1.1 A bill for an act 1.2 relating to environment; modifying provisions to petition for preparation of 1.3 environmental assessment worksheet; amending Minnesota Statutes 2024, sections 1.4 116D.04, subdivisions 2a, 5a; 116D.045, subdivision 1. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. Minnesota Statutes 2024, section 116D.04, subdivision 2a, is amended to read: 1.7 Subd. 2a.When prepared.(a) Where there is potential for significant environmental 1.8effects resulting from any major governmental action, the action must be preceded by a 1.9detailed environmental impact statement prepared by the responsible governmental unit. 1.10The environmental impact statement must be an analytical rather than an encyclopedic 1.11document that describes the proposed action in detail, analyzes its significant environmental 1.12impacts, discusses appropriate alternatives to the proposed action and their impacts, and 1.13explores methods by which adverse environmental impacts of an action could be mitigated. 1.14The environmental impact statement must also analyze those economic, employment, and 1.15sociological effects that cannot be avoided should the action be implemented. To ensure its 1.16use in the decision-making process, the environmental impact statement must be prepared 1.17as early as practical in the formulation of an action. 1.18 (b) The board shall by rule establish categories of actions for which environmental 1.19impact statements and for which environmental assessment worksheets must be prepared 1.20as well as categories of actions for which no environmental review is required under this 1.21section. A mandatory environmental assessment worksheet is not required for the expansion 1.22of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b), or the 1.23conversion of an ethanol plant to a biobutanol facility or the expansion of a biobutanol 1Section 1. REVISOR EB/RC 25-0036011/19/24 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 1204 NINETY-FOURTH SESSION 2.1facility as defined in section 41A.15, subdivision 2d, based on the capacity of the expanded 2.2or converted facility to produce alcohol fuel, but must be required if the ethanol plant or 2.3biobutanol facility meets or exceeds thresholds of other categories of actions for which 2.4environmental assessment worksheets must be prepared. The responsible governmental unit 2.5for an ethanol plant or biobutanol facility project for which an environmental assessment 2.6worksheet is prepared is the state agency with the greatest responsibility for supervising or 2.7approving the project as a whole. 2.8 (c) A mandatory environmental impact statement is not required for a facility or plant 2.9located outside the seven-county metropolitan area that produces less than 125,000,000 2.10gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less than 400,000 2.11tons of chemicals annually, if the facility or plant is: an ethanol plant, as defined in section 2.1241A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined in section 41A.15, 2.13subdivision 2d; or a cellulosic biofuel facility. A facility or plant that only uses a cellulosic 2.14feedstock to produce chemical products for use by another facility as a feedstock is not 2.15considered a fuel conversion facility as used in rules adopted under this chapter. 2.16 (d) The responsible governmental unit shall promptly publish notice of the completion 2.17of an environmental assessment worksheet by publishing the notice in at least one newspaper 2.18of general circulation in the geographic area where the project is proposed, by posting the 2.19notice on a website that has been designated as the official publication site for publication 2.20of proceedings, public notices, and summaries of a political subdivision in which the project 2.21is proposed, or in any other manner determined by the board and shall provide copies of 2.22the environmental assessment worksheet to the board and its member agencies. Comments 2.23on the need for an environmental impact statement may be submitted to the responsible 2.24governmental unit during a 30-day period following publication of the notice that an 2.25environmental assessment worksheet has been completed. The responsible governmental 2.26unit may extend the 30-day comment period for an additional 30 days one time. Further 2.27extensions of the comment period may not be made unless approved by the project's proposer. 2.28The responsible governmental unit's decision on the need for an environmental impact 2.29statement must be based on the environmental assessment worksheet and the comments 2.30received during the comment period, and must be made within 15 days after the close of 2.31the comment period. The board's chair may extend the 15-day period by not more than 15 2.32additional days upon the request of the responsible governmental unit. 2.33 (e) An environmental assessment worksheet must also be prepared for a proposed action 2.34whenever material evidence accompanying a petition by not less than 100 individuals who 2.35reside or own property in the state, submitted before the proposed project has received final 2Section 1. REVISOR EB/RC 25-0036011/19/24 3.1approval by the appropriate governmental units, demonstrates that, because of the nature 3.2or location of a proposed action, there may be potential for significant environmental effects. 3.3Petitions may be submitted by: 3.4 (1) a Minnesota Tribal government as defined under section 10.65, subdivision 2; or 3.5 (2) not less than 100 individuals who reside or own property in the state. 3.6 (f) Petitions requesting the preparation of an environmental assessment worksheet under 3.7paragraph (e) must be submitted to the board. The chair of the board or designee shall 3.8determine the appropriate responsible governmental unit and forward the petition to it. A 3.9decision on the need for an environmental assessment worksheet must be made by the 3.10responsible governmental unit within 15 days after the petition is received by the responsible 3.11governmental unit. The board's chair or designee may extend the 15-day period by not more 3.12than 15 additional days upon request of the responsible governmental unit. 3.13 (f) (g) Except in an environmentally sensitive location where Minnesota Rules, part 3.144410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental 3.15review under this chapter and rules of the board, if: 3.16 (1) the proposed action is: 3.17 (i) an animal feedlot facility with a capacity of less than 1,000 animal units; or 3.18 (ii) an expansion of an existing animal feedlot facility with a total cumulative capacity 3.19of less than 1,000 animal units; 3.20 (2) the application for the animal feedlot facility includes a written commitment by the 3.21proposer to design, construct, and operate the facility in full compliance with Pollution 3.22Control Agency feedlot rules; and 3.23 (3) the county board holds a public meeting for citizen input at least ten business days 3.24before the Pollution Control Agency or county issuing a feedlot permit for the animal feedlot 3.25facility unless another public meeting for citizen input has been held with regard to the 3.26feedlot facility to be permitted. The exemption in this paragraph is in addition to other 3.27exemptions provided under other law and rules of the board. 3.28 (g) (h) The board may, before final approval of a proposed project, require preparation 3.29of an environmental assessment worksheet by a responsible governmental unit selected by 3.30the board for any action where environmental review under this section has not been 3.31specifically provided for by rule or otherwise initiated. 3Section 1. REVISOR EB/RC 25-0036011/19/24 4.1 (h) (i) An early and open process must be used to limit the scope of the environmental 4.2impact statement to a discussion of those impacts that, because of the nature or location of 4.3the project, have the potential for significant environmental effects. The same process must 4.4be used to determine the form, content, and level of detail of the statement as well as the 4.5alternatives that are appropriate for consideration in the statement. In addition, the permits 4.6that will be required for the proposed action must be identified during the scoping process. 4.7Further, the process must identify those permits for which information will be developed 4.8concurrently with the environmental impact statement. The board shall provide in its rules 4.9for the expeditious completion of the scoping process. The determinations reached in the 4.10process must be incorporated into the order requiring the preparation of an environmental 4.11impact statement. 4.12 (i) (j) The responsible governmental unit shall, to the extent practicable, avoid duplication 4.13and ensure coordination between state and federal environmental review and between 4.14environmental review and environmental permitting. Whenever practical, information 4.15needed by a governmental unit for making final decisions on permits or other actions required 4.16for a proposed project must be developed in conjunction with the preparation of an 4.17environmental impact statement. When an environmental impact statement is prepared for 4.18a project requiring multiple permits for which two or more agencies' decision processes 4.19include either mandatory or discretionary hearings before a hearing officer before the 4.20agencies' decision on the permit, the agencies may, notwithstanding any law or rule to the 4.21contrary, conduct the hearings in a single consolidated hearing process if requested by the 4.22proposer. All agencies having jurisdiction over a permit that is included in the consolidated 4.23hearing shall participate. The responsible governmental unit shall establish appropriate 4.24procedures for the consolidated hearing process, including procedures to ensure that the 4.25consolidated hearing process is consistent with the applicable requirements for each permit 4.26regarding the rights and duties of parties to the hearing, and shall use the earliest applicable 4.27hearing procedure to initiate the hearing. All agencies having jurisdiction over a permit 4.28identified in the draft environmental assessment worksheet scoping document must begin 4.29reviewing any permit application upon publication of the notice of preparation of the 4.30environmental impact statement. 4.31 (j) (k) An environmental impact statement must be prepared and its adequacy determined 4.32within 280 days after notice of its preparation unless the time is extended by consent of the 4.33parties or by the governor for good cause. The responsible governmental unit shall determine 4.34the adequacy of an environmental impact statement, unless within 60 days after notice is 4.35published that an environmental impact statement will be prepared, the board chooses to 4Section 1. REVISOR EB/RC 25-0036011/19/24 5.1determine the adequacy of an environmental impact statement. If an environmental impact 5.2statement is found to be inadequate, the responsible governmental unit has 60 days to prepare 5.3an adequate environmental impact statement. 5.4 (k) (l) The proposer of a specific action may include in the information submitted to the 5.5responsible governmental unit a preliminary draft environmental impact statement under 5.6this section on that action for review, modification, and determination of completeness and 5.7adequacy by the responsible governmental unit. A preliminary draft environmental impact 5.8statement prepared by the project proposer and submitted to the responsible governmental 5.9unit must identify or include as an appendix all studies and other sources of information 5.10used to substantiate the analysis contained in the preliminary draft environmental impact 5.11statement. The responsible governmental unit shall require additional studies, if needed, 5.12and obtain from the project proposer all additional studies and information necessary for 5.13the responsible governmental unit to perform its responsibility to review, modify, and 5.14determine the completeness and adequacy of the environmental impact statement. 5.15 Sec. 2. Minnesota Statutes 2024, section 116D.04, subdivision 5a, is amended to read: 5.16 Subd. 5a.Rules.The board shall, by January 1, 1981, promulgate rules in conformity 5.17with this chapter and the provisions of chapter 15, establishing: 5.18 (1) the governmental unit which shall be responsible for environmental review of a 5.19proposed action; 5.20 (2) the form and content of environmental assessment worksheets; 5.21 (3) a scoping process in conformance with subdivision 2a, paragraph (h) (i); 5.22 (4) a procedure for identifying during the scoping process the permits necessary for a 5.23proposed action and a process for coordinating review of appropriate permits with the 5.24preparation of the environmental impact statement; 5.25 (5) a standard format for environmental impact statements; 5.26 (6) standards for determining the alternatives to be discussed in an environmental impact 5.27statement; 5.28 (7) alternative forms of environmental review which are acceptable pursuant to 5.29subdivision 4a; 5.30 (8) a model ordinance which may be adopted and implemented by local governmental 5.31units in lieu of the environmental impact statement process required by this section, providing 5.32for an alternative form of environmental review where an action does not require a state 5Sec. 2. REVISOR EB/RC 25-0036011/19/24 6.1agency permit and is consistent with an applicable comprehensive plan. The model ordinance 6.2shall provide for adequate consideration of appropriate alternatives, and shall ensure that 6.3decisions are made in accordance with the policies and purposes of Laws 1980, chapter 6.4447; 6.5 (9) procedures to reduce paperwork and delay through intergovernmental cooperation 6.6and the elimination of unnecessary duplication of environmental reviews; 6.7 (10) procedures for expediting the selection of consultants by the governmental unit 6.8responsible for the preparation of an environmental impact statement; and 6.9 (11) any additional rules which are reasonably necessary to carry out the requirements 6.10of this section. 6.11 Sec. 3. Minnesota Statutes 2024, section 116D.045, subdivision 1, is amended to read: 6.12 Subdivision 1.Assessment.The board must by rule adopt procedures to: 6.13 (1) assess the proposer of a specific action for the responsible governmental unit's 6.14reasonable costs of preparing, reviewing, and distributing the environmental impact statement. 6.15The costs must be determined by the responsible governmental unit according to the rules 6.16adopted by the board; and 6.17 (2) authorize a responsible governmental unit to allow a proposer of a specific action to 6.18prepare a draft environmental impact statement according to section 116D.04, subdivision 6.192a, paragraph (k) (l). 6Sec. 3. REVISOR EB/RC 25-0036011/19/24