1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/07/2013 11:30am
A bill for an act
relating to environment; allowing the creation of a joint powers board related to
silica sand mining in southeastern Minnesota; providing for silica sand extraction
taxing authority; 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; providing criminal
penalties; appropriating money; amending Minnesota Statutes 2012, section
93.25, subdivision 1; proposing coding for new law in Minnesota Statutes,
chapter 298; proposing coding for new law as Minnesota Statutes, chapter 116Y.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2012, section 93.25, subdivision 1, is amended to read:
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.
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This section is effective the day following final enactment.
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This chapter applies to the counties of Blue Earth, Dakota, Dodge, Faribault,
Fillmore, Goodhue, Houston, LeSueur, Mower, Nicollet, Olmsted, Rice, Scott, Steele,
Wabasha, Waseca, Washington, and Winona.
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This section is effective the day following final enactment.
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The definitions in this section apply to this chapter.
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(a) "Board" means the Southeastern Minnesota Silica Sand Board.
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(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.
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(c) "Importer" means any person who buys silica sand excavated from an area where
the tax under section 116Y.06 is not imposed, or another state and causes the silica sand
to be imported into a local unit of government in this state that imposes a tax on silica
sand under section 116Y.06.
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(d) "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.
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(e) "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.
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(f) "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.
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(g) "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.
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(h) "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.
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(i) "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.
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(j) "Transfer facility" means a facility for transporting silica sand by rail, barge, or
other means of transportation to destinations.
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This section is effective the day following final enactment.
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The Southeastern Minnesota Silica Sand Board may
be established by counties listed in section 116Y.01, pursuant to section 471.59, and
is established as a permanent board with authority to prepare, adopt, and implement a
comprehensive land use plan designed to protect and enhance southeastern Minnesota
from the negative effects of silica sand mining, transportation, and processing.
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(a) The governing body of each county shall appoint one of
its members to serve on the board.
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(b) The terms of board members are two years from the date of appointment.
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(c) Vacancies on the board shall be filled for the reminder of the term by the
governing body that made the original appointment.
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(d) The governing body of a county may designate another member of the governing
body or a county officer to act as an alternate for the member appointed by that county.
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(e) Members of the scientific advisory team, created in subdivision 8, shall be ex
officio, nonvoting members of the board.
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(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.
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(b) The chair shall preside over all meetings of the board and may call special
meetings at reasonable times and upon adequate notice when necessary.
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(c) The vice-chair shall preside over the meetings of the board in the absence of
the chair.
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(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.
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(a) The regular meetings of the board shall be held at
times and places prescribed by the board.
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(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.
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(c) Meetings of the board and advisory committees created by the board are subject
to chapter 13D.
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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.
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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 and implement the plan 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.
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The board shall appoint an advisory committee,
representing a broad geographical area and diverse public interests, including equal
representation from concerned citizens, local units of government, and the sand mining
industry.
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The board shall initiate and maintain
contacts with governmental agencies as necessary to properly prepare the plan under
section 116Y.04 and may negotiate cooperative management agreements. The board
shall establish a scientific 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 and implementing the plan
developed in section 116Y.04.
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This section is effective the day following final enactment.
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The plan shall be
developed and implemented by the board as provided in this section.
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The standards set forth in the
plan 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 plan after the effective date of this section must be in
conformance with the plan.
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The board shall develop and establish a schedule for
implementation and common administration of the plan by the local units of government.
The schedule shall be binding upon the local units of government that adopt the plan
subject to approval by the governing bodies of the respective local units of government.
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The local units
of government that adopt the plan shall adopt and amend existing land use ordinances to
be consistent with the plan. Local units of government may adopt ordinances that include
the minimum standards in the plan. Local units of government may enact ordinances that
are stricter than the minimum standards.
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This section is effective the day following final enactment.
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Within jurisdictions subject to the plan, all local and special governmental units,
councils, commissions, boards, and districts and all state agencies and departments must
exercise their powers so as to further the purposes of this chapter and the plan. Land
owned by the state, its agencies, and political subdivisions shall be administered in
accordance with the plan.
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This section is effective the day following final enactment.
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Only local units of government that have adopted
at least the minimum standards established in section 116Y.04 may impose the tax
authorized under this section. The tax imposed under this section is in lieu of the taxing
authority granted under section 298.75 for silica sand production. When a county imposes
a production tax under this section, other local units of government shall not apply a
production tax under this section for the same silica sand production.
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(a) A local unit of government that imposes the silica sand
production tax shall impose upon every operator a production tax of ... cents per cubic
yard or ... cents per ton of silica sand excavated in the local unit of government, except
that the local unit of government board may decide not to impose this tax if it determines
that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards
of silica sand from that local unit of government. The tax shall not be imposed on silica
sand excavated in the local unit of government until the silica sand is transported from the
extraction site or sold, whichever occurs first. When silica sand is stored in a stockpile
within the state and a public highway, road, or street is not used for transporting the
silica sand, the tax shall not be imposed until the silica sand is sold, transported from the
stockpile site, or used from the stockpile, whichever occurs first.
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(b) A local unit of government that imposes the silica sand production tax under
paragraph (a) shall impose upon every importer a production tax of ... cents per cubic yard
or ... cents per ton of silica sand imported into the local unit of government. The tax
shall be imposed when the silica sand is imported from the extraction site or sold. When
imported silica sand is stored in a stockpile within the state and a public highway, road, or
street is not used for transporting the silica sand, the tax shall be imposed when the silica
sand is sold, transported from the stockpile site, or used from the stockpile, whichever
occurs first. The tax shall be imposed on an importer when the silica sand is imported into
the local unit of government that imposes the tax.
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(c) If the silica sand is transported directly from the extraction site to a waterway,
railway, or another mode of transportation other than a highway, road, or street, the tax
imposed by this section shall be apportioned equally between the local unit of government
where the silica sand is extracted and the local unit of government to which the silica sand is
originally transported. If that destination is not located in Minnesota, then the local unit of
government where the silica sand was extracted shall receive all of the proceeds of the tax.
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(a) By the 14th day following the last day of each
calendar quarter, every operator or importer shall make and file with the local unit of
government in which the silica sand is removed or imported, a correct report under oath, in
the form and containing information as the local unit of government shall require, relative
to the quantity of silica sand removed or imported during the preceding calendar quarter.
The report shall be accompanied by a remittance of the amount of tax due.
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(b) If any of the proceeds of the tax is to be apportioned as provided in subdivision
2, the operator or importer shall also include on the report any relevant information
concerning the amount of silica sand transported, the tax, and the local unit of government
of destination. The local unit of government shall notify the local unit of government
treasurer of the amount of such tax and the local unit of government to which it is due.
The local unit of government treasurer shall remit the tax to the appropriate local unit
of government within 30 days.
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If the local unit of government has not
received the report by the 15th day after the last day of each calendar quarter from the
operator or importer as required by subdivision 3 or has received an erroneous report, the
local unit of government shall estimate the amount of tax due and notify the operator or
importer by registered mail of the amount of tax so estimated within the next 14 days. An
operator or importer may, within 30 days from the date of mailing the notice, and upon
payment of the amount of tax determined to be due, file in the office of the local unit of
government a written statement of objections to the amount of taxes determined to be due.
The statement of objections shall be deemed to be a petition within the meaning of chapter
278, and shall be governed by sections 278.02 to 278.13.
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Failure to file the report and submit
payment shall result in a penalty of $5 for each of the first 30 days, beginning on the 15th
day after the last day of each calendar quarter, for which the report and payment are due
and no statement of objection has been filed as provided in subdivision 4, and a penalty
of $10 for each subsequent day shall be assessed against the operator or importer who is
required to file the report. The penalties imposed by this subdivision shall be collected as
part of the tax and credited to the local unit of government revenue fund. If neither the
report nor a statement of objection has been filed after more than 60 days have elapsed
from the date when the notice was sent, the operator or importer who is required to file the
report is guilty of a misdemeanor.
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(a) It is a misdemeanor for any operator or importer to remove silica sand from a pit,
quarry, or deposit or for any importer to import silica sand, unless all taxes due under this
section for all previous reporting periods have been paid or objections thereto have been
filed pursuant to subdivision 4.
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(b) It is a misdemeanor for the operator or importer who is required to file a report to
file a false report with intent to evade the tax.
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(a) All money collected as taxes under this section
on silica sand shall be deposited in the local unit of government treasury and credited
according to this subdivision.
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(b) The local unit of government may retain an annual administrative fee of up to
five percent of the total taxes collected in any year.
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(c) The balance of the taxes, after any deduction under paragraph (b), shall be
credited as follows:
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(1) ... percent to the local unit of government road and bridge fund for expenditure
for the maintenance, construction, and reconstruction of county, city, and township roads,
highways, streets, and bridges;
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(2) ... percent to the general fund of the local unit of government for environmental
protection and economic development purposes, including tourism; and
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(3) ... percent to a special reserve fund that is hereby established, for expenditure
for the restoration of abandoned pits, quarries, or deposits located within the local unit of
government. If there are no abandoned pits, quarries, or deposits located within the local
unit of government, the portion of the tax allocated under this clause shall be used for any
other unmet reclamation need or for conservation or other environmental needs.
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The local unit of government
or its duly authorized agent may examine records, including computer records, maintained
by an importer or operator. The term "record" includes, but is not limited to, all
accounts of an importer or operator. The local unit of government must have access at
all reasonable times to inspect and copy all business records related to an importer's or
operator's collection, transportation, and disposal of aggregate to the extent necessary to
ensure that all silica sand production taxes required to be paid have been remitted to the
local unit of government. The records must be maintained by the importer or operator
for no less than six years.
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(a) A silica sand production tax of ... cents per cubic
yard or ... cents per ton of silica sand, as defined in section 116Y.02, excavated in the
state is imposed upon every operator, as defined in section 116Y.02. The tax shall not be
imposed on silica sand excavated in the state until the silica sand is transported from the
extraction site or sold, whichever occurs first. When silica sand is stored in a stockpile
within the state and a public highway, road, or street is not used for transporting the
silica sand, the tax shall not be imposed until the silica sand is sold, transported from the
stockpile site, or used from the stockpile, whichever occurs first.
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(b) A silica sand production tax of ... cents per cubic yard or ... cents per ton of silica
sand imported into the state is imposed upon every importer as defined under section
116Y.04. The tax shall be imposed when the silica sand is imported from the extraction
site or sold. When imported silica sand is stored in a stockpile within the state and a
public highway, road, or street is not used for transporting the silica sand, the tax shall be
imposed when the silica sand is sold, transported from the stockpile site, or used from the
stockpile, whichever occurs first. The tax shall be imposed on an importer when the silica
sand is imported into the local unit of government that imposes the tax.
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By the 14th day following the last day of each
calendar quarter, every operator or importer shall make and file with the commissioner
of revenue a correct report under oath, in such form and containing such information as
the local unit of government shall require, relative to the quantity of silica sand removed
or imported during the preceding calendar quarter. The report shall be accompanied
by a remittance of the amount of tax due.
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If the commissioner of revenue has
not received the report by the 15th day after the last day of each calendar quarter from the
operator or importer as required by subdivision 2 or has received an erroneous report, the
commissioner shall estimate the amount of tax due and notify the operator or importer by
registered mail of the amount of tax so estimated within the next 14 days. An operator or
importer may, within 30 days from the date of mailing the notice, and upon payment of the
amount of tax determined to be due, file in the office of the local unit of government a
written statement of objections to the amount of taxes determined to be due. The statement
of objections shall be deemed to be a petition within the meaning of chapter 278, and shall
be governed by sections 278.02 to 278.13.
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Failure to file the report and submit
payment shall result in a penalty of $5 for each of the first 30 days, beginning on the 15th
day after the last day of each calendar quarter, for which the report and payment are due and
no statement of objection has been filed as provided in subdivision 3, and a penalty of $10
for each subsequent day shall be assessed against the operator or importer who is required
to file the report. The penalties imposed by this subdivision shall be collected as part of
the tax and credited to the general fund. If neither the report nor a statement of objection
has been filed after more than 60 days have elapsed from the date when the notice was
sent, the operator or importer who is required to file the report is guilty of a misdemeanor.
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(a) It is a misdemeanor for any operator or importer to remove silica sand from a pit,
quarry, or deposit, or for any importer to import silica sand unless all taxes due under this
section for all previous reporting periods have been paid or objections thereto have been
filed pursuant to subdivision 3.
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(b) It is a misdemeanor for the operator or importer who is required to file a report to
file a false report with intent to evade the tax.
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All money collected as taxes under this section shall
be deposited in the general fund.
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The commissioner of revenue
may examine records, including computer records, maintained by an importer or operator.
The term "record" includes, but is not limited to, all accounts of an importer or operator.
The local unit of government must have access at all reasonable times to inspect and copy
all business records related to an importer's or operator's collection, transportation, and
disposal of aggregate to the extent necessary to ensure that all silica sand production taxes
required to be paid have been remitted to the local unit of government. The records must
be maintained by the importer or operator for no less than six years.
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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.
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(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:
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(1) water resources, including but not limited to surface water and groundwater
quantity and quality;
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(2) other natural resources, including but not limited to protected forest lands, rivers,
streams, and fish hatcheries and habitat;
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(3) air quality from air particulate and other emissions;
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(4) existing agricultural, recreational, tourist, and other existing businesses; and
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(5) state and local roads and bridges.
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(b) In addition to the items listed under paragraph (a), the generic environmental
impact statement shall address:
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(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
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(2) necessary law and rule changes to address the issues identified in paragraph (a).
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By March 1, 2015, state agencies shall adopt the rule changes identified in clause (2).
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(c) By June 1, 2013, the Environmental Quality Board shall select the agencies and
consultants for the preparation of the generic environmental impact statement.
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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.
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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).
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This section is effective the day following final enactment,
and subdivision 4 applies retroactively to applications received on March 1, 2013, and
thereafter.
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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.
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This section is effective retroactively to March 1, 2013.
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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.
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This section is effective the day following final enactment.
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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).
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This section is effective the day following final enactment.
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$....... 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 10. This is a onetime appropriation.
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This section is effective the day following final enactment.
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