Laws of Minnesota 1993 

                        CHAPTER 186-S.F.No. 697 
           An act relating to water; requiring criteria for water 
          deficiency declarations; prohibiting the use of 
          groundwater for surface water level maintenance; 
          requiring review of water appropriation permits; 
          requiring contingency planning for water shortages; 
          changing water appropriation permit requirements; 
          requiring changes to the metropolitan area water 
          supply plan; requiring reports to the legislature; 
          amending Minnesota Statutes 1992, sections 103G.261; 
          103G.265, subdivision 3; 103G.271, subdivision 7, and 
          by adding subdivisions; 103G.291, by adding a 
          subdivision; 103G.301, subdivision 1; 115.03, 
          subdivision 1; 473.156, subdivision 1; 473.175, 
          subdivision 1; 473.851; and 473.859, subdivisions 3, 
          4, and by adding a subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 103G.261, is 
amended to read: 
    103G.261 [WATER ALLOCATION PRIORITIES.] 
    (a) The commissioner shall adopt rules for allocation of 
waters based on the following priorities for the consumptive 
appropriation and use of water: 
    (1) first priority, domestic water supply, excluding 
industrial and commercial uses of municipal water supply, and 
use for power production that meets the contingency planning 
provisions of section 103G.285, subdivision 6; 
    (2) second priority, a use of water that involves 
consumption of less than 10,000 gallons of water per day; 
    (3) third priority, agricultural irrigation, and processing 
of agricultural products involving consumption in excess of 
10,000 gallons per day; 
    (4) fourth priority, power production in excess of the use 
provided for in the contingency plan developed under section 
103G.285, subdivision 6; and 
    (5) fifth priority:, uses, other than agricultural 
irrigation, processing of agricultural products, and power 
production, involving consumption in excess of 10,000 gallons 
per day and nonessential uses of public water supplies as 
defined in section 103G.291; and 
    (6) sixth priority, nonessential uses. 
    (b) For the purposes of this section, "consumption" means 
water withdrawn from a supply that is lost for immediate further 
use in the area. 
    (c) Appropriation and use of surface water from streams 
during periods of flood flows and high water levels must be 
encouraged subject to consideration of the purposes for use, 
quantities to be used, and the number of persons appropriating 
water. 
    (d) Appropriation and use of surface water from lakes of 
less than 500 acres in surface area must be discouraged. 
    (e) The treatment and reuse of water for nonconsumptive 
uses shall be discouraged encouraged. 
    (f) Diversions of water from the state for use in other 
states or regions of the United States or Canada must be 
discouraged.  
    Sec. 2.  Minnesota Statutes 1992, section 103G.265, 
subdivision 3, is amended to read: 
    Subd. 3.  [CONSUMPTIVE USE OF MORE THAN 2,000,000 GALLONS 
PER DAY.] (a) Except as provided in paragraph (b), a water use 
permit or a plan that requires a permit or the commissioner's 
approval, involving a consumptive use of more than 2,000,000 
gallons per day average in a 30-day period, may not be granted 
or approved until:  
    (1) a determination is made by the commissioner that the 
water remaining in the basin of origin will be adequate to meet 
the basin's water resources needs during the specified life of 
the consumptive use; and 
    (2) approval of the consumptive use is given by the 
legislature. 
    (b) Legislative approval under paragraph (a), clause (2), 
is not required for a consumptive use in excess of 2,000,000 
gallons per day average in a 30-day period for:  
    (1) a domestic water supply, excluding industrial and 
commercial uses of a municipal water supply; 
    (2) agricultural irrigation and processing of agricultural 
products; 
    (3) construction and mineland dewatering; and 
    (4) pollution abatement or remediation; and 
    (5) fish and wildlife enhancement projects using surface 
water sources.  
    Sec. 3.  Minnesota Statutes 1992, section 103G.271, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [MAINTENANCE OF SURFACE WATER LEVELS.] Except as 
provided in subdivision 5, paragraph (c), the commissioner 
shall, by January 31, 1994, revoke all existing permits, and may 
not issue new permits, for the appropriation or use of 
groundwater in excess of 10,000,000 gallons per year for the 
primary purpose of maintaining or increasing surface water 
levels in the seven-county metropolitan area and in other areas 
of concern as determined by the commissioner.  This subdivision 
does not apply until January 1, 1998, to a municipality that, by 
January 1, 1994, submits a plan acceptable to the commissioner 
for maintaining or increasing surface water levels using sources 
other than groundwater.  
     Sec. 4.  Minnesota Statutes 1992, section 103G.271, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [PAYMENT OF FEES FOR PAST UNPERMITTED 
APPROPRIATIONS.] An entity that appropriates water without a 
required permit under subdivision 1 must pay the applicable 
water use permit processing fee specified in subdivision 6 for 
the period during which the unpermitted appropriation occurred.  
This fee is in addition to any other fee or penalty assessed. 
    Sec. 5.  Minnesota Statutes 1992, section 103G.271, 
subdivision 7, is amended to read: 
    Subd. 7.  [TRANSFER OF PERMIT.] A water use permit may be 
transferred to a successive owner of real property if the 
permittee conveys the real property where the source of water is 
located.  The new owner must notify the commissioner immediately 
after a water use permit is transferred under this section the 
conveyance and request transfer of the permit.  
    Sec. 6.  Minnesota Statutes 1992, section 103G.291, is 
amended by adding a subdivision to read: 
    Subd. 3.  [EMERGENCY PLANS; DEMAND REDUCTION.] (a) Every 
public water supplier serving more than 1,000 people must submit 
an emergency and conservation plan to the commissioner for 
approval by January 1, 1996.  The plan must address supply and 
demand reduction measures and allocation priorities and must 
identify alternative sources of water for use in an emergency.  
Public water suppliers must update the plan and submit it to the 
commissioner for approval every ten years.  
    (b) Public water suppliers serving more than 1,000 people 
must employ water use demand reduction measures before 
requesting approval from the commissioner of health under 
section 144.383, paragraph (a), to construct a public water 
supply well or requesting an increase in the authorized volume 
of appropriation.  Demand reduction measures must include 
evaluation of conservation rate structures and a public 
education program that may include a toilet and showerhead 
retrofit program.  
    (c) Public water suppliers serving more than 1,000 people 
must submit records that indicate the number of connections and 
amount of use by customer category and volume of water 
unaccounted for with the annual report of water use required 
under section 103G.281, subdivision 3. 
     (d) For the purposes of this subdivision, "public water 
supplier" means an entity that owns, manages, or operates a 
public water supply, as defined in section 144.382, subdivision 
4. 
    Sec. 7.  Minnesota Statutes 1992, section 103G.301, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPLICATION DOCUMENTATION.] (a) An 
application for a permit must be accompanied by: 
    (1) maps, plans, and specifications describing the proposed 
appropriation and use of waters; 
    (2) the changes, additions, repairs, or abandonment 
proposed to be made; 
    (3) the public water waters of the state affected; and 
    (4) other data the commissioner may require. 
    (b) The commissioner may require a statement of the effect 
the actions proposed in the permit application will have on the 
environment, including: 
    (1) anticipated changes in water and related land 
resources; 
    (2) unavoidable but anticipated detrimental effects; and 
    (3) alternatives to the actions proposed in the 
permit application, including conservation measures to improve 
water use efficiencies and reduce water demand.  
    Sec. 8.  Minnesota Statutes 1992, section 115.03, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERALLY.] The agency is hereby given and 
charged with the following powers and duties: 
    (a) To administer and enforce all laws relating to the 
pollution of any of the waters of the state; 
    (b) To investigate the extent, character, and effect of the 
pollution of the waters of this state and to gather data and 
information necessary or desirable in the administration or 
enforcement of pollution laws, and to make such classification 
of the waters of the state as it may deem advisable; 
    (c) To establish and alter such reasonable pollution 
standards for any waters of the state in relation to the public 
use to which they are or may be put as it shall deem necessary 
for the purposes of this chapter and, with respect to the 
pollution of waters of the state, chapter 116; 
    (d) To encourage waste treatment, including advanced waste 
treatment, instead of stream low-flow augmentation for dilution 
purposes to control and prevent pollution; 
    (e) To adopt, issue, reissue, modify, deny, or revoke, 
enter into or enforce reasonable orders, permits, variances, 
standards, rules, schedules of compliance, and stipulation 
agreements, under such conditions as it may prescribe, in order 
to prevent, control or abate water pollution, or for the 
installation or operation of disposal systems or parts thereof, 
or for other equipment and facilities; 
     (1) Requiring the discontinuance of the discharge of 
sewage, industrial waste or other wastes into any waters of the 
state resulting in pollution in excess of the applicable 
pollution standard established under this chapter; 
     (2) Prohibiting or directing the abatement of any discharge 
of sewage, industrial waste, or other wastes, into any waters of 
the state or the deposit thereof or the discharge into any 
municipal disposal system where the same is likely to get into 
any waters of the state in violation of this chapter and, with 
respect to the pollution of waters of the state, chapter 116, or 
standards or rules promulgated or permits issued pursuant 
thereto, and specifying the schedule of compliance within which 
such prohibition or abatement must be accomplished; 
     (3) Prohibiting the storage of any liquid or solid 
substance or other pollutant in a manner which does not 
reasonably assure proper retention against entry into any waters 
of the state that would be likely to pollute any waters of the 
state; 
     (4) Requiring the construction, installation, maintenance, 
and operation by any person of any disposal system or any part 
thereof, or other equipment and facilities, or the 
reconstruction, alteration, or enlargement of its existing 
disposal system or any part thereof, or the adoption of other 
remedial measures to prevent, control or abate any discharge or 
deposit of sewage, industrial waste or other wastes by any 
person; 
     (5) Establishing, and from time to time revising, standards 
of performance for new sources taking into consideration, among 
other things, classes, types, sizes, and categories of sources, 
processes, pollution control technology, cost of achieving such 
effluent reduction, and any nonwater quality environmental 
impact and energy requirements.  Said standards of performance 
for new sources shall encompass those standards for the control 
of the discharge of pollutants which reflect the greatest degree 
of effluent reduction which the agency determines to be 
achievable through application of the best available 
demonstrated control technology, processes, operating methods, 
or other alternatives, including, where practicable, a standard 
permitting no discharge of pollutants.  New sources shall 
encompass buildings, structures, facilities, or installations 
from which there is or may be the discharge of pollutants, the 
construction of which is commenced after the publication by the 
agency of proposed rules prescribing a standard of performance 
which will be applicable to such source.  Notwithstanding any 
other provision of the law of this state, any point source the 
construction of which is commenced after May 20, 1973, and which 
is so constructed as to meet all applicable standards of 
performance for new sources shall, consistent with and subject 
to the provisions of section 306(d) of the Amendments of 1972 to 
the Federal Water Pollution Control Act, not be subject to any 
more stringent standard of performance for new sources during a 
ten-year period beginning on the date of completion of such 
construction or during the period of depreciation or 
amortization of such facility for the purposes of section 167 or 
169, or both, of the Federal Internal Revenue Code of 1954, 
whichever period ends first.  Construction shall encompass any 
placement, assembly, or installation of facilities or equipment, 
including contractual obligations to purchase such facilities or 
equipment, at the premises where such equipment will be used, 
including preparation work at such premises; 
     (6) Establishing and revising pretreatment standards to 
prevent or abate the discharge of any pollutant into any 
publicly owned disposal system, which pollutant interferes with, 
passes through, or otherwise is incompatible with such disposal 
system; 
     (7) Requiring the owner or operator of any disposal system 
or any point source to establish and maintain such records, make 
such reports, install, use, and maintain such monitoring 
equipment or methods, including where appropriate biological 
monitoring methods, sample such effluents in accordance with 
such methods, at such locations, at such intervals, and in such 
a manner as the agency shall prescribe, and providing such other 
information as the agency may reasonably require; 
     (8) Notwithstanding any other provision of this chapter, 
and with respect to the pollution of waters of the state, 
chapter 116, requiring the achievement of more stringent 
limitations than otherwise imposed by effluent limitations in 
order to meet any applicable water quality standard by 
establishing new effluent limitations, based upon section 
115.01, subdivision 13, clause (b), including alternative 
effluent control strategies for any point source or group of 
point sources to insure the integrity of water quality 
classifications, whenever the agency determines that discharges 
of pollutants from such point source or sources, with the 
application of effluent limitations required to comply with any 
standard of best available technology, would interfere with the 
attainment or maintenance of the water quality classification in 
a specific portion of the waters of the state.  Prior to 
establishment of any such effluent limitation, the agency shall 
hold a public hearing to determine the relationship of the 
economic and social costs of achieving such limitation or 
limitations, including any economic or social dislocation in the 
affected community or communities, to the social and economic 
benefits to be obtained and to determine whether or not such 
effluent limitation can be implemented with available technology 
or other alternative control strategies.  If a person affected 
by such limitation demonstrates at such hearing that, whether or 
not such technology or other alternative control strategies are 
available, there is no reasonable relationship between the 
economic and social costs and the benefits to be obtained, such 
limitation shall not become effective and shall be adjusted as 
it applies to such person; 
    (9) Modifying, in its discretion, any requirement or 
limitation based upon best available technology with respect to 
any point source for which a permit application is filed after 
July 1, 1977, upon a showing by the owner or operator of such 
point source satisfactory to the agency that such modified 
requirements will represent the maximum use of technology within 
the economic capability of the owner or operator and will result 
in reasonable further progress toward the elimination of the 
discharge of pollutants; and 
    (10) Requiring that applicants for wastewater discharge 
permits evaluate in their applications the potential reuses of 
the discharged wastewater; 
    (f) To require to be submitted and to approve plans and 
specifications for disposal systems or point sources, or any 
part thereof and to inspect the construction thereof for 
compliance with the approved plans and specifications thereof; 
    (g) To prescribe and alter rules, not inconsistent with 
law, for the conduct of the agency and other matters within the 
scope of the powers granted to and imposed upon it by this 
chapter and, with respect to pollution of waters of the state, 
in chapter 116, provided that every rule affecting any other 
department or agency of the state or any person other than a 
member or employee of the agency shall be filed with the 
secretary of state; 
    (h) To conduct such investigations, issue such notices, 
public and otherwise, and hold such hearings as are necessary or 
which it may deem advisable for the discharge of its duties 
under this chapter and, with respect to the pollution of waters 
of the state, under chapter 116, including, but not limited to, 
the issuance of permits, and to authorize any member, employee, 
or agent appointed by it to conduct such investigations or, 
issue such notices and hold such hearings; 
     (i) For the purpose of water pollution control planning by 
the state and pursuant to the Federal Water Pollution Control 
Act, as amended, to establish and revise planning areas, adopt 
plans and programs and continuing planning processes, including, 
but not limited to, basin plans and areawide waste treatment 
management plans, and to provide for the implementation of any 
such plans by means of, including, but not limited to, 
standards, plan elements, procedures for revision, 
intergovernmental cooperation, residual treatment process waste 
controls, and needs inventory and ranking for construction of 
disposal systems; 
     (j) To train water pollution control personnel, and charge 
such fees therefor as are necessary to cover the agency's 
costs.  All such fees received shall be paid into the state 
treasury and credited to the pollution control agency training 
account; 
     (k) To impose as additional conditions in permits to 
publicly owned disposal systems appropriate measures to insure 
compliance by industrial and other users with any pretreatment 
standard, including, but not limited to, those related to toxic 
pollutants, and any system of user charges ratably as is hereby 
required under state law or said Federal Water Pollution Control 
Act, as amended, or any regulations or guidelines promulgated 
thereunder; 
     (l) To set a period not to exceed five years for the 
duration of any National Pollutant Discharge Elimination System 
permit; 
     (m) To require each governmental subdivision identified as 
a permittee for a wastewater treatment works to annually 
evaluate the condition of its existing system and identify 
future capital improvements that will be needed to attain or 
maintain compliance with a national pollutant discharge 
elimination system or state disposal system permit; and 
     (n) To train individual sewage treatment system personnel, 
including persons who design, construct, install, inspect, 
service, and operate individual sewage treatment systems, and 
charge fees as necessary to pay the agency's costs.  All fees 
received must be paid into the state treasury and credited to 
the agency's training account.  Money in the account is 
appropriated to the agency to pay expenses related to training. 
The information required in clause (m) must be submitted 
annually to the commissioner on a form provided by the 
commissioner.  The commissioner shall provide technical 
assistance if requested by the governmental subdivision. 
    Sec. 9.  Minnesota Statutes 1992, section 473.156, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PLAN COMPONENTS.] The metropolitan council 
shall develop a short-term and long-term plan for existing and 
expected water use and supply in the metropolitan area.  The 
plan shall be submitted to and reviewed by the commissioner of 
natural resources for consistency with the statewide drought 
plan under section 103G.293.  At a minimum, the plans must: 
    (1) update the data and information on water supply and use 
within the metropolitan area and develop a water use and 
availability data base; 
    (2) identify and evaluate alternative courses of action, 
including water conservation initiatives and economic 
alternatives, in case of drought or contamination conditions; 
    (3) develop regional surface water and use projection 
models for resource evaluation; 
    (4) recommend long-term approaches to resolving problems 
that may develop because of water use and supply with 
consideration given to problems that occur outside of the 
metropolitan area, but which have an effect within the area; and 
    (4) (5) be consistent with the statewide drought plan under 
section 103G.293. 
    Sec. 10.  Minnesota Statutes 1992, section 473.175, 
subdivision 1, is amended to read: 
    Subdivision 1.  The council shall review the comprehensive 
plans of local governmental units and the capital improvement 
programs of school districts, prepared and submitted pursuant to 
Laws 1976, chapter 127, sections 1 to 23, to determine their 
compatibility with each other and conformity with metropolitan 
system plans.  The council shall review and comment on the 
apparent consistency of the comprehensive plans and capital 
improvement programs with other adopted chapters plans of the 
metropolitan development guide council.  The council may require 
a local governmental unit to modify any comprehensive plan or 
part thereof which may have a substantial impact on or contain a 
substantial departure from metropolitan system plans. 
    Sec. 11.  Minnesota Statutes 1992, section 473.851, is 
amended to read: 
    473.851 [LEGISLATIVE FINDINGS AND PURPOSE.] 
    The legislature finds and declares that the local 
governmental units within the metropolitan area are 
interdependent, that the growth and patterns of urbanization 
within the area create the need for additional state, 
metropolitan and local public services and facilities and 
increase the danger of air and water pollution and water 
shortages, and that developments in one local governmental unit 
may affect the provision of regional capital improvements for 
sewers, transportation, airports, water supply, and regional 
recreation open space.  Since problems of urbanization and 
development transcend local governmental boundaries, there is a 
need for the adoption of coordinated plans, programs and 
controls by all local governmental units and school districts in 
order to protect the health, safety and welfare of the residents 
of the metropolitan area and to ensure coordinated, orderly and 
economic development.  Therefore, it is the purpose of sections 
462.355, subdivision 4, 473.175, and 473.851 to 473.871 to (1) 
establish requirements and procedures to accomplish 
comprehensive local planning with land use controls consistent 
with planned, orderly and staged development and the 
metropolitan system plans, and (2) to provide assistance to 
local governmental units and school districts within the 
metropolitan area for the preparation of plans and official 
controls appropriate for their areas and consistent with 
metropolitan system plans. 
    Sec. 12.  Minnesota Statutes 1992, section 473.859, 
subdivision 3, is amended to read: 
    Subd. 3.  [PUBLIC FACILITIES PLAN.] A public facilities 
plan shall describe the character, location, timing, sequence, 
function, use and capacity of existing and future public 
facilities of the local governmental unit.  A public facilities 
plan must be in at least such detail as may be necessary to 
establish existing or potential effects on or departures from 
metropolitan system plans and to protect metropolitan system 
plans.  A public facilities plan shall contain at least the 
following parts: 
    (a) (1) a transportation plan describing, designating and 
scheduling the location, extent, function and capacity of 
existing and proposed local public and private transportation 
services and facilities; 
    (b) (2) a sewer policy plan describing, designating and 
scheduling the areas to be sewered by the public system, the 
existing and planned capacities of the public system, the 
standards and conditions under which the installation of private 
sewer systems will be permitted, and to the extent practicable, 
the areas not suitable for public or private systems because of 
public health, safety and welfare considerations; 
    (c) (3) a parks and open space plan describing, designating 
and scheduling the existing and proposed parks and recreation 
open spaces within the jurisdiction.; and 
    (4) a water supply plan including: 
    (i) a description of the existing water supply system, 
including the source of water, well and treatment plant 
locations, and major supply lines; an inventory of commercial 
and industrial users; an indication of the community's intent to 
make future changes or additions to the system, including 
projections for population and industrial and commercial use and 
the methods by which this growth will be served; 
    (ii) a statement of the community's objectives, policies, 
and standards for operating the water supply system; 
    (iii) a conservation program that contains the goals of the 
program, demand and supply conservation techniques to be used, 
an evaluation of pricing methods that could be used to reduce 
demand, the conditions under which conservation actions would 
occur, a process for reducing nonessential uses according to the 
priority system under section 103G.261, and the education 
program that will be used to inform the public of the need to 
conserve and the methods available to achieve conservation; 
    (iv) an emergency preparedness or contingency plan, as 
described in section 103G.291, subdivision 3; 
    (v) an indication of the possibility for joint efforts with 
neighboring communities or other public entities for sharing 
water sources and treatment, interconnection for routine or 
emergency supply, pursuit of alternative supplies, and water 
source protection; 
    (vi) a statement of the water supply problems that the 
community experiences or expects to experience and any proposed 
solutions, especially those that would impact other communities 
or the region; and 
    (vii) a wellhead protection plan prepared in accordance 
with rules adopted by the commissioner of health under section 
103I.101, subdivision 5, clause (9). 
    Sec. 13.  Minnesota Statutes 1992, section 473.859, 
subdivision 4, is amended to read: 
    Subd. 4.  [IMPLEMENTATION PROGRAM.] An implementation 
program shall describe public programs, fiscal devices and other 
specific actions to be undertaken in stated sequence to 
implement the comprehensive plan and ensure conformity with 
metropolitan system plans.  An implementation program must be in 
at least such detail as may be necessary to establish existing 
or potential effects on or departures from metropolitan system 
plans and to protect metropolitan system plans.  An 
implementation program shall contain at least the following 
parts: 
    (a) (1) A description of official controls, addressing at 
least the matters of zoning, subdivision, water supply, and 
private sewer systems, and a schedule for the preparation, 
adoption, and administration of such controls.; 
    (b) (2) A capital improvement program for transportation, 
sewers, parks, water supply, and open space facilities.; and 
    (c) (3) A housing implementation program, including 
official controls to implement the housing element of the land 
use plan, which will provide sufficient existing and new housing 
to meet the local unit's share of the metropolitan area need for 
low and moderate income housing. 
    Sec. 14.  Minnesota Statutes 1992, section 473.859, is 
amended by adding a subdivision to read: 
    Subd. 6.  [PLAN REVIEW.] The council shall, by January 1, 
1994, prepare guidelines for the preparation of the water supply 
plans required in subdivision 3, clause (4).  The plans must be 
submitted to the council by January 1, 1996.  The council shall 
review the plans under section 473.175, subdivision 1, after 
submitting them to affected counties that have adopted 
groundwater plans under section 103B.255 for their review and 
comment.  
    Sec. 15.  [REPORTS TO LEGISLATURE.] 
    (a) The metropolitan council, the commissioner of natural 
resources, and the commissioner of agriculture shall jointly 
prepare an emergency response program for the Mississippi river 
and shall report to the appropriate committees and commissions 
of the legislature by January 1, 1996.  The program must address 
accidental spills, installation of a contaminant detection 
system, implementation of emergency response and cleanup 
measures, and cooperation of jurisdictions affecting and 
affected by the river. 
    (b) The metropolitan council and appropriate state agencies 
shall report to the appropriate committees and commissions of 
the legislature by March 1, 1996, on the status of 
implementation of sections 8 to 14 and may propose methods of 
further financing and implementation. 
    Sec. 16.  [INSTRUCTIONS TO REVISOR.] 
    In the next publication of Minnesota Statutes, the revisor 
of statutes shall change "public waters" to "waters of the 
state" in sections 103G.125, subdivision 3; 103G.251, 
subdivisions 1 and 2; 103G.255; 103G.295, subdivisions 1 and 2; 
and 103G.305, subdivision 2, clause (1). 
    Presented to the governor May 12, 1993 
    Signed by the governor May 14, 1993, 10:01 p.m.