.6     amending Minnesota Statutes 2004, sections 103C.501, subdivision 5; 446A.051; 
1.7     proposing coding for new law as Minnesota Statutes, chapter 114D.

1.9         Section 1. Minnesota Statutes 2004, section 103C.501, subdivision 5, is amended to 
1.10    read:
1.11        Subd. 5. Contracts by districts. (a) A district board may contract on a cost-share 
1.12    basis to furnish financial aid to a land occupier or to a state agency for permanent systems 
1.13    for erosion or sedimentation control or water quality improvement that are consistent with 
1.14    the district's comprehensive and annual work plans.
1.15    (b) The duration of the contract may must, at a minimum, be the time required to 
1.16    complete the planned systems. A contract must specify that the land occupier is liable 
1.17    for monetary damages, not to exceed the and penalties in an amount of up to 150 percent 
1.18    of the financial assistance received from the district, for failure to complete the systems 
1.19    or practices in a timely manner or maintain the systems or practices as specified in the 
1.20    contract.
1.21    (c) A contract may provide for cooperation or funding with federal agencies. A land 
1.22    occupier or state agency may provide the cost-sharing portion of the contract through 
1.23    services in kind.
1.24    (d) The state board or the district board may not furnish any financial aid for 
1.25    practices designed only to increase land productivity.
2.1     (e) When a district board determines that long-term  maintenance of a system or 
2.2     practice is desirable, the board may  require that such maintenance be made a covenant 
2.3     upon the land for the effective life of the practice.  A covenant under this  subdivision shall 
2.4     be construed in the same manner as a  conservation restriction under section 84.65.

2.5         Sec. 2. [114D.05] CITATION.
2.6     This chapter may be cited as the "Clean Water Legacy Act."

2.7         Sec. 3. [114D.10] LEGISLATIVE PURPOSE AND FINDINGS.
2.8         Subdivision 1. Purpose. The purpose of the Clean Water  Legacy Act is to protect, 
2.9     restore, and preserve the quality of  Minnesota's surface waters by providing authority, 
2.10    direction,  and resources to achieve and maintain water quality standards for surface waters 
2.11    as required by section 303(d) of the federal Clean Water Act, United States Code, title 33, 
2.12    section 1313(d), and applicable federal regulations.
2.13        Subd. 2. Findings. The legislature finds that: 
2.14    (1) there is a close link between protecting, restoring, and preserving the quality of 
2.15    Minnesota's surface waters and the ability to develop the state's economy, enhance its 
2.16    quality of life, and protect its human and natural resources; 
2.17    (2) achieving the state's water quality goals will require long-term commitment and 
2.18    cooperation by all state and local agencies, and other public and private organizations 
2.19    and individuals, with responsibility and authority for water management, planning, and 
2.20    protection; and 
2.21    (3) all persons and organizations whose activities affect the quality of waters, 
2.22    including point and nonpoint sources of pollution, have a responsibility to participate in 
2.23    and support efforts to achieve the state's water quality goals. 

2.24        Sec. 4. [114D.15] DEFINITIONS.
2.25        Subdivision 1. Application. The definitions provided in this section apply to the 
2.26    terms used in this chapter.
2.27        Subd. 2. Citizen monitoring. "Citizen monitoring" means monitoring of surface 
2.28    water quality by individuals and nongovernmental organizations that is consistent with 
2.29    section 115.06, subdivision 4, and Pollution Control Agency guidance on monitoring 
2.30    procedures, quality assurance protocols, and data  management.
2.31        Subd. 3. Clean Water Council. "Clean Water Council" or "council" means the 
2.32    Clean Water Council created pursuant to section 114D.30, subdivision 1.
3.1         Subd. 4. Federal TMDL requirements. "Federal TMDL  requirements" means the 
3.2     requirements of section 303(d) of the Clean Water Act, United States Code, title 33, 
3.3     section 1313(d), and associated regulations and guidance.
3.4         Subd. 5. Impaired water. "Impaired water" means surface water that does not 
3.5     meet applicable water quality standards.
3.6         Subd. 6. Public agencies. "Public agencies" means all state agencies, political 
3.7     subdivisions, joint powers organizations, and special purpose units of government with 
3.8     authority, responsibility, or expertise in protecting, restoring, or preserving the quality of 
3.9     surface waters, managing or planning for surface waters and related lands, or financing 
3.10    waters-related projects. Public agencies includes the University of Minnesota and other 
3.11    public education institutions. 
3.12        Subd. 7. Restoration. "Restoration" means actions, including effectiveness 
3.13    monitoring, that are taken to achieve and maintain water quality standards for impaired 
3.14    waters in accordance with a TMDL that has been approved by the United States 
3.15    Environmental Protection Agency under federal TMDL requirements. 
3.16        Subd. 8. Surface waters. "Surface waters" means waters of the state as defined 
3.17    in section 115.01, subdivision 22, excluding groundwater as defined in section 115.01, 
3.18    subdivision  6.
3.19        Subd. 9. Third-party TMDL. "Third-party TMDL" means a TMDL by the 
3.20    Pollution Control Agency that is developed in whole or in part by a qualified public entity 
3.21    other than the Pollution Control Agency consistent with the goals, policies, and priorities 
3.22    in section 114D.20. 
3.23        Subd. 10. Total maximum daily load or TMDL. "Total maximum daily load" or 
3.24    "TMDL" means a scientific study that contains a calculation of the maximum amount of a 
3.25    pollutant that may be introduced into a surface water and still ensure that applicable 
3.26    water quality standards for that water are restored and maintained. A TMDL also is 
3.27    the sum of the pollutant load  allocations for all sources of the pollutant, including a 
3.28    wasteload allocation for point sources, a load allocation for  nonpoint sources and natural 
3.29    background, an allocation for future growth of point and nonpoint sources, and a margin 
3.30    of safety to account for uncertainty about the relationship between pollutant loads and 
3.31    the quality of the receiving surface water. "Natural background" means characteristics of 
3.32    the water body resulting from the multiplicity of factors in nature, including climate and 
3.33    ecosystem dynamics, that affect the physical, chemical, or biological conditions in a water 
3.34    body, but does not include measurable and distinguishable pollution that is  attributable to 
3.35    human activity or influence. A TMDL must take into account seasonal variations. 
4.1         Subd. 11. TMDL implementation plan. "TMDL implementation plan" means a 
4.2     document detailing restoration activities needed to meet the approved TMDL's pollutant 
4.3     load allocations for point and nonpoint sources.
4.4         Subd. 12. Water quality standards. "Water quality standards" for Minnesota 
4.5     surface waters are found in Minnesota Rules, chapters 7050 and 7052.

4.6         Sec. 5. [114D.20] IMPLEMENTATION; COORDINATION; GOALS; 
4.8         Subdivision 1. Coordination and cooperation. In implementing this chapter, 
4.9     public agencies and private entities shall take into consideration the relevant provisions of 
4.10    local and other applicable water management, conservation, land use, land management, 
4.11    and development plans and programs. Public  agencies with authority for local water 
4.12    management, conservation, land use, land management, and development plans shall 
4.13    take into consideration the manner in which their plans  affect the implementation of 
4.14    this chapter. Public agencies shall identify opportunities to participate and assist in the 
4.15    successful implementation of this chapter, including the funding or technical assistance 
4.16    needs, if any, that may be necessary. In implementing this chapter, public agencies shall 
4.17    endeavor to engage the cooperation of organizations and individuals whose activities 
4.18    affect the quality of surface waters, including point and nonpoint sources of pollution, and 
4.19    who have authority and responsibility for water management, planning, and protection.   To 
4.20    the extent practicable, public agencies shall endeavor to enter into formal and informal 
4.21    agreements and arrangements with federal agencies and departments to jointly utilize 
4.22    staff and educational, technical, and financial resources to deliver programs or conduct 
4.23    activities to achieve the intent of this chapter, including efforts under the federal Clean 
4.24    Water Act and other federal farm and soil and water conservation programs. Nothing in 
4.25    this chapter affects the application of silvicultural exemptions under any federal, state, or 
4.26    local law or requires silvicultural practices more stringent than those recommended in 
4.27    the timber harvesting and forest management guidelines adopted by the Minnesota Forest 
4.28    Resources Council under section 89A.05.
4.29        Subd. 2. Goals for implementation. The following goals must guide the 
4.30    implementation of this chapter: 
4.31    (1) to identify impaired waters in accordance with federal TMDL requirements 
4.32    within ten years after the effective date of this section and thereafter to ensure continuing 
4.33    evaluation of surface waters for impairments; 
4.34    (2) to submit TMDL's to the United States Environmental Protection Agency for all 
4.35    impaired waters in a timely manner in accordance with federal TMDL requirements; 
5.1     (3) to set a reasonable time for implementing restoration of each identified impaired 
5.2     water; 
5.3     (4) to provide assistance and incentives to prevent waters from becoming impaired 
5.4     and to improve the quality of waters which are listed as impaired but have no approved 
5.5     TMDL addressing the impairment; 
5.6     (5) to promptly seek the delisting of waters from the impaired waters list when those 
5.7     waters are shown to achieve the designated uses applicable to the waters; and 
5.8     (6) to achieve compliance with federal Clean Water Act requirements in Minnesota.
5.9         Subd. 3. Implementation policies. The following policies must guide the 
5.10    implementation of this chapter: 
5.11    (1) develop regional and watershed TMDL's and TMDL implementation plans, and 
5.12    TMDL's and TMDL implementation plans for multiple pollutants, where reasonable and 
5.13    feasible; 
5.14    (2) maximize use of available organizational, technical, and financial resources to 
5.15    perform sampling, monitoring, and other activities to identify impaired waters, including 
5.16    use of citizen monitoring and citizen monitoring data used by the Pollution Control 
5.17    Agency in assessing water quality must meet the requirements in Appendix D of the 
5.18    Volunteer Surface Water Monitoring Guide, Minnesota Pollution Control Agency (2003); 
5.19    (3) maximize opportunities for restoration of impaired waters, by prioritizing and 
5.20    targeting of available programmatic, financial, and technical resources and by providing 
5.21    additional state resources to complement and leverage available resources; 
5.22    (4) use existing regulatory authorities to achieve restoration for point and nonpoint 
5.23    sources of pollution where applicable, and promote the development and use of effective 
5.24    nonregulatory measures to address pollution sources for which regulations are not 
5.25    applicable; 
5.26    (5) use restoration methods that have a demonstrated effectiveness in reducing 
5.27    impairments and provide the greatest long-term positive impact on water quality protection 
5.28    and improvement and related conservation benefits while incorporating innovative 
5.29    approaches on a case-by-case basis; 
5.30    (6) identify for the legislature any innovative approaches that may strengthen or 
5.31    complement existing programs; 
5.32    (7) identify and encourage implementation of measures to prevent waters from 
5.33    becoming impaired and to improve the quality of waters that are listed as impaired but 
5.34    have no approved TMDL addressing the impairment using the best available data and 
5.35    technology, and establish and report outcome-based performance measures that monitor 
5.36    the progress and effectiveness of protection and restoration measures; and
6.1     (8) monitor and enforce cost-sharing contracts and impose monetary damages in an 
6.2     amount up to 150 percent of the financial assistance received for failure to comply. 
6.3         Subd. 4. Priorities for identifying impaired waters. The Pollution Control 
6.4     Agency, in accordance with federal TMDL requirements, shall set priorities for identifying 
6.5     impaired waters, giving consideration to: 
6.6     (1) waters where impairments would pose the greatest potential risk to human or 
6.7     aquatic health; and 
6.8     (2) waters where data developed through public agency or citizen monitoring or 
6.9     other means, provides scientific evidence that an impaired condition exists. 
6.10        Subd. 5. Priorities for preparation of TMDL's. The Clean Water Council shall 
6.11    recommend priorities for scheduling and preparing TMDL's and TMDL implementation 
6.12    plans, taking into account the severity of the impairment, the designated uses of those 
6.13    waters, and other applicable federal TMDL requirements. In recommending priorities, the 
6.14    council shall also give consideration to waters and watersheds: 
6.15    (1) with impairments that pose the greatest potential risk to human health; 
6.16    (2) with impairments that pose the greatest potential risk to threatened or endangered 
6.17    species; 
6.18    (3) with impairments that pose the greatest potential risk to aquatic health; 
6.19    (4) where other public agencies and participating organizations and individuals, 
6.20    especially local, basinwide, watershed, or regional agencies or organizations, have 
6.21    demonstrated readiness to assist in carrying out the responsibilities, including availability 
6.22    and organization of human, technical, and financial resources necessary to undertake 
6.23    the work; and 
6.24    (5) where there is demonstrated coordination and cooperation among cities, 
6.25    counties, watershed districts, and soil and water conservation districts in planning and 
6.26    implementation of activities that will assist in carrying out the responsibilities. 
6.27        Subd. 6. Priorities for restoration of impaired waters. In implementing 
6.28    restoration of impaired waters, in addition to the priority considerations in subdivision 5, 
6.29    the Clean Water Council shall give priority in its recommendations for restoration funding 
6.30    from the clean water legacy account to restoration projects that: 
6.31    (1) coordinate with and utilize existing local authorities and infrastructure for 
6.32    implementation; 
6.33    (2) can be implemented in whole or in part by providing  support for existing or 
6.34    ongoing restoration efforts; 
6.35    (3) most effectively leverage other sources of restoration funding, including federal, 
6.36    state, local, and private sources of funds; 
7.1     (4) show a high potential for early restoration and delisting based upon scientific 
7.2     data developed through public agency or citizen monitoring or other means; and
7.3     (5) show a high potential for long-term water quality and related conservation 
7.4     benefits.
7.5         Subd. 7. Priorities for funding prevention actions. The Clean Water Council 
7.6     shall apply the priorities applicable under subdivision 6, as far as practicable, when 
7.7     recommending priorities for funding actions to prevent waters from becoming impaired 
7.8     and to improve the quality of waters that are listed as impaired but have no approved 
7.9     TMDL. 

7.11        Subdivision 1. General duties and authorities. (a) The Pollution Control Agency, 
7.12    in accordance with federal TMDL requirements, shall: 
7.13    (1) identify impaired waters and propose a list of the waters for review and approval 
7.14    by the United States Environmental Protection Agency;
7.15    (2) develop and approve TMDL's for listed impaired waters and submit the approved 
7.16    TMDL's to the United State Environmental Protection Agency for final approval; and
7.17    (3) propose to delist waters from the Environmental Protection Agency impaired 
7.18    waters list.
7.19    (b) A TMDL must include a statement of the facts and scientific data supporting the 
7.20    TMDL and a list of potential implementation options, including a range of estimates of 
7.21    the cost of implementation and individual wasteload data for any point sources addressed 
7.22    by the TMDL.
7.23    (c) The implementation information need not be sent to the United States 
7.24    Environmental Protection Agency for review and approval.
7.25        Subd. 2. Administrative procedures for TMDL approval. The approval of a 
7.26    TMDL by the Pollution Control Agency is a final decision of the agency for purposes of 
7.27    section 115.05, and is subject to the contested case procedures of sections 14.57 to 14.62 in 
7.28    accordance with agency procedural rules.  The agency shall not submit an approved TMDL 
7.29    to the United States Environmental Protection Agency until the time for commencing 
7.30    judicial review has run or the judicial review process has been completed. A TMDL is not 
7.31    subject to the  rulemaking requirements of chapter 14, including section 14.386.
7.32        Subd. 3. TMDL submittal requirement. Before submitting a TMDL to the United 
7.33    States Environmental Protection Agency, the Pollution Control Agency shall comply with 
7.34    the notice and procedure requirements of this section.  If a contested case proceeding is not 
7.35    required for a proposed TMDL, the agency may submit the TMDL to the United States 
8.1     Environmental Protection Agency no earlier than 30 days after the notice required in 
8.2     subdivision 4. If a contested case proceeding is required for a TMDL, the TMDL may be 
8.3     submitted to the United States Environmental Protection Agency after the contested case 
8.4     proceeding and appeal process is completed.
8.5         Subd. 4. TMDL notice; contents. The Pollution Control Agency shall give notice 
8.6     of its intention to submit a TMDL to the United States Environmental Protection Agency. 
8.7     The notice must be given by publication in the State Register and by United States mail to 
8.8     persons who have registered their names with the agency.  The notice must include either a 
8.9     copy of the proposed TMDL or an easily readable and understandable description of its 
8.10    nature and effect and an announcement of how free access to the proposed TMDL can 
8.11    be obtained.  In addition, the agency shall make reasonable efforts to notify persons or 
8.12    classes of persons who may be significantly affected by the TMDL by giving notice of 
8.13    its intention in newsletters, newspapers, or other publications, or through other means of 
8.14    communication.  The notice must include a statement informing the public: 
8.15    (1) that the public has 30 days in which to submit comment in support of or in 
8.16    opposition to the proposed TMDL and that comment is encouraged; 
8.17    (2) that each comment should identify the portion of the proposed TMDL addressed, 
8.18    the reason for the comment, and any change proposed; 
8.19    (3) of the manner in which persons must request a contested case proceeding on 
8.20    the proposed TMDL; 
8.21    (4) that the proposed TMDL may be modified if the modifications are supported by 
8.22    the data and views submitted; and 
8.23    (5) the date on which the 30-day comment period ends. 
8.24        Subd. 5. Third-party TMDL development. The Pollution Control Agency may 
8.25    enter into agreements with any qualified public agency setting forth the terms and 
8.26    conditions under which that entity is authorized to develop a third-party TMDL.  In 
8.27    determining whether the public agency is qualified to develop a third-party TMDL, the 
8.28    Pollution Control Agency shall consider  the technical and administrative qualifications of 
8.29    the public agency, cost,  and shall avoid any potential organizational conflict of interest, 
8.30    as defined in section 16C.02, subdivision 10a, of the public agency with respect to the 
8.31    development of the third-party TMDL.  A third-party TMDL is subject to modification 
8.32    and approval by the Pollution Control Agency, and must be approved by the Pollution 
8.33    Control Agency before it is submitted to the  United States Environmental Protection 
8.34    Agency.  The Pollution Control Agency shall only consider authorizing the development 
8.35    of third-party TMDL's consistent with the goals, policies, and priorities determined 
8.36    under section 114D.20.

9.1         Sec. 7. [114D.30] CLEAN WATER COUNCIL.
9.2         Subdivision 1. Creation; duties. A Clean Water Council is created to advise the 
9.3     Pollution Control Agency and other implementing public agencies on the administration 
9.4     and implementation of this chapter, and foster coordination and cooperation as described 
9.5     in section 114D.20, subdivision 1.  The council may also advise on the development 
9.6     of appropriate processes for expert scientific review as described in section 114D.35, 
9.7     subdivision 2.  The Pollution Control Agency shall provide administrative support for the 
9.8     council with the support of other member agencies.  The members of the council shall 
9.9     elect a chair from the nonagency members of the council.
9.10        Subd. 2. Membership; appointment. The governor must appoint the members of 
9.11    the council. The governor must appoint one person from each of the following agencies: 
9.12    the Department of Natural Resources, the Department of Agriculture, the Pollution 
9.13    Control Agency, and the Board of Water and Soil Resources. The governor must appoint 
9.14    18 additional nonagency members of the council as follows: 
9.15    (1) two members representing statewide farm organizations; 
9.16    (2) two members representing business organizations; 
9.17    (3) two members representing environmental organizations; 
9.18    (4) one member representing soil and water conservation districts; 
9.19    (5) one member representing watershed districts; 
9.20    (6) one member representing nonprofit organizations focused on improvement of 
9.21    Minnesota lakes or streams; 
9.22    (7) two members representing organizations of county governments; 
9.23    (8) two members representing organizations of city governments; 
9.24    (9) one member representing the Metropolitan Council established under section 
9.25    473.123;
9.26    (10) one member representing an organization of township governments;
9.27    (11) one member representing the interests of tribal governments; and
9.28    (12) two members representing statewide hunting organizations.
9.29    In making appointments, the governor must attempt to provide for geographic balance.
9.30        Subd. 3. Terms; compensation; removal. The initial terms of members 
9.31    representing state agencies and the Metropolitan Council expire on the first Monday in 
9.32    January, 2007. Thereafter, the terms of members representing the state agencies and the 
9.33    Metropolitan Council are four years and are coterminous with the governor. The terms 
9.34    of other members of the council shall be as provided in section 15.059, subdivision 2. 
9.35    Members may serve until their successors are appointed and qualify. Compensation and 
9.36    removal of council members is as provided in section 15.059, subdivisions 3 and 4. A 
10.1    vacancy on the council may be filled by the appointing authority provided in  subdivision 1 
10.2    for the remainder of the unexpired term.
10.3        Subd. 4. Implementation plan. The Clean Water Council shall prepare a plan for 
10.4    implementation of this chapter. The plan shall address general procedures and timeframes 
10.5    for implementing this chapter, and shall include a more specific implementation work plan 
10.6    for the next fiscal biennium and a framework for setting priorities to address impaired 
10.7    waters consistent with section 114D.45, subdivisions 2 to 7. The council shall issue the 
10.8    first implementation plan under this subdivision by December 1, 2006, and shall issue a 
10.9    revised work plan by December 1 of each even-numbered year thereafter.
10.10       Subd. 5. Recommendations on appropriation of funds. The  Clean Water Council 
10.11   shall recommend to the governor the manner in which money from the clean water 
10.12   legacy account should be appropriated for the purposes identified in section 114D.45, 
10.13   subdivision 3. The council's nonbinding recommendations must be consistent with the 
10.14   purposes, policies, goals, and priorities in sections 114D.05 to 114D.35. The council 
10.15   must recommend methods of ensuring that awards of grants, loans,  or other funds from 
10.16   the clean water legacy account specify the outcomes to be achieved as a result of the 
10.17   funding, and specify standards to hold the recipient accountable for achieving the desired 
10.18   outcomes. Expenditures from the account are subject to appropriation by the legislature.
10.19       Subd. 6. Biennial report to legislature. By December 1 of each even-numbered 
10.20   year, the council shall submit a report to the legislature on the activities for which money 
10.21   has been or will be spent for the current biennium, the activities for which money is 
10.22   recommended to be spent in the next biennium, and the impact on economic development 
10.23   of the implementation of the impaired waters program. The report due on December 
10.24   1, 2014, must include an evaluation of the progress made through June 30, 2014, in 
10.25   implementing this chapter, the need for funding of future implementation of those 
10.26   sections, and recommendations for the sources of funding. 

10.29       Subdivision 1. Public and stakeholder participation. Public agencies and private 
10.30   entities involved in the implementation of this chapter shall encourage participation by 
10.31   the public and stakeholders, including local citizens, landowners and managers, and 
10.32   public and private organizations, in the identification of impaired waters, in developing 
10.33   TMDL's, and in planning, priority setting, and implementing restoration of impaired 
10.34   waters. In particular, the Pollution Control Agency shall make reasonable efforts to 
10.35   provide timely information to the public and to stakeholders about impaired waters that 
11.1    have been identified by the agency. The agency shall seek broad and early public and 
11.2    stakeholder participation in scoping the activities necessary to develop a TMDL, including 
11.3    the scientific  models, methods, and approaches to be used in TMDL development, and to 
11.4    implement restoration pursuant to section 114D.15, subdivision 7.
11.5        Subd. 2. Expert scientific advice. The Clean Water Council and public agencies 
11.6    and private entities shall make use of available public and private expertise from 
11.7    educational, research, and technical organizations, including the University of Minnesota 
11.8    and other higher education institutions, to provide appropriate independent expert advice 
11.9    on models, methods, and  approaches used in identifying impaired waters, developing 
11.10   TMDL's, and implementing prevention and restoration. 
11.11       Subd. 3. Education. The Clean Water Council shall develop strategies for 
11.12   informing, educating, and encouraging the participation of citizens, stakeholders, 
11.13   and others regarding the identification of impaired waters, development of TMDL's, 
11.14   development of TMDL implementation plans, and implementation of restoration for 
11.15   impaired waters. Public agencies shall be  responsible for implementing the strategies. 

11.16       Sec. 9. [114D.45] CLEAN WATER LEGACY ACCOUNT.
11.17       Subdivision 1. Creation. The clean water legacy account is created as an account 
11.18   in the environmental fund.  Money in the account must be made available for the 
11.19   implementation of this chapter and section 446A.073, without supplanting or taking the 
11.20   place of any other funds which are currently available or may become available from any 
11.21   other source, whether federal, state, local, or private, for implementation of this chapter 
11.22   and section 446A.073.
11.23       Subd. 2. Sources of revenue. The following revenues must be deposited in the 
11.24   clean water legacy account:
11.25   (1) money transferred to the account; and 
11.26   (2) interest accrued on the account.
11.27       Subd. 3. Purposes. Subject to appropriation by the legislature, the clean water 
11.28   legacy account may be spent for the following purposes:
11.29   (1) to provide grants, loans, and technical assistance to public agencies and others 
11.30   who are participating in the process of identifying impaired waters, developing TMDL's, 
11.31   implementing restoration plans for impaired waters, and monitoring the effectiveness 
11.32   of restoration;
11.33   (2) to support measures to prevent waters from becoming impaired and to improve 
11.34   the quality of waters that are listed as impaired but have no approved TMDL addressing 
11.35   the impairment;
12.1    (3) to provide grants and loans for wastewater and storm water treatment projects 
12.2    through the Public Facilities Authority;
12.3    (4) to support the efforts of public agencies associated with individual sewage 
12.4    treatment systems and financial assistance for upgrading and replacing the systems; and 
12.5    (5) to provide funds to state agencies to carry out their responsibilities under this 
12.6    chapter.

12.7        Sec. 10. Minnesota Statutes 2004, section 446A.051, is amended to read:
12.9    The authority shall assist eligible governmental units in determining what grants or 
12.10   loans under sections  446A.06, and  446A.07, 446A.072, 446A.073,  and 446A.081 to apply 
12.11   for to finance projects and the manner in which the governmental unit will pay for its 
12.12   portion of the project cost. If a project is eligible for a grant under section 446A.073, the 
12.13   total grant shall not exceed the greater of the maximum amount from a single program or 
12.14   the amount the project could receive under section 446A.072. The authority shall review 
12.15   the proposed financing for each project certified by the agency to ascertain whether or 
12.16   not: (1) total financing of a project is assured; and (2) the governmental unit's financial 
12.17   plan to pay for its portion of the project cost is feasible. 

12.18       Sec. 11. EFFECTIVE DATE.
12.19   Sections 1 to 10 are effective the day following final enactment.