Wetlands funding moves forward as counties face construction roadblock

A number of road construction projects around Minnesota may not begin this year unless lawmakers act quickly to fund a program that helps counties comply with state wetlands regulations.

The House Environment and Natural Resources Policy and Finance Committee took action to help Thursday passing HF434 – as amended – a bill that would appropriate $5 million for the Board of Soil and Water Resources to acquire wetland banking credits and temporarily loosen other restrictions regarding wetlands replacement.

At issue is Minnesota’s Local Road Wetland Replacement Program, which began in the mid-‘90s after the Legislature adopted a “no net loss” wetlands policy. State statutes now require BWSR to replace wetlands lost during certain road projects.

Rep. Dan Fabian

This is done by establishing new wetlands, with the agency using credits from “wetland service banks” (wetlands acquired in other areas), to facilitate these exchanges. However, a number of banks no longer have credits to offer because they haven’t received state funding for the new wetlands.

That’s a problem for counties ready to begin road construction when the ground thaws.

Rick West, director of public works for Otter Tail County, told the committee two road projects in his county are impacted by the issue, and one will not go forward unless some sort of resolution is reached by March 15.

“This is an important thing,” Rep. Dan Fabian (R-Roseau), the committee’s chair, said. “We’re all committed to getting this done so that county road projects can proceed across the state this spring.”

Fabian, who is the sponsor of HF434, offered a delete-all amendment to the bill, adding the $5 million appropriation to language that temporarily gives BWSR more leeway in its use of wetland credits and also exempts some projects from replacement requirements.

That amendment was approved and HF434 now moves to the House Ways and Means Committee. Its companion, SF326, is sponsored by Sen. Bill Ingebrigtsen (R-Alexandria) and awaits action by the Senate Transportation Finance and Policy Committee.