Relating to the development, promotion, and funding of certain recycling projects.

89(R) HB 4839 - House Committee Report version - Bill Text

By: Walle

H.B. No. 4839

Substitute the following for H.B. No. 4839:

By: Landgraf

C.S.H.B. No. 4839

A BILL TO BE ENTITLED

AN ACT

relating to the development, promotion, and funding of certain

recycling projects.

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

SECTION 1. Section 361.0152(a), Health and Safety Code, is

amended by adding Subdivision (2-a) to read as follows:

(2-a)

"Program" means the recycling market

development program established by Section 361.442.

SECTION 2. Sections 361.0152(c), (d), (f), (g), and (h),

Health and Safety Code, are amended to read as follows:

(c) In cooperation with the Texas Economic Development and

Tourism Office
and in consultation with the recycling market

advisory council established under Section 361.443
, the
program

administrator
[
commission
] shall produce
for the commission
a plan

with recommendations
to stimulate the use of recyclable materials

as feedstock in processing and manufacturing.

(d) The plan must:

(1) identify the quantity and type of recyclable

materials that are being recycled from municipal and industrial

sources;

(2) identify and estimate the quantity and type of

recyclable materials that are generated but not being recycled;

(3) identify and estimate the current economic

benefits of recycling materials and the potential economic benefits

to be gained by recycling materials identified under Subdivision

(2);

(4) identify the location, processing capacity, and

consumption capacity of existing principal processors and

manufacturers;

(5) identify the barriers to increasing the use of

recyclable materials as feedstock for principal processors and

manufacturers and means to eliminate those barriers;

(6) identify and estimate the need and type of

principal processing and manufacturing facilities necessary to

consume the existing and potential volumes of recyclable materials;

[
and
]

(7) consider health effects related to recycled

materials and recycling technologies;

[
(7)
] (8) recommend institutional, financial,

administrative, and physical methods, means, and processes that

could be applied by this state and by local governments to:

(A) increase the use of recyclable materials;

(B) stimulate the use of recyclable materials by

principal processors and manufacturers; and

(C) encourage the expansion of existing

principal processors and manufacturers and the development of new

principal processors and manufacturers that use recyclable

materials
;

(8)

include a report on the progress and results of

research conducted by the program under Section 361.442(b);

(9)

include a report on the status of grants and loans

provided through the program; and

(10)

provide legislative and policy recommendations

to the commission regarding the purposes of the program
.

(f) To the extent practicable in preparing the plan, the

program administrator
[
commission
] shall use methodologies and

information derived from other recycling economic studies already

performed.

(g) The
program administrator
[
commission
] shall update the

plan
not later than December 1 of each even-numbered year
[
every

four years
], and in a year in which the plan is updated, the plan

shall be included in the annual summary of municipal solid waste

management produced by the municipal solid waste permits section of

the commission and delivered to the governor and legislature.

(h) In cooperation with other state agencies, including the

governor's office, the commission shall develop an education

program intended for the public that must include:

(1) the economic benefits of recycling, including job

creation, economic impact, percent of total municipal and

industrial solid waste recycled, weight and volume of municipal and

industrial solid waste recycled, and taxes and fees paid by the

recycling industry;

(2) a spotlight of collectors and processors of

recyclable materials and manufacturers based in this state that are

using recyclable materials as feedstock; [
and
]

(3) the detrimental effects of contamination in the

recyclable materials stream and the need to reduce those effects
;

and

(4)

educational materials developed under Section

361.0202, as appropriate
.

SECTION 3. Chapter 361, Health and Safety Code, is amended

by adding Subchapter N-1 to read as follows:

SUBCHAPTER N-1. RECYCLING INNOVATION AND MARKET DEVELOPMENT

Sec. 361.441. DEFINITIONS. In this subchapter:

(1)

"Fund" means the Texas Recycling Fund established

by Section 361.444.

(2)

"Program" means the recycling market development

program established by Section 361.442.

Sec.

361.442.

RECYCLING MARKET DEVELOPMENT PROGRAM.

(a)

The commission shall establish a recycling market development

program to:

(1)

facilitate the realization of economic benefits to

this state that may result from the expanded use of recycled

material as feedstock in manufacturing and processing;

(2)

promote the development of recycling

infrastructure and technology in this state; and

(3) make policy recommendations to the commission.

(b) The program administrator shall:

(1) conduct research on:

(A)

techniques to improve the recycling

collection process and increase recycling rates in this state;

(B)

processes to improve the access of

manufacturers in this state to collected recyclable materials;

(C)

the relationship between the supply of

recyclable material and the demand for recycled material feedstock

for manufacturing and end use; and

(D)

potential improvements to technology

currently used at recycling facilities in this state;

(2)

oversee and coordinate initiatives conducted by

the commission, the comptroller, and other state agencies under the

recycling market development implementation program established by

Section 361.423;

(3)

make recommendations to the commission on

potential financial incentives and policy changes to improve

recycling infrastructure in this state;

(4)

identify and apply for federal funding

opportunities related to recycling; and

(5)

implement and manage financial incentives for the

development of recycling infrastructure and technology in this

state, including by:

(A)

awarding grants or making loans under this

subchapter; or

(B)

facilitating the application by eligible

recipients for tax credits available under state or federal law.

Sec.

361.443.

RECYCLING MARKET ADVISORY COUNCIL.

(a)

The

commission shall appoint an advisory council to advise the program

administrator on the implementation of Section 361.0152 and this

subchapter.

(b)

The commission shall appoint a person to the advisory

council or fill a vacancy on the advisory council following review

and recommendation of an applicant by the executive director.

(c)

The advisory council is composed of the following 13

members:

(1)

one representative from a regional council of

governments;

(2)

one representative from the paper and pulp

industry in this state;

(3)

one representative from the organics recycling

industry in this state;

(4)

one representative from the plastic manufacturing

industry in this state;

(5)

one representative from the advanced recycling

industry in this state;

(6)

one representative from the mechanical recycling

industry in this state;

(7)

one representative from the materials recovery and

sorting facilities industry in this state;

(8)

one representative from the aluminum industry in

this state;

(9)

one representative from the glass industry in this

state;

(10)

one representative from the alcoholic beverage or

soft drink industry in this state;

(11)

one representative from the packaging supply or

packaging conversion industry in this state;

(12)

one representative from the packaged retail goods

industry in this state; and

(13)

one representative from the State of Texas

Alliance for Recycling;

(13)

one representative from an environmental

education or advocacy organization working on recycling.

(d)

The executive director shall designate the presiding

officer of the advisory council.

(e)

A member of the advisory council serves a five-year

term.

(f)

The advisory council shall convene at the call of the

presiding officer at least twice a year.

(g)

Section 2110.008, Government Code, does not apply to the

council.

Sec.

361.444.

TEXAS RECYCLING FUND.

(a)

The Texas

Recycling Fund is established as a dedicated account in the general

revenue fund to be administered by the executive director.

(b) The fund consists of:

(1) money appropriated to the credit of the fund;

(2)

principal and interest payments on all loans from

the fund; and

(3) gifts, grants, or donations received for the fund.

(c)

Money in the fund may be used only as provided by this

subchapter.

(d) The commission may not:

(1)

adopt or impose a fee or penalty that is to be paid

by a private entity and deposited to the credit of the fund;

(2)

direct money collected by the commission from a

fee or penalty authorized by law or commission rule to be deposited

to the credit of the fund; or

(3)

authorize a private organization or entity to

impose a fee or penalty that is to be paid by a private entity and

deposited to the credit of the fund.

Sec.

361.445.

USE OF FUND.

The commission may use money in

the fund:

(1) for the administration of the program;

(2)

to award grants or provide loans to business

entities operating in this state that provide a public benefit to

this state by encouraging economic development related to recycling

projects, as provided by Sections 361.446 and 361.447;

(3)

to award grants to a public institution of higher

education in this state to conduct research that provides a public

benefit to this state by facilitating the development of recycling

technology and infrastructure in this state;

(4)

to conduct recycling research pilot projects,

including pilot projects conducted in partnership with other state

agencies or business entities; or

(5)

to support the implementation of the public

education program described by Section 361.0152(h).

Sec.

361.446.

RECYCLING INNOVATION GRANT PROGRAM. (a)

The

commission by rule shall establish a recycling innovation grant

program to allow the program administrator to use money from the

fund to make grants to entities that provide a public benefit to

this state by:

(1)

conducting research on or investing in new

recycling technologies and processes in this state;

(2)

enhancing the availability of recycled material

for use in manufacturing or packaging of products; or

(3)

investing in technology that reduces recycling

costs or increases recycling efficiency of recyclable material.

(b)

Projects that may be considered for a grant under this

section include:

(1)

expanding recycling and sorting infrastructure,

including pilot projects;

(2) expanding or upgrading recycling equipment;

(3)

promoting development and improving services in

rural communities in this state;

(4) addressing contamination of recyclable material;

(5)

investing in processes or technology that make

recycling more economically viable;

(6)

offsetting an entity's documented operating costs

for producing manufacturing feedstock from recycled material; or

(7) enhancing the marketability of recycled material.

(c)

The amount of a grant awarded under this section may not

exceed 50 percent of the amount of actual eligible costs incurred by

the grant recipient within a time period prescribed by the

commission.

(d)

In awarding a grant under this section, the program

administrator shall ensure that:

(1)

the grant provides a public benefit to this state

as described by Subsection (a);

(2)

the commission retains sufficient control over the

grant to ensure the state receives a public benefit; and

(3)

the grant complies with the eligibility

requirements under Section 361.448 and applicable rules.

Sec.

361.447.

RECYCLING LOAN PROGRAM.

(a)

The commission

by rule shall establish a loan program to allow the program

administrator to use money from the fund to provide financial

assistance to business entities for projects that provide a public

benefit to this state by improving recycling outcomes in this

state.

(b)

In making a loan under this section, the program

administrator shall ensure:

(1)

the loan provides a public benefit to this state by

encouraging the development of recycling technology and

infrastructure in this state;

(2)

the commission retains sufficient control over the

loan to ensure the state receives a public benefit; and

(3)

the loan complies with the eligibility

requirements under Section 361.448 and applicable rules.

Sec.

361.448.

ELIGIBILITY CRITERIA AND REQUIREMENTS FOR

RECYCLING GRANTS AND LOANS.

(a)

The commission by rule shall

establish eligibility criteria and requirements for a grant or loan

made under this subchapter.

(b)

Eligibility criteria established by the commission must

require an entity receiving a grant or loan to:

(1) be in good standing under the laws of this state;

(2)

not owe delinquent taxes to a taxing unit of this

state;

(3)

have fully repaid any previous loan made under

Section 361.447 that is past the loan's maturity date;

(4)

maintain sufficient financial assurance in

accordance with commission rules for a recycling facility;

(5)

agree that the recipient may not use funds from a

grant or loan made under this subchapter for financial assurance;

(6)

demonstrate that a facility at which grant or loan

funds may be used will comply with commission requirements for the

containment of odors or liquids; and

(7)

demonstrate that the recipient holds any necessary

facility permit or authorization under state or federal law by the

time a grant or loan is made.

(c)

Requirements adopted under this section must specify

time limits for the storage and processing of material by a facility

operated by an entity receiving a grant or loan.

(d)

A recipient may use a grant or loan made under this

subchapter only for a recycling purpose approved under this

subchapter or commission rule.

Sec.

361.449.

ADMINISTRATIVE SUPPORT. The commission shall

provide to the program administrative support, staff, and

facilities as necessary for the program to implement this

subchapter.

Sec.

361.450.

RULEMAKING. The commission shall adopt rules

as necessary to implement this subchapter.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.