North Carolina 2025 2025-2026 Regular Session

North Carolina House Bill H882 Introduced / Bill

Filed 04/09/2025

                    GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2025 
H 	D 
HOUSE BILL DRH30358-NM-43  
 
 
 
Short Title: Break Free From Plastic & Forever Chemicals. 	(Public) 
Sponsors: Representative Harrison. 
Referred to:  
 
*DRH30358 -NM-43* 
A BILL TO BE ENTITLED 1 
AN ACT TO ESTABLISH EXTENDED PRODUCER RESPONSIBILITY FOR CERTAIN 2 
PRODUCERS OF PACKAGING MATERIALS, BAN CERTAIN TOXIC SUBSTANCES 3 
IN PACKAGING MATERIALS, AND BAN INTENTIONALLY ADDED PFAS IN 4 
COVERED PRODUCTS. 5 
The General Assembly of North Carolina enacts: 6 
 7 
PART I. ESTABLISH EXTENDED PRODUCER RESPONSIBILITY FOR CERTAIN 8 
PRODUCERS OF PACKAGING MATERIALS 9 
SECTION 1.(a) Article 9 of Chapter 130A of the General Statutes is amended by 10 
adding a new Part to read: 11 
"Part 2K. Extended Producer Responsibility. 12 
"§ 130A-309.250.  Definitions. 13 
Unless a different meaning is required by the context, the following definitions apply 14 
throughout this Part: 15 
(1) Collector. – Any publicly or privately owned solid waste management 16 
services or recycler that gathers discarded packaging materials from 17 
residential, commercial, industrial, or governmental establishments. 18 
(2) Fulfillment service provider. – A person that handles, on behalf of a 19 
responsible producer, products in which the producer retains a property 20 
interest and offers at least two of the following services as part of a 21 
commercial activity: (i) warehousing, (ii) packaging, and (iii) addressing and 22 
shipping. For purposes of this Part, "fulfillment service provider" does not 23 
include postal or freight service providers. 24 
(3) Packaging material. – Any part of a package or container, regardless of 25 
recyclability or compostability, including material types such as paper, plastic, 26 
glass, or metal, that is used for the containment, protection, handling, delivery, 27 
transport, distribution, and presentation of a product that is sold, offered for 28 
sale, or distributed in North Carolina. Bags are included within this definition. 29 
Packaging material does not include any of the following: 30 
a. Material, or a category of material, intended to be used for long-term 31 
storage or protection of a durable product that can be expected to be 32 
usable for that purpose for a period of at least five years. 33 
b. Medical devices and packaging that are included with products 34 
regulated as a drug, medical device, or dietary supplement under the 35 
Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 321, et seq. 36 
H.B. 882
Apr 9, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina 	Session 2025 
Page 2  	DRH30358-NM-43 
c. Packaging products used to contain substances hazardous to the 1 
environment, regulated under the Federal Insecticide, Fungicide, and 2 
Rodenticide Act, 7 U.S.C. § 136, et seq. 3 
(4) Postconsumer waste material. – As defined in G.S. 105-129.25. 4 
(5) Producer responsibility fund. – A privately held account established and 5 
managed by the producer responsibility organization pursuant to 6 
G.S. 130A-309.237(d). 7 
(6) Producer responsibility organization or organization. – A not-for-profit entity 8 
formed by one or more responsible producers to act as an agent on behalf of 9 
each producer to develop and implement a stewardship plan. 10 
(7) Readily-recyclable. – Recyclable material, as defined in G.S. 130A-290, that 11 
the Department determines can be sorted by business entities in this State and 12 
has a consistent market for purchase. 13 
(8) Recycling rate. – The percentage of discarded packaging material that is 14 
managed through recycling or reuse, which is calculated by dividing the 15 
amount of discarded packaging material collected and recycled or reused by 16 
the total amount of discarded packaging material collected over a program 17 
year. 18 
(9) Responsible producer or producer. – Any of the following: 19 
a. A person that manufactures a product contained, protected, delivered, 20 
presented, or distributed in or using packaging material and sells, 21 
offers for sale, uses in a commercial enterprise, or distributes the 22 
product in or into the State under the brand of the manufacturer. 23 
b. If sub-subdivision a. of this subdivision does not apply, a person who 24 
is not the manufacturer of the product but is the owner or licensee of a 25 
trademark under which the product contained, protected, delivered, 26 
presented, or distributed in or using packaging material is sold, offered 27 
for sale, used in a commercial enterprise, or distributed in or into the 28 
State, regardless of whether the trademark is registered. 29 
c. If sub-subdivisions a. and b. of this subdivision do not apply, a person 30 
that sells a product contained, protected, delivered, presented, or 31 
distributed in or using packaging material and is intended to be filled 32 
in the State at the point of sale. 33 
d. If sub-subdivisions a., b., and c. of this subdivision do not apply, a 34 
person that sells, offers for sale, uses in a commercial enterprise, or 35 
distributes a product contained, protected, delivered, presented, or 36 
distributed in or using packaging material. 37 
e. Fulfillment service providers. 38 
(10) Reusable. – An object or material designed to be used repeatedly for a number 39 
of use cycles. 40 
(11) Stewardship plan. – A detailed plan that describes the manner in which 41 
responsible producers shall comply with the requirements of this Part and all 42 
rules adopted by the Commission pursuant to this Part. 43 
"§ 130A-309.251.  Requirements for responsible producers. 44 
(a) Registration Required. – Each responsible producer shall register with the Department 45 
before selling, offering for sale, or distributing in North Carolina a product contained, protected, 46 
delivered, presented, or distributed in or using packaging materials. 47 
(b) Stewardship Plan Required. – No responsible producer shall sell, offer for sale, or 48 
distribute in North Carolina a product contained, protected, delivered, presented, or distributed 49 
in or using packaging materials unless the producer participates as a member of a producer 50  General Assembly Of North Carolina 	Session 2025 
DRH30358-NM-43  	Page 3 
responsibility organization for which a stewardship plan is approved by the Department, and 1 
through that participation, satisfies the requirements of subsections (c), (d), and (e) of this section. 2 
(c) Non-Reusable Packaging Material Reduction Requirements. – According to the 3 
following schedule, each responsible producer shall reduce the total amount of non-reusable 4 
packaging materials used for containing, protecting, delivering, presenting, and distributing 5 
products sold, offered for sale, or distributed in this State (i) by unit, (ii) on average, and (iii) in 6 
the aggregate: 7 
(1) Ten percent (10%) after two years following approval of the stewardship plan. 8 
(2) Twenty percent (20%) after four years following approval of the stewardship 9 
plan. 10 
(3) Thirty percent (30%) after six years following approval of the stewardship 11 
plan. 12 
(4) Forty percent (40%) after eight years following approval of the stewardship 13 
plan. 14 
The reductions required by this subsection shall be measured against the total amount of 15 
packaging material the responsible producer used for containing, protecting, delivering, 16 
presenting, and distributing the products it sold, offered for sale, or distributed in this State during 17 
the respective calendar year. 18 
(d) Recycling-Rate Requirements. – Each responsible producer shall ensure that all 19 
non-reusable packaging material, in the aggregate, used for containing, protecting, delivering, 20 
presenting, and distributing the products it sold, offered for sale, or distributed in this State is 21 
recycled at a rate consistent with the following schedule: 22 
(1) Fifty percent (50%) after five years following approval of the stewardship 23 
plan. 24 
(2) Eighty percent (80%) after eight years following approval of the stewardship 25 
plan. 26 
(3) Ninety percent (90%) after 12 years following approval of the stewardship 27 
plan. 28 
(e) Postconsumer Waste Material Content Requirements. – Each responsible producer 29 
shall ensure that all non-reusable packaging material used for containing, protecting, delivering, 30 
presenting, and distributing the products it sold, offered for sale, or distributed in this State 31 
incorporates, on average and in the aggregate, the following amount, by weight, of postconsumer 32 
waste material in accordance with the following schedule: 33 
(1) Fifty percent (50%) after five years following approval of the stewardship 34 
plan. 35 
(2) Eighty percent (80%) after eight years following approval of the stewardship 36 
plan. 37 
(3) Ninety percent (90%) after 12 years following approval of the stewardship 38 
plan. 39 
"§ 130A-309.252.  Producer responsibility organizations; participation fees. 40 
(a) Membership Requirement. – Each responsible producer shall establish or join a 41 
producer responsibility organization to act as an agent on behalf of the producer for the purposes 42 
of satisfying its obligations under this Part. A producer may participate in more than one producer 43 
responsibility organization if each organization is established for a different category of 44 
packaging materials. Any producer responsibility organization formed for the purpose of 45 
complying with this Part shall be established and operated as an organization described in section 46 
501(c)(3) of the Internal Revenue Code of 1986. 47 
(b) Participation Fees. – A producer responsibility organization shall establish 48 
participation fees for its member producers that are sufficient to cover all costs of developing and 49 
implementing the stewardship plan, including each producer's proportionate share of 50 
administrative, enforcement, and outreach and education costs. The participation fee must reflect 51  General Assembly Of North Carolina 	Session 2025 
Page 4  	DRH30358-NM-43 
the per ton costs associated with the collection, processing, transportation, and recycling and 1 
disposal of a producer's packaging material. 2 
(c) Fee Structure. – A producer responsibility organization shall structure the 3 
participation fees to provide producers with financial incentives to reward waste reduction and 4 
recycling compatibility innovations and practices and to discourage designs or practices that 5 
increase costs of managing the products. The producer responsibility organization may adjust 6 
fees to be paid by each participating producer based on factors that affect system costs. At a 7 
minimum, fees shall be variable based on the following: 8 
(1) Costs to provide curbside collection of packaging material, or other levels of 9 
collection service, that is, at a minimum, as convenient as the recycling 10 
collection service offered in the particular jurisdiction prior to the 11 
implementation of the stewardship plan. 12 
(2) Costs to process a producer's packaging material for acceptance by secondary 13 
material markets. 14 
(3) Whether the packaging material includes labels, inks, and adhesives 15 
containing heavy metals or other hazardous wastes that would contaminate 16 
the recycling process. 17 
(4) Whether the packaging material is specifically designed to be reusable or 18 
refillable and has a high reuse or refill rate. 19 
(5) The percentage of postconsumer waste material in a producer's packaging 20 
material. 21 
(6) Contributions to greenhouse gas emissions from the production, use, 22 
collection, processing, and marketing of the packaging material. 23 
The producer responsibility organization shall annually evaluate, revise, and submit an 24 
updated fee assessment schedule to the Department. 25 
(d) Producer Responsibility Fund. – A producer responsibility organization shall 26 
establish and manage a producer responsibility fund. The organization shall deposit into the fund 27 
all payments received from responsible producers in accordance with this section and shall 28 
expend those funds for the following uses: 29 
(1) To reimburse participating collectors in accordance with G.S. 130A-309.240. 30 
(2) To fund collection and convenience obligations, required pursuant to 31 
G.S. 130A-309.241. 32 
(3) To fund the outreach and education programming, required pursuant to 33 
G.S. 130A-309.243. 34 
(4) To fund the actual operating costs of the organization, which may not exceed 35 
the estimated operating costs indicated in the stewardship plan approved by 36 
the Department pursuant to G.S. 130A-309.239. 37 
(5) To pay fees assessed by the Department for the purposes of implementing this 38 
Part. 39 
(e) Payment of Participation Fees. – No later than 30 days after the approval of the 40 
stewardship plan under G.S. 130A-309.239, and quarterly thereafter, a responsible producer shall 41 
pay the producer responsibility organization any outstanding participation fees, to be deposited 42 
into the producer responsibility fund. 43 
(f) Producer Information Requirement. – A responsible producer participating in a 44 
producer responsibility organization shall provide the organization with all information 45 
necessary (i) for determining the producer's compliance with the stewardship plan and (ii) for 46 
calculating the participation fees to be assessed to the producer. 47 
"§ 130A-309.253.  Stewardship plan. 48 
(a) Each producer responsibility organization shall develop and submit a stewardship 49 
plan to the Department. Such plan shall be effective for five years and shall be reviewed and 50 
updated every five years following the approval of the initial plan. The Department may require 51  General Assembly Of North Carolina 	Session 2025 
DRH30358-NM-43  	Page 5 
the stewardship plan to be reviewed or revised prior to the five-year period if the Department has 1 
cause to believe the minimum non-reusable packaging material reduction rates, the minimum 2 
recycling rates, the minimum postconsumer waste material content rates, or other requirements 3 
established in accordance with an approved stewardship plan are not being met or followed by 4 
the responsible producer or producer responsibility organization, or if there has been a change in 5 
circumstances that warrants revision to the stewardship plan. 6 
(b) Each stewardship plan shall contain, at a minimum, all of the following: 7 
(1) Contact information for the producer responsibility organization and the 8 
responsible producers covered under the stewardship plan. 9 
(2) A comprehensive list of the packaging materials for which the producer or 10 
producer responsibility organization is responsible under the stewardship 11 
plan. 12 
(3) A description of how the producer responsibility organization, along with its 13 
member producers, will meet or exceed the requirements established in 14 
G.S. 130A-309.236. 15 
(4) A description of how the packaging materials covered under the stewardship 16 
plan will be collected and managed using environmentally sound management 17 
practices. 18 
(5) A description of how the producer responsibility organization will work with 19 
collectors to comply with the collection and convenience requirements 20 
pursuant to G.S. 130A-309.241. 21 
(6) A proposal for implementing the outreach and education program, required 22 
pursuant to G.S. 130A-309.243, in a manner that increases access to recycling 23 
throughout the State. 24 
(7) A proposal for implementing the labeling requirements pursuant to 25 
G.S. 130A-309.242, including a description of how the producer 26 
responsibility organization will ensure compliance by assisting its member 27 
producers and regularly verifying labeling claims through independent, 28 
third-party audits. 29 
(8) A description of the participation fees and the methodology used for 30 
determining the structure of the participation fees, allocated to responsible 31 
producers, that meet the requirements of this Part and are sufficient to cover 32 
the cost of developing, submitting, implementing, and updating the 33 
stewardship plan and maintaining a financial reserve sufficient to implement 34 
the stewardship plan in a financially prudent and responsible manner. 35 
(9) A description of how the producer responsibility organization plans to 36 
establish and manage the producer responsibility fund, including staffing to 37 
manage the fund, ensuring equity of access to collection opportunities for 38 
customers across the State, providing technical support to responsible 39 
producers regarding program requirements, administering and collecting 40 
payments to and reimbursements from the fund, and the investment types, if 41 
any, the organization intends to use to manage monies within the fund. 42 
(10) A description of the process for collectors to recoup all reasonable 43 
activity-based costs, both operational and capital, from the producer 44 
responsibility organization for collecting, transporting, or sorting packaging 45 
materials covered under the stewardship plan. 46 
(11) A description of how stakeholder comments were considered in the 47 
development of the stewardship plan, including a summary and analysis of the 48 
issues raised and significant changes recommended by stakeholders, a 49 
statement of the reasons why any significant changes were not incorporated 50  General Assembly Of North Carolina 	Session 2025 
Page 6  	DRH30358-NM-43 
into the proposed stewardship plan, and a description of any changes made to 1 
the proposed stewardship plan as a result of such comments. 2 
(12) Any additional information requested by the Department. 3 
(c) A producer responsibility organization shall provide stakeholders, including units of 4 
local government, municipal solid waste management facilities, recycling facilities, collectors, 5 
and other members of the general public with an opportunity to review and comment on the draft 6 
stewardship plan prior to its submission to the Department. 7 
(d) A producer responsibility organization may prepare a revised stewardship plan and 8 
submit it to the Department at any time the organization considers appropriate in response to 9 
changed circumstances, including to incorporate additional responsible producers to an existing 10 
stewardship plan. 11 
"§ 130A-309.254.  Review and approval of proposed stewardship plans. 12 
(a) No later than 90 days after the submission of the stewardship plan, the Department 13 
shall make a determination to approve the plan as submitted, approve the plan with conditions, 14 
or deny the plan. 15 
(b) In reviewing any stewardship plan under this Part, the Department shall consider 16 
whether the stewardship plan: 17 
(1) Adequately addresses all requirements set forth in G.S. 130A-309.238 with 18 
sufficient detail. 19 
(2) Provides a feasible strategy detailing how responsible producers will satisfy 20 
the requirements established in G.S. 130A-309.236. 21 
(3) Proposes participation fees that: 22 
a. Sufficiently cover the entire cost of implementing the stewardship plan 23 
and complying with all other requirements of this Part, including any 24 
rules adopted by the Commission pursuant to this Part. 25 
b. Adequately incentivize waste reduction and recycling compatibility 26 
innovations and practices and discourage designs and practices that 27 
increase the costs of managing packaging materials. 28 
c. Equitably allocate implementation costs among responsible producers. 29 
(4) Provides for widespread, convenient, and equitable collection opportunities, 30 
as required pursuant to G.S. 130A-309.241. 31 
(5) Provides for effective outreach and education programming, as required 32 
pursuant to G.S. 130A-309.243. 33 
(6) Provides a feasible strategy detailing how responsible producers will satisfy 34 
the labeling requirements pursuant to G.S. 130A-309.242, including a 35 
description of how the producer responsibility organization will verify each 36 
producer's labeling claims through an independent, third-party audit. 37 
(7) Proposes a schedule of collector reimbursement payments that are calculated 38 
in a reasonable manner, pursuant to G.S. 130A-309.240, and that cover the 39 
costs of collecting, recycling, processing, and disposing of the packaging 40 
materials listed under the stewardship plan. 41 
(8) Establishes a reasonable process for participating collectors to apply for and 42 
receive reimbursements from the producer responsibility organization. 43 
(9) Provides sufficient information to establish that the producer responsibility 44 
organization engaged in a reasonable stakeholder review process, as required 45 
pursuant to G.S. 130A-309.238(c). 46 
(10) Satisfies any other requirements adopted by the Commission. 47 
(c) No later than six months after the date the stewardship plan is approved, the producer 48 
responsibility organization and its member producers shall implement the approved plan. 49 
"§ 130A-309.255.  Collector reimbursement. 50  General Assembly Of North Carolina 	Session 2025 
DRH30358-NM-43  	Page 7 
(a) Collector Reimbursement. – A producer responsibility organization shall be 1 
responsible for calculating and dispersing funding for collectors that elect to be compensated by 2 
the producer responsibility organization for the recovery, recycling, and processing of packaging 3 
materials. 4 
(b) Eligibility. – Collectors must provide for recycling of all recyclable packaging 5 
material listed under a stewardship plan in order to be eligible for reimbursement under this 6 
section. 7 
(c) Calculation of Reimbursement. – The reimbursement rate shall be based on the cost 8 
of residential curbside collection, including the cost of curbside containers where relevant, as 9 
well as the processing cost for each readily recyclable material, the cost of handling non-readily 10 
recyclable material types collected as part of a recycling operation, the transportation cost of 11 
recycling for each material type, and any other cost factors as determined by the Department. 12 
(d) Collector Responsibilities. – 13 
(1) To facilitate the producer responsibility organization's determination of the 14 
cost of recycling, participating collectors shall annually report to the 15 
organization all information necessary for the organization to determine the 16 
collector's incurred net costs associated with the collection, processing, 17 
transportation, and recycling and disposal of packaging material covered 18 
under the stewardship plan. 19 
(2) Participating collectors shall not charge fees to customers for reimbursable 20 
costs. 21 
"§ 130A-309.256.  Collection and convenience. 22 
(a) A producer responsibility organization shall provide for widespread, convenient, and 23 
equitable access to collection opportunities for the packaging material identified under the 24 
stewardship plan. 25 
(b) A producer responsibility organization may rely on a range of means to collect various 26 
categories of packaging material, including curbside collection, depot drop-off, and retailer 27 
take-back. However, a producer responsibility organization shall provide for curbside or 28 
multifamily recycling collection services if all of the following circumstances apply: 29 
(1) The category of packaging materials is suitable for residential curbside 30 
recycling collection and can be effectively sorted by the facilities receiving 31 
the packaging material. 32 
(2) The recycling facility providing processing and sorting service agrees to 33 
accept the category of packaging material. 34 
(3) The provider of residential curbside recycling service agrees to the producer 35 
responsibility organization's reimbursement arrangement. 36 
(4) The category of packaging material is not handled through a deposit and return 37 
scheme or a buyback system that relies on a collection system other than 38 
curbside collection. 39 
"§ 130A-309.257.  Labeling. 40 
Responsible producers shall indicate on all packaging material used for containing, 41 
protecting, delivering, presenting, or distributing products sold, offered for sale, or distributed in 42 
the State (i) the percentage of postconsumer waste material content, (ii) whether the packaging 43 
material is readily recyclable, and (iii) whether the packaging material is compostable. Such 44 
labels must be in a form deemed appropriate by the Department pursuant to rules adopted by the 45 
Commission. 46 
"§ 130A-309.258.  Outreach and education. 47 
(a) A producer responsibility organization shall provide effective outreach, education, 48 
and communications to consumers throughout the State regarding: 49 
(1) Proper end-of-life management of packaging materials. 50 
(2) The location and availability of curbside and drop-off collection opportunities. 51  General Assembly Of North Carolina 	Session 2025 
Page 8  	DRH30358-NM-43 
(3) Recycling and composting instructions that are (i) consistent statewide, except 1 
as necessary to take into account differences among local ordinances and 2 
processing capabilities, (ii) easy to understand, and (iii) easily accessible. 3 
(b) The outreach and education required pursuant to subsection (a) of this section shall: 4 
(1) Be designed to achieve the packaging material requirements established 5 
pursuant to G.S. 130A-309.236. 6 
(2) Incorporate, at a minimum, electronic, print, web-based, and social media 7 
elements that local governments may utilize at their discretion. 8 
(3) Include, at a minimum, (i) consulting on education and outreach with local 9 
governments and other stakeholders, (ii) coordinating with and assisting local 10 
governments and solid waste facility operators, and other entities providing 11 
services, and (iii) developing and providing outreach and education to the 12 
diverse ethnic populations in the State. 13 
(4) Include a plan to work with responsible producers to label packaging materials 14 
with information to assist consumers in responsibly managing and recycling 15 
the packaging materials. 16 
(c) The Department shall review the effectiveness of outreach and education efforts under 17 
this section to determine whether changes are necessary to improve those outreach and education 18 
efforts and develop information that may be used to improve outreach and education efforts under 19 
this section. 20 
"§ 130A-309.259.  Reporting requirements and audits. 21 
(a) Each producer responsibility organization shall submit a report to the Department, in 22 
a manner required by the Department, no later than July 1 each year following the approval of 23 
the stewardship plan, evaluating progress toward meeting the requirements under this Part for 24 
the immediately preceding year. The report shall include all of the following: 25 
(1) The total amount of packaging material, by weight and unit, used for 26 
containing, protecting, delivering, presenting, or distributing products sold, 27 
offered for sale, or distributed into the State by each of its responsible 28 
producers in the prior calendar year. 29 
(2) Any information necessary for the Department to make a determination of the 30 
producer responsibility organization's, and its member producers', compliance 31 
with all of the following: 32 
a. The non-reusable packaging reduction requirements, as provided by 33 
G.S. 130A-309.236(c). 34 
b. The recycling-rate requirements, as provided by 35 
G.S. 130A-309.236(d). 36 
c. The postconsumer waste material content requirements, as provided 37 
by G.S. 130A-309.236(e). 38 
d. The labeling requirements, as provided by G.S. 130A-309.242. 39 
(3) The total costs of implementing the stewardship plan, accompanied by a copy 40 
of an independent, third-party financial audit verifying these costs. 41 
(4) The participation fees allocated to each of its responsible producers, including 42 
a description of the methodology used to calculate the fees. 43 
(5) An accounting of the reimbursements to participating collectors, including a 44 
description of the methodology used to calculate the reimbursements. 45 
(6) Any additional information requested by the Department. 46 
(b) The Department shall maintain the confidentiality of any information that is required 47 
to be submitted by a responsible producer or producer responsibility organization under this Part 48 
that is designated as a trade secret, as defined in G.S. 66-152(3), and that is designated as 49 
confidential or as a trade secret under G.S. 132-1.2. 50  General Assembly Of North Carolina 	Session 2025 
DRH30358-NM-43  	Page 9 
(c) The Department shall compile and publish on its website a list of responsible 1 
producers and producer responsibility organizations that are out of compliance with the 2 
applicable stewardship plan or the requirements of this Part. 3 
"§ 130A-309.260.  Fees. 4 
The Commission may adopt rules setting fees for responsible producers and producer 5 
responsibility organizations that defray the Department's cost of administering this Part, 6 
including costs related to reviewing and processing stewardship plans, overseeing the 7 
implementation of the plans, and ensuring compliance with the requirements of this Part. 8 
"§ 130A-309.261.  Penalties. 9 
(a) This Part may be enforced as provided by Part 2 of Article 1 of this Chapter. 10 
(b) If a penalty is imposed on a producer responsibility organization under this section, 11 
each responsible producer participating in the producer responsibility organization is jointly and 12 
severally liable for the payment of the penalty. 13 
"§ 130A-309.262.  Applicability. 14 
(a) Except as provided by G.S. 130A-309.236(a) and subsection (b) of this section, 15 
responsible producers are exempt from this Part when they meet any of the following exceptions 16 
in this subsection: 17 
(1) The producer generated less than two million dollars ($2,000,000) in gross 18 
revenue during the immediately preceding calendar year. 19 
(2) The producer sold, offered for sale, or distributed for sale less than 1 ton of 20 
products in this State during the immediately preceding calendar year, 21 
including packaging materials used to contain, protect, deliver, present, or 22 
distribute the product. 23 
(3) The producer conducted all product sales in this State during the immediately 24 
preceding calendar year at a single point of retail sale that was not supplied or 25 
operated as part of a franchise. 26 
(b) A responsible producer shall submit to the Department sufficient information to 27 
demonstrate that the producer, pursuant to subsection (a) of this section, is excluded from 28 
regulation under this Part. 29 
"§ 130A-309.263.  Rulemaking. 30 
The Commission may adopt rules to implement this Part." 31 
SECTION 1.(b) This section becomes effective October 1, 2025, except that 32 
G.S. 130A-309.236(b), 130A-309.240, 130A-309.241, 130A-309.242, and 130A-309.243 33 
become effective October 1, 2026. 34 
 35 
PART II. BAN CERTAIN TOXIC SUBSTANCES IN PACKAGING MATERIALS 36 
SECTION 2.(a) Article 9 of Chapter 130A of the General Statutes is amended by 37 
adding a new Part to read: 38 
"Part 2L. Ban Manufacture and Distribution of Certain Toxic Substances in Packaging 39 
Materials. 40 
"§ 130A-309.270.  Prohibition on manufacture and distribution of packaging materials 41 
containing certain toxic substances. 42 
(a) No person may knowingly do any of the following: 43 
(1) Manufacture packaging material containing a covered toxic substance. 44 
(2) Distribute, sell, or offer for sale, for use within the State or for export from the 45 
State, any packaging material containing a covered toxic substance. 46 
(b) For purposes of this section, the following definitions apply: 47 
(1) Covered toxic substance. – Includes the following substances: 48 
a. Ortho-phthalates. 49 
b. Bisphenols. 50 
c. PFAS. 51  General Assembly Of North Carolina 	Session 2025 
Page 10  	DRH30358-NM-43 
d. Lead and lead compounds. 1 
e. Hexavalent chromium and compounds. 2 
f. Cadmium and cadmium compounds. 3 
g. Mercury and mercury compounds. 4 
h. Benzophenone and its derivatives. 5 
i. Halogenated flame retardants. 6 
j. Perchlorate. 7 
k. Formaldehyde. 8 
l. Toluene. 9 
m. Polyvinyl chloride. 10 
n. Polystyrene. 11 
o. Polycarbonate. 12 
(2) Packaging material. – As defined in G.S. 130A-309.235. 13 
(3) PFAS. – Perfluoroalkyl and polyfluoroalkyl substances, a class of fluorinated 14 
organic chemicals containing at least one fully fluorinated carbon atom. 15 
"§ 130A-309.271.  Civil penalties. 16 
(a) The Secretary may assess a civil penalty of not more than five thousand dollars 17 
($5,000) or, if the violation involves a hazardous waste, as defined in G.S. 130A-290, of not more 18 
than twenty-five thousand dollars ($25,000) against any person who violates a requirement of 19 
this Part. 20 
(b) If any action or failure to act for which a penalty may be assessed under subsection 21 
(a) of this section is a repeat offense, the Secretary may assess a penalty not to exceed ten 22 
thousand dollars ($10,000) per occurrence. A penalty for multiple occurrences shall not exceed 23 
two hundred thousand dollars ($200,000) in any month. 24 
(c) In determining the amount of the penalty, the Secretary shall consider the factors set 25 
out in G.S. 143B-282.1(b). The procedures set out in G.S. 143B-282.1 shall apply to civil penalty 26 
assessments that are presented to the Commission for final agency decision. 27 
(d) The Secretary shall notify any person assessed a civil penalty for the assessment and 28 
the specific reasons therefor by registered or certified mail or by any means authorized by 29 
G.S. 1A-1, Rule 4. Contested case petitions shall be filed pursuant to G.S. 150B-23 within 30 30 
days of receipt of the notice of assessment. 31 
(e) Requests for remission of civil penalties shall be filed with the Secretary. Remission 32 
requests shall not be considered unless made within 30 days of receipt of the notice of assessment. 33 
Remission requests must be accompanied by a waiver of the right to a contested case hearing 34 
pursuant to Chapter 150B of the General Statutes and a stipulation of the facts on which the 35 
assessment was based. Consistent with the limitations in G.S. 143B-282.1(c) and (d), remission 36 
requests may be resolved by the Secretary and the violator. If the Secretary and the violator are 37 
unable to resolve the request, the Secretary shall deliver the remission request and the 38 
recommended action to the Committee on Civil Penalty Remissions of the Environmental 39 
Management Commission appointed pursuant to G.S. 143B-282.1(c). 40 
(f) If any civil penalty has not been paid within 30 days after notice of assessment has 41 
been served on the violator, the Secretary shall request the Attorney General to institute a civil 42 
action in the superior court of any county in which the violator resides or the violator's principal 43 
place of business is located in order to recover the amount of the assessment, unless the violator 44 
contests the assessment as provided in subsection (d) of this section or requests remission of the 45 
assessment in whole or in part as provided in subsection (e) of this section. If any civil penalty 46 
has not been paid within 30 days after the final agency decision or order has been served on the 47 
violator, the Secretary shall request the Attorney General to institute a civil action in the superior 48 
court of any county in which the violator resides or the violator's principal place of business is 49 
located to recover the amount of the assessment. A civil action must be filed within three years 50 
of the date the final agency decision or court order was served on the violator." 51  General Assembly Of North Carolina 	Session 2025 
DRH30358-NM-43  	Page 11 
SECTION 2.(b) This section becomes effective October 1, 2025, and applies to 1 
persons on or after that date who knowingly manufacture, distribute, sell, or offer for sale any 2 
packaging materials containing covered toxic substances. 3 
 4 
PART III. BAN INTENTIONALLY ADDED PFAS IN COVERED PRODUCTS 5 
INCLUDING FOOD PACKAGING, COMPOSTABLE CONTAINERS, AND 6 
PACKAGING COMPONENTS, AND TO APPROPRIATE FUNDS TO THE 7 
DEPARTMENT OF EN VIRONMENTAL QUALITY 8 
SECTION 3. Article 21A of Chapter 143 of the General Statutes is amended by 9 
adding a new Part to read: 10 
"Part 8. Ban Manufacture, Use, and Distribution of Certain Toxic Chemicals. 11 
"§ 143-215.104BB.  Prohibition on manufacture, use, and distribution of PFAS within the 12 
State. 13 
(a) Definitions. – The following definitions apply in this Part: 14 
(1) Compostable. – An item that reliably and entirely breaks down and becomes 15 
part of usable compost no later than 180 days after proper disposal. 16 
Compostable items may be made from organic materials such as bagasse, 17 
sugarcane, bamboo, paper, hay, or certified compostable plastics that meet the 18 
American Society for Testing and Materials (ASTM) standard specifications 19 
for industrially compostable plastics D6400 and compostable plastic coatings 20 
D6868. Permitted compostable plastics, often marketed as biodegradable, 21 
must be clearly labeled with the applicable standard on the product. 22 
(2) Covered product. – Any product subject to the requirements of this Part, 23 
including food packaging. 24 
(3) Food package or food packaging. – A package, compostable container, or 25 
packaging component that is intended for direct food content. 26 
(4) Intentionally added PFAS. – Any of the following: 27 
a. PFAS added to a product or one of the product's components that have 28 
a function or technical effect in the product, including the PFAS 29 
components of products that constitute added chemicals or products 30 
thereof. 31 
b. PFAS used or produced during the manufacture or processing of a 32 
product introduced into or onto the product, including any source of 33 
PFAS that is reasonably known to be present, such as using processing 34 
agents, mold release agents, or fluorination. 35 
(5) Manufacturer. – The person who manufactures a product or whose brand 36 
name is affixed to the product. If the product is imported into the United 37 
States, the term "manufacturer" includes the importer or first domestic 38 
distributor of the product, if the person that manufactured or assembled the 39 
product or whose brand name is affixed to the product does not have a 40 
principal place of business in the United States. 41 
(6) PFAS. – Perfluoroalkyl and polyfluoroalkyl substances, a class of fluorinated 42 
organic chemicals containing at least one fully fluorinated carbon atom. 43 
(7) Product. – An item manufactured, assembled, packaged, or otherwise 44 
prepared for sale to consumers, including its product components, sold or 45 
distributed for personal, residential, commercial, or industrial use, including 46 
for use in making other products. This does not include used products offered 47 
for sale or resale. 48 
(8) Product component. – An identifiable component of a product, regardless of 49 
whether the manufacturer of the product is the manufacturer of the 50 
component. 51  General Assembly Of North Carolina 	Session 2025 
Page 12  	DRH30358-NM-43 
(9) Product label. – A display of written, printed, or graphic material that appears 1 
on, or is affixed to, the exterior of a product, or its exterior container or 2 
wrapper that is visible to a consumer, if the product has an exterior container 3 
or wrapper. 4 
(b) No person may knowingly manufacture, sell, or offer for sale any covered product 5 
that contains intentionally added PFAS in this State. A manufacturer of a covered product shall 6 
provide persons that offer the covered product for sale in this State with a certificate of 7 
compliance stating, at a minimum, that the covered product is in compliance with the 8 
requirements of this Part and does not contain any intentionally added PFAS. A certificate of 9 
compliance provided under this subsection shall be signed by an authorized official or 10 
representative of the manufacturer. The certificate of compliance may be provided to persons 11 
through electronic means. 12 
(c) This Part shall not apply to the sale or resale of used products." 13 
SECTION 4.(a) There is appropriated from the General Fund to the Department of 14 
Environmental Quality the sum of one hundred thousand dollars ($100,000) in nonrecurring 15 
funds for the 2025-2026 fiscal year to implement the provisions of this section. 16 
SECTION 4.(b) This section becomes effective July 1, 2025. 17 
SECTION 5. Except as otherwise provided, this act becomes effective October 1, 18 
2025. 19