Working group strikes agreement on environment and natural resources finance, policy package

In this tight two-year budget cycle, it’s not surprising that several budget agreements have turned to raising fees or adding surcharges to state services to meet their lean targets for the 2026-27 biennium.

That includes environment and natural resources budget and policy.

An agreement would increase the aquatic invasive species surcharge for watercraft from a flat $10.60. Beginning Jan. 1, 2026, surcharges would range from $14 to $62 depending on the size, type and use of the watercraft.

The DNR would also increase large groundwater-use permit fees and water appropriation permit application fees, including a rise from $150 to $600 for a business to apply for a permit to appropriate groundwater.

On Thursday, the environment and natural resources working group walked through the agreement that shows those fee increases and other policy changes, plus an agreed-upon spreadsheet outlining proposed appropriations.

[MORE: View a summary of the agreement, full tracking spreadsheet, working group spereadsheet agreement]

Rep. Peter Fischer (DFL-Maplewood), co-chair of the House Environment and Natural Resources Finance and Policy Committee, said it was not easy to find compromises on many items in the bill and the final product will not totally please everyone.

“We dealt with some really tough issues out there. This a bill that’s got some wins for everybody, and some things that we’re all uncomfortable with, but it’s a bill that all of us can vote for,” he said.

No official action was taken. The agreement is to be introduced as a bill in a forthcoming special session and passed by both bodies before it can go to the governor for his signature.

The bottom line

The total General Fund spending would be $429.4 million in fiscal years 2026-27.

In addition to raising fees, the agreement would make several cuts to ongoing programs in state agencies, boards and departments to meet a negative $6.5 million target given the group in the May 15 leadership global budget agreement. That includes canceling a $5 million fiscal year 2024 appropriation to the DNR for enhancing prairies and grasslands and restoring wetlands on state-owned wildlife management areas.

But some game and fishing license fees would be lowered, including those for veterans and disabled veterans.

Policy changes

Much of the policy changes proposed in the bill focus on reforming the permitting processes used by the Pollution Control Agency by making them more efficient and speedier for businesses needing environmental permits to operate in the state.

To that end, the bill would:

• require the PCA’s annual permitting efficiency report to focus on the more complicated Tier 2 permits, and include additional information about permits that have not met the statutory goal, as well as other modifications;
• require the PCA to give permit applicants five business days to remedy identified deficiencies in permit applications; and
• limit who could file discretionary environmental assessment worksheets to those residing in the county in which a proposed project will be undertaken or in one or more adjoining counties.

The agreement would also make statutory changes to the Environment and Natural Resources Trust Fund grant programs, managed by the Board of Water and Soil Resources.

The bill would:

• require community grants to be expended for benefits across all regions and residents of the state;
• allow community grants to be awarded for trail maintenance and improvement and aquatic invasive species management; and
• prohibit the awarding of community grants to a state agency, the University of Minnesota, or for scientific research.

Several changes would relax regulations prohibiting intentionally added perfluoroalkyl and polyfluoroalkyl substances in consumer products and other substances.

The bill would:

• exempt from the prohibition on selling items that contain intentionally added PFAS to items that contain intentionally added PFAS only in internal components;
• exclude certain children’s recreational vehicles, including all-terrain vehicles and snowmobiles, children’s electric-assisted bicycles, and replacement parts for these items from the prohibition on the sale of items containing intentionally added PFAS; and
• delay until Jan. 1, 2028, a ban on PFAS-containing firefighting foam used in fixed firefighting systems at airport hangars.

Other notable policy provisions include:

• establishing a sustainable foraging task force to recommend to the Legislature science-based foraging guidelines for state lands that balance public access with conservation needs;
• making the open season for bass fishing continuous; and
• authorizing DNR officers to tag abandoned watercraft and making owners criminally and civilly liable for abandoning watercraft.