89R9656 DRS-D

By: Hancock S.B. No. 2689

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) 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.

(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.

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 conducting research on or investing in new recycling technologies and processes in this state.

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

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

(2) expansions or upgrades of recycling equipment;

(3) promotion of development and improving services in rural communities in this state; or

(4) addressing contamination of recyclable material.

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) The commission by rule shall establish the eligibility requirements for a business entity to receive a loan under this section. The requirements must require the business entity to:

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

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

(3) have fully repaid any previous loans received under this section.

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

(1) the public purpose of developing recycling technology and infrastructure in this state is accomplished; and

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

(d) A recipient may use a loan made under this section only for expenses needed to develop recycling infrastructure and technology in this state in a manner that serves a public purpose.

Sec. 361.448. ADMINISTRATIVE SUPPORT. The commission shall provide to the program administrative support, staff, and facilities as necessary for the program to implement this subchapter.

Sec. 361.449. 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.