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Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1989 

                        CHAPTER 354-S.F.No. 470 
           An act relating to environment; regulating municipal 
          wastewater treatment funding; amending Minnesota 
          Statutes 1988, sections 116.18, subdivisions 3a and 
          3b; 446A.02, subdivision 4; 446A.07, subdivision 8; 
          and 446A.12, by adding a subdivision.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1988, section 116.18, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [STATE INDEPENDENT GRANTS PROGRAM.] (a) The 
public facilities authority must adopt the objective of 
maintaining financial assistance to municipalities that the 
agency has listed on its annual municipal project list of 
approximately 50 percent of the eligible cost of construction 
for municipalities with populations over 25,000 and 80 percent 
of the eligible cost for municipalities with populations of 
25,000 or less.  Financial assistance may be provided by the 
public facilities authority through a combination of low 
interest loans under the state revolving fund under chapter 
446A, independent state grants, and other financial assistance 
available to the municipality.  The Minnesota public facilities 
authority may award independent grants for projects certified by 
the state pollution control commissioner for 50 35 percent or, 
if the population of the municipality is 25,000 or less, 80 65 
percent of the eligible cost of construction.  These grants may 
be awarded in separate steps for planning and design in addition 
to actual construction.  Until December 31, 1990, Not more 
than 20 percent $2,000,000 of the total amount of grants awarded 
under this subdivision in any single fiscal year may be awarded 
to a single grantee.  
    (b) Up to ten percent $1,000,000 of the money to be awarded 
as grants under this subdivision in any single fiscal year shall 
be set aside for municipalities having substantial economic 
development projects that cannot come to fruition without 
municipal wastewater treatment improvements.  The agency shall 
forward its municipal needs list to the authority at the 
beginning of each fiscal year, and the authority shall review 
the list and identify those municipalities having substantial 
economic development projects.  After the first 90 percent of 
the total available money is allocated to municipalities in 
accordance with agency priorities, the set-aside shall be used 
by the authority to award grants to remaining municipalities 
that have been identified.  
    (c) Grants may also be awarded under this subdivision to 
reimburse municipalities willing to proceed with projects and be 
reimbursed in a subsequent year conditioned upon appropriation 
of sufficient money under subdivision 1 for that year at the 
grant percentage determined in paragraph (a).  
    (d) A municipality that applies for a state independent 
grant to be reimbursed for a project must receive an additional 
five percent of the total eligible cost of construction beyond 
the normal percentage to which the municipality is entitled 
under paragraph (a).  Municipalities that entered into an intent 
to award agreement with the agency under paragraph (c), in the 
state fiscal years 1985 to 1988, will be reimbursed at 55 
percent or, if the population of the municipality is 25,000 or 
less, 85 percent of the eligible cost of construction.  
    Sec. 2.  Minnesota Statutes 1988, section 116.18, 
subdivision 3b, is amended to read: 
    Subd. 3b.  [CAPITAL COST COMPONENT GRANT.] (a) The 
definitions of "capital cost component," "capital cost component 
grant," "service fee," "service contract," and "private vendor" 
in section 471A.02 apply to this subdivision.  
    (b) Beginning in fiscal year 1989, up to $1,500,000 of the 
money to be awarded as grants under subdivision 3a in any single 
fiscal year may be set aside for the award of capital cost 
component grants to municipalities on the municipal needs list 
for part of the capital cost component of the service fee under 
a service contract for a term of at least 20 years with a 
private vendor for the purpose of constructing and operating 
wastewater treatment facilities.  
    (c) The amount granted to a municipality shall be 50 
percent of the average total eligible costs of municipalities of 
similar size recently awarded state and federal grants under the 
provisions of subdivisions 2a and 3a and the Federal Water 
Pollution Control Act, United States Code, title 33, sections 
1281 to 1289 1299.  Federal and state eligibility requirements 
for determining the amount of grant dollars to be awarded to a 
municipality are not applicable to municipalities awarded 
capital cost component grants.  Federal and state eligibility 
requirements for determining which cities qualify for state and 
federal grants are applicable, except as provided in this 
subdivision.  
    (d) Except as provided in this subdivision, municipalities 
receiving capital cost component grants shall not be required to 
comply with federal and state regulations regarding facilities 
planning and procurement contained in sections 116.16 to 116.18, 
except those necessary to issue a National Pollutant Discharge 
Elimination System permit or state disposal system permit and 
those necessary to assure that the proposed facilities are 
reasonably capable of meeting the conditions of the permit over 
20 years.  The municipality and the private vendor shall be 
parties to the permit.  Municipalities receiving capital cost 
component grants may also be exempted by rules of the agency 
from other state and federal regulations relating to the award 
of state and federal grants for wastewater treatment facilities, 
except those necessary to protect the state from fraud or misuse 
of state funds.  
    (e) Funds shall be distributed from the set-aside to 
municipalities that apply for the funds in accordance with these 
provisions in the order of their ranking on the municipal needs 
list.  
    (f) The authority shall award capital cost component grants 
to municipalities selected by the state pollution control 
commissioner upon certification by the state pollution control 
commissioner that the municipalities' projects and applications 
have been reviewed and approved in accordance with this 
subdivision and agency rules adopted under paragraph (g).  
    (g) The agency shall adopt permanent rules to provide for 
the administration of grants awarded under this subdivision.  
    (h) The commissioner of trade and economic development may 
adopt rules containing procedures for administration of the 
authority's duties as set forth in paragraph (f).  
    Sec. 3.  Minnesota Statutes 1988, section 446A.02, 
subdivision 4, is amended to read: 
    Subd. 4.  [FEDERAL WATER POLLUTION CONTROL ACT.] "Federal 
Water Pollution Control Act" means the Federal Water Pollution 
Control Act, as amended, United States Code, title 33, 
sections 1281 to 1299 1251 et seq. 
    Sec. 4.  Minnesota Statutes 1988, section 446A.07, 
subdivision 8, is amended to read: 
    Subd. 8.  [OTHER USES OF REVOLVING FUND.] The water 
pollution control revolving fund may be used as provided in 
title VI of the Federal Water Pollution Control Act, including 
the following uses: 
    (1) to buy or refinance the debt obligation of governmental 
units for treatment works where debt was incurred and 
construction begun after March 7, 1985, at or below market 
rates; 
    (2) to guarantee or purchase insurance for local 
obligations to improve credit market access or reduce interest 
rates; 
    (3) to provide a source of revenue or security for the 
payment of principal and interest on revenue or general 
obligation bonds issued by the authority if the bond proceeds 
are deposited in the fund; 
    (4) to provide loan guarantees for similar revolving funds 
established by a governmental unit other than state agencies; 
    (5) to earn interest on fund accounts; and 
    (6) to pay the reasonable costs incurred by the authority 
and the agency of administering the fund and conducting 
activities required under the Federal Water Pollution Control 
Act, including water quality management planning under section 
205(j) of the act and water quality standards continuing 
planning under section 303(e) of the act. 
    Amounts spent under clause (6) may not exceed the amount 
allowed under the Federal Water Pollution Control Act.  Five 
percent of the revolving loan fund repayments may be used by the 
agency and The authority may assess a service fee of up to five 
percent of revolving loan fund repayments for use by the agency 
and the authority for the purposes listed in clause (6). 
    Sec. 5.  Minnesota Statutes 1988, section 446A.12, is 
amended by adding a subdivision to read: 
    Subd. 5.  [EXEMPTION.] The notes and bonds of the authority 
are not subject to section 16B.06. 
    Sec. 6.  [REIMBURSEMENT OF CERTAIN MUNICIPAL WASTEWATER 
TREATMENT PLANTS.] 
    Subdivision 1.  [APPLICATION.] (a) Municipalities that 
constructed wastewater treatment plants between the years of 
1985 and 1988, paid the entire cost of the project with local 
funds, and elected to not remain on the reimbursement list may 
apply to the commissioner of the pollution control agency to be 
placed on the reimbursement list.  A municipality must apply to 
be on the list by January 15, 1990, or the opportunity to apply 
is terminated.  A municipality submitting an application to be 
placed on the list must provide the commissioner of the 
pollution control agency with the planning, contracting, 
construction, and operating records of the project as requested 
by the commissioner.  
    (b) The commissioner of the pollution control agency must 
compile a list of the municipalities that make application under 
paragraph (a) and report the list to the chairs of the house of 
representatives and senate environment and natural resources 
committees by February 1, 1990.  The commissioner's report to 
the legislature must indicate where the projects met or differed 
from the requirements of projects constructed under the state 
loan program. 
    Subd. 2.  [LEGISLATIVE APPROVAL REQUIRED.] Municipalities 
applying to be placed on the reimbursement list may not be 
placed on the list without legislative approval.  
    Sec. 7.  [EFFECTIVE DATE.] 
    Sections 1 to 6 are effective the day following final 
enactment. 
    Presented to the governor May 30, 1989 
    Signed by the governor June 1, 1989, 11:25 p.m.