SENATE BILL 269
By Campbell
HOUSE BILL 600
By Freeman
HB0600
001943
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AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 29, Part 2 and Title 68, Chapter 211,
relative to solid waste.
WHEREAS, packaging waste makes up nearly one-third of solid municipal waste with
just twelve percent recycled, sending nine hundred thousand tons of recyclable packaging to
landfills; and
WHEREAS, businesses in this State want and need the valuable materials that would
otherwise be lost to landfills, litter, and incineration; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 68, Chapter 211, is amended by adding
the following as a new part:
68-211-1201.
(a) This part is known and may be cited as the "Tennessee Waste to Jobs Act."
(b) It is the intent of the general assembly that this part affects the development
and implementation of a comprehensive approach to addressing packaging waste in this
state, to include:
(1) Creating jobs and providing a sustainable funding mechanism for the
operation of local recycling systems, enabling investment in recycling
infrastructure;
(2) Diverting recyclable packaging waste from rapidly filling landfills in
this state;
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(3) Recovering valuable materials that would otherwise be lost to
landfills, litter, and incineration, while developing markets for these materials and
supporting businesses building a circular economy in this state; and
(4) Engaging producers of packaging in the innovative reduction and
reuse of packaging materials.
68-211-1202.
As used in this part:
(1) "Advisory board" means the producer responsibility program advisory
board, established under § 68-211-1203;
(2) "Commissioner" means the commissioner of environment and
conservation;
(3) "Compostable material" means a covered material that:
(A) Meets, and is labeled to reflect that it meets, the American
Society for Testing and Materials (ASTM) standard in effect on July 1,
2025, and any successor standard, as the D6400 specification for
labeling of plastics designed to be aerobically composted in municipal or
industrial facilities;
(B) Meets, and is labeled to reflect that it meets, the ASTM
standard in effect on July 1, 2025, and any successor standard, as the
D6868 specification for labeling of end items that incorporate plastics and
polymers as coatings or additives with paper and other substrates
designed to be aerobically composted in municipal or industrial facilities;
(C) Is composed of only wood without any coatings or additives;
(D) Is composed of only paper without any coatings or additives;
and
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(E) Is included on the minimum compostable materials list
maintained under § 68-211-1204(a)(8);
(4) "Covered entity" means a person or location that receives covered
services for covered materials in accordance with the requirements of this part,
including:
(A) A single-family residence;
(B) A multifamily residence;
(C) A school or other location where education or childcare is
provided;
(D) A nonprofit corporation with annual revenue of less than
thirty-five million dollars ($35,000,000); and
(E) A state agency, political subdivision, public area, or other
public entity or government unit;
(5) "Covered materials":
(A) Means packaging materials, except as provided in subdivision
(5)(B); and
(B) Does not include:
(i) Packaging materials intended to be used for the long-
term storage or protection of a durable product and that are
intended to transport, protect, or store the product for at least five
(5) years;
(ii) Packaging materials used in commercial, industrial, or
manufacturing processes;
(iii) Subject to § 68-211-1213(a), packaging materials that
are collected prior to receipt of the product by the consumer do
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not undergo separation from other materials at a commingled
recycling processing facility, and are reused or recycled at a
responsible end market;
(iv) Beverage containers subject to a future returnable
container deposit not established by the producer responsibility
organization;
(v) Packaging material used to contain a product that is
regulated as a drug or medical device by the federal food and
drug administration under the Federal Food, Drug, and Cosmetic
Act, as amended (21 U.S.C. § 301 et seq.), or associated
components and consumable medical equipment;
(vi) Packaging material used to contain a product that is
regulated under the Virus-Serum-Toxin Act, as amended (21
U.S.C. § 151 et seq.);
(vii) Packaging material used to contain a product that is
required to be sold in packaging material that meets the
requirements of the Poison Prevention Packaging Act, as
amended (15 U.S.C. § 1471 et seq.);
(viii) Packaging material used to contain a product that is
regulated as infant formula, as defined in 21 U.S.C. § 321; as a
medical food, as defined in 21 U.S.C. § 360ee(b); or as fortified
nutritional supplements used for individuals who require
supplemental or sole source nutrition to meet nutritional needs
due to special dietary needs directly related to cancer, chronic
kidney disease, diabetes, malnutrition, or failure to thrive, as those
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terms are defined by the world health organization's International
Classification of Diseases, Tenth Revision (ICD-10), as amended
or revised, or other medical conditions as determined by the
department, after consultation with the advisory board, by rule;
and
(ix) Any other material that the department, after
consultation with the advisory board, determines by rule to not be
a covered material;
(6) "Covered services" means the services provided for the recovery,
recycling, reuse, or composting of covered materials by local governments and
other providers, including the collection, transportation, and processing of
covered materials from the consumer to the end market, curbside services, and
drop-off centers;
(7) "De minimis producer" means a person that in their most recent fiscal
year:
(A) Introduced less than one (1) ton of covered material into this
state; or
(B) Earned global gross revenues of less than two million dollars
($2,000,000);
(8) "Department" means the department of environment and
conservation;
(9) "Packaging materials":
(A) Means, regardless of recyclability, a part of a package or
container, including material that is used for the containment, protection,
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handling, delivery, and presentation of a product that is sold, offered for
sale, imported, or distributed in this state; and
(B) Includes:
(i) Primary, secondary, and tertiary packaging intended for
the consumer market; and
(ii) Service packaging designed and intended to be filled
at the point of sale, including carry-out bags, bulk goods bags, and
take-out and home delivery food service packaging;
(10) "Producer":
(A) Except as provided in subdivision (10)(B), means the
following person responsible for compliance with requirements under this
part for a covered material:
(i) For items sold in or with packaging at a physical retail
location in this state:
(a) If the item is sold in or with packaging under the
brand of the item manufacturer or is sold in packaging that
lacks identification of a brand, then the producer is the
person that manufactures the item;
(b) If there is no person to which subdivision
(10)(A)(i)(a) applies, then the producer is the person that is
licensed to manufacture and sell or offer for sale to
consumers in this state an item with packaging under the
brand or trademark of another manufacturer or person;
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(c) If there is no person to which subdivisions
(10)(A)(i)(a) or (b) apply, then the producer is the brand
owner of the item;
(d) If there is no person to which subdivisions
(10)(A)(i)(a)-(c) apply within the United States, then the
producer is the person who is the importer of record for the
item into the United States for use in a commercial
enterprise that sells, offers for sale, or distributes the item
in this state; and
(e) If there is no person to which subdivisions
(10)(A)(i)(a)-(d) apply, then the producer is the person that
first distributes the item in or into this state;
(ii) For items sold or distributed in packaging in or into this
state via e-commerce, remote sale, or distribution:
(a) For packaging used to directly protect or
contain the item, the producer of the packaging is the
same as if the items sold in or with packaging at a physical
retail location in this state under subdivision (10)(A)(i); and
(b) For packaging used to ship the item to a
consumer, the producer of the packaging is the person that
packages the item to be shipped to the consumer; and
(iii) For packaging that is a covered material and for which
a producer cannot be identified under subdivision (10)(A)(i) or
subdivision (10)(A)(ii), the producer of the packaging is the person
that first distributes the item in or into this state;
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(B) Does not include:
(i) A state, a federal or state agency, a political subdivision
of a state, or other governmental unit;
(ii) A registered 501(c)(3) charitable organization or
501(c)(4) social welfare organization;
(iii) A de minimis producer;
(iv) A mill that uses any virgin wood fiber in the products it
produces;
(v) A paper mill that produces container board derived
from one hundred percent (100%) postconsumer recycled content
and non-post-consumer recycled content; or
(vi) A person who would otherwise be the producer of a
covered material sold, offered for sale, or distributed in or into this
state under subdivision (10)(A), if:
(a) Another person contracts with the person who
would otherwise be a producer to assume responsibility for
the producer's compliance with requirements of this part,
that person has joined a registered PRO as the
responsible producer, and the person who would otherwise
be a producer provides written certification of the contract
to the PRO; or
(b) The person who would otherwise be a producer
is a business operated wholly or in part as a franchise, in
which case the franchisor is the producer if that franchisor
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has franchisees that have a commercial presence within
the state;
(11) "Producer responsibility organization" or "PRO" means a nonprofit
organization that is created by a group of producers to implement a producer
responsibility plan;
(12) "Readily recyclable material" means a covered material that is
included as a recyclable material on the minimum recyclable materials list
maintained under § 68-211-1204(a)(8);
(13) "Recyclable" means a covered material that can technically and
safely be recycled;
(14) "Recycling":
(A) Means the process of collecting and preparing recyclable
materials and reusing the materials in their original form or using the
materials in manufacturing processes that do not cause the destruction of
recyclable materials in a manner that precludes further use; and
(B) Does not include:
(i) Use of covered materials for energy recovery or energy
generation by means of combustion;
(ii) Use of covered materials as, or in production of, a fuel
or fuel component; or
(iii) Disposal of discarded covered materials in a landfill,
including use as alternative daily cover;
(15) "Refill" means the continued use of a covered material by a
consumer through a system that is:
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(A) Intentionally designed and marketed for repeated filling of a
covered material to reduce demand for new production of the covered
material;
(B) Supported by adequate logistics and infrastructure to provide
convenient access for consumers; and
(C) Compliant with all applicable federal, state, and local statutes,
rules, ordinances, and other laws governing health and safety;
(16) "Reusable" means capable of reuse;
(17) "Reuse" means the return of a covered material to the marketplace
and the continued use of the covered material by a producer or service provider
when the covered material is:
(A) Intentionally designed and marketed to be used multiple times
for its original intended purpose without a change in form;
(B) Designed for durability and maintenance to extend its useful
life and reduce demand for new production of the covered material;
(C) Supported by adequate logistics and infrastructure at a retail
location, by a service provider, or on behalf of or by a producer, that
provides convenient access for consumers; and
(D) Compliant with all applicable federal, state, and local statutes,
rules, ordinances, and other laws governing health and safety; and
(18) "Service provider" means a person who provides covered services.
68-211-1203.
(a) The commissioner shall appoint a producer responsibility program advisory
board.
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(b) The advisory board is administratively attached to the department; provided,
that the department may select an impartial, third-party facilitator to convene and provide
administrative support to the advisory board.
(c) The commissioner shall not appoint registered lobbyists to the advisory
board.
(d) The membership of the advisory board must represent all geographic regions
of this state, including urban and rural counties and municipalities. The advisory board
consists of the following twenty (20) members:
(1) Three (3) voting members representing local governments in this
state;
(2) One (1) voting member representing materials recovery facilities;
(3) One (1) voting member representing covered service providers;
(4) One (1) voting member representing environmental nonprofit
organizations;
(5) One (1) voting member representing community-based nonprofit
organizations working in the area of solid waste;
(6) One (1) voting member representing a trade association or chamber
of commerce, or other business advocacy organization representing businesses
that are headquartered in this state;
(7) One (1) voting member representing glass packaging material
suppliers that is not a producer;
(8) One (1) voting member representing plastics packaging material
suppliers that is not a producer;
(9) One (1) voting member representing fiber packaging material
suppliers that is not a producer;
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(10) One (1) voting member representing metals packaging material
suppliers that is not a producer;
(11) One (1) voting member who has experience representing
underserved communities;
(12) One (1) voting member representing a solid waste landfill or transfer
station operating an onsite, public-facing recycling collection program;
(13) One (1) voting member representing durable goods manufacturing
that is not a producer;
(14) One (1) voting member representing retail and food services that is
not a producer;
(15) One (1) voting member representing an entity that develops or offers
for sale covered materials that are designed for reuse and maintained through a
reuse system or infrastructure or a statewide or national trade association that
represents such entities;
(16) One (1) voting member representing an entity that develops or offers
for sale covered materials that are designed for refill and maintained through a
refill system or infrastructure or a statewide or national trade association that
represents such entities;
(17) The commissioner, or the commissioner's designee, who serves as
a nonvoting member; and
(18) One (1) nonvoting member representing a PRO.
(e) The commissioner shall appoint the initial advisory board members by July 1,
2026. In making appointments to the advisory board, the commissioner shall strive to
ensure that the makeup of the advisory board reflects and represents the demographic
diversity of persons in this state.
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(f) The terms for appointed members of the advisory board are four (4) years.
(g) In making the initial appointments, the members appointed pursuant to
subdivisions (d)(2)-(9) and (15) are appointed for four-year terms, and the members
appointed pursuant to subdivisions (d)(1), (10)–(14), (16), and (18) are appointed for
two-year terms. Thereafter, all appointments are for the full four-year term. In the event
of a vacancy, the commissioner shall fill the vacancy for the unexpired term.
(h) After all initial appointments to the advisory board are made, but no later than
July 15, 2026, the commissioner, or the impartial third-party facilitator selected under
subsection (b), shall call the first meeting of the advisory board. At the first meeting, and
at the first meeting of each year ending in an even number thereafter, the advisory board
shall elect from among its appointed members a chair, vice chair, and any other officers
deemed necessary.
(i) After the first meeting of the advisory board, the advisory board shall meet at
the call of the chair and not less than two (2) times per year.
(j) Meetings of the advisory board must comply with the open meeting
requirements of title 8, chapter 44.
(k) All records of the advisory board are public records for purposes of the public
records law, compiled in title 10, chapter 7.
(l) All reimbursement for travel expenses must be in accordance with the
comprehensive travel regulations as promulgated by the department of finance and
administration and approved by the attorney general and reporter. All members of the
advisory board serve without compensation but are eligible for reimbursement of
necessary traveling and other appropriate expenses while engaged in the work of the
advisory board.
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(m) If an appointed member is absent from more than two (2) consecutive
meetings of the advisory board without good cause, then a vacancy is created.
(n) The advisory board shall:
(1) Advise the PRO throughout the needs assessment process, as
described in § 68-211-1206(a), and review the needs assessment;
(2) Advise the PRO on the development of producer responsibility plan
proposals, as described in § 68-211-1206(b);
(3) Review the producer responsibility plan proposal submitted to the
department under § 68-211-1205(c)(4), and recommend that the department
approve or reject the proposal;
(4) Review an individual producer responsibility program plan proposal
submitted to the department under § 68-211-1209, and recommend that the
department approve or reject the proposal; and
(5) Review the annual reports required by § 68-211-1207 and
recommend to the PRO and the department any program amendments that are
needed.
68-211-1204.
(a) The department shall:
(1) Review applications from prospective PROs. If applications from
more than one (1) PRO are submitted, then the department shall determine
which proposed PRO can most effectively implement this part. The department
may permit and approve additional PRO applicants if they provide unique ability
to manage a defined subgroup of covered materials;
(2) When determining whether to approve a PRO, consider whether the
PRO:
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(A) Has a governing board consisting of producers that represent
a diversity of covered materials introduced; and
(B) Demonstrates adequate financial responsibility and financial
controls to ensure proper management of funds;
(3) Consult with the PRO and the advisory board in the development of
the producer responsibility plan proposal;
(4) Approve or reject a producer responsibility plan proposal submitted to
the department under § 68-211-1205(c)(4);
(5) Approve or reject an individual producer responsibility plan proposal
submitted to the department under § 68-211-1209;
(6) Review the annual reports required by § 68-211-1207;
(7) Administer, review, oversee, and enforce the producer responsibility
plan;
(8) Review and annually update minimum recyclable and compostable
materials lists that consider the availability of recycling composting services for
each material, taking into consideration the impact of innovative collection and
sorting technology on the creation of viable end markets;
(9) By August 1, 2026, and each August 1 thereafter through August 1,
2029, provide written notice to the PRO of the estimated cost to the department
in performing its duties under this part, including all such costs incurred since the
date that this act becomes a law; and
(10) Beginning July 1, 2029, and annually thereafter, provide written
notice to the PRO of the department's estimates of the cost required to perform
the department's duties.
(b) The commissioner shall:
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(1) By October 15, 2031, and every two (2) years thereafter, submit a
report to the governor, to the chairman and ranking minority member of the
senate energy, agriculture and natural resources committee, and the chairman
and ranking minority member of the committee of house of representatives with
subject jurisdiction over solid waste. The report must contain:
(A) A summary of the implementation, administration, and
enforcement of this part;
(B) A summary of the most current needs assessment described
in § 68-211-1206(a);
(C) An internet link to a universal resource locator or other
internet address where the reports filed under § 68-211-1207 are
published;
(D) Recommendations for policy, statutory, or regulatory changes
to the producer responsibility program;
(E) An analysis of the impacts of exempting certain materials from
the definition of covered materials and of exempting certain persons from
the definition of producer;
(F) A list of efforts undertaken by the commissioner to enforce
and secure compliance with this part; and
(G) Any other information the commissioner deems to be
relevant; and
(2) Promulgate rules necessary to implement and administer this part.
All rules must be promulgated in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5.
68-211-1205.
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(a) By July 1, 2026, a producer shall establish a PRO.
(b) By July 1, 2026, the governing body of the PRO shall apply for approval to
the department describing how the PRO meets the requirements to be an approved
PRO by submitting the following:
(1) Contact information for a person responsible for implementing an
approved stewardship plan;
(2) A list of current member producers that have entered into written
agreements to operate under an approved stewardship plan administered by the
PRO;
(3) A plan for recruiting additional member producers and executing
written agreements confirming producers will operate under an approved
stewardship plan administered by the PRO;
(4) A list of current board members and the executive director, if different
than the person identified pursuant to subdivision (b)(1);
(5) Documentation demonstrating adequate financial responsibility and
financial controls to ensure the proper management of funds; and
(6) Payment of an implementation fee set by rule of the commissioner.
(c) The PRO shall:
(1) Facilitate at least one (1) needs assessment, as described in § 68-
211-1206, every five (5) years conducted by an independent third party approved
by the department using a consultation process to obtain recommendations from
the advisory board, local governments, service providers, PROs, and other
interested parties regarding the type and scope of information that should be
collected and analyzed in the needs assessment;
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(2) Engage with local governments to increase participation under this
part;
(3) Consult with the advisory board and the department in the
development of the producer responsibility plan proposal;
(4) Submit a producer responsibility plan proposal that covers a period of
five (5) years to the department and the advisory board; and
(5) Operate and administer the department-approved producer
responsibility plan as the producer responsibility program.
(d) By January 1, 2027, a producer must be a member of a PRO approved in
this state.
(e) By July 1, 2027, a PRO shall submit the results of a preliminary needs
assessment to the department and the advisory board.
(f) By July 1, 2028, a PRO shall submit the results of the initial needs
assessment to the department and the advisory board.
(g) By July 1, 2029, a PRO shall submit an initial producer responsibility plan
proposal to the department and the advisory board. When approved by the department,
the PRO shall begin implementation of the producer responsibility plan within six (6)
months of approval.
68-211-1206.
(a) The needs assessments required under § 68-211-1205(c)(1) must include:
(1) The service availability, capacity, performance, and gaps in the reuse,
composting, and recycling services provided to covered entities throughout this
state and the prices paid for reuse, composting, and recycling services;
(2) The documented cost of reuse, composting, and recycling services
incurred by public and private service providers to provide recycling services;
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(3) The processing capacity of existing infrastructure, the additional
infrastructure needed to meet or exceed the recycling, reuse, and composting
levels set by the producer responsibility plan proposal, and opportunities for the
use of innovative new technologies for sorting and collection to improve that
capacity;
(4) An assessment of the level and causes of contamination of source-
separated recyclable materials, source-separated compostable materials, and
collected reusables, and the impacts of contamination on service providers,
including the cost to manage that contamination;
(5) An evaluation of the opportunities and costs of various service
methods to increase reuse, composting, and recycling rates overall;
(6) The education needs in this state pertaining to composting, reuse,
and recycling; and
(7) Assessment and identification of materials for recommendation for
inclusion on the minimum recyclable and compostable materials lists maintained
under § 68-211-1204(a)(8).
(b) The producer responsibility plan proposal required under § 68-211-
1205(c)(4) must:
(1) Include a list of participating producers;
(2) Describe how the producer responsibility plan proposal will address
and implement the findings of the needs assessment in a fair and balanced
manner;
(3) Provide a financing mechanism in accordance with subsection (c) that
supports, to the extent possible, that recycling and composting services for
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materials listed on the minimum recyclables and compostables lists are as
convenient as mixed municipal solid waste collection;
(4) Describe how staffing and administering the implementation of the
producer responsibility plan will be handled;
(5) Describe the manner in which the PRO solicited and considered input
from stakeholders;
(6) Describe how the PRO will track compliance amongst producers and
will bring producers into compliance;
(7) Establish a financing mechanism based on PRO dues, as described
in subsection (c), which includes the following components:
(A) Varied PRO dues based on:
(i) The quantity of covered materials a producer sells,
distributes, or imports in this state;
(ii) Whether or not the covered materials are reusable,
compostable, or readily recyclable, which determination must
account for associated impacts as well as the extent to which
recycling or composting services for a covered material are
accessible to the consumer; and
(iii) The use of recycled content in covered materials so
that dues are lower for producers who use covered materials that
contain higher amounts of recycled content than other producers;
(B) Prioritize reuse by charging covered materials that are
managed through a reuse system only once, upon initial entry into the
marketplace;
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(C) Reduce the amount of packaging per individual covered
material that is necessary to efficiently deliver a product without damage
or spoilage and without reducing its ability to be recycled;
(D) Incentivize using materials and design attributes that reduce
the environmental impacts and human health impacts of covered
materials; and
(E) Prohibit the use of PRO dues for lobbying;
(8) Describe the strategy for reducing the quantity of covered materials in
this state, including how producers participating in a producer responsibility plan
will work together to reduce packaging through product design and program
innovations;
(9) Describe the strategy for increasing packaging reuse in this state,
including how producers will work together to design and implement innovative
reuse processes;
(10) Describe the strategy for increasing packaging composting in this
state, as appropriate and technologically feasible for certain covered materials;
(11) Describe performance standards for recycling, composting, and
reuse service providers as applicable to the service provided, including, but not
limited to:
(A) The quality of collected covered materials based upon the
service provided; and
(B) Employee safety programs, employee health benefits, living
wages, and other labor standards and safety practices;
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(12) Describe how the program will reimburse service providers under an
approved producer responsibility plan, including, but not limited to, a description
of:
(A) How the program will provide a methodology to calculate
differentiated reimbursement rates as provided under subsection (c);
(B) A process for service providers to submit invoices and be
reimbursed for recycling, composting, or reuse services; and
(C) Clear and reasonable timelines for reimbursement, at
intervals no longer than monthly unless agreed to by a service provider
and a PRO;
(13) Describe the actions taken or that will be taken for public outreach,
education, and communication concerning the recycling, reuse, or composting of
covered materials;
(14) Describe the process by which recycling, reuse, or composting
service providers may request reimbursement for costs associated with
transporting, collecting, and processing covered materials that are identified in
the producer responsibility plan;
(15) Describe how the PRO will work with recycling, reuse, and
composting service providers to utilize and expand on existing recycling, reuse,
and composting service providers and infrastructure to the greatest extent
possible, including, but not limited to:
(A) If the PRO intends to develop new collection and recycling
infrastructure, it must state why and how this may impact the existing
infrastructure and how it may impact collection and recycling of covered
materials on a statewide basis; and
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(B) Describe how a PRO will use competitive bidding processes
for infrastructure investments included in an approved stewardship plan;
(16) Describe how covered materials will be collected and processed in a
manner that retains their value for their highest use;
(17) Describe how the plan will provide or facilitate the deployment of
innovative recycling and reuse systems within a recycling center or materials
recovery facility that utilizes innovative technology to improve the identification
and sorting of covered materials, where feasible;
(18) Describe how the plan will utilize innovative technologies to improve
data collection of covered materials collected and processed and the disposition
of such materials throughout the materials recovery facility or recycling center;
(19) A description of how producers can purchase postconsumer
materials from service providers at market prices if the producer is interested in
obtaining recycled feedstock to achieve minimum postconsumer recycled content
performance targets and statewide requirements;
(20) A description of how the PRO has engaged with nonparticipating
local governments to facilitate and encourage participation under the producer
responsibility plan;
(21) A description of how local governments may begin operating under
an existing producer responsibility plan; and
(22) Include additional information as required by the advisory board and
the department.
(c) The PRO may charge each member producer dues according to each
producer's unit-, weight-, volume-, or sales-based market share, or by another method
the PRO determines to be an equitable determination of each producer's payment
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obligation, so that the aggregate dues charged to member producers is sufficient to pay
the commissioner's estimated costs under § 68-211-1204(a)(9) and (10) in full.
(d) In implementing the approved producer responsibility plan, the PRO shall
use a financing method that:
(1) Provides a methodology for reimbursement rates for covered services
for covered materials, exclusive of exempt materials. The methodology for
reimbursement rates must consider estimated revenue received by service
providers from the sale of covered materials based upon relevant material
indices and incorporate relevant cost information identified by the needs
assessment. Reimbursement rates must be annually updated and reflect the net
costs for covered services for covered materials from covered entities, at a
minimum. Reimbursement rates must be established equivalent to net costs as
established by a methodology in an approved plan;
(2) Calculates reimbursement rates per ton, by household, or by another
appropriate unit of measurement;
(3) Provides a formula for reimbursement rates for recycling, composting,
or reuse services for covered materials. Reimbursement rates must be
established equivalent to net costs pursuant to the methodology required by
subdivision (d)(1) for reasonable covered services costs;
(4) Bases reimbursement rates on the following, as applicable by the
service provided:
(A) The cost to collect covered material for recycling, a
proportional share of composting, or reuse adjusted to reflect conditions
that affect those costs, varied by region or jurisdiction in which the
covered services are provided, including, but not limited to:
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(i) The number and type of covered entities;
(ii) Population density;
(iii) Collection methods employed;
(iv) Distance traveled by collection vehicles to
consolidation or transfer facilities; to reuse, recycling, or
composting facilities; and to responsible markets;
(v) Other factors that may contribute to regional or
jurisdictional cost differences;
(vi) The proportion of covered compostable materials
within all source-separated compostable materials collected or
managed through composting; and
(vii) The general quality of covered materials collected by
service providers;
(B) The cost to transfer collected covered materials from
consolidation or transfer facilities to reuse, processing, recycling, or
composting facilities or to responsible markets to the extent not previously
factored in under subdivision (c)(4)(A)(iv);
(C) The cost to:
(i) Sort and process covered materials for sale or use and
remove contamination from covered materials by a recycling or
composting facility, less the average fair market value for that
covered material based on market indices for the region; and
(ii) Manage contamination removed from collected
covered material;
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(D) The costs of covered services for a refill system or covered
services provided for reusable covered materials and management of
contamination; and
(E) Administrative costs of service providers, including education,
public awareness campaigns, and outreach program costs, as applicable.
(e) A producer responsibility organization must describe a dispute resolution
process utilizing third-party mediators for disputes related to reimbursements.
(f) The PRO shall establish performance goals for each covered material type at
five-, ten-, and fifteen-year rolling intervals and demonstrate continual improvement in
reducing environmental impacts and human health impacts of covered materials over
time. The performance goals must be informed by PRO experience and knowledge and
include postconsumer recycled content goals, recyclability and recycling rate goals,
reuse goals, packaging reduction goals, composting goals, contamination reduction rate
goals, and any other goals required by the advisory board or the department. The PRO
shall review existing rates and dates for performance goals from other programs to use
in establishing a minimum that aims to exceed the national average.
(g) This part does not prohibit a PRO from establishing alternative systems as a
strategy for increasing the capture and reuse or recycling of covered materials.
(h) A producer responsibility plan expires five (5) years from the date that the
department approves the plan, unless the plan is renegotiated, renewed, or amended
and approved by the department.
68-211-1207.
(a) The PRO shall annually report to the department and the advisory board on
the progress toward meeting producer responsibility plan requirements and goals for the
immediately preceding year.
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(b) The progress report required by subsection (a) must include:
(1) A detailed description of the reimbursement methods used for
collecting, transporting, and processing covered materials;
(2) The status of achieving the performance goals established under §
68-211-1206(f), and if the goals have not been achieved, a description of the
actions proposed to achieve the goals;
(3) The amount of each covered material type collected in this state,
including the method of disposition of each covered material type;
(4) The amount of each collected covered material type exported from
this state for processing broken down by destination and disposition;
(5) The amount and disposition of each covered material not recycled as
a result of excessive contamination;
(6) The total cost of implementing the producer responsibility plan, as
determined by an independent financial auditor;
(7) Samples of all educational materials provided to consumers or other
entities pursuant to this part;
(8) A detailed description of the actions taken, and an evaluation of the
methods used, to disseminate educational materials, including
recommendations, if any, for how the educational component of the producer
responsibility plan can be improved;
(9) A detailed description of investments made in market development for
improving reuse, contamination reduction, and recycling infrastructure;
(10) A copy of a financial audit of program operations conducted by an
independent auditor;
(11) Changes to the PRO dues structure; and
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(12) Other information as required by the advisory board or the
department.
(c) A PRO shall maintain a website that uses best practices for accessibility and
contains at a minimum contact information for the PRO, PRO reports, needs
assessments, educational materials, and any other information required by the
department.
68-211-1208.
(a) By January 1, 2026, and annually thereafter, a service provider seeking
reimbursement for services provided under an approved producer responsibility plan
according to § 68-211-1206 must register with the commissioner by submitting the
following information:
(1) The contact information for a person representing the service
provider;
(2) The address of the service provider; and
(3) If applicable to services provided, a report of the total amount billed
for collection for covered entities, processing services, and transfer station
operations provided during the preceding calendar year and, when possible,
values must be separated for collection, transfer, and processing.
(b) The reimbursements provided to service providers under § 68-211-1206,
under an approved producer responsibility plan, must only be provided to service
providers that meet the performance standards established under an approved producer
responsibility plan.
68-211-1209.
(a) As an alternative method for participating in the producer responsibility
program, a producer may submit to the advisory board and the department an individual
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producer responsibility program plan proposal if they provide a unique ability to manage
a defined subgroup of covered materials, and if the producer notifies the department of
its intent to submit an individual plan no later than July 1, 2028, and by July 1 of each
subsequent year. An individual producer responsibility program plan proposal must:
(1) Comply with the requirements of § 68-211-1206(b);
(2) Describe how the producer participating in the individual program will
contribute to the department's cost of overseeing the program; and
(3) Describe any alternative collection programs operated by the
producer and their recycling, reuse, or composting rates.
(b) The producer must report annually in compliance with the requirements of §
68-211-1207.
(c) The advisory board shall review an individual producer responsibility program
plan proposal submitted under subsection (a) and make a recommendation concerning
approval of the proposal to the department.
68-211-1210.
(a) On or after January 1, 2030, if the department has approved a producer
responsibility plan, a producer shall not sell or distribute any products packaged in
covered materials in this state unless the producer is participating in the PRO producer
responsibility plan or an individual producer responsibility plan.
(b) A person that is not a PRO or a producer that violates this part is liable for a
civil penalty not to exceed twenty-five thousand dollars ($25,000) per day of violation.
(c) A PRO or a producer that violates this part or the requirements of a
stewardship plan approved by the commissioner is liable for a civil penalty in the
following amount:
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(1) For a first violation, a civil penalty not to exceed twenty-five thousand
dollars ($25,000) per day of violation;
(2) For a second violation, a civil penalty not to exceed fifty thousand
dollars ($50,000) per day of violation; and
(3) For a third or subsequent violation, a civil penalty not to exceed one
hundred thousand dollars ($100,000) per day of violation.
(d) The department may rescind approval for a PRO producer responsibility plan
or individual producer responsibility program plan at any time for good cause. If the
department rescinds a plan, the PRO or individual producer may amend and resubmit
the plan for approval.
(e) If, based upon the annual report, goals have not been met, the department
may require the PRO to amend the producer responsibility plan or a producer to amend
its individual producer responsibility program plan.
68-211-1211.
A PRO that arranges collection, recycling, composting, waste reduction, or reuse
services under this part may engage in anticompetitive conduct to the extent necessary
to plan and implement collection, recycling, composting, waste reduction, or reuse
systems to meet the obligations under this part and is immune from liability under state
laws relating to antitrust, restraint of trade, and unfair trade practices.
68-211-1212.
(a) Subject to subsection (b), this part must not be construed to require a local
government to agree to operate under a producer responsibility plan, nor does it restrict
the authority of a local government to provide waste management services to residents
or to contract with any entity to provide waste management services. A local
government that is also a service provider is eligible to be registered with the
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commissioner and reimbursed at the rates and schedule established in accordance with
an approved producer responsibility plan.
(b)
(1) A county having a population greater than two hundred thousand
(200,000), according to the 2020 federal census or a subsequent federal census,
shall operate under a producer responsibility plan as a service provider.
(2) A county having a population of two hundred thousand (200,000) or
less, according to the 2020 federal census or a subsequent federal census, may
choose to operate as a service provider under a producer responsibility plan.
(3) A municipality located in a non-participating county may choose to be
a service provider separate from the county.
68-211-1213.
(a) A producer who claims that package materials are not covered materials
under § 68-211-1202(5)(B)(3) must report the type, quantity, and disposition of the
materials to the department annually.
(b) A service provider must provide its PRO with data necessary to complete the
needs assessment and reports required by this part upon request of the PRO.
SECTION 2. Tennessee Code Annotated, Section 4-29-249(a), is amended by inserting
the following as a new subdivision:
( ) Producer responsibility program advisory board, created by § 68-211-1203;
SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2025, the
public welfare requiring it.