HF5070

Purpose

Create a Sustainable Construction and Demolition Waste Transition Grants Program to help fund infrastructure that moves Minnesota away from using unlined construction and demolition (C&D) landfills. The bill also authorizes the sale of state bonds to support this program and codifies its framework in Minnesota law.

Main Provisions

• Establishment of grant program

  • The commissioner may award grants to help cover the capital costs of infrastructure projects needed to transition away from unlined C&D landfills.
  • Grants can support projects that process and manage C&D waste, including collection, processing, waste reduction, reuse, recycling, resource recovery, and disposal, and address hazardous substances and problem materials in the C&D waste stream. Projects may also handle non-construction and demolition waste as an ancillary function.
  • Projects must align with policies in Minnesota Statutes section 115A.02.

• Eligible grantees

  • For projects funded from the bond proceeds fund grant account: cities, counties, solid waste management districts, sanitary districts, townships.
  • For projects funded from the general fund grant account: any person.

• Grant accounts and funding sources

  • A sustainable construction and demolition waste transition grant account is created in the bond proceeds fund (funded by state bond proceeds).
  • A separate sustainable construction and demolition waste transition grant account is created in the general fund (funded from appropriations and other available money).
  • Money in these accounts may be used to acquire land or an interest in land and to predesign, design, construct, and improve public or private infrastructure that furthers the program’s purposes.

• Funding levels and preferences

  • Infrastructure grants may cover up to 75 percent of eligible project expenses.
  • Enhanced landfill cover grants may cover up to 50 percent of eligible expenses.
  • Grant awards must give preference to:
  • Creating a regional system to transition away from unlined landfilling of C&D waste.
  • Reducing the amount of C&D waste disposed by prioritizing reduction, reuse, recycling, and resource recovery.
  • Serving environmental justice areas.
  • Maximizing environmental, human health, and economic benefits.

• Enhanced landfill cover grants

  • The commissioner may award grants to help finalize enhanced cover systems to close unlined C&D landfills.
  • Preference criteria are the same as for basic infrastructure grants and include demonstrating an effective cover design based on the Hydrologic Evaluation of Landfill Performance (HELP) model to protect groundwater and assess site-specific risk to human health and the environment, along with compliance status.

Funding and Bonding

• Appropriation

  • A total of 118,000,000 is appropriated to the Pollution Control Agency for grants under the relevant statute.
  • Of this amount, 59,000,000 is from the general fund (in fiscal year 2027) and 59,000,000 is from the bond proceeds fund.

• Bond sale

  • The commissioner of management and budget shall issue bonds up to 59,000,000 to provide the money appropriated from the bond proceeds fund, following the applicable state bonding laws and constitutional provisions.

Significant Changes to Law

• Creates a new Sustainable Construction and Demolition Waste Transition Grants Program codified in Minnesota Statutes, with two dedicated funding streams (bond proceeds fund and general fund).
• Establishes grant accounts and eligibility rules for different types of grantees and sets substantial grant coverage percentages (75% for infrastructure; 50% for enhanced cover).
• Introduces prioritization criteria focused on regional systems, waste reduction, environmental justice, and broad public health and economic benefits.
• Adds a requirement to use the HELP model for evaluating landfill risk and groundwater protection for enhanced landfill cover projects.

Relevant Terms - sustainable construction and demolition waste transition grants program - unlined construction and demolition landfills - construction and demolition (C&D) waste - grant accounts (bond proceeds fund; general fund) - eligible grantees (cities, counties, solid waste management districts, sanitary districts, townships; any person) - infrastructure grants (up to 75% of eligible expenses) - enhanced landfill cover grants (up to 50% of eligible expenses) - environmental justice areas - regional system - waste reduction, reuse, recycling, resource recovery - hazardous substances and problem materials - Hydrologic Evaluation of Landfill Performance (HELP) model - groundwater protection - appropriations and bond issuance (general fund; bond proceeds fund)