[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Senate]
[Pages 5194-5197]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. FEINSTEIN:
  S. 2217. A bill to designate the facility of the United States Postal 
Service located at 3101 West Sunflower Avenue in Santa Ana, as the 
``Hector G. Godinez Post Office Building''; to the Committee on 
Governmental Affairs.
  Mrs. FEINSTEIN. Mr. President, I rise to ask my colleagues to support 
a bill to name the Santa Ana, CA Post Office as the ``Hector G. Godinez 
Post Office Building.'' I introduced similar legislation the during the 
last session of Congress, and I hope, with the Senate's support, it 
will become law during this session.
  Hector Godinez, who passed away in May of 1999, was a true leader in 
his community of Santa Ana, CA. He was a pioneer in the United States 
Postal Service rising from letter carrier to become the first Mexican-
American to achieve the rank of District Manager within the United 
States Postal Service. He served with honor in World War II, was a 
ardent civil rights activist and an active participant in civic 
organizations and local government.
  After graduation from Santa Ana High School, Mr. Godinez enlisted 
into the armed services and was a tank commander in World War II under 
General George Patton. For his service, he earned a bronze star for 
bravery under fire and was also awarded a purple heart for wounds 
received in battle.
  Upon his return home in 1946, Mr. Godinez started his first of 48 
years of distinguished service as a United States postal worker.
  Hector Godinez was a true pillar within the Santa Ana community 
devoting his tireless energy to such civic groups as the Orange County 
District Boy Scouts of America, Santa Ana Chamber of Commerce, Orange 
County YMCA and National President of the League of United Latin 
American Citizens, one of the country's oldest Hispanic civil rights 
organizations.
  On behalf of the Godinez family and the people of Santa Ana, CA, it 
is my pleasure to introduce this bill to name the Santa Ana, CA Post in 
his honor.
                                 ______
                                 
      Mr. JEFFORDS:
  S. 2220. A bill to amend the Solid Waste Disposal Act to require 
implementation by brand owners of management plans that provide refund 
values for certain beverage containers; to the Committee on Environment 
an Public Works.
  Mr. JEFFORDS. Mr. President, I rise today in celebration of Earth Day 
to introduce the National Beverage Producer Responsibility Act of 2002. 
This legislation will increase recycling, reduce litter, save energy, 
create jobs, decrease the generation of waste and proliferation of 
landfills, and supply recyclable materials for a high-demand market.
  The estimated 1999 recycling rate for aluminum, glass and plastic 
beverage containers was 41 percent when measured by units and 30 
percent when measured by weight. This is unacceptable. We have many 
laws in place holding industries responsible for their actions; the 
beverage industry should not be exempt.
  The arguments for increasing the beverage container recycling rate to 
80 percent could not be more timely. This redemption rate would save 
the equivalent of 640 million barrels of oil in the next decade. Based 
on 1999 figures, recycled containers accounted for a reduction of 
greenhouse gas emissions by 4,093,000 metric tons, or about 79 pounds 
for each of 103.9 million households in the U.S. Analysis shows that 
land filling the containers recycled in 1999 would have required the 
use of about 20 million cubic yards of landfill space. A single 
landfill of this size, with a depth of 300 feet, would cover an area of 
about 40 acres. Recycling is an easy way to ease our dependence on 
foreign oil, reduce greenhouse gas emissions, and conserve natural 
resources.
  Ten States, including Vermont, attest to the success of deposit 
legislation, commonly called bottle bills. Vermont, whose law passed in 
1972, has one of the highest redemption rates in the nation, 95 to 98 
percent of deposit-bearing containers are recycled. The popularity 
behind the issue grows every year; thirty bottle bills were introduced 
this year in State legislatures across this country.
  The National Beverage Producer Responsibility Act of 2002 is a new 
approach to the traditional bottle bill legislation, which prescribes 
specific roles and responsibilities for retailers and distributors. 
Some believe that these prescriptive provisions constrain the industry 
from innovating more cost-effective solutions to the beverage container 
management challenge.
  The National Beverage Producer Responsibility Act sets a performance 
standard which industry must meet and allows industry the freedom to 
design the most efficient deposit-return program to reach the standard. 
By providing beverage companies the flexibility to structure and 
operate their own container recovery programs, this legislation simply 
extends the beverage company's ``supply chain'' to include the 
management of empty containers after consumption. This approach is 
appealing because it reduces the administrative burden on government 
and takes full advantage of the business skills of industry.
  Specifically, the National Beverage Producer Responsibility Act 
would: establish a measurable performance standard of 80% recovery of 
used, empty beverage containers for recycling or reuse; establish a 
minimum refundable deposit, of 10 cents, as the economic incentive for 
consumers to recycle; require beverage brand-owners, as a condition of 
sale of their product, to develop and submit to the Environmental 
Protection Agency a Beverage Container Management Plan, within 180 days 
of the law's implementation; establish consequences for failing to 
submit, implement and operate the approved Program and achieve the 
legislated Performance Standard; and establish provisions for 
evaluation and monitoring of the industry's performance.
  I look forward to holding a hearing on this legislation this summer 
in the Senate Environment and Public Works Committee.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2220

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Beverage Producer 
     Responsibility Act of 2002''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the beverage industry has an established and effective 
     marketing infrastructure that provides a wide range of 
     beverage products at affordable prices to consumers in the 
     United States;
       (2) the absence of a beverage industry infrastructure for 
     recovering used beverage containers has--
       (A) placed undue burdens on local waste authorities;
       (B) failed to provide any incentive for the beverage 
     industry to reduce waste; and
       (C) resulted in tens of billions of unrecycled beverage 
     containers per year, including 114,000,000,000 unrecycled 
     beverage containers in 1999;
       (3) of particular concern--
       (A) glass beverage containers are difficult and costly to 
     recycle through municipal curbside programs because of 
     breakage;
       (B) valuable beverage container types are being replaced 
     with low-value plastics and composite packaging; and
       (C) removing glass or other valuable beverage container 
     types from curbside programs has been found to reduce the 
     public costs of those programs;

[[Page 5195]]

       (4) an efficient, industry-operated system of beverage 
     container collection, recycling, and reuse would--
       (A) reduce the overall burden placed on taxpayers and 
     municipal waste management systems; and
       (B) shift the responsibility for that collection, 
     recycling, and reuse to beverage producers and consumers;
       (5) deposit systems, originally devised by the beverage 
     industry to recover used bottles, have been shown to be an 
     effective and sustainable means for recovering used beverage 
     containers, especially the increasing proportion of beverage 
     containers the beverages contained by which are consumed away 
     from the home;
       (6) greater reuse and recycling of beverage containers 
     would--
       (A) significantly improve the energy and emissions 
     performance of the beverage industry of the United States; 
     and
       (B) in each year, conserve an amount of electrical energy 
     equivalent to that required to serve millions of homes in the 
     United States;
       (7) 10 States have enacted and implemented laws designed to 
     protect the environment, conserve energy and material 
     resources, and reduce waste by requiring--
       (A) beverage consumers to pay a deposit on the purchase of 
     beverage containers; and
       (B) the beverage industry to pay a refund on used beverage 
     containers that are returned for reuse and recycling;
       (8) those laws--
       (A) enjoy strong public support; and
       (B) have proven to be effective in achieving high rates of 
     beverage container reuse and recycling;
       (9) a national standard for beverage container reuse and 
     recycling would ensure that beverage consumers in all regions 
     of the United States would enjoy access to beverage container 
     reuse and recycling services;
       (10) a beverage container reuse and recycling system 
     designed by brand owners could--
       (A) be seamlessly integrated with the national and regional 
     marketing systems of the brand owners;
       (B) maximize efficiency of the brand owners; and
       (C) minimize unproductive costs of compliance with 
     requirements of several different recycling programs;
       (11) a national system of beverage container reuse and 
     recycling is consistent with the intent of the Solid Waste 
     Disposal Act (42 U.S.C. 6901 et seq.); and
       (12) this Act is consistent with the goals established by 
     the Administrator of the Environmental Protection Agency, 
     including the national goal of 35 percent source reduction 
     and recycling by 2005.

     SEC. 3. BEVERAGE CONTAINER REUSE AND RECYCLING.

       (a) In General.--The Solid Waste Disposal Act (42 U.S.C. 
     6901 et seq.) is amended by adding at the end the following:

          ``Subtitle K--Beverage Container Reuse and Recycling

     ``SEC. 12001. DEFINITIONS.

       ``In this subtitle:
       ``(1) Beverage.--
       ``(A) In general.--The term `beverage' means a nonalcoholic 
     or alcoholic carbonated or noncarbonated liquid that is 
     intended for human consumption.
       ``(B) Exclusions.--The term `beverage' does not include 
     milk or any other dairy or dairy-derived product.
       ``(2) Beverage container.--The term `beverage container' 
     means a container that--
       ``(A) is constructed primarily of metal, glass, plastic, or 
     paper (or a combination of those materials);
       ``(B) has a capacity of not more than 1 gallon of liquid; 
     and
       ``(C) on or after the date of enactment of this subtitle--
       ``(i) may contain or contains a beverage; and
       ``(ii) is offered for sale or sold in interstate commerce.
       ``(3) Beverage container agency.--The term `beverage 
     container agency' means, as determined by a brand owner--
       ``(A) the brand owner; or
       ``(B) an entity appointed by the brand owner to act as an 
     agent on behalf of the brand owner.
       ``(4) Brand owner.--The term `brand owner' means a person 
     that owns the trademark for, manufactures, distributes, or 
     imports for resale in interstate commerce, a beverage sold in 
     a beverage container.
       ``(5) Management plan.--The term `management plan' means a 
     management plan submitted under section 12004.
       ``(6) Recovery rate.--The term `recovery rate' means the 
     percentage obtained by dividing--
       ``(A) the number of beverage containers of a brand owner 
     returned for a refund under section 12005(b)(2) in a calendar 
     year; by
       ``(B) the number of beverage containers of the brand owner 
     for which a deposit was collected under section 12005(a)(1) 
     in the calendar year.
       ``(7) Refund value.--The term `refund value' means the 
     refund value of a beverage container determined in accordance 
     with section 12006.
       ``(8) Return site.--The term `return site' means an 
     operation, facility, or retail store, or an association of 
     operations, facilities, or retail stores, that--
       ``(A) is identified in an approved management plan; and
       ``(B) is operating under contract entered into by the 
     return site and a beverage container agency to collect and 
     redeem empty beverage containers of 1 or more brand owners.
       ``(9) Seller.--
       ``(A) In general.--The term `seller' means a person that 
     sells a beverage in a beverage container.
       ``(B) Inclusions.--The term `seller' includes all members 
     of the supply chain.
       ``(10) Unbroken beverage container.--The term `unbroken 
     beverage container' includes a beverage container that has 
     been opened in a manner in which the beverage container was 
     designed to be opened.

     ``SEC. 12002. RESPONSIBILITIES OF BRAND OWNERS.

       ``(a) In General.--Each brand owner shall implement an 
     effective redemption, transportation, processing, marketing, 
     and reporting system for the reuse and recycling of used 
     beverage containers of the brand owner.
       ``(b) Prohibition of Post-Redemption Landfilling or 
     Incineration.--No brand owner or beverage container agency 
     shall dispose of any beverage container labeled in accordance 
     with section 12003 in any landfill or other solid waste 
     disposal facility.

     ``SEC. 12003. BEVERAGE CONTAINER LABELING.

       ``(a) In General.--No brand owner may sell or offer for 
     sale in interstate commerce a beverage in a beverage 
     container unless a statement of the refund value of the 
     beverage container is clearly, prominently, and securely 
     affixed to, printed on, or embossed on the beverage 
     container.
       ``(b) Size and Location of Refund Value Statement.--The 
     Administrator shall promulgate regulations establishing 
     uniform standards for the size and appropriate location on 
     beverage containers of the refund value statement required 
     under subsection (a).

     ``SEC. 12004. MANAGEMENT PLANS.

       ``(a) Submission of Plans.--Not later than 180 days after 
     the date of enactment of this subtitle, each beverage 
     container agency shall submit to the Administrator--
       ``(1) a management plan, in such form as the Administrator 
     may prescribe, for the collection, transport, reuse, and 
     recycling of beverage containers that the beverage container 
     agency, or that each brand owner represented by the beverage 
     container agency, sells into interstate commerce; and
       ``(2) a fee, in such amount as the Administrator may 
     establish by regulation, to cover administrative costs 
     relating to administration of the management plan.
       ``(b) Contents of Plan.--A management plan submitted under 
     this section shall--
       ``(1) include--
       ``(A) the name, and address for service of process, of the 
     beverage container agency submitting the management plan;
       ``(B) the name and title of a contact person at the 
     beverage container agency;
       ``(C) the name and corporate address of each brand owner 
     covered by the management plan; and
       ``(D) the brand name of each beverage covered by the 
     management plan;
       ``(2) provide--
       ``(A) a proposed implementation date for the management 
     plan; and
       ``(B) appropriate documentation of such agreements entered 
     into by the beverage container agency and return site 
     operators as will take effect as of the date of 
     implementation of the management plan; and
       ``(3) include a description of--
       ``(A) the ways in which the beverage container agency 
     intends to make the use of return sites convenient for 
     consumers of beverages covered by the management plan in all 
     areas of interstate commerce;
       ``(B) the ways in which the beverage container agency 
     intends to achieve, not later than 2 years after the date of 
     implementation of the management plan, a recovery rate of at 
     least 80 percent; and
       ``(C) the ways in which the beverage container agency will 
     manage beverage containers returned under the management plan 
     in an environmentally responsible manner.
       ``(c) Changes in Information.--Each beverage container 
     agency that submits a management plan under this section 
     shall promptly notify the Administrator, in writing, of any 
     change in the information provided under subsection (b)(1).
       ``(d) Approval of Management Plans.--
       ``(1) In general.--The Administrator shall approve or 
     disapprove each management plan submitted under this section.
       ``(2) Determination.--In determining whether to approve or 
     disapprove a management plan, the Administrator may return 
     the management plan to the beverage container agency--
       ``(A) with a request for additional information; or
       ``(B) for amendment.
       ``(3) Disapproval.--If the Administrator disapproves a 
     management plan, the Administrator shall, not later than 60 
     days after the date of disapproval, provide to the beverage 
     container agency that submitted the management plan a written 
     explanation of the reasons for disapproval.
       ``(e) Implementation of Management Plans.--

[[Page 5196]]

       ``(1) In general.--A brand owner that, on or before the 
     date of enactment of this subtitle, is selling in interstate 
     commerce a beverage in a beverage container, shall--
       ``(A) not later than 180 days after the date of enactment 
     of this subtitle, have in effect a management plan that has 
     been approved by the Administrator; and
       ``(B) implement the management plan in accordance with the 
     implementation date proposed in the management plan under 
     subsection (b)(2)(A).
       ``(2) New brand owners.--A brand owner that proposes, after 
     the date of enactment of this subtitle, to sell in interstate 
     commerce a beverage in a beverage container shall--
       ``(A) have, as of the date on which the brand owner 
     commences the selling of the beverage, a management plan that 
     has been approved by the Administrator; and
       ``(B) implement the management plan in accordance with the 
     implementation date proposed in the management plan under 
     subsection (b)(2)(A).
       ``(3) Prohibition.--No brand owner shall sell in interstate 
     commerce any beverage in a beverage container--
       ``(A) except as in accordance with paragraph (1) or (2), as 
     appropriate; or
       ``(B) on or after the implementation date proposed in a 
     management plan of the brand owner under subsection 
     (b)(2)(A), if the Administrator has not approved the 
     management plan.
       ``(f) Report.--
       ``(1) In general.--Each beverage container agency the 
     management plan of which is approved and implemented under 
     this section shall, not later than March 31 of each year 
     after the implementation date of the management plan, submit 
     to the Administrator a report that describes the 
     effectiveness of the management plan during the preceding 
     calendar year.
       ``(2) Information.--The report shall include--
       ``(A) for each type of beverage container returned, the 
     recovery rate--
       ``(i) expressed as a percentage; and
       ``(ii) audited by an entity independent of the beverage 
     container agency; and
       ``(B) annual financial statements, prepared by an entity 
     independent of the beverage container agency, of all deposits 
     received and refunds paid by each brand owner subject to the 
     management plan.
       ``(3) Public availability.--The Administrator may make 
     available to the public the information described in 
     paragraph (2).

     ``SEC. 12005. DEPOSIT AND REFUND.

       ``(a) Deposit.--
       ``(1) In general.--On and after the implementation date of 
     any approved management plan to which a seller is subject, 
     the seller shall collect from each purchaser of a beverage in 
     a beverage container, at the time of sale, a deposit in an 
     amount that is not more than the refund value of the beverage 
     container.
       ``(2) Documentation.--A deposit collected under paragraph 
     (1) shall be indicated on the receipt of the purchaser, if a 
     receipt is given for the purchase.
       ``(3) Exception.--This subsection shall not apply to a case 
     in which a beverage in a beverage container is sold for 
     consumption, and is consumed, on the premises of the seller.
       ``(b) Refund.--On and after the implementation date of an 
     approved management plan, a beverage container return site 
     covered by the management plan shall--
       ``(1) accept unbroken beverage containers for return; and
       ``(2) pay to a person returning beverage containers an 
     amount, in cash or in the form of a voucher redeemable for 
     cash on demand, that is equal to the total of the refund 
     values affixed to, printed on, or embossed on, each container 
     returned by the person.
       ``(c) Acceptable Beverage Containers.--A return site shall 
     not be required to accept or pay a refund for a beverage 
     container under this section if, as determined by the return 
     site, the beverage container--
       ``(1) is contaminated or, for hygienic reasons, is 
     unsuitable for recycling;
       ``(2) can be reasonably identified as a container that was 
     purchased outside the United States; or
       ``(3) cannot be reasonably identified as a container to 
     which this subtitle applies.

     ``SEC. 12006. REFUND VALUE.

       ``(a) In General.--The refund value of a beverage container 
     shall be the greater of--
       ``(1) 10 cents; or
       ``(2) an adjusted value determined under subsection (b).
       ``(b) Adjustment.--The Administrator shall--
       ``(1) adjust the amount of the refund value of a beverage 
     container under subsection (a) on the date that is 10 years 
     after the date of enactment of this subtitle, and every 10 
     years thereafter, to reflect changes during those 10-year 
     periods in the Consumer Price Index for all urban consumers 
     published by the Department of Labor; and
       ``(2) round any adjustment under paragraph (1) to the 
     nearest 5-cent increment.

     ``SEC. 12007. RECOVERY RATES.

       ``(a) In General.--Except as provided in subsections (b) 
     and (c), in a case in which a brand owner complies with each 
     provision of this subtitle, but fails to achieve a recovery 
     rate of at least 80 percent for beverage containers of the 
     brand owner during a calendar year, the Administrator may 
     require that the beverage container agency of the brand owner 
     pay to each State an amount equal to the difference between--
       ``(1) the amount of deposits collected on beverage 
     containers of the brand owner that were sold in the State; 
     and
       ``(2) the amount of refunds paid on those beverage 
     containers.
       ``(b) Exemptions for Certain States.--A brand owner that 
     achieves a recovery rate of at least 80 percent under a 
     beverage container deposit program of a State within the 2-
     year period beginning on the date of enactment of this 
     subtitle shall be exempt from the provisions of this subtitle 
     with respect to that State.
       ``(c) Reuse Rate Adjustment.--The minimum recovery rate 
     required to be achieved by a brand owner under subsection (a) 
     shall be reduced by 1 percentage point for each percentage 
     point increase in the use by the brand owner of refillable 
     beverage containers.

     ``SEC. 12008. OTHER MANAGEMENT REQUIREMENTS.

       ``(a) Disputes.--If a dispute arises under this subtitle 
     between, and cannot be resolved by, a beverage container 
     agency and a return site, the beverage container agency or 
     the return site shall refer the matter to binding 
     arbitration.
       ``(b) Confidentiality.--
       ``(1) In general.--Except as provided in paragraph (2), 
     each person acting under the authority of this subtitle shall 
     keep confidential all facts, information, and records 
     obtained or provided under this subtitle.
       ``(2) Exception.--Paragraph (1) shall not apply in a case 
     in which public duty requires, or any regulation promulgated 
     by the Administrator under this subtitle permits, the 
     disclosure of any facts, information, or records described in 
     that paragraph.

     ``SEC. 12009. REPORT BY ADMINISTRATOR.

       ``Not later than May 31, 2003, and annually thereafter, the 
     Administrator shall submit to Congress a report that 
     describes--
       ``(1) the recovery rate for beverage containers during the 
     year covered by the report; and
       ``(2) the extent to which beverage container collection is 
     proceeding in accordance with this subtitle.

     ``SEC. 12010. PENALTIES.

       ``Notwithstanding any other provision of this Act--
       ``(1) a person that violates any provision of this subtitle 
     (other than section 12004(f)) shall be subject to a civil 
     penalty of not more than $1,000 for each violation; and
       ``(2) a person that violates section 12004(f) shall be 
     subject to a civil penalty of not more than $10,000 for each 
     violation.''.
       (b) Conforming Amendment.--The table of contents for the 
     Solid Waste Disposal Act (42 U.S.C. prec. 6901) is amended by 
     adding at the end the following:

          ``Subtitle K--Beverage Container Reuse and Recycling

``Sec. 12001. Definitions.
``Sec. 12002. Responsibilities of brand owners.
``Sec. 12003. Beverage container labeling.
``Sec. 12004. Management plans.
``Sec. 12005. Deposit and refund.
``Sec. 12006. Refund value.
``Sec. 12007. Recovery rates.
``Sec. 12008. Other management requirements.
``Sec. 12009. Report by Administrator.
``Sec. 12010. Penalties.''.
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself and Mr. Smith of Oregon):
  S. 2221. A bill to temporarily increase the Federal medical 
assistance percentage for the medicaid program; to the Committee on 
Finance.
  Mr. SMITH of Oregon. Mr. President, I rise today to talk about a 
vital federal program that is an essential part of our health care 
safety net--Medicaid. Last year, the Medicaid program provided health 
coverage for 44 million of the most vulnerable Americans--22.6 million 
children, 9.2 million adults in low-income families, and 12 million 
elderly and disabled. One in four American children are covered by this 
important program.
  Yet despite the program's importance, states around the country are 
struggling to fund their share of their Medicaid programs. Going into 
legislative session this year, my home state of Oregon faced a budget 
shortfall of nearly $800 million, and most other states are facing 
similar conditions. The cruel irony of this situation is that just as 
state revenues have dropped due to poor economic conditions, many more 
families are turning to Medicaid as their only source of health care. I 
know that in Oregon, the number of people on Medicaid has risen by 10% 
since June of last year, and I suspect that many of your states have 
experienced similar increases. Additionally, because of scheduled 
formula adjustments, many states will see their existing Medicaid 
payments from the Federal government fall this year.

[[Page 5197]]

  It is not a mystery what will happen if we do not act: states will be 
forced to cut their Medicaid programs and more Americans will lose 
their health coverage. The number of uninsured people in this country 
will rise dramatically. Last year, more than 40 million Americans lived 
and worked without health insurance, and it is estimated that the 
economic downturn will add another 4 million to the ranks of the 
uninsured.
  This legislation would allow states to continue providing health care 
to our society's most vulnerable members in this economic downturn by 
providing a temporary increase in the Federal Medical Assistance 
Program, FMAP, funds states receive to pay their portion of the 
Medicaid bill. This legislation would hold states harmless at their 
2003 FMAP levels so that no state will experience a decrease in Federal 
funds for Medicaid, while providing all states with an additional 
temporary 1.5 percentage in their matching rates for three years. It 
would also target assistance to the most needy states by providing 
another 1.5 percentage point increase in their FMAP for three years.
  The goal of this bill is to prevent erosion of health insurance 
coverage and to maintain a strong health care safety net for vulnerable 
people during the economic downturn. By temporarily increasing the 
Federal portion of the Medicaid bill, the scope and depth of possible 
state budget cuts or tax increases will be lessened, minimizing the 
potential negative impact on the economy and our most vulnerable 
citizens across the country. It is the right thing to do, and the right 
time to do it.

                          ____________________