2025 -- H 6206

========

LC002621

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

____________

A N   A C T

RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINERS RECYCLING ACT

     Introduced By: Representatives Spears, McEntee, Bennett, Carson, Boylan, McGaw,
Cortvriend, Donovan, Handy, and Kazarian

     Date Introduced: April 09, 2025

     Referred To: House Environment and Natural Resources

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

amended by adding thereto the following chapter:

CHAPTER 19.19

BEVERAGE CONTAINER RECYCLING ACT

     23-19.19-1. Definitions.

     As used in this chapter, the following words and terms shall have the following meanings

unless a different meaning is clearly indicated by the context:

     (1) "Applicable refund value" means the value established pursuant to the provisions of §

23-19.19-13.

     (2) "Beverage" means a drinkable liquid intended for human oral consumption. Beverage

does not include:

     (i) A drug regulated under the federal Food, Drug, and Cosmetic Act, 21 U.S.C. Ch. 9, §

301 et seq.;

     (ii) One hundred percent (100%) fluid milk;

     (iii) Infant formula; or

     (iv) A meal replacement liquid.

     (3) "Beverage container" means any prepackaged container designed to hold beverages,

including the label, cap, and any other material attached to the container at the time of distribution.

     (4) "Beverage container collection mechanism" means any manual or technological means

by which empty covered beverage containers are properly identified as part of processing a

consumer's refund.

     (5) "Brand" means a name, symbol, word, or mark that identifies a product and attributes

the product and its components, including packaging, to the brand owner.

     (6) "Brand owner" means a person that owns or holds an exclusive license to a brand or

that otherwise has rights to market a product under the brand, whether or not the brand's trademark

is registered.

     (7) "Canner" means individuals who collect and redeem covered beverage containers for

critical income.

     (8) "Centralized processing facilities" means a facility that sorts and then bales or

aggregates covered beverage containers and associated materials for the purpose of recycling.

     (9) "Consumer" means an individual who purchases a beverage in the State of Rhode Island

in a beverage container for consumption.

     (10)" Covered beverage container" means any beverage container subject to a recycling

refund as defined in the recycling refund program plan.

     (11) "De minimis" means a person that in the most recent fiscal year earned global gross

revenues, not including on-premises alcohol sales, for the prior fiscal year of:

     (i) Until January 1, 2030, less than two million dollars ($2,000,000); or

     (ii) Beginning January 1, 2030, less than two million dollars ($2,000,000), as adjusted for

inflation by the department.

     (12) "Department" means the department of environmental management.

     (13) "Drop-off facilities" means a specific area where individuals may bring household

recyclable materials to be sorted into material-specific receptacles and is located in the State of

Rhode Island.

     (14) "Environmental impact" means the impact of a covered material on human health and

the environment from extraction and processing of the raw materials composing the covered

material through manufacturing, distribution, use, recovery for reuse or recycling, and final

disposal.

     (15) "Environmental justice area" means a census block group with a low-income and/or

minority population greater than twice the statewide average.

     (16) "Executive director" means the executive director of the recycling refund producer

responsibility organization.

     (17) "Express redemption site" means a designated return point that allows consumers to

return covered beverage containers. These locations shall not require cash handling on-site; rather,

LC002621 - Page 2 of 27

upon return, if needed, beverage containers shall be transported to centralized processing facilities,

and refunds shall be credited to the consumer's virtual account. This may include bag-drop systems,

reverse vending machines, or other beverage container collection mechanisms to enhance

convenience and accessibility for consumers.

     (18) "Fraudulent activity" means any of the following:

     (i) Redeeming a beverage container purchased outside the State of Rhode Island;

     (ii) Altering a beverage container not eligible for a refund in the State of Rhode Island

recycling refund system to make it appear eligible for a refund;

     (iii) Altering a receipt to increase the payout beyond the amount from appropriately

redeeming covered beverage containers; and

     (iv) Tampering with beverage container collection mechanisms to enable redemption of a

beverage container or knowingly attempting to redeem a beverage container that:

     (A) Was not purchased in Rhode Island;

     (B) Is not in the Rhode Island recycling refund system;

     (C) Had no deposit paid on it in the State of Rhode Island; or

     (D) Has already been redeemed for a refund.

     (19) "Full-service redemption site" means a return point where individuals may return

covered beverage containers to receive immediate refunds for their returns.

     (20) "Government entity" means any:

     (i) City, town, or other local government, including any municipal corporation, quasi-

municipal corporation, or special purpose district, or any office, department, division, bureau,

board, commission, or agency thereof, or other local public agency;

     (ii) State office, department, division, bureau, board, commission, or other state agency;

     (iii) Federally recognized Indian tribe whose traditional lands and territories include parts

of Rhode Island; or

     (iv) Federal office, department, division, bureau, board, commission, or other federal

agency.

     (21) "Independent auditor" means an independent and actively licensed certified public

accountant who is:

     (i) Retained by a producer responsibility organization;

     (ii) Not otherwise employed by or affiliated with a producer responsibility organization;

and

     (iii) Qualified to conduct an audit under State of Rhode Island law.

     (22) "Labor organization" means any organization that exists and is constituted for the

LC002621 - Page 3 of 27

purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning

grievances, terms or conditions of employment, or of other mutual aid or protection.

     (23) "Lobbying" means the practice of promoting, opposing, or in any manner influencing

or attempting to influence the introduction, defeat, or enactment of legislation before any legislative

body; opposing or in any manner influencing the executive approval, veto, or amendment of

legislation; or the practice of promoting, opposing, or in any manner influencing or attempting to

influence the enactment, promulgation, modification, or deletion of regulations before any

regulatory body. The term does not include providing public testimony before a legislative body or

regulatory body or any committee thereof.

     (24) "Material recovery facility" means a facility in the State of Rhode Island that collects,

compacts, repackages, sorts, or processes for transport source separated material for the purpose of

recycling.

     (25) "Municipality" means the individual cities and towns of the State of Rhode Island.

     (26) "Packaging manufacturer" means any person, firm, association, partnership, or

corporation that produces packaging or a packaging component of covered beverage containers.

     (27) "Postconsumer recycled content" means the amount of postconsumer material used

by a producer in the production of a covered materials type, divided by the total amount of that

covered materials type used for products sold or distributed by the producer in that same calendar

year.

     (28) "Producer" means the brand owner responsible for the brand visible on a covered

beverage container and who is responsible for compliance with the requirements under this chapter

for a covered beverage container that is sold or offered for sale, either physically or via e-commerce,

in the State of Rhode Island. "Producer" does not include:

     (i) Government entities; or

     (ii) Registered 26 U.S.C. § 501(c)(3) charitable organizations and 26 U.S.C. § 501(c)(4)

social welfare organizations.

     (29) "Recycling" means the series of activities by which material is collected, transported,

sorted, and processed for use in industrial feedstocks in place of virgin materials to manufacture

new products with minimal loss of material quality and quantity. "Recycling" does not include:

     (i) Landfill disposal;

     (ii) Use as alternative daily cover or any other beneficial use at a landfill; or

     (iii) Energy recovery, energy generation, or fuel production by any means including, but

not limited to, combustion, incineration, pyrolysis, gasification, solvolysis, or waste-to-fuel.

     (30) "Recycling refund" means a covered beverage container redemption program that pays

LC002621 - Page 4 of 27

a per-unit refund value to persons for covered beverage containers and collects and processes

covered beverage containers as described in this chapter.

     (31) "Recycling refund advisory council" means the council established under the

provisions of § 23-19.19-4.

     (32) "Recycling refund processing facility" means a location that is designated by the

recycling refund producer responsibility organization to receive, sort, and prepare redeemed

beverage containers for recycling or reuse.

     (33) "Recycling refund producer responsibility organization" means a nonprofit

corporation that is tax exempt under 26 U.S.C. § 501(c)(3) of the federal Internal Revenue Code

created by a group of recycling refund covered beverage containers producers to implement

activities under the provisions of this chapter.

     (34) "Recycling refund program plan" means a program plan developed by the recycling

refund producer responsibility organization that is prepared and submitted to the department for

review and approval.

     (35) "Redemption rate" means the number of covered beverage containers redeemed for

the recycling refund divided by the number of covered beverage containers sold in the State of

Rhode Island in a calendar year. Covered beverage containers transferred by material recovery

facilities to additional materials processing or end markets are not included in the redemption rate.

     (36) "Redemption site" means a public or private place that provides via any beverage

container collection mechanism the ability to redeem a covered beverage container for which a

deposit was paid.

     (37) "Responsible market" means a materials market that:

     (i) First produces and sells, transfers, or uses recycled organic product or recycled content

feedstock that meets the quality standards necessary to be used in the creation of new or

reconstituted products in a manner that protects the environment and minimizes risks to public

health and worker health and safety;

     (ii) Complies with all applicable statutes, rules, ordinances, and other laws governing

environmental, health, safety, and financial responsibility from any government entity;

     (iii) Possesses all requisite licenses and permits required by a federal or state agency or

political subdivision;

     (iv) If the market operates in the State of Rhode Island, manages waste according to the

waste management goal and priority order of waste management practices stated in statute; and

     (v) Minimizes adverse impacts to environmental justice areas.

     (38) "Retail establishment" means any person, corporation, partnership, business, facility,

LC002621 - Page 5 of 27

vendor, organization, or individual that sells or provides merchandise, goods, or materials directly

to a consumer that engages in the sale of beverages that are covered beverage containers intended

for consumption off-site.

     (39) "Reusable" means capable of reuse.

     (40) "Reuse" means the redemption and return of a covered beverage container to the

marketplace and the continued use of the covered material by a producer or service provider when

the covered material is:

     (i) Intentionally designed and marketed to be used multiple times for its original intended

purpose without a change in form;

     (ii) Designed for durability and maintenance to extend its useful life and reduce demand

for new production of the covered material;

     (iii) Supported by adequate logistics and infrastructure at a retail location, by a service

provider, or on behalf of or by a producer, that provides convenient access for consumers; and

     (iv) Compliant with all applicable statutes, rules, ordinances, and other laws governing

health and safety from any government entity.

     (41) "Reuse rate" means the share of units of a reusable covered beverage container

introduced into the State of Rhode Island in a calendar year that are demonstrated and deemed

reusable in accordance with an approved plan.

     (42) "Service provider" means an entity that provides covered services for covered

materials. A political subdivision that provides or that contracts or otherwise arranges with another

party to provide covered services for covered materials within its jurisdiction may be a service

provider regardless of whether it provided, contracted for, or otherwise arranged for similar services

before the approval of the applicable producer responsibility plan.

     (43) "Third-party certification" means certification by an accredited independent

organization that a standard or process required by this chapter or a recycling refund program plan

approved under this chapter has been achieved.

     (44) "Unredeemed deposit" means a deposit paid by a consumer to a retailer upon purchase

of a covered beverage container for which no person claimed the deposit by returning the beverage

container to a redemption site.

     23-19.19-2. Registration of producer responsibility organization.

     (a) Appointment of recycling refund producer responsibility organization. By January 1,

2026, the department shall accept applications from recycling refund producer responsibility

organizations to represent producers in fulfilling the requirements of the provisions of this chapter.

By April 1, 2026, the department may approve, for a period not to exceed ten (10) years, a single

LC002621 - Page 6 of 27

recycling refund producer responsibility organization if the recycling refund producer

responsibility organization demonstrates that it:

     (1) Is an independent nonprofit organization that qualifies for tax exemption under 26

U.S.C. § 501(c)(3) of the federal Internal Revenue Code;

     (2) Has the ability to administer the requirements of a recycling refund program plan under

the provisions of this chapter;

     (3) Has a governing board consisting of producers that represent the diversity of beverage

containers in the market;

     (4) Has adequate financial responsibility and financial controls to ensure proper

management of funds and payment of the registration fee required under the provisions of this

chapter; and

     (5) Meets any other reasonable requirements set by the department.

     (b) Registration fee.

     (1) By November 1, 2026, the recycling refund producer responsibility organization shall

submit a one-time payment to the department, in lieu of a registration fee, in an amount determined

by the department, to cover the previously incurred costs and future estimated costs of the

department under this chapter from the effective date of this chapter through paying the annual

registration fee required in subsection (b)(2) of this section. By August 1, 2026, the department

shall provide written notice to appointed packaging producer responsibility organization in writing

of the amount of the registration fee.

     (2) On July 1, 2027, and on each July 1 thereafter, the recycling refund producer

responsibility organization shall submit to the department a registration fee, as determined by the

department. By May 1, 2027, and on each May 1 thereafter, the department shall provide written

notice to the registered recycling refund producer responsibility organization in writing of the

amount of the registration fee. The registration fee shall not exceed the department's estimate of the

costs required to:

     (i) Administer, implement, and enforce the provisions of this chapter, including staff costs;

     (ii) Rulemaking to implement the provisions of this chapter, if applicable; and

     (iii) Provide reimbursement for staffing for the advisory council.

     (c) The department shall annually reconcile the fees paid by a recycling refund producer

responsibility organization under subsection (b) of this section with the actual costs incurred by the

department by means of credits or refunds to or additional payments required of a producer

responsibility organization, as applicable.

     (d) Disposition of fees. All fees received under this section shall be deposited with the

LC002621 - Page 7 of 27

general treasurer and credited to the recycling refund program account under the provisions of §

23-19.19-22.

     (e) Approval revocation. The department may revoke the approval of the recycling refund

producer responsibility organization if the department determines that the recycling refund

producer responsibility organization:

     (1) Failed to meet the redemption rate targets four (4) years in a row; and

     (2) Has not made reasonable progress over this four (4) year period toward compliance.

     (f) If the department exercises its authority under subsections (e) of this section, then the

department shall set dates to restart the appointment process and the previously approved recycling

refund producer responsibility organization shall continue operating until the department appoints

a new recycling refund producer responsibility organization.

     23-19.19-3. Recycling refund producer responsibility organization duties.

     Recycling refund producer responsibility organization shall:

     (1) Register with the department and pay the department fees, as required under the

provisions of § 23-19.19-2;

     (2) Submit a recycling refund producer plan to the department, as required under the

provisions of this chapter;

     (3) Implement recycling refund producer plans approved by the department under the

provisions of this chapter;

     (4) Establish by September 1, 2026, an initial producer fee structure to fund the initial

implementation of the program, to be used until the recycling refund producer responsibility

organization has an approved program plan as required under the provisions of this chapter;

     (5) Collect fees annually from registered producers;

     (6) Submit the reports required under the provisions of this chapter;

     (7) Ensure that producers operating under a recycling refund program plan administered

by the recycling refund producer responsibility organization comply with the requirements of the

recycling refund program plan and with the provisions of this chapter;

     (8) Expel a producer from the recycling refund producer responsibility organization if

efforts to return the producer to compliance with the plan or with the requirements of this chapter

are unsuccessful;

     (9) Notify the department when a producer has been expelled;

     (10) Consider and respond in writing within ninety (90) days to comments received from

the advisory council, including justifications for not incorporating board recommendations;

     (11) Maintain a website with the information required under the provisions of § 23-19.19-

LC002621 - Page 8 of 27

12;

     (12) Notify the department within thirty (30) days of a change made to the contact

information for a person responsible for implementing the recycling refund producer responsibility

plan, to board membership, or to the executive director;

     (13) Contract directly with service providers and provide payments in a timely manner;

and

     (14) Comply with all other applicable requirements of the provisions of this chapter.

     23-19.19-4. Advisory council.

     (a) Establishment. The recycling refund advisory council is established to review all

activities conducted by recycling refund producer responsibility organizations under this chapter

and to advise the department and recycling refund producer responsibility organizations regarding

the implementation of the provisions of this chapter.

     (b) Duties. The recycling refund advisory council shall:

     (1) Convene its initial meeting by June 1, 2026;

     (2) Establish a date and a process by which it will accept public comments;

     (3) Review the recycling refund program plan and provide comments to the recycling

refund producer responsibility organization, prior to the draft being issued as an official draft for

public comment, to ensure the recycling refund program plan:

     (i) Aligns with best practices;

     (ii) Reflects the reality in the State of Rhode Island; and

     (iii) Considers the needs of the State of Rhode Island;

     (4) Review program reports and audits and raise issues for recycling refund producer

responsibility organization follow-up or department enforcement action;

     (5) Review annual reports and provide comments to the department; and

     (6) Ensure that the recycling refund producer responsibility organization and department

are considering a broad range of perspectives in developing recycling refund program plans and in

implementing programs.

     (c) Membership. By March 1, 2026, the department shall establish and appoint the initial

membership of the recycling refund advisory council. The membership of the recycling refund

advisory council shall consist of representatives of the following:

     (1) Two (2) members representing a non-federal or non-state government entity;

     (2) One member representing a retailer, with a preference for a retailer that hosts beverage

container collection mechanisms;

     (3) One member representing a packaging manufacturer that is not a producer;

LC002621 - Page 9 of 27

     (4) One member representing the Rhode Island resource recovery corporation or a

recycling processor;

     (5) One member representing an environmental nonprofit organization;

     (6) One member representing an environmental justice organization;

     (7) One member who is a canner or represents a canner organization;

     (8) One member representing a labor organization; and

     (9) Two (2) members representing other interested parties or additional members of

interests as determined by the department.

     (d) In making these appointments, the department:

     (1) Shall not appoint members who are State of Rhode Island legislators;

     (2) Shall not appoint members who are employees of a producer required to be members

of a producer responsibility organization in the State of Rhode Island under the provisions of this

chapter; and

     (3) Shall endeavor to appoint members from all regions of the State of Rhode Island.

     (e) Chairperson. A chair is elected by majority vote of present members at the first meeting

of each year at which quorum is reached.

     (f) Terms - Removal. Members serve for a term of four (4) years, except that the initial

term for a majority of the initial appointees shall be two (2) years so that membership terms are

staggered. Members may be reappointed but shall not serve more than eight (8) consecutive years.

A member may be removed by the department for good cause.

     (g) Quorum. A quorum is reached when a majority of advisory council member seats are

filled; and a majority of the non-vacant advisory council member seats is present.

     (h) Voting. Action by the advisory council requires a quorum and a majority of those

present and voting. All members of the advisory council are voting members of the board.

     (i) Meetings. Each advisory council shall meet at least two (2) times per year and may meet

more frequently upon ten (10) days' written notice at the request of the chair or a majority of its

members.

     (j) Department role. The department shall provide administrative and operating support to

each advisory council, and the department may contract with a third-party facilitator to assist in

administering the activities of each advisory council, including establishing a website or landing

page on the department website. The department shall assist the advisory council in developing

policies and procedures governing the disclosure of perceived conflict of interest.

     23-19.19-5. Producer responsibilities.

     (a) Duties. After July 1, 2026, a producer shall be a member of a recycling refund producer

LC002621 - Page 10 of 27

responsibility organization registered in the State of Rhode Island.

     (b) A producer shall:

     (1) Register with the recycling refund producer responsibility organization;

     (2) Implement the requirements of the recycling refund producer responsibility plan under

which the producer operates;

     (3) Pay producer fees under the provisions of § 23-19.19-11;

     (4) Provide necessary information for covered beverage containers to the recycling refund

producer responsibility organization at a frequency to be determined by the recycling refund

producer responsibility organization;

     (5) Register with the recycling refund producer responsibility organization the barcode and

universal product code ("UPC") of all covered beverage containers introduced into the State of

Rhode Island; and

     (6) Comply with all other applicable requirements of this chapter.

     23-19.19-6. Sales restrictions.

     Beverage container sales and distribution restrictions. After July 1, 2029, a person shall not

sell or distribute in or into the State of Rhode Island a covered beverage container of a producer

that is not participating in the recycling refund producer responsibility organization or that is not in

compliance with the requirements of this chapter or rules adopted under this chapter.

     23-19.19-7. Service providers.

     (a) Contracting requirements. A recycling refund producer responsibility organization shall

require in any contract with a service provider that the service provider:

     (1) Meets performance standards established in an approved producer responsibility plan

under the provisions of this chapter;

     (2) Ensures that covered materials are sent to responsible markets; and

     (3) Provides documentation to the recycling refund producer responsibility organization on

the amounts, covered materials types, and volumes of covered materials by covered service method.

     (b) Bidding processes and ownership ability:

     (1) For infrastructure investments included in an approved producer responsibility plan, a

recycling refund producer responsibility organization shall use the competitive bidding processes

and publicly post bid opportunities, except that preference shall be given to existing facilities,

providers of services, and holders of service accounts in the State of Rhode Island for collection

and recycling of covered beverage containers;

     (2) No recycling refund producer responsibility organization shall own or partially own

infrastructure that is used to fulfill obligations under the provisions of this chapter, except in the

LC002621 - Page 11 of 27

following circumstances:

     (i) A producer may hold an ownership stake in infrastructure used to fulfill obligations

under this chapter so long as the stake was held before enactment of this chapter and the ownership

stake is fully disclosed by the producer to the producer responsibility organization; or

     (ii) After a bidding process described in this section under which no service provider bids

on the contract, the recycling refund producer responsibility organization may make infrastructure

investments identified under an approved recycling refund program plan to implement the

requirements in this chapter.

     (c) Dispute resolution. A recycling refund producer responsibility organization shall

establish a dispute resolution process utilizing third-party mediators for disputes related to

payments.

     23-19.19-8. Department responsibilities.

     (a) Department responsibilities. The department shall:

     (1) Appoint the initial membership of the advisory council, as required under the provisions

of § 23-19.19-4;

     (2) Provide administrative and operating support to the advisory council;

     (3) Review and determine whether to approve recycling refund program plans and

amendments to recycling refund program plans according to the provisions of this chapter;

     (4) Post on the department's website:

     (i) The most recent registration materials submitted by the producer responsibility

organizations;

     (ii) Any packaging plan or amendment submitted by a recycling refund producer

responsibility organization that is in draft form during the public comment period;

     (iii) Comments of the public, advisory council, and recycling refund producer

responsibility organization on program plans and needs assessments, and, if any, the responses of

the department to those comments; and

     (iv) Links to adopted rules implementing this chapter;

     (5) Review the selection of independent auditors to perform an annual financial audit of

the recycling refund producer responsibility organization; and

     (6) Conduct enforcement actions as permitted under the provisions of this chapter.

     (b) The department may alter the performance targets in § 23-19.19-10 and reporting

requirements of the provisions of this chapter to accommodate a recycling refund producer

responsibility organization that is operating regionally with the state and one or more neighboring

states.

LC002621 - Page 12 of 27

     23-19.19-9. Recycling refund program plan.

     (a) Recycling refund program plan submission and implementation.

     (1) By September 1, 2027, and every five (5) years thereafter, a recycling refund producer

responsibility organization shall submit a recycling refund program plan to the department that

describes the proposed operation by the organization of the program to fulfill the requirements of

this chapter. Once approved, a recycling refund program plan remains in effect for five (5) years,

as amended, or until a subsequent recycling refund program plan is approved.

     (2) By July 1, 2028, or within six (6) months of plan approval, whichever is later,

implement the plan approved by the department; subsequent recycling refund program plans shall

be implemented within six (6) months of approval by the department.

     (b) Advisory council review of draft plan and amendments. A recycling refund producer

responsibility organization shall submit a draft recycling refund producer program plan or draft

amendment to the recycling refund advisory council prior to submitting the draft plan or draft

amendment to the department and shall, prior to submission of the draft plan or draft amendment

to the department, respond to recycling refund advisory council comments and recommendations

received within sixty (60) days of providing the draft program plan or draft amendment to the

recycling refund advisory council and indicate whether those comments or recommendations were

accepted or rejected.

     (c) The recycling refund program plan shall contain the following:

     (1) A list of the types of covered beverage containers that shall be included in the recycling

refund program, which at a minimum shall include all beverage containers that are:

     (i) Glass bottles, rigid plastic bottles, or metal cans; and

     (ii) Have a capacity between forty milliliters (40 ml) and one gallon;

     (2) Proposed reuse rate performance targets with deadlines;

     (3) How the recycling refund producer responsibility organization shall meet performance

targets for redemption rates as described in the provisions of this chapter and the proposed reuse

rate performance targets;

     (4) How the performance targets shall be measured;

     (5) How the recycling refund producer responsibility organization shall encourage

improvements in the design of beverage containers for recyclability;

     (6) The proposed convenience standard pursuant to the provisions of this chapter;

     (7) How the proposed network of redemption sites satisfies the convenience standards set

pursuant to § 23-19.19-14 and other provisions of this chapter and addresses the evaluation criteria

established in this chapter, and provides sufficient opportunity for consumers of limited economic

LC002621 - Page 13 of 27

means to get their applicable refund value pursuant to § 23-19.19-13 immediately upon redemption;

     (8) How deposits collected from consumers shall be remitted to the recycling refund

producer responsibility organization;

     (9) What incentives the recycling refund producer responsibility organization shall provide

to retail establishments so that they choose to host covered beverage container collection

mechanisms;

     (10) How the program shall conduct outreach and provide convenient redemption:

     (i) Throughout the State of Rhode Island;

     (ii) In rural, urban, and environmental justice areas; and

     (iii) To those that redeem relatively large amounts of covered beverage containers;

     (11) How beverage containers shall be marked or consumers otherwise made aware of the

beverage containers eligible for the applicable refund value;

     (12) A description of how the recycling refund producer responsibility organization shall

educate the public on the recycling refund program and the availability of redemption sites,

including culturally responsive materials and methods to evaluate the efficacy of these efforts;

     (13) A description of the producer fee structure established pursuant to the provisions of §

23-19.19-11 and how those fees shall be used to support the proposed network of redemption sites

and other costs of administrating the recycling refund producer responsibility organization and the

recycling refund program plan;

     (14) An explanation of how the recycling refund producer responsibility organization shall

coordinate with the Rhode Island resource recovery corporation on implementation; and

     (15) Any other reasonable information requested by the department.

     (d) Review and approval procedure:

     (1) The department shall review and approve, deny, or request additional information for

draft recycling refund program plans and draft plan amendments no later than one hundred twenty

(120) days after the date the department receives it from a recycling refund producer responsibility

organization or recycling refund producer responsibility organization. The department shall post a

draft plan or draft amendment on the department's website and allow public comment for no less

than forty-five (45) days before approving, denying, or requesting additional information on a draft

plan or draft amendment;

     (2) In reviewing the draft plan, the department shall consider, among other factors, the

following:

     (i) Feasibility;

     (ii) Advisory council feedback;

LC002621 - Page 14 of 27

     (iii) Cost;

     (iv) Goals and plans in the Rhode Island solid waste management plan;

     (v) Increasing reuse;

     (vi) Adequacy of consumer-facing communications, including so consumers know which

beverage containers are in the recycling refund system and their refund value; and

     (vi) Reducing unnecessary use of materials;

     (3) If the department denies or requests additional information for a draft plan or draft

amendment, the department shall provide the recycling refund producer organization with the

reasons, in writing, that the plan or plan amendment does not meet the plan requirements in the

provisions of this chapter. The recycling refund producer organization has sixty (60) days from the

date that the rejection or request for additional information is received to submit to the department

any revisions or additional information necessary for the approval of the draft plan or draft

amendment. The department shall review and approve or disapprove the draft plan or draft

amendment no later than sixty (60) days after the date the department receives the revisions or

additional information;

     (4) A recycling refund producer organization may resubmit a draft plan or draft amendment

to the department on not more than two (2) occasions. If after the second resubmission, the

department determines that the draft plan or draft amendment does not meet the plan requirements

of this chapter, the department shall modify the draft plan or draft amendment as necessary for it

to meet the requirements of this chapter and approve it.

     23-19.19-10. Performance targets.

     (a) Redemption rate performance targets. The recycling refund producer responsibility

organization shall achieve the following performance targets:

     (1) Starting with calendar year 2031, and each year thereafter, the annual redemption rate

aggregated for all covered beverage containers shall be greater than sixty-five percent (65%).

     (2) Starting with calendar year 2034, and each year thereafter, the annual redemption rate

aggregated for all covered beverage containers shall be greater than eighty-five percent (85%).

     (b) Reuse rate performance targets.

     (1) The recycling refund producer responsibility organization shall achieve the reuse rate

performance target in the approved recycling refund program plan.

     (2) The reuse rate performance targets in the program plan shall increase with each

subsequent program plan.

     23-19.19-11. Producer fees.

     (a) Recycling refund producer responsibility organization annual fee. Costs to pay the

LC002621 - Page 15 of 27

registration fee required by this chapter and to meet the performance targets in § 23-19.19-13 and

other provisions of this chapter and the convenience standards in § 23-19.19-14 and other

provisions of this chapter that exceed the amount retained through scrap value and unclaimed

deposits are to be paid by producers as a material-specific fee that is:

     (1) Based on the cost to manage the material minus its scrap value, among other factors;

     (2) Modulated based on factors to reduce environmental impact, which may include:

     (i) Use of domestically sourced, verified postconsumer recycled content;

     (ii) Compliance with industry-accepted design for recyclability standards;

     (iii) Use of labeling to encourage appropriate recycling behaviors; and

     (iv) Use of design factors that inhibit recyclability.

     (b) The recycling refund producer responsibility organization shall offer a flat fee structure

for de minimis beverage producers.

     (c) Overcollections. Revenue collected under this section that exceeds the amount needed

to pay the costs described in subsection (a) of this section, shall be used to improve or enhance

program outcomes.

     (d) Prohibited conduct. Fees collected under this section shall not be used for lobbying.

     23-19.19-12. Website requirements.

     (a) A recycling refund producer responsibility organization shall maintain a website that

uses best practices for accessibility.

     (b) The recycling refund producer responsibility organization website shall contain, at a

minimum:

     (1) Information regarding a process that members of the public may use to contact the

recycling refund producer responsibility organization with questions;

     (2) The draft and approved producer responsibility plans and any draft and approved

amendments;

     (3) Annual reports submitted to the department;

     (4) A link to related administrative rules implementing this chapter;

     (5) The names of producers that are not in compliance with this chapter;

     (6) A list, updated at least monthly, of all member producers operating under the recycling

refund producer responsibility plan;

     (7) The list of covered beverage containers that are redeemable for the applicable refund

value under the provisions of § 23-19.19-13 and other provisions of this chapter;

     (8) Education materials on how to redeem covered beverage containers and the importance

of recycling covered beverage containers; and

LC002621 - Page 16 of 27

     (9) A list and map of all redemption sites currently accepting covered beverage containers

for a refund, including the hours each redemption site accepts covered beverage containers.

     23-19.19-13. Applicable refund value.

     (a) Applicable refund value. Every covered beverage container sold or offered for sale in

the State of Rhode Island shall have a refund value of ten cents ($.10) beginning July 1, 2029.

     (b) If a redemption rate performance target was not met in each of the two (2) previous

calendar years, the department may adopt rules providing a higher refund value than the refund

value provided under subsection (a) of this section, so long as the modified refund value is not

based on the type of beverage container, but no more than:

     (1) Once during any ten (10)-year period in consultation with the recycling refund producer

responsibility organization; and

     (2) Once during any five (5)-year period if there is a request from the recycling refund

producer responsibility organization for a change in the refund amount.

     (c) For covered beverage containers sold at retail, the retail establishment shall collect the

refund value and remit it to the recycling refund producer responsibility organization.

     (d) The charge for the refund value of covered beverage containers shall be separately

stated on a receipt, invoice, or similar billing document provided to the consumer.

     (e) Nonredeemable materials.

     (1) Excluding the material recovery facility and drop-off facility payments in this section,

the recycling refund producer responsibility organization shall not be required to pay refunds on:

     (i) A beverage container visibly containing or contaminated by a substance other than

water, residue of the original contents, or ordinary dust;

     (ii) A beverage container that is broken or damaged to the extent that the brand appearing

on the container cannot be identified;

     (iii) A beverage container that the recycling refund producer responsibility organization

has reasonable grounds to believe was bought in another state; or

     (iv) A beverage container for which the recycling refund producer responsibility

organization has reasonable grounds to believe a refund has already been provided.

     23-19.19-14. Convenience standard for redemption of beverage containers.

     (a) Criteria for establishing a convenience standard. The recycling refund producer

responsibility organization shall propose a quantitative convenience standard for redemption of

containers in the recycling refund program plan that is based on the following:

     (1) Ensure all consumers who pay a deposit have reasonably convenient opportunities to

redeem;

LC002621 - Page 17 of 27

     (2) Ensure consumers who require refunds immediately have sufficient opportunity to

receive refunds immediately;

     (3) Provide appropriately convenient and equitable access in urban, suburban, and rural

areas; and

     (4) Accounts for total population, population density, sales of covered beverage containers

in regions of the State of Rhode Island, and proximity to centers of beverage sales business activity.

     (b) Department evaluation of convenience standard and redemption system. The

department shall evaluate the proposed convenience standard based on the following criteria:

     (1) Proximity to businesses that sell a high volume of covered beverages containers;

     (2) Additional vehicle miles traveled;

     (3) Car and public transportation access;

     (4) Population density;

     (5) Environmental justice areas;

     (6) Average family income; and

     (7) Needs of people collecting large amounts of covered beverage containers for primary

or important supplemental income.

     (c) At least once per year, the department may audit the redemption system to determine

whether the recycling refund producer responsibility organization is meeting the convenience

standard in an approved recycling refund program plan and the redemption system requirements in

the provisions of this chapter, and the department shall conduct such an audit at least every five (5)

years.

     (d) Failure to meet convenience standards. In the event that the recycling refund producer

responsibility organization does not meet the convenience standards in an approved program plan

for two (2) calendar years in a row, the department may initiate rulemaking to support the recycling

refund producer responsibility organization's program plan amendment to achieve the convenience

standards in the provisions of this chapter.

     23-19.19-15. Redemption system.

     (a) Network for collecting qualifying covered beverage containers. The recycling refund

producer responsibility organization shall, at its own cost, install, operate, and maintain a network

of covered beverage container collection mechanisms for consumers to redeem covered beverage

containers for the applicable refund value per the provisions of § 23-19.19-13 that satisfies:

     (1) The convenience standard in the provisions of § 23-19.19-14; and

     (2) The redemption rate performance targets in the provisions of § 23-19.19-10.

     (b) The network of covered beverage container collection mechanisms shall include a mix

LC002621 - Page 18 of 27

of ways for consumers to redeem covered beverage containers including express redemption sites

and full-service redemption sites at locations convenient to consumers such as nearby or in the

parking lots of retailers that sell covered beverage containers, nonprofit organization facilities, and

government sites.

     (c) At a minimum, the network for collecting covered beverage containers shall:

     (1) In each municipality with a population density less than one thousand (1,000) residents

per square mile, have:

     (i) At least one redemption site in the municipality; or

     (ii) At least one redemption site within one mile of a retail establishment greater than ten

thousand square feet (10,000 ft2) that is within three (3) miles of the municipality's border.

     (2) In each municipality with a population density more than one thousand (1,000)

residents per square mile, have at least two (2) redemption sites;

     (3) In each municipality with greater than twenty-five thousand (25,000) residents but

fewer than seventy-five thousand (75,000) residents, have at least one redemption site; and

     (4) In each municipality with greater than seventy-five thousand (75,000) residents, at least

one redemption site in each zip code tabulation area.

     (d) The recycling refund producer responsibility organization may establish and dissolve

partnerships with any organization or individual to enhance redemption network operations and

better serve consumers.

     (e) Redemption site requirements. All redemption sites in the recycling refund producer

responsibility organization's redemption network shall:

     (1) Be clean, safe, and well-lighted;

     (2) Be accessible to persons with disabilities, including those related to mobility, hearing,

and sight;

     (3) Be readily identifiable and clearly marked as being part of the recycling refund system;

     (4) Appear on the recycling refund producer responsibility organization's website as

required in § 23-19.19-12 and other provisions of this chapter;

     (5) Accept for redemption all covered beverage containers;

     (6) Handle reusable containers in a manner that allows for their reuse;

     (7) Accept covered beverage containers for redemption for at least eight (8) hours on all

weekdays and one weekend day, except on federal holidays;

     (8) Post the hours of operation at a place that is clearly visible from outside; and

     (9) Provide year-round access during open hours free of charge.

     (f) The department may approve a limited number of redemption sites to not comply with

LC002621 - Page 19 of 27

all the requirements of this section to reduce costs or expand the number of redemption sites.

     (g) Compensation and incentives for hosting redemption. The recycling refund producer

responsibility organization shall fairly compensate all locations hosting redemption sites for the

space occupied by the covered beverage container collection mechanisms.

     (h) Retailer optionality. A retail establishment has no obligation under this chapter to host

a covered beverage container collection mechanism. A retail establishment that chooses to host a

redemption site is eligible to have a self-serve kiosk, located at the retail establishment at no charge

by the recycling refund producer responsibility organization, to facilitate the printing of redemption

vouchers, and pay the value of redemption vouchers to consumers that may be used on the premises.

The recycling refund producer responsibility organization shall reimburse retailers for the value of

valid vouchers redeemed by customers.

     (i) Standard bags for bag drop. A retail establishment larger than twenty thousand square

feet (20,000 ft2) shall sell bags for the redemption program at the price established by the recycling

refund producer responsibility organization. If the standard bags for the bag-drop program are made

of plastic film, the recycling refund producer organization shall:

     (1) Ensure that the bags have a minimum of fifty percent (50%) postconsumer recycled

content;

     (2) Demonstrate, upon request of the department, that the waste film from the bags is being

recycled at responsible end markets; and

     (3) Include instructions on the bag how the bag should be utilized and recycled through a

drop-off program.

     (j) The recycling refund producer organization shall credit the cost of any required bag

purchase back to the customer when the bag is returned and processed through the deposit return

system.

     23-19.19-16. Use of unredeemed deposits.

     Any unredeemed deposits are to only be spent by the recycling refund producer

organization and only on any of the following purposes:

     (1) Education and outreach activities to encourage redemption activity;

     (2) Increasing the number of redemption sites; and

     (3) Other activities that are described in the recycling refund program plan that directly

contribute to achieving the performance requirements described in § 23-19.19-10 and other

provisions of this chapter.

     23-19.19-17. Refund value to drop-off facilities and material recovery facilities.

     Information required.

LC002621 - Page 20 of 27

     (1) Starting after the first full month that covered beverage containers are sold with the

applicable refund value and ending once the packaging program begins, the recycling refund

producer organization shall make a monthly payment directly to each material recovery facility and

drop-off facility based on data submitted by each material recovery facility drop-off facility under

the provisions of this chapter.

     (2) The recycling refund producer responsibility organization shall establish a quality

standard for each material.

     (3) On a monthly basis, the operator of a material recovery facility and drop-off facility

shall submit the following information to the recycling refund producer responsibility organization:

     (i) The number of tons of covered beverage containers the facility received for processing

in the previous month by material; and

     (ii) The number of tons of covered beverage containers the facility transferred to additional

materials processing or end markets in the previous month by material;

     (4) The recycling refund producer organization shall convert the material tons to unit

equivalent using a methodology that is published on its website and developed in consultation with

material recovery facilities.

     (5) The recycling refund producer organization shall pay each material recovery facility

and drop-off facility at least fifty percent (50%) of the refund value for each covered beverage

container that the material recovery facility transferred to additional materials processing or end

markets and that meets the quality standard provided for in subsection (2) of this section.

     (6) Material recovery facilities shall share the payments with their customers consistent

with their supply agreements so that communities and generators receive the appropriate amount

of the refund values paid to material recovery facilities and drop-off facilities.

     (7) The operators of material recovery facilities and drop-off facilities shall use an industry-

standard scale to measure the weight of all covered beverage container materials that enter the

facility.

     (8) The recycling refund producer responsibility organization may conduct quarterly audits

on the quality and quantity of the material recovery facilities' and drop-off facilities' material upon

request by the organization and at the organization's expense.

     (9) The recycling refund producer responsibility organization may choose to partner with

a material recovery facility or drop-off facility to provide space and install the necessary equipment

to co-locate a recycling refund processing facility in the same vicinity.

     (10) Monthly payments to the material recovery facilities and drop-off facilities shall end

six (6) months after any extended producer responsibility program for paper and packaging shifts

LC002621 - Page 21 of 27

the cost in whole or in part of collecting or processing residential recyclables to a producer

responsibility organization.

     23-19.19-18. Reporting.

     (a) Recycling refund producer responsibility organization annual report. On or before June

1, 2031, and on or before each June 1 thereafter, the recycling refund producer responsibility

organization shall submit a report to the department that contains, at a minimum, the following

information for the previous calendar year:

     (1) Number of covered beverage containers sold in the State of Rhode Island, by material

type and whether reusable;

     (2) Number of covered beverage containers redeemed through the recycling refund

redemption system, by material type;

     (3) Number of times reusable covered beverage containers were sold;

     (4) Number of times reusable covered beverage containers were returned through the

recycling refund program;

     (5) An analysis of whether the recycling refund producer responsibility organization is on

track to reach the redemption rate performance targets specified in the provisions of this chapter

and the reuse rate performance targets specified in the recycling refund program plan, and what the

recycling refund producer responsibility organization is doing to achieve the performance targets

by the relevant deadlines;

     (6) A list of redemption sites and processing facilities and their locations;

     (7) Verification of materials handled at responsible end markets;

     (8) Audited financial reports, including sources and uses of funds.

     (9) An evaluation of convenience of the program with the same criteria the department

shall use under the provisions of this chapter; and

     (10) A description of public awareness, education, and outreach activities undertaken by

the recycling refund producer responsibility organization, including analyses of their efficacy.

     (b) The recycling refund producer responsibility organization that submits information or

records to the department under subsection (a) of this section may request that a portion of the

information or records be made available only for the confidential use of the department, the

director, or the appropriate division of the department. The director of the department shall give

consideration to the request, and if the director determines that this action is not detrimental to the

public interest, the director shall grant the request for the information to remain confidential.

     (c) Audits. All data reported by a recycling refund producer responsibility organization

under this section shall, at the request of the department no more than once annually, be audited by

LC002621 - Page 22 of 27

an independent third party. A recycling refund producer responsibility organization shall be

responsible for all costs associated with the data audit. Auditable data shall only include data held

by a recycling refund producer responsibility organization. Auditing of any data inputs to the

recycling refund producer responsibility organization shall be the responsibility of the recycling

refund producer responsibility organization.

     (d) Action following unmet redemption rate performance target or convenience standard.

A recycling refund producer responsibility organization that fails to meet a redemption rate

performance target or convenience standard required under or approved in a producer responsibility

plan shall, within ninety (90) days of filing an annual report under this section, file with the

department an explanation of the factors contributing to the failure and propose an amendment to

the producer responsibility plan specifying changes including in its operations that the recycling

refund producer responsibility organization shall make that are designed to achieve the redemption

rate performance targets and convenience standard.

     (e) Department report. On or before October 15, 2032, and every two (2) years thereafter,

the department shall submit a report to the governor and to the chairs and ranking minority members

of the general assembly committees with jurisdiction over solid waste. The report shall contain:

     (1) A summary of the operations of this chapter during the previous years including the

redemption rate performance targets versus actual performance;

     (2) A link to reports filed under the provisions of this section;

     (3) Recommendations for policy, statutory, or regulatory changes to the program;

     (4) An analysis of the impacts of exempting certain materials from the definition of covered

materials and of exempting certain persons from the definition of producer;

     (5) A list of efforts undertaken by the department to enforce and secure compliance with

the provisions of this chapter; and

     (6) Any other information the department deems to be relevant.

     (f) Materials recovery facilities and drop-off facilities. On or before April 1, 2030, and on

or before April 1 thereafter, each material recovery facility and drop-off facility that receives

covered materials shall report annually to the recycling refund producer responsibility organization

and the department including the following information for the previous calendar year:

     (1) Amount of recycling refund covered beverage containers accepted and location of

origin (municipality, service provider, or other);

     (2) Amount of material sold to market, by commodity type;

     (3) Amount of residue or waste that was generated; and

     (4) Verification that covered beverage containers are sold to responsible markets.

LC002621 - Page 23 of 27

     23-19.19-19. Coordination plan.

     (a) If an extended producer responsibility program for paper and packaging is enacted in

the State of Rhode Island, the paper and packaging producer responsibility organization and the

recycling refund producer responsibility organization shall create a coordination plan to ensure that

programs are complementary and that all targets are met. As part of the coordination plan, the paper

and packaging producer responsibility organization and the recycling refund producer

responsibility organization shall identify actions to jointly optimize infrastructure for recycling

collection and reuse that benefit both programs.

     (b) The coordination plan between the producer responsibility organization for paper and

packaging and the recycling refund producer responsibility organization shall contain the

following:

     (1) Education and outreach activities to ensure consistent messaging to consumers;

     (2) A description of a reciprocal compensation mechanism such that the recycling refund

producer responsibility organization pays the paper and packaging producer responsibility

organization for covered beverage containers in material recovery facilities, and the packaging

producer responsibility organization pays a recycling refund producer organization for secondary

packaging managed through the recycling refund system;

     (3) Mechanisms to evaluate packages and formats managed by each program and consider

opportunities for adding and removing packages from one program to the other; and

     (4) An evaluation strategy to assess opportunities to coordinate identification of, and

efficient access to, collection infrastructure, processing infrastructure, reuse and infrastructure, and

responsible markets.

     23-19.19-20. Enforcement authority and penalties.

     (a) The department may administratively impose a civil penalty of up to one thousand

dollars ($1,000) per violation per day on any producer who violates this chapter and up to ten

thousand dollars ($10,000) per violation per day for the second and each subsequent violation.

     (b) The department may administratively impose a civil penalty of up to one thousand

dollars ($1,000) per violation per day on the recycling refund producer responsibility organization

for violations of this chapter and up to ten thousand dollars ($10,000) per violation per day for the

second and each subsequent violation in any calendar year.

     (c) The department may, in addition to assessing the penalties provided in subsections (a)

and (b) of this section, take any combination of the following actions:

     (1) Issue a corrective action order to a producer or a recycling refund producer

responsibility organization;

LC002621 - Page 24 of 27

     (2) Issue an order to a recycling refund producer responsibility organization to provide for

the continued implementation of the program in the absence of an approved plan;

     (3) Revoke the producer responsibility organization's plan approval and require resubmittal

of a producer responsibility organization's plan;

     (4) Require a producer responsibility organization to revise or resubmit a plan within a

specified time frame; or

     (5) Require additional reporting related to the area of noncompliance.

     (d) The department may assess a penalty on a person that engages in fraudulent activity.

The amount of the penalty that the department may assess under this section is twice the amount of

money the person received from the fraudulent activity in violation of this chapter or five hundred

dollars ($500), whichever is greater.

     (e) The department may assess a penalty on a person that continues to sell or distribute

covered beverage containers of a producer that has been assessed a penalty under subsection (a) of

this section, sixty (60) days after the person receives a written warning from the department. The

amount of the penalty that the department may assess hereunder is twice the value of the covered

beverage containers sold in violation of this chapter or five hundred dollars ($500), whichever is

greater. The department shall waive the penalty upon verification that the person has discontinued

distribution or sales of the covered beverage containers within thirty (30) days of the date the

penalty is assessed.

     (f) For a producer or producer responsibility organization out of compliance with the

requirements of this chapter, the department shall provide written notification and offer

information. For the purposes of this section, written notification serves as notice of the violation.

The department shall issue at least one notice of violation by certified mail prior to assessing a

penalty and the department may only impose a penalty on a producer that has not met the

requirements of this chapter sixty (60) days following the date the written notification of the

violation was received.

     (g) Pursuant to any person who incurs a penalty or receives an order may appeal the penalty

or order pursuant to the provisions of chapter 35 of title 42 ("administrative procedures").

     (h) Penalties levied under this section shall be deposited in the recycling refund program

account created in the provisions of § 23-19.19-22.

     23-19.19-21. Anticompetitive conduct.

     A recycling refund producer responsibility organization that arranges collection, recycling,

or other services under this chapter may engage in anticompetitive conduct to the extent necessary

to plan and implement collection, recycling, or other services to meet the obligations under the

LC002621 - Page 25 of 27

provisions of this chapter, and is immune from liability under State of Rhode Island laws relating

to antitrust, restraint of trade, and unfair trade practices.

     23-19.19-22. Recycling refund program account.

     (a) The recycling refund program account is created in the custody of the general treasurer.

All receipts received by the department under this chapter shall be deposited in the account.

     (b) Expenditures from the account may be used by the department only for implementing,

administering, and enforcing the requirements of this chapter related to the recycling refund

program. Only the director of the department may authorize expenditures from the account. The

account is subject to the allotment procedures under this chapter, but an appropriation is not

required for expenditures.

     23-19.19-23. Rulemaking.

     The department may adopt rules and regulations to implement the provisions of this

chapter.

     SECTION 2. This act shall take effect upon passage.

========

LC002621

========

LC002621 - Page 26 of 27

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- BEVERAGE CONTAINERS RECYCLING ACT

***

     This act would establish the Beverage Container Recycling Act. This act would establish

a comprehensive program providing for deposits on and recycling of beverage containers. This

program would be administered and overseen by the department of environmental management.

This act would also provide for the assessment of penalties on producers and recycling refund

producer responsibility organizations who fail to meet certain performance targets.

     This act would take effect upon passage.

========

LC002621

========

LC002621 - Page 27 of 27