
GCA Urges Exemptions for Greeting Cards in EPR Law Implementation
(Updated 10/8/2024)
Overview- Over the last several years, numerous states have considered enacting Extended Producer Responsibility (EPR) legislation for paper and plastic. These laws transfer the responsibility for the costs of recycling and disposal of paper and plastic packaging – and in some cases, paper products, i.e., greeting cards – from communities to manufacturers and producers.
To date, four states (California, Colorado, Maine, Oregon, and most recently, Minnesota) have enacted EPR for paper and plastic. Fortunately, California and Maine’s EPR laws do not include taxing paper products. Unfortunately, Colorado and Oregon’s EPR laws include taxing both paper and plastic packaging and paper products, including greeting cards. All four laws contain exemptions for small businesses with gross revenues of $5 million or less.
As more states look to pass EPR legislation, GCA is engaging in advocacy to encourage exclusions for paper products and/or greeting cards specifically. While state sales minimums may currently limit the financial impact to the majority of GCA members, the precedent these bills set is problematic, and experience shows that revenue minimums can be reduced in future years. Moreover, the message that greeting cards should be treated the same as junk mail that immediately goes into the recycling bin is not desirable messaging for our industry.
EPR by State– The following graphic from the American Forest & Paper Association (AF&PA) shows which states have enacted EPR laws and which states are expected to pass EPR in 2024. We will update this map as the year unfolds and will be encouraging engagement from GCA members where and when it can be impactful. At this point state legislatures are winding down activity heading into the election but EPR efforts are expected to ramp up quickly after the election and at the beginning of next year. The outcome of the election will determine prospects for bills in many states.
Enacted States
A side-by-side comparison of enacted EPR bills may be found here.
CA- SB54 passed and is 18 months into implementation. There have been 10 workshops with one more scheduled for 12/14. The needs assessment will begin soon; we expect completion in 2025. Moving forward, expect to see a list confirming recyclable categories. The Circular Action Alliance has been selected as the Producer Responsibility Organization (PRO). The PRO is responsible for administering the EPR program. There can only be one PRO for the first 10 years. Producers’ fees start upon approval of a plan or January 1, 2027, whichever is sooner. Action on definitions under the bill is due to begin on July 4, 2024.
CO- HB 22-1355 passed and the needs assessment is complete. Three options were under consideration. The medium scenario has been approved. The advisory council has met 14 times. Producers’ fees start no later than Jan. 1, 2026. Monthly updates are being provided to the CO advisory board. https://cdphe.colorado.gov/hm/epr-advisory-board They are expecting clarity in July on what fees for producers may look like. They continue to work through the regulations for implementation. A May 22 hearing will be the final opportunity for input.
ME– LD 1503 passed and the implementation phase is underway. Producers’ fees start in 2026. There will be a hearing on March 7th. The written comment deadline is March 17th. They do expect a good amount of engagement. They are pleased with the number of changes to the draft regulations so far. There has been good progress. The result is not perfect but it shows positive responses to inputs.
OR- SB 582 passed and implementation is underway. In an attempt to exclude greeting cards from the program, GCA’s Vice President for Public Affairs delivered two statements to the Oregon Recycling System Advisory Council during their exclusionary request hearings. Unfortunately, it is expected that greeting cards will remain in scope, despite the stated intentions of the legislation’s authors. GCA’s statements will ideally set the stage for corrective legislation that carves out greeting cards in 2025. Producers’ fees start by July 1, 2025. The Circular Action Alliance is currently the only candidate for the PRO. The process is delayed. DEQ is indicating it will not approve the CAA application and is looking at another vendor and the application deadline has been extended.
MN- HF3911 The Packaging Waste and Cost Reduction Act passed as part of the annual budget process. It combines some of the most unfavorable elements of the other EPR bills being implemented. It covers paper products and packaging including greeting cards and has a low $2 million global gross revenue exemption threshold. The law has a lengthy implementation timeline and producer responsibility will not begin until February 1, 2029. There will likely be efforts to expand the list of excluded products to cover greeting cards in the next session. MN Pollution Control Agency released its first EPR Fact Sheet. https://www.pca.state.mn.us/sites/default/files/w-ps1-05b%20.pdf The examples of B2B exemption appear too narrow. The advisory board has listed open positions here: https://commissionsandappointments.sos.state.mn.us/Agency/Details/375
Pending States
IL- IL Manufacturers Association is facilitating applications for the study group, which is supposed to be completed by January. Work has still not commenced.
MD- MD is commencing a needs assessment. One of AF&PA’s staff has been selected to participate in the advisory council. The Maryland advisory board met last month for fourth meeting of the year. Discussed eco-modulation. They have not gotten information on the needs assessment. AF&PA will present at a 10/24 meeting.
MA- In the second year of the 2-year legislative cycle. At this point, they are required to give time to every single bill that is introduced. None of the EPR bills tracked last year came out in the same form, they have been assembled into 2 aggregate bills. One is a plastics ban and the other is EPR-focused. SB570 is the plastics bill. It combines 9 earlier bills. HB4263 is the EPR bill. It is a redraft of earlier bills and includes post-consumer provisions. Beverage containers are exempted. The next step is to refine the bills and to determine what could move forward but it is not a high-priority activity.
MI- HB 5902 has been introduced but there does not seem to be a lot of motivation to have the bill heard. Bill opponents have been working to generate opposition.
NJ- A new EPR bill has been introduced (S3398) It appears to be packaging only. Sen. Bob Smith may consider the bills in the Senate Environmental Committee. It is not clear if it will be discussion only or if a vote would be held.
NY– EPR legislation failed to progress in NY but efforts to pass it will begin again in the next session. The version that was defeated did include a paper product exemption, so efforts will be made to at a
WA- Rep. Liz Berry (D) has released a draft version of EPR legislation. It includes CA style offramps for ICI. Included eco-modulation. Changes definition to exclude copy paper. This exclusion was the result of lobbying by AF&PA and reflects an inconsistent approach given that there is much greater volume and material discarded more quickly than with greeting cards. GCA members in WA are preparing to engage with Rep. Berry to ask for inclusion of a greeting card exemption based on the new copy paper exclusion.
Federal update- Last week Rep. Larry Bucshon (R-IN) and Don Davis (D-NC) introduced an advanced recycling bill. H.R. 9676 This is the plastics industry’s preferred approach to advanced recycling. The bill requires a study and numerous other provisions favored by the plastics industry.
Rep. Bucshon will be retiring and Rep. Davis has a tough race. Thus, the path for the bill remains uncertain. Plastic interests think it is not likely to be considered this Congress but will be a roadmap for their approach next Congress. The bill was dropped unexpectedly and there has not been coordination with the Commerce Committee.
You can review a full EPR Outlook Report for 2024 here.
You can view the recording of our January 10th webinar here.
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