103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2874

 

Introduced 2/16/2023, by Rep. Dagmara Avelar

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Packaging and Paper Products Stewardship Act. Provides that a producer responsibility organization shall be established to carry out the Act's provisions. Tasks the Environmental Protection Agency with providing administrative support under the Act. Establishes the Packaging and Paper Product Producer Responsibility Advisory Council to provide advice and recommendations in the drafting, amendment, or approval of program plans and to oversee and provide recommendations for the implementation of program plans. Requires producers, in consultation with the Advisory Committee, to adopt and publish a list of minimum types of readily recyclable materials based on available collection and processing infrastructure and recycling markets for covered materials. Tasks the Prairie Research Institute with conducting a study and preparing a statewide needs assessment to assess recycling and covered materials management needs in the State. Provides that, no later than January 1, 2026, producers shall submit a producer responsibility program plan for the Agency's approval. Requires producers to establish waste prevention and reuse programs and composting infrastructure and education programs. Permits the development and operation of an alternative collection program to collect and manage a type or types of covered materials sold, offered for sale, distributed, or served to consumers in the State that are not on the minimum recyclable materials list. Requires producers to submit annual reports to the Agency. Allows postconsumer recycled content requirements in specific products to be waived by the Agency if specified requirements are met. Contains provisions concerning a plastics recycling technologies study, outreach and education, penalties for violations, severability, and other provisions. Effective immediately.


LRB103 24787 CPF 51116 b

 

 

A BILL FOR

 

HB2874LRB103 24787 CPF 51116 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Packaging and Paper Products Stewardship Act.
 
6    Section 5. Findings and purpose. The General Assembly
7finds that:
8        (1) Recycling rates have been stagnant in Illinois for
9    over 15 years. Many Illinois counties continue to fall
10    short of the long-standing recycling goal of 25%
11    established in 1988 in the Solid Waste Planning and
12    Recycling Act, principally due to a lack of cost-effective
13    access to recycling services.
14        (2) In Illinois, more than 40% (over 7 million tons
15    per year) of municipal solid waste disposed of in
16    landfills is comprised of packaging and paper products. Of
17    this amount, nearly 80% consists of materials commonly
18    collected in curbside recycling programs in areas of the
19    State with mature recycling programs. The remainder
20    includes packaging products such as polystyrene, #3-#7
21    plastics, plastic bags, flexible pouches, and other
22    plastic films which are not currently acceptable in
23    curbside recycling and for which limited drop-off

 

 

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1    recycling options exist.
2        (3) Consumers have limited sustainable purchasing
3    choices. Illinois residents are generating packaging and
4    paper waste that is beyond their ability to reuse or
5    recycle. Consumers are also given confusing, inconsistent
6    messages through various means about which materials can
7    be recycled, and thus inadvertently create contamination
8    in recycling streams. There is widespread recycling
9    fatigue and public skepticism about the efficacy of
10    recycling in Illinois.
11        (4) Volatility in global recycling markets due to
12    import restrictions such as the China National Sword
13    policy, as well as impacts on supply chains and material
14    demand due to the COVID-19 pandemic, have further
15    challenged markets for recycled materials and destabilized
16    the recycling system in the State.
17        (5) Significant and increasing quantities of plastics
18    and packaging materials are seen in the environment,
19    including in Illinois rivers, lakes, and streams. This
20    pollution impacts the drinking water, wildlife, and
21    recreational value of vital natural resources.
22        (6) Consumer brands have little incentive to reduce
23    the amount of packaging they use or to choose more
24    sustainable materials to package products. Units of local
25    government and residents must, therefore, manage
26    increasingly complex materials even though they have no

 

 

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1    input in designing or bringing these materials to market.
2        (7) Units of local government are struggling to fund
3    collection and processing costs for an increasing volume
4    of packaging and paper products, and the cost of recycling
5    programs continues to rise with the complexity of the
6    material stream that material recycling facilities are
7    required to manage. Furthermore, many multifamily
8    residences and rural areas of the State do not have access
9    to adequate recycling opportunities.
10        (8) As materials continue to be landfilled and
11    littered, lower-income and rural communities across the
12    State disproportionately bear the environmental, health,
13    and economic consequences. Furthermore, by failing to
14    reuse or recycle packaging and paper products Illinois
15    loses economic value and green sector jobs.
16        (9) A producer responsibility program for packaging
17    and paper products in Illinois would require producers to
18    pay for and manage a statewide recycling system for their
19    packaging and paper products, including cardboard,
20    plastic, metal, paper, and other common recyclables. The
21    producer responsibility program would provide additional
22    environmental benefits by reducing demand on natural
23    resources, greenhouse gas emissions, and litter and by
24    increasing the recyclability of products.
 
25    Section 10. Definitions. In this Act:

 

 

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1    "Advisory Council" means the Packaging and Paper Product
2Producer Responsibility Advisory Council established under
3Section 15.
4    "Agency" means the Illinois Environmental Protection
5Agency.
6    "Alternative collection program" means a program for the
7management of covered materials that is operated by an
8individual producer, group of producers, or producer
9responsibility organization and that has been approved by the
10Agency in accordance with Section 75.
11    "Board" means the Illinois Pollution Control Board.
12    "Compost" has the same meaning as defined in Section 3.150
13of the Environmental Protection Act.
14    "Compostable materials" means a covered material that is
15designed to contact, contain, or carry a product, that can be
16collected for composting, and that is capable of undergoing
17aerobic biological decomposition in a controlled composting
18system as demonstrated by meeting ASTM D6400, ASTM D6868, or
19any successor standards.
20    "Composting rate" means the percentage of discarded
21covered materials that are managed through composting. A
22"composting rate" is calculated by dividing the total weight
23of all covered materials that are collected for composting by
24the total weight of covered materials sold, distributed, or
25served to consumers in the State over a program year.
26    "Covered entity" means a person or entity responsible for:

 

 

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1        (1) a single or multifamily residence, either
2    individually or jointly through a unit of local
3    government;
4        (2) a public or private school for grades kindergarten
5    through 12th grade;
6        (3) a State or local government facility; and
7        (4) a public space, including, but not limited to,
8    public spaces, such as parks, trails, transit stations,
9    and pedestrian areas for which the State or a unit of local
10    government is responsible.
11    "Covered material" means a packaging material or paper
12product, regardless of recyclability, compostability, or
13material type. "Covered material" does not include packaging
14materials or paper products that are subject to collection and
15recycling through a separate State stewardship law.
16    "Curbside recycling" means the collection of recyclable
17materials from covered entities at the site where the
18recyclable materials are generated. "Curbside recycling" may
19be provided by a covered entity directly or by a
20private-sector company operating through a contract with a
21covered entity or with any other person in the State.
22    "Director" means the Director of the Agency.
23    "Drop-off recycling" means the collection of recyclable
24material from a covered entity at one or more centralized
25sites.
26    "Hauler" means a person who collects recyclable materials

 

 

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1and transports them to a transfer station or MRF. A "hauler"
2may be a covered entity or a private-sector company operating
3through a contract with a covered entity or with any other
4person in the State.
5    "Material recovery facility" or "MRF" means a facility
6where recyclable materials collected via curbside recycling or
7drop-off recycling are consolidated and sorted for return to
8the economic mainstream in the form of raw materials.
9    "Mechanical recycling" means the use of physical processes
10to sort and prepare recovered materials for use in the
11production of new materials without changing the molecular
12structure of the recovered material.
13    "Nonprofit organization" means a tax-exempt charitable or
14social welfare organization operating under 26 U.S.C.
15501(c)(3) or 501(c)(4) of the federal Internal Revenue Code of
161986, as amended.
17    "Packaging" means a discrete material or category of
18material, regardless of recyclability. "Packaging" includes,
19but is not limited to, a material type, such as paper, plastic,
20glass, metal, or multi-material, that is:
21        (1) used to protect, contain, transport, or serve a
22    product;
23        (2) sold or supplied to consumers expressly for the
24    purpose of protecting, containing, transporting, or
25    serving products;
26        (3) attached to a product or its container for the

 

 

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1    purpose of marketing or communicating information about
2    the product;
3        (4) supplied at the point of sale to facilitate the
4    delivery of the product; or
5        (5) supplied to or purchased by consumers expressly
6    for the purpose of facilitating food or beverage
7    consumption and ordinarily disposed of after a single use
8    or short-term use, whether or not it could be reused.
9    "Packaging" does not include:
10        (1) a medical device or packaging that is included
11    with products regulated:
12            (A) as a drug, medical device, or dietary
13        supplement by the United States Food and Drug
14        Administration under the Federal Food, Drug, and
15        Cosmetic Act;
16            (B) as combination product as defined under 21 CFR
17        3.2(e); or
18            (C) under the federal Dietary Supplement Health
19        and Education Act of 1994;
20        (2) animal biologics, including, but not limited to,
21    vaccines, bacterins, antisera, diagnostic kits, other
22    products of biological origin, and other covered materials
23    regulated by the United States Department of Agriculture
24    under the federal Virus, Serum, Toxin Act;
25        (3) packaging regulated under the Federal Insecticide,
26    Fungicide, and Rodenticide Act or another applicable

 

 

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1    federal law, rule, or regulation; and
2        (4) beverage containers subject to a returnable
3    container deposit, if applicable.
4    "Paper product" means:
5        (1) paper that can or has been printed on to create
6    flyers, brochures, booklets, catalogs, greeting cards,
7    telephone directories, newspapers, magazines; and
8        (2) paper used for copying, writing, or any other
9    general use.
10    "Paper product" does not include:
11        (1) paper that, by virtue of its anticipated use,
12    could become unsafe or unsanitary to recycle; or
13        (2) any form of bound book, including, but not limited
14    to, bound books for literary, textual, or reference
15    purposes.
16    "Person" means any individual, partnership,
17co-partnership, firm, company, limited liability company,
18corporation, association, joint-stock company, trust, estate,
19political subdivision, State agency, any other legal entity,
20or their legal representative, agent, or assign.
21    "Postconsumer material" means covered materials that have
22served their intended end use as consumer items. "Postconsumer
23material" does not include a byproduct or waste material
24generated during or after the completion of a manufacturing or
25converting process.
26    "Postconsumer recycled content" means the portion of a

 

 

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1covered material made from postconsumer material that has been
2recycled.
3    "Producer" means the following:
4        (1) For products sold, offered for sale, distributed,
5    or served in packaging to consumers at a physical retail
6    location in this State:
7            (A) the product's manufacturer, if the product is
8        sold, offered for sale, distributed, or served in
9        packaging under the product manufacturer's own brand
10        or in packaging that lacks identification of a brand;
11            (B) except as provided under subparagraph (C), the
12        owner of the brand under which the product is sold,
13        offered for sale, distributed, or served to consumers,
14        if the product is sold, offered for sale, distributed,
15        or served to consumers under a brand other than the
16        product manufacturer's own brand;
17            (C) the manufacturer of the packaging and not its
18        retailer, if the product is manufactured on behalf of
19        a retailer and is sold, offered for sale, distributed,
20        or served under the retailer's brand or is licensed or
21        trademarked by the retailer; or
22            (D) if there is no person described in
23        subparagraphs (A), (B), or (C) within the United
24        States, the person who imports the product into the
25        United States.
26        (2) For products sold, distributed, or served in

 

 

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1    packaging to consumers in this State via remote sale,
2    distribution, or service:
3            (A) the producer of the product's packaging is the
4        producer determined under paragraph (1); and
5            (B) the producer of packaging used to ship the
6        product to a consumer, such as a box, envelope, or
7        other packaging used for shipping, is the person that
8        manufactured the packaging used for shipping.
9        (3) For all packaging that is a covered material,
10    other than packaging identified in paragraphs (1) and (2),
11    the manufacturer of the packaged product is the producer
12    of the packaging.
13        (4) For paper products that are publications, such as
14    magazines, newspapers, catalogs, or telephone directories,
15    the publisher is the producer of the paper product.
16        (5) For paper products not described in paragraph (4),
17    the producer is the same as the producer as determined
18    under paragraphs (1) and (2).
19    "Producer" does not include:
20        (1) government agencies or units of local government;
21        (2) nonprofit organizations;
22        (3) retailers; or
23        (4) persons that annually sell, offer for sale,
24    distribute, or serve to consumers in this State, or import
25    into the United States for sale in this State, either:
26            (A) less than one ton of covered materials in a

 

 

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1        program year in this State; or
2            (B) packaged products that generate less than
3        $3,000,000 in gross revenue nationally in a program
4        year.
5    "Producer responsibility organization" means a registered
6nonprofit organization designated by one or more producers to
7act as an agent on behalf of each producer in the group for
8purposes of developing and implementing a program plan in
9accordance with this Act.
10    "Producer responsibility program plan" or "program plan"
11means the program plan required under Section 45.
12    "Program year" means a calendar year. The first program
13year is calendar year 2026.
14    "Readily recyclable material" means a covered material
15included in the minimum recyclables list developed under
16Section 35.
17    "Reasonable rate" means the funding rate paid by
18producers, either individually or jointly with other
19producers, through a producer responsibility organization and
20using the actual rate established in a contract for services
21or the actual cost to provide service by a covered entity. If a
22contract for services is not in place or services are not
23provided directly by a covered entity on or before the
24effective date of this Act, the contract shall be
25competitively procured through a process seeking requests for
26proposals in accordance with the statutory authority granted

 

 

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1to units of local government under Illinois law.
2    "Recovery rate" means the percentage of covered materials
3recovered for recycling, reclamation, reuse, or composting.
4The "recovery rate" is calculated by dividing the total weight
5of all covered materials collected for recycling, reclamation,
6reuse, or composting by the total weight of covered materials
7sold, distributed, or served to consumers in this State over a
8program year.
9    "Recycling" means recycling, reclamation or reuse as
10defined in Section 3.380 of the Environmental Protection Act.
11"Recycling" does not include landfill disposal of covered
12materials or the residue resulting from the processing of
13covered materials at a MRF, use as alternative daily cover or
14any other beneficial use at a landfill, incineration, energy
15recovery, or energy generation by means of combustion, or
16final conversion of a covered material or a covered material's
17components and by-products to a fuel.
18    "Recycling rate" means the percentage of covered materials
19returned to the economic mainstream in the form of raw
20materials or products rather than being disposed of or
21discarded. The "recycling rate" is calculated by dividing the
22total weight of all covered materials that are collected for
23recycling by the total weight of covered materials sold,
24distributed, or served to consumers in the State over a
25program year, not including the residue that is landfilled
26after processing by a MRF.

 

 

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1    "Restaurant" means a business having sales of ready-to-eat
2food for immediate consumption comprising at least 51% of the
3total sales, excluding the sale of liquor.
4    "Retailer" means any person engaged in the business of
5making sales at retail that generate occupation or use tax
6revenue, including, but not limited to, sales made through an
7Internet transaction to deliver an item to a consumer in the
8State. "Retailer" includes a restaurant.
9    "Reusable" means:
10        (1) designed to be refilled or used repeatedly for its
11    original intended purpose and is returnable;
12        (2) safe for washing and sanitizing according to
13    applicable State food safety laws; and
14        (3) with the exception of ceramic products, capable of
15    being recycled at the end of use.
16    "Reuse" means the return of packaging to the economic
17stream for use in the same kind of application intended for the
18original packaging without effectuating a change in the
19original composition of the package, the identity of the
20product, or the components thereof.
21    "Reuse and refill system" means a program or set of
22mechanisms designed to facilitate multiple uses of packaging,
23including, but not limited to, deposits, incentives, curbside
24collection, collection kiosks, refill stations, dishwashing
25facilities, and redistribution networks.
26    "Reusable or refillable packaging" means packaging that is

 

 

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1specifically designed and manufactured to maintain its shape
2and structure and to be materially durable for repeated
3sanitizing, washing, and reuse.
4    "Rigid plastic" means packaging made of plastic that has a
5relatively inflexible finite shape or form and is capable of
6maintaining its shape while empty or while holding other
7products.
8    "Service provider" means a hauler, transfer station, or
9MRF.
10    "Single-use packaging or product" means a packaging or
11product that is supplied to or purchased by consumers
12expressly for the purpose of facilitating food or beverage
13consumption and that is ordinarily disposed of after a single
14use or short-term use, whether or not it could be reused.
15    "Small producer" means a producer who, during the previous
16program year, (i) earned more than $3,000,000 but less than
17$5,000,000 in annual revenues nationally or (ii) sold,
18distributed, or served more than one but less than 15 tons of
19covered materials to consumers in this State.
20    "Transfer station" has the same meaning as defined in
21Section 3.500 of the Environmental Protection Act.
22    "Waste prevention rate" means the ratio of the weight of
23packaging materials to the weight of products contained in the
24packaging across all product and packaging material types in a
25program year in comparison to the ratio of the weight of
26packaging materials for products put into the market in

 

 

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1Illinois in 2026.
 
2    Section 15. Producer responsibility organization
3governance.
4    (a) A producer responsibility organization shall be
5established to carry out relevant provisions under this Act.
6On or before January 1, 2024, the producer responsibility
7organization shall appoint a governing board to oversee and
8direct all activities of the producer responsibility
9organization with respect to this Act. Any changes or
10additions in membership shall be documented by a producer
11responsibility organization and, upon request, provided to the
12Agency.
13    (b) In appointing the governing board, a producer
14responsibility organization shall include representatives of
15producers who are members of a producer responsibility
16organization, including, but not limited to, brand
17manufacturers and packaging manufacturers, as applicable.
 
18    Section 20. Packaging and Paper Product Producer
19Responsibility Advisory Council.
20    (a) The Packaging and Paper Product Producer
21Responsibility Advisory Council is established in the Agency.
22On or before January 1, 2024, the Director shall appoint
23members to the Advisory Council to provide advice and
24recommendations to the Agency, producers, and a producer

 

 

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1responsibility organization in the drafting, amendment, or
2approval of program plans and to oversee and provide
3recommendations for the implementation of program plans,
4including, but not limited to, needs assessments and progress
5toward achieving performance requirements under this Act. The
6Advisory Council shall advise on and review annual reports and
7shall provide recommendations to the Agency, producers, and a
8producer responsibility organization regarding changes to the
9program to correct shortcomings and ensure performance
10requirements under this Act are met.
11    (b) In appointing members to the Advisory Council under
12subsection (a), the Director shall consider representatives
13from all geographic regions of the State, all sizes of
14communities in the State, all supply chain participants in the
15recycling system, and the racial and gender diversity of this
16State. Members of the Advisory Council shall include, but
17shall not be limited to, the following voting members:
18        (1) three individuals representing material recovery
19    facilities in the State, at least one of whom shall
20    represent a MRF that accepts recyclables from the Chicago
21    metropolitan area and at least one of whom shall represent
22    a MRF that accepts recyclables from central or southern
23    Illinois;
24        (2) one individual representing a drop-off recycling
25    program that collects recyclables from the public;
26        (3) three individuals representing haulers, one of

 

 

HB2874- 17 -LRB103 24787 CPF 51116 b

1    whom shall represent a statewide organization representing
2    haulers, one of whom shall represent a publicly traded
3    hauler, and one of whom shall represent a privately owned
4    hauler;
5        (4) seven individuals representing rural and urban
6    units of local government, one of whom shall represent a
7    county with a population of less than 50,000, one of whom
8    shall represent a county with a population of more than
9    50,000 and less than 1,000,000, one of whom shall
10    represent a county with a population of more than
11    1,000,000, one of whom shall represent a municipality, one
12    of whom shall represent a municipal joint action agency,
13    one of whom shall represent a township, and one of whom
14    shall represent a municipality with a population of
15    1,000,000 or more;
16        (5) one individual representing retailers or a
17    statewide association of retailers;
18        (6) two individuals representing environmental
19    organizations;
20        (7) one individual representing an environmental
21    justice advocacy organization; and
22        (8) four individuals representing trade associations,
23    one of whom shall represent a fiber trade association, one
24    of whom shall represent a plastic trade association, one
25    of whom shall represent a metal trade association, and one
26    of whom shall represent a glass trade association.

 

 

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1    The Advisory Council shall include the following nonvoting
2members, appointed by the Director, to facilitate the work of
3the Advisory Council:
4        (1) one individual representing a producer
5    responsibility organization;
6        (2) one individual representing manufacturers of
7    products containing postconsumer material, or one or more
8    associations of such manufacturers;
9        (3) one individual representing manufacturers of
10    virgin covered materials, or one or more associations of
11    suppliers of substrates of covered materials; and
12        (4) one individual representing the Agency.
13    (c) An individual may be appointed to only one position on
14the Council. Initial appointments shall be for a period of 4
15years.
16    (d) Advisory Council members shall be reimbursed by a
17producer responsibility organization for travel and lodging
18expenses incurred in the execution of the duties of the
19Advisory Council. Individuals representing environmental
20justice organizations shall be considered by the Advisory
21Council for receipt of an additional stipend in an amount
22determined by the Advisory Council and payable by producers,
23either individually or jointly with other producers through a
24producer responsibility organization.
25    (e) The duties of the voting members of the Advisory
26Council are as follows:

 

 

HB2874- 19 -LRB103 24787 CPF 51116 b

1        (1) Provide guidance on the scope of the statewide
2    needs assessment required under Section 25.
3        (2) Review and comment on the statewide needs
4    assessment prior to completion.
5        (3) Review and comment on all program plans during the
6    plan development process, prior to submission to the
7    Agency, pursuant to Section 45.
8        (4) Make recommendations to the Agency regarding
9    approval of submitted program plans.
10        (5) Make recommendations to producers, producer
11    responsibility organizations, and the Agency regarding the
12    development of or updates to the list of minimum types of
13    recyclable materials described in Section 35.
14        (6) Review and comment on all annual reports prior to
15    their submission to the Agency.
16        (7) Make recommendations to producers, producer
17    responsibility organizations, and the Agency regarding the
18    need for any program plan amendments or other
19    requirements, which may be based on annual program
20    reports.
21    (f) The Advisory Council shall:
22        (1) meet at the call of the Chair, except for the first
23    meeting, which shall be called by the Director;
24        (2) meet at least quarterly until initial program
25    plans have been approved and at least semi-annually
26    thereafter;

 

 

HB2874- 20 -LRB103 24787 CPF 51116 b

1        (3) elect a Chair from among Advisory Council members
2    by a simple majority vote;
3        (4) adopt bylaws and a charter for the operation of
4    its business for the purposes of this Act; the bylaws
5    shall include, but are not limited to, identification of
6    the term of appointment of members, staggering of
7    expiration of appointments, and procedures for appointment
8    of new members to fill a vacancy before a term is
9    completed;
10        (5) include an opportunity for a minority report; and
11        (6) be convened and provided administrative support by
12    the Agency and Agency staff.
13    The Agency may select and hire a third-party facilitator
14for the Advisory Council, which shall be included among the
15administrative costs of the program, to be paid by producers
16or producer responsibility organizations.
17    (g) The Advisory Council, upon a majority vote, shall have
18the authority to appeal a decision made by a producer, a
19producer responsibility organization, or the Agency to the
20Board if it believes the decision is not consistent with this
21Act. The Board shall have 60 days to rule on the appeal.
 
22    Section 25. Producer registration; needs assessment; scope
23of work.
24    (a) On or before January 1, 2024, any producer or a single
25producer responsibility organization authorized to operate and

 

 

HB2874- 21 -LRB103 24787 CPF 51116 b

1administer a program on the producer's behalf and who intends
2to submit a program plan pursuant to Section 45 of this Act
3shall register with the Agency.
4    (b) The registration submitted pursuant to subsection (a),
5on a form prescribed by the Agency, shall:
6        (1) identify each producer that intends to authorize a
7    producer responsibility organization to operate and
8    administer a program plan on the producer's behalf;
9        (2) provide the name, address, and contact information
10    of a person responsible for ensuring a producer, producer
11    responsibility organization, or a producer who has
12    authorized a producer responsibility organization to
13    operate a program on the producer's behalf comply with the
14    requirements of this Section;
15        (3) identify the members of the governing board of a
16    producer responsibility organization; and
17        (4) describe the scope of work for the comprehensive
18    statewide needs assessment study as required under Section
19    35, which producers, either individually or jointly with
20    other producers through a producer responsibility
21    organization, will fund, including, but not limited to, a
22    description of the data types and sources to be provided
23    by producers, a producer responsibility organization,
24    covered entities, and other persons as necessary to
25    facilitate the comprehensive statewide needs assessment
26    study's completion.

 

 

HB2874- 22 -LRB103 24787 CPF 51116 b

1    (c) No later than 60 days after submission of a
2registration form under this Section, the Agency shall provide
3a written notice to a producer or producer responsibility
4organization of the Agency's determination approving or
5disapproving the scope of work of the producer or producer
6responsibility organization funded statewide needs assessment.
7If the needs assessment's scope of work does not meet the
8requirements of Section 35 and is not approved by the Agency,
9the Agency shall describe the reasons for the disapproval in
10the notice of determination. A producer or producer
11responsibility organization shall revise and resubmit the
12proposed needs assessment's scope of work to the Agency not
13later than 30 days after receipt of the Agency's notice. Not
14later than 30 days after receipt of the revised proposal, the
15Agency shall review and approve or disapprove the revised
16needs assessment proposal and shall provide a notice of
17determination to the producer or producer responsibility
18organization. A producer or producer responsibility
19organization may resubmit a revised needs assessment proposal
20to the Agency for approval not more than once. If a producer or
21producer responsibility organization fails to submit a needs
22assessment proposal that meets the requirements of Section 35
23and is approved by the Agency, the Agency shall modify the
24needs assessment proposal to conform to the requirements and
25provide it to a producer or producer responsibility
26organization as the approved needs assessment scope of work to

 

 

HB2874- 23 -LRB103 24787 CPF 51116 b

1be funded. After the Agency approves the scope of the needs
2assessment, a producer or producer responsibility organization
3shall provide necessary data and funding for its completion.
4    (d) After the fifth program year, multiple producer
5responsibility organizations shall be authorized to register
6under this Act.
7    (e) A producer of covered materials who, after the
8approval of a program plan, seeks to sell, offer for sale, or
9distribute into the State a covered material not covered by an
10approved program plan shall notify the Director prior to
11selling, offering for sale, or distributing the covered
12material in the State.
13    The Director shall list a producer who supplies notice
14under this subsection as a new producer on the Agency's
15website. A producer that supplies notice under this subsection
16shall have 90 days either to join an existing producer
17responsibility organization or to submit a program plan for
18approval to the State.
 
19    Section 30. Plastics recycling technologies study.
20    (a) No later than July 1, 2025, the Prairie Research
21Institute shall conduct and publish a study of plastic
22recycling technologies. The study shall be designed to
23determine which existing and emerging technologies shall be
24eligible to meet the definition of "recycling" in Section 10.
25The study shall include:

 

 

HB2874- 24 -LRB103 24787 CPF 51116 b

1        (1) an assessment of the full life-cycle impacts of
2    various plastic-to-plastic technologies, including, but
3    not limited to, a comparison to the full life-cycle
4    impacts of mechanical recycling technologies;
5        (2) an assessment of the full life-cycle impacts of
6    the use of postconsumer recycled content compared to the
7    impacts of using virgin raw material content in the
8    manufacturing and recycling of plastic;
9        (3) a recommendation to the Board, which the Board
10    shall accept, modify, or reject within 60 days after
11    receipt, of which plastic-to-plastic recycling
12    technologies would meet the definition of "recycling" in
13    Section 10; and
14        (4) any other information required by the Advisory
15    Council.
16    (b) The Prairie Research Institute shall consult the
17Advisory Council and each producer and producer responsibility
18organization in completing the study.
19    (c) Producers, or a producer responsibility organization
20acting on producers' behalf, shall pay the full cost of
21completion of the study.
 
22    Section 35. Producer responsibilities; collection and
23convenience; list of minimum recyclable materials.
24    (a) Beginning July 1, 2026, no producer shall sell at
25retail, offer for sale at retail, distribute, or serve in this

 

 

HB2874- 25 -LRB103 24787 CPF 51116 b

1State a covered material unless the producer, or a producer
2responsibility organization acting on the producer's behalf,
3has a program plan approved by the Agency. A producer must
4satisfy participation obligations either individually or
5jointly with other producers through a producer responsibility
6organization.
7    (b) A producer responsibility organization shall be
8responsible for participating producers' compliance with the
9requirements of this Act, including, but not limited to, the
10preparation and implementation of a program plan, the
11preparation and submission of annual audits, and annual
12reports to the Agency.
13    (c) Producers, either individually or jointly with other
14producers through a producer responsibility organization,
15shall provide for the collection and processing of recyclable
16covered materials at no cost to all covered entities in the
17State. Collection and processing services shall be performed
18by covered entities, service providers, or other persons who
19are not a producer or producer responsibility organization.
20Beginning in 2026, producers, either individually or jointly
21with other producers through a producer responsibility
22organization, shall provide payment to covered entities or
23service providers for recycling expenses relating to covered
24materials, including, but not limited to, any administrative,
25sorting, collection, transportation, public education, or
26processing costs. A covered entity shall be eligible for

 

 

HB2874- 26 -LRB103 24787 CPF 51116 b

1payment from producers or a producer responsibility
2organization regardless of whether the covered entity provides
3the services directly or through a contract with a service
4provider.
5    (d) Producers, either individually or jointly with other
6producers through a producer responsibility organization,
7shall meet the following performance requirements:
8        (1) By December 31, 2030, the collective recycling
9    rate across all covered materials on the list published
10    under subsection (f) shall be no less than 45%.
11        (2) By December 31, 2035, the collective recycling
12    rate across all covered materials on the list published
13    under subsection (f) shall be no less than 50%.
14    (e) With respect to rigid plastics, each producer shall
15achieve a postconsumer recycled content requirement of 15% by
162028, 25% by 2031, and 50% by 2034 in the rigid plastics it
17produces, subject to any waiver issued under Section 100.
18    (f) No later than October 1, 2025, producers or a producer
19responsibility organization, in consultation with the Advisory
20Committee, shall adopt and publish a list of minimum types of
21readily recyclable materials based on available collection and
22processing infrastructure and recycling markets for covered
23materials. The producers or producer responsibility
24organization shall update and adopt the list on an annual
25basis, in consultation with the Advisory Council, in response
26to collection and processing improvements and changes in

 

 

HB2874- 27 -LRB103 24787 CPF 51116 b

1recycling end markets or as requested by the Advisory Council.
2If there are multiple lists, the producer responsibility
3organization shall compile the lists and publish the compiled
4list to the public. A list may vary by geographic region
5depending on regional markets and regional collection and
6processing infrastructure.
7    In developing the list of minimum recyclable materials,
8consideration shall be given to at least the following
9materials: gable-top cartons, paper cups, paper food
10packaging, mailers and envelopes, Kraft paper, corrugated
11cardboard, chipboard, coated groundwood, groundwood paper,
12coated paper board, paperboard boxes, pulpwood trays and
13take-out containers, polyethylene flexible bags, polyethylene
14wraps, polyethylene films, rigid plastics, glass bottles and
15jars, aluminum or steel aerosol cans, aluminum or steel cans,
16aluminum foil wrap, aluminum foil containers, other aluminum
17containers, and steel spiral wound containers. For any
18material that is not included in the list of minimum
19recyclable materials for a program year, producers, either
20individually or jointly with other producers through a
21producer responsibility organization, shall identify the
22method by which the material will be collected and managed and
23implement or provide payment to another entity for a program
24for collection of those materials by the end of the third
25program year.
26    All covered entities or recycling service providers shall

 

 

HB2874- 28 -LRB103 24787 CPF 51116 b

1provide for the collection and recycling of all identified
2materials contained on the list of minimum recyclables, based
3on geographic regions, in order to be eligible for payment by
4producers or a producer responsibility organization. However,
5a covered entity or service provider shall not be penalized
6for recovering and recycling materials that are generated by
7the covered entity or in the geographic region that are not
8included on the list of minimum types of recyclable covered
9materials as long as the covered entity or service provider
10can demonstrate that the materials have a market as determined
11by the Advisory Council in consultation with a producer or
12producer responsibility organization. Payment for recycling
13services by producers, either individually or jointly with
14other producers through a producer responsibility
15organization, shall cover recycling of all covered materials
16so long as the program includes at least the minimum
17recyclable list.
18    (g) Producers or a producer responsibility organization
19shall meet jointly with the Advisory Council at least annually
20to solicit input and guidance on the program plan, annual
21reports, and progress toward performance targets.
22    (h) No later than July 1, 2029, for covered entities that
23are not provided recycling services directly by the covered
24entity or through a contract with a service provider,
25producers, either individually or jointly with other producers
26through a producer responsibility organization, shall provide

 

 

HB2874- 29 -LRB103 24787 CPF 51116 b

1access to curbside recycling services for all covered entities
2within municipalities with a population of 1,500 or more based
3on the most recent United States Census. Curbside recycling
4services provided under this subsection shall be offered no
5less frequently than every 2 weeks. In all municipalities with
6a population less than 1,500, a producer or producer
7responsibility organization shall provide covered entities
8with at least one drop-off location for recyclable covered
9materials that is located within 15 miles of the municipal
10boundary.
11    (i) Curbside recycling and drop-off recycling programs
12that a covered entity has in operation on or before the
13effective date of this Act, whether provided directly or
14through a contract with a service provider, may continue, with
15no changes in collection frequency, unless approved by the
16covered entity, at the sole discretion of the covered entity,
17during any or all program years. Producers, either
18individually or jointly with other producers through a
19producer responsibility organization, shall make payment to
20the covered entity or the service provider for the services.
21    This Section does not prevent a covered entity that does
22not have a curbside recycling or drop-off recycling program in
23operation on or before the effective date of this Act from
24using its authority to franchise recycling services after the
25effective date of this Act and to be eligible for payment for
26recycling services by producers, either individually or

 

 

HB2874- 30 -LRB103 24787 CPF 51116 b

1jointly with other producers through a producer responsibility
2organization, in accordance with this Act.
3    (j) Costs to expand or upgrade recycling services are
4eligible for payment from producers or a producer
5responsibility organization.
6    (k) If a covered entity does not have recycling services
7provided directly or through a contract with a service
8provider during any program year, producers, either
9individually or jointly with other producers through a
10producer responsibility organization, shall secure one or more
11contracts for services with at least one service provider to
12meet the access requirements under this Act and shall make
13payment to the service provider for the services.
14    (l) Payments by producers or a producer responsibility
15organization shall be made within 30 days after a request for
16payment from the covered entity or service provider, which
17shall be submitted by the covered entity or service provider
18no more frequently than monthly.
19    (m) Recipients of payments under this Section shall
20maintain documentation of applicable costs associated with any
21payment. The documentation shall be made available to a
22producer or producer responsibility organization that provided
23payment upon request.
 
24    Section 40. Statewide needs assessment.
25    (a) On or before July 1, 2025, the Prairie Research

 

 

HB2874- 31 -LRB103 24787 CPF 51116 b

1Institute shall conduct a statewide needs assessment to assess
2recycling and covered materials management needs in the State
3and shall submit the results to the Agency for the Agency's
4review and approval. The needs assessment shall be funded by
5all producers either individually or jointly through a
6producer responsibility organization. The needs assessment
7shall identify current conditions and an evaluation of the
8capacity, costs, gaps, and needs associated with recycling and
9the diversion of packaging and paper products. The needs
10assessment shall address, at a minimum, the following factors:
11        (1) the quantity, by weight and type, of covered
12    materials sold at retail, distributed, or served to
13    consumers in the State by producers by material type and
14    format, with data provided by producers either
15    individually or jointly through a producer responsibility
16    organization;
17        (2) current operational and capital funding
18    limitations impacting reuse, recycling, and composting
19    access and availability for covered materials throughout
20    the State;
21        (3) existing federal and State statutory provisions
22    and public and private funding sources for the reduction,
23    reuse, recycling, and composting of covered materials;
24        (4) current collection systems and costs for covered
25    materials in the State for reuse, recycling, composting,
26    and disposal;

 

 

HB2874- 32 -LRB103 24787 CPF 51116 b

1        (5) the processing capacity and infrastructure for
2    reusable, recyclable, and compostable covered materials in
3    the State and regionally and the necessary capital
4    investments to existing and future reuse, recycling, and
5    composting infrastructure for covered materials;
6        (6) collection and processing system needs to meet any
7    access requirements under this Act on a county-by-county
8    basis for all counties in the State and the estimated
9    costs to meet the access requirements;
10        (7) the market conditions and opportunities for
11    reusable, recyclable, and compostable materials in the
12    State and regionally;
13        (8) multilingual public education needs for the
14    reduction, reuse, recycling, and composting of covered
15    materials, including, but not limited to, a scientific
16    survey of current awareness among residents of this State
17    of proper end-of-life management for covered materials and
18    the needs associated with the reduction of contamination
19    rates at MRFs in the State;
20        (9) current system-wide costs for the collection,
21    reuse, recycling, and composting of covered materials and
22    any estimated additional costs to meet all targets
23    established under this Act;
24        (10) current reuse, recycling, and composting rates
25    for covered materials in the State by material type; and
26        (11) an assessment of environmental justice and

 

 

HB2874- 33 -LRB103 24787 CPF 51116 b

1    recycling equity in the State, including, but not limited
2    to:
3            (A) an evaluation of current access to and the
4        performance of curbside and drop-off recycling
5        programs in units of local government designated as
6        environmental justice areas;
7            (B) a comparison of the location of MRFs and
8        transfer stations in units of local government that
9        have been designated as environmental justice areas
10        with units of local government that are not so
11        designated, and recommendations for proposed site
12        location standards for locating new MRFs that may be
13        required to implement this Act;
14            (C) an evaluation of worker conditions, wages, and
15        benefits at MRFs;
16            (D) the availability of opportunities in the
17        recycling system for women and minority individuals;
18            (E) the availability of opportunities in the
19        recycling system for small businesses in the State;
20        and
21            (F) recommendations for improving equity and
22        equitable outcomes for underserved populations in the
23        State's recycling system, including, but not limited
24        to, recommendations for new responsibilities of
25        producers either individually or jointly through a
26        producer responsibility organization and

 

 

HB2874- 34 -LRB103 24787 CPF 51116 b

1        recommendations for funding the new responsibilities.
2    (b) On or before May 15, 2025, the Prairie Research
3Institute shall provide the completed needs assessment to the
4Advisory Council, producers, and any producer responsibility
5organization registered with the Agency. The Advisory Council,
6producers, and producer responsibility organization shall
7provide written comments to the Prairie Research Institute
8within 30 days after receipt of the needs assessment. The
9Prairie Research Institute shall include an assessment of
10comments received in the completed needs assessment submitted
11to the Agency and shall provide a summary and an analysis of
12any issues raised by the Advisory Council, producers, or
13producer responsibility organization and significant changes
14suggested by any such comments, a statement of the reasons why
15any significant changes were not incorporated into the results
16of the study, and a description of any changes made to the
17results of the needs assessment as a result of such comments.
18    (c) No later than 90 days after the date the Agency
19receives the results of the study, the Agency shall notify the
20Prairie Research Institute of any deficiencies in the study.
21No later than 60 days after receiving this notice from the
22Agency, the Prairie Research Institute shall provide
23additional information, modification, or corrections in
24response to the Agency's notification, if applicable.
25    (d) Any proposed activities or recommendations from the
26study shall be evaluated by the Agency for progress and shall

 

 

HB2874- 35 -LRB103 24787 CPF 51116 b

1be taken into consideration when approving or disapproving a
2program plan.
 
3    Section 45. Producer responsibility program plan.
4    (a) No later than January 1, 2026, producers, either
5individually or jointly with other producers through a
6producer responsibility organization, shall submit a program
7plan to the Agency. The program plan shall cover a period of 5
8years and shall be reviewed by the Advisory Council prior to
9submission to the Agency. A producer or producer
10responsibility organization must thereafter submit a new or
11updated program plan no less than every 5 years. The Agency
12shall have the discretion to require a producer or producer
13responsibility organization to review or revise a plan at any
14time prior to the 5-year period for good cause, including, but
15not limited to, by recommendation of the Advisory Council. The
16Agency shall publish the approved program plan on its website.
17A program plan shall include, but shall not be limited to, at a
18minimum:
19        (1) the name and contact information of the producer
20    or producers covered under the plan, and of any producer
21    responsibility organization acting on their behalf;
22        (2) a list of the covered materials for which a
23    producer or producer responsibility organization is
24    responsible and which of the materials is included in the
25    minimum recyclable materials list submitted under Section

 

 

HB2874- 36 -LRB103 24787 CPF 51116 b

1    35;
2        (3) a funding mechanism that allocates the costs to
3    the producers to meet the requirements of this Act,
4    including, but not limited to, adjustments to the fee
5    schedule for participating producers based on the factors
6    established under subsection (a) of Section 40;
7        (4) a description of how a producer or producer
8    responsibility organization plans to meet the access
9    requirements set forth in this Act, including, but not
10    limited to, a description on a county-by-county basis of
11    the curbside recycling and drop-off recycling programs for
12    covered entities that are proposed to be used, including,
13    but not limited to, those that currently exist, any
14    additional sites that will be developed and operated, and
15    a timetable for phasing in the new curbside recycling and
16    drop-off recycling programs to meet the requirements of
17    this Act; this shall also include a designation of the
18    recycling programs that are eligible for payment by a
19    producer or producer responsibility organization and those
20    that are the responsibility of a producer or a producer
21    responsibility organization to implement and directly fund
22    under this Act;
23        (5) a description of the process for covered entities
24    to receive payment for recycling costs at a reasonable
25    rate;
26        (6) a description of how a producer or producer

 

 

HB2874- 37 -LRB103 24787 CPF 51116 b

1    responsibility organization will procure curbside
2    recycling or drop-off recycling services for covered
3    entities who do not provide services directly or through a
4    contract with a service provider;
5        (7) a description of how a producer or producer
6    responsibility organization will prioritize and work with
7    existing public and private service providers, including,
8    but not limited to, haulers, MRFs, transfer stations, and
9    covered entities to provide for collection and processing
10    of recyclable covered materials throughout the State from
11    covered entities;
12        (8) proposed reuse and recycling rates and a
13    description of how a producer or producer responsibility
14    organization will meet or exceed these targets; the
15    minimum recycling rates shall be varied for each covered
16    material type and format and shall not be set lower than
17    the minimum recycling rates established under this Act in
18    aggregate for all covered materials; this shall include:
19            (A) targets and mechanisms to achieve reductions
20        in emissions affecting land, air, and water and source
21        reduction of single-use packaging or products; and
22            (B) provisions and targets for transitioning from
23        single-use packaging or products to reusable or
24        refillable alternatives and recovery for reuse; and
25        (9) proposed minimum postconsumer recycled material
26    content for each covered material produced and a

 

 

HB2874- 38 -LRB103 24787 CPF 51116 b

1    description of how producers will meet or exceed these
2    targets; the minimum rates shall be varied for each
3    covered material type and format and shall not be set
4    lower than the minimum rates established under this Act
5    for rigid plastics;
6        (10) proposed waste prevention rates for covered
7    materials, based on an assessment of the amount of covered
8    materials, in tons, put into the Illinois marketplace in
9    program year 2026;
10        (11) for a producer responsibility organization, a
11    description of how the producer responsibility
12    organization will provide technical assistance to
13    participating producers to assist with the reduction of
14    covered materials through product design, systems for
15    reusable packaging, and program innovations, including,
16    but not limited to, a description of how participating
17    producers will minimize environmental and health impacts
18    of covered materials;
19        (12) a description of a public education program
20    conducted under Section 80;
21        (13) a description of the process for end-of-life
22    management of all covered materials, including, but not
23    limited to, the recycling and disposal of residuals
24    collected for recycling in compliance with environmental
25    laws, rules, and regulations;
26        (14) for a producer responsibility organization, a

 

 

HB2874- 39 -LRB103 24787 CPF 51116 b

1    description of how the producer responsibility
2    organization will facilitate opportunities to purchase
3    recycled materials from MRFs on behalf of producer members
4    interested in obtaining recycled feedstock in order to
5    achieve postconsumer recycled content objectives;
6        (15) for a producer responsibility organization, a
7    description of how the producer responsibility
8    organization will invest in existing and future reuse and
9    recycling infrastructure and market development in the
10    State, including, but not limited to, (i) installing or
11    upgrading equipment to improve the sorting of covered
12    materials or mitigating the impacts of covered materials
13    to other commodities at existing sorting and processing
14    facilities, (ii) capital expenditures for new technology,
15    equipment, and facilities in alignment with the results of
16    the statewide needs assessment, and (iii) how such
17    investments in future recycling infrastructure will
18    address concerns about environmental justice;
19        (16) descriptions of waste prevention and reuse and
20    composting infrastructure and education programs under
21    Section 60, including, but not limited to, the process by
22    which entities in the State may apply for grants or loans
23    from the programs;
24        (17) a process to address concerns and questions from
25    covered entities and residents of the State;
26        (18) a description of how the producer or producer

 

 

HB2874- 40 -LRB103 24787 CPF 51116 b

1    responsibility organization intends to address all other
2    needs and recommendations identified in the statewide
3    needs assessment; and
4        (19) a detailed description of how the producer or
5    producer responsibility organization consulted with the
6    Advisory Council in the development of the plan prior to
7    its submission to the Agency and to what extent a producer
8    or producer responsibility organization specifically
9    incorporated the Advisory Council's input into the plan.
10    (b) A producer or producer responsibility organization
11shall provide the completed program plan to the Advisory
12Council on or before October 15, 2025 for the Advisory
13Council's review and comment. The Advisory Council shall
14provide written comments to the producer or producer
15responsibility organization within 60 days of receipt. A
16producer or producer responsibility organization shall include
17in the completed program plan:
18        (1) an assessment of comments received;
19        (2) a summary and an analysis of the issues raised by
20    the Advisory Council;
21        (3) any significant changes suggested by any comments
22    received by the producer or producer responsibility
23    organization;
24        (4) a statement of the reasons why any significant
25    changes were not incorporated into the plan; and
26        (5) a description of any changes made to the plan as a

 

 

HB2874- 41 -LRB103 24787 CPF 51116 b

1    result of the comments described under paragraph (3).
2    (c) Beginning in the fifth program year, if multiple
3producer responsibility organizations register in accordance
4with the requirements of this Act, the producer responsibility
5organizations shall coordinate and submit to the Agency one
6program plan. Producer responsibility organizations may form a
7third-party entity to implement the requirements of this Act
8for all producers and producer responsibility organizations.
 
9    Section 50. Funding mechanism; payments by producer
10responsibility organizations.
11    (a) A producer responsibility organization implementing a
12program plan on behalf of producers must develop a system to
13collect dues from participating producers to cover the costs
14of implementing the program plan. At a minimum, dues shall be
15variable based on:
16        (1) costs to provide collection for recycling that
17    meets the requirements of this Act;
18        (2) costs to process a producer's covered materials
19    for acceptance by secondary material markets for use in
20    manufacturing processes;
21        (3) whether the covered material or product is readily
22    recyclable;
23        (4) whether the covered material or product is
24    specifically designed to be reusable and has a high reuse
25    rate; and

 

 

HB2874- 42 -LRB103 24787 CPF 51116 b

1        (5) the commodity value of a covered material or
2    product.
3    (b) The dues shall be adjusted to incentivize the
4following outcomes in the following order of importance:
5        (1) improving reusability, recyclability, and
6    compostability;
7        (2) reducing environmental impacts across the life
8    cycle of a product;
9        (3) incorporating sustainably and renewably sourced
10    material;
11        (4) eliminating toxic substances;
12        (5) incorporating postconsumer recycled content;
13        (6) optimizing packaging to use the minimum quantity
14    of material necessary to effectively deliver a product
15    without damage or spoilage; and
16        (7) preventing litter.
17    (c) Dues required under this Section shall be increased
18for covered materials that contaminate composting or recycling
19systems in the State, are a common source of litter, or may be
20managed only through disposal.
21    (d) No dues are required for reusable containers or
22materials if (i) they are designed to be reused for their
23original purpose and a producer provides a program for the
24consumer to reuse the covered material through which the
25covered material is collected and reused by a producer or
26similar producers and (ii) those programs meet or exceed any

 

 

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1recycling or reuse targets set forth in this Act and in the
2program plan.
3    (e) Small producers shall be provided an optional tiered
4flat fee structure based on annual tons of covered materials
5sold, distributed, or served to consumers in the State.
6    (f) In order to facilitate the dues collection system
7under this Section, individual retailers shall be responsible
8for providing necessary data upon request to producers, either
9individually or jointly with other producers through a
10producer responsibility organization, detailing the types,
11amounts, and manufacturers of packaging for products
12distributed and sold to consumers in the State that are
13manufactured on behalf of a retailer and sold under the
14retailer's brand or licensed or trademarked by a retailer.
15    (g) Producers, either individually or jointly with other
16producers through a producer responsibility organization,
17shall be responsible for disbursing funding to participating
18covered entities and recycling service providers for purposes
19of this Act, including, but not limited to, the collection,
20transport, processing, and marketing of covered materials,
21whether or not those services are provided directly by a
22covered entity or through a contracted service provider.
23    (h) For covered materials collected, transported,
24processed, or marketed by a covered entity directly or through
25a contract with a service provider, the covered entity may
26choose to:

 

 

HB2874- 44 -LRB103 24787 CPF 51116 b

1        (1) continue providing the service without payment;
2        (2) continue providing the service with payment at a
3    reasonable rate; or
4        (3) establish a recycling service by accepting a
5    contract for services procured by a producer or producer
6    responsibility organization.
7    (i) If a covered entity does not choose to provide
8recycling service in a program year, producers, either
9individually or jointly with other producers through a
10producer responsibility organization, shall make a good faith
11effort to offer to operate and administer a program on the
12covered entity's behalf. If the covered entity does not accept
13the offer, a producer or producer responsibility organization
14shall not be responsible for providing recycling service to
15the covered entity for that program year. A covered entity
16shall have the option to provide or receive recycling service
17in any program year under the provisions of this Act. A service
18provider who is contracted by a producer or producer
19responsibility organization must secure any operating
20approvals that are required by the unit of local government.
 
21    Section 55. Disposal costs. A program plan developed
22pursuant to this Act shall not include costs for covered
23materials collected and managed for disposal, but shall
24include materials collected and disposed of from a MRF
25processing covered materials for recycling.
 

 

 

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1    Section 60. Waste prevention and reuse program; composting
2infrastructure and education program.
3    (a) Each producer, individually or collectively through a
4producer responsibility organization, shall establish a waste
5prevention and reuse program to reduce the environmental
6impacts of covered materials through means other than
7recovery, including, but not limited to, waste prevention and
8reuse. A producer or producer responsibility organization
9shall enter into agreements with public or private entities to
10establish the program, which shall include, but shall not be
11limited to, offering grants or loans in order to reduce the
12environmental impacts of covered materials.
13    To fund activities under the waste prevention and reuse
14program, each producer, individually or collectively through a
15producer responsibility organization, shall establish and
16maintain a waste prevention and reuse fund. Amounts deposited
17into the fund by a producer or producer responsibility
18organization shall be at least 2.5% of the producer's or
19producer responsibility organization's total expenditures
20under the program plan or $10,000,000, whichever is less.
21Deposits to the fund beginning in the sixth year of program
22implementation and every year thereafter will be no less than
23was deposited in the fifth year. Upper limits on expenditures
24do not apply to renewed or updated program plans for which a
25program has already been in place for 5 or more years.

 

 

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1    (b) Each producer, individually or collectively through a
2producer responsibility organization, shall establish and
3maintain a composting infrastructure and education program to
4assist in improving the recovery of compostable packaging and
5the education of persons participating in collection programs
6that accept compostable packaging. A producer or producer
7responsibility organization shall enter into agreements with
8public or private entities to establish the composting
9infrastructure and education program, which shall include, but
10is not limited to, offering grants or loans in order to reduce
11the environmental impacts of covered materials.
12    To fund activities under the composting infrastructure and
13education program, each producer, individually or collectively
14through a producer responsibility organization, shall
15establish and maintain a composting infrastructure and
16education fund. Amounts deposited into the composting
17infrastructure and education fund by a producer or producer
18responsibility organization shall be at least 2.5% of total
19expenditure under the program plans or $10,000,000, whichever
20is less. Deposits to the composting infrastructure and
21education fund beginning in the sixth program year and every
22program year thereafter shall be no less than was deposited in
23the fifth program year. Upper limits on expenditures do not
24apply to renewed or updated program plans for which a program
25has already been in place for 5 or more years.
26    (c) In offering grants or loans for programs under this

 

 

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1Section, a producer or producer responsibility organization
2must consider criteria that include, but are not limited to,
3the following:
4        (1) the environmental benefits of the program;
5        (2) the human health benefits of the program;
6        (3) the social and economic benefits of the program;
7        (4) the cost-effectiveness of the program;
8        (5) the needs of economically distressed or
9    underserved communities;
10        (6) the results of the statewide needs assessment; and
11        (7) the inclusion of responsible end markets for any
12    collected compostable material.
 
13    Section 65. Funding stipulations; Agency expenses.
14    (a) Any funds collected under this Act shall not be used to
15carry out lobbying activities on behalf of a producer or
16producer responsibility organization.
17    (b) No retailer may charge a point-of-sale fee or other
18fee to consumers to facilitate a producer recouping the costs
19associated with meeting the producer's obligations under this
20Act.
21    (c) Nothing in this Act requires a covered entity to
22participate in a producer responsibility organization.
23    (d) A producer or producer responsibility organization
24shall not use the funds collected under this Act to pay a civil
25penalty from the enforcement of this Act or to pay costs

 

 

HB2874- 48 -LRB103 24787 CPF 51116 b

1associated with litigation between a producer or producer
2responsibility organization and the State.
3    (e) Not later than January 1, 2024 and annually
4thereafter, producers, either individually or jointly with
5other producers through a producer responsibility
6organization, shall collectively pay the Agency $400,000 per
7year to administer the program plans established under this
8Act.
 
9    Section 70. Program plan approval.
10    (a) Before approval or rejection of a program plan can be
11made in accordance with this Act, a producer or producer
12responsibility organization shall submit the plan to the
13Advisory Council for review and input as outlined in this Act.
14    (b) No later than 90 days after a producer or producer
15responsibility organization submits a program plan to the
16Agency, the Agency shall approve the program plan as submitted
17or deny the program plan, with reasons for the denial. The
18Agency shall consider the following in deciding whether to
19approve a plan:
20        (1) whether the plan contains all elements required
21    under this Act; and
22        (2) whether the producer or producer responsibility
23    organization has undertaken the required consultation with
24    the Advisory Council, has provided an opportunity for the
25    Advisory Council's input on the plan prior to submission

 

 

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1    of the plan to the Agency, and has thoroughly described
2    how the Advisory Council's input has been addressed by and
3    incorporated into the plan.
4    (c) No later than 3 months after the date a program plan is
5approved, the producer or producer responsibility organization
6shall implement the approved program plan. If the first
7program plan is not approved by the Agency on or before July 1,
82026, the producer or producer responsibility organization
9shall implement the plan as submitted until the plan is
10approved by the Agency.
 
11    Section 75. Alternative collection programs.
12    (a) Producers, either individually or jointly with other
13producers through a producer responsibility organization, may
14develop and operate an alternative collection program to
15collect and manage a type or types of covered materials sold,
16offered for sale, distributed, or served to consumers in the
17State that are not on the minimum recyclable materials list
18created under Section 35. A producer that manages a type of
19packaging material under an approved alternative collection
20program through reuse, recycling, or composting may wholly or
21partially offset the producer's payment obligations under the
22packaging stewardship program with respect to that same type
23of packaging material only.
24    (b) A producer or producer responsibility organization
25seeking to implement an alternative collection program shall

 

 

HB2874- 50 -LRB103 24787 CPF 51116 b

1submit a program plan for the alternative program in
2accordance with Section 45. The Agency shall review and
3approve or deny the program plan for the alternative program
4in accordance with Section 70.
5    (c) A producer or producer responsibility organization
6operating an alternative collection program shall report
7annually to the Agency on the status of the program in
8accordance with the requirements for annual program plan
9reports described in Section 85.
 
10    Section 80. Outreach and education; producer
11responsibility website.
12    (a) Each producer, individually or collectively through a
13producer responsibility organization, shall provide effective
14outreach, education, and communications resources about the
15program that can be used by retailers, collectors, government
16agencies, nonprofit organizations, and other entities
17regarding:
18        (1) proper end-of-life management of covered
19    materials;
20        (2) the location and availability of curbside
21    recycling and drop-off collection opportunities;
22        (3) how to reduce waste, access reuse programs, and
23    prevent litter of covered materials; and
24        (4) recycling instructions that are (i) consistent
25    statewide, except as necessary to take into account

 

 

HB2874- 51 -LRB103 24787 CPF 51116 b

1    differences among local laws and processing capabilities,
2    (ii) easy to understand, and (iii) easily accessible.
3    (b) Producers, either individually or jointly through a
4producer responsibility organization, shall collectively
5initially allocate a minimum of $0.50 per resident of the
6State annually to be spent on education and outreach. The
7amount shall be increased pursuant to subdivision (g) if
8performance targets are not met. Counties, municipal joint
9action agencies, or cities with a population greater than
101,000,000 may choose to receive up to 50% of the allocated
11funding per resident within their jurisdiction annually from
12producers or a producer responsibility organization to be
13spent on education and outreach about the program within the
14county, municipal joint action agency, or city. Where funding
15is provided to counties or municipal joint action agencies,
16they must collaborate with covered entities within their
17jurisdiction and producers or a producer responsibility
18organization to develop an overall education plan.
19    (c) Producers, either individually or jointly with other
20producers through a producer responsibility organization,
21shall undertake direct outreach, education, and communications
22that are designed to assist in attaining or exceeding recovery
23and recycling rates under this Act using any funds available
24after funding is distributed to municipal joint action
25agencies and county governments. A producer or producer
26responsibility organization may choose to dedicate additional

 

 

HB2874- 52 -LRB103 24787 CPF 51116 b

1funding to outreach efforts.
2    (d) The outreach and education required under this Section
3shall:
4        (1) be designed to achieve the management goals of
5    covered materials under this Act, including, but not
6    limited to, the prevention of contamination of covered
7    materials;
8        (2) incorporate, at a minimum, electronic, print,
9    web-based, social media, and community-based social
10    marketing elements;
11        (3) use consistent and easy to understand messaging
12    and education statewide that is adapted for the diverse
13    communities of the State, with the aim of reducing
14    resident confusion regarding the recyclability and
15    end-of-life management options available for different
16    covered materials;
17        (4) be conceptually, linguistically, and culturally
18    accurate for the communities served and reach the State's
19    diverse ethnic populations, including, but not limited to,
20    through meaningful consultation with communities that bear
21    disproportionately higher levels of adverse environmental
22    and social justice impacts;
23        (5) include, at a minimum:
24            (A) consulting on education, outreach, and
25        communications with units of local government and
26        other stakeholders;

 

 

HB2874- 53 -LRB103 24787 CPF 51116 b

1            (B) coordinating with and assisting local
2        municipal programs, municipal contracted programs,
3        solid waste collection companies, and other entities
4        providing services; and
5            (C) developing and providing outreach and
6        education to the diverse ethnic populations in the
7        State; and
8        (6) include a plan to work with participating
9    producers to use labels or markings on covered materials
10    to educate consumers about their proper end-of-life
11    management, including, but not limited to, a plan for how
12    labeling will improve over time and a plan for the
13    creation of consistent labeling standards.
14    (e) Producers, either individually or jointly with other
15producers through a producer responsibility organization,
16shall maintain a public website which shall, at a minimum,
17provide the following information:
18        (A) each producer participating in the approved
19    program plan;
20        (B) the brands and types of covered materials of the
21    producers participating in the approved program plan; and
22        (C) all approved plans, annual reports, and audit
23    results required under this Act.
24    The website shall include information to notify the public
25about how to properly recycle or otherwise dispose of covered
26materials.

 

 

HB2874- 54 -LRB103 24787 CPF 51116 b

1    (f) The Advisory Council, with data reported in the annual
2report required under Section 85, shall evaluate the
3effectiveness of outreach and education efforts under this
4Section to determine whether modification of a program plan is
5necessary to improve the outreach and education efforts. The
6Agency may require a producer or producer responsibility
7organization to develop information that may be used to
8improve outreach and education efforts under this Section.
9    (g) If, within one year after modification of a program
10plan in accordance with this Section, the Advisory Council
11determines a producer or producer responsibility organization
12is still not on track to meet performance targets, the Agency
13may require a producer or producer responsibility organization
14to submit a revised program plan to increase expenditures on
15education and infrastructure, as needed, by a minimum of 10%.
16The Agency may require the submission of subsequent revised
17plans to increase the allocated funding required for education
18and outreach as needed to ensure the program achieves the
19established performance targets.
20    (h) Producers, either individually or jointly with other
21producers through a producer responsibility organization,
22shall inform retailers of their obligation to sell only
23covered materials of producers participating in an approved
24program plan.
 
25    Section 85. Reporting requirements and audits.

 

 

HB2874- 55 -LRB103 24787 CPF 51116 b

1    (a) On or before May 1, 2027, and annually thereafter,
2producers, either individually or jointly with other producers
3through a producer responsibility organization, shall submit a
4report to the Agency that details the performance for the
5prior calendar year's program. Producers, either individually
6or jointly with other producers through a producer
7responsibility organization, shall provide a copy of the
8annual report to the Advisory Council for review and feedback
9prior to submission to the Agency and shall allow 30 days for
10the Advisory Council to provide written comment. A producer or
11producer responsibility organization shall submit to the
12Agency any written comments on the annual report received from
13the Advisory Council as an attachment to the report. The
14annual report shall include, at a minimum:
15        (1) the weight, in tons, of covered materials sold or
16    distributed into the State by the producer or producers
17    who are members of a producer responsibility organization
18    by material type and format;
19        (2) a description of any methods used to collect,
20    transport, and process covered materials, including, but
21    not limited to, a description of collection methods made
22    available to the public and an evaluation of the program's
23    collection convenience;
24        (3) a description of the management of covered
25    materials, including, but not limited to, reuse,
26    recycling, and composting rates, by material type;

 

 

HB2874- 56 -LRB103 24787 CPF 51116 b

1        (4) a calculation of the reuse, recycling, composting,
2    and postconsumer recycled content rates with supporting
3    data by covered material type, provided that packaging or
4    paper products for which a waiver of postconsumer recycled
5    content is granted in accordance with Section 100 shall
6    not be included in the calculation of postconsumer
7    recycled content rates, and a description of their status
8    and progress toward achieving the performance targets set
9    forth in this Act, including, but not limited to, the
10    requirements in subsection (d) of Section 30 and the
11    performance targets established in the program plan
12    pursuant to Section 35, and a description of the efforts
13    proposed in the event of failing to achieve such rates;
14        (5) data on the weight of reclaimed covered materials,
15    by material type, including, but not limited to, the form
16    of any covered materials transported out of state;
17        (6) a description of the process used to verify the
18    method by which reclaimed covered materials were managed;
19        (7) information on the weight and type of
20    contamination in the recycling streams of covered
21    materials and the efforts proposed to reduce
22    contamination, including, but not limited to, through
23    consumer outreach and education;
24        (8) the total cost of implementing the program as
25    determined by an independent financial audit;
26        (9) the status of the grants and programs implemented

 

 

HB2874- 57 -LRB103 24787 CPF 51116 b

1    under the waste prevention and reuse program and the
2    composting infrastructure and education program;
3        (10) independently audited financial statements
4    detailing all payments received from producers covered by
5    the approved plan and issued by a producer responsibility
6    organization;
7        (11) a copy of the independent financial audit;
8        (12) a detailed description of the dues structure for
9    participating producers, including, but not limited to,
10    any incentives or disincentives for covered materials by
11    type, an evaluation of the effectiveness of such dues
12    structure and incentives, and a proposed schedule of dues
13    for the following program year;
14        (13) a detailed description of how the program
15    compensated covered entities, public and private haulers,
16    MRFs, and other service providers for their recycling
17    efforts and other related services;
18        (14) a description of any outreach and education
19    efforts, including, but not limited to, the results of
20    those efforts and sample educational materials as well as
21    recommendations, if any, for how the educational component
22    of the program can be improved;
23        (15) the status of packaging innovation and design
24    characteristics to prevent littering, make covered
25    materials reusable, and reduce overall covered material
26    waste;

 

 

HB2874- 58 -LRB103 24787 CPF 51116 b

1        (16) a calculation of the waste prevention rate with
2    supporting data by covered material type;
3        (17) a detailed description of investments made in
4    infrastructure and market development as related to this
5    Act;
6        (18) as applicable, the total amount, by weight, of
7    each type of covered material collected and managed by
8    each participating producer through alternative collection
9    programs approved under Section 75;
10        (19) as applicable, the total amount, by weight, of
11    each type of covered material produced for which
12    postconsumer recycled content requirements are waived
13    under Section 100; and
14        (20) any other information required by the Advisory
15    Council upon its review of the report.
16    (b) If a producer or producer responsibility organization
17is required to provide information in the annual report that
18it considers to be proprietary, privileged, or confidential,
19the information shall be provided with a claim that the
20information is proprietary, privileged, or confidential in
21accordance with the requirements for exemption under Section 7
22of the Freedom of Information Act. A producer or producer
23responsibility organization shall provide both a complete copy
24and a redacted copy of the annual report to the Agency.
25    (c) No later than 60 days after the date the Agency
26receives the annual report, the Agency shall notify a producer

 

 

HB2874- 59 -LRB103 24787 CPF 51116 b

1or producer responsibility organization of any deficiencies in
2the report. No later than 30 days after receiving this notice
3from the Agency, a producer or producer responsibility
4organization shall submit to the Agency additional information
5to correct the deficiencies. No later than 30 days after
6receiving the additional information, the Agency shall notify
7a producer or producer responsibility organization of any
8uncorrected deficiencies, with continuing response and review
9periods of no more than 30 days until the report is approved by
10the Agency. Upon final approval by the Agency, the report
11shall be posted on the Agency's website and on the website of
12the producer or the producer responsibility organization
13acting on the producer's behalf. If applicable, the version of
14the report to be posted publicly shall be the redacted
15version.
16    (d) Any proposed activities or recommendations from the
17annual report shall be evaluated by the Advisory Council for
18progress and shall be taken into consideration when reviewing
19the report. If a producer or producer responsibility
20organization is not on target to meet the performance
21requirements or other required components of the plan, the
22Agency, in consultation with the Advisory Council, shall
23require the producer or producer responsibility organization
24to submit a revised program plan designed to meet the
25performance requirements or other required components of the
26plan.
 

 

 

HB2874- 60 -LRB103 24787 CPF 51116 b

1    Section 90. Limited antitrust protections. A producer or
2producer responsibility organization that organizes the
3collection, transportation, and processing of covered
4materials, in accordance with a program plan approved under
5this Act, shall not be liable for any claim of a violation of
6antitrust, restraint of trade, or unfair trade practice
7arising from conduct undertaken in accordance with the program
8pursuant to this Act. However, this Section shall not apply to
9any agreement establishing or affecting the price of a covered
10material, product, or the output or production of any
11agreement restricting the geographic area or customers to
12which a covered material or product will be sold.
 
13    Section 95. Penalties.
14    (a) Except as otherwise provided in this Act, any person
15who violates any provision of this Act is liable for a civil
16penalty of $7,000 per violation per day.
17    (b) The penalties provided for in this Section may be
18recovered in a civil action brought in the name of the People
19of the State of Illinois by the State's Attorney of the county
20in which the violation occurred or by the Attorney General.
21Any penalties collected under this Section in an action in
22which the Attorney General has prevailed shall be deposited in
23the Environmental Protection Trust Fund.
24    (c) The Attorney General or the State's Attorney of a

 

 

HB2874- 61 -LRB103 24787 CPF 51116 b

1county in which a violation occurs may institute a civil
2action for an injunction, prohibitory or mandatory, to
3restrain violations of this Act or to require such actions as
4may be necessary to address violations of this Act.
5    (d) The penalties and injunctions provided in this Act are
6in addition to any penalties, injunctions, or other relief
7provided under any other law. Nothing in this Act bars a cause
8of action by the State for any other penalty, injunction, or
9other relief provided by any other law.
10    (e) Any person who knowingly makes a false, fictitious, or
11fraudulent material statement, orally or in writing, to the
12Agency, related to or required by this Act or any rule adopted
13under this Act commits a Class 4 felony, and each such
14statement or writing shall be considered a separate Class 4
15felony. A person who violates this subsection a second or
16subsequent time after being convicted under this subsection
17commits a Class 3 felony.
 
18    Section 100. Postconsumer recycled content. Postconsumer
19recycled content requirements in specific products may be
20waived by the Agency if demonstration is made and the Agency
21approves, in writing, that:
22        (1) the manufacturer cannot achieve the postconsumer
23    recycled content requirements and remain in compliance
24    with applicable rules and regulations adopted by the
25    United States Food and Drug Administration, or any other

 

 

HB2874- 62 -LRB103 24787 CPF 51116 b

1    State or federal law, rule, or regulation;
2        (2) it is not technologically feasible for the
3    manufacturer to achieve the postconsumer recycled content
4    requirements;
5        (3) the manufacturer cannot comply with the
6    postconsumer recycled content requirements due to
7    inadequate availability of recycled material or a
8    substantial disruption in the supply of recycled material;
9    or
10        (4) the manufacturer cannot comply for another reason
11    as determined by the Agency by rule, regulation, or
12    guidance.
 
13    Section 105. Other assistance programs. Nothing in this
14Act shall impact an entity's eligibility for any State or
15local incentive or assistance program to which the entity is
16otherwise eligible.
 
17    Section 997. Severability. The provisions of this Act
18shall be severable and if any phrase, clause, sentence or
19provision of this Act or the applicability thereof to any
20person or circumstance shall be held invalid, the remainder of
21this Act and the application thereof shall not be affected
22thereby.
 
23    Section 999. Effective date. This Act takes effect upon
24becoming law.