Paper products exemption from the extended producer responsibility program managing solid waste provision

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.​ 1.6 BE 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​ 1.8 read:​ 1.9 Subd. 10. Covered material. "Covered material" means packaging and paper products​ 1.10 introduced 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​ 1.14 materials, that are:​ 1.15 (1) are packaging for infant formula, as defined in United States Code, title 21, section​ 1.16 321(z);​ 1.17 (2) are packaging for medical food, as defined in United States Code, title 21, section​ 1.18 360ee(b)(3);​ 1.19 (3) are packaging for a fortified oral nutritional supplement used by persons who require​ 1.20 supplemental or sole source nutrition to meet nutritional needs due to special dietary needs​ 1.21 directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive,​ 1.22 as those terms are defined by the International Classification of Diseases, Tenth Revision;​ 1​Sec. 2.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ SENATE​ STATE OF MINNESOTA​ S.F. No. 2619​NINETY-FOURTH SESSION​ (SENATE AUTHORS: HOFFMAN, Johnson and Lang)​ OFFICIAL STATUS​D-PG​DATE​ Introduction and first reading​03/17/2025​ Referred to Environment, Climate, and Legacy​ 2.1 (4) are packaging for a product regulated as a drug or medical device by the United​ 2.2 States Food and Drug Administration, including associated components and consumable​ 2.3 medical equipment;​ 2.4 (5) are packaging for a medical equipment or product used in medical settings that is​ 2.5 regulated by the United States Food and Drug Administration, including associated​ 2.6 components and consumable medical equipment;​ 2.7 (6) are drugs, biological products, parasiticides, medical devices, or in vitro diagnostics​ 2.8 that are used to treat, or that are administered to, animals and are regulated by the United​ 2.9 States Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act,​ 2.10 United States Code, title 21, section 301 et seq., by the United States Department of​ 2.11 Agriculture under the federal Virus-Serum-Toxin Act, United States Code, title 21, section​ 2.12 151 et seq.;​ 2.13 (7) are packaging for products regulated by the United States Environmental Protection​ 2.14 Agency under the Federal Insecticide, Fungicide, and Rodenticide Act, United States Code,​ 2.15 title 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​ 2.18 or enclosures, that include content derived from primary sources related to news and current​ 2.19 events;​ 2.20 (10) are paper products used for a magazine's print publication that has a circulation of​ 2.21 less than 95,000 and that primarily includes content derived from primary sources related​ 2.22 to news and current events;​ 2.23 (11) are (9) packaging used to contain hazardous or flammable products regulated by​ 2.24 the 2012 federal Occupational Safety and Health Administration Hazard Communication​ 2.25 Standard, Code of Federal Regulations, title 29, section 1910.1200, that prevent the packaging​ 2.26 from being waste reduced or made reusable, recyclable, or compostable, as determined by​ 2.27 the commissioner;​ 2.28 (12) are (10) packaging that is being collected and properly managed through a paint​ 2.29 stewardship plan approved under section 115A.1415;​ 2.30 (13) are (11) exempt materials, as determined by the commissioner under section​ 2.31 115A.1453, subdivision 6; or​ 2.32 (14) are (12) covered materials that:​ 2​Sec. 2.​ 25-03604 as introduced​02/10/25 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​ 3.3 commercial, institutional, industrial, or business entity for the production of another product;​ 3.4 and​ 3.5 (iii) are not subsequently introduced to a any other person other than the commercial or​ 3.6 business 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​ 3.10 compliance with requirements under sections 115A.144 to 115A.1463 for a covered material​ 3.11 introduced:​ 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​ 3.14 is sold in packaging that lacks identification of a brand, the producer is the person that​ 3.15 manufactures the item;​ 3.16 (ii) if there is no person to which item (i) applies, the producer is the person that is​ 3.17 licensed to manufacture and sell or offer for sale to consumers in this state an item with​ 3.18 packaging 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​ 3.20 of the item;​ 3.21 (iv) if there is no person described in item (i), (ii), or (iii) within the United States, the​ 3.22 producer is the person who is the importer of record for the item into the United States for​ 3.23 use in a commercial enterprise that sells, offers for sale, or distributes the item in this state;​ 3.24 or​ 3.25 (v) if there is no person described in items (i) to (iv), the producer is the person that first​ 3.26 distributes 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​ 3.28 sale, or distribution:​ 3.29 (i) for packaging used to directly protect or contain the item, the producer of the packaging​ 3.30 is the same as the producer identified under clause (1); and​ 3​Sec. 3.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ 4.1 (ii) for packaging used to ship the item to a consumer, the producer of the packaging is​ 4.2 the 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),​ 4.4 the producer of the packaging is the person that first distributes the item in or into this state;​ 4.5 and​ 4.6 (4) for paper products that are magazines, catalogs, telephone directories, or similar​ 4.7 publications, 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​ 4.10 person 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​ 4.12 owner or licensee of a brand or trademark under which the paper product is used in a​ 4.13 commercial enterprise, sold, offered for sale, or distributed in or into this state, whether or​ 4.14 not 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​ 4.16 of the paper product;​ 4.17 (iv) if there is no person described in item (i), (ii), or (iii) within the United States, the​ 4.18 producer is the person that imports the paper product into the United States for use in a​ 4.19 commercial enterprise that sells, offers for sale, or distributes the paper product in this state;​ 4.20 or​ 4.21 (v) if there is no person described in items (i) to (iv), the producer is the person that first​ 4.22 distributes 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​ 4.24 in 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​ 4.26 in clauses (1) to (5) (3) that contractually assigns responsibility to the person as the producer,​ 4.27 and the person has joined a registered producer responsibility organization as the responsible​ 4.28 producer for that covered material under sections 115A.144 to 115A.1463. In the event that​ 4.29 another person is assigned responsibility as the producer under this subdivision, the producer​ 4.30 under clauses (1) to (5) (3) must provide written certification of that contractual agreement​ 4.31 to the producer responsibility organization; and​ 4​Sec. 3.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ 5.1 (ii) if the producer described in clauses (1) to (5) (3) is a business operated wholly or in​ 5.2 part as a franchise, the producer is the franchisor if that franchisor has franchisees that have​ 5.3 a 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​ 5.10 recycled 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​ 5.15 products in accordance with sections 115A.144 to 115A.1463 that encourages redesign to​ 5.16 reduce the environmental impacts and human health impacts and that reduces generation​ 5.17 of covered materials waste through waste reduction, reuse, recycling, and composting and​ 5.18 by providing for the collection, transportation, and processing of used covered materials​ 5.19 for 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​ 5.23 following:​ 5.24 (1) an evaluation of:​ 5.25 (i) existing waste reduction, reuse, recycling, and composting, as applicable, for each​ 5.26 covered materials type, including collection rates, recycling rates, composting rates, reuse​ 5.27 rates, 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​ 5.29 materials; and​ 5​Sec. 5.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ 6.1 (iii) the extent to which postconsumer recycled content, by the best estimate, is or could​ 6.2 be incorporated into each covered materials type, as applicable, including a review of market​ 6.3 and technical barriers to incorporating postconsumer materials into covered materials;​ 6.4 (2) an evaluation of covered materials in the disposal, recycling, and composting streams​ 6.5 to determine the covered materials types and amounts within each stream, using new studies​ 6.6 conducted 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​ 6.8 within a five-year time frame in multiple units of measurement, including but not limited​ 6.9 to 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,​ 6.16 subdivision 7, that consider:​ 6.17 (i) information contained in or used to prepare a needs assessment according to this​ 6.18 subdivision;​ 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​ 6.22 covered materials waste and the complete reuse, recycling, or composting of covered​ 6.23 materials to reduce environmental impacts and human health impacts;​ 6.24 (v) a preference for statewide requirements that accomplish and further the goals and​ 6.25 requirements in items (ii) to (iv) as soon as practicable and to the maximum extent achievable;​ 6.26 and​ 6.27 (vi) information from packaging and paper product producer responsibility programs​ 6.28 operating in other jurisdictions;​ 6.29 (5) an evaluation of the factors for each covered material collected for recycling or​ 6.30 composting as established in section 115A.1453, subdivision 4;​ 6​Sec. 5.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ 7.1 (6) recommended collection methods by covered materials type to maximize collection​ 7.2 efficiency, maximize feedstock quality, and optimize service and convenience for collection​ 7.3 of covered materials to be considered or that are included on lists established in section​ 7.4 115A.1453;​ 7.5 (7) proposed plans and metrics for how to measure progress in achieving performance​ 7.6 targets and statewide requirements;​ 7.7 (8) an evaluation of options for third-party certification of activities to meet obligations​ 7.8 of 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​ 7.11 financing 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​ 7.13 provider costs; and​ 7.14 (iii) availability and cost of covered services for covered materials to covered entities​ 7.15 and any other location where covered materials are introduced, including identification of​ 7.16 disparities in the availability of these services in environmental justice areas compared with​ 7.17 other areas and proposals for reducing or eliminating those disparities;​ 7.18 (10) an evaluation of investments needed to increase waste reduction, reuse, recycling,​ 7.19 and composting rates of covered materials according to the range of proposed performance​ 7.20 targets and statewide requirements, including investments in existing and new infrastructure​ 7.21 that would also:​ 7.22 (i) maintain or improve operations of existing infrastructure and accounts for waste​ 7.23 reduction, reuse, recycling, and composting of covered materials statewide;​ 7.24 (ii) expand the availability and accessibility of recycling collection services for recyclable​ 7.25 covered 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​ 7.27 covered materials;​ 7.28 (11) a recommended methodology for applying criteria and formulas to establish​ 7.29 reimbursement rates as described in section 115A.1455;​ 7.30 (12) an assessment of the viability and robustness of markets for recyclable covered​ 7.31 materials and the degree to which these markets can be considered responsible markets;​ 7​Sec. 5.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ 8.1 (13) an assessment of the level and causes of contamination of source-separated recyclable​ 8.2 materials, source-separated compostable materials and collected reusables, and the impacts​ 8.3 of 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​ 8.5 this limits one or more covered materials types from being used as a marketable feedstock,​ 8.6 and best practices producers can implement to reduce intentionally added toxic substances​ 8.7 in covered materials that could be verified through suppliers certificates of compliance,​ 8.8 testing, or other analytical and scientifically demonstrated methodology;​ 8.9 (15) an assessment of current best practices to increase public awareness, educate, and​ 8.10 complete outreach activities accounting for culturally responsive materials and methods​ 8.11 and an evaluation of the efficacy of these efforts, including assessments and evaluations of​ 8.12 current best practices and efforts on:​ 8.13 (i) using product or packaging labels as a means of informing consumers about​ 8.14 environmentally sound use and management of covered materials;​ 8.15 (ii) increasing public awareness of how to use and manage covered materials in an​ 8.16 environmentally sound manner and how to access waste reduction, reuse, recycling, and​ 8.17 composting services; and​ 8.18 (iii) encouraging behavior change to increase participation in waste reduction, reuse,​ 8.19 recycling, and composting programs;​ 8.20 (16) identification of the covered materials with the most significant environmental​ 8.21 impact, including assessing each covered material's generation of hazardous waste, generation​ 8.22 of 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​ 8.24 established in section 115A.1451, subdivision 8; and​ 8.25 (18) other items identified by the commissioner that would aid the creation of the​ 8.26 stewardship 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​ 8.30 requirements and the date by which they must be met for the following categories:​ 8.31 (1) recycling rate;​ 8​Sec. 6.​ 25-03604 as introduced​02/10/25 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,​ 9.6 including an overall percentage for all covered materials, as applicable, excluding​ 9.7 compostable materials that cannot include postconsumer recycled content due to unique​ 9.8 chemical or physical properties or health and safety requirements that prohibit introduction​ 9.9 of postconsumer recycled content.​ 9.10 (b) The commissioner may use the following information and criteria when establishing​ 9.11 statewide 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​ 9.16 materials waste and the complete reuse, recycling, or composting of covered materials to​ 9.17 reduce environmental impacts and human health impacts;​ 9.18 (5) a preference for statewide requirements that accomplish and further the goals and​ 9.19 requirements in clauses (2) to (4) as soon as practicable and to the maximum extent​ 9.20 achievable; and​ 9.21 (6) information from packaging and paper product producer responsibility programs​ 9.22 operating in other jurisdictions.​ 9.23 (c) The commissioner must consult with the producer responsibility organization on​ 9.24 establishing statewide requirements, submit proposed statewide requirements for review​ 9.25 by the board, and consider the board's recommendations before finalizing the statewide​ 9.26 requirements.​ 9.27 (d) Every five years, the commissioner must review the statewide requirements established​ 9.28 under paragraph (a). If the commissioner decides an update is not warranted at that time,​ 9.29 the commissioner must submit the reasoning to the advisory board and consider the board's​ 9.30 recommendations before making a final decision. If the commissioner decides an update is​ 9.31 warranted, the process in paragraphs (b) and (c) must be utilized.​ 9​Sec. 6.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ 10.1 (e) The producer responsibility organization must ensure the statewide requirements are​ 10.2 met.​ 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​ 10.6 a fee from each member producer that must:​ 10.7 (1) vary based on the total amount of covered materials each producer introduces in the​ 10.8 prior year calculated on a per-unit basis, such as per ton, per item, or another unit of​ 10.9 measurement;​ 10.10 (2) reflect the program costs for each covered materials type, net of commodity value​ 10.11 for that covered materials type, as well as allocated fixed costs that do not vary based on​ 10.12 covered materials type;​ 10.13 (3) incentivize using materials and design attributes that reduce the environmental impacts​ 10.14 and 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​ 10.18 product 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​ 10.25 environmental impacts and human health impacts can be reduced by the methods listed​ 10.26 under clause (3);​ 10.27 (5) prioritize reuse by charging covered materials that are managed through a reuse​ 10.28 system 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;​ 10​Sec. 7.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​ 11.1 (ii) financial obligations to complete activities described in an approved stewardship​ 11.2 plan 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​ 11.5 the program in a fiscally prudent and responsible manner.​ 11.6 EFFECTIVE DATE. This section is effective the day following final enactment.​ 11​Sec. 7.​ 25-03604 as introduced​02/10/25 REVISOR CKM/CH​