SF3968

Purpose

To improve planning and oversight for large water use projects and to clarify how information is handled during the permitting process. The bill also includes related provisions to address energy use by data centers, with the aim of guiding energy policy and conservation.

Main Provisions

• Large water project preapplication review

  • Creates a new Subdivision 5 under Minnesota Statutes section 103G.265 called “Preapplication evaluation of large water appropriation projects.”
  • Applies to projects with proposed consumptive use above 100 million gallons per year or more than 250,000 gallons per day.
  • Goal: ensure projects fit regional water needs, protect existing water users, and promote a more efficient permitting timeline.
  • Encourages early discussion with the department during project development, ideally before choosing a final site, finalizing design, or acquiring land.

• Early outreach and notification requirements

  • If a city or county employee is contacted about a project likely subject to this rule, they must notify the department in writing within ten business days, including the name and contact information of the person and potential project locations.

• Information requests during preapplication

  • The department may request helpful information from potential applicants, including:
  • Project description and all potential locations
  • Estimated maximum daily, seasonal, and annual water use
  • Anticipated water source
  • Water quality or temperature requirements
  • Any other information needed to assess water supply sufficiency

• Department evaluation and response

  • The department reviews the information and provides a written response describing potential water availability constraints at each proposed site (which may be sent electronically).

• Interagency input

  • For assessing water quality and quantity impacts, the department may consult with the commissioners of health, agriculture, the Pollution Control Agency, and other state agencies as needed.

• Data privacy and public access

  • Communications and information exchanged during the preapplication stage are nonpublic data until the project is abandoned or the applicant files a water use permit application. After that, the data become public.

• Relationship to other requirements

  • The preapplication process does not replace or override environmental reviews, preliminary approvals, or any other requirements under federal, state, or local law.

• Scope of the provisions

  • Specific to large water appropriation projects and their potential impact on water availability and efficiency of the permitting process.

• Related energy/data center provisions (summary of intent)

  • The bill also includes several energy-related provisions affecting data centers, such as:
  • Clarifying how data centers are treated for environmental review
  • Adjusting how data centers affect energy savings goals and energy conservation contributions
  • Establishing energy requirements and fees for data centers
  • Creating or updating a tariff for data centers through the Public Utilities Commission
  • These energy provisions indicate a broader effort to regulate and fund energy conservation related to data centers (details appear in other sections of the bill).

Changes to Existing Law (Summary)

• Adds a new subdivision (Subd. 5) to 103G.265 to formalize a preapplication evaluation process for large water use projects.
• Establishes thresholds for what counts as a “large” water project (consumptive use > 100 million gallons/year or > 250,000 gallons/day).
• Introduces requirements for early outreach, information sharing, and written department responses about water availability constraints.
• Keeps a confidentiality framework for preapplication communications (nonpublic data) until a permit application is filed or the project is abandoned, after which data become public.
• Allows interagency consultation and clarifies that the new process does not replace existing environmental review or permit processes.

Impact and Who It Affects

• Potential applicants for large water use projects (developers, water users, and their consultants).
• Local governments (cities and counties) that may interface with state agencies during preapplication.
• State agencies involved in water, health, agriculture, and pollution control, which may participate in the review process.
• Data center operators and energy policymakers, due to the energy-related provisions included in the bill (affecting environmental review, energy goals, funding for energy conservation, fees, and tariffs).

Summary in Plain Terms

• If a project will use a lot of water, the bill adds an early planning step where the project must talk with the state and share information to check if there will be enough water and to spot any problems early.
• Local governments must promptly notify the state if they hear about such projects.
• The state will tell the project developers in writing what water supply issues might exist at each possible site.
• The process protects privacy of early discussions, but information becomes public once a formal permit application is filed.
• The new process sits alongside, but does not replace, existing environmental reviews and requirements.
• The bill also pursues several energy-related changes tied to data centers, including how they are factored into energy goals, fees, and tariffs.

Relevant Terms - large water appropriation project - consumptive use - preapplication - preapplication evaluation - water availability constraints - water use permit - water source - water quality - water temperature - nonpublic data - public data (after permit filing or abandonment) - environmental review - department (state agency administering water permits) - interagency consultation - 103G.265 (Minnesota Statutes) - data centers - energy savings goal - energy conservation and optimization plan - tariff (Public Utilities Commission) - Public Utilities Commission - large energy facility - fees for data centers - environmental review level for data centers