1.1                          A bill for an act 
  1.2             relating to state departments; abolishing the 
  1.3             pollution control agency; creating the department of 
  1.4             environmental protection; amending Minnesota Statutes 
  1.5             1994, sections 15.01; 115C.03, subdivision 7a; 116.02, 
  1.6             subdivisions 1, 2, 3, 4, and by adding subdivisions; 
  1.7             116.03, subdivisions 1 and 2; 116C.69, subdivision 3; 
  1.8             and 514.673, subdivision 3; repealing Minnesota 
  1.9             Statutes 1994, sections 116.02, subdivision 5; and 
  1.10            116.03, subdivision 6. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 15.01, is 
  1.13  amended to read: 
  1.14     15.01 [DEPARTMENTS OF THE STATE.] 
  1.15     The following agencies are designated as the departments of 
  1.16  the state government:  the department of administration; the 
  1.17  department of agriculture; the department of commerce; the 
  1.18  department of corrections; the department of education; the 
  1.19  department of economic security; the department of trade and 
  1.20  economic development; the department of environmental 
  1.21  protection; the department of finance; the department of health; 
  1.22  the department of human rights; the department of labor and 
  1.23  industry; the department of military affairs; the department of 
  1.24  natural resources; the department of employee relations; the 
  1.25  department of public safety; the department of public service; 
  1.26  the department of human services; the department of revenue; the 
  1.27  department of transportation; the department of veterans 
  1.28  affairs; and their successor departments. 
  2.1      Sec. 2.  Minnesota Statutes 1994, section 115C.03, 
  2.2   subdivision 7a, is amended to read: 
  2.3      Subd. 7a.  [REVIEW OF AGENCY EMPLOYEE DECISIONS.] A person 
  2.4   aggrieved by a decision made by an employee of the agency 
  2.5   relating to the need for or implementation of a corrective 
  2.6   action may seek review of the decision by the commissioner.  An 
  2.7   application for review must state with specificity the decision 
  2.8   for which review is sought, the name of the leak site, the leak 
  2.9   number, the date the decision was made, the agency employee who 
  2.10  made the decision, the ramifications of the decision, and any 
  2.11  additional pertinent information.  The commissioner shall review 
  2.12  the application and schedule a time, date, and place for the 
  2.13  aggrieved person to explain the grievance and for the agency 
  2.14  employee to explain the decision under review.  The commissioner 
  2.15  shall issue a decision either sustaining or reversing the 
  2.16  decision of the employee.  ~~The aggrieved person may appeal the~~ 
  2.17  ~~commissioner's decision to the pollution control agency board in~~ 
  2.18  ~~accordance with Minnesota Rules, part 7000.0500, subpart 6.~~ 
  2.19     Sec. 3.  Minnesota Statutes 1994, section 116.02, 
  2.20  subdivision 1, is amended to read: 
  2.21     Subdivision 1.  ~~A pollution control agency, designated as~~ 
  2.22  ~~the Minnesota pollution control agency,~~ An environmental 
  2.23  protection citizen board is hereby created.  The ~~agency~~ board 
  2.24  shall consist of nine members appointed by the governor, by and 
  2.25  with the advice and consent of the senate.  The board shall 
  2.26  include one member from each congressional district, and one 
  2.27  member selected at-large.  One of such members shall be a person 
  2.28  knowledgeable in the field of agriculture. 
  2.29     Sec. 4.  Minnesota Statutes 1994, section 116.02, 
  2.30  subdivision 2, is amended to read: 
  2.31     Subd. 2.  The membership terms, compensation, removal of 
  2.32  members, and filling of vacancies on the ~~agency~~ board shall be 
  2.33  as provided in section 15.0575. 
  2.34     Sec. 5.  Minnesota Statutes 1994, section 116.02, 
  2.35  subdivision 3, is amended to read: 
  2.36     Subd. 3.  The membership of the ~~pollution control agency~~ 
  3.1   environmental protection citizen board shall be broadly 
  3.2   representative of the skills and experience necessary 
  3.3   to ~~effectuate the policy of sections 116.01 to 116.075~~ carry out 
  3.4   the duties in this section, except that no member appointed 
  3.5   shall be an officer or employee of the state or federal 
  3.6   government.  Only two members at one time may be officials or 
  3.7   employees of a municipality or any governmental subdivision, but 
  3.8   neither may be a member ex officio or otherwise on the 
  3.9   management board of a municipal sanitary sewage disposal system. 
  3.10     Sec. 6.  Minnesota Statutes 1994, section 116.02, 
  3.11  subdivision 4, is amended to read: 
  3.12     Subd. 4.  The ~~agency~~ board shall elect a chair and such 
  3.13  other officers as it deems necessary. 
  3.14     Sec. 7.  Minnesota Statutes 1994, section 116.02, is 
  3.15  amended by adding a subdivision to read: 
  3.16     Subd. 6.  [MATTERS FOR BOARD CONSIDERATION.] The 
  3.17  commissioner shall seek the advice of the board on the matters 
  3.18  listed in clauses (1) to (3).  The commissioner may refer 
  3.19  matters to the board at any point in the decision-making process 
  3.20  prior to final action, including any time before a draft permit 
  3.21  or rule has been written.  The commissioner may return to the 
  3.22  board later in the decision-making process for additional advice 
  3.23  on the same matter, but is not required to do so.  The matters 
  3.24  on which the commissioner must seek advice of the board are: 
  3.25     (1) permit actions authorizing new construction or 
  3.26  modifications if: 
  3.27     (i) the new construction or modification would be subject 
  3.28  to a mandatory requirement to prepare an environmental impact 
  3.29  statement under rules adopted by the environmental quality board 
  3.30  under section 116D.04; and 
  3.31     (ii) the commissioner determines that the public would have 
  3.32  a substantial interest in the new construction or modification; 
  3.33     (2) the proposal of rules for which the commissioner 
  3.34  decides to proceed directly to a public hearing under section 
  3.35  14.14, subdivision 1; and 
  3.36     (3) any other matter for which the commissioner determines 
  4.1   that advice from the board would be helpful due to the matter's 
  4.2   broad policy implications or potential environmental 
  4.3   significance, or the public's substantial interest in the matter.
  4.4      Sec. 8.  Minnesota Statutes 1994, section 116.02, is 
  4.5   amended by adding a subdivision to read: 
  4.6      Subd. 7.  [DUTIES AND POWERS OF BOARD.] (a) The board shall 
  4.7   deliver its advice to the commissioner in writing within the 
  4.8   deadline established by the commissioner.  The commissioner 
  4.9   shall not establish a deadline of less than 30 days from the 
  4.10  time the commissioner formally refers the matter and supporting 
  4.11  information to the board.  The commissioner shall allow more 
  4.12  than 30 days for the board to respond if the commissioner 
  4.13  determines that additional time is necessary for the board to 
  4.14  properly consider the matter and does not result in undue delay 
  4.15  of the final decision, or if all interested persons agree that 
  4.16  the board should have additional time to consider the matter.  
  4.17  The board's advice shall be in the form of written findings and 
  4.18  conclusions, with specific recommendations and supporting 
  4.19  rationale.  The board's advice shall be based on the public 
  4.20  record before it. 
  4.21     (b) The board may hold public informational meetings for 
  4.22  the purpose of gathering information and opinions about matters 
  4.23  referred to it.  Such meetings, and all other meetings of the 
  4.24  board, are subject to the Minnesota open meetings law, section 
  4.25  471.705. 
  4.26     Sec. 9.  Minnesota Statutes 1994, section 116.02, is 
  4.27  amended by adding a subdivision to read: 
  4.28     Subd. 8.  [CONSIDERATION OF BOARD'S ADVICE.] The 
  4.29  commissioner shall consider the board's advice prior to making a 
  4.30  final decision on a matter referred to the board under 
  4.31  subdivision 6.  Prior to making a decision that differs from 
  4.32  what the board has advised, the commissioner shall identify in 
  4.33  writing the specific areas of disagreement with the board's 
  4.34  advice and explain the reasons for making a different decision. 
  4.35     Sec. 10.  Minnesota Statutes 1994, section 116.02, is 
  4.36  amended by adding a subdivision to read: 
  5.1      Subd. 9.  [RULEMAKING AUTHORITY.] The commissioner shall 
  5.2   adopt rules governing procedures before the board. 
  5.3      Sec. 11.  Minnesota Statutes 1994, section 116.03, 
  5.4   subdivision 1, is amended to read: 
  5.5      Subdivision 1.  ~~(a)~~ The ~~office of commissioner of the~~ 
  5.6   ~~pollution control agency is created and~~ department is under the 
  5.7   supervision and control of the commissioner, who is appointed by 
  5.8   the governor under the provisions of section 15.06. 
  5.9      ~~(b) The commissioner may appoint a deputy director and an~~ 
  5.10  ~~assistant commissioner who shall be in the unclassified service.~~ 
  5.11     Sec. 12.  Minnesota Statutes 1994, section 116.03, 
  5.12  subdivision 2, is amended to read: 
  5.13     Subd. 2.  The commissioner shall organize the agency and 
  5.14  employ such assistants and other officers, employees and agents 
  5.15  as the commissioner may deem necessary to discharge the 
  5.16  functions of the ~~commissioner's office~~ department, define the 
  5.17  duties of such officers, employees and agents, and delegate to 
  5.18  them any of the commissioner's powers, duties, and 
  5.19  responsibilities, subject to the commissioner's control and 
  5.20  under such conditions as the commissioner may prescribe.  The 
  5.21  commissioner may also contract with persons, firms, 
  5.22  corporations, the federal government and any agency or 
  5.23  instrumentality thereof, ~~the water research center of the~~ 
  5.24  ~~University of Minnesota or any other instrumentality of such~~ 
  5.25  ~~university, for doing any of the work of the commissioner's~~ 
  5.26  ~~office, and none of the provisions of chapter 16, relating to~~ 
  5.27  ~~bids, shall apply to such contracts.  All personnel employed and~~ 
  5.28  ~~all contracts entered into pursuant to this subdivision shall be~~ 
  5.29  ~~subject to the approval of the pollution control agency.~~  
  5.30  ~~Agreements to exercise delegated powers shall be by written~~ 
  5.31  ~~order filed with the secretary of state.  An employee of the~~ 
  5.32  ~~state commissioner of health engaged in environmental sanitation~~ 
  5.33  ~~work may transfer to the pollution control agency with the~~ 
  5.34  ~~approval of the commissioner.  Under such a transfer the~~ 
  5.35  ~~employee shall be assigned to a position of similar~~ 
  5.36  ~~responsibility and pay without loss of seniority, vacation, sick~~ 
  6.1   ~~leave, or other benefits under the state civil service act~~ for 
  6.2   doing any of the work of the department. 
  6.3      Sec. 13.  Minnesota Statutes 1994, section 116C.69, 
  6.4   subdivision 3, is amended to read: 
  6.5      Subd. 3.  [FUNDING; ASSESSMENT.] The board shall finance 
  6.6   its base line studies, general environmental studies, 
  6.7   development of criteria, inventory preparation, monitoring of 
  6.8   conditions placed on site certificates and construction permits, 
  6.9   and all other work, other than specific site and route 
  6.10  designation, from an assessment made quarterly, at least 30 days 
  6.11  before the start of each quarter, by the board against all 
  6.12  utilities with annual retail kilowatt-hour sales greater than 
  6.13  4,000,000 kilowatt-hours in the previous calendar year.  
  6.14     Until June 30, 1992, the assessment shall also include an 
  6.15  amount sufficient to cover 60 percent of the costs to the 
  6.16  pollution control agency of achieving, maintaining, and 
  6.17  monitoring compliance with the acid deposition control standard 
  6.18  adopted under sections 116.42 to 116.45, reprinting 
  6.19  informational booklets on acid rain, and costs for additional 
  6.20  research on the impacts of acid deposition on sensitive areas 
  6.21  published under section 116.44, subdivision 1.  The commissioner 
  6.22  of the pollution control agency must prepare a work plan and 
  6.23  budget and submit them annually ~~by June 30 to the pollution~~ 
  6.24  ~~control agency board.  The agency board must take public~~ 
  6.25  ~~testimony on the budget and work plan.  After the agency board~~ 
  6.26  ~~approves the work plan and budget they must be submitted~~ 
  6.27  ~~annually~~ to the legislative water commission for review and 
  6.28  recommendation before an assessment is levied.  Each share shall 
  6.29  be determined as follows:  (1) the ratio that the annual retail 
  6.30  kilowatt-hour sales in the state of each utility bears to the 
  6.31  annual total retail kilowatt-hour sales in the state of all 
  6.32  these utilities, multiplied by 0.667, plus (2) the ratio that 
  6.33  the annual gross revenue from retail kilowatt-hour sales in the 
  6.34  state of each utility bears to the annual total gross revenues 
  6.35  from retail kilowatt-hour sales in the state of all these 
  6.36  utilities, multiplied by 0.333, as determined by the board.  The 
  7.1   assessment shall be credited to the special revenue fund and 
  7.2   shall be paid to the state treasury within 30 days after receipt 
  7.3   of the bill, which shall constitute notice of said assessment 
  7.4   and demand of payment thereof.  The total amount which may be 
  7.5   assessed to the several utilities under authority of this 
  7.6   subdivision shall not exceed the sum of the annual budget of the 
  7.7   board for carrying out the purposes of this subdivision plus 60 
  7.8   percent of the annual budget of the pollution control agency for 
  7.9   achieving, maintaining, and monitoring compliance with the acid 
  7.10  deposition control standard adopted under sections 116.42 to 
  7.11  116.45, for reprinting informational booklets on acid rain, and 
  7.12  for costs for additional research on the impacts of acid 
  7.13  deposition on sensitive areas published under section 116.44, 
  7.14  subdivision 1.  The assessment for the second quarter of each 
  7.15  fiscal year shall be adjusted to compensate for the amount by 
  7.16  which actual expenditures by the board and the pollution control 
  7.17  agency for the preceding fiscal year were more or less than the 
  7.18  estimated expenditures previously assessed. 
  7.19     Sec. 14.  Minnesota Statutes 1994, section 514.673, 
  7.20  subdivision 3, is amended to read: 
  7.21     Subd. 3.  [APPROVAL BY ~~AGENCY OR~~ PETROLEUM TANK RELEASE 
  7.22  COMPENSATION BOARD.] (a) The commissioner may not file an 
  7.23  environmental lien notice until ~~the agency board for cleanup~~ 
  7.24  ~~action expenses incurred under chapter 115B, or~~ the petroleum 
  7.25  tank release compensation board for cleanup action expenses 
  7.26  incurred under chapter 115C, the person referred to in section 
  7.27  514.672, subdivision 1, and each record owner and mortgagee of 
  7.28  the real property have been notified in writing of the 
  7.29  commissioner's intention to file the lien notice and the 
  7.30  requirements for filing the lien under paragraph (b) have been 
  7.31  met. 
  7.32     (b) By 30 days after receiving notification from the 
  7.33  commissioner under paragraph (a), the ~~agency board or~~ petroleum 
  7.34  tank release compensation board, after notice and opportunity 
  7.35  for the person referred to in section 514.672, subdivision 1, to 
  7.36  appear before the ~~appropriate~~ board, shall approve or disapprove 
  8.1   of the filing of the lien by the commissioner.  If the 
  8.2   appropriate board disapproves of the filing, the lien may not be 
  8.3   filed.  If the ~~appropriate~~ board approves of the filing or~~, in~~ 
  8.4   ~~the case of the petroleum tank release compensation board,~~ takes 
  8.5   no action on the matter within the 30-day period, the 
  8.6   commissioner may file the lien notice.  
  8.7      Sec. 15.  [TRANSITIONAL APPOINTMENTS.] 
  8.8      Appointments and reappointments to the board of 
  8.9   environmental protection shall be made to achieve compliance 
  8.10  with the location requirement of Minnesota Statutes, section 
  8.11  116.02, subdivision 1, within four years of the effective date 
  8.12  of this section. 
  8.13     Sec. 16.  [INSTRUCTION TO REVISOR.] 
  8.14     The revisor of statutes, in consultation with the 
  8.15  department of environmental protection, shall delete the term 
  8.16  "pollution control agency" or "agency" where it refers to the 
  8.17  pollution control agency and replace it with "commissioner," 
  8.18  "department," or similar words, as appropriate, in Minnesota 
  8.19  Statutes and Minnesota Rules; and shall delete references to the 
  8.20  pollution control agency in Minnesota Statutes, sections 15.91, 
  8.21  subdivision 1; and 16B.37, subdivision 2. 
  8.22     Sec. 17.  [REPEALER.] 
  8.23     Minnesota Statutes 1994, sections 116.02, subdivision 5; 
  8.24  and 116.03, subdivision 6, are repealed. 
  8.25     Sec. 18.  [EFFECTIVE DATE.] 
  8.26     Sections 1 to 17 are effective the day following final 
  8.27  enactment.