Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
State of Minnesota
S.F. No. 210 - Omnibus Capital Investment Bill - The Third Engrossment
Author: Senator David H. Senjem
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
Date: May 16, 2017


Article 1 – Appropriations

Section 1 [Capital Improvement Appropriations] states that the appropriations in this article are from the bond proceeds fund, or another named fund. Notes that bond proceeds must be spent as permitted by the Minnesota Constitution. Permits use of appropriations to pay agency staff costs that are attributed directly to the capital project or program. Makes appropriations available until a project is completed or abandoned, subject to a four-year time limit. Money appropriated in the article may not be used for asset preservation if the work can be done in a reasonable time frame using the state energy improvement financing program in Minnesota Statutes, section 16A.322, or the guaranteed energy saving program in section 16C.144. Notes that if a project is fully funded by the appropriation, no additional nonstate money is required. General fund appropriations are onetime, in fiscal year 2017.

Sections 2-30 appropriate money for specified programs and projects, as detailed in the bill and listed on the spreadsheet.

Section 2 [University of Minnesota]

Subd. 1. Total appropriation

Subd. 2. Higher Education Asset Preservation and Replacement (HEAPR)

Subd. 3.  Chemical Sciences and Advances Materials Science Building, Duluth campus

Subd. 4. Plant Growth Research Facility, Twin Cities campus

Subd. 5. University Share – States that the appropriations to the University of Minnesota, other than HEAPR, are intended to cover two-thirds of the cost of the project. The University must pay the remaining costs.

Section 3 [Minnesota State Colleges and Universities]

Subd. 1.  Total appropriation

Subd. 2.  Higher Education Asset Preservation and Replacement (HEAPR)

Subd. 3.  Hibbing Community College

Subd. 4.  Minnesota State Community and Technical College – projects at the Fergus Falls campus and the Wadena campus

Subd. 5.  Northland Community and Technical College, East Grand Forks

Subd. 6.  Riverland Community College, Albert Lea

Subd. 7. South Central College, North Mankato

Subd. 8. St. Cloud State University

Subd. 9.  Winona State University, Education Village, Phase 2

Subd. 10.  Debt Service – Requires MnSCU to pay the debt service on one-third of the principle amount on bonds issued by the state for projects in this subdivision, other than HEAPR.

Subd. 11.  Unspent Appropriation – Allows money appropriated in this section that is not needed to be used for HEAPR on the same campus.

Section 4 [Education]

Subd. 1.  Total appropriation

Subd. 2.  Library Construction Grants

Subd. 3.  Red Lake – Independent School District No. 38 Facility Projects

Subd. 4.  Grand Rapids – Myles Reif Center

Subd. 5.  Olmsted County – Dyslexia Institute of Minnesota

Section 5 [Minnesota State Academies]

Subd. 1.  Total  appropriation

Subd. 2.  Asset Preservation

Subd. 3.  Minnesota State Academies Security Corridor - For the campus serving students who are deaf.

Section 6  [Natural Resources]

Subd. 1.  Total appropriation. Makes the appropriation in this section subject to the natural resources capital improvement program, unless the section gives more specific standards, criteria, or priorities than the capital improvement program.

Subd. 2. Natural Resources Asset Preservation

Subd. 3.  Flood Hazard Mitigation.  Includes specified amounts for projects in the Cedar River Watershed District, Browns Valley, and Ortonville. Otherwise, projects priorities shall be determined by the commissioner of natural resources. To the extent practicable, recipients of flood damage reduction projects must create wetlands eligible for wetland replacement credits.  Wetlands established by projects funded in this subdivision that are not needed for replacement credit as part of a flood damage project are eligible for wetland replacement credit.

Subd. 4.  Dam Renovation, Repair, Removal.  Includes specified amounts for emergencies on state-owned dams, the Lanesboro dam, the Lake Bronson dam, the Pelican Rapids dam, the Norway Lake dam, the Canby R-6 impoundment dam in Yellow Medicine County, the Little Stone Lake dam in St. Louis County, and for dams at Brawner, West Leaf Lake, Collinwood, Grindstone River, and Sullivan. If a specified project is not ready to proceed or if the total appropriation is more than required for these projects, then the appropriation will be used to renovate or remove publicly owned dams that are prioritized by the commissioner of natural resources under the dam renovation program in Minn. Stat. Section 103G.511 and 103G.515.

Subd. 5.  Reforestation and Stand Improvement – For reforestation and stand improvement on state forest lands.

Subd. 6.  State Trail and Recreation Area Development – Specifies that the appropriation be used for four projects:  Gitchi-Gami State Trail (Grand Marais to Cascade State Park, and through Tofte); Glacial Lakes Trail (New London to Sibley State Park) and repair of the bike trail in Sibley State Park; Heartland State Trail (Detroit Lakes to Frazee; if sufficient money, then also for the spur from Park Rapids to Itasca State Park); and Cuyuna Country State Recreation Area (including the Cuyuna Mountain Bike System).

Subd. 7.  Champlin – Mill Pond

Subd. 8.  Lake Country – Prospectors ATV Trail System

Subd. 9.  Unspent Appropriations – Permits an unspent portion of an appropriation for a project in this section that is complete to be used for asset preservation.

Section 7 [Pollution Control Agency]

            Subd. 1.  Total appropriation

            Subd. 2.  St. Louis River Cleanup

Subd. 3.  Closed Landfill Cleanup – For remedial systems and land acquisition under the closed landfill program. The agency must follow the agency priorities, and notes that the priority list includes a waste disposal engineering site in Anoka County.

Subd. 4.  Capital Assistance Program. Full amount of the appropriation through the solid waste capital assistance grant program is designated for a grant to Polk County for a regional integrated solid waste management system, and specifies that no renewable energy component may be mandated as a requirement to use this funding.

Subd. 5.  Redwood-Cottonwood Rivers Joint Powers – Lake Redwood Reclamation and Enhancement Project

Section 8 [Board of Water and Soil Resources]    

            Subd. 1.  Total appropriation

Subd. 2.  Reinvest in Minnesota Reserve Program – To acquire conservation easements from landowners for wetlands and other natural features. Requires the Board to give priority to projects that receive federal money. Authorizes the board to enter into new agreements and amend past agreements with landowners. Permits up to five percent to be used for restoration and enhancement.

 Subd. 3.  Local Government Roads Wetland Replacement Program – To acquire land or permanent easements for wetlands to replace those filled due to repairs, reconstruction, replacement, or rehabilitation of existing public roads.  Authorizes the board to vary the priority order to implement an in-lieu fee agreement approved by the U.S. Army Corps of Engineers under the Clean Water Act.  Requires that the purchase price paid for land or easement must be fair market value as determined by BWSR.  The board is authorized to enter agreements to acquire wetland replacement credits under existing rules.

Section 9 [Agriculture]

            Subd. 1 Total appropriation

            Subd. 2. Agriculture Lab

            Subd. 3.  AURI

Section 10 [Minnesota Zoological Garden] – For asset preservation at the Minnesota Zoo.

Section 11 [Administration]

Subd. 1.  Total Appropriation

Subd. 2.  Centennial Parking Ramp - Appropriates money to design and repair the Centennial parking ramp, including removal of the top deck green space to provide additional parking, repairing damaged cables, and installing a deck surface protection coating. Permits any unexpended amount to be used to design and construct a storm water retention basin if feasible.

Subd. 3.  Capital Asset Preservation and Replacement Account

Subd. 4.  Capitol Complex Monuments and Memorials – To design and repair the Peace Officers and Roy Wilkins Memorials.

Subd. 5. Capitol Complex – Physical Security Upgrades – For physical security improvements to one or more of the following buildings and their attached tunnel systems, surrounding grounds and parking facilities:  Administration, Centennial, Judicial, Ag/Health Lab, Minnesota History Center, Minnesota History Center Loading Dock, Capitol Complex Power Plant and Shops, Stassen, State Office, and Veterans Service.

Subd. 6. Granite Falls – Pioneer Public Television – From the general fund for an equipment grant to Pioneer Public Television.

Section 12 [MN.IT] – for the state data center facilities at the Bureau of Criminal Apprehension’s Maryland Avenue office and at the department of revenue’s Stassen Office Building.

Section 13 [Military Affairs] – asset preservation.

Section 14 [Public Safety] – for a joint emergency railroad and pipeline emergency response training facility at Camp Ripley.

Section 15 [Transportation]

Subd. 1 – Total appropriation

Subd. 2 – Local Bridge Replacement and Rehabilitation

Subd. 3 – Local Road Improvement Fund Grants. This section appropriates $141,196,000 from bond proceeds in the state transportation fund to the Local Road Improvement Fund for grants to construct and reconstruct local roads with statewide or regional significance or for grants to counties to assist with the costs of rural road safety capital improvement projects on county state-aid highways.  This appropriation includes money for certain specified grants and projects:

  • a grant to Anoka County for improvements to Highway 23/Lake Drive, Highway 54/West Freeway Drive, and Horsnby Street in Columbus;
  • a township road in Swift County between Highways 7 and 119;
  • a grant to Baxter for 50 percent of the cost for improvement to Cypress Drive;
  • a grant to Blaine for a reconstruction of 105th Avenue near the National Sports Center;
  • a grant to Hennepin County for an access project at I-35W and Lake Street;
  • a grant to Ramsey County for the interchange of I-694 and Rice Street; and
  • a grant to Redwood County for paving Nobles Avenue.

Subd. 4 – Rail Grade Separations – appropriates money for two highway-rail grade crossings:  Anoka County State-Aid Highway 78 (Hanson Boulevard) and Sturgeon Lake Road in Red Wing.

Subd. 5 – Railroad Warning Devices

Subd. 6 – Minnesota Valley Regional Rail Authority

Subd. 7 – Hugo – Short Line Railway

Subd. 8 – Port Development Assistance

Subd. 9 – International Falls-Koochiching County Airport Commission

Subd. 10 – Grand Rapids – Pedestrian Bridge

Section 16 [Metropolitan Council]

Subd. 1 – Total appropriation

Subd. 2 – Metropolitan Regional Parks and Trails Capital Improvements

Subd. 3 – Metro Orange Line BRT

Subd. 4 – Mall of America Station

Subd. 5 – Metropolitan Cities Inflow and Infiltration Grants

Subd. 6 – St. Paul – Como Zoo

Section 17 [Health] – from the general fund for equipment and instruments for the public health laboratory.

Section 18 [Human Services]

Subd. 1 – Total appropriation

Subd. 2 – Minnesota Security Hospital – St. Peter

Subd. 3 – Child and Adolescent Behavioral Health Services

Subd. 4 – Anoka Metro Regional Treatment Center Safety and Security Renovations

Subd. 5 – Regional Medical Examiner’s Facility

Subd. 6 – Perspectives Family Center – St. Louis Park

Subd. 7 – The Family Partnership – Minneapolis

Subd. 8 – St. Paul – Dorothy Day Opportunity Center

Section 19 [Veterans Affairs] – for capital improvement at veterans homes

Section 20 [Corrections]

Subd. 1 – Total appropriation

Subd. 2 – Asset Preservation

Subd. 3 – Minnesota Correctional Facility – St. Cloud

Subd. 4 – Minnesota Correctional Facility – Moose Lake

Subd. 5 – Unspent appropriations – permits the use of an unspent portion of this appropriation to be used for asset preservation

Section 21 [Employment and Economic Development]

Subd. 1 – Total appropriation

Subd. 2 – Transportation Economic Development

Subd. 3 – Greater Minnesota Business Development Public Infrastructure Grants

Subd. 4 – Innovative Business Development Public Infrastructure Grants

Subd. 5 – Duluth – Steam Plant

Subd. 6 – Eagle’s Healing Nest

Subd. 7 – Hennepin County – Hennepin Center for the Arts

Subd. 8 – Hermantown – Arrowhead Regional Health and Wellness Center

Subd. 9 – Litchfield – Phase 2 Power Generation Improvements

Subd. 10 – Madelia

Subd. 11 – Minneapolis – Norway House

Subd. 12 – Minneapolis – Pioneers and Soldiers Cemetery Restoration

Subd. 13 – Polk County – North Country Food Bank in Crookston

Subd. 14 – Red Wing – River Town Renaissance

Subd. 15 – St. James – Public Infrastructure

Subd. 16 – St. Paul – Science Museum of Minnesota Building Preservation

Subd. 17 – St. Paul Port Authority – Minnesota Museum of American Art

Section 22 [Public Facilities Authority]

Subd. 1 – Total appropriation

Subd. 2 – State Match for Federal Grants – to match federal grants for the clean water revolving fund and the drinking water revolving fund.

Subd. 3 – Water Infrastructure Funding Program – wastewater project and drinking water projects

Subd. 4 – Point Source Implementation Grants Program

Subd. 5 – Big Lake Area Sanitary District – Sewer System and Force Main

Subd. 6 – Dennison – Sewage Treatment System Improvements

Subd. 7 – East Grand Forks – Wastewater Interconnection Infrastructure

Subd. 8 – Koochiching County – Voyageurs National Park Clean Water Project

Subd. 9 – Lilydale – Highway 13 Storm Water Conveyance

Subd. 10 – Oronoco – Wastewater Collection and Treatment Facilities

Section 23 [Minnesota Housing Finance Agency]

Section 24 [Minnesota Historical Society]

Subd. 1 – Total appropriation

Subd. 2 – Asset Preservation

Section 25 – Bond sale expenses

Section 26 [Bond Sale Authorization]

Subd. 1 [Bond proceeds fund] authorizes sale and issuance of bonds to provide money appropriated from the bond proceeds fund.

Subd. 2 [Transportation fund] authorizes the sale and issuance of bonds to provide money appropriated from the state transportation fund.

Subd. 3 [Maximum effort school loan fund] authorizes sale and issuance of bonds to provide the money appropriated from the maximum effort school loan fund.

Section 27 [Bond Sale Schedule] requires the commissioner of management and budget to sell general obligation bonds on a schedule so that during the biennium no more than a specified amount is transferred from the general fund to the state bond fund to pay principal and interest on state general obligation bonds.  Appropriates the amount needed to pay debt service from the general fund to the state bond fund.

Section 28 [Cancellations; Bond Sale Authorization Reductions] reduces the bond sale authorization from previous years, for amounts that were not needed because of projects being under-budget or abandoned.

Section 29 [Effective date] sets the effective date for Article 1 as the day following enactment.

Article 2 – Transportation Finance and Policy

Section 1 [Transportation Capital Improvement Appropriations] specifies that appropriations in this article are added to appropriations in 2015, are from the general fund unless otherwise specified, are onetime, and are in fiscal year 2017.  Appropriations of bond proceeds must be spent as permitted by the constitution and the use of bond proceeds for staff must be limited to only staff costs that are attributed directly to the capital program or project as permitted by MMB policy. Appropriations of bond proceeds are available until the project is completed or abandoned subject to the four-year cancellation statute.

Section 2 [Total Trunk Highway Bond Appropriation]

Subd. 1.  Total Appropriation - appropriates $197,000,000 of bond proceeds from the trunk highway account for only the following purposes, in amounts to be determined by the commissioner of transportation.

Subd. 2. Trunk Highway 23 Construction - constructing a specified portion of Trunk Highway 23 as a four-lane divided highway

Subd. 3. Trunk Highway 14 - acquisition, design, engineering, and environmental analysis to make a specified portion of Trunk Highway 14 a four-lane divided highway

Subd. 4. U.S. Highway 10 - adding third travel lanes to a specified portion of U.S. Highway 10

Subd. 5. Hennepin County – U.S. Highway 12 - specified projects on U.S. Highway 12

Subd. 6. Anoka County I-35 Interchange in Columbus - grant to Anoka County for an I-35 interchange in Columbus

Subd. 7. I-94/Brockton Lane Interchange - an interchange at I-94 and Brockton Lane

Section 3 [Total Trunk Highway Fund Appropriation]

Subd. 1 Total Appropriation - appropriates $132,089,000 from the trunk highway fund only for the following purposes, in amounts determined by the commissioner.

Subd. 2. Highway Projects

(a)   State road construction;

(b)   Reconstruction of a segment of U.S. Highway 61 in Red Wing; and

(c)   A grant to the city of Cambridge for improvement of Trunk Highway 95.

Section 4 [Total General Fund Appropriation] 

Subd. 1. Total Appropriation - appropriates $166,500,000 from the general fund only for the following purposes, in amounts to be determined by the commissioner, except for specified amounts in subdivisions 3 to 9.

Subd. 2. Highway Projects

(a) Acquiring right-of-way and constructing an interchange at Trunk Highway 212 and Carver County Road 140;

(b)   Acquiring land, predesign, design, and constructing an interchange at U.S. Highway 10 and Benton County State-Aid Highway 4, and constructing frontage roads along a portion of U.S. Highway 10;

(c)   Granting money to Anoka County for preliminary engineering, environmental analysis, and final design for improvement of U.S. Highway 10;

(d)   Acquiring land, design, engineering, and environmental analysis to expand U.S. Highway 14 to a four-lane divided highway between Nicollet and New Ulm.  The transportation economic development program;

(e)   Improvements to segment of Cliff Road;

(f)   Grant to Virginia and the Virginia PUC for work associated with the relocation of TH 53; and

(g)   Two rail grade separations in Moorhead.

Subd. 3. The Transportation Economic Development Program

Subd. 4. The Small Cities Assistance Program

Subd. 5. The Safe Routes to School Program

Subd. 6. A Safety Improvement Study Related To The Interchange Of I-94/694/494

Subd. 7.  Town Roads

Subd. 8. County State-Aid Highways

Subd. 9. Municipal State-Aid Streets

Section 5 [Airports] appropriates $8,483,000 from the state airports fund, for projects at airports as follows:

(1)   $2,334,000 to expand the passenger terminal building at the Rochester airport to meet U.S. Customs and Border Protection standards;

(2)   $5,900,000 to provide the federal match the Duluth and Sky Harbor airports; and

(3)   $250,000 for an air transport optimization planning study for the St. Cloud Regional Airport.

The section total in the First Engrossment is incorrect.

Section 6 [Minnesota Rail Service Improvement] appropriates $1,000,000 from the rail service improvement account in the special revenue fund for a grant to Grand Rapids to fund rail planning studies, design, and preliminary engineering for the construction of a freight rail line in the counties of Itasca, St. Louis and Lake.

 Section 7 [Bond Sale Expenses] appropriates money from the bond proceeds account in the trunk highway fund for bond sale expenses.

Section 8 [Trunk Highway Bonds; Debt Service] appropriates $1,302,000 in fiscal year 2018 and $9,807,000 in fiscal year 2019 form the trunk highway fund to pay debt service on the trunk highway bonds authorized in this bill.

Section 9 [Bond Sale Authorization] authorizes MMB to sell bonds and requires the proceeds to be deposited in the bond proceeds account of the trunk highway fund.

Section 10 [Appeal process] requires the commissioner of transportation to establish an expedited process for the owner or occupant of property abutting a trunk highway to appeal a denial or revocation of an access permit. Sets certain requirements for the appeal process. Prescribes duties for the Office of Administrative Hearings.

Section 11 [Administration] makes technical changes to the small cities assistance program statute.

Section 12 [Interstate 94 Wire Rope Safety Barriers] requires wire rope safety barriers or other safety device along the center median of I-94 between Huron Boulevard and Cretin Avenue.

Section 13 [Transparent Noise Barrier] requires a noise barrier of transparent panels at the interchange of I-694 and I-35E.

Section 14 [Corridors of Commerce Project Selection] makes a project on Highway 212 from Chaska to Montevideo eligible for the Corridors of Commerce program.

Section 15 [Interstate 94/694/494 Interchange Safety Improvement Study] requires a safety improvement study for the interchange of I-94, I-694, and I-494.

Section 16 [Effective Date] makes all sections in Article 2 effective the day after enactment.

Article 3 – Miscellaneous

Section 1 [Lewis and Clark Appropriation Bonds] authorizes $11.5 million in appropriation bonds to finance Phase 3 of the Lewis and Clark project that brings water from an aquifer near the Missouri River in South Dakota to certain communities in southwest Minnesota. Requires a nonstate match of $9,000,000.  Appropriates up to $855,000 to pay the debt service on these new appropriation bonds. Makes technical and conforming changes.

           Subd. 1 [Definitions] makes conforming changes.

Subd. 2 [Authorization to issue appropriation bonds] and subdivision 2a [Project authorization] make clarifying changes to, and re-organizes provisions related to the 2015 authorization to sell appropriation bonds.

Subd. 2b [Additional project authorization] authorizes the commissioner of management and budget to sell $11,500,000 in appropriation bonds for Phase 3 of the Lewis and Clark project, including extending the project from the Lincoln-Pipestone Rural Water System connection near Adrian to Worthington, constructing a reservoir in Nobles County and a meter building in Worthington, and acquiring and installing a control and data acquisition system.  Requires a nonstate match of $9,000,000 for Phase 3.

Subds. 3 [Form; procedure], 4 [Refunding bonds], 5 [Appropriation bonds as legal investments] and 6 [No full faith and credit; state not required to make appropriations] do not change current law.

Subd. 7 [Appropriation of proceeds] specifies that the recipient of appropriated bond proceeds is the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers Board.

Subd. 8 [Appropriation for debt service and other purposes] appropriates $855,000 from the general fund to pay principal and interest on appropriation bonds issued for Phase 3 of the project. The appropriation is available in fiscal year 2018 through fiscal year 2039.

Subd. 9 [Waiver of immunity] does not change current law.

Section 2 [Upper Bluff; Lease Terms] provides that a long-term lease of bond-financed property at the Upper Bluff area at Fort Snelling will be treated as a sale, with lease proceeds being applied to pay back bonds.  After paying off bonds, the revenue is credited to a state park account.

Section 3 [Local Cost-Share Assistance Account] changes the name of the “trunk highway corridor project account” to the “local cost-share assistance account” and removes the requirement that the commissioner of transportation determine the amount of the local share of costs eligible for assistance from the account.

Section 4 [Hazardous Materials Rail Safety Account and Grant Program] establishes a new competitive grant program for reducing risks of transporting hazardous material by rail.  The program funds can be used to pay capital costs for public highway-rail grade crossing improvements on rail corridors transporting crude oil and other hazardous materials.  The program may be used to fund upgrades to existing protection systems, the closing of crossing and necessary roadwork, and reconstruction of at-grade crossings to full grade separations. Money is appropriated for this program in Article 1.

Section 5  [Water Infrastructure Funding Program] expands the existing wastewater infrastructure program to provide supplemental assistance to government entities receiving funding under the drinking water revolving fund program.  (Under current law, the program only provides this supplemental assistance to government entities receiving funding through the clean water revolving fund program or the USDA’s Rural Economic and Community Development Water and Waste Disposal Loans and Grants.)  Adds specifics to the calculation of the essential project component percentage eligible for this program.  Increases the caps for grants from $4 million to $5 million per project and from $15,000 to $20,000 per existing condition, whichever is less.  Removes certain provisions relating to loans:  eliminates permission for governmental units to defer payment of assessments to repay loans; and eliminates a provision that specifies the amount and timing of loan repayments.  Money is appropriated for this program in Article 1.

Section 6 [Point Source Implementation Grants] makes changes to the point source implementation grant program.  Increases the cap from $3,000,000 to $7,000,000 and up to 80% of the project cost for grants under the point source implementation program and makes other technical changes.  Money is appropriated for this program in Article 1.

Section 7 [Other Uses of Fund] makes changes to the Drinking Water Revolving Fund program.  Qualifies one of the permitted uses of the fund. Makes changes that are conforming to the expansion of the wastewater infrastructure program to cover drinking water in Section 5 of this article.

Section 8 [Bonding Authority] increases the cap on the bonding authority of the Public Facilities Authority from $1.5 billion to $2 billion for issued and outstanding bonds.

Section 9 [Additional Authorization] authorizes the Housing Finance Agency to issue $70 million in new housing infrastructure bonds.

Section 10 [Additional Appropriation] appropriates money from the general fund to pay the debt service on the new Housing Finance Agency bonds, authorized in the previous section. This appropriation is capped at $2,800,000 annually from 2018 through 2039.

Sections 11-15 modify the project description for, or extends the availability of, appropriations of bond proceeds from earlier years. Projects affected are:  the Lanesboro dam, a trail in Grant County, the Inver Grove Heights Heritage Village project, a pedestrian crossing for Robert Street, and highway-rail grade separation projects in Kandiyohi County at intersections associated with the Willmar Wye project.

Section 16 [National Sports Center; Lease] permits the Minnesota Amateur Sports Commission to lease a certain property to Independent School District No. 16 in Spring Lake Park, subject to approval by the attorney general and for a term not to exceed 99 years.

Section 17 [Commissioner of Administration Report – Funding for Asset Preservation] requires the commissioner of administration to report to the legislature by November 15, 2017 with recommendations for reliable, predictable funding for asset preservation of capital assets owned by agencies.

Section 18 [Reauthorization of Appropriation] reauthorizes an expired appropriation for the Fergus Falls Regional Treatment Center.

Section 19 [Repealer] repeals authorization for the sale and issuance of bonds for the cooperative secondary facilities grant program.

Section 20 [Effective Date] makes this article effective the day after final enactment, unless otherwise noted.

Article 4 – Rail Transportation

Section 1 [Oil and Other Hazardous Substances Transportation Data] adds certain data on oil and hazardous substances transportation by railroads to the list of data that is classified in a statute outside of the Data Practices Act.

Section 2 [Prevention and Response Plans] adds certain data on prevention and response plans to the list of data that is classified outside of the Data Practices Act.

Section 3 [Preparedness and Response for Certain Railroads] makes changes to current statute that relates to preparedness and response for railroads in case of oil or hazardous substance discharge. In addition to the changes noted below, this section strikes obsolete provisions that set deadlines that are now past.

Subd. 1 [Application] does not change current law.

Subd. 2 [Training] expands the current requirement that railroads offer training and refresher training to fire departments along oil-transporting train routes to include training for local organizations for emergency management. Changes the description of topics required in the training.

Subd.  3 [Emergency response planning; coordination] requires railroads to communicate with specified entities to assist emergency managers, upon request, to identify local rail-specific dangers and to obtain information from emergency managers about local dangers that may impact rail operations or public safety. The railroad’s coordination with emergency managers must include identification of increased risks and responses due to high population concentration, critical local infrastructure, key facilities, significant venues, or sensitive natural environments. This section requires the commissioner of public safety to compile contact information for emergency managers and fire chiefs for railroads.

Subd.  4 [Response capabilities; time limits] requires a railroad to provide certain information about the substance released, instructions for dealing with the release, and contact information for the shipper, within 15 minutes of arrival by first responders to a rail incident involving oil or other hazardous substances. Requires a railroad to take certain actions within an hour of confirmation of a discharge, including assessment, initiating railroad response and providing advice and recommendations to the incident commander. Requires the railroad within 3 hours of confirmation of the discharge to provide resources to assist the incident commander with ongoing public safety and scene stabilization.

Subd. 5 [Environmental response exercises] requires railroads to conduct certain exercises on a prescribed schedule. Requires that exercises be conducted in a manner set by the Pollution Control Agency and requires the PCA to coordinate the exercises with federally-required exercises.

Subd.  6 [Prevention and response plans; requirements, submission] provides that a railroad’s prevention and response plan may need to be updated more frequently than every three years if there has been a significant discharge, significant change in operation or ownership, significant change in national or area contingency plans, or change in capabilities or role of a person named in a plan as having an important response role.

Subd. 7 [Environmental response plan data] specifies that a prevention and response plan is nonpublic data for purposes of the Data Practices Act.

Section 4 [State Rail Safety Inspection Program] expands the state rail safety inspection program. This section is effective the day after enactment.

Subd.  1 [Positions established; duties] allows the commissioner of transportation to increase the number of state rail safety inspector positions from the current max of four to a maximum of six.  This section adds to the inspectors’ powers the inspection of train equipment.

Subd.  2 [Railroad company assessment; account; appropriation] bases the existing assessment on rail carriers on route miles in Minnesota at the time of assessment. The commissioner is directed to include in the assessment calculation of additional positions, along with inspection, administration, supervision, travel, equipment, and training.

Section 5 [Incident Emergency Response; Preparedness and Information] establishes new requirements on rail carriers and emergency managers for incident emergency response, preparation, and information distribution.

Subd. 1 [Definitions] defines “emergency manager,” “hazardous substance,” “incident commander,” “oil,” and “rail carrier.”

Subd.  2 [Traffic review] requires a rail carrier to provide a traffic review containing specified information within ten days of receiving a written request from an emergency manager or fire chief along routes over which oil and other hazardous substances are transported.  The traffic review must include the types and volume of oil and hazardous substances transported through the requester’s district in the prior calendar year.

Subd.  3 [Emergency response planning; information sharing] requires a rail carrier to provide certain information on written request to an emergency manager or fire chief along routes where oil and hazardous substances are transported. The required information includes a copy of the carrier’s prevention and response plans, and information used to develop the carrier’s route analysis as required by federal law.

Subd.  4 [Emergency response planning; coordination meetings] requires a rail carrier within 30 days of receiving a written request to be available to meet with a requesting emergency manager or fire chief along a route over which oil and other hazardous substances are transported, concerning emergency response planning and coordination. The carrier is required to provide certain information at the meeting, including a review of the carrier’s emergency response planning capability, and inventory information on emergency response involving oil or other hazardous substance.  Inventory information consists of equipment owned by the carrier, response personnel of the carrier and resources available to the carrier through contracts.

Subd.  5 [Real-time emergency response information] requires the commissioner of public safety to receive and disseminate certain emergency response information through the Minnesota Fusion Center. This section requires carriers collectively to provide information on transportation of oil and other hazardous substances to emergency responders through an Internet-based format that the rail carriers provide through a wireless communications device application on the effective date of this section.

Subd.  6 [Public safety response exercises] requires each rail carrier to conduct one tabletop public safety emergency response exercise in each emergency management region in which the carrier transports oil or hazardous materials by July 1, 2018, and by July 1 every two years after that. This section also requires each rail carrier to conduct one full-scale exercise every four years. In a region in which more than one carrier operates, the carriers may conduct exercises jointly or may alternate. To the extent feasible, the carriers must coordinate the exercises among each other and with environmental response exercise required under state law.

Subd.  7 [Transportation and response planning data] classifies as nonpublic under the Data Practices Act certain data that is provided to an emergency manager, incident commander, emergency first responder, fire chief, or the commissioner of public safety.  The nonpublic data includes the emergency response planning information, real-time emergency response information and public safety response information required under this section.  This section does not classify the traffic planning review as nonpublic.

Section 6 [Railroad and Pipeline Incident Preparedness; Oil and Other Hazardous Substances]

Subd.  1 [Definitions] changes the definition of “hazardous substance.  The current definition is as follows:

(1) any commercial chemical designated pursuant to the Federal Water Pollution Control Act, under United States Code, title 33, section 1321(b)(2)(A);

(2) any hazardous air pollutant listed pursuant to the Clean Air Act, under United States Code, title 42, section 7412; and

(3) any hazardous waste.

This subdivision changes the meaning of “hazardous substance” to a definition in federal law.

Subd.  2 [Railroad and pipeline incident account] changes the amount that is annually appropriated by statute to the commissioner of Pollution Control Agency for environmental protection activities related to statutorily-required railroad discharge preparedness from $104,000 to the “amount necessary”. This section changes the name of the account.

Subd.  3 [Allocation of funds] adds risks to the general public to the list of factors in determining priority for use of available funds.  Adds permissible uses of funds to including public safety emergency response exercises, and certain public education and outreach.

Subd.  4 [Assessments] is a conforming change to reflect the change of the fund name.

Section 7 [Revisor’s Instruction] instructs the Revisor to recode two subdivisions now coded in the oil and hazardous substance discharge preparedness chapter (Chapter 115E) as subdivisions in the Railroad Safety and Employment chapter (Chapter 219).  These subdivisions relate to the subject of railroad training of fire departments and emergency managers (base on new language in this bill) for emergency response and requirements for railroads to coordinate emergency response activities with various specified entities.





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