By: Walle H.B. No. 4839

Substitute the following for H.B. No. 4839:

By: Landgraf C.S.H.B. No. 4839

A BILL TO BE ENTITLED

AN ACT

relating to the development, promotion, and funding of certain recycling projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 361.0152(a), Health and Safety Code, is amended by adding Subdivision (2-a) to read as follows:

(2-a) "Program" means the recycling market development program established by Section 361.442.

SECTION 2. Sections 361.0152(c), (d), (f), (g), and (h), Health and Safety Code, are amended to read as follows:

(c) In cooperation with the Texas Economic Development and Tourism Office and in consultation with the recycling market advisory council established under Section 361.443, the program administrator [commission] shall produce for the commission a plan with recommendations to stimulate the use of recyclable materials as feedstock in processing and manufacturing.

(d) The plan must:

(1) identify the quantity and type of recyclable materials that are being recycled from municipal and industrial sources;

(2) identify and estimate the quantity and type of recyclable materials that are generated but not being recycled;

(3) identify and estimate the current economic benefits of recycling materials and the potential economic benefits to be gained by recycling materials identified under Subdivision (2);

(4) identify the location, processing capacity, and consumption capacity of existing principal processors and manufacturers;

(5) identify the barriers to increasing the use of recyclable materials as feedstock for principal processors and manufacturers and means to eliminate those barriers;

(6) identify and estimate the need and type of principal processing and manufacturing facilities necessary to consume the existing and potential volumes of recyclable materials; [and]

(7) consider health effects related to recycled materials and recycling technologies;

[(7)] (8) recommend institutional, financial, administrative, and physical methods, means, and processes that could be applied by this state and by local governments to:

(A) increase the use of recyclable materials;

(B) stimulate the use of recyclable materials by principal processors and manufacturers; and

(C) encourage the expansion of existing principal processors and manufacturers and the development of new principal processors and manufacturers that use recyclable materials;

(8) include a report on the progress and results of research conducted by the program under Section 361.442(b);

(9) include a report on the status of grants and loans provided through the program; and

(10) provide legislative and policy recommendations to the commission regarding the purposes of the program.

(f) To the extent practicable in preparing the plan, the program administrator [commission] shall use methodologies and information derived from other recycling economic studies already performed.

(g) The program administrator [commission] shall update the plan not later than December 1 of each even-numbered year [every four years], and in a year in which the plan is updated, the plan shall be included in the annual summary of municipal solid waste management produced by the municipal solid waste permits section of the commission and delivered to the governor and legislature.

(h) In cooperation with other state agencies, including the governor's office, the commission shall develop an education program intended for the public that must include:

(1) the economic benefits of recycling, including job creation, economic impact, percent of total municipal and industrial solid waste recycled, weight and volume of municipal and industrial solid waste recycled, and taxes and fees paid by the recycling industry;

(2) a spotlight of collectors and processors of recyclable materials and manufacturers based in this state that are using recyclable materials as feedstock; [and]

(3) the detrimental effects of contamination in the recyclable materials stream and the need to reduce those effects; and

(4) educational materials developed under Section 361.0202, as appropriate.

SECTION 3. Chapter 361, Health and Safety Code, is amended by adding Subchapter N-1 to read as follows:

SUBCHAPTER N-1. RECYCLING INNOVATION AND MARKET DEVELOPMENT

Sec. 361.441. DEFINITIONS. In this subchapter:

(1) "Fund" means the Texas Recycling Fund established by Section 361.444.

(2) "Program" means the recycling market development program established by Section 361.442.

Sec. 361.442. RECYCLING MARKET DEVELOPMENT PROGRAM. (a) The commission shall establish a recycling market development program to:

(1) facilitate the realization of economic benefits to this state that may result from the expanded use of recycled material as feedstock in manufacturing and processing;

(2) promote the development of recycling infrastructure and technology in this state; and

(3) make policy recommendations to the commission.

(b) The program administrator shall:

(1) conduct research on:

(A) techniques to improve the recycling collection process and increase recycling rates in this state;

(B) processes to improve the access of manufacturers in this state to collected recyclable materials;

(C) the relationship between the supply of recyclable material and the demand for recycled material feedstock for manufacturing and end use; and

(D) potential improvements to technology currently used at recycling facilities in this state;

(2) oversee and coordinate initiatives conducted by the commission, the comptroller, and other state agencies under the recycling market development implementation program established by Section 361.423;

(3) make recommendations to the commission on potential financial incentives and policy changes to improve recycling infrastructure in this state;

(4) identify and apply for federal funding opportunities related to recycling; and

(5) implement and manage financial incentives for the development of recycling infrastructure and technology in this state, including by:

(A) awarding grants or making loans under this subchapter; or

(B) facilitating the application by eligible recipients for tax credits available under state or federal law.

Sec. 361.443. RECYCLING MARKET ADVISORY COUNCIL. (a) The commission shall appoint an advisory council to advise the program administrator on the implementation of Section 361.0152 and this subchapter.

(b) The commission shall appoint a person to the advisory council or fill a vacancy on the advisory council following review and recommendation of an applicant by the executive director.

(c) The advisory council is composed of the following 13 members:

(1) one representative from a regional council of governments;

(2) one representative from the paper and pulp industry in this state;

(3) one representative from the organics recycling industry in this state;

(4) one representative from the plastic manufacturing industry in this state;

(5) one representative from the advanced recycling industry in this state;

(6) one representative from the mechanical recycling industry in this state;

(7) one representative from the materials recovery and sorting facilities industry in this state;

(8) one representative from the aluminum industry in this state;

(9) one representative from the glass industry in this state;

(10) one representative from the alcoholic beverage or soft drink industry in this state;

(11) one representative from the packaging supply or packaging conversion industry in this state;

(12) one representative from the packaged retail goods industry in this state; and

(13) one representative from the State of Texas Alliance for Recycling;

(13) one representative from an environmental education or advocacy organization working on recycling.

(d) The executive director shall designate the presiding officer of the advisory council.

(e) A member of the advisory council serves a five-year term.

(f) The advisory council shall convene at the call of the presiding officer at least twice a year.

(g) Section 2110.008, Government Code, does not apply to the council.

Sec. 361.444. TEXAS RECYCLING FUND. (a) The Texas Recycling Fund is established as a dedicated account in the general revenue fund to be administered by the executive director.

(b) The fund consists of:

(1) money appropriated to the credit of the fund;

(2) principal and interest payments on all loans from the fund; and

(3) gifts, grants, or donations received for the fund.

(c) Money in the fund may be used only as provided by this subchapter.

(d) The commission may not:

(1) adopt or impose a fee or penalty that is to be paid by a private entity and deposited to the credit of the fund;

(2) direct money collected by the commission from a fee or penalty authorized by law or commission rule to be deposited to the credit of the fund; or

(3) authorize a private organization or entity to impose a fee or penalty that is to be paid by a private entity and deposited to the credit of the fund.

Sec. 361.445. USE OF FUND. The commission may use money in the fund:

(1) for the administration of the program;

(2) to award grants or provide loans to business entities operating in this state that provide a public benefit to this state by encouraging economic development related to recycling projects, as provided by Sections 361.446 and 361.447;

(3) to award grants to a public institution of higher education in this state to conduct research that provides a public benefit to this state by facilitating the development of recycling technology and infrastructure in this state;

(4) to conduct recycling research pilot projects, including pilot projects conducted in partnership with other state agencies or business entities; or

(5) to support the implementation of the public education program described by Section 361.0152(h).

Sec. 361.446. RECYCLING INNOVATION GRANT PROGRAM. (a) The commission by rule shall establish a recycling innovation grant program to allow the program administrator to use money from the fund to make grants to entities that provide a public benefit to this state by:

(1) conducting research on or investing in new recycling technologies and processes in this state;

(2) enhancing the availability of recycled material for use in manufacturing or packaging of products; or

(3) investing in technology that reduces recycling costs or increases recycling efficiency of recyclable material.

(b) Projects that may be considered for a grant under this section include:

(1) expanding recycling and sorting infrastructure, including pilot projects;

(2) expanding or upgrading recycling equipment;

(3) promoting development and improving services in rural communities in this state;

(4) addressing contamination of recyclable material;

(5) investing in processes or technology that make recycling more economically viable;

(6) offsetting an entity's documented operating costs for producing manufacturing feedstock from recycled material; or

(7) enhancing the marketability of recycled material.

(c) The amount of a grant awarded under this section may not exceed 50 percent of the amount of actual eligible costs incurred by the grant recipient within a time period prescribed by the commission.

(d) In awarding a grant under this section, the program administrator shall ensure that:

(1) the grant provides a public benefit to this state as described by Subsection (a);

(2) the commission retains sufficient control over the grant to ensure the state receives a public benefit; and

(3) the grant complies with the eligibility requirements under Section 361.448 and applicable rules.

Sec. 361.447. RECYCLING LOAN PROGRAM. (a) The commission by rule shall establish a loan program to allow the program administrator to use money from the fund to provide financial assistance to business entities for projects that provide a public benefit to this state by improving recycling outcomes in this state.

(b) In making a loan under this section, the program administrator shall ensure:

(1) the loan provides a public benefit to this state by encouraging the development of recycling technology and infrastructure in this state;

(2) the commission retains sufficient control over the loan to ensure the state receives a public benefit; and

(3) the loan complies with the eligibility requirements under Section 361.448 and applicable rules.

Sec. 361.448. ELIGIBILITY CRITERIA AND REQUIREMENTS FOR RECYCLING GRANTS AND LOANS. (a) The commission by rule shall establish eligibility criteria and requirements for a grant or loan made under this subchapter.

(b) Eligibility criteria established by the commission must require an entity receiving a grant or loan to:

(1) be in good standing under the laws of this state;

(2) not owe delinquent taxes to a taxing unit of this state;

(3) have fully repaid any previous loan made under Section 361.447 that is past the loan's maturity date;

(4) maintain sufficient financial assurance in accordance with commission rules for a recycling facility;

(5) agree that the recipient may not use funds from a grant or loan made under this subchapter for financial assurance;

(6) demonstrate that a facility at which grant or loan funds may be used will comply with commission requirements for the containment of odors or liquids; and

(7) demonstrate that the recipient holds any necessary facility permit or authorization under state or federal law by the time a grant or loan is made.

(c) Requirements adopted under this section must specify time limits for the storage and processing of material by a facility operated by an entity receiving a grant or loan.

(d) A recipient may use a grant or loan made under this subchapter only for a recycling purpose approved under this subchapter or commission rule.

Sec. 361.449. ADMINISTRATIVE SUPPORT. The commission shall provide to the program administrative support, staff, and facilities as necessary for the program to implement this subchapter.

Sec. 361.450. RULEMAKING. The commission shall adopt rules as necessary to implement this subchapter.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.