Subd. 1. Program established.

The commissioner may design and construct, or may make grants to eligible grantees as provided under this section to design and construct, projects to provide safe drinking water, due to contamination of drinking water by hazardous substances, through projects such as treatment systems, new drinking water wells, sealing contaminated wells, and connecting to alternative drinking water sources. The criteria for selecting projects must follow the criteria and rules established under section 115B.17.

Subd. 2. Definitions.

1. (a) For purposes of this section, the following terms have the meanings given.

2. (b) "Eligible grantee" means:

   1. (1) for projects funded from the statewide drinking water contamination mitigation account in the bond proceeds fund, a city, county, school district, joint powers board, or other political subdivision of the state; and
   2. (2) for projects funded from the statewide drinking water contamination mitigation account in the general fund, any person.
3. (c) "Private infrastructure projects" means improvements made to nonpublicly owned infrastructure such as sealing of private wells, connecting private properties to water mains, water service fees, treatment systems, and drilling new private wells in an unimpaired drinking water aquifer.
4. (d) "Public infrastructure projects" means improvements made to publicly owned infrastructure such as water main installation, public water system improvements, treatment systems, and associated improvements.

Subd. 3. Accounts.

1. (a) A statewide drinking water contamination mitigation account is established in the bond proceeds fund. The account consists of state bond proceeds appropriated to the commissioner for this purpose. Money in the account may only be expended to acquire land or an interest in land and predesign, design, construct, and improve public infrastructure projects that further the purposes of this section. Notwithstanding section 115B.17, subdivision 6 or 16, any money recovered in a civil action for a project financed with bonds under this section shall be transferred to the commissioner of management and budget and applied toward principal and interest on outstanding bonds.
2. (b) A statewide drinking water contamination mitigation account is established in the general fund. The account consists of money as provided by law and any other money donated, allotted, transferred, or otherwise provided to the account. Money in the account may only be expended on public or private infrastructure projects that further the purposes of this section.