Georgia General Assembly · Full text

HB 1237: Pollution Prevention and Producer Responsibility Act of 2026; enact

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House Bill 1237

By: Representatives Bell of the 75th, Tran of the 80th, Davis of the 87th, Carter of the 93rd, Bazemore of the 69th, and others

A BILL TO BE ENTITLED

AN ACT

To amend Chapter 8 of Title 12 of the Official Code of Georgia Annotated, relating to waste management, so as to enact the "Pollution Prevention and Producer Responsibility Act of 2026"; to provide for definitions; to provide for the creation of a Producer Responsibility Advisory Board; to provide for its composition, duties, terms of office, and operations; to provide for needs assessment studies; to provide for the contents and scope of such studies; to provide for the registration of producers of certain packaging and containers; to provide for producer responsibility programs; to provide for the scope and operation of such programs; to provide for the review and rejection or approval of such programs; to provide for certain fees; to provide for beverage container deposit return systems; to provide for the scope and operation of such systems; to provide for performance standards; to provide for reporting requirements; to provide for coordination plans; to provide for certain certifications; to provide for alternative collection programs; to provide for the development and publication and distribution of recyclable covered materials lists and approved recycling processes; to provide for the development and publication and distribution of compostable covered materials lists; to provide for a reuse financial assistance program; to provide for the reduction of toxins in covered materials; to provide for certain reports; to provide for enforcement; to provide for rule making; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Chapter 8 of Title 12 of the Official Code of Georgia Annotated, relating to waste management, is amended by revising Article 4, which was previously reserved, as follows: "ARTICLE 4

12-8-110.

This article shall be known and may be cited as the 'Pollution Prevention and Producer Responsibility Act of 2026.' ~~Reserved.~~

12-8-110.1.

As used in this article, the term:

(1) 'Advisory board' means the Producer Responsibility Advisory Board established under Code Section 12-8-110.2.

(2) 'Applicable refund value' means the value established under Code Section 12-8-110.6.

(3) 'Beverage' means a drinkable liquid intended for human oral consumption. Such term does not include:

(A) A drug regulated under the federal Food, Drug, and Cosmetic Act, 21 U.S.C. Section 301, et seq.;

(B) One hundred percent fluid milk;

(D) A meal replacement liquid.

(4) 'Beverage container' means a prepackaged container that:

(A) Is designed to hold a beverage;

(B) Is made of any material, including glass, plastic, metal, paper, or a combination thereof; and

(5) 'Beverage Producer Responsibility Organization' or 'beverage PRO' means a producer responsibility organization that is designated by a producer of beverage containers or group of producers of beverage containers to carry out the activities required of beverage producers by this article.

(6) 'Brand' means a name, symbol, word, or mark that identifies a product and attributes the product and its components, including packaging, to the brand owner.

(7) 'Brand owner' means a person or entity that owns or licenses a brand or that otherwise has rights to market a product under the brand, whether or not the brand's trademark is registered.

(8) 'Compostable' means that the covered materials meet the requirements of Code Section 12-8-110.13 and meet, and are labeled to reflect they meet, the criteria according to the Federal Trade Commission's Guides for Use of Environmental Marketing Claims at 16 C.F.R. Section 260.7 (Compostable Claims) and either:

(A) Meet, and are labeled to reflect that they meet:

(i) The American Society for Testing and Materials Standard Specification for Labeling of Plastics Designed to be Aerobically Composted in Municipal or Industrial Facilities (D6400) or its successor; and

(ii) The American Society for Testing and Materials Standard Specification for Labeling of End Items that Incorporate Plastics and Polymers as Coatings or Additives with Paper and Other Substrates Designed to be Aerobically Composted in Municipal or Industrial Facilities (D6868) or its successor; or

(B) Comprise only:

(i) Wood without any coatings or additives; or

(ii) Paper without any coatings or additives.

(9) 'Composting,' 'compost,' or 'composted' means the controlled aerobic, biological decomposition of biodegradable materials or organic waste to yield a humus-like product.

(10) 'Composting facility' means a facility that receives and composts materials into a humus-like product.

(11) 'Composting rate' means the amount of covered material by type that is composted, divided by the total amount of that covered material type sold, offered for sale, or distributed in the state.

(12) 'Convenience standards' means:

(A) That collection, recycling, and composting services for packaging or paper products provided under a producer responsibility plan are:

(i) At a minimum, as convenient as trash collection; and

(ii) Not a reduced level of convenience or service quality that was provided to the covered entity before the producer responsibility plan was implemented; or

(B) That beverage container redemption modalities meet or exceed the convenience standards described in paragraph (2) of subsection (e) of Code Section 12-8-110.6.

(13) 'Covered entity' means the following locations in this state:

(A) Single-family and multi-family residences; and

(B) Nonresidential locations identified in the needs assessment under Code Section 12-8-110.3, including public places, small businesses, food service locations, schools, hospitality locations, and state and local government buildings.

(14) 'Covered material' means packaging, paper products, and beverage containers sold, offered for sale, or distributed in the state. Such term does not include:

(A) Materials intended to be used for the long-term storage or protection of a durable product that is intended to transport, protect, or store the durable product on an ongoing basis, and that can be expected to be usable for that purpose for a period of at least five years; or

(B) Materials used to package pesticide products regulated by the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Section 136, et seq., that are in direct contact with the regulated product.

(15) 'Department' means the Department of Natural Resources.

(16) 'End of life services' means:

(A) Reuse, collection, recycling, and composting services for packaging and paper products; and

(B) Reuse, collection, recycling, and redemption services for beverage containers.

(17) 'End of life service costs' means the costs to conduct end of life services, including the cost of:

(A) Administration of relevant end of life service programs;

(B) Collecting and processing covered materials, removing and handling contaminants from covered materials at processing facilities, including, but not limited to, redemption facilities, composting facilities, and material recovery facilities, and preparing materials for responsible end markets;

(C) Transporting covered materials to processing facilities, including, but not limited to, redemption facilities, composting facilities, and material recovery facilities;

(D) Transporting contaminants for management or disposal;

(E) Capital improvements to processing facilities, including, but not limited to, redemption facilities, composting facilities, and material recovery facilities; and

(F) Education and outreach materials and activities.

(18) 'Environmental justice area' means a Tribal area or census tract that, based on the most recent data published by the United States Census Bureau, meets one or more of the following criteria:

(A) Forty percent or more of the area's total population is nonwhite;

(B) Thirty-five percent or more of households in the area have an income that is at or below 200 percent of the federal poverty level;

(D) The area is located in Indian Country, as defined in 18 U.S.C. Section 1151.

(19) 'Household' means occupants of a single detached dwelling unit or occupants of a single dwelling unit in a multifamily housing development located in this state.

(20) 'Living wage' means the minimum income necessary to allow a person working 40 hours per week to afford food, housing, transportation, childcare, taxes, and other basic needs as estimated by the state.

(21) 'Material recovery facility' means a facility that receives, separates, and sells or otherwise distributes postconsumer materials for recycling to responsible end markets.

(22) 'Multifamily housing development' means a structure that contains more than one separate residential dwelling units and that is used or occupied, or intended to be used or occupied, in whole or in part, as the home or residence of one or more persons.

(23) 'Packaging' means:

(A) A material used as:

(i) Primary packaging intended to provide an individual serving or unit of a product;

(ii) Secondary packaging intended to sell in bulk or display the product; or

(iii) Tertiary packaging intended to protect the product during transport.

(B) Packaging includes material that is:

(i) Used to protect, contain, transport, or serve an item;

(ii) Sold or supplied to consumers expressly for the purpose of protecting, containing, transporting, or serving items;

(iii) Attached to an item or its container for the purpose of marketing or communicating information about the item;

(iv) Supplied at the point of sale to facilitate the delivery of the item; or

(v) Supplied to or purchased by consumers expressly for the purpose of facilitating food or beverage consumption that is ordinarily discarded by consumers after a single-use or short-term use, whether or not it could be reused.

(24) 'Packaging Producer Responsibility Organization' or 'packaging PRO' means a PRO that is designated by a packaging or paper producer or group of packaging or paper producers to carry out the activities required of packaging and paper producers by this article. A single packaging PRO can include both packaging and paper producers.

(25) 'Paper product' means paper sold, offered for sale, or distributed, including, but not limited to, flyers, brochures, booklets, catalogues, magazines, copy paper, printing paper, unsolicited mail, and all other paper materials except for:

(A) Bound books;

(B) Conservation grade and archival grade paper;

(D) Paper products that, by any common and foreseeable use, could reasonably be anticipated to become unsafe or unsanitary to handle.

(26) 'Plastic' means a synthetic or semisynthetic material chemically synthesized by the polymerization of organic substances that can be shaped into various rigid and flexible forms and includes coatings and adhesives. Such term does not include natural rubber or naturally occurring polymers such as proteins or starches. Such term includes, and is not limited to:

(A) Polyethylene terephthalate (PET);

(B) High-density polyethylene (HDPE);

(D) Low-density polyethylene (LDPE);

(E) Polypropylene (PP);

(F) Polycarbonate (PC);

(G) Polystyrene (PS);

(H) Polylactic acid (PLA); and

(I) Aliphatic biopolyesters, such as polyhydroxyalkanoate (PHA) and polyhydroxybutyrate (PHB).

(27) 'Postconsumer material' means material generated by households or by commercial and institutional facilities in their role as end users of the product which has been used for its intended purpose and discarded. This includes returns of material from the distribution chain.

(28) 'Postconsumer recycled content' means the proportion of a covered material composed of postconsumer material, expressed as a percentage of the total weight of the covered material. Postconsumer recycled content shall be third-party certified when third-party certification is available for the material type and approved by the department under Code Section 12-8-110.10.

(29) 'Processing' means to sort, segregate, break or flake, and clean covered material to prepare it to meet the specification for sale to a responsible end market.

(30) 'Producer' means the following person or entity responsible for compliance with the requirements of this article for covered materials sold, offered for sale, or distributed in this state:

(A) For packaging:

(i) For items sold, offered for sale, or distributed in or with packaging at a physical retail location in this state:

(I) If the item is sold, offered for sale, or distributed in or with packaging under the manufacturer's own brand or is sold, offered for sale, or distributed in or with packaging that lack identification of a brand, the producer is the person or entity that manufactures the packaged item;

(II) If there is no person or entity to which subdivision (I) of this division applies, the producer is the person or entity that is licensed to sell, offer for sale, or distribute to consumers in this state an item in or with packaging under the brand or trademark used in a commercial enterprise, sold, offered for sale, or distributed in or into this state, whether or not the trademark is registered in this state;

(III) If there is no person or entity to which subdivision (I) or (II) of this division applies, the producer is the brand owner of the item;

(IV) If there is no person or entity described in subdivisions (I) through (III) of this division located in the United States, the producer is the person or entity that is the importer of record for the item into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in this state; or

(V) If there is no person or entity described in subdivisions (I) through (IV) of this division, the producer is the person that first distributes the item in or into this state;

(ii) For items sold, offered for sale, or distributed in or with packaging in this state via e-commerce, remote sale, or distribution:

(I) For packaging used to directly protect or to indirectly contain the item, the producer is the person or entity identified in division (i) of this subparagraph; and

(II) For packaging used to ship the item or a group of items to a consumer, the producer is the person or entity that packages and ships the product or group of products to the consumer; and

(B) For beverage containers:

(i) The producer is the brand owner responsible for the brand visible on the beverage container that is introduced, either physically or via e-commerce or remote sales, in this state;

(ii) If there is no person or entity described in division (i) of this subparagraph located in the United States, the producer is the person or entity who is the importer of record for the beverage container into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in this state; or

(iii) If there is no person or entity described in division (i) or (ii) of this subparagraph, the producer is the person that first distributes the beverage container in or into this state;

(C) For all other packaging or beverage containers, the producer of the packaging is the person or entity that first distributes the item in this state;

(D) For paper products that are magazines, catalogues, telephone directories, or similar publications, the producer is the publisher;

(E) For paper products not described in subparagraph (D) of this paragraph, the producer is:

(i) The person or entity that manufactures the paper product under the manufacturer's own brand;

(ii) If there is no person or entity described in division (i) of this subparagraph, the producer is the person or entity that is the owner or licensee of a brand or trademark under which the paper product is used in a commercial enterprise, sold, offered for sale, or distributed in this state, whether or not the trademark is registered in this state;

(iii) If there is no person or entity described in division (i) or (ii) of this subparagraph, the producer is the brand owner of the paper product;

(iv) If there is no person or entity described in division (i), (ii), or (iii) of this subparagraph located in the United States, the producer is the person or entity that imports the paper product into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in this state;

(F) If the producer defined in subparagraphs (A) through (E) of this paragraph is a business operated wholly or in part as a franchise, the producer is the franchisor, if that franchisor has franchisees that have a commercial presence within this state; and

(G) The term 'producer' does not include a person or entity that:

(i) Annually sells, offers for sale, distributes, or imports into this state less than one ton of covered products; and

(ii) Has a global gross revenue of less than $2 million for the person or entity's most recent fiscal year.

(31) 'Producer Responsibility Organization' or 'PRO' means a nonprofit organization that qualifies for a tax exemption under Section 501(c)(3) of the Federal Internal Revenue Code of 1986 and is designated by a producer or group of producers to carry out the activities required of producers by this article. A PRO may form to carry out the responsibilities of beverage producer responsibility organizations or packaging producer responsibility organizations, or both.

(32) 'Producer responsibility plan' means a document describing the activities of a PRO to carry out the responsibilities of the PRO and producers under this article.

(33) 'Program year' means January 1 through December 31 of a calendar year.

(34) 'Public service provider' means a political subdivision that provides or that contracts or otherwise arranges with another party to provide end of life services for covered materials within its jurisdiction.

(35) 'Recyclable' means that the covered materials meet the requirements of Code Section 12-8-110.12 and can be sorted by entities that process recyclable materials generated in this state and have a consistently available responsible end market so that entities processing recycled feedstock are willing to purchase or otherwise arrange to accept that type of materials for use in the development of a new product. (36)(A) 'Recycling' or 'recycle' means the act of collecting and processing materials and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace.

(B) To be considered recycling, the process shall meet all of the following, as determined by the department:

(i) Results in postconsumer recycled content material for new packaging or product applications, as certified by a third party approved by the department;

(ii) Does not include combustion, fuel production, or other forms of energy recovery of covered materials in processing or disposal;

(iii) Displaces the use of virgin materials;

(iv) Complies with all established federal and state laws and regulations governing greenhouse gas emissions and air and water quality standards; and

(v) Sends covered materials to a responsible end market.

(i) Combustion;

(ii) Fuel production;

(iii) Other forms of energy recovery; or

(iv) Disposal or disposition within the footprint of a landfill.

(37) 'Recycling rate' means the amount of covered materials recycled using approved processes determined to be recycling by the department pursuant to Code Section 12-8-110.12, by covered material type, in a plan year divided by the total amount of that covered material type sold, offered for sale, or distributed in this state by weight.

(38) 'Redemption facility' means a specific area where individuals may bring covered materials to place into material-specific receptacles for the purpose of reuse, recycling, or composting.

(39) 'Redemption rate' means the amount of beverage containers accepted at redemption facilities in a plan year divided by the total amount of beverage containers sold, offered for sale, or distributed in this state.

(40) 'Refillable' means covered materials designed to be refilled by consumers multiple times for the same or similar purpose in their original format, and that are sold, offered for sale, or distributed to consumers once for the duration of their usable life.

(41) 'Reimbursement rates' means payments that are made to service providers by a packaging PRO for end of life services provided under a producer responsibility plan and that are:

(A) Based on a formula approved by the department; and

(B) Calculated on a per unit basis, such as per ton, per item, per household, or another unit of measurement.

(42) 'Responsible end market' means a materials market that:

(A) Recycles, composts, or otherwise recovers materials and disposes of contaminants in a manner that minimizes environmental harm and risks to public health and worker health and safety;

(B) Complies with all applicable international treaties and federal, state, and local laws and regulations, including, but not limited to, all requisite licensing and permit requirements and laws and regulations governing greenhouse gas emissions, air and water quality standards, trade regulation, and human rights and labor standards; and

(C) Does not disproportionately burden environmental justice areas and low-income communities with negative human health and environmental impacts of pollution or other environmental hazards resulting from the operation of the end market.

(43) 'Retailer' means any established person, corporation, partnership, business, facility, vendor, organization, or other entity that sells or provides merchandise, goods, or materials directly to a customer.

(44) 'Reusable' means covered materials designed to be recirculated multiple times for the same or similar purpose in their original format in a system for reuse, that are owned by producers or a third party, and are returned to producers or a third party after each use.

(45) 'Reuse' means the return of reusable covered materials to the marketplace and the continued use of the reusable covered materials for their original intended purpose.

(46) 'Reuse rate' means the amount of reusable covered materials returned to producers or a third party after use, divided by the total amount of covered materials sold, offered for sale, or distributed into the state, measured per item.

(47) 'Service provider' means an entity that provides end of life services under a producer responsibility plan and includes public service providers.

(48) 'Single-use' means conventionally disposed of after a single use, including through recycling or composting, or not sufficiently durable or washable to be, or not intended to be, reusable or refillable.

(49)(A) 'Source reduction' means the reduction in the amount of covered material created by a producer relative to an established baseline.

(B) Methods of source reduction include, but are not limited to:

(i) Shifting to reusable or refillable covered materials;

(ii) Eliminating unnecessary covered materials;

(iii) Right-sizing, optimizing, or bulking of covered materials; or

(iv) Concentrating the product to reduce covered material use.

(i) Replacing a recyclable or compostable covered material with a nonrecyclable or noncompostable covered material or a covered material that is less likely to be recycled or composted; or

(ii) Switching from virgin covered material to postconsumer recycled content.

(50) 'Toxic substance' means a substance that is identified as an additive of high concern under Code Section 12-8-110.15.

12-8-110.2.

(a) The department shall establish within 120 days of the effective date of this article the Producer Responsibility Advisory Board to review all programs conducted by PROs under this article and to advise the department and the PROs regarding producer responsibility plans and operations of and improvements to programs.

(b)(1) The advisory board shall consist of members appointed by the department for a term of four years, as follows:

(A) Three representatives of political subdivisions that represent rural, suburban, and urban areas of the state;

(B) Two representatives of community based organizations representing the interests of groups in environmental justice areas;

(D) One member representing recycling service providers focused on recycling collection or a state-wide association representing such recycling service providers;

(E) One member representing a composting facility that receives source separated compostable covered materials for composting or a state-wide trade association that represents such facilities;

(F) One member representing a nonprofit environmental organization;

(G) One member with expertise in deposit return systems;

(H) One member with expertise in reuse systems;

(I) One member representing retailers or a retail association in this state; and

(J) Representatives of approved PROs and the department who shall serve as nonvoting members.

(2) On making appointments under paragraph (1) of this subsection, the department shall not appoint voting members who are members of the General Assembly, registered lobbyists, or members of a PRO and shall endeavor to appoint members from all regions of the state.

(3) The advisory board shall convene its initial meeting within six months of the effective date of this article at which time a chairperson and vice chairperson shall be elected by majority vote of the board for terms not to exceed two years.

(4) The advisory board shall meet at least four times a year and may meet more frequently at the request of the chairperson or a majority of the members of the board.

(5) All advisory board meetings shall be open to the public.

(6) The advisory board shall make decisions by majority vote of the board.

(7) The advisory board may establish subcommittees.

(8) The department shall provide staff support to the advisory board and may contract with a third-party facilitator to assist in administering the activities of the advisory board. The PROs shall reimburse the department for all direct and related costs of the advisory board.

(9) Advisory board members shall be compensated as provided in the amount set forth in subsection (b) of Code Section 45-7-21 with reimbursement from the PROs.

(10) The department shall assist the advisory board in developing policies and procedures governing the disclosure of actual or perceived conflicts of interest that advisory board members may have as a result of their employment or the financial holdings of themselves or of their family members. Each advisory board member shall be responsible for reviewing and complying with such conflict-of-interest policies and procedures. An advisory board member shall disclose any instance of actual or perceived conflicts of interest at each meeting of the advisory board at which votes, recommendations, or other decisions are made by the advisory board. (c)(1) The advisory board shall:

(A) Consult with the department regarding the scoping of the needs assessment under Code Section 12-8-110.3 and provide written comments on the final needs assessment within 60 days of receipt of the assessment;

(B) Review and provide written comments to the PROs and the department on all new, updated, and revised producer responsibility plans; proposed producer responsibility plan amendments; annual reports; and coordination plans within 60 days of receipt of such documents and before the documents are submitted by the PRO to the department; and

(C) Consult with the department and review and provide written comments during any rule making to implement this article.

(2) The advisory board may comment on program operations or propose amendments to producer responsibility plans to the department at any time. Comments, recommendations, and proposed amendments shall be reviewed and considered by the department and the relevant PRO.

(3) Comments, recommendations, and proposed amendments submitted to the department by the advisory board shall be posted publicly on the department website.

(4) No later than June 30 of each even-numbered year, the advisory board shall submit to the House Committee on Natural Resources and Environment and the Senate Natural Resources and the Environment Committee a report that describes the work of the advisory board.

12-8-110.3.

(a) Not later than nine months after the effective date of this article, the department shall contract with an independent third party to conduct a state-wide needs assessment to be completed not later than one year after the initiation of the contract that, at a minimum:

(1) Inventories the infrastructure, capacity, funding level, and method and sources of financing of existing end of life services and supporting transportation and processing systems for packaging and paper products operating in the state, and evaluates strategies needed to:

(A) Maintain and improve operations of existing infrastructure;

(B) Increase waste prevention and reduction, reuse, recycling, and composting rates for packaging and paper products;

(C) Expand the availability and accessibility of end of life services for packaging and paper products to all residents of the state to meet or exceed convenience standards; and

(D) Support public and private investment to meet performance standards under Code Section 12-8-110.7, increase market demand for recycled packaging and paper products and finished compost, and increase the share of packaging and paper products that are being reused through an established reuse system;

(2) Identifies the viability and robustness of markets for reuse of packaging and paper products and for recycled packaging and paper products and the degree to which these markets can be considered responsible end markets;

(3) Identifies actions necessary to reduce the level of contamination of source-separated recyclable and compostable materials that include packaging and paper products collected for recycling and composting to reduce impacts of contamination on recycling and composting facilities;

(4) Assesses the availability of end of life services provided at all residential covered entities in the state;

(5) Assesses the availability, gaps, and costs associated with providing end of life services to nonresidential covered entities, with particular attention to small businesses, and identify which types and locations of nonresidential covered entities could be provided with end of life services that would increase state-wide reduction, reuse, recycling, and composting rates to meet the performance standards in Code Section 12-8-110.7 in a cost-effective manner;

(6) Reviews existing consumer education strategies on source reduction, reuse, recycling, and composting of packaging and paper products in this state and funding needed to implement education best practice strategies;

(7) Identifies factors to be considered in developing reimbursement rates to service providers for end of life services delivered under a producer responsibility plan, including:

(A) Population size and density, including typical route length to collect packaging and paper products from covered entities;

(B) Distance from covered entities to the nearest reuse facility, material recovery facility, or composting facility or to facilities for consolidation and transfer;

(D) Equipment costs;

(E) Cost of living based on living wage in the region; and

(F) Other factors that may contribute to regional or jurisdictional cost differences;

(8) Identifies information to be considered in determining whether packaging or paper products are reusable, recyclable, or compostable, including its potential to meet quality standards necessary to be used in the marketplace;

(9) Compiles information on the presence of toxic substances in each packaging and paper product type and their potential impacts on consumers and the environment;

(10) Identifies disparities in end of life services available to covered entities located in environmental justice areas and proposes recommendations to reduce or eliminate the disparities and meet or exceed convenience standards;

(11) Proposes plans and metrics for how to measure source reduction, recycling, reuse, and composting;

(12) Establishes current rates across the state for each packaging and paper product type, as applicable for each of the following:

(A) Reuse;

(B) Recycling;

(D) Postconsumer recycled content;

(13) Estimates the level of funding necessary to support end of life services for packaging and paper products to meet the performance standards in Code Section 12-8-110.7;

(14) Evaluates options for third-party certifications as described in Code Section 12-8-110.10; and

(15) In the first needs assessment, establish a baseline for the source reduction performance standard based on the amount of single-use plastic packaging that was sold, offered for sale, or distributed in this state in the calendar year following the effective date of this article.

(b) The first needs assessment shall be completed not later than one year and nine months after the effective date of this article.

(d) Subsequent needs assessments shall include updated information on the topics specified in subsection (a) of this Code section as well as any additional information deemed necessary to meet the requirements of this article, as determined by the department, including, but not limited to, inclusion of beverage containers in future needs assessments.

(e) The PROs shall reimburse the department for the cost of conducting the needs assessment according to Code Section 12-8-110.4, and costs for updated needs assessments shall be assigned to PROs using the process set forth under subsection (f) of Code Section 12-8-110.4.

12-8-110.4.

(a) Not later than one year after the effective date of this article, no producer shall sell, offer for sale, or distribute packaging or paper products in this state unless the producer is registered with a packaging PRO that is approved pursuant to this Code section or has applied to independently participate in a producer responsibility plan under paragraph (3) of subsection (c) of this Code section.

(b) Not later than one year after the effective date of this article, no producer shall sell, offer for sale, or distribute beverage containers in this state unless the producer is registered with the beverage PRO that is approved pursuant to this Code section. (c)(1) Not later than nine months after the effective date of this article, the department shall select a single packaging PRO and a single beverage PRO to implement activities under this article. To be selected, a PRO shall:

(A) Submit an application following a procedure established by the department;

(B) Be an independent nonprofit organization that qualifies for a tax exemption under Section 501(c)(3) of the Federal Internal Revenue Code of 1986;

(C) Have a governing board that represents the diversity of covered materials placed on the market by those entities, and of producers in terms of size; and

(D) Have adequate financial responsibility and financial controls in place to ensure proper management of funds.

(2) A single PRO may be formed to perform the duties of both a packaging PRO and beverage PRO at the department's discretion if the PRO agrees to comply with all requirements and obligations applicable to both a packaging PRO and beverage PRO as established in this article.

(3) A producer of packaging and paper products may comply with this article individually without participating in a PRO if the producer can demonstrate to the department, and the department determines at its sole discretion, that the producer can demonstrate a recycling, reuse, or composting rate of 65 percent for three consecutive years prior to their application, and on and after that date demonstrates a recycling, reuse, or composting rate at or over 70 percent annually.

(4) A producer who chooses to comply with this article individually under paragraph (3) of this subsection shall assume individual responsibility for complying with all requirements and obligations applicable to a packaging PRO as outlined in this article.

(5) After the expiration of the first packaging producer responsibility plan and in consultation with the advisory board, the department may approve applications from additional organizations to serve as a packaging PRO if the department determines that additional packaging PROs would be beneficial in satisfying the requirements of this article and that the applying packaging PRO meets the requirements of this Code section.

(6) If the department approves more than one packaging PRO under paragraph (5) of this subsection, producers of packaging and paper products shall choose one packaging PRO with which to register, unless they independently participate in an approved producer responsibility plan under paragraph (3) of this subsection. (d)(1) Not later than nine months after the effective date of this article, the department shall provide written notice to the PROs of the preregistration fee to be paid by each, which shall be calculated as follows:

(A) For the packaging PRO, the department's estimate of the cost of conducting the needs assessment required under Code Section 12-8-110.3 and the department's cost to administer this article during the period before the initial registration of the PRO with regard to packaging and paper products; and

(B) For the beverage PRO, the department's cost to administer this article during the period before the initial registration of the PRO with regard to beverage containers.

(2) Within 90 days of receipt of the notice from the department under paragraph (1) of this subsection, each PRO shall remit payment for those costs in full to the department.

(e) Not later than July 1 of each year after its initial selection under subsection (c) of this Code section, each PRO shall register with the department by submitting the following:

(1) Contact information for a person responsible for implementing the PRO's producer responsibility plan;

(2) A list of all producers participating in the PRO and, for each producer, a list of all brands of the producer's covered materials sold, offered for sale, or distributed in this state;

(3) Certification that the PRO has written agreements with each producer, which shall be made available to the department upon request, stating that the PRO is the producer's agent with respect to fulfilling the responsibilities of producers required under this article and that the producer pledges to comply with those provisions;

(4) A list of current board members and the executive director if different than the person responsible for implementing the producer responsibility plan; and

(5) Payment of the annual fee required under this Code section. (f)(1) Not later than March 31 of each year, the department shall notify each PRO in writing of the amount of the fee for the following year to be paid with their annual registration under subsection (e) of this Code section, which shall not exceed the department's estimate of the costs required to:

(A) Administer, implement, and enforce this article, including staff costs;

(B) Rule making to implement this article, if applicable;

(D) Conduct a needs assessment under Code Section 12-8-110.3.

(2) In setting the annual fee for each PRO, the department shall develop and implement a process to allocate costs to each PRO proportional to the costs associated with that PRO, including costs for future needs assessments.

(3) The department shall develop and implement a process to reconcile the fees paid by a PRO under this Code section with the actual costs incurred by the department, by means of credits or refunds to or additional payments required of a PRO, as applicable. (g)(1) A PRO is responsible for compliance with this Code section, including the preparation and implementation of a producer responsibility plan, the achievement of performance standards specified in Code Section 12-8-110.7, and the preparation and submission to the department of annual reports.

(2) At least 90 days before the following items are submitted to the department, a PRO shall submit to the advisory board for review and comment:

(A) All new, updated, and revised producer responsibility plans and proposed amendments; and

(B) All annual reports.

(3) A PRO shall respond in writing to written comments made by the advisory board on all new, updated, and revised producer responsibility plans, proposed amendments, and annual reports and shall justify why any recommendations made in the advisory board's comments were not incorporated into the applicable document.

(4) A PRO shall maintain a website that uses best practices for accessibility that contains:

(A) Information regarding a process that members of the public can use to contact the PRO with questions;

(B) The draft and approved producer responsibility plan and any draft and approved amendments;

(C) The lists of recyclable and compostable covered materials developed by the department under Code Sections 12-8-110.12 and 12-8-110.13;

(D) The most recent and all past needs assessments, as applicable;

(E) Annual reports filed by the PRO;

(F) The coordination plan developed under Code Section 12-8-110.9;

(G) A link to administrative rules implementing this Code section; and

(H) Comments of the advisory board on the producer responsibility plan, proposed amendments, and annual plan documents and the responses of the PRO to those comments.

(5) In addition to the requirements in paragraph (4) of this subsection, a website maintained by a packaging PRO shall contain a directory of all service providers operating under the producer responsibility plan, grouped by location or political subdivision, and how to request service.

(6) In addition to the requirements in paragraph (4) of this Code section, a website maintained by the beverage PRO shall contain a list and map of all redemption facilities and what redemption modalities are available at each location.

(7) A PRO shall notify the department within 30 days if a change is made to the contact information for a person responsible for implementing the producer responsibility plan, or a change to the board members.

12-8-110.5.

(a)(1) Each PRO shall submit a producer responsibility plan to the department describing the proposed operation of programs to fulfill the requirements of this article.

(2) For the packaging PRO selected under paragraph (1) of subsection (c) of Code Section 12-8-110.4, the producer responsibility plan shall be submitted to the department not later than 30 months after the effective date of this article and every five years thereafter.

(3) For additional approved packaging PROs, producer responsibility plans shall be submitted following a process and timeline to be determined by the department, including review by the advisory board under subparagraph (c)(1)(B) of Code Section 12-8-110.2 and paragraphs (2) and (3) of subsection (g) of Code Section 12-8-110.4.

(4) For the beverage PRO selected under paragraph (1) of subsection (c) of Code Section 12-8-110.4, the producer responsibility plan shall be submitted to the department not later than 18 months after the effective date of this article and every five years thereafter.

(5) A producer responsibility plan shall describe activities to be undertaken during the next five program years and shall, at a minimum:

(A) Describe how the PRO and participating producers will meet the performance standards described in Code Section 12-8-110.7;

(B) Expand end of life services for covered materials for covered entities, including how they will meet or exceed convenience standards;

(C) Summarize consultations held with the advisory board and other stakeholders to provide input on the producer responsibility plan, a list of recommendations that were incorporated into the producer responsibility plan as a result, and a list of rejected recommendations that includes the reasons for rejection;

(D) Describe how the program uses and interacts with existing end of life services and service providers;

(E) Describe expanded and improved operations specifically designed to ensure that the performance targets under subparagraph (G) of this paragraph and performance standards under Code Section 12-8-110.7 are met;

(F) Describe the viability of available responsible end markets and what improvements are needed to markets to improve program performance and ensure that performance targets and standards are met;

(G) Propose annual performance targets for each covered material type that will ensure compliance with the performance standards set forth in Code Section 12-8-110.7 and describe how the PRO will measure progress against those performance targets;

(H) Include a proposed budget for each of the next five program years;

(I) Include proposed producer fees in a fee schedule by material category and describe the process used to calculate producer fees, including how the fees reflect the requirements of this article;

(J) Certify that the PRO shall treat data submitted by service providers as nonpublic data;

(K) Describe activities the PRO shall conduct to ensure recyclers and composters of covered materials send covered materials to responsible end markets;

(L) Describe proposed campaigns to educate consumers about how to manage covered materials in an environmentally sound manner and how to access end of life services for covered materials, and describe how these campaigns will work with consumer education provided by nonprofit organizations, local governments, service providers, and other organizations;

(M) Describe how the PRO will assist producers in improving product labels as a means of informing consumers about environmentally sound management of covered materials, including how to access end of life services;

(N) Describe how the PRO will assist producers in product redesign, source reduction, compliance with Code Section 12-8-110.15, and other necessary actions that support overall performance targets and standards; and

(O) Include a plan for adopting third-party certifications approved pursuant to Code Section 12-8-110.10, as applicable.

(6) In addition to the requirements of paragraph (5) of this subsection, a producer responsibility plan submitted by a packaging PRO shall, at a minimum:

(A) Include a source reduction plan designed to meet the requirements of Code Section 12-8-110.7 that describes, at a minimum:

(i) How the PRO will collect individual source reduction plans from participating producers that include:

(I) The amount of plastic packaging the producer plans to source reduce to meet the performance standards in subsection (a) of this Code section, including a description of how the producer plans to achieve the source reduction; and

(II) Other information as determined necessary by the PRO to achieve the source reduction performance standard and reporting requirements;

(ii) How the PRO will aggregate individual producer source reduction plans to achieve the performance standard in Code Section 12-8-110.7;

(iii) How the PRO will ensure participating producers are making appropriate progress to achieve their planned source reduction; and

(iv) To ensure equity in the market, how the PRO will require a new participating producer or a producer that introduces plastic packaging material that is new to the producer subsequent to the approval of the PRO's plan to optimize and right size the plastic packaging, including through the use of malus fees;

(B) Describe how the PRO will prioritize the use of existing service providers pursuant to subsection (d) of this Code section;

(C) Include a reimbursement formula and a schedule of reimbursement rates for service providers that elect to participate in the program and a description of how the formula and schedule were developed;

(D) Include a list of packaging and paper products designated for collection and the method of collection to be used for each;

(E) Describe how reimbursements will be distributed;

(F) Propose a dispute resolution process for disputes regarding reimbursements;

(G) Include terms and conditions for service agreements with service providers and templates of the service agreements; and

(H) Describe how the PRO will work with service providers to increase postconsumer recycled content in trash, recycling, and composting carts utilized by PRO funded programs.

(7) In addition to the requirements of paragraph (5) of this subsection, a producer responsibility plan submitted by a beverage PRO shall, at a minimum:

(A) Include a plan for beverage container redemption and processing mechanisms that provide equitable access that meets or exceeds the convenience standards in paragraph (2) of subsection (e) of Code Section 12-8-110.6 across this state;

(B) Describe how the beverage PRO will operate redemption facilities or enter into agreements with redemption facility operators to meet or exceed the convenience standards in paragraph (2) of subsection (e) of Code Section 12-8-110.6;

(C) Describe how the beverage PRO will make payments to material recovery facilities or a packaging PRO, as applicable, for beverage containers processed in material recovery facilities pursuant to paragraph (4) of subsection (g) of Code Section 12-8-110.6 and paragraph (2) of subsection (a) of Code Section 12-8-110.9; and

(D) Include a methodology to determine the average amount of redeemable beverage containers per ton of material recycled to be used in calculating the payments in subparagraph (C) of this paragraph, which may include requirements for standardized measurement of beverage containers that enter material recovery facilities.

(8) The department shall review a producer responsibility plan and approve, modify, or reject it within 60 days of receipt, providing reasons for modification or rejection in writing to the PRO. A PRO shall submit a revised producer responsibility plan, if necessary, within 60 days of receiving the department's decision. The department shall review a revised producer responsibility plan within 45 days of receipt. The department may require submission of additional revised producer responsibility plans until a revised producer responsibility plan is approved.

(9) A PRO may file a proposed amendment to the producer responsibility plan with the department at any time. The department, with recommendations from the advisory board, may approve, modify, or reject the proposed amendment. A PRO shall not change operations under an approved producer responsibility plan without the department's written approval.

(10) The department may require amending a producer responsibility plan if the advisory board petitions the department to request an amendment and the department determines that an amendment is necessary to ensure that a PRO maintains progress to meet performance targets under subparagraph (a)(5)(G) of Code Section 12-8-110.5 and performance standards under Code Section 12-8-110.7 and the goals for the producer responsibility plan. A PRO shall address any comments and feedback and shall list rejected recommendations and the reasons for rejection during the amendment approval process.

(11) Within 30 calendar days after approval of a producer responsibility plan or amendments by the department, a PRO shall implement the approved producer responsibility plan and post the plan on the PRO's website. (b)(1) A PRO shall collect fees from producers sufficient to fulfill the responsibilities under this article, including:

(A) The annual fee required under Code Section 12-8-110.4;

(B) Fees from producers of plastic covered materials as required to fund the reuse financial assistant program pursuant to Code Section 12-8-110.14;

(D) Establishment and maintenance of a financial reserve that is sufficient to operate the program in a fiscally prudent and responsible manner.

(2) Fees for producers shall be structured considering the following:

(A) For all PROs:

(i) Base fees that are based on the total amount of covered material by material type each producer sells, offers for sale, or distributes in this state in the prior program year calculated on a per unit basis, such as per ton, per item, or another unit of measurement and the cost for end of life services for those covered materials;

(ii) Prioritize reuse by charging fees for covered materials that are managed through a reuse system only once;

(iii) Increased or decreased fees to incentivize using materials and design attributes that reduce the environmental and human health impacts of covered materials, by the following methods in order of priority:

(I) Eliminating the presence of toxic substances;

(II) Reducing the amount of packaging per individual covered material that is necessary to efficiently deliver a product without damage or spoilage and without reducing its ability to be recycled;

(III) Increasing the percentage of covered materials managed in a reuse system;

(IV) Enhancing the recyclability of covered materials; and

(V) Increasing the proportion of postconsumer material used to produce covered materials; and

(iv) Increased or decreased fees as necessary to incentivize producers to achieve the performance targets under subparagraph (a)(5)(G) of Code Section 12-8-110.5 and performance standards under Code Section 12-8-110.7 for producers and the PRO as a whole;

(B) In addition to the requirements in subparagraph (A) of this paragraph, a packaging PRO shall:

(i) To the extent possible, establish a fee schedule that is consistent with similar fees being collected in other states with similar requirements for producers; and

(ii) Collect revenues to be used for and that are sufficient to pay in full reimbursements to service providers for end of life service costs incurred under a producer responsibility plan approved by the department, including the cost of ensuring all employees working at facilities to collect, process, and aggregate packaging and paper products are paid a living wage, receive health benefits, and have strong labor and work safety practices; and

(i) Collect revenues to be used for and that are sufficient to pay in full:

(I) The cost of collecting and processing each beverage container type;

(II) The cost of ensuring all employees working at facilities to redeem, collect, process, and aggregate beverage containers are paid a living wage, receive health benefits, and have strong labor and work safety practices;

(III) The set payments to material recovery facilities and redemption facilities as required by subsection (g) of Code Section 12-8-110.6 and paragraph (2) of subsection (a) of Code Section 12-8-110.9; and

(IV) Any other responsibilities of the beverage PRO under Code Section 12-8-110.6; and

(ii) With the revenue from the sale of redeemed beverage containers, credit each beverage PRO member against the fee charged under this subsection based on:

(I) The revenue generated from the sale of each beverage container type; and

(II) The percentage of each beverage container type that a beverage PRO member distributes or sells in this state.

(3) Fees collected under this Code section shall not be used for costs associated with:

(A) An administrative civil penalty pursuant to this article;

(B) Litigation between the PRO or a participating producer and the state;

(D) Subsidizing, incentivizing or otherwise supporting incineration or other technologies that do not meet the definition of recycling pursuant to paragraph (36) of subsection (a) of Code Section 12-8-110.1.

(4) Any fees collected under this Code section in excess of the costs identified in paragraph (1) of this subsection shall be reinvested to improve end of life services and consumer education.

(5) No retailer of covered materials or products packaged in covered materials shall charge a point-of-sale or point-of-collection fee to a consumer for services provided under a producer responsibility plan, unless the fee is a deposit that is made in connection with a product's reuse or recycling and that will be returned to the consumer.

(c) Each PRO, in collaboration with and after consulting with the department, political subdivisions, and the advisory board, as well as service providers and retailers as relevant, shall:

(1) Develop and disseminate easy-to-understand, culturally responsive materials designed to educate covered entities in multiple languages regarding the management of covered materials through end of life services;

(2) Conduct or fund others to conduct state-wide and local campaigns promoting awareness of how covered entities can conveniently access end of life services for covered materials; and

(3) Disseminate education and outreach materials to the department, service providers, retailers, community organizations, and political subdivisions as relevant. (d)(1) During the term of the initial packaging producer responsibility plan approved by the department, a packaging PRO shall prioritize contracting with existing service providers in this state through a transparent, open, and fair bidding process for end of life services for packaging and paper products at service volumes that are no less than those delivered by the service providers as of the effective date of this article, so long as the service provider meets the requirements under paragraph (5) of this subsection and is able to meet operating standards necessary for the PRO to maintain progress toward meeting performance targets under subparagraph (a)(5)(G) of Code Section 12-8-110.5 and performance standards under Code Section 12-8-110.7.

(2) Paragraph (1) of this subsection shall apply to:

(A) Service providers that provide end of life services for covered entities; and

(B) Service providers that process packaging and paper products.

(3) A packaging PRO shall contract with service providers identified in paragraph (2) of this subsection to conduct services identified in paragraph (2) of this subsection. The terms and conditions of service shall be established under a service agreement between both parties and shall include a reimbursement rate for services that is based on a formula described in the approved producer responsibility plan as required by this Code section, that:

(A) Incorporates relevant cost information identified by the needs assessment conducted under Code Section 12-8-110.3; and

(B) Reflects conditions that affect end of life service and processing costs in the jurisdiction in which the services are provided, including, but not limited to:

(i) The number and size of covered entities by location type;

(ii) Population density; and

(iii) Collections methods employed.

(4) A packaging PRO shall use open, competitive, and fair procurement practices when entering into contracts with service providers.

(5) Contracts under this subsection shall require that service providers:

(A) Have strong labor standards and work safety practices, including, but not limited to, safety programs, health benefits, and living wages;

(B) Meet established operating standards, such as capture rates, residual rates, and bale quality; and

(6) The end of life services delivered by a packaging PRO under a producer responsibility plan shall not reduce the level of convenience or service quality that was provided to any covered entity before the producer responsibility plan was implemented.

(7) Nothing in this Code section shall require a local government to operate under a producer responsibility plan, nor shall it restrict the authority of a local government to provide waste management services to residents or to contract with any entity to provide waste management services.

(8) If there is not a public service provider or a public service provider elects not to operate under the packaging producer responsibility plan or organize and contract with a private service provider, it is the responsibility of the packaging PRO to contract with a private service provider to provide end of life services to all covered entities.

(9) A local government providing services to covered entities shall provide at least a one-year advance notice to the PRO if the local government will cease to coordinate end of life services to covered entities.

12-8-110.6.

(a)(1) All beverage containers that are made of 90 percent or more aluminum, steel, glass, HDPE, PP, or PET and are sold, offered for sale, or distributed in this state shall have the applicable refund value pursuant to subsection (b) of this Code section not later than two years after the effective date of this article.

(2) All beverage containers that are sold, offered for sale, or distributed in this state shall have the applicable refund value pursuant to subsection (b) of this Code section not later than three years after the effective date of this article. (b)(1) Not later than two years after the effective date of this article, the applicable refund value shall be 10¢.

(2) If the beverage PRO's redemption rate does not reach the redemption performance standards as required under paragraph (1) of subsection (g) of Code Section 21-8-110.7, then the applicable refund value for every beverage container sold, offered for sale, or distributed in this state shall increase to 15¢ for each beverage container, and the beverage PRO shall conduct a study to determine whether any education or convenience factors of the plan need to be strengthened.

(c)(1) A producer of a beverage container that is sold, offered for sale, or distributed in this state shall clearly display on the top or side of the beverage container:

(A) The abbreviation 'RV,' which indicates the container has a refund value;

(B) The abbreviation of the state; and

(2) A producer of a beverage container that is sold, offered for sale, or distributed in this state may include a barcode or unique code verification on the beverage container to allow for automated identification.

(d) It is unlawful to redeem a beverage container in this state that was not sold, offered for sale, or distributed to a consumer in this state.

(e)(1) The beverage PRO shall offer, at a minimum, the following modalities of beverage container redemption in this state:

(A) Bag drop programs that use standard bags that allow for multiple beverage containers to be redeemed at redemption facilities; and

(B) Individual container redemption, including convenient options for high-volume redemption without the use of a standard bag.

(2) The beverage PRO shall ensure that the redemption modalities in paragraph (1) of this subsection for beverage containers meet or exceed the following convenience standards:

(A) All consumers who pay a deposit have reasonably convenient opportunities to redeem, including access to redemption facilities that provide for cash redemption;

(B) Redemption options should be as convenient as beverage purchase options;

(D) All redemption locations, including retail locations and other redemption facilities, shall collect all beverage containers with applicable refund value pursuant to subsection (f) of this Code section.

(3) A retail establishment may choose to serve as a redemption facility or as the site of a collection event, or both, through mutual agreement with the beverage PRO.

(4) The department shall use the following criteria to evaluate whether the requirements of paragraph (2) of this subsection are met:

(A) The proximity of redemption locations to the volume of beverage sales in an area;

(B) Access in rural counties that does not require additional vehicle miles traveled;

(D) Access is provided in economically strained and underserved communities;

(E) The number and geographic distribution of high-volume redemption opportunities; and

(F) Redemption options shall not disproportionately burden underserved communities or populations.

(5) In the event that the beverage PRO does not achieve the convenience standards in paragraph (2) of this subsection as evaluated by the department pursuant to paragraph (4) of this subsection, the department shall engage in rulemaking to achieve the convenience standards in paragraph (2) of this subsection.

(6) If the standard bags for a bag drop program under subparagraph (A) of paragraph (1) of this subsection are made of plastic film, the beverage PRO shall:

(A) Ensure that the bags have a minimum of 50 percent postconsumer recycled content;

(B) Demonstrate, upon request of the department, that the waste film from the bags is being recycled at responsible end markets; and

(f) Excluding the material recovery facility and redemption facility payments in subsection (g) of this Code section, the beverage PRO or a redemption facility operator acting pursuant to an agreement with the beverage PRO is not required to pay refunds on:

(1) A beverage container that:

(A) Visibly contains or is contaminated by a substance other than water, residue of the original contents, or ordinary dust;

(B) Is crushed or broken; or

(2) A beverage container that the beverage PRO or redemption facility operator has reasonable grounds to believe was bought in another state; or

(3) A beverage container for which the beverage PRO or redemption facility operator has reasonable grounds to believe a refund has already been given. (g)(1) On a monthly basis, operators of material recovery facilities shall submit to the beverage PRO the number of tons of beverage containers the facility processed in the previous month.

(2) On a monthly basis, operators of redemption facilities shall submit to the beverage PRO the number of beverage containers processed by the facility in the previous month.

(3) Starting after the first full month that beverage containers are sold, offered for sale, or distributed in this state with the applicable refund value, the beverage PRO shall make a monthly payment directly to each redemption facility operator that is based on the data submitted by the redemption facility operators under paragraph (2) of this subsection.

(4) Starting after the first full month that beverage containers are sold, offered for sale, or distributed in this state with the applicable refund value and until the coordination plan in Code Section 12-8-110.9 is approved by the department, the beverage PRO shall make a monthly payment directly to each material recovery facility that processes beverage containers that is based on the data submitted by the redemption facility operators under paragraph (1) of this subsection.

(5) The monthly payment required in paragraph (4) of this subsection to material recovery facilities shall reflect a payment of at least 50 percent of the applicable refund value for each beverage container that the material recovery facility processes based on the methodology established in subparagraph (a)(7)(D) of Code Section 12-8-110.5.

(6) The beverage PRO may conduct two audits per calendar year on the quality and quantity of the redemption facility or material recovery facilities' material upon request by the beverage PRO and at the beverage PRO's expense.

(h) The beverage PRO shall pay for:

(1) Any beverage container redemption or processing mechanism or self-service kiosk that the beverage PRO installs, services, and operates;

(2) Any facilities in this state necessary to efficiently aggregate and process the material collected at redemption locations;

(3) Reasonable costs incurred by redemption facility operators;

(4) A credit to consumers for the cost of the bags that are processed through the beverage PRO's bag drop program;

(5) The material recovery facility and redemption facility payments under this Code section and paragraph (2) of subsection (a) of Code Section 12-8-110.9; and

(6) Necessary investments and improvements to provide services to or enhance the redemption experience of diverse or low-income consumers redeeming beverage containers.

(i) The beverage PRO shall use any applicable refund value that is not returned to the consumer for any of the following purposes:

(1) Education and outreach activities to encourage redemption activity;

(2) Increasing the number of redemption facilities; or

1000 (3) Operation of the redemption system.

1001 12-8-110.7.

1002 (a)(1) Each packaging PRO shall propose performance standards based on the needs 1003 assessment that meet the state-wide requirements in subsection (f) of this Code section. 1004 (2) Performance targets shall be proposed in the PRO plan. Performance targets shall 1005 include:

1006 (A) Reuse rates;

1007 (B) Return rates;

1008 (C) Recycling rates;

1009 (D) Composting rates;

1010 (E) Plastic source reduction; and

1011 (F) Postconsumer recycled content requirements by covered material type. 1012 (b)(1) Beginning the first month after beverage containers are sold, offered for sale, or 1013 distributed in this state with the applicable refund value: 1014 (A) The beverage PRO shall provide redemption options that meet the redemption 1015 convenience standards in paragraph (2) of subsection (e) of Code Section 12-8-110.6; 1016 and

1017 (B) All redeemed beverage containers shall be recycled or reused. 1018 (2) The beverage PRO shall propose performance standards to meet the state-wide 1019 requirements in subsection (g) of this Code section, including: 1020 (A) Redemption rates;

1021 (B) Reuse rates; and

1022 (C) Postconsumer recycled content requirements by covered material type. 1023 (c) The department may require a PRO to obtain third-party certification of any activity 1024 or achievement of any performance target required by this article if a third-party 1025 certification is readily available, deemed applicable, of reasonable cost, and meets the 1026 requirements of Code Section 12-8-110.10. The department shall provide the PRO with 1027 notice of at least one year prior to requiring the use of third-party certification. 1028 (d) Proposed performance standards shall demonstrate continuous improvement over time. 1029 (e) For purposes of determining whether performance targets are being met, the PRO plan 1030 shall provide a methodology for measuring performance targets, subject to approval by the 1031 department, based on the metrics and plans outlined in the needs assessment. 1032 (f) The department shall establish state-wide requirements and a date by which those 1033 requirements shall be met for each of the following categories for packaging and paper 1034 products:

1035 (1) Reuse rates;

1036 (2) Return rates;

1037 (3) Recycling rates;

1038 (4) Composting rates;

1039 (5) Plastic source reduction; and

1040 (6) Postconsumer recycled content requirements by covered material type. 1041 (g) The department shall establish state-wide requirements and a date by which those 1042 requirements shall be met for each of the following categories for beverage containers: 1043 (1) Redemption rates;

1044 (2) Reuse rates; and

1045 (3) Postconsumer recycled content requirements by covered material type. 1046 12-8-110.8.

1047 (a)(1) Not later than four years after the effective date of this article, and each March 1048 thereafter, each PRO shall submit a written annual report to the department that contains, 1049 at a minimum, the following information for the previous program year: 1050 (A) The amount of covered materials sold, offered for sale, or distributed in this state 1051 by the participating producers of that PRO, by material type; 1052 (B) The amount of covered materials reused, recycled, and composted by material 1053 type;

1054 (C) A description of the responsible end markets that accepted covered materials; 1055 (D) The total cost to implement the producer responsibility plan and a detailed 1056 description of plan expenditures;

1057 (E) A copy of a financial audit of program operations conducted by an independent 1058 third party approved by the department;

1059 (F) A list of any producers found to be out of compliance with the requirements of this 1060 article and actions taken by the PRO to return the producer to compliance; 1061 (G) A description of education and outreach activities undertaken, any evaluations 1062 conducted of their efficacy, and plans for next program year's activities; 1063 (H) A description of technical assistance provided to producers regarding source 1064 reduction and covered material redesign and actions taken by producers to reduce waste 1065 and redesign covered materials to be reusable, recyclable, and compostable and comply 1066 with Code Section 12-8-110.15;

1067 (I) An evaluation of the process established by the PRO to answer questions from 1068 covered entities regarding relevant end of life services; 1069 (J) A description of program performance problems that emerged in specific locations 1070 and efforts taken or proposed by the producer organization to address them; 1071 (K) Any proposed amendments to the producer responsibility plan to improve program 1072 performance or reduce costs;

1073 (L) A summary of consultations held with the advisory board and how any feedback 1074 was incorporated into the report as a result of the consultations, together with a list of 1075 rejected recommendations and the reasons for rejection; and 1076 (M) A description of progress made toward the performance targets in the PRO's 1077 producer responsibility plan under subparagraph (a)(5)(G) of Code Section 12-8-110.5 1078 and performance standards under Code Section 12-8-110.7. 1079 (2) To facilitate preparing the annual report, service providers operating under a service 1080 agreement with the PRO shall, if requested, forward relevant data to the PRO. The PRO 1081 shall treat any data submitted under this paragraph as nonpublic data. 1082 (3) A PRO that fails to meet a performance target established in the producer 1083 responsibility plan under subparagraph (a)(5)(G) of Code Section 12-8-110.5 shall, within 1084 90 days of filing an annual report under this Code section, file with the department a 1085 discussion of the factors contributing to the failure and propose an amendment to the 1086 producer responsibility plan specifying changes in operations that the producer 1087 responsibility plan will make that are designed to achieve the following year's targets. 1088 (b)(1) Each material recovery facility, composting facility, redemption facility, or similar 1089 facility operating under an agreement with a PRO shall report annually to the department 1090 and the PROs on the following:

1091 (A) Inbound and outbound contamination levels;

1092 (B) Incoming and outgoing weight of covered materials; 1093 (C) A list of incoming material sources, and outgoing material destinations that receive 1094 covered material by type of material and weight; 1095 (D) How materials are managed; and

1096 (E) Number of inbound and outbound beverage containers with the applicable refund 1097 value.

1098 (2) Annual reports under this subsection shall be published by the state and include a 1099 breakdown of covered materials and noncovered materials managed at facilities. 1100 (c) Each public service provider, including municipalities operating or contracting with 1101 a private service provider to operate a recycling, reuse, or composting program for covered 1102 materials and service providers directly contracting with a PRO, shall provide the following 1103 information annually to the relevant PRO:

1104 (1) Number of covered entities by covered entity type served by the program and total 1105 number of covered entities in the municipality;

1106 (2) Covered materials collected for recycling, reuse, or composting; 1107 (3) Method and frequency of recycling collection, including whether collection is 1108 through carts, bins, single stream, dual stream, or some other method; 1109 (4) Annual amounts of covered material collected for recycling, reuse, or composting; 1110 (5) Facility to which covered materials are delivered; and 1111 (6) Assessment of convenience, as compared to waste collection, tracked year over year. 1112 12-8-110.9.

1113 (a) The packaging and beverage PROs shall establish a coordinating body and 1114 coordination plan to ensure the efficient delivery of services and coordinated efforts to 1115 meet the requirements of this article. These coordinating efforts shall: 1116 (1) Ensure end of life service costs are fairly distributed, regardless of which system a 1117 consumer returns covered materials through;

1118 (2) Describe a method through which the PROs will compensate each other for handling 1119 covered materials and cross-program expenses;

1120 (3) Address planning and operating jointly funded infrastructure, including, but not 1121 limited to, alternative collection programs and reuse infrastructure; 1122 (4) Coordinate education and outreach to ensure consistent and appropriate messaging; 1123 (5) Coordinate activities under the reuse financial assistance program pursuant to Code 1124 Section 12-8-110.14; and

1125 (6) Periodically evaluate covered materials managed by each PRO and whether 1126 alternative management of those covered materials would better achieve the performance 1127 standards in Code Section 12-8-110.7.

1128 (b) The PROs, through the coordinating body, shall submit the coordination plan required 1129 under subsection (a) of this Code section to the department not later than the date on which 1130 the packaging PRO submits its first producer responsibility plan under paragraph (2) of 1131 subsection (a) of Code Section 12-8-110.5 and every five years thereafter. 1132 (c) The PROs, through the coordinating body, shall submit the coordination plan to the 1133 advisory board for review and comment at least 90 days before the plan is submitted to the 1134 department.

1135 (d) The department shall review the coordination plan or any amendments and approve, 1136 modify, or reject them following the process described in paragraphs (8) through (10) of 1137 subsection (a) of Code Section 12-8-110.5.

1138 (e) Within 30 calendar days after approval of the coordination plan or amendments by the 1139 department, the coordinating body and the beverage and packaging PROs shall implement 1140 the approved coordination plan and post the plan on each PRO's website. 1141 12-8-110.10.

1142 (a) The department shall adopt rules to review third-party certifications and create a 1143 publicly available list of approved third-party certifications for the following: 1144 (1) Postconsumer recycled content;

1145 (2) Responsible end markets;

1146 (3) Reusable covered materials; and

1147 (4) Recycling, composting, and reuse rates.

1148 (b) In the rules adopted under subsection (a) of this Code section, the department shall 1149 include procedures for periodic review of approved third-party certifications, including for 1150 public petition for review and for removal of approval for third-party certifications. 1151 12-8-110.11.

1152 (a) A PRO or an individual producer may, as part of a producer responsibility plan or in 1153 a separate filing with the department, propose alternative collection programs for covered 1154 materials that are not on the recyclable covered materials list developed under Code 1155 Section 12-8-110.12 or the compostable covered materials list developed under Code 1156 Section 12-8-110.13.

1157 (b) No alternative collection program shall be implemented without the department's 1158 written approval as described in this Code section. 1159 (c) The department shall, in consultation with the advisory board, service providers, 1160 political subdivisions, and others, approve or reject an alternative collection program for 1161 a covered material if petitioned by a PRO, or an individual producer. 1162 (d) The department shall establish a process by which the PRO or an individual producer 1163 can petition for an alternative collection program to be considered. 1164 (e) The department may only approve an alternative collection program if it meets, at a 1165 minimum, the following criteria:

1166 (1) The alternative collection program is accessible to at least 60 percent of the 1167 population of the state;

1168 (2) The covered material will be recycled and composted at a rate that meets or exceeds 1169 the rates set in the performance standards in Code Section 12-8-110.7; and 1170 (3) Covered materials are sent to responsible end markets. 1171 (f) The department shall publish a ruling on the alternative collection program describing 1172 why it was approved or denied and how it measured against the criteria listed in 1173 subsection (e) of this Code section.

1174 (g) Approved alternative collection programs shall be reviewed by the department every 1175 five years to ensure the alternative collection program continues to meet the criteria listed 1176 in subsection (e) of this Code section. If the alternative collection program fails to meet 1177 the criteria, the department shall remove the program from the list of approved alternative 1178 collection programs.

1179 (h) A producer that manages a type of covered material under an approved alternative 1180 collection program may offset their payment obligations to a PRO. 1181 12-8-110.12.

1182 (a) The department shall, in consultation with the advisory board, PROs, service providers, 1183 political subdivisions, and others, develop and publish a list of: 1184 (1) Approved processes determined to be recycling; and 1185 (2) Recyclable covered materials in the state.

1186 (b) In developing the list of approved processes determined to be recycling under 1187 paragraph (1) of subsection (a) of this Code section, the department shall ensure the 1188 approved processes meet the definition of recycling in paragraph (36) of subsection (a) of 1189 Code Section 12-8-110.1 and shall take into consideration: 1190 (1) The generation of hazardous waste;

1191 (2) The generation of greenhouse gases;

1192 (3) Environmental impacts;

1193 (4) Environmental justice area impacts;

1194 (5) Public health impacts; and

1195 (6) Meets an unmet need in this state.

1196 (c) The covered materials included on the list of recyclable covered materials under 1197 paragraph (2) of subsection (a) of this Code section shall meet the definition of recyclable 1198 in paragraph (35) of subsection (a) of Code Section 12-8-110.1 and shall meet all of the 1199 following criteria:

1200 (1) The covered material type and form is regularly accepted in residential recycling 1201 programs or redemption facilities and separated for mechanical or manual recycling by 1202 recycling programs for jurisdictions that collectively encompass at least 60 percent of the 1203 population of this state;

1204 (2) The covered material type and form is regularly sorted and aggregated into regularly 1205 traded commodity grades accepted for recycling at responsible end markets; 1206 (3) The covered material format falls into a relevant Institution of Scrap Recycling 1207 Industries specification;

1208 (4) Seventy-five percent of that covered material category, by unit, is in a recyclable 1209 format;

1210 (5) For plastic covered materials, the plastic covered material is designed to ensure 1211 recyclability and does not include any components, inks, adhesives, or labels that prevent 1212 the recyclability of the covered material according to the APR Design Guide published 1213 by the Association of Plastic Recyclers or its successor; 1214 (6) For nonplastic covered materials, the covered material is designed to ensure 1215 recyclability and does not include any components, inks, adhesives, or labels that prevent 1216 the recyclability of the covered material; and

1217 (7) The product or packaging does not contain an additive of high concern identified in 1218 Code Section 12-8-110.15.

1219 (d) Not later than two years after the effective date of this article, the department shall 1220 provide the lists required under subsection (a) of this Code section to the PROs, which shall 1221 forward the list to all service providers and political subdivisions as relevant. Recyclable 1222 covered materials in this state are required to be collected by service providers either 1223 directly contracted by a PRO or a public service provider receiving reimbursement from 1224 a PRO.

1225 (e) The department may update the lists in subsection (a) of this Code section every two 1226 years. PROs shall enact additions and removals from the lists across the state within one 1227 year of notification by the department. In adding or removing covered materials to the list 1228 of recyclable covered materials in this state, the department shall consider whether the 1229 covered material type and form will be accepted pursuant to a producer responsibility plan. 1230 12-8-110.13.

1231 (a) The department shall, in consultation with the advisory board, the PROs, service 1232 providers, political subdivisions, and others, develop a list of compostable covered 1233 materials in this state. The covered materials included on such list shall meet the definition 1234 of compostable in paragraph (8) of subsection (a) of Code Section 12-8-110.1 and shall 1235 meet all of the following criteria:

1236 (1) The covered material type and form are regularly accepted in residential composting 1237 programs and collected by composting programs for jurisdictions that collectively 1238 encompass at least 60 percent of the population of this state; and 1239 (2) The covered material does not contain an additive of high concern identified in Code 1240 Section 12-8-110.15.

1241 (b) Not later than two years after the effective date of this article, the department shall 1242 provide a list of compostable covered materials to the PROs, which shall forward the list 1243 to all service providers and political subdivisions as relevant. Covered materials 1244 determined to be compostable in this state are required to be collected by service providers 1245 either directly contracted by a PRO or a public service provider receiving reimbursement 1246 from a PRO.

1247 (c) The department may add or remove covered materials to the compostable covered 1248 materials list every two years. PROs shall enact additions and removals from covered 1249 materials across this state within one year of notification by the department. In adding or 1250 removing covered materials to the compostable covered materials list, the department shall 1251 consider whether the covered material type and form will be accepted pursuant to a 1252 producer responsibility plan.

1253 12-8-110.14.

1254 (a) Each registered PRO shall annually fund and implement a reuse financial assistance 1255 program to reduce the negative environmental impacts of covered materials through reuse 1256 systems. The funded amount shall be:

1257 (1) At least $5 million beginning in the first year of implementation of the PRO's first 1258 accepted program plan and adjusted annually thereafter for inflation. The PRO shall use 1259 the Consumer Price Index for Urban Wage Earners and Clerical Workers to calculate the 1260 annual rate of inflation adjustment effective January 1 of each year; and 1261 (2) Sufficient to achieve the reuse and return rate targets and requirements established 1262 in Code Section 12-8-110.7. If, at any point, the department determines that the reuse 1263 and return rate targets or state-wide requirements are not met, each PRO shall increase 1264 annual contributions to and expenditures from the reuse financial assistance program. 1265 (b) Entities eligible for reuse financial assistance include, but are not limited to: 1266 (1) Government entities;

1267 (2) Tribal governments;

1268 (3) Nonprofit organizations; and

1269 (4) Private organizations.

1270 (c) In administering the reuse financial assistance program, the PROs shall solicit 1271 applications using an open and competitive process and shall select applications through 1272 an evaluation that considers criteria, including, but not limited to: 1273 (1) Environmental benefits of the activity;

1274 (2) Ability to scale and harmonize the activity; 1275 (3) Coordination with other proposed or funded activities by any PRO; 1276 (4) Cost-effectiveness of the activity; and

1277 (5) The needs of economically distressed or overburdened communities. 1278 (d) The PROs shall consult with the advisory board in determining the criteria in 1279 subsection (c) of this Code section, evaluating and selecting applications, and in 1280 administering the reuse financial assistance program. 1281 12-8-110.15.

1282 (a) As used in this Code section, the term:

1283 (1) 'Additive' means a substance which is intentionally added to covered materials to 1284 achieve a physical or chemical effect during manufacturing or in the final material. 1285 (2) 'Credible scientific evidence' means the results of a study, the experimental design 1286 and conduct of which have undergone independent scientific peer review, that are 1287 published in a peer reviewed journal or in a publication of an authoritative federal, state, 1288 or international governmental agency, including, but not limited to: 1289 (A) The United States Department of Health and Human Services; 1290 (B) The National Toxicology Program;

1291 (C) The United States Food and Drug Administration; 1292 (D) The United States Centers for Disease Control and Prevention; 1293 (E) The United States Environmental Protection Agency; 1294 (F) The World Health Organization; or

1295 (G) The European Union, European Chemicals Agency. 1296 (3) 'Incidental presence' means the presence of an additive as an unintended or undesired 1297 ingredient of a covered material at a concentration that is less than 100 parts per million 1298 by weight (0.01 percent), or a lower threshold as determined to be necessary to protect 1299 human health by the department.

1300 (4) 'Intentionally added' means the act of deliberately utilizing an additive in the 1301 formation of a covered material where its continued presence is desired in the final 1302 covered material to provide a specific characteristic, appearance, or quality. The use of 1303 an additive as a processing agent, mold release agent, or intermediate is considered 1304 intentional addition for the purposes of this article where the additive is detected in the 1305 final covered material. Such term does not include the use of postconsumer recycled 1306 content, where some portion of the postconsumer recycled content may contain amounts 1307 of the additive but is neither desired nor deliberate. 1308 (5) 'Manufacturing' means the physical or chemical modification of a material to produce 1309 covered materials.

1310 (6) 'Perfluoroalkyl and polyfluoroalkyl substances' or 'PFAS' means all members of the 1311 class of fluorinated organic chemicals containing at least one fully fluorinated carbon 1312 atom.

1313 (7) 'Persistent, bioaccumulative, and toxic' means substances meeting the criteria 1314 established in Section 1 of Annex XIII to the Registration, Evaluation, Authorisation and 1315 Restriction of Chemicals (REACH) Regulation of the European Union (EC) No 1316 1907/2006 of the European Parliament and of the Council of 18 December 2006, as 1317 amended, or its successor.

1318 (8) 'Persistent, mobile, and toxic' means substances meeting the criteria established in 1319 'REACH: Improvement of guidance and methods for the identification and assessment 1320 of PMT/vPvM substances: Final Report,' or its successor. 1321 (9) 'Phthalates' means all members of the class of organic chemicals that are esters of 1322 phthalic acid and that contain two carbon chains located in the ortho position. 1323 (b)(1) Not later than four years after the effective date of this article, a producer shall not 1324 sell, offer for sale or for promotional purposes, or distribute covered materials to which 1325 the following additives of high concern have been intentionally added during 1326 manufacturing or distribution in any amount greater than an incidental presence: 1327 (A) Lead;

1328 (B) Cadmium;

1329 (C) Mercury;

1330 (D) Hexavalent chromium;

1331 (E) Phthalates;

1332 (F) PFAS; and

1333 (G) Other additives of high concern as identified and prohibited by the department 1334 under this Code section.

1335 (2) No material used to replace an additive regulated by this article in a covered material 1336 may be used in a quantity or manner that creates a hazard as great as or greater than the 1337 hazard created by the additive regulated by this article, taking into account the factors in 1338 paragraph (2) of subsection (c) of this Code section. 1339 (c)(1) In accordance with the requirements of this Code section, the department shall 1340 periodically revise and publish a list of additives or groups of additives of high concern 1341 in covered materials.

1342 (2) An additive or group of additives may be included on the list of additives of high 1343 concern under this Code section only if:

1344 (A) The additive or group of additives has been identified by a governmental entity on 1345 the basis of credible scientific evidence as being: 1346 (i) A carcinogen;

1347 (ii) A reproductive or developmental toxicant;

1348 (iii) An endocrine disruptor;

1349 (iv) Persistent, bioaccumulative, and toxic; or

1350 (v) Persistent, mobile, and toxic; or

1351 (B) The department determines that there is credible scientific evidence that the 1352 additive or group of additives is a reproductive or developmental toxicant, endocrine 1353 disruptor, or carcinogen in humans or the environment. 1354 (3) The department in its periodic review of the list of additives of high concern 1355 published pursuant to this Code section shall remove from the list any additives or group 1356 of additives that no longer meets the criteria of paragraph (2) of this subsection and may 1357 add to the list of additives of high concern additional additives or groups of additives that 1358 meet the criteria of paragraph (2) of this subsection. 1359 (4) The department may consider the extent to which an additive or group of additives 1360 known to be used or present in covered materials is adequately regulated by the federal 1361 government or an agency of this state to reduce or prevent the same public health threats 1362 that would be the basis for addressing the additive under this Code section. 1363 12-8-110.16.

1364 Not later than five years after the effective date of this article and every year thereafter, the 1365 department shall submit a report to the Governor and to the chairpersons and ranking 1366 minority members of House Committee on Natural Resources and Environment and the 1367 Senate Natural Resources and the Environment Committee. The report shall: 1368 (1) Summarize the annual reports submitted to the department by all PROs; 1369 (2) Report on progress achieved in the previous year toward performance targets under 1370 subparagraph (a)(5)(G) of Code Section 12-8-110.5 and performance standards under 1371 Code Section 12-8-110.7;

1372 (3) Report on implementation of Code Section 12-8-110.15; 1373 (4) Summarize enforcement actions under Code Section 12-8-110.17; and 1374 (5) Contain other information regarding the performance of the PROs in implementing 1375 this article.

1376 12-8-110.17.

1377 (a) The department shall enforce this article as provided under this Code section. The 1378 department or the Attorney General shall first issue a corrective order before pursuing other 1379 enforcement actions.

1380 (b) The department may issue a notice of violation to, and impose an administrative civil 1381 penalty not to exceed $50,000.00 per day of violation on, any entity not in compliance with 1382 this article or any of the regulations which the department adopts to implement this article. 1383 (c) In the event that the department determines that a PRO no longer meets the 1384 requirements of this article or fails to implement and administer an approved producer 1385 responsibility plan in a manner that effectuates the purposes of this article, the department 1386 shall revoke its approval of the PRO and may approve additional PROs pursuant to Code 1387 Section 12-8-110.4.

1388 (d) If the department determines that a PRO or producer has not achieved the performance 1389 standards established pursuant to Code Section 12-8-110.7, the department shall, through 1390 a public process, adopt regulations that place requirements on the PRO or producers to 1391 achieve the performance standards specified in Code Section 12-8-110.7. 1392 12-8-110.18.

1393 The department is authorized to promulgate rules and regulations to implement the 1394 provisions of this article."

1395 SECTION 2.

1396 All laws and parts of laws in conflict with this Act are repealed.