In re Approving the Findings of Fact and Record of Decision for Archer Datacenters Environmental Assessment Worksheet (EAW) and Negative Declaration Concerning the Need for an Environmental Impact Statement (EIS)

The Minnesota Court of Appeals reversed and remanded a decision by the City of Faribault to allow Archer Datacenters to construct a new facility without preparation of an environmental impact statement (EIS). The Minnesota Center for Environmental Advocacy (MCEA) argued that the City violated the Minnesota Environmental Policy Act (MEPA) in its review of Archer’s environmental assessment worksheet (EAW), which the City uses to evaluate whether a more exhaustive EIS is necessary. The court determined that MCEA had organizational standing to challenge the City’s decision as well as standing on behalf of its members. In examining the City’s decision not to require an EIS for the project, the court determined that the City did not provide sufficient evidence or reasonable explanation for their analyses of the project’s impact on air quality and noise pollution, its estimated greenhouse gas emissions, or its cumulative potential effects. Regarding greenhouse gas emissions, the court found that the City failed to explain why the project’s estimated emissions in the revised EAW decreased by 98% from the estimate in the draft EAW. The court also rejected the defendants’ argument that when evidence is lacking at the EAW stage, later permitting and regulatory processes could adequately safeguard environmental interests without requiring an EIS prior to approval. The court stated that, since information was unavailable or uncertain, the City could not approve the project and should have either required an EIS that provided the missing information or extended the period for decision by up to 30 days or for another agreed-upon window in order to obtain the information.