HF 748

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 06/03/2025 10:53 a.m.

A bill for an act
relating to transportation; amending project assessment criteria and mitigation
activities for vehicle miles traveled requirements; modifying transportation policy
goals and greenhouse gas emission targets; amending Minnesota Statutes 2024,
sections 161.178; 174.01, subdivisions 2, 3; 174.03, subdivision 1a.

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

Section 1.

Minnesota Statutes 2024, section 161.178, is amended to read:

161.178 TRANSPORTATION GREENHOUSE GAS EMISSIONS IMPACT
ASSESSMENT.

Subdivision 1.

Definitions.

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

(b) "Applicable entity" means the commissioner with respect to a project or portfolio
for inclusion in the state transportation improvement program or a metropolitan planning
organization with respect to a project or portfolio for inclusion in the appropriate metropolitan
transportation improvement program.

(c) "Assessment" means the impact assessment under this section.

(d) "Capacity expansion project" means a project for trunk highway construction or
reconstruction that:

(1) deleted text begin is a major highway project, as defined in section 174.56, subdivision 1, paragraph
(b) deleted text end new text begin has a total construction cost for all segments that the commissioner estimates to be at
least $30,000,000 new text end ; and

(2) adds deleted text begin highway traffic capacity or provides for grade separation of motor vehicle traffic
at an intersection deleted text end new text begin additional lane miles new text end , excluding deleted text begin auxiliary deleted text end lanes with a length of less than
deleted text begin 2,500 deleted text end new text begin 5,000 new text end feet.

(e) "Greenhouse gas emissions" includes those emissions described in section 216H.01,
subdivision 2.

Subd. 2.

Project or portfolio assessment.

(a) Prior to inclusion of a project or portfolio
in the state transportation improvement program or in a metropolitan transportation
improvement program, the applicable entity must perform an impact assessment of the
project or portfolio. Following the assessment, the applicable entity must determine if the
project or portfolio is deleted text begin proportionally in conformance deleted text end new text begin consistent new text end with deleted text begin :
deleted text end

deleted text begin (1) deleted text end the greenhouse gas emissions reduction targets under section 174.01, subdivision 3 deleted text begin ;
and
deleted text end

deleted text begin (2) the vehicle miles traveled reduction targets established in the statewide multimodal
transportation plan under section 174.03, subdivision 1a deleted text end .

(b) new text begin The applicable entity may evaluate consistency under paragraph (a) taking into
account net greenhouse gas emissions reductions (1) otherwise resulting from projects within
that portfolio, and (2) due to other identified projects in the state transportation improvement
program, the appropriate metropolitan transportation improvement program, or a combination.
A project or portfolio evaluation must not account for the same projects as identified in a
separate evaluation under this subdivision.
new text end

new text begin (c) new text end If the applicable entity determines that the project or portfolio deleted text begin is not in conformance
with deleted text end new text begin does not meet the consistency under new text end paragraph (a), the applicable entity must:

(1) alter the scope or design of the project or any number of projects, add or remove one
or more projects from the portfolio, or undertake a combination, and subsequently perform
a revised assessment that meets the requirements under this section;

(2) interlink sufficient impact mitigation as provided in subdivision 4; or

(3) halt project development and disallow inclusion of the project or portfolio in the
appropriate transportation improvement program.

Subd. 2a.

Applicable projects new text begin ; implementation new text end .

(a) For purposes of this section:

(1) prior to the date established under paragraph deleted text begin (b), a project or portfolio is a capacity
expansion project deleted text end new text begin (c), the requirements under this section do not apply to any project new text end ; and

(2) on and after the date established under paragraph deleted text begin (b) deleted text end new text begin (c) new text end , a project or portfolio is a
capacity expansion project or a collection of trunk highway and multimodal projects for a
fiscal year and specific region.

(b) new text begin A project or portfolio does not include a project that:
new text end

new text begin (1) is identified as included in the transportation safety investment category established
in the Minnesota state highway investment plan under section 174.03, subdivision 1c;
new text end

new text begin (2) is funded wholly or in part from federal funds; or
new text end

new text begin (3) is exempted by the commissioner as provided under subdivision 7, paragraph (b).
new text end

new text begin (c) new text end The commissioner must establish a date to implement impact assessments on the
basis of assessing a portfolio or program of projects deleted text begin instead of on a project-by-project basis deleted text end .
The date must be:

(1) August 1, deleted text begin 2027 deleted text end new text begin 2030 new text end , which applies to projects that first enter the appropriate
transportation improvement program for fiscal year deleted text begin 2031 deleted text end new text begin 2034 new text end or a subsequent year; or

(2) as established by the commissioner, if the commissioner:

(i) consults with metropolitan planning organizations;

(ii) prioritizes and makes reasonable efforts to meet the date under clause (1) deleted text begin or an earlier
deleted text end deleted text begin date deleted text end ;

(iii) determines that the date established under this clause is the earliest practicable in
which the necessary models and tools are sufficient for analysis under this section; and

(iv) submits a notice to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over transportation policy and finance, which
must identify the date established and summarize the efforts under item (ii) and the
determination under item (iii).

Subd. 3.

Assessment requirements.

(a) The commissioner must establish a process to
implement the requirements under this section, which includes:

(1) any necessary policies, procedures, manuals, and technical specifications;

(2) procedures to perform an impact assessment that provide for the determination under
subdivision 2;

(3) in consultation with the technical advisory committee under section 161.1782, criteria
for identification of a capacity expansion project; and

(4) related data reporting from local units of government on local multimodal
transportation systems and local project impacts on greenhouse gas emissions and vehicle
miles traveled.

(b) Analysis under an assessment must include but is not limited to estimates resulting
from a project or portfolio for the following:

(1) greenhouse gas emissions over a period of 20 years; new text begin and
new text end

deleted text begin (2) a net change in vehicle miles traveled for the affected network; and
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end impacts to trunk highways deleted text begin and related impacts to local road systems, on a local,
regional, or statewide basis, as appropriate deleted text end .

Subd. 4.

Impact mitigation; interlinking.

(a) To provide for impact mitigation, the
applicable entity must interlink the project or portfolio as provided in this subdivision.

(b) Impact mitigation is sufficient under subdivision 2, paragraph deleted text begin (b) deleted text end new text begin (c) new text end , if the project
or portfolio is interlinked to offset actions deleted text begin such that the total greenhouse gas emissions
reduction from the offset actions, after accounting for the greenhouse gas emissions otherwise
resulting from the project or portfolio, is consistent with meeting the targets specified under
subdivision 2, paragraph (a) deleted text end new text begin that reduce the greenhouse gas emissions otherwise resulting
from the project or portfolio new text end . Each comparison under this paragraph must be performed
over equal comparison periods.

(c) An offset action consists of a project, program, operations modification, or mitigation
plan in one or more of the following areas:

(1) transit expansion, including but not limited to regular route bus, arterial bus rapid
transit, highway bus rapid transit, rail transit, and intercity passenger rail;

(2) transit service improvements, including but not limited to increased service level,
transit fare reduction, and transit priority treatments;

(3) active transportation infrastructure;

(4) micromobility infrastructure and service, including but not limited to shared vehicle
services;

(5) transportation demand management, including but not limited to vanpool and shared
vehicle programs, remote work, and broadband access expansion;

(6) parking management, including but not limited to parking requirements reduction
or elimination and parking cost adjustments;

(7) land use, including but not limited to residential and other density increases, mixed-use
development, and transit-oriented development;

(8) infrastructure improvements related to traffic operations, including but not limited
to roundabouts and reduced conflict intersections;

(9) natural systems, including but not limited to prairie restoration, reforestation, and
urban green space; deleted text begin and
deleted text end

(10) new text begin improvements to fuel efficiency or adoption of clean fuel technology;
new text end

new text begin (11) acceleration of electric vehicle and other zero-emission vehicle adoption, including
but not limited to electric vehicle infrastructure and zero-emission transit bus procurement
under the requirements specified in law;
new text end

new text begin (12) freight rail infrastructure and service improvements;
new text end

new text begin (13) photovoltaic systems attached or adjacent to transportation facilities; and
new text end

new text begin (14) new text end as specified by the commissioner in the manner provided under paragraph (e).

(d) An offset action may be identified as interlinked to the project or portfolio if:

(1) there is a specified project, program, modification, or mitigation plan;

(2) the necessary funding deleted text begin sources are deleted text end new text begin amount is new text end identified deleted text begin and sufficient amounts are
committed deleted text end ;

(3) the mitigation is localized as provided in subdivision 5; and

(4) procedures are established to ensure that the mitigation action remains in substantially
the same form or a revised form that continues to meet the calculation under paragraph (b).

(e) The commissioner may authorize additional offset actions under paragraph (c) if:

(1) the offset action is reviewed and recommended by the technical advisory committee
under section 161.1782; and

(2) the commissioner determines that the offset action is deleted text begin directly deleted text end related to reduction in
the transportation sector of greenhouse gas emissions deleted text begin or vehicle miles traveled deleted text end .

Subd. 5.

Impact mitigation; localization.

(a) An offset action under subdivision 4 must
be localized in the following priority order:

(1) if the offset action is for one project, within or associated with at least one of the
communities impacted by the project;

(2) if clause (1) does not apply or there is not a reasonably feasible location under clause
(1), in areas of persistent poverty or historically disadvantaged communities, as measured
and defined in federal law, guidance, and notices of funding opportunity;

(3) if there is not a reasonably feasible location under clauses (1) and (2), in the region
of the project or portfolio; or

(4) if there is not a reasonably feasible location under clauses (1) to (3), on a statewide
basis.

(b) The applicable entity must include an explanation regarding the feasibility and
rationale for each mitigation action located under paragraph (a), clauses (2) to (4).

Subd. 6.

Public information.

The commissioner must publish information regarding
impact assessments on the department's website. The information must include:

(1) for each project evaluated separately under this section, identification of the project;

(2) for each project evaluated separately, a summary that includes an overview of the
assessment, the impact determination by the commissioner, and project disposition, including
a review of any offset actions new text begin and the offset action costs new text end ;

(3) for each portfolio of projects, an overview of the projects, the impact determination
by the commissioner, and a summary of any offset actions new text begin and the offset action costs new text end ;

(4) a review of any interpretation of or additions to offset actions under subdivision 4;

(5) identification of the date established by the commissioner under subdivision 2a,
paragraph deleted text begin (b) deleted text end new text begin (c) new text end ; deleted text begin and
deleted text end

(6) new text begin identification of any exemptions provided under subdivision 7, paragraph (b); and
new text end

new text begin (7) new text end a summary of the activities of the technical advisory committee under section
161.1782, including but not limited to any findings or recommendations made by the advisory
committee.

Subd. 7.

Safety and well-being.

new text begin (a) new text end The requirements of this section are in addition to
and must not supplant the safety and well-being goals established under section 174.01,
subdivision 2, clauses (1) and (2).

new text begin (b) The commissioner may exempt a project from the requirements under this section
if the commissioner:
new text end

new text begin (1) identifies a priority for urgent traffic safety response to traffic fatalities or serious
injuries; and
new text end

new text begin (2) in consultation with the technical advisory committee under section 161.1782,
determines that the project reasonably addresses the traffic safety priority identified under
clause (1).
new text end

new text begin (c) Within 90 days of issuing an exemption under paragraph (b), the commissioner must
submit a notice of the exemption to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation finance and policy. At a minimum, the
notice must identify the project and the reasons for the exemption.
new text end

Subd. 8.

Transportation impact assessment and mitigation account.

(a) A
transportation impact assessment and mitigation account is established in the special revenue
fund. The account consists of funds provided by law and any other money donated, allotted,
transferred, or otherwise provided to the account.

(b) Money in the account is annually appropriated to the commissioner and must only
be expended on activities described or required under this section. In determining
expenditures from the account, the commissioner must include prioritization for offset
actions interlinked to trunk highway projects that reduce traffic fatalities or severe injuries.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2024, section 174.01, subdivision 2, is amended to read:

Subd. 2.

Transportation goals.

The goals of the state transportation system are as
follows:

(1) to minimize fatalities and injuries for transportation users throughout the state;

(2) to provide multimodal and intermodal transportation facilities and services to increase
access for all persons and businesses and to ensure economic well-being and quality of life
without undue burden placed on any community;

(3) to provide a reasonable travel time for commuters;

(4) to enhance economic development and provide for the economical, efficient, and
safe movement of goods to and from markets by rail, highway, and waterway;

(5) to encourage tourism by providing appropriate transportation to Minnesota facilities
designed to attract tourists and to enhance the appeal, through transportation investments,
of tourist destinations across the state;

(6) to provide transit services to all counties in the state to meet the needs of transit users;

(7) to promote accountability through systematic management of system performance
and productivity through the utilization of technological advancements;

(8) to maximize the long-term benefits received for each state transportation investment;

(9) to provide for and prioritize funding of transportation investments that ensures that
the state's transportation infrastructure is maintained in a state of good repair;

(10) to ensure that the planning and implementation of all modes of transportation are
consistent with the environmental and energy goals of the state;

(11) to promote and increase the use of high-occupancy vehicles and low-emission
vehicles;

(12) to provide an air transportation system sufficient to encourage economic growth
and allow all regions of the state the ability to participate in the global economy;

(13) to increase use of transit as a percentage of all trips statewide by giving highest
priority to the transportation modes with the greatest people-moving capacity and lowest
long-term economic and environmental cost;

(14) to promote and increase bicycling and walking as a percentage of all trips as
energy-efficient, nonpolluting, and healthy forms of transportation;

(15) new text begin secondary to the goal under clause (1), new text end to reduce greenhouse gas emissions from
the state's transportation sector; and

(16) new text begin secondary to the goal under clause (1), new text end to accomplish these goals with minimal
impact on the environment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 174.01, subdivision 3, is amended to read:

Subd. 3.

Greenhouse gas emissions targets.

(a) In association with the goals under
subdivision 2, clauses (10) and (13) to (16), new text begin and subject to the transportation system safety
goal under subdivision 2, clause (1), new text end the commissioner of transportation must establish
targets for the statewide greenhouse gas emissions reduction goal under section 216H.02,
subdivision 1.

(b) The targets must include:

(1) establishment of deleted text begin proportional deleted text end emissions reduction performance targets for the
transportation sector;

(2) specification of the performance targets on a five-year or more frequent basis; and

(3) allocation across the transportation sector, which:

(i) must provide for an allocation to the metropolitan area, as defined in section 473.121,
subdivision 2;

(ii) must account for differences in the feasibility and extent of emissions reductions
across forms of land use and across regions of the state; and

(iii) may include performance targets based on Department of Transportation district,
geographic region, a per capita calculation, or transportation mode, or a combination.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2024, section 174.03, subdivision 1a, is amended to read:

Subd. 1a.

Revision of statewide multimodal transportation plan.

(a) The commissioner
must revise the statewide multimodal transportation plan by January 15, 2022, and by
January 15 of every five years thereafter. Before final adoption of a revised plan, the
commissioner must hold a hearing to receive public comment on the preliminary draft of
the revised plan.

(b) Each revised statewide multimodal transportation plan must:

(1) incorporate the goals of the state transportation system in section 174.01;

(2) establish objectives, policies, and strategies for achieving those goals; and

(3) identify performance targets for measuring progress and achievement of transportation
system goals, objectives, or policies.

new text begin (c) Any vehicle miles traveled reduction targets established in the plan are secondary to
the transportation system safety and economic well-being goals under section 174.01,
subdivision 2, clauses (1) and (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to plans adopted on or after that date.
new text end