HB 250 — Tax credits, authorizes ADEM to issue tax credits to persons using certain recyclable materials, sale and trade of recycle tax credits, civil penalties for fraud.

HB250 INTRODUCEDENGROSSED HB250 1UMVZZ3-1TJHW951-2 By Representative Robbins RFD:

27-Feb-24 Page 0 1UMVZZ3-1HB250 02/27/2024Engrossed SLU2 (L)bm4 2024-892A 2BILL 4TO SYNOPSIS:BE ENTITLED AN ACT 9 Relating to recyclable materials;

Under existing law there is no provision for the issuance of credits for sale or transfer among persons who use recyclable materials to produce a product or an energy source and persons seeking to redeem credits in order to offset their solid waste disposal costs.

This bill would authorize the Alabama Department of Environmental Management to issue recycle credits to persons using recyclable materials diverted from the solid waste stream in order to produce a new product or an energy source and allow the credits to be sold and traded to persons seeking to offset the cost of solid waste disposal at public or private landfills in the state.

This bill would provide the department with the authority to establish rules and distribute funds collected from certain fees and penalties and to provide oversight of the program.

This bill would also establish a civil penalty for fraud related to the transfer of recycle credits and for falsifying recycle credit certificates.

A BILL TO BE ENTITLED Page 1 HB250 INTRODUCED AN ACT Relating to recyclable materials;

and to establishauthorize the department to impose civil penalties for violation of certain provisions of this act.

Page 1 HB250 Engrossed (5) RECYCLE CREDIT MARKET.

Page(b)(1) 2 HB250 INTRODUCED (b) The department shall issue recycle credits following receipt of an application on a form established by the department evidencing that an applicant used at least one ton of recyclable materials to create a new product or an energy source.

(2) The department may charge a fee for issuing a recycle credit payable by the person to whom the recycle credit is issued.

(3) The owner of a recycle credit may transfer a recycle credit on the recycle credit market,market. or use the recycle credit as payment to an operator of a public or private solid waste disposal facility located in the state to offset its solid waste disposal fees.

Page 2 HB250 Engrossed (e)(1) The department shall adopt rules and administer all recycle credit transactions.

(3) A transfer of a recycle credit is not valid unless, within 30 days following the transaction, the transferee has Page 3 HB250 INTRODUCED registered the transaction with the department by filing a registration form accompanied by a registration fee.

The department may impose a civil penalty notin toaccordance exceedwith onethe thousandAlabama dollarsEnvironmental ($1,000)Management forAct. each violation of this subsection.

(g) The department shall transfer all funds collected 95 from registration fees and civil penalties under this section each month as follows:

(1) Forty percent shall be paid to the Solid Waste Program.

(2) Forty percent shall be paid to the Recycle Credits Program.

(3) Twenty percent shall be paid to the Recycling Fund.

Page 43 HB250 Engrossed House of Representatives Read for the first time and referred ................27-Feb-24 to the House of Representatives committee on Economic Development and Tourism Read for the second time and placed ................04-Apr-24 on the calendar:

amendment Read for the third time and passed ................23-Apr-24 as amended Yeas 101 Nays 1 Abstains 0 John Treadwell Clerk Page 4