1.1                          A bill for an act 
  1.2             relating to water; modifying wetland protection and 
  1.3             management provisions; amending Minnesota Statutes 
  1.4             1994, sections 103F.612, subdivisions 2, 3, 5, 6, and 
  1.5             7; 103G.005, subdivision 10a, and by adding 
  1.6             subdivisions; 103G.222; 103G.2241; 103G.2242, 
  1.7             subdivisions 1, 2, 4, 6, 7, 9, and 12; 103G.237, 
  1.8             subdivision 4, by adding a subdivision; 103G.2373; and 
  1.9             115.03, by adding a subdivision; repealing Minnesota 
  1.10            Statutes 1994, section 103G.2242, subdivision 13. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 103F.612, 
  1.13  subdivision 2, is amended to read: 
  1.14     Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
  1.15  the county where a wetland is located for designation of a 
  1.16  wetland preservation area in a high priority wetland area 
  1.17  identified in a comprehensive local water plan, as defined in 
  1.18  section 103B.3363, subdivision 3, and located within a high 
  1.19  priority wetland region designated by the board of water and 
  1.20  soil resources if the county chooses to accept wetland 
  1.21  preservation area applications.  The application must be made on 
  1.22  forms provided by the board.  If a wetland is located in more 
  1.23  than one county, the application must be submitted to the county 
  1.24  where the majority of the wetland is located.  
  1.25     (b) The application must contain at least the following 
  1.26  information and other information the board of soil and water 
  1.27  resources requires:  
  1.28     (1) legal description of the area to be approved, which 
  2.1   must include an upland strip at least 16-1/2 feet in width 
  2.2   around the perimeter of wetlands within the area and may include 
  2.3   total upland area of up to four acres for each acre of wetland; 
  2.4      (2) parcel identification numbers where designated by the 
  2.5   county auditor; 
  2.6      (3) name and address of the owner; 
  2.7      (4) a witnessed signature of the owner covenanting that the 
  2.8   land will be preserved as a wetland and will only be used in 
  2.9   accordance with conditions prescribed by the board of water and 
  2.10  soil resources; and 
  2.11     (5) a statement that the restrictive covenant will be 
  2.12  binding on the owner and the owner's successors or assigns, and 
  2.13  will run with the land.  
  2.14     (c) The upland strip required in paragraph (b), clause (1), 
  2.15  must be planted with permanent vegetation other than a noxious 
  2.16  weed. 
  2.17     (d) For registered property, the owner shall submit the 
  2.18  owner's duplicate certificate of title with the application.  
  2.19     Sec. 2.  Minnesota Statutes 1994, section 103F.612, 
  2.20  subdivision 3, is amended to read: 
  2.21     Subd. 3.  [REVIEW AND NOTICE.] Upon receipt of an 
  2.22  application, the county shall determine if all material required 
  2.23  by subdivision 2 has been submitted and, if so, shall determine 
  2.24  that the application is complete.  The term "date of application"
  2.25  means the date the application is determined to be complete by 
  2.26  the county.  The county shall send a copy of the application to 
  2.27  the county assessor, the regional development commission, where 
  2.28  applicable, the board of water and soil resources, and the soil 
  2.29  and water conservation district where the land is located.  The 
  2.30  soil and water conservation district shall prepare an advisory 
  2.31  statement of existing and potential preservation problems or 
  2.32  conflicts and send the statement to the owner of record and to 
  2.33  the county.  The county shall notify the landowner of the 
  2.34  acceptance or denial of the application within 60 days from the 
  2.35  date of the application. 
  2.36     Sec. 3.  Minnesota Statutes 1994, section 103F.612, 
  3.1   subdivision 5, is amended to read: 
  3.2      Subd. 5.  [COMMENCEMENT OF WETLAND PRESERVATION AREA.] The 
  3.3   wetland is a wetland preservation area commencing 30 days from 
  3.4   the date the county determines notifies the landowner of 
  3.5   acceptance of the application is complete under subdivision 3.  
  3.6      Sec. 4.  Minnesota Statutes 1994, section 103F.612, 
  3.7   subdivision 6, is amended to read: 
  3.8      Subd. 6.  [FEE.] The county may require an application fee, 
  3.9   not to exceed $50 to defray administrative costs of the program. 
  3.10     Sec. 5.  Minnesota Statutes 1994, section 103F.612, 
  3.11  subdivision 7, is amended to read: 
  3.12     Subd. 7.  [MAPS.] The board of water and soil resources 
  3.13  county shall maintain wetland preservation area maps 
  3.14  illustrating land covenanted as wetland preservation areas.  
  3.15     Sec. 6.  Minnesota Statutes 1994, section 103G.005, is 
  3.16  amended by adding a subdivision to read: 
  3.17     Subd. 2a.  [AGRICULTURAL LAND.] "Agricultural land" means: 
  3.18     (1) land used for horticultural, row, close grown, pasture, 
  3.19  and hayland crops; growing nursery stocks; and animal feedlots; 
  3.20  and 
  3.21     (2) contiguous land and buildings under the same ownership, 
  3.22  including farm yards, associated with activities under clause 
  3.23  (1). 
  3.24     Sec. 7.  Minnesota Statutes 1994, section 103G.005, is 
  3.25  amended by adding a subdivision to read: 
  3.26     Subd. 10a.  [INFRASTRUCTURE.] "Infrastructure" means storm 
  3.27  water and sanitary sewer piping, outfalls, inlets, culverts, 
  3.28  bridges, and any other work defined specifically by a local 
  3.29  government unit as constituting a capital improvement to a 
  3.30  specific parcel within the context of an approved development 
  3.31  plan, but does not include roads or drainage systems. 
  3.32     Sec. 8.  Minnesota Statutes 1994, section 103G.005, 
  3.33  subdivision 10a, is amended to read: 
  3.34     Subd. 10a 10b.  [LOCAL GOVERNMENT UNIT.] "Local government 
  3.35  unit" means: 
  3.36     (1) outside of the seven-county metropolitan area, a city 
  4.1   council or county board of commissioners; and 
  4.2      (2) in the seven-county metropolitan area, a city council, 
  4.3   a town board under section 368.01, or a watershed management 
  4.4   organization under section 103B.211. 
  4.5      Sec. 9.  Minnesota Statutes 1994, section 103G.005, is 
  4.6   amended by adding a subdivision to read: 
  4.7      Subd. 18a.  [PRESETTLEMENT WETLAND.] "Presettlement wetland"
  4.8   means a wetland or public waters wetland that existed in this 
  4.9   state prior to statehood in 1858. 
  4.10     Sec. 10.  Minnesota Statutes 1994, section 103G.005, is 
  4.11  amended by adding a subdivision to read: 
  4.12     Subd. 18b.  [SHORELAND WETLAND PROTECTION ZONE.] "Shoreland 
  4.13  wetland protection zone" means: 
  4.14     (1) land within 1,000 feet from the normal high water level 
  4.15  of a lake, pond, or flowage identified on the public waters 
  4.16  inventory under section 103G.201 that is at least ten acres in 
  4.17  size within municipalities and at least 25 acres in size in 
  4.18  unincorporated areas; or 
  4.19     (2) land within 300 feet from the normal high water level 
  4.20  of a river or stream identified on the public waters inventory, 
  4.21  under section 103G.201. 
  4.22     Sec. 11.  Minnesota Statutes 1994, section 103G.005, is 
  4.23  amended by adding a subdivision to read: 
  4.24     Subd. 18c.  [SILVICULTURE.] "Silviculture" means the 
  4.25  scientific management of forest trees. 
  4.26     Sec. 12.  Minnesota Statutes 1994, section 103G.005, is 
  4.27  amended by adding a subdivision to read: 
  4.28     Subd. 18d.  [UTILITY.] "Utility" means a sanitary sewer, 
  4.29  storm sewer, potable water distribution, and transmission, 
  4.30  distribution, or furnishing, at wholesale or retail, of natural 
  4.31  or manufactured gas, electricity, telephone, radio service, or 
  4.32  communications. 
  4.33     Sec. 13.  Minnesota Statutes 1994, section 103G.222, is 
  4.34  amended to read: 
  4.35     103G.222 [REPLACEMENT OF WETLANDS.] 
  4.36     (a) After the effective date of the rules adopted under 
  5.1   section 103B.3355 or 103G.2242, whichever is later, wetlands 
  5.2   must not be drained or filled, wholly or partially, unless 
  5.3   replaced by restoring or creating wetland areas of at least 
  5.4   equal public value under a replacement plan approved as provided 
  5.5   in section 103G.2242, a replacement plan under a local 
  5.6   governmental unit's comprehensive wetland protection and 
  5.7   management plan approved by the board under section 103G.2242, 
  5.8   subdivision 1, paragraph (c), or, if a permit to mine is 
  5.9   required under section 93.481, under a mining reclamation plan 
  5.10  approved by the commissioner under the permit to mine.  Mining 
  5.11  reclamation plans shall apply the same principles and standards 
  5.12  for replacing wetlands by restoration or creation of wetland 
  5.13  areas that are applicable to mitigation plans approved as 
  5.14  provided in section 103G.2242. 
  5.15     (b) Replacement must be guided by the following principles 
  5.16  in descending order of priority: 
  5.17     (1) avoiding the direct or indirect impact of the activity 
  5.18  that may destroy or diminish the wetland; 
  5.19     (2) minimizing the impact by limiting the degree or 
  5.20  magnitude of the wetland activity and its implementation; 
  5.21     (3) rectifying the impact by repairing, rehabilitating, or 
  5.22  restoring the affected wetland environment; 
  5.23     (4) reducing or eliminating the impact over time by 
  5.24  preservation and maintenance operations during the life of the 
  5.25  activity; and 
  5.26     (5) compensating for the impact by replacing or providing 
  5.27  substitute wetland resources or environments. 
  5.28     For a project involving the draining or filling of wetlands 
  5.29  in an amount not exceeding 10,000 square feet more than the 
  5.30  applicable amount in section 103G.2241, subdivision 10, the 
  5.31  local government unit may make a sequencing determination 
  5.32  without a written alternatives analysis from the applicant. 
  5.33     (c) If a wetland is located in a cultivated field, then 
  5.34  replacement must be accomplished through restoration only 
  5.35  without regard to the priority order in paragraph (b), provided 
  5.36  that a deed restriction is placed on the altered wetland 
  6.1   prohibiting nonagricultural use for at least ten years.  
  6.2      (d) Restoration and replacement of wetlands must be 
  6.3   accomplished in accordance with the ecology of the landscape 
  6.4   area affected. 
  6.5      (e) Replacement shall be within the same watershed or 
  6.6   county as the impacted wetlands, as based on the wetland 
  6.7   evaluation in section 103G.2242, subdivision 2, except that 
  6.8   counties or watersheds in which 80 percent or more of the 
  6.9   presettlement wetland acreage is intact may accomplish 
  6.10  replacement in counties or watersheds in which 50 percent or 
  6.11  more of the presettlement wetland acreage has been filled, 
  6.12  drained, or otherwise degraded.  Except for the replacement of 
  6.13  impacted wetlands in counties or watersheds that have less than 
  6.14  80 percent presettlement wetlands remaining with wetlands in 
  6.15  counties or watersheds that have more than 80 percent 
  6.16  presettlement wetlands remaining, wetlands impacted by public 
  6.17  transportation projects may be replaced statewide, provided they 
  6.18  are approved by the commissioner under an established wetland 
  6.19  banking system, or under the rules for wetland banking as 
  6.20  provided for under section 103G.2242. 
  6.21     (f) Except as provided in paragraph (g), for a wetland 
  6.22  located on nonagricultural land, replacement must be in the 
  6.23  ratio of two acres of replaced wetland for each acre of drained 
  6.24  or filled wetland. 
  6.25     (g) For a wetland located on agricultural land or in 
  6.26  counties or watersheds, affected by a public transportation 
  6.27  project, or located in a county or watershed in which 80 percent 
  6.28  or more of the presettlement wetland acreage exists, replacement 
  6.29  must be in the ratio of one acre of replaced wetland for each 
  6.30  acre of drained or filled wetland, except that when wetland 
  6.31  replacement for public transportation projects is done by 
  6.32  creation in counties or watersheds with less than 80 percent of 
  6.33  presettlement wetlands remaining, the replacement must be a 
  6.34  minimum ratio of two acres of replaced wetland for each acre of 
  6.35  drained or filled wetland. 
  6.36     (h) Wetlands that are restored or created as a result of an 
  7.1   approved replacement plan are subject to the provisions of this 
  7.2   section for any subsequent drainage or filling. 
  7.3      (i) Except in counties or watersheds where 80 percent or 
  7.4   more of the presettlement wetlands are intact, only wetlands 
  7.5   that have been restored from previously drained or filled 
  7.6   wetlands, wetlands created by excavation in nonwetlands, 
  7.7   wetlands created by dikes or dams along public or private 
  7.8   drainage ditches, or wetlands created by dikes or dams 
  7.9   associated with the restoration of previously drained or filled 
  7.10  wetlands may be used in a statewide banking program established 
  7.11  in rules adopted under section 103G.2242, subdivision 1.  
  7.12  Modification or conversion of nondegraded naturally occurring 
  7.13  wetlands from one type to another are not eligible for 
  7.14  enrollment in a statewide wetlands bank. 
  7.15     (j) The technical evaluation panel established under 
  7.16  section 103G.2242, subdivision 2, shall ensure that sufficient 
  7.17  time has occurred for the wetland to develop wetland 
  7.18  characteristics of soils, vegetation, and hydrology before 
  7.19  recommending that the wetland be deposited in the statewide 
  7.20  wetland bank.  If the technical evaluation panel has reason to 
  7.21  believe that the wetland characteristics may change 
  7.22  substantially, the panel shall postpone its recommendation until 
  7.23  the wetland has stabilized. 
  7.24     (k) This section and sections 103G.223 to 103G.2242, 
  7.25  103G.2364, and 103G.2365 apply to the state and its departments 
  7.26  and agencies. 
  7.27     (1) For projects involving filling of wetlands associated 
  7.28  with a public transportation project in counties or watersheds 
  7.29  with more than 80 percent of their presettlement wetland 
  7.30  remaining, local government public transportation authorities 
  7.31  may purchase credits from the state wetland bank established 
  7.32  with proceeds from Laws 1994, chapter 643, section 26, 
  7.33  subdivision 3, paragraph (c).  Wetland banking credits may be 
  7.34  purchased at the lesser of the following:  
  7.35     (1) the cost to the state to establish the credits; 
  7.36     (2) two times the Minnesota department of revenue 
  8.1   determined average estimated market value of agricultural land 
  8.2   in the township where the road project is located; or 
  8.3      (3) two times the average value of the land in the 
  8.4   immediate vicinity of the road project as determined by the 
  8.5   county assessor.  In no case shall the purchase price be less 
  8.6   than $400 per acre. 
  8.7      (m) Before authorizing any wetland drain or fill activity, 
  8.8   the local government unit must consider how extensively the 
  8.9   proposed activity would affect the following functional 
  8.10  qualities of the wetland: 
  8.11     (1) floodwater retention; 
  8.12     (2) nutrient assimilation; 
  8.13     (3) sediment entrapment; 
  8.14     (4) groundwater recharge; 
  8.15     (5) low flow augmentation; 
  8.16     (6) wildlife and fisheries habitat; 
  8.17     (7) critical habit for endangered plants and animals; 
  8.18     (8) floral diversity and integrity; 
  8.19     (9) aesthetics, recreation, and education; or 
  8.20     (10) commercial uses. 
  8.21     If, based on an assessment of clauses (1) to (10) and 
  8.22  concurrence of the technical evaluation panel, the overall 
  8.23  functional qualities of the replacement site exceed those of the 
  8.24  impacted wetland, the local government unit may elect not to 
  8.25  require that replacement exceed the minimum acreage required by 
  8.26  paragraphs (f) and (g). 
  8.27     Sec. 14.  Minnesota Statutes 1994, section 103G.2241, is 
  8.28  amended to read: 
  8.29     103G.2241 [EXEMPTIONS.] 
  8.30     (a) Subject to the conditions in paragraph (b), a 
  8.31  replacement plan for wetlands is not required for:  
  8.32     (1) activities in a wetland that was planted with annually 
  8.33  seeded crops, was in a crop rotation seeding of pasture grasses 
  8.34  or legumes, or was required to be set aside to receive price 
  8.35  support or other payments under United States Code, title 7, 
  8.36  sections 1421 to 1469, in six of the last ten years prior to 
  9.1   January 1, 1991; 
  9.2      (2) activities in a wetland that is or has been enrolled in 
  9.3   the federal conservation reserve program under United States 
  9.4   Code, title 16, section 3831, that: 
  9.5      (i) was planted with annually seeded crops, was in a crop 
  9.6   rotation seeding, or was required to be set aside to receive 
  9.7   price support or payment under United States Code, title 7, 
  9.8   sections 1421 to 1469, in six of the last ten years prior to 
  9.9   being enrolled in the program; and 
  9.10     (ii) has not been restored with assistance from a public or 
  9.11  private wetland restoration program; 
  9.12     (3) activities necessary to repair and maintain existing 
  9.13  public or private drainage systems as long as wetlands that have 
  9.14  been in existence for more than 20 years are not drained; 
  9.15     (4) activities in a wetland that has received a commenced 
  9.16  drainage determination provided for by the federal Food Security 
  9.17  Act of 1985, that was made to the county agricultural 
  9.18  stabilization and conservation service office prior to September 
  9.19  19, 1988, and a ruling and any subsequent appeals or reviews 
  9.20  have determined that drainage of the wetland had been commenced 
  9.21  prior to December 23, 1985; 
  9.22     (5) activities exempted from federal regulation under 
  9.23  United States Code, title 33, section 1344(f); 
  9.24     (6) activities authorized under, and conducted in 
  9.25  accordance with, an applicable general permit issued by the 
  9.26  United States Army Corps of Engineers under section 404 of the 
  9.27  federal Clean Water Act, United States Code, title 33, section 
  9.28  1344, except the nationwide permit in Code of Federal 
  9.29  Regulations, title 33, section 330.5, paragraph (a), clause 
  9.30  (14), limited to when a new road crosses a wetland, and all of 
  9.31  clause (26); 
  9.32     (7) activities in a type 1 wetland on agricultural land, as 
  9.33  defined in United States Fish and Wildlife Circular No. 39 (1971 
  9.34  edition) except for bottomland hardwood type 1 wetlands; 
  9.35     (8) activities in a type 2 wetland that is two acres in 
  9.36  size or less located on agricultural land; 
 10.1      (9) activities in a wetland restored for conservation 
 10.2   purposes under a contract or easement providing the landowner 
 10.3   with the right to drain the restored wetland; 
 10.4      (10) activities in a wetland created solely as a result of: 
 10.5      (i) beaver dam construction; 
 10.6      (ii) blockage of culverts through roadways maintained by a 
 10.7   public or private entity; 
 10.8      (iii) actions by public entities that were taken for a 
 10.9   purpose other than creating the wetland; or 
 10.10     (iv) any combination of (i) to (iii); 
 10.11     (11) placement, maintenance, repair, enhancement, or 
 10.12  replacement of utility or utility-type service, including the 
 10.13  transmission, distribution, or furnishing, at wholesale or 
 10.14  retail, of natural or manufactured gas, electricity, telephone, 
 10.15  or radio service or communications if: 
 10.16     (i) the impacts of the proposed project on the hydrologic 
 10.17  and biological characteristics of the wetland have been avoided 
 10.18  and minimized to the extent possible; and 
 10.19     (ii) the proposed project significantly modifies or alters 
 10.20  less than one-half acre of wetlands; 
 10.21     (12) activities associated with routine maintenance of 
 10.22  utility and pipeline rights-of-way, provided the activities do 
 10.23  not result in additional intrusion into the wetland; 
 10.24     (13) alteration of a wetland associated with the operation, 
 10.25  maintenance, or repair of an interstate pipeline; 
 10.26     (14) temporarily crossing or entering a wetland to perform 
 10.27  silvicultural activities, including timber harvest as part of a 
 10.28  forest management activity, so long as the activity limits the 
 10.29  impact on the hydrologic and biologic characteristics of the 
 10.30  wetland; the activities do not result in the construction of 
 10.31  dikes, drainage ditches, tile lines, or buildings; and the 
 10.32  timber harvesting and other silvicultural practices do not 
 10.33  result in the drainage of the wetland or public waters; 
 10.34     (15) permanent access for forest roads across wetlands so 
 10.35  long as the activity limits the impact on the hydrologic and 
 10.36  biologic characteristics of the wetland; the construction 
 11.1   activities do not result in the access becoming a dike, drainage 
 11.2   ditch or tile line; with filling avoided wherever possible; and 
 11.3   there is no drainage of the wetland or public waters; 
 11.4      (16) draining or filling up to one-half acre of wetlands 
 11.5   for the repair, rehabilitation, or replacement of a previously 
 11.6   authorized, currently serviceable existing public road, provided 
 11.7   that minor deviations in the public road's configuration or 
 11.8   filled area, including those due to changes in materials, 
 11.9   construction techniques, or current construction codes or safety 
 11.10  standards, that are necessary to make repairs, rehabilitation, 
 11.11  or replacement are allowed if the wetland draining or filling 
 11.12  resulting from the repair, rehabilitation, or replacement is 
 11.13  minimized; 
 11.14     (17) emergency repair and normal maintenance and repair of 
 11.15  existing public works, provided the activity does not result in 
 11.16  additional intrusion of the public works into the wetland and do 
 11.17  not result in the draining or filling, wholly or partially, of a 
 11.18  wetland; 
 11.19     (18) normal maintenance and minor repair of structures 
 11.20  causing no additional intrusion of an existing structure into 
 11.21  the wetland, and maintenance and repair of private crossings 
 11.22  that do not result in the draining or filling, wholly or 
 11.23  partially, of a wetland; 
 11.24     (19) duck blinds; 
 11.25     (20) aquaculture activities, including pond excavation and 
 11.26  construction and maintenance of associated access roads and 
 11.27  dikes authorized under, and conducted in accordance with, a 
 11.28  permit issued by the United States Army Corps of Engineers under 
 11.29  section 404 of the federal Clean Water Act, United States Code, 
 11.30  title 33, section 1344, but not including construction or 
 11.31  expansion of buildings; 
 11.32     (21) wild rice production activities, including necessary 
 11.33  diking and other activities authorized under a permit issued by 
 11.34  the United States Army Corps of Engineers under section 404 of 
 11.35  the federal Clean Water Act, United States Code, title 33, 
 11.36  section 1344; 
 12.1      (22) normal agricultural practices to control pests or 
 12.2   weeds, defined by rule as either noxious or secondary weeds, in 
 12.3   accordance with applicable requirements under state and federal 
 12.4   law, including established best management practices; 
 12.5      (23) activities in a wetland that is on agricultural land 
 12.6   annually enrolled in the federal Food, Agricultural, 
 12.7   Conservation, and Trade Act of 1990, United States Code, title 
 12.8   16, section 3821, subsection (a), clauses (1) to (3), as 
 12.9   amended, and is subject to sections 1421 to 1424 of the federal 
 12.10  act in effect on January 1, 1991, except that land enrolled in a 
 12.11  federal farm program is eligible for easement participation for 
 12.12  those acres not already compensated under a federal program; 
 12.13     (24) development projects and ditch improvement projects in 
 12.14  the state that have received preliminary or final plat approval, 
 12.15  or infrastructure that has been installed, or having local site 
 12.16  plan approval, conditional use permits, or similar official 
 12.17  approval by a governing body or government agency, within five 
 12.18  years before July 1, 1991.  In the seven-county metropolitan 
 12.19  area and in cities of the first and second class, plat approval 
 12.20  must be preliminary as approved by the appropriate governing 
 12.21  body; and 
 12.22     (25) activities that result in the draining or filling of 
 12.23  less than 400 square feet of wetlands. 
 12.24     (b) For the purpose of paragraph (a), clause (16), 
 12.25  "currently serviceable" means usable as is or with some 
 12.26  maintenance, but not so degraded as to essentially require 
 12.27  reconstruction.  Paragraph (a), clause (16), authorizes the 
 12.28  repair, rehabilitation, or replacement of public roads destroyed 
 12.29  by storms, floods, fire, or other discrete events, provided the 
 12.30  repair, rehabilitation, or replacement is commenced or under 
 12.31  contract to commence within two years of the occurrence of the 
 12.32  destruction or damage. 
 12.33     (c) A person conducting an activity in a wetland under an 
 12.34  exemption in paragraph (a) shall ensure that: 
 12.35     (1) appropriate erosion control measures are taken to 
 12.36  prevent sedimentation of the water; 
 13.1      (2) the activity does not block fish passage in a 
 13.2   watercourse; and 
 13.3      (3) the activity is conducted in compliance with all other 
 13.4   applicable federal, state, and local requirements, including 
 13.5   best management practices and water resource protection 
 13.6   requirements established under chapter 103H. 
 13.7      Subdivision 1.  [AGRICULTURAL ACTIVITIES.] A replacement 
 13.8   plan for wetlands is not required for: 
 13.9      (1) activities in a wetland that was planted with annually 
 13.10  seeded crops, was in a crop rotation seeding of pasture grasses 
 13.11  or legumes, or was required to be set aside to receive price 
 13.12  support or other payments under United States Code, title 7, 
 13.13  sections 1421 to 1469, in six of the last ten years prior to 
 13.14  January 1, 1991; 
 13.15     (2) activities in a wetland that is or has been enrolled in 
 13.16  the federal Conservation Reserve Program under United States 
 13.17  Code, title 16, section 3831, that: 
 13.18     (i) was planted with annually seeded crops, was in a crop 
 13.19  rotation seeding, or was required to be set aside to receive 
 13.20  price support or payment under United States Code, title 7, 
 13.21  sections 1421 to 1469, in six of the last ten years prior to 
 13.22  being enrolled in the program; and 
 13.23     (ii) has not been restored with assistance from a public or 
 13.24  private wetland restoration program; 
 13.25     (3) activities in a wetland that have received a commenced 
 13.26  drainage determination provided for by the federal Food Security 
 13.27  Act of 1985, that was made to the county agricultural 
 13.28  stabilization and conservation service office prior to September 
 13.29  19, 1988, and a ruling and any subsequent appeals or reviews 
 13.30  have determined that drainage of the wetland had been commenced 
 13.31  prior to December 23, 1985; 
 13.32     (4) activities in type 1 wetland on agricultural land, as 
 13.33  defined in United States Fish and Wildlife Circular No. 39 (1971 
 13.34  edition) except for bottomland hardwood type 1 wetlands, and 
 13.35  activities in a type 2 or type 6 wetland that is less than two 
 13.36  acres in size and located on agricultural land.  A local 
 14.1   government unit may expand the application of this clause to 
 14.2   additional acreage of types 1, 2, and 6 wetlands that are part 
 14.3   of a larger wetland system, when the additional acreage is part 
 14.4   of a conservation plan prepared by the local soil and water 
 14.5   conservation district, the additional draining or filling is 
 14.6   necessary for efficient operation of the farm, and wetlands 
 14.7   other than types 1, 2, and 6 are not drained or filled; 
 14.8      (5) aquaculture activities including pond excavation and 
 14.9   construction and maintenance of associated access roads and 
 14.10  dikes authorized under, and conducted in accordance with, a 
 14.11  permit issued by the United States Army Corps of Engineers under 
 14.12  section 404 of the federal Clean Water Act, United States Code, 
 14.13  title 33, section 1344, but not including construction or 
 14.14  expansion of buildings; 
 14.15     (6) wild rice production activities, including necessary 
 14.16  diking and other activities authorized under a permit issued by 
 14.17  the United States Army Corps of Engineers under section 404 of 
 14.18  the federal Clean Water Act, United States Code, title 33, 
 14.19  section 1344; 
 14.20     (7) normal agricultural practices to control pests or 
 14.21  weeds, defined as either noxious or secondary weeds, in 
 14.22  accordance with applicable requirements under state and federal 
 14.23  law, including established best management practices; and 
 14.24     (8) agricultural activities in a wetland that is on 
 14.25  agricultural land annually enrolled in the federal Food, 
 14.26  Agricultural, Conservation, and Trade Act of 1990, United States 
 14.27  Code, title 16, section 3821, subsection (a), clauses (1) to 
 14.28  (3), as amended, and is subject to sections 1421 to 1424 of the 
 14.29  federal act in effect on January 1, 1991, except that land 
 14.30  enrolled in a federal farm program is eligible for easement 
 14.31  participation for those acres not already compensated under a 
 14.32  federal program. 
 14.33     Subd. 2.  [DRAINAGE.] A replacement plan for wetlands is 
 14.34  not required for activities: 
 14.35     (1) necessary to repair and maintain existing public or 
 14.36  private drainage systems as long as wetlands are not drained 
 15.1   beyond the level that existed 25 years prior to the drainage 
 15.2   request; 
 15.3      (2) which fill wetlands that have been in existence for 
 15.4   more than 25 years when the wetlands are located within the 
 15.5   right-of-way acreage of the ditch or within a one rod width on 
 15.6   either side of the ditch, whichever is greater, and the filling 
 15.7   is limited to the side casting of spoil materials resulting from 
 15.8   the maintenance and the spoil deposition area is permanently 
 15.9   seeded into grass after maintenance activities are completed; 
 15.10     (3) which lower the elevation of previously placed tile 
 15.11  when made necessary by land subsidence provided the lowering 
 15.12  does not drain additional wetlands; 
 15.13     (4) which drain wetlands that have formed in the bottom of 
 15.14  ditches or were created solely as a result of beaver activity; 
 15.15     (5) necessary to maintain ditches immediately adjacent to 
 15.16  or on land that was planted with annually seeded crops, was in a 
 15.17  crop rotation seeding of pasture grasses or legumes, or was 
 15.18  required to be set aside to receive price supports or other 
 15.19  payments under United States Code, title 7, sections 1421 to 
 15.20  1469, in six of the last ten years prior to January 1, 1991; 
 15.21     (6) which drain type 1 wetlands, except for bottomland 
 15.22  hardwoods, on agricultural land; and 
 15.23     (7) which drain type 2 and type 6 wetlands less than two 
 15.24  acres in size on agricultural land; or 
 15.25     (8) activities conducted as part of a public drainage 
 15.26  system improvement project provided that: 
 15.27     (i) final approval from the ditch authority was received 
 15.28  before July 1, 1991, and after July 1, 1986; 
 15.29     (ii) the approval remains valid; 
 15.30     (iii) the project remains active; and 
 15.31     (iv) no additional drainage or filling will occur beyond 
 15.32  that originally approved. 
 15.33     Subd. 3.  [FEDERAL APPROVALS.] A replacement plan for 
 15.34  wetlands is not required for: 
 15.35     (1) activities exempted from federal regulation under 
 15.36  United States Code, title 33, section 1344(f), as in effect on 
 16.1   January 1, 1991; or 
 16.2      (2) activities authorized under, and conducted in 
 16.3   accordance with, an applicable general permit issued by the 
 16.4   United States Army Corps of Engineers under section 404 of the 
 16.5   federal Clean Water Act, United States Code, title 33, section 
 16.6   1344, except the nationwide permit in Code of Federal 
 16.7   Regulations, title 33, section 330.5, paragraph (a), clauses 
 16.8   (14), limited to when a new road crosses a wetland, and all of 
 16.9   (26), as in effect on January 1, 1991. 
 16.10     Subd. 4.  [WETLAND RESTORATIONS.] A replacement plan for 
 16.11  wetlands is not required for activities in a wetland restored 
 16.12  for conservation purposes under a contract or easement providing 
 16.13  the landowner with the right to drain the restored wetland. 
 16.14     Subd. 5.  [INCIDENTAL WETLANDS.] A replacement plan for 
 16.15  wetlands is not required for activities in a wetland created 
 16.16  solely as a result of: 
 16.17     (1) beaver dam construction; 
 16.18     (2) blockage of culverts through roadways maintained by a 
 16.19  public or private entity; 
 16.20     (3) actions by public or private entities that were taken 
 16.21  for a purpose other than creating the wetland; or 
 16.22     (4) any combination of clauses (1) to (3). 
 16.23     Subd. 6.  [UTILITIES; PUBLIC WORKS; INFRASTRUCTURE.] A 
 16.24  replacement plan for wetlands is not required for: 
 16.25     (1) placement, maintenance, repair, enhancement, or 
 16.26  replacement of utility or utility-type service, including the 
 16.27  transmission, distribution, or furnishing, at wholesale or 
 16.28  retail, of natural or manufactured gas, electricity, telephone, 
 16.29  or radio service of communications if: 
 16.30     (i) the impacts of proposed project on the hydrologic and 
 16.31  biological characteristics of the wetland have been avoided and 
 16.32  minimized to the extent possible; and 
 16.33     (ii) the proposed project significantly modifies or alters 
 16.34  less than one-half acre of wetlands; 
 16.35     (2) activities associated with routine maintenance of 
 16.36  utility and pipeline rights-of-way, provided the activities do 
 17.1   not result in additional intrusion into the wetland; 
 17.2      (3) alteration of a wetland associated with the operation, 
 17.3   maintenance, or repair of an interstate pipeline within all 
 17.4   existing or acquired interstate pipeline rights-of-way; 
 17.5      (4) emergency repair and normal maintenance and repair of 
 17.6   existing public works, provided the activity does not result in 
 17.7   additional intrusion of the public works into the wetland and 
 17.8   does not result in the draining or filling, wholly or partially, 
 17.9   of a wetland; 
 17.10     (5) normal maintenance and minor repair of structures 
 17.11  causing no additional intrusion of an existing structure into 
 17.12  the wetland, and maintenance and repair of private crossings 
 17.13  that do not result in the draining or filling, wholly or 
 17.14  partially, of a wetland; or 
 17.15     (6) repair and updating of existing individual sewage 
 17.16  treatment systems as necessary to comply with local, state, and 
 17.17  federal regulations.  
 17.18     Subd. 7.  [FORESTRY.] A replacement plan for wetlands is 
 17.19  not required for:  
 17.20     (1) temporarily crossing or entering a wetland to perform 
 17.21  silvicultural activities, including timber harvest as part of a 
 17.22  forest management activity, so long as the activity limits the 
 17.23  impact on the hydrologic and biologic characteristics of the 
 17.24  wetland; the activities do not result in the construction of 
 17.25  dikes, drainage ditches, tile lines, or buildings; and the 
 17.26  timber harvesting and other silvicultural practices do not 
 17.27  result in the drainage of the wetland or public waters; or 
 17.28     (2) permanent access for forest roads across wetlands so 
 17.29  long as the activity limits the impact on the hydrologic and 
 17.30  biologic characteristics of the wetland; the construction 
 17.31  activities do not result in the access becoming a dike, drainage 
 17.32  ditch, or tile line; with filling avoided wherever possible; and 
 17.33  there is no drainage of the wetland or public waters. 
 17.34     Subd. 8.  [PUBLIC ROADS.] A replacement plan for wetlands 
 17.35  is not required for filling of wetlands up to the amounts in 
 17.36  clauses (1) to (3) per project within the existing road 
 18.1   right-of-way for the repair, rehabilitation, or replacement of a 
 18.2   previously authorized, currently serviceable existing public 
 18.3   road to meet state or federal standards or requirements:  
 18.4      (1) one-half acre of wetlands outside of shoreland wetland 
 18.5   protection zones in counties or watersheds with less than 50 
 18.6   percent of their presettlement wetlands remaining; 
 18.7      (2) one acre of wetlands outside of shoreland wetland 
 18.8   protection zones in counties or watersheds with greater than 80 
 18.9   percent of their presettlement wetlands remaining; or 
 18.10     (3) two acres of wetlands outside of shoreland wetland 
 18.11  protection zones in counties or watersheds with greater than 80 
 18.12  percent of their presettlement wetlands remaining. 
 18.13     For the purpose of this subdivision, "currently serviceable"
 18.14  means usable as is or with some maintenance, but not so degraded 
 18.15  as to essentially require reconstruction.  This subdivision 
 18.16  authorizes the repair, rehabilitation, or replacement of public 
 18.17  roads destroyed by storms, floods, fire, or other discrete 
 18.18  events, provided the repair, rehabilitation, or replacement is 
 18.19  commenced or under contract to commence within two years of the 
 18.20  occurrence of the destruction or damage. 
 18.21     Subd. 9.  [APPROVED DEVELOPMENT.] A replacement plan for 
 18.22  wetlands is not required for development projects and ditch 
 18.23  improvement projects in the state that have received preliminary 
 18.24  or final plat approval or infrastructure that has been installed 
 18.25  or has local site plan approval, conditional use permits, or 
 18.26  similar official approval by a governing body or government 
 18.27  agency within five years before July 1, 1991.  In the 
 18.28  seven-county metropolitan area and in cities of the first and 
 18.29  second class, plat approval must be preliminary as approved by 
 18.30  the appropriate governing body. 
 18.31     Subd. 10.  [DE MINIMUS.] (a) A replacement plan for 
 18.32  wetlands is not required for filling of the following amounts of 
 18.33  wetlands as part of a project, regardless of the total amount of 
 18.34  wetlands filled as part of a project: 
 18.35     (1) 10,000 square feet of wetland type 1, type 2, type 6, 
 18.36  type 7, or type 8, outside of the shoreland wetland protection 
 19.1   zone in counties or watersheds with more than 80 percent of 
 19.2   their presettlement wetlands remaining; 
 19.3      (2) 5,000 square feet of wetland type 1, type 2, type 6, or 
 19.4   type 7 outside of the shoreland wetland protection zone in 
 19.5   counties or watersheds with 50 to 80 percent of their 
 19.6   presettlement wetlands remaining; 
 19.7      (3) 2,000 square feet of wetland type 1, type 2, or type 6, 
 19.8   outside of the shoreland wetland protection zone in counties or 
 19.9   watersheds with less than 50 percent of their presettlement 
 19.10  wetlands remaining; 
 19.11     (4) 400 square feet of wetland types not listed in clauses 
 19.12  (1) to (3) outside of shoreland wetland protection zones in all 
 19.13  counties; or 
 19.14     (5) 400 square feet of wetland types 1 to 8 in the 
 19.15  shoreland wetland protection zone, except that in counties or 
 19.16  watersheds with more than 80 percent of their presettlement 
 19.17  wetlands remaining, the local government unit may increase the 
 19.18  de minimus amount to 1,000 square feet in the shoreland 
 19.19  protection zone in areas beyond the building setback if the 
 19.20  wetland is isolated and is determined to have no hydrologic 
 19.21  connection to the public water. 
 19.22     (b) The amounts listed in paragraph (a), clauses (1) to 
 19.23  (5), may not be combined on a project.  
 19.24     (c) This exemption no longer applies to a wetland when the 
 19.25  cumulative area drained or filled since January 1, 1992, is the 
 19.26  greater of the applicable area listed in paragraph (a), clauses 
 19.27  (1) to (5), or five percent of the total area of the wetland.  
 19.28     (d) Each riparian property owner as of January 1, 1992, is 
 19.29  entitled to an equal portion of the amounts specified in 
 19.30  paragraph (a), clauses (1) to (5), subject to the conditions in 
 19.31  paragraph (c).  
 19.32     Subd. 11.  [WILDLIFE HABITAT.] A replacement plan for 
 19.33  wetlands is not required for: 
 19.34     (1) deposition of spoil resulting from excavation within a 
 19.35  wetland for a wildlife habitat improvement project, if:  
 19.36     (i) the area of deposition does not exceed five percent of 
 20.1   the wetland area or one-half acre, whichever is less, and the 
 20.2   spoil is stabilized and permanently seeded to prevent erosion; 
 20.3      (ii) the project does not have an adverse impact on any 
 20.4   species designated as endangered or threatened under state or 
 20.5   federal law; and 
 20.6      (iii) the project will provide wildlife habitat improvement 
 20.7   as certified by the soil and water conservation district; or 
 20.8      (2) duck blinds.  
 20.9      Subd. 12.  [EXEMPTION CONDITIONS.] (a) A person conducting 
 20.10  an activity in a wetland under an exemption in subdivisions 1 to 
 20.11  11 shall ensure that:  
 20.12     (1) appropriate erosion control measures are taken to 
 20.13  prevent sedimentation of the water; 
 20.14     (2) the activity does not block fish passage in a 
 20.15  watercourse; and 
 20.16     (3) the activity is conducted in compliance with all other 
 20.17  applicable federal, state, and local requirements, including 
 20.18  best management practices and water resource protection 
 20.19  requirements established under chapter 103H.  
 20.20     (b) An activity is exempt if it qualifies for one of the 
 20.21  exemptions, even though it may be indicated as not exempt under 
 20.22  another exemption.  Only one exemption may apply per project. 
 20.23     Sec. 15.  Minnesota Statutes 1994, section 103G.2242, 
 20.24  subdivision 1, is amended to read: 
 20.25     Subdivision 1.  [RULES.] (a) By July 1, 1993, The board, in 
 20.26  consultation with the commissioner, shall adopt rules governing 
 20.27  the approval of wetland value replacement plans under this 
 20.28  section.  These rules must address the criteria, procedure, 
 20.29  timing, and location of acceptable replacement of wetland 
 20.30  values; may address the state establishment and administration 
 20.31  of a wetland banking program for public and private projects, 
 20.32  which may include provisions allowing monetary payment to the 
 20.33  wetland banking program for alteration of wetlands on 
 20.34  agricultural land; the methodology to be used in identifying and 
 20.35  evaluating wetland functions; the administrative, monitoring, 
 20.36  and enforcement procedures to be used; and a procedure for the 
 21.1   review and appeal of decisions under this section.  In the case 
 21.2   of peatlands, the replacement plan rules must consider the 
 21.3   impact on carbon balance described in the report required by 
 21.4   Laws 1990, chapter 587, and include the planting of trees or 
 21.5   shrubs. 
 21.6      (b) After the adoption of the rules, a replacement plan 
 21.7   must be approved by a resolution of the governing body of the 
 21.8   local government unit, consistent with the provisions of the 
 21.9   rules. 
 21.10     (c) The board may approve as an alternative to the rules 
 21.11  adopted under this subdivision a comprehensive wetland 
 21.12  protection and management plan developed by a local government 
 21.13  unit, provided that the plan: 
 21.14     (1) the plan incorporates sections 103A.201, subdivision 2, 
 21.15  103B.3355, and 103G.222; 
 21.16     (2) a request is made at the beginning of the planning 
 21.17  process to the board, the department of natural resources, the 
 21.18  pollution control agency, other local government units, and 
 21.19  local citizens to actively participate in the development of the 
 21.20  plan; and 
 21.21     (3) the plan is adopted as part of an approved local water 
 21.22  plan under sections 103B.231 and 103B.311; and 
 21.23     (3) (4) is adopted as part of the local government's 
 21.24  official controls. 
 21.25     (d) An agency that is invited to participate in the 
 21.26  development of the local plan, but declines to do so and fails 
 21.27  to participate or to provide written comments during the local 
 21.28  review process, waives the right during board review to submit 
 21.29  comments other than those concerning consistency of the plan 
 21.30  with laws and rules administered by that agency.  In determining 
 21.31  the merit of an agency comment, the board must consider the 
 21.32  involvement of the agency in the development of the local plan. 
 21.33     (d) (e) If the local government unit fails to apply the 
 21.34  rules, or fails to implement a local program under paragraph 
 21.35  (c), the government unit is subject to penalty as determined by 
 21.36  the board.  
 22.1      (f) A comprehensive wetland protection and management plan 
 22.2   may:  
 22.3      (1) according to a scientific methodology approved by the 
 22.4   board, classify wetlands based on an assessments of:  
 22.5      (i) wetland functions including:  floodwater retention, 
 22.6   nutrient assimilation, sediment entrapment, groundwater 
 22.7   recharge, low flow augmentation, aesthetics and recreation, 
 22.8   commercial uses, wildlife and fisheries habitat, and education; 
 22.9   and 
 22.10     (ii) the resulting public values; 
 22.11     (2) vary application of the sequencing standards of section 
 22.12  103G.222, paragraph (b), based on the classification; 
 22.13     (3) vary the replacement standards of section 103G.222, 
 22.14  paragraphs (f) and (g), for specific wetland impacts provided 
 22.15  there is no net loss of public values and biological diversity 
 22.16  within the area subject to the plan, and so long as in counties 
 22.17  and watersheds having less than 80 percent of their 
 22.18  presettlement wetland acreage, a minimum acreage requirement of 
 22.19  one acre of replaced wetland for each acre of drained or filled 
 22.20  wetland is met within the area subject to the plan; 
 22.21     (4) allow replacement credit in a county or watershed with 
 22.22  more than 80 percent of its presettlement wetlands for any 
 22.23  project that increases the public value of wetlands, including 
 22.24  activities on adjacent upland acres, based on the 
 22.25  classification; and 
 22.26     (5) for counties with greater than 80 percent of 
 22.27  presettlement wetlands remaining, expand the application of the 
 22.28  exemptions in section 103G.2241, subdivision 1, clause (4), to 
 22.29  also include nonagricultural land, provided there is no net loss 
 22.30  of wetland values, based on the classification.  
 22.31     (g) Upon approval of a comprehensive wetland protection and 
 22.32  management plan by the board, the local government unit shall 
 22.33  make replacement decisions based on the approved plan.  
 22.34     (h) The board shall approve a plan under this section if 
 22.35  the board determines that the plan provides for no net loss of 
 22.36  the public values of wetlands provided in section 103B.3355.  
 23.1      (i) In approving a plan, the board shall advise the local 
 23.2   government unit of those elements of the plan that are more 
 23.3   restrictive than state law and rules for purposes of section 
 23.4   103G.237, subdivision 5.  
 23.5      (j) If the board disapproves of the plan or any elements of 
 23.6   the plan, the board shall, in writing, notify the local 
 23.7   government of the plan deficiencies and what changes are 
 23.8   required for the board to approve the plan.  The board shall 
 23.9   include in the response to the local government the scientific 
 23.10  justification for the board's disapproval of the plan.  Upon 
 23.11  receipt of the board's decision to disapprove the plan, the 
 23.12  local government shall have 60 days to revise the plan and 
 23.13  resubmit the plan to the board for reconsideration.  
 23.14     (k) The local government, after the final decision by the 
 23.15  board to disapprove the plan, may request a hearing before the 
 23.16  board.  The board shall hold a hearing in the local government 
 23.17  within 60 days of the request for hearing.  After the hearing, 
 23.18  the board shall within 60 days, prepare a report of decision to 
 23.19  approve or disapprove the plan and in writing inform the local 
 23.20  government of the final decision of the board.  
 23.21     (l) If the board disapproves the plan the local government 
 23.22  may, within 30 days of receipt of final decision of the board, 
 23.23  appeal the board's decision to the district court.  
 23.24     (m) The plan becomes effective upon adoption of the plan 
 23.25  into the official controls of the local government.  
 23.26     (n) All other time frames relating to development of the 
 23.27  plan shall be consistent with the local water plan shall be 
 23.28  consistent with the local water plan process under sections 
 23.29  103B.231 and 103B.311. 
 23.30     Sec. 16.  Minnesota Statutes 1994, section 103G.2242, 
 23.31  subdivision 2, is amended to read: 
 23.32     Subd. 2.  [EVALUATION.] Questions concerning the public 
 23.33  value, location, size, or type of a wetland shall be submitted 
 23.34  to and determined by a technical evaluation panel after an 
 23.35  on-site inspection.  The technical evaluation panel shall be 
 23.36  composed of a technical professional employee of the board, a 
 24.1   technical professional employee of the local soil and water 
 24.2   conservation district or districts, and a technical professional 
 24.3   with expertise in water resources management appointed by the 
 24.4   local government unit.  The panel shall use the "Federal Manual 
 24.5   for Identifying and Delineating Jurisdictional Wetlands" 
 24.6   (January 1989) "United States Army Corps of Engineers Wetland 
 24.7   Delineation Manual" (January 1987).  The panel shall provide the 
 24.8   wetland determination to the local government unit that must 
 24.9   approve a replacement plan under this section, and may recommend 
 24.10  approval or denial of the plan.  The authority must consider and 
 24.11  include the decision of the technical evaluation panel in their 
 24.12  approval or denial of a plan. 
 24.13     Sec. 17.  Minnesota Statutes 1994, section 103G.2242, 
 24.14  subdivision 4, is amended to read: 
 24.15     Subd. 4.  [DECISION.] Upon receiving and considering all 
 24.16  required data, the local government unit approving a replacement 
 24.17  plan must act on all applications for plan approval within 60 
 24.18  days.  A local government unit may extend the 60-day period for 
 24.19  an additional 30 days by notifying the applicant in writing of 
 24.20  the delay, the reasons for the delay, and the expected date of 
 24.21  final action on the application.  If the local government unit 
 24.22  fails to act on an application within the 60-day period or any 
 24.23  extension period, the replacement plan shall be deemed approved. 
 24.24     Sec. 18.  Minnesota Statutes 1994, section 103G.2242, 
 24.25  subdivision 6, is amended to read: 
 24.26     Subd. 6.  [NOTICE OF APPLICATION.] (a) Except as provided 
 24.27  in paragraph (b), within ten days of receiving an application 
 24.28  for approval of a replacement plan under this section, a copy 
 24.29  summary of the application must be submitted to the board for 
 24.30  publication in the Environmental Quality Board Monitor and 
 24.31  separate copies of the complete application mailed to the 
 24.32  members of the technical evaluation panel, individual members of 
 24.33  the public who request a copy, the board of supervisors of the 
 24.34  soil and water conservation district, the managers of the 
 24.35  watershed district if one exists, the board of county 
 24.36  commissioners, and the commissioner of agriculture, and the 
 25.1   mayors of the cities within the area watershed.  At the same 
 25.2   time, the local government unit must give general notice to the 
 25.3   public in a general circulation newspaper within the area 
 25.4   affected natural resources. 
 25.5      (b) Within ten days of receiving an application for 
 25.6   approval of a replacement plan under this section for an 
 25.7   activity affecting less than 10,000 square feet of wetland, a 
 25.8   summary of the application must be submitted for publication in 
 25.9   the Environmental Quality Board Monitor and separate copies 
 25.10  mailed to the members of the technical evaluation panel, 
 25.11  individual members of the public who request a copy, and the 
 25.12  managers of the watershed district, if applicable.  At the same 
 25.13  time, the local government unit must give general notice to the 
 25.14  public in a general circulation newspaper within the area 
 25.15  affected commissioner of natural resources.  
 25.16     (c) For the purpose of this subdivision, "application" 
 25.17  includes a revised application for replacement plan approval and 
 25.18  an application for a revision to an approved replacement plan if:
 25.19     (1) the wetland area to be drained or filled under the 
 25.20  revised replacement plan is at least ten percent larger than the 
 25.21  area to be drained or filled under the original replacement 
 25.22  plan; or 
 25.23     (2) the wetland area to be drained or filled under the 
 25.24  revised replacement is located more than 500 feet from the area 
 25.25  to be drained or filled under the original replacement plan. 
 25.26     Sec. 19.  Minnesota Statutes 1994, section 103G.2242, 
 25.27  subdivision 7, is amended to read: 
 25.28     Subd. 7.  [NOTICE OF DECISION.] (a) Except as provided in 
 25.29  paragraph (b), at least 30 Within ten days prior to the 
 25.30  effective date of the approval or denial of a replacement plan 
 25.31  under this section, a copy summary of the approval or denial 
 25.32  must be submitted for publication in the Environmental Quality 
 25.33  Board Monitor and separate copies mailed to members of the 
 25.34  technical panel, the applicant, the board, individual members of 
 25.35  the public who request a copy, the board of supervisors of the 
 25.36  soil and water conservation district, the managers of the 
 26.1   watershed district, the board of county commissioners, if one 
 26.2   exists, and the commissioner of agriculture, and the mayors of 
 26.3   the cities within the area watershed natural resources.  Notice 
 26.4   in the Environmental Quality Board Monitor is not required for 
 26.5   projects involving the draining or filling of less than 10,000 
 26.6   square feet of wetlands. 
 26.7      (b) Within ten days of the decision approving or denying a 
 26.8   replacement plan under this section for an activity affecting 
 26.9   less than 10,000 square feet of wetland, a summary of the 
 26.10  approval or denial must be submitted for publication in the 
 26.11  Environmental Quality Board Monitor and separate copies mailed 
 26.12  to the applicant, individual members of the public who request a 
 26.13  copy, the members of the technical evaluation panel, and the 
 26.14  managers of the watershed district, if applicable.  At the same 
 26.15  time, the local government unit must give general notice to the 
 26.16  public in a general circulation newspaper within the area 
 26.17  affected. 
 26.18     Sec. 20.  Minnesota Statutes 1994, section 103G.2242, 
 26.19  subdivision 9, is amended to read: 
 26.20     Subd. 9.  [APPEAL.] Appeal of the a replacement plan, 
 26.21  exemption, or no-loss decision may be obtained by mailing 
 26.22  a notice of appeal petition and payment of a filing fee of $200 
 26.23  to the board within 30 15 days after the postmarked date of the 
 26.24  mailing specified in subdivision 7.  If appeal is not sought 
 26.25  within 30 days, the decision becomes final.  The local 
 26.26  government unit may require the petitioner to post a bond in an 
 26.27  amount not to exceed $500.  Appeal may be made by the wetland 
 26.28  owner, by any of those to whom notice is required to be mailed 
 26.29  under subdivision 7, or by 100 residents of the county in which 
 26.30  a majority of the wetland is located.  Within 30 days after 
 26.31  receiving a petition, the board shall decide whether to grant 
 26.32  the petition and hear the appeal.  The board shall grant the 
 26.33  petition unless the board finds that the appeal is meritless, 
 26.34  trivial, or brought solely for the purposes of delay; that the 
 26.35  petitioner has not exhausted all local administrative remedies; 
 26.36  or that the petitioner has not posted a bond if required by the 
 27.1   local government unit.  In determining whether to grant the 
 27.2   appeal, the board shall also consider the size of the wetland, 
 27.3   other factors in controversy, any patterns of similar acts by 
 27.4   the local government unit or petitioner, and the consequences of 
 27.5   the delay resulting from the appeal.  If the petition is 
 27.6   accepted, the filing fee shall be retained by the board to 
 27.7   defray administrative costs.  If the appeal is denied, the 
 27.8   filing fee must be returned to the petitioner.  All appeals must 
 27.9   be heard by the committee for dispute resolution of the board, 
 27.10  and a decision made within 60 days of the appeal.  The decision 
 27.11  must be served by mail on the parties to the appeal, and is not 
 27.12  subject to the provisions of chapter 14.  The A decision whether 
 27.13  to grant a petition for appeal and a decision on the merits of 
 27.14  an appeal must be considered the decision of an agency in a 
 27.15  contested case for purposes of judicial review under sections 
 27.16  14.63 to 14.69. 
 27.17     Sec. 21.  Minnesota Statutes 1994, section 103G.2242, 
 27.18  subdivision 12, is amended to read: 
 27.19     Subd. 12.  [REPLACEMENT CREDITS.] (a) No public or private 
 27.20  wetland restoration, enhancement, or construction may be allowed 
 27.21  for replacement unless specifically designated for replacement 
 27.22  and paid for by the individual or organization performing the 
 27.23  wetland restoration, enhancement, or construction, and is 
 27.24  completed prior to any draining or filling of the wetland. 
 27.25     This subdivision (b) Paragraph (a) does not apply to a 
 27.26  wetland whose owner has paid back with interest the individual 
 27.27  or organization restoring, enhancing, or constructing the 
 27.28  wetland. 
 27.29     (c) Notwithstanding section 103G.222, paragraph (i), the 
 27.30  following actions are eligible for replacement credit as 
 27.31  determined by the local government unit, including enrollment in 
 27.32  a statewide wetlands bank: 
 27.33     (1) reestablishment of permanent vegetative cover on a 
 27.34  wetland that was planted with annually seeded crops, was in a 
 27.35  crop rotation seeding of pasture grasses or legumes, or was 
 27.36  required to be set aside to receive price supports or other 
 28.1   payments under United States Code, title 7, sections 1421 to 
 28.2   1469, in six of the last ten years prior to January 1, 1991; 
 28.3   Replacement credit may not exceed 50 percent of the total 
 28.4   wetland area vegetatively restored; 
 28.5      (2) establishment of buffer areas of permanent vegetative 
 28.6   cover on upland adjacent to replacement wetlands.  The upland 
 28.7   buffer must be established at the time of wetland mitigation and 
 28.8   replacement credit for such buffers cannot exceed 75 percent of 
 28.9   the mitigated wetland area and can only be used for replacement 
 28.10  above a 1 to 1 ratio; 
 28.11     (3) restoration of wetlands for conservation purposes under 
 28.12  terminated easements or contracts.  Up to 75 percent of the 
 28.13  restored wetland area is eligible for replacement credit.  
 28.14  Adjacent upland buffer areas reestablished to permanent 
 28.15  vegetative cover are eligible for replacement credit above a 1 
 28.16  to 1 ratio in an amount not to exceed 25 percent of the restored 
 28.17  wetland area; and 
 28.18     (4) construction of water quality treatment ponds to 
 28.19  pretreat storm water runoff prior to discharge to wetlands, 
 28.20  public waters, or other water bodies.  The water quality 
 28.21  treatment ponds must be associated with an ongoing or proposed 
 28.22  project that will impact a wetland.  Replacement credit for the 
 28.23  treatment ponds may not exceed 75 percent of the treatment pond 
 28.24  area and may only be used for replacement above a 1 to 1 ratio. 
 28.25     Sec. 22.  Minnesota Statutes 1994, section 103G.237, 
 28.26  subdivision 4, is amended to read: 
 28.27     Subd. 4.  [COMPENSATION.] (a) The board shall award 
 28.28  compensation in an amount equal to the greater of: 
 28.29     (1) 50 percent of the value of the wetland, calculated by 
 28.30  multiplying the acreage of the wetland by the greater of: 
 28.31     (1) (i) the average equalized estimated market value of 
 28.32  agricultural property in the township as established by the 
 28.33  commissioner of revenue at the time application for compensation 
 28.34  is made; or 
 28.35     (2) (ii) the assessed value per acre of the parcel 
 28.36  containing the wetland, based on the assessed value of the 
 29.1   parcel as stated on the most recent tax statement; or 
 29.2      (2) $200 per acre of wetland subject to the replacement 
 29.3   plan, increased or decreased by the percentage change of the 
 29.4   assessed valuation of land in the township where the wetland is 
 29.5   located from the 1995 valuation. 
 29.6      (b) A person who receives compensation under paragraph (a) 
 29.7   shall convey to the board a permanent conservation easement as 
 29.8   described in section 103F.515, subdivision 4.  An easement 
 29.9   conveyed under this paragraph is subject to correction and 
 29.10  enforcement under section 103F.515, subdivisions 8 and 9. 
 29.11     Sec. 23.  Minnesota Statutes 1994, section 103G.237, is 
 29.12  amended by adding a subdivision to read: 
 29.13     Subd. 5.  [COMPENSATION CLAIMS AGAINST LOCAL GOVERNMENT 
 29.14  UNITS.] (a) At the request of a local government unit against 
 29.15  which a compensation action is brought based at least in part on 
 29.16  the local government unit's application of state wetland 
 29.17  conservation law and rules, the state, through the attorney 
 29.18  general, shall intervene in the action on behalf of the local 
 29.19  government unit and the state shall thereafter be considered a 
 29.20  defendant in the action with respect to the local government 
 29.21  unit's application of state wetland conservation law and rules.  
 29.22  A local government unit making a request under this paragraph 
 29.23  shall provide the attorney general with a copy of the complaint 
 29.24  as soon as possible after being served.  If requested by the 
 29.25  attorney general, the court shall grant additional time to file 
 29.26  an answer equal to the time between service of the complaint on 
 29.27  the local government unit and receipt of the complaint by the 
 29.28  attorney general. 
 29.29     (b) The state is liable for costs, damages, fees, and 
 29.30  compensation awarded in the action based on the local 
 29.31  government's application of standards that are required by state 
 29.32  wetland conservation law and rules, as determined by the court.  
 29.33  The local government unit is liable for costs, damages, fees, 
 29.34  and compensation awarded in the action based on local standards 
 29.35  that are more restrictive than state wetland conservation law 
 29.36  and rules or due to bad faith or negligence by the local 
 30.1   government unit in the application of state wetland conservation 
 30.2   law and rules. 
 30.3      (c) For the purposes of this subdivision, "compensation 
 30.4   action" means an action in which the plaintiff seeks 
 30.5   compensation for a taking of private property under the state or 
 30.6   federal constitution. 
 30.7      (d) For purposes of this subdivision, "state wetland 
 30.8   conservation law and rules" means this section, section 
 30.9   103G.222, 103G.2241, 103G.2242, or 103G.2372, or rules adopted 
 30.10  by the board to implement these sections. 
 30.11     Sec. 24.  Minnesota Statutes 1994, section 103G.2373, is 
 30.12  amended to read: 
 30.13     103G.2373 [ANNUAL WETLANDS REPORT.] 
 30.14     By January March 1 of each year, the commissioner of 
 30.15  natural resources and the board of water and soil resources 
 30.16  shall jointly report to the committees of the legislature with 
 30.17  jurisdiction over matters relating to agriculture, the 
 30.18  environment, and natural resources on: 
 30.19     (1) the status of implementation of state laws and programs 
 30.20  relating to wetlands; 
 30.21     (2) the quantity, quality, acreage, types, and public value 
 30.22  of wetlands in the state; and 
 30.23     (3) changes in the items in clause (2). 
 30.24     Sec. 25.  Minnesota Statutes 1994, section 115.03, is 
 30.25  amended by adding a subdivision to read: 
 30.26     Subd. 4a.  [SECTION 401 CERTIFICATIONS.] (a) The following 
 30.27  definitions apply to this subdivision: 
 30.28     (1) "section 401 certification" means a water quality 
 30.29  certification required under section 401 of the federal Clean 
 30.30  Water Act, United States Code, title 33, section 1341; and 
 30.31     (2) "nationwide permit" means a nationwide general permit 
 30.32  issued by the United States Army Corps of Engineers and listed 
 30.33  in Code of Federal Regulations, title 40, part 330, appendix A. 
 30.34     (b) The agency is responsible for providing section 401 
 30.35  certifications for nationwide permits. 
 30.36     (c) Before making a final decision on a section 401 
 31.1   certification for regional conditions on a nationwide permit, 
 31.2   the agency shall hold at least one public meeting outside the 
 31.3   seven-county metropolitan area. 
 31.4      (d) In addition to other notices required by law, the 
 31.5   agency shall provide written notice of a meeting at which the 
 31.6   agency will be considering a section 401 certification for 
 31.7   regional conditions on a nationwide permit at least 21 days 
 31.8   before the date of the meeting to the members of the senate and 
 31.9   house of representatives environment and natural resources 
 31.10  committees, the senate agriculture and rural development 
 31.11  committee, and the house of representatives agriculture 
 31.12  committee. 
 31.13     Sec. 26.  [STUDY OF WETLAND BANKING ALTERNATIVES; REPORT.] 
 31.14     The wetland heritage advisory committee, in conjunction 
 31.15  with the board, and the commissioner of natural resources, shall 
 31.16  investigate alternative procedures and policies for improving 
 31.17  the current wetland banking system in the state.  The study 
 31.18  shall address ecological, hydrological, and economic aspects of 
 31.19  wetland banking.  The study shall address any relevant 
 31.20  information developed by the state comprehensive wetlands 
 31.21  planning project.  The study and any recommendations must be 
 31.22  reported to the appropriate policy committees of the legislature 
 31.23  by March 1, 1997. 
 31.24     Sec. 27.  [RULES.] 
 31.25     The board, in consultation with the commissioner of natural 
 31.26  resources, shall adopt rules that amend the rules previously 
 31.27  adopted under Minnesota Statutes, sections 103G.2242, 
 31.28  subdivision 1, and 103B.3355. 
 31.29     Sec. 28.  [REPEALER.] 
 31.30     Minnesota Statutes 1994, section 103G.2242, subdivision 13, 
 31.31  is repealed. 
 31.32     Sec. 29.  [EFFECTIVE DATE.] 
 31.33     This act is effective on the day following final enactment.