Environment and Natural Resources committee continue work on packaging legislation

The Environment and Natural Resources committee continues to work on LD 2104, An Act To Support and Increase the Recycling of Packaging, that would create a first in the nation extended producer responsibility framework for the State of Maine.  On Thursday, March 5, Sen. Brownie Carson (D-Cumberland) presented an amendment that significantly altered the original proposal. The amendment proposed the following changes to the original legislation (http://www.mainelegislature.org/legis/bills/bills_129th/billtexts/HP150001.asp):

1. It amends the definition of “municipality” to include refuse disposal districts and regional associations.
   
2. It amends the definition of “producer” to remove inclusion of persons that sell, offer for sale, or distribute for sale in the State products in or using packaging material and that elect to fulfill the responsibilities of a producers. It also excludes from that definition nonprofit organization exempt from taxation under the United States Internal Revenue Code, Section 501(c)(3).
   
3. It amends the definition of “toxicity” to include reference to intentionally introduced chemicals regulated pursuant to the Maine Revised Statutes, Title 32, chapter 26-A.
   
4. It deletes the definition of “packaging stewardship plan” and makes a number of changes to the bill to remove the requirement that a stewardship organization contracted by the Department of Environmental Protection to operate the packaging stewardship program submit a program plan for approval. Instead, the amendment requires the department to adopt major substantive rules for the implementation, administration and enforcement of the packaging stewardship law, which will set the operational and other requirements for the packaging stewardship program. Those rules must be adopted prior the issuance by the department of a request for proposals for the operation of the packaging stewardship program by a stewardship organization. The amendment provides that such rulemaking must be initiated by December 31, 2021 and sets forth the scope and requirements of that rulemaking.
   
5. It removes from the bill the specific methods by which the stewardship organization is to calculate producer payments and participating municipality reimbursements, instead leaving the determination of such methods to department rulemaking.
   
6. It amends the bill in a number of places to require the stewardship organization to consider input from producers and municipalities in the development and operation of certain aspects of the packaging stewardship program.
7. It provides that prohibitions on the sale of products of producers not in compliance with the requirements of the packaging stewardship law take effect one calendar year following the effective date of the contract between the stewardship organization and the department. It also provides that producers are required to begin making payments to the stewardship organization 180 calendar days following the effective date of that same contract.
8. It provides that, to be eligible for reimbursement of costs as a participating municipality, a municipality is required to submit certain information to the stewardship organization and must provide for the collection and recycling of types of packaging material that are generated in the municipality and that are readily recyclable.
9. It clarifies the order of priority to be used by the stewardship organization in expending funds from the packaging stewardship fund, which includes the establishment of a reserve account to ensure full reimbursements to participating municipalities in future years.
10. It provides that the department determination of the types of packaging that are to be considered readily recyclable must include a transitional period between the time that a type of packaging material is determined to be readily recyclable and the time that such a determination will be effective for the purposes of determining producer payments and municipal reimbursements.
11. It provides an alternative method, to be specified in department rule, for a producer to report required information to the stewardship organization in the event that a producer fails to obtain sufficient information regarding the characteristics of the packaging material it sells, offers for sale or distributes for sale in the State.
12. It amends the small producer exemption to increase the gross revenue threshold from $1,000,000 to $2,000,000; to remove the exemption based on a producer conducting all sales in the State at a single point of retail sale; and to include an exemption for a producer that employs in total 10 or fewer employees.

 
Having just received the amendment that day, the committee voted to table the bill so members could further review the proposed changes. The committee will continue to work the bill during the next several weeks, and we will keep you updated on the changes and proposals that are made. If you have any questions, please contact Ben Gilman by calling (207) 623-4568, ext. 111, or by emailing bgilman@mainechamber.org.