Agriculture commissioner seeks authority to invest and hold easements for mitigation fund

Agriculture Commissioner Doug Goehring testified in support of House Bill 1400, which would (1) allow the state treasurer to invest monies in the Environmental Impact Mitigation Fund and deposit income back into the fund, and (2) authorize the commissioner to enter into conservation easements or leases to carry out mitigation activities related to energy projects.

Goehring told the House Energy and Natural Resources Committee the mitigation program was created in the prior legislative session to provide a framework for addressing indirect environmental impacts of energy facilities; the proposed bill, he said, would clarify investment authority and allow the department to hold easements, perform maintenance and audit mitigation over time. He proposed amendments to (a) have the state treasurer manage investments (rather than the state investment board), (b) limit returns to simple interest, and (c) make participation permissive for transmission facilities so applicants retain flexibility to meet federal requirements like voluntary recommendations from the U.S. Fish and Wildlife Service.

Industry and conservation witnesses generally supported the bill with amendments. Carly McLeod of Minn‑Kota Power Cooperative said the permissive language for transmission and other energy conversion facilities was requested after stakeholder discussions; Jean Shaffer of Basin Electric explained that a mandatory requirement to use the mitigation fund could conflict with federal mitigation conditions that specify recipients. Mark Staples of The Nature Conservancy recommended an amendment requiring easements purchased with fund dollars to be held at least for the duration of adverse impacts and suggested annual reporting to build public confidence.

Representative Brandenburg introduced the bill on the committee floor and said he stood with the commissioner. Committee members pressed Goehring on distinctions between direct and indirect impacts for wind and other energy conversion projects; Goehring said direct impacts remain the responsibility of the applicant and landowner, and that the mitigation fund was created to address indirect impacts when they arise. He also described prior implementation tasks: creating program mechanics, hiring outside environmental and wildlife scientists, and developing a framework to evaluate mitigation needs.

The hearing record contains no opposition testimony and the committee closed the hearing on House Bill 1400. The transcript does not record a committee vote on the bill during that session.