Purpose

• This bill aims to change how large groundwater uses are regulated in Minnesota. It requires certain big users, especially data centers, to obtain their own water-use permits instead of relying on amended municipal permits. The intent is to protect public health, safety, and welfare and to promote water conservation and healthier watersheds.

Main Provisions

• Data center and large consumptive uses: For new or altered permits where the applicant is considered a data center (as defined in state law) and the expected or existing use exceeds 100,000,000 gallons per year, the Department must ensure protections for public health, safety, and welfare. It must consider technologies and practices that save water and protect watersheds, such as:
  • Water-efficient fixtures and practices
  • Recycling water before discharge
  • Partnering with local water utilities to use discharged water from the data center
  • Using reclaimed water
  • Installing closed-loop systems
  • Supporting water restoration and replenishment in local watersheds
• Aquifer testing: The commissioner may require an aquifer test under the relevant law (103G.287) if it’s necessary to ensure compliance with the above protections.
• Separation from municipal permits: A user proposing a new or modified permit for a new or additional industrial or commercial use must obtain its own water-use permit and may not rely on a modified municipal permit if:
  • The new or additional use would exceed 100,000,000 gallons per year, or
  • The use would exceed 50% or more of the municipality’s current authorized annual appropriation.
• Permit process and public involvement: Before issuing a permit, the commissioner must:
  • Prepare a draft permit and provide a notice and comment period
  • Post the draft on the state Department’s website
  • Allow at least 30 days for public comment
  • Notify the applicant, all registered interested parties, all municipalities within the same major watershed, and others upon request
  • Consider comments in deciding whether to issue the permit and what terms to include
  • Conduct an aquifer test if needed, and include test results in any related environmental review under chapter 116D
• Water-use conflict management: Water-use conflicts should be addressed as prescribed by Minnesota Rules part 6115.0740.1.

Reporting and Recordkeeping

• The bill updates how water use is tracked and reported:
  • Records must be kept for each installation, showing amounts appropriated or used
  • For uses exceeding the 100,000,000 gallons/year threshold, readings and total use must be reported by the 15th of each month for the previous month
  • For all other uses, records must be filed annually by February 15 of the following year
  • Reports must accompany the annual water-use permit processing fee
  • Reports must be submitted on forms provided by the commissioner

Significant Changes to Existing Law

• Shifts large groundwater users (notably data centers) away from relying on municipal permits and toward requiring their own separate water-use permits.
• Establishes a clear 100,000,000 gallons per year threshold to trigger heightened review, protections, and potential aquifer testing.
• Adds explicit requirements for water-conservation measures, water recycling, reclaimed water, and closed-loop systems as part of permit considerations.
• Strengthens public notification, comment opportunities, and aquifer data in environmental reviews related to permits.
• Adds more rigorous monthly or annual reporting for large and other uses, respectively.

Note on Data Center Focus

• The bill uses the term “data center” with a specific legal definition and applies enhanced permitting and conservation requirements to those projects when they involve very large water withdrawals.

Relevant Terms - water-use permit - data center - large groundwater user - consumptive use - public health safety and welfare - aquifer test - 100,000,000 gallons per year - recycled water - reclaimed water - closed-loop systems - water conservation - watershed health - Minnesota Rules part 6115.0740.1 - USGS Hydrologic Unit Code 8 watershed - municipal permit - environmental review (chapter 116D) - 103G.287 - 103G.271 - 103G.281 Subd. 3 - industrial or commercial uses - water restoration and replenishment