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                            CHAPTER 462-H.F.No. 787 
                  An act relating to natural resources; water; modifying 
                  wetland protection and management; authorizing 
                  rulemaking; appropriating money; amending Minnesota 
                  Statutes 1994, sections 84.035, subdivisions 5 and 6; 
                  103B.3355; 103E.701, subdivision 6; 103F.612, 
                  subdivisions 2, 3, 5, 6, and 7; 103G.005, subdivision 
                  10a, and by adding subdivisions; 103G.127; 103G.222; 
                  103G.2241; 103G.2242, subdivisions 1, 2, 4, 6, 7, 9, 
                  and 12; 103G.237, subdivision 4, and by adding a 
                  subdivision; 103G.2373; and 115.03, by adding a 
                  subdivision; proposing coding for new law in Minnesota 
                  Statutes, chapter 103G; repealing Minnesota Statutes 
                  1994, section 103G.2242, subdivision 13. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 84.035, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ACTIVITIES IN PEATLAND SCIENTIFIC AND NATURAL 
        AREAS.] Areas designated in subdivision 4 as peatland scientific 
        and natural areas are subject to the following conditions: 
           (a) Except as provided in paragraph (b), all restrictions 
        otherwise applicable to scientific and natural areas designated 
        under section 86A.05, subdivision 5, apply to the surface use 
        and to any use of the mineral estate which would significantly 
        modify or alter the peatland water levels or flows, peatland 
        water chemistry, plant or animal species or communities, or 
        other natural features of the peatland scientific and natural 
        areas, including, but not limited to, the following prohibitions:
           (1) construction of any new public drainage systems after 
        the effective date of Laws 1991, chapter 354, or improvement or 
        repair to a public drainage system in existence on the effective 
        date of Laws 1991, chapter 354, under authority of chapter 103E, 
        or any other alteration of surface water or ground water levels 
        or flows unless specifically permitted under paragraph (b), 
        clause (5) or (6); 
           (2) removal of peat, sand, gravel, or other industrial 
        minerals; 
           (3) exploratory boring or other exploration or removal of 
        oil, natural gas, radioactive materials or metallic minerals 
        which would significantly modify or alter the peatland water 
        levels or flows, peatland water chemistry, plant or animal 
        species or communities, or natural features of the peatland 
        scientific and natural areas, except in the event of a national 
        emergency declared by Congress; 
           (4) commercial timber harvesting; 
           (5) construction of new corridors of disturbance, of the 
        kind defined in subdivision 3, after June 5, 1991; and 
           (6) ditching, draining, filling, or any other activities 
        which modify or alter the peatland water levels or flows, 
        peatland water chemistry, plant or animal species or 
        communities, or other natural features of the peatland 
        scientific and natural areas. 
           (b) The following activities are allowed: 
           (1) recreational activities, including hunting, fishing, 
        trapping, cross-country skiing, snowshoeing, nature observation, 
        or other recreational activities permitted in the management 
        plan approved by the commissioner; 
           (2) scientific and educational work and research; 
           (3) maintenance of corridors of disturbance, including 
        survey lines and preparation of winter roads, consistent with 
        protection of the peatland ecosystem; 
           (4) use of corridors of disturbance unless limited by a 
        management plan adopted by the commissioner under subdivision 6; 
           (5) improvements to a public drainage system in existence 
        on the effective date of Laws 1991, chapter 354, only when it is 
        for the protection and maintenance of the ecological integrity 
        of the peatland scientific and natural area and when included in 
        a management plan adopted by the commissioner under subdivision 
        6; 
           (6) repairs to a public drainage system in existence on the 
        effective date of Laws 1991, chapter 354, which crosses a 
        peatland scientific and natural area and is used for the 
        purposes of providing a drainage outlet for lands outside of the 
        peatland scientific and natural area, provided that there are no 
        other feasible and prudent alternative means of providing the 
        drainage outlet.  The commissioner shall cooperate with the 
        ditch authority in the determination of any feasible and prudent 
        alternatives.  No repairs which would significantly modify or 
        alter the peatland water levels or flows, peatland water 
        chemistry, plant or animal species or communities, or other 
        natural features of the peatland scientific and natural areas 
        shall be made unless approved by the commissioner; 
           (7) motorized uses that are engaged in, on corridors a 
        corridor of disturbance, if the corridor existed on or before 
        the effective date of Laws 1991, chapter 354 January 1, 1992, 
        provided that recreational motorized users may occur only when 
        the substrate is frozen, or the corridor is snow packed, subject 
        to a management plan developed in accordance with subdivision 6; 
        and 
           (8) control of forest insects, disease, and wildfires, as 
        described in a management plan adopted by the commissioner under 
        subdivision 6; and 
           (9) geological and geophysical surveys which would not 
        significantly modify or alter the peatland water levels or 
        flows, peatland water chemistry, plant or animal species or 
        communities, or other natural features of the peatland 
        scientific and natural areas. 
           Sec. 2.  Minnesota Statutes 1994, section 84.035, 
        subdivision 6, is amended to read: 
           Subd. 6.  [MANAGEMENT PLANS.] The commissioner shall 
        develop in consultation with the affected local government unit 
        a management plan for each peatland scientific and natural area 
        designated under section 84.036 in a manner prescribed by 
        section 86A.09. 
           The management plan shall address recreational trails.  In 
        those peatland scientific and natural areas where no corridor of 
        disturbance was used as a recreational trail on or before 
        January 1, 1992, the plan may permit only one corridor of 
        disturbance, in each peatland scientific and natural area, to be 
        used as a recreational motorized trail. 
           Sec. 3.  Minnesota Statutes 1994, section 103B.3355, is 
        amended to read: 
           103B.3355 [PUBLIC VALUE CRITERIA FOR WETLANDS WETLAND 
        FUNCTIONS FOR DETERMINING PUBLIC VALUES.] 
           (a) The board of water and soil resources, in consultation 
        with the commissioner of natural resources, shall adopt rules 
        establishing criteria to determine The public value values of 
        wetlands.  The rules must consider the public benefit and use of 
        the wetlands and include must be determined based upon the 
        functions of wetlands for:  
           (1) criteria to determine the benefits of wetlands for 
        water quality, including filtering of pollutants to surface and 
        groundwater, utilization of nutrients that would otherwise 
        pollute public waters, trapping of sediments, shoreline 
        protection, and utilization of the wetland as a recharge area 
        for groundwater; 
           (2) criteria to determine the benefits of wetlands for 
        floodwater and stormwater retention, including the potential for 
        flooding in the watershed, the value of property subject to 
        flooding, and the reduction in potential flooding by the 
        wetland; 
           (3) criteria to determine the benefits of wetlands for 
        public recreation and education, including wildlife habitat, 
        hunting and fishing areas, wildlife breeding areas, wildlife 
        viewing areas, aesthetically enhanced areas, and nature areas; 
           (4) criteria to determine the benefits of wetlands for 
        commercial uses, including wild rice and cranberry growing and 
        harvesting and aquaculture; and 
           (5) fish, wildlife, native plant habitats; and 
           (6) low-flow augmentation; and 
           (7) criteria to determine the benefits of wetlands for 
        other public uses.  
           (b) The board of water and soil resources, in consultation 
        with the commissioners of natural resources and agriculture and 
        local government units, shall adopt rules establishing: 
           (1) scientific methodologies for determining the functions 
        of wetlands; and 
           (2) criteria for determining the resulting public values of 
        wetlands. 
           (c) The methodologies and criteria established under this 
        section or other methodologies and criteria that include the 
        functions in paragraph (a) and are approved by the board, in 
        consultation with the commissioners of natural resources and 
        agriculture and local government units, must be used to 
        determine the functions and resulting public value values of 
        wetlands in the state.  The functions listed in paragraph (a) 
        are not listed in order of priority. 
           (d) Public value criteria established or approved by the 
        board under this section do not apply in areas subject to local 
        comprehensive wetland protection and management plans 
        established under section 103G.2243. 
           (e) The board of water and soil resources, in consultation 
        with the commissioner commissioners of natural resources, shall 
        also use the criteria in identifying and agriculture and local 
        government units, may identify regions of the state where 
        preservation, enhancement, restoration, and establishment of 
        wetlands would have high public value.  Before the criteria are 
        adopted, The board, in consultation with the commissioner 
        commissioners, may identify high priority wetland regions using 
        available information relating to the factors listed in 
        paragraph (a).  The board shall notify local units of government 
        with water planning authority of these high priority regions. 
           Sec. 4.  Minnesota Statutes 1994, section 103E.701, 
        subdivision 6, is amended to read: 
           Subd. 6.  [WETLAND RESTORATION AND MITIGATION.] Repair of a 
        drainage system may include the preservation, restoration, or 
        enhancement of wetlands; wetland replacement under section 
        103G.222; and the realignment of a drainage system to prevent 
        drainage of a wetland. 
           Sec. 5.  Minnesota Statutes 1994, section 103F.612, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
        the county where a wetland is located for designation of a 
        wetland preservation area in a high priority wetland area 
        identified in a comprehensive local water plan, as defined in 
        section 103B.3363, subdivision 3, and located within a high 
        priority wetland region designated by the board of water and 
        soil resources, if the county chooses to accept wetland 
        preservation area applications.  The application must be made on 
        forms provided by the board.  If a wetland is located in more 
        than one county, the application must be submitted to the county 
        where the majority of the wetland is located.  
           (b) The application must contain at least the following 
        information and other information the board of soil and water 
        resources requires:  
           (1) legal description of the area to be approved, which 
        must include an upland strip at least 16-1/2 feet in width 
        around the perimeter of wetlands within the area and may include 
        total upland area of up to four acres for each acre of wetland; 
           (2) parcel identification numbers where designated by the 
        county auditor; 
           (3) name and address of the owner; 
           (4) a witnessed signature of the owner covenanting that the 
        land will be preserved as a wetland and will only be used in 
        accordance with conditions prescribed by the board of water and 
        soil resources; and 
           (5) a statement that the restrictive covenant will be 
        binding on the owner and the owner's successors or assigns, and 
        will run with the land.  
           (c) The upland strip required in paragraph (b), clause (1), 
        must be planted with permanent vegetation other than a noxious 
        weed. 
           (d) For registered property, the owner shall submit the 
        owner's duplicate certificate of title with the application.  
           Sec. 6.  Minnesota Statutes 1994, section 103F.612, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REVIEW AND NOTICE.] Upon receipt of an 
        application, the county shall determine if all material required 
        by subdivision 2 has been submitted and, if so, shall determine 
        that the application is complete.  The term "date of application"
        means the date the application is determined to be complete by 
        the county.  The county shall send a copy of the application to 
        the county assessor, the regional development commission, where 
        applicable, the board of water and soil resources, and the soil 
        and water conservation district where the land is located.  The 
        soil and water conservation district shall prepare an advisory 
        statement of existing and potential preservation problems or 
        conflicts and send the statement to the owner of record and to 
        the county.  The county shall notify the landowner of the 
        acceptance or denial of the application within 60 days from the 
        date of the application. 
           Sec. 7.  Minnesota Statutes 1994, section 103F.612, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COMMENCEMENT OF WETLAND PRESERVATION AREA.] The 
        wetland is a wetland preservation area commencing 30 days from 
        the date the county determines notifies the landowner of 
        acceptance of the application is complete under subdivision 3.  
           Sec. 8.  Minnesota Statutes 1994, section 103F.612, 
        subdivision 6, is amended to read: 
           Subd. 6.  [FEE.] The county may require an application fee, 
        not to exceed $50 to defray administrative costs of the program. 
           Sec. 9.  Minnesota Statutes 1994, section 103F.612, 
        subdivision 7, is amended to read: 
           Subd. 7.  [MAPS.] The board of water and soil resources 
        county shall maintain wetland preservation area maps 
        illustrating land covenanted as wetland preservation areas.  
           Sec. 10.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [AGRICULTURAL LAND.] "Agricultural land" means:  
        land used for horticultural, row, close grown, pasture, and 
        hayland crops; growing nursery stocks; animal feedlots; farm 
        yards; associated building sites; and public and private 
        drainage systems and field roads located on any of the foregoing.
           Sec. 11.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 10a.  [50 TO 80 PERCENT AREA.] "50 to 80 percent 
        area" means a county or watershed with at least 50 but less than 
        80 percent of the presettlement wetland acreage intact. 
           Sec. 12.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 10b.  [GREATER THAN 80 PERCENT AREA.] "Greater than 
        80 percent area" means a county or watershed where 80 percent or 
        more of the presettlement wetland acreage is intact and: 
           (1) ten percent or more of the current total land area is 
        wetland; or 
           (2) 50 percent or more of the current total land area is 
        state or federal land. 
           Sec. 13.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 10c.  [HAYLAND.] "Hayland" means an area that was 
        mechanically harvested or that was planted with annually seeded 
        crops in a crop rotation seeding of grasses or legumes in six of 
        the last ten years prior to January 1, 1991. 
           Sec. 14.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 10d.  [LESS THAN 50 PERCENT AREA.] "Less than 50 
        percent area" means a county or watershed with less than 50 
        percent of the presettlement wetland acreage intact or any 
        county or watershed not defined as a "greater than 80 percent 
        area" or "50 to 80 percent area." 
           Sec. 15.  Minnesota Statutes 1994, section 103G.005, 
        subdivision 10a, is amended to read: 
           Subd. 10a 10e.  [LOCAL GOVERNMENT UNIT.] "Local government 
        unit" means: 
           (1) outside of the seven-county metropolitan area, a city 
        council or county board of commissioners or their delegate; and 
           (2) in the seven-county metropolitan area, a city council, 
        a town board under section 368.01, or a watershed management 
        organization under section 103B.211, or their delegate; and 
           (3) on state land, the agency with administrative 
        responsibility for the land. 
           Sec. 16.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 14a.  [PASTURE.] "Pasture" means an area that was 
        grazed by domesticated livestock or that was planted with 
        annually seeded crops in a crop rotation seeding of grasses or 
        legumes of the last years prior to January 1, 1991. 
           Sec. 17.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 14c.  [PRESETTLEMENT WETLAND.] "Presettlement wetland"
        means a wetland or public waters wetland that existed in this 
        state at the time of statehood in 1858. 
           Sec. 18.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 14d.  [PROJECT.] "Project" means a specific plan, 
        contiguous activity, proposal, or design necessary to accomplish 
        a goal as defined by the local government unit.  As used in this 
        chapter, a project may not be split into components or phases 
        for the sole purpose of gaining additional exemptions. 
           Sec. 19.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 15b.  [SHORELAND WETLAND PROTECTION ZONE.] "Shoreland 
        wetland protection zone" means: 
           (1) for local government units that have a shoreland 
        management ordinance approved under sections 103F.201 to 
        103F.221, the shoreland wetland protection zone is: 
           (i) 1,000 feet from the ordinary high water level of a 
        waterbasin that is a public water identified in the shoreland 
        management ordinance or the shoreland area approved by the 
        commissioner as provided in the shoreland management rules 
        adopted under section 103F.211, whichever is less; or 
           (ii) 300 feet from the ordinary high water level of a 
        watercourse identified in the shoreland management ordinance or 
        the shoreland area approved by the commissioner as provided in 
        the shoreland management rules adopted under section 103F.211, 
        whichever is less; and 
           (2) for local government units that do not have a shoreland 
        management ordinance approved under sections 103F.201 to 
        103F.221, the shoreland wetland protection zone is: 
           (i) 1,000 feet from the ordinary high water level of a 
        waterbasin that is a public water that is at least ten acres in 
        size within municipalities and at least 25 acres in size in 
        unincorporated areas; or 
           (ii) 300 feet from the ordinary high water level of a 
        watercourse identified by the public waters inventory under 
        section 103G.201. 
           Sec. 20.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 15c.  [SILVICULTURE.] "Silviculture" means the 
        management of forest trees. 
           Sec. 21.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 15d.  [UTILITY.] "Utility" means a sanitary sewer, 
        storm sewer, potable water distribution, and transmission, 
        distribution, or furnishing, at wholesale or retail, of natural 
        or manufactured gas, electricity, telephone, or radio service or 
        communications. 
           Sec. 22.  Minnesota Statutes 1994, section 103G.005, is 
        amended by adding a subdivision to read: 
           Subd. 17b.  [WETLAND TYPE.] "Wetland type" means a wetland 
        type classified according to Wetlands of the United States, U.S. 
        Fish and Wildlife Service Circular 39 (1971 edition), as 
        summarized in this subdivision. 
           (1) "Type 1 wetlands" are seasonally flooded basins or 
        flats in which soil is covered with water or is waterlogged 
        during variable seasonal periods but usually is well-drained 
        during much of the growing season.  Type 1 wetlands are located 
        in depressions and in overflow bottomlands along watercourses, 
        and in which vegetation varies greatly according to season and 
        duration of flooding and includes bottomland hardwoods as well 
        as herbaceous growths. 
           (2) "Type 2 wetlands" are inland fresh meadows in which 
        soil is usually without standing water during most of the 
        growing season but is waterlogged within at least a few inches 
        of surface.  Vegetation includes grasses, sedges, rushes, and 
        various broad-leafed plants.  Meadows may fill shallow basins, 
        sloughs, or farmland sags, or these meadows may border shallow 
        marshes on the landward side. 
           (3) "Type 3 wetlands" are inland shallow fresh marshes in 
        which soil is usually waterlogged early during a growing season 
        and often covered with as much as six inches or more of water.  
        Vegetation includes grasses, bulrushes, spikerushes, and various 
        other marsh plants such as cattails, arrowheads, pickerelweed, 
        and smartweeds.  These marshes may nearly fill shallow lake 
        basins or sloughs, or may border deep marshes on the landward 
        side and are also common as seep areas on irrigated lands. 
           (4) "Type 4 wetlands" are inland deep fresh marshes in 
        which soil is usually covered with six inches to three feet or 
        more of water during the growing season.  Vegetation includes 
        cattails, reeds, bulrushes, spikerushes, and wild rice.  In open 
        areas, pondweeds, naiads, coontail, water milfoils, waterweeds, 
        duckweeds, waterlilies, or spatterdocks may occur.  These deep 
        marshes may completely fill shallow lake basins, potholes, 
        limestone sinks, and sloughs, or they may border open water in 
        such depressions. 
           (5) "Type 5 wetlands" are inland open fresh water, shallow 
        ponds, and reservoirs in which water is usually less than ten 
        feet deep and is fringed by a border of emergent vegetation 
        similar to open areas of type 4 wetland. 
           (6) "Type 6 wetlands" are shrub swamps in which soil is 
        usually waterlogged during growing season and is often covered 
        with as much as six inches of water.  Vegetation includes 
        alders, willows, buttonbush, dogwoods, and swamp-privet.  This 
        type occurs mostly along sluggish streams and occasionally on 
        floodplains. 
           (7) "Type 7 wetlands" are wooded swamps in which soil is 
        waterlogged at least to within a few inches of the surface 
        during growing season and is often covered with as much as one 
        foot of water.  This type occurs mostly along sluggish streams, 
        on floodplains, on flat uplands, and in shallow basins.  Trees 
        include tamarack, arborvitae, black spruce, balsam, red maple, 
        and black ash.  Northern evergreen swamps usually have a thick 
        ground cover of mosses.  Deciduous swamps frequently support 
        beds of duckweeds and smartweeds. 
           (8) "Type 8 wetlands" are bogs in which soil is usually 
        waterlogged and supports a spongy covering of mosses.  This type 
        occurs mostly in shallow basins, on flat uplands, and along 
        sluggish streams.  Vegetation is woody or herbaceous or both.  
        Typical plants are heath shrubs, sphagnum moss, and sedges.  In 
        the north, leatherleaf, Labrador-tea, cranberries, carex, and 
        cottongrass are often present.  Scattered, often stunted, black 
        spruce and tamarack may occur. 
           Sec. 23.  Minnesota Statutes 1994, section 103G.127, is 
        amended to read: 
           103G.127 [PERMIT PROGRAM UNDER SECTION 404 OF THE FEDERAL 
        CLEAN WATER ACT.] 
           Notwithstanding any other law to the contrary, the 
        commissioner, with the concurrence of the board of water and 
        soil resources and the commissioner of agriculture, may adopt 
        rules establishing a permit program for regulating the discharge 
        of dredged and fill material into the waters of the state as 
        necessary to obtain approval from the United States 
        Environmental Protection Agency to administer the permit program 
        under section 404 of the federal Clean Water Act, United States 
        Code, title 33, section 1344.  The rules may not be more 
        restrictive than the program under section 404, or state law, if 
        it is more restrictive than the federal program. 
           Sec. 24.  Minnesota Statutes 1994, section 103G.222, is 
        amended to read: 
           103G.222 [REPLACEMENT OF WETLANDS.] 
           Subdivision 1.  [REQUIREMENTS.] (a) After the effective 
        date of the rules adopted under section 103B.3355 or 103G.2242, 
        whichever is later, Wetlands must not be drained or filled, 
        wholly or partially, unless replaced by restoring or creating 
        wetland areas of at least equal public value under a replacement 
        plan approved as provided in section 103G.2242, a replacement 
        plan under a local governmental unit's comprehensive wetland 
        protection and management plan approved by the board under 
        section 103G.2242, subdivision 1, paragraph (c) 103G.2243, or, 
        if a permit to mine is required under section 93.481, under a 
        mining reclamation plan approved by the commissioner under the 
        permit to mine.  Mining reclamation plans shall apply the same 
        principles and standards for replacing wetlands by restoration 
        or creation of wetland areas that are applicable to mitigation 
        plans approved as provided in section 103G.2242.  Public value 
        must be determined in accordance with section 103B.3355 or a 
        comprehensive wetland protection and management plan established 
        under section 103G.2243. 
           (b) Replacement must be guided by the following principles 
        in descending order of priority: 
           (1) avoiding the direct or indirect impact of the activity 
        that may destroy or diminish the wetland; 
           (2) minimizing the impact by limiting the degree or 
        magnitude of the wetland activity and its implementation; 
           (3) rectifying the impact by repairing, rehabilitating, or 
        restoring the affected wetland environment; 
           (4) reducing or eliminating the impact over time by 
        preservation and maintenance operations during the life of the 
        activity; and 
           (5) compensating for the impact by restoring a wetland; and 
           (6) compensating for the impact by replacing or providing 
        substitute wetland resources or environments. 
           For a project involving the draining or filling of wetlands 
        in an amount not exceeding 10,000 square feet more than the 
        applicable amount in section 103G.2241, subdivision 9, paragraph 
        (a), the local government unit may make an on-site sequencing 
        determination without a written alternatives analysis from the 
        applicant. 
           (c) If a wetland is located in a cultivated field, then 
        replacement must be accomplished through restoration only 
        without regard to the priority order in paragraph (b), provided 
        that a deed restriction is placed on the altered wetland 
        prohibiting nonagricultural use for at least ten years.  
           (d) Restoration and replacement of wetlands must be 
        accomplished in accordance with the ecology of the landscape 
        area affected. 
           (e) Replacement shall be within the same watershed or 
        county as the impacted wetlands, as based on the wetland 
        evaluation in section 103G.2242, subdivision 2, except that 
        counties or watersheds in which a greater than 80 percent or 
        more of the presettlement wetland acreage is intact area may 
        accomplish replacement in counties or watersheds in which less 
        than 50 percent or more of the presettlement wetland acreage has 
        been filled, drained, or otherwise degraded areas.  Wetlands 
        impacted by public transportation projects may be replaced 
        statewide, provided they are approved by the commissioner under 
        an established wetland banking system, or except that wetlands 
        impacted in a less than 50 percent area must be replaced in a 
        less than 50 percent area, and wetlands impacted in the seven 
        county twin cities metropolitan area by public highways must be 
        replaced: 
           (1) in the affected county, or, if no restoration 
        opportunities exist in the county; 
           (2) in another seven county twin cities metropolitan area 
        county. 
           The board must maintain a public list of restoration 
        opportunities within the metropolitan area.  Disputes about 
        restoration opportunities for wetland replacement in a watershed 
        or county may be appealed to the board's committee for dispute 
        resolution.  Replacement of wetlands may be accomplished under 
        the rules for wetland banking as provided for under section 
        103G.2242. 
           (f) Except as provided in paragraph (g), for a wetland 
        located on nonagricultural land, replacement must be in the 
        ratio of two acres of replaced wetland for each acre of drained 
        or filled wetland. 
           (g) For a wetland located on agricultural land or in 
        counties or watersheds in which a greater than 80 percent or 
        more of the presettlement wetland acreage exists area, 
        replacement must be in the ratio of one acre of replaced wetland 
        for each acre of drained or filled wetland.  
           (h) Wetlands that are restored or created as a result of an 
        approved replacement plan are subject to the provisions of this 
        section for any subsequent drainage or filling. 
           (i) Except in counties or watersheds where a greater than 
        80 percent or more of the presettlement wetlands are intact 
        area, only wetlands that have been restored from previously 
        drained or filled wetlands, wetlands created by excavation in 
        nonwetlands, wetlands created by dikes or dams along public or 
        private drainage ditches, or wetlands created by dikes or dams 
        associated with the restoration of previously drained or filled 
        wetlands may be used in a statewide banking program established 
        in rules adopted under section 103G.2242, subdivision 1.  
        Modification or conversion of nondegraded naturally occurring 
        wetlands from one type to another are not eligible for 
        enrollment in a statewide wetlands bank. 
           (j) The technical evaluation panel established under 
        section 103G.2242, subdivision 2, shall ensure that sufficient 
        time has occurred for the wetland to develop wetland 
        characteristics of soils, vegetation, and hydrology before 
        recommending that the wetland be deposited in the statewide 
        wetland bank.  If the technical evaluation panel has reason to 
        believe that the wetland characteristics may change 
        substantially, the panel shall postpone its recommendation until 
        the wetland has stabilized. 
           (k) This section and sections 103G.223 to 103G.2242, 
        103G.2364, and 103G.2365 apply to the state and its departments 
        and agencies. 
           (l) For projects involving draining or filling of wetlands 
        associated with a new public transportation project in a greater 
        than 80 percent area, public transportation authorities, other 
        than the state department of transportation, may purchase 
        credits from the state wetland bank established with proceeds 
        from Laws 1994, chapter 643, section 26, subdivision 3, 
        paragraph (c).  Wetland banking credits may be purchased at the 
        least of the following, but in no case shall the purchase price 
        be less than $400 per acre:  (1) the cost to the state to 
        establish the credits; (2) the average estimated market value of 
        agricultural land in the township where the road project is 
        located, as determined by the commissioner of revenue; or (3) 
        the average value of the land in the immediate vicinity of the 
        road project as determined by the county assessor.  Public 
        transportation authorities in a less than 80 percent area may 
        purchase credits from the state at the cost to the state to 
        establish credits. 
           (m) A replacement plan for wetlands is not required for 
        individual projects that result in the filling or draining of 
        wetlands for the repair, rehabilitation, reconstruction, or 
        replacement of a currently serviceable existing state, city, 
        county, or town public road necessary, as determined by the 
        public transportation authority, to meet state or federal design 
        or safety standards or requirements, excluding new roads or 
        roads expanded solely for additional traffic capacity lanes.  
        This paragraph only applies to authorities for public 
        transportation projects that: 
           (1) minimize the amount of wetland filling or draining 
        associated with the project and consider mitigating important 
        site-specific wetland functions on-site; and 
           (2) submit annual reports by January 15 to the board and 
        members of the public requesting a copy that indicate the 
        location, amount, and type of wetlands that have been filled or 
        drained during the previous year and a projection of the 
        location, amount, and type of wetlands to be filled or drained 
        during the upcoming year. 
           The technical evaluation panel shall review minimization 
        and delineation decisions made by the public transportation 
        authority and provide recommendations regarding on-site 
        mitigation if requested to do so by the local government unit, a 
        contiguous landowner, or a member of the technical evaluation 
        panel. 
           Except for state public transportation projects, for which 
        the state department of transportation is responsible, the board 
        must replace the wetlands drained or filled by public 
        transportation projects on existing roads in critical rural and 
        urban watersheds. 
           Public transportation authorities at their discretion may 
        deviate from federal and state design standards on existing road 
        projects when practical and reasonable to avoid wetland filling 
        or draining, provided that public safety is not unreasonably 
        compromised.  The local road authority and its officers and 
        employees are exempt from liability for any tort claim for 
        injury to persons or property arising from travel on the highway 
        and related to the deviation from the design standards for 
        construction or reconstruction under this paragraph.  This 
        paragraph does not preclude an action for damages arising from 
        negligence in construction or maintenance on a highway. 
           (n) If a landowner seeks approval of a replacement plan 
        after the proposed project has already impacted the wetland, the 
        local government unit may require the landowner to replace the 
        impacted wetland at a ratio not to exceed twice the replacement 
        ratio otherwise required. 
           (o) A local government unit may request the board to 
        reclassify a county or watershed on the basis of its percentage 
        of presettlement wetlands remaining.  After receipt of 
        satisfactory documentation from the local government, the board 
        shall change the classification of a county or watershed.  If 
        requested by the local government unit, the board must assist in 
        developing the documentation.  Within 30 days of its action to 
        approve a change of wetland classifications, the board shall 
        publish a notice of the change in the Environmental Quality 
        Board Monitor. 
           (p) One hundred citizens who reside within the jurisdiction 
        of the local government unit may request the local government 
        unit to reclassify a county or watershed on the basis of its 
        percentage of presettlement wetlands remaining.  In support of 
        their petition, the citizens shall provide satisfactory 
        documentation to the local government unit.  The local 
        government unit shall consider the petition and forward the 
        request to the board under paragraph (o) or provide a reason why 
        the petition is denied. 
           Subd. 2.  [ROAD CREDIT FUNDING.] At least 50 percent of 
        money appropriated for road repair wetland replacement credit 
        under this section must be used for wetland restoration in the 
        seven county metropolitan area. 
           The board shall give priority to restoration projects that 
        will: 
           (1) intensify land use that leads to more compact 
        development or redevelopment; 
           (2) encourage public infrastructure investments which 
        connect urban neighborhoods and suburban communities, attract 
        private sector investment in commercial or residential 
        properties adjacent to the public improvement; or 
           (3) complement projects receiving funding under section 
        473.253. 
           Sec. 25.  Minnesota Statutes 1994, section 103G.2241, is 
        amended to read: 
           103G.2241 [EXEMPTIONS.] 
           (a) Subject to the conditions in paragraph (b), a 
        replacement plan for wetlands is not required for:  
           (1) activities in a wetland that was planted with annually 
        seeded crops, was in a crop rotation seeding of pasture grasses 
        or legumes, or was required to be set aside to receive price 
        support or other payments under United States Code, title 7, 
        sections 1421 to 1469, in six of the last ten years prior to 
        January 1, 1991; 
           (2) activities in a wetland that is or has been enrolled in 
        the federal conservation reserve program under United States 
        Code, title 16, section 3831, that: 
           (i) was planted with annually seeded crops, was in a crop 
        rotation seeding, or was required to be set aside to receive 
        price support or payment under United States Code, title 7, 
        sections 1421 to 1469, in six of the last ten years prior to 
        being enrolled in the program; and 
           (ii) has not been restored with assistance from a public or 
        private wetland restoration program; 
           (3) activities necessary to repair and maintain existing 
        public or private drainage systems as long as wetlands that have 
        been in existence for more than 20 years are not drained; 
           (4) activities in a wetland that has received a commenced 
        drainage determination provided for by the federal Food Security 
        Act of 1985, that was made to the county agricultural 
        stabilization and conservation service office prior to September 
        19, 1988, and a ruling and any subsequent appeals or reviews 
        have determined that drainage of the wetland had been commenced 
        prior to December 23, 1985; 
           (5) activities exempted from federal regulation under 
        United States Code, title 33, section 1344(f); 
           (6) activities authorized under, and conducted in 
        accordance with, an applicable general permit issued by the 
        United States Army Corps of Engineers under section 404 of the 
        federal Clean Water Act, United States Code, title 33, section 
        1344, except the nationwide permit in Code of Federal 
        Regulations, title 33, section 330.5, paragraph (a), clause 
        (14), limited to when a new road crosses a wetland, and all of 
        clause (26); 
           (7) activities in a type 1 wetland on agricultural land, as 
        defined in United States Fish and Wildlife Circular No. 39 (1971 
        edition) except for bottomland hardwood type 1 wetlands; 
           (8) activities in a type 2 wetland that is two acres in 
        size or less located on agricultural land; 
           (9) activities in a wetland restored for conservation 
        purposes under a contract or easement providing the landowner 
        with the right to drain the restored wetland; 
           (10) activities in a wetland created solely as a result of: 
           (i) beaver dam construction; 
           (ii) blockage of culverts through roadways maintained by a 
        public or private entity; 
           (iii) actions by public entities that were taken for a 
        purpose other than creating the wetland; or 
           (iv) any combination of (i) to (iii); 
           (11) placement, maintenance, repair, enhancement, or 
        replacement of utility or utility-type service, including the 
        transmission, distribution, or furnishing, at wholesale or 
        retail, of natural or manufactured gas, electricity, telephone, 
        or radio service or communications if: 
           (i) the impacts of the proposed project on the hydrologic 
        and biological characteristics of the wetland have been avoided 
        and minimized to the extent possible; and 
           (ii) the proposed project significantly modifies or alters 
        less than one-half acre of wetlands; 
           (12) activities associated with routine maintenance of 
        utility and pipeline rights-of-way, provided the activities do 
        not result in additional intrusion into the wetland; 
           (13) alteration of a wetland associated with the operation, 
        maintenance, or repair of an interstate pipeline; 
           (14) temporarily crossing or entering a wetland to perform 
        silvicultural activities, including timber harvest as part of a 
        forest management activity, so long as the activity limits the 
        impact on the hydrologic and biologic characteristics of the 
        wetland; the activities do not result in the construction of 
        dikes, drainage ditches, tile lines, or buildings; and the 
        timber harvesting and other silvicultural practices do not 
        result in the drainage of the wetland or public waters; 
           (15) permanent access for forest roads across wetlands so 
        long as the activity limits the impact on the hydrologic and 
        biologic characteristics of the wetland; the construction 
        activities do not result in the access becoming a dike, drainage 
        ditch or tile line; with filling avoided wherever possible; and 
        there is no drainage of the wetland or public waters; 
           (16) draining or filling up to one-half acre of wetlands 
        for the repair, rehabilitation, or replacement of a previously 
        authorized, currently serviceable existing public road, provided 
        that minor deviations in the public road's configuration or 
        filled area, including those due to changes in materials, 
        construction techniques, or current construction codes or safety 
        standards, that are necessary to make repairs, rehabilitation, 
        or replacement are allowed if the wetland draining or filling 
        resulting from the repair, rehabilitation, or replacement is 
        minimized; 
           (17) emergency repair and normal maintenance and repair of 
        existing public works, provided the activity does not result in 
        additional intrusion of the public works into the wetland and do 
        not result in the draining or filling, wholly or partially, of a 
        wetland; 
           (18) normal maintenance and minor repair of structures 
        causing no additional intrusion of an existing structure into 
        the wetland, and maintenance and repair of private crossings 
        that do not result in the draining or filling, wholly or 
        partially, of a wetland; 
           (19) duck blinds; 
           (20) aquaculture activities, including pond excavation and 
        construction and maintenance of associated access roads and 
        dikes authorized under, and conducted in accordance with, a 
        permit issued by the United States Army Corps of Engineers under 
        section 404 of the federal Clean Water Act, United States Code, 
        title 33, section 1344, but not including construction or 
        expansion of buildings; 
           (21) wild rice production activities, including necessary 
        diking and other activities authorized under a permit issued by 
        the United States Army Corps of Engineers under section 404 of 
        the federal Clean Water Act, United States Code, title 33, 
        section 1344; 
           (22) normal agricultural practices to control pests or 
        weeds, defined by rule as either noxious or secondary weeds, in 
        accordance with applicable requirements under state and federal 
        law, including established best management practices; 
           (23) activities in a wetland that is on agricultural land 
        annually enrolled in the federal Food, Agricultural, 
        Conservation, and Trade Act of 1990, United States Code, title 
        16, section 3821, subsection (a), clauses (1) to (3), as 
        amended, and is subject to sections 1421 to 1424 of the federal 
        act in effect on January 1, 1991, except that land enrolled in a 
        federal farm program is eligible for easement participation for 
        those acres not already compensated under a federal program; 
           (24) development projects and ditch improvement projects in 
        the state that have received preliminary or final plat approval, 
        or infrastructure that has been installed, or having local site 
        plan approval, conditional use permits, or similar official 
        approval by a governing body or government agency, within five 
        years before July 1, 1991.  In the seven-county metropolitan 
        area and in cities of the first and second class, plat approval 
        must be preliminary as approved by the appropriate governing 
        body; and 
           (25) activities that result in the draining or filling of 
        less than 400 square feet of wetlands. 
           (b) For the purpose of paragraph (a), clause (16), 
        "currently serviceable" means usable as is or with some 
        maintenance, but not so degraded as to essentially require 
        reconstruction.  Paragraph (a), clause (16), authorizes the 
        repair, rehabilitation, or replacement of public roads destroyed 
        by storms, floods, fire, or other discrete events, provided the 
        repair, rehabilitation, or replacement is commenced or under 
        contract to commence within two years of the occurrence of the 
        destruction or damage. 
           (c) A person conducting an activity in a wetland under an 
        exemption in paragraph (a) shall ensure that: 
           (1) appropriate erosion control measures are taken to 
        prevent sedimentation of the water; 
           (2) the activity does not block fish passage in a 
        watercourse; and 
           (3) the activity is conducted in compliance with all other 
        applicable federal, state, and local requirements, including 
        best management practices and water resource protection 
        requirements established under chapter 103H. 
           Subdivision 1.  [AGRICULTURAL ACTIVITIES.] (a) A 
        replacement plan for wetlands is not required for: 
           (1) activities in a wetland that was planted with annually 
        seeded crops, was in a crop rotation seeding of pasture grass or 
        legumes, or was required to be set aside to receive price 
        support or other payments under United States Code, title 7, 
        sections 1421 to 1469, in six of the last ten years prior to 
        January 1, 1991; 
           (2) activities in a wetland that is or has been enrolled in 
        the federal conservation reserve program under United States 
        Code, title 16, section 3831, that: 
           (i) was planted with annually seeded crops, was in a crop 
        rotation seeding, or was required to be set aside to receive 
        price support or payment under United States Code, title 7, 
        sections 1421 to 1469, in six of the last ten years prior to 
        being enrolled in the program; and 
           (ii) has not been restored with assistance from a public or 
        private wetland restoration program; 
           (3) activities in a wetland that has received a commenced 
        drainage determination provided for by the federal Food Security 
        Act of 1985, that was made to the county agricultural 
        stabilization and conservation service office prior to September 
        19, 1988, and a ruling and any subsequent appeals or reviews 
        have determined that drainage of the wetland had been commenced 
        prior to December 23, 1985; 
           (4) activities in a type 1 wetland on agricultural land, 
        except for bottomland hardwood type 1 wetlands, and activities 
        in a type 2 or type 6 wetland that is less than two acres in 
        size and located on agricultural land; 
           (5) aquaculture activities including pond excavation and 
        construction and maintenance of associated access roads and 
        dikes authorized under, and conducted in accordance with, a 
        permit issued by the United States Army Corps of Engineers under 
        section 404 of the federal Clean Water Act, United States Code, 
        title 33, section 1344, but not including construction or 
        expansion of buildings; 
           (6) wild rice production activities, including necessary 
        diking and other activities authorized under a permit issued by 
        the United States Army Corps of Engineers under section 404 of 
        the federal Clean Water Act, United States Code, title 33, 
        section 1344; 
           (7) normal agricultural practices to control noxious or 
        secondary weeds as defined by rule of the commissioner of 
        agriculture, in accordance with applicable requirements under 
        state and federal law, including established best management 
        practices; and 
           (8) agricultural activities in a wetland that is on 
        agricultural land annually enrolled in the federal Food, 
        Agricultural, Conservation, and Trade Act of 1990, United States 
        Code, title 16, section 3821, subsection (a), clauses (1) to 
        (3), as amended, and is subject to sections 1421 to 1424 of the 
        federal act in effect on January 1, 1991, except that land 
        enrolled in a federal farm program is eligible for easement 
        participation for those acres not already compensated under a 
        federal program. 
           (b) The exemption under paragraph (a), clause (4), may be 
        expanded to additional acreage, including types 1, 2, and 6 
        wetlands that are part of a larger wetland system, when the 
        additional acreage is part of a conservation plan approved by 
        the local soil and water conservation district, the additional 
        draining or filling is necessary for efficient operation of the 
        farm, the hydrology of the larger wetland system is not 
        adversely affected, and wetlands other than types 1, 2, and 6 
        are not drained or filled. 
           Subd. 2.  [DRAINAGE.] (a) For the purposes of this 
        subdivision, "public drainage system" means a drainage system as 
        defined in section 103E.005, subdivision 12, and any ditch or 
        tile lawfully connected to the drainage system. 
           (b) A replacement plan is not required for draining of type 
        1 wetlands, or up to five acres of type 2 or 6 wetlands, in an 
        unincorporated area on land that has been assessed drainage 
        benefits for a public drainage system, provided that: 
           (1) during the 20-year period that ended January 1, 1992: 
           (i) there was an expenditure made from the drainage system 
        account for the public drainage system; 
           (ii) the public drainage system was repaired or maintained 
        as approved by the drainage authority; or 
           (iii) no repair or maintenance of the public drainage 
        system was required under section 103E.705, subdivision 1, as 
        determined by the public drainage authority; and 
           (2) the wetlands are not drained for conversion to: 
           (i) platted lots; 
           (ii) planned unit, commercial, or industrial developments; 
        or 
           (iii) any development with more than one residential unit 
        per 40 acres. 
        If wetlands drained under this paragraph are converted to uses 
        prohibited under clause (2) during the ten-year period following 
        drainage, the wetlands must be replaced under section 103G.222. 
           (c) A replacement plan is not required for draining or 
        filling of wetlands, except for draining types 3, 4, and 5 
        wetlands that have been in existence for more than 25 years, 
        resulting from maintenance and repair of existing public 
        drainage systems. 
           (d) A replacement plan is not required for draining or 
        filling of wetlands, except for draining wetlands that have been 
        in existence for more than 25 years, resulting from maintenance 
        and repair of existing drainage systems other than public 
        drainage systems. 
           (e) A replacement plan is not required for draining or 
        filling of wetlands resulting from activities conducted as part 
        of a public drainage system improvement project that received 
        final approval from the drainage authority before July 1, 1991, 
        and after July 1, 1986, if: 
           (1) the approval remains valid; 
           (2) the project remains active; and 
           (3) no additional drainage will occur beyond that 
        originally approved. 
           (f) The public drainage authority may, as part of the 
        repair, install control structures, realign the ditch, construct 
        dikes along the ditch, or make other modifications as necessary 
        to prevent drainage of the wetland. 
           (g) Wetlands of all types that would be drained as a part 
        of a public drainage repair project are eligible for the 
        permanent wetlands preserve, under section 103F.516.  The board 
        shall give priority to acquisition of easements on types 3, 4, 
        and 5 wetlands that have been in existence for more than 25 
        years on public drainage systems and other wetlands that have 
        the greatest risk of drainage from a public drainage repair 
        project. 
           Subd. 3.  [FEDERAL APPROVALS.] A replacement plan for 
        wetlands is not required for: 
           (1) activities exempted from federal regulation under 
        United States Code, title 33, section 1344(f), as in effect on 
        January 1, 1991; 
           (2) activities authorized under, and conducted in 
        accordance with, an applicable general permit issued by the 
        United States Army Corps of Engineers under section 404 of the 
        federal Clean Water Act, United States Code, title 33, section 
        1344, except the nationwide permit in Code of Federal 
        Regulations, title 33, section 330.5, paragraph (a), clauses 
        (14), limited to when a new road crosses a wetland, and (26), as 
        in effect on January 1, 1991. 
           Subd. 4.  [WETLAND RESTORATION.] A replacement plan for 
        wetlands is not required for activities in a wetland restored 
        for conservation purposes under a contract or easement providing 
        the landowner with the right to drain the restored wetland. 
           Subd. 5.  [INCIDENTAL WETLANDS.] A replacement plan for 
        wetlands is not required for activities in a wetland created 
        solely as a result of: 
           (1) beaver dam construction; 
           (2) blockage of culverts through roadways maintained by a 
        public or private entity; 
           (3) actions by public or private entities that were taken 
        for a purpose other than creating the wetland; or 
           (4) any combination of clauses (1) to (3). 
           Subd. 6.  [UTILITIES; PUBLIC WORKS.] A replacement plan for 
        wetlands is not required for: 
           (1) placement, maintenance, repair, enhancement, or 
        replacement of utility or utility-type service if: 
           (i) the impacts of the proposed project on the hydrologic 
        and biological characteristics of the wetland have been avoided 
        and minimized to the extent possible; and 
           (ii) the proposed project significantly modifies or alters 
        less than one-half acre of wetlands; 
           (2) activities associated with routine maintenance of 
        utility and pipeline rights-of-way, provided the activities do 
        not result in additional intrusion into the wetland; 
           (3) alteration of a wetland associated with the operation, 
        maintenance, or repair of an interstate pipeline within all 
        existing or acquired interstate pipeline rights-of-way; 
           (4) emergency repair and normal maintenance and repair of 
        existing public works, provided the activity does not result in 
        additional intrusion of the public works into the wetland and 
        does not result in the draining or filling, wholly or partially, 
        of a wetland; 
           (5) normal maintenance and minor repair of structures 
        causing no additional intrusion of an existing structure into 
        the wetland, and maintenance and repair of private crossings 
        that do not result in the draining or filling, wholly or 
        partially, of a wetland; or 
           (6) repair and updating of existing individual sewage 
        treatment systems as necessary to comply with local, state, and 
        federal regulations. 
           Subd. 7.  [FORESTRY.] A replacement plan for wetlands is 
        not required for: 
           (1) temporarily crossing or entering a wetland to perform 
        silvicultural activities, including timber harvest as part of a 
        forest management activity, so long as the activity limits the 
        impact on the hydrologic and biologic characteristics of the 
        wetland; the activities do not result in the construction of 
        dikes, drainage ditches, tile lines, or buildings; and the 
        timber harvesting and other silvicultural practices do not 
        result in the drainage of the wetland or public waters; or 
           (2) permanent access for forest roads across wetlands so 
        long as the activity limits the impact on the hydrologic and 
        biologic characteristics of the wetland; the construction 
        activities do not result in the access becoming a dike, drainage 
        ditch, or tile line; filling is avoided wherever possible; and 
        there is no drainage of the wetland or public waters. 
           Subd. 8.  [APPROVED DEVELOPMENT.] A replacement plan for 
        wetlands is not required for development projects and ditch 
        improvement projects in the state that have received preliminary 
        or final plat approval or have infrastructure that has been 
        installed or has local site plan approval, conditional use 
        permits, or similar official approval by a governing body or 
        government agency, within five years before July 1, 1991.  As 
        used in this subdivision, "infrastructure" means public water 
        facilities, storm water and sanitary sewer piping, outfalls, 
        inlets, culverts, bridges, and any other work defined 
        specifically by a local government unit as constituting a 
        capital improvement to a parcel within the context of an 
        approved development plan. 
           Subd. 9.  [DE MINIMIS.] (a) Except as provided in 
        paragraphs (b), (c), and (d), a replacement plan for wetlands is 
        not required for draining or filling the following amounts of 
        wetlands as part of a project, regardless of the total amount of 
        wetlands filled as part of a project: 
           (1) 10,000 square feet of type 1, type 2, type 6, or type 7 
        wetland, excluding white cedar and tamarack wetlands, outside of 
        the shoreland wetland protection zone in a greater than 80 
        percent area; 
           (2) 5,000 square feet of type 1, type 2, type 6, or type 7 
        wetland, excluding white cedar and tamarack wetlands, outside of 
        the shoreland wetland protection zone in a 50 to 80 percent 
        area; 
           (3) 2,000 square feet of type 1, type 2, or type 6 wetland, 
        outside of the shoreland wetland protection zone in a less than 
        50 percent area; 
           (4) 400 square feet of wetland types not listed in clauses 
        (1) to (3) outside of shoreland wetland protection zones in all 
        counties; or 
           (5) 400 square feet of type 1, type 2, type 3, type 4, type 
        5, type 6, type 7, or type 8 wetland, in the shoreland wetland 
        protection zone, except that in a greater than 80 percent area, 
        the local government unit may increase the de minimis amount up 
        to 1,000 square feet in the shoreland protection zone in areas 
        beyond the building setback if the wetland is isolated and is 
        determined to have no direct surficial connection to the public 
        water.  To the extent that a local shoreland management 
        ordinance is more restrictive than this provision, the local 
        shoreland ordinance applies. 
           (b) The amounts listed in paragraph (a), clauses (1) to 
        (5), may not be combined on a project. 
           (c) This exemption no longer applies to a landowner's 
        portion of a wetland when the cumulative area drained or filled 
        of the landowner's portion since January 1, 1992, is the 
        greatest of: 
           (1) the applicable area listed in paragraph (a), if the 
        landowner owns the entire wetland; 
           (2) five percent of the landowner's portion of the wetland; 
        or 
           (3) 400 square feet. 
           (d) Persons proposing to conduct an activity under this 
        subdivision shall contact the board at a toll-free number to be 
        provided for information on minimizing wetland impacts.  Failure 
        to call by the person does not constitute a violation of this 
        subdivision. 
           (e) This exemption may not be combined with another 
        exemption in this section on a project. 
           Subd. 10.  [WILDLIFE HABITAT.] A replacement plan for 
        wetlands is not required for: 
           (1) deposition of spoil resulting from excavation within a 
        wetland for a wildlife habitat improvement project, if: 
           (i) the area of deposition does not exceed five percent of 
        the wetland area or one-half acre, whichever is less, and the 
        spoil is stabilized and permanently seeded to prevent erosion; 
           (ii) the project does not have an adverse impact on any 
        species designated as endangered or threatened under state or 
        federal law; and 
           (iii) the project will provide wildlife habitat improvement 
        as certified by the soil and water conservation district; or 
           (2) duck blinds. 
           Subd. 11.  [EXEMPTION CONDITIONS.] (a) A person conducting 
        an activity in a wetland under an exemption in subdivisions 1 to 
        10 shall ensure that: 
           (1) appropriate erosion control measures are taken to 
        prevent sedimentation of the water; 
           (2) the activity does not block fish passage in a 
        watercourse; and 
           (3) the activity is conducted in compliance with all other 
        applicable federal, state, and local requirements, including 
        best management practices and water resource protection 
        requirements established under chapter 103H. 
           (b) An activity is exempt if it qualifies for any one of 
        the exemptions, even though it may be indicated as not exempt 
        under another exemption. 
           (c) Persons proposing to conduct an exempt activity are 
        encouraged to contact the local government unit or the local 
        government unit's designee for advice on minimizing wetland 
        impacts. 
           Sec. 26.  Minnesota Statutes 1994, section 103G.2242, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RULES.] (a) By July 1, 1993, The board, in 
        consultation with the commissioner, shall adopt rules governing 
        the approval of wetland value replacement plans under this 
        section.  These rules must address the criteria, procedure, 
        timing, and location of acceptable replacement of wetland 
        values; may address the state establishment and administration 
        of a wetland banking program for public and private projects, 
        which may include provisions allowing monetary payment to the 
        wetland banking program for alteration of wetlands on 
        agricultural land; the methodology to be used in identifying and 
        evaluating wetland functions; the administrative, monitoring, 
        and enforcement procedures to be used; and a procedure for the 
        review and appeal of decisions under this section.  In the case 
        of peatlands, the replacement plan rules must consider the 
        impact on carbon balance described in the report required by 
        Laws 1990, chapter 587, and include the planting of trees or 
        shrubs. 
           (b) After the adoption of the rules, a replacement plan 
        must be approved by a resolution of the governing body of the 
        local government unit, consistent with the provisions of the 
        rules or a comprehensive wetland protection and management plan 
        approved under section 103G.2243. 
           (c) The board may approve as an alternative to the rules 
        adopted under this subdivision a comprehensive wetland 
        protection and management plan developed by a local government 
        unit, provided that the plan: 
           (1) incorporates sections 103A.201, subdivision 2, and 
        103G.222; 
           (2) is adopted as part of an approved local water plan 
        under sections 103B.231 and 103B.311; and 
           (3) is adopted as part of the local government's official 
        controls. 
           (d) If the local government unit fails to apply the rules, 
        or fails to implement a local program under paragraph 
        (c) comprehensive wetland protection and management plan 
        established under section 103G.2243, the government unit is 
        subject to penalty as determined by the board. 
           Sec. 27.  Minnesota Statutes 1994, section 103G.2242, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EVALUATION.] Questions concerning the public 
        value, location, size, or type of a wetland shall be submitted 
        to and determined by a technical evaluation panel after an 
        on-site inspection.  The technical evaluation panel shall be 
        composed of a technical professional employee of the board, a 
        technical professional employee of the local soil and water 
        conservation district or districts, and a technical professional 
        with expertise in water resources management appointed by the 
        local government unit.  The panel shall use the "Federal Manual 
        for Identifying and Delineating Jurisdictional Wetlands" 
        (January 1989) "United States Army Corps of Engineers Wetland 
        Delineation Manual" (January 1987), "Wetlands of the United 
        States" (United States Fish and Wildlife Service Circular 39, 
        1971 edition), and "Classification of Wetlands and Deepwater 
        Habitats of the United States" (1979 edition).  The panel shall 
        provide the wetland determination to the local government unit 
        that must approve a replacement plan under this section, and may 
        recommend approval or denial of the plan.  The authority must 
        consider and include the decision of the technical evaluation 
        panel in their approval or denial of a plan. 
           Sec. 28.  Minnesota Statutes 1994, section 103G.2242, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DECISION.] Upon receiving and considering all 
        required data, the local government unit approving a reviewing 
        replacement plan applications, banking plan applications, and 
        exemption or no-loss determination requests must act on all 
        replacement plan applications for plan approval within 60 days, 
        banking plan applications, and exemption or no-loss 
        determination requests in compliance with section 15.99. 
           Sec. 29.  Minnesota Statutes 1994, section 103G.2242, 
        subdivision 6, is amended to read: 
           Subd. 6.  [NOTICE OF APPLICATION.] (a) Except as provided 
        in paragraph (b), within ten days of receiving an application 
        for approval of a replacement plan under this section, a copy of 
        the application must be submitted to the board for publication 
        in the Environmental Quality Board Monitor and separate copies 
        of the complete application must be mailed to individual members 
        of the public who request a copy, the board of supervisors of 
        the soil and water conservation district, the members of the 
        technical evaluation panel, the managers of the watershed 
        district if one exists, the board of county commissioners, and 
        the commissioner of agriculture, and the mayors of the cities 
        within the area watershed.  At the same time, the local 
        government unit must give general notice to the public in a 
        general circulation newspaper within the area affected. natural 
        resources.  Individual members of the public who request a copy 
        shall be provided information to identify the applicant and the 
        location and scope of the project. 
           (b) Within ten days of receiving an application for 
        approval of a replacement plan under this section for an 
        activity affecting less than 10,000 square feet of wetland, a 
        summary of the application must be submitted for publication in 
        the Environmental Quality Board Monitor and separate copies 
        mailed to the members of the technical evaluation panel, 
        individual members of the public who request a copy, and the 
        managers of the watershed district, if applicable.  At the same 
        time, the local government unit must give general notice to the 
        public in a general circulation newspaper within the area 
        affected commissioner of natural resources. 
           (c) For the purpose of this subdivision, "application" 
        includes a revised application for replacement plan approval and 
        an application for a revision to an approved replacement plan if:
           (1) the wetland area to be drained or filled under the 
        revised replacement plan is at least ten percent larger than the 
        area to be drained or filled under the original replacement 
        plan; or 
           (2) the wetland area to be drained or filled under the 
        revised replacement is located more than 500 feet from the area 
        to be drained or filled under the original replacement plan. 
           Sec. 30.  Minnesota Statutes 1994, section 103G.2242, 
        subdivision 7, is amended to read: 
           Subd. 7.  [NOTICE OF DECISION.] (a) Except as provided in 
        paragraph (b), at least 30 Within ten days prior to the 
        effective date of the approval or denial of a replacement plan 
        under this section, a copy summary of the approval or denial 
        must be submitted for publication in the Environmental Quality 
        Board Monitor and separate copies mailed to members of the 
        technical evaluation panel, the applicant, the board, individual 
        members of the public who request a copy, the board of 
        supervisors of the soil and water conservation district, the 
        managers of the watershed district, the board of county 
        commissioners, if one exists, and the commissioner of 
        agriculture, and the mayors of the cities within the area 
        watershed natural resources. 
           (b) Within ten days of the decision approving or denying a 
        replacement plan under this section for an activity affecting 
        less than 10,000 square feet of wetland, a summary of the 
        approval or denial must be submitted for publication in the 
        Environmental Quality Board Monitor and separate copies mailed 
        to the applicant, individual members of the public who request a 
        copy, the members of the technical evaluation panel, and the 
        managers of the watershed district, if applicable.  At the same 
        time, the local government unit must give general notice to the 
        public in a general circulation newspaper within the area 
        affected. 
           Sec. 31.  Minnesota Statutes 1994, section 103G.2242, 
        subdivision 9, is amended to read: 
           Subd. 9.  [APPEAL.] Appeal of the a replacement plan, 
        exemption, or no-loss decision may be obtained by mailing a 
        notice of appeal petition and payment of a filing fee of $200, 
        which shall be retained by the board to defray administrative 
        costs, to the board within 30 15 days after the postmarked date 
        of the mailing specified in subdivision 7.  If appeal is not 
        sought within 30 15 days, the decision becomes final.  The local 
        government unit may require the petitioner to post a letter of 
        credit, cashier's check, or cash in an amount not to exceed 
        $500.  If the petition for hearing is accepted, the amount 
        posted must be returned to the petitioner.  Appeal may be made 
        by the wetland owner, by any of those to whom notice is required 
        to be mailed under subdivision 7, or by 100 residents of the 
        county in which a majority of the wetland is located.  Within 30 
        days after receiving a petition, the board shall decide whether 
        to grant the petition and hear the appeal.  The board shall 
        grant the petition unless the board finds that the appeal is 
        meritless, trivial, or brought solely for the purposes of delay; 
        that the petitioner has not exhausted all local administrative 
        remedies; or that the petitioner has not posted a letter of 
        credit, cashier's check, or cash if required by the local 
        government unit.  In determining whether to grant the appeal, 
        the board shall also consider the size of the wetland, other 
        factors in controversy, any patterns of similar acts by the 
        local government unit or petitioner, and the consequences of the 
        delay resulting from the appeal.  All appeals must be heard by 
        the committee for dispute resolution of the board, and a 
        decision made within 60 days of the appeal.  The decision must 
        be served by mail on the parties to the appeal, and is not 
        subject to the provisions of chapter 14.  The A decision whether 
        to grant a petition for appeal and a decision on the merits of 
        an appeal must be considered the decision of an agency in a 
        contested case for purposes of judicial review under sections 
        14.63 to 14.69. 
           Sec. 32.  Minnesota Statutes 1994, section 103G.2242, 
        subdivision 12, is amended to read: 
           Subd. 12.  [REPLACEMENT CREDITS.] (a) No public or private 
        wetland restoration, enhancement, or construction may be allowed 
        for replacement unless specifically designated for replacement 
        and paid for by the individual or organization performing the 
        wetland restoration, enhancement, or construction, and is 
        completed prior to any draining or filling of the wetland. 
           This subdivision (b) Paragraph (a) does not apply to a 
        wetland whose owner has paid back with interest the individual 
        or organization restoring, enhancing, or constructing the 
        wetland. 
           (c) Notwithstanding section 103G.222, subdivision 1, 
        paragraph (i), the following actions are eligible for 
        replacement credit as determined by the local government unit, 
        including enrollment in a statewide wetlands bank: 
           (1) Reestablishment of permanent vegetative cover on a 
        wetland that was planted with annually seeded crops, was in a 
        crop rotation seeding of pasture grasses or legumes, or was 
        required to be set aside to receive price supports or other 
        payments under United States Code, title 7, sections 1421 to 
        1469, in six of the last ten years prior to January 1, 1991.  
        Replacement credit may not exceed 50 percent of the total 
        wetland area vegetatively restored; 
           (2) Buffer areas of permanent vegetative cover established 
        on upland adjacent to replacement wetlands, provided that the 
        upland buffer must be established at the time of wetland 
        replacement and replacement credit for the buffer may not exceed 
        75 percent of the replacement wetland area and may only be used 
        for replacement above a 1:1 ratio; 
           (3) Wetlands restored for conservation purposes under 
        terminated easements or contracts, provided that up to 75 
        percent of the restored wetland area is eligible for replacement 
        credit and adjacent upland buffer areas reestablished to 
        permanent vegetative cover are eligible for replacement credit 
        above a 1:1 ratio in an amount not to exceed 25 percent of the 
        restored wetland area; and 
           (4) Water quality treatment ponds constructed to pretreat 
        storm water runoff prior to discharge to wetlands, public 
        waters, or other water bodies, provided that the water quality 
        treatment ponds must be associated with an ongoing or proposed 
        project that will impact a wetland and replacement credit for 
        the treatment ponds may not exceed 75 percent of the treatment 
        pond area and may only be used for replacement above a 1:1 ratio.
           Sec. 33.  [103G.2243] [LOCAL COMPREHENSIVE WETLAND 
        PROTECTION AND MANAGEMENT PLANS.] 
           Subdivision 1.  [GENERAL REQUIREMENTS; NOTICE AND 
        PARTICIPATION.] (a) As an alternative to the rules adopted under 
        section 103G.2242, subdivision 1, and the public value criteria 
        established or approved under section 103B.3355, a comprehensive 
        wetland protection and management plan may be developed by a 
        local government unit, or one or more local government units 
        operating under a joint powers agreement, provided that: 
           (1) a notice is made at the beginning of the planning 
        process to the board, the commissioner of natural resources, the 
        pollution control agency, local government units, and local 
        citizens to actively participate in the development of the plan; 
        and 
           (2) the plan is implemented by ordinance as part of the 
        local government's official controls under chapter 394, for a 
        county; chapter 462, for a city; chapter 366, for a town; and by 
        rules adopted under chapter 103D, for a watershed district; and 
        chapter 103B, for a watershed management organization. 
           (b) An organization that is invited to participate in the 
        development of the local plan, but declines to do so and fails 
        to participate or to provide written comments during the local 
        review process, waives the right during board review to submit 
        comments, except comments concerning consistency of the plan 
        with laws and rules administered by that agency.  In determining 
        the merit of an agency comment, the board shall consider the 
        involvement of the agency in the development of the local plan. 
           Subd. 2.  [PLAN CONTENTS.] A comprehensive wetland 
        protection and management plan may: 
           (1) provide for classification of wetlands in the plan area 
        based on: 
           (i) an inventory of wetlands in the plan area; 
           (ii) an assessment of the wetland functions listed in 
        section 103B.3355, using a methodology chosen by the technical 
        evaluation panel from one of the methodologies established or 
        approved by the board under that section; and 
           (iii) the resulting public values; 
           (2) vary application of the sequencing standards in section 
        103G.222, subdivision 1, paragraph (b), for projects based on 
        the classification and criteria set forth in the plan; 
           (3) vary the replacement standards of section 103G.222, 
        subdivision 1, paragraphs (f) and (g), based on the 
        classification and criteria set forth in the plan, for specific 
        wetland impacts provided there is no net loss of public values 
        within the area subject to the plan, and so long as: 
           (i) in a 50 to 80 percent area, a minimum acreage 
        requirement of one acre of replaced wetland for each acre of 
        drained or filled wetland requiring replacement is met within 
        the area subject to the plan; and 
           (ii) in a less than 50 percent area, a minimum acreage 
        requirement of two acres of replaced wetland for each acre of 
        drained or filled wetland requiring replacement is met within 
        the area subject to the plan, except that replacement for the 
        amount above a 1:1 ratio can be accomplished as described in 
        subdivision 12; 
           (4) in a greater than 80 percent area, allow replacement 
        credit, based on the classification and criteria set forth in 
        the plan, for any project that increases the public value of 
        wetlands, including activities on adjacent upland acres; and 
           (5) in a greater than 80 percent area, based on the 
        classification and criteria set forth in the plan, expand the 
        application of the exemptions in section 103G.2241, subdivision 
        1, paragraph (a), clause (4), to also include nonagricultural 
        land, provided there is no net loss of wetland values. 
           Subd. 3.  [BOARD REVIEW AND APPROVAL; MEDIATION; JUDICIAL 
        REVIEW.] (a) The plan is deemed approved 60 days after the local 
        government submits the final plan to the board, unless the board 
        disagrees with the plan as provided in paragraph (d). 
           (b) The board may not disapprove a plan if the board 
        determines the plan meets the requirements of this section. 
           (c) In its review of a plan, the board shall advise the 
        local government unit of those elements of the plan that are 
        more restrictive than state law and rules for purposes of 
        section 103G.237, subdivision 5. 
           (d) If the board disagrees with the plan or any elements of 
        the plan, the board shall, in writing, notify the local 
        government of the plan deficiencies and suggested changes.  The 
        board shall include in the response to the local government the 
        scientific justification, if applicable, for the board's 
        concerns with the plan.  Upon receipt of the board's concerns 
        with the plan, the local government has 60 days to revise the 
        plan and resubmit the plan to the board for reconsideration, or 
        the local government may request a hearing before the board.  
        The board shall hold a hearing within the boundaries of the 
        jurisdiction of the local government within 60 days of the 
        request for hearing.  After the hearing, the board shall, within 
        60 days, prepare a report of its decision and inform the local 
        government. 
           (e) If, after the hearing, the board and local government 
        disagree on the plan, the board shall, within 60 days, initiate 
        mediation through a neutral party.  If the board and local 
        government unit agree in writing not to use mediation or the 
        mediation does not result in a resolution of the differences 
        between the parties, then the board may commence a declaratory 
        judgment action in the district court of the county where the 
        local government unit is located.  If the board does not 
        commence a declaratory judgment action within the applicable 
        60-day period, the plan is deemed approved. 
           (f) The declaratory judgment action must be commenced 
        within 60 days after the date of the written agreement not to 
        use mediation or 60 days after conclusion of the mediation.  If 
        the board commences a declaratory judgment action, the district 
        court shall review the board's record of decision and the record 
        of decision of the local government unit.  The district court 
        shall affirm the plan if it meets the requirements of this 
        subdivision. 
           Subd. 4.  [EFFECTIVE DATE; REPLACEMENT DECISIONS.] (a) The 
        plan becomes effective as provided in subdivision 3, paragraphs 
        (d) to (f), and after adoption of the plan into the official 
        controls of the local government. 
           (b) After the effective date of a plan, a local government 
        unit shall make replacement decisions consistent with the plan. 
           Subd. 5.  [PLAN AMENDMENTS.] Amendments to the plan become 
        effective upon completion of the same process required for the 
        original plan. 
           Subd. 6.  [WATER PLANNING PROCESSES APPLY.] Except as 
        otherwise provided for in this section, all other requirements 
        relating to development of the plan must be consistent with the 
        water plan processes under sections 103B.231 and 103B.311. 
           Sec. 34.  [103G.2244] [WETLAND CREATION OR RESTORATION 
        WITHIN PIPELINE EASEMENT.] 
           A person proposing to create or restore a wetland within 
        the easement of a pipeline as defined in section 299J.02, 
        subdivision 11, shall first notify the easement holder and the 
        director of the office of pipeline safety in writing.  The 
        person may not create or restore the wetland if, within 90 days 
        after receiving the required notice, the easement holder or the 
        director of the office of pipeline safety provides to the person 
        a written notice of objection that includes the reasons for the 
        objection. 
           Sec. 35.  Minnesota Statutes 1994, section 103G.237, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COMPENSATION.] (a) The board shall award 
        compensation in an amount equal to the greater of: 
           (1) 50 percent of the value of the wetland, calculated by 
        multiplying the acreage of the wetland by the greater of: 
           (1) (i) the average equalized estimated market value of 
        agricultural property in the township as established by the 
        commissioner of revenue at the time application for compensation 
        is made; or 
           (2) (ii) the assessed value per acre of the parcel 
        containing the wetland, based on the assessed value of the 
        parcel as stated on the most recent tax statement; or 
           (2) $200 per acre of wetland subject to the replacement 
        plan, increased or decreased by the percentage change of the 
        assessed valuation of land in the township where the wetland is 
        located from the 1995 valuation. 
           (b) A person who receives compensation under paragraph (a) 
        shall convey to the board a permanent conservation easement as 
        described in section 103F.515, subdivision 4.  An easement 
        conveyed under this paragraph is subject to correction and 
        enforcement under section 103F.515, subdivisions 8 and 9. 
           Sec. 36.  Minnesota Statutes 1994, section 103G.237, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [COMPENSATION CLAIMS AGAINST LOCAL GOVERNMENT 
        UNITS.] (a) At the request of a local government unit against 
        which a compensation action is brought based at least in part on 
        the local government unit's application of section 103G.222, 
        103G.2241, 103G.2242, 103G.2243, 103G.237, or 103G.2372, or 
        rules adopted by the board to implement these sections, the 
        state, through the attorney general, shall intervene in the 
        action on behalf of the local government unit and shall 
        thereafter be considered a defendant in the action.  A local 
        government unit making a request under this paragraph shall 
        provide the attorney general with a copy of the complaint as 
        soon as possible after being served.  If requested by the 
        attorney general, the court shall grant additional time to file 
        an answer equal to the time between service of the complaint on 
        the local government unit and receipt of the complaint by the 
        attorney general. 
           (b) The state is liable for costs, damages, fees, and 
        compensation awarded in the action based on the local government 
        unit's adoption or implementation of standards that are required 
        by state law, as determined by the court.  The local government 
        unit is liable for costs, damages, fees, and compensation 
        awarded in the action based on local standards that are more 
        restrictive than state law and rules. 
           (c) For the purposes of this subdivision, "compensation 
        action" means an action in which the plaintiff seeks 
        compensation for a taking of private property under the state or 
        federal constitution. 
           Sec. 37.  Minnesota Statutes 1994, section 103G.2373, is 
        amended to read: 
           103G.2373 [ANNUAL WETLANDS REPORT.] 
           By January March 1 of each year, the commissioner of 
        natural resources and the board of water and soil resources 
        shall jointly report to the committees of the legislature with 
        jurisdiction over matters relating to agriculture, the 
        environment, and natural resources on: 
           (1) the status of implementation of state laws and programs 
        relating to wetlands; 
           (2) the quantity, quality, acreage, types, and public value 
        of wetlands in the state; and 
           (3) changes in the items in clause (2). 
           Sec. 38.  Minnesota Statutes 1994, section 115.03, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [SECTION 401 CERTIFICATIONS.] (a) The following 
        definitions apply to this subdivision: 
           (1) "section 401 certification" means a water quality 
        certification required under section 401 of the federal Clean 
        Water Act, United States Code, title 33, section 1341; and 
           (2) "nationwide permit" means a nationwide general permit 
        issued by the United States Army Corps of Engineers and listed 
        in Code of Federal Regulations, title 40, part 330, appendix A. 
           (b) The agency is responsible for providing section 401 
        certifications for nationwide permits. 
           (c) Before making a final decision on a section 401 
        certification for regional conditions on a nationwide permit, 
        the agency shall hold at least one public meeting outside the 
        seven-county metropolitan area. 
           (d) In addition to other notice required by law, the agency 
        shall provide written notice of a meeting at which the agency 
        will be considering a section 401 certification for regional 
        conditions on a nationwide permit at least 21 days before the 
        date of the meeting to the members of the senate and house of 
        representatives environment and natural resources committees, 
        the senate agriculture and rural development committee, and the 
        house of representatives agriculture committee. 
           Sec. 39.  [RULES.] 
           Within 60 days of the effective date of this section, the 
        board, in consultation with the commissioners of natural 
        resources and agriculture, shall adopt rules that amend the 
        rules previously adopted under Minnesota Statutes, sections 
        103G.2242, subdivision 1, and 103B.3355.  These rules are exempt 
        from the rulemaking provisions of Minnesota Statutes, chapter 
        14, except that Minnesota Statutes, section 14.386, applies and 
        the proposed rules must be submitted to the senate and house 
        environment and natural resource committees at least 30 days 
        prior to being published in the State Register.  The amended 
        rules are effective for two years from the date of publication 
        of the rules in the State Register unless they are superseded by 
        permanent rules. 
           Sec. 40.  [WETLAND BANKING STUDY; REPORT.] 
           The commissioner of natural resources, in consultation with 
        the board of water and soil resources and the commissioner of 
        agriculture, shall ensure that the wetlands conservation 
        planning process currently under way includes a study of 
        alternative procedures and policies for improving the current 
        wetland banking system in the state.  The study and any 
        resulting recommendations must be reported to the appropriate 
        policy committees of the legislature by June 30, 1997, or upon 
        completion of the wetlands conservation planning final report, 
        whichever is later.  
           Sec. 41.  [LINCOLN-PIPESTONE CALCAREOUS FEN.] 
           The fen management plan prepared pursuant to Minnesota 
        Statutes, section 103G.223 for sections 5, 6, 8, and 17 of 
        T114N, R46W, and the Burr Well Field must be jointly developed 
        by the commissioner of natural resources and the 
        Lincoln-Pipestone rural water district.  A fen management plan 
        is not required to appropriate within the existing permitted 
        pumping rate of 750 gallons per minute or permitted volume of up 
        to 400,000,000 gallons per year. 
           Sec. 42.  [APPROPRIATION.] 
           (a) $130,000 is appropriated from the general fund to the 
        board of water and soil resources for providing assistance to 
        local governmental units in developing and implementing 
        comprehensive wetland protection and management plans under 
        Minnesota Statutes, section 103G.2243.  
           (b) $120,000 is appropriated from the general fund to the 
        board of water and soil resources for grants to local 
        governmental units for developing and implementing comprehensive 
        wetland protection and management plans under Minnesota 
        Statutes, section 103G.2243.  
           (c) $100,000 is appropriated from the general fund to the 
        board of water and soil resources for grants to local government 
        units to develop public ditch inventories, including maps and 
        histories of public ditch systems. 
           (d) $50,000 is appropriated from the general fund to the 
        board of water and soil resources for a grant to the association 
        of Minnesota counties to conduct workshops for public drainage 
        authorities. 
           Sec. 43.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall renumber Minnesota Statutes, 
        section 103G.005, subdivision 18, as section 103G.005, 
        subdivision 15a. 
           Sec. 44.  [REPEALER.] 
           Minnesota Statutes 1994, section 103G.2242, subdivision 13, 
        is repealed. 
           Sec. 45.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment, 
        except that section 24, subdivision 1, paragraph (e), does not 
        apply to replacement completed using wetland banking credits 
        established by a person who submitted a complete wetland banking 
        application to a local government unit by April 1, 1996. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 11, 1996, 11:44 a.m.