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                            CHAPTER 437-S.F.No. 1956 
                  An act relating to the environment; providing for an 
                  environmental permitting project; providing penalties; 
                  amending Minnesota Statutes 1994, sections 115.03, 
                  subdivisions 1 and 2; 115.04; 115.071, subdivisions 1, 
                  2, 3, 4, and 5; 115.072; 115.075; 115.076, subdivision 
                  1; 116.07, subdivision 9; and 116.091, subdivisions 1 
                  and 3; Minnesota Statutes 1995 Supplement, section 
                  116.072, subdivision 1; proposing coding for new law 
                  as Minnesota Statutes, chapter 114C. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                    ENVIRONMENTAL REGULATORY INNOVATIONS ACT
           Section 1.  [114C.01] [POLICY.] 
           The legislature recognizes that Minnesota's existing 
        environmental laws play a critical role in protecting the 
        environment.  However, the legislature finds that environmental 
        protection could be further enhanced by authorizing innovative 
        advances in environmental regulatory methods.  It is the policy 
        of the legislature that Minnesota should develop environmental 
        regulatory methods that: 
           (1) encourage facility owners and operators to assess the 
        pollution they emit or cause, directly and indirectly, to the 
        air, water, and land; 
           (2) encourage facility owners and operators to innovate, 
        set measurable and verifiable goals, and implement the most 
        effective pollution prevention, source reduction, or other 
        pollution reduction strategies for their particular facilities, 
        while complying with verifiable and enforceable pollution 
        limits; 
           (3) encourage superior environmental performance and 
        continuous improvement toward sustainable levels of resource 
        usage and minimization of pollution discharges; 
           (4) reward facility owners and operators that reduce 
        pollution to levels below what is required by applicable law; 
           (5) consolidate into one permit environmental requirements 
        that are currently included in different permits, sometimes 
        issued by different state or local agencies; 
           (6) reduce the time and money spent by agencies and 
        facility owners and operators on paperwork and other 
        administrative tasks that do not benefit the environment; 
           (7) increase public participation and encourage stakeholder 
        consensus in the development of innovative environmental 
        regulatory methods and in monitoring the environmental 
        performance of projects under this chapter; 
           (8) encourage groups of facilities and communities to work 
        together to reduce pollution to levels below what is required by 
        applicable law; 
           (9) provide reasonable technical assistance to facilitate 
        meaningful stakeholder participation; and 
           (10) increase levels of trust and communication among 
        agencies, regulated parties, and the public. 
           Sec. 2.  [114C.02] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
        the definitions in this section have the meanings given them. 
           Subd. 2.  [POLLUTION PREVENTION.] "Pollution prevention" 
        has the meaning given in section 115D.03. 
           Subd. 3.  [SOURCE REDUCTION.] "Source reduction" has the 
        meaning given in section 115A.03. 
           Subd. 4.  [STAKEHOLDERS.] "Stakeholders" means citizens in 
        the communities near the project site, facility workers, 
        government representatives, business groups, educational groups, 
        environmental groups, or other Minnesota citizens or public 
        interest groups. 
           Subd. 5.  [STATE OR LOCAL AGENCY.] "State or local agency" 
        means any agency, department, board, bureau, office or other 
        instrumentality of the state, any political subdivision of the 
        state, any public corporation, any municipality, and any other 
        local unit of government. 
                                 PERMIT PROJECT
           Sec. 3.  [114C.10] [ESTABLISHMENT OF MINNESOTA XL PERMIT 
        PROJECT.] 
           Subdivision 1.  [PROJECT.] The pollution control agency is 
        authorized to establish and implement a permit project under 
        sections 114C.10 to 114C.14.  The purpose of the project is to 
        work toward the policy goals listed in section 114C.01 by 
        issuing and studying the effect of permits that require 
        permittees to reduce overall levels of pollution below what is 
        required by applicable law, but which grant greater operational 
        flexibility than current law would otherwise allow.  Permits 
        issued under this project shall be called Minnesota XL permits. 
           Subd. 2.  [REPORT TO LEGISLATURE.] By January 15, 1998, the 
        commissioner of the pollution control agency shall report to the 
        legislature on implementation of the project, the environmental 
        results of the project, and recommendations for future 
        legislation to further the policy of this chapter. 
           Sec. 4.  [114C.11] [MINNESOTA XL PERMITS.] 
           Subdivision 1.  [PARTICIPATION IN PROJECT.] (a) The 
        commissioner of the pollution control agency may solicit 
        requests for participation and shall select the participants in 
        the project based on the policy set forth in section 114C.01 and 
        to satisfy the criteria of subdivisions 2 and 3.  In addition, 
        the commissioner shall select participants that collectively 
        represent a variety of facility types and projects that are 
        expected to reduce air, water, and land pollution.  A power 
        generation facility may not be selected to participate in the 
        project or be issued a Minnesota XL permit unless its proposal 
        includes a plan for significantly reducing mercury emissions. 
           (b) The prospective permittees must be regulated by the 
        agency under chapter 115, chapter 116, or both, and voluntarily 
        submit a proposal for a Minnesota XL permit.  The proposal must 
        address the major pollution impact from the facility or 
        facilities included in the proposal. 
           (c) If, in the course of preparing a Minnesota XL permit 
        for a prospective permittee, the commissioner concludes that the 
        Minnesota XL permit will not sufficiently promote the policy of 
        section 114C.01 or meet the issuance criteria in this section, 
        the commissioner may remove the prospective permittee from the 
        project.  In that event, the commissioner shall provide the 
        prospective permittee with a reasonable amount of time to obtain 
        alternative permits made necessary by removal from the project. 
           Subd. 2.  [MINIMUM CRITERIA FOR MINNESOTA XL PERMIT 
        ISSUANCE.] The pollution control agency may issue and amend a 
        Minnesota XL permit if the agency finds that the following 
        minimum criteria are met: 
           (1) the permit will facilitate pollution prevention and 
        source reduction activities by the facility and result in 
        significantly lower overall levels of pollution from the 
        facility, its customers, or suppliers than would otherwise be 
        required by applicable laws, without:  (i) increasing the 
        negative impact on the environment, the local community, or 
        worker health and safety; or (ii) transferring pollution impacts 
        into the product; 
           (2) the pollution prevention, source reduction, or other 
        pollution reduction goals are verifiable; 
           (3) the pollution limits contained in the permit are 
        verifiable and enforceable; 
           (4) the stakeholder group has been involved through a 
        decision-making process that seeks consensus in the design of 
        the permit and will have the opportunity for continued 
        involvement in the implementation and evaluation of it; 
           (5) the permittee agrees to make available information that 
        it gives the agency about the XL project, except information 
        that is nonpublic under chapter 13 or confidential under section 
        116.075, to the stakeholder group in a format that is easily 
        understood; 
           (6) the permittee agrees to provide an assessment of the 
        success of the project in reducing the time and money spent at 
        the facility on paperwork and other administrative tasks that do 
        not directly benefit the environment; 
           (7) the permittee, the pollution control agency, and other 
        state and local agencies are likely to expend less time and 
        resources over the long term to administer the Minnesota XL 
        permit than other types of permits; and 
           (8) the project is not inconsistent with the federal 
        government's Project XL guidance or any federal laws governing 
        the Project XL program. 
           Subd. 3.  [ADDITIONAL CRITERIA.] In addition to the minimum 
        criteria in subdivision 2, the commissioner in selecting 
        participants and the agency in issuing or amending a Minnesota 
        XL permit, must find that the permit meets one or more of the 
        following criteria: 
           (1) the permit allows the facility owner or operator as 
        much operational flexibility as can be reasonably provided 
        consistent with the need to achieve the anticipated pollution 
        reduction and ensure the verifiability and enforceability of the 
        permit's pollution limits; 
           (2) the permit provides facility-wide pollution limits 
        where practical, verifiable, and enforceable; 
           (3) the permit regulates air, water, and land pollution 
        effects, direct and indirect; 
           (4) the permit encourages pollution prevention or source 
        reduction; 
           (5) the permit encourages innovation in the design, 
        production, distribution, use, reuse, recycling, or disposal of 
        a product such that air, water, and land pollution impacts are 
        minimized over the life cycle of a product; 
           (6) the permit reduces the emission of nontoxic pollutants 
        regulated under applicable law; 
           (7) the permit reduces indoor chemical exposure, water use, 
        or energy use; 
           (8) the permit minimizes transfer, direct and indirect, of 
        pollution between the air, water, and land; 
           (9) the regulatory techniques employed in the permit have 
        potential application to other permittees; 
           (10) the permittee agrees to measure and demonstrate the 
        success of the Minnesota XL permit in addition to the assessment 
        in subdivision 2, clause (6), such as tracking pollution 
        prevention incentives and initiatives or using surveys to 
        measure any attitudinal changes by facility personnel or the 
        public; 
           (11) the permit is multiagency, under subdivision 4. 
           Subd. 4.  [MULTIAGENCY MINNESOTA XL PERMITS.] The pollution 
        control agency may include or vary in a Minnesota XL permit the 
        related requirements of other state or local agencies, if the 
        pollution control agency, the prospective permittee, and the 
        other state or local agency find that it is reasonable to do 
        so.  Notwithstanding conflicting procedural requirements, the 
        other agencies may exercise their related permitting, licensing, 
        or other approval responsibilities by including their 
        requirements in the Minnesota XL permit.  The pollution control 
        agency may not include or vary the related requirements of other 
        state or local agencies in a Minnesota XL permit unless the 
        other agencies agree to sign the permit.  The Minnesota XL 
        permit shall identify any requirement, the source of which is 
        not the pollution control agency, and identify the source 
        agency.  The commissioner of the pollution control agency and 
        the other agencies may agree to share inspection or other 
        responsibilities related to the Minnesota XL permit.  For 
        purposes of this subdivision, requirements are related if they 
        have a direct or indirect bearing on environmental protection or 
        indoor chemical exposure. 
           Subd. 5.  [ENVIRONMENTAL POLICY ACT.] Sections 114C.10 to 
        114C.14 do not supersede the requirements of chapter 116D and 
        the rules adopted under it. 
           Subd. 6.  [PLANS AND PROGRESS REPORTS UNDER CHAPTERS 115D 
        AND 115E.] A permittee complies with the plan content and timing 
        requirements of sections 115D.07, 115E.04, and 115E.045 if the 
        Minnesota XL permit requires the permittee to include in an 
        overall environmental management plan satisfactory alternative 
        information.  A permittee complies with the progress report 
        content and timing requirements of section 115D.08 if the 
        Minnesota XL permit requires the permittee to include in its 
        overall reporting requirements satisfactory alternative 
        information, and specifies a schedule for submitting the 
        information. 
           Sec. 5.  [114C.12] [ISSUANCE, AMENDMENT, AND REVOCATION 
        PROCEDURE.] 
           Subdivision 1.  [STAKEHOLDER GROUP.] The commissioner of 
        the pollution control agency shall: 
           (1) ensure that the stakeholder group for each Minnesota XL 
        permit includes members that represent diversity of stakeholders 
        that emphasizes participation by members from the local 
        community but does not exclude other stakeholders; 
           (2) ensure that a decision-making process that seeks 
        consensus is in place; and 
           (3) ensure that reasonable technical assistance is provided 
        to facilitate stakeholder understanding of the design, 
        implementation, and evaluation of each Minnesota XL permit. 
           Subd. 2.  [UNIFIED PERMIT ACTION AND VARIANCE 
        PROCEDURE.] The pollution control agency may issue, amend, or 
        revoke Minnesota XL permits using the single permit and variance 
        procedure in subdivision 4, notwithstanding conflicting state or 
        local procedural requirements.  If a Minnesota XL permit 
        includes variances from applicable state rules or local 
        ordinances or local regulations, the issuance or amendment of 
        the permit constitutes adoption of a variance to such state 
        rules or local ordinances or local regulations if the Minnesota 
        XL permit identifies, in general terms, any state rules or local 
        ordinances or local regulations being varied. 
           Subd. 3.  [VARIANCE STANDARDS.] Although subdivision 2 
        establishes the procedure for granting variances in a Minnesota 
        XL permit, the agency in deciding whether to grant a variance 
        must apply the substantive standards for granting a variance 
        applicable to the state rule, local ordinance, or local 
        regulation being varied or find that the variance either: 
           (1) promotes reduction in overall levels of pollution 
        beyond what is required by applicable law, consistent with the 
        purposes of this chapter; or 
           (2) reduces the administrative burden on state or local 
        agencies or the permittee, provided that alternative monitoring, 
        testing, notification, recordkeeping, or reporting requirements 
        will provide the information needed by the state or local agency 
        to ensure compliance. 
           Subd. 4.  [PROCEDURE.] (a) The pollution control agency 
        must provide at least 30 days for public comment on the agency's 
        proposed issuance, amendment, or revocation of a Minnesota XL 
        permit.  Before the start of the public comment period, the 
        commissioner of the pollution control agency must prepare a 
        draft permit, permit amendment, or notice of permit revocation 
        and a fact sheet that: 
           (1) briefly describes the principal facts and the 
        significant factual, legal, methodological, and policy questions 
        considered by the commissioner and the commissioner's proposed 
        determination; 
           (2) briefly describes how the permit action proposed by the 
        commissioner meets the criteria of section 114C.11 and furthers 
        the policy of section 114C.01; and 
           (3) identifies any rules that would be varied by the 
        commissioner's proposed permit action. 
           (b) The commissioner shall prepare a public notice of the 
        proposed permit action that: 
           (1) briefly describes the facility or activity that is the 
        subject of the proposed permit action; 
           (2) states the commissioner's proposed permit action and 
        whether it includes a variance of any state rules or local 
        ordinances or local regulations; 
           (3) identifies an agency person to contact for additional 
        information; 
           (4) states that the draft permit, permit amendment, or 
        notice of revocation and the fact sheet are available upon 
        request; 
           (5) states that comments may be submitted to the agency by 
        the public during the comment period; and 
           (6) describes the procedures that the agency will use to 
        make a final decision, including how persons may request public 
        informational meetings, contested case hearings, and appearances 
        at public meetings of the agency.  The agency or the 
        commissioner may order a public informational meeting if the 
        comments received during the comment period demonstrate 
        considerable public interest in the proposed permit action.  
           (c) The commissioner shall mail the public notice to the 
        applicant, all persons who have registered with the agency to 
        receive notice of permit actions, and to any interested person 
        upon request.  The commissioner shall make a copy of the public 
        notice available at the agency's main office and the applicable 
        regional office.  The commissioner shall circulate the public 
        notice in the geographic area of the facility or activity 
        subject to the proposed permit action, either by posting in 
        public buildings, by publication in local newspapers or 
        periodicals, by publication in the State Register, or by an 
        alternate method deemed by the commissioner to be more effective 
        such as an electronic bulletin board or mail service. 
           (d) The commissioner shall have the discretion to issue, 
        amend, or revoke a Minnesota XL permit if: 
           (1) the commissioner has included in the public notice 
        information notifying persons of their right to request that the 
        decision to issue, amend, or revoke the Minnesota XL permit be 
        presented to the agency; and 
           (2) neither the permit applicant, a member of the 
        stakeholders group, or any person commenting on the proposed 
        issuance, amendment, or revocation of the Minnesota XL permit 
        has requested, during the comment period, that the decision be 
        made by the agency or requested a contested case hearing. 
           If the conditions in clauses (1) and (2) have not been met, 
        or if, prior to the commissioner's decision, one or more members 
        of the agency request that the decision to issue, amend, or 
        revoke the Minnesota XL permit be made by the agency, then the 
        agency shall have the sole authority to make that decision. 
           Subd. 5.  [PERMIT REVOCATION.] (a) The pollution control 
        agency may revoke a Minnesota XL permit if requested by the 
        permittee or if the agency finds that: 
           (1) the permittee is in significant noncompliance with the 
        Minnesota XL permit or with applicable law; 
           (2) the permittee is not able, or has shown a lack of 
        willingness, to comply with future pollution reduction deadlines 
        in the Minnesota XL permit; 
           (3) the permitted facility or activity endangers human 
        health or the environment and the danger cannot be removed by an 
        amendment to the Minnesota XL permit; or 
           (4) after proper notification and a reasonable amount of 
        time has passed, the permittee has not satisfactorily addressed 
        a substantive issue raised by a majority of members of the 
        stakeholders group. 
           (b) If the agency revokes a Minnesota XL permit, it shall 
        in its revocation order: 
           (1) delay any compliance deadlines that had been varied by 
        the Minnesota XL permit if the agency finds it necessary to 
        provide the permittee a reasonable amount of time to obtain 
        alternative permits under chapters other than this chapter and 
        under local ordinances and regulations, and to achieve 
        compliance; and 
           (2) establish practical interim requirements to replace the 
        requirements of the Minnesota XL permit that the agency finds 
        the permittee will not be able to comply with between the time 
        of permit revocation and issuance of the alternative permits, 
        provided that such interim requirements shall not allow 
        pollution from the facility in excess of that allowed by 
        applicable law at the time the permit was issued. 
           (c) The permittee shall comply with the agency's order and 
        with all requirements of the Minnesota XL permit for which 
        alternative interim requirements have not been established in 
        the agency's order, until the applicable alternative permits 
        have been issued. 
           Sec. 6.  [114C.13] [FEES.] 
           Minnesota XL permittees shall continue to be subject to the 
        same fee structures they would have been subject to if they had 
        obtained the permits that the Minnesota XL permit replaces.  
           Sec. 7.  [114C.14] [ENFORCEMENT AND JUDICIAL REVIEW.] 
           Subdivision 1.  [ENFORCEMENT.] A Minnesota XL permit may be 
        enforced in any manner provided by law for the enforcement of 
        permits issued under chapter 115 or 116, except for requirements 
        of other state or local agencies that are included in the permit 
        and except that the defense in section 609.671, subdivision 14, 
        also applies to any misdemeanor action taken under section 
        115.071, subdivision 2, paragraph (a).  Requirements of other 
        state or local agencies may be enforced using whatever 
        authorities would be available if the requirements had been 
        included in permits, licenses, or other approvals issued 
        directly by the other agencies.  The other agencies shall 
        consult with the commissioner of the pollution control agency 
        prior to taking any action enforcing a Minnesota XL permit. 
           Subd. 2.  [JUDICIAL REVIEW.] Any person aggrieved by a 
        final decision of the pollution control agency to issue, amend, 
        or revoke a Minnesota XL permit may obtain judicial review 
        pursuant to sections 14.63 to 14.69. 
                                   VARIANCES
           Sec. 8.  [114C.15] [VARIANCES THAT PROMOTE POLLUTION 
        REDUCTIONS OR REDUCE UNNECESSARY ADMINISTRATIVE BURDEN.] 
           In addition to the grounds for granting a variance set 
        forth in section 116.07, subdivision 5, the pollution control 
        agency may grant variances from its rules in order to: 
           (1) promote reduction in overall levels of pollution beyond 
        what is required by applicable law, consistent with the purposes 
        of this chapter; or 
           (2) reduce the administrative burden on the agency or the 
        permittee, provided that alternative monitoring, testing, 
        notification, recordkeeping, or reporting requirements will 
        provide the information needed by the agency to ensure 
        compliance. 
           Sec. 9.  Minnesota Statutes 1994, section 115.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERALLY.] The agency is hereby given and 
        charged with the following powers and duties: 
           (a) To administer and enforce all laws relating to the 
        pollution of any of the waters of the state; 
           (b) To investigate the extent, character, and effect of the 
        pollution of the waters of this state and to gather data and 
        information necessary or desirable in the administration or 
        enforcement of pollution laws, and to make such classification 
        of the waters of the state as it may deem advisable; 
           (c) To establish and alter such reasonable pollution 
        standards for any waters of the state in relation to the public 
        use to which they are or may be put as it shall deem necessary 
        for the purposes of this chapter and, with respect to the 
        pollution of waters of the state, chapter 116; 
           (d) To encourage waste treatment, including advanced waste 
        treatment, instead of stream low-flow augmentation for dilution 
        purposes to control and prevent pollution; 
           (e) To adopt, issue, reissue, modify, deny, or revoke, 
        enter into or enforce reasonable orders, permits, variances, 
        standards, rules, schedules of compliance, and stipulation 
        agreements, under such conditions as it may prescribe, in order 
        to prevent, control or abate water pollution, or for the 
        installation or operation of disposal systems or parts thereof, 
        or for other equipment and facilities; 
           (1) Requiring the discontinuance of the discharge of 
        sewage, industrial waste or other wastes into any waters of the 
        state resulting in pollution in excess of the applicable 
        pollution standard established under this chapter; 
           (2) Prohibiting or directing the abatement of any discharge 
        of sewage, industrial waste, or other wastes, into any waters of 
        the state or the deposit thereof or the discharge into any 
        municipal disposal system where the same is likely to get into 
        any waters of the state in violation of this chapter and, with 
        respect to the pollution of waters of the state, chapter 116, or 
        standards or rules promulgated or permits issued pursuant 
        thereto, and specifying the schedule of compliance within which 
        such prohibition or abatement must be accomplished; 
           (3) Prohibiting the storage of any liquid or solid 
        substance or other pollutant in a manner which does not 
        reasonably assure proper retention against entry into any waters 
        of the state that would be likely to pollute any waters of the 
        state; 
           (4) Requiring the construction, installation, maintenance, 
        and operation by any person of any disposal system or any part 
        thereof, or other equipment and facilities, or the 
        reconstruction, alteration, or enlargement of its existing 
        disposal system or any part thereof, or the adoption of other 
        remedial measures to prevent, control or abate any discharge or 
        deposit of sewage, industrial waste or other wastes by any 
        person; 
           (5) Establishing, and from time to time revising, standards 
        of performance for new sources taking into consideration, among 
        other things, classes, types, sizes, and categories of sources, 
        processes, pollution control technology, cost of achieving such 
        effluent reduction, and any nonwater quality environmental 
        impact and energy requirements.  Said standards of performance 
        for new sources shall encompass those standards for the control 
        of the discharge of pollutants which reflect the greatest degree 
        of effluent reduction which the agency determines to be 
        achievable through application of the best available 
        demonstrated control technology, processes, operating methods, 
        or other alternatives, including, where practicable, a standard 
        permitting no discharge of pollutants.  New sources shall 
        encompass buildings, structures, facilities, or installations 
        from which there is or may be the discharge of pollutants, the 
        construction of which is commenced after the publication by the 
        agency of proposed rules prescribing a standard of performance 
        which will be applicable to such source.  Notwithstanding any 
        other provision of the law of this state, any point source the 
        construction of which is commenced after May 20, 1973, and which 
        is so constructed as to meet all applicable standards of 
        performance for new sources shall, consistent with and subject 
        to the provisions of section 306(d) of the Amendments of 1972 to 
        the Federal Water Pollution Control Act, not be subject to any 
        more stringent standard of performance for new sources during a 
        ten-year period beginning on the date of completion of such 
        construction or during the period of depreciation or 
        amortization of such facility for the purposes of section 167 or 
        169, or both, of the Federal Internal Revenue Code of 1954, 
        whichever period ends first.  Construction shall encompass any 
        placement, assembly, or installation of facilities or equipment, 
        including contractual obligations to purchase such facilities or 
        equipment, at the premises where such equipment will be used, 
        including preparation work at such premises; 
           (6) Establishing and revising pretreatment standards to 
        prevent or abate the discharge of any pollutant into any 
        publicly owned disposal system, which pollutant interferes with, 
        passes through, or otherwise is incompatible with such disposal 
        system; 
           (7) Requiring the owner or operator of any disposal system 
        or any point source to establish and maintain such records, make 
        such reports, install, use, and maintain such monitoring 
        equipment or methods, including where appropriate biological 
        monitoring methods, sample such effluents in accordance with 
        such methods, at such locations, at such intervals, and in such 
        a manner as the agency shall prescribe, and providing such other 
        information as the agency may reasonably require; 
           (8) Notwithstanding any other provision of this chapter, 
        and with respect to the pollution of waters of the state, 
        chapter 116, requiring the achievement of more stringent 
        limitations than otherwise imposed by effluent limitations in 
        order to meet any applicable water quality standard by 
        establishing new effluent limitations, based upon section 
        115.01, subdivision 13, clause (b), including alternative 
        effluent control strategies for any point source or group of 
        point sources to insure the integrity of water quality 
        classifications, whenever the agency determines that discharges 
        of pollutants from such point source or sources, with the 
        application of effluent limitations required to comply with any 
        standard of best available technology, would interfere with the 
        attainment or maintenance of the water quality classification in 
        a specific portion of the waters of the state.  Prior to 
        establishment of any such effluent limitation, the agency shall 
        hold a public hearing to determine the relationship of the 
        economic and social costs of achieving such limitation or 
        limitations, including any economic or social dislocation in the 
        affected community or communities, to the social and economic 
        benefits to be obtained and to determine whether or not such 
        effluent limitation can be implemented with available technology 
        or other alternative control strategies.  If a person affected 
        by such limitation demonstrates at such hearing that, whether or 
        not such technology or other alternative control strategies are 
        available, there is no reasonable relationship between the 
        economic and social costs and the benefits to be obtained, such 
        limitation shall not become effective and shall be adjusted as 
        it applies to such person; 
           (9) Modifying, in its discretion, any requirement or 
        limitation based upon best available technology with respect to 
        any point source for which a permit application is filed after 
        July 1, 1977, upon a showing by the owner or operator of such 
        point source satisfactory to the agency that such modified 
        requirements will represent the maximum use of technology within 
        the economic capability of the owner or operator and will result 
        in reasonable further progress toward the elimination of the 
        discharge of pollutants; and 
           (10) Requiring that applicants for wastewater discharge 
        permits evaluate in their applications the potential reuses of 
        the discharged wastewater; 
           (f) To require to be submitted and to approve plans and 
        specifications for disposal systems or point sources, or any 
        part thereof and to inspect the construction thereof for 
        compliance with the approved plans and specifications thereof; 
           (g) To prescribe and alter rules, not inconsistent with 
        law, for the conduct of the agency and other matters within the 
        scope of the powers granted to and imposed upon it by this 
        chapter and, with respect to pollution of waters of the state, 
        in chapter 116, provided that every rule affecting any other 
        department or agency of the state or any person other than a 
        member or employee of the agency shall be filed with the 
        secretary of state; 
           (h) To conduct such investigations, issue such notices, 
        public and otherwise, and hold such hearings as are necessary or 
        which it may deem advisable for the discharge of its duties 
        under this chapter and, with respect to the pollution of waters 
        of the state, under chapter 116, including, but not limited to, 
        the issuance of permits, and to authorize any member, employee, 
        or agent appointed by it to conduct such investigations or, 
        issue such notices and hold such hearings; 
           (i) For the purpose of water pollution control planning by 
        the state and pursuant to the Federal Water Pollution Control 
        Act, as amended, to establish and revise planning areas, adopt 
        plans and programs and continuing planning processes, including, 
        but not limited to, basin plans and areawide waste treatment 
        management plans, and to provide for the implementation of any 
        such plans by means of, including, but not limited to, 
        standards, plan elements, procedures for revision, 
        intergovernmental cooperation, residual treatment process waste 
        controls, and needs inventory and ranking for construction of 
        disposal systems; 
           (j) To train water pollution control personnel, and charge 
        such fees therefor as are necessary to cover the agency's 
        costs.  All such fees received shall be paid into the state 
        treasury and credited to the pollution control agency training 
        account; 
           (k) To impose as additional conditions in permits to 
        publicly owned disposal systems appropriate measures to insure 
        compliance by industrial and other users with any pretreatment 
        standard, including, but not limited to, those related to toxic 
        pollutants, and any system of user charges ratably as is hereby 
        required under state law or said Federal Water Pollution Control 
        Act, as amended, or any regulations or guidelines promulgated 
        thereunder; 
           (l) To set a period not to exceed five years for the 
        duration of any National Pollutant Discharge Elimination System 
        permit; 
           (m) To require each governmental subdivision identified as 
        a permittee for a wastewater treatment works to annually 
        evaluate the condition of its existing system and identify 
        future capital improvements that will be needed to attain or 
        maintain compliance with a national pollutant discharge 
        elimination system or state disposal system permit; and 
           (n) To train individual sewage treatment system personnel, 
        including persons who design, construct, install, inspect, 
        service, and operate individual sewage treatment systems, and 
        charge fees as necessary to pay the agency's costs.  All fees 
        received must be paid into the state treasury and credited to 
        the agency's training account.  Money in the account is 
        appropriated to the agency to pay expenses related to training. 
        The information required in clause (m) must be submitted 
        annually to the commissioner on a form provided by the 
        commissioner.  The commissioner shall provide technical 
        assistance if requested by the governmental subdivision. 
           The powers and duties given the agency in this subdivision 
        also apply to permits issued under chapter 114C. 
           Sec. 10.  Minnesota Statutes 1994, section 115.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [HEARING OR INVESTIGATION.] In any hearing or 
        investigation conducted pursuant to this chapter and chapters 
        114C, 116, and 116F, any employee or agent thereto authorized by 
        the agency, may administer oaths, examine witnesses and issue, 
        in the name of the agency, subpoenas requiring the attendance 
        and testimony of witnesses and the production of evidence 
        relevant to any matter involved in any such hearing or 
        investigation.  Witnesses shall receive the same fees and 
        mileage as in civil actions. 
           Sec. 11.  Minnesota Statutes 1994, section 115.04, is 
        amended to read: 
           115.04 [DISPOSAL SYSTEMS AND POINT SOURCES.] 
           Subdivision 1.  [INFORMATION.] Any person operating or 
        installing a disposal system or other point source, or portion 
        thereof, when requested by the agency, or any member, employee 
        or agent thereof, when authorized by it, shall furnish to it any 
        information which that person may have or which is relevant to 
        the subject of this chapter, chapter 114C, and, with respect to 
        the pollution of waters of the state, of chapter 116.  
           Subd. 2.  [EXAMINATION OF RECORDS.] The agency or any 
        member, employee or agent thereof, when authorized by it, upon 
        presentation of credentials, may examine and copy any books, 
        papers, records or memoranda pertaining to the installation, 
        maintenance, or operation or discharge, including, but not 
        limited to, monitoring data, of disposal systems or other point 
        sources, in accordance with the purposes of this chapter, 
        chapter 114C, and, with respect to the pollution of waters of 
        the state, chapter 116.  
           Subd. 3.  [ACCESS TO PREMISES.] Whenever it shall be 
        necessary for the purposes of this chapter, chapter 114C, and, 
        with respect to pollution of waters of the state, chapter 116, 
        the agency or any member, employee, or agent thereof, when 
        authorized by it, upon presentation of credentials, may enter 
        upon any property, public or private, for the purpose of 
        obtaining information or examination of records or conducting 
        surveys or investigations.  
           Sec. 12.  Minnesota Statutes 1994, section 115.071, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REMEDIES AVAILABLE.] The provisions of 
        sections 103F.701 to 103F.761, this chapter and chapters 114C, 
        115A, and 116, and sections 325E.10 to 325E.1251 and 325E.32 and 
        all rules, standards, orders, stipulation agreements, schedules 
        of compliance, and permits adopted or issued by the agency 
        thereunder or under any other law now in force or hereafter 
        enacted for the prevention, control, or abatement of pollution 
        may be enforced by any one or any combination of the following:  
        criminal prosecution; action to recover civil penalties; 
        injunction; action to compel performance; or other appropriate 
        action, in accordance with the provisions of said chapters and 
        this section. 
           Sec. 13.  Minnesota Statutes 1994, section 115.071, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CRIMINAL PENALTIES.] (a)  [VIOLATIONS OF LAWS; 
        ORDERS; PERMITS.] Except as provided in section 609.671, any 
        person who willfully or negligently violates any provision of 
        this chapter or chapter 114C or 116, or any standard, rule, 
        variance, order, stipulation agreement, schedule of compliance 
        or permit issued or adopted by the agency thereunder shall upon 
        conviction be guilty of a misdemeanor. 
           (b)  [DUTY OF LAW ENFORCEMENT OFFICIALS.] It shall be the 
        duty of all county attorneys, sheriffs and other peace officers, 
        and other officers having authority in the enforcement of the 
        general criminal laws to take all action to the extent of their 
        authority, respectively, that may be necessary or proper for the 
        enforcement of said provisions, rules, standards, orders, 
        stipulation agreements, variances, schedule of compliance, or 
        permits. 
           Sec. 14.  Minnesota Statutes 1994, section 115.071, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CIVIL PENALTIES.] Any person who violates any 
        provision of this chapter or chapter 114C or 116, except any 
        provisions of chapter 116 relating to air and land pollution 
        caused by agricultural operations which do not involve National 
        Pollutant Discharge Elimination System permits, or of (1) any 
        effluent standards and limitations or water quality standards, 
        (2) any permit or term or condition thereof, (3) any National 
        Pollutant Discharge Elimination System filing requirements, (4) 
        any duty to permit or carry out inspection, entry or monitoring 
        activities, or (5) any rules, stipulation agreements, variances, 
        schedules of compliance, or orders issued by the agency, shall 
        forfeit and pay to the state a penalty, in an amount to be 
        determined by the court, of not more than $10,000 per day of 
        violation except that if the violation relates to hazardous 
        waste the person shall forfeit and pay to the state a penalty, 
        in an amount to be determined by the court, of not more than 
        $25,000 per day of violation. 
           In addition, in the discretion of the court, the defendant 
        may be required to: 
           (a) forfeit and pay to the state a sum which will 
        adequately compensate the state for the reasonable value of 
        cleanup and other expenses directly resulting from unauthorized 
        discharge of pollutants, whether or not accidental; 
           (b) forfeit and pay to the state an additional sum to 
        constitute just compensation for any loss or destruction to 
        wildlife, fish or other aquatic life and for other actual 
        damages to the state caused by an unauthorized discharge of 
        pollutants. 
           As a defense to any of said damages, the defendant may 
        prove that the violation was caused solely by (1) an act of God, 
        (2) an act of war, (3) negligence on the part of the state of 
        Minnesota, or (4) an act or failure to act which constitutes 
        sabotage or vandalism, or any combination of the foregoing 
        clauses. 
           The civil penalties and damages provided for in this 
        subdivision may be recovered by a civil action brought by the 
        attorney general in the name of the state. 
           Sec. 15.  Minnesota Statutes 1994, section 115.071, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INJUNCTIONS.] Any violation of the provisions, 
        rules, standards, orders, stipulation agreements, variances, 
        schedules of compliance, or permits specified in this chapter 
        and chapter chapters 114C and 116 shall constitute a public 
        nuisance and may be enjoined as provided by law in an action, in 
        the name of the state, brought by the attorney general. 
           Sec. 16.  Minnesota Statutes 1994, section 115.071, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ACTIONS TO COMPEL PERFORMANCE.] In any action to 
        compel performance of an order of the agency for any purposes 
        relating to the prevention, control or abatement of pollution 
        under this chapter and chapter chapters 114C and 116, the court 
        may require any defendant adjudged responsible to do and perform 
        any and all acts and things within the defendant's power which 
        are reasonably necessary to accomplish the purposes of the order.
        In case a municipality or its governing or managing body or any 
        of its officers is a defendant, the court may require it to 
        exercise its powers, without regard to any limitation of any 
        requirement for an election or referendum imposed thereon by law 
        and without restricting the powers of the agency to do any or 
        all of the following, without limiting the generality hereof:  
        to levy taxes, levy special assessments, prescribe service or 
        use charges, borrow money, issue bonds, employ assistance, 
        acquire real or personal property, let contracts or otherwise 
        provide for the doing of work or the construction, installation, 
        maintenance, or operation of facilities, and do all other acts 
        and things reasonably necessary to accomplish the purposes of 
        the order, but the court shall grant the municipality the 
        opportunity to determine the appropriate financial alternatives 
        to be utilized in complying with the court imposed requirements. 
           Sec. 17.  Minnesota Statutes 1994, section 115.072, is 
        amended to read: 
           115.072 [RECOVERY OF LITIGATION COSTS AND EXPENSES.] 
           In any action brought by the attorney general, in the name 
        of the state, pursuant to the provisions of this chapter and 
        chapter chapters 114C and 116, for civil penalties, injunctive 
        relief, or in an action to compel compliance, if the state shall 
        finally prevail, and if the proven violation was willful, the 
        state, in addition to other penalties provided in this chapter, 
        may be allowed an amount determined by the court to be the 
        reasonable value of all or a part of the litigation expenses 
        incurred by the state.  In determining the amount of such 
        litigation expenses to be allowed, the court shall give 
        consideration to the economic circumstances of the defendant.  
           Amounts recovered under the provisions of this section and 
        section 115.071, subdivisions 3 to 5, shall be paid into the 
        environmental fund in the state treasury to the extent provided 
        in section 115.073. 
           Sec. 18.  Minnesota Statutes 1994, section 115.075, is 
        amended to read: 
           115.075 [INFORMATION AND MONITORING.] 
           A person may not: 
           (1) make a false material statement, representation, or 
        certification in; omit material information from; or alter, 
        conceal, or fail to file or maintain a notice, application, 
        record, report, plan, manifest, or other document required under 
        section 103F.701 or this chapter or chapter 114C, 115A, or 116; 
        or 
           (2) falsify, tamper with, render inaccurate, or fail to 
        install a monitoring device or method required to be maintained 
        or followed for the purpose of compliance with sections 103F.701 
        to 103F.761 or this chapter or chapter 114C, 115A, or 116. 
           Sec. 19.  Minnesota Statutes 1994, section 115.076, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY OF COMMISSIONER.] The agency may 
        refuse to issue or to authorize the transfer of a hazardous 
        waste facility permit or a solid waste facility permit to 
        construct or operate a commercial waste facility as defined in 
        section 115A.03, subdivision 6, if the agency determines that 
        the permit applicant does not possess sufficient expertise and 
        competence to operate the facility in conformance with the 
        requirements of this chapter and chapter chapters 114C and 116, 
        or if other circumstances exist that demonstrate that the permit 
        applicant may not operate the facility in conformance with the 
        requirements of this chapter and chapter chapters 114C and 116.  
        In making this determination, the agency may consider: 
           (1) the experience of the permit applicant in constructing 
        or operating commercial waste facilities; 
           (2) the expertise of the permit applicant; 
           (3) the past record of the permit applicant in operating 
        commercial waste facilities in Minnesota and other states; 
           (4) any criminal convictions of the permit applicant in 
        state or federal court during the past five years that bear on 
        the likelihood that the permit applicant will operate the 
        facility in conformance with the requirements of this chapter 
        and chapter chapters 114C and 116; and 
           (5) in the case of a corporation or business entity, any 
        criminal convictions in state or federal court during the past 
        five years of any of the permit applicant's officers, partners, 
        or facility managers that bear on the likelihood that the 
        facility will be operated in conformance with the requirements 
        of this chapter and chapter chapters 114C and 116. 
           Sec. 20.  Minnesota Statutes 1994, section 116.07, 
        subdivision 9, is amended to read: 
           Subd. 9.  [ORDERS; INVESTIGATIONS.] The agency shall have 
        the following powers and duties for the enforcement of any 
        provision of this chapter and chapter 114C, relating to air 
        contamination or waste:  
           (a) to adopt, issue, reissue, modify, deny, revoke, enter 
        into or enforce reasonable orders, schedules of compliance and 
        stipulation agreements; 
           (b) to require the owner or operator of any emission 
        facility, air contaminant treatment facility, potential air 
        contaminant storage facility, or any system or facility related 
        to the storage, collection, transportation, processing, or 
        disposal of waste to establish and maintain records; to make 
        reports; to install, use, and maintain monitoring equipment or 
        methods; and to make tests, including testing for odor where a 
        nuisance may exist, in accordance with methods, at locations, at 
        intervals, and in a manner as the agency shall prescribe; and to 
        provide other information as the agency may reasonably require; 
           (c) to conduct investigations, issue notices, public and 
        otherwise, and order hearings as it may deem necessary or 
        advisable for the discharge of its duties under this chapter and 
        chapter 114C, including but not limited to the issuance of 
        permits; and to authorize any member, employee, or agent 
        appointed by it to conduct the investigations and issue the 
        notices.  
           Sec. 21.  Minnesota Statutes 1995 Supplement, section 
        116.072, subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY TO ISSUE PENALTY ORDERS.] (a) 
        The commissioner may issue an order requiring violations to be 
        corrected and administratively assessing monetary penalties for 
        violations of this chapter and chapters 114C, 115, 115A, 115D, 
        and 115E, any rules adopted under those chapters, and any 
        standards, limitations, or conditions established in an agency 
        permit; and for failure to respond to a request for information 
        under section 115B.17, subdivision 3.  The order must be issued 
        as provided in this section. 
           (b) A county board may adopt an ordinance containing 
        procedures for the issuance of administrative penalty orders and 
        may issue orders beginning August 1, 1996.  Before adopting 
        ordinances, counties shall work cooperatively with the agency to 
        develop an implementation plan for the orders that substantially 
        conforms to a model ordinance developed by the counties and the 
        agency.  After adopting the ordinance, the county board may 
        issue orders requiring violations to be corrected and 
        administratively assessing monetary penalties for violations of 
        county ordinances adopted under section 400.16, 400.161, or 
        473.811 or chapter 115A that regulate solid and hazardous waste 
        and any standards, limitations, or conditions established in a 
        county license issued pursuant to these ordinances.  For 
        violations of ordinances relating to hazardous waste, a county's 
        penalty authority is described in subdivisions 2 to 5.  For 
        violations of ordinances relating to solid waste, a county's 
        penalty authority is described in subdivision 5a.  Subdivisions 
        6 to 11 apply to violations of ordinances relating to both solid 
        and hazardous waste.  
           (c) Monetary penalties collected by a county must be used 
        to manage solid and hazardous waste.  A county board's authority 
        is limited to violations described in paragraph (b).  Its 
        authority to issue orders under this section expires August 1, 
        1999.  
           Sec. 22.  Minnesota Statutes 1994, section 116.091, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INFORMATION.] Any person operating any 
        emission system or facility specified in chapter 114C or section 
        116.081, subdivision 1, when requested by the pollution control 
        agency, shall furnish to it any information which that person 
        may have which is relevant to pollution or the rules or 
        provisions of this chapter. 
           Sec. 23.  Minnesota Statutes 1994, section 116.091, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ACCESS TO PREMISES.] Whenever the agency deems 
        it necessary for the purposes of this chapter or chapter 114C, 
        the agency or any member, employee, or agent thereof, when 
        authorized by it, may enter upon any property, public or 
        private, for the purpose of obtaining information or conducting 
        surveys or investigations. 
           Sec. 24.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall codify the environmental 
        improvement pilot program, Laws 1995, chapter 168, sections 8 to 
        20, as Minnesota Statutes, sections 114C.20 to 114C.33. 
           Sec. 25.  [EFFECTIVE DATE.] 
           Sections 1 to 23 are effective the day following final 
        enactment. 
           Presented to the governor April 1, 1996 
           Signed by the governor April 3, 1996, 3:10 p.m.

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