The bill appropriates $12,189,000 from the bond proceeds fund to the Public Facilities Authority for a grant to the city of Palisade. This funding is designated for the predesign, design, construction, furnishing, and equipping of improvements to the city's clean water and wastewater infrastructure. Specific projects include the construction of a new water treatment plant, rehabilitation of existing municipal wells, the addition of a new municipal well, and various upgrades to the wastewater treatment facility and sanitary collection system.

To finance this appropriation, the bill authorizes the commissioner of management and budget to sell and issue state bonds up to the amount of $12,189,000, following the procedures outlined in Minnesota Statutes and the Minnesota Constitution. The effective date of this section is set for the day following its final enactment.