1.1 	A bill for an act
1.2 	relating to environment; requiring certain users of large amounts of groundwater 
1.3 	to apply for their own water-use permit instead of modifying an existing municipal 
1.4 	permit;amending Minnesota Statutes 2024, section 103G.281, subdivision 3; 
1.5 	Minnesota Statutes 2025 Supplement, section 103G.271, subdivision 5b.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2025 Supplement, section 103G.271, subdivision 5b, is 
1.8 	amended to read:
1.9 		Subd. 5b.Large water appropriation projects; permit conditions. (a) In issuing new 
1.10 	or modified water-use permits to applicants that meet the definition of a data center, as 
1.11 	defined in section 216B.02, subdivision 11, whose proposed new or additional consumptive 
1.12 	use exceeds 100,000,000 gallons per year, or for existing permits where the permittee intends 
1.13 	to provide more than 100,000,000 gallons of water per year to a data center, the department 
1.14 	shall ensure that:
1.15 	(1) public health, safety, and welfare are adequately protected;
1.16 	(2) technologies or measures that promote water conservation, the efficient use of water, 
1.17 	and watershed health, are reasonably considered, including but not limited to using water 
1.18 	efficient fixtures and practices, recycling water before discharging, partnering with local 
1.19 	water utilities to use discharged water from the data center, using reclaimed water, installing 
1.20 	closed-loop systems, and supporting water restoration and replenishment in local watersheds; 
1.21 	and
1.22 	(3) water use conflicts are addressed as prescribed in Minnesota Rules, part 6115.0740.
2.1 	(b) The commissioner shall require an applicant to conduct an aquifer test as provided 
2.2 	under section 103G.287, if the commissioner determines that the test results are necessary 
2.3 	in order to ensure compliance with paragraph (a), clause (1).
2.4 	(b) A user that proposes a new or modified water use permit for a new or additional 
2.5 	industrial or commercial consumptive use must apply for its own water-use permit and may 
2.6 	not rely on the modification of a municipal permit if the new or additional use will:
2.7 	(1) exceed 100,000,000 gallons per year; or
2.8 	(2) exceed an amount equal to 50 percent or more of a municipality's current authorized 
2.9 	annual appropriation volume.
2.10 	(c) Before issuing a permit under this section, the commissioner must:
2.11 	(1) prepare a draft permit and provide a notice and comment period. The commissioner 
2.12 	must:
2.13 	(i) post the draft permit on the department's website;
2.14 	(ii) provide at least 30 days for public comment on the draft permit;
2.15 	(iii) provide notice of the draft permit and comment period to the applicant, all persons 
2.16 	who have registered with the agency to receive notice of permit actions, all municipalities 
2.17 	located within the same United States Geological Survey Hydrologic Unit Code 8 level 
2.18 	watershed as the proposed appropriation, and any other interested person upon request; and
2.19 	(iv) consider the comments received during the comment period in determining whether 
2.20 	to issue the permit and what terms to include in the permit if issued; and
2.21 	(2) conduct an aquifer test as provided under section 103G.287, if the commissioner 
2.22 	determines that the test results are necessary to ensure that public health, safety, and welfare 
2.23 	are adequately protected. When an aquifer test is conducted under this clause, the results 
2.24 	of the test must be included and considered in any environmental review process under 
2.25 	chapter 116D that is related to the permit.

2.26 	Sec. 2. Minnesota Statutes 2024, section 103G.281, subdivision 3, is amended to read:
2.27 		Subd. 3.Report. (a) Records of the amount of water appropriated or used must be kept 
2.28 	for each installation. The readings and the total amount of water appropriated must be 
2.29 	reported to the commissioner on forms provided by the commissioner as follows:
3.1 	(1) for a use that exceeds the thresholds set in section 103G.271, subdivision 5b, 
3.2 	paragraph (b), by the 15th of each month for water appropriations during the previous month; 
3.3 	and
3.4 	(2) for all other uses, annually to the commissioner on or before February 15 of the 
3.5 	following year on forms provided by the commissioner.
3.6 	(b) The records must be submitted with the annual water-use permit processing fee in 
3.7 	section 103G.271.