Purpose

Provide funding for replacing wetlands impacted by public road work. The bill would appropriate money and authorize state bonds to support the Local Road Wetland Replacement Program, with the goal of replacing wetlands that are drained or filled because of road repair, reconstruction, replacement, or rehabilitation.

Main Provisions

• Appropriation of 15,000,000 from the bond proceeds fund to the Board of Water and Soil Resources (BWSR). The money is to be used to acquire land or permanent easements and to restore, create, enhance, and preserve wetlands to replace wetlands drained or filled due to road work, as required by Minnesota law (Minnesota Statutes section 103G.222).
• The board may adjust the priority order under 103G.222 to implement an in-lieu fee agreement approved by the United States Army Corps of Engineers under the federal Clean Water Act, section 404.
• The purchase price for land or easements must be fair market value as determined by the board.
• The board may enter into agreements with federal government agencies, other state agencies, political subdivisions, nonprofit organizations, fee title owners, or other qualified private entities to acquire wetland replacement credits in accordance with Minnesota Rules chapter 8420.1.
• Bond financing: The commissioner of management and budget must sell and issue bonds of the state up to 15,000,000 to pay for the appropriation, under the terms of Minnesota law (statutes 16A.631 to 16A.675) and the state constitution (Article XI, sections 4 to 7).

Funding and Financing Details

• Source: Bond proceeds fund.
• Amount: Up to 15,000,000.
• Purpose: To fund acquisition of land or easements and wetland replacement activities (restoration, creation, enhancement, preservation) tied to road projects.
• Financing mechanism: State bonds with standard statutory terms.

Administration and Implementation

• Primary administration by the Board of Water and Soil Resources (BWSR).
• Bond issuance overseen by the Commissioner of Management and Budget.
• Program may utilize in-lieu fee arrangements with the U.S. Army Corps of Engineers (USACE) under the Clean Water Act, section 404.
• Credits for wetland replacement can be acquired from various sources (government, state agencies, local entities, nonprofits, private owners) and managed under Minnesota Rules chapter 8420.1.

Significance and Potential Changes to Law

• Creates or expands a dedicated capital investment program to replace wetlands affected by road work.
• Adds authority to use in-lieu fee arrangements approved by the USACE for wetland replacement, potentially streamlining or modifying how replacement requirements are met.
• Allows broader participation in providing wetland replacement credits (public and private partners) and establishes fair market value as the standard for acquisitions.
• Establishes a clear bond-financing path to fund these wetland replacement activities.

Implementation Considerations

• Coordination with federal permitting (USACE, Clean Water Act Section 404) and federal and state wetland rules.
• Monitoring and valuation practices to ensure fair market value is accurately determined.
• Long-term management of acquired lands and credits to ensure ecological and regulatory goals are met.

Relevant Terms

• Local Road Wetland Replacement Program
• Board of Water and Soil Resources (BWSR)
• Wetland replacement credits
• Wetland restoration
• Wetland creation
• Wetland enhancement
• Wetland 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
• Minnesota Statutes section 103G.222
• Bond proceeds fund
• Bonds (state financing)
• Minnesota Management and Budget (commissioner of management and budget)
• Minnesota Constitution Article XI, sections 4–7
• Public roads (repair, reconstruction, replacement, rehabilitation)