Illinois General Assembly - Full Text of HB4258
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Full Text of HB4258  102nd General Assembly

HB4258 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4258

 

Introduced 1/5/2022, by Rep. Dagmara Avelar

 

SYNOPSIS AS INTRODUCED:
 
415 ILCS 5/22.64 new

    Amends the Environmental Protection Act. Requires the Environmental Protection Agency to select and enter into a contract with a packaging stewardship organization to operate a packaging stewardship program meeting specified requirements. Provides that, beginning one calendar year following the effective date of the contract entered into by the Agency and the stewardship organization, a producer may not sell, offer for sale, or distribute for sale in or into the State a product contained, protected, delivered, presented, or distributed in or using packaging material for which the producer has not complied with all applicable requirements of the provisions. Provides that the stewardship organization shall annually submit to the Agency and make available on its publicly accessible website a report with specified requirements. Provides that the stewardship organization shall annually disburse to participating municipalities from a packaging stewardship fund reimbursement payments for the median per-ton cost of managing packaging material that is readily recyclable and reimbursement payments for the median per-ton cost of managing packaging material that is not readily recyclable. Requires the Agency to administer and enforce the provisions and to adopt rules as necessary to implement, administer, and enforce the provisions. Contains other provisions.


LRB102 21396 CPF 30512 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4258LRB102 21396 CPF 30512 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Environmental Protection Act is amended by
5adding Section 22.64 as follows:
 
6    (415 ILCS 5/22.64 new)
7    Sec. 22.64. Packaging stewardship program.
8    (a) In this Section:
9    "Alternative collection program" means a program for the
10management of packaging material that is operated by an
11individual producer or group of producers and that has been
12approved by the Agency in accordance with subsection (j).
13    "Brand" means a name, symbol, word, or mark that
14identifies a product, rather than its components, and
15attributes the product to the owner of the brand.
16    "Collection" means the gathering of waste, including the
17preliminary sorting and storage of waste for the purposes of
18transport to a recycling establishment.
19    "European article number" or "EAN" means a 13-digit
20barcode used for product identification purposes, also
21referred to as an international article number.
22    "Franchisee" means a person who is granted a franchise by
23a franchisor authorizing the use of the franchisor's trade

 

 

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1name, service mark, or related characteristic and the sharing
2of the franchisor's proprietary knowledge or processes
3pursuant to an oral or written arrangement for a definite or
4indefinite period.
5    "Franchisor" means a person who grants to a franchisee a
6franchise authorizing the use of the person's trade name,
7service mark, or related characteristic and the sharing of the
8person's proprietary knowledge or processes pursuant to an
9oral or written arrangement for a definite or indefinite
10period.
11    "Low-volume producer" means a producer that sold, offered
12for sale, or distributed for sale in or into the State during
13the prior calendar year products contained, protected,
14delivered, presented, or distributed in or using more than one
15ton but less than 15 tons of packaging material in total.
16    "Packaging material" means a discrete type of material, or
17a category of material that includes multiple discrete types
18of material with similar management requirements and similar
19commodity values, used for the containment, protection,
20delivery, presentation, or distribution of a product,
21including a product sold over the Internet, at the time that
22the product leaves a point of sale with or is received by the
23consumer of the product. "Packaging material" does not include
24a discrete type of material, or a category of material that
25includes multiple discrete types of material, that is:
26        (1) intended to be used for the long-term storage or

 

 

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1    protection of a durable product and that can be expected
2    to be usable for that purpose for a period of at least 5
3    years;
4        (2) a beverage container;
5        (3) a container for architectural paint, as long as a
6    paint stewardship program is in operation, has been
7    approved by the Agency, and the stewardship organization
8    operating that program:
9            (A) has demonstrated to the Agency's satisfaction
10        that it recycles at least 90% of the containers of
11        architectural paint collected under the program; or
12            (B) subject to the approval of the Agency, if
13        unable to satisfy the requirements of subparagraph
14        (A), has demonstrated to the Agency's satisfaction
15        that it recycles at least 80% of the containers of
16        architectural paint collected under the program; or
17        (4) excluded from the definition of "packaging
18    material" by the Agency by rule.
19    "Packaging stewardship fund" or "fund" means a privately
20held account established and managed by the stewardship
21organization under subsection (o).
22    "Packaging stewardship organization" or "stewardship
23organization" means the entity contracted by the Agency under
24subsection (c) to operate the packaging stewardship program.
25    "Packaging stewardship program" or "program" means the
26program implemented under this Section by the stewardship

 

 

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1organization to assess and collect payments from producers
2based on the amount, whether by weight or volume, of packaging
3material sold, offered for sale, or distributed for sale in or
4into the State by each producer and to reimburse participating
5municipalities for certain municipal recycling and waste
6management costs.
7    "Participating unit of local government" means a unit of
8local government that has complied with the requirements of
9subsection (l) and is eligible for reimbursement of certain
10costs in accordance with subsection (m).
11    "Post-consumer recycled material" means new material
12produced using material resulting from the recovery,
13separation, collection, and reprocessing of material that
14would otherwise be disposed of or processed as waste and that
15was originally sold for consumption. "Post-consumer recycled
16material" does not include post-industrial material or
17pre-consumer material.
18    "Producer" means a person who:
19        (1) has legal ownership of the brand of a product
20    sold, offered for sale, or distributed for sale in or into
21    the State contained, protected, delivered, presented, or
22    distributed in or using packaging material; or
23        (2) is the sole entity that imports into the State for
24    sale, offer for sale, or distribution for sale in or into
25    the State a product contained, protected, delivered,
26    presented, or distributed in or using packaging material

 

 

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1    that is branded by a person that meets the requirements of
2    paragraph (1) and has no physical presence in the United
3    States.
4    "Producer" includes a low-volume producer and a franchisor
5of a franchise located in the State, but does not include the
6franchisee operating that franchise. "Producer" does not
7include a nonprofit organization exempt from taxation under
8the United States Internal Revenue Code of 1986, Section
9501(c)(3).
10    "Proprietary information" means information that is a
11trade secret or production, commercial, or financial
12information the disclosure of which would impair the
13competitive position of the submittor and would make available
14information not otherwise publicly available.
15    "Readily recyclable" means, with respect to a type of
16packaging material, that the type of packaging material meets
17the criteria and standards for recyclability as determined by
18the Agency by rule under subsection (p).
19    "Similar municipalities" means 2 or more municipalities
20that, as determined by the Agency by rule under subsection
21(p), have similar population sizes and similar geographic
22locations and share other Agency specified criteria.
23    "Toxicity" means, with respect to packaging material, the
24presence in packaging material or the use in the
25manufacturing, recycling, or disposal of packaging material of
26intentionally introduced metals or chemicals regulated by the

 

 

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1Agency, food contact chemicals of high concern or priority
2food contact chemicals regulated by the Agency, or chemicals
3of concern, chemicals of high concern, or priority chemicals
4identified by the Agency.
5    "Universal product code" or "UPC" means a standard for
6encoding a set of lines and spaces that can be scanned and
7interpreted into numbers for product identification purposes.
8"Universal product code" includes any industry-accepted
9barcode used for product identification purposes in a manner
10similar to a UPC, including, but not limited to, an EAN.
11    (b) Notwithstanding any provision of this Section to the
12contrary, a producer is exempt from the requirements and
13prohibitions of this Section in any calendar year in which:
14        (1) the producer realized less than $2,000,000 in
15    total gross revenue during the prior calendar year, except
16    that, for the period beginning one calendar year following
17    the effective date of the contract entered into by the
18    Agency and the stewardship organization under subsection
19    (c) and ending 3 years after that effective date, a
20    producer that realized less than $5,000,000 in total gross
21    revenue during the prior calendar year is exempt from the
22    requirements and prohibitions of this Section;
23        (2) the producer sold, offered for sale, or
24    distributed for sale in or into the State during the prior
25    calendar year products contained, protected, delivered,
26    presented, or distributed in or using less than one ton of

 

 

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1    packaging material in total;
2        (3) the producer realized more than 50% of its total
3    gross revenue in the prior calendar year from the sale of
4    goods it acquired through insurance salvages, closeouts,
5    bankruptcies, and liquidations; or
6        (4) the producer sold, offered for sale, or
7    distributed for sale in or into the State during the prior
8    calendar year to retailers or direct to consumers products
9    that were perishable food and that were contained,
10    protected, delivered, presented, or distributed in or
11    using less than 15 tons of packaging material in total.
12    In this subsection, "perishable food" means any food that
13may spoil or otherwise become unfit for human consumption
14because of its nature, type, or physical condition, including,
15but not limited to, fresh and processed meats, poultry,
16seafood, dairy products, bakery products, eggs in the shell,
17and fresh fruits and vegetables. "Perishable food" does not
18include any such food that is sold, offered for sale, or
19distributed for sale frozen except for frozen wild
20blueberries.
21    A producer claiming an exemption under this subsection
22shall provide to the Agency sufficient information to
23demonstrate that the producer meets the requirements for an
24exemption under this subsection within 30 days after receiving
25a request from the Agency to provide such information.
26    (c) Consistent with the requirements of this Section, the

 

 

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1Agency shall select and enter into a contract with a packaging
2stewardship organization to operate the packaging stewardship
3program under this Section.
4    (d) Consistent with applicable competitive bidding
5requirements under State purchasing laws and following the
6initial adoption of rules by the Agency under subsection (p)
7to implement this Section, the Agency shall issue a request
8for proposals for the operation of the packaging stewardship
9program by a packaging stewardship organization. The proposals
10must be required to cover a 10-year operation of the packaging
11stewardship program by the successful bidder and must be
12required to include, at a minimum, the following:
13        (1) A description of how the bidder will administer
14    the stewardship organization, including:
15            (A) the mechanism or process, to be developed with
16        input from producers, by which a producer may request
17        and receive assistance from the stewardship
18        organization in the reporting of required information
19        and regarding methods by which the packaging material
20        used by a producer may be modified so as to reduce the
21        producer's payment obligations under subsection (h);
22        and
23            (B) the mechanism or process, to be developed with
24        input from municipalities, by which a participating
25        unit of local government may request and receive
26        assistance from the stewardship organization in the

 

 

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1        reporting of required information and regarding
2        methods by which a unit of local government's
3        recycling program may be modified so as to increase
4        access to and participation in the program.
5        (2) A description of how the bidder intends to solicit
6    and consider input from interested persons, including, but
7    not limited to, producers, municipalities, environmental
8    organizations, and waste management and recycling
9    establishments, regarding the bidder's operation of the
10    packaging stewardship program, if selected.
11        (3) A description of how the bidder intends to
12    establish and manage the packaging stewardship fund
13    consistent with subsection (o), including, but not limited
14    to:
15            (A) the staffing the bidder intends to use for
16        management of the fund;
17            (B) a plan to ensure equity of access to the fund
18        for participating municipalities;
19            (C) a plan for providing technical support to
20        producers and municipalities regarding program
21        requirements; and
22            (D) a plan for administering payments to and
23        reimbursements from the fund and the financial
24        mechanisms, including investment types, if any, the
25        bidder intends to use in managing the fund.
26        (4) A proposed financial assurance plan that ensures

 

 

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1    all funds held in the packaging stewardship fund are
2    immediately and exclusively forfeited and transferred to
3    or otherwise made immediately available to the Agency to
4    support waste diversion, reuse, or recycling programs when
5    the stewardship organization's contract with the Agency is
6    terminated by the Agency or expires, unless the
7    stewardship organization enters into a new contract with
8    the Agency prior to the expiration of the stewardship
9    organization's existing contract.
10        (5) A proposed budget outlining the anticipated costs
11    of operating the packaging stewardship program, including
12    identification of any start-up costs that will not be
13    ongoing and a description of the method by which the
14    bidder intends to determine and collect producer payments
15    during the initial start-up period of program operation to
16    fund the program's operational costs during that initial
17    start-up period and to reimburse or require additional
18    payments by those producers subsequent to that initial
19    start-up period based on producer reporting of the actual
20    amount of packaging material sold, offered for sale, or
21    distributed for sale in or into the State by each producer
22    during that initial start-up period. The proposed budget
23    under this paragraph may overestimate the cost of
24    operating the program during its initial start-up period
25    of operation but must describe the method and basis for
26    any overestimate.

 

 

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1        (6) A certification that the bidder will not share,
2    except with the Agency, information provided to the bidder
3    by a producer that is proprietary information and that is
4    identified by the producer as proprietary information. The
5    certification must include a description of the methods by
6    which the bidder intends to ensure the confidentiality of
7    such information.
8        (7) A description of how the bidder will conduct a
9    statewide recycling needs assessment that, at a minimum,
10    includes an evaluation of:
11            (A) current funding needs affecting recycling
12        access and availability in the State;
13            (B) the capacity, costs, and needs associated with
14        the collection and transportation of recyclable
15        material in the State;
16            (C) the processing capacity, market conditions,
17        and opportunities in the State and regionally for
18        recyclable material; and
19            (D) consumer education needs in the State with
20        respect to recycling and reducing contamination in
21        collected recyclable material.
22        (8) Any additional information required by the Agency.
23    (e) In accordance with applicable requirements of State
24purchasing law, the Agency shall enter into a contract with a
25bidder that has submitted a proposal in accordance with the
26requirements of subsection (d), the term of which must cover

 

 

HB4258- 12 -LRB102 21396 CPF 30512 b

110 years of operation of the packaging stewardship program by
2the stewardship organization. The contract must, at a minimum,
3include provisions to ensure that the stewardship organization
4will conduct the statewide recycling needs assessment
5described in paragraph (7) of subsection (d) and report the
6results of that assessment to the Agency within a reasonable
7time frame and operate the program in accordance with all
8applicable statutory requirements and the rules adopted by the
9Agency under this Section.
10    If, at the close of the competitive bidding process under
11subsection (d), the Agency determines that no bidder has
12submitted, in accordance with this subsection, a proposal that
13meets the requirements of subsection (d), the Agency may
14reopen a new competitive bidding process under this
15subsection.
16    (f) This subsection governs the sale or distribution in
17the State of products with packaging not in compliance with
18the requirements of this Section and sets forth requirements
19for the collection and publication of compliance information.
20        (1) Except as provided in paragraph (4), beginning one
21    calendar year following the effective date of the contract
22    entered into by the Agency and the stewardship
23    organization under subsection (c), a producer may not
24    sell, offer for sale, or distribute for sale in or into the
25    State a product contained, protected, delivered,
26    presented, or distributed in or using packaging material

 

 

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1    for which the producer has not complied with all
2    applicable requirements of this Section.
3        (2) The stewardship organization shall provide to the
4    Agency a list of producers that are participating in the
5    program and a list of the UPCs of products for which the
6    producer has complied with the program's requirements and,
7    if known to the stewardship organization, a list of
8    producers that are not participating in the program and
9    are not compliant with the program's requirements. The
10    stewardship organization shall provide to the Agency
11    regularly updated producer compliance information
12    described in this paragraph.
13        (3) Based on information provided to the Agency under
14    paragraph (1) and any other information considered by the
15    Agency, the Agency shall make available on its publicly
16    accessible website a regularly updated list of UPCs of
17    products for which the Agency has determined the producer
18    has complied with all applicable requirements of this
19    Section and a list of producers and, where applicable,
20    specific products and the UPCs of those products for which
21    the Agency has determined the producer has not complied
22    with all applicable requirements of this Section.
23        (4) Notwithstanding a producer's failure to comply
24    with all applicable requirements of this Section for a
25    type or types of packaging material used to contain,
26    protect, deliver, present, or distribute a product, the

 

 

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1    Agency may authorize the sale or distribution for sale in
2    or into the State of another product or products of the
3    producer that are contained, protected, delivered,
4    presented, or distributed in or using a different type or
5    types of packaging material for which that producer has
6    complied with all applicable requirements of this Section.
7    If the Agency provides such an authorization, the Agency
8    shall ensure that such information is included in the
9    information made available under paragraph (3).
10    (g) In accordance with rules adopted by the Agency, the
11stewardship organization shall annually submit to the Agency
12and make available on its publicly accessible website a report
13that includes, at a minimum, the following information:
14        (1) Contact information for the stewardship
15    organization.
16        (2) A list of participating producers and the brands
17    and UPCs of products associated with those producers.
18        (3) The total amount, whether by weight or volume, of
19    each type of packaging material sold, offered for sale, or
20    distributed for sale in or into the State by each
21    participating producer as reported in accordance with
22    subsection (i).
23        (4) As applicable, the total amount, whether by weight
24    or volume, of each type of packaging material collected
25    and managed by each participating producer through
26    alternative collection programs approved by the Agency

 

 

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1    under subsection (j).
2        (5) A complete accounting of payments made to and by
3    the stewardship organization during the prior calendar
4    year, including information on how the stewardship
5    organization determined the amount of such payments in
6    accordance with subsections (h) and (m) and the rules
7    adopted under subsection (p).
8        (6) A list of producers that are not participating in
9    the program that are required to participate in the
10    program and any product-specific noncompliance, if known
11    by the stewardship organization.
12        (7) A description of education and infrastructure
13    investments made by the stewardship organization in prior
14    calendar years and an evaluation of how those investments
15    were designed to increase access to recycling in the State
16    and to encourage the reuse of packaging material.
17        (8) A description of the results of the representative
18    audits required under subsection (p).
19        (9) An assessment of the progress made toward the
20    achievement of any program goals required by the Agency by
21    rule under subsection (p).
22        (10) An assessment of whether the payment schedule for
23    producer payments adopted by the Agency by rule under
24    subsection (p) has been successful in incentivizing
25    improvements to the design of packaging material as
26    encouraged through the allowance of payment adjustments in

 

 

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1    accordance with subsection (p).
2        (11) Any proposals for changes to the packaging
3    stewardship program or investments in education and
4    infrastructure designed to reduce the amount of packaging
5    material used, increase access to recycling, increase the
6    recycling of or recyclability of packaging material,
7    reduce program costs, or otherwise increase program
8    efficiency, which may include an analysis of best
9    practices for municipal recycling programs.
10        (12) The results of a third-party financial audit of
11    the stewardship organization.
12        (13) An estimate of the annual greenhouse gas
13    emissions effects in the State associated with the
14    operation of the stewardship program. In this paragraph,
15    "greenhouse gas" means any chemical or physical substance
16    that is emitted into the air and that the Agency
17    determines by rule may reasonably be anticipated to cause
18    or contribute to climate change. "Greenhouse gas"
19    includes, but is not limited to, carbon dioxide, methane,
20    nitrous oxide, hydrofluorocarbons, perfluorocarbons, and
21    sulfur hexafluoride.
22        (14) Any additional information required by the
23    Agency.
24    (h) In accordance with the provisions of this subsection
25and rules adopted by the Agency, no later than 180 days after
26the effective date of the contract entered into by the Agency

 

 

HB4258- 17 -LRB102 21396 CPF 30512 b

1and the stewardship organization under subsection (c), and
2annually thereafter, a producer shall make payments to the
3stewardship organization to be deposited into the packaging
4stewardship fund under subsection (o) based on the net amount,
5whether by weight or volume, of each type of packaging
6material sold, offered for sale, or distributed for sale in or
7into the State by the producer and not managed by the producer
8under an approved alternative collection program. The Agency
9shall adopt rules setting forth the manner in which such
10payments must be calculated for packaging material that is
11readily recyclable and packaging material that is not readily
12recyclable, which must be designed to incentivize the use by
13producers of packaging material that is readily recyclable and
14disincentivize the use by producers of packaging material that
15is not readily recyclable.
16    (i) In accordance with rules adopted by the Agency, a
17producer shall annually report to the stewardship organization
18the total amount, whether by weight or volume, of each type of
19packaging material sold, offered for sale, or distributed for
20sale in or into the State by the producer in the prior calendar
21year.
22    (j) In accordance with the requirements of this subsection
23and rules adopted by the Agency, a producer or group of
24producers may develop and operate an alternative collection
25program to collect and manage a type or types of packaging
26material sold, offered for sale, or distributed for sale in or

 

 

HB4258- 18 -LRB102 21396 CPF 30512 b

1into the State by the producer or producers. A producer that
2manages a type of packaging material under an approved
3alternative collection program through reuse, recycling, and,
4where approved by the Agency, management of that packaging
5material through incineration may wholly or partially offset
6the producer's payment obligations under the packaging
7stewardship program with respect to that same type of
8packaging material only.
9    Beginning on the effective date of the contract entered
10into by the Agency and the stewardship organization under
11subsection (c), a producer or group of producers seeking to
12implement an alternative collection program shall submit a
13proposal for the establishment of that program to the Agency
14for approval. The Agency shall approve or deny the proposal
15within 120 days after receipt and shall provide an opportunity
16for public review and comment on the proposal prior to its
17approval or denial. The Agency may approve an alternative
18collection program for a term of 5 years and, at the expiration
19of such term, the producer or group of producers operating the
20program may submit an updated proposal to the Agency for
21approval.
22    In determining whether to approve a proposed alternative
23collection program, the Agency shall consider the following:
24        (1) Whether the alternative collection program will
25    provide year-round, convenient, free, statewide collection
26    opportunities for the types of packaging material to be

 

 

HB4258- 19 -LRB102 21396 CPF 30512 b

1    collected under that program.
2        (2) To what extent the alternative collection program
3    intends to manage those types of packaging material to be
4    collected under the program through reuse for an original
5    purpose, through recycling or through disposal at an
6    incineration facility. The Agency may not approve an
7    alternative collection program that proposes management of
8    a packaging material type through disposal at an
9    incineration facility unless that packaging material is
10    not readily recyclable and the program proposes a process
11    to begin reuse or recycling of that type of packaging
12    material within a period of 3 years or less.
13        (3) Whether the education and outreach strategies
14    proposed for the alternative collection program can be
15    expected to significantly increase consumer awareness of
16    the program throughout the State.
17        (4) How the alternative collection program intends to
18    accurately measure the amount, whether by weight or
19    volume, of each packaging material type collected, reused,
20    recycled, disposed of at an incineration facility, or
21    otherwise managed under the program.
22        (5) To what extent approval of the alternative
23    collection program may disproportionately impact any
24    community in the State.
25    A proposed modification to an approved alternative
26collection program must be submitted to the Agency for written

 

 

HB4258- 20 -LRB102 21396 CPF 30512 b

1approval. The Agency shall approve or deny a proposed
2modification based on application of the criteria described in
3paragraph (2). The Agency may waive payment of any fees
4associated with review and approval of a proposed modification
5to an approved alternative collection program if the review of
6the proposed modification does not require significant Agency
7staff time.
8    (k) In accordance with rules adopted by the Agency, a
9producer or producers managing an approved alternative
10collection program shall report annually to the stewardship
11organization and to the Agency the following information:
12        (1) The total tons of each type of packaging material
13    collected, reused, recycled, disposed of at an
14    incineration facility, or otherwise managed under the
15    alternative collection program in the prior calendar year,
16    including a breakdown of the total tons of each type of
17    material to be credited to each producer participating in
18    the alternative collection program.
19        (2) A list of the collection opportunities in the
20    State for the types of packaging material managed under
21    the alternative collection program that were made
22    available in the prior calendar year.
23        (3) A description of the education and outreach
24    strategies implemented by the alternative collection
25    program in the prior calendar year to increase consumer
26    awareness of the program throughout the State.

 

 

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1        (4) Any additional information required by the Agency.
2    If the Agency determines that an approved alternative
3collection program is not operating in a manner consistent
4with the proposal approved under subsection (j) or this
5subsection, the Agency shall provide written notice to the
6producer or producers operating the alternative collection
7program regarding the nature of the deficiency, the actions
8necessary to correct the deficiency, and the time by which
9such actions must be implemented. If the Agency determines
10that the producer or group of producers have failed to
11implement the actions described in the written notice within
12the required time frame, the Agency shall notify the producer
13or group of producers as well as the stewardship organization
14in writing that the producer or group of producers are
15ineligible to offset payment obligations under the packaging
16stewardship program based on packaging material managed under
17the alternative collection program.
18    (l) In accordance with the provisions of this Section and
19rules adopted by the Agency, a unit of local government may
20elect to, but is not required to, participate in the packaging
21stewardship program under this Section. To be eligible for
22reimbursement of costs under subsection (m) as a participating
23unit of local government, a unit of local government must, at a
24minimum:
25        (1) provide for the collection and recycling of
26    packaging material that is generated in the unit of local

 

 

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1    government and is readily recyclable; and
2        (2) annually report to the stewardship organization,
3    on a form provided and approved by the Agency, all
4    information necessary for the stewardship organization to
5    determine the unit of local government's incurred costs
6    associated with its collection, processing,
7    transportation, and recycling or other management of
8    recyclable material and of municipal solid waste.
9    2 or more municipalities, municipally-owned solid waste
10processing facilities, or quasi-municipal entities that manage
11waste materials on behalf of a unit of local government may
12elect to jointly report to the stewardship organization as
13required under paragraph (2) and to jointly receive
14reimbursement payments under subsection (m) from the
15stewardship organization.
16    (m) In accordance with the rules adopted by the Agency
17under subsection (p), the stewardship organization shall
18annually disburse to participating municipalities from the
19packaging stewardship fund established under subsection (o)
20reimbursement payments for the median per-ton cost of managing
21packaging material that is readily recyclable and
22reimbursement payments for the median per-ton cost of managing
23packaging material that is not readily recyclable. For the
24purposes of this subsection, the cost to a unit of local
25government of managing packaging material may include, but is
26not limited to, the costs associated with the collection,

 

 

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1transportation, and processing of packaging material, whether
2readily recyclable or not readily recyclable.
3    In accordance with rules adopted by the Agency, the
4stewardship organization shall determine the amount of
5payments to participating municipalities under this subsection
6based on the following information:
7        (1) Information provided by participating
8    municipalities to the stewardship organization in
9    accordance with subsection (l) regarding the costs
10    incurred by those municipalities in managing packaging
11    material that is readily recyclable and packaging material
12    that is not readily recyclable, which may include costs
13    associated with the management of packaging material
14    collected in public spaces and schools.
15        (2) Information provided to the Agency by recycling
16    establishments and made available by the Agency to the
17    stewardship organization, including the tons of recyclable
18    material received by each recycling establishment from
19    each unit of local government and the tons of processed
20    recyclable material sold by each recycling establishment.
21        (3) Information provided to the Agency by recycling
22    establishments not located in the State or by
23    participating municipalities and made available by the
24    Agency to the stewardship organization regarding the tons
25    of recyclable material brokered by those municipalities to
26    those recycling establishments and processed and sold by

 

 

HB4258- 24 -LRB102 21396 CPF 30512 b

1    those recycling establishments.
2        (4) Information obtained by the stewardship
3    organization through the audits of facilities that process
4    recyclable material generated in the State as required
5    under subsection (p).
6        (5) Any other information specified by the Agency by
7    rule.
8    In accordance with procedures and requirements adopted by
9the Agency by rule, the stewardship organization shall use the
10information described in paragraph (1) to determine the total
11tons of each packaging material type recycled by all
12municipalities at each recycling establishment and the
13percentage of those total tons attributable to each
14participating unit of local government. In the case of 2 or
15more municipalities that jointly send recyclable material to a
16recycling establishment, the stewardship organization shall
17assume that an equal amount of the jointly sent material is
18attributable to each resident of each unit of local government
19unless those municipalities by agreement identify an unequal
20per capita division of that jointly sent material for the
21purposes of this subsection.
22    (n) In accordance with the provisions of this subsection
23and rules adopted by the Agency, the stewardship organization
24shall make investments in education and infrastructure that
25support the recycling of packaging material in the State.
26    The stewardship organization shall submit any proposed

 

 

HB4258- 25 -LRB102 21396 CPF 30512 b

1investment in education or infrastructure to the Agency for
2approval prior to making any expenditure for such investment.
3The proposal must incorporate any input received by the
4stewardship organization regarding the proposed investment
5from producers, recycling establishments, and participating
6municipalities.
7    The Agency shall adopt rules setting forth the criteria
8for evaluation and approval or denial of investments in
9education and infrastructure proposed by the stewardship
10organization. The Agency shall approve or deny a proposed
11investment within 90 days after receipt of the proposal from
12the stewardship organization.
13    The Agency shall ensure that preference for funding is
14given to proposals that support the State's waste management
15hierarchy under subsection (b) of Section 2 of the Illinois
16Solid Waste Management Act, promote a circular economy for
17packaging material types for which producers were required to
18make payments under subsection (h), increase the recyclability
19of packaging material that is not readily recyclable, increase
20access to recycling infrastructure in the State, improve
21consumer education in the State regarding recycling and
22recyclability, and equitably support recycling and education
23efforts in participating municipalities, particularly in those
24participating municipalities that have received minimal or no
25prior funding under this paragraph.
26    (o) In accordance with the provisions of this subsection

 

 

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1and rules adopted by the Agency, the stewardship organization
2shall establish and manage a packaging stewardship fund. The
3stewardship organization shall deposit into the fund all
4payments received from producers in accordance with subsection
5(h) and shall expend those funds for the following purposes:
6        (1) To reimburse participating municipalities in
7    accordance with applicable provisions in subsections (l),
8    (m), and (p) and the applicable rules adopted by the
9    Agency under those subsections.
10        (2) To cover the operating costs of the stewardship
11    organization, which must be annually verified by a
12    third-party financial audit paid for by the stewardship
13    organization as required under paragraph (12) of
14    subsection (g).
15        (3) To pay to the Agency all applicable fees required
16    under subsection (p), including reimbursement of any costs
17    incurred by the Agency in adopting rules and in
18    administering and enforcing this Section prior to the
19    effective date of the contract entered into by the Agency
20    and the stewardship organization under subsection (c).
21        (4) To support investments in education and
22    infrastructure made in accordance with subsection (n).
23    (p) The Agency shall administer and enforce this Section
24and shall adopt rules as necessary to implement, administer,
25and enforce this Section. The Agency shall solicit input from
26interested parties in the development of any draft rules to

 

 

HB4258- 27 -LRB102 21396 CPF 30512 b

1implement this Section, solicit public comment on the draft
2rules for a period of at least 30 days, and hold a public
3hearing on the draft rules in the same manner as a public
4hearing must be conducted under the Illinois Administrative
5Procedure Act.
6    Rules adopted by the Agency under this Section must
7include, at a minimum, the following:
8        (1) A process for annually determining a schedule of
9    producer payments required under subsection (h), which
10    must include, but is not limited to, provisions regarding
11    the timing of producer payments and the timing of and
12    information required to be provided in the annual producer
13    report required under subsection (i). The process must
14    comply with the following:
15            (A) The payment schedule adopted under this
16        paragraph must provide for a flat fee option to be
17        assessed on a tiered basis such that a low-volume
18        producer is required to pay no more than $500 per ton
19        of packaging material and no more than $7,500 in total
20        annual fees to the stewardship organization under this
21        Section.
22            (B) For producers other than low-volume producers,
23        the payment schedule adopted under this paragraph must
24        be based on and cover the cost of managing the amount
25        of each type of packaging material sold, offered for
26        sale, or distributed for sale in or into the State by a

 

 

HB4258- 28 -LRB102 21396 CPF 30512 b

1        producer and not managed under an approved alternative
2        collection program, adjusted as applicable in
3        accordance with the adjustment criteria adopted under
4        subparagraph (C).
5            (C) For producers other than low-volume producers,
6        the payment schedule adopted under this paragraph must
7        delineate criteria to be used to adjust producer
8        payments in a manner that incentivizes the use of
9        recycled content in and increased recyclability of
10        packaging material, lower toxicity in packaging
11        material, a reduction of the amount of packaging
12        material used, a reduction of litter from packaging
13        material, increased reuse of packaging material, and
14        labeling of packaging material to reduce consumer
15        confusion and creates other incentives consistent with
16        generally accepted industry standards.
17            (D) The rule must require as part of the annual
18        producer reporting under subsection (i) the provision
19        by a producer of all information necessary for the
20        determination of the producer's payment obligation and
21        the determination of the producer's compliance with
22        respect to its products.
23            (E) For producers other than low-volume producers,
24        the rule must require the producer to provide a
25        description of the methods it used to determine the
26        amount reported for each type of packaging material

 

 

HB4258- 29 -LRB102 21396 CPF 30512 b

1        associated with its products, a description of the
2        characteristics of each type of packaging material
3        that are relevant to the adjustment criteria adopted
4        under subparagraph (C), and a list of the producer's
5        brands and the UPCs of the products associated with
6        each type of packaging material.
7            (F) For low-volume producers, the rule must
8        require the reporting of only the information
9        necessary for a calculation of the flat fee described
10        in subparagraph (A) and a determination of the
11        producer's compliance with the requirements of this
12        Section.
13            (G) The rule must authorize a producer that is
14        unable to fully satisfy the reporting requirements due
15        to a failure to obtain sufficient information
16        regarding the characteristics of the packaging
17        material of products of the producer that are sold,
18        offered for sale, or distributed for sale in or into
19        the State to alternatively report to the stewardship
20        organization an estimate of the total amount of that
21        packaging material based on unit quantities as long as
22        such alternative reporting includes a description of
23        the methods used by the producer to calculate the
24        estimate. When a producer alternatively reports an
25        estimate in accordance with this subparagraph, unless
26        otherwise determined by the Agency, the estimate must

 

 

HB4258- 30 -LRB102 21396 CPF 30512 b

1        be adjusted using the least favorable adjustment
2        criteria adopted under subparagraph (C).
3        (2) A process for determining on an annual basis those
4    types of packaging material that are readily recyclable,
5    which must involve consultation with the stewardship
6    organization and recycling establishments and must include
7    a transitional period between the time that a type of
8    packaging material is determined to be readily recyclable
9    or to not be readily recyclable and the time that such
10    determinations will be effective for the purposes of
11    calculating producer payments and municipal reimbursements
12    in accordance with this Section.
13        (3) A process for determining on an annual basis which
14    municipalities are similar municipalities, which must
15    involve consultation with participating municipalities.
16        (4) A process for determining municipal
17    reimbursements, including a description of the information
18    required from participating municipalities under
19    subsection (l), a method for calculating the
20    reimbursements required under subsection (m), and the
21    timing for participating unit of local government
22    reporting and payments to participating municipalities.
23    The method for calculating reimbursements must include the
24    median per-ton cost of managing packaging material that is
25    readily recyclable and the median per-ton cost of managing
26    packaging material that is not readily recyclable. The

 

 

HB4258- 31 -LRB102 21396 CPF 30512 b

1    method for calculating reimbursements must involve
2    consultation with participating municipalities and be
3    designed to incentivize municipal waste management
4    activities that represent higher priorities on the solid
5    waste management hierarchy.
6        (5) Requirements for the assessment of program
7    performance, including the setting of program goals used
8    to inform the producer payment schedule determined under
9    paragraph (1) and the investments in infrastructure and
10    education made under subsection (n), which must include,
11    but are not limited to: program goals supporting an
12    overall reduction by producers in the amount of packaging
13    material used, an increased reuse by producers of
14    packaging material, and an increased amount of
15    post-consumer recycled content in packaging material used
16    by producers; packaging material litter reduction goals;
17    recycling access and collection rate goals for
18    municipalities; and overall program and material-specific
19    recycling rate goals. To the maximum extent practicable,
20    material-specific recycling rate goals adopted under this
21    paragraph must reflect the following recycling standards:
22            (A) Sorted glass is considered recycled if it does
23        not require further processing before entering a glass
24        furnace or before use in the production of filtration
25        media, abrasive materials, glass fiber insulation, or
26        construction materials.

 

 

HB4258- 32 -LRB102 21396 CPF 30512 b

1            (B) Sorted metal is considered recycled if it does
2        not require further processing before entering a
3        smelter or furnace.
4            (C) Sorted paper is considered recycled if it does
5        not require further processing before entering a
6        pulping operation.
7            (D) Plastic separated by polymer is considered
8        recycled if it does not require further processing
9        before entering a pelletization, extrusion or molding
10        operation or, in the case of plastic flakes, does not
11        require further processing before use in a final
12        product.
13        (6) Requirements for the stewardship organization to
14    conduct representative audits of recyclable material
15    processed and sold by facilities that process recyclable
16    material generated in the State, of municipal solid waste
17    disposed of in the State, and of waste littered in the
18    State, which must include, but are not limited to, the
19    following:
20            (A) Provisions regarding the sampling techniques
21        to be used in those audits, which must include random
22        sampling.
23            (B) For audits of recyclable material, provisions
24        regarding:
25                (i) how those audits must be designed to
26            collect information regarding the extent to which

 

 

HB4258- 33 -LRB102 21396 CPF 30512 b

1            recyclable material processed and sold by those
2            facilities reflects the tons of each type of
3            packaging material collected in the State for
4            recycling and the tons of each type of packaging
5            material recycled in the State, as well as the
6            ultimate destination of and intended use for that
7            recycled material;
8                (ii) how those audits must be designed so that
9            information collected through the audit of one
10            facility will not be used to infer information
11            about a different facility that uses different
12            processing equipment, different sorting processes,
13            or different staffing levels to conduct
14            processing; and
15                (iii) the process by which a facility will be
16            allowed to request and receive an audit if it can
17            credibly demonstrate that an audit result being
18            applied to its material output is not
19            representative of its current operations.
20            (C) For audits of municipal solid waste,
21        provisions regarding how the audits will be designed
22        to collect information regarding the types and amount,
23        whether by weight or volume, of packaging material in
24        the waste stream and the percentage by weight and
25        volume of the waste stream that is composed of
26        packaging material.

 

 

HB4258- 34 -LRB102 21396 CPF 30512 b

1            (D) For audits of waste littered in the State,
2        provisions regarding how the audits will be designed
3        to collect information regarding the packaging
4        material type by amount, whether by weight or volume,
5        in sampled litter, identification of the producer or
6        producers of the packaging material in sampled litter,
7        if identifiable, and an evaluation based on those
8        audits regarding the areas of the State in which
9        litter accumulation is greatest.
10        (7) A schedule by which the stewardship organization
11    must annually report to the Agency under subsection (g)
12    and a schedule by which a producer or group of producers
13    operating an approved alternative collection program must
14    annually report to the stewardship organization and to the
15    Agency under subsection (j).
16        (8) A process by which the stewardship organization
17    will develop and submit for Agency review and a process by
18    which the Agency shall review and approve or deny a
19    proposed investment in education and infrastructure under
20    subsection (n). The process must set forth the manner in
21    which the stewardship organization is required to solicit
22    and incorporate input in the development of proposed
23    investments from producers, recycling establishments, and
24    participating municipalities.
25    (q) At the time that the stewardship organization submits
26its annual report to the Agency under subsection (g), the

 

 

HB4258- 35 -LRB102 21396 CPF 30512 b

1stewardship organization shall pay to the Agency a reasonable
2annual fee established by the Agency, not to exceed $300,000,
3to cover the Agency's costs for review of the stewardship
4organization's annual report and the Agency's costs in the
5prior fiscal year for its oversight, administration, and
6enforcement of the packaging stewardship program. In
7accordance with subsection (o) the annual fee required under
8this subsection may include reimbursement of any costs
9incurred by the Agency in adopting rules and in administering
10and enforcing this Section prior to the effective date of the
11contract entered into by the Agency and the stewardship
12organization under subsection (c).
13    (r) A producer or group of producers, when submitting a
14proposal to the Agency for the establishment of an alternative
15collection program or submitting a proposal to the Agency for
16modifications to an approved alternative collection program
17under subsection (j), shall pay to the Agency a reasonable fee
18established by the Agency to cover the Agency's actual costs
19for review of the proposal or proposed modifications. A
20producer or group of producers operating an approved
21alternative collection program under subsection (j) shall pay
22to the Agency a reasonable annual fee established by the
23Agency, not to exceed $10,000 per participating producer, to
24cover the Agency's costs for review of the producer's or
25group's annual report and the Agency's costs for the
26oversight, administration, and enforcement of the alternative

 

 

HB4258- 36 -LRB102 21396 CPF 30512 b

1collection program, which may be waived by the Agency if those
2activities by the Agency do not require significant Agency
3staff time.
4    (s) The Agency shall review packaging material associated
5with certain federally regulated products to determine whether
6that packaging material should be excluded from the definition
7of "packaging material" under subsection (a). In making such a
8determination, the Agency shall, at a minimum, consider
9whether the packaging material for such products is required
10by federal law to meet specific content or construction
11standards that may preclude or significantly diminish the
12producer's ability to increase the recyclability or reduce the
13volume of the packaging material. If the Agency determines
14that any such product or its associated packaging material
15should be excluded from the definition of "packaging
16material", the Agency shall adopt an exclusion by rule. At a
17minimum, the Agency shall conduct a review in accordance with
18this subsection of the packaging material associated with the
19following federally regulated products:
20        (1) Material that is used for the containment,
21    protection, delivery, presentation, or distribution of a
22    drug, as that term is defined under Section 321 of the
23    federal Food, Drug, and Cosmetic Act, as regulated by the
24    United States Food and Drug Administration under the
25    federal Food, Drug, and Cosmetic Act, or as collected
26    under a stewardship program in the State that has been

 

 

HB4258- 37 -LRB102 21396 CPF 30512 b

1    approved for operation by the Agency and has been
2    established to collect and dispose of such drugs,
3    including, but not limited to, prescription and
4    nonprescription drugs, drugs in medical devices and
5    combination products, branded and generic drugs, and drugs
6    for veterinary use.
7        (2) Material that is a medical device or a biological
8    product, or is used for the containment, protection,
9    delivery, presentation, or distribution of a medical
10    device or a biological product, as regulated by the United
11    States Food and Drug Administration under Parts 200, 300,
12    and 800 of Title 21 of the Code of Federal Regulations.
13        (3) Material that is used for the containment,
14    protection, delivery, presentation, or distribution of an
15    over-the-counter human drug product for which
16    tamper-evident packaging is required, as regulated by the
17    United States Food and Drug Administration under 21 CFR
18    211.132.
19        (4) Material that is used for the containment,
20    protection, delivery, presentation, or distribution of a
21    substance regulated by the United States Consumer Product
22    Safety Commission under the federal Poison Prevention
23    Packaging Act of 1970 for which special packaging is
24    required under Part 1700 of Title 16 of the Code of Federal
25    Regulations.
26    (t) Beginning February 15, 2025, and annually thereafter,

 

 

HB4258- 38 -LRB102 21396 CPF 30512 b

1the Agency shall submit a report to the Senate Committee on
2Environment and Conservation and the House Committee on Energy
3and Environment. The report must include, at a minimum:
4        (1) data on the amount and type of packaging material
5    associated with products sold, offered for sale, or
6    distributed for sale in or into the State;
7        (2) data regarding how that packaging material was
8    managed; and
9        (3) any recommendations for amendments to the programs
10    implemented under this Section, including, but not limited
11    to, the establishment of new program goals or the
12    imposition of a prohibition on the sale, offer for sale,
13    or distribution for sale in or into the State of products
14    associated with packaging material that the Agency has
15    determined is nonessential, is contaminating collected
16    recyclable material, is a common source of litter, or
17    exhibits toxicity, particularly if that toxicity is
18    demonstrated to have a disproportionate impact on any
19    community in the State.
20    Beginning February 15, 2028, and every 5 years thereafter,
21the report under this subsection must describe the results of
22a comprehensive review of the rules adopted by the Agency
23under this Section and must include recommendations by the
24Agency for any legislative changes to this Section determined
25necessary as a result of that review, including, but not
26limited to, changes to the flat fee that may be paid by a

 

 

HB4258- 39 -LRB102 21396 CPF 30512 b

1low-volume producer under subparagraph (A) of paragraph (1) of
2subsection (p), as well as a description of any changes to
3those rules that the Agency intends to propose in future
4rulemaking.
5    (u) A producer or stewardship organization, including a
6producer's or stewardship organization's officers, members,
7employees, and agents that organize a packaging stewardship
8program or an alternative collection program under this
9Section, is immune from liability for the producer's or
10stewardship organization's conduct under State laws relating
11to antitrust, restraint of trade, unfair trade practices, and
12other regulation of trade or commerce only to the extent
13necessary to plan and implement the producer's or stewardship
14organization's packaging stewardship program or alternative
15collection program consistent with the provisions of this
16Section.
17    (v) Proprietary information submitted to the Agency under
18the requirements of this Section or the rules adopted under
19this Section that is identified by the submittor as
20proprietary information is confidential and must be handled by
21the Agency in the same manner as other confidential
22information is handled.
23    (w) On or before December 31, 2023, the Agency shall adopt
24rules necessary for the implementation, administration, and
25enforcement of a stewardship program for packaging pursuant to
26this Section. Notwithstanding any provision of law to the

 

 

HB4258- 40 -LRB102 21396 CPF 30512 b

1contrary, the Agency may use funds within the Solid Waste
2Management Fund to support its activities required under this
3Section, except that, if the Agency uses funds within the
4Solid Waste Management Fund as authorized under this
5subsection, the Agency shall deposit back into that Fund the
6same amount of funds withdrawn once reimbursed.