State Innovation Grant
                    Program
                    Minnesota:
                    Environmental Results Program Applied to
                    Feedlots
The EPA State Innovation Grant Program was established in 2002 to help strengthen EPA's innovation partnerships
with States and Tribes and is a direct result of the Agency's innovation strategy, Innovating for Better Environmental
Results: A Strategy to Guide the Next Generation of Innovation at EPA (http://www.epa.gov/innovation/strategy).
To support the Innovation Strategy, the 2002 grant program focused its efforts on projects that related to one of
four priority issues: reducing greenhouse gases, reducing smog, improving water quality, and reducing the cost
of drinking water or wastewater infrastructure.  In addition, EPA sought projects that test incentives that motivate
"beyond-compliance" environmental performance, or move whole sectors  toward improved environmental
performance. This series of fact sheets features the State projects selected for funding under the Grant Program.
            Contacts:
Kate Brigman
Regional Environmental Division, Minnesota
Pollution Control Agency, 1230 South
Victory Drive, Mankato, MN 56001,
kate.brigman@pca.state.mn.us
Jennifer Ostermeier
US EPA Region 5; Chicago, IL,
ostermeier.jennifer@epa.gov
Adam Levitan
US EPA National Center for Environmental
Innovation, Washington, DC
202-566-1466, levitan.adam@epa.gov
Background

The Environmental Results Program (ERP) is a regulatory
program used in sectors with numerous small facilities. These
sectors are often historically underregulated in many states (auto
body shops, junkyards, photo processors, dry cleaners, printers,
etc.). In Minnesota, the swine and egg producers associations
achieved environmental benefits through innovative quality or
management system driven initiatives. The poultry producers are
currently preparing similar initiatives. The Minnesota Pollution
Control Agency (MPCA) seeks to apply the ERP model to
feedlot operations across the state in order to achieve maximum
environmental improvement.
                                                           NCEI

                                                          NATIONAL CENTER  FOR
                                                          ENVIRONMENTAL  INNOVATION

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Project Description

To address pollution from agricultural runoff
(phosphorus, nitrogen, biological oxygen demand,
and disease-causing pathogens), MPCA implemented
its updated feedlot rules in October 2000.  The rules
included a requirement that owners register their
feedlots and manure storage areas. The MPCA has
also focused state and county staff on permitting
and inspecting the over 30,000 sites now registered.
Even with that focus,  however, at existing rates of
inspection (given tight state and county budgets), the
estimated time to reach all state feedlots is greater
than 10 years.
This project will therefore test and implement an
ERP approach for feedlots that fall below the federal
dehnition seeking quicker improvements in
environmental performance and compliance than
might be possible under conventional inspections.
The State Innovation Grant (SIG) funding -will be
used to develop and implement a pilot ERP within a
segment of the feedlot population: dairies.  The
project also aims to extend the basic water quality
protection and land application management aspects
of Minnesota's feedlot rule to deal with odors, dusts,
pests, ancillary and maintenance operations, related
feed crop production,  and many other aspects of
operations, pushing toward a multi-media, "whole-
farm" management system.
Self-certification, assistance in partnership with the
Minnesota Milk Producers Association,  and other
ERP tools will help dairies improve environmental
performance and compliance in a more timely way,
and without the typical level of MPCA and county
effort.  Partnership with the producer association,
counties, the Board of Water and  Soil Resources,
Soil and Water Conservation Districts and Clean
Water Partnerships will aid development and
distribution of the program.  The project's results
will also inform MPCA's decision whether to extend
the pilot to other feedlot sectors, or whether to
consider making ERP  mandatory.
Should Minnesota be successful in applying the ERP
approach to feedlots, this project could serve as a
model to other states also working to improve the
compliance and performance status of feedlots
outside federal regulations.

Benefits of the Project

Likely outcomes from project implementation -
•      Faster, broader adoption and results — MPCA
       expects that participating feedlots will self-audit
       for compliance and adopt environmental
       improvement techniques for more areas of the
       farmstead and sooner than under a conventional
       inspection program.
•      Build on "lessons learned" — MPCA is adopting
       a process used and evolved successfully in other
       states. MPCA will be build on the work of
       producer associations and public/private pilots
       in Minnesota and other farm states, leveraging
       quality assurance programs, Farm Bill audit
       incentives, and EMS/auditing-based
       approaches promoted by producer associations.
Quantitiable environmental improvements include:
              self-corrections  to ensure
              compliance
              Best Management Practices (BMPs)
              for feed and supplement BMPs
              soil-tested nutrients levels
              nutrient management plans (both on-
              farm and at application sites)
              reduction in energy-use
             water conservation
              increased compost volume
              buffer strips along rivers and streams
              to keep pollutants out of the water
              drain tile inlets capped

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These measures will be developed further in the first
phases of the project:
•      improved administrative efficiency due to
       increased work load.
•      cost savings and improved efficiency for
       producers due to reductions in:
               energy and water use
               soil loss
               nutrient supplement for animals and
               feed crops

Project Plan
The pilot project has a three year life. The SIG project
period is 1/1/05-12/31/06.
United States
Environmental Protection
Agency
Office of Policy,
Economics and Innovation
(180 77)
   January 2005
EPA-100-F-05-004

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