SECTION 1. Chapter 21H of the Massachusetts General Laws is hereby amended by inserting after Section 8 the following section:-

Section 9. Materials Recovery Facility Disclosure and Transparency

(a) Definitions:

“Actual Value”, shall mean price of commodities as determined by a Materials Recovery Facility which is not based on a commodities index

“Average Market Value” or “AMV”, shall mean the sum of the percentage of each commodity and contamination as determined by commodity composition multiplied by its index value or actual value 

“Commodity Composition”, shall mean the relative weights of each commodity and residue based on inbound audits conducted by an independent third party approved by the department using a methodology determined by the department

“Contaminant”, shall mean a material that is not recyclable in a MRF’s system and that is not banned from disposal pursuant to 310 CMR 19.017

“Department”, shall refer to the Massachusetts Department of Environmental Protection

“Index”, a third-party publication that provides weekly or monthly price ranges for recyclable commodities based on objective, confidential information provided by buyers and sellers in the industry

“Materials Recovery Facility” or “MRF”, a facility that receives, processes, converts and markets post-consumer materials for use as a raw material for manufacturing or other type of beneficial use approved by the Municipality other than energy recovery, thermal conversion, or disposal.

(b) In order to ensure that outbound materials are efficiently sorted into recyclable commodities, and are sent to facilities that meet the department’s environmental and public health standards, each Materials Recovery Facility shall be required to regularly provide reports to the Massachusetts Department of Environmental Protection detailing the following:

i.Inbound weight of each commodity and all contaminants sold or disposed based on audited commodity compositions

ii.Outbound weight of each commodity sold

iii.Commodity composition of residue, to determine sorting losses

iv.Commodity composition of samples taken immediately before baling of each commodity sold, to determine bale quality

v.Destinations of each commodity and residue and

vi.Evidence that it is reporting its outbound commodity pricing to the index it uses for contract pricing.

The frequency and methodology of third party audits, a list of approved third party auditors, and the frequency of these reports shall be determined by the department.

(c)  The department shall make current index value information available to municipalities that contract with a MRF either directly or through a contract with a waste hauler.

(d) Materials recovery facilities shall use the most recently reported commodity compositions and index values in their AMV calculations for all but disposed residue when invoicing municipal customers. If an index does not exist for a particular commodity or contaminants,  MRFs shall provide primary documentation of how the value is determined to the municipality. 

(e)  MRFs shall provide reports to the publisher of the index on which they base their pricing.

(f)  MRFs shall not impose fees in excess of 150% of actual disposal cost, with documentation of actual disposal cost and location,  for contamination in excess of the MRF’s permitted residue rate.

(g)  Residue disposed by a MRF shall meet department standards for the disposal of Waste Ban materials listed in 310 CMR 19.017.

SECTION 2. The department shall promulgate regulations pursuant to subsection (b) of Section 9 of Chapter 21H of the General Laws by July 1, 2024.

SECTION 3.  Subsections (c) through (g) of Section 9 of Chapter 21H shall take effect on January 1, 2024.