99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1433

 

Introduced 2/20/2015, by Sen. Melinda Bush

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Carpet Stewardship Act. Provides that, for all carpet sold in this State, producers shall, individually or through a stewardship group, implement and finance a statewide carpet stewardship program that manages the product by reducing the product's waste generation, promotes its reuse and recycling, and provides for negotiation and execution of agreements to collect, transport, and process the product for end-of-life recycling and reuse. Provides that the Illinois Environmental Protection Agency must approve each carpet stewardship plan for the plan to be valid. Establishes requirements for review of the plans, carpet stewardship assessments, requirements for producers, retailers, and distributors of carpet. Requires stewardship groups to submit annual reports to the Agency and pay specified administrative fees. Provides enforcement provisions for the Act. Establishes requirements for State procurement of carpet in the future. Effective January 1, 2016.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1433LRB099 08966 MGM 29139 b

1    AN ACT concerning carpet.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Carpet
5Stewardship Act.
 
6    Section 5. Findings and purpose.
7    The General Assembly finds that:
8        (1) based on data contained in the Illinois Commodity
9    Waste Generation and Characterization Study, commissioned
10    in 2008 by the Illinois Department of Commerce and Economic
11    Opportunity, approximately 280,000 tons of discarded
12    carpet and carpet padding are landfilled each year in this
13    State;
14        (2) carpet made from polyethylene terephthalate (PET)
15    and polytrimethylene terephthalate (PTT) has increased in
16    market share of carpet sold in the United States from
17    approximately 4% in 2007 to 30% in 2013 and is expected to
18    reach 40% by 2015; carpet made from PET and PTT is
19    currently not recyclable and has a negative value to carpet
20    recycling companies;
21        (3) numerous products can be manufactured from non-PET
22    and PTT carpet and carpet padding including new
23    post-consumer content carpet and padding, carpet backing,

 

 

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1    plastics, and engineered resins;
2        (4) in 2002 the carpet industry established a nonprofit
3    organization, the Carpet America Recovery Effort (CARE),
4    to work with the various stakeholders to develop solutions
5    to recover carpet and padding, and divert this material
6    from final disposal, of which approximately 93% is
7    currently landfilled according to CARE;
8        (5) CARE is the current carpet stewardship
9    organization responsible for implementing the carpet
10    stewardship law in the State of California, which is based
11    on the concept of Extended Producer Responsibility (EPR)
12    and represents at least 90% of the carpet manufacturers in
13    the United States;
14        (6) discarded carpet and padding are currently being
15    recycled in this State, albeit at a very low level due to a
16    lack of existing collection and processing infrastructure;
17    and
18        (7) carpet recycling can be significantly expanded
19    utilizing an Extended Producer Responsibility approach
20    which will lead to job creation through the collection,
21    processing, and marketing of discarded carpet and padding.
 
22    Section 10. Definitions.
23    "Agency" means the Illinois Environmental Protection
24Agency.
25    "Artificial turf" means artificial or synthetic turf used

 

 

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1for sports playing surfaces.
2    "Blended carpet" means carpet with a non-uniform face
3fiber, which is manufactured with multiple polymer types, fiber
4types, or both in the face of the constructed material.
5    "Brand" means a name, symbol, word, or mark that identifies
6the carpet, rather than its components, and attributes the
7product to the owner or licensee of the brand as the producer.
8    "CARE" means the Carpet America Recovery Effort, a
9third-party nonprofit carpet stewardship organization
10incorporated as a nonprofit corporation pursuant to Section
11501(c)(3) of Title 26 of the United States Code in 2002 and
12established to increase the reclamation and stewardship of
13discarded carpet.
14    "Carpet" means a manufactured article that is used in
15commercial buildings or single or multifamily residential
16buildings, is affixed or placed on the floor or building
17walking surface as a decorative or functional building interior
18or exterior feature, and is primarily constructed of a top
19visible surface of synthetic face fibers or yarns or tufts
20attached to a backing system derived from synthetic or natural
21materials. "Carpet" includes, but is not limited to, a
22commercial or residential broadloom carpet or modular carpet
23tiles, and artificial turf. "Carpet" includes a pad or
24underlayment used in conjunction with a carpet. "Carpet" does
25not include handmade rugs, area rugs, or mats.
26    "Consumer" means any person who makes a purchase at retail.

 

 

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1    "Discarded carpet" means carpet that is no longer used for
2its manufactured purpose.
3    "Distributor" or "wholesaler" means a person who buys or
4otherwise acquires carpet from another source and sells or
5offers to sell that carpet to retailers in this State.
6    "Person" means any individual, partnership,
7co-partnership, firm, company, corporation, association, joint
8stock company, trust, estate, political subdivision, State
9agency, or any other legal entity, or their legal
10representative, agent, or assigns.
11    "PET carpet" means carpet made from polyethylene
12terephthalate.
13    "Producer" means a person that:
14        (1) has legal ownership of the brand, brand name, or
15    co-brand of carpet sold in this State;
16        (2) imports carpet branded by a producer that meets the
17    definition under paragraph (1) when the producer has no
18    physical presence in the United States;
19        (3) if paragraphs (1) and (2) do not apply, makes
20    unbranded carpet that is sold in this State; or
21        (4) sells carpet at wholesale or retail, does not have
22    legal ownership of the brand, and elects to fulfill the
23    responsibilities of the producer for the product.
24    "PTT carpet" means carpet made from polytrimethylene
25terephthalate.
26    "Recycling" means the process by which discarded carpet is

 

 

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1collected, processed, and returned to the economic mainstream
2in the form of raw materials or products. "Recycling" does not
3include energy recovery or energy generation by means of
4combusting discarded carpet, and it does not include any use
5within the permitted boundaries of a municipal solid waste
6landfill unit.
7    "Retailer" means any person engaged in the business of
8making sales at retail that generate occupation or use tax
9revenue.
10    "Reuse" means donating or selling a collected discarded
11carpet back into the market for its original intended use, when
12the discarded carpet retains its original purpose and
13performance characteristics.
14    "Sale" or "sell" means transfer of title of carpet for
15consideration, including a remote sale conducted through a
16sales outlet, catalog, website, or similar electronic means.
17"Sale" or "sell" includes a lease through which carpet is
18provided to a consumer by a producer, distributor, or retailer.
19    "Stewardship assessment" means the amount added to the
20purchase price of PET carpet, PTT carpet, and blended carpet
21sold in this State that is necessary to cover the cost of
22collecting, transporting, and processing discarded carpet by
23the stewardship group pursuant to a stewardship plan.
24    "Stewardship group" means an organization appointed by one
25or more producers to act as an agent on behalf of the producer
26to design, submit, implement, and administer a product

 

 

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1stewardship plan under this Act.
2    "Stewardship plan" means a detailed plan written by a
3stewardship group, on behalf of one or more producers, that
4includes all the information required by this Act.
 
5    Section 15. Carpet stewardship program and sale
6requirement.
7    (a) For all carpet sold in this State, producers shall,
8individually or through a stewardship group, implement and
9finance a statewide carpet stewardship program that manages the
10product by reducing the product's waste generation, promotes
11its reuse and recycling, and provides for negotiation and
12execution of agreements to collect, transport, and process the
13product for end-of-life recycling and reuse. On or before
14October 1, 2016, each producer shall join the stewardship
15group.
16    (b) On and after July 1, 2017, a producer, distributor, or
17retailer that offers carpet for sale in this State, is not in
18compliance with this Act and is subject to penalties under
19Section 65, if the carpet is not subject to a stewardship plan
20this is submitted by a stewardship group that includes the
21producer of that carpet, which plan has been approved by the
22Agency under Section 25.
23    (c) On July 1, 2017, and annually thereafter, the Agency
24shall post on its website a list of the carpet producers that
25are in compliance with this Act.

 

 

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1    (d) Until January 1, 2021, CARE shall be the sole carpet
2stewardship group allowed under this Act. After that date, one
3or more producers may form a separate stewardship group to
4fulfill the requirements of this Act provided the producer or
5producers comprising the stewardship group have a percentage
6share of total carpet sales in this State that is 20% or
7greater based on the carpet sales data for the previous four
8quarters for which sales data is available.
 
9    Section 20. Carpet stewardship plan.
10    (a) On or before January 1, 2017, a producer shall submit a
11stewardship plan, for the planning period of July 1, 2017
12through June 30, 2020, to the Agency and receive approval of
13the plan or shall submit documentation to the Agency that
14demonstrates that the producer has entered into an agreement
15with a stewardship organization to be an active participant in
16an approved carpet stewardship plan. A stewardship plan shall
17include, at a minimum, all of the following elements:
18        (1) certification that the carpet stewardship program
19    will accept for collection all discarded carpet,
20    regardless of type or which producer manufactured the
21    product and its individual components;
22        (2) contact information for the individual and the
23    entity submitting the plan, designation of a program
24    manager responsible for administering the program in this
25    State, a list of all producers participating in the carpet

 

 

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1    stewardship program, and the brands covered by the product
2    stewardship program;
3        (3) a description of the methods by which discarded
4    carpet will be collected in all areas in this State without
5    relying on end-of-life fees being charged to consumers,
6    including an explanation of how the collection system will
7    be convenient and adequate to serve the needs of small
8    businesses and residents in both urban and rural areas on
9    an ongoing basis and how the stewardship group will achieve
10    a convenience standard of having collection sites in 50% of
11    the counties in this State by July 1, 2018 and 90% of the
12    counties in this State by July 1, 2019;
13        (4) a description of how the adequacy of the collection
14    program will be monitored and maintained;
15        (5) the names and locations of collectors,
16    transporters, and processors that will manage discarded
17    carpet;
18        (6) a description of how the discarded carpet and the
19    products' components will be safely and securely
20    transported, tracked, and handled from collection through
21    final recycling and processing;
22        (7) a description of the method to be used to reuse,
23    deconstruct, or recycle the discarded carpet to ensure that
24    the products' components, to the extent feasible, are
25    transformed or remanufactured into finished products for
26    use;

 

 

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1        (8) a description of the promotion and outreach
2    activities and proposed budget that will be used to
3    encourage participation in the collection and recycling
4    programs and how the activities' effectiveness will be
5    evaluated and the program modified, if necessary;
6        (9) evidence of adequate insurance and financial
7    assurance that may be required for collection, handling,
8    and disposal operations;
9        (10) three-year performance goals, including an
10    estimate of the percentage of discarded carpet that will be
11    collected, reused, and recycled during each of the first 3
12    years of the stewardship plan; the performance goals shall
13    include a specific goal for the amount of discarded carpet
14    that will be collected and recycled and reused during each
15    year of the plan, the performance goals must be based on:
16            (i) the most recent collection data available for
17        this State;
18            (ii) the estimated amount of discarded carpet
19        disposed of annually;
20            (iii) the weight of the discarded carpet that is
21        expected to be available for collection annually; and
22            (iv) actual collection data from other existing
23        carpet stewardship programs;
24        The stewardship plan must state the methodology used to
25    determine these goals.
26        (11) a discussion of the status of end markets for

 

 

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1    discarded carpet and what, if any, additional end markets
2    are needed to improve the functioning of the program;
3        (12) a discussion of carpet design and manufacturing
4    changes that the producers are considering to reduce
5    toxicity, water use, or energy use associated with the
6    production of carpet and efforts to increase the recycled
7    content, recyclability or carpet longevity;
8        (13) a funding mechanism, consistent with Section 30,
9    that demonstrates sufficient funding to carry out the plan,
10    including the administrative, operational, and capital
11    costs of the plan, and payment of incentive payments to
12    carpet processors for the processing of PET, PTT and
13    blended carpet;
14        (14) annual budgets showing revenue and expenditure
15    projections for the first 3 years of the program;
16        (15) a process by which the financial activities of the
17    stewardship group or individual producer that are related
18    to the implementation of the plan shall be subject to an
19    independent audit, which may be reviewed by the Agency;
20        (16) an evaluation of the feasibility and
21    effectiveness of a ban on landfilling carpet in this State,
22    and an opinion on whether to recommend a landfill ban;
23        (17) baseline information for calendar year 2014 on the
24    amount in square feet and pounds of carpet sold in this
25    State by type of polymer or non-polymer material used to
26    make the carpet; and

 

 

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1        (18) a discussion of the feasibility, cost and
2    effectiveness of labeling the backside of new carpet with
3    the polymer type or non-polymer material used to
4    manufacture the carpet to assist processors in more easily
5    identifying the type of discarded carpet collected for
6    processing.
7    (b) An update to the plan shall be submitted, at a minimum,
8every 3 years, or if the Agency determines that a plan update
9is needed prior to the minimum of every 3 years.
10    (c) The entities responsible for each stewardship plan
11shall notify the Agency within 30 days of any significant
12changes or modifications to the plan or its implementation.
13Within 30 days of the notification, a written plan revision
14shall be submitted to the Agency for review and approval.
15    (d) After January 1, 2021, a stewardship group not
16associated with CARE may be appointed by one or more producers
17to design, submit, and administer a stewardship plan in
18accordance with the requirements of this Section, and that plan
19may be approved by the Agency in accordance with Section 25.
 
20    Section 25. Review and approval of the plan and plan
21updates.
22    (a) Each stewardship organization or individual producer
23submitting a stewardship plan or a plan update shall consult
24with stakeholders including retailers, contractors,
25collectors, recyclers, local government, and customers, during

 

 

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1the development of the plan.
2    (b) Within 14 days of receipt of a proposed stewardship
3plan or plan update, the Agency shall post the plan or plan
4update, on its website. Within 30 days of its posting on the
5Agency website, a person may provide written comments to the
6stewardship group regarding the plan or plan update and those
7comments shall be responded to by the stewardship group within
830 days after receipt of the comments.
9    (c) Within 90 days after receipt of a proposed stewardship
10plan or plan update, and not prior to the public comment
11opportunity provided in subsection (b) of this Section, the
12Agency shall determine whether the plan or plan update complies
13with Section 20 of this Act. If the Agency approves a plan or
14plan update, the Agency shall notify the applicant of the plan
15approval in writing. If the agency rejects a plan or plan
16update, the Agency shall notify the applicant in writing of the
17reasons for rejecting the plan. An applicant whose plan or plan
18update is rejected by the Agency shall submit a revised plan to
19the Agency within 60 days after receiving notice of rejection.
20Any proposed changes to a stewardship plan or plan update must
21be approved by the Agency in writing.
22    (d) All stewardship plans and plan updates approved by the
23Agency shall be placed on the Agency's website and made
24available at the Agency's headquarters for public review within
2530 days of the Agency's approval.
 

 

 

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1    Section 30. Carpet stewardship assessment.
2    (a) On and after October 1, 2016, a producer of PET carpet,
3PTT carpet, or blended carpet shall add a carpet stewardship
4assessment fee of 3.33 cents per square foot to the purchase
5price of all PET carpet, PTT carpet, and blended carpet sold in
6this State by that producer. The assessment added under this
7Section shall be remitted on a quarterly basis to the
8stewardship group.
9    (b) The assessment established under this Section is exempt
10from taxes imposed by the Illinois Department of Revenue and
11shall meet both of the following requirements:
12        (1) The assessment shall be added by the producer to
13    the purchase price of all PET, PTT, and blended carpet sold
14    by producers to an Illinois retailer or distributor or
15    otherwise sold for use in this State. The assessment shall
16    be clearly visible on all invoices or functionally
17    equivalent billing documents as a separate line item and
18    shall be accompanied by a brief description of the
19    assessment.
20        (2) Each retailer and distributor shall add the
21    assessment to the purchase price of all PET, PTT, and
22    blended carpet sold in this State. The assessment shall be
23    clearly visible on all invoices or functionally equivalent
24    billing documents as a separate line item and shall be
25    accompanied by a brief description of the assessment.
26    (c) It is this State's intent that a goal of this Act be to

 

 

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1reduce the amount of the assessment fee as the carpet
2stewardship program is implemented.
3    (d) If the amount of the assessment is too low to properly
4fund the carpet stewardship program the stewardship group may
5submit a plan update, which must be approved by the Agency, in
6accordance with the requirements of Section 25, prior to the
7fee being increased.
8    (e) The assessment shall be lowered if at any time the fee
9generates a fund balance at the end of a program year that is
10greater than 12 months operating costs of the carpet
11stewardship program. If a fund balance above a year's operating
12cost is reached, the stewardship group shall submit a plan
13update to reduce the assessment in accordance with the
14requirements of Section 25.
 
15    Section 35. State action antitrust exemption. Each
16producer and the representative stewardship group shall be
17immune from liability for any claim of violation of antitrust
18law or unfair trade practice if the conduct is a violation of
19antitrust law, to the extent the producer or stewardship group
20is exercising authority under the provisions of this Act.
 
21    Section 40. Requirements applicable to producers.
22    (a) On and after October 1, 2016, a producer of PET, PTT,
23or blended carpet shall add the stewardship assessment, as
24established in Section 30, to the cost of PET, PTT, and blended

 

 

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1carpet sold to retailers and distributors in this State by the
2producer.
3    (b) Producers of carpet or the stewardship group shall
4provide consumers with educational materials regarding the
5stewardship assessment and carpet stewardship program. The
6materials shall include, but are not limited to, information
7regarding available end-of-life management options for carpet
8offered through the carpet stewardship program and information
9that notifies the consumers that a charge for the operation of
10the carpet stewardship program is included in the purchase
11price of PET, PTT, and blended carpet sold in this State.
 
12    Section 45. Requirements applicable to retailers and
13distributors.
14    (a) Three months after program plan approval, no carpet may
15be sold in this State unless the product's producer is
16participating in an approved stewardship plan.
17    (b) Any retailer or distributor may participate, on a
18voluntary basis, as a designated collection point pursuant to a
19product stewardship program and in accordance with applicable
20law.
21    (c) No retailer or distributor shall be found to be in
22violation of this Section if, on the date the carpet was
23ordered from the producer or its agent, the producer was listed
24as compliant on the Agency's website according to this Act.
 

 

 

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1    Section 50. Requirements applicable to the Agency.
2    (a) Beginning July 1, 2017, and annually thereafter, for
3the benefit of assisting consumers who wish to find collection
4sites for recycling carpet, the Agency shall post on its
5website the location of all collection sites identified to the
6Agency by producers in their plans and annual reports.
7    (b) Beginning July 1, 2017, and annually thereafter, the
8Agency shall post on its website (i) the list of producers for
9which the Agency has received a plan or plan update in
10accordance with Section 20, and (ii) the plan as approved by
11the Agency and any subsequent updates within 30 days of
12receipt.
13    (c) Beginning May 1, 2018, and annually thereafter, the
14Agency shall post on its website (i) the list of producers for
15which the Agency has received an annual report in accordance
16with Section 55, and (ii) copies of the annual reports.
 
17    Section 55. Annual stewardship reports.
18    (a) By April 1, 2018, and by April of each year thereafter,
19each stewardship group shall submit a report to the Agency that
20includes, for the previous calendar year, a description of the
21carpet stewardship program, including, but not limited to, the
22following:
23        (1) the amount of carpet sold by square feet and pounds
24    in this State during the reporting period by polymer type
25    or non-polymer material, including a separate reporting of

 

 

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1    the amount of PET, PTT, and blended carpet sold in this
2    State for which the carpet stewardship assessment was
3    collected;
4        (2) a description of the methods used to collect,
5    transport, and process discarded carpet in all regions of
6    this State, and a listing of the persons used to collect,
7    transport, and process discarded carpet;
8        (3) identification of all discarded carpet collection
9    sites in this State and whether the requirement of
10    paragraph (3) of subsection (a) of Section 20 has been met;
11        (4) the weight of all discarded carpet collected and
12    recycled in all regions of this State, and a comparison to
13    the performance goals and recycling rates established in
14    the stewardship plan;
15        (5) the weight of discarded carpet collected in this
16    State but not recycled and its ultimate disposition, and a
17    comparison to the performance goals in the stewardship
18    plan;
19        (6) the total cost of the implementing the carpet
20    stewardship plan and a copy of the independent audit
21    regarding the financial activities of the stewardship
22    group;
23        (7) a proposed budget for implementing the carpet
24    stewardship plan in the subsequent calendar year;
25        (8) an evaluation of the funding mechanism and its
26    ability to properly fund the implementation of the

 

 

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1    stewardship plan, and provide adequate incentive payments
2    to processors for managing PET, PTT, and blended carpet;
3        (9) identification of the facilities processing
4    carpet, and the weight processed at each facility and each
5    facility's processing capacity;
6        (10) an evaluation of the effectiveness of the carpet
7    stewardship plan, and anticipated steps, if needed, to
8    improve performance;
9        (11) a discussion of progress made toward achieving
10    carpet design changes according to paragraph (12) of
11    subsection (a) of Section 20;
12        (12) samples of educational materials provided to
13    consumers and carpet installers, and an evaluation of the
14    effectiveness of the materials and the methods used to
15    disseminate the materials; the evaluation shall include,
16    but not be limited to, information on the number of
17    consumers and carpet installers that received or viewed the
18    educational materials, and any consumer and carpet
19    installer survey data that may have been collected
20    regarding the educational materials used; and
21        (13) an evaluation of the feasibility and
22    effectiveness of a ban on landfilling carpet in this State,
23    and an opinion on whether to recommend a landfill ban.
 
24    Section 60. Administrative fee.
25    (a) The stewardship organization submitting a stewardship

 

 

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1plan shall pay the Agency an annual administrative fee of
2$10,000.
3    (b) A stewardship organization subject to this Section
4shall pay the Agency's administrative fee under subsection (a)
5on or before January 1, 2017, and annually thereafter.
6    (c) The Agency shall deposit the fees collected under this
7Section into the Solid Waste Management Fund.
 
8    Section 65. Enforcement.
9    (a) On and after the implementation date of the carpet
10stewardship program, no producer, distributor, or retailer
11shall sell or offer for sale carpet to any person in this State
12if the producer of the carpet is not a member of a stewardship
13group with an approved plan.
14    (b) No retailer or distributor shall be found in violation
15of the provisions of subsection (a) if, on the date the carpet
16was ordered from the producer or its agent, the producer was
17listed on the Agency's website in accordance with the
18provisions of subsection (b) of Section 50.
19    (c) The Attorney General or State's Attorney may request,
20and the Court impose, after providing notice and opportunity to
21be heard, a civil penalty in the amount of $500 per day against
22any person who violates the terms of this Act.
23    (d) Nothing in this Act prohibits a retailer or distributor
24from selling their inventory of carpet existing prior to the
25date the first stewardship plan prepared by CARE is approved by

 

 

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1the Agency.
2    (e) The penalties provided for in this Section may be
3recovered in a civil action brought in the name of the people
4of the State of Illinois by the State's Attorney of the county
5in which the violation occurred or by the Attorney General. Any
6funds collected under this Section in an action in which the
7Attorney General has prevailed shall be deposited in the
8Environmental Protection Trust Fund, to be used in accordance
9with the provisions of the Environmental Trust Fund Act.
 
10    Section 70. State procurement of carpet. Beginning on
11January 1, 2018, at least 35% of carpet purchased by State
12agencies shall be carpet with post-consumer recycled content
13from discarded carpet and comply with the National Science
14Foundation/American National Standards Institute (NSF/ANSI)
15140-2009 Standard, Platinum Level or the most current version
16in effect as provided by the American National Standards
17Institute. Thereafter, those purchases shall increase by a rate
18of 10% per year until it reaches 75%. Prior to January 1, 2018,
19CARE shall provide a report to the Illinois Department of
20Central Management Services on the other types of products that
21contain recycled carpet as a feedstock that the State should
22consider purchasing.
 
23    Section 75. Report to the General Assembly. No later than
24January 1, 2023, the Director of the Agency shall submit a

 

 

SB1433- 21 -LRB099 08966 MGM 29139 b

1report to the General Assembly describing the results of the
2carpet stewardship program on a statewide basis. The report
3shall also contain recommendations whether the program should
4be made permanent and any modifications to improve its function
5and efficiency.
 
6    Section 99. Effective date. This Act takes effect January
71, 2016.