1.1                                        A bill for an act&#10;1.2     relating to the environment; modifying provisions for cost-sharing contracts for &#10;1.3     erosion control and water management; creating the Clean Water Legacy Act; &#10;1.4     providing authority, direction, and funding to achieve and maintain water quality &#10;1.5     standards according to section 303(d) of the federal Clean Water Act; providing &#10;1.6     for nutrient loading offset; requiring a report on phosphorus discharge rules;&#10;1.7     amending Minnesota Statutes 2004, sections 103C.501, subdivision 5; 115.03, &#10;1.8     by adding a subdivision; 446A.051; proposing coding for new law as Minnesota &#10;1.9     Statutes, chapter 114D.&#10;1.10     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:&#10;&#10;<a id="go.0.1.0"></a>1.11        Section 1. Minnesota Statutes 2004, section 103C.501, subdivision 5, is amended to &#10;1.12    read:&#10;1.13        Subd. 5. <b>Contracts by districts.</b> (a) A district board may contract on a cost-share &#10;1.14    basis to furnish financial aid to a land occupier or to a state agency for permanent systems &#10;1.15    for erosion or sedimentation control or water quality improvement that are consistent with &#10;1.16    the district's comprehensive and annual work plans.&#10;1.17    (b) The duration of the contract <del>may</del><ins> must, at a minimum,</ins> be the time required to &#10;1.18    complete the planned systems. A contract must specify that the land occupier is liable &#10;1.19    for monetary damages<del>, not to exceed the</del><ins> and penalties in an</ins> amount <del>of</del><ins> up to 150 percent </ins>&#10;1.20    <ins>of the</ins> financial assistance received from the district, for failure to complete the systems &#10;1.21    or practices in a timely manner or maintain the systems or practices as specified in the &#10;1.22    contract.&#10;1.23    (c) A contract may provide for cooperation or funding with federal agencies. A land &#10;1.24    occupier or state agency may provide the cost-sharing portion of the contract through &#10;1.25    services in kind.&#10;2.1     (d) The state board or the district board may not furnish any financial aid for &#10;2.2     practices designed only to increase land productivity.&#10;2.3     <ins>(e) When a district board determines that long-term  maintenance of a system or </ins>&#10;2.4     <ins>practice is desirable, the board may  require that such maintenance be made a covenant </ins>&#10;2.5     <ins>upon the land for the effective life of the practice.  A covenant under this  subdivision shall </ins>&#10;2.6     <ins>be construed in the same manner as a  conservation restriction under section 84.65.</ins>&#10;&#10;<a id="go.0.2.0"></a>2.7         Sec. 2. <ins><b>[114D.05] CITATION.</b></ins>&#10;2.8     <ins>This chapter may be cited as the "Clean Water Legacy Act."</ins>&#10;&#10;<a id="go.0.3.0"></a>2.9         Sec. 3. <ins><b>[114D.10] LEGISLATIVE PURPOSE AND FINDINGS.</b></ins>&#10;2.10        <ins>Subdivision 1.</ins> <ins><b>Purpose.</b></ins> <ins>The purpose of the Clean Water  Legacy Act is to protect, </ins>&#10;2.11    <ins>restore, and preserve the quality of  Minnesota's surface waters by providing authority, </ins>&#10;2.12    <ins>direction,  and resources to achieve and maintain water quality standards for surface waters </ins>&#10;2.13    <ins>as required by section 303(d) of the federal Clean Water Act, United States Code, title 33, </ins>&#10;2.14    <ins>section 1313(d), and applicable federal regulations.</ins>&#10;2.15        <ins>Subd. 2.</ins> <ins><b>Findings.</b></ins> <ins>The legislature finds that: </ins>&#10;2.16    <ins>(1) there is a close link between protecting, restoring, and preserving the quality of </ins>&#10;2.17    <ins>Minnesota's surface waters and the ability to develop the state's economy, enhance its </ins>&#10;2.18    <ins>quality of life, and protect its human and natural resources; </ins>&#10;2.19    <ins>(2) achieving the state's water quality goals will require long-term commitment and </ins>&#10;2.20    <ins>cooperation by all state and local agencies, and other public and private organizations </ins>&#10;2.21    <ins>and individuals, with responsibility and authority for water management, planning, and </ins>&#10;2.22    <ins>protection; and </ins>&#10;2.23    <ins>(3) all persons and organizations whose activities affect the quality of waters, </ins>&#10;2.24    <ins>including point and nonpoint sources of pollution, have a responsibility to participate in </ins>&#10;2.25    <ins>and support efforts to achieve the state's water quality goals. </ins>&#10;&#10;<a id="go.0.4.0"></a>2.26        Sec. 4. <ins><b>[114D.15] DEFINITIONS.</b></ins>&#10;2.27        <ins>Subdivision 1.</ins> <ins><b>Application.</b></ins> <ins>The definitions provided in this section apply to the </ins>&#10;2.28    <ins>terms used in this chapter.</ins>&#10;2.29        <ins>Subd. 2.</ins> <ins><b>Citizen monitoring.</b></ins> <ins>"Citizen monitoring" means monitoring of surface </ins>&#10;2.30    <ins>water quality by individuals and nongovernmental organizations that is consistent with </ins>&#10;2.31    <ins>section 115.06, subdivision 4, and Pollution Control Agency guidance on monitoring </ins>&#10;2.32    <ins>procedures, quality assurance protocols, and data  management.</ins>&#10;3.1         <ins>Subd. 3.</ins> <ins><b>Clean Water Council.</b></ins> <ins>"Clean Water Council" or "council" means the </ins>&#10;3.2     <ins>Clean Water Council created pursuant to section 114D.30, subdivision 1.</ins>&#10;3.3         <ins>Subd. 4.</ins> <ins><b>Federal TMDL requirements.</b></ins> <ins>"Federal TMDL  requirements" means the </ins>&#10;3.4     <ins>requirements of section 303(d) of the Clean Water Act, United States Code, title 33, </ins>&#10;3.5     <ins>section 1313(d), and associated regulations and guidance.</ins>&#10;3.6         <ins>Subd. 5.</ins> <ins><b>Impaired water.</b></ins> <ins>"Impaired water" means surface water that does not </ins>&#10;3.7     <ins>meet applicable water quality standards.</ins>&#10;3.8         <ins>Subd. 6.</ins> <ins><b>Public agencies.</b></ins> <ins>"Public agencies" means all state agencies, political </ins>&#10;3.9     <ins>subdivisions, joint powers organizations, and special purpose units of government with </ins>&#10;3.10    <ins>authority, responsibility, or expertise in protecting, restoring, or preserving the quality of </ins>&#10;3.11    <ins>surface waters, managing or planning for surface waters and related lands, or financing </ins>&#10;3.12    <ins>waters-related projects. Public agencies includes the University of Minnesota and other </ins>&#10;3.13    <ins>public education institutions. </ins>&#10;3.14        <ins>Subd. 7.</ins> <ins><b>Restoration.</b></ins> <ins>"Restoration" means actions, including effectiveness </ins>&#10;3.15    <ins>monitoring, that are taken to achieve and maintain water quality standards for impaired </ins>&#10;3.16    <ins>waters in accordance with a TMDL that has been approved by the United States </ins>&#10;3.17    <ins>Environmental Protection Agency under federal TMDL requirements. </ins>&#10;3.18        <ins>Subd. 8.</ins> <ins><b>Surface waters.</b></ins> <ins>"Surface waters" means waters of the state as defined </ins>&#10;3.19    <ins>in section 115.01, subdivision 22, excluding groundwater as defined in section 115.01, </ins>&#10;3.20    <ins>subdivision  6.</ins>&#10;3.21        <ins>Subd. 9.</ins> <ins><b>Third-party TMDL.</b></ins> <ins>"Third-party TMDL" means a TMDL by the </ins>&#10;3.22    <ins>Pollution Control Agency that is developed in whole or in part by a qualified public </ins>&#10;3.23    <ins>agency other than the Pollution Control Agency consistent with the goals, policies, and </ins>&#10;3.24    <ins>priorities in section 114D.20. </ins>&#10;3.25        <ins>Subd. 10.</ins> <ins><b>Total maximum daily load or TMDL.</b></ins> <ins>"Total maximum daily load" or </ins>&#10;3.26    <ins>"TMDL" means a scientific study that contains a calculation of the maximum amount of a </ins>&#10;3.27    <ins>pollutant that may be introduced into a surface water and still ensure that applicable </ins>&#10;3.28    <ins>water quality standards for that water are restored and maintained. A TMDL also is </ins>&#10;3.29    <ins>the sum of the pollutant load  allocations for all sources of the pollutant, including a </ins>&#10;3.30    <ins>wasteload allocation for point sources, a load allocation for  nonpoint sources and natural </ins>&#10;3.31    <ins>background, an allocation for future growth of point and nonpoint sources, and a margin </ins>&#10;3.32    <ins>of safety to account for uncertainty about the relationship between pollutant loads and </ins>&#10;3.33    <ins>the quality of the receiving surface water. "Natural background" means characteristics of </ins>&#10;3.34    <ins>the water body resulting from the multiplicity of factors in nature, including climate and </ins>&#10;3.35    <ins>ecosystem dynamics, that affect the physical, chemical, or biological conditions in a water </ins>&#10;4.1     <ins>body, but does not include measurable and distinguishable pollution that is  attributable to </ins>&#10;4.2     <ins>human activity or influence. A TMDL must take into account seasonal variations. </ins>&#10;4.3         <ins>Subd. 11.</ins> <ins><b>TMDL implementation plan.</b></ins> <ins>"TMDL implementation plan" means a </ins>&#10;4.4     <ins>document detailing restoration activities needed to meet the approved TMDL's pollutant </ins>&#10;4.5     <ins>load allocations for point and nonpoint sources.</ins>&#10;4.6         <ins>Subd. 12.</ins> <ins><b>Water quality standards.</b></ins> <ins>"Water quality standards" for Minnesota </ins>&#10;4.7     <ins>surface waters are found in Minnesota Rules, chapters 7050 and 7052.</ins>&#10;&#10;<a id="go.0.5.0"></a>4.8         Sec. 5. <ins><b>[114D.20] IMPLEMENTATION; COORDINATION; GOALS; </b></ins>&#10;4.9     <ins><b>POLICIES; AND PRIORITIES.</b></ins>&#10;4.10        <ins>Subdivision 1.</ins> <ins><b>Coordination and cooperation.</b></ins> <ins>In implementing this chapter, </ins>&#10;4.11    <ins>public agencies and private entities shall take into consideration the relevant provisions of </ins>&#10;4.12    <ins>local and other applicable water management, conservation, land use, land management, </ins>&#10;4.13    <ins>and development plans and programs. Public  agencies with authority for local water </ins>&#10;4.14    <ins>management, conservation, land use, land management, and development plans shall </ins>&#10;4.15    <ins>take into consideration the manner in which their plans  affect the implementation of </ins>&#10;4.16    <ins>this chapter. Public agencies shall identify opportunities to participate and assist in the </ins>&#10;4.17    <ins>successful implementation of this chapter, including the funding or technical assistance </ins>&#10;4.18    <ins>needs, if any, that may be necessary. In implementing this chapter, public agencies shall </ins>&#10;4.19    <ins>endeavor to engage the cooperation of organizations and individuals whose activities </ins>&#10;4.20    <ins>affect the quality of surface waters, including point and nonpoint sources of pollution, and </ins>&#10;4.21    <ins>who have authority and responsibility for water management, planning, and protection.   To </ins>&#10;4.22    <ins>the extent practicable, public agencies shall endeavor to enter into formal and informal </ins>&#10;4.23    <ins>agreements and arrangements with federal agencies and departments to jointly utilize </ins>&#10;4.24    <ins>staff and educational, technical, and financial resources to deliver programs or conduct </ins>&#10;4.25    <ins>activities to achieve the intent of this chapter, including efforts under the federal Clean </ins>&#10;4.26    <ins>Water Act and other federal farm and soil and water conservation programs. Nothing in </ins>&#10;4.27    <ins>this chapter affects the application of silvicultural exemptions under any federal, state, or </ins>&#10;4.28    <ins>local law or requires silvicultural practices more stringent than those recommended in </ins>&#10;4.29    <ins>the timber harvesting and forest management guidelines adopted by the Minnesota Forest </ins>&#10;4.30    <ins>Resources Council under section 89A.05.</ins>&#10;4.31        <ins>Subd. 2.</ins> <ins><b>Goals for implementation.</b></ins> <ins>The following goals must guide the </ins>&#10;4.32    <ins>implementation of this chapter: </ins>&#10;4.33    <ins>(1) to identify impaired waters in accordance with federal TMDL requirements </ins>&#10;4.34    <ins>within ten years after the effective date of this section and thereafter to ensure continuing </ins>&#10;4.35    <ins>evaluation of surface waters for impairments; </ins>&#10;5.1     <ins>(2) to submit TMDL's to the United States Environmental Protection Agency for all </ins>&#10;5.2     <ins>impaired waters in a timely manner in accordance with federal TMDL requirements; </ins>&#10;5.3     <ins>(3) to set a reasonable time for implementing restoration of each identified impaired </ins>&#10;5.4     <ins>water; </ins>&#10;5.5     <ins>(4) to provide assistance and incentives to prevent waters from becoming impaired </ins>&#10;5.6     <ins>and to improve the quality of waters which are listed as impaired but have no approved </ins>&#10;5.7     <ins>TMDL addressing the impairment; </ins>&#10;5.8     <ins>(5) to promptly seek the delisting of waters from the impaired waters list when those </ins>&#10;5.9     <ins>waters are shown to achieve the designated uses applicable to the waters; and </ins>&#10;5.10    <ins>(6) to achieve compliance with federal Clean Water Act requirements in Minnesota.</ins>&#10;5.11        <ins>Subd. 3.</ins> <ins><b>Implementation policies.</b></ins> <ins>The following policies must guide the </ins>&#10;5.12    <ins>implementation of this chapter: </ins>&#10;5.13    <ins>(1) develop regional and watershed TMDL's and TMDL implementation plans, and </ins>&#10;5.14    <ins>TMDL's and TMDL implementation plans for multiple pollutants, where reasonable and </ins>&#10;5.15    <ins>feasible; </ins>&#10;5.16    <ins>(2) maximize use of available organizational, technical, and financial resources to </ins>&#10;5.17    <ins>perform sampling, monitoring, and other activities to identify impaired waters, including </ins>&#10;5.18    <ins>use of citizen monitoring and citizen monitoring data used by the Pollution Control </ins>&#10;5.19    <ins>Agency in assessing water quality must meet the requirements in Appendix D of the </ins>&#10;5.20    <ins>Volunteer Surface Water Monitoring Guide, Minnesota Pollution Control Agency (2003); </ins>&#10;5.21    <ins>(3) maximize opportunities for restoration of impaired waters, by prioritizing and </ins>&#10;5.22    <ins>targeting of available programmatic, financial, and technical resources and by providing </ins>&#10;5.23    <ins>additional state resources to complement and leverage available resources; </ins>&#10;5.24    <ins>(4) use existing regulatory authorities to achieve restoration for point and nonpoint </ins>&#10;5.25    <ins>sources of pollution where applicable, and promote the development and use of effective </ins>&#10;5.26    <ins>nonregulatory measures to address pollution sources for which regulations are not </ins>&#10;5.27    <ins>applicable; </ins>&#10;5.28    <ins>(5) use restoration methods that have a demonstrated effectiveness in reducing </ins>&#10;5.29    <ins>impairments and provide the greatest long-term positive impact on water quality protection </ins>&#10;5.30    <ins>and improvement and related conservation benefits while incorporating innovative </ins>&#10;5.31    <ins>approaches on a case-by-case basis; </ins>&#10;5.32    <ins>(6) identify for the legislature any innovative approaches that may strengthen or </ins>&#10;5.33    <ins>complement existing programs; </ins>&#10;5.34    <ins>(7) identify and encourage implementation of measures to prevent waters from </ins>&#10;5.35    <ins>becoming impaired and to improve the quality of waters that are listed as impaired but </ins>&#10;5.36    <ins>have no approved TMDL addressing the impairment using the best available data and </ins>&#10;6.1     <ins>technology, and establish and report outcome-based performance measures that monitor </ins>&#10;6.2     <ins>the progress and effectiveness of protection and restoration measures; and</ins>&#10;6.3     <ins>(8) monitor and enforce cost-sharing contracts and impose monetary damages in an </ins>&#10;6.4     <ins>amount up to 150 percent of the financial assistance received for failure to comply. </ins>&#10;6.5         <ins>Subd. 4.</ins> <ins><b>Priorities for identifying impaired waters.</b></ins> <ins>The Pollution Control </ins>&#10;6.6     <ins>Agency, in accordance with federal TMDL requirements, shall set priorities for identifying </ins>&#10;6.7     <ins>impaired waters, giving consideration to: </ins>&#10;6.8     <ins>(1) waters where impairments would pose the greatest potential risk to human or </ins>&#10;6.9     <ins>aquatic health; and </ins>&#10;6.10    <ins>(2) waters where data developed through public agency or citizen monitoring or </ins>&#10;6.11    <ins>other means, provides scientific evidence that an impaired condition exists. </ins>&#10;6.12        <ins>Subd. 5.</ins> <ins><b>Priorities for preparation of TMDL's.</b></ins> <ins>The Clean Water Council shall </ins>&#10;6.13    <ins>recommend priorities for scheduling and preparing TMDL's and TMDL implementation </ins>&#10;6.14    <ins>plans, taking into account the severity of the impairment, the designated uses of those </ins>&#10;6.15    <ins>waters, and other applicable federal TMDL requirements. In recommending priorities, the </ins>&#10;6.16    <ins>council shall also give consideration to waters and watersheds: </ins>&#10;6.17    <ins>(1) with impairments that pose the greatest potential risk to human health; </ins>&#10;6.18    <ins>(2) with impairments that pose the greatest potential risk to threatened or endangered </ins>&#10;6.19    <ins>species; </ins>&#10;6.20    <ins>(3) with impairments that pose the greatest potential risk to aquatic health; </ins>&#10;6.21    <ins>(4) where other public agencies and participating organizations and individuals, </ins>&#10;6.22    <ins>especially local, basinwide, watershed, or regional agencies or organizations, have </ins>&#10;6.23    <ins>demonstrated readiness to assist in carrying out the responsibilities, including availability </ins>&#10;6.24    <ins>and organization of human, technical, and financial resources necessary to undertake </ins>&#10;6.25    <ins>the work; and </ins>&#10;6.26    <ins>(5) where there is demonstrated coordination and cooperation among cities, </ins>&#10;6.27    <ins>counties, watershed districts, and soil and water conservation districts in planning and </ins>&#10;6.28    <ins>implementation of activities that will assist in carrying out the responsibilities. </ins>&#10;6.29        <ins>Subd. 6.</ins> <ins><b>Priorities for restoration of impaired waters.</b></ins> <ins>In implementing </ins>&#10;6.30    <ins>restoration of impaired waters, in addition to the priority considerations in subdivision 5, </ins>&#10;6.31    <ins>the Clean Water Council shall give priority in its recommendations for restoration funding </ins>&#10;6.32    <ins>from the clean water legacy account to restoration projects that: </ins>&#10;6.33    <ins>(1) coordinate with and utilize existing local authorities and infrastructure for </ins>&#10;6.34    <ins>implementation; </ins>&#10;6.35    <ins>(2) can be implemented in whole or in part by providing  support for existing or </ins>&#10;6.36    <ins>ongoing restoration efforts; </ins>&#10;7.1     <ins>(3) most effectively leverage other sources of restoration funding, including federal, </ins>&#10;7.2     <ins>state, local, and private sources of funds; </ins>&#10;7.3     <ins>(4) show a high potential for early restoration and delisting based upon scientific </ins>&#10;7.4     <ins>data developed through public agency or citizen monitoring or other means; and</ins>&#10;7.5     <ins>(5) show a high potential for long-term water quality and related conservation </ins>&#10;7.6     <ins>benefits.</ins>&#10;7.7         <ins>Subd. 7.</ins> <ins><b>Priorities for funding prevention actions.</b></ins> <ins>The Clean Water Council </ins>&#10;7.8     <ins>shall apply the priorities applicable under subdivision 6, as far as practicable, when </ins>&#10;7.9     <ins>recommending priorities for funding actions to prevent waters from becoming impaired </ins>&#10;7.10    <ins>and to improve the quality of waters that are listed as impaired but have no approved </ins>&#10;7.11    <ins>TMDL. </ins>&#10;&#10;<a id="go.0.6.0"></a>7.12        Sec. 6. <ins><b>[114D.25] ADMINISTRATION; POLLUTION CONTROL AGENCY.</b></ins>&#10;7.13        <ins>Subdivision 1.</ins> <ins><b>General duties and authorities.</b></ins> <ins>(a) The Pollution Control Agency, </ins>&#10;7.14    <ins>in accordance with federal TMDL requirements, shall: </ins>&#10;7.15    <ins>(1) identify impaired waters and propose a list of the waters for review and approval </ins>&#10;7.16    <ins>by the United States Environmental Protection Agency;</ins>&#10;7.17    <ins>(2) develop and approve TMDL's for listed impaired waters and submit the approved </ins>&#10;7.18    <ins>TMDL's to the United State Environmental Protection Agency for final approval; and</ins>&#10;7.19    <ins>(3) propose to delist waters from the Environmental Protection Agency impaired </ins>&#10;7.20    <ins>waters list.</ins>&#10;7.21    <ins>(b) A TMDL must include a statement of the facts and scientific data supporting the </ins>&#10;7.22    <ins>TMDL and a list of potential implementation options, including a range of estimates of </ins>&#10;7.23    <ins>the cost of implementation and individual wasteload data for any point sources addressed </ins>&#10;7.24    <ins>by the TMDL.</ins>&#10;7.25    <ins>(c) The implementation information need not be sent to the United States </ins>&#10;7.26    <ins>Environmental Protection Agency for review and approval.</ins>&#10;7.27        <ins>Subd. 2.</ins> <ins><b>Administrative procedures for TMDL approval.</b></ins> <ins>The approval of a </ins>&#10;7.28    <ins>TMDL by the Pollution Control Agency is a final decision of the agency for purposes of </ins>&#10;7.29    <ins>section 115.05, and is subject to the contested case procedures of sections 14.57 to 14.62 in </ins>&#10;7.30    <ins>accordance with agency procedural rules.  The agency shall not submit an approved TMDL </ins>&#10;7.31    <ins>to the United States Environmental Protection Agency until the time for commencing </ins>&#10;7.32    <ins>judicial review has run or the judicial review process has been completed. A TMDL is not </ins>&#10;7.33    <ins>subject to the  rulemaking requirements of chapter 14, including section 14.386.</ins>&#10;7.34        <ins>Subd. 3.</ins> <ins><b>TMDL submittal requirement.</b></ins> <ins>Before submitting a TMDL to the United </ins>&#10;7.35    <ins>States Environmental Protection Agency, the Pollution Control Agency shall comply with </ins>&#10;8.1     <ins>the notice and procedure requirements of this section.  If a contested case proceeding is not </ins>&#10;8.2     <ins>required for a proposed TMDL, the agency may submit the TMDL to the United States </ins>&#10;8.3     <ins>Environmental Protection Agency no earlier than 30 days after the notice required in </ins>&#10;8.4     <ins>subdivision 4. If a contested case proceeding is required for a TMDL, the TMDL may be </ins>&#10;8.5     <ins>submitted to the United States Environmental Protection Agency after the contested case </ins>&#10;8.6     <ins>proceeding and appeal process is completed.</ins>&#10;8.7         <ins>Subd. 4.</ins> <ins><b>TMDL notice; contents.</b></ins> <ins>The Pollution Control Agency shall give notice </ins>&#10;8.8     <ins>of its intention to submit a TMDL to the United States Environmental Protection Agency. </ins>&#10;8.9     <ins>The notice must be given by publication in the State Register and by United States mail to </ins>&#10;8.10    <ins>persons who have registered their names with the agency.  The notice must include either a </ins>&#10;8.11    <ins>copy of the proposed TMDL or an easily readable and understandable description of its </ins>&#10;8.12    <ins>nature and effect and an announcement of how free access to the proposed TMDL can </ins>&#10;8.13    <ins>be obtained.  In addition, the agency shall make reasonable efforts to notify persons or </ins>&#10;8.14    <ins>classes of persons who may be significantly affected by the TMDL by giving notice of </ins>&#10;8.15    <ins>its intention in newsletters, newspapers, or other publications, or through other means of </ins>&#10;8.16    <ins>communication.  The notice must include a statement informing the public: </ins>&#10;8.17    <ins>(1) that the public has 30 days in which to submit comment in support of or in </ins>&#10;8.18    <ins>opposition to the proposed TMDL and that comment is encouraged; </ins>&#10;8.19    <ins>(2) that each comment should identify the portion of the proposed TMDL addressed, </ins>&#10;8.20    <ins>the reason for the comment, and any change proposed; </ins>&#10;8.21    <ins>(3) of the manner in which persons must request a contested case proceeding on </ins>&#10;8.22    <ins>the proposed TMDL; </ins>&#10;8.23    <ins>(4) that the proposed TMDL may be modified if the modifications are supported </ins>&#10;8.24    <ins>by the data and facts; and </ins>&#10;8.25    <ins>(5) the date on which the 30-day comment period ends. </ins>&#10;8.26        <ins>Subd. 5.</ins> <ins><b>Third-party TMDL development.</b></ins> <ins>The Pollution Control Agency may </ins>&#10;8.27    <ins>enter into agreements with any qualified public agency setting forth the terms and </ins>&#10;8.28    <ins>conditions under which that agency is authorized to develop a third-party TMDL. In </ins>&#10;8.29    <ins>determining whether the public agency is qualified to develop a third-party TMDL, the </ins>&#10;8.30    <ins>Pollution Control Agency shall consider  the technical and administrative qualifications of </ins>&#10;8.31    <ins>the public agency, cost,  and shall avoid any potential organizational conflict of interest, </ins>&#10;8.32    <ins>as defined in section 16C.02, subdivision 10a, of the public agency with respect to the </ins>&#10;8.33    <ins>development of the third-party TMDL.  A third-party TMDL is subject to modification </ins>&#10;8.34    <ins>and approval by the Pollution Control Agency, and must be approved by the Pollution </ins>&#10;8.35    <ins>Control Agency before it is submitted to the  United States Environmental Protection </ins>&#10;8.36    <ins>Agency.  The Pollution Control Agency shall only consider authorizing the development </ins>&#10;9.1     <ins>of third-party TMDL's consistent with the goals, policies, and priorities determined </ins>&#10;9.2     <ins>under section 114D.20.</ins>&#10;&#10;<a id="go.0.7.0"></a>9.3         Sec. 7. <ins><b>[114D.30] CLEAN WATER COUNCIL.</b></ins>&#10;9.4         <ins>Subdivision 1.</ins> <ins><b>Creation; duties.</b></ins> <ins>A Clean Water Council is created to advise the </ins>&#10;9.5     <ins>Pollution Control Agency and other implementing public agencies on the administration </ins>&#10;9.6     <ins>and implementation of this chapter, and foster coordination and cooperation as described </ins>&#10;9.7     <ins>in section 114D.20, subdivision 1.  The council may also advise on the development </ins>&#10;9.8     <ins>of appropriate processes for expert scientific review as described in section 114D.35, </ins>&#10;9.9     <ins>subdivision 2.  The Pollution Control Agency shall provide administrative support for the </ins>&#10;9.10    <ins>council with the support of other member agencies.  The members of the council shall </ins>&#10;9.11    <ins>elect a chair from the nonagency members of the council.</ins>&#10;9.12        <ins>Subd. 2.</ins> <ins><b>Membership; appointment.</b></ins> <ins>The governor must appoint the members of </ins>&#10;9.13    <ins>the council. The governor must appoint one person from each of the following agencies: </ins>&#10;9.14    <ins>the Department of Natural Resources, the Department of Agriculture, the Pollution </ins>&#10;9.15    <ins>Control Agency, and the Board of Water and Soil Resources. Agency members serve as </ins>&#10;9.16    <ins>nonvoting members of the council. The governor must appoint 18 additional nonagency </ins>&#10;9.17    <ins>members of the council as follows: </ins>&#10;9.18    <ins>(1) two members representing statewide farm organizations; </ins>&#10;9.19    <ins>(2) two members representing business organizations; </ins>&#10;9.20    <ins>(3) two members representing environmental organizations; </ins>&#10;9.21    <ins>(4) one member representing soil and water conservation districts; </ins>&#10;9.22    <ins>(5) one member representing watershed districts; </ins>&#10;9.23    <ins>(6) one member representing nonprofit organizations focused on improvement of </ins>&#10;9.24    <ins>Minnesota lakes or streams; </ins>&#10;9.25    <ins>(7) two members representing organizations of county governments; </ins>&#10;9.26    <ins>(8) two members representing organizations of city governments; </ins>&#10;9.27    <ins>(9) one member representing the Metropolitan Council established under section </ins>&#10;9.28    <ins>473.123;</ins>&#10;9.29    <ins>(10) one member representing an organization of township governments;</ins>&#10;9.30    <ins>(11) one member representing the interests of tribal governments; and</ins>&#10;9.31    <ins>(12) two members representing statewide hunting organizations.</ins>&#10;9.32    <ins>Members appointed under clauses (1) to (12) must not be registered lobbyists. In making </ins>&#10;9.33    <ins>appointments, the governor must attempt to provide for geographic balance.</ins>&#10;9.34        <ins>Subd. 3.</ins> <ins><b>Terms; compensation; removal.</b></ins> <ins>The initial terms of members </ins>&#10;9.35    <ins>representing state agencies and the Metropolitan Council expire on the first Monday in </ins>&#10;10.1    <ins>January, 2007. Thereafter, the terms of members representing the state agencies and the </ins>&#10;10.2    <ins>Metropolitan Council are four years and are coterminous with the governor. The terms </ins>&#10;10.3    <ins>of other members of the council shall be as provided in section 15.059, subdivision 2. </ins>&#10;10.4    <ins>Members may serve until their successors are appointed and qualify. Compensation and </ins>&#10;10.5    <ins>removal of council members is as provided in section 15.059, subdivisions 3 and 4. A </ins>&#10;10.6    <ins>vacancy on the council may be filled by the appointing authority provided in  subdivision 1 </ins>&#10;10.7    <ins>for the remainder of the unexpired term.</ins>&#10;10.8        <ins>Subd. 4.</ins> <ins><b>Implementation plan.</b></ins> <ins>The Clean Water Council shall prepare a plan for </ins>&#10;10.9    <ins>implementation of this chapter. The plan shall address general procedures and timeframes </ins>&#10;10.10   <ins>for implementing this chapter, and shall include a more specific implementation work plan </ins>&#10;10.11   <ins>for the next fiscal biennium and a framework for setting priorities to address impaired </ins>&#10;10.12   <ins>waters consistent with section 114D.45, subdivisions 2 to 7. The council shall issue the </ins>&#10;10.13   <ins>first implementation plan under this subdivision by December 1, 2006, and shall issue a </ins>&#10;10.14   <ins>revised work plan by December 1 of each even-numbered year thereafter.</ins>&#10;10.15       <ins>Subd. 5.</ins> <ins><b>Recommendations on appropriation of funds.</b></ins> <ins>The  Clean Water Council </ins>&#10;10.16   <ins>shall recommend to the governor the manner in which money from the clean water </ins>&#10;10.17   <ins>legacy account should be appropriated for the purposes identified in section 114D.45, </ins>&#10;10.18   <ins>subdivision 3. The council's nonbinding recommendations must be consistent with the </ins>&#10;10.19   <ins>purposes, policies, goals, and priorities in sections 114D.05 to 114D.35. The council </ins>&#10;10.20   <ins>must recommend methods of ensuring that awards of grants, loans,  or other funds from </ins>&#10;10.21   <ins>the clean water legacy account specify the outcomes to be achieved as a result of the </ins>&#10;10.22   <ins>funding, and specify standards to hold the recipient accountable for achieving the desired </ins>&#10;10.23   <ins>outcomes. Expenditures from the account are subject to appropriation by the legislature.</ins>&#10;10.24       <ins>Subd. 6.</ins> <ins><b>Biennial report to legislature.</b></ins> <ins>By December 1 of each even-numbered </ins>&#10;10.25   <ins>year, the council shall submit a report to the legislature on the activities for which money </ins>&#10;10.26   <ins>has been or will be spent for the current biennium, the activities for which money is </ins>&#10;10.27   <ins>recommended to be spent in the next biennium, and the impact on economic development </ins>&#10;10.28   <ins>of the implementation of the impaired waters program. The report due on December </ins>&#10;10.29   <ins>1, 2014, must include an evaluation of the progress made through June 30, 2014, in </ins>&#10;10.30   <ins>implementing this chapter, the need for funding of future implementation of those </ins>&#10;10.31   <ins>sections, and recommendations for the sources of funding. </ins>&#10;&#10;<a id="go.0.8.0"></a>10.32       Sec. 8. <ins><b>[114D.35] PUBLIC AND STAKEHOLDER PARTICIPATION; </b></ins>&#10;10.33   <ins><b>SCIENTIFIC REVIEW; EDUCATION.</b></ins>&#10;10.34       <ins>Subdivision 1.</ins> <ins><b>Public and stakeholder participation.</b></ins> <ins>Public agencies and private </ins>&#10;10.35   <ins>entities involved in the implementation of this chapter shall encourage participation by </ins>&#10;11.1    <ins>the public and stakeholders, including local citizens, landowners and managers, and </ins>&#10;11.2    <ins>public and private organizations, in the identification of impaired waters, in developing </ins>&#10;11.3    <ins>TMDL's, and in planning, priority setting, and implementing restoration of impaired </ins>&#10;11.4    <ins>waters. In particular, the Pollution Control Agency shall make reasonable efforts to </ins>&#10;11.5    <ins>provide timely information to the public and to stakeholders about impaired waters that </ins>&#10;11.6    <ins>have been identified by the agency. The agency shall seek broad and early public and </ins>&#10;11.7    <ins>stakeholder participation in scoping the activities necessary to develop a TMDL, including </ins>&#10;11.8    <ins>the scientific  models, methods, and approaches to be used in TMDL development, and to </ins>&#10;11.9    <ins>implement restoration pursuant to section 114D.15, subdivision 7.</ins>&#10;11.10       <ins>Subd. 2.</ins> <ins><b>Expert scientific advice.</b></ins> <ins>The Clean Water Council and public agencies </ins>&#10;11.11   <ins>and private entities shall make use of available public and private expertise from </ins>&#10;11.12   <ins>educational, research, and technical organizations, including the University of Minnesota </ins>&#10;11.13   <ins>and other higher education institutions, to provide appropriate independent expert advice </ins>&#10;11.14   <ins>on models, methods, and  approaches used in identifying impaired waters, developing </ins>&#10;11.15   <ins>TMDL's, and implementing prevention and restoration. </ins>&#10;11.16       <ins>Subd. 3.</ins> <ins><b>Education.</b></ins> <ins>The Clean Water Council shall develop strategies for </ins>&#10;11.17   <ins>informing, educating, and encouraging the participation of citizens, stakeholders, </ins>&#10;11.18   <ins>and others regarding the identification of impaired waters, development of TMDL's, </ins>&#10;11.19   <ins>development of TMDL implementation plans, and implementation of restoration for </ins>&#10;11.20   <ins>impaired waters. Public agencies shall be  responsible for implementing the strategies. </ins>&#10;&#10;<a id="go.0.9.0"></a>11.21       Sec. 9. <ins><b>[114D.45] CLEAN WATER LEGACY ACCOUNT.</b></ins>&#10;11.22       <ins>Subdivision 1.</ins> <ins><b>Creation.</b></ins> <ins>The clean water legacy account is created as an account </ins>&#10;11.23   <ins>in the environmental fund.  Money in the account must be made available for the </ins>&#10;11.24   <ins>implementation of this chapter and section </ins><ins>446A.073</ins><ins>, </ins><ins>without supplanting or taking the </ins>&#10;11.25   <ins>place of any other funds which are currently available or may become available from any </ins>&#10;11.26   <ins>other source, whether federal, state, local, or private, for implementation of this chapter </ins>&#10;11.27   <ins>and section 446A.073.</ins>&#10;11.28       <ins>Subd. 2.</ins> <ins><b>Sources of revenue.</b></ins> <ins>The following revenues must be deposited in the </ins>&#10;11.29   <ins>clean water legacy account:</ins>&#10;11.30   <ins>(1) money transferred to the account; and </ins>&#10;11.31   <ins>(2) interest accrued on the account.</ins>&#10;11.32       <ins>Subd. 3.</ins> <ins><b>Purposes.</b></ins> <ins>Subject to appropriation by the legislature, the clean water </ins>&#10;11.33   <ins>legacy account may be spent for the following purposes:</ins>&#10;11.34   <ins>(1) to provide grants, loans, and technical assistance to public agencies and others </ins>&#10;11.35   <ins>who are participating in the process of identifying impaired waters, developing TMDL's, </ins>&#10;12.1    <ins>implementing restoration plans for impaired waters, and monitoring the effectiveness </ins>&#10;12.2    <ins>of restoration;</ins>&#10;12.3    <ins>(2) to support measures to prevent waters from becoming impaired and to improve </ins>&#10;12.4    <ins>the quality of waters that are listed as impaired but have no approved TMDL addressing </ins>&#10;12.5    <ins>the impairment;</ins>&#10;12.6    <ins>(3) to provide grants and loans for wastewater and storm water treatment projects </ins>&#10;12.7    <ins>through the Public Facilities Authority;</ins>&#10;12.8    <ins>(4) to support the efforts of public agencies associated with individual sewage </ins>&#10;12.9    <ins>treatment systems and financial assistance for upgrading and replacing the systems; and </ins>&#10;12.10   <ins>(5) to provide funds to state agencies to carry out their responsibilities under this </ins>&#10;12.11   <ins>chapter.</ins>&#10;&#10;<a id="go.0.10.0"></a>12.12       Sec. 10. Minnesota Statutes 2004, section 115.03, is amended by adding a subdivision &#10;12.13   to read:&#10;12.14       <ins>Subd. 10.</ins> <ins><b>Nutrient loading offset.</b></ins> <ins>(a) Prior to the completion of a total maximum </ins>&#10;12.15   <ins>daily load for an impaired water, the Pollution Control Agency may issue a permit for a </ins>&#10;12.16   <ins>new discharger or an expanding discharger if it results in decreased loading to an impaired </ins>&#10;12.17   <ins>water. Where a new discharger or an expanding existing discharger cannot effectively </ins>&#10;12.18   <ins>implement zero discharge options, the agency may issue a permit if the increased loading </ins>&#10;12.19   <ins>is offset by reductions from other sources of loading to the impaired water, so that there is </ins>&#10;12.20   <ins>a net decrease in the pollutant loading of concern. The term "new discharger" is as defined </ins>&#10;12.21   <ins>in Code of Federal Regulations, title 40, section 122.2.</ins>&#10;12.22   <ins>(b) The legislature intends this subdivision to confirm and clarify the authority of the </ins>&#10;12.23   <ins>pollution control agency to issue the authorized permits under prior law. The subdivision </ins>&#10;12.24   <ins>must not be construed as a legislative interpretation within the meaning of Minnesota </ins>&#10;12.25   <ins>Statutes, section 645.16, clause (8), or otherwise as the legislature's intent that the agency </ins>&#10;12.26   <ins>did not have authority to issue such a permit under prior law.</ins>&#10;&#10;<a id="go.0.11.0"></a>12.27       Sec. 11. Minnesota Statutes 2004, section 446A.051, is amended to read:&#10;12.28   <b>446A.051 PROJECT FINANCIAL ASSISTANCE.</b>&#10;12.29   The authority shall assist eligible governmental units in determining what grants or &#10;12.30   loans under sections  446A.06<ins>,</ins> <del>and</del>  446A.07<ins>, 446A.072, 446A.073,  and 446A.081</ins> to apply &#10;12.31   for to finance projects and the manner in which the governmental unit will pay for its &#10;12.32   portion of the project cost. <ins>If a project is eligible for a grant under section 446A.073, the </ins>&#10;12.33   <ins>total grant shall not exceed the greater of the maximum amount from a single program or </ins>&#10;12.34   <ins>the amount the project could receive under section 446A.072.</ins> The authority shall review &#10;13.1    the proposed financing for each project certified by the agency to ascertain whether or &#10;13.2    not: (1) total financing of a project is assured; and (2) the governmental unit's financial &#10;13.3    plan to pay for its portion of the project cost is feasible. &#10;&#10;<a id="go.0.12.0"></a>13.4        Sec. 12. <ins><b>PHOSPHORUS RULE; REPORT.</b></ins>&#10;13.5    <ins>(a) Notwithstanding any law to the contrary, a provision of a Minnesota Pollution </ins>&#10;13.6    <ins>Control Agency rule establishing new or changed limits on phosphorus discharges from a </ins>&#10;13.7    <ins>new or existing wastewater facility must not take effect until July 1, 2007.</ins>&#10;13.8    <ins>(b) The Minnesota Pollution Control Agency must report to the legislature by </ins>&#10;13.9    <ins>February 1, 2007, on a proposed or adopted rule changing limits on phosphorus discharges. </ins>&#10;13.10   <ins>The report must address scientific justification for the new rule and the impact the proposed </ins>&#10;13.11   <ins>or adopted rule will have on needed funding to implement the Clean Water Legacy Act.</ins>&#10;&#10;<a id="go.0.13.0"></a>13.12       Sec. 13. <ins><b>EFFECTIVE DATE.</b></ins>&#10;13.13   <ins>Sections 1 to 12 are effective the day following final enactment.</ins>&#10;