1.1                          A bill for an act 
  1.2             relating to agriculture; regulating feedlots; removing 
  1.3             an exemption from permitting for small facilities; 
  1.4             exempting livestock production facilities from the 
  1.5             ambient hydrogen sulfide standards under certain 
  1.6             conditions; specifying requirements for administrative 
  1.7             penalty orders issued to feedlot operators; amending 
  1.8             Minnesota Statutes 1998, sections 116.07, subdivision 
  1.9             7, and by adding a subdivision; 116.0713; and 116.072, 
  1.10            by adding a subdivision.  
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 116.07, 
  1.13  subdivision 7, is amended to read: 
  1.14     Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
  1.15  LOT PERMITS.] Any Minnesota county board may, by resolution, 
  1.16  with approval of the pollution control agency, assume 
  1.17  responsibility for processing applications for permits required 
  1.18  by the pollution control agency under this section for livestock 
  1.19  feedlots, poultry lots or other animal lots.  The responsibility 
  1.20  for permit application processing, if assumed by a county, may 
  1.21  be delegated by the county board to any appropriate county 
  1.22  officer or employee.  
  1.23     (a) For the purposes of this subdivision, the term 
  1.24  "processing" includes: 
  1.25     (1) the distribution to applicants of forms provided by the 
  1.26  pollution control agency; 
  1.27     (2) the receipt and examination of completed application 
  1.28  forms, and the certification, in writing, to the pollution 
  2.1   control agency either that the animal lot facility for which a 
  2.2   permit is sought by an applicant will comply with applicable 
  2.3   rules and standards, or, if the facility will not comply, the 
  2.4   respects in which a variance would be required for the issuance 
  2.5   of a permit; and 
  2.6      (3) rendering to applicants, upon request, assistance 
  2.7   necessary for the proper completion of an application. 
  2.8      (b) For the purposes of this subdivision, the term 
  2.9   "processing" may include, at the option of the county board, 
  2.10  issuing, denying, modifying, imposing conditions upon, or 
  2.11  revoking permits pursuant to the provisions of this section or 
  2.12  rules promulgated pursuant to it, subject to review, suspension, 
  2.13  and reversal by the pollution control agency.  The pollution 
  2.14  control agency shall, after written notification, have 15 days 
  2.15  to review, suspend, modify, or reverse the issuance of the 
  2.16  permit.  After this period, the action of the county board is 
  2.17  final, subject to appeal as provided in chapter 14. 
  2.18     (c) For the purpose of administration of rules adopted 
  2.19  under this subdivision, the commissioner and the agency may 
  2.20  provide exceptions for cases where the owner of a feedlot has 
  2.21  specific written plans to close the feedlot within five years.  
  2.22  These exceptions include waiving requirements for major capital 
  2.23  improvements. 
  2.24     (d) For purposes of this subdivision, a discharge caused by 
  2.25  an extraordinary natural event such as a precipitation event of 
  2.26  greater magnitude than the 25-year, 24-hour event, tornado, or 
  2.27  flood in excess of the 100-year flood is not a "direct discharge 
  2.28  of pollutants." 
  2.29     (e) In adopting and enforcing rules under this subdivision, 
  2.30  the commissioner shall cooperate closely with other governmental 
  2.31  agencies. 
  2.32     (f) The pollution control agency shall work with the 
  2.33  Minnesota extension service, the department of agriculture, the 
  2.34  board of water and soil resources, producer groups, local units 
  2.35  of government, as well as with appropriate federal agencies such 
  2.36  as the Natural Resources Conservation Service and the Farm 
  3.1   Service Agency, to notify and educate producers of rules under 
  3.2   this subdivision at the time the rules are being developed and 
  3.3   adopted and at least every two years thereafter. 
  3.4      (g) The pollution control agency shall adopt rules 
  3.5   governing the issuance and denial of permits for livestock 
  3.6   feedlots, poultry lots or other animal lots pursuant to this 
  3.7   section.  A feedlot permit is not required for livestock 
  3.8   feedlots with more than ten but less than 50 animal units; 
  3.9   provided they are not in shoreland areas.  These rules apply 
  3.10  both to permits issued by counties and to permits issued by the 
  3.11  pollution control agency directly.  
  3.12     (h) The pollution control agency shall exercise supervising 
  3.13  authority with respect to the processing of animal lot permit 
  3.14  applications by a county. 
  3.15     (i) After May 17, 1997, any new rules or amendments to 
  3.16  existing rules proposed under the authority granted in this 
  3.17  subdivision, must be submitted to the members of legislative 
  3.18  policy committees with jurisdiction over agriculture and the 
  3.19  environment prior to final adoption.  The rules must not become 
  3.20  effective until 90 days after the proposed rules are submitted 
  3.21  to the members.  
  3.22     (j) Until new rules are adopted that provide for plans for 
  3.23  manure storage structures, any plans for a liquid manure storage 
  3.24  structure must be prepared or approved by a registered 
  3.25  professional engineer or a United States Department of 
  3.26  Agriculture, Natural Resources Conservation Service employee. 
  3.27     (k) A county may adopt by ordinance standards for animal 
  3.28  feedlots that are more stringent than standards in pollution 
  3.29  control agency rules. 
  3.30     (l) After January 1, 2001, a county that has not accepted 
  3.31  delegation of the feedlot permit program must hold a public 
  3.32  meeting prior to the agency issuing a feedlot permit for a 
  3.33  feedlot facility with 300 or more animal units, unless another 
  3.34  public meeting has been held with regard to the feedlot facility 
  3.35  to be permitted. 
  3.36     Sec. 2.  Minnesota Statutes 1998, section 116.07, is 
  4.1   amended by adding a subdivision to read: 
  4.2      Subd. 7d.  [EXCLUSION.] In regulating livestock or animal 
  4.3   feedlots under subdivisions 7 to 7c, a county or the 
  4.4   commissioner must not include manure runoff contaminant areas 
  4.5   that are less than 6,000 cubic feet in the definition of an open 
  4.6   air clay, earthen, or flexible membrane lined swine waste lagoon.
  4.7      Sec. 3.  Minnesota Statutes 1998, section 116.0713, is 
  4.8   amended to read: 
  4.9      116.0713 [LIVESTOCK ODOR.] 
  4.10     (a) The pollution control agency must: 
  4.11     (1) monitor and identify potential livestock facility 
  4.12  violations of the state ambient air quality standards for 
  4.13  hydrogen sulfide, using a protocol for responding to citizen 
  4.14  complaints regarding feedlot odor and its hydrogen sulfide 
  4.15  component, including the appropriate use of portable monitoring 
  4.16  equipment that enables monitoring staff to follow plumes; 
  4.17     (2) when livestock production facilities are found to be in 
  4.18  violation of ambient hydrogen sulfide standards, take 
  4.19  appropriate actions necessary to ensure compliance, utilizing 
  4.20  appropriate technical assistance and enforcement and penalty 
  4.21  authorities provided to the agency by statute and rule. 
  4.22     (b) Until July 1, 2004, the state ambient air quality 
  4.23  standards shall not apply to a feedlot facility during the 
  4.24  agitation and pumpout process of a liquid manure storage system 
  4.25  if: 
  4.26     (1) the owner or operator of the feedlot facility employs 
  4.27  best management practices to agitate, pump, and land apply the 
  4.28  manure in an efficient and expedient manner, including all 
  4.29  practical steps to modify the agitation and pumpout process to 
  4.30  reduce the emission of hydrogen sulfide and odorous gases; and 
  4.31     (2) the owner or operator notifies residents living near 
  4.32  the operation in advance of agitating and pumping a liquid 
  4.33  manure storage system. 
  4.34     (c) The air space above property situated within the 
  4.35  contiguous land area inside the property boundaries of a farm or 
  4.36  a parcel of agricultural land on which a livestock production 
  5.1   facility is located shall be exempt from ambient air quality 
  5.2   standards.  This exemption shall include the property where the 
  5.3   feedlot is located and contiguous land where air quality 
  5.4   easements have been obtained. 
  5.5      Sec. 4.  Minnesota Statutes 1998, section 116.072, is 
  5.6   amended by adding a subdivision to read: 
  5.7      Subd. 13.  [FEEDLOT ADMINISTRATIVE PENALTY ORDERS; FIRST 
  5.8   VIOLATIONS.] (a) At least 30 days prior to the commissioner 
  5.9   issuing an administrative penalty order to a feedlot operator 
  5.10  for a first violation of feedlot laws or rules, agency staff 
  5.11  shall offer to meet with the feedlot operator to advise the 
  5.12  operator of the nature of the violation, the time period allowed 
  5.13  for correction of the violation, and the amount of the proposed 
  5.14  administrative penalty. 
  5.15     (b) The commissioner shall reduce the amount of the 
  5.16  administrative penalty for a first violation of feedlot laws or 
  5.17  rules by the amount spent after the notice of violation by the 
  5.18  feedlot operator on environmental improvements to the feedlot or 
  5.19  90 percent of the proposed administrative penalty, whichever is 
  5.20  less.