1.1.................... moves to amend H.F. No. 1061, the first engrossment, as follows:
1.2Page 52, after line 33, insert:

1.3    "Sec. 20. Minnesota Statutes 2010, section 116.195, is amended to read:
1.4116.195 BENEFICIAL USE OF WASTEWATER AND STORM WATER;
1.5CAPITAL GRANTS FOR DEMONSTRATION PROJECTS.
1.6    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
1.7have the meanings given them.
1.8    (b) "Agency" means the Pollution Control Agency.
1.9    (c) "Beneficial use of wastewater or storm water" means:
1.10(1) use of the effluent from a wastewater treatment plant that replaces use of
1.11groundwater; or
1.12(2) use of storm water that replaces the use of groundwater.
1.13    (d) "Capital project" means the acquisition or betterment of public land, buildings,
1.14and other public improvements of a capital nature for the treatment of wastewater intended
1.15for beneficial use or for the use of storm water to replace groundwater use. Capital project
1.16includes projects to retrofit, expand, or construct new treatment facilities.
1.17    Subd. 2. Grants for capital project design. The agency shall make grant awards
1.18to political subdivisions for up to 50 percent of the costs to predesign and design capital
1.19projects that demonstrate the beneficial use of wastewater or storm water. The maximum
1.20amount for a grant under this subdivision is $500,000. The grant agreement must provide
1.21that the predesign and design work being funded is public information and available to
1.22anyone without charge. The agency must make the predesign and design work available
1.23on its Web site.
1.24    Subd. 3. Grants for capital project implementation. The agency shall make grant
1.25awards to political subdivisions for up to 50 percent of the costs to acquire, construct,
1.26install, furnish, and equip capital projects that demonstrate the beneficial use of wastewater
2.1or storm water. The political subdivision must submit design plans and specifications
2.2to the agency as part of the application.
2.3    The agency must consult with the Public Facilities Authority and the commissioner
2.4of natural resources in reviewing and ranking applications for grants under this section.
2.5    The application must identify the uses of the treated wastewater or storm water
2.6and greater weight will be given to applications that include a binding commitment to
2.7participate by the user or users.
2.8    The agency must give preference to projects that will reduce use of the greatest
2.9volume of groundwater from aquifers with the slowest rate of recharge.
2.10    Subd. 4. Application form; procedures. The agency shall develop an application
2.11form and procedures.
2.12    Subd. 5. Reports. The agency shall report by February 1 of each year to the chairs
2.13of the house of representatives and senate committees with jurisdiction over environment
2.14policy and finance and capital investment on the grants made and projects funded under
2.15this section. For each demonstration project funded, the report must include information
2.16on the scale of water constraints for the area, the volume of treated wastewater supply
2.17supplied or storm water available, the quality of the storm water or treated wastewater
2.18supplied and treatment implications for the industrial user, impacts to stream flow and
2.19downstream users, and any considerations related to water appropriation and discharge
2.20permits.
2.21EFFECTIVE DATE.This section is effective the day following final enactment.

2.22    Sec. 21. Laws 2009, chapter 172, article 2, section 4, is amended to read:

2.23

Sec. 4. POLLUTION CONTROL AGENCY

$

24,076,000

$

27,285,000

2.24(a) $9,000,000 the first year and $9,000,000
2.25the second year are to develop total
2.26maximum daily load (TMDL) studies and
2.27TMDL implementation plans for waters
2.28listed on the United States Environmental
2.29Protection Agency approved impaired
2.30waters list in accordance with Minnesota
2.31Statutes, chapter 114D. The agency shall
2.32complete an average of ten percent of the
2.33TMDLs each year over the biennium. Of
2.34this amount, $348,000 the first year is to
3.1retest the comprehensive assessment of the
3.2biological conditions of the lower Minnesota
3.3River and its tributaries within the Lower
3.4Minnesota River Major Watershed, as
3.5previously assessed from 1976 to 1992 under
3.6the Minnesota River Assessment Project
3.7(MRAP). The assessment must include the
3.8same fish species sampling at the same 116
3.9locations and the same macroinvertebrate
3.10sampling at the same 41 locations as the
3.11MRAP assessment. The assessment must:
3.12(1) include an analysis of the findings; and
3.13(2) identify factors that limit aquatic life in
3.14the Minnesota River.
3.15Of this amount, $250,000 the first year is
3.16for a pilot project for the development of
3.17total maximum daily load (TMDL) studies
3.18conducted on a watershed basis within
3.19the Buffalo River watershed in order to
3.20protect, enhance, and restore water quality
3.21in lakes, rivers, and streams. The pilot
3.22project shall include all necessary field
3.23work to develop TMDL studies for all
3.24impaired subwatersheds within the Buffalo
3.25River watershed and provide information
3.26necessary to complete reports for most of the
3.27remaining watersheds, including analysis of
3.28water quality data, identification of sources
3.29of water quality degradation and stressors,
3.30load allocation development, development
3.31of reports that provide protection plans
3.32for subwatersheds that meet water quality
3.33standards, and development of reports that
3.34provide information necessary to complete
3.35TMDL studies for subwatersheds that do not
4.1meet water quality standards, but are not
4.2listed as impaired.
4.3(b) $500,000 the first year is for development
4.4of an enhanced TMDL database to manage
4.5and track progress. Of this amount, $63,000
4.6the first year is to promulgate rules. By
4.7November 1, 2010, the commissioner shall
4.8submit a report to the chairs of the house of
4.9representatives and senate committees with
4.10jurisdiction over environment and natural
4.11resources finance on the outcomes achieved
4.12with this appropriation.
4.13(c) $1,500,000 the first year and $3,169,000
4.14the second year are for grants under
4.15Minnesota Statutes, section 116.195, to
4.16political subdivisions for up to 50 percent of
4.17the costs to predesign, design, and implement
4.18capital projects that use storm water or
4.19treated municipal wastewater instead of
4.20groundwater from drinking water aquifers,
4.21in order to demonstrate the beneficial use
4.22of wastewater or storm water, including
4.23the conservation and protection of water
4.24resources. Of this amount, $1,000,000 the
4.25first year is for grants to ethanol plants that
4.26are within one and one-half miles of a city for
4.27improvements that use storm water or reuse
4.28greater than 300,000 gallons of wastewater
4.29per day. This appropriation is available until
4.30spent.
4.31(d) $1,125,000 the first year and $1,125,000
4.32the second year are for groundwater
4.33assessment and drinking water protection to
4.34include:
5.1(1) the installation and sampling of at least
5.230 new monitoring wells;
5.3(2) the analysis of samples from at least 40
5.4shallow monitoring wells each year for the
5.5presence of endocrine disrupting compounds;
5.6and
5.7(3) the completion of at least four to
5.8five groundwater models for TMDL and
5.9watershed plans.
5.10(e) $2,500,000 the first year is for the clean
5.11water partnership program. Priority shall be
5.12given to projects preventing impairments and
5.13degradation of lakes, rivers, streams, and
5.14groundwater in accordance with Minnesota
5.15Statutes, section 114D.20, subdivision 2,
5.16clause (4). Any balance remaining in the first
5.17year does not cancel and is available for the
5.18second year.
5.19(f) $896,000 the first year is to establish
5.20a network of water monitoring sites, to
5.21include at least 20 additional sites, in public
5.22waters adjacent to wastewater treatment
5.23facilities across the state to assess levels of
5.24endocrine-disrupting compounds, antibiotic
5.25compounds, and pharmaceuticals as required
5.26in this article. The data must be placed on
5.27the agency's Web site.
5.28(g) $155,000 the first year is to provide
5.29notification of the potential for coal tar
5.30contamination, establish a storm water
5.31pond inventory schedule, and develop best
5.32management practices for treating and
5.33cleaning up contaminated sediments as
5.34required in this article. $345,000 the second
5.35year is to develop a model ordinance for the
6.1restricted use of undiluted coal tar sealants
6.2and to provide grants to local units of
6.3government for up to 50 percent of the costs
6.4to implement best management practices to
6.5treat or clean up contaminated sediments
6.6in storm water ponds and other waters as
6.7defined under this article. Local governments
6.8must have adopted an ordinance for the
6.9restricted use of undiluted coal tar sealants
6.10in order to be eligible for a grant, unless a
6.11statewide restriction has been implemented.
6.12A grant awarded under this paragraph must
6.13not exceed $100,000.
6.14(h) $350,000 the first year and $400,000
6.15the second year are for a restoration project
6.16in the lower St. Louis River and Duluth
6.17harbor. This appropriation must be matched
6.18by nonstate money at a rate of $2 for every
6.19$1 of state money.
6.20(i) $150,000 the first year and $196,000 the
6.21second year are for grants to the Red River
6.22Watershed Management Board to enhance
6.23and expand existing river watch activities in
6.24the Red River of the North. The Red River
6.25Watershed Management Board shall provide
6.26a report that includes formal evaluation
6.27results from the river watch program to the
6.28commissioners of education and the Pollution
6.29Control Agency and to the legislative natural
6.30resources finance and policy committees
6.31and K-12 finance and policy committees by
6.32February 15, 2011.
6.33(j) $200,000 the first year and $300,000 the
6.34second year are for coordination with the
6.35state of Wisconsin and the National Park
7.1Service on comprehensive water monitoring
7.2and phosphorus reduction activities in the
7.3Lake St. Croix portion of the St. Croix
7.4River. The Pollution Control Agency
7.5shall work with the St. Croix Basin Water
7.6Resources Planning Team and the St. Croix
7.7River Association in implementing the
7.8water monitoring and phosphorus reduction
7.9activities. This appropriation is available
7.10to the extent matched by nonstate sources.
7.11Money not matched by November 15, 2010,
7.12cancels for this purpose and is available for
7.13the purposes of paragraph (a).
7.14(k) $7,500,000 the first year and $7,500,000
7.15the second year are for completion of 20
7.16percent of the needed statewide assessments
7.17of surface water quality and trends. Of this
7.18amount, $175,000 the first year and $200,000
7.19the second year are for monitoring and
7.20analyzing endocrine disruptors in surface
7.21waters.
7.22(l) $100,000 the first year and $150,000
7.23the second year are for civic engagement
7.24in TMDL development. The agency shall
7.25develop a plan for expenditures under
7.26this paragraph. The agency shall give
7.27consideration to civic engagement proposals
7.28from basin or sub-basin organizations,
7.29including the Mississippi Headwaters Board,
7.30the Minnesota River Joint Powers Board,
7.31Area II Minnesota River Basin Projects,
7.32and the Red River Basin Commission.
7.33By November 15, 2009, the plan shall be
7.34submitted to the house and senate chairs
7.35and ranking minority members of the
7.36environmental finance divisions.
8.1(m) $5,000,000 the second year is for
8.2groundwater protection or prevention of
8.3groundwater degradation activities. By
8.4January 15, 2010, the commissioner, in
8.5consultation with the commissioner of
8.6natural resources, the Board of Water and
8.7Soil Resources, and other agencies, shall
8.8submit a report to the chairs of the house of
8.9representatives and senate committees with
8.10jurisdiction over the clean water fund on the
8.11intended use of these funds. The legislature
8.12must approve expenditure of these funds by
8.13law.
8.14Notwithstanding Minnesota Statutes, section
8.1516A.28 , the appropriations encumbered on or
8.16before June 30, 2011, as grants or contracts in
8.17this section are available until June 30, 2013.
8.18EFFECTIVE DATE.This section is effective the day following final enactment."
8.19Renumber the sections in sequence and correct the internal references
8.20Amend the title accordingly