Spending priorities, policy provisions in new law aim to protect state’s natural resources

Money to plant trees, programs to reduce waste, plans to monitor water and air quality are a few of the provisions included in the environment and natural resources supplemental budget and policy law.

It also provides additional funding for enforcement actions to protect the state’s natural resources and adjusts the inventory of state-owned land.

Sponsored by Rep. Rick Hansen (DFL-South St. Paul) and Sen. Foung Hawj (DFL-St. Paul), the law takes effect July 1, 2024, unless noted otherwise.

HF3911*/SF3887/CH116

Packaging waste reduction

A key component of the new law is the “Packaging Waste and Cost Reduction Act,” a statewide extended producer responsibility program.

It’s estimated 40% of the waste stream comes from packaging. By shifting more responsibility to producers, the law aims to encourage waste reduction through redesign, reuse, recycling and composting.

The law requires producers, with some exceptions, to be assessed an annual fee on a per unit basis to reimburse local waste management providers for their costs. The reimbursement would be phased in starting with 50% by 2029, 75% by 2030 and 90% by 2031. (Art. 2, Sec. 10; Art. 5, Secs. 1-25)

Pollution Control Agency

For eight years starting in fiscal year 2025, $1 million each year will be appropriated from the General Fund to update the public water inventory. Additionally, public waters will be defined by statute rather than their placement on the inventory. (Art. 3, Sec. 48)

The law calls for $14.9 million to support the work of the Pollution Control Agency, as well as authorizing the agency to use $5 million from a 2023 appropriation for a climate resiliency and water infrastructure grant program to leverage federal climate pollution reduction grant money.

Other PCA appropriations include:

• $6.03 million for legal costs;

• $2.98 million to address air pollution in environmental justice areas;

• $1.1 million to monitor air pollution in Hennepin, Ramsey, Washington and Olmsted counties;

• $1 million to build and operate a mobile emissions monitor;

• $1 million from the environmental fund for a pilot program offering rebates to buy electric lawnmowers and snowblowers with priority going to residents of environmental justice areas;

• $593,000 to fund composting pilot projects at multi-unit residences; and

• $550,000 to clean up 12 acres of tax-forfeited land in Olmsted County that has become a dumping ground for old tires and other waste. (Art. 1, Sec. 2)

There is also $1.19 million to fund studies researching climate adaptation costs, per- and polyfluoroalkyl-substances in sewage sludge, and state salt and nitrogen fertilizer purchases.

Beginning annually by Feb. 1, 2025, a PCA report is due to the Legislature that details the purchase of deicing salt by state agencies, excluding the Department of Transportation, and strategies to meet a reduction goal that no later than Jan. 1, 2030, state agencies will reduce the purchase of deicing salt by 25% from the level first reported in 2025. (Art. 1, Sec. 2; Art. 2, Secs. 8, 19-20).

The law beefs up the PCA’s enforcement authority, allows the agency to recoup oversight costs under a negotiated settlement, and increases penalties for repeated violations. (Art. 2, Secs. 13-16)

To help achieve the state’s waste management goals, effective May 22, 2024, the law sets a priority list to manage food waste, going from reducing the amount generated, to donations, animal feed, composting and then anaerobic digestion. (Art. 2, Sec. 7)

A boat wrap stewardship program must be implemented by Sept. 1, 2025, that requires sellers of the plastic protective wrap to collect and recycle it. (Art. 2, Secs. 9)

Other PCA policy provisions include:

• requiring the PCA to encourage recovery of waste heat from wastewater treatment;

• requiring a waste composition study of the state’s landfills, recycling centers and transfer stations. The study is due every three years and rotates facilities that are participating;

• allowing the executive branch to create a community resilience award, recognizing excellence in climate adaptation;

• effective Jan. 1, 2025, banning the sale of most lightbulbs containing mercury, except bulbs used for photocopying, holography or sterilization; and

• creating a critical materials recovery task force to develop ways to “mine” materials like cobalt, copper, lithium, nickel or platinum from discarded products. (Art. 2, Secs. 1, 10, 21-23, 28)

Department of Natural Resources

There is also a $22.2 million appropriation to the DNR, which includes $9.3 million from the natural resources fund, $8.2 million from the game and fish fund, $4.4 million from the General Fund, and $417,000 from the permanent school fund.

Among the appropriations is $5 million for community tree planting grants, including carve outs of $300,000 each to Northfield and St. Peter. There is also $2 million to plant trees in state parks.

Other appropriations include:

• $2.6 million to implement a digital licensing system;

• $1.5 million for an all-terrain vehicle grant-in-aid program;

• $1.3 million to make improvements at the International Wolf Center in Ely;

• $1.3 million to develop a plan to address increasing litigation costs;

• $1.2 million to build and maintain the Prospector Loop ATV trail in St. Louis County;

• $200,000 to reimburse local law enforcement for unsafe ice search and rescue operations; and

• $200,000 to prepare a report on reopening the General C.C. Andrews State Nursery in Pine County. The law also removes a prohibition on state nurseries providing more than 10 million units of planting stock annually. (Art. 1, Sec. 3)

Among the policy provisions in the law is one that establishes a framework to regulate and receive royalties from possible helium and hydrogen production. (Art. 3, Secs. 21-25, 55)

Other provisions will:

• make some forestry industry data private;

• allow the DNR to donate or sell bison for herd management;

• require aftermarket snowmobile mufflers to be stamped certifying they meet DNR requirements;

• restrict the use of nitrogen fertilizer for farming state land in the karst regions of southeast Minnesota;

• eliminate a special season for hunting Canada goose;

• permit out-of-state imports of deer and elk heads if they are delivered to a licensed taxidermist within 48 hours;

• allow the sale of fat from bear and other lawfully taken game;

• expand an apprentice hunting program to include trappers;

• give landowners the option to keep a nuisance beaver legally killed on their land;

• require water-quality monitoring at some state fish hatcheries;

• make all trout fishing seasons the same;

• allow the taking of lake sturgeon, shovelnose sturgeon and paddlefish beyond the Boundary Waters and St. Croix River;

• allow the importation of bait until 2027;

• require a report on recreational uses of the approximately 2.5 million acres of public school trust fund lands to be used to determine the amount of money to be allocated to the permanent school fund from recreational use fees; and

• designate the state bee, the rusty patched bumblebee, as a state endangered species. (Art. 3, Secs. 2, 4, 6, 12-13, 32-38, 40, 43-45, 51-52, 54)

Board of Water and Soil Resources

The law calls for $1.95 million to the Board of Water and Soil Resources for manure management programs, adaptive phosphorus management in the Red River, and the Lawns to Legumes program, which is designed to increase pollinator habitat.

The law creates a pollinator account and makes Lawns to Legumes data private. (Art. 1, Sec. 4; Art. 4, Secs. 3-4)

Metropolitan Council

Of the $5.53 million designated to the Metropolitan Council. $3.2 million is for community tree planting grants, including a $688,000 set aside for South St. Paul, and $1.4 million to plant trees in metro area parks and trails.

There is also money to replace a pedestrian bridge in St. Paul Park’s Lions Levee Park and to fund new fishing piers in the metropolitan area parks. (Art. 1, Sec. 5)

State-owned lands

The law will require, when divesting of land within bands of an American Indian reservation, the DNR to first offer the parcels to affected bands at the appraised value.

The law makes additions to Banning State Park in Pine County, Feather Hennepin State Park in Mille Lacs County, and Lake Louise State Park in Mower County.

It abolishes the Hill-Anex Mine State Park in Itasca County, closing the site while mineral extraction leases are in place. It also abolishes Upper Sioux Agency State Park according to state law passed in 2023.

The law authorizes the sale of tax forfeited or surplus land in Aitkin, Chisago, Crow Wing, Hubbard, Mille Lacs, Redwood, Roseau, and St. Louis counties.

Additionally, the Minnesota Historical Society will convey portions of the Lower Sioux Agency Historic Site to the Lower Sioux Indian Community.

Each of these state land sections took effect May 22, 2024. (Art. 8, Secs. 4-18)

The law also:

• clarifies responsibility of the DNR, Department of Agriculture and Board of Animal Health for managing feral swine and fur farms and creates a new fur farm license;

• maintains that it is a state goal to “maximize the coordination, effectiveness, transparency, and accountability of environmental review, associated environmental permitting, and other regulatory actions for facilities in Minnesota,” and provides some direction for coordination among agencies; and

• modifies conflict of interest policies for the Legislative-Citizen Commission on Minnesota Resources. (Art. 6 Sec. 3; Art. 7, Sec. 1; Art. 9, Secs. 1-2)

HF3911* / SF3887 / CH116