House
File
575
-
Introduced
HOUSE
FILE
575
BY
COMMITTEE
ON
ENVIRONMENTAL
PROTECTION
(SUCCESSOR
TO
HSB
163)
A
BILL
FOR
An
Act
repealing
the
beverage
containers
control
program,
1
creating
a
recycling
program
and
a
litter
control
and
2
community
enhancement
initiative,
imposing
certain
recycling
3
program
fees
and
litter
control
and
community
enhancement
4
excise
taxes,
modifying
references
to
the
waste
volume
5
reduction
and
recycling
fund,
and
including
effective
date
6
provisions.
7
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
455C.1
Definitions.
1
1.
“Beverage”
means
wine
as
defined
in
section
123.3,
2
subsection
47,
alcoholic
liquor
as
defined
in
section
123.3,
3
subsection
5,
beer
as
defined
in
section
123.3,
subsection
7,
4
mineral
water,
soda
water,
and
similar
carbonated
soft
drinks
5
in
liquid
form
and
intended
for
human
consumption.
6
2.
“Beverage
container”
means
a
sealed
glass,
plastic,
7
cardboard,
or
metal
bottle,
can,
jar,
or
carton
containing
a
8
beverage.
9
3.
“Commission”
means
the
environmental
protection
10
commission.
11
4.
“Consumer”
means
a
person
who
purchases
a
beverage
in
a
12
beverage
container
for
use
or
consumption.
13
5.
“Core
recyclables”
includes
aluminum
or
steel
cans,
14
plastic
bottles
designated
with
society
of
plastics
industry
15
resin
codes
one
through
seven
as
determined
by
ASTM
(American
16
society
for
testing
and
materials)
international,
glass
17
bottles
and
jars,
newspapers,
magazines,
junk
mail,
corrugated
18
cardboard,
boxboard,
mixed
paper,
beverage
cartons,
and
19
additional
materials
designated
periodically
by
the
department.
20
6.
“Dealer”
means
a
person
who
engages
in
the
sale
of
21
beverages
in
beverage
containers
to
a
consumer.
22
7.
“Department”
means
the
department
of
natural
resources
23
created
in
section
455A.2.
24
8.
“Director”
means
the
director
of
the
department.
25
9.
“Distributor”
means
a
person
who
engages
in
the
sale
of
26
beverages
in
beverage
containers
to
a
dealer
in
this
state,
27
including
any
manufacturer
who
engages
in
such
sales.
28
10.
“Eligible
applicant”
means
a
person
who
submits
a
29
completed
application
to
the
department
under
this
chapter.
30
11.
“Manufacturer”
means
a
person
who
fills
beverage
31
containers
with
beverages
for
sale
to
distributors
or
dealers.
32
12.
“Recycling”
means
the
same
as
defined
in
section
455D.1.
33
Sec.
2.
NEW
SECTION
.
455C.2
Findings
and
policy.
34
The
general
assembly
reaffirms
its
findings
and
statements
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of
policies
set
forth
in
sections
455D.2
through
455D.4.
1
Sec.
3.
NEW
SECTION
.
455C.3
Duties
of
the
director.
2
The
director
shall
do
all
of
the
following:
3
1.
Unless
otherwise
specified
in
this
chapter,
recommend
4
rules
to
the
commission
necessary
to
administer
this
chapter.
5
2.
Administer
the
recycling
program
created
by
this
6
chapter.
7
3.
Enter
into
contracts
and
agreements
with
local
units
of
8
government,
other
state
agencies,
governments
of
other
states,
9
governmental
agencies
of
the
United
States,
other
public
and
10
private
contractors,
and
other
persons
as
may
be
necessary
or
11
beneficial
in
carrying
out
the
department’s
duties
under
this
12
chapter,
with
commission
approval
required
for
contracts
or
13
agreements
in
excess
of
twenty-five
thousand
dollars.
14
4.
Organize
an
application
review
team
to
review
proposals
15
submitted
to
the
department
in
accordance
with
this
chapter.
16
Sec.
4.
NEW
SECTION
.
455C.4
Rules.
17
The
commission
shall
adopt
rules
pursuant
to
chapter
17A
18
necessary
to
administer
this
chapter.
19
Sec.
5.
NEW
SECTION
.
455C.5
Recycling
program
planning.
20
1.
An
eligible
applicant
may
submit
a
recycling
program
21
proposal
to
the
department
on
or
before
January
1,
2018.
22
a.
The
department
may
provide
proposal
guidance
and
funding
23
assistance
to
an
eligible
applicant.
24
b.
The
department
may
encourage
and
reward
regionalized
25
efforts
through
its
recycling
program
proposal
funding
26
assistance
decisions.
27
2.
A
proposal
submitted
by
an
eligible
applicant
must
28
include
all
of
the
following:
29
a.
An
inventory
of
the
eligible
applicant’s
existing
30
recycling
programs
and
infrastructure.
31
b.
New
investment
and
personnel
required
to
comply
with
32
recycling
program
requirements.
33
c.
Planned
recycling
education
and
outreach
initiatives.
34
d.
Projected
landfill
diversion
results
from
the
expenditure
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of
the
requested
funding
assistance.
1
e.
Projected
greenhouse
gas
emissions
avoided
or
reduced.
2
f.
Projected
economic
benefits
to
cities
and
counties.
3
g.
A
business
plan
to
ensure
successful
operation
after
4
funding
assistance
ends.
5
h.
Planned
initiatives
to
encourage
innovation
regarding
use
6
of
recycling
materials.
7
3.
Proposals
submitted
by
eligible
applicants
must
8
prioritize
the
recovery
of
high-value
materials
from
the
waste
9
stream
and
emphasize
the
highest
and
best
use
for
recovered
10
materials
given
economic
and
logistic
constraints.
11
4.
The
department
shall
review
and
may
approve
submitted
12
proposals
according
to
criteria
developed
by
the
department.
13
The
department
shall
return
unsatisfactory
proposals
to
14
eligible
applicants
for
revision
and
resubmission.
Eligible
15
applicants
whose
proposals
are
not
approved
by
the
department
16
are
not
eligible
for
assistance
from
the
recycling
program.
17
5.
Proposals
must
include
a
means
of
collecting
core
18
recyclables
based
on
best
practices
for
improving
accessibility
19
and
convenience
in
the
eligible
applicant’s
region
of
the
20
state,
and
may
include
special
handling
for
glass
containers.
21
Eligible
applicants
are
encouraged
to
pursue
revenue-sharing
22
clauses
in
contracts
for
the
sale
of
recyclables
that
allow
for
23
incentives
to
maintain
high-volume
and
high-value
recycling
24
streams.
25
Sec.
6.
NEW
SECTION
.
455C.6
Recycling
program
——
26
utilization.
27
The
recycling
program
shall
do
the
following:
28
1.
Issue
grants
or
no-interest,
low-interest,
or
forgivable
29
loans
to
eligible
applicants
for
the
preparation
of
recycling
30
program
proposals
submitted
under
section
455C.5.
Total
31
funding
assistance
for
recycling
program
proposal
grants
and
32
loans
for
all
years
shall
not
exceed
five
million
dollars.
33
2.
Include
review
by
the
department
of
recycling
proposals,
34
conducting
baseline
recycling
research,
and
enforcing
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provisions
of
this
chapter,
including
enforcement
of
the
1
payment
of
the
recycling
program
fee.
2
3.
Issue
grants
or
no-interest,
low-interest,
or
3
forgivable
loans
for
capital
investment
needed
for
collection,
4
transportation,
processing,
or
marketing
of
core
recyclables
5
and
other
recyclables.
Priorities
for
these
grants
and
loans
6
include
all
of
the
following:
7
a.
Start-up
or
transition
costs
for
residential
recycling
8
programs
and
for
new
initiatives
to
collect
core
recyclables
9
and
other
recyclables
in
conjunction
with
commercial
recycling
10
programs.
11
b.
Projects
and
proposals
demonstrating
cost-effective
solid
12
waste
diversion
programs.
13
c.
Costs
for
businesses
dependent
upon
the
beverage
14
containers
control
program
prior
to
January
1,
2019,
to
15
transition
into
recycling
system
entities
including
but
not
16
limited
to
redemption
centers,
collectors,
and
transportation
17
providers.
18
Sec.
7.
NEW
SECTION
.
455C.7
Recycling
program
fee.
19
1.
As
of
January
1,
2019,
the
department
shall
impose
a
20
recycling
program
fee
of
one
cent
per
beverage
container
on
21
distributors
as
a
temporary
assessment
that
will
remain
in
22
place
until
recycling
program
fee
revenues
equal
sixty
million
23
dollars,
at
which
point
the
recycling
program
fee
shall
no
24
longer
be
imposed.
25
2.
Revenue
generated
from
the
recycling
program
fee
shall
26
not
be
subject
to
appropriation
and
shall
be
deposited
in
the
27
solid
waste
account
of
the
groundwater
protection
fund
created
28
in
section
455E.11,
subsection
2,
to
be
utilized
as
provided
in
29
section
455E.11,
subsection
2,
paragraph
“a”
,
subparagraph
(1),
30
subparagraph
division
(f).
31
3.
The
department
shall
examine
other
more
diversified
32
funding
mechanisms,
including
modifications
to
the
litter
33
control
and
community
enhancement
fee
imposed
under
section
34
455C.9,
to
provide
ongoing
support
for
recycling
programs
after
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the
recycling
program
fee
is
no
longer
imposed.
1
4.
Expenditures
for
recycling
program
administration
and
2
support
may
be
paid
using
moneys
received
for
deposit
in
the
3
solid
waste
account
under
this
section
but
shall
not
exceed
4
five
percent
of
the
total
moneys
received
for
deposit
each
5
fiscal
year.
6
5.
Fees
imposed
by
this
section
shall
be
paid
by
7
distributors
to
the
department
on
a
quarterly
basis
with
8
payment
due
by
no
more
than
ninety
days
following
the
quarter
9
during
which
the
fees
were
collected.
The
payment
shall
be
10
accompanied
by
a
return
which
shall
identify
the
amount
of
fees
11
to
be
deposited
in
the
solid
waste
account
of
the
groundwater
12
protection
fund.
13
Sec.
8.
NEW
SECTION
.
455C.8
Litter
control
and
community
14
enhancement
initiatives.
15
The
keep
Iowa
beautiful
fund
created
in
section
314.28
may
be
16
utilized
to
financially
support
litter
control
and
community
17
enhancement
initiatives
that
do
any
of
the
following:
18
1.
Conduct
statewide
surveys
every
ten
years
to
allow
19
tracking
of
litter
control
and
prevention
progress.
20
2.
Develop
and
utilize
public
relations
campaigns
primarily
21
focused
on
litter
control
and
community
enhancement.
22
3.
Promote
teachers-going-green-program
lesson
plans
that
23
meet
core
federal
and
state
education
requirements.
24
4.
Coordinate
community
service
outreach
grant
programs
25
targeted
at
youth
groups,
elementary
school
fundraisers,
26
and
religious
and
community
improvement
clubs,
schools,
or
27
specialized
programs.
28
5.
Approve
the
funding
of
submitted
litter
control
29
and
community
enhancement
proposals
according
to
criteria
30
determined
by
the
administrator
of
the
keep
Iowa
beautiful
31
fund.
Inadequate
or
incomplete
proposals
shall
be
returned
32
to
the
eligible
applicant
for
revision
and
resubmission.
33
Eligible
applicants
whose
proposals
are
not
approved
by
the
34
administrator
of
the
keep
Iowa
beautiful
fund
shall
not
be
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eligible
for
funding
assistance
from
the
keep
Iowa
beautiful
1
fund.
2
Sec.
9.
NEW
SECTION
.
455C.9
Litter
control
and
community
3
enhancement
fee.
4
1.
A
litter
control
and
community
enhancement
fee
is
5
imposed
effective
January
1,
2019,
as
an
excise
tax
collected
6
by
the
department
of
revenue
at
a
rate
of
fifteen-thousandths
7
of
one
percent
upon
the
sales
price
of
beverages
in
beverage
8
containers.
9
2.
All
revenue
generated
from
the
litter
control
and
10
community
enhancement
fee
shall
be
deposited
into
a
separate
11
account
in
the
keep
Iowa
beautiful
fund.
Revenue
generated
12
from
the
litter
control
and
community
enhancement
fee
shall
not
13
be
used
for
any
purpose
other
than
those
referenced
in
section
14
455C.8
and
shall
not
be
subject
to
appropriation
for
any
other
15
purpose.
16
3.
Fees
imposed
by
this
section
shall
be
paid
to
the
17
department
on
a
quarterly
basis
with
payment
due
by
no
more
18
than
ninety
days
following
the
quarter
during
which
the
fees
19
were
collected.
The
payment
shall
be
accompanied
by
a
return
20
which
shall
identify
the
amount
of
fees
to
be
deposited
in
the
21
keep
Iowa
beautiful
fund.
22
4.
The
director
of
revenue
shall
administer
the
litter
23
control
and
community
enhancement
fee
as
an
excise
tax
on
the
24
sale
of
beverages
in
beverage
containers
as
nearly
as
possible
25
in
conjunction
with
the
administration
of
the
state
sales
and
26
use
tax
law,
except
that
portion
of
the
law
that
implements
the
27
streamlined
sales
and
use
tax
agreement.
The
director
shall
28
provide
appropriate
forms,
or
provide
on
the
regular
state
tax
29
forms,
for
reporting
the
excise
tax
liability.
30
Sec.
10.
Section
29C.8A,
subsection
1,
Code
2017,
is
amended
31
to
read
as
follows:
32
1.
An
emergency
response
fund
is
created
in
the
state
33
treasury.
The
first
one
hundred
thousand
dollars
received
34
annually
by
the
treasurer
of
state
for
the
civil
penalties
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and
fines
imposed
by
the
court
pursuant
to
sections
455B.146
,
1
455B.191
,
455B.386
,
and
455B.477
shall
be
deposited
in
the
2
waste
volume
reduction
and
recycling
fund
created
in
section
3
455D.15
.
The
next
hundred
thousand
dollars
shall
be
deposited
4
in
the
emergency
response
fund
and
any
additional
moneys
shall
5
be
deposited
in
the
household
hazardous
waste
account.
All
6
moneys
received
annually
by
the
treasurer
of
the
state
for
the
7
fines
imposed
by
sections
716B.2
,
716B.3
,
and
716B.4
shall
also
8
be
deposited
in
the
emergency
response
fund.
9
Sec.
11.
Section
123.24,
subsection
5,
Code
2017,
is
amended
10
by
striking
the
subsection.
11
Sec.
12.
Section
123.26,
Code
2017,
is
amended
to
read
as
12
follows:
13
123.26
Restrictions
on
sales
——
seals
——
labeling.
14
Alcoholic
liquor
shall
not
be
sold
by
a
class
“E”
liquor
15
control
licensee
except
in
a
sealed
container
with
identifying
16
markers
as
prescribed
by
the
administrator
and
affixed
in
the
17
manner
prescribed
by
the
administrator,
and
no
such
container
18
shall
be
opened
upon
the
premises
of
a
state
warehouse.
The
19
division
shall
cooperate
with
the
department
of
natural
20
resources
so
that
only
one
identifying
marker
or
mark
is
needed
21
to
satisfy
the
requirements
of
this
section
and
section
455C.5,
22
subsection
1
.
Possession
of
alcoholic
liquors
which
do
not
23
carry
the
prescribed
identifying
markers
is
a
violation
of
this
24
chapter
except
as
provided
in
section
123.22
.
25
Sec.
13.
Section
123.187,
subsection
4,
paragraph
b,
Code
26
2017,
is
amended
by
striking
the
paragraph.
27
Sec.
14.
Section
423.6,
subsection
3,
paragraph
a,
Code
28
2017,
is
amended
to
read
as
follows:
29
a.
Any
tangible
personal
property
including
containers
which
30
it
is
intended
shall,
by
means
of
fabrication,
compounding,
31
manufacturing,
or
germination,
become
an
integral
part
of
other
32
tangible
personal
property
intended
to
be
sold
ultimately
at
33
retail
,
and
containers
used
in
the
collection,
recovery,
or
34
return
of
empty
beverage
containers
subject
to
chapter
455C
.
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575
Sec.
15.
Section
455B.313,
subsection
1,
Code
2017,
is
1
amended
to
read
as
follows:
2
1.
A
distributor
as
defined
in
section
455C.1
,
subsection
3
9
,
shall
not
sell
or
offer
to
sell
any
beverage
container
4
if
the
beverage
container
is
connected
to
another
beverage
5
container
by
a
device
constructed
of
a
material
which
is
not
6
biodegradable
or
photodegradable.
7
Sec.
16.
Section
455D.6,
subsection
2,
Code
2017,
is
amended
8
to
read
as
follows:
9
2.
Administer
and
coordinate
the
waste
volume
reduction
and
10
recycling
fund
created
under
section
455D.15
.
11
Sec.
17.
Section
455D.15,
subsection
1,
Code
2017,
is
12
amended
to
read
as
follows:
13
1.
A
waste
volume
reduction
and
recycling
fund
is
created
14
within
the
state
treasury.
Moneys
received
by
the
department
15
from
fees,
including
general
revenue,
federal
funds,
awards,
16
wills,
bequests,
gifts,
or
other
moneys
designated
shall
be
17
deposited
in
the
state
treasury
to
the
credit
of
the
fund.
18
Notwithstanding
section
8.33
,
any
unexpended
balance
in
the
19
fund
at
the
end
of
each
fiscal
year
shall
be
retained
in
the
20
fund.
Any
interest
and
earnings
on
investments
from
money
21
in
the
fund
shall
be
credited
to
the
fund,
section
12C.7
22
notwithstanding.
23
Sec.
18.
Section
455D.15A,
Code
2017,
is
amended
to
read
as
24
follows:
25
455D.15A
Permitting
of
waste
conversion
technologies
26
operations
——
fees.
27
A
facility
using
waste
conversion
technologies,
as
defined
28
in
section
455B.301
,
shall
annually
obtain
a
permit
from
the
29
department.
The
department
shall
establish
by
rule
an
annual
30
fee
for
such
permits,
which
shall
be
sufficient
to
cover
31
the
costs
of
administering
the
permit
program.
The
moneys
32
collected
by
the
department
shall
be
deposited
in
the
waste
33
volume
reduction
and
recycling
fund
established
in
section
34
455D.15
and
shall
be
used
for
the
purposes
of
administering
the
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permit
program.
1
Sec.
19.
Section
455E.11,
subsection
2,
paragraph
a,
2
subparagraph
(1),
subparagraph
division
(f),
Code
2017,
is
3
amended
to
read
as
follows:
4
(f)
The
balance
of
the
remaining
funds
shall
be
used
by
the
5
department
to
develop
do
the
following:
6
(i)
Develop
and
implement
demonstration
projects
for
7
landfill
alternatives
to
solid
waste
disposal
including
8
recycling
programs.
These
funds
may
also
be
used
to
assist
9
(ii)
Assist
planning
areas
which
have
not
been
designated
10
as
environmental
management
systems
in
meeting
the
designation
11
requirements
of
section
455J.3
.
12
(iii)
Provide
financial
assistance
for
recycling
programs
13
described
in
section
455C.6
using
revenue
from
fees
imposed
14
under
section
455C.7.
15
Sec.
20.
REPEAL.
Chapter
455C,
Code
2017,
is
repealed.
16
Sec.
21.
REPEAL.
Section
455D.21,
Code
2017,
is
repealed.
17
Sec.
22.
TRANSITION
AND
IMPLEMENTATION.
The
department
18
of
natural
resources
and
the
administrator
of
the
keep
Iowa
19
beautiful
board
may
begin
preparations
to
implement
this
Act,
20
including
adoption
of
administrative
rules,
prior
to
January
1,
21
2018,
to
the
extent
necessary
to
transition
from
the
beverage
22
containers
control
law
to
full
implementation
of
the
provisions
23
relating
to
the
recycling
program
and
litter
control
and
24
community
enhancement
initiatives.
25
Sec.
23.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
26
2018,
except
as
otherwise
provided
in
this
Act.
27
Sec.
24.
EFFECTIVE
DATE
——
TRANSITION
AND
28
IMPLEMENTATION.
The
section
of
this
Act
providing
for
29
transition
and
implementation
takes
effect
July
1,
2017.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
repeals
current
Code
chapter
455C,
the
beverage
34
containers
control
law,
and
replaces
it
with
new
statewide
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recycling,
litter
control,
and
community
enhancement
programs.
1
The
bill
requires
an
eligible
applicant
to
submit
a
2
recycling
program
proposal
to
the
department
of
natural
3
resources
on
or
before
January
1,
2018,
outlining
its
proposals
4
regarding
recycling,
litter
control,
and
community
enhancement
5
programs
set
forth
in
new
Code
sections
455C.5
and
455C.8.
6
Eligible
applicants
without
approved
proposals
will
not
be
7
eligible
for
funding
assistance
from
the
new
programs
created
8
in
the
new
Code
chapter.
9
The
bill
deposits
moneys
into
the
solid
waste
account
of
the
10
groundwater
protection
fund
created
in
Code
section
455E.11(2)
11
for
use
by
the
recycling
program
collected
through
a
recycling
12
program
fee
imposed
by
the
department
of
natural
resources.
13
The
recycling
program
fee
is
a
temporary
assessment
that
will
14
remain
in
place
until
$60
million
is
raised,
at
which
point
the
15
recycling
program
fee
is
no
longer
imposed.
16
The
bill
requires
eligible
applicants
to
submit
17
litter
control
and
community
enhancement
proposals
to
the
18
administrator
of
the
keep
Iowa
beautiful
fund.
The
keep
Iowa
19
beautiful
fund
receives
moneys
from
a
new
litter
control
and
20
community
enhancement
fee
collected
by
the
department
of
21
revenue
at
a
rate
of
fifteen-thousandths
of
1
percent
of
the
22
sales
price
of
beverages
in
beverage
containers.
23
The
bill
authorizes
the
environmental
protection
commission
24
to
adopt
rules
pursuant
to
Code
chapter
17A
necessary
to
25
administer
the
new
Code
chapter
455C
provisions.
26
The
bill
modifies
the
title
of
the
waste
volume
reduction
27
and
recycling
fund
created
in
Code
section
455D.15
and
updates
28
references
to
that
fund
throughout
the
Code.
29
The
bill
removes
a
statutory
requirement
that
city
councils
30
or
county
boards
of
supervisors
that
provide
for
residential
31
solid
waste
collection
consider
mandatory
curbside
collection
32
of
recyclable
materials
as
a
proposed
ordinance.
33
The
bill
takes
effect
January
1,
2018,
except
that
the
34
department
of
natural
resources
and
the
administrator
of
the
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keep
Iowa
beautiful
fund
may
begin
implementation
on
July
1,
1
2017,
to
the
extent
necessary
to
transition
from
the
beverage
2
containers
control
law
to
full
implementation
of
the
provisions
3
relating
to
the
recycling
program
and
litter
control
and
4
community
enhancement
initiative.
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