Recycling & waste reduction

AN ACT Relating to recycling and waste reduction; amending RCW 1
82.19.050; adding a new section to chapter 82.04 RCW; adding a new 2
chapter to Title 70A RCW; creating a new section; and prescribing 3
penalties. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. FINDINGS— INTENT. The legislature finds 6
that Washington's current recycling system does not collect and 7
recycle the majority of the 3.8 billion glass, plastic, and metal 8
beverage containers put onto the market each year to their highest 9
and best use in order to optimize the economic and environmental 10
benefits of recycling for Washington residents.11
The legislature recognizes improved recycling for beverage 12
containers will help the state to reduce greenhouse gas emissions, 13
reduce litter and specifically plastic pollution, expand 14
opportunities for reusable containers, and support state and regional 15
businesses to build a circular economy. Higher-quality materials 16
always hold greater economic value and offer more diverse end 17
markets. The recent struggles of regional end markets expose critical 18
weaknesses in Washington's fragmented recycling system and underscore 19
the urgent need for comprehensive reforms to divert recyclable 20
materials, like glass, from landfills and ensure they are transformed 21
H-0822.1
HOUSE BILL 1607
State of Washington 69th Legislature 2025 Regular Session
By Representatives Stonier, Waters, Fitzgibbon, Peterson, Ramel,
Parshley, Reed, Reeves, Kloba, Duerr, Zahn, and Fosse
Read first time 01/27/25. Referred to Committee on Environment &
Energy.
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into valuable new products. Recycling refund programs provide a 1
proven solution by delivering high quality, source separated glass, 2
plastic, and metal containers that will revitalize end markets and 3
support robust local recycling infrastructure. 4
The legislature finds that by enacting a recycling refund program 5
for glass, plastic, and metal beverage containers within an extended 6
producer responsibility framework has been shown to be the most 7
effective method for the recovery, reuse, and recycling of beverage 8
containers and all packaging waste. By increasing recovery rates for 9
beverage containers, these systems will help companies who 10
manufacture these products meet recycled content goals and reduce 11
their environmental footprint. 12
Recycling refund programs in other states have proven to drive up 13
recycling rates by providing a direct financial incentive for 14
residents to return used containers. In addition, these systems also 15
have proven to reduce litter. Packaging pollution remains a 16
significant issue in Washington, with over 11.6 million pounds of 17
litter entering public parks annually and more than 26,000,000 pounds 18
accumulating along roadsides. Despite spending $12,000,000 annually 19
on cleanup efforts, only a fraction of the problem is addressed. In 20
contrast, states with recycling refund programs have reported 21
reductions in beverage container litter by up to 84 percent, while 22
achieving recovery rates for plastic bottles that are 3.5 times 23
higher than states without such programs — an essential step in 24
preventing ocean plastics and other environmental harm.25
The legislature intends for recycling refunds to play a pivotal 26
role in contributing to cleaner communities, a healthier recycling 27
ecosystem, and stronger domestic manufacturing and circular economy.28
NEW SECTION. Sec. 2. The definitions in this section apply 29
throughout this chapter unless the context clearly requires 30
otherwise.31
(1) "Applicable refund value" means the value established under 32
section 9 of this act. 33
(2) "Beverage" means a drinkable liquid intended for human oral 34
consumption. "Beverage" does not include: (a) A drug regulated under 35
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 301 et seq.; 36
(b) 100 percent fluid milk infant formula; or (c) a meal replacement 37
liquid. 38
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(3) "Beverage container" means any prepackaged container for 1
beverages. 2
(4) "Brand" means a name, symbol, word, logo, or mark that 3
identifies an item and attributes the item and its components, 4
including packaging, to the brand owner of the item.5
(5) "Brand owner" means a person or entity that owns or licenses 6
a brand or that otherwise has rights to market a product under the 7
brand, whether or not the brand's trademark is registered.8
(6) "Centralized processing facilities" means a facility that 9
sorts, bales, and aggregates covered beverage containers and 10
associated materials for the purpose of recycling.11
(7) "Consumer" means an individual in this state who purchases a 12
beverage in a beverage container for consumption. 13
(8) "Contracted redemption pick-up operators" means affiliated or 14
unaffiliated companies or organizations that provide individualized 15
valet or pick-up services of aggregated covered beverage containers 16
for single-family or multifamily households. 17
(9) "Covered beverage container" means any beverage container 18
subject to a recycling refund. At a minimum, this includes glass, 19
plastic, and metal cans or bottles with a capacity of one gallon or 20
less. Recycling refund producer responsibility organizations must 21
submit a proposed list of covered beverage containers as part of 22
their program and consumer education plan, subject to approval by the 23
department. Beverage containers must have a visible brand to be 24
considered a covered beverage container and to be eligible for a 25
refund value. 26
(10) "Department" means the department of ecology.27
(11) "Express redemption site" means a designated return point or 28
avenue that allows consumers to return covered beverage containers. 29
These locations will not require cash handling on-site, rather, upon 30
return, containers will be transported to centralized processing 31
facilities and refunds will be credited to the consumer's virtual 32
account held by the recycling refund producer responsibility 33
organization or their designee. This may include bag-drop systems, 34
reverse vending machines, or other collection modalities to enhance 35
convenience and accessibility for consumers. 36
(12) "Full service redemption site" means a return point or 37
avenue where individuals may return covered beverage containers to 38
receive immediate refunds for their returns. 39
(13) "Local government" has the same meaning as in RCW 39.46.020.40
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(14) "Material recovery facility" means a facility that collects, 1
compacts, repackages, sorts, or processes for transport source 2
separated material for the purpose of recycling. 3
(15) "On-site consumption" means a beverage in a covered beverage 4
container sold by an establishment that is intended to be consumed 5
and retained at the same establishment after consumption.6
(16) "Packaging manufacturer" means any person, firm, 7
association, partnership, or corporation that produces packaging or a 8
packaging component of covered beverage containers.9
(17) "Producer" means the brand owner responsible for the brand 10
visible on a covered beverage container and who is responsible for 11
compliance with the requirements under this chapter for a covered 12
beverage container that is sold or offered for sale, either 13
physically or via e-commerce, in this state. "Producer" does not 14
include: 15
(a) Government entities; or 16
(b) Registered 501 (c)(3) charitable organizations and 501 (c)(4) 17
social welfare organizations. 18
(18) "Recycling refund" means a covered beverage container 19
redemption program that pays a per-unit refund value to consumers for 20
covered beverage containers and collects and processes covered 21
beverage containers as described in this chapter. 22
(19) "Recycling refund advisory council" means the council 23
established in section 8 of this act. 24
(20) "Recycling refund processing facility" means a location that 25
is designated by the recycling refund producer responsibility 26
organization to receive, sort, and prepare beverage containers 27
collected through the system for recycling or reuse.28
(21) "Recycling refund producer responsibility organization" 29
means a nonprofit corporation that is tax exempt under chapter 30
501(c)(3) of the federal internal revenue code created by a group of 31
recycling refund covered beverage container producers to implement 32
activities under this act. 33
(22) "Redemption site" means a public or private place that 34
provides the ability to redeem a covered beverage container for which 35
a recycling refund value was paid. 36
(23) "Retail establishment" means any person, corporation, 37
partnership, business, dealer, facility, vendor, organization, or 38
individual that sells or provides merchandise, goods, or materials 39
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directly to a consumer that engages in the sale of beverages that are 1
covered beverage containers intended for consumption off-site.2
(24) "Service provider" means an entity that provides recycling 3
collection or recycling processing services for covered beverage 4
containers. A government entity that provides, contracts for, or 5
otherwise arranges for another party to provide recycling collection 6
or recycling processing services for covered beverage container 7
materials within its jurisdiction may be a service provider 8
regardless of whether it provided, contracted, or otherwise arranged 9
for similar services before the approval of the applicable plan.10
(25) "Socially vulnerable populations" means populations 11
including, but not limited to, individuals with disabilities, 12
individuals without vehicles, older adults, individuals with low 13
incomes or experiencing homelessness, and individuals with limited 14
English proficiency. 15
NEW SECTION. Sec. 3. PRODUCER AND RECYCLING REFUND PRODUCER 16
RESPONSIBILITY ORGANIZATION REGISTRATION. (1) By March 1, 2026, each 17
producer must appoint a recycling refund producer responsibility 18
organization to address its covered materials.19
(2) By May 1, 2026, and annually thereafter, a recycling refund 20
producer responsibility organization must register with the 21
department on behalf of its producers. A registration submission by a 22
recycling refund producer responsibility organization must include 23
the following: 24
(a) Contact information for a person responsible for implementing 25
an approved plan; 26
(b) A list of all member producers that have entered into written 27
agreements to operate under an approved plan by the recycling refund 28
producer responsibility organization, copies of the written 29
agreements for each member producer and, except in the first year of 30
registration, a list of all brands of each producer's covered 31
materials introduced; 32
(c) A plan for recruiting additional member producers and 33
executing written agreements confirming producers will operate under 34
an approved plan administered by the recycling refund producer 35
responsibility organization; 36
(d) A list of current board members and the executive director if 37
different than the person responsible for implementing approved 38
plans; and 39
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(e) Documentation demonstrating adequate financial responsibility 1
and financial controls to ensure proper management of funds and 2
payment of the annual registration fee to the department.3
(3) By June 1, 2026, and each June 1st thereafter, recycling 4
refund producer responsibility organizations must submit an annual 5
registration fee to the department to fund all costs of the 6
department to implement, administer, and enforce this chapter.7
NEW SECTION. Sec. 4. PRODUCER RESPONSIBILITIES. (1) A producer 8
must:9
(a) Beginning April 1, 2026, be a member of a recycling refund 10
producer responsibility organization registered in this state;11
(b) Through a recycling refund producer responsibility 12
organization, implement and finance a statewide program for covered 13
beverage containers that encourages waste reduction, recycling, 14
refill, and reuse; 15
(c) Maintain membership with and pay fees to the recycling refund 16
producer responsibility organization under which they are registered; 17
and 18
(d) Comply with all other applicable requirements under this 19
chapter. 20
(2) Upon registration with a recycling refund producer 21
responsibility organization under subsection (1)(a) of this section, 22
the producer must provide the following to the recycling refund 23
producer responsibility organization before the beverage brand is 24
offered for sale, either physically or via e-commerce:25
(a) The adequate refund value to the recycling refund producer 26
responsibility organization to cover existing or projected refund 27
liabilities associated with that brand, excluding units sold at on-28
site consumption establishments; 29
(b) Detailed information for the brand for the recycling refund 30
producer responsibility organization, including: 31
(i) The name of the covered beverage in the beverage container as 32
identified through the use of letters, words, or symbols on the 33
product label affixed to, or a part of, the covered beverage 34
container; 35
(ii) The type of beverage contained in the beverage container 36
using an appropriate categorization method for beverages as 37
determined by the recycling refund producer responsibility 38
organization; 39
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(iii) The number of covered beverage containers sold or offered 1
for sale; 2
(iv) The volume of the beverage container; 3
(v) The material type of the container; and 4
(vi) The universal product code or European article number 5
associated with the container. 6
(3) A producer must provide the brand sales information for 7
covered beverage containers to the recycling refund producer 8
responsibility organization under which they are registered by 9
January 15th and July 15th of each calendar year, covering the 10
previous six-month period. 11
(4) The requirements of subsection (2) of this section do not 12
apply to units of the brand that the producer can show have been 13
delivered for sale at an on-site consumption establishment.14
(5) Beginning October 1, 2026, a producer that is not in 15
compliance with this chapter may not sell or supply covered beverage 16
containers into Washington. 17
NEW SECTION. Sec. 5. RECYCLING REFUND PRODUCER RESPONSIBILITY 18
ORGANIZATION RESPONSIBILITIES. A recycling refund producer 19
responsibility organization must:20
(1) Beginning March 1, 2026, register with the department;21
(2) By September 1, 2026, submit a one-time payment to the 22
department, in lieu of the registration fee required in section 3 of 23
this act, in an amount determined by the department, to cover the 24
costs of the department under this chapter from the effective date of 25
this section through implementation of this section;26
(3) Establish an initial producer fee structure to fund the 27
initial implementation of the program, to be used until the recycling 28
refund producer responsibility organization has an approved program 29
plan as required under section 7 of this act, and collect fees 30
annually from registered producers; 31
(4) By January 30, 2027, submit the following:32
(a) A list of its registered producers and their brands of 33
beverages in covered beverage containers; and 34
(b) The total gross unit sales volume of beverages in covered 35
beverage containers sold by its registered producers in Washington 36
during the preceding year; 37
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(5) By July 1, 2027, and every five years thereafter, submit a 1
plan that meets the requirements of this chapter to the department 2
for approval; 3
(6) Once the recycling program and consumer education plan is 4
approved by the department under section 5 of this act, implement a 5
recycling refund program as described in its approved program plan by 6
July 1, 2028; 7
(7) Maintain a registry of all types of covered beverage 8
containers sold and redeemed in this state by all registered 9
producers; 10
(8) Collect the annual producer fees; 11
(9) Accept the adequate refund value from producers for covered 12
beverage containers to cover existing or projected refund liabilities 13
associated with that brand, excluding units sold to an on-site 14
consumption establishment; 15
(10) Submit a proposed list of covered beverage containers and 16
material exemptions to the department as part of the recycling refund 17
program and consumer education plan; 18
(11) Submit the annual reports required under section 21 of this 19
act; 20
(12) Ensure that producers operating under a recycling refund 21
program and consumer education plan administered by the recycling 22
refund producer responsibility organization comply with the 23
requirements of the recycling refund program consumer education plan 24
and with this act; 25
(13) Consider and respond in writing to comments received from 26
the recycling refund advisory council; 27
(14) Maintain a website that includes: 28
(a) A searchable database of current redemption sites; and29
(b) Consumer education materials about the recycling refund 30
program; 31
(15) Notify the department within 30 days of a change made to the 32
contact information for a person responsible for implementing the 33
recycling refund producer program plan, to board membership, or to 34
the executive director; 35
(16) Assist service providers to identify and use responsible end 36
markets; 37
(17) Ensure timely, negotiated, and fair compensation, 38
maintenance, and operational costs to entities that are leasing space 39
for redemption sites; and 40
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(18) Comply with all other applicable requirements of this 1
chapter. 2
NEW SECTION. Sec. 6. DEPARTMENT OF ECOLOGY RESPONSIBILITIES. 3
(1) The department must implement, administer, and enforce this 4
chapter and may adopt rules as necessary for those purposes. In 5
implementing this chapter, the department has the following 6
responsibilities:7
(a) By January 1, 2026, appoint the initial membership of the 8
recycling refund advisory council, as required under section 8 of 9
this act; 10
(b) Provide administrative and operating support to the recycling 11
refund advisory council, as required under section 8 of this act;12
(c) Consider and respond in writing to all written comments 13
received by the recycling refund advisory council;14
(d) By March 15, 2026, accept the registration of a recycling 15
refund producer responsibility organization; 16
(e) By May 1, 2026, and every May 1st thereafter, determine a 17
total annual registration fee to be paid by the recycling refund 18
producer responsibility organization that is adequate to cover, but 19
not exceed, the costs to implement, administer, and enforce this 20
chapter in the preceding fiscal year; 21
(f) Within 120 days of receipt, review and approve, deny, or 22
request additional information for the draft recycling refund program 23
and consumer education plan required under section 7 of this act, 24
and: 25
(i) The department must post the draft plan or plan amendment 26
update on the department's website and allow public comment for no 27
less than 45 days before approving, denying, or requesting additional 28
information on the draft plan or amendment; 29
(ii) If the department denies or requests additional information 30
for a draft plan or amendment, the department must provide the 31
recycling refund producer responsibility organization with the 32
reasons, in writing, that the plan or amendment does not meet the 33
plan requirements of section 7 of this act. The recycling refund 34
producer responsibility organization has 60 days from the date that 35
the rejection or request for additional information is received to 36
submit to the department any additional information necessary for the 37
department's approval. The department must review and approve or 38
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disapprove the revised draft plan or amendment no later than 60 days 1
after the department receives it; 2
(iii) Upon recommendation of the recycling refund advisory 3
council, or upon the department's initiative, the department may 4
require an amendment to the plan if the department determines that an 5
amendment is necessary to ensure that the recycling refund producer 6
responsibility organization maintains compliance with the 7
requirements of this chapter; and 8
(iv) Prior to approving the draft plan, the department must 9
review the convenience standards provided in the plan as required 10
under section 11 of this act using the following criteria:11
(A) Proximity to a majority of recycling refund covered materials 12
sales in an area; 13
(B) Access in rural counties does not require additional vehicle 14
miles traveled; and 15
(C) Redemption sites must not disproportionately impact 16
overburdened communities or populations; 17
(g) Review annual reports and: 18
(i) Make annual reports available for public review and comment 19
for at least 30 days; 20
(ii) Review within 120 days of receipt of a complete annual 21
report; 22
(iii) Determine whether an annual report meets the requirements 23
of this chapter, considering comments received under (f) of this 24
subsection, and notify the recycling refund producer responsibility 25
organization of the approval or reasons for denial. The recycling 26
refund producer responsibility organization must submit a revised 27
annual report within 60 days after receipt of the denial letter; and28
(iv) Notify a recycling refund producer responsibility 29
organization if the annual report demonstrates that a plan fails to 30
achieve the requirements under this chapter; 31
(h) Establish a public website that includes: 32
(i) The most recent registration materials submitted by the 33
recycling refund producer responsibility organization;34
(ii) Any plan or amendment submitted by the recycling refund 35
producer responsibility organization that is in draft form during a 36
public comment period; and 37
(iii) The most recent lists of covered beverage containers 38
developed by the recycling refund producer responsibility 39
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organization and information about any material exclusions as 1
described in section 10 of this act. 2
NEW SECTION. Sec. 7. RECYCLING REFUND PROGRAM AND CONSUMER 3
EDUCATION PLAN. The recycling refund program and consumer education 4
plan submitted to the department must contain the following:5
(1) A list of the types of covered beverage containers that will 6
be included in the recycling refund program as well as material 7
exemptions; 8
(2) Proposed targets and deadlines for reuse and refill to be 9
achieved; 10
(3) A description of how the recycling refund producer 11
responsibility organization will meet performance targets for 12
redemption, recycling, and reuse and refill as described in section 13
18 of this act; 14
(4) How the performance targets will be measured;15
(5) How to achieve the objectives for the expansion of reuse and 16
refill systems; 17
(6) How the program will incentivize recyclability improvements 18
in the design of covered beverage containers; 19
(7) How the proposed network of redemption sites meets the 20
convenience standards and addresses the evaluation criteria in this 21
act; 22
(8) How the program will conduct statewide education and 23
outreach; 24
(9) How the program will conduct education and outreach and 25
provide redemption sites to socially vulnerable populations;26
(10) How the redemption network will be convenient and available 27
to geographically diverse populations and to those that redeem 28
relatively large amounts of covered beverage containers;29
(11) What, if any, alternative access redemption options may be 30
implemented to increase convenience; 31
(12) Descriptions of a process to develop recommendations 32
regarding the effectiveness of the plan and a timeline for 33
implementing the findings of those recommendations;34
(13) A schedule of proposed recycling refund covered beverage 35
container producer fees that shall: 36
(a) In the first fee setting period, ensure that each packaging 37
type is responsible for covering its own associated costs for 38
material recycling; and 39
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(b) In subsequent fee setting periods after the first fee setting 1
period, consider incentivizing using materials and design attributes 2
that reduce the environmental impacts and human health impacts of 3
covered beverage containers. 4
(14) A description of how the recycling refund producer 5
responsibility organization will establish partnerships with 6
nonprofit organizations, including: 7
(a) The refund value nonprofit organizations are eligible for 8
under the program; 9
(b) A process for annually reporting to the department regarding 10
the names, locations, return volume, and any other services provided 11
through the nonprofit partnership; 12
(c) Locations of nonprofit partnership drop sites; and13
(d) Any program rules associated with the nonprofit redemption 14
program. 15
NEW SECTION. Sec. 8. RECYCLING REFUND ADVISORY COUNCIL. (1) The 16
recycling refund advisory council is established to review activities 17
conducted by recycling refund producer responsibility organizations 18
created under section 3 of this act.19
(2) By January 1, 2026, the department must establish and appoint 20
the initial membership of the recycling refund advisory council. The 21
membership of the recycling refund advisory council must consist of 22
the following: 23
(a) One member representing municipal government;24
(b) One member representing county government;25
(c) One member representing a packaging manufacturer or trade 26
association representing the glass beverage container sector. The 27
packaging manufacturer of the trade association must not be a 28
producer; 29
(d) One member representing a packaging manufacturer or trade 30
association that is not a producer that represents the plastic 31
covered beverage container sector; 32
(e) One member representing a packaging manufacturer or trade 33
association that is not a producer that represents the metal covered 34
beverage container sector; 35
(f) One member representing an environmental nonprofit 36
organization; 37
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(g) One member representing an organization that represents 1
vulnerable populations or an individual representing the office of 2
equity under chapter 43.06D RCW; 3
(h) One member that is a representative of an organization that 4
represents individual service providers; 5
(i) Two members representing federally recognized tribes located 6
in Washington state; 7
(j) One member representing a trade association for the retail 8
sector; 9
(k) One member representing a trade association for the 10
hospitality sector; and 11
(l) One member representing the recycling processing sector.12
(3) The recycling refund advisory council has the following 13
duties: 14
(a) Review the recycling refund program and consumer education 15
plan and provide comments to the recycling refund producer 16
responsibility organization and the department; 17
(b) Review program audits; 18
(c) Review annual reports and provide comments to the recycling 19
refund producer responsibility organizations and the department; and20
(d) Ensure that the recycling refund producer responsibility 21
organization and the department are considering a broad range of 22
perspectives in developing the recycling refund program plans and in 23
implementing the program. 24
(4) The department shall provide administrative and operating 25
support to the recycling refund advisory council and may contract 26
with a third-party facilitator to assist in administering the 27
activities of the recycling refund advisory council.28
NEW SECTION. Sec. 9. APPLICABLE REFUND VALUE. (1) Every covered 29
beverage container sold or offered for sale in the state has a refund 30
value of 10 cents. The charge for the refund value of covered 31
beverage containers must be separately stated on a receipt, invoice, 32
or similar billing document given to the consumer.33
(2) Amounts received or transferred as part of remitting the 34
refund value on covered beverage containers within the recycling 35
refund program shall be exempt from taxation under chapter 82.04 RCW.36
(a) This exemption applies to all transactions involving 37
remitting the refund value as it moves between producers, retail 38
establishments, and other participants within the distribution chain, 39
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provided the amounts are designated as refunds under the recycling 1
refund program. 2
(b) The exemption only applies to amounts that are directly tied 3
to the refund value and do not present any other taxable sales, 4
services, or revenue. 5
NEW SECTION. Sec. 10. MATERIAL EXCLUSIONS. A recycling refund 6
producer responsibility organization is not required to pay refunds 7
on:8
(1) A covered beverage container visibly containing or 9
contaminated by a substance other than water, or residue of the 10
original contents; 11
(2) A covered beverage container that the recycling refund 12
producer responsibility organization has reasonable grounds to 13
believe was purchased in a state other than Washington; and14
(3) Any beverage container that is crushed, broken, or damaged to 15
the extent that the brand appearing on the beverage container cannot 16
be identified. This requirement does not apply to metal and plastic 17
covered beverage containers processed by material recovery facilities 18
before extended producer responsibility is implemented.19
NEW SECTION. Sec. 11. CONVENIENCE STANDARD FOR REDEMPTION OF 20
CONTAINERS. A recycling refund producer responsibility organization 21
must propose a quantitative convenience standard that is based on a 22
combination of time, distance, and other measurable factors for 23
redemption of covered beverage containers in the recycling refund 24
program plan that includes the following:25
(1) Ensures all consumers who pay a refund value have convenient 26
opportunities to redeem their full refund for covered beverage 27
containers; 28
(2) Provides appropriately convenient and equitable access in 29
urban, suburban, and rural areas, and which draws upon redemption 30
modalities including, but not limited to, express redemption sites, 31
full-service redemption sites, alternative access plans, contracted 32
redemption pick-up operators, and special collection events;33
(3) Accounts for the total population, population density, sales 34
of covered beverage containers in regions of the state, and proximity 35
to centers of beverage sales business activity; and36
(4) Incorporates a broad range of entities that may opt to serve 37
as a redemption location including, but not limited to, municipal 38
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facilities, public spaces, nonprofit organizations, retailers, 1
religious and charitable organizations, sporting events, and waste 2
management facilities. 3
NEW SECTION. Sec. 12. REQUIREMENTS FOR REDEMPTION SITES. (1) 4
Each redemption site must collect all covered beverage containers 5
subject to the recycling refund except as excluded by section 10 of 6
this act. Any location serving as a redemption site shall be fairly 7
compensated through a mutual agreement by the recycling refund 8
producer responsibility organization for providing physical space for 9
redemption and associated maintenance and operational costs of the 10
redemption sites, for the duration of the approved program plan.11
(2) A recycling refund producer responsibility organization shall 12
provide a sufficient number and distribution of redemption sites to 13
achieve the redemption rate performance and convenience requirements 14
of this chapter. A recycling refund producer responsibility 15
organization's plan submitted to the department must provide an 16
analysis and rationale supporting how the recycling refund producer 17
responsibility organization's proposed distribution of redemption 18
sites is designed to meet the redemption rate performance and 19
convenience requirements included in this chapter.20
(3) Local governments, nonprofit organizations, individuals, and 21
private organizations are eligible to host redemption sites.22
(4) A recycling refund producer responsibility organization may 23
accept direct, sorted returns in commercial quantities at its 24
processing facilities from full service redemption sites or express 25
redemption sites. 26
NEW SECTION. Sec. 13. EXPRESS REDEMPTION SITES. (1) A recycling 27
refund producer responsibility organization must, at its own cost, 28
provide convenient designated return points or avenues that allow 29
consumers to return covered beverage containers. These sites shall be 30
known as express redemption sites and will not require cash handling 31
on-site, rather upon return, containers will be transported to 32
centralized processing facilities, and refunds will be credited to 33
the consumer's virtual account. If bag-drop programs are deployed, 34
the recycling refund producer responsibility organization must credit 35
the cost of any required bag purchase back to the consumer when the 36
bag is returned and processed through the recycling refund system.37
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(2) Designated return points must be located a convenient 1
distance from a retail establishment, located at a publicly owned 2
facility, located at a privately owned facility, or are at a location 3
otherwise convenient for consumers. Express drop-off redemption sites 4
may be located in the parking lot of a retail establishment, parking 5
lot of a privately owned facility, parking lot of a publicly owned 6
facility, public right-of-way, or any other location convenient to 7
consumers. 8
(3) Storage and drop-off containers sited for the purpose of 9
fulfilling the requirements of this section are considered temporary 10
mobile containers regardless of whether they have wheels, have 11
electrical power, or are affixed to the site. 12
(4) If the standard bags for the bag-drop programs are made of 13
plastic film, the recycling refund producer responsibility 14
organization must: 15
(a) Ensure that the standard bags have a minimum of 50 percent 16
postconsumer recycled content; 17
(b) Demonstrate, upon request of the department, that the waste 18
film from the standard bag production or from retired standard bags 19
is being recycled at responsible end markets; and 20
(c) Include instructions on how the bag should be utilized and 21
recycled through a drop-off program. 22
NEW SECTION. Sec. 14. NONPROFIT RECYCLING REFUND REDEMPTION 23
PROGRAM. (1) A recycling refund producer responsibility organization 24
may administer a program for nonprofit organizations to participate 25
in the recycling refund redemption program. The nonprofit program may 26
provide, either directly or through partnerships with local service 27
providers or local governments, support services for socially 28
vulnerable populations.29
(2) A recycling refund producer responsibility organization may 30
administer a program to also accept direct, sorted returns in large 31
volume quantities at its processing facilities for an additional 32
refund value premium if the containers are returned by organizations 33
certified as a nonprofit organization pursuant to section 501 (c)(3) 34
of the internal revenue code that are approved by the recycling 35
refund producer responsibility organization and serve very low-income 36
individuals who rely on regular container refunds through the 37
recycling refund system as a source of daily funds. The recycling 38
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refund producer responsibility organization may provide pick-up 1
service for containers collected under this section.2
(3) To limit fraud and ensure that services are deployed where 3
they are most needed, a recycling refund producer responsibility 4
organization may approve or deny partnerships described in this 5
section at its sole discretion. 6
NEW SECTION. Sec. 15. RETAIL ESTABLISHMENTS. (1) Each retail 7
establishment must charge for the refund value of covered beverage 8
containers. The refund value shall be separately stated on a receipt, 9
invoice, or similar billing document given to the consumer.10
(2) A retail establishment larger than 20,000 square feet must 11
sell the standard bags for the redemption program at the price 12
established by a recycling refund producer responsibility 13
organization. 14
(3) A retail establishment may choose to host an express 15
redemption site or host a collection event, or both, in their parking 16
lot through mutual agreement with a recycling refund producer 17
responsibility organization who will provide fair compensation and 18
assume lease costs, and all operational and maintenance costs for the 19
redemption site. While retail establishments may choose to host a 20
redemption site, nothing in this chapter shall be interpreted to 21
create a legal obligation on the part of a retail establishment to 22
either accept a returned covered beverage container or allow a 23
redemption site to be sited at a retail establishment.24
(4) A retail establishment that chooses to host an express 25
redemption site is eligible to have a self-serve kiosk, located at 26
the retailer at no charge by a recycling refund producer 27
responsibility organization, to facilitate the printing of redemption 28
vouchers and pay the value of redemption vouchers to consumers that 29
can be used on the premises. 30
(5) A recycling refund producer responsibility organization shall 31
reimburse retailers for the value of valid vouchers redeemed by 32
consumers. 33
(6) Retailers may offer a voucher redemption option for recycling 34
refund values to be used as store credit. Under this program, 35
retailers may offer consumers an additional bonus above the standard 36
refund value when redeemed deposit refunds are applied toward 37
purchases within the store. 38
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NEW SECTION. Sec. 16. ON-SITE CONSUMPTION ESTABLISHMENTS. (1) 1
Recycling refund producer responsibility organizations shall 2
facilitate the collection of covered beverage containers from on-site 3
establishments. Recycling refund producer responsibility 4
organizations shall promote efficiency and mitigate burdens in 5
collecting empty beverage containers and provide additional material 6
assistance for establishments under 5,000 square feet to comply with 7
this act.8
(2) On-site consumption establishments may choose to host an 9
express redemption site on their property through mutual agreement 10
with a recycling refund producer responsibility organization which 11
will provide fair compensation and assume lease costs, and all 12
operational and maintenance costs for the site. 13
(3) A recycling refund producer responsibility organization may 14
work with and compensate distributors, contracted express redemption 15
site operators, or other entities to help facilitate the collection 16
of covered beverage containers from on-site consumption 17
establishments for recycling. 18
NEW SECTION. Sec. 17. USE OF UNREDEEMED REFUNDS. Recycling 19
refund producer responsibility organizations may use any refund value 20
that is not redeemed by the consumer for any of the following 21
purposes:22
(1) Education and outreach activities to encourage redemption 23
activity; 24
(2) Improving existing redemption rates; 25
(3) Increasing the number of redemption sites; or26
(4) Other activities that are described in the recycling refund 27
program plan that directly contribute to achieving the performance 28
requirements described in section 18 of this act and the convenience 29
standards described in section 11 of this act. 30
NEW SECTION. Sec. 18. PERFORMANCE REQUIREMENTS FOR THE 31
RECYCLING REFUND PROGRAM. Recycling refund producer responsibility 32
organizations must achieve the following performance requirements:33
(1) By the end of year two of the program, the redemption rate 34
must be greater than 65 percent aggregated for all covered beverage 35
containers; 36
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(2) By the end of year five of the program, the redemption rate 1
must be greater than 80 percent aggregated for all covered beverage 2
containers; 3
(3) Develop a reuse and refill performance target that is to 4
increase each year after the first plan period; 5
(4) Demonstrate that convenience standards as required under 6
section 11 of this act have been achieved or exceeded;7
(5) Provide results of consumer awareness and behavior surveys.8
NEW SECTION. Sec. 19. REFUND VALUE TO MATERIAL RECOVERY 9
FACILITIES. (1) Starting after the first full month that covered 10
beverage containers are sold with the applicable refund value, 11
recycling refund producer responsibility organizations shall make a 12
monthly payment directly to each material recovery facility who 13
complies with the reporting criteria outlined in section 21 of this 14
act. Payments are to be based on the data submitted by the material 15
recovery facility under subsection (3) of this section.16
(2) Recycling refund producer responsibility organizations shall 17
establish a quality standard for each material. 18
(3) On a monthly basis, the operator of a material recovery 19
facility shall submit the following information to the recycling 20
refund producer responsibility organization: 21
(a) The number of tons of covered beverage containers the 22
facility received for processing in the previous month by material; 23
and 24
(b) The number of tons of covered beverage containers the 25
facility transferred to additional materials processing or end 26
markets. 27
(4) A recycling refund producer responsibility organization must 28
convert the material tons to unit equivalent and pay the facilities 29
based on covered beverage containers that meet the designated quality 30
standards. 31
(5) The monthly payment required to material recovery facilities 32
must be a payment equivalent to at least 50 percent of the refund 33
value for covered beverage containers for each covered beverage 34
container material that the material recovery facility transferred to 35
additional materials processing or end markets. 36
(6) Material recovery facilities must share the payments with 37
their consumers consistent with their bundled services or processing 38
contract agreements and supply agreements so that communities and 39
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generators receive the appropriate amount of the refund values paid 1
to material recovery facilities and drop-off facilities.2
(7) The operators of material recovery facilities shall use an 3
industry standard scale to measure the weight of all covered beverage 4
container materials that enter the facility. 5
(8) A recycling refund producer responsibility organization may 6
conduct quarterly audits on the quality and quantity of the material 7
recovery facilities' material upon request by the organization and at 8
the organization's expense. 9
(9) A recycling refund producer responsibility organization may 10
partner with a material recovery facility to provide space and 11
install the necessary equipment to colocate a recycling refund 12
processing facility in the same vicinity. Recycling refund processing 13
facilities shall be designated by the recycling refund producer 14
responsibility organization to receive, sort, and prepare beverage 15
containers collected through the system for recycling or reuse.16
(10) Monthly payments to the material recovery facilities as 17
provided for under this section are no longer required after the 18
first program plan period concludes under the recycling refund 19
program. 20
NEW SECTION. Sec. 20. COORDINATION PLAN. (1) If an extended 21
producer responsibility program for paper and packaging is enacted in 22
the state, the producer responsibility organization for packaging and 23
a recycling refund producer responsibility organization must create a 24
coordination plan to ensure that programs are complementary and that 25
all targets are met. As part of the coordination plan, the packaging 26
producer responsibility organization and a recycling refund producer 27
responsibility organization are to identify actions to jointly 28
optimize infrastructure for reuse and refill programs for recycling 29
refund and packaging covered materials.30
(2) The coordination plan between the producer responsibility 31
organization for paper and packaging and a recycling refund producer 32
responsibility organization must contain the following:33
(a) Education and outreach activities to ensure consistent 34
messaging to consumers; 35
(b) A description of a reciprocal compensation mechanism such 36
that a recycling refund producer responsibility organization pays the 37
paper and packaging producer responsibility organization for covered 38
beverage containers in material recovery facilities, and the 39
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packaging producer responsibility organization pays a recycling 1
refund producer organization for secondary packaging managed through 2
the recycling refund system; 3
(c) Mechanisms to evaluate packages and formats managed by each 4
program and consider opportunities for adding and removing packages 5
from one program to the other; 6
(d) An evaluation strategy to assess opportunities to coordinate 7
identification of, and efficient access to, processing 8
infrastructure, reuse and refill infrastructure, and end markets.9
NEW SECTION. Sec. 21. REPORTING. (1) Recycling refund producer 10
responsibility organizations must submit an annual report to the 11
department that contains the following:12
(a) A list of registered producers participating in the program 13
and covered beverage containers supplied into the state;14
(b) The total gross unit sales volume of beverages in covered 15
beverage containers sold by its registered producers in Washington 16
during the preceding year; 17
(c) Covered beverage containers redeemed and recycled through the 18
program, by material type; 19
(d) Redemption sites and processing facilities participating in 20
the recycling refund program; and 21
(e) Verification of covered beverage containers handled at 22
responsible end markets. 23
(2) An evaluation of the convenience of the program including:24
(a) Proximity of redemption sites to the volume covered beverage 25
container materials sales in each area of the state;26
(b) Verification that access to redemption sites in rural 27
counties does not require additional vehicle miles traveled;28
(c) Documentation that access to redemption sites in urban areas 29
builds on existing recycling convenience; 30
(d) Documentation of large volume redemption options;31
(e) An evaluation of whether redemption options 32
disproportionately burden underserved communities or socially 33
vulnerable populations; 34
(f) Results of consumer awareness and behavior surveys;35
(g) Progress made toward the performance targets reported in the 36
same units used to establish producer fees under section 5 of this 37
act and reported statewide, for each county, and for each city with a 38
population greater than 1.5 percent of the state population, 39
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including the amount of recycling refund covered beverage containers 1
successfully reused, recycled, and disposed of by recycling refund 2
covered materials type and the type of redemption site used;3
(h) The total cost to implement the program and a detailed 4
description of program expenditures by category, including:5
(i) The total amount of producer fees collected, unclaimed 6
refunds held, and scrap value realized on the sale of recycled 7
commodities; 8
(ii) A description of infrastructure investments made;9
(iii) A breakdown of reimbursements to redemption sites and 10
service providers in the state; and 11
(iv) A copy of a financial audit of program operations conducted 12
by an independent auditor; 13
(i) A list of producers found to be out of compliance with this 14
act and actions taken by the recycling refund producer responsibility 15
organization to return producers to compliance, and notification of 16
any producers that are no longer participating in the organization or 17
have been expelled due to their lack of compliance with proposed 18
amendments to the recycling refund program plan to improve program 19
performance or reduce costs, including changes to producer fees, 20
infrastructure investments, reimbursement rates, or the refund value; 21
and 22
(j) Recommendations for additions or removals of covered beverage 23
containers to the list developed under section 5 of this act.24
(3) All data reported by a recycling refund producer 25
responsibility organization under this section must, at the request 26
of the department no more than once annually, be audited by an 27
independent third party. A recycling refund producer responsibility 28
organization is responsible for all costs associated with the data 29
audit. Auditable data shall only include data held by a recycling 30
refund producer responsibility organization. Auditing of any data 31
inputs to a recycling refund producer responsibility organization is 32
the responsibility of the recycling refund producer responsibility 33
organization. 34
(4) A recycling refund producer responsibility organization that 35
submits information or records to the department under this chapter 36
may request that a portion of the information or records be made 37
available only for the confidential use of the department, the 38
director, or the appropriate division of the department. The director 39
of the department shall give consideration to the request, and if the 40
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director determines that this action is not detrimental to the public 1
interest and is otherwise in accordance with policies and purposes of 2
chapter 43.21A RCW, the director must grant the request for the 3
information to remain confidential as authorized in RCW 43.21A.160.4
NEW SECTION. Sec. 22. A recycling refund producer 5
responsibility organization that fails to meet a performance target 6
approved in a recycling refund program plan must, within 90 days of 7
filing an annual report under section 21 of this act, file with the 8
department an explanation of the factors contributing to the failure 9
and propose an amendment to the recycling refund program plan 10
specifying changes in operations that the recycling refund producer 11
responsibility organization will make that are designed to achieve 12
the performance targets. An amendment filed under this section must 13
be reviewed by the recycling refund advisory council and reviewed and 14
approved by the department.15
NEW SECTION. Sec. 23. By August 1, 2028, and each year 16
thereafter, each material recovery facility and material processor 17
that receives recycling refund program covered materials must report 18
to the department the following:19
(1) Amount of recycling refund covered materials accepted by the 20
material recovery facility or processor, and the location of 21
generation; 22
(2) Amount of material sold to market, by commodity type;23
(3) Amount of residue or waste that was generated;24
(4) End markets where materials were marketed, by region and type 25
of end use; and 26
(5) Verification that end markets are responsible and compliant 27
with program requirements. 28
NEW SECTION. Sec. 24. ANTICOMPETITIVE CONDUCT. A recycling 29
refund producer responsibility organization that arranges redemption, 30
recycling, waste reduction, or reuse services under this act may 31
engage in anticompetitive conduct to the extent necessary to plan and 32
implement redemption, recycling, waste reduction, or reuse systems to 33
meet the obligations under this act, and is immune from liability 34
under state laws relating to antitrust, restraint of trade, and 35
unfair trade practices.36
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NEW SECTION. Sec. 25. ENFORCEMENT. (1) The following penalties 1
apply to producers:2
(a) The department may administratively impose a civil penalty of 3
up to $1,000 per violation per day on any producer who violates this 4
chapter and up to $10,000 per violation per day for the second and 5
each subsequent violation. 6
(b) For a producer out of compliance with the requirements of 7
this chapter, the department shall provide written notification and 8
offer information. For the purposes of this section, written 9
notification serves as notice of the violation. The department must 10
issue at least one notice of violation by certified mail prior to 11
assessing a penalty and the department may only impose a penalty on a 12
producer that has not met the requirements of this chapter 60 days 13
following the date the written notification of the violation was 14
sent. 15
(2) The following penalties apply to any recycling refund 16
producer responsibility organization: 17
(a) The department may administratively impose a civil penalty of 18
up to $1,000 per violation per day on any recycling refund producer 19
responsibility organization that violates this chapter and up to 20
$10,000 per violation per day for the second and each subsequent 21
violation in any calendar year. 22
(b) The department may, in addition to assessing the penalties 23
provided in (a) of this subsection, take any combination of the 24
following actions: 25
(i) Issue a corrective action order to a producer or a recycling 26
refund producer responsibility organization; 27
(ii) Issue an order to a recycling refund producer responsibility 28
organization to provide for the continued implementation of the 29
program in the absence of an approved plan; 30
(iii) Revoke the recycling refund producer responsibility 31
organization's plan approval and require implementation of the 32
contingency plan; 33
(iv) Require a recycling refund producer responsibility 34
organization to revise or resubmit a plan within a specified time 35
frame; or 36
(v) Require additional reporting related to the area of 37
noncompliance. 38
(3) A person may not sell or distribute in or into the state a 39
covered beverage container of a producer that is not participating in 40
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a recycling refund producer responsibility organization. It is not a 1
violation to distribute a covered beverage container of a producer 2
exempt from this chapter. 3
(a) The department shall serve, or send with delivery 4
confirmation, a written warning explaining the violation to a person 5
distributing or selling covered products of a producer that is not in 6
compliance with this chapter. 7
(b) The department may assess a penalty on a person that 8
continues to sell or distribute covered beverage containers of a 9
producer that is in violation of this chapter 60 days after receipt 10
of the written warning under this subsection. The amount of the 11
penalty that the department may assess under this subsection is twice 12
the value of the covered beverage containers sold in violation of 13
this chapter or $500, whichever is greater. The department must waive 14
the penalty upon verification that the person has discontinued 15
distribution or sales of the covered beverage containers within 30 16
days of the date the penalty is assessed. 17
(4) Any person who incurs a penalty or receives an order may 18
appeal the penalty or order to the pollution control hearings board.19
(5) Penalties levied under this section must be deposited in the 20
recycling refund program account created in section 26 of this act.21
(6) Upon receipt of a request from the recycling refund advisory 22
council, the department must consider the appropriateness of the use 23
of enforcement authority authorized in this section.24
NEW SECTION. Sec. 26. RECYCLING REFUND PROGRAM ACCOUNT. The 25
recycling refund program account is created in the custody of the 26
state treasurer. All receipts received by the department under this 27
chapter must be deposited in the account. Expenditures from the 28
account may be used by the department only for implementing, 29
administering, and enforcing the requirements of this chapter. Only 30
the director of the department may authorize expenditures from the 31
account. The account is subject to the allotment procedures under 32
chapter 43.88 RCW, but an appropriation is not required for 33
expenditures.34
NEW SECTION. Sec. 27. A new section is added to chapter 82.04 35
RCW to read as follows: 36
In computing tax due under this chapter, a taxpayer may deduct 37
from the measure of tax amounts derived from charges for the refund 38
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value of qualifying beverage containers as required under chapter 1
70A.--- RCW (the new chapter created in section 30 of this act). To 2
qualify for this deduction, the taxpayer must separately itemize the 3
charges for the refund value on a receipt, invoice, or similar 4
billing document given to the purchaser. The amount of the deduction 5
claimed under this section for a reporting period may not exceed the 6
aggregate charges for the refund value of qualifying beverage 7
containers for beverages sold by the taxpayer during such a reporting 8
period. 9
Sec. 28. RCW 82.19.050 and 2005 c 289 s 1 are each amended to 10
read as follows: 11
The litter tax imposed in this chapter does not apply to:12
(1) The manufacture or sale of products for use and consumption 13
outside the state; 14
(2) The value of products or gross proceeds of the sales exempt 15
from tax under RCW 82.04.330; 16
(3) The sale of products for resale by a qualified grocery 17
distribution cooperative to customer-owners of the grocery 18
distribution cooperative. For the purposes of this section, 19
"qualified grocery distribution cooperative" and "customer-owner" 20
have the meanings given in RCW 82.04.298; 21
(4) The sale of food or beverages by retailers that are sold 22
solely for immediate consumption indoors at the seller's place of 23
business or at a deck or patio at the seller's place of business, or 24
indoors at an eating area that is contiguous to the seller's place of 25
business; or 26
(5)(a) The sale of prepared food or beverages by caterers where 27
the food or beverages are to be served for immediate consumption in 28
or on individual nonsingle use containers at premises occupied or 29
controlled by the customer. 30
(b) For the purposes of this subsection, the following 31
definitions apply: 32
(i) "Prepared food" has the same meaning as provided in RCW 33
82.08.0293. 34
(ii) "Nonsingle use container" means a receptacle for holding a 35
single individual's food or beverage that is designed to be used more 36
than once. Nonsingle use containers do not include pizza delivery 37
bags and similar insulated containers that do not directly contact 38
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the food. Nonsingle use containers do not include plastic or paper 1
plates or other containers that are disposable. 2
(iii) "Caterer" means a person contracted to prepare food where 3
the final cooking or serving occurs at a location selected by the 4
customer. 5
(6) The charge for the refund value of qualifying beverage 6
containers as required under chapter 70A.--- RCW (the new chapter 7
created in section 30 of this act), if the charge is separately 8
stated on a receipt, invoice, or similar billing document given to 9
the purchaser.10
NEW SECTION. Sec. 29. The provisions of RCW 82.32.805 and 11
82.32.808 do not apply to sections 27 and 28 of this act.12
NEW SECTION. Sec. 30. Sections 1 through 26 of this act 13
constitute a new chapter in Title 70A RCW.14
--- END ---
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