ILMA Urges Justice Department to Examine EPR Laws
ILMA submitted comments earlier today to the U.S. Department of Justice (DOJ) in response to its request for information on state laws with significant adverse effects on the national economy or interstate commerce. ILMA’s comments call for federal action to halt the growing patchwork of state extended producer responsibility (EPR) laws for plastic and paper packaging.
State-level EPR laws are intended to shift financial responsibility for recycling and disposal from municipalities and landfills to producers. For independent lubricant manufacturers, whose products are packaged in plastic containers that typically cannot be handled through standard recycling streams, these EPR programs pose existential threats to their competitiveness and viability.
Key Points from ILMA’s Comments:
- Burden on Interstate Commerce: Seven states (Maine, Oregon, California, Colorado, Minnesota, Maryland and Washington) have enacted EPR laws, each with conflicting definitions, reporting rules and fee structures. This fragmentation creates unconstitutional burdens on interstate commerce and disrupts lubricant supply chains.
- Threats to Competition: Fee structures set by privately run producer responsibility organizations (PROs) lack transparency, disproportionately harming small and mid-sized businesses. In Colorado, for example, an implementation fee of $0.56 per gallon would eliminate competitive margins for many ILMA members on commodity products, such as passenger car motor oils. In Oregon, fees imposed by the PRO on lubricant packaging are more than 16 times higher than for other rigid plastics.
- Federal Solution Needed: ILMA urges the DOJ to take action under the Commerce Clause and antitrust laws to invalidate state EPR laws and scrutinize PRO fee-setting practices. The Association further calls for a federal, uniform EPR framework—ideally led by the EPA—that would ensure national consistency, fair competition and sustainable waste management.
- Case for Federal Involvement: Without federal preemption, a patchwork of conflicting state laws will erode small business competitiveness, increase consumer costs and undermine national economic and environmental objectives.
Next Steps
ILMA will continue to advocate for a sensible policy approach that protects independent lubricant manufacturers while supporting circular economy goals. The Association met in August with the White House Office of Public Liaison and Small Business Administration’s Office of Advocacy, and intends to meet with DOJ and other executive branch officials to ensure industry concerns are addressed.
“Independent lubricant manufacturers cannot thrive under a fragmented, competitively uneven, state-by-state regulatory system. ILMA is committed to working with federal policymakers to secure a fair, uniform framework that supports manufacturers of all sizes while advancing shared sustainability objectives,” said ILMA CEO Holly Alfano.
“The country’s constitutional design allows states to regulate within their borders, but they cannot do so in a way that imposes extraterritorial mandates or creates major obstacles to the free flow of commerce among states. EPR implementation is a prime candidate for DOJ review,” said ILMA General Counsel Jeff Leiter.