SF 2521

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/07/2023 07:52am

A bill for an act
relating to environment; clarifying that certain fee increases require legislative
approval; modifying effluent limitation requirements; modifying requirements for
Pollution Control Agency permitting efficiency reports; modifying procedure for
filing petition seeking environmental assessment worksheet; requiring the Pollution
Control Agency to conduct an analysis of funding alternatives for its air permit
program and to seek approval of certain modifications to state implementation
plan; requiring reports; appropriating money; amending Minnesota Statutes 2022,
sections 115.03, subdivision 1; 115.455; 115.77, subdivision 1; 115.84, subdivisions
2, 3; 116.03, subdivision 2b; 116.07, subdivision 4d; 116D.04, subdivision 2a.

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

Section 1.

Minnesota Statutes 2022, section 115.03, subdivision 1, is amended to read:

Subdivision 1.

Generally.

new text begin (a) new text end The agency is hereby given and charged with the following
powers and duties:

deleted text begin (a) deleted text end new text begin (1) new text end to administer and enforce all laws relating to the pollution of any of the waters
of the state;

deleted text begin (b) deleted text end new text begin (2) new text end to investigate the extent, character, and effect of the pollution of the waters of
this state and to gather data and information necessary or desirable in the administration or
enforcement of pollution laws, and to make such classification of the waters of the state as
it may deem advisable;

deleted text begin (c) deleted text end new text begin (3) new text end to establish and alter such reasonable pollution standards for any waters of the
state in relation to the public use to which they are or may be put as it deleted text begin shall deleted text end new text begin must new text end deem
necessary for the purposes of this chapter and, with respect to the pollution of waters of the
state, chapter 116;

deleted text begin (d) deleted text end new text begin (4) new text end to encourage waste treatment, including advanced waste treatment, instead of
stream low-flow augmentation for dilution purposes to control and prevent pollution;

deleted text begin (e) deleted text end new text begin (5) new text end to adopt, issue, reissue, modify, deny, or revoke, enter into or enforce reasonable
orders, permits, variances, standards, rules, schedules of compliance, and stipulation
agreements, under such conditions as it may prescribe, in order to prevent, control or abate
water pollution, or for the installation or operation of disposal systems or parts thereof, or
for other equipment and facilities:

deleted text begin (1) deleted text end new text begin (i) new text end requiring the discontinuance of the discharge of sewage, industrial waste or other
wastes into any waters of the state resulting in pollution in excess of the applicable pollution
standard established under this chapter;

deleted text begin (2) deleted text end new text begin (ii) new text end prohibiting or directing the abatement of any discharge of sewage, industrial
waste, or other wastes, into any waters of the state or the deposit thereof or the discharge
into any municipal disposal system where the same is likely to get into any waters of the
state in violation of this chapter and, with respect to the pollution of waters of the state,
chapter 116, or standards or rules promulgated or permits issued pursuant thereto, and
specifying the schedule of compliance within which such prohibition or abatement must be
accomplished;

deleted text begin (3) deleted text end new text begin (iii) new text end prohibiting the storage of any liquid or solid substance or other pollutant in a
manner which does not reasonably assure proper retention against entry into any waters of
the state that would be likely to pollute any waters of the state;

deleted text begin (4) deleted text end new text begin (iv) new text end requiring the construction, installation, maintenance, and operation by any person
of any disposal system or any part thereof, or other equipment and facilities, or the
reconstruction, alteration, or enlargement of its existing disposal system or any part thereof,
or the adoption of other remedial measures to prevent, control or abate any discharge or
deposit of sewage, industrial waste or other wastes by any person;

deleted text begin (5) deleted text end new text begin (v) new text end establishing, and from time to time revising, standards of performance for new
sources taking into consideration, among other things, classes, types, sizes, and categories
of sources, processes, pollution control technology, cost of achieving such effluent reduction,
and any nonwater quality environmental impact and energy requirements. Said standards
of performance for new sources deleted text begin shall deleted text end new text begin must new text end encompass those standards for the control of the
discharge of pollutants which reflect the greatest degree of effluent reduction which the
agency determines to be achievable through application of the best available demonstrated
control technology, processes, operating methods, or other alternatives, including, where
practicable, a standard permitting no discharge of pollutants. New sources deleted text begin shall deleted text end new text begin must new text end
encompass buildings, structures, facilities, or installations from which there is or may be
the discharge of pollutants, the construction of which is commenced after the publication
by the agency of proposed rules prescribing a standard of performance which will be
applicable to such source. Notwithstanding any other provision of the law of this state, any
point source the construction of which is commenced after May 20, 1973, and which is so
constructed as to meet all applicable standards of performance for new sources deleted text begin shall deleted text end new text begin must new text end ,
consistent with and subject to the provisions of section 306(d) of the Amendments of 1972
to the Federal Water Pollution Control Act, not be subject to any more stringent standard
of performance for new sources during a ten-year period beginning on the date of completion
of such construction or during the period of depreciation or amortization of such facility
for the purposes of section 167 or 169, or both, of the Federal Internal Revenue Code of
1954, whichever period ends first. Construction deleted text begin shall deleted text end new text begin must new text end encompass any placement,
assembly, or installation of facilities or equipment, including contractual obligations to
purchase such facilities or equipment, at the premises where such equipment will be used,
including preparation work at such premises;

deleted text begin (6) deleted text end new text begin (vi) new text end establishing and revising pretreatment standards to prevent or abate the discharge
of any pollutant into any publicly owned disposal system, which pollutant interferes with,
passes through, or otherwise is incompatible with such disposal system;

deleted text begin (7) deleted text end new text begin (vii) new text end requiring the owner or operator of any disposal system or any point source to
establish and maintain such records, make such reports, install, use, and maintain such
monitoring equipment or methods, including where appropriate biological monitoring
methods, sample such effluents in accordance with such methods, at such locations, at such
intervals, and in such a manner as the agency deleted text begin shall deleted text end new text begin must new text end prescribe, and providing such other
information as the agency may reasonably require;

deleted text begin (8) deleted text end new text begin (viii) new text end notwithstanding any other provision of this chapter, and with respect to the
pollution of waters of the state, chapter 116, requiring the achievement of more stringent
limitations than otherwise imposed by effluent limitations in order to meet any applicable
water quality standard by establishing new effluent limitations, based upon section 115.01,
subdivision 13, clause (b), including alternative effluent control strategies for any point
source or group of point sources to insure the integrity of water quality classifications,
whenever the agency determines that discharges of pollutants from such point source or
sources, with the application of effluent limitations required to comply with any standard
of best available technology, would interfere with the attainment or maintenance of the
water quality classification in a specific portion of the waters of the state. Prior to
establishment of any such effluent limitation, the agency deleted text begin shall deleted text end new text begin must new text end hold a public hearing
to determine the relationship of the economic and social costs of achieving such limitation
or limitations, including any economic or social dislocation in the affected community or
communities, to the social and economic benefits to be obtained and to determine whether
or not such effluent limitation can be implemented with available technology or other
alternative control strategies. If a person affected by such limitation demonstrates at such
hearing that, whether or not such technology or other alternative control strategies are
available, there is no reasonable relationship between the economic and social costs and
the benefits to be obtained, such limitation deleted text begin shall deleted text end new text begin must new text end not become effective and deleted text begin shall deleted text end new text begin must new text end
be adjusted as it applies to such person;

deleted text begin (9) deleted text end new text begin (ix) new text end modifying, in its discretion, any requirement or limitation based upon best
available technology with respect to any point source for which a permit application is filed
after July 1, 1977, upon a showing by the owner or operator of such point source satisfactory
to the agency that such modified requirements will represent the maximum use of technology
within the economic capability of the owner or operator and will result in reasonable further
progress toward the elimination of the discharge of pollutants; and

deleted text begin (10) deleted text end new text begin (x) new text end requiring that applicants for wastewater discharge permits evaluate in their
applications the potential reuses of the discharged wastewater;

deleted text begin (f) deleted text end new text begin (6) new text end to require to be submitted and to approve plans and specifications for disposal
systems or point sources, or any part thereof and to inspect the construction thereof for
compliance with the approved plans and specifications thereof;

deleted text begin (g) deleted text end new text begin (7) new text end to prescribe and alter rules, not inconsistent with law, for the conduct of the
agency and other matters within the scope of the powers granted to and imposed upon it by
this chapter and, with respect to pollution of waters of the state, in chapter 116, provided
that every rule affecting any other department or agency of the state or any person other
than a member or employee of the agency deleted text begin shall deleted text end new text begin must new text end be filed with the secretary of state;

deleted text begin (h) deleted text end new text begin (8) new text end to conduct such investigations, issue such notices, public and otherwise, and hold
such hearings as are necessary or which it may deem advisable for the discharge of its duties
under this chapter and, with respect to the pollution of waters of the state, under chapter
116, including, but not limited to, the issuance of permits, and to authorize any member,
employee, or agent appointed by it to conduct such investigations or, issue such notices and
hold such hearings;

deleted text begin (i) deleted text end new text begin (9) new text end for the purpose of water pollution control planning by the state and pursuant to
the Federal Water Pollution Control Act, as amended, to establish and revise planning areas,
adopt plans and programs and continuing planning processes, including, but not limited to,
basin plans and areawide waste treatment management plans, and to provide for the
implementation of any such plans by means of, including, but not limited to, standards, plan
elements, procedures for revision, intergovernmental cooperation, residual treatment process
waste controls, and needs inventory and ranking for construction of disposal systems;

deleted text begin (j) deleted text end new text begin (10) new text end to train water pollution control personnel deleted text begin , deleted text end and charge deleted text begin such deleted text end fees deleted text begin therefor as are deleted text end new text begin
for the training as new text end necessary to cover the agency's costs. new text begin The fees under this clause are
subject to legislative approval under section 16A.1283. new text end All such fees received deleted text begin shall deleted text end new text begin must new text end
be paid into the state treasury and credited to the Pollution Control Agency training account;

deleted text begin (k) deleted text end new text begin (11) new text end to impose as additional conditions in permits to publicly owned disposal systems
appropriate measures to insure compliance by industrial and other users with any pretreatment
standard, including, but not limited to, those related to toxic pollutants, and any system of
user charges ratably as is hereby required under state law or said Federal Water Pollution
Control Act, as amended, or any regulations or guidelines promulgated thereunder;

deleted text begin (l) deleted text end new text begin (12) new text end to set a period not to exceed five years for the duration of any national pollutant
discharge elimination system permit or not to exceed ten years for any permit issued as a
state disposal system permit only;

deleted text begin (m) deleted text end new text begin (13) new text end to require each governmental subdivision identified as a permittee for a
wastewater treatment works to evaluate in every odd-numbered year the condition of its
existing system and identify future capital improvements that will be needed to attain or
maintain compliance with a national pollutant discharge elimination system or state disposal
system permit; and

deleted text begin (n) deleted text end new text begin (14) new text end to train subsurface sewage treatment system personnel, including persons who
design, construct, install, inspect, service, and operate subsurface sewage treatment systems,
and charge fees new text begin for the training new text end as necessary to pay the agency's costs. new text begin The fees under this
clause are subject to legislative approval under section 16A.1283. new text end All fees received must
be paid into the state treasury and credited to the agency's training account. Money in the
account is appropriated to the agency to pay expenses related to training.

new text begin (b) new text end The information required in new text begin paragraph (a), new text end clause deleted text begin (m) deleted text end new text begin (13), new text end must be submitted in
every odd-numbered year to the commissioner on a form provided by the commissioner.
The commissioner deleted text begin shall deleted text end new text begin must new text end provide technical assistance if requested by the governmental
subdivision.

new text begin (c) new text end The powers and duties given the agency in this subdivision also apply to permits
issued under chapter 114C.

Sec. 2.

Minnesota Statutes 2022, section 115.455, is amended to read:

115.455 EFFLUENT LIMITATIONS; COMPLIANCE.

To the extent allowable under federal law, for a municipality that constructs a publicly
owned treatment works new text begin or for an industrial national pollutant discharge elimination system
and state disposal system permit holder that constructs a treatment works new text end to comply with a
new or modified effluent limitation, compliance with any new or modified effluent limitation
adopted after construction begins that would require additional capital investment is required
no sooner than 16 years after the date the facility begins operating.

Sec. 3.

Minnesota Statutes 2022, section 115.77, subdivision 1, is amended to read:

Subdivision 1.

Fees.

The agency deleted text begin shall deleted text end new text begin must new text end collect fees in amounts necessary, but no
greater than the amounts necessary, to cover the reasonable costs of reviewing applications
and issuing certifications. new text begin The fees under this subdivision are subject to legislative approval
under section 16A.1283.
new text end

Sec. 4.

Minnesota Statutes 2022, section 115.84, subdivision 2, is amended to read:

Subd. 2.

Rules.

The agency may adopt rules to govern certification of laboratories
according to this section. deleted text begin Notwithstanding section 16A.1283, the agency may adopt rules
establishing fees.
deleted text end

Sec. 5.

Minnesota Statutes 2022, section 115.84, subdivision 3, is amended to read:

Subd. 3.

Fees.

(a) Until the agency adopts a rule establishing fees for certification, the
agency deleted text begin shall deleted text end new text begin must new text end collect fees from laboratories registering with the agency, but not
accredited by the commissioner of health under sections 144.97 to 144.99, in amounts
necessary to cover the reasonable costs of the certification program, including reviewing
applications, issuing certifications, and conducting audits and compliance assistance. new text begin The
fees under this paragraph are subject to legislative approval under section 16A.1283.
new text end

(b) Fees under this section must be based on the number, type, and complexity of
analytical methods that laboratories are certified to perform.

(c) Revenue from fees charged by the agency for certification deleted text begin shall deleted text end new text begin must new text end be credited to
the environmental fund.

Sec. 6.

Minnesota Statutes 2022, 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.

(b) The commissioner deleted text begin shall deleted text end new text begin must new text end prepare deleted text begin an annual deleted text end new text begin semiannual new text end permitting efficiency
deleted text begin report deleted text end new text begin reports new text end that deleted text begin includes deleted text end new text begin include new text end 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 deleted text begin report is deleted text end new text begin reports are new text end due new text begin on February 1 and
new text end August 1 each year. For permit applications that have not met the goal, deleted text begin the deleted text end new text begin each new text end report must
state the reasons for not meeting the goal. In stating the reasons for not meeting the goal,
the commissioner deleted text begin shall deleted text end new text begin must new text end separately identify delays caused by the responsiveness of the
proposer, deleted text begin lack of staff, deleted text end scientific or technical disagreements, or the level of public
engagement. deleted text begin The deleted text end new text begin Each new text end report must specify the number of days from initial submission of
the application to the day of determination that the application is complete. deleted text begin The deleted text end new text begin Each new text end report
must aggregate the data for the deleted text begin year deleted text end new text begin reporting period new text end and assess whether program or system
changes are necessary to achieve the goal new text begin . Whenever a report required by this subdivision
states the number of permits completed within a particular period, the report must,
immediately after the number and in parentheses, state the percentage of total applications
received for that permit category that the number represents. Whenever a report required
by this subdivision states the number of permits completed within a particular period, the
report must separately state completion data for industrial and municipal permits new text end . The deleted text begin report deleted text end new text begin
reports new text end 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.

(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, whether the application is complete or incomplete. If the commissioner determines
that an application is incomplete, the notice to the applicant must enumerate all deficiencies,
citing specific provisions of the applicable rules and statutes, and advise the applicant on
how the deficiencies can be remedied. If the commissioner determines that the application
is complete, the notice 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 deleted text begin shall deleted text end new text begin must new text end 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. 7.

Minnesota Statutes 2022, 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 deleted text begin shall deleted text end new text begin must new text end 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 deleted text begin a period of deleted text end up to two years to cover the reasonable costs
of implementing and enforcing the conditions of a permit under the rules of the agency.
new text begin Water fees under this paragraph are subject to legislative approval under section 16A.1283.
new text end Any money collected under this paragraph deleted text begin shall deleted text end new text begin must new text end be deposited in the environmental
fund.

(b) Notwithstanding paragraph (a), the agency deleted text begin shall deleted text end new text begin must new text end 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 deleted text begin shall deleted text end new text begin must new text end 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 deleted text begin shall deleted text end new text begin must new text end 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) deleted text begin shall deleted text end new text begin must new text end 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 deleted text begin shall be deleted text end new text begin is new text end a
surcharge on existing fees. The commissioner may not collect the surcharge after the grant
funds become unavailable. In addition, the commissioner deleted text begin shall deleted text end new text begin must new text end 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 deleted text begin shall deleted text end new text begin must new text end
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 new text begin , new text end 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 deleted text begin shall deleted text end new text begin must new text end 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 offer
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. When the agency determines
that it needs additional resources to develop the permit application in an expedited manner deleted text begin , deleted text end
and that expediting the development is consistent with permitting program priorities, the
agency may accept the reimbursement. The commissioner must give the applicant an estimate
of 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. The applicant and the commissioner must enter into a written agreement detailing
the estimated costs for the expedited permit decision-making process to be incurred by the
agency. The agreement must also identify staff anticipated to be assigned to the project.
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 deleted text begin shall deleted text end new text begin
must new text end precede and not be contingent upon issuance of a permit; deleted text begin shall deleted text end new text begin must new text end 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 deleted text begin shall deleted text end new text begin must new text end not affect final decisions regarding environmental review.

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

Sec. 8.

Minnesota Statutes 2022, 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 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. 9. new text begin ANALYSIS OF FUNDING ALTERNATIVES FOR AIR PERMIT
PROGRAM.
new text end

new text begin $....... in fiscal year 2024 is appropriated from the ..... fund to the commissioner of the
Pollution Control Agency to conduct an analysis of how states within Environmental
Protection Agency Region 5 fund their air permitting programs. By January 15, 2024, the
commissioner must report the results of the analysis to the chairs and ranking minority
members of the house of representatives and senate committees and divisions with jurisdiction
over environment and natural resources. The report must include:
new text end

new text begin (1) identification of all sources of funding for Minnesota's air permitting program and
those of each other state within Environmental Protection Agency Region 5;
new text end

new text begin (2) a summary of how the funding sources identified under clause (1) have changed
during the last 20 years;
new text end

new text begin (3) an analysis of the costs that Minnesota's air permitting program and those of each
state within Environmental Protection Area Region 5 impose on permittees;
new text end

new text begin (4) a summary of how the costs identified under clause (3) have changed during the last
20 years and how they relate to total permittee emissions;
new text end

new text begin (5) identification of potential alternatives to Minnesota's current practice of increasing
the per-ton air emission fee as emissions are reduced; and
new text end

new text begin (6) an assessment of what policy changes, legal changes, and funding changes would
be required to successfully implement a program that did not increase permittee costs as air
emissions are reduced.
new text end

Sec. 10. new text begin STATE IMPLEMENTATION PLAN REVISIONS.
new text end

new text begin (a) 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 so that under the revised plan, the Pollution Control Agency is
prohibited from applying a national or state ambient air quality standard in a permit issued
solely to authorize operations to continue at an existing facility with unmodified emissions
levels. Nothing in this section must be construed to require the commissioner to apply for
a revision that would prohibit the agency from applying a national or state ambient air
quality standard in a permit that authorizes an increase in emissions due to construction of
a new facility or in a permit that authorizes changes to existing facilities that result in a
significant net emissions increase of a regulated NSR pollutant, as defined in Code of Federal
Regulations, title 40, section 52.21(b)(50).
new text end

new text begin (b) The commissioner of the Pollution Control Agency must report quarterly to the chairs
and ranking minority members of the house of representatives and senate committees and
divisions with jurisdiction over environment and natural resources policy on the status of
efforts to implement paragraph (a) until the revisions required by paragraph (a) have been
either approved or denied.
new text end