SF 786

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/14/2013 09:35am

A bill for an act
relating to environment; allowing the creation of a joint powers board related to
silica sand mining in southeastern Minnesota; allowing an extension or renewal of
interim ordinances for new permits for silica sand mining and facilities; requiring
a generic environmental impact statement report; modifying environmental
review; appropriating money; amending Minnesota Statutes 2012, section 93.25,
subdivision 1; proposing coding for new law as Minnesota Statutes, chapter 116Y.

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

Section 1.

Minnesota Statutes 2012, section 93.25, subdivision 1, is amended to read:

Subdivision 1.

Leases.

The commissioner may issue leases to prospect for, mine,
and remove minerals other than iron ore upon any lands owned by the state, including trust
fund lands, lands forfeited for nonpayment of taxes whether held in trust or otherwise, and
lands otherwise acquired, and the beds of any waters belonging to the state. For purposes
of this section, iron ore means iron-bearing material where the primary product is iron
metal. new text begin The commissioner shall not issue or grant any new leases to prospect for, mine, or
remove silica sand from any lands owned by the state, including, but not limited to, school
trust lands, tax-forfeited lands, acquired lands, and the beds of navigable waters.
new text end

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.

new text begin [116Y.01] APPLICABILITY.
new text end

new text begin This chapter applies to the following units of local government:
new text end

new text begin (1) the counties of Blue Earth, Chisago, Dakota, Dodge, Fillmore, Goodhue,
Houston, LeSueur, Nicollet, Olmsted, Rice, Scott, Wabasha, Washington, and Winona;
new text end

new text begin (2) the largest home rule charter or statutory city in each county listed in clause
(1); and
new text end

new text begin (3) a city or town in a county listed in clause (1) that has a pending or approved
permit for silica sand mining or processing, or for a transfer facility as of March 1, 2013.
new text end

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.

new text begin [116Y.02] DEFINITIONS.
new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin (a) "Board" means the Southeastern Minnesota Silica Sand Board.
new text end

new text begin (b) "Extraction site" means a pit, quarry, or deposit containing silica sand and
any contiguous property to the pit, quarry, or deposit that is used by the operator for
stockpiling the silica sand.
new text end

new text begin (c) "Local unit of government" means a county, statutory or home rule charter city,
or town that is within the counties listed in section 116Y.01, clause (1).
new text end

new text begin (d) "Operator" means any person engaged in the business of removing silica sand
from the surface or subsurface of the soil, for the purpose of sale, either directly or
indirectly, through the use of the sand in a marketable product or service.
new text end

new text begin (e) "Silica sand" means naturally occurring high quartz level sand used, among
several industrial uses, as a proppant for the hydraulic fracturing of shale for oil and gas
production. The term silica sand includes raw, washed, or otherwise processed silica
sand. Silica sand does not include common rock, stone, aggregate, gravel, and sand with
a low quartz level.
new text end

new text begin (f) "Silica sand mining" means the excavation and mining of silica sand by any
process, including digging, excavating, mining, drilling, blasting, tunneling, dredging,
stripping, or shafting.
new text end

new text begin (g) "Silica sand processing" means the washing, cleaning, screening, crushing,
filtering, sorting, processing, stockpiling, and storing of silica sand, either at the mining
site or at any other site.
new text end

new text begin (h) "Silica sand transporting" means the hauling and transporting of silica sand,
by any carrier: (1) from the mining site to a processing or transfer site; or (2) from a
processing or storage site to a rail, barge, or transfer site for transporting to destinations.
new text end

new text begin (i) "Transfer facility" means a facility for transporting silica sand by rail, barge, or
other means of transportation to destinations.
new text end

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.

new text begin [116Y.03] SOUTHEASTERN MINNESOTA SILICA SAND BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The Southeastern Minnesota Silica Sand Board
may be established by the local units of government listed in section 116Y.01, pursuant to
section 471.59, and is established as a permanent board with authority to develop a model
ordinance designed to protect and enhance southeastern Minnesota from the negative
effects of silica sand mining, transportation, and processing.
new text end

new text begin (b) The chair of the Environmental Quality Board shall assist interested local units of
governments listed in section 116Y.01, in creating a joint powers agreement, as required
by section 471.59. The chair of the Environmental Quality Board shall contact all local
units of government listed in section 116Y.01, by July 1, 2013, to determine if the local
unit of government is interested in joining the board. By September 1, 2013, the chair
of the Environmental Quality Board must convene a meeting of interested local units of
government to begin drafting the joint powers agreement.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The county board of each participating county shall
appoint one of its members to serve on the board. The city council of the largest home rule
charter or statutory city that is participating in the board shall appoint one of its members
to serve on the board. The city council or town board of a city or town with a pending or
approved permit for silica sand mining or processing as of March 1, 2013, may appoint
one of its members to serve on the board.
new text end

new text begin (b) The governing body making an appointment pursuant to this section may
designate another member of the governing body or a county, city, or town officer to act as
an alternate for the member appointed by that governing body.
new text end

new text begin (c) Members of the technical advisory team, created in section 116Y.035, shall be ex
officio, nonvoting members of the board. These members shall serve without term limit
and serve at the pleasure of the appointing entity.
new text end

new text begin Subd. 3. new text end

new text begin Officers. new text end

new text begin (a) The board shall annually appoint from among its members a
chair, vice-chair, and secretary-treasurer who shall serve for concurrent one-year terms.
new text end

new text begin (b) The chair shall preside over all meetings of the board.
new text end

new text begin (c) The vice-chair shall preside over the meetings of the board in the absence of
the chair.
new text end

new text begin (d) The secretary-treasurer or the designee of the secretary-treasurer shall keep a
record of all proceedings of the board. The secretary-treasurer shall provide for the proper
receipt and disbursement of funds.
new text end

new text begin Subd. 4. new text end

new text begin Terms; vacancies. new text end

new text begin (a) The terms of board members are two years, starting
on March 1 of each odd-numbered year. Members appointed to the board to start a term
on any other date shall serve until March 1 of the next odd-numbered year.
new text end

new text begin (b) Vacancies on the board shall be filled for the remainder of the term and shall be
appointed by the governing body that made the original appointment. A vacancy occurs
when a member no longer serves on the governing body that appointed the member.
new text end

new text begin Subd. 5. new text end

new text begin Meeting law quorum. new text end

new text begin (a) Meetings of the board and advisory committees
created by the board are subject to chapter 13D.
new text end

new text begin (b) A majority of all members of the board shall constitute a quorum and a majority
vote of all members shall be required for actions taken by the board.
new text end

new text begin new text end

new text begin Subd. 6. new text end

new text begin Staff and contracts. new text end

new text begin The board may employ staff and contract for goods
and services as necessary to implement this chapter. Contracts are subject to the statutory
procedures and restrictions applicable to local unit of government contracts.
new text end

new text begin Subd. 7. new text end

new text begin Funding. new text end

new text begin The board shall annually submit to each member county for the
county's approval an estimate of the funds the board will need from that county in the
next fiscal year to prepare the model ordinance under section 116Y.04 and otherwise
carry out the duties imposed upon it by this chapter. Each member county shall furnish
the necessary funds to the board. The board may apply for, receive, and disburse federal,
state, and other grants and donations.
new text end

new text begin Subd. 8. new text end

new text begin Committees. new text end

new text begin (a) The board shall appoint an advisory committee, to advise
the board on matters related to preparation of the model ordinance. The membership of the
advisory committee must represent a broad geographical area and diverse public interests,
including equal representation from concerned citizens, local units of government, and
the sand mining industry.
new text end

new text begin (b) The board may establish other committees or subcommittees as necessary to
assist the board in understanding and addressing region-specific issues.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [116Y.035] TECHNICAL ADVISORY TEAM.
new text end

new text begin (a) The board shall initiate and maintain contacts with governmental agencies
as necessary to properly prepare the model ordinance under section 116Y.04 and may
negotiate cooperative management agreements. The board shall establish a technical
advisory team with appropriate state agency staff from the Departments of Natural
Resources, Health, and Transportation, and the Pollution Control Agency. The team shall
advise the board on developing the model ordinance described in section 116Y.04.
new text end

new text begin (b) The technical advisory team shall serve as a resource to all local units of
government in counties listed in section 116Y.01, clause (1), regardless of whether the
local unit of government is a member of the board.
new text end

new text begin (c) Once established, the technical advisory team shall continue to serve as a
resource as provided in paragraph (b), even if the board is terminated. In the event that
the board is dissolved, members of the team shall agree on policies and procedures to
continue its service.
new text end

Sec. 6.

new text begin [116Y.04] MODEL ORDINANCE DEVELOPMENT AND ADOPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Development and adoption. new text end

new text begin The model ordinance shall be
developed by the board as provided in this section. The board may develop more than
one model ordinance to address geographic region-specific issues. If more than one
model ordinance is developed based on geographic region, the board must specify which
ordinance applies to each area. For purposes of this chapter, references to the model
ordinance shall refer to the model ordinance developed for the specific geographic region.
new text end

new text begin Subd. 2. new text end

new text begin Model ordinance provides minimum standards. new text end

new text begin The standards set forth
in the model ordinance are the minimum standards that may be adopted by the board
and by the local units of government for the protection and enhancement of the natural,
scientific, historical, recreational, and cultural resources from silica sand mining in
southeastern Minnesota. Silica sand mining, processing, and transport facilities permitted
by a local unit of government that adopts the model ordinance after the effective date of
this section must be in conformance with the model ordinance. Local units of government
may adopt ordinances that include the minimum standards in the model ordinance. Local
units of government may enact ordinances that are stricter than the minimum standard.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

new text begin [116Y.05] RESPONSIBILITIES OF STATE AGENCIES.
new text end

new text begin Within jurisdictions that have adopted a model ordinance pursuant to section
116Y.04, land owned by the state and political subdivisions is subject to the ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8. new text begin GENERIC ENVIRONMENTAL IMPACT STATEMENT; SILICA SAND
MINING, TRANSPORTING, AND FACILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Generic environmental impact statement required. new text end

new text begin By May 1,
2014, the Environmental Quality Board shall complete a generic environmental impact
statement on silica sand mining, transporting, and related facilities. Except as provided
in subdivision 2, the generic environmental impact statement shall be conducted under
rules of the Environmental Quality Board.
new text end

new text begin Subd. 2. new text end

new text begin Scoping. new text end

new text begin (a) Notwithstanding the environmental review rules of the
Environmental Quality Board, the scope of the generic environmental impact statement
required in subdivision 1 shall be the impact of silica sand mining, transporting,
processing, and transfer facilities on:
new text end

new text begin (1) water resources, including but not limited to surface water and groundwater
quantity and quality;
new text end

new text begin (2) other natural resources, including but not limited to protected forest lands, rivers,
streams, and fish hatcheries and habitat;
new text end

new text begin (3) air quality from air particulate and other emissions;
new text end

new text begin (4) existing agricultural, recreational, tourist, and other existing businesses; and
new text end

new text begin (5) state and local roads and bridges.
new text end

new text begin (b) In addition to the items listed under paragraph (a), the generic environmental
impact statement shall address:
new text end

new text begin (1) guidance for local units of government in addressing phased and connected
actions, as defined in rules of the Environmental Quality Board, for silica sand mining,
processing, and transfer facilities; and
new text end

new text begin (2) necessary law and rule changes to address the issues identified in paragraph (a).
new text end

new text begin By March 1, 2015, state agencies shall adopt the rule changes identified in clause (2).
new text end

new text begin (c) By June 1, 2013, the Environmental Quality Board shall select the agencies and
consultants for the preparation of the generic environmental impact statement.
new text end

new text begin Subd. 3. new text end

new text begin State and local permits. new text end

new text begin All state and local permits issued after the
effective date of this section shall be modified to be consistent with or more restrictive
than the conclusions of the generic environmental impact statement.
new text end

new text begin Subd. 4. new text end

new text begin Moratorium. new text end

new text begin Until March 1, 2014, the state, a local unit of government,
or political subdivision of the state shall not permit a new or expanded silica sand mining,
processing, or transfer facility as defined in Minnesota Statutes, section 116Y.02. The
purpose of the moratorium is to provide sufficient time for the designated state agencies to
study and determine the impacts of silica sand mining, processing, and transportation, and
to adopt the necessary law and rule changes in subdivision 2, paragraph (b), clause (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 subdivision 4 applies retroactively to applications received on March 1, 2013, and
thereafter.
new text end

Sec. 9. new text begin INTERIM ORDINANCE EXTENSION OR RENEWAL.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 394.34 and 462.355, subdivision 4,
until March 1, 2015, a local unit of government may extend interim ordinances or renew
an expired ordinance prohibiting new or expanded silica sand mining, processing, or
transfer facilities, as defined in Minnesota Statutes, section 116Y.02.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively to March 1, 2013.
new text end

Sec. 10. new text begin TEMPORARY ENVIRONMENTAL REVIEW REQUIREMENT;
SILICA SAND.
new text end

new text begin Until March 1, 2015, the Environmental Quality Board may reject the decision of
a responsible governmental unit and require further deliberation when a decision on the
need for an environmental impact statement under Minnesota Statutes, section 116D.04,
subdivision 2a, paragraph (b), related to silica sand mining or processing does not follow
requirements in the rules of the board. The board must make its decision and findings
under this section within 30 days after the end of the comment period.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin ENVIRONMENTAL REVIEW RULES.
new text end

new text begin By August 1, 2013, the Environmental Quality Board shall amend its rules for
environmental review, adopted under Minnesota Statutes, chapter 116D, for silica sand
mining and processing to take into account the increased activity in the state and concerns
over the size of specific operations. The board may use the good cause exemption under
Minnesota Statutes, section 14.388, subdivision 1, clause (1).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12. new text begin APPROPRIATION; GEIS ON SILICA SAND MINING,
TRANSPORTING, AND FACILITIES.
new text end

new text begin $....... is appropriated in fiscal year 2013 from the general fund to the Pollution
Control Agency for the Environmental Quality Board to conduct the generic environmental
impact statement required under section 8. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

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