HB 1607 — Concerning recycling and waste reduction.

(26)(24) "Responsible"Service endprovider" market" means an entity that:that provides recycling collection or recycling processing services for covered beverage containers.

(a) First produces and sells, transfers, or uses recycled content feedstock that meets the quality standards necessary to be used in the creation of new or reconstituted products;

(b) Complies with all applicable federal, state, and local statutes, rules, ordinances, and other laws governing environmental, health, safety, and financial responsibility;

(c) If the market operates in the state, manages waste according to the state's solid waste management hierarchy established in RCW 70A.205.005;

and (d) Meets the minimum operational standards adopted under a producer responsibility organization plan to protect the environment, public health, worker health and safety, and minimize adverse impacts to socially vulnerable populations.

(27) "Retail establishment" means any person, corporation, partnership, business, dealer, facility, vendor, organization, or individual that sells or provides merchandise, goods, or materials directly to a consumer that engages in the sale of beverages that are covered beverage containers intended for consumption off-site.

(28) "Reuse" means the redemption and return of a covered beverage container to the marketplace where the continued use of the covered beverage container is:

(a) Intentionally designed and marketed to be used multiple times for its original intended purpose without a change in form;

p.

5 SHB 1607 (b) Designed for durability and maintenance to extend its useful life and reduce demand for new production of the covered beverage container;

(c) Supported by adequate logistics and infrastructure at a retail location, by a service provider, or on behalf of or by a producer, that provides convenient access for consumers;

and (d) Compliant with all applicable federal, state, and local statutes, rules, ordinances, and other laws governing health and safety.

(29) "Reuse rate" means the share of units of a reusable covered beverage container introduced into the state in a calendar year that are demonstrated and deemed reusable in accordance with an approved plan.

(30) "Service provider" means an entity that provides recycling collection or recycling processing services for covered beverage containers.

(31)(25) "Socially vulnerable populations" means populations including, but not limited to, individuals with disabilities, individuals without vehicles, older adults, individuals with low incomes or experiencing homelessness, and individuals with limited English proficiency.

PRODUCER AND RECYCLING REFUND PRODUCER RESPONSIBILITY ORGANIZATION REGISTRATION.

(1) By March 1, 2026, each producer must appoint a recycling refund producer responsibility organization to address its covered materials.

(2) By May 1, 2026, and annually thereafter, a recycling refund producer responsibility organization must register with the department on behalf of its producers.

A registration submission by a recycling refund producer responsibility organization must include the following:

(a) Contact information for a person responsible for implementing an approved plan;

(b) A list of all member producers that have entered into written agreements to operate under an approved plan by the recycling refund producer responsibility organization, copies of the written agreements for each member producer and, except in the first year of registration, a list of all brands of each producer's covered materials introduced;

(c) A plan for recruiting additional member producers and executing written agreements confirming producers will operate under an approved plan administered by the recycling refund producer responsibility organization;

(d) A list of current board members and the executive director if different than the person responsible for implementing approved plans;

and p.

5 HB 1607 (e) Documentation demonstrating adequate financial responsibility and financial controls to ensure proper management of funds and payment of the annual registration fee to the department.

(3) By June 1, 2026, and each June 1st thereafter, recycling refund producer responsibility organizations must submit an annual registration fee to the department to fund all costs of the department to implement, administer, and enforce this chapter.

NEW SECTION.

Sec.

4.

(a) Beginning April 15,1, 2026, be a member of thea recycling refund producer responsibility organization registered in this state;

(b) Through thea recycling refund producer responsibility organization, implement and finance a statewide program for covered beverage containers that encourages waste reduction, recycling, refill, and reuse;

p.(2) Upon registration with a recycling refund producer responsibility organization under subsection (1)(a) of this section, the producer must provide the following to the recycling refund producer responsibility organization before the beverage brand is offered for sale, either physically or via e-commerce:

6 SHB 1607 (2) Upon registration with the recycling refund producer responsibility organization under subsection (1)(a) of this section, the producer must pay the required initial producer fees as determined by the recycling refund producer responsibility organization.

The required fees must be paid before the beverage brand is offered for sale, either physically or via e-commerce into Washington.

(3) A producer must provide the following to the recycling refund producer responsibility organization by the time any covered beverage container brand is offered for sale, either physically or via e- commerce, using a standardized method provided by the recycling refund producer responsibility organization:

(b) TheDetailed nameinformation offor the beveragebrand asfor identified through the userecycling ofrefund letters,producer words,responsibility ororganization, symbolsincluding: on the product label affixed to, or a part of, the covered beverage container;

(c)(i) The typename of beveragethe containedcovered beverage in the covered beverage container usingas anidentified appropriatethrough categorizationthe methoduse forof beveragesletters, aswords, determinedor bysymbols on the recyclingproduct refundlabel produceraffixed responsibilityto, organization;or a part of, the covered beverage container;

(d)(ii) The sizetype orof fluidbeverage volumecontained ofin the covered beverage container;container using an appropriate categorization method for beverages as determined by the recycling refund producer responsibility organization;

(e)p. The material type of the covered beverage container;

and6 (f)HB The1607 universal(iii) productThe codenumber orof Europeancovered articlebeverage numbercontainers associatedsold withor theoffered coveredfor beveragesale; container.

(iv) The volume of the beverage container;

(v) The material type of the container;

and (vi) The universal product code or European article number associated with the container.

p.NEW SECTION.

7 SHB 1607 NEW SECTION.

4.5.

TheA recycling refund producer responsibility organization must:

(1) ByBeginning March 1, 2026, register with the department;

(2) By AprilSeptember 1, 2026, establishsubmit ana initialone-time producerpayment feeto structurethe todepartment, fundin lieu of the initialregistration implementationfee required in section 3 of thethis program,act, toin bean usedamount untildetermined by the recyclingdepartment, refundto producercover responsibilitythe organizationcosts hasof anthe approveddepartment programunder planthis aschapter requiredfrom underthe sectioneffective 6date of this act,section andthrough collectimplementation feesof annuallythis fromsection; registered producers;

(3) ByEstablish Mayan 1,initial 2026,producer submitfee astructure one-time payment to fund the department,initial inimplementation lieu of the registrationprogram, feeto requiredbe inused sectionuntil 3 of this act, in an amount determined by the department,recycling torefund coverproducer theresponsibility previouslyorganization incurredhas costsan andapproved futureprogram estimatedplan costsas ofrequired the department under thissection chapter7 from the effective date of this sectionact, throughand implementationcollect offees thisannually section;from registered producers;

(4) By January 30, 2027, and every year thereafter, submit the following:

(5) By July 1, 2027, or six months after rule adoption, whichever is later, and every five years thereafter, submit a program plan that meets the requirements of this chapter to the department for approval;

(6) Once the recycling program plan is approved by the department under this section, implement a recycling refund program as described in its approved program plan by July 1, 2028, or six months after rule adoption, whichever is later;

(7) Maintain a registry of all types of covered beverage containers sold and redeemed in this state by all registered producers;

(8) Set and collect the annual producer fees based on the criteria set forth in this chapter;

(9) Accept the adequate refund value from retail establishments for covered beverage containers sold;

(10) Submit the annual reports required under section 20 of this act after the program has begun;

87 SHBHB 1607 (11)(5) EnsureBy thatJuly producers1, operating2027, underand aevery recyclingfive refundyears programthereafter, plansubmit administereda byplan thethat recyclingmeets refund producer responsibility organization comply with the requirements of thethis recyclingchapter refundto programthe consumerdepartment educationfor planapproval; and with this act;

(12)(6) ConsiderOnce andthe respondrecycling inprogram writingand toconsumer commentseducation receivedplan fromis approved by the department under section 5 of this act, implement a recycling refund advisoryprogram council;as described in its approved program plan by July 1, 2028;

(13)(7) Maintain a websiteregistry thatof includes:all types of covered beverage containers sold and redeemed in this state by all registered producers;

(8) Collect the annual producer fees;

(9) Accept the adequate refund value from producers for covered beverage containers to cover existing or projected refund liabilities associated with that brand, excluding units sold to an on-site consumption establishment;

(10) Submit a proposed list of covered beverage containers and material exemptions to the department as part of the recycling refund program and consumer education plan;

(11) Submit the annual reports required under section 21 of this act;

(12) Ensure that producers operating under a recycling refund program and consumer education plan administered by the recycling refund producer responsibility organization comply with the requirements of the recycling refund program consumer education plan and with this act;

(13) Consider and respond in writing to comments received from the recycling refund advisory council;

(14) Maintain a website that includes:

(14)(15) Notify the department within 30 days of a change made to the contact information for a person responsible for implementing the recycling refund producer program plan, to board membership, or to the executive director;

(15)(16) NotifyAssist theservice departmentproviders ifto fraudulentidentify redemptionand isuse identified;responsible end markets;

(16)(17) Ensure timely, negotiated, and fair compensation, maintenance, and operational costs to entities that are leasing space for redemption sites;

and (17)p. Comply with all other applicable requirements of this chapter.

8 HB 1607 (18) Comply with all other applicable requirements of this chapter.

5.6.

(a) By January 1, 2026, appoint the initial membership of the recycling refund advisory council, as required under section 78 of this act;

(b) Provide administrative and operating support to the recycling refund advisory council, as required under section 78 of this act;

(d) By March 15, 2026, accept the registration of thea recycling refund producer responsibility organization;

(e) By May 1, 2026, and every May 1st thereafter, determine a total annual registration fee to be paid by the recycling refund producer responsibility organization that is adequate to cover, but p.not exceed, the costs to implement, administer, and enforce this chapter in the preceding fiscal year;

9(f) SHBWithin 1607120 notdays exceed,of thereceipt, estimatedreview costsand toapprove, implement,deny, administer,or request additional information for the draft recycling refund program and enforceconsumer thiseducation chapterplan inrequired theunder precedingsection fiscal7 year;of this act, and:

(f) Within 120 days of receipt, review and approve, deny, or request additional information for the draft recycling refund program plan required under section 6 of this act, and:

(ii) If the department denies or requests additional information for a draft plan or amendment, the department must provide the recycling refund producer responsibility organization with the reasons, in writing, that the plan or amendment does not meet the plan requirements of section 67 of this act.

The department must review and approve or disapprovep. the revised draft plan or amendment no later than 60 days after the department receives it;

9 HB 1607 disapprove the revised draft plan or amendment no later than 60 days after the department receives it;

and (iv) Prior to approving the draft plan, the department must review the convenience standards and proposed network of redemption sites provided in the plan as required under section 1711 of this act using the following criteria:

and (C) AccessRedemption insites urbanmust areasnot isdisproportionately accessibleimpact andoverburdened convenientcommunities for individuals relying on public transit or nonmotorizedpopulations; forms of transportation;

(D) Reasonable opportunities are provided for individuals to receive immediate refunds for returns of covered beverage containers;

and p.

10 SHB 1607 (E) Redemption sites must not disproportionately impact overburdened communities or populations;

and (iii) Determine whether an annual report meets the requirements of this chapter, considering comments received under (f) of this subsection, and notify the recycling refund producer responsibility organization of the approval or reasons for denial.

and (iv) Notify a recycling refund producer responsibility organization if the annual report demonstrates that a plan fails to achieve the requirements under this chapter;

and (iii) The most recent lists of covered beverage containers developed by the recycling refund producer responsibility organizationp. and information about any material exclusions as described in section 9 of this act.

10 HB 1607 organization and information about any material exclusions as described in section 10 of this act.

6.7.

RECYCLING REFUND PROGRAM AND CONSUMER EDUCATION PLAN.

The recycling refund program and consumer education plan submitted to the department must contain the following:

(2) Proposed targets and deadlines for reuse and refill to be achieved;

(3) A description of how the recycling refund producer responsibility organization will meet performance targets for redemption, recycling, and reuse and refill as described in section 1718 of this act;

(5) How to facilitateachieve the objectives for the expansion of reuse and refill systems;

p.(7) How the proposed network of redemption sites meets the convenience standards and addresses the evaluation criteria in this act;

11 SHB 1607 (7) A description of the number and distribution of proposed express and full-service redemption sites to be provided by the program, along with an analysis demonstrating how the proposed network of redemption sites meets the convenience standards and addresses the evaluation criteria outlined in this chapter;

(9) How the program will conduct education and outreach and provide accessible redemption sites to socially vulnerable populations;

(11) What, if any, alternative access redemption options may be implemented or contracted redemption pick-up operators may be utilized to increase convenience;

and (b)p. In subsequent fee setting periods after the first fee setting period, consider incentivizing using materials and design attributes that reduce the environmental impacts and human health impacts of covered beverage containers.

11 HB 1607 (b) In subsequent fee setting periods after the first fee setting period, consider incentivizing using materials and design attributes that reduce the environmental impacts and human health impacts of covered beverage containers.

(a) The per-container refund value premium approved nonprofit organizations are eligible for under the program;

p.NEW SECTION.

12 SHB 1607 NEW SECTION.

7.8.

(g)p. One member representing an organization that represents vulnerable populations;

12 HB 1607 (g) One member representing an organization that represents vulnerable populations or an individual representing the office of equity under chapter 43.06D RCW;

and (l) One member representing the recycling processing sector;sector.

(m) One member who is a canner or represents a canner organization;

and (n) One member representing the small retail sector.

p.(a) Review the recycling refund program and consumer education plan and provide comments to the recycling refund producer responsibility organization and the department;

13 SHB 1607 (a) Review the recycling refund program plan and provide comments to the recycling refund producer responsibility organization and the department;

8.9.

(a) This exemption applies to all transactions involving remitting the refund value as it moves between producers, retail establishments, and other participants within the distribution chain, providedp. the amounts are designated as refunds under the recycling refund program.

13 HB 1607 provided the amounts are designated as refunds under the recycling refund program.

9.10.

TheA recycling refund producer responsibility organization is not required to pay refunds on:

(1) A covered beverage container visibly containing or contaminated by a substance other than water, or residue of the original contentscontents; or water;

p.(2) A covered beverage container that the recycling refund producer responsibility organization has reasonable grounds to believe was purchased in a state other than Washington;

14and SHB(3) 1607Any (2) A covered beverage container that theis recyclingcrushed, refundbroken, produceror responsibilitydamaged organizationto hasthe reasonableextent groundsthat tothe believebrand wasappearing purchasedon inthe abeverage statecontainer othercannot thanbe Washington;identified.

andThis (3)requirement Anydoes beveragenot containerapply thatto ismetal brokenand orplastic damagedcovered tobeverage thecontainers extentprocessed thatby thematerial brandrecovery appearingfacilities onbefore theextended beverageproducer containerresponsibility cannotis beimplemented. identified.

This requirement does not apply to metal and plastic covered beverage containers processed by material recovery facilities before extended producer responsibility for paper and packaging products is implemented.

10.11.

TheA recycling refund producer responsibility organization must propose a quantitative convenience standard that is based on a combination of time, distance, and other measurable factors for redemption of covered beverage containers in the recycling refund program plan that includes the following:

(2) Provides appropriately convenient and equitable access in urban, suburban, and rural areas, and which draws upon redemption modalities including, but not limited to, express redemption sites, full-service redemption sites, alternative access redemptionplans, sites, contracted redemption pick-up operators, and special collection events;

and (4) Incorporates a broad range of entities that may opt to serve as a redemption location including, but not limited to, municipal facilities,p. public spaces, nonprofit organizations, retailers, religious and charitable organizations, sporting events, and waste management facilities.

14 HB 1607 facilities, public spaces, nonprofit organizations, retailers, religious and charitable organizations, sporting events, and waste management facilities.

11.12.

(1) Each redemption site must collect all covered beverage containers subject to the recycling refund value except as excluded by section 910 of this act.

Any location serving as a redemption site shall be fairly compensated through a mutual agreement by the recycling refund producer responsibility organization for providing physical space for p.redemption and associated maintenance and operational costs of the redemption sites, for the duration of the approved program plan.

15(2) SHBA 1607recycling redemptionrefund andproducer associatedresponsibility maintenanceorganization andshall operationalprovide costsa ofsufficient thenumber and distribution of redemption sites,sites forto achieve the durationredemption ofrate theperformance approvedand programconvenience plan.requirements of this chapter.

(2)A The recycling refund producer responsibility organizationorganization's shallplan providesubmitted ato sufficientthe numberdepartment must provide an analysis and rationale supporting how the recycling refund producer responsibility organization's proposed distribution of redemption sites is designed to achievemeet the redemption rate performance and convenience requirements ofincluded in this chapter.

(3) GovernmentLocal entities,governments, nonprofit organizations, individuals, and private organizations are eligible to host redemption sites.

(4) TheA recycling refund producer responsibility organization may accept direct, sorted returns in commercial quantities at its processing facilities from full service redemption sites or express redemption sites.

12.13.

(1) TheA recycling refund producer responsibility organization must, at its own cost, provide expressconvenient redemptiondesignated sitesreturn points or avenues that allow consumers to return covered beverage containers.

These sites shall be known as express redemption sites and will not require cash handling on-site, rather upon return, containers couldwill be transported to centralized processing facilitiesfacilities, if needed, and refunds will be credited to the consumer's virtual accountaccount. once the covered beverage containers are counted.

If a bag-drop programprograms isare deployed, the recycling refund producer responsibility organization must credit the cost of any required bag purchase back to the consumer'sconsumer virtual account when the bag is returned and processed through the recycling refund system.

(2) Express redemption sites must be located a convenient distance from a retail establishment, located at a publicly owned facility, located at a privately owned facility, or are at a location otherwise convenient for consumers.

Express redemption sites may be located in the parking lot of a retail establishment, parking lot of a privately owned facility, parking lot of a publicly owned facility, public right-of-way, or any other location convenient to consumers.

(3) Storage and drop-off containers sited for the purpose of fulfilling the requirements of this section are considered temporary mobile containers regardless of whether they have wheels, have electrical power, or are affixed to the site.

(4) If the standard bags for the bag-drop program are made of plastic film, the recycling refund producer responsibility organization must:

1615 SHBHB 1607 (a)(2) EnsureDesignated thatreturn thepoints standardmust bagsbe havelocated a minimumconvenient ofdistance 50from percenta postconsumerretail recycledestablishment, content;located at a publicly owned facility, located at a privately owned facility, or are at a location otherwise convenient for consumers.

Express drop-off redemption sites may be located in the parking lot of a retail establishment, parking lot of a privately owned facility, parking lot of a publicly owned facility, public right-of-way, or any other location convenient to consumers.

(3) Storage and drop-off containers sited for the purpose of fulfilling the requirements of this section are considered temporary mobile containers regardless of whether they have wheels, have electrical power, or are affixed to the site.

(4) If the standard bags for the bag-drop programs are made of plastic film, the recycling refund producer responsibility organization must:

(a) Ensure that the standard bags have a minimum of 50 percent postconsumer recycled content;

and (c) Include instructions on how the bag should be utilized and recycled through ana expressdrop-off redemptionprogram. site and any applicable redemption.

13.14.

FULL-SERVICENONPROFIT RECYCLING REFUND REDEMPTION SITES.PROGRAM.

(1) A recycling refund organizationproducer mustresponsibility ensureorganization themay establishmentadminister of a sufficientprogram numberfor of full-service redemption sites, either directly or through partnerships with nonprofit organizations,organizations to meetparticipate the convenience standards outlined in the approved recycling refund programredemption planprogram. as specified in this chapter.

TheseThe sitesnonprofit mustprogram allowmay individualsprovide, toeither returndirectly coveredor beveragethrough containerspartnerships andwith receivelocal immediateservice refundsproviders or local governments, support services for theirsocially returns.vulnerable populations.

The(2) A recycling refund producer responsibility organization may also,administer eithera directlyprogram orto throughalso partnershipsaccept withdirect, localsorted servicereturns providersin orlarge governmentvolume entities,quantities offerat supportits servicesprocessing facilities for an additional refund value premium if the containers are returned by organizations certified as a nonprofit organization pursuant to sociallysection vulnerable501(c)(3) populations.of the internal revenue code that are approved by the recycling refund producer responsibility organization and serve very low-income individuals who rely on regular container refunds through the recycling refund system as a source of daily funds.

Additionally,The full-servicerecycling redemptionp. sites may function as centralized processing facilities, aggregating and processing covered beverage containers from express redemption sites within the program.

(2)16 TheHB recycling1607 refund producer responsibility organization may administerprovide apick-up programservice for nonprofitcontainers organizationscollected tounder participatethis insection. the recycling refund redemption program.

The(3) nonprofitTo programlimit mayfraud provide,and eitherensure directlythat orservices throughare partnershipsdeployed withwhere localthey serviceare providersmost needed, a recycling refund producer responsibility organization may approve or governmentdeny entities,partnerships supportdescribed servicesin forthis sociallysection vulnerableat populations.its sole discretion.

(3) The recycling refund producer responsibility organization must administer a program to also accept direct, sorted returns in large volume quantities at its processing facilities for an additional per-container refund value premium if the containers are returned by organizations certified as a nonprofit organization pursuant to section 501(c)(3) of the internal revenue code that are approved by the recycling refund producer responsibility organization and serve very low-income individuals who rely on regular container refunds through the recycling refund system as a source of daily funds.

The recycling refund producer responsibility organization must provide pick-up service for containers collected under this section.

p.

17 SHB 1607 (4) To limit fraud and ensure that services are deployed where they are most needed, the recycling refund producer responsibility organization may approve or deny partnerships described in this section at its sole discretion.

14.15.

(1) Each retail establishment must charge for the refund value of covered beverage containers.

(2) A retail establishment larger than 20,000 square feet must sell the standard bags for the bag-dropredemption program offered as part of the recycling refund program at the price established by thea recycling refund producer responsibility organization.

(3) A retail establishment may choose to host an express redemption site or host a collection event, or both, in their parking lot through mutual agreement with thea recycling refund producer responsibility organization who will provide fair compensation and assume lease costs, and all operational and maintenance costs for the redemption site.

(4) A retail establishment that chooses to host an express redemption site is eligible to have a self-serve kiosk, located at the retailer at no charge by thea recycling refund producer responsibility organization, to facilitate the printing of redemption vouchers and pay the value of redemption vouchers to consumers that can be used on the premises.

(5) TheA recycling refund producer responsibility organization shall reimburse retailers for the value of valid vouchers redeemed by consumers.

NEWp. SECTION.

17 HB 1607 NEW SECTION.

15.16.

(1) TheRecycling recycling refund producer responsibility organizationorganizations shall p.facilitate the collection of covered beverage containers from on-site establishments.

18 SHB 1607 facilitate the collection of covered beverage containers from on-site establishments.

The recycling refund producer responsibility organization may facilitate the collection of covered beverage containers from on-site consumption establishments by contracting with a third party.

(2) On-site consumption establishments may choose to host an express redemption site on their property through mutual agreement with thea recycling refund producer responsibility organization which will provide fair compensation and assume lease costs, and all operational and maintenance costs for the site.

(3) A recycling refund producer responsibility organization may work with and compensate distributors, contracted express redemption site operators, or other entities to help facilitate the collection of covered beverage containers from on-site consumption establishments for recycling.

16.17.

TheRecycling recycling refund producer responsibility organizationorganizations may use any refund value that is not redeemed by the consumer for any of the following purposes:

or (4) Other activities that are described in the recycling refund program plan that directly contribute to achieving the performance requirements described in section 1718 of this act and the convenience standards described in section 1011 of this act.

17.18.

(2) By the end of year five of the program, the redemption rate must be greater than 80 percent aggregated for all covered beverage containers;

(3) The reuse rates are to increase each year after the first plan period;

1918 SHBHB 1607 (4)(2) DemonstrateBy thatthe convenienceend standardsof asyear requiredfive underof thisthe chapterprogram, havethe beenredemption achievedrate ormust exceeded;be greater than 80 percent aggregated for all covered beverage containers;

(3) Develop a reuse and refill performance target that is to increase each year after the first plan period;

(4) Demonstrate that convenience standards as required under section 11 of this act have been achieved or exceeded;

18.19.

(1) Starting after the first full month that covered beverage containers are sold with the applicable refund value, the recycling refund producer responsibility organizationorganizations shall make a monthly payment directly to each material recovery facility who complies with the reporting criteria outlined in section 2021 of this act.

(2) TheRecycling recycling refund producer responsibility organizationorganizations shall establish a quality standard for each material.

(4) TheA recycling refund producer responsibility organization must convert the material tons to unit equivalent and pay the facilities based on covered beverage containers that meet the designated quality standards.

(5) The monthly payment required to material recovery facilities must be a payment equivalent to at least 50 percent of the refund value for covered beverage containers for each covered beverage container material that the material recovery facility transferred to additional materials processing or end markets.

(6) Material recovery facilities must share the payments with servicetheir providersconsumers consistent with their bundled services or processing contractscontract or other agreements orand regulations,supply asagreements applicable, so that servicecommunities providers receive the appropriate amount of the refund values paid for the amount of covered beverage containers delivered by the service providers to material recovery facilities and drop-offp. facilities.

p.19 HB 1607 generators receive the appropriate amount of the refund values paid to material recovery facilities and drop-off facilities.

20 SHB 1607 (7) The operators of material recovery facilities shall use an industry standard scale to measure the weight of all covered beverage container materials that enter the facility.

(8) TheA recycling refund producer responsibility organization may conduct quarterly audits on the quality and quantity of the material recovery facilities' material upon request by the organization and at the organization's expense.

(9) TheA recycling refund producer responsibility organization may partner with a material recovery facility to provide space and install the necessary equipment to colocate a recycling refund processing facility in the same vicinity.

19.20.

(1) If an extended producer responsibility program for paper and packaging is enacted in the state, the paper and packaging producer responsibility organization for packaging and thea recycling refund producer responsibility organization must create a coordination plan to ensure that programs are complementary and that all targets are met.

As part of the coordination plan, the paper and packaging producer responsibility organization and thea recycling refund producer responsibility organization are to identify actions to jointly optimize infrastructure for recyclingreuse collection and reuserefill programs for bothrecycling programs.refund and packaging covered materials.

(2) The coordination plan between the producer responsibility organization for paper and packaging and thea recycling refund producer responsibility organization must contain the following:

(b) A description of a reciprocal compensation mechanism such that thea recycling refund producer responsibility organization pays the paper and packaging producer responsibility organization for covered beverage containers in material recovery facilities, and the packaging producer responsibility organization pays the recycling p.

2120 SHBHB 1607 packaging producer responsibility organization pays a recycling refund producer organization for secondary packaging managed through the recycling refund system;

(d) An evaluation strategy to assess opportunities to coordinate identification of, and efficient access to, collection infrastructure, processing infrastructure, reuse and refill infrastructure, and responsible end markets.

20.21.

(1) BeginningRecycling April 30, 2029, and each year thereafter, the recycling refund producer responsibility organizationorganizations must submit an annual report to the department for the preceding year that contains the following:

(c) Documentation that access to redemption sites in urban areas builds on existing recycling convenienceconvenience; and is accessible and convenient for individuals relying on public transit or nonmotorized forms of transportation;

(d) Documentation that reasonable opportunities are provided for individuals to receive immediate refunds for returns of coveredlarge beveragevolume containers;redemption options;

(e) DocumentationAn evaluation of largewhether volume redemption options;options disproportionately burden underserved communities or socially vulnerable populations;

p.(f) Results of consumer awareness and behavior surveys;

22(g) SHBProgress 1607made (f)toward Anthe evaluationperformance targets reported in the same units used to establish producer fees under section 5 of whetherthis redemptionact optionsand disproportionatelyreported burdenstatewide, underservedfor communitieseach orcounty, sociallyand vulnerablefor populations;each city with a population greater than 1.5 percent of the state population, p.

(g)21 ResultsHB 1607 including the amount of consumerrecycling awarenessrefund covered beverage containers successfully reused, recycled, and behaviordisposed surveys;of by recycling refund covered materials type and the type of redemption site used;

(h) ProgressThe madetotal towardcost theto performanceimplement targets reported in the sameprogram units used to establish producer fees under section 4 of this act and reported statewide, for each county, and for each city with a populationdetailed greaterdescription than 1.5 percent of theprogram stateexpenditures population, including the amount of recycling refund covered beverage containers successfully reused, recycled, and disposed of by recyclingcategory, refundincluding: covered materials type and the type of redemption site used;

(i) The total cost to implement the program and a detailed description of program expenditures by category, including:

(j)(i) A list of producers found to be out of compliance with this act and actions taken by the recycling refund producer responsibility organization to return producers to compliance, and notification of any producers that are no longer participating in the organization or have been expelled due to their lack of compliance with proposed amendments to the recycling refund program plan to improve program performance or reduce costs, including changes to producer fees, infrastructure investments, reimbursement rates, or the refund value;

and (k)(j) Recommendations for additions or removals of covered beverage containers asto prescribedthe list developed under section 45 of this act.

(3) All data reported by thea recycling refund producer responsibility organization under this section must, at the request of the department no more than once annually, be audited by an independent third party.

TheA recycling refund producer responsibility organization is responsible for all costs associated with the data audit.

Auditable data shall only include data held by thea recycling refund producer responsibility organization.

Auditing of any data inputs to thea recycling refund producer responsibility organization p.is the responsibility of the recycling refund producer responsibility organization.

23(4) SHBA 1607recycling isrefund theproducer responsibility organization that submits information or records to the department under this chapter may request that a portion of the recyclinginformation refundor producerrecords responsibilitybe organization.made available only for the confidential use of the department, the director, or the appropriate division of the department.

(4) The recyclingdirector refundof producer responsibility organization that submits information or records to the department undershall thisgive chapterconsideration mayto request that a portion of the informationrequest, orand recordsif be made available only for the confidentialp. use of the department, the director, or the appropriate division of the department.

The22 directorHB of1607 the department shall give consideration to the request, and if the director determines that this action is not detrimental to the public interest and is otherwise in accordance with policies and purposes of chapter 43.21A RCW, the director must grant the request for the information to remain confidential as authorized in RCW 43.21A.160.

21.22.

TheA recycling refund producer responsibility organization that fails to meet a performance target approved in a recycling refund program plan must, within 90 days of filing an annual report under section 2021 of this act, file with the department an explanation of the factors contributing to the failure and propose an amendment to the recycling refund program plan specifying changes in operations that the recycling refund producer responsibility organization will make that are designed to achieve the performance targets.

22.23.

BeginningBy AprilAugust 30,1, 2029,2028, and each year thereafter, each material recovery facility and material processor that receives recycling refund program covered materials must report to the department the following:

p.

24 SHB 1607 NEW SECTION.

Sec.

23.

ANTICOMPETITIVE CONDUCT.

The recycling refund producer responsibility organization that arranges redemption, recycling, waste reduction, or reuse services under this act may engage in anticompetitive conduct to the extent necessary to plan and implement redemption, recycling, waste reduction, or reuse systems to meet the obligations under this act, and is immune from liability under state laws relating to antitrust, restraint of trade, and unfair trade practices.

ANTICOMPETITIVE CONDUCT.

A recycling refund producer responsibility organization that arranges redemption, recycling, waste reduction, or reuse services under this act may engage in anticompetitive conduct to the extent necessary to plan and implement redemption, recycling, waste reduction, or reuse systems to meet the obligations under this act, and is immune from liability under state laws relating to antitrust, restraint of trade, and unfair trade practices.

p.

23 HB 1607 NEW SECTION.

Sec.

25.

(i) Issue a corrective action order to a producer or thea recycling refund producer responsibility organization;

(ii) Issue an order to thea recycling refund producer responsibility organization to provide for the continued implementation of the program in the absence of an approved plan;

p.(iii) Revoke the recycling refund producer responsibility organization's plan approval and require implementation of the contingency plan;

25(iv) SHBRequire 1607a (iii) Revoke the recycling refund producer responsibility organization'sorganization planto approvalrevise andor requireresubmit implementationa ofplan thewithin contingencya plan;specified time frame;

(iv) Require the recycling refund producer responsibility organization to revise or resubmit a plan within a specified time frame;

(3) A person may not sell or distribute in or into the state a covered beverage container of a producer that is not participating in thep. recycling refund producer responsibility organization.

24 HB 1607 a recycling refund producer responsibility organization.

(5) Penalties levied under this section must be deposited in the recycling refund program account created in section 2526 of this act.

25.26.

Expenditures from the account may be used by the department only for implementing, p.administering, and enforcing the requirements of this chapter.

26 SHB 1607 administering, and enforcing the requirements of this chapter.

26.27.

In computing tax due under this chapter, a taxpayer may deduct from the measure of tax amounts derived from charges for the refund valuep. of qualifying beverage containers as required under chapter 70A.--- RCW (the new chapter created in section 29 of this act).

25 HB 1607 value of qualifying beverage containers as required under chapter 70A.--- RCW (the new chapter created in section 30 of this act).

27.28.

or (5)(a) The sale of prepared food or beverages by caterers where the food or beverages are to be served for immediate consumption in p.or on individual nonsingle use containers at premises occupied or controlled by the customer.

27 SHB 1607 or on individual nonsingle use containers at premises occupied or controlled by the customer.

Nonsingle use containers do not include pizza delivery bags and similar insulated containers that do not directly contact thep. food.

26 HB 1607 the food.

(6) The charge for the refund value of qualifying beverage containers as required under chapter 70A.--- RCW (the new chapter created in section 2930 of this act), if the charge is separately stated on a receipt, invoice, or similar billing document given to the purchaser.

28.29.

The provisions of RCW 82.32.805 and 82.32.808 do not apply to sections 2627 and 2728 of this act.

29.30.

Sections 1 through 2526 of this act constitute a new chapter in Title 70A RCW.

2827 SHBHB 1607