S04246 Summary:

BILL NOS04246B
 
SAME ASSAME AS A05322-B
 
SPONSORHARCKHAM
 
COSPNSRKAVANAGH, ADDABBO, BAILEY, BRESLIN, BRISPORT, BROUK, CHU, CLEARE, COMRIE, FERNANDEZ, GIANARIS, GONZALEZ, GOUNARDES, HINCHEY, HOYLMAN-SIGAL, JACKSON, KRUEGER, LIU, MAY, MAYER, MYRIE, PALUMBO, PARKER, RAMOS, RIVERA, SALAZAR, SANDERS, SCARCELLA-SPANTON, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY, THOMAS, WEBB
 
MLTSPNSR
 
Add Art 27 Title 34 §§27-3401 - 27-3443, §37-0202, En Con L
 
Enacts the "packaging reduction and recycling infrastructure act" to require companies selling, offering for sale, or distributing packaging materials and products to register with a packaging reduction organization to develop a packaging reduction and recycling plan.
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S04246 Actions:

BILL NOS04246B
 
02/06/2023REFERRED TO ENVIRONMENTAL CONSERVATION
03/15/2023REPORTED AND COMMITTED TO FINANCE
06/01/2023AMEND (T) AND RECOMMIT TO FINANCE
06/01/2023PRINT NUMBER 4246A
01/03/2024REFERRED TO ENVIRONMENTAL CONSERVATION
02/09/2024AMEND AND RECOMMIT TO ENVIRONMENTAL CONSERVATION
02/09/2024PRINT NUMBER 4246B
02/27/2024REPORTED AND COMMITTED TO FINANCE
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S04246 Committee Votes:

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S04246 Floor Votes:

There are no votes for this bill in this legislative session.
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S04246 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4246--B
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                    February 6, 2023
                                       ___________
 
        Introduced  by Sens. HARCKHAM, KAVANAGH, ADDABBO, BAILEY, BRESLIN, BRIS-
          PORT, BROUK,  CHU,  CLEARE,  COMRIE,  FERNANDEZ,  GIANARIS,  GONZALEZ,
          GOUNARDES,  HINCHEY, HOYLMAN-SIGAL, JACKSON, KRUEGER, LIU, MAY, MAYER,
          MYRIE,   PALUMBO,   PARKER,   RAMOS,   RIVERA,    SALAZAR,    SANDERS,
          SCARCELLA-SPANTON,  SEPULVEDA,  SERRANO, SKOUFIS, THOMAS, WEBB -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee  on  Environmental  Conservation  -- reported favorably from
          said committee and committed to the Committee on Finance --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  recommitted to the Committee on Environmental
          Conservation in accordance with Senate Rule 6,  sec.  8  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        AN  ACT  to  amend  the  environmental  conservation law, in relation to
          enacting the packaging reduction and recycling infrastructure act
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "packaging reduction and recycling infrastructure act".
     3    § 2. Article 27 of the environmental conservation law  is  amended  by
     4  adding a new title 34 to read as follows:
     5                                  TITLE 34
     6            PACKAGING REDUCTION AND RECYCLING INFRASTRUCTURE ACT
     7  Section 27-3401. Definitions.
     8          27-3403. Selection of the packaging reduction organization.
     9          27-3405. Responsibilities of packaging reduction organization.
    10          27-3407. Packaging reduction and recycling organization plan.
    11          27-3409. Packaging reduction and recycling plan approval.
    12          27-3411. Packaging reduction and recycling advisory council.
    13          27-3413. Funding mechanism.
    14          27-3415. Collection and convenience.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08868-09-4

        S. 4246--B                          2
 
     1          27-3417. Producer responsibilities.
     2          27-3419. Department responsibilities.
     3          27-3421. Statewide  packaging  reduction,  reuse,  and recycling
     4                    needs assessment.
     5          27-3423. Education and outreach program.
     6          27-3425. Prohibition on certain toxic substances and materials.
     7          27-3427. Non-reusable packaging reduction standards.
     8          27-3429. Recycled content standards.
     9          27-3431. Recyclability criteria and packaging recycling require-
    10                    ments.
    11          27-3433. Establishment of  the  office  of  recycling  inspector
    12                    general.
    13          27-3435. Penalties and enforcement.
    14          27-3437. Rules and regulations.
    15          27-3439. State preemption.
    16          27-3441. Other assistance programs.
    17          27-3443. Severability.
    18  § 27-3401. Definitions.
    19    As used in this title:
    20    1.  "Advisory  council" or "council" means the packaging reduction and
    21  recycling advisory council established under  section  27-3411  of  this
    22  title.
    23    2. "Beverage container" shall have the same meaning as is set forth in
    24  subdivision two of section 27-1003 of this article.
    25    3.  "Brand"  means  any  mark,  word, name, symbol, design, device, or
    26  graphical element or a combination thereof, including  a  registered  or
    27  unregistered trademark, that identifies and distinguishes a product from
    28  other products.
    29    4. "Contamination" means:
    30    (a)  the  presence  of  materials in a given collected material stream
    31  that are not on the minimum recyclables list maintained by  the  depart-
    32  ment; or
    33    (b)  the  presence of materials in a given recycled material delivered
    34  as a feedstock or commodity that are not  specified  or  accepted  as  a
    35  component of the feedstock or commodity.
    36    5.  "Discarded", "discards", "generated" or "generation" means packag-
    37  ing material that has been used for its intended purpose and is no long-
    38  er needed by consumers, businesses, institutions, and other  users,  and
    39  can be managed through reuse, recycling, or disposal.
    40    6.  "Disposal"  means  the  landfilling or incineration of material or
    41  products.   "Disposal" shall also  include  energy  recovery  or  energy
    42  generation  by  any  means, including, but not limited to, incineration,
    43  combustion, pyrolysis, gasification, or solvolysis, waste-to-energy,  or
    44  waste-to-fuel,  or  any  other  chemical  conversion process. "Disposal"
    45  shall also include the use of materials as landfill cover.
    46    7. "Eco-modulation" means structuring program fees in a way to provide
    47  producers with financial incentives  to  reduce  waste  at  the  source,
    48  increase  recyclability of packaging materials, promote reusable packag-
    49  ing products, including those that are  contained  within  a  reuse  and
    50  refill  system,  discourage  and  decrease contamination, disincentivize
    51  designs or practices that increase the costs and  adverse  environmental
    52  impacts  of  managing the packaging materials, and encourage designs and
    53  processes that improve and facilitate development of infrastructure  and
    54  systems for source reduction, reuse, recycling, and composting.
    55    8.  "Disadvantaged  community"  shall  have the same meaning as is set
    56  forth in subdivision five of 75-0101 of this chapter.

        S. 4246--B                          3
 
     1    9. "Local government" means any  municipal  corporation,  governmental
     2  subdivision  of  the  state,  local  government  unit, special district,
     3  school, local or regional board, commission, or authority authorized  by
     4  law  to  plan  or  provide  for waste management services for a specific
     5  geographical area.
     6    10.  "Packaging  material"  or "material" means a discrete material or
     7  category of material, regardless of  recyclability,  including  but  not
     8  limited to such material types that are flexible, foam, or rigid materi-
     9  al,  including paper, cardboard, plastic, glass, metal, or multi-materi-
    10  al, that is used for the containment,  protection,  handling,  delivery,
    11  transport,  distribution,  or  presentation  of  another product that is
    12  sold, offered for sale, imported, or distributed in the state, including
    13  through an internet transaction, and single-use  plastic  products  that
    14  frequent  the residential waste stream or are plastic products that have
    15  the effect of disrupting recycling processes, including, but not limited
    16  to, single-use plastic items such as straws, utensils, cups, plates, and
    17  plastic bags. Packaging material does not include:
    18    (a) Medical devices and packaging which  are  included  with  products
    19  regulated as a drug, medical device, or dietary supplement by the United
    20  States  food  and  drug administration under the federal food, drug, and
    21  cosmetic act, 21 U.S.C. 321 et seq., Sec. 3.2(E)  of  21  U.S.  code  of
    22  federal regulations, or the dietary supplement health and education act;
    23    (b)  Animal  biologics, including vaccines, bacterins, antisera, diag-
    24  nostic kits, and other products or biological origin, and other  packag-
    25  ing  materials  regulated by the United States department of agriculture
    26  under the virus, serum, toxin act, 21 U.S.C. 151-159;
    27    (c) Packaging regulated by the  Federal  Insecticide,  Fungicide,  and
    28  Rodenticide  Act,  7 U.S.C. Sec. 136 et seq. or other applicable federal
    29  law, rule, or regulation;
    30    (d) Packaging used to contain hazardous or  flammable  products  regu-
    31  lated  by the 2012 federal Occupational Safety and Health Administration
    32  Hazard Communications Standard (29 C.F.R. 1910.1200);
    33    (e) Beverage containers subject  to  a  returnable  container  deposit
    34  under title ten of this article;
    35    (f)  Infant  formula  as  defined in section 321(z) of title 21 of the
    36  United States code of federal regulations;
    37    (g) Medical foods as defined in section 360ee(b)(3) of title 21 of the
    38  United States code of federal regulations; and
    39    (h) Architectural paint containers collected and managed  pursuant  to
    40  title twenty of this article.
    41    11. "Packaging reduction and recycling organization" or "organization"
    42  means  a  registered  501(c)(3)  not-for-profit charitable organization,
    43  pursuant to 26 U.S.C. 501(c)(3) under contract with the  department  and
    44  authorized  to  collect  producer fees, assist producers with compliance
    45  with the requirements of this title,  provide  technical  assistance  to
    46  producers and implement the program.
    47    12.  "Packaging  reduction and recycling plan" or "plan" means a docu-
    48  ment in which an organization describes the efforts it will undertake to
    49  comply with the requirements of this title.
    50    13. "Packaging reduction and recycling program" or "program" means the
    51  program implemented by an organization, and overseen by the  department,
    52  to comply with and implement the provisions of this title.
    53    14.  "Post-consumer  recycled  material"  means  new material produced
    54  using material resulting from recycling.
    55    15. "Primary packaging" means the packaging in direct contact with the
    56  product itself, also sometimes referred to as a consumer unit.

        S. 4246--B                          4
 
     1    16. "Producer" means the following entities, other than local  govern-
     2  ments, state governments and the federal government, for compliance with
     3  the  requirements  for  packaging  materials  sold, offered for sale, or
     4  distributed to consumers in or into this state:
     5    (a)  For packaging materials sold or served to consumers at a physical
     6  retail location in this state:
     7    (i) If the packaging materials are sold or served under  the  manufac-
     8  turer's own brand or are sold or served in packaging materials that lack
     9  identification  of  a  brand, the producer of the packaging materials is
    10  the person that manufactures the product;
    11    (ii) If subparagraph (i) of this paragraph does not apply, the produc-
    12  er of the packaging materials is the person that is the  licensee  of  a
    13  brand or trademark under which a product is sold or served to a consumer
    14  in  or  into  this  state, whether or not the trademark is registered in
    15  this state, unless the  manufacturer  of  the  packaging  materials  has
    16  agreed  to accept responsibility; where the producer is a business oper-
    17  ated wholly or in part as a franchise, the producer is  the  franchisor,
    18  if such franchisor has franchisees that are resident in the state;
    19    (iii)  If  there is no person as described in subparagraph (i) or (ii)
    20  of this paragraph within the United States, the producer of the  packag-
    21  ing  material  is  the  person  who  imports the product into the United
    22  States for use in a commercial enterprise that sells, offers  for  sale,
    23  or distributes the product to consumers in this state.
    24    (b) For products sold or distributed to consumers in packaging materi-
    25  als in or into this state via remote sale or distribution:
    26    (i)  The  producer  of packaging materials used to directly protect or
    27  contain the product is the same as the producer defined in paragraph (a)
    28  of this subdivision.
    29    (ii) The producer of packaging materials used to ship the product to a
    30  consumer is the person that manufacturers the shipping material.
    31    17. "Product line" means a group  of  related  products  all  marketed
    32  under  a  single  brand that is sold by the same producer to distinguish
    33  products from each other for better usability for customers.
    34    18. "Recyclable" means a packaging material that meets the criteria in
    35  section 27-3431 of this title.
    36    19. "Recycled" means the  use  of  discarded  packaging  materials  or
    37  products  in  the  production  of a new product or packaging in place of
    38  virgin materials.  "Recycled" material does  not  include  contaminants,
    39  residues,  and  other  process  losses  or  use of materials as landfill
    40  cover.
    41    20. "Recycling" means to separate, dismantle or process the materials,
    42  components   or commodities contained in discards  for  the  purpose  of
    43  preparing  the materials, components, or commodities for use or reuse in
    44  new products or components. "Recycling" does  not  include:  (a)  energy
    45  recovery  or  energy  generation by any means, including but not limited
    46  to, combustion, incineration, pyrolysis,  gasification,  solvolysis,  or
    47  waste-to-fuel;  (b)  any  chemical  conversion  process; or (c) landfill
    48  disposal.
    49    21. "Recycling rate" means the percentage of any given packaging  type
    50  that  is ultimately recycled. The recycling rate for any packaging mate-
    51  rial shall be calculated as the total weight of packaging that is  recy-
    52  cled  in  a given year divided by the total weight of packaging material
    53  generated in that year.  Material  losses,  including  contaminants  and
    54  residues,  accruing  during collection, processing and manufacturing new
    55  products do not count as recycled and  shall  not  be  included  in  the
    56  numerator of the equation.

        S. 4246--B                          5
 
     1    22.  "Reuse"  means  the  return  of  packaging back into the economic
     2  stream for use in the same kind of application intended for the original
     3  packaging, without effectuating a change in the original composition  of
     4  the package, the identity of the product, or the components thereof.
     5    23.  "Reuse  and  refill  system" means a program or set of mechanisms
     6  designed to  facilitate  multiple  uses  of  packaging.  Mechanisms  may
     7  include,   but  are  not  limited  to,  deposits,  incentives,  curbside
     8  collection, collection kiosks, refill stations, dishwashing  facilities,
     9  and re-distribution networks.
    10    24.  "Reusable or refillable packaging and containers" means packaging
    11  material and containers that are specifically designed and  manufactured
    12  to  maintain shape and structure, and be materially durable for repeated
    13  sanitizing, washing, and reuse.
    14    25. "Toxic packaging task force" means the toxic packaging task  force
    15  established by subdivision two of section 27-3425 of this title.
    16    26.  "Toxic  substances" means a chemical or chemical class identified
    17  by a state agency, federal agency, international intergovernmental agen-
    18  cy, accredited research university, or other  scientific  entity  deemed
    19  authoritative  by  the  department  on  the basis of credible scientific
    20  evidence as being one or more of the following:
    21    (a) A chemical or chemical class that is a carcinogen, mutagen, repro-
    22  ductive toxicant, immunotoxin, neurotoxicant, or endocrine disruptor.
    23    (b) A chemical or chemical class that is  persistent  or  bioaccumula-
    24  tive.
    25    (c)  A chemical or chemical class that may harm the normal development
    26  of a fetus or child or cause other developmental toxicity in  humans  or
    27  wildlife.
    28    (d)  A  chemical or chemical class that may harm organs or cause other
    29  systemic toxicity.
    30    (e) A chemical or chemical class that may  have  adverse  air  quality
    31  impacts,  adverse  ecological  impacts, adverse soil quality impacts, or
    32  adverse water quality impacts.
    33    (f) A chemical or chemical class that the  department  has  determined
    34  has equivalent toxicity to the above criteria.
    35  § 27-3403. Selection of the packaging reduction organization.
    36    1.  Until the date which is ten years after the effective date of this
    37  title, there shall be only one packaging reduction organization and  all
    38  producers  shall  be  required to register with such packaging reduction
    39  organization.
    40    2. Consistent with the requirements  of  this  title,  within  fifteen
    41  months  of the effective date of this title, the department shall select
    42  and enter into a contract with a not-for-profit organization to  act  as
    43  the initial organization in order to operate the packaging reduction and
    44  recycling program.
    45    3. Within nine months of the effective date of this title and consist-
    46  ent   with  applicable  competitive  bidding  requirements  under  state
    47  purchasing laws,  the department shall issue a request for proposals for
    48  the operation of the packaging  reduction  and  recycling  program.  The
    49  successful  bidder  shall  be  required  to  include,  at a minimum, the
    50  following information:
    51    (a) A description of how  the  bidder  will  administer  the  program,
    52  including  the  mechanisms  and  processes  for  providing assistance to
    53  producers to comply with the reporting requirements of this title;
    54    (b) The mechanisms and processes the bidder will use to compile infor-
    55  mation from producers;

        S. 4246--B                          6
 
     1    (c) How the bidder intends to  manage  and  account  for  all  program
     2  related  funds which pass through the organization, including how timely
     3  reimbursements to local governments will be provided;
     4    (d)  A financial assurance plan that ensures all program funds held by
     5  the organization are immediately and exclusively  forfeited  and  trans-
     6  ferred  to  or otherwise made immediately available to the department if
     7  the organization's contract with the department  is  terminated  by  the
     8  department, or expires;
     9    (e) A proposed budget outlining the anticipated costs of operating the
    10  program  and  a description of the method by which the bidder intends to
    11  determine and collect producer payments during the initial startup peri-
    12  od; and
    13    (f) Any other additional information required by the department.
    14    4. If, at the close of the competitive bidding process under  subdivi-
    15  sion three of this section, the department determines that no bidder has
    16  submitted,  in  accordance  with such subdivision, a proposal that meets
    17  the requirements of this  section,  the  department  shall  operate  the
    18  program  by  itself  or  designate  a   state public body to operate the
    19  program.
    20    5. If after recommendation by the advisory council pursuant to  subdi-
    21  vision  ten  of  section 27-3411 of this title the department determines
    22  that it would be beneficial for there  to  be  additional  organizations
    23  implementing  the  program, beginning ten years after the effective date
    24  of this title, the department may issue  a  request  for  proposals  for
    25  additional  organizations  in a manner consistent with the provisions of
    26  this section. Should  the department determine to have additional organ-
    27  izations,  the    department  shall  promulgate  regulations  to  ensure
    28  consistency and  coordination between all organizations.
    29  § 27-3405. Responsibilities of packaging reduction organization.
    30    1. Producers shall register with a packaging reduction organization to
    31  meet  the  responsibilities of the program pursuant to the provisions of
    32  this section.
    33    2. Each packaging reduction organization shall:
    34    (a) Develop a packaging reduction and recycling plan and  submit  such
    35  plan  to  the  advisory  council  for  review and comment, and after any
    36  modifications in response to such  comments,  submit  the  plan  to  the
    37  commissioner for approval pursuant to section 27-3407 of this title;
    38    (b)  Collect  and  compile  data from producers as required by section
    39  27-3417 of this title;
    40    (c) Collect fees due from producers as required by section 27-3413  of
    41  this title;
    42    (d) Reimburse the department and any other relevant state agencies for
    43  the  costs  associated  with  conducting  the statewide needs assessment
    44  required by section 27-3421 of this title,  the  administration  of  the
    45  program  by the department, and the expenses of the advisory council and
    46  the toxic packaging task force;
    47    (e) Distribute funds to reimburse local governments and private compa-
    48  nies for the costs associated  with  the  implementation  of  reduction,
    49  refill, and reuse programs, and the collection, transportation and recy-
    50  cling, disposal or other processing of packaging materials;
    51    (f)  Offer technical support to producers, with an emphasis on support
    52  to small businesses, to assist them with compliance  with  the  require-
    53  ments  of  this  title, including information about procuring affordable
    54  alternatives to non-compliant packaging and reducing packaging.
    55    3. Annually, each organization shall submit a report to the department
    56  that, at a minimum, must include the following information:

        S. 4246--B                          7
 
     1    (a) Contact information for the organization;
     2    (b)  A list of all (i) producers, (ii) brands, and (iii) products that
     3  each producer sells, offers for sale, or distributes into the state that
     4  are contained, protected, delivered, presented,  or  distributed  in  or
     5  using  packaging,  in each case identified by the Universal Product Code
     6  (UPC) if the product has one;
     7    (c) The total amount, by both weight and number of units, of each type
     8  of packaging material used to contain, protect, handle, deliver,  trans-
     9  port,  distribute,  or  present  products  sold,  offered  for  sale, or
    10  distributed into the state by each individual producer during the  prior
    11  calendar year;
    12    (d)  The  total  amount,  by  both weight and number of units, of each
    13  material used to contain, protect, handle, deliver, transport,  distrib-
    14  ute, or present products sold, offered for sale, or distributed into the
    15  state by all producers during the prior calendar year;
    16    (e) A complete accounting of all payments made to and by the organiza-
    17  tion during the prior calendar year;
    18    (f)  A  list  of producers reasonably believed to be out of compliance
    19  with the requirements of this title, and  the  reason  the  organization
    20  reasonably  believes  the producer to be out of compliance.  Information
    21  on non-compliant producers shall be provided  to  the  commissioner  and
    22  recycling  inspector general's office in a timely fashion and for possi-
    23  ble enforcement action by the office;
    24    (g) A description of the educational and outreach efforts made by  the
    25  organization  in  the  prior  calendar  year, and how those efforts were
    26  designed to reduce packaging waste, and increase reuse and recycling  of
    27  packaging materials;
    28    (h)  An assessment of whether the fee structure adopted by the depart-
    29  ment pursuant to section 27-3413 of this title  has  been  effective  in
    30  incentivizing  improvements to the design of packaging material, includ-
    31  ing actual reduction of packaging, increases in reusable and  refillable
    32  packaging, recycling rates for packaging materials, and decreases in the
    33  amount of packaging;
    34    (i) A description of the reimbursements and expenditures made pursuant
    35  to section 27-3413 of this title;
    36    (j) Audited financial statements;
    37    (k)  The  results of the review conducted pursuant to subdivision four
    38  of this section; and
    39    (l) Any additional information required by the department.
    40    4. Each organization shall conduct an annual review process to  deter-
    41  mine  whether  packaging  materials are recyclable. This review shall be
    42  conducted in consultation with representatives of end markets, including
    43  recycled commodities brokers and manufacturers who purchase post-consum-
    44  er material for use in manufacturing new products, and  in  consultation
    45  with  local  governments.  For  the  purposes  of  calculating  producer
    46  payments and local government reimbursements  in  accordance  with  this
    47  title,  this  annual process shall include a transitional period between
    48  the date the determination is  finalized  and  the  date  it  goes  into
    49  effect.
    50    5. Each organization shall conduct public outreach and provide consum-
    51  ers with educational and informational materials related to reducing the
    52  amount of packaging discarded, recycled, and disposed of in the state as
    53  outlined in section 27-3423 of this title.
    54    6.  Each  organization  shall  operate  a  program  that  provides for
    55  collection convenience as described in section 27-3415 of this title.

        S. 4246--B                          8
 
     1    7. Each organization shall not spend funds  on  lobbying  or  campaign
     2  contributions to any candidates running for office.
     3    8.  An  organization  shall not share, except with the department, the
     4  advisory council, and the toxic packaging task force, or as required  by
     5  law,  any  proprietary  information  that is identified by a producer as
     6  proprietary information.
     7  § 27-3407. Packaging reduction and recycling organization plan.
     8    1. Within two years of the effective date of this title,  the  initial
     9  packaging  reduction  organization, shall develop and submit a packaging
    10  reduction and recycling plan on implementation of the  rules  and  regu-
    11  lations  of this title, including ensuring timely disbursements to local
    12  governments, to the department for approval. The plan shall be submitted
    13  to the advisory council for review pursuant to section 27-3411  of  this
    14  title  prior to the department's approval.  Any subsequent or additional
    15  organization shall develop and submit a packaging reduction and  recycl-
    16  ing  plan and comply with all the requirements of this section, and have
    17  such plan approved pursuant to section 27-3409 of this title.
    18    2. The plan shall cover five years and be  updated  every  five  years
    19  following  the  approval of the original plan. The department shall have
    20  the discretion to require the plan to be reviewed or  revised  prior  to
    21  the five-year period pursuant to section 27-3419 of this title.
    22    3.  Each producer shall begin program implementation within six months
    23  after the date the plan for the initial organization is approved and  in
    24  no  event later than three years of the effective date of this title. If
    25  no plan is approved by that timeframe, the producer shall be subject  to
    26  penalties for noncompliance.
    27    4.  Any  person that becomes a producer after the plan for the initial
    28  organization is approved  shall  register  with  a  packaging  reduction
    29  organization  and begin program implementation within six months thereof
    30  or be subject to penalties for noncompliance.
    31    5. The submitted plan shall include, but not be limited to:
    32    (a) contact information, including the name, electronic  and  physical
    33  address,  and  telephone  number of the authorized representative of the
    34  producer or producers;
    35    (b) the identity of the producer or  producers  participating  in  the
    36  plan;
    37    (c)  a comprehensive list of the types and brands of covered materials
    38  for which the producer or producers are responsible for;
    39    (d) a description of (i) the proposed funding mechanism, identified in
    40  section 27-3413 of this title,  that  meets  the  requirements  of  this
    41  title,  and  (ii) how the organization will maintain a financial reserve
    42  sufficient to operate the program in a fiscally prudent and  responsible
    43  manner;
    44    (e)  an  objective  formula  establishing  a reimbursement rate, which
    45  covers obligations identified in the needs  assessment  and  takes  into
    46  account  variable regional costs, for participating local governments or
    47  private sector service providers;
    48    (f) a description of the process for participating  local  governments
    49  or private sector service providers to recoup reasonable costs as estab-
    50  lished  by  the  objective  formula,  from the producer or organization,
    51  including,  as  applicable,  any  administrative,  sorting,  collection,
    52  transportation,  public education, or processing costs, if the organiza-
    53  tion uses existing services through a local government or  obtains  such
    54  services  from  a  private  sector  service  provider, which process and
    55  recoupment may be structured to incentivize improvements  in  management

        S. 4246--B                          9
 
     1  of  materials  including  without  limitation in the manner described in
     2  paragraph (i) of this subdivision;
     3    (g)  a  description  of  the characteristics of each type of packaging
     4  material that is relevant to the eco-modulating factors set forth pursu-
     5  ant to section 27-3413 of this title;
     6    (h) if the local government does  not  elect  to  provide  service,  a
     7  description  of  the  process used for contracting with a private sector
     8  entity to provide such services and the recoupment of reasonable  costs,
     9  including  procedures  to  ensure that such private sector entity is not
    10  compensated for such services by both the organization and the  consumer
    11  for the same service;
    12    (i)  how  the  producers  and/or  organization will work with existing
    13  waste  haulers,  material  recovery  facilities,  recyclers,  and  local
    14  governments  to operate or expand current collection programs to address
    15  material collection methods, improve efficiency and yield of  processing
    16  materials  from  separate  collection  streams,  and  increase packaging
    17  reduction and reuse;
    18    (j) a description of how the producers or organization will use  open,
    19  competitive,  and  fair procurement practices should they directly enter
    20  into contractual agreements with service  providers,  including  munici-
    21  palities and private entities;
    22    (k)  a  description  of  how a local government will participate, on a
    23  voluntary basis, with collection and how existing local government recy-
    24  cling processing and collection infrastructure will be used;
    25    (l) a description of how the producers or organization plans  to  meet
    26  the convenience requirements set forth in this title;
    27    (m) a description of the process for end-of-life management, including
    28  recycling and disposal of residuals collected for recycling, using envi-
    29  ronmentally sound management practices;
    30    (n)  a description of how the organization shall provide the option to
    31  purchase recycled materials from processors;
    32    (o) a description of how producers are complying  with  and  exceeding
    33  the   waste  reduction,  toxics,  recycling  and  post-consumer  content
    34  requirements of the title;
    35    (p) a description of how the organization will strategically invest in
    36  existing and future reuse and recycling infrastructure and market devel-
    37  opment in the state in consultation with the department and in a  manner
    38  not  inconsistent  with the needs assessment, including, but not limited
    39  to, installing or upgrading equipment  to  improve  sorting  of  covered
    40  materials or mitigating the impacts of materials to other commodities at
    41  existing sorting and processing facilities, and capital expenditures for
    42  new technology, equipment, and facilities;
    43    (q)  a  process  to  address concerns and questions from customers and
    44  residents;
    45    (r) a description of  the  organization's  public  outreach  education
    46  program for consumers and other stakeholders;
    47    (s)  a description of how comments of stakeholders were considered and
    48  addressed in the development of the plan; and
    49    (t) a detailed description of how the organization consulted with  the
    50  advisory  council, the public, and other stakeholders in the development
    51  of the plan prior to its submission  to  the  department,  and  to  what
    52  extent the organization specifically incorporated the advisory council's
    53  input into the plan.
    54    6.  The organization shall also provide the advisory council a reason-
    55  able period of time to review and comment upon the draft plan  prior  to
    56  its  submission  to the department in accordance with section 27-3409 of

        S. 4246--B                         10
 
     1  this title which shall in no event be less than sixty days.  The  organ-
     2  ization  shall make an assessment of comments received and shall provide
     3  a summary and an analysis of the issues raised by the  advisory  council
     4  and  significant  changes suggested by any such comments, a statement of
     5  the reasons why any significant changes were not incorporated  into  the
     6  plan,  and  a description of any changes made to the plan as a result of
     7  such comments.
     8  § 27-3409. Packaging reduction and recycling plan approval.
     9    1. Before approval or denial of a packaging  reduction  and  recycling
    10  plan  can  be made in accordance with this title, the producer or organ-
    11  ization shall submit the plan to the packaging reduction  and  recycling
    12  advisory council.  The advisory council shall then make a recommendation
    13  regarding approval or disapproval of the plan in accordance with section
    14  27-3411 of this title.
    15    2.  Within  sixty days of the advisory council making a recommendation
    16  to the department, the department shall make a determination to  approve
    17  the  plan  as  submitted;  approve the plan with conditions; or deny the
    18  plan, with reasons for the denial.
    19    3.  The department may establish additional plan requirements in addi-
    20  tion to those identified herein to fulfill the  intent  of  this  title;
    21  provided, however, that any additional requirements shall be established
    22  one year prior to a required submission of a plan unless such additional
    23  requirements  are  in  relation  to  the power granted to the department
    24  section 27-3419 of this title.
    25    4. No later than six months after the date the plan is  approved,  the
    26  organization  shall  implement  the  approved  plan.  The department may
    27  rescind the approval of an approved plan at any time for cause and  with
    28  documented justification.
    29  § 27-3411. Packaging reduction and recycling advisory council.
    30    1.  There  is  hereby  established  within  the department a packaging
    31  reduction and recycling advisory council to receive and review the pack-
    32  aging reduction and recycling plans required under  section  27-3407  of
    33  this title, to make recommendations to the department regarding approval
    34  of the plans, and to review the annual reports produced by organizations
    35  and  to  make  recommendations  to  the  department and organizations as
    36  required by this section.
    37    2. The advisory council shall convene for the first time no later than
    38  one year after the effective date of this title.  The  advisory  council
    39  shall  be composed of thirteen members.  Seven shall be appointed by the
    40  commissioner, three shall be appointed by the speaker of  the  assembly,
    41  and  three  shall be appointed by the temporary president of the senate.
    42  The advisory council shall include at least one member from each of  the
    43  following:
    44    (a)  a  local  government  association  or  local  government program,
    45  including an additional local government representative from cities with
    46  a population of one million or more residents;
    47    (b) a statewide environmental organization;
    48    (c) a representative of an environmental justice community affected by
    49  solid waste infrastructure;
    50    (d) an environmental justice organization;
    51    (e) a statewide waste disposal or recycling association;
    52    (f) a materials recovery facility located within the state;
    53    (g) a recycling collection provider;
    54    (h) a manufacturer  of  packaging  materials  utilizing  post-consumer
    55  recycled content;
    56    (i) a consumer advocate;

        S. 4246--B                         11
 
     1    (j) a retailer;
     2    (k) a public health specialist; and
     3    (l)  a  producer  and  an organization established under this title as
     4  non-voting members.
     5    3. Appointments to  the  advisory  council  are  term-limited  to  ten
     6  consecutive years of service; the chair shall be chosen through a major-
     7  ity vote of its members and shall serve no longer than three consecutive
     8  years.
     9    4.  Advisory  council members shall serve without compensation, except
    10  that a member of the committee who is a state officer  or  employee  may
    11  receive  his  or her regular compensation while engaging in the business
    12  of the committee, but shall be entitled to receive reimbursement for any
    13  actual, necessary expenses incurred in the course of performing business
    14  for the committee.
    15    5. All decisions made by the advisory  council  shall  be  decided  by
    16  voting  and votes shall only be valid when a quorum is present. A quorum
    17  shall exist when greater than fifty percent of voting members are  pres-
    18  ent. The advisory council shall meet at least once a year by the call of
    19  the chair or by request of more than half the members.  The decisions of
    20  the advisory council shall be by vote of the majority of its membership.
    21    6.  The  council  shall  determine  whether  the  plan submitted under
    22  section 27-3409 of this title meets the criteria  and  objectives  under
    23  such section in making its recommendation.
    24    7. The advisory council shall, within ninety days of the submission of
    25  a packaging reduction and recycling plan, either:
    26    (a)  forward  the plan to the commissioner with its recommendation for
    27  approval; or
    28    (b) forward the plan to the  commissioner  with  its  disapproval  and
    29  stated  reasons  therefor, including any recommended changes to the plan
    30  necessary for approval.
    31    8. An organization may resubmit a packaging  reduction  and  recycling
    32  plan  for  approval  at  any  time. Upon such resubmission, the advisory
    33  council shall, within ninety days, forward the plan to the  commissioner
    34  with its recommendation for approval or disapproval.
    35    9.  The advisory council shall review the submitted annual reports and
    36  make such recommendations to the department  and  the  organization  for
    37  improving  future administration of the program and compliance with this
    38  title.
    39    10. Thirty months from the date the department adopts rules and  regu-
    40  lations  pursuant  to  this title, and every three years thereafter, the
    41  advisory council shall conduct a review of all relevant data,  including
    42  annual  reports,  the  latest  scientific  data available, any pertinent
    43  statewide waste and reuse data, and any other information deemed  impor-
    44  tant, to make recommendations to the following:
    45    (a)  organizations  for  any changes in administration of the program,
    46  including feedback on the education and outreach program as outlined  in
    47  section 27-3423 of this title;
    48    (b) the department for any necessary changes to regulations, the fund-
    49  ing  mechanism,  reimbursement  and  expenditure  policies or whether it
    50  would be beneficial for there to be additional organizations  implement-
    51  ing the program; and
    52    (c)  the legislature for recommended statutory changes. Such recommen-
    53  dations shall include a recommendation as to whether to modify the defi-
    54  nition of recycling under this title.
    55  § 27-3413. Funding mechanism.

        S. 4246--B                         12
 
     1    1.  All costs of the program, including  administration,  enforcement,
     2  and all other state costs of the program and organizations' costs of the
     3  program,  including but not limited to those costs described in subdivi-
     4  sion three of this section shall be covered by  producer  payments.  The
     5  department shall promulgate rules and regulations in the manner required
     6  by  section  27-3419  of  this  title  setting forth the manner in which
     7  producer  payments  on  packaging  materials  shall  be  calculated  and
     8  assessed. Payments shall be calculated based on:
     9    (a) The packaging material type;
    10    (b)  The quantity of each packaging material type, by weight, that the
    11  producer sells, offers for sale, or distributes in the state;
    12    (c) Eco-modulation, including as described  in  subdivision  seven  of
    13  this section.
    14    2.  The list of packaging material types for which there is a specific
    15  fee shall include, at a minimum, the following material types:
    16    (a) Paper;
    17    (b) Cardboard;
    18    (c) Corrugated cardboard;
    19    (d) Wood;
    20    (e) Glass;
    21    (f) Polyethylene terephthalate (PET);
    22    (g) High density polyethylene (HDPE);
    23    (h) Expanded polystyrene (EPS);
    24    (i) Polystyrene;
    25    (j) Bio-plastics;
    26    (k) Generic plastics;
    27    (l) Plastic film;
    28    (m) Other plastics;
    29    (n) Steel or ferrous;
    30    (o) Aluminum;
    31    (p) Tinplate;
    32    (q) Generic metals; and
    33    (r) Mixed materials including laminates and packaging containing  more
    34  than one of the above materials.
    35    3.  Packaging  fees  shall be designed to cover, at minimum, the total
    36  costs associated with:
    37    (a) Costs to provide curbside collection or other form of  residential
    38  service  that  is,  at  minimum,  as  convenient  as detailed in section
    39  27-3415 of this title;
    40    (b) The department's and other state agencies' administration of  this
    41  title;
    42    (c) Organizations' administration of this title;
    43    (d)  The cost associated with the development of the needs assessment,
    44  as required in section 27-3421 of this title;
    45    (e) The costs associated with the advisory council and the toxic pack-
    46  aging task force;
    47    (f) The costs associated with  establishing  packaging  reduction  and
    48  reuse infrastructure;
    49    (g) The cost of providing recycling services, including the collection
    50  cost,  processing  cost  for  each recyclable material, cost of handling
    51  non-recyclable material types collected as part of  a  recycling  opera-
    52  tion, transportation cost of recycling for each material type; and
    53    (h) Any other factors determined by the department.
    54    4.  The  department  may  adjust fees to be paid by producers based on
    55  factors that affect system costs. At a minimum, fees shall  be  variable
    56  based on:

        S. 4246--B                         13
 
     1    (a)  costs  to process packaging materials for acceptance by secondary
     2  material markets;
     3    (b) whether the packaging material would typically be readily-recycla-
     4  ble as determined by the department after consultation with the advisory
     5  council, except that as a consequence of the packaging design, the pack-
     6  aging  product  has  the effect of disrupting recycling processes or the
     7  product includes labels, inks, and adhesives containing heavy metals  or
     8  other toxic substances that would result in contamination of the recycl-
     9  ing process;
    10    (c)  whether  the  packaging  material  is specifically designed to be
    11  reusable or refillable and has high reuse or refill rate;
    12    (d) the commodity value of a packaging material, as determined by  the
    13  department after consultation with the advisory council; and
    14    (e) any other factors determined by the department.
    15    5.  The  fees  shall  be  adjusted, or the producers may be provided a
    16  credit, based upon the percentage  of  post-consumer  recycled  material
    17  content  and  such percentage of post-consumer recycled content shall be
    18  verified by the organization  or  through  an  independent  third  party
    19  approved to perform verification services to ensure that such percentage
    20  exceeds  the minimum requirements in the packaging, as long as the recy-
    21  cled content does not, in the determination of the  department,  disrupt
    22  the potential for future recycling.
    23    6.  In  addition  to  the  annual schedule of fees, the department fee
    24  schedule may include a special  assessment  on  specific  categories  of
    25  packaging  materials at the request of responsible entities representing
    26  and approved by the advisory council if  the  nature  of  the  packaging
    27  material  imposes  unusual costs in collection or processing or requires
    28  special actions to address effective access to recycling  or  successful
    29  processing  in  local  government recycling facilities, as determined by
    30  the department after consultation with the advisory council.
    31    7. The program charges shall be structured to provide  producers  with
    32  financial incentives to encourage:
    33    (a)  A reduction in total packaging as measured by unit weight used by
    34  producers, and discarded by  consumers,  businesses,  institutions,  and
    35  other  users.  Weight  reductions  shall not be achieved by substituting
    36  plastic for other materials types;
    37    (b) An increase in the proportion of a producer's total packaging that
    38  is managed within a reuse and refill system;
    39    (c) An increase in the proportion of a producer's total packaging that
    40  is deemed recyclable as  determined  by  an  annual  review  process  as
    41  described in section 27-3405 of this title;
    42    (d) An increase in the proportion of a producer's total packaging that
    43  is ultimately recycled;
    44    (e) A reduction in toxic components in packaging materials; and
    45    (f) A reduction in litter from packaging materials.
    46    8.  There  shall  be no fee assessed on packaging that is designed for
    47  reuse and refill and contained within a reuse or refill system.
    48    9. Any funds directly collected pursuant to this title  shall  not  be
    49  used to carry out lobbying activities on behalf of an organization.
    50    10.  No  retailer may charge a point-of-sale or other fee to consumers
    51  to facilitate a producer to recoup the costs associated with meeting the
    52  obligations under this title.
    53    11. Nothing in this title shall require a local government to  partic-
    54  ipate in the program.
    55    12.  The  department  shall update and revise the fees with input from
    56  the advisory council every three years.

        S. 4246--B                         14
 
     1  § 27-3415. Collection and convenience.
     2    1. The program shall provide for widespread, convenient, and equitable
     3  access to collection opportunities for recyclable packaging materials at
     4  no  additional  cost.  Such opportunities shall be provided to all resi-
     5  dents of the state in a manner that is as convenient as  the  collection
     6  of municipal solid waste.
     7    2.  Participation  in  the program shall not restrict a jurisdiction's
     8  consumer's ability to contract directly with  third  parties  to  obtain
     9  recycling collection services if consumers have the option to enter into
    10  such  contracts  as  of the effective date of this title, as long as the
    11  consumer still voluntarily chooses to contract directly with  the  third
    12  party.    The  local  government  shall not provide disbursement to such
    13  third party should the local  government  provide  widespread  recycling
    14  services  either  directly  or through a contract that is different from
    15  the contract with such third party, and there  shall  be  procedures  in
    16  place  to  ensure that no service provider is compensated more than once
    17  for the same service.
    18    3. All local government or private recycling service  providers  shall
    19  provide  for  the  collection  and  recycling of all packaging materials
    20  contained on the minimum recyclables lists, based on geographic regions,
    21  in order to be eligible for reimbursement;  provided,  however,  nothing
    22  shall  penalize  a  local  government  or  private recycling service for
    23  recovering and recycling materials  that  are  generated  in  the  local
    24  government  or  geographic  region  that are not included on the minimum
    25  recyclables lists as long as it can be demonstrated that such  materials
    26  have  a  consistent  regional  market  for purchase as determined by the
    27  department in consultation with the producer or organization.
    28    4. Reimbursement shall cover reduction,  as  contemplated  by  section
    29  27-3413 of this title, collection, processing, transportation, and recy-
    30  cling  and  disposal  of  all packaging materials so long as the program
    31  includes at least the minimum recyclables list. The department may grant
    32  an exception of the requirements in  this  subdivision  upon  a  written
    33  showing  by  the  local  government  or  private  recycling service that
    34  compliance with the requirements is not practicable for a specific iden-
    35  tified product or material and if the department finds it is in the best
    36  interest of the intent of this title to grant  an  exception;  provided,
    37  however,  that  any  such  exception granted by the department shall not
    38  exceed twelve months.
    39    5. The department shall promulgate rules  and  regulations  to  ensure
    40  that  program  funds shall be used for investment in collection systems,
    41  transportation  systems, reuse systems, washing systems,  redistribution
    42  systems,  technology  for tracking and data collection, capital expendi-
    43  tures on new and emerging technology that is  focused  on  reusable  and
    44  refillable  packaging,  as  well as equipment, and facilities, and other
    45  projects  determined  by   the department to facilitate  the  goals  and
    46  objectives of this title.
    47    6.  Nothing  in  this  title  shall be deemed to automatically void or
    48  nullify any  collection contracts in effect as of the effective date  of
    49  this title.
    50  § 27-3417. Producer responsibilities.
    51    1.  Beginning  thirty months after the effective date of this title, a
    52  producer shall not sell, offer for sale, or distribute into the state  a
    53  product  contained,  protected,  delivered, presented, or distributed in
    54  packaging unless the producer is registered with an organization and  in
    55  full compliance with all requirements of this title.

        S. 4246--B                         15
 
     1    2.  Either when the producer registers, or within thirty months of the
     2  effective date of this title, whichever is later and annually  thereaft-
     3  er,  each  producer  shall  provide  the organization with the following
     4  information:
     5    (a)  Contact  information, including the name, electronic and physical
     6  address, and telephone number of the authorized  representative  of  the
     7  producer;
     8    (b)  A comprehensive list of the types and brands of packaging materi-
     9  als for which the producer or producers are responsible for;
    10    (c) The total amount, in units and weight, of each type  of  packaging
    11  material  sold, offered for sale, or distributed for sale into the state
    12  by the producer in the prior calendar year; and
    13    (d) Any other information required by the department.
    14    3. Producers are responsible for payment of fees, through an organiza-
    15  tion, based on the quantity, type of packaging used in  the  state,  and
    16  other factors.
    17    4. Producers are responsible for meeting the toxic substances, packag-
    18  ing reduction, post-consumer content, and recycling standards under this
    19  title.
    20    5.  A  producer  shall  electronically  submit  annually,  to both the
    21  department and the packaging reduction  and  recycling  organization,  a
    22  written declaration signed by its chief executive officer, verifying the
    23  producer's compliance with:
    24    (a) The packaging material reduction requirements of this title;
    25    (b)  The  packaging  material  recycled  content  requirements of this
    26  title;
    27    (c) The packaging material recycling requirements of this title;
    28    (d) The toxic substance reduction requirements of this title; and
    29    (e) Any reimbursement obligations they have to  local  governments  or
    30  third party service providers in connection with this title.
    31    6. A producer is exempt from the requirements and prohibitions of this
    32  title in a calendar year in which:
    33    (a)  The  producer  realized  less  than five million dollars in total
    34  gross revenue during the prior calendar year; or
    35    (b) The producer sold, offered  for  sale,  or  distributed  for  sale
    36  products  contained,  protected, delivered, presented, or distributed in
    37  or using less than two tons of packaging material in  total  during  the
    38  prior calendar year.
    39    7.  A  producer  claiming  an exemption pursuant to subdivision six of
    40  this section shall provide the department with sufficient information to
    41  demonstrate that the claimant is eligible for an exemption.
    42    8. Nothing in this title shall impair a producer's eligibility for tax
    43  credits or other business incentives  for  which  they  would  otherwise
    44  qualify.
    45  § 27-3419. Department responsibilities.
    46    1.  Within  eighteen  months  of the effective date of this title, the
    47  department shall, in accordance with  section  27-3437  of  this  title,
    48  promulgate all rules and regulations necessary to implement, administer,
    49  and  enforce  the  provisions of this title, including setting standards
    50  for consumer protection when the organization directly  disburses  funds
    51  to  third parties. These rules and regulations shall include prohibiting
    52  certain packaging toxins pursuant to section 27-3425 of this  title  and
    53  setting  recommended  producers'  program  fees,  after  consulting with
    54  multiple stakeholders, including local governments,  businesses,  insti-
    55  tutions,  and  other  extended producer responsibility programs. Program
    56  fees shall be set as required by section 27-3413 of this title.

        S. 4246--B                         16
 
     1    2. The department shall revise recommended program  fees  every  three
     2  years,  beginning  three  years  after  the first set of program fees is
     3  established, to reflect new data received about material use and manage-
     4  ment, or whenever the targets set in this title are not  met,  to  drive
     5  compliance with such targets.
     6    3.  Beginning  two  years  after the effective date of this title, and
     7  annually thereafter, the department shall work  with  each  organization
     8  to:
     9    (a)  Calculate  the  amount of packaging that was generated during the
    10  prior calendar year;
    11    (b) Calculate the recycling rate for all packaging  during  the  prior
    12  calendar year;
    13    (c)  Calculate  the  recycling  rate  for each packaging material type
    14  during the prior calendar year;
    15    (d) Develop a list of producers  reasonably  believed  to  be  out  of
    16  compliance with the requirements of this title; and
    17    (e)  Utilize  this information with input from the advisory council to
    18  produce an annual report to be shared with the  legislature  and  posted
    19  publicly on the department's website.
    20    4.  In  the event that the department determines that the organization
    21  no longer meets the requirements of this title, or  fails  to  implement
    22  and  administer the requirements of this title in a manner that effectu-
    23  ates the purposes of this title, after reasonable  opportunity  to  cure
    24  such  deficiencies,  the  department  shall  revoke its approval of such
    25  organization and shall either select  a  new  organization  pursuant  to
    26  section 27-3403 of this title or elect to operate the program itself.
    27  § 27-3421. Statewide  packaging  reduction,  reuse,  and recycling needs
    28               assessment.
    29    1. No later than one year after the effective date of this  title  and
    30  every  five  years thereafter, the department shall complete or cause to
    31  be completed a statewide packaging reduction, reuse, and recycling needs
    32  assessment to determine the current state of packaging reuse, recycling,
    33  and disposal, and identify barriers  and  opportunities  to  reduce  the
    34  amount  of  packaging discarded and disposed of, and increase the reusa-
    35  bility and recyclability of packaging.
    36    2. The needs assessment, at a minimum, shall cover the following:
    37    (a) The current recycling rate for each  type  of  packaging  material
    38  material;
    39    (b)  The  amount,  by  weight and material type, of packaging material
    40  recycled at each recycling facility  that  accepts  discarded  packaging
    41  generated in the state;
    42    (c)  The  processing capacity, market conditions, and opportunities in
    43  the state and regionally for recyclable materials generally, and packag-
    44  ing material categories specifically;
    45    (d) The net cost of  end-of-life  management  of  discarded  packaging
    46  material   in   the  state,  including  the  cost  associated  with  the
    47  collection, transportation, sortation, recycling,  littering,  landfill-
    48  ing, or incineration of discarded packaging;
    49    (e)  The  availability  of  opportunities  in  the recycling and reuse
    50  system for minority- and women-owned businesses;
    51    (f) Current barriers affecting recycling access  and  availability  in
    52  the state;
    53    (g)  Current  barriers  to  the  marketability of recyclable materials
    54  generated in the state;
    55    (h) Opportunities for the creation of  packaging  material  reuse  and
    56  refill programs in the state;

        S. 4246--B                         17
 
     1    (i)  Opportunities for the improvement of packaging material recycling
     2  in the state, including the development  of  end  markets  for  recycled
     3  packaging materials.
     4    (j)  Current  barriers  affecting  the  creation and implementation of
     5  packaging material reuse and refill programs;
     6    (k) Consumer education needs in the state with  respect  to  packaging
     7  material waste reduction, recycling, and reducing contamination in recy-
     8  cling, and reuse and refill systems for packaging material; and
     9    (l) Landfill capacity.
    10    3.  The cost incurred by the department associated with conducting the
    11  needs assessment shall be paid for by the organization.
    12    4. The department shall report the results of the needs assessment  to
    13  the  public, the state legislature, and the governor, and shall post the
    14  results on its website.
    15  § 27-3423. Education and outreach program.
    16    1.  The  organization  shall  develop  and  implement  an  educational
    17  outreach  program  designed  to educate the public about waste reduction
    18  and improve the effectiveness of local government recycling  and,  at  a
    19  minimum, include:
    20    (a)  Educational  and informational materials for consumers related to
    21  reducing the amount of packaging discarded, recycled, and disposed of in
    22  the state;
    23    (b) A description of the environmental, social, economic, and environ-
    24  mental justice impacts associated with improper  disposal  of  packaging
    25  material and failure to reuse or recycle packaging materials;
    26    (c)  Information  on  the  proper  end-of-life management of packaging
    27  material, including reuse, recycling, composting, and disposal;
    28    (d) The location and availability of  curbside  collection  and  addi-
    29  tional drop-off collection opportunities for packaging material, includ-
    30  ing deposit and take-back programs;
    31    (e)  How  to  prevent  litter  of packaging material in the process of
    32  collection;
    33    (f) Recycling instructions that are consistent  statewide,  except  as
    34  necessary to take into account differences among local laws and process-
    35  ing capabilities, easy to understand, and easily accessible; and
    36    (g) Any other information required by the department.
    37    2.  The  educational outreach program shall incorporate, at a minimum,
    38  electronic, print, web-based and social media  elements,  including  for
    39  use  by  local  governments  at their discretion, as well as including a
    40  variety of outreach  and  education  tools.  Such  educational  outreach
    41  programs  shall  ensure materials are widely accessible and available in
    42  multiple languages.
    43    3. The educational outreach program  shall  be  coordinated  with  and
    44  assist  local government programs, local government contracted programs,
    45  solid waste collection companies, and other entities providing services.
    46    4. The educational outreach program shall be developed to ensure envi-
    47  ronmental justice communities receive targeted outreach and support.
    48    5. The educational outreach program shall include a plan to work  with
    49  producers  to  label  or  mark  packaging  material,  in accordance with
    50  reasonable labeling standards, with information to assist  consumers  in
    51  responsibly managing and recycling covered products.
    52    6. The organization shall consult with local governments on the devel-
    53  opment  of  educational  materials and may coordinate with local govern-
    54  ments on outreach and communication.
    55    7. The organization shall  be  authorized  to  provide  producers  and
    56  retailers   with   educational  materials  related  to  the  responsible

        S. 4246--B                         18
 
     1  reduction, reuse, recycling, or disposal of discarded packaging  materi-
     2  al. The educational and informational materials provided to the retailer
     3  under  this subdivision may include, but need not be limited to, printed
     4  materials,  signage,  templates  of  materials that can be reproduced by
     5  retailers and provided thereby to consumers at the time of  a  product's
     6  purchase, and advertising materials that promote and encourage consumers
     7  to properly reuse, recycle, or dispose of packaging material.
     8    8. The organization shall make information on relevant tax credits and
     9  other business incentives available to producers.
    10  § 27-3425. Prohibition on certain toxic substances and materials.
    11    1. Beginning two years after the promulgation of rules and regulations
    12  pursuant  to this title, no person or entity shall sell, offer for sale,
    13  or distribute into the state any packaging containing any of the follow-
    14  ing toxic substances:
    15    (a) Ortho-phthalates;
    16    (b) Bisphenols;
    17    (c) Per- and polyfluoroalkyl substances (PFAS);
    18    (d) Heavy metals and compounds, including lead,  hexavalent  chromium,
    19  cadmium, and mercury;
    20    (e) Benzophenone and its derivatives;
    21    (f) Halogenated flame retardants;
    22    (g) Perchlorate;
    23    (h) Formaldehyde;
    24    (i) Toluene;
    25    (j) Antimony and compounds;
    26    (k) Carbon black;
    27    (l) UV 328 (2-(2H-benzotriazol-2-yl)-4,6-di-tert-pentylphenol);
    28    (m) Polyvinyl chloride, including polyvinylidene chloride;
    29    (n) Polystyrene; or
    30    (o) Polycarbonate.
    31    2.(a)  There is hereby established within the department a toxic pack-
    32  aging task force to review the toxicity in packaging in the  state,  and
    33  to  recommend  to  the  department  the  designation of additional toxic
    34  substances which shall be subject  to  the  same  prohibition  as  those
    35  substances listed in subdivision one of this section.
    36    (b)  The  toxic  packaging task force shall have seven members, one of
    37  whom shall be the commissioner or their designee who shall be chair, and
    38  one of whom shall be the commissioner of health or their  designee.  The
    39  other  members  shall  include:    (i) a representative of the packaging
    40  industry; (ii) a representative of an  environmental  justice  organiza-
    41  tion; and (iii) a representative from the chemical industry; all of whom
    42  shall  be  appointed by the commissioner. The remaining members shall be
    43  persons with significant professional or academic  expertise  in  public
    44  health  and  toxicology, one of whom shall be appointed by the temporary
    45  president of the senate and one of whom shall be appointed by the speak-
    46  er of the assembly.  Appointments to the toxic packaging task force  are
    47  term limited to five consecutive years of service.
    48    (c)  The  task  force shall meet at least twice per year to review and
    49  recommend  to  the  department  whether  there  are   additional   toxic
    50  substances  or  classes  of  toxic  substances for use in packaging that
    51  should no longer be sold, offered for sale,  distributed  for  sale,  or
    52  distributed for such use in this state.
    53    3.  Within  one  hundred eighty days of the toxic packaging task force
    54  recommending the designation  of  an  additional  toxic  substance,  the
    55  department shall adopt rules and regulations to designate such substance
    56  as  a  toxic  substance  under this section and prohibit the use of such

        S. 4246--B                         19
 
     1  toxic  substance  in  packaging  in  the  same  manner  as  those  toxic
     2  substances  listed in subdivision one of this section, with an effective
     3  date no later than two years after the date of such recommendation.
     4    4.  Any  producer  that  violates  this section, or any rules or regu-
     5  lations promulgated pursuant to this section, shall be subject to a fine
     6  for each violation not to exceed ten thousand dollars per violation. For
     7  the purposes of this section, each product line that  is  sold,  offered
     8  for  sale,  or  distributed  to  consumers,  via retail commerce, in the
     9  state, including through an internet transaction shall be  considered  a
    10  separate violation.
    11  § 27-3427. Non-reusable packaging reduction standards.
    12    1.  Each individual producer is required to meet the following packag-
    13  ing reduction requirements:
    14    (a) Beginning three years after a producer  first  registers  with  an
    15  organization,  such  producer shall reduce the amount of primary plastic
    16  packaging and the amount of non-primary packaging for all materials used
    17  to contain, protect, deliver, present, or distribute the  products  they
    18  sell,  offer  for  sale,  or  distribute for sale into the state, by ten
    19  percent by unit weight.
    20    (b) Beginning five years after a  producer  first  registers  with  an
    21  organization,  such  producer shall reduce the amount of primary plastic
    22  packaging and the amount of non-primary packaging for all materials used
    23  to contain, protect, deliver, present, or distribute the  products  they
    24  sell,  offer  for sale, or distribute for sale into the state, by twenty
    25  percent by unit weight.
    26    (c) Beginning eight years after a producer  first  registers  with  an
    27  organization,  such  producer shall reduce the amount of primary plastic
    28  packaging and the amount of non-primary packaging for all materials used
    29  to contain, protect, deliver, present, or distribute the  products  they
    30  sell,  offer  for sale, or distribute for sale into the state, by thirty
    31  percent by unit weight.
    32    (d) Beginning ten years after  a  producer  first  registers  with  an
    33  organization,  such  producer shall reduce the amount of primary plastic
    34  packaging and the amount of non-primary packaging for all materials used
    35  to contain, protect, deliver, present, or distribute the  products  they
    36  sell,  offer  for  sale, or distribute for sale into the state, by forty
    37  percent by unit weight.
    38    (e) Beginning twelve years after a producer first  registers  with  an
    39  organization,  such  producer shall reduce the amount of primary plastic
    40  packaging and the amount of non-primary packaging for all materials used
    41  to contain, protect, deliver, present, or distribute the  products  they
    42  sell,  offer  for  sale, or distribute for sale into the state, by fifty
    43  percent by unit weight.
    44    2. The reductions required by this section shall be  measured  against
    45  the  total  amount  of  packaging the producer used to contain, protect,
    46  deliver, present, or distribute the  products  they  sold,  offered  for
    47  sale,  or  distributed  for  sale,  during  the first year such producer
    48  registered with the packaging reduction organization.
    49    3. These reductions shall be achieved by eliminating single-use  pack-
    50  aging, including secondary or tertiary packaging, elimination of packag-
    51  ing  components,  reduction of packaging components, or by transitioning
    52  to reusable or refillable packaging systems.
    53    4. The reductions required by this section shall not  be  achieved  by
    54  substituting  non-plastic materials with plastic materials or substitut-
    55  ing recyclable materials with non-recyclable materials.

        S. 4246--B                         20
 
     1    5. In the case of a producer for which, as of the  effective  date  of
     2  this  title  or  upon entry into the market after such effective date, a
     3  portion of its packaging is reusable and contained within  a  reuse  and
     4  refill  system,  such  producer may apply to the department for a waiver
     5  from  the  packaging reduction requirements set forth in subdivision one
     6  of this section with respect to that percentage  of  its  packaging,  by
     7  unit weight, which is contained within a reuse and refill system.
     8    6.  In  the case of a producer that demonstrates in a manner satisfac-
     9  tory to the department that, for the period beginning five  years  prior
    10  to  the effective date of this title and ending on the date which is two
    11  years after the effective date of this title, the producer  reduced  the
    12  amount  of  packaging  used  to  contain,  protect, deliver, present, or
    13  distribute the products the producer sells, offers for sale, or distrib-
    14  utes for sale into the state, such  producer may apply to the department
    15  for a waiver from the packaging reduction requirements of  this  section
    16  with  respect to that percentage of its packaging, by unit weight, which
    17  was reduced during such five-year period.
    18    7. A producer may apply to  the  department  for  a  waiver  from  the
    19  reduction  requirements  of this section if compliance is impossible due
    20  to federal law. Such waiver must be  applied  for  annually.    In  such
    21  application  the  producer shall provide the department and the advisory
    22  council with sufficient information, in the determination of the depart-
    23  ment in consultation with the advisory council, to make a  determination
    24  on  such  application,  including  proof that the producer has taken all
    25  feasible actions to achieve the reductions required by this section.
    26    8. Nothing in this section shall preclude a producer from going beyond
    27  the reduction standards in subdivision one of this section.
    28  § 27-3429. Recycled content standards.
    29    1. Each individual producer shall meet the recycling  content  targets
    30  contained in this section.
    31    2. Beginning two years after the effective date of this section:
    32    (a) all glass containers manufactured in the state used by the produc-
    33  er shall contain, on average, at least thirty-five percent post-consumer
    34  recycled content;
    35    (b) all paper carryout bags sold, offered for sale, or given away free
    36  in  the  state  by  a producer shall contain, on average, at least forty
    37  percent post-consumer recycled content; except that a paper carryout bag
    38  that holds eight pounds or less shall only be required  to  contain,  on
    39  average, at least twenty percent post-consumer recycled content; and
    40    (c)  all plastic trash bags sold or offered for sale in the state by a
    41  producer shall contain, on average, at least twenty percent post-consum-
    42  er recycled content.
    43    3. The requirements of this section shall not  apply  to  reusable  or
    44  refillable packaging or containers.
    45    4.  Beginning  two  years  after  plan  implementation  begins for the
    46  initial organization, the department is authorized, in consultation with
    47  the advisory council, to:
    48    (a) establish content requirements for materials not listed in  subdi-
    49  vision two of this section; and
    50    (b)  modify the post-consumer recycled content targets for the materi-
    51  als set forth in subdivision two of this section, provided that  modifi-
    52  cations  do not result in a lesser percentage or an earlier year for the
    53  respective target.
    54  § 27-3431. Recyclability criteria and packaging recycling requirements.

        S. 4246--B                         21
 
     1    1. Beginning two years after the effective date of this section, pack-
     2  aging materials used by a producer shall meet the following recyclabili-
     3  ty criteria:
     4    (a)  be  capable  of  being sorted by entities that process recyclable
     5  material generated in the state;
     6    (b) has a consistent regional market for purchase, by end users in the
     7  production of new products;
     8    (c) does not contain the following:
     9    (i) non-detectable pigments,  including  but  not  limited  to  carbon
    10  black;
    11    (ii)  the  toxic  substances  set  forth in subdivision one of section
    12  27-3425 of this title and those designated by the toxic  packaging  task
    13  force pursuant to subdivision two of section 27-3425 of this title;
    14    (iii) opaque or pigmented polyethylene terephthalate;
    15    (iv) oxo-degradable additives, including oxo-biodegradable additives;
    16    (v) polyethylene terephthalate glycol in rigid packaging;
    17    (vi)  label  constructions,  including  adhesives, inks, materials and
    18  formats, or features that render a package non-recyclable or  disruptive
    19  to  the  recycling process, as determined by the department in consulta-
    20  tion with the advisory council; and
    21    (vii) DoPS - polystyrene, including EPS (expanded polystyrene);
    22    (d) meets the post-consumer content requirements of this title; and
    23    (e) any other criteria determined by the department.
    24    2. The department shall maintain a list of packing material that  meet
    25  these  criteria  and  are  deemed to be recyclable. The department shall
    26  update this list annually.
    27    3. Each individual producer shall be required to  meet  the  following
    28  recycling rate standards:
    29    (a) With respect to the producer's non-plastic packaging:
    30    (i)  Beginning  January first, two thousand twenty-eight, a minimum of
    31  thirty-five percent of packaging material reported by the producer or an
    32  organization as supplied into the state shall  be  reused  or  recycled,
    33  with a minimum of five percent being reused;
    34    (ii)  Beginning  January first, two thousand thirty-five, a minimum of
    35  fifty percent of packaging material  reported  by  the  producer  or  an
    36  organization  as  supplied  into  the state shall be reused or recycled,
    37  with a minimum of ten percent being reused; and
    38    (iii) Beginning January first, two thousand fifty, a minimum of seven-
    39  ty-five percent of packaging material reported by  the  producer  or  an
    40  organization  as  supplied  into  the state shall be reused or recycled,
    41  with a minimum of twenty percent being reused.
    42    (b) With respect to plastic packaging:
    43    (i) Beginning January first, two thousand twenty-eight, a  minimum  of
    44  twenty-five  percent  of  plastic  packaging  material  reported  by the
    45  producer or an organization as supplied into the state shall  be  reused
    46  or recycled;
    47    (ii)  Beginning  January first, two thousand thirty-five, a minimum of
    48  fifty percent of plastic packaging material reported by the producer  or
    49  an  organization as supplied into the state shall be reused or recycled;
    50  and
    51    (iii) Beginning January first, two thousand fifty, a minimum of seven-
    52  ty-five percent of plastic packaging material reported by  the  producer
    53  or  an  organization as supplied into the state shall be reused or recy-
    54  cled.
    55    4. The department may adjust the recycling rates in subdivision  three
    56  of  this section by rulemaking based on information gathered through the

        S. 4246--B                         22
 
     1  needs assessment or provided in producer plans and reports, or based  on
     2  consideration  of  environmental,  technical and economic conditions. An
     3  adjustment to the statewide recycling and reuse performance targets  may
     4  not adjust the recycling rate target to less than thirty-five percent or
     5  more than seventy-five percent.
     6    5.  A  producer  may  apply  to  the  department for a waiver from the
     7  reduction requirements of this section if compliance is  impossible  due
     8  to  federal  law.  Such  waiver  shall  be applied for annually. In such
     9  application the producer shall provide the department and  the  advisory
    10  council with sufficient information, in the determination of the depart-
    11  ment  in consultation with the advisory council, to make a determination
    12  on such application, including proof that the  producer  has  taken  all
    13  feasible actions to achieve the reductions required by this section.
    14    6.  The  requirements  of  subdivision three of this section shall not
    15  apply to reusable or refillable packaging or containers.
    16  § 27-3433. Establishment of the office of recycling inspector general.
    17    1. The commissioner shall establish an independent office of recycling
    18  inspector general within the department. The recycling inspector general
    19  shall evaluate the programs created pursuant to this title on an  annual
    20  basis  and shall ensure such programs are functioning properly, and that
    21  all producers are in compliance with the requirements of this title.
    22    2. The recycling inspector general shall have the authority to  inves-
    23  tigate  the  compliance  of  producers  and  the  organization  with all
    24  provisions of this title and to bring enforcement actions for violations
    25  of this title pursuant to the provisions  of  section  27-3435  of  this
    26  title.
    27  § 27-3435. Penalties and enforcement.
    28    1. Failure to comply with the requirements of this title shall subject
    29  the  organization or an individual producer to penalties for violations.
    30  The department, recycling inspector general, or  attorney  general,  may
    31  conduct investigations, including inspecting operations, facilities, and
    32  records of producers and organizations, and performing audits of produc-
    33  ers and organizations, to determine whether such producers and organiza-
    34  tions are complying with the requirements of this title.
    35    2.  The  department,  the recycling inspector general, or the attorney
    36  general, shall notify an organization or  producer  of  any  conduct  or
    37  practice that does not comply with the requirements of this title and of
    38  any inconsistencies identified in an audit.
    39    3.  The  department, the recycling inspector general, and the attorney
    40  general, may issue a notice of violation to, and impose  an  administra-
    41  tive  civil  penalty  not  to  exceed  one  thousand dollars per day per
    42  violation on any entity not in compliance with this title or any of  the
    43  regulations  the  department  adopts  to  implement  this title. For the
    44  purposes of this section, each product line that is  sold,  offered  for
    45  sale,  or  distributed  to  consumers  via retail commerce in the state,
    46  including through an internet transaction, shall be considered  a  sepa-
    47  rate violation.
    48    4. Civil penalties under this section shall be assessed by the depart-
    49  ment  after  an  opportunity  to  be heard pursuant to the provisions of
    50  section 71-1709 of this chapter, or  by  the  court  in  any  action  or
    51  proceeding  pursuant to section 71-2727 of this chapter, and in addition
    52  thereto, such person or entity may by similar process be  enjoined  from
    53  continuing such violation and any permit, registration or other approval
    54  issued  by  the  department  may  be  revoked  or suspended or a pending
    55  renewal denied.
    56  § 27-3437. Rules and regulations.

        S. 4246--B                         23
 
     1    1. Within eighteen months after the effective date  of  this  section,
     2  the  department  shall promulgate all rules and regulations necessary to
     3  implement, administer, and enforce the provisions of this title.
     4    2. When promulgating rules pursuant to the provisions of this section,
     5  the  department shall solicit input from the public of any draft rule or
     6  regulation to implement this section, including at a minimum  a  ninety-
     7  day comment period and one public hearing on such draft rules.
     8  § 27-3439. State preemption.
     9    Jurisdiction in all matters pertaining to costs and funding mechanisms
    10  of  packaging  reduction  and  recycling  organizations  relating to the
    11  recovery of packaging materials shall, by this title, be  vested  exclu-
    12  sively in the state; provided, however, that nothing in this title shall
    13  preclude  any  city,  town,  village  or other local planning units from
    14  determining what materials shall be included for recycling  in  a  local
    15  government  recycling  collection  program  or shall preclude any person
    16  from coordinating, for recycling or reuse, the collection  of  packaging
    17  materials and products.
    18  § 27-3441. Other assistance programs.
    19    Nothing  in  this  title shall impact any producer eligibility for any
    20  state or local incentive or assistance program to which they are  other-
    21  wise eligible.
    22  § 27-3443. Severability.
    23    The  provisions  of  this  title shall be severable and if any phrase,
    24  clause, sentence or provision of this title or the applicability thereof
    25  to any person or circumstance shall be held invalid,  the  remainder  of
    26  this title and the application thereof shall not be affected thereby.
    27    §  3.  The  environmental  conservation law is amended by adding a new
    28  section 37-0202 to read as follows:
    29  § 37-0202. Applicability.
    30    This article shall only have effect to the extent  that  the  prohibi-
    31  tions  in  this title are not otherwise substantially given effect or in
    32  conflict with the provisions of title thirty-four of article twenty-sev-
    33  en of this chapter.
    34    § 4. This act shall take effect immediately.
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