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 AND FINDINGS.
1.14 		Subdivision 1.Purpose. The purpose of the Clean Water
1.15 	Legacy Act is to protect, restore, and preserve the quality of
1.16 	Minnesota's surface waters by providing authority, direction,
1.17 	and resources to achieve and maintain water quality standards
1.18 	for surface waters as required by section 303(d) of the federal
1.19 	Clean Water Act, United States Code, title 42, section 1313(d),
1.20 	and applicable federal regulations.
1.21 		Subd. 2.Findings. The legislature finds that:
1.22 	(1) there is a close link between protecting, restoring,
1.23 	and preserving the quality of Minnesota's surface waters and the
1.24 	ability to develop the state's economy, enhance its quality of
1.25 	life, and protect its human and natural resources;
1.26 	(2) achieving the state's water quality goals will require
1.27 	long-term commitment and cooperation by all state and local
2.1 	agencies, and other public and private organizations and
2.2 	individuals, with responsibility and authority for water
2.3 	management, planning, and protection; and 
2.4 	(3) all persons and organizations whose activities affect
2.5 	the quality of waters, including point and nonpoint sources of
2.6 	pollution, have a responsibility to participate in and support
2.7 	efforts to achieve the state's water quality goals.

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

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

7.16 	Sec. 5. [114D.25] ADMINISTRATION; POLLUTION CONTROL
7.17 	AGENCY.
7.18 		Subdivision 1.General duties and authorities. The
7.19 	Pollution Control Agency, in accordance with federal TMDL
7.20 	requirements, shall:  identify impaired waters and propose a
7.21 	list of the waters for review and approval by the United States
7.22 	Environmental Protection Agency; develop and approve TMDL's for
7.23 	listed impaired waters and submit the approved TMDL's to the
7.24 	United State Environmental Protection Agency for final approval;
7.25 	and propose to delist waters from the Environmental Protection
7.26 	Agency impaired waters list.
7.27 		Subd. 2.Administrative procedures for tmdl
7.28 	approval. The approval of a TMDL by the Pollution Control
7.29 	Agency must be considered a final decision of the agency, and is
7.30 	subject to the contested case procedures of sections 14.57 to
7.31 	14.62, and to judicial review under sections 14.63 to 14.69.  A
7.32 	TMDL is not subject to the rulemaking requirements of chapter
7.33 	14, including section 14.386.
7.34 		Subd. 3.Third-party tmdl development. The Pollution
7.35 	Control Agency may enter agreements with any qualified public or
7.36 	private entity setting forth the terms and conditions under
8.1 	which that entity is authorized to develop a third-party TMDL.
8.2 	In determining whether an entity is qualified to develop a
8.3 	third-party TMDL, the agency shall consider the technical and
8.4 	administrative qualifications of the entity and any potential
8.5 	conflict of interest of the entity with respect to the
8.6 	development of the third-party TMDL.  A third-party TMDL is
8.7 	subject to modification and approval by the Pollution Control
8.8 	Agency, and must be approved by the Pollution Control Agency
8.9 	before it is submitted to the United States Environmental
8.10 	Protection Agency.  The Pollution Control Agency shall consider
8.11 	authorizing the development of third-party TMDL's consistent
8.12 	with the goals, policies, and priorities determined under
8.13 	section 116.384.

8.14 	Sec. 6. [114D.30] CLEAN WATER COUNCIL.
8.15 		Subdivision 1.Creation; duties. A Clean Water Council
8.16 	is created to advise on the administration and implementation of
8.17 	this chapter, and foster coordination and cooperation as
8.18 	described in section 114D.20, subdivision 1.  The council may
8.19 	also advise on the development of appropriate processes for
8.20 	expert scientific review as described in section 114D.35,
8.21 	subdivision 2.  The Pollution Control Agency shall provide
8.22 	administrative support for the council with the support of other
8.23 	member agencies.  The members of the council shall elect a chair
8.24 	from the nonagency members of the council.
8.25 		Subd. 2.Membership; appointment. The commissioners of
8.26 	natural resources, agriculture, and the Pollution Control
8.27 	Agency, and the executive director of the Board of Water and
8.28 	Soil Resources are the appointing authorities for the council.
8.29 	Each appointing authority shall appoint one person from their
8.30 	respective agency to serve as a member of the council.  The
8.31 	appointing authorities, acting jointly, shall appoint 13
8.32 	additional nonagency members of the council as follows:
8.33 	(1) two members representing statewide farm organizations;
8.34 	(2) two members representing business organizations;
8.35 	(3) two members representing environmental organizations;
8.36 	(4) one member representing soil and water conservation
9.1 	districts;
9.2 	(5) one member representing watershed districts;
9.3 	(6) one member representing organizations focused on
9.4 	improvement of Minnesota lakes or streams;
9.5 	(7) one member representing an organization of county
9.6 	governments;
9.7 	(8) two members representing organizations of city
9.8 	governments; and 
9.9 	(9) one member representing the Metropolitan Council
9.10 	established under section 473.123.
9.11 		Subd. 3.Terms; compensation; removal. The initial terms
9.12 	of members representing state agencies and the Metropolitan
9.13 	Council expire on the first Monday in January, 2007.
9.14 	Thereafter, the terms of members representing the state agencies
9.15 	and the Metropolitan Council are four years and are coterminous
9.16 	with the governor.  The terms of other members of the council
9.17 	shall be as provided in section 15.059, subdivision 2.  Members
9.18 	may serve until their successors are appointed and qualify.
9.19 	Compensation and removal of council members is as provided in
9.20 	section 15.059, subdivisions 3 and 4.  A vacancy on the council
9.21 	may be filled by the appointing authority provided in
9.22 	subdivision 1 for the remainder of the unexpired term.
9.23 		Subd. 4.Implementation plan. The Clean Water Council
9.24 	shall prepare a plan for implementation of this chapter.  The
9.25 	plan shall address general procedures and timeframes for
9.26 	implementing this chapter, and shall include a more specific
9.27 	implementation work plan for the next fiscal biennium and a
9.28 	framework for setting priorities to address impaired waters
9.29 	consistent with section 114D.45, subdivisions 2 to 7.  The
9.30 	council shall issue the first implementation plan under this
9.31 	subdivision by December 1, 2005, and shall issue a revised work
9.32 	plan by December 1 of each even-numbered year thereafter.
9.33 		Subd. 5.Recommendations on appropriation of funds. The
9.34 	Clean Water Council shall recommend to the governor the manner
9.35 	in which money from the clean water legacy account should be
9.36 	appropriated for the purposes identified in section 114D.45,
10.1 	subdivision 3.  The council's recommendations must be consistent
10.2 	with the purposes, policies, goals, and priorities in sections
10.3 	114D.05 to 114D.35, and shall allocate adequate support and
10.4 	resources to identify impaired waters, develop TMDL's, implement
10.5 	restoration of impaired waters, and provide assistance and
10.6 	incentives to prevent waters from becoming impaired and improve
10.7 	the quality of waters which are listed as impaired but have no
10.8 	approved TMDL.
10.9 		Subd. 6.Biennial report to legislature. By December 1
10.10 	of each even-numbered year, the council shall submit a report to
10.11 	the legislature on the activities for which money from the clean
10.12 	water legacy account has been or will be spent for the current
10.13 	biennium, and the activities for which money from the account is
10.14 	recommended to be spent in the next biennium.  The report due on
10.15 	December 1, 2014, must include an evaluation of the progress
10.16 	made through June 30, 2014, in implementing this chapter, the
10.17 	need for funding of future implementation of those sections, and
10.18 	recommendations for the sources of such funding.

10.19 	Sec. 7. [114D.35] PUBLIC AND STAKEHOLDER PARTICIPATION;
10.20 	SCIENTIFIC REVIEW; EDUCATION.
10.21 		Subdivision 1.Public and stakeholder participation.
 10.22 	Public agencies involved in the implementation of this chapter
10.23 	shall encourage participation by the public and stakeholders,
10.24 	including local citizens, land owners and managers, and public
10.25 	and private organizations, in the identification of impaired
10.26 	waters, in developing TMDL's, and in planning and implementing
10.27 	restoration of impaired waters.  In particular, the Pollution
10.28 	Control Agency shall make reasonable efforts to provide timely
10.29 	information to the public and to stakeholders about impaired
10.30 	waters that have been identified by the agency.  The agency
10.31 	shall seek broad and early public and stakeholder participation
10.32 	in scoping the activities necessary to develop a TMDL, including
10.33 	the scientific models, methods, and approaches to be used in
10.34 	TMDL development, and to implement restoration pursuant to
10.35 	section 114D.15, subdivision 7.
10.36 		Subd. 2.Expert scientific advice. The Clean Water
11.1 	Council and public agencies shall make use of available
11.2 	expertise from educational, research, and technical
11.3 	organizations, including the University of Minnesota and other
11.4 	higher education institutions, to provide appropriate
11.5 	independent expert advice on models, methods, and approaches
11.6 	used in identifying impaired waters, developing TMDL's, and
11.7 	implementing prevention and restoration.
11.8 		Subd. 3.Education. The Clean Water Council shall
11.9 	develop strategies for informing, educating, and encouraging the
11.10 	participation of citizens, stakeholders, and others regarding
11.11 	the identification of impaired waters, development of TMDL's,
11.12 	and development and implementation of restoration for impaired
11.13 	waters.  Public agencies shall be responsible for implementing
11.14 	the strategies.

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

16.27 	Sec. 9. [114D.45] CLEAN WATER LEGACY ACCOUNT.
16.28 		Subdivision 1.Creation. The clean water legacy account
16.29 	is created as an account in the environmental fund.  Money in
16.30 	the account must be made available for the implementation of
16.31 	this chapter and sections 446A.073 and 446A.074, without
16.32 	supplanting or taking the place of any other funds which are
16.33 	currently available or may become available from any other
16.34 	source, whether federal, state, local, or private, for
16.35 	implementation of those sections.
16.36 		Subd. 2.Sources of revenue. The following revenues must
17.1 	be deposited in the clean water legacy account:
17.2 	(1) the revenue from the clean water fees collected under
17.3 	section 114D.40; and 
17.4 	(2) interest accrued on the account.
17.5 		Subd. 3.Uses of account. Subject to appropriation by
17.6 	the legislature, the clean water legacy account may be used for
17.7 	the following purposes:
17.8 	(1) to provide grants, loans, and technical assistance to
17.9 	public agencies and others who are participating in the process
17.10 	of identifying impaired waters, developing TMDL's, implementing
17.11 	restoration plans for impaired waters, and monitoring the
17.12 	effectiveness of restoration;
17.13 	(2) to support measures to prevent waters from becoming
17.14 	impaired and to improve the quality of waters that are listed as
17.15 	impaired but have no approved TMDL addressing the impairment;
17.16 	(3) to provide grants and loans for wastewater and
17.17 	stormwater treatment projects through the Public Facilities
17.18 	Authority;
17.19 	(4) to support the efforts of public agencies associated
17.20 	with individual sewage treatment systems and financial
17.21 	assistance for upgrading and replacing the systems; and 
17.22 	(5) to provide funds to state agencies to carry out their
17.23 	responsibilities under this chapter.

17.24 	Sec. 10. [446A.073] CLEAN WATER LEGACY PHOSPHORUS
17.25 	REDUCTION GRANTS.
17.26 		Subdivision 1.Creation of fund. The authority shall
17.27 	establish a clean water legacy capital improvement fund and
17.28 	shall make grants from the fund as provided in this section.
17.29 		Subd. 2.Grants. The authority shall award grants from
17.30 	the clean water legacy capital improvement fund to governmental
17.31 	units for the capital costs of wastewater treatment facility
17.32 	projects or a portion thereof that will reduce the discharge of
17.33 	total phosphorus from the facility to one milligram per liter or
17.34 	less.  A project is eligible for a grant if it meets the
17.35 	following requirements:
17.36 	(1) the applicable phosphorus discharge limit is
18.1 	incorporated in a permit issued by the agency for the wastewater
18.2 	treatment facility on or after March 28, 2000, or the grantee
18.3 	agrees to comply with the applicable limit as a condition of
18.4 	receiving the grant;
18.5 	(2) the governmental unit has submitted a facilities plan
18.6 	for the project to the agency and a grant application to the
18.7 	authority on a form prescribed by the authority; and 
18.8 	(3) the agency has approved the application and facilities
18.9 	plan, and certified the eligible costs for the project to the
18.10 	authority.
18.11 		Subd. 3.Eligible capital costs. Eligible capital costs
18.12 	for phosphorus reduction grants under subdivision 4, paragraph
18.13 	(a), include the as-bid construction costs and engineering
18.14 	planning and design costs.  Eligible capital costs for
18.15 	phosphorus reduction grants under subdivision 4, paragraph (b),
18.16 	include the final, incurred construction, engineering, planning,
18.17 	and design costs.
18.18 		Subd. 4.Grant amounts and priorities. (a) Priority must
18.19 	be given to projects that start construction on or after July 1,
18.20 	2005.  If a facility's plan for a project is approved by the
18.21 	agency before July 1, 2009, the amount of the grant is 75
18.22 	percent of the eligible capital cost of the project.  If a
18.23 	facility's plan for a project is approved by the agency on or
18.24 	after July 1, 2009, the amount of the grant is 50 percent of the
18.25 	eligible capital cost of the project.  Priority in awarding
18.26 	grants under this paragraph must be based on the date of
18.27 	approval of the facility's plan for the project.
18.28 	(b) Projects that meet the eligibility requirements in
18.29 	subdivision 2 and have started construction before July 1, 2005,
18.30 	are eligible for grants to reimburse up to 75 percent of the
18.31 	eligible capital cost of the project, less any amounts
18.32 	previously received in grants from other sources.  Application
18.33 	for a grant under this paragraph must be submitted to the agency
18.34 	no later than June 30, 2007.  Priority for award of grants under
18.35 	this paragraph must be based on the date of agency approval of
18.36 	the application for the grant.
19.1 	(c) In each fiscal year that money is available for grants,
19.2 	the authority shall first award grants under paragraph (a) to
19.3 	projects that met the eligibility requirements of subdivision 2
19.4 	by May 1 of that year.  The authority shall use any remaining
19.5 	money available that year to award grants under paragraph (b).
19.6 	Grants that have been approved but not awarded in a previous
19.7 	fiscal year carry over and must be awarded in subsequent fiscal
19.8 	years in accordance with the priorities in this paragraph.
19.9 	(d) Disbursements of grants under this section by the
19.10 	authority to recipients must be made for eligible project costs
19.11 	as incurred by the recipients, and must be made by the authority
19.12 	in accordance with the project financing agreement and
19.13 	applicable state law.
19.14 		Subd. 5.Fees. The authority may charge the grant
19.15 	recipient a fee for its administrative costs not to exceed
19.16 	one-half of one percent of the grant amount, to be paid upon
19.17 	execution of the grant agreement.

19.18 	Sec. 11. [446A.074] COMMUNITY SEPTIC SYSTEM LOAN
19.19 	PROGRAM.
19.20 		Subdivision 1.Creation of fund. The authority shall
19.21 	establish a community septic system replacement fund and shall
19.22 	make loans from the fund as provided in this section.  Money in
19.23 	the fund is annually appropriated to the authority and does not
19.24 	lapse.  The fund shall be credited with all loan repayments and
19.25 	investment income from the fund, and servicing fees assessed
19.26 	under section 446A.04, subdivision 5.  The authority shall
19.27 	manage and administer the community septic system replacement
19.28 	fund and, for these purposes, may exercise all powers provided
19.29 	in this chapter.
19.30 		Subd. 2.Loans. The authority shall award loans to
19.31 	governmental units from the community septic system replacement
19.32 	fund for projects to replace failing or inadequate individual
19.33 	sewage treatment systems with new individual sewage treatment
19.34 	systems.  A governmental unit receiving a loan from the fund
19.35 	shall own the individual sewage treatment systems built under
19.36 	the program and shall be responsible, either directly or through
20.1 	a contract with a private vendor, for all inspections,
20.2 	maintenance, and repairs necessary to assure proper operation of
20.3 	the systems.
20.4 		Subd. 3.Project priority list. Governmental units
20.5 	seeking loans from the community septic system loan program
20.6 	shall first submit a project proposal to the agency.  A project
20.7 	proposal must include an identification and description of the
20.8 	condition of all individual sewage treatment systems in the
20.9 	project area.  The agency shall rank project proposals on its
20.10 	project priority list used for the water pollution control
20.11 	revolving fund under section 446A.07.
20.12 		Subd. 4.Loan applications. Governmental units with
20.13 	projects on the project priority list shall submit applications
20.14 	to the authority on forms prescribed by the authority.  The
20.15 	application must include:
20.16 	(1) a list of the individual sewage treatment systems
20.17 	proposed to be replaced over a period of up to three years;
20.18 	(2) a project schedule and cost estimate for each year of
20.19 	the project;
20.20 	(3) a financing plan for repayment of the loan; and 
20.21 	(4) a management plan providing for the inspection,
20.22 	maintenance, and repairs necessary to assure proper operation of
20.23 	the systems.
20.24 		Subd. 5.Loan awards. The authority shall award loans to
20.25 	governmental units with approved loan applications based on
20.26 	their ranking on the agency's project priority list.  The loan
20.27 	amount must be based on the estimated project costs for the
20.28 	portion of the project expected to be completed within one year,
20.29 	up to an annual maximum of $500,000.  For projects expected to
20.30 	take more than one year to complete, the authority may make a
20.31 	multiyear commitment for a period not to exceed three years,
20.32 	contingent on the future availability of funds.  Each year of a
20.33 	multiyear commitment must be funded by a separate loan agreement
20.34 	meeting the terms and conditions in subdivision 6.  A
20.35 	governmental unit receiving a loan under a multiyear commitment
20.36 	has priority for additional loan funds in subsequent years.
21.1 		Subd. 6.Loan terms and conditions. Loans from the
21.2 	community septic system replacement fund must comply with the
21.3 	following terms and conditions:
21.4 	(1) principal and interest payments must begin no later
21.5 	than two years after the loan is awarded;
21.6 	(2) loans must carry an interest rate of one percent and
21.7 	must be fully amortized within ten years of the first scheduled
21.8 	payment;
21.9 	(3) a governmental unit receiving a loan must establish a
21.10 	dedicated source or sources of revenues for repayment of the
21.11 	loan and must issue a general obligation note to the authority
21.12 	for the full amount of the loan; and 
21.13 	(4) each property owner to be served by an individual
21.14 	sewage treatment system under this program must provide a
21.15 	permanent easement to the governmental unit to allow access to
21.16 	the system for inspections, maintenance, and repairs.
21.17 		Subd. 7.Special assessment deferral. (a) A governmental
21.18 	unit that receives a loan under this section, and levies special
21.19 	assessments to repay the loan, may defer payment of the
21.20 	assessments under sections 435.193 to 435.195.
21.21 	(b) A governmental unit that defers payment of special
21.22 	assessments for one or more properties under paragraph (a) may
21.23 	request deferral of that portion of the debt service on its
21.24 	loan, and the authority shall accept appropriate amendments to
21.25 	the general obligation note of the governmental unit.  If
21.26 	special assessment payments are later received from properties
21.27 	that received a deferral, the funds received must be paid to the
21.28 	authority with the next scheduled loan payment.
21.29 		Subd. 8.Eligible costs. Eligible costs for community
21.30 	septic system loans include the costs of planning, design,
21.31 	construction, legal fees, administration, and land acquisition.
21.32 		Subd. 9.Disbursements. Loan disbursements by the
21.33 	authority under this section must be made for eligible project
21.34 	costs as incurred by the recipients, and must be made in
21.35 	accordance with the project loan agreement and applicable state
21.36 	law.
22.1 		Subd. 10.Audits. A governmental unit receiving a loan
22.2 	under this section must annually provide to the authority for
22.3 	the term of the loan a copy of its annual independent audit or,
22.4 	if the governmental unit is not required to prepare an
22.5 	independent audit, a copy of the annual financial reporting form
22.6 	it provides to the state auditor.

22.7 	Sec. 12. APPROPRIATIONS.
 22.8 		Subdivision 1.General provisions. The appropriations in
22.9 	this section are from the environmental fund and are available
22.10 	for the fiscal years ending June 30, 2006, and June 30, 2007.
22.11 	Unless otherwise specified in this section, these appropriations
22.12 	do not cancel and remain available until June 30, 2007.
22.13 	Appropriations in this section that are encumbered under
22.14 	contract, including grant contract, on or before June 30, 2007,
22.15 	are available until June 30, 2009.
22.16 		Subd. 2.Department of revenue; fee collection
22.17 	costs. $38,000 in fiscal year 2006 and $31,000 in fiscal year
22.18 	2007 are appropriated to the Department of Revenue to pay the
22.19 	costs of collection and administration of the clean water fees
22.20 	imposed in Minnesota Statutes, section 114D.40.
22.21 		Subd. 3.Pollution control agency. The following amounts
22.22 	are appropriated to the Pollution Control Agency for the
22.23 	purposes stated:
22.24 	(1) $1,000,000 in fiscal year 2006 is to assist counties in
22.25 	developing the list required under Minnesota Statutes, section
22.26 	114D.40, subdivision 4, paragraph (e), of persons subject to
22.27 	clean water fees under Minnesota Statutes, section 114D.40,
22.28 	subdivision 3, paragraphs (f) and (g);
22.29 	(2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal
22.30 	year 2007 are for statewide assessment of surface water quality
22.31 	and trends; of these amounts, up to $1,474,000 in fiscal year
22.32 	2006 and $3,256,600 in fiscal year 2007 are available for grants
22.33 	or contracts to support citizen monitoring of surface waters;
22.34 	and 
22.35 	(3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal
22.36 	year 2007 are to develop TMDL's for waters listed on the United
23.1 	States Environmental Protection Agency approved 2004 impaired
23.2 	waters list; of this appropriation, up to $384,950 in fiscal
23.3 	year 2006 and $1,118,750 in fiscal year 2007 are available for
23.4 	grants or contracts to develop TMDL's.
23.5 		Subd. 4.Agriculture department. The following amounts
23.6 	are appropriated to the Department of Agriculture for the
23.7 	purposes stated:
23.8 	(1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal
23.9 	year 2007 are for agricultural best management practices
23.10 	low-interest loans to producers and rural landowners; of these
23.11 	amounts, $200,000 in fiscal year 2006 and $2,100,000 in fiscal
23.12 	year 2007 are available for pass-through to local governments
23.13 	and lenders for low-interest loans;
23.14 	(2) $350,000 in fiscal year 2006 and $800,000 in fiscal
23.15 	year 2007 are to expand technical assistance to producers and
23.16 	conservation professionals on nutrient and pasture management;
23.17 	target practices to sources of water impairments; coordinate
23.18 	federal and state farm conservation programs to fully utilize
23.19 	federal conservation funds; and expand conservation planning
23.20 	assistance for producers; of these amounts, $50,000 in fiscal
23.21 	year 2006 and $210,000 in fiscal year 2007 are available for
23.22 	grants or contracts to develop nutrient and conservation
23.23 	planning assistance information materials; and 
23.24 	(3) $100,000 in fiscal year 2006 and $800,000 in fiscal
23.25 	year 2007 are for research, evaluation, and effectiveness
23.26 	monitoring of agricultural practices in restoring impaired
23.27 	waters; of these amounts, $600,000 in fiscal year 2007 is
23.28 	available for grants or contracts for research, evaluations, and
23.29 	effectiveness monitoring of agricultural practices in restoring
23.30 	impaired waters, including on-farm demonstrations.
23.31 		Subd. 5.Board of water and soil resources. The
23.32 	following amounts are appropriated to the Board of Water and
23.33 	Soil Resources for restoration and prevention actions as
23.34 	described in Minnesota Statutes, section 114D.20, subdivisions 6
23.35 	and 7:
23.36 	(1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal
24.1 	year 2007 are for targeted nonpoint restoration cost-share and
24.2 	incentive payments; of these amounts, up to $450,000 in fiscal
24.3 	year 2006 and $5,450,000 in fiscal year 2007 are available for
24.4 	grants to soil and water conservation districts through the
24.5 	state cost-share program authorized under Minnesota Statutes,
24.6 	section 103C.501;
24.7 	(2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal
24.8 	year 2007 are for targeted nonpoint restoration technical and
24.9 	engineering assistance activities; of these amounts, up to
24.10 	$412,000 in fiscal year 2006 and $3,250,000 in fiscal year 2007
24.11 	are available for grants to soil and water conservation
24.12 	districts, watershed management organizations, or counties to
24.13 	support nonpoint restoration implementation activities;
24.14 	(3) $200,000 in fiscal year 2007 is for reporting and
24.15 	evaluation of applied soil and water conservation practices;
24.16 	(4) $2,400,000 in fiscal year 2007 is for grants to
24.17 	counties for implementation of county individual sewage
24.18 	treatment systems programs through the local water resources
24.19 	protection and management program under Minnesota Statutes,
24.20 	section 103B.3369;
24.21 	(5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal
24.22 	year 2007 are for base and challenge grants to support nonpoint
24.23 	source protection activities related to lake and river
24.24 	protection and management through the local water resources
24.25 	protection and management program under Minnesota Statutes,
24.26 	section 103B.3369; and 
24.27 	(6) $2,400,000 in fiscal year 2007 is for grants to soil
24.28 	and water conservation districts for streambank, stream channel,
24.29 	lakeshore, and roadside protection and restoration projects
24.30 	through the state-cost share program under Minnesota Statutes,
24.31 	section 103C.501.
24.32 		Subd. 6.Department of natural resources. The following
24.33 	amounts are appropriated to the Department of Natural Resources
24.34 	for the purposes stated:
24.35 	(1) $280,000 in fiscal year 2006 and $430,000 in fiscal
24.36 	year 2007 are for statewide assessment of surface water quality
25.1 	and trends; and 
25.2 	(2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal
25.3 	year 2007 are for restoration of impaired waters and actions to
25.4 	prevent waters from becoming impaired; of these amounts, up to
25.5 	$1,700,000 in fiscal year 2007 is available for grants and
25.6 	contracts for forest stewardship planning and implementation,
25.7 	and for research and monitoring.
25.8 		Subd. 7.Public facilities authority. $4,400,000 in
25.9 	fiscal year 2006 and $44,015,000 in fiscal year 2007 are
25.10 	appropriated to the Public Facilities Authority; of these
25.11 	amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in
25.12 	fiscal year 2007 are to the clean water legacy capital
25.13 	improvements fund for grants under Minnesota Statutes, section
25.14 	446A.073; $4,582,000 in fiscal year 2007 is to the community
25.15 	septic system replacement fund for loans under Minnesota
25.16 	Statutes, section 446A.074; and $22,433,000 in fiscal year 2007
25.17 	is to the water pollution control revolving fund under Minnesota
25.18 	Statutes, section 446.07, for wastewater treatment and
25.19 	stormwater projects.  Funds appropriated under this subdivision
25.20 	do not cancel and are available until expended.

25.21 	Sec. 13. EFFECTIVE DATE.
 25.22 	Sections 1 to 11 are effective the day following final
25.23 	enactment.  Section 12 is effective July 1, 2005.