1.1                          A bill for an act 
  1.2             relating to water; wastewater treatment; expanding the 
  1.3             wastewater infrastructure funding program to include 
  1.4             basic grants to municipalities; amending Minnesota 
  1.5             Statutes 1994, section 446A.071, subdivisions 1, 5, 
  1.6             and by adding subdivisions. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 446A.071, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [ESTABLISHMENT OF THE PROGRAM.] (a) The 
  1.11  authority shall establish the wastewater infrastructure funding 
  1.12  program to provide basic assistance grants to cities under 
  1.13  subdivisions 1a to 1c, and supplemental assistance, as provided 
  1.14  in rules of the authority, to municipalities that receive loans 
  1.15  or other assistance from the water pollution control revolving 
  1.16  fund under section 446A.07 for wastewater treatment projects 
  1.17  excluding storm water projects. 
  1.18     (b) The authority may secure funds for the wastewater 
  1.19  infrastructure funding program through state appropriations; any 
  1.20  source identified in section 446A.04 which may be designated by 
  1.21  the authority for the purposes of this section; and any federal 
  1.22  funding appropriated by Congress that may be used for the 
  1.23  purposes of this section. 
  1.24     (c) The authority may set aside up to ten percent of the 
  1.25  money appropriated to the wastewater infrastructure funding 
  1.26  program for wastewater projects that are necessary to 
  2.1   accommodate economic development projects. 
  2.2      (d) The authority may set aside up to 20 percent of the 
  2.3   money appropriated to the wastewater infrastructure funding 
  2.4   program for supplemental assistance under subdivisions 2 to 4. 
  2.5      Sec. 2.  Minnesota Statutes 1994, section 446A.071, is 
  2.6   amended by adding a subdivision to read: 
  2.7      Subd. 1a.  [BASIC ASSISTANCE GRANTS.] (a) The authority 
  2.8   shall provide basic assistance in the form of direct grants 
  2.9   under this section to home rule charter and statutory cities 
  2.10  that are located outside the metropolitan area for projects to 
  2.11  construct or upgrade wastewater treatment facilities.  Costs for 
  2.12  collection system expansion or improvements, except for the 
  2.13  separation of combined sanitary and storm sewer systems in order 
  2.14  to eliminate combined sewer overflow and projects ordered by the 
  2.15  agency to correct inflow and infiltration problems, are not 
  2.16  eligible for basic assistance grant funding.  Basic assistance 
  2.17  grants shall be made available to eligible projects even if loan 
  2.18  funding for those projects is also available. 
  2.19     (b) For projects eligible for a basic assistance grant, the 
  2.20  certification of essential project components and costs by the 
  2.21  commissioner of the agency under section 116.182, subdivision 4, 
  2.22  shall include an allocation of total project costs among:  (1) 
  2.23  all improvements required either directly or indirectly by the 
  2.24  Environmental Protection Agency; and (2) other project costs. 
  2.25     (c) Basic assistance grants shall be equal to 50 percent of 
  2.26  the total project costs. 
  2.27     Sec. 3.  Minnesota Statutes 1994, section 446A.071, is 
  2.28  amended by adding a subdivision to read: 
  2.29     Subd. 1b.  [BASIC ASSISTANCE GRANT PRIORITIES.] The agency 
  2.30  shall prepare a priority list of eligible projects and related 
  2.31  project costs prioritized based on the agency rules for 
  2.32  prioritizing projects on the intended use plan under section 
  2.33  446A.07, subdivisions 4 and 11, or based on other agency rules 
  2.34  that reflect state environmental priorities.  On or before 
  2.35  January 1 of each year, the agency shall submit this priority 
  2.36  list, including estimated project costs, to the governor, the 
  3.1   chairs of the house and senate environment and natural resources 
  3.2   committees, and the chairs of the house ways and means committee 
  3.3   and the senate finance committee.  The governor shall include in 
  3.4   the next budget or capital bonding recommendations the amount of 
  3.5   funding and projects recommended for funding, if any. 
  3.6      Sec. 4.  Minnesota Statutes 1994, section 446A.071, is 
  3.7   amended by adding a subdivision to read: 
  3.8      Subd. 1c.  [ENFORCEMENT LIMITATION.] Notwithstanding other 
  3.9   law, the agency may not require construction of any project 
  3.10  eligible for a basic assistance grant, levy fines, or bring any 
  3.11  other enforcement action against a city related to the 
  3.12  improvement, until the city has had the opportunity to apply for 
  3.13  a basic assistance grant and unless sufficient funding is 
  3.14  available and a 50 percent basic assistance grant for that 
  3.15  project is approved. 
  3.16     Sec. 5.  Minnesota Statutes 1994, section 446A.071, 
  3.17  subdivision 5, is amended to read: 
  3.18     Subd. 5.  [APPLICATIONS.] Applications for basic assistance 
  3.19  grants and supplemental assistance must be made to the authority 
  3.20  on forms prescribed by the authority and must include 
  3.21  information identified in the rules of the authority and the 
  3.22  agency.  The authority shall forward an application to the 
  3.23  commissioner of the pollution control agency within ten days of 
  3.24  receipt.  The commissioner of the pollution control agency shall 
  3.25  review the projects and applications to determine if they meet 
  3.26  the criteria set forth in section 116.182 and the agency rules 
  3.27  for the program.  The commissioner of the pollution control 
  3.28  agency shall certify approved applications to the authority 
  3.29  under section 116.182.