104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4064

 

Introduced 5/21/2025, by Rep. Maurice A. West, II

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.1030 new
30 ILCS 105/5.1031 new

    Creates the Extended Producer Responsibility and Recycling Refund Act. Defines terms. Provides for the registration of producer responsibility organizations and service providers. Provides for the duties of a packaging producer responsibility organization and a recycling refund producer responsibility organization. Establishes advisory boards. Provides for responsibilities of packaging producers. Provides for restrictions on introduction and sales of covered materials and covered beverage containers. Provides for requirements for service providers. Provides for responsibilities for the Environmental Protection Agency. Provides for requirements for packaging program needs assessments; a packaging producer program plan; and a recycling refund program plan. Provides for procedures for plan and amendment review and approval. Provides for requirements for a coordination plan; performance targets; producer fees; a website; an applicable refund value for covered beverage containers; a convenience standard for redemption of containers; and a redemption system. Provides that any deposits that are not returned to the consumer must only be used by the recycling refund producer organization for specified purposes. Provides for requirements for a refund value to drop-off facilities and material recovery facilities. Requires reporting, including by a packaging producer responsibility organization, a recycling refund producer responsibility organization, the Environmental Protection Agency, and materials recovery facilities and drop-off facilities. Provides for immunity from liability for antitrust, restraint of trade, and unfair trade practices. Requires rulemaking by the Agency. Provides for enforcement by the Agency and penalties. Creates the Packaging Producer Responsibility Program Fund with a continuing appropriation to the Agency and the Recycling Refund Program Fund with a continuing appropriation to the Agency. Makes conforming changes to the State Finance Act.


LRB104 13702 WRO 26387 b

 

 

A BILL FOR

 

HB4064LRB104 13702 WRO 26387 b

1    AN ACT concerning safety.
 
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
5Extended Producer Responsibility and Recycling Refund Act.
 
6    Section 5. Definitions. As used in this Act, unless the
7context requires otherwise:
8    "Agency" means the Illinois Environmental Protection
9Agency.
10    "Applicable refund value" means the applicable refund
11value established under this Act.
12    "Beverage" means a drinkable liquid intended for human
13oral consumption. "Beverage" does not include: (1) a drug
14regulated under the Federal Food, Drug, and Cosmetic Act, 21
15U.S.C. 301 et seq.; (2) 100% fluid milk; (3) infant formula; or
16(4) a meal replacement liquid.
17    "Beverage container" means any prepackaged container for
18beverages.
19    "Beverage container collection mechanism" means any manual
20or technological means by which empty covered beverage
21containers are properly identified as part of processing a
22consumer's refund.
23    "Brand" means a name, symbol, word, or mark that

 

 

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1identifies a product and attributes the product and its
2components, including packaging, to the brand owner.
3    "Brand owner" means a person that owns or licenses a brand
4or that otherwise has rights to market a product under the
5brand, whether or not the brand's trademark is registered.
6    "Canner" means an individual who collects and redeems
7covered beverage containers for critical income.
8    "Centralized processing facilities" means a facility that
9sorts and then bales or aggregates covered beverage containers
10and associated materials for the purpose of recycling.
11    "Collection rate" means the amount of a covered material
12by covered materials type collected by service providers and
13transported for recycling or composting divided by the total
14amount of the type of a covered material by covered materials
15type sold or distributed into the State by the relevant unit of
16measurement in the approved program plan.
17    "Compostable material" means a covered material that:
18        (1) meets, and is labeled to reflect that it meets,
19    the American Society for Testing and Materials Standard
20    Specification for Labeling of Plastics Designed to be
21    Aerobically Composted in Municipal or Industrial
22    Facilities (D6400) or its successor;
23        (2) meets, and is labeled to reflect that it meets,
24    the American Society for Testing and Materials Standard
25    Specification for Labeling of End Items that Incorporate
26    Plastics and Polymers as Coatings or Additives with Paper

 

 

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1    and Other Substrates Designed to be Aerobically Composted
2    in Municipal or Industrial Facilities (D6868) or its
3    successor;
4        (3) is composed of only wood without any coatings or
5    additives; or
6        (4) is composed of only paper without any coatings or
7    additives.
8    "Composting" means the controlled microbial degradation of
9source-separated compostable materials to yield a humus-like
10product.
11    "Composting rate" means the amount of compostable covered
12material that is managed through composting, divided by the
13total amount of compostable covered material sold or
14distributed into the State by the relevant unit of measurement
15in the approved program plan.
16    "Coordination plan" means the joint plan developed by the
17packaging program producer responsibility organization and the
18recycling refund producer responsibility organization.
19    "Covered beverage container" means any beverage container
20subject to a recycling refund.
21    "Covered entity" means a person or location that receives
22covered services for covered materials in accordance with the
23requirements of this Act, including:
24        (1) a single-family residence;
25        (2) a multifamily residence;
26        (3) a public or private elementary or secondary

 

 

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1    school;
2        (4) a nonprofit corporation with annual revenue of
3    less than $35,000,000; and
4        (5) a State agency, political subdivision, public
5    area, public entity or other governmental unit.
6    "Covered material" means packaging and paper products sold
7or supplied in the State. "Covered material" does not include
8exempt materials.
9    "Covered materials type" means paper, plastic, metal,
10glass, or any other specific type of covered material that:
11        (1) can be categorized based on distinguishing
12    chemical or physical properties, including properties that
13    allow a covered materials type to be aggregated into a
14    discrete commodity category for purposes of reuse,
15    recycling, or composting; and
16        (2) is based on similar uses in the form of a product
17    or package.
18    "Covered services" means collecting, transferring,
19transporting, sorting, processing, recovering, preparing, or
20otherwise managing for purposes of source reduction, reuse,
21recycling, or composting.
22    "De minimis producer" means a person that in the most
23recent fiscal year:
24        (1) introduced less than one ton of covered material
25    into this State; or
26        (2) earned global gross revenues of less than

 

 

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1    $2,000,000.
2    "Drop-off facilities" means a specific area where
3individuals may bring household recyclable materials to be
4sorted into material-specific receptacles and is located in
5the State.
6    "Environmental impact" means the impact of a covered
7material on human health and the environment from extraction
8and processing of the raw materials composing the covered
9material through manufacturing; distribution; use; recovery
10for reuse, recycling, or composting; and final disposal.
11    "Environmental justice area" means a census block group
12with a low-income or minority population greater than twice
13the statewide average.
14    "Executive director" means the executive director of the
15packaging producer responsibility organization or recycling
16refund producer responsibility organization.
17    "Exempt materials" means materials, or any portion of
18materials, that are:
19        (1) packaging for infant formula, as defined in 21
20    U.S.C. 321(z);
21        (2) packaging for medical food, as defined in 21
22    U.S.C. 360ee(b)(3);
23        (3) packaging for a fortified oral nutritional
24    supplement used by persons who require supplemental or
25    sole source nutrition to meet nutritional needs due to
26    special dietary needs directly related to cancer, chronic

 

 

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1    kidney disease, diabetes, malnutrition, or failure to
2    thrive, as those terms are defined by the International
3    Classification of Diseases, Tenth Revision;
4        (4) packaging for a product regulated as a drug or
5    medical device by the United States Food and Drug
6    Administration, including associated components and
7    consumable medical equipment;
8        (5) packaging for a medical equipment or product used
9    in medical settings that is regulated by the United States
10    Food and Drug Administration, including associated
11    components and consumable medical equipment;
12        (6) drugs, biological products, parasiticides, medical
13    devices, or in vitro diagnostics that are used to treat,
14    or that are administered to, animals and are regulated by
15    the United States Food and Drug Administration under the
16    federal Food, Drug, and Cosmetic Act, 21 U.S.C. 301 et
17    seq., or by the United States Department of Agriculture
18    under the federal Virus-Serum-Toxin Act, 21 U.S.C. 151 et
19    seq.;
20        (7) packaging for products regulated by the United
21    States Environmental Protection Agency under the federal
22    Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. 136
23    et seq.;
24        (8) packaging used to contain liquefied petroleum gas
25    and are designed to be refilled;
26        (9) paper products used for a newspaper's print

 

 

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1    publications, including supplements or enclosures, that
2    include content derived from primary sources related to
3    news and current events;
4        (10) paper products used for a magazine's print
5    publication that has a circulation of less than 95,000 and
6    that primarily includes content derived from primary
7    sources related to news and current events;
8        (11) packaging used to contain hazardous or flammable
9    products regulated by the 2012 federal Occupational Safety
10    and Health Administration Hazard Communication Standard,
11    29 CFR 1910.1200, that prevent the packaging from being
12    source reduced or made reusable, recyclable, or
13    compostable, as determined by the Agency;
14        (12) packaging that is being collected and properly
15    managed through a paint producer responsibility program
16    approved by the Agency;
17        (13) exempt materials under this Act, as determined by
18    the Agency; or
19        (14) covered materials that:
20            (A) a producer distributes to another producer;
21            (B) are subsequently used to contain a product,
22        and the product is distributed to a commercial or
23        business entity for the production of another product;
24        and
25            (C) are not introduced to a person other than the
26        commercial or business entity that first received the

 

 

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1        product used for the production of another product.
2    "Express redemption site" means a designated return point
3that allows consumers to return covered beverage containers,
4and that do not require cash handling on-site; rather, upon
5return, beverage containers are transported to centralized
6processing facilities, and refunds are credited to the
7consumer's virtual account. "Express redemption site" includes
8bag-drop systems, reverse vending machines, or other beverage
9container collection mechanisms to enhance convenience and
10accessibility for consumers.
11    "Full-service redemption site" means a return point where
12individuals may return covered beverage containers to receive
13immediate refunds for their returns.
14    "Independent auditor" means an independent certified
15public accountant with an active license that is:
16        (1) retained by a producer responsibility
17    organization;
18        (2) not otherwise employed by or affiliated with a
19    producer responsibility organization; and
20        (3) qualified to conduct an audit under State law.
21    "Infrastructure investment" means an investment by a
22packaging producer responsibility organization that funds:
23        (1) equipment or facilities in which covered materials
24    are prepared for reuse, recycling, or composting;
25        (2) equipment or facilities used for source reduction,
26    reuse, recycling, or composting of covered materials; or

 

 

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1        (3) the expansion or strengthening of demand for and
2    use of covered materials by responsible markets in the
3    State or region.
4    "Introduce" means to sell, offer for sale, distribute, or
5use to ship a product within or into this State.
6    "Living wage" means the minimum hourly wage necessary to
7allow a person working 40 hours per week to afford basic needs.
8    "Lobby" or "lobbying" means the practice of promoting,
9opposing, or in any manner influencing or attempting to
10influence the introduction, defeat, or enactment of
11legislation before any legislative body; opposing or in any
12manner influencing the executive approval, veto, or amendment
13of legislation; or the practice of promoting, opposing, or in
14any manner influencing or attempting to influence the
15enactment, promulgation, modification, or deletion of
16regulations before any regulatory body. The term does not
17include providing public testimony before a legislative body
18or regulatory body or any committee of a legislative or
19regulatory body.
20    "Local government" means a county, city, or town,
21including any municipal corporation, quasi-municipal
22corporation, or special purpose district, or any office,
23department, division, bureau, board, commission, or agency
24thereof, or other local public agency.
25    "Low-income" means a household at or below 80% of the
26median income level for a given county as determined annually

 

 

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1by the U.S. Department of Housing and Urban Development.
2    "Material recovery facility" means a facility in the State
3that collects, compacts, repackages, sorts, or processes for
4transport source-separated material for the purpose of
5recycling.
6    "Minority" means a person who is any of the following:
7        (1) American Indian or Alaska Native (a person having
8    origins in any of the original peoples of North and South
9    America, including Central America, and who maintains
10    tribal affiliation or community attachment).
11        (2) Asian (a person having origins in any of the
12    original peoples of the Far East, Southeast Asia, or the
13    Indian subcontinent, including, but not limited to,
14    Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
15    the Philippine Islands, Thailand, and Vietnam).
16        (3) Black or African American (a person having origins
17    in any of the black racial groups of Africa).
18        (4) Hispanic or Latino (a person of Cuban, Mexican,
19    Puerto Rican, South or Central American, or other Spanish
20    culture or origin, regardless of race).
21        (5) Native Hawaiian or Other Pacific Islander (a
22    person having origins in any of the original peoples of
23    Hawaii, Guam, Samoa, or other Pacific Islands).
24    "Needs assessment" means the most recently completed needs
25assessment conducted under this Act.
26    "Packaging" means a material type, such as paper, plastic,

 

 

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1glass, metal, or multi-material, that is used to protect,
2contain, transport, or serve a product.
3    "Packaging manufacturer" means any person, firm,
4association, partnership, or corporation that produces
5packaging or a packaging component of covered beverage
6containers.
7    "Packaging producer program plan" means a program plan
8developed by the packaging producer responsibility
9organization that is prepared and submitted to the Agency for
10review and approval.
11    "Packaging producer responsibility organization" means a
12nonprofit corporation that is tax-exempt under Section
13501(c)(3) of the federal Internal Revenue Code and that is
14created by a group of producers to implement the non-recycling
15refund activities under this Act.
16    "Packaging program" means a program where producers of
17covered materials not in the recycling refund program pay a
18fee to meet certain performance targets.
19    "Packaging program advisory board" means the packaging
20program advisory board established under this Act.
21    "Paper product" means a product made primarily from wood
22pulp or other cellulosic fibers but does not include bound
23books or products that recycling or composting facilities will
24not accept because of the unsafe or unsanitary nature of the
25paper product. "Paper product" does not include exempt
26materials.

 

 

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1     "Postconsumer recycled content" means the amount of
2postconsumer material used by a producer in the production of
3a covered materials type, divided by the total amount of that
4covered materials type used for products sold or distributed
5by the producer in that same calendar year.
6    "Producer" means the following person responsible for
7compliance with requirements under this Act for an item sold,
8offered for sale, or distributed in or into this State:
9        (1) for an item sold in or with packaging at a physical
10    retail location in this State:
11            (A) if the item is sold in or with packaging that
12        includes a brand, the producer is the brand owner;
13            (B) if there is no person or entity described in
14        subparagraph (A) of this paragraph (1), the producer
15        is the person or entity that is licensed to sell, offer
16        for sale, or distribute to consumers in the State an
17        item under the brand or trademark used in a commercial
18        enterprise, sold, offered for sale, or distributed in
19        or into this State, whether or not the trademark is
20        registered in this State;
21            (C) if there is no person to which subparagraph
22        (A) or (B) of this paragraph (1) applies, the producer
23        is the person that is licensed to manufacture and sell
24        or offer for sale to consumers in this State an item
25        under the brand or trademark of another manufacturer
26        or person;

 

 

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1            (D) if there is no person described in
2        subparagraph (A), (B), or (C) of this paragraph (1)
3        within the United States, the producer is the person
4        who is the importer of record for the item into the
5        United States for use in a commercial enterprise that
6        sells, offers for sale, or distributes the item in
7        this State; or
8            (E) if there is no person described in
9        subparagraph (A), (B), (C), or (D) of this paragraph
10        (1), the producer is the person that first distributes
11        the item in or into this State;
12        (2) for items sold or distributed in or into this
13    State via ecommerce, remote sale, or remote distribution:
14            (A) for packaging used to directly protect or
15        contain the item, the producer of the packaging is the
16        same as the producer identified under paragraph (1);
17        and
18            (B) for packaging used to ship the item to a
19        consumer, the producer of the packaging is the person
20        that packages the item to be shipped to the consumer;
21        (3) for packaging that is an item and is not included
22    in paragraphs (1) and (2), the producer of the packaging
23    is the person that first distributes the item in or into
24    this State;
25        (4) a person is the producer of an item or covered
26    product sold, offered for sale, or distributed in or into

 

 

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1    this State, as defined in paragraphs (1) through (3),
2    except where a private label producer has mutually agreed
3    with a brand owner to accept responsibility as the
4    producer, and the private label producer has joined a
5    registered producer responsibility organization as the
6    responsible producer for that item; if a private label
7    producer accepts responsibility as the producer, the brand
8    owner must provide written certification of that
9    contractual agreement to the producer responsibility
10    organization; and
11        (5) if the producer described in paragraphs (1)
12    through (4) is a business operated wholly or in part as a
13    franchise, the producer is the franchisor, if that
14    franchisor has franchisees that have a commercial presence
15    within the State.
16    "Producer" does not include:
17        (1) government entities; or
18        (2) registered 501(c)(3) charitable organizations and
19    501(c)(4) social welfare organizations.
20    "Producer responsibility organization" means an
21organization set up to carry out the responsibilities of
22either the packaging program or the recycling refund program,
23or both programs.
24    "Recycling" means any process by which materials are
25collected, separated or processed and returned to the economic
26mainstream in the form of raw materials or products.

 

 

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1"Recycling" does not include:
2        (1) landfill disposal of packaging or paper products
3    or the residue resulting from the processing of packaging
4    or product products at a materials recovery facility;
5        (2) use as alternative daily cover or any other
6    beneficial use at a landfill, incinerator, energy recovery
7    facility, or energy generation facility by means of
8    combustion; or
9        (3) final conversion of packaging and paper products
10    or their components and by-products to a fuel.
11    "Recycling rate" means the amount of recyclable covered
12material, in aggregate or by individual covered materials
13type, recycled in a calendar year divided by the total amount
14of recyclable covered material, in aggregate or by individual
15covered materials type, sold or distributed into the State by
16the relevant unit of measurement in the approved program plan.
17    "Recycling refund" means a covered beverage container
18redemption program that pays a per-unit refund value to
19persons for covered beverage containers and collects and
20processes covered beverage containers as described in this
21Act.
22    "Recycling refund advisory board" means the recycling
23refund advisory board established under this Act.
24    "Recycling refund processing facility" means a location
25that is designated by the recycling refund producer
26responsibility organization to receive, sort, and prepare

 

 

HB4064- 16 -LRB104 13702 WRO 26387 b

1beverage containers collected through the system for recycling
2or reuse.
3    "Recycling refund producer responsibility organization"
4means a nonprofit corporation that is tax-exempt under Section
5501(c)(3) of the federal Internal Revenue Code created by a
6group of recycling refund covered beverage containers
7producers to implement activities under this Act.
8    "Recycling refund program plan" means a program plan
9developed by the recycling refund producer responsibility
10organization that is prepared and submitted to the Agency for
11review and approval.
12    "Redemption rate" means the number of covered beverage
13containers redeemed for the recycling refund divided by the
14number of covered beverage containers sold in the State in a
15calendar year. Covered beverage containers transferred by
16material recovery facilities to additional materials
17processing or end-markets are not included in the calculation
18of covered beverage containers redeemed for the recycling
19refund.
20    "Redemption site" means a public or private place that
21provides the ability to redeem a covered beverage container
22for which a deposit was paid.
23    "Responsible market" means a materials market that:
24        (1) reuses, recycles, composts, or otherwise recovers
25    materials and disposes of contaminants in a manner that
26    protects the environment and minimizes risks to public

 

 

HB4064- 17 -LRB104 13702 WRO 26387 b

1    health and worker health and safety;
2        (2) complies with all applicable federal, State, and
3    local statutes, rules, ordinances, and other laws
4    governing environmental, health, safety, and financial
5    responsibility;
6        (3) possesses all requisite licenses and permits
7    required by a federal or State agency or political
8    subdivision;
9        (4) if the market operates in the State, manages waste
10    according to the waste management goal and priority order
11    of waste management practices stated in statute; and
12        (5) minimizes adverse impacts to environmental justice
13    areas.
14    "Retail establishment" means any person, corporation,
15partnership, business, facility, vendor, organization, or
16individual that sells or provides merchandise, goods, or
17materials directly to a consumer that engages in the sale of
18beverages that are covered beverage containers and are
19intended for consumption off-site.
20    "Return rate" means the amount of reusable covered
21material, in aggregate or by individual covered materials
22type, collected for reuse by a producer or service provider in
23a calendar year, divided by the total amount of reusable
24covered material, in aggregate or by individual covered
25materials type, sold or distributed into the State by the
26relevant unit of measurement in the approved program plan.

 

 

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1    "Reusable" means capable of reuse.
2    "Reuse" means the return of a covered material to the
3marketplace and the continued use of the covered material by a
4producer or service provider when the covered material is:
5        (1) intentionally designed and marketed to be used
6    multiple times for its original intended purpose without a
7    change in form;
8        (2) designed for durability and maintenance to extend
9    its useful life and reduce demand for new production of
10    the covered material;
11        (3) supported by adequate logistics and infrastructure
12    at a retail location, by a service provider, or on behalf
13    of or by a producer, that provides convenient access for
14    consumers; and
15        (4) compliant with all applicable federal, State, and
16    local statutes, rules, ordinances, and other laws
17    governing health and safety.
18    "Reuse rate" means the share of units of a reusable
19covered material sold or distributed into the State in a
20calendar year that are demonstrated and deemed reusable in
21accordance with an approved producer responsibility plan.
22    "Service provider" means an entity that provides covered
23services for covered materials. "Service provider" includes a
24political subdivision that provides or that contracts or
25otherwise arranges with another party to provide covered
26services for covered materials within its jurisdiction,

 

 

HB4064- 19 -LRB104 13702 WRO 26387 b

1regardless of whether it provided, contracted for, or
2otherwise arranged for similar services before the approval of
3the applicable producer responsibility plan.
4    "Source reduction" means the design, manufacture,
5acquisition, purchase, or use of materials or products to
6reduce the amount of municipal waste before it enters the
7municipal waste stream. This may be accomplished through the
8redesign of manufacturing processes; redesign of products;
9changes in consumers' purchasing decisions, use, and disposal
10habits; and backyard composting.
11    "Third-party certification" means certification by an
12accredited independent organization that a standard or process
13required by this Act, or by a packaging producer program plan
14or a recycling refund program plan approved under this Act,
15has been achieved.
 
16    Section 10. Registration of producer responsibility
17organizations and service providers.
18    (a) The annual registration of producer responsibility
19organizations and service providers shall be as follows:
20        (1) By April 1, 2026, producers must appoint:
21            (A) a packaging producer responsibility
22        organization and a recycling refund producer
23        responsibility organization, or
24            (B) a single producer responsibility organization
25        with (i) governance to separately implement the

 

 

HB4064- 20 -LRB104 13702 WRO 26387 b

1        packaging producer program plan and the recycling
2        refund program plan in a coordinated manner, and (ii)
3        all the responsibilities under this Act of the
4        packaging producer responsibility organization and the
5        recycling refund producer responsibility organization.
6        (2) Both the packaging producer responsibility
7    organization and the recycling refund producer
8    responsibility organization, or the single producer
9    responsibility organization, must register with the Agency
10    by July 1, 2026, and each July 1 thereafter, by submitting
11    the following:
12            (A) contact information for a person responsible
13        for implementing an approved program plan;
14            (B) a list of all member producers that have
15        entered into written agreements to operate under an
16        approved program plan administered by a registered
17        producer responsibility organization and, for each
18        producer, a list of all brands of the producer's
19        covered materials introduced;
20            (C) a list of current board members and the
21        executive director if different from the person
22        responsible for implementing an approved program plan;
23        and
24            (D) documentation demonstrating adequate financial
25        responsibility and financial controls to ensure proper
26        management of funds and payment of the registration

 

 

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1        fee required under this Section.
2    (b) The registration fee for producer responsibility
3organizations and service providers shall be as follows:
4        (1) By November 1, 2026, a packaging producer
5    responsibility organization and a recycling refund
6    producer responsibility organization must submit a
7    one-time payment to the Agency, in lieu of a 2027
8    registration fee, in an amount determined by the Agency
9    and communicated to each producer responsibility
10    organization at least 60 days prior to the deadline for
11    this initial payment, to cover the previously incurred
12    costs and future estimated costs of the Agency under this
13    Act from the effective date of this Act through the paying
14    of the annual registration fee required in paragraph (2).
15        (2) Beginning January 1, 2028, as part of its annual
16    registration with the Agency, a packaging producer
17    responsibility organization and recycling refund producer
18    responsibility organization must submit to the Agency a
19    registration fee, as determined by the Agency. By
20    September 1, 2027, and each September 1 thereafter, the
21    Agency must provide written notice to registered producer
22    responsibility organizations in writing of the amount of
23    the registration fee. If there are 2 or more producer
24    responsibility organizations implementing the recycling
25    refund program plan or the packaging producer program
26    plan, the coordinating body described in this Section must

 

 

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1    equitably apportion payment of the registration fee
2    between all registered producer responsibility
3    organizations managing either program. The registration
4    fee must be set at an amount anticipated to in the
5    aggregate meet but not exceed the Agency's estimate of the
6    costs required to perform the Agency's duties as described
7    in this Act and to otherwise administer, implement, and
8    enforce this Act for the 12 months after the registration
9    date.
10        (3) The Agency must annually reconcile the fees paid
11    by a producer responsibility organization under this
12    subdivision with the actual costs incurred by the agency
13    by means of credits or refunds to or additional payments
14    required of a producer responsibility organization, as
15    applicable.
16    (c) After the first packaging producer responsibility plan
17approved by the agency expires, the Agency may allow
18registration of more than one packaging producer
19responsibility organization if:
20        (1) producers of a covered materials type or a
21    specific covered material appoint a packaging producer
22    responsibility organization; or
23        (2) producers organize under additional packaging
24    producer responsibility organizations.
25    (d) All fees received under this Section must be deposited
26in the Product Producer Responsibility Program Fund under this

 

 

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1Act.
 
2    Section 15. Packaging producer responsibility organization
3duties. A packaging producer responsibility organization must:
4        (1) register with the Agency and pay the required fees
5    to the Agency, as provided under this Act;
6        (2) submit a producer responsibility plan to the
7    Agency as required under this Act;
8        (3) implement producer responsibility plans as
9    required under this Act;
10        (4) forward upon receipt from the Agency the lists
11    established under this Act to all service providers that
12    participate in a packaging producer responsibility plan
13    administered by the packaging producer responsibility
14    organization;
15        (5) establish, by September 1, 2026, an initial
16    producer fee structure to fund the initial implementation
17    of the program, to be used until the packaging producer
18    responsibility organization has an approved program plan
19    as required under this Act;
20        (6) collect producer fees;
21        (7) submit the reports required under this Act;
22        (8) ensure that producers operating under a packaging
23    producer responsibility plan administered by the packaging
24    producer responsibility organization comply with the
25    requirements of the packaging producer responsibility plan

 

 

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1    and with this Act;
2        (9) expel a producer from the packaging producer
3    responsibility organization if efforts to return the
4    producer to compliance with the plan or with the
5    requirements of this Act are unsuccessful;
6        (10) notify the Agency when a producer has been
7    expelled;
8        (11) consider and respond within 90 days in writing to
9    comments received from an advisory board, including
10    justifications for not incorporating advisory board
11    recommendations;
12        (12) maintain a website with the information required
13    under this Act;
14        (13) notify the Agency within 30 days of a change made
15    to the contact information for a person responsible for
16    implementing the packaging producer responsibility plan,
17    to board membership, or to the executive director;
18        (14) assist service providers to identify and use
19    responsible markets;
20        (15) contract directly with service providers and
21    provide payments in a timely manner; and
22        (16) comply with all other applicable requirements of
23    this Act.
 
24    Section 20. Recycling refund producer responsibility
25organization duties. A recycling refund producer

 

 

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1responsibility organization must:
2        (1) register with the Agency;
3        (2) submit a recycling refund producer plan;
4        (3) implement recycling refund producer plans;
5        (4) collect producer fees;
6        (5) establish, by September 1, 2026, an initial
7    producer fee structure to fund the initial implementation
8    of the program, to be used until the recycling refund
9    producer responsibility organization has an approved
10    program plan as required under this Act;
11        (6) submit the reports required under this Act;
12        (7) ensure that producers operating under a recycling
13    refund program plan administered by the recycling refund
14    producer responsibility organization comply with the
15    requirements of the recycling refund program plan and with
16    this Act;
17        (8) expel a producer from the recycling refund
18    producer responsibility organization if efforts to return
19    the producer to compliance with the plan or with the
20    requirements of this Act are unsuccessful;
21        (9) notify the Agency when a producer has been
22    expelled;
23        (10) consider and respond within 90 days in writing to
24    comments received from an advisory board, including
25    justifications for not incorporating board
26    recommendations;

 

 

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1        (11) maintain a website with the information required
2    under this Act;
3        (12) notify the Agency within 30 days of a change made
4    to the contact information for a person responsible for
5    implementing the recycling refund producer responsibility
6    plan, to board membership, or to the executive director;
7        (13) contract directly with service providers and
8    provide payments in a timely manner; and
9        (14) comply with all other applicable requirements of
10    this Act.
 
11    Section 25. Advisory boards.
12    (a) The advisory boards are established as follows:
13        (1) The packaging program advisory board is
14    established to review all activities conducted by
15    packaging producer responsibility organizations under this
16    Act and to advise the Agency and packaging producer
17    responsibility organizations regarding the implementation
18    of this Act.
19        (2) The recycling refund advisory board is established
20    to review all activities conducted by recycling refund
21    producer responsibility organizations under this Act and
22    to advise the Agency and recycling refund producer
23    responsibility organizations regarding the implementation
24    of this Act.
25    (b) The duties of the advisory boards are as follows:

 

 

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1        (1) The packaging program advisory board shall:
2            (A) convene its initial meeting by January 1,
3        2027;
4            (B) consult with the Agency regarding the scope of
5        the needs assessments and provide written comments on
6        needs assessments;
7            (C) advise on the development of packaging
8        producer responsibility plans and amendments to
9        packaging producer responsibility plans;
10            (D) submit comments to packaging producer
11        responsibility organizations and to the Agency on any
12        matter relevant to the administration of this Act;
13            (E) provide written comments to the Agency during
14        any rulemaking process undertaken by the Agency; and
15            (F) comply with all other applicable requirements
16        of this Act.
17        (2) The recycling refund advisory board shall:
18            (A) convene its initial meeting by January 1,
19        2027;
20            (B) review the recycling refund program plan and
21        provide comments to the recycling refund producer
22        responsibility organization, prior to the draft being
23        issued as an official draft for public comment;
24            (C) review program reports and audits and raise
25        issues for recycling refund producer responsibility
26        organization follow-up or agency enforcement action;

 

 

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1            (D) review annual reports and provide comments to
2        the Agency; and
3            (E) ensure that the recycling refund producer
4        responsibility organization and Agency are considering
5        a broad range of perspectives in developing recycling
6        refund program plans and in implementing programs.
7    (c) The membership of the advisory boards are as follows:
8        (1) By August 1, 2026, the Director of the Agency must
9    establish and appoint the initial membership of the
10    packaging program advisory board. The membership of the
11    packaging program advisory board must consist of the
12    following:
13            (A) 2 members representing manufacturers of
14        covered materials or a statewide or national trade
15        association representing those manufacturers;
16            (B) 2 members representing recycling facilities
17        that manage covered materials;
18            (C) one member representing a waste hauler or a
19        statewide association representing waste haulers;
20            (D) one member representing retailers of covered
21        materials or a statewide trade association
22        representing those retailers;
23            (E) one member representing a statewide nonprofit
24        environmental organization;
25            (F) one member representing a community-based
26        nonprofit environmental justice organization;

 

 

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1            (G) one member representing a waste facility that
2        receives and sorts covered materials and transfers
3        them to another facility for reuse, recycling, or
4        composting;
5            (H) one member representing a waste facility that
6        receives compostable materials for composting or a
7        statewide trade association that represents such
8        facilities;
9            (I) 2 members representing an entity that develops
10        or offers for sale covered materials that are designed
11        for reuse or refill and maintained through a reuse or
12        refill system or infrastructure or a statewide or
13        national trade association that represents such
14        entities;
15            (J) 3 members representing organizations of
16        political subdivisions, with at least one member
17        representing a political subdivision outside the
18        metropolitan area;
19            (K) 2 members representing other interested
20        parties or additional members of interests under this
21        paragraph (1) as determined by the Agency; and
22            (L) one member representing the Agency.
23        (2) By August 1, 2026, the Director of the Agency must
24    establish and appoint the initial membership of the
25    recycling refund advisory board. The membership of the
26    recycling refund advisory board must consist of

 

 

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1    representatives of the following:
2            (A) one member representing local government;
3            (B) one member representing a retailer that offers
4        collection opportunities;
5            (C) one member representing a packaging
6        manufacturer that is not a producer;
7            (D) one member representing a processor;
8            (E) one member representing an environmental
9        nonprofit organization;
10            (F) one member representing an environmental
11        justice organization or organization that represents
12        individual collectors;
13            (G) one member who is a canner or represents a
14        canner organization; and
15            (H) 2 members representing other interested
16        parties or additional members of interests represented
17        under this paragraph (2) as determined by the Agency.
18        (3) In making appointments under this Section, the
19    Agency:
20            (A) may not appoint members who are members of the
21        General Assembly or registered lobbyists;
22            (B) may not appoint members who are employees of a
23        producer required to be members of a producer
24        responsibility organization in this State under this
25        Act; and
26            (C) must endeavor to appoint members from all

 

 

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1        regions of the State.
2        (4) A chair shall be elected by majority vote of
3    present members at the first meeting of each year at which
4    a quorum is present.
5    (d) Members serve for a term of 4 years, except that the
6initial term for a majority of the initial appointees must be 2
7years so that membership terms are staggered. Members may be
8reappointed but may not serve more than 8 consecutive years. A
9member of an advisory board appointed to represent the Agency
10serves at the pleasure of the Agency. The chair shall be
11elected from among the members by a majority of its members.
12    (e) The presence of a majority of appointed advisory board
13members constitutes a quorum. Action by an advisory board
14requires a quorum and a majority of those present and voting.
15All members of an advisory board, except a member of an
16advisory board appointed to represent the Agency, are voting
17members of the board.
18    (f) Each advisory board must meet at least 2 times per year
19and may meet more frequently upon 10 days' written notice at
20the request of the chair or a majority of its members.
21    (g) The Agency must provide administrative and operating
22support to each advisory board, and the Agency may contract
23with a third-party facilitator to assist in administering the
24activities of each advisory board, including establishing a
25website or landing page on the Agency website.
26    (h) An advisory board member must disclose any instance of

 

 

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1actual or perceived conflicts of interest at each meeting of
2the advisory board at which recommendations regarding producer
3responsibility plans, programs, operations, or activities are
4made by an advisory board.
 
5    Section 30. Packaging producer responsibilities.
6    (a) Beginning August 1, 2026, a producer must be a member
7of one or more of the following for the covered materials it
8produces:
9        (1) a packaging producer responsibility organization;
10        (2) a recycling refund producer responsibility
11    organization registered in this State; or
12        (3) the single producer responsibility organization
13    managing the packaging program and recycling refund
14    program.
15    (b) A producer must:
16        (1) implement the requirements of the packaging
17    producer responsibility plan and recycling refund producer
18    responsibility plan under which the producer operates;
19        (2) pay producer fees under this Act;
20        (3) provide necessary information for covered
21    materials to the packaging producer responsibility
22    organization and the recycling refund producer
23    responsibility organization at a frequency to be
24    determined by the producer responsibility organization;
25    and

 

 

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1        (4) comply with all other applicable requirements of
2    this Act.
 
3    Section 35. Introduction and sales restrictions.
4    (a) Packaging producer restrictions are as follows:
5        (1) Beginning January 1, 2030, no producer may sell in
6    the State covered materials, either separately or when
7    used to package another product, unless the producer
8    enters into a written agreement with a packaging producer
9    responsibility organization to operate under an approved
10    packaging producer responsibility plan.
11        (2) Beginning January 1, 2033, no producer may sell in
12    the State covered materials unless covered services are
13    provided for the covered materials through a program in a
14    packaging producer responsibility plan approved by the
15    Agency, and the covered materials are:
16            (1) reusable and capable of being managed through
17        a reuse system that meets the reuse rate and return
18        rate required under this Act;
19            (2) included on the recyclable covered materials
20        list established under this Act; or
21            (3) included on the compostable covered material
22        list established under this Act.
23        (3) A packaging producer responsibility organization
24    may petition the Agency for a 2-year extension to comply
25    with the requirements of paragraph (2). The Agency may

 

 

HB4064- 34 -LRB104 13702 WRO 26387 b

1    approve the extension if the petition demonstrates that
2    market or technical issues prevent a specific covered
3    material from being considered reusable or included on the
4    lists established under this Act. The packaging producer
5    responsibility organization may petition the Agency for
6    additional annual extensions if the packaging producer
7    responsibility organization demonstrates that market or
8    technical issues preventing compliance persist.
9    (b) A person may not sell or distribute in or into the
10State a covered beverage container of a producer that is not
11participating in a recycling refund producer responsibility
12organization or that is not in compliance with the
13requirements of this Act or rules adopted under this Act.
 
14    Section 40. Service providers.
15    (a) A packaging producer responsibility organization or a
16recycling refund producer responsibility organization must
17require in a contract with a service provider that the service
18provider:
19        (1) meet performance standards established in an
20    approved producer responsibility plan under this Act;
21        (2) ensure that covered materials are sent to
22    responsible markets; and
23        (3) provide documentation to the recycling refund
24    producer responsibility organization and packaging
25    producer responsibility organization on the amounts,

 

 

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1    covered materials types, and volumes of covered materials
2    by covered service method.
3    (b) Bidding processes and ownership ability requirements
4are as follows:
5        (1) For infrastructure investments included in an
6    approved packaging producer responsibility plan, a
7    packaging producer responsibility organization or a
8    recycling refund producer responsibility organization must
9    use the competitive bidding processes and publicly post
10    bid opportunities, except that preference must be given to
11    existing facilities, providers of services, and holders of
12    service accounts in the State for source reduction, reuse,
13    collection, recycling, and composting of covered
14    materials.
15        (2) No packaging producer responsibility organization
16    or recycling refund producer responsibility organization
17    may own or partially own infrastructure that is used to
18    fulfill obligations under this Act, except in the
19    following circumstances:
20            (A) a producer may hold an ownership stake in
21        infrastructure used to fulfill obligations under this
22        Act so long as the stake was held before enactment of
23        this Act and the ownership stake is fully disclosed by
24        the producer to the packaging producer responsibility
25        organization; or
26            (B) after a bidding process described in paragraph

 

 

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1        (1) under which no service provider bids on the
2        contract, the packaging producer responsibility
3        organization or the recycling refund producer
4        responsibility organization may make infrastructure
5        investments identified under an approved packaging
6        producer responsibility plan or recycling refund
7        program plan to implement the requirements in this
8        Act.
9    (c) Contracting rate requirements are as follows:
10        (1) The packaging producer responsibility organization
11    shall directly contract to pay 100% of covered services
12    for covered materials, exclusive of exempt materials. The
13    methodology for contract rates must consider estimated
14    revenue received by service providers from the sale of
15    covered materials based upon relevant material indices and
16    incorporate relevant cost information identified by the
17    needs assessment. Contract rates must be annually updated
18    and reflect the net costs for covered services for covered
19    materials from covered entities, at a minimum.
20        (2) Contract rates must be based on the following, as
21    applicable by the service provided:
22            (A) the cost to collect covered material for
23        recycling, a proportional share of composting, or
24        reuse adjusted to reflect conditions that affect those
25        costs, varied by region or jurisdiction in which the
26        covered services are provided, including, but not

 

 

HB4064- 37 -LRB104 13702 WRO 26387 b

1        limited to:
2                (i) the number and type of covered entities;
3                (ii) the population density;
4                (iii) the collections methods employed;
5                (iv) the distance traveled by collection
6            vehicles to consolidation or transfer facilities;
7            to reuse, recycling, or composting facilities; and
8            to responsible markets;
9                (v) other factors that may contribute to
10            regional or jurisdictional cost differences;
11                (vi) the proportion of covered compostable
12            materials within all source-separated compostable
13            materials collected or managed through composting;
14            and
15                (vii) the general quality of covered materials
16            collected by service providers;
17            (B) the cost to transfer collected covered
18        materials from consolidation or transfer facilities to
19        reuse, processing, recycling, or composting facilities
20        or to responsible markets;
21            (C) the cost to:
22                (i) sort and process covered materials for
23            sale or use and remove contamination from covered
24            materials by a recycling or composting facility,
25            less the average fair market value for that
26            covered material based on market indices for the

 

 

HB4064- 38 -LRB104 13702 WRO 26387 b

1            region; and
2                (ii) manage contamination removed from
3            collected covered material;
4            (D) the administrative costs of service providers,
5        including education, public awareness campaigns, and
6        outreach program costs as applicable; and
7            (E) the costs of covered services for a reuse
8        system or covered services provided for reusable
9        covered materials and management of contamination.
10        (3) A service provider retains all revenue from the
11    sale of covered materials. Nothing in this Act may
12    restrict a service provider from charging a fee for
13    covered services of covered materials to the extent that
14    payment from a packaging producer responsibility
15    organization does not cover all costs of services,
16    including continued investment and innovation in
17    operations, operating profits, and returns on investments
18    required by a service provider to provide sustainability
19    of the services.
20        (4) Contract rates may be calculated per ton, by
21    household, or by another unit of measurement under an
22    approved producer responsibility plan.
23    (d) A producer responsibility organization or a recycling
24refund producer responsibility organization must establish a
25dispute resolution process utilizing third-party mediators for
26disputes related to payments.
 

 

 

HB4064- 39 -LRB104 13702 WRO 26387 b

1    Section 45. Agency responsibilities. The Agency must:
2        (1) appoint the initial membership of the advisory
3    boards as required under this Act;
4        (2) provide administrative and operating support to
5    the advisory board;
6        (3) consult on the initial needs assessment and needs
7    assessment updates that the packaging producer
8    responsibility organization conducts, and modify
9    requirements for needs assessments as it deems
10    appropriate;
11        (4) review and determine whether to approve producer
12    responsibility plans and amendments to producer
13    responsibility plans;
14        (5) by January 1, 2028, develop a list of covered
15    materials determined to be recyclable or compostable
16    statewide through systems in which covered materials are
17    commingled into a recyclables stream and a separate
18    compostables stream; these covered materials must be
19    collected at an optimal level of service and convenience
20    for covered entities, at a minimum, wherever collection
21    services for mixed municipal solid waste are available;
22        (6) by January 1, 2028, develop:
23            (A) a list of covered materials determined to be
24        recyclable or compostable and collected statewide
25        through systems other than the system required for

 

 

HB4064- 40 -LRB104 13702 WRO 26387 b

1        covered materials on the list established in paragraph
2        (5); and
3            (B) a list of exempt materials pursuant to federal
4        or State health and safety requirements with respect
5        to the materials or packaging being source reduced or
6        made reusable, recyclable, or compostable;
7        (6) in developing the lists under subparagraphs (A)
8    and (B) of paragraph (5), the following criteria are to be
9    used:
10            (A) current availability of recycling and
11        composting collection services;
12            (B) recycling and composting processing
13        infrastructure;
14            (C) capacity and technology for sorting covered
15        materials;
16            (D) whether a covered material is of a type and
17        form that is regularly sorted and aggregated into
18        defined streams for recycling processes or is included
19        in a relevant Institute of Scrap Recycling Industries
20        specification or its successors;
21            (E) availability of responsible markets;
22            (F) presence and amount of processing residuals
23        and contamination;
24            (G) quantity of covered material estimated to be
25        available and recoverable;
26            (H) projected future conditions for the criteria

 

 

HB4064- 41 -LRB104 13702 WRO 26387 b

1        in subparagraphs (A) through (G); and
2            (I) other criteria or factors, as determined by
3        the Agency;
4        (7) post on the Agency's website:
5            (A) the most recent registration materials
6        submitted by the producer responsibility
7        organizations;
8            (B) a list of registered service providers;
9            (C) the most recent packaging program needs
10        assessments;
11            (D) any packaging plan or amendment submitted by a
12        packaging producer responsibility organization that is
13        in draft form during the public comment period;
14            (E) the most recent recyclable or compostable
15        covered lists established as required under this Act;
16            (F) the list of exempt materials as defined in
17        this Act and covered materials exempt from performance
18        targets as approved in the producer responsibility
19        plan;
20            (G) links to producer responsibility organization
21        websites;
22            (H) comments of the public, advisory board, and
23        producer responsibility organizations on packaging
24        producer plans and needs assessments, and, if any, the
25        responses of the Agency to those comments; and
26            (I) links to adopted rules implementing this Act;

 

 

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1        and
2        (8) review and determine whether to approve the
3    selection of independent auditors to perform an annual
4    financial audit of each producer responsibility
5    organization.
 
6    Section 50. Packaging program needs assessments.
7    (a) Needs assessments are required as follows:
8        (1) By January 1, 2028, the packaging producer
9    responsibility organization must complete any
10    supplementary work to the needs assessment completed under
11    Public Act 103-0383 such that the packaging producer
12    responsibility organization has all information listed in
13    subsection (b).
14        (2) By January 1, 2033, the packaging producer
15    responsibility organization must provide an updated needs
16    assessment every 5 years thereafter.
17        (3) The Agency may modify what the packaging producer
18    responsibility organization is required to include in any
19    required needs assessments.
20    (b) An initial needs assessment shall include:
21        (1) identification of currently or recently introduced
22    covered materials and covered materials types;
23        (2) tons of collected covered materials;
24        (3) the characteristics of recycling and composting
25    programs, including a description of single-stream and

 

 

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1    dual-stream recycling systems offered in the State and
2    prevalence of their use, average frequency of collection
3    of covered materials for recycling and composting, types
4    of collection containers used, commonly accepted materials
5    for recycling and composting, and total costs by type of
6    covered entity;
7        (4) processing capacity at recycling facilities,
8    including total tons processed and sold, composition of
9    tons processed and sold, current technologies utilized,
10    and facility processing fees charged to collectors
11    delivering covered materials for recycling;
12        (5) capacity of, technology used by, and
13    characteristics of compost facilities to process and
14    recover compostable covered materials;
15        (6) capacity and number of drop-off collection sites;
16        (7) capacity and number of transfer stations and
17    transfer locations;
18        (8) average term length of residential recycling and
19    composting collection contracts issued by political
20    subdivisions and an assessment of contract cost
21    structures;
22        (9) an estimate of total annual collection and
23    processing service costs based on registered service
24    provider costs;
25        (10) available markets in the State for covered
26    materials and the capacity of those markets; and

 

 

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1        (11) covered materials sales by volume, weight, and
2    covered materials types introduced by producers.
3    (c) All subsequent needs assessment updates must include
4at least the following:
5        (1) an evaluation of:
6            (A) existing source reduction, reuse, recycling,
7        and composting, as applicable, for each covered
8        materials type, including collection rates, recycling
9        rates, composting rates, reuse rates, and return
10        rates, as applicable, for each covered materials type;
11            (B) overall recycling rate, composting rate, reuse
12        rate, and return rate for all covered materials; and
13            (C) the extent to which postconsumer recycled
14        content, by the best estimate, is or could be
15        incorporated into each covered materials type, as
16        applicable, including a review of market and technical
17        barriers to incorporating postconsumer materials into
18        covered materials and of whether for certain covered
19        materials more recycled content has a net negative
20        environmental impact;
21        (2) an evaluation of covered materials in the
22    disposal, recycling, and composting streams to determine
23    the covered materials types and amounts within each
24    stream, using new studies conducted by the Agency or
25    publicly available and applicable studies;
26        (3) proposals for reuse, recycling, composting rates

 

 

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1    for each covered materials type that could reasonably be
2    accomplished within a 5-year time frame in multiple units
3    of measurement, including, but not limited to, unit-based,
4    weight-based, and volume-based;
5        (4) recommended collection methods by covered
6    materials type to maximize collection efficiency, maximize
7    feedstock quality, and optimize service and convenience
8    for collection of covered materials to be considered or
9    that are included on lists established under this Act;
10        (5) proposed plans and metrics for how to measure
11    progress in achieving performance targets;
12        (6) an inventory of the current system, including: (i)
13    infrastructure, capacity, performance for the existing
14    covered services for covered materials operating in the
15    State; (ii) availability and cost of covered services for
16    covered materials to covered entities and any other
17    location where covered materials are introduced, including
18    identification of disparities in the availability of these
19    services in environmental justice areas compared with
20    other areas and proposals for reducing or eliminating
21    those disparities;
22        (7) an evaluation of investments needed to increase
23    source reduction, reuse, recycling, and composting rates
24    of covered materials to meet the proposed performance
25    targets in this Act;
26        (8) an assessment of the viability and robustness of

 

 

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1    markets for recyclable covered materials and the degree to
2    which these markets can be considered responsible markets;
3        (9) an assessment of the level and causes of
4    contamination of source-separated recyclable materials,
5    source-separated compostable materials and collected
6    reusables, and the impacts of contamination on service
7    providers, including the cost to manage this
8    contamination; and
9        (10) recommendations for meeting the criteria for an
10    alternative collection program as established under this
11    Act, and in every subsequent needs assessment after the
12    initial needs assessment, a review of existing alternative
13    collection programs for each covered material listed to
14    determine if the program is meeting the criteria under
15    this Act.
16    (d) In conducting a needs assessment, the packaging
17producer responsibility organization must:
18        (1) initiate a consultation process to obtain
19    recommendations from the advisory board, political
20    subdivisions, service providers and other interested
21    parties regarding the type and scope of information that
22    should be collected and analyzed in the needs assessment
23    required by this Section;
24        (2) contract with a third party who is not a producer,
25    a packaging producer responsibility organization, or a
26    member of the advisory board to conduct the needs

 

 

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1    assessment; and
2        (3) prior to finalizing the needs assessment, make the
3    draft needs assessment available for comment by the
4    advisory board, the Agency, and the public.
5    (e) Data requirements shall be as follows:
6        (1) A service provider or other person with data or
7    information necessary to complete a needs assessment must
8    provide the data or information to the packaging producer
9    responsibility organization contractor conducting the
10    needs assessment upon request.
11        (2) The packaging producer responsibility organization
12    contractor conducting the needs assessment must aggregate
13    and anonymize the data or information, excluding location
14    data necessary to assess needs, received from all parties
15    under this Section.
 
16    Section 55. Packaging producer program plan.
17    (a) By January 1, 2029, and every 5 years thereafter, a
18packaging producer responsibility organization must submit a
19packaging producer program plan to the Agency that describes
20the proposed operation by the organization of programs to
21fulfill the requirements of this Act and that incorporates the
22findings and results of needs assessments. If there is more
23than one packaging producer responsibility organization, they
24must coordinate to submit a single packaging producer program
25plan. Once approved, a packaging producer program plan remains

 

 

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1in effect for 5 years, as amended, or until a subsequent
2packaging producer program plan is approved.
3    (b) The first packaging producer program plan must be
4implemented by January 1, 2030; subsequent recycling refund
5program plans must be implemented within 6 months of approval
6by the Agency.
7    (c) A packaging producer responsibility organization must
8submit a draft packaging producer program plan or draft
9amendment to the advisory board prior to submitting the draft
10plan or draft amendment to the Agency and must, prior to
11submission of the draft plan or draft amendment to the Agency,
12respond to advisory board comments and recommendations
13received within 60 days of providing the draft program plan or
14draft amendment to the advisory board and indicate whether
15those comments or recommendations were accepted or rejected.
16    (d) A draft packaging producer program plan must include,
17at a minimum:
18        (1) performance targets established under this Act as
19    applicable to each covered materials type to be
20    accomplished within a 5-year period;
21        (2) proposed performance targets for reuse that are
22    informed by the latest needs assessment, and the reuse
23    performance target shall increase with each program plan;
24        (3) proposed performance targets for postconsumer
25    recycled content for covered materials, including paper
26    products, glass, metal, and plastic, that are informed by

 

 

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1    the latest needs assessment, consider technical barriers,
2    and consider health and safety requirements;
3        (4) a description of the methods of collection, how
4    collection service convenience metrics will be met, and
5    processing infrastructure and covered services to be used
6    for each covered materials type at covered entities, at a
7    minimum, and how these will meet the performance targets
8    established for covered materials:
9            (A) included on the recyclable list established in
10        this Act;
11            (B) included on the compostable list established
12        in this Act;
13            (C) that are reusable covered materials managed
14        through a reuse system.
15        (5) proposals for exemptions from performance targets
16    for covered materials that cannot be source reduced or
17    made reusable, recyclable, or compostable due to federal
18    or State health and safety requirements, identifying the
19    specific federal or State requirements and their impact on
20    the covered materials;
21        (6) a description of how, for each covered materials
22    type, the producer responsibility organization will
23    measure recycling, reuse, composting, and the inclusion of
24    postconsumer recycled content, including the relevant unit
25    of measurement;
26        (7) third-party certifications as required by the

 

 

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1    Agency or voluntarily undertaken;
2        (8) a budget identifying funding needs for each of the
3    plan's 5 calendar years, producer fees, a description of
4    the process used to calculate the fees, and an explanation
5    of how the fees meet the requirements of this Act;
6        (9) a description of infrastructure investments,
7    including goals and outcomes and a description of how the
8    process to offer and select opportunities will be
9    conducted in an open, competitive, and fair manner; how it
10    will address gaps in the system not met by service
11    providers; and potential financial and legal instruments
12    to be used;
13        (10) an explanation of how the program will be paid
14    for by the producer responsibility organization through
15    fees from producers, without any new or additional
16    consumer-facing fee to members of the public, businesses,
17    service providers, the State or any political
18    subdivisions, or any other person who is not a producer,
19    unless the fee is:
20            (A) a deposit made in connection with a product's
21        reuse, or recycling that can be redeemed by a
22        consumer; or
23            (B) a charge for service by a service provider,
24        regardless of whether registered;
25        (11) a description of activities to be undertaken by
26    the producer responsibility organization during each year

 

 

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1    to:
2            (A) foster the improved design of covered
3        materials under this Act;
4            (B) provide funding to expand and increase the
5        convenience of source reduction, reuse, collection,
6        recycling, and composting services to covered
7        entities, at a minimum according to the order of the
8        U.S. Environmental Protection Agency waste management
9        hierarchy;
10            (C) provide for contract rates under this Act to
11        service providers for statewide coverage of covered
12        services at an optimal level of convenience and
13        service for covered materials on the list established
14        in this Act, to covered entities, at a minimum; and
15            (D) monitor to ensure that postconsumer materials
16        are delivered to responsible markets;
17        (11) include terms and conditions for service
18    agreements with service providers and templates of the
19    service agreements;
20        (12) performance standards for service providers as
21    applicable to the service provided, including, but not
22    limited to:
23            (A) accepting all covered materials on the
24        recyclable or compostable list in this Act;
25            (B) labor standards and safety practices
26        including, but not limited to, safety programs, health

 

 

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1        benefits, and living wages; and
2            (C) meets operating standards, such as capture
3        rates, residual rates, and bale quality;
4        (13) a description of how the packaging producer
5    responsibility organization will treat and protect
6    nonpublic data submitted by service providers;
7        (14) a description of how the packaging producer
8    responsibility organization will provide technical
9    assistance to service providers in order to assist them in
10    delivering covered materials to responsible markets;
11        (15) a description of how the packaging producer
12    responsibility organization will increase public
13    awareness, educate, and complete outreach activities that
14    include culturally responsive materials and methods and
15    evaluate the efficacy of these efforts;
16        (16) proposed alternative collection programs;
17        (17) a description of how producers can purchase
18    postconsumer materials from service providers at market
19    prices if the producer is interested in obtaining recycled
20    feedstock to achieve minimum postconsumer recycled content
21    performance targets;
22        (18) a summary of consultations held with the advisory
23    board and other interested parties to provide input to the
24    producer responsibility plan, a list of recommendations
25    that were incorporated into the producer responsibility
26    plan as a result, and a list of rejected recommendations

 

 

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1    and the reasons for rejection;
2    (e) The packaging producer responsibility organization may
3at any time submit an amendment request to the agency
4regarding the lists in paragraph 5 of Section 45.
 
5    Section 60. Recycling refund program plan.
6    (a) By January 1, 2028, and every 5 years thereafter, a
7recycling refund producer responsibility organization must
8submit a recycling refund program plan to the Agency that
9describes the proposed operation by the organization of the
10program to fulfill the requirements of this Act and that
11incorporates the findings and results of packaging program
12needs assessments conducted under this Act. If there is more
13than one recycling refund producer responsibility
14organization, they must coordinate to submit a single
15recycling refund program plan. Once approved, a recycling
16refund program plan remains in effect for 5 years, as amended,
17or until a subsequent recycling refund program plan is
18approved.
19    (b) The first recycling refund program plan must be
20implemented by January 1, 2029; subsequent recycling refund
21program plans must be implemented within 6 months of approval
22by the Agency.
23    (c) A recycling refund producer responsibility
24organization must submit a draft recycling refund producer
25program plan or draft amendment to the recycling refund

 

 

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1advisory board prior to submitting the draft plan or draft
2amendment to the Agency and must, prior to submission of the
3draft plan or draft amendment to the Agency, respond to
4recycling refund advisory board comments and recommendations
5received within 60 days of providing the draft program plan or
6draft amendment to the recycling refund advisory board and
7indicate whether those comments or recommendations were
8accepted or rejected.
9    (d) The recycling refund program plan must contain the
10following:
11        (1) a list of the types of covered beverage containers
12    that will be included in the recycling refund program,
13    which at a minimum must be beverage containers that are:
14            (A) bottles and cans made of rigid plastic, glass
15        bottles, or metal; and
16            (B) have a capacity between 40 milliliters and one
17        gallon;
18        (2) proposed targets and deadlines for reuse rates to
19    be achieved;
20        (3) a description of the process that will be used by
21    the recycling refund producer responsibility organization
22    to meet performance targets for redemption and reuse as
23    described in this Act;
24        (4) a description of the metrics that will be used to
25    measure the performance targets;
26        (5) a description of how the proposed network of

 

 

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1    redemption sites will:
2            (A) satisfy the convenience standards and
3        addresses the evaluation criteria established in this
4        Act; and
5            (B) provide sufficient opportunities for consumers
6        of limited economic means to obtain their applicable
7        refund value immediately upon redemption;
8        (6) a description of the process that will be used to
9    remit to the recycling refund producer responsibility
10    organization deposits collected from consumers;
11        (7) a description of the incentives the recycling
12    refund producer responsibility organization will provide
13    to retail establishments to encourage them to host covered
14    beverage container collection mechanisms;
15        (8) a description of how the program will conduct
16    outreach and provide convenient redemption:
17            (A) throughout the State;
18            (B) in rural, urban, and environmental justice
19        areas; and
20            (C) to those persons that redeem relatively large
21        amounts of covered beverage containers; and
22        (9) a description of how beverage containers will be
23    labeled or how consumers will otherwise be made aware of
24    the beverage containers that are eligible for the
25    applicable refund value.
 

 

 

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1    Section 65. Plan and amendment review and approval
2procedure. The review and approval procedure for plans and
3plan amendments shall be as follows:
4        (1) The Agency must review and approve, deny, or
5    request additional information for draft recycling refund
6    program plans, packaging producer program plans, and draft
7    plan amendments no later than 120 days after the date of
8    receipt by the Agency. The Agency must post a draft plan or
9    draft amendment on the Agency's website and allow public
10    comment for no less than 45 days before approving,
11    denying, or requesting additional information on a draft
12    plan or draft amendment.
13        (2) If the Agency denies or requests additional
14    information for a draft plan or draft amendment, the
15    Agency must provide the recycling refund producer
16    organization and a producer responsibility organization
17    with the reasons, in writing, that the plan or plan
18    amendment does not meet the plan requirements in this Act.
19    The recycling refund producer organization or a packaging
20    producer responsibility organization has 60 days from the
21    date that the rejection or request for additional
22    information is received to submit to the Agency any
23    revisions or additional information necessary for the
24    approval of the draft plan or draft amendment. The Agency
25    must review and approve or disapprove the draft plan or
26    draft amendment no later than 60 days after the date the

 

 

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1    Agency receives the revisions or additional information.
2        (3) A recycling refund producer organization or a
3    packaging producer responsibility organization may
4    resubmit a draft plan or draft amendment to the Agency on
5    not more than 2 occasions. If after the second
6    resubmission, the Agency determines that the draft plan or
7    draft amendment does not meet the plan requirements of
8    this Act, the Agency must modify the draft plan or draft
9    amendment as necessary for it to meet the requirements of
10    this Act and approve it.
 
11    Section 70. Coordination plan.
12    (a) The packaging producer responsibility organization and
13the recycling refund producer responsibility organization are
14to create a coordination plan to ensure that their respective
15programs are complementary, operate efficiently, and meet all
16targets.
17    (b) The coordination plan must:
18        (1) Ensure consistent education and outreach messaging
19    to consumers;
20        (2) Ensure that a reciprocal compensation mechanism
21    exists so that the recycling refund producer
22    responsibility organization pays the packaging producer
23    responsibility organization for covered beverage
24    containers in material recovery facilities, and the
25    packaging producer responsibility organization pays the

 

 

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1    recycling refund producer responsibility organization for
2    secondary packaging in the recycling refund system;
3        (3) Evaluate packages and formats managed by each
4    program and consider opportunities for adding or moving
5    packages from one program to the other;
6        (4) Evaluate opportunities to coordinate
7    identification of, and efficient access to, processing
8    infrastructure and markets; and
9        (5) Identify actions to jointly optimize
10    infrastructure for reuse programs.
 
11    Section 75. Performance targets.
12    (a) The packaging producer responsibility organization is
13to achieve the following performance targets:
14        (1) After 2 years of program implementation:
15            (A) A collection rate that is greater than 50%;
16        and
17            (B) A recycling rate that is greater than 40%.
18        (2) After 5 years of program implementation:
19            (A) A collection rate that is greater than 65%;
20        and
21            (B) A recycling rate that is greater than 55%.
22        (3) Reuse rates of covered materials in an approved
23    packaging producer program plan under this Act.
24        (4) Composting rates of covered materials in an
25    approved packaging producer program plan under this Act.

 

 

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1    (b) The recycling refund producer responsibility
2organization must achieve the following performance targets:
3        (1) By the end of year 2 of the program, the redemption
4    rate aggregated for all recycling refund covered materials
5    must be greater than 65%.
6        (2) By the end of year 5 of the program, the redemption
7    rate aggregated for all recycling refund covered materials
8    must be greater than 85%.
9        (3) Achieve the reuse rate performance target in the
10    approved recycling refund program plan.
11    (c) The measurement criteria for performance targets shall
12be as follows:
13        (1) For purposes of determining whether recycling
14    performance targets are being met, except as modified by
15    the Agency, the packaging producer responsibility plan
16    must provide a methodology for measuring the amount of
17    recycled material at the point at which material leaves a
18    recycling facility and must account for:
19            (A) levels of estimated contamination documented
20        by the facility; and
21            (B) any exclusions for fuel or energy capture.
22        (2) For purposes of determining whether reuse
23    performance targets are being met, a producer
24    responsibility plan must provide a methodology for
25    measuring the amount of reusable covered materials at the
26    point at which reusable covered materials meet the

 

 

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1    following criteria as demonstrated by the producer and
2    approved by the Agency:
3            (A) whether the average minimum number of cycles
4        of reuses within a recognized reuse system has been
5        met based on the number of times an item must be reused
6        for it to have lower environmental impacts than the
7        single-use alternatives of those items; and
8            (B) whether the demonstrated or research-based
9        anticipated return rate of the covered material to the
10        reuse system has been met.
11        (3) For purposes of determining whether postconsumer
12    recycled content performance targets are being met, a
13    producer responsibility plan must provide a methodology
14    for measuring postconsumer recycled content across all
15    producers for a covered materials type where producers may
16    determine their postconsumer recycled content based on
17    their United States market territory if State-specific
18    postconsumer recycled content is impractical to determine.
19        (4) For other performance targets, the producer
20    responsibility organization must propose methodologies for
21    review and approval as part of the packaging producer
22    responsibility plan and recycling refund producer
23    responsibility plan.
24    (d) A packaging producer responsibility organization must
25implement an alternative collection program for covered
26materials included on an alternative collection list

 

 

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1established under this Act that:
2        (1) provides year-round, convenient, statewide
3    collection opportunities, including at least one drop-off
4    collection site located in each county;
5        (2) provides tiers of service for collection,
6    convenience, number of drop-off collection sites, and
7    additional collection systems based on county population
8    size and county population density;
9        (3) ensures materials are sent to responsible markets;
10        (4) uses education and outreach strategies that can be
11    expected to significantly increase consumer awareness of
12    the program throughout the State; and
13        (5) accurately measures the amount of each covered
14    material collected and the applicable performance target.
15    (e) The Agency, in consultation with an advisory board,
16may require that a packaging producer responsibility
17organization or recycling refund producer responsibility
18organization obtain and pay for a third-party certification of
19any activity or achievement required by this Act if a
20third-party certification is readily available, deemed
21applicable, and of reasonable cost. The Agency must provide a
22producer responsibility organization with notice of at least 6
23months prior to requiring use of third-party certification
24under this subsection.
 
25    Section 80. Producer fees.

 

 

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1    (a) A packaging producer responsibility organization must
2annually collect a fee from each member producer that must:
3        (1) vary based on the total amount of covered
4    materials each producer introduces in the prior year
5    calculated on a per-unit basis, such as per ton, per item,
6    or another unit of measurement;
7        (2) reflect the program costs for each covered
8    materials type, net of commodity value for that covered
9    materials type, as well as allocated fixed costs that do
10    not vary based on covered materials type;
11        (3) create incentives to reduce environmental impacts,
12    which may include:
13            (A) reducing the amount of:
14                (i) packaging per individual covered material
15            that is necessary to efficiently deliver a product
16            without damage or spoilage and without reducing
17            its ability to be recycled; and
18                (ii) paper used to manufacture individual
19            paper products;
20            (B) increasing the amount of covered materials
21        managed in a reuse system that are reused the number of
22        times needed to have lower environmental impacts than
23        the single-use alternatives of those items;
24            (C) increasing the proportion of postconsumer
25        material in covered materials while considering
26        technical limitations and net environmental impact of

 

 

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1        using more postconsumer material; and
2            (D) enhancing the recyclability or compostability
3        of a covered material;
4        (4) discourage using materials and design attributes
5    in covered materials whose environmental impacts and human
6    health impacts can be reduced by the methods listed under
7    paragraph (3); and
8        (5) generate revenue sufficient to pay in full:
9            (A) the fee required under this Act;
10            (B) financial obligations to complete activities
11        described in an approved packaging producer program
12        plan including payments to service providers;
13            (C) the operating costs of the producer
14        responsibility organization; and
15            (D) for establishment and maintenance of a
16        financial reserve that is sufficient to operate the
17        program in a fiscally prudent and responsible manner.
18    (b) The recycling refund producer responsibility
19organization annual fee requirements shall be as follows:
20        (1) Costs to pay the registration fee required in this
21    Act and to meet the performance targets in this Act and
22    convenience standards in this Act that exceed the amount
23    retained through scrap value and unclaimed deposits are to
24    be paid by producers as a material-specific fee that is:
25            (A) based on the cost to manage the material minus
26        its scrap value, among other factors;

 

 

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1            (B) modulated based on factors to reduce
2        environmental impact, which may include:
3                (i) Use of domestically sourced, verified
4            postconsumer recycled content;
5                (ii) Compliance with industry-accepted design
6            for recyclability standards;
7                (iii) Use of labeling to encourage appropriate
8            recycling behaviors;
9                (iv) Use of design factors that inhibit
10            recyclability; and
11                (v) Use of materials that are not on the
12            statewide recyclable covered materials list.
13        (2) The recycling refund producer responsibility
14    organization must institute a flat fee structure for those
15    beverage producers with less than $2 million in revenue,
16    or less than one ton of covered beverage container sold in
17    the State.
18    (c) Revenue collected under this Section that exceeds the
19amount needed to pay the costs described in paragraph (5) of
20subsection (a), and subsection (b), must be used to improve or
21enhance program outcomes or to reduce producer fees according
22to provisions of an approved producer responsibility plan.
23    (d) Fees collected under this Section may not be used for
24lobbying.
 
25    Section 85. Website requirements.

 

 

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1    (a) A packaging producer responsibility organization and a
2recycling refund producer responsibility organization must
3maintain a website that uses best practices for accessibility.
4    (b) Both the packaging producer responsibility
5organization and recycling refund producer responsibility
6organization websites must contain, at a minimum:
7        (1) information regarding a process that members of
8    the public can use to contact the relevant producer
9    responsibility organization with questions;
10        (2) the draft and approved producer responsibility
11    plans and any draft and approved amendments;
12        (3) annual reports submitted to the Agency;
13        (4) a link to related administrative rules
14    implementing this Act;
15        (5) the names of producers and brands that are not in
16    compliance with this Act; and
17        (6) a list, updated at least monthly, of all member
18    producers operating under the packaging producer
19    responsibility plan or recycling refund producer
20    responsibility plan.
21    (c) In addition to the requirements in subsection (b), the
22packaging producer responsibility organization website must
23have:
24        (1) a directory of all service providers operating
25    under the packaging producer responsibility plan
26    administered by the packaging producer responsibility

 

 

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1    organization, grouped by location or political
2    subdivision, and information about how to request service;
3        (2) information for State residents on what to do with
4    materials on the recyclable and compostable lists;
5        (3) the list of exempt materials as defined in this
6    Act and covered materials exempt from performance targets
7    as approved in the packaging producer responsibility plan;
8        (4) current and all past needs assessments; and
9        (5) education materials on source reduction, reuse,
10    recycling, and composting for producers and the general
11    public.
12    (d) In addition to the requirements in subsection (b), the
13recycling refund producer responsibility organization website
14must have:
15        (1) the list of covered beverage containers that are
16    redeemable for the applicable refund value in this Act;
17        (2) education materials on how to redeem covered
18    beverage containers and the importance of recycling
19    covered beverage containers; and
20        (3) a list and map of all redemption sites currently
21    accepting covered beverage containers for a refund,
22    including the hours each redemption site accepts covered
23    beverage containers.
 
24    Section 90. Applicable refund value.
25    (a) The applicable refund value shall be as follows:

 

 

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1        (1) Every covered beverage container sold or offered
2    for sale in the State shall have a refund value of 10 cents
3    beginning January 1, 2029.
4        (2) If a performance target was not met in the
5    previous calendar year, the Agency may adopt rules
6    providing a different refund value than the refund value
7    provided under paragraph (1), so long as the modified
8    refund value is not based on the type of beverage
9    container, but no more than:
10            (A) once during any 10-year period in consultation
11        with the recycling refund producer responsibility
12        organization; and
13            (B) once during any 5-year period if there is a
14        request from the recycling refund producer
15        responsibility organization for a change in the refund
16        amount.
17        (3) For covered beverage containers sold at retail,
18    the retail establishment shall collect the refund value
19    and remit it to the recycling refund producer
20    responsibility organization.
21        (4) The charge for the refund value of covered
22    beverage containers shall be separately stated on a
23    receipt, invoice, or similar billing document given to the
24    consumer.
25    (b) Excluding the material recovery facility and drop-off
26facility payments in this Section, the recycling refund

 

 

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1producer responsibility organization is not required to pay
2refunds on:
3        (1) A beverage container visibly containing or
4    contaminated by a substance other than water, residue of
5    the original contents, or ordinary dust;
6        (2) A beverage container that is crushed or broken or
7    damaged to the extent that the brand appearing on the
8    container cannot be identified;
9        (3) A beverage container that the recycling refund
10    producer responsibility organization has reasonable
11    grounds to believe was bought in another State; or
12        (4) A beverage container for which the recycling
13    refund producer responsibility organization has reasonable
14    grounds to believe a refund has already been given.
 
15    Section 95. Convenience standard for redemption of
16containers.
17    (a) The recycling refund producer responsibility
18organization must propose a convenience standard for
19redemption of containers in the recycling refund program plan
20that is based on the following:
21        (1) Ensure all consumers who pay a deposit have
22    reasonably convenient opportunities to redeem; and
23        (2) Provide appropriately convenient and equitable
24    access in both urban and rural areas.
25    (b) The Agency must evaluate the proposed convenience

 

 

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1standard based on the following criteria:
2        (1) Proximity to businesses that sell a high volume of
3    covered beverages containers;
4        (2) Additional vehicle miles traveled;
5        (3) Car and public transportation access;
6        (4) Population density;
7        (5) Environmental justice areas;
8        (6) Average family income; and
9        (7) Needs of people collecting large amounts of
10    covered beverage containers for primary or important
11    supplemental income.
12    (c) If the recycling refund producer responsibility
13organization does not meet the convenience standards in an
14approved program plan 2 calendar years in a row, the Agency may
15initiate rulemaking to support a recycling refund producer
16responsibility organization's program plan amendment to
17achieve the convenience standards under this Act.
 
18    Section 100. Redemption system.
19    (a) The network for collecting qualifying covered beverage
20containers shall be as follows:
21        (1) The recycling refund producer responsibility
22    organization must, at its own cost, install, operate, and
23    maintain a network of covered beverage container
24    collection mechanisms for consumers to redeem covered
25    beverage containers for the applicable refund value per

 

 

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1    this Act that satisfies:
2            (A) the convenience standard in this Act; and
3            (B) the performance targets in this Act.
4        (2) The network of covered beverage container
5    collection mechanisms may include a mix of ways for
6    consumers to redeem covered beverage containers including
7    express redemption sites and full-service redemption sites
8    at locations convenient to consumers such as nearby or in
9    the parking lots of retailers that sell covered beverage
10    containers, nonprofit organization facilities, and local
11    government sites.
12        (3) The recycling refund producer responsibility
13    organization may establish and dissolve partnerships with
14    any organization or individual to enhance redemption
15    network operations and better serve consumers.
16    (b) The recycling refund producer responsibility
17organization shall fairly compensate all locations hosting
18redemption sites for the space occupied by the covered
19beverage container collection mechanisms.
20    (c) A retail establishment has no obligation under this
21Act to host a covered beverage container processing mechanism.
22A retail establishment that chooses to host a redemption site
23is eligible to have a self-serve kiosk, located at the retail
24establishment at no charge by the recycling refund producer
25responsibility organization, to facilitate the printing of
26redemption vouchers, and pay the value of redemption vouchers

 

 

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1to consumers that can be used on the premises. The recycling
2refund producer responsibility organization shall reimburse
3retailers for the value of valid vouchers redeemed by
4customers.
5    (d) Requirements for standard bags for bag drop shall be
6as follows:
7        (1) A retail establishment larger than 20,000 square
8    feet must sell bags for the redemption program at the
9    price established by the recycling refund producer
10    responsibility organization.
11        (2) If the standard bags for the bag-drop program are
12    made of plastic film, the recycling refund producer
13    organization must:
14            (A) ensure that the bags have a minimum of 50%
15        postconsumer recycled content;
16            (B) demonstrate, upon request of the Agency, that
17        the waste film from the bags is being recycled at
18        responsible end-markets; and
19            (C) include instructions on the bag how the bag
20        should be utilized and recycled through a drop-off
21        program.
22        (3) The recycling refund producer organization must
23    credit the cost of any required bag purchase back to the
24    customer when the bag is returned and processed through
25    the deposit return system.
 

 

 

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1    Section 105. Use of unredeemed deposits. Any deposits that
2are not returned to the consumer are to be spent only by the
3recycling refund producer organization and only for one or
4more of the following purposes:
5        (1) education and outreach activities to encourage
6    redemption activity;
7        (2) increasing the number of redemption sites; and
8        (3) other activities that are described in the
9    recycling refund program plan that directly contribute to
10    achieving the performance requirements described in this
11    Act.
 
12    Section 110. Refund value to drop-off facilities and
13material recovery facilities. The following information is
14required, or the following information is relevant to the
15refund value to drop-off facilities and material recovery
16facilities:
17        (1) Beginning after the first full month that covered
18    beverage containers are sold with the applicable refund
19    value and ending once the packaging program begins, the
20    recycling refund producer organization shall make a
21    monthly payment directly to each material recovery
22    facility and drop-off facility based on data submitted by
23    each material recovery facility drop-off facility under
24    this Act.
25        (2) The recycling refund producer responsibility

 

 

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1    organization shall establish a quality standard for each
2    material.
3        (3) On a monthly basis, the operator of a material
4    recovery facility and drop-off facility shall submit the
5    following information to the recycling refund producer
6    responsibility organization: (i) the number of tons of
7    covered beverage containers the facility received for
8    processing in the previous month by material; and (ii) the
9    number of tons of covered beverage containers the facility
10    transferred to additional materials processing or
11    end-markets in the previous month by material;
12        (4) The recycling refund producer organization must
13    convert the material tons to unit equivalent using a
14    methodology that is published on its website and developed
15    in consultation with material recovery facilities.
16        (5) The recycling refund producer organization shall
17    pay each material recovery facility and drop-off facility
18    at least 50% of the refund value for each covered beverage
19    container that the material recovery facility transferred
20    to additional materials processing or end-markets and that
21    meets the quality standard in paragraph (2).
22        (6) Material recovery facilities must share the
23    payments with their customers consistent with their supply
24    agreements so that communities and generators receive the
25    appropriate amount of the refund values paid to material
26    recovery facilities and drop-off facilities.

 

 

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1        (7) The operators of material recovery facilities and
2    drop-off facilities shall use an industry-standard scale
3    to measure the weight of all covered beverage container
4    materials that enter the facility.
5        (8) The recycling refund producer responsibility
6    organization may conduct quarterly audits on the quality
7    and quantity of the material recovery facilities' and
8    drop-off facilities' material upon request by the
9    organization and at the organization's expense.
10        (9) The recycling refund producer responsibility
11    organization may choose to partner with a material
12    recovery facility or drop-off facility to provide space
13    and install the necessary equipment to co-locate a
14    recycling refund processing facility in the same vicinity.
15        (10) Monthly payments to the material recovery
16    facilities and drop-off facilities shall end following the
17    end of the first packaging producer program plan period.
 
18    Section 115. Reporting.
19    (a) Packaging producer responsibility organization annual
20report requirements shall be as follows:
21        (1) By June 1, 2030, and annually thereafter, a
22    packaging producer responsibility organization shall
23    submit a report to the Agency that contains, at a minimum,
24    the following information for the previous calendar year:
25            (A) the amount of covered materials introduced, by

 

 

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1        each covered materials type, reported in the same
2        units used to establish fees under this Act;
3            (B) progress made toward the performance targets
4        reported in the same units used to establish producer
5        fees under this Act and reported statewide, including:
6        (i) the amount of covered materials successfully
7        source reduced, reused, recycled, and composted by
8        covered materials type and the strategies or
9        collection method used; and (ii) information about
10        third-party certifications obtained;
11            (C) the total cost to implement the program and a
12        detailed description of program expenditures by
13        category, including: (i) the total amount of producer
14        fees collected; (ii) a description of infrastructure
15        investments made; and (iii) a breakdown of payments by
16        covered services, covered entities, and regions of the
17        State;
18            (D) a copy of a financial audit of program
19        operations conducted by an independent auditor
20        approved by the Agency that meets the requirements of
21        the Financial Accounting Standards Board's Accounting
22        Standards Update 2016-14, Not-for-Profit Entities
23        (Topic 958), as amended;
24            (E) a description of program performance problems
25        that emerged in specific locations and efforts taken
26        or proposed by the producer responsibility

 

 

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1        organization to address them;
2            (F) a description of public awareness, education,
3        and outreach activities undertaken, including any
4        evaluations conducted of their efficacy;
5            (G) a summary of consultations held with the
6        advisory board and how any feedback was incorporated
7        into the report as a result, together with a list of
8        rejected recommendations and the reasons for
9        rejection;
10            (H) a list of producers found to be out of
11        compliance with this Act and actions taken by the
12        producer responsibility organization to return
13        producers to compliance, and notification of any
14        producers that are no longer participating in the
15        producer responsibility organization or have been
16        expelled due to their lack of compliance;
17            (I) proposed amendments to the producer
18        responsibility plan to improve program performance or
19        reduce costs, including changes to producer fees,
20        infrastructure investments, or contract rates;
21            (J) recommendations for additions or removal of
22        covered materials to or from the recyclable or
23        compostable covered materials lists developed under
24        this Act; and
25            (K) information requested by the Agency to
26        evaluate the effectiveness of the program as it is

 

 

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1        described in the producer responsibility plan and to
2        assist with determining compliance with this Act.
3        (2) If there is more than one packaging producer
4    responsibility organization, they must coordinate to
5    submit a single annual report.
6        (3) Every fourth year after a packaging producer
7    responsibility plan is approved by the Agency, a
8    performance audit of the program must be completed by the
9    packaging producer responsibility organization. The
10    performance audit must conform to audit standards
11    established by the United States Government Accountability
12    Office; the National Association of State Auditors,
13    Comptrollers, and Treasurers; or another nationally
14    recognized organization approved by the Agency.
15    (b) Recycling refund producer responsibility organization
16annual report requirements shall be as follows:
17        (1) By June 1, 2030, and annually thereafter, the
18    recycling refund producer responsibility organization
19    shall submit a report to the Agency that contains, at a
20    minimum, the following information for the previous
21    calendar year:
22            (A) covered beverage containers included in the
23        program sold in the State, by material type;
24            (B) covered beverage containers redeemed and
25        recycled through the program, by material type;
26            (C) redemption sites and processing facilities;

 

 

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1            (D) verification of materials handled at
2        responsible end-markets;
3            (E) audited financial reports, including sources
4        and uses of funds; and
5            (F) an evaluation of convenience of the program
6        with the same criteria the Agency must use under this
7        Act.
8        (2) If there is more than one recycling refund
9    producer responsibility organization, they must coordinate
10    to submit a single annual report.
11    (c) The recycling refund producer responsibility
12organization and packaging producer responsibility
13organization that submits information or records to the Agency
14under subsections (a) and (b) may request that a portion of the
15information or records be made available only for the
16confidential use of the Agency, the Director of the Agency, or
17the appropriate division of the Agency. The Director of the
18Agency shall give consideration to the request, and if the
19Director determines that this action is not detrimental to the
20public interest, the Director must grant the request for the
21information to remain confidential.
22    (d) All data reported by a packaging producer
23responsibility organization and a recycling refund producer
24responsibility organization under this Section must, at the
25request of the Agency no more than once annually, be audited by
26an independent third party. A packaging producer

 

 

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1responsibility organization or recycling refund producer
2responsibility organization is responsible for all costs
3associated with the data audit. Auditable data shall only
4include data held by a packaging producer responsibility
5organization or a recycling refund producer responsibility
6organization. Auditing of any data inputs to the packaging
7producer responsibility or recycling refund producer
8responsibility organization is the responsibility of the
9respective producer responsibility organization.
10    (e) A packaging producer responsibility organization or
11recycling refund producer responsibility organization that
12fails to meet a performance target required under this Act or
13approved in a producer responsibility plan must, within 90
14days of filing an annual report under this Section, file with
15the Agency an explanation of the factors contributing to the
16failure and propose an amendment to the producer
17responsibility plan specifying changes including in its
18operations that the packaging producer responsibility
19organization or recycling refund producer responsibility
20organization will make that are designed to achieve the
21performance targets and convenience standard.
22    (f) By October 15, 2032, and every 2 years thereafter, the
23Agency must submit a report to the Governor and to the General
24Assembly. The report must contain:
25        (1) a summary of the operations of this Act during the
26    previous years including the performance targets versus

 

 

HB4064- 80 -LRB104 13702 WRO 26387 b

1    actual performance;
2        (2) a summary of the needs assessment;
3        (3) a link to reports filed under this Act;
4        (4) recommendations for policy, statutory, or
5    regulatory changes to the program;
6        (5) an analysis of the impacts of exempting certain
7    materials from the definition of covered materials and of
8    exempting certain persons from the definition of producer;
9        (6) a list of efforts undertaken by the Agency to
10    enforce and secure compliance with this Act; and
11        (7) any other information the Agency deems to be
12    relevant.
13    (e) By April 1, 2030, and each year thereafter, each
14material recovery facility and drop-off facility that receives
15covered materials are to report annually to the packaging
16producer responsibility organization and the recycling refund
17producer responsibility organization and the Agency including
18the following information:
19        (1) Amount of material accepted by supplier and
20    location of origin (municipality, service provider, or
21    other);
22        (2) Amount of material sold to market, by commodity
23    type;
24        (3) Amount of residue or waste generated; and
25        (4) Verification that end-markets are responsible and
26    compliant with program requirements.
 

 

 

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1    Section 120. Anticompetitive conduct. A packaging producer
2responsibility organization or a recycling refund producer
3responsibility organization that arranges collection,
4recycling, composting, source reduction, or reuse services
5under this Act may engage in anticompetitive conduct to the
6extent necessary to plan and implement collection, recycling,
7composting, source reduction, or reuse systems to meet the
8obligations under this Act, and is immune from liability under
9State laws relating to antitrust, restraint of trade, and
10unfair trade practices.
 
11    Section 125. Rulemaking. The Agency shall adopt rules to
12implement this Act.
 
13    Section 130. Enforcement and penalties.
14    (a) The Agency may administratively impose a civil penalty
15of up to $1,000 per violation per day on any producer who
16violates this Act and up to $10,000 per violation per day for
17the second and each subsequent violation.
18    (b) The Agency may administratively impose a civil penalty
19of up to $1,000 per violation per day on any packaging producer
20responsibility organization or recycling refund producer
21responsibility organization that violates this Act and up to
22$10,000 per violation per day for the second and each
23subsequent violation in any calendar year.

 

 

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1    (c) The Agency may, in addition to assessing the penalties
2provided in subsections (a) and (b) of this Section, take any
3combination of the following actions:
4        (1) issue a corrective action order to a producer or a
5    packaging producer responsibility organization or a
6    recycling refund producer responsibility organization;
7        (2) issue an order to a packaging producer
8    responsibility organization or a recycling refund producer
9    responsibility organization to provide for the continued
10    implementation of the program in the absence of an
11    approved plan;
12        (3) revoke the producer responsibility organization's
13    plan approval and require resubmittal of a producer
14    responsibility;
15        (4) require a producer responsibility organization to
16    revise or resubmit a plan within a specified time frame;
17    or
18        (5) require additional reporting related to the area
19    of noncompliance.
20    (d) The Agency may assess a penalty on a person that
21continues to sell or distribute covered beverage containers of
22a producer that is in violation of this Act 60 days after
23receipt of the written warning under this Section. The amount
24of the penalty that the Agency may assess under this
25subsection is twice the value of the covered beverage
26containers sold in violation of this Act or $500, whichever is

 

 

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1greater. The Agency must waive the penalty upon verification
2that the person has discontinued distribution or sales of the
3covered beverage containers within 30 days of the date the
4penalty is assessed.
5    (e) For a producer or producer responsibility organization
6out of compliance with the requirements of this Act, the
7Agency shall provide written notification and offer
8information. For the purposes of this Section, written
9notification serves as notice of the violation. The Agency
10must issue at least one notice of violation by certified mail
11prior to assessing a penalty and the Agency may only impose a
12penalty on a producer that has not met the requirements of this
13Act 60 days following the date the written notification of the
14violation was sent.
15    (f) The Agency shall adopt rules providing for an
16administrative proceeding inn which a penalty under this
17Section may be imposed. All final administrative decisions
18under this Act or rules adopted under this Act shall be subject
19to judicial review pursuant to the Administrative Review Law,
20as amended, and the rules adopted under it.
21    (g) The Attorney General may bring an action in the
22circuit court to enforce the collection of any monetary
23penalty imposed. Penalties levied under this Section must be
24deposited in the Recycling Refund Program Fund or Packaging
25Producer Responsibility Program Fund.
 

 

 

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1    Section 135. Packaging Producer Responsibility Program
2Fund. The Packaging Producer Responsibility Program Fund is
3established as a special Fund in the State treasury.
4Appropriations and transfers to the account and fees collected
5under the packaging producer responsibility program, or as
6otherwise provided in this Act or rules adopted under this
7Act, must be credited to the Fund. Earnings, such as interest,
8dividends, and any other earnings arising from assets of the
9Fund, must be credited to the Fund. Moneys remaining in the
10Fund at the end of a fiscal year remains in the account until
11expended. Moneys from the Fund are appropriated in a
12continuing appropriation to the Agency to pay the reasonable
13costs of the Agency to administer this Act.
 
14    Section 140. Recycling Refund Program Fund.
15    (a) The recycling refund program account is established as
16a special Fund in the State treasury. All receipts received by
17the Agency under this Act or rules adopted under this Act must
18be deposited in the Fund, except as provided in this Act or
19rules adopted under this Act.
20    (b) Expenditures from the Fund may be used by the Agency
21only for implementing, administering, and enforcing the
22requirements of this Act related to the recycling refund
23program. Only the Director of the Agency may authorize
24expenditures from the Fund. Moneys from the Fund are
25appropriated in a continuing appropriation to the Agency for

 

 

HB4064- 85 -LRB104 13702 WRO 26387 b

1the purposes under this Section.
 
2    Section 800. The State Finance Act is amended by adding
3Sections 5.1030 and 5.1031 as follows:
 
4    (30 ILCS 105/5.1030 new)
5    Sec. 5.1030. The Packaging Producer Responsibility Program
6Fund.
 
7    (30 ILCS 105/5.1031 new)
8    Sec. 5.1031. The Recycling Refund Program Fund.