1.1 A bill for an act 1.2 relating to solid waste; exempting paper products from the extended producer 1.3 responsibility program managing solid waste; amending Minnesota Statutes 2024, 1.4 sections 115A.1441, subdivisions 10, 16, 26; 115A.1442; 115A.1450, subdivision 1.5 4; 115A.1451, subdivision 7; 115A.1454, subdivision 1. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 2024, section 115A.1441, subdivision 10, is amended to 1.8read: 1.9 Subd. 10.Covered material."Covered material" means packaging and paper products 1.10introduced in this state. Covered material does not include exempt materials. 1.11 EFFECTIVE DATE.This section is effective the day following final enactment. 1.12 Sec. 2. Minnesota Statutes 2024, section 115A.1441, subdivision 16, is amended to read: 1.13 Subd. 16.Exempt materials."Exempt materials" means materials, or any portion of 1.14materials, that are: 1.15 (1) are packaging for infant formula, as defined in United States Code, title 21, section 1.16321(z); 1.17 (2) are packaging for medical food, as defined in United States Code, title 21, section 1.18360ee(b)(3); 1.19 (3) are packaging for a fortified oral nutritional supplement used by persons who require 1.20supplemental or sole source nutrition to meet nutritional needs due to special dietary needs 1.21directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, 1.22as those terms are defined by the International Classification of Diseases, Tenth Revision; 1Sec. 2. 25-03604 as introduced02/10/25 REVISOR CKM/CH SENATE STATE OF MINNESOTA S.F. No. 2619NINETY-FOURTH SESSION (SENATE AUTHORS: HOFFMAN, Johnson and Lang) OFFICIAL STATUSD-PGDATE Introduction and first reading03/17/2025 Referred to Environment, Climate, and Legacy 2.1 (4) are packaging for a product regulated as a drug or medical device by the United 2.2States Food and Drug Administration, including associated components and consumable 2.3medical equipment; 2.4 (5) are packaging for a medical equipment or product used in medical settings that is 2.5regulated by the United States Food and Drug Administration, including associated 2.6components and consumable medical equipment; 2.7 (6) are drugs, biological products, parasiticides, medical devices, or in vitro diagnostics 2.8that are used to treat, or that are administered to, animals and are regulated by the United 2.9States Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act, 2.10United States Code, title 21, section 301 et seq., by the United States Department of 2.11Agriculture under the federal Virus-Serum-Toxin Act, United States Code, title 21, section 2.12151 et seq.; 2.13 (7) are packaging for products regulated by the United States Environmental Protection 2.14Agency under the Federal Insecticide, Fungicide, and Rodenticide Act, United States Code, 2.15title 7, section 136 et seq.; 2.16 (8) are packaging used to contain liquefied petroleum gas and are designed to be refilled; 2.17 (9) are paper products used for a newspaper's print publications, including supplements 2.18or enclosures, that include content derived from primary sources related to news and current 2.19events; 2.20 (10) are paper products used for a magazine's print publication that has a circulation of 2.21less than 95,000 and that primarily includes content derived from primary sources related 2.22to news and current events; 2.23 (11) are (9) packaging used to contain hazardous or flammable products regulated by 2.24the 2012 federal Occupational Safety and Health Administration Hazard Communication 2.25Standard, Code of Federal Regulations, title 29, section 1910.1200, that prevent the packaging 2.26from being waste reduced or made reusable, recyclable, or compostable, as determined by 2.27the commissioner; 2.28 (12) are (10) packaging that is being collected and properly managed through a paint 2.29stewardship plan approved under section 115A.1415; 2.30 (13) are (11) exempt materials, as determined by the commissioner under section 2.31115A.1453, subdivision 6; or 2.32 (14) are (12) covered materials that: 2Sec. 2. 25-03604 as introduced02/10/25 REVISOR CKM/CH 3.1 (i) a producer distributes to another producer; 3.2 (ii) are subsequently used to contain a product, and the product is distributed to a 3.3commercial, institutional, industrial, or business entity for the production of another product; 3.4and 3.5 (iii) are not subsequently introduced to a any other person other than the commercial or 3.6business entity that first received the product used for the production of another product. 3.7 EFFECTIVE DATE.This section is effective the day following final enactment. 3.8 Sec. 3. Minnesota Statutes 2024, section 115A.1441, subdivision 26, is amended to read: 3.9 Subd. 26.Producer.(a) "Producer" means the following person responsible for 3.10compliance with requirements under sections 115A.144 to 115A.1463 for a covered material 3.11introduced: 3.12 (1) for items sold in or with packaging at a physical retail location in this state: 3.13 (i) if the item is sold in or with packaging under the brand of the item manufacturer or 3.14is sold in packaging that lacks identification of a brand, the producer is the person that 3.15manufactures the item; 3.16 (ii) if there is no person to which item (i) applies, the producer is the person that is 3.17licensed to manufacture and sell or offer for sale to consumers in this state an item with 3.18packaging under the brand or trademark of another manufacturer or person; 3.19 (iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner 3.20of the item; 3.21 (iv) if there is no person described in item (i), (ii), or (iii) within the United States, the 3.22producer is the person who is the importer of record for the item into the United States for 3.23use in a commercial enterprise that sells, offers for sale, or distributes the item in this state; 3.24or 3.25 (v) if there is no person described in items (i) to (iv), the producer is the person that first 3.26distributes the item in or into this state; 3.27 (2) for items sold or distributed in packaging in or into this state via e-commerce, remote 3.28sale, or distribution: 3.29 (i) for packaging used to directly protect or contain the item, the producer of the packaging 3.30is the same as the producer identified under clause (1); and 3Sec. 3. 25-03604 as introduced02/10/25 REVISOR CKM/CH 4.1 (ii) for packaging used to ship the item to a consumer, the producer of the packaging is 4.2the person that packages the item to be shipped to the consumer; 4.3 (3) for packaging that is a covered material and is not included in clauses (1) and (2), 4.4the producer of the packaging is the person that first distributes the item in or into this state; 4.5and 4.6 (4) for paper products that are magazines, catalogs, telephone directories, or similar 4.7publications, the producer is the publisher; 4.8 (5) for paper products not described in clause (4): 4.9 (i) if the paper product is sold under the manufacturer's own brand, the producer is the 4.10person that manufactures the paper product; 4.11 (ii) if there is no person to which item (i) applies, the producer is the person that is the 4.12owner or licensee of a brand or trademark under which the paper product is used in a 4.13commercial enterprise, sold, offered for sale, or distributed in or into this state, whether or 4.14not the trademark is registered in this state; 4.15 (iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner 4.16of the paper product; 4.17 (iv) if there is no person described in item (i), (ii), or (iii) within the United States, the 4.18producer is the person that imports the paper product into the United States for use in a 4.19commercial enterprise that sells, offers for sale, or distributes the paper product in this state; 4.20or 4.21 (v) if there is no person described in items (i) to (iv), the producer is the person that first 4.22distributes the paper product in or into this state; and 4.23 (6) (4) a person is the producer of a covered material sold, offered for sale, or distributed 4.24in or into this state, as defined in clauses (1) to (5) (3), except: 4.25 (i) where another person has mutually signed an agreement with a producer as defined 4.26in clauses (1) to (5) (3) that contractually assigns responsibility to the person as the producer, 4.27and the person has joined a registered producer responsibility organization as the responsible 4.28producer for that covered material under sections 115A.144 to 115A.1463. In the event that 4.29another person is assigned responsibility as the producer under this subdivision, the producer 4.30under clauses (1) to (5) (3) must provide written certification of that contractual agreement 4.31to the producer responsibility organization; and 4Sec. 3. 25-03604 as introduced02/10/25 REVISOR CKM/CH 5.1 (ii) if the producer described in clauses (1) to (5) (3) is a business operated wholly or in 5.2part as a franchise, the producer is the franchisor if that franchisor has franchisees that have 5.3a commercial presence within the state. 5.4 (b) "Producer" does not include: 5.5 (1) a state, a federal or state agency, a political subdivision, or other governmental unit; 5.6 (2) a registered 501(c)(3) charitable organization or 501(c)(4) social welfare organization; 5.7 (3) a de minimis producer; 5.8 (4) a mill that uses any virgin wood fiber in the products it produces; or 5.9 (5) a paper mill that produces container board derived from 100 percent postconsumer 5.10recycled content and nonpostconsumer recycled content. 5.11 EFFECTIVE DATE.This section is effective the day following final enactment. 5.12 Sec. 4. Minnesota Statutes 2024, section 115A.1442, is amended to read: 5.13 115A.1442 ESTABLISHMENT OF PROGRAM. 5.14 Producers must implement and finance a statewide program for packaging and paper 5.15products in accordance with sections 115A.144 to 115A.1463 that encourages redesign to 5.16reduce the environmental impacts and human health impacts and that reduces generation 5.17of covered materials waste through waste reduction, reuse, recycling, and composting and 5.18by providing for the collection, transportation, and processing of used covered materials 5.19for reuse, recycling, and composting. 5.20 EFFECTIVE DATE.This section is effective the day following final enactment. 5.21 Sec. 5. Minnesota Statutes 2024, section 115A.1450, subdivision 4, is amended to read: 5.22 Subd. 4.Content of needs assessment.A needs assessment must include at least the 5.23following: 5.24 (1) an evaluation of: 5.25 (i) existing waste reduction, reuse, recycling, and composting, as applicable, for each 5.26covered materials type, including collection rates, recycling rates, composting rates, reuse 5.27rates, and return rates, as applicable, for each covered materials type; 5.28 (ii) overall recycling rate, composting rate, reuse rate, and return rate for all covered 5.29materials; and 5Sec. 5. 25-03604 as introduced02/10/25 REVISOR CKM/CH 6.1 (iii) the extent to which postconsumer recycled content, by the best estimate, is or could 6.2be incorporated into each covered materials type, as applicable, including a review of market 6.3and technical barriers to incorporating postconsumer materials into covered materials; 6.4 (2) an evaluation of covered materials in the disposal, recycling, and composting streams 6.5to determine the covered materials types and amounts within each stream, using new studies 6.6conducted by the commissioner or publicly available and applicable studies; 6.7 (3) proposals for a range of outcomes for each covered materials type to be accomplished 6.8within a five-year time frame in multiple units of measurement, including but not limited 6.9to unit-based, weight-based, and volume-based, for each of the following: 6.10 (i) waste reduction; 6.11 (ii) reuse rate and return rates; 6.12 (iii) recycling rates; 6.13 (iv) composting rates; and 6.14 (v) postconsumer recycled content, if applicable; 6.15 (4) proposals for a range of outcomes for the categories established in section 115A.1451, 6.16subdivision 7, that consider: 6.17 (i) information contained in or used to prepare a needs assessment according to this 6.18subdivision; 6.19 (ii) goals and requirements of the Waste Management Act; 6.20 (iii) statewide goals for greenhouse gas emission reductions under section 216H.02; 6.21 (iv) the need for continuous progress toward overall reduction in the generation of 6.22covered materials waste and the complete reuse, recycling, or composting of covered 6.23materials to reduce environmental impacts and human health impacts; 6.24 (v) a preference for statewide requirements that accomplish and further the goals and 6.25requirements in items (ii) to (iv) as soon as practicable and to the maximum extent achievable; 6.26and 6.27 (vi) information from packaging and paper product producer responsibility programs 6.28operating in other jurisdictions; 6.29 (5) an evaluation of the factors for each covered material collected for recycling or 6.30composting as established in section 115A.1453, subdivision 4; 6Sec. 5. 25-03604 as introduced02/10/25 REVISOR CKM/CH 7.1 (6) recommended collection methods by covered materials type to maximize collection 7.2efficiency, maximize feedstock quality, and optimize service and convenience for collection 7.3of covered materials to be considered or that are included on lists established in section 7.4115A.1453; 7.5 (7) proposed plans and metrics for how to measure progress in achieving performance 7.6targets and statewide requirements; 7.7 (8) an evaluation of options for third-party certification of activities to meet obligations 7.8of sections 115A.144 to 115A.1463; 7.9 (9) an inventory of the current system, including: 7.10 (i) infrastructure, capacity, performance, funding level, and method and sources of 7.11financing for the existing covered services for covered materials operating in the state; 7.12 (ii) an estimate of total annual costs of covered services based on registered service 7.13provider costs; and 7.14 (iii) availability and cost of covered services for covered materials to covered entities 7.15and any other location where covered materials are introduced, including identification of 7.16disparities in the availability of these services in environmental justice areas compared with 7.17other areas and proposals for reducing or eliminating those disparities; 7.18 (10) an evaluation of investments needed to increase waste reduction, reuse, recycling, 7.19and composting rates of covered materials according to the range of proposed performance 7.20targets and statewide requirements, including investments in existing and new infrastructure 7.21that would also: 7.22 (i) maintain or improve operations of existing infrastructure and accounts for waste 7.23reduction, reuse, recycling, and composting of covered materials statewide; 7.24 (ii) expand the availability and accessibility of recycling collection services for recyclable 7.25covered materials to all covered entities to optimize service and convenience; and 7.26 (iii) establish and expand the availability and accessibility of reuse services for reusable 7.27covered materials; 7.28 (11) a recommended methodology for applying criteria and formulas to establish 7.29reimbursement rates as described in section 115A.1455; 7.30 (12) an assessment of the viability and robustness of markets for recyclable covered 7.31materials and the degree to which these markets can be considered responsible markets; 7Sec. 5. 25-03604 as introduced02/10/25 REVISOR CKM/CH 8.1 (13) an assessment of the level and causes of contamination of source-separated recyclable 8.2materials, source-separated compostable materials and collected reusables, and the impacts 8.3of contamination on service providers, including the cost to manage this contamination; 8.4 (14) an assessment of toxic substances intentionally added to covered materials, whether 8.5this limits one or more covered materials types from being used as a marketable feedstock, 8.6and best practices producers can implement to reduce intentionally added toxic substances 8.7in covered materials that could be verified through suppliers certificates of compliance, 8.8testing, or other analytical and scientifically demonstrated methodology; 8.9 (15) an assessment of current best practices to increase public awareness, educate, and 8.10complete outreach activities accounting for culturally responsive materials and methods 8.11and an evaluation of the efficacy of these efforts, including assessments and evaluations of 8.12current best practices and efforts on: 8.13 (i) using product or packaging labels as a means of informing consumers about 8.14environmentally sound use and management of covered materials; 8.15 (ii) increasing public awareness of how to use and manage covered materials in an 8.16environmentally sound manner and how to access waste reduction, reuse, recycling, and 8.17composting services; and 8.18 (iii) encouraging behavior change to increase participation in waste reduction, reuse, 8.19recycling, and composting programs; 8.20 (16) identification of the covered materials with the most significant environmental 8.21impact, including assessing each covered material's generation of hazardous waste, generation 8.22of greenhouse gases, environmental justice impacts, public health impacts, and other impacts; 8.23 (17) recommendations for meeting the criteria for an alternative collection program as 8.24established in section 115A.1451, subdivision 8; and 8.25 (18) other items identified by the commissioner that would aid the creation of the 8.26stewardship plan, its administration, and the enforcement of sections 115A.144 to 115A.1463. 8.27 EFFECTIVE DATE.This section is effective the day following final enactment. 8.28 Sec. 6. Minnesota Statutes 2024, section 115A.1451, subdivision 7, is amended to read: 8.29 Subd. 7.Statewide requirements.(a) The commissioner must establish statewide 8.30requirements and the date by which they must be met for the following categories: 8.31 (1) recycling rate; 8Sec. 6. 25-03604 as introduced02/10/25 REVISOR CKM/CH 9.1 (2) composting rate; 9.2 (3) reuse rate; 9.3 (4) return rate; 9.4 (5) the percentage of covered materials introduced that must be waste reduced; and 9.5 (6) the percentage of postconsumer recycled content that covered materials must contain, 9.6including an overall percentage for all covered materials, as applicable, excluding 9.7compostable materials that cannot include postconsumer recycled content due to unique 9.8chemical or physical properties or health and safety requirements that prohibit introduction 9.9of postconsumer recycled content. 9.10 (b) The commissioner may use the following information and criteria when establishing 9.11statewide requirements under paragraph (a): 9.12 (1) needs assessments under section 115A.1450; 9.13 (2) goals and requirements of the Waste Management Act; 9.14 (3) statewide goals for greenhouse gas emission reductions under section 216H.02; 9.15 (4) the need for continuous progress toward overall reduction in the generation of covered 9.16materials waste and the complete reuse, recycling, or composting of covered materials to 9.17reduce environmental impacts and human health impacts; 9.18 (5) a preference for statewide requirements that accomplish and further the goals and 9.19requirements in clauses (2) to (4) as soon as practicable and to the maximum extent 9.20achievable; and 9.21 (6) information from packaging and paper product producer responsibility programs 9.22operating in other jurisdictions. 9.23 (c) The commissioner must consult with the producer responsibility organization on 9.24establishing statewide requirements, submit proposed statewide requirements for review 9.25by the board, and consider the board's recommendations before finalizing the statewide 9.26requirements. 9.27 (d) Every five years, the commissioner must review the statewide requirements established 9.28under paragraph (a). If the commissioner decides an update is not warranted at that time, 9.29the commissioner must submit the reasoning to the advisory board and consider the board's 9.30recommendations before making a final decision. If the commissioner decides an update is 9.31warranted, the process in paragraphs (b) and (c) must be utilized. 9Sec. 6. 25-03604 as introduced02/10/25 REVISOR CKM/CH 10.1 (e) The producer responsibility organization must ensure the statewide requirements are 10.2met. 10.3 EFFECTIVE DATE.This section is effective the day following final enactment. 10.4 Sec. 7. Minnesota Statutes 2024, section 115A.1454, subdivision 1, is amended to read: 10.5 Subdivision 1.Annual fee.A producer responsibility organization must annually collect 10.6a fee from each member producer that must: 10.7 (1) vary based on the total amount of covered materials each producer introduces in the 10.8prior year calculated on a per-unit basis, such as per ton, per item, or another unit of 10.9measurement; 10.10 (2) reflect the program costs for each covered materials type, net of commodity value 10.11for that covered materials type, as well as allocated fixed costs that do not vary based on 10.12covered materials type; 10.13 (3) incentivize using materials and design attributes that reduce the environmental impacts 10.14and human health impacts of covered materials by: 10.15 (i) eliminating intentionally added toxic substances in covered materials; 10.16 (ii) reducing the amount of: 10.17 (A) packaging per individual covered material that is necessary to efficiently deliver a 10.18product without damage or spoilage and without reducing its ability to be recycled; and 10.19 (B) paper used to manufacture individual paper products; 10.20 (iii) increasing the amount of covered materials managed in a reuse system; 10.21 (iv) increasing the proportion of postconsumer material in covered materials; 10.22 (v) enhancing the recyclability or compostability of a covered material; and 10.23 (vi) increasing the amount of inputs derived from renewable and sustainable sources; 10.24 (4) discourage using materials and design attributes in covered materials whose 10.25environmental impacts and human health impacts can be reduced by the methods listed 10.26under clause (3); 10.27 (5) prioritize reuse by charging covered materials that are managed through a reuse 10.28system only once, upon initial entry into the marketplace; and 10.29 (6) generate revenue sufficient to pay in full: 10.30 (i) the fee required under section 115A.1443; 10Sec. 7. 25-03604 as introduced02/10/25 REVISOR CKM/CH 11.1 (ii) financial obligations to complete activities described in an approved stewardship 11.2plan and to reimburse service providers under section 115A.1455; 11.3 (iii) the operating costs of the producer responsibility organization; and 11.4 (iv) for establishment and maintenance of a financial reserve that is sufficient to operate 11.5the program in a fiscally prudent and responsible manner. 11.6 EFFECTIVE DATE.This section is effective the day following final enactment. 11Sec. 7. 25-03604 as introduced02/10/25 REVISOR CKM/CH