2024 Regulations and Policies Watch: What's On the Horizon for Packaging

While not a federal regulation in the U.S., EPR packaging laws are gaining a foothold in more state capitols. In May, Minnesota became the fifth U.S. state to pass EPR legislation for packaging, joining California, Colorado, Oregon, and Maine. Under its shared responsibility model, Minnesota's Packaging Waste and Cost Reduction Act requires producers (i.e., brand owners) to pay half the costs of package collection and recycling by 2029, 75% by 2030, and 90% by 2031.

In addition to the five states noted above, according to the Sustainable Packaging Coalition, 10 states — Washington, Illinois, Tennessee, Michigan, New York, New Hampshire, Massachusetts, Rhode Island, New Jersey, and Maryland — introduced or amended packaging-related EPR bills in 2024.

While it's difficult to predict which state will be next to enact legislation, Maryland and Illinois appear to be the frontrunners. Both states have passed laws establishing EPR packaging needs assessments and feasibility studies. Maryland is currently conducting a needs assessment on package recycling, and it has selected a producer responsibility organization (PRO) as a member of its advisory council, which is required to develop recommendations on a proposed EPR plan for packaging by Dec. 1, 2024.

In January, California selected the Circular Action Alliance (CAA) as the state's PRO to help plastic packaging producers meet the requirements of the state's Plastic Pollution Prevention and Packaging Producer Responsibility Act. CAA also acts as the PRO for Maryland and Colorado. Producers in Colorado must register with the CAA by Oct. 1, 2024.

As part of its EPR packaging law, California has published draft rules (download PDF) detailing new industry responsibilities to cut waste and increase recycling. In July, the state posted a list of covered material categories (download PDF) hat producers will be required to fund the collection and recycling of those materials in 2027.

State PCR Content Laws

Compelling CPG (consumer packaged goods) brand owners to integrate post-consumer recycled (PCR) content into their packaging portfolio reduces the environmental impact of packaging, supports the recycling infrastructure, and helps to boost end-market investments.

Five U.S. states mandate minimum PCR content requirements in plastic packaging:

• California: Plastic beverage bottles sold by beverage manufacturers in the state are currently required by law to contain 15% PCR. That percentage will increase to 25% PCR by 2025 and 50% by 2030. The law also requires beverage manufacturers to annually report virgin plastic and PCR plastic usage by pounds and resin type.
• Connecticut: Plastic beverage containers sold in the state must contain at least 25% PCR content by 2027 and 30% by 2032.
• Maine: Plastic beverage containers must contain at least 25% PCR content by 2026 and 30% by 2031.
• New Jersey: Single-use plastic beverage bottles sold in the state must contain at least 15% PCR content, and all other rigid plastic containers must contain at least 10% PCR. The amount of PCR content increases by 5% every three years (i.e., 20% in 2027, 25% in 2030, and so on) for beverage bottles and 10% every three years (i.e., 20% in 2027, 30% in 2030, and so on) for all other rigid plastic containers until reaching a 50% PCR threshold. Hot-fill applications are capped at 30% PCR. All glass containers filled with foods or beverages sold in the state are required to contain, on average, at least 35% PCR (cullet) content.
• Washington: Most plastic beverage bottles must contain 15% PCR content, which increases to 25% by 2026 and 50% by 2031. For personal care and household cleaner products, the plastic packaging must contain 15% PCR by 2025, 25% by 2028, and 50% by 2031.

Single-Use Plastic Packaging Rules

Multiple regulatory activities — from a Federal Plastics Registry in Canada and plastic pollution lawsuits in the U.S. to the EU's Packaging and Packaging Waste Regulation and the UN's Global Plastics Treaty —  target single-use plastic packaging around the globe.

In April, the Canadian government established a Federal Plastics Registry (the "Registry") as part of its goal of zero plastic waste by 2030. In 2019, Canadians discarded 4.4 million tons of plastic waste, with only 9% recycled, notes a government news release. The Registry requires resin manufacturers, service providers, and producers of plastic products to report annually on the quantity and types of plastic they manufacture, import, and sell.

Furthermore, the Registry compels producers of plastic products and service providers to report on the quantity of plastic collected for diversion, reused, recycled, processed into chemicals, composted, incinerated, and landfilled. For the packaging category, reporting will phase in over a two-year schedule beginning in September 2025.

In the U.S., the General Services Administration issued a final rule in June that makes it easier for federal agencies to identify and source single-use plastic-free packaging. In July, the Biden Administration released a report on plastic pollution calling for the federal government to phase out the purchase of single-use plastics in food service facilities, packaging, and events by 2027, and for all federal operations by 2035.

The city of Baltimore filed a lawsuit in June against several brand owners, such as Coca-Cola and PepsiCo, and plastic manufacturing companies to recoup the costs associated with cleaning up plastic pollution allegedly created by these companies. Last fall, the state of New York sued PepsiCo for plastic packaging pollution in and near the Buffalo River.

These types of lawsuits involving single-use plastic packaging waste may become more frequent. Less than a week after the Baltimore lawsuit announcement, the Center for International Environmental Law (CIEL) released a report, "Making Plastic Polluters Pay: How Cities and States Can Recoup the Rising Costs of Plastic Pollution." According to a press release from CIEL, the report "exposes how plastic pollution places ever-greater burdens on the resources, budgets, and economies of U.S. cities and states alike, and equips state and local governments with legal tools to hold plastic producers accountable for their harms."

In April, the EU Parliament and Council provisionally agreed to the Packaging and Packaging Waste Regulation (PPWR), a set of rules to reduce packaging waste, increase recycling rates, make all packaging recyclable, harmonize labeling for consumer sorting and recycling, require labeling for reusable packaging, mandate minimum percentages of recycled content from post-consumer plastic waste, and ban single-use plastic packaging for some applications.

A newly elected EU Parliament is expected to vote to finalize the PPWR rules this fall. If that happens, EU member states will vote to approve the text. Once finalized and approved by all parties, most requirements of the PPWR will become effective as early as 18 months after publication in the EU Official Journal.

In late November, thousands of delegates from more than 150 nations will meet in South Korea at the fifth and final round of talks to hammer out the UN's Global Plastics Treaty to eliminate plastic pollution. Earlier talks have discussed plastic resin production limits, plastic production fees to fund environmental cleanup and recycling, health concerns around chemicals in plastic, mandatory vs. voluntary requirements, and other issues.

Following the treaty's completion, the UN will convene a diplomatic conference where heads of state can sign the legally binding document.

Tariffs on Steel and Aluminum Products

In May, the Biden Administration announced tariff increases from 7.5% to 25% on some Chinese steel and aluminum products, including metal cans and containers. In response to public comments on the tariffs, the administration plans to issue its final determinations by the end of August. The new tariffs go into effect two weeks after the determination announcement.

Environmental Marketing Claims

Last updated in 2012, the U.S. Federal Trade Commission's (FTC) Green Guides help marketers avoid making environmental marketing claims that are unfair or deceptive. In addition, the guides reveal how consumers are likely to interpret particular marketing claims and how marketers can substantiate these claims.

Last year, the FTC began a formal review on potential updates and solicited comments on the guides. Areas of focus included carbon offsets, renewable energy, advanced/chemical recycling, thresholds for recyclable claims, recycled content, compostable and degradable claims, and other terms. Some observers believe this process will result in an update to the guides by the end of the year.

While the Green Guides are useful, packaging trade groups are pushing for a federal law on environmental marketing claims to bring labeling uniformity throughout the U.S. Currently, some states such as California are moving toward labeling standards that could create a patchwork of regulations.