SB1394 104TH GENERAL ASSEMBLY

LRB104 06517 BDA 16553 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1394

Introduced 1/29/2025, by Sen. David Koehler

SYNOPSIS AS INTRODUCED:

New Act

Creates the Household Hazardous Waste Stewardship Act. Requires manufacturers, beginning January 1, 2027, to implement a stewardship program for covered products. Details manufacturer obligations under the stewardship program, including in the context of a stewardship organization comprised of manufacturers. Requires registration by April 1, 2026, and annually, for each manufacturer who sells covered products in the State and each stewardship organization. Details the roles of retailers and collections sites. Outlines stewardship plan components. Provides requirements for the Environmental Protection Agency for stewardship plan approval. Details requirements for a stewardship organization implementing a stewardship plan, as well as other statewide collection requirements. Details reporting requirements. Requires a stewardship organization to pay to the Agency an annual fee of $200,000, split if there is more than one stewardship organization. Provides for responsibilities for the Agency. Provides for immunity from antitrust laws. Provides for rulemaking authority for the Agency. Provides for civil and criminal penalties. Allows collection of covered products by a premium collection service. Makes findings. Defines terms. Effective immediately.

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 Household Hazardous Waste Stewardship Act.

Section 5. Findings. The General Assembly finds that:

(1) It is in the best interest of the State of Illinois for manufacturers of products for household use that contain hazardous substances to assume responsibility for the development, financing, and implementation of a statewide stewardship program that conveniently serves all areas of the State for the collection and environmentally sound management of waste from those products. There are hundreds of products purchased by consumers that contain hazardous substances, including, but not limited to, aerosol products, fertilizers, herbicides, pesticides, fluorescent lamps, furniture stripper and varnish, gasoline, kerosene, used oil, antifreeze, electronic cigarettes, household cleaners, solvent cleaners, and pool or hot tub chemicals.

(2) Improper management and disposal of household hazardous waste is a threat to public health and the environment.

(3) In 1991, the need for household hazardous waste collection programs throughout the State was recognized and the Household Hazardous Waste Collection Act was enacted. Since then, the Illinois Environmental Protection Agency and local governments have worked together to support collection events and develop 5 permanent household hazardous waste collection facilities. However, these existing services do not provide convenient collection services statewide, and the cost of these programs for the Agency and local governments exceeds $6,000,000 annually.

Section 10. Definitions. In this Act:

"Agency" means the Illinois Environmental Protection Agency.

"Agency contractor" means the company under a contractual agreement with the Agency to provide transportation and final disposition of covered products collected by collection sites.

"Antifreeze" means propylene glycol or ethylene glycol, including aggregated batches of propylene glycol or ethylene glycol, used as a heat transfer medium in an internal combustion engine; heating, ventilating, and air conditioning units; and electronics cooling applications; or used for winterizing equipment.

"Brand" means a name, symbols, words, or marks that identify a covered product and attribute the product to the owner of the brand as the manufacturer.

"Collection cost" means costs related to the collection of covered products, including, but not limited to, facility siting costs; facility permitting costs; facility construction costs; facility maintenance costs; equipment costs; fork lift costs; truck costs; labor and benefits; costs for supplies, including traffic control devices, test kits for unknown waste, tape, plastic sheeting, and spill clean-up kits; building and equipment maintenance costs; event costs, including marketing costs; third-party contractor costs, including event set-up costs; environmental service fees; insurance fees; costs for shipping containers and materials; pallet costs; and personal protective equipment costs.

"Collection site" means a permanent facility permitted by the Agency to accept, manage, and store covered products or a location where a one-day collection event is held to collect covered products which are then transported offsite for proper management.

"Covered entity" means any person who presents a covered product to a collection site from that person's use at a household, with the exception of large quantity generators, small quantity generators, or very small quantity generators.

"Covered product" means any product offered for retail sale for household use contained in the receptacle in which the product is offered for retail sale, except for used oil, antifreeze, gasoline, and kerosene, if the product has any of the following characteristics:

(1) the physical properties of the product meet the criteria for characteristic wastes under the federal Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901 et seq., including ignitability, corrosivity, reactivity or toxicity as defined in 40 CFR 261.20 to 261.24;

(2) the physical properties of the product meet the criteria for designation as a class 2, 3, 4, 5, 6 or 8 hazardous material, as defined in 49 CFR 173, by the United States Department of Transportation under the Hazardous Materials Transportation Act of 1975, 49 U.S.C. 5101 et seq.; or

(3) the product requires registration under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. 136.

"Covered product" includes:

(1) automotive fluids, including household "do it yourselfer" used oil, as defined in 35 Ill. Adm. Code 739.100, and antifreeze; and

(2) a product added by rule under Section 70 of this Act.

"Covered product" does not include:

(1) a covered battery, as defined in the Portable and Medium-Format Battery Stewardship Act;

(2) a drug, as defined in 21 U.S.C. 321(g)(1); a biological product, as defined in 42 U.S.C. 262(i); a device, as defined by 21 U.S.C. 3231(h)(1); or any combination of those items;

(3) products sold for commercial agricultural use that require registration under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. 136;

(4) architectural paint or any other covered product, as defined in the Paint Stewardship Act;

(5) a covered electronic device, as defined in the Consumer Electronics Recycling Act;

(6) a vitamin or dietary supplement;

(7) a liquefied petroleum or other gas container, cylinder or receptacle;

(8) a fire extinguisher;

(9) an oil filter;

(10) a smoke detector, ionizing type;

(11) ammunition, fireworks, explosives projectile marine flares;

(12) potentially infectious medical waste, as defined in Section 3.360 of the Illinois Environmental Protection Act;

(13) electronic cigarettes, as defined in the Prevention of Tobacco Use by Persons under 21 Years of Age and Sale and Distribution of Tobacco Products Act, and their apparatuses, including, but not limited to, vape pods;

(14) an antimicrobial product that requires registration under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. 136, and is labeled in accordance with federal requirements for pesticide products intended for household use only; and

(15) a product that is subtracted by rule under Section 70 of this Act.

"Disposal cost" means the costs related to the final disposition of the collected covered products.

"Environmental justice community" means environmental justice community, as defined in the Illinois Solar for All Program, as that definition is updated from time to time by the Illinois Power Agency and the Administrator of the Illinois Solar for All Program.

"Environmentally sound management" means management practices implemented in a manner that is designed to protect public health, safety, and the environment, including, but not limited to:

(1) adequate recordkeeping;

(2) keeping detailed documentation of the methods used to:

(A) manage covered products; and

(B) track and document the fate of covered products from collection through final disposition within this State and outside this State;

(3) performance audits and inspections;

(4) compliance with worker health and safety requirements; and

(5) maintenance of adequate environmental liability insurance and financial assurances for a stewardship organization and contractors working for the stewardship organization.

"Final disposition" means the point beyond which no further processing takes place and the covered product has been either transformed for direct use as a feedstock in producing new products, discarded in a manner approved by the Agency, processed for energy recovery in permitted facilities, or incinerated without energy recovery in permitted facilities.

"Manufacturer" means a person who:

(1) manufactures or manufactured a covered product under its own brand or label for sale in the State;

(2) sells in the State under its own brand or label a covered product produced by another supplier;

(3) owns a brand that it licenses or licensed to another person for use on a covered product sold in the State;

(4) imports a covered product manufactured by a person without a presence in the United States into the United States for sale in the United States;

(5) manufactures a covered product for sale in the State without affixing a brand name; or

(6) is the manufacturer of a covered product sold, offered for sale, or distributed in or into this State, as defined in this Section, except if another party has contractually accepted responsibility as a responsible manufacturer and has joined a stewardship organization as the manufacturer for that covered product.

"Manufacturer" does not include a person who manufacturers, sells, licenses, or imports less than $5,000,000 of covered products in or into the United States in a program year and provides documentation on an annual basis with a stewardship organization that it is not a manufacturer as defined by this Act.

"Orphan covered product" means a covered product for which no manufacturer can be identified.

"Person" has the meaning given to that term in Section 3.315 of the Environmental Protection Act.

"Premium collection service" means collection service provided at a location that is not a collection site such as at-home pickup service, including curbside pickup service.

"Program year" means a calendar year. The first program year is 2027.

"Retailer" means a person who first sells, through any means, including a sales outlet, catalog, the Internet, or electronic means, a covered product to a customer for residential use or any permanent establishment where merchandise is displayed, held, stored, or offered for sale to the public.

"Stewardship organization" means a manufacturer that directly implements a stewardship program required under this Act, a corporation designated by a manufacturer or group of manufacturers to implement a stewardship program under this Act, or a nonprofit organization designated by a manufacturer or group of manufacturers to implement a stewardship program under this Act.

"Stewardship plan" means a plan developed by a manufacturer or a stewardship organization that is consistent with this Act and approved by the Agency. "Stewardship program" means a program implemented by a stewardship organization consistent with this Act and the approved stewardship plan.

"Transfer facility" has the meaning given to that term in 35 Ill. Adm. Code 723.112.

"Transfer station" has the meaning given to that term in Section 3.500 of the Environmental Protection Act.

"Transportation cost" means the cost associated with loading and shipping covered products to a transfer station, transfer facility, or final disposition location.

Section 15. Requirement that manufacturers implement a stewardship program.

(a) Beginning January 1, 2027, a manufacturer selling, making available for sale, or distributing covered products in or into the State of Illinois shall participate in the approved stewardship plan.

(b) Beginning January 1, 2027, no manufacturer shall sell covered products covered by this Act in or into the State who does not participate in a stewardship organization and stewardship plan.

(c) Beginning January 1, 2027, no manufacturer shall sell covered products covered by this Act unless the product is labeled with a brand and the original manufacturer is identified on the label.

Section 20. Manufacturer obligations.

(a) A manufacturer shall establish, fund, and implement a stewardship program individually or collectively as part of a stewardship organization. The proportion of funding by manufacturers shall be:

(1) 100% of the collection cost for all collection sites in an approved stewardship program; and

(2) 50% of the transportation cost and disposal cost for covered products and orphan covered products in program year 2027, 60% in 2028, 70% in 2029, 80% in 2030 and thereafter manufacturers shall be responsible for 90% of the transportation cost and disposal cost for covered products and orphan covered products unless the Agency is not appropriated funding by the State in which case manufacturers shall be responsible for 100% of the transportation cost and disposal cost; and

(3) 100% of the collection cost, transportation cost, and disposal cost for collection sites operated by the stewardship organization.

(b) If there is more than one stewardship organization representing manufacturers, manufacturers shall jointly submit a single stewardship plan that meets the requirements of Section 40 and a single annual report that meets the requirements of Section 55.

(c) If there is more than one stewardship organization, manufacturers shall designate one stewardship organization to enter into mutual agreements with collection sites.

(d) Each stewardship organization shall equitably allocate stewardship program costs to manufacturers participating in the stewardship program. The method of cost allocation shall be included in the stewardship plan required under Section 40.

(e) A manufacturer, stewardship organization, or retailer shall not charge:

(1) a specific point-of-sale fee to a covered entity to recoup the costs of the stewardship program; or

(2) a specific fee at the time the covered products are collected from a covered entity.

(f) A manufacturer or stewardship organization shall not charge a fee to any person collecting covered products under this Act.

(g) Beginning January 1, 2027, units of local government and any person with a permanent collection site, an Agency sponsored one-day collection site, or a contractually obligated one-day collection site shall be included in the stewardship organization's plan and stewardship program and shall be counted toward complying with the collection requirements in Section 50. A stewardship organization must reimburse collection sites for collection costs incurred due to serving as a collection site for a stewardship program. A stewardship organization must establish a mutual agreement with each collection site and provide reimbursement for collection costs no less frequently than every 3 months.

(h) A stewardship organization must reimburse the Agency's contractor for transportation costs and disposal costs incurred by the Agency's contractor for the transportation cost and disposal cost incurred by the collection sites. A stewardship organization must establish a mutual agreement with the Agency and provide reimbursement to the Agency's contractor in compliance with the Agency's contract with its contractor.

(i) A stewardship organization must accept and fund the collection, transportation, and disposal costs associated with orphan covered products.

(j) A stewardship organization is not responsible for funding the cost associated with premium collection service.

Section 25. Manufacturer registration.

(a) By April 1, 2026, and by April 1 of each year thereafter for the upcoming program year, beginning with program year 2027, each manufacturer who sells covered products in the State must register with a stewardship organization by submitting to the stewardship organization a list of all the brands under which the manufacturer sells or offers for sale in the State. Each stewardship organization shall subsequently register with the Agency, on a form prescribed by the Agency, and provide a list of all the brands and manufacturers covered by the stewardship organization.

(b) By January 1, 2027, each stewardship organization shall post on the single, coordinated website, as required by Section 40, a list of all registered manufacturers and associated brands.

(c) Beginning in program year 2027, a manufacturer whose covered products are sold or offered for sale in this State for the first time on or after April 1 of the program year must register with a stewardship organization within 30 days after the date the covered products are first sold or offered for sale in the State. The stewardship organization must provide the Agency the name of the manufacturer and its brand or brands, in writing, within 30 days of the date the manufacturer registered with the stewardship organization.

(d) Beginning in program year 2027, no manufacturer may sell or offer to sell a covered product in this State unless the manufacturer is registered and operates a stewardship program either individually or as part of a stewardship organization.

Section 30. Role of retailers.

(a) Beginning July 1, 2027, a retailer may not sell, offer for sale, distribute, or otherwise make available for sale a covered product unless the manufacturer of the covered product is identified as a participant in a stewardship organization whose stewardship plan has been approved by the Agency.

(b) A retailer is not in violation of the requirements of subsection (a) of this Section if the website made available under subsection (b) of Section 25 lists the manufacturer as a participant in a stewardship organization whose stewardship plan has been approved by the Agency.

(c) A retailer selling or offering covered products for sale in the State shall provide information to covered entities, provided by the stewardship organization, regarding available end-of-life management options for covered products. The information that a stewardship organization must make available to retailers for use by retailers must include, but is not limited to, in-store signage, written materials, and other promotional materials that retailers may use to inform customers of the available end-of-life management options for covered products.

Section 35. Role of collection sites.

(a) Collection sites must keep accurate records to demonstrate collection costs associated with the stewardship program.

(b) Collection sites must provide data as required by a stewardship organization to comply with the requirements of Section 55.

Section 40. Stewardship plan components.

(a) By June 1, 2026, each stewardship organization must coordinate and submit to the Agency for approval a single stewardship plan for covered products. The Agency shall review and approve a plan based on whether it:

(1) lists each manufacturer and brand of covered products registered with each stewardship organization, including manufacturers who have contractually accepted responsibility as a manufacturer in accordance with paragraph (6) of the definition of "manufacturer" in this Act;

(2) provides for free, convenient, and accessible statewide access for the collection of covered products from covered entities in the State;

(3) describes how retailers will be made aware of their obligation to sell only covered products from manufacturers participating in an approved stewardship plan;

(4) describes the education and communications strategy being implemented to promote participation in the stewardship program by covered entities and provides the information necessary for effective participation in the stewardship program, including the development of a single website and providing information to retailers under subsection (c) of Section 30 of this Act;

(5) describes the information to be provided on a single website, including, but not limited to, information about collection site locations, including a map showing the locations of all collection sites, hours of operation, contact information, and a list of acceptable covered products and nonacceptable items;

(6) describes efforts by manufacturers to reduce the environmental health and safety impacts of covered products;

(7) provides for the environmentally sound management of covered products;

(8) provides the name, location and permit status of final disposition facilities where covered products will be transported and the covered products managed by each final disposition facility;

(9) demonstrates compliance with the collection convenience standard requirements in Section 50;

(10) describes how data regarding the covered products collected in a program year will be reported, including independent data for each collection site regarding the amount of covered products collected and the number of covered entities that participated in the stewardship program;

(11) describes how a stewardship organization will incorporate existing permanent collection sites and one-day collection sites into the stewardship program;

(12) describes the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship program's costs among the manufacturers that are part of each stewardship organization. For manufacturers that choose to meet the requirements of this Act individually, without joining a stewardship organization, the plan must describe the proposed method to establish and administer a means for fully funding the stewardship program; and

(13) describes efforts that will be made to ensure that areas designated as environmental justice communities will have convenient access to collection sites.

(b) A stewardship organization must submit a new stewardship plan to the Agency for approval no less than every 5 years.

(c) A stewardship organization must provide plan amendments to the Agency for approval when proposing changes to the approved stewardship plan or when requested by the Agency due to deficiencies in the stewardship program being implemented under the stewardship plan in effect.

Section 45. Stewardship plan approval.

(a) The Agency shall approve the proposed stewardship plan if each manufacturer participating in the stewardship plan has registered under Section 25 and the stewardship plan demonstrates compliance with the requirements of Section 40.

(b) Within 90 days after receiving the stewardship plan, the Agency shall either approve, reject, or approve with modification the stewardship plan in writing for each stewardship organization. If the Agency rejects the stewardship plan, it shall provide the reason for the rejection in the written notification to the stewardship organization.

(c) No later than 60 days after receipt of a notice of rejection under subsection (b) of this Section, a revised stewardship plan must be submitted to the Agency. Within 30 days after receipt of the revised stewardship plan, the Agency shall either approve or reject the revised stewardship plan in writing for the stewardship organization.

(d) After approval, manufacturers must, either individually or collectively as a stewardship organization, initiate operation of the stewardship program outlined in the stewardship plan no later than January 1, 2027.

Section 50. Collection convenience standard requirements.

(a) A stewardship organization implementing a stewardship plan must provide for the collection of all covered products to all covered entities on a free, continuous, and statewide basis. If there is more than one stewardship organization, those stewardship organizations may coordinate and meet the requirements of this Section jointly.

(b) For covered products, by the beginning of program year 2027, statewide collection requirements must include all permanent collection sites permitted to collect covered products as of January 1, 2027, all Agency sponsored one-day collection sites under which the Agency has an agreement to conduct one-day events, and all one-day collection sites that are contractually obligated by any person.

(c) For covered products, statewide collection requirements by the beginning of program year 2029 must include:

(1) at least one collection site that is a permanent collection site for covered products within a 15-mile radius for at least 60% of State residents; and

(2) at least one collection site that is a one-day collection site for covered products within a 25-mile radius for at least an additional 20% of State residents.

(d) For covered products, statewide collection requirements by the beginning of program year 2030 must include:

(1) at least one collection site that is a permanent collection site for covered products within a 15-mile radius for at least 70% of State residents; and

(2) at least one collection site that is a one-day collection site for covered products within a 25-mile radius for at least 25% of State residents.

(e) Collection convenience shall be for at least the number of hours allowed by the site's Agency permit for a permanent collection site. Collection convenience for a one-day collection site shall be at least once per year or as contractually obligated and shall be at least 6 hours in length per collection event.

Section 55. Reporting requirements.

(a) By June 1, 2028, and each June 1st thereafter, each stewardship organization must coordinate and submit a single annual report to the Agency covering the preceding program year and post the annual report on its website. The report must include the following:

(1) an independent financial assessment of the stewardship program implemented by each stewardship organization, including a breakdown of the program's expenses, including, but not limited to, collection cost, disposal cost, transportation cost, and administrative cost;

(2) a summary financial statement documenting the financing of each stewardship organization's program and an analysis of program costs and expenditures. A stewardship organization implementing similar programs in other states may submit a financial statement, including all other covered states, if the statement breaks out financial information pertinent to Illinois;

(3) a breakdown of the type and manifested weight of covered products collected by the stewardship program for each collection site and the number of covered entities who brought covered products to each collection site;

(4) the name and address of each collection site used to collect covered products, including an up-to-date map indicating the location of all collection sites;

(5) a breakdown of the final disposition of the covered products including a list of the facilities used in the disposition of the covered products that includes the name and geographic location of the facilities and any violations of environmental laws and regulations over the previous 3 years at each facility;

(6) an assessment of whether the collection convenience standard requirements in Section 50 have been met or not;

(7) a description of the education and communication efforts, including examples of marketing materials and efforts used, including an assessment of the success of the educational efforts; and

(8) any recommendations for changes to the stewardship program.

(b) Proprietary information submitted to the Agency under this Act is exempted from disclosure as provided under paragraphs (g) and (mm) of subsection (1) of Section 7 of the Freedom of Information Act.

(c) Within 30 days after Agency approval of the annual report, the annual report shall be posted to the program website required under paragraph (5) of subsection (a) of Section 40.

Section 60. Fee and Agency role.

(a) By July 1, 2026, and by July 1 of each year thereafter, a stewardship organization shall pay to the Agency an annual fee of $200,000. If there is more than one stewardship organization, the stewardship organizations shall equitably split the annual fee of $200,000. The fee shall cover the Agency's full costs of implementing, administering, and enforcing this Act. The annual fee shall be deposited into the Solid Waste Management Fund to be used for costs associated with the administration of this Act.

(b) The responsibilities of the Agency in implementing, administering and enforcing this Act include:

(1) reviewing submitted stewardship plans and plan amendments and making determinations as to whether to approve the plan or plan amendment;

(2) reviewing annual reports submitted under Section 55 within 90 days after submission to ensure compliance with that Section;

(3) maintaining a link on its website to the single website required under paragraph (5) of subsection (a) of Section 40;

(4) maintaining the list of registered manufacturers on its website; and

(5) providing technical assistance to producers, retailers and collection sites related to the requirements of this Act.

Section 65. Antitrust immunity. The activities authorized by this Act require collaboration among the covered manufacturers and the collection sites. These activities will enable safe and secure collection, transportation, and disposal of covered products in Illinois and are, therefore, in the best interest of the public. The benefits of collaboration, together with active State supervision, outweigh potential adverse impacts. Therefore, the General Assembly intends to exempt State antitrust laws and provide immunity through the state action doctrine from federal antitrust laws, activities that are undertaken under this Act that might otherwise be constrained by such laws. The General Assembly does not intend to authorize any person or entity to engage in activities not provided for by this Act, and the General Assembly neither exempts nor provides immunity for such activities.

Section 70. Rulemaking authority. The Agency may adopt rules to implement this Act.

Section 75. Penalties and civil actions.

(a) Any person who violates any provision of this Act is liable for a civil penalty of $7,000 per violation, except that failure to pay a fee under this Act shall cause the person who fails to pay the fee to be liable for a civil penalty that is double the applicable fee.

(b) The penalties provided 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 penalties collected under this Section in an action in which the Attorney General has prevailed shall be deposited into the Environmental Protection Trust Fund, to be used in accordance with the provisions of the Environmental Protection Trust Fund Act.

(c) The Attorney General or the State's Attorney of a county in which a violation occurs may institute a civil action for an injunction, prohibitory or mandatory, to restrain violations of this Act or to require such actions as may be necessary to address violations of this Act.

(d) The penalties and injunctions provided in this Act are in addition to any penalties, injunctions, or other relief provided under any other State law. Nothing in this Act bars a cause of action by the State for any other penalty, injunction, or other relief provided by any other law.

(e) Any person who makes a false, fictitious, or fraudulent material statement, orally or in writing, to the Agency, related to or required by this Act or any rule adopted under this Act commits a Class 4 felony, and each such statement or writing shall be considered a separate Class 4 felony. A person who, after being convicted under this subsection, violates this subsection a second or subsequent time commits a Class 3 felony.

Section 80. Collection of covered products using premium collection service. Nothing in this Act shall prevent or prohibit a person from offering or performing a fee-based, household collection of covered products provided such person's premium collection services must be performed in compliance with all applicable federal, State, and local laws and requirements, including, but not limited to, all applicable U.S. Department of Transportation laws and regulations, and all applicable provisions of the Environmental Protection Act. Such person collecting covered products may make available to the stewardship organization some or all of the covered products collected using premium collection service at no expense. After consolidation of some or all of the covered products at the person's facilities, the transport to and processing of such covered products by the stewardship organization's processors of some or all of the covered products shall be at the stewardship organization's expense. The stewardship organization may count the households serviced by premium collection service toward the collection and convenience standard requirements in Section 50 of this Act.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

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