1.1                          A bill for an act
  1.2             relating to the environment; appropriating money from 
  1.3             the petroleum release compensation fund for additional 
  1.4             petroleum contamination cleanup grants; providing 
  1.5             reimbursements for small gasoline retailers; 
  1.6             establishing an underground petroleum tank replacement 
  1.7             loan program; modifying contaminated site cleanup 
  1.8             grant provisions; transferring authority to administer 
  1.9             individual on-site sewage treatment programs to the 
  1.10            pollution control agency; modifying sewer loan 
  1.11            repayment provisions; authorizing a bond sale; 
  1.12            modifying provisions relating to antifreeze disposal; 
  1.13            revising the plan for the collection and recycling of 
  1.14            used motor oil and filters; amending Minnesota 
  1.15            Statutes 1996, sections 115A.916; 115C.08, subdivision 
  1.16            4; 115C.09, by adding a subdivision; 115C.13; 116.18, 
  1.17            subdivision 3c; 116J.551; 116J.553, subdivision 2; 
  1.18            116J.554, subdivision 1; 325E.10, subdivision 2, and 
  1.19            by adding subdivisions; 325E.11; and 325E.112, 
  1.20            subdivision 2; 446A.072, by adding a subdivision; Laws 
  1.21            1996, chapter 351, section 2; proposing coding for new 
  1.22            law in Minnesota Statutes, chapter 116J. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24                             ARTICLE 1
  1.25                  PETROLEUM CONTAMINATION CLEANUP
  1.26     Section 1.  Minnesota Statutes 1996, section 115C.08, 
  1.27  subdivision 4, is amended to read: 
  1.28     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
  1.29  spent: 
  1.30     (1) to administer the petroleum tank release cleanup 
  1.31  program established in this chapter; 
  1.32     (2) for agency administrative costs under sections 116.46 
  1.33  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
  1.34  action taken by the agency under section 115C.03, including 
  2.1   investigations; 
  2.2      (3) for costs of recovering expenses of corrective actions 
  2.3   under section 115C.04; 
  2.4      (4) for training, certification, and rulemaking under 
  2.5   sections 116.46 to 116.50; 
  2.6      (5) for agency administrative costs of enforcing rules 
  2.7   governing the construction, installation, operation, and closure 
  2.8   of aboveground and underground petroleum storage tanks; 
  2.9      (6) for reimbursement of the harmful substance compensation 
  2.10  account under subdivision 5 and section 115B.26, subdivision 4; 
  2.11     (7) for administrative and staff costs as set by the board 
  2.12  to administer the petroleum tank release program established in 
  2.13  this chapter; ~~and~~ 
  2.14     (8) for corrective action performance audits under section 
  2.15  115C.093; and 
  2.16     (9) for contamination cleanup grants, as provided in 
  2.17  paragraph (c). 
  2.18     (b) Except as provided in paragraph (c), money in the fund 
  2.19  is appropriated to the board to make reimbursements or payments 
  2.20  under this section. 
  2.21     (c) Until December 31, 1999, $6,200,000 is annually 
  2.22  appropriated from the fund to the commissioner of trade and 
  2.23  economic development for contamination cleanup grants under 
  2.24  section 116J.554, provided that money appropriated in this 
  2.25  paragraph may be used only for cleanup costs attributable to 
  2.26  petroleum contamination, as determined by the commissioner of 
  2.27  the pollution control agency. 
  2.28     Sec. 2.  Minnesota Statutes 1996, section 115C.09, is 
  2.29  amended by adding a subdivision to read: 
  2.30     Subd. 3e.  [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 
  2.31  As used in this subdivision, "small gasoline retailer" means a 
  2.32  responsible person who owns no more than one location where 
  2.33  motor fuel was dispensed into motor vehicles or aircraft in the 
  2.34  previous year. 
  2.35     (b) For eligible applicants who are small gasoline 
  2.36  retailers that have dispensed less than 500,000 gallons of motor 
  3.1   fuel during the most recent calendar year that petroleum 
  3.2   products were dispensed at the location owned by the retailer, 
  3.3   the board shall reimburse the applicant for 90 percent of the 
  3.4   applicant's total reimbursable cost for tank removal projects 
  3.5   started after January 1, 1997, including, but not limited to, 
  3.6   closure in place, backfill, resurfacing, and utility service 
  3.7   restoration costs, provided that the tank involved is a 
  3.8   regulated underground storage tank. 
  3.9      (c) For eligible applicants who are small gasoline 
  3.10  retailers that have dispensed less than 250,000 gallons of motor 
  3.11  fuel during the most recent calendar year that petroleum 
  3.12  products were dispensed at the location owned by the retailer, 
  3.13  provided that the tank involved is a regulated underground 
  3.14  storage tank, the board shall reimburse the applicant for 95 
  3.15  percent of the following costs: 
  3.16     (1) tank removal costs described in paragraph (b); 
  3.17     (2) installation and excavation costs incurred in 
  3.18  conjunction with new tank installation; and 
  3.19     (3) petroleum contamination cleanup as provided under 
  3.20  subdivision 1. 
  3.21     Sec. 3.  Minnesota Statutes 1996, section 115C.13, is 
  3.22  amended to read: 
  3.23     115C.13 [REPEALER.] 
  3.24     Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
  3.25  115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
  3.26  115C.092, 115C.10, 115C.11, and 115C.12, are repealed effective 
  3.27  June 30, ~~2000~~ 2005.  Section 115C.09, subdivision 3e, is 
  3.28  repealed effective December 31, 1999. 
  3.29     Sec. 4.  [116J.56] [UNDERGROUND PETROLEUM TANK REPLACEMENT 
  3.30  LOAN PROGRAM.] 
  3.31     Subdivision 1.  [LOAN PROGRAM.] (a) The commissioner shall 
  3.32  establish and implement an underground petroleum tank 
  3.33  replacement loan program to facilitate the continued operation 
  3.34  of small gasoline retailers, as defined in section 115C.09, 
  3.35  subdivision 3e, paragraph (a), in this state. 
  3.36     (b) The commissioner may make a direct loan for the cost of 
  4.1   a replacement tank to a small gasoline retailer who has 
  4.2   dispensed less than 500,000 gallons of motor fuel during the 
  4.3   previous year who demonstrates an ability to repay the loan.  
  4.4   The interest rate on the loan shall not exceed three percent per 
  4.5   year, and the term of the loan may not exceed seven years.  
  4.6   Loans made under this subdivision may not exceed $10,000 or the 
  4.7   total out-of-pocket expenses of the small gasoline retailer for 
  4.8   tank replacement, whichever is less.  Payments on the principal 
  4.9   shall be credited to the petroleum tank fund under section 
  4.10  115C.08.  The interest payments must be deposited in the state 
  4.11  treasury and credited to an account in the special revenue 
  4.12  fund.  Money in this account is appropriated to the commissioner 
  4.13  for administrative expenses of the underground petroleum tank 
  4.14  replacement loan program. 
  4.15     Subd. 2.  [APPROPRIATION.] An amount necessary is 
  4.16  appropriated from the petroleum tank release cleanup fund to the 
  4.17  commissioner of trade and economic development for the 
  4.18  underground petroleum tank replacement loan program established 
  4.19  under this section. 
  4.20     Subd. 3.  [REPEALER.] This section is repealed effective 
  4.21  December 31, 1999. 
  4.22     Sec. 5.  [EFFECTIVE DATE.] 
  4.23     Sections 2 and 4 are effective the day following enactment. 
  4.24                             ARTICLE 2
  4.25                  CONTAMINATED SITE CLEANUP GRANTS
  4.26     Section 1.  Minnesota Statutes 1996, section 116J.551, is 
  4.27  amended to read: 
  4.28     116J.551 [CREATION OF ACCOUNT; GRANTS AND REPAYMENT.] 
  4.29     A contaminated site cleanup and ~~development~~ predevelopment 
  4.30  account is created in the general fund.  Money in the account 
  4.31  may be used, as appropriated by law, to make grants as provided 
  4.32  in ~~section~~ sections 116J.554 and 116J.564 and to pay for the 
  4.33  commissioner's costs in reviewing applications and making grants.
  4.34  Grants from the contaminated site cleanup and predevelopment 
  4.35  account must be repaid without interest to the commissioner 
  4.36  according to the formula in this section and deposited into the 
  5.1   account.  The grantee must repay an amount equal to the fair 
  5.2   market value of the property multiplied by the percentage that 
  5.3   the grant received for the property bears to the property's 
  5.4   total cleanup and predevelopment costs; provided that in no 
  5.5   event may the repayment exceed the amount of the grant.  The 
  5.6   fair market value shall be determined by the commissioner at the 
  5.7   time the cleanup and predevelopment phases are completed and the 
  5.8   property is ready to develop.  The commissioner shall negotiate 
  5.9   a payback schedule providing for payback over a period of up to 
  5.10  three years beginning at the time the property is ready to 
  5.11  develop. 
  5.12     Sec. 2.  Minnesota Statutes 1996, section 116J.553, 
  5.13  subdivision 2, is amended to read: 
  5.14     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
  5.15  prescribe and provide the application form.  Except as provided 
  5.16  in paragraph (b), the application must include at least the 
  5.17  following information: 
  5.18     (1) identification of the site; 
  5.19     (2) an approved response action plan for the site, 
  5.20  including the results of engineering and other tests showing the 
  5.21  nature and extent of the release or threatened release of 
  5.22  contaminants at the site; 
  5.23     (3) a detailed estimate, along with necessary supporting 
  5.24  evidence, of the total cleanup costs for the site; 
  5.25     (4) an appraisal of the current market value of the 
  5.26  property, separately taking into account the effect of the 
  5.27  contaminants on the market value, prepared by a qualified 
  5.28  independent appraiser using accepted appraisal methodology; 
  5.29     (5) an assessment of the development potential or likely 
  5.30  use of the site after completion of the response action plan, 
  5.31  including any specific commitments from third parties to 
  5.32  construct improvements on the site; 
  5.33     (6) the manner in which the municipality will meet the 
  5.34  local match requirement; and 
  5.35     (7) any additional information or material that the 
  5.36  commissioner prescribes. 
  6.1      (b) An application for a grant under section 116J.554, 
  6.2   subdivision 1, paragraph (b), must include a detailed estimate 
  6.3   of the cost of the actions for which the grant is sought, but 
  6.4   need not include the information specified in paragraph (a), 
  6.5   clauses (2) to (4), and (6). 
  6.6      Sec. 3.  Minnesota Statutes 1996, section 116J.554, 
  6.7   subdivision 1, is amended to read: 
  6.8      Subdivision 1.  [AUTHORITY.] (a) The commissioner may make 
  6.9   a grant to an applicant development authority to pay for up to 
  6.10  75 percent of the cleanup costs for a qualifying site~~, except~~ 
  6.11  ~~the grant may not exceed~~ or 50 percent of the project costs, 
  6.12  whichever is greater.  
  6.13     (b) The commissioner may also make a grant to an applicant 
  6.14  development authority to pay up to 75 percent or $50,000, 
  6.15  whichever is less, toward the cost of performing contaminant 
  6.16  investigations and the development of a response action plan for 
  6.17  a qualifying site. 
  6.18     (c) The determination of whether to make a grant for a 
  6.19  qualifying site is within the sole discretion of the 
  6.20  commissioner, subject to the process provided by this section, 
  6.21  and available unencumbered money in the appropriation.  The 
  6.22  commissioner's decisions and application of the priorities under 
  6.23  section 116J.555 are not subject to judicial review, except for 
  6.24  abuse of discretion. 
  6.25     (d) The total amount of money provided in grants under 
  6.26  paragraph (b) may not exceed $250,000 per fiscal year. 
  6.27     (e) In making grants under paragraph (b), the commissioner 
  6.28  shall give priority to applicants that have not received a grant 
  6.29  under paragraph (a) or section 473.252 during the year ending on 
  6.30  the date of application. 
  6.31     Sec. 4.  [116J.562] [DEFINITIONS.] 
  6.32     Subdivision 1.  [APPLICATION.] For the purposes of sections 
  6.33  116J.562 to 116J.564, the following terms have the meanings 
  6.34  given. 
  6.35     Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
  6.36  has the meaning given in section 116J.552, subdivision 4. 
  7.1      Subd. 3.  [METROPOLITAN AREA.] "Metropolitan area" has the 
  7.2   meaning given in section 116J.552, subdivision 5. 
  7.3      Subd. 4.  [MUNICIPALITY.] "Municipality" has the meaning 
  7.4   given in section 116J.552, subdivision 6. 
  7.5      Subd. 5.  [QUALIFYING SITE.] "Qualifying site" means: 
  7.6      (1) a qualifying site under section 116J.564, subdivision 
  7.7   2; or 
  7.8      (2) a site that would represent more than 50 percent of the 
  7.9   remaining land in a city suitable for industrial development if 
  7.10  it was properly filled. 
  7.11     Subd. 6.  [PREDEVELOPMENT COSTS.] "Predevelopment costs" 
  7.12  means costs of the following:  property acquisition; demolition 
  7.13  of existing improvements; relocation of persons or businesses; 
  7.14  site preparation and grading. 
  7.15     Sec. 5.  [116J.563] [GRANT APPLICATIONS.] 
  7.16     Subdivision 1.  [APPLICATION REQUIRED.] To obtain a 
  7.17  predevelopment and job creation grant, a development authority 
  7.18  shall apply to the commissioner. 
  7.19     Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
  7.20  prescribe and provide the application form.  An application must 
  7.21  include at least the following information: 
  7.22     (1) identification of the site; 
  7.23     (2) a detailed estimate, along with necessary supporting 
  7.24  evidence, of the total predevelopment costs for the site; 
  7.25     (3) an assessment of the development potential or likely 
  7.26  use of the site, including any specific commitments from third 
  7.27  parties to construct improvements on the site; and 
  7.28     (4) any additional information or material that the 
  7.29  commissioner prescribes. 
  7.30     Sec. 6.  [116J.564] [GRANTS.] 
  7.31     Subdivision 1.  [AUTHORITY.] The commissioner may make 
  7.32  grants to development authorities for up to 75 percent of the 
  7.33  predevelopment costs at qualifying sites.  The determination of 
  7.34  whether to make a grant for a qualifying site is within the sole 
  7.35  discretion of the commissioner, subject to the process and 
  7.36  criteria provided by this section and available appropriations.  
  8.1   The commissioner's decisions and application of the priorities 
  8.2   under subdivision 3 are not subject to judicial review, except 
  8.3   for abuse of discretion. 
  8.4      Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
  8.5   under this section if: 
  8.6      (1) the appraised value of the site, after adjusting for 
  8.7   the effect on the value of the presence or possible presence of 
  8.8   contaminants, using accepted appraisal methodology (i) is less 
  8.9   than 50 percent of the estimated cleanup costs for the site or 
  8.10  (ii) is less than or equal to the estimated cleanup costs for 
  8.11  the site and the cleanup costs equal or exceed $3 per square 
  8.12  foot for the site; or 
  8.13     (2) the site is a qualifying site under section 116J.562, 
  8.14  subdivision 5, clause (2); and 
  8.15     (3) after completion of the grant-funded project, it is 
  8.16  expected that the site will be further improved in a manner that 
  8.17  complies with the conditions in subdivision 4. 
  8.18     Subd. 3.  [PRIORITIES] (a) The legislature expects that 
  8.19  applications for grants will exceed the available appropriations 
  8.20  and the commissioner will be able to provide grants to only some 
  8.21  of the applicant development authorities. 
  8.22     (b) The commissioner shall make grants for sites that, in 
  8.23  the commissioner's judgment, provide the highest return in 
  8.24  public benefits for the public costs incurred and that meet all 
  8.25  of the requirements provided by law.  In making this judgment, 
  8.26  the commissioner shall consider the following factors: 
  8.27     (1) the number of jobs expected to be created and retained 
  8.28  after development of a qualified site and the average 
  8.29  anticipated wage levels of the jobs; 
  8.30     (2) the total amount of the requested assistance in 
  8.31  relation to the total full-time jobs which will result from the 
  8.32  redevelopment on the qualified site; 
  8.33     (3) the proportion of the requested assistance to the 
  8.34  estimated total predevelopment costs for a qualified site; 
  8.35     (4) the probability that a qualified site will be 
  8.36  redeveloped without use of public money in the reasonably 
  9.1   foreseeable future; 
  9.2      (5) the proportion of the estimated total costs of 
  9.3   contamination cleanup at a qualified site to the estimated total 
  9.4   of redevelopment costs; 
  9.5      (6) the availability of funds for contamination cleanup; 
  9.6      (7) the current unemployment rate in the municipality in 
  9.7   which the qualified site is located; 
  9.8      (8) the level of reliance on public assistance in the 
  9.9   municipality in which the qualified site is located, as measured 
  9.10  by the applicable county welfare rolls; and 
  9.11     (9) the extent of poverty in the municipality in which the 
  9.12  qualified site is located, as measured by percentage of 
  9.13  population living below the poverty line, percentage of children 
  9.14  under 18 years of age living below the poverty line, and 
  9.15  percentage of ethnic minorities living below the poverty line. 
  9.16     (c) The factors in paragraph (b) are not listed in order of 
  9.17  priority and the commissioner may weigh each factor, depending 
  9.18  upon the facts and circumstances, as the commissioner considers 
  9.19  appropriate.  The absence of a specific commitment from a third 
  9.20  party to construct improvements on a site does not make the site 
  9.21  ineligible for a grant.  The commissioner shall provide a 
  9.22  written statement of the supporting reasons for each grant. 
  9.23     Subd. 4.  [GRANT CONDITIONS.] A grant awarded under this 
  9.24  section is subject to the following conditions applicable to the 
  9.25  use of the site when fully developed: 
  9.26     (1) the site must be used for industrial purposes; 
  9.27     (2) at least 30 percent of the site must be covered by 
  9.28  buildings; 
  9.29     (3) the buildings constructed on the site must have an 
  9.30  average construction value of at least $30 per square foot if 
  9.31  the qualified site is located in the metropolitan area and $20 
  9.32  per square foot if the qualified site is located outside of the 
  9.33  metropolitan area; 
  9.34     (4) the site must provide at least one job for each 1,000 
  9.35  square feet of building space; and 
  9.36     (5) preference for employees hired to work at a business 
 10.1   located at the site must be given to qualified residents of the 
 10.2   municipality in which the site is located.  If at least 60 
 10.3   percent of the employees hired to work at a business are not 
 10.4   residents, then the business must certify to the municipality 
 10.5   that a sufficient number of qualified residents are not 
 10.6   available and agree to fill vacant positions with qualified 
 10.7   residents referred to the business by the municipality, until 
 10.8   the 60 percent level is attained. 
 10.9      Subd. 5.  [APPLICATION CYCLES; REPORTS.] (a) In making 
 10.10  grants, the commissioner shall establish semiannual application 
 10.11  deadlines in which grants will be authorized from all or part of 
 10.12  the available appropriations of money in the account. 
 10.13     (b) The commissioner shall annually report to the 
 10.14  legislature on the status of the predevelopment and job creation 
 10.15  projects undertaken under grants made under this program.  The 
 10.16  commissioner shall include in the annual report information on 
 10.17  the predevelopment and job creation activities undertaken for 
 10.18  the grants made in that and previous fiscal years.  The 
 10.19  commissioner shall make this report no later than 120 days after 
 10.20  the end of the fiscal year. 
 10.21     Sec. 7.  [APPROPRIATION.] 
 10.22     $13,500,000 in fiscal year 1998 and $8,500,000 in fiscal 
 10.23  year 1999 is appropriated from the general fund to the 
 10.24  commissioner of trade and economic development for transfer to 
 10.25  the contaminated site cleanup and predevelopment account and is 
 10.26  appropriated to the commissioner of the department of trade and 
 10.27  economic development for the purposes specified in Minnesota 
 10.28  Statutes, section 116J.551.  Of this amount, $7,000,000 for the 
 10.29  biennium is included in the department's base. 
 10.30                             ARTICLE 3
 10.31        INDIVIDUAL SEWAGE AND WASTEWATER TREATMENT PROGRAMS
 10.32     Section 1.  Minnesota Statutes 1996, section 116.18, 
 10.33  subdivision 3c, is amended to read: 
 10.34     Subd. 3c.  [INDIVIDUAL ON-SITE TREATMENT SYSTEMS PROGRAM.] 
 10.35  (a) Beginning in fiscal year 1989, up to ten percent of the 
 10.36  money to be awarded as grants under subdivision 3a in any single 
 11.1   fiscal year, up to a maximum of $1,000,000, may be set aside for 
 11.2   the award of grants by the ~~authority~~ agency to municipalities to 
 11.3   reimburse owners of individual on-site wastewater treatment 
 11.4   systems for a part of the costs of upgrading or replacing the 
 11.5   systems. 
 11.6      (b) An individual on-site treatment system is a wastewater 
 11.7   treatment system, or part thereof, that uses soil treatment and 
 11.8   disposal technology to treat 5,000 gallons or less of wastewater 
 11.9   per day from dwellings or other establishments. 
 11.10     (c) Municipalities may apply yearly for grants of up to 50 
 11.11  percent of the cost of replacing or upgrading individual on-site 
 11.12  treatment systems within their jurisdiction, up to a limit of 
 11.13  $5,000 per system or per connection to a cluster system.  Before 
 11.14  agency approval of the grant application, a municipality must 
 11.15  certify that:  
 11.16     (1) it has adopted and is enforcing the requirements of 
 11.17  Minnesota Rules governing individual sewage treatment systems; 
 11.18     (2) the existing systems for which application is made do 
 11.19  not conform to those rules, ~~were constructed prior to January 1,~~ 
 11.20  ~~1977~~ are at least 20 years old, do not serve seasonal 
 11.21  residences, and were not constructed with state or federal 
 11.22  funds; and 
 11.23     (3) the costs requested do not include administrative 
 11.24  costs, costs for improvements or replacements made before the 
 11.25  application is submitted to the ~~authority~~ agency unless it 
 11.26  pertains to the plan finally adopted, and planning and 
 11.27  engineering costs other than those for the individual site 
 11.28  evaluations and system design.  
 11.29     (d) The federal and state regulations regarding the award 
 11.30  of state and federal wastewater treatment grants do not apply to 
 11.31  municipalities or systems funded under this subdivision, except 
 11.32  as provided in this subdivision.  
 11.33     (e) ~~The authority shall award individual on-site wastewater~~ 
 11.34  ~~treatment grants to municipalities selected by the state~~ 
 11.35  ~~pollution control commissioner upon certification by the state~~ 
 11.36  ~~pollution control commissioner that the municipalities'~~ 
 12.1   ~~applications have been reviewed and approved in accordance with~~ 
 12.2   ~~this subdivision and agency rules adopted under paragraph (f).~~ 
 12.3      ~~(f)~~ The agency shall adopt permanent rules regarding 
 12.4   priorities, distribution of funds, payments, 
 12.5   inspections, procedures for administration of the agency's 
 12.6   duties, and other matters that the agency finds necessary for 
 12.7   proper administration of grants awarded under this subdivision.  
 12.8      ~~(g) The commissioner of trade and economic development may~~ 
 12.9   ~~adopt rules containing procedures for administration of the~~ 
 12.10  ~~authority's duties as set forth in paragraph (e).~~ 
 12.11     Sec. 2.  Minnesota Statutes 1996, section 446A.072, is 
 12.12  amended by adding a subdivision to read: 
 12.13     Subd. 4a.  [LOAN REPAYMENT; NEW DEVELOPMENT.] (a) For the 
 12.14  purposes of this subdivision, "loan" includes a loan that has 
 12.15  been forgiven under this section. 
 12.16     (b) A municipality that receives a supplemental assistance 
 12.17  loan under this section that later extends sewer service to 
 12.18  serve a residential, industrial, or commercial development that 
 12.19  is completed on unplatted land after March 1, 1996, or that is 
 12.20  on a lot whose plat was recorded after that date, must repay a 
 12.21  portion of the loan to the authority prior to providing the 
 12.22  sewer connection.  The commissioner shall calculate the amount 
 12.23  to be repaid by first determining the number of households 
 12.24  included in the extension financed by the original loan.  The 
 12.25  commissioner must then determine the present value of the 
 12.26  original loan amount.  The interest rate used to calculate the 
 12.27  present value must be equivalent to the interest rate on the 
 12.28  loan made to the municipality under section 446A.07 at the time 
 12.29  of the original supplemental assistance loan under this 
 12.30  section.  The commissioner must then divide the present value of 
 12.31  the loan by the number of households included in the original 
 12.32  loan.  For an extension to a residential development, the 
 12.33  repayment to the authority must be equal to the per household 
 12.34  amount calculated for the original loan multiplied by the number 
 12.35  of households in the proposed extension.  For an extension to a 
 12.36  commercial or industrial development, the commissioner shall 
 13.1   determine the repayment to the authority by using the per 
 13.2   household amount calculated for the original loan to calculate a 
 13.3   proportionally equivalent amount based on the projected 
 13.4   wastewater discharge from the proposed development.  The total 
 13.5   repayments to the authority under this paragraph may not exceed 
 13.6   the original amount of the supplemental assistance loan.  The 
 13.7   repayment must be processed as provided in subdivision 7. 
 13.8      Sec. 3.  [APPROPRIATION FOR COUNTYWIDE INDIVIDUAL SEWAGE 
 13.9   TREATMENT SYSTEM LOAN PROGRAMS.] 
 13.10     $10,000,000 in fiscal year 1998 and $5,000,000 in fiscal 
 13.11  year 1999 from the general fund is appropriated to the 
 13.12  commissioner of agriculture to provide loans to counties for 
 13.13  loans to property owners under Minnesota Statutes, section 
 13.14  115.57 or 17.117.  Individual counties may elect to apply for 
 13.15  and administer the loans pursuant to the agricultural best 
 13.16  management loan practices program established in Minnesota 
 13.17  Statutes, section 17.117, or under section 115.57.  Regardless 
 13.18  of the section a county applies under, the commissioner shall 
 13.19  review and rank allocation requests from counties pursuant to 
 13.20  the procedure and relevant criteria listed in Minnesota 
 13.21  Statutes, section 17.117, subdivision 9.  Loans made under 
 13.22  Minnesota Statutes, section 17.117 with funds appropriated under 
 13.23  this section must be used for site evaluation, design, 
 13.24  installation, repair, and replacement of individual sewage 
 13.25  treatment systems only.  Notwithstanding the eligibility 
 13.26  criteria in Minnesota Statutes, section 17.117, subdivision 1 
 13.27  and subdivision 4, paragraph (e), all private landowners in a 
 13.28  county may apply for loans made under this section.  Loans made 
 13.29  under Minnesota Statutes, section 115.57 may be used for any of 
 13.30  the purposes specified in that section.  Counties receiving 
 13.31  funds under this section must use the funds to administer loan 
 13.32  programs on a countywide basis.  This biennial appropriation is 
 13.33  a one-time appropriation and must not be included in the 
 13.34  agency's base. 
 13.35     Sec. 4.  [APPROPRIATION TO WASTEWATER INFRASTRUCTURE 
 13.36  FUNDING PROGRAMS.] 
 14.1      $12,500,000 is appropriated from the bond proceeds fund to 
 14.2   the public facilities authority for loans to eligible 
 14.3   municipalities under the wastewater infrastructure funding 
 14.4   program established in Minnesota Statutes, section 446A.072. 
 14.5      Sec. 5.  [BOND SALE.] 
 14.6      To provide the money appropriated in this act from the 
 14.7   state bond proceeds fund, the commissioner of finance, on 
 14.8   request of the governor, shall sell and issue bonds of the state 
 14.9   in an amount up to $12,500,000 in the manner, upon the terms, 
 14.10  and with the effect presented by Minnesota Statutes, sections 
 14.11  16A.631 to 16A.675, the Minnesota Constitution, article XI, 
 14.12  sections 4 to 7, and paragraph (b). 
 14.13     Sec. 6.  [APPROPRIATION; INDIVIDUAL SEWAGE TREATMENT SYSTEM 
 14.14  GRANTS.] 
 14.15     $1,500,000 in fiscal year 1998 and $1,500,000 in fiscal 
 14.16  year 1999 from the general fund is appropriated to the 
 14.17  commissioner of the pollution control agency for grants to 
 14.18  municipalities for the purposes specified in Minnesota Statutes, 
 14.19  section 116.18, subdivision 3c.  For purposes of grants awarded 
 14.20  under this section, the definition of "individual on-site 
 14.21  treatment system" in Minnesota Statutes, section 116.18, 
 14.22  subdivision 3c, paragraph (b), also includes an alternative 
 14.23  discharging sewage system serving one or more dwellings and 
 14.24  other establishments that discharges less than 10,000 gallons of 
 14.25  water per day and uses any treatment and disposal methods other 
 14.26  than subsurface soil treatment and disposal, as permitted under 
 14.27  Minnesota Statutes, section 115.58.  Up to ten percent of this 
 14.28  appropriation may be used for administration of the grants.  
 14.29  This biennial appropriation is a one-time appropriation and must 
 14.30  not be included in the agency's base. 
 14.31                             ARTICLE 4
 14.32        USED MOTOR OIL AND USED MOTOR OIL FILTER COLLECTION
 14.33     Section 1.  Minnesota Statutes 1996, section 115A.916, is 
 14.34  amended to read: 
 14.35     115A.916 [MOTOR VEHICLE FLUIDS AND FILTERS; PROHIBITIONS.] 
 14.36     (a) A person may not knowingly place motor oil, brake 
 15.1   fluid, power steering fluid, transmission fluid, motor oil 
 15.2   filters, or motor vehicle antifreeze: 
 15.3      (1) in solid waste or in a solid waste management facility 
 15.4   other than a recycling facility or a household hazardous waste 
 15.5   collection facility; 
 15.6      (2) in or on the land, unless approved by the agency; or 
 15.7      (3) in or on the waters of the state or in a stormwater or 
 15.8   wastewater collection or treatment system.  
 15.9      (b) For the purposes of this section, "antifreeze" does not 
 15.10  include small amounts of antifreeze contained in water used to 
 15.11  flush the cooling system of a vehicle after the antifreeze has 
 15.12  been drained and does not include deicer that has been used on 
 15.13  the exterior of a vehicle. 
 15.14     (c) For businesses that purchase or use an annual average 
 15.15  of over ~~150~~ 50 gallons of motor vehicle antifreeze per month for 
 15.16  on-site installation in motor vehicles, this section does not 
 15.17  apply to antifreeze placed in a wastewater collection system 
 15.18  that includes a publicly owned treatment works that is permitted 
 15.19  by the agency until December 31, ~~1996~~ 1997.  For businesses that 
 15.20  purchase or use an annual average of ~~150~~ 50 gallons or less of 
 15.21  motor vehicle antifreeze per month for on-site installation in 
 15.22  motor vehicles, this section does not apply to antifreeze placed 
 15.23  in a wastewater collection system that includes a publicly owned 
 15.24  treatment works that is permitted by the agency until ~~December~~ 
 15.25  ~~31, 1997~~ July 1, 1998. 
 15.26     (d) Notwithstanding paragraph (a), motor oil filters and 
 15.27  portions of motor oil filters may be processed at a permitted 
 15.28  mixed municipal solid waste resource recovery facility that 
 15.29  directly burns the waste if: 
 15.30     (1) the facility is subject to an industrial waste 
 15.31  management plan that addresses management of motor oil filters 
 15.32  and the owner or operator of the facility can demonstrate to the 
 15.33  satisfaction of the commissioner that the facility is in 
 15.34  compliance with that plan; 
 15.35     (2) the facility recovers ferrous metal after incineration 
 15.36  for recycling as part of its operation; and 
 16.1      (3) the motor oil filters are collected separately from 
 16.2   mixed municipal solid waste and are not combined with it except 
 16.3   for the purpose of incinerating the waste. 
 16.4      (e) The commissioner of the pollution control agency, 
 16.5   industry organizations representing automotive repair businesses 
 16.6   and antifreeze recycling businesses, and environmental 
 16.7   organizations shall work together to develop and promote 
 16.8   opportunities to recycle waste motor vehicle antifreeze and to 
 16.9   review the impact of alternative antifreeze disposal or 
 16.10  recycling methods on businesses and the environment. 
 16.11     Sec. 2.  Minnesota Statutes 1996, section 325E.10, 
 16.12  subdivision 2, is amended to read: 
 16.13     Subd. 2.  "Motor oil" means ~~petroleum based~~ oil used as a 
 16.14  lubricant or hydraulics in a transmission or internal combustion 
 16.15  engine motor vehicle as defined in section 168.011, subdivision 
 16.16  4. 
 16.17     Sec. 3.  Minnesota Statutes 1996, section 325E.10, is 
 16.18  amended by adding a subdivision to read: 
 16.19     Subd. 2a.  "Motor oil filter" means any filter used in 
 16.20  combination with motor oil. 
 16.21     Sec. 4.  Minnesota Statutes 1996, section 325E.10, is 
 16.22  amended by adding a subdivision to read: 
 16.23     Subd. 5.  "Used motor oil filter" means a motor oil filter 
 16.24  which through use, storage, or handling has become unsuitable 
 16.25  for its original purpose due to the presence of impurities or 
 16.26  loss of original properties. 
 16.27     Sec. 5.  Minnesota Statutes 1996, section 325E.11, is 
 16.28  amended to read: 
 16.29     325E.11 [COLLECTION FACILITIES; NOTICE.] 
 16.30     (a) Any person selling at retail or offering motor oil or 
 16.31  motor oil filters for retail sale in this state shall: 
 16.32     (1) post a notice indicating the nearest location where 
 16.33  used motor oil and used motor oil filters may be returned at no 
 16.34  cost for recycling or reuse, post a toll-free telephone number 
 16.35  that may be called by the public to determine a convenient 
 16.36  location, or post a listing of locations where used motor oil 
 17.1   and used motor oil filters may be returned at no cost for 
 17.2   recycling or reuse; or 
 17.3      (2) if the person is subject to section 325E.112, post a 
 17.4   notice informing customers purchasing motor oil or motor oil 
 17.5   filters of the location of the used motor oil and used motor oil 
 17.6   filter collection site established by the retailer in accordance 
 17.7   with section 325E.112 where used motor oil and used motor oil 
 17.8   filters may be returned at no cost. 
 17.9      (b) A notice under paragraph (a) shall be posted on or 
 17.10  adjacent to the motor oil and motor oil filter displays, be at 
 17.11  least 8-1/2 inches by 11 inches in size, contain the universal 
 17.12  recycling symbol with the following language: 
 17.13     (1) "It is illegal to put used oil and used motor oil 
 17.14  filters in the garbage."; 
 17.15     (2) "Recycle your used oil and used motor oil filters."; 
 17.16  and 
 17.17     (3)(i) "There is a free collection site here for your used 
 17.18  oil and used motor oil filters."; ~~or~~ 
 17.19     (ii) "There is a free collection site for used oil and used 
 17.20  motor oil filters located at (name of business and street 
 17.21  address)."; 
 17.22     (iii) "For the location of a free collection site for used 
 17.23  oil and used motor oil filters call (toll-free phone number)."; 
 17.24  or 
 17.25     (iv) "Here is a list of free collection sites for used oil 
 17.26  and used motor oil filters." 
 17.27     (c) The division of weights and measures under the 
 17.28  department of public service shall enforce compliance with this 
 17.29  section as provided in section 239.54.  The pollution control 
 17.30  agency shall enforce compliance with this section under sections 
 17.31  115.071 and 116.072 in coordination with the division of weights 
 17.32  and measures. 
 17.33     Sec. 6.  Minnesota Statutes 1996, section 325E.112, 
 17.34  subdivision 2, is amended to read: 
 17.35     Subd. 2.  [REIMBURSEMENT PROGRAM.] A contaminated used 
 17.36  motor oil reimbursement program is established to provide 
 18.1   ~~partial~~ reimbursement of the costs of disposing of contaminated 
 18.2   used motor oil.  In order to receive reimbursement, persons who 
 18.3   accept used motor oil from the public or parties that they have 
 18.4   contracted with to accept used motor oil must provide to the 
 18.5   commissioner of the pollution control agency proof of 
 18.6   contamination, information on methods the person used to prevent 
 18.7   the contamination of used motor oil at the site, a copy of the 
 18.8   billing for disposal costs incurred because of the contamination 
 18.9   and proof of payment, and a copy of the hazardous waste manifest 
 18.10  or shipping paper used to transport the waste.  The commissioner 
 18.11  shall reimburse a recipient of contaminated used motor oil ~~90~~ 
 18.12  100 percent of the costs of properly disposing of the 
 18.13  contaminated used motor oil.  The commissioner may not reimburse 
 18.14  persons who intentionally place contaminants or do not take 
 18.15  precautions to prevent contaminants from being placed in used 
 18.16  motor oil, or operate a private collection site that: 
 18.17     (1) is not publicly promotable or listed with the agency; 
 18.18     (2) does not accept up to five gallons of used motor oil 
 18.19  and five used motor oil filters per person per day without 
 18.20  charging a fee; or 
 18.21     (3) does not control access to the site during times when 
 18.22  the site is closed. 
 18.23     A person operating a collection site may refuse to accept 
 18.24  any used motor oil or used motor oil filter: 
 18.25     (1) that is from a business; 
 18.26     (2) that appears to be contaminated with antifreeze, 
 18.27  hazardous waste, or other materials that may increase the cost 
 18.28  of used motor oil management and disposal; or 
 18.29     (3) when the storage equipment for that particular waste is 
 18.30  temporarily filled. 
 18.31  Persons operating government collection sites are eligible for 
 18.32  reimbursement of the costs of disposing of contaminated used 
 18.33  motor oil.  Reimbursements made under this subdivision are 
 18.34  limited to the money available in the contaminated used motor 
 18.35  oil reimbursement account. 
 18.36     Sec. 7.  Laws 1996, chapter 351, section 2, is amended to 
 19.1   read: 
 19.2      Sec. 2.  [~~PLAN~~ RECYCLING GOALS AND ACTIONS.] 
 19.3      ~~(a) By September 1, 1996, an industry group representing~~ 
 19.4   ~~retailers and manufacturers in Minnesota that sell motor oil and~~ 
 19.5   ~~motor oil filters shall submit a list to the commissioner of the~~ 
 19.6   ~~pollution control agency of all existing current sites that~~ 
 19.7   ~~collect used motor oil, used motor oil filters, or both, from~~ 
 19.8   ~~the public, delineating which sites collect for free, that can~~ 
 19.9   ~~be publicly promoted.~~ 
 19.10     ~~(b) By September 1, 1996, an industry group representing~~ 
 19.11  ~~retailers and manufacturers that sell motor oil and motor oil~~ 
 19.12  ~~filters shall submit to the commissioner of the pollution~~ 
 19.13  ~~control agency a plan for a collection and recycling system for~~ 
 19.14  ~~used motor oil and used motor oil filters generated by the~~ 
 19.15  ~~public under which:~~ 
 19.16     ~~(1) at least 90 percent of state residents outside the~~ 
 19.17  ~~seven-county metropolitan area would have access to a free~~ 
 19.18  ~~collection site for used motor oil and used motor oil filters~~ 
 19.19  ~~within 25 miles of their residences;~~ 
 19.20     (~~2) at least 90 percent of state residents within the~~ 
 19.21  ~~seven-county metropolitan area and state residents of cities~~ 
 19.22  ~~with populations of greater than 2,000 residents would have~~ 
 19.23  ~~access to a free collection site for used motor oil and used~~ 
 19.24  ~~motor oil filters within five miles of their residences; and~~ 
 19.25     ~~(3) at least one free collection site for used motor oil~~ 
 19.26  ~~and used motor oil filters generated by the public would be~~ 
 19.27  ~~located in each county.~~ 
 19.28     ~~(c) The plan required in paragraph (b) must include:~~ 
 19.29     ~~(1) an explanation of the proposed system for collecting~~ 
 19.30  ~~and recycling used motor oil and used motor oil filters;~~ 
 19.31     ~~(2) a clear assignment of responsibility and accountability~~ 
 19.32  ~~for implementation;~~ 
 19.33     ~~(3) a strategy for educating the parties responsible for~~ 
 19.34  ~~implementing the plan;~~ 
 19.35     ~~(4) a strategy for educating the public on how to recycle~~ 
 19.36  ~~used motor oil and used motor oil filters;~~ 
 20.1      ~~(5) a description of government's role, if any; and~~ 
 20.2      ~~(6) recommendations for legislation, if necessary.~~ 
 20.3      ~~(d) The plan must be implemented by June 1, 1997, and the~~ 
 20.4   ~~requirements in paragraph (b), clauses (1) to (3), must be met~~ 
 20.5   ~~by December 31, 1997.  The industry group must also submit a~~ 
 20.6   ~~list of sites that collect used motor oil and used motor oil~~ 
 20.7   ~~filters from the public, specifying those sites that collect~~ 
 20.8   ~~used motor oil and used motor filters for free, to the pollution~~ 
 20.9   ~~control agency by December 31, 1997.  The agency must be~~ 
 20.10  ~~informed by the industry group when sites begin and cease to~~ 
 20.11  ~~collect, or charge for the collection of, used motor oil and~~ 
 20.12  ~~used motor oil filters from the public, in order to allow the~~ 
 20.13  ~~agency to provide the public with accurate information regarding~~ 
 20.14  ~~collection sites.~~ 
 20.15     ~~(e) The industry group and the agency shall monitor the~~ 
 20.16  ~~effects of the collection system set forth in the plan required~~ 
 20.17  ~~in paragraph (b) to determine whether the requirements in~~ 
 20.18  ~~clauses (1) to (3) of that paragraph have been met.  By November~~ 
 20.19  ~~1, 1998, the industry group shall submit information to the~~ 
 20.20  ~~agency on the amount of used oil and the number of used oil~~ 
 20.21  ~~filters collected.~~  
 20.22     Subdivision 1.  (a) The following recycling or reuse goals 
 20.23  shall be considered met if the actions in this subdivision are 
 20.24  initiated by the identified parties on or before September 1, 
 20.25  1997, and are fully completed by December 31, 1998.  
 20.26  Additionally, the goals in paragraph (b) must be met in at least 
 20.27  50 percent of counties by December 31, 1997; 75 percent by June 
 20.28  1, 1998; and 100 percent by December 31, 1998. 
 20.29     (b) Motor oil and motor oil filter manufacturers and 
 20.30  retailers shall ensure that: 
 20.31     (1) at least 90 percent of residents within the 
 20.32  seven-county metropolitan area and residents of a city or town 
 20.33  with a population greater than 1,500 have access to a free 
 20.34  nongovernment collection site for used motor oil and used motor 
 20.35  oil filters within five miles of their residences; and 
 20.36     (2) at least one free nongovernment collection site for 
 21.1   used motor oil and used motor oil filters generated by the 
 21.2   public would be located in each county. 
 21.3      (c) Motor oil and motor oil filter manufacturers and 
 21.4   retailers shall inform the public about environmental problems 
 21.5   associated with improper disposal of used motor oil and used 
 21.6   motor oil filters and proper disposal practices for used motor 
 21.7   oil and used motor oil filters.  At a minimum, this shall 
 21.8   include public service announcements designed to reach residents 
 21.9   of the state that generate used motor oil and used motor oil 
 21.10  filters. 
 21.11     (d) The commissioner of the pollution control agency shall, 
 21.12  by December 31, 1997, and at least annually thereafter or more 
 21.13  frequently if deemed necessary, request motor oil and motor oil 
 21.14  filter manufacturers and retailers, persons who haul used motor 
 21.15  oil and used motor oil filters, and nongovernment persons who 
 21.16  accept used motor oil and used motor oil filters from the public 
 21.17  to provide an updated list of all existing sites that collect 
 21.18  used motor oil, used motor oil filters, or both, from the 
 21.19  public, delineating for public promotion which sites collect for 
 21.20  free.  The commissioner shall use this information to determine 
 21.21  whether the parties identified in paragraph (b) have met the 
 21.22  goals listed in that paragraph.  A collection site operated by 
 21.23  the state or a political subdivision, as defined in Minnesota 
 21.24  Statutes, section 115A.03, subdivision 24, may be counted 
 21.25  towards meeting recycling goals, provided that the parties 
 21.26  responsible for meeting the goals of this subdivision 
 21.27  voluntarily reimburse the state or political subdivision for all 
 21.28  of the costs at that collection site that are associated with 
 21.29  used motor oil and used motor oil filter recycling.  Persons who 
 21.30  accept used motor oil and used motor oil filters from the public 
 21.31  shall cooperate with manufacturers and retailers of motor oil 
 21.32  and motor oil filters to inform the agency within ten days of 
 21.33  initiating or ceasing to collect used motor oil or used motor 
 21.34  oil filters from the public.  The information shall be provided 
 21.35  in a form and manner prescribed by the commissioner. 
 21.36     (e) Motor oil filter manufacturers shall disclose to 
 22.1   retailers whether lead has been intentionally introduced in 
 22.2   manufacturing, and retailers shall not knowingly sell motor oil 
 22.3   filters containing lead intentionally introduced in 
 22.4   manufacturing. 
 22.5      Subd. 2.  The commissioner of the pollution control agency 
 22.6   may appoint an advisory group of diverse interests to assist the 
 22.7   agency with experimentation with various approaches to public 
 22.8   education, financial incentives, waste management, and other 
 22.9   issues that might affect the effectiveness of recycling 
 22.10  efforts.  The commissioner may request parties responsible for 
 22.11  meeting the recycling goals in subdivision 1 to voluntarily pay 
 22.12  for some of the experimentation costs.  The existence of this 
 22.13  advisory group in no way relieves the parties identified in 
 22.14  subdivision 1 of responsibility for meeting the goals listed in 
 22.15  that subdivision.  The commissioner of the pollution control 
 22.16  agency shall appoint an advisory group chair. 
 22.17     ~~(f)~~ Subd. 3.  By January 15, 1999, the commissioner of the 
 22.18  pollution control agency shall report to the environment and 
 22.19  natural resources committees of the senate and the house of 
 22.20  representatives on the amount of used motor oil and used motor 
 22.21  oil filters being recycled and whether the ~~requirements~~ goals in 
 22.22  ~~paragraph (b), clauses (1) to (3),~~ subdivision 1 have been met 
 22.23  and recommend whether the mandate for retailers of motor oil and 
 22.24  filters described in Minnesota Statutes, section 325E.112, 
 22.25  subdivision 1, is needed to achieve the recycling goals. 
 22.26     Sec. 8.  [EFFECTIVE DATE.] 
 22.27     This article is effective the day following final enactment.