1.1                          A bill for an act 
  1.2             relating to the environment; authorizing spending to 
  1.3             acquire and to better public land and buildings and 
  1.4             other public improvements; appropriating money; 
  1.5             amending Minnesota Statutes 1996, sections 17.117, 
  1.6             subdivision 3; 85.019, subdivision 4a, and by adding a 
  1.7             subdivision; 103F.725, subdivision 1a; 116.16, 
  1.8             subdivision 5; 116.182, subdivision 1, and by adding a 
  1.9             subdivision; and 446A.072, subdivisions 2, 4, 7, 9, 
  1.10            and 12; Minnesota Statutes 1997 Supplement, sections 
  1.11            84.027, subdivision 15; and 116.18, subdivision 3c; 
  1.12            proposing coding for new law in Minnesota Statutes, 
  1.13            chapter 85; repealing Minnesota Statutes 1997 
  1.14            Supplement, section 446A.072, subdivision 4a. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16  Section 1.  [ENVIRONMENT; APPROPRIATIONS.] 
  1.17     The sums in the column under "APPROPRIATIONS" are 
  1.18  appropriated from the general fund, or another named fund, to 
  1.19  the state agencies or officials indicated.  Unless otherwise 
  1.20  specified, general fund appropriations in this act are one-time 
  1.21  appropriations and are available until June 30, 2002. 
  1.22                          SUMMARY BY FUND 
  1.23  General Fund                                     $  190,400,000 
  1.24                                                   APPROPRIATIONS
  1.25  Sec. 2.  NATURAL RESOURCES 
  1.26  Subdivision 1.  To the 
  1.27  commissioner of natural resources 
  1.28  for the purposes specified
  1.29  in this section                                     120,400,000
  1.30  Subd. 2.  Statewide Asset
  1.31  Preservation                                          2,282,000
  1.32  For repair and renovation of the 
  2.1   department of natural resources land, 
  2.2   buildings, or other improvements of a 
  2.3   capital nature throughout the state.  
  2.4   The commissioner shall determine 
  2.5   project priorities as appropriate based 
  2.6   upon need. 
  2.7   Subd. 3.  Office Facility
  2.8   Consolidation                                         9,921,000
  2.9   To acquire land, design, construct, 
  2.10  furnish, and equip offices and service 
  2.11  facilities at consolidated office sites 
  2.12  in Windom, Tower, and St. Cloud. 
  2.13  Subd. 4.  State Park and Recreation
  2.14  Area Building Rehabilitation                          3,255,000
  2.15  To design, repair, rehabilitate, 
  2.16  construct, or add to state park 
  2.17  buildings throughout the state, 
  2.18  according to the management plan 
  2.19  required in Minnesota Statutes, chapter 
  2.20  86A.  The commissioner shall determine 
  2.21  project priorities as appropriate based 
  2.22  upon need. 
  2.23  Subd. 5.  State Park and Recreation
  2.24  Area Building Development                             4,585,000
  2.25  To design, construct, furnish, and 
  2.26  equip new buildings and associated 
  2.27  utilities in the state park system, 
  2.28  according to the management plan 
  2.29  required in Minnesota Statutes, chapter 
  2.30  86A.  
  2.31  Subd. 6.  State Park and Recreation
  2.32  Area Betterment and Rehabilitation                    2,021,000
  2.33  To upgrade, repair, or rehabilitate 
  2.34  improvements of a capital nature at 
  2.35  state park and recreation area 
  2.36  facilities throughout the state, 
  2.37  including, but not limited to, resource 
  2.38  management projects, trail 
  2.39  rehabilitation, campground 
  2.40  rehabilitation, and road and bridge 
  2.41  repair.  The commissioner shall 
  2.42  determine project priorities as 
  2.43  appropriate based upon need. 
  2.44  Subd. 7.  State Park and 
  2.45  Recreation Area Acquisition                           2,500,000
  2.46  For acquisition from willing sellers of 
  2.47  private lands within state park and 
  2.48  recreation area boundaries established 
  2.49  by law.  The commissioner shall 
  2.50  determine project priorities as 
  2.51  appropriate based upon need. 
  2.52  Subd. 8.  U.S.S. Des Moines                             200,000 
  2.53  For planning and to preserve options 
  2.54  for the possible future acquisition and 
  2.55  placement of the U.S.S. Des Moines. 
  2.56  Subd. 9.  Metro Regional Park 
  2.57  Acquisition and Betterment                            9,825,000
  3.1   For payment to the metropolitan 
  3.2   council.  The commissioner shall pay 
  3.3   the amount on a reimbursement basis to 
  3.4   the metropolitan council upon receipt 
  3.5   of a certified copy of a council 
  3.6   resolution requesting payment.  The 
  3.7   appropriation must be used to pay the 
  3.8   cost of rehabilitation, acquisition, 
  3.9   and development by the council and 
  3.10  local government units of regional 
  3.11  recreational open-space lands in 
  3.12  accordance with the council's policy 
  3.13  plan as provided in Minnesota Statutes, 
  3.14  section 473.315.  This appropriation 
  3.15  must not be used for research, 
  3.16  planning, administration, or tax 
  3.17  equivalency payments.  This 
  3.18  appropriation may be used for the 
  3.19  purchase of homes only if the purchases 
  3.20  are included in the work program 
  3.21  required by law and they are expressly 
  3.22  approved by the legislative commission 
  3.23  on Minnesota resources.  
  3.24  Subd. 10.  Dam Improvements                           1,000,000 
  3.25  For the emergency repair, 
  3.26  reconstruction, or removal of publicly 
  3.27  owned dams throughout the state.  Up to 
  3.28  $300,000 of this appropriation is for a 
  3.29  grant to the city of Appleton for 
  3.30  removal of a dam located on the Pomme 
  3.31  de Terre river in Swift county.  The 
  3.32  commissioner shall determine remaining 
  3.33  project priorities as appropriate based 
  3.34  upon need as provided in Minnesota 
  3.35  Statutes, section 103G.511. 
  3.36  Subd. 11.  Flood Hazard
  3.37  Mitigation Grants                                    38,200,000
  3.38  For the flood hazard mitigation grant 
  3.39  program to local government units for 
  3.40  capital improvements to prevent or 
  3.41  alleviate flood damages under Minnesota 
  3.42  Statutes, section 103F.161, including 
  3.43  $1,500,000 for the construction of ring 
  3.44  dikes.  The commissioner shall 
  3.45  determine project priorities as 
  3.46  appropriate based upon need.  As soon 
  3.47  as the section 205 study for the city 
  3.48  of Breckenridge is complete, the 
  3.49  commissioner shall make a 
  3.50  recommendation to the legislature for 
  3.51  the funding necessary to complete flood 
  3.52  hazard mitigation efforts in the city.  
  3.53  This appropriation contains the amount 
  3.54  necessary to fully fund the state share 
  3.55  of the East Grand Forks project. Grants 
  3.56  under this subdivision are exempt from 
  3.57  the requirements of Minnesota Statutes, 
  3.58  section 16B.335. 
  3.59  Subd. 12.  Forest Road and
  3.60  Bridge Projects                                       1,000,000
  3.61  For reconstruction, resurfacing, 
  3.62  replacement, or construction of 
  3.63  improvements of a capital nature to 
  3.64  state forest roads and bridges 
  3.65  throughout the state.  The commissioner 
  4.1   shall determine project priorities as 
  4.2   appropriate based upon need. 
  4.3   Subd. 13.  Forestry Land Acquisition                    800,000 
  4.4   To acquire private lands from willing 
  4.5   sellers within established boundaries 
  4.6   of state forests throughout the state.  
  4.7   The commissioner shall determine 
  4.8   project priorities as appropriate based 
  4.9   upon need. 
  4.10  Subd. 14.  Forestry Recreation
  4.11  Facilities                                              750,000
  4.12  For improvements of a capital nature to 
  4.13  rehabilitate, improve, or develop 
  4.14  forestry recreation facilities 
  4.15  throughout the state.  The commissioner 
  4.16  shall determine project priorities as 
  4.17  appropriate based upon need. 
  4.18  Subd. 15.  RIM Wildlife Management Areas, 
  4.19  Critical Habitat, and North American 
  4.20  Waterfowl Management Plan                             8,841,000
  4.21  $1,000,000 of this appropriation is to 
  4.22  acquire land for wildlife management 
  4.23  areas under Minnesota Statutes, section 
  4.24  97A.135; $7,341,000 is for the critical 
  4.25  habitat private sector matching account 
  4.26  under Minnesota Statutes, section 
  4.27  84.943; and $500,000 is for acquisition 
  4.28  and wetland restoration under the North 
  4.29  American Waterfowl Management Plan.  
  4.30  The commissioner shall determine 
  4.31  project priorities as appropriate based 
  4.32  upon need.  
  4.33  Subd. 16.  RIM Fish Hatchery
  4.34  Rehabilitation                                        1,300,000
  4.35  For improvements of a capital nature to 
  4.36  rehabilitate, improve, or develop fish 
  4.37  culture facilities. 
  4.38  Subd. 17.  RIM Wildlife,
  4.39  Habitat Improvements                                  3,000,000
  4.40  For improvements of a capital nature to 
  4.41  develop, protect, or improve wildlife 
  4.42  management areas and other state lands 
  4.43  throughout the state.  The commissioner 
  4.44  shall determine project priorities as 
  4.45  appropriate based upon need.  
  4.46  Subd. 18.  Stream Protection
  4.47  and Restoration                                       1,500,000
  4.48  For the acquisition of easements and 
  4.49  aquatic management areas on streams for 
  4.50  fisheries management purposes; and 
  4.51  stream restoration on portions of the 
  4.52  Whitewater river and Sandy river. 
  4.53  Subd. 19.  Scientific and Natural Area and
  4.54  Prairie Bank Acquisition and Improvement              2,300,000
  4.55  $1,500,000 of this appropriation is to 
  4.56  acquire land related to scientific and 
  4.57  natural areas pursuant to Minnesota 
  5.1   Statutes, section 84.033; $400,000 is 
  5.2   for acquisition of prairie bank 
  5.3   easements pursuant to Minnesota 
  5.4   Statutes, section 84.96; and $400,000 
  5.5   is for development, protection, or 
  5.6   improvements of a capital nature to 
  5.7   scientific and natural areas throughout 
  5.8   the state.  Scientific and natural area 
  5.9   acquisition that is consistent with the 
  5.10  greenways and natural areas 
  5.11  collaborative must be given priority 
  5.12  for funding. The commissioner shall 
  5.13  determine other project priorities as 
  5.14  appropriate based upon need.  
  5.15  Subd. 20.  Accelerated Wildlife
  5.16  Habitat Management                                    1,100,000
  5.17  For wildlife habitat improvement. Of 
  5.18  this amount, $900,000 is for winter 
  5.19  wildlife habitat improvement for 
  5.20  pheasants and other grassland wildlife 
  5.21  in key farmland areas and $200,000 is 
  5.22  for brushland and forest habitat 
  5.23  renewal for sharp-tailed grouse and 
  5.24  other species of birds dependent on 
  5.25  open brushlands in forest areas. 
  5.26  Subd. 21.  Water Access
  5.27  Acquisition and Development                           1,000,000
  5.28  For public water access acquisition 
  5.29  development and rehabilitation on lakes 
  5.30  and rivers including boat access 
  5.31  through the provision of fishing piers 
  5.32  and shoreline access. 
  5.33  Subd. 22.  Trail Acquisition
  5.34  and Development                                       9,500,000
  5.35  For acquisition and development of a 
  5.36  capital nature on state trails as 
  5.37  specified in Minnesota Statutes, 
  5.38  section 85.015.  The commissioner shall 
  5.39  determine project priorities as 
  5.40  appropriate based upon need.  
  5.41  $1,500,000 of this appropriation is for 
  5.42  the state targeting accessible 
  5.43  recreation trails (START) project to 
  5.44  complete the trail survey, 
  5.45  prioritizing, and preengineering work 
  5.46  for all 100 major recreation areas and 
  5.47  to improve accessibility in up to 35 of 
  5.48  these areas.  This appropriation 
  5.49  includes money for an alternate trail 
  5.50  surface on the Heartland trail and for 
  5.51  acquisition of the extension of the 
  5.52  Blufflands trail from Preston to 
  5.53  Forestville state park and the Blazing 
  5.54  Star trail. 
  5.55  Subd. 23.  Mississippi Whitewater 
  5.56  Trail                                                   100,000
  5.57  For engineering and hydraulic studies 
  5.58  in conjunction with the proposed 
  5.59  development of an urban whitewater 
  5.60  trail along the Mississippi river in 
  5.61  the lower St. Anthony Falls area below 
  5.62  the stone arch bridge in Minneapolis 
  5.63  and to examine the economic impact, 
  6.1   market use potential, public safety 
  6.2   concerns, environmental considerations, 
  6.3   and land and water use impacts of the 
  6.4   proposed Mississippi Whitewater trail.  
  6.5   The commissioner must coordinate and 
  6.6   work with affected local, state, and 
  6.7   federal governments and interested 
  6.8   citizen groups, including, but not 
  6.9   limited to, the National Park Service, 
  6.10  the United States Army Corps of 
  6.11  Engineers, the University of Minnesota, 
  6.12  the Minnesota historical society, the 
  6.13  metropolitan parks and open space 
  6.14  commission, the Minneapolis park board, 
  6.15  and the Mississippi Whitewater Park 
  6.16  Development Corporation.  The 
  6.17  commissioner must report to the senate 
  6.18  environment and agriculture budget 
  6.19  division and the house environment, 
  6.20  natural resources, and agriculture 
  6.21  finance committee by November 1, 1999, 
  6.22  on the findings from the studies 
  6.23  required under this subdivision.  This 
  6.24  appropriation is available until June 
  6.25  30, 1999. 
  6.26  Subd. 24.  Lake Superior
  6.27  Safe Harbors                                          5,150,000
  6.28  For acquisition, design, and 
  6.29  development of safe harbors and public 
  6.30  accesses on Lake Superior at Taconite 
  6.31  Harbor, Two Harbors, and Knife river.  
  6.32  This appropriation is intended to 
  6.33  maximize federal matching funds from 
  6.34  the United States Army Corps of 
  6.35  Engineers.  
  6.36  Subd. 25.  Local Initiative Grants                    6,500,000 
  6.37  For matching grants to be provided to 
  6.38  local units of government to purchase 
  6.39  interests in land, development, or 
  6.40  renovation of a capital nature of local 
  6.41  parks, trails, and natural and scenic 
  6.42  areas.  Recipients must provide a match 
  6.43  of at least one-half of total eligible 
  6.44  project costs.  The commissioner shall 
  6.45  make payment to local units of 
  6.46  government upon receiving documentation 
  6.47  of reimbursable expenditures.  The 
  6.48  commissioner shall determine project 
  6.49  priorities as appropriate based upon 
  6.50  need. 
  6.51  $1,000,000 of this appropriation is for 
  6.52  grants to units of government to 
  6.53  acquire and develop outdoor recreation 
  6.54  areas. 
  6.55  $1,000,000 of this appropriation is for 
  6.56  cooperative trail grants of up to 
  6.57  $50,000 per project for trail linkages 
  6.58  between communities, trails, and parks. 
  6.59  $2,500,000 of this appropriation is for 
  6.60  regional trail grants under Minnesota 
  6.61  Statutes, section 85.019, subdivision 
  6.62  4b.  Priority shall be given to 
  6.63  matching funds for an ISTEA grant. 
  7.1   $500,000 of this appropriation is for 
  7.2   the cost of development and acquisition 
  7.3   of the Southwest regional trail in the 
  7.4   city of St. Louis Park.  The trail must 
  7.5   connect the Minneapolis regional trail 
  7.6   system at Cedar Lake park to the 
  7.7   Hennepin parks regional trail system at 
  7.8   the Hopkins trail head.  
  7.9   $1,500,000 of this appropriation is for 
  7.10  grants to units of government to 
  7.11  acquire and better natural and scenic 
  7.12  areas under Minnesota Statutes, section 
  7.13  85.019, subdivision 4a.  Acquisition 
  7.14  that is consistent with the greenways 
  7.15  and natural areas collaborative must be 
  7.16  given priority for funding. 
  7.17  Grants under this subdivision are 
  7.18  exempt from the requirements of 
  7.19  Minnesota Statutes, section 16B.335. 
  7.20  Subd. 26.  Hartley Nature Center                        120,000 
  7.21  For a grant to the city of Duluth for 
  7.22  improvements to the Hartley Nature 
  7.23  Center to the extent matched by 
  7.24  nonstate sources. 
  7.25  Subd. 27.  Laurentian         
  7.26  Environmental Center                                    800,000
  7.27  For a grant to independent school 
  7.28  district No. 621, Mounds View, for 
  7.29  capital improvements at the Laurentian 
  7.30  Environmental Learning Center, 
  7.31  including remodeling of existing 
  7.32  buildings, construction of new 
  7.33  buildings, demolition, and access 
  7.34  improvements for people with 
  7.35  disabilities.  $300,000 of this 
  7.36  appropriation is available 
  7.37  immediately.  The balance is available 
  7.38  to the extent matched by money from 
  7.39  other sources. 
  7.40  Subd. 28.  International Wolf Center                    350,000 
  7.41  For capital improvements to the 
  7.42  International Wolf Center, including 
  7.43  repair of grounds and buildings, 
  7.44  improvements to the heating and 
  7.45  ventilation system, the wolf enclosure, 
  7.46  and the children's exhibit room, and 
  7.47  added facilities for vehicle garaging 
  7.48  and a workshop. 
  7.49  Subd. 29.  Savage Water       
  7.50  Supply System                                         2,000,000
  7.51  $2,000,000 is for a grant to the city 
  7.52  of Savage for a water supply system.  
  7.53  The system must implement uniform 
  7.54  demand management measures and provide 
  7.55  for alternative sustainable water 
  7.56  sources while protecting the Savage Fen 
  7.57  wetland complex and the water resources 
  7.58  of the aquifers.  Conservation and 
  7.59  demand reduction measures must be 
  7.60  adopted.  The system may be constructed 
  7.61  under authority of Minnesota Statutes, 
  8.1   section 471.59, 471.591, or other law.  
  8.2   The alternative sources of water must 
  8.3   be approved by the commissioner and 
  8.4   comply with permit requirements under 
  8.5   Minnesota Statutes, chapter 103G.  This 
  8.6   appropriation may not be used to pay 
  8.7   for more than 50 percent of the 
  8.8   additional costs incurred for 
  8.9   protection of the Savage Fen, as 
  8.10  determined by the commissioner. 
  8.11  No later than June 30, 1998, the 
  8.12  commissioner of finance shall transfer 
  8.13  $2,000,000 of the unencumbered balance 
  8.14  in the once-through cooling conversion 
  8.15  loan account from funds credited to the 
  8.16  account under Minnesota Statutes, 
  8.17  section 103G.271, subdivision 6, 
  8.18  paragraph (g), to the general fund. 
  8.19  Subd. 30.  Como Park Education Resource Center          500,000 
  8.20  For a grant to the city of St. Paul for 
  8.21  initial construction costs for the Como 
  8.22  Park education resource center. 
  8.23  The center must report to the chair of 
  8.24  the senate environment and agriculture 
  8.25  budget division, the chair of the house 
  8.26  environment and agriculture finance 
  8.27  committee, and the chairs of the senate 
  8.28  and house environment and natural 
  8.29  resources policy committees as soon as 
  8.30  the center has secured half of the 
  8.31  total project costs from nonstate 
  8.32  sources. 
  8.33  Subd. 31.  Work Program                                         
  8.34  The commissioner must submit a work 
  8.35  program and semiannual progress reports 
  8.36  in the form determined by the 
  8.37  legislative commission on Minnesota 
  8.38  resources and request its 
  8.39  recommendation before spending any 
  8.40  money appropriated by subdivision 4, 5, 
  8.41  6, 7, 9, 14, 15, 16, 17, 18, 19, 20, 
  8.42  21, 22, 24, 25, 27, or 28 of this 
  8.43  section.  The commission's 
  8.44  recommendation is advisory only.  
  8.45  Failure to respond to a request within 
  8.46  60 days after receipt is a positive 
  8.47  recommendation.  Work programs 
  8.48  involving land acquisition must include 
  8.49  a land acquisition plan. 
  8.50  Sec. 3.  OFFICE OF 
  8.51  ENVIRONMENTAL ASSISTANCE                              3,000,000
  8.52  To the office of environmental 
  8.53  assistance for the solid waste capital 
  8.54  assistance grants program under 
  8.55  Minnesota Statutes, section 115A.54.  
  8.56  Grants under this section are exempt 
  8.57  from the requirements of Minnesota 
  8.58  Statutes, section 16B.335. 
  8.59  Sec. 4.  PUBLIC FACILITIES AUTHORITY 
  8.60  Subdivision 1.  To the public
  8.61  facilities authority for the purposes
  9.1   specified in this section.                           44,300,000
  9.2   Subd. 2.  Matching Money
  9.3   for Federal Grants                                   15,000,000
  9.4   For state matching money for federal 
  9.5   grants to capitalize the water 
  9.6   pollution control fund and the drinking 
  9.7   water revolving fund under Minnesota 
  9.8   Statutes, sections 446A.07 and 446A.081.
  9.9   The expenditure and allocation of state 
  9.10  matching funds between funds shall be 
  9.11  based on the amount of federal funds 
  9.12  appropriated to the funds.  This 
  9.13  appropriation must be used for 
  9.14  qualified capital projects. 
  9.15  By October 1, 1998, the commissioner of 
  9.16  the pollution control agency shall 
  9.17  report to the chairs of the senate 
  9.18  environment and agriculture budget 
  9.19  division and the house environment, 
  9.20  natural resources, and agriculture 
  9.21  finance committee and the chairs of the 
  9.22  senate and house environment and 
  9.23  natural resources committees on the 
  9.24  feasibility and cost of options for 
  9.25  correcting sewage treatment system 
  9.26  problems in the city of Tracy. 
  9.27  Subd. 3.  Wastewater
  9.28  Infrastructure Program                               16,000,000
  9.29  For supplemental assistance to 
  9.30  municipalities under Minnesota 
  9.31  Statutes, section 446A.072.  Priority 
  9.32  shall be given to reimbursement of 
  9.33  cities with median annual household 
  9.34  incomes, based on the 1990 federal 
  9.35  census, of less than $26,000 that have 
  9.36  constructed projects that reduce 
  9.37  discharge into outstanding resource 
  9.38  value waters in order to comply with 
  9.39  more stringent wastewater standards 
  9.40  required to protect those waters.  The 
  9.41  amount of the reimbursement shall be 
  9.42  equal to the reimbursement the city 
  9.43  would have received pursuant to 
  9.44  Minnesota Statutes, section 446A.072, 
  9.45  subdivision 4, as it is amended by this 
  9.46  act. 
  9.47  The authority shall give priority to 
  9.48  matching grant funds on a 50 percent 
  9.49  basis with United States Department of 
  9.50  Agriculture rural development projects. 
  9.51  $300,000 is for a grant to the city of 
  9.52  Bayport for engineering of the storm 
  9.53  sewer reconstruction project, adjacent 
  9.54  to the department of corrections 
  9.55  Stillwater facility. 
  9.56  Subd. 4.  State Revolving Fund
  9.57  Supplemental                                         13,000,000
  9.58  For deposit in the water pollution 
  9.59  control fund under Minnesota Statutes, 
  9.60  section 446A.07, for the agricultural 
  9.61  best management practices loan program 
 10.1   under Minnesota Statutes, section 
 10.2   17.117, except that none of this 
 10.3   appropriation may be used for 
 10.4   conservation tillage equipment. 
 10.5   Sec. 5.  BOARD OF WATER AND SOIL RESOURCES 
 10.6   Subdivision 1.  To the board
 10.7   of water and soil resources for the
 10.8   purposes specified in this section.                  19,000,000
 10.9   Subd. 2.  RIM and PWP
 10.10  Conservation Easements                               15,000,000
 10.11  This appropriation is for the following 
 10.12  purposes: 
 10.13  (1) to acquire conservation easements 
 10.14  from landowners on marginal lands to 
 10.15  protect soil and water quality and to 
 10.16  support fish and wildlife habitat as 
 10.17  provided in Minnesota Statutes, section 
 10.18  103F.515; and 
 10.19  (2) to acquire perpetual conservation 
 10.20  easements on existing type 1, 2, 3, and 
 10.21  6 wetlands, adjacent lands, and for the 
 10.22  establishment of permanent cover on 
 10.23  adjacent lands, in accordance with 
 10.24  Minnesota Statutes, section 103F.516. 
 10.25  Up to $250,000 may be used for the 
 10.26  acquisition of flood storage easements 
 10.27  that allow haying, grazing, or other 
 10.28  activities approved by the board when 
 10.29  the flood storage is not needed, and 
 10.30  for the cost of constructing related 
 10.31  dikes and other structures necessary to 
 10.32  maintain water in the flood storage 
 10.33  easement areas.  Up to ten percent of 
 10.34  the appropriation may be used for 
 10.35  professional and technical services 
 10.36  related to acquisition of the easement. 
 10.37  The board, in consultation with the 
 10.38  commissioner of natural resources, must 
 10.39  select at least two local government 
 10.40  units for participation in the flood 
 10.41  storage easement pilot program based on 
 10.42  the potential and need for flood water 
 10.43  storage in the local area.  The board 
 10.44  may acquire the easement directly or 
 10.45  provide grants to the local government 
 10.46  units for their acquisition of 
 10.47  easements that conform with the 
 10.48  requirements established by the board.  
 10.49  A conservation easement must be for at 
 10.50  least ten years.  The board or the 
 10.51  local government unit must make the 
 10.52  following payments to the landowner for 
 10.53  the conservation easement and agreement:
 10.54  (1) to establish conservation practices 
 10.55  required by the easement, up to 75 
 10.56  percent of the total eligible cost, not 
 10.57  to exceed an average of $75 per acre; 
 10.58  and 
 10.59  (2) 25 percent of the payment rate for 
 10.60  20-year easements acquired under 
 10.61  Minnesota Statutes, section 103F.515; 
 11.1   or 
 11.2   (3) an alternative payment system for 
 11.3   easements as may be determined by the 
 11.4   board, in consultation with the 
 11.5   commissioner of natural resources. 
 11.6   By January 15, 2000, the board, in 
 11.7   conjunction with the commissioner of 
 11.8   natural resources, shall report to the 
 11.9   senate environment and agriculture 
 11.10  budget division and the house 
 11.11  environment, natural resources, and 
 11.12  agriculture finance committee on the 
 11.13  acquisition of easements under this 
 11.14  paragraph.  The report must include an 
 11.15  analysis of the benefit to expansion of 
 11.16  the program in other areas of the state 
 11.17  that are prone to flooding and on the 
 11.18  adequacy of payments under the pilot 
 11.19  program. 
 11.20  Subd. 3.  Local Government
 11.21  Road Replacement                                      3,000,000
 11.22  To acquire land, including related 
 11.23  wetland credits, and restore and create 
 11.24  wetlands for the replacement of 
 11.25  wetlands drained or filled by public 
 11.26  transportation projects on existing 
 11.27  roads as required by Minnesota 
 11.28  Statutes, section 103G.222, subdivision 
 11.29  1, paragraph (m). 
 11.30  The purchase price paid for acquisition 
 11.31  of land, fee or perpetual easement, 
 11.32  shall be the amount deemed reasonable 
 11.33  by the board.  The board may enter into 
 11.34  agreements with the federal government, 
 11.35  other state agencies, political 
 11.36  subdivisions, and nonprofit 
 11.37  organizations or fee owners for 
 11.38  acquisition of land and restoration and 
 11.39  creation of wetlands with funds 
 11.40  provided by this appropriation.  
 11.41  Acquisition of or the conveyance of 
 11.42  land may be in the name of the 
 11.43  political subdivision.  The 
 11.44  requirements of Minnesota Statutes, 
 11.45  sections 16B.07, 16B.19, and 177.41 to 
 11.46  177.44 shall not apply to agreements 
 11.47  for reimbursement of reasonable costs 
 11.48  incurred by a private fee owner or 
 11.49  nonprofit organization. 
 11.50  Subd. 4.  Area II Minnesota
 11.51  River Basin Grant-in-Aid Program                      1,000,000
 11.52  For grants to assist local governments 
 11.53  in acquiring and constructing 
 11.54  floodwater retention systems in area II 
 11.55  of the Minnesota river basin.  Projects 
 11.56  may include flood control reservoirs, 
 11.57  road retention structures, and other 
 11.58  floodwater mitigation improvements.  
 11.59  This appropriation must be matched by 
 11.60  at least $333,000 from nonstate 
 11.61  sources.  Grants under this subdivision 
 11.62  are exempt from the requirements of 
 11.63  Minnesota Statutes, section 16B.335. 
 12.1   Subd. 5.  Work Program                                          
 12.2   The board must submit a work program 
 12.3   and semiannual progress reports in the 
 12.4   form determined by the legislative 
 12.5   commission on Minnesota resources and 
 12.6   request its recommendation before 
 12.7   spending any money appropriated by this 
 12.8   section.  The commission's 
 12.9   recommendation is advisory only.  
 12.10  Failure to respond to a request within 
 12.11  60 days after receipt is a positive 
 12.12  recommendation.  Work programs 
 12.13  involving land acquisition must include 
 12.14  a land acquisition plan. 
 12.15  Sec. 6.  AGRICULTURE                                500,000
 12.16  For a grant to a political subdivision 
 12.17  that is chosen as a site for a soybean 
 12.18  oilseed processing and refining 
 12.19  facility, constructed by a 
 12.20  Minnesota-based cooperative.  This 
 12.21  appropriation is for site preparation, 
 12.22  predevelopment, and other 
 12.23  infrastructure improvements, including 
 12.24  public and private utility 
 12.25  improvements, that are necessary for 
 12.26  development of the oilseed processing 
 12.27  and refining facility.  This 
 12.28  appropriation is available until 
 12.29  December 31, 2000. 
 12.30  Sec. 7.  MINNESOTA ZOOLOGICAL
 12.31  GARDENS                                               3,200,000
 12.32  To the Minnesota zoological gardens for 
 12.33  design, repair, and reconstruction of 
 12.34  roadways, pathways, parking lots, 
 12.35  outdoor lighting, and public plaza 
 12.36  areas.  This appropriation is exempt 
 12.37  from the requirements of Minnesota 
 12.38  Statutes, section 16B.335. 
 12.39  Sec. 8.  METROPOLITAN AIRPORTS COMMISSION
 12.40  The metropolitan airports commission 
 12.41  shall grant $4,000,000 to the city of 
 12.42  Richfield for planning, designing, 
 12.43  constructing, and equipping 
 12.44  recreational facilities needed to 
 12.45  replace facilities lost due to 
 12.46  improvements to Wold Chamberlain 
 12.47  field.  The city must spend the money 
 12.48  in a manner consistent with the 
 12.49  recreation asset replacement study of 
 12.50  the Richfield community services 
 12.51  department. 
 12.52     Sec. 9.  Minnesota Statutes 1996, section 17.117, 
 12.53  subdivision 3, is amended to read: 
 12.54     Subd. 3.  [APPROPRIATIONS.] Up to $40,000,000 $50,000,000 
 12.55  of the balance in the water pollution control revolving fund in 
 12.56  section 446A.07, as determined by the public facilities 
 12.57  authority, is appropriated to the commissioner for the 
 13.1   establishment of this program.  
 13.2      Sec. 10.  Minnesota Statutes 1997 Supplement, section 
 13.3   84.027, subdivision 15, is amended to read: 
 13.4      Subd. 15.  [ELECTRONIC TRANSACTIONS.] (a) The commissioner 
 13.5   may receive an application for, sell, and issue any license, 
 13.6   stamp, permit, registration, or transfer under the jurisdiction 
 13.7   of the commissioner by electronic means, including by 
 13.8   telephone.  Notwithstanding section 97A.472, electronic and 
 13.9   telephone transactions may be made outside of the state.  The 
 13.10  commissioner may: 
 13.11     (1) provide for the electronic transfer of funds generated 
 13.12  by electronic transactions, including by telephone; 
 13.13     (2) assign a license identification number to an applicant 
 13.14  who purchases a hunting or fishing license by electronic means, 
 13.15  to serve as temporary authorization to engage in the licensed 
 13.16  activity until the license is received or expires; 
 13.17     (3) charge and permit agents to charge a fee of individuals 
 13.18  who make electronic transactions, and transactions by telephone, 
 13.19  including a transaction an issuing fee under section 97A.485, 
 13.20  subdivision 6, and a credit card an additional transaction fee 
 13.21  established by the commissioner, not to exceed $3.50 for 
 13.22  electronic telephone transactions; 
 13.23     (4) select up to four volunteer counties, not more than two 
 13.24  in the metropolitan area, to participate in this pilot project 
 13.25  and the counties shall select the participating agents; and 
 13.26     (5) upon completion of a pilot project, implement a 
 13.27  statewide system, and select the participating agents; and 
 13.28     (6) adopt rules to administer the provisions of this 
 13.29  subdivision. 
 13.30     (b) A county shall not collect a commission for the sale of 
 13.31  licenses or permits made by agents selected by the participating 
 13.32  counties under this subdivision. 
 13.33     (c) Establishment of the transaction fee under paragraph 
 13.34  (a), clause (3), is not subject to rulemaking procedures. 
 13.35     Sec. 11.  [85.0156] [MISSISSIPPI WHITEWATER TRAIL.] 
 13.36     Subdivision 1.  [CREATION.] An urban whitewater trail is 
 14.1   created along the Mississippi river in the lower St. Anthony 
 14.2   falls area below the stone arch bridge in Minneapolis.  The 
 14.3   trail must be primarily developed for whitewater rafters, 
 14.4   canoers, and kayakers. 
 14.5      Subd. 2.  [COMMISSIONER'S DUTIES.] (a) The commissioner of 
 14.6   natural resources must coordinate the creation of the whitewater 
 14.7   trail by placing designation signs near and along the river and 
 14.8   must publicize the designation. 
 14.9      (b) In designating the Mississippi whitewater trail, the 
 14.10  commissioner must work with other federal, state, and local 
 14.11  agencies and private businesses and organizations interested in 
 14.12  the trail. 
 14.13     Subd. 3.  [GIFTS; DONATIONS.] The commissioner of natural 
 14.14  resources is authorized to accept, on behalf of a nonprofit 
 14.15  corporation, donations of land or easements in land for the 
 14.16  whitewater trail and may seek and accept money for the trail 
 14.17  from other public and private sources. 
 14.18     Sec. 12.  Minnesota Statutes 1996, section 85.019, 
 14.19  subdivision 4a, is amended to read: 
 14.20     Subd. 4a.  [NATURAL AND SCENIC AREAS.] The commissioner 
 14.21  shall administer a program to provide grants to units of 
 14.22  government and school districts for the acquisition and 
 14.23  betterment of natural and scenic areas such as blufflands, 
 14.24  prairies, shorelands, wetlands, and wooded areas.  A grant may 
 14.25  not exceed 50 percent or $200,000 $500,000, whichever is less, 
 14.26  of the costs of acquisition and betterment of land acquired 
 14.27  under this subdivision. 
 14.28     Sec. 13.  Minnesota Statutes 1996, section 85.019, is 
 14.29  amended by adding a subdivision to read: 
 14.30     Subd. 4b.  [REGIONAL TRAILS.] The commissioner shall 
 14.31  administer a program to provide grants to units of government 
 14.32  for locally funded trails of regional significance.  A grant may 
 14.33  not exceed 50 percent or $250,000, whichever is less, of the 
 14.34  costs to purchase interests in land, develop, or renovate 
 14.35  locally funded trails under this subdivision. 
 14.36     Sec. 14.  Minnesota Statutes 1996, section 103F.725, 
 15.1   subdivision 1a, is amended to read: 
 15.2      Subd. 1a.  [FINANCIAL ASSISTANCE; LOANS.] (a) Up to 
 15.3   $24,000,000 $36,000,000 of the balance in the water pollution 
 15.4   control revolving fund in section 446A.07, as determined by the 
 15.5   public facilities authority shall be appropriated to the 
 15.6   commissioner for the establishment of a clean water partnership 
 15.7   loan program. 
 15.8      (b) The agency may award loans for up to 100 percent of the 
 15.9   costs associated with activities identified by the agency as 
 15.10  best management practices pursuant to section 319 and section 
 15.11  320 of the federal Water Quality Act of 1987, as amended, 
 15.12  including associated administrative costs. 
 15.13     (c) Loans may be used to finance clean water partnership 
 15.14  grant project eligible costs not funded by grant assistance. 
 15.15     (d) The interest rate, at or below market rate, and the 
 15.16  term, not to exceed 20 years, shall be determined by the agency 
 15.17  in consultation with the public facilities authority. 
 15.18     (e) The repayment must be deposited in the water pollution 
 15.19  control revolving fund under section 446A.07. 
 15.20     (f) The local unit of government receiving the loan is 
 15.21  responsible for repayment of the loan. 
 15.22     (g) For the purpose of obtaining a loan from the agency, a 
 15.23  local government unit may provide to the agency its general 
 15.24  obligation note.  All obligations incurred by a local government 
 15.25  unit in obtaining a loan from the agency must be in accordance 
 15.26  with chapter 475, except that so long as the obligations are 
 15.27  issued to evidence a loan from the agency to the local 
 15.28  government unit, an election is not required to authorize the 
 15.29  obligations issued, and the amount of the obligations shall not 
 15.30  be included in determining the net indebtedness of the local 
 15.31  government unit under the provisions of any law or chapter 
 15.32  limiting the indebtedness. 
 15.33     Sec. 15.  Minnesota Statutes 1996, section 116.16, 
 15.34  subdivision 5, is amended to read: 
 15.35     Subd. 5.  [RULES.] (a) The agency shall promulgate 
 15.36  permanent rules for the administration of grants and loans 
 16.1   authorized to be made under the water pollution control program, 
 16.2   which rules, however, shall not be applicable to the issuance of 
 16.3   bonds by the commissioner of finance as provided in section 
 16.4   116.17.  The rules shall contain as a minimum: 
 16.5      (1) procedures for application by municipalities; 
 16.6      (2) conditions for the administration of the grant or loan; 
 16.7      (3) criteria for the ranking of projects in order of 
 16.8   priority for grants or loans, based on factors including the 
 16.9   extent and nature of pollution, technological feasibility, 
 16.10  assurance of proper operation, maintenance and replacement, and 
 16.11  participation in multimunicipal systems; and 
 16.12     (4) such other matters as the agency and the commissioner 
 16.13  find necessary to the proper administration of the grant program.
 16.14     (b) The agency shall award the amount of additional 
 16.15  priority points necessary to place a project in the fundable 
 16.16  range of the intended use plan if the agency determines that the 
 16.17  project would repair a facility that is an imminent threat to 
 16.18  discharge untreated or partially treated sewage to the Boundary 
 16.19  Waters Canoe Area Wilderness if it fails.  
 16.20     (c) For purposes of awarding independent state grants, the 
 16.21  agency may by rule waive the federal 20-year planning 
 16.22  requirement for municipalities with a population of less than 
 16.23  1,500. 
 16.24     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 16.25  116.18, subdivision 3c, is amended to read: 
 16.26     Subd. 3c.  [INDIVIDUAL ON-SITE TREATMENT SYSTEMS AND 
 16.27  ALTERNATIVE DISCHARGING SEWAGE SYSTEMS PROGRAM.] (a) Beginning 
 16.28  in fiscal year 1989, up to ten percent of the money to be 
 16.29  awarded as grants under subdivision 3a in any single fiscal 
 16.30  year, up to a maximum of $1,000,000, may be set aside for the 
 16.31  award of grants by the agency to municipalities to reimburse 
 16.32  owners of individual on-site wastewater treatment systems or 
 16.33  alternative discharging sewage systems for a part of the costs 
 16.34  of upgrading or replacing the systems. 
 16.35     (b) An individual on-site treatment system is a wastewater 
 16.36  treatment system, or part thereof, that uses soil treatment and 
 17.1   disposal technology to treat 5,000 gallons or less of wastewater 
 17.2   per day from dwellings or other establishments. 
 17.3      (c) An alternative discharging sewage system is a system 
 17.4   permitted under section 115.58 that: 
 17.5      (1) serves one or more dwellings and other establishments; 
 17.6      (2) discharges less than 10,000 gallons of water per day; 
 17.7   and 
 17.8      (3) uses any treatment and disposal methods other than 
 17.9   subsurface soil treatment and disposal. 
 17.10     (d) Municipalities may apply yearly for grants of up to 50 
 17.11  percent of the cost of replacing or upgrading individual on-site 
 17.12  treatment systems, including conversion to an alternative 
 17.13  discharging sewage system, within their jurisdiction, up to a 
 17.14  limit of $5,000 per system or per connection to a cluster 
 17.15  system.  Before agency approval of the grant application, a 
 17.16  municipality must certify that:  
 17.17     (1) it has adopted and is enforcing the requirements of 
 17.18  Minnesota Rules governing individual sewage treatment systems; 
 17.19     (2) the existing systems for which application is made do 
 17.20  not conform to those rules, are at least 20 years old, do not 
 17.21  serve seasonal residences, and were not constructed with state 
 17.22  or federal funds; and 
 17.23     (3) the costs requested do not include administrative 
 17.24  costs, costs for improvements or replacements made before the 
 17.25  application is submitted to the agency unless it pertains to the 
 17.26  plan finally adopted, and planning and engineering costs other 
 17.27  than those for the individual site evaluations and system design.
 17.28     (d) (e) The federal and state regulations regarding the 
 17.29  award of state and federal wastewater treatment grants do not 
 17.30  apply to municipalities or systems funded under this 
 17.31  subdivision, except as provided in this subdivision.  
 17.32     (e) (f) The agency shall adopt permanent rules regarding 
 17.33  priorities, distribution of funds, payments, inspections, 
 17.34  procedures for administration of the agency's duties, and other 
 17.35  matters that the agency finds necessary for proper 
 17.36  administration of grants awarded under this subdivision.  
 18.1      Sec. 17.  Minnesota Statutes 1996, section 116.182, 
 18.2   subdivision 1, is amended to read: 
 18.3      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 18.4   section, the terms defined in this subdivision have the meanings 
 18.5   given them. 
 18.6      (b) "Agency" means the pollution control agency. 
 18.7      (c) "Authority" means the public facilities authority 
 18.8   established in section 446A.03. 
 18.9      (d) "Commissioner" means the commissioner of the pollution 
 18.10  control agency. 
 18.11     (e) "Essential project components" means those components 
 18.12  of a wastewater disposal system that are necessary to convey or 
 18.13  treat a municipality's existing wastewater flows and loadings, 
 18.14  and future wastewater flows and loadings based on 50 percent of 
 18.15  the projected residential growth of the municipality for a 
 18.16  20-year period. 
 18.17     (f) "Municipality" means a county, home rule charter or 
 18.18  statutory city, town, the metropolitan council, an Indian tribe 
 18.19  or an authorized Indian tribal organization; or any other 
 18.20  governmental subdivision of the state responsible by law for the 
 18.21  prevention, control, and abatement of water pollution in any 
 18.22  area of the state. 
 18.23     (g) "Outstanding international resource value waters" are 
 18.24  the surface waters of the state in the Lake Superior Basin, 
 18.25  other than Class 7 waters and those waters designated as 
 18.26  outstanding resource value waters. 
 18.27     (h) "Outstanding resource value waters" are those that have 
 18.28  high water quality, wilderness characteristics, unique 
 18.29  scientific or ecological significance, exceptional recreation 
 18.30  value, or other special qualities that warrant special 
 18.31  protection. 
 18.32     Sec. 18.  Minnesota Statutes 1996, section 116.182, is 
 18.33  amended by adding a subdivision to read: 
 18.34     Subd. 3a.  [NOTIFICATION OF OTHER GOVERNMENT UNITS.] (a) In 
 18.35  addition to other applicable statutes or rules that are required 
 18.36  to receive financial assistance consistent with this 
 19.1   subdivision, the commissioner may not approve or certify a 
 19.2   project to the public facilities authority for wastewater 
 19.3   financial assistance unless the requirements in paragraphs (b) 
 19.4   to (g) met: 
 19.5      (b) Prior to the initiation of the public facilities 
 19.6   planning process for a new wastewater treatment system, the 
 19.7   project proposer must give written notice to all municipalities 
 19.8   within ten miles of the proposed project service area, including 
 19.9   the county in which the project is located, the office of 
 19.10  strategic and long-range planning, and the pollution control 
 19.11  agency.  The notice shall state the proposer's intent to begin 
 19.12  the facilities planning process and provide a description of the 
 19.13  need for the proposed project.  The notice also shall request a 
 19.14  response within 30 days of the notice date from all government 
 19.15  units that wish to receive and comment on the future facilities 
 19.16  plan for the proposed project. 
 19.17     (c) During development of the facility plan's analysis of 
 19.18  service alternatives, the project proposer must request 
 19.19  information from all municipalities and sanitary districts which 
 19.20  have existing systems that have current capacity to meet the 
 19.21  proposer's needs or can be upgraded to meet those needs.  At a 
 19.22  minimum, the proposer must notify in writing those 
 19.23  municipalities and sanitary districts whose corporate limits or 
 19.24  boundaries are within three miles of the proposed project's 
 19.25  service area. 
 19.26     (d) Sixty days prior to the municipality's public hearing 
 19.27  on the facilities plan, a copy of the draft facilities plan and 
 19.28  notice of the public hearing on the facilities plan must be 
 19.29  given to the local government units that previously expressed 
 19.30  interest in the proposed project under paragraph (b). 
 19.31     (e) For a proposed project located or proposed to be 
 19.32  located outside the corporate limits of a city, the affected 
 19.33  county has certified to the agency that the proposed project is 
 19.34  consistent with the applicable county comprehensive plan and 
 19.35  zoning and subdivision regulations. 
 19.36     (f) Copies of the notifications required under paragraphs 
 20.1   (b) and (c), as well as the certification from the county and a 
 20.2   summary of the comments received, must be included by the 
 20.3   municipality in the submission of its facilities plan to the 
 20.4   pollution control agency, along with other required items as 
 20.5   specified in the agency's rules. 
 20.6      (g) At any time within the 60-day period specified in 
 20.7   paragraph (d), any city in the state within three miles of a 
 20.8   proposed project located outside the corporate limits of a city 
 20.9   may file a written objection with the pollution control agency.  
 20.10  An objection makes the proposed project ineligible for grant 
 20.11  funding until the city withdraws its objection or the pollution 
 20.12  control agency board certifies that the proposed project is the 
 20.13  only feasible and cost-effective option available for servicing 
 20.14  the proposed area. 
 20.15     (h) This subdivision does not apply to the western Lake 
 20.16  Superior sanitary district or the metropolitan council. 
 20.17     Sec. 19.  Minnesota Statutes 1996, section 446A.072, 
 20.18  subdivision 2, is amended to read: 
 20.19     Subd. 2.  [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental 
 20.20  assistance shall be in the form of zero percent loans, with loan 
 20.21  repayments beginning February 20 or August 20 following the 
 20.22  scheduled date of the project obtaining grants.  If the project 
 20.23  does not meet the operational performance standards established 
 20.24  by the agency within one year after operation of the project has 
 20.25  begun, the grant must be repaid.  Upon receipt of notice from 
 20.26  the agency that the project operational performance standards 
 20.27  have been met, the authority will forgive the scheduled loan 
 20.28  repayments made under this section.  If not forgiven, loan Grant 
 20.29  repayments shall be deferred upon request from the commissioner 
 20.30  of the agency for six-month periods, provided the commissioner 
 20.31  has determined that satisfactory progress is being made to 
 20.32  achieve project performance or is developing or implementing a 
 20.33  corrective action plan. 
 20.34     Sec. 20.  Minnesota Statutes 1996, section 446A.072, 
 20.35  subdivision 4, is amended to read: 
 20.36     Subd. 4.  [FUNDING LEVEL.] (a) The authority shall provide 
 21.1   supplemental assistance for essential project component costs as 
 21.2   certified by the commissioner of the pollution control agency 
 21.3   under section 116.182, subdivision 4.  
 21.4      (b) A municipality may not receive more than $4,000,000 or 
 21.5   $2,000,000 when matched with a United States Department of 
 21.6   Agriculture rural development grant under this section unless 
 21.7   specifically approved by law. 
 21.8      (c) The authority will calculate the grant amount needed 
 21.9   for the essential project component costs by first determining 
 21.10  the amount needed to reduce a municipality's monthly residential 
 21.11  sewer service charge to $25 or to an annual residential sewer 
 21.12  service charge in excess of 1.5 percent of the municipality's 
 21.13  median household income, whichever is less, and then multiplying 
 21.14  that amount by 80 percent to determine the actual award amount 
 21.15  to supplement loans under section 446A.07 or provide up to 
 21.16  one-third of the amount of the grant funding level required by 
 21.17  USDA/RECD for projects listed on the agency's intended use plan. 
 21.18     (d) The authority shall provide supplemental assistance for 
 21.19  up to one-half of an eligible grant under the United States 
 21.20  Department of Agriculture Rural Development Program that will 
 21.21  reduce municipality's annual residential sewer cost to no more 
 21.22  than 1.7 percent of the municipality's median household income 
 21.23  for projects listed on the agency's project priority list, in 
 21.24  priority order.  For municipalities that are not eligible for 
 21.25  United States Department of Agriculture Rural Development 
 21.26  funding for wastewater, the authority shall provide supplemental 
 21.27  assistance for:  (1) essential project component costs 
 21.28  calculated by first determining the amount needed to reduce a 
 21.29  municipality's annual residential sewer costs to 1.5 percent of 
 21.30  the municipality's median household income or $25, whichever is 
 21.31  less, and then multiplying that amount by 80 percent to 
 21.32  determine the actual award amount to supplement loans under 
 21.33  section 446A.07; and (2) up to 50 percent of the incremental 
 21.34  costs specifically identified by the agency as being 
 21.35  attributable to more stringent wastewater standards required to 
 21.36  protect outstanding resource value waters or outstanding 
 22.1   international resource value waters. 
 22.2      (d) In the event that a municipality's monthly residential 
 22.3   sewer service charges average above $50, the authority shall 
 22.4   provide 90 percent of the grant amount needed to reduce the 
 22.5   average monthly sewer service charge to $50, provided the 
 22.6   project is ranked in the top 50 percentile of the agency's 
 22.7   intended use plan. 
 22.8      (e) Notwithstanding paragraphs (b), (c), and (d), a 
 22.9   municipality with an annual median household income, based on 
 22.10  the 1990 federal census, of $40,000 or greater shall not be 
 22.11  eligible for a grant, except for incremental costs specifically 
 22.12  identified by the agency as being attributable to more stringent 
 22.13  wastewater standards required to protect outstanding resource 
 22.14  value waters or outstanding international resource value waters. 
 22.15     (f) The authority shall provide supplemental assistance to 
 22.16  a municipality that would not otherwise qualify for supplemental 
 22.17  assistance if: 
 22.18     (1) the municipality voluntarily accepts a sewer connection 
 22.19  from another governmental unit to serve residential, industrial, 
 22.20  or commercial developments that were completed before March 1, 
 22.21  1996, or are on lots whose plats were recorded before that date; 
 22.22  and 
 22.23     (2) fees charged by the municipality for the connection 
 22.24  must take into account state and federal grants used by the 
 22.25  municipality for the construction of the treatment plant. 
 22.26  The amount of supplemental assistance under this paragraph must 
 22.27  be sufficient to reduce debt service payments under section 
 22.28  446A.07 to an extent equivalent to a zero percent loan in an 
 22.29  amount up to the other governmental unit's project costs 
 22.30  necessary for connection.  Eligibility for supplemental 
 22.31  assistance under this paragraph ends three years after the 
 22.32  agency certifies that the connection has met the operational 
 22.33  performance standards established by the agency. 
 22.34     Sec. 21.  Minnesota Statutes 1996, section 446A.072, 
 22.35  subdivision 7, is amended to read: 
 22.36     Subd. 7.  [LOAN GRANT REPAYMENTS.] All loan grant 
 23.1   repayments received by the authority under subdivision 2 must be 
 23.2   used to provide additional assistance under this section. 
 23.3      Sec. 22.  Minnesota Statutes 1996, section 446A.072, 
 23.4   subdivision 9, is amended to read: 
 23.5      Subd. 9.  [LOAN GRANT LIMITATION.] Supplemental assistance 
 23.6   may not be used to reduce the sewer service charges of a 
 23.7   significant wastewater contributor, or a single user that has 
 23.8   caused the need for the project or whose current or projected 
 23.9   flow and load exceed one-half of the current wastewater 
 23.10  treatment plant's capacity, unless the applicant can demonstrate 
 23.11  to the authority that the significant wastewater contributor 
 23.12  cannot pay its fair share.  Funding will not be provided for 
 23.13  projects that are not qualified for assistance or that would 
 23.14  violate the state's constitution or laws regarding the use of 
 23.15  funds appropriated for the program. 
 23.16     Sec. 23.  Minnesota Statutes 1996, section 446A.072, 
 23.17  subdivision 12, is amended to read: 
 23.18     Subd. 12.  [SYSTEM REPLACEMENT FUND.] Each recipient of 
 23.19  assistance under this section shall establish a system 
 23.20  replacement fund setting aside a minimum of $.10 per 1,000 
 23.21  gallons of flow for major rehabilitation, expansion, or 
 23.22  replacement of the treatment plant at the end of its useful 
 23.23  life.  Money must remain in the account, for the life of the 
 23.24  loan associated with the supplemental assistance under this 
 23.25  section, unless use of the fund is approved by the authority for 
 23.26  major rehabilitation, expansion, or replacement of the treatment 
 23.27  plant.  Failure A municipality that fails to maintain the fund 
 23.28  will cancel the loan forgiveness must repay the grant as 
 23.29  provided under subdivision 2. 
 23.30     Sec. 24.  [REPEALER.] 
 23.31     Minnesota Statutes 1997 Supplement, section 446A.072, 
 23.32  subdivision 4a, is repealed. 
 23.33     Sec. 25.  [EFFECTIVE DATE.] 
 23.34     Sections 1 to 24 are effective the day following final 
 23.35  enactment.