1.1                          A bill for an act 
  1.2             relating to water; requiring legislative approval of 
  1.3             certain transfers of water into this state; amending 
  1.4             Minnesota Statutes 1996, sections 103G.261; and 
  1.5             103G.265, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 103G.261, is 
  1.8   amended to read: 
  1.9      103G.261 [WATER ALLOCATION PRIORITIES.] 
  1.10     (a) The commissioner shall adopt rules for allocation of 
  1.11  waters based on the following priorities for the consumptive 
  1.12  appropriation and use of water: 
  1.13     (1) first priority, domestic water supply, excluding 
  1.14  industrial and commercial uses of municipal water supply, and 
  1.15  use for power production that meets the contingency planning 
  1.16  provisions of section 103G.285, subdivision 6; 
  1.17     (2) second priority, a use of water that involves 
  1.18  consumption of less than 10,000 gallons of water per day; 
  1.19     (3) third priority, agricultural irrigation, and processing 
  1.20  of agricultural products involving consumption in excess of 
  1.21  10,000 gallons per day; 
  1.22     (4) fourth priority, power production in excess of the use 
  1.23  provided for in the contingency plan developed under section 
  1.24  103G.285, subdivision 6; 
  1.25     (5) fifth priority, uses, other than agricultural 
  2.1   irrigation, processing of agricultural products, and power 
  2.2   production, involving consumption in excess of 10,000 gallons 
  2.3   per day; and 
  2.4      (6) sixth priority, nonessential uses. 
  2.5      (b) For the purposes of this section, "consumption" means 
  2.6   water withdrawn from a supply that is lost for immediate further 
  2.7   use in the area. 
  2.8      (c) Appropriation and use of surface water from streams 
  2.9   during periods of flood flows and high water levels must be 
  2.10  encouraged subject to consideration of the purposes for use, 
  2.11  quantities to be used, and the number of persons appropriating 
  2.12  water. 
  2.13     (d) Appropriation and use of surface water from lakes of 
  2.14  less than 500 acres in surface area must be discouraged. 
  2.15     (e) The treatment and reuse of water for nonconsumptive 
  2.16  uses shall be encouraged. 
  2.17     (f) Diversions of water from the state for use in other 
  2.18  states or regions of the United States or Canada must be 
  2.19  discouraged. 
  2.20     (g) A diversion of water originating from another state for 
  2.21  use in this state may be encouraged if the diversion remains 
  2.22  within the same water basin and complies with the provisions of 
  2.23  section 103G.265, subdivision 2a. 
  2.24     Sec. 2.  Minnesota Statutes 1996, section 103G.265, is 
  2.25  amended by adding a subdivision to read: 
  2.26     Subd. 2a.  [DIVERSION GREATER THAN 2,000,000 GALLONS PER 
  2.27  DAY INTO STATE.] (a) A diversion of waters greater than 
  2.28  2,000,000 gallons per day average in a 30-day period into this 
  2.29  state must be approved by the legislature.  Before the 
  2.30  legislature may provide approval, the commissioner must: 
  2.31     (1) notify and solicit comments on the project from the 
  2.32  governor and appropriate water management agencies of the 
  2.33  affected state or states, the appropriate local units of 
  2.34  government, and the general public; 
  2.35     (2) prepare a report on the proposed diversion, including a 
  2.36  description of the benefits, costs, and alternatives; and 
  3.1      (3) make a recommendation to the legislature regarding 
  3.2   approval of the proposed diversion. 
  3.3      (b) If another agency, office, or commission of this state 
  3.4   objects to the commissioner's recommendation, the commissioner 
  3.5   shall convene a meeting with the objecting agency, office, or 
  3.6   commission to examine and consider the issues involved and to 
  3.7   seek a mutually agreeable solution to be proposed in the 
  3.8   commissioner's recommendation to the legislature.  If no 
  3.9   mutually agreeable solution can be found, the commissioner shall 
  3.10  include a statement from the objecting agency, office, or 
  3.11  commission in the commissioner's report to the legislature.