HF 186

as introduced - 94th Legislature (2025 - 2026) Posted on 02/26/2025 01:27pm

A bill for an act
relating to transportation; modifying requirements related to highway project
development and highway purposes, including transportation cumulative impacts
analysis, alternative design analysis, position of environmental justice
ombudsperson, and permissible uses of certain highway funds; amending Minnesota
Statutes 2024, sections 116.065, by adding a subdivision; 161.045; 174.02,
subdivision 2a; proposing coding for new law in Minnesota Statutes, chapter 161.

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

Section 1.

Minnesota Statutes 2024, section 116.065, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Coordination. new text end

new text begin In adopting rules under subdivision 6, the commissioner must
consult with the commissioner of transportation and make efforts to conform the rules to
the requirements and policies adopted under section 161.179.
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.

Minnesota Statutes 2024, section 161.045, is amended to read:

161.045 HIGHWAY USER TAX DISTRIBUTION FUND APPROPRIATIONS;
TRUNK HIGHWAY FUND APPROPRIATIONS.

Subdivision 1.

deleted text begin Definition deleted text end new text begin Definitions new text end .

new text begin (a) new text end For purposes of this section, new text begin the following
terms have the meanings given.
new text end

new text begin (b) new text end "Commissioner" means any commissioner of a state agency that either proposes to
spend or spends funds out of the highway user tax distribution fund or the trunk highway
fund.

new text begin (c) "Highway purposes" includes but is not limited to:
new text end

new text begin (1) construction, improvement, maintenance, and operations of a highway;
new text end

new text begin (2) multimodal infrastructure within a highway right-of-way related to any of the
following: (i) transit; (ii) active transportation; and (iii) reduction of greenhouse gas
emissions; and
new text end

new text begin (3) activities directly related to, or necessary to administer or support, the purposes
specified in clauses (1) and (2).
new text end

new text begin (d) "Trunk highway purposes" includes but is not limited to: (1) highway purposes for
the trunk highway system; and (2) trunk highway project offset actions under section 161.178,
subdivision 4.
new text end

Subd. 2.

General expenditure requirements.

A commissioner may expend highway
user tax distribution funds only for highway purposes and may expend trunk highway funds
only for trunk highway purposes.

Subd. 3.

Limitations on spending.

(a) A commissioner must not pay for any of the
following with funds from the highway user tax distribution fund or the trunk highway fund:

(1) Bureau of Criminal Apprehension laboratory;

(2) Explore Minnesota Tourism kiosks;

deleted text begin (3) Minnesota Safety Council;
deleted text end

deleted text begin (4) driver education programs;
deleted text end

deleted text begin (5) deleted text end new text begin (3) new text end Office of Emergency Medical Services;

deleted text begin (6) deleted text end new text begin (4) new text end Mississippi River Parkway Commission;

deleted text begin (7) deleted text end new text begin (5) new text end payments to the Department of Information Technology Services in excess of
actual costs incurred for trunk highway purposes;

deleted text begin (8) deleted text end new text begin (6) new text end personnel costs incurred on behalf of the governor's office;

deleted text begin (9) deleted text end new text begin (7) new text end the Office of Aeronautics within the Department of Transportation;

deleted text begin (10) the Office of Transit and Active Transportation within the Department of
Transportation;
deleted text end

deleted text begin (11) the Office of Passenger Rail;
deleted text end

deleted text begin (12) deleted text end new text begin (8) new text end purchase and maintenance of soft body armor under section 299A.38;

deleted text begin (13) deleted text end new text begin (9) new text end tourist information centers;

deleted text begin (14) deleted text end new text begin (10) new text end parades, events, or sponsorships of events;

deleted text begin (15) the installation, construction, expansion, or maintenance of public electric vehicle
infrastructure;
deleted text end

deleted text begin (16) deleted text end new text begin (11) new text end the statewide notification center for excavation services pursuant to chapter
216D; and

deleted text begin (17) deleted text end new text begin (12) new text end manufacturing license plates.

(b) The prohibition in paragraph (a) includes all expenses for the named entity or program,
including but not limited to payroll, purchased services, supplies, repairs, and equipment.
This prohibition on spending applies to any successor entities or programs that are
substantially similar to the entity or program named in this subdivision.

Sec. 3.

new text begin [161.1611] COMMUNITY-PREFERRED ALTERNATIVE ANALYSIS.
new text end

new text begin Subdivision 1. new text end

new text begin Alternative study required. new text end

new text begin (a) The requirements in this section apply
to all federally funded transportation projects involving the construction, reconstruction,
rehabilitation, or resurfacing of a highway. The requirements of this section do not apply
to a maintenance resurfacing project.
new text end

new text begin (b) The commissioner must study, in accordance with National Environmental Policy
Act requirements for studying design alternatives, an alternative design that has been
approved by the policy advisory committee as provided in subdivision 2, paragraph (b),
before developing transportation projects involving the construction, reconstruction,
rehabilitation, or resurfacing of a highway.
new text end

new text begin Subd. 2. new text end

new text begin Policy advisory committee; members. new text end

new text begin (a) The commissioner must form a
policy advisory committee composed of elected and appointed local officials from impacted
project areas to approve or disapprove alternative designs that involve construction,
reconstruction, rehabilitation, or resurfacing of a highway. The policy advisory committee
convened under this subdivision must have an odd number of members. The policy advisory
committee convened by the commissioner must include:
new text end

new text begin (1) a county commissioner of the county where the impacted project area is located;
new text end

new text begin (2) the two members of the legislature representing the impacted project area;
new text end

new text begin (3) the mayor of the city or town of the impacted project area; and
new text end

new text begin (4) at least three but no more than five members of a city council of the impacted project
area.
new text end

new text begin (b) The commissioner must develop, in accordance with National Environmental Policy
Act requirements, design alternatives for highway projects and submit the design alternatives
for approval to the policy advisory committee established in paragraph (a). The policy
advisory committee must approve by a two-thirds vote a preferred alternative design before
the commissioner:
new text end

new text begin (1) selects a preferred alternative design;
new text end

new text begin (2) initiates the final layout approval process as described in sections 161.162 to 161.167;
or
new text end

new text begin (3) begins project construction.
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 [161.179] TRANSPORTATION CUMULATIVE IMPACTS ANALYSIS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Applicable entity" means the commissioner with respect to a project for inclusion
in the state transportation improvement program or a metropolitan planning organization
with respect to a project for inclusion in the appropriate metropolitan transportation
improvement program.
new text end

new text begin (c) "Cumulative impacts" means the impacts of aggregated levels of past and current
transportation pollutants in a defined geographic area to which current residents are exposed.
new text end

new text begin (d) "Environmental justice area" has the meaning given in section 116.065, subdivision
1.
new text end

new text begin (e) "Environmental stressors" has the meaning given in section 116.065, subdivision 1,
and includes environmental effects on health from exposure to past and current transportation
pollutants in the environmental justice area.
new text end

new text begin (f) "Impacts analysis" means an analysis of cumulative impacts as provided under this
section.
new text end

new text begin (g) "Participating governmental unit" means a local unit of government that has
jurisdiction within any portion of the environmental justice area.
new text end

new text begin (h) "Project" means a project for trunk highway construction, reconstruction, or
maintenance.
new text end

new text begin (i) "Transportation pollutants" means any of the following emitted from a transportation
source, including but not limited to a motor vehicle and a highway construction,
reconstruction, or maintenance project: carbon monoxide; greenhouse gas emissions,
including those emissions described in section 216H.01, subdivision 2; nitric oxide and
nitrogen dioxide; noise; and particulate matter less than ten microns wide (PM-10) as a
result of tire or brake wear.
new text end

new text begin Subd. 2. new text end

new text begin Application; implementation. new text end

new text begin (a) This section applies to a project for trunk
highway construction, reconstruction, or maintenance:
new text end

new text begin (1) that has a total project cost estimate that is at least the amount specified for a major
highway project in section 174.56, subdivision 1, paragraph (b); and
new text end

new text begin (2) in which any portion is located in or within one mile of a census tract that is part of
an environmental justice area.
new text end

new text begin (b) This section applies beginning one year after the commissioner of the Pollution
Control Agency first adopts rules as provided under section 116.065, subdivision 6.
new text end

new text begin (c) This section does not apply to a project that was either included in the state
transportation improvement program or has been submitted for approval of the geometric
layout before the application date under paragraph (b).
new text end

new text begin Subd. 3. new text end

new text begin Impacts analysis; process. new text end

new text begin (a) Prior to inclusion of a trunk highway project
in the state transportation improvement program or a metropolitan transportation
improvement program, the applicable entity must:
new text end

new text begin (1) conduct an impacts analysis if:
new text end

new text begin (i) any of the following applies:
new text end

new text begin (A) the potential impacts of the project exceed any of the benchmarks for conducting
an impacts analysis as established by the commissioner under subdivision 4; or
new text end

new text begin (B) the project may substantially impact the environment or health of the residents of
an environmental justice area; or
new text end

new text begin (ii) the applicable entity determines that the analysis is warranted following an assessment
of any petitions under paragraph (c), material evidence, and any other relevant information;
and
new text end

new text begin (2) following an impacts analysis, make a determination of adverse impacts if:
new text end

new text begin (i) the impacts analysis concludes that performance of the project, in combination with
the environmental stressors present in the environmental justice area and considering the
socioeconomic impact of the facility to the residents of the environmental justice area, would
have substantial adverse cumulative impacts on the environment or health of the
environmental justice area and its residents; or
new text end

new text begin (ii) the applicable entity identifies a reasonable likelihood of substantial adverse
cumulative impacts under subdivision 4 based on public comments and testimony or any
other relevant information.
new text end

new text begin (b) If the applicable entity makes the determination under paragraph (a), clause (2), the
applicable entity must:
new text end

new text begin (1) alter the scope or design of the project and perform a revised impacts analysis that
meets the requirements under this section;
new text end

new text begin (2) enter into a community benefit agreement with a participating governmental unit as
provided under subdivision 6; or
new text end

new text begin (3) halt project development and disallow inclusion of the project in the appropriate
transportation improvement program.
new text end

new text begin (c) In considering whether an impacts analysis is warranted under paragraph (a), the
applicable entity must give weight to any petition requesting the impacts analysis that is (1)
signed by at least 100 individuals who reside or own property in the relevant environmental
justice area affected by the project, and (2) supported by material evidence that demonstrates
a potential for substantial adverse cumulative impacts to the relevant environmental justice
area if the project is completed.
new text end

new text begin (d) Within 30 days of determining whether an impacts analysis is required or warranted
under paragraph (a), the applicable entity must publish a written document on the entity's
website that (1) contains the reasons for the entity's decision, and (2) describes the
information that was considered in making the decision and how the information was
weighed.
new text end

new text begin Subd. 4. new text end

new text begin Impacts analysis; requirements. new text end

new text begin (a) The commissioner must establish a process
to conduct an impacts analysis. The process must provide for a determination under
subdivision 3, paragraph (a), clause (2).
new text end

new text begin (b) The process must specify requirements that govern an impacts analysis, including
but not limited to:
new text end

new text begin (1) benchmarks for an entity to use in determining whether an impacts analysis is required
under this section;
new text end

new text begin (2) the form, manner, and content of an impacts analysis;
new text end

new text begin (3) conditions, criteria, or circumstances that establish an environmental or health impact
as substantial adverse cumulative impacts;
new text end

new text begin (4) procedures for submission of a petition by environmental justice area residents in
support of an impacts analysis; and
new text end

new text begin (5) methods for holding public meetings and handling public comments and testimony
as required under subdivision 5.
new text end

new text begin (c) To the fullest extent feasible, the requirements under this subdivision must conform
with rules adopted by the commissioner of the Pollution Control Agency as provided under
section 116.065, subdivision 6.
new text end

new text begin Subd. 5. new text end

new text begin Public meetings. new text end

new text begin (a) An applicable entity that is required to conduct an impacts
analysis under subdivision 3 must hold at least two public meetings in the relevant
environmental justice area affected by the project. The first public meeting must be held
before conducting an impacts analysis. The second public meeting must be held after
completion of the impacts analysis.
new text end

new text begin (b) Before each public meeting held under this subdivision, the applicable entity must:
new text end

new text begin (1) at least 30 days before the meeting, publish notice that contains the date, time, and
location of the meeting and a brief description of the project (i) on the entity's website, and
(ii) in a newspaper of general circulation in the environmental justice area; and
new text end

new text begin (2) post physical signage in the relevant environmental justice area, as directed by the
commissioner.
new text end

new text begin (c) At least 30 days before a public meeting that follows completion of an impacts
analysis, the applicable entity must publish the impacts analysis on the entity's website.
new text end

new text begin (d) At each public meeting held under this subdivision, the applicable entity must:
new text end

new text begin (1) provide an opportunity for robust public and Tribal engagement; and
new text end

new text begin (2) accept written and oral comments, as directed by the commissioner, from any
interested party.
new text end

new text begin (e) If there is more than one project that is subject to the requirements under this section
in the same environmental justice area, the applicable entity may consolidate the public
meeting requirements under this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Community benefit agreement. new text end

new text begin (a) The commissioner must establish policies
that govern community benefit agreements, including but not limited to:
new text end

new text begin (1) procedures for an applicable entity and a participating governmental unit to enter
into an agreement;
new text end

new text begin (2) the content of an agreement, in conformance with the requirements under paragraph
(b); and
new text end

new text begin (3) a process for active outreach to residents of the relevant environmental justice area
that is designed to achieve meaningful community participation, which must include but is
not limited to requiring at least one public meeting on an agreement held within the
environmental justice area prior to its finalization.
new text end

new text begin (b) A community benefit agreement must provide for one or more of the following in
the relevant environmental justice area:
new text end

new text begin (1) a reduction in transportation pollutants;
new text end

new text begin (2) a reduction in adverse impacts on the environment or health;
new text end

new text begin (3) a mitigation action as provided under subdivision 7; or
new text end

new text begin (4) related beneficial impacts as determined by the commissioner.
new text end

new text begin (c) To the fullest extent feasible, the policies under this subdivision must conform with
rules governing a community benefit agreement adopted by the commissioner of the Pollution
Control Agency as provided under section 116.065, subdivision 6.
new text end

new text begin Subd. 7. new text end

new text begin Mitigation action. new text end

new text begin (a) A mitigation action as specified under section 161.178,
subdivision 4, paragraph (c), may be included in a community benefit agreement if:
new text end

new text begin (1) there is a specified project, program, or modification;
new text end

new text begin (2) the necessary funding sources are identified and sufficient amounts are committed;
new text end

new text begin (3) the mitigation is localized as provided under paragraph (b); and
new text end

new text begin (4) procedures are established to ensure that the mitigation action remains in substantially
the same form or a revised form that continues to meet the purposes of the community
benefit agreement.
new text end

new text begin (b) A mitigation action must be localized in the following priority order:
new text end

new text begin (1) within the relevant environmental justice area; and
new text end

new text begin (2) as specified under section 161.178, subdivision 5, paragraph (a), provided that a
reference to the capacity expansion project means the project under this section.
new text end

Sec. 5.

Minnesota Statutes 2024, section 174.02, subdivision 2a, is amended to read:

Subd. 2a.

Transportation ombudsperson new text begin ; environmental justice ombudsperson new text end .

(a)
The commissioner deleted text begin shall deleted text end new text begin must new text end appoint new text begin (1) new text end a person to the position of transportation
ombudsperson new text begin , and (2) a person to the position of environmental justice ombudsperson new text end .
deleted text begin The transportation deleted text end new text begin Each new text end ombudsperson reports directly to the commissioner. deleted text begin The
deleted text end

new text begin (b) An new text end ombudsperson must be selected without regard to political affiliation and must
be qualified to perform the duties specified in this subdivision. new text begin The environmental justice
ombudsperson must be qualified by experience or expertise in issues related to environmental
justice.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Powers and duties of deleted text begin the transportation deleted text end new text begin an new text end ombudsperson include deleted text begin , deleted text end but are not
limited to:

(1) providing a neutral, independent resource for dispute and issue resolution between
the department and the general public where another mechanism or forum is not available;

(2) gathering information about decisions, acts, and other matters of the department;

(3) providing information to the general public;

(4) facilitating discussions or arranging mediation when appropriate; and

(5) maintaining and monitoring performance measures for the ombudsperson program.

new text begin (d) The environmental justice ombudsperson must perform duties specified in paragraph
(c) with particular consideration of:
new text end

new text begin (1) environmental justice advocacy within the department;
new text end

new text begin (2) actions, impacts, disputes, and issues that involve environmental justice areas, as
defined in section 116.065, subdivision 1; and
new text end

new text begin (3) activity related to a transportation cumulative impacts analysis under section 161.179.
new text end

deleted text begin (c) The transportation deleted text end new text begin (e) An new text end ombudsperson may not hold another formal position within
the department. deleted text begin The transportation deleted text end new text begin An new text end ombudsperson may not impose a complaint fee.