1.1 	A bill for an act
1.2 	relating to natural resources; modifying certain
1.3 	exemptions for an iron nugget production scale
1.4 	demonstration facility; requiring mercury reduction
1.5 	information; amending Minnesota Statutes 2004, section
1.6 	116.915, subdivision 3; Laws 2004, chapter 220,
1.7 	section 1.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 116.915,
1.10 	subdivision 3, is amended to read:
1.11 		Subd. 3.Progress reports.  The commissioner, in
1.12 	cooperation with the director of the Office of Environmental
1.13 	Assistance, shall submit progress reports to the legislature on
1.14 	October 15, 2001, and October 15, 2005.  The reports shall
1.15 	address the state's success in meeting the mercury release
1.16 	reduction goals of subdivision 1, and discuss whether different
1.17 	voluntary or mandatory reduction strategies are needed.  The
1.18 	reports shall also discuss whether the reduction goals are still
1.19 	appropriate given the most recent information regarding mercury
1.20 	risks. In the report due October 15, 2005, the commissioner
1.21 	shall describe the reductions made in mercury emissions since
1.22 	1990 by each individual sector, including, but not limited to,
1.23 	materials processing, energy production, and intentional use,
1.24 	and shall estimate the amount of the reduction achieved in each
1.25 	sector overall and specifically as a result of implementing a
1.26 	voluntary reduction plan.  The report must also contain revised
2.1 	estimates of mercury emissions by individual sectors in 1990,
2.2 	1995, 2000, and 2005.

2.3 	Sec. 2. Laws 2004, chapter 220, section 1, is amended to
2.4 	read:

2.5 	Section 1. Environmental review; iron nugget production
2.6 	scale demonstration facility exemption.
2.7 	(a) The first iron nugget production scale demonstration
2.8 	facility that meets all of the criteria in this section shall be
2.9 	exempt from environmental review under Minnesota Statutes,
2.10 	chapter 116D and Minnesota Rules, chapter 4410.  The qualifying
2.11 	project must:
2.12 	(1) be the first iron nugget production scale demonstration
2.13 	facility in Minnesota;
2.14 	(2) involve a single rotary hearth furnace of maximum
2.15 	outside pitch circle diameter, as measured from the midpoint of
2.16 	hearth to the midpoint of hearth,of 60 meters;
2.17 	(3) be located outside the area adjacent to the north shore
2.18 	of Lake Superior classified as the lake orientation zone in the
2.19 	Department of Natural Resources report entitled "North Shore
2.20 	Characterization Study"; and
2.21 	(4) have complete permit applications submitted to the
2.22 	appropriate state agencies in calendar year 2004 by June 30,
2.23 	2005,for all permits required to construct and operate the
2.24 	facility.
2.25 	(b) The Department of Natural Resources, the Environmental
2.26 	Quality Board, the Pollution Control Agency, and any other state
2.27 	agency with applicable permit-granting authority shall provide
2.28 	public notice for any necessary permits for the iron nugget
2.29 	production scale demonstration facility within four months of
2.30 	receiving complete applications.
2.31 	(c) If the first iron nugget production scale demonstration
2.32 	facility to qualify for this exemption is proposed at a
2.33 	stationary source that has permitted taconite pellet furnaces,
2.34 	permanent shutdown of those pellet furnaces, prior to start-up
2.35 	of the iron nugget production scale demonstration facility,
2.36 	shall be a requirement in the iron nugget production scale
3.1 	demonstration facility air quality permit.  The shutdown of
3.2 	these furnaces shall not be creditable in calculating the "net
3.3 	emissions increase," as defined in Code of Federal Regulations,
3.4 	title 40, section 52.21, for this project.
3.5 	(d) The Pollution Control Agency shall strive in the
3.6 	permitting process to assure the lowest mercury emissions
3.7 	reasonably possible.
3.8 	(e) Permit applications must comply with applicable law,
3.9 	except that an iron nugget production scale demonstration
3.10 	facility that meets the criteria in this section is exempt from
3.11 	environmental review under Minnesota Statutes, chapter 116D and
3.12 	Minnesota Rules, chapter 4410, and the company is not required
3.13 	to perform an environmental review before permits are issued for
3.14 	the iron nugget production scale demonstration facility.
3.15 	(f) The construction and operation of the iron nugget
3.16 	production scale demonstration facility will demonstrate whether
3.17 	the technology is technically and economically feasible at this
3.18 	larger scale.  Environmental data from the operation of the iron
3.19 	nugget production scale demonstration facility may be used in
3.20 	the environmental review and permitting of commercial scale
3.21 	facilities built elsewhere in Minnesota.
3.22 	(g) The exemption does not affect any existing permit
3.23 	requirement that may require environmental review for a
3.24 	commercial scale iron nugget facility at an existing taconite
3.25 	facility located within the area adjacent to the north shore of
3.26 	Lake Superior classified as the lake orientation zone in the
3.27 	Department of Natural Resources report entitled "North Shore
3.28 	Characterization Study."

3.29 	EFFECTIVE DATE. This section is effective the day
3.30 	following final enactment.