wa-law.org > bill > 2025-26 > HB 1607 > Third Substitute

HB 1607 - Recycling & waste reduction

Source

Section 101

The legislature finds that Washington's current recycling system does not collect and recycle the majority of the 3,800,000,000 glass, plastic, and metal beverage containers put onto the market each year to their highest and best use in order to optimize the economic and environmental benefits of recycling for Washington residents.

The legislature recognizes improved recycling for beverage containers will help the state to reduce greenhouse gas emissions, reduce litter and specifically plastic pollution, expand opportunities for reusable containers, and support state and regional businesses to build a circular economy. Higher-quality materials always hold greater economic value and offer more diverse end markets. The recent struggles of regional end markets expose critical weaknesses in Washington's fragmented recycling system and underscore the urgent need for comprehensive reforms to divert recyclable materials, like glass, from landfills and ensure they are transformed into valuable new products. Recycling refund programs provide a proven solution by delivering high quality, source separated glass, plastic, and metal containers that will revitalize end markets and support robust local recycling infrastructure.

The legislature finds that by enacting a recycling refund program for glass, plastic, and metal beverage containers within an extended producer responsibility framework has been shown to be the most effective method for the recovery, reuse, and recycling of beverage containers and all packaging waste. By increasing recovery rates for beverage containers, these systems will help companies who manufacture these products meet recycled content goals and reduce their environmental footprint.

Recycling refund programs in other states have proven to drive up recycling rates by providing a direct financial incentive for residents to return used containers. In addition, these systems also have proven to reduce litter. Packaging pollution remains a significant issue in Washington, with over 2,000,000,000 pounds of packaging materials being landfilled, 11,600,000 pounds of litter entering public parks annually, and more than 26,000,000 pounds of litter accumulating along roadsides. Despite spending $12,000,000 annually on cleanup efforts, only a fraction of the problem is addressed. In contrast, states with recycling refund programs have reported reductions in beverage container litter by up to 84 percent, while achieving recovery rates for plastic bottles that are 3.5 times higher than states without such programs, an essential step in preventing ocean plastics and other environmental harm.

The legislature intends for recycling refunds to play a pivotal role in contributing to cleaner communities, a healthier recycling ecosystem, and stronger domestic manufacturing and circular economy.

Section 102

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

  1. "Alternative access redemption options" means alternative redemption methods included in the recycling refund producer responsibility organization's approved program plan.

  2. "Applicable refund value" means the value established under section 110 of this act.

  3. "Beverage" means a drinkable liquid intended for human oral consumption. "Beverage" does not include: (a) A drug regulated under the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 301 et seq.; (b) 100 percent fluid milk; or (c) infant formula.

  4. "Beverage container" means any prepackaged container for beverages.

  5. "Brand" means a name, symbol, word, logo, or mark that identifies an item and attributes the item and its components, including packaging, to the brand owner of the item.

  6. "Brand owner" means a person or entity that owns or licenses a brand or that otherwise has rights to market a product under the brand, whether or not the brand's trademark is registered.

  7. "Canner" means an individual who collects and redeems covered beverage containers for income.

  8. "Contracted redemption pick-up operators" means affiliated or unaffiliated companies or organizations that provide individualized valet or pick-up services of aggregated covered beverage containers for single-family or multifamily households.

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    1. "Covered beverage container" means any of the following beverage containers subject to a recycling refund:

      1. Except as provided in (a)(ii) of this subsection, any glass, plastic, or metal can or bottle with a capacity of at least 40 ml and no more than one gallon; and

      2. Beginning no earlier than the second plan implementation period, other beverage containers proposed for inclusion in the program by a recycling refund producer responsibility organization and approved by the department.

    2. "Covered beverage container" does not include a beverage container filled and packaged on-site at on-site consumption establishments at the time the beverage is purchased by the customer including, but not limited to, to-go cocktails, wine, or beer packaged for off-site consumption under RCW 66.24.710.

  10. "De minimis producer" means a producer that:

    1. In its most recent fiscal year introduced into commerce in this state less than one ton of covered beverage containers; or

    2. Has a global gross revenue, not including on-premises alcohol sales, for the prior fiscal year of:

      1. Until January 1, 2031, less than $5,000,000; or

      2. Beginning January 1, 2031, less than $5,000,000, as adjusted for inflation. The department must use the consumer price index for urban wage earners to calculate the annual rate of inflation adjustment effective January 1st of each year, beginning January 1, 2031.

  11. "Department" means the department of ecology.

  12. "Distributor" means any person or entity who engages in the sale of beverages in covered beverage containers to a retail establishment in this state, including any manufacturer or importer who engages in such sales to retail establishments or directly to consumers, and dealers who self-distribute their own brands.

  13. "Express redemption site" means a designated return location that allows individuals to return covered beverage containers. These locations do not provide cash handling on-site, rather, upon return, if needed, containers are transported to recycling refund processing facilities and refunds will be credited to the consumer's virtual account held by the recycling refund producer responsibility organization or their designee. This may include bag-drop systems, reverse vending machines, or other redemption modalities to enhance convenience and accessibility for consumers.

  14. "Full-service redemption site" means a return location or avenue where individuals may return covered beverage containers to receive immediate refunds for their returns.

  15. "Government entity" means any:

    1. County, city, town, or other local government, including any municipal corporation, quasi-municipal corporation, or special purpose district, or any office, department, division, bureau, board, commission, or agency thereof, or other local public agency;

    2. State office, department, division, bureau, board, commission, or other state agency;

    3. Federally recognized Indian tribe whose traditional lands and territories include parts of Washington; or

    4. Federal office, department, division, bureau, board, commission, or other federal agency.

  16. "Individual plan" means a plan submitted by a producer that registers with the department as a recycling refund producer responsibility organization to address the covered beverage containers of the producer.

  17. "Introduce" means to sell, offer for sale, distribute, or ship a product within or into this state.

  18. "Material recovery facility" means a facility that collects, compacts, repackages, sorts, or processes for transport source separated material for the primary purpose of recycling.

  19. "Online food delivery network company" means a corporation, partnership, sole proprietorship, or other entity that operates in this state and uses a digital network to connect consumers with on-site consumption establishments or delivery drivers to facilitate the purchase and delivery of prepared food or beverage containers.

  20. "Off-site consumption" means consumption of a beverage in a covered beverage container that is sold by an establishment and is intended to be consumed off the premises, and with the beverage container not retained at the same establishment after consumption.

  21. "On-site consumption" means consumption of a beverage in a covered beverage container that is sold by an establishment and is intended to be consumed on the premises, and with the beverage container retained at the same establishment after consumption.

  22. "On-site consumption establishment" means any person, corporation, partnership, business, dealer, hotel, facility, vendor, organization, caterer, or individual that sells beverages in covered beverage containers that are intended for immediate on-site consumption. An establishment that sells beverages in covered beverage containers for off-site consumption is an "on-site consumption establishment" as long as the establishment also sells beverages in covered beverage containers intended for immediate on-site consumption.

  23. "Overburdened communities" means the overburdened communities identified and prioritized by the department under RCW 70A.02.050(1)(a).

  24. "Packaging manufacturer" means any person, firm, association, partnership, or corporation that produces packaging or a packaging component of covered beverage containers.

  25. "Paper and packaging producer responsibility organization" means a producer responsibility organization established under chapter 70A.208 RCW.

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    1. "Producer" means:

      1. The brand owner responsible for the brand visible on a covered beverage container and who is responsible for compliance with the requirements of this chapter for a covered beverage container that is introduced, either physically or via e-commerce, in this state;

      2. If there is no person to which (a)(i) of this subsection applies, the producer is the person who is the importer of record for the covered beverage container into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in this state; or

      3. If there is no person to which (a)(i) or (ii) of this subsection applies, the producer is the person that first distributes the covered beverage container in or into this state.

    2. "Producer" does not include:

      1. Government entities; or

      2. Registered 501(c)(3) charitable organizations and 501(c)(4) social welfare organizations.

  27. "Recycling refund program" or "program" means the activities to implement the requirements of this chapter carried out by the recycling refund producer responsibility organization under an approved plan including the remittance and payment of a per-unit refund value to consumers for covered beverage containers and the collection and processing of covered beverage containers as described in this chapter.

  28. "Recycling refund advisory council" or "advisory council" means the council established in section 109 of this act.

  29. "Recycling refund processing facility" means a location that is designated by the recycling refund producer responsibility organization to receive, sort, and prepare beverage containers collected through the system for recycling or reuse.

  30. "Recycling refund producer responsibility organization" or "organization" means:

    1. A nonprofit corporation that is tax exempt under chapter 501(c)(3) of the federal internal revenue code created by a group of covered beverage container producers to carry out the obligations of producers under this chapter; or

    2. A producer that registers with the department as a recycling refund producer responsibility organization and implements an individual plan addressing the covered beverage containers of the producer.

  31. "Redemption rate" means the number of covered beverage containers redeemed for the refund value divided by the number of covered beverage containers introduced in the state in a calendar year.

  32. "Redemption site" means a public or private place that provides the ability to redeem a covered beverage container for which a recycling refund value was paid.

  33. "Responsible end market" means an entity that:

    1. 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;

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

    3. 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

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

  34. "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.

  35. "Reuse" means the redemption and return of a covered beverage container to the marketplace where the continued use of the covered beverage container is:

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

    2. Designed for durability and maintenance to extend its useful life and reduce demand for new production of the covered beverage container;

    3. 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

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

  36. "Reuse rate" means the percentage result obtained by dividing the number of reusable covered beverage containers introduced into the state by the total number of covered beverage containers introduced into the state during a calendar year. In calculating the reuse rate, the following covered beverage containers must be excluded from both the numerator and the denominator:

    1. Covered beverage containers for products protected by a recognized geographic indication, appellation of origin, or certification mark that legally requires the product to originate from a specific geographic region located more than 150 miles from Washington state, when such requirement is imposed by federal, state, or international law or treaty and therefore cannot be practicably sold in a reusable container; and

    2. Covered beverage containers for products that, under federal or state law, must be produced in a jurisdiction located more than 150 miles from Washington state and therefore cannot be practicably sold in a reusable container.

  37. "Reuseable container redemption rate" means the number of reusable covered beverage containers redeemed for the refund value divided by the number of reusable covered beverage containers introduced in the state in a calendar year.

  38. "Service provider" means an entity that provides recycling collection or recycling processing services for covered beverage containers. A government entity that provides, contracts for, or otherwise arranges for another party to provide recycling collection or recycling processing services for covered beverage container materials within its jurisdiction is a service provider regardless of whether it provided, contracted, or otherwise arranged for similar services before the approval of the applicable plan.

  39. "Socially vulnerable populations" has the same meaning as in RCW 70A.208.020.

Section 103

  1. A producer must:

    1. Beginning April 15, 2027, be a member of a recycling refund producer responsibility organization registered in this state;

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

    3. Maintain membership with and pay fees to a recycling refund producer responsibility organization under which they are registered. De minimis producers are not required to pay fees to a recycling refund producer responsibility organization; and

    4. Comply with all other applicable requirements under this chapter.

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    1. Upon registration with a 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.

    2. Upon request, the recycling refund producer responsibility organization must provide to the department a list of producers and beverage brands that the recycling refund producer responsibility organization has determined to be out of compliance with the requirement of (a) of this subsection. The department must post this list on its website.

    3. The fees required in (a) of this subsection must be paid before the beverage brand is introduced, either physically or via e-commerce into Washington.

  3. A producer must provide the following to the appropriate recycling refund producer responsibility organization using a standardized method provided by the recycling refund producer responsibility organization:

    1. The name of the beverage as identified through the use of letters, words, or symbols on the product label affixed to, or a part of, the covered beverage container;

    2. The type of beverage contained in the covered beverage container using an appropriate categorization method for beverages as determined by a recycling refund producer responsibility organization;

    3. The size or fluid volume of the covered beverage container;

    4. The material type of the covered beverage container;

    5. The universal product code or European article number associated with the covered beverage container; and

    6. If the covered beverage container is single use or reusable.

  4. A producer must provide necessary information regarding quantities of covered beverage containers sold, to the recycling refund producer responsibility organization under which they are registered at a frequency to be determined by the recycling refund producer responsibility organization.

  5. Beginning March 1, 2029, a producer that is not a member of a registered recycling refund producer responsibility organization under this chapter or has not registered with the department as an individual recycling refund producer responsibility organization may not introduce covered materials.

Section 104

Each recycling refund producer responsibility organization must:

  1. By March 1, 2027, be registered with the department;

  2. By April 1, 2027, establish an initial producer fee structure to fund the initial implementation of the program, to be used until a recycling refund producer responsibility organization has an approved program plan as required under section 107 of this act, and collect fees from registered producers that are not de minimis producers;

  3. By May 1, 2027, submit a one-time payment to the department, in an amount determined by the department, to cover future estimated costs of the department under this chapter from the effective date of this section through June 30, 2028. A portion of the one-time payment must be deposited in the state account that was used to fund the department's costs prior to receipt of the one-time payment;

  4. By May 1, 2027, submit a one-time payment to the paper and packaging producer responsibility organization to reimburse them for the payment made to the Department of Ecology for the recycling refund program start-up costs.

  5. By June 30, 2028, and each June 30th thereafter, submit an annual registration fee to the department to fund the estimated costs of the department to implement, administer, and enforce this chapter in the coming fiscal year;

  6. By January 30, 2028, and every year thereafter, until the program has begun, submit the following to the department:

    1. A list of its registered producers and their brands of beverages in covered beverage containers; and

    2. The total gross unit sales volume of beverages in covered beverage containers introduced by its registered producers in Washington during the preceding year;

  7. By October 1, 2028, 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;

  8. By October 1, 2028, or six months after rule adoption, whichever is later, and every five years thereafter, for paper and packaging producer responsibility organizations registered with the department under chapter 70A.208 RCW and each recycling refund producer responsibility organization, submit a coordination plan that meets the requirements of this chapter and chapter 70A.208 RCW to the department for approval;

  9. Once the recycling refund program plan is approved by the department under this section, implement a recycling refund program as described in its approved program plan by January 1, 2030, or six months after plan approval, whichever is later. The recycling refund program must begin paying the refund value for covered beverage containers on the same day that the program begins collecting the refund value for covered beverage containers;

  10. By July 1, 2031, and each July 1st thereafter, submit an annual report to the department that demonstrates compliance with the approved program plan and meets the criteria outlined in section 120 of this act;

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    1. By April 1, 2032, arrange for the completion of an analysis by an independent third party of the feasibility, including system processing and technological limitations, and associated costs of adding additional types of beverage containers to the program; and

    2. At the time of submission of the program plan for the second plan implementation period to the department consistent with subsection (7) of this section, a recycling refund producer responsibility organization may propose the inclusion of additional types of beverage containers based on the analysis in (a) of this subsection. A recycling refund producer responsibility organization must, in its plan, explain the rationale if it elects not to include any types of additional beverage containers that were determined to be feasible to include in the program in the analysis under (a) of this subsection;

  12. Maintain a registry of all types of covered beverage containers introduced and redeemed in this state by all registered producers;

  13. Set and collect the annual producer fees based on the criteria set forth in this chapter;

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    1. Set and collect fees on a frequency to be determined by the recycling refund producer responsibility organization from each member producer that must:

      1. Vary based on the total amount of covered beverage containers each producer introduces into the state; and

      2. Reflect program costs for each covered beverage container type, net of commodity value for that material type when used as a recycled material, as well as allocated fixed costs that do not vary based on material type;

    2. After the first program plan, each recycling refund producer responsibility organization must consider incentivizing using materials and design attributes that reduce the environmental impacts and human health impacts of covered beverage containers.

  15. Accept the refund value from retail establishments for covered beverage containers sold for off-site consumption;

  16. Make periodic scheduled payments to each material recovery facility that complies with the reporting and quality standards criteria described in the program plan;

  17. Conduct audits, at the discretion of the recycling refund producer responsibility organization or at the request of the department, no more than quarterly of material recovery facilities to assess data accuracy of covered beverage containers reported by material recovery facilities to a recycling refund producer responsibility organization. Audits must be requested by a recycling refund producer responsibility organization or the department and conducted at the recycling refund producer responsibility organization's expense;

  18. Ensure that producers operating under a recycling refund program plan administered by a recycling refund producer responsibility organization comply with the requirements of the recycling refund program plan and with this chapter;

  19. Consider and respond in writing to comments received from the recycling refund advisory council;

  20. Maintain a website that includes:

    1. A searchable database of current redemption sites;

    2. A list of all covered beverage container brands participating in the recycling refund producer responsibility organization program; and

    3. Consumer education materials about the recycling refund program;

  21. 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;

  22. Notify the department if fraudulent redemption is identified;

  23. Ensure timely compensation, maintenance, and operational costs to entities that are leasing space for redemption sites; and

  24. Comply with all other applicable requirements of this chapter.

Section 105

The department must implement, administer, and enforce this chapter and may adopt rules as necessary for those purposes. In implementing this chapter, the department has the following responsibilities:

  1. By August 1, 2026, notify the paper and packaging producer responsibility organization of the one-time payment owed to reimburse the department for its estimated costs to implement, administer, and enforce this chapter through May 1, 2027. The paper and packaging producer responsibility organization must transfer these funds to the department no later than September 1, 2026.

  2. By March 15, 2027, accept the registration of recycling refund producer responsibility organizations. If registrations for more than one recycling refund producer responsibility organization, other than individual producers registering as recycling refund producer responsibility organizations, are submitted to the department, the department must determine which proposed recycling refund producer responsibility organization can most effectively implement this chapter until the first approved plan period ends. Until the conclusion of the initial plan implementation period, producers of covered beverage containers that do not register as recycling refund producer responsibility organizations must join the recycling refund producer responsibility organization whose registration is approved by the department. This limitation only applies for the purposes of program development and the initial plan implementation period. For purposes of plan implementation after the first plan approved by the department expires, the department may allow registration of more than one recycling refund producer responsibility organization;

  3. Determine a registration fee to be paid by each recycling refund producer responsibility organization:

    1. On March 31, 2027, for a one-time payment sufficient to cover department costs to implement this chapter from the effective date of this section until June 30, 2028; and

    2. On March 31, 2028, and every March 31st thereafter, an annual registration fee sufficient to cover the department's estimated costs to implement, administer, and enforce this chapter for the coming fiscal year;

  4. By August 1, 2027, appoint the initial membership of the recycling refund advisory council, as required under section 109 of this act;

  5. Provide administrative and operating support to the recycling refund advisory council, as required under section 109 of this act;

  6. Consider and respond in writing to all written comments received from the recycling refund advisory council;

  7. Within 120 days of receipt, review and approve, deny, or request additional information for draft recycling refund program plans and coordination plans required under sections 107 and 108 of this act respectively, and:

    1. The department must post the draft plans or plan amendments on the department's website and allow public comment for no less than 45 days before approving, denying, or requesting additional information on the draft plan or amendment;

    2. 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 107 of this act. The recycling refund producer responsibility organization has 60 days from the date that the rejection or request for additional information is received to submit to the department a revised plan or any additional information necessary for the department's approval. Within 60 days of receipt, the department must review and approve, approve with conditions, deny, or request additional information for the revised draft plan or revised draft amendment, including a revised draft coordination plan under section 108 of this act. The department may approve the second revision submitted by the recycling refund producer responsibility organization with additional conditions the recycling refund producer responsibility organization must implement;

    3. Upon recommendation of the recycling refund advisory council, or upon the department's initiative, the department may require an amendment to the plan if the department determines that an amendment is necessary to ensure that the recycling refund producer responsibility organization maintains compliance with the requirements of this chapter; and

    4. Prior to approving the draft program plan, the department must review the convenience standards and proposed network of redemption sites provided in the plan;

  8. Review annual reports and:

    1. Make annual reports available for public review and comment for at least 30 days;

    2. Review within 120 days of receipt of a complete annual report; and

    3. Determine whether an annual report meets the requirements of this chapter, considering comments received under (a) of this subsection, and notify the recycling refund producer responsibility organization of the approval or reasons for denial. The recycling refund producer responsibility organization must submit a revised annual report within 60 days after receipt of the denial letter;

  9. Establish a public website that includes:

    1. The most recent registration materials submitted by the recycling refund producer responsibility organization;

    2. Any plan or amendment submitted by the recycling refund producer responsibility organization that is in draft form during a public comment period; and

    3. The most recent lists of covered beverage containers developed by the recycling refund producer responsibility organization and information about any material exclusions as described in section 107(2) of this act.

Section 106

  1. The recycling refund producer responsibility organization must propose a quantitative convenience standard in its program plan for department approval, that is based on a combination of travel time, distance, and other measurable criteria for redemption of covered beverage containers in the recycling refund program plan.

  2. The convenience standard proposed by the organization must ensure:

    1. Proximity to retail establishments associated with a majority of recycling refund covered materials sales in an area;

    2. Access in rural counties does not require additional vehicle miles traveled;

    3. Access is accessible and convenient for individuals relying on public transit or nonmotorized forms of transportation; and

    4. Reasonable opportunities are provided for individuals to receive immediate refunds for returns of covered beverage containers.

  3. A recycling refund producer responsibility organization must demonstrate how the proposed convenience standard ensures a network of redemption sites that meets or exceeds the recommendations of the deposit return system study conducted under RCW 70A.208.240. If the proposed convenience standard is not consistent with the recommendations of the study under RCW 70A.208.240, a recycling refund producer responsibility organization must justify any differences and explain how the proposed convenience standard will maximize equity, convenience, and accessibility for all individuals.

  4. In evaluating the proposed convenience standard and network of redemption sites proposed in a recycling refund producer responsibility organization plan, the department must consider whether the proposal:

    1. Is consistent with the requirements of subsections (2) and (3) of this section;

    2. Ensures all consumers who pay a refund value have convenient opportunities to redeem their full refund for covered beverage containers;

    3. 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 redemption options, and contracted redemption pick-up operators;

    4. Accounts for the total population, population density, sales of covered beverage containers in regions of the state, and proximity to centers of beverage sales business activity; and

    5. Incorporates a broad range of entities that may opt to serve as a redemption location including, but not limited to, municipal facilities, public spaces, institutions, schools, institutions of higher education, nonprofit organizations, retailers, religious and charitable organizations, sporting events, and waste management facilities.

Section 107

Each recycling refund program plan submitted to the department must contain the following:

  1. A proposed list of the types and sizes of covered beverage containers that will be included in the recycling refund program, along with justification for the exclusion of any container types or sizes;

  2. A description of how the recycling refund producer responsibility organization will prevent fraudulent redemption of covered beverage containers, including proposed criteria for excluding certain materials or container types from refund eligibility. These criteria may include contamination, damage, or indicators of out-of-state origin, and shall be subject to departmental review and approval;

  3. A description of how the recycling refund producer responsibility organization will meet performance targets described in section 119 of this act. In each plan submitted by a recycling refund producer responsibility organization applicable after the initial five-year plan implementation period under this chapter, the recycling refund producer responsibility organization must include a description of the proposed redemption, recycling, reuse, and other performance targets, and deadlines to achieve these targets, consistent with the requirements of section 119 of this act;

  4. How the performance targets will be measured;

  5. How the program will facilitate the expansion of reuse systems and, for a program plan applicable to the first five years of the program under this chapter, the proposed reuse rate targets and deadlines for achieving those targets consistent with section 119 of this act. This must include a description of how the proposed reuse rate targets meet the recommended targets from the "Washington Recycle, Reuse, and Source Reduction Target Study and Community Input Process" report department of ecology publication 23-07-060 dated December 2023. If the proposed reuse rate targets deviate from the targets recommended in the report, the recycling refund producer responsibility organization must justify that deviation and propose alternative reuse rate targets;

  6. How the program will incentivize recyclability improvements in the design of covered beverage containers;

  7. A description of the following elements of program design related to the convenience of the program's collection system to consumers:

    1. The number and distribution of proposed express and full-service redemption sites and any other redemption opportunities to be provided by the program, along with the convenience standards used as the basis for the proposal and an analysis demonstrating how the proposed convenience standards and network of redemption sites meet the requirements in section 106 of this act;

    2. How the program will conduct education and outreach and provide convenient redemption sites to socially vulnerable populations;

    3. How the redemption network will be convenient and available to geographically diverse populations and to those that redeem relatively large amounts of covered beverage containers;

    4. What, if any, alternative access redemption options may be implemented or contracted redemption pick-up operators may be utilized to increase convenience; and

    5. How the recycling refund producer responsibility organization will either directly or through partnerships with local service providers, government entities, or nonprofit organizations organized under section 501(c)(3) of the federal internal revenue code offer support services to socially vulnerable populations;

  8. How the program will conduct statewide education and outreach and assess the effectiveness of that education and outreach;

  9. Descriptions of a process to develop recommendations regarding the effectiveness of the plan and a timeline for implementing the findings of those recommendations;

  10. A description of how the recycling refund producer responsibility organization will set and charge producer fees for membership, which will take effect upon approval of the plan;

  11. A description of how the plan requires that any surplus of unredeemed refund values generated from the funding mechanism that exceed a reserve greater than the most recent year's operating expenditures be put back into the program to increase and improve program services, improve reuse opportunities, or reduce the cost of the program, consistent with the requirements of section 117 of this act;

  12. A description of how the recycling refund producer responsibility organization will establish partnerships with nonprofit organizations, including:

    1. The methodology behind determining a per-container refund value premium for large volumes of covered beverage containers 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, socially vulnerable populations, or overburdened communities;

    2. The per-container refund value premium approved nonprofit organizations are eligible for under the program;

    3. A process for annually reporting to the department the names, locations, return volume, and any other services provided through the nonprofit partnership;

    4. Locations of nonprofit partnership drop sites; and

    5. Any program rules associated with the nonprofit redemption program;

  13. A description of a process and methodology for incentivizing the recovery of covered beverage containers from material recovery facilities to the recycling refund producer responsibility organization, including:

    1. Quality standards for bales or equivalent units of commodities of covered beverage containers sorted by a material recovery facility, including a methodology for determining the number of covered beverage containers in bales or equivalent units of commodities; and

    2. A methodology and schedule of incentive payments for bales or equivalent units of commodities of covered beverage containers that meet the quality standards in (a) of this subsection. The incentive payments under this subsection are a requirement separate from and in addition to the reciprocal compensation mechanism required under the coordination plan in section 108 of this act;

  14. A description of how the recycling refund producer responsibility organization could establish contracts with distributors for collection of covered beverage containers, provided that nothing in this chapter requires that a distributor enter a collection contract with a recycling refund producer responsibility organization;

  15. A methodology and proposed compensation for service providers and redemption sites, including retail establishments, on-site consumption establishments, and rural and frontier county redemption opportunities. Compensation must reflect consultation with existing service providers, retail establishments, on-site consumption establishments, and rural and frontier counties. A recycling refund producer responsibility organization must propose additional assistance for on-site consumption establishments under 10,000 square feet to comply with this chapter.

Section 108

  1. Each paper and packaging producer responsibility organization and each 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, each paper and packaging producer responsibility organization and each recycling refund producer responsibility organization must identify actions to jointly optimize infrastructure for recycling collection and reuse programs for both programs.

  2. The coordination plan between each producer responsibility organization for paper and packaging and each recycling refund producer responsibility organization must contain the following:

    1. Education and outreach activities to ensure consistent messaging to consumers;

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      1. A description of a reciprocal compensation mechanism such that the 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 refund producer responsibility organization for covered materials under chapter 70A.208 RCW other than covered beverage containers managed through the recycling refund program;

      2. A methodology to determine the percentage of covered beverage containers by material type processed through material recovery facilities that is attributable to covered beverage containers, to ensure that producer fees accurately reflect the share of beverage container material managed through the program implemented under chapter 70A.208 RCW;

      3. A temporary reimbursement schedule, to be proposed by the producer responsibility organizations, to offset any rate impacts experienced by government entities due to the reduction of covered beverage containers sorted through the municipal recycling stream. This schedule shall remain in effect until February 15, 2032;

    3. Mechanisms to evaluate packages and formats managed by each program and consider opportunities for adding and removing packages from one program to the other;

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

  3. Each recycling refund producer responsibility organization must submit the coordination plan developed under this section to the department for review and approval on the same timelines and following the same procedures for the department's review of the recycling refund program plan under section 107 of this act.

Section 109

  1. By August 1, 2027, the department must establish a recycling refund advisory council to review activities conducted by each registered recycling refund producer responsibility organization. The department must appoint the membership of the recycling refund advisory council.

  2. The membership of the recycling refund advisory council must consist of the following:

    1. One member representing municipal government;

    2. One member representing county government;

    3. One member representing a packaging manufacturer or trade association representing the glass beverage container sector. The packaging manufacturer of the trade association must not be a producer;

    4. One member representing a packaging manufacturer or trade association that is not a producer that represents the plastic covered beverage container sector;

    5. One member representing a packaging manufacturer or trade association that is not a producer that represents the metal covered beverage container sector;

    6. One member representing an environmental nonprofit organization;

    7. One member representing an organization that represents socially vulnerable populations;

    8. One member that is a representative of an organization that represents individual service providers;

      1. Two members representing federally recognized tribes located in Washington state;
    9. One member representing a trade association for the retail sector;

    10. One member representing a trade association for the hospitality sector;

    11. One member representing the recycling processing sector;

    12. One member who is a canner or represents a canner organization;

    13. One member representing the small retail sector;

    14. One member representing rural communities; and

    15. One nonvoting member representing the department.

  3. The recycling refund advisory council has the following duties:

    1. Review each recycling refund program plan and provide comments to recycling refund producer responsibility organizations and the department;

    2. Review program audits;

    3. Review annual reports and provide comments to each recycling refund producer responsibility organization and the department; and

    4. Ensure that each recycling refund producer responsibility organization and the department are considering a broad range of perspectives in developing the recycling refund program plans and in implementing the program.

  4. The equity subcommittee created in RCW 70A.208.050 must make recommendations to the advisory council and fulfill other duties with respect to this chapter, as described in RCW 70A.208.050.

  5. The department shall provide administrative and operating support to the recycling refund advisory council, including compensation in accordance with subsection (7) of this section, and may contract with a third-party facilitator to assist in administering the activities of the recycling refund advisory council.

  6. The responsibilities of the recycling refund advisory council under this chapter apply through the conclusion of the first five-year plan implementation period, up to and including the review of plans submitted for purposes of the second implementation period. The department may reappoint an advisory council under this section after the first plan implementation as necessary to ensure the achievement of the goals of this chapter.

  7. Recycling refund advisory councilmembers that are representatives of tribes, tribal or indigenous services organizations, community-based organizations, or environmental nonprofit organizations must, if requested, be compensated and reimbursed in accordance with RCW 43.03.050, 43.03.060, and 43.03.220.

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    1. A majority of the voting members of the recycling refund advisory council constitutes a quorum. If there is a vacancy in the membership of the recycling refund advisory council, a majority of the remaining voting members of the council constitutes a quorum.

    2. Action by the advisory council requires a quorum and a majority of those present and voting.

    3. Meetings of the advisory council must comply with chapter 42.30 RCW, the open public meetings act.

Section 110

Every covered beverage container sold or offered for sale for off-site consumption in the state has a refund value of 10 cents, by January 1, 2030, or six months after plan approval, whichever is later. The charge for the refund value of covered beverage containers must be separately stated on a receipt, invoice, or similar billing document given to the consumer. The refund value may not be embedded into the price of the covered beverage container. The refund value applies to the covered beverage containers of all producers. Beverage containers must have a visible brand and a universal product code to be eligible for a refund value.

Section 111

  1. Each redemption site must collect all covered beverage containers subject to the recycling refund value except as excluded by section 116 of this act. Any location serving as a redemption site shall be fairly compensated through a mutual agreement by the appropriate recycling refund producer responsibility organization for providing physical space for redemption and associated maintenance and operational costs of the redemption sites, for the duration of the approved program plan.

  2. Government entities, nonprofit organizations, individuals, and private organizations are eligible to host redemption sites.

  3. A 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.

Section 112

  1. Each recycling refund producer responsibility organization must, at its own cost, provide express redemption sites that allow consumers to return covered beverage containers. These sites do not provide cash handling on-site, rather upon return, containers may be transported to recycling refund processing facilities if needed, and refunds must be credited to the consumer's virtual account once the covered beverage containers are counted. If a bag-drop program is deployed, each recycling refund producer responsibility organization must credit the cost of any required bag purchase back to the consumer's virtual account when the bag is returned and processed through the recycling refund system.

  2. Express redemption sites must be located:

    1. A convenient distance from a retail establishment;

    2. At a publicly owned facility;

    3. At a privately owned facility; or

    4. At a location otherwise convenient for consumers.

  3. Express redemption sites may be located:

    1. On the property or in the parking lot of a retail establishment;

    2. On the property or parking lot of a privately owned facility;

    3. On the property or parking lot of a publicly owned facility;

    4. In a public right-of-way; or

    5. At any other location convenient for individuals to redeem.

  4. 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.

  5. If the recycling refund producer responsibility organization utilizes standard bags for the bag-drop program, the recycling refund producer responsibility organization must:

    1. Ensure that the standard bags have a minimum of 50 percent postconsumer recycled content;

    2. Demonstrate, upon request of the department, that the waste film from the standard bag production or from retired standard bags is being recycled at responsible end markets; and

    3. Include instructions on how the bag should be utilized and recycled through an express redemption site and any applicable redemption.

Section 113

  1. A recycling refund organization must ensure the establishment of a sufficient number of full-service redemption sites, either directly or through partnerships with nonprofit organizations, to meet the convenience standards outlined in the approved recycling refund program plan as specified in this chapter. These sites must allow individuals to return covered beverage containers and receive immediate refunds for their returns. The recycling refund producer responsibility organization may also, either directly or through partnerships with local service providers or government entities, offer support services to socially vulnerable populations.

  2. Each recycling refund producer responsibility organization must administer a program to 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, socially vulnerable populations, or overburdened communities. Each recycling refund producer responsibility organization must provide pick-up service for containers collected under this section.

  3. To limit fraud and ensure that services are deployed where they are most needed, each recycling refund producer responsibility organization may approve or deny partnerships described in this section at its sole discretion.

  4. Locations sited for the purpose of fulfilling the requirements of this section are considered small retail locations suitable for mixed-use zoning to maximize convenience and redemption access.

Section 114

Each frontier or rural county, as defined in RCW 43.160.020, must make space available to each recycling refund producer responsibility organization for purposes of siting a redemption site at each transfer station and drop box facility, as those terms are defined in rules adopted by the department to implement chapter 70A.205 RCW, that is owned or operated by the county. Each recycling refund producer responsibility organization must provide an express redemption site or full-service redemption site at each location offered under this section unless infeasible, in which case the recycling refund producer responsibility organization must provide an express redemption site elsewhere. Each recycling refund producer responsibility organization must provide compensation for each county location provided under this section as described in the program plan, and must assume all operational and maintenance costs for the redemption site.

Section 115

  1. Each retail establishment must charge and remit the refund value of covered beverage containers to the appropriate recycling refund producer responsibility organization. The refund value shall be separately stated on a receipt, invoice, or similar billing document given to the consumer. The retail establishment must submit the following to each recycling refund producer responsibility organization:

    1. The remitted refund value for covered beverage containers introduced; and

    2. Necessary information related to point-of-sale transactions for covered beverage containers.

  2. A retail establishment larger than 20,000 square feet that sells covered beverage containers must sell the standard bags for the bag-drop program offered as part of recycling refund programs at the price established by each recycling refund producer responsibility organization.

  3. A retail establishment may choose to host an express redemption site on the property or in their parking lot through mutual agreement with a recycling refund producer responsibility organization who will provide compensation and assume lease costs, and all operational and maintenance costs for the redemption site, as described in the program plan. Nothing in this chapter shall be interpreted to create a legal obligation on the part of a retail establishment to either accept a returned covered beverage container or allow a redemption site to be sited at a retail establishment.

  4. A retail establishment that chooses to host an express redemption site is eligible to have a self-serve kiosk, located at the retail establishment at no charge by the appropriate 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. Each recycling refund producer responsibility organization shall reimburse retailers for the value of valid vouchers redeemed by consumers.

  6. Retail establishments may offer a voucher redemption option for recycling refund values to be used as store credit. Under this program, retail establishments may offer individuals an additional bonus above the standard refund value when redeemed deposit refunds are applied toward purchases within the store.

Section 116

  1. Each recycling refund producer responsibility organization shall facilitate the collection of covered beverage containers from on-site establishments. Each 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 must charge and remit the refund value of covered beverage containers sold for off-site consumption to the appropriate recycling refund producer responsibility organization. The refund value shall be separately stated on a receipt, invoice, or similar billing document given to the consumer. The on-site consumption establishment must submit the following to the appropriate recycling refund producer responsibility organization:

    1. The refund value for covered beverage containers sold for off-site consumption;

    2. Information related to point-of-sale transactions for covered beverage containers sold for off-site consumption.

  3. The on-site consumption establishment must receive compensation from the appropriate recycling refund producer responsibility organization for costs associated with program implementation including, but not limited to, support for operational systems, facilitation of refund value transactions, and the submission of relevant sales data for covered beverage containers, as described in the program plan.

  4. On-site consumption establishments may choose to host an express redemption site on their property through mutual agreement with a recycling refund producer responsibility organization which will provide compensation and assume lease costs, and all operational and maintenance costs for the site, as described in the program plan.

  5. Transactions involving the sale of covered beverage containers from retail establishments to licensed on-site consumption establishments for resale shall be exempt from the collection and remittance of the refund value if the following conditions are met:

    1. The purchaser is an on-site consumption establishment business with a valid Washington state business license and/or reseller's permit, which identifies them as a licensed reseller for the purposes of purchasing covered beverage containers for resale or distribution in a hospitality setting;

    2. The covered beverage containers are purchased by the on-site consumption establishment in bulk, such as flats or large cases, for resale or use in food or beverage service to customers in an on-site consumption establishment setting; and

    3. The covered beverage containers are not subject to a refund when they are transferred from the retail establishment to the on-site consumption establishment, provided the transaction is documented via invoice or receipt, indicating that the transaction is for resale or use in hospitality services.

  6. On-site consumption establishments that sell beverages exclusively for on-premises consumption and do not package beverages for takeout or delivery shall not be responsible for collecting or remitting the refund value.

  7. An online food delivery network company that facilitates the sale and delivery of beverages in covered beverage containers from an on-site consumption establishment to a consumer shall be responsible for remitting the applicable refund value to the appropriate recycling refund producer responsibility organization.

Section 117

Each recycling refund producer responsibility organization shall only use any refund value that is not redeemed by the consumer for any of the following purposes:

  1. Education and outreach activities to raise awareness about the program and encourage redemption activity;

  2. Improving redemption rates;

  3. Increasing the number of redemption sites or technological innovations at redemption sites that increase convenience;

  4. Improve the reuseable infrastructure and operations;

  5. Increase the reuse rate;

  6. Increasing the number of redemption sites in socially vulnerable populations and overburdened communities; or

  7. Other activities that are described in the recycling refund program plan that directly contribute to achieving the performance requirements described in section 119 of this act and the convenience standards described in section 106 of this act.

Section 118

  1. Material recovery facilities must share incentive payments received under section 107(12) of this act with service providers consistent with their bundled services or processing contracts or other agreements or regulations, as applicable, so that service 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-off facilities, as determined under an agreement between the material recovery facility and the service provider.

  2. Service providers that receive payments under subsection (1) of this section must display the service provider's price, minus the payment from the recycling refund producer responsibility organization, when invoicing customers and, in delivering curbside collection services, pass on the applicable portion of the payment, through solid waste rate reductions or credits, to all customers receiving curbside collection services eligible for reimbursement.

Section 119

Recycling refund producer responsibility organizations must achieve, at minimum, the following performance requirements:

  1. By the end of year two of plan implementation, a redemption rate of greater than 65 percent aggregated for all covered beverage containers;

  2. By the end of year two of plan implementation, a reuseable container redemption rate of greater than 65 percent aggregated for all reusable covered beverage containers;

  3. By the end of year five of plan implementation, a redemption rate of greater than 80 percent aggregated for all covered beverage containers;

  4. By the end of year five of plan implementation, a reuseable container redemption rate of greater than 80 percent aggregated for all reusable covered beverage containers;

  5. Established reuse rates as outlined in the program plan that increase each year after the first plan period; and

  6. Beginning with the second plan implementation period under this chapter, redemption rate targets, reusable container redemption rate targets, reuse rate targets, and any other performance targets established in an approved program plan that demonstrate continuous improvement in reducing environmental impacts and human health impacts of covered beverage containers over time.

Section 120

  1. Beginning June 30, 2031, and each June 30th thereafter, each recycling refund producer responsibility organization must submit an annual report to the department for the preceding calendar year that contains the following:

    1. A list of registered producers participating in the program and covered beverage containers supplied into the state;

    2. The total gross unit sales volume of beverages in covered beverage containers introduced by its registered producers in Washington during the preceding year, including those for on-site consumption;

    3. Covered beverage containers redeemed, reused, and recycled through the program, by material type;

    4. Redemption rates of the following type of covered beverage containers: (i) Single-use covered beverage containers; and (ii) reusable covered beverage containers;

    5. Redemption sites and processing facilities participating in the recycling refund program;

    6. Verification of covered beverage containers handled at responsible end markets;

    7. An evaluation of the convenience of the program as described under section 106 of this act and under the program plan providing relevant documentation and verification, including a demonstration that convenience standards as required under this chapter have been achieved or exceeded;

    8. An additional convenience evaluation based on regionalized sales and redemption data of whether redemption options disproportionately impact overburdened communities or socially vulnerable populations;

      1. An evaluation of progress made toward the performance targets reported in the same units used to establish producer fees under section 103 of this act and reported statewide, for each county, and for each city with a population greater than 1.5 percent of the state population, including the amount of recycling refund covered beverage containers successfully redeemed, reused, recycled, and disposed of by recycling refund covered materials type and the type of redemption site used; and
    9. Results of consumer awareness and behavior education and outreach effectiveness surveys.

  2. Each recycling refund producer responsibility organization must include a report on performance, funding, and enforcement activities, including:

    1. The total cost to implement the program and a detailed description of program expenditures by category, including:

      1. The total amount of producer fees collected, unclaimed refunds held, and scrap value realized on the sale of recycled commodities;

      2. A description of infrastructure investments made;

      3. A description of how unclaimed refunds were invested, consistent with section 117 of this act;

      4. A breakdown of reimbursements to redemption sites and service providers in the state; and

    2. Upon periodic request by the department, a review by an independent financial auditor of the use of unredeemed refund values to validate the use of those public funds for the program. In a report to the department, the independent auditor must verify the unredeemed refund values and producer fees used to cover the costs of the program, and a copy of a financial audit of program operations conducted by an independent auditor;

    3. 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

    4. Recommendations for additions or removals of covered beverage containers and beverages as prescribed under section 104 of this act.

  3. All data reported by each 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. A recycling refund producer responsibility organization is responsible for all costs associated with the data audit. Auditable data shall only include data held by the recycling refund producer responsibility organization. Auditing of any data inputs to a recycling refund producer responsibility organization is the responsibility of the recycling refund producer responsibility organization.

  4. A recycling refund producer responsibility organization that submits information or records to the department under this chapter may request that a portion of the information or records be made available only for the confidential use of the department, the director, or the appropriate division of the department. The director of 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.

Section 121

A 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 120 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. An amendment filed under this section must be reviewed by the recycling refund advisory council and is subject to review and approval by the department.

Section 122

Beginning April 30, 2031, 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:

  1. Amount of recycling refund covered materials accepted by the material recovery facility or processor, and the location of generation;

  2. Amount of material sold to market, by commodity type;

  3. Amount of residue or waste that was generated;

  4. End markets where materials were marketed, by region and type of end use; and

  5. Verification that end markets are responsible and compliant with program requirements.

Section 123

The activities authorized by this chapter require collaboration among producers. These activities will enable the waste reduction, collection, and recycling of covered beverage containers in Washington and are therefore in the best interest of the public. The benefits of collaboration, together with active state supervision, outweigh potential adverse impacts. Therefore, the legislature exempts from state antitrust laws, and provides immunity through the state action doctrine from federal antitrust laws, activities that are undertaken in compliance with and pursuant to this chapter, including activities that are reviewed or approved by the department, that might otherwise be constrained by such laws. The legislature does not intend and does not authorize any person or entity to engage in activities not provided for by this chapter, and the legislature neither exempts nor provides immunity for such activities.

Section 124

  1. The department may administratively impose a civil penalty of up to $1,000 per violation per day on any person who violates this chapter and up to $10,000 per violation per day for the second and each subsequent violation.

  2. The department may apply the following additional enforcement provisions to a producer or a recycling refund producer responsibility organization:

    1. Issue a corrective action order to a producer or a recycling refund producer responsibility organization;

    2. Issue an order to a recycling refund producer responsibility organization to provide for the continued implementation of the program in the absence of an approved plan;

    3. Revoke a recycling refund producer responsibility organization's plan approval and require implementation of the contingency plan;

    4. Require a recycling refund producer responsibility organization to revise or resubmit a plan within a specified time frame; or

    5. Require additional reporting related to the area of noncompliance.

  3. A person may not introduce a covered beverage container of a producer that is not participating in a registered recycling refund producer responsibility organization.

    1. The department shall serve, or send with delivery confirmation, a written warning explaining the violation to a person distributing or selling covered products of a producer that is not in compliance with this chapter.

    2. The department may assess a penalty on a person that continues to introduce covered beverage containers of a producer that is in violation of this chapter 60 days after receipt of the written warning under this subsection. The amount of the penalty that the department may assess under this subsection is twice the value of the covered beverage containers introduced in violation of this chapter or $500, whichever is greater. The department must waive the penalty upon verification that the person has discontinued the introduction of the covered beverage containers within 30 days of the date the penalty is assessed.

  4. Any person who incurs a penalty or receives an order may appeal the penalty or order to the pollution control hearings board.

  5. Penalties levied under this section must be deposited in the recycling enhancement account created in RCW 70A.245.100.

  6. Upon receipt of a request from the recycling refund advisory council, the department must consider the appropriateness of the use of enforcement authority authorized in this section.

Section 125

The recycling refund program account is created in the custody of the state treasurer. All receipts received by the department under this chapter must be deposited in the account. Expenditures from the account may be used by the department only for implementing, administering, and enforcing the requirements of this chapter. Only the director of the department may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. The department must use the portion of the paper and packaging producer responsibility organization one-time payment received in 2026 for the costs of the department to reimburse whichever state account was used to cover the costs of the department prior to the payment of the paper and packaging producer responsibility organization fee in September 2026.

Section 201

  1. The legislature finds that, as of 2025:

    1. Washington's statewide waste recovery rate has been generally static since 2011 and Washington is not meeting the statewide goal of 50 percent recycling established in 1989; and

    2. Many residents, particularly those who live in rural areas and in multifamily residences, do not have access to convenient or affordable curbside recycling, and must rely on taking recyclables to drop box locations, and that extended producer responsibility programs could make curbside recycling available and affordable for most people in the state.

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    1. It is the intent of the legislature to require extended producer responsibility programs for consumer packaging and paper products to be implemented in a manner that involves producers in material management from design concept to end of life.

    2. It is intended that these programs be responsibly planned and funded in a manner that minimizes negative impacts to the environment and minimizes risks to public health and worker health and safety. It is also intended that these programs build and expand on the existing waste and recycling system's infrastructure and reliance on the authority of local governments and the utilities and transportation commission in solid waste management.

    3. It is the intent of the legislature that Washington should maintain the successful public-private partnership between state, local government, and solid waste and recycling service providers. The legislature does not intend to diminish or displace the primary role of the utilities and transportation commission and local governments in regulating or contracting directly with service providers for the curbside collection of residential recyclables. Local governments maintain their existing authority to collect, contract for collection with solid waste and recycling service providers, or defer to solid waste collection services regulated by the utilities and transportation commission.

  3. It is the intent of the legislature for the 2029 legislature to consider the draft plans submitted by producer responsibility organizations to the department of ecology in October 2028, prior to the approval of such plans by the department of ecology taking effect. It is the intent of the legislature for the 2029 legislature to consider the draft plans submitted in October 2028 and the independent analysis carried out by January 2029, of those submitted draft plans, in order for the 2029 legislature to determine whether to amend the requirements of this chapter, to make other recycling policy changes , or to allow that the proposed plan and program under this chapter be implemented in full.

Section 202

  1. The advisory council is established to review all activities conducted by producer responsibility organizations under this chapter and to advise the department and producer responsibility organizations regarding the implementation of this chapter.

  2. By January 1, 2026, the department must establish and appoint the initial membership of the advisory council. The membership of the advisory council must consist of the following:

    1. Two members representing manufacturers of covered materials or a statewide or national trade association representing those manufacturers;

    2. Two members representing recycling facilities that manage covered materials;

    3. One member representing a solid waste collection company or a statewide association representing solid waste collection companies;

    4. One member representing retailers of covered materials or a statewide trade association representing those retailers;

    5. One member representing a statewide nonprofit environmental organization;

    6. One member representing a community-based nonprofit environmental justice organization;

    7. One member representing entities that own or operate a material recovery facility;

    8. One member representing entities that own or operate a waste facility that accepts and processes compostable materials for composting or a statewide trade association that represents those facilities;

      1. One member representing an entity that develops or offers for sale covered materials that are designed for reuse or refill and maintained through a reuse or refill system or infrastructure or a statewide or national trade association that represents those entities;
    9. Three members representing government entities, with at least one member representing counties;

    10. One member representing tribal or indigenous solid waste services organizations;

    11. Two members representing other interested parties or additional members of interests represented under (a) through (k) of this subsection, as determined by the department, prioritizing representation of diverse communities, including marginalized groups, to ensure the activities carried out under this chapter reflect their perspectives;

    12. One nonvoting member representing each registered producer responsibility organization; and

    13. One nonvoting member representing the department.

  3. The department must appoint an equity subcommittee to the advisory council and to the advisory council established in chapter 70A.--- RCW (the new chapter created in section 402 of this act) comprised of six representatives from overburdened communities or socially vulnerable populations, including representatives from three geographic locations in eastern Washington representing a small, medium, and large community. The equity subcommittee is responsible for informing and making recommendations to the advisory council established under this chapter and the advisory council established in chapter 70A.--- RCW (the new chapter created in section 402 of this act), the department, recycling refund producer responsibility organizations under chapter 70A.--- RCW (the new chapter created in section 402 of this act), and producer responsibility organizations regarding the impacts of activities under this chapter and chapter 70A.--- RCW (the new chapter created in section 402 of this act) on socially vulnerable populations and overburdened communities, including the accessibility of covered services for covered materials to socially vulnerable populations and overburdened communities and the accessibility to express and full service redemption centers under chapter 70A.--- RCW (the new chapter created in section 402 of this act) to socially vulnerable populations and overburdened communities. At a minimum, the equity subcommittee must review and, as appropriate, provide information or make recommendations regarding needs assessments, submitted plans under this chapter and chapter 70A.--- RCW (the new chapter created in section 402 of this act), and submitted annual reports under this chapter and chapter 70A.--- RCW (the new chapter created in section 402 of this act). The department must appoint the members of the equity subcommittee based on solicited input received from the commission on African American affairs, the commission on Hispanic affairs, the commission on Asian Pacific American affairs, the LGBTQ commission, and the women's commission. Beginning in calendar year 2027, the recycling refund producer responsibility organization is responsible for reimbursement of one-half of the department's costs associated with the equity subcommittee under this subsection.

  4. In appointing members, the department:

    1. Is prohibited from appointing members who are state legislators or registered lobbyists;

    2. Is prohibited from appointing members who are employees of producers required to be members of a producer responsibility organization under this chapter; and

    3. Must endeavor to appoint members from all regions of the state.

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    1. The member appointed to represent the department serves at the pleasure of the department. All other members serve for a term of four years, except that the initial term for nine of the initial appointees must be two years so that membership terms are staggered. Members may be reappointed but may not serve more than eight consecutive years.

    2. A member may be removed by the department at any time. The chair of the advisory council must inform the department of a member missing three consecutive meetings. After the second consecutive missed meeting, the chair of the advisory council must notify the member in writing that the member may be removed for missing the next meeting. If there is a vacancy on the advisory council for any reason, the department shall make an appointment to become effective immediately for the unexpired term.

  6. Advisory councilmembers that are representatives of tribes, tribal or indigenous services organizations, community-based organizations, or environmental nonprofit organizations must, if requested, be compensated and reimbursed in accordance with RCW 43.03.050, 43.03.060, and 43.03.220.

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    1. A majority of the voting members of the advisory council constitutes a quorum. If there is a vacancy in the membership of the advisory council, a majority of the remaining voting members of the council constitutes a quorum.

    2. Action by the advisory council requires a quorum and a majority of those present and voting. All members of the advisory council, except the member appointed to represent the department and the member appointed to represent the producer responsibility organization, are voting members of the council.

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    1. The advisory council must meet at least two times per year and may meet more frequently upon 10 days' written notice at the request of the chair or a majority of its members.

    2. Meetings of the advisory council must comply with chapter 42.30 RCW, the open public meetings act.

  9. At its initial meeting, and every two years thereafter, the advisory council must elect a chair and vice chair from among its members.

  10. The department shall provide administrative and operating support to the advisory council, including compensation in accordance with subsection (6) of this section, and may contract with a third-party facilitator to assist in administering the activities of the advisory council, including establishing a website or landing page on the department website.

  11. The department must assist the advisory council in developing policies and procedures governing the disclosure of actual or perceived conflicts of interest that advisory councilmembers may have as a result of their employment or financial holdings with respect to themselves or family members. Each advisory councilmember is responsible for reviewing the conflict-of-interest policies and procedures. An advisory councilmember must disclose any instance of actual or perceived conflicts of interest at each meeting of the advisory council at which recommendations regarding plans, programs, operations, or activities are made by the advisory council.

Section 203

A service provider receiving reimbursement or funding under an approved plan must:

  1. Provide covered services for covered materials included on the statewide collection lists, covered services for a refill system, or covered services for reusable covered materials, as applicable to the services offered by and service area of the service provider;

  2. Register annually with the department;

  3. Submit invoices to the producer responsibility organization for reimbursement for services rendered;

  4. Meet performance standards established in an approved plan;

  5. Ensure that covered materials are sent to responsible markets;

  6. Provide documentation to the producer responsibility organization of the amounts, covered material types, and volumes of covered materials by covered service method;

  7. Display the service provider's price, minus the reimbursement from the producer responsibility organization and any incentive payments from the recycling refund producer responsibility organization under section 107(12) of this act, when invoicing customers and, in delivering curbside collection services, pass on the applicable portion of the reimbursement and incentive payment, through solid waste rate reductions or credits, to all customers receiving curbside collection services eligible for reimbursement; and

  8. Comply with all other applicable requirements of this chapter.

Section 204

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    1. By January 1, 2028, the department must contract with an independent consultant to carry out a one-time ex-ante analysis of each draft plan submitted to the department by October 1, 2028, that addresses:

      1. The impact of the proposed program on the consumer prices of covered materials and items sold with covered materials; and

      2. The impacts of the proposed program on environmental justice, as defined in RCW 70A.02.010, and on the availability and convenience of recycling, composting, and reuse services, including specific analysis of the availability and convenience of recycling, composting, and reuse services used by socially vulnerable populations and in overburdened communities

.

b. The analysis must be informed by input from stakeholders and informed by experience from other jurisdictions.

c. The analysis must be completed and submitted to the department by January 15, 2029.

d. The department's contract with the independent consultant must allow the consultant to begin its analysis prior to the submission of the draft plan on October 1, 2028. The department must require a producer responsibility organization to cooperate and share information with the independent consultant hired by the department to facilitate the consultant being able to complete its analysis in time to allow for consideration by the 2029 legislature.

e. The department must notify the appropriate committees of the legislature upon the completion of the analysis under this subsection (1).
  1. By September 1, 2038, the department must contract with an independent consultant to analyze the impacts of the initial seven years of program implementation and must submit a report summarizing the analysis to the appropriate committees of the legislature. The analysis must include the effects of the program on:

    1. Solid waste, composting, or recycling costs;

    2. Recycling rates, reuse rates, postconsumer recycled content rates, source reduction rates, and composting rates; and

    3. The availability and convenience of recycling, composting, and reuse services, including specific analysis of the availability and convenience of recycling, composting, and reuse services used by socially vulnerable populations.

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    1. The independent consultant, for purposes of the independent review of the program carried out under this section, may review:

      1. Information submitted to the department under RCW 70A.208.200; and

      2. Producer or producer responsibility organization data or information pertinent to the program.

    2. The independent consultant must treat confidential records in a manner consistent with the department's policy under RCW 70A.208.220.

  3. To the extent that sufficient state-level data is not available to complete the analyses required in subsection (2) of this section, the independent consultant may review data or studies from states with similar programs.

Section 205

  1. The department shall contract with an independent consultant to conduct two studies on the potential statewide impacts of a recycling refunds program, also known as a beverage container deposit return system, in Washington state. The studies must prioritize equity, accessibility, and community perspectives.

  2. The consultant, in coordination with the department, shall lead a community engagement process in at least three geographically diverse areas of the state with a high concentration of socially vulnerable or overburdened populations, as identified by the department consistent with RCW 70A.02.010. The results of this engagement process must be submitted to the legislature by January 1, 2027. The engagement process must:

    1. Solicit input on access to recycling and redemption services, local infrastructure needs, and community priorities related to convenience and equity;

    2. Assess consumer sentiment, awareness, and perceptions of a recycling refunds program, including perceived benefits, barriers to participation, and potential economic impacts, particularly for low-income households;

    3. Include:

      1. Community input sessions in overburdened communities;

      2. Outreach to local governments, tribal governments, environmental justice and equity organizations, producers, recycling system operators, and other relevant stakeholders; and

      3. Engagement with individuals and organizations concerned about the economic impacts of a recycling refunds program, particularly on low-income consumers; and

    4. Develop recommendations to ensure that a recycling refunds program is equitably accessible, convenient, and responsive to community needs across all regions of the state.

  3. In the same three regions required to be identified under subsection (2) of this section, the consultant shall evaluate and model what convenient access to redemption services would look like, with respect to the types of express and full-service redemption sites. The results of this engagement process must be submitted to the legislature by January 1, 2026. This analysis must at a minimum consider:

    1. The availability of suitable infrastructure for redemption services that include reusable packaging;

    2. Accessibility via public transportation;

    3. Colocation opportunities with existing waste or recycling facilities; and

    4. Strategies to reduce transportation burdens on residents in rural, remote, and underserved communities.

  4. The department shall submit the consultant's findings and recommendations to the appropriate committees of the house of representatives and the senate by January 1, 2026, for the study completed in subsection (3) of this section and January 1, 2027, for the study completed in subsection (2) of this section.

  5. Registered producer responsibility organizations under RCW 70A.208.030 are responsible for payment of the department's cost to complete these studies as part of the one-time payment due to the department on September 1, 2026, under RCW 70A.208.030(4). No later than 60 days after the initial deadline for registration with the department applicable to recycling refund producer responsibility organizations under chapter 70A.--- RCW (the new chapter created in section 402 of this act), each registered recycling refund producer responsibility organization must reimburse each producer responsibility organization that paid for the department's costs to complete these studies under this section.

Section 206

  1. The department must periodically assess the availability of, and methodology used by, the United States centers for disease control and the agency for toxic substances and disease registry's social vulnerability index, as compared to how it existed as of January 1, 2025.

  2. If the department determines that the social vulnerability index is no longer available in substantially the same form as it existed on January 1, 2025, the department must notify each registered producer responsibility organization that for purposes of the identification of socially vulnerable populations under this chapter and each recycling refund producer responsibility organization that for purposes of the identification of socially vulnerable populations under chapter 70A.--- RCW (the new chapter created in section 402 of this act), the department , producer responsibility organizations, and recycling refund producer responsibility organizations are no longer required to reference the United States centers for disease control and the agency for toxic substances and disease registry's social vulnerability index. Instead, the department, registered recycling refund producer responsibility organizations, and registered producer responsibility organizations must reference the alternative populations specified in subsection (3) of this section.

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    1. Until such time as a rule is adopted under (b) of this subsection, the department, registered recycling refund producer responsibility organizations, and registered producer responsibility organizations must, for purposes of identifying socially vulnerable populations, identify as socially vulnerable populations those communities ranked as an eight or higher on the environmental health disparities map developed under RCW 43.70.815.

    2. After making a determination under subsection (2) of this section, by rule the department may, but is not required to, adopt an alternative methodology for the identification of socially vulnerable populations to replace the reference to the United States centers for disease control and the agency for toxic substances and disease registry's social vulnerability index. A rule adopted under this subsection may, but is not required to, rely in whole or in part on the environmental health disparities map developed by the department of health under RCW 43.70.815.

Section 207

  1. Consistent with sections 105 and 108 of this act, each registered producer responsibility organization must submit a coordination plan that meets the requirements of chapter 70A.--- RCW (the new chapter created in section 402 of this act) to the department for approval.

  2. Consistent with section 105 of this act, each registered producer responsibility organization must transfer funds related to the start-up costs of the recycling refund producer responsibility organization program through May 1, 2027, under chapter 70A.--- RCW (the new chapter created in section 402 of this act) to the department no later than September 1, 2026. Each registered producer responsibility organization must be repaid by a recycling refund producer responsibility organization consistent with section 104 of this act.

  3. By December 1, 2027, the department must complete and publish on its website the feasibility analysis described in this section.

    1. The purpose of the feasibility analysis is to:

      1. Identify options to improve the convenience experienced by consumers with unwanted products or packaging covered by state product stewardship, extended producer responsibility, and similar takeback programs, by harmonizing or establishing a system of common or centralized takeback centers or depots for consumers; and

      2. Consider the viability, costs, and tradeoffs associated with each option that might lead to improved outcomes for consumers and improved end-of-life management outcomes for covered unwanted products.

    2. The department of ecology must deliver policy recommendations to the legislature by December 1, 2027.

  4. The department of ecology must consult with the department of health for purposes of considering the potential for integration of collection infrastructure under chapter 69.48 RCW with the collection infrastructure of other state programs.

  5. The feasibility analysis required under this section must:

    1. Be conducted by an independent third party selected by the department;

    2. Consider the following:

      1. Existing common collection infrastructure models used by other jurisdictions;

      2. Existing voluntary and contractually established collection infrastructure currently used to collect unwanted products and packaging in Washington; and

      3. Options to deploy curbside collection systems for the specialized collection of products;

    3. Include policy recommendations to the legislature to improve consumer convenience and improve environmental end-of-life management outcomes for any combination of products and packaging covered by extended producer responsibility programs, takeback programs, or product stewardship programs;

      1. The policy recommendations must consider:

(A) Beverage containers covered under chapter 70A.--- RCW (the new chapter created in section 402 of this act);

(B) Covered products under this chapter;

(C) Covered drugs under chapter 69.48 RCW;

(D) Covered electronic products under chapter 70A.500 RCW;

(E) Mercury-containing lights under chapter 70A.505 RCW;

(F) Photovoltaic modules under chapter 70A.510 RCW;

(G) Batteries under chapter 70A.555 RCW; and

(H) Architectural paint under chapter 70A.515 RCW.

    ii. Any policy recommendations for changes to the collection of products covered by programs identified in (c)(i) of this subsection should consider:

(A) Whether and how to amend convenience standards established under each program, including the types of curbside, drop off, event, and public and private infrastructure that serves as collection infrastructure; and

(B) Whether and how to specify that producers of products covered by programs recommended for inclusion in the creation of a common collection system be required to fund the establishment of the common collection infrastructure; and

d. Include an opportunity for public input on the feasibility study and on any draft recommendations.

Section 208

Section 301

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    1. In computing tax due under this chapter, a taxpayer may deduct from the measure of tax amounts received from charges for the refund value of covered beverage containers as required under chapter 70A.--- RCW (the new chapter created in section 402 this act).

    2. The deduction under this section applies to the total applicable refund value collected and held by a retail establishment or recycling refund producer responsibility organization under the recycling refund program in chapter 70A.--- RCW (the new chapter created in section 402 of this act).

    3. The deduction under this section does not apply to unclaimed refunds held by a recycling refund producer responsibility organization.

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    1. To qualify for the deduction under this section, the taxpayer must separately itemize the charges for the refund value on a receipt, invoice, or similar billing document.

    2. The amount of the deduction claimed under this section for a reporting period may not exceed the aggregate charges for the refund value of covered beverage containers during such a reporting period.

  3. For the purposes of this section, "applicable refund value," "covered beverage container," and "recycling refund producer responsibility organization" have the same meanings as in section 102 of this act.

Section 302

The litter tax imposed in this chapter does not apply to:

  1. The manufacture or sale of products for use and consumption outside the state;

  2. The value of products or gross proceeds of the sales exempt from tax under RCW 82.04.330;

  3. The sale of products for resale by a qualified grocery distribution cooperative to customer-owners of the grocery distribution cooperative. For the purposes of this section, "qualified grocery distribution cooperative" and "customer-owner" have the meanings given in RCW 82.04.298;

  4. The sale of food or beverages by retailers that are sold solely for immediate consumption indoors at the seller's place of business or at a deck or patio at the seller's place of business, or indoors at an eating area that is contiguous to the seller's place of business; or

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

    2. For the purposes of this subsection, the following definitions apply:

      1. "Prepared food" has the same meaning as provided in RCW 82.08.0293.

      2. "Nonsingle use container" means a receptacle for holding a single individual's food or beverage that is designed to be used more than once. Nonsingle use containers do not include pizza delivery bags and similar insulated containers that do not directly contact the food. Nonsingle use containers do not include plastic or paper plates or other containers that are disposable.

      3. "Caterer" means a person contracted to prepare food where the final cooking or serving occurs at a location selected by the customer.

  6. The charge for the refund value of covered beverage containers as required under chapter 70A.--- RCW (the new chapter created in section 402 of this act), if the charge is separately stated on a receipt, invoice, or similar billing document given to the purchaser.

Section 303

(1) The hearings board shall only have jurisdiction to hear and decide appeals from the following decisions of the department, the director, local conservation districts, the air pollution control boards or authorities as established pursuant to chapter 70A.15 RCW, local health departments, the department of natural resources, the department of fish and wildlife, the parks and recreation commission, and authorized public entities described in chapter 79.100 RCW:

Section 304

(1) Any civil penalty provided in RCW 18.104.155, 70A.15.3160, 70A.205.280, 70A.230.080, 70A.300.090, 70A.20.050, 70A.245.040, 70A.245.050, 70A.245.070, 70A.245.080, 70A.245.130, 70A.245.140, 70A.65.200, 70A.430.070, 70A.455.090, 70A.500.260, 70A.505.110, 70A.555.110, 70A.560.020, section 124 of this act, 70A.208.230, 70A.565.030, 86.16.081, 88.46.090, 90.03.600, 90.46.270, 90.48.144, 90.56.310, 90.56.330, and 90.64.102 and chapter 70A.355 RCW shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the penalty from the department or the local air authority, describing the violation with reasonable particularity. For penalties issued by local air authorities, within 30 days after the notice is received, the person incurring the penalty may apply in writing to the authority for the remission or mitigation of the penalty. Upon receipt of the application, the authority may remit or mitigate the penalty upon whatever terms the authority in its discretion deems proper. The authority may ascertain the facts regarding all such applications in such reasonable manner and under such rules as it may deem proper and shall remit or mitigate the penalty only upon a demonstration of extraordinary circumstances such as the presence of information or factors not considered in setting the original penalty.

Section 305

The recycling enhancement account is created in the custody of the state treasurer. All penalties collected by the department pursuant to RCW 70A.245.040, 70A.245.050, section 124 of this act, and 70A.208.230 must be deposited in the account. Only the director of the department or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. Expenditures from the account may be used by the department only for providing grants to local governments for the purpose of supporting local solid waste and financial assistance programs.

Section 306

The provisions of RCW 82.32.805 and 82.32.808 do not apply to sections 301 and 302 of this act.

Section 401

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


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