Post-consumer recycled content (“PCR”) plays an important role in extended producer responsibility (“EPR”) programs for packaging. Among other purposes, the EPR programs are intended to increase the quantity and quality of post-consumer material recycled into PCR. On the demand side, the programs provide incentives or requirements for producers to use PCR in their packaging portfolio.
Each of the five enacted EPR programs incorporates a fee credit for covered material that uses PCR.[1] The programs also call for the implementing agency or the producer responsibility organization (“PRO”) to set PCR targets for categories of materials, either for statewide program goals or to assess individual producer fees. Additionally, some states have separate laws that require minimum PCR rates for certain products, such as for beverage containers in California.[2]
Colorado’s recent Producer Responsibility Advisory Board meeting for the Colorado program provided useful information on how PCR fits into producer compliance.[3] The meeting included testimony from various Colorado stakeholder representatives (e.g., packaging suppliers, materials recovery facilities, municipalities, etc.) and from Circular Action Alliance (“CAA”), the approved PRO for Colorado and California and the only prospective PRO in Oregon.
The lowest PCR use currently occurs in plastic materials, which are often difficult to recycle, with paper and aluminum being the highest. Advisory Board members noted that it can be challenging for producers to navigate differing PCR requirements across states. Producers may choose to satisfy the highest state target to then comply nationwide.
Under Colorado’s program, CAA must set PCR targets, verify PCR claims, and facilitate producers’ opportunity to purchase PCR at market prices. Regarding the third requirement, CAA is still developing its plan. Much will depend on the availability of PCR material, especially plastic. CAA has indicated that flexible plastics and PET thermoforms are among its preliminary list of priority target materials for investment into improved collection, processing, and recycling into PCR.
CAA is considering setting the minimum PCR rates for 2030 for Colorado at 10% for plastic and 20% for paper, glass, and metal. These rates can be modified as CAA gathers a fuller picture of producer data and may be waived for specific products, such as food-grade plastics. It is important for producers to understand that these rates would not be requirements for individual producers. Rather, they would be Colorado statewide targets CAA needs to achieve by incentivizing producer behavior through eco-modulated fees and increasing the availability of PCR material.
To harmonize the state programs, CAA plans to adopt a nationwide approach to PCR content. CAA plans to verify producers’ PCR use through the existing system of third-party certification.[4] Mass balance accounting will be an acceptable method. They will also randomly audit producers’ product portfolios. CAA intends to promote domestic PCR, particularly by improving plastic and glass supplies, but will not prohibit foreign PCR provided the foreign sources can be verified to satisfy the same high standards as American facilities.
The several state EPR programs for packaging contain many important elements for producers to understand, from obligated/exempt producer definitions to fee assessments to PCR provisions. Oregon will be the first state to publish eco-modulated fee estimates, anticipated in Circular Action Alliance’s Second Draft Program Plan due by the end of September.
[1] See California PRC 42053(e)(1); Oregon ORS 459A.884(4)(a); Colorado C.R.S. 25-17-705(4)(i)(IV)(C); Maine M.R.S. 2146.13.A.(1)(c); Minnesota HF 3911 (115A.1454(3)(iv)).
[2] California’s Beverage Container Recycling and Litter Reduction Act is available for download here.
[4] For example, see the Association of Plastic Recyclers PCR Certification page.
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