RELATING TO WASTE MANAGEMENT.

HB1264

HOUSE OF REPRESENTATIVES

H.B. NO.

1264

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to waste management
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

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SECTION
1.
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The legislature finds that as the
State strives to fulfill its commitments to reduce waste and effectively
mitigate the impacts of climate change, extended producer responsibility
policies offer an opportunity to create mutually beneficial partnerships with
the businesses that produce packaging waste.

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Extended
producer responsibility policies are designed to transfer some portion of the
costs of managing the waste generated by the sale of consumer goods to the
entities that produce those goods.
�
These
policies stand in contrast to existing policies that place this responsibility
solely on taxpayers.
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The failure of
recycling programs and the multiple crises created by plastic pollution, which
fouls air, water, and biological systems worldwide, are the primary drivers
leading to the call for such innovative solutions.

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The
legislature further finds that Hawaii has a unique role to play in creating
extended producer responsibility solutions due to the State's relatively small
resident population, remote location bounded by the Pacific ocean, and global
image as a relatively pristine environment.
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The fact that the islands attract millions of visitors each year adds to
Hawaii's value as a proving ground for forward-thinking waste reduction
initiatives.

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The
legislature also finds that the corporations that produce the greatest volume
of consumer goods have a correspondingly unique role to play in solving the
problems caused by the proliferation of packaging waste.
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Among these corporations, sixteen of the top
twenty are signatories to the Global Commitment for a New Plastics Economy, an
initiative developed by the Ellen MacArthur Foundation and the United Nations
Environmental Programme as a primary means for implementing waste-related
sustainable development goals.
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These
existing commitments have signatories who are on track to reduce the volume of
plastic packaging waste that their business models generate and ensure that
whatever remains is either reusable, recyclable, or compostable.

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Finally,
the legislature finds that although reuse strategies offer far greater benefits
than recycling programs, these strategies have historically failed to gain the
resources needed to develop and ensure success.

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The
purpose of this Act is to establish an extended producer responsibility program
to engage producers to eliminate packaging waste in the State.

PART II

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SECTION
2.
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The Hawaii Revised Statutes is
amended by adding a new chapter to be appropriately designated and to read as
follows:

"
Chapter

Extended producer responsibility program

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� -1
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Definitions.
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As used in this chapter:

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"Baseline volume" means
the volume of packaging waste a county sends to a power plant that burns
municipal solid waste as a fuel, a landfill, or both, during the calendar year
beginning and ending on a date determined by rule.

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"Brand" means a symbol, word, or
mark that identifies a fast-moving consumer good.

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"Covered material or product"
means, regardless of recyclability:

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(1)
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Any
part of a package or container, including material that is used for the
containment, protection, handling, delivery, and presentation of a product that
is sold, offered for sale, imported, or distributed in the State; and

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(2)
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Primary,
secondary, and tertiary packaging intended for the consumer market; service
packaging designed and intended to be filled at the point of sale, including
carry-out bags and bulk goods bags; and beverage containers.

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"Covered producer" means a
producer that either:

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(1)
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Produces a packaging volume of more than ten
thousand metric tons internationally; or

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(2)
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Has international gross sales of fast-moving
consumer goods of more than $500,000,000.

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"Department" means the department
of health.

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"Fast-moving consumer good" means
a:

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(1)
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Non-durable consumer good that is packaged
using a covered material or product; or

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(2)
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Covered material or product if the covered
material or product is being sold as a product instead of being used as
packaging.

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"Packaging volume" means the
packaging volume that a producer places on the market.

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"Person" means any individual,
business, partnership, limited liability company, corporation, not-for-profit
organization, association, government entity, public benefit corporation, or
public authority.

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"Producer" means any person,
except for the State or any of its political subdivisions, that:

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(1)
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Manufactures a fast-moving consumer good under
the person's own name or brand; and

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(2)
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Either:

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(A)
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Sells, offers for sale, distributes, or
imports a fast-moving consumer good as owner or licensee of a trademark or
brand under which a fast-moving consumer good is sold or distributed in the
State; or

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(B)
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Sells, offers for sale, or distributes a fast‑moving
consumer good in the State.

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"Program year" means a full calendar year beginning
and ending on
a date determined by rule
; provided that the final program year shall be determined by
rule.

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"Reuse" means to extend the life
of a product, package, or resource, excluding materials used as a fuel
substitute or for energy production (i.e. incineration), by either using it more
than once with little to no processing (same or new function), repairing it so
it can be used longer, or sharing, renting, selling, or donating it to another
party.

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� -2
.
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Sales
prohibition.
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Beginning and ending
on
a date determined by rules adopted by the department
, no covered producer shall sell or offer for sale any
fast-moving consumer good for delivery in this State unless the covered
producer has registered pursuant to section -3 and complied
with any other applicable provisions of this chapter.

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� -3
.
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Fast-moving
consumer good; covered producer responsibility.
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(a)
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Beginning on July 1, 2027, each covered producer shall register with the
department and pay to the department a fee as provided in subsection (e).

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(b)
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Each covered producer who is registered shall
submit an annual renewal of its registration by January 1 of each
subsequent program year, with the payment of a fee as provided in subsection
(e).

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(c)
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The registration and each renewal shall
include a list of all of the covered producer's brands of fast-moving consumer
goods and shall be effective on the second day of the succeeding month after
receipt by the department of the registration or renewal.

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(d)
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The registration and each renewal shall
include the covered producer's sales volume for the preceding year and the estimated
packaging volume placed in the market in the State by the covered producer's
sales volume during that year.
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The
packaging volume generated in the State shall be used to calculate the fee in
subsection (e).

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(e)
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The fee to be paid at the time of registration or renewal shall be $100
for each metric ton of packaging placed in the market in the State by the
covered producer.

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� -4
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Extended producer responsibility special fund.
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(a)
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There is established in the
state treasury the extended producer responsibility special fund into which
shall be deposited:

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(1)
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All fees, payments, and penalties collected by
the department pursuant to chapter;

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(2)
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Any appropriation by the legislature into the
special fund;

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(3)
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Any grant or donation made to the special
fund; and

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(4)
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Any interest earned on the balance of the
special fund.

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(b)
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The extended producer responsibility special fund shall be administered
by the department.

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(c)
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Moneys in the special fund shall be expended as follows:

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(1)
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Beginning with a fiscal year determined by
rule, the department shall allocate moneys to each county for the costs of
creating the countywide needs assessment required pursuant to section -6;

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(2)
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Funds in excess of those required to cover the
costs of the countywide needs assessments shall be awarded by the department to
qualified applicants for projects and programs that eliminate packaging waste
through the development of reuse and refill systems within the State.
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The department shall have the authority to
subcontract the administration of a grant program to a qualified nonprofit that
will process applications and make awards; provided that no producer regulated
under the law is connected to the nonprofit in charge of managing the awards in
a way that could impact the award process;

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(3)
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No funds shall be distributed pursuant to this
subsection unless approved by the department.
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The department shall approve or deny a proposal for funding within
ninety days of receipt of a proposal.
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The
department may approve proposals for funding that meet at least the following
criteria:

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(A)
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Eliminate packaging waste;

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(B)
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Increase the transition of packaging from
non-reusable to reusable or refillable packaging;

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(C)
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Increase access to reuse and refill
infrastructure, programs, and projects in the State;

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(D)
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Increase the capacity of reuse and refill
infrastructure, programs, and projects and the State;

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(E)
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Provide reuse and refill instruction that are,
to the extent practicable, consistent statewide, easy to understand, translated
into various commonly-used languages, and easily accessible; and

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(F)
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Provide for outreach and education that are
coordinated across programs or regions to avoid confusion for residents, and
developed in consultation with local government and the public; and

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(4)
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The department may expend an amount not to
exceed $ in each
fiscal year to administer the extended producer responsibility program
established by this chapter.

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� -5
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Needs assessment.
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(a)
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Each county shall develop a countywide needs
assessment, which shall:

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(1)
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Detail the resources needed to reduce the
volume of packaging waste the county sends to landfills by fifty per cent from
the respective county's baseline volume by a date determined by rule; provided
that a county with a population greater than five hundred thousand shall:

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(A)
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Detail in its needs assessment the resources
needed to reduce by fifty per cent of its baseline volume the volume of
packaging waste the county sends to a landfill or to a power plant that burns
municipal solid waste as a fuel; and

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(B)
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Categorize its resource needs by method of
packaging waste disposal; and

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(2)
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Detail the resources needed to reduce the volume
of packaging waste the county sends to a landfill by eighty per cent from the
respective county's baseline volume by a date determined by rule; provided that
a county with a population greater than five hundred thousand shall:

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(A)
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Detail in its needs assessment the resources
needed to reduce by eighty per cent of its baseline volume the amount of
packaging waste the county sends to a landfill or to a power plant that burns
municipal solid waste as a fuel; and

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(B)
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Categorize its resource needs by method of
packaging waste disposal.

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(b)
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Each county shall
submit its countywide needs assessment to the department no later than
a
date determined by rule
.
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The department shall compile the assessments
and consolidate them along with any recommendations made by the counties and
shall work with the counties and registered covered producers to establish
guidelines on the use of moneys in the extended producer responsibility special
fund; provided that priority shall be given to packaging reuse programs.

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(c)
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The department shall
submit an annual report to the legislature no later than twenty days prior to
the convening of each regular session beginning after the establishment of the
extended producer responsibility program that contains a summary of:

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(1)
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County needs assessments;

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(2)
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Moneys deposited into the extended producer
responsibility special fund;

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(3)
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The use of any moneys from the extended
producer responsibility special fund; and

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(4)
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Any other findings and recommendations,
including any proposed legislation.

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� -6
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Financial
and proprietary information; report.
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Notwithstanding any law to the
contrary, financial or proprietary information, including trade secrets,
commercial information, and business plans, submitted to the department under
this chapter shall be confidential and exempt from public disclosure to the
extent permitted by chapter 92F.

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� -7
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Rules.
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No later than
July 1, 2027, the department shall adopt rules pursuant to chapter 91 necessary
to implement this chapter.

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� -8
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Enforcement.
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(a)
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The department may conduct or require audits
and conduct inspections to determine compliance under this chapter.
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Except as provided in subsection (c), the
department and the attorney general may enforce this chapter and take necessary
action against any covered producer for failure to comply with this chapter or
rules adopted pursuant to this chapter.

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(b)
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The attorney general may file suit in the name of the State to enjoin an
activity related to the sale of fast-moving consumer goods in violation of this
chapter.

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(c)
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The department shall issue a warning notice to a person for the person's
first violation of this chapter.
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The
person shall comply with this chapter within sixty days of the date the warning
notice was issued or be subject to the penalties provided by law or rule,
including but not limited to penalties set forth in subsections (d) and (e).

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(d)
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Any person who violates any requirement of this chapter may be assessed
a penalty of up to $1,000 for the first violation and up to $2,000 for the
second and each subsequent violation, in addition to any additional penalties
required or imposed pursuant to this chapter; provided that each day of
continued violation shall constitute a separate violation.

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(e)
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The department shall determine additional penalties based on adverse
impact to the environment, unfair competitive advantage, and other
considerations that the department deems appropriate.

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� ‑9
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Administrative
penalties; fees.
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In addition to any other
administrative or judicial remedy provided by this chapter or rules adopted
under this chapter for a violation thereof, the department may impose by order
administrative penalties;
set, charge,
and collect administrative fines; recover administrative fees and costs,
including attorney's fees and costs; and bring legal action to recover
administrative fines and fees and costs, including attorney's fees and costs.

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� -10
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Applicability.
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This chapter
shall not apply to any material that is used in the packaging of a product that
is regulated as a drug, medical device, or dietary supplement by the United
States Food and Drug Administration under the Federal Food, Drug, and Cosmetic
Act, 21 U.S.C. 321 et seq., sec. 3.2(e) of 21 United States Code of Federal
Regulations or the Dietary Supplement Health and Education Act."

PART III

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SECTION
3
.
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There
is appropriated out of the general fund revenues of the State of Hawaii the sum
of $ or so much
thereof as may be necessary for fiscal year 2025-2026 to be deposited into the
extended
producer responsibility special fund established by this Act
.

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SECTION 4.
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There is appropriated out of the extended
producer responsibility special fund the sum of
$ or so much
thereof as may be necessary for fiscal year 2026-2027 for the counties to
prepare countywide need assessments; provided that the moneys shall be
expended
as follows:

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County of
Hawaii
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$

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County of
Kauai
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$

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County of
Maui
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$

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City and
county of Honolulu
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$

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The sum appropriated
shall be
expended
by
the respective county for the purposes of this Act.

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The sum
appropriated shall constitute the State's share of the cost of the mandated
program under article VIII, section 5, of the state constitution.

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SECTION 5.
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There is appropriated out of the extended
producer responsibility special fund the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 for the administration of
the extended producer responsibility program.

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The sum
appropriated shall be
expended

by the department of health for the purposes of this Act.

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SECTION 6.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 for one full-time
equivalent (1.0 FTE) position for the extended producer responsibility program
to develop rules, oversee and manage goals and objectives related to waste management,
analyze and assess waste reduction targets, and develop reports.

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The sums

appropriated shall be expended by the
department of health for the purposes of this Act.

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SECTION 7.
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This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

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SECTION 8.
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This Act shall take effect on July 1, 2025, and
shall be repealed on July 1, 2032; provided that if there are moneys remaining
in the extended producer responsibility special fund when this Act is repealed,
the department of health and the counties may continue to
expend
the remaining moneys
in a manner consistent with this Act after July 1, 2032, until all moneys have
been
expended
.

INTRODUCED BY:

_____________________________

Report Title:

Department
of Health; Counties; Extended Producer Responsibility; Waste Reduction;
Packaging; Fast-moving Consumer Goods;
Extended Producer Responsibility
Special Fund; Appropriation

Description:

Establishes
an Extended Producer Responsibility Program.
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Requires certain producers of fast-moving consumer goods to register
with the Department of Health and pay an annual fee based on the amount of
packaging
volume the covered producer places on the market each calendar year.
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Provides for the deposit of fees into an
Extended Producer Responsibility Special Fund.
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Provides for the expenditure of moneys from the Extended Producer
Responsibility Special Fund for the creation of a countywide needs assessment of
resources needed to reduce the volume of packaging waste sent to landfills or
power plants that burn municipal solid waste as a fuel by fifty per cent and eighty
per cent by a date to be determined by rule.
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Appropriates funds.
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Sunsets 7/1/2032.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.