Providing for a deposit return program for qualifying beverage containers to be implemented by a distributor responsibility organization.

AN ACT Relating to providing for a deposit return program for 1 qualifying beverage containers to be implemented by a distributor 2 responsibility organization; amending RCW 82.19.050 and 70A.245.100; 3 adding a new section to chapter 82.04 RCW; adding a new section to 4 chapter 35.21 RCW; adding a new section to chapter 35A.21 RCW; adding 5 a new section to chapter 36.01 RCW; adding a new chapter to Title 70A 6 RCW; creating a new section; prescribing penalties; and providing an 7 expiration date. 8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:9 NEW SECTION. Sec. 1. INTENT. (1)(a) The legislature finds that 10 the department was directed, through an independent consultant, to 11 study how plastic packaging is managed in the state, to assess 12 various policy options, and to provide recommendations to achieve 13 certain goals, which include:14 (i) Plastic packaging sold into the state is 100 percent 15 recyclable, reusable, or compostable by January 1, 2025; and16 (ii) Plastic packaging sold into the state incorporates at least 17 50 percent postconsumer recycled content by January 1, 2030.18 (b) The legislature also finds that the study recommends that a 19 deposit return system is an effective way for producers to meet 20 outcomes required by an extended producer responsibility framework.21 H-2250.2 HOUSE BILL 2144 State of Washington 68th Legislature 2024 Regular Session By Representatives Stonier and Berry Prefiled 01/04/24. p. 1 HB 2144 (2) The legislature finds that a 2023 study commissioned by the 1 department examined potential material recovery targets for consumer 2 packaging and found that the best possible recovery, reuse, and 3 recycling outcomes were made possible with an extended producer 4 responsibility system combined with a deposit return system for 5 qualifying beverage containers. 6 (3) The legislature intends that packaging materials be recycled 7 or reused through a deposit return system for qualifying beverage 8 containers and extended producer responsibility programs for other 9 packaging materials. It is the intent of the legislature that a 10 deposit return system for qualifying beverage containers incentivizes 11 innovation, consumer participation, and industry stewardship to 12 minimize environmental impacts. 13 NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this 14 section apply throughout this chapter unless the context clearly 15 requires otherwise.16 (1) "Dealer" means any person, corporation, partnership, 17 business, facility, vendor, organization, or individual that sells or 18 provides merchandise, goods, or materials directly to a consumer that 19 engages in the sale of beverages in qualifying beverage containers 20 intended for consumption off site. 21 (2) "Department" means the department of ecology.22 (3) "Deposit return system" means a qualifying beverage container 23 redemption program that pays a per-unit refund value to consumers for 24 qualifying beverage containers and collects and processes qualifying 25 beverage containers as described in this chapter. 26 (4) "Distributor" means any person or entity who engages in the 27 sale of beverages in qualifying beverage containers to a dealer in 28 this state, including any manufacturer or importer who engages in 29 such sales to dealers or directly to consumers, and dealers who self-30 distribute their own brands. 31 (5) "Distributor responsibility organization" means a cooperative 32 association subject to chapter 23.86 RCW, or an alternative structure 33 as approved by the department, that is designated by a group of 34 distributors representing the majority of beverages sold in 35 qualifying beverage containers in the state, to develop and carry out 36 the activities required of distributors in this act.37 (6) "Qualifying beverage container" means any separate, sealed 38 glass, metal, or plastic bottle or can, except for a carton, foil 39 p. 2 HB 2144 pouch, drink box, or metal container that requires a tool to be 1 opened, that contains any beverage intended for human consumption, 2 and in a quantity of greater than four ounces and less than or equal 3 to one gallon, except for products with dairy milk as a first 4 ingredient and infant formula. 5 NEW SECTION. Sec. 3. RELATIONSHIP WITH OTHER PRODUCER 6 RESPONSIBILITY PROGRAMS. Notwithstanding any other extended producer 7 responsibility program or programs enacted by the legislature to 8 address the recycling or reuse of qualifying beverage containers, 9 upon the effective date of this section, all qualifying beverage 10 containers and their closures and labels of all producers cease to be 11 considered covered products in any other extended producer 12 responsibility program and are instead subject to the requirements of 13 this chapter. A producer responsibility organization or similar 14 entity implementing an extended producer responsibility organization 15 may not require the participation of producers or distributors of 16 qualifying beverage containers or impose fees on producers or 17 distributors of qualifying beverage containers and any closures or 18 labels managed under this chapter.19 NEW SECTION. Sec. 4. FORMATION OF A DISTRIBUTOR RESPONSIBILITY 20 ORGANIZATION. (1) A group of distributors representing the majority 21 of beverages in qualifying beverage containers sold in or into 22 Washington may form a distributor responsibility organization to 23 operate a deposit return system that meets the requirements of this 24 chapter. To be approved as a distributor responsibility organization, 25 a group of distributors must register with the department and 26 demonstrate to the department's satisfaction that its initial 27 membership represents the majority of beverages in qualifying 28 beverage containers sold or made available for sale in the state. 29 Distributors may not be members of or appear on the registration of 30 more than one distributor responsibility organization registering 31 with the department.32 (2) A distributor responsibility organization registering with 33 the department must submit with its registration the following:34 (a) A list of its member distributors and their brands of 35 beverages in qualifying beverage containers; and 36 p. 3 HB 2144 (b) The total gross unit sales volume of beverages in qualifying 1 beverage containers distributed by its members in Washington during 2 the preceding year. 3 (3) The department shall review registrations submitted by a 4 distributor responsibility organization. Except for the registration 5 of an individual distributor independently fulfilling the duties 6 required of a distributor responsibility organization, the department 7 may not approve the registration of a distributor responsibility 8 organization whose initial membership at the time of registration 9 does not represent a majority of beverages in qualifying beverage 10 containers sold or made available for sale in Washington during the 11 prior year. The department shall approve the registration of a 12 distributor responsibility organization whose initial membership at 13 the time of registration represents, to the department's 14 satisfaction, a majority of beverages in qualifying beverage 15 containers sold or made available for sale in Washington during the 16 prior year. The department shall approve the registration of an 17 individual distributor independently fulfilling the duties required 18 of a distributor responsibility organization as described in section 19 5 of this act. 20 (4) The requirements of this chapter do not take effect unless 21 and until a distributor responsibility organization, other than a 22 single distributor independently complying with the requirements of 23 this chapter, is established and registers with the department to 24 establish and operate a deposit return system, and has a plan 25 approved by the department to do so. 26 NEW SECTION. Sec. 5. DISTRIBUTOR RESPONSIBILITY ORGANIZATION 27 MEMBERSHIP AND DISTRIBUTORS INDEPENDENTLY CARRYING OUT THE DUTIES AND 28 REQUIREMENTS OF A DISTRIBUTOR RESPONSIBILITY ORGANIZATION. (1) By 29 October 1, 2025, or 120 days after a distributor responsibility 30 organization's registration is approved by the department, whichever 31 is later, each distributor that offers for sale, sells, or 32 distributes in or into Washington beverages in qualifying beverage 33 containers must:34 (a) Join a distributor responsibility organization; or35 (b) Register with the department as a distributor independently 36 carrying out all duties and requirements of a distributor 37 responsibility organization as described in this chapter. These 38 duties include, but are not limited to, the following: (i) Providing 39 p. 4 HB 2144 a convenient bulk bag drop-off system as described in section 12 of 1 this act that accepts all qualifying beverage containers in the same 2 bag and at no cost to consumers; (ii) providing the same number and 3 geographic distribution of drop-off locations as a distributor 4 responsibility organization; (iii) paying to consumers the refund 5 value of qualifying beverage containers; (iv) meeting the performance 6 targets described in section 9 of this act; (v) paying all applicable 7 performance penalties required of a distributor responsibility 8 organization in this chapter; and (vi) fulfilling all reporting 9 requirements required in this chapter. 10 (2) Distributors that have not joined a distributor 11 responsibility organization, or that do not independently fulfill the 12 duties required of a distributor responsibility organization, may not 13 sell or supply beverages in qualifying beverage containers in or into 14 Washington after October 1, 2025, or 120 days after a distributor 15 responsibility organization is approved by the department, whichever 16 is later. Any distributor that operates in violation of this 17 requirement is subject to penalties and damages as described in 18 section 7 of this act. 19 (3) If a distributor responsibility organization, other than a 20 single distributor independently fulfilling the requirements of a 21 distributor responsibility organization, is approved by the 22 department and operates a deposit return system as described in this 23 chapter, all qualifying beverage containers are included in the 24 deposit return system and all requirements of this chapter apply to 25 the distributors of beverages in qualifying beverage containers.26 NEW SECTION. Sec. 6. INITIAL REPORTING REQUIREMENTS. (1)(a) 27 Until a distributor responsibility organization begins to submit 28 annual reports as required in section 18 of this act, by January 15th 29 of each year, a distributor responsibility organization must submit 30 the following data for the prior calendar year:31 (i) A list of its member distributors and their brands of 32 beverages in qualifying beverage containers; and 33 (ii) The number of qualifying beverage containers sold or made 34 available for sale in the state by members of the distributor 35 responsibility organization, by material category and size.36 (b) A distributor responsibility organization may rely on member 37 reporting for the reporting requirements in this section.38 p. 5 HB 2144 (2) A distributor responsibility organization that submits 1 information or records to the department under this chapter may 2 request that the information or records be made available only for 3 the confidential use of the department, the director, or the 4 appropriate division of the department. The director of the 5 department shall give consideration to the request, and if the 6 director determines that this action is not detrimental to the public 7 interest and is otherwise in accordance with policies and purposes of 8 chapter 43.21A RCW, the director must grant the request for the 9 information to remain confidential as authorized in RCW 43.21A.160.10 NEW SECTION. Sec. 7. CALCULATION AND PAYMENT OF FEES TO THE 11 DEPARTMENT AND DAMAGES OWED TO A DISTRIBUTOR RESPONSIBILITY 12 ORGANIZATION. (1) The department shall implement, administer, and 13 enforce this chapter. The department may adopt rules to implement, 14 administer, and enforce this chapter.15 (2) By April 1st of each year after a distributor responsibility 16 organization's registration has been approved by the department, the 17 department must: 18 (a) Prepare a workload analysis that, as narrowly, efficiently, 19 and cost-effectively as possible, identifies the annual costs to 20 implement, administer, and enforce this chapter, including rule 21 making, in the next fiscal year; 22 (b) Determine a total annual fee payment to be paid by a 23 distributor responsibility organization to cover, but not exceed, the 24 costs of implementing, administering, and enforcing this chapter 25 identified through the workload analysis; and 26 (c) Send notice to a distributor responsibility organization of 27 the fee amounts due. 28 (3) By June 30th of the fiscal year of approval of a distributor 29 responsibility organization registration and every June 30th 30 thereafter, a distributor responsibility organization registered with 31 the department shall submit an annual payment to the department to 32 fund the costs to implement, administer, and enforce this chapter, 33 including rule making, as identified through the workload analysis.34 (4) In lieu of the annual fee payment required of the distributor 35 responsibility organization, 120 days after a distributor 36 responsibility organization's registration has been approved by the 37 department, a distributor independently carrying out the duties and 38 requirements of a distributor responsibility organization described 39 p. 6 HB 2144 in this chapter shall pay a registration fee to the department equal 1 to 10 cents per qualifying beverage container until such time as a 2 distributor responsibility organization begins operating a deposit 3 return system. 4 (5) After a distributor responsibility organization begins 5 operating a deposit return system, and after notification of 6 noncompliance from the department and a 60-day cure period, the 7 department shall administratively impose a civil penalty to any 8 distributor who fails to participate in a distributor responsibility 9 organization as specified in section 5 of this act, or fails to 10 otherwise comply with the requirements of this chapter by 11 independently carrying out the duties of a distributor responsibility 12 organization described in this chapter, which must be at least 15 13 cents per beverage in a qualifying beverage container sold or made 14 available for sale by the distributor in the state, or $10,000, 15 whichever is greater. 16 (6) Any distributor who incurs a penalty under this section may 17 appeal the penalty to the pollution control hearings board created in 18 chapter 43.21B RCW . 19 (7) Fees paid by distributors not participating in a distributor 20 responsibility organization under this section must be deposited into 21 the deposit return organization program account created in section 24 22 of this act and used by the department to offset the costs of 23 implementing the requirements of this chapter. 24 (8) Penalties paid by distributors not participating in a 25 distributor responsibility organization under this section must be 26 deposited into the recycling enhancement account created in RCW 27 70A.245.100. 28 (9) Notwithstanding the requirements of this section, a 29 manufacturer distributor producing a de minimis quantity of beverages 30 in refillable qualifying beverage containers may alternatively comply 31 with the requirements of this chapter by operating a small-scale 32 refund program approved by the department, as described in section 21 33 of this act. 34 (10) Unless otherwise specified in a distributor responsibility 35 organization's bylaws or in a contract between a distributor 36 responsibility organization and an individual distributor arranging 37 specifically for the collection of qualifying beverage containers 38 sold for the purpose of consumption on premises, after a distributor 39 responsibility organization begins operating a deposit return system, 40 p. 7 HB 2144 any manufacturer, distributor, or importer that fails to pay to a 1 distributor responsibility organization the refund value of 2 qualifying beverage containers included in this chapter is liable to 3 the distributor responsibility organization for treble the unpaid 4 refund value and treble the collection costs incurred by the 5 distributor responsibility organization for any qualifying beverage 6 containers that were sold without the refund value of the container 7 being remitted to the distributor responsibility organization.8 NEW SECTION. Sec. 8. RESTRICTIONS ON THE USE OF FUNDS FROM 9 UNCLAIMED REFUNDS. (1) A distributor responsibility organization may 10 not distribute or otherwise disseminate funds from unclaimed refunds 11 to members of the distributor cooperative, or alternative structure 12 approved by the department, as a dividend or similar form of profit, 13 and shall report on this requirement annually in the manner described 14 in section 18 of this act.15 (2) A distributor responsibility organization may not use funds 16 from unclaimed refunds for the purpose of legislative or political 17 advocacy efforts that would require reporting under chapter 42.17A 18 RCW and the distributor responsibility organization shall report on 19 this requirement annually in the manner described in section 18 of 20 this act. 21 NEW SECTION. Sec. 9. REUSE AND RECYCLING PERFORMANCE 22 REQUIREMENTS, VERIFICATION, AND PERFORMANCE PENALTIES. (1) To meet 23 the reuse and recycling performance requirements established in this 24 section, a distributor responsibility organization shall calculate 25 the reuse sales rate and the redemption rate of qualifying beverage 26 containers and provide the verification to the department as part of 27 the annual reporting requirements. The reuse sales rate is the number 28 of qualifying beverage containers in reusable packaging sold in a 29 year. For materials reclaimed under a deposit return system, the 30 calculation point for the redemption rate is the number of qualifying 31 beverage containers redeemed statewide by the distributor 32 responsibility organization divided by the number of beverages in 33 qualifying beverage containers sold in the state by members of the 34 distributor responsibility organization.35 (2) At a minimum, a deposit return system plan submitted by a 36 distributor responsibility organization must achieve the following 37 performance requirements: 38 p. 8 HB 2144 (a) A minimum of 60 percent of all qualifying beverage containers 1 supplied into the state are redeemed for reuse or recycling through 2 the deposit return system in the data reported for 2029 and 3 thereafter; 4 (b) A minimum of 80 percent of all qualifying beverage containers 5 supplied into the state are redeemed for reuse or recycling through 6 the deposit return system in the data reported for 2032 and 7 thereafter; and 8 (c) By December 31, 2032, sales of beverages in reusable 9 packaging must reach at least one percent of all qualifying beverage 10 containers. 11 (3) The department shall make public the annual reporting of the 12 redemption rate and reuse sales rate required of the distributor 13 responsibility organization registered by the department and any 14 individual distributor independently complying with the requirements 15 of this chapter. 16 (4)(a) In order to determine compliance with the redemption rate 17 performance targets, the department may, within 120 days of the date 18 that the department receives a report as described in section 18 of 19 this act, review the records of a distributor responsibility 20 organization specifically related to the accuracy of the redemption 21 rate. The records specifically related to the accuracy of the 22 redemption rate do not include financial details of a distributor 23 responsibility organization. 24 (b) If in the course of a review described in (a) of this 25 subsection, the department determines that an audit of a distributor 26 responsibility organization is necessary to verify the redemption 27 rate, the department shall require the distributor responsibility 28 organization to retain an independent audit firm to determine the 29 accuracy of the redemption rate. The scope of this audit is limited 30 to records specifically related to the accuracy of the redemption 31 rate. A distributor responsibility organization that is subject to 32 review shall pay the costs of the audit. The audit is limited to the 33 records described in (a) of this subsection. 34 (5) In lieu of any other penalties for not achieving the 35 performance criteria in this section, should the redemption rate 36 performance requirements described in this section not be met, the 37 distributor responsibility organization shall annually calculate the 38 number of containers representing the difference between the 39 redemption rate of qualifying beverage containers and the redemption 40 p. 9 HB 2144 rate performance requirements described in this section, and pay a 1 penalty that is equal to 10 cents times the number of containers 2 representing the difference, to be deposited into the model toxics 3 control operating account created in RCW 70A.305.180.4 (6) At the sole discretion of the department, if the requirements 5 of this section result in a penalty to be paid by the distributor 6 responsibility organization, the department may alternatively 7 identify priority areas for additional drop-off access to be 8 provided, or may identify a reduction in the penalty to be paid in 9 conjunction with the identification of priority areas for additional 10 drop-off access to be provided, and the department and the 11 distributor responsibility organization may agree to provide 12 additional access accordingly. If agreement is not reached, the 13 financial penalties in subsection (5) of this section must be paid.14 (7) A penalty may not be assessed on the distributor 15 responsibility organization related to the reuse performance 16 requirements described in this section. 17 NEW SECTION. Sec. 10. DEPOSIT RETURN SYSTEM PLAN SUBMITTAL, 18 APPROVAL PROCESS, AND DEPLOYMENT. (1) Beginning July 1, 2027, or 19 within 180 days of the first adoption of rules under this chapter, 20 whichever is later, a distributor responsibility organization with an 21 approved registration with the department shall submit a plan to the 22 department that meets the requirements of sections 11 through 20 of 23 this act.24 (2) The department shall evaluate the plan submitted by the 25 distributor responsibility organization and make a determination of 26 approval within 60 days of receiving the plan. The department shall 27 approve the plan if it substantially meets the requirements of 28 sections 11 through 20 of this act. The department shall disapprove 29 the plan if it does not substantially meet the requirements of 30 sections 11 through 20 of this act. If the department disapproves the 31 plan of a distributor responsibility organization, the department 32 shall provide a detailed explanation of its reasons for disapproval.33 (3) Upon receipt of a plan disapproval and the department's 34 detailed explanation for disapproving the plan, a distributor 35 responsibility organization has 60 days to submit an amended plan to 36 the department. Within 60 days, the department shall review and 37 approve the amended plan if it substantially meets the requirements 38 of sections 11 through 20 of this act or deny the amended plan if it 39 p. 10 HB 2144 does not substantially meet the requirements of sections 11 through 1 20 of this act. 2 (4) If a distributor responsibility organization fails to submit 3 a plan by July 1, 2027, or within 180 days of the first adoption of 4 rules relating to this chapter, whichever is later, or if a 5 distributor responsibility organization fails to submit an amended 6 plan within 60 days of a plan disapproval or a disapproval of an 7 amended plan, the contingency plan described in section 27 of this 8 act must be engaged. 9 (5) Upon receipt of the department's approval of a distributor 10 responsibility organization's plan or amended plan to operate a 11 deposit return system, the distributor responsibility organization 12 shall implement a deposit return system as described in its approved 13 plan by July 1, 2028, or within one year of first adoption of rules 14 under this chapter, or within one year of the department's approval 15 of the plan, whichever is later. 16 NEW SECTION. Sec. 11. REFUND VALUE, LABELING OF REFUND VALUE, 17 AND COLLECTION OF REFUND VALUE. (1) A distributor responsibility 18 organization operating a deposit return system shall provide a refund 19 value of 10 cents per qualifying beverage container purchased in 20 Washington and presented for a refund through the deposit return 21 system, except in cases described in section 19 of this act.22 (2) If a distributor responsibility organization's deposit return 23 system plan is approved by the department, except for containers 24 covered by a small-scale refund program established under section 21 25 of this act, all qualifying beverage containers sold or offered for 26 sale in the state of Washington must: 27 (a) Carry a 10 cent refund value; 28 (b) Be registered at least annually with the distributor 29 responsibility organization by the producer or distributor, including 30 information on the brand, size, container material type or types, 31 beverage type, bar code or stock-keeping unit information, and total 32 number of containers of each type, size, and brand sold in the state 33 of Washington; 34 (c) Be sold by a distributor, importer, or producer that is a 35 member of the distributor responsibility organization submitting the 36 deposit return system plan for qualifying beverage containers or an 37 individual distributor independently carrying out the duties required 38 p. 11 HB 2144 of a distributor responsibility organization described in this 1 chapter; and 2 (d) Carry a clear and conspicuous marking indicating the refund 3 value of the container in the state of Washington. This requirement 4 may be satisfied through the abbreviation "WARV" or any other 5 standard abbreviation approved by the department. A qualifying 6 beverage container for wine may satisfy the requirement to indicate 7 the refund value of the container through the use of a quick response 8 code. 9 (3) A distributor responsibility organization registered with the 10 department may require deposits to be collected to offset the refund 11 value up to 60 days prior to the start of the deposit return system.12 NEW SECTION. Sec. 12. BULK DROP-OFF PROGRAM AND DROP-OFF 13 NETWORK FOR COLLECTING QUALIFYING BEVERAGE CONTAINERS. (1) The 14 distributor responsibility organization must, at its own cost, 15 provide a convenient bulk drop-off option for bagged qualifying 16 beverage containers through a network of geographically dispersed 17 locations in Washington that sell beverages in qualifying beverage 18 containers, are located a convenient distance from a dealer, are 19 located at a publicly owned facility, or are otherwise convenient for 20 consumers. The distributor responsibility organization may not charge 21 customers for the use of this drop-off service and must credit the 22 cost of any required bag purchase back to the customer when the bag 23 is returned and processed through the deposit return system.24 (2) The distributor responsibility organization shall provide a 25 sufficient number and distribution of drop-off facilities to achieve 26 the redemption rate performance requirements included in section 9 of 27 this act. The distributor responsibility organization's plan 28 submitted to the department must provide an analysis and rationale 29 supporting how the distributor responsibility organization's proposed 30 distribution of drop-off facilities is designed to meet the 31 redemption rate performance requirements included in section 9 of 32 this act. Within the number of locations necessary to achieve the 33 redemption rate performance targets identified through the analysis 34 and rationale included in its plan, the distributor responsibility 35 organization shall consider the following factors in making drop-off 36 facility location decisions: (a) Proximity to the volume of beverage 37 sales occurring in an area; (b) access in rural counties; (c) access 38 in small cities; (d) convenient access for people living in 39 p. 12 HB 2144 communities serviced by the Washington state ferries system; and (e) 1 convenient access for people in economically strained areas and in 2 underserved urban areas. 3 (3) The distributor responsibility organization, with input from 4 the consumer convenience advisory council established in section 14 5 of this act, may provide alternative access plans for areas where the 6 beverage sales volume would otherwise necessitate drop-off capacity, 7 but where drop-off locations cannot be secured. The department may 8 approve the alternative access plan if it deems it to be similarly 9 convenient to consumers. 10 (4) All dealers over 5,000 square feet and with qualifying 11 beverage container unit sales greater than 100,000 annually must 12 install a self-serve kiosk, provided at no charge by the distributor 13 responsibility organization, to facilitate the printing of redemption 14 vouchers, pay the value of redemption vouchers to customers, and must 15 sell bags for the bulk redemption program at the price established by 16 the distributor responsibility organization. The distributor 17 responsibility organization shall reimburse dealers for the value of 18 valid vouchers redeemed by customers. Dealers may additionally offer 19 a voucher redemption option for funds to be used as store credit. 20 There is no other cost or requirement for dealers associated with 21 container redemption. 22 (5) Drop-off locations may be located at dealers, or any other 23 retail establishment, publicly owned facility, or any other location 24 convenient to consumers. However, nothing in this chapter may be 25 interpreted to create a legal obligation on the part of dealers 26 either to accept returned qualifying beverage containers or allow a 27 drop-off location to be sited at a dealer. 28 (6) Storage and drop-off containers sited for the purpose of 29 fulfilling the requirements of this section are considered temporary 30 mobile containers regardless of whether they have wheels, have 31 electrical power, or are affixed to the site. 32 (7) If the distributor responsibility organization uses automated 33 industrial counting equipment to count containers returned in bulk 34 and credit refund values to consumers, the distributor responsibility 35 organization may use commercially viable methods of counting, and 36 shall have a customer service system, which serves as the sole remedy 37 to resolve complaints and discrepancies. 38 (8) The distributor responsibility organization may create 39 reasonable terms and conditions for participation in the program.40 p. 13 HB 2144 NEW SECTION. Sec. 13. DROP-OFF CAPACITY FORMULA AND NETWORK 1 GROWTH AND REALIGNMENT. (1) The number of locations required to be 2 provided by the distributor responsibility organization in an 3 approved plan to achieve the redemption rate performance targets 4 required for the 2032 reporting year must be used to calculate a 5 drop-off capacity formula. The drop-off capacity formula is equal to 6 the ratio of drop-off locations required in the distributor 7 responsibility organization's approved plan to achieve the 2032 8 redemption rate performance targets to total anticipated sales of 9 beverages in qualifying beverage containers the prior year.10 (2) Five years after the distributor responsibility organization 11 begins operating a deposit return system, and every five years after 12 that, the distributor responsibility organization shall calculate an 13 updated number of drop-off locations required using the drop-off 14 capacity formula. If this calculation determines that the distributor 15 responsibility organization needs to add additional drop-off sites to 16 reach the number required by the drop-off capacity formula, the 17 distributor responsibility organization shall provide the department 18 with a list of proposed new locations, equal to the number determined 19 by the drop-off capacity formula, disbursed based on the factors 20 included in section 12 of this act and input from the consumer 21 convenience advisory council established in section 14 of this act. 22 The distributor responsibility organization shall make the new drop-23 off locations available within three years. 24 NEW SECTION. Sec. 14. CONSUMER CONVENIENCE ADVISORY COUNCIL. 25 (1) The distributor responsibility organization shall establish the 26 consumer convenience advisory council by January 1, 2026, or 60 days 27 after a distributor responsibility organization's registration is 28 approved by the department, whichever is later.29 (2) The consumer convenience advisory council shall include the 30 following members: (a) A representative of the distributor 31 responsibility organization charged with securing and making 32 available drop-off locations; (b) two representatives of a grocery 33 association or individual grocer with more than 10 retail locations 34 over 5,000 square feet in size in the state; (c) two representatives 35 of a city association, or individual city government, with one 36 representing a city with a population over 200,000 people; (d) two 37 representative of a county association, or individual county 38 government, with one representing an urban county and one 39 p. 14 HB 2144 representing a rural county; (e) an environmental organization; and 1 (f) an organization representing glass, plastic, or metal packaging 2 beverage container packaging. 3 (3) Any additional representatives beyond those specified in 4 subsection (2) of this section deemed by the distributor 5 responsibility organization to provide important insight into 6 assisting with the deployment of drop-off locations may be approved 7 by the department. 8 (4) The consumer convenience advisory council shall: (a) Work 9 with the distributor responsibility organization to identify 10 potential bag drop-off locations and achieve the consumer convenience 11 required in section 12 of this act; (b) provide input on the location 12 of new sites required by the drop-off capacity formula as described 13 in section 13 of this act; and (c) consult in the selection of the 14 third-party firm to conduct the consumer convenience assessment as 15 described in section 15 of this act. 16 (5) The consumer convenience advisory council shall meet at least 17 twice per year and more frequently at the request of the distributor 18 responsibility organization. 19 NEW SECTION. Sec. 15. CONSUMER CONVENIENCE ASSESSMENT AND 20 UPDATED PLAN SUBMISSIONS. (1)(a) In the fourth and ninth full year in 21 which a distributor responsibility organization operates a deposit 22 return system in the state, the distributor responsibility 23 organization, in consultation with the department and the consumer 24 convenience advisory council established in section 14 of this act, 25 shall retain a third-party consultant to conduct an assessment of 26 consumer convenience.27 (b) The distributor responsibility organization shall contract 28 with and pay for the independent third-party consultant to identify 29 any barriers to achieving the redemption rate performance 30 requirements in section 9 of this act. 31 (2) If the third-party assessment finds that the number of drop-32 off locations required in the distributor responsibility 33 organization's plan under section 9 of this act has not been reached, 34 or that the redemption rate is significantly below the redemption 35 rate performance targets in section 9 of this act, the consultant 36 shall make recommendations to the department, the distributor 37 responsibility organization, and the consumer convenience advisory 38 p. 15 HB 2144 council, regarding ways to increase consumer convenience and enhance 1 performance. 2 (3) A distributor responsibility organization shall submit an 3 updated plan to the department for review in the year following the 4 year of each consumer convenience assessment under this section and 5 shall address the recommendations included in the third-party 6 assessment. The department shall review the updated plans. If, in its 7 review of an updated plan, the department determines that the plan is 8 insufficient to meet the redemption rate performance targets in 9 section 9 of this act or the convenience requirements in section 12 10 of this act, it shall issue a notice of insufficiency to the 11 distributor responsibility organization, describing the ways in which 12 the distributor responsibility organization's plan is insufficient to 13 meet the performance and convenience requirements. Upon receipt of a 14 notice of insufficiency from the department, the distributor 15 responsibility organization has 60 days to submit an updated plan. 16 If, after 60 days, the distributor responsibility organization fails 17 to submit an updated plan, or if the updated plan does not adequately 18 address the elements of insufficiency identified by the department, 19 the department shall inform the appropriate committees of the house 20 of representatives and the senate of its analysis of the sufficiency 21 of the updated plans by December of the year in which the updated 22 plan was submitted. 23 NEW SECTION. Sec. 16. COORDINATION WITH PRODUCER RESPONSIBILITY 24 ORGANIZATIONS AND FACILITATING THE REDEMPTION OF QUALIFYING BEVERAGE 25 CONTAINERS COLLECTED THROUGH OTHER RECYCLING PATHWAYS. (1) Included 26 in its plan submitted to the department, the distributor 27 responsibility organization shall include a description of how the 28 distributor responsibility organization and the deposit return system 29 will coordinate with other recycling systems and processes, including 30 coordinating with producer responsibility organizations operating in 31 the state. As part of its coordination with producer responsibility 32 organizations, the distributor responsibility organization must 33 coordinate with any producer responsibility organization that 34 includes boxed wine in a plastic bladder as a covered product to 35 explore potential partnerships, efficiencies, and consumer 36 convenience available through cooperation between the systems.37 (2) The distributor responsibility organization must accept, and 38 must pay the full refund value for, any qualifying beverage 39 p. 16 HB 2144 containers returned to the distributor responsibility organization by 1 material recovery facilities, governmental entities, and other 2 processing facilities if all of the following criteria are met: (a) 3 The qualifying beverage containers have been collected and separated 4 in accordance with standards established by the distributor 5 responsibility organization and are delivered directly to a 6 distributor responsibility organization processing facility; (b) in 7 order to avoid redeeming containers not purchased in the state, the 8 material recovery facilities, governmental entities, and other 9 processing facilities may only handle or process materials from this 10 state, or provide third-party auditing and verification sufficient to 11 confirm that the containers being returned were recovered only from 12 material originating in the state; and (c) the containers are 13 separated by material type, not contaminated with other materials or 14 substances, and are not crushed, broken, or otherwise substantially 15 manipulated into a shape other than the shape of the container at the 16 time of purchase. 17 (3) The distributor responsibility organization's plan submitted 18 to the department must include a description of the standards for how 19 qualifying beverage containers must be collected, separated, and 20 delivered to a distributor responsibility organization processing 21 facility by material recovery facilities, governmental entities, and 22 other processing facilities in order to be eligible for a refund.23 (4) Nothing in this chapter requires a person, including a 24 business, to use the infrastructure provided by a deposit return 25 system created under this chapter or precludes the disposal or 26 recycling of qualifying beverage containers via curbside recycling 27 collection systems. 28 NEW SECTION. Sec. 17. ALTERNATIVE REDEMPTION PARTNERSHIPS FOR 29 PROVIDING IMMEDIATE REFUNDS TO CONSUMERS. (1) A distributor 30 responsibility organization operating a deposit return system shall 31 include in its plan a method to accept direct, sorted returns in 32 commercial quantities at its processing facilities for an additional 33 refund value premium if the containers are returned by organizations 34 certified as a nonprofit organization pursuant to section 501 (c)(3) 35 of the internal revenue code that are approved by the distributor 36 responsibility organization and serve very low-income individuals who 37 rely on regular container refunds through the deposit return system 38 as a source of daily funds. The distributor responsibility 39 p. 17 HB 2144 organization may provide pick-up service for containers collected 1 under this section. 2 (2) To limit fraud and ensure that services are deployed where 3 they are most needed, the distributor responsibility organization may 4 approve or deny partnerships described in this section at its sole 5 discretion. 6 (3) The distributor responsibility organization plan submitted 7 under section 10 of this act must include a: (a) Description of how 8 it will establish partnerships with nonprofit organizations receiving 9 the additional refund value premium; and (b) process for annually 10 reporting to the department regarding the names, locations, return 11 volume, and any other services provided through the partnership.12 NEW SECTION. Sec. 18. ANNUAL REPORTING ON ACTIVITIES. (1) 13 Beginning July 1st of the year following the year a distributor 14 responsibility organization begins operating a deposit return system 15 in the state, and every July 1st thereafter, a distributor 16 responsibility organization must submit an annual report to the 17 department for the preceding calendar year of plan implementation.18 (2) Each annual report must include the following information:19 (a) A list of its member distributors and their brands of 20 beverages in qualifying beverage containers; 21 (b) The number of qualifying beverage containers supplied into 22 the state in aggregate and by material categories of glass, metal, 23 and plastic, by members of the distributor responsibility 24 organization; 25 (c) (i) The number of beverages in reusable containers that were 26 supplied into the state in aggregate and by material categories of 27 glass, metal, and plastic, by members of the distributor 28 responsibility organization; 29 (ii) A report describing the successes, challenges, and 30 opportunities for refillable bottles in Washington; and31 (iii) A statistical sample or other available data providing an 32 estimate of the reuse rates of reusable containers for beverages;33 (d) The number of qualifying beverage containers redeemed in 34 aggregate and by material categories of glass, metal, and plastic, 35 including reusable containers, through the deposit return system 36 operated by the distributor responsibility organization;37 (e) A list and explanation of beverage types in qualifying 38 beverage containers supplied or sold in Washington by members of the 39 p. 18 HB 2144 distributor responsibility organization and brands of qualifying 1 beverage containers participating in the deposit return system;2 (f) The amount and final destination of recycled material and 3 disposed material managed by the program; 4 (g) The total budget for the distributor responsibility 5 organization; 6 (h) The total value of unclaimed refunds, including unclaimed 7 refunds used by the distributor responsibility organization to 8 support operations; 9 (i) The annual redemption rate by qualifying beverage container 10 material category and reuse sales rate; and 11 (j) For drop-off bags made of film plastic, reporting on their 12 postconsumer recycled content and the recycling markets for the used 13 bags. 14 (3) The reporting described in subsection (2)(b) of this section 15 does not include containers that are sold to dealers outside of the 16 state or to other entities for delivery outside of the state.17 (4) A distributor responsibility organization may rely on member 18 reporting for the reporting requirements in this chapter.19 (5) Included in its annual report, a distributor responsibility 20 organization shall provide verification from a third-party financial 21 auditing firm confirming: (a) The total budget for the distributor 22 responsibility organization and the total cost of implementing the 23 plan approved by the department; (b) the total value of unclaimed 24 refunds; (c) a verification that funds represented by unclaimed 25 refunds were not distributed to members of the cooperative as a 26 dividend or similar form of profit; and (d) a verification that funds 27 represented by unclaimed refunds were not used for legislative or 28 political advocacy efforts that require reporting under chapter 29 42.17A RCW . 30 NEW SECTION. Sec. 19. DENIAL OF REFUND VALUE FOR SOME 31 QUALIFYING BEVERAGE CONTAINERS. (1) The distributor responsibility 32 organization is not required to accept or pay refunds for:33 (a) Beverage containers visibly containing or contaminated by a 34 substance other than water, residue of the original contents, or 35 ordinary dust; 36 (b) Beverage containers that are crushed, broken, or damaged to 37 the extent that the brand appearing on the container cannot be easily 38 identified; 39 p. 19 HB 2144 (c) Any beverage container for which the distributor 1 responsibility organization has reasonable grounds to believe was not 2 purchased through the state's deposit return system or for which a 3 refund has already been given. 4 (2) In the case of subsection (1)(c) of this section, the 5 distributor responsibility organization shall include in its plan 6 submittal to the department a description of the reasonable grounds 7 it will use to determine if a refund should be rejected for a 8 qualifying beverage container. 9 NEW SECTION. Sec. 20. EDUCATION AND OUTREACH ACTIVITIES. (1) 10 Each plan implemented by a distributor responsibility organization 11 under this chapter must include education and outreach activities 12 that effectively reach diverse residents, are accessible, are clear, 13 and support the achievement of the redemption rate performance 14 requirements described in section 9 of this act.15 (2) To implement the education and outreach activities described 16 in the plan, a distributor responsibility organization must, at 17 minimum: 18 (a) Develop and provide outreach and educational materials, 19 resources, and campaigns about the program to be used by the 20 distributor responsibility organization, dealers, governmental 21 entities, and nonprofit organizations. The materials, resources, and 22 campaigns developed under this subsection to encourage participation 23 in the deposit return system must, at minimum provide:24 (i) Information to residents on recycling and reuse practices 25 related to the deposit return system, including where and how to 26 redeem qualifying beverage containers, and what happens to containers 27 once they are returned; and 28 (ii) Education and engagement with users of the deposit return 29 system to reduce the rate of inbound contamination or unwanted 30 materials; 31 (b) Use media channels that may include, but are not limited to, 32 print publications, radio, television, the internet, and online 33 streaming services to promote the program statewide;34 (c) Use consistent and easy to understand messaging and education 35 statewide, with the aim of reducing resident confusion regarding the 36 recyclability, reuse, compostability, and end-of-life management 37 options available for different qualifying beverage containers;38 p. 20 HB 2144 (d) Be conceptually, linguistically, and culturally accurate for 1 the communities served and tailored to effectively reach the state's 2 diverse populations, including through meaningful consultation with 3 overburdened communities and vulnerable populations;4 (e) Establish a process for answering customer questions and 5 resolving customer concerns; 6 (f) Provide a map of each area where drop-off and other 7 collection services for qualifying beverage containers are available 8 on its website; and 9 (g) Evaluate the effectiveness of education and outreach efforts 10 for the purposes of making progress toward the redemption rate 11 performance requirements established in section 9 of this act.12 (3) A distributor responsibility organization may coordinate with 13 governmental entities that choose to participate in carrying out 14 resident education and outreach regarding the deposit return system.15 NEW SECTION. Sec. 21. SMALL-SCALE REFUND PROGRAM. (1) A 16 distributor that is also a manufacturer may submit a plan to the 17 department to operate a small-scale refund program for beverages in 18 qualifying beverage containers produced by the manufacturer, and the 19 department may approve the plan if it meets all of the following 20 criteria:21 (a) The manufacturer sells or distributes no more than 10,000 22 beverages in qualifying beverage containers per year in the state;23 (b) The beverages are packages in reusable qualifying beverage 24 containers; 25 (c) The manufacturer offers a refund value for the containers 26 that is greater than the refund value for containers redeemed by the 27 distributor responsibility organization; 28 (d) The department determines that the plan includes return 29 pathways and options that are convenient for consumers returning 30 their brand of beverage containers covered by the plan for a refund; 31 and 32 (e) The plan includes annual reporting requirements that, in the 33 department's determination, are sufficient to measure the performance 34 of the small-scale refund program. 35 (2) If the department approves a small-scale refund program plan 36 as described in this section, the distributor manufacturer operating 37 a plan approved by the department is not subject to the requirements 38 of distributors independently complying with the requirements in this 39 p. 21 HB 2144 chapter for those containers covered by the small-scale refund 1 program plan. 2 (3) Reusable containers sold through a program approved through 3 this section count towards the reusable container performance 4 requirements described in section 9 of this act. 5 (4) The department may revoke plan approval for a manufacturer 6 distributor operating a small-scale refund program at any time if, in 7 its sole discretion, the department determines that the program is 8 not providing sufficient performance or not meeting the consumer 9 convenience requirements submitted with its plan. 10 NEW SECTION. Sec. 22. RECYCLING REVENUE AUGMENTATION FUNDING 11 PROGRAM. (1) For the first five years in which a deposit return 12 system is operated by a distributor responsibility organization in 13 this state, a distributor responsibility organization shall remit 14 $15,000,000 by December 31st of each year to the department of 15 commerce's recycling revenue augmentation account created in section 16 23 of this act. If the first year of operation of a deposit return 17 system begins after January 1st, the payment amount must be prorated 18 in accordance with the portion of the year in which the deposit 19 return system is operating. These payments constitute the full 20 financial obligation of the distributor responsibility organization 21 to the recycling revenue augmentation funding program.22 (2) The department of commerce shall administer the recycling 23 revenue augmentation funding program, which must, for the first five 24 years in which a distributor responsibility organization operates a 25 deposit return system in this state: 26 (a) Collect funds from a distributor responsibility organization 27 as described in subsection (1) of this section; and28 (b) Beginning January 1st of the year following the year in which 29 a distributor responsibility organization first operates a deposit 30 return system in the state, and each January 1st for the following 31 four years, accept requests annually from local governments, or 32 operators of curbside or drop-off recycling programs in the state, or 33 both, to receive funds from the recycling revenue augmentation 34 funding program to offset revenue losses from the previous calendar 35 year from scrap material being diverted to the deposit return system.36 (3) Requests consistent with subsection (2)(b) of this section 37 must be received by the department of commerce by July 1st of each 38 year for the preceding calendar year. These requests must include 39 p. 22 HB 2144 third-party audited financial data demonstrating any revenue losses 1 from the value of scrap materials diverted from curbside or drop-off 2 recycling programs by a deposit return system, less any decreased 3 operating costs from not collecting, hauling, processing, or 4 landfilling the material, less any new revenue provided through other 5 producer responsibility programs created by the legislature in 2024 6 or later that offsets or partially offsets revenue losses, and less 7 any material weight losses represented by the operator serving fewer 8 accounts. For local government and publicly operated curbside or 9 drop-off recycling programs, the governmental entity's annual audit 10 may satisfy the audited data requirement of this section if the 11 department of commerce determines that it is sufficient to verify the 12 claim. Each request must include the average total tons of glass, 13 plastic, and metal for that applicant for the three years preceding 14 the operation of a deposit return system in the state, compared to 15 the total tons of glass, plastic, and metal material for the year for 16 which payments are requested. 17 (4) The department of commerce shall: (a) Evaluate all requests 18 annually and determine the validity of the data submitted by each 19 requester; (b) reject requests that do not include sufficient or 20 sufficiently accurate data; (c) make payments from the recycling 21 revenue augmentation account created in section 23 of this act to 22 operators of curbside and drop-off recycling systems proportionally, 23 based on valid requests and available revenue in the account; and (d) 24 after the close of each calendar year, remit any unobligated balance 25 in the recycling revenue augmentation account created in section 23 26 of this act to the distributor responsibility organization.27 NEW SECTION. Sec. 23. RECYCLING REVENUE AUGMENTATION ACCOUNT. 28 The recycling revenue augmentation account is created in the custody 29 of the state treasurer. All receipts received by the department of 30 commerce under section 22 of this act must be deposited in the 31 account. Expenditures from the account may be used by the department 32 of commerce only for implementing and administering the requirements 33 of this chapter. Only the director of the department of commerce or 34 the director's designee may authorize expenditures from the account. 35 The account is subject to the allotment procedures under chapter 36 43.88 RCW , but an appropriation is not required for expenditures.37 p. 23 HB 2144 NEW SECTION. Sec. 24. DEPOSIT RETURN ORGANIZATION PROGRAM 1 ACCOUNT. The deposit return organization program account is created 2 in the custody of the state treasurer. All receipts received by the 3 department under this chapter must be deposited in the account. 4 Expenditures from the account may be used by the department only for 5 implementing, administering, and enforcing the requirements of this 6 chapter. Only the director of the department or the director's 7 designee may authorize expenditures from the account. The account is 8 subject to the allotment procedures under chapter 43.88 RCW, but an 9 appropriation is not required for expenditures.10 NEW SECTION. Sec. 25. MINIMUM POSTCONSUMER RECYCLED CONTENT OF 11 DROP-OFF BAGS. If drop-off bags used for qualifying beverage 12 containers under a deposit return system are made of plastic film, 13 bags must have a minimum postconsumer recycled content that equals 14 the minimum postconsumer recycled content standard under chapter 15 70A.245 RCW for plastic trash bags and the distributor responsibility 16 organization must be able to demonstrate that the recovered film from 17 bags is recycled.18 NEW SECTION. Sec. 26. CIVIL PENALTIES FOR DISTRIBUTOR 19 RESPONSIBILITY ORGANIZATIONS. (1) Upon notice of a significant 20 violation of the deposit return system plan or performance 21 requirements of this chapter by a distributor responsibility 22 organization, and after a cure period of at least 60 days, the 23 department may assess a civil penalty of at least $200 per violation 24 per day, but no more than $500 per violation per day.25 (2) The department shall make its best efforts to work with the 26 distributor responsibility organization to remedy issues without the 27 use of penalties and make reasonable accommodations when the nature 28 of the violation is significantly outside of the distributor 29 responsibility organization's control or is not feasible for the 30 distributor responsibility organization to quickly remedy.31 (3) A failure to achieve the redemption rate performance 32 requirements specified in section 9 of this act is not subject to the 33 penalties described in this section and is instead subject to the 34 penalties described in section 9 of this act. 35 (4) A civil penalty may not be assessed based on the reuse sales 36 rate performance requirements. 37 p. 24 HB 2144 NEW SECTION. Sec. 27. CONTINGENCY. If a distributor 1 responsibility organization ceases to exist and operate a deposit 2 return system in Washington, other than for temporary disruptions due 3 to unforeseen circumstances, as determined by the department, or if a 4 distributor responsibility organization and the department fail to 5 reach agreement on an initial plan to operate a deposit return 6 system, the deposit return system must be discontinued, the 7 requirements and provisions of this chapter may not be enforced, and 8 qualifying beverage containers become covered products under any 9 relevant extended producer responsibility programs that apply.10 NEW SECTION. Sec. 28. A new section is added to chapter 82.04 11 RCW to read as follows: 12 In computing tax due under this chapter, a taxpayer may deduct 13 from the measure of tax amounts derived from charges for the refund 14 value of qualifying beverage containers as required under chapter 15 70A.--- RCW (the new chapter created in section 36 of this act). To 16 qualify for this deduction, the taxpayer must separately itemize the 17 charges for the refund value on a receipt, invoice, or similar 18 billing document given to the purchaser. The amount of the deduction 19 claimed under this section for a reporting period may not exceed the 20 aggregate charges for the refund value of qualifying beverage 21 containers for beverages sold by the taxpayer during such a reporting 22 period. 23 Sec. 29. RCW 82.19.050 and 2005 c 289 s 1 are each amended to 24 read as follows: 25 The litter tax imposed in this chapter does not apply to:26 (1) The manufacture or sale of products for use and consumption 27 outside the state; 28 (2) The value of products or gross proceeds of the sales exempt 29 from tax under RCW 82.04.330; 30 (3) The sale of products for resale by a qualified grocery 31 distribution cooperative to customer-owners of the grocery 32 distribution cooperative. For the purposes of this section, 33 "qualified grocery distribution cooperative" and "customer-owner" 34 have the meanings given in RCW 82.04.298; 35 (4) The sale of food or beverages by retailers that are sold 36 solely for immediate consumption indoors at the seller's place of 37 business or at a deck or patio at the seller's place of business, or 38 p. 25 HB 2144 indoors at an eating area that is contiguous to the seller's place of 1 business; ((or))2 (5)(a) The sale of prepared food or beverages by caterers where 3 the food or beverages are to be served for immediate consumption in 4 or on individual nonsingle use containers at premises occupied or 5 controlled by the customer. 6 (b) For the purposes of this subsection, the following 7 definitions apply: 8 (i) "Prepared food" has the same meaning as provided in RCW 9 82.08.0293. 10 (ii) "Nonsingle use container" means a receptacle for holding a 11 single individual's food or beverage that is designed to be used more 12 than once. Nonsingle use containers do not include pizza delivery 13 bags and similar insulated containers that do not directly contact 14 the food. Nonsingle use containers do not include plastic or paper 15 plates or other containers that are disposable. 16 (iii) "Caterer" means a person contracted to prepare food where 17 the final cooking or serving occurs at a location selected by the 18 customer; or19 (6) The charge for the refund value of qualifying beverage 20 containers as required under chapter 70A.--- RCW (the new chapter 21 created in section 36 of this act), if the charge is separately 22 stated on a receipt, invoice, or similar billing document given to 23 the purchaser . 24 NEW SECTION. Sec. 30. The provisions of RCW 82.32.805 and 25 82.32.808 do not apply to sections 28 and 29 of this act.26 NEW SECTION. Sec. 31. A new section is added to chapter 35.21 27 RCW to read as follows: 28 Permitting or siting procedures applicable to a storage or drop-29 off container under chapter 70A.--- RCW (the new chapter created in 30 section 36 of this act) must be consistent with section 12 (6) of this 31 act. 32 NEW SECTION. Sec. 32. A new section is added to chapter 35A.21 33 RCW to read as follows: 34 Permitting or siting procedures applicable to a storage or drop-35 off container under chapter 70A.--- RCW (the new chapter created in 36 p. 26 HB 2144 section 36 of this act) must be consistent with section 12 (6) of this 1 act. 2 NEW SECTION. Sec. 33. A new section is added to chapter 36.01 3 RCW to read as follows: 4 Permitting or siting procedures applicable to a storage or drop-5 off container under chapter 70A.--- RCW (the new chapter created in 6 section 36 of this act) must be consistent with section 12 (6) of this 7 act. 8 Sec. 34. RCW 70A.245.100 and 2021 c 313 s 13 are each amended to 9 read as follows: 10 The recycling enhancement account is created in the custody of 11 the state treasurer. All penalties collected by the department 12 pursuant to RCW 70A.245.040 and 70A.245.050 and chapter 70A.--- RCW 13 (the new chapter created in section 36 of this act) must be deposited 14 in the account. Only the director of the department or the director's 15 designee may authorize expenditures from the account. The account is 16 subject to the allotment procedures under chapter 43.88 RCW, but an 17 appropriation is not required for expenditures. Expenditures from the 18 account may be used by the department only for providing grants to 19 local governments for the purpose of supporting local solid waste and 20 financial assistance programs. 21 NEW SECTION. Sec. 35. (1) In consultation with distributor 22 responsibility organizations under this chapter, the department and 23 the department of revenue must study:24 (a) The impacts of distributor requirements under this chapter on 25 the litter rates of covered products and qualifying beverage 26 containers under this chapter; and 27 (b) Possible improvements to the structure of the litter tax 28 under chapter 82.19 RCW including, but not limited to, 29 administration, compliance, and distribution of the tax and 30 application of the tax to certain products, for achieving the purpose 31 of chapter 82.19 RCW . 32 (2) By January 1, 2030, the department, in consultation with the 33 department of revenue, must provide recommendations to the 34 appropriate committees of the legislature on: 35 (a) Applicability of the litter tax to covered products and 36 qualifying beverage containers, based on whether the purpose of the 37 p. 27 HB 2144 litter tax under chapter 82.19 RCW is being achieved for those 1 products by the requirements of producers and distributors under this 2 chapter; and 3 (b) Improvements to the structure of the litter tax for meeting 4 the purposes of chapter 82.19 RCW . 5 (3) This section expires July 1, 2030. 6 NEW SECTION. Sec. 36. Sections 1 through 27 and 35 of this act 7 constitute a new chapter in Title 70A RCW.8 --- END --- p. 28 HB 2144