Watch Sen. Farnsworth’s floor speech
ST. PAUL – Today the Minnesota Senate passed a bill that claims to improve permitting process for energy but lacks significant improvement for mining or manufacturing. Despite promises from Democrats to address key issues in permitting, the bill as passed exasperates current delays, stifles innovation, and discourages investment from mining and manufacturing industries.
“The groups that are blocking mining projects support permitting reform for their own ease, but they won’t let us mine for the minerals to create the very green technology they will rely on,” Senator Robert Farnsworth (R- Hibbing) said. “A few months ago, we learned a foundry in Hibbing, my hometown, is closing because of the cost of energy. The same people that want me to vote for this so-called reform bill are also causing energy costs so high it’s driving businesses out of our district and our state. This bill throws the mining industry some crumbs and trims around the edges, but it was a lost opportunity to put Minnesota on a better path.”
Minnesota has also lost major companies like Huber and Epitome Energy, as well we some operations for Talon Metals, to states with more favorable businesses and permitting rules. According to the Minnesota Chamber of Commerce research on permitting, Minnesota is ranked 43rd in the United States in mining GDP growth this decade, and well behind Michigan, a direct competitor for iron ore mining.
Senate Republicans proposed an amendment with serious changes to permitting, including a requirement for state agencies to meet permitting deadlines or file for an extension, something they don’t need to do right now. The Chamber research notes that on average, tier 2 air permits take 586 days, tier 2 water permits take 476 days, and only 9% of these permits have been issued in the deadline window of 150 days in 2022. The amendment was defeated along party lines.
“This bill is going to conference committee with the House, and I question whether the small changes that may help will stay in the bill. The opportunity to improve mining permitting with real changes to the bill was today, and every Democrat voted against it,” Farnsworth concluded.