2017.01.17 CC Packet - Goal Setting Session

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LOCAL WETLAND REPLACEMENT PROGRAM Position: Washington County is requesting $5 million of cash to be appropriated to the Board of Water and Soil Resources to allow the purchase of wetland credits from private wetland banks to meet immediate Local Road Wetland Replacement Program obligations. Washington County is requesting $10 million in bonding authorization to BWSR to "recapitalize" its wetlands banks to provide future replacement credits. Due to federal requirements, new, functioning wetlands that generate the necessary wetland replacement credits take several years to create. Issue: The Local Road Wetland Replacement Program (LRWRP) has been an integral part of the "no net loss" policy under the Wetlands Conservation Act (WCA) since 1996. Under the WCA, the reconstruction or rehabilitation of existing county, city and township roads to meet state or federal design or safety standards are exempt from wetland replacement requirements as long as wetland impacts are minimized. The Board of Water and Soil Resources (BWSR) is required to replace the wetlands lost as the result of the eligible local road reconstruction or rehabilitation. BWSR's obligation to replace the wetlands lost due to the eligible local road projects has been historically funded with the proceeds of GO bonds authorized in the biennial capital budget bills. Since 2010, the state has not been meeting the funding obligation as requested by BWSR. Year BWSR Capital Budget Request Governor's Recommendation Appropriation 2010 $8,420,000 $4,200,000 $2,500,000 2012 $13,100,000 $0 $6,000,000 2014 $5,400,000 $0 $2,000,000 2016 $10,330,000 $5,000,000 $0 As a result of the underfunding, BWSR has provided notice that it will not provide wetland replacement for LRWRP eligible projects in Washington County. By next summer, eligible local road projects in most of the state will be effected. Ultimately, eligible local road projects throughout the entire state will be delayed or shutdown. This is a statewide problem. Local governments have not budgeted to step in to meet the state's legal obligation to replace the lost wetlands and cannot legally increase 2017 property taxes to facilitate that even if they wanted to do so. The Legislature needs to act immediately to meet the state's legal obligation to fund the replacement of the affected wetlands and not make the already existing funding gaps for Minnesota local governments' transportation infrastructure even worse. Support and Opposition: 31