2007 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 governmental units receiving
funding through the clean water revolving fund 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
governmental units 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    Subd. 2.[Repealed, 2002 c 393 s 91]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 governmental units:
(1) whose projects are listed on the Pollution Control 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
Pollution Control Agency.
(b) For a governmental unit 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 governmental unit not receiving grant funding from the USDA/RECD, application
must be made to the authority on forms prescribed by the authority for the clean water revolving
fund program with additional information as required by the authority. In accordance with section
116.182, the Pollution Control 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 Pollution Control 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 governmental unit 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 governmental unit
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 governmental unit 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 governmental unit 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, less the amount of any
other grant funding received by the governmental unit for the project. A governmental unit
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 clean water revolving fund
under section 446A.07.
(c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental unit receiving
supplemental assistance under this section after January 1, 2002, if the authority determines
that the governmental unit'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 governmental unit'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 governmental unit 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. Notwithstanding the limitations set forth in section 475.54,
subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund
redemptions of the loans under this section. A governmental unit 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 governmental unit's clean water
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 governmental unit's final
payment on the clean water revolving fund loan. The final maturity date of the loan under this
section must be no later than 20 years from the date of the first payment on the loan under this
section and no later than 40 years from the date of the first payment on the clean water revolving
fund loan.
    Subd. 8. Eligibility. A governmental unit is eligible for assistance under this section only
after applying for grant funding from other sources and funding has been 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 governmental
units under this section.
    Subd. 12. System replacement fund. Each governmental unit receiving a loan or grant
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 or expansion of the treatment system,
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 from the authority or USDA/RECD, 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 recipient 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 recipient equal to one percent of the supplemental assistance amount
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 governmental unit 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.
History: 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; 2006 c 281 art 4 s 24; 2007 c 96 art 1 s 6