Minnesota Pollution Control AgencyFY2020-2021 Budget

House Environment & Natural Resources Finance Division

February 28 and March 5, 2019

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• $50,000 ongoing from Highway Users Tax Distribution Fund from $25 increase in EV registration

• $50,000 ongoing from Highway Users Tax Distribution Fund from $25 increase in EV registration

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MPCA Mission: Protect and improvethe environment and human health 2

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Key priorities:

• Efficiency and due diligence

• Stakeholder engagement and communication

• Statewide effort to address climate change

MPCA Organizational Structure

Six Regional Offices:

Duluth

Detroit Lakes

Brainerd

Marshall

Mankato

Rochester

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Leading through Science

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• Established in 1967

• Medium-sized agency (about 900 FTE)

• Low turnover rate (2.5%)

• 48% women

• 70% of staff are scientists

• Engineers

• Hydrologists

• Soil Scientists

• Chemists

• Biologists

• Environmental Specialists

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MPCA Statutory authority

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State Laws 229 state laws (not including appropriations) apply to the MPCA and direct program operations.

Delegatedauthority for federal laws (US EPA):

Air programs: Outdoor air monitoring, permitting, air toxics, compliance & enforcement, regional haze, rules, etc.

Water programs: Monitoring, permitting, TMDL, enforcement and compliance, stormwater, feedlot, etc.

Land programs: Solid waste, hazardous waste monitoring & enforcement, Resource Conservation and Recovery Act (RCRA), etc.

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MPCA Organizational Structure

Commissioner’s Office

Operations Environmental Analysis & Outcomes

Resource Management & Assistance

Remediation Watershed MunicipalIndustrial

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Budget Priorities

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FY 2020-2021 Governor’s RecommendationsBudget Initiative General

FundEnvironmental

FundRemediation

FundCLIF Other

MiscClean Water

Business Friendly Data Services 1,600

St. Louis River Area of Concern 484

Climate Outreach and Engagement 250

EIS for Karst Groundwater Contaminants 2,000

Vapor Intrusion and Contaminants of Emerging Concern 1,210

Streamlined Water Policy and Permitting 671

Electric Vehicle Infrastructure 1,500 100

Food Waste Reduction 1,500

Recycling Market Development 800

Air Appropriation Increase 774

Extend Availability of Freeway Landfill Appropriation 1,622

Extension of PFA Assistance Appropriation 373

Clean Water Fund Request 46,910

Legal Costs 1,638

Railroad and Pipeline Safety Assessment Reinstatement 500

TOTAL 6,888 4,702 1,210 1,622 600 46,910 9 ITI

Business-friendly data services

• Accelerate placement of our 400+ applications and services online

• Benefits permit holders, city staff, citizens, consultants, regulated parties

• MPCA receives average 525 data requests per month

• Online services save time and money• Maintain 2 FTE and add 2 FTE• $800,000 / year / ongoing• Environmental Fund

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St. Louis River Area of Concern

One slide for each, as did MDH budget

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• Continue to leverage $47.2 M federal funding (GLRI)

• Maintains 4 FTE for cleanup at 10 sites

• Coordination, technical analysis, project management

• Maintains 4 FTE• $484,000 / Env Fund / FY21• Tails: $363,000 / year in the

FY22-23 biennium

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Climate outreach and engagement

• A series of public meetings statewide

• Communities, businesses, youth, state & local government leaders, NGOs

• Goal: Act strategically on climate change:• build on successes,• understand local needs,• forge a green economy

• $250,000 FY20 only / 0.5 FTE• General Fund 12

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Environmental Impact Statement for karst groundwater contamination

• Karst Region is geo-sensitive for water quality

• MDA’s Township Testing Program: Many private wells above health limit for nitrate

• This study will inform project review going forward

• NOT a permit moratorium• EQB and other state agencies involved• 0.75 FTE at MPCA; 1 FTE at EQB• $2 million / GF / FY20 only

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Vapor intrusion and contaminants of emerging concern

• Accelerate review statewide for vapor intrusion and groundwater contamination at: • 2,055 closed Superfund sites• 110 closed landfill sites – PFAS, etc.

• Moves completion at Superfund sites to FY28 (instead of current FY61)

• 5 new FTE (3 for Superfund, 2 for closed landfill)

• $605,000/year from Remediation Fund

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Streamlined water policy and permitting

• Based on work of 2018 Water Fee Advisory committee: • Water fees = at least 30% agency costs• 4-year phase in of new water fees• Except: 6 year phase in for feedlot fees• Tie city stormwater fee to population

• Authorizes MPCA to spend funds from fee increases • Extends thru 2021 technical assistance funding

appropriated in 2017 for PFA projects• 1.8 FTE in FY20; 3 FTE cumulative end of biennium• $223,000 in FY21 and $448,000 in FY22• Environmental Fund 15

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Electric vehicle infrastructure

• Accelerate placement of EV infrastructure statewide

• Both Fast and Level 2 charging stations• Meets strong demand for EV chargers• ZERO FTE - dollars added to existing

program• $1.5 million General Fund FY20 one-

time• $50,000 ongoing from Highway Users

Tax Distribution Fund from $25 increase in EV registration

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Food Waste Reduction

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• Food waste is 30% of our waste stream• Proposal will divert food waste away

from landfills by:• New food rescue (both retail and

prepared food) & food waste prevention grants

• Remove barriers to expanding organics recycling programs (e.g. addressing PFAS)

• Analysis of emerging technologies (e.g. anaerobic digestion)

• 0.5 FTE• $750,000 / year / ongoing• General Fund

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Recycling market development

• Grants to develop new value-added and other businesses to spur growth in recycling markets• Match to be required• Pay for costs that banks

and lenders generally don’t cover

• Zero FTE• $400,000 / year/ ongoing• Environmental Fund

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Air appropriation increase

• What it does• How much it costs

• Federal Clean Air Act requirement since 1990s

• Air emissions fees must cover the cost of issuing permits

• Each biennium, inflationary increase in costs must be authorized

• Maintains existing levels of service in air program

• $258,000 in FY20• $516,000 in FY 21• Environmental Fund 19

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Extend availability of Freeway Landfill appropriation

• Extends the availability of a 2017 $3 million appropriation from June 30, 2019 through FY21.

• Needed due to delays at site• Funds used for feasibility

studies, engineering, design• Funding request for cleanup

anticipated in 2020 Session

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Extension of PFA assistance appropriation

• Extends a 2016 appropriation for $486,000 through FY 21.

• Currently, these funds cancel on June 30 2019.

• Funds provide technical assistance and review of municipal water infrastructure projects

• Additional work needed to get new, higher level of PFA bonding out the door

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Legal costs/Railroad & Pipeline Safety Assessment

• Two transfers from other agencies

• $1,638 million from DNR for legal costs related to defending NorthMet, etc., permits

• $500,000 from DPS to carry out duties under Chapter 115E related to emergency preparedness and response activities

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Minnesota Pollution Control Agency

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Budget For Oiae Minnesota

Biennial comparison

FY2018-FY2019Recommended

FY2020-2021Changeas $$$

Changeas %

General 14.5 20.3 5.8 40.0%

Clean Water 52.2 46.9 (5.3) (10.2%)

Environmental 166.1 170.4 4.3 2.6%

Remediation 218.1 343.5 125.4 57.5%

Federal 40.6 44.7 4.1 10.1%

Special Revenue 60.7 59.7 (1) (1.6%)

Closed Landfill Investment 1.4 5.2 3.8 271.4%

Other 45.3 36.4 (8.9) (19.6%)

Total Recommendation 598.9 727.1 128.2 21.4%

Total of settlements and appropriation extensions (160.4) (285.6) (125.2)

Agency Total without settlements and appr extensions 438.5 441.5 3.0 0.7%

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FY20-21 Recommended Budget by fund: $727.1M

General $20.3M, 3%

Clean Water $46.9M, 7%

Environmental $170.4M

23%

Remediation $343.5M

47%

Federal $44.7M, 6%

Special Revenue: $59.7M, 8%

Other $36.4M, 5%

Closed Landfill Investment $5.2M, 1%

Includes $280.5M of 3M Settlement

Includes $15.6M of VW Settlement

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FY 20-21 Environment Fund receipts: $210.2M

Tax on garbage is the largest source of revenue, 63% of total receipts.

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Solid Waste Management Tax, $127.0 M, 60%

Fees on Regulated Parties, $53.9 M, 26%

Metropolitan Landfill Abatement Fee,

$5.5 M, 3%

Motor Vehicle Transfer Fee, $20.0 M, 10%

Interest, Other Receipts, $0.6M, 0%

Env Enforcement Penalties , $3.1 M, 1%

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FY 20-21 Environmental Fund expenditures: $210M

Env Analysis and Outcomes, $23.9 M, 11%

Industrial, $28.3 M, 13%

Municipal, $15.3 M, 7%

Operations, $10.6 M, 5%

Remediation, $1.9 M, 1%

Resource Mgmt. and Assistance, $71.9 M, 34%

Watershed, $14.9 M, 7%

Environmental Quality Board, $0.4 M, 0%

Other State Agencies, $2.6 M, 1%

Transfer to Remediation Fund, $40.0 M, 19%

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FY 20-21 Remediation Fund receipts: $352.1M

Transfer from Environmental Fund, $40.0 M, 11%

Transfer from Petroleum Fund, $23.3 M, 7%

Water Quality and Sustainability Account (3M Settlement) and Interest, $278.0 M,

79%

Fees, Cost Recovery, Other, $3.7 M, 1%

Metro Landfill Abatement Fee, $3.0 M, 1%

DNR Natural Resource Damages, $2.5 M, 1%

Penalties, $0.2 M, 0%

Dry Cleaner Fees, $1.3 M, 0%

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FY 20-21 Remediation Fund expenditures: $362.3M

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MPCA Land Programs, $71.7 M, 20%

Dept. of Natural Resources, $15 M, 4%

3M Settlement,$268.0 M, 74%

Dept. of Agriculture, $3.9 M, 1%

Dept. of Employ. & Econ. Dev., $1.4 M, 0%

Dry Cleaner, $1.3 M, 0%

Dept. of Health, $.5 M, 0%

Attorney General, $.5 M, 0%

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FY 2020-21 proposed budget by division: $727.1M

EAO7%

IND 5%

MUN 5%

Ops 11%

REM 49%

RMAD 15%

WAT8%

0%Environmental Analysis and Outcomes Division: $52.5M 7%

Industrial Division: $38.2M 5%

Municipal Division: $32.1M 4%

Operations Division: $77.3M 11%

Remediation Division: $356.1M 49%

Resource Management and Assistance Division: $108.8M 15%

Watershed Division: $59.6M 8%

Environmental Quality Board: $2.5M

30 IT“

Questions?

Minnesota Pollution Control Agency

31

Budget For Oiae Minnesota

MPCA Organizational Structure

Commissioner’s Office

Operations Environmental Analysis & Outcomes

Resource Management & Assistance

Remediation Watershed MunicipalIndustrial

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Remediation Division

• Cleanups: Investigate, mitigate risk, and clean up and/or provide long-term care for contaminated properties:

• Carry out these activities when there is no viable responsible party

• Coordinate St. Louis Rive Area of Concern cleanup project

• Brownfields: Oversee and assist in safe redevelopment and reuse of contaminated properties by third parties

• Closed Landfills: Manage 110 closed landfill sites statewide to protect against and mitigate water contamination and gas explosion risks

• Emergency Response: Protect Minnesotans from hazards caused by spills and assist with natural disaster recover efforts

33 ITI1

Remediation Division funding

$0

$50

$100

$150

$200

$250

$300

$350

$400

FY2018-2019 FY2020-2021

Mill

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General Environmental Remediation

Federal Special Revenue Other

Closed Landfill Investment

34 I1“

Watershed Division

• Build local capacity to restore and improve the environment

• Work with local partners to develop Watershed Restoration and Protection Strategies (WRAPS), including Total Maximum Daily Loads (TMDLs)

• Jointly oversee management of Feedlots with County Feedlot Officers

• Programs and services are managed and delivered through regional offices

35 ITI1

Watershed Division funding

$0

$10

$20

$30

$40

$50

$60

$70

$80

FY2018-2019 FY2020-2021

Mill

ion

s

General Clean Water Environmental Remediation Federal Special Revenue Other

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Operations Division

• Manages resources (people, dollars, and knowledge) to meet the agency's priorities

• Provides continuous improvement support for the agency

• Provide services that benefit all agency programs, including fiscal & contracting, human resources, data management, emergency response management, facilities & fleet, communications.

37 ITI1

Operations Division funding

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

FY2018-2019 FY2020-2021

Mill

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General Clean Water Environmental Remediation Federal Special Revenue Other

38 IT“

Environmental Analysis and Outcomes Division

• Monitors and evaluates the quality of Minnesota’s lakes, streams, groundwater and air

• Identifies environmental threats and impacts

• Helps set environmental goals, establish standards, and measure progress

• Performs risk assessments, air modeling, and effluent limit reviews to support regulatory programs

• Helps ensure the quality and availability of agency, permittee and partner-collected data

39 ITI1

Environmental Analysis and Outcomes Division funding

$0

$10

$20

$30

$40

$50

$60

$70

$80

FY2018-2019 FY2020-2021

Mill

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General Clean Water Environmental Remediation Federal Special Revenue Other40

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Resource Management and Assistance Division

• Regulating and managing solid waste

• Prevent or minimize negative impacts of citizens’ actions on public health and the environment in a way that benefits the environment, economy and society

• Offering a wide array of tools and resources to businesses, citizens, permittees, governments and other partners to prevent, manage and clean up pollution from waste

41 ITI1

Resource Management and Assistance Division funding

$-

$20

$40

$60

$80

$100

$120

FY2018-2019 FY2020-2021

Mill

ion

s

General Clean Water Environmental Remediation Federal Special Revenue Other

42 I1“

Industrial Division

• Provides core regulatory services for industrial facilities in the air and water quality, hazardous waste, and petroleum storage tank programs

• Supports jobs and economic growth state-wide while ensuring environmental protection

43 ITI1

Industrial Division funding

$-

$10

$20

$30

$40

$50

$60

$70

$80

FY2018-2019 FY2020-2021

Mill

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General Environmental Remediation Federal Special Revenue Other44

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Municipal Division

• Wastewater treatment facility permitting, inspections, technical assistance, and enforcement

• Review, approval, and prioritization of proposed wastewater treatment construction projects for funding through the Public Facilities Authority

• Strengthening local septic system programs through general financial support, training and certification programs, technical assistance, enforcement referral, and low income “fix-up” grants

• Municipal and construction stormwater permitting, inspections, technical assistance, and enforcement including an accelerated outreach program for newly permitted municipalities and those regulated through a TMDL

• Stormwater Manual/Wiki operation and updating (>7M hits since 4/2/13)

45 ITI1

Municipal Division funding

$-

$10

$20

$30

$40

$50

$60

$70

$80

FY2018-2019 FY2020-2021

Mill

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General Clean Water Environmental Federal Special Revenue Other46

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Questions?

Minnesota Pollution Control Agency

47

Budget For Oiae Minnesota

Environmental Quality Board

Will Seuffert, Executive Director

48

Budget For Oiae Minnesota

Mission: To enhance Minnesota’s environmental quality for current and future generations by leading interagency work to advance meaningful public engagement and facilitate informed decision-making on critical environmental issues.

Membership: 9 state agency heads and 8 citizens representing each Congressional District

Leadership: MPCA Commissioner Bishop, rotating assignment

Authority: 116C, 116D, 116G, 103A/103B

Strategic Interaction of Multiple State

Agencies

Public forum to engage in

environmental decision-making

Steward Minnesota’s

Environmental Review Process

What’s Our Role?

One Minnesota | eqb.state.mn.us49 ID

General Fund $2.162 M, Environmental Fund $0.386 M, Total $2.548 M

2018-19 Initiatives

• Environmental Review Oversight and Program Improvement: Rulemaking

• Governor’s Task Force on Wild Rice (E.O. 18-08, 18-09)

• Interagency Pollinator Initiative (E.O. 16-07)

• 25% by 2025 Public Engagement Process

• Energy and Environment Report Card

• Interagency coordination on climate change mitigation and adaptation

• Emerald Ash Borer Interagency Team50

m1 MINNGSOTAENVIRONMENTAL QUALITY BOARD

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2020-21 Initiatives

• Generic Environmental Impact Statement

• Environmental Congress: Fall 2019

• State Water Plan: Fall 2020

• Climate Change Planning and Engagement

• Environmental Review Oversight and Program Improvement: Rulemaking

• Continued support of ongoing initiatives

51

H“ MINNGSOTAENVIRONMENTAL QUALITY BOARD

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Environmental Quality Board

•General Fund $2.162 M

• Environmental Fund $0.386 M

• Total $2.548 M

52 ITI1

The End Questions?

Minnesota Pollution Control Agency

53

Budget For Oiae Minnesota