1.1 	A bill for an act
1.2 	relating to the environment; creating the Clean Water
1.3 	Legacy Act; providing authority, direction, and
1.4 	funding to achieve and maintain water quality
1.5 	standards for Minnesota's surface waters in accordance
1.6 	with section 303(d) of the federal Clean Water Act;
1.7 	appropriating money; proposing coding for new law in
1.8 	Minnesota Statutes chapter 446A; proposing coding for
1.9 	new law as Minnesota Statutes, chapter 114D.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. [114D.05] CITATION.
1.12 	This chapter may be cited as the "Clean Water Legacy Act." 

1.13 	Sec. 2. [114D.10] LEGISLATIVE PURPOSE.
1.14 	The purpose of the Clean Water Legacy Act is to protect,
1.15 	restore, and preserve the quality of Minnesota's surface waters
1.16 	by providing authority, direction, and resources to achieve and
1.17 	maintain water quality standards for surface waters as required
1.18 	by section 303(d) of the federal Clean Water Act, United States
1.19 	Code, title 42, section 1313(d), and applicable federal
1.20 	regulations.

1.21 	Sec. 3. [114D.15] DEFINITIONS.
1.22 		Subdivision 1.Application. The definitions provided in
1.23 	this section apply to the terms used in this chapter.
1.24 		Subd. 2.Citizen monitoring. "Citizen monitoring" means
1.25 	monitoring of surface water quality by individuals and
1.26 	nongovernmental organizations that is consistent with Pollution
1.27 	Control Agency guidance on monitoring procedures, quality
2.1 	assurance protocols, and data management.
2.2 		Subd. 3.Clean water council. "Clean Water Council" or
2.3 	"council" means the Clean Water Council created pursuant to
2.4 	section 114D.30, subdivision 1.
2.5 		Subd. 4.Federal tmdl requirements. "Federal TMDL
2.6 	requirements" means the requirements of section 303(d) of the
2.7 	Clean Water Act, United States Code, title 42, section 1313(d),
2.8 	and associated regulations and guidance.
2.9 		Subd. 5.Impaired water. "Impaired water" means surface
2.10 	water that does not meet applicable water quality standards.
2.11 		Subd. 6.Public agencies. "Public agencies" means all
2.12 	state agencies, political subdivisions, joint powers
2.13 	organizations, and special purpose units of government with
2.14 	authority, responsibility, or expertise in protecting,
2.15 	restoring, or preserving the quality of surface waters, managing
2.16 	or planning for surface waters and related lands, or financing
2.17 	waters-related projects.  "Public agencies" also includes the
2.18 	University of Minnesota and other public education institutions.
2.19 		Subd. 7.Restoration. "Restoration" means actions,
2.20 	including effectiveness monitoring, that are taken to achieve
2.21 	and maintain water quality standards for impaired waters in
2.22 	accordance with a TMDL that has been approved by the United
2.23 	States Environmental Protection Agency under federal TMDL
2.24 	requirements.
2.25 		Subd. 8.Surface waters. "Surface waters" means waters
2.26 	of the state as defined in section 115.01, subdivision 22,
2.27 	excluding groundwater as defined in section 115.01, subdivision
2.28 	6.
2.29 		Subd. 9.Third-party tmdl. "Third-party TMDL" means a
2.30 	TMDL that is developed in whole or in part by a qualified public
2.31 	or private entity other than the Pollution Control Agency
2.32 	consistent with the goals, policies, and priorities in section
2.33 	114D.20.
2.34 		Subd. 10.Total maximum daily load or tmdl. "Total
2.35 	maximum daily load" or "TMDL" means a calculation of the maximum
2.36 	amount of a pollutant that may be introduced into a surface
3.1 	water and still ensure that applicable water quality standards
3.2 	for that water are achieved and maintained.  A TMDL is the sum
3.3 	of the pollutant load allocations for all sources of the
3.4 	pollutant, including a wasteload allocation for point sources, a
3.5 	load allocation for nonpoint sources and natural background, an
3.6 	allocation for future growth of point and nonpoint sources, and
3.7 	a margin of safety to account for uncertainty about the
3.8 	relationship between pollutant loads and the quality of the
3.9 	receiving surface water.  "Natural background" means
3.10 	characteristics of the water body resulting from the
3.11 	multiplicity of factors in nature, including climate and
3.12 	ecosystem dynamics, that affect the physical, chemical, or
3.13 	biological conditions in a water body, but does not include
3.14 	measurable and distinguishable pollution that is attributable to
3.15 	human activity or influence.  A TMDL must take into account
3.16 	seasonal variations.
3.17 		Subd. 11.Water quality standards. "Water quality
3.18 	standards" for Minnesota surface waters are found in Minnesota
3.19 	Rules, chapters 7050 and 7052.

3.20 	Sec. 4. [114D.20] IMPLEMENTATION; COORDINATION; GOALS;
3.21 	POLICIES; AND PRIORITIES.
3.22 		Subdivision 1.Coordination and cooperation. In
3.23 	implementing this chapter, public agencies shall take into
3.24 	consideration the relevant provisions of local and other
3.25 	applicable water management, conservation, land use, land
3.26 	management, and development plans and programs.  Public agencies
3.27 	with authority for local water management, conservation, land
3.28 	use, land management, and development plans shall take into
3.29 	consideration the manner in which their plans affect the
3.30 	implementation of this chapter.  Public agencies shall identify
3.31 	opportunities to participate and assist in the successful
3.32 	implementation of this chapter, including the funding or
3.33 	technical assistance needs, if any, that may be necessary.  In
3.34 	implementing this chapter, public agencies shall endeavor to
3.35 	engage the cooperation of organizations and individuals whose
3.36 	activities affect the quality of surface waters, including point
4.1 	and nonpoint sources of pollution, and who have authority and
4.2 	responsibility for water management, planning, and protection.
4.3 	To the extent practicable, public agencies shall endeavor to
4.4 	enter into formal and informal agreements and arrangements with
4.5 	federal agencies and departments to jointly utilize staff and
4.6 	resources to deliver programs or conduct activities to achieve
4.7 	the intent of this chapter, including efforts under the federal
4.8 	Clean Water Act and other federal farm and soil and water
4.9 	conservation programs.
4.10 		Subd. 2.Goals for implementation. The following goals
4.11 	must guide the implementation of this chapter:
4.12 	(1) to identify impaired waters in accordance with federal
4.13 	TMDL requirements within ten years after the effective date of
4.14 	this section and thereafter to ensure continuing evaluation of
4.15 	surface waters for impairments;
4.16 	(2) to submit TMDL's to the United States Environmental
4.17 	Protection Agency for all impaired waters in a timely manner in
4.18 	accordance with federal TMDL requirements;
4.19 	(3) to set a reasonable time for implementing restoration
4.20 	of each identified impaired water;
4.21 	(4) to provide assistance and incentives to prevent waters
4.22 	from becoming impaired and to improve the quality of waters
4.23 	which are listed as impaired but have no approved TMDL
4.24 	addressing the impairment; and 
4.25 	(5) to promptly seek the delisting of waters from the
4.26 	impaired waters list when those waters are shown to achieve the
4.27 	designated uses applicable to the waters.
4.28 		Subd. 3.Implementation policies. The following policies
4.29 	must guide the implementation of this chapter:
4.30 	(1) develop regional and watershed TMDL's, and TMDL's for
4.31 	multiple pollutants, where reasonable and feasible;
4.32 	(2) maximize use of available organizational, technical,
4.33 	and financial resources to perform sampling, monitoring, and
4.34 	other activities to identify impaired waters, including use of
4.35 	citizen monitoring;
4.36 	(3) maximize opportunities for restoration of impaired
5.1 	waters, by prioritizing and targeting of available programmatic,
5.2 	financial, and technical resources and by providing additional
5.3 	state resources to complement and leverage available resources;
5.4 	(4) use existing regulatory authorities to achieve
5.5 	restoration for point and nonpoint sources of pollution where
5.6 	applicable, and promote the development and use of effective
5.7 	nonregulatory measures to address pollution sources for which
5.8 	regulations are not applicable;
5.9 	(5) use restoration methods that have a demonstrated
5.10 	effectiveness in reducing impairments and provide the greatest
5.11 	long-term positive impact on water quality protection and
5.12 	improvement while incorporating innovative approaches on a
5.13 	case-by-case basis;
5.14 	(6) identify for the legislature any innovative approaches
5.15 	that may strengthen or complement existing programs; and 
5.16 	(7) identify and encourage implementation of measures to
5.17 	prevent waters from becoming impaired and to improve the quality
5.18 	of waters that are listed as impaired but have no approved TMDL
5.19 	addressing the impairment.
5.20 		Subd. 4.Priorities for identifying impaired waters. The
5.21 	Pollution Control Agency, in accordance with federal TMDL
5.22 	requirements, shall set priorities for identifying impaired
5.23 	waters, giving consideration to:
5.24 	(1) waters where impairments would pose the greatest
5.25 	potential risk to human or aquatic health; and 
5.26 	(2) waters where data developed through public agency or
5.27 	citizen monitoring or other means, provides evidence that an
5.28 	impaired condition exists.
5.29 	Subd. 5.[PRIORITIES FOR PREPARATION OF TMDL'S.] The Clean
5.30 	Water Council shall recommend priorities for scheduling and
5.31 	preparing TMDL's taking into account the severity of the
5.32 	impairment, the designated uses of those waters, and other
5.33 	applicable federal TMDL requirements.  In recommending
5.34 	priorities, the council shall also give consideration to waters
5.35 	and watersheds:
5.36 	(1) with impairments that pose the greatest potential risk
6.1 	to human health;
6.2 	(2) with impairments that pose the greatest potential risk
6.3 	to aquatic health;
6.4 	(3) where other public agencies and participating
6.5 	organizations and individuals, especially local, basinwide, or
6.6 	regional agencies or organizations, have demonstrated readiness
6.7 	to assist in carrying out the responsibilities, including
6.8 	availability and organization of human, technical, and financial
6.9 	resources necessary to undertake the work; and 
6.10 	(4) where there is demonstrated coordination and
6.11 	cooperation among cities, counties, watershed districts, and
6.12 	soil and water conservation districts in planning and
6.13 	implementation of activities that will assist in carrying out
6.14 	the responsibilities.
6.15 		Subd. 6.Priorities for restoration of impaired
6.16 	waters. In implementing restoration of impaired waters, in
6.17 	addition to the priority considerations in subdivision 5 the
6.18 	Clean Water Council shall give priority in its recommendations
6.19 	for restoration funding from the clean water legacy account to
6.20 	restoration projects that:
6.21 	(1) coordinate with and utilize existing local authorities
6.22 	and infrastructure for implementation;
6.23 	(2) can be implemented in whole or in part by providing
6.24 	support for existing or ongoing restoration efforts; and 
6.25 	(3) most effectively leverage other sources of restoration
6.26 	funding, including federal, state, local, and private sources of
6.27 	funds; and 
6.28 	(4) show a high potential for early restoration and
6.29 	delisting based upon data developed through public agency or
6.30 	citizen monitoring or other means.
6.31 		Subd. 7.Priorities for funding prevention actions. The
6.32 	Clean Water Council shall apply the priorities applicable under
6.33 	subdivision 6, as far as practicable, when recommending
6.34 	priorities for funding actions to prevent waters from becoming
6.35 	impaired and to improve the quality of waters which are listed
6.36 	as impaired but have no approved TMDL.

7.1 	Sec. 5. [114D.25] ADMINISTRATION; POLLUTION CONTROL
7.2 	AGENCY.
7.3 		Subdivision 1.General duties and authorities. (a) The
7.4 	Pollution Control Agency, in accordance with federal TMDL
7.5 	requirements, shall:  identify impaired waters and propose a
7.6 	list of the waters for review and approval by the United States
7.7 	Environmental Protection Agency; develop and approve TMDL's for
7.8 	listed impaired waters and submit the approved TMDL's to the
7.9 	United State Environmental Protection Agency for final approval;
7.10 	and propose to delist waters from the Environmental Protection
7.11 	Agency impaired waters list.
7.12 	(b) A TMDL must include a statement of the facts and
7.13 	scientific data supporting the TMDL and a list of potential
7.14 	implementation options, including a range of estimates of the
7.15 	cost of implementation and individual wasteload data for any
7.16 	point sources addressed by the TMDL.
7.17 	(c) The implementation information need not be sent to the
7.18 	United States Environmental Protection Agency for review and
7.19 	approval.
7.20 		Subd. 2.Administrative procedures for tmdl
7.21 	approval. The approval of a TMDL by the Pollution Control
7.22 	Agency is a final decision of the agency for purposes of section
7.23 	115.05, and is subject to the contested case procedures of
7.24 	sections 14.57 to 14.62 in accordance with agency procedural
7.25 	rules.  The agency shall not submit an approved TMDL to the
7.26 	United States Environmental Protection Agency until the time for
7.27 	commencing judicial review has run or the judicial review
7.28 	process has been completed.  A TMDL is not subject to the
7.29 	rulemaking requirements of chapter 14, including section 14.386.
7.30 		Subd. 3.Tmdl submittal requirement. Before submitting a
7.31 	TMDL to the United States Environmental Protection Agency, the
7.32 	Pollution Control Agency shall comply with the notice and
7.33 	procedure requirements of this section.  If a contested case
7.34 	proceeding is not required for a proposed TMDL, the agency may
7.35 	submit the TMDL to the United States Environmental Protection
7.36 	Agency no earlier than 30 days after the notice required in
8.1 	subdivision 4.  If a contested case proceeding is required for a
8.2 	TMDL, the TMDL may be submitted to the United States
8.3 	Environmental Protection Agency after the contested case
8.4 	proceeding and appeal process is completed.
8.5 		Subd. 4.Tmdl notice; contents. The Pollution Control
8.6 	Agency shall give notice of its intention to submit a TMDL to
8.7 	the United States Environmental Protection Agency.  The notice
8.8 	must be given by publication in the State Register and by United
8.9 	States mail to persons who have registered their names with the
8.10 	agency.  The notice must include either a copy of the proposed
8.11 	TMDL or an easily readable and understandable description of its
8.12 	nature and effect and an announcement of how free access to the
8.13 	proposed TMDL can be obtained.  In addition, the agency shall
8.14 	make reasonable efforts to notify persons or classes of persons
8.15 	who may be significantly affected by the TMDL by giving notice
8.16 	of its intention in newsletters, newspapers, or other
8.17 	publications, or through other means of communication.  The
8.18 	notice must include a statement informing the public:
8.19 	(1) that the public has 30 days in which to submit comment
8.20 	in support of or in opposition to the proposed TMDL and that
8.21 	comment is encouraged;
8.22 	(2) that each comment should identify the portion of the
8.23 	proposed TMDL addressed, the reason for the comment, and any
8.24 	change proposed;
8.25 	(3) of the manner in which persons must request a contested
8.26 	case proceeding on the proposed TMDL;
8.27 	(4) that the proposed TMDL may be modified if the
8.28 	modifications are supported by the data and views submitted; and 
8.29 	(5) the date on which the 30-day comment period ends.
8.30 		Subd. 5.Third-party tmdl development. The Pollution
8.31 	Control Agency may enter agreements with any qualified public or
8.32 	private entity setting forth the terms and conditions under
8.33 	which that entity is authorized to develop a third-party TMDL.
8.34 	Before entering into an agreement with an entity to develop a
8.35 	third-party TMDL, the Pollution Control Agency must make
8.36 	reasonable efforts to notify cities, counties, townships, soil
9.1 	and water conservation districts, and watershed districts in the
9.2 	area that would be affected by the TMDL.  In determining whether
9.3 	an entity is qualified to develop a third-party TMDL, the agency
9.4 	shall consider the technical and administrative qualifications
9.5 	of the entity and may not enter into an agreement with a
9.6 	third-party entity that has a conflict of interest with respect
9.7 	to the development of the third-party TMDL.  A third-party TMDL
9.8 	is subject to modification and approval by the Pollution Control
9.9 	Agency, and must be approved by the Pollution Control Agency
9.10 	before it is submitted to the United States Environmental
9.11 	Protection Agency.  Before submitting a third-party TMDL to the
9.12 	Environmental Protection Agency, the Pollution Control Agency
9.13 	must comply with the notice and procedure requirements of
9.14 	subdivision 3.  Approval of a third-party TMDL by the Pollution
9.15 	Control Agency is subject to judicial review and contested case
9.16 	procedures in the same manner as approval of any other TMDL by
9.17 	the Pollution Control Agency.  The Pollution Control Agency
9.18 	shall consider authorizing the development of third-party TMDL's
9.19 	consistent with the goals, policies, and priorities determined
9.20 	under section 116.384.

9.21 	Sec. 6. [114D.30] CLEAN WATER COUNCIL.
9.22 		Subdivision 1.Creation; duties. A Clean Water Council
9.23 	is created to advise on the administration and implementation of
9.24 	this chapter, and foster coordination and cooperation as
9.25 	described in section 114D.20, subdivision 1.  The council may
9.26 	also advise on the development of appropriate processes for
9.27 	expert scientific review as described in section 114D.35,
9.28 	subdivision 2.  The Pollution Control Agency shall provide
9.29 	administrative support for the council with the support of other
9.30 	member agencies.  The members of the council shall elect a chair
9.31 	from the nonagency members of the council.
9.32 		Subd. 2.Membership; appointment. The governor must
9.33 	appoint the members of the council.  The governor must appoint
9.34 	one person from each of the following agencies:  the Department
9.35 	of Natural Resources, the Department of Agriculture, the
9.36 	Pollution Control Agency, and the Board of Water and Soil
10.1 	Resources.  The governor must appoint 13 additional nonagency
10.2 	members of the council as follows:
10.3 	(1) two members representing statewide farm organizations;
10.4 	(2) two members representing business organizations;
10.5 	(3) two members representing environmental organizations;
10.6 	(4) one member representing soil and water conservation
10.7 	districts;
10.8 	(5) one member representing watershed districts;
10.9 	(6) one member representing organizations focused on
10.10 	improvement of Minnesota lakes or streams;
10.11 	(7) one member representing an organization of county
10.12 	governments;
10.13 	(8) two members representing organizations of city
10.14 	governments; and 
10.15 	(9) one member representing the Metropolitan Council
10.16 	established under section 473.123.
10.17 	In making appointments, the governor must attempt to
10.18 	provide for geographic balance.
10.19 		Subd. 3.Terms; compensation; removal. The initial terms
10.20 	of members representing state agencies and the Metropolitan
10.21 	Council expire on the first Monday in January, 2007.
10.22 	Thereafter, the terms of members representing the state agencies
10.23 	and the Metropolitan Council are four years and are coterminous
10.24 	with the governor.  The terms of other members of the council
10.25 	shall be as provided in section 15.059, subdivision 2.  Members
10.26 	may serve until their successors are appointed and qualify.
10.27 	Compensation and removal of council members is as provided in
10.28 	section 15.059, subdivisions 3 and 4.  A vacancy on the council
10.29 	may be filled by the appointing authority provided in
10.30 	subdivision 1 for the remainder of the unexpired term.
10.31 		Subd. 4.Implementation plan. The Clean Water Council
10.32 	shall prepare a plan for implementation of this chapter.  The
10.33 	plan shall address general procedures and time frames for
10.34 	implementing this chapter, and shall include a more specific
10.35 	implementation work plan for the next fiscal biennium and a
10.36 	framework for setting priorities to address impaired waters
11.1 	consistent with section 114D.45, subdivisions 2 to 7.  The
11.2 	council shall issue the first implementation plan under this
11.3 	subdivision by December 1, 2005, and shall issue a revised work
11.4 	plan by December 1 of each even-numbered year thereafter.
11.5 		Subd. 5.Recommendations on appropriation of funds. The
11.6 	Clean Water Council shall recommend to the governor the manner
11.7 	in which money from the clean water legacy account should be
11.8 	appropriated for the purposes identified in section 114D.45,
11.9 	subdivision 3.  The council's recommendations must be consistent
11.10 	with the purposes, policies, goals, and priorities in sections
11.11 	114D.05 to 114D.35, and shall allocate adequate support and
11.12 	resources to identify impaired waters, develop TMDL's, implement
11.13 	restoration of impaired waters, and provide assistance and
11.14 	incentives to prevent waters from becoming impaired and improve
11.15 	the quality of waters which are listed as impaired but have no
11.16 	approved TMDL.  The council must recommend methods of ensuring
11.17 	that awards of grants, loans, or other funds from the clean
11.18 	water legacy account specify the outcomes to be achieved as a
11.19 	result of the funding, and specify standards to hold the
11.20 	recipient accountable for achieving the desired outcomes.
11.21 		Subd. 6.Biennial report to legislature. By December 1
11.22 	of each even-numbered year, the council shall submit a report to
11.23 	the legislature on the activities for which money from the clean
11.24 	water legacy account has been or will be spent for the current
11.25 	biennium, and the activities for which money from the account is
11.26 	recommended to be spent in the next biennium.  The report due on
11.27 	December 1, 2014, must include an evaluation of the progress
11.28 	made through June 30, 2014, in implementing this chapter, the
11.29 	need for funding of future implementation of those sections, and
11.30 	recommendations for the sources of such funding.

11.31 	Sec. 7. [114D.35] PUBLIC AND STAKEHOLDER PARTICIPATION;
11.32 	SCIENTIFIC REVIEW; EDUCATION.
11.33 		Subdivision 1.Public and stakeholder participation.
 11.34 	Public agencies involved in the implementation of this chapter
11.35 	shall encourage participation by the public and stakeholders,
11.36 	including local citizens, land owners and managers, and public
12.1 	and private organizations, in the identification of impaired
12.2 	waters, in developing TMDL's, and in planning and implementing
12.3 	restoration of impaired waters.  In particular, the Pollution
12.4 	Control Agency shall make reasonable efforts to provide timely
12.5 	information to the public and to stakeholders about impaired
12.6 	waters that have been identified by the agency.  The agency
12.7 	shall seek broad and early public and stakeholder participation
12.8 	in scoping the activities necessary to develop a TMDL, including
12.9 	the scientific models, methods, and approaches to be used in
12.10 	TMDL development, and to implement restoration pursuant to
12.11 	section 114D.15, subdivision 7.
12.12 		Subd. 2.Expert scientific advice. The Clean Water
12.13 	Council and public agencies shall make use of available
12.14 	expertise from educational, research, and technical
12.15 	organizations, including the University of Minnesota and other
12.16 	higher education institutions, to provide appropriate
12.17 	independent expert advice on models, methods, and approaches
12.18 	used in identifying impaired waters, developing TMDL's, and
12.19 	implementing prevention and restoration.
12.20 		Subd. 3.Education. The Clean Water Council shall
12.21 	develop strategies for informing, educating, and encouraging the
12.22 	participation of citizens, stakeholders, and others regarding
12.23 	the identification of impaired waters, development of TMDL's,
12.24 	and development and implementation of restoration for impaired
12.25 	waters.  Public agencies shall be responsible for implementing
12.26 	the strategies.

12.27 	Sec. 8. [114D.40] CLEAN WATER FEES.
12.28 		Subdivision 1.Definitions. (a) The definitions in this
12.29 	subdivision apply to the terms used in this section.
12.30 	(b) "Average daily discharge or application limitation"
12.31 	means the highest allowable average of daily discharge or land
12.32 	application during a calendar day or any 24-hour period that
12.33 	reasonably represents the discharge during the calendar day for
12.34 	the purposes of sampling, calculated as the sum of all daily
12.35 	discharges or land applications measured during a day, divided
12.36 	by the number of daily discharges or land applications during
13.1 	that day.
13.2 	(c) "Effluent flow" means the flow of domestic wastewater
13.3 	from a residential dwelling or nonresidential establishment.
13.4 	The rate of water usage by a residential dwelling or
13.5 	nonresidential establishment must be substituted for the
13.6 	effluent flow if effluent flow from the residential dwelling or
13.7 	nonresidential establishment is not measured.
13.8 	(d) "Fee collection authorities" means counties, the
13.9 	Pollution Control Agency, and public agencies with authority to
13.10 	collect fees and charges for sewer services provided by a
13.11 	publicly owned treatment works.
13.12 	(e) "Individual sewage treatment system" means a sewage
13.13 	treatment system, or part thereof, that is regulated by the
13.14 	state or its political subdivisions, and which serves a
13.15 	residential dwelling, or nonresidential establishment, or group
13.16 	thereof, using sewage tanks followed by soil treatment and
13.17 	disposal or using advanced treatment devices that discharge
13.18 	below final grade.  "Individual sewage treatment system" also
13.19 	includes sewage holding tanks and privies.
13.20 	(f) "Nonresidential establishment" means a structure or
13.21 	portion of a structure that is not a residential dwelling.
13.22 	(g) "Publicly owned treatment works" means a device or
13.23 	system used in the treatment, recycling, or reclamation of
13.24 	municipal sewage or liquid industrial waste that is owned by the
13.25 	state, a political subdivision, sanitary district, or other
13.26 	public organization established under state law and which relies
13.27 	primarily on wastewater treatment systems other than individual
13.28 	sewage treatment systems.
13.29 	(h) "Residential dwelling" means a room or group of rooms
13.30 	used by an individual, family, or other group as living quarters
13.31 	which includes facilities for sleeping, eating, cooking, and
13.32 	sanitation.  "Residential dwelling" includes apartments,
13.33 	condominiums, cooperatives, attached and detached dwellings,
13.34 	mobile homes, seasonal or recreational dwellings, or a dwelling
13.35 	in which a resident of that dwelling engages in a business or
13.36 	employment.  A farm that includes buildings is treated as a
14.1 	residential dwelling.  "Residential dwelling" does not include:
14.2 	(1) hotels, motels, resorts, boarding houses, clubs,
14.3 	hospitals, nursing homes, dormitories, schools, colleges, or
14.4 	similar institutional or transient facility; or 
14.5 	(2) any residential dwelling containing not more than two
14.6 	residential dwelling units which receive a single bill for sewer
14.7 	services with one or more nonresidential establishments.
14.8 		Subd. 2.Assessment of clean water fees. A clean water
14.9 	fee is imposed as provided in subdivision 3 on all discharges of
14.10 	domestic and industrial wastewater to sanitary sewer systems;
14.11 	wastewater treatment plants, facilities, or systems; individual
14.12 	sewage treatment systems; and other systems.
14.13 		Subd. 3.Fee amounts. (a) The amounts of the clean water
14.14 	fees imposed under this section are as provided in this
14.15 	subdivision.
14.16 	(b) For discharges to sanitary sewer systems served by a
14.17 	publicly owned treatment works, the clean water fees are as
14.18 	follows:
14.19 	(1) for each residential dwelling that receives a separate
14.20 	bill for service and contains not more than two residential
14.21 	dwelling units, $36 per year;
14.22 	(2) for a structure that contains more than two residential
14.23 	dwelling units that do not receive separate bills for service,
14.24 	clean water fees must be calculated as follows:
14.25 	(i) $36 per year for each residential dwelling unit in the
14.26 	structure; and 
14.27 	(ii) any nonresidential establishment which is billed
14.28 	together with the residential dwelling units is subject to a
14.29 	clean water fee on that portion of the effluent flow for the
14.30 	structure that is attributable to that nonresidential
14.31 	establishment, and the fee must be calculated based on effluent
14.32 	flows as provided in clause (3); and 
14.33 	(3) for each nonresidential establishment that receives a
14.34 	separate bill for service, the fee is as follows:
14.35 	(i) if average effluent flow is less than 10,000 gallons
14.36 	per day, $120 per year;
15.1 	(ii) if average effluent flow is 10,000 gallons per day or
15.2 	greater, but less than 100,000 gallons per day, $300 per year;
15.3 	and 
15.4 	(iii) if average effluent flow is 100,000 gallons per day
15.5 	or greater, $600 per year.
15.6 	(c) Except as provided in paragraph (d), for discharges
15.7 	from wastewater treatment facilities, other than publicly owned
15.8 	treatment works, which are required to obtain a national
15.9 	pollution discharge elimination system or state disposal system
15.10 	permit, the fee is as follows:
15.11 	(1) for permits authorizing an average daily discharge or
15.12 	land application limitation of less than 10,000 gallons on an
15.13 	annualized basis, $120 per year;
15.14 	(2) for permits authorizing an average daily discharge or
15.15 	land application limitation of 10,000 gallons per day or
15.16 	greater, but less than 100,000 gallons per day, $300 per year;
15.17 	and 
15.18 	(3) for permits authorizing an average daily discharge or
15.19 	land application limitation of 100,000 gallons per day or
15.20 	greater, $600 per year.
15.21 	(d) A clean water fee must not be imposed under paragraph
15.22 	(c), on discharges from a facility that operates under a general
15.23 	permit issued by the agency.
15.24 	(e) For discharges to domestic wastewater treatment systems
15.25 	permitted by the Pollution Control Agency, excluding publicly
15.26 	owned treatment works, the fee is $36 per year for each
15.27 	residential dwelling and nonresidential establishment that
15.28 	discharges to the systems.  No single residential unit or
15.29 	nonresidential establishment may be required to pay more than
15.30 	one clean water fee under this paragraph.
15.31 	(f) For individual sewage treatment systems not permitted
15.32 	by the Pollution Control Agency, the fee is $36 per year for
15.33 	each residential dwelling and nonresidential establishment
15.34 	served by the system.  No single residential unit or
15.35 	nonresidential establishment may be required to pay more than
15.36 	one clean water fee under this paragraph.
16.1 	(g) For any wastewater system not described in paragraphs
16.2 	(b) to (f), that accepts and discharges untreated or partially
16.3 	treated wastewater, the fee is $36 per year for each residential
16.4 	dwelling and nonresidential establishment that discharges to the
16.5 	system.
16.6 	(h) Any single residential unit or nonresidential
16.7 	establishment that would be subject to payment of a clean water
16.8 	fee under both paragraphs (f) and (g) may only be required to
16.9 	pay the clean water fee under paragraph (e).
16.10 		Subd. 4.Collection and enforcement. (a) Fees imposed on
16.11 	discharges to sanitary sewer systems served by publicly owned
16.12 	treatment works must be collected by the public agency that
16.13 	collects fees or charges from the users of that service.  The
16.14 	fees must be collected at the same time and with the same
16.15 	frequency as fees or charges for service are collected.  The
16.16 	collecting entity may enforce payment of the fees using the same
16.17 	enforcement authority applicable to sewer service charges.
16.18 	(b) Fees imposed under subdivision 3, paragraphs (c) and
16.19 	(e), must be collected by the Pollution Control Agency from the
16.20 	permittees for the facilities or systems.  The Pollution Control
16.21 	Agency may enforce payment of the fees using the same
16.22 	enforcement authority applicable to permit fees.
16.23 	(c) Fees imposed under subdivision 3, paragraphs (f) and
16.24 	(g), must be collected by each county, from the owners of the
16.25 	residential dwellings or nonresidential establishments subject
16.26 	to the fee that are located in the county.  The counties shall
16.27 	collect the fees at least once per calendar year, but may
16.28 	collect the fees more frequently.  If fees are collected
16.29 	annually, the counties shall require payment of the fees by not
16.30 	later than February 1 following the calendar year for which the
16.31 	fee is imposed.  The counties shall determine that manner in
16.32 	which the fees are collected.  Each county shall enact and
16.33 	enforce an appropriate ordinance to enforce payment of the fees.
16.34 	(d) By August 15, 2005, the counties shall identify and
16.35 	develop a list of all persons subject to the fees under
16.36 	subdivision 3, paragraphs (f) and (g), located in that county.
17.1 	The counties shall annually update the list by August 15 of each
17.2 	year.
17.3 	(e) The fee collection authorities shall exempt a person
17.4 	from payment of the clean water fee for a discharge of
17.5 	wastewater from a residential dwelling if the fee collection
17.6 	authority determines that the person meets any of the criteria
17.7 	for eligibility under the telephone assistance plan established
17.8 	under section 237.70, or that the person is receiving telephone
17.9 	assistance under that plan.  The Pollution Control Agency shall
17.10 	create a form that fee collection authorities shall use to
17.11 	determine eligibility for exemption under this paragraph.
17.12 	(f) Any statement, invoice, or other document used to
17.13 	collect the fees under this subdivision must clearly identify
17.14 	the fee as the "Minnesota Clean Water Fee." 
17.15 		Subd. 5.Payment to commissioner of revenue; deposit. (a)
17.16 	The fee collection authorities shall remit all fees collected
17.17 	under this section, less the costs to collect the fees, not to
17.18 	exceed five percent of the total collected, to the commissioner
17.19 	of revenue.  The fees must be remitted in a manner prescribed by
17.20 	the commissioner.  Amounts collected during the previous
17.21 	calendar quarter must be remitted to the commissioner on April
17.22 	30, July 31, October 31, and January 31.  In addition to the
17.23 	costs of collecting the fees, the fee collection authorities may
17.24 	retain from fees collected for calendar year 2006 the costs to
17.25 	develop methods and procedures for collecting the clean water
17.26 	fees.
17.27 	(b) The commissioner of revenue shall deposit all clean
17.28 	water fees remitted by the fee collection authorities in the
17.29 	clean water legacy account.
17.30 	(c) The assessment, audit, refund, penalty, interest,
17.31 	enforcement, collection remedies, appeal, and administrative
17.32 	provisions of chapters 270 and 289A that are applicable to fees
17.33 	imposed under chapter 297A apply to the fees imposed by this
17.34 	section.
17.35 		Subd. 6.Effective date; repealer. The fees imposed by
17.36 	this section are effective and collection must begin for the
18.1 	year beginning January 1, 2006.  This section is repealed on
18.2 	December 31, 2015.

18.3 	Sec. 9. [114D.45] CLEAN WATER LEGACY ACCOUNT.
18.4 		Subdivision 1.Creation. The clean water legacy account
18.5 	is created as an account in the environmental fund.  Money in
18.6 	the account must be made available for the implementation of
18.7 	this chapter and sections 446A.073 and 446A.074, without
18.8 	supplanting or taking the place of any other funds which are
18.9 	currently available or may become available from any other
18.10 	source, whether federal, state, local, or private, for
18.11 	implementation of those sections.
18.12 		Subd. 2.Sources of revenue. The following revenues must
18.13 	be deposited in the clean water legacy account:
18.14 	(1) the revenue from the clean water fees collected under
18.15 	section 114D.40; and 
18.16 	(2) interest accrued on the account.
18.17 		Subd. 3.Uses of account. Subject to appropriation by
18.18 	the legislature, the clean water legacy account may be used for
18.19 	the following purposes:
18.20 	(1) to provide grants, loans, and technical assistance to
18.21 	public agencies and others who are participating in the process
18.22 	of identifying impaired waters, developing TMDL's, implementing
18.23 	restoration plans for impaired waters, and monitoring the
18.24 	effectiveness of restoration;
18.25 	(2) to support measures to prevent waters from becoming
18.26 	impaired and to improve the quality of waters that are listed as
18.27 	impaired but have no approved TMDL addressing the impairment;
18.28 	(3) to provide grants and loans for wastewater and
18.29 	stormwater treatment projects through the Public Facilities
18.30 	Authority;
18.31 	(4) to support the efforts of public agencies associated
18.32 	with individual sewage treatment systems and financial
18.33 	assistance for upgrading and replacing the systems; and 
18.34 	(5) to provide funds to state agencies to carry out their
18.35 	responsibilities under this chapter.

18.36 	Sec. 10. [446A.073] CLEAN WATER LEGACY PHOSPHORUS
19.1 	REDUCTION GRANTS.
19.2 		Subdivision 1.Creation of fund. The authority shall
19.3 	establish a clean water legacy capital improvement fund and
19.4 	shall make grants from the fund as provided in this section.
19.5 		Subd. 2.Grants. The authority shall award grants from
19.6 	the clean water legacy capital improvement fund to governmental
19.7 	units for the capital costs of wastewater treatment facility
19.8 	projects or a portion thereof that will reduce the discharge of
19.9 	total phosphorus from the facility to one milligram per liter or
19.10 	less.  A project is eligible for a grant if it meets the
19.11 	following requirements:
19.12 	(1) the applicable phosphorus discharge limit is
19.13 	incorporated in a permit issued by the agency for the wastewater
19.14 	treatment facility on or after March 28, 2000, or the grantee
19.15 	agrees to comply with the applicable limit as a condition of
19.16 	receiving the grant;
19.17 	(2) the governmental unit has submitted a facilities plan
19.18 	for the project to the agency and a grant application to the
19.19 	authority on a form prescribed by the authority; and 
19.20 	(3) the agency has approved the application and facilities
19.21 	plan, and certified the eligible costs for the project to the
19.22 	authority.
19.23 		Subd. 3.Eligible capital costs. Eligible capital costs
19.24 	for phosphorus reduction grants under subdivision 4, paragraph
19.25 	(a), include the as-bid construction costs and engineering
19.26 	planning and design costs.  Eligible capital costs for
19.27 	phosphorus reduction grants under subdivision 4, paragraph (b),
19.28 	include the final, incurred construction, engineering, planning,
19.29 	and design costs.
19.30 		Subd. 4.Grant amounts and priorities. (a) Priority must
19.31 	be given to projects that start construction on or after July 1,
19.32 	2005.  If a facility's plan for a project is approved by the
19.33 	agency before July 1, 2009, the amount of the grant is 75
19.34 	percent of the eligible capital cost of the project.  If a
19.35 	facility's plan for a project is approved by the agency on or
19.36 	after July 1, 2009, the amount of the grant is 50 percent of the
20.1 	eligible capital cost of the project.  Priority in awarding
20.2 	grants under this paragraph must be based on the date of
20.3 	approval of the facility's plan for the project.
20.4 	(b) Projects that meet the eligibility requirements in
20.5 	subdivision 2 and have started construction before July 1, 2005,
20.6 	are eligible for grants to reimburse up to 75 percent of the
20.7 	eligible capital cost of the project, less any amounts
20.8 	previously received in grants from other sources.  Application
20.9 	for a grant under this paragraph must be submitted to the agency
20.10 	no later than June 30, 2007.  Priority for award of grants under
20.11 	this paragraph must be based on the date of agency approval of
20.12 	the application for the grant.
20.13 	(c) In each fiscal year that money is available for grants,
20.14 	the authority shall first award grants under paragraph (a) to
20.15 	projects that met the eligibility requirements of subdivision 2
20.16 	by May 1 of that year.  The authority shall use any remaining
20.17 	money available that year to award grants under paragraph (b).
20.18 	Grants that have been approved but not awarded in a previous
20.19 	fiscal year carry over and must be awarded in subsequent fiscal
20.20 	years in accordance with the priorities in this paragraph.
20.21 	(d) Disbursements of grants under this section by the
20.22 	authority to recipients must be made for eligible project costs
20.23 	as incurred by the recipients, and must be made by the authority
20.24 	in accordance with the project financing agreement and
20.25 	applicable state law.
20.26 		Subd. 5.Fees. The authority may charge the grant
20.27 	recipient a fee for its administrative costs not to exceed
20.28 	one-half of one percent of the grant amount, to be paid upon
20.29 	execution of the grant agreement.

20.30 	Sec. 11. [446A.074] SMALL COMMUNITY WASTEWATER TREATMENT
20.31 	LOAN PROGRAM.
20.32 		Subdivision 1.Creation of fund. The authority shall
20.33 	establish a small community wastewater treatment fund and shall
20.34 	make loans from the fund as provided in this section.  Money in
20.35 	the fund is annually appropriated to the authority and does not
20.36 	lapse.  The fund shall be credited with all loan repayments and
21.1 	investment income from the fund, and servicing fees assessed
21.2 	under section 446A.04, subdivision 5.  The authority shall
21.3 	manage and administer the small community wastewater treatment
21.4 	fund, and for these purposes, may exercise all powers provided
21.5 	in this chapter.
21.6 		Subd. 2.Loans. The authority shall award loans to
21.7 	governmental units from the small community wastewater treatment
21.8 	fund for projects to replace noncomplying individual sewage
21.9 	treatment systems with a community wastewater treatment system
21.10 	or systems meeting the requirements of section 115.55.  A
21.11 	governmental unit receiving a loan from the fund shall own the
21.12 	community wastewater treatment systems built under the program
21.13 	and shall be responsible, either directly or through a contract
21.14 	with a private vendor, for all inspections, maintenance, and
21.15 	repairs necessary to assure proper operation of the systems.
21.16 		Subd. 3.Project priority list. Governmental units
21.17 	seeking loans from the small community wastewater treatment loan
21.18 	program shall first submit a project proposal to the agency.  A
21.19 	project proposal shall include a compliance determination for
21.20 	all individual sewage treatment systems in the project area.
21.21 	The agency shall rank project proposals on its project priority
21.22 	list used for the water pollution control revolving fund under
21.23 	section 446A.07.
21.24 		Subd. 4.Loan applications. Governmental units with
21.25 	projects on the project priority list shall submit applications
21.26 	to the authority on forms prescribed by the authority.  The
21.27 	application shall include:
21.28 	(1) a list of the individual sewage treatment systems
21.29 	proposed to be replaced over a period of up to three years;
21.30 	(2) a project schedule and cost estimate for each year of
21.31 	the project;
21.32 	(3) a financing plan for repayment of the loan; and 
21.33 	(4) a management plan providing for the inspection,
21.34 	maintenance, and repairs necessary to assure proper operation of
21.35 	the systems.
21.36 		Subd. 5.Loan awards. The authority shall award loans to
22.1 	governmental units with approved loan applications based on
22.2 	their ranking on the agency's project priority list.  The loan
22.3 	amount shall be based on the estimated project costs for the
22.4 	portion of the project expected to be completed within one year,
22.5 	up to an annual maximum of $500,000.  For projects expected to
22.6 	take more than one year to complete, the authority may make a
22.7 	multiyear commitment for a period not to exceed three years,
22.8 	contingent on the future availability of funds.  Each year of a
22.9 	multiyear commitment must be funded by a separate loan agreement
22.10 	meeting the terms and conditions in subdivision 6.  A
22.11 	governmental unit receiving a loan under a multiyear commitment
22.12 	shall have priority for additional loan funds in subsequent
22.13 	years.
22.14 		Subd. 6.Loan terms and conditions. Loans from the small
22.15 	community wastewater treatment fund shall comply with the
22.16 	following terms and conditions:
22.17 	(1) principal and interest payments must begin no later
22.18 	than two years after the loan is awarded;
22.19 	(2) loans shall carry an interest rate of one percent;
22.20 	(3) loans shall be fully amortized within ten years of the
22.21 	first scheduled payment or, if the loan amount exceeds $10,000
22.22 	per household, shall be fully amortized within 20 years but not
22.23 	to exceed the expected design life of the system;
22.24 	(4) a governmental unit receiving a loan must establish a
22.25 	dedicated source or sources of revenues for repayment of the
22.26 	loan and must issue a general obligation note to the authority
22.27 	for the full amount of the loan; and 
22.28 	(5) each property owner to be served by a community
22.29 	wastewater treatment system under this program must provide an
22.30 	easement to the governmental unit to allow access to the system
22.31 	for management and repairs.
22.32 		Subd. 7.Special assessment deferral. (a) A governmental
22.33 	unit receiving a loan under this section that levies special
22.34 	assessments to repay the loan may defer payment of the
22.35 	assessments under the provisions of sections 435.193 to 435.195.
22.36 	(b) A governmental unit that defers payment of special
23.1 	assessments for one or more properties under paragraph (a) may
23.2 	request deferral of that portion of the debt service on its
23.3 	loan, and the authority shall accept appropriate amendments to
23.4 	the general obligation note of the governmental unit.  If
23.5 	special assessment payments are later received from properties
23.6 	that received a deferral, the funds received shall be paid to
23.7 	the authority with the next scheduled loan payment.
23.8 		Subd. 8.Eligible costs. Eligible costs for small
23.9 	community wastewater treatment loans shall include the costs of
23.10 	planning, design, construction, legal fees, administration, and
23.11 	land acquisition.
23.12 		Subd. 9.Disbursements. Loan disbursements by the
23.13 	authority under this section must be made for eligible project
23.14 	costs as incurred by the recipients, and must be made in
23.15 	accordance with the project loan agreement and applicable state
23.16 	law.
23.17 		Subd. 10.Audits. A governmental unit receiving a loan
23.18 	under this section must annually provide to the authority for
23.19 	the term of the loan a copy of its annual independent audit or,
23.20 	if the governmental unit is not required to prepare an
23.21 	independent audit, a copy of the annual financial reporting form
23.22 	it provides to the state auditor.

23.23 	Sec. 12. APPROPRIATIONS.
 23.24 		Subdivision 1.General provisions. The appropriations in
23.25 	this section are from the environmental fund and are available
23.26 	for the fiscal years ending June 30, 2006, and June 30, 2007.
23.27 	Unless otherwise specified in this section, these appropriations
23.28 	do not cancel and remain available until June 30, 2007.
23.29 	Appropriations in this section that are encumbered under
23.30 	contract, including grant contract, on or before June 30, 2007,
23.31 	are available until June 30, 2009.
23.32 		Subd. 2.Department of revenue; fee collection
23.33 	costs. $38,000 in fiscal year 2006 and $31,000 in fiscal year
23.34 	2007 are appropriated to the Department of Revenue to pay the
23.35 	costs of collection and administration of the clean water fees
23.36 	imposed in Minnesota Statutes, section 114D.40.
24.1 		Subd. 3.Pollution control agency. The following amounts
24.2 	are appropriated to the Pollution Control Agency for the
24.3 	purposes stated:
24.4 	(1) $1,000,000 in fiscal year 2006 is to assist counties in
24.5 	developing the list required under Minnesota Statutes, section
24.6 	114D.40, subdivision 4, paragraph (e), of persons subject to
24.7 	clean water fees under Minnesota Statutes, section 114D.40,
24.8 	subdivision 3, paragraphs (f) and (g);
24.9 	(2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal
24.10 	year 2007 are for statewide assessment of surface water quality
24.11 	and trends; of these amounts, up to $1,474,000 in fiscal year
24.12 	2006 and $3,256,600 in fiscal year 2007 are available for grants
24.13 	or contracts to support citizen monitoring of surface waters;
24.14 	and 
24.15 	(3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal
24.16 	year 2007 are to develop TMDL's for waters listed on the United
24.17 	States Environmental Protection Agency approved 2004 impaired
24.18 	waters list; of this appropriation, up to $384,950 in fiscal
24.19 	year 2006 and $1,118,750 in fiscal year 2007 are available for
24.20 	grants or contracts to develop TMDL's.
24.21 		Subd. 4.Agriculture department. The following amounts
24.22 	are appropriated to the Department of Agriculture for the
24.23 	purposes stated:
24.24 	(1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal
24.25 	year 2007 are for agricultural best management practices
24.26 	low-interest loans to producers and rural landowners; of these
24.27 	amounts, $200,000 in fiscal year 2006 and $2,100,000 in fiscal
24.28 	year 2007 are available for pass-through to local governments
24.29 	and lenders for low-interest loans;
24.30 	(2) $350,000 in fiscal year 2006 and $800,000 in fiscal
24.31 	year 2007 are to expand technical assistance to producers and
24.32 	conservation professionals on nutrient and pasture management;
24.33 	target practices to sources of water impairments; coordinate
24.34 	federal and state farm conservation programs to fully utilize
24.35 	federal conservation funds; and expand conservation planning
24.36 	assistance for producers; of these amounts, $50,000 in fiscal
25.1 	year 2006 and $210,000 in fiscal year 2007 are available for
25.2 	grants or contracts to develop nutrient and conservation
25.3 	planning assistance information materials; and 
25.4 	(3) $100,000 in fiscal year 2006 and $800,000 in fiscal
25.5 	year 2007 are for research, evaluation, and effectiveness
25.6 	monitoring of agricultural practices in restoring impaired
25.7 	waters; of these amounts, $600,000 in fiscal year 2007 is
25.8 	available for grants or contracts for research, evaluations, and
25.9 	effectiveness monitoring of agricultural practices in restoring
25.10 	impaired waters, including on-farm demonstrations.
25.11 		Subd. 5.Board of water and soil resources. The
25.12 	following amounts are appropriated to the Board of Water and
25.13 	Soil Resources for restoration and prevention actions as
25.14 	described in Minnesota Statutes, section 114D.20, subdivisions 6
25.15 	and 7:
25.16 	(1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal
25.17 	year 2007 are for targeted nonpoint restoration cost-share and
25.18 	incentive payments; of these amounts, up to $450,000 in fiscal
25.19 	year 2006 and $5,450,000 in fiscal year 2007 are available for
25.20 	grants to soil and water conservation districts through the
25.21 	state cost share program authorized under Minnesota Statutes,
25.22 	section 103C.501;
25.23 	(2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal
25.24 	year 2007 are for targeted nonpoint restoration technical and
25.25 	engineering assistance activities; of these amounts, up to
25.26 	$412,000 in fiscal year 2006 and $3,250,000 in fiscal year 2007
25.27 	are available for grants to soil and water conservation
25.28 	districts, watershed management organizations, or counties to
25.29 	support nonpoint restoration implementation activities;
25.30 	(3) $200,000 in fiscal year 2007 is for reporting and
25.31 	evaluation of applied soil and water conservation practices;
25.32 	(4) $2,400,000 in fiscal year 2007 is for grants to
25.33 	counties for implementation of county individual sewage
25.34 	treatment systems programs through the local water resources
25.35 	protection and management program under Minnesota Statutes,
25.36 	section 103B.3369;
26.1 	(5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal
26.2 	year 2007 are for base and challenge grants to support nonpoint
26.3 	source protection activities related to lake and river
26.4 	protection and management through the local water resources
26.5 	protection and management program under Minnesota Statutes,
26.6 	section 103B.3369; and 
26.7 	(6) $2,400,000 in fiscal year 2007 is for grants to soil
26.8 	and water conservation districts for streambank, stream channel,
26.9 	lakeshore, and roadside protection and restoration projects
26.10 	through the state cost share program under Minnesota Statutes,
26.11 	section 103C.501.
26.12 		Subd. 6.Department of natural resources. The following
26.13 	amounts are appropriated to the Department of Natural Resources
26.14 	for the purposes stated:
26.15 	(1) $280,000 in fiscal year 2006 and $430,000 in fiscal
26.16 	year 2007 are for statewide assessment of surface water quality
26.17 	and trends; and 
26.18 	(2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal
26.19 	year 2007 are for restoration of impaired waters and actions to
26.20 	prevent waters from becoming impaired; of these amounts, up to
26.21 	$1,700,000 in fiscal year 2007 is available for grants and
26.22 	contracts for forest stewardship planning and implementation,
26.23 	and for research and monitoring.
26.24 		Subd. 7.Public facilities authority. $4,400,000 in
26.25 	fiscal year 2006 and $44,015,000 in fiscal year 2007 are
26.26 	appropriated to the Public Facilities Authority; of these
26.27 	amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in
26.28 	fiscal year 2007 are to the clean water legacy capital
26.29 	improvements fund for grants under Minnesota Statutes, section
26.30 	446A.073; $4,582,000 in fiscal year 2007 is to the small
26.31 	community wastewater treatment fund for loans under Minnesota
26.32 	Statutes, section 446A.074; and $22,433,000 in fiscal year 2007
26.33 	is to the water pollution control revolving fund under Minnesota
26.34 	Statutes, section 446.07, for wastewater treatment and
26.35 	stormwater projects.  Funds appropriated under this subdivision
26.36 	do not cancel and are available until expended.

27.1 	Sec. 13. EFFECTIVE DATE.
 27.2 	Sections 1 to 11 are effective the day following final
27.3 	enactment.  Section 12 is effective July 1, 2005.