2008 Water Use Fee Increase - Questions and Answers

Water appropriation permit holders must submit an annual report of water use along with a water use fee that is based on the volume of water appropriated. Minnesota Statutes were amended in 2008 to increase annual water use fees.

Why were the water use fees increased? The fees were increased by the legislature as part of efforts to balance the budget. Water use fees were last increased in 2003.

When do the new fees take effect? The new fees are payable for all water use in 2008 and must be paid with the annual report of water use that is due on February 15, 2009. Please do not send water use reports or fees until notified near the end of this year.

What is the new fee schedule? The fee schedule may be found here. The minimum fee was raised to $140 for volumes appropriated under 50 million gallons. The remainder of the fee schedule was raised an additional $.50 per million gallons. Fees were also raised for once-through heating and cooling systems. The fee is $420 per million gallons with no maximum fee; however, non-profit corporations and school districts with once-through heating and cooling systems pay $200 per million gallons with no maximum fee.

Who benefits from these fees? These fees are paid by all large water users and are deposited in the State General Fund. The General Fund supports DNR water resource management programs including water use permitting, stream and lake gaging, ground water level monitoring, aquifer tests, well interference investigations, and technical studies of ground and surface water resources.

How much money will the new fee increase generate? The new fees will generate approximately $500,000 per year.