SF 3852

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/08/2026 09:01 a.m.

A bill for an act
relating to environment; requiring certain users of large amounts of groundwater
to apply for their own water-use permit instead of modifying an existing municipal
permit; amending Minnesota Statutes 2024, section 103G.281, subdivision 3;
Minnesota Statutes 2025 Supplement, section 103G.271, subdivision 5b.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 103G.271, subdivision 5b, is
amended to read:

Subd. 5b.

Large water appropriation projects; permit conditions.

(a) In issuing new
or modified water-use permits to applicants that meet the definition of a data center, as
defined in section 216B.02, subdivision 11, whose proposed new or additional consumptive
use exceeds 100,000,000 gallons per year, or for existing permits where the permittee intends
to provide more than 100,000,000 gallons of water per year to a data center, the department
shall ensure that:

(1) public health, safety, and welfare are adequately protected;

(2) technologies or measures that promote water conservation, the efficient use of water,
and watershed health, are reasonably considered, including but not limited to using water
efficient fixtures and practices, recycling water before discharging, partnering with local
water utilities to use discharged water from the data center, using reclaimed water, installing
closed-loop systems, and supporting water restoration and replenishment in local watersheds;
and

(3) water use conflicts are addressed as prescribed in Minnesota Rules, part 6115.0740.

deleted text begin (b) The commissioner shall require an applicant to conduct an aquifer test as provided
under section 103G.287, if the commissioner determines that the test results are necessary
in order to ensure compliance with paragraph (a), clause (1).
deleted text end

new text begin (b) A user that proposes a new or modified water use permit for a new or additional
industrial or commercial consumptive use must apply for its own water-use permit and may
not rely on the modification of a municipal permit if the new or additional use will:
new text end

new text begin (1) exceed 100,000,000 gallons per year; or
new text end

new text begin (2) exceed an amount equal to 50 percent or more of a municipality's current authorized
annual appropriation volume.
new text end

new text begin (c) Before issuing a permit under this section, the commissioner must:
new text end

new text begin (1) prepare a draft permit and provide a notice and comment period. The commissioner
must:
new text end

new text begin (i) post the draft permit on the department's website;
new text end

new text begin (ii) provide at least 30 days for public comment on the draft permit;
new text end

new text begin (iii) provide notice of the draft permit and comment period to the applicant, all persons
who have registered with the agency to receive notice of permit actions, all municipalities
located within the same United States Geological Survey Hydrologic Unit Code 8 level
watershed as the proposed appropriation, and any other interested person upon request; and
new text end

new text begin (iv) consider the comments received during the comment period in determining whether
to issue the permit and what terms to include in the permit if issued; and
new text end

new text begin (2) conduct an aquifer test as provided under section 103G.287, if the commissioner
determines that the test results are necessary to ensure that public health, safety, and welfare
are adequately protected. When an aquifer test is conducted under this clause, the results
of the test must be included and considered in any environmental review process under
chapter 116D that is related to the permit.
new text end

Sec. 2.

Minnesota Statutes 2024, section 103G.281, subdivision 3, is amended to read:

Subd. 3.

Report.

(a) Records of the amount of water appropriated or used must be kept
for each installation. The readings and the total amount of water appropriated must be
reported new text begin to the commissioner on forms provided by the commissioner as follows:
new text end

new text begin (1) for a use that exceeds the thresholds set in section 103G.271, subdivision 5b,
paragraph (b), by the 15th of each month for water appropriations during the previous month;
and
new text end

new text begin (2) for all other uses, new text end annually deleted text begin to the commissioner deleted text end on or before February 15 of the
following year deleted text begin on forms provided by the commissioner deleted text end .

(b) The records must be submitted with the annual water-use permit processing fee in
section 103G.271.