1.1                          A bill for an act 
  1.2             relating to agriculture; expanding the purposes of the 
  1.3             value-added agricultural product loan program; 
  1.4             modifying requirements for environmental review of 
  1.5             proposed feedlots; appropriating money; amending 
  1.6             Minnesota Statutes 1996, sections 41B.046, subdivision 
  1.7             1; and 116D.04, subdivision 2a; repealing Minnesota 
  1.8             Statutes 1996, section 41B.046, subdivision 4a. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 41B.046, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [DEFINITIONS.] For purposes of this section:
  1.13     (1) "Agricultural commodity" has the meaning given in 
  1.14  section 17.90. 
  1.15     (2) "Agricultural product processing facility" means land, 
  1.16  buildings, structures, fixtures, and improvements located or to 
  1.17  be located in Minnesota and used or operated primarily for the 
  1.18  processing or production of marketable products from 
  1.19  agricultural commodities or agricultural energy resources, 
  1.20  including waste and residues from agricultural commodities, but, 
  1.21  except as provided in subdivision 4a, not including livestock or 
  1.22  livestock products, poultry or poultry products, or wood or wood 
  1.23  products. 
  1.24     (3) "Value-added agricultural product" means a product 
  1.25  derived from agricultural commodities or agricultural energy 
  1.26  resources, including waste and residues from agricultural 
  1.27  commodities, but, except as provided in subdivision 4a, not 
  2.1   including livestock or livestock products, poultry or poultry 
  2.2   products, or wood or wood products, which are processed by an 
  2.3   agricultural product processing facility. 
  2.4      (4) "Agricultural energy resources" means energy products 
  2.5   and resources available on and around agricultural land 
  2.6   including wind, solar, and biomass energy. 
  2.7      (5) "Farm-generated wind energy production facility" means 
  2.8   a wind energy conversion facility for the generation of 
  2.9   electricity and its support structure, base, switch gear, and 
  2.10  associated equipment installed on agricultural land. 
  2.11     Sec. 2.  Minnesota Statutes 1996, section 116D.04, 
  2.12  subdivision 2a, is amended to read: 
  2.13     Subd. 2a.  Where there is potential for significant 
  2.14  environmental effects resulting from any major governmental 
  2.15  action, the action shall be preceded by a detailed environmental 
  2.16  impact statement prepared by the responsible governmental unit.  
  2.17  The environmental impact statement shall be an analytical rather 
  2.18  than an encyclopedic document which describes the proposed 
  2.19  action in detail, analyzes its significant environmental 
  2.20  impacts, discusses appropriate alternatives to the proposed 
  2.21  action and their impacts, and explores methods by which adverse 
  2.22  environmental impacts of an action could be mitigated.  The 
  2.23  environmental impact statement shall also analyze those 
  2.24  economic, employment and sociological effects that cannot be 
  2.25  avoided should the action be implemented.  To ensure its use in 
  2.26  the decision making process, the environmental impact statement 
  2.27  shall be prepared as early as practical in the formulation of an 
  2.28  action.  
  2.29     (a) The board shall by rule establish categories of actions 
  2.30  for which environmental impact statements and for which 
  2.31  environmental assessment worksheets shall be prepared as well as 
  2.32  categories of actions for which no environmental review is 
  2.33  required under this section.  Construction of an individual 
  2.34  feedlot facility on a separate site must be considered a 
  2.35  separate action for the purpose of determining whether 
  2.36  environmental review is required for the facility. 
  3.1      (b) The responsible governmental unit shall promptly 
  3.2   publish notice of the completion of an environmental assessment 
  3.3   worksheet in a manner to be determined by the board and shall 
  3.4   provide copies of the environmental assessment worksheet to the 
  3.5   board and its member agencies.  Comments on the need for an 
  3.6   environmental impact statement may be submitted to the 
  3.7   responsible governmental unit during a 30 day period following 
  3.8   publication of the notice that an environmental assessment 
  3.9   worksheet has been completed.  The responsible governmental 
  3.10  unit's decision on the need for an environmental impact 
  3.11  statement shall be based on the environmental assessment 
  3.12  worksheet and the comments received during the comment period, 
  3.13  and shall be made within 15 days after the close of the comment 
  3.14  period.  The board's chair may extend the 15 day period by not 
  3.15  more than 15 additional days upon the request of the responsible 
  3.16  governmental unit.  
  3.17     (c) An environmental assessment worksheet shall also be 
  3.18  prepared for a proposed action whenever material evidence 
  3.19  accompanying a petition by not less than 25 individuals, 
  3.20  submitted before the proposed project has received final 
  3.21  approval by the appropriate governmental units, demonstrates 
  3.22  that, because of the nature or location of a proposed action, 
  3.23  there may be potential for significant environmental effects.  A 
  3.24  petition submitted for a proposed feedlot facility must contain 
  3.25  signatures of not less than 25 individuals who reside within a 
  3.26  five-mile radius of the proposed facility.  Petitions requesting 
  3.27  the preparation of an environmental assessment worksheet shall 
  3.28  be submitted to the board.  The chair of the board shall 
  3.29  determine the appropriate responsible governmental unit and 
  3.30  forward the petition to it.  A decision on the need for an 
  3.31  environmental assessment worksheet shall be made by the 
  3.32  responsible governmental unit within 15 days after the petition 
  3.33  is received by the responsible governmental unit.  The board's 
  3.34  chair may extend the 15 day period by not more than 15 
  3.35  additional days upon request of the responsible governmental 
  3.36  unit.  
  4.1      (d) The board may, prior to final approval of a proposed 
  4.2   project, require preparation of an environmental assessment 
  4.3   worksheet by a responsible governmental unit selected by the 
  4.4   board for any action where environmental review under this 
  4.5   section has not been specifically provided for by rule or 
  4.6   otherwise initiated.  
  4.7      (e) An early and open process shall be utilized to limit 
  4.8   the scope of the environmental impact statement to a discussion 
  4.9   of those impacts, which, because of the nature or location of 
  4.10  the project, have the potential for significant environmental 
  4.11  effects.  The same process shall be utilized to determine the 
  4.12  form, content and level of detail of the statement as well as 
  4.13  the alternatives which are appropriate for consideration in the 
  4.14  statement.  In addition, the permits which will be required for 
  4.15  the proposed action shall be identified during the scoping 
  4.16  process.  Further, the process shall identify those permits for 
  4.17  which information will be developed concurrently with the 
  4.18  environmental impact statement.  The board shall provide in its 
  4.19  rules for the expeditious completion of the scoping process.  
  4.20  The determinations reached in the process shall be incorporated 
  4.21  into the order requiring the preparation of an environmental 
  4.22  impact statement.  
  4.23     (f) Whenever practical, information needed by a 
  4.24  governmental unit for making final decisions on permits or other 
  4.25  actions required for a proposed project shall be developed in 
  4.26  conjunction with the preparation of an environmental impact 
  4.27  statement.  
  4.28     (g) An environmental impact statement shall be prepared and 
  4.29  its adequacy determined within 280 days after notice of its 
  4.30  preparation unless the time is extended by consent of the 
  4.31  parties or by the governor for good cause.  The responsible 
  4.32  governmental unit shall determine the adequacy of an 
  4.33  environmental impact statement, unless within 60 days after 
  4.34  notice is published that an environmental impact statement will 
  4.35  be prepared, the board chooses to determine the adequacy of an 
  4.36  environmental impact statement.  If an environmental impact 
  5.1   statement is found to be inadequate, the responsible 
  5.2   governmental unit shall have 60 days to prepare an adequate 
  5.3   environmental impact statement.  
  5.4      Sec. 3.  [APPROPRIATIONS.] 
  5.5      Subdivision 1.  [COMMISSIONER OF AGRICULTURE.] (a) 
  5.6   $3,000,000 from the general fund is appropriated to the 
  5.7   commissioner of agriculture to make livestock development grants 
  5.8   to farmers, educational institutions, nonprofit organizations, 
  5.9   or other appropriate entities, as determined by the commissioner.
  5.10     Grants under this paragraph may be made for: 
  5.11     (1) on-farm livestock education; 
  5.12     (2) livestock research and educational programs; 
  5.13     (3) programs to assist people entering livestock farming; 
  5.14     (4) programs to assist livestock farmers with farming 
  5.15  operations in transition; and 
  5.16     (5) livestock development and marketing programs. 
  5.17     This appropriation is available until June 30, 1999. 
  5.18     (b) $10,000,000 is appropriated from the general fund to 
  5.19  the commissioner of agriculture for feedlot upgrade loans under 
  5.20  the agricultural best management practices loan program in 
  5.21  Minnesota Statutes, section 17.117.  This appropriation is 
  5.22  available until June 30, 1999. 
  5.23     (c) $250,000 is appropriated from the general fund to the 
  5.24  value-added agricultural product revolving fund under Minnesota 
  5.25  Statutes, section 41B.046. 
  5.26     Subd. 2.  [BOARD OF ANIMAL HEALTH.] $420,000 from the 
  5.27  general fund is added to the appropriation in fiscal year 1999 
  5.28  for control of paratuberculosis ("Johne's disease") in Laws 
  5.29  1997, chapter 216, section 8. 
  5.30     Subd. 3.  [UNIVERSITY OF MINNESOTA.] $800,000 is 
  5.31  appropriated from the general fund to the University of 
  5.32  Minnesota for feed mill modifications, construction of a hog 
  5.33  finishing barn, and for alternative hog production facilities on 
  5.34  the Morris campus.  This appropriation is available until June 
  5.35  30, 1999. 
  5.36     Subd. 4.  [BOARD OF WATER AND SOIL RESOURCES.] $3,000,000 
  6.1   is appropriated to the board of water and soil resources for 
  6.2   grants to soil and water conservation districts for cost-sharing 
  6.3   contracts for water quality management on feedlots.  This 
  6.4   appropriation is available until expended. 
  6.5      Sec. 4.  [REPEALER.] 
  6.6      Minnesota Statutes 1996, section 41B.046, subdivision 4a, 
  6.7   is repealed.