Bill
HF 4740
Requires large feedlots (≥1,000 units) to have financial assurance for closure costs and report abandoned manure storage areas, with a phased, funded compliance plan.
HF4740 Summary (Minnesota, 2025-2026)
Purpose and intent
- Establish financial assurance requirements for large feedlots (capacity of 1,000 animal units or more).
- Require inventories and annual reports related to abandoned manure storage areas.
- Create a phased compliance approach and allocate funding for implementation, training, and oversight.
- Provide a framework for evaluating closure costs and ensuring funds are available for site closure and remediation.
Key provisions
1) Financial assurance for feedlots (new §116.07, subdiv. 7f)
- Applicability: Before the state issues or renews a feedlot permit with a capacity of 1,000 or more animal units.
- Requirements on applicant:
- Submit proof of financial assurance adequate to cover closure costs for the feedlot and manure storage area, with terms approved by the Pollution Control Agency (PCA) commissioner.
- The state may consult outside experts for evaluating the financial assurance; the applicant pays related costs.
- Ongoing requirements for permittees:
- Maintain sufficient financial assurance for the permit duration.
- Ensure funds are available and payable to the commissioner if the permittee is not in full compliance with closure requirements.
- Ensure the instrument is fully valid, binding, enforceable, and non-dischargeable in bankruptcy.
- Provide at least 120 days’ notice before cancellation of the financial assurance instrument.
- Closure cost estimation:
- Permit applicant must submit a documented, current-dollar estimate of closure costs for feedlots and manure storage areas, excluding salvage or market value of manure, animals, structures, etc.
- The commissioner may modify estimates and consult qualified experts; applicant pays for these consultations.
2) Abandoned manure storage areas (new §116.07, subdiv. 7g)
- Annual listing obligation: The commissioner must compile a list of abandoned manure storage areas in the state.
- Definition emphasis: Abandoned areas are those previously registered and either permanently ceased operation (not in compliance with closure rules) or unused for at least 3 years.
- Note: These lists are not considered feedlot inventories for purposes of 116.07, subdiv. 7b.
3) Compliance schedule (new §FEEDLOT FINANCIAL ASSURANCE REQUIREMENTS COMPLIANCE SCHEDULE)
- The PCA may phase in the new financial assurance requirements during the next reissuance of the EPA NPDES general permit for concentrated animal feeding operations (MNG440000).
- A schedule will require 250 permittees per year to come into compliance, starting with operations with the largest number of animal units.
4) Manure storage area reporting timeline (new §MANURE STORAGE AREA REPORTS REQUIRED)
- December 15, 2026: PCA must develop a county-by-county list of potentially abandoned manure storage areas using registration data.
- January 15, 2028: Delegated counties must report abandoned manure storage areas within their county to the PCA via the county feedlot officer.
- January 15, 2028: PCA regional feedlot staff compile lists for counties without delegation.
- February 15, 2028: PCA must submit a compilation report and list of abandoned areas to legislative committees, with remediation recommendations. Input sought from the Minnesota Association of County Feedlot Officers and livestock associations.
- The “abandoned” definition aligns with §116.07, subdiv. 7g.
- These reports/lists are explicitly not feedlot inventories under subdiv. 7b.
5) Delegated counties protections (new §SUBD. 2)
- 2028-2029 delegation years: PCA must not penalize delegated counties for performance issues caused by reallocating county feedlot resources to meet new requirements.
- Penalties allowed only if approved by a majority of the Minnesota Association of County Feedlot Officers’ board.
6) Appropriations (new §APPROPRIATIONS)
- General Fund:
- $500,000 in FY2027 to PCA for implementing feedlot financial assurance requirements and compiling the abandoned storage areas list (7f and 7g).
- $700,000 in FY2027 to PCA for distributing to delegated counties for inspections and abandoned site reporting (one-time, available through 6/30/2028).
- $250,000 in FY2027 to PCA for a grant to the Minnesota Association of County Feedlot Officers for training on state requirements and best practices.
- Environmental Fund:
- $500,000 in FY2027 to PCA to implement financial assurance requirements and abandoned storage area list (7f and 7g).
Effective and practical notes
- Targeted scope: Large feedlots (≥1,000 animal units) face financial assurance requirements and annual closure-cost planning.
- Oversight and costs: The PCA has authority to approve instruments and adjust cost estimates; permittees bear evaluation and consultation costs.
- Data and remediation focus: Regular reporting on abandoned manure storage areas aims to identify and address potential environmental risks, with a multi-year reporting timeline and coordination with counties and industry groups.
- Phase-in approach: A structured compliance schedule helps manage the transition and resource needs for both state and local agencies.
Interested readers should note that this summary reflects the bill text as introduced in HF4740 (2025-2026) and may be amended during the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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