Page 83 - Plastics News June 2024

IN THE NEWS

Approaching the PCR compliance wall

already being expressed for PCR, in-
cluding PET, HDPE and PP. That does
not include possible new policy drivers
that could further widen this gap.

New Jersey’s Recycled Content Law
states in its purpose statement, “By
requiring manufacturers to utilize
post-consumer recycled content, mar-
kets for such materials are enhanced
as demand shifts from virgin to recy-
cled sources. Recycling relies heav-
ily on supply and demand to keep the
industry afloat. As oil prices decrease
so do prices for virgin plastic which
subsequently decrease the demand for
recycled materials. Requiring manu-
facturers to meet minimum recycled
content requirements helps to stabilize
spate of recent laws in vari- tem that also delivers paper, glass and
ous states set lofty goals for metals to recycling facilities, as they markets, increase the resiliency of the
both recycling materials and all take a ride in the bin in residential recycling industry when oil prices fluc-
putting that recycled con- curbside recycling programs. How- tuate, and shield municipal recycling
tent back into new products. ever, as extended producer respon- programs from the volatility of the cost
However, the infrastructure and indus- sibility (EPR) laws for packaging are to recycle.”
try are not at the right scale to meet being implemented in California, Colo- Really? The legislature placed a heavy
those statute-mandated goals, and that rado, Maine and Oregon, we are years burden on this one law. While indeed
could spell legal and financial trouble away from seeing major increases in the demands are real, can this drive the
for producers. Those producers have recycling rates in those states. That level of investment needed to expand
a few options to consider, but action leaves a significant gap between the infrastructure, encourage participa-
must be decided on soon, as some of demand for recycled material, particu- tion, reduce contamination in residen-
the deadlines are already in play. larly plastic, and the available supply. tial streams and align material with op-
Combine that gap with the coming timal end markets? I think not.
The recycling industry knows that re-
cycling is not just about plastics; how- post-consumer resin (PCR) standards, Further, no company makes packaging
ever, for legislators, plastics are at the and there is a major issue ahead with destined for a particular state, or for
forefront of recycling policy. Whether respect to the mismatch of supply and that matter, three states. So, to meet
it’s California’s SB 54 pushing toward a demand, and it has legal ramifications. the demands of California, New Jersey
25% source reduction in plastic pack- Right now, the cumulative demand for and Washington, companies need to
aging, or the minimum post-consumer PCR from the three state laws plus the meet these standards across their na-
recycled content standards in Califor- voluntary commitments to use PCR by tional portfolios. That requires a level
nia, New Jersey and Washington, plas- brands far exceeds current availability of supply that simply will not be real-
tics are widely seen as the issue driv- of PCR. A study published in 2022 by ized in time for the compliance require-
ing policy. Independent Commodity Intelligence ments.
Services (ICIS) found that the U.S.
The good news in this is that solving Many brand commitments are coming
for increased recovery of plastics will would need an additional 140 materi- due in 2025 and the state laws have
bring solutions that improve the sys- als recovery facilities (MRFs) to close schedules that require achievement of
the gap and meet the demand that is

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June 2024