2021-08-25 EMC agenda item 5-b(1) - The FAQs of EPR _ Greenbiz

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Of course, there area couple of exceptions to the rule. Nonprofits and select producers are exempt, with producer exemptions tied to annual gross revenue (less than $5 million for the bill's first three years, less than $2 million thereafter) or annual volume of packaging sold in Maine (less than 1 ton of packaging, or less than 15 tons for producers of perishable foods). Other rare cases might charge retailers if they are solely responsible for importing a product into the state, although such occurrences will likely be uncommon. What will it Cost? While Maine taxpayers currently cough up an estimated $16 million to transport and dispose of their packaging, the sum of money LD 1541 will raise is yet to be determined. Maine's Department of Environmental Protection (DEP) has until December2023 to initiate a variety of rules, including the precise costs associated with each individual packaging material. From glass to paper to plastics, each ton of material brought into the state will come with a fee. As to what that fee wi 11 be —stay tuned. One thing we do know is that an "eco-modulation" system will tip the scales to benefit or discourage certain packaging designs. "Eco-modulation is a reallyfancyterm for fin ancial incentives," shared Harris. Through this system, materials such as black plastics, which are notoriously hard to recycle might carry a higher cost per ton than, say, clear plastics. While we don't yet know how the DEP will sort out the calculus, we do know it will encourage a laundry list of recyclers' dream criteria, with fees incentivizing recycled content, ease of recyc[ability, lower toxicity, increased reuse, reduction of litter and amount of materials used —even labeling that reduces consumer confusion. •w wit[ the money be • First and foremost, collected fees will reimburse Maine's municipalities for the cost of recycling packaging. "It is unlikely that municipalities will get 100 percent of their [packaging] recycling costs covered, even though that might be the goal," Harris noted. If we look to Quebec, a province that boasts a simi [a rly structured EPR system, the average municipality is reimbursed for96 percent of its costs. "That's pretty good." Beyond municipality reimbursement, a small portion willcover the EPRsystem's overhead costs and, perhaps more excitingly, funding will beset aside for education and infrastructure. Written in the bill is a required, in-depth assess mentof recycling infrastructure across the state. Once gaps are identified, recommended infrastructure investment and consumer education could be approved by the DEP. Who will run the system? Maine's DEP will have a lot of responsibility in the new EPR system, but it will not manage the process alone. The DEP will contract a stewardship organization — also referred to as producer responsibility organization, or PRO — to handle a variety of responsibilities. While notyetformed, the stewardship organization could likely be a nonprofit or conglomerate formed by a group of producers and brands. In charge of the day-to-day operation, it will provide the DEP with an annual report on thevolume of packaging being brought into Maine. In this way "the