Financial assurance required for feedlot permits, inventories and reports required, and money appropriated.

A bill for an act

relating to environment; requiring financial assurance for certain feedlot permits;

requiring inventories and reports; appropriating money; amending Minnesota

Statutes 2024, section 116.07, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2024, section 116.07, is amended by adding a subdivision

to read:

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Subd. 7f.

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Financial assurance.

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(a) Before the commissioner issues or renews a permit

for a feedlot with a capacity of 1,000 or more animal units, the permit applicant must submit

to the commissioner proof of financial assurance that satisfies the requirements under this

subdivision. Financial assurance must be of an amount sufficient to pay the closure costs

determined under paragraph (c) for the feedlot and manure storage area, with all terms and

conditions of the financial assurance instrument approved by the commissioner. The

commissioner, in evaluating financial assurance, may consult individuals with documented

experience in the analysis. The applicant must pay all costs incurred by the commissioner

to obtain the analysis.

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(b) A permittee must maintain sufficient financial assurance for the duration of the permit

and demonstrate to the commissioner's satisfaction that:

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(1) money will be available and made payable to the commissioner if the commissioner

determines the permittee is not in full compliance with the closure requirements established

by the commissioner in rule for feedlots and manure storage areas;

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(2) the financial assurance instrument is fully valid, binding, and enforceable under state

and federal law;

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(3) the financial assurance instrument is not dischargeable through bankruptcy; and

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(4) the financial assurance provider will give the commissioner at least 120 days' notice

before canceling the financial assurance instrument.

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(c) The permit applicant must submit to the commissioner a documented estimate of

costs required to implement the closure requirements established by the commissioner in

rule for feedlots and manure storage areas. Cost estimates must incorporate current dollar

values at the time of the estimate and any additional costs required by the commissioner to

oversee and hire a third party to implement the closure requirements. The applicant must

not incorporate the estimated salvage or market value of manure, animals, structures,

equipment, land, or other assets. The commissioner must evaluate and may modify the

applicant's cost estimates and may consult individuals with documented experience in feedlot

or manure storage area closure or remediation. The applicant must pay all costs incurred

by the commissioner to obtain the consultation.

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Sec. 2.

Minnesota Statutes 2024, section 116.07, is amended by adding a subdivision to

read:

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Subd. 7g.

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Abandoned manure storage areas.

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At least annually, the commissioner must

compile a list of abandoned manure storage areas in the state. A list compiled under this

subdivision is not a feedlot inventory for purposes of subdivision 7b. For purposes of this

subdivision, "abandoned manure storage areas" means solid and liquid manure storage areas

that have been previously registered with the state as a feedlot with a manure storage area

and have:

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(1) permanently ceased operation and are subject to, but not in compliance with, the

closure requirements established by the commissioner in rule for feedlots and manure storage

areas; or

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(2) been unused for at least three years.

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Sec. 3.
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FEEDLOT FINANCIAL ASSURANCE REQUIREMENTS COMPLIANCE

SCHEDULE.
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The commissioner of the Pollution Control Agency may phase in the new financial

assurance requirements under Minnesota Statutes, section 116.07, subdivision 7f, during

the next reissuance of the national pollutant discharge elimination system general permit

for concentrated animal feeding operations, MNG440000. The commissioner must establish

a schedule for permittees to come into compliance with the requirements. The schedule

must require 250 permittees per year to comply, beginning with the operations with the

largest number of animal units.

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Sec. 4.
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MANURE STORAGE AREA REPORTS REQUIRED.
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Subdivision 1.

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Reports.

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(a) No later than December 15, 2026, the commissioner of the

Pollution Control Agency must develop a list based on registration data for each county of

potentially abandoned manure storage areas.

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(b) No later than January 15, 2028, each delegated county must report to the commissioner

of the Pollution Control Agency a list of abandoned manure storage areas located in the

county. The report must be submitted by the county feedlot officer.

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(c) No later than January 15, 2028, the Pollution Control Agency regional feedlot staff

must compile a list of abandoned manure storage areas located in counties under their

regulatory jurisdiction that do not have delegation agreements with the agency.

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(d) No later than February 15, 2028, the commissioner of the Pollution Control Agency

must submit a compilation report and list of abandoned manure storage areas to the legislative

committees with jurisdiction over agriculture and environment. The report must include

recommendations for remediation. The commissioner must seek advice from the Minnesota

Association of County Feedlot Officers and livestock associations for recommendations,

including existing and any proposed options for remediation.

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(e) For purposes of this section, "abandoned manure storage areas" has the meaning

given in Minnesota Statutes, section 116.07, subdivision 7g.

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(f) Reports and lists required under this section are not feedlot inventories for purposes

of Minnesota Statutes, section 116.07, subdivision 7b.

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Subd. 2.

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Delegated counties.

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(a) Except as provided in paragraph (b), during the 2028

and 2029 delegation years, the commissioner of the Pollution Control Agency must not

penalize a delegated county for a performance issue or shortcoming attributable to the

county's reassignment of county feedlot officer resources necessary to comply with the

additional requirements imposed upon the county under subdivision 1.

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(b) The commissioner may penalize a county during the 2028 or 2029 delegation year

for a performance issue or shortcoming attributable to the county's reassignment of county

feedlot officer resources only if the specific penalty is approved by a majority of the board

of the Minnesota Association of County Feedlot Officers.

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Sec. 5.
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APPROPRIATIONS.
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Subdivision 1.

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General fund.

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(a) $500,000 in fiscal year 2027 is appropriated from the

general fund to the commissioner of the Pollution Control Agency to implement feedlot

financial assurance requirements and compile the annual list of abandoned manure storage

areas under Minnesota Statutes, section 116.07, subdivisions 7f and 7g.

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(b) $700,000 in fiscal year 2027 is appropriated from the general fund to the commissioner

of the Pollution Control Agency for distribution to delegated counties based on registered

feedlots and manure storage areas for inspections of manure storage areas and the abandoned

manure storage area reports required under this act. This is a onetime appropriation and is

available until June 30, 2028.

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(c) $250,000 in fiscal year 2027 is appropriated from the general fund to the commissioner

of the Pollution Control Agency for a grant to the Minnesota Association of County Feedlot

Officers to provide training on state feedlot requirements, working efficiently and effectively

with producers, and reducing the incidence of manure or nutrients entering surface water

or groundwater.

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Subd. 2.

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Environmental fund.

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$500,000 in fiscal year 2027 is appropriated from the

environmental fund to the commissioner of the Pollution Control Agency to implement

feedlot financial assurance requirements and compile the annual list of abandoned manure

storage areas under Minnesota Statutes, section 116.07, subdivisions 7f and 7g.

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