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

  

                         Laws of Minnesota 1992 

                        CHAPTER 601-H.F.No. 1453 
           An act relating to the environment; modifying 
          procedures for creating sanitary districts; requiring 
          governmental subdivisions to evaluate annually their 
          wastewater disposal system needs; establishing a 
          program of supplemental financial assistance for the 
          construction of municipal wastewater disposal systems; 
          expanding the authority of the public facilities 
          authority to set and collect fees; requiring a study 
          and report; authorizing bonds for the city of Cloquet 
          for a water line extension; allocating appropriations; 
          amending Minnesota Statutes 1990, sections 115.03, 
          subdivision 1; 115.19; 115.20, subdivisions 1, 2, 3, 
          4, 5, and 6; 446A.04, subdivision 5; and 446A.07, 
          subdivision 8; Minnesota Statutes 1991 Supplement, 
          section 103G.271, subdivision 6; Laws 1991, chapter 
          183, section 1; proposing coding for new law in 
          Minnesota Statutes, chapters 116; and 446A. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
103G.271, subdivision 6, is amended to read: 
    Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
described in paragraphs (b) to (f), a water use permit 
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) 0.05 cents per 1,000 gallons for the first 50,000,000 
gallons per year; 
    (2) 0.10 cents per 1,000 gallons for amounts greater than 
50,000,000 gallons but less than 100,000,000 gallons per year; 
    (3) 0.15 cents per 1,000 gallons for amounts greater than 
100,000,000 gallons but less than 150,000,000 gallons per year; 
and 
    (4) 0.20 cents per 1,000 gallons for amounts greater than 
150,000,000 gallons but less than 200,000,000 gallons per year; 
    (5) 0.25 cents per 1,000 gallons for amounts greater than 
200,000,000 gallons but less than 250,000,000 gallons per year; 
    (6) 0.30 cents per 1,000 gallons for amounts greater than 
250,000,000 gallons but less than 300,000,000 gallons per year; 
    (7) 0.35 cents per 1,000 gallons for amounts greater than 
300,000,000 gallons but less than 350,000,000 gallons per year; 
    (8) 0.40 cents per 1,000 gallons for amounts greater than 
350,000,000 gallons but less than 400,000,000 gallons per year; 
and 
     (9) 0.45 cents per 1,000 gallons for amounts greater than 
400,000,000 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: 
     (i) 5.0 cents per 1,000 gallons until December 31, 1991; 
     (ii) 10.0 cents per 1,000 gallons from January 1, 1992, 
until December 31, 1996; and 
     (iii) 15.0 cents per 1,000 gallons after January 1, 1997; 
and 
     (2) for all other users, 20 cents per 1,000 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 $50.  
     (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 
$175,000 per year; 
     (2) the fee for other entities for any permitted use may 
not exceed: 
     (i) $35,000 per year for an entity holding three or fewer 
permits; 
     (ii) $50,000 per year for an entity holding four or five 
permits; 
     (iii) $175,000 per year for an entity holding more than 
five permits; 
    (3) the fee for agricultural irrigation may not exceed $750 
per year; and 
    (4) the fee for a municipality that furnishes electric 
service and cogenerates steam for home heating may not exceed 
$10,000 for its permit for water use related to the cogeneration 
of electricity and steam.  
    (e) Failure to pay the fee is sufficient cause for revoking 
a permit.  A penalty of two 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 $10 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) For once-through systems fees payable after July 1, 
1993, at least 50 75 percent of the fee deposited in the general 
fund shall be used for grants, loans, or other financial 
assistance as appropriated by the legislature to assist in 
financing retrofitting of permitted once-through systems until 
December 31, 1999.  The commissioner shall adopt rules for 
determining eligibility and criteria for the issuance of grants, 
loans, or other financial assistance for retrofitting according 
to chapter 14, by July 1, 1993 fees must be credited to a 
special account and are appropriated to the Minnesota public 
facilities authority for loans under section 446A.21. 
    Sec. 2.  Minnesota Statutes 1990, section 115.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  The agency is hereby given and charged with 
the following powers and duties: 
    (a) To administer and enforce all laws relating to the 
pollution of any of the waters of the state; 
    (b) To investigate the extent, character, and effect of the 
pollution of the waters of this state and to gather data and 
information necessary or desirable in the administration or 
enforcement of pollution laws, and to make such classification 
of the waters of the state as it may deem advisable; 
    (c) To establish and alter such reasonable pollution 
standards for any waters of the state in relation to the public 
use to which they are or may be put as it shall deem necessary 
for the purposes of this chapter and, with respect to the 
pollution of waters of the state, chapter 116; 
    (d) To encourage waste treatment, including advanced waste 
treatment, instead of stream low-flow augmentation for dilution 
purposes to control and prevent pollution; 
    (e) To adopt, issue, reissue, modify, deny, or revoke, 
enter into or enforce reasonable orders, permits, variances, 
standards, rules, schedules of compliance, and stipulation 
agreements, under such conditions as it may prescribe, in order 
to prevent, control or abate water pollution, or for the 
installation or operation of disposal systems or parts thereof, 
or for other equipment and facilities; 
    (1) Requiring the discontinuance of the discharge of 
sewage, industrial waste or other wastes into any waters of the 
state resulting in pollution in excess of the applicable 
pollution standard established under this chapter; 
    (2) Prohibiting or directing the abatement of any discharge 
of sewage, industrial waste, or other wastes, into any waters of 
the state or the deposit thereof or the discharge into any 
municipal disposal system where the same is likely to get into 
any waters of the state in violation of this chapter and, with 
respect to the pollution of waters of the state, chapter 116, or 
standards or rules promulgated or permits issued pursuant 
thereto, and specifying the schedule of compliance within which 
such prohibition or abatement must be accomplished; 
    (3) Prohibiting the storage of any liquid or solid 
substance or other pollutant in a manner which does not 
reasonably assure proper retention against entry into any waters 
of the state that would be likely to pollute any waters of the 
state; 
    (4) Requiring the construction, installation, maintenance, 
and operation by any person of any disposal system or any part 
thereof, or other equipment and facilities, or the 
reconstruction, alteration, or enlargement of its existing 
disposal system or any part thereof, or the adoption of other 
remedial measures to prevent, control or abate any discharge or 
deposit of sewage, industrial waste or other wastes by any 
person; 
    (5) Establishing, and from time to time revising, standards 
of performance for new sources taking into consideration, among 
other things, classes, types, sizes, and categories of sources, 
processes, pollution control technology, cost of achieving such 
effluent reduction, and any nonwater quality environmental 
impact and energy requirements.  Said standards of performance 
for new sources shall encompass those standards for the control 
of the discharge of pollutants which reflect the greatest degree 
of effluent reduction which the agency determines to be 
achievable through application of the best available 
demonstrated control technology, processes, operating methods, 
or other alternatives, including, where practicable, a standard 
permitting no discharge of pollutants.  New sources shall 
encompass buildings, structures, facilities, or installations 
from which there is or may be the discharge of pollutants, the 
construction of which is commenced after the publication by the 
agency of proposed rules prescribing a standard of performance 
which will be applicable to such source.  Notwithstanding any 
other provision of the law of this state, any point source the 
construction of which is commenced after May 20, 1973, and which 
is so constructed as to meet all applicable standards of 
performance for new sources shall, consistent with and subject 
to the provisions of section 306(d) of the Amendments of 1972 to 
the Federal Water Pollution Control Act, not be subject to any 
more stringent standard of performance for new sources during a 
ten-year period beginning on the date of completion of such 
construction or during the period of depreciation or 
amortization of such facility for the purposes of section 167 or 
169, or both, of the Federal Internal Revenue Code of 1954, 
whichever period ends first.  Construction shall encompass any 
placement, assembly, or installation of facilities or equipment, 
including contractual obligations to purchase such facilities or 
equipment, at the premises where such equipment will be used, 
including preparation work at such premises; 
    (6) Establishing and revising pretreatment standards to 
prevent or abate the discharge of any pollutant into any 
publicly owned disposal system, which pollutant interferes with, 
passes through, or otherwise is incompatible with such disposal 
system; 
    (7) Requiring the owner or operator of any disposal system 
or any point source to establish and maintain such records, make 
such reports, install, use, and maintain such monitoring 
equipment or methods, including where appropriate biological 
monitoring methods, sample such effluents in accordance with 
such methods, at such locations, at such intervals, and in such 
a manner as the agency shall prescribe, and providing such other 
information as the agency may reasonably require; 
    (8) Notwithstanding any other provision of this chapter, 
and with respect to the pollution of waters of the state, 
chapter 116, requiring the achievement of more stringent 
limitations than otherwise imposed by effluent limitations in 
order to meet any applicable water quality standard by 
establishing new effluent limitations, based upon section 
115.01, subdivision 5, clause (b), including alternative 
effluent control strategies for any point source or group of 
point sources to insure the integrity of water quality 
classifications, whenever the agency determines that discharges 
of pollutants from such point source or sources, with the 
application of effluent limitations required to comply with any 
standard of best available technology, would interfere with the 
attainment or maintenance of the water quality classification in 
a specific portion of the waters of the state.  Prior to 
establishment of any such effluent limitation, the agency shall 
hold a public hearing to determine the relationship of the 
economic and social costs of achieving such limitation or 
limitations, including any economic or social dislocation in the 
affected community or communities, to the social and economic 
benefits to be obtained and to determine whether or not such 
effluent limitation can be implemented with available technology 
or other alternative control strategies.  If a person affected 
by such limitation demonstrates at such hearing that, whether or 
not such technology or other alternative control strategies are 
available, there is no reasonable relationship between the 
economic and social costs and the benefits to be obtained, such 
limitation shall not become effective and shall be adjusted as 
it applies to such person; 
    (9) Modifying, in its discretion, any requirement or 
limitation based upon best available technology with respect to 
any point source for which a permit application is filed after 
July 1, 1977, upon a showing by the owner or operator of such 
point source satisfactory to the agency that such modified 
requirements will represent the maximum use of technology within 
the economic capability of the owner or operator and will result 
in reasonable further progress toward the elimination of the 
discharge of pollutants; 
    (f) To require to be submitted and to approve plans and 
specifications for disposal systems or point sources, or any 
part thereof and to inspect the construction thereof for 
compliance with the approved plans and specifications thereof; 
    (g) To prescribe and alter rules, not inconsistent with 
law, for the conduct of the agency and other matters within the 
scope of the powers granted to and imposed upon it by this 
chapter and, with respect to pollution of waters of the state, 
in chapter 116, provided that every rule affecting any other 
department or agency of the state or any person other than a 
member or employee of the agency shall be filed with the 
secretary of state; 
    (h) To conduct such investigations, issue such notices, 
public and otherwise, and hold such hearings as are necessary or 
which it may deem advisable for the discharge of its duties 
under this chapter and, with respect to the pollution of waters 
of the state, under chapter 116, including, but not limited to, 
the issuance of permits, and to authorize any member, employee, 
or agent appointed by it to conduct such investigations or, 
issue such notices and hold such hearings; 
    (i) For the purpose of water pollution control planning by 
the state and pursuant to the Federal Water Pollution Control 
Act, as amended, to establish and revise planning areas, adopt 
plans and programs and continuing planning processes, including, 
but not limited to, basin plans and areawide waste treatment 
management plans, and to provide for the implementation of any 
such plans by means of, including, but not limited to, 
standards, plan elements, procedures for revision, 
intergovernmental cooperation, residual treatment process waste 
controls, and needs inventory and ranking for construction of 
disposal systems; 
    (j) To train water pollution control personnel, and charge 
such fees therefor as are necessary to cover the agency's 
costs.  All such fees received shall be paid into the state 
treasury and credited to the pollution control agency training 
account; 
    (k) To impose as additional conditions in permits to 
publicly owned disposal systems appropriate measures to insure 
compliance by industrial and other users with any pretreatment 
standard, including, but not limited to, those related to toxic 
pollutants, and any system of user charges ratably as is hereby 
required under state law or said Federal Water Pollution Control 
Act, as amended, or any regulations or guidelines promulgated 
thereunder; 
    (l) To set a period not to exceed five years for the 
duration of any National Pollutant Discharge Elimination System 
permit; 
    (m) To require a each governmental subdivision that owns or 
operates identified as a permittee for a wastewater disposal 
system treatment works to have a plan to address its ability to 
pay the costs of making major repairs to the annually evaluate 
the condition of its existing system and planning and 
constructing an adequate replacement system at the end of the 
existing system's expected useful life identify future capital 
improvements that will be needed to attain or maintain 
compliance with a national pollutant discharge elimination 
system or state disposal system permit; and 
    (n) To train individual sewage treatment system personnel, 
including persons who design, construct, install, inspect, 
service, and operate individual sewage treatment systems, and 
charge fees as necessary to pay the agency's costs.  All fees 
received must be paid into the state treasury and credited to 
the agency's training account.  Money in the account is 
appropriated to the agency to pay expenses related to training. 
The information required in clause (m) must be submitted 
annually to the commissioner on a form provided by the 
commissioner.  The commissioner shall provide technical 
assistance if requested by the governmental subdivision. 
     Sec. 3.  Minnesota Statutes 1990, section 115.19, is 
amended to read: 
    115.19 [CREATION; PURPOSE; EXCEPTIONS.] 
    A sanitary district may be created under the provisions of 
sections 115.18 to 115.37 for any territory embracing an area or 
a group of two or more adjacent areas, whether contiguous or 
separate, but not situated entirely within the limits of a 
single municipality, for the purpose of promoting the public 
health and welfare by providing an adequate and efficient system 
and means of collecting, conveying, pumping, treating and 
disposing of domestic sewage and garbage and industrial wastes 
within the district, in any case where the agency finds that 
there is need throughout such the territory for the 
accomplishment of such these purposes, that such purposes cannot 
be effectively accomplished throughout such territory by any 
existing public agency or agencies, that such these purposes can 
be effectively accomplished therein on an equitable basis by a 
district if created, and that the creation and maintenance of 
such a district will be administratively feasible and in 
furtherance of the public health, safety, and welfare; but 
subject to the following exceptions: 
    No such district shall be created within 25 miles of the 
boundary of any city of the first class without the approval of 
the governing body thereof and the approval of the governing 
body of each and every municipality in such the proposed 
district by resolution filed with the agency.  
    Sec. 4.  Minnesota Statutes 1990, section 115.20, 
subdivision 1, is amended to read: 
    Subdivision 1.  (a) A proceeding for the creation of a 
district may be initiated by a petition to the agency, filed 
with its secretary, containing the following: 
    (1) A request for creation of the proposed district; 
    (2) The name proposed for the district, to include the 
words "sanitary district"; 
    (3) A description of the territory of the proposed 
district; 
    (4) A statement showing the existence in such territory of 
the conditions requisite for creation of a district as 
prescribed in section 115.19; 
    (5) A statement of the territorial units represented by and 
the qualifications of the respective signers; 
    (6) The post office address of each signer, given under the 
signer's signature.  A petition may consist of separate writings 
of like effect, each signed by one or more qualified persons, 
and all such writings, when filed, shall be considered together 
as a single petition.  
    (b) A public meeting must be held to inform citizens of the 
proposed creation of the district.  At the meeting, information 
must be provided, including a description of the district's 
proposed structure, bylaws, territory, ordinances, budget, and 
charges.  Notice of the meeting must be published for two 
successive weeks in a qualified newspaper published within the 
territory of the proposed district or, if there is no qualified 
newspaper published within the territory, in a qualified 
newspaper of general circulation in the territory, and by 
posting for two weeks in each territorial unit of the proposed 
district.  A record of the meeting must be submitted to the 
agency with the petition. 
    Sec. 5.  Minnesota Statutes 1990, section 115.20, 
subdivision 2, is amended to read: 
    Subd. 2.  Every such petition shall be signed as follows: 
    (1) For each municipality wherein there is a territorial 
unit of the proposed district, by an authorized officer or 
officers pursuant to a resolution of the municipal governing 
body; 
    (2) For each organized town wherein there is a territorial 
unit of the proposed district, by an authorized officer or 
officers pursuant to a resolution of the town board; 
    (3) For each county wherein there is a territorial unit of 
the proposed district consisting of an unorganized area, by an 
authorized officer or officers pursuant to a resolution of the 
county board, or by at least 20 percent of the voters residing 
and owning land within such the unit.  
    Each such resolution shall be published in the official 
newspaper of the governing body adopting it and shall become 
effective 40 days after such publication, unless within said 
period there shall be filed with the governing body a petition 
signed by qualified electors of a territorial unit of the 
proposed district, equal in number to five percent of the number 
of such electors voting at the last preceding election of such 
the governing body, requesting a referendum on the resolution, 
in which case the same shall the resolution may not become 
effective until approved by a majority of such the qualified 
electors voting thereon at a regular election or special 
election which the governing body may call for such purpose.  
The notice of any such election and the ballot to be used 
thereat shall contain the text of the resolution followed by the 
question:  "Shall the above resolution be approved?" 
    If any signer is alleged to be a landowner in a territorial 
unit, a statement as to the signer's landowner status as such as 
shown by the county auditor's tax assessment records, certified 
by the auditor, shall be attached to or endorsed upon the 
petition.  
    Sec. 6.  Minnesota Statutes 1990, section 115.20, 
subdivision 3, is amended to read: 
    Subd. 3.  The agency or its agent holding the hearing on a 
petition may, at any time before the reception of evidence 
begins, permit the addition of signatures to the petition or may 
permit amendment of the petition At any time before publication 
of the public notice required in subdivision 4, or before the 
public hearing, if required under subdivision 4, additional 
signatures may be added to the petition or amendments of the 
petition may be made to correct or remedy any error or defect in 
signature or otherwise except a material error or defect in the 
description of the territory of the proposed district.  No 
proceeding shall be invalidated on account of any error or 
defect in the petition unless questioned by an interested party 
before the reception of evidence begins at the hearing except a 
material error or defect in the description of the territory of 
the proposed district.  If the qualifications of any signer of a 
petition are challenged at the hearing thereon, the agency or 
its agent holding the hearing shall determine the challenge 
forthwith on the allegations of the petition, the county 
auditor's certificate of land ownership, and such other evidence 
as may be received.  
    Sec. 7.  Minnesota Statutes 1990, section 115.20, 
subdivision 4, is amended to read: 
    Subd. 4.  (a) Upon receipt of a petition and the record of 
the public meeting required under subdivision 1, the agency 
shall cause a hearing to be held thereon, subject to the 
provisions of sections 14.02, 14.04 to 14.36, 14.38, 14.44 to 
14.45, and 14.57 to 14.62 and other laws not inconsistent 
therewith now or hereafter in force relating to hearings held 
under authority of the agency, so far as applicable, except as 
otherwise provided.  Notice of the hearing, stating that a 
petition for creation of the proposed district has been filed 
and describing the territory thereof, shall be given by the 
secretary of the agency by publication for two successive weeks 
in a qualified newspaper published within such territory, or, if 
there is no such newspaper, by publication in a qualified 
newspaper of general circulation in such territory, also by 
posting for two weeks in each territorial unit of the proposed 
district, and by mailing a copy of the notice to each signer of 
the petition at the signer's address as given therein.  
Registration of mailed copies of the notice shall not be 
required.  Proof of the giving of the notice shall be filed in 
the office of the secretary. publish a notice in the State 
Register and mail a copy to each property owner in the affected 
territory at the owner's address as given by the county 
auditor.  The mailed copy must state the date that the notice 
will appear in the State Register.  Copies need not be sent by 
registered mail.  The notice must: 
    (1) describe the petition for creation of the district; 
    (2) describe the territory affected by the petition; 
    (3) allow 30 days for submission of written comments on the 
petition; 
    (4) state that a person who objects to the petition may 
submit a written request for hearing to the agency within 30 
days of the publication of the notice in the State Register; and 
    (5) state that if a timely request for hearing is not 
received, the agency may make a decision on the petition at a 
future meeting of the agency. 
    (b) If 25 or more timely requests for hearing are received, 
the agency must hold a hearing on the petition in accordance 
with the contested case provisions of chapter 14. 
    Sec. 8.  Minnesota Statutes 1990, section 115.20, 
subdivision 5, is amended to read: 
    Subd. 5.  After the public notice period or the public 
hearing, if required under subdivision 4, and upon the evidence 
received thereat based on the petition, any public comments 
received, and, if a hearing was held, the hearing record, the 
agency shall make findings of fact and conclusions determining 
whether or not the conditions requisite for the creation of a 
district exist in the territory described in the petition.  If 
the agency finds that such conditions exist, it may make an 
order creating a district for the territory described in the 
petition under the name proposed in the petition or such other 
name, including the words "sanitary district," as the agency 
deems appropriate.  
    Sec. 9.  Minnesota Statutes 1990, section 115.20, 
subdivision 6, is amended to read: 
    Subd. 6.  If the agency, after the conclusion of the public 
notice period or the holding of a hearing, if required, 
determines that the creation of a district in the territory 
described in the petition is not warranted, it shall make an 
order denying the petition.  The secretary of the agency shall 
give notice of such denial by mail to each signer of the 
petition.  No petition for the creation of a district consisting 
of the same territory shall be entertained within a year after 
the date of such an order, but this shall not preclude action on 
a petition for the creation of a district embracing part of such 
the territory with or without other territory. 
    Sec. 10.  [116.182] [FINANCIAL ASSISTANCE PROGRAM.] 
    Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
section, the terms defined in this subdivision have the meanings 
given them. 
    (b) "Agency" means the pollution control agency. 
    (c) "Authority" means the public facilities authority 
established in section 446A.03. 
    (d) "Commissioner" means the commissioner of the pollution 
control agency. 
    (e) "Essential project components" means those components 
of a wastewater disposal system that are necessary to convey or 
treat a municipality's existing wastewater flows and loadings, 
and future wastewater flows and loadings based on the projected 
residential growth of the municipality for a 20-year period. 
    (f) "Municipality" means a county, home rule charter or 
statutory city, or town; the metropolitan waste control 
commission established in chapter 473; the metropolitan council 
when acting under the provisions of chapter 473; an Indian tribe 
or an authorized Indian tribal organization; or any other 
governmental subdivision of the state responsible by law for the 
prevention, control, and abatement of water pollution in any 
area of the state. 
    Subd. 2.  [APPLICABILITY.] This section governs the 
commissioner's certification of applications for financial 
assistance under section 446A.07 or 446A.071. 
    Subd. 3.  [PROJECT REVIEW.] The commissioner shall review a 
municipality's proposed project and financial assistance 
application to determine whether they meet the criteria in this 
section and the rules adopted under this section.  The review 
must include a determination of the essential project components.
    Subd. 4.  [CERTIFICATION OF APPROVED PROJECTS.] The 
commissioner shall certify to the authority each approved 
application, including a statement of the essential project 
components and associated costs. 
    Subd. 5.  [RULES.] The agency shall adopt rules for the 
administration of the financial assistance program.  The rules 
must include: 
    (1) application requirements; 
    (2) criteria for the ranking of projects in order of 
priority based on factors including the type of project and the 
degree of environmental impact, and scenic and wild river 
standards; and 
    (3) criteria for determining essential project components. 
    Subd. 6.  [TRANSFER OF FUNDS.] As the projects in the 
programs specified under section 116.18, except the program 
under subdivision 3c of that section, are completed, any amounts 
remaining from appropriations for the programs are appropriated 
to the authority for the wastewater infrastructure funding 
program in section 446A.071, provided this use of the funds does 
not violate applicable provisions of any bond or note 
resolutions, indentures, or other instruments, contracts, or 
agreements associated with the source of the funds. 
    Sec. 11.  Minnesota Statutes 1990, section 446A.04, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEES.] (a) The authority may set and collect 
fees for costs incurred by the authority for audits, arbitrage 
accounting, and payment of fees charged by the state board of 
investment.  The authority may also set and collect fees for 
costs incurred by the commissioner and the pollution control 
agency, including costs for personnel and administrative 
services, for its financings and the establishment and 
maintenance of reserve funds.  Fees charged directly to 
borrowers upon executing a loan agreement must not exceed 
one-half of one percent of the loan amount.  Servicing fees 
assessed to loan repayments must not exceed two percent of the 
loan repayment.  The disposition of fees collected for costs 
incurred by the authority is governed by section 446A.11, 
subdivision 13.  Fees collected under this subdivision for costs 
incurred by the commissioner or the pollution control agency 
must be credited to the general fund. 
     (b) The authority shall annually report to the chairs of 
the finance and appropriations committees of the legislature on: 
    (1) the amount of fees collected under this subdivision for 
costs incurred by the authority; 
    (2) the purposes for which the fee proceeds have been 
spent; and 
    (3) the amount of any remaining balance of fee proceeds. 
    Sec. 12.  Minnesota Statutes 1990, 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.  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. 13.  [446A.071] [WASTEWATER INFRASTRUCTURE FUNDING 
PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT OF THE PROGRAM.] (a) The 
authority shall establish the wastewater infrastructure funding 
program to provide supplemental assistance, as provided in rules 
of the authority, to municipalities that receive loans or other 
assistance from the water pollution control revolving fund under 
section 446A.07. 
    (b) The authority may secure funds for the wastewater 
infrastructure funding program through state appropriations; any 
source identified in section 446A.04 which may be designated by 
the authority for the purposes of this section; and any federal 
funding appropriated by Congress that may be used for the 
purposes of this section. 
    (c) The authority may set aside up to ten percent of the 
money appropriated to the wastewater infrastructure funding 
program for wastewater projects that are necessary to 
accommodate economic development projects. 
    Subd. 2.  [SUPPLEMENTAL ASSISTANCE.] The authority may 
provide supplemental assistance under this section in the form 
of loans; write-down of principal, interest, or both; or direct 
grants, as determined by authority rules.  The amount and form 
of the supplemental assistance must be based on the authority's 
determination of the financial capability of the municipality, 
the municipality's eligibility to qualify for other grant 
programs, and the source of funds. 
    Subd. 3.  [PROGRAM ADMINISTRATION.] The authority may 
provide supplemental assistance to municipalities demonstrating 
financial need whose applications have been certified by the 
commissioner of the pollution control agency under section 
116.182.  The authority shall provide supplemental assistance 
according to the priority ranking established by the pollution 
control agency except for amounts set aside under subdivision 1, 
paragraph (c).  The authority shall assist municipalities in 
securing other funding from appropriate sources.  The authority 
shall not award financial assistance under this section unless 
it determines that the total project financing will be in place. 
    Subd. 4.  [FUNDING LEVEL.] (a) The authority may provide 
supplemental assistance for essential project components and 
costs as certified by the commissioner of the pollution control 
agency under section 116.182, subdivision 4, only if the loan or 
other financial assistance under section 446A.07 is not 
sufficient to provide financing for that portion of the 
project.  The authority shall take into account the ability of 
significant wastewater contributors to pay their fair share of 
the total project costs in determining eligibility of costs for 
supplemental assistance. 
    (b) When feasible, the authority shall coordinate and 
leverage assistance under the wastewater infrastructure funding 
program with other grant programs for which the municipality is 
eligible. 
    (c) Requirements under paragraph (a) do not apply to the 
economic development set-aside under subdivision 1, paragraph 
(c). 
    Subd. 5.  [APPLICATIONS.] Applications for supplemental 
assistance must be made to the authority on forms prescribed by 
the authority and must include information identified in the 
rules of the authority and the agency.  The authority shall 
forward an application to the commissioner of the pollution 
control agency within ten days of receipt.  The commissioner of 
the pollution control agency shall review the projects and 
applications to determine if they meet the criteria set forth in 
section 116.182 and the agency rules for the program.  The 
commissioner of the pollution control agency shall certify 
approved applications to the authority under section 116.182. 
    Subd. 6.  [PAYMENTS.] Payments from the wastewater 
infrastructure funding program must be made in accordance with 
applicable state and federal laws and rules of the authority 
governing such payments. 
    Subd. 7.  [RULES.] The commissioner of trade and economic 
development shall adopt rules establishing procedures for the 
administration of the wastewater infrastructure funding program. 
The rules must include: 
    (1) procedures for the administration of the financial 
assistance program, including application procedures; 
    (2) provisions establishing eligible uses of funds, forms 
of assistance, payments, and reporting requirements; and 
    (3) criteria for determining the amount of supplemental 
assistance, which must include consideration of:  social, 
economic, and demographic considerations; sewer service charges; 
financial management; and the ability of significant wastewater 
contributors to pay their fair share of the costs without 
supplemental assistance. 
    Subd. 8.  [TRANSFER OF APPROPRIATIONS.] As the projects in 
the programs specified under section 116.18 are completed, any 
amounts remaining from appropriations for the programs are 
appropriated to the authority for the wastewater infrastructure 
funding program, provided this use does not violate applicable 
provisions of any bond or note resolutions, indentures, or other 
instruments, contracts, or agreements associated with the source 
of the funds. 
     Sec. 14.  [446A.21] [ONCE-THROUGH COOLING CONVERSION 
LOANS.] 
    Subdivision 1.  [BONDS AND NOTES.] (a) The authority shall 
provide loans, including no interest loans, to public and 
private entities for the capital costs incurred for the 
replacement of once-through cooling systems with environmentally 
acceptable cooling systems.  
    (b) The authority may issue its bonds and notes in the 
manner provided under sections 446A.12 to 446A.20 to provide 
money needed for the purposes of this section over and above the 
amount appropriated to it for these purposes.  The principal 
amount of bonds and notes issued and outstanding under this 
section may not exceed $40,000,000 at any time.  The bonds and 
notes issued to make loans under this section are not general 
obligation bonds.  Section 446A.15, subdivision 6, does not 
apply to the bonds and notes.  The bonding authority authorized 
under this section is in addition to the bonding authority 
authorized under section 446A.12, subdivision 1, and the 
limitation on the amount of bonding authority imposed under 
section 446A.12, subdivision 1, does not apply to the bonds 
issued under this section.  The legislature intends not to 
appropriate money from the general fund to pay for these bonds. 
    (c) Money appropriated to the authority and money provided 
under section 446A.04, subdivision 3, for once-through cooling 
conversion may be used by the authority for debt service on 
bonds and notes, purchasing insurance, subsidizing below market 
interest rates, and providing loans under this section. 
    Subd. 2.  [ADMINISTRATION.] (a) An entity may apply to the 
authority for a loan.  Within ten days of receipt, the authority 
shall submit the application to the commissioner of public 
service to determine whether the proposed cooling system meets 
the energy efficiency criteria of the department.  The 
commissioner of public service shall certify to the authority 
whether the project meets the applicable energy efficiency 
criteria.  The commissioner of public service shall adopt rules 
establishing energy efficiency criteria for replacement cooling 
systems.  
    (b) Within the limitation of available funds, the authority 
may award a loan to a certified entity if the authority 
determines that the entity has demonstrated the ability to repay 
the loan under the terms negotiated under subdivision 3. 
    (c) The authority shall give priority to nonprofit 
organizations and school districts in making loans. 
    Subd. 3.  [LOAN CONDITIONS.] A loan made under this section 
may be made for up to 100 percent of the cost of once-through 
cooling system replacement for which the entity is liable.  A 
loan may be made at or below market interest rates and at a term 
not to exceed 20 years. 
    Subd. 4.  [LOAN PAYMENTS.] Loan repayments of principal and 
interest received by the authority are appropriated to the 
authority to make new loans. 
     Sec. 15.  Laws 1991, chapter 183, section 1, is amended to 
read: 
    Section 1.  [FULLY DEVELOPED AREA; STUDY.] 
    The metropolitan council must conduct a study of the 
development patterns and needs in the council-defined fully 
developed area.  The council must direct its staff to: 
    (1) examine both the development patterns and the migration 
patterns in the fully developed area that have occurred in the 
last 20 years with special attention to household composition; 
    (2) compare the relative public costs of redevelopment in 
the fully developed area with the costs of development within 
the council-defined developing area.  This work should include, 
but is not limited to, transportation and transit, wastewater 
treatment, public safety services, housing, and education; 
    (3) examine the changing demographics of the fully 
developed area and other areas within the metropolitan region, 
and make projections regarding the economic and social condition 
of the fully developed area; 
    (4) examine the anticipated effects of a light rail transit 
system on the economic and social condition of the fully 
developed area; and 
    (5) recommend changes that would encourage the economic and 
social strengthening of the fully developed area. 
    In conducting its study, the council must use, along with 
other information, any available data from the 1990 census.  The 
council must present its the analysis, findings, and preliminary 
policy options and recommendations identified by council staff 
to the legislature by February 15, 1994 January 1, 1993.  The 
council must also present interim briefings to the legislature 
on work in progress at least annually between the effective date 
of this act and the completion of the study.  The council shall 
present its policy recommendations to the legislature by July 1, 
1993. 
    Sec. 16.  [METROPOLITAN DISPOSAL SYSTEM RATE STRUCTURE 
STUDY.] 
    Subdivision 1.  [COUNCIL CONTRACT WITH THE UNIVERSITY.] The 
metropolitan council shall contract with the board of regents of 
the University of Minnesota to conduct the study described in 
this section.  The contract amount may not exceed $100,000.  The 
council and the metropolitan waste control commission shall 
cooperate with and as requested by the university as it conducts 
the study.  Council costs, including the contract costs incurred 
by the council, must be paid for by the metropolitan waste 
control commission under Minnesota Statutes, section 473.164. 
    Subd. 2.  [STUDY.] The university shall study the 
allocation of current costs, as defined in Minnesota Statutes, 
section 473.517, subdivision 1, among local government units in 
the metropolitan area in order to examine the social, economic, 
and environmental effects resulting from:  (1) the allocation of 
current costs to communities within service areas for which the 
costs are attributable, versus (2) the allocation of current 
costs to communities uniformly throughout the metropolitan 
area.  The study may consider various configurations of service 
areas, and must consider service areas reasonably consistent 
with the council's geographic policy areas, as defined in the 
council's development and investment framework.  The study must 
specifically address the effects of alternative cost allocation 
methods on the council-defined fully developed area.  The study 
may consider effects arising from the location and placement of 
other infrastructure elements on the fully developed and 
developing areas. 
    Subd. 3.  [REPORT TO THE LEGISLATURE.] The council shall 
submit the university's study report to the legislature along 
with the council's and the commission's comments on the report 
by January 4, 1993. 
     Sec. 17.  [CLOQUET; BONDS.] 
    The city of Cloquet may issue general obligation bonds in 
an amount not greater than $2,200,000 for the acquisition and 
betterment of a water line extension to the Fond du Lac 
Community College.  The bonds may be issued without election and 
are not subject to the limits on debt provided by Minnesota 
Statutes, chapter 475, or other law.  Except as provided by this 
section, the bonds shall be issued as provided by Minnesota 
Statutes, chapter 475.  The bonds must be issued before July 1, 
1993. 
    Sec. 18.  [APPROPRIATION ALLOCATION.] 
    (a) $100,000 remaining from the appropriation in Laws 1991, 
chapter 254, article 1, section 2, subdivision 2, is for grants 
to municipalities for the individual on-site treatment systems 
program under Minnesota Statutes, section 116.18, subdivision 
3c.  This amount must be transferred by the pollution control 
agency to the public facilities authority.  Any unencumbered 
balance remaining in the first year does not cancel and is 
available for the second year of the biennium. 
    (b) Up to $50,000 of the amount in paragraph (a) may be 
awarded to a municipality or sanitary district for advanced 
alternative on-site treatment system demonstration projects in 
sensitive groundwater areas.  An amount awarded under this 
paragraph must be matched by an equal amount of local funds from 
the municipality or sanitary district. 
    Sec. 19.  [EFFECTIVE DATE.] 
    Sections 1 and 14 are effective July 1, 1992. 
    Sections 15 and 16 are effective the day following final 
enactment and apply in the counties of Anoka, Carver, Dakota, 
Hennepin, Ramsey, Scott, and Washington. 
    Section 18 is effective the day following final enactment. 
    Section 17 is effective the day following the date of 
compliance by the governing body of the city of Cloquet with 
Minnesota Statutes, section 645.021, subdivision 3. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 29, 1992, 8:40 a.m.