SF 1567

Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 03/28/2012 10:07pm

1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1567

1.2A bill for an act

1.3relating to environment; providing for permitting efficiency; modifying
1.4environmental review requirements; modifying requirements for water supply
1.5plans; modifying terms for certain permits; appropriating money;amending
1.6Minnesota Statutes 2010, sections 41A.10, subdivision 1; 84.027, by adding
1.7a subdivision; 103G.291, subdivisions 3, 4; 115.03, by adding a subdivision;
1.8116.07, subdivision 4a, by adding a subdivision; 116D.04, by adding a
1.9subdivision; 116J.03, by adding subdivisions; 116J.035, by adding a subdivision;
1.10Minnesota Statutes 2011 Supplement, sections 84.027, subdivision 14a; 116.03,
1.11subdivision 2b; 116D.04, subdivision 2a; repealing Minnesota Statutes 2010,
1.12section 103G.291, subdivision 4.
1.13March 28, 2012
1.14The Honorable Michelle L. Fischbach
1.15President of the Senate
1.16The Honorable Kurt Zellers
1.17Speaker of the House of Representatives
1.18We, the undersigned conferees for S.F. No. 1567 report that we have agreed upon
1.19the items in dispute and recommend as follows:
1.20That the House recede from its amendments and that S.F. No. 1567 be further
1.21amended as follows:
1.22Delete everything after the enacting clause and insert:

1.23"ARTICLE 1

1.24PERMITTING

1.25    Section 1. Minnesota Statutes 2011 Supplement, section 84.027, subdivision 14a,
1.26is amended to read:
1.27    Subd. 14a. Permitting efficiency. (a) It is the goal of the state that environmental
1.28and resource management permits be issued or denied within 150 days of the submission
1.29of a substantially completed permit application. The commissioner of natural resources
1.30shall establish management systems designed to achieve the goal.
2.1(b) The commissioner shall prepare semiannual permitting efficiency reports that
2.2include statistics on meeting the goal in paragraph (a). The reports are due February 1
2.3and August 1 each year. For permit applications that have not met the goal, the report
2.4must state the reasons for not meeting the goal, steps that will be taken to complete action
2.5on the application, and the expected timeline. In stating the reasons for not meeting the
2.6goal, the commissioner shall separately identify delays caused by the responsiveness of
2.7the proposer, lack of staff, scientific or technical disagreements, or the level of public
2.8engagement. The report must specify the number of days from initial submission of the
2.9application to the day of determination that the application is complete. The report for
2.10August 1 each year must aggregate the data for the year and assess whether program
2.11or system changes are necessary to achieve the goal. The report must be posted on the
2.12department's Web site and submitted to the governor and the chairs and ranking minority
2.13members of the house of representatives and senate committees having jurisdiction over
2.14natural resources policy and finance.
2.15(c) The commissioner shall allow electronic submission of environmental review
2.16and permit documents to the department.
2.17(d) Beginning July 1, 2011, within 30 business days of application for a permit
2.18subject to paragraph (a), the commissioner of natural resources shall notify the project
2.19proposer, in writing, of whether or not the permit application is complete enough for
2.20processing. If the permit is incomplete, the commissioner must identify where whether
2.21the application is complete or incomplete. If the commissioner determines that an
2.22application is incomplete, the notice to the applicant must enumerate all deficiencies exist,
2.23citing specific provisions of the applicable rules and statutes, and advise the applicant
2.24on how they the deficiencies can be remedied. A resubmittal of the application begins
2.25a new 30-day review period. If the commissioner fails to notify the project proposer
2.26of completeness within 30 business days, the application is deemed to be substantially
2.27complete and subject to the 150-day permitting review period in paragraph (a) from the
2.28date it was submitted. This paragraph does not apply to an application for a permit that is
2.29subject to a grant or loan agreement under chapter 446A.

2.30    Sec. 2. Minnesota Statutes 2010, section 103G.291, subdivision 3, is amended to read:
2.31    Subd. 3. Water supply plans; demand reduction. (a) Every public water supplier
2.32serving more than 1,000 people must submit a water supply plan to the commissioner
2.33for approval by January 1, 1996. In accordance with guidelines developed by the
2.34commissioner, the plan must address projected demands, adequacy of the water supply
2.35system and planned improvements, existing and future water sources, natural resource
3.1impacts or limitations, emergency preparedness, water conservation, supply and demand
3.2reduction measures, and allocation priorities that are consistent with section 103G.261.
3.3Public water suppliers must update their plan and, upon notification, submit it to the
3.4commissioner for approval every ten years.
3.5    (b) The water supply plan in paragraph (a) is required for all communities in the
3.6metropolitan area, as defined in section 473.121, with a municipal water supply system
3.7and is a required element of the local comprehensive plan required under section 473.859.
3.8Water supply plans or updates submitted after December 31, 2008, must be consistent
3.9with the metropolitan area master water supply plan required under section 473.1565,
3.10subdivision 1, paragraph (a), clause (2).
3.11    (c) Public water suppliers serving more than 1,000 people must employ encourage
3.12water conservation by employing water use demand reduction measures, including a
3.13conservation rate structure, as defined in subdivision 4, paragraph (a), unless exempted
3.14under subdivision 4, paragraph (c), before requesting approval from the commissioner
3.15of health under section 144.383, paragraph (a), to construct a public water supply well
3.16or requesting an increase in the authorized volume of appropriation. Demand reduction
3.17measures must include evaluation of conservation rate structures and a public education
3.18program that may include a toilet and showerhead retrofit program. The commissioner
3.19of natural resources and the water supplier shall use a collaborative process to achieve
3.20demand reduction measures as a part of a water supply plan review process.
3.21    (d) Public water suppliers serving more than 1,000 people must submit records
3.22that indicate the number of connections and amount of use by customer category and
3.23volume of water unaccounted for with the annual report of water use required under
3.24section 103G.281, subdivision 3.
3.25    (e) For the purposes of this section, "public water supplier" means an entity
3.26that owns, manages, or operates a public water supply, as defined in section 144.382,
3.27subdivision 4 .

3.28    Sec. 3. Minnesota Statutes 2010, section 103G.291, subdivision 4, is amended to read:
3.29    Subd. 4. Conservation rate structure required Demand reduction measures.
3.30    (a) For the purposes of this section, "demand reduction measures" means measures that
3.31reduce water demand, water losses, peak water demands, and nonessential water uses.
3.32Demand reduction measures must include a conservation rate structure, or a uniform rate
3.33structure with a conservation program that achieves demand reduction. A "conservation
3.34rate structure" means a rate structure that encourages conservation and may include
3.35increasing block rates, seasonal rates, time of use rates, individualized goal rates, or excess
4.1use rates. If a conservation rate is applied to multifamily dwellings, the rate structure must
4.2consider each residential unit as an individual user in multiple-family dwellings.
4.3    (b) To encourage conservation, a public water supplier serving more than 1,000
4.4people in the metropolitan area, as defined in section 473.121, subdivision 2, shall use
4.5a conservation rate structure by January 1, 2010. All remaining public water suppliers
4.6serving more than 1,000 people shall use a conservation rate structure must implement
4.7demand reduction measures by January 1, 2013 2015.
4.8    (c) A public water supplier without the proper measuring equipment to track the
4.9amount of water used by its users, as of July 1, 2008, is exempt from this subdivision and
4.10the conservation rate structure requirement under subdivision 3, paragraph (c).

4.11    Sec. 4. Minnesota Statutes 2010, section 115.03, is amended by adding a subdivision to
4.12read:
4.13    Subd. 8b. Permit duration; state disposal system permits; feedlots. State
4.14disposal system permits that are issued without a national pollutant discharge elimination
4.15system permit to feedlots shall be issued for a term of ten years. A feedlot with a permit
4.16under this subdivision is required to be in compliance with agency rules. A facility or
4.17operation change may require a permit modification if required under agency rules.
4.18EFFECTIVE DATE.This section is effective the day following final enactment.

4.19    Sec. 5. Minnesota Statutes 2011 Supplement, section 116.03, subdivision 2b, is
4.20amended to read:
4.21    Subd. 2b. Permitting efficiency. (a) It is the goal of the state that environmental and
4.22resource management permits be issued or denied within 150 days of the submission of a
4.23substantially completed permit application. The commissioner of the Pollution Control
4.24Agency shall establish management systems designed to achieve the goal.
4.25(b) The commissioner shall prepare semiannual permitting efficiency reports that
4.26include statistics on meeting the goal in paragraph (a). The reports are due February 1
4.27and August 1 each year. For permit applications that have not met the goal, the report
4.28must state the reasons for not meeting the goal, steps that will be taken to complete action
4.29on the application, and the expected timeline. In stating the reasons for not meeting the
4.30goal, the commissioner shall separately identify delays caused by the responsiveness of
4.31the proposer, lack of staff, scientific or technical disagreements, or the level of public
4.32engagement. The report must specify the number of days from initial submission of the
4.33application to the day of determination that the application is complete. The report for
4.34August 1 each year must aggregate the data for the year and assess whether program
5.1or system changes are necessary to achieve the goal. The report must be posted on the
5.2agency's Web site and submitted to the governor and the chairs and ranking minority
5.3members of the house of representatives and senate committees having jurisdiction over
5.4environment policy and finance.
5.5(c) The commissioner shall allow electronic submission of environmental review
5.6and permit documents to the agency.
5.7(d) Beginning July 1, 2011, within 30 business days of application for a permit
5.8subject to paragraph (a), the commissioner of the Pollution Control Agency shall notify
5.9the project proposer, in writing, of whether or not the permit application is complete
5.10enough for processing. If the permit is incomplete, the commissioner must identify where
5.11whether the application is complete or incomplete. If the commissioner determines that an
5.12application is incomplete, the notice to the applicant must enumerate all deficiencies exist,
5.13citing specific provisions of the applicable rules and statutes, and advise the applicant
5.14on how they the deficiencies can be remedied. A resubmittal of the application begins
5.15a new 30-day review period. If the commissioner fails to notify the project proposer
5.16of completeness within 30 business days, the application is deemed to be substantially
5.17complete and subject to the 150-day permitting review period in paragraph (a) from the
5.18date it was submitted. This paragraph does not apply to an application for a permit that is
5.19subject to a grant or loan agreement under chapter 446A.
5.20(e) For purposes of this subdivision, "permit professional" means an individual not
5.21employed by the Pollution Control Agency who:
5.22(1) has a professional license issued by the state of Minnesota in the subject area
5.23of the permit;
5.24(2) has at least ten years of experience in the subject area of the permit; and
5.25(3) abides by the duty of candor applicable to employees of the Pollution Control
5.26Agency under agency rules and complies with all applicable requirements under chapter
5.27326.
5.28(f) Upon the agency's request, an applicant relying on a permit professional must
5.29participate in a meeting with the agency before submitting an application:
5.30(1) at least two weeks prior to the preapplication meeting, the applicant must submit
5.31at least the following:
5.32(i) project description, including, but not limited to, scope of work, primary
5.33emissions points, discharge outfalls, and water intake points;
5.34(ii) location of the project, including county, municipality, and location on the site;
5.35(iii) business schedule for project completion; and
6.1(iv) other information requested by the agency at least four weeks prior to the
6.2scheduled meeting; and
6.3    (2) during the preapplication meeting, the agency shall provide for the applicant at
6.4least the following:
6.5(i) an overview of the permit review program;
6.6(ii) a determination of which specific application or applications will be necessary
6.7to complete the project;
6.8(iii) a statement notifying the applicant if the specific permit being sought requires a
6.9mandatory public hearing or comment period;
6.10(iv) a review of the timetable established in the permit review program for the
6.11specific permit being sought; and
6.12(v) a determination of what information must be included in the application,
6.13including a description of any required modeling or testing.
6.14(g) The applicant may select a permit professional to undertake the preparation
6.15of the permit application and draft permit.
6.16(h) If a preapplication meeting was held, the agency shall, within seven business
6.17days of receipt of an application, notify the applicant and submitting permit professional
6.18that the application is complete or is denied, specifying the deficiencies of the application.
6.19(i) Upon receipt of notice that the application is complete, the permit professional
6.20shall submit to the agency a timetable for submitting a draft permit. The permit
6.21professional shall submit a draft permit on or before the date provided in the timetable.
6.22Within 60 days after the close of the public comment period, the commissioner shall notify
6.23the applicant whether the permit can be issued.
6.24(j) Nothing in this section shall be construed to modify:
6.25(1) any requirement of law that is necessary to retain federal delegation to or
6.26assumption by the state; or
6.27(2) the authority to implement a federal law or program.
6.28(k) The permit application and draft permit shall identify or include as an appendix
6.29all studies and other sources of information used to substantiate the analysis contained in
6.30the permit application and draft period. The commissioner shall request additional studies,
6.31if needed, and the project proposer shall submit all additional studies and information
6.32necessary for the commissioner to perform the commissioner's responsibility to review,
6.33modify, and determine the completeness of the application and approve the draft permit.

6.34    Sec. 6. Minnesota Statutes 2010, section 116.07, subdivision 4a, is amended to read:
7.1    Subd. 4a. Permits. (a) The Pollution Control Agency may issue, continue in
7.2effect or deny permits, under such conditions as it may prescribe for the prevention of
7.3pollution, for the emission of air contaminants, or for the installation or operation of
7.4any emission facility, air contaminant treatment facility, treatment facility, potential air
7.5contaminant storage facility, or storage facility, or any part thereof, or for the sources
7.6or emissions of noise pollution.
7.7    The Pollution Control Agency may also issue, continue in effect or deny permits,
7.8under such conditions as it may prescribe for the prevention of pollution, for the storage,
7.9collection, transportation, processing, or disposal of waste, or for the installation or
7.10operation of any system or facility, or any part thereof, related to the storage, collection,
7.11transportation, processing, or disposal of waste.
7.12    The agency may not issue a permit to a facility without analyzing and considering
7.13the cumulative levels and effects of past and current environmental pollution from all
7.14sources on the environment and residents of the geographic area within which the facility's
7.15emissions are likely to be deposited, provided that the facility is located in a community in
7.16a city of the first class in Hennepin County that meets all of the following conditions:
7.17    (1) is within a half mile of a site designated by the federal government as an EPA
7.18superfund site due to residential arsenic contamination;
7.19    (2) a majority of the population are low-income persons of color and American
7.20Indians;
7.21    (3) a disproportionate percent of the children have childhood lead poisoning, asthma,
7.22or other environmentally related health problems;
7.23    (4) is located in a city that has experienced numerous air quality alert days of
7.24dangerous air quality for sensitive populations between February 2007 and February
7.252008; and
7.26    (5) is located near the junctions of several heavily trafficked state and county
7.27highways and two one-way streets which carry both truck and auto traffic.
7.28    The Pollution Control Agency may revoke or modify any permit issued under this
7.29subdivision and section 116.081 whenever it is necessary, in the opinion of the agency, to
7.30prevent or abate pollution.
7.31    (b) The Pollution Control Agency has the authority for approval over the siting,
7.32expansion, or operation of a solid waste facility with regard to environmental issues.
7.33However, the agency's issuance of a permit does not release the permittee from any
7.34liability, penalty, or duty imposed by any applicable county ordinances. Nothing in this
7.35chapter precludes, or shall be construed to preclude, a county from enforcing land use
7.36controls, regulations, and ordinances existing at the time of the permit application and
8.1adopted pursuant to sections 366.10 to 366.181, 394.21 to 394.37, or 462.351 to 462.365,
8.2with regard to the siting, expansion, or operation of a solid waste facility.
8.3(c) Except as prohibited by federal law, a person may commence construction,
8.4reconstruction, replacement, or modification of any facility prior to the issuance of a
8.5construction permit by the agency.

8.6    Sec. 7. Minnesota Statutes 2010, section 116.07, is amended by adding a subdivision to
8.7read:
8.8    Subd. 7e. Manure digester permits. Except for areas within the metropolitan area,
8.9as defined in section 473.121, subdivision 2, or within cities of the first or second class,
8.10an air emission permit is not required for a manure digester and associated electrical
8.11generation equipment that process manure from the farm or provide for backup power for
8.12the farm.

8.13    Sec. 8. Minnesota Statutes 2010, section 116J.035, is amended by adding a subdivision
8.14to read:
8.15    Subd. 8. Minnesota Business First Stop. (a) The commissioner of employment and
8.16economic development shall, through the multiagency collaboration called "Minnesota
8.17Business First Stop," ensure the coordination, implementation, and administration of
8.18state permits, including:
8.19(1) establishing a mechanism in state government that will coordinate administrative
8.20decision-making procedures and related quasijudicial and judicial review pertaining to
8.21permits related to the state's air, land, and water resources;
8.22(2) providing coordination and understanding between federal, state, and local
8.23governmental units in the administration of the various programs relating to air, water,
8.24and land resources;
8.25(3) identifying all existing state permits and other approvals, compliance schedules,
8.26or other programs that pertain to the use of natural resources and protection of the
8.27environment; and
8.28(4) recommending legislative or administrative modifications to existing permit
8.29programs to increase their efficiency and utility.
8.30(b) A person proposing a project may apply to Minnesota Business First Stop for
8.31assistance in obtaining necessary state permits and other approvals. Upon request, the
8.32commissioner shall to the extent practicable:
8.33(1) provide a list of all federal, state, and local permits and other required approvals
8.34for the project;
9.1(2) provide a plan that will coordinate federal, state, and local administrative
9.2decision-making practices, including monitoring, analysis and reporting, public comments
9.3and hearings, and issuances of permits and approvals;
9.4(3) provide a timeline for the issuance of all federal, state, and local permits and
9.5other approvals required for the project;
9.6(4) coordinate the execution of any memorandum of understanding between the
9.7person proposing a project and any federal, state, or local agency;
9.8(5) coordinate all federal, state, or local public comment periods and hearings; and
9.9(6) provide other assistance requested to facilitate final approval and issuance of all
9.10federal, state, and local permits and other approvals required for the project.
9.11(c) Notwithstanding section 16A.1283, as necessary, the commissioner may
9.12negotiate a schedule to assess the project proposer for reasonable costs that any state
9.13agency incurs in coordinating the implementation and administration of state permits, and
9.14the proposer shall pay the assessed costs to the commissioner. Money received by the
9.15environmental permits coordinator must be credited to an account in the special revenue
9.16fund and is appropriated to the commissioner to cover the assessed costs incurred.
9.17(d) The coordination of implementation and administration of state permits is not
9.18governmental action under section 116D.04.

9.19ARTICLE 2

9.20ENVIRONMENTAL REVIEW

9.21    Section 1. Minnesota Statutes 2010, section 41A.10, subdivision 1, is amended to read:
9.22    Subdivision 1. Definitions. For the purposes of this section and section 103F.518,
9.23the terms defined in this subdivision have the meanings given them.
9.24    (a) "Cellulosic biofuel" means transportation fuel derived from cellulosic materials.
9.25    (b) "Cellulosic material" means an agricultural or wood feedstock primarily
9.26comprised of cellulose, hemicellulose, or lignin or a combination of those ingredients
9.27grown on agricultural lands or harvested on timber lands.
9.28    (c) "Agricultural land" means land used for horticultural, row, close grown, pasture,
9.29and hayland crops; growing nursery stocks; animal feedlots; farm yards; associated
9.30building sites; and public and private drainage systems and field roads located on any of
9.31that land.
9.32    (d) "Cellulosic biofuel facility" means a facility at which cellulosic biofuel is
9.33produced.
9.34    (e) "Perennial crops" means agriculturally produced plants that have a life cycle of at
9.35least three years at the location where the plants are being cultivated.
10.1    (f) "Perennial cropping system" means an agricultural production system that
10.2utilizes a perennial crop.
10.3    (g) "Native species" means a plant species which was present in a defined area of
10.4Minnesota prior to European settlement (circa 1850). A defined area may be an ecological
10.5classification province. Wild-type varieties therefore are regional or local ecotypes that
10.6have not undergone a selection process.
10.7    (h) "Diverse native prairie" means a prairie planted from a mix of local Minnesota
10.8native prairie species. A selection from all available native prairie species may be made so
10.9as to match species appropriate to local site conditions.
10.10    (i) "Commissioner" means the commissioner of agriculture.

10.11    Sec. 2. Minnesota Statutes 2011 Supplement, section 116D.04, subdivision 2a, is
10.12amended to read:
10.13    Subd. 2a. When prepared. Where there is potential for significant environmental
10.14effects resulting from any major governmental action, the action shall be preceded by a
10.15detailed environmental impact statement prepared by the responsible governmental unit.
10.16The environmental impact statement shall be an analytical rather than an encyclopedic
10.17document which describes the proposed action in detail, analyzes its significant
10.18environmental impacts, discusses appropriate alternatives to the proposed action and
10.19their impacts, and explores methods by which adverse environmental impacts of an
10.20action could be mitigated. The environmental impact statement shall also analyze those
10.21economic, employment and sociological effects that cannot be avoided should the action
10.22be implemented. To ensure its use in the decision-making process, the environmental
10.23impact statement shall be prepared as early as practical in the formulation of an action.
10.24No mandatory environmental impact statement may be required for an ethanol plant,
10.25as defined in section 41A.09, subdivision 2a, paragraph (b), that produces less than
10.26125,000,000 gallons of ethanol annually and is located outside of the seven-county
10.27metropolitan area.
10.28    (a) The board shall by rule establish categories of actions for which environmental
10.29impact statements and for which environmental assessment worksheets shall be prepared
10.30as well as categories of actions for which no environmental review is required under this
10.31section. A mandatory environmental assessment worksheet shall not be required for the
10.32expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
10.33(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
10.34biobutanol facility as defined in section 41A.105, subdivision 1a, based on the capacity
10.35of the expanded or converted facility to produce alcohol fuel, but must be required if
11.1the ethanol plant or biobutanol facility meets or exceeds thresholds of other categories
11.2of actions for which environmental assessment worksheets must be prepared. The
11.3responsible governmental unit for an ethanol plant or biobutanol facility project for which
11.4an environmental assessment worksheet is prepared shall be the state agency with the
11.5greatest responsibility for supervising or approving the project as a whole.
11.6 A mandatory environmental impact statement shall not be required for a facility
11.7or plant located outside the seven-county metropolitan area that produces less than
11.8125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, if the facility
11.9or plant is: an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
11.10(b); a biobutanol facility, as defined in section 41A.105, subdivision 1a, clause (1); or a
11.11cellulosic biofuel facility, as defined in section 41A.10, subdivision 1, paragraph (d).
11.12    (b) The responsible governmental unit shall promptly publish notice of the
11.13completion of an environmental assessment worksheet in a manner to be determined by
11.14the board and shall provide copies of the environmental assessment worksheet to the board
11.15and its member agencies. Comments on the need for an environmental impact statement
11.16may be submitted to the responsible governmental unit during a 30-day period following
11.17publication of the notice that an environmental assessment worksheet has been completed.
11.18The responsible governmental unit's decision on the need for an environmental impact
11.19statement shall be based on the environmental assessment worksheet and the comments
11.20received during the comment period, and shall be made within 15 days after the close of
11.21the comment period. The board's chair may extend the 15-day period by not more than 15
11.22additional days upon the request of the responsible governmental unit.
11.23    (c) An environmental assessment worksheet shall also be prepared for a proposed
11.24action whenever material evidence accompanying a petition by not less than 100
11.25individuals who reside or own property in the state, submitted before the proposed
11.26project has received final approval by the appropriate governmental units, demonstrates
11.27that, because of the nature or location of a proposed action, there may be potential for
11.28significant environmental effects. Petitions requesting the preparation of an environmental
11.29assessment worksheet shall be submitted to the board. The chair of the board shall
11.30determine the appropriate responsible governmental unit and forward the petition to it.
11.31A decision on the need for an environmental assessment worksheet shall be made by
11.32the responsible governmental unit within 15 days after the petition is received by the
11.33responsible governmental unit. The board's chair may extend the 15-day period by not
11.34more than 15 additional days upon request of the responsible governmental unit.
12.1    (d) Except in an environmentally sensitive location where Minnesota Rules, part
12.24410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
12.3review under this chapter and rules of the board, if:
12.4    (1) the proposed action is:
12.5    (i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
12.6    (ii) an expansion of an existing animal feedlot facility with a total cumulative
12.7capacity of less than 1,000 animal units;
12.8    (2) the application for the animal feedlot facility includes a written commitment by
12.9the proposer to design, construct, and operate the facility in full compliance with Pollution
12.10Control Agency feedlot rules; and
12.11    (3) the county board holds a public meeting for citizen input at least ten business
12.12days prior to the Pollution Control Agency or county issuing a feedlot permit for the
12.13animal feedlot facility unless another public meeting for citizen input has been held with
12.14regard to the feedlot facility to be permitted. The exemption in this paragraph is in
12.15addition to other exemptions provided under other law and rules of the board.
12.16    (e) The board may, prior to final approval of a proposed project, require preparation
12.17of an environmental assessment worksheet by a responsible governmental unit selected
12.18by the board for any action where environmental review under this section has not been
12.19specifically provided for by rule or otherwise initiated.
12.20    (f) An early and open process shall be utilized to limit the scope of the environmental
12.21impact statement to a discussion of those impacts, which, because of the nature or location
12.22of the project, have the potential for significant environmental effects. The same process
12.23shall be utilized to determine the form, content and level of detail of the statement as well
12.24as the alternatives which are appropriate for consideration in the statement. In addition,
12.25the permits which will be required for the proposed action shall be identified during the
12.26scoping process. Further, the process shall identify those permits for which information
12.27will be developed concurrently with the environmental impact statement. The board
12.28shall provide in its rules for the expeditious completion of the scoping process. The
12.29determinations reached in the process shall be incorporated into the order requiring the
12.30preparation of an environmental impact statement.
12.31    (g) The responsible governmental unit shall, to the extent practicable, avoid
12.32duplication and ensure coordination between state and federal environmental review
12.33and between environmental review and environmental permitting. Whenever practical,
12.34information needed by a governmental unit for making final decisions on permits
12.35or other actions required for a proposed project shall be developed in conjunction
12.36with the preparation of an environmental impact statement. When an environmental
13.1impact statement is prepared for a project requiring multiple permits for which two or
13.2more agencies' decision processes include either mandatory or discretionary hearings
13.3before a hearing officer prior to the agencies' decision on the permit, the agencies
13.4may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
13.5consolidated hearing process if requested by the proposer. All agencies having jurisdiction
13.6over a permit that is included in the consolidated hearing shall participate. The responsible
13.7governmental unit shall establish appropriate procedures for the consolidated hearing
13.8process, including procedures to ensure that the consolidated hearing process is consistent
13.9with the applicable requirements for each permit regarding the rights and duties of parties
13.10to the hearing, and shall utilize the earliest applicable hearing procedure to initiate the
13.11hearing. The procedures of section 116C.28, subdivision 2, apply to the consolidated
13.12hearing.
13.13    (h) An environmental impact statement shall be prepared and its adequacy
13.14determined within 280 days after notice of its preparation unless the time is extended by
13.15consent of the parties or by the governor for good cause. The responsible governmental
13.16unit shall determine the adequacy of an environmental impact statement, unless within 60
13.17days after notice is published that an environmental impact statement will be prepared,
13.18the board chooses to determine the adequacy of an environmental impact statement. If an
13.19environmental impact statement is found to be inadequate, the responsible governmental
13.20unit shall have 60 days to prepare an adequate environmental impact statement.

13.21    Sec. 3. Minnesota Statutes 2010, section 116D.04, is amended by adding a subdivision
13.22to read:
13.23    Subd. 5b. Review of environmental assessment worksheets and environmental
13.24impact statements. By December 1, 2012, and every five years thereafter, the
13.25Environmental Quality Board, Pollution Control Agency, Department of Natural
13.26Resources, and Department of Transportation, after consultation with political
13.27subdivisions, shall submit to the governor and the chairs of the house of representatives
13.28and senate committees having jurisdiction over environment and natural resources a list of
13.29mandatory environmental assessment worksheet and mandatory environmental impact
13.30statement categories for which the agency or a political subdivision is designated as the
13.31responsible government unit, and for each worksheet or statement category, a document
13.32including:
13.33(1) intended historical purposes of the category;
13.34(2) whether projects that fall within the category are also subject to local, state, or
13.35federal permits; and
14.1(3) an analysis of whether the mandatory category should be modified, eliminated,
14.2or unchanged based on its relationship to existing permits or other federal, state, or local
14.3laws or ordinances.

14.4    Sec. 4. PILOT PROGRAM FOR ALTERNATIVE FORM OF
14.5ENVIRONMENTAL REVIEW.
14.6(a) The commissioner of the Pollution Control Agency and the commissioner
14.7of natural resources may jointly conduct a pilot program for an alternative form of
14.8environmental review as specified in this section. This pilot program is in addition to the
14.9alternate forms of environmental review that are authorized under Minnesota Statutes,
14.10section 116D.04, subdivision 4a. Minnesota Rules, part 4410.3600, does not apply to the
14.11pilot program authorized in this section.
14.12(b) The commissioners may select up to three projects to be processed under the
14.13pilot program. The environmental review work for each project must commence before
14.14January 1, 2014, to remain eligible for proceeding under this program.
14.15(c) The pilot program procedures are as follows:
14.16(1) an environmental assessment worksheet is not required;
14.17(2) a scoping document must be prepared that identifies the issues to be analyzed,
14.18the alternatives to be considered, and the studies to be undertaken. The scoping document
14.19results must be published at the same time as the notice of preparation of the pilot program
14.20impact statement;
14.21(3) any person may submit written comments within 20 days of publication of
14.22the notice for preparation of the pilot program impact statement. The responsible
14.23governmental unit must consider modifying the scope of the project based on the
14.24comments;
14.25(4) the pilot program impact statement must be an analytical, rather than an
14.26encyclopedic, document that describes the proposed action in detail, analyzes the
14.27action's significant environmental impacts, discusses appropriate alternatives to the
14.28proposed action and the alternatives' impacts, and explores methods by which adverse
14.29environmental impacts of an action could be mitigated. The pilot program impact
14.30statement must also analyze those economic, employment, and sociological effects that
14.31cannot be avoided should the action be implemented;
14.32(5) if an impact analysis is needed for permitting, the impact analysis may be
14.33summarized for inclusion in the draft pilot program impact statement rather than the full
14.34modeling and analysis being contained within the draft pilot program impact statement.
15.1An impact analysis must identify the regulatory requirements, types of impact, and
15.2mitigation methods; and
15.3(6) the responsible governmental unit must follow the procedural notice requirements
15.4for a draft environmental impact statement, final environmental impact statement, and
15.5notice of determination of adequacy for an environmental impact statement.
15.6(d) A project proposed to be processed under the pilot program must meet all of the
15.7following criteria:
15.8(1) the project meets or exceeds the threshold of a project requiring a mandatory
15.9environmental impact statement, or the project proposer and the responsible governmental
15.10unit agree to prepare a pilot program impact statement;
15.11(2) if a combustion source, other than an internal combustion engine, is part of the
15.12project, natural gas is the only fuel that may supply the burners;
15.13(3) the project does not have any known projected drawdown effect on private wells;
15.14(4) Class I air modeling demonstrates that the project will not cause adverse
15.15impacts; and
15.16(5) the project is subject to Code of Federal Regulations, title 40, section 52.21, and
15.17the reviews required for a PSD (prevention of significant deterioration) permit, including
15.18control technology, ambient air, and Class I area impact analysis.
15.19(e) A project may not be processed under the pilot program if the project:
15.20(1) requires a federal environmental impact statement;
15.21(2) is for mining metallic minerals by open pit or underground methods or is a new
15.22facility for processing metallic minerals mined by open pit or underground methods;
15.23(3) is for mining nonferrous metallic minerals or is a new facility for processing
15.24nonferrous metallic minerals;
15.25(4) combusts solid waste or hazardous waste;
15.26(5) is located in a karst area; or
15.27(6) would result in a direct discharge of process water to surface water.
15.28(f) For the selected projects, the responsible governmental unit must prepare the
15.29pilot program impact statement according to this section. Notwithstanding Minnesota
15.30Statutes, section 116D.04, subdivision 2a, paragraph (i), the proposers of the specific
15.31project selected for the pilot program may not prepare or submit a preliminary draft pilot
15.32program impact statement.
15.33(g) Minnesota Statutes, sections 116D.04, subdivisions 2b and 10, and 116D.045,
15.34apply to the pilot program under this section.
16.1(h) By January 15, 2016, the commissioners shall report to the Environmental
16.2Quality Board on the outcomes of the pilot program and include any recommendations for
16.3statute or rule changes.
16.4EFFECTIVE DATE.This section is effective the day following final enactment."
16.5Delete the title and insert:

16.6"A bill for an act

16.7relating to environment; providing for permitting efficiency; modifying
16.8environmental review requirements; modifying requirements for water
16.9supply plans; modifying terms for certain permits; appropriating money;
16.10amending Minnesota Statutes 2010, sections 41A.10, subdivision 1; 103G.291,
16.11subdivisions 3, 4; 115.03, by adding a subdivision; 116.07, subdivision 4a, by
16.12adding a subdivision; 116D.04, by adding a subdivision; 116J.035, by adding a
16.13subdivision; Minnesota Statutes 2011 Supplement, sections 84.027, subdivision
16.1414a; 116.03, subdivision 2b; 116D.04, subdivision 2a."

17.1	We request the adoption of this report and repassage of the bill.
17.2	Senate Conferees:
17.3	.....		.....
17.4	Bill G. Ingebrigtsen		Paul Gazelka
17.5	.....		.....
17.6	John J. Carlson		John C. Pederson
17.7	.....
17.8	LeRoy A. Stumpf
17.9	House Conferees:
17.10	.....		.....
17.11	Dan Fabian		David Hancock
17.12	.....		.....
17.13	Denny McNamara		Paul Torkelson
17.14	.....
17.15	David Dill