Virginia House Bill 918 (2022) - (Failed)

Covered materials and products include any package or package category used for containment, protection, handling, delivery, presentation, and distribution of a product. This includes products sold over the internet and at the point of sale to a consumer.

Covered Products does not include packaging used for long-term storage and protection of a durable product for a minimum of 5 years, beverage containers, or architectural paint containers. Other exclusions may be adopted by the Department.

Producer is defined as person that manufactures a covered material or product under own their own brand and sells, offers, or distributes covered materials or products in the state.

Producer also includes a person that imports a covered material or product as an owner or licensee of a trademark or brand, and sells or distributes in the state.

Producer also includes a person that sells, offers for sale, or distributes covered material in the state

Producers who generate less than $2 million in gross revenue during the prior calendar year to 2023 or 2024, and less than $5 million in gross revenue prior to calendar year 2025 and later are excluded from the definition of producer. Producers who generate less than 1 ton of covered materials or products into the state in the previous calendar year are also excluded. Producers who producer realized more than 50% of total gross revenue in the prior calendar year from the sale of goods acquired through insurance salvages, closeouts, bankruptcies, or liquidations are excluded from the definition of producer. In addition, producers who primarily sell, offer for sale, or distribute either through retailers or direct to consumers perishable food that uses less than 15 tons of covered materials are excluded.

Nonprofit organizations are excluded from the definition of producer.

Producers must participate in a Stewardship Organization that contracts with the Department to administer the provisions of the program plan.

The producers are responsible for all financial costs of the program. The Stewardship Organization will reimburse municipalities through the Packaging Stewardship Fund who choose to participate in the program. The stewardship organization can provide an alternative collection program to partially or fully offset the amount of fees owed by a producer.

Funds will be used for disbursing funds to participating municipalities.

Funds will be used for recycling education by the department or the stewardship organization.

Funds will be used for covering the operating costs of the Department and, if appropriate, the stewardship organization in administering the Program.

Funds will be used for covering investments in recycling infrastructure and recycling education by the Department or by the stewardship organization.

Producers pay an annual fee to the the Department that is deposited into the Packaging Stewardship Fund based on the net amount of each type of packaging material sold, offered for sale, or distributed for sale by the producer and not otherwise managed by the producer under an approved alternative collection program.

Fees will be based on net weight or volume in addition to whether or not the packaging material is readily recyclable or not readily recyclable.

Fees of the Stewardship Organization will take into account whether a type of packaging material is readily recyclable or not readily recyclable.

Starting January 1, 2023 producers must pay an annual fee to the department.

The state treasury will create a Packaging Stewardship Fund. The fees from producers will be paid into this fund. Funds will be used for disbursing funds to participating municipalities, covering the operating costs of the Department and, if appropriate, the stewardship organization in administering the Program, and investments in recycling infrastructure and recycling education by the Department or by the stewardship organization.

The Department or the stewardship organization shall conduct a statewide recycling needs assessment. The assessment will evaluate funding needs for recycling access, capacity and costs associated with the collection and transportation of recyclable material, the processing capacity and market conditions, opportunities for recycled materials, and consumer education needs related to contamination.