The 1998 Legislature enacted provisions relating to feedlots, including funding for an overall study of feedlot environmental issues, regulation of large feedlots, and financial assistance for the upgrade of existing feedlots. Provisions relating to feedlots were contained in the State Government Supplemental Budget Bill (Chapter 366), the Environment, Natural Resources and Agriculture Supplemental Budget Bill (Chapter 401), and the Capital Budget Bill (Chapter 404).

Generic Environmental Impact Statement (GEIS) on Feedlots

Chapter 366 appropriated $1.2 million to the Office of Strategic and Long-Range Planning to provide funding for the Environmental Quality Board (EQB) to begin preparation of the GEIS on feedlots. The GEIS must be prepared, under the direction of the EQB, to examine the long-term effects of the livestock industry on the economy, environment, and way of life of Minnesota and its citizens. To advise the EQB on the scope and content of the GEIS, the EQB must establish the livestock industry environmental steering committee consisting of representatives of the livestock industry, environmental interests, and other stakeholders.

County Feedlot Grants

Chapter 401 appropriated $350,000 from the General Fund in FY 1999 for grants to counties that accept delegation of the state feedlot permit program. This is in addition to $855,000 appropriated by the 1997 Legislature for the same purpose in FY 1999.

Cost-Share Contracts for Water Quality Management on Feedlots

In Chapters 401 and 404, the 1998 Legislature appropriated a total of $2 million from the General Fund to the Board of Water and Soil Resources for water quality cost-sharing contracts on feedlots. Priority must be given to feedlot operators who have received a notice of violation and for feedlots in counties that are conducting level two or level three feedlot inventories.

Agriculture Best Management Practices Loans

Chapter 404 appropriated $9 million to the Public Facilities Authority for deposit in the State Revolving Fund for use in the agricultural best management practices loan program. The agricultural best management practices loan program provides low-interest loans to farmers for practices that prevent or mitigate nonpoint sources of pollution. One of the purposes for which the loans may be used is waste management system improvement on feedlots.

NPDES Permit Requirements

Chapter 401 established standards for when the Pollution Control Agency (PCA) must issue a federal National Pollutant Discharge Elimination System (NPDES) permit for feedlots over 1,000 animal units according to the following schedule:

(1) For applications received beginning on April 22, 1998, the PCA must issue individual NPDES permits for newly constructed or expanded feedlot facilities with 2,000 or more animal units;

(2) For applications received beginning on January 1, 1999, the PCA must issue individual NPDES permits for newly constructed or expanded feedlot facilities with between 1,000 and 2,000 animal units that are identified as a priority by the Commissioner of the PCA;

(3) By October 1, 1999, the PCA must issue a general NPDES permit for newly constructed or expanded feedlot facilities with between 1,000 and 2,000 animal units that are not identified as a priority; and

(4) By January 1, 2001, all existing feedlots with 1,000 animal units or more must be issued an individual or general NPDES permit.

Chapter 401 also appropriated $300,000 from the General Fund in FY 1999 to the PCA for issuing NPDES permits.

Animal Waste Technicians

After March 1, 2000, a person who manages or applies animal waste for hire must have a commercial animal waste technician license. Persons managing waste on land owned by the person's employer or persons managing or applying animal waste under the supervision of a licensed animal waste technician are exempt from the licensing requirements.

By January 20, 1999, the Commissioner of Agriculture, in consultation with the Commissioner of the PCA and statewide farm organizations, must submit a report to the House and Senate policy committees with jurisdiction over agriculture and the environment with recommendations on noncommercial manure applicator training and certification.

Chapter 401 also appropriated $107,000 from the General Fund for development of the commercial animal waste technician license program.

Bad Actor Provision

The PCA was granted authority to refuse to issue or authorize the transfer of an animal feedlot permit if the PCA determines that the permit applicant does not possess sufficient expertise and competence to operate the facility in conformance with applicable laws. The PCA may take into account past experience of the applicant, the expertise of the applicant, the past record of the applicant, and the past record of criminal convictions of the applicant. Prior to refusing to issue or transfer a permit, the PCA must provide the applicant the opportunity to respond to the findings. If the PCA denies a permit, the applicant may request a hearing under the Administrative Procedures Act.

Liquid Manure Storage Structure Plans

Until new rules are adopted by the PCA that provide for plans for manure storage structures, all plans for liquid manure storage structures must be prepared or approved by a registered professional engineer or a USDA Natural Resource Conservation Service employee. This provision extends the current requirement in PCA rule for manure structures of 500,000 gallons or more to liquid manure storage structures that hold less than 500,000 gallons.

Feedlot Inventory Requirements

A state agency or local government unit conducting an animal feedlot inventory must publicize the inventory in a newspaper of general circulation and in other media as appropriate. Prior to beginning an inventory, a local government unit must hold at least one public meeting within its boundaries. A state agency must hold at least four public meetings prior to beginning a feedlot inventory. The notices and public meetings must provide information on the dates the inventory will be conducted, the inventory procedure to be used, and how the information will be provided to the public.

Open-Air Swine Lagoon Prohibition

Until June 30, 2000, the PCA and counties are prohibited from issuing a feedlot permit for the construction of an open-air, earthen, or flexible membrane-lined swine waste lagoon. This prohibition does not apply to repair or modification related to environmental improvement of an existing lagoon.

Other Provisions

Chapter 401 also: (1) requires updates in the feedlot permit rules and environmental review rules relating to feedlots; (2) requires counties and towns that have adopted animal feedlot ordinances to supply copies of the ordinances to the Commissioner of Agriculture; (3) requires reports on hydrogen sulfide exposure standards in livestock confinement facilities and on animal waste liability; (4) allows for manure testing laboratory certification; (5) changes the standard for animal burial; (6) provides $200,000 in General Fund loan financing for demonstration projects using farm manure digester technology; and (7) appropriates $292,000 to the University of Minnesota for alternative and sustainable hog production facilities and programs.