HF 3731

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/07/2024 04:31pm

A bill for an act
relating to environment; providing for recovering waste heat from wastewater;
amending Minnesota Statutes 2022, sections 116D.02, subdivision 2; 216B.2427,
subdivision 1; Minnesota Statutes 2023 Supplement, section 115.03, subdivision
1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 115.03, subdivision 1, is amended
to read:

Subdivision 1.

Generally.

(a) The commissioner is given and charged with the following
powers and duties:

(1) to administer and enforce all laws relating to the pollution of any of the waters of
the state;

(2) to investigate the extent, character, and effect of the pollution of the waters of this
state and to gather data and information necessary or desirable in the administration or
enforcement of pollution laws, and to make such classification of the waters of the state as
it may deem advisable;

(3) to establish and alter such reasonable pollution standards for any waters of the state
in relation to the public use to which they are or may be put as it shall deem necessary for
the purposes of this chapter and, with respect to the pollution of waters of the state, chapter
116;

(4) to encourage waste treatment, including advanced waste treatment, instead of stream
low-flow augmentation for dilution purposes to control and prevent pollution;

(5) to adopt, issue, reissue, modify, deny, or revoke, enter into or enforce reasonable
orders, permits, variances, standards, rules, schedules of compliance, and stipulation
agreements, under such conditions as it may prescribe, in order to prevent, control or abate
water pollution, or for the installation or operation of disposal systems or parts thereof, or
for other equipment and facilities:

(i) requiring the discontinuance of the discharge of sewage, industrial waste or other
wastes into any waters of the state resulting in pollution in excess of the applicable pollution
standard established under this chapter;

(ii) prohibiting or directing the abatement of any discharge of sewage, industrial waste,
or other wastes, into any waters of the state or the deposit thereof or the discharge into any
municipal disposal system where the same is likely to get into any waters of the state in
violation of this chapter and, with respect to the pollution of waters of the state, chapter
116, or standards or rules promulgated or permits issued pursuant thereto, and specifying
the schedule of compliance within which such prohibition or abatement must be
accomplished;

(iii) prohibiting the storage of any liquid or solid substance or other pollutant in a manner
which does not reasonably assure proper retention against entry into any waters of the state
that would be likely to pollute any waters of the state;

(iv) requiring the construction, installation, maintenance, and operation by any person
of any disposal system or any part thereof, or other equipment and facilities, or the
reconstruction, alteration, or enlargement of its existing disposal system or any part thereof,
or the adoption of other remedial measures to prevent, control or abate any discharge or
deposit of sewage, industrial waste or other wastes by any person;

(v) establishing, and from time to time revising, standards of performance for new sources
taking into consideration, among other things, classes, types, sizes, and categories of sources,
processes, pollution control technology, cost of achieving such effluent reduction, and any
nonwater quality environmental impact and energy requirements. Said standards of
performance for new sources shall encompass those standards for the control of the discharge
of pollutants which reflect the greatest degree of effluent reduction which the agency
determines to be achievable through application of the best available demonstrated control
technology, processes, operating methods, or other alternatives, including, where practicable,
a standard permitting no discharge of pollutants. New sources shall encompass buildings,
structures, facilities, or installations from which there is or may be the discharge of pollutants,
the construction of which is commenced after the publication by the agency of proposed
rules prescribing a standard of performance which will be applicable to such source.
Notwithstanding any other provision of the law of this state, any point source the construction
of which is commenced after May 20, 1973, and which is so constructed as to meet all
applicable standards of performance for new sources shall, consistent with and subject to
the provisions of section 306(d) of the Amendments of 1972 to the Federal Water Pollution
Control Act, not be subject to any more stringent standard of performance for new sources
during a ten-year period beginning on the date of completion of such construction or during
the period of depreciation or amortization of such facility for the purposes of section 167
or 169, or both, of the Federal Internal Revenue Code of 1954, whichever period ends first.
Construction shall encompass any placement, assembly, or installation of facilities or
equipment, including contractual obligations to purchase such facilities or equipment, at
the premises where such equipment will be used, including preparation work at such
premises;

(vi) establishing and revising pretreatment standards to prevent or abate the discharge
of any pollutant into any publicly owned disposal system, which pollutant interferes with,
passes through, or otherwise is incompatible with such disposal system;

(vii) requiring the owner or operator of any disposal system or any point source to
establish and maintain such records, make such reports, install, use, and maintain such
monitoring equipment or methods, including where appropriate biological monitoring
methods, sample such effluents in accordance with such methods, at such locations, at such
intervals, and in such a manner as the agency shall prescribe, and providing such other
information as the agency may reasonably require;

(viii) notwithstanding any other provision of this chapter, and with respect to the pollution
of waters of the state, chapter 116, requiring the achievement of more stringent limitations
than otherwise imposed by effluent limitations in order to meet any applicable water quality
standard by establishing new effluent limitations, based upon section 115.01, subdivision
13, clause (b), including alternative effluent control strategies for any point source or group
of point sources to insure the integrity of water quality classifications, whenever the agency
determines that discharges of pollutants from such point source or sources, with the
application of effluent limitations required to comply with any standard of best available
technology, would interfere with the attainment or maintenance of the water quality
classification in a specific portion of the waters of the state. Prior to establishment of any
such effluent limitation, the agency shall hold a public hearing to determine the relationship
of the economic and social costs of achieving such limitation or limitations, including any
economic or social dislocation in the affected community or communities, to the social and
economic benefits to be obtained and to determine whether or not such effluent limitation
can be implemented with available technology or other alternative control strategies. If a
person affected by such limitation demonstrates at such hearing that, whether or not such
technology or other alternative control strategies are available, there is no reasonable
relationship between the economic and social costs and the benefits to be obtained, such
limitation shall not become effective and shall be adjusted as it applies to such person;

(ix) modifying, in its discretion, any requirement or limitation based upon best available
technology with respect to any point source for which a permit application is filed after July
1, 1977, upon a showing by the owner or operator of such point source satisfactory to the
agency that such modified requirements will represent the maximum use of technology
within the economic capability of the owner or operator and will result in reasonable further
progress toward the elimination of the discharge of pollutants; and

(x) requiring that applicants for wastewater discharge permits evaluate in their
applications the potential reuses of the discharged wastewater;

(6) to require to be submitted and to approve plans and specifications for disposal systems
or point sources, or any part thereof and to inspect the construction thereof for compliance
with the approved plans and specifications thereof;

(7) to prescribe and alter rules, not inconsistent with law, for the conduct of the agency
and other matters within the scope of the powers granted to and imposed upon it by this
chapter and, with respect to pollution of waters of the state, in chapter 116, provided that
every rule affecting any other department or agency of the state or any person other than a
member or employee of the agency shall be filed with the secretary of state;

(8) to conduct such investigations, issue such notices, public and otherwise, and hold
such hearings as are necessary or which it may deem advisable for the discharge of its duties
under this chapter and, with respect to the pollution of waters of the state, under chapter
116, including, but not limited to, the issuance of permits, and to authorize any member,
employee, or agent appointed by it to conduct such investigations or, issue such notices and
hold such hearings;

(9) for the purpose of water pollution control planning by the state and pursuant to the
Federal Water Pollution Control Act, as amended, to establish and revise planning areas,
adopt plans and programs and continuing planning processes, including, but not limited to,
basin plans and areawide waste treatment management plans, and to provide for the
implementation of any such plans by means of, including, but not limited to, standards, plan
elements, procedures for revision, intergovernmental cooperation, residual treatment process
waste controls, and needs inventory and ranking for construction of disposal systems;

(10) to train water pollution control personnel and charge training fees as are necessary
to cover the agency's costs. All such fees received must be paid into the state treasury and
credited to the Pollution Control Agency training account;

(11) to provide chloride reduction training and charge training fees as necessary to cover
the agency's costs not to exceed $350. All training fees received must be paid into the state
treasury and credited to the Pollution Control Agency training account;

(12) to impose as additional conditions in permits to publicly owned disposal systems
appropriate measures to insure compliance by industrial and other users with any pretreatment
standard, including, but not limited to, those related to toxic pollutants, and any system of
user charges ratably as is hereby required under state law or said Federal Water Pollution
Control Act, as amended, or any regulations or guidelines promulgated thereunder;

(13) to set a period not to exceed five years for the duration of any national pollutant
discharge elimination system permit or not to exceed ten years for any permit issued as a
state disposal system permit only;

(14) to require each governmental subdivision identified as a permittee for a wastewater
treatment works to evaluate in every odd-numbered year the condition of its existing system
and identify future capital improvements that will be needed to attain or maintain compliance
with a national pollutant discharge elimination system or state disposal system permit; deleted text begin and
deleted text end

(15) to train subsurface sewage treatment system personnel, including persons who
design, construct, install, inspect, service, and operate subsurface sewage treatment systems,
and charge fees as necessary to pay the agency's costs. All fees received must be paid into
the state treasury and credited to the agency's training account. Money in the account is
appropriated to the agency to pay expenses related to training deleted text begin . deleted text end new text begin ; and
new text end

new text begin (16) to encourage practices that enable the recovery and use of waste heat from
wastewater treatment operations, in accordance with the federal Clean Water Act, United
States Code, title 33, section 1281(e).
new text end

(b) The information required in paragraph (a), clause (14), must be submitted in every
odd-numbered year to the commissioner on a form provided by the commissioner. The
commissioner shall provide technical assistance if requested by the governmental subdivision.

(c) The powers and duties given the agency in this subdivision also apply to permits
issued under chapter 114C.

Sec. 2.

Minnesota Statutes 2022, section 116D.02, subdivision 2, is amended to read:

Subd. 2.

State responsibilities.

In order to carry out the policy set forth in Laws 1973,
chapter 412, it is the continuing responsibility of the state government to use all practicable
means, consistent with other essential considerations of state policy, to improve and
coordinate state plans, functions, programs and resources to the end that the state may:

(1) fulfill the responsibilities of each generation as trustee of the environment for
succeeding generations;

(2) assure for all people of the state safe, healthful, productive, and aesthetically and
culturally pleasing surroundings;

(3) discourage ecologically unsound aspects of population, economic and technological
growth, and develop and implement a policy such that growth occurs only in an
environmentally acceptable manner;

(4) preserve important historic, cultural, and natural aspects of our national heritage,
and maintain, wherever practicable, an environment that supports diversity, and variety of
individual choice;

(5) encourage, through education, a better understanding of natural resources management
principles that will develop attitudes and styles of living that minimize environmental
degradation;

(6) develop and implement land use and environmental policies, plans, and standards
for the state as a whole and for major regions thereof through a coordinated program of
planning and land use control;

(7) define, designate, and protect environmentally sensitive areas;

(8) establish and maintain statewide environmental information systems sufficient to
gauge environmental conditions;

(9) practice thrift in the use of energy and maximize the use of energy efficient systems
for deleted text begin the utilization of deleted text end new text begin producing, distributing, and using new text end energy, new text begin including recovering and
reusing waste heat, new text end and minimize the environmental impact from energy production and
use;

(10) preserve important existing natural habitats of rare and endangered species of plants,
wildlife, and fish, and provide for the wise use of our remaining areas of natural habitation,
including necessary protective measures where appropriate;

(11) reduce wasteful practices which generate solid wastes;

(12) minimize wasteful and unnecessary depletion of nonrenewable resources;

(13) conserve natural resources and minimize environmental impact by encouraging
deleted text begin extension of deleted text end new text begin extended new text end product deleted text begin lifetime, by deleted text end new text begin lifetimes; new text end reducing deleted text begin the number of deleted text end unnecessary
and wasteful materials practices deleted text begin , deleted text end new text begin ; new text end and deleted text begin by deleted text end recycling materials new text begin , water, and energy new text end to conserve
deleted text begin both materials and energy deleted text end new text begin virgin resources new text end ;

(14) improve management of renewable resources in a manner compatible with
environmental protection;

(15) provide for reclamation of mined lands and assure that any mining is accomplished
in a manner compatible with environmental protection;

(16) reduce the deleterious impact on air and water quality from all sources, including
the deleterious environmental impact due to operation of vehicles with internal combustion
engines in urbanized areas;

(17) minimize noise, particularly in urban areas;

(18) prohibit, where appropriate, floodplain development in urban and rural areas; and

(19) encourage advanced waste treatment in abating water pollution new text begin , including practices
that enable the recovery and use of waste heat from wastewater treatment operations, in
accordance with the federal Clean Water Act, United States Code, title 33, section 1281(e) new text end .

Sec. 3.

Minnesota Statutes 2022, section 216B.2427, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section and section 216B.2428,
the following terms have the meanings given.

(b) "Biogas" means gas produced by the anaerobic digestion of biomass, gasification of
biomass, or other effective conversion processes.

(c) "Carbon capture" means the capture of greenhouse gas emissions that would otherwise
be released into the atmosphere.

(d) "Carbon-free resource" means an electricity generation facility whose operation does
not contribute to statewide greenhouse gas emissions, as defined in section 216H.01,
subdivision 2.

(e) "District energy" means a heating or cooling system that is solar thermal powered
or that uses new text begin groundwater, underground aquifers, raw or treated wastewater, or new text end the constant
temperature of the earth deleted text begin or underground aquifers deleted text end as a thermal exchange medium to heat or
cool multiple buildings connected through a piping network.

(f) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
paragraph (f), but does not include energy conservation investments that the commissioner
determines could reasonably be included in a utility's conservation improvement program.

(g) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous
oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by
anthropogenic sources within Minnesota and from the generation of electricity imported
from outside the state and consumed in Minnesota, excluding carbon dioxide that is injected
into geological formations to prevent its release to the atmosphere in compliance with
applicable laws.

(h) "Innovative resource" means biogas, renewable natural gas, power-to-hydrogen,
power-to-ammonia, carbon capture, strategic electrification, district energy, and energy
efficiency.

(i) "Lifecycle greenhouse gas emissions" means the aggregate greenhouse gas emissions
resulting from the production, processing, transmission, and consumption of an energy
resource.

(j) "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas
emissions per unit of energy delivered to an end user.

(k) "Nonexempt customer" means a utility customer that has not been included in a
utility's innovation plan under subdivision 3, paragraph (f).

(l) "Power-to-ammonia" means the production of ammonia from hydrogen produced
via power-to-hydrogen using a process that has a lower lifecycle greenhouse gas intensity
than does natural gas produced from conventional geologic sources.

(m) "Power-to-hydrogen" means the use of electricity generated by a carbon-free resource
to produce hydrogen.

(n) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1.

(o) "Renewable natural gas" means biogas that has been processed to be interchangeable
with, and that has a lower lifecycle greenhouse gas intensity than, natural gas produced
from conventional geologic sources.

(p) "Solar thermal" has the meaning given to qualifying solar thermal project in section
216B.2411, subdivision 2, paragraph (d).

(q) "Strategic electrification" means the installation of electric end-use equipment in an
existing building in which natural gas is a primary or back-up fuel source, or in a newly
constructed building in which a customer receives natural gas service for one or more
end-uses, provided that the electric end-use equipment:

(1) results in a net reduction in statewide greenhouse gas emissions, as defined in section
216H.01, subdivision 2, over the life of the equipment when compared to the most efficient
commercially available natural gas alternative; and

(2) is installed and operated in a manner that improves the load factor of the customer's
electric utility.

Strategic electrification does not include investments that the commissioner determines
could reasonably be included in the natural gas utility's conservation improvement program
under section 216B.241.

(r) "Total incremental cost" means the calculation of the following components of a
utility's innovation plan approved by the commission under subdivision 2:

(1) the sum of:

(i) return of and on capital investments for the production, processing, pipeline
interconnection, storage, and distribution of innovative resources;

(ii) incremental operating costs associated with capital investments in infrastructure for
the production, processing, pipeline interconnection, storage, and distribution of innovative
resources;

(iii) incremental costs to procure innovative resources from third parties;

(iv) incremental costs to develop and administer programs; and

(v) incremental costs for research and development related to innovative resources;

(2) less the sum of:

(i) value received by the utility upon the resale of innovative resources or innovative
resource by-products, including any environmental credits included with the resale of
renewable gaseous fuels or value received by the utility when innovative resources are used
as vehicle fuel;

(ii) cost savings achieved through avoidance of purchases of natural gas produced from
conventional geologic sources, including but not limited to avoided commodity purchases
and avoided pipeline costs; and

(iii) other revenues received by the utility that are directly attributable to the utility's
implementation of an innovation plan.

(s) "Utility" means a public utility, as defined in section 216B.02, subdivision 4, that
provides natural gas sales or natural gas transportation services to customers in Minnesota.