HF4740
Financial assurance required for feedlot permits, inventories and reports required, and money appropriated.
Legislative Session 94 (2025-2026)
Related bill: SF4976
AI Generated Summary
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)
Past committee meetings
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Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 26, 2026 | House | Action | Introduction and first reading, referred to | Environment and Natural Resources Finance and Policy |
Meeting documents
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Citations
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