1.1                          A bill for an act 
  1.2             relating to the environment; providing a new license 
  1.3             category under the well code for a vertical heat 
  1.4             exchanger contractor; establishing training 
  1.5             requirements for well contractors installing vertical 
  1.6             heat exchangers; amending Minnesota Statutes 1998, 
  1.7             sections 103I.005, subdivision 20; 103I.101, 
  1.8             subdivisions 2 and 5; 103I.105; 103I.208, subdivision 
  1.9             2; 103I.501; 103I.525, by adding a subdivision; and 
  1.10            103I.641, subdivisions 1 and 3; proposing coding for 
  1.11            new law in Minnesota Statutes, chapter 103I. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1998, section 103I.005, 
  1.14  subdivision 20, is amended to read: 
  1.15     Subd. 20.  [VERTICAL HEAT EXCHANGER.] "Vertical heat 
  1.16  exchanger" means an earth-coupled heating or cooling device 
  1.17  consisting of a ~~sealed~~ closed-loop piping system installed 
  1.18  vertically in the ground to transfer heat to or from the 
  1.19  surrounding earth.  
  1.20     Sec. 2.  Minnesota Statutes 1998, section 103I.101, 
  1.21  subdivision 2, is amended to read: 
  1.22     Subd. 2.  [DUTIES.] The commissioner shall:  
  1.23     (1) regulate the drilling, construction, modification, 
  1.24  repair, and sealing of wells and borings; 
  1.25     (2) examine and license well contractors, vertical heat 
  1.26  exchanger contractors, persons modifying or repairing well 
  1.27  casings, well screens, or well diameters; constructing, 
  1.28  repairing, and sealing unconventional wells such as drive point 
  2.1   wells or dug wells; constructing, repairing, and sealing 
  2.2   dewatering wells; sealing wells; installing well pumps or 
  2.3   pumping equipment; and excavating or drilling holes for the 
  2.4   installation of elevator shafts or hydraulic cylinders; 
  2.5      (3) register and examine monitoring well contractors; 
  2.6      (4) license explorers engaged in exploratory boring and 
  2.7   examine individuals who supervise or oversee exploratory boring; 
  2.8      (5) after consultation with the commissioner of natural 
  2.9   resources and the pollution control agency, establish standards 
  2.10  for the design, location, construction, repair, and sealing of 
  2.11  wells, elevator shafts, and borings within the state; and 
  2.12     (6) issue permits for wells, groundwater thermal devices, 
  2.13  vertical heat exchangers, and excavation for holes to install 
  2.14  elevator shafts or hydraulic cylinders.  
  2.15     Sec. 3.  Minnesota Statutes 1998, section 103I.101, 
  2.16  subdivision 5, is amended to read: 
  2.17     Subd. 5.  [COMMISSIONER TO ADOPT RULES.] The commissioner 
  2.18  shall adopt rules including:  
  2.19     (1) issuance of licenses for:  
  2.20     (i) qualified well contractors, persons modifying or 
  2.21  repairing well casings, well screens, or well diameters; 
  2.22     (ii) persons constructing, repairing, and sealing 
  2.23  unconventional wells such as drive points or dug wells; 
  2.24     (iii) persons constructing, repairing, and sealing 
  2.25  dewatering wells; 
  2.26     (iv) persons sealing wells; ~~and~~ 
  2.27     (v) persons installing well pumps or pumping equipment and 
  2.28  excavating holes for installing elevator shafts or hydraulic 
  2.29  cylinders; and 
  2.30     (vi) qualified vertical heat exchanger contractors; 
  2.31     (2) issuance of registration for monitoring well 
  2.32  contractors; 
  2.33     (3) establishment of conditions for examination and review 
  2.34  of applications for license and registration; 
  2.35     (4) establishment of conditions for revocation and 
  2.36  suspension of license and registration; 
  3.1      (5) establishment of minimum standards for design, 
  3.2   location, construction, repair, and sealing of wells to 
  3.3   implement the purpose and intent of this chapter; 
  3.4      (6) establishment of a system for reporting on wells and 
  3.5   borings drilled and sealed; 
  3.6      (7) establishment of standards for the construction, 
  3.7   maintenance, sealing, and water quality monitoring of wells in 
  3.8   areas of known or suspected contamination; 
  3.9      (8) establishment of wellhead protection measures for wells 
  3.10  serving public water supplies; 
  3.11     (9) establishment of procedures to coordinate collection of 
  3.12  well data with other state and local governmental agencies; 
  3.13     (10) establishment of criteria and procedures for 
  3.14  submission of well logs, formation samples or well cuttings, 
  3.15  water samples, or other special information required for and 
  3.16  water resource mapping; and 
  3.17     (11) establishment of minimum standards for design, 
  3.18  location, construction, maintenance, repair, sealing, safety, 
  3.19  and resource conservation related to borings, including 
  3.20  exploratory borings as defined in section 103I.005, subdivision 
  3.21  9. 
  3.22     Until the commissioner adopts rules under this chapter to 
  3.23  replace rules relating to wells and borings that were adopted 
  3.24  under chapter 156A, the rules adopted under chapter 156A shall 
  3.25  remain in effect. 
  3.26     Sec. 4.  Minnesota Statutes 1998, section 103I.105, is 
  3.27  amended to read: 
  3.28     103I.105 [ADVISORY COUNCIL ON WELLS AND BORINGS.] 
  3.29     (a) The advisory council on wells and borings is 
  3.30  established as an advisory council to the commissioner.  The 
  3.31  advisory council shall consist of ~~17~~ 19 voting members.  Of the 
  3.32  ~~17~~ 19 voting members: 
  3.33     (1) one member must be from the department of health, 
  3.34  appointed by the commissioner of health; 
  3.35     (2) one member must be from the department of natural 
  3.36  resources, appointed by the commissioner of natural resources; 
  4.1      (3) one member must be a member of the Minnesota geological 
  4.2   survey of the University of Minnesota, appointed by the 
  4.3   director; 
  4.4      (4) one member must be a licensed exploratory borer; 
  4.5      (5) one member must be a licensed elevator shaft 
  4.6   contractor; 
  4.7      (6) two members must be members of the public who are not 
  4.8   connected with the business of exploratory boring or the well 
  4.9   drilling industry; 
  4.10     (7) one member must be from the pollution control agency, 
  4.11  appointed by the commissioner of the pollution control agency; 
  4.12     (8) one member must be from the department of 
  4.13  transportation, appointed by the commissioner of transportation; 
  4.14     (9) one member from the board of water and soil resources 
  4.15  appointed by its chair; 
  4.16     (10) one member must be a monitoring well contractor; ~~and~~ 
  4.17     (11) six members must be residents of this state appointed 
  4.18  by the commissioner, who are actively engaged in the well 
  4.19  drilling industry, with not more than two from the seven-county 
  4.20  metropolitan area and at least four from other areas of the 
  4.21  state who represent different geographical regions; 
  4.22     (12) one member must be a licensed vertical heat exchanger 
  4.23  contractor or be certified by the International Ground Source 
  4.24  Heat Pump Association and appointed by the commissioner; and 
  4.25     (13) one member from the general public learned in the 
  4.26  theory and practice of vertical heat exchangers, to be 
  4.27  recommended by the International Ground Source Heat Pump 
  4.28  Association and appointed by the commissioner. 
  4.29     (b) An appointee of the well drilling industry may not 
  4.30  serve more than two consecutive terms.  
  4.31     (c) The appointees to the advisory council from the well 
  4.32  drilling industry must:  
  4.33     (1) have been residents of this state for at least three 
  4.34  years before appointment; and 
  4.35     (2) have at least five years' experience in the well 
  4.36  drilling business.  
  5.1      (d) The terms of the appointed members and the compensation 
  5.2   and removal of all members are governed by section 15.059, 
  5.3   except section 15.059, subdivision 5, relating to expiration of 
  5.4   the advisory council does not apply.  
  5.5      Sec. 5.  Minnesota Statutes 1998, section 103I.208, 
  5.6   subdivision 2, is amended to read: 
  5.7      Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
  5.8   property owner is:  
  5.9      (1) for a well that is not in use under a maintenance 
  5.10  permit, $100 annually; 
  5.11     (2) for construction of a monitoring well, $120, which 
  5.12  includes the state core function fee; 
  5.13     (3) for a monitoring well that is unsealed under a 
  5.14  maintenance permit, $100 annually; 
  5.15     (4) for monitoring wells used as a leak detection device at 
  5.16  a single motor fuel retail outlet, a single petroleum bulk 
  5.17  storage site excluding tank farms, or a single agricultural 
  5.18  chemical facility site, the construction permit fee is $120, 
  5.19  which includes the state core function fee, per site regardless 
  5.20  of the number of wells constructed on the site, and the annual 
  5.21  fee for a maintenance permit for unsealed monitoring wells is 
  5.22  $100 per site regardless of the number of monitoring wells 
  5.23  located on site; 
  5.24     (5) for a groundwater thermal exchange device, in addition 
  5.25  to the notification fee for wells, $120, which includes the 
  5.26  state core function fee; 
  5.27     (6) for a vertical heat exchanger~~, $120~~ with a heat pump 
  5.28  machine that is rated: 
  5.29     (i) at 25 tons or less, $50; 
  5.30     (ii) greater than 25 and 50 tons or less, $75; and 
  5.31     (iii) greater than 50 tons, $150; 
  5.32     (7) for a dewatering well that is unsealed under a 
  5.33  maintenance permit, $100 annually for each well, except a 
  5.34  dewatering project comprising more than five wells shall be 
  5.35  issued a single permit for $500 annually for wells recorded on 
  5.36  the permit; and 
  6.1      (8) for excavating holes for the purpose of installing 
  6.2   elevator shafts, $120 for each hole. 
  6.3      Sec. 6.  Minnesota Statutes 1998, section 103I.501, is 
  6.4   amended to read: 
  6.5      103I.501 [LICENSING AND REGULATION OF WELLS AND BORINGS.] 
  6.6      (a) The commissioner shall regulate and license:  
  6.7      (1) drilling, constructing, and repair of wells; 
  6.8      (2) sealing of wells; 
  6.9      (3) installing of well pumps and pumping equipment; 
  6.10     (4) excavating, drilling, and sealing of holes for the 
  6.11  installation of elevator shafts and hydraulic cylinders; ~~and~~ 
  6.12     (5) construction and sealing of environmental bore holes; 
  6.13  and 
  6.14     (6) installing of vertical heat exchangers.  
  6.15     (b) The commissioner shall examine and license well 
  6.16  contractors, limited well contractors, and elevator shaft 
  6.17  contractors, and examine and register monitoring well 
  6.18  contractors.  
  6.19     (c) The commissioner shall license explorers engaged in 
  6.20  exploratory boring and shall examine persons who supervise or 
  6.21  oversee exploratory boring.  
  6.22     Sec. 7.  Minnesota Statutes 1998, section 103I.525, is 
  6.23  amended by adding a subdivision to read: 
  6.24     Subd. 4a.  [VERTICAL HEAT EXCHANGER CERTIFICATION.] The 
  6.25  commissioner shall establish a vertical heat exchanger 
  6.26  certification program for well contractors licensed under this 
  6.27  section that must include the establishment, by rule, of 
  6.28  training and continuing education requirements.  The 
  6.29  commissioner must require at least 20 hours of training in 
  6.30  vertical heat exchanger installation to receive initial 
  6.31  certification under this subdivision.  If a well contractor 
  6.32  meets the training requirements, the commissioner shall issue a 
  6.33  vertical heat exchanger certification to the well contractor. 
  6.34     Sec. 8.  [103I.543] [VERTICAL HEAT EXCHANGER CONTRACTOR'S 
  6.35  LICENSE.] 
  6.36     Subdivision 1.  [APPLICATION.] (a) A person must file an 
  7.1   application and application fee with the commissioner to apply 
  7.2   for a vertical heat exchanger contractor's license. 
  7.3      (b) The application must state the applicant's 
  7.4   qualifications for the license, the equipment the applicant will 
  7.5   use in the contracting, and other information required by the 
  7.6   commissioner.  The application must be on forms prescribed by 
  7.7   the commissioner. 
  7.8      (c) A person may apply as an individual if the person: 
  7.9      (1) is not a vertical heat exchanger contractor 
  7.10  representing a firm, sole proprietorship, partnership, 
  7.11  association, corporation, or other entity, including the United 
  7.12  States government, any interstate body, the state and agency, 
  7.13  and department or political subdivision of the state; and 
  7.14     (2) meets the vertical heat exchanger contractor license 
  7.15  requirements under provisions of this chapter. 
  7.16     Subd. 2.  [APPLICATION FEE.] The application fee for a 
  7.17  vertical heat exchanger contractor's license is $50.  The 
  7.18  commissioner may not act on an application until the application 
  7.19  fee is paid. 
  7.20     Subd. 3.  [EXAMINATION.] After the commissioner has 
  7.21  approved the application, the applicant must take an examination 
  7.22  given by the commissioner. 
  7.23     Subd. 4.  [ISSUANCE OF LICENSE.] If an applicant meets the 
  7.24  experience requirements established by rule, passes the 
  7.25  examination as determined by the commissioner, submits the bond 
  7.26  under subdivision 5, and pays the license fee under subdivision 
  7.27  6, the commissioner shall issue a vertical heat exchanger 
  7.28  contractor's license. 
  7.29     Subd. 5.  [BOND.] (a) As a condition of being issued a 
  7.30  vertical heat exchanger contractor's license, the applicant, 
  7.31  except a person applying for an individual vertical heat 
  7.32  exchanger contractor's license, must submit a corporate surety 
  7.33  bond for $10,000, approved by the commissioner.  The bond must 
  7.34  be conditioned to pay the state on unlawful performance of work 
  7.35  regulated by this chapter in this state.  The bond is in lieu of 
  7.36  other license bonds required by a political subdivision of the 
  8.1   state. 
  8.2      (b) From proceeds of the bond, the commissioner may 
  8.3   compensate persons injured or suffering financial loss because 
  8.4   of a failure of the applicant to properly perform work or duties.
  8.5      Subd. 6.  [LICENSE FEE.] The fee for a vertical heat 
  8.6   exchanger contractor's license is $50. 
  8.7      Subd. 7.  [VALIDITY.] A vertical heat exchanger 
  8.8   contractor's license is valid until the date prescribed in the 
  8.9   license by the commissioner. 
  8.10     Subd. 8.  [RENEWAL.] (a) A licensee must file an 
  8.11  application and a renewal application fee to renew the license 
  8.12  by the date stated in the license. 
  8.13     (b) The renewal application fee shall be set by the 
  8.14  commissioner under section 16A.1285. 
  8.15     (c) The renewal application must include information that 
  8.16  the applicant has met continuing education requirements 
  8.17  established by the commissioner by rule. 
  8.18     (d) At the time of the renewal, the commissioner must have 
  8.19  on file all properly completed reports and permits for vertical 
  8.20  heat exchanger work conducted by the licensee since the last 
  8.21  license renewal. 
  8.22     Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
  8.23  to submit all information required for renewal in subdivision 8 
  8.24  or submits the application and information after the required 
  8.25  renewal date: 
  8.26     (1) the licensee must include an additional late fee set by 
  8.27  the commissioner under section 16A.1285; and 
  8.28     (2) the licensee may not conduct activities authorized by 
  8.29  the vertical heat exchanger contractor's license until the 
  8.30  renewal application, renewal application fee, late fee, and all 
  8.31  other information required in subdivision 8 are submitted. 
  8.32     Sec. 9.  Minnesota Statutes 1998, section 103I.641, 
  8.33  subdivision 1, is amended to read: 
  8.34     Subdivision 1.  [REQUIREMENTS.] A person may not drill or 
  8.35  construct an excavation used to install a vertical heat 
  8.36  exchanger unless the person is a vertical heat exchanger 
  9.1   contractor or well contractor, certified to install vertical 
  9.2   heat exchangers.  
  9.3      Sec. 10.  Minnesota Statutes 1998, section 103I.641, 
  9.4   subdivision 3, is amended to read: 
  9.5      Subd. 3.  [PERMIT REQUIRED.] (a) A vertical heat exchanger 
  9.6   may not be installed without first obtaining a permit for the 
  9.7   vertical heat exchanger from the commissioner.  A vertical heat 
  9.8   exchanger contractor or a well contractor, certified to install 
  9.9   vertical heat exchangers, must apply for the permit on forms 
  9.10  provided by the commissioner and must pay the permit fee.  
  9.11     (b) As a condition of the permit, the owner of the property 
  9.12  where the vertical heat exchanger is to be installed must agree 
  9.13  to allow inspection by the commissioner during regular working 
  9.14  hours of department of health inspectors. 
  9.15     Sec. 11.  [EFFECTIVE DATE.] 
  9.16     Sections 9 and 10 are effective August 1, 2000.