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Minnesota has joined a select group of states in making extended producer responsibility (EPR) the law of the land. The state\u2019s new EPR framework was established when Minnesota Governor Tim Walz signed his state\u2019s <\/span>Environment and Natural Resources Supplemental Budget Bill<\/a><\/span> into law on May 21, 2024.<\/span><\/p>\n The Packaging Waste and Cost Reduction Act, which spells out Minnesota\u2019s new EPR program, is part of the budget bill. The Act includes an EPR implementation timeline and requirements for producers, defined as brand owners, packaging manufacturers, and\/or distributors of packaged goods.<\/span><\/p>\n The legislation states: \u201cProducers must implement and finance a statewide program for packaging and paper products \u2026 that encourages redesign to reduce the environmental impacts and human health impacts\u201d of waste. The program aims to reduce waste through activities such as reuse, recycling, and composting; and provides for collection, transportation, and processing of the waste.<\/span><\/p>\n Packaging for certain critical-goods categories is exempt from Minnesota\u2019s EPR program. Exemptions include infant formula, \u201cmedical food,\u201d fortified oral nutritional supplements (in some cases), and medical equipment and devices and their associated components and consumables.<\/span><\/p>\n Minnesota producers must create a nonprofit producer responsibility organization (PRO) to implement the new EPR program. They are tasked with appointing a PRO by January 1, 2025, and the PRO must register with the commissioner of the state\u2019s Pollution Control Agency by July 1, 2026.<\/span><\/p>\n \u201cAcross Minnesota, we are inundated with packaging, from our doorsteps to store shelves. Packaging waste and printed paper now account for 40% of our garbage,\u201d said Minnesota State Representative Sydney Jordan in a <\/span>statement<\/a><\/span> released after the state\u2019s House passed the budget bill.<\/span><\/p>\n Jordan co-authored the Packaging Waste and Cost Reduction Act with Minnesota State Senator Kelly Morrison.<\/span><\/p>\n \u201cThe burden of managing this ever-growing deluge of packaging waste currently falls on local governments \u2014 and taxpayers. Today\u2019s bill takes steps to ensure the producers of this waste are paying their fair share,\u201d Jordan said.<\/span><\/p>\n Minnesota\u2019s new law does not make producers solely responsible for recycling costs, but over time producers will shoulder most of the expense. Producers will be required to pay 50% of net recycling cost by February 1, 2029; 75% by February 1, 2030; and 90% by February 1, 2031, and each year thereafter.<\/span><\/p>\n Several industry and environmental groups have come out in favor of Minnesota\u2019s new EPR law, including the American Beverage Association, AMERIPEN, the Consumer Brands Association, the Flexible Packaging Association (FPA), and the World Wildlife Fund.<\/span><\/p>\n FPA had initially opposed the legislation because it included arbitrary recycling goals, lacked critical-goods exemptions, and put the total cost of the EPR program on producers. However, after the state\u2019s legislature revised the bill\u2019s language to address these issues, FPA came out in favor of it.<\/span><\/p>\n The American Beverage Association (ABA) applauded the state\u2019s legislators \u201cfor enacting well-designed Extended Producer Responsibility (EPR) legislation, helping set a strong standard for effective collection systems,\u201d said ABA president and CEO Kevin Keane in a <\/span>statement<\/a><\/span> after the law\u2019s passage. \u201cThis bold solution will collect more recyclable materials, create local jobs, and help protect the environment without burdening Minnesota residents.\u201d<\/span><\/p>\n Keane added, \u201cThe Minnesota EPR legislation is modeled after successful EPR programs that create a circular system for packaging. These systems ensure producers fund and operate the system and have access to their recovered materials so they can be turned into new products. They also provide fair and appropriate government oversight and accountability. Importantly, this producer-led system will be financially sustainable and convenient for Minnesotans.\u201d<\/span><\/p>\n But not everyone is a fan of the new legislation. Shortly before Walz signed the budget bill into law, American Forest & Paper Association president and CEO Heidi Brock released a <\/span>statement<\/a><\/span> raising concerns about the EPR program and urging Walz to veto.<\/span><\/p>\n \u201cWe are disappointed in the Minnesota State Legislature\u2019s decision to include EPR language in [budget bill] HF 3911. Paper is one of the most widely recycled materials in the US, driven by market-based solutions and billions of dollars in investments advancing the best use of recycled paper in our products,\u201d Brock stated.<\/span><\/p>\n \u201cOur industry provides a recycling model to emulate rather than burden with untested systems that limit future investment. HF 3911 is not the appropriate vehicle for legislation that ultimately punishes responsible producers,\u201d she added.<\/span><\/p>\nIndustry groups weigh in.<\/h2>\n