Bill Text: TX HB4839 | 2025-2026 | 89th Legislature | Comm Sub

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Bill Title: Relating to the development, promotion, and funding of certain recycling projects.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2025-05-13 - Committee report sent to Calendars [HB4839 Detail]

Download: Texas-2025-HB4839-Comm_Sub.html

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By: Walle H.B. No. 4839
Substitute the following for H.B. No. 4839:
By: Landgraf C.S.H.B. No. 4839

A BILL TO BE ENTITLED
AN ACT
relating to the development, promotion, and funding of certain
recycling projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 361.0152(a), Health and Safety Code, is
amended by adding Subdivision (2-a) to read as follows:
(2-a) "Program" means the recycling market
development program established by Section 361.442.
SECTION 2. Sections 361.0152(c), (d), (f), (g), and (h),
Health and Safety Code, are amended to read as follows:
(c) In cooperation with the Texas Economic Development and
Tourism Office and in consultation with the recycling market
advisory council established under Section 361.443, the program
administrator [commission] shall produce for the commission a plan
with recommendations to stimulate the use of recyclable materials
as feedstock in processing and manufacturing.
(d) The plan must:
(1) identify the quantity and type of recyclable
materials that are being recycled from municipal and industrial
sources;
(2) identify and estimate the quantity and type of
recyclable materials that are generated but not being recycled;
(3) identify and estimate the current economic
benefits of recycling materials and the potential economic benefits
to be gained by recycling materials identified under Subdivision
(2);
(4) identify the location, processing capacity, and
consumption capacity of existing principal processors and
manufacturers;
(5) identify the barriers to increasing the use of
recyclable materials as feedstock for principal processors and
manufacturers and means to eliminate those barriers;
(6) identify and estimate the need and type of
principal processing and manufacturing facilities necessary to
consume the existing and potential volumes of recyclable materials;
[and]
(7) consider health effects related to recycled
materials and recycling technologies;
[(7)] (8) recommend institutional, financial,
administrative, and physical methods, means, and processes that
could be applied by this state and by local governments to:
(A) increase the use of recyclable materials;
(B) stimulate the use of recyclable materials by
principal processors and manufacturers; and
(C) encourage the expansion of existing
principal processors and manufacturers and the development of new
principal processors and manufacturers that use recyclable
materials;
(8) include a report on the progress and results of
research conducted by the program under Section 361.442(b);
(9) include a report on the status of grants and loans
provided through the program; and
(10) provide legislative and policy recommendations
to the commission regarding the purposes of the program.
(f) To the extent practicable in preparing the plan, the
program administrator [commission] shall use methodologies and
information derived from other recycling economic studies already
performed.
(g) The program administrator [commission] shall update the
plan not later than December 1 of each even-numbered year [every
four years], and in a year in which the plan is updated, the plan
shall be included in the annual summary of municipal solid waste
management produced by the municipal solid waste permits section of
the commission and delivered to the governor and legislature.
(h) In cooperation with other state agencies, including the
governor's office, the commission shall develop an education
program intended for the public that must include:
(1) the economic benefits of recycling, including job
creation, economic impact, percent of total municipal and
industrial solid waste recycled, weight and volume of municipal and
industrial solid waste recycled, and taxes and fees paid by the
recycling industry;
(2) a spotlight of collectors and processors of
recyclable materials and manufacturers based in this state that are
using recyclable materials as feedstock; [and]
(3) the detrimental effects of contamination in the
recyclable materials stream and the need to reduce those effects;
and
(4) educational materials developed under Section
361.0202, as appropriate.
SECTION 3. Chapter 361, Health and Safety Code, is amended
by adding Subchapter N-1 to read as follows:
SUBCHAPTER N-1. RECYCLING INNOVATION AND MARKET DEVELOPMENT
Sec. 361.441. DEFINITIONS. In this subchapter:
(1) "Fund" means the Texas Recycling Fund established
by Section 361.444.
(2) "Program" means the recycling market development
program established by Section 361.442.
Sec. 361.442. RECYCLING MARKET DEVELOPMENT PROGRAM. (a)
The commission shall establish a recycling market development
program to:
(1) facilitate the realization of economic benefits to
this state that may result from the expanded use of recycled
material as feedstock in manufacturing and processing;
(2) promote the development of recycling
infrastructure and technology in this state; and
(3) make policy recommendations to the commission.
(b) The program administrator shall:
(1) conduct research on:
(A) techniques to improve the recycling
collection process and increase recycling rates in this state;
(B) processes to improve the access of
manufacturers in this state to collected recyclable materials;
(C) the relationship between the supply of
recyclable material and the demand for recycled material feedstock
for manufacturing and end use; and
(D) potential improvements to technology
currently used at recycling facilities in this state;
(2) oversee and coordinate initiatives conducted by
the commission, the comptroller, and other state agencies under the
recycling market development implementation program established by
Section 361.423;
(3) make recommendations to the commission on
potential financial incentives and policy changes to improve
recycling infrastructure in this state;
(4) identify and apply for federal funding
opportunities related to recycling; and
(5) implement and manage financial incentives for the
development of recycling infrastructure and technology in this
state, including by:
(A) awarding grants or making loans under this
subchapter; or
(B) facilitating the application by eligible
recipients for tax credits available under state or federal law.
Sec. 361.443. RECYCLING MARKET ADVISORY COUNCIL. (a) The
commission shall appoint an advisory council to advise the program
administrator on the implementation of Section 361.0152 and this
subchapter.
(b) The commission shall appoint a person to the advisory
council or fill a vacancy on the advisory council following review
and recommendation of an applicant by the executive director.
(c) The advisory council is composed of the following 13
members:
(1) one representative from a regional council of
governments;
(2) one representative from the paper and pulp
industry in this state;
(3) one representative from the organics recycling
industry in this state;
(4) one representative from the plastic manufacturing
industry in this state;
(5) one representative from the advanced recycling
industry in this state;
(6) one representative from the mechanical recycling
industry in this state;
(7) one representative from the materials recovery and
sorting facilities industry in this state;
(8) one representative from the aluminum industry in
this state;
(9) one representative from the glass industry in this
state;
(10) one representative from the alcoholic beverage or
soft drink industry in this state;
(11) one representative from the packaging supply or
packaging conversion industry in this state;
(12) one representative from the packaged retail goods
industry in this state; and
(13) one representative from the State of Texas
Alliance for Recycling;
(13) one representative from an environmental
education or advocacy organization working on recycling.
(d) The executive director shall designate the presiding
officer of the advisory council.
(e) A member of the advisory council serves a five-year
term.
(f) The advisory council shall convene at the call of the
presiding officer at least twice a year.
(g) Section 2110.008, Government Code, does not apply to the
council.
Sec. 361.444. TEXAS RECYCLING FUND. (a) The Texas
Recycling Fund is established as a dedicated account in the general
revenue fund to be administered by the executive director.
(b) The fund consists of:
(1) money appropriated to the credit of the fund;
(2) principal and interest payments on all loans from
the fund; and
(3) gifts, grants, or donations received for the fund.
(c) Money in the fund may be used only as provided by this
subchapter.
(d) The commission may not:
(1) adopt or impose a fee or penalty that is to be paid
by a private entity and deposited to the credit of the fund;
(2) direct money collected by the commission from a
fee or penalty authorized by law or commission rule to be deposited
to the credit of the fund; or
(3) authorize a private organization or entity to
impose a fee or penalty that is to be paid by a private entity and
deposited to the credit of the fund.
Sec. 361.445. USE OF FUND. The commission may use money in
the fund:
(1) for the administration of the program;
(2) to award grants or provide loans to business
entities operating in this state that provide a public benefit to
this state by encouraging economic development related to recycling
projects, as provided by Sections 361.446 and 361.447;
(3) to award grants to a public institution of higher
education in this state to conduct research that provides a public
benefit to this state by facilitating the development of recycling
technology and infrastructure in this state;
(4) to conduct recycling research pilot projects,
including pilot projects conducted in partnership with other state
agencies or business entities; or
(5) to support the implementation of the public
education program described by Section 361.0152(h).
Sec. 361.446. RECYCLING INNOVATION GRANT PROGRAM. (a) The
commission by rule shall establish a recycling innovation grant
program to allow the program administrator to use money from the
fund to make grants to entities that provide a public benefit to
this state by:
(1) conducting research on or investing in new
recycling technologies and processes in this state;
(2) enhancing the availability of recycled material
for use in manufacturing or packaging of products; or
(3) investing in technology that reduces recycling
costs or increases recycling efficiency of recyclable material.
(b) Projects that may be considered for a grant under this
section include:
(1) expanding recycling and sorting infrastructure,
including pilot projects;
(2) expanding or upgrading recycling equipment;
(3) promoting development and improving services in
rural communities in this state;
(4) addressing contamination of recyclable material;
(5) investing in processes or technology that make
recycling more economically viable;
(6) offsetting an entity's documented operating costs
for producing manufacturing feedstock from recycled material; or
(7) enhancing the marketability of recycled material.
(c) The amount of a grant awarded under this section may not
exceed 50 percent of the amount of actual eligible costs incurred by
the grant recipient within a time period prescribed by the
commission.
(d) In awarding a grant under this section, the program
administrator shall ensure that:
(1) the grant provides a public benefit to this state
as described by Subsection (a);
(2) the commission retains sufficient control over the
grant to ensure the state receives a public benefit; and
(3) the grant complies with the eligibility
requirements under Section 361.448 and applicable rules.
Sec. 361.447. RECYCLING LOAN PROGRAM. (a) The commission
by rule shall establish a loan program to allow the program
administrator to use money from the fund to provide financial
assistance to business entities for projects that provide a public
benefit to this state by improving recycling outcomes in this
state.
(b) In making a loan under this section, the program
administrator shall ensure:
(1) the loan provides a public benefit to this state by
encouraging the development of recycling technology and
infrastructure in this state;
(2) the commission retains sufficient control over the
loan to ensure the state receives a public benefit; and
(3) the loan complies with the eligibility
requirements under Section 361.448 and applicable rules.
Sec. 361.448. ELIGIBILITY CRITERIA AND REQUIREMENTS FOR
RECYCLING GRANTS AND LOANS. (a) The commission by rule shall
establish eligibility criteria and requirements for a grant or loan
made under this subchapter.
(b) Eligibility criteria established by the commission must
require an entity receiving a grant or loan to:
(1) be in good standing under the laws of this state;
(2) not owe delinquent taxes to a taxing unit of this
state;
(3) have fully repaid any previous loan made under
Section 361.447 that is past the loan's maturity date;
(4) maintain sufficient financial assurance in
accordance with commission rules for a recycling facility;
(5) agree that the recipient may not use funds from a
grant or loan made under this subchapter for financial assurance;
(6) demonstrate that a facility at which grant or loan
funds may be used will comply with commission requirements for the
containment of odors or liquids; and
(7) demonstrate that the recipient holds any necessary
facility permit or authorization under state or federal law by the
time a grant or loan is made.
(c) Requirements adopted under this section must specify
time limits for the storage and processing of material by a facility
operated by an entity receiving a grant or loan.
(d) A recipient may use a grant or loan made under this
subchapter only for a recycling purpose approved under this
subchapter or commission rule.
Sec. 361.449. ADMINISTRATIVE SUPPORT. The commission shall
provide to the program administrative support, staff, and
facilities as necessary for the program to implement this
subchapter.
Sec. 361.450. RULEMAKING. The commission shall adopt rules
as necessary to implement this subchapter.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.