SF 1567

1st Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 03/26/2012 11:54am

1.1A bill for an act

1.2relating to environment; providing for permitting efficiency; modifying
1.3environmental review requirements; appropriating money;amending Minnesota
1.4Statutes 2010, sections 14.05, by adding a subdivision; 41A.10, subdivision
1.51; 84.027, by adding a subdivision; 115.03, by adding a subdivision; 116.07,
1.6subdivision 4a; 116J.035, by adding a subdivision; Minnesota Statutes 2011
1.7Supplement, sections 84.027, subdivision 14a; 116.03, subdivision 2b; 116D.04,
1.8subdivision 2a.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10ARTICLE 1

1.11PERMITTING

1.12    Section 1. Minnesota Statutes 2011 Supplement, section 84.027, subdivision 14a,
1.13is amended to read:
1.14    Subd. 14a. Permitting efficiency. (a) It is the goal of the state that environmental
1.15and resource management permits be issued or denied within 150 days of the submission
1.16of a substantially completed permit application. The commissioner of natural resources
1.17shall establish management systems designed to achieve the goal.
1.18(b) The commissioner shall prepare semiannual permitting efficiency reports that
1.19include statistics on meeting the goal in paragraph (a). The reports are due February 1
1.20and August 1 each year. For permit applications that have not met the goal, the report
1.21must state the reasons for not meeting the goal, steps that will be taken to complete action
1.22on the application, and the expected timeline. In stating the reasons for not meeting the
1.23goal, the commissioner shall separately identify delays caused by the responsiveness of
1.24the proposer, lack of staff, scientific or technical disagreements, or the level of public
1.25engagement. The report must specify the number of days from initial submission of the
2.1application to the day of determination that the application is complete. The report for
2.2August 1 each year must aggregate the data for the year and assess whether program
2.3or system changes are necessary to achieve the goal. The report must be posted on the
2.4department's Web site and submitted to the governor and the chairs and ranking minority
2.5members of the house of representatives and senate committees having jurisdiction over
2.6natural resources policy and finance.
2.7(c) The commissioner shall allow electronic submission of environmental review
2.8and permit documents to the department.
2.9(d) Beginning July 1, 2011, within 30 business days of application for a permit
2.10subject to paragraph (a), the commissioner of natural resources shall notify the project
2.11proposer, in writing, of whether or not the permit application is complete enough for
2.12processing. If the permit is incomplete, the commissioner must identify where whether
2.13the application is complete or incomplete. If the commissioner determines that an
2.14application is incomplete, the notice to the applicant must enumerate all deficiencies exist,
2.15citing specific provisions of the applicable rules and statutes, and advise the applicant
2.16on how they the deficiencies can be remedied. A resubmittal of the application begins
2.17a new 30-day review period. If the commissioner fails to notify the project proposer
2.18of completeness within 30 business days, the application is deemed to be substantially
2.19complete and subject to the 150-day permitting review period in paragraph (a) from the
2.20date it was submitted. This paragraph does not apply to an application for a permit that is
2.21subject to a grant or loan agreement under chapter 446A.

2.22    Sec. 2. Minnesota Statutes 2010, section 84.027, is amended by adding a subdivision
2.23to read:
2.24    Subd. 14b. Irrevocability or suspensions of permits. If, by July 1 of an
2.25odd-numbered year, a biennial appropriation law has not been enacted to fund air,
2.26water, and land programs at the department, existing permits shall not be terminated or
2.27suspended, provided the terms and conditions of the permit and local, state, and federal
2.28laws and rules are met, regardless of the state's capability to receive, review, or process
2.29fees, reports, or other filings.

2.30    Sec. 3. Minnesota Statutes 2010, section 115.03, is amended by adding a subdivision to
2.31read:
2.32    Subd. 8b. Permit duration; state disposal system permits; animal feedlots. State
2.33disposal system permits that are issued without a national pollutant discharge elimination
3.1system permit to animal feedlots shall be issued for a term of ten years and are valid unless
3.2the animal feedlot is not in compliance with the terms of the permit.
3.3EFFECTIVE DATE.This section is effective the day following final enactment.

3.4    Sec. 4. Minnesota Statutes 2011 Supplement, section 116.03, subdivision 2b, is
3.5amended to read:
3.6    Subd. 2b. Permitting efficiency. (a) It is the goal of the state that environmental and
3.7resource management permits be issued or denied within 150 days of the submission of a
3.8substantially completed permit application. The commissioner of the Pollution Control
3.9Agency shall establish management systems designed to achieve the goal.
3.10(b) The commissioner shall prepare semiannual permitting efficiency reports that
3.11include statistics on meeting the goal in paragraph (a). The reports are due February 1
3.12and August 1 each year. For permit applications that have not met the goal, the report
3.13must state the reasons for not meeting the goal, steps that will be taken to complete action
3.14on the application, and the expected timeline. In stating the reasons for not meeting the
3.15goal, the commissioner shall separately identify delays caused by the responsiveness of
3.16the proposer, lack of staff, scientific or technical disagreements, or the level of public
3.17engagement. The report must specify the number of days from initial submission of the
3.18application to the day of determination that the application is complete. The report for
3.19August 1 each year must aggregate the data for the year and assess whether program
3.20or system changes are necessary to achieve the goal. The report must be posted on the
3.21agency's Web site and submitted to the governor and the chairs and ranking minority
3.22members of the house of representatives and senate committees having jurisdiction over
3.23environment policy and finance.
3.24(c) The commissioner shall allow electronic submission of environmental review
3.25and permit documents to the agency.
3.26(d) Beginning July 1, 2011, within 30 business days of application for a permit
3.27subject to paragraph (a), the commissioner of the Pollution Control Agency shall notify
3.28the project proposer, in writing, of whether or not the permit application is complete
3.29enough for processing. If the permit is incomplete, the commissioner must identify where
3.30whether the application is complete or incomplete. If the commissioner determines that an
3.31application is incomplete, the notice to the applicant must enumerate all deficiencies exist,
3.32citing specific provisions of the applicable rules and statutes, and advise the applicant
3.33on how they the deficiencies can be remedied. A resubmittal of the application begins
3.34a new 30-day review period. If the commissioner fails to notify the project proposer
3.35of completeness within 30 business days, the application is deemed to be substantially
4.1complete and subject to the 150-day permitting review period in paragraph (a) from the
4.2date it was submitted. This paragraph does not apply to an application for a permit that is
4.3subject to a grant or loan agreement under chapter 446A.
4.4(e) For purposes of this subdivision, "permit professional" means an individual not
4.5employed by the Pollution Control Agency who:
4.6(1) has a professional engineer license issued by the state of Minnesota;
4.7(2) has at least ten years of experience in the subject area of the permit; and
4.8(3) abides by the duty of candor applicable to employees of the Pollution Control
4.9Agency under agency rules and complies with all applicable requirements for engineers
4.10under chapter 326.
4.11(f) Upon the agency's request, an applicant relying on a permit professional must
4.12participate in a meeting with the agency before submitting an application:
4.13(1) during the preapplication meeting, the applicant must submit at least the
4.14following:
4.15(i) project description, including, but not limited to, scope of work, primary
4.16emissions points, discharge outfalls, and water intake points;
4.17(ii) location of the project, including county, municipality, and location on the site;
4.18(iii) business schedule for project completion; and
4.19(iv) other information requested by the agency at least two weeks prior to the
4.20scheduled meeting; and
4.21    (2) during the preapplication meeting, the agency shall provide for the applicant at
4.22least the following:
4.23(i) an overview of the permit review program;
4.24(ii) a determination of which specific application or applications will be necessary
4.25to complete the project;
4.26(iii) a statement notifying the applicant if the specific permit being sought requires a
4.27mandatory public hearing or comment period;
4.28(iv) a review of the timetable established in the permit review program for the
4.29specific permit being sought; and
4.30(v) a determination of what information must be included in the application,
4.31including a description of any required modeling or testing.
4.32(g) The applicant may select a permit professional to undertake the preparation
4.33of the permit application and draft permit.
4.34(h) The agency shall, within five business days of receipt of an application, notify the
4.35applicant and submitting permit professional that the application is complete or is denied,
4.36specifying the deficiencies of the application.
5.1(i) Upon receipt of notice that the application is complete, the permit professional
5.2shall submit to the agency a timetable for submitting a draft permit. The permit
5.3professional shall submit a draft permit on or before the date provided in the timetable.
5.4Within 60 days after the close of the public comment period and public hearing, the
5.5commissioner shall notify the applicant whether the permit is approved.
5.6(j) Nothing in this section shall be construed to modify:
5.7(1) any requirement of law that is necessary to retain federal delegation to or
5.8assumption by the state; or
5.9(2) the authority to implement a federal law or program.
5.10(k) The permit application and draft permit shall identify or include as an appendix
5.11all studies and other sources of information used to substantiate the analysis contained in
5.12the permit application and draft period. The commissioner shall request additional studies,
5.13if needed, and the project proposer shall submit all additional studies and information
5.14necessary for the commissioner to perform the commissioner's responsibility to review,
5.15modify, and determine the completeness of the application and approve the draft permit.
5.16(l) If, by July 1 of an odd-numbered year, a biennial appropriation law has not been
5.17enacted to fund air, water, and land programs at the agency, existing permits shall not be
5.18terminated or suspended, provided the terms and conditions of the permit and local, state,
5.19and federal laws and rules are met, regardless of the state's capability to receive, review,
5.20or process fees, reports, or other filings.

5.21    Sec. 5. Minnesota Statutes 2010, section 116.07, subdivision 4a, is amended to read:
5.22    Subd. 4a. Permits. (a) The Pollution Control Agency may issue, continue in
5.23effect or deny permits, under such conditions as it may prescribe for the prevention of
5.24pollution, for the emission of air contaminants, or for the installation or operation of
5.25any emission facility, air contaminant treatment facility, treatment facility, potential air
5.26contaminant storage facility, or storage facility, or any part thereof, or for the sources
5.27or emissions of noise pollution.
5.28    The Pollution Control Agency may also issue, continue in effect or deny permits,
5.29under such conditions as it may prescribe for the prevention of pollution, for the storage,
5.30collection, transportation, processing, or disposal of waste, or for the installation or
5.31operation of any system or facility, or any part thereof, related to the storage, collection,
5.32transportation, processing, or disposal of waste.
5.33    The agency may not issue a permit to a facility without analyzing and considering
5.34the cumulative levels and effects of past and current environmental pollution from all
5.35sources on the environment and residents of the geographic area within which the facility's
6.1emissions are likely to be deposited, provided that the facility is located in a community in
6.2a city of the first class in Hennepin County that meets all of the following conditions:
6.3    (1) is within a half mile of a site designated by the federal government as an EPA
6.4superfund site due to residential arsenic contamination;
6.5    (2) a majority of the population are low-income persons of color and American
6.6Indians;
6.7    (3) a disproportionate percent of the children have childhood lead poisoning, asthma,
6.8or other environmentally related health problems;
6.9    (4) is located in a city that has experienced numerous air quality alert days of
6.10dangerous air quality for sensitive populations between February 2007 and February
6.112008; and
6.12    (5) is located near the junctions of several heavily trafficked state and county
6.13highways and two one-way streets which carry both truck and auto traffic.
6.14    The Pollution Control Agency may revoke or modify any permit issued under this
6.15subdivision and section 116.081 whenever it is necessary, in the opinion of the agency, to
6.16prevent or abate pollution.
6.17    (b) The Pollution Control Agency has the authority for approval over the siting,
6.18expansion, or operation of a solid waste facility with regard to environmental issues.
6.19However, the agency's issuance of a permit does not release the permittee from any
6.20liability, penalty, or duty imposed by any applicable county ordinances. Nothing in this
6.21chapter precludes, or shall be construed to preclude, a county from enforcing land use
6.22controls, regulations, and ordinances existing at the time of the permit application and
6.23adopted pursuant to sections 366.10 to 366.181, 394.21 to 394.37, or 462.351 to 462.365,
6.24with regard to the siting, expansion, or operation of a solid waste facility.
6.25(c) Except as prohibited by federal law, a person may commence construction,
6.26reconstruction, replacement, or modification of any facility prior to the issuance of a
6.27construction permit by the agency.

6.28    Sec. 6. Minnesota Statutes 2010, section 116J.035, is amended by adding a subdivision
6.29to read:
6.30    Subd. 8. Environmental permits coordinator. (a) The commissioner of
6.31employment and economic development shall, through the multiagency collaboration
6.32called "Minnesota Business First Stop" ensure the coordination, implementation, and
6.33administration of state and federal permits, including:
7.1(1) establishing a mechanism in state government that will coordinate administrative
7.2decision-making procedures and related quasijudicial and judicial review pertaining to
7.3permits related to the state's air, land, and water resources;
7.4(2) providing coordination and understanding between federal, state, and local
7.5governmental units in the administration of the various programs relating to air, water,
7.6and land resources;
7.7(3) identifying all existing federal, state, and local permits and other approvals;
7.8compliance schedules; or other programs that pertain to the use of natural resources and
7.9protection of the environment; and
7.10(4) recommending legislative or administrative modifications to existing permit
7.11programs to increase their efficiency and utility.
7.12(b) A person proposing a project may apply to the environmental permits coordinator
7.13for assistance in obtaining necessary state permits and other approvals. Upon request, the
7.14environmental permits coordinator shall:
7.15(1) provide a list of all federal, state, and local permits and other required approvals
7.16for the project;
7.17(2) provide a plan that will coordinate federal, state, and local administrative
7.18decision-making practices, including monitoring, analysis and reporting, public comments
7.19and hearings, and issuances of permits and approvals;
7.20(3) provide a timeline for the issuance of all federal, state, and local permits and
7.21other approvals required for the project;
7.22(4) coordinate the execution of any memorandum of understanding between the
7.23person proposing a project and any federal, state, or local agency;
7.24(5) coordinate all federal, state, or local public comment periods and hearings; and
7.25(6) provide other assistance requested to facilitate final approval and issuance of all
7.26federal, state, and local permits and other approvals required for the project.
7.27(c) As necessary, the environmental permits coordinator shall negotiate a schedule
7.28to assess the project proposer for reasonable costs that any state agency incurs in
7.29coordinating the implementation and administration of state permits, and the proposer
7.30shall pay the assessed costs to the environmental permits coordinator. Money received
7.31by the environmental permits coordinator must be credited to an account in the special
7.32revenue fund and is appropriated to the commissioner to cover the assessed costs incurred.
7.33(d) The coordination of implementation and administration of state permits is not
7.34governmental action under section 116D.04.
7.35(e) For the purposes of this subdivision:
7.36(1) "agency" means:
8.1(i) a state department, commission, board, or other agency of the state, however
8.2titled; or
8.3(ii) a local governmental unit or instrumentality, only when that unit or
8.4instrumentality is acting within existing legal authority to grant or deny a permit that
8.5otherwise would be granted or denied by a state agency;
8.6(2) "local governmental unit" means a county, city, town, or special district with
8.7legal authority to issue a permit;
8.8(3) "permit" means a permit, certificate, certification, approval, compliance schedule,
8.9or other similar document pertaining to a regulatory or management program related to
8.10the protection, conservation, or use of or interference with the natural resources of land,
8.11air, or water that must be obtained from a state agency before constructing or operating a
8.12project in the state;
8.13(4) "person" means an individual, an association or partnership, or a cooperative,
8.14municipal, public, or private corporation, including but not limited to a state agency
8.15and a county; and
8.16(5) "project" means a new activity or an expansion of or addition to an existing
8.17activity, which is fixed in location and for which permits are required from an agency
8.18prior to construction or operation, including but not limited to industrial and commercial
8.19operations and developments.

8.20ARTICLE 2

8.21ENVIRONMENTAL REVIEW

8.22    Section 1. Minnesota Statutes 2010, section 14.05, is amended by adding a subdivision
8.23to read:
8.24    Subd. 5a. Review of environmental assessment worksheets and environmental
8.25impact statements. By December 1, 2012, and every five years thereafter, the
8.26Environmental Quality Board, Pollution Control Agency, Department of Natural
8.27Resources, and Department of Transportation, after consultation with political
8.28subdivisions, shall submit to the governor and the chairs of the house of representatives
8.29and senate committees having jurisdiction over environment and natural resources a list
8.30of mandatory environmental assessment worksheet or mandatory environmental impact
8.31statement categories for which the agency or a political subdivision is designated as the
8.32responsible government unit, and for each worksheet or statement category, a document
8.33including:
8.34(1) intended outcomes of each worksheet or statement within each category;
8.35(2) the cost to state and local government and the private sector; and
9.1(3) an explanation of what information provided on the mandatory worksheet or
9.2statement within each category is not included in or provided for in an existing permit or
9.3other federal, state, or local law.

9.4    Sec. 2. Minnesota Statutes 2010, section 41A.10, subdivision 1, is amended to read:
9.5    Subdivision 1. Definitions. For the purposes of this section and section 103F.518,
9.6the terms defined in this subdivision have the meanings given them.
9.7    (a) "Cellulosic biofuel" means transportation fuel derived from cellulosic materials.
9.8    (b) "Cellulosic material" means an agricultural or wood feedstock primarily
9.9comprised of cellulose, hemicellulose, or lignin or a combination of those ingredients
9.10grown on agricultural lands or harvested timber lands.
9.11    (c) "Agricultural land" means land used for horticultural, row, close grown, pasture,
9.12and hayland crops; growing nursery stocks; animal feedlots; farm yards; associated
9.13building sites; and public and private drainage systems and field roads located on any of
9.14that land.
9.15    (d) "Cellulosic biofuel facility" means a facility at which cellulosic biofuel is
9.16produced.
9.17    (e) "Perennial crops" means agriculturally produced plants that have a life cycle of at
9.18least three years at the location where the plants are being cultivated.
9.19    (f) "Perennial cropping system" means an agricultural production system that
9.20utilizes a perennial crop.
9.21    (g) "Native species" means a plant species which was present in a defined area of
9.22Minnesota prior to European settlement (circa 1850). A defined area may be an ecological
9.23classification province. Wild-type varieties therefore are regional or local ecotypes that
9.24have not undergone a selection process.
9.25    (h) "Diverse native prairie" means a prairie planted from a mix of local Minnesota
9.26native prairie species. A selection from all available native prairie species may be made so
9.27as to match species appropriate to local site conditions.
9.28    (i) "Commissioner" means the commissioner of agriculture.

9.29    Sec. 3. Minnesota Statutes 2011 Supplement, section 116D.04, subdivision 2a, is
9.30amended to read:
9.31    Subd. 2a. When prepared. Where there is potential for significant environmental
9.32effects resulting from any major governmental action, the action shall be preceded by a
9.33detailed environmental impact statement prepared by the responsible governmental unit.
9.34The environmental impact statement shall be an analytical rather than an encyclopedic
10.1document which describes the proposed action in detail, analyzes its significant
10.2environmental impacts, discusses appropriate alternatives to the proposed action and
10.3their impacts, and explores methods by which adverse environmental impacts of an
10.4action could be mitigated. The environmental impact statement shall also analyze those
10.5economic, employment and sociological effects that cannot be avoided should the action
10.6be implemented. To ensure its use in the decision-making process, the environmental
10.7impact statement shall be prepared as early as practical in the formulation of an action.
10.8No mandatory environmental impact statement may be required for an ethanol plant,
10.9as defined in section 41A.09, subdivision 2a, paragraph (b), that produces less than
10.10125,000,000 gallons of ethanol annually and is located outside of the seven-county
10.11metropolitan area.
10.12    (a) The board shall by rule establish categories of actions for which environmental
10.13impact statements and for which environmental assessment worksheets shall be prepared
10.14as well as categories of actions for which no environmental review is required under this
10.15section. A mandatory environmental assessment worksheet shall not be required for the
10.16expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
10.17(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
10.18biobutanol facility as defined in section 41A.105, subdivision 1a, based on the capacity
10.19of the expanded or converted facility to produce alcohol fuel, but must be required if
10.20the ethanol plant meets or exceeds thresholds of other categories of actions for which
10.21environmental assessment worksheets must be prepared. The responsible governmental
10.22unit for an ethanol plant project for which an environmental assessment worksheet is
10.23prepared shall be the state agency with the greatest responsibility for supervising or
10.24approving the project as a whole. A mandatory environmental impact statement shall
10.25not be required for a facility or plant located outside the seven-county metropolitan
10.26area that produces less than 125,000,000 gallons of ethanol, biobutanol, or cellulosic
10.27biofuel annually, if the facility or plant is: an ethanol plant, as defined in section 41A.09,
10.28subdivision 2a, paragraph (b); a biobutanol facility, as defined in section 41A.105,
10.29subdivision 1a, clause (1); or a cellulosic biofuel facility as defined in section 41A.10,
10.30subdivision 1, paragraph (d).
10.31    (b) The responsible governmental unit shall promptly publish notice of the
10.32completion of an environmental assessment worksheet in a manner to be determined by
10.33the board and shall provide copies of the environmental assessment worksheet to the board
10.34and its member agencies. Comments on the need for an environmental impact statement
10.35may be submitted to the responsible governmental unit during a 30-day period following
10.36publication of the notice that an environmental assessment worksheet has been completed.
11.1The responsible governmental unit's decision on the need for an environmental impact
11.2statement shall be based on the environmental assessment worksheet and the comments
11.3received during the comment period, and shall be made within 15 days after the close of
11.4the comment period. The board's chair may extend the 15-day period by not more than 15
11.5additional days upon the request of the responsible governmental unit.
11.6    (c) An environmental assessment worksheet shall also be prepared for a proposed
11.7action whenever material evidence accompanying a petition by not less than 100
11.8individuals who reside or own property in the state, submitted before the proposed
11.9project has received final approval by the appropriate governmental units, demonstrates
11.10that, because of the nature or location of a proposed action, there may be potential for
11.11significant environmental effects. Petitions requesting the preparation of an environmental
11.12assessment worksheet shall be submitted to the board. The chair of the board shall
11.13determine the appropriate responsible governmental unit and forward the petition to it.
11.14A decision on the need for an environmental assessment worksheet shall be made by
11.15the responsible governmental unit within 15 days after the petition is received by the
11.16responsible governmental unit. The board's chair may extend the 15-day period by not
11.17more than 15 additional days upon request of the responsible governmental unit.
11.18    (d) Except in an environmentally sensitive location where Minnesota Rules, part
11.194410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
11.20review under this chapter and rules of the board, if:
11.21    (1) the proposed action is:
11.22    (i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
11.23    (ii) an expansion of an existing animal feedlot facility with a total cumulative
11.24capacity of less than 1,000 animal units;
11.25    (2) the application for the animal feedlot facility includes a written commitment by
11.26the proposer to design, construct, and operate the facility in full compliance with Pollution
11.27Control Agency feedlot rules; and
11.28    (3) the county board holds a public meeting for citizen input at least ten business
11.29days prior to the Pollution Control Agency or county issuing a feedlot permit for the
11.30animal feedlot facility unless another public meeting for citizen input has been held with
11.31regard to the feedlot facility to be permitted. The exemption in this paragraph is in
11.32addition to other exemptions provided under other law and rules of the board.
11.33    (e) The board may, prior to final approval of a proposed project, require preparation
11.34of an environmental assessment worksheet by a responsible governmental unit selected
11.35by the board for any action where environmental review under this section has not been
11.36specifically provided for by rule or otherwise initiated.
12.1    (f) An early and open process shall be utilized to limit the scope of the environmental
12.2impact statement to a discussion of those impacts, which, because of the nature or location
12.3of the project, have the potential for significant environmental effects. The same process
12.4shall be utilized to determine the form, content and level of detail of the statement as well
12.5as the alternatives which are appropriate for consideration in the statement. In addition,
12.6the permits which will be required for the proposed action shall be identified during the
12.7scoping process. Further, the process shall identify those permits for which information
12.8will be developed concurrently with the environmental impact statement. The board
12.9shall provide in its rules for the expeditious completion of the scoping process. The
12.10determinations reached in the process shall be incorporated into the order requiring the
12.11preparation of an environmental impact statement.
12.12    (g) The responsible governmental unit shall, to the extent practicable, avoid
12.13duplication and ensure coordination between state and federal environmental review
12.14and between environmental review and environmental permitting. Whenever practical,
12.15information needed by a governmental unit for making final decisions on permits or
12.16other actions required for a proposed project shall be developed in conjunction with the
12.17preparation of an environmental impact statement.
12.18    (h) An environmental impact statement shall be prepared and its adequacy
12.19determined within 280 days after notice of its preparation unless the time is extended by
12.20consent of the parties or by the governor for good cause. The responsible governmental
12.21unit shall determine the adequacy of an environmental impact statement, unless within 60
12.22days after notice is published that an environmental impact statement will be prepared,
12.23the board chooses to determine the adequacy of an environmental impact statement. If an
12.24environmental impact statement is found to be inadequate, the responsible governmental
12.25unit shall have 60 days to prepare an adequate environmental impact statement.
12.26    (i) The proposer of a specific action may include in the information submitted to the
12.27responsible governmental unit a preliminary draft environmental impact statement under
12.28this section on that action for review, modification, and determination of completeness and
12.29adequacy by the responsible governmental unit. A preliminary draft environmental impact
12.30statement prepared by the project proposer and submitted to the responsible governmental
12.31unit shall identify or include as an appendix all studies and other sources of information
12.32used to substantiate the analysis contained in the preliminary draft environmental impact
12.33statement. The responsible governmental unit shall require additional studies, if needed,
12.34and obtain from the project proposer all additional studies and information necessary for
12.35the responsible governmental unit to perform its responsibility to review, modify, and
12.36determine the completeness and adequacy of the environmental impact statement.

13.1    Sec. 4. PILOT PROGRAM FOR ALTERNATIVE FORM OF
13.2ENVIRONMENTAL REVIEW.
13.3(a) The commissioner of the Pollution Control Agency and the commissioner
13.4of natural resources may jointly conduct a pilot program for an alternative form of
13.5environmental review as specified in this section. This pilot program is in addition to the
13.6alternate forms of environmental review that are authorized under Minnesota Statutes,
13.7section 116D.04, subdivision 4a. Minnesota Rules, part 4410.3600, does not apply to the
13.8pilot program authorized in this section.
13.9(b) The commissioners may select up to three projects to be processed under the
13.10pilot program. The environmental review work for each project must commence before
13.11January 1, 2014, to remain eligible for proceeding under this program.
13.12(c) The pilot program procedures are as follows:
13.13(1) an environmental assessment worksheet is not required;
13.14(2) a scoping document must be prepared that identifies the issues to be analyzed,
13.15the alternatives to be considered, and the studies to be undertaken. The scoping
13.16document results must be published at the same time as the notice of preparation of the
13.17environmental impact statement;
13.18(3) any person may submit written comments within 20 days of publication of the
13.19notice for preparation of the environmental impact statement. The responsible government
13.20unit must consider modifying the scope of the project based on the comments;
13.21(4) the environmental impact statement must be an analytical, rather than an
13.22encyclopedic, document that describes the proposed action in detail, analyzes the
13.23action's significant environmental impacts, discusses appropriate alternatives to the
13.24proposed action and the alternatives' impacts, and explores methods by which adverse
13.25environmental impacts of an action could be mitigated. The environmental impact
13.26statement must also analyze those economic, employment, and sociological effects that
13.27cannot be avoided should the action be implemented;
13.28(5) if an impact analysis is needed for permitting, the impact analysis may be
13.29summarized for inclusion in the draft environmental impact statement rather than the full
13.30modeling and analysis being contained within the draft environmental impact statement.
13.31An impact analysis must identify the regulatory requirements, types of impact, and
13.32mitigation methods; and
13.33(6) the responsible government unit must follow the procedural notice requirements
13.34for a draft environmental impact statement, final environmental impact statement, and
13.35notice of determination of adequacy for an environmental impact statement.
14.1(d) A project proposed to be processed under the pilot program must meet all of the
14.2following criteria:
14.3(1) the project meets or exceeds the threshold of a project requiring a mandatory
14.4environmental impact statement;
14.5(2) if a combustion source is part of the project, natural gas is the only fuel;
14.6(3) the project does not have any known projected drawdown effect on private wells;
14.7(4) Class I air modeling demonstrates that the project will not cause adverse
14.8impacts; and
14.9(5) the project is subject to Code of Federal Regulations, title 40, section 52.21, and
14.10the reviews required for a PSD (prevention of significant deterioration) permit, including
14.11control technology, ambient air, and Class I area impact analysis.
14.12(e) A project may not be processed under the pilot program if the project:
14.13(1) requires a federal environmental impact statement;
14.14(2) is for mining metallic minerals by open pit or underground methods or is a new
14.15facility for processing metallic minerals mined by open pit or underground methods;
14.16(3) is for mining nonferrous metallic minerals or is a new facility for processing
14.17nonferrous metallic minerals;
14.18(4) is located in a karst area; or
14.19(5) would result in a direct discharge of process water to surface water.
14.20(f) For the selected projects, the responsible government unit must prepare the
14.21environmental impact statement according to this section. Notwithstanding Minnesota
14.22Statutes, section 116D.04, subdivision 2a, paragraph (i), the proposers of the specific
14.23project selected for the pilot program may not prepare or submit a preliminary draft
14.24environmental impact statement.
14.25(g) The proposers are subject to the assessment of reasonable costs as provided
14.26in Minnesota Statutes, section 116D.045.
14.27(h) By January 15, 2016, the commissioners shall report to the Environmental
14.28Quality Board on the outcomes of the pilot program and include any recommendations for
14.29statute or rule changes.
14.30EFFECTIVE DATE.This section is effective the day following final enactment.