Section 096-428-10 - Producer FeesA producer must pay fees based on the packaging material it produces each year. The SO must invoice producers by July 1st of each calendar year, and a producer must pay fees owed in accordance with this Section by September 1st of each calendar year. The SO's contract with the Department must define, or provide a mechanism for defining, late fees.
A.Fees for Producers Other Than Low-Volume Producers.(1) Annual registration fee. Annual registration fees must cover the $300,000 fee for Department administration and the SO's annual budget. A producer owes a share of this cost for every 15 tons of packaging material produced and not managed through an alternative collection program. A share is equal to the sum of $300,000 and the SO's annual budget divided by the total number of shares owed, as determined from the reports of producers other than low-volume producers that are received by the reporting deadline.(2) Packaging material type fees. (a) For a packaging material type that is readily recyclable, the producer must pay, per ton produced, the average per ton cost for recycling, reusing, and composting that packaging material type during the prior calendar year. The average per ton cost is the total amount to be reimbursed to municipalities for recycling, reusing, and composting the packaging material type during the prior calendar year divided by the tons of the packaging material type recycled, reused, and composted by participating municipalities.(b) For a packaging material type that is not readily recyclable, the producer must pay, per ton produced, two times the average per ton cost of the most expensive readily recyclable packaging material type during the prior calendar year. If goals for the percent of readily recyclable packaging material established under Section 3(A)(6) are unmet, the producer must pay three, four, or five times the average per ton cost of the most expensive readily recyclable packaging material type, as detailed below.(i) From calendar year 2031 to 2040, if the goal in Section 3(A)(6) is unmet, the producer must pay three times the per ton cost of managing the most expensive readily recyclable packaging material type.(ii) From calendar year 2041 to 2050,1. If less than 50% of the total packaging material reported the prior calendar year was readily recyclable, a producer must pay four times the per ton cost of managing the most expensive readily recyclable packaging material type; or2. If at least 50% but less than 75% of the total packaging material reported the prior calendar year was readily recyclable, a producer must pay three times the per ton cost of managing the most expensive readily recyclable packaging material type.(iii) From calendar year 2051 onward, producers must pay five times the per ton cost of managing the most expensive readily recyclable packaging material type.(3) Incentive fees. Beginning the third calendar year in which producers report under this Chapter, a producer must pay the following incentive fees, as applicable. These fees are relative and additional to packaging material type fees. (a) Post-consumer recycled material fee. For packaging material that is not exempt from the post-consumer recycled material fee, and for which a producer does not meet post-consumer recycled material goals, as specified in Section 3(A)(9), the producer must pay a per ton fee equal to 10% of the packaging material type fee, unless the post-consumer recycled material goal for the packaging material type's base material is unmet. Beginning the calendar year following that in which the goal is unmet, and continuing every year in which the goal remains unmet, the percentage used to determine the post-consumer recycled material fee must be 10% plus the difference between the percent post-consumer recycled material goal and the realized percent post-consumer recycled material, by base material, as reported by producers, collectively, during the prior calendar year, in accordance with Section 9(B).(b) Toxicity fee. For a packaging material type for which a producer is unable to provide a certificate from the entity or entities that manufacture the packaging material that attests to no intentional addition of toxics, it must pay a per ton fee equal to 10% of the packaging material type fee.(c) Reduction of litter fee. For a brand that consistently represents one of the top five brands collected during a litter audit for three consecutive calendar years, a producer must pay a fee equal to 10% of its annual registration fee. In lieu of this fee, a producer or group of producers may engage in an anti-litter campaign in the State that is at least as expensive as the litter fees due. The fees will be charged and upon receiving proof of completion of the campaign and its costs, the SO will subtract the amount of the previously paid litter fee from a producer's next invoice.(d) Labeling. For packaging material that is labeled to indicate use of a material management pathway that is not available throughout the State, the producer must pay a per ton fee equal to 20% of the packaging material type fee. (i) For packaging material labeled in a way that suggests it is recyclable, a material management pathway is available if the packaging material is readily recyclable or if there are alternative collection programs recycling the packaging material type in every county.(ii) For packaging material labeled in a way that suggests it is compostable, a material management pathway is available if there are alternative collection programs composting the packaging material in every county.(iii) For packaging material labeled in a way that suggests it is reusable, a material management pathway is available if it is reusable packaging material, as defined in Section 2(Z).(e) Weight not recycled. For the weight of packaging material that will not be recycled, as measured by the difference between the reporting points in Sections 9(B)(5) and 9(B)(4), a producer must pay a per ton fee equal to 30% of the packaging material type fee. This fee is only applied to a packaging material type designated readily recyclable.B.Fees for Low-Volume Producers. A low-volume producer is required to pay no more than $500 per ton of packaging material and no more than $7,500 in total annual fees to the SO.(1) If a low-volume producer reports in accordance with Section 9(C)(1), the producer must pay $500 per ton of packaging material produced.(2) If a low-volume producer reports in accordance with Section 9(C)(2), the producer must pay $500 per ton of packaging material produced or the amount owed under Section 10(A)(2), whichever is less.C.Adjustment to Fees for Tons Collected Through an Alternative Collection Program Approved Pursuant to 38 M.R.S. §2146(8). Each calendar year, the SO must adjust a producer's fees to account for the tons of each packaging material type managed through an alternative collection program. If, in its annual report, an alternative collection program attributes tons of a packaging material type to a producer, the tons of each packaging material type attributed must be subtracted from the tons of the packaging material type produced, and producer fees adjusted accordingly. If tons managed through an alternative collection program lower the obligation of a producer other than a low-volume producer such that the producer's payment to the SO is for fewer than 15 tons of packaging material, the producer is still not considered a low-volume producer.
(1) In the case of producers other than low-volume producers, the SO must:(a) Subtract the tons of a packaging material type attributed to a producer from the tons of the packaging material type produced for the purpose of determining the producer's share of the annual registration fee in accordance with Section 10(A)(1);(b) Subtract the tons of a packaging material type attributed to a producer from the tons of the packaging material type produced for the purpose of determining the packaging material type fees owed by the producer in accordance with Section 10(A)(2); and(c) Calculate incentive fees owed under Section 10(A)(3) for total tons produced and multiply each result by the percent of the packaging material type produced that was not collected through an alternative collection program.(2) In the case of a low-volume producer, the SO must reduce the producer's tons of each packaging material type produced by the tons of that packaging material type attributed to that producer by the alternative collection program for the purpose of determining fees owed in accordance with Section 10(B)(2). In order for a low-volume producer to receive credit, it must report in accordance with Section 9(C)(2). A producer cannot receive credit for managing more tons of a packaging material type than it produced.
06-096 C.M.R. ch. 428, § 10