1.1 	A bill for an act
1.2 	relating to capital investment; appropriating money for RIM conservation 
1.3 	reserve; authorizing the sale and issuance of state bonds.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. RIM CONSERVATION RESERVE.
 1.6 		Subdivision 1.Appropriation. (a) $25,000,000 is appropriated from the bond 
1.7 	proceeds fund to the Board of Water and Soil Resources to acquire conservation easements 
1.8 	from landowners to preserve, restore, create, and enhance wetlands; restore and enhance 
1.9 	rivers and streams, riparian lands, and associated uplands in order to protect soil and 
1.10 	water quality; support fish and wildlife habitat; reduce flood damage; and provide other 
1.11 	public benefits. The provisions of Minnesota Statutes, section 103F.515, apply to this 
1.12 	appropriation, except that the board may establish alternative payment rates for easements 
1.13 	and practices to establish restored native prairies, as defined in Minnesota Statutes, section 
1.14 	84.02, subdivision 7, and to protect uplands. Of this appropriation, up to ten percent 
1.15 	may be used to implement the program.
1.16 	The board may give priority to the area designated for relief and recovery from the 
1.17 	flooding that occurred on or after August 18, 2007, in the area of southeast Minnesota 
1.18 	designated under Presidential Declaration of Major Disaster DR-1717.
1.19 	At least $2,000,000 of this amount is available for use by the Cedar River and Turtle 
1.20 	Creek Watershed Districts in Freeborn, Mower, Dodge, and Steele Counties to restore 
1.21 	wetlands and reduce flooding in the Austin area.
1.22 	Up to $8,000,000 of this amount is available for use in Minnesota counties in the 
1.23 	Red River Basin to restore wetlands and reduce flooding.
1.24 	Up to $500,000 is for use in the Rum River watershed.  
2.1 	Up to $2,000,000 is for use in Area II.
2.2 	$7,500,000 is for use in the seven-county metropolitan area.
2.3 	Up to $400,000 is for a grant to the Freeborn County Soil and Water Conservation 
2.4 	District for use in the Minnesota portion of the Bear Lake watershed. 
2.5 	(b) The board is authorized to enter into new agreements and amend past agreements 
2.6 	with landowners as required by Minnesota Statutes, section 103F.515, subdivision 5, to 
2.7 	allow for restoration, including overseeding and harvesting of native prairie vegetation 
2.8 	for use for energy production in a manner that does not devalue the natural habitat, 
2.9 	water quality benefits, or carbon sequestration functions of the area enrolled in the 
2.10 	easement. This shall occur after seed production and minimize impacts on wildlife. Of 
2.11 	this appropriation, up to five percent may be used for restoration, including overseeding. 
2.12 	The board must submit to the legislative committees with jurisdiction over environment 
2.13 	finance and capital investment an interim report on this program by October 1, 2011, and a 
2.14 	final report by February 1, 2012.
2.15 		Subd. 2.Bond sale. To provide the money appropriated in this section from the 
2.16 	bond proceeds fund, the commissioner of management and budget shall sell and issue 
2.17 	bonds of the state in an amount up to $25,000,000 in the manner, upon the terms, and with 
2.18 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
2.19 	Minnesota Constitution, article XI, sections 4 to 7.

2.20 	EFFECTIVE DATE. This section is effective the day following final enactment.