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

CHAPTER 361--S.F.No. 3275
An act
relating to state government; appropriating money from constitutionally
dedicated funds; modifying certain statutory provisions and laws for
environment, natural resources, outdoor heritage, and energy; modifying fees,
accounts, disposition of certain receipts, and audit requirements; providing for
certain registration, training, and licensing exemptions; modifying outdoor
recreation and recreational vehicle provisions; modifying the Water Law;
regulating public utilities; modifying and establishing programs; requiring
studies and reports; modifying and requiring the transfer of appropriations;
appropriating money;amending Minnesota Statutes 2008, sections 3.8851,
subdivision 7; 3.9741, by adding a subdivision; 84.025, subdivision 9; 84.027,
subdivision 15; 84.0856; 84.0857; 84.415, by adding a subdivision; 84.777,
subdivision 2; 84.788, subdivision 2; 84.798, subdivision 2; 84.82, subdivisions
3, 6, by adding a subdivision; 84.8205, subdivision 1; 84.92, subdivisions 9, 10;
84.922, subdivision 5, by adding a subdivision; 84.925, subdivision 1; 84.9256,
subdivision 1; 84.928, subdivision 5; 84D.10, by adding a subdivision; 84D.13,
subdivision 5; 85.015, subdivision 14; 85.052, subdivision 4; 85.22, subdivision
5; 85.32, subdivision 1; 85.41, subdivision 3; 85.42; 85.43; 85.46, as amended;
86B.301, subdivision 2; 86B.501, by adding a subdivision; 88.17, subdivisions
1, 3; 88.79, subdivision 2; 89.17; 90.041, by adding a subdivision; 90.121;
90.14; 97A.056, subdivision 5, by adding subdivisions; 97B.665, subdivision
2; 103A.305; 103B.702, by adding a subdivision; 103G.271, subdivision 3;
103G.285, subdivision 5; 103G.301, subdivision 6; 103G.305, subdivision 2;
103G.315, subdivision 11; 103G.515, subdivision 5; 103G.615, subdivision
2; 115.55, by adding a subdivision; 116.07, subdivisions 4, 4h; 116C.779,
subdivision 1; 116D.04, subdivision 2a, by adding a subdivision; 116J.437,
subdivision 1; 216B.16, subdivisions 14, 15; 216B.2401; 216B.62, by adding a
subdivision; 290.431; 290.432; 326B.106, subdivision 12; 473.1565, subdivision
2; Minnesota Statutes 2009 Supplement, sections 84.415, subdivision 6;
84.793, subdivision 1; 84.922, subdivision 1a; 84.9275, subdivision 1; 84.928,
subdivision 1; 85.015, subdivision 13; 85.053, subdivision 10; 85.53, subdivision
2, by adding a subdivision; 86A.09, subdivision 1; 97A.056, subdivision 3;
103G.201; 114D.50, by adding a subdivision; 129D.17, subdivision 2; Laws
1981, chapter 222, sections 1; 2; 3; 4, subdivision 2; Laws 2009, chapter 37,
article 2, section 13; Laws 2009, chapter 138, article 2, section 4; Laws 2009,
chapter 172, article 2, section 4; article 5, sections 8; 10; Laws 2010, chapter 215,
article 3, section 4, subdivision 10; proposing coding for new law in Minnesota
Statutes, chapters 103A; 103G; 116C; 216B; 383B; repealing Minnesota Statutes
2008, sections 90.172; 97B.665, subdivision 1; 103G.295; 103G.650; Minnesota
Statutes 2009 Supplement, sections 3.3006; 84.02, subdivisions 4a, 6a, 6b;
88.795; Laws 1981, chapter 222, section 7; Laws 2009, chapter 172, article
5, section 9.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
OUTDOOR HERITAGE


Section 1. OUTDOOR HERITAGE APPROPRIATION.
The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
outdoor heritage fund and are available for the fiscal years indicated for each purpose. The
figures "2010" and "2011" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
"The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium"
is fiscal years 2010 and 2011. The appropriations in this article are onetime.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 2. OUTDOOR HERITAGE

Subdivision 1.Total Appropriation
$
-0-
$
58,939,000
This appropriation is from the outdoor
heritage fund. The amounts that may be
spent for each purpose are specified in the
following subdivisions.

Subd. 2.Prairies
-0-
18,093,000


(a) Accelerated Prairie Grassland Restoration
and Enhancement Program on DNR Lands
$5,833,000 in fiscal year 2011 is to the
commissioner of natural resources to
accelerate the protection, restoration, and
enhancement of native prairie vegetation.
A list of proposed land acquisitions,
restorations, and enhancements, describing
the types and locations of acquisitions,
restorations, and enhancements, must
be provided as part of the required
accomplishment plan. All restorations must
comply with subdivision 9, paragraph (b).

(b) The Green Corridor Legacy Program
$1,651,000 in fiscal year 2011 is to the
commissioner of natural resources for
an agreement with the Redwood Area
Communities Foundation to acquire and
restore land for purposes allowed under
the Minnesota Constitution, article XI,
section 15, in Redwood, Renville, Brown,
Nicollet, Murray, Lyon, Yellow Medicine,
Chippewa, and Cottonwood Counties to be
added to the state outdoor recreation system
as defined in Minnesota Statutes, chapter
86A. A list of proposed fee title acquisitions
must be provided as part of the required
accomplishment plan. The commissioner of
natural resources must agree in writing to
each proposed acquisition. All restorations
must comply with subdivision 9, paragraph
(b).


(c) Prairie Heritage Fund - Acquisition and
Restoration
$3,015,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
and restore land to be added to the state
wildlife management area system. A list
of proposed fee title acquisitions and a list
of proposed restoration projects, describing
the types and locations of restorations,
must be provided as part of the required
accomplishment plan. The commissioner of
natural resources must agree in writing to
each proposed acquisition. All restorations
must comply with subdivision 9, paragraph
(b).


(d) Northern Tallgrass Prairie National
Wildlife Refuge Protection
$2,041,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with The Nature Conservancy
to acquire land or permanent easements
within the Northern Tallgrass Prairie Habitat
Preservation Area in western Minnesota for
addition to the Northern Tallgrass Prairie
National Wildlife Refuge. A list of proposed
fee title and permanent easement acquisitions
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement stewardship
plan.

(e) Rum River - Cedar Creek Initiative
$1,900,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with Anoka County to acquire fee
title to land at the confluence of the Rum
River and Cedar Creek in Anoka County.
Land acquired in fee must remain open to
hunting and fishing, consistent with the
capacity of the land, during the open season,
as determined in writing by the commissioner
of natural resources. All restorations must
comply with subdivision 9, paragraph (b).

(f) Minnesota Prairie Recovery Project
$3,653,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with The Nature Conservancy
for a pilot project to acquire interests in
land and restore and enhance prairie and
prairie/wetland habitat in the prairie regions
of western and southwestern Minnesota.
The Nature Conservancy may acquire land
in fee or through permanent conservation
easements. A list of proposed fee title and
permanent conservation easements, and a list
of proposed restorations and enhancements,
must be provided as part of the required
accomplishment plan. All restorations must
comply with subdivision 9, paragraph (b).
The commissioner of natural resources must
agree in writing to each acquisition of interest
in land, restoration project, and enhancement
project. The accomplishment plan must
include an easement stewardship plan.

Subd. 3.Forests
-0-
5,603,000


(a) Critical Shoreline Habitat Protection
Program
$816,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with the Minnesota Land Trust to
acquire permanent conservation easements
protecting critical shoreline habitats in
Koochiching, Cook, Lake, and St. Louis
County portions of the northern forest
area in northern Minnesota and provide
stewardship for those easements. A list of
proposed conservation easement acquisitions
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement stewardship
plan.


(b) Protect Key Industrial Forest Land Tracts
in Central Minnesota
$594,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with Cass County to acquire lands
that assist with gaining access for restoration
and enhancement purposes to existing public
land tracts. A list of proposed acquisitions
must be provided as part of the required
accomplishment plan.


(c) Little Nokasippi River Wildlife
Management Area
$843,000 in fiscal year 2011 is to the
commissioner of natural resources
for acceleration of agency programs and
cooperative agreements to acquire interests in
land within the boundaries of the Minnesota
National Guard Army compatible use buffer
(ACUB) program. Of this appropriation,
$225,000 is for the Department of Natural
Resources to acquire land for wildlife
management areas and $618,000 is for an
agreement with the Board of Water and Soil
Resources to acquire permanent conservation
easements. A list of proposed acquisitions
must be provided as part of the required
accomplishment plan.


(d) Accelerated Forest Wildlife Habitat
Program
$1,791,000 in fiscal year 2011 is to the
commissioner of natural resources for
acceleration of agency programs to acquire,
in fee, land for state forests and restore and
enhance state forest habitat. A list of projects
including proposed fee title acquisitions
and restorations and enhancements must
be provided as part of the required
accomplishment plan. All restorations must
comply with subdivision 9, paragraph (b).


(e) Northeastern Minnesota Sharp-Tailed
Grouse Habitat
$1,559,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with Pheasants Forever to acquire
interests in land, and to restore and enhance
habitat for sharp-tailed grouse in Kanabec,
Aitkin, and St. Louis Counties in cooperation
with the Minnesota Sharp-Tailed Grouse
Society. A list of proposed acquisitions
and a list of proposed restorations and
enhancements must be provided as part of
the required accomplishment plan. The
commissioner of natural resources must
agree in writing to each acquisition of interest
in land, restoration project, and enhancement
project. All restorations must comply with
subdivision 9, paragraph (b).

Subd. 4.Wetlands
-0-
16,905,000


(a) Accelerated Shallow Lake and Wetland
Enhancement and Restoration Program
$6,505,000 in fiscal year 2011 is to the
commissioner of natural resources to assess,
enhance, and restore shallow lake and
wetland habitats, to acquire land in fee or
through permanent conservation easements
for shallow lake program restoration, and to
provide stewardship for acquired easements
in cooperation with Ducks Unlimited, Inc.
Of this appropriation, $1,463,000 is for the
Department of Natural Resources agency
program acceleration and $5,042,000 is for
an agreement with Ducks Unlimited, Inc. A
list of proposed projects, describing the types
and locations of land acquisitions, restoration
projects, and enhancement projects,
must be provided as part of the required
accomplishment plan. The commissioner
of natural resources must agree in writing
to each acquisition, restoration project, and
enhancement project. The accomplishment
plan must include an easement stewardship
plan. All restorations must comply with
subdivision 9, paragraph (b).


(b) Accelerate the Waterfowl Production Area
Program in Minnesota
$3,505,000 in fiscal year 2011 is to the
commissioner of natural resources for
an agreement with Pheasants Forever to
acquire and restore wetland and related
upland habitats, in cooperation with the
United States Fish and Wildlife Service
and Ducks Unlimited, Inc., to be managed
as waterfowl production areas. A list of
proposed acquisitions and a list of proposed
projects, describing the types and locations
of restorations, must be provided as part
of the required accomplishment plan. All
restorations must comply with subdivision
9, paragraph (b).


(c) Reinvest in Minnesota Wetlands Reserve
Program Acquisition and Restoration
$6,895,000 in fiscal year 2011 is to the Board
of Water and Soil Resources to acquire
permanent conservation easements and
restore wetlands and associated uplands
in cooperation with the United States
Department of Agriculture Wetlands Reserve
Program. A list of proposed acquisitions
and a list of proposed projects, describing
the types and locations of restorations,
must be provided as part of the required
accomplishment plan. All restorations must
comply with subdivision 9, paragraph (b).

Subd. 5.Habitat
-0-
17,563,000

(a) Metro Big Rivers Habitat Program
$2,397,000 in fiscal year 2011 is to
the commissioner of natural resources
for agreements for projects to protect,
restore, and enhance natural systems of
the Minnesota River, St. Croix River,
Mississippi River, and their major tributaries
as follows: $500,000 with Minnesota Valley
National Wildlife Refuge Trust, Inc. for
fee title land acquisition; $1,500,000 with
the Trust for Public Land for fee title land
acquisition; $227,300 with the Friends
of the Mississippi River for restoration,
enhancement, and conservation easement
acquisition; and $169,700 with Great River
Greening for restoration and enhancement.
The accomplishment plan must include an
easement stewardship plan. All restorations
must comply with subdivision 9, paragraph
(b).


(b) Accelerated Aquatic Management Area
Acquisition
$3,416,000 in fiscal year 2011 is to the
commissioner of natural resources to
accelerate land acquisition by fee title and
easements to be added to the state aquatic
management area system as defined in
Minnesota Statutes, chapter 86A, and to
restore and enhance stream habitat and lake
habitat. Land acquired in fee must remain
open to hunting and fishing, consistent
with the capacity of the land, during the
open season, as determined in writing by
the commissioner of natural resources.
A list of proposed fee title and easement
acquisitions, stream habitat restorations and
enhancements, and lake habitat restorations
and enhancements must be provided as part
of the required accomplishment plan.


(c) Cold Water River and Stream Restoration,
Protection, and Enhancement
$1,269,000 in fiscal year 2011 is to the
commissioner of natural resources for
an agreement with Trout Unlimited to
restore, enhance, and protect cold water
river and stream habitats in Minnesota. A
list of proposed acquisitions and a list of
proposed projects, describing the types and
locations of restorations and enhancements,
must be provided as part of the required
accomplishment plan. The commissioner of
natural resources must agree in writing to
each proposed acquisition, restoration, and
enhancement. All restorations must comply
with subdivision 9, paragraph (b).


(d) Dakota County Riparian and Lakeshore
Protection and Restoration
$2,097,000 in fiscal year 2011 is to the
commissioner of natural resources for
an agreement with Dakota County for
acquisition of permanent easements and
enhancement and restoration of aquatic
and associated upland habitat. A list of
proposed acquisitions and restorations
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement stewardship
plan. All restorations must comply with
subdivision 9, paragraph (b).

(e) Valley Creek Protection Partnership
$1,218,000 in fiscal year 2011 is to the
commissioner of natural resources for
agreements on projects to protect, restore,
and enhance natural systems of Valley Creek
in Washington County as follows: $838,000
with Minnesota Land Trust; $218,000 with
Washington County; $100,000 with the
Belwin Conservancy; $50,000 with Trout
Unlimited; and $12,000 with the Valley
Branch Watershed District. All restorations
must comply with subdivision 9, paragraph
(b).


(f) Anoka Sand Plain Restoration and
Enhancement
$747,000 in fiscal year 2011 is to the
commissioner of natural resources for
an agreement with Great River Greening
to restore and enhance habitat on public
property in the Anoka Sand Plain in Anoka,
Chisago, Isanti, Benton, Washington,
Morrison, and Sherburne Counties. All
restorations must comply with subdivision
9, paragraph (b).


(g) Lower Mississippi River Habitat
Restoration Acceleration
$1,000,000 in fiscal year 2011 is to
the commissioner of natural resources
to accelerate agency programs and for
cooperative agreements to acquire land in
the Root River watershed. A list of proposed
acquisitions must be provided as part of
the required accomplishment plan. The
commissioner of natural resources must
agree in writing to each proposed acquisition,
restoration, and enhancement. All
restorations must comply with subdivision
9, paragraph (b).


(h) Washington County St. Croix River Land
Protection
$1,033,000 in fiscal year 2011 is to the
commissioner of natural resources for an
agreement with Washington County to
acquire permanent easements to protect
habitat associated with the St. Croix River
Valley. A list of proposed acquisitions
must be provided as part of the required
accomplishment plan. The accomplishment
plan must include an easement stewardship
plan.


(i) Outdoor Heritage Conservation Partners
Grant Program
$4,386,000 in fiscal year 2011 is to the
commissioner of natural resources for a
program to provide competitive, matching
grants of up to $400,000 to local, regional,
state, and national organizations, including
government, for enhancement, restoration,
or protection of forests, wetlands, prairies,
and habitat for fish, game, or wildlife
in Minnesota. Up to four percent of
this appropriation may be used by the
commissioner of natural resources for
administering the grant program. Grantees
may acquire land or interests in land.
Easements must be permanent. Land
acquired in fee must be open to hunting
and fishing during the open season unless
otherwise provided by state law. The
commissioner of natural resources must
agree in writing to each proposed acquisition
of land or interest in land. The program
shall require a match of at least ten percent
from nonstate sources for grants of $100,000
or less and a match of at least 15 percent
from nonstate sources for grants over
$100,000. Up to one-third of the match
may be in-kind resources. The criteria
for evaluating grant applications must
include, in a balanced and equally weighted
order of precedence, the amount of habitat
restored, enhanced, or protected; local
support; degree of collaboration; urgency;
capacity to achieve multiple benefits;
habitat benefits provided; consistency with
current conservation science; adjacency
to protected lands; full funding of the
project; supplementing existing funding;
public access for hunting and fishing during
the open season; sustainability; and use
of native plant materials. All projects
must conform to the Minnesota statewide
conservation and preservation plan. Wildlife
habitat projects must also conform to the
Minnesota wildlife action plan. Subject to
the evaluation criteria and requirements
of this paragraph and Minnesota Statutes,
the commissioner of natural resources
shall give priority to organizations that
have a history or charter to receive private
contributions for local conservation or
habitat projects when evaluating projects of
equal value. Priority may be given to projects
acquiring land or easements associated
with existing wildlife management areas.
All restoration or enhancement projects
must be on land permanently protected by
conservation easement or public ownership
or in public waters as defined in Minnesota
Statutes, section 103G.005, subdivision 15.
Subdivision 9 applies to grants awarded
under this paragraph. All restorations must
comply with subdivision 9, paragraph (b).
This appropriation is available until June
30, 2014, at which time all grant project
work must be completed and final products
delivered, unless an earlier date is specified
in the grant agreement. No less than five
percent of the amount of each grant must
be held back from reimbursement until
the grant recipient has completed a grant
accomplishment report by the deadline and
in the form prescribed by and satisfactory to
the Lessard-Sams Outdoor Heritage Council.

Subd. 6.Administration and Other
0
775,000

(a) Contract Management
$175,000 in fiscal year 2011 is to the
commissioner of natural resources for
contract management duties assigned in this
section.

(b) Legislative Coordinating Commission
$600,000 in fiscal year 2011 is to the
Legislative Coordinating Commission for
administrative expenses of the Lessard-Sams
Outdoor Heritage Council and for
compensation and expense reimbursement
of council members.

Subd. 7.Availability of Appropriation
Money appropriated in this section may
not be spent on activities unless they are
directly related to and necessary for a
specific appropriation and are specified in the
accomplishment plan. Money appropriated
in this section must not be spent on indirect
costs or other institutional overhead charges.
Unless otherwise provided, the amounts
in this section are available until June 30,
2013, when projects must be completed and
final accomplishments reported. Funds for
restoration or enhancement are available
until June 30, 2015, or four years after
acquisition, whichever is later, in order to
complete restoration or enhancement work.
If a project receives federal funds, the time
period of the appropriation is extended to
equal the availability of federal funding.
Funds appropriated for fee title acquisition of
land may be used to restore and enhance land
acquired with the appropriation.

Subd. 8.Accomplishment Plans
It is a condition of acceptance of the
appropriations made by this section that the
agency or entity using the appropriation shall
submit to the council an accomplishment
plan and periodic accomplishment
reports in the form determined by the
Lessard-Sams Outdoor Heritage Council.
The accomplishment plan must account for
the use of the appropriation and outcomes
of the expenditure in measures of wetlands,
prairies, forests, and fish, game, and wildlife
habitat restored, protected, and enhanced.
The plan must include an evaluation of
results. None of the money provided in this
section may be expended unless the council
has approved the pertinent accomplishment
plan.

Subd. 9.Project Requirements
(a) As a condition of accepting an
appropriation in this section, any agency
or entity receiving an appropriation must
comply with this subdivision for any project
funded in whole or in part with funds from
the appropriation.
(b) To the extent possible, a person
conducting restoration with money
appropriated in this section must plant
vegetation or sow seed only of ecotypes
native to Minnesota, and preferably of the
local ecotype, using a high diversity of
species originating from as close to the
restoration site as possible, and protect
existing native prairies, grasslands, forests,
wetlands, and other aquatic systems from
genetic contamination.
(c) All conservation easements acquired with
money appropriated in this section must: (1)
be permanent; (2) specify the parties to an
easement; (3) specify all of the provisions
of an agreement that are permanent; (4)
specify the habitat types and location
being protected; (5) where appropriate for
conservation or water protection outcomes,
require the grantor to employ practices
retaining water on the eased land as long as
practicable; (6) specify the responsibilities
of the parties for habitat enhancement and
restoration and the associated costs of these
activities; (7) be sent to the office of the
Lessard-Sams Outdoor Heritage Council; (8)
include a long-term stewardship plan and
identify the sources and amount of funding
for monitoring and enforcing the easement
agreement; and (9) identify the parties
responsible for monitoring and enforcing the
easement agreement.
(d) For all restorations, a recipient must
prepare and retain an ecological restoration
and management plan that, to the degree
practicable, is consistent with current
conservation science and ecological goals
for the restoration site. Consideration should
be given to soil, geology, topography, and
other relevant factors that would provide
the best chance for long-term success of the
restoration projects. The plan shall include
the proposed timetable for implementing
the restoration, including, but not limited
to, site preparation, establishment of
diverse plant species, maintenance, and
additional enhancement to establish the
restoration; identify long-term maintenance
and management needs of the restoration
and how the maintenance, management, and
enhancement will be financed; and use the
current conservation science to achieve the
best restoration.
(e) For new lands acquired, a recipient
must prepare a restoration and management
plan in compliance with paragraph (d),
including identification of sufficient funding
for implementation.
(f) To ensure public accountability for the
use of public funds, a recipient must provide
to the Lessard-Sams Outdoor Heritage
Council documentation of the selection
process used to identify parcels acquired
in fee or permanent conservation easement
and provide the council with documentation
of all related transaction costs, including,
but not limited to, appraisals, legal fees,
recording fees, commissions, other similar
costs, and donations. This information
must be provided for all parties involved
in the transaction. The recipient shall
also report to the Lessard-Sams Outdoor
Heritage Council any difference between the
acquisition amount paid to the seller and the
state-certified or state-reviewed appraisal, if
a state-certified or state-reviewed appraisal
was conducted. Acquisition data such
as appraisals may remain private during
negotiations but must ultimately be made
public according to Minnesota Statutes,
chapter 13.
(g) Except as otherwise provided in this
section, all restoration and enhancement
projects funded with money appropriated in
this section must be on land permanently
protected by a conservation easement or
public ownership or in public waters as
defined in Minnesota Statutes, section
103G.005, subdivision 15.
(h) To the extent an appropriation is used to
acquire an interest in real property, a recipient
of an appropriation under this section must
provide to the Lessard-Sams Outdoor
Heritage Council and the commissioner
of management and budget an analysis of
increased operations and maintenance costs
likely to be incurred by public entities as
a result of the acquisition and of how these
costs are to be paid.
(i) A recipient of money from an
appropriation in this section must give
consideration to and make timely written
contact with the Minnesota Conservation
Corps or its successor for consideration of
possible use of their services to contract for
restoration and enhancement services. A
copy of the written contact must be filed with
the Lessard-Sams Outdoor Heritage Council
within 15 days of execution.
(j) A recipient of money from this section
must erect signage according to Laws 2009,
chapter 172, article 5, section 10.


Subd. 10.Payment Conditions and Capital
Equipment Expenditures
All agreements, grants, or contracts referred
to in this section must be administered on
a reimbursement basis unless otherwise
provided in this section. Notwithstanding
Minnesota Statutes, section 16A.41,
expenditures directly related to each
appropriation's purpose made on or after July
1, 2010, are eligible for reimbursement unless
otherwise provided in this section. Periodic
reimbursement must be made upon receiving
documentation that the deliverable items
articulated in the approved accomplishment
plan have been achieved, including partial
achievements as evidenced by approved
progress reports. Reasonable amounts may
be advanced to projects to accommodate
cash flow needs or to match federal share.
The advances must be approved as part of
the accomplishment plan. Capital equipment
expenditures for specific items in excess of
$10,000 must be approved as part of the
accomplishment plan.


Subd. 11.Purchase of Recycled and Recyclable
Materials
A political subdivision, public or private
corporation, or other entity that receives an
appropriation in this section must use the
appropriation in compliance with Minnesota
Statutes, section 16B.121, regarding
purchase of recycled, repairable, and durable
materials, and section 16B.122, regarding
purchase and use of paper stock and printing.

Subd. 12.Accessibility
Structural and nonstructural facilities must
meet the design standards in the Americans
with Disabilities Act (ADA) accessibility
guidelines.

Subd. 13.Land Acquisition Restrictions
(a) An interest in real property, including, but
not limited to, an easement or fee title, that
is acquired with money appropriated under
this section must be used in perpetuity or for
the specific term of an easement interest for
the purpose for which the appropriation was
made.
(b) A recipient of funding who acquires
an interest in real property subject to this
subdivision may not alter the intended use
of the interest in real property or convey
any interest in the real property acquired
with the appropriation without the prior
review and approval of the Lessard-Sams
Outdoor Heritage Council or its successor.
The council shall notify the chairs and
ranking minority members of the legislative
committees and divisions with jurisdiction
over the outdoor heritage fund at least 15
business days before approval under this
paragraph. The council shall establish
procedures to review requests from recipients
to alter the use of or convey an interest in
real property. These procedures shall allow
for the replacement of the interest in real
property with another interest in real property
meeting the following criteria: (1) the
interest is at least equal in fair market value,
as certified by the commissioner of natural
resources, to the interest being replaced; and
(2) the interest is in a reasonably equivalent
location and has a reasonably equivalent
useful conservation purpose compared to the
interest being replaced.
(c) A recipient of funding who acquires an
interest in real property under paragraph
(a) must separately record a notice of
funding restrictions in the appropriate local
government office where the conveyance
of the interest in real property is filed. The
notice of funding agreement must contain:
(1) a legal description of the interest in real
property covered by the funding agreement;
(2) a reference to the underlying funding
agreement; (3) a reference to this section; and
(4) the following statement: "This interest
in real property shall be administered in
accordance with the terms, conditions, and
purposes of the grant agreement controlling
the acquisition of the property. The interest
in real property, or any portion of the interest
in real property, shall not be sold, transferred,
pledged, or otherwise disposed of or further
encumbered without obtaining the prior
written approval of the Lessard-Sams
Outdoor Heritage Council or its successor.
The ownership of the interest in real property
shall transfer to the state if: (1) the holder of
the interest in real property fails to comply
with the terms and conditions of the grant
agreement or accomplishment plan; or
(2) restrictions are placed on the land that
preclude its use for the intended purpose as
specified in the appropriation."

Subd. 14.Real Property Interest Report
By December 1 each year, a recipient of
money appropriated under this section that
is used for the acquisition of an interest in
real property, including, but not limited to,
an easement or fee title, must submit annual
reports on the status of the real property to
the Lessard-Sams Outdoor Heritage Council
or its successor in a form determined by the
council. The responsibility for reporting
under this section may be transferred by
the recipient of the appropriation to another
person or entity that holds the interest in the
real property. To complete the transfer of
reporting responsibility, the recipient of the
appropriation must: (1) inform the person to
whom the responsibility is transferred of that
person's reporting responsibility; (2) inform
the person to whom the responsibility is
transferred of the property restrictions under
subdivision 13; (3) provide written notice
to the council of the transfer of reporting
responsibility, including contact information
for the person to whom the responsibility is
transferred; and (4) provide the Lessard-Sams
Outdoor Heritage Council or its successor
written documentation from the person or
entity holding the interest in real property
certifying its acceptance of all reporting
obligations and responsibilities previously
held by the recipient of the appropriation.
After the transfer, the person or entity that
holds the interest in the real property is
responsible for reporting requirements under
this section.

Subd. 15.Successor Organizations
The Lessard-Sams Outdoor Heritage council
may approve the continuation of a project
with an organization that has adopted a new
name. Continuation of a project with an
organization that has undergone a significant
change in mission, structure, or purpose
will require: (1) notice to the chairs of
committees with relevant jurisdiction; and (2)
presentation by the Lessard-Sams Outdoor
Heritage Council of proposed legislation
either ratifying or rejecting continued
involvement with the new organization.

    Sec. 3. Minnesota Statutes 2009 Supplement, section 85.53, is amended by adding a
subdivision to read:
    Subd. 5. Restoration evaluations. Beginning July 1, 2011, the commissioner of
natural resources shall convene a technical evaluation panel comprised of five members,
including one technical representative from the Board of Water and Soil Resources, one
technical representative from the Department of Natural Resources, one technical expert
from the University of Minnesota or the Minnesota State Colleges and Universities,
and two other representatives with expertise related to the project being evaluated.
The commissioner may add a technical representative from a unit of federal or local
government. The members of the technical evaluation panel may not be associated with
the restoration, may vary depending upon the projects being reviewed, and shall avoid any
potential conflicts of interest. Each year, the commissioner shall assign a coordinator to
identify a sample of up to ten habitat restoration projects completed with parks and trails
funding. The coordinator shall secure the restoration plans for the projects specified and
direct the technical evaluation panel to evaluate the restorations relative to the law, current
science, and the stated goals and standards in the restoration plan and, when applicable, to
the Board of Water and Soil Resources' native vegetation establishment and enhancement
guidelines. The coordinator shall summarize the findings of the panel and provide a report
to the chairs of the respective house of representatives and senate policy and finance
committees with jurisdiction over natural resources and spending from the parks and
trails fund. The report shall determine if the restorations are meeting planned goals, any
problems with the implementation of restorations, and, if necessary, recommendations on
improving restorations. The report shall be focused on improving future restorations. Up
to one-tenth of one percent of forecasted receipts from the parks and trails fund may be
used for restoration evaluations under this section.

    Sec. 4. Minnesota Statutes 2009 Supplement, section 97A.056, subdivision 3, is
amended to read:
    Subd. 3. Council recommendations. (a) The council shall make recommendations
to the legislature on appropriations of money from the outdoor heritage fund that are
consistent with the Constitution and state law and that will achieve the outcomes of
existing natural resource plans, including, but not limited to, the Minnesota Statewide
Conservation and Preservation Plan, that directly relate to the restoration, protection, and
enhancement of wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that
prevent forest fragmentation, encourage forest consolidation, and expand restored native
prairie. In making recommendations, the council shall consider a range of options that
would best restore, protect, and enhance wetlands, prairies, forests, and habitat for fish,
game, and wildlife, and shall not adopt definitions of "restore", "protect", or "enhance" that
would limit the council from considering options that are consistent with the Constitution.
The council shall submit its initial recommendations to the legislature no later than April 1,
2009. Subsequent recommendations shall be submitted no later than January 15 each year.
The council shall present its recommendations to the senate and house of representatives
committees with jurisdiction over the environment and natural resources budget by
February 15 in odd-numbered years, and within the first four weeks of the legislative
session in even-numbered years. The council's budget recommendations to the legislature
shall be separate from the Department of Natural Resource's budget recommendations.
    (b) To encourage and support local conservation efforts, the council shall establish a
conservation partners program. Local, regional, state, or national organizations may apply
for matching grants for restoration, protection, and enhancement of wetlands, prairies,
forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation,
encouragement of forest consolidation, and expansion of restored native prairie.
    (c) The council may work with the Clean Water Council to identify projects that
are consistent with both the purpose of the outdoor heritage fund and the purpose of
the clean water fund.
    (d) The council may make recommendations to the Legislative-Citizen Commission
on Minnesota Resources on scientific research that will assist in restoring, protecting, and
enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing
forest fragmentation, encouraging forest consolidation, and expanding restored native
prairie.
    (e) Recommendations of the council, including approval of recommendations for the
outdoor heritage fund, require an affirmative vote of at least nine members of the council.
(f) The council may work with the Clean Water Council, the Legislative-Citizen
Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and
water conservation districts, and experts from Minnesota State Colleges and Universities
and the University of Minnesota in developing the council's recommendations.
(g) The council shall develop and implement a process that ensures that citizens
and potential recipients of funds are included throughout the process, including the
development and finalization of the council's recommendations. The process must include
a fair, equitable, and thorough process for reviewing requests for funding and a clear and
easily understood process for ranking projects.
(h) The council shall use the regions of the state based upon the ecological
regions and subregions developed by the Department of Natural Resources and establish
objectives for each region and subregion to achieve the purposes of the fund outlined
in the state constitution.
(i) The council shall develop and submit to the Legislative Coordinating Commission
plans for the first ten years of funding, and a framework for 25 years of funding, consistent
with statutory and constitutional requirements. The council may use existing plans from
other legislative, state, and federal sources, as applicable.

    Sec. 5. Minnesota Statutes 2008, section 97A.056, subdivision 5, is amended to read:
    Subd. 5. Open meetings. (a) Meetings of the council and other groups the council
may establish are subject to chapter 13D. Except where prohibited by law, the council
shall establish additional processes to broaden public involvement in all aspects of its
deliberations, including recording meetings, video conferencing, and publishing minutes.
For the purposes of this subdivision, a meeting occurs when a quorum is present and the
members receive information or take action on any matter relating to the duties of the
council. The quorum requirement for the council shall be seven members.
    (b) Travel to and from scheduled and publicly noticed site visits by council members
for the purposes of receiving information is not a violation of paragraph (a). Any decision
or agreement to make a decision during the travel is a violation of paragraph (a).
(c) For legislative members of the council, enforcement of this subdivision is
governed by section 3.055, subdivision 2. For nonlegislative members of the council,
enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2.

    Sec. 6. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision
to read:
    Subd. 8. Revenues. When a parcel of land that was previously purchased with
outdoor heritage funds is transferred to the state, the owner of the land shall disclose to the
council and commissioner of natural resources:
(1) all revenues generated from activities on the land from the time the land was
purchased with outdoor heritage funds until the land was transferred to the state;
(2) all holding costs associated with managing the land between the time of purchase
with outdoor heritage funds and the time the land was transferred to the state; and
(3) the total net revenues as determined by subtracting the costs described in clause
(2) from the revenues described in clause (1).

    Sec. 7. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision
to read:
    Subd. 9. Lands in public domain. Money appropriated from the outdoor heritage
fund shall not be used to purchase any land in fee title or a permanent conservation
easement if the land in question is fully or partially owned by the state of Minnesota
or a political subdivision of the state, unless: (1) the purchase creates additional direct
benefit to protect, restore, or enhance the state's wetlands, prairies, forests, or habitat
for fish, game, and wildlife; and (2) the purchase is approved by an affirmative vote of
at least nine members of the council. At least 15 business days prior to a decision under
this subdivision, the council shall submit the planned decision item to the Legislative
Coordinating Commission. The planned decision item takes effect 15 business days
after it is submitted by the council.
EFFECTIVE DATE.This section is effective July 1, 2010, and applies only to
projects proposed after that date.

    Sec. 8. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision
to read:
    Subd. 10. Restoration evaluations. Beginning July 1, 2011, the commissioner of
natural resources and the Board of Water and Soil Resources shall convene a technical
evaluation panel comprised of five members, including one technical representative
from the Board of Water and Soil Resources, one technical representative from the
Department of Natural Resources, one technical expert from the University of Minnesota
or the Minnesota State Colleges and Universities, and two representatives with expertise
in the project being evaluated. The board and the commissioner may add a technical
representative from a unit of federal or local government. The members of the technical
evaluation panel may not be associated with the restoration, may vary depending upon
the projects being reviewed, and shall avoid any potential conflicts of interest. Each year,
the board and the commissioner shall assign a coordinator to identify a sample of up to
ten habitat restoration projects completed with outdoor heritage funding. The coordinator
shall secure the restoration plans for the projects specified and direct the technical
evaluation panel to evaluate the restorations relative to the law, current science, and the
stated goals and standards in the restoration plan and, when applicable, to the Board of
Water and Soil Resources' native vegetation establishment and enhancement guidelines.
The coordinator shall summarize the findings of the panel and provide a report to the chair
of the Lessard-Sams Outdoor Heritage Council and the chairs of the respective house of
representatives and senate policy and finance committees with jurisdiction over natural
resources and spending from the outdoor heritage fund. The report shall determine if
the restorations are meeting planned goals, any problems with the implementation of
restorations, and, if necessary, recommendations on improving restorations. The report
shall be focused on improving future restorations. Up to one-tenth of one percent of
forecasted receipts from the outdoor heritage fund may be used for restoration evaluations
under this section.

    Sec. 9. Minnesota Statutes 2009 Supplement, section 114D.50, is amended by adding a
subdivision to read:
    Subd. 6. Restoration evaluations. Beginning July 1, 2011, the Board of Water and
Soil Resources shall convene a technical evaluation panel comprised of five members,
including one technical representative from the Board of Water and Soil Resources, one
technical representative from the Department of Natural Resources, one technical expert
from the University of Minnesota or the Minnesota State Colleges and Universities, and
two representatives with expertise related to the project being evaluated. The board may
add a technical representative from a unit of federal or local government. The members
of the technical evaluation panel may not be associated with the restoration, may vary
depending upon the projects being reviewed, and shall avoid any potential conflicts of
interest. Each year, the board shall assign a coordinator to identify a sample of up to ten
habitat restoration projects completed with clean water funding. The coordinator shall
secure the restoration plans for the projects specified and direct the technical evaluation
panel to evaluate the restorations relative to the law, current science, and the stated
goals and standards in the restoration plan and, when applicable, to the Board of Water
and Soil Resources' native vegetation establishment and enhancement guidelines. The
coordinator shall summarize the findings of the panel and provide a report to the chairs
of the respective house of representatives and senate policy and finance committees
with jurisdiction over natural resources and spending from the clean water fund. The
report shall determine if the restorations are meeting planned goals, any problems with
the implementation of restorations, and, if necessary, recommendations on improving
restorations. The report shall be focused on improving future restorations. Up to one-tenth
of one percent of forecasted receipts from the clean water fund may be used for restoration
evaluations under this section.

    Sec. 10. LAND MANAGEMENT RECOMMENDATIONS.
The commissioner of management and budget, in consultation with the
commissioner of natural resources and the Board of Water and Soil Resources, shall
prepare recommendations to the legislature on methods to accomplish the reasonable
management, care, restoration, and protection of land acquired in fee title or easement.
The commissioner of management and budget shall submit a report to the chairs of the
house of representatives and senate committees and divisions with jurisdiction over
environment and natural resources finance and cultural and outdoor resources finance by
January 15, 2011.

    Sec. 11. REPEALER.
Minnesota Statutes 2009 Supplement, sections 3.3006; and 84.02, subdivisions 4a,
6a, and 6b, are repealed.

ARTICLE 2
CLEAN WATER FUND

    Section 1. Minnesota Statutes 2008, section 473.1565, subdivision 2, is amended to
read:
    Subd. 2. Advisory committee. (a) A Metropolitan Area Water Supply Advisory
Committee is established to assist the council in its planning activities in subdivision 1.
The advisory committee has the following membership:
    (1) the commissioner of agriculture or the commissioner's designee;
    (2) the commissioner of health or the commissioner's designee;
    (3) the commissioner of natural resources or the commissioner's designee;
    (4) the commissioner of the Pollution Control Agency or the commissioner's
designee;
    (5) two officials of counties that are located in the metropolitan area, appointed by
the governor;
    (6) five officials of noncounty local governmental units that are located in the
metropolitan area, appointed by the governor; and
    (7) the chair of the Metropolitan Council or the chair's designee, who is chair of the
advisory committee; and
(8) one official each from the counties of Chisago, Isanti, Sherburne, and Wright,
appointed by the governor.
    A local government unit in each of the seven counties in the metropolitan area
and Chisago, Isanti, Sherburne, and Wright Counties must be represented in the seven
11 appointments made under clauses (5), and (6), and (8).
    (b) Members of the advisory committee appointed by the governor serve at the
pleasure of the governor. Members of the advisory committee serve without compensation
but may be reimbursed for their reasonable expenses as determined by the Metropolitan
Council. The advisory committee expires December 31, 2010 2012.
    (c) The council must consider the work and recommendations of the advisory
committee when the council is preparing its regional development framework.

    Sec. 2. Laws 2009, chapter 172, article 2, section 4, is amended to read:


Sec. 4. POLLUTION CONTROL AGENCY
$
24,076,000
$
27,285,000
27,630,000
(a) $9,000,000 the first year and $9,000,000
the second year are to develop total
maximum daily load (TMDL) studies and
TMDL implementation plans for waters
listed on the United States Environmental
Protection Agency approved impaired
waters list in accordance with Minnesota
Statutes, chapter 114D. The agency shall
complete an average of ten percent of the
TMDLs each year over the biennium. Of
this amount, $348,000 the first year is to
retest the comprehensive assessment of the
biological conditions of the lower Minnesota
River and its tributaries within the Lower
Minnesota River Major Watershed, as
previously assessed from 1976 to 1992 under
the Minnesota River Assessment Project
(MRAP). The assessment must include the
same fish species sampling at the same 116
locations and the same macroinvertebrate
sampling at the same 41 locations as the
MRAP assessment. The assessment must:
(1) include an analysis of the findings; and
(2) identify factors that limit aquatic life in
the Minnesota River.
Of this amount, $250,000 the first year is
for a pilot project for the development of
total maximum daily load (TMDL) studies
conducted on a watershed basis within
the Buffalo River watershed in order to
protect, enhance, and restore water quality
in lakes, rivers, and streams. The pilot
project shall include all necessary field
work to develop TMDL studies for all
impaired subwatersheds within the Buffalo
River watershed and provide information
necessary to complete reports for most of the
remaining watersheds, including analysis of
water quality data, identification of sources
of water quality degradation and stressors,
load allocation development, development
of reports that provide protection plans
for subwatersheds that meet water quality
standards, and development of reports that
provide information necessary to complete
TMDL studies for subwatersheds that do not
meet water quality standards, but are not
listed as impaired.
(b) $500,000 the first year is for development
of an enhanced TMDL database to manage
and track progress. Of this amount, $63,000
the first year is to promulgate rules. By
November 1, 2010, the commissioner shall
submit a report to the chairs of the house of
representatives and senate committees with
jurisdiction over environment and natural
resources finance on the outcomes achieved
with this appropriation.
(c) $1,500,000 the first year and $3,169,000
the second year are for grants under
Minnesota Statutes, section 116.195, to
political subdivisions for up to 50 percent
of the costs to predesign, design, and
implement capital projects that use treated
municipal wastewater instead of groundwater
from drinking water aquifers, in order to
demonstrate the beneficial use of wastewater,
including the conservation and protection of
water resources. Of this amount, $1,000,000
the first year is for grants to ethanol plants
that are within one and one-half miles of a
city for improvements that reuse greater than
300,000 gallons of wastewater per day.
(d) $1,125,000 the first year and $1,125,000
the second year are for groundwater
assessment and drinking water protection to
include:
(1) the installation and sampling of at least
30 new monitoring wells;
(2) the analysis of samples from at least 40
shallow monitoring wells each year for the
presence of endocrine disrupting compounds;
and
(3) the completion of at least four to
five groundwater models for TMDL and
watershed plans.
(e) $2,500,000 the first year is for the clean
water partnership program. Priority shall be
given to projects preventing impairments and
degradation of lakes, rivers, streams, and
groundwater in accordance with Minnesota
Statutes, section 114D.20, subdivision 2,
clause (4). Any balance remaining in the first
year does not cancel and is available for the
second year.
(f) $896,000 the first year is to establish
a network of water monitoring sites, to
include at least 20 additional sites, in public
waters adjacent to wastewater treatment
facilities across the state to assess levels of
endocrine-disrupting compounds, antibiotic
compounds, and pharmaceuticals as required
in this article. The data must be placed on
the agency's Web site.
(g) $155,000 the first year is to provide
notification of the potential for coal tar
contamination, establish a storm water
pond inventory schedule, and develop best
management practices for treating and
cleaning up contaminated sediments as
required in this article. $345,000 $490,000
the second year is to develop a model
ordinance for the restricted use of undiluted
coal tar sealants and to provide grants to local
units of government for up to 50 percent of
the costs to implement best management
practices to treat or clean up contaminated
sediments in storm water ponds and other
waters as defined under this article. Local
governments must have adopted an ordinance
for the restricted use of undiluted coal tar
sealants in order to be eligible for a grant,
unless a statewide restriction has been
implemented. A grant awarded under this
paragraph must not exceed $100,000. Up to
$145,000 of the appropriation in the second
year may be used to complete work required
under section 28, paragraph (c).
(h) $350,000 the first year and $400,000
$600,000 the second year are for a restoration
project in the lower St. Louis River and
Duluth harbor in order to improve water
quality. This appropriation must be matched
by nonstate money at a rate of at least $2 for
every $1 of state money.
(i) $150,000 the first year and $196,000 the
second year are for grants to the Red River
Watershed Management Board to enhance
and expand existing river watch activities in
the Red River of the North. The Red River
Watershed Management Board shall provide
a report that includes formal evaluation
results from the river watch program to the
commissioners of education and the Pollution
Control Agency and to the legislative natural
resources finance and policy committees
and K-12 finance and policy committees by
February 15, 2011.
(j) $200,000 the first year and $300,000 the
second year are for coordination with the
state of Wisconsin and the National Park
Service on comprehensive water monitoring
and phosphorus reduction activities in the
Lake St. Croix portion of the St. Croix
River. The Pollution Control Agency
shall work with the St. Croix Basin Water
Resources Planning Team and the St. Croix
River Association in implementing the
water monitoring and phosphorus reduction
activities. This appropriation is available
to the extent matched by nonstate sources.
Money not matched by November 15, 2010,
cancels for this purpose and is available for
the purposes of paragraph (a).
(k) $7,500,000 the first year and $7,500,000
the second year are for completion of 20
percent of the needed statewide assessments
of surface water quality and trends. Of this
amount, $175,000 the first year and $200,000
the second year are for monitoring and
analyzing endocrine disruptors in surface
waters.
(l) $100,000 the first year and $150,000
the second year are for civic engagement
in TMDL development. The agency shall
develop a plan for expenditures under
this paragraph. The agency shall give
consideration to civic engagement proposals
from basin or sub-basin organizations,
including the Mississippi Headwaters Board,
the Minnesota River Joint Powers Board,
Area II Minnesota River Basin Projects,
and the Red River Basin Commission.
By November 15, 2009, the plan shall be
submitted to the house and senate chairs
and ranking minority members of the
environmental finance divisions.
(m) $5,000,000 the second year is for
groundwater protection or prevention of
groundwater degradation activities. By
January 15, 2010, the commissioner, in
consultation with the commissioner of
natural resources, the Board of Water and
Soil Resources, and other agencies, shall
submit a report to the chairs of the house of
representatives and senate committees with
jurisdiction over the clean water fund on the
intended use of these funds. The legislature
must approve expenditure of these funds by
law.
(n) $100,000 the first year and $100,000 the
second year are for grants to the Star Lake
Board established under Minnesota Statutes,
section 103B.702. The appropriation is a
pilot program to focus on engaging citizen
participation and fostering local partnerships
by increasing citizen involvement in water
quality enhancement by designating star
lakes and rivers. The board shall include
information on the results of this pilot
program in its next biennial report under
Minnesota Statutes, section 103B.702. The
second year grants are available only if
the Board of Water and Soil Resources
determines that the money granted in the first
year furthered the water quality goals in the
star lakes program in Minnesota Statutes,
section 103B.701. * (The preceding
paragraph beginning "(n) $100,000 the
first year" was indicated as vetoed by the
governor.)
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered on or
before June 30, 2011, as grants or contracts in
this section are available until June 30, 2013.

    Sec. 3. CLEAN WATER FUND; 2009 APPROPRIATION ADJUSTMENTS.
The appropriations in fiscal years 2011 and 2012 to the Department of Natural
Resources for high-resolution digital elevation data in Laws 2009, chapter 172, article 2,
section 5, paragraph (d), are available until June 30, 2012.

    Sec. 4. CLEAN WATER FUND APPROPRIATIONS.
    Subdivision 1. Pollution Control Agency. $600,000 in fiscal year 2011 is
appropriated from the clean water fund to the commissioner of the Pollution Control
Agency to continue rulemaking to establish water quality standards for total nitrogen and
nitrate nitrogen. This is a onetime appropriation.
    Subd. 2. Department of Natural Resources. The $5,000,000 appropriated
in Laws 2009, chapter 172, article 2, section 4, paragraph (m), for activities relating
to groundwater protection or prevention of groundwater degradation is canceled and
$4,000,000 is appropriated in fiscal year 2011 to the commissioner of natural resources for
the following purposes:
(1) establish a groundwater monitoring network in the 11-county metropolitan area
that monitors non-stressed systems to provide information on aquifer characteristics and
natural water level trends; and
(2) develop an automated data system to capture groundwater level and water use
data to enhance the evaluation of water resource changes in aquifer systems that are
stressed by pumping of existing wells. This is a onetime appropriation and is available
until spent. The base funding for this program in fiscal year 2012 is $1,000,000 and $0
in fiscal year 2013.

    Sec. 5. APPROPRIATION; WATER SUPPLY PLANNING ACTIVITIES.
$400,000 is appropriated in fiscal year 2011 from the clean water fund, pursuant to
Minnesota Statutes, section 114D.50, to the Metropolitan Council to fund Metropolitan
Council water supply planning activities under section 473.1565, for projects that
include, but are not limited to, protection of the Seminary Fen and Valley Branch Trout
Stream; lessening groundwater vulnerability by mapping glacial aquifers; creation of a
comprehensive map of known groundwater contaminant plumes; and the design of plans
that can be used by communities for reusing storm water. By January 15, 2011, the council
shall report to the chairs and ranking minority members of the legislative committees
and divisions that make recommendations for appropriations from the clean water fund
on the outcomes of the council's water supply planning activities. This appropriation
is onetime and available until expended.

    Sec. 6. APPROPRIATIONS; BOARD OF WATER AND SOIL RESOURCES.
(a) $100,000 in fiscal year 2011 is appropriated from the clean water fund to the
Board of Water and Soil Resources for the purpose of establishing a micro-grants pilot
program to engage citizen volunteers and to match private sector resources to complete
projects with long-term water quality restoration or protection benefits for Minnesota lakes
and rivers. * (The preceding paragraph (a) was indicated as vetoed by the governor.)
(b) $400,000 in fiscal year 2011 is appropriated from the clean water fund to the
Board of Water and Soil Resources to purchase and restore permanent conservation
easements on riparian buffers of up to 120 feet adjacent to public waters, excluding
wetlands, to keep water on the land in order to decrease sediment, pollutant, and nutrient
transport, reduce hydrologic impacts to surface waters, and increase infiltration for
groundwater recharge. The riparian buffers must be at least 50 feet unless there is a
natural impediment, a road, or other impediment beyond the control of the landowner.
This appropriation may be used for restoration of riparian buffers protected by easements
purchased with this appropriation and for stream bank restorations when the riparian
buffers have been restored. Up to five percent may be used for administration of this
program and up to five percent may be used for technical design, construction, and project
oversight.
(c) $400,000 in fiscal year 2011 is appropriated from the clean water fund to the
Board of Water and Soil Resources for grants to watershed districts and watershed
management organizations for: (1) structural or vegetative management practices that
reduce storm water runoff from developed or disturbed lands to reduce the movement of
sediment, nutrients, and pollutants or to leverage federal funds for restoration, protection,
or enhancement of water quality in lakes, rivers, and streams and to protect groundwater
and drinking water; and (2) the installation of proven and effective water retention
practices including, but not limited to, rain gardens and other vegetated infiltration basins
and sediment control basins in order to keep water on the land. The projects must be
of long-lasting public benefit, include a local match, and be consistent with TMDL
implementation plans or local water management plans. Watershed district and watershed
management organization staff and administration may be used for the local match.
Priority may be given to school projects that can be used to demonstrate water retention
practices. Up to five percent may be used for administering the grants and up to five
percent may be used for technical design, construction, and project oversight.
(d) $300,000 in fiscal year 2011 is appropriated from the clean water fund to the
Board of Water and Soil Resources for permanent conservation easements on wellhead
protection areas under Minnesota Statutes, section 103F.515, subdivision 2, paragraph
(d). Priority must be placed on land that is located where the vulnerability of the drinking
water supply management area, as defined under Minnesota Rules, part 4720.5100,
subpart 13, is designated as high or very high by the commissioner of health. Up to five
percent may be used for administration of this program and up to five percent may be used
for technical design, construction, and project oversight.
(e) The appropriations in fiscal year 2011 to the Board of Water and Soil Resources in
Laws 2009, chapter 172, article 2, section 6, are available until June 30, 2012, and, unless
otherwise specified, may utilize up to five percent for administration of grant and easement
programs and up to five percent for technical design, construction, and project oversight.

ARTICLE 3
GENERAL PROVISIONS

    Section 1. Minnesota Statutes 2008, section 3.9741, is amended by adding a
subdivision to read:
    Subd. 3. Legacy funds. The outdoor heritage fund, the clean water fund, the parks
and trails fund, and the arts and cultural heritage fund must each reimburse the general
fund, in the manner prescribed in section 16A.127, for costs incurred by the legislative
auditor in examining financial activities relating to each fund.

    Sec. 2. Minnesota Statutes 2009 Supplement, section 85.53, subdivision 2, is amended
to read:
    Subd. 2. Expenditures; accountability. (a) A project or program receiving funding
from the parks and trails fund must meet or exceed the constitutional requirement to
support parks and trails of regional or statewide significance. A project or program
receiving funding from the parks and trails fund must include measurable outcomes, as
defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the
results. A project or program must be consistent with current science and incorporate
state-of-the-art technology, except when the project or program is a portrayal or restoration
of historical significance.
(b) Money from the parks and trails fund shall be expended to balance the benefits
across all regions and residents of the state.
(c) All information for funded projects, including the proposed measurable
outcomes, must be made available on the Web site required under section 3.303,
subdivision 10, as soon as practicable. Information on the measured outcomes and
evaluation must be posted as soon as it becomes available.
(d) Grants funded by the parks and trails fund must be implemented according to
section 16B.98 and must account for all expenditures. Proposals must specify a process
for any regranting envisioned. Priority for grant proposals must be given to proposals
involving grants that will be competitively awarded.
(e) A recipient of money from the parks and trails fund must display a sign on lands
and capital improvements purchased, restored, or protected with money from the parks
and trails fund that includes the logo developed by the commissioner of natural resources
to identify it as a project funded with money from the vote of the people of Minnesota on
November 4, 2008.
(f) Money from the parks and trails fund may only be spent on projects located
in Minnesota.

    Sec. 3. Minnesota Statutes 2009 Supplement, section 129D.17, subdivision 2, is
amended to read:
    Subd. 2. Expenditures; accountability. (a) Funding from the arts and cultural
heritage fund may be spent only for arts, arts education, and arts access, and to preserve
Minnesota's history and cultural heritage. A project or program receiving funding from
the arts and cultural heritage fund must include measurable outcomes, and a plan for
measuring and evaluating the results. A project or program must be consistent with
current scholarship, or best practices, when appropriate and incorporate state-of-the-art
technology when appropriate.
(b) Funding from the arts and cultural heritage fund may be granted for an entire
project or for part of a project so long as the recipient provides a description and cost for
the entire project and can demonstrate that it has adequate resources to ensure that the
entire project will be completed.
(c) Money from the arts and cultural heritage fund shall be expended for benefits
across all regions and residents of the state.
(d) All information for funded projects, including the proposed measurable
outcomes, must be made available on the Legislative Coordinating Commission Web
site, as soon as practicable. Information on the measured outcomes and evaluation must
be posted as soon as it becomes available.
(e) Grants funded by the arts and cultural heritage fund must be implemented
according to section 16B.98 and must account for all expenditures of funds. Priority for
grant proposals must be given to proposals involving grants that will be competitively
awarded.
(f) A recipient of money from the arts and cultural heritage fund must display a sign
on capital projects during construction and an acknowledgment in a printed program or
other material funded with money from the arts and cultural heritage fund that identifies it
as a project funded with money from the vote of the people of Minnesota on November
4, 2008.
(g) All money from the arts and cultural heritage fund must be for projects located
in Minnesota.

    Sec. 4. Laws 2009, chapter 172, article 5, section 8, is amended to read:
    Sec. 8. LEGISLATIVE COMMITTEE GUIDE.
A legislative committee guide shall be recommended may be developed by the
house of representatives committee with jurisdiction over cultural and outdoor resources
expenditures stating principles for the use and expected outcomes of all funds from
dedicated sales taxes pursuant to the Minnesota Constitution, article XI, section 15. The
guide shall include principles for managing future state obligations, including payment
in lieu of taxes and land management and monitoring necessary for lands acquired in
fee or easement. This guide shall be recommended jointly by the Cultural and Outdoor
Resources Division of the house of representatives, the appropriate senate committees
as designated by the majority leader of the senate, and the Lessard Outdoor Heritage
Council. The recommendations must be presented to the legislature by January 15, 2010,
and acted on by the legislature.
The legislative guide required by this section shall be for the years 2010 to 2015
and shall include the following provisions:
(1) principles by which to guide future expenditures for each fund;
(2) desired outcomes for the expenditures;
(3) a general statement applicable to later years for these funds; and
(4) consideration of financial methods such as revolving loan funds that may be used
in future appropriations.

    Sec. 5. Laws 2009, chapter 172, article 5, section 10, is amended to read:
    Sec. 10. LOGO.
(a) By September 1, 2010, the Minnesota Board of the Arts, in consultation with
the Department of Natural Resources, shall sponsor a contest for selecting the design of a
logo to use on signage for projects receiving money from the outdoor heritage fund,
clean water fund, parks and trails fund, and the arts and cultural heritage fund. If, by
September 15, 2010, the Minnesota Board of the Arts has not selected a logo design, the
Department of Natural Resources shall assume the task of sponsoring the logo contest and
design selection solely.
(b) A recipient of funds from the outdoor heritage fund, parks and trails fund, clean
water fund, or arts and cultural heritage fund shall display, where practicable, a sign with
the logo developed under this section on construction projects and at access points to any
land or water resources acquired in fee or an interest in less than fee title, or that were
restored, protected, or enhanced, and incorporate the logo, where practicable, into printed
and other materials funded with money from one or more of the funds.

    Sec. 6. FUNDS CARRYOVER.
Unless otherwise provided, the amounts appropriated in Laws 2009, chapter 172,
are available until June 30, 2011. For acquisition of an interest in real property, the
amounts in Laws 2009, chapter 172, are available until June 30, 2012. If a project receives
federal funds, the time period of the appropriation is extended to equal the availability
of federal funding.

    Sec. 7. PARKS.
The Minneapolis Park and Recreation Board may acquire all or part of the entire
property known as the Scherer Brothers Lumber Yard for a metropolitan area regional
park and may allocate any future appropriations to the board from the parks and trails fund
to acquire the property.
EFFECTIVE DATE.This section is effective the day after the Minneapolis
Park Board timely completes compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.

    Sec. 8. USE OF CARRYFORWARD.
The restrictions in Minnesota Statutes, section 16A.281, on the use of money carried
forward from one biennium to another shall not apply to money the legislative auditor
carried forward from the previous biennium for use in fiscal years 2010 and 2011. The
legislative auditor may use the carry forward money for costs related to the conduct of
audits related to funds authorized in the Minnesota Constitution, Article XI, section 15.

    Sec. 9. REPEALER.
Laws 2009, chapter 172, article 5, section 9, is repealed.

ARTICLE 4
ENVIRONMENT AND NATURAL RESOURCES

    Section 1. Minnesota Statutes 2008, section 84.025, subdivision 9, is amended to read:
    Subd. 9. Professional services support account. The commissioner of natural
resources may bill other governmental units, including tribal governments, and the
various programs carried out by the commissioner for the costs of providing them with
professional support services. Except as provided under section 89.421, receipts must be
credited to a special account in the state treasury and are appropriated to the commissioner
to pay the costs for which the billings were made.
    The commissioner of natural resources shall submit to the commissioner of
management and budget before the start of each fiscal year a work plan showing the
estimated work to be done during the coming year, the estimated cost of doing the work,
and the positions and fees that will be necessary. This account is exempted from statewide
and agency indirect cost payments.

    Sec. 2. Minnesota Statutes 2008, section 84.027, subdivision 15, is amended to read:
    Subd. 15. Electronic transactions. (a) The commissioner may receive an
application for, sell, and issue any license, stamp, permit, pass, sticker, duplicate gift
card, safety training certification, registration, or transfer under the jurisdiction of the
commissioner by electronic means, including by telephone. Notwithstanding section
97A.472, electronic and telephone transactions may be made outside of the state. The
commissioner may:
    (1) provide for the electronic transfer of funds generated by electronic transactions,
including by telephone;
    (2) assign an identification number to an applicant who purchases a hunting or
fishing license or recreational vehicle registration by electronic means, to serve as
temporary authorization to engage in the activity requiring a license or registration until
the license or registration is received or expires;
    (3) charge and permit agents to charge a fee of individuals who make electronic
transactions and transactions by telephone or Internet, including issuing fees and an
additional transaction fee not to exceed $3.50;
    (4) charge and permit agents to charge a convenience fee not to exceed three percent
of the cost of the license to individuals who use electronic bank cards for payment. An
electronic licensing system agent charging a fee of individuals making an electronic
bank card transaction in person must post a sign informing individuals of the fee. The
sign must be near the point of payment, clearly visible, include the amount of the fee, and
state: "License agents are allowed by state law to charge a fee not to exceed three percent
of the cost of state licenses to persons who use electronic bank cards for payment. The
fee is not required by state law.";
    (5) establish, by written order, an electronic licensing system commission to be
paid by revenues generated from all sales made through the electronic licensing system.
The commissioner shall establish the commission in a manner that neither significantly
overrecovers nor underrecovers costs involved in providing the electronic licensing
system; and
    (6) adopt rules to administer the provisions of this subdivision.
    (b) The fees established under paragraph (a), clauses (3) and (4), and the commission
established under paragraph (a), clause (5), are not subject to the rulemaking procedures
of chapter 14 and section 14.386 does not apply.
    (c) Money received from fees and commissions collected under this subdivision,
including interest earned, is annually appropriated from the game and fish fund and the
natural resources fund to the commissioner for the cost of electronic licensing.

    Sec. 3. Minnesota Statutes 2008, section 84.0856, is amended to read:
84.0856 FLEET MANAGEMENT ACCOUNT.
The commissioner of natural resources may bill organizational units within
the Department of Natural Resources and other governmental units, including tribal
governments, for the costs of providing them with equipment. Costs billed may include
acquisition, licensing, insurance, maintenance, repair, and other direct costs as determined
by the commissioner. Receipts and interest earned on the receipts shall be credited to a
special account in the state treasury and are appropriated to the commissioner to pay the
costs for which the billings were made.

    Sec. 4. Minnesota Statutes 2008, section 84.0857, is amended to read:
84.0857 FACILITIES MANAGEMENT ACCOUNT.
    (a) The commissioner of natural resources may bill organizational units within
the Department of Natural Resources and other governmental units, including tribal
governments, for the costs of providing them with building and infrastructure facilities.
Costs billed may include modifications and adaptations to allow for appropriate building
occupancy, building code compliance, insurance, utility services, maintenance, repair, and
other direct costs as determined by the commissioner. Receipts shall be credited to a
special account in the state treasury and are appropriated to the commissioner to pay the
costs for which the billings were made.
    (b) Money deposited in the special account from the proceeds of a sale under section
94.16, subdivision 3, paragraph (b), is appropriated to the commissioner to acquire
facilities or renovate existing buildings for administrative use or to acquire land for,
design, and construct administrative buildings for the Department of Natural Resources.

    Sec. 5. Minnesota Statutes 2008, section 84.415, is amended by adding a subdivision
to read:
    Subd. 3a. Joint applications for residential use. An application for a utility
license may cover more than one type of utility if the utility lines are being installed for
residential use only. Separate applications submitted by utilities for the same crossing
shall be joined together and processed as one application, provided that the applications
are submitted within one year of each other and the utility lines are for residential use only.
The application fees for a joint application or separate applications subsequently joined
together shall be as if only one application was submitted.

    Sec. 6. Minnesota Statutes 2009 Supplement, section 84.415, subdivision 6, is
amended to read:
    Subd. 6. Supplemental application fee and monitoring fee. (a) In addition to the
application fee and utility crossing fees specified in Minnesota Rules, the commissioner of
natural resources shall assess the applicant for a utility license the following fees:
(1) a supplemental application fee of $1,500 $1,750 for a public water crossing
license and a supplemental application fee of $4,500 $3,000 for a public lands crossing
license, to cover reasonable costs for reviewing the application and preparing the license;
and
(2) a monitoring fee to cover the projected reasonable costs for monitoring the
construction of the utility line and preparing special terms and conditions of the license
to ensure proper construction. The commissioner must give the applicant an estimate of
the monitoring fee before the applicant submits the fee.
(b) The applicant shall pay fees under this subdivision to the commissioner of
natural resources. The commissioner shall not issue the license until the applicant has
paid all fees in full.
(c) Upon completion of construction of the improvement for which the license
or permit was issued, the commissioner shall refund the unobligated balance from the
monitoring fee revenue. The commissioner shall not return the application fees, even
if the application is withdrawn or denied.
(d) If the fees collected under paragraph (a), clause (1), are not sufficient to cover
the costs of reviewing the applications and preparing the licenses, the commissioner shall
improve efficiencies and otherwise reduce department costs and activities to ensure the
revenues raised under paragraph (a), clause (1), are sufficient, and that no other funds are
necessary to carry out the requirements.

    Sec. 7. Minnesota Statutes 2008, section 84.777, subdivision 2, is amended to read:
    Subd. 2. Off-highway vehicle seasons seasonal restrictions. (a) The commissioner
shall prescribe seasons for off-highway vehicle use on state forest lands. Except for
designated forest roads, a person must not operate an off-highway vehicle on state forest
lands: (1) outside of the seasons prescribed under this paragraph; or (2) during the firearms
deer hunting season in areas of the state where deer may be taken by rifle. This paragraph
does not apply to a person in possession of a valid deer hunting license operating an
off-highway vehicle before or after legal shooting hours or from 11:00 a.m. to 2:00 p.m.
    (b) The commissioner may designate and post winter trails on state forest lands
for use by off-highway vehicles.
    (c) For the purposes of this subdivision, "state forest lands" means forest lands under
the authority of the commissioner as defined in section 89.001, subdivision 13, and lands
managed by the commissioner under section 282.011.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2008, section 84.788, subdivision 2, is amended to read:
    Subd. 2. Exemptions. Registration is not required for off-highway motorcycles:
(1) owned and used by the United States, an Indian tribal government, the state,
another state, or a political subdivision;
(2) registered in another state or country that have not been within this state for
more than 30 consecutive days; or
(3) registered under chapter 168, when operated on forest roads to gain access to a
state forest campground.

    Sec. 9. Minnesota Statutes 2009 Supplement, section 84.793, subdivision 1, is
amended to read:
    Subdivision 1. Prohibitions on youthful operators. (a) After January 1, 1995, A
person less than 16 years of age operating an off-highway motorcycle on public lands
or waters must possess a valid off-highway motorcycle safety certificate issued by the
commissioner.
(b) Except for operation on public road rights-of-way that is permitted under section
84.795, subdivision 1, a driver's license issued by the state or another state is required to
operate an off-highway motorcycle along or on a public road right-of-way.
(c) A person under 12 years of age may not:
(1) make a direct crossing of a public road right-of-way;
(2) operate an off-highway motorcycle on a public road right-of-way in the state; or
(3) operate an off-highway motorcycle on public lands or waters unless accompanied
by a person 18 years of age or older or participating in an event for which the
commissioner has issued a special use permit.
(d) Except for public road rights-of-way of interstate highways, a person less than 16
years of age may make a direct crossing of a public road right-of-way of a trunk, county
state-aid, or county highway only if that person is accompanied by a person 18 years of
age or older who holds a valid driver's license.
(e) A person less than 16 years of age may operate an off-highway motorcycle on
public road rights-of-way in accordance with section 84.795, subdivision 1, paragraph
(a), only if that person is accompanied by a person 18 years of age or older who holds a
valid driver's license.
(f) Notwithstanding paragraph (a), a nonresident less than 16 years of age may
operate an off-highway motorcycle on public lands or waters if the nonresident youth has
in possession evidence of completing an off-road safety course offered by the Motorcycle
Safety Foundation or another state as provided in section 84.791, subdivision 4.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. Minnesota Statutes 2008, section 84.798, subdivision 2, is amended to read:
    Subd. 2. Exemptions. Registration is not required for an off-road vehicle that is:
(1) owned and used by the United States, an Indian tribal government, the state,
another state, or a political subdivision; or
(2) registered in another state or country and has not been in this state for more
than 30 consecutive days.

    Sec. 11. Minnesota Statutes 2008, section 84.82, subdivision 3, is amended to read:
    Subd. 3. Fees for registration. (a) The fee for registration of each snowmobile,
other than those used for an agricultural purpose, as defined in section 84.92, subdivision
1c
, or those registered by a dealer or manufacturer pursuant to clause (b) or (c) shall be as
follows: $45 for three years and $4 for a duplicate or transfer.
(b) The total registration fee for all snowmobiles owned by a dealer and operated for
demonstration or testing purposes shall be $50 per year.
(c) The total registration fee for all snowmobiles owned by a manufacturer and
operated for research, testing, experimentation, or demonstration purposes shall be $150
per year. Dealer and manufacturer registrations are not transferable.
(d) The onetime fee for registration of an exempt snowmobile under subdivision
6a is $6.

    Sec. 12. Minnesota Statutes 2008, section 84.82, subdivision 6, is amended to read:
    Subd. 6. Exemptions. Registration is not required under this section for:
    (1) a snowmobile owned and used by the United States, an Indian tribal government,
another state, or a political subdivision thereof;
    (2) a snowmobile registered in a country other than the United States temporarily
used within this state;
    (3) a snowmobile that is covered by a valid license of another state and has not been
within this state for more than 30 consecutive days;
    (4) a snowmobile used exclusively in organized track racing events;
    (5) a snowmobile in transit by a manufacturer, distributor, or dealer;
    (6) a snowmobile at least 15 years old in transit by an individual for use only on
land owned or leased by the individual; or
    (7) a snowmobile while being used to groom a state or grant-in-aid trail.

    Sec. 13. Minnesota Statutes 2008, section 84.82, is amended by adding a subdivision
to read:
    Subd. 6a. Exemption; collector unlimited snowmobile use. Snowmobiles may be
issued an exempt registration if the machine is at least 25 years old. Exempt registration is
valid from the date of issuance until ownership of the snowmobile is transferred. Exempt
registrations are not transferable.

    Sec. 14. Minnesota Statutes 2008, section 84.8205, subdivision 1, is amended to read:
    Subdivision 1. Sticker required; fee. (a) Except as provided in paragraph (b), a
person may not operate a snowmobile on a state or grant-in-aid snowmobile trail unless a
snowmobile state trail sticker is affixed to the snowmobile. The commissioner of natural
resources shall issue a sticker upon application and payment of a $15 fee. The fee for a
three-year snowmobile state trail sticker that is purchased at the time of snowmobile
registration is $30. In addition to other penalties prescribed by law, a person in violation
of this subdivision must purchase an annual state trail sticker for a fee of $30. The sticker
is valid from November 1 through June 30. Fees collected under this section, except for
the issuing fee for licensing agents, shall be deposited in the state treasury and credited
to the snowmobile trails and enforcement account in the natural resources fund and,
except for the electronic licensing system commission established by the commissioner
under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance,
grooming, and easement acquisition.
    (b) A state trail sticker is not required under this section for:
    (1) a snowmobile owned by the state or a political subdivision of the state that is
registered under section 84.82, subdivision 5;
    (2) a snowmobile that is owned and used by the United States, an Indian tribal
government, another state, or a political subdivision thereof that is exempt from
registration under section 84.82, subdivision 6;
    (3) a collector snowmobile that is operated as provided in a special permit issued for
the collector snowmobile under section 84.82, subdivision 7a;
    (4) a person operating a snowmobile only on the portion of a trail that is owned by
the person or the person's spouse, child, or parent; or
    (5) a snowmobile while being used to groom a state or grant-in-aid trail.
    (c) A temporary registration permit issued by a dealer under section 84.82,
subdivision 2, may include a snowmobile state trail sticker if the trail sticker fee is
included with the registration application fee.

    Sec. 15. Minnesota Statutes 2008, section 84.92, subdivision 9, is amended to read:
    Subd. 9. Class 1 all-terrain vehicle. "Class 1 all-terrain vehicle" means an
all-terrain vehicle that has a total dry weight of less than 900 1,000 pounds.

    Sec. 16. Minnesota Statutes 2008, section 84.92, subdivision 10, is amended to read:
    Subd. 10. Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" means an
all-terrain vehicle that has a total dry weight of 900 1,000 to 1,500 1,800 pounds.

    Sec. 17. Minnesota Statutes 2009 Supplement, section 84.922, subdivision 1a, is
amended to read:
    Subd. 1a. Exemptions. All-terrain vehicles exempt from registration are:
    (1) vehicles owned and used by the United States, an Indian tribal government, the
state, another state, or a political subdivision;
    (2) vehicles registered in another state or country that have not been in this state for
more than 30 consecutive days;
(3) vehicles that:
(i) are owned by a resident of another state or country that does not require
registration of all-terrain vehicles;
(ii) have not been in this state for more than 30 consecutive days; and
(iii) are operated on state and grant-in-aid trails by a nonresident possessing a
nonresident all-terrain vehicle state trail pass;
    (4) vehicles used exclusively in organized track racing events; and
    (5) vehicles that are 25 years old or older and were originally produced as a separate
identifiable make by a manufacturer.

    Sec. 18. Minnesota Statutes 2008, section 84.922, is amended by adding a subdivision
to read:
    Subd. 2b. Collector unlimited use; exempt registration. All-terrain vehicles may
be issued an exempt registration if requested and the machine is at least 25 years old.
Exempt registration is valid from the date of issuance until ownership of the all-terrain
vehicle is transferred. Exempt registrations are not transferable.

    Sec. 19. Minnesota Statutes 2008, section 84.922, subdivision 5, is amended to read:
    Subd. 5. Fees for registration. (a) The fee for a three-year registration of
an all-terrain vehicle under this section, other than those registered by a dealer or
manufacturer under paragraph (b) or (c), is:
    (1) for public use, $45;
    (2) for private use, $6; and
    (3) for a duplicate or transfer, $4.
    (b) The total registration fee for all-terrain vehicles owned by a dealer and operated
for demonstration or testing purposes is $50 per year. Dealer registrations are not
transferable.
    (c) The total registration fee for all-terrain vehicles owned by a manufacturer and
operated for research, testing, experimentation, or demonstration purposes is $150 per
year. Manufacturer registrations are not transferable.
    (d) The onetime fee for registration of an all-terrain vehicle under subdivision 2b
is $6.
(e) The fees collected under this subdivision must be credited to the all-terrain
vehicle account.

    Sec. 20. Minnesota Statutes 2008, section 84.925, subdivision 1, is amended to read:
    Subdivision 1. Program established. (a) The commissioner shall establish a
comprehensive all-terrain vehicle environmental and safety education and training
program, including the preparation and dissemination of vehicle information and safety
advice to the public, the training of all-terrain vehicle operators, and the issuance of
all-terrain vehicle safety certificates to vehicle operators over the age of 12 years who
successfully complete the all-terrain vehicle environmental and safety education and
training course.
(b) For the purpose of administering the program and to defray a portion of the
expenses of training and certifying vehicle operators, the commissioner shall collect a fee
of $15 from each person who receives the training. The commissioner shall collect a fee,
to include a $1 issuing fee for licensing agents, for issuing a duplicate all-terrain vehicle
safety certificate. The commissioner shall establish the fee for a duplicate all-terrain
vehicle safety certificate that neither significantly overrecovers nor underrecovers costs,
including overhead costs, involved in providing the service. Fee proceeds, except for the
issuing fee for licensing agents under this subdivision, shall be deposited in the all-terrain
vehicle account in the natural resources fund. In addition to the fee established by the
commissioner, instructors may charge each person the cost of up to the established fee
amount for class material materials and expenses.
(c) The commissioner shall cooperate with private organizations and associations,
private and public corporations, and local governmental units in furtherance of the program
established under this section. School districts may cooperate with the commissioner
and volunteer instructors to provide space for the classroom portion of the training. The
commissioner shall consult with the commissioner of public safety in regard to training
program subject matter and performance testing that leads to the certification of vehicle
operators. By June 30, 2003, the commissioner shall incorporate a riding component in
the safety education and training program.

    Sec. 21. Minnesota Statutes 2008, section 84.9256, subdivision 1, is amended to read:
    Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on
public road rights-of-way that is permitted under section 84.928, a driver's license issued
by the state or another state is required to operate an all-terrain vehicle along or on a
public road right-of-way.
    (b) A person under 12 years of age shall not:
    (1) make a direct crossing of a public road right-of-way;
    (2) operate an all-terrain vehicle on a public road right-of-way in the state; or
    (3) operate an all-terrain vehicle on public lands or waters, except as provided in
paragraph (f).
    (c) Except for public road rights-of-way of interstate highways, a person 12 years
of age but less than 16 years may make a direct crossing of a public road right-of-way
of a trunk, county state-aid, or county highway or operate on public lands and waters or
state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety
certificate issued by the commissioner and is accompanied on another all-terrain vehicle
by a person 18 years of age or older who holds a valid driver's license.
    (d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years
old, but less than 16 years old, must:
    (1) successfully complete the safety education and training program under section
84.925, subdivision 1, including a riding component; and
    (2) be able to properly reach and control the handle bars and reach the foot pegs
while sitting upright on the seat of the all-terrain vehicle.
    (e) A person at least 11 years of age may take the safety education and training
program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
the certificate is not valid until the person reaches age 12.
    (f) A person at least ten years of age but under 12 years of age may operate an
all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if
accompanied by a parent or legal guardian.
    (g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
    (h) A person under the age of 16 may not operate an all-terrain vehicle on public
lands or waters or on state or grant-in-aid trails if the person cannot properly reach and
control the handle bars and reach the foot pegs while sitting upright on the seat of the
all-terrain vehicle.
(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than
16 years old, may make a direct crossing of a public road right-of-way of a trunk, county
state-aid, or county highway or operate an all-terrain vehicle on public lands and waters
or state or grant-in-aid trails if:
(1) the nonresident youth has in possession evidence of completing an all-terrain
safety course offered by the ATV Safety Institute or another state as provided in section
84.925, subdivision 3; and
(2) the nonresident youth is accompanied by a person 18 years of age or older who
holds a valid driver's license.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 22. Minnesota Statutes 2009 Supplement, section 84.9275, subdivision 1, is
amended to read:
    Subdivision 1. Pass required; fee. (a) A nonresident may not operate an all-terrain
vehicle on a state or grant-in-aid all-terrain vehicle trail unless the operator carries a valid
nonresident all-terrain vehicle state trail pass in immediate possession. The pass must
be available for inspection by a peace officer, a conservation officer, or an employee
designated under section 84.0835.
(b) The commissioner of natural resources shall issue a pass upon application and
payment of a $20 fee. The pass is valid from January 1 through December 31. Fees
collected under this section, except for the issuing fee for licensing agents, shall be
deposited in the state treasury and credited to the all-terrain vehicle account in the natural
resources fund and, except for the electronic licensing system commission established by
the commissioner under section 84.027, subdivision 15, must be used for grants-in-aid to
counties and municipalities for all-terrain vehicle organizations to construct and maintain
all-terrain vehicle trails and use areas.
    (c) A nonresident all-terrain vehicle state trail pass is not required for:
    (1) an all-terrain vehicle that is owned and used by the United States, another state,
or a political subdivision thereof that is exempt from registration under section 84.922,
subdivision 1a; or
    (2) a person operating an all-terrain vehicle only on the portion of a trail that is
owned by the person or the person's spouse, child, or parent.; or
(3) a nonresident operating an all-terrain vehicle that is registered according to
section 84.922.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. Minnesota Statutes 2009 Supplement, section 84.928, subdivision 1, is
amended to read:
    Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise
allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in
this state along or on the roadway, shoulder, or inside bank or slope of a public road
right-of-way of a trunk, county state-aid, or county highway.
    (b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside
bank or slope of a trunk, county state-aid, or county highway unless prohibited under
paragraph (d) or (f).
    (c) A person may operate a class 2 all-terrain vehicle within the public road
right-of-way of a county state-aid or county highway on the extreme right-hand side of
the road and left turns may be made from any part of the road if it is safe to do so under
the prevailing conditions, unless prohibited under paragraph (d) or (f). A person may
operate a class 2 all-terrain vehicle on the bank or ditch of a public road right-of-way on a
designated class 2 all-terrain vehicle trail.
    (d) A road authority as defined under section 160.02, subdivision 25, may after a
public hearing restrict the use of all-terrain vehicles in the public road right-of-way under
its jurisdiction.
    (e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the
operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside
bank or slope of a trunk, interstate, county state-aid, or county highway:
(1) that is part of a funded grant-in-aid trail; or
(2) when the all-terrain vehicle is:
    (1) owned by or operated under contract with a publicly or privately owned utility
or pipeline company; and
    (2) used for work on utilities or pipelines.
    (f) The commissioner may limit the use of a right-of-way for a period of time if the
commissioner determines that use of the right-of-way causes:
    (1) degradation of vegetation on adjacent public property;
    (2) siltation of waters of the state;
    (3) impairment or enhancement to the act of taking game; or
    (4) a threat to safety of the right-of-way users or to individuals on adjacent public
property.
    The commissioner must notify the road authority as soon as it is known that a closure
will be ordered. The notice must state the reasons and duration of the closure.
    (g) A person may operate an all-terrain vehicle registered for private use and used
for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or
county highway in this state if the all-terrain vehicle is operated on the extreme right-hand
side of the road, and left turns may be made from any part of the road if it is safe to do so
under the prevailing conditions.
    (h) A person shall not operate an all-terrain vehicle within the public road
right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in
the agricultural zone unless the vehicle is being used exclusively as transportation to and
from work on agricultural lands. This paragraph does not apply to an agent or employee
of a road authority, as defined in section 160.02, subdivision 25, or the Department of
Natural Resources when performing or exercising official duties or powers.
    (i) A person shall not operate an all-terrain vehicle within the public road
right-of-way of a trunk, county state-aid, or county highway between the hours of one-half
hour after sunset to one-half hour before sunrise, except on the right-hand side of the
right-of-way and in the same direction as the highway traffic on the nearest lane of the
adjacent roadway.
    (j) A person shall not operate an all-terrain vehicle at any time within the
right-of-way of an interstate highway or freeway within this state.

    Sec. 24. Minnesota Statutes 2008, section 84.928, subdivision 5, is amended to read:
    Subd. 5. Organized contests, use of highways and public lands and waters. (a)
Nothing in this section or chapter 169 prohibits the use of all-terrain vehicles within the
right-of-way of a state trunk or county state-aid highway or upon public lands or waters
under the jurisdiction of the commissioner of natural resources, in an organized contest or
event, subject to the consent of the official or board having jurisdiction over the highway
or public lands or waters.
(b) In permitting the contest or event, the official or board having jurisdiction may
prescribe restrictions or conditions as they may deem advisable.
(c) Notwithstanding section 84.9256, subdivision 1, paragraph (b), a person under
12 years of age may operate an all-terrain vehicle in an organized contest on public lands
or waters, if the all-terrain vehicle has an engine capacity of 90cc or less, the person
complies with section 84.9256, subdivision 1, paragraph (h), and the person is supervised
by a person 18 years of age or older.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 25. Minnesota Statutes 2008, section 84D.10, is amended by adding a subdivision
to read:
    Subd. 4. Persons leaving public waters. (a) A person leaving waters of the state
must drain boating-related equipment holding water and live wells and bilges by removing
the drain plug before transporting the watercraft and associated equipment on public
roads. Drain plugs, bailers, valves, or other devices used to control the draining of water
from ballast tanks, bilges, and live wells must be removed or opened while transporting
watercraft on a public road. Marine sanitary systems and portable bait containers are
excluded from this requirement. A person must not dispose of bait in waters of the state.
(b) The commissioner shall report, by January 15 of each odd-numbered year, to
the chairs and ranking minority members of the house of representatives and senate
committees and divisions having jurisdiction over water resources policy and finance. The
report shall advise the legislature on additional measures to protect state water resources
from human transport of invasive species.

    Sec. 26. Minnesota Statutes 2008, section 84D.13, subdivision 5, is amended to read:
    Subd. 5. Civil penalties. A civil citation issued under this section must impose
the following penalty amounts:
(1) for transporting aquatic macrophytes on a forest road as defined by section
89.001, subdivision 14, road or highway as defined by section 160.02, subdivision 26, or
any other public road, $50;
(2) for placing or attempting to place into waters of the state a watercraft, a trailer, or
aquatic plant harvesting equipment that has aquatic macrophytes attached, $100;
(3) for unlawfully possessing or transporting a prohibited invasive species other
than an aquatic macrophyte, $250;
(4) for placing or attempting to place into waters of the state a watercraft, a trailer, or
aquatic plant harvesting equipment that has prohibited invasive species attached when
the waters are not designated by the commissioner as being infested with that invasive
species, $500 for the first offense and $1,000 for each subsequent offense;
(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as
prescribed by rule, Eurasian water milfoil, $100;
(6) for failing to drain water, as required by rule, for infested waters and from
watercraft and equipment, other than marine sanitary systems and portable bait containers
before leaving designated zebra mussel, spiny water flea, or other invasive plankton
infested waters of the state, $50; and
(7) for transporting infested water off riparian property without a permit as required
by rule, $200.

    Sec. 27. Minnesota Statutes 2009 Supplement, section 85.015, subdivision 13, is
amended to read:
    Subd. 13. Arrowhead Region Trails, in Cook, Lake, St. Louis, Pine, Carlton,
Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St.
Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
Itasca County and there terminate;
(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
Marais in Cook County, thence northeasterly to the international boundary in the vicinity
of the north shore of Lake Superior, and there terminate;
(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
Louis County to International Falls in Koochiching County, and there terminate;
(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and
extend southerly to St. Croix State Forest in Pine County.
(b) The trails shall be developed primarily for riding and hiking.
(c) In addition to the authority granted in subdivision 1, lands and interests in lands
for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
any land or interest in land by eminent domain the commissioner of administration shall
obtain the approval of the governor. The governor shall consult with the Legislative
Advisory Commission before granting approval. Recommendations of the Legislative
Advisory Commission shall be advisory only. Failure or refusal of the commission to
make a recommendation shall be deemed a negative recommendation.

    Sec. 28. Minnesota Statutes 2008, section 85.015, subdivision 14, is amended to read:
    Subd. 14. Willard Munger Trail System, Chisago, Ramsey, Pine, St. Louis,
Carlton, and Washington Counties. (a) The trail shall consist of six segments. One
segment shall be known as the Gateway Trail and shall originate at the State Capitol
and extend northerly and northeasterly to William O'Brien State Park, thence northerly
to Taylors Falls in Chisago County. One segment shall be known as the Boundary Trail
and shall originate in Chisago County and extend into Duluth in St. Louis Hinckley in
Pine County. One segment shall be known as the Browns Creek Trail and shall originate
at Duluth Junction and extend into Stillwater in Washington County. One segment shall
be known as the Munger Trail and shall originate at Hinckley in Pine County and extend
through Moose Lake in Carlton County to Duluth in St. Louis County. One segment shall
be known as the Alex Laveau Trail and shall originate in Carlton County at Carlton and
extend through Wrenshall to the Minnesota-Wisconsin border. One segment shall be
established that extends the trail to include the cities of Proctor, Duluth, and Hermantown
in St. Louis County.
    (b) The Gateway and Browns Creek Trails shall be developed primarily for hiking
and nonmotorized riding and the remaining trails shall be developed primarily for riding
and hiking.
    (c) In addition to the authority granted in subdivision 1, lands and interests in lands
for the Gateway and Browns Creek Trails may be acquired by eminent domain.

    Sec. 29. Minnesota Statutes 2008, section 85.052, subdivision 4, is amended to read:
    Subd. 4. Deposit of fees. (a) Fees paid for providing contracted products and
services within a state park, state recreation area, or wayside, and for special state park
uses under this section shall be deposited in the natural resources fund and credited to a
state parks account.
(b) Gross receipts derived from sales, rentals, or leases of natural resources within
state parks, recreation areas, and waysides, other than those on trust fund lands, must be
deposited in the state treasury and credited to the general fund state parks working capital
account. The appropriation under section 85.22 for revenue deposited in this section is
limited to $25,000 per fiscal year.
(c) Notwithstanding paragraph (b), the gross receipts from the sale of stockpile
materials, aggregate, or other earth materials from the Iron Range Off-Highway Vehicle
Recreation Area shall be deposited in the dedicated accounts in the natural resources fund
from which the purchase of the stockpile material was made.
EFFECTIVE DATE.This section is effective July 1, 2011.

    Sec. 30. Minnesota Statutes 2009 Supplement, section 85.053, subdivision 10, is
amended to read:
    Subd. 10. Free entrance; totally and permanently disabled veterans. The
commissioner shall issue an annual park permit for no charge to any veteran with a total
and permanent service-connected disability, and a daily park permit to any resident
veteran with any level of service-connected disability, as determined by the United States
Department of Veterans Affairs, who presents each year a copy of their the veteran's
determination letter to a park attendant or commissioner's designee. For the purposes of
this section, "veteran" has the meaning given in section 197.447.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 31. Minnesota Statutes 2008, section 85.22, subdivision 5, is amended to read:
    Subd. 5. Exemption. Purchases for resale or rental made from the state parks
working capital fund account are exempt from competitive bidding, notwithstanding
chapter 16C.

    Sec. 32. Minnesota Statutes 2008, section 85.32, subdivision 1, is amended to read:
    Subdivision 1. Areas marked. The commissioner of natural resources is authorized
in cooperation with local units of government and private individuals and groups when
feasible to mark canoe and boating routes state water trails on the Little Fork, Big Fork,
Minnesota, St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines,
Crow Wing, St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre
within Swift County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in
Swift County to Montevideo in Chippewa County, Long Prairie, Red River of the North,
Sauk, Otter Tail, Redwood, Blue Earth, and Crow Rivers which have historic and scenic
values and to mark appropriately points of interest, portages, camp sites, and all dams,
rapids, waterfalls, whirlpools, and other serious hazards which are dangerous to canoe,
kayak, and watercraft travelers.

    Sec. 33. Minnesota Statutes 2008, section 85.41, subdivision 3, is amended to read:
    Subd. 3. Exemptions. (a) Participants in cross-country ski races and official school
activities and residents of a state or local government operated correctional facility are
exempt from the pass requirement in subdivision 1 if a special use permit has been
obtained by the organizers of the event or those in an official capacity in advance from the
agency with jurisdiction over the cross-country ski trail. Permits shall require that permit
holders return the trail and any associated facility to its original condition if any damage
is done by the permittee. Limited permits for special events may be issued and shall
require the removal of any trail markers, banners, and other material used in connection
with the special event.
(b) Unless otherwise exempted under paragraph (a), students, teachers, and
supervising adults engaged in school-sanctioned activities or youth activities sponsored by
a nonprofit organization are exempt from the pass requirements in subdivision 1.
(c) A resident that is in the armed forces of the United States, stationed outside of
the state, and in the state on leave is exempt from the pass requirement in subdivision 1 if
the resident possesses official military leave papers.
(d) A resident who has served at any time during the preceding 24 months in federal
active service, as defined in section 190.05, subdivision 5c, outside the United States as
a member of the National Guard, or as a reserve component or active duty member of
the United Stated armed forces and has been discharged from active service is exempt
from the pass requirement in subdivision 1 if the resident possesses official military
discharge papers.

    Sec. 34. Minnesota Statutes 2008, section 85.42, is amended to read:
85.42 USER FEE; VALIDITY.
(a) The fee for an annual cross-country ski pass is $14 $19 for an individual age 16
and over. The fee for a three-year pass is $39 $54 for an individual age 16 and over. This
fee shall be collected at the time the pass is purchased. Three-year passes are valid for
three years beginning the previous July 1. Annual passes are valid for one year beginning
the previous July 1.
(b) The cost for a daily cross-country skier pass is $4 $5 for an individual age 16 and
over. This fee shall be collected at the time the pass is purchased. The daily pass is valid
only for the date designated on the pass form.
(c) A pass must be signed by the skier across the front of the pass to be valid and
becomes nontransferable on signing.

    Sec. 35. Minnesota Statutes 2008, section 85.43, is amended to read:
85.43 DISPOSITION OF RECEIPTS; PURPOSE.
(a) Fees from cross-country ski passes shall be deposited in the state treasury and
credited to a cross-country ski account in the natural resources fund and, except for the
electronic licensing system commission established by the commissioner under section
84.027, subdivision 15, are appropriated to the commissioner of natural resources for
the following purposes:
(1) grants-in-aid for cross-country ski trails sponsored by local units of government
to:
(i) counties and municipalities for construction and maintenance of cross-country
ski trails; and
(ii) special park districts as provided in section 85.44 for construction and
maintenance of cross-country ski trails; and
(2) administration of the cross-country ski trail grant-in-aid program.
(b) Development and maintenance of state cross-country ski trails are eligible for
funding from the cross-country ski account if the money is appropriated by law.

    Sec. 36. Minnesota Statutes 2008, section 85.46, as amended by Laws 2009, chapter
37, article 1, sections 22 to 24, is amended to read:
85.46 HORSE TRAIL PASS.
    Subdivision 1. Pass in possession. (a) Except as provided in paragraph (b), while
riding, leading, or driving a horse on horse trails and associated day use areas on state
trails, in state parks, in state recreation areas, and in state forests, on lands administered by
the commissioner, except forest roads and forest roads rights-of-way, a person 16 years of
age or over shall carry in immediate possession a valid horse trail pass. The pass must
be available for inspection by a peace officer, a conservation officer, or an employee
designated under section 84.0835.
    (b) A valid horse trail pass is not required under this section for a person riding,
leading, or driving a horse only on the portion of a horse trail property that is owned by
the person or the person's spouse, child, parent, or guardian.
    Subd. 2. License agents. (a) The commissioner of natural resources may appoint
agents to issue and sell horse trail passes. The commissioner may revoke the appointment
of an agent at any time.
(b) The commissioner may adopt additional rules as provided in section 97A.485,
subdivision 11. An agent shall observe all rules adopted by the commissioner for the
accounting and handling of passes according to section 97A.485, subdivision 11.
(c) An agent must promptly deposit and remit all money received from the sale of
passes, except issuing fees, to the commissioner.
    Subd. 3. Issuance. The commissioner of natural resources and agents shall issue
and sell horse trail passes. The pass shall include the applicant's signature and other
information deemed necessary by the commissioner. To be valid, a daily or annual pass
must be signed by the person riding, leading, or driving the horse, and a commercial
annual pass must be signed by the owner of the commercial trail riding facility.
    Subd. 4. Pass fees. (a) The fee for an annual horse trail pass is $20 for an individual
16 years of age and over. The fee shall be collected at the time the pass is purchased.
Annual passes are valid for one year beginning January 1 and ending December 31.
(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and
over. The fee shall be collected at the time the pass is purchased. The daily pass is valid
only for the date designated on the pass form.
(c) The fee for a commercial annual horse trail pass is $200 and includes issuance
of 15 passes. Additional or individual commercial annual horse trail passes may be
purchased by the commercial trail riding facility owner at a fee of $20 each. Commercial
annual horse trail passes are valid for one year beginning January 1 and ending December
31 and may be affixed to the horse tack, saddle, or person. Commercial annual horse trail
passes are not transferable to another commercial trail riding facility. For the purposes of
this section, a "commercial trail riding facility" is an operation where horses are used for
riding instruction or other equestrian activities for hire or use by others.
    Subd. 5. Issuing fee. In addition to the fee for a horse trail pass, an issuing fee of
$1 per pass shall be charged. The issuing fee shall be retained by the seller of the pass.
Issuing fees for passes sold by the commissioner of natural resources shall be deposited
in the state treasury and credited to the horse trail pass account in the natural resources
fund and are appropriated to the commissioner for the operation of the electronic licensing
system. A pass shall indicate the amount of the fee that is retained by the seller.
    Subd. 6. Disposition of receipts. Fees collected under this section, except for
the issuing fee, shall be deposited in the state treasury and credited to the horse trail
pass account in the natural resources fund. Except for the electronic licensing system
commission established by the commissioner under section 84.027, subdivision 15, the
fees are appropriated to the commissioner of natural resources for trail acquisition, trail and
facility development, and maintenance, enforcement, and rehabilitation of horse trails or
trails authorized for horse use, whether for riding, leading, or driving, on state trails and in
state parks, state recreation areas, and state forests land administered by the commissioner.
    Subd. 7. Duplicate horse trail passes. The commissioner of natural resources and
agents shall issue a duplicate pass to a person or commercial trail riding facility owner
whose pass is lost or destroyed using the process established under section 97A.405,
subdivision 3, and rules adopted thereunder. The fee for a duplicate horse trail pass is $2,
with an issuing fee of 50 cents.

    Sec. 37. Minnesota Statutes 2009 Supplement, section 86A.09, subdivision 1, is
amended to read:
    Subdivision 1. Master plan required. No construction of new facilities or other
development of an authorized unit, other than repairs and maintenance, shall commence
until the managing agency has prepared and submitted to the commissioner of natural
resources and the commissioner has reviewed, pursuant to this section, a master plan for
administration of the unit in conformity with this section. No master plan is required for
wildlife management areas that do not have resident managers, for scientific and natural
areas, for water access sites, for aquatic management areas, for rest areas, or for boater
waysides.

    Sec. 38. Minnesota Statutes 2008, section 86B.301, subdivision 2, is amended to read:
    Subd. 2. Exemptions. A watercraft license is not required for:
(1) a watercraft that is covered by a license or number in full force and effect under
federal law or a federally approved licensing or numbering system of another state, and
has not been within this state for more than 90 consecutive days, which does not include
days that a watercraft is laid up at dock over winter or for repairs at a Lake Superior
port or another port in the state;
(2) a watercraft from a country other than the United States that has not been
within this state for more than 90 consecutive days, which does not include days that a
watercraft is laid up at dock over winter or for repairs at a Lake Superior port or another
port in the state;
(3) a watercraft owned by the United States, an Indian tribal government, a state, or
a political subdivision of a state, except watercraft used for recreational purposes;
(4) a ship's lifeboat;
(5) a watercraft that has been issued a valid marine document by the United States
government;
(6) a duck boat during duck hunting season;
(7) a rice boat during the harvest season;
(8) a seaplane; and
(9) a nonmotorized watercraft nine feet in length or less.
EFFECTIVE DATE.This section is effective the day following a notice published
in the State Register by the commissioner of natural resources that the change in clause
(3) has been approved by the United States Coast Guard pursuant to Code of Federal
Regulations, title 33, section 174.7.

    Sec. 39. Minnesota Statutes 2008, section 86B.501, is amended by adding a
subdivision to read:
    Subd. 4. Rowing team members; personal flotation devices. Notwithstanding
subdivision 1, a member of a rowing team that is sanctioned by an academic or nonprofit
entity is not required to wear or possess, and no local ordinance or rule may require a
member of a rowing team to wear or possess, a personal flotation device in a racing shell
if a chase boat carrying the devices prescribed under subdivision 1 accompanies the racing
shell. The requirement for a chase boat does not apply on waters where it is preempted by
federal regulations.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 40. Minnesota Statutes 2008, section 88.17, subdivision 1, is amended to read:
    Subdivision 1. Permit Permission required. (a) A permit Permission to start a fire
to burn vegetative materials and other materials allowed by Minnesota Statutes or official
state rules and regulations may be given by the commissioner or the commissioner's agent.
This permission shall be in the form of:
(1) a written permit issued by a forest officer, fire warden, or other person authorized
by the commissioner; or
(2) an electronic permit issued by the commissioner, an agent authorized by the
commissioner, or an Internet site authorized by the commissioner; or
(3) a general permit adopted by the county board of commissioners according to
paragraph (c).
(b) Written and electronic burning permits shall set the time and conditions by which
the fire may be started and burned. The permit shall also specifically list the materials that
may be burned. The permittee must have the permit on their person and shall produce
the permit for inspection when requested to do so by a forest officer, conservation officer,
or other peace officer. The permittee shall remain with the fire at all times and before
leaving the site shall completely extinguish the fire. A person shall not start or cause a
fire to be started on any land that is not owned or under their legal control without the
written permission of the owner, lessee, or an agent of the owner or lessee of the land.
Violating or exceeding the permit conditions shall constitute a misdemeanor and shall be
cause for the permit to be revoked.
(c) A general burning permit may be adopted by the county board of commissioners
in counties that are determined by the commissioner either to not be wildfire areas as
defined in section 88.01, subdivision 6, or to otherwise have low potential for damage
to life and property from wildfire. The commissioner shall consider the history of and
potential for wildfire; the distribution of trees, brush, grasslands, and other vegetative
material; and the distribution of property subject to damage from escaped fires. Upon a
determination by the commissioner and adoption by a vote of the county board, permission
for open burning is extended to all residents in the county without the need for individual
written or electronic permits under this subdivision, provided burning conforms to all
other provisions of this chapter, including those related to responsibility to control and
extinguish fires, no burning of prohibited materials, and liability for damages caused by
violations of this chapter.
(d) Upon adoption of a general burning permit, a county must establish specific
regulations by ordinance, to include at a minimum the time when and conditions under
which fires may be started and burned. No ordinance may be less restrictive than state law.
(e) At any time when the commissioner or the county board determines that a general
burning permit is no longer in the public interest, the general permit may be canceled
by the commissioner or the county board.

    Sec. 41. Minnesota Statutes 2008, section 88.17, subdivision 3, is amended to read:
    Subd. 3. Special permits. The following special permits are required at all times,
including when the ground is snow-covered:
(a) Fire training. A permit to start a fire for the instruction and training of
firefighters, including liquid fuels training, may be given by the commissioner or agent of
the commissioner. Except for owners or operators conducting fire training in specialized
industrial settings pursuant to applicable federal, state, or local standards, owners
or operators conducting open burning for the purpose of instruction and training of
firefighters with regard to structures must follow the techniques described in a document
entitled: Structural Burn Training Procedures for the Minnesota Technical College System.
(b) Permanent tree and brush open burning sites. A permit for the operation of
a permanent tree and brush burning site may be given by the commissioner or agent of
the commissioner. Applicants for a permanent open burning site permit shall submit a
complete application on a form provided by the commissioner. Existing permanent tree
and brush open burning sites must submit for a permit within 90 days of the passage of
this statute for a burning permit. New site applications must be submitted at least 90
days before the date of the proposed operation of the permanent open burning site. The
application must be submitted to the commissioner and must contain:
(1) the name, address, and telephone number of all owners of the site proposed for
use as the permanent open burning site;
(2) if the operator for the proposed permanent open burning site is different from the
owner, the name, address, and telephone number of the operator;
(3) a general description of the materials to be burned, including the source and
estimated quantity, dimensions of the site and burn pile areas, hours and dates of operation,
and provisions for smoke management; and
(4) a topographic or similarly detailed map of the site and surrounding area within
a one mile circumference showing all structures that might be affected by the operation
of the site.
Only trees, tree trimmings, or brush that cannot be disposed of by an alternative
method such as chipping, composting, or other method shall be permitted to be burned
at a permanent open burning site. A permanent tree and brush open burning site must
be located and operated so as not to create a nuisance or endanger water quality. The
commissioner shall revoke the permit or order actions to mitigate threats to public health,
safety, and the environment in the event that permit conditions are violated.

    Sec. 42. Minnesota Statutes 2008, section 88.79, subdivision 2, is amended to read:
    Subd. 2. Charge for service; receipts to special revenue fund. Notwithstanding
section 16A.1283, the commissioner of natural resources may charge the owner, by
written order published in the State Register, establish fees the commissioner determines
to be fair and reasonable that are charged to owners receiving such services such sums
as the commissioner shall determine to be fair and reasonable under subdivision 1. The
charges must account for differences in the value of timber and other benefits. The receipts
from such the services shall be credited to the special revenue fund and are annually
appropriated to the commissioner for the purposes specified in subdivision 1.

    Sec. 43. Minnesota Statutes 2008, section 89.17, is amended to read:
89.17 LEASES AND PERMITS.
Notwithstanding the permit procedures of chapter 90, the commissioner shall have
power to grant and execute, in the name of the state, leases and permits for the use of
any forest lands under the authority of the commissioner for any purpose which in the
commissioner's opinion is not inconsistent with the maintenance and management of the
forest lands, on forestry principles for timber production. Every such lease or permit shall
be revocable at the discretion of the commissioner at any time subject to such conditions
as may be agreed on in the lease. The approval of the commissioner of administration
shall not be required upon any such lease or permit. No such lease or permit for a period
exceeding ten 21 years shall be granted except with the approval of the Executive Council.
Hunting of wild game is prohibited on any land which has been posted by the lessee
to prohibit hunting. Such prohibition shall apply to all persons including the lessee Public
access to the leased land for outdoor recreation shall be the same as access would be
under state management.

    Sec. 44. Minnesota Statutes 2008, section 90.041, is amended by adding a subdivision
to read:
    Subd. 9. Reoffering unsold timber. To maintain and enhance forest ecosystems on
state forest lands, the commissioner may reoffer timber tracts remaining unsold under the
provisions of section 90.101 below appraised value at public auction with the required
30-day notice under section 90.101, subdivision 2.

    Sec. 45. Minnesota Statutes 2008, section 90.121, is amended to read:
90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000
CORDS.
(a) The commissioner may sell the timber on any tract of state land in lots not
exceeding 3,000 cords in volume, in the same manner as timber sold at public auction
under section 90.101, and related laws, subject to the following special exceptions and
limitations:
(1) the commissioner shall offer all tracts authorized for sale by this section
separately from the sale of tracts of state timber made pursuant to section 90.101;
(2) no bidder may be awarded more than 25 percent of the total tracts offered at the
first round of bidding unless fewer than four tracts are offered, in which case not more
than one tract shall be awarded to one bidder. Any tract not sold at public auction may be
offered for private sale as authorized by section 90.101, subdivision 1, to persons eligible
under this section at the appraised value; and
(3) no sale may be made to a person having more than 20 30 employees. For the
purposes of this clause, "employee" means an individual working in the timber or wood
products industry for salary or wages on a full-time or part-time basis.
(b) The auction sale procedure set forth in this section constitutes an additional
alternative timber sale procedure available to the commissioner and is not intended to
replace other authority possessed by the commissioner to sell timber in lots of 3,000
cords or less.
(c) Another bidder or the commissioner may request that the number of employees a
bidder has pursuant to paragraph (a), clause (3), be confirmed if there is evidence that the
bidder may be ineligible due to exceeding the employee threshold. The commissioner
shall request information from the commissioners of labor and industry and employment
and economic development including the premiums paid by the bidder in question
for workers' compensation insurance coverage for all employees of the bidder. The
commissioner shall review the information submitted by the commissioners of labor and
industry and employment and economic development and make a determination based on
that information as to whether the bidder is eligible. A bidder is considered eligible and
may participate in intermediate auctions until determined ineligible under this paragraph.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2006.

    Sec. 46. Minnesota Statutes 2008, section 90.14, is amended to read:
90.14 AUCTION SALE PROCEDURE.
(a) All state timber shall be offered and sold by the same unit of measurement as it
was appraised. No tract shall be sold to any person other than the purchaser in whose name
the bid was made. The commissioner may refuse to approve any and all bids received and
cancel a sale of state timber for good and sufficient reasons.
(b) The purchaser at any sale of timber shall, immediately upon the approval of the
bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under
section 90.101, subdivision 1, pay to the commissioner a down payment of 15 percent
of the appraised value. In case any purchaser fails to make such payment, the purchaser
shall be liable therefor to the state in a civil action, and the commissioner may reoffer the
timber for sale as though no bid or sale under section 90.101, subdivision 1, therefor
had been made.
(c) In lieu of the scaling of state timber required by this chapter, a purchaser of
state timber may, at the time of payment by the purchaser to the commissioner of 15
percent of the appraised value, elect in writing on a form prescribed by the attorney
general to purchase a permit based solely on the appraiser's estimate of the volume of
timber described in the permit, provided that the commissioner has expressly designated
the availability of such option for that tract on the list of tracts available for sale as
required under section 90.101. A purchaser who elects in writing on a form prescribed
by the attorney general to purchase a permit based solely on the appraiser's estimate of
the volume of timber described on the permit does not have recourse to the provisions
of section 90.281.
(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall
be awarded to the high bidder, who shall pay to the commissioner a down payment of 15
percent of the appraised value within ten business days of receiving a written award
notice that must be received or postmarked within 14 days of the date of the sealed bid
opening. If a purchaser fails to make the down payment, the purchaser is liable for the
down payment to the state and the commissioner may offer the timber for sale to the next
highest bidder as though no higher bid had been made.
(e) Except as otherwise provided by law, at the time the purchaser signs a permit
issued under section 90.151, the commissioner shall require the purchaser shall to make
a bid guarantee payment to the commissioner in an amount equal to 15 percent of the
total purchase price of the permit less the down payment amount required by paragraph
(b) for any bid increase in excess of $5,000 of the appraised value. If the a required bid
guarantee payment is not submitted with the signed permit, no harvesting may occur, the
permit cancels, and the down payment for timber forfeits to the state. The bid guarantee
payment forfeits to the state if the purchaser and successors in interest fail to execute
an effective permit.

    Sec. 47. Minnesota Statutes 2008, section 97B.665, subdivision 2, is amended to read:
    Subd. 2. Petition to district court. If a beaver dam causes a threat to personal
safety or a serious threat to damage property, and a person cannot obtain consent under
subdivision 1, a person may petition the district court for relief. The court may order the
commissioner owners of private property where beaver dams are located to take action
to reduce the threat. A permit is not required for an action ordered by the court. The
action may include destruction or alteration of beaver dams and removal of beaver. This
subdivision does not apply to state parks, state game refuges, and federal game refuges.

    Sec. 48. [103A.212] WATERSHED MANAGEMENT POLICY.
    The quality of life of every Minnesotan depends on water. Minnesota's rivers, lakes,
streams, wetlands, and groundwater provide a foundation for drinking water and the state's
recreational, municipal, commercial, industrial, agricultural, environmental, aesthetic, and
economic well-being. The legislature finds that it is in the public interest to manage
groundwater and surface water resources from the perspective of aquifers, watersheds,
and river basins to achieve protection, preservation, enhancement, and restoration of the
state's valuable groundwater and surface water resources.

    Sec. 49. Minnesota Statutes 2008, section 103A.305, is amended to read:
103A.305 JURISDICTION.
Sections 103A.301 to 103A.341 apply if the decision of an agency in a proceeding
involves a question of water policy in one or more of the areas of water conservation, water
pollution, preservation and management of wildlife, drainage, soil conservation, public
recreation, forest management, and municipal planning under section 97A.135; 103A.411;
103E.011; 103E.015; 103G.245; 103G.261; 103G.271; 103G.275; 103G.281; 103G.295,
subdivisions 1 and 2
; 103G.287; 103G.297 to 103G.311; 103G.315, subdivisions 1, 10,
11, and 12
; 103G.401; 103G.405; 103I.681, subdivision 1; 115.04; or 115.05.

    Sec. 50. Minnesota Statutes 2008, section 103B.702, is amended by adding a
subdivision to read:
    Subd. 10. Decisions; review and approval. Decisions of the Star Lake Board
regarding the criteria used to designate a lake or river as a "Minnesota Star Lake" or
"Minnesota Star River," as well as a decision to award grants, are subject to the review
and approval of the Board of Water and Soil Resources.

    Sec. 51. Minnesota Statutes 2009 Supplement, section 103G.201, is amended to read:
103G.201 PUBLIC WATERS INVENTORY.
(a) The commissioner shall maintain a public waters inventory map of each county
that shows the waters of this state that are designated as public waters under the public
waters inventory and classification procedures prescribed under Laws 1979, chapter
199, and shall provide access to a copy of the maps and lists. As county public waters
inventory maps and lists are revised according to this section, the commissioner shall send
a notification or a copy of the maps and lists to the auditor of each affected county.
(b) The commissioner is authorized to revise the list map of public waters established
under Laws 1979, chapter 199, to reclassify those types 3, 4, and 5 wetlands previously
identified as public waters wetlands under Laws 1979, chapter 199, as public waters or as
wetlands under section 103G.005, subdivision 19. The commissioner may only reclassify
public waters wetlands as public waters if:
(1) they are assigned a shoreland management classification by the commissioner
under sections 103F.201 to 103F.221;
(2) they are classified as lacustrine wetlands or deepwater habitats according to
Classification of Wetlands and Deepwater Habitats of the United States (Cowardin,
et al., 1979 edition); or
(3) the state or federal government has become titleholder to any of the beds or
shores of the public waters wetlands, subsequent to the preparation of the public waters
inventory map filed with the auditor of the county, pursuant to paragraph (a), and the
responsible state or federal agency declares that the water is necessary for the purposes
of the public ownership.
(c) The commissioner must provide notice of the reclassification to the local
government unit, the county board, the watershed district, if one exists for the area, and
the soil and water conservation district. Within 60 days of receiving notice from the
commissioner, a party required to receive the notice may provide a resolution stating
objections to the reclassification. If the commissioner receives an objection from a party
required to receive the notice, the reclassification is not effective. If the commissioner does
not receive an objection from a party required to receive the notice, the reclassification
of a wetland under paragraph (b) is effective 60 days after the notice is received by all
of the parties.
(d) The commissioner shall give priority to the reclassification of public waters
wetlands that are or have the potential to be affected by public works projects.
(e) The commissioner may revise the public waters inventory map and list of each
county:
(1) to reflect the changes authorized in paragraph (b); and
(2) as needed, to:
(i) correct errors in the original inventory;
(ii) add or subtract trout stream tributaries within sections that contain a designated
trout stream following written notice to the landowner;
(iii) add depleted quarries, and sand and gravel pits, when the body of water exceeds
50 acres and the shoreland has been zoned for residential development; and
(iv) add or subtract public waters that have been created or eliminated as a
requirement of a permit authorized by the commissioner under section 103G.245.

    Sec. 52. Minnesota Statutes 2008, section 103G.271, subdivision 3, is amended to read:
    Subd. 3. Permit restriction during summer months. The commissioner must not
modify or restrict the amount of appropriation from a groundwater source authorized in a
water use permit issued to irrigate agricultural land under section 103G.295, subdivision
2
, between May 1 and October 1, unless the commissioner determines the authorized
amount of appropriation endangers a domestic water supply.

    Sec. 53. [103G.282] MONITORING TO EVALUATE IMPACTS FROM
APPROPRIATIONS.
    Subdivision 1. Monitoring equipment. The commissioner may require the
installation and maintenance of monitoring equipment to evaluate water resource impacts
from permitted appropriations and proposed projects that require a permit. Monitoring for
water resources that supply more than one appropriator must be designed to minimize
costs to individual appropriators.
    Subd. 2. Measuring devices required. Monitoring installations required under
subdivision 1 must be equipped with automated measuring devices to measure water
levels, flows, or conditions. The commissioner may determine the frequency of
measurements and other measuring methods based on the quantity of water appropriated
or used, the source of water, potential connections to other water resources, the method
of appropriating or using water, seasonal and long-term changes in water levels, and any
other facts supplied to the commissioner.
    Subd. 3. Reports and costs. (a) Records of water measurements under subdivision
2 must be kept for each installation. The measurements must be reported annually to the
commissioner on or before February 15 of the following year in a format or on forms
prescribed by the commissioner.
(b) The owner or person in charge of an installation for appropriating or using
waters of the state or a proposal that requires a permit is responsible for all costs related
to establishing and maintaining monitoring installations and to measuring and reporting
data. Monitoring costs for water resources that supply more than one appropriator may be
distributed among all users within a monitoring area determined by the commissioner and
assessed based on volumes of water appropriated and proximity to resources of concern.

    Sec. 54. Minnesota Statutes 2008, section 103G.285, subdivision 5, is amended to read:
    Subd. 5. Trout streams. Permits issued after June 3, 1977, to appropriate water
from streams designated trout streams by the commissioner's orders under section 97C.021
97C.005 must be limited to temporary appropriations.

    Sec. 55. [103G.287] GROUNDWATER APPROPRIATIONS.
    Subdivision 1. Applications for groundwater appropriations. (a) Groundwater
use permit applications are not complete until the applicant has supplied:
(1) a water well record as required by section 103I.205, subdivision 9, information
on the subsurface geologic formations penetrated by the well and the formation or aquifer
that will serve as the water source, and geologic information from test holes drilled to
locate the site of the production well;
(2) the maximum daily, seasonal, and annual pumpage rates and volumes being
requested;
(3) information on groundwater quality in terms of the measures of quality
commonly specified for the proposed water use and details on water treatment necessary
for the proposed use;
(4) an inventory of existing wells within 1-1/2 miles of the proposed production well
or within the area of influence, as determined by the commissioner. The inventory must
include information on well locations, depths, geologic formations, depth of the pump or
intake, pumping and nonpumping water levels, and details of well construction; and
(5) the results of an aquifer test completed according to specifications approved by
the commissioner. The test must be conducted at the maximum pumping rate requested
in the application and for a length of time adequate to assess or predict impacts to other
wells and surface water and groundwater resources. The permit applicant is responsible
for all costs related to the aquifer test, including the construction of groundwater and
surface water monitoring installations, and water level readings before, during, and after
the aquifer test.
(b) The commissioner may waive an application requirement in this subdivision
if the information provided with the application is adequate to determine whether the
proposed appropriation and use of water is sustainable and will protect ecosystems, water
quality, and the ability of future generations to meet their own needs.
    Subd. 2. Relationship to surface water resources. Groundwater appropriations
that have potential impacts to surface waters are subject to applicable provisions in
section 103G.285.
    Subd. 3. Protection of groundwater supplies. The commissioner may establish
water appropriation limits to protect groundwater resources. When establishing water
appropriation limits to protect groundwater resources, the commissioner must consider
the sustainability of the groundwater resource, including the current and projected water
levels, water quality, whether the use protects ecosystems, and the ability of future
generations to meet their own needs.
    Subd. 4. Groundwater management areas. The commissioner may designate
groundwater management areas and limit total annual water appropriations and uses within
a designated area to ensure sustainable use of groundwater that protects ecosystems, water
quality, and the ability of future generations to meet their own needs. Water appropriations
and uses within a designated management area must be consistent with a plan approved by
the commissioner that addresses water conservation requirements and water allocation
priorities established in section 103G.261.
    Subd. 5. Interference with other wells. The commissioner may issue water use
permits for appropriation from groundwater only if the commissioner determines that the
groundwater use is sustainable to supply the needs of future generations and the proposed
use will not harm ecosystems, degrade water, or reduce water levels beyond the reach
of public water supply and private domestic wells constructed according to Minnesota
Rules, chapter 4725.

    Sec. 56. Minnesota Statutes 2008, section 103G.301, subdivision 6, is amended to read:
    Subd. 6. Filing application. (a) An application for a permit must be filed with the
commissioner and if the proposed activity for which the permit is requested is within a
municipality, or is within or affects a watershed district or a soil and water conservation
district, a copy of the application with maps, plans, and specifications must be served on
the mayor of the municipality, the secretary of the board of managers of the watershed
district, and the secretary of the board of supervisors of the soil and water conservation
district.
(b) If the application is required to be served on a local governmental unit under
this subdivision, proof of service must be included with the application and filed with
the commissioner.

    Sec. 57. Minnesota Statutes 2008, section 103G.305, subdivision 2, is amended to read:
    Subd. 2. Exception. The requirements of subdivision 1 do not apply to applications
for a water use permit for:
(1) appropriations from waters of the state for irrigation, under section 103G.295;
(2) appropriations for diversion from the basin of origin of more than 2,000,000
gallons per day average in a 30-day period; or
(3) (2) appropriations with a consumptive use of more than 2,000,000 gallons per
day average for a 30-day period.

    Sec. 58. Minnesota Statutes 2008, section 103G.315, subdivision 11, is amended to
read:
    Subd. 11. Limitations on permits. (a) Except as otherwise expressly provided by
law, a permit issued by the commissioner under this chapter is subject to:
(1) cancellation by the commissioner at any time if necessary to protect the public
interests;
(2) further conditions on the term of the permit or its cancellation as the
commissioner may prescribe and amend and reissue the permit; and
(3) applicable law existing before or after the issuance of the permit.
(b) Permits issued to irrigate agricultural land under section 103G.295, or considered
issued, are subject to this subdivision and are subject to cancellation by the commissioner
upon the recommendation of the supervisors of the soil and water conservation district
where the land to be irrigated is located.

    Sec. 59. Minnesota Statutes 2008, section 103G.515, subdivision 5, is amended to read:
    Subd. 5. Removal of hazardous dams. Notwithstanding any provision of
this section or of section 103G.511 relating to cost sharing or apportionment, the
commissioner, within the limits of legislative appropriation, may assume or pay the entire
cost of removal of a privately or publicly owned dam upon determining removal provides
the lowest cost solution and:
(1) that continued existence of the structure presents a significant public safety
hazard, or prevents restoration of an important fisheries resource,; or
(2) that public or private property is being damaged due to partial failure of the
structure, and that an attempt to assess costs of removal against the private or public
owner would be of no avail.

    Sec. 60. Minnesota Statutes 2008, section 103G.615, subdivision 2, is amended to read:
    Subd. 2. Fees. (a) The commissioner shall establish a fee schedule for permits to
control or harvest aquatic plants other than wild rice. The fees must be set by rule, and
section 16A.1283 does not apply, but the rule must not take effect until 45 legislative
days after it has been reported to the legislature. The fees shall be based upon the cost
of receiving, processing, analyzing, and issuing the permit, and additional costs incurred
after the application to inspect and monitor the activities authorized by the permit, and
enforce aquatic plant management rules and permit requirements.
    (b) A fee for a permit for the control of rooted aquatic vegetation for each contiguous
parcel of shoreline owned by an owner may be charged. This fee may not be charged for
permits issued in connection with purple loosestrife control or lakewide Eurasian water
milfoil control programs.
    (c) A fee may not be charged to the state or a federal governmental agency applying
for a permit.
    (d) A fee for a permit for the control of rooted aquatic vegetation in a public
water basin that is 20 acres or less in size shall be one-half of the fee established under
paragraph (a).
(e) The money received for the permits under this subdivision shall be deposited in
the treasury and credited to the water recreation account.
EFFECTIVE DATE.This section is effective August 1, 2010.

    Sec. 61. [103G.651] REMOVING SUNKEN LOGS FROM PUBLIC WATERS.
The commissioner of natural resources must not issue leases to remove sunken logs
or issue permits for the removal of sunken logs from public waters.

    Sec. 62. Minnesota Statutes 2008, section 115.55, is amended by adding a subdivision
to read:
    Subd. 13. Subsurface sewage treatment systems implementation and
enforcement task force. (a) By September 1, 2010, the agency shall appoint a subsurface
sewage treatment systems implementation and enforcement task force in collaboration
with the Association of Minnesota Counties, Minnesota Association of Realtors,
Minnesota Association of County Planning and Zoning Administrators, and the Minnesota
Onsite Wastewater Association. The agency shall work in collaboration with the task
force to develop effective and timely implementation and enforcement methods in order to
rapidly reduce the number of subsurface sewage treatment systems that are an imminent
threat to public health or safety and effectively enforce all violations of the subsurface
sewage treatment system rules. The agency shall meet at least three times per year with
the task force to address implementation and enforcement issues. The meetings shall be
scheduled so that they do not interfere with the construction season.
(b) The agency, in collaboration with the task force and in consultation with the
attorney general, county attorneys, and county planning and zoning staff, shall develop,
periodically update, and provide to counties enforcement protocols and a checklist that
county inspectors, field staff, and others may use when inspecting subsurface sewage
treatment systems and enforcing subsurface sewage treatment system rules.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 63. Minnesota Statutes 2008, section 116.07, subdivision 4, is amended to read:
    Subd. 4. Rules and standards. (a) Pursuant and subject to the provisions of chapter
14, and the provisions hereof, the Pollution Control Agency may adopt, amend and rescind
rules and standards having the force of law relating to any purpose within the provisions
of Laws 1967, chapter 882, for the prevention, abatement, or control of air pollution.
Any such rule or standard may be of general application throughout the state, or may be
limited as to times, places, circumstances, or conditions in order to make due allowance
for variations therein. Without limitation, rules or standards may relate to sources or
emissions of air contamination or air pollution, to the quality or composition of such
emissions, or to the quality of or composition of the ambient air or outdoor atmosphere or
to any other matter relevant to the prevention, abatement, or control of air pollution.
    (b) Pursuant and subject to the provisions of chapter 14, and the provisions hereof,
the Pollution Control Agency may adopt, amend, and rescind rules and standards having
the force of law relating to any purpose within the provisions of Laws 1969, chapter
1046, for the collection, transportation, storage, processing, and disposal of solid waste
and the prevention, abatement, or control of water, air, and land pollution which may be
related thereto, and the deposit in or on land of any other material that may tend to cause
pollution. The agency shall adopt such rules and standards for sewage sludge, addressing
the intrinsic suitability of land, the volume and rate of application of sewage sludge of
various degrees of intrinsic hazard, design of facilities, and operation of facilities and sites.
Any such rule or standard may be of general application throughout the state or may be
limited as to times, places, circumstances, or conditions in order to make due allowance
for variations therein. Without limitation, rules or standards may relate to collection,
transportation, processing, disposal, equipment, location, procedures, methods, systems
or techniques or to any other matter relevant to the prevention, abatement or control of
water, air, and land pollution which may be advised through the control of collection,
transportation, processing, and disposal of solid waste and sewage sludge, and the deposit
in or on land of any other material that may tend to cause pollution. By January 1, 1983,
the rules for the management of sewage sludge shall include an analysis of the sewage
sludge determined by the commissioner of agriculture to be necessary to meet the soil
amendment labeling requirements of section 18C.215.
(c) The rules for the disposal of solid waste shall include site-specific criteria to
prohibit solid waste disposal based on the area's sensitivity to groundwater contamination,
including site-specific testing. The rules shall provide criteria for locating landfills
based on a site's sensitivity to groundwater contamination. Sensitivity to groundwater
contamination is based on the predicted minimum time of travel of groundwater
contaminants from the solid waste to the compliance boundary. The rules shall prohibit
landfills in areas where karst is likely to develop. The rules shall specify testable or
otherwise objective thresholds for these criteria. The rules shall also include modifications
to financial assurance requirements under subdivision 4h that ensure the state is protected
from financial responsibility for future groundwater contamination. The modifications to
the financial assurance rules specified in this paragraph must require that a solid waste
disposal facility subject to them maintain financial assurance so long as the facility poses a
potential environmental risk to human health, wildlife, or the environment, as determined
by the agency following an empirical assessment. The financial assurance and siting
modifications to the rules specified in this paragraph do not apply to:
(1) solid waste facilities initially permitted before January 1, 2011, including future
contiguous expansions and noncontiguous expansions within 600 yards of a permitted
boundary;
(2) solid waste disposal facilities that accept only construction and demolition debris
and incidental nonrecyclable packaging, and facilities that accept only industrial waste
that is limited to wood, concrete, porcelain fixtures, shingles, or window glass resulting
from the manufacture of construction materials; and
(3) requirements for permit by rule solid waste disposal facilities.
(d) Until the rules are modified as provided in paragraph (c) to include site-specific
criteria to prohibit areas from solid waste disposal due to groundwater contamination
sensitivity, as required under this section, the agency shall not issue a permit for a new
solid waste disposal facility, except for:
    (1) the reissuance of a permit for a land disposal facility operating as of March
1, 2008;
    (2) a permit to expand a land disposal facility operating as of March 1, 2008, beyond
its permitted boundaries, including expansion on land that is not contiguous to, but is
located within 600 yards of, the land disposal facility's permitted boundaries;
    (3) a permit to modify the type of waste accepted at a land disposal facility operating
as of March 1, 2008;
    (4) a permit to locate a disposal facility that accepts only construction debris as
defined in section 115A.03, subdivision 7;
    (5) a permit to locate a disposal facility that:
    (i) accepts boiler ash from an electric energy power plant that has wet scrubbed units
or has units that have been converted from wet scrubbed units to dry scrubbed units as
those terms are defined in section 216B.68;
    (ii) is on land that was owned on May 1, 2008, by the utility operating the electric
energy power plant; and
    (iii) is located within three miles of the existing ash disposal facility for the power
plant; or
    (6) a permit to locate a new solid waste disposal facility for ferrous metallic minerals
regulated under Minnesota Rules, chapter 6130, or for nonferrous metallic minerals
regulated under Minnesota Rules, chapter 6132.
    (e) Pursuant and subject to the provisions of chapter 14, and the provisions hereof,
the Pollution Control Agency may adopt, amend and rescind rules and standards having
the force of law relating to any purpose within the provisions of Laws 1971, chapter 727,
for the prevention, abatement, or control of noise pollution. Any such rule or standard
may be of general application throughout the state, or may be limited as to times, places,
circumstances or conditions in order to make due allowances for variations therein.
Without limitation, rules or standards may relate to sources or emissions of noise or noise
pollution, to the quality or composition of noises in the natural environment, or to any
other matter relevant to the prevention, abatement, or control of noise pollution.
    (f) As to any matters subject to this chapter, local units of government may set
emission regulations with respect to stationary sources which are more stringent than
those set by the Pollution Control Agency.
    (g) Pursuant to chapter 14, the Pollution Control Agency may adopt, amend,
and rescind rules and standards having the force of law relating to any purpose within
the provisions of this chapter for generators of hazardous waste, the management,
identification, labeling, classification, storage, collection, treatment, transportation,
processing, and disposal of hazardous waste and the location of hazardous waste facilities.
A rule or standard may be of general application throughout the state or may be limited
as to time, places, circumstances, or conditions. In implementing its hazardous waste
rules, the Pollution Control Agency shall give high priority to providing planning and
technical assistance to hazardous waste generators. The agency shall assist generators in
investigating the availability and feasibility of both interim and long-term hazardous waste
management methods. The methods shall include waste reduction, waste separation,
waste processing, resource recovery, and temporary storage.
    (h) The Pollution Control Agency shall give highest priority in the consideration
of permits to authorize disposal of diseased shade trees by open burning at designated
sites to evidence concerning economic costs of transportation and disposal of diseased
shade trees by alternative methods.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 64. Minnesota Statutes 2008, section 116.07, subdivision 4h, is amended to read:
    Subd. 4h. Financial responsibility rules. (a) The agency shall adopt rules requiring
the operator or owner of a solid waste disposal facility to submit to the agency proof
of the operator's or owner's financial capability to provide reasonable and necessary
response during the operating life of the facility and for 30 years after closure for a mixed
municipal solid waste disposal facility or for a minimum of 20 years after closure, as
determined by agency rules, for any other solid waste disposal facility, and to provide for
the closure of the facility and postclosure care required under agency rules. Proof of
financial responsibility is required of the operator or owner of a facility receiving an
original permit or a permit for expansion after adoption of the rules. Within 180 days of
the effective date of the rules or by July 1, 1987, whichever is later, proof of financial
responsibility is required of an operator or owner of a facility with a remaining capacity of
more than five years or 500,000 cubic yards that is in operation at the time the rules are
adopted. Compliance with the rules and the requirements of paragraph (b) is a condition
of obtaining or retaining a permit to operate the facility.
(b) A municipality, as defined in section 475.51, subdivision 2, including a sanitary
district, that owns or operates a solid waste disposal facility that was in operation on May
15, 1989, may meet its financial responsibility for all or a portion of the contingency
action portion of the reasonable and necessary response costs at the facility by pledging its
full faith and credit to meet its responsibility.
The pledge must be made in accordance with the requirements in chapter 475 for
issuing bonds of the municipality, and the following additional requirements:
(1) The governing body of the municipality shall enact an ordinance that clearly
accepts responsibility for the costs of contingency action at the facility and that reserves,
during the operating life of the facility and for the time period required in paragraph (a)
after closure, a portion of the debt limit of the municipality, as established under section
475.53 or other law, that is equal to the total contingency action costs.
(2) The municipality shall require that all collectors that haul to the facility
implement a plan for reducing solid waste by using volume-based pricing, recycling
incentives, or other means.
(3) When a municipality opts to meet a portion of its financial responsibility by
relying on its authority to issue bonds, it shall also begin setting aside in a dedicated
long-term care trust fund money that will cover a portion of the potential contingency
action costs at the facility, the amount to be determined by the agency for each facility
based on at least the amount of waste deposited in the disposal facility each year, and the
likelihood and potential timing of conditions arising at the facility that will necessitate
response action. The agency may not require a municipality to set aside more than five
percent of the total cost in a single year.
(4) A municipality shall have and consistently maintain an investment grade bond
rating as a condition of using bonding authority to meet financial responsibility under
this section.
(5) The municipality shall file with the commissioner of revenue its consent to have
the amount of its contingency action costs deducted from state aid payments otherwise
due the municipality and paid instead to the remediation fund created in section 116.155,
if the municipality fails to conduct the contingency action at the facility when ordered
by the agency. If the agency notifies the commissioner that the municipality has failed to
conduct contingency action when ordered by the agency, the commissioner shall deduct
the amounts indicated by the agency from the state aids in accordance with the consent
filed with the commissioner.
(6) The municipality shall file with the agency written proof that it has complied
with the requirements of paragraph (b).
(c) The method for proving financial responsibility under paragraph (b) may not be
applied to a new solid waste disposal facility or to expansion of an existing facility, unless
the expansion is a vertical expansion. Vertical expansions of qualifying existing facilities
cannot be permitted for a duration of longer than three years.
(d) The commissioner shall consult with the commissioner of management and
budget for guidance on the forms of financial assurance that are acceptable for private
owners and public owners, and in carrying out a periodic review of the adequacy of
financial assurance for solid waste disposal facilities. Financial assurance rules shall
allow financial mechanisms to public owners of solid waste disposal facilities that are
appropriate to their status as subdivisions of the state.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 65. Minnesota Statutes 2008, section 116D.04, subdivision 2a, is amended to read:
    Subd. 2a. When prepared. Where there is potential for significant environmental
effects resulting from any major governmental action, the action shall be preceded by a
detailed environmental impact statement prepared by the responsible governmental unit.
The environmental impact statement shall be an analytical rather than an encyclopedic
document which describes the proposed action in detail, analyzes its significant
environmental impacts, discusses appropriate alternatives to the proposed action and
their impacts, and explores methods by which adverse environmental impacts of an
action could be mitigated. The environmental impact statement shall also analyze those
economic, employment and sociological effects that cannot be avoided should the action
be implemented. To ensure its use in the decision-making process, the environmental
impact statement shall be prepared as early as practical in the formulation of an action.
No mandatory environmental impact statement may be required for an ethanol plant,
as defined in section 41A.09, subdivision 2a, paragraph (b), that produces less than
125,000,000 gallons of ethanol annually and is located outside of the seven-county
metropolitan area.
(a) The board shall by rule establish categories of actions for which environmental
impact statements and for which environmental assessment worksheets shall be prepared
as well as categories of actions for which no environmental review is required under
this section.
(b) The responsible governmental unit shall promptly publish notice of the
completion of an environmental assessment worksheet in a manner to be determined by
the board and shall provide copies of the environmental assessment worksheet to the board
and its member agencies. Comments on the need for an environmental impact statement
may be submitted to the responsible governmental unit during a 30 day period following
publication of the notice that an environmental assessment worksheet has been completed.
The responsible governmental unit's decision on the need for an environmental impact
statement shall be based on the environmental assessment worksheet and the comments
received during the comment period, and shall be made within 15 days after the close of
the comment period. The board's chair may extend the 15 day period by not more than 15
additional days upon the request of the responsible governmental unit.
(c) An environmental assessment worksheet shall also be prepared for a proposed
action whenever material evidence accompanying a petition by not less than 25
individuals, submitted before the proposed project has received final approval by the
appropriate governmental units, demonstrates that, because of the nature or location of a
proposed action, there may be potential for significant environmental effects. Petitions
requesting the preparation of an environmental assessment worksheet shall be submitted to
the board. The chair of the board shall determine the appropriate responsible governmental
unit and forward the petition to it. A decision on the need for an environmental assessment
worksheet shall be made by the responsible governmental unit within 15 days after the
petition is received by the responsible governmental unit. The board's chair may extend
the 15 day period by not more than 15 additional days upon request of the responsible
governmental unit.
(d) Except in an environmentally sensitive location where Minnesota Rules, part
4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
review under this chapter and rules of the board, if:
(1) the proposed action is:
(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
(ii) an expansion of an existing animal feedlot facility with a total cumulative
capacity of less than 1,000 animal units;
(2) the application for the animal feedlot facility includes a written commitment by
the proposer to design, construct, and operate the facility in full compliance with Pollution
Control Agency feedlot rules; and
(3) the county board holds a public meeting for citizen input at least ten business
days prior to the Pollution Control Agency or county issuing a feedlot permit for the
animal feedlot facility unless another public meeting for citizen input has been held with
regard to the feedlot facility to be permitted. The exemption in this paragraph is in
addition to other exemptions provided under other law and rules of the board.
(e) The board may, prior to final approval of a proposed project, require preparation
of an environmental assessment worksheet by a responsible governmental unit selected
by the board for any action where environmental review under this section has not been
specifically provided for by rule or otherwise initiated.
(f) An early and open process shall be utilized to limit the scope of the environmental
impact statement to a discussion of those impacts, which, because of the nature or location
of the project, have the potential for significant environmental effects. The same process
shall be utilized to determine the form, content and level of detail of the statement as well
as the alternatives which are appropriate for consideration in the statement. In addition,
the permits which will be required for the proposed action shall be identified during the
scoping process. Further, the process shall identify those permits for which information
will be developed concurrently with the environmental impact statement. The board
shall provide in its rules for the expeditious completion of the scoping process. The
determinations reached in the process shall be incorporated into the order requiring the
preparation of an environmental impact statement.
(g) The responsible governmental unit shall, to the extent practicable, avoid
duplication and ensure coordination between state and federal environmental review
and between environmental review and environmental permitting. Whenever practical,
information needed by a governmental unit for making final decisions on permits or
other actions required for a proposed project shall be developed in conjunction with the
preparation of an environmental impact statement.
(h) An environmental impact statement shall be prepared and its adequacy
determined within 280 days after notice of its preparation unless the time is extended by
consent of the parties or by the governor for good cause. The responsible governmental
unit shall determine the adequacy of an environmental impact statement, unless within 60
days after notice is published that an environmental impact statement will be prepared,
the board chooses to determine the adequacy of an environmental impact statement. If an
environmental impact statement is found to be inadequate, the responsible governmental
unit shall have 60 days to prepare an adequate environmental impact statement.

    Sec. 66. Minnesota Statutes 2008, section 116D.04, is amended by adding a
subdivision to read:
    Subd. 14. Customized environmental assessment worksheet forms; electronic
submission. (a) The commissioners of natural resources and the Pollution Control
Agency and the board shall periodically review mandatory environmental assessment
worksheet categories under rules adopted under this section, and other project types that
are frequently subject to environmental review, and develop customized environmental
assessment worksheet forms for the category or project type. The forms must include
specific questions that focus on key environmental issues for the category or project type.
In assessing categories and project types and developing forms, the board shall seek
the input of governmental units that are frequently responsible for the preparation of a
worksheet for the particular category or project type. The commissioners and the board
shall also seek input from the general public on the development of customized forms.
The commissioners and board shall make the customized forms available online.
(b) The commissioners of natural resources and the Pollution Control Agency shall
allow for the electronic submission of environmental assessment worksheets and permits.

    Sec. 67. Minnesota Statutes 2008, section 290.431, is amended to read:
290.431 NONGAME WILDLIFE CHECKOFF.
Every individual who files an income tax return or property tax refund claim form
may designate on their original return that $1 or more shall be added to the tax or deducted
from the refund that would otherwise be payable by or to that individual and paid into an
account to be established for the management of nongame wildlife. The commissioner
of revenue shall, on the income tax return and the property tax refund claim form, notify
filers of their right to designate that a portion of their tax or refund shall be paid into
the nongame wildlife management account. The sum of the amounts so designated to
be paid shall be credited to the nongame wildlife management account for use by the
nongame program of the section of wildlife in the Department of Natural Resources. All
interest earned on money accrued, gifts to the program, contributions to the program, and
reimbursements of expenditures in the nongame wildlife management account shall be
credited to the account by the commissioner of management and budget, except that
gifts or contributions received directly by the commissioner of natural resources and
directed by the contributor for use in specific nongame field projects or geographic
areas shall be handled according to section 84.085, subdivision 1. The commissioner
of natural resources shall submit a work program for each fiscal year and semiannual
progress reports to the Legislative-Citizen Commission on Minnesota Resources in the
form determined by the commission. None of the money provided in this section may be
expended unless the commission has approved the work program.
The state pledges and agrees with all contributors to the nongame wildlife
management account to use the funds contributed solely for the management of nongame
wildlife projects and further agrees that it will not impose additional conditions or
restrictions that will limit or otherwise restrict the ability of the commissioner of natural
resources to use the available funds for the most efficient and effective management of
nongame wildlife. The commissioner may use funds appropriated for nongame wildlife
programs for the purpose of developing, preserving, restoring, and maintaining wintering
habitat for neotropical migrant birds in Latin America and the Caribbean under agreement
or contract with any nonprofit organization dedicated to the construction, maintenance, and
repair of such projects that are acceptable to the governmental agency having jurisdiction
over the land and water affected by the projects. Under this authority, the commissioner
may execute agreements and contracts if the commissioner determines that the use of the
funds will benefit neotropical migrant birds that breed in or migrate through the state.

    Sec. 68. Minnesota Statutes 2008, section 290.432, is amended to read:
290.432 CORPORATE NONGAME WILDLIFE CHECKOFF.
A corporation that files an income tax return may designate on its original return that
$1 or more shall be added to the tax or deducted from the refund that would otherwise be
payable by or to that corporation and paid into the nongame wildlife management account
established by section 290.431 for use by the section of wildlife in the Department of
Natural Resources for its nongame wildlife program. The commissioner of revenue shall,
on the corporate tax return, notify filers of their right to designate that a portion of their
tax return be paid into the nongame wildlife management account for the protection of
endangered natural resources. All interest earned on money accrued, gifts to the program,
contributions to the program, and reimbursements of expenditures in the nongame wildlife
management account shall be credited to the account by the commissioner of management
and budget, except that gifts or contributions received directly by the commissioner of
natural resources and directed by the contributor for use in specific nongame field projects
or geographic areas shall be handled according to section 84.085, subdivision 1. The
commissioner of natural resources shall submit a work program for each fiscal year to
the Legislative-Citizen Commission on Minnesota Resources in the form determined by
the commission. None of the money provided in this section may be spent unless the
commission has approved the work program.
The state pledges and agrees with all corporate contributors to the nongame wildlife
account to use the funds contributed solely for the nongame wildlife program and further
agrees that it will not impose additional conditions or restrictions that will limit or
otherwise restrict the ability of the commissioner of natural resources to use the available
funds for the most efficient and effective management of those programs.

    Sec. 69. Laws 2010, chapter 215, article 3, section 4, subdivision 10, is amended to
read:

Subd. 10.Transfers In
(a) By June 30, 2010, the commissioner of
management and budget shall transfer any
remaining balance, estimated to be $98,000,
from the stream protection and improvement
fund under Minnesota Statutes, section
103G.705, to the general fund. Beginning
in fiscal year 2011, all repayment of loans
made and administrative fees assessed under
Minnesota Statutes, section 103G.705,
estimated to be $195,000 in 2011, must be
transferred to the general fund.
(b) The balance of surcharges on criminal and
traffic offenders, estimated to be $900,000,
and credited to the game and fish fund
under Minnesota Statutes, section 357.021,
subdivision 7
, and collected before June 30,
2010, must be transferred to the general fund.
(c) The appropriation in Laws 2007, First
Special Session chapter 2, article 1, section
8, transferred to the appropriation in Laws
2007, First Special Session chapter 2, article
1, section 5, for cost-share flood programs
in southeastern Minnesota, is reduced by
$335,000 and that amount is canceled to the
general fund.
(d) Before June 30, 2011, the commissioner
of management and budget shall transfer
$1,000,000 from the fleet management
account in the special revenue fund
established under Minnesota Statutes, section
84.0856, to the general fund.

    Sec. 70. SCHOOL TRUST LANDS STUDY.
(a) By July 15, 2010, the commissioner of natural resources shall provide to
the chairs of the house of representatives and the senate committees and divisions
with primary jurisdiction over natural resources finance and education finance and the
Permanent School Fund Advisory Committee information necessary to evaluate the
effectiveness of the commissioner in managing school trust lands to successfully meet the
goals contained in Minnesota Statutes, section 127A.31. The information to be provided
shall include, but is not limited to:
(1) an accurate description of the school trust lands and their land classification;
(2) policies and procedures in place designed to meet the requirements of the
fiduciary responsibility of the commissioner in management of the school trust lands; and
(3) financial information identifying the current revenues from the land
classifications and the potential for future maximization of those revenues.
(b) By January 15, 2011, the commissioner of natural resources shall provide an
analysis to the chairs of the house of representatives and senate committees and divisions
with primary jurisdiction over natural resources finance and education finance and the
Permanent School Fund Advisory Committee on the advantages and disadvantages of
having a funding mechanism for compensating the permanent school fund for private and
public use of school trust lands.

    Sec. 71. COON RAPIDS DAM COMMISSION.
    Subdivision 1. Establishment. (a) The Coon Rapids Dam Commission is
established to perform the duties specified in subdivision 2.
(b) The commission consists of 15 voting members and three nonvoting members
as follows:
(1) two members of the house of representatives, appointed by the speaker of the
house, with one member from the minority caucus;
(2) two members of the senate appointed by the Subcommittee on Committees of the
Committee on Rules and Administration, with one member from the minority caucus;
(3) the commissioner of natural resources or the commissioner's designee;
(4) the commissioner of energy or the commissioner's designee;
(5) two representatives of Three Rivers Park District, appointed by the Three Rivers
Park District Board of Commissioners;
(6) one representative each from the counties of Anoka and Hennepin, appointed
by the respective county boards;
(7) one representative each from the cities of Anoka, Brooklyn Park, Champlin, and
Coon Rapids, appointed by the respective mayors;
(8) one representative from the Metropolitan Council, appointed by the council chair;
(9) one representative of the Mississippi National River and Recreation Area,
appointed by the superintendent of the Mississippi National River and Recreation Area,
who shall serve as a nonvoting member;
(10) one representative of the United States Army Corps of Engineers, appointed
by the commander of the St. Paul District, United States Army Corps of Engineers, who
shall serve as a nonvoting member; and
(11) one representative from the United States Fish and Wildlife Service, appointed
by the regional director of the United States Fish and Wildlife Service, who shall serve
as a nonvoting member.
(c) The commission shall elect a chair from among its members.
(d) Members of the commission shall serve a term of one year and may be
reappointed for any successive number of terms.
(e) The Three Rivers Park District shall provide the commission with office space
and staff and administrative services.
(f) Commission members shall serve without compensation.
    Subd. 2. Duties. The commission shall study options and make recommendations
for the future of the Coon Rapids Dam, including its suitable public uses, governance,
operation, and maintenance and financing of the dam and its operations. The commission
shall consider economic, environmental, ecological, and other pertinent factors. The
commission shall, by March 1, 2011, develop and present to the legislature and the
governor an analysis and recommendations for the Coon Rapids Dam. The commission
shall present its findings to the house of representatives and senate committees and
divisions having jurisdiction over natural resources and energy policy.
    Subd. 3. Expiration. This section expires upon presentation of the commission's
analysis and recommendations according to subdivision 2.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 72. SOLID WASTE FACILITY FINANCIAL ASSURANCE
MECHANISMS; INPUT.
Within six months after the effective date of this section, and before publishing
the rules required for groundwater sensitivity and financial assurance in Minnesota
Statutes, section 116.07, subdivision 4, the Pollution Control Agency shall consult with
experts and interested persons on financial assurance adequacy for solid waste facilities,
including, but not limited to, staff from the Department of Natural Resources, Minnesota
Management and Budget, local governments, private and public landfill operators, and
environmental groups. The commissioner shall seek the input to determine the adequacy
of existing financial assurance rules to address environmental risks, the length of time
financial assurance is needed, based on the threat to human health and the environment,
the reliability of financial assurance in covering risks from land disposal of waste in
Minnesota and other states, and the role of private insurance.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 73. SUBSURFACE SEWAGE TREATMENT SYSTEMS ORDINANCE
ADOPTION DELAY.
(a) Notwithstanding Minnesota Statutes, section 115.55, subdivision 2, a county may
adopt an ordinance by February 4, 2012, to comply with the February 4, 2008, revisions
to subsurface sewage treatment system rules. By April 4, 2011, the Pollution Control
Agency shall adopt the final rule amendments to the February 4, 2008, subsurface sewage
treatment system rules. A county must continue to enforce its current ordinance until a
new one has been adopted.
(b) By January 15, 2011, the agency, after consultation with the Board of Water and
Soil Resources and the Association of Minnesota Counties, shall report to the chairs and
ranking minority members of the senate and house of representatives environment and
natural resources policy and finance committees and divisions on:
(1) the technical changes in the rules for subsurface sewage treatment systems
that were adopted on February 4, 2008;
(2) the progress in local adoption of ordinances to comply with the rules; and
(3) the progress in protecting the state's water resources from pollution due to
subsurface sewage treatment systems.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 74. DEPARTMENT OF NATURAL RESOURCES LONG-RANGE
BUDGET ANALYSIS.
(a) The commissioner of natural resources, in consultation with the commissioner
of management and budget, shall estimate the total amount of funding available from all
sources for each of the following land management categories: wildlife management
areas; state forests; scientific and natural areas; aquatic management areas; public water
access sites; and prairie bank easements. The commissioner of natural resources shall
prepare a ten-year budget analysis of the department's ongoing land management needs,
including restoration of each parcel needing restoration. The analysis shall include:
(1) an analysis of the needs of wildlife management areas, including identification of
internal systemwide guidelines on the proper frequency for activities such as controlled
burns, tree and woody biomass removal, and brushland management;
(2) an analysis of state forest needs, including identification of internal systemwide
guidelines on the proper frequency for forest management activities;
(3) an analysis of scientific and natural area needs, including identification of
internal systemwide guidelines on the proper frequency for management activities;
(4) an analysis of aquatic management area needs, including identification of internal
systemwide guidelines on the proper frequency for management activities; and
(5) an analysis of the needs of the state's public water access sites, including
identification of internal systemwide guidelines on the proper frequency for management
activities.
(b) The commissioner shall compare the estimate of the total amount of funding
available to the department's ongoing management needs to determine:
(1) the amount necessary to manage, restore, and maintain existing wildlife
management areas, state forests, scientific and natural areas, aquatic management areas,
public water access sites, and prairie bank easements; and
(2) the amount necessary to expand upon the existing wildlife management areas,
state forests, scientific and natural areas, aquatic management areas, public water access
sites, and prairie bank easement programs, including the feasibility of the department's
existing long-range plans, if applicable, for each program.
(c) The commissioner of natural resources shall submit the analysis to the chairs of
the house of representatives and senate committees with jurisdiction over environment
and natural resources finance and cultural and outdoor resources finance by November
15, 2010.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 75. WIND ENERGY SYSTEMS ON STATE-OWNED LANDS; REPORT.
By February 15, 2011, the commissioner of natural resources shall report to the
senate and house of representatives environment and natural resource policy and finance
committees and divisions on the use of state-owned lands for wind energy systems. The
report shall include:
(1) information on the benefits and costs of using state-owned lands for wind energy
systems;
(2) the effects of wind energy systems on state-owned lands;
(3) recommendations for a regulatory system and restrictions that will be necessary
to protect the state's land and water resources when using state-owned lands for wind
energy systems; and
(4) identification of state-owned lands that would be suitable for wind energy
systems and state-owned lands that would be unsuitable, including recommendations for
restrictions on the use of state-owned lands based on their designation as units of the
outdoor recreation system under Minnesota Statutes, section 86A.05.

    Sec. 76. APPROPRIATION; DEPARTMENT OF NATURAL RESOURCES
PEACE OFFICER TRAINING.
(a) $145,000 in fiscal year 2011 is appropriated from the game and fish fund to
the commissioner of natural resources for peace officer training for employees of the
Department of Natural Resources who are licensed under Minnesota Statutes, sections
626.84 to 626.863, to enforce game and fish laws. This appropriation is from the money
credited to the game and fish fund under Minnesota Statutes, section 357.021, subdivision
7, paragraph (a), clause (1), from surcharges assessed to criminal and traffic offenders.
This is a onetime appropriation.
(b) By January 15, 2011, the commissioner of natural resources shall submit a report
to the chairs of the committees and divisions with jurisdiction over natural resources and
public safety on the expenditure of these funds, including the effectiveness of the activities
funded in improving the enforcement of game and fish laws and the resulting outcomes
for the state's natural resources.

    Sec. 77. APPROPRIATION; STATE WATER TRAILS.
$60,000 is appropriated in fiscal year 2011 from the water recreation account in the
natural resources fund to the commissioner of natural resources to cooperate with local
units of government in marking state water trails under Minnesota Statutes, section 85.32;
acquiring and developing river accesses and campsites; and removing obstructions that
may cause public safety hazards. This is a onetime appropriation and available until spent.

    Sec. 78. APPROPRIATION; MOOSE TRAIL.
$100,000 in fiscal year 2011 is appropriated to the commissioner of natural resources
from the all-terrain vehicle account in the natural resources fund for a grant to the city of
Hoyt Lakes to convert the Moose Trail snowmobile trail to a dual usage trail, so that it
may also be used as an off-highway vehicle trail connecting the city of Biwabik to the
Iron Range Off-Highway Vehicle Recreation Area. This is a onetime appropriation and
is available until spent.

    Sec. 79. APPROPRIATION; ECOLOGICAL CLASSIFICATION PROGRAM.
$250,000 in fiscal year 2011 is appropriated from the heritage enhancement account
in the game and fish fund to the commissioner of natural resources to maintain and expand
the ecological classification program on state forest lands. This is a onetime appropriation.

    Sec. 80. PARKS AND TRAILS APPROPRIATION; LOTTERY-IN-LIEU
REVENUE.
$300,000 in fiscal year 2011 is appropriated from the natural resources fund to
the commissioner of natural resources for state park, state recreation area, and state
trail operations. This is from the revenue deposited in the natural resources fund under
Minnesota Statutes, section 297A.94, paragraph (e), clause (2).
$300,000 in fiscal year 2011 is appropriated from the natural resources fund to
the Metropolitan Council for metropolitan area regional parks and trails maintenance
and operations. This is from the revenue deposited in the natural resources fund under
Minnesota Statutes, section 297A.94, paragraph (e), clause (3).

    Sec. 81. REFUSE MANAGEMENT PILOT PROJECT; CANNON RIVER.
The commissioner of natural resources shall establish a two-year pilot project on the
Cannon River under a written agreement between the establishment and the commissioner
of natural resources that allows canoe and inner tube rental establishments to take
responsibility for the management of their patrons' refuse on the river, including allowing
canoe and inner tube establishments to provide disposable refuse containers to each group.

    Sec. 82. REVISOR'S INSTRUCTION.
(a) The revisor of statutes shall change the term "horse trail pass" to "horse pass"
wherever it appears in Minnesota Statutes and Minnesota Rules.
(b) The revisor of statutes shall change the term "canoe and boating routes" or
similar term to "state water trails" or similar term wherever it appears in Minnesota
Statutes and Minnesota Rules.
(c) The revisor of statutes shall change the term "Minnesota Conservation Corps" to
"Conservation Corps Minnesota" wherever it appears in Minnesota Statutes.

    Sec. 83. REPEALER.
(a) Minnesota Statutes 2008, sections 90.172; 97B.665, subdivision 1; 103G.295;
and 103G.650, are repealed.
(b) Minnesota Statutes 2009 Supplement, section 88.795, is repealed.

ARTICLE 5
ENERGY

    Section 1. Minnesota Statutes 2008, section 3.8851, subdivision 7, is amended to read:
    Subd. 7. Assessment; appropriation. (a) Upon request by the cochairs of the
commission, the commissioner of commerce shall assess the amount requested for the
operation of the commission, not to exceed $250,000 in a fiscal year, from the following
sources:
    (1) 50 percent of the assessment must come from all public utilities, municipal
utilities, electric cooperative associations, generation and transmission cooperative electric
associations, and municipal power agencies providing electric or natural gas services
in Minnesota; and
    (2) 50 percent of the assessment must come from all bulk terminals located in this
state from which petroleum products and liquid petroleum gas are dispensed for sale in
this state.
    (b) The commissioner of commerce shall apportion the assessment amount requested
among the entities in paragraph (a), clauses clause (1) and (2), in proportion to their
respective gross operating revenues from energy sold within the state during the most
recent calendar year, while ensuring that wholesale and retail sales are not double counted.
(c) The commissioner of commerce shall apportion the assessment amount requested
equally among the referenced entities in paragraph (a), clause (2).
    (c) (d) The entities in paragraph (a), clauses clause (1) and (2), must provide
information to the commissioner of commerce to allow for calculation of the assessment.
    (d) (e) The assessments under this subdivision are in addition to assessments made
under section 216B.62. The amount assessed under this section is must be deposited in
the legislative energy commission account in the special revenue fund. Funds in the
legislative energy commission account are appropriated to the director of the Legislative
Coordinating Commission for the purposes of this section, and is are available until
expended. Utilities selling gas and electric service at retail must be assessed and billed
in accordance with the procedures provided in section 216B.62, to the extent that these
procedures do not conflict with this subdivision.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Minnesota Statutes 2008, section 116C.779, subdivision 1, is amended to read:
    Subdivision 1. Renewable development account. (a) The public utility that owns
the Prairie Island nuclear generating plant must transfer to a renewable development
account $16,000,000 annually $500,000 each year for each dry cask containing spent fuel
that is located at the Prairie Island power plant for each year the plant is in operation, and
$7,500,000 each year the plant is not in operation if ordered by the commission pursuant
to paragraph (d). The fund transfer must be made if nuclear waste is stored in a dry cask at
the independent spent-fuel storage facility at Prairie Island for any part of a year. Funds
in the account may be expended only for development of renewable energy sources.
Preference must be given to development of renewable energy source projects located
within the state. The utility that owns a nuclear generating plant is eligible to apply for
renewable development fund grants. The utility's proposals must be evaluated by the
renewable development fund board in a manner consistent with that used to evaluate other
renewable development fund project proposals.
    (b) The public utility that owns the Monticello nuclear generating plant must transfer
to the renewable development account $350,000 each year for each dry cask containing
spent fuel that is located at the Monticello nuclear power plant for each year the plant is
in operation, and $5,250,000 each year the plant is not in operation if ordered by the
commission pursuant to paragraph (d). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.
     (c) Expenditures from the account may only be made after approval by order of the
Public Utilities Commission upon a petition by the public utility.
     (d) After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
discontinued facility, the commission shall require the public utility to pay $7,500,000 for
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear
fuel stored at the facility to a permanent or interim storage site out of the state. This
determination shall be made at least every two years.
EFFECTIVE DATE.This section is effective when 32 dry casks containing spent
fuel are located at the Prairie Island nuclear plant.

    Sec. 3. [116C.7791] REBATES FOR SOLAR PHOTOVOLTAIC MODULES.
    Subdivision 1. Definitions. For the purpose of this section, the following terms
have the meanings given.
(a) "Installation" means an array of solar photovoltaic modules attached to a building
that will use the electricity generated by the solar photovoltaic modules or placed on a
facility or property proximate to that building.
(b) "Manufactured" means:
(1) the material production of solar photovoltaic modules, including the tabbing,
stringing, and lamination processes; or
(2) the production of interconnections of low-voltage photoactive elements that
produce the final useful photovoltaic output by a manufacturer operating in this state on
the effective date of this section.
(c) "Qualified owner" means an owner of a qualified property, but does not include
an entity engaged in the business of generating or selling electricity at retail, or an
unregulated subsidiary of such an entity.
(d) "Qualified property" means a residence, multifamily residence, business, or
publicly owned building located in the assigned service area of the utility subject to
section 116C.779.
(e) "Solar photovoltaic module" means the smallest, nondivisible, self-contained
physical structure housing interconnected photovoltaic cells and providing a single direct
current of electrical output.
    Subd. 2. Establishment. The utility subject to section 116C.779 shall establish
a program to provide rebates to an owner of a qualified property for installing solar
photovoltaic modules manufactured in Minnesota after December 31, 2009. Any solar
photovoltaic modules installed under this program and any expenses incurred by the
utility operating the program shall be treated the same as solar installations and related
expenses under section 216B.241.
    Subd. 3. Rebate eligibility. (a) To be eligible for a rebate under this section, a
solar photovoltaic module:
(1) must be manufactured in Minnesota;
(2) must be installed on a qualified property as part of a system whose generating
capacity does not exceed 40 kilowatts;
(3) must be certified by Underwriters Laboratory, must have received the ETL
listed mark from Intertek, or must have an equivalent certification from an independent
testing agency;
(4) may or may not be connected to a utility grid;
(5) must be installed, or reviewed and approved, by a person certified as a solar
photovoltaic installer by the North American Board of Certified Energy Practitioners; and
(6) may not be used to sell, transmit, or distribute the electrical energy at retail,
nor to provide end-use electricity to an offsite facility of the electrical energy generator.
On-site generation is allowed to the extent provided for in section 216B.1611.
(b) To be eligible for a rebate under this section, an applicant must have applied for
and been awarded a rebate or other form of financial assistance available exclusively to
owners of properties on which solar photovoltaic modules are installed that is offered by:
(1) the utility serving the property on which the solar photovoltaic modules are to
be installed; or
(2) this state, under an authority other than this section.
(c) An applicant who is otherwise ineligible for a rebate under paragraph (b) is
eligible if the applicant's failure to secure a rebate or other form of financial assistance is
due solely to a lack of available funds on the part of a utility or this state.
    Subd. 4. Rebate amount and payment. (a) The amount of a rebate under this
section is the difference between the sum of all rebates described in subdivision 3,
paragraph (b), awarded to the applicant and $5 per watt of installed generating capacity.
(b) Notwithstanding paragraph (a), the amount of all rebates or other forms of
financial assistance awarded to an applicant by a utility and the state, including any rebate
paid under this section, net of applicable federal income taxes applied at the highest
applicable income tax rates, must not exceed 60 percent of the total installed cost of
the solar photovoltaic modules.
(c) Rebates must be awarded to eligible applicants beginning July 1, 2010.
(d) The rebate must be paid out proportionately in five consecutive annual
installments.
    Subd. 5. Rebate program funding. (a) The following amounts must be allocated
from the renewable development account established in section 116C.779 to a separate
account for the purpose of providing the rebates for solar photovoltaic modules specified
in this section:
(1) $2,000,000 in fiscal year 2011;
(2) $4,000,000 in fiscal year 2012;
(3) $5,000,000 in fiscal year 2013;
(4) $5,000,000 in fiscal year 2014; and
(5) $5,000,000 in fiscal year 2015.
(b) If, by the end of fiscal year 2015, insufficient qualified owners have applied for
and met the requirements for rebates under this section to exhaust the funds available, any
remaining balance shall be returned to the account established under section 116C.779.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2008, section 116J.437, subdivision 1, is amended to read:
    Subdivision 1. Definitions. (a) For the purpose of this section, the following terms
have the meanings given.
(b) "Green economy" means products, processes, methods, technologies, or services
intended to do one or more of the following:
    (1) increase the use of energy from renewable sources, including through achieving
the renewable energy standard established in section 216B.1691;
    (2) achieve the statewide energy-savings goal established in section 216B.2401,
including energy savings achieved by the conservation investment program under section
216B.241;
    (3) achieve the greenhouse gas emission reduction goals of section 216H.02,
subdivision 1, including through reduction of greenhouse gas emissions, as defined in
section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through,
but not limited to, carbon capture, storage, or sequestration;
    (4) monitor, protect, restore, and preserve the quality of surface waters, including
actions to further the purposes of the Clean Water Legacy Act as provided in section
114D.10, subdivision 1; or
    (5) expand the use of biofuels, including by expanding the feasibility or reducing the
cost of producing biofuels or the types of equipment, machinery, and vehicles that can
use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections
41A.10, subdivision 2, and 41A.11; or
(6) increase the use of green chemistry, as defined in section 116.9401.
For the purpose of clause (3), "green economy" includes strategies that reduce carbon
emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass
transit or otherwise reducing commuting for employees.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. Minnesota Statutes 2008, section 216B.16, subdivision 14, is amended to read:
    Subd. 14. Low-income electric rate discount. A public utility shall fund an
affordability program for low-income customers in an amount based on a 50 percent
electric rate discount on the first 300 400 kilowatt-hours consumed in a billing period for
low-income residential customers of the utility. For the purposes of this subdivision,
"low-income" describes a customer who is receiving assistance from the federal
low-income home energy assistance program. The affordability program must be designed
to target participating customers with the lowest incomes and highest energy costs in order
to lower the percentage of income they devote to energy bills, increase their payments,
and lower costs associated with collection activities on their accounts. For low-income
customers who are 62 years of age or older or disabled, the program must, in addition to
any other program benefits, include a 50 percent electric rate discount on the first 300 400
kilowatt-hours consumed in a billing period. For the purposes of this subdivision, "public
utility" includes only those public utilities with more than 200,000 residential electric
service customers. The commission may issue orders necessary to implement, administer,
and recover the costs of the program on a timely basis.

    Sec. 6. Minnesota Statutes 2008, section 216B.16, subdivision 15, is amended to read:
    Subd. 15. Low-income affordability programs. (a) The commission must
consider ability to pay as a factor in setting utility rates and may establish affordability
programs for low-income residential ratepayers in order to ensure affordable, reliable,
and continuous service to low-income utility customers. Affordability programs may
include inverted block rates in which lower energy prices are made available to lower
usage customers. By September 1, 2007, a public utility serving low-income residential
ratepayers who use natural gas for heating must file an affordability program with the
commission. For purposes of this subdivision, "low-income residential ratepayers" means
ratepayers who receive energy assistance from the low-income home energy assistance
program (LIHEAP).
    (b) Any affordability program the commission orders a utility to implement must:
    (1) lower the percentage of income that participating low-income households devote
to energy bills;
    (2) increase participating customer payments over time by increasing the frequency
of payments;
    (3) decrease or eliminate participating customer arrears;
    (4) lower the utility costs associated with customer account collection activities; and
    (5) coordinate the program with other available low-income bill payment assistance
and conservation resources.
    (c) In ordering affordability programs, the commission may require public utilities to
file program evaluations that measure the effect of the affordability program on:
    (1) the percentage of income that participating households devote to energy bills;
    (2) service disconnections; and
    (3) frequency of customer payments, utility collection costs, arrearages, and bad
debt.
    (d) The commission must issue orders necessary to implement, administer, and
evaluate affordability programs, and to allow a utility to recover program costs, including
administrative costs, on a timely basis. The commission may not allow a utility to recover
administrative costs, excluding start-up costs, in excess of five percent of total program
costs, or program evaluation costs in excess of two percent of total program costs. The
commission must permit deferred accounting, with carrying costs, for recovery of program
costs incurred during the period between general rate cases.
    (e) Public utilities may use information collected or created for the purpose of
administering energy assistance to administer affordability programs.

    Sec. 7. [216B.1695] ENVIRONMENTAL PROJECTS; ADVANCE
DETERMINATION OF PRUDENCE.
    Subdivision 1. Qualifying project. A public utility may petition the commission for
an advance determination of prudence for a project undertaken to comply with federal
or state air quality standards of states in which the utility's electric generation facilities
are located, if the project has an expected jurisdictional cost to Minnesota ratepayers of
at least $10,000,000. A project is undertaken to comply with federal or state air quality
standards if it is required:
(1) by the state in which the generation facility is located in a state implementation
plan, permit, or order; or
(2) to comply with section 111 or 112 of the federal Clean Air Act, United States
Code, title 42, section 7411 or 7412.
    Subd. 2. Regulatory cost assessments and reports. A utility requesting an
advance determination under subdivision 1 must, as part of the evidence required when
filing a petition under subdivision 3, provide to the Public Utilities Commission and the
Pollution Control Agency an assessment of all anticipated state and federal environmental
regulations related to the production of electricity from the utility's facility subject to
the filing, including regulations relating to:
(1) air pollution by nitrogen oxide and sulphur dioxide, including an assumption that
Minnesota will be included in the federal Clean Air Interstate Rule region, hazardous air
pollutants, carbon dioxide, particulates, and ozone;
(2) coal waste; and
(3) water consumption and water pollution.
In addition, the utility shall provide an assessment of the financial and operational
impacts of these pending regulations applicable to the generating facility that is the
subject of the filing and provide a range of regulatory response scenarios that include, but
are not limited to:
(1) the installation of pollution control equipment;
(2) the benefits of the retirement or repowering of the plant that is the subject of
the filing with cleaner fuels considering the costs of complying with state and federal
environmental regulations; and
(3) the use of pollution allowances to achieve compliance.
The utility shall consult with interested stakeholders in establishing the scope of the
regulatory, financial, and operational assessments prior to or during the 60-day period of
the notice under subdivision 4.
    Subd. 3. Petition. A petition filed under this section must include a description of
the project, evidence supporting the project's reasonableness, a discussion of project
alternatives, a project implementation schedule, a cost estimate and support for the
reasonableness of the estimated cost, and a description of the public utility's efforts to
ensure the lowest reasonable costs. Following receipt of the Pollution Control Agency's
verification under subdivision 4, the commission shall allow opportunity for oral and
written comment on the petition. The commission shall make a final determination on
the petition within ten months of its filing date. The commission must make findings
in support of its determination.
    Subd. 4. Verification. At least 60 days prior to filing a petition to the commission
under subdivision 3, the utility shall file notice with the Pollution Control Agency that
describes the project and how it qualifies under subdivision 1. The Pollution Control
Agency shall, within 60 days of receipt of the notice, verify that the project qualifies under
subdivision 1, and shall forward written verification to the commission.
    Subd. 5. Cost recovery. The utility may begin recovery of costs that have been
incurred by the utility in connection with implementation of the project in the next rate
case following an advance determination of prudence. The commission shall review the
costs incurred by the utility for the project. The utility must show that the project costs
are reasonable and necessary, and demonstrate its efforts to ensure the lowest reasonable
project costs. Notwithstanding the commission's prior determination of prudence, it may
accept, modify, or reject any of the project costs. The commission may determine whether
to require an allowance for funds used during construction offset.
    Subd. 6. Expiration. A petition for an advance determination of prudence may not
be filed after December 31, 2015.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2008, section 216B.2401, is amended to read:
216B.2401 ENERGY CONSERVATION POLICY GOAL.
    It is the energy policy of the state of Minnesota to achieve annual energy savings
equal to 1.5 percent of annual retail energy sales of electricity and natural gas directly
through energy conservation improvement programs and rate design, such as inverted
block rates in which lower energy prices are made available to lower usage residential
customers, and indirectly through energy codes and appliance standards, programs
designed to transform the market or change consumer behavior, energy savings resulting
from efficiency improvements to the utility infrastructure and system, and other efforts to
promote energy efficiency and energy conservation.

    Sec. 9. Minnesota Statutes 2008, section 216B.62, is amended by adding a subdivision
to read:
    Subd. 3a. Supplemental staffing assessment. In addition to other assessments in
subdivision 3, the commission may assess up to $800,000 per year for supplemental
staffing to implement requirements of this chapter. The amount in this subdivision shall
be assessed to the several public utilities in proportion to their respective gross operating
revenues from retail sales of gas or electric service within the state during the last calendar
year, shall be deposited into an account in the special revenue fund, and appropriated to
the commission. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. * (The preceding text ", and
appropriated to the commission" was indicated as vetoed by the governor.)

    Sec. 10. Minnesota Statutes 2008, section 326B.106, subdivision 12, is amended to
read:
    Subd. 12. Separate metering for electric service. The standards concerning heat
loss, illumination, and climate control adopted pursuant to subdivision 1, shall require
that electrical service to individual dwelling units in buildings containing two or more
units be separately metered, with individual metering readily accessible to the individual
occupants. The standards authorized by this subdivision shall only apply to buildings
constructed after the effective date of the amended standards. Buildings intended for
occupancy primarily by persons who are 62 years of age or older or disabled, supportive
housing, or which buildings that contain a majority of units not equipped with complete
kitchen facilities, shall be exempt from the provisions of this subdivision. For purposes
of this section, "supportive housing" means housing made available to individuals and
families with multiple barriers to obtaining and maintaining housing, including those who
are formerly homeless or at risk of homelessness and those who have a mental illness,
substance abuse disorder, debilitating disease, or a combination of these conditions.

    Sec. 11. [383B.1588] ENERGY FORWARD PRICING MECHANISMS.
    Subdivision 1. Definitions. The following definitions apply in this section.
(a) "Energy" means natural gas, heating oil, diesel fuel, unleaded fuel, or any other
energy source, except electric, used in Hennepin County operations.
(b) "Forward pricing mechanism" means either:
(1) a contract or financial instrument that obligates Hennepin County to buy or sell a
specified amount of an energy commodity at a future date and at a set price; or
(2) an option to buy or sell the contract or financial instrument.
    Subd. 2. Authority provided. Notwithstanding any other law to the contrary,
the Hennepin County Board of Commissioners may use forward pricing mechanisms
for budget risk reduction.
    Subd. 3. Conditions. (a) Forward pricing transactions made under this section must
be made only under the conditions in this subdivision.
(b) The amount of energy forward priced must not exceed the estimated energy
usage for Hennepin County operations for the period of time covered by the forward
pricing mechanism.
(c) The holding period and expiration date for any forward pricing mechanism must
not exceed 24 months from the trade date of the transaction.
(d) Separate accounts must be established for each operational energy for which
forward pricing mechanisms are used under this section.
    Subd. 4. Written policies and procedures. Before exercising authority under
subdivision 2, the Hennepin County Board of Commissioners must have written policies
and procedures governing the use of forward pricing mechanisms.
    Subd. 5. Oversight process. (a) Before exercising authority under subdivision 2,
the Hennepin County Board of Commissioners must establish an oversight process that
provides for review of the county's used of forward pricing mechanisms.
(b) The process must include:
(1) internal or external audit reviews;
(2) annual reports to, and review by, an internal investment committee; and
(3) internal management control.
EFFECTIVE DATE.This section is effective without local approval the day
following final enactment as provided under Minnesota Statutes, section 645.023,
subdivision 1, paragraph (a).

    Sec. 12. [383B.82] WIND AND SOLAR BUSINESS ENTITY PARTICIPATION.
To exercise the authority granted to counties under section 373.48, Hennepin County
may be a limited partner in a partnership, a member of a limited liability company, or a
shareholder in a corporation established for the purpose of constructing, acquiring, owning
in whole or in part, financing, or operating a facility that generates electricity from wind
or solar energy. Liability for Hennepin County is governed by section 466.04. Section
466.04 also governs liability for a limited liability company or a corporation, either of
which is wholly owned by Hennepin County and formed under this section.

    Sec. 13. Laws 1981, chapter 222, section 1, is amended to read:
    Section 1. MINNEAPOLIS AND ST. PAUL; RESIDENTIAL, COMMERCIAL,
AND INDUSTRIAL ENERGY CONSERVATION PROGRAM; PURPOSE.
The legislature finds and declares that the state faces potential serious shortages in
energy resources and that implementing energy conservation measures requires expanded
authority and technical capability in order to minimize the use of traditional energy
sources in the housing sector, commercial, and industrial sectors; that accomplishing
energy conservation is a public purpose; and that it is in the public interest to authorize
the city of Minneapolis and the city of St. Paul to provide existing single family, existing
multifamily and existing rental housing residential, commercial, and industrial property
loans for energy improvements.
EFFECTIVE DATE.This section is effective the day following final enactment for
each of the cities of Minneapolis and St. Paul without local approval under Minnesota
Statutes, section 645.023, subdivision 1, paragraph (a).

    Sec. 14. Laws 1981, chapter 222, section 2, is amended to read:
    Sec. 2. RESIDENTIAL ENERGY CONSERVATION PROGRAM.
Notwithstanding any provision of law or charter to the contrary the city of
Minneapolis and the city of St. Paul, individually or jointly are authorized to develop and
administer a program or programs for the making or purchasing of energy improvement or
energy rehabilitation loans with respect to housing residential, commercial, and industrial
properties located anywhere within their respective boundaries on such terms and
conditions as set forth in this act and an ordinance which shall be adopted by the governing
body or bodies of the municipality or municipalities establishing the program. At least 75
percent of the proceeds of each energy improvement or energy rehabilitation loan shall
be used for housing property repairs and, improvements, and equipment (1) which the
city determines are (a) used or useful to conserve energy or (b) to convert or retrofit
an existing structure for the purpose of using an energy source which does not depend
on nuclear or nonrenewable petroleum based resources, and (2) which, when installed
or completed, will with respect to each housing unit directly result in a cost effective
reduction of energy use from nuclear or nonrenewable petroleum based resources. The
ordinance establishing the program shall establish the manner of determining whether the
housing repairs and, improvements, and equipment will directly result in the required cost
effective reduction of energy use. Loans may be made without regard to income level
of the loan recipient, shall bear interest at a rate or rates as are established by the city or
cities, shall be for a term of not to exceed 20 years, and may be secured by a mortgage
or other security interest. The powers granted to each city by sections 1 to 5 of this act
are supplemental and in addition to those granted by Minnesota Statutes, Chapter 462C,
Chapter 469, and any other law or charter.
EFFECTIVE DATE.This section is effective the day following final enactment for
each of the cities of Minneapolis and St. Paul without local approval under Minnesota
Statutes, section 645.023, subdivision 1, paragraph (a).

    Sec. 15. Laws 1981, chapter 222, section 3, is amended to read:
    Sec. 3. LIMITATIONS.
A program may be established pursuant to this act only after the city establishing the
program determines that:
(1) There is a continued need to reduce consumption of energy from nonrenewable
petroleum based resources.
(2) There are housing units properties within the jurisdiction of the city which are in
need of energy improvements and energy rehabilitation.
(3) Private sources of financing are not reasonably available to provide the needed
loans for energy improvements and energy rehabilitation.
(4) The types of energy improvements and energy rehabilitation will reduce the
consumption of energy from nonrenewable petroleum based resources or from nuclear
sources.
Findings made by the city pursuant to this section shall be conclusive and final.
EFFECTIVE DATE.This section is effective the day following final enactment for
each of the cities of Minneapolis and St. Paul without local approval under Minnesota
Statutes, section 645.023, subdivision 1, paragraph (a).

    Sec. 16. Laws 1981, chapter 222, section 4, subdivision 2, is amended to read:
    Subd. 2. Bonding and financial authority. Notwithstanding the provisions of any
other law, general or special to the contrary, and in addition to the authority contained in
any other law, the city of Minneapolis and the city of St. Paul individually or jointly may
exercise any and all of the same powers in relation to the making or purchasing of loans
or other securities and in the issuing of revenue bonds or obligations in furtherance of
the programs authorized by sections 1 to 5 as the Minnesota housing finance agency is
authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A, without
regard to any of the limitations set forth in Minnesota Statutes, Chapters 462C or 475.
The revenue bonds or obligations shall be payable from revenues from the program and
other city housing programs. The revenue bonds or obligations may be payable from
other sources of city revenue which are derived from federal sources other than general
revenue sharing, or private grant sources. The city shall not levy or pledge to levy any
ad valorem tax upon real property for the purpose of paying principal of or interest on
revenue bonds or obligations.
EFFECTIVE DATE.This section is effective the day following final enactment for
each of the cities of Minneapolis and St. Paul without local approval under Minnesota
Statutes, section 645.023, subdivision 1, paragraph (a).

    Sec. 17. Laws 2009, chapter 37, article 2, section 13, is amended to read:
    Sec. 13. APPROPRIATIONS; CANCELLATIONS.
(a) The remaining balance of the fiscal year 2009 special revenue fund appropriation
for the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3,
subdivision 4, is transferred and appropriated to the commissioner of employment and
economic development for the purposes of green enterprise assistance under Minnesota
Statutes, section 116J.438. This appropriation is available until spent.
(b) The unencumbered balance of the fiscal year 2008 appropriation to the
commissioner of commerce for the rural and energy development revolving loan
fund under Laws 2007, chapter 57, article 2, section 3, subdivision 6, is canceled and
reappropriated to the commissioner of commerce as follows:
(1) $1,500,000 is for a grant to the Board of Trustees of the Minnesota State Colleges
and Universities for the International Renewable Energy Technology Institute (IRETI) to
be located at Minnesota State University, Mankato, as a public and private partnership to
support applied research in renewable energy and energy efficiency to aid in the transfer of
technology from Sweden to Minnesota and to support technology commercialization from
companies located in Minnesota and throughout the world; and
(2) the remaining balance is for a grant to the Board of Regents of the University of
Minnesota for the initiative for renewable energy and the environment to fund start up
costs related to a national solar testing and certification laboratory to test, rate, and certify
the performance of equipment and devices that utilize solar energy for heating and cooling
air and water and for generating electricity.
This appropriation is available until expended.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 18. Laws 2009, chapter 138, article 2, section 4, is amended to read:
    Sec. 4. SMALL CITY ENERGY EFFICIENCY GRANT.
    Subdivision 1. Program. The commissioner shall make a grant for an innovative
residential and commercial energy efficiency program in a small rural city with a
population under 4,000 located in the service area of Minnesota Power that is currently
working with that utility, the county housing and redevelopment authority, and other
state and local housing organizations to enhance energy efficiency for residents and
businesses. Stimulus funds must be matched $1 for every $4 of stimulus funds granted
under this section and are available to the extent of the match. The program must include
the following elements:
(1) provision of basic residential and commercial energy conservation measures;
(2) provision of more comprehensive residential and commercial energy
conservation measures, including extensive retrofits and appliance upgrades; and
(3) a plan to establish a revolving loan fund so that the program is sustainable over
time; and
(4) innovative financing options allowing residents and businesses to finance energy
efficiency improvements, at least in part, with energy savings.
    Subd. 2. Report. By January 15, 2010, and October 30, 2010, the city must submit
a report measuring and assessing the program's effectiveness and energy savings to the
commissioner and the chairs and ranking minority members of the senate and house of
representatives committees with primary jurisdiction over energy policy and finance.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 19. URBAN TRANSMISSION LINE; CERTIFICATE OF NEED
REQUIRED.
(a) A high-voltage transmission line longer than one mile with a capacity of 100
kilovolts or more that is located in a city of the first class in a zone within one mile of the
transmission line in which population density exceeds 8,000 persons per square mile, and
that runs parallel to and is within one-half mile of a below-grade bike and walking path
that connects with other bike paths along a river, is subject to the provisions of Minnesota
Statutes, section 216B.243.
    (b) This section expires December 31, 2014.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies only to high-voltage transmission lines described in this section that are the
subject of an application for a route permit under Minnesota Statutes, chapter 216E, that is
pending before the Public Utilities Commission on March 15, 2010.

    Sec. 20. NEIGHBORHOOD ENERGY REDUCTION REPORT.
    Subdivision 1. Report. (a) By February 15, 2011, an organization with experience
in energy conservation and energy planning at the neighborhood level that serves as
project manager must submit a report to the chairs and ranking minority members of the
senate and house of representatives committees with primary jurisdiction over energy
policy that contains the following information:
(1) projections of the amount of energy that can be conserved and generated through
the implementation of cost-effective energy efficiency investments; innovative energy
storage projects, including thermal energy storage; smart-grid technologies; and energy
produced from distributed generation projects fueled by solar photovoltaic and other
renewable energy sources located in the focused study area designated in the application
to the Minnesota Public Utilities Commission for a route permit for the high-voltage
transmission line identified in section 19;
(2) for each energy-reducing or energy-generating element recommended,
estimates of the amount of energy conserved or generated, the reduction in peak demand
requirements in the focused study area, and the cost per unit of energy saved or generated;
and
(3) an estimate of the number of green jobs that would be created through
implementation of the report's recommendations.
(b) Requests by the project manager for information from the utility serving the
focused study area may be made after the service of notice of and order for hearing made
under Minnesota Statutes, section 216B.243, for the project described in section 19.
Information requests with respect to the study are governed by the rules for contested case
hearings in Minnesota Rules, part 1400.6700.
(c) The project manager may contract for portions of the work required to complete
the report.
    Subd. 2. Community steering committee. (a) The project manager shall convene
a community steering committee to provide input to the report. Appointments to the
steering committee must reflect the diversity of the focused study area, and include
representatives of focused study area residents, including homeowners, building owners
and renters, businesses, churches, other institutions, including the Midtown Community
Works Partnership, local hospitals, and local elected officials representing the focused
study area. All meetings held by the community steering committee or any subcommittees
it creates must be public meetings, with advance notice given to the public.
(b) The project manager shall seek to maximize the participation of focused study
area residents, stakeholders, and institutions in recommending ideas to be included within
the scope of the report and in reviewing initial and successive drafts of the report, including
providing stipends for reasonable expenses when necessary to increase participation, but
not including per diem payments. The project manager shall contact representatives of
similar successful projects in other states to benefit from their experience and to learn
about best practices for increasing public participation that can be replicated in Minnesota.
The report must incorporate and respond to comments from the focused study area and
the steering committee.
    Subd. 3. Energy savings. The utility that serves the focused study area may apply
energy savings resulting directly from the implementation of recommendations contained
in the report regarding energy efficiency investments to its energy-savings goal under
Minnesota Statutes, section 216B.241, subdivision 1c.
    Subd. 4. Certificate of need process. No contested case evidentiary hearings for
a certificate of need for the transmission line identified in section 19 may commence
before April 1, 2011.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 21. APPROPRIATION AND TRANSFER.
(a) The utility subject to Minnesota Statutes, section 116C.779, shall transfer
$90,000 from the renewable development account established under that section to the
commissioner of commerce, who shall deposit it in the special revenue fund.
(b) $90,000 from the money deposited in the special revenue fund under paragraph
(a) is appropriated to the commissioner of commerce for transfer to the city of Minneapolis
for a grant to an organization with experience in energy conservation and energy planning
at the neighborhood level that is selected by the city, in consultation with the Midtown
Greenway Coalition and representatives of the neighborhoods in which the high-voltage
transmission line described in section 19 is proposed to be located, and after project
proposals have been reviewed, to serve as project manager for the purpose of completing
the report required under section 20.
This is a onetime appropriation and is available until expended. * (The preceding
text beginning "(b) $90,000 from the money deposited" was indicated as vetoed
by the governor.)

    Sec. 22. REPEALER.
Laws 1981, chapter 222, section 7, is repealed.
Presented to the governor May 13, 2010
Signed by the governor May 17, 2010, 11:19 a.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569