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HF 1718

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2021 04:07pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/01/2021

Current Version - as introduced

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A bill for an act
relating to water; modifying water use fees; creating the soil and water conservation
district account; transferring and appropriating money; amending Minnesota
Statutes 2020, sections 103G.27; 103G.271, subdivision 6; proposing coding for
new law in Minnesota Statutes, chapter 103C.

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

Section 1.

new text begin [103C.302] SOIL AND WATER CONSERVATION DISTRICT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin The soil and water conservation district account
is created in the special revenue fund. Transfers from the water management account under
section 103G.27, subdivision 3, and other receipts must be deposited in the account. Interest
earned on money in the account accrues to the account.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin Money in the account may only be used to provide financial assistance
to soil and water conservation districts.
new text end

Sec. 2.

Minnesota Statutes 2020, section 103G.27, is amended to read:


103G.27 WATER MANAGEMENT ACCOUNT.

Subdivision 1.

Account established; sources.

The water management account is created
in the natural resources fund in the state treasury. Revenues collected from permit application
fees, water use fees, field inspection fees, penalties, and other receipts according to sections
103G.271 and 103G.301 deleted text beginshalldeleted text endnew text begin mustnew text end be deposited in the account. Interest earned on money
in the account accrues to the account.

Subd. 2.

Purposes of account.

new text beginExcept as provided in subdivision 3, new text endmoney in the water
management account may be spent only for the costs associated with administering this
chapter.

new text begin Subd. 3. new text end

new text begin Transfer. new text end

new text begin Each fiscal year, the commissioner of management and budget must
transfer $12,000,000 from the water management account to the soil and water conservation
district account under section 103C.302.
new text end

Sec. 3.

Minnesota Statutes 2020, section 103G.271, subdivision 6, is amended to read:


Subd. 6.

Water-use permit; processing fee.

(a) Except as described in paragraphs (b)
to (g), a water-use permit processing fee must be prescribed by the commissioner in
accordance with the schedule of fees in this subdivision for each water-use permit in force
at any time during the year. Fees collected under this paragraph are credited to the water
management account in the natural resources fund. The schedule is as follows, with the
stated fee in each clause applied to the total amount appropriated:

(1) deleted text begin$140deleted text endnew text begin $490new text end for amounts not exceeding 50,000,000 gallons per year;

(2) deleted text begin$3.50deleted text endnew text begin $12.25new text end per 1,000,000 gallons for amounts greater than 50,000,000 gallons but
less than 100,000,000 gallons per year;

(3) deleted text begin$4deleted text endnew text begin $14new text end per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
than 150,000,000 gallons per year;

(4) deleted text begin$4.50deleted text endnew text begin $15.75new text end per 1,000,000 gallons for amounts greater than 150,000,000 gallons
but less than 200,000,000 gallons per year;

(5) deleted text begin$5deleted text endnew text begin $17.50new text end per 1,000,000 gallons for amounts greater than 200,000,000 gallons but
less than 250,000,000 gallons per year;

(6) deleted text begin$5.50deleted text endnew text begin $19.25new text end per 1,000,000 gallons for amounts greater than 250,000,000 gallons
but less than 300,000,000 gallons per year;

(7) deleted text begin$6deleted text endnew text begin $21new text end per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
than 350,000,000 gallons per year;

(8) deleted text begin$6.50deleted text endnew text begin $22.75new text end per 1,000,000 gallons for amounts greater than 350,000,000 gallons
but less than 400,000,000 gallons per year;

(9) deleted text begin$7deleted text endnew text begin $24.50new text end per 1,000,000 gallons for amounts greater than 400,000,000 gallons but
less than 450,000,000 gallons per year;

(10) deleted text begin$7.50deleted text endnew text begin $26.25new text end per 1,000,000 gallons for amounts greater than 450,000,000 gallons
but less than 500,000,000 gallons per year; and

(11) deleted text begin$8deleted text endnew text begin $28new text end per 1,000,000 gallons for amounts greater than 500,000,000 gallons per
year.

(b) For once-through cooling systems, a water-use processing fee must be prescribed
by the commissioner in accordance with the following schedule of fees for each water-use
permit in force at any time during the year:

(1) for nonprofit corporations and school districts, deleted text begin$200deleted text endnew text begin $700new text end per 1,000,000 gallons;
and

(2) for all other users, deleted text begin$420deleted text endnew text begin $1,470new text end per 1,000,000 gallons.

(c) The fee is payable based on the amount of water appropriated during the year and,
except as provided in paragraph (f), the minimum fee is deleted text begin$100deleted text endnew text begin $350new text end.

(d) For water-use processing fees other than once-through cooling systems:

(1) the fee for a city of the first class may not exceed deleted text begin$250,000deleted text endnew text begin $875,000new text end per year;

(2) the fee for other entities for any permitted use may not exceed:

(i) deleted text begin$60,000deleted text endnew text begin $210,000new text end per year for an entity holding three or fewer permits;

(ii) deleted text begin$90,000deleted text endnew text begin $315,000new text end per year for an entity holding four or five permits; or

(iii) deleted text begin$300,000deleted text endnew text begin $1,050,000new text end per year for an entity holding more than five permits;

(3) the fee for agricultural irrigation may not exceed deleted text begin$750deleted text endnew text begin $2,625new text end per year;

(4) the fee for a municipality that furnishes electric service and cogenerates steam for
home heating may not exceed deleted text begin$10,000deleted text endnew text begin $35,000new text end for its permit for water use related to the
cogeneration of electricity and steam;

(5) the fee for a facility that temporarily diverts a water of the state from its natural
channel to produce hydroelectric or hydromechanical power may not exceed deleted text begin$5,000deleted text endnew text begin $17,500new text end
per year. A permit for such a facility does not count toward the number of permits held by
an entity as described in this paragraph; and

(6) no fee is required for a project involving the appropriation of surface water to prevent
flood damage or to remove flood waters during a period of flooding, as determined by the
commissioner.

(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of ten
percent per month calculated from the original due date must be imposed on the unpaid
balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
governmental agency holding a water appropriation permit.

(f) The minimum water-use processing fee for a permit issued for irrigation of agricultural
land is deleted text begin$20deleted text endnew text begin $70new text end for years in which:

(1) there is no appropriation of water under the permit; or

(2) the permit is suspended for more than seven consecutive days between May 1 and
October 1.

(g) The commissioner shall waive the water-use permit fee for installations and projects
that use storm water runoff or where public entities are diverting water to treat a water
quality issue and returning the water to its source without using the water for any other
purpose, unless the commissioner determines that the proposed use adversely affects surface
water or groundwater.

(h) A surcharge of deleted text begin$30deleted text endnew text begin $105new text end per million gallons in addition to the fee prescribed in
paragraph (a) shall be applied to the volume of water used in each of the months of June,
July, and August that exceeds the volume of water used in January for municipal water use,
irrigation of golf courses, and landscape irrigation. The surcharge for municipalities with
more than one permit shall be determined based on the total appropriations from all permits
that supply a common distribution system.

Sec. 4. new text beginAPPROPRIATION.
new text end

new text begin $12,000,000 in fiscal year 2022 and $12,000,000 in fiscal year 2023 are appropriated
from the soil and water conservation district account to the Board of Water and Soil
Resources for payments to soil and water conservation districts for the purposes of Minnesota
Statutes, sections 103C.321 and 103C.331. From this appropriation, each soil and water
conservation district must receive an increase in its base funding of $100,000 per year.
Money remaining after the base increase is available for grants to soil and water conservation
districts as determined by the board based on county allocations to soil and water conservation
districts and amount of private land and public waters. The board and other agencies may
reduce the amount of grants to a county by an amount equal to any reduction in the county's
allocation to a soil and water conservation district from the county's previous year allocation
when the board determines that the reduction was disproportionate. The board may use up
to one percent for the administration of payments.
new text end