Environment law spends $1.19 billion, makes changes to PCA permitting processes

A new law funds state agencies and departments charged with preserving the quality of the state’s air, water, land and wildlife.

It also makes reforms to the permitting processes used by the Pollution Control Agency, modifies regulations prohibiting intentionally added perfluoroalkyl and polyfluoroalkyl substances (PFAS) in consumer products and expands the enforcement authority of the Department of Natural Resources (DNR) regarding abandoned watercraft.

Sponsored by Rep. Josh Heintzeman (R-Nisswa) and Sen. Foung Hawj (DFL-St. Paul), the omnibus environment and natural resources law is effective July 1, 2025, unless otherwise noted.

The law appropriates $1.19 billion from the General Fund and other special funds in the 2026-27 biennium for the DNR, Pollution Control Agency, Board of Water and Soil Resources, Conservation Corps, Minnesota Zoo, Metropolitan Council and the Science Museum of Minnesota.

It also spends $103.3 million in fiscal year 2026 from the state lottery-funded Environment and Natural Resources Trust Fund for more than 100 grants to protect the state’s air, water, land, fish, wildlife, and other natural resources.

There are also cancellations totaling $14.735 million of previous appropriations made in fiscal years 2023-25 to the DNR, Pollution Control Agency, and Board of Water and Soil Resources.

2025 Special Session: SSHF8/SSSF3*/SSCH1

Pollution Control Agency finance

Of the $305.3 million going to the Pollution Control Agency, $246.4 million is from the Environmental Fund, $44.2 million from the Remediation Fund and $14.5 million from the General Fund.

New Environmental Fund spending includes $760,000 for a public awareness campaign warning about the mercury levels in skin-lightening creams and to fund enforcement efforts to reduce or eliminate these products.

The law extends a provision appropriating money from the Closed Landfill Investment Fund to the Pollution Control Agency from June 30, 2025, to June 30, 2029, and increases the amount each fiscal year from $4.5 million to $6.5 million.

The law cuts $3 million from a 2025 agency appropriation for a local government climate resiliency and water infrastructure grant program. This is effective retroactively from July 1, 2023. (Art. 1, Secs. 2, 12-13; Art. 4, Sec. 17)

Pollution Control Agency policy

The law reforms many of the agency’s permitting processes with the goal of making them more efficient and speedier for businesses needing environmental permits to operate in the state.

These reforms include:

• requiring the agency’s annual permitting efficiency report to focus on the more complicated Tier 2 permits, and include additional information about permits that have not met the statutory goal;

• allowing the agency to not provide expedited permitting when it lacks the staff or contractor capacity to do so;

• providing permit applicants five business days to remedy identified deficiencies in permit applications; and

• limiting who can file discretionary environmental assessment worksheets to people residing in the county in which a proposed project will be undertaken or in one or more adjoining counties.

The new law relaxes regulations prohibiting intentionally added perfluoroalkyl and polyfluoroalkyl substances (PFAS) in consumer products and other substances by:

• exempting the internal components of products from the prohibition on selling products that contain intentionally added PFAS;

• excluding certain children’s recreational vehicles, including all-terrain vehicles and snowmobiles, electric-assisted bicycles, and replacement parts for these items, from the prohibition on selling juvenile products containing intentionally added PFAS; and

• providing a temporary exemption from the ban on PFAS-containing firefighting foam when used in fixed firefighting systems at airport hangars.

The agency must ensure its outreach efforts are suitable for culturally diverse communities and that its interactions with the public include audiovisual communication components and do not rely exclusively on written forms of communication. (Art. 4, Secs. 18-21, Art. 6, Secs. 1-7)

Department of Natural Resources finance

The DNR is to receive $796.9 million in the 2026-27 biennium, including money from three separate funds: $268.5 million from the General Fund; $266.1 million from the Natural Resources Fund; and $260.7 million from the Game and Wildlife Fund.

The latter two are dedicated revenue sources generated by natural resource-related fees and sales, and hunting and fishing licenses and fees, respectively.

The law cuts $5.5 million of a 2024 appropriation for enhancing prairies and grasslands and restoring wetlands on state-owned wildlife management areas. This cut is effective retroactively from July 1, 2023. And the law cuts $2.8 million from a 2023 to replace drought-killed tree seedlings and repurposes the money for reforestation needs associated with wildfires. (Art. 1, Secs. 11, 17)

DNR policy

The new law includes many policy changes regarding fees the DNR charges, the scope of its law enforcement duties, and regulations on hunting and angling.

Effective March 1, 2027, a resident veteran with a 50-99% service-connected disability could purchase an angling license for $5 and a license to take deer or small game for $5.

Peace or conservation officers will be able to ticket watercraft “unlawfully located on public accesses, public lands, and waters of this state or unlawfully located on property adjacent to waters of this state.” Unlawfully located is determined “if the watercraft appears to be (1) inoperative and neglected, wrecked, stranded or substantially dismantled; (2) in immediate danger of sinking; or (3) unmoored and unattended.”

An owner who knowingly fails to remedy the condition within 14 days of being notified is guilty of a misdemeanor. The DNR must investigate tagged watercraft 14 days after sending the notice to the registered owner. If the condition that led to tagging has not been remedied, the watercraft is considered abandoned and must be seized and disposed of by the DNR.

A person convicted of failing to remedy a condition that led to the tagging of a watercraft is subject to the following penalties until the person has reimbursed the DNR for all of its costs: voiding of their annual game and fish licenses, prohibiting acting under any lifetime game and fish license, voiding of all licenses and registrations needed to operate a watercraft, off-highway vehicle and snowmobile.

A “shotgun zone” that restricted deer hunters to using only shotguns, muzzleloaders, and handguns in the southern portion of the state is repealed. After Jan. 1, 2026, hunters anywhere in the state can use all legal firearms for deer hunting during the regular firearms season unless a county in the former shotgun zone adopts an ordinance restricting their use.

A Minnesota Sustainable Foraging Task Force is created to provide legislative recommendations by Feb. 28, 2026, on science-based foraging guidelines for state lands. The DNR is prohibited from beginning or completing any rulemaking on foraging before July 1, 2026. A combined $327,000 is appropriated to assist and administer the task force.

Other policy modifications include:

• requiring the DNR to ensure its work is carried out in a manner that facilitates enhanced outreach to all Minnesotans;

• effective Jan. 1, 2026, increasing the annual watercraft surcharge assessed to fund invasive species control from the current $10.60 to between $14 and $62, depending on boat size, type and use;

• extending by one year the ability of a person to hunt and fish with a crossbow during the respective archery seasons;

• making the open season for taking largemouth and smallmouth bass year-round; and

• increasing water-use permit fees and water-use permit application fees, effective Jan. 1, 2026. (Art. 1, Secs. 3, 9; Art. 4, Secs. 1, 4-5, 7-16, 24, 27-28)

Board of Water and Soil Resources

To continue its mission of improving and protecting state water and soil resources by working in partnership with local organizations and private landowners, the board will receive $32.2 million in the 2026-27 biennium.

Big-ticket funding items include:

• $14.2 million for administration and operation purposes;

• $6.8 million for natural resources block grants to local governments to implement the Wetland Conservation Act and shoreland management program;

• $6.2 million for grants and payments to soil and water conservation districts; and

• $2.9 million for conservation projects undertaken by soil and water conservation districts, including perennially vegetated riparian buffers, erosion control, and water retention and treatment.

The law cuts $2.8 million of a 2025 appropriation for conservation easements and restoration and enhancement for purposes of climate resiliency, adaptation, and carbon sequestration. This is effective retroactively from July 1, 2023. (Art. 1, Secs. 4, 18)

Other appropriations

For the 2026-27 biennium, the law appropriates $28.7 million for the Minnesota Zoo; $25.1 million for the Metropolitan Council; $2.72 million for the Science Museum of Minnesota; $2.1 million for Conservation Corps Minnesota and Iowa; and $888,000 for additional business permitting assistance through the Minnesota Business First Stop Program. (Art. 1, Secs. 5-8, and 10)

Environment and Natural Resources Trust Fund

The law appropriates $103.3 million in fiscal year 2026 from the Environment and Natural Resources Trust Fund for more than 100 projects aimed at environmental protection, conservation, preservation and enhancement. This includes land acquisition, data collection and research, environmental education, invasive species management, and habitat restoration.

Generated by the state lottery proceeds, the money was appropriated as recommended by the Legislative-Citizen Commission on Minnesota Resources.

Amounts distributed in fiscal year 2026 range from $120,000 to study trace metals in municipal yard waste and compost to $5.8 million to the Minnesota Aquatic Invasive Species Research Center at the University of Minnesota.

A November 2024 constitutional amendment approved by state voters renewed the lottery-based funding through 2035 and increased the amount that may be annually appropriated by 1.5% with the extra money used for community grants distributed by the DNR.

The law appropriates $28.18 million in fiscal year 2026 and specifies regulations for distributing the community grants, including that they be expended for benefits across all regions and residents of the state. It also expands the scope of projects eligible to receive grants to include aquatic invasive species management, trail maintenance and improvement on current state, regional, or local trails.

Effective June 1, 2025, community grants cannot be awarded to state agencies, the University of Minnesota, a for-profit business or for a scientific research project. (Art. 2, Sec. 2; Art. 3, Secs. 1-4)

State lands

Also in the law are DNR provisions to change the statutory boundary of a state park and legislative authorization for select land sales. This includes additions to Carley State Park in Wabasha County and the selling of surplus state land or tax-forfeited land acquired by the state in Aitkin, Cass, Itasca, Sibley and St. Louis counties. (Art. 5, Secs. 1-7)

SF1552* / HF1063 / CH1