What Is EPR, and How Does It Impact the Lubricants Industry?
Extended producer responsibility (EPR) is a policy approach aimed at shifting the responsibility for managing the collection, logistics and recycling of post-consumer packaging onto producers.
Any lubricant producer that sells consumer products in a state with EPR laws needs to comply. To date, California, Colorado, Maine, Oregon and Minnesota have passed such laws. As the regulatory landscape continues to evolve, it is important for our industry to prepare for compliance with both new and existing EPR legislation.
What are EPR fees?
Under these packaging EPR laws, producers have a legal obligation to pay compliance fees, which are used to fund state recycling systems, communication and outreach, and other administrative obligations. To facilitate this, states establish stewardship groups known as Producer Responsibility Organizations (PRO). PROs are responsible for collecting and managing fees from producers, which are based on the amount of packaging sold within the state. The specific fee structure is determined by each PRO or state’s regulations.
Who must comply?
The term “producer” varies from state to state, but in general, it refers to brand owners or their licensees. As an example, in California, a producer is “…someone who manufactures a product using covered materials and either owns or holds the license for the brand or trademark under which the product is sold in the state. If no manufacturer or license holder is in the state, the producer is the owner or exclusive licensee of the product’s brand or trademark. When no entity fits these criteria within the state, the producer is the one selling or distributing the product using those materials in California.”
Packaging EPR regulations apply to many consumer-based products across multiple industries, although there can be slight variations in applicability between states. Although some exemptions exist, they generally do not apply to lubricant producers. To understand the particularities and differences of each state, the Product Stewardship Institute has developed a comparison tool that is accessible through its webpage.
For the lubricants industry, there are notable variations among the states with current EPR regulations:
- California regulations exclude hazardous or flammable products but include antifreeze, brake fluid and ultra-low viscosity automatic transmission fluid.
- In Oregon, exclusions are related to products federally classified as toxic or hazardous, potentially including antifreeze, brake fluid and ultra-low viscosity automatic transmission fluid.
- Colorado’s regulations exempt packaging used solely for industrial or manufacturing purposes and packaging necessary for products required by state law to meet federal Poison Prevention Act standards.
- Maine has no specific exemptions that apply to the lubricants industry
What are the compliance deadlines?
Each of these states is currently working through a policymaking process that further defines EPR program expectations. They have developed timelines for implementation, which can include key dates to assign or join a PRO, completion of state assessments, and in some cases, timelines for when producers must begin to pay EPR fees.
Producers across various states now face impending deadlines to join their respective PROs.
In California, the requirement mandates their participation by 2027, while Colorado and Oregon expect producers to be on board by 2025. In Maine, producers will need to align themselves with the PRO with the first round of producer EPR fee payments by 2026. Meanwhile, in Minnesota, producers must register with the PRO by 2026 and with the PRO stewardship plan that is due by 2028.
Keeping Up with EPR Compliance
ILMA is a member of the National Lubricant Container Recycling Coalition (NLCRC). The NLCRC was formed in 2021 to bring brands and value chain participants together in an equal partnership to accelerate the achievement of packaging recycling solutions for petroleum-based and related products. The coalition monitors current and future legislation that could impact its target industries and continues to develop effective programs for the recovery and recycling of petroleum, automotive and engine lubricant containers, and the exploration of sustainable packaging solutions.
This year, the NLCRC will begin to advocate for approaches the industry can take to meet EPR requirements through innovation and collective action.
This article was contributed by the NLCRC and is part of a series. To learn more about the NLCRC, visit its website, connect on LinkedIn or email at hello@nationallcrc.com.
Read other articles in this EPR series:
EPR: Current Status and Future Implications