As environmental concerns related to CPG end-of-life conditions grow, so does the concept of extended producer responsibility (EPR). Packaging is an area of major focus in this regard because so much plastic is used in traditional packaging. This is typically produced from lower-quality resin that degrades into harmful microplastics.
Extended producer responsibility refers to laws that hold CPG companies and other manufacturers that utilize plastics for packaging responsible for the end-of-life conditions of their products. They are required to ensure that their products cause minimal environmental problems after disposal. As consumers cannot always be trusted to recycle, this means taking EPR policies into account at the design level. By requiring producers to innovate and invest, EPR policies help align product design with the realities of current and future waste management systems. It means using more recycled material, less plastic and, when possible, less packaging material overall. All of these are, in any case, good ways to improve a company’s environmental impact.
California’s New Extended Producer Responsibility Act
On June 30, 2022, SB 54, the Plastic Producer Responsibility Act, was signed into law. The Act covers single-use packaging and plastic single-use food service ware. Packaging for medical products is exempt.
The law requires producers to reduce the amount of plastic used in the state by 10 percent by 2027, 20 percent by 2030, and 25 percent by 2032. It specifically requires both moving away from single-use to refillable or reusable packaging and rethinking design by removing plastic components, changing formatting, or reducing package weight. All covered material also needs to be recyclable or compostable by 2032.
The Act requires that all producers join a Producer Responsibility Organization (PRO) by the end of 2024. These organizations help their members ensure compliance by creating a source reduction plan to reduce plastic materials and help identify recycling technologies and means. Members have to pay fees to the PRO and the PRO has to pay fees to CalRecycle.
Penalties for noncompliance can be as high as $50,000 a day. This is a major move by a state that is often at the forefront of efforts to ensure sustainability.
Other Common Extended Producer Responsibility Acts or Laws
Seven U.S. states have active EPR or similar laws: California (which we’ve discussed), Colorado, Maine, Oregon, New Jersey, Minnesota, and Washington. Maine was actually the first to pass one of these laws, in 2021.
These laws, though, vary in nature. Here are some examples:
Maine
Maine passed the first of these laws. It’s designed to shift the cost of managing packaging waste to producers of packaging in order to increase recycling and incentivize producers to use less plastic and less packaging overall. Producers will need to pay fees to offset the cost of waste that ends up in landfill.
New Jersey
Meanwhile, New Jersey has passed a law to require a certain percentage of recycled content in certain packaging, including glass and rigid plastic containers.
United Kingdom
The U.K. has also recently passed an EPR law that, like the Maine law, is aimed at transferring costs. This law, which will come into effect in 2025, will charge fees to packaging producers based on the packaging they produce. It has caused some controversy for basing fees off of weight, not units, which might disproportionately affect certain industries.
New York
New York’s EPR bill is currently stalled. It’s a comprehensive bill that calls for producers to reduce the weight of packaging, sets minimum recycled content, and requires producers to register with a packaging reduction and recycling organization. The bill only applies to larger businesses. It’s unlikely to pass in 2024 and may be significantly changed, but it illustrates the trend for increased EPR legislation.
So What Does This Mean for Ohio?
If you’re producing food or consumer goods packaging and intend to sell in states with extended producer responsibility (EPR) laws, it’s crucial to comply with their specific packaging requirements. States like California, Colorado, Oregon, and Maine have set EPR regulations aimed at improving recycling rates, reducing plastic waste, and shifting the financial burden of waste management to producers. These laws typically mandate that packaging materials must be recyclable or compostable and that producers participate in recycling programs managed by producer responsibility organizations (PROs). Failure to meet these criteria could limit market access in these states.
Ohio currently has no EPR laws targeting packaging, but the growing trend across the U.S. suggests that it’s wise for companies here to stay ahead of regulatory shifts. A federal approach is being explored with the release of the EPA’s National Strategy to Prevent Plastic Pollution which emphasizes the need to harmonize EPR policies. For companies wanting to expand their markets, exploring sustainable packaging options now can offer a competitive advantage and future compliance benefits.
However, it’s important for food manufacturers and other CPG companies to keep performance as the number one packaging criteria during product design. Cutting corners in this area could lead to a reduction in shelf life or food safety issues once the product is in consumers hands. This is why using packaging solutions that don’t compromise on performance is so important, such as the various flexible packaging solutions offered by members like SmartSolve.
CIFT, with its mission to support the food industry, along with its member companies like SmartSolve collaborates to drive sustainable solutions for innovative packaging options. SmartSolve specializes in developing water-soluble, eco-friendly packaging materials, including paper labels and pouches, some of which are approved for direct food contact.
Through such collaborations, CIFT and our members help facilitate the adoption of solutions that align with strict sustainability criteria.
SmartSolve’s product offerings are a prime example, as they are 100% bio-based, home compostable, recyclable, and drain-safe. Additionally, they are free from harmful chemicals like PFAS, BPA, and phthalates. These features make their products well-suited to meet the requirements of evolving Extended Producer Responsibility (EPR) standards.
CIFT and its members enable companies to explore sustainable packaging options and other solutions, offering a pathway to compliance and collaboration for the future.
This blog is the result of a collaborative effort between SmartSolve and CIFT, reflecting a shared commitment to providing the latest information on sustainable packaging and Extended Producer Responsibility (EPR) standards for our audience. Contributors to this piece include Dana Prenger, Marketing Coordinator at SmartSolve; Matt Inniger, Program Manager – Advanced Food Technology at CIFT; and Rachel Petropoulos, Sustainability Specialist at CIFT. Their combined expertise and insights aim to inform and inspire companies navigating the evolving landscape of sustainable packaging solutions.