SF3852

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