HF 1426

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/19/2022 11:23am

A bill for an act
relating to environment; establishing carpet stewardship program; proposing coding
for new law in Minnesota Statutes, chapter 115A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [115A.143] CARPET STEWARDSHIP PROGRAM ESTABLISHMENT;
PRODUCER PARTICIPATION REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A carpet stewardship program is established to reduce
carpet-related waste generation by promoting the collection and recycling of discarded
carpet.
new text end

new text begin Subd. 2. new text end

new text begin Producer participation required. new text end

new text begin Beginning January 1, 2022, a producer may
not sell carpet in this state unless the producer is in compliance with the requirements of
sections 115A.143 to 115A.1455.
new text end

new text begin Subd. 3. new text end

new text begin Fee adjustment. new text end

new text begin It is the intent of the legislature that the stewardship assessment
be an amount sufficient to generate adequate revenue to implement the stewardship plan
and to meet the recycling rate goals set forth in the plan. The commissioner must adjust the
stewardship assessment as needed to accomplish this goal. Adjustments are exempt from
the rulemaking provisions of chapter 14, and section 14.386 does not apply.
new text end

Sec. 2.

new text begin [115A.1435] DEFINITIONS.
new text end

new text begin For purposes of sections 115A.143 to 115A.1455, the following terms have the meanings
given:
new text end

new text begin (1) "brand" means a name, symbol, word, or mark that identifies the carpet, rather than
the carpet's components, and attributes the product to the owner or licensee of the brand as
the producer;
new text end

new text begin (2) "carpet" means a manufactured article that is primarily constructed of a top visible
surface of synthetic face fibers, yarns, or tufts attached to a backing system derived from
synthetic or natural materials and that is affixed or placed on the floor or walking surface
of a commercial or residential building as a decorative or functional building interior or
exterior feature. Carpet includes broadloom carpet, modular carpet tiles, and artificial turf.
Carpet does not include handmade rugs, area rugs, or mats;
new text end

new text begin (3) "carpet installer" means a person who removes discarded carpet in the course of
installing carpet or replacing the discarded carpet with a different type of flooring;
new text end

new text begin (4) "clearinghouse" means the carpet stewardship clearinghouse established under section
115A.144;
new text end

new text begin (5) "collection site" means a site at which discarded carpet is accepted for collection and
transfer to a recycler and whose owner or operator has notified the clearinghouse that the
site accepts discarded carpet for this purpose;
new text end

new text begin (6) "discarded carpet" means carpet that is no longer used for the carpet's manufactured
purpose;
new text end

new text begin (7) "distributor" means a person who buys or otherwise acquires carpet from another
source and sells or offers to sell that carpet to a retailer in this state;
new text end

new text begin (8) "producer" means a person that:
new text end

new text begin (i) has legal ownership of the brand, brand name, or cobrand of carpet sold in the state;
new text end

new text begin (ii) imports carpet branded by a producer that meets item (i) when the producer has no
physical presence in the United States;
new text end

new text begin (iii) if items (i) and (ii) do not apply, makes unbranded carpet that is sold in the state;
or
new text end

new text begin (iv) sells carpet at wholesale or retail, does not have legal ownership of the brand, and
elects to fulfill the responsibilities of the producer for the carpet by certifying that election
in writing to the commissioner;
new text end

new text begin (9) "recycler" means a person engaged in the business of recycling;
new text end

new text begin (10) "recycling" means the process by which discarded carpet is processed and returned
to the market in the form of raw materials or products. For purposes of quantifying the
amount of discarded carpet that is recycled, only the weight of the end product of the
recycling process is considered. Recycling does not include energy recovery, energy
generation by means of combusting discarded carpet, or disposal or use of discarded carpet
within the permitted boundaries of a municipal solid waste landfill unit;
new text end

new text begin (11) "recycling rate" means the percentage of discarded carpet that is recycled. The
recycling rate is calculated by dividing the amount of discarded carpet that is collected and
recycled by the total amount of discarded carpet generated over a program year. To determine
the annual recycling rates required under the program, the amount of discarded carpet
generated must be calculated using a standard recognized methodology based on annual
sales, replacement rate, and the average weight of carpet and must be approved by the
commissioner;
new text end

new text begin (12) "retailer" means any person who offers carpet for sale at retail in this state;
new text end

new text begin (13) "sale" or "sell" means a transfer of title to carpet for consideration, including a
remote sale conducted through a sales outlet, catalog, website, or similar electronic means.
Sale or sell includes a lease through which carpet is provided to a consumer by a producer,
distributor, or retailer;
new text end

new text begin (14) "stewardship assessment" means the following, as applicable, for each square foot
of carpet sold in this state:
new text end

new text begin (i) four cents for polypropylene carpet, wool carpet, and carpet with a uniform face fiber
made with either nylon 6 or nylon 6,6; and
new text end

new text begin (ii) six cents for carpet made from polyethylene terephthalate, carpet made from
polytrimethylene terephthalate, and carpet with a nonuniform face fiber, which is
manufactured with multiple polymer types, fiber types, or both, in the face of the constructed
material;
new text end

new text begin (15) "stewardship assessment account" means an account established by the clearinghouse
in a bank chartered in Minnesota for the purposes of section 115A.1455; and
new text end

new text begin (16) "stewardship plan" means the current plan, and any amendments, approved by the
agency under section 115A.1445, subdivision 2.
new text end

Sec. 3.

new text begin [115A.144] CARPET STEWARDSHIP CLEARINGHOUSE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner must incorporate a carpet stewardship
clearinghouse as a nonprofit corporation to administer the carpet stewardship program
established under section 115A.143.
new text end

new text begin Subd. 2. new text end

new text begin Members. new text end

new text begin The commissioner must appoint 11 members to serve on the board
of the clearinghouse as follows:
new text end

new text begin (1) one representative of a statewide association representing retailers;
new text end

new text begin (2) two representatives of producers;
new text end

new text begin (3) two representatives of recyclers;
new text end

new text begin (4) one representative of statewide associations representing waste disposal companies;
new text end

new text begin (5) one representative of an environmental organization;
new text end

new text begin (6) one representative of county or municipal waste management programs;
new text end

new text begin (7) two representatives of companies that use discarded carpet to manufacture products
other than new carpet; and
new text end

new text begin (8) one representative of carpet installers.
new text end

new text begin Subd. 3. new text end

new text begin Terms; vacancies. new text end

new text begin A member must serve on the board of the clearinghouse at
the pleasure of the commissioner, or until a successor is appointed. Vacancies shall be filled
by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin Members of the clearinghouse shall serve without compensation
but must be reimbursed for travel expenses from the stewardship assessment account.
new text end

new text begin Subd. 5. new text end

new text begin Staff. new text end

new text begin The clearinghouse may hire a director and staff and may organize itself
into committees to implement sections 115A.143 to 115A.1455. Staff must be compensated
from the stewardship assessment account.
new text end

new text begin Subd. 6. new text end

new text begin Duties. new text end

new text begin The clearinghouse's duties include:
new text end

new text begin (1) preparing and implementing the stewardship plan and any necessary amendments
to the plan according to section 115A.1445;
new text end

new text begin (2) negotiating and executing agreements that provide for collecting, transporting, and
recycling discarded carpet in this state. The agreements may provide for these activities to
be undertaken voluntarily or for compensation through funds made available from the
stewardship assessment account. Nothing in this section shall be construed to require a
person to enter into an agreement with the clearinghouse in order to serve as a collection
site;
new text end

new text begin (3) by April 1, 2023, and every year thereafter, submitting an annual report to the
commissioner that describes the extent to which the goals, activities, and financial
assumptions described in the stewardship plan were achieved during the previous calendar
year. Each report must include summary information about:
new text end

new text begin (i) how much carpet was sold, collected, recycled, and otherwise disposed of, broken
down by region;
new text end

new text begin (ii) the number and location of collection sites;
new text end

new text begin (iii) program revenue, expenditures, and financial activities; and
new text end

new text begin (iv) any other information requested by the commissioner;
new text end

new text begin (4) using money in the stewardship assessment account according to section 115A.1455;
new text end

new text begin (5) notifying the commissioner and the chairs and ranking minority members of the
legislative committees with jurisdiction over environment finance if the stewardship
assessments collected during a calendar year substantially exceed or fall below the amount
required to adequately fund the carpet stewardship program;
new text end

new text begin (6) keeping the commissioner informed of the current list of collection sites;
new text end

new text begin (7) notifying the commissioner of violations of sections 115A.143 to 115A.1455 so that
the commissioner can remedy violations using the agency's authority under sections 115.071
and 116.072; and
new text end

new text begin (8) performing any other action requested by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [115A.1445] STEWARDSHIP PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Submission of plan; contents. new text end

new text begin By July 1, 2022, and every three years
thereafter, the clearinghouse must submit to the commissioner a carpet stewardship plan
that:
new text end

new text begin (1) covers a three-year period beginning on January 1 of the year following the year in
which the plan is due;
new text end

new text begin (2) includes a certification that the carpet stewardship program will provide for recycling
all discarded carpet collected at collection sites, regardless of type, producer, or constituent
components;
new text end

new text begin (3) includes contact information for each individual representing the clearinghouse;
new text end

new text begin (4) designates a program manager responsible for administering the program in this
state;
new text end

new text begin (5) lists all producers participating in, or expected to participate in, the carpet stewardship
program;
new text end

new text begin (6) lists all brands participating in, or expected to participate in, the carpet stewardship
program;
new text end

new text begin (7) describes the methods by which discarded carpet will be collected and transported
to recyclers in this state;
new text end

new text begin (8) explains how the carpet stewardship program will ensure that collection sites are
placed in all counties with a population density of greater than or equal to 100 individuals
per square mile by January 1, 2022, and all counties with a population density of greater
than or equal to 50 individuals per square mile for 2025 and thereafter;
new text end

new text begin (9) beginning with the plan due on July 1, 2024, estimates the cost of making collection
sites available in every county;
new text end

new text begin (10) explains how the clearinghouse will monitor, evaluate, and maintain the carpet
stewardship program;
new text end

new text begin (11) lists the name and business location of every collector, transporter, and recycler
that will manage discarded carpet under the program;
new text end

new text begin (12) sets program recycling rate goals for the percentage of discarded carpet produced
in this state that will be collected and recycled during each year of the plan. The recycling
rate goal must be no less than 15 percent for 2024, 20 percent for 2025 and 2026, 30 percent
for 2027 and 2028, 40 percent for 2029 and 2030, and 50 percent for 2031 and subsequent
years. The methodology used to develop the goals must be included in the plan and goals
must take into consideration:
new text end

new text begin (i) the most recent collection data from this and other states;
new text end

new text begin (ii) the estimated amount of discarded carpet disposed of annually; and
new text end

new text begin (iii) the weight of discarded carpet that is expected to be available for collection annually;
new text end

new text begin (13) describes the state of markets for discarded carpet and products made from recycled
discarded carpet and what, if any, markets need further development in order to improve
the success of the carpet stewardship program;
new text end

new text begin (14) explains the funding structure of the carpet stewardship program, including the
administrative, operational, and capital costs of the plan and the cost of payments to carpet
collectors, transporters, recyclers, and end-use markets;
new text end

new text begin (15) explains annual revenue and expense projections for the program;
new text end

new text begin (16) explains how clearinghouse activities will be independently audited on an annual
basis;
new text end

new text begin (17) includes copies of educational materials that will be used to:
new text end

new text begin (i) train operators of collection sites on how to properly collect discarded carpet and
eliminate contamination;
new text end

new text begin (ii) train carpet installers on how to properly manage discarded carpet so that it can be
collected and recycled; and
new text end

new text begin (iii) inform retail purchasers of carpet about options available through the carpet
stewardship program for handling discarded carpet and about the importance of recycling;
new text end

new text begin (18) explains how the clearinghouse will coordinate with carpet stewardship programs
in other jurisdictions; and
new text end

new text begin (19) includes any other information requested by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Review and approval of plan and plan amendments. new text end

new text begin Within 90 days of
receiving the stewardship plan or an amendment to a stewardship plan, the commissioner
must review the plan or plan amendment and approve the plan if it complies with the
requirements of this section or reject it if it does not. The commissioner must notify the
clearinghouse in writing of a decision under this subdivision, and the reasons for the decision,
within 14 days. If a plan or plan amendment is rejected, the clearinghouse must submit a
revised plan or plan amendment to the commissioner within 60 days of receipt of the rejection
notice. A plan or plan amendment may not take effect until approved under this subdivision.
new text end

Sec. 5.

new text begin [115A.145] DUTIES OF PRODUCERS, RETAILERS, INSTALLERS,
COLLECTION SITES, RECYCLERS, AND AGENCY.
new text end

new text begin Subdivision 1. new text end

new text begin Producer duties. new text end

new text begin Beginning January 1, 2022, a producer must:
new text end

new text begin (1) remit to the clearinghouse on a quarterly basis the applicable stewardship assessment
for all carpet sold in this state, information about which must be considered private and
proprietary information;
new text end

new text begin (2) provide to retail purchasers of carpet the educational materials described in the
stewardship plan; and
new text end

new text begin (3) annually register as a producer with the agency.
new text end

new text begin Subd. 2. new text end

new text begin Retailer duties. new text end

new text begin Beginning January 1, 2022, a retailer must provide the
educational materials described in the stewardship plan to retail purchasers of carpet.
new text end

new text begin Subd. 3. new text end

new text begin Installer duties. new text end

new text begin (a) Beginning January 1, 2025, a carpet installer who removes
or uninstalls discarded carpet in Hennepin, Ramsey, Anoka, Washington, or Dakota County
must dispose of the discarded carpet by taking it to a collection site in accordance with the
stewardship plan.
new text end

new text begin (b) Beginning January 1, 2028, a carpet installer who removes or uninstalls discarded
carpet in Sherburne, Wright, Carver, Scott, or Olmsted County must dispose of the discarded
carpet by taking it to a collection site in accordance with the stewardship plan.
new text end

new text begin Subd. 4. new text end

new text begin Agency duties. new text end

new text begin The commissioner must:
new text end

new text begin (1) post on the agency website a current list of producers registered with the agency
according to subdivision 1 and a current list of collection sites identified under section
115A.144, subdivision 6, clause (6);
new text end

new text begin (2) post the stewardship plan on the agency website;
new text end

new text begin (3) post to the agency website a copy of all annual accounting reports received according
to section 115A.144, subdivision 6, clause (4); and
new text end

new text begin (4) monitor and oversee the clearinghouse's implementation of the stewardship plan and
require specific actions when needed to comply with the plan or with sections 115A.143 to
115A.1455.
new text end

new text begin Subd. 5. new text end

new text begin Collection site duties. new text end

new text begin (a) Beginning January 1, 2022, a collection site must:
new text end

new text begin (1) ensure that discarded carpet accepted at the collection site is stored in a manner and
location that allows the carpet to remain dry at all times and in containers that are free of
all waste other than discarded carpet;
new text end

new text begin (2) allow each recycler to which the collection site transfers discarded carpet to house
a container approved by the recycler on site for acceptance and pickup by the recycler; and
new text end

new text begin (3) for a collection site located at a waste transfer, waste disposal, or recycling facility
permitted by the agency, charge the person transferring the discarded carpet to the collection
site the customary and proprietary collection and disposal fees.
new text end

new text begin (b) A collection site may not charge a recycler a fee for removal and transfer of discarded
carpet from the collection site.
new text end

new text begin Subd. 6. new text end

new text begin Recycler duties. new text end

new text begin Beginning January 1, 2022, a recycler must remove discarded
carpet from a container approved by the recycler under subdivision 5, paragraph (a), clause
(2), within three days of being notified by a collection site that the container is full.
new text end

Sec. 6.

new text begin [115A.1455] STEWARDSHIP ASSESSMENT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Mandatory duties and uses. new text end

new text begin With respect to the stewardship assessment
account, the clearinghouse must:
new text end

new text begin (1) hire an independent professional accounting firm to annually review and verify the
accuracy of the amount of stewardship assessments remitted to the clearinghouse by
producers according to section 115A.145, subdivision 1;
new text end

new text begin (2) deposit stewardship assessment revenue received pursuant to section 115A.145,
subdivision 1, in the stewardship assessment account;
new text end

new text begin (3) beginning January 1, 2023, pay the agency an annual fee from the stewardship
assessment account to cover the agency's costs of carpet stewardship program oversight.
The amount of the fee is the lesser of two percent of the total amount of stewardship
assessments collected during the prior calendar year, or $300,000;
new text end

new text begin (4) upon repeal of sections 115A.143 to 115A.1455, remit the balance of the stewardship
assessment account to the commissioner for deposit in the remediation fund established
under section 116.155; and
new text end

new text begin (5) authorize other expenditures from the account as authorized by sections 115A.143
to 115A.1455.
new text end

new text begin Subd. 2. new text end

new text begin Permissive uses. new text end

new text begin The clearinghouse may use money in the stewardship
assessment account:
new text end

new text begin (1) to reimburse the reasonable costs of a collection site to adapt the site for discarded
carpet collection, including but not limited to onetime costs for constructing the needed
structure to make collecting discarded carpet safe and convenient; and
new text end

new text begin (2) to pay a collection site $20 per ton for all discarded carpet collected and transferred
to a recycler according to sections 115A.143 to 115A.1455.
new text end