HF 2267

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/01/2019 05:42pm

A bill for an act
relating to environment; providing for carpet product stewardship program;
requiring a report; amending Minnesota Statutes 2018, section 115A.142; 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.141] CARPET PRODUCTS; STEWARDSHIP PROGRAM;
STEWARDSHIP PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "brand" means a name, symbol, word, or mark that identifies carpet, rather than its
components, and attributes the carpet 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 used in commercial or single or
multifamily residential buildings, is affixed or placed on the floor or building walking
surface as a decorative or functional building interior or exterior feature, and is primarily
constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a
backing system derived from synthetic or natural materials. Carpet includes, but is not
limited to, a commercial or residential broadloom carpet or modular carpet tiles. Carpet
includes a pad or underlayment used in conjunction with a carpet. Carpet does not include
handmade rugs, area rugs, or mats;
new text end

new text begin (3) "discarded carpet" means carpet that is no longer used for its manufactured purpose;
new text end

new text begin (4) "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;
new text end

new text begin (5) "recycling" means the process of collecting and preparing recyclable materials and
reusing the materials in their original form or using them in manufacturing processes that
do not cause the destruction of recyclable materials in a manner that precludes further use;
new text end

new text begin (6) "retailer" means any person who offers carpet for sale at retail in the state;
new text end

new text begin (7) "reuse" means donating or selling a collected carpet back into the market for its
original intended use, when the carpet retains its original purpose and performance
characteristics;
new text end

new text begin (8) "sale" or "sell" means transfer of title of 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,
wholesaler, or retailer;
new text end

new text begin (9) "stewardship assessment" means the amount added to the purchase price of carpet
sold in the state that is necessary to cover the cost of collecting, transporting, and processing
postconsumer carpets by the producer or stewardship organization pursuant to a product
stewardship program;
new text end

new text begin (10) "stewardship organization" means an organization appointed by one or more
producers to act as an agent on behalf of the producer to design, submit, and administer a
product stewardship program under this section; and
new text end

new text begin (11) "stewardship plan" means a detailed plan describing the manner in which a product
stewardship program under subdivision 2 will be implemented.
new text end

new text begin Subd. 2. new text end

new text begin Product stewardship program. new text end

new text begin For all carpet sold in the state, producers must,
individually or through a stewardship organization, implement and finance a statewide
product stewardship program that manages carpet by reducing carpet's waste generation,
promoting its reuse and recycling, and providing for negotiation and execution of agreements
to collect, transport, and process carpet for end-of-life recycling and reuse.
new text end

new text begin Subd. 3. new text end

new text begin Requirement for sale. new text end

new text begin (a) On and after July 1, 2021, no producer, wholesaler,
or retailer may sell carpet or offer carpet for sale in the state unless the carpet's producer
participates in an approved stewardship plan, either individually or through a stewardship
organization.
new text end

new text begin (b) Each producer must operate a product stewardship program approved by the agency
or enter into an agreement with a stewardship organization to operate, on the producer's
behalf, a product stewardship program approved by the agency.
new text end

new text begin Subd. 4. new text end

new text begin Requirement to submit plan. new text end

new text begin (a) On or before March 1, 2021, and before
offering carpet for sale in the state, a producer must submit a stewardship plan to the agency
and receive approval of the plan or must submit documentation to the agency that
demonstrates the producer has entered into an agreement with a stewardship organization
to be an active participant in an approved product stewardship program as described in
subdivision 2. A stewardship plan must include all elements required under subdivision 5.
new text end

new text begin (b) At least every three years, a producer or stewardship organization operating a product
stewardship program must update the stewardship plan and submit the updated plan to the
agency for review and approval.
new text end

new text begin (c) It is the responsibility of the entities responsible for each stewardship plan to notify
the agency within 30 days of any significant changes or modifications to the plan or its
implementation. Within 30 days of the notification, a written plan revision must be submitted
to the agency for review and approval.
new text end

new text begin Subd. 5. new text end

new text begin Stewardship plan content. new text end

new text begin A stewardship plan must contain:
new text end

new text begin (1) certification that the product stewardship program will accept all discarded carpet
regardless of which producer produced the carpet and its individual components;
new text end

new text begin (2) contact information for the individual and the entity submitting the plan and for all
producers participating in the product stewardship program;
new text end

new text begin (3) a description of the methods by which discarded carpet will be collected in all areas
in the state without relying on end-of-life fees, including an explanation of how the collection
system will be convenient and adequate to serve the needs of small businesses and residents
in the seven-county metropolitan area initially and expanding to areas outside the
seven-county metropolitan area starting July 1, 2022;
new text end

new text begin (4) a description of how the adequacy of the collection program will be monitored and
maintained;
new text end

new text begin (5) the names and locations of collectors, transporters, and recycling facilities that will
manage discarded carpet;
new text end

new text begin (6) a description of how the discarded carpet and the carpet's components will be safely
and securely transported, tracked, and handled from collection through final recycling and
processing;
new text end

new text begin (7) a description of the method that will be used to reuse, deconstruct, or recycle the
discarded carpet to ensure that the product's components, to the extent feasible, are
transformed or remanufactured into finished products for use;
new text end

new text begin (8) a description of the promotion and outreach activities that will be used to encourage
participation in the collection and recycling programs and how the activities' effectiveness
will be evaluated and the program modified, if necessary;
new text end

new text begin (9) the proposed stewardship assessment. The producer or stewardship organization
must propose a stewardship assessment for any carpet sold in the state. The proposed
stewardship assessment must be reviewed by an independent auditor to ensure that the
assessment does not exceed the costs of the product stewardship program, and the
independent auditor must recommend an amount for the stewardship assessment;
new text end

new text begin (10) evidence of adequate insurance and financial assurance that may be required for
collection, handling, and disposal operations;
new text end

new text begin (11) five-year performance goals, including an estimate of the percentage of discarded
carpet that will be collected, reused, and recycled during each of the first five years of the
stewardship plan. The performance goals must include a specific escalating goal for the
amount of discarded carpet that will be collected and recycled and reused during each year
of the plan. The performance goals must be based on:
new text end

new text begin (i) the most recent collection data available for the state;
new text end

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

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

new text begin (iv) actual collection data from other existing stewardship programs.
new text end

new text begin The stewardship plan must state the methodology used to determine these goals;
new text end

new text begin (12) carpet design changes that will be considered to reduce toxicity, water use, or energy
use or to increase recycled content, recyclability, or carpet longevity; and
new text end

new text begin (13) a discussion of market development opportunities to expand the use of recovered
carpet, with consideration of expanding processing activity near areas of collection.
new text end

new text begin Subd. 6. new text end

new text begin Consultation required. new text end

new text begin (a) Each stewardship organization or individual producer
submitting a stewardship plan must consult with stakeholders, including retailers, installers,
collectors, recyclers, local government, customers, and citizens, during development of the
plan; solicit stakeholder comments; and attempt to address any stakeholder concerns
regarding the plan before submitting the plan to the agency for review.
new text end

new text begin (b) The producer or stewardship organization must invite comments from local
governments, communities, and citizens to report their satisfaction with services, including
education and outreach, provided by the product stewardship program. The information
must be submitted to the agency and used by the agency in reviewing proposed updates or
changes to the stewardship plan.
new text end

new text begin Subd. 7. new text end

new text begin Agency review and approval. new text end

new text begin (a) Within 90 days after receiving a proposed
stewardship plan, the agency must determine whether the plan complies with subdivision
5. If the agency approves a plan, the agency must notify the applicant of the plan approval
in writing. If the agency rejects a plan, the agency must notify the applicant in writing of
the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must
submit a revised plan to the agency within 60 days after receiving notice of rejection.
new text end

new text begin (b) Any proposed changes to a stewardship plan must be approved by the agency in
writing.
new text end

new text begin Subd. 8. new text end

new text begin Plan availability. new text end

new text begin All draft and approved stewardship plans must be placed on
the agency's website for at least 30 days and made available at the agency's headquarters
for public review and comment.
new text end

new text begin Subd. 9. new text end

new text begin Conduct authorized. new text end

new text begin A producer or stewardship organization that organizes
collection, transport, and processing of carpet under this section is immune from liability
for the conduct under state laws relating to antitrust, restraint of trade, unfair trade practices,
and other regulation of trade or commerce only to the extent that the conduct is necessary
to plan and implement the producer's or organization's chosen organized collection or
recycling system.
new text end

new text begin Subd. 10. new text end

new text begin Producer responsibilities. new text end

new text begin (a) On and after the date of implementation of a
product stewardship program under this section, a producer of carpet must add the
stewardship assessment, as established according to subdivision 5, clause (9), to the cost of
the carpet sold to retailers and distributors in the state by the producer.
new text end

new text begin (b) Producers of carpet or the stewardship organization must provide consumers with
educational materials regarding the stewardship assessment and product stewardship program.
The materials must include, but are not limited to, information regarding available end-of-life
management options for carpet offered through the product stewardship program and
information that notifies consumers that a charge for operating the product stewardship
program is included in the purchase price of carpet sold in the state.
new text end

new text begin Subd. 11. new text end

new text begin Retailer responsibilities. new text end

new text begin (a) On and after July 1, 2021, no carpet may be sold
in the state unless the carpet's producer is participating in an approved stewardship plan.
new text end

new text begin (b) On and after the implementation date of a product stewardship program under this
section, each retailer or distributor, as applicable, must add the amount of the stewardship
assessment to the purchase price of all carpet sold in the state.
new text end

new text begin (c) Any retailer may participate, on a voluntary basis, as a designated collection point
pursuant to a product stewardship program under this section and in accordance with
applicable law.
new text end

new text begin (d) No retailer or distributor shall be found to be in violation of this subdivision if, on
the date the carpet was ordered from the producer or its agent, the producer was listed as
compliant on the agency's website according to subdivision 14.
new text end

new text begin Subd. 12. new text end

new text begin Stewardship reports. new text end

new text begin Beginning October 1, 2022, producers of carpet sold
in the state must individually or through a stewardship organization submit an annual report
to the agency describing the product stewardship program. At a minimum, the report must
contain:
new text end

new text begin (1) a description of the methods used to collect, transport, and process carpet in all
regions of the state;
new text end

new text begin (2) the weight of all carpet collected in all regions of the state and a comparison to the
performance goals and recycling rates established in the stewardship plan;
new text end

new text begin (3) the amount of unwanted carpet collected in the state by method of disposition,
including reuse, recycling, and other methods of processing;
new text end

new text begin (4) identification of the facilities processing carpet and the number and weight processed
at each facility;
new text end

new text begin (5) an evaluation of the program's funding mechanism;
new text end

new text begin (6) samples of educational materials provided to consumers and an evaluation of the
effectiveness of the materials and the methods used to disseminate the materials; and
new text end

new text begin (7) a description of progress made toward achieving carpet design changes according
to subdivision 5, clause (12).
new text end

new text begin Subd. 13. new text end

new text begin Sales information. new text end

new text begin Sales information provided to the commissioner under
this section is classified as private or nonpublic data, as specified in section 115A.06,
subdivision 13.
new text end

new text begin Subd. 14. new text end

new text begin Agency responsibilities. new text end

new text begin The agency must provide, on its website, a list of
all compliant producers and brands participating in stewardship plans that the agency has
approved and a list of all producers and brands the agency has identified as noncompliant
with this section.
new text end

new text begin Subd. 15. new text end

new text begin Local government responsibilities. new text end

new text begin (a) A city, county, or other public agency
may choose to participate voluntarily in a carpet product stewardship program.
new text end

new text begin (b) Cities, counties, and other public agencies are encouraged to work with producers
and stewardship organizations to assist in meeting product stewardship program recycling
obligations, by providing education and outreach or using other strategies.
new text end

new text begin (c) A city, county, or other public agency that participates in a product stewardship
program must report for the first year of the program to the agency using the reporting form
provided by the agency on the cost savings as a result of participation and describe how the
savings were used.
new text end

new text begin Subd. 16. new text end

new text begin Administrative fee. new text end

new text begin (a) The stewardship organization or individual producer
submitting a stewardship plan must pay the agency an annual administrative fee. The agency
must set the fee at an amount that, when paid by every stewardship organization or individual
producer that submits a stewardship plan, is adequate to cover the agency's full costs of
administering and enforcing this section. The agency may establish a variable fee based on
relevant factors, including, but not limited to, the portion of carpet sold in the state by
members of the organization compared to the total amount of carpet sold in the state by all
organizations submitting a stewardship plan.
new text end

new text begin (b) The total amount of annual fees collected under this subdivision must not exceed
the amount necessary to cover costs incurred by the agency in connection with administering
and enforcing this section.
new text end

new text begin (c) The agency must identify the direct program development or regulatory costs it incurs
under this section before stewardship plans are submitted and must establish a fee in an
amount adequate to cover those costs, which must be paid by a stewardship organization
or individual producer that submits a stewardship plan.
new text end

new text begin (d) A stewardship organization or individual producer subject to this subdivision must
pay the agency's administrative fee under paragraph (a) on or before July 1, 2021, and
annually thereafter, and the agency's onetime development fee under paragraph (c) on or
before July 1 the year after submitting a stewardship plan. Each year after the initial payment,
the annual administrative fee may not exceed five percent of the aggregate stewardship
assessment collected for the preceding calendar year.
new text end

new text begin (e) The agency must deposit the fees collected under this section into a product
stewardship account.
new text end

Sec. 2.

Minnesota Statutes 2018, section 115A.142, is amended to read:

115A.142 REPORT TO LEGISLATURE AND GOVERNOR.

As part of the report required under section 115A.121, the commissioner of the Pollution
Control Agency shall provide a report to the governor and the legislature on the
implementation of deleted text begin section deleted text end new text begin sections 115A.141 and new text end 115A.1415.

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2019.
new text end