notice of noncompliance that may be cor-
rected within 30 days. The Administrator 
may issue a civil penalty for knowing viola-
tions. The civil penalties shall not exceed 
the sum of $25,000 for every day of such 
violation. Any violation with respect to a 
regulation prescribed pursuant to the plas-
tics recycling accounting and labeling pro-
gram which establishes a regulatory stand-
ard based upon a multiday averaging pe-
riod shall constitute a separate day of vio-
lation for each and every day in the aver-
aging period. 
(D) Procedures for the Administrator to 
notify the Federal Trade Commission when 
products produced by marketers are identified 
in retail without proper labeling, as they shall 
be developed pursuant paragraph (3) or with la-
beling based on misrepresentations or any pro-
hibited acts. 
(2) Develop recordkeeping requirements and 
procedures for marketers involving the transfer of 
products between parties that is synthesized with, 
but not duplicative of the requirements of the ap-
proved certification system, and is auditable by the 
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB
Administrator. For purposes of this section, the 
term ‘‘transfer of product between parties’’ means 
the transfer of credits assigned to a post-use plastic 
product through an approved certification system to 
another approved certification system through a 
‘‘like-for-like product exchange’’ without requiring 
the physical movement of the post-use plastic prod-
uct between the systems, subject to the following 
limitations: 
(A) The exchanged products to which the 
post-use plastic product has been attributed 
must be equivalent. 
(B) The mass balance of the two systems 
and 
the 
transfer 
must 
be 
independently 
verifiable. Transfer of credits has the benefit of 
maximizing the market opportunities for recy-
cled material without driving increased costs 
and related greenhouse gas emissions to trans-
port the same material between two locations. 
(3) Develop a label that shall include the lan-
guage ‘‘llll% EPA Certified Balanced Recy-
cled Plastics’’ that can be placed on plastics pack-
aging by marketers satisfying the annual certifi-
cation process set forth in section 202 to create 
wide-scale public awareness of products satisfying 
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB
the plastics recycling accounting and labeling pro-
gram and assisting with the Nation’s efforts to 
achieve the National Recycling Goal. 
(4) Develop procedures for placement of the 
label on a variety of plastics packaging produced by 
marketers, taking into consideration alternative la-
beling processes for various types of plastics pack-
aging. 
(5) Develop public education and awareness ini-
tiatives of the label, including providing special out-
reach to small businesses, and the interconnection 
between the National Recycling Goal and consumers 
purchasing products containing recycled plastics 
from marketers. 
(c) ENFORCEMENT.—Beginning on January 1, 2030, 
the Administrator shall enforce the minimum mandate by 
conducting audits and assessing administrative penalties 
against marketers that are not in compliance with this 
title or in accordance with this section. Beginning March 
1, 2030, and annually thereafter, the Administrator shall 
invoice any assessed administrative penalties for the pre-
vious calendar year based on the mandate for recycled 
plastics of the previous calendar year. The Administrator 
shall calculate the amount of the penalty based upon the 
amount in pounds in the aggregate of virgin and recycled 
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB
plastics material used by the marketer in its plastics pack-
aging portfolio sold or offered for sale in the United 
States. A marketer that has exceeded the mandate for re-
cycled plastics may indicate the actual percentage of recy-
cled plastics it achieved in its annual plastics packaging 
portfolio on the label developed pursuant to section 203 
of this Act. 
(d) REQUIREMENTS.—Not later than January 1, 
2030, the Administrator shall, by rulemaking, establish a 
process that— 
(1) reviews information provided by a marketer; 
(2) determines the mandate shortfall and the 
compliance deficit percentage for each marketer; and 
(3) beginning on March 1, 2030, invoicing ad-
ministrative penalties to marketers that are not in 
compliance. 
(e) ADMINISTRATIVE PENALTY.— 
(1) IN GENERAL.—A marketer that has a man-
date shortfall greater than zero shall be, as deter-
mined by the Administrator, not in compliance with 
the minimum mandate and subject to an administra-
tive penalty to be collected annually. 
(2) PENALTY FUND.—Penalties received under 
this subsection shall be deposited in a special fund, 
established by the Administrator, to be used for en-
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB
hancing educational and infrastructure grants pro-
vided available to municipalities pursuant to section 
102 to promote compliance with the National Plas-
tics Recycling Standards. 
(3) PENALTY
PAYMENT
SCHEDULE.—A mar-
keter that is assessed a penalty pursuant to this 
subsection shall be permitted to pay those penalties 
to the Administrator in quarterly installments or ar-
range an alternative payment schedule subject to the 
approval of the Administrator. 
(4) PENALTY AMOUNT.— 
(A) IN GENERAL.—In assessing an admin-
istrative penalty against a noncompliant mar-
keter, the Administrator shall calculate such 
penalty in the following manner: 
(i) For a penalty assessed in 2030, 
the penalty shall be 5 cents per pound of 
the mandate shortfall. 
(ii) For a penalty assessed in subse-
quent years, if a noncompliant marketer— 
(I) has a compliance deficit per-
centage of 25 percent or less, the pen-
alty shall be 5 cents per pound of the 
mandate shortfall; 
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(II) has a compliance deficit per-
centage of 50 percent or less, but 
greater than 25 percent, the penalty 
shall be 10 cents per pound of the 
mandate shortfall; 
(III) has a compliance deficit 
percentage of 75 percent or less, but 
greater than 50 percent, the penalty 
shall be 15 cents per pound of the 
mandate shortfall; and 
(IV) has a compliance deficit per-
centage that is greater than 75 per-
cent, the penalty shall be 20 cents per 
pound of the mandate shortfall. 
(B) PRORATED PENALTIES.—For penalties 
assessed under subparagraph (A)(i)(II), a pen-
alty that is 10 cents or higher per pound of the 
mandate shortfall may be lowered by the Ad-
ministrator by 5 cents per pound each time a 
noncompliant marketer for which the penalty 
was assessed makes payments that decreases 
the compliance deficit percentage to the next 
percentage bracket. 
(5) ADJUSTMENTS.—Not later than after the 
date on which the Administrator begins to enforce 
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB
the minimum mandate, the Administrator shall 
evaluate the penalties assessed for the year prior to 
determine if the penalty amounts under paragraph 
(4) requires adjustment to prevent penalty amounts 
that are— 
(A) too low, such that marketers would 
have a financial incentive to pay the fines in-
stead of attempting to meet the minimum man-
date; or 
(B) too high, which may prevent marketers 
from meeting the minimum mandate despite 
sincere efforts. 
(f) AUDITS.— 
(1) The Administrator may conduct audits and 
investigations and take an enforcement action 
against a marketer for the purpose of ensuring com-
pliance with the mandates for recycled plastics. The 
Administrator may take an enforcement action 
against a marketer that fails to pay or underpays 
the assessed or audited administrative penalty only 
after notice and hearing terms developed by the Ad-
ministrator. 
(2) The Administrator shall keep confidential 
all business trade secrets and proprietary informa-
tion about manufacturing processes and equipment 
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB
that the Administrator gathers or becomes aware of 
through the course of conducting audits or investiga-
tions pursuant to subsection (f)(1). Business trade 
secrets and proprietary information obtained pursu-
ant to this subdivision shall not be subject to the 
Freedom of Information Act. 
(3) A marketer may obtain a copy of the Ad-
ministrator’s audit of that marketer conducted pur-
suant to subsection (f)(1). 
SEC. 204. GENERAL PROVISIONS. 
The provisions of this Act shall supersede any and 
all laws of any State or political subdivision of a State 
insofar as they may now or hereafter relate to any man-
dates for recycled plastics or recycled content, or restric-
tions on the use of advanced recycling, mass balance, la-
beling programs (as related to recycled plastics or recycled 
content). No State or political subdivision thereof shall es-
tablish or enforce any recycling mandates or recycling 
standards that are lesser, conflicting, or inconsistent with 
the mandates or standards established under this Act. 
Æ 
VerDate Sep 11 2014 
03:18 Oct 02, 2024
Jkt 059200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6301
E:\BILLS\H9676.IH
H9676
kjohnson on DSK7ZCZBW3PROD with $$_JOB