Packaging EPR Series: Why is Extended Producer Responsibility (EPR) Important to Brand Owners?
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 the previous post in this series, Extended Producer Responsibility (EPR) is a policy approach that shifts the responsibility for managing post-consumer packaging collection, logistics, and recycling from local governments to the producers. This policy approach assesses fees based on the amount of packaging sold in the state in the U.S. where EPR applies.
Under these EPR laws, producers have a legal obligation to pay compliance fees based on the total of the distributed (sold) packaging. To manage compliance with this initiative, state-approved Producer Responsibility Organizations (PROs) are tasked with collecting these fees and using them to improve recycling infrastructure. 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, Minnesota’s law categorizes “producers” in a tiered manner to determine who is responsible for compliance. A producer is defined as an entity that first brings “items sold in or with packaging” into the state, which includes both physical retailers and those selling through e-commerce, remote sales, or distribution channels. Additionally, producers are those who package items for shipment to retailers or directly to consumers. If an item is sold with packaging that bears the manufacturer’s brand or lacks any brand identification, the manufacturer is considered the producer. Conversely, if the packaging does not display the manufacturer’s brand, the brand owner of the item is deemed the producer.
To date, California, Colorado, Maine, Oregon, and Minnesota 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 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 and Minnesota, the likelihood is that producers will need to align themselves with the PRO by 2026.
Figure 1. Producer Obligations and Timeline
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 petroleum, automotive, and engine lubricant product producers. To understand the particularities and differences of each state, the Sustainable Packaging Coalition has developed a tool that is accessible through its webpage.
There are notable variations in the regulations in the five EPR States for the petroleum, automotive, and engine lubricant industries. 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. 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. For Maine and Minnesota, no specific exemptions apply to this industry.
As EPR legislation continues to gain momentum, understanding compliance requirements and preparing for changes in legislation is crucial for producers and other members of the value chain. We invite you to stay tuned to our packaging EPR blog series. Upcoming posts will provide insights on the NLCRC work around EPR in the U.S.
The National Lubricant Container Recycling Coalition or “NLCRC” is an industry-led coalition funded by a committed consortium of value chain stakeholders focused on establishing solutions for the recovery and recycling of packaging for petroleum-based and related products utilized in the transportation and industrial applications Industry.
Members include Berry Global, Castrol (part of bp Group), Chevron, CKS Packaging Inc., ExxonMobil, Graham Packaging, Independent Lubricant Manufacturers Association, Lucas Oil, 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
