SB0345 102ND GENERAL ASSEMBLY

LRB102 13471 CPF 18818 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0345

Introduced 2/19/2021, by Sen. Melinda Bush

SYNOPSIS AS INTRODUCED:

See Index

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

Section 5. Findings and purpose. The General Assembly finds that:

(1) Based on data contained in the Illinois Commodity Waste Generation and Characterization Study, commissioned in 2014 by the Illinois Department of Commerce and Economic Opportunity, approximately 229,000 tons of carpet and carpet padding are landfilled each year, 1.5% of the total waste landfilled in this State.

(2) Old carpet and padding are currently being recycled in this State at a carpet recycling rate estimated to be less than 1%, compared to a 15.6% carpet recycling rate for the fourth quarter of 2018 in California, which has enacted Extended Producer Responsibility legislation for carpet.

(3) Carpet recycling can be significantly expanded by utilizing an Extended Producer Responsibility approach which will lead to job creation through the collection, processing, and marketing of old carpet and padding. In California, this approach has created approximately 150 direct jobs.

(4) According to the U.S. Environmental Protection Agency, the carpet recycling of old carpet has a positive impact on the reduction of greenhouse gases when compared to the landfilling or incineration of old carpet, which increases the generation of greenhouse gases.

Section 10. Definitions. In this Act:

"Agency" means the Illinois Environmental Protection Agency.

"Blended carpet" means carpet with a nonuniform face fiber, which is manufactured with multiple polymer types, fiber types, or both, in the face of the constructed material.

"Brand" means a name, symbol, word, or mark that identifies the carpet, rather than its components, and attributes the product to the owner or licensee of the brand as the producer.

"Carpet" means a manufactured article that is (i) used in commercial buildings or single or multifamily residential buildings, (ii) affixed or placed on the floor or building walking surface as a decorative or functional building interior or exterior feature, and (iii) primarily constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials. "Carpet" includes, but is not limited to, a commercial or residential broadloom carpet, modular carpet tiles, and artificial turf. "Carpet" includes a pad or underlayment used in conjunction with a carpet. "Carpet" does not include handmade rugs, area rugs, or mats.

"Carpet recycling" means the process by which old carpet is collected, processed, and returned to the economic mainstream in the form of raw materials or products. "Carpet recycling" is further defined to include only those pounds of old carpet that are an output of a recycling facility destined for an end market or carpet reuse and is not meant to mean the gross input pounds of old carpet accepted by a recycling facility. "Carpet recycling" does not include energy recovery or energy generation by means of combusting old carpet, and it does not include any disposal or use of old carpet within the permitted boundaries of a municipal solid waste landfill unit.

"Carpet recycling rate" means the percentage of old carpet that is managed through carpet recycling or carpet reuse, as defined by this Act, and is computed by dividing the amount of old carpet that is collected and recycled or reused by the total amount of old carpet that is generated over a program year. To determine the annual carpet recycling rates required by this Act the amount of old carpet generated shall be calculated using an industry standard calculation based on annual sales, replacement rate, and the average weight of carpet.

"Carpet reuse" means donating or selling an old carpet back into the market for its original intended use, when the old carpet retains its original purpose and performance characteristics.

"Clearinghouse" means the entity incorporated as a nonprofit within the meaning of 26 U.S.C. 501 representing carpet producers, and other designated representatives who are cooperating with one another to collectively establish and operate an old carpet carpet recycling and carpet reuse program for the purpose of complying with this Act.

"Clearinghouse plan" means a single, detailed plan prepared by the clearinghouse that includes all the information required by this Act.

"Collection" means any method of consolidating and temporarily storing old carpet.

"Collection site" means a site managed by a clearinghouse-approved collector to collect and temporarily store old carpet as provided by this Act.

"Collector" means any public or private entity approved by the clearinghouse that provides old carpet collection services.

"Comptroller" means the Comptroller of the State of Illinois.

"Consumer" means any person who makes a purchase at retail.

"Distributor" or "wholesaler" means a person who buys or otherwise acquires carpet from another source and sells or offers to sell that carpet to retailers in this State.

"Installer" means any person or entity contracted for the purpose of installing flooring where old carpet is removed.

"Nylon carpet" means carpet made with a uniform face fiber made with either nylon 6 or nylon 6,6.

"Old carpet" means carpet that is no longer used for its manufactured purpose.

"Person" means any individual, partnership, co-partnership, firm, company, corporation, association, joint stock company, trust, estate, political subdivision, State agency, or any other legal entity, or their legal representative, agent, or assign.

"PET carpet" means carpet made from polyethylene terephthalate.

"Polypropylene carpet" means carpet made from polypropylene.

"Processor" means a public or private entity approved by the clearinghouse to prepare old carpet for reuse, recycling, or disposal that uses industry recognized processes, such as shredding, grinding, sheering, depolymerization, or other methods recognized by the clearinghouse, to convert old carpet into finished recycled output ready to be used as an input material for secondary products.

"Producer" means a person who manufactures carpet that is sold, offered for sale, or distributed in this State. Producer includes any person who imports carpet into the United States that is sold, offered for sale, or distributed in this State and that is manufactured by a person who does not manufacture the carpet in the United States. "Producer" does not include a retailer that trademarks or brands carpet that is sold, offered for sale, or distributed in this State that is manufactured by a person other than the retailer.

"Program year" means a calendar year. The first program year is 2021.

"PTT carpet" means carpet made from polytrimethylene terephthalate.

"Retailer" means any person engaged in the business of making sales at retail that generate occupation or use tax revenue. "Retailer" does not include a distributor, producer, or wholesaler, as those terms are defined in this Section.

"Roll-off dumpster" means a waste container that holds at least 40 cubic yards or waste.

"Sale" or "sell" means a transfer of title to carpet for consideration, including a remote sale conducted through a sales outlet, catalog, website, or similar electronic means. "Sale" or "sell" includes a lease through which carpet is provided to a consumer by a producer, distributor, or retailer.

"Semitrailer" means any vehicle without motive power, other than a pole trailer, designed for carrying persons or property and for being drawn by a motor vehicle and so constructed that some part of its weight and that of its load rests upon or is carried by another vehicle.

"Sorter" means a public or private entity approved by the clearinghouse that performs the sorting of old carpet for third-party reuse.

"Sorting" means the method used for sorting old carpet into its various backing types or fiber types.

"Stewardship assessment" means the amount added to the purchase price of carpet sold in this State that is necessary to cover the cost of collecting, transporting, processing and marketing old carpet by the clearinghouse pursuant to the clearinghouse plan, and shall not be used to pay for any fines or penalties levied pursuant to this Act or for the final disposal or incineration of old carpet.

"Wool carpet" means carpet made from wool.

Section 15. Formation, duties and powers of the Clearinghouse.

(a) To administer the carpet stewardship program a clearinghouse shall be incorporated as a nonprofit, and shall consist of the following members, to be appointed by the Director of the Agency:

(1) one individual who is a representative of a statewide association representing retailers;

(2) two individuals who are representatives of carpet producers;

(3) one individual who is a representative of a national association representing manufacturers of carpet;

(4) two individuals who are representatives of carpet recyclers;

(5) two individuals who are representatives of a statewide association representing waste disposal companies;

(6) two individuals who are representatives of environmental organizations;

(7) two individuals who are representatives of county or municipal joint action agency waste management programs;

(8) one individual who is a representative of a company that utilizes old carpet to manufacture a new product, not including new carpet; and

(9) one individual who is a representative of an association representing installers of carpet.

(b) Members of the clearinghouse shall serve without compensation but shall be reimbursed for travel expenses with proceeds from the stewardship assessment, and the Agency shall be responsible for monitoring these expenses. Members shall serve on the clearinghouse until a successor is appointed and qualified.

(c) The clearinghouse's duties include, but are not limited to:

(1) preparing the clearinghouse plan, and any required amendments, in compliance with this Act;

(2) implementing the clearinghouse plan;

(3) approving collectors, sorters, and processors to provide services under this Act;

(4) creating and administering a grant program to assist in subsidizing the costs to collect, process, or market old carpet for carpet reuse or carpet recycling;

(5) being responsible for meeting the performance goals specified by this Act;

(6) submitting annual program reports as required by this Act;

(7) submitting to the Agency in the clearinghouse plan any increases or decreases in the stewardship assessment; and

(8) overseeing an annual audit of the carpet stewardship program's revenues and expenditures, and reporting those findings to the Comptroller.

(d) The clearinghouse may hire a director and necessary staff, and may organize itself into committees to implement this Act, which shall be funded by the stewardship assessment. The Agency shall monitor these expenses.

Section 20. Carpet stewardship program and sale requirement.

(a) For all carpet sold in this State, the clearinghouse shall implement and finance a statewide carpet stewardship program that: manages carpet by reducing its waste generation; promotes its carpet recycling and carpet reuse; and provides for negotiation and execution of agreements to collect, transport, process, or market the old carpet for end-of-life carpet recycling or carpet reuse.

(b) On and after January 1, 2021, a producer or distributor that offers carpet for sale in this State is not in compliance with this Act and is subject to penalties under Section 70 if the carpet stewardship assessment fee is not added to the purchase price of the carpet offered for sale pursuant to Section 35.

Section 25. Clearinghouse plan.

(a) By July 1, 2020 and by July 1 every 3 years thereafter, beginning with program year 2021, the clearinghouse shall submit a 3-year plan to the Agency and receive approval of the plan. The clearinghouse plan shall include, at a minimum, each of the following:

(1) Certification that the carpet stewardship program will accept for collection all old carpet, regardless of type or which producer manufactured the product and its individual components.

(2) Contact information for each individual representing the clearinghouse, designation of a program manager responsible for administering the program in this State, a list of all producers participating in the carpet stewardship program, and the brands covered by the product stewardship program.

(3) A description of the methods by which old carpet will be collected in this State, including an explanation of how the collection system will achieve a convenience standard of having collection sites in all counties with a population density of greater than or equal to 100 individuals per square mile in this State by January 1, 2021 for program year 2021, and all counties with a population density of greater than or equal to 50 individuals per square mile for program year 2022 and thereafter.

(4) An evaluation, beginning with the second three-year plan submitted by July 1, 2023, of the feasibility and cost of expanding the convenience standard to at least one collection site in every county in the State.

(5) A description of how the adequacy of the collection program will be monitored, evaluated, and maintained.

(6) The names and locations of collectors, sorters, and processors who have been approved by the clearinghouse to manage old carpet.

(7) A description of how the old carpet and the products' components will be safely and securely transported, tracked, and handled from collection through final carpet recycling and processing.

(8) A description of the methods to be used to reuse, deconstruct, or recycle old carpet to ensure that the products' components, to the extent feasible, are transformed or remanufactured into finished products for use.

(9) A description of the methods to be used to manage or dispose of old carpet that cannot be carpet recycled or carpet reused.

(10) A description of the promotion and outreach activities and proposed budget that will be used to encourage participation in the collection and carpet recycling programs and how the activities' effectiveness will be evaluated and the program modified, if necessary.

(11) Evidence of adequate insurance or financial assurance for any person that may be involved in collection, handling, or disposal operations.

(12) A 3-year rolling performance goal, including an estimate of the percentage of old carpet that will be collected, carpet reused, and carpet recycled during each of the next 3 years of the stewardship plan, with a minimum goal of achieving a 25% carpet recycling rate by December 31, 2023. The performance goals shall include a specific goal for the amount of old carpet that will be collected, carpet recycled, and carpet reused during each year of the plan. The performance goals must be based on:

(A) the most recent collection data available for this State;

(B) the estimated amount of old carpet disposed of annually;

(C) the weight of the old carpet that is expected to be available for collection annually; and

(D) actual collection data from other existing carpet stewardship programs.

The clearinghouse plan must state the methodology used to determine these goals. By March 1, 2023, the clearinghouse shall establish a recycling rate goal for the 3-year plan period beginning January 1, 2024. Thereafter, the clearinghouse shall establish a carpet recycling rate goal for each subsequent 3-year plan period by March 1 of the calendar year preceding the first year of that 3-year plan period.

(13) A discussion of the status of end markets for old carpet and what, if any, additional end markets are needed to improve the functioning of the program.

(14) A discussion of carpet design and manufacturing changes that the producers are considering or have implemented in order to reduce toxicity, water use, or energy use associated with the production of carpet and efforts to increase the recycled content, recyclability, or carpet longevity.

(15) A funding mechanism consistent with Section 35 that demonstrates sufficient funding to carry out the plan, including the administrative, operational, and capital costs of the plan, and payment of incentive payments to carpet collectors, processors, and end use markets to assist with the implementation of this Act.

(16) Annual budgets showing revenue and expenditure projections for the current program year and projected for the next 2 years of the program.

(17) A process by which the financial activities of the clearinghouse that are related to the implementation of the plan shall be subject to an annual independent audit, which shall be reviewed by the Comptroller.

(18) A description of an educational program and materials that shall be implemented and used to train operators of collection sites on how to properly collect old carpet and reduce contamination. At no time shall a collection site be subject to a fine or extra charge for contamination by either the clearinghouse or a carpet processor. However, collection sites that continue to ship contaminated old carpet to processors may be removed from the stewardship program by the clearinghouse.

(19) Baseline information, for the most current year for which data is available, on the amount of square feet and pounds of carpet sold in this State, by type of polymer or non-polymer material used to make the carpet.

(20) A discussion of the feasibility, cost, and effectiveness of labeling the backside of new carpet with the polymer type or non-polymer material used to manufacture the carpet to assist processors in more easily identifying the type of old carpet collected for processing.

(21) A description of the program that shall be implemented to train carpet installers on how to properly manage old carpet so that it can be carpet reused or carpet recycled pursuant to this Act, including, but not limited to, the development of videos and written materials regarding the carpet recycling program.

(b) An update to the plan shall be submitted, at a minimum, every 3 years, or if the Agency determines that a plan update is needed, prior to the minimum of once every 3 years.

(c) The clearinghouse shall notify the Agency within 30 days of any significant changes or modifications to the plan or its implementation. Within 30 days of the notification, a written plan revision shall be submitted to the Agency for review and approval.

Section 30. Review and approval of the clearinghouse plan and plan updates.

(a) Within 90 days after receipt of the proposed plan or plan update, the Agency shall determine whether the plan or plan update complies with Section 25. If the Agency approves a plan or plan update, the Agency shall notify the clearinghouse of the plan approval in writing within 14 days of receipt. If the Agency rejects a plan or plan update, the Agency shall notify the clearinghouse in writing of the reasons for rejecting the plan within 14 days of receipt. The clearinghouse shall submit a revised plan to the Agency within 60 days after receiving notice of rejection. Any proposed changes to a plan or plan update must be approved by the Agency in writing.

(b) The clearinghouse plan and plan updates approved by the Agency shall be placed on the Agency's website and made available at the Agency's headquarters for public review within 30 days of the Agency's approval.

Section 32. Implementation of clearinghouse plan. The clearinghouse shall implement the clearinghouse plan components under subsection (a) of Section 25 upon approval of the clearinghouse plan or plan update by the Agency under Section 30. The Agency shall monitor the clearinghouse's implementation of the clearinghouse plan and shall have the authority to require specific action by the clearinghouse to meets its clearinghouse plan implementation requirements under this Section.

Section 35. Carpet stewardship assessment.

(a) On and after January 1, 2020 a producer of carpet shall add a carpet stewardship assessment fee of 4 cents per square foot to the purchase price of nylon carpet, polypropylene carpet, and wool carpet, and 6 cents per square foot to the purchase price of PET carpet, PTT carpet, and blended carpet sold in this State by that producer. The assessment added under this Section shall be remitted by the producer on a quarterly basis to the clearinghouse. The amount each producer pays in assessments shall be considered proprietary information that is privileged or confidential and shall not be disclosed to the clearinghouse or the public. However, in order to determine if each producer is paying the proper assessments, an independent professional accounting firm shall be hired by the clearinghouse to review and verify the quarterly square foot sales data by carpet type provided by each producer and the quarterly payments remitted to the clearinghouse by each producer.

(b) Notwithstanding any provision of law to the contrary, the assessment established under this Section is exempt from taxes imposed by the Illinois Department of Revenue and shall meet both of the following requirements:

(1) The assessment shall be added by the producer to the purchase price of all carpet sold by producers to an Illinois retailer or distributor or otherwise sold for use in this State. Retailers and distributors shall have at least 120 calendar days after the date the carpet is sold to provide producers with the assessment. The assessment shall be clearly visible on all invoices or functionally equivalent billing documents as a separate line item and shall be accompanied by a brief description of the assessment.

(2) Each retailer and distributor shall add the assessment to the purchase price of all carpet sold in this State. The assessment shall be clearly visible on all invoices or functionally equivalent billing documents as a separate line item and shall be accompanied by a brief description of the assessment.

(c) It is the intent of the General Assembly that the amount of the assessment fee be reduced by the clearinghouse as the carpet stewardship program is implemented over time and becomes more efficient.

(d) If the amount of the assessment is too low to properly fund the carpet stewardship program the clearinghouse may adopt rules increasing the assessment fee, which must be approved by the Joint Committee on Administrative Rules prior to the fee being increased.

(e) The assessment shall be lowered if at any time the fee generates a fund balance at the end of a program year that is greater than one year's operating costs of the carpet stewardship program. If a fund balance greater than one year's operating cost is reached, the clearinghouse shall adopt rules decreasing the assessment fee, which must be approved by the Joint Committee on Administrative Rules prior to the fee being decreased.

(f) The assessment fee shall be deposited by the clearinghouse into an Illinois chartered bank, and if for any reason this Act is repealed, the entire assessment fund balance shall be transferred by the clearinghouse to the State of Illinois to be deposited into the Solid Waste Management Fund.

Section 36. Collection of discarded carpet.

(a) No later than June 1, 2023, in any county with a population of greater than 200,000 people, any installer engaged in removing old carpet from a residence or business must transport, or contract to transport, all old carpet to a clearinghouse-approved old carpet collection site as defined in Section 10.

(b) Approved carpet collection sites as defined in Section 10 shall ensure that old carpet is collected in the prescribed conditions required by the clearinghouse plan. The conditions must also include, but are not limited to, the following requirements:

(1) Discarded carpet must be kept in a location that allows it to remain dry at all times.

(2) Containers holding collected old carpet must be free of all non-carpet discarded waste items.

(3) Prior to shipment to a recycler, containers holding discarded carpet must be filled to the following minimum standards:

(A) Roll off dumpsters shall be filled to a minimum of 8 tons.

(B) Semitrailers shall be filled to a minimum of 13 tons.

(4) Approved collection sites must permit an approved recycler's prescribed container to be housed on site for loading by the collector for pickup at the collection site.

(c) Any approved collection site that has collected old carpet as prescribed by the clearinghouse plan and whose full container volume is not removed by a registered recycler upon 3-business day's electronic notice to the recycler stating that collected old carpet is ready for removal may dispose of that container's contents in a landfill. For purposes of this Act, old carpet collected by a clearinghouse certified entity at a regulated waste transfer station or landfill shall not be considered as being stored under the terms of any applicable waste disposal permit, and shall not impact the status of an existing waste disposal permit, until the seventh business day after electronic notice has been given to the recycler stating that collected old carpet is ready for removal.

Section 37. Economic support for approved carpet collection sites. The clearinghouse shall use revenues from the carpet stewardship assessment fee to pay approved old carpet collection sites for costs, services, and infrastructure improvements as follows:

(1) Reimbursement for reasonable costs, as pre-approved by the clearinghouse, to adapt sites for old carpet collection as required by this Act, including, but not limited to, one-time costs for constructing the needed structure to make the collection of carpet safe and convenient, and to ensure adequate room to maneuver old carpet collection equipment in such a manner so as to not disrupt the normal flow of activity at the collection site.

(2) A recovery fee equivalent to $20.00 per ton for all carpet collected that is subject to this Act and loaded into trailers at the collector's site in accordance with subsection (b) of Section 36.

(3) Approved carpet collection sites located at waste transfer or waste disposal facilities permitted by the Agency may, at their discretion, charge the generator of such discarded carpet customary and proprietary collection and disposal fees.

(4) Approved carpet collection sites may not charge a processor any fee for removal of carpet discarded from the collection site location.

(5) Economic support for approved carpet collectors under this Section shall be reviewed every 3 years as clearinghouse plans are submitted to the Agency.

Section 40. State action antitrust exemption. Each producer and the clearinghouse shall be immune from liability for any claim of violation of antitrust law or unfair trade practice if the conduct is a violation of antitrust law, to the extent the producer or clearinghouse is exercising authority under the provisions of this Act.

Section 45. Requirements applicable to producers.

(a) On and after January 1, 2020, a producer of carpet shall add the stewardship assessment, as established in Section 35, to the cost of carpet sold to retailers and distributors in this State by the producer.

(b) Producers, working with the clearinghouse, shall provide consumers with educational materials regarding the stewardship assessment and carpet stewardship program as required by paragraph (1) of subsection (b) of Section 35 of this Act. The materials shall include, but are not limited to, (i) information regarding available end-of-life management options for old carpet offered through the carpet stewardship program and (ii) information that notifies the consumers that a charge for the operation of the carpet stewardship program is included in the purchase price of carpet sold in this State.

(c) Producers who sell carpet in this State shall register with the Agency by January 1, 2020 and annually thereafter for as long as that producer sells carpet in this State.

Section 50. Requirements applicable to retailers and distributors.

(a) On and after January 1, 2020, no carpet may be sold in this State unless the carpet's producer has registered with the Agency under subsection (c) of Section 45.

(b) Any retailer or distributor may participate, on a voluntary basis, as a designated collection point pursuant to a product stewardship program and in accordance with applicable law.

(c) No retailer or distributor shall be found to be in violation of this Section if, on the date the carpet was ordered from the producer or its agent, the producer was registered on the Agency's website in accordance with this Act.

(d) Retailers shall provide consumers with educational materials, developed by producers and the clearinghouse, that shall include, but are not limited to, information that (i) regards available end-of-life management options for old carpet, and (ii) notifies the consumer that a charge for the operation of the stewardship program is included in the purchase price of carpet sold in the State.

Section 55. Requirements applicable to the Agency.

(a) Beginning March 1, 2020, and annually thereafter, the Agency shall post on its website the list of carpet producers that registered with the Agency, in accordance with subsection (c) of Section 45.

(b) Beginning January 1, 2021, and annually thereafter, for the benefit of assisting consumers who wish to find collection sites for recycling carpet, the Agency shall post on its website the location of all collection sites identified to the Agency by the clearinghouse in its plans and annual reports.

(c) The Agency shall post on its website the plan as approved by the Agency and any subsequent updates within 30 days of approval pursuant to Section 30.

(d) Beginning May 1, 2022, and annually thereafter, the Agency shall post on its website copies of the annual reports.

Section 60. Annual stewardship reports.

(a) By April 1, 2022, and by April 1 of each year thereafter, the clearinghouse shall submit a report to the Agency that includes, for the previous program year, a description of the carpet stewardship program, including, but not limited to, the following:

(1) the amount of carpet sold by square feet and pounds in this State during the reporting period by polymer type or non-polymer material, including a separate reporting of the amount of carpet sold in this State for which the carpet stewardship assessment was collected;

(2) a description of the methods used to collect, transport, and process old carpet in regions of this State, and a listing of the persons used to collect, transport, and process old carpet;

(3) identification of all old carpet collection sites in this State and whether the requirement of paragraph (3) of subsection (a) of Section 25 has been met;

(4) the weight of all old carpet collected and carpet reused or carpet recycled in all regions of this State, a comparison to the performance goals and carpet recycling rates established in the clearinghouse plan, and, if appropriate, an explanation stating the reason or reasons performance goals were not met;

(5) the weight of old carpet collected in this State but not carpet reused or carpet recycled and its ultimate disposition, and a comparison to the performance goals in the clearinghouse plan;

(6) the total cost of implementing the clearinghouse plan and a copy of the independent audit regarding the financial activities of the clearinghouse;

(7) a proposed budget for implementing the clearinghouse plan in the subsequent calendar year;

(8) an evaluation of the funding mechanism and its ability to properly fund the implementation of the clearinghouse plan, including whether the incentive payments to collectors, processors, and end markets for managing carpet are adequate to ensure that the old carpet can be carpet reused or carpet recycled under the program;

(9) identification of the facilities processing carpet, the weight processed at each facility, and each facility's processing capacity;

(10) an evaluation of the effectiveness of the clearinghouse plan, and anticipated steps, if needed, to improve performance;

(11) a discussion of progress made toward achieving carpet design changes according to paragraph (14) of subsection (a) of Section 25; and

(12) samples of educational materials provided to consumers and carpet installers, and an evaluation of the effectiveness of the materials and the methods used to disseminate the materials. The evaluation shall include, but shall not be limited to, information on the number of consumers and carpet installers that received or viewed the educational materials, and any consumer and carpet installer survey data that may have been collected regarding the educational materials used.

Section 65. Administrative fee.

(a) The clearinghouse shall pay the Agency an annual administrative fee of $200,000 which may be paid for from revenue from the carpet stewardship assessment.

(b) The clearinghouse shall pay the Agency's administrative fee under subsection (a) on or before January 1, 2021, and annually thereafter.

(c) The Agency shall deposit the fees collected under this Section into the Solid Waste Management Fund.

Section 70. Enforcement.

(a) On and after January 1, 2020, no producer, distributor, or retailer shall sell or offer for sale carpet to any person in this State if the producer of the carpet is not registered with the Agency pursuant to subsection (c) of Section 45 or has not remitted the assessment pursuant to Section 35.

(b) No retailer or distributor shall be found in violation of the provisions of subsection (a) if, on the date the carpet was ordered from the producer or its agent, the producer was listed on the Agency's website in accordance with the provisions of subsection (a) of Section 55.

(c) The Attorney General or State's Attorney may request, and a Court may impose, after providing notice and opportunity to be heard, a civil penalty in the amount of $5,000 per day per violation against any producer who violates the registration requirements under subsection (c) of Section 45 or who fails to remit the assessment under Section 35.

(d) Nothing in this Act prohibits a retailer or distributor from selling their inventory of carpet existing prior to January 1, 2020.

(e) The penalties provided for in this Section may be recovered in a civil action brought in the name of the People of the State of Illinois by the State's Attorney of the county in which the violation occurred or by the Attorney General. Any funds collected under this Section in an action in which the Attorney General has prevailed shall be deposited in the Environmental Protection Trust Fund, to be used in accordance with the provisions of the Environmental Trust Fund Act.

(f) Nothing in this Act mandates or otherwise requires and nothing in the clearinghouse plan shall mandate or otherwise require participation of the waste disposal industry in the carpet stewardship program created by this Act.

Section 75. State procurement of carpet. Beginning on January 1, 2022, at least 35% of carpet purchased by State agencies shall be carpet with a minimum of 10% post-consumer recycled content by weight from old carpet and comply with the National Science Foundation/American National Standards Institute (NSF/ANSI) 140-2009 Standard, Platinum Level or the most current version in effect as provided by the American National Standards Institute. The carpet shall be purchased from a carpet producer with a third party certified closed loop recycling facility. Thereafter, those purchases shall increase by a rate of 10% per year until it reaches 75%. Prior to January 1, 2022, the clearinghouse shall provide a report to the Illinois Department of Central Management Services on the other types of products that contain recycled carpet as a feedstock that the State should consider purchasing.

Section 99. Effective date. This Act takes effect upon becoming law.