MN SF2176

Creates a water treatment facility renovation account in the special revenue fund to provide low or no interest loans to rural municipalities for wastewater treatment facility renovations and water main replacements that pose risks to groundwater or drinking water quality.

Eligible rural municipalities must submit project proposals to the Pollution Control Agency (for wastewater facilities) or Department of Health (for water mains) for ranking on existing priority lists before applying to the authority for loans.

Loans may cover up to 100 percent of eligible project costs minus other available funding, with principal and interest payments beginning no later than two years after award and full amortization within 20 years but not exceeding the facility's expected design life.

Borrowing municipalities must establish dedicated revenue sources for repayment, issue a general obligation note to the authority, and provide annual independent audits or state reporting forms for the loan term.

Dedicates five percent of annual local government aid appropriations (subdivisions 2a-2c under Minnesota Statutes section 477A.03) to fund the renovation account, effective for aids payable in 2024 and thereafter.