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Minnesota amends water fee structure for large projects effective January 2026

April 28, 2025 | Senate Bills, Introduced Bills, 2025 Bills, Minnesota Legislation Bills, Minnesota


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Minnesota amends water fee structure for large projects effective January 2026
On April 28, 2025, the Minnesota State Legislature introduced Senate Bill 2077, a significant piece of legislation aimed at addressing water management and environmental protection in the state. The bill proposes several key amendments to existing statutes concerning water appropriation, permit fees, and the management of closed landfills.

One of the primary objectives of Senate Bill 2077 is to establish a more structured fee system for water usage, particularly for projects requiring substantial water resources. The bill stipulates that projects needing over 100 million gallons of water annually will incur fees designed to cover the costs of environmental reviews and project evaluations. Specifically, the application fee for water appropriation permits will increase from $150 to $600, while fees for dam construction or repair permits will range from $1,200 to $12,000, depending on the nature of the project. These changes are intended to ensure that the costs associated with water management are adequately funded and that environmental considerations are prioritized.

Additionally, the bill introduces a surcharge for municipalities that exceed their water usage during peak months, specifically August and September, compared to January usage. This provision aims to encourage more sustainable water use practices among municipalities, particularly in light of increasing concerns over water scarcity and environmental sustainability.

Senate Bill 2077 has sparked notable discussions among lawmakers and stakeholders. Proponents argue that the increased fees and surcharges are necessary to fund critical environmental protections and to promote responsible water usage. However, some opponents express concerns that the higher costs could disproportionately impact smaller municipalities and businesses, potentially leading to economic strain.

The bill also includes provisions for the establishment of a Closed Landfill Investment Fund, which aims to manage funds for the long-term maintenance and monitoring of closed landfills, ensuring that environmental risks are mitigated over time.

As the bill progresses through the legislative process, its implications could be far-reaching. Experts suggest that if passed, Senate Bill 2077 could set a precedent for stricter water management policies in Minnesota, potentially influencing similar legislation in other states. The bill is set to take effect on January 1, 2026, if approved, marking a significant step in Minnesota's efforts to enhance its environmental stewardship and water resource management.

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