HB1237: HB1237 Pollution Prevention and Producer Responsibility Act of 2026; enact

26 LC 28 0711ER House Bill 1237 By: Representatives Bell of the 75 th, Tran of the 80 th, Davis of the 87 th, Carter of the 93 rd, 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 waste1 management, so as to enact the "Pollution Prevention and Produc er Responsibility Act of2 2026"; to provide for definitions; to provide for the creation of a Producer Responsibility3 Advisory Board; to provide for its composition, duties, terms o f office, and operations; to4 provide for needs assessment studies; to provide for the contents and scope of such studies;5 to provide for the registration of producers of certain packaging and containers; to provide6 for producer responsibility programs; to provide for the scope and operation of such7 programs; to provide for the review and rejection or approval of such programs; to provide8 for certain fees; to provide for beverage container deposit return systems; to provide for the9 scope and operation of such systems; to provide for performance standards; to provide for10 reporting requirements; to provide for coordination plans; to p rovide for certain11 certifications; to provide for alternative collection programs; to provide for the development12 and publication and distribution of recyclable covered materials lists and approved recycling13 processes; to provide for the development and publication and distribution of compostable14 covered materials lists; to provide for a reuse financial assistance program; to provide for the15 reduction of toxins in covered materials; to provide for certai n reports; to provide for16 enforcement; to provide for rule making; to provide for related matters; to repeal conflicting17 laws; and for other purposes.18 H. B. 1237 - 1 - 26 LC 28 0711ER BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:19 SECTION 1.20 Chapter 8 of Title 12 of the Official Code of Georgia Annotated , relating to waste21 management, is amended by revising Article 4, which was previously reserved, as follows:22 "ARTICLE 423 12-8-110.24 This article shall be known and may be cited as the 'Pollution Prevention and Producer25 Responsibility Act of 2026.' Reserved.26 12-8-110.1.27 As used in this article, the term:28 (1) 'Advisory board' means the Producer Responsibility Advisor y Board established29 under Code Section 12-8-110.2.30 (2) 'Applicable refund value' means the value established unde r Code31 Section 12-8-110.6.32 (3) 'Beverage' means a drinkable liquid intended for human oral consumption. Such term33 does not include:34 (A) A drug regulated under the federal Food, Drug, and Cosmeti c Act, 21 U.S.C.35 Section 301, et seq.;36 (B) One hundred percent fluid milk;37 (C) Infant formula; or38 (D) A meal replacement liquid.39 (4) 'Beverage container' means a prepackaged container that:40 (A) Is designed to hold a beverage;41 H. B. 1237 - 2 - 26 LC 28 0711ER (B) Is made of any material, including glass, plastic, metal, paper, or a combination42 thereof; and43 (C) Has a volume which is not less than 50 milliliters, nor greater than three liters.44 (5) 'Beverage Producer Responsibility Organization' or 'beverage PRO' means a producer45 responsibility organization that is designated by a producer of beverage containers or46 group of producers of beverage containers to carry out the activities required of beverage47 producers by this article.48 (6) 'Brand' means a name, symbol, word, or mark that identifies a product and attributes49 the product and its components, including packaging, to the brand owner.50 (7) 'Brand owner' means a person or entity that owns or licenses a brand or that otherwise51 has rights to market a product under the brand, whether or not the brand's trademark is52 registered.53 (8) 'Compostable' means that the covered materials meet the re quirements of Code54 Section 12-8-110.13 and meet, and are labeled to reflect they meet, the criteria according55 to the Federal Trade Commission's Guides for Use of Environmental Marketing Claims56 at 16 C.F.R. Section 260.7 (Compostable Claims) and either:57 (A) Meet, and are labeled to reflect that they meet:58 (i) The American Society for Testing and Materials Standard Sp ecification for59 Labeling of Plastics Designed to be Aerobically Composted in Municipal or Industrial60 Facilities (D6400) or its successor; and61 (ii) The American Society for Testing and Materials Standard S pecification for62 Labeling of End Items that Incorporate Plastics and Polymers as Coatings or63 Additives with Paper and Other Substrates Designed to be Aerobically Composted in64 Municipal or Industrial Facilities (D6868) or its successor; or65 (B) Comprise only:66 (i) Wood without any coatings or additives; or67 (ii) Paper without any coatings or additives.68 H. B. 1237 - 3 - 26 LC 28 0711ER (9) 'Composting,' 'compost,' or 'composted' means the controll ed aerobic, biological69 decomposition of biodegradable materials or organic waste to yield a humus-like product.70 (10) 'Composting facility' means a facility that receives and composts materials into a71 humus-like product.72 (11) 'Composting rate' means the amount of covered material by type that is composted,73 divided by the total amount of th at covered material type sold, offered for sale, or74 distributed in the state.75 (12) 'Convenience standards' means:76 (A) That collection, recycling, and composting services for pa ckaging or paper77 products provided under a producer responsibility plan are:78 (i) At a minimum, as convenient as trash collection; and79 (ii) Not a reduced level of convenience or service quality tha t was provided to the80 covered entity before the producer responsibility plan was implemented; or81 (B) That beverage container redemption modalities meet or exce ed the convenience82 standards described in paragraph (2) of subsection (e) of Code Section 12-8-110.6.83 (13) 'Covered entity' means the following locations in this state:84 (A) Single-family and multi-family residences; and85 (B) Nonresidential locations identified in the needs assessmen t under Code86 Section 12-8-110.3, including public places, small businesses, food service locations,87 schools, hospitality locations, and state and local government buildings.88 (14) 'Covered material' means packaging, paper products, and beverage containers sold,89 offered for sale, or distributed in the state. Such term does not include:90 (A) Materials intended to be used for the long-term storage or protection of a durable91 product that is intended to transport, protect, or store the durable product on an ongoing92 basis, and that can be expected to be usable for that purpose for a period of at least five93 years; or94 H. B. 1237 - 4 - 26 LC 28 0711ER (B) Materials used to package pesticide products regulated by the Federal Insecticide,95 Fungicide, and Rodenticide Act, 7 U.S.C. Section 136, et seq., that are in direct contact96 with the regulated product.97 (15) 'Department' means the Department of Natural Resources.98 (16) 'End of life services' means:99 (A) Reuse, collection, recycling, and composting services for packaging and paper100 products; and101 (B) Reuse, collection, recycling, and redemption services for beverage containers.102 (17) 'End of life service costs' means the costs to conduct end of life services, including103 the cost of:104 (A) Administration of relevant end of life service programs;105 (B) Collecting and processing covered materials, removing and handling contaminants106 from covered materials at processing facilities, including, but not limited to, redemption107 facilities, composting facilities, and material recovery facilities, and preparing materials108 for responsible end markets;109 (C) Transporting covered materials to processing facilities, including, but not limited110 to, redemption facilities, composting facilities, and material recovery facilities;111 (D) Transporting contaminants for management or disposal;112 (E) Capital improvements to processing facilities, including, but not limited to,113 redemption facilities, composting facilities, and material recovery facilities; and114 (F) Education and outreach materials and activities.115 (18) 'Environmental justice area' means a Tribal area or census tract that, based on the116 most recent data published by the United States Census Bureau, meets one or more of the117 following criteria:118 (A) Forty percent or more of the area's total population is nonwhite;119 (B) Thirty-five percent or more of households in the area have an income that is at or120 below 200 percent of the federal poverty level;121 H. B. 1237 - 5 - 26 LC 28 0711ER (C) Forty percent or more of the population over the age of fi ve has limited English122 proficiency; or123 (D) The area is located in Indian Country, as defined in 18 U.S.C. Section 1151.124 (19) 'Household' means occupants of a single detached dwelling unit or occupants of a125 single dwelling unit in a multifamily housing development located in this state.126 (20) 'Living wage' means the minimum income necessary to allow a person working 40127 hours per week to afford food, housing, transportation, childcare, taxes, and other basic128 needs as estimated by the state.129 (21) 'Material recovery facility' means a facility that receiv es, separates, and sells or130 otherwise distributes postconsumer materials for recycling to responsible end markets.131 (22) 'Multifamily housing development' means a structure that contains more than one132 separate residential dwelling units and that is used or occupied, or intended to be used or133 occupied, in whole or in part, as the home or residence of one or more persons.134 (23) 'Packaging' means:135 (A) A material used as:136 (i) Primary packaging intended to provide an individual serving or unit of a product; 137 (ii) Secondary packaging intended to sell in bulk or display the product; or138 (iii) Tertiary packaging intended to protect the product during transport.139 (B) Packaging includes material that is:140 (i) Used to protect, contain, transport, or serve an item;141 (ii) Sold or supplied to consumers expressly for the purpose of protecting, containing,142 transporting, or serving items;143 (iii) Attached to an item or its container for the purpose of marketing or144 communicating information about the item;145 (iv) Supplied at the point of sale to facilitate the delivery of the item; or146 H. B. 1237 - 6 - 26 LC 28 0711ER (v) Supplied to or purchased by consumers expressly for the purpose of facilitating147 food or beverage consumption that is ordinarily discarded by co nsumers after a148 single-use or short-term use, whether or not it could be reused.149 (24) 'Packaging Producer Responsibility Organization' or 'packaging PRO' means a PRO150 that is designated by a packaging or paper producer or group of packaging or paper151 producers to carry out the activities required of packaging and paper producers by this152 article. A single packaging PRO can include both packaging and paper producers.153 (25) 'Paper product' means paper sold, offered for sale, or distributed, including, but not154 limited to, flyers, brochures, booklets, catalogues, magazines, copy paper, printing paper,155 unsolicited mail, and all other paper materials except for:156 (A) Bound books;157 (B) Conservation grade and archival grade paper;158 (C) Paper designed for use in building construction; and159 (D) Paper products that, by any common and foreseeable use, co uld reasonably be160 anticipated to become unsafe or unsanitary to handle.161 (26) 'Plastic' means a synthetic or semisynthetic material chemically synthesized by the162 polymerization of organic substances that can be shaped into various rigid and flexible163 forms and includes coatings and adhesives. Such term does not include natural rubber164 or naturally occurring polymers such as proteins or starches. Such term includes, and is165 not limited to:166 (A) Polyethylene terephthalate (PET);167 (B) High-density polyethylene (HDPE);168 (C) Polyvinyl chloride (PVC);169 (D) Low-density polyethylene (LDPE);170 (E) Polypropylene (PP);171 (F) Polycarbonate (PC);172 (G) Polystyrene (PS);173 H. B. 1237 - 7 - 26 LC 28 0711ER (H) Polylactic acid (PLA); and174 (I) Aliphatic biopolyesters, such as polyhydroxyalkanoate (PHA ) and175 polyhydroxybutyrate (PHB).176 (27) 'Postconsumer material' means material generated by households or by commercial177 and institutional facilities in their role as end users of the product which has been used178 for its intended purpose and discarded. This includes returns of material from the179 distribution chain.180 (28) 'Postconsumer recycled content' means the proportion of a covered material181 composed of postconsumer material, expressed as a percentage of the total weight of the182 covered material. Postconsumer recycled content shall be third -party certified when183 third-party certification is available for the material type and approved by the department184 under Code Section 12-8-110.10.185 (29) 'Processing' means to sort, segregate, break or flake, and clean covered material to186 prepare it to meet the specification for sale to a responsible end market.187 (30) 'Producer' means the following person or entity responsible for compliance with the188 requirements of this article for covered materials sold, offered for sale, or distributed in189 this state:190 (A) For packaging:191 (i) For items sold, offered for sale, or distributed in or with packaging at a physical192 retail location in this state:193 (I) If the item is sold, offered for sale, or distributed in or with packaging under the194 manufacturer's own brand or is sold, offered for sale, or distr ibuted in or with195 packaging that lack identification of a brand, the producer is the person or entity that196 manufactures the packaged item;197 (II) If there is no person or entity to which subdivision (I) of this division applies,198 the producer is the person or entity that is licensed to sell, offer for sale, or distribute199 to consumers in this state an item in or with packaging under the brand or trademark200 H. B. 1237 - 8 - 26 LC 28 0711ER used in a commercial enterprise, sold, offered for sale, or distributed in or into this201 state, whether or not the trademark is registered in this state;202 (III) If there is no person or entity to which subdivision (I) or (II) of this division203 applies, the producer is the brand owner of the item;204 (IV) If there is no person or entity described in subdivisions (I) through (III) of this205 division located in the United States, the producer is the person or entity that is the206 importer of record for the item into the United States for use i n a c o m m e r c i a l207 enterprise that sells, offers for sale, or distributes the item in this state; or208 (V) If there is no person or entity described in subdivisions (I) through (IV) of this209 division, the producer is the person that first distributes the item in or into this state;210 (ii) For items sold, offered for sale, or distributed in or with packaging in this state211 via e-commerce, remote sale, or distribution:212 (I) For packaging used to directly protect or to indirectly co ntain the item, the213 producer is the person or entity identified in division (i) of this subparagraph; and214 (II) For packaging used to ship the item or a group of items t o a consumer, the215 producer is the person or entity that packages and ships the pr oduct or group of216 products to the consumer; and217 (B) For beverage containers:218 (i) The producer is the brand owner responsible for the brand visible on the beverage219 container that is introduced, either physically or via e-commerce or remote sales, in220 this state;221 (ii) If there is no person or entity described in division (i) of this subparagraph222 located in the United States, the producer is the person or entity who is the importer223 of record for the beverage container into the United States for use in a commercial224 enterprise that sells, offers for sale, or distributes the item in this state; or225 H. B. 1237 - 9 - 26 LC 28 0711ER (iii) If there is no person or entity described in division (i) or (ii) of this subparagraph,226 the producer is the person that first distributes the beverage container in or into this227 state;228 (C) For all other packaging or beverage containers, the produc er of the packaging is229 the person or entity that first distributes the item in this state;230 (D) For paper products that are magazines, catalogues, telephone directories, or similar231 publications, the producer is the publisher;232 (E) For paper products not described in subparagraph (D) of th is paragraph, the233 producer is:234 (i) The person or entity that manufactures the paper product under the manufacturer's235 own brand;236 (ii) If there is no person or entity described in division (i) of this subparagraph, the237 producer is the person or entity that is the owner or licensee of a brand or trademark238 under which the paper product is used in a commercial enterpris e, sold, offered for239 sale, or distributed in this state, whether or not the trademark is registered in this state;240 (iii) If there is no person or entity described in division (i) or (ii) of this subparagraph,241 the producer is the brand owner of the paper product;242 (iv) If there is no person or entity described in division (i) , (ii), or (iii) of this243 subparagraph located in the United States, the producer is the person or entity that244 imports the paper product into the United States for use in a c ommercial enterprise245 that sells, offers for sale, or distributes the item in this state;246 (F) If the producer defined in subparagraphs (A) through (E) o f this paragraph is a247 business operated wholly or in part as a franchise, the producer is the franchisor, if that248 franchisor has franchisees that have a commercial presence within this state; and249 (G) The term 'producer' does not include a person or entity that:250 (i) Annually sells, offers for sale, distributes, or imports into this state less than one251 ton of covered products; and252 H. B. 1237 - 10 - 26 LC 28 0711ER (ii) Has a global gross revenue of less than $2 million for the person or entity's most253 recent fiscal year.254 (31) 'Producer Responsibility Organization' or 'PRO' means a nonprofit organization that255 qualifies for a tax exemption under Section 501(c)(3) of the Fe deral Internal Revenue256 Code of 1986 and is designated by a producer or group of produc ers to carry out the257 activities required of producers by this article. A PRO may fo rm to carry out the258 responsibilities of beverage producer responsibility organizations or packaging producer259 responsibility organizations, or both.260 (32) 'Producer responsibility plan' means a document describing the activities of a PRO261 to carry out the responsibilities of the PRO and producers under this article.262 (33) 'Program year' means January 1 through December 31 of a calendar year.263 (34) 'Public service provider' means a political subdivision that provides or that contracts264 or otherwise arranges with another party to provide end of life services for covered265 materials within its jurisdiction.266 (35) 'Recyclable' means that the covered materials meet the re quirements of Code267 Section 12-8-110.12 and can be sorted by entities that process recyclable materials268 generated in this state and have a consistently available respo nsible end market so that269 entities processing recycled feedstock are willing to purchase or otherwise arrange to270 accept that type of materials for use in the development of a new product.271 (36)(A) 'Recycling' or 'recycle' means the act of collecting a nd processing materials272 and returning them to, or maintaining them within, the economic mainstream in the273 form of recovered material for new, reused, or reconstituted products which meet the274 quality standards necessary to be used in the marketplace.275 (B) To be considered recycling, the process shall meet all of the following, as276 determined by the department:277 (i) Results in postconsumer recycled content material for new packaging or product278 applications, as certified by a third party approved by the department;279 H. B. 1237 - 11 - 26 LC 28 0711ER (ii) Does not include combustion, fuel production, or other forms of energy recovery280 of covered materials in processing or disposal;281 (iii) Displaces the use of virgin materials;282 (iv) Complies with all established federal and state laws and regulations governing283 greenhouse gas emissions and air and water quality standards; and284 (v) Sends covered materials to a responsible end market.285 (C) Recycling does not include:286 (i) Combustion;287 (ii) Fuel production;288 (iii) Other forms of energy recovery; or289 (iv) Disposal or disposition within the footprint of a landfill.290 (37) 'Recycling rate' means the amount of covered materials re cycled using approved291 processes determined to be recycling by the department pursuant to Code292 Section 12-8-110.12, by covered material type, in a plan year divided by the total amount293 of that covered material type sold, offered for sale, or distributed in this state by weight.294 (38) 'Redemption facility' means a specific area where individ uals may bring covered295 materials to place into material-specific receptacles for the purpose of reuse, recycling,296 or composting.297 (39) 'Redemption rate' means the amount of beverage containers accepted at redemption298 facilities in a plan year divided by the total amount of beverage containers sold, offered299 for sale, or distributed in this state.300 (40) 'Refillable' means covered materials designed to be refilled by consumers multiple301 times for the same or similar purpose in their original format, and that are sold, offered302 for sale, or distributed to consumers once for the duration of their usable life.303 (41) 'Reimbursement rates' means payments that are made to ser vice providers by a304 packaging PRO for end of life services provided under a producer responsibility plan and305 that are:306 H. B. 1237 - 12 - 26 LC 28 0711ER (A) Based on a formula approved by the department; and307 (B) Calculated on a per unit basis, such as per ton, per item, per household, or another308 unit of measurement.309 (42) 'Responsible end market' means a materials market that:310 (A) Recycles, composts, or otherwise recovers materials and disposes of contaminants311 in a manner that minimizes environmental harm and risks to public health and worker312 health and safety;313 (B) Complies with all applicable international treaties and federal, state, and local laws314 and regulations, including, but not limited to, all requisite l icensing and permit315 requirements and laws and regulations governing greenhouse gas emissions, air and316 water quality standards, trade regulation, and human rights and labor standards; and317 (C) Does not disproportionately burden environmental justice areas and low-income318 communities with negative human health and environmental impact s of pollution or319 other environmental hazards resulting from the operation of the end market.320 (43) 'Retailer' means any established person, corporation, partnership, business, facility,321 vendor, organization, or other entity that sells or provides me rchandise, goods, or322 materials directly to a customer.323 (44) 'Reusable' means covered materials designed to be recirculated multiple times for324 the same or similar purpose in their original format in a system for reuse, that are owned325 by producers or a third party, and are returned to producers or a third party after each use.326 (45) 'Reuse' means the return of reusable covered materials to the marketplace and the327 continued use of the reusable covered materials for their original intended purpose.328 (46) 'Reuse rate' means the amount of reusable covered materials returned to producers329 or a third party after use, divided by the total amount of covered materials sold, offered330 for sale, or distributed into the state, measured per item.331 (47) 'Service provider' means an entity that provides end of life services under a producer332 responsibility plan and includes public service providers.333 H. B. 1237 - 13 - 26 LC 28 0711ER (48) 'Single-use' means conventionally disposed of after a single use, including through334 recycling or composting, or not sufficiently durable or washable to be, or not intended to335 be, reusable or refillable.336 (49)(A) 'Source reduction' means the reduction in the amount o f covered material337 created by a producer relative to an established baseline.338 (B) Methods of source reduction include, but are not limited to:339 (i) Shifting to reusable or refillable covered materials;340 (ii) Eliminating unnecessary covered materials;341 (iii) Right-sizing, optimizing, or bulking of covered materials; or342 (iv) Concentrating the product to reduce covered material use.343 (C) The term 'source reduction' does not include:344 (i) Replacing a recyclable or compostable covered material with a nonrecyclable or345 noncompostable covered material or a covered material that is l ess likely to be346 recycled or composted; or347 (ii) Switching from virgin covered material to postconsumer recycled content.348 (50) 'Toxic substance' means a substance that is identified as an additive of high concern349 under Code Section 12-8-110.15.350 12-8-110.2.351 (a) The department shall establish within 120 days of the effective date of this article the352 Producer Responsibility Advisory Board to review all programs conducted by PROs under353 this article and to advise the department and the PROs regarding producer responsibility354 plans and operations of and improvements to programs.355 (b)(1) The advisory board shall consist of members appointed by the department for a356 term of four years, as follows:357 (A) Three representatives of political subdivisions that represent rural, suburban, and358 urban areas of the state;359 H. B. 1237 - 14 - 26 LC 28 0711ER (B) Two representatives of community based organizations representing the interests360 of groups in environmental justice areas;361 (C) One member representing material recovery facilities that process covered362 materials;363 (D) One member representing recycling service providers focuse d on recycling364 collection or a state-wide association representing such recycling service providers;365 (E) One member representing a composting facility that receive s source separated366 compostable covered materials for composting or a state-wide tr ade association that367 represents such facilities;368 (F) One member representing a nonprofit environmental organization;369 (G) One member with expertise in deposit return systems;370 (H) One member with expertise in reuse systems;371 (I) One member representing retailers or a retail association in this state; and372 (J) Representatives of approved PROs and the department who shall serve as nonvoting373 members.374 (2) On making appointments under paragraph (1) of this subsection, the department shall375 not appoint voting members who are members of the General Assem bly, registered376 lobbyists, or members of a PRO and shall endeavor to appoint members from all regions377 of the state.378 (3) The advisory board shall convene its initial meeting withi n six months of the379 effective date of this article at which time a chairperson and vice chairperson shall be380 elected by majority vote of the board for terms not to exceed two years.381 ( 4 ) T h e a d v i s o r y b o a r d s h a l l m e e t a t l e a s t f o u r t i m e s a y e a r and may meet more382 frequently at the request of the chairperson or a majority of the members of the board.383 (5) All advisory board meetings shall be open to the public.384 (6) The advisory board shall make decisions by majority vote of the board.385 (7) The advisory board may establish subcommittees.386 H. B. 1237 - 15 - 26 LC 28 0711ER (8) The department shall provide staff support to the advisory board and may contract387 with a third-party facilitator to assist in administering the activities of the advisory board. 388 The PROs shall reimburse the department for all direct and related costs of the advisory389 board.390 (9) Advisory board members shall be compensated as provided in the amount set forth391 in subsection (b) of Code Section 45-7-21 with reimbursement from the PROs.392 (10) The department shall assist the advisory board in develop ing policies and393 procedures governing the disclosure of actual or perceived conf licts of interest that394 advisory board members may have as a result of their employment or the financial395 holdings of themselves or of their family members. Each advisory board member shall396 be responsible for reviewing and complying with such conflict-o f-interest policies and397 procedures. An advisory board member shall disclose any instance of actual or perceived398 conflicts of interest at each meeting of the advisory board at which votes,399 recommendations, or other decisions are made by the advisory board.400 (c)(1) The advisory board shall:401 (A) Consult with the department regarding the scoping of the needs assessment under402 Code Section 12-8-110.3 and provide written comments on the final needs assessment403 within 60 days of receipt of the assessment;404 (B) Review and provide written comments to the PROs and the department on all new,405 updated, and revised producer responsibility plans; proposed pr oducer responsibility406 plan amendments; annual reports; and coordination plans within 60 days of receipt of407 such documents and before the documents are submitted by the PRO to the department;408 and409 (C) Consult with the department and review and provide written comments during any410 rule making to implement this article.411 (2) The advisory board may comment on program operations or pr opose amendments412 to producer responsibility plans to the department at any time. C o m m e n t s ,413 H. B. 1237 - 16 - 26 LC 28 0711ER recommendations, and proposed amendments shall be reviewed and considered by the414 department and the relevant PRO.415 (3) Comments, recommendations, and proposed amendments submitt ed to the416 department by the advisory board shall be posted publicly on the department website.417 (4) No later than June 30 of each even-numbered year, the advisory board shall submit418 to the House Committee on Natural Resources and Environment and the Senate Natural419 Resources and the Environment Committee a report that describes the work of the420 advisory board.421 12-8-110.3.422 (a) Not later than nine months after the effective date of this article, the department shall423 contract with an independent third party to conduct a state-wid e needs assessment to be424 completed not later than one year after the initiation of the contract that, at a minimum:425 (1) Inventories the infrastructure, capacity, funding level, a nd method and sources of426 financing of existing end of life services and supporting trans portation and processing427 systems for packaging and paper products operating in the state, and evaluates strategies428 needed to:429 (A) Maintain and improve operations of existing infrastructure;430 (B) Increase waste prevention and reduction, reuse, recycling, and composting rates431 for packaging and paper products;432 (C) Expand the availability and accessibility of end of life services for packaging and433 paper products to all residents of the state to meet or exceed convenience standards; and434 (D) Support public and private investment to meet performance standards under Code435 Section 12-8-110.7, increase market demand for recycled packaging and paper products436 and finished compost, and increase the share of packaging and paper products that are437 being reused through an established reuse system;438 H. B. 1237 - 17 - 26 LC 28 0711ER (2) Identifies the viability and robustness of markets for reuse of packaging and paper439 products and for recycled packaging and paper products and the degree to which these440 markets can be considered responsible end markets;441 (3) Identifies actions necessary to reduce the level of contamination of source-separated442 recyclable and compostable materials that include packaging and paper products collected443 for recycling and composting to reduce impacts of contamination on recycling and444 composting facilities;445 (4) Assesses the avai lability of end of life services provided at all residential covered446 entities in the state;447 (5) Assesses the availability, gaps, and costs associated with providing end of life448 services to nonresidential covered entities, with particular attention to small businesses,449 and identify which types and locations of nonresidential covere d entities could be450 provided with end of life services that would increase state-wi de reduction, reuse,451 recycling, and composting rates to meet the performance standar ds in Code452 Section 12-8-110.7 in a cost-effective manner;453 (6) Reviews existing consumer education strategies on source reduction, reuse, recycling,454 and composting of packaging and paper products in this state an d funding needed to455 implement education best practice strategies;456 (7) Identifies factors to be considered in developing reimburs ement rates to service457 providers for end of life services delivered under a producer r esponsibility plan,458 including:459 (A) Population size and density, including typical route length to collect packaging and460 paper products from covered entities;461 (B) Distance from covered entitie s to the nearest reuse facili ty, material recovery462 facility, or composting facility or to facilities for consolidation and transfer;463 (C) Distance to responsible end markets;464 (D) Equipment costs;465 H. B. 1237 - 18 - 26 LC 28 0711ER (E) Cost of living based on living wage in the region; and466 (F) Other factors that may contribute to regional or jurisdictional cost differences;467 (8) Identifies information to be considered in determining whether packaging or paper468 products are reusable, recyclable, or compostable, including its potential to meet quality469 standards necessary to be used in the marketplace;470 (9) Compiles information on the presence of toxic substances i n each packaging and471 paper product type and their potential impacts on consumers and the environment;472 (10) Identifies disparities in end of life services available to covered entities located in473 environmental justice areas and proposes recommendations to red uce or eliminate the474 disparities and meet or exceed convenience standards;475 (11) Proposes plans and metrics for how to measure source reduction, recycling, reuse,476 and composting;477 (12) Establishes current rates across the state for each packaging and paper product type,478 as applicable for each of the following:479 (A) Reuse;480 (B) Recycling;481 (C) Composting; and482 (D) Postconsumer recycled content;483 (13) Estimates the level of funding necessary to support end o f life services for484 packaging and paper products to meet the performance standards in Code485 Section 12-8-110.7;486 (14) Evaluates options for third-party certifications as descr ibed in Code487 Section 12-8-110.10; and488 (15) In the first needs assessment, establish a baseline for t he source reduction489 performance standard based on the amount of single-use plastic packaging that was sold,490 offered for sale, or distributed in this state in the calendar year following the effective491 date of this article.492 H. B. 1237 - 19 - 26 LC 28 0711ER (b) The first needs assessment shall be completed not later than one year and nine months493 after the effective date of this article.494 (c) The department shall ensure the needs assessment is updated every five years.495 (d) Subsequent needs assessments shall include updated informa tion on the topics496 specified in subsection (a) of this Code section as well as any additional information497 deemed necessary to meet the requirements of this article, as determined by the department,498 including, but not limited to, inclusion of beverage containers in future needs assessments.499 ( e ) T h e P R O s s h a l l r e i m b u r s e t h e d e p a r t m e n t f o r t h e c o s t o f c onducting the needs500 assessment according to Code Section 12-8-110.4, and costs for updated needs assessments501 shall be assigned to PROs using the process set forth under sub section (f) of Code502 Section 12-8-110.4.503 12-8-110.4.504 (a) Not later than one year after the effective date of this a rticle, no producer shall sell,505 offer for sale, or distribute packaging or paper products in this state unless the producer is506 registered with a packaging PRO that is approved pursuant to th is Code section or has507 applied to independently participate in a producer responsibility plan under paragraph (3)508 of subsection (c) of this Code section.509 (b) Not later than one year after the effective date of this a rticle, no producer shall sell,510 offer for sale, or distribute beverage containers in this state unless the producer is registered511 with the beverage PRO that is approved pursuant to this Code section.512 (c)(1) Not later than nine months after the effective date of this article, the department513 shall select a single packaging PRO and a single beverage PRO to implement activities514 under this article. To be selected, a PRO shall:515 (A) Submit an application following a procedure established by the department;516 (B) Be an independent nonprofit organization that qualifies for a tax exemption under517 Section 501(c)(3) of the Federal Internal Revenue Code of 1986;518 H. B. 1237 - 20 - 26 LC 28 0711ER (C) Have a governing board that represents the diversity of covered materials placed519 on the market by those entities, and of producers in terms of size; and520 (D) Have adequate financial responsibility and financial contr ols in place to ensure521 proper management of funds.522 (2) A single PRO may be formed to perform the duties of both a packaging PRO and523 beverage PRO at the department's discretion if the PRO agrees t o comply with all524 requirements and obligations applicable to both a packaging PRO and beverage PRO as525 established in this article.526 (3) A producer of packaging and paper products may comply with t h i s a r t i c l e527 individually without participating in a PRO if the producer can demonstrate to the528 department, and the department determines at its sole discretio n, that the producer can529 demonstrate a recycling, reuse, or composting rate of 65 percen t for three consecutive530 years prior to their application, and on and after that date demonstrates a recycling, reuse,531 or composting rate at or over 70 percent annually.532 (4) A producer who chooses to comply with this article individually under paragraph (3)533 of this subsection shall assume individual responsibility for c omplying with all534 requirements and obligations applicable to a packaging PRO as outlined in this article.535 (5) After the expiration of the first packaging producer respo nsibility plan and in536 consultation with the advisory board, the department may approv e applications from537 additional organizations to serve as a packaging PRO if the department determines that538 additional packaging PROs would be beneficial in satisfying the requirements of this539 article and that the applying packaging PRO meets the requirements of this Code section.540 (6) If the department approves more than one packaging PRO under paragraph (5) of this541 subsection, producers of packaging and paper products shall choose one packaging PRO542 with which to register, unless they independently participate i n an approved producer543 responsibility plan under paragraph (3) of this subsection.544 H. B. 1237 - 21 - 26 LC 28 0711ER (d)(1) Not later than nine months after the effective date of this article, the department545 shall provide written notice to the PROs of the preregistration fee to be paid by each,546 which shall be calculated as follows:547 (A) For the packaging PRO, the department's estimate of the co st of conducting the548 needs assessment required under Code Section 12-8-110.3 and the department's cost to549 administer this article during the period before the initial registration of the PRO with550 regard to packaging and paper products; and551 (B) For the beverage PRO, the department's cost to administer this article during the552 period before the initial registration of the PRO with regard to beverage containers.553 (2) Within 90 days of receipt of the notice from the department under paragraph (1) of554 this subsection, each PRO shall remit payment for those costs in full to the department.555 (e) Not later than July 1 of each year after its initial selection under subsection (c) of this556 Code section, each PRO shall register with the department by submitting the following:557 (1) Contact information for a person responsible for implementing the PRO's producer558 responsibility plan;559 (2) A list of all producers participating in the PRO and, for each producer, a list of all560 brands of the producer's covered materials sold, offered for sa le, or distributed in this561 state;562 (3) Certification that the PRO has written agreements with each producer, which shall563 be made available to the department upon request, stating that the PRO is the producer's564 agent with respect to fulfilling the responsibilities of producers required under this article565 and that the producer pledges to comply with those provisions;566 (4) A list of current board members and the executive director if different than the person567 responsible for implementing the producer responsibility plan; and568 (5) Payment of the annual fee required under this Code section.569 (f)(1) Not later than March 31 of each year, the department sh all notify each PRO in570 writing of the amount of the fee for the following year to be p aid with their annual571 H. B. 1237 - 22 - 26 LC 28 0711ER registration under subsection (e) of this Code section, which s hall not exceed the572 department's estimate of the costs required to:573 (A) Administer, implement, and enforce this article, including staff costs;574 (B) Rule making to implement this article, if applicable;575 (C) Provide reimbursement for staffing for the advisory board; and576 (D) Conduct a needs assessment under Code Section 12-8-110.3.577 (2) In setting the annual fee for each PRO, the department shall develop and implement578 a process to allocate costs to each PRO proportional to the cos ts associated with that579 PRO, including costs for future needs assessments.580 (3) The department shall develop and implement a process to reconcile the fees paid by581 a PRO under this Code section with the actual costs incurred by the department, by means582 of credits or refunds to or additional payments required of a PRO, as applicable.583 (g)(1) A PRO is responsible for compliance with this Code sect ion, including the584 preparation and implementation of a producer responsibility pla n, the achievement of585 performance standards specified in Code Section 12-8-110.7, and the preparation and586 submission to the department of annual reports.587 (2) At least 90 days before the following items are submitted to the department, a PRO588 shall submit to the advisory board for review and comment:589 (A) All new, updated, and revised producer responsibility plan s and proposed590 amendments; and591 (B) All annual reports.592 (3) A PRO shall respond in writing to written comments made by the advisory board on593 all new, updated, and revised producer responsibility plans, proposed amendments, and594 annual reports and shall justify why any recommendations made in the advisory board's595 comments were not incorporated into the applicable document.596 (4) A PRO shall maintain a website that uses best practices fo r accessibility that597 contains:598 H. B. 1237 - 23 - 26 LC 28 0711ER (A) Information regarding a process that members of the public can use to contact the599 PRO with questions;600 (B) The draft and approved producer responsibility plan and any draft and approved601 amendments;602 (C) The lists of recyclable and compostable covered materials developed by the603 department under Code Sections 12-8-110.12 and 12-8-110.13;604 (D) The most recent and all past needs assessments, as applicable;605 (E) Annual reports filed by the PRO;606 (F) The coordination plan developed under Code Section 12-8-110.9;607 (G) A link to administrative rules implementing this Code section; and608 (H) Comments of the advisory board on the producer responsibil ity plan, proposed609 amendments, and annual plan documents and the responses of the PRO to those610 comments.611 (5) In addition to the requirements in paragraph (4) of this s ubsection, a website612 maintained by a packaging PRO shall contain a directory of all service providers613 operating under the producer responsibility plan, grouped by lo cation or political614 subdivision, and how to request service.615 (6) In addition to the requirements in paragraph (4) of this C ode section, a website616 maintained by the beverage PRO shall contain a list and map of all redemption facilities617 and what redemption modalities are available at each location.618 (7) A PRO shall notify the department within 30 days if a change is made to the contact619 information for a person responsible for implementing the producer responsibility plan,620 or a change to the board members.621 12-8-110.5.622 (a)(1) Each PRO shall submit a producer responsibility plan to the department describing623 the proposed operation of programs to fulfill the requirements of this article.624 H. B. 1237 - 24 - 26 LC 28 0711ER (2) For the packaging PRO selected under paragraph (1) of subs ection (c) of Code625 Section 12-8-110.4, the producer responsibility plan shall be submitted to the department626 not later than 30 months after the effective date of this artic le and every five years627 thereafter.628 (3) For additional approved packaging PROs, producer responsib ility plans shall be629 submitted following a process and timeline to be determined by the department, including630 review by the advisory board under subparagraph (c)(1)(B) of Code Section 12-8-110.2631 and paragraphs (2) and (3) of subsection (g) of Code Section 12-8-110.4.632 (4) For the beverage PRO selected under paragraph (1) of subse ction (c) of Code633 Section 12-8-110.4, the producer responsibility plan shall be submitted to the department634 not later than 18 months after the effective date of this artic le and every five years635 thereafter.636 (5) A producer responsibility plan shall describe activities to be undertaken during the637 next five program years and shall, at a minimum:638 (A) Describe how the PRO and participating producers will meet the performance639 standards described in Code Section 12-8-110.7;640 (B) Expand end of life services for covered materials for cove red entities, including641 how they will meet or exceed convenience standards;642 (C) Summarize consultations held with the advisory board and other stakeholders to643 provide input on the producer responsibility plan, a list of recommendations that were644 incorporated into the producer responsibility plan as a result, and a list of rejected645 recommendations that includes the reasons for rejection;646 (D) Describe how the program uses and interacts with existing end of life services and647 service providers;648 (E) Describe expanded and improved operations specifically designed to ensure that649 the performance targets under subparagraph (G) of this paragrap h and performance650 standards under Code Section 12-8-110.7 are met;651 H. B. 1237 - 25 - 26 LC 28 0711ER (F) Describe the viability of available responsible end markets and what improvements652 are needed to markets to improve program performance and ensure that performance653 targets and standards are met;654 (G) Propose annual performance targets for each covered material type that will ensure655 compliance with the performance standards set forth in Code Section 12-8-110.7 and656 describe how the PRO will measure progress against those performance targets;657 (H) Include a proposed budget for each of the next five program years;658 (I) Include proposed producer fees in a fee schedule by material category and describe659 the process used to calculate producer fees, including how the fees reflect the660 requirements of this article;661 (J) Certify that the PRO shall treat data submitted by service providers as nonpublic662 data;663 (K) Describe activities the PRO shall conduct to ensure recyclers and composters of664 covered materials send covered materials to responsible end markets;665 (L) Describe proposed campaigns to educate consumers about how to manage covered666 materials in an environmentally sound manner and how to access end of life services667 for covered materials, and describe how these campaigns will wo rk with consumer668 education provided by nonprofit organizations, local governments, service providers,669 and other organizations;670 (M) Describe how the PRO will assist producers in improving pr oduct labels as a671 means of informing consumers about environmentally sound management of covered672 materials, including how to access end of life services;673 (N) Describe how the PRO will assist producers in product redesign, source reduction,674 compliance with Code Section 12-8-110.15, and other necessary actions that support675 overall performance targets and standards; and676 (O) Include a plan for adopting third-party certifications app roved pursuant to Code677 Section 12-8-110.10, as applicable.678 H. B. 1237 - 26 - 26 LC 28 0711ER (6) In addition to the requirements of paragraph (5) of this s ubsection, a producer679 responsibility plan submitted by a packaging PRO shall, at a minimum:680 (A) Include a source reduction plan designed to meet the requi rements of Code681 Section 12-8-110.7 that describes, at a minimum:682 (i) How the PRO will collect individual source reduction plans from participating683 producers that include:684 (I) The amount of plastic packaging the producer plans to source reduce to meet the685 performance standards in subsection (a) of this Code section, including a description686 of how the producer plans to achieve the source reduction; and687 (II) Other information as determined necessary by the PRO to achieve the source688 reduction performance standard and reporting requirements;689 (ii) How the PRO will aggregate individual producer source red uction plans to690 achieve the performance standard in Code Section 12-8-110.7;691 (iii) How the PRO will ensure participating producers are maki ng appropriate692 progress to achieve their planned source reduction; and693 (iv) To ensure equity in the market, how the PRO will require a new participating694 producer or a producer that introduces plastic packaging materi al that is new to the695 producer subsequent to the approval of the PRO's plan to optimize and right size the696 plastic packaging, including through the use of malus fees;697 (B) Describe how the PRO will prioritize the use of existing service providers pursuant698 to subsection (d) of this Code section;699 (C) Include a reimbursement formula and a schedule of reimbursement rates for service700 providers that elect to participate in the program and a description of how the formula701 and schedule were developed;702 (D) Include a list of packaging and paper products designated for collection and the703 method of collection to be used for each;704 (E) Describe how reimbursements will be distributed;705 H. B. 1237 - 27 - 26 LC 28 0711ER (F) Propose a dispute resolution process for disputes regarding reimbursements;706 (G) Include terms and conditions for service agreements with s ervice providers and707 templates of the service agreements; and708 (H) Describe how the PRO will work with service providers to increase postconsumer709 recycled content in trash, recycling, and composting carts util ized by PRO funded710 programs.711 (7) In addition to the requirements of paragraph (5) of this s ubsection, a producer712 responsibility plan submitted by a beverage PRO shall, at a minimum:713 (A) Include a plan for beverage container redemption and processing mechanisms that714 provide equitable access that meets or exceeds the convenience standards in715 paragraph (2) of subsection (e) of Code Section 12-8-110.6 across this state;716 (B) Describe how the beverage PRO will operate redemption faci lities or enter into717 agreements with redemption facility operators to meet or exceed the convenience718 standards in paragraph (2) of subsection (e) of Code Section 12-8-110.6;719 (C) Describe how the beverage PRO will make payments to material recovery facilities720 or a packaging PRO, as applicable, for beverage containers proc essed in material721 recovery facilities pursuant to paragraph (4) of subsection (g) of Code722 Section 12-8-110.6 and paragraph (2) of subsection (a) of Code Section 12-8-110.9; and723 (D) Include a methodology to determine the average amount of redeemable beverage724 containers per ton of material recycled to be used in calculati ng the payments in725 subparagraph (C) of this paragraph, which may include requirements for standardized726 measurement of beverage containers that enter material recovery facilities.727 (8) The department shall review a producer responsibility plan and approve, modify, or728 reject it within 60 days of receipt, providing reasons for modi fication or rejection in729 writing to the PRO. A PRO shall submit a revised producer resp onsibility plan, if730 necessary, within 60 days of receiving the department's decision. The department shall731 review a revised producer responsibility plan within 45 days of receipt. The department732 H. B. 1237 - 28 - 26 LC 28 0711ER may require submission of additional revised producer responsibility plans until a revised733 producer responsibility plan is approved.734 (9) A PRO may file a proposed amendment to the producer responsibility plan with the735 department at any time. The department, with recommendations from the advisory board,736 may approve, modify, or reject the proposed amendment. A PRO s hall not change737 operations under an approved producer responsibility plan witho ut the department's738 written approval.739 (10) The department may require amending a producer responsibility plan if the advisory740 board petitions the department to request an amendment and the department determines741 that an amendment is necessary to ensure that a PRO maintains p rogress to meet742 performance targets under subparagraph (a)(5)(G) of Code Sectio n 12-8-110.5 and743 performance standards under Code Section 12-8-110.7 and the goa ls for the producer744 responsibility plan. A PRO shall address any comments and feed back and shall list745 rejected recommendations and the reasons for rejection during the amendment approval746 process.747 (11) Within 30 calendar days after approval of a producer resp onsibility plan or748 amendments by the department, a PRO shall implement the approve d producer749 responsibility plan and post the plan on the PRO's website.750 (b)(1) A PRO shall collect fees from producers sufficient to f ulfill the responsibilities751 under this article, including:752 (A) The annual fee required under Code Section 12-8-110.4;753 (B) Fees from producers of plastic covered materials as requir ed to fund the reuse754 financial assistant program pursuant to Code Section 12-8-110.14;755 (C) Costs to implement the producer responsibility plan; and756 (D) Establishment and maintenance of a financial reserve that is sufficient to operate757 the program in a fiscally prudent and responsible manner.758 (2) Fees for producers shall be structured considering the following:759 H. B. 1237 - 29 - 26 LC 28 0711ER (A) For all PROs:760 (i) Base fees that are based on the total amount of covered material by material type761 each producer sells, offers for sale, or distributes in this state in the prior program year762 calculated on a per unit basis, such as per ton, per item, or a nother unit of763 measurement and the cost for end of life services for those covered materials;764 (ii) Prioritize reuse by charging fees for covered materials that are managed through765 a reuse system only once;766 (iii) Increased or decreased fees to incentivize using materials and design attributes767 that reduce the environmental and human health impacts of covered materials, by the768 following methods in order of priority:769 (I) Eliminating the presence of toxic substances;770 (II) Reducing the amount of packaging per individual covered m aterial that is771 necessary to efficiently deliver a product without damage or spoilage and without772 reducing its ability to be recycled;773 (III) Increasing the percentage of covered materials managed in a reuse system;774 (IV) Enhancing the recyclability of covered materials; and775 (V) Increasing the proportion of postconsumer material used to produce covered776 materials; and777 (iv) Increased or decreased fees as necessary to incentivize producers to achieve the778 performance targets under subparagraph (a)(5)(G) of Code Sectio n 12-8-110.5 and779 performance standards under Code Section 12-8-110.7 for producers and the PRO as780 a whole;781 (B) In addition to the requirements in subparagraph (A) of this paragraph, a packaging782 PRO shall:783 (i) To the extent possible, establish a fee schedule that is consistent with similar fees784 being collected in other states with similar requirements for producers; and785 H. B. 1237 - 30 - 26 LC 28 0711ER (ii) Collect revenues to be used for and that are sufficient t o pay in full786 reimbursements to service providers for end of life service cos ts incurred under a787 producer responsibility plan approved by the department, includ ing the cost of788 ensuring all employees working at facilities to collect, proces s, and aggregate789 packaging and paper products are paid a living wage, receive he alth benefits, and790 have strong labor and work safety practices; and791 (C) In addition to the requirements in subparagraph (A) of this paragraph, the beverage792 PRO shall:793 (i) Collect revenues to be used for and that are sufficient to pay in full:794 (I) The cost of collecting and processing each beverage container type;795 (II) The cost of ensuring all employees working at facilities to redeem, collect,796 process, and aggregate beverage containers are paid a living wa ge, receive health797 benefits, and have strong labor and work safety practices;798 (III) The set payments to material recovery facilities and red emption facilities as799 required by subsection (g) of Code Section 12-8-110.6 and parag raph (2) of800 subsection (a) of Code Section 12-8-110.9; and801 (IV) Any other responsibilities of the beverage PRO under Code802 Section 12-8-110.6; and803 (ii) With the revenue from the sale of redeemed beverage conta iners, credit each804 beverage PRO member against the fee charged under this subsection based on:805 (I) The revenue generated from the sale of each beverage container type; and806 (II) The percentage of each beverage container type that a beverage PRO member807 distributes or sells in this state.808 (3) Fees collected under this Code section shall not be used for costs associated with:809 (A) An administrative civil penalty pursuant to this article;810 (B) Litigation between the PRO or a participating producer and the state;811 (C) Lobbying by or on behalf of a PRO or any of its members; or812 H. B. 1237 - 31 - 26 LC 28 0711ER (D) Subsidizing, incentivizing or otherwise supporting inciner ation or other813 technologies that do not meet the definition of recycling pursuant to paragraph (36) of814 subsection (a) of Code Section 12-8-110.1.815 (4) Any fees collected under this Code section in excess of th e costs identified in816 paragraph (1) of this subsection shall be reinvested to improve end of life services and817 consumer education.818 (5) No retailer of covered materials or products packaged in c overed materials shall819 charge a point-of-sale or point-o f-collection fee to a consumer for services provided820 under a producer responsibility plan, unless the fee is a deposit that is made in connection821 with a product's reuse or recycling and that will be returned to the consumer.822 (c) Each PRO, in collaboration with and after consulting with the department, political823 subdivisions, and the advisory board, as well as service providers and retailers as relevant,824 shall:825 (1) Develop and disseminate easy-to-understand, culturally res ponsive materials826 designed to educate covered entities in multiple languages regarding the management of827 covered materials through end of life services;828 (2) Conduct or fund others to conduct state-wide and local cam paigns promoting829 awareness of how covered entities can conveniently access end o f life services for830 covered materials; and831 (3) Disseminate education and outreach materials to the department, service providers,832 retailers, community organizations, and political subdivisions as relevant.833 (d)(1) During the term of the initial packaging producer responsibility plan approved by834 the department, a packaging PRO shall prioritize contracting wi th existing service835 providers in this state through a transparent, open, and fair bidding process for end of life836 services for packaging and paper products at service volumes that are no less than those837 delivered by the service providers as of the effective date of this article, so long as the838 service provider meets the requirements under paragraph (5) of this subsection and is able839 H. B. 1237 - 32 - 26 LC 28 0711ER to meet operating standards necessary for the PRO to maintain progress toward meeting840 performance targets under subparagraph (a)(5)(G) of Code Sectio n 12-8-110.5 and841 performance standards under Code Section 12-8-110.7.842 (2) Paragraph (1) of this subsection shall apply to:843 (A) Service providers that provide end of life services for covered entities; and844 (B) Service providers that process packaging and paper products.845 (3) A packaging PRO shall contract with service providers identified in paragraph (2) of846 this subsection to conduct services identified in paragraph (2) of this subsection. The847 terms and conditions of service shall be established under a service agreement between848 both parties and shall include a reimbursement rate for services that is based on a formula849 described in the approved producer responsibility plan as required by this Code section,850 that:851 (A) Incorporates relevant cost information identified by the n eeds assessment852 conducted under Code Section 12-8-110.3; and853 (B) Reflects conditions that affect end of life service and pr ocessing costs in the854 jurisdiction in which the services are provided, including, but not limited to:855 (i) The number and size of covered entities by location type;856 (ii) Population density; and857 (iii) Collections methods employed.858 (4) A packaging PRO shall use open, competitive, and fair procurement practices when859 entering into contracts with service providers.860 (5) Contracts under this subsection shall require that service providers:861 (A) Have strong labor standards and work safety practices, including, but not limited862 to, safety programs, health benefits, and living wages;863 (B) Meet established operating standards, such as capture rates, residual rates, and bale864 quality; and865 (C) Demonstrate that covered materials are sent to responsible end markets.866 H. B. 1237 - 33 - 26 LC 28 0711ER (6) The end of life services delivered by a packaging PRO unde r a producer867 responsibility plan shall not reduce the level of convenience or service quality that was868 provided to any covered entity before the producer responsibility plan was implemented.869 (7) Nothing in this Code section shall require a local governm ent to operate under a870 producer responsibility plan, nor shall it restrict the authori ty of a local government to871 provide waste management services to residents or to contract with any entity to provide872 waste management services.873 (8) If there is not a public service provider or a public serv ice provider elects not to874 operate under the packaging producer responsibility plan or organize and contract with875 a private service provider, it is the responsibility of the packaging PRO to contract with876 a private service provider to provide end of life services to all covered entities.877 (9) A local government providing services to covered entities shall provide at least a878 one-year advance notice to the PRO if the local government will cease to coordinate end879 of life services to covered entities.880 12-8-110.6.881 (a)(1) All beverage containers that are made of 90 percent or more aluminum, steel,882 glass, HDPE, PP, or PET and are sold, offered for sale, or distributed in this state shall883 have the applicable refund value pursuant to subsection (b) of this Code section not later884 than two years after the effective date of this article.885 (2) All beverage containers that are sold, offered for sale, or distributed in this state shall886 have the applicable refund value pursuant to subsection (b) of this Code section not later887 than three years after the effective date of this article.888 (b)(1) Not later than two years after the effective date of th is article, the applicable889 refund value shall be 10¢.890 (2) If the beverage PRO's redemption rate does not reach the r edemption performance891 standards as required under paragraph (1) of subsection (g) of Code Section 21-8-110.7,892 H. B. 1237 - 34 - 26 LC 28 0711ER then the applicable refund value for every beverage container s old, offered for sale, or893 distributed in this state shall increase to 15¢ for each bevera ge container, and the894 beverage PRO shall conduct a study to determine whether any education or convenience895 factors of the plan need to be strengthened.896 (c)(1) A producer of a beverage container that is sold, offered for sale, or distributed in897 this state shall clearly display on the top or side of the beverage container:898 (A) The abbreviation 'RV,' which indicates the container has a refund value;899 (B) The abbreviation of the state; and900 (C) The applicable refund value.901 (2) A producer of a beverage container that is sold, offered for sale, or distributed in this902 state may include a barcode or unique code verification on the beverage container to903 allow for automated identification.904 (d) It is unlawful to redeem a beverage container in this state that was not sold, offered for905 sale, or distributed to a consumer in this state.906 (e)(1) The beverage PRO shall offer, at a minimum, the following modalities of beverage907 container redemption in this state:908 (A) Bag drop programs that use standard bags that allow for mu ltiple beverage909 containers to be redeemed at redemption facilities; and910 (B) Individual container redemption, including convenient opti ons for high-volume911 redemption without the use of a standard bag.912 (2) The beverage PRO shall ensure that the redemption modaliti es in paragraph (1) of913 this subsection for beverage containers meet or exceed the foll owing convenience914 standards:915 (A) All consumers who pay a deposit have reasonably convenient opportunities to916 redeem, including access to redemption facilities that provide for cash redemption;917 (B) Redemption options should be as convenient as beverage purchase options;918 H. B. 1237 - 35 - 26 LC 28 0711ER (C) Access should be appropriately convenient and equitable in both urban and rural919 areas; and920 (D) All redemption locations, including retail locations and other redemption facilities,921 shall collect all beverage containers with applicable refund va lue pursuant to922 subsection (f) of this Code section.923 (3) A retail establishment may choose to serve as a redemption facility or as the site of924 a collection event, or both, through mutual agreement with the beverage PRO.925 (4) The department shall use the following criteria to evaluate whether the requirements926 of paragraph (2) of this subsection are met:927 (A) The proximity of redemption locations to the volume of beverage sales in an area;928 (B) Access in rural counties that does not require additional vehicle miles traveled;929 (C) Access in urban areas builds on existing convenience;930 (D) Access is provided in economically strained and underserved communities;931 (E) The number and geographic distribution of high-volume redemption opportunities;932 and933 (F) Redemption options shall not disproportionately burden underserved communities934 or populations.935 (5) In the event that the beverage PRO does not achieve the co nvenience standards in936 paragraph (2) of this subsection as evaluated by the department pursuant to paragraph (4)937 of this subsection, the department shall engage in rulemaking to achieve the convenience938 standards in paragraph (2) of this subsection.939 (6) If the standard bags for a bag drop program under subparagraph (A) of paragraph (1)940 of this subsection are made of plastic film, the beverage PRO shall:941 (A) Ensure that the bags have a minimum of 50 percent postcons umer recycled942 content;943 (B) Demonstrate, upon request of the department, that the waste film from the bags is944 being recycled at responsible end markets; and945 H. B. 1237 - 36 - 26 LC 28 0711ER (C) Include instructions on the bag for how the bag should be utilized and recycled946 through a bag drop program.947 (f) Excluding the material recovery facility and redemption fa cility payments in948 subsection (g) of this Code section, the beverage PRO or a rede mption facility operator949 acting pursuant to an agreement with the beverage PRO is not required to pay refunds on:950 (1) A beverage container that:951 (A) Visibly contains or is contaminated by a substance other than water, residue of the952 original contents, or ordinary dust;953 (B) Is crushed or broken; or954 (C) Is damaged to the extent that the brand appearing on the c ontainer cannot be955 identified;956 (2) A beverage container that the beverage PRO or redemption f acility operator has957 reasonable grounds to believe was bought in another state; or958 (3) A beverage container for which the beverage PRO or redemption facility operator has959 reasonable grounds to believe a refund has already been given.960 (g)(1) On a monthly basis, operators of material recovery faci lities shall submit to the961 beverage PRO the number of tons of beverage containers the faci lity processed in the962 previous month.963 (2) On a monthly basis, operators of redemption facilities shall submit to the beverage964 PRO the number of beverage containers processed by the facility in the previous month.965 (3) Starting after the first full month that beverage containers are sold, offered for sale,966 or distributed in this state with the applicable refund value, the beverage PRO shall make967 a monthly payment directly to each redemption facility operator that is based on the data968 submitted by the redemption facility operators under paragraph (2) of this subsection.969 (4) Starting after the first full month that beverage containers are sold, offered for sale,970 or distributed in this state with the applicable refund value and until the coordination plan971 in Code Section 12-8-110.9 is approved by the department, the beverage PRO shall make972 H. B. 1237 - 37 - 26 LC 28 0711ER a monthly payment directly to each material recovery facility t hat processes beverage973 containers that is based on the data submitted by the redemption facility operators under974 paragraph (1) of this subsection.975 (5) The monthly payment required in paragraph (4) of this subs ection to material976 recovery facilities shall reflect a payment of at least 50 percent of the applicable refund977 value for each beverage container that the material recovery facility processes based on978 the methodology established in subparagraph (a)(7)(D) of Code Section 12-8-110.5.979 (6) The beverage PRO may conduct two audits per calendar year on the quality and980 quantity of the redemption facility or material recovery facilities' material upon request981 by the beverage PRO and at the beverage PRO's expense.982 (h) The beverage PRO shall pay for:983 (1) Any beverage container redemption or processing mechanism or self-service kiosk984 that the beverage PRO installs, services, and operates;985 (2) Any facilities in this state necessary to efficiently aggregate and process the material986 collected at redemption locations;987 (3) Reasonable costs incurred by redemption facility operators;988 (4) A credit to consumers for the cost of the bags that are processed through the beverage989 PRO's bag drop program;990 (5) The material recovery facility and redemption facility pay ments under this Code991 section and paragraph (2) of subsection (a) of Code Section 12-8-110.9; and992 (6) Necessary investments and improvements to provide services to or enhance the993 redemption experience of diverse or low-income consumers redeem ing beverage994 containers.995 (i) The beverage PRO shall use any applicable refund value tha t is not returned to the996 consumer for any of the following purposes:997 (1) Education and outreach activities to encourage redemption activity;998 (2) Increasing the number of redemption facilities; or999 H. B. 1237 - 38 - 26 LC 28 0711ER (3) Operation of the redemption system.1000 12-8-110.7.1001 (a)(1) Each packaging PRO shall propose performance standards based on the needs1002 assessment that meet the state-wide requirements in subsection (f) of this Code section.1003 (2) Performance targets shall be proposed in the PRO plan. Pe rformance targets shall1004 include:1005 (A) Reuse rates;1006 (B) Return rates;1007 (C) Recycling rates;1008 (D) Composting rates;1009 (E) Plastic source reduction; and1010 (F) Postconsumer recycled content requirements by covered material type.1011 (b)(1) Beginning the first month after beverage containers are sold, offered for sale, or1012 distributed in this state with the applicable refund value:1013 (A) The beverage PRO shall provide redemption options that mee t the redemption1014 convenience standards in paragraph (2) of subsection (e) of Code Section 12-8-110.6;1015 and1016 (B) All redeemed beverage containers shall be recycled or reused.1017 (2) The beverage PRO shall propose performance standards to me et the state-wide1018 requirements in subsection (g) of this Code section, including:1019 (A) Redemption rates;1020 (B) Reuse rates; and1021 (C) Postconsumer recycled content requirements by covered material type.1022 (c) The department may require a PRO to obtain third-party certification of any activity1023 or achievement of any performance target required by this artic le if a third-party1024 certification is readily available, deemed applicable, of reaso nable cost, and meets the1025 H. B. 1237 - 39 - 26 LC 28 0711ER requirements of Code Section 12-8-110.10. The department shall provide the PRO with1026 notice of at least one year prior to requiring the use of third-party certification.1027 (d) Proposed performance standards shall demonstrate continuous improvement over time.1028 (e) For purposes of determining whether performance targets are being met, the PRO plan1029 shall provide a methodology for measuring performance targets, subject to approval by the1030 department, based on the metrics and plans outlined in the needs assessment.1031 (f) The department shall establish state-wide requirements and a date by which those1032 requirements shall be met for each of the following categories for packaging and paper1033 products:1034 (1) Reuse rates;1035 (2) Return rates;1036 (3) Recycling rates;1037 (4) Composting rates;1038 (5) Plastic source reduction; and1039 (6) Postconsumer recycled content requirements by covered material type.1040 (g) The department shall establish state-wide requirements and a date by which those1041 requirements shall be met for each of the following categories for beverage containers:1042 (1) Redemption rates;1043 (2) Reuse rates; and1044 (3) Postconsumer recycled content requirements by covered material type.1045 12-8-110.8.1046 (a)(1) Not later than four years after the effective date of t his article, and each March1047 thereafter, each PRO shall submit a written annual report to the department that contains,1048 at a minimum, the following information for the previous program year:1049 (A) The amount of covered materials sold, offered for sale, or distributed in this state1050 by the participating producers of that PRO, by material type;1051 H. B. 1237 - 40 - 26 LC 28 0711ER (B) The amount of covered materials reused, recycled, and comp osted by material1052 type;1053 (C) A description of the responsible end markets that accepted covered materials;1054 (D) The total cost to implement the producer responsibility pl an and a detailed1055 description of plan expenditures;1056 (E) A copy of a financial audit of program operations conducte d by an independent1057 third party approved by the department;1058 (F) A list of any producers found to be out of compliance with the requirements of this1059 article and actions taken by the PRO to return the producer to compliance;1060 (G) A description of education and outreach activities underta ken, any evaluations1061 conducted of their efficacy, and plans for next program year's activities;1062 (H) A description of technical assistance provided to producer s regarding source1063 reduction and covered material redesign and actions taken by producers to reduce waste1064 and redesign covered materials to be reusable, recyclable, and compostable and comply1065 with Code Section 12-8-110.15;1066 (I) An evaluation of the process established by the PRO to ans wer questions from1067 covered entities regarding relevant end of life services;1068 (J) A description of program performance problems that emerged in specific locations1069 and efforts taken or proposed by the producer organization to address them;1070 (K) Any proposed amendments to the producer responsibility plan to improve program1071 performance or reduce costs;1072 (L) A summary of consultations held with the advisory board and how any feedback1073 was incorporated into the report as a result of the consultations, together with a list of1074 rejected recommendations and the reasons for rejection; and1075 (M) A description of progress made toward the performance targ ets in the PRO's1076 producer responsibility plan under subparagraph (a)(5)(G) of Code Section 12-8-110.51077 and performance standards under Code Section 12-8-110.7.1078 H. B. 1237 - 41 - 26 LC 28 0711ER (2) To facilitate preparing the annual report, service providers operating under a service1079 agreement with the PRO shall, if requested, forward relevant data to the PRO. The PRO1080 shall treat any data submitted under this paragraph as nonpublic data.1081 ( 3 ) A P R O t h a t f a i l s t o m e e t a p e r f o r m a n c e t a r g e t e s t a b l i s h e d in the producer1082 responsibility plan under subparagraph (a)(5)(G) of Code Section 12-8-110.5 shall, within1083 90 days of filing an annual report under this Code section, fil e with the department a1084 discussion of the factors contributing to the failure and propo se an amendment to the1085 producer responsibility plan specifying changes in operations t hat the producer1086 responsibility plan will make that are designed to achieve the following year's targets.1087 (b)(1) Each material recovery facility, composting facility, redemption facility, or similar1088 facility operating under an agreement with a PRO shall report annually to the department1089 and the PROs on the following:1090 (A) Inbound and outbound contamination levels;1091 (B) Incoming and outgoing weight of covered materials;1092 (C) A list of incoming material sources, and outgoing material destinations that receive1093 covered material by type of material and weight;1094 (D) How materials are managed; and1095 (E) Number of inbound and outbound beverage containers with the applicable refund1096 value.1097 (2) Annual reports under this subsection shall be published by the state and include a1098 breakdown of covered materials and noncovered materials managed at facilities.1099 (c) Each public service provider, including municipalities ope rating or contracting with1100 a private service provider to operate a recycling, reuse, or composting program for covered1101 materials and service providers directly contracting with a PRO, shall provide the following1102 information annually to the relevant PRO:1103 (1) Number of covered entities by covered entity type served by the program and total1104 number of covered entities in the municipality;1105 H. B. 1237 - 42 - 26 LC 28 0711ER (2) Covered materials collected for recycling, reuse, or composting;1106 (3) Method and frequency of recycling collection, including wh ether collection is1107 through carts, bins, single stream, dual stream, or some other method;1108 (4) Annual amounts of covered material collected for recycling, reuse, or composting;1109 (5) Facility to which covered materials are delivered; and1110 (6) Assessment of convenience, as compared to waste collection, tracked year over year.1111 12-8-110.9.1112 (a) The packaging and beverage PROs shall establish a coordina ting body and1113 coordination plan to ensure the efficient delivery of services and coordinated efforts to1114 meet the requirements of this article. These coordinating efforts shall:1115 (1) Ensure end of life service costs are fairly distributed, regardless of which system a1116 consumer returns covered materials through;1117 (2) Describe a method through which the PROs will compensate each other for handling1118 covered materials and cross-program expenses;1119 (3) Address planning and operating jointly funded infrastructu re, including, but not1120 limited to, alternative collection programs and reuse infrastructure;1121 (4) Coordinate education and outreach to ensure consistent and appropriate messaging;1122 (5) Coordinate activities under the reuse financial assistance program pursuant to Code1123 Section 12-8-110.14; and1124 (6) Periodically evaluate covered materials managed by each PR O and whether1125 alternative management of those covered materials would better achieve the performance1126 standards in Code Section 12-8-110.7.1127 (b) The PROs, through the coordinating body, shall submit the coordination plan required1128 under subsection (a) of this Code section to the department not later than the date on which1129 the packaging PRO submits its first producer responsibility pla n under paragraph (2) of1130 subsection (a) of Code Section 12-8-110.5 and every five years thereafter.1131 H. B. 1237 - 43 - 26 LC 28 0711ER (c) The PROs, through the coordinating body, shall submit the coordination plan to the1132 advisory board for review and comment at least 90 days before the plan is submitted to the1133 department.1134 (d) The department shall review the coordination plan or any amendments and approve,1135 modify, or reject them following the process described in paragraphs (8) through (10) of1136 subsection (a) of Code Section 12-8-110.5.1137 (e) Within 30 calendar days after approval of the coordination plan or amendments by the1138 department, the coordinating body and the beverage and packaging PROs shall implement1139 the approved coordination plan and post the plan on each PRO's website.1140 12-8-110.10.1141 (a) The department shall adopt rules to review third-party cer tifications and create a1142 publicly available list of approved third-party certifications for the following:1143 (1) Postconsumer recycled content;1144 (2) Responsible end markets;1145 (3) Reusable covered materials; and1146 (4) Recycling, composting, and reuse rates.1147 (b) In the rules adopted under subsection (a) of this Code sec tion, the department shall1148 include procedures for periodic review of approved third-party certifications, including for1149 public petition for review and for removal of approval for third-party certifications.1150 12-8-110.11.1151 (a) A PRO or an individual producer may, as part of a producer responsibility plan or in1152 a separate filing with the department, propose alternative collection programs for covered1153 materials that are not on the recyclable covered materials list developed under Code1154 Section 12-8-110.12 or the compostable covered materials list d eveloped under Code1155 Section 12-8-110.13.1156 H. B. 1237 - 44 - 26 LC 28 0711ER (b) No alternative collection program shall be implemented wit hout the department's1157 written approval as described in this Code section.1158 (c) The department shall, in consultation with the advisory bo ard, service providers,1159 political subdivisions, and others, approve or reject an alternative collection program for1160 a covered material if petitioned by a PRO, or an individual producer.1161 (d) The department shall establish a process by which the PRO or an individual producer1162 can petition for an alternative collection program to be considered.1163 (e) The department may only approve an alternative collection program if it meets, at a1164 minimum, the following criteria:1165 (1) The alternative collection program is accessible to at lea st 60 percent of the1166 population of the state;1167 (2) The covered material will be recycled and composted at a rate that meets or exceeds1168 the rates set in the performance standards in Code Section 12-8-110.7; and1169 (3) Covered materials are sent to responsible end markets.1170 (f) The department shall publish a ruling on the alternative collection program describing1171 why it was approved or denied and how it measured against the c riteria listed in1172 subsection (e) of this Code section.1173 (g) Approved alternative collection programs shall be reviewed by the department every1174 five years to ensure the alternative collection program continues to meet the criteria listed1175 in subsection (e) of this Code section. If the alternative collection program fails to meet1176 the criteria, the department shall remove the program from the list of approved alternative1177 collection programs.1178 (h) A producer that manages a type of covered material under a n approved alternative1179 collection program may offset their payment obligations to a PRO.1180 H. B. 1237 - 45 - 26 LC 28 0711ER 12-8-110.12.1181 (a) The department shall, in consultation with the advisory board, PROs, service providers,1182 political subdivisions, and others, develop and publish a list of:1183 (1) Approved processes determined to be recycling; and1184 (2) Recyclable covered materials in the state.1185 (b) In developing the list of approved processes determined to be recycling under1186 paragraph (1) of subsection (a) of this Code section, the depar tment shall ensure the1187 approved processes meet the definition of recycling in paragraph (36) of subsection (a) of1188 Code Section 12-8-110.1 and shall take into consideration:1189 (1) The generation of hazardous waste;1190 (2) The generation of greenhouse gases;1191 (3) Environmental impacts;1192 (4) Environmental justice area impacts;1193 (5) Public health impacts; and1194 (6) Meets an unmet need in this state.1195 (c) The covered materials included on the list of recyclable c overed materials under1196 paragraph (2) of subsection (a) of this Code section shall meet the definition of recyclable1197 in paragraph (35) of subsection (a) of Code Section 12-8-110.1 and shall meet all of the1198 following criteria:1199 (1) The covered material type and form is regularly accepted i n residential recycling1200 programs or redemption facilities and separated for mechanical or manual recycling by1201 recycling programs for jurisdictions that collectively encompass at least 60 percent of the1202 population of this state;1203 (2) The covered material type and form is regularly sorted and aggregated into regularly1204 traded commodity grades accepted for recycling at responsible end markets;1205 (3) The covered material format falls into a relevant Institut ion of Scrap Recycling1206 Industries specification;1207 H. B. 1237 - 46 - 26 LC 28 0711ER (4) Seventy-five percent of that covered material category, by unit, is in a recyclable1208 format;1209 (5) For plastic covered materials, the plastic covered materia l is designed to ensure1210 recyclability and does not include any components, inks, adhesives, or labels that prevent1211 the recyclability of the covered material according to the APR Design Guide published1212 by the Association of Plastic Recyclers or its successor;1213 (6) For nonplastic covered materials, the covered material is designed to ensure1214 recyclability and does not include any components, inks, adhesives, or labels that prevent1215 the recyclability of the covered material; and1216 (7) The product or packaging does not contain an additive of high concern identified in1217 Code Section 12-8-110.15.1218 (d) Not later than two years after the effective date of this article, the department shall1219 provide the lists required under subsection (a) of this Code section to the PROs, which shall1220 forward the list to all service providers and political subdivisions as relevant. Recyclable1221 covered materials in this state are required to be collected by service providers either1222 directly contracted by a PRO or a public service provider receiving reimbursement from1223 a PRO.1224 (e) The department may update the lists in subsection (a) of this Code section every two1225 years. PROs shall enact additions and removals from the lists across the state within one1226 year of notification by the department. In adding or removing covered materials to the list1227 of recyclable covered materials in this state, the department s hall consider whether the1228 covered material type and form will be accepted pursuant to a producer responsibility plan.1229 12-8-110.13.1230 (a) The department shall, in consultation with the advisory bo ard, the PROs, service1231 providers, political subdivisions, and others, develop a list o f compostable covered1232 materials in this state. The covered materials included on such list shall meet the definition1233 H. B. 1237 - 47 - 26 LC 28 0711ER of compostable in paragraph (8) of subsection (a) of Code Secti on 12-8-110.1 and shall1234 meet all of the following criteria:1235 (1) The covered material type and form are regularly accepted in residential composting1236 programs and collected by composting programs for jurisdictions that collectively1237 encompass at least 60 percent of the population of this state; and1238 (2) The covered material does not contain an additive of high concern identified in Code1239 Section 12-8-110.15.1240 (b) Not later than two years after the effective date of this article, the department shall1241 provide a list of compostable covered materials to the PROs, which shall forward the list1242 to all service providers and political subdivisions as relevant . Covered materials1243 determined to be compostable in this state are required to be collected by service providers1244 either directly contracted by a PRO or a public service provider receiving reimbursement1245 from a PRO.1246 (c) The department may add or remove covered materials to the compostable covered1247 materials list every two years. PROs shall enact additions and removals from covered1248 materials across this state within one year of notification by the department. In adding or1249 removing covered materials to the compostable covered materials list, the department shall1250 consider whether the covered material type and form will be acc epted pursuant to a1251 producer responsibility plan.1252 12-8-110.14.1253 (a) Each registered PRO shall annually fund and implement a re use financial assistance1254 program to reduce the negative environmental impacts of covered materials through reuse1255 systems. The funded amount shall be:1256 (1) At least $5 million beginning in the first year of impleme ntation of the PRO's first1257 accepted program plan and adjusted annually thereafter for inflation. The PRO shall use1258 H. B. 1237 - 48 - 26 LC 28 0711ER the Consumer Price Index for Urban Wage Earners and Clerical Workers to calculate the1259 annual rate of inflation adjustment effective January 1 of each year; and1260 (2) Sufficient to achieve the reuse and return rate targets and requirements established1261 in Code Section 12-8-110.7. If, at any point, the department d etermines that the reuse1262 and return rate targets or state-wide requirements are not met, each PRO shall increase1263 annual contributions to and expenditures from the reuse financial assistance program.1264 (b) Entities eligible for reuse financial assistance include, but are not limited to:1265 (1) Government entities;1266 (2) Tribal governments;1267 (3) Nonprofit organizations; and1268 (4) Private organizations.1269 (c) In administering the reuse financial assistance program, t he PROs shall solicit1270 applications using an open and competitive process and shall select applications through1271 an evaluation that considers criteria, including, but not limited to:1272 (1) Environmental benefits of the activity;1273 (2) Ability to scale and harmonize the activity;1274 (3) Coordination with other proposed or funded activities by any PRO;1275 (4) Cost-effectiveness of the activity; and1276 (5) The needs of economically distressed or overburdened communities.1277 (d) The PROs shall consult with the advisory board in determin ing the criteria in1278 subsection (c) of this Code section, evaluating and selecting a pplications, and in1279 administering the reuse financial assistance program.1280 12-8-110.15.1281 (a) As used in this Code section, the term:1282 (1) 'Additive' means a substance which is intentionally added to covered materials to1283 achieve a physical or chemical effect during manufacturing or in the final material.1284 H. B. 1237 - 49 - 26 LC 28 0711ER (2) 'Credible scientific evidence' means the results of a study, the experimental design1285 and conduct of which have undergone independent scientific peer r e v i e w , t h a t a r e1286 published in a peer reviewed journal or in a publication of an authoritative federal, state,1287 or international governmental agency, including, but not limited to:1288 (A) The United States Department of Health and Human Services;1289 (B) The National Toxicology Program;1290 (C) The United States Food and Drug Administration;1291 (D) The United States Centers for Disease Control and Prevention;1292 (E) The United States Environmental Protection Agency;1293 (F) The World Health Organization; or1294 (G) The European Union, European Chemicals Agency.1295 (3) 'Incidental presence' means the presence of an additive as an unintended or undesired1296 ingredient of a covered material at a concentration that is less than 100 parts per million1297 by weight (0.01 percent), or a lower threshold as determined to be necessary to protect1298 human health by the department.1299 (4) 'Intentionally added' means the act of deliberately utiliz ing an additive in the1300 formation of a covered material where its continued presence is desired in the final1301 covered material to provide a specific characteristic, appearance, or quality. The use of1302 an additive as a processing agent, mold release agent, or inter mediate is considered1303 intentional addition for the purposes of this article where the additive is detected in the1304 final covered material. Such term does not include the use of postconsumer recycled1305 content, where some portion of the postconsumer recycled content may contain amounts1306 of the additive but is neither desired nor deliberate.1307 (5) 'Manufacturing' means the physical or chemical modification of a material to produce1308 covered materials.1309 H. B. 1237 - 50 - 26 LC 28 0711ER (6) 'Perfluoroalkyl and polyfluoroalkyl substances' or 'PFAS' means all members of the1310 class of fluorinated organic chemicals containing at least one fully fluorinated carbon1311 atom.1312 (7) 'Persistent, bioaccumulative, and toxic' means substances meeting the criteria1313 established in Section 1 of Annex XIII to the Registration, Evaluation, Authorisation and1314 Restriction of Chemicals (REACH) Regulation of the European Uni on (EC) No1315 1907/2006 of the European Parliament and of the Council of 18 D ecember 2006, as1316 amended, or its successor.1317 (8) 'Persistent, mobile, and toxic' means substances meeting t he criteria established in1318 'REACH: Improvement of guidance and methods for the identification and assessment1319 of PMT/vPvM substances: Final Report,' or its successor.1320 (9) 'Phthalates' means all members of the class of organic che micals that are esters of1321 phthalic acid and that contain two carbon chains located in the ortho position.1322 (b)(1) Not later than four years after the effective date of this article, a producer shall not1323 sell, offer for sale or for promotional purposes, or distribute covered materials to which1324 the following additives of high concern have been intentionally added during1325 manufacturing or distribution in any amount greater than an incidental presence:1326 (A) Lead;1327 (B) Cadmium;1328 (C) Mercury;1329 (D) Hexavalent chromium;1330 (E) Phthalates;1331 (F) PFAS; and1332 (G) Other additives of high concern as identified and prohibit ed by the department1333 under this Code section.1334 (2) No material used to replace an additive regulated by this article in a covered material1335 may be used in a quantity or manner that creates a hazard as great as or greater than the1336 H. B. 1237 - 51 - 26 LC 28 0711ER hazard created by the additive regulated by this article, taking into account the factors in1337 paragraph (2) of subsection (c) of this Code section.1338 (c)(1) In accordance with the requirements of this Code sectio n, the department shall1339 periodically revise and publish a list of additives or groups of additives of high concern1340 in covered materials.1341 (2) An additive or group of additives may be included on the l ist of additives of high1342 concern under this Code section only if:1343 (A) The additive or group of additives has been identified by a governmental entity on1344 the basis of credible scientific evidence as being:1345 (i) A carcinogen;1346 (ii) A reproductive or developmental toxicant;1347 (iii) An endocrine disruptor;1348 (iv) Persistent, bioaccumulative, and toxic; or1349 (v) Persistent, mobile, and toxic; or1350 (B) The department determines that there is credible scientifi c evidence that the1351 additive or group of additives is a reproductive or developmental toxicant, endocrine1352 disruptor, or carcinogen in humans or the environment.1353 (3) The department in its periodic review of the list of addit ives of high concern1354 published pursuant to this Code section shall remove from the list any additives or group1355 of additives that no longer meets the criteria of paragraph (2) of this subsection and may1356 add to the list of additives of high concern additional additives or groups of additives that1357 meet the criteria of paragraph (2) of this subsection.1358 (4) The department may consider the extent to which an additive or group of additives1359 known to be used or present in covered materials is adequately regulated by the federal1360 government or an agency of this state to reduce or prevent the same public health threats1361 that would be the basis for addressing the additive under this Code section.1362 H. B. 1237 - 52 - 26 LC 28 0711ER 12-8-110.16.1363 Not later than five years after the effective date of this article and every year thereafter, the1364 department shall submit a report to the Governor and to the cha irpersons and ranking1365 minority members of House Committee on Natural Resources and En vironment and the1366 Senate Natural Resources and the Environment Committee. The report shall:1367 (1) Summarize the annual reports submitted to the department by all PROs;1368 (2) Report on progress achieved in the previous year toward performance targets under1369 subparagraph (a)(5)(G) of Code Section 12-8-110.5 and performan ce standards under1370 Code Section 12-8-110.7;1371 (3) Report on implementation of Code Section 12-8-110.15;1372 (4) Summarize enforcement actions under Code Section 12-8-110.17; and1373 (5) Contain other information regarding the performance of the PROs in implementing1374 this article.1375 12-8-110.17.1376 (a) The department shall enforce this article as provided unde r this Code section. The1377 department or the Attorney General shall first issue a corrective order before pursuing other1378 enforcement actions.1379 (b) The department may issue a notice of violation to, and impose an administrative civil1380 penalty not to exceed $50,000.00 per day of violation on, any entity not in compliance with1381 this article or any of the regulations which the department adopts to implement this article.1382 (c) In the event that the department determines that a PRO no longer meets the1383 requirements of this article or fails to implement and administ er an approved producer1384 responsibility plan in a manner that effectuates the purposes of this article, the department1385 shall revoke its approval of the PRO and may approve additional PROs pursuant to Code1386 Section 12-8-110.4.1387 H. B. 1237 - 53 - 26 LC 28 0711ER (d) If the department determines that a PRO or producer has not achieved the performance1388 standards established pursuant to Code Section 12-8-110.7, the department shall, through1389 a public process, adopt regulations that place requirements on the PRO or producers to1390 achieve the performance standards specified in Code Section 12-8-110.7.1391 12-8-110.18.1392 The department is authorized to promulgate rules and regulation s to implement the1393 provisions of this article."1394 SECTION 2.1395 All laws and parts of laws in conflict with this Act are repealed.1396 H. B. 1237 - 54 -