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