April15,2015

TheHonorableDennyMcNamara,Chair
TheHonorableRickHansen,DFLLead
Environment&NaturalResourcesPolicyand
Environment&NaturalResourcesPolicyand
FinanceCommittee
FinanceCommittee
MinnesotaHouseofRepresentatives
MinnesotaHouseofRepresentatives

365StateOfficeBuilding
247StateOfficeBuilding
100Rev.Dr.MartinLutherKingJr.Blvd
100Rev.Dr.MartinLutherKingJr.Blvd.
St.Paul,Minnesota55155
St.Paul,Minnesota55155

DearRepresentativesMcNamaraandHansen:

IwriteinoppositionofHF846DE3,theOmnibusEnvironmentandNaturalResourcesPolicyandFinance
Bill,scheduledforhearingthisweekinyourcommittee.Myoppositionisbasedonnumerous
individualanddetrimentalprovisionsinthebill.Butmyoppositionisbasedmoreonthefundamental
approachthatunderpinsthisbill.

TransparencyandintegrityarethefundamentalprinciplesuponwhichGovernorDaytonhasrequiredall
agenciestobasetheirbudgets.Iagreewiththeseprinciples.Inourbudget,weproposereasonable,
justifiablesolutionstodocumentedproblemsaswellaseffortstomeetthedemandsandneedsof
citizensandbusinesses,whilecontinuingtomoveforwardtowardsourstatutorygoalsforcleanwater,
cleanair,andpollutionfreelands.Overall,theGovernorsbudgetproposalforouragencywasa
modest1percentincreasetomeetknownneedsanddidnotrelyonGeneralFundrevenuesforthat
increase.Istronglyopposetheuseofshiftsandgimmicksinbudgeting.Ourbudgetadherestothe
principlethatrevenuesources(feesandtaxreceipts)shouldcloselyalignwiththeservicesperformed
andtheirrelatedoutcomes.Onmanyofthesefronts,however,thisbillappearstobeastepbackward.
ItsprovisionsresultindamagingcutsfortheMinnesotaPollutionControlAgency(MPCA),cutsthat
wouldpreventtheagencyfrommaintainingemergencyresponseandcleanupcapabilityandfrom
meetingtheAgencysstatutorygoalsforprotectingpublichealthaswellasimprovingandrestoringthe
environment.Moreover,atatimeofsignificantGeneralFundsurplus,itisillconceivedtoshiftfunds
fromMPCAdedicatedaccountstoincreasetheGeneralFundforotherpurposesoutsidetheMPCA.

FiscalIssues:
Fromafiscalstandpoint,Ihavetwocoreconcerns.

First,duetotheinterplayofcapsandtransfersinthisbillandresultingreductionsintheRemediation
Fund,theMPCAsworktocleanupclosedlandfillsandSuperfundsiteswouldbereduced,andour
emergencyresponsecapabilitywouldbehamperedthelatteratatimewhenincreasedshipmentsof
oilarecrossingourstatebyrail,pipelineandtruck.Duringlisteningsessionsaroundthestatelastyear,
firstrespondersvoicedtheirstrongconcernsthattheMPCAsenvironmentalemergencyresponse
capabilitybemaintainedtosupporttheireffortsindealingwithspillsofhazardoussubstances.

Mysecondcoreconcernisthatitisdifficulttoseewhatproblemsthisbudgetaimstoaddress.Isthere
aproblemthatrequirestheshiftofsolidwastetaxrevenuestofundnaturalresourceswork?Doesthe
performanceoftheAgencysuggestthatthebillsproponentshavefoundperformancedeficiencies?If
so,whatarethey?Specificdeficienciesintheagencysperformancehavenotbeenlaidout,eitherin

RepresentativesDennyMcNamaraandRickHansen
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April15,2015

billsortestimony.UnderthisAdministration,theMPCAhasbenchmarkeditsperformanceagainst
establishedgoalsandpriorities;wemonitorenvironmentalconditionsincludingwaterquality,air
quality,solidwastedisposalinlandfills,recycling,theefficiencyofourpermittingandenforcement
actions,andmuchmore.TheMPCAisaleaderamongstateagenciesincontinuousimprovementefforts
thathaveresultedinsignificantcostsavingsandincreasedtimeliness.

Inspecific:

The$34.6millioncapontransfersfromtheEnvironmentalFundtotheRemediationFundwould
limitwhatcouldbespentonemergencyresponse,Superfundcleanups,closedlandfillconstruction
andmaintenance,andhazardouswastecleanups.Intheeventofamajorthreattopublichealthor
theenvironment,ifaresponsiblepartycouldnotbefoundorwasunabletopayforcleanup,we
wouldhavetowaitforoneormoreyearstosecuresufficientfundsfromtheLegislaturetoaddress
thesituation.Thecapalsolimitsthetimelinessofcleaningupsitesthatcouldberedevelopedfor
newbusinessesandcreatejobs.

Thebillcreatesastructuralimbalancethatwillcontinueintothefuture.Withthecap,shiftsand
transfersofpenaltieslaidoutinthisbill,theRemediationFundwouldbeinadeficitpositionatthe
endofFY2017,andtheEnvironmentalFundwouldnolongerbeabletosustaintheRemediation
Fundasexpected.Fundamentally,thisunsustainableschemeofcapsandtransfersisunsoundfiscal
policy.Forexample,theAgencyscapacitycouldbelimitedincleanupsofwatersupply
contamination,suchasthoseinBayportandSpringPark.

MMBisdirectedtotransfer$13.276millionfromtheClosedLandfillInvestmentFund(CLIF)toa
DNRaccountinthespecialrevenuefund.Further,nofurtherpaymentswouldbemadeintothe
CLIFunderthisbill.CLIFwasintendedtobuildasustainablefundbyJuly1,2020thatcouldmeet
theongoingmaintenance/managementcostsof113MPCAadministeredclosedlandfillsforwhich
thestatesobligationforenvironmentalremediationcarrieswellintothemid21stcentury.Asa
resultofthisbill,theCLIFfundwillrunoutofmoneyin13years,or2033,wellshortofknown
programcosts.

Anothertransferof$8.1millionfromtheMetropolitanLandfillContingencyActionTrust(MLCAT)
accounttothespecialrevenuefund,redirectsresourcestoanunrelatedpurpose.MLCATisa
dedicatedaccountintowhichmetroMetroresidentspayaportionoftheirgarbagebillssothat
fundingwillbeavailableforlongtermneedsatsevenlandfills.Citizenspaidintothisaccount,andI
donotagreethattheirpaymentsshouldbeusedtofundnonlandfillactivities.Thistransferwould
leavetheMPCAemptyhandedwhenmoneyisneededtotakecareoftheselandfillsinthefuture.

Therequestedoperatingincreasesfortheagencyarenotincludedinthisbill,whichimpactsboth
theEnvironmentalandRemediationFunds.Atatimeofasignificantbudgetsurplus,failingtofund
baseoperationsincreasesseemsunnecessary.Further,thebilllanguageonlines9.179.29directs
alloperatingreductionstobemadeinsolidwasteactivities.Thiswillputadisproportionate
reductiontoactivitiesincludingcertificationandtraining,solidwastemanagement,solidwaste
permitting,andwasteandtoxicpollutionprevention.

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April15,2015

ThecancellationofthestatutoryappropriationfromtheGeneralFundtotheNaturalResources
DamageAccount(NRDA)oftheRemediationFund,$906,000overthebiennium,willremovefunds
forprojectsthatoffsetthelongtermdamagesofcontaminantsbyimprovinghabitatandthe
environment.Thisactionalsocutsfundingforstaffthatpursue/obtaindamagesreimbursementsto
thestate.

ThezeroingoutoffundingforbiomonitoringstartinginFY2018isofconcern.Thisprogramwas
createdin2007duringthePawlentyAdministration.Itspurposeistohelpbetterunderstandthe
impactofenvironmentalexposuresofcontaminantssuchasmercury,lead,cadmiumandPFCson
publichealth,includingvulnerablepopulationssuchmothersandtheirbabies.Thesehighlytoxic
substancesareknowntoharminfant,childandmaternalhealth.Infact,onein10babieslivingon
theNorthShoreofLakeSuperiorhavemercurylevelsabovelimits.Thestatutesestablishclear
goalsandresponsibilitiesfortheMNDepartmentofHealthwithsupportfromtheMPCAtobuild
anddevelopthisprogram.Onesignificantresultoftheprogram:inWashingtonCounty,ithasbeen
clearlydemonstratedthatcleaningupdrinkingwatersourcesleadstoreducingtheconcentrations
ofperfluorinatedcompoundsinhumanblood.Thisprogramhasallowedforgreaterawarenessof
theconsequencesofexposuretocontaminantsindrinkingwater,airandsoil.Itshouldnotbe
ended.Itshouldbefundedpermanentlyinthebasebudget.

ThezeroingoutoffundingfortheCleanWaterPartnershipprogram,at$800,000/biennium,willend
alongstandinggrantprogramtooutstatelocalunitsofgovernment.Unlikeotherwaterrelated
grantprograms,theCleanWaterPartnershipfundscanbeusedtobuildlocalcapacitytocarryout
localwaterqualityprotectionandimprovementprojects.Mostavailablegrantsrelatedtothis
activitydonotallowfundstobespenttosupportlocalcapacitythroughthehiringofstaffor
purchaseofequipment.

GovernorsInitiatives:
WhileIappreciatetheinclusionoftheMPCAspolicyandtechnical,orhousekeeping,billinthe
Omnibuslegislation,themajorityoffundingrequestsexpressedintheGovernorsInitiativeswerenot
includedinthebill.OnlypartsoftwooftheGovernorsInitiativeswereincluded:

EnvironmentalDataServicesandProgramImprovementswouldbefundedat50%lessthanthe
Governorsrequestandforonlyonebienniuminthisbill.Thisfundingprovidestheservicesthat
businessesandcitizensexpectinthisdigitalage.MPCAsgoalistomoveawayfrompaperandsnail
mail,andtransitionrapidlytoonlineservicesandapplications.Thisbillwouldsignificantlyimpede
ourabilitytodosoanddelayneededenhancementstothebusinesssystemdevelopedand
implementedasareplacementtotheMPCAsagingbusinesssystem.

TheGovernorsvaporintrusioninitiativeisweakenedsignificantly.Vaporintrusionisanemerging
problem,whereinsitesthatwerecleanedupinthepastarenowfoundtobethesourceoftoxic
vaporsseepingintohomesandotherbuildingsandthreateningpublichealth.Thepetroleumsideof
thevaporinitiativeisfunded,buttheSuperfundsideisnot.TheGovernorsbudgetrequestforthis
wastocontinuethefundingfromthepreviousappropriation.Thisisneededtosupporttheongoing
workoftheAgencyatseveralexistingsitesofknownvaporintrusion.Asaresult,theMPCAwill
havelessabilitytohelpcitizenswhounknowinglyliveaboveanolddrycleanerorfactorysitefrom
whichtoxicvaporsareleakingintotheirbasements.

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April15,2015

TwooftheGovernorsInitiativeswerenotincludedinthisbill:

ThefirstwouldhaveenhancedtheToxicFreeKidsActbyensuringthatparentsareprovided
informationontoxicsubstancesinchildrenstoysandfood;and

Thesecondwouldhavebegunatransparentprocesstorestructureagencyprogramfeesto
makethemmoreequitableandsustainable.

PolicyIssues:
Severalpolicyprovisionsinthisbillwouldreduceactivitiesthatprotectpublichealthandthe
environment.GovernorDaytonisonrecordopposingtheinclusionofunwarrantedpolicyprovisionsin
budgetbills.ThepolicyprovisionsthattheMPCAopposesinthisbill:

ThebillincludeslanguagefromHF616andHF617,billsthatwouldaddcostandtimetothewater
regulationprocesses.TheMPCAtestifiedagainstboththesebillsincommitteehearings.HF616
requireslegislativeapprovalofallwaterqualitystandardsthatcontaininnovation,specificlevelsof
industryimpactoranyagencyimpact,andrequiresacostanalysisforallcurrentandfuturewater
qualitystandardsorrules.HF617requiresapeerreviewofeverywaterrelatedstandard,rule,
guideline,andofdocumentationaccompanyingwaterrelatedpermits.HF846DE3includesa
backdoorcutbecausethefundingconnectedwithrequirementsfromHF616wouldendinFY19.
Thebillappropriates$5.3millionoverthebienniumforpurposesofHF617,abillthatduplicates
currentpeerreview,wouldslowdownpermittingprocesses,andwouldimposecostsonpermittees
whowouldalsoberequiredtoprovidepeerreviewsofmaterialssubmittedtotheagency.One
exampleofthiswouldbeafeedlotNPDESpermit.Underthisbill,whenfarmersseektorenewtheir
NPDESpermits,theycouldberequiredtopayforpeerreviewofthescientificdocumentationthey
submitinsupportoftheirrequesttoMPCA.

LanguagefromHF1000,onwildricewaterqualitystandards,wasopposedbyouragencyin
committeehearings.ThislanguageasintroducedwouldimpedetheMPCAsabilitytorespondto
permitrequestsforexpansionsofexistingfacilitiesorconstructionofnewfacilitiesupstreamof
knownwildricewaters.Lastmonth,theMPCAannouncedourdraftproposedapproachforthewild
ricewaterqualitystandard,alongwithadraftproposedlistofwildricewatersanddraftproposed
criteriafordefiningthosewaters.Withthisnewprocessanddefinedtimeframeinplace,theMPCA
questionsthenecessityofthislanguage.

SignificantchangestotheMPCACitizensBoard,fromHF1394,includeprovisionsthatbegthe
question:Whatistheproblemthatthebillseekstoaddress?TheBoardaddsvaluetotheworkof
theAgency.EntitiessuchastheLeagueofWomenVoterstestifiedtothisbeforetheCommittee.
Weopposethisprovision.

Astudyofcrumbrubber(HF1601)thatisrequiredandfundedwith$50,000inthebillis
problematic.MPCAdoesnothavetheexpertiseneededtoevaluatethehealtheffectsofcrumb
rubber,suchassmallfillparticleinhalation,anddermalabsorption,sowewouldneedto
contractouttomeettherequirementsofthisrider.Further,theappropriatedamountisnot
sufficienttoobtainthetypeoforiginalresearchrequiredbythislanguage.Thefiscalnoteonthis
bill,preparedbytheDepartmentofHealth,estimatedthecostat$205,000inFY2016and$118,000
inFY2017,or$323,000forthebiennium.

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TheLandfillDiversionTaskForceStudyrequiredinthebilldoesnotlineupwithfindingsofthe
OfficeoftheLegislativeAuditor(OLA)onthisissue.Minnesotaalreadyhasasolidwasteframework
thatworksandtheOLAendorsedthisapproach.TheOLAnotedthesystemneedsmore
accountability,notless,andmorereporting,notmorecredits.Ifwewantmorerecyclingin
Minnesota,thisisntthepath.Rather,weneedtocreateandstrengthenmarketstogrowthe
demandforrecycledmaterial.

The$500,000foranoutsideconsultanttoassesstheMPCAisunnecessaryandredundant.Italso
begsthequestion:Whatistheproblem?Whereisitdocumented?BeginningwiththeVentura
AdministrationandcontinuingunderthePawlentyandDaytonadministrations,MPCAleadership
hasworkedtoeliminatesilosandremovebarriersbetweendivisionsoftheagency.Additionally,
theMPCAhasaproventrackrecordofdocumentingperformancegoalsandmeasuresthat
demonstrateitsprogramseffectiveness.Thisstudyandotherlanguageearlierinthebillsuggests
theagencyreturntothatpreviousorganizationalandmanagementstructure.Thisappropriationis
notaneffectiveuseofresourcesbecausetheOLAsProgramEvaluationDivisionalreadydoesthis
work.TheOLAhasauditedpartsoftheMPCAintherecentpast:solidwasteoperations,and
environmentalreviewandpermitting.MPCAhasastrongContinuousImprovementprogram
underwaythatisprovidingmeasureablegains.

Thebillsprovisionrequiringa90dayadvanced,nonpublic,andexclusivenoticetoproject
proposersforalldiscretionaryEISandEAWshasthepotentialtodiminishpublictrustintheprocess,
becauseitmandatesaperiodofsilencethatworksagainstthegoaloftransparentpublicdiscourse,
andprolongstheenvironmentalreviewprocessunnecessarily.

TheBaseBudgetReportrequiredinthisbillisunnecessarybecausetheinformationitseeksis
alreadyavailableandprovidedtotheLegislatureduringthebiennialbudgetyears.

Thelanguageonsubsurfacetreatmentsystemsatcampgroundsisnotthecompromiselanguage
thatwasforgedbystakeholdersThisprovisionneedstobecorrected.

Thenewrecyclingprogramspends$1.3millionattheexpenseofstatutorilyrequiredsolidwaste
managementactivities.Thisprogramwasnotintroducedasabillnorheardordiscussedin
committee.

Insummary,duetothefoundationalprinciplesofthisbillandtheproblemsitsprovisionscreate,I
opposethisbill.

Sincerely,

JohnLincStine
Commissioner

cc: MollyPederson,OfficeofGovernorMarkDaytonandLt.GovernorTinaSmith

CommissionerDr.EdwardEhlinger,MNDepartmentofHealth

CommissionerMonaDohman,MNDepartmentofPublicSafety