A bipartisan effort to reform Minnesota’s permitting process

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

Last week, we convened a bipartisan group of legislative leaders and coalition members from labor, agriculture and business to introduce a bill that would streamline and improve Minnesota’s permitting process.  

As you’ve heard me talk about before, the Minnesota Chamber Foundation released a data-driven report last year about the state’s permitting process and found that it contributes to the loss of economic development and business growth in the state.  

Since then, the Chamber and our partners have worked with the Minnesota Pollution Control Agency, Governor Walz and legislators to change this process and move our economy forward.  

Here's what our partners had to say about the critical nature of this legislation.

First, Senator Grant Hauschild, from Hermantown:

"And this, for me, is my number one priority when it comes to working across the aisle and focusing on the issues that matter most to my district. So, I'm grateful for that opportunity. For me, the biggest thing that we are focused on with this bill is making sure that Minnesota lives up to the idea that we are a state that works. It's great to have government programs and regulations that protect our environment and industries, but we have to make sure that these programs actually work. The most important thing we’re doing with this bill is creating a more efficient process for our agencies to work with applicants."

"There are so many great things that we're doing in this bill, and they're all common sense. They make sense for our industries. They make sense for our small communities. They make sense for labor, and they make sense for all of us to ensure that Minnesota stays competitive with our neighbors who have moved on similar initiatives over the last several years."

The House lead on this bill is Representative Josh Heintzman of the Brainerd Lakes Area. Here is what he had to say:

"I'm thankful for the opportunity to work on this in a bipartisan way to help job creators and small to medium-sized businesses that don't have the support they need. Getting through the permitting process in a timely manner is critical. Looking to our friends and neighbors in nearby states, we can see that we need to be more competitive – and we have to be."

I also weighed in on the importance of this bill.  

"Last year, the Minnesota Chamber Foundation, the Chamber's economic research arm, released a data-driven report with the help of Barr Consulting and the Policy Navigation Group. This is an incredible body of work that brings data to this question."

"This five-year analysis compares Minnesota's review times and processes to those of other states, and the findings are eye-opening. Minnesota's air permitting review times are 1.5 to six times slower than our peer states. The average time for the Minnesota Pollution Control Agency to review and issue an air permit for new construction or capital investment is 656 days—well over the 150-day goal set by the agency. Compare that to other states: Iowa averages 109 days, Wisconsin 121 days, and Illinois 110 days. And let me be clear—their permitting processes are no less stringent than ours."

"Our economy and workforce cannot afford to miss out on opportunities to expand in Minnesota, but that is exactly what's happening. From 2018 to 2023, Minnesota-based companies invested in 355 projects outside of the state. This resulted in an estimated $17.5 billion in capital expenditures and 31,000 lost jobs. This is a net deficit compared to other states—jobs that could have been created right here in Minnesota."

"No one is arguing against upholding environmental standards. Businesses understand the importance of protecting our state's resources. But businesses, especially small businesses from diverse industries around the state, rely on a permitting process that allows them to stay and grow in Minnesota. Costs, timeliness, and certainty are essential to getting good projects up and running. We appreciate the bipartisan progress made on the permitting bill last year and the continued progress this session. It is necessary to enhance efficiency and transparency through greater reporting and more clarity, such as separating industrial and municipal permits."

"This is not about one business sector – manufacturing, mining or agriculture. This is about advancing our shared interests to create a bright economic future for our communities and state. These common-sense efficiencies and changes will improve Minnesota’s economic performance for business, agriculture and labor alike."

I want to thank this group of leaders for making sure this bill moves through the Legislature. We look forward to making critical changes on behalf of Minnesota’s employers and employees this year. Be sure to tune in to next week’s episode of the Minnesota Business Podcast, so you don’t miss a beat on the 2025 Session!