SF4976

Purpose

This bill would require large feedlots to have financial protections in place to cover the costs of closing and cleaning up their facilities and manure storage areas. It also creates ongoing reporting on abandoned manure storage areas, sets a phased timeline for when these requirements must be met, and provides funding to state and local entities to implement and enforce the changes. The goal is to ensure funds are available to properly close and remediate feedlots and to identify and address abandoned storage facilities.

Main Provisions and Goals

• Financial assurance for feedlots: Before a feedlot with 1,000 or more animal units can receive or renew a permit, the applicant must submit proof of financial assurance enough to pay closure costs for the feedlot and its manure storage areas. The assurance must be valid, non-dischargeable by bankruptcy, and provide at least 120 days’ notice before cancellation. The state agency may consult experts to evaluate the financial assurance and may require the applicant to cover associated analysis costs.
• Closure cost estimates: The applicant must provide a documented, current-dollar estimate of the costs to implement closure requirements. The estimate must exclude any salvage or market value of manure, animals, structures, equipment, land, or other assets. The agency may adjust the estimate and hire experts as needed; the applicant pays related costs.
• Abandoned manure storage areas: The bill creates a process to identify and list manure storage areas that have permanently ceased operation or been unused for at least three years. These areas are considered “abandoned” and are not counted as feedlot inventories for certain regulatory purposes.
• Compliance schedule: The agency may phase in the new financial assurance requirements during the next reissuance of the National Pollutant Discharge Elimination System (NPDES) general permit for concentrated animal feeding operations (MNG440000). A schedule would require about 250 permittees per year to come into compliance, prioritizing those with the most animal units.
• Reporting on abandoned areas: By December 15, 2026, the agency must develop county-by-county lists of potentially abandoned manure storage areas. By January 15, 2028, delegated counties must report their lists, regional agency staff must compile lists for areas without delegation, and by February 15, 2028, the agency must submit a compilation and remediation recommendations to legislative committees. The agencies will seek input from the Minnesota Association of County Feedlot Officers and livestock groups.
• Delegated counties: For 2028 and 2029, the state agency cannot penalize delegated counties for performance issues caused by reassigning resources, unless a majority of the County Feedlot Officers association approves penalties.
• Funding and appropriation: The bill provides funds from general and environmental trust funds to implement the financial assurance requirements, compile the abandoned-storage list, support inspections, fund training for county officers, and cover related administrative costs (one-time and ongoing in fiscal years 2027–2028).

Significant Changes to Existing Law

• Adds a new subdivision requiring financial assurance (7f) to cover closure costs for large feedlots (1,000+ animal units) before permit issuance or renewal.
• Adds a new subdivision defining and requiring annual compilation of abandoned manure storage areas (7g), separate from feedlot inventories (7b), and clarifying interpretations and compliance.
• Establishes a phased-in compliance schedule linked to the reissuance of the NPDES general permit (MNG440000) and sets annual compliance targets.
• Creates new reporting and data-collection obligations for counties and the Pollution Control Agency, with specific timelines and a compiled remediation plan for abandoned storage areas.
• Imposes a new framework for penalties involving delegated counties, with protections during the initial delegation years and conditions for penalties requiring association approval.
• Allocates specific funding to state and local entities for implementing financial assurance, conducting inspections, compiling lists of abandoned areas, and providing training.

Terminology and Concepts Highlight (Key Terms from the Bill)

• financial assurance
• closure costs
• feedlot
• animal units (AU)
• manure storage area
• abandoned manure storage areas
• closure requirements
• financial assurance instrument
• not dischargeable through bankruptcy
• notice of cancellation (120 days)
• current dollar values
• cost estimates
• oversight/third-party implementation
• National Pollutant Discharge Elimination System (NPDES) general permit
• MNG440000
• delegated counties
• county feedlot officer
• Pollution Control Agency (PCA)
• Minnesota Association of County Feedlot Officers (MACFO)
• remediation recommendations
• abandoned storage area reports
• environmental fund
• one-time appropriation
• training funding

Relevant Terms financial assurance, closure costs, feedlot, animal units, manure storage area, abandoned manure storage areas, closure requirements, not dischargeable in bankruptcy, 120 days notice, NPDES, MNG440000, delegated counties, county feedlot officer, Pollution Control Agency, MACFO, remediation, cost estimates, current dollar values, third-party consultation, verification of funds, inspection funding, environmental fund, general fund, appropriation, training.