1.1                          A bill for an act 
  1.2             relating to the environment; creating state and local 
  1.3             government procurement policies and administrative 
  1.4             practices to ensure sustainability; providing 
  1.5             penalties; appropriating money; amending Minnesota 
  1.6             Statutes 2000, sections 16B.121; 16B.122, subdivision 
  1.7             2; 16B.32, by adding a subdivision; 16B.54, by adding 
  1.8             a subdivision; 18B.063; 115A.055, subdivision 1; 
  1.9             115A.15, by adding a subdivision; and 471.345, by 
  1.10            adding subdivisions; proposing coding for new law in 
  1.11            Minnesota Statutes, chapters 16C; and 115A. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 16B.121, is 
  1.14  amended to read: 
  1.15     16B.121 [PURCHASE OF RECYCLED, REPAIRABLE, AND DURABLE 
  1.16  MATERIALS.] 
  1.17     The commissioner shall take the give preference to products 
  1.18  with recycled content and recyclability of commodities to be 
  1.19  purchased into consideration in bid specifications.  When 
  1.20  feasible and when the price of recycled materials does not 
  1.21  exceed the price of nonrecycled materials by more than ten 
  1.22  percent, the commissioner, and state agencies when purchasing 
  1.23  under delegated authority, shall purchase recycled materials.  
  1.24  In order to maximize the quantity and quality of recycled 
  1.25  materials purchased, the commissioner, and state agencies when 
  1.26  purchasing under delegated authority, may also use other 
  1.27  appropriate procedures to acquire recycled materials at the most 
  1.28  economical cost to the state. 
  2.1      When purchasing commodities and services, the commissioner, 
  2.2   and state agencies when purchasing under delegated authority, 
  2.3   shall apply and promote the preferred waste management practices 
  2.4   listed in section 115A.02, with special emphasis on reduction of 
  2.5   the quantity and toxicity of materials in waste.  The 
  2.6   commissioner, and state agencies when purchasing under delegated 
  2.7   authority, in developing bid specifications, shall consider the 
  2.8   extent to which a commodity or product is durable, reusable, or 
  2.9   recyclable and marketable through the state resource recovery 
  2.10  program and the extent to which the commodity or product 
  2.11  contains postconsumer material. 
  2.12     Sec. 2.  Minnesota Statutes 2000, section 16B.122, 
  2.13  subdivision 2, is amended to read: 
  2.14     Subd. 2.  [PURCHASES; PRINTING.] (a) Whenever practicable, 
  2.15  a public entity shall:  
  2.16     (1) purchase uncoated office paper and printing paper; 
  2.17     (2) purchase recycled content paper with at least ten 
  2.18  percent postconsumer material by weight; 
  2.19     (3) purchase paper which has not been dyed with colors, 
  2.20  excluding pastel colors; 
  2.21     (4) (3) until July 1, 2004, purchase recycled content paper 
  2.22  that is manufactured using little or no chlorine bleach or 
  2.23  chlorine derivatives; 
  2.24     (5) (4) use no more than two colored inks, standard or 
  2.25  processed, except in formats where they are necessary to convey 
  2.26  meaning; 
  2.27     (6) (5) use reusable binding materials or staples and bind 
  2.28  documents by methods that do not use glue; 
  2.29     (7) (6) use soy-based inks; and 
  2.30     (8) (7) produce reports, publications, and periodicals that 
  2.31  are readily recyclable within the state resource recovery 
  2.32  program. 
  2.33     (b) Paragraph (a), clause (1), does not apply to coated 
  2.34  paper that is made with at least 50 percent postconsumer 
  2.35  material. 
  2.36     (c) A public entity shall print documents on both sides of 
  3.1   the paper where commonly accepted publishing practices allow. 
  3.2      (d) Notwithstanding paragraph (a), clause (2), and section 
  3.3   16B.121, copier paper purchased by a state agency must contain 
  3.4   at least ten percent postconsumer material by fiber content. A 
  3.5   public entity shall purchase paper with no less than 30 percent 
  3.6   postconsumer recycled content. 
  3.7      (e) Beginning July 1, 2004, a public entity shall purchase 
  3.8   paper that is manufactured without chlorine or chlorine 
  3.9   compounds, including but not limited to chlorine dioxide. 
  3.10     (f) Beginning July 1, 2010, a public entity must purchase 
  3.11  only paper that does not contain wood fiber from sources 
  3.12  harvested on lands that were predominantly planted with trees 
  3.13  prior to January 1, 1997.  Prior to July 1, 2010, the 
  3.14  commissioner shall encourage public entities to purchase paper 
  3.15  with the maximum practicable recycled content. 
  3.16     <b>[EFFECTIVE DATE.]</b> Paragraph (d) is effective the day 
  3.17  following final enactment. 
  3.18     Sec. 3.  Minnesota Statutes 2000, section 16B.32, is 
  3.19  amended by adding a subdivision to read: 
  3.20     Subd. 2a.  [ENERGY EFFICIENT BUILDINGS.] (a) The 
  3.21  commissioner shall perform an energy audit of all existing 
  3.22  structures by December 31, 2006.  The audit shall evaluate each 
  3.23  structure for retrofitting with energy conserving features, 
  3.24  including but not limited to, passive solar design, active solar 
  3.25  heating and cooling, insulation, solar electric, geothermal 
  3.26  wells, heat pumps, natural lighting, large gauge wiring and 
  3.27  plumbing, on-off lighting sensors, and temperature monitors and 
  3.28  regulators and other techniques and technologies defined by the 
  3.29  commission.  The audit must assess the cost of installing each 
  3.30  feature and the economic savings to the state for incorporating 
  3.31  the feature. 
  3.32     (b) By December 31, 2006, the commissioner shall report to 
  3.33  the committees of the legislature with jurisdiction over the 
  3.34  environment and state buildings the findings from the audit 
  3.35  together with recommendations for the application of 
  3.36  energy-saving technologies to existing buildings. 
  4.1      Sec. 4.  Minnesota Statutes 2000, section 16B.54, is 
  4.2   amended by adding a subdivision to read: 
  4.3      Subd. 9.  [ENERGY EFFICIENCY] In purchasing vehicles, the 
  4.4   commissioner shall give preference to vehicles with the highest 
  4.5   possible fuel efficiency, while also purchasing vehicles that 
  4.6   have the lowest life-cycle cost of ownership.  For the purposes 
  4.7   of this subdivision, "life-cycle cost" is the initial cost less 
  4.8   the fuel savings over the life of a vehicle, and "life of a 
  4.9   vehicle" means 150,000 miles.  The commissioner shall set goals 
  4.10  for the increased use of E85 fuel in state vehicles with 
  4.11  particular emphasis on maximizing the use of E85 in the 
  4.12  metropolitan area. 
  4.13     Sec. 5.  [16C.125] [ENVIRONMENTAL REQUIREMENTS] 
  4.14     (a) All requests for bids must specify that preference will 
  4.15  be given for products that have a high level of recycled content 
  4.16  or are refurbished.  All products purchased by an agency must 
  4.17  list the percentage of recycled content on accompanying 
  4.18  documentation. 
  4.19     (b) For two or more equivalent products available from the 
  4.20  central store and equipment service, the commissioner shall 
  4.21  assess a surcharge to agencies of 15 percent for products that 
  4.22  contain the least recycled content, the highest toxicity, or are 
  4.23  not reusable in other products. 
  4.24     (c) In all requests for bids, the commissioner shall assign 
  4.25  a price preference of two percent for all bids from vendors that 
  4.26  have been given an ISO 14000 accreditation or its equivalent as 
  4.27  determined by the office of environmental assistance. 
  4.28     (d) All requests for bids for computers and other 
  4.29  electronic products must specify that the vendor will take back 
  4.30  the product once the useful life of the product has been 
  4.31  reached.  The commissioner shall develop a list of electronic 
  4.32  and other products appropriate for this requirement in 
  4.33  consultation with the office of environmental assistance. 
  4.34     (e) Product leasing instead of purchasing may be used for 
  4.35  products to meet the requirements of paragraph (d) if the lease 
  4.36  requires that the product be returned to the vendor for 
  5.1   recycling or reuse at the end of its useful life.  
  5.2      (f) The commissioner shall inform all existing and 
  5.3   potential vendors of the preference for recycled products, 
  5.4   including any price preferences under paragraph (c) and section 
  5.5   16B.121 that may be in effect for products with recycled content 
  5.6   and for refurbished products. 
  5.7      (g) All requests for bids for grounds care must specify 
  5.8   that: 
  5.9      (1) phosphorus must not be applied to land unless the need 
  5.10  is documented by a soil test; 
  5.11     (2) slow-release fertilizers must be used; 
  5.12     (3) the recommendations of the Minnesota extension service 
  5.13  must be followed for times and amounts of fertilizer 
  5.14  applications; 
  5.15     (4) biological controls are the preferred method of 
  5.16  treatment; and 
  5.17     (5) pesticides must only be applied as a last resort and in 
  5.18  accordance with integrated pest management techniques.  
  5.19     Sec. 6.  Minnesota Statutes 2000, section 18B.063, is 
  5.20  amended to read: 
  5.21     18B.063 [STATE USES OF PESTICIDES AND NUTRIENTS.] 
  5.22     The state shall use integrated pest management techniques 
  5.23  in its management of public lands, including roadside 
  5.24  rights-of-way, parks, and forests; and shall use planting 
  5.25  regimes that minimize the need for pesticides and added 
  5.26  nutrients., including the following: 
  5.27     (1) phosphorus must not be applied to land unless the need 
  5.28  is documented by a soil test; 
  5.29     (2) slow-release fertilizers must be used; 
  5.30     (3) the recommendations of the Minnesota extension service 
  5.31  must be followed for times and amounts of fertilizer 
  5.32  applications; 
  5.33     (4) biological controls are the preferred method of 
  5.34  treatment; and 
  5.35     (5) pesticides must only be applied as a last resort and in 
  5.36  accordance with integrated pest management techniques.  
  6.1      Sec. 7.  Minnesota Statutes 2000, section 115A.055, 
  6.2   subdivision 1, is amended to read: 
  6.3      Subdivision 1.  [ORGANIZATION OF OFFICE.] The office of 
  6.4   environmental assistance is an agency in the executive branch 
  6.5   headed by a director appointed by the commissioner of the 
  6.6   pollution control agency governor, with the advice and consent 
  6.7   of the senate, to serve in the unclassified service.  The 
  6.8   director may appoint two assistant directors in the unclassified 
  6.9   service and may appoint other employees, as needed, in the 
  6.10  classified service.  The office is a department of the state 
  6.11  only for purposes of section 16B.37, subdivision 2. 
  6.12     Sec. 8.  [115A.0725] [ENVIRONMENTAL SUSTAINABILITY.] 
  6.13     It is the policy of the state to:  (1) pursue the 
  6.14  sustainable management, use, and protection of resources to 
  6.15  achieve the state's economic, environmental, and social goals; 
  6.16  (2) promote using, developing, and protecting resources at a 
  6.17  rate and in a manner that enables people to meet their current 
  6.18  needs without compromising the ability of future generations to 
  6.19  meet their own needs; and (3) encourage cooperation and 
  6.20  collaboration between public and private sectors in the 
  6.21  development of sustainable environmental and economic products 
  6.22  and practices. 
  6.23     The office is the lead agency in coordinating and 
  6.24  implementing efforts in this act to move Minnesota toward 
  6.25  sustainability.  All departments and agencies must cooperate 
  6.26  with the office in this effort.  The office may award up to 
  6.27  $100,000 in bonuses to state employees who generate ideas or 
  6.28  make exemplary progress toward a sustainable Minnesota.  The 
  6.29  office shall report annually to the committees of the 
  6.30  legislature with jurisdiction over environment policy and 
  6.31  finance and governmental operations policy and finance on 
  6.32  progress toward compliance with this act.  The office shall 
  6.33  establish a program for monitoring compliance with this act.  To 
  6.34  the extent possible, the information generated by the monitoring 
  6.35  program must be reported in a format accessible and 
  6.36  understandable to the general public. 
  7.1      Sec. 9.  Minnesota Statutes 2000, section 115A.15, is 
  7.2   amended by adding a subdivision to read: 
  7.3      Subd. 11.  [PURCHASING POLICIES.] By December 31, 2002, the 
  7.4   commissioner, in consultation with the office of environmental 
  7.5   assistance, shall develop sustainability purchasing policies, 
  7.6   targets, and benchmarks for each of the following product 
  7.7   areas:  paper products, building construction, cleaning products 
  7.8   and coatings, plastic lumber, general purpose motor vehicles, 
  7.9   purchase of E85 and biodiesel fuel, office furniture, and other 
  7.10  products considered appropriate by the commissioner and the 
  7.11  office. 
  7.12     Sec. 10.  Minnesota Statutes 2000, section 471.345, is 
  7.13  amended by adding a subdivision to read: 
  7.14     Subd. 14a.  [PAPER PURCHASES.] (a) Effective on the day 
  7.15  following final enactment, a municipality shall purchase paper 
  7.16  with no less than 30 percent postconsumer recycled content. 
  7.17     (b) Municipalities shall purchase paper that is 
  7.18  manufactured without chlorine or chlorine compounds, including 
  7.19  but not limited to, chlorine dioxide. 
  7.20     (c) Municipalities shall purchase only paper that does not 
  7.21  contain wood fiber from sources harvested on lands that were 
  7.22  predominantly planted with trees prior to January 1, 1997.  
  7.23  Prior to the effective dates in paragraph (e), municipalities 
  7.24  shall make reasonable attempts to purchase paper with the 
  7.25  maximum practicable recycled content. 
  7.26     (d) For the purposes of this subdivision, "municipality" 
  7.27  includes units of government in the metropolitan area and, under 
  7.28  section 136F.581, the Minnesota state colleges and universities. 
  7.29     (e) Paragraphs (b) to (d) are effective for counties and 
  7.30  cities and the Minnesota state colleges and universities on July 
  7.31  1, 2006, and for school districts and other municipalities on 
  7.32  July 1, 2011. 
  7.33     Sec. 11.  Minnesota Statutes 2000, section 471.345, is 
  7.34  amended by adding a subdivision to read: 
  7.35     Subd. 14b.  [ENERGY EFFICIENT VEHICLES.] (a) Municipalities 
  7.36  shall give preference in vehicle purchases to vehicles with the 
  8.1   highest possible fuel efficiency, while also purchasing vehicles 
  8.2   that have the lowest life-cycle cost of ownership.  For the 
  8.3   purposes of this subdivision, "life-cycle cost" is the initial 
  8.4   cost less the fuel savings over the life of a vehicle, and "life 
  8.5   of a vehicle" means 150,000 miles.  Municipalities shall set 
  8.6   goals for the increased use of E85 fuel in municipal vehicles. 
  8.7      (b) For the purposes of this subdivision, "municipality" 
  8.8   includes units of government in the metropolitan area and, under 
  8.9   section 136F.581, the Minnesota state colleges and universities. 
  8.10     (c) Paragraph (a) is effective for counties and cities and 
  8.11  the Minnesota state colleges and universities on July 1, 2006, 
  8.12  and for school districts and other municipalities on July 1, 
  8.13  2011. 
  8.14     Sec. 12.  [NONWOOD FIBER PAPER PLANT LOAN GUARANTEE 
  8.15  PROGRAM.] 
  8.16     If the director of the office of environmental assistance 
  8.17  determines that the state will have difficulty meeting the 
  8.18  requirements of Minnesota Statutes, section 16B.122, subdivision 
  8.19  2, paragraph (f), the commissioner shall make available under 
  8.20  Minnesota Statutes, section 115A.0716, a loan guarantee for a 
  8.21  loan of up to $30,000,000 for the construction of a paper plant 
  8.22  to produce paper from crops other than trees.  The terms of the 
  8.23  loan shall guarantee up to 80 percent of the value if the 
  8.24  recipient of the loan is a Minnesota resident operating a family 
  8.25  farm, a family farm corporation, a family farm partnership, or 
  8.26  an authorized farm partnership as those terms are defined in 
  8.27  Minnesota Statutes, section 500.24; and up to 60 percent of the 
  8.28  value if the recipient is another entity.  As a condition of 
  8.29  making available the loan guarantee, the office of environmental 
  8.30  assistance shall negotiate a long-term price and supply 
  8.31  agreement with the recipient.  
  8.32     Sec. 13.  [APPROPRIATIONS.] 
  8.33     (a) $2,000,000 is appropriated from the general fund to the 
  8.34  office of environmental assistance for the biennium ending June 
  8.35  30, 2003, to work with cities, counties, school districts, and 
  8.36  other taxing authorities to implement this act. 
  9.1      (b) $2,000,000 is appropriated from the general fund to the 
  9.2   University of Minnesota extension service for the biennium 
  9.3   ending June 30, 2003, to work with farmers on production of 
  9.4   alternative crops used in the manufacture of paper from 
  9.5   nonforest lands, a loan program for farmers to plant 
  9.6   long-rotation crops such as hybrid poplar, and other research by 
  9.7   the University of Minnesota for production of alternative crops. 
  9.8      (c) $1,000,000 is appropriated from the general fund to the 
  9.9   office of environmental assistance for the biennium ending June 
  9.10  30, 2003, for education, outreach, and support for vendors 
  9.11  qualifying for accreditation under ISO 14000 or its equivalent 
  9.12  under section 5. 
  9.13     (d) $1,000,000 is appropriated from the general fund to the 
  9.14  commissioner of administration for the biennium ending June 30, 
  9.15  2003, for vendor certification, product exploration and 
  9.16  research, and monitoring to further the purposes of purchasing 
  9.17  products that further the goal of sustainability.  These funds 
  9.18  shall include working with vendors to minimize packaging for 
  9.19  products supplied to the state. 
  9.20     (e) $10,000,000 is appropriated from the general fund to 
  9.21  the commissioner of administration for the biennium ending June 
  9.22  30, 2004, for the audit in section 3. 
  9.23     (f) $150,000 is appropriated from the general fund to the 
  9.24  office of environmental assistance for the biennium ending June 
  9.25  30, 2003, for the purposes of section 12.