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reserved capacity had to be developed. Following intensive study and discussion with Communities, the SAC system of paying for reserved capacity was developed and instituted in 1973. While the SAC system proved acceptable to most Communities in the early stages of development, other Communities challenged the SAC system in court. In a District court ruling, later upheld by the Minnesota Supreme Court,the SAC system was found consistent with state law authorizing SAC. In 1986,the Metropolitan Waste Control Commission(MWCC),predecessor of MCES, again addressed the question of who should pay SAC.Discussions centered on the fact that some Communities had not extended their sewers to all properties for which SAC had been paid.As a result,beginning in January 1987,a new SAC policy exempted SAC for those buildings that did not have sewer service available. Communities would pay SAC for exempted properties when hookup to the MDS became possible. The MWCC also approved a SAC Rebate Program that made rebates available to Communities that paid SAC when buildings were not yet connected directly or indirectly to the interceptor pipes or treatment facilities.The program was optional. If Communities accepted the Rebate Program,they were rebated the amount originally charged for service. Those not receiving rebates could still receive Credit when the buildings were connected to the MDS. Communities had from January 1, 1987,through December 31, 1989 to apply for rebates. In 2006,the Council adopted new rules for SAC Credits,but after discussion with Communities the effective date of the rules was delayed until January 1,2010. The two major changes were: i)Credits for a change of use(e.g.remodeling)to be based on the highest use in a Look-Back Period, instead of the prior Grandparent and SAC payment history; and ii)no Net Credits from redevelopment of a Site allowed(except that approved Phased Development Plans allow a Credit-like reservation for delayed,but planned, development). In 2010,the Minnesota state legislature amended Minnesota Statute 473.517, subdivision 3 to recognize that occasionally the wastewater reserved capacity fund may not be able to pay the share anticipated, and some of the SAC requirement may need to be temporarily"shifted"from SAC to the municipal wastewater charges.A"SAC shift"was incorporated into 2011 and 2012 rates. This authority will sunset in 2015. In late 2010,the Council adopted the recommendations of a year-long task force of SAC stakeholders. The report is available online. In 2011 recommendations from the 2010 task force that were implemented included a provision to allow i)a new Temporary Capacity Charge as a voluntary(Community choice)and temporary substitute for SAC for temporary wastewater demand, ii)a change from two restaurant criteria to one,and iii)a change from two daycare facility criteria to one. However,the portion of the recommendation that required legislation was not introduced in 2011 and failed in 2012. In 2011 an informal SAC work group recommended some improvements in outreach,but did not support the idea of small business deferrals from MCES or a change in Net Credits that were also discussed.The report is available online. In 2012 another informal work group did support substantial changes in Credit procedures, including a resumption of generation of Net Credits where SAC was paid(but not for Non-Conforming Demand),the implementation of a small business deferral program and minor service changes. The report is available online.These changes were adopted,with a modification to allow for 5 years a Site-Specific Credit for unused Non-Conforming Grandparent Demand,by the Council in late 2012 and incorporated herein. Page 9