New Hampshire Legislative Service Requests (LSR's)

HB 1636-FN - AS INTRODUCED

2024 SESSION

24-2793

02/08

HOUSE BILL 1636-FN

AN ACT relative to creating the New Hampshire container deposit, refund, recycle, and reuse system.

SPONSORS: Rep. Dutzy, Hills. 6; Rep. Veilleux, Hills. 34; Rep. Parshall, Ches. 8; Rep. Brennan, Merr. 9

COMMITTEE: Commerce and Consumer Affairs

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ANALYSIS

This bill creates a New Hampshire container deposit, refund, recycle and reuse system. It establishes a producer responsibility organization (PRO) to implement a beverage container recycling redemption refund program to issue redemption refunds to consumers for beverage containers. It contains labeling requirements, establishes performance targets for the PRO, contains reporting requirements, requires the PRO to establish an Operations Advisory Committee and an Equity and Access Advisory Committee and contains provisions concerning reimbursement, enforcement, administration and other provisions.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-2793

02/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT relative to creating the New Hampshire container deposit, refund, recycle, and reuse system.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Beverage Container Recycling Redemption Refund Program. Amend RSA by inserting after chapter 149-R the following new chapter:

CHAPTER 149-S

BEVERAGE CONTAINER RECYCLING REDEMPTION REFUND PROGRAM

149-S:1 Definitions. In this chapter:

I. "Department" means the department of environmental services.

II. "Beverage" means any drinkable liquid intended for human oral consumption. "Beverage" does not include:

(a) A drug regulated under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.);

(b) Infant formula; or

III. "Beverage container" means a prepackaged container, such as a carton, pouch, or aseptic packaging which:

(a) Is made of any multimaterial or material, including, but not limited to, glass, plastic, or metal;

(b) Is designed to be used for beverage storage one or more times before being recycled; and

IV. "Beverage container processing mechanism" means any manual or technological means by which empty beverage containers are properly identified and processed.

V. "Beverage producer" means a person who bottles, cans, or otherwise fills beverage containers to sell to distributors, importers, or retailers.

VI. "Consumer" means a person who purchases a beverage container in the state for use or consumption.

VII. "Distributor" means a person, including, but not limited to, a beverage producer, who engages in the sale of beverage containers to a retailer in the state.

VIII. "Drop-off facility" means a specific area where individuals may bring household recyclable materials to be sorted into material-specific receptacles.

IX. "Importer" means a retailer or beverage producer who directly imports beverage containers into the state.

X. "Line defect" means a beverage container that becomes defective or damaged during manufacturing, is not meant for sale, and is not eligible for redemption.

XI. "Material recovery facility" means a facility that receives, separates, and sells or otherwise distributes postconsumer materials for recycling.

XII. "Member" means a distributor or importer who has joined the organization and paid all applicable fees.

XIII. "Nonprofit organization" means an organization established and operated as a nonprofit organization under section 501(c)(3) of the Internal Revenue Code of 1986.

XIV. "Organization" means the distributor and importer responsibility organization established under RSA 149-S:10.

XV. "Retailer" means a person or business in the state who engages in the sale of beverage containers to a consumer.

XVI. “Recycle” means the series of activities by which a beverage container is:

(a) Collected and processed; and

(b) Converted into a raw material with minimal loss of material quality; and

(d) Does not include

(1) The use of material to produce a fuel or fuel substitute;

(2) The use of material in an incineration process (e.g., waste-to-energy); or

(3) The use of material within the footprint of a landfill.

XVII. "Store" means an individual location where a retailer sells beverage containers.

149-S:2 Beverage Container Recycling Redemption Refund Program.

I. Except as otherwise provided in this section, each beverage container sold or offered for sale in the state shall have the following redemption refund value:

(a) Ten cents for a beverage container of 24 fluid ounces or less; and

(b) Fifteen cents for a beverage container of more than 24 fluid ounces.

II. The department is authorized to change each redemption refund value under paragraph I, by rule-making under RSA 541-A, so long as the changed refund value is not based on the type of postconsumer material being recycled, not more often than:

(a) Once during any 10-year period and in consultation with the organization; and

(b) Once during any 5-year period and after receiving a request from the organization for a change to one or both redemption refund amounts, if the department's change conforms with the organization's request.

III. Prior to any change in the redemption refund value under paragraph III, the department shall undergo a notice and comment review period with at least 60 days' notice to the public.

IV. If the redemption rate publicly reported by the organization under RSA 149-S:12 does not reach 80 percent for 2 consecutive calendar years after being required to do so under RSA 149-S:11, I(b), then each beverage container sold or offered for sale in the state shall have the following redemption refund value:

(a) Fifteen cents for a beverage container of 24 fluid ounces or less; and

(b) Twenty cents for a beverage container of more than 24 fluid ounces.

V. Any moneys designated for redemption refunds but that are not claimed by consumers shall be used by the organization to support its administrative costs and to perform the activities required under this chapter.

149-S:3 Material Flows.

I. When a consumer redeems a beverage container in accordance with this chapter, the organization becomes the owner of that beverage container and may:

(a) Sell it to a buyer of its choosing after first allowing beverage producers or a company in their beverage container supply chain to purchase the material at a fair market rate; or

(b) On its own or via a third party, process the beverage container for refill if it is reusable.

II. When a consumer chooses to put a beverage container in its curbside recycling receptacle or a drop-off receptacle, the operator of the material recovery facility that sorts the beverage container or the operator of the drop-off facility that receives the beverage container shall:

(a) Offer to sell the material to the organization, which then may be required to pay a certain percent of the redemption value per beverage container pursuant to RSA 149-S:14;

(b) Permit the organization to pick-up the material within a reasonable amount of time at the organization’s expense; and

(c) Report to the organization the weight in tons and the quality of the beverage containers it is transferring to the organization.

149-S:4 Means of Redemption.

I. At all stores that are 25,000 square feet or greater excluding only outdoor space, the organization at its expense shall install, operate, and maintain:

(a) Bulk bag drop-off for all redeemable beverage containers; and

(b) One or more beverage container processing mechanisms that allow for the consumer:

(1) To redeem all redeemable containers; and

(2) To immediately receive the refund value.

II. At all stores 25,000 square feet or greater excluding only outdoor space, the organization at its expense may install, operate, and maintain additional beverage container processing mechanisms beyond what is required in paragraph I.

III. At all its stores 25,000 square feet or greater excluding only outdoor space, the retailer shall make at most 1,000 square feet of space available for the organization to meet the requirement of paragraph I and the option provided for in paragraph II, but the retailer decides where at each store on space it controls inside or outside the store that the organization will install, operate, and maintain beverage container processing mechanisms.

IV. At all stores greater than 10,000 square feet and less than 25,000 square feet excluding only outdoor space, the organization at its expense shall install, operate, and maintain beverage container processing mechanisms such that:

(a) The consumer has the ability to redeem all redeemable beverage containers; and

(b) The consumer has the option to immediately receive the refund value.

V. At all stores greater than 10,000 square feet and less than 25,000 square feet excluding only outdoor space, the organization at its expense may install, operate, and maintain additional beverage container processing mechanisms beyond what is required in paragraph IV.

VI. At all its stores greater than 10,000 square feet and less than 25,000 square feet excluding only outdoor space, the retailer shall make at most 500 square feet of space available for the organization to meet the requirement of paragraph IV and the option provided for in paragraph V, but the retailer decides where at each store on space it controls inside or outside the store that the organization will install, operate, and maintain beverage container processing mechanisms.

VII. At all its stores that are more than 1,000 square feet or 10,000 square feet or less excluding only outdoor space, the retailer shall, upon the organization’s request, permit the organization to install, operate, and maintain beverage container processing mechanisms on space no more than 250 square feet that it controls inside or outside the store.

VIII. A retailer who operates a store 1,000 square feet or less has no requirements under this chapter to host a beverage container processing mechanism.

IX. Notwithstanding paragraphs I through VII:

(a) The retailer may make available more than the required space for beverage container processing mechanisms, and

(b) The organization may install, operate, and maintain more beverage container processing mechanisms on the additional space made available in subparagraph (a).

X. The department, in consultation with the organization and retailers, shall develop a formula to determine how to fairly compensate annually the retailer for use of the space at each store of the retailer that the retailer permits the organization to install, operate, and maintain beverage container processing mechanisms.

XI. Notwithstanding paragraphs I through IX, a retailer shall, upon request by the organization regarding a particular store of the retailer:

(a) Offer for sale at that particular store the standard bags that consumers shall use to redeem containers via the bulk bag drop-off redemption option; and

(b) Permit the organization to install, service, and operate a self-service kiosk that prints redemption vouchers inside or immediately outside of that particular

store.

XII. A retailer is exempt from the requirements of this section at stores the retailer operates that primarily prepares food for sale.

XIII. A retailer is exempt from the requirements of paragraphs I through IX at stores the retailer operates that primarily sell beverage containers to consumers through stand-alone vending machines, stand-alone refrigerator cases, or by similar means.

XIV. The department shall develop convenience standards that the organization shall follow that:

(a) Ensure every resident in the state lives a reasonable distance from one or more beverage container processing mechanisms that allow for convenient redemption of all redeemable beverage containers; and

(b) There are enough beverage container processing mechanisms at each store or location the organization operates to enable quick and easy redemption of redeemable beverage containers.

XV. The organization may enter into agreements to install, operate, and maintain additional beverage container processing mechanisms at any location that is not at a store considered in this chapter in order to provide additional convenient, quick, or easy redemption options, and to meet the performance targets required in RSA 149-S:11.

XVI. Any facility that the organization sets up in the state to efficiently aggregate, sort, and process the material collected at various redemption locations under this chapter:

(a) May accept, pursuant to a reasonable process the organization may establish, beverage containers eligible for redemption that are submitted in the organization's

standard redemption bag, as designated by the organization, by a nonprofit organization; and

(b) May provide a nonprofit organization with a premium to be determined by the organization.

XVII. The public shall have access to redeem beverage containers in accordance with this section for not less than 10 hours each day, except on federal, state, or local holidays and except at a facility set up by the organization to aggregate, sort, and process redeemed beverage containers.

XVIII. The organization shall provide information to the public detailing how consumers can alert the organization to problems at beverage container processing mechanisms operated by the organization. The information shall be provided via:

(a) The organization's website;

(b) Clearly visible signage at least 5 feet by 5 feet at each redemption location required under this Section; and

(c) Clearly visible signage at least 2 feet by 2 feet placed on or within 5 feet of each beverage container processing mechanism.

XIX. The organization may establish reasonable terms and conditions for the use of a beverage container processing mechanism.

149-S:5 Labeling Requirements.

I. A beverage producer, distributor, or importer shall include, anywhere that is clearly visible on the top or side of each beverage container sold by the beverage producer, distributor, or importer in the state, the abbreviation "RV".

II. The organization may require that any beverage producer, distributor, or importer include, on any space that is on the top or side of each beverage container sold in the state, the clearly visible abbreviation of the state and applicable redemption refund value under RSA 149-S:2.

III. A beverage producer, distributor, or importer may include a barcode or unique code verification on a beverage container to automatically identify it.

149-S:6 Timing.

I. A beverage container that is at least 90 percent aluminum, glass, high density polyethylene plastic, or polyethylene terephthalate and that is sold in the state shall be redeemable for the applicable redemption refund value under RSA 149-S:2 by no later than 18 months after the effective date of this chapter.

II. A beverage container not described under paragraph I and that is sold in the state shall be redeemable for the applicable redemption refund value under RSA 149-S:2 by no later than 3 years after the effective date of this chapter.

III. The department may permit up to an additional 365 days to meet the deadlines under paragraphs I and II.

149-S:7 Prohibitions.

I. No person shall distribute, import, or sell beverage containers in or into the State except in compliance with this chapter.

II. No person shall redeem a beverage container under this chapter that was not sold in the state to a consumer in the state.

149-S:8 Department Duties. On or before October 1 of each year after the effective date of this chapter, the department shall identify and communicate to the organization the department's total estimated annual cost to implement, administer, and enforce this chapter, including the cost of adopting rules under this chapter, in the next calendar year, after:

I. Subtracting the moneys that the department collected from penalties assessed under this chapter, which shall be put toward fulfilling the department's responsibilities under this chapter in the next calendar year; and

II. Adding any expenses incurred in fulfilling the department's responsibilities under this chapter that are not covered by the annual cost from the previous year.

149-S:9 Drop-off Facility and Material Recovery Facility Duties.

I. Each drop-off facility or material recovery facility operating in the state, or outside of the state if the majority of the material it processes comes from the state, may submit the following information to the organization:

(a) The amount in tons of residential recyclable material that the facility sold in the

previous calendar year; and

(b) An estimate of the amount in tons of residential recyclable material that the facility sold that came from the state.

II. The optional information detailed in paragraph I shall be submitted on or before April 1 and shall only pertain to the previous full calendar year.

149-S:10 Distributor and Importer Responsibility Organization.

I. All distributors and importers shall join as members of a distributor and importer responsibility organization. A distributor or importer operating in violation of this requirement is subject to penalties described in RSA 149-S:18. The organization shall be established and operated as a nonprofit organization or a cooperative corporation.

II. Only one organization may operate in the state. The organization may decide to operate jointly with similar organizations. The organization shall elect a governing board of directors of the organization comprised of organization members. The organization shall be led by an executive director elected by the board of directors of the organization.

III. The organization shall charge a membership fee that funds the organization's costs of operation minus unclaimed redemption refunds or any other revenue sources that the organization may develop. The organization shall charge membership fees that vary by material type and that reflect:

(a) The cost of collecting, transporting, sorting, and processing each beverage container type; and

(b) The number of units of each beverage container type that each member distributes or sells in the state.

IV. The organization shall provide to members against the fees charged under this chapter a credit from revenue generated from the sale of each beverage container type’s scrap in an amount based on the percentage of each beverage container type that each member distributes or sells in the state.

V. The organization shall publish publicly on its website:

(a) Within 18 months after the effective date of this chapter, an initial plan for how the organization will meet its requirements under this chapter over the next 5 years, including the performance targets specified in RSA 149-S:11; and

(b) No later than every 5 years after publication of the initial plan under subparagraph (a), an updated plan on how the organization will continue to meet its requirements under this chapter, including the performance targets specified in RSA 149-S:11.

VI. The organization shall pay:

(a) For any beverage container processing mechanism or self-service kiosk that the organization chooses to install, maintain, and operate:

(1) With retailer permission granted pursuant to RSA 149-S:4; or

(2) At any location to meet or exceed:

(A) the performance targets under RSA 149-S:11; or

(B) The beverage container processing mechanism requirement under RSA 149-S:4, VI; and

(b) For any facilities in the state necessary to efficiently aggregate, sort, and process the beverage containers collected at redemption locations under this chapter;

(c) To upkeep a list and map on its website of all redemption locations and the redemption options available at each redemption location;

(d) By December 31 of each year, an annual installment to the department according to the formula under RSA 149-S:8, but not to exceed $500,000 per year; the installment shall fund the department's anticipated costs in the following year to implement, administer, and enforce this chapter, including adopting rules under this chapter;

(e) By December 31 of each year, reimbursement for enforcement costs that may result in a total reimbursement by the organization to the department more than $500,000 per year as long as the funded enforcement activities identified violations of this chapter and resulted in penalties under this chapter.

(f) A credit to consumers for the cost of the standard bags described under RSA 149-S:2, VI; and

(g) Beginning during the first full year and ending the fifth full year after one or more beverage container types is sold with a redemption refund value under this Act, direct annual payments by July 1 of each calendar year to drop-off facility operators and material recovery facility operators who choose to submit information under RSA 149-S:9; each payment shall:

(1) Equal 5 percent of the scrap value from the beverage container material the organization sold in the preceding calendar year; and

(2) Be based on the data submitted by drop-off facility operators or material recovery facility operators under RSA 149-S:9.

VII. If the standard bag the organization sells to consumers under RSA 149-S:2, VI is made of plastic film, the organization shall:

(a) Ensure that the standard bag sold is comprised of a minimum of 50 percent recycled content; and

(b) Demonstrate to the department that the plastic film waste from the standard bags will be recycled in the best commercially available manner.

VIII. The organization is not required to pay a redemption refund under this chapter for:

(a) Any beverage container that visibly contains or is visibly contaminated by a substance other than water, residue of the beverage contained within the beverage

container as sold by a retailer to a consumer, or dust;

(b) Any beverage container that is crushed, broken, or damaged to the extent that the brand appearing on the beverage container cannot be identified;

(d) Any beverage container for which the organization has reasonable grounds to believe a redemption refund has already been issued under this chapter or under any other state's law, rule, or regulation.

IX. The organization may:

(a) Use, or award grants using, moneys received or generated under this chapter for:

(1) Litter clean-up; and

(2) Education and outreach on recycling beverage containers; and

(b) Use moneys received or generated under this Act to directly, or in partnership with a nongovernmental organization, provide services to or enhance the redemption experience of minority or low-income consumers who redeem a beverage container;

(c) To the extent allowed by law, distribute to its members moneys received or generated under this chapter during a fiscal year if:

(1) The organization's revenues under this chapter exceeded the costs of carrying out the organization's requirements under this chapter by more than 10 percent; and

(2) After distributing the moneys to members, the organization's nondistributed revenues comprise at least 110 percent of the costs of carrying out the organization's requirements under this chapter; and

(d) Use moneys generated under this chapter to pay members or support the management and activities of an advisory committee established under RSA 149-S:13.

149-S:11 Performance Targets.

I. The organization shall meet the following performance targets:

(a) Beginning during the second full calendar year after all beverage containers are sold in the state with the applicable redemption refund value under RSA 149-S:2, and each year thereafter, at least a 70 percent annual redemption rate for all redeemable beverage containers.

(b) Beginning with the fourth full calendar year after all beverage containers are sold in the state with the applicable redemption refund value under RSA 149-S:2, and each year thereafter, at least a 80 percent annual redemption rate for all redeemable beverage containers.

(c) Beginning during the sixth full calendar year after all beverage containers are sold in the state with the applicable redemption refund value under RSA 149-S:2, and each year thereafter, at least an 85 percent annual redemption rate for all redeemable beverage containers.

(d) Beginning during the eighth full calendar year after all beverage containers are sold in the state with the applicable redemption refund value under RSA 149-S:2, and each year thereafter, the organization shall achieve:

(1) At least a 90 percent annual redemption rate for all redeemable beverage containers; or

(2) At least 90 percent of redeemable beverage containers collectively:

(A) Redeemed via the redemption system implemented under this chapter at an 85 percent redemption rate or higher, as required under subparagraph (c); and

(B) Collected under a curbside recycling program in the state and meet or exceed the quality standards described in RSA 149-S:14 when sold by the material recovery facility; and

(C) Collected at a drop-off facility and then sold by the drop-off facility with quality standards that meet or exceed those described in RSA 149-S:14.

II. The organization shall meet the following recycling rate targets, in accordance with the definition of “recycle” in this chapter, among the beverage containers redeemed through the system it operates:

(a) For beverage containers that are made of at least 90 percent aluminum, glass, high density polyethylene plastic, or polyethylene terephthalate:

(1) a 70 percent recycling rate for these beverage containers two years after these beverage containers are sold in the state with the applicable refund value under RSA 149-S:2; and

(2) a 90 percent recycling rate for these beverage containers five years after these beverage containers are sold in the state with the applicable refund value under RSA 149-S:2.

(b) For beverage containers not specified in subparagraph (a):

(1) a 50 percent recycling rate for these beverage containers four years after these beverage containers are sold in the state with the applicable refund value under RSA 149-S:2; and

(2) a 70 percent recycling rate for these beverage containers seven years after these beverage containers are sold in the state with the applicable refund value under RSA 149-S:2.

III. If the organization does not meet a redemption rate target required under paragraph I or a recycling rate target required under paragraph II, it shall submit to the department a product stewardship plan no more than 365 days after the data required under RSA 149-S:12 has most recently been published. The product stewardship plan shall detail the reason that the performance target was not met and any action the organization will take to meet the performance target.

IV. If the organization does not meet a redemption rate target under paragraph I or a recycling rate target under paragraph II in any calendar year, the department shall assess a penalty for each such violation against the organization:

(a) If a redemption rate target was not met, equal to 1 cent for each beverage container comprising the difference between the number of beverage containers that were redeemed and the total number of beverage containers that, if redeemed, would have met the redemption rate target; or

(b) If a recycling rate target was not met, equal to 1 cent for each beverage container comprising the difference between the number of beverage containers that were recycled and the total number of beverage containers that, if recycled, would have met the recycling rate target.

V. If the organization does not meet all redemption rate targets under paragraph I and recycling rate targets under paragraph II within 3 years after a product stewardship plan was submitted to the department under paragraph III, the department shall:

(a) Assess a penalty once per calendar year against the organization:

(1) If redemption rate targets were not met, of up to 10 cents for each beverage container comprising the difference between the number of beverage containers that were redeemed and the total number of beverage containers that, if redeemed, would have met the performance targets; or

(2) If recycling rate targets were not met, of up to 10 cents for each beverage container comprising the difference between the number of beverage containers that were recycled and the total number of beverage containers that, if recycled, would have met the performance targets.

(b) Require the organization to submit a revised product stewardship plan within 365 days.

VI. If the organization does not meet all redemption rate targets required under paragraph I and recycling rate targets required under paragraph II within 5 years after a product stewardship plan was submitted to the department under paragraph III, then:

(a) The organization shall detail on the organization's website why a new executive director of the organization is not necessary if, at the end of the 5-year

period, the same person has acted as executive director of the organization for more than 365 days prior to the end of the 5-year period;

(b) The department may require the organization to remove an executive director of the organization that has served in that position for more than 365 prior the end of the 5-year period; and

(1) If redemption rate targets were not met in the previous calendar year, of up to 15 cents for each beverage container comprising the difference between the number of beverage containers that were redeemed and the total number of beverage containers that, if redeemed, would have met the performance targets; or

(2) If recycling rate targets were not met in the previous calendar year, of up to 15 cents for each beverage container comprising the difference between the number of beverage containers that were recycled and the total number of beverage containers that, if recycled, would have met the performance targets.

VII. Notwithstanding paragraphs IV through VI, the penalty for each performance target required in paragraph IV is not in addition to the penalties authorized in paragraphs V through VI as long as the penalty assessed against the organization in paragraphs V through VI is greater than that required in paragraph IV.

VIII. If the organization does not meet all the redemption rate targets required under paragraph I and the recycling rate targets under paragraph II within 7 years after a product stewardship plan was submitted to the department under paragraph III, then the department may take over management of the organization from the executive director of the organization and charge the organization members in accordance with RSA 149-S:10 until:

(a) All performance targets are met, after which the members of the organization shall take over management of the organization again and choose a new executive director within 365 days after all performance targets are met; or

(b) Five years after the department has taken over, after which, if all performance targets are not met in any 2 consecutive years, the members of the organization shall take over management of the organization again and choose a new executive director within 365 days.

IX. If the department utilizes paragraph VIII, then the requirements of paragraphs III, V, and VI shall not apply to the organization until 3 years after the new executive director is chosen.

149-S:12 Reporting.

I. On or before July 1 of each calendar year, beginning July 1 of the first full calendar year after a beverage container has a redemption refund value under this chapter, the organization shall make publicly available on its website:

(a) The number of beverage containers sold in the state by material type, as well as, for each quarter of the year covered by the report and the quarters of each prior year for at least the preceding 5 years, to the extent the data is available under this chapter, the proportion of beverage containers sold in the state that are capable of being recycled, refilled, or reused;

(b) For each quarter of the year covered by the report and the quarters of each prior year for at least the preceding 5 years, and to the extent data is available under this chapter, the percentage of the total amount of beverage containers sold in the state that each beverage container material type represents;

(c) The percentage of the total amount of fees charged to members that each beverage container material type represents for each quarter of the year covered by the report and the quarters of each prior year for at least the preceding 5 years, to the extent data is available;

(d) The number of beverage containers, by material type, redeemed for each quarter of the year covered by the report and the quarter of each prior year for at least the preceding 5 years, to the extent data is available;

(e) The percent of beverage containers redeemed that were recycled, by material type;

(f) The number of beverage containers redeemed at each beverage container processing mechanism provided by the organization under this chapter;

(g) The buyers by material type to whom the organization sold beverage container materials;

(h) What end-product each beverage container type did become or likely became;

(i) The percentage of the total amount of moneys redeemed for each beverage container material type;

(j) Each redemption location in the state;

(k) The means of redemption at each redemption location in the state;

(l) The total expenses of the organization;

(m) The total revenues of the organization;

(n) The total reserves of the organization;

(o) The cost to the organization per beverage container redeemed;

(p) The number of redemption locations that provide services or an enhanced redemption experience for minority or low-income consumers;

(q) Aggregated demographic information, including, at a minimum, the race, ethnicity, and gender identity of:

(1) Employees working on-site at redemption locations or at facilities the organization establishes to aggregate, sort, and process the beverage containers collected at redemption locations; and

(2) Any organization employees not described in subparagraph (1).

(r) The number of consumer complaints per month, by redemption location, during the previous calendar year and each prior year for at least the preceding 5 years, to the extent data is available;

(s) The total number of individual consumers per month who filed complaints, by redemption location, during the previous calendar year and each prior year for at least the preceding 5 years, to the extent data is available;

(t) A list of all members, their brands of beverage containers, and a breakdown of each member's beverage container packaging mix by beverage container type during the previous calendar year and each prior year for at least the preceding 5 years, to the extent data is available;

(u) The buyers of the plastic film waste, if any, generated from the standard bag sold by the organization to consumers for redemption and how buyers may recycle the plastic film waste;

(v) The number of individuals and entities registered to receive electronic deposits of redemption refunds under this chapter; and

(w) The name of each member of the organization's board of directors.

II. The organization may rely on reporting by members for information used to comply with the reporting requirements of this chapter, but shall note in its annual report which of the metrics described in paragraph I are based on member reporting.

III. Once per calendar year, the department may require verification of information disclosed during that calendar year by the organization under this chapter. The verification shall:

(a) Only occur after being notified by the organization on or before August 1 of that calendar year that the department is requiring independent third-party verification;

(b) Be performed by an independent third party;

(1) The organization is required to report under this chapter;

(2) The department specifies for third-party verification under this paragraph; and

(3) Appeared, or should have appeared, in the organization's annual report for that calendar year.

(d) Be conducted on or before December 31 of the calendar year in which it is required by the department. The organization shall pay the full cost of the third-party verification.

IV. The organization shall establish safeguards to ensure members do not have access to information regarding:

(a) The price paid by any individual buyer for beverage container material sold by the organization under this act; and

(b) The amount of each beverage container material sold by the organization to each individual buyer.

V. On or before the last day of February of each calendar year, each member of the organization shall report to the organization all data necessary to satisfy the disclosure requirements of this section. The organization shall ensure that data provided by members under this section is confidential.

149-S:13 Operations Advisory Committee; Equity and Access Advisory Committee.

I. The organization shall establish an operations advisory committee that represents a range of interested and engaged persons and entities, including, at a minimum, one of each of the following:

(a) A beverage container manufacturer or a beverage container manufacturer's trade association that rotates between the leading beverage container types;

(b) A beverage producer or a beverage producer's trade association;

(d) The state;

(e) An environmental nonprofit organization;

(f) An entity that buys beverage containers from, or recycles them for, the organization; and

(g) A retailer or a retailer's trade association.

II. The operations advisory committee may:

(a) Provide written or oral comments directly to the board of directors and the executive director no more than 4 times a year; and

(b) Every even-numbered calendar year, submit to the organization a written report that the organization shall publish on its website upon request by the operations advisory committee and containing:

(1) The operations advisory committee's feedback on the operation of the organization; and

(2) The operations advisory committee's feedback on the redemption refund system established under this chapter.

III. The organization shall establish an equity and access advisory committee that represents persons who can help ensure the organization's operations appropriately consider the diverse needs and cultures of people who redeem beverage containers, including, at a minimum, one of each of the following:

(a) An advocate for homeless persons;

(b) A governmental social services office;

(d) A nongovernmental organization with a focus on environmental justice; and

(e) A specialist in diversity and inclusion.

IV. The equity and access advisory committee may:

(a) Provide written or oral comments directly to the board of directors and the executive director no more than 4 times a year; and

(b) Every even-numbered calendar year, submit to the organization a written report that the organization shall publish on its website upon request by the equity and access advisory committee and containing:

(1) The equity and access advisory committee's feedback on whether the organization is appropriately considering the diverse needs and cultures of people who redeem beverage containers under this chapter; and

(2) The equity and access advisory committee's suggestions on how the organization can improve in terms of equity and access.

149-S:14 Drop-Off Facility and Material Recovery Facility Duties.

I. Operators of material recovery facilities and drop-off facilities shall use an industry-standard scale to measure the weight of all beverage containers that enter their facilities.

II. Operators of material recovery facilities and drop-off facilities shall track the weight by U.S. ton of each beverage container type redeemable under this chapter that enters their facilities and the quality of each bale or ton of redeemable material.

III. The organization shall buy bales of beverage containers redeemable under this chapter from operators of material recovery facilities and drop-off facilities for beverage containers that were made with individual containers received from household collection of recyclables and meet the quality threshold in paragraph IV.

IV. The organization shall pay the operators of material recovery facilities and drop-off facilities half of the redemption value under this chapter for each beverage container if:

(a) The plastic PET bottle bale produced meets the Association of Plastic Recyclers Grade A model specification for plastic PET bottles;

(b) The aluminum beverage can bale produced meets one of the used beverage can (UBC) scrap specifications in the latest scrap specifications from the Institute of Scrap Recycling Industries, as well as has no more than 4 percent moisture and has no more than 8 percent non-used beverage can material after the moisture is deducted;

(c) The glass bottle material produced has a glass purity of at least 95 percent per the glass purity measurement instructions from the Glass Recycling Coalition;

(d) The plastic high density polyethylene (HDPE) natural bottle bale produced meets the HDPE natural bottle model bale specification from the Association of Plastic Recyclers;

(e) The plastic HDPE colored bottle bale produced meets the HDPE colored bottle model bale specification from the Association of Plastic Recyclers;

(f) The aseptic packaging and gable-top carton bale meets the latest aseptic packaging and gable-top carton specification from the Institute of Scrap Recycling Industries; or

(g) The quality of the other redeemable beverage container types not specified in this paragraph meets thresholds set by the department, in consultation with the organization and operators of material recovery facilities and drop-off facilities.

V. All thresholds in this section tied to externally referenced documents such as the model bale specifications from the Association of Plastic Recyclers and the Institute of Scrap Recycling Industries shall reflect the most current version of the externally referenced documents including any updates made after enactment of this chapter.

VI. The department, in consultation with the organization and operators of material recovery facilities and drop-off facilities, may set thresholds for material quality that require the organization to pay some amount other than 50 percent of the redemption amount under this chapter.

VII. The organization shall buy bales of beverage containers redeemable under this chapter from operators of material recovery facilities and drop-off facilities for beverage containers that were made with individual beverage containers received from household collection of recyclables and meet quality requirements established pursuant to paragraph VI.

VIII. The organization may buy bales of beverage containers redeemable under this chapter from operators of material recovery facilities and drop-off facilities for beverage containers that were made with individual beverage containers received from household collection of recyclables and do not meet quality requirements established pursuant to paragraphs IV or VI.

IX. The organization becomes the owner of the beverage containers once the appropriate portion of the redemption value per beverage container is paid to the operator of the material recovery facility or drop-off facility and as such, is free to sell the material to the buyer of its choosing for revenue after first allowing beverage producers or a company in their beverage container supply chain to purchase the material at a fair market rate.

X. When the organization pays the operators of the material recovery facilities and drop-off facilities the appropriate portion of the redemption value per beverage container, it may do so with an assumption that the beverage containers sold to it have a breakdown of containers that are 24 ounces or less and more than 24 ounces equivalent to what percent of that container type that consumers redeemed in the last calendar year were 24 ounces or less and more than 24 ounces.

XI. Operators of material recovery facilities and drop-off facilities shall permit the organization to tour its facility without notice up to 4 times each calendar year.

XII. Operators of material recovery facilities and drop-off facilities shall pay for up to one independent audit per calendar year on the quality of its material upon request by the organization and shall allow the organization to conduct 2 additional audits per calendar year on the quality of its material upon request by the organization and at the organization’s expense.

149-S:15 Reuse Study. The department shall conduct a study on the infrastructure that is needed in the state to support a robust system for reusable beverage containers. The study required in this section shall be published on the department’s website no later than 2 years after the effective date of this chapter. The cost of the study shall be included in a reimbursement request to the organization under RSA 149-S:17.

149-S:16 Beverage Container Grant Program.

I. The organization shall transfer 5 percent of the revenue from unclaimed redemption refunds in the previous calendar year to the department by July 1 of each calendar year starting the first full calendar year after one or more beverage container types is sold with a redemption refund value under this chapter to fund a beverage container grant program.

II. The department with the money available in the beverage container grant program shall annually fund with a competitive grant process education, infrastructure, or litter clean-up activities that increase the reuse or recycling of beverage containers or reduce the litter from beverage containers in the state.

III. The department shall not give grants such that any one beverage container type receives more than 25 percent of the benefits from the activities funded.

IV. The following entities are eligible for a grant under the grant program:

(a) A school or an institution of higher education;

(b) A non-profit organization;

(d) Federally recognized tribes;

(e) A for-profit organization; and

(f) A public-private partnership.

V. The cost to administer the grant program shall be included in a reimbursement request to the organization under RSA 149-S:17.

149-S:17 Reimbursement to the Department.

I. The organization shall reimburse the department for costs incurred by the department

under this chapter, not to exceed $500,000 per year, in accordance with RSA 149-S:10, VI(d).

II. The organization shall reimburse the department for enforcement costs incurred by the department under this chapter, in accordance with RSA 149-S:10, VI(e), that may take the total amount reimbursed by the organization to the department beyond $500,000 per year as long as the funded enforcement activities identified violations of this chapter and resulted in penalties under this chapter.

149-S:18 Enforcement.

I. In addition to any other applicable civil penalties or criminal fines, the department may impose a civil penalty for each day that a violation of this chapter, as may be defined by a subsequent rulemaking, occurs that is:

(a) $100 for the first violation of any requirement under this chapter; and

(b) not more than $1,000 for each subsequent violation of that requirement.

II. A person who takes any of the following actions with the intent to knowingly defraud is subject to paragraph III, along with any other federal, state, or local enforcement action arising from the action:

(a) Redeeming out-of-state beverage containers, rejected beverage containers, line defects, or beverage containers that have already been redeemed;

(b) Seeking a redemption refund under this chapter by returning an already-redeemed beverage container at a redemption location;

(c) Bringing out-of-state beverage containers, rejected beverage containers, or line defects to the state marketplace for redemption; or

(d) Selling beverage containers not distributed or imported into the state by a member of the organization.

III. A violation of paragraph II resulting in financial gain by the violator shall subject the violator to the following:

(a) If the amount of moneys gained is equal to or less than $950, the violator is subject to:

(1) Imprisonment in a county jail for not more than 6 months;

(2) A criminal fine not exceeding $1,000; or

(3) Both the fine and imprisonment described in subparagraphs (1) and (2).

(b) If the amount of moneys gained is more than $950, the violator is subject to:

(1) Imprisonment in a county jail for not more than one year;

(2) A criminal fine not exceeding $10,000; or

(3) Both the fine and imprisonment described in subparagraphs (1) and (2).

IV. The department may bring a civil action to enjoin the distribution, importation, or sale in the state of a beverage container in violation of this chapter.

V. The department may assess a penalty of up to $30,000 in a calendar year against the organization for each redemption location at which the organization receives more than an average of 100 individuals' complaints per month, according to the public reporting required under RSA 149-S:12.

VI. After notification from the department of noncompliance with this chapter and a 60-day cure period, the department may administratively impose a civil penalty once per year to any distributor or importer who fails to participate as an organization member as required under RSA 149-S:2. The civil penalty shall be the greater of $10,000 or 10 cents per beverage container sold by the distributor or importer in the state while not a member. Any distributor or importer who incurs a penalty under this section may appeal the penalty to the department.

VII. All penalties the state recovers under this chapter:

(a) Up to the first $5,000,000 per calendar year shall only be used to administer this chapter;

(b) Beyond the first $5,000,000 per calendar year shall only be put toward the beverage container grant program created in RSA 149-S:16.

149-S:19 Administration. The department shall administer and enforce the provisions of this chapter not otherwise allocated to another person or entity under this chapter.

2 Effective Date. This act shall take effect January 1, 2025.

LBA

24-2793

Revised 12/29/23

HB 1636-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to creating the New Hampshire container deposit, refund, recycle, and reuse system.

FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None


Estimated State Impact - Increase / (Decrease)
	FY 2024	FY 2025	FY 2026	FY 2027
Revenue	$0	Indeterminable	Indeterminable	Indeterminable
Revenue Fund(s)	Beverage Container Recycling Redemption Refund Program Liquor Fund
Expenditures	$0	In Excess of $140,000	In Excess of $246,000	In Excess of $556,000 to $756,000
Funding Source(s)	Beverage Container Recycling Redemption Refund Program General Fund and Liquor Fund
Appropriations	$0	$0	$0	$0
Funding Source(s)	None
• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] No

Estimated Political Subdivision Impact - Increase / (Decrease)
	FY 2024	FY 2025	FY 2026	FY 2027
County Revenue	$0	$0	$0	Indeterminable
County Expenditures	$0	$0	$0	Indeterminable
Local Revenue	$0	$0	$0	Indeterminable
Local Expenditures	$0	$0	$0	Indeterminable

METHODOLOGY:

This bill Department of Environmental Services indicates this bill would establish a statewide beverage container redemption program for collection and recycling of used beverage containers. The program would be implemented by a nonprofit “Distributor and Importer Responsibility Organization" (Organization) with regulatory and enforcement oversight provided by the Department. Beverage distributors and importers operating in the State would join this Organization as members and pay fees to the Organization to fund the redemption program. Unlike traditional “bottle bills” this bill would not require consumers to pay a deposit at time of purchase that would be refunded at time of redemption. Instead, the Organization would directly fund redemption payments to consumers from fees paid by member distributors or importers. Retail stores of a certain square footage would be required to provide space for redemption centers which would be operated and maintained at the Organization’s expense including compensation to the stores for use of such space. The Department assumes that some or all of the State Liquor Outlets may be required to host redemption centers. The Department provided the following information and assumptions:

The Organization would assume most of the day-to-day operational and financial responsibilities, including collecting and managing beverage containers via redemption networks, paying consumers for redemptions, calculating redemption rates and determining and collecting membership fees.

The Department would be responsible for rulemaking and the following:
- Adjusting the redemption values when deemed necessary,
- Establishing a formula for the Organization to compensate retail stores for providing redemption space,
- Establishing convenience standards to ensure a sufficient quantity and distribution of redemption centers are established by the Organization,
- Enforcing the provisions of the bill including required redemption rates, recycling rates and performance targets,
- Conducting a “Reuse Study” due January 1, 2027,
- Administering a grant program funded by a portion of unclaimed redemption monies to facilitate projects that promote reuse, recycling or litter clean-ups of beverage containers.

The Organization would compensate the Department for administrative costs by issuing annual payments by December 31 for the estimated administrative costs for the upcoming year (up to a maximum of $500,000).

The Department assumes the first such payment would be December 31, 2025 (FY 2026) for costs anticipated in FY 2027.

The Department assumes the requirements of the bill would necessitate the creation of two new full time Environmentalist IV positions (LG 27). These positions would be needed in FY 2025 in order to allow time for preliminary rule adoption. Because work must be completed before the Organization issues payments, the Department assumes initial funding for the positions would be general funds. The estimated cost for these positions, including salary, benefits, office space, furnishings, equipment and operating costs is $140,000 in FY 2025, $246,000 in FY 2026 and $256,000 in FY 2027. In addition the Department assumes a qualified contractor would conduct the Reuse Study and would be selected to conduct the study during FY 2027. The cost of this contract would be between $300,000 to $500,000.

The Department of Environmental Services would receive annual payments from the Organization for anticipated administration costs in the following year. Revenues received in FY 2026 would fund expenditures in FY 2027. The Department provided the following revenue and expenditure estimates:

	FY 2025	FY 2026	FY 2027
Revenue from the Organization	$0	$500,000	In Excess of $256,000
Department Expenditures
Cost of 2 Environmentalist IV positions	$140,000	$246,000	$256,000
Reuse Study	$0	$0	$300,000 to $500,000
The effective date of the bill is January 1, 2025. FY 2025 costs are for one-half of the fiscal year. Revenue in FY 2027 would cover the anticipated costs for FY 2028 which are not known, but at least the costs associated with the 2 Environmentalist IV positions.

The amount the Organization may pay the Department would be capped at $500,000 per year. In FY 2026 the Department would receive the maximum of $500,000 to cover the FY 2027 personnel costs and a portion of the Reuse Study costs. Costs in excess of the revenue received would be a cost to the general fund. Revenue received in FY 2027 would be for personnel costs in FY 2028. It is possible the Department would collect revenues from enforcement penalties. However, such revenues would be contingent on circumstances requiring enforcement, which are impossible to predict.

The bill provides that municipal and private drop-off recycling facilities including transfer stations and larger-scale material recovery facilities would receive two types of payments from the Organization. The first would be payments based on revenue from the sale of used beverage containers to the recycling markets. In addition the facilities would receive payments for sorted and bailed beverage containers based on a percentage of the redemption value. Many municipalities and some counties operate drop-off transfer stations that sort and bale beverage containers, and these would be eligible to receive such revenue. These facilities would be eligible to receive payments one year after redemption values take effect on July 1, 2026. As such, these revenues would not be realized by local governments until July 1, 2027 (FY 2028). Such revenues would vary by municipality. The Department does not expect the bill would have an impact on local or county expenditures.

The Liquor Commission indicates it would need to assess, what if any, products may need to be removed to make room available for recycling equipment. A reduction in the space available for saleable products may have a detrimental impact on liquor revenue. In addition, it is unclear if the bill would place additional demands on store employees. The Commission notes it currently does not have enough employees to the staff liquor outlets and the bill may impact the ability for store staff to sell alcoholic beverages. The Commission assumes, if this bill is considered “beverage container mandatory deposit legislation”, there could be a reduction in beer tax revenue. RSA 178:26 provides if beverage container mandatory deposit legislation is enacted, the $0.30/ gallon beer tax shall be reduced to $0.18/ gallon. Based on a volume of 43.7 million gallons, the difference in revenue would be approximately $5.2 million.

AGENCIES CONTACTED:

Department of Environmental Services and Liquor Commission