2002 Minnesota Statutes

     446A.072 Wastewater infrastructure funding program. 

    Subdivision 1.    Establishment of program.  The 
 authority will establish a wastewater infrastructure funding 
 program to provide supplemental assistance to municipalities 
 receiving funding through the water pollution control revolving 
 loan program or the United States Department of Agriculture 
 Rural Economic and Community Development's (USDA/RECD) Water and 
 Waste Disposal Loans and Grants program for the design and 
 planning, improvements to, and construction of municipal 
 wastewater treatment systems.  The purpose of the program is to 
 assist municipalities demonstrating financial need in building 
 cost-efficient projects to address existing environmental or 
 public health problems.  To implement the program, the authority 
 shall establish a wastewater infrastructure fund to provide 
 grants and loans for the purposes authorized under title VI of 
 the Federal Water Pollution Control Act.  The fund shall be 
 credited with all investment income from the fund and all 
 repayments of loans, grants, and penalties. 

    Subd. 2. Repealed, 2002 c 393 s 91 

    Subd. 3.    Program administration.  (a) The authority 
 shall provide supplemental assistance, as provided in 
 subdivision 5a to municipalities: 

    (1) whose projects are listed on the agency's project 
 priority list; 

    (2) that demonstrate their projects are a cost-effective 
 solution to an existing environmental or public health problem; 
 and 

    (3) whose projects are approved by the USDA/RECD or 
 certified by the commissioner of the agency. 

    (b) For a municipality receiving grant funding from the 
 USDA/RECD, applications must be made to the USDA/RECD with 
 additional information submitted to the authority as required by 
 the authority.  Eligible project costs and affordability 
 criteria shall be determined by the USDA/RECD. 

    (c) For a municipality not receiving grant funding from the 
 USDA/RECD, application must be made to the authority on forms 
 prescribed by the authority for the water pollution control 
 revolving fund program with additional information as required 
 by the authority.  In accordance with section 116.182, the 
 agency shall: 

    (1) calculate the essential project component percentage 
 which must be multiplied by the total project cost to determine 
 the eligible project cost; and 

    (2) review and certify approved projects to the authority. 

    (d) At the time funds are appropriated under this section, 
 the authority shall reserve supplemental assistance for projects 
 in order of their rankings on the agency's project priority list 
 and in an amount based on their most recent cost estimates 
 submitted to the authority or the as-bid costs, whichever is 
 less. 

    Subd. 4. Repealed, 2002 c 393 s 91 

    Subd. 4a. Repealed, 1998 c 404 s 84 

    Subd. 5. Repealed, 2002 c 393 s 91 

    Subd. 5a.    Type and amount of assistance.  (a) For a 
 municipality receiving grant funding from the USDA/RECD, the 
 authority shall provide assistance in the form of a grant of up 
 to one-half of the eligible grant amount determined by 
 USDA/RECD.  A municipality may not receive a grant under this 
 paragraph for more than $4,000,000 or $15,000 per existing 
 connection, whichever is less, unless specifically approved by 
 law.  In the case of a sanitary district or other 
 multijurisdictional project for which the USDA/RECD is unable to 
 fully fund up to one-half of the eligible grant amount, the 
 authority may provide up to an additional $1,000,000 for each 
 additional municipality participating up to a maximum of 
 $8,000,000 or $15,000 per existing connection, whichever is 
 less, but not to exceed the maximum grant level determined by 
 the USDA/RECD as needed to keep the project affordable. 

    (b) For a municipality not receiving grant funding from the 
 USDA/RECD, the authority shall provide assistance in the form of 
 a loan for the eligible project costs that exceed five percent 
 of the market value of properties in the project service area.  
 A municipality may not receive a loan under this paragraph for 
 more than $4,000,000 or $15,000 per existing connection, 
 whichever is less, unless specifically approved by law.  In the 
 case of a sanitary district or other multijurisdictional 
 project, the authority may provide a loan under this paragraph 
 for up to an additional $1,000,000 for each additional 
 municipality participating up to a maximum of $8,000,000 or 
 $15,000 per existing connection, whichever is less, unless 
 specifically approved by law.  A loan under this paragraph must 
 bear no interest, must be repaid as provided in subdivision 7, 
 and must only be provided in conjunction with a loan from the 
 water pollution control revolving fund under section 446A.07. 

    (c) Notwithstanding the limits in paragraphs (a) and (b), 
 for a municipality receiving supplemental assistance under this 
 section after January 1, 2002, if the authority determines that 
 the municipality's construction and installation costs are 
 significantly increased due to geological conditions of 
 crystalline bedrock or karst areas and discharge limits that are 
 more stringent than secondary treatment, the authority shall 
 provide assistance in the form of half grant and half loan.  
 Assistance from the authority may not be more than $25,000 per 
 existing connection.  Any additional grant amount received for 
 the same project must be used to reduce the amount of the 
 municipality's loan from the water pollution control revolving 
 fund that exceeds five percent of the market value of properties 
 in the project service area. 

    Subd. 5b.    Special assessment deferral.  A 
 municipality receiving a loan under subdivision 5a that levies 
 special assessments to repay the loan under subdivision 5a or 
 section 446A.07 may defer payment of such assessments under the 
 provisions of sections 435.193 to 435.195. 

    Subd. 6.    Disbursements.  Disbursements of grants or 
 loans awarded under this section by the authority to recipients 
 must be made for eligible project costs as incurred by the 
 recipients, and must be made by the authority in accordance with 
 the project financing agreement and applicable state and federal 
 laws and rules governing the payments. 

    Subd. 7.    Loan repayments.  A municipality receiving a 
 loan under this section shall repay the loan in semiannual 
 payment amounts determined by the authority.  The payment amount 
 must be based on the average payments on the municipality's 
 water pollution control revolving fund loan or, if greater, the 
 minimum amount required to fully repay the loan by the maturity 
 date.  Payments must begin within one year of the date of the 
 municipality's final payment on the water pollution control 
 revolving fund loan.  The maturity date of the loan must be no 
 later than 20 years from the date of the first payment. 

    Subd. 8.    Eligibility.  A municipality is eligible for 
 assistance under this section only after grant funding from 
 other sources has been applied for, obtained, rejected, or the 
 authority has determined that the potential funding is unlikely. 

    Subd. 9.    Loan limitation.  Supplemental assistance 
 may not be used to reduce the sewer service charges of a 
 significant wastewater contributor, or a single user that has 
 caused the need for the project or whose current or projected 
 flow and load exceed one-half of the current wastewater 
 treatment plant's capacity. 

    Subd. 10. Repealed, 2002 c 393 s 91 

    Subd. 11.    Report on needs.  By February 1 of each 
 even-numbered year, the authority, in conjunction with the 
 pollution control agency, shall prepare a report to the finance 
 division of the senate environment and natural resources 
 committee and the house environment and natural resources 
 finance committee on wastewater funding assistance needs of 
 municipalities under this section. 

    Subd. 12.    System replacement fund.  Each municipality 
 receiving a loan under this section shall establish a system 
 replacement fund and shall annually deposit a minimum of $.50 
 per 1,000 gallons of flow for major rehabilitation, expansion, 
 or replacement of the treatment system at the end of its useful 
 life.  Money must remain in the account, for the life of the 
 loan unless use of the fund is approved in writing by the 
 authority for major rehabilitation, expansion, or replacement of 
 the treatment system.  By March 1 each year during the life of 
 the loan, each municipality shall submit a report to the 
 authority regarding the amount deposited and the fund balance 
 for the prior calendar year.  Failure to comply with the 
 requirements of this subdivision shall result in the authority 
 assessing a penalty fee to the municipality equal to one percent 
 of the outstanding loan balance for each year of noncompliance.  
 Failure to make the required deposit or pay the penalty fee as 
 required constitutes a default on the loan. 

    Subd. 13. Repealed, 2002 c 393 s 91 

    Subd. 14.    Consistency with land use plans.  A 
 municipality applying for a project in an unsewered area shall 
 include in its application to the authority a certification from 
 the county in which the project is located that: 

    (1) the project is consistent with the county comprehensive 
 land use plan, if the county has adopted one; 

    (2) the project is consistent with the county water plan, 
 if the county has adopted one; and 

    (3) the county has adopted specific land use ordinances or 
 controls so as to meet or exceed the requirements of Minnesota 
 Rules, part 7080.0305. 

    HIST: 1996 c 463 s 45; 1997 c 246 s 18; 1998 c 404 s 50-52; 
 1999 c 223 art 2 s 48; 2000 c 492 art 1 s 60; 2002 c 393 s 65-75