Legislation Targets Earlier Notification of State About Potential High Water Use Projects

The proposal would require all city and county employees to report any contact related to a high water use project, even if no application or proposal has been made.

On April 3, the House Environment and Natural Resources Finance and Policy Committee heard HF 3007, sponsored by Rep. Peter Fischer (DFL-Maplewood). The bill aims to get information to the Department of Natural Resources (DNR) earlier in the development process about potential high water use projects. While the proposal is primarily directed at future data center projects, it would also apply to other industries, including crop-based fuel production, food processing, animal feedlots, and irrigation.

Rep. Fischer and the DNR expressed concern that by the time a project reaches the stage of addressing water appropriation and supply, significant investments have already been made, making it difficult to consider alternative options or environmental impacts.

What’s in the bill?

The bill would require all city and county employees to report to the DNR within 10 business days of any contact that may indicate a potential project involving high water use, even if no official proposal is made or location is identified.  

Bill language excerpt:

“A city or county employee who has been contacted by a person regarding a project that is likely to be subject to this subdivision must, even if no final decision has been made on the project’s location, notify the commissioner in writing within 10 business days of the contact, providing the name of and contact information for the person and potential project locations.”

League response

The League of Minnesota Cities, along with the Association of Minnesota Counties, submitted written testimony raising concerns about the local government reporting mandate. The League letter states that the bill’s language is overly vague, noting that informal conversations and speculative inquiries are common with city staff and happen well before any specific proposal or site is identified. 

The requirement also assumes all city staff — whether an economic development coordinator, a stormwater worker chatting with a vendor at a seminar, or a city clerk answering a call — would have the knowledge to recognize whether a conversation could potentially trigger the statute’s water use threshold.

These concerns were echoed by legislators during the hearing, where a League representative was called to provide additional information on the topic. The committee co-chairs acknowledged the issue and agreed it would need to be addressed if the proposal moves forward.

HF 3007 was laid over for possible inclusion in the omnibus environment and natural resources budget bill, which is expected to be drafted in the coming weeks. No Senate companion bill has been introduced at this time.

Next steps

The League will continue working with the House and Senate environment committees to prevent the mandated reporter requirement from being included as the omnibus bills are developed and finalized.

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