1.1    .................... moves to amend H. F. No. 1343 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 15.99, subdivision 2, is amended to read:
1.4    Subd. 2. Deadline for response. (a) Except as otherwise provided in this section,
1.5section 462.358, subdivision 3b, or chapter 505, and notwithstanding any other law to
1.6the contrary, an agency must approve or deny within 60 days a written request relating
1.7to zoning, septic systems, watershed district review, soil and water conservation district
1.8review, or expansion of the metropolitan urban service area for a permit, license, or other
1.9governmental approval of an action. Failure of an agency to deny a request within 60 days
1.10is approval of the request. If an agency denies the request, it must state in writing the
1.11reasons for the denial at the time that it denies the request.
1.12    (b) When a vote on a resolution or properly made motion to approve a request fails
1.13for any reason, the failure shall constitute a denial of the request provided that those voting
1.14against the motion state on the record the reasons why they oppose the request. A denial
1.15of a request because of a failure to approve a resolution or motion does not preclude an
1.16immediate submission of a same or similar request.
1.17    (c) Except as provided in paragraph (b), if when an agency, other than a multimember
1.18governing body, grants or denies the request, it must state in writing the reasons for the
1.19denial at the time that it grants or denies the request. If a multimember governing body
1.20grants or denies a request, it must state the reasons for denial on the record and. If the
1.21applicant was not present at the time the multimember governing body denies the request,
1.22the multimember governing body must provide the applicant in writing a statement of
1.23the reasons for the denial. If the written statement is not adopted at the same time as the
1.24denial, it must be adopted at the next meeting following the denial of the request but
1.25before the expiration of the time allowed for making a decision under this section. The
1.26written statement must be consistent with the reasons stated in the record at the time of the
1.27denial. The written statement must be provided to the applicant upon adoption.

2.1    Sec. 2. Minnesota Statutes 2006, section 15.99, subdivision 3, is amended to read:
2.2    Subd. 3. Application; extensions. (a) The time limit in subdivision 2 begins upon
2.3the agency's receipt of a written request containing all information required by law or by
2.4a previously adopted rule, ordinance, or policy of the agency, including the applicable
2.5application fee. If an agency receives a written request that does not contain all required
2.6information, the 60-day limit starts over only if the agency sends written notice within 15
2.7business days of receipt of the request telling the requester what information is missing.
2.8    (b) If a request relating to zoning, septic systems, watershed district review, soil and
2.9water conservation district review, or expansion of the metropolitan urban service area
2.10requires the approval of more than one state agency in the executive branch, the 60-day
2.11period in subdivision 2 begins to run for all executive branch agencies on the day a request
2.12containing all required information is received by one state agency. The agency receiving
2.13the request must forward copies to other state agencies whose approval is required.
2.14    (c) An agency response meets the 60-day time limit if the agency can document that
2.15the response was sent within 60 days of receipt of the written request.
2.16    (d) The time limit in subdivision 2 is extended if a state statute, federal law, or court
2.17order requires a process to occur before the agency acts on the request, and the time
2.18periods prescribed in the state statute, federal law, or court order make it impossible to
2.19act on the request within 60 days. In cases described in this paragraph, the deadline is
2.20extended to 60 days after completion of the last process required in the applicable statute,
2.21law, or order. Final approval of an agency receiving a request is not considered a process
2.22for purposes of this paragraph.
2.23    (e) If an application requires a wetland delineation, wetland replacement plan
2.24approval, or certification or determination of exemption from wetland replacement
2.25under section 103G.2241, the deadline in subdivision 2 is extended to 60 days after the
2.26completion of the required delineation, replacement plan approval, or certification or
2.27determination of exemption, whichever is later.
2.28    (e) (f) The time limit in subdivision 2 is extended if: (1) a request submitted to a
2.29state agency requires prior approval of a federal agency; or (2) an application submitted
2.30to a city, county, town, school district, metropolitan or regional entity, or other political
2.31subdivision requires prior approval of a state or federal agency. In cases described in
2.32this paragraph, the deadline for agency action is extended to 60 days after the required
2.33prior approval is granted.
2.34    (f) (g) An agency may extend the time limit in subdivision 2 before the end of the
2.35initial 60-day period by providing written notice of the extension to the applicant. The
3.1notification must state the reasons for the extension and its anticipated length, which may
3.2not exceed 60 days unless approved by the applicant.
3.3    (g) (h) An applicant may by written notice to the agency request an extension of
3.4the time limit under this section.

3.5    Sec. 3. Minnesota Statutes 2006, section 103G.222, subdivision 1, is amended to read:
3.6    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly
3.7or partially, unless replaced by restoring or creating wetland areas of at least equal
3.8public value under a replacement plan approved as provided in section 103G.2242, a
3.9replacement plan under a local governmental unit's comprehensive wetland protection
3.10and management plan approved by the board under section 103G.2243, or, if a permit to
3.11mine is required under section 93.481, under a mining reclamation plan approved by the
3.12commissioner under the permit to mine. Mining reclamation plans shall apply the same
3.13principles and standards for replacing wetlands by restoration or creation of wetland areas
3.14that are applicable to mitigation plans approved as provided in section 103G.2242. Public
3.15value must be determined in accordance with section 103B.3355 or a comprehensive
3.16wetland protection and management plan established under section 103G.2243. Sections
3.17103G.221 to 103G.2372 also apply to excavation in permanently and semipermanently
3.18flooded areas of types 3, 4, and 5 wetlands.
3.19    (b) Replacement must be guided by the following principles in descending order
3.20of priority:
3.21    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish
3.22the wetland;
3.23    (2) minimizing the impact by limiting the degree or magnitude of the wetland
3.24activity and its implementation;
3.25    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected
3.26wetland environment;
3.27    (4) reducing or eliminating the impact over time by preservation and maintenance
3.28operations during the life of the activity;
3.29    (5) compensating for the impact by restoring a wetland; and
3.30    (6) compensating for the impact by replacing or providing substitute wetland
3.31resources or environments.
3.32    For a project involving the draining or filling of wetlands in an amount not exceeding
3.3310,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
3.34paragraph (a), the local government unit may make an on-site sequencing determination
3.35without a written alternatives analysis from the applicant.
4.1    (c) If a wetland is located in a cultivated field, then replacement must be
4.2accomplished through restoration only without regard to the priority order in paragraph
4.3(b), provided that a deed restriction is placed on the altered wetland prohibiting
4.4nonagricultural use for at least ten years.
4.5    (d) If a wetland is drained under section 103G.2241, subdivision 2, the local
4.6government unit may require a deed restriction that prohibits nonagricultural use for at
4.7least ten years unless the drained wetland is replaced as provided under this section. The
4.8local government unit may require the deed restriction if it determines the wetland area
4.9drained is at risk of conversion to a nonagricultural use within ten years based on the
4.10zoning classification, proximity to a municipality or full service road, or other criteria as
4.11determined by the local government unit.
4.12    (e) Restoration and replacement of wetlands must be accomplished in accordance
4.13with the ecology of the landscape area affected and ponds that are created primarily to
4.14fulfill stormwater management and water quality treatment requirements may not be used
4.15to satisfy replacement requirements under this chapter.
4.16    (e) (f) Except as provided in paragraph (f) (g), for a wetland or public waters wetland
4.17located on nonagricultural land, replacement must be in the ratio of two acres of replaced
4.18wetland for each acre of drained or filled wetland.
4.19    (f) (g) For a wetland or public waters wetland located on agricultural land or in a
4.20greater than 80 percent area, replacement must be in the ratio of one acre of replaced
4.21wetland for each acre of drained or filled wetland.
4.22    (g) (h) Wetlands that are restored or created as a result of an approved replacement
4.23plan are subject to the provisions of this section for any subsequent drainage or filling.
4.24    (h) (i) Except in a greater than 80 percent area, only wetlands that have been
4.25restored from previously drained or filled wetlands, wetlands created by excavation in
4.26nonwetlands, wetlands created by dikes or dams along public or private drainage ditches,
4.27or wetlands created by dikes or dams associated with the restoration of previously drained
4.28or filled wetlands may be used in a statewide banking program established in rules adopted
4.29under section 103G.2242, subdivision 1. Modification or conversion of nondegraded
4.30naturally occurring wetlands from one type to another are not eligible for enrollment in a
4.31statewide wetlands bank.
4.32    (i) (j) The Technical Evaluation Panel established under section 103G.2242,
4.33subdivision 2 , shall ensure that sufficient time has occurred for the wetland to develop
4.34wetland characteristics of soils, vegetation, and hydrology before recommending that the
4.35wetland be deposited in the statewide wetland bank. If the Technical Evaluation Panel has
5.1reason to believe that the wetland characteristics may change substantially, the panel shall
5.2postpone its recommendation until the wetland has stabilized.
5.3    (j) (k) This section and sections 103G.223 to 103G.2242, 103G.2364, and
5.4103G.2365 apply to the state and its departments and agencies.
5.5    (k) (l) For projects involving draining or filling of wetlands associated with a new
5.6public transportation project, and for projects expanded solely for additional traffic
5.7capacity, public transportation authorities may purchase credits from the board at the cost
5.8to the board to establish credits. Proceeds from the sale of credits provided under this
5.9paragraph are appropriated to the board for the purposes of this paragraph.
5.10    (l) (m) A replacement plan for wetlands is not required for individual projects that
5.11result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
5.12or replacement of a currently serviceable existing state, city, county, or town public road
5.13necessary, as determined by the public transportation authority, to meet state or federal
5.14design or safety standards or requirements, excluding new roads or roads expanded solely
5.15for additional traffic capacity lanes. This paragraph only applies to authorities for public
5.16transportation projects that:
5.17    (1) minimize the amount of wetland filling or draining associated with the project
5.18and consider mitigating important site-specific wetland functions on-site;
5.19    (2) except as provided in clause (3), submit project-specific reports to the board, the
5.20Technical Evaluation Panel, the commissioner of natural resources, and members of the
5.21public requesting a copy at least 30 days prior to construction that indicate the location,
5.22amount, and type of wetlands to be filled or drained by the project or, alternatively,
5.23convene an annual meeting of the parties required to receive notice to review projects to
5.24be commenced during the upcoming year; and
5.25    (3) for minor and emergency maintenance work impacting less than 10,000 square
5.26feet, submit project-specific reports, within 30 days of commencing the activity, to the
5.27board that indicate the location, amount, and type of wetlands that have been filled
5.28or drained.
5.29    Those required to receive notice of public transportation projects may appeal
5.30minimization, delineation, and on-site mitigation decisions made by the public
5.31transportation authority to the board according to the provisions of section 103G.2242,
5.32subdivision 9 . The Technical Evaluation Panel shall review minimization and delineation
5.33decisions made by the public transportation authority and provide recommendations
5.34regarding on-site mitigation if requested to do so by the local government unit, a
5.35contiguous landowner, or a member of the Technical Evaluation Panel.
6.1    Except for state public transportation projects, for which the state Department of
6.2Transportation is responsible, the board must replace the wetlands, and wetland areas of
6.3public waters if authorized by the commissioner or a delegated authority, drained or filled
6.4by public transportation projects on existing roads.
6.5    Public transportation authorities at their discretion may deviate from federal and
6.6state design standards on existing road projects when practical and reasonable to avoid
6.7wetland filling or draining, provided that public safety is not unreasonably compromised.
6.8The local road authority and its officers and employees are exempt from liability for
6.9any tort claim for injury to persons or property arising from travel on the highway and
6.10related to the deviation from the design standards for construction or reconstruction under
6.11this paragraph. This paragraph does not preclude an action for damages arising from
6.12negligence in construction or maintenance on a highway.
6.13    (m) (n) If a landowner seeks approval of a replacement plan after the proposed
6.14project has already affected the wetland, the local government unit may require the
6.15landowner to replace the affected wetland at a ratio not to exceed twice the replacement
6.16ratio otherwise required.
6.17    (n) (o) A local government unit may request the board to reclassify a county or
6.18watershed on the basis of its percentage of presettlement wetlands remaining. After
6.19receipt of satisfactory documentation from the local government, the board shall change
6.20the classification of a county or watershed. If requested by the local government unit,
6.21the board must assist in developing the documentation. Within 30 days of its action to
6.22approve a change of wetland classifications, the board shall publish a notice of the change
6.23in the Environmental Quality Board Monitor.
6.24    (o) (p) One hundred citizens who reside within the jurisdiction of the local
6.25government unit may request the local government unit to reclassify a county or watershed
6.26on the basis of its percentage of presettlement wetlands remaining. In support of their
6.27petition, the citizens shall provide satisfactory documentation to the local government unit.
6.28The local government unit shall consider the petition and forward the request to the board
6.29under paragraph (n) (o) or provide a reason why the petition is denied.

6.30    Sec. 4. Minnesota Statutes 2006, section 103G.222, subdivision 3, is amended to read:
6.31    Subd. 3. Wetland replacement siting. (a) Siting wetland replacement must follow
6.32this priority order:
6.33    (1) on site or in the same minor watershed as the affected wetland;
6.34    (2) in the same watershed as the affected wetland;
6.35    (3) in the same county as the affected wetland;
7.1    (4) for replacement by wetland banking, in the same wetland bank service area as
7.2the impacted wetland, except that impacts in a 50 to 80 percent area must be replaced in
7.3a 50 to 80 percent area and impacts in a less than 50 percent area must be replaced in a
7.4less than 50 percent area;
7.5    (5) for project specific replacement, in an adjacent watershed or county to the
7.6affected wetland, or for replacement by wetland banking, in an adjacent wetland bank
7.7service area, except that impacts in a 50 to 80 percent area must be replaced in a 50 to
7.880 percent area and impacts in a less than 50 percent area must be replaced in a less
7.9than 50 percent area; and
7.10    (5) (6) statewide, only for wetlands affected in greater than 80 percent areas and for
7.11public transportation projects, except that wetlands affected in less than 50 percent areas
7.12must be replaced in less than 50 percent areas, and wetlands affected in the seven-county
7.13metropolitan area must be replaced at a ratio of two to one in: (i) the affected county or,
7.14(ii) in another of the seven metropolitan counties, or (iii) in one of the major watersheds
7.15that are wholly or partially within the seven-county metropolitan area, but at least one to
7.16one must be replaced within the seven-county metropolitan area.
7.17    (b) Notwithstanding paragraph (a), siting wetland replacement in greater than 80
7.18percent areas may follow the priority order under this paragraph: (1) by wetland banking
7.19after evaluating on-site replacement and replacement within the watershed; (2) replaced
7.20in an adjacent wetland bank service area if wetland bank credits are not reasonably
7.21available in the same wetland bank service area as the affected wetland, as determined
7.22by the local government unit or by a comprehensive inventory approved by the board;
7.23and (3) statewide.
7.24    (c) Notwithstanding paragraph (a), siting wetland replacement in the seven-county
7.25metropolitan area must follow the priority order under this paragraph: (1) in the affected
7.26county; (2) in another of the seven metropolitan counties; or (3) in one of the major
7.27watersheds that are wholly or partially within the seven-county metropolitan area, but at
7.28least one to one must be replaced within the seven-county metropolitan area.
7.29    (d) The exception in paragraph (a), clause (5) (6), does not apply to replacement
7.30completed using wetland banking credits established by a person who submitted a
7.31complete wetland banking application to a local government unit by April 1, 1996.
7.32    (c) (e) When reasonable, practicable, and environmentally beneficial replacement
7.33opportunities are not available in siting priorities listed in paragraph (a), the applicant
7.34may seek opportunities at the next level.
7.35    (d) (f) For the purposes of this section, "reasonable, practicable, and environmentally
7.36beneficial replacement opportunities" are defined as opportunities that:
8.1    (1) take advantage of naturally occurring hydrogeomorphological conditions and
8.2require minimal landscape alteration;
8.3    (2) have a high likelihood of becoming a functional wetland that will continue
8.4in perpetuity;
8.5    (3) do not adversely affect other habitat types or ecological communities that are
8.6important in maintaining the overall biological diversity of the area; and
8.7    (4) are available and capable of being done after taking into consideration cost,
8.8existing technology, and logistics consistent with overall project purposes.
8.9    (e) (g) Regulatory agencies, local government units, and other entities involved in
8.10wetland restoration shall collaborate to identify potential replacement opportunities within
8.11their jurisdictional areas.

8.12    Sec. 5. Minnesota Statutes 2006, section 103G.2241, subdivision 1, is amended to read:
8.13    Subdivision 1. Agricultural activities. (a) A replacement plan for wetlands is
8.14not required for:
8.15    (1) activities in a wetland that was planted with annually seeded crops, was in a crop
8.16rotation seeding of pasture grass or legumes, or was required to be set aside to receive
8.17price support or other payments under United States Code, title 7, sections 1421 to 1469,
8.18in six of the last ten years prior to January 1, 1991;
8.19    (2) activities in a wetland that is or has been enrolled in the federal conservation
8.20reserve program under United States Code, title 16, section 3831, that:
8.21    (i) was planted with annually seeded crops, was in a crop rotation seeding, or was
8.22required to be set aside to receive price support or payment under United States Code,
8.23title 7, sections 1421 to 1469, in six of the last ten years prior to being enrolled in the
8.24program; and
8.25    (ii) has not been restored with assistance from a public or private wetland restoration
8.26program;
8.27    (3) activities in a wetland that has received a commenced drainage determination
8.28provided for by the federal Food Security Act of 1985, that was made to the county
8.29Agricultural Stabilization and Conservation Service office prior to September 19, 1988,
8.30and a ruling and any subsequent appeals or reviews have determined that drainage of the
8.31wetland had been commenced prior to December 23, 1985;
8.32    (4) activities in a type 1 wetland on agricultural land, except for bottomland
8.33hardwood type 1 wetlands, and activities in a type 2 or type 6 wetland that is less than two
8.34acres in size and located on agricultural land;
8.35    (1) activities in a wetland conducted as part of normal farming practices. For
8.36purposes of this clause, "normal farming practices" means farming, silvicultural, grazing,
9.1and ranching activities such as plowing, seeding, cultivating, and harvesting for the
9.2production of feed, food, fuel, fiber, and forest products, but does not include activities
9.3that result in the draining or filling of wetlands in whole or part;
9.4    (2) soil and water conservation practices approved by the soil and water conservation
9.5district, after review by the Technical Evaluation Panel;
9.6    (5) (3) aquaculture activities including pond excavation and construction and
9.7maintenance of associated access roads and dikes authorized under, and conducted in
9.8accordance with, a permit issued by the United States Army Corps of Engineers under
9.9section 404 of the federal Clean Water Act, United States Code, title 33, section 1344, but
9.10not including construction or expansion of buildings; or
9.11    (6) (4) wild rice production activities, including necessary diking and other activities
9.12authorized under a permit issued by the United States Army Corps of Engineers under
9.13section 404 of the federal Clean Water Act, United States Code, title 33, section 1344;.
9.14    (7) normal agricultural practices to control noxious or secondary weeds as defined
9.15by rule of the commissioner of agriculture, in accordance with applicable requirements
9.16under state and federal law, including established best management practices; and
9.17    (8) agricultural activities in a wetland that is on agricultural land:
9.18    (i) annually enrolled in the federal Agriculture Improvement and Reform Act of
9.191996 and is subject to United States Code, title 16, sections 3821 to 3823, in effect on
9.20January 1, 2000; or
9.21    (ii) subject to subsequent federal farm program restrictions that meet minimum
9.22state standards under this chapter and sections 103A.202 and 103B.3355 and that have
9.23been approved by the Board of Water and Soil Resources, the commissioners of natural
9.24resources and agriculture, and the Pollution Control Agency.
9.25    (b) Land enrolled in a federal farm program under paragraph (a), clause (8), is
9.26eligible for easement participation for those acres not already compensated under a federal
9.27program.
9.28    (c) The exemption under paragraph (a), clause (4), may be expanded to additional
9.29acreage, including types 1, 2, and 6 wetlands that are part of a larger wetland system, when
9.30the additional acreage is part of a conservation plan approved by the local soil and water
9.31conservation district, the additional draining or filling is necessary for efficient operation
9.32of the farm, the hydrology of the larger wetland system is not adversely affected, and
9.33wetlands other than types 1, 2, and 6 are not drained or filled.

9.34    Sec. 6. Minnesota Statutes 2006, section 103G.2241, subdivision 2, is amended to read:
9.35    Subd. 2. Drainage. (a) For the purposes of this subdivision, "public drainage
9.36system" means a drainage system as defined in section 103E.005, subdivision 12, and any
10.1ditch or tile lawfully connected to the drainage system. If wetlands drained under this
10.2subdivision are converted to uses prohibited under paragraph (b), clause (2), during the
10.3ten-year period following drainage, the wetlands must be replaced according to section
10.4103G.222.
10.5    (b) A replacement plan is not required for draining of type 1 wetlands, or up to five
10.6acres of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed
10.7drainage benefits for a public drainage system, provided that:
10.8    (1) during the 20-year period that ended January 1, 1992:
10.9    (i) there was an expenditure made from the drainage system account for the public
10.10drainage system;
10.11    (ii) the public drainage system was repaired or maintained as approved by the
10.12drainage authority; or
10.13    (iii) no repair or maintenance of the public drainage system was required under
10.14section 103E.705, subdivision 1, as determined by the public drainage authority; and
10.15    (2) the wetlands are not drained for conversion to:
10.16    (i) platted lots;
10.17    (ii) planned unit, commercial, or industrial developments; or
10.18    (iii) any development with more than one residential unit per 40 acres.
10.19If wetlands drained under this paragraph are converted to uses prohibited under clause
10.20(2) during the ten-year period following drainage, the wetlands must be replaced under
10.21section 103G.222.
10.22    (c) A replacement plan is not required for draining or filling of wetlands, except for
10.23draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years,
10.24resulting from maintenance and repair of existing public drainage systems.
10.25    (d) A replacement plan is not required for draining or filling of wetlands, except
10.26for draining wetlands that have been in existence for more than 25 years, resulting from
10.27maintenance and repair of existing drainage systems other than public drainage systems.
10.28    (e) A replacement plan is not required for draining or filling of wetlands resulting
10.29from activities conducted as part of a public drainage system improvement project that
10.30received final approval from the drainage authority before July 1, 1991, and after July 1,
10.311986, if:
10.32    (1) the approval remains valid;
10.33    (2) the project remains active; and
10.34    (3) no additional drainage will occur beyond that originally approved.
10.35    (e) A replacement plan is not required for draining agricultural land that: (1) was
10.36planted with annually seeded crops before June 10 and subsequently harvested, except for
11.1crops that are normally planted after that date, in eight out of the ten most recent years
11.2prior to the impact; (2) was in a crop rotation seeding of pasture grass or legumes in eight
11.3out of the ten most recent years prior to the impact; or (3) was enrolled in a state or federal
11.4land conservation program and met the requirements of clause (1) or (2) before enrollment.
11.5    (f) The public drainage authority may, as part of the repair, install control structures,
11.6realign the ditch, construct dikes along the ditch, or make other modifications as necessary
11.7to prevent drainage of the wetland.
11.8    (g) Wetlands of all types that would be drained as a part of a public drainage repair
11.9project are eligible for the permanent wetlands preserve under section 103F.516. The
11.10board shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have
11.11been in existence for more than 25 years on public drainage systems and other wetlands
11.12that have the greatest risk of drainage from a public drainage repair project.

11.13    Sec. 7. Minnesota Statutes 2006, section 103G.2241, subdivision 3, is amended to read:
11.14    Subd. 3. Federal approvals. A replacement plan for wetlands is not required for:
11.15    (1) activities exempted from federal regulation under United States Code, title 33,
11.16section 1344(f), as in effect on January 1, 1991;
11.17    (2) activities authorized under, and conducted in accordance with, an applicable
11.18general permit issued by the United States Army Corps of Engineers under section 404
11.19of the federal Clean Water Act, United States Code, title 33, section 1344, except the
11.20nationwide permit in Code of Federal Regulations, title 33, section 330.5, paragraph (a),
11.21clauses (14), limited to when a new road crosses a wetland, and (26), as in effect on
11.22January 1, 1991; or
11.23    (3) activities authorized under the federal Clean Water Act, section 404, or the
11.24Rivers and Harbors Act, section 10, regulations that meet minimum state standards
11.25under this chapter and sections 103A.202 and 103B.3355 and that have been approved
11.26by the Board of Water and Soil Resources, the commissioners of natural resources and
11.27agriculture, and the Pollution Control Agency.

11.28    Sec. 8. Minnesota Statutes 2006, section 103G.2241, subdivision 6, is amended to read:
11.29    Subd. 6. Utilities; public works. (a) A replacement plan for wetlands is not
11.30required for:
11.31    (1) placement, maintenance, repair, enhancement, or replacement of utility or
11.32utility-type service if:
11.33    (i) the impacts of the proposed project on the hydrologic and biological
11.34characteristics of the wetland have been avoided and minimized to the extent possible; and
11.35    (ii) the proposed project significantly modifies or alters less than one-half acre of
11.36wetlands;
12.1    (2) activities associated with routine maintenance of utility and pipeline
12.2rights-of-way, provided the activities do not result in additional intrusion into the wetland;
12.3    (3) alteration of a wetland associated with the operation, maintenance, or repair of
12.4an interstate pipeline within all existing or acquired interstate pipeline rights-of-way;
12.5    (4) emergency repair and normal maintenance and repair of existing public works,
12.6provided the activity does not result in additional intrusion of the public works into the
12.7wetland and does not result in the draining or filling, wholly or partially, of a wetland;
12.8    (5) normal maintenance and minor repair of structures causing no additional
12.9intrusion of an existing structure into the wetland, and maintenance and repair of private
12.10crossings that do not result in the draining or filling, wholly or partially, of a wetland; or
12.11    (6) repair and updating of existing individual sewage treatment systems as necessary
12.12to comply with local, state, and federal regulations.
12.13    (1) new placement or maintenance, repair, enhancement, or replacement of existing
12.14utility or utility-type service, including pipelines, if:
12.15    (i) the direct and indirect impacts of the proposed project have been avoided and
12.16minimized to the extent possible; and
12.17    (ii) the proposed project significantly modifies or alters less than one-half acre of
12.18wetlands;
12.19    (2) activities associated with operation, routine maintenance, or emergency repair of
12.20existing utilities and public work structures, including pipelines, provided the activities
12.21do not result in additional wetland intrusion or additional draining or filling of a wetland
12.22either wholly or partially; or
12.23    (3) repair and updating of existing individual sewage treatment systems necessary to
12.24comply with local, state, and federal regulations.
12.25    (b) For maintenance, repair, and replacement, the local government unit may issue
12.26a seasonal or annual exemption certification or the utility may proceed without local
12.27government unit certification if the utility is carrying out the work according to approved
12.28best management practices. Work of an emergency nature may proceed as necessary
12.29and any drain or fill activities shall be addressed with the local government unit after
12.30the emergency work has been completed.

12.31    Sec. 9. Minnesota Statutes 2006, section 103G.2241, subdivision 9, is amended to read:
12.32    Subd. 9. De minimis. (a) Except as provided in paragraphs (b) and (c), a
12.33replacement plan for wetlands is not required for draining or filling the following amounts
12.34of wetlands as part of a project:
13.1    (1) 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and
13.2tamarack wetlands, outside of the shoreland wetland protection zone in a greater than
13.380 percent area;
13.4    (2) 5,000 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar
13.5and tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80
13.6percent area;
13.7    (3) 2,000 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland
13.8wetland protection zone in a less than 50 percent area;
13.9    (4) 400 100 square feet of wetland types not listed in clauses (1) to (3) outside of
13.10shoreland wetland protection zones in all counties; or
13.11    (5) 400 square feet of type 1, 2, 3, 4, 5, 6, 7, or 8 wetland, in beyond the building
13.12setback zone, as defined in the local shoreland management ordinance, but within the
13.13shoreland wetland protection zone, except that. In a greater than 80 percent area, the
13.14local government unit may increase the de minimis amount up to 1,000 square feet in the
13.15shoreland protection zone in areas beyond the building setback if the wetland is isolated
13.16and is determined to have no direct surficial connection to the public water. To the extent
13.17that a local shoreland management ordinance is more restrictive than this provision, the
13.18local shoreland ordinance applies; or
13.19    (6) up to 20 square feet of wetland, regardless of type or location.
13.20    (b) The amounts listed in paragraph (a), clauses (1) to (5) (6), may not be combined
13.21on a project.
13.22    (c) This exemption no longer applies to a landowner's portion of a wetland when
13.23the cumulative area drained or filled of the landowner's portion since January 1, 1992, is
13.24the greatest of:
13.25    (1) the applicable area listed in paragraph (a), if the landowner owns the entire
13.26wetland;
13.27    (2) five percent of the landowner's portion of the wetland; or
13.28    (3) 400 square feet.
13.29    (d) This exemption may not be combined with another exemption in this section on
13.30a project.
13.31    (e) Property may not be divided to increase the amounts listed in paragraph (a).

13.32    Sec. 10. Minnesota Statutes 2006, section 103G.2241, subdivision 11, is amended to
13.33read:
13.34    Subd. 11. Exemption conditions. (a) A person conducting an activity in a wetland
13.35under an exemption in subdivisions 1 to 10 shall ensure that:
14.1    (1) appropriate erosion control measures are taken to prevent sedimentation of
14.2the water;
14.3    (2) the activity does not block fish passage in a watercourse; and
14.4    (3) the activity is conducted in compliance with all other applicable federal,
14.5state, and local requirements, including best management practices and water resource
14.6protection requirements established under chapter 103H.
14.7    (b) An activity is exempt if it qualifies for any one of the exemptions, even though it
14.8may be indicated as not exempt under another exemption.
14.9    (c) Persons proposing to conduct an exempt activity are encouraged to contact the
14.10local government unit or the local government unit's designee for advice on minimizing
14.11wetland impacts.
14.12    (d) The board shall develop rules that address the application and implementation
14.13of exemptions and that provide for estimates and reporting of exempt wetland impacts,
14.14including those in section 103G.2241, subdivisions 2, 6, and 9.

14.15    Sec. 11. Minnesota Statutes 2006, section 103G.2242, subdivision 2, is amended to
14.16read:
14.17    Subd. 2. Evaluation. (a) Questions concerning the public value, location, size,
14.18or type of a wetland shall be submitted to and determined by a Technical Evaluation
14.19Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of
14.20a technical professional employee of the board, a technical professional employee of
14.21the local soil and water conservation district or districts, a technical professional with
14.22expertise in water resources management appointed by the local government unit, and
14.23a technical professional employee of the Department of Natural Resources for projects
14.24affecting public waters or wetlands adjacent to public waters. The panel shall use the
14.25"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987),
14.26including updates, supplementary guidance, and replacements, if any, "Wetlands of
14.27the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition),
14.28and "Classification of Wetlands and Deepwater Habitats of the United States" (1979
14.29edition). The panel shall provide the wetland determination and recommendations on
14.30other technical matters to the local government unit that must approve a replacement
14.31plan, wetland banking plan, exemption determination, no-loss determination, or wetland
14.32boundary or type determination and may recommend approval or denial of the plan. The
14.33authority must consider and include the decision of the Technical Evaluation Panel in their
14.34approval or denial of a plan or determination.
14.35    (b) Persons conducting wetland or public waters boundary delineations or type
14.36determinations are exempt from the requirements of chapter 326. By January 15, 2001,
15.1the board, in consultation with the Minnesota Association of Professional Soil Scientists,
15.2the University of Minnesota, and the Wetland Delineators' Association, shall submit a plan
15.3for a professional wetland delineator certification program to the legislature. The board
15.4may develop a professional wetland delineator certification program.

15.5    Sec. 12. Minnesota Statutes 2006, section 103G.2242, subdivision 2a, is amended to
15.6read:
15.7    Subd. 2a. Wetland boundary or type determination. (a) A landowner may apply
15.8for a wetland boundary or type determination from the local government unit. The
15.9landowner applying for the determination is responsible for submitting proof necessary
15.10to make the determination, including, but not limited to, wetland delineation field data,
15.11observation well data, topographic mapping, survey mapping, and information regarding
15.12soils, vegetation, hydrology, and groundwater both within and outside of the proposed
15.13wetland boundary.
15.14    (b) A local government unit that receives an application under paragraph (a) may
15.15seek the advice of the Technical Evaluation Panel as described in subdivision 2, and, if
15.16necessary, expand the Technical Evaluation Panel. The local government unit may delegate
15.17the decision authority for wetland boundary or type determinations with the zoning
15.18administrator to designated staff, or establish other procedures it considers appropriate.
15.19    (c) The local government unit decision must be made in compliance with section
15.2015.99 . Within ten calendar days of the decision, the local government unit decision must
15.21be mailed to the landowner, members of the Technical Evaluation Panel, the watershed
15.22district or watershed management organization, if one exists, and individual members of
15.23the public who request a copy.
15.24    (d) Appeals of decisions made by designated local government staff must be made
15.25to the local government unit. Notwithstanding any law to the contrary, a ruling on an
15.26appeal must be made by the local government unit within 30 days from the date of the
15.27filing of the appeal.
15.28    (e) The local government unit decision is valid for three years unless the Technical
15.29Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation,
15.30or soils of the area have been sufficient to alter the wetland boundary or type.

15.31    Sec. 13. Minnesota Statutes 2006, section 103G.2242, subdivision 9, is amended to
15.32read:
15.33    Subd. 9. Appeal. (a) Appeal of a replacement plan, exemption, wetland banking,
15.34wetland boundary or type determination, or no-loss decision, or restoration order may
15.35be obtained by mailing a petition and payment of a filing fee of $200, which shall be
15.36retained by the board to defray administrative costs, to the board within 30 days after the
16.1postmarked date of the mailing specified in subdivision 7. If appeal is not sought within
16.230 days, the decision becomes final. The local government unit may require the petitioner
16.3to post a letter of credit, cashier's check, or cash in an amount not to exceed $500. If the
16.4petition for hearing is accepted, the amount posted must be returned to the petitioner.
16.5Appeal may be made by:
16.6    (1) the wetland owner;
16.7    (2) any of those to whom notice is required to be mailed under subdivision 7; or
16.8    (3) 100 residents of the county in which a majority of the wetland is located.
16.9    (b) Within 30 days after receiving a petition, the board shall decide whether to
16.10grant the petition and hear the appeal. The board shall grant the petition unless the board
16.11finds that:
16.12    (1) the appeal is meritless, trivial, or brought solely for the purposes of delay;
16.13    (2) the petitioner has not exhausted all local administrative remedies;
16.14    (3) expanded technical review is needed;
16.15    (4) the local government unit's record is not adequate; or
16.16    (5) the petitioner has not posted a letter of credit, cashier's check, or cash if required
16.17by the local government unit.
16.18    (c) In determining whether to grant the appeal, the board shall also consider the
16.19size of the wetland, other factors in controversy, any patterns of similar acts by the local
16.20government unit or petitioner, and the consequences of the delay resulting from the appeal.
16.21    (d) All appeals must be heard by the committee for dispute resolution of the board,
16.22and a decision made within 60 days of filing the local government unit's record and the
16.23written briefs submitted for the appeal. The decision must be served by mail on the parties
16.24to the appeal, and is not subject to the provisions of chapter 14. A decision whether to
16.25grant a petition for appeal and a decision on the merits of an appeal must be considered the
16.26decision of an agency in a contested case for purposes of judicial review under sections
16.2714.63 to 14.69.
16.28    (e) Notwithstanding section 16A.1283, the board shall establish a fee schedule to
16.29defray the administrative costs of appeals made to the board under this subdivision. Fees
16.30established under this authority shall not exceed $1,000. Establishment of the fee is not
16.31subject to the rulemaking process of chapter 14 and section 14.386 does not apply.

16.32    Sec. 14. Minnesota Statutes 2006, section 103G.2242, subdivision 12, is amended to
16.33read:
16.34    Subd. 12. Replacement credits. (a) No public or private wetland restoration,
16.35enhancement, or construction may be allowed for replacement unless specifically
16.36designated for replacement and paid for by the individual or organization performing the
17.1wetland restoration, enhancement, or construction, and is completed prior to any draining
17.2or filling of the wetland.
17.3    (b) Paragraph (a) does not apply to a wetland whose owner has paid back with
17.4interest the individual or organization restoring, enhancing, or constructing the wetland.
17.5    (c) Notwithstanding section 103G.222, subdivision 1, paragraph (h) (i), the
17.6following actions, and others established in rule, that are consistent with criteria in rules
17.7adopted by the board in conjunction with the commissioners of natural resources and
17.8agriculture, are eligible for replacement credit as determined by the local government unit,
17.9including enrollment in a statewide wetlands bank:
17.10    (1) reestablishment of permanent native, noninvasive vegetative cover on a wetland
17.11on agricultural land that was planted with annually seeded crops, was in a crop rotation
17.12seeding of pasture grasses or legumes, or was in a land retirement program during the
17.13past ten years;
17.14    (2) buffer areas of permanent native, noninvasive vegetative cover established or
17.15preserved on upland adjacent to replacement wetlands;
17.16    (3) wetlands restored for conservation purposes under terminated easements or
17.17contracts; and
17.18    (4) water quality treatment ponds constructed to pretreat storm water runoff prior
17.19to discharge to wetlands, public waters, or other water bodies, provided that the water
17.20quality treatment ponds must be associated with an ongoing or proposed project that
17.21will impact a wetland and replacement credit for the treatment ponds is based on the
17.22replacement of wetland functions and on an approved stormwater management plan for
17.23the local government.
17.24    (d) Notwithstanding section 103G.222, subdivision 1, paragraphs (e) (f) and (f) (g),
17.25the board may establish by rule different replacement ratios for restoration projects with
17.26exceptional natural resource value.

17.27    Sec. 15. Minnesota Statutes 2006, section 103G.2242, subdivision 15, is amended to
17.28read:
17.29    Subd. 15. Fees paid to board. All fees established in subdivision subdivisions 9
17.30and 14 must be paid to the Board of Water and Soil Resources and credited to the general
17.31fund to be used for the purpose of administration of the wetland bank and to process
17.32appeals under section 103G.2242, subdivision 9.

17.33    Sec. 16. Minnesota Statutes 2006, section 103G.2243, subdivision 2, is amended to
17.34read:
17.35    Subd. 2. Plan contents. A comprehensive wetland protection and management
17.36plan may:
18.1    (1) provide for classification of wetlands in the plan area based on:
18.2    (i) an inventory of wetlands in the plan area;
18.3    (ii) an assessment of the wetland functions listed in section 103B.3355, using a
18.4methodology chosen by the Technical Evaluation Panel from one of the methodologies
18.5established or approved by the board under that section; and
18.6    (iii) the resulting public values;
18.7    (2) vary application of the sequencing standards in section 103G.222, subdivision 1,
18.8paragraph (b), for projects based on the classification and criteria set forth in the plan;
18.9    (3) vary the replacement standards of section 103G.222, subdivision 1, paragraphs
18.10(e) (f) and (f) (g), based on the classification and criteria set forth in the plan, for specific
18.11wetland impacts provided there is no net loss of public values within the area subject to
18.12the plan, and so long as:
18.13    (i) in a 50 to 80 percent area, a minimum acreage requirement of one acre of replaced
18.14wetland for each acre of drained or filled wetland requiring replacement is met within
18.15the area subject to the plan; and
18.16    (ii) in a less than 50 percent area, a minimum acreage requirement of two acres of
18.17replaced wetland for each acre of drained or filled wetland requiring replacement is met
18.18within the area subject to the plan, except that replacement for the amount above a 1:1
18.19ratio can be accomplished as described in section 103G.2242, subdivision 12; and
18.20    (4) in a greater than 80 percent area, allow replacement credit, based on the
18.21classification and criteria set forth in the plan, for any project that increases the public
18.22value of wetlands, including activities on adjacent upland acres; and.
18.23    (5) in a greater than 80 percent area, based on the classification and criteria set forth
18.24in the plan, expand the application of the exemptions in section 103G.2241, subdivision
18.251 , paragraph (a), clause (4), to also include nonagricultural land, provided there is no
18.26net loss of wetland values.

18.27    Sec. 17. Minnesota Statutes 2006, section 103G.2372, is amended by adding a
18.28subdivision to read:
18.29    Subd. 4. Citizen enforcement. (a) A citizen may commence a civil action in district
18.30court on the citizen's behalf:
18.31    (1) against any person, including any governmental entity or agency, who is alleged
18.32to be in violation of sections 103G.211 or 103G.221 to 103G.2243, or applicable orders
18.33and rules thereunder; or
18.34    (2) against the state or responsible local governmental entity when there is alleged a
18.35failure to perform any act or duty under sections 103G.211 or 103G.221 to 103G.2243, or
18.36applicable orders and rules thereunder, that is not discretionary.
19.1The district court may enforce this chapter, enforce an order regarding the provisions of
19.2this chapter, or order the state or responsible local governmental entity to perform such act
19.3or duty, as the case may be, and may apply any appropriate civil penalties or injunctive
19.4relief.
19.5    (b) No action may be commenced under paragraph (a):
19.6    (1) prior to 60 days after the plaintiff has given notice of the alleged violation to
19.7the responsible local governmental entity, to the state, and to any alleged violator, if
19.8applicable; or
19.9     (2) if the responsible local governmental entity or the state has commenced and is
19.10diligently prosecuting a civil or criminal action in district court to require compliance.
19.11    (c) In any action commenced under this subdivision, the state and the responsible
19.12local governmental entity may intervene as of right.
19.13    (d) The court, in issuing a final order in an action brought under this subdivision,
19.14may award costs of litigation, including reasonable attorney and expert witness fees, to a
19.15prevailing or substantially prevailing party, whenever the court determines such award
19.16is appropriate.
19.17    (e) Nothing in this subdivision restricts any right that a person or class of persons
19.18may have under any statute or common law to seek enforcement of chapter 103G or
19.19to seek any other relief.

19.20    Sec. 18. RULEMAKING.
19.21    Within 90 days of the effective date of this section, the Board of Water and Soil
19.22Resources shall adopt rules that amend Minnesota Rules, chapter 8420. These rules are
19.23exempt from the rulemaking provisions of Minnesota Statutes, chapter 14, except that
19.24Minnesota Statutes, section 14.386, applies and the proposed rules must be submitted
19.25to the senate and house committees having jurisdiction over environment and natural
19.26resources at least 30 days prior to being published in the State Register. The amended
19.27rules are effective for two years from the date of publication in the State Register unless
19.28they are superceded by permanent rules.

19.29    Sec. 19. APPROPRIATIONS.
19.30    (a) $1,060,000 in fiscal year 2008 and $1,060,000 in fiscal year 2009 are appropriated
19.31from the general fund to the Board of Water and Soil Resources for the following purposes
19.32to support implementation of the Wetland Conservation Act: $500,000 each year is to
19.33make grants to local units of governments to improve response to major wetland violations;
19.34$500,000 each year is for staffing to provide adequate state oversight and technical support
19.35to local governments administering the Wetland Conservation Act; and $60,000 each year
19.36is for staff to monitor and enforce wetland replacement and wetland bank sites.
20.1    (b) $60,000 in fiscal year 2008 is appropriated from the general fund to the Board of
20.2Water and Soil Resources to develop a comprehensive state wetland restoration vision and
20.3plan. This is a onetime appropriation. All of the money appropriated in this paragraph as
20.4grants to local governments shall be administered through the Board of Water and Soil
20.5Resources' local water resources protection and management program under Minnesota
20.6Statutes, section 103B.3369.

20.7    Sec. 20. REPEALER.
20.8Minnesota Statutes 2006, section 103G.2241, subdivision 8, is repealed.

20.9    Sec. 21. EFFECTIVE DATE.
20.10    Sections 1 to 20 are effective the day following final enactment."
20.11Delete the title and insert:
20.13relating to waters; modifying agency service requirements; modifying provisions
20.14for wetland conservation; providing for civil enforcement; requiring rulemaking;
20.15appropriating money;amending Minnesota Statutes 2006, sections 15.99,
20.16subdivisions 2, 3; 103G.222, subdivisions 1, 3; 103G.2241, subdivisions 1, 2, 3,
20.176, 9, 11; 103G.2242, subdivisions 2, 2a, 9, 12, 15; 103G.2243, subdivision 2;
20.18103G.2372, by adding a subdivision; repealing Minnesota Statutes 2006, section
20.19103G.2241, subdivision 8."