Enacts Part 2K to Article 9, GS Chapter 130A, titled Beverage Container Deposits and Refunds. Includes legislative findings and intent. Sets forth 26 defined terms. Defines "beverage" as any ready-to-drink liquid intended for human oral consumption, including alcoholic and non-alcoholic drinks, carbonated sodas and water, and noncarbonated drinks; excludes FDA-regulated drugs, infant formula, meal replacement liquids, or dairy products derived from animal milk. Defines "beverage container" as a prepackaged container designed to hold a beverage that is made of any material, including glass, plastic, and metal; excludes cartons, pouches, or aseptic packaging such as a drink box.
Effective April 1, 2025, charges the Department of Environmental Quality (DEQ) with administration of new Part 2K. Authorizes DEQ to adopt rules necessary or useful to implement and carry out its duties in Part 2K, and the Commission for Public Health (Commission) to adopt rules necessary or useful to implement the Part. Lists nine determinations DEQ must make by rule, including calculation methods for redemption and recycling rates for beverage containers and amounts of reusable beverage containers sold or refilled; information collection procedures and methods to monitor compliance with the Part's requirements; designation of environmental justice communities; and procedures for licensing redemption centers.
Mandates consumers pay a deposit when purchasing a beverage in a beverage container equal to the refund value, set at 10 cents for containers with a volume of at least 50 milliliters and not more than 3 liters, subject to adjustment by DEQ every five years, beginning with July 1, 2027, as specified. Effective April 1, 2025, requires beverage containers that contains a beverage sold or offered for sale in the State to emboss or imprint "North Carolina" or "N.C." on the product label or, if metal, on the top of the container, and the refund value of the container in sizing specified, as well as a UPC barcode to identify and validate participation in the refund program established in Part 2K.
Mandates retailers, defined to include vending machine operators with machines containing beverages in beverage containers, to pay deposits in the same amount set for refunds to consumers, to distributors when purchasing beverages and to receive consumer deposits at the time of sale. Requires retailers to post signage regarding nearby redemptions centers which meet specified operation criteria.
Prohibits distributors, as defined, from selling a beverage container in the State without registering the beverage container with DEQ prior to the sale on a form provided by DEQ which includes six described identifiers and any other information required by DEQ to enforce Part 2K, effective April 1, 2025. Authorizes DEQ to request distributors to provide a copy of the container label or picture of the container sold or offered for sale on which a deposit is initiated. Requires distributors to place deposits, in the same amount set for refunds to consumers, on all beverage containers sold, offered for sale, or distributed into the sale.
Requires DEQ to allow for the establishment, operation and licensure of redemption centers, which are required to accept all types of beverage containers and supplement the return of containers to dealers.
Requires dealers, as defined, to accept from a redeemer any empty beverage container that is made of the same material as that sold by the dealer at their place of business during any period the business is open for business. Directs dealers to pay a redeemer the set deposit value for each beverage container redeemed. Authorizes dealers to refuse beverage containers for described defects, such as the container is not clean or contains contaminants. Provides for redemption of the deposit value in legal tender, and permits the use of scripts or receipts from reverse vending machines to be exchanged for legal tender. Requires dealers to designate an area of their place of business to accept beverage containers for redemption.
Requires distributors to accept empty beverage containers from dealers and redemption centers of any kind sold, distributed, or offered for sale by the distributor in the State and pay the dealer or redemption center a handling fee set by DEQ and updated every five-years pursuant to specified criteria. Requires distributors to accept and redeem empty beverage containers from dealers and redemption centers. Deems dealers' failure to pick up empty beverage containers a violation of Part 2K. Permits groups of dealers to create or appoint a producer responsibility organization (501(c) or (d) organizations created by a group of distributors) to fulfill their obligations. Prohibits DEQ from delegating oversight, enforcement, and management authority under Part 2K. Requires DEQ to increase the handling fee by one cent three years after the effective date of the act if the described threshold for redemption points based on population is met.
Authorizes DEQ to approve procedures allowing for curbside recycling entities to be paid a processing payment (capped at the amount set for handling fees) for beverage containers collected, processed, stored, and delivered to distributors for recycling, subject to cleanliness, sorting, and baling standards. Excludes curbside collections from performance calculations required under Part 2K.
Details performance standards with respect to redemption of beverage containers and recycling of single-use containers, with percentage standards set for containers sold in the State in three phases, beginning July 1, 2026, July 1, 2028, and July 1, 2030, and ranging from 70% to 95% of containers sold. Requires DEQ to require distributors and producer responsibility organizations to work with dealers to develop a plan to ensure performance standards are met, with threshold percentages set for containers sold and those returned and refilled in two phases, beginning July 1, 2028, and July 1, 2030.
Details management requirements regarding deposits received by deposit initiators, including requiring the segregation of deposits in a deposit transaction fund maintained separately from other revenue, and limiting the use of deposits to pays refunds to consumers. Requires monthly remittance to DEQ of unredeemed deposits, determined as described. Provides for reimbursement for excess funds remitted.
Creates the Beverage Container Litter Reduction Account within DEQ, to be administered by DEQ, and consisting of unredeemed refund values remitted by distributors. Limits the funds in the Account to the administration of Part 2K and for a reserve for contingencies in a reasonable and prudent amount of up to $1 million. Creates the Unredeemed Beverage Container Deposits Account within DEQ, to be administered by DEQ, to consist of the remaining balance of the Reduction Account after administrative and reserve expenses are made. Lists four permitted uses of the Deposits Account, including described litter abatement and recycling activities and public education programs.
Provides for a $1,000 penalty for a person to sell or offer for sale beverages in containers not labeled or registered pursuant to the Part's requirements, or to make a report of a violation that is false. Authorizes DEQ to examine deposit initiator accounts and records, and access of penalty of 10% per year plus interest, for underpayments of refunds, and authorized penalties for late or continued unremitted payments.
Requires distributors to make quarterly reports to DEQ, beginning April 15, 2025, on the number of beverage containers sold, categorized as provided, and whether the container is reusable or single-use. Requires DEQ to annually report to the Environmental Review Commission, beginning by July 1, 2025, on nine summary points regarding the impact and cost of Part 2K, as well as any other information DEQ deems pertinent. Allows DEQ to require retailers, distributors, or certified redemption centers to provide compliance information to prepare the report.
Effective January 1, 2026.
Appropriates $50,000 in recurring funds to DEQ for 2024-25 for administrative expenses in implementing the act. Effective July 1, 2024.
LITTER REDUCTION ACT OF 2024.
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View NCGA Bill Details | 2023-2024 Session |
AN ACT TO REDUCE ROADSIDE AND OTHER LITTERING AND TO ENCOURAGE RECYCLING BY REQUIRING A DEPOSIT ON BEVERAGE CONTAINERS AND REQUIRING REDEMPTION CENTERS TO ACCEPT RETURNED BEVERAGE CONTAINERS AND REFUND THE DEPOSITS.Intro. by Alexander.
Status: Ref to the Com on Appropriations, if favorable, Rules, Calendar, and Operations of the House (House action) (May 6 2024)
H 978
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Bill H 978 (2023-2024)Summary date: May 2 2024 - View Summary
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