Purpose

This bill would fund a program to replace wetlands impacted by repairing, rebuilding, replacing, or rehabilitating existing public roads. It appropriates money and authorizes state bonds to pay for restoring, creating, enhancing, and preserving wetlands so they can replace wetlands that were drained or filled because of road work. It also allows using an in-lieu fee arrangement with the federal government (through the Army Corps of Engineers) to help fulfill wetland replacement requirements.

Main Provisions

• Subdivision 1 – Appropriation

  • Authorizes an appropriation of 15,000,000 from the bond proceeds fund to the Board of Water and Soil Resources (BWSR).
  • Use of the funds: to acquire land or permanent easements and to restore, create, enhance, and preserve wetlands that replace wetlands drained or filled during road repair, reconstruction, replacement, or rehabilitation as required by state law.
  • Priority rules: the board may vary the usual priority order (as set in Minnesota Statutes) to implement an in-lieu fee agreement approved by the U.S. Army Corps of Engineers under the federal Clean Water Act (Section 404).
  • Valuation: the price paid for land or easements must reflect fair market value as determined by the board.
  • Partnerships/credit purchases: the board may partner with the federal government, other state agencies, political subdivisions, nonprofit organizations, fee-title owners, or other qualified private entities to acquire wetland replacement credits, following Minnesota Rules chapter 8420.1.

• Subdivision 2 – Bond sale

  • Requires the commissioner of management and budget to sell and issue up to 15,000,000 in state bonds to fund the appropriation.
  • The bond issuance must follow Minnesota statutes (sections 16A.631 to 16A.675) and the Minnesota Constitution (Article XI, sections 4 to 7).

How this changes current law

• Creates a specific, targeted appropriation and bond authorization to support the local road wetland replacement program.
• Explicitly enables an in-lieu fee approach with the Army Corps of Engineers under Clean Water Act Section 404 as a mechanism to replace wetlands.
• Gives the BWSR authority to adjust the traditional project priority list to accommodate in-lieu fee arrangements.
• Allows broad partnerships to acquire wetland replacement credits and clarifies how the land/easement value must be determined (fair market value) and how credits may be acquired (per Minnesota Rules 8420.1).

Significant changes to existing law

• Establishes a dedicated funding stream (bond proceeds) of up to $15 million for wetland replacement tied to road work.
• Codifies the use of in-lieu fee agreements with the USACE as a method for meeting wetland replacement requirements, including priority-order adjustments to make those agreements feasible.
• Expands the set of eligible entities that can participate in acquiring wetland credits and the processes for valuation and credit acquisition.

Relevant Terms - Local Road Wetland Replacement Program - Board of Water and Soil Resources (BWSR) - Wetland replacement credits - Wetlands restoration, creation, enhancement, preservation - In-lieu fee agreement - United States Army Corps of Engineers (USACE) - Clean Water Act, Section 404 - Fair market value - Minnesota Rules chapter 8420.1 - Bond proceeds fund - Bond sale / bonds - Minnesota Statutes section 103G.222 (and subdivisions) - Capital investment appropriation - Public road repair/reconstruction/replacement/rehabilitation