Extended Producer Responsibility (EPR) laws are becoming more common as state governments adopt circular economy regulations. However, not everyone is happy with how these laws function, and one industry group in Colorado is suing to block EPR enforcement. The Independent Lubricant Manufacturers Association (ILMA) is suing the state, arguing that fees under the EPR law are too high and pose a risk to smaller manufacturers. The ILMA discusses its grievances in a press release:
“The Association has heard members loud and clear that packaging extended producer responsibility (EPR) laws like Colorado’s are an existential threat to the industry, with fees often exceeding profit margins. In Colorado, EPR fees are 56 cents per gallon for all packaged lubricants sold in the state, whether in plastic bottles or bag-in-a-box. This lawsuit is the first major step in a wholistic strategy to address the flaws in EPR legislation, which is rapidly creating a costly patchwork of state regulations that harms small businesses. ILMA is acting now so members do not have to face this threat alone. EPR laws shift the cost of recycling packaging materials from local governments to companies that produce and sell those materials.”
The ILMA lawsuit also takes issue with how EPR programs are set up. Oftentimes, EPR programs operate through private intermediaries contracted by the state. These intermediaries recommend and enforce regulations and oversee companies that contract with them. This is also the case with California’s EPR law for textile manufacturers. ILMA argues that these forced contracts with private entities violate their rights and that the private entities are not subject to significant oversight. The outcome of this case could have impacts beyond Colorado. If successful, it could become a blueprint for industry groups looking to challenge EPR laws more generally.
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