Rhode Island House Bill 7279 (2022) - (Failed)

Packaging material is defined as a material used for the containment, protection, delivery, presentation, or distribution of a product at the time that the product leaves a point of sale with or is received by the consumer of the product.

There are a number of exclusions to the definition of packaging material. These include:

1. Packaging intended to be used for the long-term storage or protection of a durable product for a period of at least 5 years.
2. Beverage containers.

3.Packaging that is reusable.

Producer is defined as an entity that manufactures, uses in a commercial enterprise, sells, offers for sale, or distributes packaging material in the state under the brand of the manufacturer. A "Low-volume Producer" is included in the definition of producer and means a producer that sold, offered for sale, or distributed for sale in the state during the prior calendar year more than one, but less than fifteen (15) tons of packaging material in total.

Producer is also defined as an entity that is not the manufacturer of the packaging material, but is the owner or licensee of a trademark under which the covered product is used.

Producer is also includes an entity that imports the packaging material into the United States or the state for use in a commercial enterprise, sale, offer for sale, or distribution in the state. Franchisee's operating the franchise are not included, but the franchisor of a franchise located in the state is.

A producer is excluded if they realized less than two million dollars ($2,000,000) in total gross revenue during the prior calendar year or sold, offered for sale, or distributed for sale in or into the state during the prior calendar year products contained, protected, delivered, presented, or distributed in or using less than one ton of packaging material in total.

The state will select a packaging stewardship organization via a competitive bid process. The state will enter into a contract with a packaging stewardship organization to coordinate the packaging stewardship program. However, producers are individually responsible for compliance with the regulation.

The PRO is responsible for establishing and managing a packaging responsibility fund, funded through fees from covered producers. The fund will be used for eligible projects that reduce packaging waste by investing in reuse and refill systems, recycling infrastructure, and reuse, refill, and recycling education in the state.

Program funds will be used to cover operational costs associated with managing packaging material including collection, transportation, and processing.

A portion of program funding will be used for efforts designed to improve recycling education in the state.

Program funds will be used to reimburse the department for costs associated with administering the requirements of this legislation and implementing rules and regulations.

A portion of program funding will be used for efforts designed to improve recycling infrastructure in the state.

Low-volume producers may elect to pay a flat fee on a tiered basis in lieu of a material-specific producer payment. Low-volume producer means a producer that sold, offered for sale, or distributed for sale in or into the State products using more than one ton but less than 15 tons of packaging material in total in the previous year.

The state will develop rules, with public input, that determine payment calculations. This must include rules that require the amount of a producer's payment to reflect the costs associated with managing the producer's packaging material type and quantity.

The rules determining fee calculations must include consideration of modulated fees that encourage certain packaging characteristics, such as reusability and incorporation of recycled content.

Rules determining fee calculation must include criteria to adjust payments in a manner that incentivizes the use of recycled content.

There will not be any packaging fees for reusable or refillable packaging.

Rules determining fee calculation must include criteria to adjust payments in a manner that incentivizes the increased recyclability of packaging material. Fees will be higher if the packaging is not readily recyclable.

Each producer must ensure that all non-reusable packaging, across its entire brand, either is recycled at a rate consistent with the following schedule:

1. Fifty percent (50%), five (5) years after the selection of the producer responsibility organization
2. Eighty percent (80%), eight (8) years after the selection of the producer responsibility organization

Ninety percent (90%), twelve (12) years after the selection of the producer responsibility organization by the department

Or incorporates, on average and in the aggregate, the following amount by weight of post- consumer recycled material:

1. Fifty percent (50%), five (5) years after the selection of the producer responsibility organization.
2. Eighty percent (80%), eight (8) years after the selection of the producer responsibility organization.
3. Ninety percent (90%), twelve (12) years after the selection of the producer responsibility organization.

Material specific recycling rate goals will be set within the program.

A producer shall reduce the total amount by unit, on average and in the aggregate, of non-reusable packaging across its brand in accordance with the following schedule: Ten percent, two years after the selection of the producer responsibility organization by the department, twenty percent, four years after the selection of the producer responsibility organization by the department, thirty percent, six years after the selection of the producer responsibility organization by the department, forty percent, eight years after the selection of the producer responsibility organization by the department and fifty percent, ten years after the selection of the producer responsibility organization by the department.

Within two calendar years of the effective date, a producer may not sell, offer for sale, or distribute for sale in or into the state a product contained, protected, delivered, presented, or distributed in or using packaging material for which the producer has not complied with all applicable requirements the program.

The department shall evaluate the program each year to ensure its proper functioning and prevent fraud, waste, or abuse in the expenditure of funds.

The producer responsibility organization shall annually submit a report that is made available publicly.

The department shall administer and enforce this chapter. The department shall have the authority to investigate the producer responsibility organization for compliance with all provisions of this chapter and may bring an enforcement action against the producer responsibility organization for failure to comply.

The stewardship organization bid must include a description of how the bidder intends to solicit and consider input from stakeholders, including producers, municipalities, environmental organizations, and waste management and recycling establishments, regarding the bidder's operation of the program.

Readily recyclable is defined as a packaging material that can be sorted by facilities within the state and has a consistent market for purchase. Consistent market for purchase means that processors are willing to purchase full bales of that type of fully sorted packaging material in quantities equal to or in excess of the supply of that fully sorted packaging material. Readily recyclable does not include packaging material that are generally accepted only in small quantities.

Recycling means the series of activities by which a covered product is collected, sorted, and processed, converted into a raw material with minimal loss of material quality, and used in the production of a new product to replace the use of virgin materials.

"Recycling" does not include energy recovery or energy generation by means of combustion, incineration, pyrolysis, gasification, solvolysis, waste to fuel or any high-heat or chemical conversion process; or landfill disposal of discarded covered products or discarded product component materials.

Beginning three years after the effective date of these regulations, and every three years subsequent, the department shall designate at least ten, but no more than twenty, toxic substances in packaging, unless it determines there are not ten chemicals that meet the definition of toxic substances. If the department determines there are not ten toxic substances that meet the definition, it must publish a detailed statement of findings and conclusions supporting that determination. Within one hundred eighty days of designating a toxic substance, the department shall adopt rules and regulations to prohibit the newly designated toxic substance in packaging. Beginning three years after the effective date, any person may petition the department to add a chemical or chemical class to the list of toxic substances in packaging.

The department shall conduct a foundational needs assessment within the state to determine the barriers and opportunities to reduce packaging waste and increase waste reduction, reuse, refilling and recycling

Producers must indicate on all packaging material sold, offered for sale, or distributed for sale in or into the state either: The percentage of post-consumer recycled material, whether the packaging material is readily-recyclable and how to recycle such unit; or whether the unit is compostable. The department will determine appropriate labels. All packaging material sold in the state must conform with the uniform labeling system within two years of the effective date. Packaging that does not meet the requirements of this section may not be sold, offered for sale, or distributed for sale into the state.