Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0200 Compare Versions

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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
1515 RELATING TO HEALTH AND SAFETY -- EXTENDED PRODUCER RESPONSIBIL ITY
1616 FOR PACKAGING
1717 Introduced By: Senators Valverde, Gu, Sosnowski, Lawson, Raptakis, DiMario, Miller,
1818 Ujifusa, and Mack
1919 Date Introduced: February 16, 2023
2020 Referred To: Senate Environment & Agriculture
2121
2222
2323 It is enacted by the General Assembly as follows:
2424 SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby 1
2525 amended by adding thereto the following chapter: 2
2626 CHAPTER 99 3
2727 EXTENDED PRODUCER RESPONSIBILITY FOR PACKAGING 4
2828 23-99-1. Findings -- Purpose. 5
2929 (a) Towns and cities in Rhode Island bear much of the burden of recycling and disposing 6
3030 of post-consumer waste; however, they have little control over sources of waste, particularly 7
3131 packaging waste. 8
3232 (b) Unrecyclable single-use packaging is a common contaminant in recycling loads in 9
3333 Rhode Island. Recycling loads rejected from the Rhode Island resource recovery materials 10
3434 recycling facility contribute to waste and recycling costs borne by towns and cities. 11
3535 (c) Rhode Island’s central landfill is projected to reach capacity by 2034. Single-use 12
3636 packaging makes up approximately sixteen percent (16%) of the waste buried in the landfill each 13
3737 year. 14
3838 (d) Single-use plastic packaging is a significant contributor to litter and ocean debris. As 15
3939 of 2022, more than sixteen million tons (16,000,000 tt) of plastic waste washes into the ocean each 16
4040 year. 17
4141 (e) Single-use packaging has significant environmental impacts on a local and global scale, 18
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4545 including polluting our waters, contributing to climate-damaging emissions, and creating litter. 1
4646 (f) It is in the best interests of the health, safety, and welfare of residents and visitors to 2
4747 Rhode Island to protect our environment and natural resources by reducing non-reusable, non-3
4848 recyclable, and toxic packaging and to achieve a more equitable relationship between packaging 4
4949 producers and local governments and communities. 5
5050 23-99-2. Definitions. 6
5151 As used in this chapter: 7
5252 (1) "Auditor general" means the person appointed pursuant to § 22-13-1 to carry out the 8
5353 duties specified in § 22-13-4. 9
5454 (2) "Beverage container" means a container used to contain all drinks in liquid form and 10
5555 intended for human consumption. 11
5656 (3) "Bio-plastic" or "bio-plastics" means plastic produced from biological sources such as 12
5757 vegetable fats and oils, polysaccharides, sugar, proteins, or other materials that are designed to be 13
5858 biodegradable. 14
5959 (4) "Brand" means any mark, word, name, symbol, design, device, or graphical element or 15
6060 a combination thereof, including a registered or unregistered trademark, that identifies and 16
6161 distinguishes a product from other products. 17
6262 (5) "Commissioner" means the commissioner of the department of environmental 18
6363 management. 19
6464 (6) "Department" means the Rhode Island department of environmental management. 20
6565 (7) "Discarded/discards" means packaging material that has been used for its intended 21
6666 purpose and is no longer needed by consumers, businesses, institutions, and other users, and can be 22
6767 managed through reuse, recycling, or disposal. 23
6868 (8) "Disposal" means the landfilling or incineration of packaging material. "Disposal" shall 24
6969 also include energy recovery or energy generation by any means, including, but not limited to, 25
7070 combustion, pyrolysis, gasification, solvolysis, thermal desorption, waste to fuel, or any other 26
7171 chemical conversion process, or molecular conversion process. "Disposal" shall also include the 27
7272 use of materials as landfill cover. 28
7373 (9) "Environmental justice community" means any neighborhood or community which is 29
7474 composed predominantly of persons of color or persons below the poverty line, that is subject to a 30
7575 disproportionate burden of environmental hazards. 31
7676 (10) "Inspector general" means the individual appointed pursuant to § 23-99-14. 32
7777 (11) "Local government" means any municipal corporation, governmental subdivision of 33
7878 the state, local government unit, special district, school, local or regional board, commission, or 34
7979
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8282 authority authorized by law to plan or provide for waste management services for a specific 1
8383 geographical area. 2
8484 (12) "Packaging" or "packaging material" means a discrete material or category of material, 3
8585 regardless of recyclability, including, but not limited to, such material types as paper, plastic, glass, 4
8686 metal, or multi-material, that is used for the containment, protection, handling, delivery, transport, 5
8787 distribution, or presentation of another product that is sold, offered for sale, imported, or distributed 6
8888 in the state. 7
8989 "Packaging" and "packaging material" do not include: 8
9090 (i) "Medical devices and packaging" which are included with products regulated as a drug, 9
9191 medical device, or dietary supplement by the United States Food and Drug Administration under 10
9292 the federal Food, Drug, and Cosmetic Act, 21 U.S.C. Sec. 321 et seq., Sec. 3.2(E) of 21 U.S. Code 11
9393 of Federal Regulations, or the Dietary Supplement Health and Education Act; 12
9494 (ii) "Animal biologics", including vaccines, bacterins, antisera, diagnostic kits, and other 13
9595 products or biological origin, and other covered materials regulated by the United States 14
9696 Department of Agriculture under the Virus, Serum, Toxin Act, 21 U.S.C. Sec. 151-159; 15
9797 (iii) Packaging regulated by the federal Insecticide, Fungicide, and Rodenticide Act, 7 16
9898 U.S.C. Sec. 136 et seq. or other applicable federal law, rule, or regulation; and 17
9999 (iv) Beverage containers subject to a returnable container deposit, if applicable. 18
100100 (13) "Packaging reduction organization" means the nonprofit entity or entities contracted 19
101101 by the department and authorized to collect producer fees, assist producers with compliance with 20
102102 the requirements of this chapter, provide technical assistance to producers, and implement the 21
103103 packaging reduction and recycling program. 22
104104 (14) "Packaging reduction and recycling program" or "program" means the program 23
105105 implemented by the packaging reduction organization, and overseen by the department, to reduce 24
106106 packaging, assess and collect information and payments from producers based on the amount of 25
107107 packaging used by the producer to contain, protect, deliver, present, or distribute their products, in 26
108108 order to pay for the development of packaging reduction programs including, but not limited to, 27
109109 reusable and refillable packaging systems and infrastructure, reimbursements to local government 28
110110 to cover the cost of packaging recycling, and investments in education and outreach. 29
111111 (15) "Post-consumer recycled material" means new material produced using material 30
112112 resulting from the recovery, separation, collection and reprocessing of material that would 31
113113 otherwise be disposed of or processed as waste and that was originally sold for consumption. "Post-32
114114 consumer recycled material" does not include post-industrial material or pre-consumer material, or 33
115115 material generated by means of advanced recycling, chemical recycling, combustion, gasification, 34
116116
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119119 incineration, pyrolysis, solvolysis, thermal desorption, waste-to-energy, waste-to-fuel, or any other 1
120120 chemical or molecular conversion process. 2
121121 (16) "Producer" means: 3
122122 (i) A person or entity that manufactures or uses in commercial enterprise a product sold, 4
123123 offered for sale, contained, protected, delivered, presented, or distributed in or using packaging into 5
124124 the state under the brand of the manufacture; or 6
125125 (ii) If subsection (16)(i) of this section does not apply, a person or entity that is not the 7
126126 manufacturer of the product, but is the owner or licensee of a trademark, regardless of whether the 8
127127 trademark is registered, under which a product is sold, offered for sale, contained, protected, 9
128128 delivered, presented, or distributed in or using packaging; or 10
129129 (iii) If subsections (16)(i) and (16)(ii) of this section do not apply, a person or entity that 11
130130 imports a product that is contained, protected, delivered, or presented in packaging, into the United 12
131131 States or the state for use in commercial enterprise in the state; or 13
132132 (iv) An entity that manufactures or uses in a commercial enterprise, sells, offers for sale, 14
133133 or distributes the packaging material in the state under the brand of the manufacturer; and 15
134134 (v) "Producer" includes a franchisor of a franchise located in the state but does not include 16
135135 the franchisee operating that franchise. 17
136136 (17) "Product line" means a group of related products all marketed under a single brand 18
137137 name that is sold by the same producer to distinguish products from each other for better usability 19
138138 for customers. 20
139139 (18) "Recyclable" means a product or packaging material: 21
140140 (i) That can be sorted by entities that process post-consumer materials generated in the 22
141141 state; 23
142142 (ii) That has a consistent regional market for purchase by end users in the production of 24
143143 new products; and 25
144144 (iii) Which can be recycled with minimal losses of material during processing and 26
145145 manufacturing. Whether a product or packaging type meets these criteria shall be determined by an 27
146146 annual review process as described in § 23-99-6. 28
147147 "Recyclable" does not include material processed through advanced recycling, chemical 29
148148 recycling, combustion, gasification, incineration, pyrolysis, solvolysis, thermal desorption, waste-30
149149 to-energy, waste-to-fuel, or any other chemical or molecular conversion process. 31
150150 (19) "Recycled" means the use of discarded packaging materials or products in the 32
151151 production of a new product or packaging in place of virgin materials. Material will not be 33
152152 considered "recycled" if it is used as landfill cover. "Recycled" material does not include 34
153153
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156156 contaminants, residues, and other process losses. 1
157157 (20) "Recycling" means the series of activities by which material is: 2
158158 (i) Collected, transported, sorted, and processed; 3
159159 (ii) Used in industrial feedstocks in place of virgin materials to manufacture new products 4
160160 with minimal loss of material quality and quantity, as determined through the process set forth in § 5
161161 23-99-6. "Recycling" does not include energy recovery or energy generation by any means, 6
162162 including, but not limited to, advanced recycling, chemical recycling, combustion, gasification, 7
163163 incineration, pyrolysis, solvolysis, thermal desorption, waste-to-energy, waste-to-fuel, or any other 8
164164 chemical or molecular conversion process. It also does not include landfill disposal of discarded 9
165165 material or discarded product component materials, including the use of materials as landfill cover. 10
166166 (21) "Recycling rate" means the percentage of any given packaging type that is ultimately 11
167167 recycled. The recycling rate for any packaging material shall be calculated as the total weight of 12
168168 packaging that is recycled in a given year divided by the total weight of packaging generated. 13
169169 Material losses (contaminants and residues) accruing during collection, processing and 14
170170 manufacturing new products do not count as recycled and should not be in the numerator of the 15
171171 equation. 16
172172 (22) "Reuse" means the return of packaging back into the economic stream for use in the 17
173173 same kind of application intended for the original packaging, without effectuating a change in the 18
174174 original composition of the package, the identity of the product, or the components thereof. 19
175175 (23) "Reuse and refill system" means a program or set of mechanisms designed to facilitate 20
176176 multiple uses of packaging. Mechanisms may include, but are not limited to, deposits, incentives, 21
177177 curbside collection, collection kiosks, refill stations, dishwashing facilities, and re-distribution 22
178178 networks. 23
179179 (24) "Reusable or refillable packaging and containers" means packaging material and 24
180180 containers that are specifically designed and manufactured to maintain its shape and structure, and 25
181181 be materially durable for repeated sanitizing, washing, and reuse. 26
182182 (25) "Toxic substance" means a chemical or chemical class identified by a state agency, 27
183183 federal agency, international intergovernmental agency, accredited research university, or other 28
184184 scientific entity deemed authoritative by the department on the basis of credible scientific evidence 29
185185 as being one or more of the following: 30
186186 (i) A chemical or chemical class that is a carcinogen, mutagen, reproductive toxicant, 31
187187 immunotoxin, neurotoxicant, or endocrine disruptor; 32
188188 (ii) A chemical or chemical class that is persistent or bioaccumulative; 33
189189 (iii) A chemical or chemical class that may harm the normal development of a fetus or child 34
190190
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193193 or cause other developmental toxicity in humans or wildlife; 1
194194 (iv) A chemical or chemical class that may harm organs or cause other systemic toxicity; 2
195195 (v) A chemical or chemical class that may have adverse air quality impacts, adverse 3
196196 ecological impacts, adverse soil quality impacts, or adverse water quality impacts; or 4
197197 (vi) A chemical or chemical class that the department has determined has equivalent 5
198198 toxicity to the criteria listed in this definition. 6
199199 (26) "Unit" means each discrete component of a package or container, including material 7
200200 that is used for the containment, protection, handling, delivery, transport, distribution, and 8
201201 presentation of a product that is sold, offered for sale, imported, or distributed in the state, including 9
202202 through Internet transactions. 10
203203 (27) "Universal Product Code" or "UPC" means a standard for encoding a set of lines and 11
204204 spaces that can be scanned and interpreted into numbers for product identification purposes. 12
205205 "Universal product code" includes any industry-accepted barcode used for product identification 13
206206 purposes in a manner similar to a UPC, including, but not limited to, a European Article Number. 14
207207 23-99-3. Packaging reduction and recycling program. 15
208208 (a) This chapter establishes a packaging reduction and recycling program by which 16
209209 producers who sell, offer for sale, or distribute products contained, protected, delivered, presented, 17
210210 or distributed in packaging shall pay fees based on the quantity and type of packaging used in the 18
211211 state. The fees shall be used to fund the administration of this program. Producers shall also be 19
212212 required to make changes to the design of their products in order to meet packaging reduction and 20
213213 recycling requirements. 21
214214 (b) The department shall contract with a 501(c)(3) nonprofit, to act as the packaging 22
215215 reduction organization, which shall collect packaging reduction, generation, and recycling 23
216216 information and fee payments, as described in § 23-99-9, from participating producers. The 24
217217 payments collected from producers shall be deposited into the packaging reduction fund to 25
218218 reimburse local governments for the costs associated with reducing and managing packaging waste, 26
219219 reimburse the department for their administration of the program, and to support eligible projects 27
220220 that reduce packaging waste by investing in packaging reduction and elimination, reuse and refill 28
221221 systems and programs, recycling infrastructure, and comprehensive multi-media educational 29
222222 programs. 30
223223 (c) No later than eighteen (18) months after the effective date of this chapter, the 31
224224 department shall conduct a statewide packaging reduction, reuse, and recycling needs assessment 32
225225 as described in § 23-99-8 to determine the current state of packaging reuse, recycling, and disposal, 33
226226 and to identify barriers and opportunities to reduce the amount of packaging discarded and disposed 34
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230230 of, and to increase the reusability and recyclability of packaging. 1
231231 (d) The auditor general shall conduct an annual audit of the program, including, but not 2
232232 limited to, the amount of money received; the amount of money sent to local governments; the 3
233233 amount of money used to invest in reduction, recycling, and reuse programs and services by the 4
234234 packaging reduction organization and any state offices; the amount of discarded packaging 5
235235 generated, reduced, and recycled; any recommendations for improvement of the program. The audit 6
236236 shall be a public document. 7
237237 23-99-4. Producer responsibilities and exemptions of small producers. 8
238238 (a) One year after the selection of the packaging reduction organization as required by § 9
239239 23-99-5, a producer shall not sell, offer for sale, or distribute into the state a product contained, 10
240240 protected, delivered, presented, or distributed in packaging unless the producer is: 11
241241 (1) Registered with the packaging reduction organization; and 12
242242 (2) In full compliance with all requirements of this chapter. 13
243243 (b) A producer shall annually report to the packaging reduction organization: 14
244244 (1) The total amount, by unit, of each type of packaging material sold, offered for sale, or 15
245245 distributed for sale into the state by the producer in the prior calendar year; 16
246246 (2) All information necessary for producer and the packaging reduction organization to 17
247247 meet its obligations required pursuant to § 23-99-6. 18
248248 (c) A producer shall annually submit a written statement, signed by the chief executive 19
249249 officer, verifying the producer’s compliance with: 20
250250 (1) The toxic substance reduction requirements of § 23-99-13; 21
251251 (2) The packaging reduction requirements of § 23-99-11; and 22
252252 (3) The packaging recycling requirements of § 23-99-12. 23
253253 (d) A producer is exempt from the requirements and prohibitions of this chapter in a 24
254254 calendar year in which: 25
255255 (1) The producer realized less than one million dollars ($1,000,000) in total gross revenue 26
256256 during the prior calendar year; or 27
257257 (2) The producer sold, offered for sale, or distributed for sale products contained, protected, 28
258258 delivered, presented, or distributed in or using less than one ton of packaging material in total during 29
259259 the prior calendar year. 30
260260 (e) A producer claiming an exemption under this section shall provide the department with 31
261261 sufficient information to demonstrate that the claimant is eligible for an exemption. 32
262262 23-99-5. Selection of the packaging reduction organization. 33
263263 (a) Consistent with the requirements of this section, within one year after the promulgation 34
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267267 of rules as required by § 23-99-15, the department shall select and enter into a contract with a 1
268268 501(c)(3) nonprofit organization to act as the packaging reduction organization in order to operate 2
269269 the packaging reduction and recycling program for a period of ten (10) years. 3
270270 (b) Consistent with applicable competitive bidding requirements under state purchasing 4
271271 laws and following the initial adoption of rules by the department pursuant to § 23-99-15, the 5
272272 department shall issue a request for a proposal for the operation of the packaging reduction and 6
273273 recycling program. The proposals shall be required to cover the ten (10) year operation of the 7
274274 program by the successful bidder and shall be required to include, at a minimum, the following 8
275275 information: 9
276276 (1) A description of how the bidder will administer the packaging reduction and recycling 10
277277 program, including the mechanisms and processes for providing assistance to producers to comply 11
278278 with the reporting requirements of this chapter; 12
279279 (2) The mechanisms and processes the bidder will use to compile information from 13
280280 participating producers; 14
281281 (3) How the bidder intends to establish and manage the packaging reduction fund, 15
282282 including, but not limited to, public participation, the staffing the bidder intends to use for 16
283283 management of the fund, and the plan for providing technical support to interested persons 17
284284 regarding use of the funds; 18
285285 (4) A financial assurance plan that ensures all funds held in the packaging reduction fund 19
286286 are immediately and exclusively forfeited and transferred to or otherwise made immediately 20
287287 available to the department if the packaging reduction organization contract with the department is 21
288288 terminated by the department, or expires; 22
289289 (5) A proposed budget outlining the anticipated costs of operating the producer 23
290290 responsibility program, including identification of any start-up costs that will not be ongoing and a 24
291291 description of the method by which the bidder intends to determine and collect producer payments 25
292292 during the initial startup period; 26
293293 (6) A certification that the bidder will not share, except with the department, information 27
294294 provided to the bidder by a producer that is proprietary information and that is identified by the 28
295295 producer as proprietary information. The certification shall include a description of the methods by 29
296296 which the bidder intends to ensure the confidentiality of such information; and 30
297297 (7) Any other additional information required by the department. 31
298298 (c) If, at the close of the competitive bidding process set forth in this section, the department 32
299299 determines that no bidder has submitted, in accordance with this section, a proposal that meets the 33
300300 requirements of this section, the department shall run the program by itself or a designated state 34
301301
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304304 public body. 1
305305 23-99-6. Responsibilities of the packaging reduction organization. 2
306306 (a) The packaging reduction organization shall: 3
307307 (1) Register all producers; 4
308308 (2) Collect and compile data from producers as required by § 23-99-4; 5
309309 (3) Collect fees due from producers as required by § 23-99-9; 6
310310 (4) Reimburse the department and the auditor general for the costs associated with 7
311311 conducting the needs assessment required by § 23-99-8; 8
312312 (5) Distribute funds to reimburse local governments and private companies for the costs 9
313313 associated with the implementation of reduction and refill and reuse programs, collection, 10
314314 transportation, and recycling of packaging materials as required by § 23-99-10; 11
315315 (6) Make recommendations to the department regarding investments toward packaging 12
316316 reduction, reuse, and recycling as required by § 23-99-10; and 13
317317 (7) Offer technical support to participating producers, with an emphasis on support to small 14
318318 businesses, to assist them with compliance with the requirements of this chapter, including 15
319319 information about procuring affordable alternatives to non-compliant packaging and reducing 16
320320 packaging. 17
321321 (b) Annually, the packaging reduction organization shall submit a report to the department 18
322322 that, at a minimum, shall include the following information: 19
323323 (1) Contract information for the packaging reduction organization; 20
324324 (2) A list of all participating producers, brand(s), and products identified by the Universal 21
325325 Product Code (UPC) that the producer sells, offers for sale, or distributes into the state that are 22
326326 contained, protected, delivered, presented, or distributed in or using packaging; 23
327327 (3) The total amount, by both weight and number of units of each type of packaging 24
328328 material used to contain, protect, handle, deliver, transport, distribute, or present products sold, 25
329329 offered for sale, or distributed into the state by each individual producer during the prior calendar 26
330330 year; 27
331331 (4) The total amount, by both weight and number of units, of each type of packaging 28
332332 material used to contain, protect, handle, deliver, transport, distribute, or present products sold, 29
333333 offered for sale, or distributed into the state by all producers during the prior calendar year. 30
334334 (5) A complete accounting of all payments made to and by the packaging reduction 31
335335 organization during the prior calendar year; 32
336336 (6) A list of producers believed to be out of compliance with the requirements of this 33
337337 chapter, and the reason the packaging reduction organization believes the producer to be out of 34
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341341 compliance. Information on non-compliant companies shall be provided to the attorney general’s 1
342342 office in a timely fashion and for possible enforcement action by that office; 2
343343 (7) A description of the educational and outreach efforts made by the packaging reduction 3
344344 organization in the prior calendar year, and how those efforts were designed to reduce packaging 4
345345 waste, and increase reuse and recycling of packaging materials; 5
346346 (8) An assessment of whether the fee structure adopted by the department pursuant to § 23-6
347347 99-9 has been effective in incentivizing improvements to the design of packaging material, 7
348348 including actual reduction of packaging, increases in reusable and refillable packaging, recycling 8
349349 rates for packaging materials, and decreases in the amount of packaging; 9
350350 (9) A description of the reimbursements and expenditures made pursuant to § 23-99-10; 10
351351 and 11
352352 (10) Any additional information required by the department. 12
353353 (c) The packaging reduction organization shall conduct an annual review process to 13
354354 determine whether products and packaging materials are recyclable. This review shall be conducted 14
355355 in consultation with representatives of end markets, including recycled commodities brokers and 15
356356 manufacturers who purchase post-consumer material for use in manufacturing new products. For 16
357357 the purposes of calculating producer payments and municipal reimbursements in accordance with 17
358358 this chapter, this annual process shall include a transitional period between the date the 18
359359 determination is finalized and the date it goes into effect. 19
360360 (d) The packaging reduction organization shall conduct public outreach and provide 20
361361 consumers with educational and informational materials related to reducing the amount of 21
362362 packaging discarded, recycled, and disposed of in the state. The outreach and education shall, at a 22
363363 minimum, include: 23
364364 (1) A description of the environmental, social, economic, and environmental justice impact 24
365365 associated with improper disposal of packaging materials; 25
366366 (2) At least three (3) public hearings in geographically diverse parts of the state each year, 26
367367 to solicit public input on the implementation and effectiveness of this chapter and suggested 27
368368 improvements; 28
369369 (3) Information regarding the management of discarded packaging including reuse, 29
370370 recycling, composting, and disposal by landfilling and incineration; 30
371371 (4) The location and availability of curbside and drop-off collection opportunities for 31
372372 packaging waste, including deposit and take-back programs; 32
373373 (5) Description of the environmental, social, economic, and environmental justice impact 33
374374 associated with failure to reuse or recycle packaging materials; 34
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378378 (6) Information regarding municipal reimbursement for the costs associated with 1
379379 packaging reuse, recycling, and disposal; and 2
380380 (7) Any other information required by the department. 3
381381 (e) The public outreach and education conducted by the packaging reduction organization 4
382382 shall: 5
383383 (1) Utilize all available forms of media, including, but not limited to, television, radio, 6
384384 print, electronic, and web-based media to provide information directly to residents in the state, in 7
385385 multiple languages; 8
386386 (2) Be coordinated with the various local governments in the state to incorporate electronic, 9
387387 print, web-based and social media elements that individual local governments may elect to use, at 10
388388 their discretion, to provide education directly to their residents; 11
389389 (3) Be provided to producers for inclusion on their packaging’s label to inform consumers 12
390390 about the methods to responsibly reuse, recycle, or dispose of the packaging; and 13
391391 (4) Be coordinated with other similar public outreach and education programs in the state 14
392392 as necessary to avoid consumer confusion and facilitate the consolidation of available resources. 15
393393 (f) In addition to engaging in the public education and outreach required by this section, 16
394394 the packaging reduction organization shall be authorized to provide producers and retailers with 17
395395 educational materials related to the responsible reduction, reuse, recycling, or disposal of discarded 18
396396 packaging. The educational and informational materials provided to the retailer under this 19
397397 subsection may include, but need not be limited to, printed materials, signage, templates of 20
398398 materials that can be reproduced by retailers and provided thereby to consumers at the time of a 21
399399 product’s purchase, and advertising materials that promote and encourage consumers to properly 22
400400 reuse, recycle, or dispose of packaging materials. 23
401401 (g) The packaging reduction organization shall not spend funds on lobbying federal, state, 24
402402 or local governments or the making of campaign contributions to any candidates running for office. 25
403403 23-99-7. Responsibilities of the department. 26
404404 (a) Beginning one year after the selection of the packaging reduction organization pursuant 27
405405 to § 23-99-5, and annually thereafter, the department shall work with the packaging reduction 28
406406 organization to: 29
407407 (1) Calculate the amount of packaging that was generated during the prior calendar year; 30
408408 (2) Calculate the recycling rate for all packaging during the prior calendar year; 31
409409 (3) Calculate the recycling rate for each packaging material type during the prior calendar 32
410410 year; and 33
411411 (4) Develop a list of producers believed to be out of compliance with the requirements of 34
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415415 this chapter. 1
416416 (b) In the event that the department determines that the packaging reduction organization 2
417417 no longer meets the requirements of this chapter or fails to implement and administer the 3
418418 requirements of this chapter in a manner that effectuates the purposes of this chapter, the department 4
419419 shall revoke its approval of the packaging reduction organization and shall select a new packaging 5
420420 reduction organization to replace it, or, in the alternative, may elect to operate the program itself. 6
421421 (c) The department or attorney general shall take enforcement action against all non-7
422422 compliant producers in accordance with § 23-99-16. 8
423423 23-99-8. Statewide reduction, reuse, and recycling needs assessment. 9
424424 (a) Consistent with applicable competitive bidding requirements, within one year after 10
425425 promulgating the rules and regulations required to implement this chapter, and every five (5) years 11
426426 thereafter, the department shall issue a request for proposals to conduct a statewide packaging 12
427427 reduction, reuse, and recycling needs assessment, hereinafter "needs assessment", to identify 13
428428 barriers and opportunities for reducing, reusing, and recycling packaging materials. The proposals 14
429429 shall include, at a minimum, a description of how the bidder will conduct the needs assessment to 15
430430 evaluate the following: 16
431431 (1) The current recycling rate for each type of packaging material; 17
432432 (2) The amount, by weight and material type, of packaging recycled at each recycling 18
433433 facility that accepts discarded packaging generated in the state; 19
434434 (3) The processing capacity, market conditions, and opportunities in the state and 20
435435 regionally for recyclable materials; 21
436436 (4) The net cost of end-of-life management of discarded packaging in the state, including 22
437437 the cost associated with the collection, transportation, sortation, recycling, landfilling, or 23
438438 incineration of discarded packaging; 24
439439 (5) The availability of opportunities in the recycling, and reuse system for businesses 25
440440 owned by women and people of color; 26
441441 (6) Current barriers affecting recycling access and availability in the state; 27
442442 (7) Current barriers to the marketability of recyclable materials generated in the state; 28
443443 (8) Opportunities for the creation of packaging reuse and refill programs in the state; 29
444444 (9) Opportunities for the improvement of packaging recycling in the state, including the 30
445445 development of end markets for recycled packaging materials; 31
446446 (10) Current barriers affecting the creation and implementation of packaging reuse and 32
447447 refill programs; and 33
448448 (11) Consumer education needs in the state with respect to packaging waste reduction, 34
449449
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451451 LC000974 - Page 13 of 21
452452 recycling, reducing contamination in recycling, and reuse and refill systems for packaging. 1
453453 (b) After reviewing proposals, the department shall select an applicant to perform the needs 2
454454 assessment. If, at the close of the competitive bidding process, the department determines that no 3
455455 applicant can successfully perform the needs assessment, the department shall perform the needs 4
456456 assessment itself, or designate another state office to do it. 5
457457 (c) The cost incurred by the department or designee associated with conducting the needs 6
458458 assessment shall be paid for by funds from the packaging reduction and recycling fund. 7
459459 (d) The department shall report the results of the study to the public, the media, state 8
460460 legislature, the governor, the auditor general and the attorney general, who are all directed to 9
461461 coordinate enforcement of this law. 10
462462 23-99-9. Assessment of fees. 11
463463 (a) The department shall promulgate regulations setting forth the manner in which producer 12
464464 payments on packaging materials shall be calculated and assessed. 13
465465 (b) The payments shall be calculated based on the total amount, by weight, of each type of 14
466466 packaging material used to contain, protect, deliver, present, or distribute a product sold, offered 15
467467 for sale, or distributed into the state by the producer in the prior calendar year. 16
468468 (c) The list of packaging material types for which there is a specific fee shall include, at a 17
469469 minimum, the following material types: 18
470470 (1) Polyethylene terephthalate (PET or PETE); 19
471471 (2) High density polyethylene (HDPE); 20
472472 (3) Polyvinyl Chloride (PVC); 21
473473 (4) Low density polyethylene (LDPE); 22
474474 (5) Polypropylene (PP); 23
475475 (6) Polystyrene (PS) including expanded polystyrene; 24
476476 (7) Other plastic resin types not specifically identified here; 25
477477 (8) Bio-plastics; 26
478478 (9) Paper; 27
479479 (10) Cardboard; 28
480480 (11) Wood; 29
481481 (12) Glass; 30
482482 (13) Bi-metal, steel and other ferrous metals; 31
483483 (14) Aluminum and other non-ferrous metals; 32
484484 (15) Mixed materials including laminates and packaging containing more than one of the 33
485485 above materials; and 34
486486
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489489 (16) Any other material used for consumer packaging. 1
490490 (d) The fees shall be designed to cover, at a minimum, the total cost associated with: 2
491491 (1) The collection transportation, and management of each type of packaging material used 3
492492 to contain, protect, deliver, present, or distribute products sold, offered for sale, or distributed into 4
493493 the state by all producers; 5
494494 (2) The department’s and other state agencies’ administration of this chapter; 6
495495 (3) The packaging reduction organization’s administration of the packaging reduction and 7
496496 recycling program; 8
497497 (4) The cost associated with the development of the statewide packaging reduction, reuse, 9
498498 and recycling needs assessment pursuant to § 23-99-8; and 10
499499 (5) Any other factors determined by the department. 11
500500 (e) The fees adopted under this section shall delineate criteria to be used to initially 12
501501 establish and subsequently adjust producer payments in a manner that incentivizes: 13
502502 (1) A reduction in the total packaging as measured by weight used by producers, and 14
503503 discarded by consumers, businesses, institutions, and other users. Weight reductions shall not be 15
504504 achieved by substituting plastic for other materials types; 16
505505 (2) An increase in the proportion of a producer’s total packaging that is managed within a 17
506506 reuse and refill system; 18
507507 (3) An increase in the proportion of a producer’s total packaging that is deemed recyclable 19
508508 as determined by an annual review process as described in § 23-99-6; 20
509509 (4) An increase in the proportion of a producer’s total packaging that is ultimately recycled; 21
510510 (5) A reduction in toxic components in packaging materials; and 22
511511 (6) A reduction in litter from packaging materials. 23
512512 (f) There shall be no fee assessed on packaging that is designed for reuse and refill and 24
513513 contained within a reuse or refill system. 25
514514 (g) The department shall update and revise the fees every three (3) years. 26
515515 23-99-10. Packaging reduction fund. 27
516516 (a) There is hereby established, a separate, non-lapsing, interest-bearing fund to be known 28
517517 as the packaging reduction fund, which will be managed by the packaging reduction organization 29
518518 with oversight from the department. 30
519519 (b) The packaging reduction organization shall deposit into the fund all payments received 31
520520 from producers in accordance with § 23-99-9, and all penalties collected pursuant to § 23-99-16. 32
521521 (c) Beginning one year after the first payment of fees by producers pursuant to § 23-99-9, 33
522522 and annually thereafter, the packaging reduction organization shall: 34
523523
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525525 LC000974 - Page 15 of 21
526526 (1) Retain a portion of the fees deposited into the packaging reduction fund to cover the 1
527527 costs associated with its administration of the packaging reduction and recycling program; and 2
528528 (2) Reimburse the department, the office of the inspector general, the office of attorney 3
529529 general, the auditor general and all other state entities for the costs associated with administering 4
530530 and enforcing the requirements of this chapter and its implementation regulations. This 5
531531 reimbursement shall include costs associated with performing, revising, and updating the statewide 6
532532 packaging reduction, reuse, and recycling needs assessment required by § 23-99-8. This 7
533533 reimbursement shall also cover any costs incurred by the department in adopting and revising rules 8
534534 and regulations as well as administering and enforcing the requirements of this chapter. 9
535535 (d) Beginning one year after the first payments of fees by producers pursuant to § 23-99-10
536536 9, and annually thereafter, the packaging reduction organization shall distribute money from the 11
537537 packaging reduction fund to reimburse local governments for the costs incurred for the 12
538538 management, reduction, and recycling of packaging waste, as long as the local government 13
539539 provides recycling services to all residents, businesses, schools, and institutions in their jurisdiction. 14
540540 Local governments that contract with private haulers and recyclers to handle the management, 15
541541 reduction, and recycling of packaging waste are eligible for reimbursement, as long as the private 16
542542 hauler or recycler provides recycling services to all residents, businesses, schools, and institutions 17
543543 within the local government’s jurisdiction. Nothing in this subsection shall be interpreted as 18
544544 allowing for the reimbursement of costs associated with the disposal of packaging. 19
545545 (e) Beginning one year after the first payment of fees by producers pursuant to § 23-99-9, 20
546546 and annually thereafter, the packaging reduction organization shall make all remaining funds 21
547547 following the reimbursement and distributions required by subsections (c) and (d) of this section, 22
548548 available for projects and programs that will help achieve the packaging reduction requirements of 23
549549 § 23-99-11, and the packaging recycling requirements of § 23-99-12. Annually, the money 24
550550 allocated for projects and programs under this subsection shall be at least fifty percent (50%) of the 25
551551 money provided to local governments pursuant to subsection (d) of this section. 26
552552 (1) Funds may be used for investment in collection systems, transportation systems, reuse 27
553553 systems, washing systems, redistribution systems, technology for tracking and data collection, 28
554554 capital expenditures on new and emerging technology focused on reusable and refillable packaging, 29
555555 as well as equipment, and facilities, and other projects determined by the department to facilitate 30
556556 the goals and objectives of this chapter. 31
557557 (2) Funds may also be used for investment in public outreach and education in ways that 32
558558 increase access and participation in packaging reduction, reuse, refill, and recycling systems 33
559559 throughout the state. 34
560560
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562562 LC000974 - Page 16 of 21
563563 (3) The packaging reduction organization shall prioritize investments for projects and 1
564564 programs that will directly benefit environmental justice communities, including, but not limited 2
565565 to, communities that are home to a landfill, incinerator, transfer station, or waste-to-energy facility. 3
566566 (4) Any investments made pursuant to this subsection shall be approved by the department. 4
567567 The department shall approve or deny proposed investments within ninety (90) days of receipt of 5
568568 a proposal from the packaging reduction organization. The investments may be approved, at the 6
569569 discretion of the department, as long as the proposed investment shall, at a minimum: 7
570570 (i) Increase the transition of packaging from non-reusable to reduced, reusable or refillable 8
571571 packaging; 9
572572 (ii) Increase access to reuse and refill infrastructure in the state; 10
573573 (iii) Increase the capacity of reuse and refill infrastructure in the state; 11
574574 (iv) Provide reuse and refill instructions that are, to the extent practicable, consistent 12
575575 statewide, easy to understand, translated into various commonly used languages, and easily 13
576576 accessible; or 14
577577 (v) Provide for outreach and education that are coordinated across programs or regions to 15
578578 avoid confusion for residents and developed in consultation with local government and the public. 16
579579 23-99-11. Packaging reduction requirements. 17
580580 (a) Each individual producer is required to meet the packaging reduction requirements 18
581581 contained in this section as follows: 19
582582 (1) Beginning two (2) years after a producer first registers with the packaging reduction 20
583583 organization, a producer shall reduce the amount of packaging used to contain, protect, deliver, 21
584584 present, or distribute the products they sell, offer for sale, or distribute for sale into the state, by ten 22
585585 percent (10%) by weight. 23
586586 (2) Beginning four (4) years after a producer first registers with the packaging reduction 24
587587 organization, a producer shall reduce the amount of packaging used to contain, protect, deliver, 25
588588 present, or distribute the products they sell, offer for sale, or distribute for sale into the state, by 26
589589 twenty percent (20%) by weight. 27
590590 (3) Beginning six (6) years after a producer first registers with the packaging reduction 28
591591 organization, a producer shall reduce the amount of packaging used to contain, protect, deliver, 29
592592 present, or distribute the products they sell, offer for sale, or distribute for sale into the state, by 30
593593 thirty percent (30%) by weight. 31
594594 (4) Beginning eight (8) years after a producer first registers with the packaging reduction 32
595595 organization, a producer shall reduce the amount of packaging used to contain, protect, deliver, 33
596596 present, or distribute the products they sell, offer for sale, or distribute for sale into the state, by 34
597597
598598
599599 LC000974 - Page 17 of 21
600600 forty percent (40%) by weight. 1
601601 (5) Beginning ten (10) years after a producer first registers with the packaging reduction 2
602602 organization, a producer shall reduce the amount of packaging used to contain, protect, deliver, 3
603603 present, or distribute the products they sell, offer for sale, or distribute for sale into the state, by 4
604604 fifty percent (50%) by weight. 5
605605 (b) The reductions required by this section shall be measured against the total amount of 6
606606 packaging the producer used to contain, protect, deliver, present, or distribute the products they 7
607607 sold, offered for sale, or distributed for sale, during the first year they registered with the packaging 8
608608 reduction organization. 9
609609 (c) These reductions required by this section may be achieved by using the following 10
610610 strategies: 11
611611 (1) Elimination of packaging components; 12
612612 (2) Reduction of packaging components; 13
613613 (3) Using reuse and refill systems; and 14
614614 (4) Packaging rightsizing, light weighting, and optimization. 15
615615 (d) The reductions required by this subsection shall not be achieved by substituting plastic 16
616616 for other materials. 17
617617 (e) In the case of a producer that enters the market with fifty percent (50%) or more by 18
618618 weight of its packaging being reusable and contained within a reuse and refill system, that producer 19
619619 may apply to the department for a waiver from the packaging reduction requirements. 20
620620 23-99-12. Packaging recycling requirements. 21
621621 (a) Each individual producer is required to meet the packaging recycling requirements 22
622622 contained herein. 23
623623 (b) A producer is required to ensure that the packaging used to contain, protect, deliver, 24
624624 present, or distribute the products they sell, offer for sale, or distribute into the state, is made of a 25
625625 material that meets the following recycling rates: 26
626626 (1) Not less than thirty percent (30%) within five (5) years after the effective date of this 27
627627 chapter; 28
628628 (2) Not less than fifty percent (50%) within eight (8) years after the effective date of this 29
629629 chapter; and 30
630630 (3) Not less than seventy percent (70%) within twelve (12) years after the effective date of 31
631631 this chapter. 32
632632 (c) The requirements of subsection (b) of this section shall not apply to reusable or refillable 33
633633 packaging or containers. 34
634634
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637637 23-99-13. Toxic reduction requirements. 1
638638 (a) Beginning three (3) years after the promulgation of rules and regulations pursuant to § 2
639639 23-99-15, and every three (3) years thereafter, the department shall designate at least ten (10) toxic 3
640640 substances or families of toxic substances that may no longer be sold, offered for sale, distributed 4
641641 for sale, or distributed for use in packaging in this state unless it determines there are not ten (10) 5
642642 chemicals that meet the definition of toxic substances. If the department determines there are not 6
643643 ten (10) toxic substances that meet such a definition, it shall publish a detailed statement of its 7
644644 findings and conclusions supporting such determination. 8
645645 (b) Within one hundred eighty (180) days of designating a toxic substance, the department 9
646646 shall adopt regulations to prohibit the newly designated toxic substance in packaging, with an 10
647647 effective date no later than two (2) years after such designation. 11
648648 (c) Any producer that violates this section shall be subject to a fine for each violation not 12
649649 to exceed fifty thousand dollars ($50,000) per violation. For the purposes of this section, each 13
650650 product line that is sold, offered for sale, or distributed to consumers, via retail commerce, in the 14
651651 state, including through an Internet transaction shall be considered a violation. 15
652652 23-99-14. Establishment of the office of inspector general. 16
653653 (a) The director of the department shall establish and appoint a standalone independent 17
654654 inspector general within the department. The inspector general shall administratively report to the 18
655655 director of the department. The inspector general shall evaluate the programs created by this chapter 19
656656 on an annual basis to ensure it is properly functioning, and the producers are following the 20
657657 requirements of this chapter. 21
658658 (b) The director, the inspector general or designees, shall have the authority to investigate 22
659659 the compliance of producers with all provisions of this chapter and to bring enforcement violations 23
660660 against non-compliant producers. 24
661661 23-99-15. Rulemaking. 25
662662 (a) The department may promulgate rules and regulations as necessary to implement, 26
663663 administer, and enforce this chapter. All initial rules and regulations developed to implement the 27
664664 provisions of this chapter shall be promulgated no later than one year after the effective date of this 28
665665 chapter. 29
666666 (b) The department shall solicit input from the public of any draft rules or regulations to 30
667667 implement this chapter, solicit public comment on draft rules or regulations for a period of at least 31
668668 ninety (90) days, and hold a public hearing on the draft rules or regulations. 32
669669 (c) The rules and regulations adopted by the department pursuant to this chapter shall 33
670670 include, at a minimum: 34
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673673 LC000974 - Page 19 of 21
674674 (1) A process for contracting with the packaging reduction organization pursuant to the 1
675675 requirements of § 23-99-5; 2
676676 (2) A process for annually determining a schedule of producer fees and payment collections 3
677677 pursuant to the requirements of § 23-99-9; 4
678678 (3) A process for collecting all necessary information to ensure producer compliance with 5
679679 the requirements of this chapter; 6
680680 (4) A process for evaluating whether a producer is in compliance with the packaging 7
681681 reduction requirements of § 23-99-11; 8
682682 (5) A process for evaluating whether a producer is in compliance with the packaging 9
683683 recycling requirements of § 23-99-12; 10
684684 (6) A process for evaluating whether a producer is in compliance with the toxic packaging 11
685685 reduction requirements of § 23-99-13; 12
686686 (7) A process for determining on an annual basis the types of packaging material that are 13
687687 recyclable; 14
688688 (8) A process for the assessment of the packaging reduction organization and the packaging 15
689689 reduction and recycling program; 16
690690 (9) Requirements for the packaging reduction organization to conduct a representative 17
691691 audit of recyclable material processed and sold by facilities that process recyclable material 18
692692 generated in the state and of municipal solid waste disposed of in the state; 19
693693 (10) A process for establishing and enforcing penalties for all violations of the requirements 20
694694 of this chapter; 21
695695 (11) A process for determining new toxic substances in packaging pursuant to § 23-99-13; 22
696696 (12) A process for how the department will oversee and monitor the packaging reduction 23
697697 organization’s management of the packaging reduction fund, including a process for submitting 24
698698 and reviewing proposals from the packaging reduction organization regarding investments in 25
699699 projects and programs that will help achieve the packaging reduction requirements of § 23-99-11, 26
700700 and the packaging recycling requirements of § 23-99-12; and 27
701701 (13) A process for determining whether information is proprietary information and 28
702702 therefore, shall be handled as confidential information. 29
703703 23-99-16. Penalties and enforcement. 30
704704 (a) Failure to comply with the requirements of this chapter by either the packaging 31
705705 reduction organization or an individual producer shall subject the violators to penalties. The 32
706706 department, inspector general, and the office of the attorney general, may conduct investigations, 33
707707 including inspecting operations, facilities, and records of producers and the packaging reduction 34
708708
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710710 LC000974 - Page 20 of 21
711711 organization, and by performing audits of producers and the packaging reduction organization, to 1
712712 determine whether entities are complying with the requirements of this chapter. 2
713713 (b) The department, the inspector general, or the office of the attorney general, shall notify 3
714714 the packaging reduction organization and producers of any conduct or practice that does not comply 4
715715 with the requirements of this chapter and of any inconsistencies identified in an audit. 5
716716 (c) The department, the inspector general, or the office of the attorney general, may issue 6
717717 a notice of violation to, and impose an administrative civil penalty not to exceed one hundred 7
718718 thousand dollars ($100,000) per day per violation on, any entity not in compliance with this chapter 8
719719 or any of the regulations the department adopts to implement this chapter. For the purposes of this 9
720720 section, each product line that is sold, offered for sale, or distributed to consumers, via retail 10
721721 commerce, in the state, including through an Internet transaction, shall be considered a violation. 11
722722 (d) Any funds collected under this section shall be deposited into the packaging reduction 12
723723 fund. 13
724724 23-99-17. Enforcement by action in superior court. 14
725725 (a) The provisions of this chapter may be enforced by means of an action in the superior 15
726726 court seeking either enforcement of civil penalties, injunctive relief, a declaratory judgment, a writ 16
727727 of mandamus, or any combination thereof. No such action may be commenced without the plaintiff 17
728728 providing written notice of the violations of this chapter to defendants at least sixty (60) days prior 18
729729 to filing a legal action in superior court. 19
730730 (b) All persons shall have standing to commence an enforcement actions for equitable 20
731731 relief. 21
732732 (c) Reasonable attorneys’ fees shall be recoverable by all substantially prevailing plaintiffs 22
733733 who seek equitable relief under this section. 23
734734 SECTION 2. This act shall take effect upon passage. 24
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740740 LC000974 - Page 21 of 21
741741 EXPLANATION
742742 BY THE LEGISLATIVE COUNCIL
743743 OF
744744 A N A C T
745745 RELATING TO HEALTH AND SAFETY -- EXTENDED PRODUCER RE SPONSIBILITY
746746 FOR PACKAGING
747747 ***
748748 This act would establish the packaging reduction and recycling program. The department 1
749749 of environmental management (DEM) would be responsible for selection of an organization to 2
750750 administer the program. The program over a multi-year basis would require reduction in the amount 3
751751 of packaging material used for products. Additionally, this act would create a new position of 4
752752 inspector general within DEM. Administrative penalties not to exceed one hundred thousand 5
753753 dollars ($100,000) per day could be imposed for violations. A civil action for equitable relief for 6
754754 any violation could be pursued by any person. Reasonable attorney fees would be recoverable for 7
755755 a substantially prevailing party seeking equitable relief for a violation of the provisions of this act. 8
756756 This act would take effect upon passage. 9
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760760