SF3852 (Legislative Session 94 (2025-2026))
Certain users of large amounts of groundwater requirement to apply for their own water-use permit instead of modifying an existing municipal permit
Related bill: HF3793
AI Generated Summary
Purpose
This bill tightens how large groundwater use, especially for data centers, is permitted in Minnesota. It requires new or increased water use for certain large-scale requires its own water-use permit (instead of relying on modifying an existing municipal permit) and sets protections to guard public health, safety, and watershed health.
Main provisions
- Data center focus: For new or modified water-use permits for a data center with proposed new or additional consumptive use exceeding 100,000,000 gallons per year, the department must ensure protections for public health, safety, and welfare, and reasonably consider water-conserving technologies and watershed health.
- Conservation and best practices: Permits must consider measures such as water-efficient fixtures, water recycling before discharge, partnering with local water utilities to reuse discharged water, using reclaimed water, installing closed-loop systems, and supporting water restoration in local watersheds.
- Water use conflicts: Address conflicts following Minnesota Rules part 6115.0740.1.
- Aquifer testing: The commissioner may require an aquifer test (as per existing law) if needed to ensure compliance with the conservation and protection requirements.
- Independent permits for large new/expanded uses: A user proposing a new or modified permit for a new or additional industrial or commercial consumptive use must apply for its own water-use permit and may not rely on a municipal permit modification if the use exceeds 100,000,000 gallons/year or equals 50% or more of the municipality’s current annual allocation.
- Public notice and comment: Before issuing a permit, the commissioner must publish a draft, provide at least 30 days for public comment, and notify the applicant, registered interested parties, municipalities within the same watershed (as defined by USGS Hydrologic Unit Code 8), and others upon request.
- Use of aquifer test results: If an aquifer test is conducted, its results must be considered in the environmental review process related to the permit.
- Data-center emphasis in watershed context: The rule requires consideration of watershed-scale impacts and public input, including how the permit interacts with local water management.
Process and reporting changes
- Permit drafting and review: The department must prepare a draft permit, publicly post it, allow a 30-day comment period, notify relevant parties, and consider comments before issuing the permit.
- Aquifer testing integration: Aquifer test results must be used to inform permit decisions and environmental review, when applicable.
- Reporting requirements:
- For installations with uses exceeding the threshold, monthly reporting of water use is required by the 15th day of the following month.
- For all other uses, annual reporting is required by February 15 of the following year.
- Reports must be submitted on forms provided by the department and accompany the annual water-use permit processing fee.
Significant changes to existing law
- Shifts large-scale groundwater uses (notably data centers) from relying on modified municipal permits to requiring separate water-use permits when the consumptive use is very large (≥100 million gallons/year or ≥50% of a municipality’s current allocation).
- Adds explicit requirements to consider water conservation technologies, recycling, reclaimed water, closed-loop systems, and watershed restoration as part of permit determinations.
- Expands public notification and participation in the permit process, including watershed-level notice and consideration of public comment.
- Integrates aquifer testing results into environmental review processes for permits that require such testing.
Relevant terms - groundwater - water-use permit - data center - consumptive use - 100,000,000 gallons per year - industrial or commercial consumptive use - municipal permit modification - aquifer test - Minnesota Rules part 6115.0740.1 - public health, safety, and welfare - water conservation - recycled water / reclamined water - closed-loop systems - watershed health / watershed - USGS Hydrologic Unit Code 8 (HUC-8) - environmental review under chapter 116D - draft permit / public comment period - permit processing fee - monthly reporting / annual reporting
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2026 | Senate | Action | Introduction and first reading | ||
| February 26, 2026 | Senate | Action | Referred to | Environment, Climate, and Legacy |
Citations
[
{
"analysis": {
"added": [
"Requires monthly reporting for high-usage water appropriations by the 15th of the month.",
"Requires annual reporting for all other uses by February 15.",
"Reporting must be on forms provided by the commissioner.",
"References the annual permit processing fee in 103G.271, Sec.2."
],
"removed": [],
"summary": "Modifies reporting requirements for water use under Subd.3, requiring records of water appropriated/used to be kept for each installation and reported to the commissioner with a two-track schedule: monthly reporting for uses that meet the thresholds in 103G.271, subdivision 5b, paragraph b (by the 15th of the following month) and annual reporting for all other uses (by February 15 of the following year), on forms provided by the commissioner; links to the annual water-use permit processing fee described in 103G.271, Sec.2.",
"modified": [
"Subd.3 reporting framework updated from a single annual reporting requirement to a two-track schedule (monthly for high-use, annual for others) with specified reporting forms."
]
},
"citation": "103G.281",
"subdivision": "subd.3"
},
{
"analysis": {
"added": [
"Requires that permits for large water-use data centers meet specific conditions to protect health, safety, and welfare.",
"Promotes water conservation measures (e.g., efficient fixtures, recycling, closed-loop systems).",
"Requires aquifer testing (103G.287) if necessary.",
"Requires new or modified permits for data centers to be issued via water-use permits rather than municipal permit modifications when thresholds are exceeded.",
"Requires drafting of permit, notice, and comment period; consideration of comments; environmental review alignment."
],
"removed": [],
"summary": "Adds data-center-specific permit conditions for large water use under Subd.5b, including defined data centers (per 216B.02, subd.11), ensuring public health, safety, and welfare protections, and promoting water conservation; establishes aquifer testing and permit procedures, notice and comment requirements, and environmental review considerations.",
"modified": [
"Creates a data-center-specific pathway within the large-water-use framework, tying permit issuance to explicit conservation and testing requirements and independent permit processing."
]
},
"citation": "103G.271",
"subdivision": "subd.5b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provides the definition of a data center used for implementing the data-center-specific provisions in 103G.271, subd.5b.",
"modified": [
"Introduces data center as defined by 216B.02, subd.11, to identify entities subject to the new Section 103G.271, subd.5b requirements."
]
},
"citation": "216B.02",
"subdivision": "subd.11"
},
{
"analysis": {
"added": [
"Provision that an aquifer test may be required under 103G.287 for certain water-use permits."
],
"removed": [],
"summary": "Authorizes (when determined necessary) an aquifer test under 103G.287 to ensure compliance with permit conditions related to large-water-use data centers.",
"modified": [
"Links aquifer testing to compliance with data-center-related permit conditions."
]
},
"citation": "103G.287",
"subdivision": ""
},
{
"analysis": {
"added": [
"Ensures aquifer test results are considered in environmental review under Chapter 116D."
],
"removed": [],
"summary": "References environmental review process under Minnesota Statutes Chapter 116D in relation to aquifer testing and permit issuance.",
"modified": []
},
"citation": "116D",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cross-reference to Section 2 of 103G.271, which establishes the annual water-use permit processing fee referenced in Subd.3’s reporting/fee context.",
"modified": [
"Explicitly notes that the annual permit processing fee is defined in 103G.271, Sec.2, tying fee collection to permit processing."
]
},
"citation": "103G.271",
"subdivision": "sec.2"
}
]Progress through the legislative process
In Committee