1.1 	A bill for an act
1.2 	relating to clean water; abolishing the privatization of water or wastewater 
1.3 	treatment law;amending Minnesota Statutes 2012, sections 116.18, subdivision 
1.4 	3b; 469.153, subdivision 2; repealing Minnesota Statutes 2012, sections 13.202, 
1.5 	subdivision 10; 115.58, subdivision 2; 272.02, subdivision 63; 471A.01; 
1.6 	471A.02, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16; 471A.03; 
1.7 	471A.05; 471A.06; 471A.08; 471A.09; 471A.10; 471A.11; 471A.12.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2012, section 116.18, subdivision 3b, is amended to read:
1.10 		Subd. 3b.Capital cost component grant. (a) The definitions of "capital cost 
1.11 	component," "capital cost component grant," "service fee," "service contract," and "private 
1.12 	vendor" in Minnesota Statutes 2012, section 471A.02, apply to this subdivision.
1.13 	(b) Beginning in fiscal year 1989, up to $1,500,000 of the money to be awarded as 
1.14 	grants under subdivision 3a in any single fiscal year may be set aside for the award of 
1.15 	capital cost component grants to municipalities on the municipal needs list for part of the 
1.16 	capital cost component of the service fee under a service contract for a term of at least 
1.17 	20 years with a private vendor for the purpose of constructing and operating wastewater 
1.18 	treatment facilities.
1.19 	(c) The amount granted to a municipality shall be 50 percent of the average total 
1.20 	eligible costs of municipalities of similar size recently awarded state and federal grants 
1.21 	under the provisions of subdivisions 2a and 3a and the Federal Water Pollution Control 
1.22 	Act, United States Code, title 33, sections 1281 to 1299. Federal and state eligibility 
1.23 	requirements for determining the amount of grant dollars to be awarded to a municipality 
1.24 	are not applicable to municipalities awarded capital cost component grants. Federal and 
2.1 	state eligibility requirements for determining which cities qualify for state and federal 
2.2 	grants are applicable, except as provided in this subdivision.
2.3 	(d) Except as provided in this subdivision, municipalities receiving capital cost 
2.4 	component grants shall not be required to comply with federal and state regulations 
2.5 	regarding facilities planning and procurement contained in sections 116.16 to 116.18, 
2.6 	except those necessary to issue a national pollutant discharge elimination system permit or 
2.7 	state disposal system permit and those necessary to assure that the proposed facilities are 
2.8 	reasonably capable of meeting the conditions of the permit over 20 years. The municipality 
2.9 	and the private vendor shall be parties to the permit. Municipalities receiving capital cost 
2.10 	component grants may also be exempted by rules of the agency from other state and federal 
2.11 	regulations relating to the award of state and federal grants for wastewater treatment 
2.12 	facilities, except those necessary to protect the state from fraud or misuse of state funds.
2.13 	(e) Funds shall be distributed from the set-aside to municipalities that apply for the 
2.14 	funds in accordance with these provisions in the order of their ranking on the municipal 
2.15 	needs list.
2.16 	(f) The authority shall award capital cost component grants to municipalities selected 
2.17 	by the state pollution control commissioner upon certification by the state pollution control 
2.18 	commissioner that the municipalities' projects and applications have been reviewed and 
2.19 	approved in accordance with this subdivision and agency rules adopted under paragraph (g).
2.20 	(g) The agency shall adopt permanent rules to provide for the administration of 
2.21 	grants awarded under this subdivision.
2.22 	(h) The commissioner of employment and economic development may adopt 
2.23 	rules containing procedures for administration of the authority's duties as set forth in 
2.24 	paragraph (f).

2.25 	Sec. 2. Minnesota Statutes 2012, section 469.153, subdivision 2, is amended to read:
2.26 		Subd. 2.Project. (a) "Project" means (1) any properties, real or personal, used 
2.27 	or useful in connection with a revenue producing enterprise, or any combination of 
2.28 	two or more such enterprises engaged or to be engaged in generating, transmitting, or 
2.29 	distributing electricity, assembling, fabricating, manufacturing, mixing, processing, 
2.30 	storing, warehousing, or distributing any products of agriculture, forestry, mining, or 
2.31 	manufacture, or in research and development activity in this field, or in the manufacturing, 
2.32 	creation, or production of intangible property, including any patent, copyright, formula, 
2.33 	process, design, know-how, format, or other similar item; (2) any properties, real or 
2.34 	personal, used or useful in the abatement or control of noise, air, or water pollution, or in 
2.35 	the disposal of solid wastes, in connection with a revenue producing enterprise, or any 
3.1 	combination of two or more such enterprises engaged or to be engaged in any business 
3.2 	or industry; (3) any properties, real or personal, used or useful in connection with the 
3.3 	business of telephonic communications, conducted or to be conducted by a telephone 
3.4 	company, including toll lines, poles, cables, switching, and other electronic equipment 
3.5 	and administrative, data processing, garage, and research and development facilities; 
3.6 	(4) any properties, real or personal, used or useful in connection with a district heating 
3.7 	system, consisting of the use of one or more energy conversion facilities to produce hot 
3.8 	water or steam for distribution to homes and businesses, including cogeneration facilities, 
3.9 	distribution lines, service facilities, and retrofit facilities for modifying the user's heating 
3.10 	or water system to use the heat energy converted from the steam or hot water.
3.11 	(b) "Project" also includes any properties, real or personal, used or useful in 
3.12 	connection with a revenue producing enterprise, or any combination of two or more 
3.13 	such enterprises engaged in any business.
3.14 	(c) "Project" also includes any properties, real or personal, used or useful for the 
3.15 	promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts, 
3.16 	recreational facilities of the type that may be acquired under section 471.191, and related 
3.17 	facilities.
3.18 	(d) "Project" also includes any properties, real or personal, used or useful in 
3.19 	connection with a revenue producing enterprise, whether or not operated for profit, 
3.20 	engaged in providing health care services, including hospitals, nursing homes, and related 
3.21 	medical facilities.
3.22 	(e) "Project" does not include any property to be sold or to be affixed to or consumed 
3.23 	in the production of property for sale, and does not include any housing facility to be 
3.24 	rented or used as a permanent residence.
3.25 	(f) "Project" also means the activities of any revenue producing enterprise involving 
3.26 	the construction, fabrication, sale, or leasing of equipment or products to be used in 
3.27 	gathering, processing, generating, transmitting, or distributing solar, wind, geothermal, 
3.28 	biomass, agricultural or forestry energy crops, or other alternative energy sources for 
3.29 	use by any person or any residential, commercial, industrial, or governmental entity in 
3.30 	heating, cooling, or otherwise providing energy for a facility owned or operated by that 
3.31 	person or entity.
3.32 	(g) "Project" also includes any properties, real or personal, used or useful in 
3.33 	connection with a county jail, county regional jail, community corrections facilities 
3.34 	authorized by chapter 401, or other law enforcement facilities, the plans for which are 
3.35 	approved by the commissioner of corrections; provided that the provisions of section 
3.36 	469.155, subdivisions 7 and 13, do not apply to those projects.
4.1 	(h) "Project" also includes any real properties used or useful in furtherance of the 
4.2 	purpose and policy of section 469.141.
4.3 	(i) "Project" also includes related facilities as defined by Minnesota Statutes 2012, 
4.4 	section 471A.02, subdivision 11.
4.5 	(j) "Project" also includes an undertaking to purchase the obligations of local 
4.6 	governments located in whole or in part within the boundaries of the municipality that are 
4.7 	issued or to be issued for public purposes.
4.8 	(k) "Project" also includes any properties designated as a qualified green building 
4.9 	and sustainable design project under section 469.1655.

4.10 	Sec. 3.  REPEALER.
 4.11 	Minnesota Statutes 2012, sections 13.202, subdivision 10; 115.58, subdivision 2; 
4.12 	272.02, subdivision 63; 471A.01; 471A.02, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 
4.13 	13, 14, and 16; 471A.03; 471A.05; 471A.06; 471A.08; 471A.09; 471A.10; 471A.11; 
4.14 	and 471A.12, are repealed.