1. Office of the Legislative Auditor State of Minnesota Environmental Review and Permitting September 28, 2011 Environmental Review and Permitting September 28, 2011

2. OLA in State Government Executive Branch Legislative Branch Judicial Branch OLA State Agencies Governor House of Representatives Senate Courts Constitu- tional Officers

3. Office of the Legislative Auditor Nonpartisan Financial Audit Division Program Evaluation Division

4. Purpose of the Evaluation What are key elements in the environmental review and permitting processes? How timely are the processes for undergoing environmental review and obtaining permits? How well does the environmental review process meet its objectives?

5. Overview of Key Findings Not all environmental reviews fully meet all objectives Expertise and experience vary widely State agencies lack adequate data to measure timeliness Time taken varied greatly and for different reasons

6. Environmental Review and Permits Environmental Assessment Worksheet (EAW) EAW determines need for environmental impact statement (EIS); EAW 31 questions EIS analyses impacts, discusses alternatives, explores mitigation Public review periods Environmental review and permitting are separate processes; they sometimes intersect Purpose: To understand the impact that a project will have on the environment

7. Numbers of Private Sector Environmental Reviews and Permits EAW EIS Total FY 2010 22 1 23 FY 2009 38 2 40 FY 2008 70 2 72 Total 229 7 236 PCA DNR l 1,949 243 1,608 356 1,457 310 1,492 224 6,506 1,133 Environmental Reviews Environmental Permits FY 2007 99 2 101

8. State rules lay out objectives Not all environmental reviews fully meet all objectives Provide usable information on primary environmental effects of proposed projects Provide access to decision makers to encourage accountability in decision making Objectives for Environmental Reviews

9. The structure for access to decision makers to maintain public awareness of environmental concerns has flaws Notification process has limitations Lack of meaningful participation Process does not consistently allow public agencies to reduce delay and uncertainty or eliminate duplication Unmet Objectives for Environmental Reviews

10. Varying Levels of Expertise, Experience Some work only sporadically on environmental review Inexperience and lack of expertise can lead to problems

11. RecommendationsRecommendations To strengthen environmental review process: Develop a continuous improvement process To strengthen local governments’ ability to conduct environmental reviews: Cooperative arrangements On-demand training To change the EAW process: Allow certain low-risk projects to bypass EAW on a trial basis

12. PCA and DNR lack adequate data to measure timeliness PCA and DNR do not record dates for all phases of environmental review or permitting Problematic formats Prevents the agencies from monitoring compliance and identifying areas for improvement Measuring Timeliness

13. Timelines varied greatly and reflected individual circumstances Environmental Review Timeliness PCA DNR Local Case Studies EAWs 52 4 8 Maximum Median 181 334 120 Minimum 76 70 39 Days to Complete 785 406 195

14. Days for PCA to Complete EAWs Days

15. Days for Local Government Case Studies to Complete EAWs Days Days for comment period

16. PCA Days to Issue Select Private Sector Permits 1. Construction storm water 2. Air quality general new 3. Air quality general reissue 4. Air quality individual high priority 5. Air quality individual low priority PermitsMaximumMedianMinimum Days to Complete 5,304 94 12 53 174 0 14 337 48 47 7 126 789 193 306 366 484 1,481 912 1,680

17. PCA Overall Timeliness Issuing Permits for Private Sector Applications All Applications New or Modified Permit Applications 150 Days 180 Days Days to Complete Permit Applications 9,510 7,628 85% 93% 83% 92%

18. RecommendationsRecommendations PCA and DNR should improve their data’s value by routinely compiling timeliness information PCA and DNR should set explicit timeliness standards PCA and DNR should consistently inform proposers of: What is needed to complete EAWs Timeliness standards Agency expectations of proposers

19. Environmental Review and Permitting is available at: www.auditor.leg.state.mn.us