National Lubricant Container Recycling Coalition

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Update - Packaging Extended Producer Responsibility in the U.S.

The Extended Producer Responsibility (EPR) legislative landscape in the U.S. is rapidly evolving, and it has been marked by the recent inclusion of Minnesota among the states that have packaging EPR laws in place.

In 2021, Oregon and Maine passed EPR laws followed by Colorado and California in 2022, and now these states are developing polices for implementation. Recently in May 2024, Minnesota joined the list. 

Oregon’s packaging EPR law gives significant authority to the Oregon Department of Environmental Quality (DEQ) for key decisions in the program. Oregon follows a shared Producer Responsibility model where the local governments continue to have operational responsibility for the recycling services and collection they provide. This law places importance on producers developing ways to support the recycling of materials once they have been collected and processed and imposes Producer Responsibility Organization (PRO) requirements to ensure that those materials end up in “responsible end markets.”

Maine’s Packaging EPR law is unique as most of the control of the program lies with the Maine Department of Environmental Protection (DEP). The program will be implemented by an administrative stewardship organization (SO) that is contracted with the DEP instead of a producer responsibility organization. In Maine, the program will reimburse local municipalities through a median cost reimbursement rate, to pay for the management of “readily” and “non-readily” recyclable packaging materials at different rates.

California’s packaging EPR law allows for producers to be involved in the PRO’s program implementation and oversight, but CalRecycle has significant involvement in the regulations and oversight of the implementation. This law also mandates that producers create an EPR plan for packaging to achieve a 65% recycling rate and be 100% recyclable or compostable by 2032. The Circular Action Alliance (CAA) was approved in January 2024 as the PRO for this law. However, CalRecycle has the authority to approve additional PROs after Jan. 1, 2031, if necessary.

Colorado’s packaging EPR law defines that the PRO has significant authority to develop a statewide plan, propose the “readily recyclable” minimum recyclables list, and propose program performance goals. In May 2023, the Colorado Department of Public Health and Environment (CDPHE) officially selected and designated the CAA as the PRO.   

Minnesota has recently joined the list of states with Packaging EPR laws in the U.S. The law defines a moderate model that has no statutory recycling rates defined yet and where 90% of the costs of the program will be paid by the producers. Initially, only one PRO organization in Minnesota would be designated to implement the program. However, there will be a shared role between the PRO and the Minnesota Pollution Control Agency (MPCA) in creating recycling goals and structuring the program.  

As for what is next for 2025, we have seen EPR for packaging introduced in nine other states: Washington, New Jersey, New York, Tennessee, Rhode Island, New Hampshire, Massachusetts, Hawaii, and Illinois. However, the legislative context is rapidly evolving, therefore, the situation and the list of states considering EPR as a possibility might change in the upcoming 2025 legislative session.

The NLCRC has determined that the EPR laws will affect packaging in the petroleum/automotive sectors, and other areas where lubricants and related products are used. As EPR legislation continues to gain momentum, understanding and preparing for these changes is crucial for producers and other members of the value chain. 

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