HB1504 (2024) Detail

Relative to architectural paint recycling.


HB 1504-FN - AS AMENDED BY THE HOUSE

 

28Mar2024... 1210h

2024 SESSION

24-2720

08/10

 

HOUSE BILL 1504-FN

 

AN ACT relative to architectural paint recycling.

 

SPONSORS: Rep. Parshall, Ches. 8; Rep. Dutzy, Hills. 6

 

COMMITTEE: Environment and Agriculture

 

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AMENDED ANALYSIS

 

I.  Establishes a paint stewardship program wherein a nonprofit organization approved by the department of environmental services organizes a program for the reception of discarded architectural paint.

 

II.  Establishes an assessment to fund the paint stewardship program.

 

III.  Requires the department of environmental services to propose changes to the assessment for approval by the joint legislative committee on administrative rules.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

28Mar2024... 1210h 24-2720

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Four

 

AN ACT relative to architectural paint recycling.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Subdivision; Architectural Paint Recycling Program.  Amend RSA 149-M by inserting after section 63 the following new subdivision:

Architectural Paint Recycling Program

149-M:64 Purpose.

I.  The general court recognizes that it is unusual for any painting project to use all of the paints purchased for the project, and that current disposal practices for the remaining paints are inefficient and can be costly. The general court further recognizes that the recycling cannot be done efficiently and economically, and in a way that allows a level playing field for producer competition, without the collaboration of all paint producers. The general court thus establishes a paint stewardship program to support and encourage the collection and recycling of latex paint and of oil-based paints and stains that can be exempt from regulation as hazardous waste if properly managed.

II.  The goals of the paint stewardship program are:

(a)  To reduce the amount of unwanted paint generated and promote the reuse and recycling of such paint.

(b)  To establish collection points for post-consumer paints that are convenient and accessible to all areas of the state; to manage post-consumer paint collected at the collection points established under the program using environmentally-sound management practices.

(c)  To manage post-consumer paint and paint containers using environmentally-sound management practices in an economically sound manner, while adhering to the waste management hierarchy of source reduction, reuse, recycling, energy recovery, and disposal; and to generate sufficient revenues to cover all costs of the paint stewardship program.

149-M:65 Definitions. In this chapter:

I.  “Architectural paint” or “paint” means any interior or exterior architectural coating sold in containers of 5 gallons or less which is either latex-based paint, oil-based paint, or stain that, if properly managed, can be exempt from regulation as hazardous waste under RSA 147-A and has been exempted by rules adopted by the commissioner under RSA 147-A.

II.  “Collection point” means a location that is under the direct supervision and control of a retailer, producer, or political subdivision at which there is a suitable container dedicated to collecting and consolidating post-consumer paint.

III.  “Consumer” means a purchaser or user of architectural paint.

IV.  “Costs of the paint stewardship program” means the actual costs incurred by the stewardship organization to establish and maintain the program plus the actual costs of the department for program oversight and compliance assurance.

V. “Distributor” means a business that has a contractual relationship with one or more producers to market and sell architectural paint to retailers in the state.

VI.  “Energy recovery” means recovery in which all or a part of solid waste materials is processed in order to use the heat content or other forms of energy of or from the materials.

VII.  “Environmentally-sound management practices” means procedures for the collection, storage, transportation, reuse, recycling, and disposal of post-consumer paint to be implemented to ensure compliance with all applicable federal, state, and local laws, regulations, rules, and ordinances and protection of human health and the environment. Such procedures shall include adequate recordkeeping, tracking, and documentation of the final disposition of collected materials both within the state and beyond, as well as adequate environmental liability coverage for professional services and for the operations of the contractors working on behalf of the stewardship organization.

VIII.  “Final disposition” means the point after which no further processing takes place and the paint has been transformed for reuse as a feedstock in producing new products or is disposed of, including for energy recovery, at permitted facilities.

IX.  “Paint stewardship assessment” means the amount added to the purchase price of architectural paint sold in the state to cover the costs of the paint stewardship program.

X.  “Paint stewardship program” or “program” means a program for management of post-consumer paint to be operated by a stewardship organization.

XI.  “Post-consumer paint” means architectural paint that was purchased by or for a consumer that was not used and is no longer wanted by the consumer.

XII.  “Producer” means a manufacturer of architectural paint that sells, offers for sale, or distributes such paint in the state under the producer’s own name or brand.

XIII.  “Recycling rate” means the percentage of the total amount of post-consumer paint collected by a stewardship organization in a calendar year that is recycled within 12 months of being collected.

XIV.  “Recycling” means any process by which discarded products, components, and byproducts are transformed into new, usable, or marketable materials in a manner in which the original products may lose their identity but does not include energy recovery or energy generation by means of combusting discarded products, components, and by products with or without other waste products, for purposes of this subdivision.

XV.  “Representative organization” means a nonprofit organization created by producers to operate a paint stewardship program that is open to all producers on a nondiscriminatory basis.

XVI.  “Retailer” means a person that offers architectural paint for sale directly to consumers in the state, whether from a physical location or through catalogs or electronically via the Internet or similar conduits.

XVII.  “Reuse” means the return of a product into the economic stream for use in the same kind of application as originally intended.

XVIII.  “Stewardship organization” means a producer or representative organization that has submitted a paint stewardship program plan in accordance with RSA 149-M:66 and has received approval for the plan pursuant to RSA 149-M:67, II.

149-M:66 Proposals to Establish a Paint Stewardship Program.

I.  Any producer or representative organization that wishes to become the stewardship organization shall, by January 1, 2025, submit a plan for the establishment of a paint stewardship program to the department for approval, together with a non-refundable application fee as specified in paragraph III and established in rules.

II.  A retailer or political subdivision, may participate in being a collection site, but paint manufacturers shall participate in the paint stewardship program and fees associated within the state of New Hampshire to ensure the paint stewardship program remains viable for years to come.

III.  The plan required by paragraph I shall include:

(a)  A description of the applicant, including whether it is a producer or a representative organization, how it is managed and operated, how it is funded, and whether it is operating or has operated a paint stewardship program or similar product stewardship program in another jurisdiction and, if so, a description of that program.

(b)  A description of how the applicant proposes to collect, transport, recycle, and process post-consumer paint covered by the program to meet the goals stated in RSA 149-M:64, II, including the number and location of proposed collection points, which shall be situated so as to ensure that at least 90 percent of state residents have a permanent collection point within a 25-mile radius of their residence.

(c)  A description of how containers used to collect and consolidate post-consumer paint will be managed and protected against damage that could result in a spill, leak, or other discharge.

(d)  The proposed initial amount of the paint stewardship assessment and the information on which the initial amount was determined, together with a description of the process by which the applicant will review and propose adjustments to the assessment, and the frequency of such review and proposed adjustments. A description of the financial assurance mechanism the applicant proposes to use as required by RSA 149-M:70.

IV.  A non-refundable application fee shall be paid by an applicant for review of a paint stewardship plan the application fee structure shall be determined in rulemaking. The applicant shall pay such costs prior to the department issuing a decision under RSA 149-M:67.

149-M:67 Approval of Plan.

I.  The department shall review a plan submitted under RSA 149-M:66 as provided in RSA 541-A:29. The department shall publish a notice on its web site that the plan is available for public review at least 30 days prior to making a determination of whether to approve the plan.

II.  The department shall approve a plan and send written notification of such approval to the organization that submitted the plan upon determining that:

(a)  The organization submitting the plan appears capable of implementing the plan;

(b)  The proposed methods of collecting, transporting, and processing post-consumer paint appear adequate to meet the goals stated in RSA 149-M:64, II; and

(c)  The funding mechanism proposed in the plan appears adequate to meet the requirements of RSA 149-M:68, I; and the proposed financial assurance mechanism meets applicable requirements.

III.  If the department does not approve the plan, the department shall provide written notification to the organization that submitted the plan of the reason for the denial. Such denial shall not preclude the organization from submitting an amended plan.

149-M:68 Paint Stewardship Program Funding.

I.  The stewardship organization shall administer the paint stewardship assessment for all architectural paint sold by participating producers in the state. The amount of the assessment shall be set so as to recover the costs of the paint stewardship program without exceeding such costs, based on a good faith estimate of those costs. If the funds generated by the assessment exceed the amount necessary to recover the costs of the program, the excess funds shall be used by the stewardship organization as stated in the approved plan to reduce future paint stewardship assessments and to improve services under the program. The department shall approve such changes in services before they are instituted.

(a)  The original assessment shall not be more than:  $3.50 for cans above one gallon and no less than $0.75 for quantities less than or equal to one pint. Otherwise, these fees, as set forth in the rulemaking process, shall be reviewed annually to ensure the fees continue to meet the cost of the program. However, nothing in this section shall be construed to require the product stewardship organization to implement the paint stewardship program if the amount of the approved assessment does not recover the costs of the paint stewardship program based on a good faith estimate of those costs.

(b)  By July 1, 2025 the department shall establish the assessment by rule. Any change in the assessment shall be proposed by the department with the approval of the joint legislative committee on administrative rules and copies of the proposal shall be sent to the chairs of the house and senate ways and means committees at least 2 weeks before the public hearing.

II.  All paint manufacturers shall add the paint stewardship assessment to the cost of all architectural paint sold for sale or other distribution in the state. Each producer/manufacturer shall remit the assessments collected to the stewardship organization. Collection of the paint stewardship assessment shall commence no later than July 1, 2025.

III.  A retailer or distributor shall include the paint stewardship assessment in the consumer’s purchase price of the architectural paint sold by that retailer or distributor. The organization managing the program shall provide sample language to be displayed in the paint department explaining the paint stewardship program.

IV.  No additional charge of any type shall be made at the time of post-consumer paint collection by a retailer or distributor.

V. The department shall send an invoice to the stewardship organization in each quarter that accrued costs exceed $100, with documentation of the costs being invoiced to the organization.  The stewardship organization shall pay such costs within 30 days of the date of the invoice. In any quarter that the department’s costs do not exceed $100, the amounts shall continue to accrue and be invoiced when the total exceeds $100. All funds received at the department as recovered costs shall be deposited to the hazardous waste cleanup fund established under RSA 147-B:3.

149-M:69 Operation of Paint Stewardship Program.

I.  The stewardship organization shall implement the approved plan within 3 months of receiving approval under RSA 149-M:67, II.

II.  Upon implementation of the plan, no producer shall sell or offer for sale architectural paint in the state unless the producer participates in the paint stewardship program. The stewardship organization shall notify the department within 30 days of which producers are participating in that organization’s paint stewardship program.

III.(a) The stewardship organization shall provide consumers and retailers with educational materials regarding the paint stewardship assessment and paint stewardship program. Such materials shall include information regarding available end-of-life management options for architectural paint offered through the paint stewardship program; promote waste prevention, reuse and recycling; and notify consumers that the assessment to fund the paint stewardship program is included in the purchase price of architectural paint sold in the state and that state law prohibits consumers from being charged any fee at the point of collection of waste paint.

(b)  The materials provided pursuant to subparagraph (a) may include the following:

(1)  Signage that is prominently displayed and easily visible to consumers;

(2)  Printed materials and templates of materials for reproduction by retailers to be provided to the consumer at the time of purchase or delivery;

(3)  Advertising or other promotional materials that include references to the paint stewardship program; and

(4)  A manual for the operator of a collection point to ensure the use of environmentally-sound management practices when handling architectural paints.

IV.  The stewardship organization shall notify the department in writing within 30 days of establishing any additional collection points, changing the location of a collection point, or terminating a collection point.

V.  If the stewardship organization wishes to change the paint stewardship assessment, the stewardship organization shall submit a request to change the assessment to the department. The organization shall explain in detail the basis for the change and include audited financial reports to support the request. The department shall submit the request to the joint legislative committee on administrative rules by the process provided in RSA 149-M:68, I(b) if it determines that the change is necessary to cover the actual reasonable costs of the program.

VI.  The stewardship organization that organizes the collection, transportation, and processing of post-consumer paint, in accordance with the paint stewardship program approved by the department under this subdivision, shall be exempt from RSA 356 with respect to any claims of a violation of antitrust arising from conduct undertaken in accordance with the paint stewardship program.

VII.  Paint received at a collection location shall be considered universal waste pursuant to rules adopted by the department of environmental services. Nothing in this section shall otherwise reclassify paint as universal waste elsewhere in statute. This classification applies only to the paint stewardship collection receiving locations under the oversight of the nonprofit organization.

149-M:70 Financial Assurance Required.

I.  Upon receiving approval of a proposed paint stewardship program, the stewardship organization shall take such steps as are necessary to ensure that financial assurance is in place. No post-consumer paint shall be collected until financial assurance is in place.

II.  Financial assurance shall be in the form of a bond, letter of credit, or some other financial mechanism, with or without a trust or standby trust, provided that whatever mechanism is used shall:

(a)  Be in an amount sufficient to remove all collected post-consumer paint if the stewardship organization terminates the program unexpectedly or fails to provide collection services that are consistent with the approved plan.

(b)  Insure to the benefit of, and be payable to, the state of New Hampshire, department of environmental services, upon presentation of appropriate documentation; and require at least 120 days prior notice to the department prior to termination.

149-M:71 Annual Report Required.

I.  The stewardship organization shall submit a report to the department annually, with the first report due 90 days after completion of the first year of program implementation, and in no case later than 18 months from the date the plan was approved pursuant to RSA 149-M:67, II. Thereafter, annual reports shall be submitted within 90 days after the end of each operating year. Such reports shall include:

(a)  A description of the methods used to collect, transport, reduce, reuse, and process post-consumer paint in the state, including the location of each collection point;

(b)  The volume and type of post-consumer paint collected in the state by method of disposition, including reuse, recycling, and other methods of processing; and whether the recycling rate has increased, decreased, or remained the same;

(c)  The total costs of the paint stewardship program, as determined by an independent financial audit which may be funded from the paint stewardship assessment, that includes a breakdown of administration, collection, transportation, disposition, and communication costs; a summary of all outreach and educational activities undertaken and samples of educational materials provided to consumers of architectural paint;

(d) The total volume of post-consumer paint collected by the paint stewardship program and a breakdown of the volume collected at each collection site;

(e) Based on the paint stewardship assessment collected by the paint stewardship program, an estimate of the total volume of architectural paint sold in the state during the preceding year;

(f) An evaluation of the effectiveness of the paint stewardship program compared to prior years and anticipated steps the stewardship organization plans to take to improve performance throughout the state, if needed; and

(g)  A report on how the stewardship organization has ensured environmental compliance at all collection points within the program.

II.  Reports submitted to the department under this section shall be posted on the department’s website, except that proprietary information submitted to the department in a plan, in an amendment to a plan, or pursuant to reporting requirements of this section that is identified by the submitter as proprietary information shall be subject to the exception for confidential information in RSA 91-A. As used in this paragraph, “proprietary information” means information that is a trade secret or production, commercial, or financial information, the disclosure of which would impair the competitive position of the submitter and would make available information not otherwise publicly available. Such an exclusion shall not be used to conceal information necessary to the understanding of the finances of the program or in opposition to any rules adopted by the department of environmental services or regulations enacted by the Environmental Protection Agency.

III.  The department shall append to each annual report submitted under this section its own accounting of its activities and finances relative to this chapter, and shall provide the combined report to the chairs of the house and senate environmental and ways and means committees.

149-M:72 Retailers.

I.  Beginning July 1, 2025 or 3 months after a plan is approved by the commissioner under RSA 149-M:67, whichever occurs later, no retailer shall sell architectural paint unless, on the date the retailer ordered the architectural paint from the producer or the producer’s agent, the producer or the paint brand is listed by the department as provided under RSA 149-M:73 as implementing or participating in an approved paint stewardship program.

II.  Any retailer may serve as a paint collection point under the paint stewardship program provided the retailer complies with all applicable requirements of the paint stewardship program, including using environmentally-sound management practices.

149-M:73 List of Producers and Brands. The department shall maintain a list of producers participating and the brands included in the paint stewardship program. Such list shall be made available to the public on the department’s web site and by other means as the department deems appropriate.

149-M:74 Liability for Discharges.

I.  Any person who causes or suffers a spill, leak, or other discharge of materials collected under this program shall be liable for all costs of containment and removal of the discharged paint and, if the spill, leak, or discharge was onto or into any land surface, sewer or storm water collection network, surface water, or wetland, or in any area where the paint could reach surface water or groundwater, also shall be liable for the costs of cleanup and restoration of the site and surrounding environment.

II.  Any person who causes or suffers a spill, leak, or other discharge of materials collected under this program due to gross negligence or reckless disregard, or by intention, shall be subject to the applicable penalty provisions of RSA 149-M and RSA 147-A.

III.  Any person who agrees to operate a collection point and who responsibly implements environmentally-sound management practices in good faith shall not be subject to penalties for the acceptance or storage of, or for any spill, leak, or discharge of collected paint, or other materials that are inadvertently accepted pursuant to the program, and which occurs despite the implementation of such practices.

149-M:75 Rulemaking. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to:

I.  The content and structure of applications under RSA 149-M:66, including information and other materials to be submitted by an applicant.

II.  The amount of the assessments for the stewardship organization.

III.  The types of financial assurance that may be used to comply with RSA 149-M:70.

IV.  The content and structure of annual reports under RSA 149-M:71, including information and other materials to be submitted by the stewardship organization.

V.  Procedures for filing and review of requests to change the paint stewardship assessment.

VI.  Environmentally-sound management practices at collection points.

VII.  Definitions of terms not defined in this chapter.

VIII.  Standards for granting any waivers from RSA 149-M:64-74.

2  Effective Date.  This act shall take effect July 1, 2024.

 

LBA

24-2720

Amended 4/17/24

 

HB 1504-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2024-1210h)

 

AN ACT relative to architectural paint recycling.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

Estimated State Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Revenue Fund(s)

Hazardous Waste Cleanup Fund

 

Expenditures

$0

In excess of $87,000

In excess of $112,000

In excess of $116,000

Funding Source(s)

Hazardous Waste Cleanup Fund

 

Appropriations

$0

$0

$0

$0

Funding Source(s)

None

 

Does this bill provide sufficient funding to cover estimated expenditures? [X] No

Does this bill authorize new positions to implement this bill? [X] No

 

Estimated Political Subdivision Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

County Revenue

$0

$0

$0

$0

County Expenditures

$0

$0

Indeterminable Increase

Indeterminable Increase

Local Revenue

$0

$0

 

 

Local Expenditures

$0

$0

Indeterminable

Indeterminable

 

METHODOLOGY:

The Department of Environmental Services indicates this bill would amend RSA 149-M (Solid Waste Management Act) to establish a takeback program for collection and recycling/disposal of post-consumer architectural paint.  The program would be coordinated by paint manufacturers individually or through a representative organization, with the Department providing oversight and enforcement.  Implementation of the program would begin three months after the Commissioner approves a program plan submitted by the representative organization.  The representative organization must submit this plan by January 1, 2025.  Once the program is implemented, manufacturers, wholesalers and retailers would be prohibited from selling architectural paint in New Hampshire from manufacturers not participating in the program. The Department makes the following assumptions concerning the fiscal impact of the bill:

 

  • The program will likely be coordinated through a single representative organization instead of individual manufacturers (as this is the model adopted in other states with paint takeback programs).

 

  • The representative organization would manage day-to-day operations and financial aspects of the program, including collection and management of paint, development of education materials, submission of annual reports, contracting with independent auditors, etc.

 

  • The cost of the program would be funded by a fee added to the purchase price of new architectural paint sold in New Hampshire.  The fee proceeds will be paid to the stewardship program to fund the organization’s costs to operate the program.

 

  • The Department would be responsible for general administration and enforcement, including approving the program, rulemaking, reviewing annual reports submitted by manufacturers, evaluating program efficacy, assuring compliance by manufacturers and collection points, and submitting reports to the legislature.  These responsibilities would necessitate the creation of a new Environmental Scientist position, (SOC 19, Pay Band 8).  This position would need to be filled no later than October 1, 2024.

 

  • Initial administrative costs of the Department will be funded by the application fee paid by the stewardship organization prior to plan approval.  Subsequent expenses would be  reimbursed quarterly based upon documented costs invoiced by the Department to the stewardship organization.

 

  • Currently, the cost of managing post-consumer paint is borne primarily by local governments (municipalities and solid waste districts).  Thus, the implementation of this program would likely reduce local expenditures as the cost burden would shift to consumers purchasing new paint.  The Department is not in a position to precisely quantify this fiscal impact.

 

  • Construction/renovation cost for state, county and local projects would increase by an indeterminable amount due to the fee added to the purchase price of new paint.  The Department is not in a position to quantify this fiscal impact.

 

  • The bill is not expected to impact county or local revenues and is expected to increase state revenues to the hazardous waste cleanup fund cover costs to run the program.

 

The Department estimates the cost of a new Environmental Scientist position would be  approximately $87,000 in FY 2025, $112,000 in FY 2026 and $116,000 in FY 2027.  The Department is unable to accurately calculate the complete costs or fiscal impact of this bill.  The Department anticipates that there are likely to be indeterminable costs to the State beyond the position costs.  Such costs may include increased expenditures for the procurement of paint for state construction/renovation projects.

 

AGENCIES CONTACTED:

Department of Environmental Services

 

Amendments

Date Amendment
March 20, 2024 2024-1210h

Links


Date Body Type
Feb. 6, 2024 House Hearing
March 19, 2024 House Exec Session
March 19, 2024 House Floor Vote
April 18, 2024 Senate Hearing

Bill Text Revisions

HB1504 Revision: 41472 Date: April 17, 2024, 2:52 p.m.
HB1504 Revision: 41314 Date: March 20, 2024, 4:05 p.m.
HB1504 Revision: 40019 Date: Dec. 11, 2023, 9 a.m.

Docket


April 11, 2024: Hearing: 04/18/2024, Room 103, SH, 01:00 pm; SC 15


April 2, 2024: Introduced 03/21/2024 and Referred to Energy and Natural Resources; SJ 8


March 28, 2024: Ought to Pass with Amendment 2024-1210h: MA VV 03/28/2024 HJ 10


March 28, 2024: Amendment # 2024-1210h: AA VV 03/28/2024 HJ 10


March 20, 2024: Committee Report: Ought to Pass with Amendment # 2024-1210h 03/19/2024 (Vote 20-0; CC) HC 12 P. 13


March 13, 2024: Executive Session: 03/19/2024 10:30 am LOB 301-303


March 13, 2024: Full Committee Work Session: 03/19/2024 10:00 am LOB 301-303


March 8, 2024: Full Committee Work Session: 03/13/2024 11:30 am LOB 301-303


Feb. 21, 2024: Full Committee Work Session: 03/05/2024 10:45 am LOB 301-303


Feb. 16, 2024: Subcommittee Work Session: 02/20/2024 09:00 am LOB 301-303


Feb. 6, 2024: Full Committee Work Session: 02/13/2024 10:00 am LOB 210-211


Jan. 31, 2024: Public Hearing: 02/06/2024 03:30 pm LOB 301-303


Dec. 11, 2023: Introduced 01/03/2024 and referred to Environment and Agriculture HJ 1