HF 955

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 04:41pm

A bill for an act
relating to environment; requiring financial assurance for certain feedlot permits;
requiring inventories and reports; appropriating money; amending Minnesota
Statutes 2022, section 116.07, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2022, section 116.07, is amended by adding a subdivision
to read:

new text begin Subd. 7f. new text end

new text begin Financial assurance. new text end

new text begin (a) Before the commissioner issues or renews a permit
for a feedlot with a capacity of 1,000 or more animal units, the permit applicant must submit
to the commissioner proof of financial assurance that satisfies the requirements under this
subdivision. Financial assurance must be of an amount sufficient to pay the closure costs
determined under paragraph (c) for the feedlot and manure storage area, with all terms and
conditions of the financial assurance instrument approved by the commissioner. The
commissioner, in evaluating financial assurance, may consult individuals with documented
experience in the analysis. The applicant must pay all costs incurred by the commissioner
to obtain the analysis.
new text end

new text begin (b) A permittee must maintain sufficient financial assurance for the duration of the permit
and demonstrate to the commissioner's satisfaction that:
new text end

new text begin (1) money will be available and made payable to the commissioner if the commissioner
determines the permittee is not in full compliance with the closure requirements established
by the commissioner in rule for feedlots and manure storage areas;
new text end

new text begin (2) the financial assurance instrument is fully valid, binding, and enforceable under state
and federal law;
new text end

new text begin (3) the financial assurance instrument is not dischargeable through bankruptcy; and
new text end

new text begin (4) the financial assurance provider will give the commissioner at least 120 days' notice
before canceling the financial assurance instrument.
new text end

new text begin (c) The permit applicant must submit to the commissioner a documented estimate of
costs required to implement the closure requirements established by the commissioner in
rule for feedlots and manure storage areas. Cost estimates must incorporate current dollar
values at the time of the estimate and any additional costs required by the commissioner to
oversee and hire a third party to implement the closure requirements. The applicant must
not incorporate the estimated salvage or market value of manure, animals, structures,
equipment, land, or other assets. The commissioner must evaluate and may modify the
applicant's cost estimates and may consult individuals with documented experience in feedlot
or manure storage area closure or remediation. The applicant must pay all costs incurred
by the commissioner to obtain the consultation.
new text end

Sec. 2.

Minnesota Statutes 2022, section 116.07, is amended by adding a subdivision to
read:

new text begin Subd. 7g. new text end

new text begin Abandoned manure storage areas. new text end

new text begin At least annually, the commissioner must
compile a list of abandoned manure storage areas in the state. A list compiled under this
subdivision is not a feedlot inventory for purposes of subdivision 7b. For purposes of this
subdivision, "abandoned manure storage areas" means solid and liquid manure storage areas
that have been previously registered with the state as a feedlot with a manure storage area
and have:
new text end

new text begin (1) permanently ceased operation and are subject to, but not in compliance with, the
closure requirements established by the commissioner in rule for feedlots and manure storage
areas; or
new text end

new text begin (2) been unused for at least three years.
new text end

Sec. 3. new text begin FEEDLOT FINANCIAL ASSURANCE REQUIREMENTS COMPLIANCE
SCHEDULE.
new text end

new text begin The commissioner of the Pollution Control Agency may phase in the new financial
assurance requirements under Minnesota Statutes, section 116.07, subdivision 7f, during
the next reissuance of the national pollutant discharge elimination system general permit
for concentrated animal feeding operations, MNG440000. The commissioner must establish
a schedule for permittees to come into compliance with the requirements. The schedule
must require 250 permittees per year to comply, beginning with the operations with the
largest number of animal units.
new text end

Sec. 4. new text begin MANURE STORAGE AREA REPORTS REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Reports. new text end

new text begin (a) No later than December 15, 2023, the commissioner of the
Pollution Control Agency must develop a list based on registration data for each county of
potentially abandoned manure storage areas.
new text end

new text begin (b) No later than January 15, 2025, each delegated county must report to the commissioner
of the Pollution Control Agency a list of abandoned manure storage areas located in the
county. The report must be submitted by the county feedlot officer.
new text end

new text begin (c) No later than January 15, 2025, the Pollution Control Agency regional feedlot staff
must compile a list of abandoned manure storage areas located in counties under their
regulatory jurisdiction that do not have delegation agreements with the agency.
new text end

new text begin (d) No later than February 15, 2025, the commissioner of the Pollution Control Agency
must submit a compilation report and list of abandoned manure storage areas to the legislative
committees with jurisdiction over agriculture and environment. The report must include
recommendations for remediation. The commissioner must seek advice from the Minnesota
Association of County Feedlot Officers and livestock associations for recommendations,
including existing and any proposed options for remediation.
new text end

new text begin (e) For purposes of this section, "abandoned manure storage areas" has the meaning
given in Minnesota Statutes, section 116.07, subdivision 7g.
new text end

new text begin (f) Reports and lists required under this section are not feedlot inventories for purposes
of Minnesota Statutes, section 116.07, subdivision 7b.
new text end

new text begin Subd. 2. new text end

new text begin Delegated counties. new text end

new text begin (a) Except as provided in paragraph (b), during the 2023
and 2024 delegation years, the commissioner of the Pollution Control Agency must not
penalize a delegated county for a performance issue or shortcoming attributable to the
county's reassignment of county feedlot officer resources necessary to comply with the
additional requirements imposed upon the county under subdivision 1.
new text end

new text begin (b) The commissioner may penalize a county during the 2023 or 2024 delegation year
for a performance issue or shortcoming attributable to the county's reassignment of county
feedlot officer resources only if the specific penalty is approved by a majority of the board
of the Minnesota Association of County Feedlot Officers.
new text end

Sec. 5. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin General fund. new text end

new text begin (a) $250,000 in fiscal year 2024 and $250,000 in fiscal
year 2025 are appropriated from the general fund to the commissioner of the Pollution
Control Agency to implement feedlot financial assurance requirements and compile the
annual list of abandoned manure storage areas under Minnesota Statutes, section 116.07,
subdivisions 7f and 7g.
new text end

new text begin (b) $700,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of the Pollution Control Agency for distribution to delegated counties based on registered
feedlots and manure storage areas for inspections of manure storage areas and the abandoned
manure storage area reports required under this act. This is a onetime appropriation and is
available until June 30, 2025.
new text end

new text begin (c) $250,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of the Pollution Control Agency for a grant to the Minnesota Association of County Feedlot
Officers to provide training on state feedlot requirements, working efficiently and effectively
with producers, and reducing the incidence of manure or nutrients entering surface water
or groundwater.
new text end

new text begin Subd. 2. new text end

new text begin Environmental fund. new text end

new text begin $250,000 in fiscal year 2024 and $250,000 in fiscal year
2025 are appropriated from the environmental fund to the commissioner of the Pollution
Control Agency to implement feedlot financial assurance requirements and compile the
annual list of abandoned manure storage areas under Minnesota Statutes, section 116.07,
subdivisions 7f and 7g.
new text end