(a) Short title.—This Act may be cited as the “Accelerating a Circular Economy for Plastics and Recycling Innovation Act of 2024”.

(b) Table of contents.—The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
Sec. 3. Definitions.

(a) Findings.—Congress finds the following:

(1) The Environmental Protection Agency has recognized that reusing and recycling materials conserves natural resources, reduces waste sent to landfills and incinerators, prevents pollution, conserves natural resources, reduces greenhouse gases contributing to climate change, and helps create jobs and tax revenue.

(2) Given these benefits, the Environmental Protection Agency set a National Recycling Goal in 2020 to increase the national recycling rate for all materials to 50 percent by 2030.

(3) As a parallel effort, the Environmental Protection Agency developed a “National Recycling Strategy” that identifies objectives and actions to create a stronger, more resilient recycling system.

(4) Collectively, these efforts intend to increase the amount of materials that can be recycled, make the processing system more efficient, ensure the industry can keep pace with today’s diverse and changing waste system, and strengthen the economic markets for recycling materials.

(5) These measures are also intended to help manufacturers make more products using recycled materials, increase competition, and encourage demand for more products made using recycled materials.

(6) There is an unprecedented public and private momentum and investment to innovate, improve, and expand the existing recycling system to develop a circular economy for plastics.

(7) A circular economy for plastic products and materials, whether derived from oil, gas, or organics, benefits businesses, society, and the environment.

(8) To meet the National Recycling Goal and support domestic interests and competitiveness within international markets, it will be necessary for the recycling market in the United States to expand its deployment of advanced recycling technologies.

(9) These innovative manufacturing processes fundamentally transform the chemical structure of post-use polymer products, many of which are traditionally hard to recycle by mechanical recycling techniques, back to their basic chemical or molecular components.

(b) Purpose.—The purposes of this Act are to—

(1) grow the circular economy for plastics products and materials to—

(A) meet the National Recycling Goal;

(B) protect the global environment;

(C) reduce plastic waste;

(D) support the standardization of the recycling infrastructure capacity in the United States; and

(E) bolster competition, technological innovation, and robust global and national markets around circular products;

(2) create national plastics recycling standards to encourage the modernization of the recycling infrastructure of the United States;

(3) foster competition and consistency in marketing recycled plastics in plastics packaging;

(4) recognize advanced recycling technologies as a critical component of the international market for recycled products and the National Recycling Strategy;

(5) recognize advanced recycling as a manufacturing process to be regulated under applicable Federal, State, and local environmental statutes, rules, and regulations, including the Clean Air Act (42 U.S.C. 7401 et seq.); and

(6) promote international movement towards the use of advanced recycling technologies and the utilization of recycled plastics in the manufacturing of plastics packaging to support the global economy.

In this Act:

(1) ADMINISTRATOR.—The term “Administrator” means the Administrator of the Environmental Protection Agency.

(2) ADVANCED RECYCLING; ADVANCED PLASTICS RECYCLING.—The term “advanced recycling” or “advanced plastics recycling” means a manufacturing process for the conversion of post-use polymers and recovered feedstocks into recycled products that include basic raw materials, feedstocks, chemicals, and other products through processes that include pyrolysis, gasification, depolymerization, catalytic cracking, solvolysis, chemolysis, and other similar technologies. The recycled products produced at advanced recycling or advanced plastics recycling facilities include, but are not limited to, monomers, oligomers, plastics, plastic and chemical feedstocks, basic and unfinished chemicals, waxes, lubricants, coatings, and adhesives. Advanced recycling shall not be considered incineration of plastics or municipal waste combustion, and products sold as fuel are not recycled products. Advanced recycling shall not be considered “solid waste management”, “solid waste processing”, “solid waste recovery”, “incineration”, “treatment”, “thermal destruction”, “municipal waste combustion”, “waste-to-energy”, or similar designations that would prevent the process from being considered a recycling process and the products from such process being considered recycled products. Advanced recycling shall be regulated as a manufacturing process under any potentially applicable Federal, State, or local environmental laws, rules, and regulations, including, but not limited to, the Clean Air Act (42 U.S.C. 7401 et seq.), the Clean Water Act (33 U.S.C. 1251 et seq.), and the Solid Waste Disposal Act (42 U.S.C. 6901 et seq,).

(3) ADVANCED RECYCLING FACILITY; ADVANCED PLASTICS RECYCLING FACILITY.—The term “advanced recycling facility” or “advanced plastics recycling facility” means a manufacturing facility that receives, stores, and converts post-use polymers and advanced recycling plastic feedstocks it receives using advanced recycling. Advanced recycling or advanced plastics recycling facilities shall not be considered “solid waste facilities”, “solid waste disposal facilities”, “solid waste management facilities”, “resource recovery facilities”, “materials recovery facilities”, “thermal destruction facilities”, “incinerators”, “municipal waste combustors”, “combustion facilities”, “treatment facilities”, “reclamation facilities”, “recycling facilities”, or “recycling centers”, as defined herein or in under definitions in the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), the Clean Air Act (42 U.S.C. 7401 et seq.), or any other potentially applicable Federal, State, or local environmental laws, rules, and regulations. Advanced recycling or advanced plastics recycling facilities shall be regulated as manufacturing facilities under any potentially applicable Federal, State, or local environmental laws, rules, and regulations, including, but not limited to, the Clean Air Act (42 U.S.C. 7401 et seq.) and the Clean Water Act (33 U.S.C. 1251 et seq.).

(4) APPROVED CERTIFICATION SYSTEM.—The term “approved certification system” shall have the meaning ascribed to that term in section 202(c)(2) of this Act.

(5) AUDITABLE.—The term “auditable” means a system for verifying the chain of custody between advanced recycling plastic feedstocks, advanced recycling products, and the plastics produced from advanced recycling products through attribution using mass balance.

(6) CERTIFIED COMPOSTABLE PRODUCT.—The term “certified compostable product” means a product that is certified by a recognized third-party independent verification body as meeting the international standard specification ASTM D6400 (relating to standard specification for labeling of plastics designed to be aerobically composted in municipal or industrial facilities) or ASTM D6868 (relating to standard specifications for labeling of end items that incorporate plastics and polymers as coatings or additives with paper and other substrates designed to be aerobically or anaerobically composted in homes or municipal or industrial facilities).

(7) CERTIFIED RECYCLED.—The term “certified recycled” shall have the same meaning as recycled plastics.

(8) CHAIN OF CUSTODY.—The term “chain of custody” means a system to document and verify the path taken through means, including but not limited to, physical methods or mass balance attribution during the production of products.

(9) CIRCULAR ECONOMY.—The term “circular economy” shall have the meaning provided in section 2 of the Save Our Seas 2.0 Act (33 U.S.C. 4201).

(10) COMMITTEE.—The term “Committee” means the National Plastic Recycling Standards Advisory Committee established under section 101.

(11) DISPOSAL.—The term “disposal” has the meaning given such term under section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).

(12) GASIFICATION.—The term “gasification” means a manufacturing process through which post-use polymers or recovered feedstocks are heated in an oxygen-controlled atmosphere and converted to syngas (carbon monoxide and hydrogen), followed by conversion into valuable raw, intermediate, and final products.

(13) HAZARDOUS WASTE.—The term “hazardous waste” has the meaning given such term in section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).

(14) MASS BALANCE CERTIFICATION.—The term “mass balance certification” means an auditable chain of custody accounting methodology with rules defined by a third-party certification system that enables the attribution of the mass of advanced recycling plastic feedstocks to one or more advanced recycling products.

(15) MARKETER.—The term “marketer” means a person who—

(A) manufactures or purchases manufactured consumer commodities, food, and beverages; and

(B) encloses, contains, stores, protects, preserves, or identifies such consumer commodities, food, and beverages in plastic packaging for the purpose of selling, importing, or distributing in the United States.

(16) MECHANICAL RECYCLING.—The term “mechanical recycling” means a recycling process that recycles material, including plastic through a physical process, including grinding, washing, separating, drying, regranulating, and compounding.

(17) MINIMUM MANDATE.—The term “minimum mandate” means the minimum mandate established under section 201(3).

(18) MUNICIPAL SOLID WASTE.—The term “municipal solid waste” means garbage, refuse, industrial lunchroom, or office waste, and other material, including solid, liquid, semisolid, or contained gaseous material resulting from operation of residential, municipal, commercial, or institutional establishments and from community activities, generated by a household, collected and disposed of at municipal solid waste facilities, and any sludge not meeting the definition of residual or hazardous waste hereunder from a municipal, commercial, or institutional water supply treatment plant, waste water treatment plant, or air pollution control facility. The term does not include advanced recycling feedstocks that are collected, sorted, transported, stored, or processed for conversion to advanced recycling products through advanced recycling. Municipal solid waste can be used as advanced recycling feedstocks upon physical separation or sorting.

(19) NATIONAL PLASTIC RECYCLING STANDARDS.—The term “national plastic recycling standards” means the standards established under section 102.

(20) NATIONAL RECYCLING GOAL.—The term “National Recycling Goal” means the goal set forth by the Environmental Protection Agency during the 2020 America Recycles Summit to increase the national recycling rate to 50 percent by 2030.

(21) NATIONAL RECYCLING STRATEGY.—The term “National Recycling Strategy” or the “Strategy” means the National Recycling Strategy finalized by the Environmental Protection Agency in November 2021.

(22) PLASTIC.—The term “plastic” or “plastics” means any material made of polymeric organic compounds derived from monomers and additives that can be shaped by flow.

(23) PLASTICS PACKAGING.—The term “plastics packaging” means any immediate container or wrapping in which the principal structural element is composed of plastic that is used to enclose, contain, store, protect, preserve, transport, or identify consumer commodities, food, or beverages for use in the sale of such consumer commodities, food, or beverages.

(24) PLASTICS RECYCLING ACCOUNTING AND LABELING PROGRAM.—The term “Plastics Recycling Accounting and Labeling Program” means the accounting and labeling program established under section 203(a) of this Act.

(25) POST-USE PLASTIC.—The term “post-use plastic” means a pre-consumer recovered material or a post-consumer recovered material that—

(A) contains plastic derived from a residential, municipal, industrial, community, or commercial source;

(B) is not mixed with hazardous waste except to the extent allowed by the national plastic recycling standards; and

(C) is in a form acceptable for mechanical recycling and advanced recycling.

(26) POST-USE PLASTIC PRODUCT.—The term “post-use plastic product” means material made wholly or in part of post-use plastics.

(27) POST-USE POLYMER.—The term “post-use polymer” means a plastic to which all of the following apply:

(A) The plastic is derived from any industrial, commercial, agricultural, or domestic activities, and includes pre-consumer recovered materials and post-consumer materials.

(B) The plastic has been sorted form solid waste and other regulated waste but may contain residual amounts of waste such as organic material and incidental contaminants or impurities (e.g., paper labels and metal rings).

(C) It is not mixed with solid waste or hazardous waste onsite or during processing at the advanced recycling facility.

(D) The plastic’s use or intended use is as a feedstock for the manufacturing of feedstocks, raw materials, or other intermediate products or final products using advanced recycling.

(E) The plastic is processed at an advanced recycling facility or held at such facility prior to processing.

(28) PRE-CONSUMER RECOVERED PLASTIC MATERIAL.—The term “pre-consumer plastic recovered material” means material that has never reached the end user, having been diverted from the waste stream during a manufacturing process. The term does not include material generated in a process and capable of being reused or reutilized as a substitute for a raw material without being modified in any way. Pre-consumer recovered plastic material collected, sorted, transported, stored, or processed for use in mechanical or advanced recycling shall not be considered solid waste under the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) or its implementing regulations.

(29) PROCESSING.—The term “processing” means any method or technology used for the purpose of reducing the volume or bulk of municipal or residual solid waste for disposal. The term does not include any method or technology used to convert part or all of such materials for on-site reuse in advanced recycling.

(30) PYROLYSIS.—The term “pyrolysis” means a manufacturing process through which post-use polymers or recovered feedstocks are heated in the absence of oxygen until melted and thermally decomposed (non-catalytically or catalytically) and are then cooled, condensed, and converted into valuable raw materials and intermediate and final products, including but not limited to, plastic monomers, chemicals, naphtha, waxes, plastic, and chemical feedstocks that are returned to economic utility in the form of raw materials and products.

(31) RECOVERED FEEDSTOCK.—The term “recovered feedstock” means one or more of the following materials that has been processed so that it may be used as feedstock in an advanced recycling facility post-use polymers or materials for which the Environmental Protection Agency has made a non-waste determination or has otherwise determined are feedstocks and not solid waste. Recovered feedstock does not include unprocessed municipal waste. Recovered feedstock is not mixed with solid waste or hazardous waste on-site or during processing at an advanced recycling facility.

(32) RECYCLED PLASTIC.—The term “recycled plastic” means products that are produced from mechanical recycling of pre-consumer recovered feedstocks or plastics, and post-consumer plastics or from the advanced recycling of pre-consumer recovered feedstocks or plastics, and post-consumer plastics via mass balance attribution under a third-party certification system. The terms “recycled content” and “certified recycled” shall have the same meaning as “recycled plastic”.

(33) RECYCLING RATE.—The term “recycling rate” means the percentage of post-use materials recycled from the total post-use materials generated, as it is measured by the Environmental Protection Agency. Products marketed or sold as fuels or energy are not recycled materials for purposes of calculating the recycling rate.

(34) SOLID WASTE.—The term “solid waste” has the meaning given such term in section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903). Post-use plastics and recovered feedstocks that are collected, sorted, transported, stored, or processed for use in an advanced recycling facility using advanced recycling technologies or held at an advanced recycling facility prior to processing are not solid waste.

(35) THIRD-PARTY CERTIFICATION SYSTEM.—The term “third-party certification system” means an international and multi-national third-party certification system, which consists of a set of rules for the implementation of mass balance attribution approaches for advanced recycling of materials.

(a) Establishment.—Not later than 90 days after the date of enactment of this Act, the Administrator shall establish the National Plastics Recycling Standards Advisory Committee for a period of not less than 4 years, upon which the Administrator may renew the charter of the Committee pursuant to section 1013 of title 5, United States Code.

(b) Composition.—

(1) IN GENERAL.—The Committee shall be composed of 14 members who shall be appointed as follows:

(A) 2 members appointed by the Administrator.

(B) 3 members appointed by the Chairman of the Committee on Environment and Public Works of the Senate.

(C) 3 members appointed by the ranking minority member of the Committee on Environment and Public Works of the Senate.

(D) 3 members appointed by the Chairman of the Committee on Energy and Commerce of the House of Representatives.

(E) 3 members appointed by the ranking minority member of the Committee on Energy and Commerce of the House of Representatives.

(2) FAIR BALANCE OF MEMBERSHIP.—Not later than 60 days after finalization of the Committee roster, the Advisory Committee Management Officer, designated pursuant to section 1007 of title 5, United States Code, and the designated officer or employee of the Federal Government, designated pursuant to section 1009 of title 5, United States Code, shall prepare and submit a report to the Administrator confirming that the members appointed under paragraph (1) represents a fair balance between the points of views from each of the following:

(A) Companies that haul or manage municipal solid waste.

(B) Companies that manufacture plastic resin.

(C) Companies directly involved in the design, production, use, and recycling of plastic materials.

(D) Consumer brands and retail companies that sell end products utilizing plastic packaging directly to consumers.

(E) Municipalities that administer residential waste and recycling programs.

(F) Companies engaged in the advanced recycling of plastic packaging.

(G) Companies engaged in the mechanical recycling of plastic packaging.

(3) TERM.—

(A) IN GENERAL.—Except as provided in subparagraph (B), each member shall serve a term of 4 years.

(B) INITIAL STAGGERING.—The initial appointments made by the Administrator under paragraph (1) shall be for a term of 2 years.

(c) Duties.—

(1) STUDY TO DEVELOP NATIONAL PLASTIC RECYCLING STANDARDS.—

(A) IN GENERAL.—Not later than 1 year after its formation, the Committee shall begin conducting a study for the purpose of advising the Administrator in the establishment and implementation of the national plastic recycling standards.

(B) SOLICITATION.—In conducting the study under subparagraph (A), the Committee shall solicit information from relevant stakeholders, including—

(i) local government officials; and

(ii) representatives from the plastic, recycling, waste haulers, and advanced recycling industries.

(C) STUDY TOPICS.—The study conducted under subparagraph (A) shall evaluate and provide recommendations on the following topics:

(i) The elements to be included in the national plastic recycling standards.

(ii) Ways that the national plastic recycling standards may be better harmonized with international, multinational and State efforts, regulations, and chain of custody and certified mass balance methodologies to increase the efficiency and impact of the national plastic recycling standards.

(iii) The best practices and strategies developed by community recycling programs, including consumer outreach and education, and how and to what extent such practices and strategies can and should be—

(I) incorporated into the National Recycling Strategy;

(II) incorporated into the activities of Federal agencies to increase the national recycling rate; or

(III) potential strategies to encourage the development and implementation of efficient waste collection, sortation, pre-processing, and mechanical and advanced recycling technologies with respect to plastic materials.

(iv) Ways that the National Plastics Recycling Standards for sorted or partially sorted mixed materials containing post-use plastic may best support the increased use of advanced recycling technologies to create feedstocks for the production of circular plastics and be harmonized with, or exempted from, other Federal, State, and local laws to increase advanced recycling capacity.

(v) Ways in which the national plastic recycling standards may increase the supply of materials entering recycling systems and minimizing the incineration, landfilling, and improper disposal of materials in the environment.

(vi) Potential strategies to address materials that enter the recycling collection system that are not composed of post-use plastics that significantly and adversely impact the advancement of mechanical and advanced recycling processes from achieving annual mandates for recycled plastics in plastics packaging.

(vii) Any additional authorities or financial resources necessary for the Administrator to improve data collection and the standardization of reporting with regard to the total supply of plastic packaging to enable the analysis of reuse and recycling performance and trends.

(viii) The potential incorporation of advanced recycling and advanced recycling products into the National Recycling Strategy.

(ix) Ways that the National Recycling Strategy and other national recycling efforts may be better harmonized with multinational, international, State, and local regulations, programs, and certification programs.

(x) The potential expansion of the National Recycling Strategy to—

(I) improve and standardize collection and metrics;

(II) prioritize innovation in product design, post-use collecting, sorting, and processing;

(III) expand public space recycling;

(IV) improve existing recycling systems and capacities;

(V) enhance reporting for recycling, reuse, and compositing bio-based plastics; and

(VI) incorporate mass balance certification.

(xi) The benefits of innovative materials on durable goods and infrastructure, such as long-term pavement performance, emissions, plant and construction operations, infrastructure resiliency, and re-recyclability.

(xii) The environmental, social, and financial benefits of annual mandates for recycled plastics in plastics packaging and the benefits of third-party certification systems for mechanical and advanced recycling.

(xiii) Potential ways that the National Recycling Strategy may improve and optimize the use of certified compostable products.

(xiv) Appropriate financial incentives, increased tipping fees, and other mechanisms, such as packaging fees, to encourage increased collection, avoid wasteful dispositions of post-use plastic products and encourage the development and implementation of waste collection, sortation, pre-processing, and mechanical and advanced recycling technologies.

(xv) The impact of the use of the American Society for Testing and Materials Resin Identification Codes symbol on plastic products on the rate of recycling in the United States, and whether Federal standards for use of the symbol in consumer outreach and education would help achieve the plastic recycling goal set by the Administrator under the National Recycling Strategy.

(2) REPORT.—Not later than 15 months after the date on which the Advisory Committee Management Officer deems a fair balance of Committee membership under section 101(b)(2)(a), the Committee shall complete the study and submit to the Administrator a report on the study conducted under paragraph (1), including—

(A) the findings of the Committee; and

(B) the recommendations of the Committee.

(3) ADVISE ADMINISTRATOR.—In consultation with the Committee, the Administrator shall—

(A) establish training for awareness and implementation of the National Plastics Recycling Standards for employees of the Environmental Protection Agency; and

(B) develop educational materials and implement a nationwide campaign targeted toward helping residential, commercial, and industrial consumers understand the role of such consumers in implementing the National Plastics Recycling Standards.

(d) Funding.—There is authorized to be appropriated such sums as are necessary to carry out this section.

(a) Establishment.—Not later than 18 months after the date on which the Committee issues a report under section 101(c), the Administrator, in consultation with the relevant heads of Federal agencies and taking into consideration such report, shall establish the national plastic recycling standards for the purpose of supporting achievement of the National Recycling Strategy.

(b) Requirements.—The national plastic recycling standards established under subsection (a) shall contain the following:

(1) Specifications required for advanced recycling feedstocks to support conversion back to new chemicals, plastics, and other useful products.

(2) Minimum standards for municipal systems in which residents are charged for waste collection based on the amount of waste they throw away (Pay-As-You-Throw systems), infrastructure capacity to ensure jurisdictions are able to handle common materials and adjust to new waste streams, and household access to optimize the ability of all Americans to recycle, including the development of Federal grant programs to assist with the equitable access for all communities, including exurban, multi-family, and rural communities, to meet the minimum access standards.

(3) Minimum processing requirements to increase the recycling of post-use plastics.

(4) Systems, measures, and metrics to be used to analyze the effectiveness of the national plastic recycling standards, including recordkeeping and reporting requirements.

(5) Standards and guidelines for the testing, design, manufacture, use, performance, and re-recyclability of innovative material to be used in construction, preservation, rehabilitation, or reconstruction of infrastructure and long-term pavement, and including Federal grant programs for projects prone to flooding due to severe storms, storm surges, or projected sea level rise during the projected lifetime of the project.

(6) Educational programs to promote compliance with and support for the national plastic recycling standards, and awareness of plastics recycling with respect to different geographic, rural, and urban needs.

(7) Standards and data collection procedures to determine the annual supply of post-use plastics available for advanced recycling feedstocks.

(8) Standards for Federal, State, and municipal government and industry data collection, metrics, and reporting for reuse, recycling, composting, recovery, and disposal for the Environmental Protection Agency to measure the national recycling rate and report against the National Recycling Goal.

(c) Effective Date.—

(1) IN GENERAL.—The Administrator shall establish a date, no later than 3 years following promulgation of the National Recycling Standards, for the standards to go into effect.

(2) CONSIDERATIONS.—In establishing the effective date under paragraph (1), the Administrator shall take into consideration—

(A) the cost of achieving a circular economy for plastics;

(B) the feasibility of implementing the national plastic recycling standards, including the time needed to—

(i) obtain necessary permit approvals;

(ii) procure, install, and test control equipment; and

(iii) procure funding to implement infrastructure and access improvements, including the development and disbursement of Federal financial incentives;

(C) the availability of equipment, supplies, and labor;

(D) the potential reduction of solid waste in landfills, oceans, and the natural environment; and

(E) the potential net employment impacts.

(a) Study.—Not later than 90 days after the date of enactment of this Act, the Administrator shall seek to enter into appropriate arrangements with the National Academies of Sciences, Engineering, and Medicine (in this section referred to as the “National Academies”) under which the National Academies shall conduct a study that compares the resource use, resource efficiency, and carbon impact of products made of raw materials (including plastic, bio-based plastic, steel, aluminum, glass, textiles, wood, and paper) across the life cycle, including the production, transportation, packaging use, and any method of recovery, of such products.

(b) Report.—Not later than 2 years after the date of the enactment of this Act, the National Academies shall submit to Congress, the Administrator, the Secretary of Energy, and the Secretary of Commerce a report on the study conducted under subsection (a) that includes—

(1) the findings of such study; and

(2) recommendations based on such findings—

(A) that address concerns associated with climate change, including life cycle greenhouse gas emissions of products made with raw materials;

(B) with respect to any knowledge gaps that may require further scientific inquiry and studies; and

(C) on potential educational efforts to help residential, commercial, and industrial consumers understand the climate carbon footprint of such residential, commercial, and industrial consumers.

In this title:

(1) COMPLIANCE DEFICIT PERCENTAGE.—The term “compliance deficit percentage” means the amount of the mandate shortfall divided by the mandated quantity of recycled plastics as determined by Administrator.

(2) MANDATE SHORTFALL.—The term “mandate shortfall” means, in pounds, the sum of—

(A) the total pounds of plastics used in an annual plastics packaging portfolio of a marketer multiplied by the applicable mandate for recycled plastics, less

(B) the pounds of recycled plastics actually used, as determined by the Administrator, in such annual plastics packaging portfolio.

(3) MINIMUM MANDATE.—The term “minimum mandate” means the requirement of having a minimum percentage of a plastics packaging portfolio of a marketer that is made of recycled plastics under section 202(a).

(4) MINIMUM PERCENTAGE.—The term “minimum percentage” means the percentage that is determined by the Administrator under section 202(b)(2).

(5) PLASTICS PACKAGING PORTFOLIO.—The term “plastics packaging portfolio” means a marketer’s total annual portfolio of plastics packaging, including packaging made from virgin and recycled resins sold, marketed, and distributed in the United States.

(a) Minimum mandate.—Not later than 180 days after the date of enactment of this Act, and for each calendar year thereafter subject to paragraph (2), if applicable, the Administrator shall set regulations requiring a minimum percentage of a plastics packaging portfolio of a marketer containing plastics packaging that includes recycled plastics in accordance with this section.

(b) Minimum percentage.—

(1) 30 BY 30.—In carrying out the minimum mandate under subsection (a), the Administrator shall increase the minimum percentage pursuant to paragraph (2) to a maximum of 30 percent by 2030.

(2) EVALUATION PROCESS.—

(A) ESTABLISHMENT.—Not later than 1 year after the date of enactment of this Act, the Administrator shall establish an evaluation process under which the Administrator shall evaluate the minimum percentage that is in effect at the time of beginning the evaluation process to determine whether such minimum percentage should be adjusted based on—

(i) the supply of on-specification recycled post-use plastics feedstocks available for mechanical or advanced recycling, calculated based on the data the Administrator shall require States to annually submit regarding the amount of available incoming recycled feedstocks by categories of post-use plastics, and shall take into consideration the proximity of the available recycled feedstocks to the available recycling infrastructure, including either mechanical or advanced recycling facilities;

(ii) the annual data collected by the Administrator pursuant to reporting requirements developed pursuant to section 203 to evaluate the Nation’s advanced recycling capacity;

(iii) changes in market conditions, including supply and demand for recycled post-use plastics feedstocks, collection rates, and post-use plastic availability both domestically and globally;

(iv) the capacity of advanced and mechanical recycling infrastructure;

(v) the supply of on-specification recycled feedstocks available for mechanical or advanced recycling to be used in plastics packaging that contains drugs, medical devices, cosmetics, medical food, or infant formula (as such terms are defined in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.)) or any other product packages with health and safety related recycled plastics restrictions;

(vi) any consultations with the National Plastics Recycling Standards Committee or experts from the scientific, process engineering, economic development, plastics, recycling, waste haulers, and recycling industries; and

(vii) whether there has been implementation of policies to support or help finance the development of collection and sorting infrastructure for post-use plastic.

(B) EVALUATION.—Not later than 1 year after the date on which the Administrator establishes the evaluation process under subparagraph (A), and every two years thereafter, the Administrator shall evaluate the minimum percentage that is in effect at the time of the evaluation using the process established under such subparagraph and determine whether such minimum percentage that is in effect should increase, decrease, or stay the same for the following calendar year.

(C) ACCELERATED SCHEDULE.—Upon receipt of a petition signed by at least 55 percent of all marketers subject to this section, the Administrator may initiate an evaluation on the date that is at least 1 year after the date on which the Administrator conducted the previous evaluation.

(c) Third-Party certification.—

(1) IN GENERAL.—The Administrator shall identify international standards of third party certification bodies including, but not limited to, as determined under paragraph (2) that certify the percentage of recycled plastics in a plastics packaging portfolio for the purpose of enforcing the minimum mandate under section 203, in accordance with this paragraph.

(2) APPROVED CERTIFICATION SYSTEMS LIST.—Not later than 180 days after the enactment of this Act, the Administrator shall issue a list that contains certification systems that:

(A) Apply chain of custody, attribution, mass balance, and certified mass balance attribution for identifying the percentage of recycled plastics in a plastics packaging portfolio.

(B) Are approved by the Administrator to certify the percentage of recycled plastics in a plastics packaging portfolio of a marketer. These systems include those run by the following organizations:

(i) International Sustainability and Carbon Certification.

(ii) Underwriter Laboratories.

(iii) SCS Global Services.

(iv) Roundtable on Sustainable Biomaterials.

(v) Ecocycle.

(vi) REDcert.

(3) ANNUAL UPDATE.—Not later than 1 year after the date on which the Administrator issues the approved certification systems list under subparagraph (B), and annually thereafter, the Administrator shall update the approved certification systems list to incorporate new certification systems satisfying the requirements in section 202(c)(2)(A).

(d) Timeline.—Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a timeline and reporting procedures by which—

(1) a marketer submits documents prepared by an approved third-party certification body as identified under section 202(c) that details the percentage of recycled plastics used within the plastics packaging portfolio of the marketer;

(2) the Administrator makes a determination on such documents; and

(3) a marketer, upon certification, may begin to label under section 203 of this Act.

(e) Applicability.—

(1) IN GENERAL.—The minimum mandate shall apply to the total annual plastics packaging portfolio of a marketer excluding plastics packaging that is—

(A) manufactured from certified compostable products; and

(B) subject to electrostatic discharge restrictions.

(2) VOLUNTARY INCLUSION.—For any marketer that has plastic packaging that is excluded under paragraph (1), such marketer may voluntarily include such excluded plastic packaging for the purpose of determining the total annual plastics packaging portfolio under paragraph (1).

(a) In general.—Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a plastics recycling accounting and labeling program (in this section referred to as the “Program”) to increase the use and reliability of recycled plastics for plastics packaging.

(b) Duties of Administrator.—Under the Program, the Administrator shall:

(1) Outline the Administrator’s oversight authority over marketers in the plastics recycling accounting and labeling programing, including the following:

(A) The certification process, including the Administrator’s procedures for confirmation that a marketer has met the mandates for recycled plastics in plastics packaging by satisfying the annual requirements of an approved certification system. The certification process shall include a one-page final determination from the Administrator confirming the marketer met the mandates for recycled plastics in plastics packaging through an approved certification system, which shall be automatically and electronically conveyed to the Federal Trade Commission and the marketer.

(B) The Administrator’s obligation to publish basic information about each marketer’s efforts to meet the minimum mandates, including the marketer’s name and the percent of recycled plastics achieved during past certifications, while simultaneously protecting all financial, production, or sales data from each marketer that is claimed to confidential business information.

(C) Enforcement procedures and penalties for prohibited acts performed by marketers with respect to the certification process developed pursuant to section 202(d).

(i) The plastics recycling accounting and labeling program’s definition of “prohibited acts” shall include violations of record keeping requirements, knowing misrepresentations by marketers in the certification process, and knowing distribution in commerce of any plastics packaging with the label developed pursuant to paragraph (3).

(ii) If the Administrator has reason to believe a marketer has undertaken a prohibited act, the Administrator shall issue a notice of noncompliance that may be corrected within 30 days. The Administrator may issue a civil penalty for knowing violations. The civil penalties shall not exceed the sum of $25,000 for every day of such violation. Any violation with respect to a regulation prescribed pursuant to the plastics recycling accounting and labeling program which establishes a regulatory standard based upon a multiday averaging period shall constitute a separate day of violation for each and every day in the averaging period.

(D) Procedures for the Administrator to notify the Federal Trade Commission when products produced by marketers are identified in retail without proper labeling, as they shall be developed pursuant paragraph (3) or with labeling based on misrepresentations or any prohibited acts.

(2) Develop recordkeeping requirements and procedures for marketers involving the transfer of products between parties that is synthesized with, but not duplicative of the requirements of the approved certification system, and is auditable by the Administrator. For purposes of this section, the term “transfer of product between parties” means the transfer of credits assigned to a post-use plastic product through an approved certification system to another approved certification system through a “like-for-like product exchange” without requiring the physical movement of the post-use plastic product between the systems, subject to the following limitations:

(A) The exchanged products to which the post-use plastic product has been attributed must be equivalent.

(B) The mass balance of the two systems and the transfer must be independently verifiable. Transfer of credits has the benefit of maximizing the market opportunities for recycled material without driving increased costs and related greenhouse gas emissions to transport the same material between two locations.

(3) Develop a label that shall include the language “____% EPA Certified Balanced Recycled Plastics” that can be placed on plastics packaging by marketers satisfying the annual certification process set forth in section 202 to create wide-scale public awareness of products satisfying the plastics recycling accounting and labeling program and assisting with the Nation’s efforts to achieve the National Recycling Goal.

(4) Develop procedures for placement of the label on a variety of plastics packaging produced by marketers, taking into consideration alternative labeling processes for various types of plastics packaging.

(5) Develop public education and awareness initiatives of the label, including providing special outreach to small businesses, and the interconnection between the National Recycling Goal and consumers purchasing products containing recycled plastics from marketers.

(c) Enforcement.—Beginning on January 1, 2030, the Administrator shall enforce the minimum mandate by conducting audits and assessing administrative penalties against marketers that are not in compliance with this title or in accordance with this section. Beginning March 1, 2030, and annually thereafter, the Administrator shall invoice any assessed administrative penalties for the previous calendar year based on the mandate for recycled plastics of the previous calendar year. The Administrator shall calculate the amount of the penalty based upon the amount in pounds in the aggregate of virgin and recycled plastics material used by the marketer in its plastics packaging portfolio sold or offered for sale in the United States. A marketer that has exceeded the mandate for recycled plastics may indicate the actual percentage of recycled plastics it achieved in its annual plastics packaging portfolio on the label developed pursuant to section 203 of this Act.

(d) Requirements.—Not later than January 1, 2030, the Administrator shall, by rulemaking, establish a process that—

(1) reviews information provided by a marketer;

(2) determines the mandate shortfall and the compliance deficit percentage for each marketer; and

(3) beginning on March 1, 2030, invoicing administrative penalties to marketers that are not in compliance.

(e) Administrative penalty.—

(1) IN GENERAL.—A marketer that has a mandate shortfall greater than zero shall be, as determined by the Administrator, not in compliance with the minimum mandate and subject to an administrative penalty to be collected annually.

(2) PENALTY FUND.—Penalties received under this subsection shall be deposited in a special fund, established by the Administrator, to be used for enhancing educational and infrastructure grants provided available to municipalities pursuant to section 102 to promote compliance with the National Plastics Recycling Standards.

(3) PENALTY PAYMENT SCHEDULE.—A marketer that is assessed a penalty pursuant to this subsection shall be permitted to pay those penalties to the Administrator in quarterly installments or arrange an alternative payment schedule subject to the approval of the Administrator.

(4) PENALTY AMOUNT.—

(A) IN GENERAL.—In assessing an administrative penalty against a noncompliant marketer, the Administrator shall calculate such penalty in the following manner:

(i) For a penalty assessed in 2030, the penalty shall be 5 cents per pound of the mandate shortfall.

(ii) For a penalty assessed in subsequent years, if a noncompliant marketer—

(I) has a compliance deficit percentage of 25 percent or less, the penalty shall be 5 cents per pound of the mandate shortfall;

(II) has a compliance deficit percentage of 50 percent or less, but greater than 25 percent, the penalty shall be 10 cents per pound of the mandate shortfall;

(III) has a compliance deficit percentage of 75 percent or less, but greater than 50 percent, the penalty shall be 15 cents per pound of the mandate shortfall; and

(IV) has a compliance deficit percentage that is greater than 75 percent, the penalty shall be 20 cents per pound of the mandate shortfall.

(B) PRORATED PENALTIES.—For penalties assessed under subparagraph (A)(i)(II), a penalty that is 10 cents or higher per pound of the mandate shortfall may be lowered by the Administrator by 5 cents per pound each time a noncompliant marketer for which the penalty was assessed makes payments that decreases the compliance deficit percentage to the next percentage bracket.

(5) ADJUSTMENTS.—Not later than after the date on which the Administrator begins to enforce the minimum mandate, the Administrator shall evaluate the penalties assessed for the year prior to determine if the penalty amounts under paragraph (4) requires adjustment to prevent penalty amounts that are—

(A) too low, such that marketers would have a financial incentive to pay the fines instead of attempting to meet the minimum mandate; or

(B) too high, which may prevent marketers from meeting the minimum mandate despite sincere efforts.

(f) Audits.—

(1) The Administrator may conduct audits and investigations and take an enforcement action against a marketer for the purpose of ensuring compliance with the mandates for recycled plastics. The Administrator may take an enforcement action against a marketer that fails to pay or underpays the assessed or audited administrative penalty only after notice and hearing terms developed by the Administrator.

(2) The Administrator shall keep confidential all business trade secrets and proprietary information about manufacturing processes and equipment that the Administrator gathers or becomes aware of through the course of conducting audits or investigations pursuant to subsection (f)(1). Business trade secrets and proprietary information obtained pursuant to this subdivision shall not be subject to the Freedom of Information Act.

(3) A marketer may obtain a copy of the Administrator’s audit of that marketer conducted pursuant to subsection (f)(1).

The provisions of this Act shall supersede any and all laws of any State or political subdivision of a State insofar as they may now or hereafter relate to any mandates for recycled plastics or recycled content, or restrictions on the use of advanced recycling, mass balance, labeling programs (as related to recycled plastics or recycled content). No State or political subdivision thereof shall establish or enforce any recycling mandates or recycling standards that are lesser, conflicting, or inconsistent with the mandates or standards established under this Act.