Creates multiple chapters to provide and establish a comprehensive program for extended producer responsibility for packaging and paper, and for recycling of beverage containers.

2026 -- H 7911 ======== LC004624 ======== S T A T E O F R H O D E I S L A N D IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2026 ____________ A N A C T RELATING TO HEALTH AND SAFETY -- EXTENDED PRODUCER RESPONSIBILITY FOR PACKAGING AND PAPER ACT Introduced By: Representatives McEntee, Spears, Bennett, Knight, Boylan, Caldwell, Carson, Handy, Speakman, and Donovan Date Introduced: February 27, 2026 Referred To: House Environment and Natural Resources It is enacted by the General Assembly as follows: SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby 1 amended by adding thereto the following chapters: 2 CHAPTER 19.20 3 EXTENDED PRODUCER RESPONSIBILITY FOR PACKAGING AND PAPER ACT 4 23-19.20-1. Definitions. 5 (a) As used in this chapter and in chapters 19.21 and 19.22 of title 23, the following words 6 and phrases shall have the following meanings, unless another meaning is clearly intended by the 7 context: 8 (1) "Additive of high concern" means: 9 (i) An intentionally added substance that is present beyond an incidental presence in 10 covered materials; and 11 (ii) Has been identified on the basis of credible scientific evidence and with a risk -based 12 approach as being: 13 (A) A carcinogen; 14 (B) A reproductive or developmental toxicant; 15 (C) An endocrine disruptor; or 16 (D) Persistent, bioaccumulative, and toxic. Additives of high concern do not include 17 materials regulated under the provisions of chapter 18.13 of title 23 ("toxic packaging reduction 18 LC004624 - Page 2 of 59 act"). 1 (2) "Applicable refund value" means the value established under § 23-19.20-11. 2 (3) "Beverage" means a drinkable liquid intended for human oral consumption. Beverage 3 does not include: 4 (i) A drug regulated under the federal Food, Drug, and Cosmetic Act, 21 U.S.C. Ch. 9, § 5 301 et seq.; 6 (ii) One hundred percent (100%) fluid milk; 7 (iii) Infant formula; or 8 (iv) A meal replacement liquid. 9 (4) "Beverage container" means any prepackaged container designed to hold beverages, 10 including the label, cap, and any other material attached to the container at the time of distribution. 11 (5) "Beverage container collection mechanism" means any manual or technological means 12 by which empty covered beverage containers are properly identified as part of processing a 13 consumer's refund. 14 (6)(i) "Beverage producer" means: 15 (A) The brand owner responsible for the brand visible on a covered beverage container and 16 who is responsible for compliance with the requirements of this chapter for a covered beverage 17 container that is introduced, either physically or via e-commerce, in this state; 18 (B) If there is no person to which subsection (a)(6)(i) (A) of this section applies, the 19 producer is the person who is the importer of record for the covered beverage container into the 20 United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in 21 this state; or 22 (C) If there is no person to which subsections (a)(6)(i)(A) or (a)(6)(i)(B) of this section 23 applies, the producer is the person that first distributes the covered beverage container in or into 24 this state. 25 (ii) "Beverage producer" does not include: 26 (A) Government entities; or 27 (B) Registered 501(c)(3) charitable organizations and 501(c)(4) social welfare 28 organizations. 29 (7) "Brand" means a name, symbol, word, or mark that identifies a product and attributes 30 the product and its components, including packaging, to the brand owner. 31 (8) "Brand owner" means a person that owns or holds an exclusive license to a brand or 32 that otherwise has rights to market a product under the brand, whether or not the brand's trademark 33 is registered. 34 LC004624 - Page 3 of 59 (9) "Canner" means individuals who collect and redeem covered beverage containers for 1 critical income. 2 (10) "Centralized processing facility" means a facility that sorts and then bales or 3 aggregates covered beverage containers and associated materials for the purpose of recycling. 4 (11) "Collection rate" means the amount of a covered material by covered materials type 5 collected by service providers and transported for recycling or composting divided by the total 6 amount of the type of a covered material by covered materials type sold or distributed into the State 7 of Rhode Island by the relevant unit of measurement in the approved program plan. 8 (12) "Compostable material" means a covered material that: 9 (i) Meets, and is labeled to reflect that it meets, the American Society for Testing and 10 Materials Standard Specification for Labeling of Plastics Designed to be Aerobically Composted 11 in Municipal or Industrial Facilities (D6400) or its successor; 12 (ii) Meets, and is labeled to reflect that it meets, the American Society for Testing and 13 Materials Standard Specification for Labeling of End Items that Incorporate Plastics and Polymers 14 as Coatings or Additives with Paper and Other Substrates Designed to be Aerobically Composted 15 in Municipal or Industrial Facilities (D6868) or its successor; 16 (iii) Is comprised of only wood without any coatings or additives; or 17 (iv) Is comprised of only paper without any coatings or additives. 18 (13) "Composting" means the controlled microbial degradation of source -separated 19 compostable materials to yield a humus-like product. 20 (14) "Composting rate" means the amount of compostable covered material that is managed 21 through composting, divided by the total amount of compostable covered material sold or 22 distributed into the State of Rhode Island by the relevant unit of measurement in the approved 23 program plan. 24 (15) "Consumer" means an individual who purchases a beverage in the State of Rhode 25 Island in a beverage container for consumption. 26 (16) "Contamination" means: 27 (i) The presence of materials that are not on the list of materials collected in that material 28 stream; or 29 (ii) The presence of materials that are not specified or accepted as a component of the 30 feedstock or commodity. 31 (17) "Coordination plan" means the joint plan developed by the packaging program 32 producer responsibility organization and the recycling refund producer responsibility organization. 33 (18) "Covered beverage container" means any of the following beverage containers subject 34 LC004624 - Page 4 of 59 to a recycling refund: 1 (i) Except as provided in subsection (18)(ii) of this section, any glass, plastic, or metal can 2 or bottle with a capacity of at least forty milliliters (40 ml) and no more than one gallon; and 3 (ii) Beginning no earlier than the second recycling refund plan implementation period, 4 other beverage containers proposed for inclusion in the recycling program by a recycling refund 5 producer responsibility organization and approved by the department. 6 (19) "Covered entity" means a person or location that receives covered services for covered 7 materials in accordance with the requirements of this chapter, including: 8 (i) A single-family residence; 9 (ii) A multifamily residence; 10 (iii) A school as defined in § 16-8-7; 11 (iv) A nonprofit corporation with annual revenue of less than thirty -five million dollars 12 ($35,000,000); and 13 (v) A state agency, political subdivision, public area, public entity or other governmental 14 unit. 15 (20)(i) "Covered material" means packaging and paper products introduced in the State of 16 Rhode Island. 17 (ii) "Covered material" does not include covered beverage containers or exempt materials. 18 (21) "Covered materials type" means a singular and specific type of covered material, such 19 as paper, plastic, metal, or glass, that: 20 (i) Can be categorized based on distinguishing chemical or physical properties, including 21 properties that allow a covered materials type to be aggregated into a discrete commodity category 22 for purposes of reuse, recycling, or composting; and 23 (ii) Is based on similar uses in the form of a product or package. 24 (22) "Covered services" means collecting, transferring, transporting, sorting, processing, 25 recovering, preparing, or otherwise managing for purposes of source reduction, reuse, recycling, or 26 composting. 27 (23) "De minimis" means a sum of revenue earned by a person in the most recent fiscal 28 year from global gross revenues, not including on-premises alcohol sales, for the prior fiscal year 29 of: 30 (i) Until January 1, 2030, less than two million dollars ($2,000,000); or 31 (ii) Beginning January 1, 2030, less than two million dollars ($2,000,000), as adjusted for 32 inflation by the department. 33 (24) "Department" means the department of environmental management. 34 LC004624 - Page 5 of 59 (25) "Environmental impact" means the impact of a covered material on human health and 1 the environment from extraction and processing of the raw materials composing the covered 2 material through manufacturing, distribution, use, recovery for reuse, recycling, or composting; 3 and final disposal. 4 (26) "Environmental justice area" means a census block group with a low -income and/or 5 minority population greater than twice the statewide average. 6 (27) "Executive director" means the executive director of the packaging producer 7 responsibility organization or recycling refund producer responsibility organization. 8 (28) "Exempt materials" means materials, or any portion of materials, that: 9 (i) Are packaging for infant formula, as defined in 21 U.S.C. § 321(z); 10 (ii) Are packaging for medical food, as defined in 21 U.S.C. § 23 360ee(b)(3); 11 (iii) Are packaging for a fortified oral nutritional supplement used by persons who require 12 supplemental or sole source nutrition to meet nutritional needs due to special dietary needs directly 13 related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms 14 are defined by the International Classification of Diseases, tenth revision; 15 (iv) Are packaging for a product regulated as a drug or medical device by the United States 16 Food and Drug Administration, including associated components and consumable medical 17 equipment; 18 (v) Are packaging for medical equipment or product used in medical settings that is 19 regulated by the United States Food and Drug Administration, including associated components 20 and consumable medical equipment; 21 (vi) Are drugs, biological products, parasiticides, medical devices, or in vitro diagnostics 22 that are used to treat, or that are administered to, animals and are regulated by the United States 23 Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 24 et seq., by the United States Department of Agriculture under the federal Virus-Serum-Toxin Act, 25 21 U.S.C. § 151 et seq.; 26 (vii) Are packaging for products regulated by the United States Environmental Protection 27 Agency under the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.; 28 (viii) Are packaging used to contain liquefied petroleum gas and are designed to be refilled; 29 (ix) Are packaging used to contain hazardous or flammable products regulated by the 2012 30 federal Occupational Safety and Health Administration Hazard Communication Standard, 29 CFR 31 § 1910.1200, that prevent the packaging from being source reduced or made reusable, recyclable, 32 or compostable, as determined by the department: 33 (x) Are packaging that is being collected and properly managed through a paint producer 34 LC004624 - Page 6 of 59 responsibility program approved under chapter 24.12 of title 23 ("proper management of unused 1 paint"); 2 (xi) Are exempt materials, as determined by the department; or 3 (xii) Are covered materials that: 4 (A) A producer distributes to another producer; 5 (B) Are subsequently used to contain a product, and the product is distributed to a 6 commercial or business entity for the production of another product; and 7 (C) Are not introduced to a person other than the commercial or business entity that first 8 received the product used for the production of another product. 9 (29) "Express redemption site" means a designated return location that allows consumers 10 to return covered beverage containers. These locations will not require cash handling on site; rather, 11 upon return, if needed, beverage containers will be transported to centralized processing facilities, 12 and refunds will be credited to the consumer's virtual account. This may include bag-drop systems, 13 reverse vending machines, or other beverage container collection mechanisms to enhance 14 convenience and accessibility for consumers. 15 (30) "Fraudulent activity" means any of the following: 16 (i) Redeeming a beverage container purchased outside the State of Rhode Island; 17 (ii) Altering a beverage container not eligible for a refund in the State of Rhode Island 18 recycling refund system to make it appear eligible for a refund; 19 (iii) Altering a receipt to increase the payout beyond the amount from appropriately 20 redeeming covered beverage containers; 21 (iv) Tampering with beverage container collection mechanisms to enable redemption of a 22 beverage container or knowingly attempting to redeem a beverage container that: 23 (A) Was not purchased in the State of Rhode Island; 24 (B) Is not in the State of Rhode Island recycling refund system; 25 (C) Had no deposit paid on it in the State of Rhode Island; or 26 (D) Has already been redeemed for a refund; and 27 (v) Selling or offering for sale a covered beverage container that has not been reported to 28 the recycling refunds producer responsibility organization. 29 (31) "Full-service redemption site" means a return location or avenue where individuals 30 may return covered beverage containers to receive immediate refunds for their returns. 31 (32) "Government entity" means any: 32 (i) City, town, or other local government, including any municipal corporation, quasi -33 municipal corporation, or special purpose district, or any office, department, division, bureau, 34 LC004624 - Page 7 of 59 board, commission, or agency thereof, or other local public agency; 1 (ii) State office, department, division, bureau, board, commission, or other state agency; 2 (iii) Federally-recognized Indian tribes whose traditional lands and territories include parts 3 of the State of Rhode Island; or 4 (iv) Federal office, department, division, bureau, board, commission, or other federal 5 agency. 6 (33) "Incidental presence" means the presence of an additive at a concentration that is less 7 than one hundred parts per million (100 ppm) by weight or one hundredths percent (0.01%). 8 (34) "Independent auditor" means an independent and actively licensed certified public 9 accountant that is: 10 (i) Retained by a producer responsibility organization; 11 (ii) Not otherwise employed by or affiliated with a producer responsibility organization; 12 and 13 (iii) Qualified to conduct an audit under State of Rhode Island law. 14 (35) "Individual plan" means a plan submitted by a producer or beverage producer that 15 registers with the department as a packaging producer responsibility organization or as a recycling 16 refunds producer responsibility organization to address the covered materials or covered beverage 17 containers of the producer. 18 (36) "Infrastructure investment" means an investment by a packaging producer 19 responsibility organization that funds: 20 (i) Equipment or facilities in which covered materials are prepared for reuse, recycling, or 21 composting; 22 (ii) Equipment or facilities used for source reduction, reuse, recycling, or composting of 23 covered materials; or 24 (iii) The expansion or strengthening of demand for and use of covered materials by 25 responsible end markets in the State of Rhode Island or region. 26 (37) "Intentionally added substance" means a substance that: 27 (i) A manufacturer intentionally added to a material in the formation of a covered material; 28 and 29 (ii) Serves an intended function or technical effect in the final covered material. 30 (iii) "Intentionally added substance" does not include the use of postconsumer recycled 31 content, where some portion of the postconsumer recycled content may contain amounts of the 32 substance but is neither desired nor deliberate. 33 (38) "Introduce" means to sell, offer for sale, distribute, or use to ship a product within or 34 LC004624 - Page 8 of 59 into the State of Rhode Island. 1 (39) "Labor organization" means any organization that exists and is constituted for the 2 purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning 3 grievances, terms or conditions of employment, or of other mutual aid or protection. 4 (40) "Living wage" means the minimum hourly wage necessary to allow a person working 5 forty (40) hours per week to afford basic needs. 6 (41) "Lobby" and "lobbying" means the practice of promoting, opposing, or in any manner 7 influencing or attempting to influence the introduction, defeat, or enactment of legislation before 8 any legislative body; opposing or in any manner influencing the executive approval, veto, or 9 amendment of legislation; or the practice of promoting, opposing, or in any manner influencing or 10 attempting to influence the enactment, promulgation, modification, or deletion of regulations 11 before any regulatory body. The term does not include providing public testimony before a 12 legislative body or regulatory body or any committee thereof. 13 (42) "Material recovery facility" means a facility in the State of Rhode Island that collects, 14 compacts, repackages, sorts, or processes for transport source separated material for the purpose of 15 recycling. 16 (43) "Municipality" means the individual cities and towns of the State of Rhode Island. 17 (44) "Needs assessment" means an assessment conducted according to § 23 -19.20-8. 18 Except where specified otherwise, needs assessment means the most recently completed needs 19 assessment. 20 (45) "On -site consumption" means consumption of a beverage in a covered beverage 21 container that is sold by an establishment and is intended to be consumed on the premises, and with 22 the beverage container retained at the same establishment after consumption. 23 (46) "Packaging" means a material, substance, or object that is used to protect, contain, 24 transport, serve, or facilitate delivery of a product and is sold or supplied with the product to the 25 consumer for personal, non-commercial use. 26 (47) "Packaging producer responsibility organization" means a nonprofit corporation that 27 is tax exempt under chapter 501(c)(3) of the federal Internal Revenue Code and that is created by 28 a group of producers to implement the packaging producer program plan. 29 (48) "Packaging producer program plan" means a program plan developed by the 30 packaging producer responsibility organization pursuant to § 23 -19.20-9 that is prepared and 31 submitted to the department for review and approval. 32 (49) "Packaging program advisory council" means the council established under this 33 chapter for the packaging program. 34 LC004624 - Page 9 of 59 (50)(i) "Paper product" means paper sold or supplied to a consumer for personal, 1 noncommercial use, including flyers, brochures, booklets, catalogs, magazines, printed paper, and 2 all other paper materials. 3 (ii) "Paper product" does not include: 4 (A) Bound books; 5 (B) Conservation-grade and archival-grade paper; 6 (C) Newspapers, including supplements or enclosures; 7 (D) Magazines that have a circulation of fewer than ninety-five thousand (95,000) and that 8 includes content derived from primary sources related to news and current events; 9 (E) Copy paper; 10 (F) Paper for use in building construction; and 11 (G) Paper that could reasonably be anticipated to become unsafe or unsanitary to handle. 12 (51) "Postconsumer recycled content" means the amount of postconsumer material used 13 by a producer in the production of a covered materials type, divided by the total amount of that 14 covered materials type used for products sold or distributed by the producer in that same calendar 15 year. 16 (52)(i) "Producer" means the following person responsible for compliance with 17 requirements under this chapter for a covered material introduced into the state: 18 (A) For items sold in or with packaging at a physical retail location in the State of Rhode 19 Island: 20 (I) If the item is sold in or with packaging under the brand of the item manufacturer or is 21 sold in packaging that lacks identification of a brand, the producer is the person or entity that 22 manufactures that item; 23 (II) If there is no person or entity described in subsection (a)(53)(i)(A)(I) of this section, 24 the producer is the person or entity that is licensed to manufacture and sell or offer for sale to 25 consumers in the State of Rhode Island an item with packaging under the brand or trademark of 26 another manufacturer or person; 27 (III) If there is no person to which subsections (a)(53)(i)(A)(I) or (a)(53)(i)(A)(II) of this 28 section applies, the producer is the brand owner of the item; 29 (IV) If there is no person described in subsections (a)(53)(i)(A)(I) through (a)(53)(i)(A)(III) 30 of this section within the United States, the producer is the person who is the importer of record for 31 the item into the United States for use in a commercial enterprise that sells, offers for sale, or 32 distributes the item in the State of Rhode Island; or 33 (V) If there is no person described in subsections (a)(53)(i)(A)(I) through (a)(53)(i)(A)(iv) 34 LC004624 - Page 10 of 59 of this section, the producer is the person that first distributes the item in or into the State of Rhode 1 Island; 2 (B) For items sold or distributed in or into the State of Rhode Island via e -commerce, 3 remote sale, or remote distribution: 4 (I) For packaging used to directly protect or contain the item, the producer of the packaging 5 is the same as the producer identified under subsection (a)(53)(i)(A) of this section; and 6 (II) For packaging used to ship the item to a consumer, the producer of the packaging is 7 the person that packages the item to be shipped to the consumer; 8 (C) For packaging that is an item and is not included in the prior subsections, the producer 9 of the packaging is the person that first distributes the item in or into the State of Rhode Island; 10 (D) For paper products that are magazines, catalogs, telephone directories, or similar 11 publications, the producer is the publisher; 12 (E) For paper products not described in subsection (a)(53)(i)(A) of this section: 13 (I) If the paper product is sold under the manufacturer's own brand, the producer is the 14 person or entity that manufactures the paper product; 15 (II) If there is no person or entity to which subsection (a)(53)(i)(E)(I) of this section applies, 16 the producer is the person or entity that is the owner or licensee of a brand or trademark under 17 which the paper product is used in a commercial enterprise, sold, offered for sale, or distributed in 18 or into the State of Rhode Island, whether or not the trademark is registered in the State of Rhode 19 Island; 20 (III) If there is no person or entity to which subsection (a)(53)(i)(E)(I) or (a)(53)(i)(E)(II) 21 of this section applies, the producer is the brand owner of the paper product; 22 (IV) If there is no person or entity to which subsection (a)(53)(i)(E)(I), (a)(53)(i)(E)(II), or 23 (a)(53)(i)(E)(III) of this section within the United States, the producer is the person that imports the 24 paper product into the United States for use in a commercial enterprise that sells, offers for sale, or 25 distributes the paper product in the State of Rhode Island; or 26 (V) If there is no person described in subsections (a)(53)(i)(E)(I) through (a)(53)(i)(E)(IV) 27 of this subsection, the producer is the person that first distributes the paper product in or into the 28 State of Rhode Island; 29 (F) A person is the "producer" of a covered material sold, offered for sale, or distributed in 30 or into the State of Rhode Island, as defined in subsection s (a)(53)(i)(A) through (a)(53)(i)(E) of 31 this subsection, except; 32 (I) Where another person or entity has mutually signed an agreement with a producer as 33 defined in (a)(53)(i)(A) through (a)(53)(i)(E) of this section that contractually assigns responsibility 34 LC004624 - Page 11 of 59 to the person or entity as the producer, and the person or entity has joined a registered packaging 1 producer responsibility organization as the responsible producer for that covered material under 2 this chapter. If another person or entity is assigned responsibility as the producer under this 3 subsection, the producer under subsections (a)(53)(i)(A) through (a)(53)(i) (E) of this section must 4 provide written certification of that contractual agreement to the packaging producer responsibility 5 organization. The following persons or entities are not eligible to be the assigned recipient of 6 responsibility as a producer under this subsection: 7 (aa) A person or entity who produces an agricultural commodity introduced under the brand 8 or trademark of another manufacturer or person; 9 (bb) If the producer described in subsection (a)(53)(i)(A) through (a)(53)(i)(E) of this 10 subsection is a business operated wholly or in part as a franchise, the producer is the franchisor, if 11 that franchisor has franchisees that have a commercial presence within the State of Rhode Island. 12 (ii) Producer does not include: 13 (A) Government entities; or 14 (B) Registered 501(c)(3) charitable organizations and 501(c)(4) social welfare 15 organizations. 16 (53) "Producer responsibility organization" means a nonprofit corporation that is tax 17 exempt under chapter 501(c)(3) of the federal Internal Revenue Code and is set up to carry out the 18 responsibilities of either the packaging program or the recycling refund program, or both programs. 19 (54) "Recycling" means the series of activities by which material is collected, transported, 20 sorted, and processed for use in industrial feedstocks in place of virgin materials to manufacture 21 new products with minimal loss of material quality and quantity. "Recycling" does not include: 22 (i) Landfill disposal; 23 (ii) Use as alternative daily cover or any other beneficial use at a landfill; or 24 (iii) Energy recovery, energy generation, or fuel production by any means including, but 25 not limited to, combustion, incineration, pyrolysis, gasification, solvolysis, or waste-to-fuel. 26 (55) "Recycling rate" means the amount of recyclable covered material, in aggregate or by 27 individual covered materials type, delivered to responsible end markets for recycling in a calendar 28 year divided by the total amount of covered materials introduced by the relevant unit of 29 measurement and excluding covered materials that are reusable or compostable. 30 (56) "Recycling refund program" means a covered beverage container redemption program 31 that pays a per -unit refund value to consumers for covered beverage containers and collects and 32 processes covered beverage containers as described in this chapter. 33 (57) "Recycling refund advisory council" means the council established under this chapter 34 LC004624 - Page 12 of 59 for the recycling refunds program. 1 (58) "Recycling refund processing facility" means a location that is designated by the 2 recycling refund producer responsibility organization to receive, sort, and prepare beverage 3 containers collected through the system for recycling or reuse. 4 (59) "Recycling refund producer responsibility organization" means a nonprofit 5 corporation that is tax exempt under chapter 501(c)(3) of the federal Internal Revenue Code created 6 by a group of recycling refund covered beverage containers producers to implement activities under 7 this chapter. 8 (60) "Recycling refund program plan" means a program plan developed by the recycling 9 refund producer responsibility organization that is prepared and submitted to the department for 10 review and approval. 11 (61) "Redemption rate" means the number of covered beverage containers redeemed for 12 the recycling refund divided by the number of covered beverage containers sold in the State of 13 Rhode Island in a calendar year. 14 (62) "Redemption site" means a public or private place that provides, via any beverage 15 container collection mechanism, the ability to redeem a covered beverage container for which a 16 deposit was paid. 17 (63) "Refillable" means capable of refill. 18 (64) "Refill" means the continued use of a covered material by a consumer through a 19 system that is: 20 (i) Intentionally designed and marketed for repeated filling of a covered material to reduce 21 demand for new production of the covered material; 22 (ii) Supported by adequate logistics and infrastructure to provide convenient access for 23 consumers; and 24 (iii) Compliant with all applicable statutes, rules, ordinances, and other laws governing 25 health and safety from any government entity. 26 (65) "Responsible end market" means a materials market that: 27 (i) First produces and sells, transfers, or uses recycled organic product or recycled content 28 feedstock that meets the quality standards necessary to be used in the creation of new or 29 reconstituted products in a manner that protects the environment and minimizes risks to public 30 health and worker health and safety; 31 (ii) Complies with all applicable statutes, rules, ordinances, and other laws governing 32 environmental, health, safety, and financial responsibility from any government entity; 33 (iii) Possesses all requisite licenses and permits required by a federal or state agency or 34 LC004624 - Page 13 of 59 political subdivision; 1 (iv) If the market operates in a state, manages waste according to the waste management 2 goal and priority order of waste management practices stated in statute; 3 (v) Minimizes adverse impacts to environmental justice areas; and 4 (vi) Meets the minimum operational standards adopted under a packaging producer 5 program plan or recycling refunds program plan to protect the environment, public health, worker 6 health and safety, and minimize adverse impacts to socially vulnerable populations. 7 (66) "Retail establishment" means any person, corporation, partnership, business, facility, 8 vendor, organization, or individual that sells or provides merchandise, goods, or materials directly 9 to a consumer that engages in the sale of beverages that are covered beverage containers intended 10 for consumption off site. 11 (67) "Return rate" means the amount of reusable covered material or beverage containers, 12 in aggregate or by individual covered materials or covered beverage container type, collected for 13 reuse by a redemption site, producer responsibility organization, producer, or service provider in a 14 calendar year, divided by the total amount of reusable covered material or covered beverage 15 containers, in aggregate or by individual covered materials or covered beverage container type, 16 sold or distributed into the State of Rhode Island by the relevant unit of measurement in the 17 approved program plan. 18 (68) "Reusable" means capable of reuse. 19 (69) "Reuse" means the return of a covered material or covered beverage container to the 20 marketplace and the continued use of the covered material or covered beverage container by a 21 producer or service provider when the covered material or covered beverage container is: 22 (i) Intentionally designed and marketed to be used multiple times for its original intended 23 purpose without a change in form; 24 (ii) Designed for durability and maintenance to extend its useful life and reduce demand 25 for new production of the covered material or covered beverage container; 26 (iii) Supported by adequate logistics and infrastructure at a redemption site, retail location, 27 by a service provider, or on behalf of or by a producer, that provides convenient access for 28 consumers; and 29 (iv) Compliant with all applicable statutes, rules, ordinances, and other laws governing 30 health and safety from any government entity. 31 (70) "Reuse rate" means the share of units of a reusable covered material or covered 32 beverage containers sold or distributed into the State of Rhode Island in a calendar year that are 33 demonstrated and deemed reusable in accordance with an approved packaging producer program 34 LC004624 - Page 14 of 59 plan or recycling refund program plan, excluding: 1 (i) A product protected by a recognized geographic indication, appellation of origin, or 2 certification mark that legally requires the product to originate from a specific geographic region 3 located more than one hundred fifty (150) miles from the State of Rhode Island; provided that, such 4 requirement is supported by federal, state, or international law or treaty; or 5 (ii) A product which, under national or state law, must be produced in a jurisdiction located 6 more than one hundred fifty (150) miles from the State of Rhode Island and therefore cannot be 7 practically sold in a reusable container; 8 (71) "Service provider" means an entity that provides covered services for covered 9 materials or covered beverage containers. A political subdivision that provides or that contracts or 10 otherwise arranges with another party to provide covered services for covered materials within its 11 jurisdiction may be a service provider regardless of whether it provided, contracted for, or 12 otherwise arranged for similar services before the approval of the applicable producer program 13 plan. 14 (72) "Source reduction" means the design, manufacture, acquisition, purchase, or use of 15 materials or products to reduce the amount of municipal waste before it enters the municipal trash. 16 This may be accomplished through the redesign of manufacturing processes; redesign of products; 17 changes in consumers' purchasing decisions, use, and disposal habits; and backyard composting. 18 (73) "Third -party certification" means certification by an accredited independent 19 organization that a standard or process required by this chapter, or by a packaging producer program 20 plan or a recycling refund program plan approved under this chapter, has been achieved. 21 (74) "Transfer station" means a specific area where individuals may bring household 22 recyclable materials to be sorted into material -specific receptacles and is located in the State of 23 Rhode Island. 24 (75) "Unredeemed deposit" means a deposit paid by a consumer to a retailer upon purchase 25 of a covered beverage container for which no person claimed the deposit by returning the beverage 26 container to a redemption site. 27 (b) References to "this chapter" contained in chapters 19. 20, 19.21, and 19.22 of title 23, 28 may and shall be applied jointly and severally, and a reference to one may be construed as a 29 reference to any or all of the other chapters as the context indicates, except where the context clearly 30 indicates otherwise. 31 23-19.20-2. Registration of packaging producer responsibility organizations. 32 (a) Pursuant to the provisions of chapter 19.19 of title 23 upon the completion of the 33 statewide implementation analysis and final report, or January 1, 2027, whichever is earlier, the 34 LC004624 - Page 15 of 59 department shall accept applications from packaging producer responsibility organizations to 1 represent packaging and paper product producers in fulfilling the requirements of this chapter. 2 (b) The application from a packaging producer responsibility organization shall include, at 3 a minimum, the following: 4 (1) Contact information for a person responsible for implementing an approved packaging 5 producer program plan; 6 (2) A list of any member packaging and paper product producers that have entered into 7 written agreements to operate under the packaging producer program plan; 8 (3) A list of current board members and the executive director if different from the person 9 responsible for implementing the approved packaging producer program plan; and 10 (4) Documentation demonstrating adequate financial responsibility and financial controls 11 to ensure proper management of funds and payment of the registration fee and packaging and paper 12 product producer fees. 13 (c) By March 1, 2027, the department may approve, for a period not to exceed five (5) 14 years, a single packaging producer responsibility organization if the packaging producer 15 responsibility organization demonstrates that it: 16 (1) Is an independent nonprofit organization that qualifies for tax exemption under 26 17 U.S.C. § 501(c)(3) of the federal Internal Revenue Code; 18 (2) Has the ability to administer the requirements of a packaging producer program plan 19 under this chapter; 20 (3) Has a governing board consisting of packaging and paper product producers that 21 represent the diversity of packaging in the market; and 22 (4) Has adequate financial responsibility and financial controls to ensure proper 23 management of funds and payment of the registration fee required under this section. 24 (d) The department may revoke the approval of a packaging producer responsibility 25 organization if the department determines that the packaging producer responsibility organization: 26 (1) Failed to meet the collection rate or recycling rate performance targets four (4) years in 27 a row; and 28 (2) Has not made reasonable progress over this four (4) year period toward compliance. 29 (e) If the department exercises its authority under this section, then: 30 (1) The department shall set dates to restart the appointment process; and 31 (2) The previously approved packaging producer responsibility organization shall continue 32 operating until the department appoints a new recycling refund producer responsibility 33 organization. 34 LC004624 - Page 16 of 59 (f) By January 1, 2027, an individual producer may notify the department of its intent to 1 submit an individual plan for approval by the department, and comply individually with all relevant 2 requirements of this chapter. 3 (g)(1) By November 1, 2027, the packaging producer responsibility organization shall 4 submit a one-time payment to the department, in lieu of a registration fee, in an amount determined 5 by the department, to cover the previously incurred costs and future estimated costs of the 6 department under this chapter from the effective date of this chapter until the date in subsection 7 (g)(2) of this section. By August 1, 2027, the department shall provide written notice to the 8 appointed packaging producer responsibility organization of the amount of the registration fee; 9 (2) On July 1, 2028, and on each July 1 thereafter, the packaging producer responsibility 10 organization shall submit to the department a registration fee, as determined by the department. By 11 May 1, 2028, and on each May 1 thereafter, the department shall provide written notice to registered 12 packaging producer responsibility organizations of the amount of the registration fee. The 13 registration fee shall be set at an amount anticipated to meet, but not exceed the department's 14 estimate of the costs required to perform the department's duties and to otherwise administer, 15 implement, and enforce this chapter; 16 (3) On July 1, 2028, and on each July 1 thereafter, a producer that notifies the department 17 of its intent to submit an individual plan shall make payments in amounts determined by the 18 department to cover the amount anticipated to meet, but not exceed the department's estimate of 19 the costs required to perform the department's duties related to that producer's individual plan and 20 to otherwise administer, implement, and enforce the individual plan; 21 (4) The department shall annually reconcile the fees paid by a packaging producer 22 responsibility organization under this section with the actual costs incurred by the department by 23 means of credits or refunds to or additional payments required of a producer responsibility 24 organization, as applicable. 25 (h) After the first packaging producer program plan approved by the department expires, 26 the department may allow registration of more than one packaging producer responsibility 27 organization if: 28 (1) Producers of a covered materials type or a specific covered material appoint a packaging 29 producer responsibility organization; or 30 (2) Producers organize under additional packaging producer responsibility organizations. 31 (i) All fees received under this section shall be deposited in the State of Rhode Island 32 treasury and credited to the product producer responsibility account. 33 23-19.20-3. Packaging producer responsibility organization duties. 34 LC004624 - Page 17 of 59 A packaging producer responsibility organization or individual producer shall: 1 (1) Register with the department, as required under this chapter; 2 (2) Submit a packaging producer program plan, as required under this chapter; 3 (3) Implement a packaging producer program plan approved by the department under this 4 chapter; 5 (4) Forward upon receipt from the department the lists established under § 23 -19.20-7 to 6 all service providers that participate in a packaging producer program plan administered by the 7 packaging producer responsibility organization; 8 (5) Establish by September 1, 2027, an initial producer fee structure to fund the initial 9 implementation of the program, to be used until packaging producer responsibility organization has 10 an approved program plan as required under this chapter; 11 (6) Collect producer fees as required under § 23-19.20-11; 12 (7) Submit the reports required under § 23-19.20-13; 13 (8) Ensure that producers operating under a packaging producer program plan administered 14 by the packaging producer responsibility organization comply with the requirements of the 15 packaging producer program plan under § 23-19.20-9 and with this chapter; 16 (9) Expel a producer from the packaging producer responsibility organization if efforts to 17 return the producer to compliance with the plan or with the requirements of this chapter are 18 unsuccessful; 19 (10) Notify the department when a producer has been expelled; 20 (11) Consider and respond in writing within ninety (90) days to comments received from 21 the advisory council, including justifications for not incorporating advisory council 22 recommendations; 23 (12) Maintain a website with the information required under § 23-19.20-12; 24 (13) Notify the department within thirty (30) days of a change made to the contact 25 information for a person responsible for implementing the packaging producer program plan, to 26 board membership, or to the executive director; 27 (14) Assist service providers to identify, use, and expand responsible end markets; 28 (15) Contract directly with service providers and provide payments in a timely manner; 29 and 30 (16) Comply with all other applicable requirements of this chapter. 31 23-19.20-4. Packaging program advisory council. 32 (a) The packaging program advisory council is established to review all activities 33 conducted by packaging producer responsibility organizations or a producer submitting an 34 LC004624 - Page 18 of 59 individual plan under this chapter and to advise the department and packaging producer 1 responsibility organizations regarding the implementation of this chapter. 2 (b) The packaging program advisory council shall: 3 (1) Convene its initial meeting by June 1, 2027; 4 (2) Establish when, and a process by which, it will accept public comments; 5 (3) Advise on the development of packaging producer program plans, individual plans, and 6 needs assessments to help ensure they: 7 (i) Align with best practices; 8 (ii) Reflect the reality in the State of Rhode Island; and 9 (ii) Consider the needs of the State of Rhode Island; 10 (4) Submit comments to packaging producer responsibility organizations, producers 11 submitting individual plans, and to the department on any matter relevant to the administration of 12 this chapter; 13 (5) Provide written comments to the department during any rulemaking process undertaken 14 by the department; and 15 (6) Comply with all other applicable requirements of this chapter. 16 (c) By March 1, 2027, the department shall establish and appoint the initial membership of 17 the packaging program advisory council. The membership of the packaging program advisory 18 council shall consist of the following: 19 (1) Two (2) members representing manufacturers of covered materials or the State of 20 Rhode Island or national trade association representing those manufacturers; 21 (2) One member representing recycling facilities that manage covered materials; 22 (3) One member representing a waste hauler or a State of Rhode Island association 23 representing waste haulers; 24 (4) One member representing retailers of covered materials or a State of Rhode Island trade 25 association representing those retailers; 26 (5) Two (2) members representing State of Rhode Island nonprofit environmental 27 organizations; 28 (6) Two (2) members representing community -based nonprofit environmental justice 29 organizations; 30 (7) One member representing Rhode Island resource recovery corporation or another waste 31 facility that receives, and sorts covered materials and transfers them to another facility for reuse, 32 recycling, or composting; 33 (8) One member representing a waste facility that receives compostable materials for 34 LC004624 - Page 19 of 59 composting or the State of Rhode Island trade association that represents such facilities; 1 (9) One member representing a labor organization; 2 (10) Two (2) members representing an entity that develops or offers for sale covered 3 materials that are designed for reuse or refill and maintained through a reuse or refill system or 4 infrastructure or the State of Rhode Island or national trade association that represents such entities; 5 (11) Three (3) members representing local government entities; 6 (12) Two (2) members representing other interested parties or additional members of 7 interests represented, as determined by the department; and 8 (13) One member representing the department. 9 (d) Members shall serve for a term of four (4) years, except that the initial term for a 10 majority of the initial appointees shall be two (2) years so that membership terms are staggered. 11 Members may be reappointed, but may not serve more than eight (8) consecutive years. A member 12 of the advisory council appointed under subsection (c)(12) of this section serves at the pleasure of 13 the department. 14 (e) A quorum is reached when: 15 (1) A majority of packaging program advisory council member seats are filled; and 16 (2) A majority of the non -vacant packaging program advisory council member seats is 17 present. 18 (f) Action by the packaging program advisory council requires a quorum and a majority of 19 those present and voting. All members of the packaging program advisory council, except the 20 members appointed under subsection (c)(12) of this section, are voting members of the council. 21 (g) The packaging program advisory council shall meet at least two (2) times per year and 22 may meet more frequently upon ten (10) days' written notice at the request of the chair or a majority 23 of its members. 24 (h)(1) The department shall provide administrative and operating support to the packaging 25 program advisory council, and the department may contract with a third -party facilitator to assist 26 in administering the activities of the packaging program advisory council, including establishing a 27 website or landing page on the department website. 28 (2) The department shall assist the advisory council in developing policies and procedures 29 governing the disclosure or perceived conflict of interest. 30 23-19.20-5. Producer responsibilities. 31 (a) After September 1, 2027, a producer shall be a member of a packaging producer 32 responsibility organization or notify the department of their intent to submit an individual program 33 plan. 34 LC004624 - Page 20 of 59 (b) Unless submitting an individual program plan, a producer shall: 1 (1) Register with the packaging producer responsibility organization, 2 (2) Implement the requirements of the packaging producer program plan; 3 (3) Pay producer fees under § 23-19.20-11; 4 (4) Report covered material data to the packaging producer responsibility organization at 5 a frequency and by a date to be determined by the packaging producer responsibility organization: 6 (i) The total amount, by unit and weight, of each type of packaging material sold, offered 7 for sale, or distributed for sale into the State of Rhode Island by the producer in the prior calendar 8 year; and 9 (ii) All other information necessary for the producer and the packaging producer 10 responsibility organization to meet its obligations required under this chapter. 11 (c) Comply with all other applicable requirements of this chapter. 12 (d) If a producer's individual plan is approved by the department, the producer shall 13 implement the individual plan in compliance with all applicable requirements of this chapter. 14 23-19.20-6. Packaging sales restrictions. 15 (a) After July 1, 2030, no producer may introduce covered materials, either separately or 16 when used to package another product, unless the producer is a member of a packaging producer 17 responsibility organization and in compliance with the organization's plan, or is operating under an 18 approved individual plan. 19 (b) After July 1, 2032, no producer may introduce in the State of Rhode Island covered 20 materials unless covered services are provided for the covered materials through a packaging 21 program or individual plan approved by the department and the covered materials are: 22 (1) Reusable and capable of being managed through a reuse system that meets the reuse 23 rate and return rate required under this chapter; 24 (2) Capable of refill and supported by a refill system; 25 (3) Included on the recyclable covered materials list established under § 23-19.20-7; or 26 (4) Included on the compostable covered material list established under § 23-19.20-7. 27 (c) A packaging producer responsibility organization or producer operating under an 28 approved individual plan may petition the department for a two (2)-year extension to comply with 29 the requirements of this section. The department may approve the extension if the petition 30 demonstrates that market or technical issues prevent a specific covered material from being 31 considered reusable or included on the lists established under § 23 -19.20-7. The packaging 32 producer responsibility organization may petition the department for additional annual extensions, 33 if the packaging producer responsibility organization demonstrates that market or technical issues 34 LC004624 - Page 21 of 59 preventing compliance persist. 1 23-19.20-7. Packaging program department responsibilities. 2 The department shall: 3 (1) Appoint the initial membership of the packaging program advisory council as required 4 under this chapter; 5 (2) Provide administrative and operating support to the packaging program advisory 6 council; 7 (3) Consult on the preliminary needs assessment and needs assessment updates that the 8 packaging producer responsibility organization conducts, and modify requirements for needs 9 assessments as it deems appropriate; 10 (4) Review and determine whether to approve a needs assessment according to this chapter; 11 (5) Review and determine whether to approve packaging producer program plans, 12 individual plans, and amendments to plans according to § 23-19.20-9; 13 (6) Establish requirements for a recycling rate, composting rate, reuse rate, return rate, 14 source reduction, and postconsumer recycled content, according to the requirements of this chapter; 15 (7) Generate, in consultation with the packaging producer responsibility organization, a list 16 of covered materials determined to be recyclable or compostable in the State of Rhode Island, using 17 the following criteria: 18 (i) Current availability of recycling and composting collection services; 19 (ii) Recycling and composting processing infrastructure; 20 (iii) Capacity and technology for sorting covered materials; 21 (iv) Whether a covered material is of a type and form that is regularly sorted and aggregated 22 into defined streams for recycling processes or is included in a relevant Institute of Scrap Recycling 23 Industries specification or its successors; 24 (v) Availability of responsible end markets; 25 (vi) Presence and amount of processing residuals, contamination, and additives of high 26 concern; 27 (vii) Quantity of covered material estimated to be available and recoverable; and 28 (viii) Projected future conditions for the criteria in this subsection; 29 (8) Establish a process by which the department will consider adding to the recyclable or 30 compostable list in subsection (7) of this section new materials as proposed by the packaging 31 producer responsibility organization in a program plan; 32 (9) Establish a process by which a packaging and paper product producer may request the 33 department classify one or more types of packaging or products as an exempt material if the 34 LC004624 - Page 22 of 59 department determines that a specific federal or State of Rhode Island health and safety requirement 1 prevents the packaging from being made reusable, recyclable, or compostable, with each 2 classification determination lasting no more than two (2) years with the ability to be renewed; 3 (10) Post on the department's website: 4 (i) The most recent registration materials submitted by the packaging producer 5 responsibility organization; 6 (ii) A list of registered service providers; 7 (iii) The most recent packaging program needs assessments; 8 (iv) Any packaging plan or amendment submitted by a packaging producer responsibility 9 organization or producer that is in draft form during the public comment period; 10 (v) The most recent recyclable or compostable covered lists established as required under 11 this section. 12 (vi) The list of exempt materials as defined in this chapter and covered materials exempt 13 from performance targets as approved in the packaging producer program plan; 14 (vii) Links to producer responsibility organization websites; 15 (viii) Comments of the public, advisory council, and producer responsibility organizations 16 on packaging producer plans and needs assessments, and, if any, the responses of the department 17 to those comments; and 18 (ix) Links to adopted rules implementing this chapter; 19 (11) Review and determine whether to approve the selection of independent auditors to 20 perform an annual financial audit of each producer responsibility organization; and 21 (12) Adopt any regulations necessary to implement this chapter. 22 23-19.20-8. Packaging program needs assessments. 23 (a) By June 1, 2028, the packaging producer responsibility organization shall complete an 24 initial needs assessment, and provide an updated needs assessment every five (5) years thereafter. 25 (b)(1) An initial needs assessment, and all subsequent updates, shall include at least the 26 following: 27 (i) An evaluation of: 28 (A) Existing source reduction, refill, reuse, recycling, and composting capacity and 29 infrastructure, as applicable, for each covered materials type, including collection rates, recycling 30 rates, composting rates, reuse rates, and return rates, as applicable, for each covered materials type; 31 (B) Current recycling rates, composting rates, reuse rates, and return rates for covered 32 materials; and 33 (C) The extent to which postconsumer recycled content, by the best estimate, is or could 34 LC004624 - Page 23 of 59 be incorporated into each covered materials type, as applicable, including a review of market and 1 technical barriers to incorporating postconsumer materials into covered materials and of whether 2 for certain covered materials more recycled content has a net negative environmental impact, with 3 the evaluation for plastics, including a separate evaluation of rigid plastics by resin type and an 4 evaluation for film and flexible plastics; 5 (2) An evaluation of covered materials in the disposal, recycling, and composting streams 6 to determine the covered materials types and amounts within each stream, using new studies 7 conducted by the department or publicly available and applicable studies; 8 (3) An evaluation of potential reuse, return, recycling, and composting rates for each 9 covered materials type that could reasonably be accomplished within a five (5) year time frame in 10 multiple units of measurement including, but not limited to, unit-based, weight-based, and volume-11 based; 12 (4) Recommended collection methods by covered materials type to maximize collection 13 efficiency, maximize feedstock quality, and optimize service and convenience for collection of 14 covered materials to be considered or that are included on lists established; 15 (5) An evaluation of potential plans and metrics for how to measure progress in achieving 16 performance targets; 17 (6) An inventory of the current system, including: 18 (i) Tons of collected covered materials; 19 (ii) Capacity at recycling facilities, compost facilities, drop-off collection sites, and transfer 20 stations; 21 (iii) Infrastructure, capacity, and performance for the existing covered services for covered 22 materials operating in the State of Rhode Island; 23 (iv) Availability and cost of covered services for covered materials to covered entities and 24 any other location where covered materials are introduced, including identification of disparities in 25 the availability of these services in environmental justice areas compared with other areas and 26 proposals for reducing or eliminating those disparities; 27 (7) An evaluation of investments needed to increase source reduction, reuse, return, 28 recycling, and composting rates of covered materials to meet the proposed performance targets in 29 § 23-19.20-9; 30 (8) An assessment of the viability and robustness of markets for recyclable covered 31 materials and the degree to which these markets can be considered responsible end markets; 32 (9) An assessment of the level and causes of contamination of source-separated recyclable 33 materials, source -separated compostable materials and collected reusables, and the impacts of 34 LC004624 - Page 24 of 59 contamination on service providers, including the cost to manage this contamination; and 1 (10) Recommendations for meeting the criteria for an alternative collection program as 2 established in this chapter, and in every subsequent needs assessment after the initial needs 3 assessment, a review of existing alternative collection programs for each covered material listed to 4 determine if the program is meeting the criteria in this chapter. 5 (11) The department may modify what the packaging producer responsibility organization 6 is required to include in the initial needs assessment and the needs assessment updates. 7 (c) In conducting a needs assessment, the packaging producer responsibility organization 8 shall: 9 (1) Initiate a consultation process to obtain recommendations from the packaging program 10 advisory council, political subdivisions, service providers and other interested parties regarding the 11 type and scope of information that should be collected and analyzed in the needs assessment 12 required by § 23-19.20-8; 13 (2) Contract with a third party who is not a producer, a packaging producer responsibility 14 organization, or a member of the advisory council to conduct the needs assessment; and 15 (3) Prior to finalizing the needs assessment, make the draft needs assessment available for 16 comment by the advisory council, the department, and the public. 17 (d)(1) A service provider or other person with data or information necessary to complete a 18 needs assessment shall provide the data or information to the packaging producer responsibility 19 organization contractor conducting the needs assessment upon request. 20 (2) The packaging producer responsibility organization contractor conducting the needs 21 assessment shall aggregate and anonymize the data or information, excluding location data 22 necessary to assess needs, received from all parties under subsection (d)(1) of this section. 23 (e)(1) Within one hundred twenty (120) days of the completion of any needs assessment, 24 the department shall review the needs assessment and either approve, modify, or deny it. 25 (2) In making a determination under subsection (a) of this section, the department shall 26 confirm: 27 (i) All requirements of this section are met; and 28 (ii) The needs assessment was produced with sufficient rigor and using an appropriate, 29 evidence-based methodology, ensuring accuracy, reliability, and alignment with established best 30 practices. 31 (3) If the department denies or requests additional information for a needs assessment, the 32 department shall provide the packaging producer responsibility organization with the reasons, in 33 writing, that the needs assessment does not meet the requirements of this section. The packaging 34 LC004624 - Page 25 of 59 producer responsibility organization has sixty (60) days from the date that the rejection or request 1 for additional information is received to submit to the department any revisions or additional 2 information necessary for the approval of the needs assessment. The department shall review and 3 approve or disapprove the needs assessment no later than sixty (60) days after the date the 4 department receives the revisions or additional information. 5 (4) A packaging producer responsibility organization may resubmit a needs assessment to 6 the department on not more than two (2) occasions. If after the second resubmission, the department 7 determines that the needs assessment does not meet the plan requirements of this chapter, the 8 packaging producer responsibility organization shall pay a service provider to complete work in 9 accordance with a scope of work provided by the department that will bring the needs assessment 10 into compliance with this section. 11 23-19.20-9. Packaging producer program plan. 12 (a)(1) By January 1, 2029, and every five (5) years thereafter, a packaging producer 13 responsibility organization shall submit a packaging producer program plan to the department that 14 describes the proposed operation by the organization of programs to fulfill the requirements of this 15 chapter and that incorporates the findings and results of needs assessments. If there is more than 16 one packaging producer responsibility organization, they shall coordinate to submit a single 17 packaging producer program plan. Once approved, a packaging producer program plan remains in 18 effect for five (5) years, as amended, or until a subsequent packaging producer program plan is 19 approved. 20 (2) By January 1, 2029, and every five (5) years thereafter, an individual producer that has 21 notified the department of its intent to submit an individual plan shall submit an individual plan to 22 the department that describes the proposed operation by the producer of a program to fulfill the 23 requirements of this chapter and that incorporates the findings and results of needs assessments. 24 Once approved, an individual plan remains in effect for five (5) years, as amended, or until a 25 subsequent individual plan is approved. 26 (3) By July 1, 2030, or within six (6) months of plan approval, whichever is later, a 27 packaging producer responsibility organization or individual producer shall implement a packaging 28 producer program plan or individual plan. Subsequent packaging producer program plans shall be 29 implemented within six (6) months of approval by the department. 30 (b) A packaging producer responsibility organization or individual producer shall submit a 31 draft packaging producer program plan, individual plan, or draft amendment to the advisory council 32 prior to submitting the draft plan or draft amendment to the department and shall, prior to 33 submission of the draft plan or draft amendment to the department, respond to advisory council 34 LC004624 - Page 26 of 59 comments and recommendations received within sixty (60) days of providing the draft program 1 plan or draft amendment to the advisory council and indicate whether those comments or 2 recommendations were accepted or rejected. 3 (c) A draft packaging producer program plan or individual plan shall include at a minimum: 4 (1) Proposed collection rate and recycling rate performance targets as applicable to each 5 covered materials type to be accomplished within a five (5) year period; 6 (2) Proposed performance targets for composting, source reduction, reuse, and return that: 7 (i) Meet the requirements set by the department in § 23-19.20-9(a); 8 (ii) Are informed by the latest needs assessment and the most recent State of Rhode Island 9 solid waste management plan; 10 (3) Proposed performance targets for post-consumer recycled content for covered materials 11 that do not have sufficient end -markets, as well as any other covered materials the packaging 12 producer responsibility organization deems appropriate; 13 (4) A description of the methods of collection, how collection service convenience metrics 14 shall be met, and processing infrastructure and covered services to be used for each covered 15 materials type at covered entities, at a minimum, and how these shall meet the performance targets 16 established for covered materials: 17 (i) Included on the recyclable list established in this chapter; 18 (ii) Included on the compostable list established in this chapter; 19 (iii) That are reusable covered materials managed through a reuse system; and 20 (iv) That are capable of refill and managed through a refill system; 21 (5) Proposals for exemptions from performance targets for covered materials that cannot 22 be source reduced or made reusable, recyclable, or compostable due to federal or State of Rhode 23 Island health and safety requirements, identifying the specific federal or State of Rhode Island 24 requirements and their impact on the covered materials; 25 (6) A description of how, for each covered materials type, the producer responsibility 26 organization shall measure recycling rates, reuse rates, return rates, composting rates, and the 27 inclusion of postconsumer recycled content, including the relevant unit of measurement; 28 (7) Third-party certifications as required by the department or voluntarily undertaken; 29 (8) A budget identifying funding needs for each of the plan's five (5) calendar years, 30 producer fees, a description of the process used to calculate the fees, and an explanation of how the 31 fees meet the requirements of this chapter; 32 (9)(i) As part of the proposed budget, the producer responsibility organization shall propose 33 a percentage of its overall budget sufficient to achieve the proposed performance targets for 34 LC004624 - Page 27 of 59 reusable and refillable packaging; 1 (ii) For the first program plan, the percentage of the packaging producer responsibility 2 organization's budget that must be dedicated to investment in and support for producer's use of 3 reusable and refillable packaging may not be less than five percent (5%). Upon submission of a 4 packaging producer responsibility organization's subsequent program plans the budget for reusable 5 and refillable packaging may be less than three percent (3%) if the resulting expenditures will be 6 sufficient to achieve the approved reuse and return rates for the program; 7 (10) A description of infrastructure investments, including goals and outcomes and a 8 description of how the process to offer and select opportunities will be conducted in an open, 9 competitive, and fair manner; how it will address gaps in the system not met by service providers; 10 and potential financial and legal instruments to be used; 11 (11) An explanation of how the program will be paid for by the producer responsibility 12 organization through fees from producers, without any new or additional consumer -facing charge 13 to members of the public, businesses, service providers, the State of Rhode Island or any political 14 subdivisions, or any other person who is not a producer, unless the charge is: 15 (i) A deposit made in connection with a product's refill, reuse, or recycling that can be 16 redeemed by a consumer; or 17 (ii) A charge for service by a service provider, regardless of whether registered; 18 (12) An explanation of how the packaging producer responsibility organization will 19 coordinate with the Rhode Island resource recovery corporation on implementation; 20 (13) A description of activities to be undertaken by the packaging producer responsibility 21 organization during each year to: 22 (i) Foster the improved design of covered materials in accordance with the design attributes 23 identified in this chapter on packaging and producer fee setting to reduce environmental and human 24 health impacts; 25 (ii) Provide funding to expand and increase the convenience of source reduction, reuse, 26 refill, collection, recycling, and composting services to covered entities; 27 (iii) Provide for contract rates to service providers for State of Rhode Island coverage of 28 covered services at an optimal level of convenience and service for covered materials on the list 29 established, to covered entities, at a minimum; 30 (iv) Monitor to ensure that postconsumer materials are delivered to responsible end 31 markets; and 32 (v) Expand responsible end markets and incentivize the purchase of recycled content from 33 only responsible markets that are domestic or North American; 34 LC004624 - Page 28 of 59 (14) Include terms and conditions for service agreements with service providers and 1 templates of the service agreements; 2 (15) Operational standards for service providers as applicable to the service provided 3 including, but not limited to: 4 (i) Accepting all covered materials on the recyclable or compostable list required under 5 this chapter; 6 (ii) Labor standards and safety practices including, but not limited to, safety programs, 7 health benefits, and living wages; and 8 (iii) Meets operating standards, such as capture rates, residual rates, and bale quality; 9 (16) A description of how the packaging producer responsibility organization shall treat 10 and protect nonpublic data submitted by service providers; 11 (17) A description of how the packaging producer responsibility organization shall provide 12 technical assistance to service providers in order to assist them in delivering covered materials to 13 responsible end markets; 14 (18) Minimum operational standards to protect the environment, public health, worker 15 health and safety, and minimize adverse impacts to socially vulnerable populations; 16 (19) A description of how the packaging producer responsibility organization shall increase 17 public awareness, educate, and complete outreach activities that include culturally responsive 18 materials and methods and evaluate the efficacy of these efforts; 19 (20) Proposed alternative collection programs; 20 (21) A description of how producers can purchase postconsumer materials from service 21 providers at market prices if the producer is interested in obtaining recycled feedstock to achieve 22 minimum postconsumer recycled content performance targets; 23 (22) A list of additives of high concern and the credible scientific evidence forming the 24 basis for this list; 25 (23) A discussion of technical assistance provided to producers regarding additives of high 26 concern in covered materials and actions taken by producers to reduce additives of high concern in 27 covered materials; and 28 (24) A summary of consultations held with the advisory council and other interested parties 29 to provide input to the packaging producer program plan, a list of recommendations that were 30 incorporated into the packaging producer program plan as a result, and a list of rejected 31 recommendations and the reasons for rejection; 32 (25) In approving the performance targets in this section, the department shall consider: 33 (i) The findings of the needs assessment; 34 LC004624 - Page 29 of 59 (ii) Goals of the most recent State of Rhode Island solid waste management plan; 1 (iii) With source reduction, the aim of eliminating unnecessary use of material while not 2 compromising health or safety; 3 (iv) With postconsumer recycled content, the net environmental impact of using more 4 postconsumer material and the ability of packaging to include recycled content given health 5 considerations, safety considerations, or its unique properties; and 6 (v) With reuse rate, whether reusable containers shall be reused enough times to have a 7 lower environmental impact than the single-use alternatives. 8 (d)(1) The department shall review and approve, deny, or request additional information 9 for packaging producer program plans, individual plans, or draft plan amendments no later than 10 one hundred twenty (120) days after the date the department receives it from a packaging producer 11 responsibility organization. The department shall post a draft plan or draft amendment on the 12 department's website and allow public comment for no less than forty -five (45) days before 13 approving, denying, or requesting additional information on a draft plan or draft amendment. 14 (2) In reviewing draft plans, the department shall consider, among other factors, the 15 following: 16 (i) Feasibility; 17 (ii) Advisory council feedback; 18 (iii) Cost; 19 (iv) Goals and plans in the Rhode Island solid waste management plan; 20 (v) Increasing reuse, including the proposed percentage of budget funds proposed by the 21 PRO that must be dedicated to reuse and refill; and 22 (vi) Reducing unnecessary use of materials. 23 (3) If the department denies or requests additional information for a draft plan or draft 24 amendment, the department shall provide the packaging producer responsibility organization or 25 producer with the reasons, in writing, that the plan or plan amendment does not meet the plan 26 requirements in this chapter. The packaging producer responsibility organization or producer has 27 sixty (60) days from the date that the rejection or request for additional information is received to 28 submit to the department any revisions or additional information necessary for the approval of the 29 draft plan or draft amendment. The department shall review and approve or disapprove the draft 30 plan or draft amendment no later than sixty (60) days after the date the department receives the 31 revisions or additional information. 32 (4) A packaging producer responsibility organization or producer may resubmit a draft plan 33 or draft amendment to the department on not more than two (2) occasions. If after the second 34 LC004624 - Page 30 of 59 resubmission, the department determines that the draft plan or draft amendment does not meet the 1 plan requirements of this chapter, the department shall modify the draft plan or draft amendment 2 as necessary for it to meet the requirements of this chapter and approve it. 3 23-19.20-10. Packaging performance target methodology. 4 (a)(1) For purposes of determining whether recycling performance targets are being met, 5 except as modified by the department, the packaging producer program plan or individual plan shall 6 provide a methodology for measuring the amount of recycled material at the point at which material 7 leaves a recycling facility and shall account for: 8 (i) Levels of estimated contamination documented by the facility; and 9 (ii) Any exclusions for fuel or energy capture. 10 (2) For purposes of determining whether reuse and return performance targets are being 11 met, a packaging producer program plan or individual plan shall provide a methodology for 12 measuring the amount of reusable covered materials at the point at which reusable covered 13 materials meet the following criteria as demonstrated by the producer and approved by the 14 department: 15 (i) Whether the average minimum number of cycles of reuses within a recognized reuse 16 system has been met based on the number of times an item shall be reused for it to have lower 17 environmental impacts than the single-use alternatives of those items; and 18 (ii) Whether the demonstrated or research -based anticipated return rate of the covered 19 material to the reuse system has been met. 20 (3) For purposes of determining whether postconsumer recycled content performance 21 targets are being met, a packaging producer program plan or individual plan shall provide a 22 methodology for measuring postconsumer recycled content across all producers for a covered 23 materials type where producers may determine their postconsumer recycled content based on their 24 United States market territory if State of Rhode Island -specific postconsumer recycled content is 25 impractical to determine. 26 (4) For other performance targets, the producer responsibility organization or individual 27 plan shall propose methodologies for review and approval as part of the packaging producer 28 program plan and recycling refund producer program plan. 29 (b)(1) A packaging producer responsibility organization shall implement an alternative 30 collection program for covered materials included on an alternative collection list established under 31 this chapter that: 32 (i) Provides year -round, convenient, collection opportunities across the State of Rhode 33 Island, including at least one drop-off collection site located in each municipality; 34 LC004624 - Page 31 of 59 (ii) Provides tiers of service for collection, convenience, number of drop -off collection 1 sites, and additional collection systems based on: 2 (A) Municipal population size; 3 (B) Municipal population density; 4 (iii) Ensures materials are sent to responsible end markets; 5 (iv) Uses education and outreach strategies that can be expected to significantly increase 6 consumer awareness of the program throughout the State of Rhode Island; and 7 (v) Accurately measures the amount of each covered material collected and the applicable 8 performance target. 9 (c) The department, in consultation with an advisory council, may require that a packaging 10 producer responsibility organization, recycling refund producer responsibility organization, or 11 individual producer operating an individual plan obtain and pay for a third -party certification of 12 any activity or achievement required by this chapter if a third-party certification is readily available, 13 deemed applicable, and of reasonable cost. The department shall provide a producer responsibility 14 organization or individual producer with notice of at least six (6) months prior to requiring use of 15 third-party certification. 16 23-19.20-11. Producer fees. 17 (a) By September 1, 2028, each producer that is a member of the packaging producer 18 responsibility organization shall submit an initial fee to the packaging producer responsibility 19 organization, as determined by the initial fee schedule developed under § 23-19.19-3(5). 20 (b)(1) Beginning January 1, 2030, a packaging producer responsibility organization shall 21 annually collect a fee from each member producer that shall: 22 (i) Vary based on the total amount of covered materials each producer introduces in the 23 prior year calculated on a per-unit basis, such as per ton, per item, or another unit of measurement; 24 (ii) Reflect the program costs for each covered materials type, net of commodity value for 25 that covered materials type, as well as allocated fixed costs that do not vary based on covered 26 materials type; 27 (iii) Create incentives to reduce environmental impacts, which shall include: 28 (A) Reducing the amount of: 29 (I) Packaging per individual covered material that is necessary to efficiently deliver a 30 product without damage or spoilage and without reducing its ability to be recycled; 31 (II) Paper used to manufacture individual paper products; and 32 (III) Additives of high concern; 33 (B) Increasing: 34 LC004624 - Page 32 of 59 (I) The amount of covered materials managed in a reuse system that are reused the number 1 of times needed to have lower environmental impacts than the single -use alternatives of those 2 items; and 3 (II) Increasing the proportion of postconsumer material in covered materials while 4 considering technical limitations and net environmental impact of using more postconsumer 5 material; and 6 (C) Enhancing the recyclability or compostability of a covered material; 7 (iv) Discourage using materials and design attributes in covered materials whose 8 environmental impacts and human health impacts can be reduced by the methods listed within this 9 section; and 10 (v) Generate revenue sufficient to pay in full: 11 (A) The required fees, including both one-time and annual registration fees required under 12 § 23- 19.20-2(f); 13 (B) Financial obligations to complete activities described in an approved packaging 14 producer program plan, including payments to service providers; 15 (C) The operating costs of the producer responsibility organization; and 16 (D) For establishment and maintenance of a financial reserve that is sufficient to operate 17 the program in a fiscally prudent and responsible manner. 18 (2) A packaging producer responsibility organization shall not charge de minimis 19 producers an annual fee. 20 (3) Fees for reusable and refillable packaging: 21 (i) Shall be lower than fees for single use packaging for the first two (2) program plan 22 periods, after which time the producer responsibility organization may propose an alternative 23 incentive for reusable and refillable packaging; and 24 (ii) Shall incentivize producers to achieve maximum return rates for reusable and refillable 25 packaging. 26 (c) Revenue collected under this section that exceeds the amount needed to pay the costs 27 described herein, shall be used to improve or enhance program outcomes or to reduce producer fees 28 according to provisions of an approved packaging producer program plan. 29 (d) Fees collected under this section may not be used for lobbying. 30 23-19.20-12. Packaging producer responsibility organization website requirements. 31 (a) A packaging producer responsibility organization shall maintain a website that uses best 32 practices for accessibility. 33 (b) The packaging producer responsibility organization website shall contain, at a 34 LC004624 - Page 33 of 59 minimum: 1 (1) Information regarding a process that members of the public can use to contact the 2 relevant producer responsibility organization with questions; 3 (2) The draft and approved packaging producer program plans and any draft and approved 4 amendments; 5 (3) Annual reports submitted to the department; 6 (4) A link to related administrative rules implementing this chapter; 7 (5) The names of producers and brands that are not in compliance with this chapter; and 8 (6) A list, updated at least monthly, of all member producers operating under the packaging 9 producer program plan or recycling refund program plan. 10 (c) In addition to the requirements in subsection (b) of this section, the packaging producer 11 responsibility organization website shall have: 12 (1) A directory of all service providers operating under the packaging producer program 13 plan administered by the packaging producer responsibility organization, grouped by location or 14 political subdivision, and information about how to request service; 15 (2) Information for State of Rhode Island residents on what to do with materials on the 16 recyclable and compostable lists as well as information on how to return reusable covered materials 17 and covered beverage containers; 18 (3) The list of exempt materials as defined in this chapter and covered materials exempt 19 from performance targets as approved in the packaging producer program plan; 20 (4) Current approved performance targets and past performance targets and a summary of 21 whether these were met; 22 (5) Current and all past needs assessments; and 23 (6) Education materials on source reduction, reuse, recycling, and composting for 24 producers and the general public. 25 23-19.20-13. Packaging program reporting. 26 (a)(1) By July 1, 2031, and annually thereafter, a packaging producer responsibility 27 organization or producer operating under an approved individual plan shall submit a report to the 28 department that contains, at a minimum, the following information for the previous calendar year: 29 (i) The total amount of covered materials introduced, by each covered materials type, by 30 both weight and number of units; 31 (ii) Progress made toward the performance targets reported in the same units used to 32 establish producer fees and reported for the State of Rhode Island, including: 33 (A) The amount of covered materials successfully source reduced, reused, recycled, and 34 LC004624 - Page 34 of 59 composted by covered materials type and the strategies or collection method used; and 1 (B) Information about third-party certifications obtained; 2 (C) Where performance targets are not being met, an explanation of why the packaging 3 producer responsibility organization believes the targets are not being met, and how the packaging 4 producer responsibility organization intends to achieve performance targets; 5 (iii) The total cost to implement the program and a detailed description of program 6 expenditures by category, including: 7 (A) The total amount of producer fees collected; 8 (B) A description of infrastructure investments made; and 9 (C) A breakdown of payments by covered services, covered entities, and regions of the 10 State of Rhode Island; 11 (iv) A copy of a financial audit of program operations conducted by an independent auditor 12 approved by the department that meets the requirements of the Financial Accounting Standards 13 Board's Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958), as amended; 14 (v) A description of program performance problems that emerged in specific locations and 15 efforts taken or proposed by the producer responsibility organization to address them; 16 (vi) A description of public awareness, education, and outreach activities undertaken, 17 including any evaluations conducted of their efficacy; 18 (vii) A summary of consultations held with the advisory council and how any feedback 19 was incorporated into the report as a result, together with a list of rejected recommendations and 20 the reasons for rejection; 21 (viii) A list of producers found to be out of compliance with this chapter and actions taken 22 by the producer responsibility organization to return producers to compliance, and notification of 23 any producers that are no longer participating in the producer responsibility organization or have 24 been expelled due to their lack of compliance; 25 (ix) Proposed amendments to the packaging producer program plan to improve program 26 performance or reduce costs, including changes to producer fees, infrastructure investments, or 27 contract rates; 28 (x) Recommendations for additions or removal of covered materials to or from the 29 recyclable or compostable covered materials lists developed under this chapter; and 30 (xi) Information requested by the department to evaluate the effectiveness of the program 31 as it is described in the packaging producer program plan and to assist with determining compliance 32 with this chapter. 33 (2) If there is more than one packaging producer responsibility organization, they shall 34 LC004624 - Page 35 of 59 coordinate to submit a single annual report. 1 (3) Every fourth year after a packaging producer program plan or individual plan is 2 approved by the department, a performance audit of the program shall be completed by the 3 packaging producer responsibility organization or individual producer operating an approved 4 individual plan. The performance audit shall conform to audit standards established by the United 5 States Government Accountability Office; the National Association of State Auditors, 6 Comptrollers, and Treasurers; or another nationally recognized organization approved by the 7 department. 8 (b) A packaging producer responsibility organization or individual producer operating an 9 individual plan that fails to meet a performance target required under this chapter or approved in a 10 packaging producer program plan or individual plan shall, within ninety (90) days of filing an 11 annual report under this section, file with the department an explanation of the factors contributing 12 to the failure and propose an amendment to the packaging producer program plan or individual plan 13 specifying changes in operations that the packaging producer responsibility organization, recycling 14 refund producer responsibility organization, or individual producer will make that are designed to 15 achieve the performance targets. 16 (c) If the approved reuse or return rate targets have not been met, the packaging producer 17 responsibility organization or individual producer shall increase the proportion of the overall 18 program budget dedicated to reuse and refill for the following program year. 19 23-19.20-14. Packaging producer responsibility program account. 20 (a) The packaging producer responsibility account is established as a separate restricted 21 receipt account in the State of Rhode Island treasury department established pursuant to the 22 provisions of chapter 10 of title 42. 23 (b) Appropriations and transfers to the account and fees collected shall be credited to the 24 account. Earnings, such as interest, dividends, and any other earnings arising from assets of the 25 account, shall be credited to the account. Money remaining in the account at the end of a fiscal year 26 does not revert to the general fund but remains in the account until expended. 27 (c) Money from the account is appropriated to the department to pay the reasonable costs 28 of the department to administer this chapter. 29 CHAPTER 19.21 30 EXTENDED PRODUCER RESPONSIBILITY FOR PACKAGING AND PAPAER ACT 31 23-19.21-1. Registration of recycling refund producer responsibility organization. 32 (a)(1) By January 1, 2027, the department shall accept applications from recycling refund 33 producer responsibility organizations to represent beverage producers in fulfilling the requirements 34 LC004624 - Page 36 of 59 of this chapter. 1 (2) By March 1, 2027, the department may approve, for a period not to exceed five (5) 2 years, a single recycling refund producer responsibility organization if the recycling refund 3 producer responsibility organization demonstrates that it: 4 (i) Is an independent nonprofit organization that qualifies for tax exemption under 26 5 U.S.C. § 501(c)(3) of the federal Internal Revenue Code; 6 (ii) Has the ability to administer the requirements of a recycling refund program plan under 7 this chapter; 8 (iii) Has a governing board consisting of beverage producers that represent the diversity of 9 beverage containers in the market; 10 (iv) Has adequate financial responsibility and financial controls to ensure proper 11 management of funds and payment of the registration fee required under this section; and 12 (v) Meets any other reasonable requirements set by the department. 13 (b) By January 1, 2027, an individual beverage producer may notify the department of its 14 intent to submit an individual plan for approval by the department, and comply individually with 15 all relevant requirements of this chapter. 16 (c)(1) By November 1, 2027, the recycling refund producer responsibility organization 17 shall submit a one -time payment to the department, in lieu of a registration fee, in an amount 18 determined by the department, to cover the previously incurred costs and future estimated costs of 19 the department under this chapter from the effective date of this chapter through paying the annual 20 registration fee required. By August 1, 2027, the department shall provide written notice to 21 registered packaging producer responsibility organization of the amount of the registration fee. 22 (2) On July 1, 2028, and on each July 1 thereafter, the recycling refund producer 23 responsibility organization shall submit to the department a registration fee, as determined by the 24 department. By May 1, 2028, and on each May 1 thereafter, the department shall provide written 25 notice to the registered recycling refund producer responsibility organization of the amount of the 26 registration fee. The registration fee shall be set at an amount anticipated to in the aggregate meet, 27 but not exceed the department's estimate of the costs required to perform the department's duties 28 and to otherwise administer, implement, and enforce this chapter for the twelve (12) months after 29 the registration date. Enforcement activities by the department shall include measures to identify 30 and enforce against fraudulent activity. 31 (3) On July 1, 2028, and on each July 1 thereafter, a beverage producer that notifies the 32 department of its intent to submit an individual plan shall make payments in amounts determined 33 by the department to cover the amount anticipated to meet, but not exceed the department's estimate 34 LC004624 - Page 37 of 59 of the costs required to perform the department's duties related to that beverage producer's 1 individual plan and to otherwise administer, implement, and enforce the individual plan; 2 (4) The department shall annually reconcile the fees paid by a recycling refund producer 3 responsibility organization under this subsection with the actual costs incurred by the department 4 by means of credits or refunds to or additional payments required of a producer responsibility 5 organization, as applicable. 6 (d) All fees received under this section shall be deposited in the state treasury and credited 7 to the recycling refund program account. 8 (e)(1) The department may revoke the approval of the recycling refund producer 9 responsibility organization if the department determines that the recycling refund producer 10 responsibility organization: 11 (i) Failed to meet the redemption rate targets four (4) years in a row; and 12 (ii) Has not made reasonable progress over this four (4) year period toward compliance. 13 (2) If the department exercises its authority under subsection (a) of this section, then: 14 (i) The department shall set dates to restart the appointment process; and 15 (ii) The previously approved recycling refund producer responsibility organization shall 16 continue operating until the department appoints a new recycling refund producer responsibility 17 organization. 18 23-19.21-2. Recycling refund producer responsibility organization duties. 19 A recycling refund producer responsibility organization shall: 20 (1) Register with the department and pay the department fees, as required pursuant to § 23-21 19.20-1; 22 (2) Submit a recycling refund producer plan to the department, as required under this 23 chapter; 24 (3) Implement recycling refund producer plans approved by the department under this 25 section; 26 (4) Establish by September 1, 2027, an initial beverage producer fee structure to fund the 27 initial implementation of the program, to be used until the recycling refund producer responsibility 28 organization has an approved program plan as required under this chapter; 29 (5) Collect fees from registered beverage producers; 30 (6) Submit the reports required under this chapter; 31 (7) Ensure that beverage producers operating under a recycling refund program plan 32 administered by the recycling refund producer responsibility organization comply with the 33 requirements of the recycling refund program plan and with this chapter; 34 LC004624 - Page 38 of 59 (8) Expel a beverage producer from the recycling refund producer responsibility 1 organization if efforts to return the beverage producer to compliance with the plan or with the 2 requirements of this chapter are unsuccessful; 3 (9) Notify the department when a beverage producer has been expelled; 4 (10) Consider and respond in writing within ninety (90) days to comments received from 5 the advisory council, including justifications for not incorporating advisory council 6 recommendations; 7 (11) Maintain a website with the information required under § 23-19.20-10; 8 (12) Notify the department within thirty (30) days of a change made to the contact 9 information for a person responsible for implementing the recycling refund program plan, to board 10 membership, or to the executive director; 11 (13) Contract directly with service providers and provide payments in a timely manner; 12 and 13 (14) Comply with all other applicable requirements of this chapter. 14 23-19.21-3. Recycling refund advisory council. 15 (a) The recycling refund advisory council is established to review all activities conducted 16 by recycling refund producer responsibility organizations under this chapter and to advise the 17 department and recycling refund producer responsibility organizations regarding the 18 implementation of this chapter. 19 (b) The recycling refund advisory council shall: 20 (1) Convene its initial meeting by July 1, 2027; 21 (2) Establish when and a process by which it will accept public comments; 22 (3) Review the recycling refund program plan and provide comments to the recycling 23 refund producer responsibility organization, prior to the draft being issued as an official draft for 24 public comment, to ensure the recycling refund program plan: 25 (i) Aligns with best practices; 26 (ii) Reflects the reality in the State of Rhode Island; and 27 (iii) Considers the needs of the State of Rhode Island; 28 (4) Review program reports and audits and raise issues for recycling refund producer 29 responsibility organization follow-up or department enforcement action; 30 (5) Review annual reports and provide comments to the department; 31 (6) Ensure that the recycling refund producer responsibility organization and department 32 are considering a broad range of perspectives in developing recycling refund program plans and in 33 implementing programs. 34 LC004624 - Page 39 of 59 (c)(1) By March 1, 2027, the department shall establish and appoint the initial membership 1 of the recycling refund advisory council. The membership of the recycling refund advisory council 2 shall consist of representatives of the following: 3 (i) Two (2) members representing a local government entity; 4 (ii) One member representing a retailer, with a preference for a retailer that hosts beverage 5 container collection mechanisms; 6 (iii) One member representing a packaging manufacturer that is not a beverage producer; 7 (iv) One member representing Rhode Island resource recovery corporation or a recycling 8 processor; 9 (v) One member representing an environmental nonprofit organization; 10 (vi) One member representing an environmental justice organization; 11 (vii) One member who is a canner or represents a canner organization; 12 (viii) One member representing a labor organization; and 13 (ix) Two (2) members representing other interested parties or additional members of 14 interests, as determined by the department; 15 (2) In making appointments under subsection (c) of this section, the department: 16 (i) Shall not appoint members who are state legislators; 17 (ii) Shall not appoint members who are employees of a beverage producer required to be 18 members of a producer responsibility organization in this state; 19 (iii) Shall endeavor to appoint members from all regions of the state; and 20 (iv) Shall endeavor to appoint at least one member that has experience with or expertise in 21 reusable beverage container systems. 22 (3) A chair is elected by majority vote of present members at the first meeting of each year 23 at which a quorum is reached. 24 (d) Members shall serve for a term of four (4) years, except that the initial term for a 25 majority of the initial appointees shall be two (2) years so that membership terms are staggered. 26 Members may be reappointed but may not serve more than eight (8) consecutive years. A member 27 of the advisory council appointed under subsection (c)(1)(ix) of this section, serves at the pleasure 28 of the department. 29 (e) A quorum is reached when: 30 (1) A majority of advisory council member seats are filled; and 31 (2) A majority of the non-vacant advisory council member seats is present. 32 (f) Action by an advisory council requires a quorum and a majority of those present and 33 voting. All members of an advisory council, except the members appointed under subsection 34 LC004624 - Page 40 of 59 (c)(1)(ix) of this section, are voting members of the board. 1 (g) Each advisory council shall meet at least two (2) times per year and may meet more 2 frequently upon ten (10) days' written notice at the request of the chair or a majority of its members. 3 (h)(1) The department shall provide administrative and operating support to each advisory 4 council, and the department may contract with a third-party facilitator to assist in administering the 5 activities of each advisory council, including establishing a website or landing page on the 6 department website. 7 (2) The department shall assist the advisory council in developing policies and procedures 8 governing the disclosure or perceived conflict of interest. 9 23-19.21-4. Beverage producer responsibilities. 10 (a) After September 1, 2027, a beverage producer shall be a member of a recycling refund 11 producer responsibility organization registered in this state or notify the department of their intent 12 to submit an individual program plan. 13 (b) Unless submitting an individual plan, a beverage producer shall: 14 (1) Register with the recycling refund producer responsibility organization; 15 (2) Implement the requirements of the recycling refund program plan under which the 16 beverage producer operates; 17 (3) Pay producer fees pursuant to § 23-19.21-9; 18 (4) Provide necessary information for covered beverage containers to the recycling refund 19 producer responsibility organization at a frequency and by a date to be determined by the recycling 20 refund producer responsibility organization; 21 (5) Register with the recycling refund producer responsibility organization by providing 22 identifying information for all covered beverage containers introduced into the state as required by 23 the recycling refund producer responsibility organization, which may include, but is not limited to, 24 barcodes and Universal Product Codes; and 25 (6) Comply with all other applicable requirements of this chapter. 26 23-19.21-5. Beverage container sales restrictions. 27 After July 1, 2030, no beverage producer may introduce in or into the state a covered 28 beverage container of a beverage producer that is not participating in the recycling refund producer 29 responsibility organization or operating under an approved individual plan, or that is not in 30 compliance with the requirements of this chapter or rules adopted under this chapter. 31 23-19.21-6. Recycling refund program department responsibilities. 32 (a) The department shall: 33 (1) Appoint the initial membership of the advisory council, as required; 34 LC004624 - Page 41 of 59 (2) Provide administrative and operating support to the advisory council; 1 (3) Review and determine whether to approve recycling refund program plans or individual 2 plans and amendments to recycling refund program plans or individual plans; 3 (4) Post on the department's website: 4 (i) The most recent registration materials submitted by the producer responsibility 5 organizations; 6 (ii) A list of registered service providers; 7 (iii) Any plan or amendment submitted by a packaging producer responsibility organization 8 or beverage producer that is in draft form during the public comment period; 9 (iv) Comments of the public, advisory council, and recycling refund producer 10 responsibility organization on plans and needs assessments, and, if any, the responses of the 11 department to those comments; 12 (v) Links to adopted rules implementing this chapter; 13 (vi) Review the selection of independent auditors to perform an annual financial audit of 14 the recycling refund producer responsibility organization or a beverage producer operating under 15 an approved individual plan; and 16 (vii) Conduct enforcement actions as permitted under this chapter. 17 (b) The department may alter the performance targets of § 23 -19.21-8 and reporting 18 requirements of this chapter to accommodate a recycling refund producer responsibility 19 organization that is operating regionally with the State of Rhode Island and one or more 20 neighboring states. 21 23-19.21-7. Recycling refund program plan. 22 (a)(1) By January 1, 2029, and every five (5) years thereafter, a recycling refund producer 23 responsibility organization shall submit a recycling refund program plan to the department that 24 describes the proposed operation by the organization of the program to fulfill the requirements of 25 this chapter. Once approved, a recycling refund program plan remains in effect for five (5) years, 26 as amended, or until a subsequent recycling refund program plan is approved. 27 (2) By July 1, 2030, or within six (6) months of plan approval, whichever is later, 28 implement the plan approved by the department; subsequent recycling refund program plans shall 29 be implemented within six (6) months of approval by the department. 30 (3) By January 1, 2029, and every five (5) years thereafter, an individual beverage producer 31 that has notified the department of its intent to submit an individual plan shall submit an individual 32 plan to the department that describes the proposed operation by the beverage producer of a program 33 to fulfill the requirements of this chapter and that incorporates the findings and results of needs 34 LC004624 - Page 42 of 59 assessments. Once approved, an individual plan remains in effect for five (5) years, as amended, or 1 until a subsequent individual plan is approved. 2 (b) A recycling refund producer responsibility organization or beverage producer shall 3 submit a draft recycling refund producer program plan, individual plan, or draft amendment to the 4 recycling refund advisory council prior to submitting the draft plan or draft amendment to the 5 department and shall, prior to submission of the draft plan or draft amendment to the department, 6 respond to recycling refund advisory council comments and recommendations received within 7 sixty (60) days of providing the draft program plan or draft amendment to the recycling refund 8 advisory council and indicate whether those comments or recommendations were accepted or 9 rejected. 10 (c) The recycling refund program plan or individual plan shall contain the following: 11 (1) A list of the types of covered beverage containers that will be included in the recycling 12 refund program, 13 (2) Proposed reuse rate and return rate performance targets with deadlines; 14 (3) How the recycling refund producer responsibility organization or beverage producer 15 submitting an individual plan will meet performance targets for redemption rates, as described in 16 this chapter and the proposed reuse rate performance targets in § 23-19.21-8; 17 (4) How the performance targets shall be measured; 18 (5) How the recycling refund producer responsibility organization shall encourage 19 improvements in the design of beverage containers for recyclability; 20 (6) How the proposed network of redemption sites: 21 (i) Satisfies the convenience standards set in this chapter and addresses the evaluation 22 criteria established in this chapter and chapters 19.20 and 19.22 of this title; and 23 (ii) Provides sufficient opportunity for consumers of limited economic means to get their 24 applicable refund value immediately upon redemption; 25 (7) How deposits collected from consumers shall be remitted to the recycling refund 26 producer responsibility organization; 27 (8) What incentives the recycling refund producer responsibility organization shall provide 28 to retail establishments so that they choose to host covered beverage container collection 29 mechanisms; 30 (9) How the program shall ensure that collection of covered beverage containers is 31 provided from establishments with on -site consumption of covered beverage containers at no 32 additional cost to those establishments; 33 (10) How the program shall conduct outreach and provide convenient redemption: 34 LC004624 - Page 43 of 59 (i) Throughout the state; 1 (ii) In rural, urban, and environmental justice areas; and 2 (iii) To those that redeem relatively large amounts of covered beverage containers; 3 (11) How beverage containers shall be marked or consumers otherwise made aware of the 4 beverage containers eligible for the applicable refund value; 5 (12) A description of how the recycling refund producer responsibility organization shall 6 educate the public on the recycling refund program and the availability of redemption sites, 7 including culturally responsive materials and methods to evaluate the efficacy of these efforts; 8 (13) A description of how the recycling refunds producer responsibility organization shall 9 monitor and report any suspected instances of fraudulent activity to the department; 10 (14) A description of the producer fee structure established pursuant to § 23 -19.21-9 and 11 how those fees shall be used to support the proposed network of redemption sites and other costs 12 of administrating the recycling refund producer responsibility organization and the recycling refund 13 program plan; 14 (15) An explanation of how the recycling refund producer responsibility organization shall 15 coordinate with Rhode Island resource recovery corporation on implementation, including: 16 (i) Quality standards for bales or equivalent units of commodities of covered beverage 17 containers sorted by the Rhode Island resource recovery corporation, including a methodology for 18 determining the number of covered beverage containers in bales or equivalent units of 19 commodities; 20 (ii) A methodology and schedule of incentive payments for bales or equivalent units of 21 covered beverage containers that meet the quality standards in subsection (15)(i) of this section. 22 The incentive payments under this subsection are a requirement separate from and in addition to 23 the reciprocal compensation mechanism required under the coordination plan in § 23-19.21-2; 24 (16) A description of how the recycling refunds producer responsibility organization shall 25 provide beverage producers with the opportunity to purchase recycled content sourced from 26 covered beverage containers managed through the recycling refunds program; and 27 (17) Any other reasonable information requested by the department. 28 (d)(1) The department shall review and approve, deny, or request additional information 29 for draft recycling refund program plans and draft plan amendments no later than one hundred 30 twenty (120) days after the date the department receives it from a packaging producer responsibility 31 organization, recycling refund producer responsibility organization, or beverage producer. The 32 department shall post a draft plan or draft amendment on the department's website and allow public 33 comment for no less than forty-five (45) days before approving, denying, or requesting additional 34 LC004624 - Page 44 of 59 information on a draft plan or draft amendment. 1 (2) In reviewing a draft plan, the department shall consider, among other factors, the 2 following: 3 (i) Feasibility; 4 (ii) Advisory council feedback; 5 (iii) Cost; 6 (iv) Goals and plans in the Rhode Island solid waste management plan; 7 (v) Increasing reuse; 8 (vi) Adequacy of consumer-facing communications, including so consumers know which 9 beverage containers are in the recycling refund system and their refund value; 10 (vii) Reducing unnecessary use of materials; and 11 (viii) Whether the plan adequately meets the convenience standard criteria described in § 12 23- 19.21-12. 13 (3) If the department denies or requests additional information for a draft plan or draft 14 amendment, the department shall provide the recycling refund producer organization or beverage 15 producer with the reasons, in writing, that the plan or plan amendment does not meet the plan 16 requirements. The recycling refund producer organization or beverage producer has sixty (60) days 17 from the date that the rejection or request for additional information is received to submit to the 18 department any revisions or additional information necessary for the approval of the draft plan or 19 draft amendment. The department shall review and approve or disapprove the draft plan or draft 20 amendment no later than sixty (60) days after the date the department receives the revisions or 21 additional information. 22 (4) A recycling refund producer organization or beverage producer with an approved 23 individual plan may resubmit a draft plan or draft amendment to the department on not more than 24 two (2) occasions. If after the second resubmission, the department determines that the draft plan 25 or draft amendment does not meet the plan requirements of this chapter, the department shall 26 modify the draft plan or draft amendment as necessary for it to meet the requirements of this chapter 27 and approve it. 28 (e) If a recycling refund producer responsibility organization fails to register with the 29 department and submit a program plan by the relevant dates in this chapter, the department may 30 develop a program plan for covered beverage containers. Beverage producers that do not notify the 31 department of their intent to submit an individual plan shall be subject to the program plan 32 developed by the department. 33 23-19.21-8. Recycling refund performance targets. 34 LC004624 - Page 45 of 59 (a) The recycling refund producer responsibility organization or beverage producer 1 operating under an individual plan shall achieve the following performance targets: 2 (1) Starting with calendar year 2033, and each year thereafter, the annual redemption rate 3 aggregated for all covered beverage containers shall be greater than sixty-five percent (65%). 4 (2) Starting with calendar year 2036, and each year thereafter, the annual redemption rate 5 aggregated for all covered beverage containers shall be greater than eighty-five percent (85%). 6 (b)(1) The recycling refund producer responsibility organization or beverage producer 7 operating an individual plan shall achieve the reuse rate and return rate performance target in the 8 approved recycling refund program plan. 9 (2) The reuse rate and return rate performance targets in a program plan shall increase with 10 each subsequent program plan for the first three (3) program plan periods. 11 23-19.21-9. Recycling refund producer fees. 12 (a) By September 1, 2028, each beverage producer that is a member of the recycling 13 refunds producer responsibility organization shall submit an initial fee to the recycling refunds 14 producer responsibility organization, as determined by the initial fee schedule developed under § 15 23-19.21-2(a)(4). 16 (b)(1) Beginning January 1, 2030, a recycling refunds producer responsibility organization 17 shall set and collect fees on a frequency to be determined by the recycling refunds producer 18 responsibility organization from each member producer that must: 19 (i) Vary based on the total amount of covered beverage containers each producer introduces 20 into the state; 21 (ii) Reflect program costs for each covered beverage container type, net of commodity 22 value for that material type when used as a recycled material, as well as allocated fixed costs that 23 do not vary based on material type; 24 (iii) After the first program plan, each recycling refunds producer responsibility 25 organization will consider incentivizing using materials and design attributes that reduce the 26 environmental impacts and human health impacts of covered beverage containers; 27 (2) The recycling refund producer responsibility organization shall offer a flat fee structure 28 for de minimis beverage producers. 29 (c) Revenue collected under this section that exceeds the amount needed to pay the costs 30 described in subsection (a) of this section, shall be used to improve or enhance program outcomes, 31 or to reduce beverage producer fees according to provisions of an approved packaging producer 32 program plan. 33 (d) Fees collected under this section may not be used for lobbying. 34 LC004624 - Page 46 of 59 23-19.21-10. Recycling refund website requirements. 1 (a) A recycling refund producer responsibility organization shall maintain a website that 2 uses best practices for accessibility. 3 (b) The recycling refund producer responsibility organization website shall contain, at a 4 minimum: 5 (1) Information regarding a process that members of the public can use to contact the 6 recycling refund producer responsibility organization with questions; 7 (2) The draft and approved recycling refund program plans and any draft and approved 8 amendments; 9 (3) Annual reports submitted to the department; 10 (4) A link to related administrative rules implementing this chapter; 11 (5) The names of beverage producers that are not in compliance with this chapter; 12 (6) A list, updated at least monthly, of all member beverage producers operating under the 13 recycling refund program plan; 14 (7) The list of covered beverage containers that are redeemable for the applicable refund 15 value under the provisions of § 23-19.20-11; 16 (8) Education materials on how to redeem covered beverage containers and the importance 17 of reusing and recycling covered beverage containers; and 18 (9) A list and map of all redemption sites currently accepting covered beverage containers 19 for a refund, including the hours each redemption site accepts covered beverage containers. 20 23-19.21-11. Applicable refund value. 21 (a)(1) Every covered beverage container sold or offered for sale in the state shall have a 22 refund value of ten cents ($0.10) beginning July 1, 2030, or within six (6) months of plan approval, 23 whichever is later, except that beverage producers of reusable and refillable beverage containers 24 may elect to assign a higher refund value on these containers. 25 (2) Containers sold for on -site consumption are exempt from the requirements of 26 subsection (a)(1) of this section , provided the covered beverage containers are collected and 27 recycled as described in the recycling refund producer responsibility organization's plan in § 23 -28 19.21-7. 29 (3) If a redemption rate performance target was not met in each of the two (2) previous 30 calendar years, the department may adopt rules providing a higher refund value than the refund 31 value provided under this section, so long as the modified refund value is not based on the type of 32 beverage container, but no more than: 33 (i) Once during any ten (10) year period in consultation with the recycling refund producer 34 LC004624 - Page 47 of 59 responsibility organization; and 1 (ii) Once during any five (5) year period if there is a request from the recycling refund 2 producer responsibility organization for a change in the refund amount. 3 (4) The charge for the refund value of covered beverage containers shall be separately 4 stated on a receipt, invoice, or similar billing document given to the consumer. 5 (b)(1) The recycling refund producer responsibility organization or beverage producer is 6 not required to pay refunds on: 7 (i) A beverage container visibly containing or contaminated by a substance other than 8 water, residue of the original contents, or ordinary dust; 9 (ii) A beverage container that is broken or damaged to the extent that the brand appearing 10 on the container cannot be identified; 11 (iii) A beverage container that the recycling refund producer responsibility organization or 12 beverage producer has reasonable grounds to believe was bought in another state; or 13 (iv) A beverage container for which the recycling refund producer responsibility 14 organization or beverage producer has reasonable grounds to believe a refund has already been 15 given. 16 (2) Notwithstanding an provision in this section to the contrary , the recycling refund 17 producer responsibility organization or beverage producer may accept covered beverage containers 18 described in subsection (b)(1)(i) and (b)(1)(ii) of this section from material recovery facilities and 19 transfer stations, provided the covered beverage containers meet the quality standards developed 20 by the recycling refunds producer responsibility organization as described in § 23-19.21-7(c)(14). 21 23-19.21-12. Convenience standard for redemption of beverage containers. 22 (a) The recycling refund producer responsibility organization or a beverage producer 23 submitting an individual plan shall propose a quantitative convenience standard for redemption of 24 containers in the recycling refund program plan that is based on the following: 25 (1) Ensures all consumers who pay a deposit have reasonably convenient opportunities to 26 redeem; 27 (2) Ensures consumers who require refunds immediately have sufficient opportunity to 28 receive refunds immediately; 29 (3) Provides appropriately convenient and equitable access in urban, suburban, and rural 30 areas; and 31 (4) Accounts for total population, population density, sales of covered beverage containers 32 in regions of the state, and proximity to centers of beverage sales business activity. 33 (b)(1) The department shall evaluate the proposed convenience standard based on the 34 LC004624 - Page 48 of 59 following criteria: 1 (i) Proximity to businesses that sell a high volume of covered beverage containers; 2 (ii) Additional vehicle miles traveled; 3 (iii) Car and public transportation access; 4 (iv) Population density; 5 (v) Environmental justice areas; 6 (vi) Average family income; and 7 (vii) Needs of people collecting large amounts of covered beverage containers for primary 8 or important supplemental income. 9 (2) At least once per year, the department may audit the redemption system to determine 10 whether the recycling refund producer responsibility organization or beverage producer operating 11 an approved individual plan is meeting the convenience standard in an approved recycling refund 12 program plan and the redemption system requirements in this chapter, and the department shall 13 conduct such an audit at least every five (5) years. 14 (c) The recycling refund producer responsibility organization shall include in its program 15 plan any relevant data to allow the department to verify whether the recycling refund producer 16 responsibility organization's proposed convenience standards meet the requirements of this chapter. 17 (d) In the event that the recycling refund producer responsibility organization or beverage 18 producer operating an approved individual plan does not meet the convenience standards in an 19 approved program plan for two (2) calendar years in a row, the department may initiate rulemaking 20 to support the recycling refund producer responsibility organization or beverage producer's 21 program plan amendment to achieve the convenience standards in this chapter. 22 23-19.21-13. Redemption system. 23 (a)(1) The recycling refund producer responsibility organization or beverage producer 24 operating an approved individual plan shall, at its own cost, install, operate, and maintain a network 25 of covered beverage container collection mechanisms for consumers to redeem covered beverage 26 containers for the applicable refund value that satisfies: 27 (i) The convenience standard in this chapter; and 28 (ii) The redemption rate performance targets in this chapter. 29 (b) The network of covered beverage container collection mechanisms shall include a mix 30 of ways for consumers to redeem covered beverage containers, including express redemption sites 31 and full-service redemption sites at locations convenient to consumers such as nearby or in the 32 parking lots of retailers that sell covered beverage containers, nonprofit organization facilities, and 33 government sites. 34 LC004624 - Page 49 of 59 (c) At a minimum, the network for collecting covered beverage containers shall: 1 (1) In each municipality with a population density less than one thousand (1,000) residents 2 per square mile, have: 3 (i) At least one redemption site in the municipality; or 4 (ii) At least one redemption site within one mile of a retail establishment greater than ten 5 thousand square feet (10,000 sq. ft) that is within three (3) miles of the municipality's borders. 6 (2) In each municipality with a population density more than one thousand (1,000) 7 residents per square mile, have at least two (2) redemption sites; 8 (3) In each municipality with greater than twenty -five thousand (25,000) residents but 9 fewer than seventy-five thousand (75,000) residents, at least one redemption site in each zip code 10 tabulation area. 11 (d) The recycling refund producer responsibility organization or beverage producer 12 operating an approved individual plan may establish and dissolve partnerships with any 13 organization or individual to enhance redemption network operations and better serve consumers. 14 (e)(1) All redemption sites in the redemption network shall: 15 (i) Be clean, safe, and well-lighted; 16 (ii) Be accessible to persons with disabilities, including those related to mobility, hearing, 17 and sight; 18 (iii) Be readily identifiable and clearly marked as being part of the recycling refund system; 19 (iv) Appear on the recycling refund producer responsibility organization's website under § 20 23-19.21-10; 21 (v) Accept for redemption all covered beverage containers; 22 (vi) Accept for redemption and handle reusable containers in a manner that allows for their 23 reuse; 24 (vii) Accept covered beverage containers for redemption for at least eight (8) hours on all 25 weekdays and one weekend day, except on federal holidays; 26 (viii) Post the hours of operation at a place that is clearly visible from outside; and 27 (ix) Provide year-round access during open hours free of charge. 28 (2) The department may approve a limited number of redemption sites to not comply with 29 all the requirements in subsection (a) of this section to reduce costs or expand the number of 30 redemption sites. 31 (f) The recycling refund producer responsibility organization or producer operating under 32 an approved individual plan shall fairly compensate all locations hosting redemption sites for the 33 space occupied by the covered beverage container collection mechanisms. 34 LC004624 - Page 50 of 59 (g)(1) A retail establishment has no obligation under this chapter to host a covered beverage 1 container collection mechanism. 2 (2) A retail establishment that chooses to host a redemption site is eligible to have a self - 3 serve kiosk, located at the retail establishment at no charge by the recycling refund producer 4 responsibility organization or beverage producer, to facilitate the printing of redemption vouchers, 5 and pay the value of redemption vouchers to consumers that can be used on the premises. The 6 recycling refund producer responsibility organization or beverage producer operating an approved 7 individual plan shall reimburse retailers for the value of valid vouchers redeemed by customers. 8 (h)(1) A retail establishment larger than twenty thousand square feet ( 20,000 sq. ft) shall 9 sell bags for the redemption program at the price established by the recycling refund producer 10 responsibility organization or beverage producer operating an approved individual plan. 11 (2) If the standard bags for the bag -drop program are made of plastic film, the recycling 12 refund producer organization or beverage producer shall: 13 (i) Ensure that the bags have a minimum of fifty percent (50%) postconsumer recycled 14 content; 15 (ii) Demonstrate, upon request of the department, that the waste film from the bags is being 16 recycled at responsible end markets; and 17 (iii) Include instructions on the bag how the bag should be utilized and recycled through a 18 drop-off program. 19 (3) The recycling refund producer organization or beverage producer shall credit the cost 20 of any required bag purchased back to the consumer when the bag is returned and processed through 21 the deposit return system. 22 23-19.21-14. Use of unredeemed deposits. 23 Any unredeemed deposits are to only be spent by the recycling refund producer 24 organization or beverage producer and only on any of the following purposes: 25 (1) Education and outreach activities to encourage redemption activity; 26 (2) Increasing the number of redemption sites; and 27 (3) Other activities that are described in the recycling refund program plan that directly 28 contribute to achieving the performance requirements described in § 23 -19.21-8 and other 29 provisions of this chapter. 30 23-19.21-15. Recycling refund program reporting. 31 (a)(1) By July 1, 2031, and on each July 1 thereafter, the recycling refund producer 32 responsibility organization or beverage producer operating under an approved individual plan shall 33 submit a report to the department that contains, at a minimum, the following information for the 34 LC004624 - Page 51 of 59 previous calendar year: 1 (i) Number of covered beverage containers included in the program sold in the state, by 2 material type and whether reusable; 3 (ii) Number of covered beverage containers redeemed and recycled through the program, 4 by material type; 5 (iii) Number of times reusable covered beverage containers were sold; 6 (iv) Number of times reusable covered beverage containers were returned through the 7 recycling refund program; 8 (v) An analysis of whether the recycling refund producer responsibility organization or 9 beverage producer is on track to reach the redemption rate performance targets specified in this 10 chapter and the reuse rate and return rate performance targets specified in the recycling refund 11 program plan, and what the recycling refund producer responsibility organization or beverage 12 producer is doing to achieve the performance targets by the relevant deadlines; 13 (vi) A list of redemption sites and processing facilities and their locations; 14 (vii) Verification of materials handled at responsible end markets; 15 (viii) Audited financial reports, including sources and uses of funds. 16 (ix) An evaluation of convenience of the program with the same criteria the department 17 shall use under this chapter; and 18 (x) A description of public awareness, education, and outreach activities undertaken by the 19 recycling refund producer responsibility organization or beverage producer, including analyses of 20 their efficacy. 21 (2) The recycling refund producer responsibility organization or beverage producer that 22 submits information or records to the department under this section may request that a portion of 23 the information or records be made available only for the confidential use of the department, the 24 director, or the appropriate division of the department. The director of the department shall give 25 consideration to the request, and if the director determines that this action is not detrimental to the 26 public interest, the director shall grant the request for the information to remain confidential. 27 (b) All data reported by a recycling refund producer responsibility organization or beverage 28 producer operating under an approved individual plan under this section shall, at the request of the 29 department no more than once annually, be audited by an independent third party. A recycling 30 refund producer responsibility organization or beverage producer is responsible for all costs 31 associated with the data audit. Auditable data shall only include data held by a recycling refund 32 producer responsibility organization or beverage producer. Auditing of any data inputs to the 33 recycling refund producer responsibility organization or beverage producer is the responsibility of 34 LC004624 - Page 52 of 59 the recycling refund producer responsibility organization or beverage producer. 1 (c) A recycling refund producer responsibility organization or beverage producer that fails 2 to meet a redemption rate performance target or convenience standard required under this chapter 3 or approved in a recycling refund program plan shall, within ninety (90) days of filing an annual 4 report under this section, file with the department an explanation of the factors contributing to the 5 failure and propose an amendment to the recycling refund program plan or individual plan 6 specifying changes, including in its operations that the recycling refund producer responsibility 7 organization or beverage producer will make that are designed to achieve the redemption rate 8 performance targets and convenience standards. 9 (d) By January 1, 2032, and every two (2) years thereafter, the department shall submit a 10 report to the governor and to the chairs and ranking minority members of the legislative committees 11 with jurisdiction over solid waste. The report shall contain: 12 (1) A summary of the operations of this act during the previous years, including the 13 redemption rate performance targets versus actual performance; 14 (2) A link to reports filed under this section; 15 (3) Recommendations for policy, statutory, or regulatory changes to the program; 16 (4) A list of efforts undertaken by the department to enforce and secure compliance with 17 this act; and 18 (5) Any other information the department deems to be relevant. 19 23-19.21-16. Recycling refund program account. 20 (a) The recycling refund program account is created in the custody of the State of Rhode 21 Island treasurer. All receipts received by the department under this chapter shall be deposited in the 22 account. 23 (b) Expenditures from the account may be used by the department only for implementing, 24 administering, and enforcing the requirements of this chapter related to the recycling refund 25 program. Only the director of the department may authorize expenditures from the account. The 26 account is subject to the allotment procedures under this chapter, but an appropriation is not 27 required for expenditures. 28 CHAPTER 19.22 29 GENERAL PROVISIONS 30 23-19.22-1. Single producer responsibility organization. 31 (a) The department may appoint the same organization to be the packaging producer 32 responsibility organization and the recycling refund producer responsibility organization. 33 (b) If the department appoints the same organization under subsection (a) of this section, 34 LC004624 - Page 53 of 59 then that organization shall: 1 (1) Comply with all the responsibilities under this chapter of the packaging producer 2 responsibility organization and the recycling refund producer responsibility organization; and 3 (2) Institute governance to separately implement the packaging producer program plan and 4 the recycling refund program plan in a coordinated manner. 5 23-19.22-2. Coordination plan. 6 (a) If the same organization is not appointed as the packaging producer responsibility 7 organization and the recycling refund producer responsibility organization according to the 8 provisions of chapters 19.20 or 19.21 or 19.22 of title 23, then by January 1, 2029, the packaging 9 producer responsibility organization and the recycling refund producer responsibility organization 10 shall create a coordination plan to ensure that their respective programs are complementary, operate 11 efficiently, and meet all targets. 12 (b) The coordination plan shall: 13 (1) Ensure consistent education and outreach messaging to consumers; 14 (2) Ensure that a reciprocal compensation mechanism exists so that the recycling refund 15 producer responsibility organization pays the packaging producer responsibility organization for 16 covered beverage containers in material recovery facilities, and the packaging producer 17 responsibility organization pays the recycling refund producer responsibility organization for 18 covered materials in the recycling refund system; 19 (3) Evaluate packages and formats managed by each program and consider opportunities 20 for adding or moving packages from one program to the other; 21 (4) Evaluate opportunities to coordinate identification of, and efficient access to, 22 processing infrastructure and markets; and 23 (5) Identify actions to jointly optimize infrastructure for recycling and reuse and refill 24 programs. 25 23-19.22-3. General department responsibilities. 26 (a) The department shall notify each producer responsibility organization in writing of the 27 amount of the fee for the following year to be paid with their annual registration, which may not 28 exceed the department's estimate of the costs required to: 29 (1) Administer, implement, and enforce this chapter, including staff costs; 30 (2) Rulemaking to implement this chapter, if applicable; 31 (3) Provide reimbursement for staffing for the advisory council; and 32 (4) Fulfill the department's responsibilities under this chapter. 33 (b) In setting the annual fee for each producer responsibility organization, the department 34 LC004624 - Page 54 of 59 shall develop and implement a process to allocate costs to each producer responsibility organization 1 proportional to the costs associated with that producer responsibility organization, including costs 2 for future needs assessments. 3 (c) The department shall develop and implement a process to reconcile the fees paid by a 4 producer responsibility organization under this section with the actual costs incurred by the 5 department, by means of credits or refunds to or additional payments required of a producer 6 responsibility organization, as applicable. 7 (d) By January 1, 2032, and every two (2) years thereafter, the department shall submit a 8 report to the governor and to the chairs and ranking minority members of the legislative committees 9 with jurisdiction over solid waste. The report shall contain: 10 (1) A summary of the operations of this chapter during the previous years, including the 11 performance targets versus actual performance; 12 (2) A summary of the needs assessment; 13 (3) A link to reports filed under this section; 14 (4) Recommendations for policy, statutory, or regulatory changes to the program; 15 (5) An analysis of the impacts of exempting certain materials from the definition of covered 16 materials and of exempting certain persons from the definition of producer; 17 (6) A list of efforts undertaken by the department to enforce and secure compliance with 18 this chapter; and 19 (7) Any other information the department deems to be relevant. 20 23-19.22-4. Service providers. 21 (a) A packaging producer responsibility organization or a recycling refund producer 22 responsibility organization shall require in any contract with a service provider that the service 23 provider: 24 (1) Meets operational standards established in an approved packaging producer program 25 plan and the recycling refund program plan; 26 (2) Ensures that covered materials or covered beverage containers are sent to responsible 27 end markets; and 28 (3) Provides documentation to the recycling refund producer responsibility organization 29 and packaging producer responsibility organization on the amounts, materials types, and volumes 30 of materials by covered service method. 31 (b) The packaging producer responsibility organization shall directly contract to pay one 32 hundred percent (100%) of covered services for covered materials, exclusive of exempt materials. 33 The methodology for contract rates shall consider estimated revenue received by service providers 34 LC004624 - Page 55 of 59 from the sale of covered materials based upon relevant material indices and incorporate relevant 1 cost information identified by the needs assessment. Contract rates shall be annually updated and 2 reflect the net costs for covered services for covered materials from covered entities, at a minimum. 3 (c) Contract rates shall be based on the following, as applicable by the service provided: 4 (1) The cost to collect covered material or covered beverage containers for recycling, a 5 proportional share of composting, or reuse adjusted to reflect conditions that affect those costs, 6 varied by region or jurisdiction in which the covered services are provided including, but not 7 limited to: 8 (i) The number and type of covered entities; 9 (ii) Population density; 10 (iii) Collections methods employed; 11 (iv) Distance traveled by collection vehicles to consolidation or transfer facilities; to reuse, 12 recycling, or composting facilities; and to responsible end markets; 13 (v) Other factors that may contribute to regional or jurisdictional cost differences; 14 (vi) The proportion of covered compostable materials within all source -separated 15 compostable materials collected or managed through composting; and 16 (vii) The general quality of covered materials collected by service providers; 17 (2) The cost to transfer collected covered materials from consolidation or transfer facilities 18 to reuse, processing, recycling, or composting facilities or to responsible end markets; 19 (3) The cost to: 20 (i) Sort and process covered materials for sale or use and remove contamination from 21 covered materials by a recycling or composting facility, less the average fair market value for that 22 covered material based on market indices for the region; and 23 (ii) Manage contamination removed from collected covered material; 24 (4) Administrative costs of service providers, including education, public awareness 25 campaigns, and outreach program costs as applicable; and 26 (5) The costs of covered services for a refill system or covered services provided for 27 reusable covered materials and management of contamination. 28 (d) A service provider retains all revenue from the sale of covered materials. Nothing in 29 this chapter shall restrict a service provider from charging a fee for covered services of covered 30 materials to the extent that payment from a packaging producer responsibility organization does 31 not cover all costs of services, including continued investment and innovation in operations, 32 operating profits, and returns on investments required by a service provider to provide sustainability 33 of the services. 34 LC004624 - Page 56 of 59 (e) Contract rates may be calculated per ton, by household, or by another unit of 1 measurement under an approved packaging producer program plan or recycling refund program 2 plan. 3 (f) By January 1, 2028, and annually thereafter, a service provider seeking reimbursement 4 for covered services provided under an approved program plan shall register with the department 5 by submitting the following information: 6 (1) The contact information for a person representing the service provider; 7 (2) The address of the service provider; and 8 (3) If applicable to services provided, a report of the total amount billed for collection for 9 covered entities, processing services, and transfer station operations provided during the preceding 10 calendar year and, when possible, values shall be separated for collection, transfer, and processing. 11 (g) A producer responsibility organization or a recycling refund producer responsibility 12 organization shall establish a dispute resolution process utilizing third-party mediators for disputes 13 related to payments. 14 23-19.22-5. Transfer station and material recovery facilities. 15 By April 1, 2030, and each year thereafter, each material recovery facility and transfer 16 station that receives covered materials are to report annually to the packaging producer 17 responsibility organization, the recycling refund producer responsibility organization, and the 18 department, including the following information: 19 (1) Amount of material accepted by supplier and location of origin (municipality, service 20 provider, or other); 21 (2) Amount of material sold to market, by commodity type; 22 (3) Amount of residue or waste generated; and 23 (4) Verification that end -markets are responsible and compliant with program 24 requirements. 25 23-19.22-6. Enforcement. 26 (a) The department may administratively impose a civil penalty of up to one thousand 27 dollars ($1,000) per violation per day on any producer who violates this chapter and up to ten 28 thousand dollars ($10,000) per violation per day for the second and each subsequent violation in 29 any calendar year. 30 (b) The department may administratively impose a civil penalty of up to one thousand 31 dollars ($1,000) per violation per day on any packaging producer responsibility organization or 32 recycling refund producer responsibility organization that violates this chapter and up to ten 33 thousand dollars ($10,000) per violation per day for the second and each subsequent violation in 34 LC004624 - Page 57 of 59 any calendar year. 1 (c) The department may, in addition to assessing the penalties provided in subsections (a) 2 and (b) of this section, take any combination of the following actions: 3 (1) Issue a corrective action order to a producer or a packaging producer responsibility 4 organization or a recycling refund producer responsibility organization; 5 (2) Issue an order to a packaging producer responsibility organization or a recycling refund 6 producer responsibility organization to provide for the continued implementation of the program 7 in the absence of an approved plan; 8 (3) Revoke the producer responsibility organization's plan approval and require resubmittal 9 of a producer responsibility organization's program plan; 10 (4) Require a producer responsibility organization to revise or resubmit a plan within a 11 specified time frame; or 12 (5) Require additional reporting related to the area of noncompliance. 13 (d) The department may assess a penalty on a person that engages in fraudulent activity. 14 The amount of the penalty that the department may assess under this section is twice the amount of 15 money the person received from the fraudulent activity in violation of this chapter or five hundred 16 dollars ($500), whichever is greater. 17 (e) The department may assess a penalty on a person that continues to sell or distribute 18 covered beverage containers of a producer that has been assessed a penalty under subsection (a) of 19 this section, sixty (60) days after the person receives a written warning from the department. The 20 amount of the penalty that the department may assess under this subsection is twice the value of 21 the covered beverage containers sold in violation of this chapter or five hundred dollars ($500), 22 whichever is greater. The department shall waive the penalty upon verification that the person has 23 discontinued distribution or sales of the covered beverage containers within thirty (30) days of the 24 date the penalty is assessed. 25 (f) For a producer, beverage producer or producer responsibility organization out of 26 compliance with the requirements of this chapter, the department shall provide written notification 27 and offer information. For the purposes of this section, written notification serves as notice of the 28 violation. The department shall issue at least one notice of violation by certified mail prior to 29 assessing a penalty and the department may only impose a penalty on a producer that has not met 30 the requirements of this chapter sixty (60) days following the date the written notification of the 31 violation was received. 32 (g) Any person who incurs a penalty or receives an order may appeal the penalty or order 33 pursuant to the chapter 35 of title 42 ("administrative procedures"). 34 LC004624 - Page 58 of 59 (h) Penalties levied under this section shall be deposited in the recycling refund program 1 account or packaging producer responsibility program account. 2 23-19.22-7. Anti-competitive conduct. 3 A packaging producer responsibility organization or a recycling refund producer 4 responsibility organization that arranges collection, recycling, composting, source reduction, or 5 reuse services under this chapter may engage in anticompetitive conduct to the extent necessary to 6 plan and implement collection, recycling, composting, source reduction, or reuse systems to meet 7 the obligations under this chapter, and is immune from liability under State of Rhode Island laws 8 relating to antitrust, restraint of trade, and unfair trade practices. 9 23-19.22-8. Rulemaking. 10 The department may adopt rules to implement this chapter. 11 SECTION 2. This act shall take effect upon passage. 12 ======== LC004624 ======== LC004624 - Page 59 of 59 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO HEALTH AND SAFETY -- EXTENDED PRODUCER RESPONSIBILITY FOR PACKAGING AND PAPER ACT *** This act would create multiple chapters to provide and establish a comprehensive program 1 for recycling of beverage containers and extended producer responsibility for packaging and paper, 2 after the completion of an implementation analysis by the department of environmental 3 management, which would be the lead department in overseeing, implementing, and enforcing the 4 provisions of this act. 5 This act would take effect upon passage. 6 ======== LC004624 ========