新的州可持续发展法将如何影响包装

INVESTMENT BANKING How New State Sustainability Laws Are Extended Producer Responsibility (EPR) will likely occupy anincreasing amount of bandwidth for packaging industry leaders EPR, of course, isn’t new to anyone in packaging. It made headlines earlierthis decade as part of comprehensive legislation passed in several states.Oregon (launched in 2025) and Colorado (launching this summer) are alreadyimpacting the value chain. Additionally, despite ongoing legal proceedings, morestakeholders within the value chain are becoming aware of EPR’s implications Author Brian FlynnManaging Director+1 312 364 5381 Michael LoffredoVice President+1 312 801 7886 While the rules vary state to state, their intent is the same—incentivize brands tofund enhanced recycling infrastructure and utilize increased recycled content in The laws apply to “producers,” typically brand owners, manufacturers,and importers of paper and plastic consumer packaging. But a great dealof uncertainty surrounds the rules—with legal fights already slowing EPRin Oregon. The following article explains EPRs, the questions around their The Nuances of EPR EPRs generally require producers to pay fees to a Producer ResponsibilityOrganization (PRO) that are about equal to the material they introduce into thestate. PROs act on behalf of members to meet the state’s recycling obligations •Upgrading recycling facilities•Expanding recycling access and services for residents•Covering costs for transportation and processing The laws aim to create uniform, statewide lists of what can and cannot berecycled, and where those materials can be recycled, making it easier forconsumers and improving the quality of materials collected. Producers must A key use of funds is the per-ton feepaid to recycling processors. The feesdepend on the type of packaging,but they are significant enough tomeaningfully impact the profitability Companies in states with EPRregulations will obviously be the mostaffected by the new rules. But suppliersto companies in those states mustbe able to track and provide proof of materials are either recyclable or One way to adapt are so-called“closed-loop models,” in whichcompanies manufacture andmechanically recycle products at theirown facilities—thus achieving REMstatus and eligibility for support made Still, some companies simply don’tbelieve states will levy large finesfor noncompliance—in part becauseimplementation often took yearslonger than expected. Legal fightsare also clouding matters, with apreliminary injunction granted in packaging companies.Part of producers’ fees also gotoward establishing and supportingResponsible End Markets (REM). REMsare recyclers that the laws hope willensure all covered materials that are There are other ways to get readyfor the new rules. At minimum, thatmeans meeting state data-capturerequirements and shoring upsupply chains, as compliance will be Eric Hoplin, president and CEO ofthe NAW, said his members “faceimminent and irreparable harm”from EPR “including unrecoverablecompliance costs, competitivedistortions, and the risk of steep civilpenalties.”1The injunction prevents Uncertainty Remains, Legal BattlesHave Started state officials from enforcing the EPRagainst the association’s members California’s looming (and moreaggressive EPR), plus the fourstates on track to come online in thefollowing years, might not be thelast programs that we see across thecountry. Other jurisdictions could including difficulty in transportingmaterials from rural or underservedareas to processing facilities,fluctuations in commodity prices anddemand for recycled materials, poor That will be around the timeColorado’s new law is set to take effectand when California is expected toannounce its fee structure ahead of a How Companies Can Prepare How these challenges will beaddressed is an open question—andit’s not the only one. Companiesoperating in more than one statewith EPRs will face jurisdictionaldifferences. For example, Oregonspecifically calls out food service warewhile Colorado is more detailed inthe types of paper products its law is at least initially, as REMs ramp up andcompanies work to comply with data-capture requirements. State regulatorsmight be gentler in the early days ofimplementation, leading to a sort ofmiddle ground—with possible delaysin implementation, to say nothing of experience in advising closed-loopmodels, including Revolution’s sale toArsenal Capital Partners, and a deepunderstanding of the complexities ofEPR. We would be happy to schedule a Select Packaging M&A Activity Recent packaging M&A activity continues to be anchored around strategic acquirers, with an William Blair Packaging Practice William Blair PackagingFranchise Activity Our leading packaging investment banking franchise is built ondeep sector expertise and our strong relationships with buyersaround the world. William Blair’s long history of advisingbusiness owners across packaging substrates and end-markets