SB3953 102ND GENERAL ASSEMBLY

LRB102 21315 CPF 30427 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3953

Introduced 1/21/2022, by Sen. Melinda Bush

SYNOPSIS AS INTRODUCED:

See Index

Creates the Plastic Pollution and Recycling Modernization Act. Provides that producers of specified covered products must register with and be a member of a producer responsibility organization that administers a producer responsibility program. Requires producer responsibility organizations to work with recycling system participants in order to ensure that covered products collected by a recycling collection service are recycled by responsible end markets applying to specified covered products. Exempts small producers from the requirement to be a member of a producer responsibility organization. Requires producer responsibility organizations to submit to the Environmental Protection Agency a plan for the development and implementation of a producer responsibility program with specified requirements. Provides that producer responsibility organizations shall establish a schedule of membership fees to be paid by members of the organization. Provides that producer responsibility organizations must submit to the Agency for approval by the Agency an annual report on the development, implementation, and operation of the producer responsibility program. Contains provisions regarding compensation to units of local government and unit of local government service providers. Establishes the Illinois Recycling System Advisory Council to perform specified duties. Creates the Producer Responsibility Fund and the Waste Prevention and Reuse Fund and makes conforming changes in the State Finance Act. Provides that specified moneys shall be deposited into the Funds. Establishes the Truth in Labeling Task Force to study and evaluate misleading or confusing claims regarding the recyclability of products made on a product or product packaging. Contains other provisions. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning safety.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Plastic Pollution and Recycling Modernization Act.

Section 5. Findings. The General Assembly finds that:

(1) It is necessary to adopt a policy that will minimize unintended consequences, such as the deterioration of natural systems regionally and worldwide, as well as increased levels of pollution and greenhouse gas emissions that contribute to global climate change and reductions in human well-being, especially for the most vulnerable populations, across the entire life cycle of products and that will require producers of packaging and printed paper sold or distributed in Illinois to help finance the management of, and ensure an environmentally sound stewardship program for, their products.

(2) It is the State of Illinois's policy to prioritize practices that prevent and reduce the negative environmental, social, economic, and health impacts of production, consumption, and end-of-use management of products and packaging across their life cycles, and that it is the obligation of producers to share in the responsibility to reduce those impacts.

Section 10. Definitions. In this Act:

"Agency" means the Environmental Protection Agency.

"Brand" means any mark, word, name, symbol, design, device, or graphical element, or a combination thereof, including a registered or unregistered trademark, that identifies a product and distinguishes the product from other products.

"Commingled recycling" means the recycling or recovery of 2 or more materials that are mixed together and that generally would be separated into individual materials at a commingled recycling processing facility in order to be marketed.

"Commingled recycling processing facility" means a facility that:

(1) receives source separated commingled recyclable materials that are collected, commingled, from a collection program providing the opportunity to recycle; and

(2) separates the recyclable materials described in paragraph (1) into marketable commodities or streams of materials that are intended for use or further processing by others.

"Commingled recycling processing facility" does not include any of the following:

(1) Scrap metal recycling facilities.

(2) Scrap automotive or appliance recycling facilities.

(3) Recycling facilities handling covered electronic devices.

(4) Recycling processing facilities that process only noncommingled, source separated recyclable material from commercial entities.

(5) Recycling processing facilities that recover commingled recyclable material primarily from the construction and demolition debris waste stream.

(6) Recycling depots.

(7) Recycling reload facilities.

(8) Limited sort facilities, as defined by rule by the Agency.

"Contaminant" means:

(1) a material set out for recycling collection that is not properly prepared and on the list of materials accepted for recycling collection by a recycling collection program; or

(2) a material shipped to a recycling end market that is not accepted or desired by that end market.

"Contamination" means the presence of one or more contaminants in a recycling collection or commodity stream in an amount or concentration that negatively impacts the value of the material or negatively impacts a processor's ability to sort that material.

"Covered electronic device" means:

(1) a computer monitor of any type having a viewable area greater than 4 inches measured diagonally;

(2) a desktop computer or portable computer;

(3) a television;

(4) a computer peripheral; or

(5) a printer.

"Covered product" means any of the following:

(1) Packaging.

(2) Printing and writing paper.

(3) Food serviceware.

"Covered product" does not include the following:

(1) A beverage container.

(2) Bound books.

(3) Napkins, paper towels, or other paper intended to be used for cleaning or the absorption of liquids.

(4) Rigid pallets used as the structural foundation for transporting goods lifted by a forklift, pallet jack, or similar device.

(5) Specialty packaging items that are used exclusively in industrial or manufacturing processes, including, but not limited to:

(A) cores and wraps for rolls of packaging sold by a mill to a packaging converter or food processor; and

(B) trays, whether designed for a single use or multiple uses, used for the transport of component parts from a parts supplier to a manufacturer that assembles those parts.

(6) Liquefied petroleum gas containers that are designed to be refilled.

(7) A material that the producer demonstrates is exempt under subsection (m) of Section 20.

(8) Pallet wrap or similar packaging used to secure a palletized load if added by a person that is not the producer of the palletized covered products.

(9) Packaging related to containers for architectural paint that has been collected by a producer responsibility organization.

(10) Any item that is not ultimately discarded inside this State, whether for purposes of recovery or disposal.

(11) Items sold on a farm or used on a farm, including items used for farm use or for processing on a farm, provided that an item used on a farm is not subsequently sold at a retail establishment that is not located on a farm.

(12) Items used by a nursery dealer with a valid nursery dealer's certificate issued by the Department of Agriculture under Section 7 of the Insect Pest and Plant Disease Act that generates the majority of the nursery dealer's revenue through the sale of nursery stock, as defined in Section 2 of the Insect Pest and Plant Disease Act, provided that the items are not sold through retail sales.

(13) Packaging and paper products sold or supplied in connection with any of the following:

(A) Prescription drugs.

(B) Nonprescription drugs.

(C) Drugs marketed under a brand name.

(D) Drugs marketed under a generic name.

(14) Packaging and paper products sold or supplied in connection with drugs that are used for animal medicines, including, but not limited to, parasiticide drugs for animals.

(15) Packaging and paper products sold or supplied in connection with any of the following:

(A) Infant formula as defined in 21 U.S.C. 321(z).

(B) Medical food as defined in 21 U.S.C. 360ee(b)(3).

(C) Fortified oral nutritional supplements used for individuals who require supplemental or sole source nutrition to meet nutritional needs due to special dietary needs directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms are defined as by the International Classification of Diseases, Tenth Revision, or other medical conditions as determined by the Agency.

(16) Wine and spirit containers for which a refund value is established under Illinois law.

(17) Packaging for products:

(A) that are required under State or other federal regulation pertaining to toxic or hazardous materials to state on the label or container that the packaging should not be recycled or should be disposed of in a manner other than recycling; or

(B) identified by the Agency by rule as a product that is required by law to state on the label or container that the packaging should not be recycled or should be disposed of in a manner other than recycling.

(18) Any other material, as determined by the Agency by rule, after consultation with the Illinois Recycling System Advisory Council.

"Food serviceware" means paper or plastic plates, wraps, cups, bowls, pizza boxes, cutlery, straws, lids, bags, aluminum foil, clamshells, or similar containers that are:

(1) generally intended for single use; and

(2) sold to a retailer or a dine-in food establishment or a take-out food establishment, regardless of whether the item is used to prepackage food for resale, is filled on-site for food ordered by a customer or is resold as is.

"Large producer" means a producer that is among the 25 largest producers of covered products based on market share.

"Licensee" means a person who is licensed by a brand and manufactures a covered product or a packaged item under that brand.

"Litter" means waste that is improperly placed so as to be a nuisance or an aesthetic, health, or environmental concern.

"Market share" means a producer's percentage of all covered products sold in or into this State during a specified time period, as calculated in accordance with methods established by the Agency by rule.

"Mechanical recycling" means a form of recycling that does not change the basic molecular structure of the material being recycled.

"Nonprofit organization" means an organization or group of organizations described in Section 501(c)(3) of the Internal Revenue Code that is exempt from income tax under Section 501(a) of the Internal Revenue Code.

"Packaging" means:

(1) materials used for the containment or protection of products, including, but not limited to, paper, plastic, glass, or metal or a mixture thereof;

(2) single-use bags, including, but not limited to, shopping bags; and

(3) nondurable materials used in storage, shipping, or moving, including, but not limited to, packing materials, moving boxes, file boxes, and folders.

"Packaging" does not include:

(1) food serviceware; or

(2) sharps.

"Printing and writing paper" includes, but is not limited to, newspaper, magazines, flyers, brochures, booklets, catalogs, telephone directories, and paper used for copying, writing, or other general use.

"Processor" means a person who owns or operates a commingled recycling processing facility.

"Producer" means a person that is determined to be the producer of a covered product under Section 15.

"Producer responsibility organization" means a nonprofit organization established by a producer or group of producers to administer a producer responsibility program.

"Producer responsibility program" means a statewide program for the responsible management of covered products that is administered by a producer responsibility organization pursuant to a plan approved by the Agency under Section 35.

"Recycling collection" means the act or process of gathering recyclable materials by any of the following:

(1) On-route residential collection from the generator at the place of generation.

(2) On-site nonresidential collection from the generator at the place of generation.

(3) Multifamily on-route residential collection from each multifamily dwelling that has 5 or more units.

(4) Recycling depots at a disposal site or another designated location that is more convenient to the population being served, and expanded depots.

(5) Other collection methods included in an approved producer responsibility program plan.

"Recycling depot" means a location where recyclable materials are accepted from the public or commercial businesses and transported to a location for processing or to an end market.

"Recycling reload facility" means a facility other than a recycling depot where recyclable materials are received, consolidated, and made ready for transport to another location for processing or to a responsible end market.

"Recycling system" means all aspects of the programs and participants that have a role in Illinois' statewide recycling structure, including producers of products sold in or into Illinois, generators of recyclable materials, governments that regulate materials management programs, businesses that collect and process recyclable materials, and persons who receive recyclable materials to convert to new feedstock or products.

"Responsible end market" means a materials market in which the recycling or recovery of materials or the disposal of contaminants is conducted in a way that benefits the environment and minimizes risks to public health and worker health and safety.

"Responsible management" means the handling, tracking, and disposition of covered products from the point of collection through the final destination of the collected material in a way that benefits the environment and minimizes risks to public health and worker health and safety.

"Responsible recycling" means the handling of covered products for recycling and removal of contaminants by a certified or permitted processor and disposition to a responsible end market.

"Sharps" includes needles, IV tubing with needles attached, scalpel blades, lancets, glass tubes that could be broken during handling and syringes that have been removed from their original sterile containers.

"Small producer" means a producer that:

(1) is a nonprofit organization;

(2) is a public body;

(3) has a gross revenue of less than $5 million for the organization's most recent fiscal year;

(4) sold in or into Illinois less than one metric ton of covered products for use in this State in the most recent calendar year;

(5) is a manufacturer of a beverage sold in a beverage container that sold in or into Illinois less than 5 metric tons of covered products, including, but not limited to, secondary and tertiary packaging for beverage containers, for use in this State in the most recent calendar year;

(6) is:

(A) a restaurant, food cart, or similar business establishment that primarily sells to members of the public food that is generally intended to be consumed immediately and without the need for further preparation, either on or off the premises; and

(B) is not a producer of food serviceware as described in Section 15; or

(7) operates a single retail sales establishment, has no online sales, and is not supplied or operated as part of a franchise or a chain.

"Specifically identified material" means a material or covered product identified by the Agency under Section 100.

"Uniform statewide collection list" means the list of materials established in accordance with the requirements of subsection (d) of Section 95.

"Unit of local government service provider" means any of the following:

(1) A collection service franchise holder.

(2) Any person authorized by a city or county to provide recycling collection services described in paragraphs (1) through (4) of the definition of "recycling collection".

(3) Any person authorized by a unit of local government to provide recycling collection services described in paragraph (4) of the definition of "recycling collection".

Section 15. Determining producers of covered products.

(a) For purposes of this Act, the producer of a covered product shall be determined as follows:

(1) For items sold in packaging at a physical retail location in this State:

(A) If the item is sold in packaging under the manufacturer's own brand or is sold in packaging that lacks identification of a brand, the producer of the packaging is the person that manufactures the packaged item.

(B) If the item is manufactured by a person other than the brand owner, the producer of the packaging is the person that is the licensee of a brand or trademark under which a packaged item is used in a commercial enterprise, sold, offered for sale, or distributed in or into this State, whether or not the trademark is registered in this State.

(C) If there is no person described in subparagraph (A) or (B) of this paragraph within the United States, the producer of the packaging is the person that imports the packaged item into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in this State.

(2) For items sold or distributed in packaging in or into this State via remote sale or distribution:

(A) The producer of packaging used to directly protect or contain the item is the same as the producer for purposes of paragraph (1).

(B) The producer of packaging used to ship the item to a consumer is the person that packages and ships the item to the consumer.

(3) For all other packaging that is a covered product, the producer of the packaging is the person that first distributes the packaged item in or into this State.

(b) For printing and writing paper that is a magazine, newspaper, catalog, telephone directory, or similar publication, the producer is the publisher. For all other printing and writing paper, the producer is as follows:

(1) The person who manufactures the printing and writing paper under the manufacturer's own brand.

(2) If the printing and writing paper is manufactured by a person other than the brand owner, the person whom the owner or licensee of a brand or trademark under which the printing and writing paper is used in a commercial enterprise, sold, offered for sale, or distributed in or into this State, whether or not the trademark is registered in this State.

(3) If there is no person described in subparagraph (1) or (2) within the United States, the person who imports the printing and writing paper into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the printing and writing paper in this State.

(c) The producer of food serviceware is the person that first sells the food serviceware in or into this State.

Section 20. Producers and producer responsibility organizations.

(a) Except as provided in subsection (d) of this Section and Section 25, each producer must register with and be a member of a producer responsibility organization that administers a producer responsibility program.

(b) A producer is required to pay an annual membership fee to a producer responsibility organization as described in Section 45. Fees established under this Act that are charged to a producer responsibility organization must be paid by the producer responsibility organization.

(c) A producer is not required to pay membership fees to a producer responsibility organization for any covered product if another person has registered with a producer responsibility organization as the producer responsible for that covered product under this Act.

(d) A producer is not required to be a member of a producer responsibility organization if, for all covered products the producer sells, offers to sell, or distributes in or into this State, another person has registered with a producer responsibility organization as the producer responsible for that covered product under this Act.

(e) A producer that is registered with a producer responsibility organization must:

(1) pay the membership fee calculated under the schedule established by the producer responsibility organization pursuant to Section 45; and

(2) upon request, provide the producer responsibility organization with records or other information necessary for the organization to meet the organization's obligations under this Act.

(f) A person who sells a covered product in or into this State via remote means and who is only the producer of the packaging used to ship the covered product, as determined under subparagraph (B) of paragraph (2) of subsection (a) of Section 15, must notify the producer of the covered product, as determined under paragraph (1) of subsection (a) of Section 15, and the seller's producer responsibility organization of the sale of a packaged product in or into this State.

(g) A producer responsibility organization's obligations under this Act are to work with recycling system participants in order to ensure, to the extent practicable, that covered products collected by a recycling collection service are recycled by responsible end markets apply to covered products that are:

(1) collected for recycling pursuant to Section 65;

(2) identified on the uniform statewide collection list and collected pursuant to a collection program providing the opportunity to recycle;

(3) identified on the list of specifically identified materials; or

(4) recycled in an effort to achieve the statewide plastic recycling goal established under Section 125.

(h) A producer responsibility organization shall make the following available on the organization's website and update it at least once per calendar quarter:

(1) A searchable registry of the organization's compliant members.

(2) The identity of any members who are currently not in compliance with this Act and the reason for noncompliance.

(i) If the Agency approves more than one producer responsibility program, the producer responsibility organizations with approved programs shall establish a producer responsibility organization coordinating body and submit a coordination plan to the Agency for approval. If requested by the producer responsibility organizations, the Agency may serve as the coordinating body or may form or oversee the coordinating body. The Agency shall establish the following by rule:

(1) Methods for calculating market share.

(2) Standards and requirements for coordination plans and coordination between producer responsibility organizations.

(3) A process for submittal, review, approval, or rejection and revocation of coordination plans.

(4) A process for the Agency to issue an order requiring a coordination plan.

A coordination plan approved or ordered by the Agency shall be implemented by all producer responsibility organizations. If the coordination plan conflicts with an approved program plan, the details of the coordination plan prevail.

A coordination plan approved or ordered by the Agency is valid until revoked or a new coordination plan is approved by the Agency.

The producer responsibility organization coordinating body shall submit for approval a new coordination plan on a schedule that coincides with the schedule for producer responsibility organizations to submit new producer responsibility program plans.

(j) A producer responsibility organization must ensure that each member of its organization complies with subsection (e). The organization shall notify the Agency within 30 days after:

(1) the end of a 3-month period in which the organization unsuccessfully attempted to obtain a membership fee, records, or information from a producer under subsection (e); or

(2) the date a producer member leaves the organization for any reason.

(k) A producer responsibility organization must provide contact information for any of the organization's registered members to the Agency upon request.

(l) No later than December 31 of each year in which an approved producer responsibility program plan is required to be operated in this State, a producer responsibility organization must have members with a combined market share, calculated in accordance with rules established under this Section, that is at least 10% of the total combined market share of all producers of covered products.

(m) A producer may demonstrate to the Agency that a material is exempt from the requirements for a covered product if the material:

(1) is collected through a recycling collection service not provided under the opportunity to recycle;

(2) does not undergo separation from other materials at a commingled recycling processing facility; and

(3) is recycled at a responsible end market.

If only a portion of the material sold in or into this State by a producer meets the criteria of this subsection, the portion that meets the criteria is exempt and the portion that does not meet the criteria is a covered product.

Section 25. Exemptions.

(a) A small producer is exempt from the requirement to be a member of a producer responsibility organization under Section 20.

(b) The Agency may adopt rules to exempt from the requirements of Section 20 producers that do not exceed a minimum market share of covered products sold in or into this State.

Section 30. Producer responsibility program plan.

(a) A producer responsibility organization shall submit to the Agency, in a form and manner prescribed by the Agency, a plan for the development and implementation of a producer responsibility program.

(b) Using objective and measurable criteria whenever possible, a producer responsibility program plan must comply with all of the following:

(1) Describe how the producer responsibility organization will manage and administer a producer responsibility program to meet the organization's obligations under this Act, including a description of how the organization will comply with all of the following:

(A) Support the collection and recycling of covered products that are included on the uniform statewide collection list or as necessary to meet the statewide plastic recycling goal established under Section 125.

(B) Provide for the collection of covered products identified by the Agency under paragraph (2) of subsection (a) of Section 95 and meet convenience and performance standards for those covered products.

(C) Maximize the use of existing infrastructure.

(D) Ensure the responsible management of covered products identified in subsection (g) of Section 20 and other contaminants collected with those covered products.

(E) Establish, calculate, and charge membership fees, including incentives, as described in Section 45.

(F) Encourage producers to make continual reductions in the environmental and human health impacts of covered products through a graduated fee structure as described in Section 45.

(G) Ensure that covered products identified in subsection (g) of Section 20 and collected for recycling, and contaminants collected with those covered products, are managed and disposed of consistent with the goals, standards, and practices required by this Act.

(H) Ensure that covered products collected for recycling will be transferred to responsible end markets, including the following:

(i) The type and general locations of responsible end markets that may use the material collected from covered products in the manufacture of new products.

(ii) Whether any of those responsible end markets are certified for environmental and social sustainability by certification programs approved by the Agency under Section 180.

(iii) How the organization will ensure that responsible management is maintained through final disposition of the covered product.

(iv) Arrangements the producer responsibility organization has made with processors to ensure that covered products identified under paragraph (2) of subsection (a) of Section 95 are recycled at a responsible end market, including any investment intended to be made to support processors.

(I) Ensure that any material that will be marketed for use through a method other than mechanical recycling will be transferred to a responsible end market, including the following:

(i) A description of how the proposed method will affect the ability of the material to be recycled into feedstock for the manufacture of new products.

(ii) A description of how the proposed method will affect the types and amounts of plastic recycled for food and pharmaceutical-grade applications.

(iii) A description of any applicable air, water, and waste permitting compliance requirements.

(iv) An analysis of the environmental impacts of the proposed method compared to the environmental impacts of mechanical recycling, incineration, and landfill disposal as solid waste.

(J) Provide public outreach and education, including the following:

(i) A communications program for responding to questions involving the uniform statewide collection list and recycling services provided under Section 65.

(ii) Outreach to units of local government to ensure information is accurate and consistent across this State.

(iii) Statewide promotional campaigns as described in Section 60.

(2) Identify and provide contact information for the producer responsibility organization and identify each producer registered with the proposed program.

(3) Describe the structure of the producer responsibility organization, including the management structure and roles and functions of committees.

(4) Describe how the producer responsibility organization will communicate and coordinate with the Agency, the Illinois Recycling System Advisory Council, units of local government, unit of local government service providers, processors, and any other producer responsibility organizations and the topics of communication or coordination.

(5) Describe a process, including the process timeline, for how the producer responsibility organization will resolve any disputes involving compensation of units of local government and unit of local government service providers under Section 55 and disputes involving commingled recycling processing facilities under Sections 105 and 110.

(6) Include projections on recycling rates for plastic.

(7) Describe any efforts the producer responsibility organization will make to support collection, processing, or responsible recycling of specifically identified materials, including the following:

(A) Any efforts to support or provide recycling depots or mobile collection of specifically identified materials.

(B) Any efforts to use education and promotion to encourage proper participation in recycling collection of specifically identified materials.

(C) Any investments to support the successful processing of specifically identified materials.

(D) Any efforts to develop or support responsible end markets for specifically identified materials.

(E) Any other efforts to ensure successful and responsible recycling of specifically identified materials.

(8) Describe the membership fee structure of the producer responsibility organization, including a schedule of the membership fees actually charged to members.

(9) Demonstrate that the membership fees collected by the producer responsibility organization will provide adequate revenue to fund all costs associated with the producer responsibility program.

(10) For any program plan submitted by a producer responsibility organization following its initial program plan, describe how adjustments to membership fees offered in response to the requirements of Section 45 have been modified in order to meet the objectives described in subparagraph (F) of paragraph (1) of this subsection and Section 45 or in response to any evaluation conducted under Section 50 during the time period covered by the prior program plan.

(11) Describe how the producer responsibility organization will provide funding to allow units of local government to protect ratepayers from increased costs associated with the processing and marketing of recyclables identified in Section 95.

(12) Include a process for promptly notifying the Agency, the Illinois Recycling System Advisory Council, and producers of potential noncompliance with the requirements of this Act by a producer or producer responsibility organization.

(13) Describe reserve funds or other contingency plans for responding to changes in markets or other circumstances that could affect the effectiveness of the program, including the amount of funds in reserve and a description of what contingencies those reserve funds will be sufficient to address.

(14) Include a closure plan to settle the affairs of the producer responsibility organization that ensures that producers will continue to meet their obligations in the event of dissolution of the organization and that describes a process for notifying the Agency, the Illinois Recycling System Advisory Council, and units of local government of the dissolution. The closure plan must include sufficient reserve funds to allow the producer responsibility organization to satisfy all obligations until producer members have joined a different producer responsibility organization.

(15) Include methods for advance funding, reimbursements, and making payments to units of local government or unit of local government service providers under Section 55.

(16) Describe how the producer responsibility organization will implement the requirements of Section 55 by establishing the following:

(A) A schedule for implementing collection program expansions and improvements throughout this State.

(B) A method for determining funding or reimbursement amounts under subsection (f) of Section 55, consistent with rules adopted by the Agency.

(C) The total amount of funds that will be made available to units of local government under Section 55 each year.

(17) Include any other information required by the Agency to determine that a producer responsibility organization is capable of meeting its obligations and ensuring the outcomes required under this Act.

(c) Upon approval of the plan or a plan amendment by the Agency, a producer responsibility organization must implement the approved plan or plan amendment.

Section 35. Approval by the Agency.

(a) The Agency shall approve, approve with conditions, or reject a plan submitted under Section 30 or an amendment to a plan submitted under Section 40 no later than 120 days after the date on which the Agency receives the plan or plan amendment from the producer responsibility organization. The Agency shall approve a plan or a plan amendment if the Agency determines to the satisfaction of the Agency that the plan or plan amendment complies with the requirements of Section 30. If the Agency rejects the plan or plan amendment, the Agency shall provide in writing the reason for the rejection.

If the Agency rejects a plan or plan amendment under this subsection, the producer responsibility organization must submit a revised plan or revised plan amendment to the Agency no later than 60 days from the date of the rejection. The Agency shall either approve, approve with conditions, or reject the revised plan or revised plan amendment no later than 90 days after receiving the revised plan or revised plan amendment. The Agency shall approve the revised plan or plan amendment if the Agency determines that the revised plan or plan amendment complies with the requirements of Section 30. If the Agency rejects the revised plan or revised plan amendment, the Agency shall provide in writing the reason for the rejection and: (i) direct changes to the revised plan or plan amendment; or (ii) require the producer responsibility organization to submit a second revision no later than 60 days after the date of the rejection.

If the Agency directs changes to a revised plan or plan amendment pursuant to this subsection, the producer responsibility organization must implement the changes or request a hearing under the Illinois Administrative Procedure Act.

The Agency may bring an enforcement action if the Agency requires a second revision pursuant to this subsection and: (i) the second revision is not timely submitted; or (ii) the second revision does not, to the satisfaction of the Agency, comply with the requirements of Section 30.

If a producer responsibility organization requests a hearing or is subject to enforcement pursuant to this subsection, the producer responsibility organization shall continue to implement a previously approved plan or, if there is no previously approved plan in place, implement a plan at the direction of the Agency until a plan is approved under this Section.

(b) Before approving, approving with conditions, or rejecting a plan or plan amendment under this Section, the Agency shall solicit feedback on the plan or plan amendment from the Illinois Recycling System Advisory Council. The Agency must make the plan or plan amendment available for public comment for a period of not less than 30 days before approving, approving with conditions, or rejecting the plan or plan amendment. The Agency must respond to the council's written recommendations if received within 75 days after the date the Agency transmitted the plan or plan amendment to the council.

(c) A plan approved by the Agency under this Section is valid for 3 years. The Agency's rejection of a plan or plan amendment submitted for approval under this Section does not relieve the producer responsibility organization from continuing to implement the producer responsibility program in compliance with the approved plan pending a final action by the Agency on the plan amendment.

(d) No less than 180 days before a plan approved under this Section expires, a producer responsibility organization shall submit a plan to be approved under this Section for an additional 5 years. A plan submitted for approval under this subsection must satisfy the requirements of Section 30 and describe any substantive changes from the previously approved plan. Until a plan submitted under this subsection is approved, the previously approved plan remains in effect.

Section 40. Producer responsibility program plan amendments.

(a) A producer responsibility organization shall submit an amendment to a producer responsibility program plan as follows:

(1) When proposing to change an approved producer responsibility program plan as it relates to the producer responsibility organization's obligations:

(A) under paragraphs (1), (7) through (9), (12) through (14), (16), and (17) of Section 30; or

(B) under Section 95.

(2) When changing methods used to establish membership fees under Section 45.

(3) When changing methods of compensating units of local government or unit of local government service providers as required under Section 55.

(4) When the Agency identifies or removes one or more specifically identified materials under Section 100.

(5) When required to do so under Section 125.

(6) When required to do so by rules adopted by the Agency.

(b) Not less than once per calendar quarter, a producer responsibility organization shall provide written notice to the Agency and the Illinois Recycling System Advisory Council of any changes made during the previous month to a producer responsibility program plan that are changes for which an amendment is not required under subsection (a).

Section 45. Membership fees charged by producer responsibility organization.

(a) A producer responsibility organization shall establish a schedule of membership fees to be paid by members of the organization. Membership fees established pursuant to this Section must be sufficient to meet the financial obligations of the organization under this Act. Membership fees must be designed to differentiate between types of covered products and the materials and formats that comprise those covered products. Membership fees charged for different covered product types, materials, and formats must be proportional to the costs to the producer responsibility organization for that covered product type, material, or format.

(b) A schedule established under this Section must establish material-specific base fee rates for all covered products sold or distributed in or into this State by a member of the producer responsibility organization. The base fee paid by each producer member shall be calculated by multiplying the material-specific base fee rate by the total amount of covered products of each material sold or distributed by the producer in or into this State.

(c) Covered products sold or distributed in or into this State that are not accepted by recycling collection programs in this State shall be assessed base fee rates as follows:

(1) First, the average base fee rates for covered products described in this subsection must be higher than the average for covered products that are accepted by recycling collection programs in this State.

(2) Second, provided that the requirements of paragraph (1) of this subsection are satisfied, the base fee rate shall be approximately proportional to the covered products' relative contribution to the financial obligations of the producer responsibility organization.

(d) In addition to the base fees described in subsections (b) and (c), a producer responsibility organization's membership fee schedule must incentivize producers to continually reduce the environmental and human health impacts of covered products by offering fee adjustments to producers that make or have made changes to the ways in which they produce, use, and market covered products. Fee adjustments developed under this subsection must include lower fees for covered products with a lower environmental impact and higher fees for covered products with a higher environmental impact. In establishing the criteria for the graduated fee structure, a producer responsibility organization must consider factors that include, but are not limited to, the following:

(1) The post-consumer content of the material, if the use of post-consumer content in the covered product is not prohibited by federal law.

(2) The product-to-package ratio.

(3) The producer's choice of material.

(4) Life cycle environmental impacts, as demonstrated by an evaluation performed in accordance with Section 155.

(5) The recycling rate of the material relative to the recycling rate of other covered products.

(e) Notwithstanding subsections (b) through (d), a producer responsibility organization may propose to the Agency in a plan or plan amendment an alternative membership fee structure. The Agency may approve an alternative membership fee structure if the Agency determines that the structure:

(1) satisfies the requirements of subsection (a); and

(2) provides incentives to members to change the way the members produce, use, and market materials in order to reduce environmental impacts.

(f) Notwithstanding subsections (b) through (d), a producer responsibility organization shall establish uniform membership fees for members that had a gross revenue of less than $10 million for the organization's most recent fiscal year, or sold in or into Illinois less than 5 metric tons of covered products for use in this State in the most recent calendar year.

(g) A producer responsibility organization shall accept the value of print and online advertising services in lieu of all or a portion of a membership fee described in this Section from members that are newspaper or magazine publishers. The producer responsibility organization may consider the in-State reach of the advertising when determining the value of the advertising.

Section 50. Annual report.

(a) No later than July 1 of each year, a producer responsibility organization must submit to the Agency for approval by the Agency an annual report on the development, implementation, and operation of the producer responsibility program. The annual report must:

(1) cover the prior calendar year;

(2) present information in a manner that can be understood by the general public; and

(3) be otherwise prepared in the form and manner prescribed by the Agency.

(b) The annual report must include the following:

(1) A list of the producers that participated in the producer responsibility program.

(2) A list of any producers found to be out of compliance with the producer responsibility program plan and steps taken to bring those producers into compliance.

(3) The total amount, by weight and type of material, of covered products sold or distributed in or into this State by participating producers in the prior calendar year.

(4) A description of the producer responsibility organization's efforts, including work with processors, to ensure that the collected covered products were responsibly managed and delivered to responsible end markets.

(5) A complete accounting and summary of payments requested by units of local government and unit of local government service providers and paid by the producer responsibility organization under Section 55.

(6) A description of all expansions and improvements to recycling collection systems that have been paid for by the producer responsibility organization, whether those expansions or improvements have been implemented, the funds provided for such expansions and improvements, and what collection programs are still scheduled for expansions or improvements in the remaining duration of the producer responsibility program plan.

(7) A summary of payments paid by the producer responsibility organization under Sections 105 and 110.

(8) A summary of payments requested by units of local government or unit of local government service providers that were denied or reduced by the producer responsibility organization.

(9) A summary of all other payments made to satisfy the producer responsibility organization's obligations under this Act, including, but not limited to, payments made to support responsible recycling of specifically identified materials, as described in Section 100.

(10) A summary of the financial status of the producer responsibility organization, including annual expenditures, revenues, and assets.

(11) The membership fee schedule described in Section 45.

(12) The fees collected pursuant to the membership fee schedule for the reporting year.

(13) A description of how the current membership fee schedule meets the requirements of Section 45.

(14) A description of activities undertaken by the producer responsibility organization that relate to the uniform statewide collection list and the specifically identified materials list.

(15) An assessment of whether the producer responsibility organization has met collection targets, convenience standards and performance standards established by the Agency under Section 95 and efforts planned to meet or continue meeting such targets and standards.

(16) A summary of efforts taken by the producer responsibility organization to meet the statewide plastic recycling goal established under Section 125 and efforts planned to maintain performance in meeting the goal or, if the goal has not been met, efforts planned to meet the goal.

(17) The results of any in-person site inspections, material tracking, or other audits conducted during the reporting year, including whether any major safety or environmental management practices were not properly followed and, if so, the corrective actions taken.

(18) Recommendations for any changes to the producer responsibility organization's plan to improve recovery and recycling.

(19) A summary of the quarterly reports described in subsection (f) and an evaluation of the adequacy of responsible end markets.

(20) A summary of actions actually taken or planned by the producer responsibility organization to improve responsible end markets, pay for improvements in processing infrastructure, or improve the resiliency of the producer responsibility program.

(21) The number of producers that received each type of membership fee adjustment offered under Section 45 and the amount of covered products, by material and format, for which producers received each type of adjustment.

(22) An evaluation of the effectiveness of membership fee adjustments at encouraging producers to reduce the environmental and human health impacts of covered products, with relation to the factors and criteria used by the producer responsibility organization's membership fee structure.

(23) An evaluation of the producer responsibility organization's compliance with this Act and, if necessary, actions that will be taken to achieve compliance.

(24) A report by an independent certified public accountant, retained by the producer responsibility organization at the organization's expense, on the accountant's audit of the organization's financial statements.

(25) The results of any nonfinancial audits or assessments measuring performance or outcomes.

(26) A description of activities undertaken by the producer responsibility organization that relate to the educational resources and promotional campaigns described in Section 60.

(27) Any other information required by the Agency.

(c) A producer responsibility organization shall include in a report submitted under this Section a confidential addendum containing information on the membership fees paid to the producer responsibility organization by individual members and information that can be used to calculate the market share of individual members in accordance with rules adopted by the Agency under Section 20. Information included in the confidential addendum is not subject to public disclosure under the Freedom of Information Act, except that the Agency may disclose summarized information or aggregated data if the information or data do not directly or indirectly identify the amount of membership fees paid by or market share of any individual producer.

The report must also aggregate and summarize the information described in this subsection in a manner that does not directly or indirectly identify the amount of membership fees paid by any individual producer.

(d) The Agency shall review reports submitted under this Section and solicit feedback on each report from the Illinois Recycling System Advisory Council. The Agency shall make each report available for public comment for a period of not less than 30 days. The Agency shall submit the comments of the Agency, the council, and the public to the producer responsibility organization. The Agency shall approve reports that meet the requirements of this Section to the satisfaction of the Agency.

(e) If the Agency does not approve a report under subsection (d), the Agency must provide the producer responsibility organization with written notice of revisions necessary for approval and the timeline for resubmittal.

The Agency may bring an enforcement action if:

(1) the revised report required under this subsection is not timely submitted; or

(2) the revised report does not meet the requirements of this Section to the satisfaction of the Agency.

(f) No later than 45 days after the end of each calendar quarter, a producer responsibility organization shall provide a materials disposition report to the Agency describing the final disposition during that calendar quarter of all materials for which the organization is responsible. The report required under this subsection must include the following:

(1) The final end markets of the materials.

(2) The location of all facilities used to process the materials.

(3) A description of any disposition that does not meet the standards described in subsection (b) of Section 65.

(4) The amount of materials processed and the final disposition by weight or volume of all materials, including materials that were not used by the end markets.

Section 55. Compensation to units of local government and unit of local government service providers.

(a) A producer responsibility organization shall, upon request, fund in advance or reimburse, as appropriate, the eligible expenses of a unit of local government or the unit of local government service provider for eligible costs as provided in this Section.

(b) The costs of transporting covered products from a recycling depot or recycling reload facility to a commingled recycling processing facility or a responsible end market, including the cost to receive, consolidate, load, and transport covered products, are eligible costs for funding or reimbursement by a producer responsibility organization.

Eligible costs under this subsection do not include costs for the following:

(1) The transport of covered products directly from a generator to a recycling processing facility or a responsible end market.

(2) The transport of covered products from a recycling depot if the recycling depot is not designated or authorized by a unit of local government as part of the recycling program operated by the unit of local government or the unit of local government's service provider.

(3) The proportion of a shipment of recyclable material that is not covered products.

(4) The transport of covered products for distances greater than the distance to the closest commingled recycling processing facility or responsible end market with capacity to accept the covered products.

(5) The transport of covered products for less than 50 miles or for a greater de minimis distance, as established by the Agency by rule.

The Agency shall establish by rule methods for determining funding or reimbursement amounts under this subsection. Methods may include payments based on zones and must account for proximity to an appropriate commingled recycling processing facility or responsible end market that has capacity to process or recycle the material and other factors that could affect transportation costs.

(c) The costs of periodically evaluating the quality and contamination of collected materials as required by Section 130, if the evaluation occurs at a location other than a commingled recycling processing facility, are eligible costs for funding or reimbursement by a producer responsibility organization.

(d) The costs of contamination reduction programming for residential and commercial customers required by Section 130 and the cost of similar contamination reduction programming provided by unit of local governments not subject to the requirements of Section 130 are eligible costs for funding or reimbursement by a producer responsibility organization.

The Agency shall establish by rule methods for determining funding or reimbursement amounts under this subsection. Rules adopted under this subsection may not require producer responsibility organizations to provide funding or reimbursement of more than $3 per capita per year, based on the population of a unit of local government or, if the unit of local government is a county, the population of the unincorporated area of the county.

(e) Costs associated with the expansion and provision of recycling collection services for covered products as provided in this subsection are eligible costs for funding or reimbursement by a producer responsibility organization.

A unit of local government that commits to expanding recycling opportunities during the needs assessment conducted under subsection (h) is eligible for funding or reimbursements under this subsection. A producer responsibility organization shall work with units of local government to determine the services the unit of local government is requesting and the schedule by which the new program will be implemented, and shall provide funding for the new programs in advance of or concurrent with implementation.

A producer responsibility organization shall provide funding for activities requested by units of local government through the periodic needs assessment conducted under subsection (h).

Eligible costs under this subsection include the following:

(1) For on-route programs, start-up costs, including, but not limited to, trucks, containers, promotional literature and, if necessary and none other is available, a recycling reload facility for reloading recyclables, including any compaction equipment necessary for the recycling reload facility.

(2) For recycling depots, containers, on-site monitoring equipment, site preparation, or other start-up costs and operational costs, including staffing.

(f) The costs of complying with Section 90, to the extent that the use of post-consumer recycled material is more expensive than the lowest priced alternative, are eligible costs for funding or reimbursement by a producer responsibility organization.

(g) The costs associated with other recycling system improvements for covered products as determined by the Agency by rule are eligible costs for funding or reimbursement by a producer responsibility organization.

(h) The Agency shall conduct a statewide needs assessment in partnership with units of local government and unit of local government service providers to determine local interest in expanding collection options and recycling depots in areas not served with those collection opportunities, provided that funds are made available to the local programs for expansion.

The needs assessment shall include a process for units of local government to request services and commit to providing additional services.

The Agency shall periodically repeat the assessment and may conform the timing of the assessment to coincide with the schedule for producer responsibility organizations to submit new producer responsibility program plans.

(i) A unit of local government or the unit of local government service provider requesting reimbursement under this Section shall submit an accounting of its costs to a producer responsibility organization, if the reimbursement is not otherwise determined according to a formula.

(j) A producer responsibility organization shall remit payment for expenses under this Section to a unit of local government or the unit of local government service provider or other person authorized by the unit of local government to receive payment within 60 days after receiving a request for payment. A producer responsibility organization shall provide written notification to the unit of local government of any payments remitted to a person authorized by the unit of local government to receive payment.

(k) The Agency may review or audit the cost accounting and reimbursement request records of a producer responsibility organization, a unit of local government, or the unit of local government service provider that receives payment under this Section.

The Agency shall require a unit of local government or a unit of local government service provider that receives advance funding under this subsection and does not use the moneys for the purposes for which the funding was provided to return the funding to the producer responsibility organization, according to standards established by the Agency by rule.

Information furnished to the Agency under this subsection may be designated confidential. Information designated confidential is not subject to public disclosure under the Freedom of Information Act, except that the Agency may disclose the information in a summarized or aggregate form.

(l) A unit of local government shall identify to the Agency the unit of local government service providers that are authorized to receive funding or reimbursement directly, as described in this Section, from producer responsibility organizations in the annual report required under Section 50.

(m) A unit of local government or unit of local government service provider that has received funds for expansion or improvements to recycling collection under this Section shall report to the producer responsibility organization when the expansion or improvements have been fully implemented. A unit of local government or unit of local government service provider must also report the status of implementation to the producer responsibility organization on an annual basis for any funded collection program that has not been fully implemented, so that the producer responsibility organization may include that information in the annual report required under Section 50.

(n) The disposal of covered products by means of landfilling or incineration may not be an eligible cost for funding or reimbursement by a producer responsibility organization under this Section.

Section 60. Development of educational resources.

(a) A producer responsibility organization, in consultation with the Illinois Recycling System Advisory Council, shall develop educational resources and promotional campaigns to promote the uniform statewide collection list. Resources and campaigns developed under this Section must include, but need not be limited to, the following:

(1) A description of materials identified for recycling as described in Section 95.

(2) Requirements to properly prepare materials for recycling.

(3) Education on the importance of not placing contaminants in commingled recycling collection.

(4) Container signs or decals.

(b) A producer responsibility organization must provide opportunities for units of local government and unit of local government service providers to review and comment on draft materials developed under this Section.

(c) Educational resources and campaigns developed under this Section must be:

(1) culturally responsive to diverse audiences across this State, including people who speak languages other than English and persons with disabilities;

(2) printed or produced in languages other than English; and

(3) accessed easily and at no cost to units of local government and users of the recycling system.

(d) A producer responsibility organization shall make the educational resources developed under this Section available in a form that allows each unit of local government or unit of local government service provider to customize the resources to reflect local conditions.

(e) When reviewing and commenting on a producer responsibility organization's draft materials under subsection (b), a unit of local government must take responsibility to ensure that the educational resources and campaigns being developed by the producer responsibility organization meet the needs of diverse audiences within the unit of local government's community.

(f) A unit of local government that provides the opportunity to recycle or the unit of local government service provider shall utilize and distribute educational resources developed under this Section.

A unit of local government or the unit of local government service provider may incorporate the educational resources developed under this Section into an existing recycling education program required by the Agency.

(g) A producer responsibility organization shall coordinate and fund the distribution of statewide promotional campaigns developed under this Section through media channels that may include, but need not be limited to, print publications, radio, television, the Internet, and online streaming services.

A producer responsibility organization must coordinate and fund the distribution of statewide promotional campaigns following the first establishment of the uniform statewide collection list and after each revision of the uniform statewide collection list, but not more frequently than once per calendar year.

(h) Except as provided in the second paragraph of this subsection, educational resources and campaigns developed under this Section must be reviewed by the council and approved by the Agency before public distribution.

Changes or alterations to educational resources and campaigns previously approved by the Agency that do not materially affect the substance of the information conveyed do not require review or approval under this subsection.

(i) Educational resources developed under this Section must be updated no later than 4 months following any subsequent changes made by the Agency to the uniform statewide collection list.

Section 65. Other duties of producer responsibility organization.

(a) A producer responsibility organization must provide for the collection and responsible recycling of covered products identified by the Agency under paragraph (2) of subsection (a) of Section 95, in a way that meets collection targets, convenience standards, and performance standards established under Section 95, by any of the following:

(1) Where possible, first contracting with existing recycling depots or drop off centers to provide for the collection of the covered product.

(2) Establishing and operating other drop off centers for the covered product.

(3) Establishing and operating collection events for the covered product.

(4) Making other arrangements for the collection of the covered product as described in a producer responsibility program plan.

(b) A producer responsibility organization shall, to the extent practicable, ensure that covered products collected in this State for the purpose of recovery and described in subsection (g) of Section 20 will be:

(1) delivered to responsible end markets;

(2) managed according to the following hierarchy of materials management options:

(A) first, to reduce the amount of solid waste generated;

(B) second, to reuse material for the purpose for which it was originally intended;

(C) third, to recycle material that cannot be reused;

(D) fourth, to compost material that cannot be reused or recycled;

(E) fifth, to recover energy from solid waste that cannot be reused, recycled, or composted so long as the energy recovery facility preserves the quality of air, water, and land resources; and

(F) sixth, to dispose of solid waste that cannot be reused, recycled, composted, or from which energy cannot be recovered by landfilling or other method approved by the Agency; and

(3) managed in an environmentally protective way through to final disposition.

(c) A producer responsibility organization may not take possession of covered products from a processor for any purpose without the written consent of the processor.

Section 70. Illinois Recycling System Advisory Council.

(a) The Illinois Recycling System Advisory Council is established.

(b) The council shall consist of 19 members appointed as follows:

(1) The President of the Senate shall appoint one member from among the members of the Senate, and the Speaker of the House of Representatives shall appoint one member from among members of the House of Representatives, but the members appointed under this paragraph may not be from the same political party.

(2) The Governor shall appoint 17 members as follows:

(A) Four representatives of unit of local governments.

(B) Two representatives of community-based organizations representing the interests of historically underserved groups.

(C) One owner or operator of a small business that is not eligible for representation under subparagraph (E) or (F) of this paragraph.

(D) Two representatives of environmental nonprofit organizations.

(E) Four representatives of the recycling industry, including unit of local government service providers, processors, or material end users.

(F) Four representatives of producers of covered products or producer trade associations or suppliers. Any members appointed to the council under this subparagraph who are producers of covered products shall belong to a producer responsibility organization and represent different industries.

The Governor shall appoint members that reflect the geographic diversity of this State and the interests of both large and small communities.

(c) The term of office of each member of the council is 3 years, but members who are not legislators serve at the pleasure of the Governor.

Before the expiration of the term of a member, the appointing authority shall appoint a successor whose term begins on July 1 following the appointment. A member is eligible for reappointment.

If there is a vacancy for any cause, the appointing authority shall make an appointment to become immediately effective for the unexpired term.

(d) A majority of the voting members of the council constitutes a quorum.

(e) The council shall elect one of its members to serve as chairperson and another to serve as vice chairperson, for the terms and with the duties and powers necessary for the performance of the functions of such offices as the council determines. The chairperson and vice chairperson may not both be members appointed under the same subparagraph of paragraph (2).

(f) The council shall meet at least once every 3 months at times and places specified by the chairperson. The council also may meet at other times and places specified by the call of the chairperson or of a majority of the voting members of the council, as necessary, to carry out the duties of the council.

(g) The Agency shall provide administrative and staff support and facilities as necessary for the council to carry out the duties of the council.

(h) A member of the council who is not a legislator is entitled to compensation and expenses incurred in performing their duties. Claims for compensation and expenses incurred in performing functions of the council shall be paid out of funds appropriated to the Agency for that purpose.

(i) Members of the General Assembly who are appointed to the council are nonvoting members of the council and may act in an advisory capacity only.

(j) The council may adopt rules necessary for the operation of the council.

Section 75. Duties of the council.

(a) The Illinois Recycling System Advisory Council shall perform all of the following:

(1) Review activities related to this Act.

(2) Advise the Agency and producer responsibility organizations on issues related to the implementation of this Act.

(3) Review producer responsibility program plans submitted under Section 30, plan amendments submitted under Section 40, and program reports submitted under Section 50.

(4) Make recommendations to the Agency and producer responsibility organizations related to the establishment and maintenance of the list of specifically identified materials.

(5) Make recommendations to the Agency and producer responsibility organizations about any other material that should not be included as a covered product.

(6) Make written recommendations to the Agency and producer responsibility organizations on matters that the council determines are beneficial to the public interest, including the following:

(A) Matters related to producer responsibility program plans created to satisfy the requirements of Section 30, program plan audits, and reports required by the plans, including the following:

(i) Producer membership fee structures described in Section 45.

(ii) Recycling depot or mobile collection events for recyclable items.

(iii) Other aspects of a producer responsibility program intended to improve access to recycling, including access for residents of multifamily housing.

(B) The uniform statewide collection list.

(C) The manner in which producer responsibility organization fees will be distributed to units of local governments or unit of local government service providers under Section 55, including the following:

(i) Review of statewide transportation, reload reimbursement, and other formulaic elements.

(ii) Priorities for system funding where discretion is provided in statute or in rules adopted by the Agency.

(D) Statewide educational resources and campaigns.

(E) The manner in which producer responsibility organization fees will be distributed to processors to improve infrastructure.

(b) The council may only adopt recommendations upon a vote of a majority of the members of the council.

(c) No later than September 15 of each even-numbered year, the council shall submit to the Senate Committee on Environment and Conservation and the House Committee on Energy and Environment a report that describes the recommendations of the council.

(d) Within 45 days after receiving written recommendations from the council under paragraphs (4), (5), and (6) of subsection (a), a producer responsibility organization must provide a written response to the council, including reasons why any recommendations were not accepted.

(e) Within 60 days after receipt of written recommendations provided under paragraphs (4), (5), and (6) of subsection (a), the Agency shall provide a written response to the council, including reasons why any recommendations were not accepted.

Section 80. Prohibition on delivery of commingled recyclables to certain facilities.

(a) As used in this Section, "commingled recycling reload facility" means a facility that receives commingled recyclables collected by a unit of local government or unit of local government service provider as an intermediate step prior to delivery to a commingled recycling processing facility.

(b) A unit of local government, the unit of local government service provider, or a commingled recycling reload facility may not deliver to a commingled recycling processing facility commingled recyclables that were collected pursuant to the uniform statewide collection list established under Section 95, unless the following apply:

(1) At the time the unit of local government, the unit of local government's service provider, or the commingled recycling reload facility delivered or contracted to deliver or transport materials to the commingled recycling facility:

(A) the commingled recycling facility held a valid permit issued under Section 175; or

(B) for a commingled recycling facility located outside of this State:

(i) the facility held a valid certificate issued under Section 180; or

(ii) the facility certified that it otherwise met the requirements of Section 175 or 180, even though the facility did not hold a permit or certificate.

(2) The processor ensures the health, safety, and wellness of workers at the facility regardless of whether the workers are employees, independent contractors, or employees of another business.

(3) The processor provides workers at the facility with a living wage and supportive benefits, as defined by rule by the Agency.

(4) Within 6 months after the Agency completes a report under subsection (c) of Section 135, the commingled recycling processing facility has taken steps to implement any recommendations of the report related to providing opportunities in the recycling industry for women and minority individuals.

Section 85. Other duties of units of local government. A unit of local government providing the opportunity to recycle must, for the recycling collection of materials identified on the uniform statewide collection list at multifamily properties, comply with all of the following:

(1) Ensure adequate space for collection.

(2) Demonstrate a plan to ensure adequate space and access for collection vehicles after new construction or significant remodels.

(3) Update or establish service standards for service providers to provide adequate service volume or collection frequency, or a combination of both.

(4) Ensure that container placement is accessible to residents, including children and individuals who use a wheelchair.

(5) Report on activities to meet the requirements of this Section in the annual report required under Section 50.

Section 90. Roll carts. A unit of local government shall ensure that roll carts, bins, and containers purchased by the unit of local government's service providers are manufactured from at least 10% post-consumer recycled material and are certified by an independent verification standard, such as the APR Post Consumer Resin (PCR) Certification Program established by the Association of Plastic Recyclers.

Section 95. Uniform statewide collection list and producer-collected materials.

(a) The Agency, in consultation with producer responsibility organizations and the Illinois Recycling System Advisory Council, shall by rule identify materials that are suitable for recycling collection in this State and the methods for collection of those materials. Rules adopted under this subsection must distinguish between the following:

(1) Materials collected to provide the opportunity to recycle.

(2) Covered products of which a producer responsibility organization must provide for the collection through recycling depot or mobile collection events as provided in Section 65.

(b) When identifying materials and collection methods under paragraph (1) of subsection (a), the same material may be collected via on-route collection or at recycling depots in different geographic areas, as determined by units of local government.

(c) In determining whether a material should be included in a commingled recycling program for the uniform statewide collection list, collected separately, collected on-route, or collected at a recycling depot, or whether a covered product should be collected by a producer responsibility organization under paragraph (1) of subsection (a), the Agency shall consider the following:

(1) The stability, maturity, accessibility, and viability of responsible end markets.

(2) Environmental health and safety considerations.

(3) The anticipated yield loss for the material during the recycling process.

(4) The material's compatibility with existing recycling infrastructure.

(5) The amount of the material available.

(6) The practicalities of sorting and storing the material.

(7) Contamination.

(8) The ability for waste generators to easily identify and properly prepare the material.

(9) Economic factors.

(10) Environmental factors from a life cycle perspective.

(d) The Agency shall establish and maintain a uniform statewide collection list of materials that are appropriate to be collected through a commingled recycling program. The list established under this subsection must include the following:

(1) The materials identified by the Agency as suitable for commingled recycling under paragraph (1) of subsection (a) and subsection (b).

(2) Covered products if any, proposed by a producer responsibility organization for addition to the uniform statewide collection list in a producer responsibility program plan or plan amendment and approved by the Agency under Section 35.

(e) Except as provided in subsection (f), a material may not be collected as part of a commingled recycling program unless the material is identified for collection as part of a commingled recycling program on the uniform statewide collection list.

(f) A material that is not identified for collection as part of a commingled recycling program on the uniform statewide collection list may be collected as part of a commingled recycling program if:

(1) the material is collected as part of a trial or research program;

(2) the trial or research program is of limited duration; and

(3) the trial or research program is conducted in a limited area.

(g) The Agency shall establish by rule collection targets, convenience standards, and performance standards for producer responsibility organizations that collect covered products identified by the Agency under paragraph (2) of subsection (a).

Section 100. Specifically identified materials.

(a) The Agency, in consultation with producer responsibility organizations and the Illinois Recycling System Advisory Council, shall establish and maintain a list of specifically identified materials.

(b) In determining whether a covered product is a specifically identified material, the Agency shall consider criteria that include, but need not be limited to, the following:

(1) Whether recycling processing equipment improvements are needed to sort the material and when producer responsibility organizations will fund those improvements.

(2) The availability of viable responsible end markets for the material.

(3) Economic factors affecting the value of the material.

(4) Whether the inclusion of the covered product in recycling collection programs could cause an increase in costs.

Section 105. Contamination management fee.

(a) The Agency shall by rule adopt and periodically revise a contamination management fee to be paid by producer responsibility organizations to commingled recycling processing facilities to compensate the facilities for the costs of removing and disposing covered products that are contaminants. The amount of the fee shall be based on the result of the study conducted under subsection (b). Rules adopted under this Section must:

(1) provide that payment of the fee may not be required more frequently than once per month and must be paid within 45 days after a request for payment;

(2) provide that the fee may not be based on commingled recycling originating outside of Illinois; and

(3) establish a review process to ensure that the fee is appropriately charged.

(b) The Agency shall contract with an independent organization to conduct the study under this subsection. The study must:

(1) estimate the cost to commingled recycling processing facilities of removing and disposing of covered products that are contaminants, reported as the cost per ton of covered products; and

(2) Estimate the costs to commingled recycling processing facilities of removing and disposing of all contaminants, reported as the cost per ton of all contaminants.

(c) A commingled recycling processing facility that does not participate in the review process described in subsection (a) or the study described in subsection (b) is not eligible to receive a contamination management fee.

(d) Any proprietary information provided to the Agency under subsection (a) or to a person conducting a study under subsection (b) may be designated confidential by a commingled recycling processing facility. Information designated confidential is not subject to public disclosure under the Freedom of Information Act, except that information may be disclosed as summarized or aggregated data if doing so does not directly or indirectly disclose the proprietary information of any specific facility.

(e) The Agency shall review the contamination management fee at least once every 5 years. The Agency may not review the contamination management fee more frequently than once per year.

Section 110. Processor commodity risk fee.

(a) In this Section:

"Anticipated program cost" means all additional costs related to any new requirements of this Act that are anticipated prior to the next review of the processor commodity risk fee under subsection (f).

"Average commodity value" means the average revenue paid by brokers or end markets, after processing by a commingled recycling processing facility, for a composite ton of commingled material collected for recycling in Illinois.

"Eligible processing cost" means all costs associated with owning and operating a commingled recycling processing facility as determined by the study conducted under subsection (c), including, but not limited to, sorting, handling, storing, disposal, marketing, and shipping, administration, rent, fees, depreciation, fixed costs, profit, the target price paid for commingled recycling collected from Illinois as described in paragraph (4) of subsection (b), and anticipated program costs.

"Eligible processing cost" does not include revenue from the sale of recyclables and any costs that are reimbursed by producer responsibility organizations or other parties, including the contamination management fee established under Section 105.

(b) The Agency shall by rule adopt and periodically revise a processor commodity risk fee to be paid by producer responsibility organizations to commingled recycling processing facilities to ensure that producers share in the costs of fully processing commingled recyclables that are covered products and to allow units of local government to reduce the financial impacts on ratepayers. The processor commodity risk fee shall be based on the eligible processing costs of facilities less the average commodity value of recyclable materials processed by facilities. Rules adopted under this Section must comply with the following:

(1) Provide that payment of the fee may not be required more frequently than once per month and must be paid within 45 days after a request for payment.

(2) Provide that the fee may not be based on commingled recycling originating outside of Illinois.

(3) Establish a review process to ensure that the fee is appropriately charged.

(4) For purposes of calculating the processor commodity risk fee, allow the average fee charged by commingled recycling processing facilities for acceptance of commingled recyclables collected from Illinois to target a price of $0 per ton, expressed on the basis of compensation per ton of delivered material.

(5) Provide that the fee is to be paid on the basis of recyclable material received by or sold from a commingled recycling processing facility.

(6) Ensure that materials handled by more than one commingled recycling processing facility are not double counted for purposes of calculating the fee.

(7) Allow units of local government to protect ratepayers from cost increases associated with the volatility of commodity markets.

(8) Establish methods to determine and periodically update, but no more frequently than once per month, the average commodity value per ton of commingled materials collected from single-family residences in Illinois and from all other sources in Illinois. The methods developed under this paragraph must include the following:

(A) The average composition of materials by percentage in each mix, multiplied by published market values.

(B) The sources of the published market values used.

(C) Any adjustments to published market values for each commodity to reflect conditions in Illinois.

(c) Subject to subsection (f), the Agency shall contract with an independent organization to conduct the study under this subsection. The study must:

(1) estimate the average eligible processing cost at commingled recycling facilities that process commingled recycling generated in Illinois; and

(2) report the costs on the basis of tons of commingled recycling received and materials shipped to end markets.

(d) A commingled recycling facility that does not participate in the review process described in subsection (b) or the study described in subsection (c) is not eligible to receive a processor commodity risk fee.

(e) Any proprietary information provided to the Agency under subsection (b) or to a person conducting a study under subsection (c) may be designated confidential by a commingled recycling processing facility. Information designated confidential is not subject to public disclosure under the Freedom of Information Act, except that information may be disclosed as summarized or aggregated data if doing so does not directly or indirectly disclose the proprietary information of any specific facility.

(f) The Agency shall contract for the study under subsection (c) to be performed at least once every 5 years. The Agency may contract for the study under subsection (c) to be performed no more than once per year. If a study under subsection (c) demonstrates that the average per-ton eligible processing cost has changed by more than 10% since the Agency last established the processor commodity risk fee, the Agency shall by rule revise the processor commodity risk fee.

Section 115. Evaluation of federal laws.

(a) The Agency shall evaluate any federal law that establishes a national program for the collection and recycling of paper products or packaging.

(b) If the Agency determines that the federal law substantially meets or exceeds the requirements and intent of this Act, the Agency shall include information on the federal law in a report to the General Assembly.

Section 120. Litter and marine debris cleanup and prevention needs assessment.

(a) The Agency shall conduct a statewide needs assessment to identify the contribution of different types of covered products to litter and marine debris in Illinois, the general locations where litter and marine debris prevention and cleanup of covered products is needed, and the extent to which litter and marine debris prevention and cleanup is needed.

(b) The needs assessment may include recommendations for adding litter and marine debris cleanup and prevention to the responsibilities of producer responsibility organizations and recommendations for funding such responsibilities. If the needs assessment does not include recommendations for adding new responsibilities for producer responsibility organizations, the report required under subsection (d) must include an explanation of why such responsibilities are not needed to address the issue of litter and marine debris.

(c) In conducting the needs assessment, the Agency shall consult with units of local government, the Department of Transportation, the Department of Natural Resources, producer responsibility organizations, and the Illinois Recycling System Advisory Council.

(d) The Agency shall provide a written report on its findings and recommendations for legislation to the Senate Committee on Environment and Conservation and the House Committee on Energy and Environment no later than September 15, 2026.

Section 125. Recycling rate of plastic.

(a) In this Section:

"Plastic" means a material composed of synthetic polymers such as polyethylene, polypropylene, polystyrene, polylactic acid, and other similar polymers.

"Plastic" does not include materials commonly referred to as rubber or materials that are naturally produced polymers, such as proteins or starches.

(b) It is the goal of the State of Illinois that the statewide recycling rate for plastic packaging and plastic food serviceware be:

(1) at least 25% by calendar year 2028 and in each subsequent year;

(2) at least 50% by calendar year 2040 and in each subsequent year; and

(3) at least 70% by calendar year 2050 and in each subsequent year.

Notwithstanding the first paragraph of this subsection, the Agency by rule, on or after January 1, 2038, and after consideration of environmental, technical, and economic conditions, may adjust the statewide plastic recycling goal. An adjustment to the statewide plastic recycling goal under this paragraph may not adjust the goal to less than 35% or more than 70%.

(c) The Agency shall annually determine whether the statewide plastic recycling goal established under subsection (b) has been met. The Agency may require a producer responsibility organization to submit aggregated information necessary for the Agency to make the determination under this subsection.

(d) If the Agency determines that the statewide plastic recycling goal has not been met, each producer responsibility organization shall, in the manner provided in Section 40, amend an existing producer responsibility program plan or submit a new producer responsibility program plan that includes actions the organization will take to meet the statewide plastic recycling goal.

Notwithstanding the requirements of the first paragraph of this subsection, the Agency may not issue an order or impose a civil penalty against a producer responsibility organization for failing to update a producer responsibility program plan or failing to take actions specified in a producer responsibility program plan to meet the statewide plastic recycling goal if, at that time, the recycling rate of plastic packaging and plastic food serviceware exceeds 50%.

(e) The recycling rate of plastic packaging and plastic food serviceware is calculated by dividing the total plastic packaging and plastic food serviceware waste generated and recycled in this State by the total plastic packaging and plastic food serviceware waste generated in this State using the following data, unless otherwise specified by rule by the Agency:

(1) Data on recycling from relevant surveys and reports.

(2) Data from relevant waste composition studies, combined with data on the total amount of solid waste disposed.

(3) Information submitted by a producer responsibility organization under subsection (c).

(4) Other information made available to the Agency to estimate changes in the generation of plastic waste in years between the years when waste composition studies are conducted.

(f) For purposes of determining the recycling rate of plastic packaging and plastic food serviceware, "plastic" includes post-consumer packaging and food serviceware products that are made entirely of plastic or that contain small amounts of easily removed nonplastic items, such as metal lids or metal handles on plastic buckets.

Section 130. Contamination reduction.

(a) The Agency shall perform the following:

(1) Establish statewide recycling contamination reduction goals.

(2) Evaluate the relative cost-effectiveness of different educational programs and other methods for reducing contamination.

(3) Establish and maintain a list of approved contamination reduction program elements, including the following:

(A) Customer-facing contamination reduction materials and methods that are responsive to the needs of diverse populations.

(B) Standards for providing feedback to generators that contribute to contamination that is responsive to the needs of diverse populations.

(C) Standards for providing financial or service consequences to generators that are significant and repeated sources of contamination and that continue to contaminate separated recyclables after being subject to elements described in subparagraphs (A) and (B). Consequences must be responsive to the conditions of diverse populations.

(4) Once every 4 years:

(A) review and summarize statewide information on contamination at the point of collection, using data provided in accordance with Section 185, and revise the statewide recycling contamination reduction goals, as appropriate; and

(B) provide a written report to the Senate Committee on Environment and Conservation and the House Committee on Energy and Environment. The report must include:

(i) a description of the effectiveness of the contamination reduction program elements;

(ii) recommendations to maintain, revise, or discontinue programs developed under this Section; and

(iii) recommendations regarding the funding of contamination reduction programming under subsection (d) of Section 55.

(b) A unit of local government or a unit of local government service provider that provides for the collection of source separated recyclables must establish and implement a program to reduce contamination that:

(1) includes one or more local recycling contamination reduction goals that are consistent with the statewide goals established in subsection (a);

(2) causes collected source separated recyclables to undergo periodic evaluation of collected material quality and contamination, in accordance with forms and procedures established by the Agency under Section 185;

(3) includes:

(A) at least one of each of the program elements described in subparagraphs (A) through (C) of paragraph (3) of subsection (a); or

(B) uses materials or methods that are at least as effective as materials or methods approved by the Agency under paragraph (3) of subsection (a); and

(4) includes, at least once every 5 years, a process for reviewing, and revising as appropriate, the local goals established in paragraph (1) and local elements established under paragraph (3).

(c) A unit of local government or unit of local government service provider may not be required to provide contamination reduction programming under this Section to the extent that doing so would require the use of funds other than advance funding or reimbursements available under subsection (d) of Section 55.

Section 135. Equity study.

(a) The Agency, in consultation with units of local government and the Illinois Recycling System Advisory Council, shall conduct a study of equity in Illinois' recycling system to determine conditions and make recommendations, including goals to achieve continuous improvement. The Agency shall provide public involvement opportunities for underserved communities during the study. The study must include, but need not be limited to, the following:

(1) An evaluation of commingled recycling processing facility worker conditions, wages, and benefits.

(2) The availability of opportunities in the recycling system for women and minority individuals.

(3) The sufficiency of unit of local government requirements related to multifamily recycling services and their implementation.

(4) The sufficiency of recycling education programs relative to desired equity outcomes.

(5) The availability of opportunities in the recycling system for Illinois and other Midwest businesses.

(6) Recommendations for improving equity and equitable outcomes for underserved populations in Illinois' recycling system, including recommendations for new responsibilities of producer responsibility organizations and recommendations for funding such responsibilities.

(b) Except as provided in the second paragraph of this subsection, a person operating within the recycling system in this State shall, upon request, furnish the Agency with information necessary for the Agency to meet the requirements of paragraphs (1) and (2) of subsection (a). Proprietary information furnished to the Agency under paragraph (1) of subsection (a) is not subject to public disclosure under the Freedom of Information Act, except that the Agency may disclose summarized information or aggregated data if the information or data do not directly or indirectly identify the proprietary information of any specific person.

This subsection does not apply to any person described as not included in the definition of "commingled recycling processing facility" in Section 10.

(c) The Agency shall complete the study required under this Section at least once every 4 years. The Agency shall report the results of the study and recommendations required under this Section to the Senate Committee on Environment and Conservation and the House Committee on Energy and Environment.

Section 140. Multifamily housing needs assessment.

(a) The Agency, in consultation with the Illinois Recycling System Advisory Council, shall conduct a statewide needs assessment to determine the challenges facing residents of multifamily housing and make recommendations for improvements to allow for effective and equitable recycling opportunities for residents of multifamily housing. The needs assessment conducted under this Section must include an evaluation of the placement of and quality of spaces provided for recycling containers and recommendations for improving spaces that are determined to be inadequate. The needs assessment may include recommendations for new responsibilities of producer responsibility organizations and recommendations for funding such responsibilities. If the needs assessment does not include recommendations for adding new responsibilities for producer responsibility organizations, the report required under subsection (b) must include an explanation of why such responsibilities are not needed to address the challenges facing residents of multifamily housing.

(b) The Agency shall complete the needs assessment required under this Section at least once every 4 years. The Agency shall report the results of the needs assessment and recommendations required under this Section to the Senate Committee on Environment and Conservation and the House Committee on Energy and Environment.

Section 145. Fees.

(a) The Agency shall establish the following fees:

(1) A fixed, one-time fee for reviewing a producer responsibility program plan submitted under Section 30.

(2) Subject to the second sentence of this paragraph, an annual fee charged to each producer responsibility organization for the purpose of paying the costs to the Agency of administering, implementing, and enforcing the provisions of this Act. The costs to the Agency for purposes of this paragraph do not include costs to the Agency for administering, implementing, and enforcing Sections 175, 180, and 185.

(b) The Agency shall provide notice to a producer responsibility organization no later than September 1 of each year of the annual fee required under paragraph (2) of subsection (a) for the upcoming calendar year. Fees collected by the Agency under this Section shall be deposited in the Producer Responsibility Fund established under Section 160.

Section 150. Waste prevention and reuse.

(a) In this Section, "public body" has the meaning given that term in Section 2 of the Freedom of Information Act.

(b) The Agency shall establish a program to reduce the environmental impacts of covered products through means other than waste recovery, including waste prevention and reuse. The Agency may enter into agreements with public bodies to establish a program to reduce the environmental impacts of covered products. The Agency may provide grants or loans in order to reduce the environmental impacts of covered products. Entities eligible for a grant or loan include, but are not limited to, the following:

(1) Public bodies.

(2) Tribal governments.

(3) Nonprofit organizations.

(4) Private organizations, if the Agency determines that the funds would be used for the public benefit.

(c) In providing grants or loans for programs under this Section, the Agency must consider criteria that include, but are not limited to, the following:

(1) The environmental benefits of the program.

(2) The human health benefits of the program.

(3) The social and economic benefits of the program.

(4) The cost-effectiveness of the program.

(5) The needs of economically distressed or underserved communities.

(d) In addition to the fees established under Section 145, the Agency shall establish a waste prevention and reuse fee to be paid by producer responsibility organizations. The fee established under this subsection must be reasonably calculated to support the programs established under this Section. The fee charged to any producer responsibility organization may not exceed 10% of the 3-year average of the organization's annual expenditures, excluding payments of the fee established under this Section, as described in the organizations' annual reports submitted under Section 50. Fees collected under this subsection must be deposited in the Waste Prevention and Reuse Fund established under Section 165.

Section 155. Life cycle evaluation. The Agency shall establish by rule standards for the evaluation and disclosure of the environmental impacts of covered products through the life cycle of the products. Rules adopted under this Section must:

(1) establish procedures and requirements to be used by producers when evaluating the life cycle impacts of covered products to obtain an incentive under Section 45 or when required to do so under paragraph (2); and

(2) require large producers to:

(A) once every 2 years, perform an evaluation of the life cycle impacts of at least 1% of covered products that the large producer sells or distributes in or into this State;

(B) provide the results of the evaluation to the Agency; and

(C) make the evaluation available on the website of the producer responsibility organization of which the large producer is a member.

Section 160. Producer Responsibility Fund. The Producer Responsibility Fund is created as a special fund in the State treasury. The Fund shall consist of moneys deposited into the Fund under Section 145. Moneys in the Fund shall be used by the Agency to implement, administer, and enforce the this Act.

Section 165. Waste Prevention and Reuse Fund. The Waste Prevention and Reuse Fund is created as a special fund in the State treasury. The Fund shall consist of moneys deposited into the Fund under Section 150 and any other moneys deposited into the Fund by the General Assembly. Moneys in the Fund shall be used by the Agency for the purposes described in Section 150.

Section 170. Truth in Labeling Task Force.

(a) The Truth in Labeling Task Force is established.

(b) The task force consists of 15 members appointed as follows:

(1) The President of the Senate shall appoint one member from among members of the Senate.

(2) The Speaker of the House of Representatives shall appoint one member from among members of the House of Representatives.

(3) The Governor shall appoint the following:

(A) Five members to represent producers.

(B) Three members to represent units of local government of different population sizes and geographic locations in this State.

(C) Four members to represent the recycling industry, including unit of local government service providers and processors from different population sizes and geographic locations in this State.

(D) One member to represent the interests of environmental organizations.

(c) The task force shall study and evaluate misleading or confusing claims regarding the recyclability of products made on a product or product packaging. The study must include consideration of issues affecting accessibility for diverse audiences.

(d) A majority of the voting members of the task force constitutes a quorum for the transaction of business.

(e) Official action by the task force requires the approval of a majority of the voting members of the task force.

(f) The task force shall elect one of its members to serve as chairperson.

(g) If there is a vacancy for any cause, the appointing authority shall make an appointment to become immediately effective.

(h) The task force shall meet at times and places specified by the call of the chairperson or of a majority of the voting members of the task force.

(i) The task force may meet using video conferencing technology or through some other electronic or virtual means.

(j) The task force may adopt rules necessary for the operation of the task force.

(k) The task force shall submit a final report and recommendations for legislation to the Senate Committee on Environment and Conservation and the House Committee on Energy and Environment no later than June 1, 2022.

(l) The Agency shall provide staff support to the task force.

(m) Members of the General Assembly appointed to the task force are nonvoting members of the task force and may act in an advisory capacity only.

(n) Members of the task force who are not members of the General Assembly are not entitled to compensation or reimbursement for expenses and serve as volunteers on the task force.

(o) All agencies of State government are directed to assist the task force in the performance of the duties of the task force and, to the extent permitted by laws relating to confidentiality, to furnish information and advice the members of the task force consider necessary to perform their duties.

Section 175. Permit required.

(a) On or after the date established by the Agency under subsection (c), a person may not establish or operate a commingled recycling processing facility in this State unless the person obtains a disposal site permit issued by the Agency.

(b) A disposal site permit issued to a commingled recycling processing facility must require the facility to:

(1) sort all materials collected from the public so that materials do not become contaminants in other waste streams;

(2) market materials to responsible end markets or to another commingled recycling processing facility, provided that the permittee complies with the requirements for a commingled recycling reload facility under Section 80;

(3) manage contaminants to avoid impacts on other waste streams or facilities;

(4) refrain from creating a public nuisance or health hazard, consistent with rules adopted under this Section;

(5) limit air or water pollution or other adverse impacts on public health or the environment, consistent with rules adopted under this Section;

(6) evaluate and report on inbound material quality and contamination, in accordance with forms and procedures established by the Agency under Section 185;

(7) accurately report outbound contamination levels; and

(8) for all materials held by the processor:

(A) accurately report the final end market of the materials; or

(B) obtain a certification that the responsible end markets for the materials meet standards for environmental and social sustainability established by a program approved by the Agency under subsection (c).

Proprietary information on the final end market of materials may be designated confidential by the processor and is not subject to public disclosure under the Freedom of Information Act, except that the Agency or producer responsibility organizations may disclose summarized information or aggregated data if the information or data do not identify the proprietary information of any specific processor.

(c) The Agency shall prescribe by rule the requirements for a permit issued under this Section. Rules adopted under this subsection shall allow for permitted facilities to direct, in response to an emergency failure of critical equipment at their own facility, and on a temporary basis, small amounts of unsorted inbound materials to other recycling processing facilities for sorting and recycling so long as such facilities meet the requirements described in paragraphs (1), (3), and (7) of subsection (b). Rules adopted under this Section may include the following:

(1) A schedule for implementing the requirements of this Section, including the following:

(A) The date by which a person must first obtain a permit required under this Section.

(B) Dates for the implementation of modified standards that a person must meet to satisfy the requirements of this Section, and the accompanying standards.

(2) The identification of approved programs for certifying the environmental and social sustainability of responsible end markets.

Section 180. Certification program.

(a) The Agency shall establish a program or approve a program established by a third party to certify commingled recycling processing facilities located outside of Illinois. The Agency may issue certificates under the program or develop a list of approved contractors to issue certificates.

(b) A commingled recycling processing facility certified under this Section must satisfy the requirements of subsection (b) of Section 175.

Section 185. Contamination.

(a) The Agency shall establish forms and procedures for commingled recycling processing and recycling reload facilities to evaluate and describe levels of inbound contamination.

(b) Information described in subsection (a) shall be provided to the Agency and units of local government or unit of local government service providers responsible for collecting the materials evaluated.

Section 190. Enforcement and record keeping.

(a) The Agency has the power to enter upon and inspect, at any reasonable time, any public or private property, premises, or place for the purpose of investigating either an actual or suspected violation of this Act or rules adopted under this Act.

(b) A producer responsibility organization shall retain all records related to the implementation and administration of a producer responsibility program for not less than 5 years after the time the record was created and make the records available for inspection by the Agency upon request.

(c) In accordance with the applicable provisions of the Illinois Administrative Procedures Act relating to contested case proceedings, the Agency may issue an order requiring compliance with the provisions of this Act.

(d) In accordance with the applicable provisions of the Illinois Administrative Procedures Act relating to contested case proceedings, and in accordance with applicable law, the Agency may issue civil penalties for violations of the provisions of this Act. All penalties recovered for violations of this Act shall be paid into the State Treasury and credited to the Waste Prevention and Reuse Fund established under Section 165.

(e) The Agency may issue an order under subsection (c) to suspend or revoke a producer responsibility program plan if the Agency determines that:

(1) a violation or repeated violations of this Act present a risk to the environment or public health;

(2) a violation has had a material impact on the implementation and administration of the organization's producer responsibility program plan; or

(3) a producer responsibility organization is in violation of subsection (l) of Section 20.

(f) The Attorney General, at the request of the Agency, may bring an action seeking to prohibit the sale of a covered product in or into this State against any producer that sells, offers to sell, or distributes a covered product in or into this State in violation of Section 20.

(g) Any person with control of materials collected under this Act shall retain all records related to the person's responsibilities under this Act for not less than 5 years after the time the record was created and make the records available for inspection by the Agency upon request.

(h) A person required to retain records under subsection (g) shall make the records available to the Agency upon request of a producer responsibility organization if necessary to allow the organization to meet its obligations under this Act.

(i) Proprietary information furnished to the Agency relating to subsections (g) and (h) may be designated confidential. Information designated confidential is not subject to public disclosure under the Freedom of Information Act, except that the Agency may disclose summarized information or aggregated data if the information or data do not directly or indirectly identify the proprietary information of a specific person.

Section 195. Truth in composting.

(a) A person who operates or controls a collection program for yard debris or food waste or that operates or controls a compost facility may not promote for acceptance any material that cannot or will not be effectively composted.

(b) The Agency, or entities approved by the Agency, may conduct research or pilot projects to examine the collection and compostability of materials and to identify materials that can and cannot be effectively composted. A pilot or research project may not exceed 2 years in duration.

(c) Nothing in this Section prevents a composting facility from accepting materials that are not readily compostable and are incidentally collected as part of a collection program.

Section 200. Antitrust. The General Assembly declares that the collaboration of producers through producer responsibility organizations to develop and implement producer responsibility program plans is in the best interests of the public. Therefore, the General Assembly declares its intent that participating in a producer responsibility organization to implement a producer responsibility program plan as required by this Act shall be exempt from State antitrust laws. The General Assembly further declares its intent to provide immunity for participating in a producer responsibility organization to implement a producer responsibility program plan as required by this Act from federal antitrust laws. This Section does not authorize any person to engage in activities or to conspire to engage in activities that constitute per se violations of State or federal antitrust laws that are not authorized under this Act.

Section 205. Rules. The Agency may adopt rules as necessary to implement this Act.

Section 210. State procurement assessment.

(a) The Department of Central Management Services, in consultation with the Agency, shall study and assess State procurement practices as they relate to recycled products, recycled post-consumer polyethylene terephthalate material (PETE), and recycled materials. The assessment must include the following:

(1) An evaluation of State procurement practices related to recycled materials, including efficacy and compliance.

(2) A quantitative evaluation of the impact and effectiveness if a recycled product's costs do not exceed the costs of nonrecycled products by more than 5% price limitation.

(3) A feasibility study of additional opportunities to increase the purchase of products containing post-consumer recycled content, including, but not limited to, products containing post-consumer recycled polyethylene terephthalate material (PETE) and other plastics.

(4) An evaluation of opportunities for strengthening traceability and verification requirements associated with recycled products or recycled materials, especially recycled plastic.

(5) Recommendations for legislation.

(b) The Department of Central Management Services shall provide the results of the assessment in a report to the General Assembly. The Department of Central Management Services shall revise the initial assessment completed under this Section every 5 years.

Section 215. Compostability study.

(a) The Agency shall study the compostability of covered products and the effects of covered products on composting systems. In conducting the study, the Agency shall:

(1) examine the effects of covered products on compost facilities and finished compost;

(2) consider trends, challenges, opportunities, and relevant policies relating to composting and covered products;

(3) consider the experience of compost facilities located in other states; and

(4) develop recommendations for reducing environmental impacts while maintaining and enhancing the environmental and economic sustainability of Illinois' compost industry.

(b) In conducting the study, the Agency shall consult with compost facilities serving Illinois, units of local government, producer responsibility organizations serving Illinois, and the Illinois Recycling System Advisory Council.

(c) The Agency shall submit a final report and recommendations for legislation to the Senate Committee on Environment and Conservation and the House Committee on Energy and Environment no later than December 15, 2026.

Section 900. The State Finance Act is amended by adding Sections 5.970 and 5.971 as follows:

(30 ILCS 105/5.970 new)

Sec. 5.970. The Producer Responsibility Fund.

(30 ILCS 105/5.971 new)

Sec. 5.971. The Waste Prevention and Reuse Fund.

Section 999. Effective date. This Act takes effect upon becoming law.