Bill Text: MN SF2016 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Water use permit authority, administrative penalties and water appropriation provisions modifications
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2014-03-24 - Comm report: To pass and re-referred to Finance [SF2016 Detail]
Download: Minnesota-2013-SF2016-Engrossed.html
1.2relating to natural resources; modifying water appropriation provisions;
1.3providing for administrative penalties for water appropriation violations;
1.4amending Minnesota Statutes 2012, sections 103G.251; 103G.271, subdivisions
1.55, 6; 103G.281, subdivision 1, by adding a subdivision; 103G.301, subdivision 2;
1.6proposing coding for new law in Minnesota Statutes, chapter 103G.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 103G.251, is amended to read:
1.9103G.251 INVESTIGATION OF ACTIVITIESWITHOUT PERMIT
1.10 AFFECTING WATERS OF THE STATE.
1.11 Subdivision 1. Investigations. If the commissioner determines that an investigation
1.12is in the public interest, the commissioner may investigate and monitor activities being
1.13conducted with or without a permit that may affect waters of the state.
1.14 Subd. 2. Findings and order. (a) With or without a public hearing, the
1.15commissioner may make findings and issue orders related to activities being conducted
1.16without a permit that affect waters of the state as otherwise authorized under this chapter.
1.17(b) A copy of the findings and order must be served on the person to whom the
1.18order is issued.
1.19(c) If the commissioner issues the findings and order without a hearing, the person to
1.20whom the order is issued may file a demand for a hearing with the commissioner. The
1.21demand for a hearing must be accompanied by the bond as provided in section103G.311,
1.22subdivision 6 , and the hearing must be held in the same manner and with the same
1.23requirements as a hearing held under section103G.311, subdivision 5 . The demand for
1.24a hearing and bond must be filed by 30 days after the person is served with a copy of
1.25the commissioner's order.
2.1(d) The hearing must be conducted as a contested case hearing under chapter 14.
2.2(e) If the person to whom the order is addressed does not demand a hearing or
2.3demands a hearing but fails to file the required bond:
2.4(1) the commissioner's order becomes final at the end of 30 days after the person is
2.5served with the order; and
2.6(2) the person may not appeal the order.
2.7(f) An order of the commissioner may be recorded or filed by the commissioner in
2.8the office of the county recorder or registrar of titles, as appropriate, in the county where
2.9the real property is located as a deed restriction on the property that runs with the land
2.10and is binding on the owners, successors, and assigns until the conditions of the order
2.11are met or the order is rescinded.
2.12 Sec. 2. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:
2.13 Subd. 5. Prohibition on once-through water use permits. (a) Except as provided
2.14in paragraph (c), the commissioner may not, after December 31, 1990, issue a water
2.15use permit to increase the volume of appropriation from a groundwater source for a
2.16once-through cooling systemusing in excess of 5,000,000 gallons annually.
2.17(b) Except as provided in paragraph (c), once-through system water use permits
2.18using in excess of 5,000,000 gallons annually, must be terminated by the commissioner
2.19by the end of their design life but not later than December 31, 2010, unless the discharge
2.20is into a public water basin within a nature preserve approved by the commissioner and
2.21established prior to January 1, 2001. Existing once-through systems must not be expanded
2.22and are required to convert to water efficient alternatives within the design life of existing
2.23equipment.
2.24(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of
2.25the commissioners of health and the Pollution Control Agency, may issue once-through
2.26system water use permits on an annual basis for aquifer storage and recovery systems that
2.27return all once-through system water to the source aquifer. Water use permit processing
2.28fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph,
2.29including any reuse of water returned to the source aquifer.
2.30EFFECTIVE DATE.This section is effective January 1, 2015.
2.31 Sec. 3. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
2.32 Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
2.33(b) to(f) (g), a water use permit processing fee must be prescribed by the commissioner in
2.34accordance with the schedule of fees in this subdivision for each water use permit in force
3.1at any time during the year. Fees collected under this paragraph are credited to the water
3.2management account in the natural resources fund. The schedule is as follows, with the
3.3stated fee in each clause applied to the total amount appropriated:
3.4 (1) $140 for amounts not exceeding 50,000,000 gallons per year;
3.5 (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
3.6than 100,000,000 gallons per year;
3.7 (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
3.8than 150,000,000 gallons per year;
3.9 (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
3.10less than 200,000,000 gallons per year;
3.11 (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
3.12than 250,000,000 gallons per year;
3.13 (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
3.14less than 300,000,000 gallons per year;
3.15 (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
3.16than 350,000,000 gallons per year;
3.17 (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
3.18less than 400,000,000 gallons per year;
3.19 (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
3.20than 450,000,000 gallons per year;
3.21 (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
3.22less than 500,000,000 gallons per year; and
3.23 (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
3.24 (b) For once-through cooling systems, a water use processing fee must be prescribed
3.25by the commissioner in accordance with the following schedule of fees for each water use
3.26permit in force at any time during the year:
3.27 (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
3.28 (2) for all other users, $420 per 1,000,000 gallons.
3.29 (c) The fee is payable based on the amount of water appropriated during the year
3.30and, except as provided in paragraph (f), the minimum fee is $100.
3.31 (d) For water use processing fees other than once-through cooling systems:
3.32 (1) the fee for a city of the first class may not exceed $250,000 per year;
3.33 (2) the fee for other entities for any permitted use may not exceed:
3.34 (i) $60,000 per year for an entity holding three or fewer permits;
3.35 (ii) $90,000 per year for an entity holding four or five permits; or
3.36 (iii) $300,000 per year for an entity holding more than five permits;
4.1 (3) the fee for agricultural irrigation may not exceed $750 per year;
4.2 (4) the fee for a municipality that furnishes electric service and cogenerates steam
4.3for home heating may not exceed $10,000 for its permit for water use related to the
4.4cogeneration of electricity and steam; and
4.5 (5) no fee is required for a project involving the appropriation of surface water to
4.6prevent flood damage or to remove flood waters during a period of flooding, as determined
4.7by the commissioner.
4.8 (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of
4.9$150 per month or two percent per month, whichever is greater, calculated from the
4.10original due date must be imposed on the unpaid balance of fees remaining 30 days after
4.11the sending of a second notice of fees due. A fee may not be imposed on an agency,
4.12as defined in section16B.01, subdivision 2 , or federal governmental agency holding a
4.13water appropriation permit.
4.14 (f) The minimum water use processing fee for a permit issued for irrigation of
4.15agricultural land is $20 for years in which:
4.16 (1) there is no appropriation of water under the permit; or
4.17 (2) the permit is suspended for more than seven consecutive days between May 1
4.18and October 1.
4.19(g) The commissioner may waive the water use permit processing fee for
4.20installations that use storm water runoff from impervious surfaces. The commissioner
4.21shall consider the following criteria in determining whether to waive the fee: (1) the
4.22extent to which the proposed use directly offsets the use of groundwater; (2) the extent
4.23to which the proposed use does not adversely impact surface waters; (3) the extent to
4.24which the proposed use is consistent with other local watershed and water management
4.25plans or permits; and (4) the extent to which the proposed use implements measures to
4.26minimize the volume of water used.
4.27(g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in
4.28paragraph (a) shall be applied to the volume of water used in each of the months of June,
4.29July, and August that exceeds the volume of water used in January for municipal water
4.30use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
4.31with more than one permit shall be determined based on the total appropriations from all
4.32permits that supply a common distribution system.
4.33 Sec. 4. Minnesota Statutes 2012, section 103G.281, subdivision 1, is amended to read:
4.34 Subdivision 1. Measuring and records required. (a) The state, a political
4.35subdivision of the state, a person, partnership, public or private corporation, or association
5.1may not appropriate or use waters of the state without measuring and keeping a record of
5.2the quantity of water used or appropriated as provided in section103G.271 or
103G.275 .
5.3(b) The records required under this section must be available for inspection at
5.4reasonable times by the commissioner and must be preserved and available for seven years.
5.5 Sec. 5. Minnesota Statutes 2012, section 103G.281, is amended by adding a
5.6subdivision to read:
5.7 Subd. 4. Penalties for noncompliant reporting. (a) The commissioner may
5.8assess penalties for noncompliant reporting of water use information as provided in this
5.9section. The penalty is $300 or two percent of the annual water use permit processing
5.10fee, whichever is greater.
5.11(b) A permit holder, who is categorized for water allocation priority purposes under
5.12section 103G.261, paragraph (a), clauses (2) to (6), with three or more noncompliant
5.13reporting incidents under this subdivision within a five-year period shall have the applicable
5.14water appropriation permit terminated. After 365 days from the date of termination, the
5.15applicant may apply for reinstatement of the permit, subject to the permit application fee.
5.16Termination under this subdivision is exempt from section 103G.271, subdivision 3.
5.17 Sec. 6. [103G.299] ADMINISTRATIVE PENALTIES.
5.18 Subdivision 1. Authority to issue penalty orders. The commissioner may issue
5.19an order requiring violations to be corrected and administratively assessing monetary
5.20penalties for violations of sections 103G.255 to 103G.298, any rules adopted under those
5.21sections, and any standards, limitations, or conditions established in a department permit
5.22for water appropriation. The order must be issued as provided in this section and in
5.23accordance with the plan prepared under subdivision 12.
5.24 Subd. 2. Amount of penalty; considerations. (a) The commissioner may issue
5.25orders assessing administrative penalties based on potential for harm and deviation from
5.26compliance. For a violation that presents: (1) a minor potential for harm and deviation
5.27from compliance, the penalty will be no more than $1,000; (2) a moderate potential for
5.28harm and deviation from compliance, the penalty will be no more than $10,000; and (3)
5.29a severe potential for harm and deviation from compliance, the penalty will be no more
5.30than $20,000.
5.31(b) In determining the amount of a penalty the commissioner may consider:
5.32(1) the gravity of the violation, including potential for, or real, damage to the public
5.33interest or natural resources of the state;
5.34(2) the history of past violations;
6.1(3) the number of violations;
6.2(4) the economic benefit gained by the person by allowing or committing the
6.3violation based on data from local or state bureaus or educational institutions; and
6.4(5) other factors as justice may require, if the commissioner specifically identifies
6.5the additional factors in the commissioner's order.
6.6(c) For a violation after an initial violation, including a continuation of the initial
6.7violation, the commissioner must, in determining the amount of a penalty, consider the
6.8factors in paragraph (b) and the:
6.9(1) similarity of the most recent previous violation and the violation to be penalized;
6.10(2) time elapsed since the last violation;
6.11(3) number of previous violations; and
6.12(4) response of the person to the most recent previous violation identified.
6.13 Subd. 3. Contents of order. An order assessing an administrative penalty under
6.14this section must include:
6.15(1) a concise statement of the facts alleged to constitute a violation;
6.16(2) a reference to the section of the statute, rule, order, or term or condition of
6.17a permit that has been violated;
6.18(3) a statement of the amount of the administrative penalty to be imposed and the
6.19factors upon which the penalty is based; and
6.20(4) a statement of the person's right to review of the order.
6.21 Subd. 4. Corrective order. (a) The commissioner may issue an order assessing a
6.22penalty and requiring the violations cited in the order to be corrected within a time period
6.23specified by the commissioner.
6.24(b) The person to whom the order was issued must provide information to the
6.25commissioner before the 31st day after the order was received demonstrating that the
6.26violation has been corrected or that appropriate steps toward correcting the violation
6.27have been taken.
6.28(c) The commissioner must determine whether the violation has been corrected and
6.29notify the person subject to the order of the commissioner's determination.
6.30 Subd. 5. Penalty. (a) Unless the person requests review of the order under
6.31subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:
6.32(1) on the 31st day after the order was received, if the person subject to the order
6.33fails to provide information to the commissioner showing that the violation has been
6.34corrected or that appropriate steps have been taken toward correcting the violation; or
6.35(2) on the 20th day after the person receives the commissioner's determination under
6.36subdivision 4, paragraph (c), if the person subject to the order has provided information
7.1to the commissioner that the commissioner determines is not sufficient to show that the
7.2violation has been corrected or that appropriate steps have been taken toward correcting
7.3the violation.
7.4(b) The penalty is due by 31 days after the order was received, unless review of the
7.5order under subdivision 6 or 7 has been sought.
7.6(c) Interest at the rate established in section 549.09 begins to accrue on penalties
7.7under this subdivision on the 31st day after the order with the penalty was received.
7.8 Subd. 6. Expedited administrative hearing. (a) Within 30 days after receiving
7.9an order or within 20 days after receiving notice that the commissioner has determined
7.10that a violation has not been corrected or appropriate steps have not been taken, the
7.11person subject to an order under this section may request an expedited hearing, using
7.12the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the
7.13commissioner's determination. The hearing request must specifically state the reasons
7.14for seeking review of the order. The person to whom the order is directed and the
7.15commissioner are the parties to the expedited hearing. The commissioner must notify the
7.16person to whom the order is directed of the time and place of the hearing at least 20 days
7.17before the hearing. The expedited hearing must be held within 30 days after a request for
7.18hearing has been filed with the commissioner unless the parties agree to a later date.
7.19(b) All written arguments must be submitted within ten days following the close of
7.20the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to
7.211400.8612, as modified by this subdivision.
7.22(c) The administrative law judge must issue a report making recommendations about
7.23the commissioner's action to the commissioner within 30 days following the close of the
7.24record. The administrative law judge may not recommend a change in the amount of the
7.25proposed penalty unless the administrative law judge determines that, based on the factors
7.26in subdivision 2, the amount of the penalty is unreasonable.
7.27(d) If the administrative law judge makes a finding that the hearing was requested
7.28solely for purposes of delay or that the hearing request was frivolous, the commissioner
7.29may add to the amount of the penalty the costs charged to the department by the Office of
7.30Administrative Hearings for the hearing.
7.31(e) If a hearing has been held, the commissioner may not issue a final order until at
7.32least five days after receipt of the report of the administrative law judge. The person to
7.33whom an order is issued may, within those five days, comment to the commissioner on the
7.34recommendations, and the commissioner must consider the comments. The final order
7.35may be appealed in the manner provided in sections 14.63 to 14.69.
8.1(f) If a hearing has been held and a final order issued by the commissioner, the
8.2penalty must be paid by 30 days after the date the final order is received unless review of
8.3the final order is requested under sections 14.63 to 14.69. If review is not requested or the
8.4order is reviewed and upheld, the amount due is the penalty, together with interest accruing
8.5from 31 days after the original order was received at the rate established in section 549.09.
8.6 Subd. 7. Mediation. In addition to review under subdivision 6, the commissioner
8.7may enter into mediation concerning an order issued under this section if the commissioner
8.8and the person to whom the order is issued both agree to mediation.
8.9 Subd. 8. Penalties due and payable. The commissioner may enforce penalties that
8.10are due and payable under this section in any manner provided by law for the collection
8.11of debts.
8.12 Subd. 9. Revocation and suspension of permit. If a person fails to pay a penalty
8.13owed under this section, the commissioner has grounds to revoke a permit or to refuse
8.14to amend a permit or issue a new permit.
8.15 Subd. 10. Cumulative remedy. The authority of the commissioner to issue a
8.16corrective order assessing penalties is in addition to other remedies available under statutory
8.17or common law, except that the state may not seek civil penalties under any other provision
8.18of law for the violations covered by the administrative penalty order. The payment of a
8.19penalty does not preclude the use of other enforcement provisions, under which penalties
8.20are not assessed, in connection with the violation for which the penalty was assessed.
8.21 Subd. 11. Deposit of fees. Fees collected under this section must be credited to the
8.22water management account in the natural resources fund.
8.23 Subd. 12. Plan for use of administrative penalties. The commissioner must
8.24prepare a plan for using the administrative penalty authority in this section. The plan must
8.25include explanations for how the commissioner will determine whether violations are
8.26minor, moderate, or severe. The commissioner must provide a 30-day period for public
8.27comment on the plan. The plan must be finalized within six months after the effective
8.28date of this section.
8.29 Sec. 7. Minnesota Statutes 2012, section 103G.301, subdivision 2, is amended to read:
8.30 Subd. 2. Permit application and notification fees. (a) A fee to defray the costs
8.31of receiving, recording, and processing must be paid for a permit application authorized
8.32under this chapter, except for a general permit application, for each request to amend or
8.33transfer an existing permit, and for a notification to request authorization to conduct a
8.34project under a general permit. Fees established under this subdivision, unless specified in
8.35paragraph (c), shall be compliant with section16A.1285 .
9.1 (b) Proposed projects that require water in excess of 100 million gallons per year
9.2must be assessed fees to recover the costs incurred to evaluate the project and the costs
9.3incurred for environmental review. Fees collected under this paragraph must be credited
9.4to an account in the natural resources fund and are appropriated to the commissioner.
9.5 (c) The fee to apply for a permit to appropriate water, in addition to any fee under
9.6paragraph (b), and for a permit to construct or repair a dam that is subject to dam safety
9.7inspection is $150. The application fee for a permit to work in public waters or to
9.8divert waters for mining must be at least $150, but not more than $1,000. The fee for a
9.9notification to request authorization to conduct a project under a general permit is $100.
9.10(d) A penalty of $300 shall be assessed for each calendar year, up to a maximum of
9.11seven years, in which an unauthorized appropriation of water occurred. A penalty may
9.12not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
9.13governmental agency holding a water appropriation permit. This penalty is in addition to
9.14any other fee or penalty assessed.
9.15 Sec. 8. WATER REUSE REPORT; ENVIRONMENTAL QUALITY BOARD.
9.16By January 15, 2016, the Environmental Quality Board shall report on water reuse
9.17to the chairs and ranking minority members of the senate and house of representatives
9.18committees with jurisdiction over environment and natural resources policy. The report
9.19shall identify barriers to reuse, jurisdictional conflicts, analysis of statutes and rules, and
9.20the development of recommendations to support water reuse and aquifer recharge.
1.3providing for administrative penalties for water appropriation violations;
1.4amending Minnesota Statutes 2012, sections 103G.251; 103G.271, subdivisions
1.55, 6; 103G.281, subdivision 1, by adding a subdivision; 103G.301, subdivision 2;
1.6proposing coding for new law in Minnesota Statutes, chapter 103G.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 103G.251, is amended to read:
1.9103G.251 INVESTIGATION OF ACTIVITIES
1.10 AFFECTING WATERS OF THE STATE.
1.11 Subdivision 1. Investigations. If the commissioner determines that an investigation
1.12is in the public interest, the commissioner may investigate and monitor activities being
1.13conducted with or without a permit that may affect waters of the state.
1.14 Subd. 2. Findings and order. (a) With or without a public hearing, the
1.15commissioner may make findings and issue orders related to activities being conducted
1.16without a permit that affect waters of the state as otherwise authorized under this chapter.
1.17(b) A copy of the findings and order must be served on the person to whom the
1.18order is issued.
1.19(c) If the commissioner issues the findings and order without a hearing, the person to
1.20whom the order is issued may file a demand for a hearing with the commissioner. The
1.21demand for a hearing must be accompanied by the bond as provided in section
1.22subdivision 6
1.23requirements as a hearing held under section
1.24a hearing and bond must be filed by 30 days after the person is served with a copy of
1.25the commissioner's order.
2.1(d) The hearing must be conducted as a contested case hearing under chapter 14.
2.2(e) If the person to whom the order is addressed does not demand a hearing or
2.3demands a hearing but fails to file the required bond:
2.4(1) the commissioner's order becomes final at the end of 30 days after the person is
2.5served with the order; and
2.6(2) the person may not appeal the order.
2.7(f) An order of the commissioner may be recorded or filed by the commissioner in
2.8the office of the county recorder or registrar of titles, as appropriate, in the county where
2.9the real property is located as a deed restriction on the property that runs with the land
2.10and is binding on the owners, successors, and assigns until the conditions of the order
2.11are met or the order is rescinded.
2.12 Sec. 2. Minnesota Statutes 2012, section 103G.271, subdivision 5, is amended to read:
2.13 Subd. 5. Prohibition on once-through water use permits. (a) Except as provided
2.14in paragraph (c), the commissioner may not
2.15use permit to increase the volume of appropriation from a groundwater source for a
2.16once-through cooling system
2.17(b) Except as provided in paragraph (c), once-through system water use permits
2.18using in excess of 5,000,000 gallons annually
2.19
2.20is into a public water basin within a nature preserve approved by the commissioner and
2.21established prior to January 1, 2001. Existing once-through systems must not be expanded
2.22and are required to convert to water efficient alternatives within the design life of existing
2.23equipment.
2.24(c) Notwithstanding paragraphs (a) and (b), the commissioner, with the approval of
2.25the commissioners of health and the Pollution Control Agency, may issue once-through
2.26system water use permits on an annual basis for aquifer storage and recovery systems that
2.27return all once-through system water to the source aquifer. Water use permit processing
2.28fees in subdivision 6, paragraph (a), apply to all water withdrawals under this paragraph,
2.29including any reuse of water returned to the source aquifer.
2.30EFFECTIVE DATE.This section is effective January 1, 2015.
2.31 Sec. 3. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
2.32 Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
2.33(b) to
2.34accordance with the schedule of fees in this subdivision for each water use permit in force
3.1at any time during the year. Fees collected under this paragraph are credited to the water
3.2management account in the natural resources fund. The schedule is as follows, with the
3.3stated fee in each clause applied to the total amount appropriated:
3.4 (1) $140 for amounts not exceeding 50,000,000 gallons per year;
3.5 (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
3.6than 100,000,000 gallons per year;
3.7 (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
3.8than 150,000,000 gallons per year;
3.9 (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
3.10less than 200,000,000 gallons per year;
3.11 (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
3.12than 250,000,000 gallons per year;
3.13 (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
3.14less than 300,000,000 gallons per year;
3.15 (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
3.16than 350,000,000 gallons per year;
3.17 (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
3.18less than 400,000,000 gallons per year;
3.19 (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
3.20than 450,000,000 gallons per year;
3.21 (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
3.22less than 500,000,000 gallons per year; and
3.23 (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
3.24 (b) For once-through cooling systems, a water use processing fee must be prescribed
3.25by the commissioner in accordance with the following schedule of fees for each water use
3.26permit in force at any time during the year:
3.27 (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
3.28 (2) for all other users, $420 per 1,000,000 gallons.
3.29 (c) The fee is payable based on the amount of water appropriated during the year
3.30and, except as provided in paragraph (f), the minimum fee is $100.
3.31 (d) For water use processing fees other than once-through cooling systems:
3.32 (1) the fee for a city of the first class may not exceed $250,000 per year;
3.33 (2) the fee for other entities for any permitted use may not exceed:
3.34 (i) $60,000 per year for an entity holding three or fewer permits;
3.35 (ii) $90,000 per year for an entity holding four or five permits; or
3.36 (iii) $300,000 per year for an entity holding more than five permits;
4.1 (3) the fee for agricultural irrigation may not exceed $750 per year;
4.2 (4) the fee for a municipality that furnishes electric service and cogenerates steam
4.3for home heating may not exceed $10,000 for its permit for water use related to the
4.4cogeneration of electricity and steam; and
4.5 (5) no fee is required for a project involving the appropriation of surface water to
4.6prevent flood damage or to remove flood waters during a period of flooding, as determined
4.7by the commissioner.
4.8 (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of
4.9$150 per month or two percent per month, whichever is greater, calculated from the
4.10original due date must be imposed on the unpaid balance of fees remaining 30 days after
4.11the sending of a second notice of fees due. A fee may not be imposed on an agency,
4.12as defined in section
4.13water appropriation permit.
4.14 (f) The minimum water use processing fee for a permit issued for irrigation of
4.15agricultural land is $20 for years in which:
4.16 (1) there is no appropriation of water under the permit; or
4.17 (2) the permit is suspended for more than seven consecutive days between May 1
4.18and October 1.
4.19(g) The commissioner may waive the water use permit processing fee for
4.20installations that use storm water runoff from impervious surfaces. The commissioner
4.21shall consider the following criteria in determining whether to waive the fee: (1) the
4.22extent to which the proposed use directly offsets the use of groundwater; (2) the extent
4.23to which the proposed use does not adversely impact surface waters; (3) the extent to
4.24which the proposed use is consistent with other local watershed and water management
4.25plans or permits; and (4) the extent to which the proposed use implements measures to
4.26minimize the volume of water used.
4.27
4.28paragraph (a) shall be applied to the volume of water used in each of the months of June,
4.29July, and August that exceeds the volume of water used in January for municipal water
4.30use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
4.31with more than one permit shall be determined based on the total appropriations from all
4.32permits that supply a common distribution system.
4.33 Sec. 4. Minnesota Statutes 2012, section 103G.281, subdivision 1, is amended to read:
4.34 Subdivision 1. Measuring and records required. (a) The state, a political
4.35subdivision of the state, a person, partnership, public or private corporation, or association
5.1may not appropriate or use waters of the state without measuring and keeping a record of
5.2the quantity of water used or appropriated as provided in section
5.3(b) The records required under this section must be available for inspection at
5.4reasonable times by the commissioner and must be preserved and available for seven years.
5.5 Sec. 5. Minnesota Statutes 2012, section 103G.281, is amended by adding a
5.6subdivision to read:
5.7 Subd. 4. Penalties for noncompliant reporting. (a) The commissioner may
5.8assess penalties for noncompliant reporting of water use information as provided in this
5.9section. The penalty is $300 or two percent of the annual water use permit processing
5.10fee, whichever is greater.
5.11(b) A permit holder, who is categorized for water allocation priority purposes under
5.12section 103G.261, paragraph (a), clauses (2) to (6), with three or more noncompliant
5.13reporting incidents under this subdivision within a five-year period shall have the applicable
5.14water appropriation permit terminated. After 365 days from the date of termination, the
5.15applicant may apply for reinstatement of the permit, subject to the permit application fee.
5.16Termination under this subdivision is exempt from section 103G.271, subdivision 3.
5.17 Sec. 6. [103G.299] ADMINISTRATIVE PENALTIES.
5.18 Subdivision 1. Authority to issue penalty orders. The commissioner may issue
5.19an order requiring violations to be corrected and administratively assessing monetary
5.20penalties for violations of sections 103G.255 to 103G.298, any rules adopted under those
5.21sections, and any standards, limitations, or conditions established in a department permit
5.22for water appropriation. The order must be issued as provided in this section and in
5.23accordance with the plan prepared under subdivision 12.
5.24 Subd. 2. Amount of penalty; considerations. (a) The commissioner may issue
5.25orders assessing administrative penalties based on potential for harm and deviation from
5.26compliance. For a violation that presents: (1) a minor potential for harm and deviation
5.27from compliance, the penalty will be no more than $1,000; (2) a moderate potential for
5.28harm and deviation from compliance, the penalty will be no more than $10,000; and (3)
5.29a severe potential for harm and deviation from compliance, the penalty will be no more
5.30than $20,000.
5.31(b) In determining the amount of a penalty the commissioner may consider:
5.32(1) the gravity of the violation, including potential for, or real, damage to the public
5.33interest or natural resources of the state;
5.34(2) the history of past violations;
6.1(3) the number of violations;
6.2(4) the economic benefit gained by the person by allowing or committing the
6.3violation based on data from local or state bureaus or educational institutions; and
6.4(5) other factors as justice may require, if the commissioner specifically identifies
6.5the additional factors in the commissioner's order.
6.6(c) For a violation after an initial violation, including a continuation of the initial
6.7violation, the commissioner must, in determining the amount of a penalty, consider the
6.8factors in paragraph (b) and the:
6.9(1) similarity of the most recent previous violation and the violation to be penalized;
6.10(2) time elapsed since the last violation;
6.11(3) number of previous violations; and
6.12(4) response of the person to the most recent previous violation identified.
6.13 Subd. 3. Contents of order. An order assessing an administrative penalty under
6.14this section must include:
6.15(1) a concise statement of the facts alleged to constitute a violation;
6.16(2) a reference to the section of the statute, rule, order, or term or condition of
6.17a permit that has been violated;
6.18(3) a statement of the amount of the administrative penalty to be imposed and the
6.19factors upon which the penalty is based; and
6.20(4) a statement of the person's right to review of the order.
6.21 Subd. 4. Corrective order. (a) The commissioner may issue an order assessing a
6.22penalty and requiring the violations cited in the order to be corrected within a time period
6.23specified by the commissioner.
6.24(b) The person to whom the order was issued must provide information to the
6.25commissioner before the 31st day after the order was received demonstrating that the
6.26violation has been corrected or that appropriate steps toward correcting the violation
6.27have been taken.
6.28(c) The commissioner must determine whether the violation has been corrected and
6.29notify the person subject to the order of the commissioner's determination.
6.30 Subd. 5. Penalty. (a) Unless the person requests review of the order under
6.31subdivision 6 or 7 before the penalty is due, the penalty in the order is due and payable:
6.32(1) on the 31st day after the order was received, if the person subject to the order
6.33fails to provide information to the commissioner showing that the violation has been
6.34corrected or that appropriate steps have been taken toward correcting the violation; or
6.35(2) on the 20th day after the person receives the commissioner's determination under
6.36subdivision 4, paragraph (c), if the person subject to the order has provided information
7.1to the commissioner that the commissioner determines is not sufficient to show that the
7.2violation has been corrected or that appropriate steps have been taken toward correcting
7.3the violation.
7.4(b) The penalty is due by 31 days after the order was received, unless review of the
7.5order under subdivision 6 or 7 has been sought.
7.6(c) Interest at the rate established in section 549.09 begins to accrue on penalties
7.7under this subdivision on the 31st day after the order with the penalty was received.
7.8 Subd. 6. Expedited administrative hearing. (a) Within 30 days after receiving
7.9an order or within 20 days after receiving notice that the commissioner has determined
7.10that a violation has not been corrected or appropriate steps have not been taken, the
7.11person subject to an order under this section may request an expedited hearing, using
7.12the procedures under Minnesota Rules, parts 1400.8510 to 1400.8612, to review the
7.13commissioner's determination. The hearing request must specifically state the reasons
7.14for seeking review of the order. The person to whom the order is directed and the
7.15commissioner are the parties to the expedited hearing. The commissioner must notify the
7.16person to whom the order is directed of the time and place of the hearing at least 20 days
7.17before the hearing. The expedited hearing must be held within 30 days after a request for
7.18hearing has been filed with the commissioner unless the parties agree to a later date.
7.19(b) All written arguments must be submitted within ten days following the close of
7.20the hearing. The hearing must be conducted under Minnesota Rules, parts 1400.8510 to
7.211400.8612, as modified by this subdivision.
7.22(c) The administrative law judge must issue a report making recommendations about
7.23the commissioner's action to the commissioner within 30 days following the close of the
7.24record. The administrative law judge may not recommend a change in the amount of the
7.25proposed penalty unless the administrative law judge determines that, based on the factors
7.26in subdivision 2, the amount of the penalty is unreasonable.
7.27(d) If the administrative law judge makes a finding that the hearing was requested
7.28solely for purposes of delay or that the hearing request was frivolous, the commissioner
7.29may add to the amount of the penalty the costs charged to the department by the Office of
7.30Administrative Hearings for the hearing.
7.31(e) If a hearing has been held, the commissioner may not issue a final order until at
7.32least five days after receipt of the report of the administrative law judge. The person to
7.33whom an order is issued may, within those five days, comment to the commissioner on the
7.34recommendations, and the commissioner must consider the comments. The final order
7.35may be appealed in the manner provided in sections 14.63 to 14.69.
8.1(f) If a hearing has been held and a final order issued by the commissioner, the
8.2penalty must be paid by 30 days after the date the final order is received unless review of
8.3the final order is requested under sections 14.63 to 14.69. If review is not requested or the
8.4order is reviewed and upheld, the amount due is the penalty, together with interest accruing
8.5from 31 days after the original order was received at the rate established in section 549.09.
8.6 Subd. 7. Mediation. In addition to review under subdivision 6, the commissioner
8.7may enter into mediation concerning an order issued under this section if the commissioner
8.8and the person to whom the order is issued both agree to mediation.
8.9 Subd. 8. Penalties due and payable. The commissioner may enforce penalties that
8.10are due and payable under this section in any manner provided by law for the collection
8.11of debts.
8.12 Subd. 9. Revocation and suspension of permit. If a person fails to pay a penalty
8.13owed under this section, the commissioner has grounds to revoke a permit or to refuse
8.14to amend a permit or issue a new permit.
8.15 Subd. 10. Cumulative remedy. The authority of the commissioner to issue a
8.16corrective order assessing penalties is in addition to other remedies available under statutory
8.17or common law, except that the state may not seek civil penalties under any other provision
8.18of law for the violations covered by the administrative penalty order. The payment of a
8.19penalty does not preclude the use of other enforcement provisions, under which penalties
8.20are not assessed, in connection with the violation for which the penalty was assessed.
8.21 Subd. 11. Deposit of fees. Fees collected under this section must be credited to the
8.22water management account in the natural resources fund.
8.23 Subd. 12. Plan for use of administrative penalties. The commissioner must
8.24prepare a plan for using the administrative penalty authority in this section. The plan must
8.25include explanations for how the commissioner will determine whether violations are
8.26minor, moderate, or severe. The commissioner must provide a 30-day period for public
8.27comment on the plan. The plan must be finalized within six months after the effective
8.28date of this section.
8.29 Sec. 7. Minnesota Statutes 2012, section 103G.301, subdivision 2, is amended to read:
8.30 Subd. 2. Permit application and notification fees. (a) A fee to defray the costs
8.31of receiving, recording, and processing must be paid for a permit application authorized
8.32under this chapter, except for a general permit application, for each request to amend or
8.33transfer an existing permit, and for a notification to request authorization to conduct a
8.34project under a general permit. Fees established under this subdivision, unless specified in
8.35paragraph (c), shall be compliant with section
9.1 (b) Proposed projects that require water in excess of 100 million gallons per year
9.2must be assessed fees to recover the costs incurred to evaluate the project and the costs
9.3incurred for environmental review. Fees collected under this paragraph must be credited
9.4to an account in the natural resources fund and are appropriated to the commissioner.
9.5 (c) The fee to apply for a permit to appropriate water, in addition to any fee under
9.6paragraph (b), and for a permit to construct or repair a dam that is subject to dam safety
9.7inspection is $150. The application fee for a permit to work in public waters or to
9.8divert waters for mining must be at least $150, but not more than $1,000. The fee for a
9.9notification to request authorization to conduct a project under a general permit is $100.
9.10(d) A penalty of $300 shall be assessed for each calendar year, up to a maximum of
9.11seven years, in which an unauthorized appropriation of water occurred. A penalty may
9.12not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
9.13governmental agency holding a water appropriation permit. This penalty is in addition to
9.14any other fee or penalty assessed.
9.15 Sec. 8. WATER REUSE REPORT; ENVIRONMENTAL QUALITY BOARD.
9.16By January 15, 2016, the Environmental Quality Board shall report on water reuse
9.17to the chairs and ranking minority members of the senate and house of representatives
9.18committees with jurisdiction over environment and natural resources policy. The report
9.19shall identify barriers to reuse, jurisdictional conflicts, analysis of statutes and rules, and
9.20the development of recommendations to support water reuse and aquifer recharge.
