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Environmental Quality Board approves expedited rulemaking to align environmental review rules with new energy permitting statute

September 18, 2025 | Environmental Quality Board, Agencies, Boards, & Commissions, Executive, Minnesota


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Environmental Quality Board approves expedited rulemaking to align environmental review rules with new energy permitting statute
The Minnesota Environmental Quality Board voted Sept. 17 to initiate expedited rulemaking to amend Minnesota Rule 4410 so it conforms with changes enacted by the legislature for large energy infrastructure projects (Minn. Stat. 216i). The board also authorized Executive Director Kathryn Neuschler to proceed with the rulemaking steps, including publishing a notice in the State Register.
Colleen Petzel, director of the EQB's Environmental Review Program, presented the rulemaking package and background. Petzel said the 2024 Energy Infrastructure Permitting Act consolidated environmental-review requirements for large energy projects (including transmission lines, large electric-generation plants, energy storage systems, associated facilities and large solar systems) into Minnesota Statute 216i and moved certain Department of Commerce review staff and responsibilities to the Public Utilities Commission. Petzel said EQB's rules must be updated to avoid duplication and conflicting references, and staff proposed a "clearinghouse" approach: add a new part in Rule 4410 that directs users to Minn. Stat. 216i for large energy infrastructure projects while retaining smaller project thresholds in Rule 4410.
Petzel explained specific changes proposed in the notice: remove or amend mandatory categories in Rule 4410 that are now governed by Minn. Stat. 216i; add cross-references and signposts in the EAW and EIS mandatory-category sections to direct users to the new statute; add definitions for project types added or clarified in the statute (for example, "energy storage system" and carbon dioxide pipeline definitions); remove a transmission-line EAW threshold that is not used in Minnesota; and update references where statutory authority moved or statutes were repealed. Petzel also summarized the process and timeline: the board's approval would allow staff to publish the notice of intent to adopt in the State Register on Sept. 29, open a public comment period from Sept. 29 through Nov. 10 (about 40 days), review comments, return to the board with any changes (targeting a final board vote in January 2026), and then proceed through the Administrative Law Judge review and final notice.
Board member Martin said he would abstain from the vote and explained on the record that he works for Xcel Energy (he said he does not represent Xcel in his role on the EQB) and cited perceived conflict of interest concerns; he said he supported the underlying legislation when it passed and understood the proposed changes are conforming. The board recorded an 11-0-1 tally (yes-no-abstain). Petzel and Executive Director Neuschler answered a public-comment question from Renee Kieser, water resources manager for the White Earth Band of the Minnesota Chippewa Tribe, who asked whether EQB planned to bring the rule changes to the Minnesota Tribal Environmental Committee (MNTEC) and what the tribal consultation timeline would be during the Sept.-Nov. comment window. Neuschler said EQB had previously discussed conforming changes at MnTAC (December and February meetings and a June meeting) and sent annual consultation letters to tribes outlining the workplan and offering consultation; she characterized the proposed rule changes as conforming to legislative decisions rather than new substantive policy and said EQB did not expect that the rule changes themselves would create substantive tribal implications but would continue outreach.
The resolution to initiate the expedited rulemaking and to authorize the executive director to proceed passed with 11 yes votes and one abstention. Petzel said EQB would publish the reviser's draft language placed in the State Register and accept formal comments through the public-comment period; staff will return to the board after the comment review to seek final approval and to complete the rulemaking process.

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