On May 18, 2026, the Minnesota Pollution Control Agency (MPCA) published its long-anticipated proposed rules implementing Minn. Stat. § 116.065, marking a major step in Minnesota's effort to incorporate cumulative environmental concerns into air permitting decisions for facilities located in or near designated environmental justice areas.
If adopted, the rules would add substantial new procedural, technical and public-engagement requirements to new, modified and renewed state and major air permits governing facilities in the state's more populous areas.
Background
Minn. Stat. § 116.065, created in 2023, requires the MPCA commissioner to promulgate rules "to implement and govern cumulative impacts analyses and issuance or denial of [major or state air] permits for facilities that impact environmental justice areas." Under the statute, facilities in or within one mile of an "environmental justice area" in the seven counties surrounding Minneapolis and St. Paul or in the cities of Rochester and Duluth must include within permit applications a data-supported determination of whether the permitted action is likely to impact the environment or the health of residents of the relevant environmental justice area. The statute also requires the MPCA commissioner to determine whether a permit action requires a "cumulative impacts analysis," whether it may substantially impact the environment or health of the residents of an environmental justice area, and whether a "community benefit agreement" may be necessary before the permit action can be approved. In adopting these requirements, Minnesota became only the second state in the nation (following New Jersey) to regulate air emissions based on "environmental justice" concerns.
Highlights of the Proposed Rules
After nearly three years of soliciting public comments and providing conceptual previews, the MPCA, on May 18, 2026, published its draft set of rules governing the cumulative impacts consideration processes for applicants and the MPCA commissioner in the Minnesota State Register (PDF). In addition to modifying existing rules governing air permit applications and approvals, the proposed rules create a new section within Minn. R. Ch. 7007 (7007.6000 - .6120) focused exclusively on the new cumulative impacts requirements. The proposed rules, among other things, set forth the following standards and requirements:
- Initial Assessment (Minn. R. 7007.6050): Owners or operators seeking a permit action will be required to submit an initial assessment addressing whether the action could affect the environment or the health of residents in an environmental justice area, along with supporting data and detailed information about the source, surrounding area, operations, permits, impacts, mitigation measures and compliance history. The proposed rule also establishes when a cumulative impacts analysis is required, e.g., for new construction, for certain facility expansions that exceed specified emissions thresholds, or for a permit reissuance following a recent enforcement action. Finally, it requires the commissioner to post public notice of the initial assessment and provide basic information so interested persons can review the materials and, if they wish, petition for a cumulative impacts analysis.
- Petition Process (Minn. R. 7007.6060): Community members may petition the commissioner to require a cumulative impacts analysis for a permit action affecting an environmental justice area, provided they, in a timely manner, submit a petition with at least 100 local signatures, required identifying information, and supporting evidence. The commissioner then reviews the petition for completeness, allows a short period to fix deficiencies, and then grants or denies the petition based on whether the permit action may substantially affect the environment or residents' health.
- Determination of Need (Minn. R. 7007.6070): The commissioner must order a cumulative impacts analysis for a permit action when specified benchmarks are met or when the action may substantially affect the environment or health in an environmental justice area. The commissioner also may require an analysis at the owner's request or in certain discretionary circumstances, provided she satisfies specific information and process requirements.
- Public Participation (Minn. R. 7007.6080): Owners or operators required to prepare a cumulative impacts analysis or community benefit agreement must submit a commissioner-approved public participation plan and hold at least two public meetings in the affected environmental justice area. The proposed rule also establishes detailed requirements for meeting timing, location, notices, fact sheets, language access, recordings, comment periods, and the content that must be presented at each stage of the process. Finally, it requires the commissioner to post key documents online and requires owners or operators to keep detailed records of notices, comments, responses, recordings and any additional outreach.
- Cumulative Impacts Analysis (Minn. R. 7007.6090): An owner or operator ordered to do a cumulative impacts analysis must submit it to the commissioner at least 45 days before the first required public meeting. The analysis must include the initial assessment, detailed site and community impact information, mitigation proposals, responses to public comments, and the determination of whether the permit action would substantially harm the environment or residents' health. The owner or operator also must conduct a commissioner-approved air quality modeling analysis to evaluate whether the source may cause or contribute to exceedances of ambient air quality standards, as well as a commissioner-approved air emissions risk analysis, to assess potential human health risks using specified acceptable risk thresholds to determine whether the permit action would cause or contribute to exceeding those levels.
- Substantial Adverse Impact (Minn. R. 7007.6100): The commissioner must (1) determine whether a requested permit action would cause a substantial adverse environmental or health impact in an impacted environmental justice area based on specified modeling, risk, cumulative impact, public comment, mitigation and socioeconomic factors, and (2) issue a written, publicly posted explanation of that decision. If the commissioner determines the impact would be substantial, the owner or operator may revise the permit action and cumulative impacts analysis with additional limits or mitigation measures to eliminate that finding. No community benefit agreement is required, however, if the revised action no longer has a substantial adverse impact.
- Community Benefit Agreements (7007.6110): A community benefit agreement (CBA) is necessary when a permit action triggers a cumulative impacts analysis and results in a determination of substantial adverse impact. A CBA requires significant community outreach, including multilingual mailed notices, public participation, and a discussion of proposed benefits. It also must address, at a minimum, impacts, benefits, timelines, ownership, reporting and implementation standards. The proposed rule establishes deadlines and procedures for submitting draft and proposed agreements, requires public posting by the commissioner, and directs the commissioner to decide whether to enter into the agreement based on compliance, public input, and whether the agreement prioritizes benefits that directly affect residents of the affected environmental justice area. It also requires the commissioner to document and publicly post her reasons for her preliminary determination, including what information was considered and any changes made to the proposed agreement.
- Permit Decisions (7007.6120): Before issuing or denying a permit action, the commissioner must determine (1) if a cumulative impacts analysis is needed, (2) whether a required analysis suggests the permit action would cause a substantial adverse impact, and (3) if so, whether a community benefit agreement is appropriate. No construction, operation, or modification of a stationary source nor any final action by MPCA is permissible until these determinations are made, any pending petition is resolved, and any required community benefit agreement is signed. Lastly, if a cumulative impacts analysis is necessary, the commissioner may not issue the requested permit action until at least 30 days after the last required public meeting.
Next Steps
Members of the public may now submit comments on the draft rules until 4:30 p.m. on July 17, 2026. The MPCA also provided notice of an administrative hearing on the proposed rules alongside their publication in the State Register. Administrative Law Judge Kimberly Middendorf will conduct the virtual public hearing on September 1, 2026, beginning at 3p.m. The public will have additional opportunities for comment — and the MPCA opportunities for rebuttal — following the administrative hearing.
Interested persons also have two additional opportunities to learn more about the proposed rules. The MPCA will hold an "informational webinar" on June 2, 2026, from 6–7:30 p.m. In addition, Fredrikson and Trinity Consultants will host a webinar on June 10, 2026, summarizing and analyzing the proposed rules. Fredrikson's Environmental team will continue to monitor and report on the development and adoption of these rules and stands ready to assist regulated parties as they navigate these and other new and existing environmental requirements across the country.
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