SF 570

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

Posted on 07/15/2025 11:21 a.m.

A bill for an act
relating to environment; modifying permitting efficiency reporting requirements;
improving the efficiency of the environmental and resource management permit
application process; requiring the Pollution Control Agency to issue separate
permits for the construction and operation of certain facilities; modifying the
expedited permitting process of the Pollution Control Agency; requiring petitioners
for environmental assessment worksheets to reside in the affected or adjoining
counties; authorizing local governments to begin reviewing feedlot permit
applications before environmental review is complete; eliminating scoping
environmental assessment worksheet requirements for projects requiring an
environmental impact statement; requiring modification of the state implementation
plan; requiring reports; appropriating money; amending Minnesota Statutes 2024,
sections 116.03, subdivision 2b; 116.07, subdivisions 4a, 4d; 116D.04, subdivisions
2a, 2b.

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

Section 1.

Minnesota Statutes 2024, section 116.03, subdivision 2b, is amended to read:

Subd. 2b.

Permitting efficiency.

(a) It is the goal of the state that environmental and
resource management permits be issued or denied within 90 days for tier 1 permits or 150
days for tier 2 permits following submission of a permit application. The commissioner of
the Pollution Control Agency deleted text begin shall deleted text end new text begin must new text end establish management systems designed to achieve
the goal. For the purposes of this section, "tier 1 permits" are permits that do not require
individualized actions or public comment periods, and "tier 2 permits" are permits that
require individualized actions or public comment periods. new text begin Goals established in this paragraph
do not apply to permit applications required due to agency enforcement actions.
new text end

(b) The commissioner deleted text begin shall deleted text end new text begin must new text end prepare an annual permitting efficiency report that
includes statistics on meeting the new text begin tier 2 new text end goal in paragraph (a) and the criteria for tier 2 by
permit categories. The report deleted text begin is due deleted text end new text begin must be submitted to the governor and to the chairs and
ranking minority members of the house of representatives and senate committees having
jurisdiction over environment policy and finance by October 1 new text end deleted text begin August 1 deleted text end each year new text begin and must
be posted on the agency's website new text end . new text begin The report must include:
new text end

new text begin (1) new text end for new text begin each new text end permit deleted text begin applications deleted text end new text begin application new text end that deleted text begin have deleted text end new text begin has new text end not met the goal, deleted text begin the report
must state the reasons for not meeting the goal. In stating the reasons for not meeting the
goal, the commissioner shall separately identify delays deleted text end new text begin an explanation of whether the delay
was new text end caused by the responsiveness of the proposer, lack of staff, scientific or technical
disagreements, or the level of public engagement deleted text begin . The report must specify deleted text end new text begin ;
new text end

new text begin (2) for each permit that has not met the goal, new text end the number of days from initial submission
of the application to the day of determination that the application is complete deleted text begin . The report
must aggregate deleted text end new text begin ;
new text end

new text begin (3) a summary of new text end the data for the deleted text begin year deleted text end new text begin reporting period new text end and deleted text begin assess deleted text end new text begin an assessment of new text end
whether program or system changes are necessary to achieve the new text begin tier 2 new text end goal deleted text begin . The report
must be posted on the agency's website and submitted to the governor and the chairs and
ranking minority members of the house of representatives and senate committees having
jurisdiction over environment policy and finance. deleted text end new text begin in paragraph (a);
new text end

new text begin (4) a statement of the number of tier 2 permits completed within the reporting period
and, immediately following in parentheses, a statement of the percentage of total applications
received for that tier 2 permit category that the number represents, stated separately for
industrial and municipal permits; and
new text end

new text begin (5) for permits that did not meet the goal due to lack of staff, a combined estimate of
the aggregate staff resources that would have been necessary for all affected permits to meet
the goal.
new text end

(c) The commissioner deleted text begin shall deleted text end new text begin must new text end allow electronic submission of environmental review
and permit documents to the agency.

(d) Within 30 business days of application for a permit subject to paragraph (a), the
commissioner of the Pollution Control Agency deleted text begin shall deleted text end new text begin must new text end notify the permit applicant, in
writing, deleted text begin whether the application is complete or incomplete. If the commissioner determines
that an application is incomplete, the notice to the applicant must enumerate deleted text end new text begin of new text end all
deficiencies deleted text begin , deleted text end new text begin while new text end citing specific provisions of the applicable rules and statutes, and new text begin must new text end
advise the applicant on how the deficiencies can be remedied. new text begin The applicant shall have five
business days to remedy all identified deficiencies before the commissioner determines that
the application is complete or incomplete. new text end If the commissioner determines that the application
is complete, the deleted text begin notice deleted text end new text begin commissioner new text end must confirm the application's tier 1 or tier 2 permit
status. If the commissioner believes that a complete application for a tier 2 construction
permit cannot be issued within the 150-day goal, the commissioner must provide notice to
the applicant with the commissioner's notice that the application is complete and, upon
request of the applicant, provide the permit applicant with a schedule estimating when the
agency will begin drafting the permit and issue the public notice of the draft permit. This
paragraph does not apply to an application for a permit that is subject to a grant or loan
agreement under chapter 446A.

(e) For purposes of this subdivision, "permit professional" means an individual not
employed by the Pollution Control Agency who:

(1) has a professional license issued by the state of Minnesota in the subject area of the
permit;

(2) has at least ten years of experience in the subject area of the permit; and

(3) abides by the duty of candor applicable to employees of the Pollution Control Agency
under agency rules and complies with all applicable requirements under chapter 326.

(f) Upon the agency's request, an applicant relying on a permit professional must
participate in a meeting with the agency before submitting an application:

(1) at least two weeks prior to the preapplication meeting, the applicant must submit at
least the following:

(i) project description, including, but not limited to, scope of work, primary emissions
points, discharge outfalls, and water intake points;

(ii) location of the project, including county, municipality, and location on the site;

(iii) business schedule for project completion; and

(iv) other information requested by the agency at least four weeks prior to the scheduled
meeting; and

(2) during the preapplication meeting, the agency deleted text begin shall deleted text end new text begin must new text end provide for the applicant
at least the following:

(i) an overview of the permit review program;

(ii) a determination of which specific application or applications will be necessary to
complete the project;

(iii) a statement notifying the applicant if the specific permit being sought requires a
mandatory public hearing or comment period;

(iv) a review of the timetable established in the permit review program for the specific
permit being sought; and

(v) a determination of what information must be included in the application, including
a description of any required modeling or testing.

(g) The applicant may select a permit professional to undertake the preparation of the
permit application and draft permit.

(h) If a preapplication meeting was held, the agency deleted text begin shall deleted text end new text begin must new text end , within seven business
days of receipt of an application, notify the applicant and submitting permit professional
that the application is complete or is denied, specifying the deficiencies of the application.

(i) Upon receipt of notice that the application is complete, the permit professional deleted text begin shall deleted text end new text begin
must new text end submit to the agency a timetable for submitting a draft permit. The permit professional
deleted text begin shall deleted text end new text begin must new text end submit a draft permit on or before the date provided in the timetable. Within 60
days after the close of the public comment period, the commissioner deleted text begin shall deleted text end new text begin must new text end notify the
applicant whether the permit can be issued.

(j) Nothing in this section shall be construed to modify:

(1) any requirement of law that is necessary to retain federal delegation to or assumption
by the state; or

(2) the authority to implement a federal law or program.

(k) The permit application and draft permit deleted text begin shall deleted text end new text begin must new text end identify or include as an appendix
all studies and other sources of information used to substantiate the analysis contained in
the permit application and draft permit. The commissioner deleted text begin shall deleted text end new text begin must new text end request additional
studies, if needed, and the permit applicant deleted text begin shall deleted text end new text begin must new text end submit all additional studies and
information necessary for the commissioner to perform the commissioner's responsibility
to review, modify, and determine the completeness of the application and approve the draft
permit.

Sec. 2.

Minnesota Statutes 2024, section 116.07, subdivision 4a, is amended to read:

Subd. 4a.

Permits.

(a) The Pollution Control Agency may issue, continue in effect or
deny permits, under such conditions as it may prescribe for the prevention of pollution, for
the emission of air contaminants, or for the installation or operation of any emission facility,
air contaminant treatment facility, treatment facility, potential air contaminant storage
facility, or storage facility, or any part thereof, or for the sources or emissions of noise
pollution. new text begin The Pollution Control Agency may issue separate permits for constructing a
facility described in this paragraph and for its operation, except for a facility required to
complete a mandatory environmental impact statement under Minnesota Rules, part
4410.4400. The Pollution Control Agency must prioritize these permits in a manner that
minimizes the time required to construct and begin operation of the permitted facility while
complying with state and federal requirements.
new text end

(b) The Pollution Control Agency may also issue, continue in effect or deny permits,
under such conditions as it may prescribe for the prevention of pollution, for the storage,
collection, transportation, processing, or disposal of waste, or for the installation or operation
of any system or facility, or any part thereof, related to the storage, collection, transportation,
processing, or disposal of waste.

(c) The agency may not issue a permit to a facility without analyzing and considering
the cumulative levels and effects of past and current environmental pollution from all sources
on the environment and residents of the geographic area within which the facility's emissions
are likely to be deposited, provided that the facility is located in a community in a city of
the first class in Hennepin County that meets all of the following conditions:

(1) is within a half mile of a site designated by the federal government as an EPA
superfund site due to residential arsenic contamination;

(2) a majority of the population are low-income persons of color and American Indians;

(3) a disproportionate percent of the children have childhood lead poisoning, asthma,
or other environmentally related health problems;

(4) is located in a city that has experienced numerous air quality alert days of dangerous
air quality for sensitive populations between February 2007 and February 2008; and

(5) is located near the junctions of several heavily trafficked state and county highways
and two one-way streets which carry both truck and auto traffic.

(d) The Pollution Control Agency may revoke or modify any permit issued under this
subdivision and section 116.081 whenever it is necessary, in the opinion of the agency, to
prevent or abate pollution.

(e) The Pollution Control Agency has the authority for approval over the siting, expansion,
or operation of a solid waste facility with regard to environmental issues. However, the
agency's issuance of a permit does not release the permittee from any liability, penalty, or
duty imposed by any applicable county ordinances. Nothing in this chapter precludes, or
shall be construed to preclude, a county from enforcing land use controls, regulations, and
ordinances existing at the time of the permit application and adopted pursuant to Minnesota
Statutes 2020, sections 366.10 to 366.181, or sections 394.21 to 394.37, or 462.351 to
462.365, with regard to the siting, expansion, or operation of a solid waste facility.

(f) Except as prohibited by federal law, a person may commence construction,
reconstruction, replacement, or modification of any facility prior to the issuance of a
construction permit by the agency.

Sec. 3.

Minnesota Statutes 2024, section 116.07, subdivision 4d, is amended to read:

Subd. 4d.

Permit fees.

(a) The agency may collect permit fees in amounts not greater
than those necessary to cover the reasonable costs of developing, reviewing, and acting
upon applications for agency permits and implementing and enforcing the conditions of the
permits pursuant to agency rules. Permit fees shall not include the costs of litigation. The
fee schedule must reflect reasonable and routine direct and indirect costs associated with
permitting, implementation, and enforcement. The agency may impose an additional
enforcement fee to be collected for a period of up to two years to cover the reasonable costs
of implementing and enforcing the conditions of a permit under the rules of the agency.
Any money collected under this paragraph shall be deposited in the environmental fund.

(b) Notwithstanding paragraph (a), the agency shall collect an annual fee from the owner
or operator of all stationary sources, emission facilities, emissions units, air contaminant
treatment facilities, treatment facilities, potential air contaminant storage facilities, or storage
facilities subject to a notification, permit, or license requirement under this chapter,
subchapters I and V of the federal Clean Air Act, United States Code, title 42, section 7401
et seq., or rules adopted thereunder. The annual fee shall be used to pay for all direct and
indirect reasonable costs, including legal costs, required to develop and administer the
notification, permit, or license program requirements of this chapter, subchapters I and V
of the federal Clean Air Act, United States Code, title 42, section 7401 et seq., or rules
adopted thereunder. Those costs include the reasonable costs of reviewing and acting upon
an application for a permit; implementing and enforcing statutes, rules, and the terms and
conditions of a permit; emissions, ambient, and deposition monitoring; preparing generally
applicable regulations; responding to federal guidance; modeling, analyses, and
demonstrations; preparing inventories and tracking emissions; and providing information
to the public about these activities.

(c) The agency shall set fees that:

(1) will result in the collection, in the aggregate, from the sources listed in paragraph
(b), of an amount not less than $25 per ton of each volatile organic compound; pollutant
regulated under United States Code, title 42, section 7411 or 7412 (section 111 or 112 of
the federal Clean Air Act); and each pollutant, except carbon monoxide, for which a national
primary ambient air quality standard has been promulgated;

(2) may result in the collection, in the aggregate, from the sources listed in paragraph
(b), of an amount not less than $25 per ton of each pollutant not listed in clause (1) that is
regulated under this chapter or air quality rules adopted under this chapter; and

(3) shall collect, in the aggregate, from the sources listed in paragraph (b), the amount
needed to match grant funds received by the state under United States Code, title 42, section
7405 (section 105 of the federal Clean Air Act).

The agency must not include in the calculation of the aggregate amount to be collected
under clauses (1) and (2) any amount in excess of 4,000 tons per year of each air pollutant
from a source. The increase in air permit fees to match federal grant funds shall be a surcharge
on existing fees. The commissioner may not collect the surcharge after the grant funds
become unavailable. In addition, the commissioner shall use nonfee funds to the extent
practical to match the grant funds so that the fee surcharge is minimized.

(d) To cover the reasonable costs described in paragraph (b), the agency shall provide
in the rules promulgated under paragraph (c) for an increase in the fee collected in each
year by the percentage, if any, by which the Consumer Price Index for the most recent
calendar year ending before the beginning of the year the fee is collected exceeds the
Consumer Price Index for the calendar year 1989. For purposes of this paragraph the
Consumer Price Index for any calendar year is the average of the Consumer Price Index for
all-urban consumers published by the United States Department of Labor, as of the close
of the 12-month period ending on August 31 of each calendar year. The revision of the
Consumer Price Index that is most consistent with the Consumer Price Index for calendar
year 1989 shall be used.

(e) Any money collected under paragraphs (b) to (d) must be deposited in the
environmental fund and must be used solely for the activities listed in paragraph (b).

(f) Permit applicants who wish to construct, reconstruct, or modify a project may deleted text begin offer deleted text end new text begin
request expedited permitting under this paragraph. An applicant requesting expedited
permitting under this paragraph must agree new text end to reimburse the agency for the costs of staff
time or consultant services needed to expedite the preapplication process and permit
development process through the final decision on the permit, including the analysis of
environmental review documents. The reimbursement deleted text begin shall be deleted text end new text begin is new text end in addition to permit
application fees imposed by law. deleted text begin When the agency determines that it needs additional
resources to develop the permit application in an expedited manner, and that expediting the
development is consistent with permitting program priorities, the agency may accept the
reimbursement. deleted text end The commissioner must give the applicant an estimate of new text begin the timeline and
new text end costs to be incurred by the commissioner. The estimate must include a brief description of
the tasks to be performed, a schedule for completing the tasks, and the estimated cost for
each task. new text begin If the applicant agrees to the estimated timeline and costs negotiated with the
commissioner, new text end the applicant and the commissioner must enter into a written agreement
deleted text begin detailing the estimated costs for the expedited permit decision-making process to be incurred
by the agency deleted text end new text begin to proceed accordingly new text end . The agreement must deleted text begin also deleted text end identify staff anticipated
to be assigned to the project. new text begin The agreement may provide that, if permitting is completed
ahead of the schedule set forth in the written agreement, the commissioner may retain any
fees that would have been due if the permitting had taken the time contemplated in the
written agreement. Fees retained by the commissioner under this paragraph are appropriated
to the commissioner for administering the commissioner's permitting duties. new text end The
commissioner must not issue a permit until the applicant has paid all fees in full. The
commissioner must refund any unobligated balance of fees paid. Reimbursements accepted
by the agency are appropriated to the agency for the purpose of developing the permit or
analyzing environmental review documents. Reimbursement by a permit applicant shall
precede and not be contingent upon issuance of a permit; shall not affect the agency's decision
on whether to issue or deny a permit, what conditions are included in a permit, or the
application of state and federal statutes and rules governing permit determinations; and shall
not affect final decisions regarding environmental review.

(g) The fees under this subdivision are exempt from section 16A.1285.

Sec. 4.

Minnesota Statutes 2024, section 116D.04, subdivision 2a, is amended to read:

Subd. 2a.

When prepared.

(a) Where there is potential for significant environmental
effects resulting from any major governmental action, the action must be preceded by a
detailed environmental impact statement prepared by the responsible governmental unit.
The environmental impact statement must be an analytical rather than an encyclopedic
document that describes the proposed action in detail, analyzes its significant environmental
impacts, discusses appropriate alternatives to the proposed action and their impacts, and
explores methods by which adverse environmental impacts of an action could be mitigated.
The environmental impact statement must also analyze those economic, employment, and
sociological effects that cannot be avoided should the action be implemented. To ensure its
use in the decision-making process, the environmental impact statement must be prepared
as early as practical in the formulation of an action.

(b) The board deleted text begin shall deleted text end new text begin must new text end by rule establish categories of actions for which environmental
impact statements and for which environmental assessment worksheets must be prepared
as well as categories of actions for which no environmental review is required under this
section. A mandatory environmental assessment worksheet is not required for the expansion
of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b), or the
conversion of an ethanol plant to a biobutanol facility or the expansion of a biobutanol
facility as defined in section 41A.15, subdivision 2d, based on the capacity of the expanded
or converted facility to produce alcohol fuel, but must be required if the ethanol plant or
biobutanol facility meets or exceeds thresholds of other categories of actions for which
environmental assessment worksheets must be prepared. The responsible governmental unit
for an ethanol plant or biobutanol facility project for which an environmental assessment
worksheet is prepared is the state agency with the greatest responsibility for supervising or
approving the project as a whole.

(c) A mandatory environmental impact statement is not required for a facility or plant
located outside the seven-county metropolitan area that produces less than 125,000,000
gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less than 400,000
tons of chemicals annually, if the facility or plant is: an ethanol plant, as defined in section
41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined in section 41A.15,
subdivision 2d; or a cellulosic biofuel facility. A facility or plant that only uses a cellulosic
feedstock to produce chemical products for use by another facility as a feedstock is not
considered a fuel conversion facility as used in rules adopted under this chapter.

(d) The responsible governmental unit deleted text begin shall deleted text end new text begin must new text end promptly publish notice of the
completion of an environmental assessment worksheet by publishing the notice in at least
one newspaper of general circulation in the geographic area where the project is proposed,
by posting the notice on a website that has been designated as the official publication site
for publication of proceedings, public notices, and summaries of a political subdivision in
which the project is proposed, or in any other manner determined by the board and deleted text begin shall deleted text end new text begin
must new text end provide copies of the environmental assessment worksheet to the board and its member
agencies. Comments on the need for an environmental impact statement may be submitted
to the responsible governmental unit during a 30-day period following publication of the
notice that an environmental assessment worksheet has been completed. The responsible
governmental unit may extend the 30-day comment period for an additional 30 days one
time. Further extensions of the comment period may not be made unless approved by the
project's proposer. The responsible governmental unit's decision on the need for an
environmental impact statement must be based on the environmental assessment worksheet
and the comments received during the comment period, and must be made within 15 days
after the close of the comment period. The board's chair may extend the 15-day period by
not more than 15 additional days upon the request of the responsible governmental unit.

(e) An environmental assessment worksheet must also be prepared for a proposed action
whenever material evidence accompanying a petition by not less than 100 individuals who
reside or own property in deleted text begin the state deleted text end new text begin a Minnesota county where the proposed action will be
undertaken or in one or more adjoining counties new text end , submitted before the proposed project has
received final approval by the appropriate governmental units, demonstrates that, because
of the nature or location of a proposed action, there may be potential for significant
environmental effects. Petitions requesting the preparation of an environmental assessment
worksheet must be submitted to the board. The chair of the board deleted text begin shall deleted text end new text begin must new text end determine the
appropriate responsible governmental unit and forward the petition to it. A decision on the
need for an environmental assessment worksheet must be made by the responsible
governmental unit within 15 days after the petition is received by the responsible
governmental unit. The board's chair may extend the 15-day period by not more than 15
additional days upon request of the responsible governmental unit.

(f) Except in an environmentally sensitive location where Minnesota Rules, part
4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
review under this chapter and rules of the board, if:

(1) the proposed action is:

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

(ii) an expansion of an existing animal feedlot facility with a total cumulative capacity
of less than 1,000 animal units;

(2) the application for the animal feedlot facility includes a written commitment by the
proposer to design, construct, and operate the facility in full compliance with Pollution
Control Agency feedlot rules; and

(3) the county board holds a public meeting for citizen input at least ten business days
before the Pollution Control Agency or county issuing a feedlot permit for the animal feedlot
facility unless another public meeting for citizen input has been held with regard to the
feedlot facility to be permitted. The exemption in this paragraph is in addition to other
exemptions provided under other law and rules of the board.

(g) The board may, before final approval of a proposed project, require preparation of
an environmental assessment worksheet by a responsible governmental unit selected by the
board for any action where environmental review under this section has not been specifically
provided for by rule or otherwise initiated.

(h) An early and open process must be used to limit the scope of the environmental
impact statement to a discussion of those impacts that, because of the nature or location of
the project, have the potential for significant environmental effects. The same process must
be used to determine the form, content, and level of detail of the statement as well as the
alternatives that are appropriate for consideration in the statement. In addition, the permits
that will be required for the proposed action must be identified during the scoping process.
Further, the process must identify those permits for which information will be developed
concurrently with the environmental impact statement. The board deleted text begin shall deleted text end new text begin must new text end provide in its
rules for the expeditious completion of the scoping process. The determinations reached in
the process must be incorporated into the order requiring the preparation of an environmental
impact statement.

(i) The responsible governmental unit deleted text begin shall deleted text end new text begin must new text end , to the extent practicable, avoid
duplication and ensure coordination between state and federal environmental review and
between environmental review and environmental permitting. Whenever practical,
information needed by a governmental unit for making final decisions on permits or other
actions required for a proposed project must be developed in conjunction with the preparation
of an environmental impact statement. When an environmental impact statement is prepared
for a project requiring multiple permits for which two or more agencies' decision processes
include either mandatory or discretionary hearings before a hearing officer before the
agencies' decision on the permit, the agencies may, notwithstanding any law or rule to the
contrary, conduct the hearings in a single consolidated hearing process if requested by the
proposer. All agencies having jurisdiction over a permit that is included in the consolidated
hearing deleted text begin shall deleted text end new text begin must new text end participate. The responsible governmental unit deleted text begin shall deleted text end new text begin must new text end establish
appropriate procedures for the consolidated hearing process, including procedures to ensure
that the consolidated hearing process is consistent with the applicable requirements for each
permit regarding the rights and duties of parties to the hearing, and deleted text begin shall deleted text end new text begin must new text end use the earliest
applicable hearing procedure to initiate the hearing. All agencies having jurisdiction over
a permit identified in the draft environmental assessment worksheet scoping document must
begin reviewing any permit application upon publication of the notice of preparation of the
environmental impact statement.

(j) An environmental impact statement must be prepared and its adequacy determined
within 280 days after notice of its preparation unless the time is extended by consent of the
parties or by the governor for good cause. The responsible governmental unit deleted text begin shall deleted text end new text begin must new text end
determine the adequacy of an environmental impact statement, unless within 60 days after
notice is published that an environmental impact statement will be prepared, the board
chooses to determine the adequacy of an environmental impact statement. If an environmental
impact statement is found to be inadequate, the responsible governmental unit has 60 days
to prepare an adequate environmental impact statement.

(k) The proposer of a specific action may include in the information submitted to the
responsible governmental unit a preliminary draft environmental impact statement under
this section on that action for review, modification, and determination of completeness and
adequacy by the responsible governmental unit. A preliminary draft environmental impact
statement prepared by the project proposer and submitted to the responsible governmental
unit must identify or include as an appendix all studies and other sources of information
used to substantiate the analysis contained in the preliminary draft environmental impact
statement. The responsible governmental unit deleted text begin shall deleted text end new text begin must new text end require additional studies, if needed,
and obtain from the project proposer all additional studies and information necessary for
the responsible governmental unit to perform its responsibility to review, modify, and
determine the completeness and adequacy of the environmental impact statement.

Sec. 5.

Minnesota Statutes 2024, section 116D.04, subdivision 2b, is amended to read:

Subd. 2b.

Project prerequisites.

new text begin (a) new text end If an environmental assessment worksheet or an
environmental impact statement is required for a governmental action under subdivision
2a, a project may not be started and a final governmental decision may not be made to grant
a permit, approve a project, or begin a project, until:

(1) a petition for an environmental assessment worksheet is dismissed;

(2) a negative declaration has been issued on the need for an environmental impact
statement;

(3) the environmental impact statement has been determined adequate; or

(4) a variance has been granted from making an environmental impact statement by the
environmental quality board.

new text begin (b) Nothing in this subdivision precludes a local unit of government from beginning to
review a feedlot permit application for a feedlot subject to environmental review under this
chapter.
new text end

Sec. 6. new text begin SCOPING ENVIRONMENTAL ASSESSMENT WORKSHEET NOT
REQUIRED FOR PROJECTS THAT REQUIRE A MANDATORY
ENVIRONMENTAL IMPACT STATEMENT.
new text end

new text begin (a) The Environmental Quality Board must amend Minnesota Rules, part 4410.2100, as
follows:
new text end

new text begin (1) to provide that an environmental assessment worksheet does not need to be prepared
for a project that falls within a mandatory environmental impact statement category under
Minnesota Rules, part 4410.4400, or other applicable law; and
new text end

new text begin (2) to provide that a scoping process undertaken under Minnesota Rules, part 4410.2100,
must be completed no later than 280 days after the process begins.
new text end

new text begin (b) The board may use the good cause exemption under Minnesota Statutes, section
14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota Statutes,
section 14.386, does not apply except as provided under Minnesota Statutes, section 14.388.
new text end

Sec. 7. new text begin STATE IMPLEMENTATION PLAN REVISIONS.
new text end

new text begin The commissioner of the Pollution Control Agency must seek approval from the federal
Environmental Protection Agency for revisions to the state's federal Clean Air Act state
implementation plan if changes are needed to reflect the requirements of Minnesota Statutes,
section 116.07, subdivision 4a, as amended by this act.
new text end

Sec. 8. new text begin INTENT.
new text end

new text begin The legislature recognizes the need to retain and grow the state's economy and vital
infrastructure to keep Minnesota competitive on a national and global level. This growth
requires innovation and creativity, which will be achieved while protecting our environment
and natural resources as prescribed under current law. It is therefore the intent of the
legislature in enacting this bill that the state will meet or exceed efficiency goals, modernize
existing regulatory systems, and communicate clearly to permit applicants and stakeholders
to ensure a predictable, transparent, and fair permitting and environmental review process.
new text end

Sec. 9. new text begin REPORT ON USE OF AUTHORITY TO EXTEND TIMELINE FOR
CERTAIN AGENCY ACTIONS.
new text end

new text begin By October 1, 2027, the Board of Water and Soil Resources must report to the chairs
and ranking minority members of the legislative committees with jurisdiction over
environment and natural resources policy on the number of extensions under Minnesota
Statutes, section 15.99, subdivision 3, paragraph (f), that are made for any determination
under Minnesota Statutes, sections 103G.221 to 103G.2375, between July 1, 2025, and June
30, 2027. A local government unit must supply the board with information necessary to
prepare the report required by this section.
new text end

Sec. 10. new text begin APPROPRIATION; MINNESOTA BUSINESS FIRST STOP.
new text end

new text begin $325,000 in fiscal year 2026 and $325,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of employment and economic development for the
Minnesota Business First Stop program.
new text end