BILL ANALYSIS Senate Research Center S.B. 2689 89R9656 DRS-D By: Hancock Natural Resources 4/11/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Texas Commission on Environmental Quality (TCEQ) completed a study in 2021 after the passage of S.B. 649 by the 86th Legislature. S.B. 649 directed TCEQ to develop a plan to stimulate the use of recycled material feedstocks in processing and manufacturing. The 2021 TCEQ Report, titled the Recycling Market Development Plan, identified recommendations and strategies to increase the use of Texas-generated recycled material feedstocks, highlighted barriers and opportunities to increase recycling in Texas, and estimated the positive statewide economic impacts of recycling. According to the 2021 Report, approximately 16 million tons of recyclable materials were disposed of in Texas landfills in 2019. This equates to approximately $2 billion in value if those materials had been properly collected, sorted, and distributed back to markets. Continuing to improve and invest in Texas' recycling infrastructure can make accessing these economic gains a reality while reducing waste. Texas has taken the lead by passing Advanced Recycling in 2019 and can continue to lead as new technologies are developed for other recyclable material. Drawing from the recommendations from the TCEQ Study, S.B. 2689 advances a free-market approach toward creating a robust recycling infrastructure in Texas that incentivizes private market investment. S.B. 2689 establishes the Texas Recycling Market Development Program within TCEQ to improve recycling infrastructure and stakeholder engagement, incentivize the collection of post-consumer materials, provide grant funding for recycling pilot projects, educate Texans on recycling, and create a more circular economy for all recyclable materials. S.B. 2689 creates the Recycling Market Advisory Council to provide recommendations to TCEQ in coordination with the Texas Economic Development and Tourism Office to implement the Recycling Market Development Program. S.B. 2689 also enhances TCEQ's recycling education campaigns in cooperation with other state agencies and the Office of the Governor. As proposed, S.B. 2689 amends current law relating to the development, promotion, and funding of certain recycling projects. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in SECTION 3 (Sections 361.446, 361.447, and 361.449, Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 361.0152(a), Health and Safety Code, by adding Subdivision (2-a) to define "program." SECTION 2. Amends Sections 361.0152(c), (d), (f), (g), and (h), Health and Safety Code, as follows: (c) Requires the recycling market development program administrator (program administrator), rather than the Texas Commission on Environmental Quality (TCEQ), in cooperation with the Texas Economic Development and Tourism Office and in consultation with the recycling market advisory council established under Section 361.443, to produce for TCEQ a plan with recommendations to stimulate the use of recyclable materials as feedstock in processing and manufacturing. (d) Requires that the plan contain certain information, including a report on the progress and results of research conducted by the recycling market development program (program) under Section 361.442(b), a report on the status of grants and loans provided through the program, and legislative and policy recommendations to TCEQ regarding the purposes of the program. Makes nonsubstantive changes. (f) Requires the program administrator, rather than TCEQ, to the extent practicable in preparing the plan, to use methodologies and information derived from other recycling economic studies already performed. (g) Requires the program administrator to update the plan not later than December 1 of each even-numbered year, rather than every four years, and in a year in which the plan is updated, the plan is required to be included in the annual summary of municipal solid waste management produced by the municipal solid waste permits section of TCEQ and delivered to the governor and legislature. Makes a conforming change. (h) Requires TCEQ, in cooperation with other state agencies, including the Office of the Governor, to develop an education program intended for the public that is required to include certain information, including educational materials developed under Section 361.0202 (Development of Education Programs), as appropriate. SECTION 3. Amends Chapter 361, Health and Safety Code, by adding Subchapter N-1, as follows: SUBCHAPTER N-1. RECYCLING INNOVATION AND MARKET DEVELOPMENT Sec. 361.441. DEFINITIONS. Defines "fund" and "program." Sec. 361.442. RECYCLING MARKET DEVELOPMENT PROGRAM. (a) Requires TCEQ to establish a program to facilitate the realization of economic benefits to this state that may result from the expanded use of recycled material as feedstock in manufacturing and processing, promote the development of recycling infrastructure and technology in this state, and make policy recommendations to TCEQ. (b) Requires the program administrator to take certain actions. Sec. 361.443. RECYCLING MARKET ADVISORY COUNCIL. (a) Requires TCEQ to appoint an advisory council to advise the program administrator on the implementation of Section 361.0152 and this subchapter. (b) Requires TCEQ to appoint a person to the advisory council or fill a vacancy on the advisory council following review and recommendation of an applicant by the executive director of TCEQ (executive director). (c) Provides that the advisory council is composed of 13 members meeting certain criteria. (d) Requires the executive director to designate the presiding officer of the advisory council. (e) Provides that a member of the advisory council serves a five-year term. (f) Requires the advisory council to convene at the call of the presiding officer at least twice a year. (g) Provides that Section 2110.008 (Duration of Advisory Committees), Government Code, does not apply to the council. Sec. 361.444. TEXAS RECYCLING FUND. (a) Provides that the Texas Recycling Fund is established as a dedicated account in the general revenue fund to be administered by the executive director. (b) Provides that the fund consists of certain monies. (c) Provides that money in the fund is authorized to be used only as provided by this subchapter. Sec. 361.445. USE OF FUND. Authorizes TCEQ to use money in the fund for certain purposes. Sec. 361.446. RECYCLING INNOVATION GRANT PROGRAM. (a) Requires TCEQ by rule to establish a recycling innovation grant program to allow the program administrator to use money from the fund to make grants to entities that provide a public benefit to this state by conducting research on or investing in new recycling technologies and processes in this state. (b) Provides that projects that are authorized to be considered for a grant under this section include expanding recycling and sorting infrastructure, including pilot projects, expansions or upgrades of recycling equipment, promotion of development and improving services in rural communities in this state, or addressing contamination of recyclable material. Sec. 361.447. RECYCLING LOAN PROGRAM. (a) Requires TCEQ by rule to establish a loan program to allow the program administrator to use money from the fund to provide financial assistance to business entities for projects that provide a public benefit to this state by improving recycling outcomes in this state. (b) Requires TCEQ by rule to establish the eligibility requirements for a business entity to receive a loan under this section. Requires that the requirements require the business entity to be in good standing under the laws of this state, not owe delinquent taxes to a taxing unit of this state, and have fully repaid any previous loans received under this section. (c) Requires the program administrator, in making a loan under this section, to ensure the public purpose of developing recycling technology and infrastructure in this state is accomplished and TCEQ retains sufficient control over the loan to ensure the state receives a public benefit. (d) Provides that a recipient is authorized to use a loan made under this section only for expenses needed to develop recycling infrastructure and technology in this state in a manner that serves a public purpose. Sec. 361.448. ADMINISTRATIVE SUPPORT. Requires TCEQ to provide to the program administrative support, staff, and facilities as necessary for the program to implement this subchapter. Sec. 361.449. RULEMAKING. Requires TCEQ to adopt rules as necessary to implement this subchapter. SECTION 4. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2689
89R9656 DRS-D By: Hancock
Natural Resources
4/11/2025
As Filed
Senate Research Center
S.B. 2689
89R9656 DRS-D
By: Hancock
Natural Resources
4/11/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Texas Commission on Environmental Quality (TCEQ) completed a study in 2021 after the passage of S.B. 649 by the 86th Legislature. S.B. 649 directed TCEQ to develop a plan to stimulate the use of recycled material feedstocks in processing and manufacturing. The 2021 TCEQ Report, titled the Recycling Market Development Plan, identified recommendations and strategies to increase the use of Texas-generated recycled material feedstocks, highlighted barriers and opportunities to increase recycling in Texas, and estimated the positive statewide economic impacts of recycling.
According to the 2021 Report, approximately 16 million tons of recyclable materials were disposed of in Texas landfills in 2019. This equates to approximately $2 billion in value if those materials had been properly collected, sorted, and distributed back to markets. Continuing to improve and invest in Texas' recycling infrastructure can make accessing these economic gains a reality while reducing waste. Texas has taken the lead by passing Advanced Recycling in 2019 and can continue to lead as new technologies are developed for other recyclable material.
Drawing from the recommendations from the TCEQ Study, S.B. 2689 advances a free-market approach toward creating a robust recycling infrastructure in Texas that incentivizes private market investment.
* S.B. 2689 establishes the Texas Recycling Market Development Program within TCEQ to improve recycling infrastructure and stakeholder engagement, incentivize the collection of post-consumer materials, provide grant funding for recycling pilot projects, educate Texans on recycling, and create a more circular economy for all recyclable materials.
* S.B. 2689 creates the Recycling Market Advisory Council to provide recommendations to TCEQ in coordination with the Texas Economic Development and Tourism Office to implement the Recycling Market Development Program.
* S.B. 2689 also enhances TCEQ's recycling education campaigns in cooperation with other state agencies and the Office of the Governor.
As proposed, S.B. 2689 amends current law relating to the development, promotion, and funding of certain recycling projects.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in SECTION 3 (Sections 361.446, 361.447, and 361.449, Health and Safety Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 361.0152(a), Health and Safety Code, by adding Subdivision (2-a) to define "program."
SECTION 2. Amends Sections 361.0152(c), (d), (f), (g), and (h), Health and Safety Code, as follows:
(c) Requires the recycling market development program administrator (program administrator), rather than the Texas Commission on Environmental Quality (TCEQ), in cooperation with the Texas Economic Development and Tourism Office and in consultation with the recycling market advisory council established under Section 361.443, to produce for TCEQ a plan with recommendations to stimulate the use of recyclable materials as feedstock in processing and manufacturing.
(d) Requires that the plan contain certain information, including a report on the progress and results of research conducted by the recycling market development program (program) under Section 361.442(b), a report on the status of grants and loans provided through the program, and legislative and policy recommendations to TCEQ regarding the purposes of the program. Makes nonsubstantive changes.
(f) Requires the program administrator, rather than TCEQ, to the extent practicable in preparing the plan, to use methodologies and information derived from other recycling economic studies already performed.
(g) Requires the program administrator to update the plan not later than December 1 of each even-numbered year, rather than every four years, and in a year in which the plan is updated, the plan is required to be included in the annual summary of municipal solid waste management produced by the municipal solid waste permits section of TCEQ and delivered to the governor and legislature. Makes a conforming change.
(h) Requires TCEQ, in cooperation with other state agencies, including the Office of the Governor, to develop an education program intended for the public that is required to include certain information, including educational materials developed under Section 361.0202 (Development of Education Programs), as appropriate.
SECTION 3. Amends Chapter 361, Health and Safety Code, by adding Subchapter N-1, as follows:
SUBCHAPTER N-1. RECYCLING INNOVATION AND MARKET DEVELOPMENT
Sec. 361.441. DEFINITIONS. Defines "fund" and "program."
Sec. 361.442. RECYCLING MARKET DEVELOPMENT PROGRAM. (a) Requires TCEQ to establish a program to facilitate the realization of economic benefits to this state that may result from the expanded use of recycled material as feedstock in manufacturing and processing, promote the development of recycling infrastructure and technology in this state, and make policy recommendations to TCEQ.
(b) Requires the program administrator to take certain actions.
Sec. 361.443. RECYCLING MARKET ADVISORY COUNCIL. (a) Requires TCEQ to appoint an advisory council to advise the program administrator on the implementation of Section 361.0152 and this subchapter.
(b) Requires TCEQ to appoint a person to the advisory council or fill a vacancy on the advisory council following review and recommendation of an applicant by the executive director of TCEQ (executive director).
(c) Provides that the advisory council is composed of 13 members meeting certain criteria.
(d) Requires the executive director to designate the presiding officer of the advisory council.
(e) Provides that a member of the advisory council serves a five-year term.
(f) Requires the advisory council to convene at the call of the presiding officer at least twice a year.
(g) Provides that Section 2110.008 (Duration of Advisory Committees), Government Code, does not apply to the council.
Sec. 361.444. TEXAS RECYCLING FUND. (a) Provides that the Texas Recycling Fund is established as a dedicated account in the general revenue fund to be administered by the executive director.
(b) Provides that the fund consists of certain monies.
(c) Provides that money in the fund is authorized to be used only as provided by this subchapter.
Sec. 361.445. USE OF FUND. Authorizes TCEQ to use money in the fund for certain purposes.
Sec. 361.446. RECYCLING INNOVATION GRANT PROGRAM. (a) Requires TCEQ by rule to establish a recycling innovation grant program to allow the program administrator to use money from the fund to make grants to entities that provide a public benefit to this state by conducting research on or investing in new recycling technologies and processes in this state.
(b) Provides that projects that are authorized to be considered for a grant under this section include expanding recycling and sorting infrastructure, including pilot projects, expansions or upgrades of recycling equipment, promotion of development and improving services in rural communities in this state, or addressing contamination of recyclable material.
Sec. 361.447. RECYCLING LOAN PROGRAM. (a) Requires TCEQ by rule to establish a loan program to allow the program administrator to use money from the fund to provide financial assistance to business entities for projects that provide a public benefit to this state by improving recycling outcomes in this state.
(b) Requires TCEQ by rule to establish the eligibility requirements for a business entity to receive a loan under this section. Requires that the requirements require the business entity to be in good standing under the laws of this state, not owe delinquent taxes to a taxing unit of this state, and have fully repaid any previous loans received under this section.
(c) Requires the program administrator, in making a loan under this section, to ensure the public purpose of developing recycling technology and infrastructure in this state is accomplished and TCEQ retains sufficient control over the loan to ensure the state receives a public benefit.
(d) Provides that a recipient is authorized to use a loan made under this section only for expenses needed to develop recycling infrastructure and technology in this state in a manner that serves a public purpose.
Sec. 361.448. ADMINISTRATIVE SUPPORT. Requires TCEQ to provide to the program administrative support, staff, and facilities as necessary for the program to implement this subchapter.
Sec. 361.449. RULEMAKING. Requires TCEQ to adopt rules as necessary to implement this subchapter.
SECTION 4. Effective date: upon passage or September 1, 2025.