HF4153

Purpose

• Establish a formal preapplication evaluation process for large data centers to assess how their water use could affect water availability and quality.

Main Provisions

• Scope and trigger:
  • Applies to a data center as defined in Minnesota Statutes, with a proposed net increase in consumptive water use exceeding 100,000,000 gallons per year and that requires a permit amendment or a new individual permit.
• Preapplication information:
  • The agency may request information from the data center to help assess water needs, including:
  • Project description
  • Estimated water use rates and volumes for the maximum day, maximum month, and average year
  • Anticipated water source
  • Water quality or temperature requirements
  • The agency may request additional information as needed.
• Agency process and timing:
  • The department will evaluate the information and respond in writing (which can be sent electronically) describing potential water availability constraints at each proposed site.
• Interagency collaboration:
  • When assessing the impact on water quality and quantity, the department may consult with the commissioners of health, agriculture, the Pollution Control Agency, and other state agencies.
• Privacy and process boundaries:
  • Communications or information exchanged under this subdivision are nonpublic data.
  • This preapplication process does not replace or override other environmental reviews or permit processes required under federal, state, or local law.
• Definition of net increase:
  • Net increase in consumptive use means the estimated net increase in annual water consumption after subtracting documented reductions from other entities that occurred previously or are scheduled to occur within a specified window.
• Exemption for certain large-scale data centers:
  • The preapplication requirements do not apply to a qualified large-scale data center that has filed an application for permit/approval by January 1, 2025, or is located in an eligible community as defined by statute.

Significant Changes to Existing Law

• Adds a mandatory preapplication evaluation step for large data centers with substantial planned increases in water use, including formal written responses about site-specific water availability constraints.
• Introduces a data privacy protection (nonpublic data) for communications and information shared during the preapplication process.
• Establishes an interagency consultation mechanism to assess water quality and quantity impacts.
• Defines net increase in consumptive use for the purpose of triggering the preapplication process and clarifies exclusions for certain large-scale facilities.

Practical Implications

• Large data centers planning significant increases in water use will face an early information-gathering step with state agencies.
• The process aims to identify water-related constraints before new permits or amendments are finalized.
• Privacy protections limit public access to communications and information exchanged during this step.
• Some existing large-scale projects that meet criteria or are in eligible locations may be exempt from this preapplication requirement.

Applicable Terminology and Concepts

• Data center
• Preapplication evaluation
• Water appropriation
• Consumptive use
• Permit amendment
• New individual permit
• Water source
• Water quality
• Maximum day / maximum month / average year (water use rates)
• Nonpublic data
• Health, Agriculture, Pollution Control Agency (state agencies)
• Environment review
• Net increase in consumptive use
• Qualified large-scale data center
• 297A.68 subdivision 42
• 116J.55 subdivision 1

Relationship to Other Provisions

• The bill indicates there are broader amendments related to data centers (exemptions or other adjustments to fees, taxes, and solar energy standards), but the specific provisions are not detailed in the excerpt provided.

Relevant Terms - data center - preapplication evaluation - water appropriation - consumptive use - net increase in consumptive use - permit amendment - new individual permit - water source - water quality - maximum day - maximum month - average year - nonpublic data - Health - Agriculture - Pollution Control Agency - environment review - qualified large-scale data center - 297A.68 subdivision 42 - 116J.55 subdivision 1