1.1                          A bill for an act 
  1.2             relating to the environment; providing for the 
  1.3             reduction of toxic waste in environmental high impact 
  1.4             areas; requiring risk assessments; providing for 
  1.5             technical assistance; authorizing rulemaking; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 115D. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [115D.16] [IDENTIFICATION OF ENVIRONMENTAL HIGH 
  1.10  IMPACT AREAS.] 
  1.11     Subdivision 1.  [ASSESSMENT OF HEALTH RISKS.] (a) By July 
  1.12  1, 1996, the director shall assess the degree of risk to human 
  1.13  health posed by releases of toxic substances in each county.  
  1.14     (b) For each county, the director shall calculate and 
  1.15  compile the total weight of toxic pollutants released into the 
  1.16  ambient environment, broken down by releases into each 
  1.17  environmental media (air, water, land) and by each toxic 
  1.18  pollutant.  
  1.19     (c) In compiling the data described in paragraph (b), the 
  1.20  director shall disregard toxic pollutants which are in a 
  1.21  contained, controlled environment such as barrels, factories, 
  1.22  warehouses, or lined landfills.  
  1.23     (d) The director shall publish for public comment by 
  1.24  December 1, 1997, the methods to be used to calculate the total 
  1.25  weight of toxic chemicals released in each county.  
  1.26     (e) The director shall publish for public comment, not 
  2.1   later than December 1, 1997, the methods to be used to assess 
  2.2   the degree of risk posed by releases of toxic chemicals, as 
  2.3   required under this subdivision, as well as the basis for the 
  2.4   threshold level of risk determined by the director to be 
  2.5   substantial pursuant to subdivision 3.  
  2.6      Subd. 2.  [RANKINGS AND PUBLICATION OF LIST.] The director 
  2.7   shall publish a list of all counties that fall below the 
  2.8   threshold level of risk, ranked by the assessed degree of risk.  
  2.9   The director shall revise and republish this list every two 
  2.10  years using the most recent data available.  
  2.11     Subd. 3.  [DESIGNATION OF ENVIRONMENTAL HIGH IMPACT 
  2.12  AREAS.] (a) By July 1, 1997, and every two years thereafter, the 
  2.13  director shall designate any county as an environmental high 
  2.14  impact area if the degree of risk to human health posed by 
  2.15  releases of toxic pollutants in that county meets a threshold 
  2.16  level of substantial risk.  This threshold level shall be 
  2.17  established by the director.  
  2.18     (b) To ensure the facilities with the highest potential for 
  2.19  releases of toxic pollutants are operating in compliance with 
  2.20  all applicable environmental health and safety laws and 
  2.21  applicable permits, the director shall conduct inspections of 
  2.22  all facilities that handle toxic pollutants in environmental 
  2.23  high impact areas.  
  2.24     Subd. 4.  [REPORT ON HEALTH IMPACTS.] (a) By July 1, 1997, 
  2.25  the commissioner of health shall issue a report on environmental 
  2.26  high impact areas that: 
  2.27     (1) documents incidences of cancer, birth deformities, 
  2.28  infant mortality rates, and respiratory diseases; 
  2.29     (2) compares the incidence of health impacts under clause 
  2.30  (1) in environmental high impact areas with state and 
  2.31  demographic averages; 
  2.32     (3) assesses the health risks posed by releases of toxic 
  2.33  chemicals by individual chemical and cumulatively; 
  2.34     (4) determines the levels to which releases of toxic 
  2.35  pollutants, individually and cumulatively, must be reduced so 
  2.36  that a county shall no longer be designated as an environmental 
  3.1   high impact area; and 
  3.2      (5) determines the impact of releases not regulated by law 
  3.3   and releases in violation of current law.  
  3.4      This report shall be made available for public review.  
  3.5      (b) If the report under paragraph (a) identifies 
  3.6   significant adverse health impacts from exposure to toxic 
  3.7   pollutants, a review board consisting of citizen representatives 
  3.8   of the affected communities, working with industry 
  3.9   representatives, legislators, and the governor shall propose 
  3.10  solutions to remedy and prevent such impacts. 
  3.11     Sec. 2.  [115D.17] [ASSISTANCE TO COMMUNITY-BASED HEALTH 
  3.12  CARE PROVIDERS.] 
  3.13     The director shall provide grants to community-based health 
  3.14  facilities in environmental high impact areas to enable them to 
  3.15  establish special programs to monitor and respond to adverse 
  3.16  health effects on the residents of the community. 
  3.17     Sec. 3.  [115D.18] [PUBLIC HEARINGS.] 
  3.18     (a) The director shall hold public hearings to investigate 
  3.19  issues concerning possible inequities and discrimination in 
  3.20  state enforcement of environmental laws.  The director shall 
  3.21  establish citizen advisory committees to ensure direct citizen 
  3.22  participation in the hearings.  The director shall file a report 
  3.23  with the legislature which summarizes the hearings, evaluates 
  3.24  any concerns voiced by the citizens, and recommends remedies for 
  3.25  any existing inequities or discrimination in enforcement.  
  3.26     (b) Additional public hearings shall be held if the 
  3.27  director determines that the need is shown.  The director may 
  3.28  make this determination based upon a review of a citizen 
  3.29  petition.  The director shall file a report, as described in 
  3.30  paragraph (a) whenever an additional hearing occurs. 
  3.31     Sec. 4.  [115D.19] [COMMUNITY IMPACT STATEMENTS.] 
  3.32     Subdivision 1.  [IN GENERAL.] The pollution control agency 
  3.33  shall adopt regulations to require the preparation of a 
  3.34  community impact statement as part of the permitting process for 
  3.35  any new facility that handles toxic pollutants and for any 
  3.36  expansion of an existing facility.  
  4.1      Subd. 2.  [PUBLIC REVIEW.] Each statement shall be made 
  4.2   available for public review, following its release to the local 
  4.3   community's elected officials.  
  4.4      Subd. 3.  [USE OF STATEMENT.] The agency must:  
  4.5      (1) give great weight to the community impact statement 
  4.6   when making any final decision regarding the issuance of a 
  4.7   permit; 
  4.8      (2) deny an applicant its permit, if the statement 
  4.9   identifies any current unabated violations of other permits held 
  4.10  by the applicant.  In addition, even if an applicant has no 
  4.11  unabated violations, but is deemed a "bad actor" because of 
  4.12  repeat past violations, the agency must deny the applicant its 
  4.13  permit; and 
  4.14     (3) hold a public hearing at which time members of the 
  4.15  community where the site would be located can provide public 
  4.16  comments on the community impact statement and other issues 
  4.17  relating to the permitting of a facility in their community.  
  4.18  The statement and comments made at the public hearing shall be 
  4.19  part of the record on which the permitting decision is based.  
  4.20     Subd. 4.  [SELECTION OF INDEPENDENT CONTRACTOR TO PREPARE 
  4.21  STATEMENT.] The community impact statement shall be prepared by 
  4.22  an independent contractor, who must possess certain 
  4.23  qualifications to be defined by the commissioner.  The 
  4.24  independent contractor shall be selected by the community's 
  4.25  chief elected official, following consultation with community 
  4.26  members and the permit applicant.  
  4.27     Subd. 5.  [COSTS.] There shall be a fee for each permit 
  4.28  application for which a community impact statement is required.  
  4.29  The fee shall cover the costs of preparing the community impact 
  4.30  statement.  
  4.31     Subd. 6.  [REQUIREMENTS.] A community impact statement must 
  4.32  identify and describe each of the following:  
  4.33     (1) the types of chemical releases expected from the 
  4.34  facility; 
  4.35     (2) the projected effects of the facility on the health, 
  4.36  environment, and economy of the community where the site would 
  5.1   be located; 
  5.2      (3) the options or alternatives for mitigating any negative 
  5.3   impacts on the health, environment, and economy of the affected 
  5.4   community; 
  5.5      (4) the demographic characteristics of the community where 
  5.6   the facility would be located; 
  5.7      (5) the presence in the affected community of any other 
  5.8   existing toxic chemical facilities and hazardous waste sites; 
  5.9   and 
  5.10     (6) the applicant's record of compliance with state and 
  5.11  federal environmental laws, including the record of compliance 
  5.12  of any firm affiliated with the applicant. 
  5.13     Subd. 7.  [ISSUANCE OF PERMIT.] When a community impact 
  5.14  statement identifies a likely significant adverse effect on the 
  5.15  local economy and employment level of the community where the 
  5.16  facility will be located the state shall take actions to 
  5.17  mitigate the effects.  The state may attempt to mitigate these 
  5.18  effects by supporting community programs relating to employment 
  5.19  and economic development, including: 
  5.20     (1) job training and placement programs; 
  5.21     (2) community development corporations; 
  5.22     (3) micro loan programs for local businesses; 
  5.23     (4) day care centers for low-income working parents; and 
  5.24     (5) adult educational programs.  
  5.25     The commissioner, in consultation with the appropriated 
  5.26  state officials, shall specify which adverse impacts are to be 
  5.27  considered significant under this subdivision.  
  5.28     Subd. 8.  [DEADLINE.] A community impact statement must be 
  5.29  completed by the independent contractor within three months from 
  5.30  the date on which the application is filed. 
  5.31     Sec. 5.  [115D.20] [ADDITIONAL COMMUNITY EMPOWERMENT.] 
  5.32     Subdivision 1.  [TRUST FUND.] The state shall establish a 
  5.33  trust fund for community-based environmental cleanup, health 
  5.34  testing, and health remediation.  The trust fund is to be 
  5.35  established through mechanisms such as user fees, expansion of 
  5.36  community reinvestment acts, etc.  
  6.1      Subd. 2.  [SPECIAL LOANS PROGRAM.] (a) The state shall 
  6.2   create a special loans program to provide resources for 
  6.3   community-based environmental cleanup, health testing, and 
  6.4   health remediation.  The loans shall be financed from income 
  6.5   earned by the trust fund described in subdivision 1.  
  6.6      (b) Citizen groups may obtain loans up to $....... in order 
  6.7   to fund communitywide environmental cleanup, health testing, and 
  6.8   health remediation activities.  
  6.9      (c) To receive a loan under this program, an applicant must 
  6.10  submit a detailed proposal outlining how they will use the funds 
  6.11  and how the cleanup, testing, or remediation will be achieved.  
  6.12     (d) Loans will be forgiven upon satisfactory completion of 
  6.13  the proposed cleanup, testing, or remediation. 
  6.14     Subd. 3.  [SPECIAL PROGRAMS FOR ENVIRONMENTAL HIGH IMPACT 
  6.15  AREAS.] The director shall establish for communities located in 
  6.16  environmental high impact areas the following:  
  6.17     (1) a program enabling communities to hire independent 
  6.18  experts to conduct both on-site and off-site monitoring of local 
  6.19  facilities to ensure that the facilities are complying with 
  6.20  their permits, and state and federal laws; 
  6.21     (2) community environmental resource centers located within 
  6.22  existing community service facilities and institutions, staffed 
  6.23  by an environmental expert, that shall do the following: 
  6.24     (i) provide environmental awareness training to citizens; 
  6.25     (ii) provide education to citizens about state and federal 
  6.26  "right-to-know" provisions; 
  6.27     (iii) inform citizens of the opportunities to participate 
  6.28  and affect governmental decisions regarding the environment; and 
  6.29     (iv) serve as a clearinghouse for environmental 
  6.30  information; and 
  6.31     (3) a program which facilitates contract between citizens 
  6.32  of an affected community and environmental groups, health 
  6.33  experts, and legal advisors who are willing to volunteer their 
  6.34  services to promote environmental justice. 
  6.35     Sec. 6.  [115D.21] [GENERAL PROHIBITION.] 
  6.36     (a) There shall be a prohibition against permitting the 
  7.1   construction or operation of any new facility that handles toxic 
  7.2   pollutants within 12 miles of any existing facility.  
  7.3      (b) This prohibition may be waived if, based on public 
  7.4   comment from the community where the site would be located, the 
  7.5   local unit of government:  
  7.6      (1) determines that pressing local environment needs 
  7.7   require a new facility; or 
  7.8      (2) decides to accept the siting of a new facility in 
  7.9   exchange for incentives offered by the operators of the facility 
  7.10  to the community.  Such incentives may include, but are not 
  7.11  limited to:  
  7.12     (i) increased employment; 
  7.13     (ii) direct payments to the local government; 
  7.14     (iii) contributions by the facility to the community 
  7.15  infrastructure; 
  7.16     (iv) compensation to individual landowners for any assessed 
  7.17  decrease in property values; or 
  7.18     (v) subsidization of community services.  
  7.19     (c) Public comment shall be obtained through hearings, town 
  7.20  hall meetings, advisory referenda, and any other appropriate 
  7.21  mechanisms. 
  7.22     Sec. 7.  [115D.22] [MORATORIUM IN ENVIRONMENTAL HIGH IMPACT 
  7.23  AREAS.] 
  7.24     (a) If a county is designated an environmental high impact 
  7.25  area, there shall be a moratorium in that county on the siting 
  7.26  or permitting of any new facility that handles toxic pollutants 
  7.27  or any expansion of an existing facility.  A new facility or an 
  7.28  expansion may be sited or permitted in the county during the 
  7.29  moratorium only if: 
  7.30     (1) the appropriate local government determines that there 
  7.31  is a pressing environmental need for the new facility or 
  7.32  expansion; or 
  7.33     (2) the facility demonstrates that it will minimize any 
  7.34  releases that threaten public health and maintain a 
  7.35  comprehensive pollution prevention program.  
  7.36     (b) The moratorium shall continue in effect until the 
  8.1   director determines that the county is not longer designated an 
  8.2   environmental high impact area.  This determination shall be 
  8.3   based on a reassessment of the degree of risk to human health 
  8.4   posed by releases of toxic pollutants in each county. 
  8.5      Sec. 8.  [115D.23] [GRANTS FOR IMPACT STUDIES OF EXISTING 
  8.6   FACILITIES.] 
  8.7      (a) The director shall establish a grant program to be 
  8.8   funded by user fees levied upon operators of facilities that 
  8.9   handle toxic pollutants for the purpose of awarding community 
  8.10  impact study grants. 
  8.11     (b) These grants will enable individuals, citizens groups, 
  8.12  and local governments to obtain an independent study of the 
  8.13  impact of existing facilities that handle toxic pollutants in 
  8.14  the area which were sited prior to the requirement of community 
  8.15  impact statements.  The study will detail the effects on the 
  8.16  local economy, the environment, and public health. 
  8.17     (c) To receive a grant an applicant must present evidence 
  8.18  that the community experiences significant: 
  8.19     (1) economic depression; 
  8.20     (2) environmental hazards; or 
  8.21     (3) public health problems. 
  8.22     (d) The independent studies may be used: 
  8.23     (1) to facilitate the filing of citizen petitions for a 
  8.24  public hearing; 
  8.25     (2) to request investigation by the director of the need 
  8.26  for remedial action; or 
  8.27     (3) to qualify for state assistance for community programs 
  8.28  relating to employment and economic development described in 
  8.29  section 115D.19, subdivision 7. 
  8.30     Sec. 9.  [115D.24] [SPECIAL INSURANCE.] 
  8.31     (a) The state shall create a program to assist communities 
  8.32  and individuals in purchasing special insurance policies to 
  8.33  cover the risk of a future decrease in property values 
  8.34  attributable to the siting or operation of a toxic chemical 
  8.35  facility. 
  8.36     (b) The state shall provide matching funds for insurance 
  9.1   purchases to communities that can demonstrate exceptional need 
  9.2   or risk of a severe fiscal crisis in the event of reduced 
  9.3   property values. 
  9.4      Sec. 10.  [115D.25] [CLAWBACK AGREEMENTS.] 
  9.5      The state shall enable communities to enter into "clawback" 
  9.6   agreements with the operators of any new facility that handles 
  9.7   toxic pollutants.  If the local government decides to offer 
  9.8   incentives to the operators of a facility to locate in the 
  9.9   community in exchange for promises of economic development and 
  9.10  increased employment, they may institute a "clawback" 
  9.11  agreement.  The "clawback" agreement shall ensure that if a 
  9.12  facility does not satisfy its promises, the community will get a 
  9.13  portion of its incentives reimbursed. 
  9.14     Sec. 11.  [115D.26] [RULES.] 
  9.15     The director shall adopt rules necessary to enforce the 
  9.16  provisions of sections 115D.16 to 115D.25.