Fall 2024 • Second Edition
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Webinar:
Understanding Packaging Claims & Labels
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EPR Laws: What Will Work?
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Five states now have extended producer responsibility (EPR) laws for packaging, and each state—Maine, Oregon, Colorado, California, and Minnesota—has adopted distinct approaches to implementing their programs. These differences showcase the potential for government-industry collaboration, and policymakers likely will monitor these laws for lessons learned in creating packaging EPR programs.
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A look at the chart above offers insight into the disparate nature of these laws on key provisions. AMERIPEN believes that a balanced and shared responsibility approach, incorporating industry input and allowing for flexibility and innovation, is the right path forward for advancing recycling and environmental goals. For the past several years, we have been working with lawmakers, sharing our vast industry expertise to help guide the development of programs that are reliable, efficient, equitable, fair—and effective. We believe that one state’s law—Minnesota—does a better job incorporating these goals than the others.
The framework in Minnesota establishes a true model of shared responsibility and aligns with the state’s strong recycling and composting infrastructure and one of the country’s highest existing recycling rates. We also believe the law will enable a strong producer responsibility organization (PRO) to ensure that producer fees will directly fund initiatives to increase recycling and composting even further in the state.
More specifically, we encourage policymakers to consider these key elements of the Minnesota law in their decision-making:
- Packaging producers will begin paying for recycling costs in Minnesota starting at 50% in 2029, 75% in 2030, and 90% in 2031 and beyond, while service providers must register and meet performance standards for reimbursement based on competitive bids, and local governments will continue to be engaged partners.
- The PRO, formed by packaging producers, will establish a process and reimbursement model for only core recycling functions for residents and limited other entities.
- The PRO, under this framework, can remain focused on core activities without the burdens imposed by EPR laws in other states, such as artificial timelines for arbitrary recycling targets; mandates to fund recycling for massive commercial operations that can manage their own recycling costs or landfilling; and unrelated mandates around packaging composition.
- The Minnesota law includes good antirust provisions to ensure fair competition among all parties.
As these new EPR laws for packaging are implemented, their success will be measured by their ability to increase recycling and composting, reduce packaging waste, and drive innovation in sustainable packaging design. The outcomes of these diverse approaches will likely inform future policy decisions at both state and potentially federal levels. As always, AMERIPEN stands ready to educate lawmakers and share valuable industry expertise from across the packaging value chain.
For more information about packaging EPR policy and implementation in the United States, visit our EPR webinar series pages at www.ameripen.org or contact us at info@ameripen.org.
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Power of Packaging:
Reducing Food Waste, GHG Emissions
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- The U.S. packaging industry is a major economic contributor, accounting for approximately $538 billion in total economic output—approximately 2.5% of gross domestic product.
- Packaging industry companies and their employees contribute $43.46 billion to their communities via direct federal, state, and local taxes paid.
- Packaging businesses directly create more jobs than the oil and gas extraction industry and nearly as many jobs as the data processing and hosting industry.
- The packaging industry touches businesses in all 544 sectors of the U.S. economy, and packaging businesses support more than 1.68 million direct and ancillary jobs nationwide.
Source: “2021 Packaging Industry Economic Impact Study,” John Dunham & Associates and AMERIPEN
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AMERIPEN is the only organization exclusively focused on U.S. public policy for the entire packaging industry for all material types.
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Using facts, scientific information, and a philosophy of material inclusivity, AMERIPEN develops and advocates common-sense positions on issues related to packaging and the environment.
With more than 100 member organizations, AMERIPEN includes leading brand owners, packaging converters, materials suppliers, retailers, and recyclers. Our Education and Research Advisory Group comprises academics engaging in packaging and waste management research.
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