Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0600 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 269
3	3	By Campbell
4	4
5	5	HOUSE BILL 600
6	6	By Freeman
7	7
8	8
9	9	HB0600
10	10	001943
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 4,
14	14	Chapter 29, Part 2 and Title 68, Chapter 211,
15	15	relative to solid waste.
16	16
17	17	WHEREAS, packaging waste makes up nearly one-third of solid municipal waste with
18	18	just twelve percent recycled, sending nine hundred thousand tons of recyclable packaging to
19	19	landfills; and
20	20	WHEREAS, businesses in this State want and need the valuable materials that would
21	21	otherwise be lost to landfills, litter, and incineration; now, therefore,
22	22	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
23	23	SECTION 1. Tennessee Code Annotated, Title 68, Chapter 211, is amended by adding
24	24	the following as a new part:
25	25	68-211-1201.
26	26	(a) This part is known and may be cited as the "Tennessee Waste to Jobs Act."
27	27	(b) It is the intent of the general assembly that this part affects the development
28	28	and implementation of a comprehensive approach to addressing packaging waste in this
29	29	state, to include:
30	30	(1) Creating jobs and providing a sustainable funding mechanism for the
31	31	operation of local recycling systems, enabling investment in recycling
32	32	infrastructure;
33	33	(2) Diverting recyclable packaging waste from rapidly filling landfills in
34	34	this state;
35	35
36	36
37	37	- 2 - 001943
38	38
39	39	(3) Recovering valuable materials that would otherwise be lost to
40	40	landfills, litter, and incineration, while developing markets for these materials and
41	41	supporting businesses building a circular economy in this state; and
42	42	(4) Engaging producers of packaging in the innovative reduction and
43	43	reuse of packaging materials.
44	44	68-211-1202.
45	45	As used in this part:
46	46	(1) "Advisory board" means the producer responsibility program advisory
47	47	board, established under § 68-211-1203;
48	48	(2) "Commissioner" means the commissioner of environment and
49	49	conservation;
50	50	(3) "Compostable material" means a covered material that:
51	51	(A) Meets, and is labeled to reflect that it meets, the American
52	52	Society for Testing and Materials (ASTM) standard in effect on July 1,
53	53	2025, and any successor standard, as the D6400 specification for
54	54	labeling of plastics designed to be aerobically composted in municipal or
55	55	industrial facilities;
56	56	(B) Meets, and is labeled to reflect that it meets, the ASTM
57	57	standard in effect on July 1, 2025, and any successor standard, as the
58	58	D6868 specification for labeling of end items that incorporate plastics and
59	59	polymers as coatings or additives with paper and other substrates
60	60	designed to be aerobically composted in municipal or industrial facilities;
61	61	(C) Is composed of only wood without any coatings or additives;
62	62	(D) Is composed of only paper without any coatings or additives;
63	63	and
64	64
65	65
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67	67
68	68	(E) Is included on the minimum compostable materials list
69	69	maintained under § 68-211-1204(a)(8);
70	70	(4) "Covered entity" means a person or location that receives covered
71	71	services for covered materials in accordance with the requirements of this part,
72	72	including:
73	73	(A) A single-family residence;
74	74	(B) A multifamily residence;
75	75	(C) A school or other location where education or childcare is
76	76	provided;
77	77	(D) A nonprofit corporation with annual revenue of less than
78	78	thirty-five million dollars ($35,000,000); and
79	79	(E) A state agency, political subdivision, public area, or other
80	80	public entity or government unit;
81	81	(5) "Covered materials":
82	82	(A) Means packaging materials, except as provided in subdivision
83	83	(5)(B); and
84	84	(B) Does not include:
85	85	(i) Packaging materials intended to be used for the long-
86	86	term storage or protection of a durable product and that are
87	87	intended to transport, protect, or store the product for at least five
88	88	(5) years;
89	89	(ii) Packaging materials used in commercial, industrial, or
90	90	manufacturing processes;
91	91	(iii) Subject to § 68-211-1213(a), packaging materials that
92	92	are collected prior to receipt of the product by the consumer do
93	93
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96	96
97	97	not undergo separation from other materials at a commingled
98	98	recycling processing facility, and are reused or recycled at a
99	99	responsible end market;
100	100	(iv) Beverage containers subject to a future returnable
101	101	container deposit not established by the producer responsibility
102	102	organization;
103	103	(v) Packaging material used to contain a product that is
104	104	regulated as a drug or medical device by the federal food and
105	105	drug administration under the Federal Food, Drug, and Cosmetic
106	106	Act, as amended (21 U.S.C. § 301 et seq.), or associated
107	107	components and consumable medical equipment;
108	108	(vi) Packaging material used to contain a product that is
109	109	regulated under the Virus-Serum-Toxin Act, as amended (21
110	110	U.S.C. § 151 et seq.);
111	111	(vii) Packaging material used to contain a product that is
112	112	required to be sold in packaging material that meets the
113	113	requirements of the Poison Prevention Packaging Act, as
114	114	amended (15 U.S.C. § 1471 et seq.);
115	115	(viii) Packaging material used to contain a product that is
116	116	regulated as infant formula, as defined in 21 U.S.C. § 321; as a
117	117	medical food, as defined in 21 U.S.C. § 360ee(b); or as fortified
118	118	nutritional supplements used for individuals who require
119	119	supplemental or sole source nutrition to meet nutritional needs
120	120	due to special dietary needs directly related to cancer, chronic
121	121	kidney disease, diabetes, malnutrition, or failure to thrive, as those
122	122
123	123
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126	126	terms are defined by the world health organization's International
127	127	Classification of Diseases, Tenth Revision (ICD-10), as amended
128	128	or revised, or other medical conditions as determined by the
129	129	department, after consultation with the advisory board, by rule;
130	130	and
131	131	(ix) Any other material that the department, after
132	132	consultation with the advisory board, determines by rule to not be
133	133	a covered material;
134	134	(6) "Covered services" means the services provided for the recovery,
135	135	recycling, reuse, or composting of covered materials by local governments and
136	136	other providers, including the collection, transportation, and processing of
137	137	covered materials from the consumer to the end market, curbside services, and
138	138	drop-off centers;
139	139	(7) "De minimis producer" means a person that in their most recent fiscal
140	140	year:
141	141	(A) Introduced less than one (1) ton of covered material into this
142	142	state; or
143	143	(B) Earned global gross revenues of less than two million dollars
144	144	($2,000,000);
145	145	(8) "Department" means the department of environment and
146	146	conservation;
147	147	(9) "Packaging materials":
148	148	(A) Means, regardless of recyclability, a part of a package or
149	149	container, including material that is used for the containment, protection,
150	150
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153	153
154	154	handling, delivery, and presentation of a product that is sold, offered for
155	155	sale, imported, or distributed in this state; and
156	156	(B) Includes:
157	157	(i) Primary, secondary, and tertiary packaging intended for
158	158	the consumer market; and
159	159	(ii) Service packaging designed and intended to be filled
160	160	at the point of sale, including carry-out bags, bulk goods bags, and
161	161	take-out and home delivery food service packaging;
162	162	(10) "Producer":
163	163	(A) Except as provided in subdivision (10)(B), means the
164	164	following person responsible for compliance with requirements under this
165	165	part for a covered material:
166	166	(i) For items sold in or with packaging at a physical retail
167	167	location in this state:
168	168	(a) If the item is sold in or with packaging under the
169	169	brand of the item manufacturer or is sold in packaging that
170	170	lacks identification of a brand, then the producer is the
171	171	person that manufactures the item;
172	172	(b) If there is no person to which subdivision
173	173	(10)(A)(i)(a) applies, then the producer is the person that is
174	174	licensed to manufacture and sell or offer for sale to
175	175	consumers in this state an item with packaging under the
176	176	brand or trademark of another manufacturer or person;
177	177
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181	181	(c) If there is no person to which subdivisions
182	182	(10)(A)(i)(a) or (b) apply, then the producer is the brand
183	183	owner of the item;
184	184	(d) If there is no person to which subdivisions
185	185	(10)(A)(i)(a)-(c) apply within the United States, then the
186	186	producer is the person who is the importer of record for the
187	187	item into the United States for use in a commercial
188	188	enterprise that sells, offers for sale, or distributes the item
189	189	in this state; and
190	190	(e) If there is no person to which subdivisions
191	191	(10)(A)(i)(a)-(d) apply, then the producer is the person that
192	192	first distributes the item in or into this state;
193	193	(ii) For items sold or distributed in packaging in or into this
194	194	state via e-commerce, remote sale, or distribution:
195	195	(a) For packaging used to directly protect or
196	196	contain the item, the producer of the packaging is the
197	197	same as if the items sold in or with packaging at a physical
198	198	retail location in this state under subdivision (10)(A)(i); and
199	199	(b) For packaging used to ship the item to a
200	200	consumer, the producer of the packaging is the person that
201	201	packages the item to be shipped to the consumer; and
202	202	(iii) For packaging that is a covered material and for which
203	203	a producer cannot be identified under subdivision (10)(A)(i) or
204	204	subdivision (10)(A)(ii), the producer of the packaging is the person
205	205	that first distributes the item in or into this state;
206	206
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209	209
210	210	(B) Does not include:
211	211	(i) A state, a federal or state agency, a political subdivision
212	212	of a state, or other governmental unit;
213	213	(ii) A registered 501(c)(3) charitable organization or
214	214	501(c)(4) social welfare organization;
215	215	(iii) A de minimis producer;
216	216	(iv) A mill that uses any virgin wood fiber in the products it
217	217	produces;
218	218	(v) A paper mill that produces container board derived
219	219	from one hundred percent (100%) postconsumer recycled content
220	220	and non-post-consumer recycled content; or
221	221	(vi) A person who would otherwise be the producer of a
222	222	covered material sold, offered for sale, or distributed in or into this
223	223	state under subdivision (10)(A), if:
224	224	(a) Another person contracts with the person who
225	225	would otherwise be a producer to assume responsibility for
226	226	the producer's compliance with requirements of this part,
227	227	that person has joined a registered PRO as the
228	228	responsible producer, and the person who would otherwise
229	229	be a producer provides written certification of the contract
230	230	to the PRO; or
231	231	(b) The person who would otherwise be a producer
232	232	is a business operated wholly or in part as a franchise, in
233	233	which case the franchisor is the producer if that franchisor
234	234
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237	237
238	238	has franchisees that have a commercial presence within
239	239	the state;
240	240	(11) "Producer responsibility organization" or "PRO" means a nonprofit
241	241	organization that is created by a group of producers to implement a producer
242	242	responsibility plan;
243	243	(12) "Readily recyclable material" means a covered material that is
244	244	included as a recyclable material on the minimum recyclable materials list
245	245	maintained under § 68-211-1204(a)(8);
246	246	(13) "Recyclable" means a covered material that can technically and
247	247	safely be recycled;
248	248	(14) "Recycling":
249	249	(A) Means the process of collecting and preparing recyclable
250	250	materials and reusing the materials in their original form or using the
251	251	materials in manufacturing processes that do not cause the destruction of
252	252	recyclable materials in a manner that precludes further use; and
253	253	(B) Does not include:
254	254	(i) Use of covered materials for energy recovery or energy
255	255	generation by means of combustion;
256	256	(ii) Use of covered materials as, or in production of, a fuel
257	257	or fuel component; or
258	258	(iii) Disposal of discarded covered materials in a landfill,
259	259	including use as alternative daily cover;
260	260	(15) "Refill" means the continued use of a covered material by a
261	261	consumer through a system that is:
262	262
263	263
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265	265
266	266	(A) Intentionally designed and marketed for repeated filling of a
267	267	covered material to reduce demand for new production of the covered
268	268	material;
269	269	(B) Supported by adequate logistics and infrastructure to provide
270	270	convenient access for consumers; and
271	271	(C) Compliant with all applicable federal, state, and local statutes,
272	272	rules, ordinances, and other laws governing health and safety;
273	273	(16) "Reusable" means capable of reuse;
274	274	(17) "Reuse" means the return of a covered material to the marketplace
275	275	and the continued use of the covered material by a producer or service provider
276	276	when the covered material is:
277	277	(A) Intentionally designed and marketed to be used multiple times
278	278	for its original intended purpose without a change in form;
279	279	(B) Designed for durability and maintenance to extend its useful
280	280	life and reduce demand for new production of the covered material;
281	281	(C) Supported by adequate logistics and infrastructure at a retail
282	282	location, by a service provider, or on behalf of or by a producer, that
283	283	provides convenient access for consumers; and
284	284	(D) Compliant with all applicable federal, state, and local statutes,
285	285	rules, ordinances, and other laws governing health and safety; and
286	286	(18) "Service provider" means a person who provides covered services.
287	287	68-211-1203.
288	288	(a) The commissioner shall appoint a producer responsibility program advisory
289	289	board.
290	290
291	291
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293	293
294	294	(b) The advisory board is administratively attached to the department; provided,
295	295	that the department may select an impartial, third-party facilitator to convene and provide
296	296	administrative support to the advisory board.
297	297	(c) The commissioner shall not appoint registered lobbyists to the advisory
298	298	board.
299	299	(d) The membership of the advisory board must represent all geographic regions
300	300	of this state, including urban and rural counties and municipalities. The advisory board
301	301	consists of the following twenty (20) members:
302	302	(1) Three (3) voting members representing local governments in this
303	303	state;
304	304	(2) One (1) voting member representing materials recovery facilities;
305	305	(3) One (1) voting member representing covered service providers;
306	306	(4) One (1) voting member representing environmental nonprofit
307	307	organizations;
308	308	(5) One (1) voting member representing community-based nonprofit
309	309	organizations working in the area of solid waste;
310	310	(6) One (1) voting member representing a trade association or chamber
311	311	of commerce, or other business advocacy organization representing businesses
312	312	that are headquartered in this state;
313	313	(7) One (1) voting member representing glass packaging material
314	314	suppliers that is not a producer;
315	315	(8) One (1) voting member representing plastics packaging material
316	316	suppliers that is not a producer;
317	317	(9) One (1) voting member representing fiber packaging material
318	318	suppliers that is not a producer;
319	319
320	320
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322	322
323	323	(10) One (1) voting member representing metals packaging material
324	324	suppliers that is not a producer;
325	325	(11) One (1) voting member who has experience representing
326	326	underserved communities;
327	327	(12) One (1) voting member representing a solid waste landfill or transfer
328	328	station operating an onsite, public-facing recycling collection program;
329	329	(13) One (1) voting member representing durable goods manufacturing
330	330	that is not a producer;
331	331	(14) One (1) voting member representing retail and food services that is
332	332	not a producer;
333	333	(15) One (1) voting member representing an entity that develops or offers
334	334	for sale covered materials that are designed for reuse and maintained through a
335	335	reuse system or infrastructure or a statewide or national trade association that
336	336	represents such entities;
337	337	(16) One (1) voting member representing an entity that develops or offers
338	338	for sale covered materials that are designed for refill and maintained through a
339	339	refill system or infrastructure or a statewide or national trade association that
340	340	represents such entities;
341	341	(17) The commissioner, or the commissioner's designee, who serves as
342	342	a nonvoting member; and
343	343	(18) One (1) nonvoting member representing a PRO.
344	344	(e) The commissioner shall appoint the initial advisory board members by July 1,
345	345	2026. In making appointments to the advisory board, the commissioner shall strive to
346	346	ensure that the makeup of the advisory board reflects and represents the demographic
347	347	diversity of persons in this state.
348	348
349	349
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351	351
352	352	(f) The terms for appointed members of the advisory board are four (4) years.
353	353	(g) In making the initial appointments, the members appointed pursuant to
354	354	subdivisions (d)(2)-(9) and (15) are appointed for four-year terms, and the members
355	355	appointed pursuant to subdivisions (d)(1), (10)–(14), (16), and (18) are appointed for
356	356	two-year terms. Thereafter, all appointments are for the full four-year term. In the event
357	357	of a vacancy, the commissioner shall fill the vacancy for the unexpired term.
358	358	(h) After all initial appointments to the advisory board are made, but no later than
359	359	July 15, 2026, the commissioner, or the impartial third-party facilitator selected under
360	360	subsection (b), shall call the first meeting of the advisory board. At the first meeting, and
361	361	at the first meeting of each year ending in an even number thereafter, the advisory board
362	362	shall elect from among its appointed members a chair, vice chair, and any other officers
363	363	deemed necessary.
364	364	(i) After the first meeting of the advisory board, the advisory board shall meet at
365	365	the call of the chair and not less than two (2) times per year.
366	366	(j) Meetings of the advisory board must comply with the open meeting
367	367	requirements of title 8, chapter 44.
368	368	(k) All records of the advisory board are public records for purposes of the public
369	369	records law, compiled in title 10, chapter 7.
370	370	(l) All reimbursement for travel expenses must be in accordance with the
371	371	comprehensive travel regulations as promulgated by the department of finance and
372	372	administration and approved by the attorney general and reporter. All members of the
373	373	advisory board serve without compensation but are eligible for reimbursement of
374	374	necessary traveling and other appropriate expenses while engaged in the work of the
375	375	advisory board.
376	376
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379	379
380	380	(m) If an appointed member is absent from more than two (2) consecutive
381	381	meetings of the advisory board without good cause, then a vacancy is created.
382	382	(n) The advisory board shall:
383	383	(1) Advise the PRO throughout the needs assessment process, as
384	384	described in § 68-211-1206(a), and review the needs assessment;
385	385	(2) Advise the PRO on the development of producer responsibility plan
386	386	proposals, as described in § 68-211-1206(b);
387	387	(3) Review the producer responsibility plan proposal submitted to the
388	388	department under § 68-211-1205(c)(4), and recommend that the department
389	389	approve or reject the proposal;
390	390	(4) Review an individual producer responsibility program plan proposal
391	391	submitted to the department under § 68-211-1209, and recommend that the
392	392	department approve or reject the proposal; and
393	393	(5) Review the annual reports required by § 68-211-1207 and
394	394	recommend to the PRO and the department any program amendments that are
395	395	needed.
396	396	68-211-1204.
397	397	(a) The department shall:
398	398	(1) Review applications from prospective PROs. If applications from
399	399	more than one (1) PRO are submitted, then the department shall determine
400	400	which proposed PRO can most effectively implement this part. The department
401	401	may permit and approve additional PRO applicants if they provide unique ability
402	402	to manage a defined subgroup of covered materials;
403	403	(2) When determining whether to approve a PRO, consider whether the
404	404	PRO:
405	405
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408	408
409	409	(A) Has a governing board consisting of producers that represent
410	410	a diversity of covered materials introduced; and
411	411	(B) Demonstrates adequate financial responsibility and financial
412	412	controls to ensure proper management of funds;
413	413	(3) Consult with the PRO and the advisory board in the development of
414	414	the producer responsibility plan proposal;
415	415	(4) Approve or reject a producer responsibility plan proposal submitted to
416	416	the department under § 68-211-1205(c)(4);
417	417	(5) Approve or reject an individual producer responsibility plan proposal
418	418	submitted to the department under § 68-211-1209;
419	419	(6) Review the annual reports required by § 68-211-1207;
420	420	(7) Administer, review, oversee, and enforce the producer responsibility
421	421	plan;
422	422	(8) Review and annually update minimum recyclable and compostable
423	423	materials lists that consider the availability of recycling composting services for
424	424	each material, taking into consideration the impact of innovative collection and
425	425	sorting technology on the creation of viable end markets;
426	426	(9) By August 1, 2026, and each August 1 thereafter through August 1,
427	427	2029, provide written notice to the PRO of the estimated cost to the department
428	428	in performing its duties under this part, including all such costs incurred since the
429	429	date that this act becomes a law; and
430	430	(10) Beginning July 1, 2029, and annually thereafter, provide written
431	431	notice to the PRO of the department's estimates of the cost required to perform
432	432	the department's duties.
433	433	(b) The commissioner shall:
434	434
435	435
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437	437
438	438	(1) By October 15, 2031, and every two (2) years thereafter, submit a
439	439	report to the governor, to the chairman and ranking minority member of the
440	440	senate energy, agriculture and natural resources committee, and the chairman
441	441	and ranking minority member of the committee of house of representatives with
442	442	subject jurisdiction over solid waste. The report must contain:
443	443	(A) A summary of the implementation, administration, and
444	444	enforcement of this part;
445	445	(B) A summary of the most current needs assessment described
446	446	in § 68-211-1206(a);
447	447	(C) An internet link to a universal resource locator or other
448	448	internet address where the reports filed under § 68-211-1207 are
449	449	published;
450	450	(D) Recommendations for policy, statutory, or regulatory changes
451	451	to the producer responsibility program;
452	452	(E) An analysis of the impacts of exempting certain materials from
453	453	the definition of covered materials and of exempting certain persons from
454	454	the definition of producer;
455	455	(F) A list of efforts undertaken by the commissioner to enforce
456	456	and secure compliance with this part; and
457	457	(G) Any other information the commissioner deems to be
458	458	relevant; and
459	459	(2) Promulgate rules necessary to implement and administer this part.
460	460	All rules must be promulgated in accordance with the Uniform Administrative
461	461	Procedures Act, compiled in title 4, chapter 5.
462	462	68-211-1205.
463	463
464	464
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466	466
467	467	(a) By July 1, 2026, a producer shall establish a PRO.
468	468	(b) By July 1, 2026, the governing body of the PRO shall apply for approval to
469	469	the department describing how the PRO meets the requirements to be an approved
470	470	PRO by submitting the following:
471	471	(1) Contact information for a person responsible for implementing an
472	472	approved stewardship plan;
473	473	(2) A list of current member producers that have entered into written
474	474	agreements to operate under an approved stewardship plan administered by the
475	475	PRO;
476	476	(3) A plan for recruiting additional member producers and executing
477	477	written agreements confirming producers will operate under an approved
478	478	stewardship plan administered by the PRO;
479	479	(4) A list of current board members and the executive director, if different
480	480	than the person identified pursuant to subdivision (b)(1);
481	481	(5) Documentation demonstrating adequate financial responsibility and
482	482	financial controls to ensure the proper management of funds; and
483	483	(6) Payment of an implementation fee set by rule of the commissioner.
484	484	(c) The PRO shall:
485	485	(1) Facilitate at least one (1) needs assessment, as described in § 68-
486	486	211-1206, every five (5) years conducted by an independent third party approved
487	487	by the department using a consultation process to obtain recommendations from
488	488	the advisory board, local governments, service providers, PROs, and other
489	489	interested parties regarding the type and scope of information that should be
490	490	collected and analyzed in the needs assessment;
491	491
492	492
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494	494
495	495	(2) Engage with local governments to increase participation under this
496	496	part;
497	497	(3) Consult with the advisory board and the department in the
498	498	development of the producer responsibility plan proposal;
499	499	(4) Submit a producer responsibility plan proposal that covers a period of
500	500	five (5) years to the department and the advisory board; and
501	501	(5) Operate and administer the department-approved producer
502	502	responsibility plan as the producer responsibility program.
503	503	(d) By January 1, 2027, a producer must be a member of a PRO approved in
504	504	this state.
505	505	(e) By July 1, 2027, a PRO shall submit the results of a preliminary needs
506	506	assessment to the department and the advisory board.
507	507	(f) By July 1, 2028, a PRO shall submit the results of the initial needs
508	508	assessment to the department and the advisory board.
509	509	(g) By July 1, 2029, a PRO shall submit an initial producer responsibility plan
510	510	proposal to the department and the advisory board. When approved by the department,
511	511	the PRO shall begin implementation of the producer responsibility plan within six (6)
512	512	months of approval.
513	513	68-211-1206.
514	514	(a) The needs assessments required under § 68-211-1205(c)(1) must include:
515	515	(1) The service availability, capacity, performance, and gaps in the reuse,
516	516	composting, and recycling services provided to covered entities throughout this
517	517	state and the prices paid for reuse, composting, and recycling services;
518	518	(2) The documented cost of reuse, composting, and recycling services
519	519	incurred by public and private service providers to provide recycling services;
520	520
521	521
522	522	- 19 - 001943
523	523
524	524	(3) The processing capacity of existing infrastructure, the additional
525	525	infrastructure needed to meet or exceed the recycling, reuse, and composting
526	526	levels set by the producer responsibility plan proposal, and opportunities for the
527	527	use of innovative new technologies for sorting and collection to improve that
528	528	capacity;
529	529	(4) An assessment of the level and causes of contamination of source-
530	530	separated recyclable materials, source-separated compostable materials, and
531	531	collected reusables, and the impacts of contamination on service providers,
532	532	including the cost to manage that contamination;
533	533	(5) An evaluation of the opportunities and costs of various service
534	534	methods to increase reuse, composting, and recycling rates overall;
535	535	(6) The education needs in this state pertaining to composting, reuse,
536	536	and recycling; and
537	537	(7) Assessment and identification of materials for recommendation for
538	538	inclusion on the minimum recyclable and compostable materials lists maintained
539	539	under § 68-211-1204(a)(8).
540	540	(b) The producer responsibility plan proposal required under § 68-211-
541	541	1205(c)(4) must:
542	542	(1) Include a list of participating producers;
543	543	(2) Describe how the producer responsibility plan proposal will address
544	544	and implement the findings of the needs assessment in a fair and balanced
545	545	manner;
546	546	(3) Provide a financing mechanism in accordance with subsection (c) that
547	547	supports, to the extent possible, that recycling and composting services for
548	548
549	549
550	550	- 20 - 001943
551	551
552	552	materials listed on the minimum recyclables and compostables lists are as
553	553	convenient as mixed municipal solid waste collection;
554	554	(4) Describe how staffing and administering the implementation of the
555	555	producer responsibility plan will be handled;
556	556	(5) Describe the manner in which the PRO solicited and considered input
557	557	from stakeholders;
558	558	(6) Describe how the PRO will track compliance amongst producers and
559	559	will bring producers into compliance;
560	560	(7) Establish a financing mechanism based on PRO dues, as described
561	561	in subsection (c), which includes the following components:
562	562	(A) Varied PRO dues based on:
563	563	(i) The quantity of covered materials a producer sells,
564	564	distributes, or imports in this state;
565	565	(ii) Whether or not the covered materials are reusable,
566	566	compostable, or readily recyclable, which determination must
567	567	account for associated impacts as well as the extent to which
568	568	recycling or composting services for a covered material are
569	569	accessible to the consumer; and
570	570	(iii) The use of recycled content in covered materials so
571	571	that dues are lower for producers who use covered materials that
572	572	contain higher amounts of recycled content than other producers;
573	573	(B) Prioritize reuse by charging covered materials that are
574	574	managed through a reuse system only once, upon initial entry into the
575	575	marketplace;
576	576
577	577
578	578	- 21 - 001943
579	579
580	580	(C) Reduce the amount of packaging per individual covered
581	581	material that is necessary to efficiently deliver a product without damage
582	582	or spoilage and without reducing its ability to be recycled;
583	583	(D) Incentivize using materials and design attributes that reduce
584	584	the environmental impacts and human health impacts of covered
585	585	materials; and
586	586	(E) Prohibit the use of PRO dues for lobbying;
587	587	(8) Describe the strategy for reducing the quantity of covered materials in
588	588	this state, including how producers participating in a producer responsibility plan
589	589	will work together to reduce packaging through product design and program
590	590	innovations;
591	591	(9) Describe the strategy for increasing packaging reuse in this state,
592	592	including how producers will work together to design and implement innovative
593	593	reuse processes;
594	594	(10) Describe the strategy for increasing packaging composting in this
595	595	state, as appropriate and technologically feasible for certain covered materials;
596	596	(11) Describe performance standards for recycling, composting, and
597	597	reuse service providers as applicable to the service provided, including, but not
598	598	limited to:
599	599	(A) The quality of collected covered materials based upon the
600	600	service provided; and
601	601	(B) Employee safety programs, employee health benefits, living
602	602	wages, and other labor standards and safety practices;
603	603
604	604
605	605	- 22 - 001943
606	606
607	607	(12) Describe how the program will reimburse service providers under an
608	608	approved producer responsibility plan, including, but not limited to, a description
609	609	of:
610	610	(A) How the program will provide a methodology to calculate
611	611	differentiated reimbursement rates as provided under subsection (c);
612	612	(B) A process for service providers to submit invoices and be
613	613	reimbursed for recycling, composting, or reuse services; and
614	614	(C) Clear and reasonable timelines for reimbursement, at
615	615	intervals no longer than monthly unless agreed to by a service provider
616	616	and a PRO;
617	617	(13) Describe the actions taken or that will be taken for public outreach,
618	618	education, and communication concerning the recycling, reuse, or composting of
619	619	covered materials;
620	620	(14) Describe the process by which recycling, reuse, or composting
621	621	service providers may request reimbursement for costs associated with
622	622	transporting, collecting, and processing covered materials that are identified in
623	623	the producer responsibility plan;
624	624	(15) Describe how the PRO will work with recycling, reuse, and
625	625	composting service providers to utilize and expand on existing recycling, reuse,
626	626	and composting service providers and infrastructure to the greatest extent
627	627	possible, including, but not limited to:
628	628	(A) If the PRO intends to develop new collection and recycling
629	629	infrastructure, it must state why and how this may impact the existing
630	630	infrastructure and how it may impact collection and recycling of covered
631	631	materials on a statewide basis; and
632	632
633	633
634	634	- 23 - 001943
635	635
636	636	(B) Describe how a PRO will use competitive bidding processes
637	637	for infrastructure investments included in an approved stewardship plan;
638	638	(16) Describe how covered materials will be collected and processed in a
639	639	manner that retains their value for their highest use;
640	640	(17) Describe how the plan will provide or facilitate the deployment of
641	641	innovative recycling and reuse systems within a recycling center or materials
642	642	recovery facility that utilizes innovative technology to improve the identification
643	643	and sorting of covered materials, where feasible;
644	644	(18) Describe how the plan will utilize innovative technologies to improve
645	645	data collection of covered materials collected and processed and the disposition
646	646	of such materials throughout the materials recovery facility or recycling center;
647	647	(19) A description of how producers can purchase postconsumer
648	648	materials from service providers at market prices if the producer is interested in
649	649	obtaining recycled feedstock to achieve minimum postconsumer recycled content
650	650	performance targets and statewide requirements;
651	651	(20) A description of how the PRO has engaged with nonparticipating
652	652	local governments to facilitate and encourage participation under the producer
653	653	responsibility plan;
654	654	(21) A description of how local governments may begin operating under
655	655	an existing producer responsibility plan; and
656	656	(22) Include additional information as required by the advisory board and
657	657	the department.
658	658	(c) The PRO may charge each member producer dues according to each
659	659	producer's unit-, weight-, volume-, or sales-based market share, or by another method
660	660	the PRO determines to be an equitable determination of each producer's payment
661	661
662	662
663	663	- 24 - 001943
664	664
665	665	obligation, so that the aggregate dues charged to member producers is sufficient to pay
666	666	the commissioner's estimated costs under § 68-211-1204(a)(9) and (10) in full.
667	667	(d) In implementing the approved producer responsibility plan, the PRO shall
668	668	use a financing method that:
669	669	(1) Provides a methodology for reimbursement rates for covered services
670	670	for covered materials, exclusive of exempt materials. The methodology for
671	671	reimbursement rates must consider estimated revenue received by service
672	672	providers from the sale of covered materials based upon relevant material
673	673	indices and incorporate relevant cost information identified by the needs
674	674	assessment. Reimbursement rates must be annually updated and reflect the net
675	675	costs for covered services for covered materials from covered entities, at a
676	676	minimum. Reimbursement rates must be established equivalent to net costs as
677	677	established by a methodology in an approved plan;
678	678	(2) Calculates reimbursement rates per ton, by household, or by another
679	679	appropriate unit of measurement;
680	680	(3) Provides a formula for reimbursement rates for recycling, composting,
681	681	or reuse services for covered materials. Reimbursement rates must be
682	682	established equivalent to net costs pursuant to the methodology required by
683	683	subdivision (d)(1) for reasonable covered services costs;
684	684	(4) Bases reimbursement rates on the following, as applicable by the
685	685	service provided:
686	686	(A) The cost to collect covered material for recycling, a
687	687	proportional share of composting, or reuse adjusted to reflect conditions
688	688	that affect those costs, varied by region or jurisdiction in which the
689	689	covered services are provided, including, but not limited to:
690	690
691	691
692	692	- 25 - 001943
693	693
694	694	(i) The number and type of covered entities;
695	695	(ii) Population density;
696	696	(iii) Collection methods employed;
697	697	(iv) Distance traveled by collection vehicles to
698	698	consolidation or transfer facilities; to reuse, recycling, or
699	699	composting facilities; and to responsible markets;
700	700	(v) Other factors that may contribute to regional or
701	701	jurisdictional cost differences;
702	702	(vi) The proportion of covered compostable materials
703	703	within all source-separated compostable materials collected or
704	704	managed through composting; and
705	705	(vii) The general quality of covered materials collected by
706	706	service providers;
707	707	(B) The cost to transfer collected covered materials from
708	708	consolidation or transfer facilities to reuse, processing, recycling, or
709	709	composting facilities or to responsible markets to the extent not previously
710	710	factored in under subdivision (c)(4)(A)(iv);
711	711	(C) The cost to:
712	712	(i) Sort and process covered materials for sale or use and
713	713	remove contamination from covered materials by a recycling or
714	714	composting facility, less the average fair market value for that
715	715	covered material based on market indices for the region; and
716	716	(ii) Manage contamination removed from collected
717	717	covered material;
718	718
719	719
720	720	- 26 - 001943
721	721
722	722	(D) The costs of covered services for a refill system or covered
723	723	services provided for reusable covered materials and management of
724	724	contamination; and
725	725	(E) Administrative costs of service providers, including education,
726	726	public awareness campaigns, and outreach program costs, as applicable.
727	727	(e) A producer responsibility organization must describe a dispute resolution
728	728	process utilizing third-party mediators for disputes related to reimbursements.
729	729	(f) The PRO shall establish performance goals for each covered material type at
730	730	five-, ten-, and fifteen-year rolling intervals and demonstrate continual improvement in
731	731	reducing environmental impacts and human health impacts of covered materials over
732	732	time. The performance goals must be informed by PRO experience and knowledge and
733	733	include postconsumer recycled content goals, recyclability and recycling rate goals,
734	734	reuse goals, packaging reduction goals, composting goals, contamination reduction rate
735	735	goals, and any other goals required by the advisory board or the department. The PRO
736	736	shall review existing rates and dates for performance goals from other programs to use
737	737	in establishing a minimum that aims to exceed the national average.
738	738	(g) This part does not prohibit a PRO from establishing alternative systems as a
739	739	strategy for increasing the capture and reuse or recycling of covered materials.
740	740	(h) A producer responsibility plan expires five (5) years from the date that the
741	741	department approves the plan, unless the plan is renegotiated, renewed, or amended
742	742	and approved by the department.
743	743	68-211-1207.
744	744	(a) The PRO shall annually report to the department and the advisory board on
745	745	the progress toward meeting producer responsibility plan requirements and goals for the
746	746	immediately preceding year.
747	747
748	748
749	749	- 27 - 001943
750	750
751	751	(b) The progress report required by subsection (a) must include:
752	752	(1) A detailed description of the reimbursement methods used for
753	753	collecting, transporting, and processing covered materials;
754	754	(2) The status of achieving the performance goals established under §
755	755	68-211-1206(f), and if the goals have not been achieved, a description of the
756	756	actions proposed to achieve the goals;
757	757	(3) The amount of each covered material type collected in this state,
758	758	including the method of disposition of each covered material type;
759	759	(4) The amount of each collected covered material type exported from
760	760	this state for processing broken down by destination and disposition;
761	761	(5) The amount and disposition of each covered material not recycled as
762	762	a result of excessive contamination;
763	763	(6) The total cost of implementing the producer responsibility plan, as
764	764	determined by an independent financial auditor;
765	765	(7) Samples of all educational materials provided to consumers or other
766	766	entities pursuant to this part;
767	767	(8) A detailed description of the actions taken, and an evaluation of the
768	768	methods used, to disseminate educational materials, including
769	769	recommendations, if any, for how the educational component of the producer
770	770	responsibility plan can be improved;
771	771	(9) A detailed description of investments made in market development for
772	772	improving reuse, contamination reduction, and recycling infrastructure;
773	773	(10) A copy of a financial audit of program operations conducted by an
774	774	independent auditor;
775	775	(11) Changes to the PRO dues structure; and
776	776
777	777
778	778	- 28 - 001943
779	779
780	780	(12) Other information as required by the advisory board or the
781	781	department.
782	782	(c) A PRO shall maintain a website that uses best practices for accessibility and
783	783	contains at a minimum contact information for the PRO, PRO reports, needs
784	784	assessments, educational materials, and any other information required by the
785	785	department.
786	786	68-211-1208.
787	787	(a) By January 1, 2026, and annually thereafter, a service provider seeking
788	788	reimbursement for services provided under an approved producer responsibility plan
789	789	according to § 68-211-1206 must register with the commissioner by submitting the
790	790	following information:
791	791	(1) The contact information for a person representing the service
792	792	provider;
793	793	(2) The address of the service provider; and
794	794	(3) If applicable to services provided, a report of the total amount billed
795	795	for collection for covered entities, processing services, and transfer station
796	796	operations provided during the preceding calendar year and, when possible,
797	797	values must be separated for collection, transfer, and processing.
798	798	(b) The reimbursements provided to service providers under § 68-211-1206,
799	799	under an approved producer responsibility plan, must only be provided to service
800	800	providers that meet the performance standards established under an approved producer
801	801	responsibility plan.
802	802	68-211-1209.
803	803	(a) As an alternative method for participating in the producer responsibility
804	804	program, a producer may submit to the advisory board and the department an individual
805	805
806	806
807	807	- 29 - 001943
808	808
809	809	producer responsibility program plan proposal if they provide a unique ability to manage
810	810	a defined subgroup of covered materials, and if the producer notifies the department of
811	811	its intent to submit an individual plan no later than July 1, 2028, and by July 1 of each
812	812	subsequent year. An individual producer responsibility program plan proposal must:
813	813	(1) Comply with the requirements of § 68-211-1206(b);
814	814	(2) Describe how the producer participating in the individual program will
815	815	contribute to the department's cost of overseeing the program; and
816	816	(3) Describe any alternative collection programs operated by the
817	817	producer and their recycling, reuse, or composting rates.
818	818	(b) The producer must report annually in compliance with the requirements of §
819	819	68-211-1207.
820	820	(c) The advisory board shall review an individual producer responsibility program
821	821	plan proposal submitted under subsection (a) and make a recommendation concerning
822	822	approval of the proposal to the department.
823	823	68-211-1210.
824	824	(a) On or after January 1, 2030, if the department has approved a producer
825	825	responsibility plan, a producer shall not sell or distribute any products packaged in
826	826	covered materials in this state unless the producer is participating in the PRO producer
827	827	responsibility plan or an individual producer responsibility plan.
828	828	(b) A person that is not a PRO or a producer that violates this part is liable for a
829	829	civil penalty not to exceed twenty-five thousand dollars ($25,000) per day of violation.
830	830	(c) A PRO or a producer that violates this part or the requirements of a
831	831	stewardship plan approved by the commissioner is liable for a civil penalty in the
832	832	following amount:
833	833
834	834
835	835	- 30 - 001943
836	836
837	837	(1) For a first violation, a civil penalty not to exceed twenty-five thousand
838	838	dollars ($25,000) per day of violation;
839	839	(2) For a second violation, a civil penalty not to exceed fifty thousand
840	840	dollars ($50,000) per day of violation; and
841	841	(3) For a third or subsequent violation, a civil penalty not to exceed one
842	842	hundred thousand dollars ($100,000) per day of violation.
843	843	(d) The department may rescind approval for a PRO producer responsibility plan
844	844	or individual producer responsibility program plan at any time for good cause. If the
845	845	department rescinds a plan, the PRO or individual producer may amend and resubmit
846	846	the plan for approval.
847	847	(e) If, based upon the annual report, goals have not been met, the department
848	848	may require the PRO to amend the producer responsibility plan or a producer to amend
849	849	its individual producer responsibility program plan.
850	850	68-211-1211.
851	851	A PRO that arranges collection, recycling, composting, waste reduction, or reuse
852	852	services under this part may engage in anticompetitive conduct to the extent necessary
853	853	to plan and implement collection, recycling, composting, waste reduction, or reuse
854	854	systems to meet the obligations under this part and is immune from liability under state
855	855	laws relating to antitrust, restraint of trade, and unfair trade practices.
856	856	68-211-1212.
857	857	(a) Subject to subsection (b), this part must not be construed to require a local
858	858	government to agree to operate under a producer responsibility plan, nor does it restrict
859	859	the authority of a local government to provide waste management services to residents
860	860	or to contract with any entity to provide waste management services. A local
861	861	government that is also a service provider is eligible to be registered with the
862	862
863	863
864	864	- 31 - 001943
865	865
866	866	commissioner and reimbursed at the rates and schedule established in accordance with
867	867	an approved producer responsibility plan.
868	868	(b)
869	869	(1) A county having a population greater than two hundred thousand
870	870	(200,000), according to the 2020 federal census or a subsequent federal census,
871	871	shall operate under a producer responsibility plan as a service provider.
872	872	(2) A county having a population of two hundred thousand (200,000) or
873	873	less, according to the 2020 federal census or a subsequent federal census, may
874	874	choose to operate as a service provider under a producer responsibility plan.
875	875	(3) A municipality located in a non-participating county may choose to be
876	876	a service provider separate from the county.
877	877	68-211-1213.
878	878	(a) A producer who claims that package materials are not covered materials
879	879	under § 68-211-1202(5)(B)(3) must report the type, quantity, and disposition of the
880	880	materials to the department annually.
881	881	(b) A service provider must provide its PRO with data necessary to complete the
882	882	needs assessment and reports required by this part upon request of the PRO.
883	883	SECTION 2. Tennessee Code Annotated, Section 4-29-249(a), is amended by inserting
884	884	the following as a new subdivision:
885	885	( ) Producer responsibility program advisory board, created by § 68-211-1203;
886	886	SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a
887	887	law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2025, the
888	888	public welfare requiring it.