HB381 Alabama 2025 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

2025 Regular Session

Title

Recycling; Department of Environmental Management required to issue credits; Department of Revenue required to accept credits in lieu of fees; civil penalties established

Summary

HB381 creates a recycle credit system where using recyclable materials to make new products or energy earns credits that can replace solid waste disposal fees and be traded, with penalties and specified fund distributions.

What This Bill Does

The Alabama Department of Environmental Management would issue recycle credits for each certified ton of recyclable material used to produce a new product or energy source, and would issue a certificate showing owner, amount, and date. The Department of Revenue and other solid waste fee collectors would accept credits in lieu of disposal fees for one ton or four cubic yards of waste, and credits can be transferred to others for a fee, with transfers requiring registration and a transfer form. Credits expire after three years or when accepted by Revenue, and the program is limited to no more than 50 million credits issued per calendar year. Civil penalties of up to $1,000 can be assessed for falsifying information, and the act directs how fees and penalties are distributed to funds and programs; rules would be established by ADEM, with the act effective October 1, 2025.

Who It Affects

• Businesses or individuals that use recyclable materials to produce new products or energy sources would earn recycle credits and may transfer them, potentially lowering disposal costs.
• Entities that collect or pay solid waste disposal fees (including the Department of Revenue and other fee collectors) would be required to accept recycle credits in lieu of fees, manage credit transfers, and handle distributions to specified funds.

Key Provisions

• The Department of Environmental Management must issue a recycle credit for each certified ton of recyclable material used to produce a new product or energy source, along with a certificate detailing owner, quantity, and date.
• A credit may be transferred to another person for a fee, requiring registration within 30 days via a transfer form and a department-set transfer fee; credits expire after three years or when accepted by Revenue, whichever comes first.
• No more than 50 million credits can be issued per calendar year; falsifying a credit application or transfer form can lead to civil penalties of up to $1,000 per violation.
• Disbursement of fees and penalties: 40% to the Solid Waste Fund, 40% retained by the department for administering the program and educational efforts, and 20% to the Alabama Recycling Fund; ADEM would adopt rules, and the act becomes effective October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Environmental Protection