An Act To Establish a Stewardship Program for Packaging
Maine Legislature, Session 130, LD 1471
Committee: Environment and Natural Resources
Sponsors: DILL, POULIOT, DUNPHY, SKOLFIELD, WHITE
Amends: 38 MRSA §1776, 38 MRSA §2146

Legislative Document
No. 1471
S.P. 474
In Senate, April 14, 2021
An Act To Establish a Stewardship Program for Packaging
Received by the Secretary of the Senate on April 12, 2021.  Referred to the Committee on 
Environment and Natural Resources pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator DILL of Penobscot.
Cosponsored by Senator: POULIOT of Kennebec, Representatives: DUNPHY of Old Town, 
SKOLFIELD of Weld, WHITE of Waterville.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  38 MRSA §1776, sub-§11, as enacted by PL 2013, c. 315, §7, is amended 
to read:
11.  Exceptions.  This section does not apply to products subject to section 1610, 
1665-A, 1665-B, 1672, 2146, 2165 or 2166.
Sec. 2.  38 MRSA §2146 is enacted to read:
§2146.  Stewardship program for packaging
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Compostable" means, with respect to a covered product, that the covered product 
or its associated packaging material has been certified by a 3rd-party certifying body 
as meeting ASTM D6400, the standard specification published by ASTM International 
for the labeling of plastics designed to be aerobically composted in municipal or 
industrial facilities, or ASTM D6868, the standard specification published by ASTM 
International for labeling of end items that incorporate plastics and polymers as 
coatings or additives with paper and other substrates designed to be aerobically 
composted in municipal or industrial facilities, or successor publications.
B.  "Composting rate" means, with respect to a covered product, the percentage of the 
total amount by weight of that covered product that is discarded in the State and 
managed through composting or anaerobic digestion in the State or in another 
jurisdiction.
C.  "Covered product" means a product that is sold, offered for sale or distributed for 
sale in or into the State contained, protected, delivered, presented or distributed in or 
using packaging material.  "Covered product" includes the packaging material used for 
or associated with the containment, protection, delivery, presentation or distribution of 
the product to the ultimate consumer in the State.
D.  "Drug" means any substance recognized as a drug under 21 United States Code, 
Section 321(g)(1), as amended, and any regulations adopted pursuant to that provision, 
that is sold, offered for sale or dispensed in the State, whether directly or through a 
wholesaler, in any form, including, but not limited to, prescription and nonprescription 
drugs, drugs in medical devices and combination products, brand and generic drugs 
and drugs for veterinary use.  "Drug" does not include: 
(1) Vitamins or supplements; 
(2) Herbal-based remedies and homeopathic drugs, products or remedies; 
(3) Cosmetics, soap with or without germicidal agents, laundry detergent, bleach, 
household cleaning products, shampoo, sunscreen, toothpaste, lip balm, 
antiperspirant or other personal care products that are regulated as both cosmetics 
and nonprescription drugs under the Federal Food, Drug, and Cosmetic Act; 
(4) Pet pesticide products contained in pet collars, powders, shampoos, topical 
applications or other forms; 
(5) Drugs that are biological products, as defined in 21 Code of Federal 
Regulations, Section 600.3(h), if the manufacturer provides a program to take back 
that drug; 
(6) Drugs for which a manufacturer provides a program to take back those drugs 
as part of a United States Food and Drug Administration managed risk evaluation 
and mitigation strategy; 
(7) Emptied syringes or emptied medical devices or the component parts or 
accessories of those products or devices; 
(8) Drugs that are used solely in a clinical setting; and  
(9)  Dialysate drugs required to perform home kidney dialysis.
E.  "Packaging material" means the material used for or associated with the 
containment, protection, delivery, presentation or distribution of a covered product at 
the time the covered product is received by the consumer of the covered product at a 
retail location in the State or at the consumer's residence in the State.  "Packaging 
material" does not include material: 
(1) That is a beverage container, as defined in section 3102, subsection 2 and 
subject to the requirements of chapter 33, or other material used for or associated 
with the containment, protection, delivery, presentation or distribution of the 
beverage container;
(2) That is a reusable food service container;
(3) That is used exclusively for transporting a covered product between entities 
within the supply chain of the product that do not provide the product to its ultimate 
consumer and that is not used for the containment, protection, delivery, 
presentation or distribution of the covered product at the time the product is 
received by the consumer of the covered product;
(4) That is used for the containment, protection, delivery, presentation or 
distribution of a drug, as that term is defined in paragraph D, that is collected under 
a stewardship program in the State that has been approved for operation by the 
department and has been established to collect and dispose of such drugs;  
(5) That is used for the containment, protection, delivery, presentation or 
distribution of a drug, as that term is defined under Section 321 of the Federal 
Food, Drug, and Cosmetic Act, as regulated by the United States Food and Drug 
Administration under the Federal Food, Drug, and Cosmetic Act; 
(6)  That is a medical device or a biological product, or is used for the containment, 
protection, delivery, presentation or distribution of a medical device or a biological 
product, as regulated by the United States Food and Drug Administration under 21 
Code of Federal Regulations, Parts 200, 300 and 800; 
(7)  That is used for the containment, protection, delivery, presentation or 
distribution of an over-the-counter human drug product for which tamper-evident 
packaging is required, as regulated by the United States Food and Drug 
Administration under 21 Code of Federal Regulations, Section 211.132;
(8)  That is used for the containment, protection, delivery, presentation or 
distribution of a substance regulated by the United States Consumer Product Safety 
Commission pursuant to the federal Poison Prevention Packaging Act of 1970 for 
which special packaging is required under 16 Code of Federal Regulations, Part 
1700;
(9) That is used for the containment, protection, delivery, presentation or 
distribution of a substance that is a hazardous waste as defined in 40 Code of 
Federal Regulations, Part 261, Subparts C and D;
(10)  That is intended to be used on an ongoing basis for the long-term 
transportation, storage or protection of a durable product;
(11)  That is used for the containment, protection, delivery, presentation or 
distribution of a product regulated under the Federal Insecticide, Fungicide and 
Rodenticide Act;
(12)  That is used in the shipment of hazardous materials and that:
(a)  Pursuant to the federal packaging material specifications under 49 Code of 
Federal Regulations, Section 178.509 or 178.522 may not be manufactured 
using used material;
(b)  Is subject to the testing standards set forth in 49 Code of Federal 
Regulations, Part 178, Subpart M; or
(c)  Is subject to United Nations publication titled Recommendations on the 
Transport of Dangerous Goods, or successor publication;
(13)  That is used for the containment, protection, delivery, presentation or 
distribution of a product for which the signal word "danger" or "poison" is required 
to be included on the product's label pursuant to the Federal Hazardous Substances 
Act, 15 United States Code, Chapter 30; or
(14)  That, by design, and as a result of the anticipated use by a consumer of the 
material or the product the material contains or protects, becomes unsafe or 
unsanitary to recycle.
F.  "Packaging stewardship fund" or "fund" means the fund established and managed 
by a stewardship organization pursuant to subsection 5.
G.  "Packaging stewardship organization" or "stewardship organization" means a 3rd-
party entity established by one or more responsible parties pursuant to subsection 2 to 
operate a packaging stewardship program.
H.  "Packaging stewardship program" or "program" means a program implemented 
under this section by a stewardship organization to assess and collect payments from 
participating responsible parties in accordance with subsection 4 and to use such 
collected payments for the purposes described in subsection 6.
I.  "Performance goal" means a goal identified pursuant to subsection 3, paragraph A, 
subparagraph (8) to measure a packaging stewardship program's progress in achieving 
waste reduction, reuse and recycling improvements for each type of covered product 
managed under the program.
J.  "Recyclable" means, with respect to a covered product, that the covered product or 
its associated packaging material meets the criteria and standards for recyclability as 
determined pursuant to subsection 3, paragraph A, subparagraph (4).
K.  "Recycling" has the same meaning as in section 1771, subsection 7.
L.  "Recycling access rate" means the percentage of households in the State that have 
access to combined waste disposal and recycling services.
M.  "Recycling and recovery best practice standards" means the requirements and 
standards identified in the plan proposed pursuant to subsection 3, paragraph A, 
subparagraph (6).
N.  "Recycling rate" means, with respect to a covered product, the percentage of the 
total amount by weight of that covered product that is discarded in the State and 
considered usable or marketable.
O.  "Responsible party" means, with respect to a covered product using packaging 
material:
(1) The person that manufactures the covered product using packaging material 
under the person's own brand and sells, offers for sale or distributes for sale direct 
to consumers the covered product and packaging material in or into the State;
(2) If there is no person to which subparagraph (1) applies, the person that is the 
licensee of the trademark, whether registered in the State or unregistered, under 
which the covered product using packaging material is used in a commercial 
enterprise or is sold, offered for sale or distributed to consumers for sale in or into 
the State; or
(3) If there is no person to which subparagraphs (1) or (2) apply, the person that 
imports the covered product using packaging material into the State for sale, 
offering for sale or distribution to consumers for sale in or into the State.
P.  "Reusable" means, with respect to a covered product, that the covered product or 
its associated packaging material is capable of and designed to be reused or refilled 
and:
(1) A program is available to residents of the State that allows for the collection 
and reuse or refilling of the covered product or packaging material; or
(2) Facilities or other products are available to residents of the State that allow a 
resident to reuse or refill the covered product or packaging material so that it may 
be reused in a manner similar to the intended use of the original covered product 
or for a purpose similar to its original purpose.
2.  Formation of stewardship organization.  On or before October 1, 2023, each 
responsible party, individually or collectively with other responsible parties, shall submit 
to the department a proposal to establish a stewardship organization in accordance with the 
requirements of this subsection.
A.  A stewardship organization proposal under this subsection must:
(1) List the responsible parties that have collectively decided to establish the 
stewardship organization to manage a packaging stewardship program on their 
behalf;
(2) Describe how the stewardship organization will be designed to successfully 
operate a packaging stewardship program in the State to collect payments from 
responsible parties, distribute funding to eligible entities and otherwise administer 
the program in accordance with this section;
(3) Describe how the stewardship organization will establish a state stewardship 
plan committee to conduct a statewide recycling needs assessment and to develop 
a stewardship program plan for submission to the department pursuant to 
subsection 3.  
(a)  The committee described in this subparagraph must include, at a minimum, 
representation from responsible parties, manufacturers of packaging material, 
retailers, municipalities, waste and recycling collectors and transporters, 
recycling and composting facilities and other entities, which may include 
consultants.
(b) The statewide recycling needs assessment described in this subparagraph 
must, at a minimum, include an evaluation of:
(i) Current funding needs affecting recycling access and availability in the 
State;
(ii) The capacity, costs and needs associated with the collection and 
transportation of recyclable material in the State;
(iii) The processing capacity, market conditions and opportunities in the 
State and regionally for recyclable and compostable material; and
(iv) Consumer education needs in the State with respect to recycling and 
composting and with respect to reducing contamination in collected 
recyclable and compostable material; and
(4) Describe how the stewardship organization will establish a state recycling 
program committee to provide input regarding the plan to be submitted for 
department approval under subsection 3 and regarding the operation of the program 
implemented by the stewardship organization under this section.  
(a) The stewardship organization shall invite the commissioner or the 
commissioner's designee to be a member of the committee described in this 
subparagraph.
(b) The committee described in this subparagraph shall include, at a minimum, 
an individual with expertise in the development of recycling markets, the 
operator of a recycling facility, a representative of a regional waste 
management and recycling organization, a representative of the composting 
industry, a representative of a nonprofit environmental advocacy organization, 
an individual with expertise in consumer education and an individual with 
expertise in advanced recycling technology.
B.  After reviewing a proposal submitted under this subsection to determine whether 
the proposal meets the requirements of this subsection, the department shall within 60 
days of receipt of the proposal approve the proposal, approve the proposal subject to 
certain modifications or reject the proposal.  If the department rejects a proposal 
submitted under this subsection, it shall provide in writing to the person that submitted 
the proposal a description of the basis for its decision and the person may within 30 
days of receipt revise and resubmit the proposal to the department for review; the 
department shall review and approve or reject the revised proposal within 30 days of 
receipt.  The department may approve the establishment of more than one stewardship 
organization based upon the proposals submitted under this subsection.
C.  A responsible party may satisfy the requirements of this section by joining a 
stewardship organization already approved by the department under this section.
3.  Submission of plan; implementation; annual update.  On or before October 1, 
2024, a stewardship organization approved by the department pursuant to subsection 2 shall 
submit to the department a plan for the establishment of a packaging stewardship program 
that meets the requirements of this subsection.
A.  A stewardship program plan under this subsection must:
(1) Include contact information for the stewardship organization;
(2) Include a list of the responsible parties participating in the stewardship 
organization;
(3) List the brands of covered products and types of packaging material sold, 
offered for sale or distributed for sale to consumers in or into the State by each 
responsible party participating in the stewardship organization;
(4) Propose criteria and standards to be used to determine the recyclability of 
packaging material under the program.  Such standards and criteria must be 
consistent with applicable national and international recyclability standards 
including, but not limited to, relevant standards adopted by ASTM International or 
the International Organization for Standardization, or successor organizations;
(5) Include the results of the statewide recycling needs assessment conducted by 
the state stewardship plan committee established by the stewardship organization 
pursuant to subsection 2, paragraph A, subparagraph (3);
(6) Propose recycling and recovery best practice standards that are designed to 
support the performance goals described in subparagraph (8).  The stewardship 
organization shall demonstrate how the development of the standards involved 
input from the state stewardship plan committee and the state recycling program 
committee established pursuant to subsection 2, paragraph A, subparagraphs (3) 
and (4), respectively.  The plan must include a description of how the stewardship 
organization will determine compliance with those standards by eligible entities as 
a condition of receiving funding under subsection 6.  The standards under this 
subparagraph must include:
(a) Minimum standards designed to ensure access to recycling and composting 
collection or drop-off for residents of the State;
(b) Minimum technology standards for use by materials recovery facilities and 
recycling facilities in the State;
(c) Minimum standards for the types of packaging material that will be 
accepted for recycling under the program; and
(d) Wage and safety improvement plans for individuals working at or under 
municipal recycling and composting sites or programs;
(7) Include a description of how the stewardship organization intends to provide 
technical assistance to municipalities with fewer than 2,500 residents in complying 
with the standards under subparagraph (6) in order to receive funding in accordance 
with subsection 6.  A stewardship organization may suspend the assistance 
described in this subparagraph when the distributions required under subsection 6 
exceed the stewardship organization's anticipated annual budget or at such time as 
the stewardship organization determines that more than 50% of the municipalities 
described in this subparagraph are able to comply with the standards adopted by 
the stewardship organization pursuant to subparagraph (6);
(8) Propose statewide performance goals for each type of packaging material to be 
managed under the program, which must be designed to be achieved within 5 years 
from the date the plan is approved, be technologically and commercially feasible, 
support the State's solid waste management hierarchy under section 2101 and 
include goals for:
(a) Achievement of a statewide recycling rate, recycling access rate, 
composting rate, contamination rate, waste reduction rate and alternative 
material recovery rate;
(b) Recycling quality standards as measured using total commodity revenue, 
recycled material content use standards, recyclable packaging design 
standards, greenhouse gas emissions reductions standards and a highest and 
best use standard for recyclable material; and 
(c) Any other standards, rates or other measures for achieving environmental 
improvement;
(9) Include a description of the method by which the stewardship organization will 
measure its progress toward achievement of the goals described in subparagraph 
(8), to be implemented no later than one year from the date that the plan is 
approved;
(10) Include a description of the method by which the stewardship organization 
will determine the fees to be paid by each responsible party consistent with the 
requirements of subsection 4;
(11) Include a description of the procedures and methodology to be established by 
the stewardship organization, in consultation with the state stewardship plan 
committee established pursuant to subsection 2, paragraph A, subparagraph (3), for 
the distribution of funding pursuant to subsection 6; and   
(12) Include any other information required by the department that is necessary for 
the department to evaluate the performance goals identified by the stewardship 
organization under this subsection. 
B.  After reviewing a plan submitted under this subsection to determine whether the 
plan meets the requirements of this subsection, the department shall approve the plan, 
approve the plan subject to certain modifications or reject the plan.  If the department 
rejects a plan submitted under this subsection, it shall provide in writing to the 
stewardship organization a description of the basis for its decision and the stewardship 
organization may revise and resubmit the plan to the department for review.
C.  If the department approves a plan submitted under this subsection, the stewardship 
organization that submitted the plan shall implement the program proposed in the plan 
no later than January 1, 2025, unless a later implementation date is approved by the 
department. 
D.  On or before October 1, 2025, and annually thereafter, a stewardship organization 
that implemented a plan approved under this subsection shall update the plan as 
necessary to reflect any program changes or other information required by this section 
or by the department and resubmit the plan to the department for approval in 
accordance with the requirements of this subsection.  At the time that a stewardship 
organization submits an updated plan to the department pursuant to this paragraph, the 
stewardship organization shall also report to the department a summary of program 
activities, including relevant data, for the prior calendar year.
4.  Responsible party fees; fee adjustments.  Responsible parties participating in a 
stewardship program shall annually pay to the stewardship organization operating the 
program the fees required under this subsection.
A. The stewardship organization shall annually determine the anticipated annual 
budget for the stewardship organization necessary to manage the program and to 
achieve progress toward the performance goals adopted pursuant to subsection 3, 
paragraph A, subparagraph (8).  In determining the budget under this paragraph, the 
stewardship organization shall consider the results of the statewide recycling needs 
assessment conducted by the state stewardship plan committee pursuant to subsection 
2, paragraph A, subparagraph (3).
B. The stewardship organization shall adopt a fee schedule for determining the amount 
of the fee to be paid annually by each responsible party that is designed to cover all 
costs associated with:
(1) Implementation of a plan approved under subsection 3, including any 
associated administrative costs incurred in that implementation by a responsible 
party or the stewardship organization;
(2) The distributions required under subsection 6; and
(3) The fees the stewardship organization is required to pay to the department 
pursuant to subsection 7, paragraph A.
C.  The fee schedule adopted by the stewardship organization pursuant to paragraph B 
must allow a responsible party to pay an annual fee determined using the responsible 
party's annual national sales figures that are attributable to the State as calculated on a 
per capita basis.
D. Following the initial implementation of a plan approved under subsection 3, when 
directed by the stewardship organization, each responsible party shall annually pay to 
the stewardship organization the required fee based on the fee schedule adopted under 
paragraph B, which the stewardship organization shall deposit into the fund established 
under subsection 5.
E. The stewardship organization may accept but may not require payments from 
responsible parties in the calendar year prior to the calendar year in which a plan 
approved by the department is initially implemented to cover the stewardship 
organization's costs of developing the plan and implementing the program.  In the event 
that a responsible party makes such a prospective payment to the stewardship 
organization prior to initial program implementation, the stewardship organization 
shall reduce the fee owed by that responsible party during the first calendar year of 
program operation pursuant to this subsection by an amount equal to the amount of the 
prospective payment.
F. If a responsible party can demonstrate to the satisfaction of the stewardship 
organization that the packaging material associated with a covered product sold, 
offered for sale or distributed for sale in or into the State by the responsible party 
achieved an 80% or greater recycling rate in the State during the prior calendar year, 
the stewardship organization may reduce the fees owed by the responsible party under 
this subsection to an amount that represents no more than the costs associated with the 
transportation for recycling in the State of that packaging material.
G. Beginning during the 5th year of program implementation, unless an earlier date is 
agreed upon by the stewardship organization and the state stewardship plan committee 
established pursuant to subsection 2, paragraph A, subparagraph (3), the stewardship 
organization may propose for adoption as part of an updated plan submitted under 
subsection 3, paragraph D a schedule of fee adjustments for packaging material.  In 
developing such a schedule of fee adjustments, the stewardship organization shall 
consider as a basis for proposing favorable fee adjustments the following factors:
(1) Achievement of recyclability of packaging material that was previously not 
considered recyclable;
(2) Increased use of post-consumer recycled content in packaging material;
(3) Achievement by packaging material of the requirements of ISO 18602:2013, 
the methodologies and procedures for optimization of the packaging system 
published by the International Organization for Standardization, or successor 
publication;
(4) Demonstration of greenhouse gas emissions reductions relating to the use of a 
packaging material type associated with a covered product as compared to a 
previously used packaging material type or as compared to a packaging material 
type commonly used for similar products; or
(5) Achievement of significant reduction in food waste generation or product 
breakage relating to the use of a packaging material type associated with a covered 
product as compared to a previously used packaging material type or as compared 
to a packaging material type commonly used for similar products.
H. Nothing in this section prohibits a stewardship organization from establishing and 
requiring by private agreement or contract the payment of other fees associated with a 
covered product's supply chain by 3rd parties that are not responsible parties. 
5. Packaging stewardship fund. In accordance with the provisions of this subsection, 
a stewardship organization shall establish and manage a packaging stewardship fund. The 
stewardship organization shall deposit into the fund all payments received from responsible 
parties pursuant to subsection 4 and shall distribute from the fund payments authorized 
pursuant to subsection 6.  
A. In addition to the distributions authorized pursuant to subsection 6, the stewardship 
organization may expend from the fund those payments necessary to cover the 
stewardship organization's reasonable operating expenses and administrative costs.
B. In establishing the fund under this subsection, the stewardship organization shall 
ensure that, in the event that the stewardship organization ceases to exist or the 
department withdraws its approval for the program that the stewardship organization 
had previously implemented, the funds within the fund remain within the fund until 
they can be transferred to a successor stewardship organization or the department 
approves the stewardship organization's continued operation of the program.
6. Payments to support operational recycling costs; recycling improvement 
grants.  In accordance with the provisions of this subsection, a stewardship organization 
shall distribute from the fund payments to support the operational recycling costs of eligible 
entities and grants to improve recycling infrastructure in the State.
A. Based on the statewide recycling needs assessment under subsection 3, paragraph 
A, subparagraph (5) and considering the performance goals established pursuant to 
subsection 3, paragraph A, subparagraph (8), the stewardship organization shall 
annually determine the amount of funds anticipated to be available within the fund 
under subsection 5 for distribution pursuant to this paragraph to offset certain 
operational recycling costs incurred by eligible entities.
(1) For the purposes of this paragraph, an eligible entity is a municipality, a refuse 
disposal district under chapter 17 or a regional association in the State that:
(a) Demonstrates to the satisfaction of the stewardship organization that the 
entity has complied with or achieved measurable progress toward complying 
with the recycling and recovery best practice standards adopted pursuant to 
subsection 3, paragraph A, subparagraph (6); 
(b) Reports to the stewardship organization in a manner prescribed by the 
organization the amount of packaging material it collected, processed and 
recycled or composted during the prior calendar year; and
(c) As directed by the stewardship organization, provides any other 
information necessary for the stewardship organization to calculate for that 
entity the distributions described in subparagraph (2). 
If a municipality, refuse disposal district or regional association contracts with a 
private entity for the collection, transportation, processing and recycling of 
packaging material, the stewardship organization shall consider the private entity 
to be an eligible entity under this subparagraph and, as appropriate, shall distribute 
the amounts calculated pursuant to subparagraph (2) to that private entity as long 
as the private entity meets the requirements of divisions (a) to (c).
(2) The stewardship organization shall annually distribute to each eligible entity 
the following amounts:
(a) A fixed amount for each ton or a per capita amount for packaging material 
recycled by the entity in the prior calendar year based upon the average costs 
associated with the transportation, from a central location within a 
municipality, of collected packaging material from the municipality to a 
recycling facility; the processing of and removal of contamination from 
packaging material by a recycling facility; and the recycling or composting of 
packaging material in the State or in another jurisdiction less the average fair 
market value in the State for that packaging material.  In determining costs 
under this division, the stewardship organization may not include costs 
associated with the landfill disposal of packaging material, except for costs 
associated with the landfill disposal of contaminated materials removed from 
collected packaging material; and 
(b) An additional fixed amount for each ton or a per capita amount for 
packaging material that is not considered recyclable pursuant to this section 
that are recycled, composted or otherwise diverted from landfill disposal by 
the entity in the prior calendar year less the average fair market value in the 
State for that packaging material.
B.  Based on the statewide recycling needs assessment described pursuant to subsection 
3, paragraph A, subparagraph (5) and considering the performance goals established 
pursuant to subsection 3, paragraph A, subparagraph (8), the stewardship organization 
shall annually determine the amount of funds anticipated to be available within the 
fund under subsection 5 for distribution pursuant to this paragraph in the form of grants 
to eligible entities to support improvements in recycling infrastructure.
(1) For the purposes of this paragraph, an eligible entity is a municipality, a refuse 
disposal district under chapter 17, a regional association or a private entity in the 
State that:
(a) Submits a grant proposal to the stewardship organization designed to 
improve recycling infrastructure in the State;
(b) Describes in the grant proposal under division (a) how the grant will 
promote compliance with the recycling and recovery best practice standards 
adopted pursuant to subsection 3, paragraph A, subparagraph (6); and
(c) As directed by the stewardship organization, provides as part of the grant 
proposal under division (a) all other information necessary for the stewardship 
organization to evaluate the proposal.
(2)  Subject to the availability of funds as determined under this paragraph, after 
annually soliciting grant proposals under this paragraph from eligible entities and 
reviewing all such grant proposals received, the stewardship organization shall 
distribute grants to fund those proposals, or a portion of those proposals, based on 
the following order of priority:
(a) Proposals designed to support or improve end market development 
programs or infrastructure in the State;
(b) Proposals designed to support or improve recyclable material sorting or 
processing technology or infrastructure in the State;
(c) Proposals designed to support or improve advanced recycling technology 
or infrastructure in the State;
(d) Proposals designed to support or expand composting infrastructure in the 
State; and
(e) Proposals designed to increase consumer education in the State regarding 
accessing recycling infrastructure and reducing contamination in recycling.
C. In consultation with the state stewardship plan committee established pursuant to 
subsection 2, paragraph A, subparagraph (3), the stewardship organization shall adopt 
methods for the reporting or submission of the information required to obtain eligibility 
for the distributions under paragraph A or the grants under paragraph B that are not 
unduly burdensome on the entities that may be reporting or submitting that 
information.  As determined pursuant to subsection 3, paragraph A, subparagraph (7), 
if the stewardship organization has elected to provide technical assistance in complying 
with the requirements of this subsection to municipalities with fewer than 2,500 
residents, the stewardship organization shall establish procedures or programs to 
facilitate the provision of that technical assistance.
7.  Administration and enforcement; rulemaking; fees; report.  The department 
shall administer and enforce this section and may adopt rules as necessary to implement 
this section.  Rules adopted pursuant to this subsection are routine technical rules as defined 
in Title 5, chapter 375, subchapter 2-A. 
A.  At the time that a stewardship organization submits a plan to the department 
pursuant to subsection 3 to initially establish a stewardship program, and annually 
thereafter, the department shall require the stewardship organization to pay to the 
department a reasonable annual fee established by the department, not to exceed 
$300,000, to cover the department's actual costs for review of the plan and the costs in 
the prior fiscal year for the department's oversight, administration and enforcement of 
the program implemented by the stewardship organization pursuant to this section.  At 
the time that one or more responsible parties submit a proposal to the department 
pursuant to subsection 2 to establish a stewardship organization, the department shall 
require the payment of a reasonable one-time fee to cover the department's actual costs 
for review of the proposal.
B. Beginning February 15, 2025, and annually thereafter, the department shall submit 
a report to the joint standing committee of the Legislature having jurisdiction over 
environment and natural resources matters regarding the packaging stewardship 
programs implemented pursuant to this section.  The report required under this 
paragraph may be included in the report required pursuant to section 1772, subsection 
1.
C. The department shall monitor actions at the federal level regarding the establishment 
of similar stewardship programs for covered products and shall include information 
regarding those actions in the report required under paragraph B.  If the department 
determines that legislation is enacted or programs are established at the federal level 
that achieve the goals of this section, the department shall recommend in the report 
required under paragraph B that this section be repealed or amended as necessary.
8. Antitrust exclusions. A responsible party or a stewardship organization, including 
a responsible party's or stewardship organization's officers, members, employees and 
agents that organize a packaging stewardship program under this section, is immune from 
liability for the responsible party's or stewardship organization's conduct under state laws 
relating to antitrust, restraint of trade, unfair trade practices and other regulation of trade or 
commerce only to the extent necessary to plan and implement the responsible party's or 
stewardship organization's packaging stewardship program consistent with the provisions 
of this section. 
9.  Preemption.  To ensure maximum effectiveness through uniform statewide 
application, beginning January 1, 2025, the State intends to occupy the whole field of 
regulation of stewardship programs for covered products and packaging material consistent 
with the provisions of this section. A local government may not adopt an ordinance 
establishing, requiring the establishment of or otherwise regulating stewardship programs 
for covered products and packaging material and, beginning January 15, 2025, any 
ordinance or regulation that violates this subsection is void and has no force or effect.
SUMMARY
This bill facilitates the establishment of one or more stewardship programs in the State 
for packaging material to be operated by a stewardship organization approved by the 
Department of Environmental Protection.  Under such a program, the plan for which must 
be approved by the department and annually updated following a department review, 
participating responsible parties that sell, offer for sale or distribute for sale in or into the 
State certain products contained, protected, delivered, presented or distributed in or using 
packaging material are required to pay fees related to the packaging material associated 
with those products.  
Responsible party payments received by a stewardship organization are used to offset 
operational recycling costs incurred by entities meeting certain eligibility requirements, 
which may include municipalities, refuse disposal districts and regional waste management 
associations in the State.  Responsible party payments are also used to fund grants to entities 
meeting certain eligibility requirements, which may include municipalities, refuse disposal 
districts, regional waste management associations and private entities in the State, to 
support improvements in recycling infrastructure in the State.