This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp Environmental Permitting Minnesota Pollution Control Agency’s Annual Permitting Efficiency Report August 1, 2015 Legislative charge Minn. Stat. § 116.03, subd. 2b. Report to Legislature The commissioner shall prepare an annual permitting efficiency report that includes statistics on meeting the goal in paragraph (a) and the criteria for Tier 1 and Tier 2 by permit categories. The report is due August 1 each year. For permit applications that have not met the goal, the report must state the reasons for not meeting the goal. In stating the reasons for not meeting the goal, the commissioner shall separately identify delays caused by the responsiveness of the proposer, lack of staff, scientific or technical disagreements, or the level of public engagement. The report must specify the number of days from initial submission of the application to the day of determination that the application is complete. The report must aggregate the data for the year and assess whether program or system changes are necessary to achieve the goal. The report must be posted on the agency's Web site and submitted to the governor and the chairs and ranking minority members of the house of representatives and senate committees having jurisdiction over environment policy and finance. Authors/Contributors Estimated cost of preparing this Jeff Smith Melissa Rauner report (as required by Minn. Stat. § 3.197) Nick Boeke Don Smith Lisa Thorvig John Morrill Total staff time: 100 hrs. $4,000.00 Paula Connell Walker Smith Production/duplication $100.00 Total $4,100.00 The MPCA is reducing printing and mailing costs by using the Internet to distribute reports and information to wider audience. Visit our website for more information. MPCA reports are printed on 100% post- consumer recycled content paper manufactured without chlorine or chlorine derivatives. Minnesota Pollution Control Agency 520 Lafayette Road North | Saint Paul, MN 55155-4194 | 651-296-6300 | 800-657-3864 | Or use your preferred relay service. | [email protected] This report is available in alternative formats upon request, and online at www.pca.state.mn.us. Document number: lrp-gen-11sy15 Contents Executive summary ............................................................................................................................1 Background .......................................................................................................................................3 MPCA’s Environmental permitting programs ......................................................................................4 Improvement efforts ..........................................................................................................................5 Data and graphs .................................................................................................................................6 Appendix A – Tier 1 and 2 permit categories .......................................................................................9 Appendix B – Tier 1 projects over 90 days, Tier 2 projects over 150 days, and reasons for delay ........ 11 Executive summary The mission of the Minnesota Pollution Control Agency (MPCA) is to protect and improve the environment and enhance human health. One of our most important jobs is to issue timely air, water, and land permits to Minnesota businesses, governmental units, and individuals. The requirements of these environmental permits are mandated by federal and/or state regulations and are subject to a rigorous public participation process. The MPCA receives between 3,000 and 5,000 permit applications each year. To support jobs and economic development in the state and enhance overall environmental protection, the MPCA’s policy is to work on applications for construction projects first. These “priority” projects typically require a new permit or significant modification of an existing permit. They may also be the most technically complex and potentially controversial projects. The remaining projects are generally routine permit re-issuances that do not require substantive changes or involve construction. These permits while still important are usually less time-sensitive to permittees. Permittees covered under these existing permits are allowed to continue to operate until such time as MPCA staff can be assigned to work on their permit reissuance. Since the Permitting Efficiency Law became effective on March 4, 2011, the MPCA has collected the permitting data required by the law. Previously, semi-annual reports were required. New legislation in 2014 changed the reporting requirement to an annual report due August 1 of each year. The legislation also established two categories for permits, with separate goals for permit issuance. Table 1 below summarizes permitting data only for the current review period, as required by law. Table 2 summarizes data going back to March 4, 2011, and is intended to provide a broader perspective. This is particularly important as most permits are issued for at least five years – sometimes longer. As such, many of the process improvements implemented by the MPCA today may not be evident for several years. It is, therefore, challenging to draw conclusions about the overall improvement of the MPCA’s permitting programs based on a short-term “snap shot.” Shorter time periods are influenced by such factors as changing or unresolved federal regulations and the economy – making it difficult to compare one review period to the next. The MPCA continues to make day-to-day changes with the goal of providing measureable, consistent, long-term improvements. Environmental Permitting: MPCA’S Annual Permitting Efficiency Report • August 1, 2015 Minnesota Pollution Control Agency 1 Table 1: July 1, 2014 – June 30, 2015 Priority Received Withdrawn Returned Complete Issued Issued Issued Pending Pending Pending (<=90, (>90, (<=90, (>90, 150) 150) 150) 150) Tier 1 Non- 215 6 12 197 182 181 1 15 13 2 Priority Tier 1 1190 1 0 1189 1135 1133 2 54 54 0 Priority Tier 2* Non- 2015 37 50 1928 1462 441 1021 466 341 125 Priority Tier 2* 1108 5 7 1096 1041 1028 13 55 42 13 Priority Grand 4528 49 69 4410 3820 2783 1037 590 450 140 Total Tier 1 priority applications resulting in permit issuance within 90 days: 1133 / (1189 – 54) = 99% Tier 1 total applications (priority and non-priority) issued within 90 days: 1314 / (1386-67) = 99% Tier 2* priority applications resulting in permit issuance within 150 days: 1028 / (1096-42) = 98% Tier 2* total applications (priority and non-priority) issued within 150 days: 1469 / (3024-383) = 55% *Tier 2 includes all applications July 1 through December 31, 2014 and Tier 2 applications January 1 through June 30, 2015 Table 2: March 4, 2011 – June 30, 2015 Priority Received Withdrawn Returned Complete Issued Issued Issued Pending Pending Pending (<=150) (>150) (<=150) (>150) Non- 5535 243 480 4812 4030 2134 1896 782 317 465 Priority Priority 9475 55 106 9314 9161 9017 144 153 91 62 Grand 15010 298 586 14126 13191 11151 2040 935 408 527 Total Priority applications resulting in permit issuance within 150 days: 9017 / (9314-91) = 98% Total applications (priority and non-priority) issued within 150 days: 11151 / (14126-408) = 81% When calculating the percent issued within the permit issuance goal the number of pending permits not issued and in house for less than the applicable 90-day or 150-day goal at the time of the report production are not included. While the MPCA is pleased with the overall results, especially the ability to continue issuing more than 90% of priority (construction) permits within the issuance goals, we continue to look at improvements including online permit applications. Environmental Permitting: MPCA’S Annual Permitting Efficiency Report • August 1, 2015 Minnesota Pollution Control Agency 2 Background This report results from concerns expressed about the length and uncertainty associated with regulatory processes, including environmental review and permitting. In 2010, the Legislature directed the Office of the Legislative Auditor (OLA) to review the environmental review and permitting programs of the Environmental Quality Board, the MPCA, the Minnesota Department of Natural Resources (DNR) and local units of government.* A range of businesses and elected officials suggested that the structure and process of permitting at that time was negatively impacting the busines s climate and economic growth in Minnesota. Permitting and environmental review process reform was identified by those raising concerns as an important step for Minnesota state government to facilitate job creation in the state. To address these concerns, Governor Dayton issued Executive Order 11-4 (EO11-04) on January 24, 2011. The Executive Order requires MPCA and DNR to adopt a 150-day goal for reaching a permit decision following the determination by the appropriate agency that the permit application is complete. This same goal is reiterated in Session Laws 2011, Chapter 4, codified in Minn. Stat. § 116.03 except that the law requires that the 150-day goal and indicates that the time begins upon the initial submission of an application instead of when the application is determined to be complete. This law is referred to as the Permitting Efficiency Law, and requires, among other things, the MPCA to determine, within 30 business days of receipt of a permit application,