I

103D CONGRESS

1ST SESSION H. R. 1809

To amend the Solid Waste Disposal Act to require producers and importers

of newsprint to recycle a certain percentage of newsprint each year,

to require the Administrator of the Environmental Protection Agency

to establish a recycling credit system for carrying out such recycling

requirement, to establish a management and tracking system for such

newsprint, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 22, 1993

Mr. TORRES introduced the following bill; which was referred to the

Committee on Energy and Commerce

A BILL

To amend the Solid Waste Disposal Act to require producers

and importers of newsprint to recycle a certain percentage of newsprint each year, to require the Administrator

of the Environmental Protection Agency to establish a

recycling credit system for carrying out such recycling

requirement, to establish a management and tracking

system for such newsprint, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Newsprint Recycling

5 Incentives Act’’.
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1 SEC. 2. FINDINGS.

2 The Congress finds the following:

3 (1) Of the total United States waste-stream of

4 145 million metric tons per year, paper and related

5 products compose 64 million metric tons, or 40 per6 cent of the total.

7 (2) Ninety percent of old newspaper waste in

8 the United States is not recycled and ends up in the

9 waste-stream.

10 (3) State and local newspaper recycling pro11 grams have helped create a growing surplus of old

12 newspaper waste and have helped to bring about a

13 collapse of the market for recycled newsprint.

14 (4) The current glut of old newspaper waste

15 has caused the market for old newspaper waste to

16 decline from a price of $30 per ton to a cost or loss

17 of $10 per ton.

18 (5) The price of new newsprint does not reflect

19 the increasing cost to communities of disposal and

20 landfilling of old newspaper waste. Such cost cur21 rently is between $20 and $60 per ton, on average.

22 (6) The cost of recycling old newspaper waste

23 is substantially less than the cost of disposal.

24 (7) The demand for old newspaper waste needs

25 to be increased to provide both an outlet for the rap26 idly increasing glut of old newspaper waste and sta-
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1 ble markets for recyclers to invest in de-inking facili2 ties.

3 (8) A minimum recycling requirement can be

4 used to create a market which accurately reflects the

5 societal costs of old newspaper waste.

6 (9) The creation of an efficient market for recy7 cled newsprint requires that the cost of disposal be

8 included in the cost of unrecycled products.

9 (10) The Administrator of the Environmental

10 Protection Agency requires additional statutory au11 thority to increase recycling of old newspaper waste

12 and to stimulate demand.

13 SEC. 3. REQUIREMENTS TO RECYCLE NEWSPRINT.

14 (a) IN GENERAL.—Subtitle D of the Solid Waste Dis15 posal Act (42 U.S.C. 6941 et seq.) is amended by adding

16 at the end thereof the following:

17 ‘‘SEC. 4011. NEWSPRINT RECYCLING REQUIREMENTS.

18 ‘‘(a) GENERAL REQUIREMENT.—(1) Beginning not

19 later than 18 months after the date of the enactment of

20 the Newsprint Recycling Incentives Act, a producer or im21 porter of newsprint each year shall recycle, using a method

22 described in paragraph (2), an amount of newsprint equal

23 to at least that amount of newsprint determined by—

24 ‘‘(A) multiplying the newsprint produced or im25 ported that year by such person, by
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1 ‘‘(B) the recycling percentage established by the

2 Administrator under subsection (b).

3 ‘‘(2) A producer or importer of newsprint may comply

4 with this subsection—

5 ‘‘(A) by recycling, through de-inking, newsprint

6 for purposes of producing recycled newsprint;

7 ‘‘(B) by purchasing recycled newsprint for pur8 poses of combining with shipments of virgin news9 print; or

10 ‘‘(C) by purchasing recycling credits under the

11 recycling credit system established pursuant to sub12 section (c).

13 ‘‘(b) RECYCLING PERCENTAGE.—The Administrator

14 each year shall establish a recycling percentage for use

15 under subsection (a). The percentage applicable during

16 the first year that the requirement established by sub17 section (a) is in effect shall be not less than 20 percent.

18 For each of the ten years thereafter, the recycling percent19 age shall be an additional 2 percentage points higher than

20 the percentage of the previous year.

21 ‘‘(c) CREDIT SYSTEM FOR RECYCLING NEWS22 PRINT.—(1) Not later than 18 months after the date of

23 the enactment of the Newsprint Recycling Incentives Act,

24 the Administrator shall promulgate regulations to estab25 lish a system under which (A) producers or importers of
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1 recycled newsprint may create credits for used newsprint

2 recycling, and (B) producers or importers of newsprint

3 (virgin or recycled) may purchase such recycling credits

4 from such recyclers, for purposes of complying with sub5 section (a). The regulations shall include a mechanism or

6 mechanisms (including an auction) for any allocation of

7 credits that may be necessary. No person may create such

8 credits, and no producer or importer of newsprint may

9 purchase such credits, except in accordance with this sub10 section and the regulations promulgated under this sub11 section.

12 ‘‘(2) At a minimum, the regulations under subsection

13 (c) shall include the following requirements:

14 ‘‘(A) The producer or importer of recycled

15 newsprint shall maintain records of the receipt of old

16 newsprint and other paper products for de-inking

17 and subsequent recycling. Such records shall be

18 maintained for at least 2 years.

19 ‘‘(B) The producer of recycled newsprint shall

20 notify the Environmental Protection Agency of the

21 producer’s capacity to recycle old newsprint. Such

22 notification shall state the overall newsprint capacity

23 and that portion dedicated to de-inking and recy24 cling.
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1 ‘‘(C) The importer of recycled newsprint shall

2 notify the United States Customs Service of the

3 amount of newsprint being imported by the im4 porter. Such notice shall be accompanied by a cer5 tification verifying the accuracy of the notice. The

6 certification shall be made by the official responsible

7 for negotiating trade agreements of the country from

8 which the importer is shipping newsprint to the

9 United States.

10 ‘‘(D) Producers or importers of newsprint shall

11 maintain records of sales of virgin and recycled

12 newsprint, including quantities and prices of recy13 cled newsprint and sales or other disposition of such

14 recycling credits as may be used to demonstrate

15 compliance with the requirements of this section.

16 Such records shall be maintained for at least 2

17 years.

18 ‘‘(E) Producers and importers of newsprint

19 shall report to the Administrator of the Environ20 mental Protection Agency annually and on an in21 terim quarterly basis—

22 ‘‘(i) the amount of recycled content news23 print produced or imported each year;
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1 ‘‘(ii) the number of credits purchased or

2 otherwise acquired from other producers or im3 porters; and

4 ‘‘(iii) the number of credits sold or other5 wise distributed to other producers or import6 ers.

7 ‘‘(3) The Administrator may include such other re8 quirements in the regulations under paragraph (1) with

9 respect to qualifications for recyclers, importers, and pro10 ducers; methods for auditing compliance with the system;

11 and enforcement of the system; as the Administrator con12 siders necessary or appropriate for administering the recy13 cling credit system established under this subsection.

14 ‘‘(4) For purposes of this section, the term ‘recycling

15 credit’ means a legal record of a recycling activity under16 taken in accordance with this subsection that represents

17 an amount of newsprint recycled through de-inking for

18 purposes of complying with this section.

19 ‘‘(d) REPORTS.—(1) Not later than 6 years after the

20 date of the enactment of the Newsprint Recycling Incen21 tives Act, the Administrator shall submit to Congress an

22 interim report on the implementation of this section. The

23 report shall include, at a minimum—
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1 ‘‘(A) a discussion of the effects of the require2 ments of this section on the newsprint and news3 paper industry and on the environment; and

4 ‘‘(B) an evaluation of the level of the recycling

5 percentage under subsection (b) and recommenda6 tions on whether, and at what rate, the percentage

7 should be increased in future years above the per8 centage applicable under subsection (b).

9 ‘‘(2) Not later than 10 years after such date, the Ad10 ministrator shall submit to Congress a final report on the

11 implementation of this section. The report shall include

12 an updated version of the discussion and evaluation re13 quired in the interim report, as well as such other findings

14 and recommendations with respect to the implementation

15 of this section as the Administrator considers appropriate.

16 ‘‘(e) APPLICABILITY.—This section applies to any

17 person who produces or imports more than 10 tons of

18 newsprint a year.

19 ‘‘(f) REGULATIONS.—The Administrator shall pro20 mulgate regulations to implement this section not later

21 than 18 months after the date of the enactment of the

22 Newsprint Recycling Incentives Act. If the Administrator

23 fails to promulgate such regulations by that date, the recy24 cling percentage under subsection (b) shall be 20 percent

25 until such time as the regulations are promulgated.
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1 ‘‘(g) CIVIL PENALTY.—

2 ‘‘(1) Whoever violates this section shall be liable

3 to the United States for a civil penalty in an amount

4 not to exceed $2,500 for each such violation. Such

5 civil penalty shall be assessed by the Administrator

6 of the Environmental Protection Agency by an order

7 made on the record after opportunity for a hearing

8 in accordance with section 554 of title 5, United

9 States Code. Before issuing such an order, the Ad10 ministrator shall give written notice to the person to

11 be assessed a civil penalty and provide such person

12 an opportunity to request, within 15 days of the

13 date the notice is received by such person, a hearing

14 on the order.

15 ‘‘(2) In determining the amount of a civil pen16 alty, the Administrator shall take into account the

17 nature, circumstances, extent, and gravity of the vio18 lation or violations and, with respect to the violator,

19 ability to pay, effect on ability to continue to do

20 business, any history of prior violations under this

21 section, the degree of culpability, and such other

22 matters as justice may require.

23 ‘‘(3) The Administrator may compromise, mod24 ify, or remit, with or without conditions, any civil

25 penalty which may be imposed under this subsection.
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1 The amount of such penalty, when finally deter2 mined, or the amount agreed upon in compromise,

3 may be deducted from any sums owing by the

4 United States to the person charged.

5 ‘‘(4) Any person who requested in accordance

6 with this subsection a hearing respecting the assess7 ment of a civil penalty and who is aggrieved by an

8 order assessing a civil penalty may file a petition for

9 judicial review of such order with the United States

10 Court of Appeals for the District of Columbia Cir11 cuit or for any other circuit in which such person re12 sides or transacts business. Such a petition may only

13 be filed within the 30-day period beginning on the

14 date the order making such assessment was issued.

15 ‘‘(5) If any person fails to pay an assessment

16 of a civil penalty—

17 ‘‘(A) after the order making the assess18 ment has become a final order and if such per19 son does not file a petition for judicial review

20 of the order in accordance with this section, or

21 ‘‘(B) after a court in an action brought

22 under this section has entered a final judgment

23 in favor of the Administrator,

24 the Attorney General shall recover the amount as25 sessed (plus interest at currently prevailing rates
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1 from the date of the expiration of the 30-day period

2 referred to in paragraph (4) or the date of such final

3 judgment, as the case may be) in an action brought

4 in any appropriate district court of the United

5 States. In such an action, the validity, amount, and

6 appropriateness of such penalty shall not be subject

7 to review.

8 ‘‘(h) HIGH GRADE PAPER RECYCLING.—(1) Not

9 later than three years after the date of the enactment of

10 the Newsprint Recycling Incentives Act, the Administrator

11 shall submit to Congress a plan, based on the experience

12 with the implementation of this section, for the recycling

13 of post-consumer high grade paper. The plan shall discuss

14 the desirability and feasibility, in terms of environmental

15 impacts resulting from reduced volume and economic im16 pacts, of requiring the recycling of such paper, and the

17 specific manner in which such recycling could be accom18 plished if the Administrator concludes that such recycling

19 is feasible. The plan also shall include an incentive-based

20 method or methods for accomplishing the recycling, such

21 as a credit system (as established under subsection (c)).

22 ‘‘(2) Not later than one year after the plan is submit23 ted under paragraph (1), the Administrator shall begin to

24 implement the plan. For purposes of implementing the

25 plan, the Administrator is authorized to carry out any of
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1 the methods for accomplishing the recycling of the paper

2 that are included in the plan.

3 ‘‘(3) For purposes of this subsection, the term ‘high

4 grade paper’, means printed or unprinted sheets, shavings,

5 guillotined books, quire waste, and cuttings of sulphite or

6 sulphate ledger, bond, and writing paper (and all other

7 papers which have a similar fiber and filler content).

8 (b) TECHNICAL AMENDMENT.—The table of contents

9 for subtitle D of the Solid Waste Disposal Act (contained

10 in section 1001 of such Act) is amended by adding at the

11 end thereof the following:

‘‘Sec. 4011. Newsprint recycling requirements.’’.

12 SEC. 5. AUTHORIZATION.

13 There is authorized to be appropriated to the Admin14 istrator of the Environmental Protection Agency

15 $1,200,000 to carry out section 4011 of the Solid Waste

16 Disposal Act (as added by section 3). Such funds shall

17 be used to hire the equivalent of at least six additional

18 full-time employees to carry out such provisions. Such

19 funds shall remain available until expended.

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