1.1 	A bill for an act
1.2 	relating to taxation; solid waste management; requiring a rebate from the solid 
1.3 	waste management tax for materials removed from the waste stream for recycling, 
1.4 	composting, or reuse; appropriating money;amending Minnesota Statutes 2024, 
1.5 	section 297H.13, subdivision 2; proposing coding for new law in Minnesota 
1.6 	Statutes, chapter 297H.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [297H.075] REBATE FOR RECYCLED AND REUSED MATERIALS.
1.9 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
1.10 	the meanings given.
1.11 	(b) "Compostable materials" has the meaning given to "source-separated compostable 
1.12 	materials" in section 115A.03, subdivision 32a, clause (3).
1.13 	(c) "Recyclable materials" has the meaning given in section 115A.03, subdivision 25a.
1.14 	(d) "Resource recovery facility" has the meaning given in section 115A.03, subdivision 
1.15 	28.
1.16 	(e) "Waste-to-energy facility" means a facility that produces refuse-derived fuel, as 
1.17 	defined in section 115A.03, subdivision 25d.
1.18 		Subd. 2.Reporting. (a) By February 1, 2026, and each February 1 thereafter, an owner 
1.19 	or operator of a resource recovery facility or waste-to-energy facility shall report to the 
1.20 	commissioner of revenue, on a form prescribed by the commissioner of revenue, the 
1.21 	following information for the previous calendar year:
2.1 	(1) the number of tons of recyclable materials that are manually or mechanically separated 
2.2 	from mixed municipal solid waste and that are recycled;
2.3 	(2) the number of tons of recyclable materials that are manually or mechanically separated 
2.4 	from mixed municipal solid waste and that are reused;
2.5 	(3) the number of tons of compostable materials that are manually or mechanically 
2.6 	separated from mixed municipal solid waste and that are subsequently composted or 
2.7 	processed in an anaerobic or aerobic digester and then composted;
2.8 	(4) the number of tons of recyclable materials that are recovered from combustor ash 
2.9 	generated at a waste-to-energy facility and that are recycled; and
2.10 	(5) the number of tons of combustor ash that are generated at a waste-to-energy facility 
2.11 	and that are utilized in road construction or another approved use.
2.12 	(b) The information in paragraph (a) must be reported separately for each clause.
2.13 		Subd. 3.Rebate calculation. (a) Based on the information submitted in subdivision 2, 
2.14 	the commissioner of revenue shall, by April 15, 2026, and each April 15 thereafter, pay a 
2.15 	rebate from the tax paid under this chapter to each operator of a resource recovery facility 
2.16 	or waste-to-energy facility reporting under subdivision 2 that is equal to the sum of:
2.17 	(1) tons reported in subdivision 2, paragraph (a), clauses (1) to (3), of materials separated 
2.18 	from waste for which tax due under this chapter was collected, multiplied by the rate of 
2.19 	$30; plus
2.20 	(2) tons reported in subdivision 2, paragraph (a), clauses (4) and (5), of materials separated 
2.21 	from waste for which tax due under this chapter was collected, multiplied by the rate of 
2.22 	$20.
2.23 	(b) The amount necessary to pay each operator of a resource recovery facility or 
2.24 	waste-to-energy facility under this section is appropriated to the commissioner of revenue 
2.25 	from the revenues allocated pursuant to section 297H.13, subdivision 2, paragraph (a).

2.26 	EFFECTIVE DATE. This section is effective July 1, 2025.

2.27 	Sec. 2. Minnesota Statutes 2024, section 297H.13, subdivision 2, is amended to read:
2.28 		Subd. 2.Allocation of revenues. (a) Of the amounts remitted under this chapter,:
2.29 	(1) the amount necessary to pay rebates under section 297H.075 is appropriated to the 
2.30 	commissioner to issue rebates; and
3.1 	(2) 70 percent of the remaining amount must be credited to the environmental fund 
3.2 	established in section 16A.531, subdivision 1.
3.3 	(b) In addition to the amounts appropriated for rebates and credited to the environmental 
3.4 	fund in paragraph (a), in fiscal year 2024 and later, three percent of the amounts remitted 
3.5 	under this chapter shall be deposited into the resource management account in the 
3.6 	environmental fund.
3.7 	(c) The remainder must be deposited into the general fund.
3.8 	(d) Beginning in fiscal year 2024 and annually thereafter, the money deposited in the 
3.9 	resource management account in the environmental fund under paragraph (b) is appropriated 
3.10 	to the commissioner of the Pollution Control Agency for distribution to counties under 
3.11 	section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11).

3.12 	EFFECTIVE DATE. This section is effective July 1, 2025.