DRAFT - 2019 ENRTF Request for Proposal Page 1 Environment and Natural Resources Trust Fund (ENRTF) 2019 Request for Proposal Legislative-Citizen Commission on Minnesota Resources (LCCMR) www.lccmr.leg.mn Funding Priorities for 2019 -Foundational Natural Resource Data and Information -Water Resources -Environmental Education -Aquatic and Terrestrial Invasive Species -Air Quality, Climate Change, and Renewable Energy -Methods to Protect or Restore Land, Water, and Habitat -Land Acquisition, Habitat, and Recreation Funding Beginning: July 1, 2019 Deadline to Submit: 4:30 PM on Wednesday, March 21, 2018 -Electronic submission of proposals required. -Please carefully review the full text and follow the instructions of this document before submitting a proposal. -LCCMR staff are available to assist and review draft proposals if submitted by Wednesday, February 21, 2018. Early submission of drafts is recommended to receive the most detailed guidance. Funding Availability: -The LCCMR makes recommendations to the MN Legislature for project funding appropriations of up to 5.5% per year of the existing value of the Minnesota Environment and Natural Resources Trust Fund (ENRTF) on June 30 one year prior to the start of the next biennium. -This Request for Proposal (RFP) is for funds available beginning July 1, 2019. For that period, approximately $59 million from the ENRTF is projected to be available for project funding. -Through this RFP the LCCMR intends to make funding recommendations to the 2019 Minnesota Legislature. -This RFP is part of an annual cycle and the next RFP is expected to be issued in December 2018 for funds available July 1, 2020. Minnesota's Environment and Natural Resources Trust Fund: Minnesota Constitution Art. XI, Sec.14: "The assets of the fund shall be appropriated by law for the public purpose of protection, conservation, preservation, and enhancement of the state's air, water, land, fish, wildlife, and other natural resources." Page 2 Background Information Please carefully review the full text and follow the instructions of this document before submitting a proposal ELIGIBILITY-OPEN TO ALL: The spirit and intent of the LCCMR is to provide access to EVERYONE for innovative ideas for environmental or natural resource projects that could provide multiple ecological and other public benefits to Minnesota and are consistent with the LCCMR's Six-Year Strategic Plan for the Environment and Natural Resources Trust Fund and the adopted funding priorities described in this RFP. LCCMR staff are available to review drafts and assist in proposal development. Lobbying or professional grant-writing experience is not necessary for success. AMOUNT OF REQUEST There is no minimum or maximum amount that can be requested. Small funding requests will be equally considered for funding. Final recommendation amounts are determined by the dollars available and an aim to create a balanced package of projects addressing a variety of issue areas around the state. DEADLINE FOR SUBMISSION: 4:30 PM, Wednesday, March 21, 2018 THIS IS A FIRM DEADLINE. SUBMIT PROPOSAL: Online Submission of Proposals Required*. Go to: www.lccmr.leg.mn and select "2019 LCCMR Proposal Submission Form". Save a copy of your submission for your records. Upon receipt, all submitted proposals and budgets will be posted on the web for the public to view. *Contact LCCMR staff if unable to use the online proposal submission form. Project Implementation: Funding for selected projects will be available beginning July 1, 2019, following appropriation of funds by the legislature and work plan approval by the LCCMR. Funds for non-state entities are awarded on a reimbursement basis. EXPENSE ELIGIBILITY: See p. 14 for guidance on allowable expenses. PROPOSAL ASSISTANCE: LCCMR staff are available to provide assistance, answer questions, or review and provide feedback on drafts of proposals. Proposers are encouraged to submit proposal drafts to help ensure proposals are focused, clear, and contain all necessary information. Drafts must be received by Wednesday, February 21, 2018, to allow adequate time for staff review. Early submission of drafts is recommended to receive the most detailed guidance. If you have questions or would like proposal assistance, including direction on other state funding opportunities that may be appropriate for a project, contact LCCMR staff: Phone: (651) 296-2406 Email: lccmr@lccmr.leg.mn Address: Room 65 State Office Building 100 Rev. Dr. Martin Luther King Jr. Blvd St. Paul, MN 55155 Page 3 2019 Proposal and Funding Process December 2017 -LCCMR determines funding priorities and adopts 2019 Request for Proposal (RFP). -2019 RFP issued. -LCCMR staff available to review and provide feedback on any draft proposals submitted by February 21, 2018. March 2018 -Wednesday, February 21, 2018: Last day to submit draft proposals for LCCMR staff review. -Wednesday, March 21, 2018: Final Proposal Submission Deadline at 4:30 PM. SUMMER/FALL 2018 -All proposals are reviewed and evaluated using the criteria on page 8 of this RFP. -Based on the evaluations a subset of proposals is selected for further consideration and those proposers are invited in to give presentations before the LCCMR (planned for summer 2018) -After presentations final selection is made by LCCMR of proposals to be recommended to 2019 Minnesota Legislature for funding. SCIENTIFIC RESEARCH PROJECTS Recommended scientific research proposals undergo peer review. PROJECT WORK PLANS All recommended proposals submit detailed work plans to the LCCMR. JANUARY-MAY 2019 (Legislative Session) -The LCCMR funding recommendations are considered and acted upon by the Minnesota Legislature (House and Senate) and signed into law by the Governor. JUNE-JULY 2019 -June 2019: LCCMR approves work plans for funded proposals authorizing projects to begin July 1, 2019. -July 1, 2019: Money from the Environment and Natural Resources Trust Fund becomes available for projects to begin. REPORTING DURING PROJECT PERIOD AND PROJECT COMPLETION -Projects are required to provide status update reports twice per year, or approximately every six months. -Projects are required to submit a final report on project outcomes and results approximately 4-6 weeks after a project's designated completion date of June 30 of the year determined by the project's length. Page 4 2019 Funding Priorities -Projects are sought that provide multiple ecological and other public benefits. Projects should be innovative and must accelerate or supplement, not supplant, existing efforts. -Projects involving citizen science and community involvement in scientific efforts are encouraged, as appropriate. -Proposals pertaining to new or emerging environmental or natural resource issues not directly addressed in the below priorities, particularly issues that may have been unanticipated or emerged after issuance of this RFP, may also be eligible for consideration by the LCCMR. Proposers should contact LCCMR staff to discuss. -Other Funding Opportunities: As applicable, projects eligible for established, topic-specific state agency grant programs-such as for renewable energy, sustainable agriculture, clean water implementation, local parks and trails, and habitat acquisition and restoration-are encouraged to go directly to the particular state agency grant program as funds may be available in a more timely manner. Contact LCCMR staff for more information and guidance about these other established grant programs. -Project Eligibility: Projects being done to meet regulatory requirements will not be considered for funding. Proposals should address one or more of the seven funding priorities detailed below. The order of the priorities does not indicate a level of priority within the priorities. Proposals addressing prevention strategies for protecting natural resources are strongly encouraged. A. Foundational Natural Resource Data and Information Proposals must address one or more of the following: 1. Data acquisition, information management, research, or analysis to develop foundational natural resource, wildlife, pollinator, or plant data and information. 2. Coordination, facilitation, or training pertaining to statewide sharing, distribution, or innovative application of natural resource data (e.g., maps, inventories, and surveys) and information tools (e.g., Geographic Information Systems (GIS), Light Detection and Ranging (LiDAR), and other remote sensing techniques). 3. Quantification and analysis pertaining to the economic valuation of ecosystem services provided by natural resources, including analysis that quantifies public savings and costs of water or air pollution prevention. B. Water Resources Proposals must address one or more of the following: 1. Research, monitoring, or evaluation to increase protection, conservation, and sustainability of the quality, quantity, or function of water resources. This includes, but is not limited to, efforts pertaining to: i. Ground and surface water interaction, including stream flow and groundwater flow; ii. Aquifer recharge; iii. Wetland, river, and lake ecosystems, including Lake Superior; iv. Mitigation of impacts resulting from artificial hydrological modifications in both urban and agricultural areas; v. Effects of climate change on water resources; vi. Drinking Water 2. Research, evaluation, technology development, or engineering design pertaining to regulated, unregulated, or emerging water contaminants, including sources, fates, movements, or effects of these contaminants within ground or surface waters or across ecological communities. Contaminants of interest include, but are not limited to, nitrates, phosphates, estrogenic compounds, pharmaceuticals, personal care products, chlorides, PAHs (polycyclic aromatic hydrocarbons), and pesticides. Efforts pertaining to the following are of particular emphasis: i. Understanding the impacts of contaminants on the health of humans or terrestrial or aquatic species. ii. Preventing or reducing levels of contaminants in ground and surface waters. iii. Advancing development or implementation of standards for contaminants. Page 5 C. Environmental Education Proposals must address education, information dissemination, and training efforts that will increase the knowledge and skills of students or the public to cultivate a sustainable lifestyle, improve and maintain water quality, reduce and monitor energy and water consumption, or restore and maintain a healthy and biodiverse natural environment. Funding for capital projects (e.g., buildings or building infrastructure) will not be considered. Priority will be given to projects that address one or more of the following: -Efforts that involve broad-based partnerships, engage diverse and changing demographics, provide outdoor experiences, or are committed to building a long-lasting and action-based conservation ethic in a community. -Efforts that deliver and implement existing curriculum, especially integration of environmental education into school curriculum.Proposals to develop new curriculum will not be considered. D. Aquatic and Terrestrial Invasive Species "Invasive species" includes any plants, animals, worms, insects, microbes, and diseases that are non-native, introduced species in the state and that are currently having, or pose a threat to have, significant adverse impacts on Minnesota's native ecosystems and biodiversity. All research proposals related to invasive species research must consider the research priorities established by the U of M's Minnesota Invasive Terrestrial Plant Center or Minnesota Aquatic Invasive Species Center. All U of M proposals and others should apply to the Centers when applicable. The Centers will keep the LCCMR updated on the status of proposals received. Proposals must address one or more of the following: 1. Prevent introduction or provide early detection of new invasive species. 2. Reduce the spread of invasive species with best management practices along streams, rivers, land transportation routes, and other vectors. 3. Alternative control techniques-particularly involving biocontrol, integrated pest management, or minimization of non-target effects including pollinators-for containing or suppressing invasive species already present in Minnesota. Standard control, removal, and maintenance activities of invasive species will not be considered. 4. Restore lands with native vegetation as practicable following implementation of invasive species control techniques on disturbed lands where a native seed bank no longer exists. 5. Inform and educate landowners about all invasive species threats to their land and offer actions they can take in response. E. Air Quality, Climate Change, and Renewable Energy Funding for capital projects (e.g., buildings or building infrastructure) will not be considered. Proposals must address one or more of the following: 1. Innovative approaches to air quality improvement that reduce impacts on human health, the environment, or natural resources, such as by preventing, reducing, or mitigating airborne contaminants including PAHs (polycyclic aromatic hydrocarbons). 2. Acquisition of data at a scale appropriate to assess natural resource changes attributable to climate change. 3. Research to help understand how to mitigate, adapt, or make Minnesota's ecosystems more resilient to climate change impacts, including drought and extreme weather events. 4. Implementation of innovative efforts aimed at mitigating, adapting, or making Minnesota's ecosystems more resilient to climate change impacts, including drought and extreme weather events. 5. Reduction of greenhouse gas emissions through new and innovative approaches to waste reduction or energy efficiency. Standard, required, and ongoing efforts will not be considered. Page 6 F. Methods to Protect or Restore Land, Water, and Habitat Activities should utilize native species and follow LCCMR restoration and evaluation requirements (see p.7 for additional project requirements pertaining to this category). Proposals must address one or more of the following: 1. Innovative protection or restoration of lands with high-quality natural resources, ecological value, water protection value, or habitat, particularly for pollinators. 2. Long term preservation of native forest, wetland, or prairie plant genetics and viability. 3. Technical assistance for stewardship of prairies, forests, wetlands, or other habitat, or technical assistance for agricultural land management in order to protect water quality and aquatic habitat or to improve pollinator habitat. 4. Planning and implementation of community-based efforts to permanently conserve natural resources and reduce habitat fragmentation impacts on natural resources, including the impacts of transportation and other infrastructure. G. Land Acquisition, Habitat, and Recreation Proposals must address acquisition or development of strategic lands with: i. High quality natural resources, ecological value, recreational value, water protection value, or habitat, particularly for pollinators; and ii. The greatest capacity to contribute multiple conservation benefits to wildlife, humans, and ground and surface water quality. All lands to be acquired or developed should be part of an adopted state, regional, or local natural resource plan and a restoration or management plan for the site must be created. Proposals should provide an explanation as to how such plans will be developed, implemented, and funded. Priority will be given to projects that address one or more of the following (see p.7 for additional project requirements pertaining to this category): 1. Efforts based on precision conservation methods and analysis that quantifiably identify the lands most critical to acquire. Precision conservation is a practice that considers lands in terms of the interconnected systems of which they are a part. As a practice, precision conservation compiles and integrates multiple types of available data layers and analysis (e.g., terrain analysis, soil productivity, habitat potential, economic analysis, erosion potential, proximity to surface water) to identify and guide efforts that will maximize conservation benefits. 2. Efforts involving Scientific and Natural Areas (SNA) or other areas that aim to protect unique ecosystems, such as native prairie as defined in M.S. 84.02, Subd. 5, or rare, endangered, or threatened species. Areas of these types that may not presently qualify as a priority for other State of Minnesota funds directed toward land acquisition for habitat or recreation are of particular interest. 3. Efforts that enhance habitat connectivity, benefit ground or surface water quality, improve access for natural resource management, or increase public access for recreation, particularly in areas of the state with limited protected public lands. 4. Efforts expanding outdoor recreational opportunities through additions and connections to state, regional or local parks and trails. Page 7 Requirements and Evaluation Criteria Project Requirements -Expenditures must strictly adhere to Article XI, Section 14 of the Minnesota Constitution and M.S. 116P.08, the laws governing expenditure of the Environment and Natural Resources Trust Fund (pg. 15). -Applicant organizations must have a current external financial audit, or equivalent, with no serious negative findings, and demonstrate a capability to successfully manage and implement the project being proposed, including having the necessary organizational financial and managerial structures and controls. -Non-profit organizations must provide 990 tax information from the previous three years and submit a copy of their most recent GuideStar report . GuideStar is a 501(c)(3) that provides information on all IRS registered nonprofits. -Funds requested are generally expected to be expended and activities completed within 36 months or less. If additional time is needed, explain in the "Timeline Requirements" section (section III-C) of the main proposal. -Land acquisition projects have the following additional requirements: 1. First priority must be given to lands with high quality natural resources that provide multiple benefits and that provide natural buffers to water resources. 2. Lands cannot already be fully or partially protected by state ownership or state funds, per M.S. 116P.18. 3. Targeted lands should be identified in an adopted state, regional, or local natural resource plan. 4. Conservation easements must be perpetual. Proposals must provide an explanation of how monitoring and enforcement of the conditions of any conservation easements will be ensured in perpetuity. 5. All conservation easements must be permanent, specify the parties to an easement in the easement, specify all of the provisions of an agreement that are permanent, be sent to the Legislative-Citizen Commission on Minnesota Resources in an electronic format at least ten business days prior to closing, include a long-term monitoring and enforcement plan, and include requirements in the easement document to address specific groundwater and surface water quality protection activities such as keeping water on the landscape, reducing nutrient and contaminant loading, protecting groundwater, and not permitting artificial hydrological modifications 6. Explanation must be provided for how a restoration or management plan for the site will be developed, implemented, and funded (through this funding request or other funds). 7. A list must be provided that identifies proposed acquisitions and restorations by parcel name, geographic coordinates (latitude/longitude), estimated cost, county, ecological significance, activity description, proposed number of acres, proposed shoreline miles, type of landowner, and proposed title/easement holder (if applicable). A list template with instructions is available at www.lccmr.leg.mn. -Restoration projects 1) must occur on public lands or lands that are otherwise permanently protected, 2) must follow MN Board of Water and Soil Resources "Native Vegetation Establishment and Enhancement Guidelines" (http://www.bwsr.state.mn.us/native_vegetation/seeding_guidelines.pdf) and 3) must follow restoration and evaluation practices "Restoration Evaluation Project: Vegetation Monitoring Tool", "Advancing Ecological Restoration Practice in Minnesota", "Vegetation Monitoring Protocol", and "Implementing Planning: Guidance For Determining Best Practices For Restoring Minnesota Ecosystems". -Any royalties, copyrights, patents, or sale of products or assets resulting from a project are subject to revenue sharing requirements outlined in M.S. 116P.10. -All projects are subject to additional requirements including accessibility, data availability, land acquisition requirements, energy conservation and sustainable building guidelines, and recyclable material requirements. Information located at www.lccmr.leg.mn titled "Additional Proposal Requirements". Page8 Requirements and Evaluation Criteria Evaluation Criteria All proposals should strive to maximize efficiency and return on investment for the proposed expenditures. Additionally the following criteria, as applicable, will be considered in evaluating proposals (additional explanation of evaluation criteria is available at www.lccmr.leg.mn titled "Additional Explanation of Evaluation Criteria"): 1. FUNDING PRIORITIES: Responds to RFP funding priorities and LCCMR Six-Year Strategic Plan for the Environment and Natural Resources Trust Fund articulated and adopted by the LCCMR. 2. MULTIPLE BENEFITS: Delivers multiple benefits to Minnesota's environment and natural resources. 3. OUTCOMES: Identifies clear objectives likely to result in measurable, demonstrated, and meaningful outcomes. 4. KNOWLEDGE BASE: Contributes to knowledge base or disseminates information that will benefit other efforts. 5. EXTENT OF IMPACTS: Results in broad, long-term impacts of statewide or regional significance. 6. INNOVATION: Employs or demonstrates innovative approaches to more effectively and efficiently solve specific environment and natural resources issues. 7. SCIENTIFIC/TECHNICAL BASIS: Reflects current scientific and technical knowledge, standards, and best practices. 8. URGENCY: Addresses an issue for which immediate future action is necessary and essential to avoid undesirable consequences. 9. CAPACITY AND READINESS: Demonstrates capacity and readiness for efforts to be managed and completed in a timely, accountable, and effective manner. 10. LEVERAGE: Leverages collaborative partnerships and additional efforts, resources, and non-state funds. Instructions for submission form pages 9 through 13 Page 14 Guidance on Allowable Expenses Eligible Expenses Eligible expenses are those expenses solely incurred through project activities that are directly related to and necessary for producing the project outcomes described in the proposal. All proposed expenses must be specified in the proposal submitted. Please note that for non-state entities all funds are awarded on a reimbursement basis, unless otherwise authorized, and all eligible expenses will need to be documented. Eligible expenses may include: a. Eligible expenditures incurred only after the effective date as approved by LCCMR. b. Wages and expenses of salaried Recipient employees if specified, documented, and approved. For State Agencies: use of unclassified staff only OR request approval for the use of classified staff accompanied by an explanation of how the agency will backfill that part of the classified staff salary proposed to be paid for with these funds. This is subject to specific discussion and approval by LCCMR. c. Fringe benefit expenses, such as FICA/Medicare, retirement, and health insurance of Recipient's employees, if specified. d. Professional and technical services specified in the approved Work Plan that are rendered by individuals or organizations not a part of the Recipient; e. Equipment, tools, materials, and supplies specific to the project and incoming freight charges for them. f. Capital expenditures for facilities, equipment, and other capital assets as expressly approved. For expenditures greater than $5,000, the Recipient must provide an explanation as to how all the equipment purchased with the appropriation will continue to be used for the same program through its useful life, or, if the use changes, a commitment to pay back to the Environment and Natural Resources Trust Fund an amount equal to either the cash value received or a residual value approved by the director of the LCCMR if it is not sold. g. Publication and printing/copying expenses necessary for contract administration, work products production, and semi-annual reports relating to accomplishments. h. In-state transportation and travel expenses such as lodging, meals, and mileage of personnel directly involved in the Project in the same manner and in no greater amount than provided for in the current "Commissioner's Plan" promulgated by the Commissioner of Management of Budget and as provided by LCCMR or, for University of Minnesota projects, the University of Minnesota plan found at http://policy.umn.edu/policies/finance/travel/travel.html. Allowable meal and lodging expenses are for employees only. Purchasing meals or providing lodging for others is not an allowable expense. Generally Ineligible Expenses-Unless Explicitly Approved Generally ineligible expenses for reimbursement mean all expenses not defined as eligible expenses, but for which an explicit exception can be sought from LCCMR if the expenses can be clearly justified and individually documented as directly related to and necessary for a project. No broad allocations for costs in either dollars or percentages are allowed. In deciding whether to seek exception for these costs consider that cash and in-kind leverage are criteria considered in proposal evaluation. Generally ineligible expenses include but are not limited to: a. General operations, overhead, and other indirect expenses, including office maintenance, office utility expenses, and office materials and supplies. b. Office rental fees (including storage space rental). c. Communication expenses incurred for telephone calls, web access, postage, and similar services. d. Insurance, except title insurance. e. Attorney fees, except to acquire and clear title to land. g. Purchase of communication devices such as pagers, cell phones, or smart phones. Purchase of computers, tablets, or audiovisual equipment. h. Generally available food and refreshments, except if explicitly approved for certain types of events. i. Conference attendance and associated costs and fees, except if to participate in formal presentation of project findings. j. Out of state transportation and travel expenses. Prohibited Expenses Prohibited expenses for reimbursement mean all expenses indicated below, including but not limited to: a. Any expenses incurred before the project is authorized, before July 1, 2019, or before LCCMR work plan approval-whichever is latest. b. Fundraising. c. Taxes, except sales tax on goods and services. d. Lobbyists or political contributions. e. Advertising and marketing expenses. f. Loans, grants, or subsidies to persons or entities for development. g. Bad debts, late payment fees, finance charges, or contingency funds. h. Interest or investment management fees. i. Directors or officers salary. j. Merit awards and bonuses. k. Memberships (including subscriptions and dues). l. Publications, periodicals, and subscriptions. m. Employee workplace parking. n. Entertainment, decorations, gifts, and prizes. Page 15 Environment and Natural Resources Trust Fund: MN Constitution and Statutory Expenditures Minnesota Constitution Art. XI, Sec.14: Environment and Natural Resources Trust Fund Established http://www.lccmr.leg.mn/about/language-index.html A permanent environment and natural resources trust fund is established in the state treasury. Loans may be made of up to five percent of the principal of the fund for water system improvements as provided by law. The assets of the fund shall be appropriated by law for the public purpose of protection, conservation, preservation, and enhancement of the state's air, water, land, fish, wildlife, and other natural resources. The amount appropriated each year of a biennium, commencing on July 1 in each odd-numbered year and ending on and including June 30 in the next odd-numbered year, may be up to 5-1/2 percent of the market value of the fund on June 30 one year before the start of the biennium. Not less than 40 percent of the net proceeds from any state-operated lottery must be credited to the fund until the year 2025. [Adopted, November 8, 1988; Amended, November 6, 1990; November, 1998] MS 116P.08 Environment and Natural Resources Trust Fund Expenditures and Exceptions https://www.revisor.mn.gov/statutes/?id=116P&view=chapter#stat.116P.08 Subdivision 1. Expenditures. Money in the trust fund may be spent ONLY for: 1. the reinvest in Minnesota program as provided in section 84.95, subd. 2; 2. research that contributes to increasing the effectiveness of protecting or managing the state's environment or natural resources; 3. collection and analysis of information that assists in developing the state's environmental and natural resources policies; 4. enhancement of public education, awareness, and understanding necessary for the protection, conservation, restoration, and enhancement of air, land, water, forests, fish, wildlife, and other natural resources; 5. capital projects for the preservation and protection of unique natural resources; 6. activities that preserve or enhance fish, wildlife, land, air, water, and other natural resources that otherwise may be substantially impaired or destroyed in any area of the state; 7. administrative and investment expenses incurred by the state board of investment in investing deposits to the trust fund; and 8. administrative expenses subject to the limits in section 116P.09. (b) In making recommendations for expenditures from the trust fund, the commission shall give priority to funding programs and projects under paragraph (a), clause (1) and (6). Any request for proposals issued by the commission shall clearly indicate these priorities. Subdivision 2. Exceptions. Money from the trust fund may not be spent for: 1. purposes of environmental compensation and liability under chapter 115B and response action under chapter 115C; 2. purposes of municipal water pollution control under the authority of chapters 115 and 116; 3. costs associated with the decommissioning of nuclear power plants; 4. hazardous waste disposal facilities; 5. solid waste disposal facilities; or 6 projects or purposes inconsistent with the strategic plan.