HF1364

This bill appropriates funds for the Local Road Wetland Replacement Program in Minnesota. It allocates:

• $15 million from bond proceeds and $11.5 million from the general fund in fiscal year 2026 to the Board of Water and Soil Resources for acquiring land or easements and restoring, creating, enhancing, and preserving wetlands. These wetlands will replace those drained or filled due to public road repairs or reconstruction as required by state law.
• $15 million in fiscal year 2027 from the general fund for the same purposes.

The Board may adjust the priority order for wetland replacement projects following an in-lieu fee agreement approved by the U.S. Army Corps of Engineers. The land or easement acquisitions must be at fair market value, and the Board is authorized to collaborate with federal and state entities, nonprofits, and private owners to obtain wetland replacement credits.

The bill also authorizes the sale and issuance of state bonds up to $15 million to fund the program.