HB 6917 — AN ACT CONCERNING THE MANAGEMENT OF SOLID WASTE IN THE STATE.

Such report shall include, but need not be limited to,sHB6917 (1)/ anFile assessment of the costs to residents of the state and municipalities for the handling, hauling, disposal and recycling of consumer packaging, (2)theapproximate percentageofthestate'stotalsolidwaste stream that such consumer packaging represents, (3) an analysis of the trends in the generation of such consumer packaging for the previous five-year periodandthe forthcoming five-year period,(4)anassessment of the potential costs and savings for residents of the state and municipalities that are associated with the handling, hauling, disposal and recycling of such packaging pursuant to an extended producer LCO No.

4396884 53 ofsHB6917 6File Raised Bill No.

6917884 to, (1) an assessment of the costs to residents of the state and municipalities for the handling, hauling, disposal, composting and recycling of consumer packaging, (2) the approximate percentage of the state's total solid waste stream that such consumer packaging represents, (3) an analysis of the trends in the generation of such consumer packaging for the previous five-year period and the forthcoming five-year period, in addition to the projected trend of recycling and composting rates of consumer packaging in the forthcoming five-year period, (4) an assessment of the potential costs and savings for residents of the state and municipalities that are associated with the handling, hauling, disposal, composting and recycling of such packaging pursuant to an extended producer responsibility program, (5) a discussion of any post-consumer or secondary markets and attendant demand for the materials that compose the preponderance of such consumer packaging, (6) a review and assessment of any industry initiatives,to date, for thereductionand industry-sponsored collection of such consumer packaging, and (7) an evaluation of any regional efforts to establish extended responsibility cooperative agreements among neighboring states for consumer packaging.packaging, and (8) a review and assessment of existing recycling and composting access, infrastructure and capacity throughout the state.

Sec.

4.

Subsection (a) of section 16-244bb of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):

(a) There is established an account to be known as the sustainable materials management account which shall be a separate, nonlapsing account within the General Fund.

The account shall contain moneys collected by the alternative compliance payment for Class II renewable portfolio standards pursuant to subsection (h) of section 16-244c and subsection (k) of section 16-245 and moneys deposited pursuant to subsection [(f)] (g) of section 22a-232, as amended by this act.

The Commissioner of Energy and Environmental Protection shall expend moneys from the account for the purposes of the program established under this section, provided the commissioner may also pledge such sHB6917 / File No.

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884 moneys for revenue bonds the proceeds of which shall be used to support waste infrastructure projects described in this section.

Section 1 July 1, 2025 New22a-232 section Sec.

2 Octoberfrom 1,passage 202522a-244b(d) 22a-226e(d) and (e) Sec.

3 Julyfrom 1,passage 2025New 22a-232section Sec.

4 fromJuly passage1, 22a-244b(d)2025 Sec.16-244bb(a) Statement of Legislative Commissioners:

5Section from4 passagewas Newadded sectionfor Statementpurposes of Purpose:a conforming statutory change.

ToENV provideJoint fundingFavorable forSubst. enforcement concerning certain food waste diversion requirements, study the need and viability of extended producer responsibility programs for consumer packaging, provide for increased food waste diversion from certain entities, create source funding for food waste diversion infrastructure projects and authorize municipal and regional waste coordinators.

[ProposedC/R deletionsAPP areAPP enclosedJoint inFavorable brackets.Subst.

ProposedsHB6917 additions/ areFile indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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884 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 26 $ FY 27 $ Revenue Serv., Dept.

GF - Revenue 2.3 million 2.3 million Loss Department of Energy and Sustainable 3.2 million 3.2 million Environmental Protection Materials Management Account - Revenue Gain Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 26 $ FY 27 $ Various Municipalities Potential See Below See Below Cost Explanation The bill, which expands the solid waste assessment and the purposes for which municipalities may use the funds received from the state’s nips surcharge, results in the following fiscal impacts:

Section 1 expands the solid waste assessment and dedicates all revenue (rather than just the amount in excess of $2.8 million) to the sustainable materials management account.

This results in (1) a General Fund revenue loss of approximately $2.3 million, (2) a sustainable materials management account revenue gain of approximately $3.2 million annually, and (3) a potential cost to municipalities, all beginning in FY 26.

Section2 allowsmunicipalitiesto spendcertainfundsonamunicipal or regional waste coordinator which does not result in a fiscal impact as sHB6917 / File No.

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884 it only expands the possible use of funds municipalities already receive.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to solid waste volume.

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884 OLR Bill Analysis sHB 6917 AN ACT CONCERNING THE MANAGEMENT OF SOLID WASTE IN THE STATE.

SUMMARY This bill imposes a quarterly $1.50 per ton fee on solid waste processed by (1) waste conversion facilities, (2) transfer stations, and (3) volume reduction plants, with certain exceptions as described below.

Under current law, this fee applies only to resources recovery facilities, which are facilities that burn municipal solid waste to generate electricity.

The bill requires the owners of these facilities to pay the fee to the Department of Revenue Services (DRS) commissioner starting on October 1, 2025, generally subject to the same payment and administrative requirements as current law applies to resources recovery facilities.

The bill directs all the solid waste fees the state collects from these facilities, including those from resources recovery facilities, to the existing sustainable materials management account (see BACKGROUND).

Under current law, $2.8 million of the fees go to the General Fund and the remainder go to this account.

The bill also expands the purposes for which municipalities may use the funds received from the state’s nips surcharge to explicitly include hiring a municipal or regional waste coordinator.

Existing law already allows them to use this revenue to hire a recycling coordinator, among other things.

Finally, the bill requires the Department of Energy and Environmental Protection (DEEP), by January 15, 2027, to submit a report to the Environment Committee on the viability and need for a consumer packaging extended producer responsibility program.

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884 EFFECTIVE DATE:

Upon passage, except that the solid waste fee provisions take effect July 1, 2025.

SOLID WASTE FEE Applicable Facilities Under the bill, the solid waste fee generally applies to the following:

1.

waste conversion facilities (i.e.

facilities that convert solid waste into electricity, fuel, gas, or other products through thermal, chemical, or biological processes, but not facilities that combust mixed municipal waste to generate electricity);

2.

transfer stations (i.e.

any location or structure, on land or water, where more than 10 cubic yards of solid waste generated elsewhere may be stored for transfer or transferred between containers for movement to another location, whether or not this waste is stored at the location prior to transfer);

and 3.

volume reduction plants (i.e.

any location or structure, on land or water, used to reduce solid waste at a rate of more than 2,000 pounds per hour, including resources recovery facilities, waste conversion facilities and other incinerators, recycling facilities, pulverizers, compactors, shredders, balers and composting facilities).

It does not apply to:

1.

municipally owned transfer stations or volume reduction plants;

2.

volume reduction plants that are a resources recovery, waste conversion, or recycling facility;

and 3.

solid waste that is recycled or transferred to any resources recovery facility.

Fee Payment and Administration As under current law for resources recovery facilities, the applicable facilities must submit a quarterly return to the DRS commissioner along sHB6917 / File No.

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884 with the required payment.

They must file these returns on a DRS- prescribed form by the last day of the month immediately following the end of each calendar quarter.

Unpaid fees are subject to (1) a penalty of 10% of the amount due or $50, whichever is greater, and (2) interest at the rate of 1% per month or partial month until they are paid.

Liability for Paying the Fee By law, any person or municipality liable for paying to have waste disposed of at a resources recovery facility subject to the solid waste fee mustreimbursethefacilityownerforanyassessmentattributabletothat person’s or municipality’s waste.

The assessment is a debt of the person or municipality paying to dispose of the waste.

The bill extends this requirement to people or municipalities paying to have waste disposed at waste conversion facilities, but not transfer stations or volume reduction plants.

Fee Collection and Enforcement By law, unchanged by the bill, certain tax collection and enforcement provisions that apply to the admissions and dues tax under existing law also apply to the solid waste fee.

Under these provisions, the DRS commissioner can (1) impose a deficiency assessment and penalty;

(2) require the facilities to keep certain records and examine all of their records;

(3) administer oaths, subpoena witnesses, and receive testimony;

and (4) collect the fee and any penalties using certain methods (e.g., tax warrants and liens).

The facilities can request a hearing on the amount of fees they are required to pay, and appeal the hearing decision if aggrieved.

Lastly, an additional penalty may be imposed on facilities and retailers for willful violations or filing fraudulent returns.

CONSUMER PACKAGING EXTENDED PRODUCER RESPONSIBILITY PROGRAM REPORT Under the bill, DEEP’s report must:

1.

assess thecosts to state residentsandmunicipalitiesfor handling, hauling, disposing, composting, and recycling consumer sHB6917 / File No.

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884 packaging;

2.

indicate the approximate percentage of the state’s total solid waste stream made up of consumer packaging;

3.

analyze (a) trends in generating consumer packaging for the past and upcoming five-year period and (b) the projected trend of consumer packaging recycling and composting rates in the upcoming five-year period;

4.

assess the potential costs and savings for state residents and municipalities associated with an extended producer responsibility program for consumer packaging handling, hauling, disposal, composting, and recycling;

5.

discuss any post-consumer or secondary markets and the demand for these consumer packaging;

6.

review and assess any industry initiatives, to date, for the reduction and industry-sponsored collection of consumer packaging;

7.

evaluate any regional efforts to establish extended responsibility cooperative agreements among neighboring states for consumer packaging;

and 8.

review and assess existing recycling and composting access, infrastructure, and capacity throughout the state.

BACKGROUND Nip Surcharge The law imposes a five-cent surcharge on each nip sale in Connecticut.

A “nip” is a beverage container containing 50mL or less of a spirit or liquor.

Wholesalers must remit the surcharge to the municipality where thesaleoccurred,andmunicipalitiesmust use these funds for environmental efforts to reduce the amount of solid waste generated in the municipality or the impact of litter (CGS § 22a-244b).

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884 Sustainable Materials Management Account The sustainable materials management account is a dedicated accountthatreceivesfundingfromthesolidwasteassessmentdescribed above as well as certain compliance payments related to the state’s renewable portfolio standard.

Funds from the account must be used (1) for a sustainable materials management program to reduce solid waste in the state and (2) to back revenue bonds used to support related waste infrastructure projects.

COMMITTEE ACTION Environment Committee Joint Favorable Substitute Change of Reference - APP Yea 24 Nay 11 (02/28/2025) Appropriations Committee Joint Favorable Substitute Yea 38 Nay 15 (04/24/2025) sHB6917 / File No.

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