1.1    .................... moves to amend H.F. No. 2731 as follows:
1.2Delete everything after the enacting clause and insert:

1.3	"Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.4    The sums shown in the column under "Appropriations" are appropriated from the
1.5bond proceeds fund, or another named fund, to the state agencies or officials indicated,
1.6to be spent for public purposes. Appropriations of bond proceeds must be spent as
1.7authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire
1.8and better public land and buildings and other public improvements of a capital nature, or
1.9as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or
1.10article XIV. Unless otherwise specified, the appropriations in this act are available until
1.11the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.

1.12 1.13

Sec. 2. BOARD OF WATER AND SOIL RESOURCES

1.14

Subdivision 1.Total Appropriation

$

48,000,000

1.15To the Board of Water and Soil Resources
1.16for the purposes specified in this section.
1.17The board must record in a central location
1.18each project, funded in whole or in part
1.19with funds from this appropriation, that is
1.20expected to have carbon sequestration value
1.21in anticipation of guidelines written by an
1.22interagency committee in conjunction with
1.23the University of Minnesota for assessing
1.24changes in carbon budgets resulting from
1.25bonded restoration projects, including
2.1identification of relevant carbon pools,
2.2timeframes, and measurement protocols.
2.3To the extent possible prairie restorations,
2.4funded in whole or in part with funds from
2.5this appropriation, must be made using best
2.6management practices for native prairie
2.7restoration as defined under Minnesota
2.8Statutes, section 84.02, subdivision 2.

2.9

Subd. 2.RIM Reserve Program

42,000,000

2.10To acquire conservation easements from
2.11landowners to preserve, restore, and enhance
2.12wetlands, riparian lands, and associated
2.13uplands in order to protect soil and water
2.14quality, support fish and wildlife habitat,
2.15and other public benefits. The provisions of
2.16Minnesota Statutes, section 103F.515 apply
2.17to this appropriation, except that the board
2.18may establish alternative payment rates for
2.19easements and practices to establish restored
2.20native prairies, as defined in Minnesota
2.21Statutes, section 84.02, subdivision 7, and
2.22to protect uplands. Of this appropriation, up
2.23to 10 percent may be used to administer the
2.24program.
2.25$2,400,000 of this amount is to be available
2.26for use in the area designated for relief and
2.27recovery from the flooding that occurred
2.28on or after August 18, 2007, in the area
2.29of Southeast Minnesota designated under
2.30Presidential Declaration of Major Disaster,
2.31DR-1717. Funds previously appropriated and
2.32waivers previously authorized to the Board
2.33of Water and Soil Resources for DR-1717
2.34flood relief and recovery in Minnesota
2.35Session Laws 2007, First Special Session
3.1chapter 2, are available and applicable until
3.2June 30, 2010.
3.3The board is authorized to enter into and
3.4amend past agreements with landowners
3.5as required by Minnesota Statutes, section
3.6103F.515, subdivision 5, to allow for
3.7overseeding and harvesting of native prairie
3.8vegetation for use for energy production in
3.9a manner that does not devalue the natural
3.10habitat, water quality benefits or carbon
3.11sequestration functions of the area enrolled
3.12in the easement. This shall occur after seed
3.13production and minimize impacts on wildlife.
3.14Of this appropriation, up to 5 percent may be
3.15used for overseeding.

3.16 3.17

Subd. 3.Wetland Replacement Due to Public Road Projects

4,575,000

3.18To acquire land for wetland restoration or
3.19preservation to replace wetlands drained or
3.20filled as a result of the repair or rehabilitation,
3.21reconstruction or replacement of existing
3.22public roads as required by Minnesota
3.23Statutes, section 103G.222, subdivision 1,
3.24paragraphs (l) and (m). Up to ten percent
3.25may be used to administer the program.
3.26The purchase price paid for acquisition
3.27of land, fee, or perpetual easement must
3.28be the fair market value as determined
3.29by the board. The board may enter into
3.30agreements with the federal government,
3.31other state agencies, political subdivisions,
3.32and nonprofit organizations or fee owners to
3.33acquire land and restore and create wetlands
3.34or to acquire wetland banking credits.
4.1Acquisition of or the conveyance of land may
4.2be in the name of the political subdivision.

4.3

Subd. 4.Clean Water Legacy

1,425,000

4.4$800,000 is to acquire conservation
4.5easements, design and construct water control
4.6structures and pumping infrastructure, and
4.7plant native prairie species of a local ecotype
4.8as defined in Minnesota Statutes, section
4.984.02, subdivision 6, in order to restore the
4.10Grass Lake prairie wetland basins adjacent
4.11to the city of Willmar in Kandiyohi County.
4.12This amount must be matched one to one by
4.13funding from other sources.
4.14$475,000 is for a grant to the city of Gaylord
4.15to improve water quality in the Lake
4.16Titlow watershed. The funds may be used to
4.17predesign and design holding ponds upstream
4.18from Lake Titlow. The design must include
4.19the best location for the ponds, an estimate
4.20of the cost of land acquisition or easements,
4.21construction costs of the holding ponds, and
4.22the estimated expense of maintaining the
4.23structures and who will be responsible for
4.24the expense. The funds may also be used
4.25to construct and reconstruct storm water
4.26sewer drains and related facilities to divert
4.27water that currently drains into Lake Titlow
4.28into holding ponds south of the city. The
4.29cost of reconstructing city streets as part of
4.30this diversion, and as outlined in the city of
4.31Gaylord's street improvement plan, is the
4.32responsibility of the city. This diversion
4.33will keep phosphorus and other chemicals
4.34from entering the lake, and will improve
4.35the water quality of Lake Titlow. The city
5.1must also coordinate with state and county
5.2conservation officials to ensure correct
5.3conservation practices and improvements in
5.4the watershed district. For the purposes of
5.5this appropriation, the criteria, limitations,
5.6and assessment requirements in Minnesota
5.7Statutes, sections 103D.701, 103D.705, and
5.8103D.901, are waived. The information
5.9gained from this project must be made
5.10available for public use. This appropriation
5.11is not available until the commissioner of
5.12finance determines that $200,000 has been
5.13committed to the project from other sources.
5.14$150,000 is for a grant to the Lower
5.15Minnesota Watershed District to acquire
5.16land for, and to design and construct
5.17improvements for dredge material site
5.18projects located within the district.

5.19    Sec. 3. BOND SALE AUTHORIZATION.
5.20    To provide the money appropriated in this act from the bond proceeds fund, the
5.21commissioner of finance shall sell and issue bonds of the state in an amount up to
5.22$48,000,000 in the manner, upon the terms, and with the effect prescribed by Minnesota
5.23Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI,
5.24sections 4 to 7.

5.25    Sec. 4. EFFECTIVE DATE.
5.26    Except as otherwise provided, this act is effective the day following final enactment.

5.27    Sec. 5. Minnesota Statutes 2007 Supplement, section 103G.222, subdivision 1, is
5.28amended to read:
5.29    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly
5.30or partially, unless replaced by restoring or creating wetland areas of at least equal
5.31public value under a replacement plan approved as provided in section 103G.2242, a
5.32replacement plan under a local governmental unit's comprehensive wetland protection
5.33and management plan approved by the board under section 103G.2243, or, if a permit to
5.34mine is required under section 93.481, under a mining reclamation plan approved by the
6.1commissioner under the permit to mine. Mining reclamation plans shall apply the same
6.2principles and standards for replacing wetlands by restoration or creation of wetland areas
6.3that are applicable to mitigation plans approved as provided in section 103G.2242. Public
6.4value must be determined in accordance with section 103B.3355 or a comprehensive
6.5wetland protection and management plan established under section 103G.2243. Sections
6.6103G.221 to 103G.2372 also apply to excavation in permanently and semipermanently
6.7flooded areas of types 3, 4, and 5 wetlands.
6.8    (b) Replacement must be guided by the following principles in descending order
6.9of priority:
6.10    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish
6.11the wetland;
6.12    (2) minimizing the impact by limiting the degree or magnitude of the wetland
6.13activity and its implementation;
6.14    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected
6.15wetland environment;
6.16    (4) reducing or eliminating the impact over time by preservation and maintenance
6.17operations during the life of the activity;
6.18    (5) compensating for the impact by restoring a wetland; and
6.19    (6) compensating for the impact by replacing or providing substitute wetland
6.20resources or environments.
6.21    For a project involving the draining or filling of wetlands in an amount not exceeding
6.2210,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
6.23paragraph (a), the local government unit may make an on-site sequencing determination
6.24without a written alternatives analysis from the applicant.
6.25    (c) If a wetland is located in a cultivated field, then replacement must be
6.26accomplished through restoration only without regard to the priority order in paragraph
6.27(b), provided that a deed restriction is placed on the altered wetland prohibiting
6.28nonagricultural use for at least ten years.
6.29    (d) If a wetland is drained under section 103G.2241, subdivision 2, paragraphs
6.30(b) and (e), the local government unit may require a deed restriction that prohibits
6.31nonagricultural use for at least ten years unless the drained wetland is replaced as provided
6.32under this section. The local government unit may require the deed restriction if it
6.33determines the wetland area drained is at risk of conversion to a nonagricultural use within
6.34ten years based on the zoning classification, proximity to a municipality or full service
6.35road, or other criteria as determined by the local government unit.
7.1    (e) Restoration and replacement of wetlands must be accomplished in accordance
7.2with the ecology of the landscape area affected and ponds that are created primarily to
7.3fulfill stormwater management, and water quality treatment requirements may not be
7.4used to satisfy replacement requirements under this chapter unless the design includes
7.5pretreatment of runoff and the pond is functioning as a wetland.
7.6    (f) Except as provided in paragraph (g), for a wetland or public waters wetland
7.7located on nonagricultural land, replacement must be in the ratio of two acres of replaced
7.8wetland for each acre of drained or filled wetland.
7.9    (g) For a wetland or public waters wetland located on agricultural land or in a greater
7.10than 80 percent area, replacement must be in the ratio of one acre of replaced wetland
7.11for each acre of drained or filled wetland.
7.12    (h) Wetlands that are restored or created as a result of an approved replacement plan
7.13are subject to the provisions of this section for any subsequent drainage or filling.
7.14    (i) Except in a greater than 80 percent area, only wetlands that have been restored
7.15from previously drained or filled wetlands, wetlands created by excavation in nonwetlands,
7.16wetlands created by dikes or dams along public or private drainage ditches, or wetlands
7.17created by dikes or dams associated with the restoration of previously drained or filled
7.18wetlands may be used in a statewide banking program established in rules adopted under
7.19section 103G.2242, subdivision 1. Modification or conversion of nondegraded naturally
7.20occurring wetlands from one type to another are not eligible for enrollment in a statewide
7.21wetlands bank.
7.22    (j) The Technical Evaluation Panel established under section 103G.2242, subdivision
7.232 , shall ensure that sufficient time has occurred for the wetland to develop wetland
7.24characteristics of soils, vegetation, and hydrology before recommending that the wetland
7.25be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason
7.26to believe that the wetland characteristics may change substantially, the panel shall
7.27postpone its recommendation until the wetland has stabilized.
7.28    (k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 103G.2365
7.29apply to the state and its departments and agencies.
7.30    (l) For projects involving draining or filling of wetlands associated with a new public
7.31transportationroad project, and for public road projects expanded solely for additional
7.32traffic capacity, public transportationroad authorities may purchase credits from the board
7.33at the cost to the board to establish credits. Proceeds from the sale of credits provided
7.34under this paragraph are appropriated to the board for the purposes of this paragraph.
7.35For purposes of this paragraph, public road authorities include: the state of Minnesota,
7.36counties, cities, and townships.
8.1    (m) A replacement plan for wetlands is not required for individual projects that
8.2result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
8.3or replacement of a currently serviceable existing state, city, county, or town public road
8.4necessary, as determined by the public transportation authority, to meet state or federal
8.5design or safety standards or requirements, excluding new roads or roads expanded solely
8.6for additional traffic capacity lanes. This paragraph only applies to authorities for public
8.7transportation projects that:
8.8    (1) minimize the amount of wetland filling or draining associated with the project
8.9and consider mitigating important site-specific wetland functions on-site;
8.10    (2) except as provided in clause (3), submit project-specific reports to the board, the
8.11Technical Evaluation Panel, the commissioner of natural resources, and members of the
8.12public requesting a copy at least 30 days prior to construction that indicate the location,
8.13amount, and type of wetlands to be filled or drained by the project or, alternatively,
8.14convene an annual meeting of the parties required to receive notice to review projects to
8.15be commenced during the upcoming year; and
8.16    (3) for minor and emergency maintenance work impacting less than 10,000 square
8.17feet, submit project-specific reports, within 30 days of commencing the activity, to the
8.18board that indicate the location, amount, and type of wetlands that have been filled
8.19or drained.
8.20    Those required to receive notice of public transportation projects may appeal
8.21minimization, delineation, and on-site mitigation decisions made by the public
8.22transportation authority to the board according to the provisions of section 103G.2242,
8.23subdivision 9 . The Technical Evaluation Panel shall review minimization and delineation
8.24decisions made by the public transportation authority and provide recommendations
8.25regarding on-site mitigation if requested to do so by the local government unit, a
8.26contiguous landowner, or a member of the Technical Evaluation Panel.
8.27    Except for state public transportation projects, for which the state Department of
8.28Transportation is responsible, the board must replace the wetlands, and wetland areas of
8.29public waters if authorized by the commissioner or a delegated authority, drained or filled
8.30by public transportation projects on existing roads.
8.31    Public transportation authorities at their discretion may deviate from federal and
8.32state design standards on existing road projects when practical and reasonable to avoid
8.33wetland filling or draining, provided that public safety is not unreasonably compromised.
8.34The local road authority and its officers and employees are exempt from liability for
8.35any tort claim for injury to persons or property arising from travel on the highway and
8.36related to the deviation from the design standards for construction or reconstruction under
9.1this paragraph. This paragraph does not preclude an action for damages arising from
9.2negligence in construction or maintenance on a highway.
9.3    (n) If a landowner seeks approval of a replacement plan after the proposed project
9.4has already affected the wetland, the local government unit may require the landowner to
9.5replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise
9.6required.
9.7    (o) A local government unit may request the board to reclassify a county or
9.8watershed on the basis of its percentage of presettlement wetlands remaining. After
9.9receipt of satisfactory documentation from the local government, the board shall change
9.10the classification of a county or watershed. If requested by the local government unit,
9.11the board must assist in developing the documentation. Within 30 days of its action to
9.12approve a change of wetland classifications, the board shall publish a notice of the change
9.13in the Environmental Quality Board Monitor.
9.14    (p) One hundred citizens who reside within the jurisdiction of the local government
9.15unit may request the local government unit to reclassify a county or watershed on the basis
9.16of its percentage of presettlement wetlands remaining. In support of their petition, the
9.17citizens shall provide satisfactory documentation to the local government unit. The local
9.18government unit shall consider the petition and forward the request to the board under
9.19paragraph (o) or provide a reason why the petition is denied."
9.20Amend the title accordingly