Full Text of SB0837 103rd General Assembly
SB0837sam001 103RD GENERAL ASSEMBLY | Sen. Julie A. Morrison Filed: 5/5/2023
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| 1 | | AMENDMENT TO SENATE BILL 837
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 837 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Carpet Stewardship Pilot Program Act. | 6 | | Section 5. Definitions. In this Act: | 7 | | "Agency" means the Illinois Environmental Protection | 8 | | Agency. | 9 | | "Blended carpet" means carpet with a nonuniform face | 10 | | fiber, which is manufactured with multiple polymer types, | 11 | | fiber types, or both, in the face of the constructed material. | 12 | | "Brand" means a name, symbol, word, or mark that | 13 | | identifies the carpet, rather than its components, and | 14 | | attributes the product to the owner or licensee of the brand as | 15 | | the producer. | 16 | | "Carpet" means a manufactured article that is (i) used in |
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| 1 | | commercial buildings, single or multifamily residential | 2 | | buildings, or trade shows, (ii) affixed or placed on the floor | 3 | | or building walking surface as a decorative or functional | 4 | | building interior or exterior feature, and (iii) primarily | 5 | | constructed of a top visible surface of synthetic face fibers | 6 | | or yarns or tufts attached to a backing system derived from | 7 | | synthetic or natural materials. "Carpet" includes, but is not | 8 | | limited to, a commercial or residential broadloom carpet and | 9 | | modular carpet tiles. "Carpet" does not include handmade rugs, | 10 | | area rugs, or mats. | 11 | | "Carpet recovery" means the process by which old carpet is | 12 | | collected, processed, and returned to the economic mainstream | 13 | | in the form of raw materials or products. "Carpet recovery" is | 14 | | further defined to include only those pounds of old carpet | 15 | | that are an output of a processor destined for an end market or | 16 | | carpet reutilization and is not meant to mean the gross input | 17 | | pounds of old carpet accepted by a processor. "Carpet | 18 | | recovery" does not include energy recovery or energy | 19 | | generation by means of combusting old carpet, and it does not | 20 | | include any disposal or use of old carpet within the permitted | 21 | | boundaries of a municipal solid waste landfill unit. | 22 | | "Carpet recovery rate" means the percentage of old carpet | 23 | | that is an output of a processor destined for carpet recovery | 24 | | or reutilization and is computed by dividing the amount of old | 25 | | carpet that is an output of a processor destined for carpet | 26 | | recovery or reutilization by the total amount of old carpet |
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| 1 | | that
is generated over a program year. To determine the annual | 2 | | carpet recovery rates required by this Act the amount of old | 3 | | carpet generated shall be calculated using an industry | 4 | | standard calculation based on annual sales, replacement rate, | 5 | | and the average weight of carpet. | 6 | | "Carpet reuse" means donating or selling an old carpet | 7 | | back into the market for its original intended use, when the | 8 | | old carpet retains its original purpose and performance | 9 | | characteristics. | 10 | | "Carpet stewardship pilot program" means a program | 11 | | established and operated by the representative organization | 12 | | for the collection of old carpet and environmentally sound | 13 | | management of old carpet in counties with a population greater | 14 | | than 300,000 people. | 15 | | "Carpet stewardship pilot program plan" means a single, | 16 | | detailed plan prepared by the representative organization that | 17 | | includes all the information required by this Act. | 18 | | "Collection" means any method of consolidating and | 19 | | temporarily storing old carpet. | 20 | | "Collection site" means a site managed by a representative | 21 | | organization-approved collector to collect and temporarily | 22 | | store old carpet as provided by this Act. | 23 | | "Collector" means any public or private entity approved by | 24 | | the representative organization that provides old carpet | 25 | | collection services.
| 26 | | "Consumer" means any person who makes a purchase at |
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| 1 | | retail. | 2 | | "Distributor" or "wholesaler" means a person who buys or | 3 | | otherwise acquires carpet from another source and sells or | 4 | | offers to sell that carpet to retailers in the pilot program | 5 | | counties. | 6 | | "Installer" means any person or entity contracted for the | 7 | | purpose of installing flooring where old carpet is removed. | 8 | | "Nylon carpet" means carpet made with a uniform face fiber | 9 | | made with either nylon 6 or nylon 6,6. | 10 | | "Old carpet" means carpet that is no longer used for its | 11 | | manufactured purpose. | 12 | | "Person" means any individual, partnership, copartnership, | 13 | | firm, company, corporation, association, joint stock company, | 14 | | trust, estate, political subdivision, State agency, or any | 15 | | other legal entity, or their legal representative, agent, or | 16 | | assign. | 17 | | "PET carpet" means carpet made from polyethylene | 18 | | terephthalate. | 19 | | "Polypropylene carpet" means carpet made from | 20 | | polypropylene. | 21 | | "Processor" means a public or private entity approved by | 22 | | the representative organization to prepare old carpet for | 23 | | reutilization, recovery, or disposal that uses industry | 24 | | recognized processes, such as shredding, grinding, shearing, | 25 | | depolymerization, or other methods recognized by the | 26 | | representative organization, to convert old carpet into |
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| 1 | | finished recovered output ready to be used as an input | 2 | | material for secondary products. | 3 | | "Producer" means a person or entity who manufactures | 4 | | carpet that is sold, offered for sale, or distributed in the | 5 | | pilot program counties. Producer includes any person or entity | 6 | | who imports carpet into the United States that is sold, | 7 | | offered for sale, or distributed in the pilot program counties | 8 | | and that is manufactured by a person or entity who does not | 9 | | manufacture the carpet in the United States. "Producer" does | 10 | | not include a retailer that trademarks or brands carpet that | 11 | | is sold, offered for sale, or distributed in the pilot program | 12 | | counties and that is manufactured by a person other than the | 13 | | retailer. | 14 | | "Program year" means a calendar year. The first program | 15 | | year is 2026. | 16 | | "PTT carpet" means carpet made from polytrimethylene | 17 | | terephthalate. | 18 | | "Representative organization" means the entity | 19 | | incorporated as a nonprofit within the meaning of 26 U.S.C. | 20 | | 501(c)(3) representing carpet producers who are cooperating | 21 | | with one another to collectively establish and operate a | 22 | | carpet recovery and carpet reutilization program for old | 23 | | carpet for the purpose of complying with this Act. | 24 | | "Retailer" means any person engaged in the business of | 25 | | making sales at retail that generate occupation or use tax | 26 | | revenue. "Retailer" does not include a distributor, producer, |
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| 1 | | or wholesaler, as those terms are defined in this Section. | 2 | | "Roll-off dumpster" means a waste container that holds at | 3 | | least 40 cubic yards of waste. | 4 | | "Sale" or "sell" means a transfer of title to carpet for | 5 | | consideration, including a remote sale conducted through a | 6 | | sales outlet, catalog, website, or similar electronic means. | 7 | | "Sale" or "sell" includes a lease through which carpet is | 8 | | provided to a consumer by a producer, distributor, or | 9 | | retailer. | 10 | | "Semitrailer" means any vehicle without motive power, | 11 | | other than a pole trailer, designed for carrying persons or | 12 | | property and for being drawn by a motor vehicle and so | 13 | | constructed that some part of its weight and that of its load | 14 | | rests upon or is carried by another vehicle. | 15 | | "Sorter" means a public or private entity approved by the | 16 | | representative organization that performs the sorting of old | 17 | | carpet for third-party carpet recovery or carpet reuse.
| 18 | | "Sorting" means the method used for sorting old carpet | 19 | | into its various backing types or fiber types for carpet | 20 | | recovery or carpet reuse. | 21 | | "Wool carpet" means carpet made from wool. | 22 | | Section 10. Formation, duties, and powers of the | 23 | | representative organization. | 24 | | (a) Within 120 days after the effective date of this Act, a | 25 | | representative organization shall be incorporated by the |
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| 1 | | producers in the State of Illinois as a nonprofit, to | 2 | | administer and implement the carpet stewardship pilot program. | 3 | | (b) The representative organization's duties include, but | 4 | | are not limited to: | 5 | | (1) selecting a Chairperson, Vice-Chairperson, | 6 | | Secretary, and Treasurer, creating bylaws, and organizing | 7 | | itself into committees to implement this Act; | 8 | | (2) incorporating itself as a 501(c)(3) nonprofit | 9 | | organization and establishing financial accounts for use | 10 | | by the representative organization under this Act; | 11 | | (3) preparing the representative organization plan, | 12 | | and any required amendments, in compliance with this Act; | 13 | | (4) implementing the representative organization plan; | 14 | | (5) submitting to the Agency in the representative | 15 | | organization plan a funding mechanism that will generate | 16 | | sufficient funds to implement the representative | 17 | | organization plan and meet the performance goals | 18 | | established in paragraphs (11) and (12) of subsection (a) | 19 | | of Section 25; in determining the level of funding | 20 | | necessary, the representative organization may take into | 21 | | account program costs in other jurisdictions' approved | 22 | | carpet stewardship plans, annual reports, audits, and | 23 | | other information; | 24 | | (6) approving collectors, sorters, and processors to | 25 | | provide services under this Act; | 26 | | (7) creating and administering a grant program to |
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| 1 | | assist in covering the costs to collect, process, or | 2 | | market old carpet for carpet reutilization or carpet | 3 | | recovery; | 4 | | (8) being responsible for meeting the performance | 5 | | goals specified by this Act; | 6 | | (9) submitting annual program reports as required by | 7 | | this Act; | 8 | | (10) overseeing an annual audit conducted by a | 9 | | third-party entity of the carpet stewardship program's | 10 | | revenues and expenditures; and | 11 | | (11) holding meetings that are open to the public with | 12 | | reasonable notice of the meeting made publicly available. | 13 | | (c) The representative organization shall hire a director | 14 | | and staff within 150 days after the effective date of this Act, | 15 | | which shall be funded as part of the budget for the | 16 | | representative organization program approved in the | 17 | | representative organization plan. | 18 | | Section 15. Carpet Stewardship Advisory Committee. | 19 | | (a) The Carpet Stewardship Advisory Committee ("Advisory | 20 | | Committee") is hereby created. Within 120 days of the | 21 | | effective date of this Act, the Director of the Agency shall | 22 | | appoint members to the Advisory Committee who reflect the | 23 | | racial and gender diversity of this State. The duties of the | 24 | | Advisory Committee include, but are not limited to reviewing | 25 | | and commenting on the carpet stewardship pilot program plan, |
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| 1 | | reviewing and commenting on the annual report, providing | 2 | | recommendations to the representative organization on the | 3 | | implementation of the carpet stewardship pilot program plan, | 4 | | and providing recommendations to the General Assembly by | 5 | | December 31, 2029 on whether the carpet stewardship pilot | 6 | | program should be continued beyond this Act's repeal date and | 7 | | whether it should be expanded to the rest of the State. Such | 8 | | appointments shall include: | 9 | | (1) one individual who is a representative of a
| 10 | | statewide association representing retailers;
| 11 | | (2) one individual who is a representative of a
| 12 | | national association representing manufacturers of carpet;
| 13 | | (3) two individuals who are representatives of carpet | 14 | | processors;
| 15 | | (4) two individuals who are representatives of a | 16 | | statewide association representing waste disposal | 17 | | companies;
| 18 | | (5) two individuals who are representatives of | 19 | | environmental organizations;
| 20 | | (6) two individuals who are representatives of county | 21 | | or municipal joint action agency waste management | 22 | | programs;
| 23 | | (7) one individual who is a representative of a | 24 | | company that uses old carpet to manufacture a new product, | 25 | | not including new carpet; and
| 26 | | (8) one individual who is a representative of an |
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| 1 | | association representing installers of carpet.
| 2 | | (b) Members of the Advisory Committee shall serve without | 3 | | compensation but shall be reimbursed for travel expenses and
| 4 | | any other contingent expenses related to the formation of the
| 5 | | Advisory Committee as a legal and functioning entity as part | 6 | | of the
budget for the carpet stewardship pilot program | 7 | | approved in the carpet stewardship pilot program plan. Members | 8 | | shall serve on the Advisory Committee until a successor is | 9 | | appointed and qualified. The Advisory Committee shall select a | 10 | | chair and vice chair, shall meet as needed, and may establish | 11 | | bylaws.
| 12 | | Section 20. Carpet stewardship pilot program and sale | 13 | | requirement. | 14 | | (a) The carpet stewardship pilot program established under | 15 | | this Act applies only to counties in the pilot program with a | 16 | | population of 300,000 or more. | 17 | | (b) For all carpet sold in areas of the State described in | 18 | | subsection (a), the representative organization shall | 19 | | implement a carpet stewardship program that (i) manages carpet | 20 | | by reducing its waste generation; (ii) promotes carpet | 21 | | recovery and carpet reuse; and (iii) provides for negotiation | 22 | | and execution of agreements to collect, transport, process, or | 23 | | market the old carpet for end-of-life carpet recovery or | 24 | | carpet reuse. | 25 | | (c) On and after January 1, 2026, a producer or |
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| 1 | | distributor may not offer for sale any carpet to any person in | 2 | | this State, unless the producer has registered with the | 3 | | representative organization, has provided its share of | 4 | | funding, on an annual basis, to implement the representative | 5 | | organization plan as approved by the Agency pursuant to | 6 | | Section 45, and is subject to penalties under Section 70. | 7 | | Section 25. Stewardship plan. | 8 | | (a) By July 1, 2025, and by July 1 every 3 years | 9 | | thereafter, the representative organization shall submit a | 10 | | 3-year carpet stewardship pilot program plan to the Agency for | 11 | | the geographic area defined in subsection (a) of Section 20 | 12 | | and shall receive approval of the plan. The plan shall | 13 | | include, at a minimum, each of the following: | 14 | | (1) Certification that the carpet stewardship pilot | 15 | | program will accept for collection all old carpet, | 16 | | regardless of type or which producer manufactured the | 17 | | product and its individual components. | 18 | | (2) Contact information for each individual | 19 | | representing the representative organization, a | 20 | | designation of a program manager responsible for | 21 | | administering the program in the pilot program counties, | 22 | | and a list of all producers participating in the carpet | 23 | | stewardship pilot program and the brands covered by the | 24 | | program. | 25 | | (3) A description of the methods by which old carpet |
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| 1 | | will be collected in the pilot program counties, including | 2 | | an explanation of how the collection system will achieve a | 3 | | convenience standard of having collection sites in all | 4 | | counties covered by this Act. | 5 | | (4) An evaluation, beginning with the second 3-year | 6 | | plan submitted by July 1, 2028, of the feasibility and | 7 | | cost of expanding the pilot program to additional counties | 8 | | in the State of Illinois, with the eventual goal of | 9 | | serving every county in the State. | 10 | | (5) A description of how the adequacy of the | 11 | | collection program will be monitored, evaluated, and | 12 | | maintained. | 13 | | (6) The names and locations of collectors,
sorters, | 14 | | and processors who have been approved by the | 15 | | representative organization to manage old carpet. | 16 | | (7) A description of how the old carpet and the | 17 | | products' components will be safely and securely | 18 | | transported, tracked, and handled from collection through | 19 | | final carpet recovery and processing. | 20 | | (8) A description of the methods to be used to reuse, | 21 | | deconstruct, or recover old carpet to ensure that the | 22 | | products' components, to the extent feasible, are | 23 | | transformed or remanufactured into finished products for | 24 | | use. | 25 | | (9) A description of the methods to be used to manage | 26 | | or dispose of old carpet that is not eligible for carpet |
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| 1 | | recovery or carpet reuse. | 2 | | (10) A description of the promotion and outreach | 3 | | activities and proposed budget that will be used to | 4 | | encourage participation in the collection and carpet | 5 | | recovery programs and how the activities' effectiveness | 6 | | will be evaluated and the program modified, if necessary. | 7 | | (11) A 3-year rolling performance goal, including an | 8 | | estimate of the percentage of old carpet that will be | 9 | | collected and managed through carpet reuse or carpet | 10 | | recovery during each of the next 3 years of the | 11 | | stewardship plan, with a minimum goal of achieving a 25% | 12 | | carpet recovery rate in the pilot program counties | 13 | | described in subsection (a) of Section 20 by December 31, | 14 | | 2028. The performance goals shall include a specific goal | 15 | | for the amount of old carpet that will be collected and | 16 | | managed through carpet recovery and carpet reuse during | 17 | | each year of the plan. | 18 | | (12) The representative organization shall achieve a | 19 | | carpet recovery rate goal of 40% by December 31, 2031 for | 20 | | the 3-year plan period beginning January 1, 2029. | 21 | | (13) A discussion of the status of end markets for old | 22 | | carpet and what, if any, additional end markets are needed | 23 | | to improve the functioning of the program. | 24 | | (14) A funding mechanism that demonstrates sufficient | 25 | | producer funding to carry out the plan, including the | 26 | | administrative, operational, and capital costs of |
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| 1 | | implementing the plan, and payment of incentive payments | 2 | | to carpet collectors, processors, and end use markets to | 3 | | assist with the implementation of this Act. | 4 | | (15) Annual budgets showing revenue and expenditure | 5 | | projections for the current program year and projected for | 6 | | the next 2 program years. | 7 | | (16) A process by which the financial activities of | 8 | | the representative organization that are related to the | 9 | | implementation of the plan shall be subject to an annual | 10 | | independent audit, conducted by a third party. | 11 | | (17) A description of the educational program and | 12 | | materials that shall be implemented and used to train | 13 | | operators of collection sites on how to properly collect | 14 | | old carpet and reduce contamination. Such program shall | 15 | | include consumer education materials that shall be | 16 | | distributed by retailers who sell new carpet in the areas | 17 | | of the State described in subsection (a) of Section 20 at | 18 | | the point of sale of new carpet. Such materials may | 19 | | include the following: (i) notification to the consumer | 20 | | that the cost of new carpet may incorporate producer | 21 | | funding used to responsibly collect and dispose of old | 22 | | carpet and (ii) general information about the carpet | 23 | | stewardship pilot program, including information about the | 24 | | collection sites, information about the collection | 25 | | process, and contact information for key staff and | 26 | | management of the representative organization. |
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| 1 | | (18) At no time shall a collection site be subject to a | 2 | | fine or extra charge for contamination by either the | 3 | | representative organization or a carpet processor. | 4 | | However, collection sites that continue to ship | 5 | | contaminated old carpet to processors may be removed from | 6 | | the stewardship program by the representative | 7 | | organization. | 8 | | (19) Baseline information, for the most current year | 9 | | for which data is available, on the amount of square feet | 10 | | and pounds of carpet sold in the pilot program counties, | 11 | | by type of polymer or nonpolymer material used to make the | 12 | | carpet. | 13 | | (20) A discussion of the feasibility, cost, and | 14 | | effectiveness of labeling the backside of new carpet with | 15 | | the polymer type or nonpolymer material used to | 16 | | manufacture the carpet to assist processors in more easily | 17 | | identifying the type of old carpet collected for | 18 | | processing. | 19 | | (21) A description of the program that shall be | 20 | | implemented to train carpet installers on how to properly | 21 | | manage old carpet so that it is eligible to be managed | 22 | | through carpet reuse or carpet recovery under this Act, | 23 | | including, but not limited to, the development of videos | 24 | | and written materials regarding the carpet recovery | 25 | | program. | 26 | | (b) An update to the plan shall be submitted, at a minimum, |
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| 1 | | every 3 years, or if the representative organization | 2 | | determines that a plan update is needed, prior to that time. | 3 | | (c) If the representative organization determines that any | 4 | | proposed significant changes or modifications to the plan or | 5 | | its implementation are needed, within 30 days of that | 6 | | determination the representative organization shall submit to | 7 | | the Agency a written plan update for review and approval in | 8 | | accordance with Section 30. | 9 | | Section 30. Review and approval of the carpet stewardship | 10 | | pilot program and plan updates. | 11 | | (a) After receipt of a proposed plan or plan update, the | 12 | | Agency shall determine whether the plan or plan update | 13 | | complies with Section 25. If the Agency determines that the | 14 | | plan or plan update complies with Section 25, the Agency shall | 15 | | notify the representative organization of the plan or plan | 16 | | update approval in writing within 90 days of receipt of the | 17 | | plan or plan update. If the Agency determines that the plan or | 18 | | plan update does not comply with Section 25, the Agency shall | 19 | | notify the representative organization of the plan or plan | 20 | | update rejection in writing within 90 days of receipt of the | 21 | | plan or plan update and include the reasons why the plan or | 22 | | plan update does not comply with Section 25. The | 23 | | representative organization shall submit a revised plan to the | 24 | | Agency within 60 days after receiving a notice of rejection. | 25 | | Any proposed changes to a plan or plan update must be reviewed |
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| 1 | | and approved by the Agency in accordance with this subsection. | 2 | | (b) The plan and plan updates approved by the Agency shall | 3 | | be placed on the Agency's website and made available at the | 4 | | Agency's headquarters for public review in accordance with the | 5 | | Freedom of Information Act. | 6 | | Section 32. Implementation of the carpet stewardship pilot | 7 | | plan. The representative organization shall implement the plan | 8 | | components under subsection (a) of Section 25 upon approval of | 9 | | the plan or plan update by the Agency under Section 30. The | 10 | | representative organization shall monitor the implementation | 11 | | of the plan and shall have the authority to require specific | 12 | | action by its director and staff to meet the plan | 13 | | implementation requirements under this Section. | 14 | | Section 36. Collection of old carpet. | 15 | | (a) No later than January 1, 2026, in any county with a | 16 | | population of greater than 300,000 people, any installer | 17 | | engaged in removing old carpet from a residence or business | 18 | | shall transport, or contract to transport, all old carpet to a | 19 | | representative organization-approved old carpet collection | 20 | | site as defined in Section 10. | 21 | | (b) Approved carpet collection sites as defined in Section | 22 | | 10 shall ensure that old carpet is collected in the prescribed | 23 | | conditions required by the representative organization plan. | 24 | | The conditions must also include, but are not limited to, the |
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| 1 | | following requirements: | 2 | | (1) Old carpet must be kept in a location that allows | 3 | | it to remain dry at all times. | 4 | | (2) Containers holding collected old carpet must be | 5 | | free of all noncarpet discarded waste items. | 6 | | (3) Prior to shipment to a processor, containers | 7 | | holding discarded carpet must be filled to the following | 8 | | minimum standards: | 9 | | (A) Roll-off dumpsters shall be filled to a | 10 | | minimum of 8 tons. | 11 | | (B) Semitrailers shall be filled to a minimum of | 12 | | 13 tons. | 13 | | (4) Approved collection sites must permit an approved | 14 | | processor's prescribed container to be housed on site for | 15 | | loading by the collector for pickup at the collection | 16 | | site. | 17 | | (c) Any approved collection site that has collected old | 18 | | carpet as prescribed by the representative organization plan | 19 | | and whose full container volume is not removed by a registered | 20 | | processor upon 3 business days' electronic notice to the | 21 | | processor stating that collected old carpet is ready for | 22 | | removal may dispose of that container's contents in a | 23 | | landfill. | 24 | | Section 37. Economic support for approved carpet | 25 | | collection sites. The representative organization program |
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| 1 | | shall pay approved old carpet collection sites for costs, | 2 | | services, and infrastructure improvements as follows: | 3 | | (1) Reimbursement for reasonable costs, as | 4 | | pre-approved by the clearinghouse, to adapt sites for old | 5 | | carpet collection as required by this Act, including, but | 6 | | not limited to, one-time costs for constructing the needed | 7 | | structure to make the collection of carpet safe and | 8 | | convenient, and to ensure adequate room to maneuver old | 9 | | carpet collection equipment in such a manner so as not to | 10 | | disrupt the normal flow of activity at the collection | 11 | | site. | 12 | | (2) A recovery fee equivalent to $20 per ton for all | 13 | | old carpet collected that is subject to this Act and | 14 | | loaded into trailers at the collector's site in accordance | 15 | | with subsection (b) of Section 36. | 16 | | (3) Approved carpet collection sites located at waste | 17 | | transfer or waste disposal facilities permitted by the | 18 | | Agency may, at their discretion, charge the generator of | 19 | | such discarded carpet customary and proprietary collection | 20 | | and disposal fees. | 21 | | (4) Approved carpet collection sites may not charge a | 22 | | processor any fee for removal of carpet discarded from the | 23 | | collection site location. | 24 | | (5) Economic support for approved carpet collectors | 25 | | under this Section shall be reviewed by the representative | 26 | | organization every 3 years as plans are submitted to the |
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| 1 | | Agency.
| 2 | | Section 40. State action antitrust exemption. | 3 | | (a) Except as provided in subsection (b), any action by a | 4 | | representative organization or its members pursuant to this | 5 | | Act is not a violation of the Illinois Antitrust Act, the | 6 | | Uniform Deceptive Trade Practices Act, or the Consumer Fraud | 7 | | and Deceptive Business Practices Act. | 8 | | Each producer and the representative organization shall be | 9 | | immune from liability for any claim of violation of antitrust | 10 | | law or unfair trade practice if the conduct is a violation of | 11 | | antitrust law or unfair trade practice law, to the extent the | 12 | | producer or representative organization is exercising | 13 | | authority under the provisions of this Act. Such immunity from | 14 | | claims of antitrust violations and unfair trade practices | 15 | | applies to all of the following: | 16 | | (1) the creation, implementation, or management of a | 17 | | carpet stewardship pilot program plan approved by the | 18 | | Agency pursuant to Section 30 of this Act and the types or | 19 | | quantities of carpet being recycled or otherwise managed | 20 | | as described in this Act; | 21 | | (2) the cost and structure of an approved carpet | 22 | | stewardship pilot program plan; | 23 | | (3) the establishment and administration of a carpet | 24 | | stewardship pilot program funding as described in Section | 25 | | 45 of this Act.
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| 1 | | (b) Subsection (a) does not apply to an agreement that | 2 | | does any of the following: | 3 | | (1) fixes a price of carpet, except for any agreement | 4 | | related to funding the carpet stewardship pilot program or | 5 | | to a carpet stewardship pilot program plan submitted to | 6 | | the Agency and otherwise in accordance with this Act; | 7 | | (2) fixes the output of production of carpet; or | 8 | | (3) restricts the geographic area in which, or the | 9 | | customers to whom, carpet will be sold. | 10 | | Section 45. Requirements applicable to producers. | 11 | | (a) No later than January 1, 2024, producers of carpet | 12 | | shall provide funding to the representative organization | 13 | | sufficient to cover the administrative costs of establishing | 14 | | the representative organization in calendar year 2024 and | 15 | | annually thereafter to cover the costs of developing and | 16 | | implementing the representative organization plan. The funding | 17 | | mechanism: | 18 | | (1) shall take into account the financial burden that | 19 | | blended carpet, nylon carpet, PET carpet, polypropylene | 20 | | carpet, and wool carpet have on the representative | 21 | | organization program costs; | 22 | | (2) shall be differentiated by the type of material, | 23 | | recycling cost, recycling content, and other qualities | 24 | | related to toxicity, resource use, and recyclability; | 25 | | (3) shall ensure an equitable and efficient allocation |
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| 1 | | of financial responsibility among producers; and | 2 | | (4) shall be at a level sufficient to cover the annual | 3 | | costs of the representative organization program, as | 4 | | reported to the Agency in the representative organization | 5 | | plan, and based on program metrics and outcomes; if the | 6 | | Agency determines the level of funding from the producers | 7 | | is not sufficient to cover the annual costs of the | 8 | | representative organization program, the Agency may | 9 | | request additional funding from the representative | 10 | | organization. | 11 | | (b) The amount that each producer pays to fund the | 12 | | representative organization program on an annual basis shall | 13 | | be considered proprietary information that is privileged or | 14 | | confidential and shall not be disclosed to the representative | 15 | | organization or the public. However, in order to determine if | 16 | | each producer is paying its proper share, an independent | 17 | | professional accounting firm shall be hired by the | 18 | | representative organization to review the payments and verify | 19 | | that the funding provided by each producer is in compliance | 20 | | with the funding mechanism agreed to by the producers. | 21 | | (c) Producers, working with the representative | 22 | | organization, shall provide consumers with educational | 23 | | materials to be provided to consumers at the point of sale | 24 | | regarding the representative organization program. The | 25 | | materials shall include information regarding available | 26 | | end-of-life management options for old carpet offered through |
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| 1 | | the carpet stewardship program, and may include additional | 2 | | information as defined in subdivision (a)(18) of Section 20. | 3 | | (d) Producers who sell carpet in this State shall register | 4 | | with the representative organization by October 1, 2024 and | 5 | | annually thereafter for as long as that producer sells carpet | 6 | | in this State. | 7 | | Section 50. Requirements applicable to retailers and | 8 | | distributors. | 9 | | (a) On and after January 1, 2026, no carpet may be sold in | 10 | | this State unless the carpet's producer has registered with | 11 | | the representative organization under subsection (d) of | 12 | | Section 45. | 13 | | (b) Any retailer or distributor may participate, on a | 14 | | voluntary basis, as a designated collection point under a | 15 | | product stewardship program and in accordance with applicable | 16 | | law. | 17 | | (c) No retailer or distributor shall be found to be in | 18 | | violation of this Section if, on the date the carpet was | 19 | | ordered from the producer or its agent, the producer was | 20 | | registered on the representative organization's website in | 21 | | accordance with this Act. | 22 | | (d) Retailers shall provide consumers with educational | 23 | | materials, developed by producers and the representative | 24 | | organization, that shall include, but are not limited to, (i) | 25 | | information regarding available end-of-life management options |
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| 1 | | for old carpet, (ii) information notifying the consumer of the | 2 | | importance of carpet recovery, (iii) information notifying the | 3 | | customer that the cost of carpet is impacted by the costs of | 4 | | the carpet stewardship program, and
(iv) any other information | 5 | | deemed applicable by the representative organization | 6 | | consistent with paragraph (17) of subsection (a) of Section | 7 | | 25. | 8 | | Section 55. Posting of information. | 9 | | (a) Beginning March 1, 2026, and annually thereafter, the | 10 | | representative organization shall post on its website the list | 11 | | of carpet producers that registered with the representative | 12 | | organization, in accordance with subsection (d) of Section 45. | 13 | | (b) Beginning January 1, 2026, and annually thereafter, | 14 | | for the benefit of assisting consumers who wish to find | 15 | | collection sites for recovering carpet, the Agency shall post | 16 | | on its website the location of all collection sites identified | 17 | | to the Agency by the representative organization in its plans | 18 | | and annual reports. | 19 | | (c) Beginning May 1, 2027, and annually thereafter, the | 20 | | Agency shall post on its website copies of the annual reports | 21 | | required under Section 60. | 22 | | Section 60. Annual carpet stewardship pilot program | 23 | | reports. By April 1, 2027, and by April 1 of each year | 24 | | thereafter, the representative organization shall submit a |
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| 1 | | report to the Agency that includes, for the previous program | 2 | | year, a description of the carpet stewardship pilot program, | 3 | | including, but not limited to, the following: | 4 | | (1) the amount of carpet sold by square feet and | 5 | | pounds in the affected counties during the reporting | 6 | | period by polymer type or nonpolymer material; | 7 | | (2) a description of the methods used to collect, | 8 | | transport, and process old carpet in the affected | 9 | | counties, and a listing of the persons used to collect, | 10 | | transport, and process old carpet; | 11 | | (3) identification of all old carpet collection sites | 12 | | in the pilot program counties and whether the requirement | 13 | | of paragraph (3) of subsection (a) of Section 25 has been | 14 | | met; | 15 | | (4) the weight of all old carpet collected and managed | 16 | | through carpet reuse or carpet recovery in the pilot | 17 | | program counties, a comparison to the performance goals | 18 | | and carpet recovery rates established in the | 19 | | representative organization plan, and, if appropriate, an | 20 | | explanation stating the reason or reasons performance | 21 | | goals were not met; | 22 | | (5) the weight of old carpet collected in the pilot | 23 | | program counties but not eligible for carpet reuse or | 24 | | carpet recovery and its ultimate disposition, and a | 25 | | comparison to the performance goals in the representative | 26 | | organization plan; |
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| 1 | | (6) the total cost of implementing the representative | 2 | | organization plan and a copy of the independent audit | 3 | | regarding the financial activities of the representative | 4 | | organization; | 5 | | (7) a proposed budget for implementing the | 6 | | representative organization plan in the subsequent | 7 | | calendar year; | 8 | | (8) an evaluation of the producers' funding mechanism | 9 | | and its ability to properly fund the implementation of the | 10 | | representative organization plan, including whether the | 11 | | incentive payments to collectors, processors, and end | 12 | | markets for managing carpet are adequate to ensure that | 13 | | the old carpet can be carpet reused or carpet recovered | 14 | | under the program; | 15 | | (9) an identification of the facilities processing | 16 | | carpet, the weight processed at each facility, and each | 17 | | facility's processing capacity; | 18 | | (10) an evaluation of the effectiveness of the | 19 | | representative organization plan, and anticipated steps, | 20 | | if needed, to improve performance; and | 21 | | (11) samples of educational materials provided to | 22 | | consumers and carpet installers, and an evaluation of the | 23 | | effectiveness of the materials and the methods used to | 24 | | disseminate the materials. The evaluation shall include, | 25 | | but shall not be limited to, information on the number of | 26 | | consumers and carpet installers that received or viewed |
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| 1 | | the educational materials, and any consumer and carpet | 2 | | installer survey data that may have been collected | 3 | | regarding the educational materials used. | 4 | | Section 65. Administrative fee. | 5 | | (a) The representative organization shall remit to the | 6 | | Agency an annual fee of $100,000 to be used for administrative | 7 | | costs pursuant to this Act. This amount shall be included in | 8 | | the annual budget for the representative organization plan. | 9 | | The representative organization shall reimburse the | 10 | | Comptroller for costs related to reviewing the annual carpet | 11 | | stewardship program audits. | 12 | | (b) The representative organization shall pay the Agency's | 13 | | administrative fee under subsection (a) on or before January | 14 | | 1, 2026, and annually thereafter. | 15 | | (c) The Agency shall deposit the fees collected under this | 16 | | Section into the Solid Waste Management Fund. | 17 | | Section 70. Enforcement. | 18 | | (a) On and after January 1, 2026, no producer, | 19 | | distributor, or retailer shall sell or offer for sale carpet | 20 | | to any person in this State if the producer of the carpet is | 21 | | not registered with the representative organization or has not | 22 | | remitted adequate funding pursuant to Section 45. | 23 | | (b) No retailer or distributor shall be found in violation | 24 | | of the provisions of subsection (a) if, on the date the carpet |
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| 1 | | was ordered from the producer or its agent, the producer was | 2 | | listed on the representative organization's website in | 3 | | accordance with the provisions of subsection (a) of Section | 4 | | 55. | 5 | | (c) The Attorney General or the State's Attorney of the | 6 | | affected counties in which the violation occurred are | 7 | | authorized to seek a civil penalty in the amount of $5,000 per | 8 | | day for each violation against any producer who violates the | 9 | | registration requirements under subsection (d) of Section 45 | 10 | | or who fails to remit the funding under Section 45. | 11 | | (d) The Attorney General or the State's Attorney of the | 12 | | county in which the violation occurred
are authorized to seek | 13 | | a civil penalty in the amount of $5,000 per day for each
| 14 | | violation against any producer, distributor, or retailer who | 15 | | sells or offers for sale carpet
affected counties in this if | 16 | | the producer of the carpet is not registered with the
| 17 | | representative organization under subsection (d) of Section 45 | 18 | | or has not remitted the required funding under
Section 45. | 19 | | (e) The penalties provided for in this Section may be | 20 | | recovered in a civil action. Any penalties
collected under | 21 | | this Section in an action in which the Attorney General has | 22 | | prevailed shall be
deposited into the Environmental Protection | 23 | | Trust Fund, to be used in accordance with the
provisions of the | 24 | | Environmental Protection Trust Fund Act. | 25 | | (f) The State's Attorney of the county in which the | 26 | | violation occurred, or the Attorney General,
may, at the |
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| 1 | | request of the Agency or on his or her own motion, institute a | 2 | | civil action for an injunction,
prohibitory or mandatory, to | 3 | | restrain violations of this Act or to require such other | 4 | | actions as
may be to address violations of this Act. | 5 | | (g) The State's Attorney of the county in which the | 6 | | violation occurred, or the Attorney
General, may, at the | 7 | | request of the Agency or on his or her own motion, institute a | 8 | | civil action
for an injunction, prohibitory or mandatory, to | 9 | | restrain violations of this Act, any rule
or regulation | 10 | | adopted under this Act, any permit or to require such other | 11 | | actions as may be
to address violations of this Act or any rule | 12 | | or regulation adopted under this
Act. | 13 | | (h) Nothing in this Act prohibits a retailer or | 14 | | distributor from selling its inventory of carpet existing | 15 | | prior to January 1, 2026. | 16 | | (i) Nothing in this Act mandates or otherwise requires and | 17 | | nothing in the representative organization plan shall mandate | 18 | | or otherwise require participation of the waste disposal | 19 | | industry in the carpet stewardship program created by this | 20 | | Act. | 21 | | Section 95. Repeal. This Act is repealed on January 1, | 22 | | 2032. | 23 | | Section 97. Severability. The provisions of this Act are | 24 | | severable under Section 1.31 of the Statute on Statutes.
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
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