This bill enacts the "Tennessee Waste to Jobs Act," which seeks to develop and implement a comprehensive approach to addressing packaging waste in this state by (i) creating jobs and providing a sustainable funding mechanism for the operation of local recycling systems, enabling investment in recycling infrastructure; (ii) diverting recyclable packaging waste from rapidly filling landfills in this state; (iii) recovering valuable materials that would otherwise be lost to landfills, litter, and incineration, while developing markets for these materials and supporting businesses building a circular economy in this state; and (iv) engaging producers of packaging in the innovative reduction and reuse of packaging materials. PRODUCER RESPONSIBILITY PROGRAM ADVISORY BOARD This bill requires the commissioner of environment and conservation ("commissioner") to appoint a producer responsibility program advisory board ("board") to be administratively attached to the department of environment and conservation ("department"). However, the department may select an impartial, third-party facilitator to convene and provide administrative support to the board. Membership This bill provides that the membership of the board (i) must not include registered lobbyists; (ii) must represent all geographic regions of this state, including urban and rural counties and municipalities; and (iii) consist of the following 20 members:  Three voting members representing local governments in this state; One voting member representing materials recovery facilities; One voting member representing covered service providers; One voting member representing environmental nonprofit organizations; One voting member representing community-based nonprofit organizations working in the area of solid waste; One voting member representing a trade association or chamber of commerce, or other business advocacy organization representing businesses that are headquartered in this state; One voting member representing glass packaging material suppliers that is not a producer; One voting member representing plastics packaging material suppliers that is not a producer; One voting member representing fiber packaging material suppliers that is not a producer; One voting member representing metals packaging material suppliers that is not a producer; One voting member who has experience representing underserved communities; One voting member representing a solid waste landfill or transfer station operating an onsite, public-facing recycling collection program; One voting member representing durable goods manufacturing that is not a producer; One voting member representing retail and food services that is not a producer; One voting member representing an entity that develops or offers for sale covered materials that are designed for reuse and maintained through a reuse system or infrastructure or a statewide or national trade association that represents such entities; One voting member representing an entity that develops or offers for sale covered materials that are designed for refill and maintained through a refill system or infrastructure or a statewide or national trade association that represents such entities; The commissioner, or the commissioner's designee, as a nonvoting member; and One nonvoting member representing a producer responsibility organization ("PRO"). Meetings – Records This bill requires initial appointments to be staggered. Thereafter, the terms for appointed members are four years. After all initial appointments are made, but no later than July 15, 2026, the commissioner, or the impartial third-party facilitator, must call the first meeting. At the first meeting, and at the first meeting of each year ending in an even number thereafter, the board must elect from among its appointed members a chair, vice chair, and any other officers deemed necessary. After the first meeting of the board, the board must meet at the call of the chair and not less than two times per year. If an appointed member is absent from more than two consecutive meetings without good cause, then this bill provides that a vacancy is created. Meetings must comply with the open meeting requirements of this state's law. Additionally, all records of the board are public records for purposes of the public records law. This bill requires all reimbursement for travel expenses to be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general. All members of the board serve without compensation but are eligible for reimbursement of necessary traveling and other appropriate expenses while engaged in the work of the board. This bill requires the board to (i) advise each PRO throughout the needs assessment process, as described in this bill, and review the needs assessment; (ii) advise the PRO on the development of producer responsibility plan proposals, (iii) review the producer responsibility plan proposal submitted to the department, and recommend that the department approve or reject the proposal; (iv) review an individual producer responsibility program plan proposal submitted to the department, and recommend that the department approve or reject the proposal; and (v) review the annual reports required by this bill and recommend to the PRO and the department any program amendments that are needed. REQUIREMENTS OF THE DEPARTMENT This bill requires the department to review applications from prospective PROs. If applications from more than one PRO are submitted, then the department must determine which proposed PRO can most effectively implement this bill. The department may permit and approve additional PRO applicants if they provide unique ability to manage a defined subgroup of covered materials. When determining whether to approve a PRO, the department must consider whether the PRO (i) has a governing board consisting of producers that represent a diversity of covered materials introduced; and (ii) demonstrates adequate financial responsibility and financial controls to ensure proper management of funds. This bill requires the department to consult with the PRO and the board in the development of the producer responsibility plan proposal; approve or reject a producer responsibility plan proposal; approve or reject an individual producer responsibility plan proposal submitted to the department under this bill; review the annual reports required by this bill; administer, review, oversee, and enforce the producer responsibility plan; and review and annually update minimum recyclable and compostable materials lists that consider the availability of recycling composting services for each material, taking into consideration the impact of innovative collection and sorting technology on the creation of viable end markets; and, beginning July 1, 2029, and annually thereafter, provide written notice to the PRO of the department's estimates of the cost required to perform the department's duties. ESTIMATED COST By August 1, 2026, and each August 1 thereafter through August 1, 2029, this bill requires the department to provide written notice to each PRO of the estimated cost to the department in performing its duties under this bill. COMMISSIONER'S REQUIREMENTS By October 15, 2031, and every two years thereafter, this bill requires the commissioner to submit a report to the governor, to the chairman and ranking minority member of the senate energy, agriculture and natural resources committee, and the chairman and ranking minority member of the committee of house of representatives with subject matter jurisdiction over solid waste. PRODUCER RESPONSIBILITY ORGANIZATION By July 1, 2026, this bill requires a producer to establish a nonprofit organization to implement a producer responsibility plan ("PRO"). By July 1, 2026, the governing body of the PRO must apply for approval to the department describing how the PRO meets the requirements to be an approved PRO by submitting certain information described in the bill. Timeline of Actions Required This bill requires the following actions to be taken by the following deadlines:  By January 1, 2027, a producer must be a member of a PRO approved in this state. By July 1, 2027, a PRO must submit the results of a preliminary needs assessment to the department and the board. By July 1, 2028, a PRO must submit the results of the initial needs assessment to the department and the board. By July 1, 2029, a PRO must submit an initial producer responsibility plan proposal to the department and the board. When approved by the department, the PRO must begin implementation of the producer responsibility plan within six months of approval. NEEDS ASSESSMENT This bill requires the PRO to (i) facilitate at least one needs assessment every five years conducted by an independent third party approved by the department using a consultation process to obtain recommendations from the board, local governments, service providers, PROs, and other interested parties regarding the type and scope of information that should be collected and analyzed in the needs assessment; (ii) engage with local governments to increase participation under this bill; (iii) consult with the board and the department in the development of the producer responsibility plan proposal; (iv) submit a producer responsibility plan proposal that covers a period of five years to the department and the board; and (v) operate and administer the department-approved producer responsibility plan as the producer responsibility program. A producer responsibility plan expires five years from the date that the department approves the plan, unless the plan is renegotiated, renewed, or amended and approved by the department. Specific Information Required This bill requires the needs assessments to include specific information, including, but not limited to, the processing capacity of existing infrastructure, the additional infrastructure needed to meet or exceed the recycling, reuse, and composting levels set by the producer responsibility plan proposal, and opportunities for the use of innovative new technologies for sorting and collection to improve that capacity; an assessment of the level and causes of contamination of source-separated recyclable materials, source-separated compostable materials, and collected reusables, and the impacts of contamination on service providers; and an evaluation of the opportunities and costs of various service methods to increase reuse, composting, and recycling rates overall. This bill requires the producer responsibility plan proposal to include specific information, including how the PRO will track compliance amongst producers and will bring producers into compliance; a financing mechanism based on PRO dues, how the program will reimburse service providers under an approved producer responsibility plan; describe how the plan will provide or facilitate the deployment of innovative recycling and reuse systems within a recycling center or materials recovery facility that utilizes innovative technology to improve the identification and sorting of covered materials, where feasible; describe how the plan will utilize innovative technologies to improve data collection of covered materials collected and processed and the disposition of such materials throughout the materials recovery facility or recycling center; and how local governments may begin operating under an existing producer responsibility plan. PRODUCER DUES AUTHORIZED This bill authorizes a PRO to charge each member producer dues according to each producer's unit-, weight-, volume-, or sales-based market share, or by another method the PRO determines to be an equitable determination of each producer's payment obligation, so that the aggregate dues charged to member producers is sufficient to pay the commissioner's estimated costs in full. FINANCING METHODOLOGY – REIMBURSEMENT RATES In implementing the approved producer responsibility plan, this bill requires the PRO to use a financing method that provides a methodology for reimbursement rates for covered services for covered materials, exclusive of exempt materials. The methodology for reimbursement rates must consider estimated revenue received by service providers from the sale of covered materials based upon relevant material indices and incorporate relevant cost information identified by the needs assessment. Reimbursement rates must be annually updated and reflect the net costs for covered services for covered materials from covered entities, at a minimum. As used in this bill "covered services" means the services provided for the recovery, recycling, reuse, or composting of covered materials by local governments and other providers, including the collection, transportation, and processing of covered materials from the consumer to the end market, curbside services, and drop-off centers. This bill requires reimbursement rates to be established equivalent to net costs as established by a methodology in an approved plan. The financing method must also (i) calculate reimbursement rates per ton, by household, or by another appropriate unit of measurement and (ii) provide a formula for reimbursement rates for recycling, composting, or reuse services for covered materials. Reimbursement rates must be established equivalent to net costs pursuant to the methodology for reasonable covered services costs; and base reimbursement rates on certain costs described in the bill. DISPUTE RESOLUTION PROCESS This bill requires a PRO to describe a dispute resolution process utilizing third-party mediators for disputes related to reimbursements. PERFORMANCE GOALS This bill requires a PRO to establish performance goals for each covered material type at five-, 10-, and 15-year rolling intervals and demonstrate continual improvement in reducing environmental impacts and human health impacts of covered materials over time. The performance goals must be informed by PRO experience and knowledge and include postconsumer recycled content goals, recyclability and recycling rate goals, reuse goals, packaging reduction goals, composting goals, contamination reduction rate goals, and any other goals required by the board or the department. The PRO must review existing rates and dates for performance goals from other programs to use in establishing a minimum that aims to exceed the national average. ALTERNATIVE SYSTEMS This bill clarifies that it does not prohibit a PRO from establishing alternative systems as a strategy for increasing the capture and reuse or recycling of covered materials. ANNUAL REPORT This bill requires the PRO to annually report to the department and the board on the progress toward meeting producer responsibility plan requirements and goals for the immediately preceding year. WEBSITE This bill requires the PRO to maintain a website that uses best practices for accessibility and contains at a minimum contact information for the PRO, PRO reports, needs assessments, educational materials, and any other information required by the department. REGISTRATION WITH THE COMMISSIONER By January 1, 2026, and annually thereafter, this bill requires a service provider seeking reimbursement for services provided under an approved producer responsibility plan to register with the commissioner by submitting (i) the contact information for a person representing the service provider; (ii) the address of the service provider; and (iii) if applicable to services provided, a report of the total amount billed for collection for covered entities, processing services, and transfer station operations provided during the preceding calendar year and, when possible, values must be separated for collection, transfer, and processing. The reimbursements provided to service providers under an approved producer responsibility plan must only be provided to service providers that meet the performance standards established under an approved producer responsibility plan. INDIVIDUAL PRODUCER RESPONSIBILITY PROGRAM PLAN PROPOSAL As an alternative method for participating in the producer responsibility program, this bill authorizes a producer to submit to the board and the department an individual producer responsibility program plan proposal if they provide a unique ability to manage a defined subgroup of covered materials, and if the producer notifies the department of its intent to submit an individual plan no later than July 1, 2028, and by July 1 of each subsequent year. The producer must report annually in compliance with the requirements of this bill. The board must review an individual producer responsibility program plan proposal submitted under this bill and make a recommendation concerning approval of the proposal to the department. SALES AND DISTRIBUTIONS On or after January 1, 2030, if the department has approved a producer responsibility plan, then this bill prohibits a producer from selling or distributing any products packaged in covered materials in this state unless the producer is participating in the PRO producer responsibility plan or an individual producer responsibility plan. A person that is not a PRO or a producer that violates this part is liable for a civil penalty not to exceed $25,000 per day of violation. A PRO or a producer that violates this part or the requirements of a stewardship plan approved by the commissioner is liable for a civil penalty in the following amount:  For a first violation, a civil penalty not to exceed $25,000 per day of violation. For a second violation, a civil penalty not to exceed $50,000 per day of violation. For a third or subsequent violation, a civil penalty not to exceed $100,000 per day of violation. This bill authorizes the department to rescind approval for a PRO producer responsibility plan or individual producer responsibility program plan at any time for good cause. If the department rescinds a plan, the PRO or individual producer may amend and resubmit the plan for approval. If, based upon the annual report, goals have not been met, the department may require the PRO to amend the producer responsibility plan or a producer to amend its individual producer responsibility program plan. This bill provides that a producer who claims that package materials are not covered materials must report the type, quantity, and disposition of the materials to the department annually. A service provider must provide its PRO with data necessary to complete the needs assessment and reports required by this part upon request of the PRO. CERTAIN ANTICOMPETITIVE CONDUCT AUTHORIZED This bill authorizes a PRO that arranges collection, recycling, composting, waste reduction, or reuse services under this bill to engage in anticompetitive conduct to the extent necessary to plan and implement collection, recycling, composting, waste reduction, or reuse systems to meet the obligations under this bill and is immune from liability under state laws relating to antitrust, restraint of trade, and unfair trade practices. AUTHORITY OF LOCAL GOVERNMENTS This bill generally does not require a local government to agree to operate under a producer responsibility plan, nor does it restrict the authority of a local government to provide waste management services to residents or to contract with any entity to provide waste management services. A local government that is also a service provider is eligible to be registered with the commissioner and reimbursed at the rates and schedule established in accordance with an approved producer re