Packaging EPR Overview and Relevance to the Petroleum, Automotive, and Engine Lubricants Industries

One of the priorities of the NLCRC is to define the impacts of current and future packaging legislation on the petroleum, automotive, and engine lubricant industries. 

As mentioned in our previous posts, Extended Producer Responsibility (EPR) is a policy approach aimed at shifting the responsibility for managing the collection, logistics, and recycling of post-consumer packaging onto Producers by assessing fees based on the amount of packaging sold in the state where EPR applies. In some states, recycling goals have already been established (e.g., California will require a 65% recycling rate for plastic packaging by 2032). 

Under these Packaging EPR laws, Producers have a legal obligation to pay compliance fees. To facilitate this, states establish stewardship groups known as Producer Responsibility Organizations (PRO). These PROs are responsible for collecting and managing fees from Producers, which are based on the amount of packaging sold within the state. The PROs use those fees to fund state recycling systems, communication and outreach, and other administrative obligations. The specific fee structure is determined by each PRO or state’s regulations, ensuring an effective and sustainable approach to managing packaging waste.

The term “Producer” varies from state to state, but in general, it is defined as Brand Owners or their licensees. As an example, in California, a producer is “…someone who manufactures a product using covered materials and either owns or holds the license for the brand or trademark under which the product is sold in the state. If no manufacturer or license holder is in the state, the producer is the owner or exclusive licensee of the product's brand or trademark. When no entity fits these criteria within the state, the producer is the one selling or distributing the product using those materials in California.”

To date, California, Colorado, Maine, and Oregon have passed EPR laws. Each of the states is currently working through a policymaking process that further defines EPR program expectations. An estimated timeline for implementation has been developed, which can include key dates to assign or join a PRO, completion of state assessments, and in some cases, timelines for when Producers must begin to pay EPR fees.

Producers across various states now face impending deadlines to join their respective PROs. In California, the requirement mandates their participation by 2027, while Colorado and Oregon expect producers to be on board by 2025. Meanwhile, in Maine, the likelihood is that producers will need to align themselves with the PRO by 2026. 

Packaging EPR regulations apply to many consumer-based products across multiple industries, although there can be slight variations in applicability between states. Although some product or Producer exemptions exist, they generally do not apply to Producers of petroleum, automotive, and engine lubricant products. To understand the particularities and differences of each state, The Product Stewardship Institute has developed a comparison tool that is accessible through its webpage.

For this industry, there are notable variations in the regulations in the four EPR States. California regulations exclude hazardous or flammable products but include antifreeze, brake fluid, and ultra-low viscosity automatic transmission fluid. Colorado's regulations, on the other hand, exempt packaging used solely for industrial or manufacturing purposes and packaging necessary for products required by state law to meet federal Poison Prevention Act standards. For Maine, no specific exemptions apply to this industry. Meanwhile, in Oregon, the exclusions are related to products federally classified as toxic or hazardous, potentially including antifreeze, brake fluid, and ultra-low viscosity automatic transmission fluid. These differences highlight the various standards that determine what is excluded in different states.

In response to emerging legislation, customer demands, and other external drivers, industry leaders formed the National Lubricant Container Recycling Coalition (NLCRC) in 2021. In addition to monitoring current and future legislation that could impact our target industries, we will continue to focus on developing effective programs for the recovery and recycling of petroleum, automotive, and engine lubricant containers, and the exploration of sustainable packaging solutions. The member companies of the NLCRC, including Producers and other value-chain stakeholders, recognize the importance of collaboration, knowing that acting collectively is the only way to address complex, system-level, industry challenges at scale .

The NLCRC is an industry-led technical coalition established by a committed group of industry leaders in lubricant and associated plastic packaging manufacturing, focused on establishing solutions for post-consumer recovery and recycling of plastic lubricant containers.

NLCRC members include Berry Global, Castrol, Chevron, CKS Packaging Inc., Graham Packaging, Nexus Circular, Pennzoil - Quaker State Company, Petroleum Packaging Council, Plastipak Packaging,  RPM eco, Safety-Kleen, and Valvoline. For more information, visit https://www.nationallcrc.com