BILL AS INTRODUCED H.142
2021 Page 1 of 26
1 H.142
2 Introduced by Representative Sheldon of Middlebury
3 Referred to Committee on
4 Date:
5 Subject: Conservation and development; extended producer responsibility;
6 packaging; paper products
7 Statement of purpose of bill as introduced: This bill proposes to require parties
8 responsible for the production or distribution of packaging and paper products
9 to implement or participate in a plan for the collection and management of
10 recyclable packaging and paper products.
11 An act relating to extended producer responsibility for packaging and paper
12 products
13 It is hereby enacted by the General Assembly of the State of Vermont:
14 Sec. 1. 10 V.S.A. chapter 164B is added to read:
15 CHAPTER 164B. EXTENDED PRODUCER RESPONSIBILITY
16 PROGRAM FOR PACKAGING AND PAPER PRODUCTS
17 § 7181. DEFINITIONS
18 As used in this chapter:
19 (1) “Agency” means the Agency of Natural Resources.
VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 2 of 26
1 (2) “Covered entity” means any person who presents for collection any
2 amount of covered materials to a stewardship organization implementing an
3 approved producer responsibility plan.
4 (3)(A) “Covered materials” means:
5 (i) packaging; and
6 (ii) printed material.
7 (B) “Covered material” does not mean packaging or paper products
8 that:
9 (i) could become unsafe or unsanitary to recycle by virtue of the
10 anticipated use of the material or design of the material;
11 (ii) has the effect of disrupting recycling processes; or
12 (iii) includes labels, inks, or adhesives containing heavy metals or
13 other hazardous materials that would contaminate the recycling process, as
14 defined or specified by the Secretary.
15 (4)(A) “Packaging” means any containers or materials used for the
16 containment, protection, handling, delivery, and presentation of goods.
17 (B) The term “packaging” includes:
18 (i) packaging intended for the consumer market;
19 (ii) service packaging designed and intended to be used or filled at
20 the point of sale, such as carry-out bags, bulk good bags, take-out bags, and
21 home delivery food service packaging;
VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 3 of 26
1 (iii) secondary packaging used to group products for multiunit
2 sale;
3 (iv) tertiary packaging used for transportation or distribution
4 directly to a consumer; and
5 (v) ancillary elements hung or attached to a product and
6 performing a packaging or product display function.
7 (C) The term “packaging” does not include containers or materials:
8 (i)(I) used for the long-term protection or storage of a product; and
9 (II) with a life of not less than five years; or
10 (ii) a beverage container subject to regulation under chapter 53 of
11 this title.
12 (5)(A) “Paper product” means paper that is not packaging that is printed
13 with text or graphics or intended to be printed with text or graphics as a
14 medium for communicating information. “Paper product” includes:
15 (i) newsprint and inserts;
16 (ii) magazines and catalogs;
17 (iii) paper used for copying, writing, or other general use;
18 (iv) telephone directories;
19 (v) flyers;
20 (vi) brochures; and
21 (vii) booklets.
VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 4 of 26
1 (B) “Printed material” does not include a bound book.
2 (6) “Plan” means a plan described in section 7184 of this title that
3 describes the manner in which an extended producer responsibility program
4 will be implemented and financed.
5 (7) “Post-consumer recycled content” means the content of a covered
6 material made of feed stock derived from post-consumer recycled materials.
7 (8) “Program” means a program plan implemented by a manufacturer
8 or stewardship organization.
9 (9) “Program year” means the period from July 1 through June 30.
10 (10) “Recyclable” means covered materials that can be sorted by entities
11 processing recyclables in Vermont and for which during the previous two
12 calendar years, there was a consistent market for the reclaimed or processed
13 material to be used in the production of materials or products.
14 (11) “Recycle” means the process of reclaiming or processing covered
15 materials to produce new materials or products.
16 (12) “Recycling rate” means the percentage of discarded covered
17 materials that are reused and recycled from the total amount of discarded
18 material, disposed, reused, or recycled.
19 (13) “Responsible party” means
20 (A) For packaging:
VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 5 of 26
1 (i) a person who manufactures under the manufacturer’s own
2 brand a consumer product that uses or is composed of packaging and the
3 consumer product is sold, offered for sale, or distributed in the State;
4 (ii) if subdivision (A)(i) of this subdivision (13) does not apply, a
5 person who is the owner or licensee of a trademark under which packaging is
6 used in a commercial enterprise, sold, offered for sale, or distributed in the
7 State, whether or not the trademark is registered; or
8 (iii) if subdivisions (A)(i) and (ii) of this subdivision (13) do not
9 apply, a person who imports packaging into the State for use in a commercial
10 enterprise, sale, offer for sale, or distribution in the State.
11 (B) For paper products:
12 (i) a person who manufactures paper products under the
13 manufacturer’s own brand and the paper product is sold, offered for sale, or
14 distributed in the State;
15 (ii) if subdivision (B)(i) of this subdivision (13) does not apply, a
16 person who is the owner or licensee of a trademark under which a paper
17 product is used in a commercial enterprise, sold, offered for sale, or distributed
18 in the State, whether or not the trademark is registered; or
19 (iii) if subdivisions (B)(i) and (ii) of this subdivision (13) do not
20 apply, a person who imports a paper product into the State for sale, offer for
21 sale, or distribution in the State.
VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 6 of 26
1 (14) “Reusable” means, with respect to covered materials, that the
2 covered material is:
3 (A) technically feasible to reuse for its original purpose by the
4 consumer, is capable of being refilled with materials available to the consumer,
5 or is collected and refilled by the producer; and
6 (B) is reusable or refillable for such number of cycles, but not less
7 than 100 cycles, as the Secretary determines to be appropriate for the covered
8 material.
9 (15) “Secretary” means the Secretary of Natural Resources.
10 (16) “Sell” or “sale” means any transfer for consideration of title or of
11 the right to use, by lease or sales contract, covered materials, including transfer
12 of covered materials into the State through sales catalogues, the telephone, or
13 the Internet. “Sell” or “sale” does not include the sale, resale, lease, or transfer
14 of used covered materials or a manufacturer’s wholesale transaction with a
15 distributor or a retailer.
16 (17) “Stewardship organization” means an organization, association, or
17 entity that assumes the responsibilities, obligations, and liabilities under this
18 chapter of multiple responsible parties of covered materials.
19 § 7182. SALE OR DISTRIBUTION OF COVERED MATERIALS;
20 EXCEPTIONS
VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 7 of 26
1 (a) Prohibition. Beginning on July 1, 2023, a responsible party shall not
2 sell, offer for sale, distribute, or deliver to a consumer or retail establishment
3 for subsequent sale covered material unless all the following have been met:
4 (1) The responsible party is registered with the Secretary of Natural
5 Resources.
6 (2) The responsible party is participating in a stewardship organization
7 implementing an approved program plan.
8 (3) The name of the responsible party, the responsible party’s brand, and
9 the name of the responsible party’s covered materials are submitted to the
10 Agency of Natural Resources and listed on the stewardship organization’s
11 website as covered by an approved program plan.
12 (4) The stewardship organization in which the responsible party
13 participates has submitted an annual report as required under section 7184 of
14 this title.
15 (5) The stewardship organization in which the responsible party
16 participates has conducted a plan audit as required under section 7184 of this
17 title.
18 (b) De minimis exception. A responsible party is exempt from the
19 requirements of this chapter if the responsible party:
20 (1) produces, sells, offers for sale, or distributes less than one ton of
21 covered material per year in the State; or VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 8 of 26
1 (2) has a gross annual revenue of less than $1,000,000.00.
2 § 7183. STEWARDSHIP ORGANIZATION; REGISTRATION
3 (a) Participation in a stewardship organization. A responsible party shall
4 satisfy the requirements of this chapter by participating in a stewardship
5 organization implementing an approved program plan.
6 (b) Qualifications for a stewardship organization. To qualify as a
7 stewardship organization under this chapter, an organization, association, or
8 entity shall:
9 (1) commit to assume the responsibilities, obligations, and liabilities of
10 all responsible parties participating in the stewardship organization;
11 (2) not create unreasonable barriers for participation in the stewardship
12 organization;
13 (3) maintain a public website that lists all responsible parties and brands
14 and products covered by the stewardship organization’s approved program
15 plan; and
16 (4) coordinate with all other stewardship organizations to submit one
17 stewardship plan.
18 (c) Stewardship organization registration requirements.
19 (1) Beginning on July 1, 2022 and annually thereafter, a stewardship
20 organization shall file a registration form with the Secretary. The Secretary VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 9 of 26
1 shall provide the registration form to a stewardship organization. The
2 registration form shall include:
3 (A) a list of the responsible parties participating in the stewardship
4 organization;
5 (B) a list of the brands of each responsible party participating in the
6 stewardship organization;
7 (C) a list of the covered materials of each responsible party
8 participating in the stewardship organization;
9 (D) the name, address, and contact information of a person
10 responsible for ensuring the stewardship organization and its member
11 responsible party’s compliance with this chapter;
12 (E) a description of how the stewardship organization meets the
13 requirements of subsection (b) of this section, including any reasonable
14 requirements for participation in the stewardship organization; and
15 (F) the name, address, and contact information of a person for a
16 nonmember of the stewardship organization to contact regarding how to
17 participate in the stewardship organization to satisfy the requirements of this
18 chapter.
19 (2) A renewal of a registration without changes may be accomplished
20 through notifying the Agency of Natural Resources on a form provided by the
21 Agency.
VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 10 of 26
1 (d) Multiple stewardship organizations; implementation. If multiple
2 stewardship organizations register under this chapter, the stewardship
3 organizations shall coordinate and submit to the Secretary one program plan.
4 The multiple stewardship organizations may form a third-party entity to
5 implement the requirements of the chapter for all member stewardship
6 organizations.
7 § 7184. PROGRAM PLANS; REPORT; AUDIT
8 (a) Producer responsibility program; plan required. Prior to January 1,
9 2023, a stewardship organization representing responsible parties shall submit
10 a producer responsibility program plan to the Secretary for review in the
11 manner prescribed by the Secretary.
12 (b) Term. A program plan shall have a term of five years, and the
13 stewardship organization shall review and update the program plan every five
14 years following approval of the original program plan. The Secretary may
15 require the plan to be reviewed or revised prior to the termination of a plan
16 term if:
17 (1) the Secretary has cause to believe that the minimum post-consumer
18 recycled content rates, minimum recycling rates, fair and equitable payment to
19 collectors and processors, or other program plan factors are not being met or
20 followed by the stewardship organization; or VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 11 of 26
1 (2) the Secretary determines a change in circumstances warrants
2 revision of the plan.
3 (c) Program plan; minimum requirements. Each program plan shall
4 include, at a minimum, all of the following:
5 (1) List of participants. The program plan shall list all the responsible
6 parties, brands, and covered materials covered by the plan.
7 (2) Free collection of covered materials.
8 (A) The program plan shall provide for free collection of recyclable
9 covered material from covered entities, including covered material collected
10 through curbside collection services, at recycling centers and transfer stations,
11 or at public spaces.
12 (B) A stewardship organization shall accept all recyclable covered
13 material collected from a covered entity and shall not refuse the collection of
14 covered material based on the brand or responsible party for the covered
15 material.
16 (C) The program plan shall provide for the payment to collectors,
17 including curbside collection and recycling center and transfer station
18 collection, and material recovery facilities at a rate that covers the cost of
19 collection, transportation, processing, and marketing of recyclable covered
20 material. Costs include administration, facility and equipment, maintenance,
21 fuel, and labor. The program plan shall summarize how the stewardship VT LEG #352872 v.1
 BILL AS INTRODUCED H.142
2021 Page 12 of 26
1 organization shall fulfill responsibility for costs, including the rates to be paid
2 under the plan to collectors as determined by the advisory council.
3 (D) The program plan shall include funding for infrastructure and
4 market development, including criteria for infrastructure investment.
5 (3) Convenient standard. The program plan shall:
6 (A) comply with State law for the collection of covered materials,
7 including existing requirements for the collection of mandated recyclables
8 under chapter 159 of this title;
9 (B) allow all public and privately owned collection locations to opt to
10 be a collection facility for covered materials;
11