Bill Analysis - House Bill 230 NC Managing Environmental Waste Act of 2021 (House Commerce, March 23, 2021)
Summary
A legislative analysis of House Bill 230: NC Managing Environmental Waste Act of 2021, First Edition, for House Commerce, dated March 23, 2021, prepared by Aaron McGlothlin, Staff Attorney. The overview says the bill would allocate 5% of the revenue generated by the solid waste disposal tax to cities and counties that provide plastics recycling services and food service ware reduction programs. It would also restore certain annual reporting requirements on recycled content purchases and materials collected for recycling, and require the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources to study food service ware. Section 1 of the bill would become effective July 1, 2022, and the remainder when it becomes law.
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“Bill Analysis - House Bill 230 NC Managing Environmental Waste Act of 2021 (House Commerce, March 23, 2021).”
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HOUSE BILL 230:
NC Managing Environmental Waste Act of 2021.
2021-2022 General Assembly
Committee: House Commerce. If favorable, re-refer to Date: March 23, 2021
Environment. If favorable, re-refer to Rules,
Calendar, and Operations of the House
Introduced by: Reps. Warren, Richardson Prepared by: Aaron McGlothlin
Analysis of: First Edition Staff Attorney
OVERVIEW: House Bill 230 would enact several measures related to food service ware as follows:
• Allocate 5% of the revenue generated by the solid waste disposal tax to cities and counties in the
State that provide plastics recycling services and food service ware reduction programs within
their jurisdictions.
• Restore certain annual reporting requirements concerning the amounts and types of materials
and supplies with recycled content purchased and the amounts and types of materials collected
for recycling by State agencies, community colleges, and local school administrative units.
• Require the Joint Legislative Oversight Committee on Agriculture and Natural and Economic
Resources (Committee) to study the issue of food service ware.
• Require the Legislative Services Officer to evaluate and implement opportunities to reduce the
use of food service ware in food establishments operated by the General Assembly.
• Require the Division of Services for the Blind (Division), within the Department of Health and
Human Services to implement a pilot program to eliminate the use of food service ware at five
food service establishments operated by State agencies.
BILL ANALYSIS:
Section 1: Under current law, a tax of $2 per ton is imposed on waste disposed of in municipal solid waste
and construction and demolition debris landfills. The proceeds of the tax are distributed as follows:
• 50% of the proceeds must be credited to the Inactive Hazardous Sites Cleanup Fund, and the
Secretary of the Department of Environmental Quality is required to fund assessment and cleanup
of pre-1983 landfills (aka "pre-reg" and "orphan" landfills).
• 37.5% to cities and counties in the State on a per capita basis solely for solid waste management
programs and services.
• 12.5% to the General Fund.
Section 1 of the bill would modify the 12.5% allocation currently given to the General Fund, to allocate
5% to cities and counties that provide plastics recycling services within their jurisdictions. Specifically,
funds distributed must be used for plastics recycling and food service ware waste reduction programs and
services, including for the procurement of alternatives to food service ware to be used by the city or county.
Legislative Analysis
Jeffrey Hudson
Division
Director H230-SMCC-3(e1)-v-2 919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
House Bill 230
Page 2
Section 2 of the bill would restore certain reporting requirements applicable to State agencies, community
colleges, and local school administrative units concerning the amounts and types of materials and supplies
with recycled content purchased annually by these entities, and the amounts and types of materials
collected for recycling annually by these entities, and require the Department of Environmental Quality
(DEQ) to report this data to the Environmental Review Commission (ERC) and the Joint Legislative
Commission on Governmental Operations. These reporting requirements were repealed in 2009 and 2010.
Section 3 of the bill would direct the Joint Legislative Oversight Committee on Agriculture and Natural
and Economic Resources to study the issue of food service ware, including examination of all the
following matters:
• The environmental impacts of plastics pollution.
• The State's current requirements for plastics recycling.
• Estimates of the proportionate volume of plastics recycled versus plastics disposed of in landfills
in the State.
• Recycling markets and available information on the fate of plastics collected for recycling in the
State, including data on plastics used as feedstock for in-State recycling, and national and
international markets.
• Pending and enacted legislation in other states to regulate food service ware, including bans on
specific types of food service ware.
• The impact that bans on specific types of food service ware have had on people with disabilities.
• Current private sector initiatives to reduce plastics pollution and additional financial and market
tools that may be employed by private sector interests for this purpose.
• Alternatives to use of food service ware for serving or transporting food and beverages.
• New technologies for plastics recycling and waste reduction.
The bill would require the Committee to consult with stakeholders in conducting the study, including
DEQ, the Department of Health and Human Services, the Department of Administration, representatives
of the environmental community, the North Carolina Retail Merchants Association, and the North
Carolina Beverage Association. The Committee would be required to report its findings and
recommendations, including any legislative proposals, to the 2022 Regular Session of the 2021 General
Assembly upon its convening.
Section 4 would require:
• The Legislative Services Officer to evaluate all opportunities to reduce the use of food service
ware in food establishments operated by the General Assembly and implement such measures at
the earliest date that (i) does not result in disposal, prior to use, of food service ware already
procured on the date this act becomes law and (ii) does not impair contracts for purchase of such
food service ware in effect on the date this act becomes law. The Legislative Services Officer
must issue a preliminary report on implementation of the requirements of this section to the ERC
no later than September 1, 2021, and shall provide a final report to the Commission no later than
March 1, 2022.
• The Division to implement a pilot program to eliminate the sale or provision of food or beverages
for consumption on or off the premises, in or with food service ware at State agencies or agencies
of a political subdivision of the State that is using State funds. In implementing this pilot, the
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Page 3
Division must identify five food service establishments operated by State agencies to implement
measures to eliminate food service ware at the earliest possible date that (i) does not result in
disposal, prior to use, of food service ware already procured by the agency on the date this act
becomes law and (ii) does not impair contracts for purchase of such food service ware in effect
on the date this act becomes law. The Division must issue a preliminary report on implementation
of the requirements of this section to the ERC no later than September 1, 2021, and shall provide
a final report to the Commission no later than March 1, 2022.
For purposes this act, the term "food service ware" means noncompostable products used by a food service
provider that are designed for one-time use for serving or transporting prepared, ready-to-consume food
or beverages, including plates, cups, bowls, trays, utensils, straws, cup lids, and hinged or lidded
containers.
EFFECTIVE DATE: Section 1 of the bill would become effective July 1, 2022. The remainder of the
bill would be effective when it becomes law.
Jennifer McGinnis and Kyle Evans, Staff Attorneys, contributed substantially to this summary.
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