Permitting reform update and Chamber priorities as session resumes this week

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

It’s been another busy week with the Legislature returning to session this week, but I will get to an update on that in a moment. First, we want to highlight a new report from the Minnesota Chamber Foundation on permitting reform.

This scorecard builds on the work of the 2024 report from the Foundation, which highlighted the need to streamline Minnesota’s environmental review and permitting system to support economic growth. That work brought together business leaders, policymakers, and stakeholders to identify delays, backlogs and a lack of transparency, and to push for real solutions at the Legislature.

During the last legislative session in 2025, lawmakers considered and passed bipartisan permitting reforms that clarified timelines and strengthened efficiency and transparency requirements, giving regulators and applicants clearer expectations and tools to work with. This year’s scorecard from the Chamber Foundation shows real progress but also clear signs that more work is needed to fix Minnesota’s slow and unpredictable permitting system.

The good news from the scorecard is that timelines for priority tier two air permits improved, dropping to a median of 268 days, a meaningful step in the right direction. More permits are being completed faster, with 24 of 38 issued within one year, and the share meeting the 150-day goal increased from three percent to 13 percent. While there is still room for improvement, these are positive trends.

We are also seeing modest improvements in backlogs and new efforts such as the Interagency Permitting Liaison and enhancements to the Business First Stop Program showing progress. I am very pleased that in February, Governor Walz signed an executive order directing agencies to build on these reforms by enhancing permitting efficiency, transparency and accountability through innovations like a two-stage permitting process.

However, challenges remain significant. Only five of 38 permits met the 150-day goal set by the agency. There is still a major backlog with 382 air permits in the system, with a median wait time of more than three years, creating uncertainty for businesses looking to invest and grow in Minnesota. We have work to do, but we are pleased with the progress being made.

Thank you to the Chamber Foundation and all our stakeholders for working with the agencies and elected officials to improve this important system.

As noted, this week, the Legislature is now back in St. Paul as session resumes following the Easter and Passover break. We are in the final weeks to get things done. The Chamber continues to advocate for policies to support growth, including permitting reform, tax competitiveness and other key business priorities that help Minnesota compete.

With that being said, next Wednesday, April 15, is Chamber Day at the Capitol. This is your last chance to register and make your voice heard directly with lawmakers during this critical time. 

We will see you then – have a great weekend! We look forward to connecting next week on the Minnesota Business Podcast.