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SF4041 (Legislative Session 94 (2025-2026))

Clean water bond issue and appropriation

Related bill: HF3891

AI Generated Summary

Purpose

To provide funding for clean water initiatives in Minnesota by authorizing the sale of state general obligation bonds and appropriating the bond proceeds to support several clean water programs and grants.

Key Provisions

  • Subdivision 1 — Total appropriation

    • $225,000,000 from the bond proceeds fund is appropriated to the Public Facilities Authority for the purposes of this section.

  • Subdivision 2 — Emerging contaminants grants

    • $22,000,000 of the appropriation is dedicated to the emerging contaminants grant program (Minnesota Statutes section 446A.082).

  • Subdivision 3 — State match for revolving loan funds

    • $19,000,000 to match federal capitalization grants for the clean water revolving fund (Minnesota Statutes section 446A.07) and the drinking water revolving fund (Minnesota Statutes section 446A.081).
    • This appropriation must be used for qualified capital projects.

  • Subdivision 4 — Water infrastructure funding program

    • $60,000,000 for grants to eligible municipalities under the water infrastructure funding program (Minnesota Statutes section 446A.072).

  • Subdivision 5 — Point source implementation grants program

    • $124,000,000 for grants to eligible municipalities under the point source implementation grants program (Minnesota Statutes section 446A.073).
    • This appropriation must be used for qualified capital projects.

  • Subdivision 6 — Bond sale

    • Allows the state to sell and issue bonds up to $225,000,000 to fund the appropriations in this section.
    • Bond sale terms are governed by Minnesota Statutes sections 16A.631 to 16A.675 and by the Minnesota Constitution, Article XI, sections 4 to 7.

Significant Changes / What the bill does

  • Establishes a comprehensive funding package for clean water projects via general obligation bonds.
  • Directs substantial allocations to programs addressing emerging contaminants, water infrastructure, and capital improvements through revolving funds and grants to municipalities.
  • Ties funding to existing Minnesota statutes and programs, specifying that funds be used for qualified capital projects.
  • Enables the Public Facilities Authority to administer the stated grants and programs with financing provided by bond proceeds.

Implications

  • Expands state financing for water-related infrastructure and contamination mitigation.
  • Increases state leverage with federal matching funds for revolving loan programs.
  • Provides direct grants to municipalities to support water quality improvements.

Relevant Terms - emerging contaminants grants - clean water revolving fund - drinking water revolving fund - water infrastructure funding program - point source implementation grants program - Public Facilities Authority - bond proceeds fund - general obligation bonds - Minnesota Statutes 446A.082 - Minnesota Statutes 446A.07 - Minnesota Statutes 446A.081 - Minnesota Statutes 446A.072 - Minnesota Statutes 446A.073 - Minnesota Constitution Article XI (sections 4-7) - 16A.631 to 16A.675 - qualified capital projects

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2026SenateActionIntroduction and first reading
March 02, 2026SenateActionReferred toCapital Investment

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to Minnesota Statutes section 446A.082 (Emerging Contaminants Grants) within the Clean Water Appropriations.",
      "modified": []
    },
    "citation": "446A.082",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to Minnesota Statutes section 446A.07 (Clean Water Revolving Fund) within the appropriation.",
      "modified": []
    },
    "citation": "446A.07",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to Minnesota Statutes section 446A.081 (Drinking Water Revolving Fund) within the appropriation.",
      "modified": []
    },
    "citation": "446A.081",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to Minnesota Statutes section 446A.072 (Water Infrastructure Funding Program) within the appropriation.",
      "modified": []
    },
    "citation": "446A.072",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to Minnesota Statutes section 446A.073 (Point Source Implementation Grants Program) within the appropriation.",
      "modified": []
    },
    "citation": "446A.073",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to Minnesota Statutes sections 16A.631 through 16A.675 (bond sale process) relevant to the bond issuance.",
      "modified": []
    },
    "citation": "16A.631 to 16A.675",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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