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art.005/1

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     ARTICLE 5

RELATING TO ENERGY AND THE ENVIRONMENT

     SECTION 1. Sections 23-24.12-2 and 23-24.12-3 of the General Laws in Chapter 23-24.12

entitled “Proper Management of Unused Paint” are hereby amended to read as follows:

     23-24.12-2. Management of unused architectural paint — Definitions.

     (1) “Architectural paint” means interior and exterior architectural coatings sold in

containers of five (5) gallons or less. Architectural paint does not include industrial, original

equipment or specialty coatings.

     (2) “Department” means the department of environmental management.

     (3) “Director” means the director of the department of environmental management.

     (4) “Distributor” means a company that has a contractual relationship with one or more

producers to market and sell architectural paint to retailers in this state.

     (5) “Environmentally sound management practices” means procedures for the collection,

storage, transportation, reuse, recycling and disposal of architectural paint, to be implemented by

the representative implementing organization or such representative implementing organization’s

contracted partners to ensure compliance with all applicable federal, state and local laws,

regulations and ordinances and the protection of human health and the environment.

Environmentally sound management practices include, but are not limited to, record keeping, the

tracking and documenting of the use and disposition of post-consumer paint in and outside of this

state, and environmental liability coverage for professional services and for the operations of the

contractors working on behalf of the representative implementing organization.

     (6) “Paint stewardship assessment” means the amount added to the purchase price of

architectural paint sold in this state that is necessary to cover the cost of collecting, transporting

and processing post-consumer paint by the representative implementing organization pursuant to

the paint stewardship program.

     (7) “Post-consumer paint” means architectural paint that is not used and that is no longer

wanted by a purchaser of architectural paint.

     (8) “Producer” means a manufacturer of architectural paint who sells, offers for sale,

distributes or contracts to distribute architectural paint in this state.

     (9) “Recycling” means any process by which discarded products, components and by-

products are transformed into new, usable or marketable materials in a manner in which the original

products may lose their identity.

     (10) “Representative Implementing organization” means the nonprofit organization created

by producers selected by the department to implement the paint stewardship program described in

§ 23-24.11-3 23-24.12-3.

     (11) “Retailer” means any person who offers architectural paint for sale at retail in this

state.

     (12) “Reuse” means the return of a product into the economic stream for use in the same

kind of application as the product was originally intended to be used, without a change in the

product’s identity.

     (13) “Sell” or “sale” means any transfer of title for consideration including, but not limited

to, remote sales conducted through sales outlets, catalogues, the Internet or any other similar

electronic means.

     23-24.12-3. Establishment of paint stewardship program.

     (a) On or before March 1, 2014, each producer shall join the representative organization

and such representative organization shall submit a plan for the establishment of a paint stewardship

program to the department for approval. The program shall minimize the public sector involvement

in the management of post-consumer paint by reducing the generation of post-consumer paint,

negotiating agreements to collect, transport, reuse, recycle, and/or burn for energy recovery at an

appropriately licensed facility post-consumer paint using environmentally sound management

practices. No later than December 31, 2023, and every five years thereafter, the department shall

issue a solicitation seeking an organization or entity to implement and administer the paint

stewardship program as described in this section. The solicitation shall be competitive and

administered consistent with state procurement law. The paint stewardship program in effect at the

time that this statute is enacted shall remain in effect until such time as an organization or entity is

selected by the department to administer the program.

     (b) The program shall also provide for convenient and available state-wide collection of

post-consumer paint that, at a minimum, provides for collection rates and convenience greater than

the collection programs available to consumers prior to such paint stewardship program; propose a

paint stewardship assessment; include a funding mechanism that requires each producer who

participates in the representative organization to remit to the representative organization payment

of the paint stewardship assessment for each container of architectural paint sold within the state;

include an education and outreach program to help ensure the success of the program; and, work

with the department and Rhode Island commerce corporation to identify ways in which the state

can motivate local infrastructure investment, business development and job creation related to the

collection, transportation and processing of post-consumer paint. Each proposal submitted to the

department shall include, at a minimum, the following elements:

     (1) Recommendations to minimize the public sector involvement in the management of

post-consumer paint by reducing the generation of post-consumer paint, negotiating agreements to

collect, transport, reuse, recycle, and/or burn for energy recovery at an appropriately licensed

facility post-consumer paint using environmentally sound management practices.

     (2) A proposed program that will provide for convenient and available state-wide collection

of post-consumer paint that, at a minimum, provides for collection rates and convenience greater

than the collection programs available to consumers prior to such paint stewardship program;

propose a paint stewardship assessment; include a funding mechanism that requires each producer

to remit to the implementing organization payment of the paint stewardship assessment for each

container of architectural paint sold within the state; include an education and outreach program to

help ensure the success of the program; and, work with the department and Rhode Island commerce

corporation to identify ways in which the state can motivate local infrastructure investment,

business development and job creation related to the collection, transportation and processing of

post-consumer paint.

     (c) The plan submitted to the department pursuant to this section shall Each proposal shall

also:

     (1) Identify each producer participating that will participate in the paint stewardship

program and the brands of architectural paint sold in this state covered by the program;

     (2) Identify how the representative implementing organization will provide convenient,

statewide accessibility to the program;

     (3) Set forth the process by which an independent auditor will be selected and identify the

criteria used by the representative implementing organization in selecting an independent auditor;

     (4) Identify, in detail, the educational and outreach program that will be implemented to

inform consumers and retailers of the program and how to participate;

     (5) Identify the methods and procedures under which the paint stewardship program will

be coordinated with the Rhode Island resource recovery corporation;

     (6) Identify, in detail, the operational plans for interacting with retailers on the proper

handling and management of post-consumer paint;

     (7) Include the proposed, audited paint assessment as identified in this section;

     (8) Include the targeted annual collection rate; and

     (9) Include a description of the intended treatment, storage, transportation and disposal

options and methods for the collected post-consumer paint.; and

     (10) Be accompanied by a fee in the amount of two thousand five hundred dollars ($2,500)

to be deposited into the environmental response fund to cover the review of said plan by the

department.

     (d) Not later than sixty (60) days after submission of a plan pursuant to this section, the

department shall make a determination whether to:

     (1) Approve the plan as submitted;

     (2) Approve the plan with conditions; or

     (3) Deny the plan.

     (e) Not later than three (3) months after the date the plan is approved, the representative

organization shall implement the paint stewardship program.

     (fd) On or before March 1, 2014, the representative organization Each proposal shall

propose a uniform paint stewardship assessment for all architectural paint sold in this state. The

proposed paint stewardship assessment shall be sufficient to cover the costs of administering the

program. The assessment may also be used to create a reserve fund, provided that such reserve fund

shall not exceed 50% of projected program costs in any given year. If the reserve fund is projected

to exceed 50% of projected program costs, the implementing organization shall immediately

propose to the department an amendment to the approved plan which will reduce the paint

stewardship assessment in the following calendar year by an amount sufficient to cause the reserve

fund to not exceed 50% of projected program costs. The department shall have the authority to cap

administrative expenses at a percentage of program costs as part of any contract awarded to

administer the paint stewardship program. Such proposed paint stewardship assessment shall be

reviewed by an independent auditor to assure that such assessment is consistent with the budget of

the paint stewardship program described in this section and such independent auditor shall

recommend an amount for such paint stewardship assessment to the department. The department

shall be responsible for the approval of such paint stewardship assessment based upon the

independent auditor’s recommendation. If the paint stewardship assessment previously approved

by the department pursuant to this section is proposed to be changed, the representative

organization shall submit the new, adjusted uniform paint stewardship assessment to an

independent auditor for review. After such review has been completed, the representative

organization shall submit the results of said auditor’s review and a proposal to amend the paint

stewardship assessment to the department for review. The department shall review and approve, in

writing, the adjusted paint stewardship assessment before the new assessment can be implemented.

Any proposed changes to the paint stewardship assessment shall be submitted to the department no

later than sixty (60) days prior to the date the representative organization anticipates the adjusted

assessment to take effect.

     (ge) On and after the date of implementation of the paint stewardship program pursuant to

this section, the paint stewardship assessment shall be added to the cost of all architectural paint

sold to retailers and distributors in this state by each producer. On and after such implementation

date, each retailer or distributor, as applicable, shall add the amount of such paint stewardship

assessment to the purchase price of all architectural paint sold in this state.

     (hf) Any retailer may participate, on a voluntary basis, as a paint collection point pursuant

to such paint stewardship program and in accordance with any applicable provision of law or

regulation.

     (ig) Each producer and the representative implementing organization shall be immune from

liability for any claim of a violation of antitrust law or unfair trade practice if such conduct is a

violation of antitrust law, to the extent such producer or representative implementing organization

is exercising authority pursuant to the provisions of this section.

     (jh) Not later than the implementation date of the paint stewardship program, the

department shall list the names of participating producers the brands of architectural paint covered

by such paint stewardship program and the cost of the approved paint stewardship assessment on

its website.

     (ki)(1) On and after the implementation date of the paint stewardship program, no producer,

distributor or retailer shall sell or offer for sale architectural paint to any person in this state if the

producer of such architectural paint is not a member of paint stewardship assessment is not

collected and remitted to the representative implementing organization.

     (2) No retailer or distributor shall be found to be in violation of the provisions of this section

if, on the date the architectural paint was ordered from the producer or its agent, the producer or

the subject brand of architectural paint was listed on the department’s website in accordance with

the provisions of this section.

     (lj) Producers or the representative implementing organization shall provide retailers with

educational materials regarding the paint stewardship assessment and paint stewardship program

to be distributed at the point of sale to the consumer. Such materials shall include, but not be limited

to, information regarding available end-of-life management options for architectural paint offered

through the paint stewardship program and information that notifies consumers that a charge for

the operation of such paint stewardship program is included in the purchase price of all architectural

paint sold in this state.

     (mk) On or before October 15, 2015, and annually thereafter, the representative

implementing organization shall submit a report to the director of the department of environmental

management that details the paint stewardship program. Said report shall include a copy of the

independent audit detailed in subdivision (4) below. Such annual report shall include, but not be

limited to:

     (1) A detailed description of the methods used to collect, transport and process post-

consumer paint in this state;

     (2) The overall volume of post-consumer paint collected in this state;

     (3) The volume and type of post-consumer paint collected in this state by method of

disposition, including reuse, recycling and other methods of processing or disposal;

     (4) The total cost of implementing the program, as determined by an independent financial

audit, as performed by an independent auditor;

     (5) An evaluation of the adequacy of the program’s funding mechanism;

     (6) Samples of all educational materials provided to consumers of architectural paint and

participating retailers; and

     (7) A detailed list of efforts undertaken and an evaluation of the methods used to

disseminate such materials including recommendations, if any, for how the educational component

of the program can be improved.

     (nl) The representative implementing organization shall may update the plan, as needed,

when there are changes proposed to the current program. An new plan or amendment to the existing

plan will be required to be submitted to the department for approval when:

     (1) There is a proposed change to the amount of the assessment; or

     (2) There is an addition to the products covered under the program; or

     (3) There is a revision of the product stewardship organization’s goals.: or

     (4) Every four (4) years, if requested, in writing, by the department the representative

organization shall notify the department annually, in writing, if there are no changes proposed to

the program and the representative organization intends to continue implementation of the program

as previously approved by the department.

     (m) Upon selection of a new implementing organization to administer the paint stewardship

program, the program shall be audited by the independent auditor and, upon certification of the

audit by the department, any funds held by the previous implementing organization shall be

immediately transferred to the department. These funds shall then be transferred by the department

to the new implementing organization for use in administering the approved paint stewardship

program.

     (n) If there are no respondents to the solicitation required by this section, or the department

determines that none of the responses are sufficient to meet the requirements of this section, the

Rhode Island resource recovery corporation established pursuant to § 23-19 et. seq. shall serve as

the implementing organization, as defined in this chapter, until such time as another solicitation is

required to occur by this section.

     SECTION 2. Sections 23-90-2, 23-90-3, 23-90-5, 23-90-6, 23-90-8, 23-90-10 of the

General Laws in Chapter 23-90 entitled “Responsible Recycling, Reuse and Disposal of

Mattresses” are hereby amended to read as follows:

     23-90-2. Findings.

     The general assembly hereby finds and declares that:

     (1) It is in the best interest of this state for providers of mattresses sold in Rhode Island to

take responsibility for reducing the environmental and financial impacts of a mattress over its life

cycle, from design to management after the end of a mattress’s useful life;

     (2) It is in the best interest of this state to reduce illegal dumping of discarded mattresses

and determine a process for minimizing costs incurred by Rhode Island’s cities and towns for the

management of discarded mattresses; and

     (3) It is in the best interest of this state for producers to develop a statewide product

stewardship system that serves urban and rural areas in Rhode Island and provides cost-effective,

convenient opportunities for the collection, transportation, recovery and safe management of

discarded products.

     23-90-3. Definitions.

     As used in this chapter, the following words shall, unless the context clearly requires

otherwise, have the following meanings:

     (1) “Brand” means a name, symbol, word or mark that attributes a mattress to the producer

of such mattress.

     (2) “Covered entity” means any political subdivision of the state, any mattress retailer, any

permitted transfer station, any waste to energy facility, any healthcare facility, any educational

facility, any correctional facility, any military base, or any commercial or non profit lodging

establishment that possesses a discarded mattress that was discarded in this state. Covered entity

does not include any renovator, refurbisher or any person who transports a discarded mattress.

     (3) “Consumer” means an individual who is also a resident of this state.

     (4) “Corporation” means the Rhode Island Resource Recovery Corporation.

     (5) “Corporation Director” means the executive director of the Rhode Island Resource

Recovery Corporation.

     (6) “Council” or “mattress recycling council” means the state wide, non-profit organization

created by producers, or created by any trade association that represents producers, who account

for a majority of mattress production in the United States to design, submit, and implement the

mattress stewardship plan as described in this chapter.

     (76) “Discarded mattress” means any mattress that a consumer intends to discard, has

discarded, or that is abandoned.

     (87) “Energy recovery” means the process by which all or a portion of solid waste materials

are processed or combusted in order to utilize the heat content or other forms of energy derived

from such solid waste materials.

     (98) “Foundation” means any ticking-covered structure that is used to support a mattress

and that is composed of one or more of the following: A constructed frame, foam, or a box spring.

“Foundation” does not include any bed frame or base made of wood, metal, or other material that

rests upon the floor and that serves as a brace for a mattress.

     (9) “Implementing organization” means the organization or entity selected by the resource

recovery corporation to administer the mattress stewardship program.

     (10) “Mattress” means any resilient material, or combination of materials, that is enclosed

by ticking, used alone or in combination with other products, and that is intended for, or promoted

for, sleeping upon. “Mattress” includes any foundation, renovated foundation, or renovated

mattress.

     “Mattress” does not include any of the following:

     (i) An unattached mattress pad, an unattached mattress topper, including any item with

resilient filling, with or without ticking, that is intended to be used with, or on top of a mattress;

     (ii) A sleeping bag, pillow;

     (iii) A crib or bassinet mattress, car bed;

     (iv) Juvenile products, including: a carriage, basket, dressing table, stroller, playpen, infant

carrier, lounge pad, crib bumper, and the pads for those juvenile products;

     (v) A product that contains liquid- or gaseous-filled ticking, including any water bed or air

mattress that does not contain upholstery material between the ticking and the mattress core;

     (vi) Any upholstered furniture that does not contain a detachable mattress; or

     (vii) A fold-out sofa bed or futon.

     (11) “Mattress core” means the main support system that is present in a mattress, including,

but not limited to: springs, foam, air bladder, water bladder, or resilient filling.

     (12) “Mattress recycling council” or “council” means the organization created by producers

to design, submit, and implement the mattress stewardship program described in § 23-90-5.

     (1312) “Mattress stewardship fee” means the amount added to the purchase price of a

mattress sold in this state that is necessary to cover the cost of collecting, transporting, and

processing discarded mattresses by the council pursuant to the mattress stewardship program.

     (1413) “Mattress stewardship program” or “program” means the state wide, program

described in § 23-90-5 and implemented pursuant to the mattress stewardship plan as approved by

the corporation director.

     (1514) “Mattress topper” means any item that contains resilient filling, with or without

ticking, that is intended to be used with or on top of a mattress.

     (1615) “Performance goal” means a metric proposed by the council, to measure, on an

annual basis, the performance of the mattress stewardship program, taking into consideration

technical and economic feasibilities, in achieving continuous, meaningful improvement in

improving the rate of mattress recycling in the state and any other specified goal of the program.

     (1716) “Producer” means any person who manufactures or renovates a mattress that is sold,

offered for sale, or distributed in the state under the manufacturer’s own name or brand. “Producer”

includes:

     (i) The owner of a trademark or brand under which a mattress is sold, offered for sale, or

distributed in this state, whether or not such trademark or brand is registered in this state; and

     (ii) Any person who imports a mattress into the United States that is sold or offered for sale

in this state and that is manufactured or renovated by a person who does not have a presence in the

United States;

     (1817) “Recycling” means any process in which discarded mattresses, components, and

by-products may lose their original identity or form as they are transformed into new, usable, or

marketable materials. “Recycling” does not include as a primary process the use of incineration for

energy recovery or energy generation by means of combustion.

     (1918) “Renovate” or “renovation” means altering a mattress for the purpose of resale and

includes any one, or a combination of, the following: Replacing the ticking or filling, adding

additional filling, rebuilding a mattress, or replacing components with new or recycled materials.

“Renovate” or “renovation” does not include the:

     (i) Stripping of a mattress of its ticking or filling without adding new material;

     (ii) Sanitization or sterilization of a mattress without otherwise altering the mattress; or

     (iii) Altering of a mattress by a renovator when a person retains the altered mattress for

personal use, in accordance with regulations of the department of business regulation.

     (2019) “Renovator” means a person who renovates discarded mattresses for the purpose of

reselling such mattresses in a retail store.

     (2120) “Retailer” means any person who sells mattresses in this state or offers mattresses

in this state to a consumer through any means, including, but not limited to, remote offerings such

as sales outlets, catalogs, or the internet.

     (2221) “Sanitization” means the direct application of chemicals to a mattress to kill human

disease-causing pathogens.

     (2322) “ Sale” means the transfer of title of a mattress for consideration, including through

the use of a sales outlet, catalog, internet website, or similar electronic means.

     (2423) “Sterilization” means the mitigation of any deleterious substances or organisms

including human disease-causing pathogens, fungi, and insects from a mattress or filling material

using a process approved by the department of business regulation.

     (2524) “Ticking” means the outermost layer of fabric or material of a mattress. “Ticking”

does not include any layer of fabric or material quilted together with, or otherwise attached to, the

outermost layer of fabric or material of a mattress.

     (2625) “Upholstery material” means all material, loose or attached, between the ticking

and the core of a mattress.

     (2726) “Wholesaler” means any person who sells or distributes mattresses in the state, in a

nonretail setting, for the purpose of the resale of such mattresses.

     23-90-5. Mattress stewardship plan.

     (a) On or before July 1, 2015 December 31, 2023, and every five years thereafter, the

mattress stewardship council corporation shall submit a mattress stewardship plan for the

establishment of a mattress stewardship program to the corporation director for approval issue a

solicitation consistent with state procurement law to identify an implementing organization to

administer the mattress stewardship program.

     (b) The plan Responses to the solicitation submitted pursuant to subsection (a) of this

section shall, to the extent it is technologically feasible and economically practical:

     (1) Identify each producer’s participation in the program;

     (2) Describe the fee structure for the program and propose a uniform stewardship fee that

is sufficient to cover the costs of operating and administering the program;

     (3) Establish performance goals for the first two (2) years of the program;

     (4) Identify proposed recycling facilities to be used by the program, such facilities shall not

require a solid waste management facilities license;

     (5) Detail how the program will promote the recycling of discarded mattresses;

     (6) Include a description of the public education program;

     (7) Describe fee-disclosure language that retailers will be required to prominently display

that will inform consumers of the amount and purpose of the fee; and

     (8) Identify the methods and procedures to facilitate implementation of the mattress

stewardship program in coordination with the corporation director and municipalities.

     (c) Not later than ninety (90) days after submission of the plan pursuant to this section, the

corporation shall make a determination whether to:

     (1) Approve the plan as submitted; or

     (2) Deny the plan.

     (d) The corporation director shall approve the plan for the establishment of the mattress

stewardship program, provided such plan reasonably meets the requirements of this section. Prior

to making such determination, the corporation director shall post the plan for at least thirty (30)

days, in accordance with the “Administrative Procedures Act” as set forth in chapter 35 of title 42,

on the corporation’s website and solicit public comments on the plan to be posted on the website.

     (ec) In the event that the corporation does not select a respondent to administer the mattress

stewardship program, or the director of the corporation determines that the corporation can

administer a mattress stewardship program at lower cost to the consumer, then the corporation shall

administer a mattress stewardship program consistent with the requirements of this chapter. In such

cases, the corporation shall assume all duties and responsibilities of the implementing organization,

as defined in this chapter, and shall administer the mattress stewardship program until such time as

a new implementing organization is selected pursuant to the solicitation required by this section to

occur every five years. director denies the plan, the corporation director shall provide a notice of

determination to the council, within sixty (60) days, detailing the reasons for the disapproval. The

council shall revise and resubmit the plan to the corporation director not later than forty-five (45)

days after receipt of notice of the corporation director’s denial notice. Not later than forty-five (45)

days after receipt of the revised plan, the corporation director shall review and approve or deny the

revised plan. The council may resubmit a revised plan to the corporation director for approval on

not more than two (2) occasions. If the council fails to submit a plan that is acceptable to the

corporation director, because it does not meet the criteria pursuant to subdivisions (b)(1-8), the

corporation director shall have the ability to modify the submitted plan and approve it. Not later

than one hundred twenty (120) days after the approval of a plan pursuant to this section, the council

shall implement the mattress stewardship program.

     (fd) It is the responsibility of the council implementing organization to:

     (1) Notify the corporation director whenever there is a proposed substantial change to the

program. If the corporation director takes no action on a proposed substantial change within ninety

(90) days after notification of the proposed change, the proposed change shall be deemed approved.

For the purposes of this subdivision, “substantial change” shall include, but not be limited to:

     (i) A change in the processing facilities to be used for discarded mattresses collected

pursuant to the program; or

     (ii) A material change to the system for collecting mattresses.

     (2) Not later than October 1, 2017, the council shall submit to the corporation director for

review, updated performance goals that are based on the experience of the program during the first

two (2) years of the program.

     (ge) The council implementing organization shall notify the corporation director of any

other changes to the program on an ongoing basis, whenever they occur, without resubmission of

the plan to the corporation director for approval. Such changes shall include, but not be limited to,

a change in the composition, officers, or contact information of the council.

     (h) On or before July 1, 2015, and every two (2) years thereafter, the council shall propose

a uniform fee for all mattresses sold in this state. The council may propose a change to the uniform

fee more frequently than once every two (2) years if the council determines such change is needed

to avoid funding shortfalls or excesses. Any proposed fee shall be reviewed by an independent

auditor to ensure that such assessment does not exceed the costs of the mattress stewardship

program described in subsection (b) of this section and to maintain financial reserves sufficient to

operate the program over a multi-year period in a fiscally prudent and responsible manner. Not

later than sixty (60) days after the council proposes a mattress stewardship fee, the auditor shall

render an opinion to the corporation director as to whether the proposed mattress stewardship fee

is reasonable to achieve the goals set forth in this section. If the auditor concludes that the mattress

stewardship fee is reasonable, then the proposed fee shall go into effect not less than ninety (90)

days after the auditor notifies the corporation director that the fee is reasonable. If the auditor

concludes that the mattress stewardship fee is not reasonable, the auditor shall provide the council

with written notice explaining the auditor’s opinion. Specific documents or information provided

to the auditor by the council, along with any associated internal documents or information held by

the council, shall be made available to the corporation for its review upon request but shall not be

made public if the documents and information contain trade secrets or commercial or financial

information of a privileged or confidential nature, pursuant to chapter 2 of title 38 (“access to public

records”). Not later than fourteen (14) days after the council’s receipt of the auditor’s opinion, the

council may either propose a new mattress stewardship fee, or provide written comments on the

auditor’s opinion. If the auditor concludes that the fee is not reasonable, the corporation director

shall decide, based on the auditor’s opinion and any comments provided by the council, whether to

approve the proposed mattress stewardship fee. Such auditor shall be selected by the council. The

cost of any work performed by such auditor pursuant to the provisions of this subsection and

subsection (i) of this section shall be funded by the council.

     (if)(1) On and after the implementation of the mattress stewardship program, each retailer

shall add the amount of the fee established pursuant to subsection (b) of this section and described

in subsection (h) of this section to the purchase price of all mattresses sold in this state. The fee

shall be remitted by the retailer to the council implementing organization. The council

implementing organization may, subject to the corporation director’s approval, establish an

alternative, practicable means of collecting or remitting such fee.

     (2) On and after the implementation date of the mattress stewardship program, no producer,

distributor, or retailer shall sell or offer for sale a mattress to any person in the state if the producer

is not a member participant in of the mattress stewardship program administered by the council

implementing organization.

     (3) No retailer or distributor shall be found to be in violation of the provisions of this

section, if, on the date the mattress was ordered from the producer or its agent, the producer of said

mattress was listed on the corporation’s website in accordance with the provisions of this chapter.

     (jg) Not later than October 1, 2016, and annually thereafter, the council implementing

organization shall submit an annual report to the corporation director. The corporation director shall

post such annual report on the corporation’s website. Such report shall include, but not be limited

to:

     (1) The weight of mattresses collected pursuant to the program from:

     (i) Municipal and/or transfer stations;

     (ii) Retailers; and

     (iii) All other covered entities;

     (2) The weight of mattresses diverted for recycling;

     (3) Identification of the mattress recycling facilities to which mattresses were delivered for

recycling;

     (4) The weight of discarded mattresses recycled, as indicated by the weight of each of the

commodities sold to secondary markets;

     (5) The weight of mattresses, or parts thereof, sent for disposal at each of the following:

     (i) Rhode Island resource recovery corporation; and

     (ii) Any other facilities;

     (6) Samples of public education materials and methods used to support the program;

     (7) A description of efforts undertaken and evaluation of the methods used to disseminate

such materials;

     (8) Updated performance goals and an evaluation of the effectiveness of the methods and

processes used to achieve performance goals of the program; and

     (9) Recommendations for any changes to the program.

     (kh) Two (2) years after the implementation of the program and upon the request of the

corporation director, but not more frequently than once a year, the council implementing

organization shall cause an audit of the program to be conducted by the auditor described in

subsection (h) of this section an independent auditor selected by the implementing organization.

Such audit shall review the accuracy of the council’s implementing organization’s data concerning

the program and provide any other information requested by the corporation director. Such audit

shall be paid for by the council implementing organization. The council implementing organization

shall maintain all records relating to the program for not less than three (3) years.

     (li) No covered entity that participates in the program shall charge for receipt of mattresses

generated in the state. Covered entities may charge a fee for providing the service of collecting

mattresses and may restrict the acceptance of mattresses by number, source, or physical condition.

     (mj) Covered entities that, upon the date of this act’s passage, have an existing program for

recycling discarded mattresses may continue to operate such program without coordination of the

council, so long as the entities are able to demonstrate, in writing, to the corporation director that

the facilities to which discarded mattresses are delivered are engaged in the business of recycling

said mattresses and the corporation director approves the written affirmation that the facility

engages in mattress recycling of mattresses received by the covered entity. A copy of the written

affirmation and the corporation’s approval shall be provided to the council by the corporation

director in a timely manner.

     (k) The implementing organization may, subject to approval by the corporation, propose

the establishment and maintenance of a financial reserve sufficient to operate the program over a

multi-year period in a fiscally prudent and responsible manner. Such financial reserve shall not

exceed 50 percent of the projected program costs in any given year.

     (l) The corporation is authorized to cap administrative expenses to administer the mattress

stewardship program at a set percentage of annual program expenses as determined by the

corporation.

     23-90-6. Responsibilities of the Rhode Island resource recovery corporation.

     (a) The corporation shall review for approval responses to the solicitation for an

implementing organization to administer the mattress stewardship program. of the council

     (b) The corporation shall maintain on its website information on collection opportunities

for mattresses, including collection site locations. The information must be made available in a

printable format for retailers and consumers.

     (c) Not later than the implementation date of the mattress stewardship program, the

corporation shall list the names of participating producers covered by the program and the cost of

the approved mattress stewardship fee on its website.

     (d) The corporation shall approve the mattress stewardship fee to be applied by the council

implementing organization to mattresses pursuant to this chapter.

     (e) The corporation shall assume responsibility for administering the mattress stewardship

program in the event that none of the submissions to the solicitation for an implementing

organization are deemed sufficient, or if the director of the corporation determines that the

corporation can administer the mattress stewardship program at a lower cost to the consumer than

any of the respondents to the solicitation.

     (ef) Pursuant to § 23-90-11, the corporation shall report biennially to the general assembly

on the operation of the statewide system for collection, transportation and recycling of mattresses.

     23-90-8. Immunity.

     Each producer, retailer and the council implementing organization shall be immune from

liability for any claim of a violation of antitrust law, to the extent such producer or council

implementing organization is exercising authority pursuant to the provisions of this chapter,

including but not limited to:

     (1) The creation, implementation or management of a plan pursuant to § 23-90-5, and the

types or quantities of used mattresses recycled or otherwise managed pursuant to a plan;

     (2) The cost and structure of a plan; and

     (3) The establishment, administration, collection or disbursement of the mattress

stewardship fee associated with funding the implementation of the plan.

     23-90-10. Collaboration.

     In the event that another state implements a mattress recycling program, the council

implementing organization may collaborate with such state to conserve efforts and resources used

in carrying out the mattress stewardship program, provided such collaboration is consistent with

the requirements of this chapter.

     SECTION 3. Section 23-90-4 in Chapter 23-90 entitled “Responsible Recycling, Reuse

and Disposal of Mattresses” is hereby repealed.

     23-90-4. Mattress stewardship council established.

     (a) On or before July 1, 2015, each producer shall join the council and such council shall

submit a plan, for the corporation director’s approval, to establish a statewide mattress stewardship

program, as described in this section. Any retailer may be a member of such council. Such mattress

stewardship program shall, to the extent it is technologically feasible and economically practical:

     (1) Minimize public sector involvement in the management of discarded mattresses;

     (2) Provide for the convenient and accessible statewide collection of discarded mattresses

from any person in the state with a discarded mattress that was discarded in the state, including

from participating covered entities that accumulated and segregated a minimum of fifty (50)

discarded mattresses for collection at one time, or a minimum of thirty (30) discarded mattresses

for collection at one time in the case of participating municipal transfer stations;

     (3) Provide for council-financed recycling and disposal of discarded mattresses;

     (4) Provide suitable storage containers at permitted municipal transfer stations, municipal

government property or other solid waste management facilities for segregated, discarded

mattresses, or make other mutually agreeable storage and transportation agreements at no cost to

such municipality provided the municipal transfer station, municipal government property or other

solid waste management facilities make space available for such purpose and imposes no fee for

placement of such storage container on its premises;

     (5) Include a uniform mattress stewardship fee that is sufficient to cover the costs of

operating and administering the program; and

     (6) Establish a financial incentive that provides for the payment of a monetary sum,

established by the council, to promote the recovery of mattresses.

     (b) The council shall be a nonprofit organization with a fee structure that covers, but does

not exceed, the costs of developing the plan and operating and administering the program in

accordance with the requirements of this chapter, and maintaining a financial reserve sufficient to

operate the program over a multi-year period of time in a fiscally prudent and responsible manner.

The council shall maintain all records relating to the program for a period of not less than three (3)

years.

     (c) Pursuant to the program, recycling shall be preferred over any other disposal method to

the extent that recycling is technologically feasible and economically practical.

     (d) The council shall enter into an agreement with the corporation to reimburse for

reasonable costs directly related to administering the program but not to exceed the cost of two (2)

full time equivalent employees.

     SECTION 4. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled “Duties of

Utilities and Carriers” is hereby amended to read as follows: 

     39-2-1.2.  Utility base rate — Advertising, demand-side management, and

renewables.

     (a) In addition to costs prohibited in § 39-1-27.4(b), no public utility distributing or

providing heat, electricity, or water to or for the public shall include as part of its base rate any

expenses for advertising, either direct or indirect, that promotes the use of its product or service, or

is designed to promote the public image of the industry. No public utility may furnish support of

any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and

include the expense as part of its base rate. Nothing contained in this section shall be deemed as

prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or

educational in nature, that is designed to promote public safety conservation of the public utility's

product or service. The public utilities commission shall promulgate such rules and regulations as

are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect,

and to otherwise effectuate the provisions of this section.

     (b) Effective as of January 1, 2008, and for a period of twenty-two (202) years thereafter,

each electric distribution company shall include a charge per kilowatt-hour delivered to fund

demand-side management programs. The 0.3 mills per kilowatt-hour delivered to fund renewable

energy programs shall remain in effect until December 31, 202830. The electric distribution

company shall establish and, after July 1, 2007, maintain, two (2) separate accounts, one for

demand-side management programs (the "demand-side account"), which shall be funded by the

electric demand-side charge and administered and implemented by the distribution company,

subject to the regulatory reviewing authority of the commission, and one for renewable energy

programs, which shall be administered by the Rhode Island commerce corporation pursuant to §

42-64-13.2 and shall be held and disbursed by the distribution company as directed by the Rhode

Island commerce corporation for the purposes of developing, promoting, and supporting renewable

energy programs.

     During the time periods established in this subsection, the commission may, in its

discretion, after notice and public hearing, increase the sums for demand-side management and

renewable resources. In addition, the commission shall, after notice and public hearing, determine

the appropriate charge for these programs. The office of energy resources, and/or the administrator

of the renewable energy programs, may seek to secure for the state an equitable and reasonable

portion of renewable energy credits or certificates created by private projects funded through those

programs. As used in this section, "renewable energy resources" shall mean: (1) Power generation

technologies, as defined in § 39-26-5, "eligible renewable energy resources," including off-grid and

on-grid generating technologies located in Rhode Island, as a priority; (2) Research and

development activities in Rhode Island pertaining to eligible renewable energy resources and to

other renewable energy technologies for electrical generation; or (3) Projects and activities directly

related to implementing eligible renewable energy resources projects in Rhode Island.

Technologies for converting solar energy for space heating or generating domestic hot water may

also be funded through the renewable energy programs. Fuel cells may be considered an energy

efficiency technology to be included in demand-side management programs. Special rates for low-

income customers in effect as of August 7, 1996, shall be continued, and the costs of all of these

discounts shall be included in the distribution rates charged to all other customers. Nothing in this

section shall be construed as prohibiting an electric distribution company from offering any special

rates or programs for low-income customers which are not in effect as of August 7, 1996, subject

to the approval by the commission.

     (1) The renewable energy investment programs shall be administered pursuant to rules

established by the Rhode Island commerce corporation. Said rules shall provide transparent criteria

to rank qualified renewable energy projects, giving consideration to:

     (i) The feasibility of project completion;

     (ii) The anticipated amount of renewable energy the project will produce;

     (iii) The potential of the project to mitigate energy costs over the life of the project; and

     (iv) The estimated cost per kilowatt-hour (KWh) of the energy produced from the project.

     (c) [Deleted by P.L. 2012, ch. 241, art. 4, § 14.]

     (d) The chief executive officer of the commerce corporation is authorized and may enter

into a contract with a contractor for the cost-effective administration of the renewable energy

programs funded by this section. A competitive bid and contract award for administration of the

renewable energy programs may occur every three (3) years and shall include, as a condition, that

after July 1, 2008, the account for the renewable energy programs shall be maintained and

administered by the commerce corporation as provided for in subsection (b) of this section.

     (e) Effective January 1, 2007, and for a period of twenty-one three (213) years thereafter,

each gas distribution company shall include, with the approval of the commission, a charge per

deca therm delivered to fund demand-side management programs (the "gas demand-side charge"),

including, but not limited to, programs for cost-effective energy efficiency, energy conservation,

combined heat and power systems, and weatherization services for low-income households.

     (f) Each gas company shall establish a separate account for demand-side management

programs (the "gas demand-side account") that shall be funded by the gas demand-side charge and

administered and implemented by the distribution company, subject to the regulatory reviewing

authority of the commission. The commission may establish administrative mechanisms and

procedures that are similar to those for electric demand-side management programs administered

under the jurisdiction of the commission and that are designed to achieve cost-effectiveness and

high, life-time savings of efficiency measures supported by the program.

     (g) The commission may, if reasonable and feasible, except from this demand-side

management charge:

     (1) Gas used for distribution generation; and

     (2) Gas used for the manufacturing processes, where the customer has established a self-

directed program to invest in and achieve best-effective energy efficiency in accordance with a plan

approved by the commission and subject to periodic review and approval by the commission, which

plan shall require annual reporting of the amount invested and the return on investments in terms

of gas savings.

     (h) The commission may provide for the coordinated and/or integrated administration of

electric and gas demand-side management programs in order to enhance the effectiveness of the

programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the

recommendation of the office of energy resources, be through one or more third-party entities

designated by the commission pursuant to a competitive selection process.

     (i) Effective January 1, 2007, the commission shall allocate, from demand-side

management gas and electric funds authorized pursuant to this section, an amount not to exceed

three percent (3%) of such funds on an annual basis for the retention of expert consultants, and

reasonable administration costs of the energy efficiency and resources management council

associated with planning, management, and evaluation of energy-efficiency programs, renewable

energy programs, system reliability least-cost procurement, and with regulatory proceedings,

contested cases, and other actions pertaining to the purposes, powers, and duties of the council,

which allocation may by mutual agreement, be used in coordination with the office of energy

resources to support such activities.

     (j) Effective January 1, 2016, the commission shall annually allocate from the

administrative funding amount allocated in subsection (i) from the demand-side management

program as described in subsection (i) as follows: (1) for the energy efficiency resources

management council, no more than forty percent (40%) for the purposes identified in subsection (i)

and (2) sixty percent (60%) of three percent (3%) from the demand side management and electric

funds annually to the office of energy resources for activities associated with planning,

management, and evaluation of energy-efficiency programs, renewable energy programs, system

reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other

actions pertaining to the purposes, powers, and duties of the office of energy resources. The office

of energy resources shall have exclusive authority to direct the use of these funds.

     (k) On April 15, of each year, the office and the council shall submit to the governor, the

president of the senate, and the speaker of the house of representatives, separate financial and

performance reports regarding the demand-side management programs, including the specific level

of funds that were contributed by the residential, municipal, and commercial and industrial sectors

to the overall programs; the businesses, vendors, and institutions that received funding from

demand-side management gas and electric funds used for the purposes in this section; and the

businesses, vendors, and institutions that received the administrative funds for the purposes in

subsections (i) and (j). These reports shall be posted electronically on the websites of the office of

energy resources and the energy efficiency and resources management council.

     (l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each

electric distribution company, except for the Pascoag Utility District and Block Island Power

Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side charge

collections to the Rhode Island infrastructure bank.

     (m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each

gas distribution company shall remit two percent (2%) of the amount of the 2014 gas demand-side

charge collections to the Rhode Island infrastructure bank.

     (n) Effective January 1, 2022, the commission shall allocate, from demand-side

management gas and electric funds authorized pursuant to this section, five million dollars

($5,000,000) of such funds on an annual basis to the Rhode Island infrastructure bank. Gas and

electric demand-side funds transferred to the Rhode Island infrastructure bank pursuant to this

section shall be eligible to be used in any energy efficiency, renewable energy, clean transportation,

clean heating, energy storage, or demand-side management project financing program administered

by the Rhode Island infrastructure bank notwithstanding any other restrictions on the use of such

collections set forth in this chapter. The infrastructure bank shall report annually to the commission

within ninety (90) days of the end of each calendar year how collections transferred under this

section were utilized.

     (o) Effective January 1, 2024, the commission shall allocate from demand-side

management gas and electric funds authorized pursuant to this section, four million five hundred

thousand ($4,500,000) of such funds on an annual basis to the Rhode Island office of energy

resources, on behalf of the executive climate change coordinating council, for climate change-

related initiatives. The executive climate change coordinating council shall have exclusive

authority to direct the use of these funds. The office of energy resources may act on behalf of the

executive climate change coordinating council to disburse these funds.

     (i) The gas and electric demand-side funds allocated pursuant to 39-2-1.2(o) shall be used

to fund direct investments in programs designed to eliminate emissions of greenhouse gases in

Rhode Island, including any energy efficiency, renewable energy, clean transportation, clean

heating, energy storage, demand-side management, or other programs and investments that support

the 2021 Act on Climate, as well as supporting the work directly related to compliance with the

provisions of that Act, including but not limited to:

     (a) Developing an updated Climate Strategy by December 31, 2025, including GHG

modeling and support for a robust public involvement process;

     (b) Completing, publishing, and maintaining public metrics and an online public dashboard

tracking emissions reductions, sources of energy consumed by the state, and related climate

metrics;

     (c) Supporting multiple agencies to develop and promulgate rules and regulations and/or

implement programs necessary to meet GHG reduction mandates;

     (d) Supplementing critical state programs aimed at decarbonization and resilience,

including support for related work by municipalities and conservation commissions;

     (e) Supporting the work of the Climate Justice workgroup, including support for

community-centric communications and engagement actions, and compensation to community

participants; and,

     (f) Supporting continued work of the Science & Technical Advisory Board, created

pursuant to § 42-6.2-5, and the Advisory Board, created pursuant to § 42-6.2-4, including the

engagement of expert technical consulting support where necessary.

     (g) Funds may also be used for the purpose of providing the financial means for the council

to purchase materials and to employ on a contract or other basis expert consultant services, expert

witnesses, outreach and marketing campaign efforts to educate about the programs and policies

and/or other support services necessary to advance the requirements of the act on climate.

     (ii) The Rhode Island executive climate change council shall report annually to the

governor and general assembly within one hundred and twenty (120) days of the end of each

calendar year how the funds were used to achieve the statutory objectives of the 2021 act on climate.

     (iii) The office of energy resources is authorized and may enter into contracts with third-

party entities for the administration and/or implementation of climate change initiatives funded by

this section.

     (iv) There is hereby established a restricted receipt account in the general fund of the state

and housed in the budget of the department of administration entitled “executive climate change

coordinating council projects.” The express purpose of this account is to record receipts and

expenditures of the program herein described and established within this subsection.

     (p) Effective January 1, 2023, the electric and gas distribution company shall not be eligible

for performance based or other incentives related to the administration and implementation of

energy efficiency programs approved pursuant to this chapter.

     (q) The Rhode Island office of energy resources, in coordination with the energy efficiency

resource management council, and following consultation with the public utilities commission and

division of public utilities and carriers, shall issue a request for proposals for the cost effective

administration and implementation of statewide energy efficiency programs funded by this section

no later than June 30, 2024. The draft request for proposals shall be reviewed through at least one

technical session at the public utilities commission prior to issuance. Public utilities commission

approval shall not be required. The Rhode Island office of energy resources, in coordination with

the energy efficiency resource management council, shall evaluate proposals and determine

whether energy efficiency administration and implementation by the electric and gas distribution

company or a third-party is likely to achieve the most net benefits for electric and gas customers in

Rhode Island. After January 1, 2025, the office of energy resources may, periodically, and at its

discretion, issue additional requests for proposals for the administration and implementation of

statewide energy efficiency programs funded through this chapter of an electric distribution

company as defined in § 39-1-2(a)(12) or gas distribution company included as a public utility in

§ 39-1-2(a)(20) that has greater than one hundred thousand (100,000) customers.

     (i) Nothing in this chapter shall prohibit the electric and/or gas distribution company from

submitting a proposal to administer and implement the state energy efficiency programs.

     (ii) If the office of energy resources, in coordination with the energy efficiency resource

management council, determines that the use of a third-party administrator is likely to achieve the

most net benefits for electric and gas customers in Rhode Island, it shall file its recommendation

with the public utilities commission, which shall docket and rule on the matter pursuant to its

general statutory authorization. If the commission determines that the recommended third-party

administrator is in the interest of Rhode Island utility customers, it shall provide for the full cost

recovery for the third-party administrator consistent with the terms of the approved contract which

may include regulatory performance metrics.

     (iii) If the office does not recommend advancement of a third-party administrator, the

electric and gas distribution utility shall continue to administer statewide energy efficiency

programs.

     SECTION 5. This Act shall take effect upon passage.