HF4740

Purpose

To improve environmental protection around large feedlots by requiring financial assurance to cover closure costs and by creating a process to identify and address abandoned manure storage areas. The bill also sets up a phased timeline for bringing existing feedlots into compliance and provides funding to support these activities and related training.

Main provisions

• Financial assurance for large feedlots

  • Feedlots with a capacity of 1,000 or more animal units must show proof of financial assurance before a permit is issued or renewed.
  • The financial assurance must be enough to pay for closure costs of the feedlot and its manure storage area, with all terms approved by the commissioner.
  • The commissioner may consult with qualified experts, and the applicant must pay these costs.
  • The financial assurance must remain in effect for the life of the permit, and money must be available to the commissioner if the permittee fails to meet closure requirements.
  • The financial assurance instrument must be valid, binding, non-dischargeable in bankruptcy, and provide at least 120 days’ notice before cancellation.

• Abandoned manure storage areas

  • The commissioner must compile an annual list of abandoned manure storage areas (areas that were previously registered and have ceased operation or have been unused for at least three years).
  • This list is separate from a feedlot inventory and has specific criteria for classification as abandoned.

• Compliance schedule

  • The new financial assurance requirements may be phased in during the next reissuance of the national pollutant discharge elimination system (NPDES) general permit for concentrated animal feeding operations.
  • A plan will be established to bring permittees into compliance, prioritizing the largest operations by animal units (up to 250 permittees per year).

• Manure storage area reports

  • By December 15, 2026, the PCA must create a county-level list of potentially abandoned manure storage areas.
  • Delegated counties must report abandoned areas by January 15, 2028.
  • Regional PCA staff must also compile lists for counties without delegation.
  • By February 15, 2028, the PCA must submit a statewide compilation and list to legislative committees, with remediation recommendations. They must consult with county feedlot officers and livestock associations for recommendations.
  • Abandoned storage area reports are not counted as feedlot inventories.
  • Special allowances are made regarding delegation years 2028 and 2029 to avoid penalties for counties adjusting resources; penalties require a majority vote of the Minnesota Association of County Feedlot Officers if penalties occur in those years.

• Appropriations and funding

  • General fund: funds to implement financial assurance requirements, compile the abandoned list, distribute funds to delegated counties for inspections, and provide training for producers and inspectors.
  • Environmental fund: funds to implement financial assurance requirements and the abandoned list.
  • These are one-time appropriations available through mid-2028.
  • Additional targeted funding supports training and collaboration with the Minnesota Association of County Feedlot Officers and livestock groups.

Significant changes to existing law

• Adds a new requirement for financial assurance for large feedlots (1,000+ animal units) to cover closure costs, with non-bankruptcy protection and long-term enforceability.
• Establishes a formal process to identify and report abandoned manure storage areas, distinct from standard feedlot inventories.
• Creates a phased timeline for implementing the new financial assurance requirements tied to the reissuance of the NPDES permit.
• Introduces annual reporting and remediation considerations at the state and county levels, with a structured funding plan to support implementation and training.
• Provides protection for delegated counties during initial transition years and outlines penalties only with approval from a regional association.

Implementation and oversight

• Oversight by the Pollution Control Agency (PCA) and, for financial analysis, potential consultation with outside experts.
• Implementation costs borne by applicants; PCA can hire third parties to help with closure oversight and cost evaluation.
• Regular reporting to legislative committees and coordination with county feedlot officers and livestock groups.

Timeline and phased approach

• Immediate: new financial assurance requirement applies to permit issuance or renewal for large feedlots; cost estimates must be prepared.
• 2026–2028: establish lists of abandoned manure storage areas; counties and PCA submit reports.
• 2027–2028: phased compliance for large feedlots; training and outreach funded.
• 2028–2029: transition years with certain delegation-related protections; penalties require association approval for counties.
• Ongoing: compliance with closure requirements and annual updates to the abandoned-area lists.

Definitions and key terms

• Feedlots and animal units
• Financial assurance; closure costs; closure requirements
• Manure storage area
• Abandoned manure storage areas (defined criteria: ceased operation or unused for ≥3 years)
• Financial assurance instrument; non-dischargeable by bankruptcy; notice of cancellation
• NPDES general permit (MNG440000)
• Delegated counties; county feedlot officer
• Remediation recommendations; cost estimates; third-party consultation
• Minnesota Pollution Control Agency (PCA)

Relevant terms - financial assurance - closure costs - feedlot - animal units - manure storage area - abandoned manure storage areas - non-dischargeable bankruptcy - cancellation notice (120 days) - third-party consultation - NPDES general permit (MNG440000) - Pollution Control Agency (PCA) - delegated counties - remediation recommendations - cost estimates - restoration/closure requirements - inventories (feedlot inventories vs. abandoned areas)