Vermont Senate Bill 236 (2022) - (Failed)

Packaging is defined as any containers or materials used for the containment, protection, handling, delivery, and presentation of goods. The term packaging includes: Packaging intended for the consumer market, service packaging used or filled at the point of sale (carry-out bags, bulk good bags, delivery food service packaging), secondary packaging used to group products for multi-unit sale, tertiary packaging used for transportation or distribution directly to a consumer, additional elements attached to a product for display function, and single-use food service ware including plates, cups, bowls, pizza boxes, cutlery, and others that is intended for one time use and sold to a retailer and a dine-in or take-out food establishment.

Paper product is defined as non-packaging paper that is printed with text or graphics or intended to be printed with text or graphics as a medium for communicating information. Paper product includes: newsprint and inserts, magazines and catalogs, paper used for copying, writing, or other general use, telephone directories, flyers, brochures, and booklets.

The term packaging does not include containers or materials that are used for the long-term protection or storage of a product with a life of not less than five years. Beverage containers already subject to regulation are also excluded. Printed material does not include a bound book. The term covered material does not mean packaging or paper products that could become unsafe or unsanitary to recycle due to anticipated use or intended for reuse for a similar purpose.

The program includes coverage for any person who presents for collection any amount of covered materials to a stewardship organization implementing an approved producer responsibility plan.

The term producer is defined by a tiered list based on priority of responsibility for covered products. If the item is sold in packaging under a manufacturer’s own brand or is sold in packaging that lacks identification of a brand, the producer of the packaging is the person that manufactures the packaged item. This also applies to paper products and printed materials. The person that manufactures the printing and writing paper under the person’s own brand is the producer.

In the absence of a brand, the producer is the individual who is the licensee of a brand or trademark under which a packaged item is used in a commercial enterprise, sold, offered for sale or distributed in or into Vermont, whether or not the trademark is registered in the state. This also applies to paper products and printed materials. The owner or licensee of a brand or trademark under which the printing and writing paper is used in a commercial enterprise, sold, offered for sale, or distributed in or into Vermont, whether or not the trademark is registered in the state.

In the absence of a brand or licensee, the producer of the packaging is the person that imports the packaged item into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in Vermont. This also applies to paper products and printed materials. The person that imports the printing and writing paper into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the printing and writing paper in Vermont is the producer.

De minimis producers, or small businesses, are excluded. These are defined as producers that annually sell, offer for sale, distribute, or import into the country for sale in Vermont less than one ton of covered products each year or covered products that in aggregate generate less than $1 million each year in revenue.

All responsible parties of covered materials must join a stewardship organization. If multiple stewardship organizations register, the stewardship organizations shall coordinate and submit one program plan. The multiple stewardship organizations may form a third-party entity to implement the requirements for all member stewardship organizations.

The responsible parties are responsible for all financial costs of the program. The stewardship organization must provide a reasonable reimbursement rate to service providers for collection of recyclable covered materials. The bill does not specify whether that is municipal or private service providers.

The program plan will include details on how the stewardship organization will fund the collection of covered materials for recycling and the processing of covered materials for recycling.

The program plan will include details on how the stewardship organization will fund education and outreach.

The program plan will include details on how the stewardship organization will fund the implementation and administration of the plan.

The program plan will include details on how the stewardship organization will fund litter abatement, minimization, and clean up of covered materials.

The program plan will include details on how the stewardship organization will fund research and development to improve markets and infrastructure.

The program plan must include funding mechanisms that must be developed in an environmentally sound manner that encourages the use of design attributes that reduce the environmental impacts of covered products, such as through the use of eco-modulated fees.

The bill suggests eco-modulated fees to encourage designs intended to increase post-consumer recycled content.

The bill suggests eco-modulated fees will take life-cycle analysis of covered materials into consideration.

The bill suggests eco-modulated fees to encourage designs intended to facilitate reuse.

The bill suggests eco-modulated fees based on the recyclability of the covered material.

The stewardship organization will reduce all covered material to the maximum extent practicable and no less than 25% by January 2035. Source reduction will be determined from a baseline year established by the stewardship organization and current source reduction accomplishment by producers.

The program plan shall establish performance goals for covered materials under the plan. Goal categories will include postconsumer content goals, recovery rate goals for covered materials, recyclability and recycling rate goals, packaging reduction goals, compost access or compost rate goals, if applicable, and contamination reduction rate goals, greenhouse gas reduction goals, a goal for reusable packaging; and any other goal that demonstrates positive environmental improvement and is justified in the stewardship plan.

A stewardship organization must file a registration form with the state beginning on July 1, 2023 and on an annual basis after that.

A stewardship organization representing responsible parties must submit a producer responsibility plan before July 1, 2024.

The Secretary will review and approve or deny program plans.

At the end of each year a stewardship organization implementing a program plan must submit an annual report.

At the end of each program year the stewardship organization must submit an annual report to the secretary.

The stewardship organization is responsible for an education and outreach program that includes how labels will be used to educate consumers about proper end-of-life management of covered materials and how labeling will improve over time, including the creation of consistent labeling standards.

The stewardship organization is responsible for an education and outreach program that includes what materials are recyclable and any special handling considerations associated with covered materials.

The stewardship organization is responsible for an education and outreach program that includes a website and consistent statewide messaging to notify the public that there is a collection and recycling program for covered materials.

The Packaging and Paper Product Stewardship Program Advisory Council will provide nonbinding advice to the Secretary and responsible parties or stewardship organizations in the drafting or amendment of a program plan and oversee and provide recommendations for the implementation of a program plan.

A Packaging and Paper Product Stewardship Program Advisory Council will be created to provide advice to the state and responsible parties or stewardship organizations in the development of a program plan and to oversee and provide recommendations for the implementation of a program plan. The Advisory Council will be composed of 21 members appointed by the state and equitably representing all supply chain participants in the recycling system. Members of the Advisory Council must include the following:

1. One individual representing the PRO, who will represent a consumer brand or other responsible party.
2. Two individuals representing manufacturers of covered materials or national associations of packaging producers.
3. Two individuals representing manufacturers of post-consumer material or associations representing them.
4. Two individuals representing manufacturers of virgin covered materials or associations representing suppliers of substrates of covered materials.
5. Two individuals representing material recovery facilities in Vermont, one of whom shall represent public facilities and one of whom shall represent private facilities.
6. Two individuals representing waste haulers, one of whom shall represent large haulers and one of whom will represent small haulers.
7. Two individuals representing county or municipal government waste management programs.
8. Two individuals representing a retailer or statewide association representing retailers.
9. One individual representing a statewide environmental organization.
10. One individual representing a community-based organization or an organization representing equity and underrepresented stakeholders.
11. One individual representing a privately owned transfer station or drop-off center that collects recyclables from the public.
12. One individual representing a publicly owned transfer station or drop-off center that collects recyclables from the public.
13. At the discretion of the Secretary, two open seats, to which the Secretary may appoint additional, rotating advisory council members.

The bill defines "recyclable" to mean covered materials that can be sorted by entities processing recyclables to be used in the production of materials or products.

"Reusable is defined as covered materials that meets both of the following requirements:

(A) Is technically feasible to reuse for its original purpose by the consumer, is capable of being refilled with materials available to the consumer, or is collected and refilled by the producer.
(B) Is reusable or refillable for an appropriate number of cycles depending on the material, but not less than 100 cycles."

Once every five years, a stewardship organization shall hire an independent third party to audit the stewardship organization’s program plan and implementation of the plan.