Bill Text: IL HB4064 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Creates the Extended Producer Responsibility and Recycling Refund Act. Defines terms. Provides for the registration of producer responsibility organizations and service providers. Provides for the duties of a packaging producer responsibility organization and a recycling refund producer responsibility organization. Establishes advisory boards. Provides for responsibilities of packaging producers. Provides for restrictions on introduction and sales of covered materials and covered beverage containers. Provides for requirements for service providers. Provides for responsibilities for the Environmental Protection Agency. Provides for requirements for packaging program needs assessments; a packaging producer program plan; and a recycling refund program plan. Provides for procedures for plan and amendment review and approval. Provides for requirements for a coordination plan; performance targets; producer fees; a website; an applicable refund value for covered beverage containers; a convenience standard for redemption of containers; and a redemption system. Provides that any deposits that are not returned to the consumer must only be used by the recycling refund producer organization for specified purposes. Provides for requirements for a refund value to drop-off facilities and material recovery facilities. Requires reporting, including by a packaging producer responsibility organization, a recycling refund producer responsibility organization, the Environmental Protection Agency, and materials recovery facilities and drop-off facilities. Provides for immunity from liability for antitrust, restraint of trade, and unfair trade practices. Requires rulemaking by the Agency. Provides for enforcement by the Agency and penalties. Creates the Packaging Producer Responsibility Program Fund with a continuing appropriation to the Agency and the Recycling Refund Program Fund with a continuing appropriation to the Agency. Makes conforming changes to the State Finance Act.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2025-05-21 - Referred to Rules Committee [HB4064 Detail]

Download: Illinois-2025-HB4064-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB4064 Introduced 5/21/2025, by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.1030 new
30 ILCS 105/5.1031 new
Creates the Extended Producer Responsibility and Recycling Refund Act. Defines terms. Provides for the registration of producer responsibility organizations and service providers. Provides for the duties of a packaging producer responsibility organization and a recycling refund producer responsibility organization. Establishes advisory boards. Provides for responsibilities of packaging producers. Provides for restrictions on introduction and sales of covered materials and covered beverage containers. Provides for requirements for service providers. Provides for responsibilities for the Environmental Protection Agency. Provides for requirements for packaging program needs assessments; a packaging producer program plan; and a recycling refund program plan. Provides for procedures for plan and amendment review and approval. Provides for requirements for a coordination plan; performance targets; producer fees; a website; an applicable refund value for covered beverage containers; a convenience standard for redemption of containers; and a redemption system. Provides that any deposits that are not returned to the consumer must only be used by the recycling refund producer organization for specified purposes. Provides for requirements for a refund value to drop-off facilities and material recovery facilities. Requires reporting, including by a packaging producer responsibility organization, a recycling refund producer responsibility organization, the Environmental Protection Agency, and materials recovery facilities and drop-off facilities. Provides for immunity from liability for antitrust, restraint of trade, and unfair trade practices. Requires rulemaking by the Agency. Provides for enforcement by the Agency and penalties. Creates the Packaging Producer Responsibility Program Fund with a continuing appropriation to the Agency and the Recycling Refund Program Fund with a continuing appropriation to the Agency. Makes conforming changes to the State Finance Act.
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A BILL FOR
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AN ACT concerning safety.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Extended Producer Responsibility and Recycling Refund Act.
Section 5. Definitions. As used in this Act, unless the
context requires otherwise:
"Agency" means the Illinois Environmental Protection
Agency.
"Applicable refund value" means the applicable refund
value established under this Act.
"Beverage" means a drinkable liquid intended for human
oral consumption. "Beverage" does not include: (1) a drug
regulated under the Federal Food, Drug, and Cosmetic Act, 21
U.S.C. 301 et seq.; (2) 100% fluid milk; (3) infant formula; or
(4) a meal replacement liquid.
"Beverage container" means any prepackaged container for
beverages.
"Beverage container collection mechanism" means any manual
or technological means by which empty covered beverage
containers are properly identified as part of processing a
consumer's refund.
"Brand" means a name, symbol, word, or mark that

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identifies a product and attributes the product and its
components, including packaging, to the brand owner.
"Brand owner" means a person that owns or licenses a brand
or that otherwise has rights to market a product under the
brand, whether or not the brand's trademark is registered.
"Canner" means an individual who collects and redeems
covered beverage containers for critical income.
"Centralized processing facilities" means a facility that
sorts and then bales or aggregates covered beverage containers
and associated materials for the purpose of recycling.
"Collection rate" means the amount of a covered material
by covered materials type collected by service providers and
transported for recycling or composting divided by the total
amount of the type of a covered material by covered materials
type sold or distributed into the State by the relevant unit of
measurement in the approved program plan.
"Compostable material" means a covered material that:
(1) meets, and is labeled to reflect that it meets,
the American Society for Testing and Materials Standard
Specification for Labeling of Plastics Designed to be
Aerobically Composted in Municipal or Industrial
Facilities (D6400) or its successor;
(2) meets, and is labeled to reflect that it meets,
the American Society for Testing and Materials Standard
Specification for Labeling of End Items that Incorporate
Plastics and Polymers as Coatings or Additives with Paper

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and Other Substrates Designed to be Aerobically Composted
in Municipal or Industrial Facilities (D6868) or its
successor;
(3) is composed of only wood without any coatings or
additives; or
(4) is composed of only paper without any coatings or
additives.
"Composting" means the controlled microbial degradation of
source-separated compostable materials to yield a humus-like
product.
"Composting rate" means the amount of compostable covered
material that is managed through composting, divided by the
total amount of compostable covered material sold or
distributed into the State by the relevant unit of measurement
in the approved program plan.
"Coordination plan" means the joint plan developed by the
packaging program producer responsibility organization and the
recycling refund producer responsibility organization.
"Covered beverage container" means any beverage container
subject to a recycling refund.
"Covered entity" means a person or location that receives
covered services for covered materials in accordance with the
requirements of this Act, including:
(1) a single-family residence;
(2) a multifamily residence;
(3) a public or private elementary or secondary

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school;
(4) a nonprofit corporation with annual revenue of
less than $35,000,000; and
(5) a State agency, political subdivision, public
area, public entity or other governmental unit.
"Covered material" means packaging and paper products sold
or supplied in the State. "Covered material" does not include
exempt materials.
"Covered materials type" means paper, plastic, metal,
glass, or any other specific type of covered material that:
(1) can be categorized based on distinguishing
chemical or physical properties, including properties that
allow a covered materials type to be aggregated into a
discrete commodity category for purposes of reuse,
recycling, or composting; and
(2) is based on similar uses in the form of a product
or package.
"Covered services" means collecting, transferring,
transporting, sorting, processing, recovering, preparing, or
otherwise managing for purposes of source reduction, reuse,
recycling, or composting.
"De minimis producer" means a person that in the most
recent fiscal year:
(1) introduced less than one ton of covered material
into this State; or
(2) earned global gross revenues of less than

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$2,000,000.
"Drop-off facilities" means a specific area where
individuals may bring household recyclable materials to be
sorted into material-specific receptacles and is located in
the State.
"Environmental impact" means the impact of a covered
material on human health and the environment from extraction
and processing of the raw materials composing the covered
material through manufacturing; distribution; use; recovery
for reuse, recycling, or composting; and final disposal.
"Environmental justice area" means a census block group
with a low-income or minority population greater than twice
the statewide average.
"Executive director" means the executive director of the
packaging producer responsibility organization or recycling
refund producer responsibility organization.
"Exempt materials" means materials, or any portion of
materials, that are:
(1) packaging for infant formula, as defined in 21
U.S.C. 321(z);
(2) packaging for medical food, as defined in 21
U.S.C. 360ee(b)(3);
(3) packaging for a fortified oral nutritional
supplement used by persons who require supplemental or
sole source nutrition to meet nutritional needs due to
special dietary needs directly related to cancer, chronic

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kidney disease, diabetes, malnutrition, or failure to
thrive, as those terms are defined by the International
Classification of Diseases, Tenth Revision;
(4) packaging for a product regulated as a drug or
medical device by the United States Food and Drug
Administration, including associated components and
consumable medical equipment;
(5) packaging for a medical equipment or product used
in medical settings that is regulated by the United States
Food and Drug Administration, including associated
components and consumable medical equipment;
(6) drugs, biological products, parasiticides, medical
devices, or in vitro diagnostics that are used to treat,
or that are administered to, animals and are regulated by
the United States Food and Drug Administration under the
federal Food, Drug, and Cosmetic Act, 21 U.S.C. 301 et
seq., or by the United States Department of Agriculture
under the federal Virus-Serum-Toxin Act, 21 U.S.C. 151 et
seq.;
(7) packaging for products regulated by the United
States Environmental Protection Agency under the federal
Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. 136
et seq.;
(8) packaging used to contain liquefied petroleum gas
and are designed to be refilled;
(9) paper products used for a newspaper's print

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publications, including supplements or enclosures, that
include content derived from primary sources related to
news and current events;
(10) paper products used for a magazine's print
publication that has a circulation of less than 95,000 and
that primarily includes content derived from primary
sources related to news and current events;
(11) packaging used to contain hazardous or flammable
products regulated by the 2012 federal Occupational Safety
and Health Administration Hazard Communication Standard,
29 CFR 1910.1200, that prevent the packaging from being
source reduced or made reusable, recyclable, or
compostable, as determined by the Agency;
(12) packaging that is being collected and properly
managed through a paint producer responsibility program
approved by the Agency;
(13) exempt materials under this Act, as determined by
the Agency; or
(14) covered materials that:
(A) a producer distributes to another producer;
(B) are subsequently used to contain a product,
and the product is distributed to a commercial or
business entity for the production of another product;
and
(C) are not introduced to a person other than the
commercial or business entity that first received the

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product used for the production of another product.
"Express redemption site" means a designated return point
that allows consumers to return covered beverage containers,
and that do not require cash handling on-site; rather, upon
return, beverage containers are transported to centralized
processing facilities, and refunds are credited to the
consumer's virtual account. "Express redemption site" includes
bag-drop systems, reverse vending machines, or other beverage
container collection mechanisms to enhance convenience and
accessibility for consumers.
"Full-service redemption site" means a return point where
individuals may return covered beverage containers to receive
immediate refunds for their returns.
"Independent auditor" means an independent certified
public accountant with an active license that is:
(1) retained by a producer responsibility
organization;
(2) not otherwise employed by or affiliated with a
producer responsibility organization; and
(3) qualified to conduct an audit under State law.
"Infrastructure investment" means an investment by a
packaging producer responsibility organization that funds:
(1) equipment or facilities in which covered materials
are prepared for reuse, recycling, or composting;
(2) equipment or facilities used for source reduction,
reuse, recycling, or composting of covered materials; or

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(3) the expansion or strengthening of demand for and
use of covered materials by responsible markets in the
State or region.
"Introduce" means to sell, offer for sale, distribute, or
use to ship a product within or into this State.
"Living wage" means the minimum hourly wage necessary to
allow a person working 40 hours per week to afford basic needs.
"Lobby" or "lobbying" means the practice of promoting,
opposing, or in any manner influencing or attempting to
influence the introduction, defeat, or enactment of
legislation before any legislative body; opposing or in any
manner influencing the executive approval, veto, or amendment
of legislation; or the practice of promoting, opposing, or in
any manner influencing or attempting to influence the
enactment, promulgation, modification, or deletion of
regulations before any regulatory body. The term does not
include providing public testimony before a legislative body
or regulatory body or any committee of a legislative or
regulatory body.
"Local government" means a county, city, or town,
including any municipal corporation, quasi-municipal
corporation, or special purpose district, or any office,
department, division, bureau, board, commission, or agency
thereof, or other local public agency.
"Low-income" means a household at or below 80% of the
median income level for a given county as determined annually

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by the U.S. Department of Housing and Urban Development.
"Material recovery facility" means a facility in the State
that collects, compacts, repackages, sorts, or processes for
transport source-separated material for the purpose of
recycling.
"Minority" means a person who is any of the following:
(1) American Indian or Alaska Native (a person having
origins in any of the original peoples of North and South
America, including Central America, and who maintains
tribal affiliation or community attachment).
(2) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or the
Indian subcontinent, including, but not limited to,
Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
the Philippine Islands, Thailand, and Vietnam).
(3) Black or African American (a person having origins
in any of the black racial groups of Africa).
(4) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race).
(5) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands).
"Needs assessment" means the most recently completed needs
assessment conducted under this Act.
"Packaging" means a material type, such as paper, plastic,

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glass, metal, or multi-material, that is used to protect,
contain, transport, or serve a product.
"Packaging manufacturer" means any person, firm,
association, partnership, or corporation that produces
packaging or a packaging component of covered beverage
containers.
"Packaging producer program plan" means a program plan
developed by the packaging producer responsibility
organization that is prepared and submitted to the Agency for
review and approval.
"Packaging producer responsibility organization" means a
nonprofit corporation that is tax-exempt under Section
501(c)(3) of the federal Internal Revenue Code and that is
created by a group of producers to implement the non-recycling
refund activities under this Act.
"Packaging program" means a program where producers of
covered materials not in the recycling refund program pay a
fee to meet certain performance targets.
"Packaging program advisory board" means the packaging
program advisory board established under this Act.
"Paper product" means a product made primarily from wood
pulp or other cellulosic fibers but does not include bound
books or products that recycling or composting facilities will
not accept because of the unsafe or unsanitary nature of the
paper product. "Paper product" does not include exempt
materials.

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"Postconsumer recycled content" means the amount of
postconsumer material used by a producer in the production of
a covered materials type, divided by the total amount of that
covered materials type used for products sold or distributed
by the producer in that same calendar year.
"Producer" means the following person responsible for
compliance with requirements under this Act for an item sold,
offered for sale, or distributed in or into this State:
(1) for an item sold in or with packaging at a physical
retail location in this State:
(A) if the item is sold in or with packaging that
includes a brand, the producer is the brand owner;
(B) if there is no person or entity described in
subparagraph (A) of this paragraph (1), the producer
is the person or entity that is licensed to sell, offer
for sale, or distribute to consumers in the State an
item under the brand or trademark used in a commercial
enterprise, sold, offered for sale, or distributed in
or into this State, whether or not the trademark is
registered in this State;
(C) if there is no person to which subparagraph
(A) or (B) of this paragraph (1) applies, the producer
is the person that is licensed to manufacture and sell
or offer for sale to consumers in this State an item
under the brand or trademark of another manufacturer
or person;

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(D) if there is no person described in
subparagraph (A), (B), or (C) of this paragraph (1)
within the United States, the producer is the person
who is the importer of record for the item into the
United States for use in a commercial enterprise that
sells, offers for sale, or distributes the item in
this State; or
(E) if there is no person described in
subparagraph (A), (B), (C), or (D) of this paragraph
(1), the producer is the person that first distributes
the item in or into this State;
(2) for items sold or distributed in or into this
State via ecommerce, remote sale, or remote distribution:
(A) for packaging used to directly protect or
contain the item, the producer of the packaging is the
same as the producer identified under paragraph (1);
and
(B) for packaging used to ship the item to a
consumer, the producer of the packaging is the person
that packages the item to be shipped to the consumer;
(3) for packaging that is an item and is not included
in paragraphs (1) and (2), the producer of the packaging
is the person that first distributes the item in or into
this State;
(4) a person is the producer of an item or covered
product sold, offered for sale, or distributed in or into

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this State, as defined in paragraphs (1) through (3),
except where a private label producer has mutually agreed
with a brand owner to accept responsibility as the
producer, and the private label producer has joined a
registered producer responsibility organization as the
responsible producer for that item; if a private label
producer accepts responsibility as the producer, the brand
owner must provide written certification of that
contractual agreement to the producer responsibility
organization; and
(5) if the producer described in paragraphs (1)
through (4) is a business operated wholly or in part as a
franchise, the producer is the franchisor, if that
franchisor has franchisees that have a commercial presence
within the State.
"Producer" does not include:
(1) government entities; or
(2) registered 501(c)(3) charitable organizations and
501(c)(4) social welfare organizations.
"Producer responsibility organization" means an
organization set up to carry out the responsibilities of
either the packaging program or the recycling refund program,
or both programs.
"Recycling" means any process by which materials are
collected, separated or processed and returned to the economic
mainstream in the form of raw materials or products.

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"Recycling" does not include:
(1) landfill disposal of packaging or paper products
or the residue resulting from the processing of packaging
or product products at a materials recovery facility;
(2) use as alternative daily cover or any other
beneficial use at a landfill, incinerator, energy recovery
facility, or energy generation facility by means of
combustion; or
(3) final conversion of packaging and paper products
or their components and by-products to a fuel.
"Recycling rate" means the amount of recyclable covered
material, in aggregate or by individual covered materials
type, recycled in a calendar year divided by the total amount
of recyclable covered material, in aggregate or by individual
covered materials type, sold or distributed into the State by
the relevant unit of measurement in the approved program plan.
"Recycling refund" means a covered beverage container
redemption program that pays a per-unit refund value to
persons for covered beverage containers and collects and
processes covered beverage containers as described in this
Act.
"Recycling refund advisory board" means the recycling
refund advisory board established under this Act.
"Recycling refund processing facility" means a location
that is designated by the recycling refund producer
responsibility organization to receive, sort, and prepare

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beverage containers collected through the system for recycling
or reuse.
"Recycling refund producer responsibility organization"
means a nonprofit corporation that is tax-exempt under Section
501(c)(3) of the federal Internal Revenue Code created by a
group of recycling refund covered beverage containers
producers to implement activities under this Act.
"Recycling refund program plan" means a program plan
developed by the recycling refund producer responsibility
organization that is prepared and submitted to the Agency for
review and approval.
"Redemption rate" means the number of covered beverage
containers redeemed for the recycling refund divided by the
number of covered beverage containers sold in the State in a
calendar year. Covered beverage containers transferred by
material recovery facilities to additional materials
processing or end-markets are not included in the calculation
of covered beverage containers redeemed for the recycling
refund.
"Redemption site" means a public or private place that
provides the ability to redeem a covered beverage container
for which a deposit was paid.
"Responsible market" means a materials market that:
(1) reuses, recycles, composts, or otherwise recovers
materials and disposes of contaminants in a manner that
protects the environment and minimizes risks to public

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health and worker health and safety;
(2) complies with all applicable federal, State, and
local statutes, rules, ordinances, and other laws
governing environmental, health, safety, and financial
responsibility;
(3) possesses all requisite licenses and permits
required by a federal or State agency or political
subdivision;
(4) if the market operates in the State, manages waste
according to the waste management goal and priority order
of waste management practices stated in statute; and
(5) minimizes adverse impacts to environmental justice
areas.
"Retail establishment" means any person, corporation,
partnership, business, facility, vendor, organization, or
individual that sells or provides merchandise, goods, or
materials directly to a consumer that engages in the sale of
beverages that are covered beverage containers and are
intended for consumption off-site.
"Return rate" means the amount of reusable covered
material, in aggregate or by individual covered materials
type, collected for reuse by a producer or service provider in
a calendar year, divided by the total amount of reusable
covered material, in aggregate or by individual covered
materials type, sold or distributed into the State by the
relevant unit of measurement in the approved program plan.

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"Reusable" means capable of reuse.
"Reuse" means the return of a covered material to the
marketplace and the continued use of the covered material by a
producer or service provider when the covered material is:
(1) intentionally designed and marketed to be used
multiple times for its original intended purpose without a
change in form;
(2) designed for durability and maintenance to extend
its useful life and reduce demand for new production of
the covered material;
(3) supported by adequate logistics and infrastructure
at a retail location, by a service provider, or on behalf
of or by a producer, that provides convenient access for
consumers; and
(4) compliant with all applicable federal, State, and
local statutes, rules, ordinances, and other laws
governing health and safety.
"Reuse rate" means the share of units of a reusable
covered material sold or distributed into the State in a
calendar year that are demonstrated and deemed reusable in
accordance with an approved producer responsibility plan.
"Service provider" means an entity that provides covered
services for covered materials. "Service provider" includes a
political subdivision that provides or that contracts or
otherwise arranges with another party to provide covered
services for covered materials within its jurisdiction,

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regardless of whether it provided, contracted for, or
otherwise arranged for similar services before the approval of
the applicable producer responsibility plan.
"Source reduction" means the design, manufacture,
acquisition, purchase, or use of materials or products to
reduce the amount of municipal waste before it enters the
municipal waste stream. This may be accomplished through the
redesign of manufacturing processes; redesign of products;
changes in consumers' purchasing decisions, use, and disposal
habits; and backyard composting.
"Third-party certification" means certification by an
accredited independent organization that a standard or process
required by this Act, or by a packaging producer program plan
or a recycling refund program plan approved under this Act,
has been achieved.
Section 10. Registration of producer responsibility
organizations and service providers.
(a) The annual registration of producer responsibility
organizations and service providers shall be as follows:
(1) By April 1, 2026, producers must appoint:
(A) a packaging producer responsibility
organization and a recycling refund producer
responsibility organization, or
(B) a single producer responsibility organization
with (i) governance to separately implement the

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packaging producer program plan and the recycling
refund program plan in a coordinated manner, and (ii)
all the responsibilities under this Act of the
packaging producer responsibility organization and the
recycling refund producer responsibility organization.
(2) Both the packaging producer responsibility
organization and the recycling refund producer
responsibility organization, or the single producer
responsibility organization, must register with the Agency
by July 1, 2026, and each July 1 thereafter, by submitting
the following:
(A) contact information for a person responsible
for implementing an approved program plan;
(B) a list of all member producers that have
entered into written agreements to operate under an
approved program plan administered by a registered
producer responsibility organization and, for each
producer, a list of all brands of the producer's
covered materials introduced;
(C) a list of current board members and the
executive director if different from the person
responsible for implementing an approved program plan;
and
(D) documentation demonstrating adequate financial
responsibility and financial controls to ensure proper
management of funds and payment of the registration

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fee required under this Section.
(b) The registration fee for producer responsibility
organizations and service providers shall be as follows:
(1) By November 1, 2026, a packaging producer
responsibility organization and a recycling refund
producer responsibility organization must submit a
one-time payment to the Agency, in lieu of a 2027
registration fee, in an amount determined by the Agency
and communicated to each producer responsibility
organization at least 60 days prior to the deadline for
this initial payment, to cover the previously incurred
costs and future estimated costs of the Agency under this
Act from the effective date of this Act through the paying
of the annual registration fee required in paragraph (2).
(2) Beginning January 1, 2028, as part of its annual
registration with the Agency, a packaging producer
responsibility organization and recycling refund producer
responsibility organization must submit to the Agency a
registration fee, as determined by the Agency. By
September 1, 2027, and each September 1 thereafter, the
Agency must provide written notice to registered producer
responsibility organizations in writing of the amount of
the registration fee. If there are 2 or more producer
responsibility organizations implementing the recycling
refund program plan or the packaging producer program
plan, the coordinating body described in this Section must

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equitably apportion payment of the registration fee
between all registered producer responsibility
organizations managing either program. The registration
fee must be set at an amount anticipated to in the
aggregate meet but not exceed the Agency's estimate of the
costs required to perform the Agency's duties as described
in this Act and to otherwise administer, implement, and
enforce this Act for the 12 months after the registration
date.
(3) The Agency must annually reconcile the fees paid
by a producer responsibility organization under this
subdivision with the actual costs incurred by the agency
by means of credits or refunds to or additional payments
required of a producer responsibility organization, as
applicable.
(c) After the first packaging producer responsibility plan
approved by the agency expires, the Agency may allow
registration of more than one packaging producer
responsibility organization if:
(1) producers of a covered materials type or a
specific covered material appoint a packaging producer
responsibility organization; or
(2) producers organize under additional packaging
producer responsibility organizations.
(d) All fees received under this Section must be deposited
in the Product Producer Responsibility Program Fund under this

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Act.
Section 15. Packaging producer responsibility organization
duties. A packaging producer responsibility organization must:
(1) register with the Agency and pay the required fees
to the Agency, as provided under this Act;
(2) submit a producer responsibility plan to the
Agency as required under this Act;
(3) implement producer responsibility plans as
required under this Act;
(4) forward upon receipt from the Agency the lists
established under this Act to all service providers that
participate in a packaging producer responsibility plan
administered by the packaging producer responsibility
organization;
(5) establish, by September 1, 2026, an initial
producer fee structure to fund the initial implementation
of the program, to be used until the packaging producer
responsibility organization has an approved program plan
as required under this Act;
(6) collect producer fees;
(7) submit the reports required under this Act;
(8) ensure that producers operating under a packaging
producer responsibility plan administered by the packaging
producer responsibility organization comply with the
requirements of the packaging producer responsibility plan

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and with this Act;
(9) expel a producer from the packaging producer
responsibility organization if efforts to return the
producer to compliance with the plan or with the
requirements of this Act are unsuccessful;
(10) notify the Agency when a producer has been
expelled;
(11) consider and respond within 90 days in writing to
comments received from an advisory board, including
justifications for not incorporating advisory board
recommendations;
(12) maintain a website with the information required
under this Act;
(13) notify the Agency within 30 days of a change made
to the contact information for a person responsible for
implementing the packaging producer responsibility plan,
to board membership, or to the executive director;
(14) assist service providers to identify and use
responsible markets;
(15) contract directly with service providers and
provide payments in a timely manner; and
(16) comply with all other applicable requirements of
this Act.
Section 20. Recycling refund producer responsibility
organization duties. A recycling refund producer

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responsibility organization must:
(1) register with the Agency;
(2) submit a recycling refund producer plan;
(3) implement recycling refund producer plans;
(4) collect producer fees;
(5) establish, by September 1, 2026, an initial
producer fee structure to fund the initial implementation
of the program, to be used until the recycling refund
producer responsibility organization has an approved
program plan as required under this Act;
(6) submit the reports required under this Act;
(7) ensure that producers operating under a recycling
refund program plan administered by the recycling refund
producer responsibility organization comply with the
requirements of the recycling refund program plan and with
this Act;
(8) expel a producer from the recycling refund
producer responsibility organization if efforts to return
the producer to compliance with the plan or with the
requirements of this Act are unsuccessful;
(9) notify the Agency when a producer has been
expelled;
(10) consider and respond within 90 days in writing to
comments received from an advisory board, including
justifications for not incorporating board
recommendations;

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(11) maintain a website with the information required
under this Act;
(12) notify the Agency within 30 days of a change made
to the contact information for a person responsible for
implementing the recycling refund producer responsibility
plan, to board membership, or to the executive director;
(13) contract directly with service providers and
provide payments in a timely manner; and
(14) comply with all other applicable requirements of
this Act.
Section 25. Advisory boards.
(a) The advisory boards are established as follows:
(1) The packaging program advisory board is
established to review all activities conducted by
packaging producer responsibility organizations under this
Act and to advise the Agency and packaging producer
responsibility organizations regarding the implementation
of this Act.
(2) The recycling refund advisory board is established
to review all activities conducted by recycling refund
producer responsibility organizations under this Act and
to advise the Agency and recycling refund producer
responsibility organizations regarding the implementation
of this Act.
(b) The duties of the advisory boards are as follows:

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(1) The packaging program advisory board shall:
(A) convene its initial meeting by January 1,
2027;
(B) consult with the Agency regarding the scope of
the needs assessments and provide written comments on
needs assessments;
(C) advise on the development of packaging
producer responsibility plans and amendments to
packaging producer responsibility plans;
(D) submit comments to packaging producer
responsibility organizations and to the Agency on any
matter relevant to the administration of this Act;
(E) provide written comments to the Agency during
any rulemaking process undertaken by the Agency; and
(F) comply with all other applicable requirements
of this Act.
(2) The recycling refund advisory board shall:
(A) convene its initial meeting by January 1,
2027;
(B) review the recycling refund program plan and
provide comments to the recycling refund producer
responsibility organization, prior to the draft being
issued as an official draft for public comment;
(C) review program reports and audits and raise
issues for recycling refund producer responsibility
organization follow-up or agency enforcement action;

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(D) review annual reports and provide comments to
the Agency; and
(E) ensure that the recycling refund producer
responsibility organization and Agency are considering
a broad range of perspectives in developing recycling
refund program plans and in implementing programs.
(c) The membership of the advisory boards are as follows:
(1) By August 1, 2026, the Director of the Agency must
establish and appoint the initial membership of the
packaging program advisory board. The membership of the
packaging program advisory board must consist of the
following:
(A) 2 members representing manufacturers of
covered materials or a statewide or national trade
association representing those manufacturers;
(B) 2 members representing recycling facilities
that manage covered materials;
(C) one member representing a waste hauler or a
statewide association representing waste haulers;
(D) one member representing retailers of covered
materials or a statewide trade association
representing those retailers;
(E) one member representing a statewide nonprofit
environmental organization;
(F) one member representing a community-based
nonprofit environmental justice organization;

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(G) one member representing a waste facility that
receives and sorts covered materials and transfers
them to another facility for reuse, recycling, or
composting;
(H) one member representing a waste facility that
receives compostable materials for composting or a
statewide trade association that represents such
facilities;
(I) 2 members representing an entity that develops
or offers for sale covered materials that are designed
for reuse or refill and maintained through a reuse or
refill system or infrastructure or a statewide or
national trade association that represents such
entities;
(J) 3 members representing organizations of
political subdivisions, with at least one member
representing a political subdivision outside the
metropolitan area;
(K) 2 members representing other interested
parties or additional members of interests under this
paragraph (1) as determined by the Agency; and
(L) one member representing the Agency.
(2) By August 1, 2026, the Director of the Agency must
establish and appoint the initial membership of the
recycling refund advisory board. The membership of the
recycling refund advisory board must consist of

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representatives of the following:
(A) one member representing local government;
(B) one member representing a retailer that offers
collection opportunities;
(C) one member representing a packaging
manufacturer that is not a producer;
(D) one member representing a processor;
(E) one member representing an environmental
nonprofit organization;
(F) one member representing an environmental
justice organization or organization that represents
individual collectors;
(G) one member who is a canner or represents a
canner organization; and
(H) 2 members representing other interested
parties or additional members of interests represented
under this paragraph (2) as determined by the Agency.
(3) In making appointments under this Section, the
Agency:
(A) may not appoint members who are members of the
General Assembly or registered lobbyists;
(B) may not appoint members who are employees of a
producer required to be members of a producer
responsibility organization in this State under this
Act; and
(C) must endeavor to appoint members from all

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regions of the State.
(4) A chair shall be elected by majority vote of
present members at the first meeting of each year at which
a quorum is present.
(d) Members serve for a term of 4 years, except that the
initial term for a majority of the initial appointees must be 2
years so that membership terms are staggered. Members may be
reappointed but may not serve more than 8 consecutive years. A
member of an advisory board appointed to represent the Agency
serves at the pleasure of the Agency. The chair shall be
elected from among the members by a majority of its members.
(e) The presence of a majority of appointed advisory board
members constitutes a quorum. Action by an advisory board
requires a quorum and a majority of those present and voting.
All members of an advisory board, except a member of an
advisory board appointed to represent the Agency, are voting
members of the board.
(f) Each advisory board must meet at least 2 times per year
and may meet more frequently upon 10 days' written notice at
the request of the chair or a majority of its members.
(g) The Agency must provide administrative and operating
support to each advisory board, and the Agency may contract
with a third-party facilitator to assist in administering the
activities of each advisory board, including establishing a
website or landing page on the Agency website.
(h) An advisory board member must disclose any instance of

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actual or perceived conflicts of interest at each meeting of
the advisory board at which recommendations regarding producer
responsibility plans, programs, operations, or activities are
made by an advisory board.
Section 30. Packaging producer responsibilities.
(a) Beginning August 1, 2026, a producer must be a member
of one or more of the following for the covered materials it
produces:
(1) a packaging producer responsibility organization;
(2) a recycling refund producer responsibility
organization registered in this State; or
(3) the single producer responsibility organization
managing the packaging program and recycling refund
program.
(b) A producer must:
(1) implement the requirements of the packaging
producer responsibility plan and recycling refund producer
responsibility plan under which the producer operates;
(2) pay producer fees under this Act;
(3) provide necessary information for covered
materials to the packaging producer responsibility
organization and the recycling refund producer
responsibility organization at a frequency to be
determined by the producer responsibility organization;
and

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(4) comply with all other applicable requirements of
this Act.
Section 35. Introduction and sales restrictions.
(a) Packaging producer restrictions are as follows:
(1) Beginning January 1, 2030, no producer may sell in
the State covered materials, either separately or when
used to package another product, unless the producer
enters into a written agreement with a packaging producer
responsibility organization to operate under an approved
packaging producer responsibility plan.
(2) Beginning January 1, 2033, no producer may sell in
the State covered materials unless covered services are
provided for the covered materials through a program in a
packaging producer responsibility plan approved by the
Agency, and the covered materials are:
(1) reusable and capable of being managed through
a reuse system that meets the reuse rate and return
rate required under this Act;
(2) included on the recyclable covered materials
list established under this Act; or
(3) included on the compostable covered material
list established under this Act.
(3) A packaging producer responsibility organization
may petition the Agency for a 2-year extension to comply
with the requirements of paragraph (2). The Agency may

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approve the extension if the petition demonstrates that
market or technical issues prevent a specific covered
material from being considered reusable or included on the
lists established under this Act. The packaging producer
responsibility organization may petition the Agency for
additional annual extensions if the packaging producer
responsibility organization demonstrates that market or
technical issues preventing compliance persist.
(b) A person may not sell or distribute in or into the
State a covered beverage container of a producer that is not
participating in a recycling refund producer responsibility
organization or that is not in compliance with the
requirements of this Act or rules adopted under this Act.
Section 40. Service providers.
(a) A packaging producer responsibility organization or a
recycling refund producer responsibility organization must
require in a contract with a service provider that the service
provider:
(1) meet performance standards established in an
approved producer responsibility plan under this Act;
(2) ensure that covered materials are sent to
responsible markets; and
(3) provide documentation to the recycling refund
producer responsibility organization and packaging
producer responsibility organization on the amounts,

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covered materials types, and volumes of covered materials
by covered service method.
(b) Bidding processes and ownership ability requirements
are as follows:
(1) For infrastructure investments included in an
approved packaging producer responsibility plan, a
packaging producer responsibility organization or a
recycling refund producer responsibility organization must
use the competitive bidding processes and publicly post
bid opportunities, except that preference must be given to
existing facilities, providers of services, and holders of
service accounts in the State for source reduction, reuse,
collection, recycling, and composting of covered
materials.
(2) No packaging producer responsibility organization
or recycling refund producer responsibility organization
may own or partially own infrastructure that is used to
fulfill obligations under this Act, except in the
following circumstances:
(A) a producer may hold an ownership stake in
infrastructure used to fulfill obligations under this
Act so long as the stake was held before enactment of
this Act and the ownership stake is fully disclosed by
the producer to the packaging producer responsibility
organization; or
(B) after a bidding process described in paragraph

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(1) under which no service provider bids on the
contract, the packaging producer responsibility
organization or the recycling refund producer
responsibility organization may make infrastructure
investments identified under an approved packaging
producer responsibility plan or recycling refund
program plan to implement the requirements in this
Act.
(c) Contracting rate requirements are as follows:
(1) The packaging producer responsibility organization
shall directly contract to pay 100% of covered services
for covered materials, exclusive of exempt materials. The
methodology for contract rates must consider estimated
revenue received by service providers from the sale of
covered materials based upon relevant material indices and
incorporate relevant cost information identified by the
needs assessment. Contract rates must be annually updated
and reflect the net costs for covered services for covered
materials from covered entities, at a minimum.
(2) Contract rates must be based on the following, as
applicable by the service provided:
(A) the cost to collect covered material for
recycling, a proportional share of composting, or
reuse adjusted to reflect conditions that affect those
costs, varied by region or jurisdiction in which the
covered services are provided, including, but not

HB4064 - 37 - LRB104 13702 WRO 26387 b
limited to:
(i) the number and type of covered entities;
(ii) the population density;
(iii) the collections methods employed;
(iv) the distance traveled by collection
vehicles to consolidation or transfer facilities;
to reuse, recycling, or composting facilities; and
to responsible markets;
(v) other factors that may contribute to
regional or jurisdictional cost differences;
(vi) the proportion of covered compostable
materials within all source-separated compostable
materials collected or managed through composting;
and
(vii) the general quality of covered materials
collected by service providers;
(B) the cost to transfer collected covered
materials from consolidation or transfer facilities to
reuse, processing, recycling, or composting facilities
or to responsible markets;
(C) the cost to:
(i) sort and process covered materials for
sale or use and remove contamination from covered
materials by a recycling or composting facility,
less the average fair market value for that
covered material based on market indices for the

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region; and
(ii) manage contamination removed from
collected covered material;
(D) the administrative costs of service providers,
including education, public awareness campaigns, and
outreach program costs as applicable; and
(E) the costs of covered services for a reuse
system or covered services provided for reusable
covered materials and management of contamination.
(3) A service provider retains all revenue from the
sale of covered materials. Nothing in this Act may
restrict a service provider from charging a fee for
covered services of covered materials to the extent that
payment from a packaging producer responsibility
organization does not cover all costs of services,
including continued investment and innovation in
operations, operating profits, and returns on investments
required by a service provider to provide sustainability
of the services.
(4) Contract rates may be calculated per ton, by
household, or by another unit of measurement under an
approved producer responsibility plan.
(d) A producer responsibility organization or a recycling
refund producer responsibility organization must establish a
dispute resolution process utilizing third-party mediators for
disputes related to payments.

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Section 45. Agency responsibilities. The Agency must:
(1) appoint the initial membership of the advisory
boards as required under this Act;
(2) provide administrative and operating support to
the advisory board;
(3) consult on the initial needs assessment and needs
assessment updates that the packaging producer
responsibility organization conducts, and modify
requirements for needs assessments as it deems
appropriate;
(4) review and determine whether to approve producer
responsibility plans and amendments to producer
responsibility plans;
(5) by January 1, 2028, develop a list of covered
materials determined to be recyclable or compostable
statewide through systems in which covered materials are
commingled into a recyclables stream and a separate
compostables stream; these covered materials must be
collected at an optimal level of service and convenience
for covered entities, at a minimum, wherever collection
services for mixed municipal solid waste are available;
(6) by January 1, 2028, develop:
(A) a list of covered materials determined to be
recyclable or compostable and collected statewide
through systems other than the system required for

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covered materials on the list established in paragraph
(5); and
(B) a list of exempt materials pursuant to federal
or State health and safety requirements with respect
to the materials or packaging being source reduced or
made reusable, recyclable, or compostable;
(6) in developing the lists under subparagraphs (A)
and (B) of paragraph (5), the following criteria are to be
used:
(A) current availability of recycling and
composting collection services;
(B) recycling and composting processing
infrastructure;
(C) capacity and technology for sorting covered
materials;
(D) whether a covered material is of a type and
form that is regularly sorted and aggregated into
defined streams for recycling processes or is included
in a relevant Institute of Scrap Recycling Industries
specification or its successors;
(E) availability of responsible markets;
(F) presence and amount of processing residuals
and contamination;
(G) quantity of covered material estimated to be
available and recoverable;
(H) projected future conditions for the criteria

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in subparagraphs (A) through (G); and
(I) other criteria or factors, as determined by
the Agency;
(7) post on the Agency's website:
(A) the most recent registration materials
submitted by the producer responsibility
organizations;
(B) a list of registered service providers;
(C) the most recent packaging program needs
assessments;
(D) any packaging plan or amendment submitted by a
packaging producer responsibility organization that is
in draft form during the public comment period;
(E) the most recent recyclable or compostable
covered lists established as required under this Act;
(F) the list of exempt materials as defined in
this Act and covered materials exempt from performance
targets as approved in the producer responsibility
plan;
(G) links to producer responsibility organization
websites;
(H) comments of the public, advisory board, and
producer responsibility organizations on packaging
producer plans and needs assessments, and, if any, the
responses of the Agency to those comments; and
(I) links to adopted rules implementing this Act;

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and
(8) review and determine whether to approve the
selection of independent auditors to perform an annual
financial audit of each producer responsibility
organization.
Section 50. Packaging program needs assessments.
(a) Needs assessments are required as follows:
(1) By January 1, 2028, the packaging producer
responsibility organization must complete any
supplementary work to the needs assessment completed under
Public Act 103-0383 such that the packaging producer
responsibility organization has all information listed in
subsection (b).
(2) By January 1, 2033, the packaging producer
responsibility organization must provide an updated needs
assessment every 5 years thereafter.
(3) The Agency may modify what the packaging producer
responsibility organization is required to include in any
required needs assessments.
(b) An initial needs assessment shall include:
(1) identification of currently or recently introduced
covered materials and covered materials types;
(2) tons of collected covered materials;
(3) the characteristics of recycling and composting
programs, including a description of single-stream and

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dual-stream recycling systems offered in the State and
prevalence of their use, average frequency of collection
of covered materials for recycling and composting, types
of collection containers used, commonly accepted materials
for recycling and composting, and total costs by type of
covered entity;
(4) processing capacity at recycling facilities,
including total tons processed and sold, composition of
tons processed and sold, current technologies utilized,
and facility processing fees charged to collectors
delivering covered materials for recycling;
(5) capacity of, technology used by, and
characteristics of compost facilities to process and
recover compostable covered materials;
(6) capacity and number of drop-off collection sites;
(7) capacity and number of transfer stations and
transfer locations;
(8) average term length of residential recycling and
composting collection contracts issued by political
subdivisions and an assessment of contract cost
structures;
(9) an estimate of total annual collection and
processing service costs based on registered service
provider costs;
(10) available markets in the State for covered
materials and the capacity of those markets; and

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(11) covered materials sales by volume, weight, and
covered materials types introduced by producers.
(c) All subsequent needs assessment updates must include
at least the following:
(1) an evaluation of:
(A) existing source reduction, reuse, recycling,
and composting, as applicable, for each covered
materials type, including collection rates, recycling
rates, composting rates, reuse rates, and return
rates, as applicable, for each covered materials type;
(B) overall recycling rate, composting rate, reuse
rate, and return rate for all covered materials; and
(C) the extent to which postconsumer recycled
content, by the best estimate, is or could be
incorporated into each covered materials type, as
applicable, including a review of market and technical
barriers to incorporating postconsumer materials into
covered materials and of whether for certain covered
materials more recycled content has a net negative
environmental impact;
(2) an evaluation of covered materials in the
disposal, recycling, and composting streams to determine
the covered materials types and amounts within each
stream, using new studies conducted by the Agency or
publicly available and applicable studies;
(3) proposals for reuse, recycling, composting rates

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for each covered materials type that could reasonably be
accomplished within a 5-year time frame in multiple units
of measurement, including, but not limited to, unit-based,
weight-based, and volume-based;
(4) recommended collection methods by covered
materials type to maximize collection efficiency, maximize
feedstock quality, and optimize service and convenience
for collection of covered materials to be considered or
that are included on lists established under this Act;
(5) proposed plans and metrics for how to measure
progress in achieving performance targets;
(6) an inventory of the current system, including: (i)
infrastructure, capacity, performance for the existing
covered services for covered materials operating in the
State; (ii) availability and cost of covered services for
covered materials to covered entities and any other
location where covered materials are introduced, including
identification of disparities in the availability of these
services in environmental justice areas compared with
other areas and proposals for reducing or eliminating
those disparities;
(7) an evaluation of investments needed to increase
source reduction, reuse, recycling, and composting rates
of covered materials to meet the proposed performance
targets in this Act;
(8) an assessment of the viability and robustness of

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markets for recyclable covered materials and the degree to
which these markets can be considered responsible markets;
(9) an assessment of the level and causes of
contamination of source-separated recyclable materials,
source-separated compostable materials and collected
reusables, and the impacts of contamination on service
providers, including the cost to manage this
contamination; and
(10) recommendations for meeting the criteria for an
alternative collection program as established under this
Act, and in every subsequent needs assessment after the
initial needs assessment, a review of existing alternative
collection programs for each covered material listed to
determine if the program is meeting the criteria under
this Act.
(d) In conducting a needs assessment, the packaging
producer responsibility organization must:
(1) initiate a consultation process to obtain
recommendations from the advisory board, political
subdivisions, service providers and other interested
parties regarding the type and scope of information that
should be collected and analyzed in the needs assessment
required by this Section;
(2) contract with a third party who is not a producer,
a packaging producer responsibility organization, or a
member of the advisory board to conduct the needs

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assessment; and
(3) prior to finalizing the needs assessment, make the
draft needs assessment available for comment by the
advisory board, the Agency, and the public.
(e) Data requirements shall be as follows:
(1) A service provider or other person with data or
information necessary to complete a needs assessment must
provide the data or information to the packaging producer
responsibility organization contractor conducting the
needs assessment upon request.
(2) The packaging producer responsibility organization
contractor conducting the needs assessment must aggregate
and anonymize the data or information, excluding location
data necessary to assess needs, received from all parties
under this Section.
Section 55. Packaging producer program plan.
(a) By January 1, 2029, and every 5 years thereafter, a
packaging producer responsibility organization must submit a
packaging producer program plan to the Agency that describes
the proposed operation by the organization of programs to
fulfill the requirements of this Act and that incorporates the
findings and results of needs assessments. If there is more
than one packaging producer responsibility organization, they
must coordinate to submit a single packaging producer program
plan. Once approved, a packaging producer program plan remains

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in effect for 5 years, as amended, or until a subsequent
packaging producer program plan is approved.
(b) The first packaging producer program plan must be
implemented by January 1, 2030; subsequent recycling refund
program plans must be implemented within 6 months of approval
by the Agency.
(c) A packaging producer responsibility organization must
submit a draft packaging producer program plan or draft
amendment to the advisory board prior to submitting the draft
plan or draft amendment to the Agency and must, prior to
submission of the draft plan or draft amendment to the Agency,
respond to advisory board comments and recommendations
received within 60 days of providing the draft program plan or
draft amendment to the advisory board and indicate whether
those comments or recommendations were accepted or rejected.
(d) A draft packaging producer program plan must include,
at a minimum:
(1) performance targets established under this Act as
applicable to each covered materials type to be
accomplished within a 5-year period;
(2) proposed performance targets for reuse that are
informed by the latest needs assessment, and the reuse
performance target shall increase with each program plan;
(3) proposed performance targets for postconsumer
recycled content for covered materials, including paper
products, glass, metal, and plastic, that are informed by

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the latest needs assessment, consider technical barriers,
and consider health and safety requirements;
(4) a description of the methods of collection, how
collection service convenience metrics will be met, and
processing infrastructure and covered services to be used
for each covered materials type at covered entities, at a
minimum, and how these will meet the performance targets
established for covered materials:
(A) included on the recyclable list established in
this Act;
(B) included on the compostable list established
in this Act;
(C) that are reusable covered materials managed
through a reuse system.
(5) proposals for exemptions from performance targets
for covered materials that cannot be source reduced or
made reusable, recyclable, or compostable due to federal
or State health and safety requirements, identifying the
specific federal or State requirements and their impact on
the covered materials;
(6) a description of how, for each covered materials
type, the producer responsibility organization will
measure recycling, reuse, composting, and the inclusion of
postconsumer recycled content, including the relevant unit
of measurement;
(7) third-party certifications as required by the

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Agency or voluntarily undertaken;
(8) a budget identifying funding needs for each of the
plan's 5 calendar years, producer fees, a description of
the process used to calculate the fees, and an explanation
of how the fees meet the requirements of this Act;
(9) a description of infrastructure investments,
including goals and outcomes and a description of how the
process to offer and select opportunities will be
conducted in an open, competitive, and fair manner; how it
will address gaps in the system not met by service
providers; and potential financial and legal instruments
to be used;
(10) an explanation of how the program will be paid
for by the producer responsibility organization through
fees from producers, without any new or additional
consumer-facing fee to members of the public, businesses,
service providers, the State or any political
subdivisions, or any other person who is not a producer,
unless the fee is:
(A) a deposit made in connection with a product's
reuse, or recycling that can be redeemed by a
consumer; or
(B) a charge for service by a service provider,
regardless of whether registered;
(11) a description of activities to be undertaken by
the producer responsibility organization during each year

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to:
(A) foster the improved design of covered
materials under this Act;
(B) provide funding to expand and increase the
convenience of source reduction, reuse, collection,
recycling, and composting services to covered
entities, at a minimum according to the order of the
U.S. Environmental Protection Agency waste management
hierarchy;
(C) provide for contract rates under this Act to
service providers for statewide coverage of covered
services at an optimal level of convenience and
service for covered materials on the list established
in this Act, to covered entities, at a minimum; and
(D) monitor to ensure that postconsumer materials
are delivered to responsible markets;
(11) include terms and conditions for service
agreements with service providers and templates of the
service agreements;
(12) performance standards for service providers as
applicable to the service provided, including, but not
limited to:
(A) accepting all covered materials on the
recyclable or compostable list in this Act;
(B) labor standards and safety practices
including, but not limited to, safety programs, health

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benefits, and living wages; and
(C) meets operating standards, such as capture
rates, residual rates, and bale quality;
(13) a description of how the packaging producer
responsibility organization will treat and protect
nonpublic data submitted by service providers;
(14) a description of how the packaging producer
responsibility organization will provide technical
assistance to service providers in order to assist them in
delivering covered materials to responsible markets;
(15) a description of how the packaging producer
responsibility organization will increase public
awareness, educate, and complete outreach activities that
include culturally responsive materials and methods and
evaluate the efficacy of these efforts;
(16) proposed alternative collection programs;
(17) a description of how producers can purchase
postconsumer materials from service providers at market
prices if the producer is interested in obtaining recycled
feedstock to achieve minimum postconsumer recycled content
performance targets;
(18) a summary of consultations held with the advisory
board and other interested parties to provide input to the
producer responsibility plan, a list of recommendations
that were incorporated into the producer responsibility
plan as a result, and a list of rejected recommendations

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and the reasons for rejection;
(e) The packaging producer responsibility organization may
at any time submit an amendment request to the agency
regarding the lists in paragraph 5 of Section 45.
Section 60. Recycling refund program plan.
(a) By January 1, 2028, and every 5 years thereafter, a
recycling refund producer responsibility organization must
submit a recycling refund program plan to the Agency that
describes the proposed operation by the organization of the
program to fulfill the requirements of this Act and that
incorporates the findings and results of packaging program
needs assessments conducted under this Act. If there is more
than one recycling refund producer responsibility
organization, they must coordinate to submit a single
recycling refund program plan. Once approved, a recycling
refund program plan remains in effect for 5 years, as amended,
or until a subsequent recycling refund program plan is
approved.
(b) The first recycling refund program plan must be
implemented by January 1, 2029; subsequent recycling refund
program plans must be implemented within 6 months of approval
by the Agency.
(c) A recycling refund producer responsibility
organization must submit a draft recycling refund producer
program plan or draft amendment to the recycling refund

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advisory board prior to submitting the draft plan or draft
amendment to the Agency and must, prior to submission of the
draft plan or draft amendment to the Agency, respond to
recycling refund advisory board comments and recommendations
received within 60 days of providing the draft program plan or
draft amendment to the recycling refund advisory board and
indicate whether those comments or recommendations were
accepted or rejected.
(d) The recycling refund program plan must contain the
following:
(1) a list of the types of covered beverage containers
that will be included in the recycling refund program,
which at a minimum must be beverage containers that are:
(A) bottles and cans made of rigid plastic, glass
bottles, or metal; and
(B) have a capacity between 40 milliliters and one
gallon;
(2) proposed targets and deadlines for reuse rates to
be achieved;
(3) a description of the process that will be used by
the recycling refund producer responsibility organization
to meet performance targets for redemption and reuse as
described in this Act;
(4) a description of the metrics that will be used to
measure the performance targets;
(5) a description of how the proposed network of

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redemption sites will:
(A) satisfy the convenience standards and
addresses the evaluation criteria established in this
Act; and
(B) provide sufficient opportunities for consumers
of limited economic means to obtain their applicable
refund value immediately upon redemption;
(6) a description of the process that will be used to
remit to the recycling refund producer responsibility
organization deposits collected from consumers;
(7) a description of the incentives the recycling
refund producer responsibility organization will provide
to retail establishments to encourage them to host covered
beverage container collection mechanisms;
(8) a description of how the program will conduct
outreach and provide convenient redemption:
(A) throughout the State;
(B) in rural, urban, and environmental justice
areas; and
(C) to those persons that redeem relatively large
amounts of covered beverage containers; and
(9) a description of how beverage containers will be
labeled or how consumers will otherwise be made aware of
the beverage containers that are eligible for the
applicable refund value.

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Section 65. Plan and amendment review and approval
procedure. The review and approval procedure for plans and
plan amendments shall be as follows:
(1) The Agency must review and approve, deny, or
request additional information for draft recycling refund
program plans, packaging producer program plans, and draft
plan amendments no later than 120 days after the date of
receipt by the Agency. The Agency must post a draft plan or
draft amendment on the Agency's website and allow public
comment for no less than 45 days before approving,
denying, or requesting additional information on a draft
plan or draft amendment.
(2) If the Agency denies or requests additional
information for a draft plan or draft amendment, the
Agency must provide the recycling refund producer
organization and a producer responsibility organization
with the reasons, in writing, that the plan or plan
amendment does not meet the plan requirements in this Act.
The recycling refund producer organization or a packaging
producer responsibility organization has 60 days from the
date that the rejection or request for additional
information is received to submit to the Agency any
revisions or additional information necessary for the
approval of the draft plan or draft amendment. The Agency
must review and approve or disapprove the draft plan or
draft amendment no later than 60 days after the date the

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Agency receives the revisions or additional information.
(3) A recycling refund producer organization or a
packaging producer responsibility organization may
resubmit a draft plan or draft amendment to the Agency on
not more than 2 occasions. If after the second
resubmission, the Agency determines that the draft plan or
draft amendment does not meet the plan requirements of
this Act, the Agency must modify the draft plan or draft
amendment as necessary for it to meet the requirements of
this Act and approve it.
Section 70. Coordination plan.
(a) The packaging producer responsibility organization and
the recycling refund producer responsibility organization are
to create a coordination plan to ensure that their respective
programs are complementary, operate efficiently, and meet all
targets.
(b) The coordination plan must:
(1) Ensure consistent education and outreach messaging
to consumers;
(2) Ensure that a reciprocal compensation mechanism
exists so that the recycling refund producer
responsibility organization pays the packaging producer
responsibility organization for covered beverage
containers in material recovery facilities, and the
packaging producer responsibility organization pays the

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recycling refund producer responsibility organization for
secondary packaging in the recycling refund system;
(3) Evaluate packages and formats managed by each
program and consider opportunities for adding or moving
packages from one program to the other;
(4) Evaluate opportunities to coordinate
identification of, and efficient access to, processing
infrastructure and markets; and
(5) Identify actions to jointly optimize
infrastructure for reuse programs.
Section 75. Performance targets.
(a) The packaging producer responsibility organization is
to achieve the following performance targets:
(1) After 2 years of program implementation:
(A) A collection rate that is greater than 50%;
and
(B) A recycling rate that is greater than 40%.
(2) After 5 years of program implementation:
(A) A collection rate that is greater than 65%;
and
(B) A recycling rate that is greater than 55%.
(3) Reuse rates of covered materials in an approved
packaging producer program plan under this Act.
(4) Composting rates of covered materials in an
approved packaging producer program plan under this Act.

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(b) The recycling refund producer responsibility
organization must achieve the following performance targets:
(1) By the end of year 2 of the program, the redemption
rate aggregated for all recycling refund covered materials
must be greater than 65%.
(2) By the end of year 5 of the program, the redemption
rate aggregated for all recycling refund covered materials
must be greater than 85%.
(3) Achieve the reuse rate performance target in the
approved recycling refund program plan.
(c) The measurement criteria for performance targets shall
be as follows:
(1) For purposes of determining whether recycling
performance targets are being met, except as modified by
the Agency, the packaging producer responsibility plan
must provide a methodology for measuring the amount of
recycled material at the point at which material leaves a
recycling facility and must account for:
(A) levels of estimated contamination documented
by the facility; and
(B) any exclusions for fuel or energy capture.
(2) For purposes of determining whether reuse
performance targets are being met, a producer
responsibility plan must provide a methodology for
measuring the amount of reusable covered materials at the
point at which reusable covered materials meet the

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following criteria as demonstrated by the producer and
approved by the Agency:
(A) whether the average minimum number of cycles
of reuses within a recognized reuse system has been
met based on the number of times an item must be reused
for it to have lower environmental impacts than the
single-use alternatives of those items; and
(B) whether the demonstrated or research-based
anticipated return rate of the covered material to the
reuse system has been met.
(3) For purposes of determining whether postconsumer
recycled content performance targets are being met, a
producer responsibility plan must provide a methodology
for measuring postconsumer recycled content across all
producers for a covered materials type where producers may
determine their postconsumer recycled content based on
their United States market territory if State-specific
postconsumer recycled content is impractical to determine.
(4) For other performance targets, the producer
responsibility organization must propose methodologies for
review and approval as part of the packaging producer
responsibility plan and recycling refund producer
responsibility plan.
(d) A packaging producer responsibility organization must
implement an alternative collection program for covered
materials included on an alternative collection list

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established under this Act that:
(1) provides year-round, convenient, statewide
collection opportunities, including at least one drop-off
collection site located in each county;
(2) provides tiers of service for collection,
convenience, number of drop-off collection sites, and
additional collection systems based on county population
size and county population density;
(3) ensures materials are sent to responsible markets;
(4) uses education and outreach strategies that can be
expected to significantly increase consumer awareness of
the program throughout the State; and
(5) accurately measures the amount of each covered
material collected and the applicable performance target.
(e) The Agency, in consultation with an advisory board,
may require that a packaging producer responsibility
organization or recycling refund producer responsibility
organization obtain and pay for a third-party certification of
any activity or achievement required by this Act if a
third-party certification is readily available, deemed
applicable, and of reasonable cost. The Agency must provide a
producer responsibility organization with notice of at least 6
months prior to requiring use of third-party certification
under this subsection.
Section 80. Producer fees.

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(a) A packaging producer responsibility organization must
annually collect a fee from each member producer that must:
(1) vary based on the total amount of covered
materials each producer introduces in the prior year
calculated on a per-unit basis, such as per ton, per item,
or another unit of measurement;
(2) reflect the program costs for each covered
materials type, net of commodity value for that covered
materials type, as well as allocated fixed costs that do
not vary based on covered materials type;
(3) create incentives to reduce environmental impacts,
which may include:
(A) reducing the amount of:
(i) packaging per individual covered material
that is necessary to efficiently deliver a product
without damage or spoilage and without reducing
its ability to be recycled; and
(ii) paper used to manufacture individual
paper products;
(B) increasing the amount of covered materials
managed in a reuse system that are reused the number of
times needed to have lower environmental impacts than
the single-use alternatives of those items;
(C) increasing the proportion of postconsumer
material in covered materials while considering
technical limitations and net environmental impact of

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using more postconsumer material; and
(D) enhancing the recyclability or compostability
of a covered material;
(4) discourage using materials and design attributes
in covered materials whose environmental impacts and human
health impacts can be reduced by the methods listed under
paragraph (3); and
(5) generate revenue sufficient to pay in full:
(A) the fee required under this Act;
(B) financial obligations to complete activities
described in an approved packaging producer program
plan including payments to service providers;
(C) the operating costs of the producer
responsibility organization; and
(D) for establishment and maintenance of a
financial reserve that is sufficient to operate the
program in a fiscally prudent and responsible manner.
(b) The recycling refund producer responsibility
organization annual fee requirements shall be as follows:
(1) Costs to pay the registration fee required in this
Act and to meet the performance targets in this Act and
convenience standards in this Act that exceed the amount
retained through scrap value and unclaimed deposits are to
be paid by producers as a material-specific fee that is:
(A) based on the cost to manage the material minus
its scrap value, among other factors;

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(B) modulated based on factors to reduce
environmental impact, which may include:
(i) Use of domestically sourced, verified
postconsumer recycled content;
(ii) Compliance with industry-accepted design
for recyclability standards;
(iii) Use of labeling to encourage appropriate
recycling behaviors;
(iv) Use of design factors that inhibit
recyclability; and
(v) Use of materials that are not on the
statewide recyclable covered materials list.
(2) The recycling refund producer responsibility
organization must institute a flat fee structure for those
beverage producers with less than $2 million in revenue,
or less than one ton of covered beverage container sold in
the State.
(c) Revenue collected under this Section that exceeds the
amount needed to pay the costs described in paragraph (5) of
subsection (a), and subsection (b), must be used to improve or
enhance program outcomes or to reduce producer fees according
to provisions of an approved producer responsibility plan.
(d) Fees collected under this Section may not be used for
lobbying.
Section 85. Website requirements.

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(a) A packaging producer responsibility organization and a
recycling refund producer responsibility organization must
maintain a website that uses best practices for accessibility.
(b) Both the packaging producer responsibility
organization and recycling refund producer responsibility
organization websites must contain, at a minimum:
(1) information regarding a process that members of
the public can use to contact the relevant producer
responsibility organization with questions;
(2) the draft and approved producer responsibility
plans and any draft and approved amendments;
(3) annual reports submitted to the Agency;
(4) a link to related administrative rules
implementing this Act;
(5) the names of producers and brands that are not in
compliance with this Act; and
(6) a list, updated at least monthly, of all member
producers operating under the packaging producer
responsibility plan or recycling refund producer
responsibility plan.
(c) In addition to the requirements in subsection (b), the
packaging producer responsibility organization website must
have:
(1) a directory of all service providers operating
under the packaging producer responsibility plan
administered by the packaging producer responsibility

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organization, grouped by location or political
subdivision, and information about how to request service;
(2) information for State residents on what to do with
materials on the recyclable and compostable lists;
(3) the list of exempt materials as defined in this
Act and covered materials exempt from performance targets
as approved in the packaging producer responsibility plan;
(4) current and all past needs assessments; and
(5) education materials on source reduction, reuse,
recycling, and composting for producers and the general
public.
(d) In addition to the requirements in subsection (b), the
recycling refund producer responsibility organization website
must have:
(1) the list of covered beverage containers that are
redeemable for the applicable refund value in this Act;
(2) education materials on how to redeem covered
beverage containers and the importance of recycling
covered beverage containers; and
(3) a list and map of all redemption sites currently
accepting covered beverage containers for a refund,
including the hours each redemption site accepts covered
beverage containers.
Section 90. Applicable refund value.
(a) The applicable refund value shall be as follows:

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(1) Every covered beverage container sold or offered
for sale in the State shall have a refund value of 10 cents
beginning January 1, 2029.
(2) If a performance target was not met in the
previous calendar year, the Agency may adopt rules
providing a different refund value than the refund value
provided under paragraph (1), so long as the modified
refund value is not based on the type of beverage
container, but no more than:
(A) once during any 10-year period in consultation
with the recycling refund producer responsibility
organization; and
(B) once during any 5-year period if there is a
request from the recycling refund producer
responsibility organization for a change in the refund
amount.
(3) For covered beverage containers sold at retail,
the retail establishment shall collect the refund value
and remit it to the recycling refund producer
responsibility organization.
(4) The charge for the refund value of covered
beverage containers shall be separately stated on a
receipt, invoice, or similar billing document given to the
consumer.
(b) Excluding the material recovery facility and drop-off
facility payments in this Section, the recycling refund

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producer responsibility organization is not required to pay
refunds on:
(1) A beverage container visibly containing or
contaminated by a substance other than water, residue of
the original contents, or ordinary dust;
(2) A beverage container that is crushed or broken or
damaged to the extent that the brand appearing on the
container cannot be identified;
(3) A beverage container that the recycling refund
producer responsibility organization has reasonable
grounds to believe was bought in another State; or
(4) A beverage container for which the recycling
refund producer responsibility organization has reasonable
grounds to believe a refund has already been given.
Section 95. Convenience standard for redemption of
containers.
(a) The recycling refund producer responsibility
organization must propose a convenience standard for
redemption of containers in the recycling refund program plan
that is based on the following:
(1) Ensure all consumers who pay a deposit have
reasonably convenient opportunities to redeem; and
(2) Provide appropriately convenient and equitable
access in both urban and rural areas.
(b) The Agency must evaluate the proposed convenience

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standard based on the following criteria:
(1) Proximity to businesses that sell a high volume of
covered beverages containers;
(2) Additional vehicle miles traveled;
(3) Car and public transportation access;
(4) Population density;
(5) Environmental justice areas;
(6) Average family income; and
(7) Needs of people collecting large amounts of
covered beverage containers for primary or important
supplemental income.
(c) If the recycling refund producer responsibility
organization does not meet the convenience standards in an
approved program plan 2 calendar years in a row, the Agency may
initiate rulemaking to support a recycling refund producer
responsibility organization's program plan amendment to
achieve the convenience standards under this Act.
Section 100. Redemption system.
(a) The network for collecting qualifying covered beverage
containers shall be as follows:
(1) The recycling refund producer responsibility
organization must, at its own cost, install, operate, and
maintain a network of covered beverage container
collection mechanisms for consumers to redeem covered
beverage containers for the applicable refund value per

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this Act that satisfies:
(A) the convenience standard in this Act; and
(B) the performance targets in this Act.
(2) The network of covered beverage container
collection mechanisms may include a mix of ways for
consumers to redeem covered beverage containers including
express redemption sites and full-service redemption sites
at locations convenient to consumers such as nearby or in
the parking lots of retailers that sell covered beverage
containers, nonprofit organization facilities, and local
government sites.
(3) The recycling refund producer responsibility
organization may establish and dissolve partnerships with
any organization or individual to enhance redemption
network operations and better serve consumers.
(b) The recycling refund producer responsibility
organization shall fairly compensate all locations hosting
redemption sites for the space occupied by the covered
beverage container collection mechanisms.
(c) A retail establishment has no obligation under this
Act to host a covered beverage container processing mechanism.
A retail establishment that chooses to host a redemption site
is eligible to have a self-serve kiosk, located at the retail
establishment at no charge by the recycling refund producer
responsibility organization, to facilitate the printing of
redemption vouchers, and pay the value of redemption vouchers

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to consumers that can be used on the premises. The recycling
refund producer responsibility organization shall reimburse
retailers for the value of valid vouchers redeemed by
customers.
(d) Requirements for standard bags for bag drop shall be
as follows:
(1) A retail establishment larger than 20,000 square
feet must sell bags for the redemption program at the
price established by the recycling refund producer
responsibility organization.
(2) If the standard bags for the bag-drop program are
made of plastic film, the recycling refund producer
organization must:
(A) ensure that the bags have a minimum of 50%
postconsumer recycled content;
(B) demonstrate, upon request of the Agency, that
the waste film from the bags is being recycled at
responsible end-markets; and
(C) include instructions on the bag how the bag
should be utilized and recycled through a drop-off
program.
(3) The recycling refund producer organization must
credit the cost of any required bag purchase back to the
customer when the bag is returned and processed through
the deposit return system.

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Section 105. Use of unredeemed deposits. Any deposits that
are not returned to the consumer are to be spent only by the
recycling refund producer organization and only for one or
more of the following purposes:
(1) education and outreach activities to encourage
redemption activity;
(2) increasing the number of redemption sites; and
(3) other activities that are described in the
recycling refund program plan that directly contribute to
achieving the performance requirements described in this
Act.
Section 110. Refund value to drop-off facilities and
material recovery facilities. The following information is
required, or the following information is relevant to the
refund value to drop-off facilities and material recovery
facilities:
(1) Beginning after the first full month that covered
beverage containers are sold with the applicable refund
value and ending once the packaging program begins, the
recycling refund producer organization shall make a
monthly payment directly to each material recovery
facility and drop-off facility based on data submitted by
each material recovery facility drop-off facility under
this Act.
(2) The recycling refund producer responsibility

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organization shall establish a quality standard for each
material.
(3) On a monthly basis, the operator of a material
recovery facility and drop-off facility shall submit the
following information to the recycling refund producer
responsibility organization: (i) the number of tons of
covered beverage containers the facility received for
processing in the previous month by material; and (ii) the
number of tons of covered beverage containers the facility
transferred to additional materials processing or
end-markets in the previous month by material;
(4) The recycling refund producer organization must
convert the material tons to unit equivalent using a
methodology that is published on its website and developed
in consultation with material recovery facilities.
(5) The recycling refund producer organization shall
pay each material recovery facility and drop-off facility
at least 50% of the refund value for each covered beverage
container that the material recovery facility transferred
to additional materials processing or end-markets and that
meets the quality standard in paragraph (2).
(6) Material recovery facilities must share the
payments with their customers consistent with their supply
agreements so that communities and generators receive the
appropriate amount of the refund values paid to material
recovery facilities and drop-off facilities.

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(7) The operators of material recovery facilities and
drop-off facilities shall use an industry-standard scale
to measure the weight of all covered beverage container
materials that enter the facility.
(8) The recycling refund producer responsibility
organization may conduct quarterly audits on the quality
and quantity of the material recovery facilities' and
drop-off facilities' material upon request by the
organization and at the organization's expense.
(9) The recycling refund producer responsibility
organization may choose to partner with a material
recovery facility or drop-off facility to provide space
and install the necessary equipment to co-locate a
recycling refund processing facility in the same vicinity.
(10) Monthly payments to the material recovery
facilities and drop-off facilities shall end following the
end of the first packaging producer program plan period.
Section 115. Reporting.
(a) Packaging producer responsibility organization annual
report requirements shall be as follows:
(1) By June 1, 2030, and annually thereafter, a
packaging producer responsibility organization shall
submit a report to the Agency that contains, at a minimum,
the following information for the previous calendar year:
(A) the amount of covered materials introduced, by

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each covered materials type, reported in the same
units used to establish fees under this Act;
(B) progress made toward the performance targets
reported in the same units used to establish producer
fees under this Act and reported statewide, including:
(i) the amount of covered materials successfully
source reduced, reused, recycled, and composted by
covered materials type and the strategies or
collection method used; and (ii) information about
third-party certifications obtained;
(C) the total cost to implement the program and a
detailed description of program expenditures by
category, including: (i) the total amount of producer
fees collected; (ii) a description of infrastructure
investments made; and (iii) a breakdown of payments by
covered services, covered entities, and regions of the
State;
(D) a copy of a financial audit of program
operations conducted by an independent auditor
approved by the Agency that meets the requirements of
the Financial Accounting Standards Board's Accounting
Standards Update 2016-14, Not-for-Profit Entities
(Topic 958), as amended;
(E) a description of program performance problems
that emerged in specific locations and efforts taken
or proposed by the producer responsibility

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organization to address them;
(F) a description of public awareness, education,
and outreach activities undertaken, including any
evaluations conducted of their efficacy;
(G) a summary of consultations held with the
advisory board and how any feedback was incorporated
into the report as a result, together with a list of
rejected recommendations and the reasons for
rejection;
(H) a list of producers found to be out of
compliance with this Act and actions taken by the
producer responsibility organization to return
producers to compliance, and notification of any
producers that are no longer participating in the
producer responsibility organization or have been
expelled due to their lack of compliance;
(I) proposed amendments to the producer
responsibility plan to improve program performance or
reduce costs, including changes to producer fees,
infrastructure investments, or contract rates;
(J) recommendations for additions or removal of
covered materials to or from the recyclable or
compostable covered materials lists developed under
this Act; and
(K) information requested by the Agency to
evaluate the effectiveness of the program as it is

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described in the producer responsibility plan and to
assist with determining compliance with this Act.
(2) If there is more than one packaging producer
responsibility organization, they must coordinate to
submit a single annual report.
(3) Every fourth year after a packaging producer
responsibility plan is approved by the Agency, a
performance audit of the program must be completed by the
packaging producer responsibility organization. The
performance audit must conform to audit standards
established by the United States Government Accountability
Office; the National Association of State Auditors,
Comptrollers, and Treasurers; or another nationally
recognized organization approved by the Agency.
(b) Recycling refund producer responsibility organization
annual report requirements shall be as follows:
(1) By June 1, 2030, and annually thereafter, the
recycling refund producer responsibility organization
shall submit a report to the Agency that contains, at a
minimum, the following information for the previous
calendar year:
(A) covered beverage containers included in the
program sold in the State, by material type;
(B) covered beverage containers redeemed and
recycled through the program, by material type;
(C) redemption sites and processing facilities;

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(D) verification of materials handled at
responsible end-markets;
(E) audited financial reports, including sources
and uses of funds; and
(F) an evaluation of convenience of the program
with the same criteria the Agency must use under this
Act.
(2) If there is more than one recycling refund
producer responsibility organization, they must coordinate
to submit a single annual report.
(c) The recycling refund producer responsibility
organization and packaging producer responsibility
organization that submits information or records to the Agency
under subsections (a) and (b) may request that a portion of the
information or records be made available only for the
confidential use of the Agency, the Director of the Agency, or
the appropriate division of the Agency. The Director of the
Agency shall give consideration to the request, and if the
Director determines that this action is not detrimental to the
public interest, the Director must grant the request for the
information to remain confidential.
(d) All data reported by a packaging producer
responsibility organization and a recycling refund producer
responsibility organization under this Section must, at the
request of the Agency no more than once annually, be audited by
an independent third party. A packaging producer

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responsibility organization or recycling refund producer
responsibility organization is responsible for all costs
associated with the data audit. Auditable data shall only
include data held by a packaging producer responsibility
organization or a recycling refund producer responsibility
organization. Auditing of any data inputs to the packaging
producer responsibility or recycling refund producer
responsibility organization is the responsibility of the
respective producer responsibility organization.
(e) A packaging producer responsibility organization or
recycling refund producer responsibility organization that
fails to meet a performance target required under this Act or
approved in a producer responsibility plan must, within 90
days of filing an annual report under this Section, file with
the Agency an explanation of the factors contributing to the
failure and propose an amendment to the producer
responsibility plan specifying changes including in its
operations that the packaging producer responsibility
organization or recycling refund producer responsibility
organization will make that are designed to achieve the
performance targets and convenience standard.
(f) By October 15, 2032, and every 2 years thereafter, the
Agency must submit a report to the Governor and to the General
Assembly. The report must contain:
(1) a summary of the operations of this Act during the
previous years including the performance targets versus

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actual performance;
(2) a summary of the needs assessment;
(3) a link to reports filed under this Act;
(4) recommendations for policy, statutory, or
regulatory changes to the program;
(5) an analysis of the impacts of exempting certain
materials from the definition of covered materials and of
exempting certain persons from the definition of producer;
(6) a list of efforts undertaken by the Agency to
enforce and secure compliance with this Act; and
(7) any other information the Agency deems to be
relevant.
(e) By April 1, 2030, and each year thereafter, each
material recovery facility and drop-off facility that receives
covered materials are to report annually to the packaging
producer responsibility organization and the recycling refund
producer responsibility organization and the Agency including
the following information:
(1) Amount of material accepted by supplier and
location of origin (municipality, service provider, or
other);
(2) Amount of material sold to market, by commodity
type;
(3) Amount of residue or waste generated; and
(4) Verification that end-markets are responsible and
compliant with program requirements.

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Section 120. Anticompetitive conduct. A packaging producer
responsibility organization or a recycling refund producer
responsibility organization that arranges collection,
recycling, composting, source reduction, or reuse services
under this Act may engage in anticompetitive conduct to the
extent necessary to plan and implement collection, recycling,
composting, source reduction, or reuse systems to meet the
obligations under this Act, and is immune from liability under
State laws relating to antitrust, restraint of trade, and
unfair trade practices.
Section 125. Rulemaking. The Agency shall adopt rules to
implement this Act.
Section 130. Enforcement and penalties.
(a) The Agency may administratively impose a civil penalty
of up to $1,000 per violation per day on any producer who
violates this Act and up to $10,000 per violation per day for
the second and each subsequent violation.
(b) The Agency may administratively impose a civil penalty
of up to $1,000 per violation per day on any packaging producer
responsibility organization or recycling refund producer
responsibility organization that violates this Act and up to
$10,000 per violation per day for the second and each
subsequent violation in any calendar year.

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(c) The Agency may, in addition to assessing the penalties
provided in subsections (a) and (b) of this Section, take any
combination of the following actions:
(1) issue a corrective action order to a producer or a
packaging producer responsibility organization or a
recycling refund producer responsibility organization;
(2) issue an order to a packaging producer
responsibility organization or a recycling refund producer
responsibility organization to provide for the continued
implementation of the program in the absence of an
approved plan;
(3) revoke the producer responsibility organization's
plan approval and require resubmittal of a producer
responsibility;
(4) require a producer responsibility organization to
revise or resubmit a plan within a specified time frame;
or
(5) require additional reporting related to the area
of noncompliance.
(d) The Agency may assess a penalty on a person that
continues to sell or distribute covered beverage containers of
a producer that is in violation of this Act 60 days after
receipt of the written warning under this Section. The amount
of the penalty that the Agency may assess under this
subsection is twice the value of the covered beverage
containers sold in violation of this Act or $500, whichever is

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greater. The Agency must waive the penalty upon verification
that the person has discontinued distribution or sales of the
covered beverage containers within 30 days of the date the
penalty is assessed.
(e) For a producer or producer responsibility organization
out of compliance with the requirements of this Act, the
Agency shall provide written notification and offer
information. For the purposes of this Section, written
notification serves as notice of the violation. The Agency
must issue at least one notice of violation by certified mail
prior to assessing a penalty and the Agency may only impose a
penalty on a producer that has not met the requirements of this
Act 60 days following the date the written notification of the
violation was sent.
(f) The Agency shall adopt rules providing for an
administrative proceeding inn which a penalty under this
Section may be imposed. All final administrative decisions
under this Act or rules adopted under this Act shall be subject
to judicial review pursuant to the Administrative Review Law,
as amended, and the rules adopted under it.
(g) The Attorney General may bring an action in the
circuit court to enforce the collection of any monetary
penalty imposed. Penalties levied under this Section must be
deposited in the Recycling Refund Program Fund or Packaging
Producer Responsibility Program Fund.

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Section 135. Packaging Producer Responsibility Program
Fund. The Packaging Producer Responsibility Program Fund is
established as a special Fund in the State treasury.
Appropriations and transfers to the account and fees collected
under the packaging producer responsibility program, or as
otherwise provided in this Act or rules adopted under this
Act, must be credited to the Fund. Earnings, such as interest,
dividends, and any other earnings arising from assets of the
Fund, must be credited to the Fund. Moneys remaining in the
Fund at the end of a fiscal year remains in the account until
expended. Moneys from the Fund are appropriated in a
continuing appropriation to the Agency to pay the reasonable
costs of the Agency to administer this Act.
Section 140. Recycling Refund Program Fund.
(a) The recycling refund program account is established as
a special Fund in the State treasury. All receipts received by
the Agency under this Act or rules adopted under this Act must
be deposited in the Fund, except as provided in this Act or
rules adopted under this Act.
(b) Expenditures from the Fund may be used by the Agency
only for implementing, administering, and enforcing the
requirements of this Act related to the recycling refund
program. Only the Director of the Agency may authorize
expenditures from the Fund. Moneys from the Fund are
appropriated in a continuing appropriation to the Agency for

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the purposes under this Section.
Section 800. The State Finance Act is amended by adding
Sections 5.1030 and 5.1031 as follows:
(30 ILCS 105/5.1030 new)
Sec. 5.1030. The Packaging Producer Responsibility Program
Fund.
(30 ILCS 105/5.1031 new)
Sec. 5.1031. The Recycling Refund Program Fund.