As you may know, Emerger Strategies has partnered with Atlantic Packaging and A New Earth Project to deliver sustainable packaging solutions for our clients, and I recently came across the article, “Deep Dive: Extended Producer Responsibility (EPR) for Packaging, Explained” from Atlantic Packaging, and if you, or your brand, don’t understand EPR, this is a fabulous resource. I cherry-picked some highlights, which can be found below:
What is EPR?
Extended Producer Responsibility (EPR) is a policy framework that shifts the external environmental costs of a product and its packaging from the consumer (tax payer) to the producer (brand).
Who is the Producer?
The “producer” is not the manufacturer of the packaging, but the brand whose name is on the packaging. “It’s important to note that “producers” don’t need to be based in the regulated state: if they are selling product into the regulated state, they are likely an obligated producer under that state’s law.
“States typically have small business exceptions. Each state has a minimum threshold based on the amount a company sells within the state. For example, if a company is selling over $1 million worth of product per year in California, they will likely be an obligated producer, but a company selling less than $1 million would be exempt, regardless of where that company is based. This threshold is different for each state.”
Who Manages the EPR Program?
“An EPR program is managed by a Producer Responsibility Organization (PRO), which is typically a non-profit run by the producers. The PRO (which may also be called a Stewardship Organization) must be approved by the state, and the PRO and the state agency work together to make the EPR program successful. Some key producers will start a PRO, and then other producers can join the PRO to comply with the law.
The PRO can be a different organization in each state. However, thus far, the Circular Action Alliance (CAA) has been named as the PRO in California, Colorado, and Oregon. We expect it will continue to be named as the PRO in other states, basically operating a “franchise” model. CAA is a 501(c)(3) nonprofit founded by 20 companies, including Amazon, Coca-Cola, Keurig Dr. Pepper, Mars, and many more in response to the rise of EPR laws.”
Fee Structures
“Packaging EPR laws often set target recycling and composting rates that the PRO and producers are responsible for meeting. For example, California’s law has the goal of reaching a 65% packaging recycling rate by 2032, with interim goals along the way. They also typically have goals to harmonize recycling rules and processes across the state to support better infrastructure and make it easier for consumers to participate in recycling. Some states, like California, also set goals on packaging reduction for brands/manufacturers. For example, California’s EPR bill, SB 54, has a goal to reach a 25% reduction in single-use plastic packaging by weight and unit by 2032.
While we don’t know the specific fees each state will set, “producers may be charged higher fees for difficult-to-recycle packaging, like plastic films, while there may be lower fees for packaging that is curbside recyclable or uses recycled content. Fees create incentives for brands to reduce the amount of packaging they use and to switch to more recyclable or compostable packaging. There may also be incentives built in to move away from single-use plastic packaging. These fees and recycling targets also create upstream incentives to incorporate circular principles early in a product’s production, rather than as an afterthought, as is traditionally done in a linear system.”
What Brands Should Do Now
“First and foremost, brands should register with the PRO!
CAA is actively registering companies that think they will be obligated producers under the EPR laws in California, Oregon, and Colorado. CAA originally asked for companies to register by July 1, 2024. At this time, it is free to join CAA, so if companies are unsure whether they should join, it would be better to go ahead and register. This will ensure the company will receive key information about deadlines and information on whether they will be obligated to pay fees. There may be a registration fee after July 1, 2024. Producers can register at https://circularactionalliance.org/registration.
While there is a great deal of uncertainty surrounding packaging EPR laws and implementation, there are a few things companies can do now to prepare:
- Assign a point person at your company to register with CAA and stay on top of updates to EPR laws and implementation. You may even consider seeking legal counsel.
- Begin documenting all your packaging SKUs, including weights and material types, to record baseline data for CAA. To provide the most comprehensive data, you may need to record 2022, 2023, and 2024 packaging data to comply with baseline data requirements in the different states. You’ll also want to understand how your company’s packaging data is documented so that you can more easily provide it to the PRO in future years.
- Document all the ways you have reduced your packaging and/or made it more recyclable in the last 7-10 years. This could include recording any lightweighting, switching to recyclable packaging, PCR content use, etc. your company has done.
- Keep an eye out for any future opportunities to reduce your packaging and make it more recyclable – Atlantic Packaging can help with this! Check out our extensive sustainable packaging tools on our Sustainability page and on A New Earth Project’s website.”
State-Specific EPR Law Pages
State-Specific EPR Law Pages:
- California – “Plastic Pollution Prevention and Packaging Producer Responsibility Act” (SB 54)
- Colorado – “The Producer Responsibility Program for Statewide Recycling Act” (HB 22-1355)
- Illinois – “Statewide Recycling Needs Assessment Act” (SB 1555)
- Maine – “The Extended Producer Responsibility for Packaging Act” (LD 1541)
- Maryland – “Environment – Statewide Recycling Needs Assessment and Producer Responsibility for Packaging materials” (SB 222)
- Minnesota – “Packaging Waste and Cost Reduction Act” (HF 3911)
- Oregon – “Plastic Pollution and Recycling Modernization Act” (SB 582)
Emerger Strategies: Sustainable Packaging Solutions
Emerger Strategies has been helping our clients go Zero Waste in their operations for years, and we are also now offering Sustainable Packaging Solutions through our partnership with Atlantic Packaging and A New Earth Project. If your company needs help with achieving Zero Waste, or wants to make the switch from plastics to 100% curbside recyclable packaging, contact us today!
Also, if you’d like to learn more about A New Earth Project and Atlantic Packaging, check out my interview with Atlantic Packaging President, Wes Carter on The Sustainable Angler podcast!
